Shenandoah Valley Business Journal - June 2019

Volume 20, No. 8, June 26, 2019

Spotlight

on:

URING/ T C A F U MAN LOGY O N H C E T

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SHENANDOAH VALLEY BUSINESS JOURNAL

Wednesday, June 26, 2019

The Shenandoah Valley Business Journal is a monthly publication of the Daily News-Record, 231 S. Liberty St., Harrisonburg, VA 22801.

Inside This Issue

Contact us

Focus Section: Manufacturing/Tech

By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803

■ Automation Equation............................................ Page 6

Other Business News ■ Shenandoah Growers To Invest $100M In Va...... Page 3 ■ Rep. Cline Introduces Bankruptcy Changes Bill...... Page 4

Editorial Staff

■ Housing Forum Covers Improvements, Needs...... Page 5

Publisher: Craig Bartoldson

■ Biz Leaders Learn About Workforce Diversity...............Page 8

By email: svbjnews@dnronline.com By fax: 540-433-9112

■ Toiling On The Soil................................................. Page 9 ■ Hotel Feasibility Study Moves Forward................ Page 10

Managing Editor: Clarissa Cottrill

■ Rubbermaid Closing Metal Trash Can Division...... Page 10

Staff Writers: Ian Munro

Columns

Contributing Photographers: Ian Munro, Scott Mason

■ Leadership with Robert McFarland................. Page 3 ■ Investments with Matthew R. Frakes.............. Page 4

Harrisonburg Attorney Callahan Five Attorneys From Flora Pettit Appointed To State Bar Board Named Virginia Super Lawyers HARRISONBURG — Five attorneys from local firm Flora Pettit have been named to the 2019 Virginia Super Lawyers list, a Thomson Reuters business.

According to a press release, two of Flora Pettit’s attorneys have been recognized for inclusion in the “Virginia Super Lawyers” list and three of its attorneys have been named to the “Virginia Rising Stars” list.

Patrick Asplin (business/corporate) and Cathleen Welsh (employment and labor) were named Super Lawyers.

Brian Craddock (business/corporate), Seth Ragosta (family law) and Andrew Stockment (intellectual property) were named Rising Stars.

— Staff Reports

By phone: 540-574-6281 (news) 540-574-6223 (ads)

On The Cover:

■ Financial Focus with Kathy Armentrout.......... Page 5

HARRISONBURG — Local attorney Quinton Callahan has been elected to serve on the Board of Governors of the Virginia State Bar’s Construction Law and Public Contracts Section.

The term is for three years, according to a press release.

The board is responsible for the operations of the section, which provides research, news and other information to Virginia construction and government contract law practitioners through an annual seminar, other continuing legal education programs, newsletters, its website and reference manual, the release says.

Callahan, president of the Harrisonburg-Rockingham Bar Association and an attorney with Harrisonburg firm Clark and Bradshaw, practices in areas of construction, business, banking and financial institutions.

Harrisonburg, Va.

Ian Munro / DN-R Holly Morris, a manufacturing engineering technician with Virginia Panel Corp., reviews builds on the floor of the wiring department of the Waynesboro company.

not have as many hospital choices as those in Fairfax County or Richmond, Sentara RMH can meet their needs, Hahn said.

“It’s incumbent on us to be the best we HARRISONBURG — Sentara RMH received the Magnet recognition, the highest can be and this is just a little way to signify national honor for nursing standards, for the that we do that,” she said. second time over five years.

To receive Magnet recognition, a health — Ian Munro care provider must apply first to the American Nurses Credentialing Center Magnet Recognition Program, which gives the award. Stable Craft Brewing To Then, written documentation about the Expand With Cider Investment organization’s performance, an on-site visit WAYNESBORO — Stable Craft Brewing and a review from the Magnet commission will be adding craft cider to its offerings. is required before the award is given.

The Augusta County farm brew“Really and truly, it’s about the patient ery plans to invest $200,000 and open a level outcomes and quality metrics,” said Donna Hahn, chief nurse executive at Sen- farm-winery operation and plant 75 to 150 apple trees on the farm over the next two tara RMH. Less than 10% of health care organiza- years, according to a press release.

The expansion will include six new jobs tions in the United States have received to its existing workforce of 32 employees.

Magnet recognition.

The award is a symbol that even though Harrisonburg and Rockingham County may — Staff Reports

Sentara RMH Recognized For Nursing Performance Standards

Harrisonburg, Va.

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Leadership Starts With Proper Perspective L

eadership requires understanding where you’re starting from and where you want to end up.

By having a proper perspective of how far you need to go, you can chart your course. Otherwise, you will end up like Alice taking directions from the Cheshire Cat in Lewis Carroll’s classic “Alice in Wonderland.”

“Would you tell me, please, which way I ought to go from here?”

“That depends a good deal on where you want to get to,” said the Cat. “I don’t much care where —” said Alice.

“Then it doesn’t matter which way you go,” said the Cat. If you don’t know where you’re going, then any road will get you there. And too many business leaders function with the Cheshire Cat’s directions.

If you don’t have a good perspective of where you are and where you are going, then you won’t be able to get to your destination.

While that sounds obvious, too many businesses don’t have a process for getting to where they want to go.

Here’s a three-step process to gain the perspective you need to chart the course for your business.

