Shenandoah Valley Business Journal -Sept. 28, 2016 by Daily News-Record

A Byrd Newspapers Publication

Volume 16, No. 11, September 27, 2016

Improving Quality Of Life Through Technology

Spotlight

on:

HEALTH CARE Page 8

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Inside This Issue The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.

Focus Section: Health Care ■ Technology Improves Quality Of Life ........Page 8

Other Business News

Editorial Staff

■ Local Ledger.........................................Page 12

Managing Editor: Jerry Blair

■ Jersey Mike’s Coming To Harrisonburg....Page 15

■ Hospitable Headhunters.......................Page 13

Smeltzer Passes Financial Exam HARRISONBURG — Sherwyn Smeltzer of Park View Federal Credit Union has passed his certified financial planner exam, one of three steps necessary to obtain the designation. The exam covers an array to topics that include professional conduct, regulation, and planning education, investment, taxes, and reSmeltzer tirement saving. To be designated a certified financial planner, a person also must meet educational and professional experience requirements. A certified public accountant, Smeltzer

By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com

■ Investments by Matthew Frakes............Page 5 ■ Financial Focus with Kathy Armentrout.....Page 7

earned his bachelor’s degree from Eastern Mennonite University and his master’s at the University of Virginia. — Vic Bradshaw

McClung Recognizes Employee WAYNESBORO — Lisa Satterwhite was recently chosen employee of the quarter at McClung Companies, according to a press release from the company. Satterwhite is a customer service representative. Satterwhite Established in 1992, the award is based on recommendations from fellow See MOVERS, Page 3

By fax: 433-9112 By phone: 574-6267 (news) 574-6229 (ads) On The Cover:

Columns

Contributing Photographers: Austin Bachand, Nikki Fox

■ Squeezing Out Records...........................Page 4

Editor and General Manager: Peter S. Yates

Staff Writers: Vic Bradshaw

Harrisonburg, Va.

App Offers Eatery Discounts HARRISONBURG — A dozen independent city restaurants, Harrisonburg Downtown Renaissance and Harrisonburg Tourism have teamed with the free mobile dining application Spotluck to increase the digital visibility of local eateries, according to a news release. Spotluck, based in Bethesda, Md., offers users chances to receive discounts ranging from 10 to 35 percent — the slower the time, the greater the discount — at area restaurants. It also features at daily mobile-phone “spin” to win bonus savings at a randomly selected restaurant. The app is available for iPhone and Android devices. The city restaurants signed up with Spotluck are Artful Dodger Coffeehouse & Lounge, Beyond Restaurant & Lounge, Cinnamon Bear Bakery & Deli, Food.Bar.

Austin Bachand / DN-R Whit Krumm, 70, of McGaheysville, can listen to the TV through his hearing aid via Bluetooth.

Food, Heritage Bakery & Café, Jalapeno Southwest Grill, Joshua Wilton House Restaurant, O’Neill’s Grill, Pure Eats, Taste of India, Taj of India and The Golden Pony. Spotluck operates in Philadelphia and multiple markets in and around Washington, D.C., including part of Northern Virginia. — Vic Bradshaw

Summit Declares Dividend HARRISONBURG — Summit Financial Group (NASDAQ: SMMF) announced that its board of directors has declared a dividend of 10 cents per share for the third quarter, according to a news release. See SCENE, Page 3

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

‘10 Under 40’ Nominees Sought

Farm Credit Hires Two For City Staff

Scene

Movers

FROM PAGE 2

The dividend is payable on Sept. 30 to shareholders of record as of the close of business on Sept. 15. Headquartered in Moorefield, W.Va., Summit is the financial holding company that operates 15 Summit Community Bank locations in Virginia and West Virginia. It has two branches in Harrisonburg. — Vic Bradshaw

City Gym Ditches Franchise HARRISONBURG — The activity is the same, but the name has changed again. The gym at 381 Lucy Drive is now known as Valley Fitness. It previously was a Nautilus Fitness Center and, for the last 10 years, Gold’s Gym. Owner Val Holmes said she rebranded as an independent center when her franchise agreement with Gold’s ended because she wanted to be able to make certain business decisions without getting approval from a corporate office. She’s worked at the center for 30 years and owned it since 1998.

