Helping New York City

Manufacturing and

Technology Businesses

Start Up, Grow, and Thrive

ITAC REPORT, 2009 – 2010

Letter from ITAC’s President

February 2011

Dear Friends,

Our clients, small- and medium-sized New York City manufacturing andtechnology firms, are our #1 priority. By helping them to streamlineoperations using lean and green manufacturing processes and toolsand leveraging technology, ITAC enables them to maintain profitabilityand even grow while navigating this era of economic hardship.

As we enter the second decade of the 21st century, ITAC is helpingclients to seize the moment and grow into the opportunities of thefuture, creating more jobs for New Yorkers. With ITAC’s help, our clientscreated or retained 4,500 jobs and achieved $1 billion in sales, savings,and avoided investments over the last five years.*

This 2009 – 2010 Report presents a sampling of the highlights and suc-cesses New York City manufacturers and technology start-ups achievedduring those two difficult years with ITAC’s help. And, this is not a one-time accomplishment. For almost 25 years, New York City’s industrialbusinesses have benefited from ITAC’s consulting and training solutions.

As a Manufacturing Extension Partnership (MEP) Center, ITAC is part ofa national network — underwritten by the U.S. Department ofCommerce’s National Institute for Standards and Technology (NIST) — allowing us to draw on over 1,400 technical experts across the country.ITAC helps companies to start up faster, sustain profitability longer, andidentify opportunities for ongoing growth.

This economy demanded that businesses eliminate all excess cost andyet continue to deliver high quality products. ITAC helped businesses toprosper by creating customized solutions to meet these needs.

Technology is pivotal with those next generation companies that couldeasily founder in a down economy, but are essential to drive the coun-try’s economic acceleration and job creation. ITAC staff and programs(such as Kaufmann FastTrac®) and resource network (like theEntrepreneur-in-Residence and Manufacturer-In-Residence) ensuredthat these entrepreneurs received the guidance, technical resources,and access to financial sources critical to commercialization.

In project after project, ITAC’s Sustainable Business Program proved thatreducing a company’s environmental footprint makes that companymore competitive and improves its bottom line. It’s just smart business.

Like the businesses it serves, ITAC is changing to better serve its clientsand communities in the years ahead. By April 2011, ITAC will move to anew location: 39 Broadway, New York, NY. Designed to meet ITAC’sunique requirements, this work environment will foster collaborationcritical to serving clients well and be a hub for manufacturers and tech-nology firms to meet and learn from one another.

ITAC can only fulfill its goals with the generous support of its funders,resource network, partners, board of directors, friends, and community.Our entire staff is also directly responsible for ITAC’s success and abilityto create jobs for New Yorkers. Thank you, everyone, and let us contin-ue to work together.

Sincerely,

Sara P. Garretson

President, ITAC

4,500 jobs and$1.0 billion in impactin the last five years

In just the last two years(FY 2009 – 2010) ITACimpact includes:*

l $525 million in impact

l $271 million inincreased and retained sales

l $74.5 million inreduced costs

l $74.7 million innew investment

l 2,166 new and retained jobs

*As calculated using the New York State

Foundation for Science, Technology and

Innovation (NYSTAR) performance metric,

based on independent, third-party client sur-

vey data. NYSTAR designated ITAC the

Regional Technology Development Center

(RTDC) for New York City.

Manhattan 31%

Brooklyn 25%

Queens 23%

Staten Island/Other 8%

Bronx 13%

100+ 12%1 – 19 58%

50 – 99 9%

20 – 49 21%

Clients by borough

Clients by numberof employees

IDEA

GROWTH

START-UP INITIAL GROWTH MATURITY INNOVATION GROWTH

ITAC helps companies grow from start-up to maturity to innovation

The chart to the right illustrates two curves. From market introduction to

exit, business and product life cycles typically distribute along a standard

bell curve (red). ITAC aims to change the dynamics of this curve (blue).

The New York City businesses that ITAC serves are far from typical, and the

standard curve does not prove accurate for them. Most ITAC clients are

family-owned enterprises, and many have been in business for generations.

Each one began with a spark of an idea that led to commercialization success.

ITAC helps companies to maintain product presence and relevance through

faster start-up, rapid growth, quality improvement, lean manufacturing

adoption, new product development, green and sustainable practices,

market expansion, and technology innovation.