1. Being self-aware individually and organizationally To determine your starting point, it is important for you as a leader to have both individual and organizational self-awareness. Without being both personally and organizationally selfaware, you will not be able to see clearly to get to your destination.

You as a leader must be willing to acknowledge where you are weak and where you are strong, both personally and organizationally. If you are not willing or able to publicly admit the company’s organizational weaknesses — along with your personal weaknesses — then you are not yet the kind of leader your team needs to take them where they should go. If you as a leader are unable to assess

your personal or organizational weaknesses, you will be wise to ask others what they are. Only with that ability to see things clearly can you chart your course.

In his book “Good to Great,” Jim Collins explains how a strong leader exhibits Level-5 leadership, and a strong organization understands the “Hedgehog Concept.” A Level-5 leader is a paradoxical mix of personal humility and professional will, and the Hedgehog Concept involves knowing what your organization can be the best in the world at. If you cannot honestly and accurately assess your personal strengths, then you will be fooling yourself as a leader.

Without collectively recognizing your organization’s strengths, you will not be able to see where you could go as a team.

2. Understanding that you aren’t always seeing clearly If you don’t have a willingness to receive an outside perspective, then you are limiting your ability to chart your course forward.

Leadership Robert McFarland

You will end up having a skewed view of reality because you will prevent yourself from seeing things as they really are.

Do yourself a favor and make sure you are allowing yourself to be challenged by someone, whether that is your board, your leadership team, or a coach. Make sure you can receive counsel from those who can help you see clearly what is going on around you.

3. Being willing to see things differently It is important to challenge your sources of information. It is essential to be willing to open yourself up to seeing things in a different way. The way you have seen

the world up to this point may not be how you need to see the world going forward. The way you see yourself and your organization may well be preventing you from making progress. The thinking that brought you to where you are is often not the thinking that will bring you to the next level.

It is important to get outside of yourself — both personally and organizationally.

If you are not allowing someone to speak into your life and the life of your organization, then you are missing an opportunity to become more of what you can be.

The process of seeing clearly involves being selfaware, understanding that

you may not be seeing clearly, and being willing to see things differently. Only through going through this process continuously — usually with the aid of outside counsel — will you be able to make the progress you want with your business.

Robert McFarland is the author of the bestsellers, “Dear Boss: What Your Employees Wish You Knew” and “Dear Employee: What Your Boss Wishes You Knew.” Robert is also President of Transformational Impact LLC, a leadership development consultancy helping companies improve their employee cultures to make the companies healthier, more productive, and more profitable.

Shenandoah Growers To Invest $100 Million In Virginia

By IAN MUNRO Daily News-Record

HARRISONBURG — Shenandoah Growers, an indoor agriculture company, is undergoing a major expansion to its location in Harrisonburg, which is part of a $100 million investment in the company’s three locations in Virginia over the next year.

The facility, off U.S. 11, packages, receives and ships out produce from the Shenandoah Growers facility off of Koehn Drive, east of Lacey Spring in Rockingham County.

The addition is not for new

packaging space, but for agriculture space.

Shenandoah Growers is building a “next-generation indoor bio-farm” onto the packaging facility, said Gilberto Dominguez, the vice president of operations on the East Coast.

“You’ll have seeding, germination, plug production, nursery and final grow out and harvesting,” he said.

The company uses a bioponic, or natural soil-based, approach to indoor plant cultivation.

Basil, for instance, is the company’s most popular product, with almost 50% of production going to the peppery-sweet cu-

linary herb.

They also grow mint, cilantro, parsley, rosemary, thyme and oregano, but “basil is king,” Dominguez said.

“Nature has spent hundreds of millions of years evolving to give us tasteful, sustainable growing systems — what we do is bring that indoors,” he said.

The new setup for the facility is part of a companywide initiative.

The new indoor farm “just so happens to be located right next to our packing facility, so it will literally go across the wall and be packed as soon as it’s harvested,” Dominguez said.

And freshness isn’t the only advantage to the new setup, he said.

As harvesting and packaging can be done in the same facility, it saves costs on transportation and reduces greenhouse gas emissions.

“This is the model for start to finish,” Dominguez said. “From the biofarm to the customer — this is going to be our setup.”

And the company is looking at making similar additions to its other packing facilities across the United States within the next five years, he said.

The company has 13 locations in the United States, including

Texas, Indiana, Colorado, Arizona and Washington.

At first, the new addition will only require 10 more employees, but that number will likely grow, Dominguez said.

The company is a large employer in the area, with 300 employees in the Valley and 150 in the Harrisonburg facility. “ We ’ r e l o o k i n g a t t h e s e next-generation megafactories that will employ 200 teammates at these facilities,” Dominguez said.

Contact Ian Munro at 574-6278 or imunro@dnronline.com. Follow Ian on Twitter @IanMunroDNR

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Harrisonburg, Va.

Four Ways To Invest More Confidently In A Volatile Market

hen financial markets fluctuate, even the calmest investors can start to question their financial strategies. But volatile markets can present opportunities, says Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute (WFII).

“Financial markets are frequently volatile — that’s their nature,” she says. “Over longer periods of time, that volatility can add up to attractive portfolio growth.”

McMillion shares an analogy that compares this worry to seasickness: “If you stare at the waves directly ahead of you (the current financial market), the water may look bumpy and turbulent, and you might feel ill at ease. However, if you look outward at the horizon (your long-term investment goals), the ocean as a whole appears to be on a fairly even keel.”