Since making the transition, she said, new amenities have been added to the freeweight and fitness areas. — Vic Bradshaw

‘10 Under 40’ Accepting Nominees HARRISONBURG — The Shenandoah Valley Business Journal is seeking nominations for its 2016 “10 Under 40” list of rising business leaders under the age of 40. The annual list that began in 2011 highlights some of the area’s young, rising business professionals. Short profiles of those recognized are published in November’s edition of the SVBJ, which will be inserted in the Nov. 29 edition of the Daily News-Record. Submissions should include the nominee’s name, age, business and position as well as a narrative about why the nominee should be included on the list. Candidates must work within the Daily News-Record’s coverage area of Harrisonburg, Rockingham County, southern Shenandoah or Page counties, or northernmost Augusta County. See SCENE, Page 5

FROM PAGE 2

workers and recognizes McClung employees who display extraordinary dedication to their jobs. Satterwhite has worked seven year at McClung and lives in Fishersville. McClung, based in Waynesboro, provided graphic communication services. — Staff Reports

Farm Credit Adds To City Team HARRISONBURG — Farm Credit of the Virginias has added Louesa Lambert and Leslie Harris to its Harrisonburg office staff as a credit analyst. A Mount Sidney resident, Lambert has 13 years of experience in commercial banking, mostly as a senior credit underwriter, according to a press release announcing her hire. She earned a bachelor’s degree in business administration from Milligan College in Tennessee. Harris previously worked with Farm Credit for 13 years as a loan officer and

commercial ag credit analyst, according to the press release. A Churchville resident, she earned at bachelor’s degree in animal and poultry science from Virginia Tech. Farm Credit of the Virginias is a cooperative that has loaned more than 11,000 farmers, agribusinesses and rural homeowners in parts of Virginia, West Virginia and Maryland more than $1.8 billion. — Vic Bradshaw

Rockingham Group Hires Pugh HARRISONBURG — Rockingham Group Insurance has announced Lou Pugh as claims operations manager with oversight of the claims department, according to a press release. In her expanded role, she will report directly to Bob Lyon, company president, and also be a key representative of claims to the senior management team and board of directors, the release says. See MOVERS, Page 12

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Harrisonburg, Va.

Squeezing Out Records Virginia Wine And Cider Sales Rise In 2016 By VIC BRADSHAW Daily News-Record

HARRISONBURG — Wine and cider drinkers are choosing adult beverages from the Shenandoah Valley and Virginia more and more each year. The governor’s office announced last week that sales of Virginia wine and ciders again broke records in fiscal 2016, which ended June 30. Wine sales by volume rose 6 percent over fiscal 2015 to more than 556,500 cases, while cider sales jumped 52 percent to 416,750 cases. Local wine and cider makers followed the statewide trend and largely exceeded it. Curt Hartman, president of Bluestone Vineyard, said the winery outside Bridgewater sold 3,933 cases of wine in calendar year 2015, up 29.7 percent from the 3,032 cases sold in 2014. While tasting-room sales rose 10.5 percent, the

increase was driven by the 1,268 wholesale cases sold, up 104.5 percent from the 620 cases sold the previous year. “It was a good year,” Hartman said. “It was a really good year.” Founded in 2009, Bluestone’s growth was “wild” in its early years because of the low volume it started from, Hartman said. Year-to-year increases are leveling off, but he’s pleased to say they remain ahead of industry averages. Bluestone’s wines are improving, he said, as staff members learn more about the entire winemaking process. “We’re getting better at raising better grapes and learning more and more about the best way to make wine out of Virginia grapes,” Hartman said. “We’re improving every year.” Nikki Fox / DN-R

Valley Grapes Sought

Joe Robins harvests chardonnay grapes at Bluestone Vineyard during their first day of picking the The stories were similar at CrossKeys 2016 grape crop. The governor’s office announced that Virginia wine and ciders broke records in fiscal 2016, which ended June 30. Wine sales by volume rose 6 percent to 556,500 cases and cider See RECORDS, Page 6 sales rose 52 percent to 416,750 cases.

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10 UNDER

Do you know a business leader under 40? The Shenandoah Valley Business Journal is seeking nominations for its 2016 “10 Under 40” list of rising business leaders under the age of 40. Nominations should be submitted before Oct. 20 to svbjnews@dnronline.com.

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Tuesday, September 27, 2016

Children And The Money Talk

arents are making it a priority to pass down to their children the knowledge and tools necessary to responsibly handle a significant inheritance. They often feel their children’s values may become distorted by the comforts and benefits that wealth provides if not given the proper guidance. Ultimately, these parents fear the next generation will squander their wealth rather than use it as a tool for positive change. Generally, the inheritor can feel one of two ways: grounded and financially empowered, or experiencing low self-esteem and guilt over receiving funds they didn’t work for. But there are several steps that parents can take to help ensure the wealth they’ve protected will both endure and be used wisely by generations to come. Among these first steps are getting organized and having certain vital documents in place, keeping the lines of communication open with their children and involving them at the start of the financial decision-making process.

