Delaware Business - March/April 2012

DELAWARE

Business March/April 2012 $3.00

Dr. Bob

Christiana Care’s Robert Laskowski is everywhere in Delaware health care

Plus: • Guide to Taxes • Construction and Real Estate Special Delaware Business | Ma rc h / Ap r i l 2012

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A Publication of the Delaware State Chamber of Commerce 1

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the faster money can go around the world, the more you need a bank

that’s always been right around the corner.

A bank that knows you – and what matters to you. a bank that has people who can give you answers without passing you from one desk to another. that can make decisions right here. and a bank that keeps your money working for you in your community. where can you find a bank like this? Just around the corner—at your nearest wsfs. call us at 1-888-wsFsbanK or visit us online at wsfsbank.com.

©2012 wilmington savings Fund society, Fsb | Member Fdic

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Follow us on twitter at twitter.com/wsfs.

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In this Issue

Departments President’s Message............................... 2 Business and education are forever linked Legislative Priority................................... 3 Breaching the Utility Cost Barrier

Delaware State Chamber of Commerce President and CEO Jim Wolfe (right) thanked outgoing chairman Tommy Cooper for his service to the Chanmber during a January meeting.

Member News and Notes....................... 5 The Wilmington Blue Rocks celebrate a milestone, construction firms rake in awards, Bayhealth embarks on a new era, and more.

Q&A: Barry Crozier. The Belfint, Lyons & Shuman CPA speaks to us about his new post at the influential G400.

Business Spotlight: Pettinaro Nonprofit Spotlight: KINfolk

Features

Welcome New Members. ..................... 16

Superstars in Education.................................................................................... 26

Chamber Scene. .................................... 18

Mark your calendars for the 2012 awards dinner.

Newsbites. .............................................. 43

Guide to Real Estate and Construction........................................................ 29 Issue: Technology and innovation are changing the real estate game.

Who’s keeping up? And how is social media making an impact?

Calendar.................................................. 44

By Bob Thurlow

Affiliates Update. ................................... 45

Health Care........................................................................................................... 33

Manufacturing........................................ 47

Profile: Dr. Bob Laskowski. Christiana Care leader, affectionately known as Dr. Bob, is shaping health care policy on a state and national level.

Chamber Committees........................... 50

By Larry Nagengast (Photos by Tom Nutter)

Chamber Member Benefits.................. 51

Guide to Taxes...................................................................................................... 39 Service: The experts at ParenteBeard provide 2012 tax updates for business and individuals. Plus, at look at tax issues for non-profit organizations.

For Assistance, Contact the Chamber........................................... 52

By Jeffrey Mitchell and Randi L. Jowers

On The Cover Robert J. Laskowski, M.D., MBA, president and chief executive officer of Christiana Care Health System. Photograph by Tom Nutter.

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Volume 17, Number 2 / Delaware Business (USPS 012098) (ISSN 153253542) is published bi-monthly by the DSCC Center for Business Management. Subscription price is $18 a year (included in membership dues). Known office of publication is 1201 N. Orange St., Suite 200, Wilmington, DE 19801.

Periodicals postage paid Wilmington, DE 19850. Postmaster: Send address changes to Delaware Business, c/o DSCC Center for Business Management, P.O. Box 671, Wilmington, DE 19899-0671. Telephone (302) 655-7221.

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Message from . the President Spring is right around the corner, but we’re still reeling over our 175th Annual Dinner, which may have been our best yet. I’d like to thank our members who attended in January. Please enjoy a few photos from the event on pages 20-23 and on our website, www.dscc.com.

James A. Wolfe What a wonderful and pitchperfect speech from our 2012 Josiah Marvel Cup Award recipient, Robert Rider--the chairman of O.A. Newton & Sons in Bridgeville, and longtime director of the Delaware State Fair. His contributions to the state cannot be overemphasized.

Also that night, many of you heard WSFS chairman Skip Schoenhals speak passionately about the link between the business community and serious education reform.

