Volume 19, No. 11, September 26, 2018
Spotlight
on:
HEALTH CARE Page 8
EMPLOYERS GRAPPLE WITH UNCERTAINTY
2
SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
BUSINESS JOURNAL Shenandoah Valley
The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.
Inside This Issue Focus Section: Health Care n Businesses Try To Cope With Rising Prices.............Page 8
Other Business News
Editorial Staff
n Aldi Opens In City.........................................Page 4
Editor and General Manager: Craig Bartoldson
n Valley Sees Drop In Unemployment................Page 7
Harrisonburg, Va.
Contact us By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com By phone: 574-6281 (news) 574-6229 (ads)
n Bridgewater Sells Land Next To Park............Page 12
Managing Editor: Jerry Blair
n Nursing Program Expands at EMU...............Page 13
On The Cover: Photo courtesy of Metro Creative
Staff Writers: Nolan Stout, Pete DeLea Contributing Photographers: Daniel Lin
n Local Ledger................................................Page 14
Columns n Financial Focus with Kathy Armentrout..........Page 3
Hill Joins Hess Financial Firm
Shentel VP On National Board
HARRISONBURG — Hess Financial, which provides securities and advisory services, announced that Robyn Hill has joined the firm as a licensed investment adviser and financial planner. Hess, in a press release, said that Hill has been a practicing estate planning attorney as well as a certified financial planner. Hill Hill also has experience in charitable giving and divorce planning, according to the release. Hess Financial;s office is at 380 E. Market St. near downtown Harrisonburg.
EDINBURG — Tom Whitaker, senior vice president of Shenandoah Telecommunications Co., has been appointed to the National Television Cooperative. The NCTC represents 750 small and midsize independent cable operators across the U.S. “I am excited to serve an organization that has played such a pivotal role in leveling the playing field for small, independent cable companies,” Whitaker said in a press release. “I look forward to participating in the future growth of this great cooperative.” Board members serve three-year terms.
— Staff Reports
See MOVERS, Page 3
— Nolan Stout
Brain Injury Connections Awarded 3-Year Accreditation HARRISONBURG — Brain Injury Connections of the Shenandoah Valley announced that it has been awarded accreditation from CARF International for a period of three years for its Community Services Coordination program. This is the third accreditation that the organization has been awarded since its start in 2005, according to a press release from the not-for-profit organization. This accreditation represents the highest level that can be awarded to an organization and shows Brain Injury Connection’s substantial conformance to the CARF standards, according to the release. An organization receiving the accreditation must go through a rigorous peer review pro-
cess, and demonstrate to a team of surveyors during an on-site visit its commitment to offering programs and services that are measurable, accountable and of the highest quality, the release states. Brain Injury Connections of the Shenandoah Valley, formerly Crossroads to Brain Injury Recovery, is a notfor-profit organization with a stated mission of helping people affected by brain injury by providing information, services and resources. Brain Injury Connections serves the greater Shenandoah Valley area with its main office in Harrisonburg and a satellite office in Fishersville. CARF, founded in 1996, is an independent, nonprofit accrediting body whose mission is to promote the See SCENE, Page 5
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Wednesday, September 26, 2018
3
Women Business Owners: Don’t Forget About Your Retirement Plan Several, Fairly Easy To Maintain Options Available
A
merican Business Women’s Day is celebrated on Sept. 22. And there is indeed cause for celebration, because, in recent decades, the number of women business owners has risen sharply, to the point where nearly 40 percent of all businesses are now women-owned, according to the U.S. Census Bureau. If you are one of these owners, or thinking about becoming one, you’ll always have a lot to think about when running your business, but there’s also an area you can’t ignore — your retirement. Specifically, you need to consider establishing your own retirement plan. Most plans available to you are fairly easy to establish and maintain, and are not terribly costly to administer. Here are some popular options:
Owner-only 401(k)
This plan, also known as an individual or solo 401(k), is available to self-employed individuals and business owners with no full-time employees other than themselves or a spouse. For 2018, you can put in up to 25 percent of your annual income as an “employer” contribution, and you can defer up to $18,500 (or $24,500 if you’re 50 or older). The sum
of your employer contribution and your salary deferrals cannot exceed $55,000, or $61,000 if you’re 50 or older. You can make elective contributions on a pre- or post-tax (Roth) basis. Pre-tax contributions reduce your taxable income for the current year. Roth contributions don’t offer any immediate tax benefit, but any qualified withdrawals will be 100percent tax-free.
FROM PAGE 2
WAW’s Franklin Honored HARRISONBURG — Humes J. “Tripp” Franklin III of Wharton Aldhizer & Weaver PLC was selected as an honoree in the 2018 Class of the “Leaders in the Law” by Virginia Lawyers Media, the publisher of Virginia Lawyers Weekly, according to a press release from the firm. Now in its 13th year, this awards program recognizes lawyers in the com-
Kathy Armentrout
SEP IRA
If you have just a few employees or are self-employed with no employees, you may want to consider a SEP IRA. You’ll fund the plan with tax-deductible contributions, and you must cover all eligible employees. As an employer, you can contribute the lesser of 25percent of your compensation (if you’re also an employee of your own business) or $55,000.