Estate Planning Documenting your decisions about how your portfolio should be managed, who will receive your assets and in what manner, are all important factors to take into consideration when drafting a trust or will. Parents who create trusts may find comfort in knowing that their children and grandchildren will benefit from a properly managed inheritance and that their assets will continue to be used in a way that reflects their values.

Communication Equally as important is communicating the details of your estate plan to your children and periodically revising those documents as circumstances change (e.g., marriages, births, illnesses or a changing economy). When parents communicate with their children about their values and expectations for the family nest egg, children are more likely to be prepared when they receive it, and may also better understand their parents’ motivations. Likewise, parents are more likely to feel assured that their legacy will live on as their children and other beneficiaries learn to invest money and make contributions to society via philanthropic giving. Hosting regular family meetings provides a space where your closest loved ones can share both expectations and concerns, discuss issues and reach agreements together. Some families go as far as developing a family “mission statement” that outlines shared family values and determines common objectives. Children should be involved in these processes from an early age.

FROM PAGE 3

The resubmission of people previously nominated is allowed, but previous winners are excluded from consideration. People are allowed to submit multiple nominees. Nominations should be submitted to svbjnews@dnronline.com. The deadline for nominations is Oct. 20. — Vic Bradshaw

Milstead Earns Safety Award DAYTON — Milstead Construction has been presented the Safety Leadership Award by Commonwealth Contractors, the fourth-largest writer of workers’ compensation in Virginia.

Matthew R. Frakes

and ownership in the process and decisions that are made. When the time comes, these traits may prepare them to manage the family legacy both intelligently and responsibly. The good news is that the task of transferring wealth from one generation to the next can be eased. Parents may achieve the results they desire, through a multigenerational effort involving collaborative planning and open channels of communication. As business magnate, entrepreneur and philanthropist Bill Gates once said: “With

great wealth comes great responsibility … to give back to society and … to see that those resources are put to work in the best possible way.” The sooner you have “the Money Talk” with your children, the better it may be for both your and their own future. Article written by Wealth Management Systems Inc. and MSSB, courtesy of Matthew R. Frakes, Harrisonburg financial adviser. Contact Frakes at 540438-7909, or online http://www.morganstanleyfa. com/thefrakesgroup.

Financial Decision-Making Providing children at an early age with safe, hands-on money management experience teaches them to prioritize and make SMART goals (specific, measurable, achievable, realistic and time-bound). Further, allowing children to participate in decisions regarding investments and philanthropic endeavors instills a sense of responsibility

Candidates Must Work In Coverage Area Scene

Investments

According to a press release from the company, the award is presented to companies that have successfully completed a period of at least one plan year without incurring an occupational injury or illness that resulted in a compensable workers’ compensation claim. This marks Milstead Construction’s 12th consecutive award and injury-free year. Milstead Construction, located in Dayton, is a Class A general contractor specializing in custom homes and land development throughout the Shenandoah Valley. Residential projects include Parkside Village, Cloverdale Estates, South Mountain Village, Park Place Townhomes, and Emerald Bay at Smith Mountain Lake. — Staff Reports

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Tuesday, September 27, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

CrossKeys Sales Up 8 Percent In 2015 Records

FROM PAGE 4

Vineyards in Cross Keys and Cave Ridge Vineyard in Conicville. CrossKeys co-owner Nikoo Bakhtiar said revenue from wine sales rose about 8 percent from 2014 to 2015, and gross revenue at CrossKeys Vineyards rose 12 percent in 2015. The gross revenue figures include money from events held at the winery and restaurant sales. Sales, Bakhtiar said, were boosted by the introduction of its Fruit D’Vine brand, a sweet, fruit-flavored wine with about 7 percent residual sugar. The riesling-based wine has apple, peach, strawberry or blueberry flavoring added to it. A decision by the winery, which opened in 2008, to extend its marketing reach outside the Shenandoah Valley is paying off, drawing customers from Charlottesville and other nearby communities who might not have been aware of CrossKeys, Bakhtiar said. It continues to get significant repeat business. “Mostly people come back because

they know we’re here and they want to come back again,” she said. “We try to offer new vintages every year when they come.” Owner and winemaker Randy Phillips said Cave Ridge Vineyard boosted its production significantly in 2015 by making more private-label wines for other vineyards. “The advantage we have here in the Shenandoah Valley is we can grow really good grapes,” he said. “There’s a lot of demand for grapes from the Shenandoah.” In 2014, Phillips said, Cave Ridge sold about 5,500 cases of wine. Sales jumped to 7,000 cases last year on the strength of the contract winemaking and extra wholesale business generated by a new sales representative. About 40 percent of the winery’s sales Nikki Fox / DN-R were in its tasting room, he said. Virginia, according to the governor’s Gregoria Cruz Tesillos cuts chardonnay grapes from the vine at Bluestone Vineyard during the office, has the fifth-most wineries in the first day of the 2016 harvest. Curt Hartman, president of Bluestone Vineyard, said the winery nation with more than 285 and ranks outside Bridgewater sold 3,933 cases of wine in the 2015 calendar year, which was up 29.7 percent from the 3,032 cases the winery sold in 2014. “It was a good year,” Hartman said. “It See RECORDS, Page 13 was a really good year.”