In addition to focusing on your financial horizon, here

are some strategies you can use to help weather economically turbulent times.

1. Match your investments to your time horizon. The simplest way to feel more comfortable about your investments is to align them with your financial calendar, no matter what happens in the financial world this month or year. For example, do you need some of your money fairly soon, or want it close at hand in case of an emergency? If so, McMillion says you should consider investments such as cash holdings and shortterm bonds that shouldn’t lose much, if any, value over the short term.

On the other hand, if you won’t need some of your investment money until you retire multiple years in the future, equities or longer-term bonds are worth a closer look. Those investments carry more risks but also offer potentially better returns.

2. Know what to expect from your assets. Some investors lose confidence because they don’t fully understand how their investments work. In that case, McMillion says, some knowledge of typical asset behavior is a good thing.

Consider reading up on different types of investments and asking questions of your financial advisor.

Once you know how your investments are more likely to perform in certain financial markets, you can help ensure that your investment strategy is in line with your tolerance for risk.

3. Tune out the noise. By “noise” McMillion means the constant barrage of financial reports from the 24/7 news media. “It’s common for the financial markets to temporarily get a little bit messy as they sort through the current news cycle,” she says.

However, investors usually don’t need to react to the everyday financial news,

Investments Matthew R. Frakes

no matter how topsy-turvy things may seem. “Remember: The U.S. news tends to report on a very small slice of available investments, particularly U.S. large company stocks,” she says. “Your portfolio, if it’s diversified as it should be, probably isn’t going up and down to the same degree as these stocks.

Your portfolio changes are probably much more moderate.”

4. Regularly revisit your plan. There’s no such thing as a completely set-it-andforget-it investment strategy, McMillion says. It’s

always smart to check in regularly with your investment advisor. “Your life circumstances may change, or your financial goals could shift,” she says. “You’ll feel much more confident that your investments are doing their job if you review them regularly with your advisor.”

Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.

This article was written by/for Wells Fargo Advisors

and provided courtesy of Matthew Frakes, Financial Advisors in Harrisonburg, VA at 540-801-3211.

Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/ MAY LOSE VALUE Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and nonbank affiliate of Wells Fargo & Company. © 2019 Wells Fargo Clearing Services, LLC. All rights reserved.

Rep. Cline Introduces Bankruptcy Changes Bill

By IAN MUNRO Daily News-Record

U.S. Rep. Ben Cline, R-Lexington, holds a town hall on June 17 with Rockingham County residents at the LinvilleEdom Ruritan Hall.

DN-R File

HARRISONBURG — U.S. Rep. Ben Cline, R-Lexington, along with a group of bipartisan legislators, introduced the Small Business Reorganization Act to simplify the bankruptcy process for small businesses on June 18.

“The goal of bankruptcy is not to close small businesses,” Cline said. “It is to help keep them open.”

The changes presented in the bill will make the bankruptcy filing process easier for businesses with less than

$2.5 million in debt, Cline said.

Bankruptcy proceedings are to sort out the repayment or discarding of debt and are handled by federal courts, according to the United States Court System online portal.

There are multiple types of bankruptcies, commonly referred to as chapters, each with different purposes for individuals, municipalities, businesses and family farmers and fishermen.

Businesses can file for Chapter 7 bankruptcy, for liquidation purposes, or for

Chapter 11 bankruptcy, for reorganization purposes.

The bill has support from Democrats and Republicans.

“It’s refreshing to be able to work with colleagues on the other side,” Cline said.

Specifically, Rep. Steve Cohen, D-Tenn., House Judiciary Ranking Member Doug Collins, R-Ga., and chairman of the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law Rep. David Cicilline, D-R.I., all introduced the bill along with Cline.

See CLINE, Page 8

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

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Smart Financial Moves For Every Stage Of Life R

egardless of what stage of life you’re in, you must make financial and investment decisions that will be with you for the remainder of your years. But the moves you make when you’re just starting out in your career may be quite different from when you’re retired. So, let’s look at some of these moves, stretched out across your lifetime.

In your 20s and 30s: During this period, you should strive to place yourself on a sound financial footing by taking steps such as reducing, and hopefully eliminating, your student loans and embarking on saving for retirement through investments such as a 401(k) and IRA. You also might buy a home, which offers some financial benefits, but be care-

ful not to become “house poor” by devoting too much of your monthly income to mortgage payments. If you have young children, you might also want to start saving for college, possibly through a 529 plan, which offers tax benefits, high contribution limits and the ability to switch beneficiaries, as needed. And if you do have a family, you’ll certainly need to maintain adequate life insurance.

Also, since you’re at the early stages of your working life, you should chart a longterm financial and investment strategy with the help of a financial professional.

Your strategy should encompass your important goals, risk tolerance and time horizon. And you’ll want to revisit your strategy regularly to accommodate changes in your life and financial sit-

uation.

In your 40s and 50s: These are the years in which your career advances, leading to bigger salaries. The more you earn, the more you should be putting away in your 401(k) or other employer-sponsored retirement plan, along with your IRA. During the middle-to-end of this particular period, you might finish helping pay for your child’s higher education — which should free up even more money to put away for retirement. You also may want to consider long-term care insurance, which can help protect you against the devastating costs of an extended stay in a nursing home.