Solo defined benefit plan
Pension plans, also known as defined benefit plans, are less common than in previous years, but you can still set one up for yourself if you’re self-employed or own your own business. This plan has high contribution limits, which are determined by an actuarial calculation, and your contributions are typically
Ashby Animal Clinic Names New Vet Movers
Financial Focus
monwealth who are setting the standard for other attorneys, according to the release. “Leaders” are recognized for changing the law, serving the community, changing practice, or improving Virginia’s justice system, among other accomplishments. Tripp was one of 25 lawyers chosen for the 2018 class, the release states. Tripp focuses his law practice on trial work in a variety of legal specialties. He was in the news most recently as a member of the trial team that secured a $3.5 million medical malpractice verdict, according to
tax-deductible.
SIMPLE IRA A SIMPLE IRA, as its name suggests, is easy to set up and maintain, and it can be a good plan if your business has fewer than 10 employees. However, while a SIMPLE IRA may be advantageous for your employees, it’s less generous to you, as far as allowable contributions go, than an owner-only 401(k), a SEP IRA or a defined benefit plan. For 2018, your annual contributions are generally limited to $12,500, or $15,500 if you’re 50 or older by the end of the year. You can also make a matching contribution of up to 3 percent of your compensation. As an employer, your con-
the release. Tripp appears regularly in city and county courts in Virginia and West Virginia, as well as the U.S. courts in both states. He also handles appeals to the Virginia Supreme Court and the United States Fourth Circuit Court of Appeals. He was the managing partner of Wharton, Aldhizer & Weaver for five years before stepping down in January of this year. Wharton Aldhizer & Weaver PLC is a full-service law firm with offices in Harrisonburg and Staunton.
— Staff Reports
tributions are fully deductible as a business expense up to certain limits; as an employee, your pretax contributions reduce the amount of your taxable income for the same tax year. Before opening any of these plans, you’ll want to consult with your tax advisor on the tax issues and a financial professional on the investment aspects. But don’t wait too long. You will need to work hard to keep your business thriving — so choose a retirement plan that works just as hard for you. This article was written by Edward Jones for use by Kathy Armentrout, an Edward Jones financial adviser at 560 Neff Ave., Suite 100, Harrisonburg; 540574-1013
Kettlekamp Joins Animal Clinic HARRISONBURG — Donald Kettelkamp has joined the team of veterinarians at Ashby Animal Clinic, according to a press release. Kettelkamp received a doctorate of veterinary medicine from Iowa State University in 2003. He worked as a large animal veterinarian for three years before transitioning to a small animal doctor for the past 12 years. He lives in Rockingham County with his wife and two sons.
— Nolan Stout See MOVERS, Page 5
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Wednesday, September 26, 2018
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Aldi Grocery Chain Opens Store In Harrisonburg German Discount Grocer Celebrates Grand Opening By PETE DELEA
Daily News-Record
HARRISONBURG — For the last couple of years, Bera Patterson would drive to Waynesboro to shop for good deals at Aldi. When the German discount grocer opened a store in Staunton a few months ago, she shifted her shopping there. But as of Sept. 6, The 78-year-old Virginia Mennonite Retirement Community resident will no longer have to leave the Friendly City to shop at Aldi. The supermarket celebrated a grand opening of its Harrisonburg store, near the intersection of Country Club Road and East Market The prices Street. “The prices are are very good. very good,” PatI was anxious terson said. “I was for them to anxious for them to get the store get the store going.” going. Aldi, whose U.S. operations are n Bera Patterson, based in Batavia, 78-year-old Ill., began work Virginia Mennonite last fall on the Retirement 11,000-square-foot store on 8 acres in Community resident, the eastern part of on new Aldi store the city. Harman Construction Inc. built the $1.2 million store on land formerly owned by Spotswood Country Club. The new store is part of a growth plan that involved the company spending $3.4 billion to add 800 stores nationally by the end of 2022 to give it 2,500 locations. That would make Aldi the third-largest grocer in America by store count. Dan Defosse, Aldi’s district manager, said the new store is the best the company has to offer. “This is the latest, greatest model we have,” Defosse said. “We have only the best for Harrisonburg.” While shoppers can find roughly 40 to 50 percent off staples, including bread, milk and canned goods, they can also
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LEFT, BELOW: Shoppers make their way through Aldi during the grocery store’s grand opening. DN-R File
find good deals on gluten-free and organic products, he said. Defosse said they are constantly looking to expand the products they offer and meet the demands of its customers. “[Gluten-free and organic] are absolutely a big concern for our customers,” he said. During the grand opening, managers gave gift cards ranging from $5 to $100 to the first 100 customers. Shoppers also had the chance to enter the Produce For A Year Sweepstakes for a chance to win a year’s supply of Aldi produce. Kathy Hartje, 57, of Harrisonburg, was the first in line for the store’s opening. “I’ve been waiting a long time for it to open,” Hartje said. “You can really get great prices.” Contact Pete DeLea at 574-6267 or pdelea@dnronline.com
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Dixie Gas Offering Metered Option Scene
FROM PAGE 3
quality, value and optimal outcomes of services for the people being served, the release states.
torney Jeffrey Lenhart, a founding member of Lenhart Pettit, will join the firm. The firm offers comprehensive wealth planning solutions.