ITAC knows the effectiveness of its client work because six to twelve months

after project completion, an independent third party surveys the client and

captures quantifiable results: the number of jobs created or retained,

increased and/or retained sales, the total dollars saved through cost

reduction and investments avoided, and new investments made. ITAC’s

funding is contingent on delivery of financial results.

These pages highlight five ITAC clients, briefly tell their stories and challenges,

and describe how ITAC helped them to find a solution and move forward to

greater profitability, growth, and job creation.

Growing companies create jobs for New Yorkers

Standard business andproduct life cycle

ITAC clients’ business andproduct life cycles

SOLLEGA l

MAKERBOT l

DELICIAS ANDINAS l

SIGNS + DECAL CORP. l TRI COMPONENT PRODUCTS CORPORATION l

Sollega, llc(Brooklyn, NY). Founded: 2006Employees: 6

The Challenge: Sollega, llc, an en-ergy-technology company head-quartered at the New YorkUniversity ACRE Incubator, manu-factures a solar panel mountingsystem that saves time and laborand cuts installation costs. Madefrom recycled plastics, Sollega’sInstarack system is the ideal racking solution for commercialflat roof applications. Sollegawanted to investigate alternativematerial suppliers and ramp upproduct testing.

The Solution: Through its Entre-

preneur- and Manufacturer-in-

Residence, ITAC introduced

Sollega to manufacturers in New

York State and New York City who

could become part of Sollega’s

supply chain. Dalton Industries

Delicias Andinas FoodCorp.(Maspeth, NY). Founded: 1984Employees: 25 – 30

The Challenge: Delicias AndinasFood Corp.is a minor-ity-ownedcompanythat manu-facturesarepas(ethniccorn grid-dle cakes).During a four-year time frameITAC helped Delicias Andinas over-come various business challenges.The company now wants to expand its arepas product line and markets.

The Solution: Delicias Andinas re-tained ITAC (2009) to help withnew product development to in-crease its arepa offerings and at-tract a larger market, resulting infour new arepa varieties. Next,ITAC helped Delicias Andinas im-prove its recipe, tripling thearepas’s shelf life to supermarketrequirements and enabling place-ment in grocery stores. DeliciasAndinas then asked ITAC to help itbuild the capacity necessary tomeet the resulting increase in de-mand, including designing newmachinery to automate Delicias’snew manufacturing processes.

In total, Delicias Andinas reported19 jobs created or retained and$7.0 million impact.*

Tri ComponentProducts Corporation(Bronx, NY). Founded: 1967Employees: 75

The Challenge: Tri ComponentProducts Corpora-tion manufac-tures motortorqueand trans-mission parts. It is a leader in its field and exports products to over 25 countries.

Tri Component was struggling tomeet customer expectations, andits facility layout and productworkflow was inadequate to meet 10 – 15 percent annualgrowth projections.

The Solution: ITAC worked withTri Component to educate its staffabout the benefits of lean manu-facturing, conducting two work-shops — 5S (Sort, Straighten,Shine, Standardize, Sustain) andvalue stream mapping — thathelped to increase Tri Compo-nent’s efficiency by 65 percent and freed 25 percent ofthe manufacturing floor for other uses.

In total, Tri-Component reported33 jobs created or retained and$17.4 million in impact.*

Signs + Decal Corp.(Brooklyn, NY). Founded: 1972Employees: 22

The Challenge: Signs + DecalCorp., a certified minority-ownedbusiness, manufactures architec-tural signagefor com-mercial,institu-tional,andindustrialmarkets.Babu and Tazzim Khalfan, a husband and wife team whofounded the company, want totransition its management totheir four sons, and they soughtITAC’s help.

The Solution: In March 2010,Signs + Decal participated inITAC’s Family Business Advisorworkshop. Leveraging this jump-off point, Signs + Decal engagedITAC on a four-part project:Growth planning, operatingagreement, exit strategy, andsuccession planning. The clientreported three significant out-comes: Reached a unified visionof the company's future; gainedclarity about what needs to bedone to achieve their growth andsuccession goals; and improvedthe interactions and decision-making dynamics among thefamily members.

