2017 issue 2 insiderubber · bash will help attendees realize their true potential by eliminating...

Safety Focusesin the Spotlight

Proactive Equipment Maintenance

Training Modules for ISO Compliance

Rising Costs of Employee Benefits

INSIDERUBBERStrategies for Future Success

2017 Issue 2

The Official Publication of the Association of Rubber Products Manufacturers

What people are saying...

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Grainger offers ARPM members signifi cant discounts off 13 categories, including:• Motors• Safety (people)• Electrical• Safety footwear

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R A S S O C I A T I O N M A N U F

www.arpminc.org | 3

FEATURES6 ARPM Benchmarking & Best Practices Conference

8 View From 30 Making the Cut: Custom Rubber’s Approach to Improving Mill Extractions

Accident Investigations Should Focus on Root Cause

12 Solutions Rethinking Equipment Maintenance: Transitioning to a Proactive Approach

18 Outlook TrainingCertificationAssists with ISO Requirements

20 Review EHS Summit Reinforces Safety Culture for Attendees

26 Benchmarking Rising Costs and Pressure Associated withEmployeeBenefits

www.arpminc.org

Departments 4 President’s Letter 16 Member News 17 Calendar 22 Industry34 Ad Index

CONTENTS 2017 Issue 2

INSIDERUBBER

8

28 Strategies An Ounce of Information Security or a Bitcoin of Cure: Protecting Your Company from Ransomware

31 Focus OSHA Under Trump: The Waiting is the Hardest Part

32 Management Mistakes to Avoid When Communicating Change

12

18 28

4 | InsIdeRubbeR • Issue 2 2017

For advertising information, please contact ARPM.

Opinions expressed in this publication may or may not reflect the views of the Association and do not necessarily represent official positions or policies of the Association or its members.

Officers and Board of DirectorsPresident Tim Jarvis, Continental ContiTech

Treasurer Chris Wagner, Chemspec Polymer Additives

SecretaryJoe Keglewitsch, Ice Miller LLP

Board of DirectorsDarren Beatty, Wabtec Rubber Products Kirk Bowman, The Timken Company Charlie Braun, Custom Rubber Corp. Joe Colletti, MarshBellofram Randy Dobbs, Sperry & Rice, LLCLaura Hoggan, Rubber & Plastics, Inc.Lisa Huntsman, Lauren Manufacturing Dave Jentzsch, Blair RubberTom Pitstick, Gates CorporationMarel Riley-Ryeman, Southern Michigan RubberGreg Vassmer, Trostel LimitedJoe Walker, Freudenberg-NOK Sealing Technologies

ARPM TeamExecutive Director Troy Nix – [email protected]

Managing Director Letha Keslar – [email protected]

Managing Editor: Dianna Brodine Art Director: Becky Arensdorf

Published by:2150 SW Westport Dr., Suite 101Topeka, KS 66614Phone: 785.271.5801

7321 Shadeland Station Way, Suite 285 Indianapolis, IN 46256

Phone: 317.863.4072 | Fax: 317.913.2445 [email protected] | www.arpminc.org

©Copyright 2017


Tim J. JarvisContinental ContiTech ARPM Board President

President’s Letter

“As ARPM grows and engages with all sizes of companies...the association’s value expands.”

Greetings, ARPM Members:

It is my hope that you are enjoying a fast and furious recovery in the rubber industry this year! I often hear this phrase when referring to an increase in business: “This is a good problem to have.” Considering the alternative in dealing with the perils of a downturn, this statement is generally true. However, as we all know, rapid growth also has its challenges. Suddenly, we shift gears toward locating, hiring and retaining people. We wrestle with raw materials supply increases while ensuring quality standards are uncompromised. The business must match the increase of capacity that

follows growing customer demand without extending lead times or missing deliveries. Again…a good problem to have, but not without stress!

Enter the calvary…ARPM to the rescue! The association has many programs, educational materials and venues to assist in all aspects of the rubber up-and-down business cycle. Successful onboarding of new employees is essential, and ARPM can assist with training modules, detailed industry technical information and peer-to-peer interaction amongst HR professionals. Thinking of the bottom line...the association also can offer solutions with industry service and product providers for significant savings. As ARPM grows and engages with all sizes of companies in the rubber business and executes on future initiatives, the association’s value expands.

The ARPM programs for the back half of 2017 promise to offer great opportunities for networking and create industry solutions to help our business challenges. We encourage you to check out the following events (visit www.arpminc.org to register your attendance):

• October 3: Sigmasoft Webinar• October 11-13: ARPM Annual Benchmarking Conference,

Indianapolis, Indiana• November: Various Leadership & Functional Peer-to-Peer Webcast

Exchanges

As always, your ongoing support and participation are greatly appreciated. Let’s keep this progressive year on track by assuring a safe work environment for our employees, becoming experts in the products we produce and supporting mutual growth in our endeavors in the rubber industry!

Tim J. JarvisContinental ContiTech, Inc.

Over 100 Technical Standardsare available including:

IP-1: Conveyor and Elevator Belt Handbook MO-1: The ARPM Rubber Handbook

OS-1-4: Harmonized Material Datasheet

As a special benefit, members of ARPM receive all technical standards for free!

PRINT ON

DEMAND OPTION

Over 100 Technical Standardsare available including:

IP-1: Conveyor and Elevator Belt Handbook MO-1: The ARPM Rubber Handbook

OS-1-4: Harmonized Material Datasheet

As a special benefit, members of ARPM receive all technical standards for free!

PRINT ON

DEMAND OPTION

This year’s theme – AN UNCHARTED JOURNEY – is designed to inspire, motivate and educate processors on how to positively influence the people around them. Becoming better is not something that just happens – good leaders continually work to

make themselves better, and the 2017 Benchmarking and Best Practices Conference will help them do that!

SpeakersSTANDOUT LEADERSHIP – LEAD LIKE YOU MEAN IT!Connie Podesta, author, TV personality and comedienneAccountability and ownership to increase performance are powerful tools. In a perfect world, all employees would be high-achieving, self-motivated, engaging team players who see the big picture and always strive to do their best to get the job done on time without complaining. Does that sound like the Twilight Zone? Bottom line: In the real world, many employees simply “meet expectations,” lack initiative, bring their personal life to work, stress over every change and whine about having to work … on the job! “Enough!” says human behavior and leadership development expert Connie Podesta . With her signature blend of comedy and “tell-it-like-it-is” delivery, Podesta takes attendees inside the minds of their most difficult employees to turn negative attitudes into positive, entitlement into accountability, complacency into productivity, complaining into solutions and “that’s not my job” into ownership.

HOW TO BRIDGE THE GAP – HARNESSING UNIQUE GIFTS TO SERVE OTHERSChris “Bash” Bashinelli, global explorer and speakerA leader unflinchingly places the needs of others above his or her own. This drive to serve clients stems from recognizing that all human beings are interdependent. Having walked in the shoes of everyone from Pakistani fishmongers to Mongolian nomads, Bash sees firsthand how every role is just as valuable as the next, and no one is more important than another – be it the secretary, the janitor or the CEO. Being a global leader doesn’t mean changing jobs, joining the Peace Corps or even traveling abroad! Rather, it means recognizing the service already provided to clients and the difference already made in people’s lives. Bash will help attendees realize their true potential by eliminating self-doubt through exercises that reinforce trust in themselves. Through stories of leaders who have overcome unthinkable obstacles around the globe, Bash reaffirms that productivity can be increased by shifting focus from self to other.

MANAGING TO WIN!Joe Theismann, world champion quarterback, broadcaster and entrepreneurIn his charismatic and entertaining style, Joe Theismann draws parallels between his successful career as an NFL quarterback and YOU – the executive, manager, salesperson, group or individual – with the goal of Managing to Win! He knows and understands that good management and effective leadership is not a game of follow the leader: It is about PEOPLE – listening to them ... trusting them ... and motivating individuals to take ownership of team goals. By example, Theismann shows that an effective leader cares about and trusts subordinates and demonstrates it by empowering individuals to take risks in order to perform above levels that have become comfortable.