He said: “The involvement of Delaware’s business community must increase. In every place in the country where strong educational reform is taking place, the business community is deeply involved. We have to be highly engaged, advocating that schools produce graduates ready for life’s experience or college.”

The Chamber is, and has always been, deeply tied to public education. Flip to page 26 and mark your calendars for the Superstars in Education Dinner, May 7 at the Chase Center in Wilmington.

While you have your calendar out, don’t miss our 2012 Spring Legislative Brunch and Manufacturing Conference, held this year at the Sheraton Dover Hotel on Thursday, March 22. Join us for networking and a buffet brunch as we shine the spotlight on manufacturing in Delaware.

Ned Monroe, senior vice president of external relations for the National Association of Manufacturers (NAM), will address the morning session, and Gov. Jack Markell will join us for brunch to speak about state efforts to support manufacturing. The purpose of the Manufacturing Conference is to recognize the many important contributions that manufacturers make to the Delaware economy.

Gov. Markell (yet another speaker at the Annual Dinner) continues to stress job creation, and no one can deny our state’s manufacturers play an important role in that equation.

One more programming note: Delaware Business has undergone a bit of a makeover, so give our new look a once-over.

DELAWARE

Business Editorial Staff William R. Allan Chairman

James A.Wolfe President/CEO

Matt Amis Managing Editor

Executive Committee CHAIRMAN

William R. Allan William Allan & Assoc., LLC IMMEDIATE PAST CHAIRMAN

Thomas J. Cooper Cooper Realty Associates CHAIR ELECT

Hinton Lucas DuPont VICE CHAIR

Mark Stellini Virtual Resources TREASURER

Barry Crozier Belfint, Lyons & Shuman

Sylvia Banks DuPont

Chip Rossi Bank of America

Ernie Dianastasis CAI

Richard D. Rowland Rowland, Johnson & Co., PA

Donald T. Fulton George J. Weiner Associates

Dennis M. Salter Summit Realty Advisors, Inc.

Pierre du Pont Hayward University of Delaware

Fred C. Sears, II Delaware Community Foundation

Alan Levin Delaware Economic Development Office

Mark Turner WSFS Bank

William E. Manning Saul Ewing LLP

Michael S. Uffner AutoTeam Delaware Richelle Vible Catholic Charities of Delaware

Board of directors Linda Ammons Widener University School of Law

John E. Healy III Healy Long & Jevin, Inc.

Chad Moore The Bellmoor

Julian H. Booker Delmarva Broadcasting Company

Michael Houghton Morris, Nichols, Arsht & Tunnell, LLP

Bret Morris A.R. Morris Jewelers

David B. Brown Potter Anderson & Corroon, LLP I.G. Burton i.g. Burton & Co., Inc.

Tyrone Jones AstraZeneca Pharmaceuticals LP Chris Kenny ShopRites of Delaware

Timothy J. Constantine Blue Cross Blue Shield of Delaware

Richard H. LaPenta Insurance & Financial Services, Ltd.

Charlie Copeland Associates International, Inc.

Robert J. Laskowski M.D. Christiana Care Health Systems

E. Andrew DiSabatino EDiS Company

Renee Lewandowski Agilent Technologies

Christina Favilla Discover Bank

Cathy MacFarlane ING DIRECT

Donald G. Gagnon AAA Mid-Atlantic

Scott Malfitano CSC - Corporation Service Company

Orlando J. George, Jr. Delaware Technical & Community College

Theodore J. Prushinski Citizens Bank Michael Ratchford W.L. Gore & Associates, Inc. John S. Riley Ashland, Inc. Thomas A. Shoemaker TD Bank W. Laird Stabler, III Laird Stabler & Associates, LLC Gary R. Stockbridge Delmarva Power Clinton Walker Barclaycard US William S. Wallace JPMorgan Chase

Nicholas Marsini PNC Bank, Delaware

Robert W. Whetzel Richards, Layton & Finger

Martha S. Gilman Gilman Development Company

John McCarthy AstraZeneca Pharmaceuticals LP

Katie Wilkinson Fulton Bank

Robert V.A. Harra, Jr. Wilmington Trust Company

Paul M. McConnell McConnell Development, Inc.