ITAC also helped Signs + Decalreconfigure the company’s ac-counting, administrative, and op-erations areas to improve cashflow, reduce costs, and stream-line procedures.

In total, Signs + Decals reported9 jobs created or retained andover $4.4 million in impact.*

(Bronx,

NY), a

metal

stamp-

ing

company,

is now

providing

a price quote, and Mercury Air-

craft (Corning, NY) now manufac-

tures many of the Instarack

system’s parts. ITAC also helped

Sollega to refine its business plan

and introduced the company to

seed-stage investors that pro-

vided significant capital for oper-

ations and expansion. In 2010

Sollega’s revenues were $750,000

— up from 0 in 2009 — and

are projected to reach $6 million

for 2011.

*As calculated using the New York State Foundation for Science, Technology and Innovation (NYSTAR)

performance metric, based on independent, third-party client survey data.This chart is for illustrative purposes only and does not represent quantitative information.

John Humphrey,President, ChiefTechnology Officer,Sollega

Bre Pettis,Chief Executive Officer,MakerBot

Manuel Miranda,President,Delicias Andinas

Norman Sobato,QualityControl Manager,Tri Component Products

The Khalfan family,Signs + Decal owners

MakerBotIndustries LLC(Brooklyn, NY). Founded: 2009Employees: 10

The Challenge: MakerBot Indus-tries LLC manufactures and dis-tributes open source 3-D printersthat fit on a desktop. MakerBotneeded to identify a local and en-hanced supply chain and to com-mercialize a newer version of its3-D printer.

The Solution: MakerBot workedwith ITAC’s Manufacturer-in-Resi-dence to accomplish these goals.By creating a parts list for thenew model, MakerBot could con-duct a search for suppliers for itsnext-generation 3-D printer.ITAC’s Manufacturer-in-Residencealso helped build relationshipsamong MakerBot and local sup-pliers, reducing travel time forMakerBot staff, freeing them forother activities, and loweringproduction costs. Finally, ITACsuggested some minor adjust-ments to MakerBot’s lean produc-tion process that reducedproduction cycle time.

2009 2010IncomeFederal $1,343,698 $1,361,377

New York State $1,398,464 $1,152,155

New York City $587,443 $1,802,604

Program Revenue $1,037,296 $1,255,553

Private Sector $111,664 $90,741

Total Income $4,478,565 $5,662,430

ExpensesSalaries $2,742,634 $3,351,138

Program – Non Personnel $1,600,652 $2,084,535

Administrative – Non Personnel $156,596 $198,838

Total Expenses $4,499,882 $5,634,511

Income Less Expenses $(21,317) $27,919

Financial StatementFiscal Years2009 and 2010

Board of Directors

Funders

Timothy G. Noble (Chairman)Vice PresidentJP Morgan Chase & Co.

Albert Mangels (Treasurer)PresidentLee Spring Company

Mal Schuster (Secretary)Sr. Project ManagerPfizer Inc

Tony Cucci, CPA(Chairman of Audit Committee)PartnerBerdon LLP

Timothy GreenfieldPresidentGold Mobile

Natalie HurwitzManaging DirectorSholom & Zuckerbrot Realty, LLC

Vicki R. KeenanVice PresidentPrinting Industries Alliance

Arthur KressnerPrincipalGrid Connections, LLC

Oliver LednicerChairpersonManufacturers Association ofCentral New York

Steven Masur, Esq.Managing DirectorMasurLaw

Joseph McDermottExecutive DirectorConsortium for Worker Education

Alexander NeuburgerPresidentMagic Novelty Co., Inc.

Ex OfficioRobert W. WalshCommissioner,New York City Department ofSmall Business Services

New York State Foundation for Science, Technology and Innovation (NYSTAR®)*

US Department of Commerce, National Institute of Science and Technology Manufacturing Extension Partnership (NIST/MEP)

Empire State Development Corporation – Environmental Services Unit

New York City Council

New York City Department of Small Business Services

New York State Department of Labor/Workforce Development and Training Division

New York State Energy Research and Development Authority (NYSERDA)

*ITAC is the designated Regional Technology

Development Center for NYSTAR®.

l 39 Broadway, Suite 1110 l New York, NY 10006 l 212.809.3900 l www.itac.org