— Nolan Stout
— Staff Reports
Graves-Light Launches As Independent Investment Adviser HARRISONBURG — Graves-Light Private Wealth Management LLC, a community-focused wealth management firm based in the city, announced its launch as an independent registered investment adviser in September. The move toward an independent model underscores the firm’s values-driven commitment to offering unbiased and transparent advice to these communities, according to a company press release announcing the launch. Graves-Light also announced that at-
Great Clips Planned For Stone Port HARRISONBURG — The Stone Port area is getting a new business. Great Clips plans to open a barber shop at 1925 Stone Spring Road in the Stone Port mixed-use development. DG Gauman & Co. received a building permit at the end of August to construct a $65,000, 1,041-square-foot space for the discount barber shop. No timetable for construction was available. The area around the intersection of Stone Spring and Port Republic roads has become a hub of commercial activity over the past two years. Great Clips will join two banks,
Farm Credit Provides $1.8B In Financing Movers
FROM PAGE 3
Farm Credit Hires Analysts HARRISONBURG — Farm Credit of the Virginias recently announced the addition of two new business analysts and a customer service representative who will work out of its Harrisonburg office. According to a Farm Credit press release, Will Stanley, a native of Ashland, and Nitisha Aryal, a native of Nepal and a Harrisonburg resident, have been hired as business analysts. Falls Church native Katie Shipp is the new customer service representative.
Q& A
Stanley earned undergraduate degrees in agricultural and applied economics, and animal poultry science from Virginia Tech; Aryal holds an MBA from West Texas A&M University; and Shipp has more than 30 years of customer service experience, according to the release. According to the release, Farm Credit of the Virginias provides over $1.8 billion in financing to more than 11,000 farmers, agribusinesses and rural homeowners throughout Virginia, West Virginia and western Maryland.
— Staff Reports
Professional Forum QUESTIONS & ANSWERS
Includes a 4.95”w x 2.5”h question and answer space each month, allowing your business to answer a question related to an area of expertise pertaining to your business. This feature is category exclusive; so, you’ll be the only business in your specific category in Professional Forum. Answers should be limited to 75100 words. Your business will also receive 10,000 impressions of a 300x250 rectangle ad on DNRonline.com. Contact your Daily News-Record Sales Rep for details! 540-574-6220 Monthly Options: $115 with a 12 consecutive month commitment OR $130 with a 6 consecutive month commitment
three restaurants, a student-housing complex, doctors office and Walmart Neighborhood Market.
— Nolan Stout
Dixie Oil Offers Metered Service VERONA — Dixie Gas and Oil Corp. is offering customers a metered service option for propane. The Verona-based company began offering the service in August. Metered service allows customers to pay monthly for the amount of propane gas used. The service requires a new meter integrated into existing tanks. In addition, there are no delivery fees or tank rental charges with metered service — customers only pay a small monthly fee and for the propane they use. For more information about metered service, visit dixiegas.com.
— Nolan Stout
Two Advance At Bridgewater Retirement Community BRIDGEWATER — Bridgewater Retirement Community recently announced two employees have been promoted to new positions. Laura Spicer has accepted the position of director of Well-Being and Engagement at Bridgewater Retirement Community. According to a BRC press release, Spicer has been instrumental in getting the retirement community’s new Wellzesta program started, training residents and keeping daily information current. As a certified registered dietitian, Spicer previously worked with Sodexo food service on the Bridgewater Retirement Community
Wednesday, September 26, 2018
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Park View Credit Union’s BRC Branch Holds Grand Opening BRIDGEWATER — Park View Federal Credit Union marked its grand opening of its newest branch in Bridgewater Retirement Community in September. In addition to credit union officials, staff and residents of BRC and representatives of the Harrisonburg-Rockingham Chamber of Commerce were on hand, according to a Park View press release. PVFCU was selected by Bridgewater Retirement Community to be the on-site financial services provider, according to the release. The BRC location, the credit union’s fifth full-service branch in Rockingham County, is in the Houff Community Center on the retirement community’s campus. The branch is open Monday through Wednesday, 11 a.m. to 3 p.m.; and Thursday and Friday 11 a.m. to 4 p.m.. Appointments outside those hours can also be scheduled, the release states.
— Staff Reports campus, reviewing menus, conferring with chefs and cooks on how to keep residents’ food choices nutritionally balanced, assessing nutritional needs, the release states. She also teaches a sports nutrition class at Bridgewater College, which the release states opens resources for added connections on campus. Also, BRC announced that Annie Frazier has accepted the role of HR manager of organizational design, culture and training. Frazier came to BRC six years ago from Richmond, and was an original member of the retirement community’s Person First team and the first household coordinator for Unity House.