Oct. 11-13, 2017Indianapolis, IndianaIndianapolis Marriott Downtown

New location!

Game Changers During these Game Changer Sessions (or breakout sessions), industry executives and leading experts will be on hand to share information and data while facilitating discussions, cross talk, and question and answer sessions. Conference attendees will attend two 45-minute sessions. More sessions will be added as details are finalized. Topics will include:

Manufacturing 4.0 Capitalizing on a Dynamic Industry: Essential Factors to Future Success Synthetic Rubber Market Conditions Preparing for the Next Economic Downturn

RegisterARPM MEMBERS: $775NON-MAPP MEMBERS: $995GROUPS OF FOUR OR MORE ARPM MEMBERS: $675/personGROUPS OF FOUR OR MORE NONMEMBERS: $895/person

AgendaA full schedule can be found at www.arpminc.com/conference. The schedule is subject to change.

7 a.m. Registration and Breakfast8 a.m. Welcome

Troy Nix, MAPP executive director8:30 a.m. Keynote Address

Standout Leadership – Lead Like You Mean It

Connie Podesta, business and motivational speaker 10:15 a.m. Quick Fire Sessions 11:30 a.m. Today’s Innovations Panel Noon Networking Lunch

OR Lunch and Learn with Connie Podesta (ticket-only event)1 p.m. Game Changers (Breakout Sessions)

8 a.m. Functional Area Groups 9:40 a.m. Best Practices from Employers of Choice10:20 a.m. Using Social Analytics to Obtain Real-Time Understanding of Employee Engagement11 a.m. Managing to Win!

Joe Theismann, entrepreneur and former Washington Redskins quarterback11:55 a.m. What’s Next?

Thursday, Oct. 12

Wednesday, Oct. 11

Friday, Oct. 13

5:30 p.m. Industry Welcome Reception

To register for the conference, visit www.arpminc.com/conference.

3 p.m. Quick Fire Sessions4 p.m. How to Bridge the Gap

Chris Bashinelli, TV host and global explorer5 p.m. ARPM Annual Meeting5:15 p.m. Members’ Choice Reception

Photo credits: Corie Farnsley, CorComm Creative; Indianapolis Marriott Downtown


View From 30

According to a 2015 news release from the Bureau of Labor Statistics, within the manufacturing industry, individuals

who work in rubber manufacturing are among those with the highest rates of workplace injury. The Occupational Safety and Health Administration (OSHA) and other safety professionals suggest that precautions be put in place to avoid otherwise common dangers – for example, safeguarding against contact with moving machine parts, not wearing jewelry or loose clothing around machinery and avoiding stepping or reaching across running equipment. While Custom Rubber Corp., Cleveland, Ohio, has been proactive in protecting its employees over the years, it is now working even harder to develop an innovative method to increase worker safety and avoid contributing to these statistics.

Mill extraction drill planningOne of the more challenging positions from a safety perspective is that of the rubber mill operator. With its rapidly moving rolls and the necessity for manual involvement, the risk of the employee becoming caught and pulled into the machine is great. Whether trying to retrieve a tool or work the material, an employee can potentially be pulled toward and into the nip point, risking injury or even death. Because of these hazards, many rubber manufacturing companies schedule extraction drills at

Making the Cut: Custom Rubber’s Approach to Improving Mill Extractionsby Lara Copeland, contributing writer, InsideRubber

regular intervals to practice life-saving protocols. Custom Rubber practices such drills monthly.

A group at the company has developed a plan to act as efficiently as possible to rescue a victim during drills or should an actual emergency arise. Focusing on the big picture, Mill Operator Steve Kolat said, “The goal is to have the victim out of the machine and laid down on the floor, awaiting paramedics, within four minutes.” Custom Rubber Corp. utilizes a handful of resources to accomplish this goal, including a rescue team and a kit the company calls a “mill safety cabinet,” which is full of tools that can assist the rescue team in retrieving the trapped victim.

Until recently, a 50-pound load of rubber, as opposed to a 100-pound full bank of rubber, was used during extraction drills. As the company brought on more and more new employees, Kolat decided to try running a safety drill using the full bank. To his surprise, the fuller bank proved to be much more difficult to cut in the middle of the rolls, or “logs” as often referred to on the shop floor, where the diameter measures six to eight inches thick. The team does have a two-inch blade that effectively cuts through the portion of the bank that is only one-inch thick. President Charlie Braun clarified, “Cutting one-third or even half

the rubber out of the way is part of the equation, but we need to be able to cut through the log.” And thankfully, it seems this last part of the equation soon may be solved.

Hot knife may be the solutionJerry Wear, an almost 30-year veteran of the plastics industry, recently brought his expertise to Custom Rubber as maintenance manager. Upon witnessing the company’s extraction drill, Wear saw ample room for improvement. “When I witnessed the drill in action, I realized it could actually create more damage to the operator once the safety incident had occurred,” he recalled. “When

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you’re trying to cut through a bank of rubber with a victim’s arm or hand in there, you’re going to end up ripping the arm or hand with the rubber as you hack through it.” But, as he explained, “With a hot knife, you can leave all that in place, control the cut through it and then get the hand or arm out.” This may result in more than just saving the extremity caught in the mill; it also can save the victim’s life.

Kolat described a hot knife to be similar to a solder gun. “It has a blade on it, and it heats up so you can cut through material like rubber,” he explained. Shaped like a large knife with a flat and blunt blade, it melts through the rubber quickly and efficiently. In the plastics industry, Wear said that he saw the hot knife used frequently to cut headers off the barrels. Understanding their capabilities, Wear asked if the less-effective knives could be replaced with hot knives. He then was asked to look into it.

In his search, Wear not only tested an assortment of hot knives, he also had some blades fabricated. Unfortunately, they all failed for a variety of reasons. “One of the problems we were having is that the blade has to be about six inches long, and we have to figure out the amount of wattage we need on the gun to heat them up so they’ll cut efficiently,” Kolat said.

Following the failed attempts, Wear discovered a potential solution. “I saw a video from Carolina Knife Company featuring an item called “Big Red,” he continued. “As a testament to its strength, this hot knife was shown in the video cutting through a six-inch piece of rubber, and that’s exactly what we want to do.” Wear contacted Carolina Knife Company and ordered ‘Big Red,’ hoping that this would be the final piece to the puzzle.

When the knife arrives in the near future, it will be mounted on the mill. To use it in an emergency situation, one person will need to pull its trigger to heat it up. The heating process will take 15 to 30 seconds, but as Wear described, “it is still faster and more controllable than trying to hack through rubber with a normal knife blade.” In the weeks ahead, the company

will test out “Big Red” during an extraction drill and gauge its effectiveness. “When the new equipment is implemented, our goal is to have the victim out in three minutes, because the quicker we can get him out of the mill, the better the outcome is,” Kolat said. “You’ve got to be fast and efficient, but you also have to be safe at it, too.” n

The Association for Rubber Products Manufacturers (ARPM) is collecting videos of mill extraction drills to include in its best practices library. Typically, these drills emphasize the importance of an effective mill rescue program and describe the mill rescue kit, team, procedures and drills. Videos will be housed on ARPM’s YouTube page and website (www.arpminc.com) for members to reference. To see a mill extraction drill video from Custom Rubber, visit https://www.youtube.com/watch?v=tdwNKNCeYPI.


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View From 30

In 2015, approximately 2.9 million nonfatal workplace injuries and illnesses were reported by private industry employers,

occurring at a rate of three cases per 100 equivalent full-time workers, according to an October 2016 news release from the US Bureau of Labor Statistics (US BLS). The 2015 rate continued a pattern of declining injuries and illnesses over the past 13 years, with the exception of 2012.

Specific to the private manufacturing industry, 353 fatal injuries occurred, a slight increase over 2014. The December 2016 news release from US BLS noted the 2015 fatal injury total for manufacturing was the highest for that industry sector since 2008.

While the goal should always be a 100 percent accident-free workplace, no amount of training or preparedness can eliminate every potential incident. When an incident does occur, it’s important to look for and eliminate the root cause of the event.