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Vote For Smart Investment Moves

he presidential election is little more than a month away. Like all elections, this one has generated considerable interest, and, as a citizen, you may well be following it closely. But as an investor, how much should you be concerned about the outcome? Probably not as much as you might think. Historically, the financial markets have done well — and done poorly — under both Democratic and Republican administrations. Also, many factors affecting investment performance have little or nothing to do with the occupant of the White House. Consequently, no one can claim, with any certainty, that one candidate is going to be “better for the markets” than another one. Still, this isn’t to say that any given presidential administration will have no effect at all on investors. For example, a president could propose changes to the laws governing investments, and if Congress passes those laws, investors could be affected. But in looking at the broader picture, there’s not much evidence that a particular president is going to affect the overall return of your investment portfolio. As mentioned above, many factors — corporate earnings, interest rates, foreign affairs, even natural disasters — can and will influence the financial markets. But in evaluating a president’s potential effect on your investments, you also need

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to consider something else: Our political system does not readily accommodate radical restructuring of any kind. So, it’s difficult for any president to implement huge policy shifts — and that’s actually good for the financial markets, which, by their nature, dislike uncertainty, chaos and big changes. The bottom line? From your viewpoint as an investor, don’t worry too much about what happens in November. Instead, follow these investment strategies: ■ Stay invested. If you stop investing when the market is down in an effort to cut your losses, you may miss the opportunity to participate in the next rally — and the early stages of a rally are typically when the biggest gains occur. ■ Diversify. By spreading your dollars among an array of investments, such as stocks, bonds and other investments, you can help reduce the possibility of your portfolio taking a big hit if a market downturn primarily affected just one type of financial asset. Keep in mind though, that diversification can’t guarantee profits or protect against all losses. ■ Stay within your risk tolerance. Investing always involves risk, but you’ll probably be more successful (and less stressed out) if you don’t stray beyond your individual risk tolerance. At the same time, if you invest too conservatively, you might not achieve the growth potential you need to reach your goals. So you will need to strike an

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Financial Focus Kathy Armentrout appropriate balance. ■ Forget about chasing “hot” stocks. Many so-called “experts” encourage people to invest in today’s “hot” stocks. But by the time you hear about them, these stocks — if they were ever “hot” to begin with — have probably already cooled off. More importantly, they might not have been suitable for your needs, anyway. In any case, there’s really no “short

cut” to investment success. Elections — and even presidents — come and go. But when you “vote” for solid investment moves, you can help yourself make progress toward your financial goals. This article was written by Edward Jones for use by Kathy Armentrout, a financial adviser with Edward Jones at 560 Neff Ave., Suite 100,

Tuesday, September 27, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

New Technologies Helping Improve Quality Of Life By VIC BRADSHAW Daily News-Record

Austin Bachand / DN-R

Indi Hewavita of Virginia Prosthetics and Orthotics attaches a prosthetic knee to a prosthetic foot in Harrisonburg.

HARRISONBURG — Wayne Butterfield said his wife, Beverly, was the first to notice the beginning of his hearing loss. “I used to not hear what she said,” Butterfield said. “We’d joke about it, but eventually they get angry.” The 66-year-old New Market resident said he found domestic tranquility and extended his career as a commercial pilot by three years by visiting Harrisonburg Hearing Services and getting the latest in hearing-aid technology. Now retired, he still uses the Bluetooth-enabled device to enhance his daily life. Dr. Robert Hinkle, the audiologist and hearing-aid specialist who helped Butterfield, said technology has greatly enhanced the opportunities people have to hear. Solutions range from modern hearing aids to cochlear implants, which often allow deaf people to hear. The key shift, he said, occurred in the mid-1990s, when digital technology replac-

es analog systems. That made it possible for computer chips to cancel out the whistle of microphone feedback. “That was really the big revolution,” said Hinkle, who came to Harrisonburg in 1975 to found then-Madison College’s audiology graduate program and opened Harrisonburg Hearing Services in 1982. “As they became digital, feedback control became possible.” Medical technology advancements aren’t restricted to hospitals. Audiologists, prosthetists, dentists and others are tapping into new devices to help improve the quality of life their patients lead.