— Staff Reports
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SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
Harrisonburg, Va.
As Jobs Open, Quitting Reaches Unprecedented Levels WASHINGTON (AP) — U.S. employers advertised the most jobs on record in July, and the number of workers quitting their jobs also hit a new all-time high. Americans are increasingly taking advantage of a tight labor market to find new, often higher-paying jobs. That could help push up wages broadly across the economy. The Labor Department said Sept. 11 that the number of job openings rose 1.7 percent to 6.9 million, the most on record dating back to late 2000. The number of people quitting jumped 3 percent to 3.58 million, also a record. Quits are typically a good sign that jobs are plentiful, because people usually quit when they have another job or are confident they can find one. With the unemployment rate at 3.9 percent, near an 18-year low, businesses are increasingly desperate to find workers. Even as the number of available jobs rose, overall hir-
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Mobility of workers between jobs boosts competition for talent and puts pressure on employers to offer better pay and benefits. n Cathy Barrera, chief economist for online job site ZipRecruiter
ing in July was essentially flat, with about 5.7 million people finding jobs, the report showed. The data are from the government’s Job Openings and Labor Turnover survey, or JOLTS, which tracks total job openings, quits and hiring. The JOLTS report comes after the government said on Sept. 7 that employers added a healthy 201,000 jobs in August. That figure represents the net total of jobs added, while the JOLTS data reports overall hires without subtracting quits, layoffs and resignations. The jump in job openings in July sug-
gests solid hiring will continue in the coming months. Private sector surveys also point to solid gains. ManpowerGroup’s employment outlook survey, released Sept. 11, found that employers in all 13 large industries that it tracks plan to add workers in the final three months of the year. The staffing company’s survey also found that hiring should pick up in all four regions. The company’s hiring index in the South reached a 10-year high, ManpowerGroup said. With the economy growing at a healthy clip and consumers spending freely, employ-
ers are optimistic about future demand and want to hire more. That appears to be finally pushing some employers to pay more, pushing up wages. According to Sept. 7’s jobs report, average hourly pay rose 2.9 percent in August compared with a year earlier. That was the best annual gain since June 2009, when the recession ended. A more dynamic job market, with more people quitting and finding new work, can help fuel better wage gains. Workers who switch jobs are getting raises roughly onethird larger than those who remain at their jobs, according to the Federal Reserve Bank of Atlanta. “Mobility of workers between jobs boosts competition for talent and puts pressure on employers to offer better pay and benefits,” said Cathy Barrera, chief economist for online job site ZipRecruiter.
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Wednesday, September 26, 2018
7
Valley Unemployment Drops In July By NOLAN STOUT
Shenandoah and Page counties and Pendleton and Hardy counties in West Virginia, but had a higher rate than Greene HARRISONBURG — More and more Val- and Albemarle. ley residents are finding work as jobless In the combined Harrisonburg and rates continued to drop. Rockingham County metro area, the laArea unemployment fell in July from bor force remained relatively unchanged, the previous month, continuing a year- dropping by 70 workers to 65,792. All the over-year decline. losses were in Harrisonburg, which saw its The Harrisonburg metropolitan area’s labor force drop by 85, while the county unemployment rate was 3 percent in July, rose by 15. down from 3.5 percent in June and 4.1 In July, 63,803 people were employed percent a year earlier, according to num- and 1,989 were searching for a job, down bers released in August by U.S. Bureau of from 2,319 a month earlier. Labor Statistics. The trend is typical this time of year as The decrease reflects 330 people who high school and college graduates start to found a job in July. find employment. Harrisonburg’s unemployment was 3.6 Brian Shull, Harrisonburg’s economic percent in July and Rockingdevelopment director, said the ham’s 2.7 percent. graduates were “quickly abThe city’s rate dropped the sorbed into the workforce.” most among area localities Harrisonburg had a saw from the previous month, fallits total of employed residents July was ing by 0.7 percent from June’s slightly increase to 23,650 and probably a 4.3 percent jobless rate. Harits labor force drop to 24,544. better month risonburg also saw the largest About 160 fewer city residents year-to-year decrease as unwere searching for a job over to be employment in July 2017 was the month before, bringing the working 5 percent. number of unemployed to 894. outside. Harrisonburg’s rate is The number of unemployed still the highest among citresidents reached a peak and ies in the region, although crossed 1,000 for the first time n Casey Armstrong, Winchester, Waynesboro and this year in June. Rockingham Staunton have a significantly The estimated