In your 60s, 70s … and beyond: Once you’re in this age range, chances are pretty good that you’ll either

Housing Forum Covers Improvements, Needs

By IAN MUNRO Daily News-Record

HARRISONBURG — Would you print a house?

Three-dimensional concrete printers are one of the ways builders can reduce costs and make homes affordable for buyers, according to Michael Urban, director of homeownership lending for Virginia Housing Development Authority.

Urban was one of the speakers at the Harrisonburg-Rockingham Realtors Association and Housing Virginia’s Rural Housing Forum focused on affordability of rural homes, which took place at the Terrace at Rocktown in Harrisonburg

on June 14.

There is a severe nationwide shortage of houses available under $200,000 for first-time buyers.

There has been a 38% drop in the number of homes for sale in Harrisonburg over the past year, and a 63% drop if you consider the past three years, according to data from Scott Rodgers, the creator of HarrisonburgHousingToday.com and an associate broker of Funkhouser Real Estate group.

“The goal is to update folks in different regions around the state about what is happening at the state and national level in housing,” said Erica Sims, senior associate at Housing

Virginia, an organization focused on helping localities create affordable housing.

“I think the most positive thing I take away from this meeting was you had all sectors here in the room,” she said.

The approximately 40 guests included government staff, realtors, developers and social service group representatives.

“There is unanimity around the need for affordable housing for a wide range of incomes,” Sims said.

This range of incomes include those from below the poverty line and the elderly to working families trying to

See HOUSING, Page 9

Financial Focus

Kathy Armentrout retire soon or are already retired. (Although, of course, you may well want to work part-time or do some consulting.) However, you certainly haven’t “retired” the need to make financial and investment decisions, because you’ll have plenty, including these: When should I take Social Security? Will my investment portfolio provide me with enough income to help keep me ahead of inflation? How much can I af-

ford to withdraw each year from my retirement accounts without outliving my resources? Again, a financial professional can help you deal with these and other issues.

Also, if you haven’t done so, now is the time to draw up your estate plans, so you can leave the type of legacy you desire — one that provides for the next generation (or two) and the charitable organizations you support.

You’ll need to work with a legal professional to create estate planning documents and arrangements appropriate for your needs.

You will spend a lifetime making financial and investment decisions — so put in the time and effort, and get the help you need, to make the best decisions you can.

This article was written

by Edward Jones for use by your local Edward Jones Financial Advisor.

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Harrisonburg, Va.

Automation Equation How Businesses Will Train (Or Retrain) The Future Workforce

By IAN MUNRO Daily News-Record

HARRISONBURG — Though robots aren’t chauffeuring us around in hover cars, a different reality has taken hold, one in which they cannot be ignored.

Automation and technology is expected to displace millions of workers in the coming years, and is expected to hit especially hard in the manufacturing sector.

In response, the Virginia government is working on solutions to reducing the number of potentially lost jobs.

A major asset to keeping employees is retraining services, said Peirce Macgill, assistant director of economic development for Harrisonburg.

“Manufacturing is doing very well, but automation continues to

grow and we need to be able to assist companies in adjusting their workforce to automation,” he said.

Retraining a company’s workforce is a major way to keep jobs as more and more processes get automated, Macgill said.

More than one-third of consumers said they lacked proficiency in at least one skill or subject in a current or previous job, according to a survey of 1,000 people by edX, an online course provider.

One in four of the respondents asked an outside resource on how to use a piece of technology at work and nearly half of the respondents admitted they were not comfortable asking their employer to help pay for learning costs.

Most respondents, approximately 41%, felt it was the individual’s responsibility to be prepared for the “jobs of the future,” while 33% felt

it was the employer’s responsibility.

Smaller percentages of respondents, 16% and 9%, felt it was higher education or the government’s responsibility, respectively, to prepare workers for future jobs, according to edX. Job loss and gain estimates regarding automation are similar between men and women, but the job sectors for each differ, according to data from a report from the McKinsey Global Institute, a management consulting firm.

An average of 20% of women are expected to be displaced, while an average of 21% of men are expected to be displaced by automation between 2019 and 2030, according to the same report.

Retraining serves workers in more ways than just helping them to keep their job, Macgill said.

“A lot of time with these new

Photos by Ian Munro / DN-R

Holly Morris, a manufacturing engineering technician with Virginia Panel Corp., reviews builds on the floor of the wiring department of the Waynesboro company. She has worked on manufacturing floors receiving hourly pay before, but she went to Blue Ridge Community College, which “really opened a lot of doors for me,” she said. Morris is now a salaried employee. skills, they can increase their wages with their new technological knowledge,” he said.

The notable, long-term drop in unemployment has forced employers to compete against each other for workers and encouraged them to increase

automation.

The Shenandoah Valley and Virginia are well positioned for incoming business with grants and a prepared labor force, Macgill said.

See AUTOMATION, Page A7

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Jesse “Jay” Marshall Jr., left, and Nick Coffey, right, assemblers at Sumitomo Drive Technologies Gearbox Center of Excellence in Verona, attach a cover to a five-ton overhead crane before installing it on a gearbox. Almost 20 Sumitomo shop employees received training on how to use the new cranes, according Dan Rosseljong, a product manager for Sumitomo Drive Technologies.