Discerning Sound Bluetooth allows sound to be streamed directly to the hearing aid, Hinkle said. Hearing-aid users can use their cellphones to adjust the device when they go into a place with different acoustics. Digital technology also allows aids to be fine-tuned to pick out specific pieces of sound, such as certain high or low pitches, or See TECHNOLOGIES, Page 9

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Adjustments Saved For Various Places Technologies

FROM PAGE 8

make it stronger as a person’s hearing fades. Such advancements are allowing those with hearing loss to lead much more normal lives. McGaheysville resident Whit Krumm, like Butterfield one of the “guinea pigs” on whom Hinkle tests new equipment, said a streaming device at his home allows him to hear the television without cranking the volume up so loud as to annoy others. The hearing aid also can be programmed to work with his cellphone so he can talk hands-free. The devices, Hinkle said, can be adjusted to cancel out background sound in noisy places, such as restaurants. “The worst part of hearing loss,” he said, “is you lose the ability to sort out and focus on sound in noisy places.” Krumm and Butterfield said they routinely pull out their phones and adjust their aids’ treble and bass when they move into different types of sound environments. They’re also able to save the setting, and global positioning system technology will automatically return the hearing aid to that setting when they return to the location.

More Change Ahead A retired bankruptcy judge for the U.S. District Court for the Western District of Virginia, Krumm said he used a hearing aid for at least the last 12 years of his career. The courtroom acted as an “echo chamber,” and it was difficult for him to hear lawyers and others talking to him from 20 feet away. “The ability to have hearing aids allowed me to interpret what was being said from different people,” said Krumm, 70. “You have people who speak with different levels of volume, different accents, and all courts have issues like that.” Butterfield said the device was most useful when he was on international flights and getting instructions from an air-traffic controller speaking accented English. That became difficult when his hearing began to fade, but the aid allowed him to hear those vital communications clearly again. In a fitting room in his office, Hinkle can sit at a console and make adjustments to a patient’s hearing aid. Graphs appear on his monitor that show him what the Bluetooth transmitter is picking up, which allows him to adjust the device. They can show the different levels of sound a person is getting in each ear.

Photos by Austin Bachand / DN-R

ABOVE: Dr. Robert Hinkle, a hearing aid specialist and audiologist at Harrisonburg Hearing Services, shows the software used to program hearing aids. LEFT: Some of the new technology Hinkle is using at Harrisonburg Hearing Services can be programmed to work hands-free through a cellphone and can be adjusted to cancel out background sound in noisy places, such as restaurants. Those settings can then be saved using GPS to automatically match the hearing aid to that setting when the user returns to the location. While users can adjust their aids to adapt to their sound environment, sometimes only a doctor can make the appropriate adjustments. That, Butterfield said, is what he had to do after visiting Pale Fire Brewing Co. in for the former Ice House building because the warehouse acoustics “drove me crazy.”

Hinkle said he thinks the Bluetooth software, now housed in a case, will be printed onto the case in the future. He also thinks hearing aids one day will double as biological monitor, providing the wearer’s heart rate, respiration, sugar levels and other information. In the 10 years he’s been a certified pros-

thetist and orthotist, Indi Hewavita said the list of life-altering changes he’s seen in the field is getting fairly long. Instead of doing only plaster casting at the Harrisonburg office of Virginia Prosthetics and Orthotics, he said, computer-assisted See TECHNOLOGIES, Page 10

Tuesday, September 27, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Prosthetics Can Learn Gait, Habits Technologies

FROM PAGE 9

design and manufacturing technology often allows physicians to create a 3-D scan of a patient’s hand, for instance, make any needed modifications and start the fabrication process. Myoelectric hands and arms now allow patients to move their digits individually by “firing their remaining muscles in their arms,” Hewavita said. Microprocessor feet can recognize different ways people are walking, such as up a hill or down steps, and adjust accordingly, said Hewavita. Microprocessor knees can realize when a used is stumbling and potentially prevent a fall. “They can read and learn their gait habits and respond accordingly,” he said. “They know if the patients is in a crowded space or exercising or if they’re just going for a walk, and they switch into different modes accordingly.” One of his patients, a woman in her mid-80s who suffered both a stroke and a heart attack, couldn’t sit up on her own when Hewavita first evaluated her. After physical therapy and with the aid of a prosthetic knee, she was able to move from a nursing home into assisted living because the microprocessors in the knee greatly reduced the likelihood that she would fall. “We started with a mechanical knee to help her to stand up,” he said. “Then she was able to ambulate. “Ten years ago, that would have been it. But now we have these prosthetic knees, these computerized knees, that will help an individual like that with the safety part. If it was a mechanical knee without the safety features, I think she would’ve remained in skilled care.”