OSHA recommends root cause identificationWhen reviewing the circumstances of a workplace accident, investigators should resist the urge to assign blame or fault. Instead, focus on the root cause of the incident, which will ultimately lead to a safer workplace. According to the OSHA website, “investigating a worksite incident provides employers and workers the opportunity to identify hazards in their operations and shortcomings in their safety and health programs. Most importantly, it enables employers and workers to identify and implement the corrective actions necessary to prevent future incidents.”

When investigating, questions should center on “why” – Why did the unsafe condition exist? Why was the problem not identified previously? Why was a rule not established to help workers avoid the danger?

“It is far too easy, and often misleading, to conclude that carelessness or failure to follow a procedure alone was the cause of an incident,” explained the OSHA site. “To do so fails to discover the underlying or root causes of the incident, and therefore fails to identify the systemic changes and measures needed to prevent future incidents.”

ARPM member has set investigation proceduresOne ARPM member shared his company’s investigation procedures with other association members on the group’s online

forum. Matt Moorhouse, EHS manager with Marsh Bellofram, explained, “Investigating an incident has to be done promptly to get the most accurate and beneficial information. We strive to be as proactive as possible, especially when it comes to corrective actions. If we can’t find what the true root cause is, the chances of preventing similar circumstances in the future are greatly limited.”

1. Secure the work site. Ensure nothing is tampered with or changed so the investigator can get all applicable information, document and then remedy the conditions so the site is approachable.

2. Be sure to Lockout/Tagout any equipment involved, if necessary, until the investigation is complete.

3. Take pictures of the scene to refer to during the entire investigation.

4. Interview the parties involved and witnesses. Ideally, this should be done as soon as possible after the incident happens.

5. Remember to look for FACTS, not FAULTS.6. Review the incident history of the parties involved to see if

there is a trend.7. Review the training and experience of those involved with

the supervisor/manager.8. Use the “5 Whys” to determine the root cause and any other

causal factors.9. Use all applicable data to analyze the situation to determine

why the incident happened and, ultimately, form corrective actions to ensure it doesn’t happen again.

Additional ResourcesNational Safety Council’s How to Conduct an Incident Investigation: http://www.nsc.org/JSEWorkplaceDocuments/How-To-Conduct-An-Incident-Investigation.PDF

OSHA’s Incident Investigations: A Guide for Employers, December 2015: https://www.osha.gov/dte/IncInvGuide4Empl_Dec2015.pdf

For specific questions and procedures, contact OSHA.

Accident Investigations Should Focus on Root CauseBy Dianna Brodine, managing editor, InsideRubber

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Rethinking Equipment Maintenance: Transitioning to a Proactive ApproachBy Larry Bouvier, CMRP, and Rob Levandoski, president, Fuss & O’Neill Manufacturing Solutions, LLC

Solutions

The competitive pressures facing America’s manufacturers, including molders, are well documented. Labor costs,

competition from inexpensive imports, inconsistent availability and fluctuating costs of materials – these are the day-to-day issues that keep manufacturing administrators up at night.

One of the biggest challenges facing manufacturers also is the most controllable – asset management. Manufacturers often fail to pay adequate attention to the condition of the equipment and infrastructure on which they rely every day. The result often is lower throughput, reduced equipment reliability, higher accident rates and increased expenses to meet regulatory obligations.

When these problems do occur, they represent self-inflicted wounds caused by companies taking a reactive approach to maintenance, waiting for equipment failures or accidents to occur before taking action. Instead, manufacturers should be proactive, creating integrated asset management and maintenance programs designed to regularly assess and monitor equipment while also reviewing operator skills and workplace conditions.

This isn’t just an issue with molders; the problem is widespread and extends beyond industries. Only about one in 10 companies has an effective and comprehensive maintenance and equipment management program in place to keep systems operating

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efficiently and safely. As a result, each year American businesses lose more than $500 billion to equipment breakdowns or inefficiencies and the inevitable loss of productivity that comes with those breakdowns.

Proactive strategyHaving an effective maintenance and asset management strategy is crucial. Effective maintenance keeps equipment running properly, ensures production schedules remain on target and provides a safer work environment. Maintenance also can save companies significant money by avoiding costly equipment repairs or replacement losses caused by production shutdowns or slowdowns, as well as unnecessary worker injury costs. It typically costs companies five to 10 times more to react to breakdowns than to implement a proactive maintenance program.

One of the primary challenges to implementing a proactive maintenance program is that there’s currently a shortage of experienced and qualified maintenance professionals, both at the manager and technician level. As a result, more than 90 percent of all American maintenance workers today have not been formally trained.

Think about that for a moment. A manufacturer may spend tens of thousands – perhaps millions – of dollars on equipment that is essentially its operational lifeblood. If that equipment doesn’t operate properly, the manufacturing process could come to a grinding halt. Yet, most companies have unqualified personnel keeping watch over it.

The problem has been a long time in the making and can’t be turned around in a week or a month. Apprenticeship programs for training maintenance managers and staff are no longer common among the nation’s manufacturers.

Whereas in the past companies maintained grueling programs that provided the expertise and experience participants needed to take care of their companies’ maintenance needs, today’s companies are cutting back on training and skills development, leading to a dramatic drop in technical competence. Now that the last generation’s trained professionals are rapidly approaching retirement age, too few trained and experienced people are available to take their place.

This shortage couldn’t come at a worse time. The complexity of the equipment and software systems that are in use at most manufacturers today make it more important than ever for companies to have proactive maintenance programs in place. Yet, many companies struggle to implement those programs.

Acting todaySo, what can companies do to implement proactive maintenance?

The first step is to conduct a maintenance program audit, establishing a baseline assessment to understand where the

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program stands today versus where the program and skills need to be, based on the type of equipment and the skills needed to maintain it. This starts with a visual evaluation of the equipment condition and technician interviews.

The assessment continues with an evaluation of how the company plans, schedules and monitors equipment functionally, further assessing the recordkeeping and information management to monitor how it is operating. The evaluation, which also looks at failure planning and asset condition monitoring, can be conducted either by in-house maintenance managers or maintenance process consultants.

Once the evaluation is completed, a short-term plan needs to be developed for fixing problems identified during the audit phase. The plan should be created with the goal of getting equipment fully operational as quickly as possible. Half solutions and quick-fix approaches don’t work, and they typically lead to new problems down the road while hindering productivity in the short term.

However, while these initial steps represent progress, they are still reactive. The goal of every manufacturer should be to have a proactive maintenance program in place. This doesn’t happen overnight; many companies find that they need to implement three- to five-year plans to move from reactive to proactive maintenance.

Life cycle plans are created by establishing production goals for equipment and then determining maintenance best practices that will lead to that equipment being able to achieve those goals. Every company, facility and piece of equipment is different, and the plans for meeting those goals must be built around the unique characteristics and challenges presented by the company and its equipment. Experienced maintenance managers who are familiar with the equipment being used and its capabilities should have no trouble creating a workable and effective maintenance plan.

The question is, where do these experienced managers come from if experienced and accomplished professionals are in such short supply? Companies with inadequate maintenance resources can follow one of two routes for acquiring the experience needed to create and implement a maintenance program.

The first is to recruit talent from other companies. This can be an excellent strategy for finding talented maintenance managers, but because the shortage of experienced managers has created a seller’s market, it also can be more expensive. One advantage of this approach, however, is that it provides a long-term solution since the manager is likely to stay on with the company and implement the program after it is developed and once it is up and running.

The second potential route is to retain a maintenance consultant on a short-term contract. The consultant can create a maintenance

plan and coordinate training for the company’s maintenance staff to implement that plan. The long-term success of this approach rests on the ability of maintenance staff to implement the program after the consultant has left.

Mold manufacturers that take a proactive approach to maintenance can save thousands – even millions – of dollars by avoiding expensive equipment repair, productivity stumbles and safety-related losses. Companies that make a commitment to proactive maintenance don’t just save money – they also create a better work environment, produce a better product and gain an edge over their competitors. n

Larry Bouvier is a maintenance reliability professional and Rob Levandoski is president of Fuss & O’Neill Manufacturing Solutions, LLC. Manufacturing equipment productivity typically runs less than 50 percent. Fuss & O’Neill helps clients bring greater efficiency to day-to-day manufacturing operations while developing improved systems for increased productivity, reliability and safety. With tools and training materials created specifically for its clients, the company provides results that are both immediate and sustainable. Bouvier can be reached at [email protected]. Levandoski can be reached at [email protected].