number of County’s smaller labor force. The rate employed county residents economic was higher than in Charlotjumped 189 to 40,153. The development director tesville, which had 2.6 unemcounty also saw increases in its labor force (41,248) and a ployment despite a slightly decrease in the number of unemployed larger labor force. Rockingham sported the second-low- (1,095). Every locality in the central Valley saw est unemployment rate for the central Valley in July. Unemployment dropped unemployment drop from June to July and from 3.1 percent in June and 3.5 percent each was at least a full percentage point better than July 2017. a year ago. “The market seems pretty strong,” Casey Armstrong, Rockingham’s economic development director, said some of Shull said. Joblessness in Augusta County was the change likely was from outdoor jobs seeing better weather in July after per- the lowest in the area, calculated at 2.6 percent, down from 3 percent in June and sistent rains in May and June. “July was probably a better month to 3.6 percent a year earlier. Shenandoah County’s unemployment be working outside,” he said. Armstrong said the county also saw rate was 2.8 percent. It was 3.2 percent new businesses open in July, such as Sug- the month before and 4.2 percent a year arite. The company, which refines sugar, earlier, tying Harrisonburg for the largest works out of the former Transprint USA year-to-year decrease in the area. Page County maintained the highest building on Pleasant Valley Road and plans to hire 35 to 40 employees, he said. rate for the area, with unemployment at Of its neighbors, Rockingham bested 3.5 percent in July. The rate was down Daily News-Record
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Luke Sharrett / Bloomberg
A job seeker shakes hands with a representative during a National Career Fairs event in Tampa, Fla., on May 23. from 3.8 percent the month before and 4.5 percent in July 2017. The trends were reflected across the state: Winchester, Staunton, Charlottesville and Waynesboro and Greene, Albemarle and Frederick counties also saw unemployment drop from July to June. Virginia’s statewide unemployment rate was 3.1 percent, down from 3.3 percent in June and 3.7 percent a year earlier. Virginia was among 11 states to see
a decrease in unemployment from July to June. Nationally, joblessness dropped to 3.9 percent from 4 percent in June. The rate was slightly lower than the 4.3 percent a year earlier. State and national unemployment rates are adjusted to account for seasonal job trends, but local figures are not. Contact Nolan Stout at 574-6278, @nstoutDNR or nstout@dnronline.com
JULY UNEMPLOYMENT UNITED STATES* VIRGINIA* HBURG METRO HARRISONBURG ROCKINGHAM AUGUSTA PAGE SHENANDOAH *SEASONALLY ADJUSTED
JULY ‘18
JUNE ‘18
JULY ‘18
2017-18 CHANGE
3.9 3.1 3.0 3.6 2.7 2.6 3.5 2.8
4.0 3.3 3.5 4.3 3.1 3.0 3.8 3.2
4.3 3.7 4.1 5.0 3.5 3.6 4.5 4.2
-0.4% -0.6% -1.1% -1.4% -0.8% -1.0% -1.0% -1.4%
SOURCE: U.S. BUREAU OF LABOR STATISTICS
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SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
Harrisonburg, Va.
Businesses Eye Health Care Costs Uncertainty In Washington Trickles Down By NOLAN STOUT Daily News-Record
HARRISONBURG — In the current political climate, businesses can be sure that one thing will trickle down from Washington — uncertainty on health care. After years of political squabbling over health care, the Affordable Care Act was passed in 2010 on party lines. But far from settling the issue, President Barack Obama’s signature legislation has come under attack by the Trump administration and congressional Republicans, who have been working to install their own plan. Each day, it seems, brings a new challenge to business owners. “When I meet with employers, I’ll get the question — what’s changing this year?” said Jonathan Coddington, employee benefits division manager for Harrisonburg-based LD&B Insurance and Financial Services.
Dr. Keith Long, a physician at Sentara East Rockingham Health Center near Elkton, works with his nurse, Deborah Gardner.
Costs
And if it’s not politics, it’s cost. According to a 2018 Gallup poll, 55 percent of Americans worry about health care
Daniel Lin / DN-R
See HEALTH, Page 10
O
O
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SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
Harrisonburg, Va.
Coddington: ‘The New Normal Is The Prices Got Awful And We Deal With It’ Health
FROM PAGE 8
and its affordability. “It always goes up, never down,” said Frank Tamberrino, president of the Harrisonburg-Rockingham County Chamber of Commerce. Coddington said premiums skyrocketed under the Affordable Care Act. Employers had to cut to policies with lower premiums and skimpy coverage to make ends meet. “The new normal is the prices got awful and we deal with it,” he said. “At the end of the day, that’s kind of what we’ve always done as an industry.” For area small-business owners like Chris Runion, president of Eddie Edwards Signs, providing his employees with a health insurance plan that works for them is a difficult challenge. Runion said premium costs have doubled over the past decade for his Harrisonburg shop and are a “significant expense.” “We need to offer benefit plans that are competitive,” he said. “We believe it’s important for our employees to be able to afford health care coverage.”