Photos by Austin Bachand / DN-R

ABOVE: Indi Hewavita of Virginia Prosthetics and Orthotics attaches a Bluetooth device to a prosthetic knee so that he is able to access the computer in the knee from his computer. LEFT: New prosthetics and orthotic devices are being made using new materials that are lighter and more flexible to make them more user-friendly.

Usefulness Important Many prosthetic and orthotic devices are being redesigned using new materials that are lighter and more flexible, Hewavita said. The changes make devices more user-friendly. “I think it definitely helps a patient in their activities with daily living, and also in their compliance of using a prosthesis throughout the day,” he said, “because if it’s a bad fit, a patient will not use it throughout the day.”

Carbon-fiber technology is the latest wave in orthotics, said Hewavita. The lightweight material provides energy return, which helps them keep move more efficiently and exert less energy than they would otherwise. Prosthetics and orthotics don’t come cheap, but overall their cost

is dropping. “When I first started 10 years ago,” said Hewavita, “there was only maybe one or two companies that had microprocessor technology. Now, there’s a handful of companies that do offer that, so because of that competition, the cost has come down.”

Unfortunately, insurance reimbursement has dropped, too, so many patients have to decide whether they can and want to cover the difference to get the device that would help them most. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Local Ledger

With Group Since ’03 Movers

FROM PAGE 3

Pugh has been with the Rockingham Group since 2003, starting her career as a claims adjuster and quickly moving into a property claims management role. She is an active member and past officer of Mid-Valley Claims Association, a division of the Virginia State Claims Association. The Rockingham Group includes Rockingham Mutual Group Inc., Rockingham Group Inc, Rockingham Insurance Co., Rockingham Casualty Co. and Rockingham Mutual Service Agency. The group of insurance companies serves policyholders in Virginia, Pennsylvania, North Carolina, and the international community. rockinghamgroup.com. — Staff Reports

11 Lenhart Pettit Attorneys Named In 2017 Best Lawyers HARRISONBURG — Lenhart Pettit announces that 11 of its lawyers were recently selected by their peers for inclusion in the 2017 edition of Best Lawyers in America, according to a press release from the firm. The attorneys listed include Michael E. Derdeyn, Ralph L. Feil, John W. Flora, Lisa Anne Hawkins, Richard H. Howard-Smith, Jeffrey G. Lenhart, Donald D. Long, Jennifer E. Shirkey, Bill Shmidheiser, Cathleen P. Welsh and J. Page Williams. In addition, the firm announced that Cathleen P. Welsh has again been named Best Lawyers’ “Lawyer of the Year” for 2017 in Employment Law-Management and Jeffrey G. Lenhart has again been named Best Lawyers’ “Lawyer of the Year” for 2017 in Tax Law for the Charlottesville metropolitan area. Harrisonburg and other areas outside Charlottesville are included in Best Lawyer’s “Charlottesville metropolitan area.” Since it was first published in 1983, Best Lawyers is regarded as the definitive guide to legal excellence. For the 2017 edition, 7.3 million votes were analyzed, which resulted in almost 55,000 leading lawyers being included in the new edition. — Staff Reports

Harrisonburg, Va.

Central Valley Area Home Sales Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

August 2016

August 2015

Pct. Change

$160,000 $201,450 $174,900 $182,000 n/a n/a n/a

$161,900 $197,500 $177,750 $134,500 n/a n/a n/a

-1.17% 2.00% -1.60% 35.32% n/a n/a n/a

Days On Market Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

August 2016

August 2015

Pct. Change

25 59 129 236 n/a n/a n/a

56 54 170 142 n/a n/a n/a

-55.36% 9.26% -24.12% 66.20% n/a n/a n/a

Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

August 2016

August 2015

Pct. Change

58 96 61 21 n/a n/a n/a

41 85 62 19 n/a n/a n/a

41.46% 12.94% -1.61% 10.53% n/a n/a n/a

Unemployment July 2016

June 2016

July 2015

5.6% 3.7% 3.6% 4.5% 3.5% 4.0% 4.1%

5.6% 3.7% 3.5% 4.6% 3.5% 3.9% 4.0%

5.9% 4.3% 4.1% 6.0% 4.1% 4.4% 4.7%

Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Source: Virginia Employment Commission

Labor Force Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

July 2016

June 2016

July 2015

23,483 39,361 21,513 11,622 36,297 11,780 9,840

23,445 38,934 21,241 11,552 36,006 11,740 9,814

23,938 40,771 21,837 12,122 37,435 12,012 10,033

Source: Virginia Employment Commission

Building Permits* July 2016

Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence

Retail Sales (in millions) Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

July 2016

$102.8 $56.4 $18.6 $39 $43.5 $33.4 $44.4

Source: Weldon Cooper Center for Economic and Policy Studies

Harrisonburg Rockingham Page Augusta

July 2015

Permits Issued

Estimated Cost

Permits Issued

Estimated Cost

13 20 5 7

$3.62M $5.07M $565,000 $1.13M

9 28 4 26

$1.38M $6.70M $475,185 $4.78M

Source: censtats.census.gov/bldg/bldgprmt.shtml *Permits are for residential construction only, single- and multifamily buildings, as recorded by the U.S. Census Bureau.