Maintenance also can save companies significant money by avoiding costly equipment repairs or replacement losses caused by production shutdowns or slowdowns, and unnecessary worker injury costs. It typically costs companies five to 10 times more to react to breakdowns than to implement a proactive maintenance program.


Member News

Benchmarking Offers Members Valuable Insights2017 Union ContractsAs many ARPM member companies and rubber manufacturing facilities identify as union organizations, ARPM set out to collect examples of union contracts. This 283-page benchmarking document includes union contract examples from rubber manufacturing companies, allowing industry executives to benchmark their current contracts against others in the

industry. Due to the highly sensitive nature of this document, requests for a copy of this benchmarking handbook can be sent to [email protected].

Health and BenefitsThe 2017 ARPM Health and Benefits Report was released earlier this year. This report includes information regarding trends in health insurance premiums, insurance increases, vision, dental and life insurance, as well as retirement plans and matching programs. All information is specific to the current landscape of health insurance and ancillary benefits being provided by rubber products

manufacturers in North America. This report is available for purchase on the ARPM website at www.arpminc.org.

Additional BenchmarkingSeveral additional benchmarking activities will be completed in 2017, including the following:

•Overhead Costs•Wage and Salary•Mill Safety Videos• Educational Outreach Initiatives

ARPM Welcomes New MembersARPM is proud to welcome the following organizations into ARPM’s network:

•Abtrex Industries, South Bend, Indiana•Aero Rubber Company Inc., Tinley Park, Illinois•Cameron-Schlumberger, Katy, Texas•Hoosier Gasket Corporation, Chevy Chase, Maryland• The KONG Company, Golden, Colorado• The Plasticoid Company, Elkton, Maryland

ARPM Welcomes New SponsorsARPM sponsors support the betterment of the rubber manufacturing industry, and their support enables ARPM to develop programs and services that help the industry and ARPM member companies. ARPM’s leadership proudly welcomes the following sponsors:

•Ace Products and Consulting, Uniontown, Ohio

• SIGMA Plastic Services, Inc., Schaumburg, Illinois

2017 Benchmarking and Best Practices Conference – What to ExpectOctober 11-13, Indianapolis, Indiana

Once again, the Benchmarking and Best Practices Conference promises to inspire, motivate and educate processors on how to positively influence the people around them, make an impact in their organizations and become better leaders.

The core of this year’s Benchmarking and Best Practices Conference will address key issues of leadership, operational best practices, the latest financial benchmarks, sales and marketing, and much more, with more than 13 breakout sessions and the popular Lunch and Learn option with keynote speaker Connie Podesta. The Conference will bring more than 600 manufacturing professionals to Indianapolis, Indiana, October 11 through 13, and attendees will enjoy a schedule full of best practices, leading-edge benchmarks, expert presentations and the best networking opportunities in the industry.

Rubber industry executives can anticipate valuable breakouts, such as Manufacturing 4.0, Synthetic Rubber Market Conditions, Preparing for the Next Economic Downturn, Apprenticeships, Collaborative Robots and a unique Presidents & Owners Track.

To register for this conference, visit www.arpminc.org/conference.

Safety Award WinnersEach year, ARPM recognizes those organizations that achieve safety performance levels above industry averages. These organizations are dedicated to creating and sustaining safe work environments, which in turn positively impacts both their

www.arpminc.org | 17

employees and their organizations as a whole. ARPM would like to recognize the following organizations on their achievements and dedication to safety.

Gold Award Winners (no occupational injuries or illnesses during 2016):

•Chardon Custom Polymers, LLC•HBD Thermoid, Inc.• Legg Company, Inc.• Stockwell Elastomerics, Inc.

Silver Achievement Winners (no OSHA recordable occupational injuries or illnesses involving lost workdays or restricted work activity during 2016):

• LMI Custom Mixing, LLC•HEXPOL Compounding (Burton Facility)

Honorable Mention:•Blair Rubber Company (lowest rate of incidents based

on size, less than 100 employees)•Wabtec Rubber Products, Longwood Brenham (lowest

rate of incidents based on size, 101 to 350 employees)

Save the Date: ARPM Plant TourARPM will host its first plant tour of 2018 at Zinc Oxide LLC in Dickson, Tennessee, near Nashville. The event will take place March 29 and 30, 2018. Zinc Oxide LLC is North America’s newest manufacturer of zinc oxide. In fact, its ISO9001:2008 certified plant is the first ZnO plant to come on line in North America in more than 20 years. Utilizing the French Process method, the company produces zinc oxide from high grade and special high grade zinc metal, as well as from recycled zinc. Its state-of-the-art muffle furnaces are designed for high efficiency and consistent output. More information on this plant tour event will be posted at www.arpminc.com.

UPS and FedEx Take Different Approaches to Peak Holiday VolumeUPS announced that it will add a 27-cent charge on all ground residential packages from November 19 through December 2, and then again from December 17 through December 23, 2017. Air packages and packages that qualify as large or over maximum limits also will see an increase. In a notable departure from UPS, FedEx will not follow suit. Instead, the only holiday surcharge added by FedEx is for packages that are big or bulky enough to require special handling. ARPM members receive exclusive discounts on select FedEx® services through the ARPM Shipping Program. For more information and to enroll, visit PartnerShip.com/ARPM. n

October 11-13, 2017BENCHMARKING & BEST

PRACTICES CONFERENCE

November 3, 2017HR PEER NETWORKING

CALL

November 3, 2017SENIOR LEADERS PEER

NETWORKING CALL

October 3, 2017 SIGMASOFT WEBINAR

March 29, 2018 ZINC OXIDE LLC PLANT

TOUR

July 18-19, 2018EHS SUMMIT

For the most up-to-date information on these and other

ARPM events, visit www.arpminc.com/event-calendar



Outlook

Training and skill enhancement are primary areas of concern for manufacturers throughout the US. A 2015 study1

by Deloitte and The Manufacturing Institute uncovered the following statistics:

• Over the next decade, nearly 3.5 million manufacturing jobs likely need to be filled, and the skills gap is expected to result in two million of those jobs going unfilled.

• 82 percent of executives responding to the skills gap survey indicate they believe the skills gap will impact their ability to meet customer demand, and 78 percent believe it will impact their ability to implement new technologies and increase productivity.

• 94 percent agree internal employee training and development programs are among the most effective skilled production workforce development strategies.

The Association for Rubber Products Manufacturers (ARPM) offers a video training library to its members and tests those completing the training to ensure an adequate level of understanding. One ARPM member has found the program to be valuable not only in training its people, but also in meeting certification requirements for an automotive industry standard.

ARPM offers online training program to membersTo assist its member companies with their training processes, ARPM makes available a series of rubber working training videos through its website. Member companies can offer these videos to their employees and, upon completion with a grade of 78 percent or higher, the employees will receive a certificate of completion from ARPM.

Training Certification Assists with ISO RequirementsBy Dianna Brodine, managing editor, InsideRubber

“The most critical issue faced by the manufacturing community is the lack of a skilled workforce,” said Letha Keslar, ARPM man-aging director. “We understand the importance of having knowl-edgeable staff and well-educated personnel throughout the entire business. At the same time, ARPM also recognizes the difficulty in having employees travel out of the plant to participate in effec-tive training courses, plus the need to train employees on differ-ent shifts. The online program helps our members by providing onsite training that can be used at any time, on any shift.”

The training program covers four areas: injection molding, material mixing, compression/transfer molding and extrusion. Each area includes video training related to the technology, safety, materials, operator tasks and quality.

Once a training video has been viewed and the module is completed, a module quiz can be taken online. A passing grade generates an electronic certificate of completion.

