A hundredth of an inch’s difference doesn’t even register to the human eye, but it can be a world of difference in manufacturing.
Manufacturing components have to be precisely measured and constructed or they just don’t work. If the computers that instruct the machines aren’t exactly correct in their instructions, manufacturers can have big trouble on their hands.
So the Connecticut Governor’s Small Business Advisory Council plans to help manufacturers protect those computers from getting knocked out by disasters or corrupted by hackers. The group is working with the Connecticut Development Authority to put together a loan program for small Connecticut businesses that manufacture parts in utilities systems, bridges, train equipment and more.
“This isn’t to say that companies are doing anything wrong. What we’re trying to do is create a strength,” said P. Joseph Harpie, chairman of the small business council and senior loan officer with the Connecticut Development Authority.
Harpie said the loan program officially began this week, and will rely on the private funds of the CDA to dole out loans to eligible businesses.
Hundreds Qualify
Small manufacturers in Connecticut – Harpie said roughly 700 would be eligible – could qualify for loans to help upgrade security systems and train personnel, among other things. “Small manufacturers” in this case means businesses with about 25 to 100 employees or $5 million to $30 million in annual sales.
“This isn’t for everybody,” he said. “We’re kind of cherry-picking.”
Because the loans are meant to help businesses continue in the wake of disasters or attacks, the Department of Homeland Security is helping to advise on which kind of systems are vulnerable.
Wayne Sandford, deputy commissioner of the state Department of Emergency Management and Homeland Security, said the department is encouraging groups to have a plan in case any kind of disaster – fire, flood, terrorist attack or otherwise – knocks out that company’s computer system.
“History has shown that if a small business experiences a catastrophic loss, there’s an 80 percent chance that it will not reopen,” he said.
IT security can be a big expense for a small business, but Sandford said companies need to ask big-picture questions, like whether all data is backed up, how often and where.
Allen Samuel, executive director of state non-profit partnership Aerospace Components Manufacturers, said he felt confident that their 53 member organizations already had IT security measures in place, such as encryption and firewall security.
Many small components manufacturers transmit their data back and forth between other businesses and internally, and while these companies rely heavily on computers, he said most member companies he knew of had solid back-ups for their data.
Ken Flanagan, president of Glastonbury-based aerospace manufacturer Flanagan Industries, said his company was eyeing the loan program to beef up protection for the company’s new software.
New software alone costs between $275,000 and $300,000 for a company the size of Flanagan’s 105 employees, he said. Added IT security just adds more expense, and not many loan programs are available for this type of investment, he said.
“Banks are less than enamored with loaning to companies for software of IT products,” he said.