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Hospitable Headhunters Hospitality Industry Employee Search Firm Opens Downtown By VIC BRADSHAW Daily News-Record

Nikki Fox / DN-R

George and Sue Wooten are owners of the local Patrice & Associates in Harrisonburg, an employee search firm specializing in hospitality industry management. It is one of 90 Dunkirk, Md.-based franchises named after the owner and founder, Patrice Rice.

Cider Sales In State Also Saw Growth 40 years. Though the other businesses are more established, Showalter said fifth in wine grape production. the cidery, orchard and greenhouse each account for about a third of the operation’s Cider On The Rise overall revenue. Each business segment is Grapes weren’t the only fruit being benefiting from the others. turned into moneymaking bevBy its third year, she said, Old erages locally. Hill had exceeded its five-year “As people Sarah Showalter, co-owner goals. become aware of Old Hill Hard Cider outside “As people become aware of of cider, more cider, more people are drinking ciTimberville, said its sales continue to increase “exponentialder on a regular basis,” Showalter people are ly” in the fast-growing cider drinking cider said. “That could be because it’s market. Old Hill sold slightly gluten-free, or maybe because it on a regular less than 10,000 gallons last has a more moderate alcohol conbasis.” year. tent but is super food-friendly.” Sales to restaurants, bottle Showalter said the owners — SARAH SHOWALTER shops and other wholesale acof the state’s cideries are teamOLD HILL HARD counts skyrocketed 112 percent CIDER CO-OWNER ing up to try to build the name from 2014 to 2015, she said, and reputation of Virginia’s ciwhile tasting-room sales rose der. 25 percent. “We’re trying to brand the state,” she The 5-year-old cidery operates along said, “as THE place for hard cider.” with Showalter’s Orchard, a 52-year-old business, and its accompanying greenContact Vic Bradshaw at 574-6279 house, which has existed for more than or vbradshaw@dnronline.com

Records

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HARRISONBURG — Many people would call Sue and George Wooten headhunters for the hospitality industry. Sue prefers a different term: matchmakers. The Wootens have signed on as franchisees of Patrice & Associates, an employee search firm specializing in hospitality industry management positions. Headquartered in Dunkirk, Md., the business named after owner and founder Patrice Rice has grown to 90 franchises. The New Market couple made the move when George Wooten finally bought into what Sue was saying.

“I’ve been telling him for many, many, many, many years that he needed to be his own boss,” she said Monday in their offices overlooking South Main Street. “We were finally able to convince him.” The Wootens’ territory includes Rockingham, Augusta and Rockbridge counties and the cities within their boundaries. Sue manages their seven employee recruiters, who began orientation Aug. 5 and began tracking employees later that month; George will work to sign up local restaurant and hotel owners as clients and also is a regional developer and can award franchises in Virginia, North Carolina and Washington, D.C. The couple have focused on hiring and training their employees and haven’t landed any local clients, but George said the recruiters found 80 candidates See HOSPITABLE, Page 15

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Harrisonburg, Va.

Sub Shop Employees To Bring Jersey Mike’s To Harrisonburg By VIC BRADSHAW Daily News-Record

HARRISONBURG — Two more eateries are coming to the area of the city with the most dining options. Jersey Mike’s Subs, which Nation’s Restaurant News pronounced in June as the fastest-growing chain in America for the third straight year, is moving into a 1,349-square-foot space in The Shops on University Boulevard at 563 University Blvd. The chain has more than 1,500 restaurants operating or under development, according to information provided by the company. Meanwhile, building permits have been approved to convert space at 1550 E. Market St. for a Pizza Hut property. Officials with parent company Muy Foods, based in San Antonio, Texas, did not respond to inquiries about whether it will be a standalone restaurant or a WingStreet location. Gordon Pannill and Charles Golden, who have worked in Jersey Mike’s stores in Northern Virginia and Maryland, respectively, for about five years, are bringing Jersey Mike’s to Harrisonburg.