“ARPM offers four training modules on the fundamentals of rubber manufacturing free to its members,” explained F. Joseph Walker, global technology director, materials and laboratory services for Freudenberg-NOK Sealing Technologies and chairman of the ARPM Seals and Gaskets Committee. “ARPM is the only organization to offer this valuable training, and it’s been a help to our organization in more ways than one.”

Training helps Freudenberg-NOK meet ISO and IATF standardsFreudenberg-NOK Sealing Technologies, Plymouth, Michigan, is a global sealing manufacturer and service partner for customers in market segments such as automotive, aerospace, fluid power,


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energy, marine, mining, food and beverage, pharmaceuticals and mobile machinery. Freudenberg-NOK runs the business operations for Freudenberg Sealing Technologies in the Americas. As a result of its involvement with the automotive industry, Freudenberg-NOK is IATF 16969:2016 certified, an international standard for the automotive industry relating to quality management systems. The certification is designed to be utilized in conjunction with ISO 9001:2015.

While completing the program requirements, Walker realized the ARPM certification could be used as an ISO-approved prerequisite for the certification program.

“It occurred to me that the new IATF 16969 standards – and the ISO/TS 16949 standards before this – are all about the qualifi-cations of the people who are generating lab data and running tests,” explained Walker. “We have been able to use the ARPM training to help comply with the requirements of IATF 16949. This is a very tough standard, and the ARPM training helps us meet its requirements in terms of technician qualifications.”

Master Rubber Certification Program in developmentNot only does the online ARPM training program provide in-house training for technicians and help to meet certification requirements, it also offers reassurance to customers that those working to complete their projects are qualified and up-to-date. Walker hopes to take the training program a step further to enhance that perception.

Walker continued, “When you go into an automotive dealership waiting room and see all of the employee certificates for training in areas like brake systems, electrical systems and transmissions, it’s significant to the customer. I want to establish the same thing in the rubber industry.”

Walker hopes to conduct a master technician pilot program at Freudenberg-NOK. The intention is for all the laboratory technicians at the company’s central laboratory in Plymouth to go through the ARPM training as part of a master rubber technician certification process. “Each module takes approximately three hours to complete, so these individuals will be dedicating at least 12 hours of total training to this process,” he explained. “We are working with our human resources organization on compensation details as an additional incentive.”

The training and certification processes are key to overall quality at Freudenberg-NOK. “Our technicians are our first line when it comes to developing and analyzing the materials that we make long-term decisions about as a company,” said Walker. “This master technician program is a way of showing that we embrace the need to have qualified people working for us who understand the fundamentals of rubber technology.” n

References:1. The Skills Gap in US Manufacturing: 2015 and Beyond, 2015

Deloitte Development LLC, http://www.themanufacturinginstitute.org/~/media/827DBC76533942679A15EF7067A704CD.ashx


Review

More than 84 industry professionals came together in July to attend the 2017 ARPM EHS Summit, held in Columbus,

Ohio. “The purpose of this event is to provide manufacturing professionals with an environment to become better educated about best practices and leading performance benchmarks relative to the EHS arena,” stated Letha Keslar, ARPM managing director.

After welcoming the crowd, Troy Nix, ARPM executive director, shared the stage with EHS Summit’s keynote speaker Fred Rine, CEO and Founder of FDRsafety. Rine’s kick-off presentation, Attitude-Based Safety Culture, hit home with attendees by addressing the “why” and “how” of leading employees to want to be safe.

The event also headlined sessions emphasizing the needs of ARPM members, which included the new OSHA revisions, drugs in the workplace, rule changes under the new administration, OSHA inspectors, air permitting, enforcement of GHS and highlights of the new ANSI Z244.1 (Lockout/Tag Out). Matt Morehouse of Marsh Bellofram said, “This year and last year are far and away the most useful summits/conferences that I have ever attended. The networking and content of speakers is vastly superior to most events such as this.”

The second day began with the ever-popular roundtable discussions, with peers discussing the most pressing EHS topics as a way for professionals to find new ideas, expand their networks and explore new methods of improvement.

During one of the networking breaks, members circled up and began discussing a current challenge – meeting one of OSHA’s fall protection rules. As luck would have it, an EHS committee member and lifelong EHS professional, Joe Clark, was a part of this group and proceeded to share a newly implemented solution

EHS Summit Reinforces Safety Culture for AttendeesBy Susan Denzio, director of publications, ARPM

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his company had adopted. The entire room was laser-focused on his story.

Steve Hamilton of Extreme Tool & Engineering explained, “The size of your plant, company or operation cannot be your hindrance for attending. As an 80-person shop, I discovered from the very first speaker the power of the well-spoken, highly-experienced, safety professionals slated for the two-day summit. The speakers were profoundly motivating, professional, fun and above all, provided me with paradigm-shifting perspectives to re-launch our safety program.”

The distribution of ARPM’s Safety Awards was a great climax to the event. The prestigious safety awards program is a way to recognize safety in the industry and reward facilities that have achieved a level of safety performance above the industry average. Awards are based on data reported on a company’s annual OSHA 300 Lot of Work-Related Injuries and Illnesses report. These awards provide ARPM safety teams an opportunity to strive to be better.

Cody Knauss, head of production and safety for Legg Co., Inc., said, “It is a testament to the tremendous work ethic and dedication to safe habits of general manager John Blankenship, head of production and safety Cody Knauss, the entire Halstead management, staff and workers and their attention to safety awareness and accident prevention through behavior-based safety audits.” Legg Co., Inc., is a member of Continental ContiTech. A full list of award winners can be found on page 16.

The 2018 Annual ARPM EHS Summit is slated for July 18 and 19 in Columbus, Ohio. n



Industry

4JET Develops High-Contrast Engraving Solution4JET Technologies GmbH, Alsdorf, Germany, has developed SCANNECT™. Originally developed for the tire industry, this solution individually engraves technical rubber goods with a unique and permanent QR code that can be identified with industrial cameras and a smartphone app. The SCANNECT™ solution – short for “scan and connect” – allows products to be traced through their life cycle. Compared to conventional laser marking, which only leaves a low contrast mark on the usually black rubber surface, the SCANNECT™ process creates a deep black marking on the bottom of the engraving, providing enough contrast to be read with cameras in mobile devices. The process – composed of special optics, laser parameters and control software integrated in 4JET´s standard marking systems – now is commercially available. For more information, visit www.4jet.de.

PTS Partners with TrinseoPolymer Technology & Services, LLC (PTS), announced a new partnership between PTS and Trinseo, a global chemical materials solutions provider and a manufacturer of plastics, latex binders and synthetic rubber. Trinseo will be a distribution partner for PTS in the US, Mexico, Canada, China and Taiwan. Meanwhile, PTS will serve as a distributor for core Trinseo brands, such as EMERGE™ advanced resins, PULSE™ PC/ABS resins, CALIBRE™ MEGARAD polycarbonate resins and MAGNUM™ ABS resins. Trinseo offers a full line of flame-retardant materials in key market segments such as consumer, electrical and medical. For more information, visit www.trinseo.com or www.ptsllc.com.

Smithers Rapra Expands Raveena Test CenterIndependent, third-party laboratory Smithers Rapra broke ground on an expansion at the Smithers Tire and Wheel Test Center in Ravenna, Ohio. Six of the top global tire manufacturers – including Bridgestone Americas, Continental Tire, Cooper Tire & Rubber, Goodyear Tire & Rubber, Hankook Tire and Michelin North America – partnered with Smithers to introduce a new MTS Flat-Trac® CT Plus tire test system. The new system

requires a building expansion at the Ravenna laboratory, as well as the addition of several technical roles to support the partnership. The new tire testing system provides higher wheel torque, as well as increased longitudinal and lateral load limits, allowing for the testing of most passenger car and light truck tires on the market today. Expansion at the Ravenna laboratory is expected to be completed by July 2018. For more information, visit www.smithersrapra.com.

ASTM International Honors Mohan Kosamia Mohan Kosamia, manager of Technical/R&D Services at Church & Dwight Co., Inc., South Chesterfield, Virginia, has received the D11 Distinguished Service Award from ASTM International’s committee on Rubber and Rubber-Like Materials. The committee recognized Kosamia for his dedication and service to the development and maintenance of international standards for the rubber industry. An ASTM member since 1980, he also received the Award of Achievement from committee D11 in 2007. For more information, visit www.astm.org.