Automation

FROM PAGE A6

Two decades ago, land was the paramount concern of businesses when choosing where to locate, he said.

Now, the size and capabilities of an area’s labor force are on the forefront of decisions businesses make on where to locate and where to expand, Macgill said.

The manufacturing industry between Winchester and Roanoke employs approximately 60,000 people, whose average salary is $42,000, according to Brett Vassey, president and CEO of the Virginia Manufacturers Association.

The economic output of the region’s manufacturers totals about $27.2 billion per year, he said. And the sector contributes $673 million to Virginia revenue and $623 million to local revenue each year.

“It’s a pretty substantial impact,” he said.

Most of the production is in food and beverage products, where automation takes place more “sporadically” than other types of manufacturing, Vassey said.

But automation is occurring, he said.

InterChange, a logistics company in Mount Crawford, is expanding its operations by

building a new cold storage facility, where new semi-autonomous equipment will be used.

“We started exploring semi-automation, which we hope will become fully automated equipment, as we de-

veloped our new cold storage facility,” said Chris Thompson, vice president of business development for InterChange.

Over the past year or

See AUTOMATION, Page 8

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Automation

Business Leaders Learn About Workforce Diversity Opportunities

FROM PAGE A7

so, the company has been searching for equipment that can still operate despite the low temperatures.

“It’s going to require a good deal more training and retraining,” Thompson said.

And that includes both experienced employees and new hires.

Many Valley companies try to obtain grants to help with the costs of training or retraining their workforce.

The most popular program of which is called the Virginia Jobs Investment Program, which has been obtained by a variety of Valley manufacturers, including Sumitomo Drive Technologies in Verona, Route 11 Potato Chips in Mount Jackson, Hershey in Stuarts Draft, and InterChange.

Between 2014 and 2019, the Virginia Jobs Investment Program, also called VJIP, has supported 134 economic development projects, which includes a total capital investment of $42.36 billion in the Shenandoah Valley and the creation or retraining of over 14,000 jobs, according to data from Suzanne Clark, the communications director for marketing and communications for the Virginia Economic Development Partnership.

VJIP is the second oldest economic development incentive in Virginia and is set to have supported the training or retraining of 8,000 employees in Virginia during fiscal year 2019, which ends on June 30.

Within the VJIP umbrella are two programs — one for supporting new job creation and one for supporting retraining of employees.

For both of these training purposes, many future employees go to the Valley’s various educational centers including universities, technical schools and workforce development boards, said John Downey, president of Blue Ridge Com-

Harrisonburg, Va.

By IAN MUNRO Daily News-Record

Clyde Conner Jr., an assembler at Sumitomo Drive Technologies Gearbox Center of Excellence in Verona, lowers an upper lid onto a unit using one of the company’s new overhead 20-ton cranes. Sumitomo began work at this new facility in May of 2018. munity College.

Almost all of the local manufacturers have had employees trained or retrained at BRCC, he said.

And though manufacturing is taking more traditional, repetitive tasktype jobs away, there are still many jobs available, he said.

“Today, all those repetitive tasks are automated; manufacturing consists more of technicians who are able to keep the automation going,” Downey said.

These new jobs are all in high-demand, as the unemployment rate stays low, he said.

And this is a great opportunity for those who do not have enough paid work or want to make use of their skills to get more training to take these more lucrative positions, Downey said.

“The jobs in manufacturing, aviation maintenance and health care are so lucrative,” he said. “It really is a good investment to get the training they need in a job where they are underemployed.”

Human beings are one the most important asset to modern business, said U.S. Sen. Mark Warner, D-Va. “If you look back 30 years ago, tangible products in companies amounted to about 80% of a company’s

assets,” he said. “Today, in 2019, intangible property — things like human beings and intellectual property — account for 85% of the value of a company.”

However, investment in humans is not tabulated the same as investment in automated systems.

“You spend $5,000 on a robot in today’s business world, you get a tax credit.

You get an asset you can put on your balance sheet.

You get something you can report on as a public company,” Warner said.

But the same is not true for investing $5,000 in employee training, he said.

Warner is proposing a tax incentive to encourage companies to further train their workforce and coupling it with movement from the Securities and Exchange Commission to have public companies report their investment in their employees.

Warner has also gone to the U.S. Financial Accounting Standards Board to start conversations about looking at investment in human capital as an asset on a balance sheet.

“Let’s at least treat investment in human beings as well as stuff,” he said.

Contact Ian Munro at 574-6278 or imunro@dnronline.com. Follow Ian on Twitter @IanMunroDNR

HARRISONBURG — Dozens of business leaders learned about the tax grants and incentives available to those who hire a diverse workforce at a Harrisonburg-Rockingham Chamber of Commerce event at the Lucy F. Simms Continuing Education Center on June 5.

The first-of-its-kind chamber event, “Diversity in Business: Diversify Your Workforce to Strengthen Your Business,” featured various speakers who touched on a number of topics, including staffing, diversity and incentives.

The national unemployment rates for workers with and without disabilities have hit historic lows, at 3.2% and 6.3%, respectively, in April. This labor shortage forces employers to look harder and wider at the pool of candidates to bridge their labor gap.

It also increases the competition between employers for workers.

This often results in a more diverse workforce, including veterans, workers with disabilities, and those of different backgrounds, just to name a few.