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Pannill said the first-time franchisees the Harrisonburg market outside the colhope to open here in early November. lege was good.” They also are working on a Blacksburg location and are reviewing other markets Charitable Opening Jersey Mike’s began in 1956 as Mike’s along the Interstate 81 corridor. He declined to say what they’re spend- Subs in Point Pleasant, N.J. Employee Peter Cancro, then 17 and not legally ing to open the eatery, but the Jersey old enough to slice a sub in the Mike’s website said the average state, bought the business in cost to launch the 197 restau1975 with the help of his rants that opened in 2015 football coach and slowly was $318,916. We wanted to expanded. A Martinsville native, work in a fresh market He began franchisPannill said he wanted ing in 1987, changing to launch in a market that had a lot of things the shop’s name to not too far from his going on. Jersey Mike’s. Canhometown that didn’t cro remains CEO of have a Jersey Mike’s. Gordon Pannill, Jersey Jersey Mike’s FranHarrisonburg fit the bill Mike’s franchisee chise Systems, based in and had another plus. Manasquan, N.J. “We wanted to work in a Business Insider and fresh market that had a lot of Restaurant Business each ranked things going on, so [James Madison University] was a draw for us,” he the company the fifth-best fast-food chain said. “It’s always nice to have students in America this year, and it’s received numerous other honors. around. Pannill said when he began working “But when you look at the market, the college students are not there the entirety part time for the chain, Golden trained of the year, and we really need to focus on him for he first couple of days before rethe area outside the school. We felt like turning to his regular store. The men be-

“

came friends, continued learning about the company from the inside and eventually decided to become business partners. When Harrisonburg came on their radar, Pannill said they studied the market and “liked what we saw.” They had someone within their orbit to turn to for information about the city. He said Golden is dating Carli Toliver, a former basketball star at Harrisonburg High School and Lehigh University. Pannill said he was drawn to Jersey Mike’s initially by its food. “I loved the sandwich,” he said, “thought it was one of the best subs I’d ever had.” As he got more involved, said Pannill, its community giving and corporate culture sold him on the company. The local store will begin its charitable giving immediately upon opening, Pannill said. A local nonprofit will be chosen to help staffers spread discount coupons for the first several days of opening, and diners will receive a sandwich for a donation to the charity. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

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Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, September 27, 2016

Company Finds Employees Through Various Means, Including LinkedIn Hospitable

them before the interview, speak with them after the interview, and stay in for openings at 82 companies outside the touch months after they’re hired. area in their first 16 workdays. They can In addition to hotels and restaurants, find employees for Patrice & Associates Patrice & Associates fills positions for caclients outside their territory but will fo- sinos and high-end groceries. George said cus on the local market once clithey’ll work to fill any job for a ents are developed. client, but their emphasis is on “Restaurant positions from shift manager up. managers really Managers ‘Trapped’ Their recruiters range in age George Wooten knows plenget trapped. from 27 to 70, George said, and ty about hiring. The 37-year They don’t have none had experience in the field restaurant veteran said he’s time to look for when hired. They’re paid a salworked for multiple fast food another job.” ary to start, eventually transirestaurants, including Arby’s tioning to commission only or a and Burger King, as well as the — SUE WOOTEN salary-commission hybrid. Safeway grocery chain. Most report to the office at PATRICE & ASSOCIATES “I’ve interviewed and hired FRANCHISEE 107 S. Main St., but two work literally thousands of people in from home. my life,” he said. George said the couple hopes Sue Wooten raised their famto grow to as many as 12 recruitily but also ran a diner they owned in Ber- ers by year’s end. lin, N.H., for three years. The Wootens said they view their job Contact Vic Bradshaw at 574-6279 as one of helping people. or vbradshaw@dnronline.com “Restaurant managers really get trapped,” Sue Wooten said. “They don’t have time to look for another job, don’t have time to interview.” Said George Wooten: “What we really get paid for is matching the right person with the right client.” The company finds employees by various means, including searching the professional social media website LinkedIn. Patrice & Associates doesn’t just arrange interviews. George said they write resumes for the people they recruit, coach

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FROM PAGE 13

Nominations for the Shenandoah Valley Business Journal’s “10 Under 40” list should be submitted before Oct. 20 to svbjnews@ dnronline.com.

Nikki Fox / DN-R

George Wooten (center), regional developer and franchisee of Patrice & Associates, talks to Logan Snyder (left) and John R. Howdyshell about the hospitality company they are recruiting for. The recruiters at the downtown location of Patrice & Associates range in age from 27 to 70 and none had experience in the field before being hired. The recruiters are paid on a salary to start and eventually will transition to commission only or a salary-commission hybrid.

Tuesday, September 27, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.