AGC Chemicals Unveils AFLAS® 600X Fluoroelastomer AGC Chemicals Americas, Inc., Exton, Pennsylvania, introduced its AFLAS® 600X fluoroelastomer grade. AFLAS 600X is a tetrafluoroethylene propylene (FEPM) material that offers performance and processing advantages over BRE, FKMs and other AFLAS grades, making it ideal for molded products such as durable packers, bladders, gaskets and O-rings. Products made of AFLAS 600X last longer in the wet, high-pressure, amine- and base-rich environments of oil and gas recovery, and they do not deteriorate under prolonged exposure at 230°C. In addition, the parts exhibit electrical and thermal resistance. AFLAS 600X also exhibits processing advantages over conventional FKMs and other AFLAS grades, including superior mold release, higher cross-linking ability, superior hot tear strength and compression set and a faster cure speed. AFLAS 600X does not require specific peroxides and is a white polymer material that can be colored. For more information, visit www.agcchem.com.

HEXPOL Makes Multiple UpdatesHEXPOL, Malmö, Sweden, announced the acquisition of two businesses and the appointment of a new president and CEO. Mikael Fryklund has been appointed president and CEO for HEXPOL AB. Additionally, the company signed an agreement with Valley Processing to acquire the business. Valley Processing broadens HEXPOL’s presence and strengthens its portfolio, especially in the Western and Southeastern regions of the US. Valley Processing’s manufacturing facility in Virginia is not included in the transaction. HEXPOL also acquired 100 percent of Trelleborg Material & Mixing, Lesina, Czech Republic,

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Industry

from the Trelleborg Group. The acquisition is a complement to HEXPOL Compounding in Europe and broadens its presence with rubber compounds in the central European market. Trelleborg’s Rubber Compounding unit expands HEXPOL’s capacities to serve customers efficiently. For more information, visit www.hexpol.com.

Ace Products & Consulting Updates LabAce Products & Consulting, Akron, Ohio, recently made updates to its lab, located near Terminal Warehouse. The company added Fourier Transform Infrared Spectroscopy (FTIR analysis) to its lab after reviewing its recent lab services survey that indicated a need for basic analytical services. This analytical technique is used to identify organic, polymeric and, in some cases, inorganic materials. The FTIR method uses infrared light to scan test samples and observe chemical properties. For more information, visit www.aceprodcon.com.

Ice Miller Opens New Office, Named as a Best Law Firm for WomenIce Miller, headquartered in Indianapolis, Indiana, was named among the 2017 “Best Law Firms for Women” by Working Mother, which recognized the law firm for its family-friendly policies and career and business development initiatives that help retain women attorneys and advance them into the leadership pipeline. Female partners serve in a range of leadership roles, including in governance and as practice group leaders, members of internal key committees and mentors for associates. Of the firm’s 12 practice groups, 50 percent are chaired or co-chaired by women partners, and women partners represent 35 percent of the firm’s committee chairs. Additionally, 32 percent of Ice Miller’s attorneys are female. The firm is proud of its Gold Standard Certification by the Women in Law Empowerment Forum. Additionally, the eighth Ice Miller office opened in Philadelphia, Pennsylvania. Frederick Tecce joined the firm as the Philadelphia office managing partner and will lead the IP practice in that office. Tecce is joined by partner Aaron Ettelman and of counsel Bryon Wasserman. Ettelman’s practice focuses on all aspects of IP rights, whereas Wasserman is an IP attorney experienced in litigating patent actions before federal district courts, the International Trade Commission and the US Patent and Trademark Office. For more information, visit www.icemiller.com.

ARDL Reveals Company Personnel UpdatesAkron Rubber Development Laboratory, Inc. (ARDL), Akron, Ohio, announced President Jerry Leyden has retired, effective June 2, 2017. During his 25 years with ARDL, Leyden contributed to the company’s advancement as an independent testing and development laboratory for the rubber and plastic

industries. He will continue his relationship with the company in the capacity of President Emeritus. A successor was found internally, and the company announced Bonnie Stuck’s promotion to the position of president. She joined ARDL in January 2009, bringing with her decades of experience across broad sectors of the rubber and plastics industries. Additionally, ARDL team members Ted Nelson and Ana Barbur will assume new roles within a redefined corporate structure. Nelson will fill the newly created position of vice president, compounding/physical testing services and will oversee the physical testing, plastics testing, compounding services and adhesives departments. Likewise, Barbur has been promoted to the position of vice president, chemical/analytical services. Under the new structure, she also will be responsible for microscopy services at ARDL. For more information, visit www.ardl.com.

Mueller Prost Ranks Among the Inc. 5000Inc. magazine ranked Mueller Prost CPAs + Business Advisors, St. Louis, Missouri, number 4737 on its 36th annual Inc. 5000, an exclusive ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment – its independent small and midsized businesses. For the past several years, Mueller Prost has experienced significant growth, both organically and through strategic partnerships. For more information, visit www.inc.com/inc5000.

Custom Rubber Adds Website ContentCustom Rubber Corp., Cleveland, Ohio, added more content to its website regarding the design and manufacture of molded round gaskets and molded round seals. The new information

includes descriptions of the three types of manufacturing processes available to make round gaskets and seals, as well as three design variables to be considered when

developing a round molded gasket or round molded seal. For more information, visit www.customrubbercorp.com. n

SPECIAL THANKS TO OUR EHS SUMMIT SPONSORS


SPECIAL THANKS TO OUR EHS SUMMIT SPONSORS


Benchmarking

For the past several years, rubber companies have reported that developing their workforce and managing health and benefits

costs are two of the main challenges their leadership teams have been working to tackle. Interestingly, the two go hand-in-hand. A recent report by Column Five, a nationally recognized communications agency, indicated 85 percent of job seekers note that benefits offered by a company are moderately to very important when deciding to apply for or accept a position.

According to a recent study completed by the Association for Rubber Products Manufacturers (ARPM), organizations across the United States are feeling the strain because of the increased pressure and costs of offering alluring benefits. Larger companies – those with greater than $50 million in annual sales – are more likely to offer additional benefits, lower co-pays or deductibles and added job perks. This leaves many smaller manufacturers feeling the pressure to compete. Unfortunately for manufacturers of all sizes, the cost of offering benefits continues to rise.

When tracking the annual percentage increase in health insurance premiums, rubber product manufacturing companies reporting less than $50 million in annual sales were the most likely to indicate they received insurance plan increases of more than 10 percent. Based on geography, companies located in the southern US were the most likely (34 percent) to report increases of greater than 10 percent, while only 15 percent of those in the Midwest reported similar increases.

Compared to previous years, a higher percentage of rubber companies are providing health coverage to their employees, with 95 percent of participating companies reporting they provide insurance. Beyond basic health coverage,

companies have felt pressured to provide additional benefits, including prescription drug coverage, vision and dental care.

Ancillary benefits, such as dental and vision, have become a necessity for companies seeking to be employers of choice. The percentage of rubber companies offering dental insurance was reported at 94 percent in this year’s study, and 76 percent of participating companies indicated they provide vision insurance.

Rising Costs and Pressure Associated with Employee BenefitsBy Ashley Turrell, industry benchmarking manager, ARPM

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Ninety-eight percent of rubber products manufacturers indicated their company offers a retirement plan, and 85 percent offer a 401(k) through the company. According to the data, smaller companies are more likely to have longer eligibility waiting periods than larger companies; however, they tend to have shorter vesting schedules.

Companies with less than $15 million in annual sales typically have vesting schedules of four years or less, while those with greater than $15 million in sales commonly offer vesting schedules of at least five years. Companies with more than $15 million in annual sales also are more likely to offer profit sharing and simple pensions than other processing facilities.

Other additional benefits and employee perks – such as employee assistance programs, prenatal programs and tuition reimbursement – are becoming more popular with manufacturers of all sizes; however, the largest companies still are more likely to offer these benefits. Smaller companies are more likely to offer flexible spending accounts, wellness programs and clothing and safety eye wear credits than many larger companies.