Harry L. Williams Delaware State University

Matt Amis Communications Manager Cheryl Corn Executive Assistant to the President Senior Vice President Communications Denee Crumrine Program & Communications Specialist Manager, Small Business Alliance Katie Dunn Communications & Events Associate Linda D. Eriksen Accounting Associate

Greg Gross Director of Government Relations Chuck James Account Executive Lisa Prickril Events Manager Arlene Simon Account Executive Bill Stephano Director of Membership Patrina Wallace Information Administrator

staff James A.Wolfe President/CEO Marianne K. Antonini Senior Vice President A. Richard Heffron Senior Vice President Janine G. Sorbello Senior Vice President & Executive Director, The Partnership John H. Taylor, Jr. Senior Vice President & Executive Director, DPPI

ADVERTISING SALES / Miller Publishing, Inc.

Fred Miller President

Delaware State Chamber of Commerce 1201 North Orange Street, P.O. Box 671 • Wilmington, DE 19899-0671 (302) 655-7221 • (800) 292-9507 • www.dscc.com

The mission of the Delaware State Chamber of Commerce is to promote an economic climate that strengthens the competitiveness of Delaware businesses and benefits citizens of the state. The Chamber will provide services members want; it will serve and be recognized as the primary resource on matters affecting companies of all sizes; and it will be the leading advocate for business with government in Delaware.

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Photo by Dick Dubroff/Final Focus

Legislative Priority

Breaching the Utility Cost Barrier

By Rich Heffron

The bottom line of economic development is simple: States that can provide the means for companies to be competitive in today’s global marketplace will be successful in retaining and creating jobs.

The reasons employers decide to expand or relocate are complex, and the list of considerations for those business leaders is long. Generally speaking, Delaware rates very high on these lists in many areas, including lifestyle, responsive government, productive workforce, overall tax structure and location.

But there are some areas where Delaware is not so competitive, most notably in the area of our high energy/utility costs. This rings especially true for manufacturers, because these expenses are a high percentage of their variable costs.

Several factors contribute to the high cost of energy on the Delmarva Peninsula. A prime reason is the need for improvement in utility infrastructure. State leaders are currently working with local energy providers to spearhead infrastructure upgrades. Up-to-date technology can address this obstacle, but it remains a long-term project.

In the short term, one partial solution is encouraging competition between energy suppliers. Gov. Jack Markell addressed such competition in his State of the Union Address back in January. Municipal electric providers in an open competition for commercial establishments, he said, could help drive lower rates.

A survey comparing open-market rates with the rates of big companies where local municipalities hold a monopoly, revealed potential savings of Delaware Business | Ma rc h / Ap r i l 2012

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17 percent to 35 percent, or $2,900 to $775,000 annually based on the size and type of business.

These cost disparities are high enough to decide whether to delay expansion, move a facility to a more advantageous location, or cross this municipality off the list of potential sites.

It would be naïve not to acknowledge the fact that the revenue municipalities receive from supplying energy to commercial establishments keep local taxes at a reasonable level and go a long way toward keeping budgets balanced. But in the last 20 years we have seen major employers leave these small cities, throwing tax levels and balanced budgets in flux.

High electric rates were not the only reason these businesses closed down, but they were a major consideration when management made the final decision. The question needs to be asked: What is the better situation—allowing a company to buy energy on the open market at a competitive price, either from the municipality or an outside provider, and keeping a smaller percentage of the revenue? Or receiving greatly reduced or no income and accepting the problems created by an abandoned commercial site?

The Delaware State Chamber of Commerce agrees with Gov. Markell.

Now is the time for the leaders of municipalities that provide electricity to sit down with our state economic development team, local public officials, business leaders, and outside energy suppliers to figure out a way to allow commercial establishments to negotiate energy rates in an open market.