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It was tucked away in HR and as long as everything was rolling smooth, you didn’t focus on it a whole lot. [Now] every time the insurance rolls around, I think people are more likely to ask questions and look for alternatives. n Frank Tamberrino, Harrisonburg-Rockingham
County Chamber of Commerce
Coddington said uncertainty around the law has started to die down. Employers, however, are still dealing with rising deductibles and co-pays. The “expectation of change” is more prevalent, he said. Business owners are “a lot smarter about health care than they were 10 years ago,” Tamberrino said, because they have little choice. “It was tucked away in HR and as long as everything was rolling smooth, you didn’t focus on it a whole lot,” he said. “[Now] every time the insurance rolls around, I think people are more likely to ask questions and
look for alternatives.” Employers have started shifting toward health savings accounts or giving employees money to find their own insurance. “The deductibles are getting to some point where people don’t see insurance as a great benefit unless there’s a catastrophe,” Tamberrino said. Kevin Longenecker, chief financial officer for Rockingham County-based The InterChange Group, said health coverage is “an important benefit that we provide,” but costs keep rising. He said premiums rose 10 percent in 2018 and in September the
company’s provider will say how much they will rise again next year. Longenecker said he expects a double digit increase. “Every year we’ve got to go through this dance with our carrier, with other potential carriers, are we going to switch again this year?” he said. “Every year you dread this time of year because what’s my increase going to be?” Runion said another major issue is insurance companies increasing out-ofpocket expense limits. Longenecker said larger employers are able to spread risk over a larger employee pool. InterChange, which provides industrial warehousing and logistics services, has about 160 employees. But telling employees how they’ve saved money isn’t easy, he said. “The frustrating thing just as I’ve seen the health care market evolve and we’ve worked to educate ourselves and just our employees, just the complexity of the entire system has been frustrating,” Longenecker said.
See HEALTH, Page 11
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Wednesday, September 26, 2018
Dr. Keith Long, a physician at Sentara East Rockingham Health Center, examines Pam Collins of Mount Crawford. Daniel Lin / DN-R
Some Businesses Shifting To New Models Health
FROM PAGE 10
Earlier this year, Sadie Tuescher, founder and owner of Wisconsin Health Insurance Advocate LLC, wrote for the Shepherd Express newspaper that although it’s difficult to afford employer insurances, business owners know it’s the right decision. “[Y]ou know that offering health coverage is a good decision; it makes employees want to work for you, it offers vital protection, and it’s a point of pride to be able to offer it despite all that is going on,” she wrote. Unfortunately, not everyone can do it. Patti Landes, who owns the Cracked Pillar restaurant in Bridgewater, has many parttime employees but can’t afford coverage for those who work full time. “I would love to be able to provide that for my employees that work hard,” she said. “I can’t afford it as small-business owner.”
New Models
Some businesses have shifted to a “selffunded model,” Coddington said, such as the health savings account. Those models
allow employees to set aside money in a spending account for health care. Some employers use plans with high deductibles and promise to help employees meet it if necessary so that premium costs are lower, Coddington said. That’s gone a step further, he said, in insurance companies telling businesses that they’ll pass on the savings if claims are lower than expected for the year. Employers are looking to other potential solutions, Longenecker said, as costs continue to rise. He attended a presentation recently on companies providing their own health clinics at the business for employees and their dependents. That’s a little out of reach for InterChange, he said, but the idea is fascinating. “It makes viable some alternatives to health care that I never would have thought we’d be thinking about,” he said. “It is pretty incredible to me to think that the economics are at the point where something like that might be possible.”
Bridgewater, Va
See what’s possible when business banking runs this smoothly. With business booming in their two existing cafés, Travis and Corri Loan were excited to open a second location in Harrisonburg. They turned to their Union business banker Lang Smith because they knew he’d work hard to deliver the deal they needed. “He always guides us in the right direction,” says Travis. When you’re ready to grow your business, bank at Union.
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Wednesday, September 26, 2018
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
New Restaurant Coming To Generations Park By NOLAN STOUT Daily News-Record
BRIDGEWATER — More food is coming to Bridgewater’s Generations Park. Town Council unanimously approved the sale of a portion of 406 N. Main St. to Franco Benincasa for $95,000 at its September meeting. The contract is for a 4,020-square-foot portion of the 0.3-acre parcel next to Generations Park. In May, Benincasa closed Franco’s Pizza in the Harrisonburg Crossing shopping center off Burgess Road after 15 years in business there. Town Manager Jay Litten said Benincasa plans to open a restaurant on the property. Council approved a neighborhood district special-use permit for the business during the meeting. As part of the purchase agreement, Litten said the town will demolish the home on the property at a cost $5,000 to demolish the home. The restaurant, which will be 2,100
square feet, will operate on the front end of the parcel and the remaining land will be used to add 15 or 16 parking spaces for downtown and the park. The town purchased the property for $150,000 last month. “We feel good that we have gotten value for this portion of the lot,” Litten said. The $915,000 Generations Park was completed in 2015 and features a Jalapeno Southwest Grill location, ice-skating rink, storage and restroom areas. In other business, council approved a neighborhood district special-use permit for 104 N. Main St. The property was purchased for $60,000 in August and is next to the site of the town’s proposed Sipe Center, a $1.3 million movie theater and event space. The building will be used for storage and the property will be available for parking while town staff considers a use to complement the Sipe Center. Contact Nolan Stout at 574-6278, @nstoutDNR or nstout@dnronline.com
2018 Roll of Honor The Daily News-Record wishes to recognize the many businesses, industries, churches and organizations that have played a vital part in the economic growth and prosperity of our beautiful Shenandoah Valley Area.