Regardless of current offerings and healthcare reform efforts, it is clear that offering better, unique or additional benefits is a trend

on the rise. Companies of all sizes across the country may need to focus on improving their benefits package to attract qualified employees as the talent pool continues to shrink. n

For more information and to purchase the report, visit www.arpminc.org.

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401K Simple IRA Profit Sharing Not Applicable

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Strategies

An Ounce of Information Security or a Bitcoin of Cure: Protecting Your Company from RansomwareBy Sid Bose, Ice Miller

In early May 2017, a global ransomware attack occurred using a ransomware known as WannaCry. By some estimates,

it impacted close to 250,000 computers in as many as 150 countries. Since then, a ransomware variant called Petya has emerged and also is responsible for affecting computers across the globe.

Ransomware is a type of cyber-extortion malware “that infects a computer and restricts a user’s access to the infected computer.” The malware is used to extort money from victims by indicating

the victim’s computer has been locked or access to files has been denied and demanding a ransom is paid to restore access.

Ransom demands typically range between $100 and $300 and are sometimes demanded in virtual currency, such as Bitcoin. The Federal Bureau of Investigation (FBI) and some industry analysts estimate that malicious actors can profit almost $33,600 per day, or $394,400 per month, using ransomware. The increasing profitability of ransomware has contributed to its proliferation. In 2016 alone, the FBI’s Internet Crime Complaint Center received


2,673 complaints identified as ransomware, with losses of more than $2.4 million.

The latest proliferation of ransomware has affected mostly Microsoft Windows-based devices. This is because WannaCry and Petya both use an exploit, known as “Eternal Blue,” developed by the US National Security Agency (NSA) and subsequently stolen and released to the public. Eternal Blue targets a vulnerability in Microsoft’s Windows Operating System and allows ransomware, like WannaCry and Petya, to infect devices.

Prevention protocolsAgainst ransomware, prevention is the best defense. To that end, companies should implement strong technical, procedural and administrative controls that leverage people, processes and technologies. The US government, for example, recommends the following strategies.

Training and awareness: Companies should consider a training and awareness program around common ransomware lures. For example, phishing emails often are the source of ransomware incidents. Training employees to identify and report phishing emails can be beneficial at closing off an avenue of entry for the ransomware. Larger companies should consider role-based training. Role-based training identifies and teaches relevant and needed knowledge, skills and competencies, based on the role of the individual within the company. For example, attackers are known to use sophisticated phishing campaigns specifically targeting executives and C-suite personnel who may have access to highly sensitive company information. Providing such personnel with role-relevant training that includes information about how to identify targeted phishing campaigns can help further minimize risk.

Scan and block emails: Companies should implement technical email filters that prevent malicious email from reaching users. Incoming and outgoing emails should be reviewed to detect potentially malicious traffic and prevent the transmission of potential ransomware.

Patching: If there is one good lesson to be learned from the WannaCry and Petya outbreaks, it is this: continuously patch. Patches are software updates issued by vendors. In the WannaCry and Petya outbreaks, Microsoft issued a patch that would have closed the Eternal Blue vulnerability in the Windows Operating System, and thereby, prevented the proliferation of the ransomware. However, many companies had a poor patching program that left them vulnerable – a sickening reality for those companies given the realization that a simple software update could have prevented the infection.

Block traffic: Ransomware can sometimes originate from known malicious sources. Blocking all traffic to and from these malicious sources can be pivotal in preventing ransomware

attacks. Additionally, certain strains of ransomware operate in a very specific manner that requires use of very specific protocols. By blocking such traffic, infection and the potential effectiveness of the ransomware may be curtailed.

Threat intelligence. Threat intelligence is the use of information from various (security) sources to better understand impending or proliferating threats to help prevent such attacks. Larger companies should consider implementing a threat intelligence program. Such a program can inform the company and help shape a company’s activities in preventing ransomware incidents. For example, threat intelligence may indicate a strain of ransomware that spreads via mobile devices; companies then can enhance monitoring around its mobile devices or limit such mobile-device usage until the threat has been mitigated.

Backups: An often-overlooked aspect of IT operations, routine data backups play a critical role in recovery from ransomware incidents. When companies implement a robust backup and recovery scheme, the impact of a ransomware event may be mitigated. For example, instead of paying the ransom or having to recreate data, data can be recovered from the backup. It should be noted many companies may think they have an established backup process but fail to verify the integrity and viability of those backups, and more importantly, fail to test the restoration process to ensure recovery from backups is feasible.

Ransomware response planWhile prevention is easier said than done, many companies are still likely to experience a ransomware incident. In those cases, companies should have an incident response plan in place that can mitigate the effects of ransomware. For example, companies should consider the following actions.

Engaging legal counsel: One of the first actions any company should take is to engage legal counsel familiar with responding to ransomware incidents. Engaging legal counsel early will allow companies to fully understand any legal and regulatory issues that may arise and possibly ensure attorney-client privilege around subsequent activities.

Isolating systems: Ransomware infections can start with just one computer and spread to other computers in an organization.

An often-overlooked aspect of IT operations, routine data backups play a critical role in recovery from ransomware incidents.



Strategies

Isolating an infected system (for example, by taking it off the network) can prevent the transmission of ransomware to other computers. In some situations, simply powering down a device may be effective as well. However, some security experts note powering down a device may lead to the loss of crucial forensic data that may be valuable in an incident analysis.

Changing passwords: Some ransomware variants are known to capture credentials (e.g. user ID and password). Companies hit with ransomware should change all passwords after isolating the infected system or after having recovered from an incident.

Implementing a response plan: Implementing an incident response plan often is the normal course of action in a ransomware incident. Companies should have an incident response plan in place that is operational and has been tested. A smooth and operationally viable incident response plan can minimize the confusion arising from, and the potential adverse impacts of, a ransomware incident.

Engaging law enforcement: Law enforcement can be an excellent resource when responding to ransomware incidents. The FBI, for example, has specialized expertise and can provide legal authority and tools that are otherwise unavailable to companies. Law enforcement can be invaluable in successfully


mitigating a ransomware incident and should be considered. Companies, however, should also consider speaking with legal counsel first to understand the potential implications of engaging law enforcement.

Engaging forensic experts: As an alternative to (or even in connection with) engaging law enforcement, companies can engage cybersecurity firms to perform computer forensics. Cybersecurity firms may be able to assist companies in finding the root cause or the source of the incident and, in some cases, perhaps even a solution to recover from the incident without paying a ransom (e.g. by using a decryption key).

The biggest question from companies in the throes of a ransomware incident is whether to pay the ransom. Most law enforcement entities do not encourage the payment of the ransom, and rightfully so. Paying a ransom does not guarantee the recovery of data and, in some cases, may embolden attackers to repeatedly target the company, knowing the company is likely susceptible to paying. In other cases, some companies pay the ransom only to find the malicious actors request additional money. And finally, paying the ransom only incentivizes such activity.

That said, the principled philosophy of “never negotiate with terrorists” sometimes has to yield to pragmatic concessions. Some companies may find themselves in the direst of circumstances – their backups have failed, their expected data loss is insurmountable or the impact to their business is too large. In such situations, a company’s last resort may indeed be to pay the ransom. Paying the ransom may become a business necessity and must be evaluated on a case-by-case basis, taking into consideration the risks inherent to such action.

The threat of ransomware continues to evolve and proliferate. Companies should be ready with preventive measures that can save them from being victimized. In addition to preventive measures, companies also should be ready to tackle a ransomware incident. Done correctly, being prepared can be just as effective as preventing a ransomware attack. n

Ice Miller’s Data Security & Privacy practice helps educate and train clients on data security best practices to address and mitigate risks. Sid Bose is a former IT systems engineer and counsels clients on various data security and privacy issues dealing with regulatory compliance, online privacy, vendor contracts and agreements, IT audit and compliance, data breaches, disaster recovery and business continuity planning. Bose can be reached at [email protected], or 317.236.2243.