The full list of characteristics protected under fed-

Cline

FROM PAGE 4

“I would say that one of the great challenges in this institution is building relationships across the party divide, and I’ve worked really hard in the first six months to try and build those relationships,” Cline said.

Bankruptcy reorganization is a fairly frequent occurrence, Cline said, with

Ian Munro / DN-R

Aline Jackson-Diggs, placement counselor for the Virginia Department of Aging and Rehabilitative Services, speaks to the crowd about the On-The-Job Training Reimbursement Program available to employers through the department during a June 5 presentation on tax incentives for staffing a diverse workforce. eral or Virginia anti-discrimination laws include race, color, religion, sex, sexual orientation, gender identity, national origin, disability, age, veteran status, marital status and lactation.

Diversity can be a strong driver for competitiveness in firms, according to data from Forbes.

Companies in the top quartile for gender and ethnic diversity outperform competition by margins of 15% and 35%, respectively, according to Forbes.

On top of the competition incentives, there are

economic incentives as well.

“Do Work Incentives Work?” was the name of the presentation given by Aline Jackson-Diggs, placement counselor for the Virginia Department of Aging and Rehabilitative Services, Jennifer Kester, assistant human resources director of Recruitment and Employment Services at James Madison University, and Chase Martin, a human resources specialist for the city of Harrisonburg.

Some of the programs the presenters told the

recent changes in policy during the mid-1990s and early 2000s.

Cline said he was involved with bankruptcy reforms during his time as staffer for GOP Rep. Bob Goodlatte in the early 2000s.

Goodlatte was the representative for Virginia’s 6th District from 1993-2018.

Also this year, Sen.

Chuck Grassley, R-Iowa, and another group of bipartisan legislators put forward changes to bankruptcy filing for family farms, with the same goal as Cline’s Small Business Reorganization Act, but with different details.

See DIVERSITY, Page 10

Contact Ian Munro at 574-6278 or imunro@dnronline.com. Follow Ian on Twitter @IanMunroDNR

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Wednesday, June 26, 2019

Toiling On The Soil

Cave View Farm maintains 575 milking cows and 575 replacement heifers that operate on Gerald Garber’s farm. Garber is currently taking care of more than 30 calves.

Tour Offers Look At How Local Farmers Tackle Water Quality

By JESSICA WETZLER Daily News-Record

HARRISONBURG — As part of its three-day forum, the Regional Agriculture Networking Forum sponsored by the National Fish and Wildlife Foundation allowed those attending to get a first-hand glimpse of practices being done on the ground by farmers to reduce water pollution.

The forum brings together local farmers and producers as well as members of the Environmental Protection Agency and state officials to share ideas for scaling up nutrient and

Housing

FROM PAGE 5

find their first home.

“That’s a real shift to have that consensus and that’s sort of a building block to have these discussions and to make hard decisions around zoning, policy changes and funding,” she said.

Zoning in particular has improved since the last Rural Housing Forum, said Bob Hill, CEO of the Harrisonburg-Rockingham Association of Realtors, citing the pending R-8 zone in Harrisonburg which would allow for smaller lot sizes than previously created in the city.

“Both the county and the city planning departments have become very flexible in allowing zoning to try and reduce costs for housing,” he said.

However, the creation of new affordable housing stock is not keeping pace with the number of buyers, Hill said.

One way to increase the stock of affordable homes is to reduce the costs asso-

sediment reductions in the agricultural sector.

More than 50 people took part in June 19’s farm tour and paid a visit to the Coffman Farm operated by the Coffman family, the Riverhill Farm operated by Glenn and Nelson Rodes and the Cave View Farm operated by Gerald Garber.

Each farm provided different examples of practices and best management programs that were funded by various grants to improve water quality.

participated in protection and restoration practices including livestock exclusion, buffers and instream habitat improvements.

Since starting the Trout Unlimited Beaver Creek Watershed Restoration project in 2010, conditions along Beaver Creek have extensively improved, bringing back native brook trout.

“This site is within the eastern brook trout priority habitat area and provides a good example of how water quality improvements [such as] polCoffman Farm lution load reduction and The Coffman family has habitat improvements can ciated with building a traditional “stick-built” home, Hill said.

“The upfront cost of just the land itself is a stumbling block,” he said.

Other development aspects such as curbing, sidewalks, infrastructure and labor start development costs at high levels, Hill said.

And thus, developers building homes in the $150,000 to $200,000 can’t make a profit, he said. “[Developers] are not going to do it just to break even,” Hill said.

Manufactured homes can offer reduced build time and production costs, among a variety of cost-saving advantages, which can lead to lower prices and come in a variety of shapes and sizes.

“These homes are designed to fit into neighborhoods,” Urban said.

However, manufactured homes still have some issues, including snags in safety, zoning and market awareness, he said.

Many manufactured

homes are “hurricane tested,” and as they are carried on trucks to their destination, constantly face winds of 60 to 70 miles an hour on Interstates, Urban said, citing an example in how safety in manufactured homes have improved since 1978.

Depreciation was also a concern, but Urban said that current data shows equal value holding levels for well-cared for manufactured homes and well-

9

Photo Courtesy of NFWF

work in concert with one another,” said Mike Smith, CEO of Green Smith Public Affairs.

The first project restored 2,000 feet of Beaver Creek by using natural stream design restoration techniques to help restore cared for traditionally built homes.