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Bridgewater Town Council voted to sell the land at 406 N. Main St. The home on the property will be demolished to make way for a restaurant, which will be operated by the former owner of Franco’s Pizza.
DO YOU KNOW A BUSINESS LEADER UNDER 40? The Shenandoah Valley Business Journal is seeking nominations for its 2018 "10 Under 40" list of rising business leaders under the age of 40. Nominations should be submitted before Oct. 12 to svbjnews@dnronline.com.
Harrisonburg, Va.
EMU Nursing Renovates Clinical Lab
SHENANDOAH VALLEY BUSINESS JOURNAL
13
Room To Grow LEFT: Marina Baker of Appomattox (left) and Esther Ghale of Harrisonburg, both senior nursing students at Eastern Mennonite University, practice patient movement techniques. BELOW: Laura Yoder, associate professor of nursing, demonstrates listening to breathing on a simulator.
By LAINE GRIFFIN Daily News-Record
HARRISONBURG — Snowy Zhao stepped into the newly renovated clinical lab at Eastern Mennonite University on Aug. 30 and was in complete awe. Zhao, an undergraduate in the prelicensure nursing program at EMU, was one of 96 students in the clinical program who will experience the newly expanded 1,100 square-foot lab. Laura Yoder, associate professor of nursing, said the renovated space will allow an extra eight students to be admitted into the program, with another eight added in the spring. “Last year, we only had 96 admitted in the clinical program, but in two years we will have 128 students, which is a big jump for us,” Yoder said. Renovations, including equipment upgrades, cost $245,000 and were completed at the end of August. The cost to upgrade the expanded lab, which is an addition to the Lisa Haverstick Memorial Lab, will be paid through private donations and grants. Previously, lab had seven beds. With the additional space, there will be 12 stations. Being able to work in the enlarged space and having more simulators to practice on will give Zhao and her classmates more hands-on learning, she said. “Time is precious in the world of nursing,” she said. “Whenever students were trying to learn and practice before their tests, there just wasn’t enough room or simulators for us to practice on.” Zhao said the renovated and updated lab will cut much of the learning time in half, an idea that Yoder echoed. “The environment was so cramped, but today I could tell the students were more relaxed and efficient because they had more space,” she said. Among many equipment upgrades, the program is having four nursing simulators custom made for the students to practice live scenarios on. The simulators had yet to arrive at the campus when the renovated lab opened but were expected soon. Two simulators are “high-risk fidelity,” which allows their “chest” to move up and down. The other two custom-made simulators will be “mid-risk fidelity,” which
Wednesday, September 26, 2018
DN-R file photos
still allow the students to hear breathing sounds but won’t see much chest movement, according to Yonder. The lab only has one mid-, one high- and two low-fidelity simulators at the moment. Yoder said once the new simulators arrive, their custom design will allow students to manage more difficult clinical situations and prepare them for real-world encounters. Eight beds with cabinets and overbed tables, eight oxygen hookups and IV pumps and other pieces of new equipment already have been placed in the new lab. Of the $245,000 needed to cover the cost of improvements, about $86,000 has been raised, according to an EMU press release, with fundraising still going on to cover the remaining cost. The nursing simulation lab memorializes Lisa Haverstick, a 1991 graduate who died in 2004 after a three-week battle with pancreatitis. The private donations, along with a grant from Anthem Blue Cross and Blue Shield, helped pay for the lab’s new equipment and technology. The university offers a prelicensure, four-year bachelor’s degree and 15-month accelerated second degree program, according to the press release. According to EMU, nearly every one
of the program’s graduates are offered positions during their senior year. About 80 percent of them find work at regional health care facilities, including Sentara RMH, Augusta Health and the University of Virginia Hospital System. “This program here at EMU has a good
reputation and I know with these added benefits, it will provide all of us the best education possible to be successful once we leave here,” Zhao said. Contact Laine Griffin at 574-6286 or lgriffin@dnronline.com
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SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
Harrisonburg, Va.
Local Ledger Central Valley Area Home Sales
Retail Sales (in millions)
Median Price Aug. 2018
Aug. 2017
Pct. Change
Harrisonburg
$201,000
$183,000
9.84%
Rockingham
$210,000
$220,000
-4.55%
Shenandoah
$207,500
$187,400
10.73%
Page
$175,000
$145,000
20.69%
$217,244**
n/a
n/a
Augusta*
The Shenandoah Valley Business Journal is seeking nominations for its 2018 "10 Under 40" list of rising business leaders under the age of 40. Nominations should be submitted before Oct. 12 to svbjnews@dnronline.com.
