sustainability

Article Autumn Hines

As we move into 2025, the manufacturing industry faces a rapidly evolving landscape shaped by technological advancements, workforce challenges, and economic pressures. Businesses that proactively address these risks while capitalizing on emerging opportunities will be better positioned for long-term success. From strengthening supply chains to navigating AI integration and sustainability initiatives, manufacturers must stay agile and forward-thinking to remain competitive.

RiskDescription
Smart Supply Chains– Create more connected supply chains through digitizing that help overcome global geopolitical issues and global pandemics. 
– Digitization will be essential as it will allow companies to diversify where they source and make their goods. 
– Growing emphasis on supply chain visibility and resilience over pure efficiency. 
– The combination of smart technologies, automated systems, and sustainable practices creates opportunities for innovation.
Talent Competition and Adaptability of the Workforce – Manufacturers should focus on retention by concentrating on long-term strategies that support employee development and allow their workforce to adapt. 
– More emphasis placed on outsourcing. 
This will involve retraining and reskilling the current workforce 
– Immigration policy could significantly impact the manufacturing sector with the new administration in office. 
Cybersecurity– Cybersecurity assessments are a must to identify critical information and intellectual property that needs to be protected. 
– Data demands and growing connectivity will prompt the need for greater security. 
Artificial Intelligence (AI), Generative AI, and Smart Manufacturing  – Enhance predictive maintenance by optimizing supply chains, increasing productivity, and improving cost savings. 
Controls around AI, including ethics. 
– Investing in appropriate infrastructure that supports moving to data-driven operations and decision-making. 
– Businesses that become leaders in AI and have an “AI First” mentality will have the advantage. 
Sustainability and Environmental, Social & Governance (ESG)– Legislation has emphasized green/clean technologies (tax credits, grants, government financing). 
– Decarbonization will likely need to become a bigger priority for manufacturing companies. 
Economic Environment– Expect constraints on global finance and investment. 
– Will result in a high-cost environment in the near future. 
– Increase in tariffs  

While the manufacturing sector faces significant challenges in 2025, it also presents numerous opportunities for innovation and growth. Companies prioritizing digital transformation, workforce adaptability, cybersecurity, and sustainability will gain a competitive edge in an increasingly complex global market. By staying ahead of economic shifts and regulatory changes, manufacturers can build resilience and drive long-term success in the industry.

Article Dean Dorton

A focus on sustainability is changing all aspects of our world. What is your company doing to promote sustainability? How are you measuring the effectiveness of your sustainability program and ensuring accuracy in reporting? Have you made commitments to consumers regarding sustainability and are you transparent with reporting actions taken to follow through on those commitments?

As we’ve discussed before, many public and private companies have seen the need to implement Environmental, Social and Governance (ESG) programs. There is an increase in ESG activity including transparency about current impacts and plans for the future.

Here are some example recent stories:

  • University College Dublin is using Artificial Intelligence to validate companies’ environmental claims. Greenwashing means disingenuous claims of being environmentally friendly to outright falsehoods. The group places companies in one of several categories: green leaders, hidden green champions, green incrementalists or potential or probable greenwashers. The group’s results show a high likelihood of greenwashing in 95% of statements they analyzed.
  • Samsung to eliminate plastic from its smartphone packaging by 2025. Other goals include incorporating recycled material in all new smartphone products, achieve zero waste to landfill and reduce the standby power consumption of its smartphone chargers to below 0.005W when a device is fully charged.
  • Prague is building its first 3D printed playground which will feature recycled concrete. China has recently constructed a 3D retractable bridge. The Bluetooth-controlled bridge is comprised of 36 3D printed triangle panels. The Netherlands features the country’s first 3D printed stainless steel bridge.
  • Stanford creates new school for study of climate and sustainability which will open in the fall of 2022. The school will foster innovating new technologies to solve energy, climate and sustainability challenges.
  • The Big 3 pledge 40-50% Electric Vehicle sales by 2030. GM aspires to be fully electric by 2035.

While these examples of ESG are on the larger scale, even small and medium businesses can make impactful sustainability goals aligned and reported on through the ESG metrics.

To find out more about the metrics and how we can help you achieve ESG success, click the button below.

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Article Dean Dorton

First generation family foundations are founded on a gut-level need to give back. Founders are energized, motivated, and actively engage in the construction and inner workings of their vision. This direct participation generally leads to the launch of a very successful family foundation, one that makes a measurable difference in the greater world.

Many founders realize the importance of engaging the next generation but this focus is primarily and very rightly on the philanthropic impact of the family foundation. The mundane aspects of operations are downplayed or their transition is procrastinated. Without intent, successive family members are oftentimes left to navigate these and many other administrative essentials without a guide:

Board Meetings
Like all nonprofit organizations, family foundations must designate a governing board with officers. The board must hold meetings at least annually and whenever action requires a vote. States have varying rules regarding whether or not meetings must be held in person and your foundation’s bylaws should also address the format that constitutes a meeting. Minutes should be taken to document the occurrence and legitimacy of the meeting as well as any formal action that was approved by the board.

Tax-Exempt Registration
Most states require private family foundations to renew their exempt status within the state on an annual or bi-annual basis. This renewal may require the payment of a fee and/or the submission of a specific report. Failure to comply could jeopardize the favorable tax-exempt status of your foundation and its ability to continue philanthropic work.

Accounting & Tax Records
Maintaining the financial integrity of the foundation requires that gifts are acknowledged in writing using prescribed IRS wording, even if the gift is received from a member of the governing board. Documentation should also include the maintenance of accounting records and completion of annual tax filing. Payment of awarded grants should be properly issued and changes in investment activity appropriately recorded and reconciled.

Many family foundations choose to forego the employment of staff, so responsibility for these tasks fall by default to a member of the board. An alternative option to ensure best practice management and compliance is through collaboration with a subject matter expert. An experienced certified public accountant or legal professional focused on private family foundations could fill these gaps and free your family to focus on the impactful mission that motivated that first generation.

To learn how Dean Dorton could help your organization, click the link below:

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Kaydee Ruppert, CPA, MSA
Nonprofit Accounting and Financial Outsourcing Manager
kruppert@deandorton.com • 859.425.7730