This plan will encourage economic growth that will benefit the residents of their towns and all citizens of Delaware. n 3

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Member

news&Notes Blue Rocks celebrate their 20th season

By Mitch Deffner

People, magicians Quick Change The Wilmington Blue Rocks and the Amazing Christopher, and have generated 19 years of lovable, inflatable mascots known great minor league baseball along as ZOOperstars! Other new addiwith exceptional family entertainth tions to Frawley Stadium include a ment. With the 20 anniversary new left field scoreboard as well as season beginning this spring, fans a Blue Rocks’ Dance Team. can look forward to yet another Ten different community nights amusing event schedule as well th are scheduled throughout the as the Rocks vying for their 15 season, including Operation Any Carolina League playoff appearSoldier Night, Ronald McDonald ance in 20 seasons.

House Night and “Fight for the The entire 2012 season is dediGold,” Delaware’s Kickoff to cated to showing respect for those Childhood Cancer Night. Also, the who have contributed to a successballpark will host a Jewish Heritage ful baseball team and entertainment night, a Greek Heritage night and a venue for the last two decades.

German Heritage night.

“We really want our fans to realThe Blue Rocks moved to ize that they are enjoying a show, Wilmington from Hampton, not just a great minor league Virginia in 1992, switching Major baseball game,” says Dave Arthur, League affiliations from the Seattle director of marketing. “We want to Rocky Bluewinkle has his own Facebook page with more Mariners to the Kansas City Royals. cram so much entertainment into than 4,000 friends.

The name “Blue Rocks” was our games, that even people who selected because of the blue grandislike baseball will still have a ite found along the Brandywine River in The second-largest crowd ever at great time with their friends.”

Wilmington. The Blue Rocks have been Blue Rocks’ mascot Rocky Bluewinkle Frawley Stadium came on “Cowboy Monkey Rodeo Night” in 2009. The Blue affiliated with the Royals every year will be leading the excitement charge except a two year stint from 2005 to Rocks were the first sports team to once again, and Frawley Stadium will still be the only place in the world where book these Capuchin monkeys who ride 2006 when they served as a farm team for the Boston Red Sox. border collie dogs. The rodeo monkeys you can find Mr. Celery, a mascot who Since 1993, more than 115 playare scheduled to return not once, but performs a celebratory dance by home ers have passed through the Rocks’ twice this spring. plate for every run scored. With a large Single-A farm team on their way to the Every Friday night game and a few slate of activities during Blue Rocks’ majors. Throughout 2012, former playscattered Saturday games will be folbaseball games, the team has been ers and members of the organization will lowed by a fireworks show. Other voted “Best Place to Take the Kids” in relay important messages to the fans on the News Journal’s Reader’s Choice Poll quirky entertainers scheduled to appear the jumbo screen. include puppeteers Those Funny Little from 2009 to 2011.

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Member

news&Notes Blood Bank of Delmarva Sets Records, Saves Lives

By Mitch Deffner

Blood Bank of Delmarva teamed up with the Colonial Athletic Association (CAA) in 2002 to create a friendly competition that could save lives. This past fall, all 12 schools in the conference hosted a one-day blood drive to help others. The school with the most donations goes home with the trophy.

For the fifth time in the challenge’s 10 year history, the University of Delaware was victorious. It was the first time UD had won the challenge since a four-year winning streak from 2002-2005. Drexel had won the previous five.

“Getting the trophy back to UD is pretty special for us,” says Michael Waite, director of marketing and community relations for Blood Bank of Delmarva. “It was a great effort by the university as well as the staff here.

We really wanted it back at UD so we worked very hard with university members, and it paid off.”

On September 16, 2011, UD set up four different donation sites on campus.

Not only did the Blue Hens win the competition, they held the school’s and the state’s largest blood drive ever.

Blood Bank of Delmarva’s goal was to have more than 1,400 people registered to donate. The organization attracted 1,356 registrants--a number the blood bank was nonetheless pleased with, considering the huge increase in num-

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YouDee and Blue Hens football coach K.C. Keeler helped UD capture the CAA blood drive title.

Photo courtesy blood bank of delmarva

bers from last years challenge, which drew 1,086 donors.