Aug. 2018
Aug. 2017
Pct. Change
Harrisonburg
11
34
-67.65%
Rockingham
15
43
-65.12%
Shenandoah
72
137
-47.45%
Page
86
90
-4.44%
44**
n/a
n/a
Augusta*
$108.3 $61.1 $37.4 $21 $49.4 $36 $43
Source: Weldon Cooper Center for Economic and Policy Studies
Unemployment
Days on Market
DO YOU KNOW A BUSINESS LEADER UNDER 40?
Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
July 2018
Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
July 2018
June 2018
July 2017
3.6% 2.7% 2.8% 3.5% 2.6% 2.8% 3.2%
4.3% 3.1% 3.2% 3.8% 3.0% 3.2% 3.6%
5.0% 3.5% 4.2% 4.5% 3.6% 3.8% 4.2%
Source: Virginia Employment Commission
Units Sold Aug. 2018
Aug. 2017
Pct. Change
Harrisonburg
41
39
5.13%
Rockingham
73
81
-9.88%
Shenandoah
56
70
-20.00%
Page
21
17
23.53%
Augusta*
136
n/a
n/a
*Combined figures for Augusta, Staunton and Waynesboro. **Average sale price, days on market Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence; Greater Augusta Association Of Realtors
Labor Force Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
July 2018
June 2018
July 2017
24,544 41,248 21,760 11,865 37,921 12,135 10,506
24,629 41,233 21,688 11,984 37,844 12,129 10,494
24,386 40,722 21,613 11,865 37,207 11,898 10,304
Source: Virginia Employment Commission
Harrisonburg, Va.
SHENANDOAH VALLEY BUSINESS JOURNAL
Wednesday, September 26, 2018
15
Machines Forecast To Create More Jobs Than They Displace To Create 133 Million New Jobs While Only 75 Million Will Be Lost growth for the next four years. These tech developments, according to the report, will arrive in tandem with broader socioeconomic trends, such as the expansion of the middle class in developing countries, national economic growth and new energy policies. But other social and political trends may hurt business prospects, the report said. Those factors include heightened protectionism, the effects of climate change, cybersecurity threats and increasingly aging societies. The World Economic Forum compiled the report by surveying 313 business executives who together represent 15 million employees from around the world.
The Washington Post
In the next four years more than 75 million jobs may be lost as companies shift to more automation, according to new estimates by the World Economic Forum. But the same projections have an upside: 133 million new jobs will emerge during the same time period, as businesses develop a new division of labor between people and machines. The Future of Jobs Report arrives as the rising tide of automation is expected to displace millions of American workers in the long term and as corporations, educational institutions and elected officials grapple with a global technological shift that may leave many people behind. The report, published Sept. 17, envisions massive changes in the worldwide workforce as businesses expand the use of artificial intelligence and automation in their operations. Machines account for 29 percent of the total hours worked in major industries, compared with 71 percent performed by people. By 2022, however, the report predicts that 42 percent of task hours will be performed by machines and 58 percent by people. Previous research offers mixed forecasts on the effects of automation on jobs. It’s unclear if the new jobs created by innovative combinations of automation and human workers will offset the displacements. But the World Economic Forum report confirms that a key challenge for grappling with the future of work will be equipping staff with new skills and fostering workplace flexibility. “To prevent an undesirable lose-lose scenario — technological change accompanied by talent shortages, mass unemployment and growing inequality — it is critical that businesses take an active role in supporting their existing workforces through reskilling and upskilling, that individuals take a proactive approach to their own lifelong learning and that governments create an enabling environment, rapidly and creatively, to assist in these efforts,” the report said. The report’s projections mainly represent roles gained and lost within large multina-
We Love Small Business! Upcoming Events ValleyTechCon.18 Udit Kilshrestha / Bloomberg
Robotic arms assemble an SUV on the production line at Mahindra & Mahindra's facility in Chakan, Maharashtra, India, in April. The company is India's largest SUV maker. tional corporations. Another analysis that focuses on small and medium business or certain sectors, such as health care and education, may show greater potential for new jobs, according to the report.
The report said that technological advances in four areas — the spread of highspeed mobile Internet, artificial intelligence, the adoption of big data analytics and cloud computing — are expected to drive business
Sept 28, full day, Harrisonburg
21st International Festival
Sept 29, noon-6:00pm, Harrisonburg
SWaMFest 2018
Oct 3-4, Harrisonburg
Business Smarts
Oct 12: Speaking of Public Speaking 8:00-9:30am, Harrisonburg
Retail & Restaurant Assistance
Oct 15-16 by appointment, Page Co.
Drive a Holiday Rush to your Business Google Livestream
Oct 17, noon-1:30pm, Harrisonburg
ICAP (Innovation Commercialization Assistance Program) Oct 19, 26, & Nov 2, Harrisonburg
Start Smart Workshops
Oct 10, 1:00-3:00pm, Harrisonburg Oct 25, 2:00-4:00pm, Verona
PORCHES, ARBORS & PERGOLAS, HANDICAP RAMPS
See details of these & more at ValleySBDC.org
Small Business Development Center
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Wednesday, September 26, 2018
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.