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Focus

OSHA Under Trump: The Waiting is the Hardest PartBy Rob Medlock, Safety Controls Technology (SCT)

Just like Tom Petty sang it, “Waiting is the hardest part.” The Occupational Safety and Health Administration (OSHA) is

waiting to see what’s going to happen while trying to maintain status quo. Many inside are afraid the hammer will drop.

As President Trump has yet to name a new OSHA leader, it’s difficult to predict exactly how the administration will operate during the next few years. I’ve been through seven presidential administrations, and it normally takes a couple of years before you see much of the current philosophy come to the forefront.

The OSH Act was enacted in 1970 “To assure safe and healthful working conditions for working men and women; by authorizing enforcement of the standards developed under the Act; by assisting and encouraging the States in their efforts to assure safe and healthful working conditions; by providing for research, information, education, and training in the field of occupational safety and health; and for other purposes,” according to OSHA.gov.

It is focused on enforcement and will always be the bible by which OSHA is guided. Even the most politically conservative folks like to see punishment for bad actors that are truly abusing workers.

But, a few actions by OSHA in recent months may provide a preview of things to come.

Potential changes under the new administrationIn June, OSHA asked for public input and suggestions to strengthen Voluntary Protection Programs (VPP). For those who don’t know, VPPs are a collaborative effort between management, labor and OSHA that commits to successful implementation of a comprehensive safety and health management system. They have been popular during previous Republican and some Democratic administrations.

VPPs are the pinnacle of voluntary compliance and have a positive impact on entire industries, but they also put a lot of strain on OSHA’s resources. With pending budget cuts – and, possibly more on the way – OSHA could be stretched thinner than ever. OSHA needs to develop new ways to utilize outside consultants to strengthen the VPP program, while at the same time minimizing the stress on OSHA staffing levels.

OSHA also has taken the following actions:

• delayed the enforcement of the beryllium, electronic recordkeeping, and silica standards to Sept. 23, 2017 – although state plan administrations have the option to further delay enforcement; and

• eliminated the Fair Pay and Safe Workplaces rule, commonly known as the Blacklisting Rule, which had been enacted by President Obama in 2014 to ensure federal contractors were in compliance with labor laws.

Based on these past few months, it’s not a stretch to think that OSHA may swing back and create fewer compliance rules for employers to follow. Still, I have had several employers ask me for assistance because of continued stiff OSHA fines since Trump has been in office, which indicates existing rules are still being enforced.

Many anticipate there will be more compliance assistance and less enforcement, although we have not seen much of that yet. The fact that an assistant secretary has not been appointed is a sign that OSHA is not a huge priority.

During the Obama Administration, OSHA found great success with strong enforcement and harsh penalties. It will be tough to swing the operational managers and directors 180 degrees in a short time frame. Don’t look for things to change right away, but look for some major enforcement cuts in 2018 and beyond. n

Rob Medlock is senior vice president of SCT. Medlock studied at Indiana State University, where he received his bachelor’s degree in safety management. He served with OSHA throughout his career, leading his office in conducting more than 17,000 inspections and implementing several OSHA Emphasis Programs until his retirement in 2011. With more than 33 years of experience as an OSHA employee and 20 years as the Cleveland OSHA Area Director, Medlock is a proven expert in the field of occupational safety. At SCT, Medlock is responsible for directing and supervising a staff of professionals to provide high-level occupational safety and health expert witness services. For more information, visit www.sct.us.com.


Management

Gulp. The time has come to communicate a major change for your organization. Maybe it is a restructuring or a switch to

total quality management. The change is so important the future of the company depends on it.

Employees are mustered together, and the CEO makes an impassioned speech worthy of a field marshal. Following the call to arms, the communications campaign launches an offensive on several fronts. All locations are bombarded with videos. Special editions of the employee newsletter sound the battle cry. Platoons of senior executives fan out to deliver the message on a more personalized basis to the troops.

But, the war is already lost. Why? Because this approach is wrong, wrong, wrong. Not only will it fall flat, it is positively harmful.

Ask employees what information source they prefer. According to a study by the International Association of Business Communications, nine out of 10 employees said they want to hear it directly from their supervisor. The mistake that dooms most campaigns seeking to win support for new business goals is the failure to let the right person explain the change to front-line employees.

To achieve optimal results, campaigns to communicate potentially unpopular changes to employees should be viewed as an applied science. Unfortunately, this does not happen at most large companies. Case studies, surveys and research clearly show that the best practices for a major change are to communicate directly to supervisors and to use face-to-face communication, which includes storytelling.

The rate of major change is accelerating rapidly in business today, and many executives will be called upon to make change communications decisions as part of a senior executive team. Knowing the four biggest mistakes of change communication will increase their chances of success.

Mistake 1: Many well-meaning CEOs attempt to improve change communications by going the direct route.These CEOs naturally want to talk directly to the front-line employees, usually supported by the advice of senior human resources executives and consultants. Unfortunately, it is a mistake that is wrong for two reasons.

First, it can be viewed as a mere symbolic move, and today’s disillusioned worker has little love for the empty gesture. Second, and more damaging, these campaigns can weaken the relationship between front-line workers and supervisors. Workers want to work for someone who is connected and has a degree of power within the organization. They want to know their supervisor has some pull.

Mistake 2: Other well-intentioned senior executives push for equality in the workplace. They believe supervisors should sit shoulder-to-shoulder with front-line employees to hear the big news.

Again, a mistaken strategy because it is evidence of senior management’s failure to recognize the supervisor’s superior status. This reduces the supervisor’s perceived power and weakens his or her effectiveness as a force of change. What many senior executives fail to realize is that the only communications with the power to change behavior is the kind between a supervisor and a direct report.

Mistake 3: Applying the strategy that more must be better, executives in charge of change campaigns use ink by the barrel. They think the solution is more employee reports, posters, news bulletins, video scripts, team briefing outlines, brochures and guidebooks. This, too, is the wrong approach, because the critical communication is the type that happens face-to-face between a supervisor and front-line employees.

Energy and resources should be directed toward producing supervisor briefing cards which will arm them to answer the key questions that are in the minds of their staff.

Mistakes to Avoid When Communicating ChangeBy Henry DeVries, CEO, Indie Books International


Mistake 4: Not giving supervisors a persuasive story to tell can be a tactical error. Storytelling helps persuade on an emotional level. Stories are the building blocks of company culture.

If there is already a true story to tell about how the change will benefit the company, so much the better. If not, at least give supervisors a narrative to tell about how success can be achieved in the future. Every story starts with the name of a character who wants something. Make the main character likable or the victim of undeserved misfortune so the listeners will root for them. To make them likable, describe some of their good qualities or attributes.

Heroes need help on their journey. They need to work with a wise person. This is where the company leadership comes in. Be the voice of wisdom and experience. The hero does not succeed alone; the hero succeeds because of the help provided by the company.

Finally, give the listeners the moral of the story. Take a cue from Aesop, the man who gave us fables like The Tortoise and the Hare. (The moral: slow and steady wins the race.) Don’t count on the listeners to get the message. The storyteller’s final job is to tell them what the story means.

The bottom line on communicating changeWhile other forms of communications should not be abolished, the emphasis should be on making supervisors privileged receivers of information. The strategy is to empower the supervisors.

When the future of the firm is on the line, it’s ultimately the CEO’s job to make sure change is communicated in the best way possible. After the employees get the skinny from the supervisors, then the CEO can talk to all to reinforce the message.

The wise CEOs will use their supervisors – and properly arm them – to ensure success. n

Henry DeVries, CEO of Indie Books International, teaches sales and business development professionals how to build an inventory of persuasive stories. He is the author of “Marketing with a Book” and “Persuade with a Story!” For more information, visit www.indiebooksintl.com

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For more information on these and other ChemSpec products, call or visit us online.

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Process Aids, Oils & LubricantsDithiocarbamate & Commodity AcceleratorsSilane Coupling AgentsCuring & Co-AgentsPlasticizersMetal Oxides/HydroxidesSpecialty PolymersBlowing AgentsStearatesPolyethylene & Paraffin WaxPolyethylene GlycolFunctional FillersRubber-to-Metal Bonding Adhesives

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