Stigma against manufactured homes also needs to be tackled, Urban said.

“The bottom line about manufactured housing is — it’s cheaper to produce, it’s cheaper to bring to market and it brings a lower price point to market, period,” Urban said.

Contact Ian Munro at 574-6278 or imunro@dnronline.com. Follow Ian on Twitter @IanMunroDNR

t h e ch a n n e l ’s p a t t e r n , profile and dimension, according to Seth Coffman, Shenandoah Home Rivers Initiative manager for Trout Unlimited.

Instream habitat structures were installed to protect the streambanks from

channel erosion and to improve its natural habitat.

Through livestock exclusion, cattle were excluded from the stream. An offstream watering system was installed for the cattle.

See TOILING, Page 11

Classifieds work! Call 574-6220.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Wednesday, June 26, 2019

Diversity

FROM PAGE 8

four programs, and is focused on training or retraining employees.

For example, the program would apply for workers who previously handwrote orders in a stockroom and now need to be trained to use new electronic equipment, Jackson-Diggs said.

Those interested in this program are suggested to reach out to Brian Shull, the economic development director of Harrisonburg.

Another local source of incentives for hiring a diverse workforce is the Valley to Virginia grant, originally awarded to the Shenandoah Valley Workforce Development Board by the U.S. Department of Labor.

The purpose of Valley to Virginia is to “address the nation’s critical skills shortage through registered apprenticeship programs,” according to the presentation.

Almost 218,000 craft jobs will be available in September 2022, according to Build Your Future, a construction career center.

Those interested in that program can contact Debby Hopkins, the chief workforce officer and program director of the Shenandoah Valley Workforce Development Board.

The June 5 meeting met its goal of over 100 attendees, including speakers, said event organizer Chris Jones, the chair of the diversity council of the Harrisonburg-Rockingham Chamber of Commerce and Harrisonburg city councilman.

Jones and the chamber are already looking at holding another such event in the near future, though a date has not been set, said Frank Tamberrino, president and CEO of the chamber.

crowd about included the Work Opportunity Tax Credit, On-the-Job Training, and Unpaid Work Experience.

The Work Opportunity Tax Credit, or WOTC, is targeted to help the hiring of summer youth, qualified veterans and ex-felons, recipients of five government assistance programs, and vocational rehabilitation referrals.

Benefits vary based on the industry of the employer and the number of hires from the aforementioned populations.

For example, health care employers can receive $60,000 for 500 hires, the lowest benefit, while hospitality employers can receive $1,040,000 in benefits for 5,000 hires, the highest benefit.

The benefits are in the form of a federal tax credit from Congress, and the goal is for employees to move from economic dependency to self-sufficiency.

The On-The-Job Reimbursement Program works by having the opportunity that the Department of Aging and Rehabilitative Services reimburse the employer 50% of the workers’ wages for a “training period” of up to six months.

The department also supports the Unpaid Work Experience program.

In this program, the department works with the employer to help connect certain potential workers who match certain needs from the employer, and gives the worker and employer time to decide if they would like to continue to work together.

The Department of Aging and Rehabilitative Services will also cover liability coverage for qualifying clients.

The Virginia Jobs In- Contact Ian Munro at 574-6278 vestment Program, or VJIP, or imunro@dnronline.com. Follow is actually a composite of Ian on Twitter @IanMunroDNR

Harrisonburg, Va.

Hotel Feasibility Study Moves Forward

By JESSICA WETZLER Daily News-Record

BRIDGEWATER — Bridgewater Town Council unanimously voted on a resolution of support regarding the consideration of a hotel feasibility study grant during a meeting on June 11.

The grant through the United States Department of Agriculture’s Rural Business Development Program

for $30,000 will be used to identify what the town needs to pitch toward prospective purchasers.

Town Manager Jay Litten said in a staff report the town should know within a few weeks of the June meeting whether it will receive the grant.

Town staff has been looking to sell lots on Don Litten Parkway for the last several years, looking into restau-

rants and hotels, according to Alex Wilmer, assistant town manager.

The 5-acre property is valued at $679,000.

After speaking with a hotel owners, according to Litten in a staff report, a hotel feasibility study was mentioned that would identify ways to improve the town’s pitch to purchasers.

With the help of the study, the town will know how

many rooms a hotel can hold, according to Wilmer, but the town is hoping to have 70 to 100 rooms in the hotel.

Wilmer said most of the application has been completed, but a resolution of support was still needed to move forward.

Contact Jessica Wetzler at 574-6279 or jwetzler@ dnronline.com. Follow Jessica on Twitter @wetzler_jessica

Scott Mason / For the DN-R

Rubbermaid Commercial Products in Winchester is closing the metal trash can division on Sept. 30, impacting 49 employees.

Rubbermaid Closing Metal Trash Can Division

By ONOFRIO CASTIGLiA For the Daily News-Record

WINCHESTER — Rubbermaid Commercial Products is closing the metal trash can division at its Valley Avenue facility on Sept. 30, impacting 49 employees, a company spokesperson confirmed on June 21.

The plant employs about 700 people.

Claire-Aude Staraci, a communication executive for the company, said workers affected by the closing “are eligible to apply for open positions within the resin and distribution facilities.”

In addition to the Valley Avenue facility, Rubbermaid has a distribution facility on Apple Valley Road in Frederick County. The two locations employ a combined 1,200

people, making Rubbermaid one of the largest employers in the region.

Rubbermaid, a subsidiary of Hoboken, N.J.-based Newell Brands, has been in Winchester for about 50 years.

Staraci did not respond to questions asking why the division is closing. Asked if the division’s operations are being outsourced to China, she said that they are not.

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

vided through NFWF to purchase a Bazooka/Farm Star drag “Roughly 2.9 acres of ripar- hose tool bar system with Dietian buffer was placed in to pro- rich injectors mounted.

“We dreamed of it for years tect habitat improvements being made,” Coffman said. “We have had but it was something people eight years of growth here and the don’t do,” Nelson Rodes said. “We shade is starting to come back in.” have been doing this for almost Prior to the restoration project, three years and have seen 20% data was collected for temperature, more harvest with the injection.”

Maguire said due to the mastream substrate, fish assemblage and aquatic micro invertebrates. nure being injected directly in By narrowing the channel and the ground, there is little to no making it deeper, the temperature odor and driving is faster.

Maguire said Nelson Rodes is in Beaver Creek decreased from the upper 80 degrees Fahrenheit the only farmer using this type to the upper 60 degrees Fahren- of practice for nutrient management, but said he heit, creating a more sees the practice beideal environment for coming more popubrook trout.

Improvements to lar in coming years.

There is still work the stream substrate Glenn Rodes were also documented manages the farm’s to be done here, in the creek. poultry operation but we were able with Nelson Rodes’ In 2015, with asto address sediment son, Justin, where sistance from the Virginia Department they installed a bioand temperature of Game and Inland mass heating system issues and keep Fisheries, more than that can use wood 12 adult brook trout chips or poultry litcattle out. were sampled in Beater to provide heat ver Creek, where they for the turkey pouln Seth Coffman, previously were untry house.

Trout Unlimited documented for deBy concentrating cades, according to Coffman. excess poultry litter nutrients, “There is still work to be done the system can expand the dishere, but we were able to address tance over which poultry litter sediment and temperature issues nutrients can be cost-effectively and keep cattle out,” Coffman said. transported.

Funding for the projects was T h e R i v e r h i l l Fa r m a l s o made possible by numerous or- landed itself as an example for ganizations, including the Ches- how erosion affects water qualapeake Bay Program, NFWF and ity. the Virginia Department of ForThe land contributes heavestry, according to Coffman. ily to the rate of erosion along the shoreline of the North Fork of the Shenandoah River due to Riverhill Farm It’s one thing to be the first, the river channel changing a few but it is another to be the only. years ago.

Glenn Rodes said the river Four generations of the Rodes family operate and live at the channel flows through a failed Riverhill Farm, producing milk, old mill dam channel, making turkeys and grain crops in Rock- trees along the river shoreline ingham County, according to fall and create hazardous conditions for recreational boaters Glenn Rodes.

Nelson Rodes manages the and rafters.

“Our goal would be to stabicrop operations on the farm, where he has implemented an lize it,” Glenn Rodes said.

Glenn Rodes has been workinnovative practice of injecting manure directly in the ground to ing with Ecosystem Services to optimize the amount of nitrogen. find a way to restore the stream.

“The problem is funding,” said Through the help of Rory Maguire, a professor at Virginia Jon Roller with Ecosystem SerTech specializing in nutrient vices. “There is a tremendous management, funding was pro- amount of work that needs to be

Toiling

Wednesday, June 26, 2019

11

FROM PAGE 9

“

Photos Courtesy of NFWF

Nelson Rodes and Virginia Tech professor Rory Maguire discuss manure injection equipment that helps to get more nitrogen in the ground. With the help of Maguire and funding from the National Fish and Wildlife Foundation, Rodes was able to purchase a Bazooka/Farm Star drag hose tool bar system with Dietrich injectors to inject manure directly in the ground. done here.”

Cave View Farm

Cave View Farm in Augusta County includes nearly 2,000 acres of cropland, 575 milking cows, 575 replacement heifers and six draft horses.

For close to 20 years, Gerald Garber has implemented an extensive resource management plan and nutrient management training on a volunteer basis.

In the early 2000s, Garber and his farm partners fenced out 2.5 miles of streams to keep out livestock.

“It’s important to look nice,” Garber said.

Through streamline fencing, Garber said he observed improved herd health in connection with the decreased erosion and loss of sediments from the healed streambanks.

“Stream fencing was the beginning of the project, but it is ongoing,” Garber said. “Right now, 99.9% of our streams are fenced.”

Garber said he has done a mix of government-related projects since the early 2000s, one

Seth Coffman, Shenandoah Home Rivers Initiative manager with Trout Unlimited, points out how Beaver Creek has changed since the implementation of the TU Beaver Creek Restoration Project. Since starting in 2010, native brook trout has returned to the stream due to restoration. of which included installing con- in the streams.”

Garber and partners have also crete slaps over waterways to prevent livestock from “turning implemented agronomic practices to enhance soil health. up anything.”

“I want to have a clean enContact Jessica Wetzler vironment so we try to have a at 574-6279 or jwetzler@ project every year,” Garber said. dnronline.com. Follow Jessica “Regardless of the Chesapeake Bay, I wouldn’t want my cattle on Twitter @wetzler_jessica

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Wednesday, June 26, 2019

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.