“We had an extremely dedicated staff at all of the campuses. Everyone worked hard on different ways to market the event and other ways to get the public interested and involved,” Waite says.

Every year, the challenge has broken its previous record of units of blood

More than 32,000 total units of blood have been collected from all CAA campuses since the challenge began in 2002.

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collected. More than 32,000 total units of blood have been collected from all CAA campuses since the challenge began in 2002.

Each day more than 350 blood donors are needed in the Delmarva Peninsula area, according to Blood Bank Delmarva.

Victims of car accidents or patients in need of heart surgeries or organ transplants often require blood transfusions.

Donating blood is an easy and free way to get involved and possibly save the lives of up to three patients. For more info, visit www.delmarvablood.org.

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Member

news&Notes

Health Care Reform and Implications for Employers

Member Guest Column:

By Richard R. Wier, Jr., Esq. of Wier & Allen, P.A.

On March 23, 2010, after significant debate in Congress, President Obama signed into law the Patient Protection and Affordable Care Act. This act has implications for employers which are important to understand, as various dates trigger obligations. This is not an exhaustive exposition of those implications, but a few highlights of the benefits and detriments of the act.

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Some Benefits of Health Care Reform Although the act requires all health plans to provide new benefits to consumers, it allows employers with grandfathered plans that existed as of March

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23, 2010 to contain costs and make routine changes without losing grandfather status. Plans will only lose their grandfather status if they choose to significantly cut benefits or increase outof-pocket expenses for consumers. By not having to completely redesign and revamp grandfathered plans, employers are able to save money and devote resources to other areas of their business.

“American Health Benefit Exchanges,” to be established no later than January 1, 2014, present another avenue for reducing costs to employers. These exchanges will offer a greater choice of plans at more affordable rates for

individuals and employers with no more than 100 employees. Employers who choose to participate in the exchanges will be given a choice among multiple insurance plans with lower prices than those found in the small group market.

Employees are also expected to benefit, as health insurers in the exchange would not be allowed to exclude individuals on the basis of pre-existing conditions or to vary premiums without limit based on age.

Further reducing costs to employers, beginning in 2010 the act allowed for 14,000 small businesses in Delaware to qualify for a small business tax credit for up to 35 percent of their premiums.

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Those employers with no more than 25 full-time employees (whose average total wages do not exceed $50,000) are eligible for the tax credit. This credit is critical for small businesses which pay 18 percent more, on average, than larger employers for similar coverage.

The tax credit makes it much easier for businesses to provide coverage to their employees and ensures that premiums are more affordable.

Health care reform has also provided affordable health insurance for retirees of small businesses in Delaware. In 2009, an estimated 16,000 Delawareans retired before they were eligible for Medicare and sought health coverage through their former employers. Unfortunately, the number of small businesses able to provide health insurance to retired employees has decreased over time, leaving retirees without necessary coverage. Beginning June 1, 2010, a $5 billion temporary early retiree reinsurance program was implemented to help stabilize coverage and ensure that businesses are able to provide health coverage to their early retirees. Companies, unions, and state and local governments are eligible for these benefits.

While there are some benefits of health care reform for some employers, there are disadvantages as well, causing increased costs and expenses to employers who must implement the changes mandated by reform.

Detriments of Health Care Reform Employers must implement changes in their health plans to conform to the requirements of the act. Timelines for implementing these changes must be monitored and followed, beginning in 2010, and extending through 2014.

Added financial resources and time

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must be expended for employers to put these changes into effect. For example, employers must provide their employees with many different notices, including notice of a plan’s grandfathered status, notice of special enrollment for adult children, notice of the availability of the Health Care Exchanges, and notice of the right to designate any available innetwork primary care physician.

As of January 1, 2011, employers incurred the additional burden of disclosing health coverage costs on employees’ W-2 forms. Employers must provide this disclosure in English, and those employers located in counties where the nonEnglish speaking population represents 10 percent or more of the total population, must provide the disclosure in that second language, as well.

Employers with self-insured health plans will be at a financial disadvantage in the near future. Starting with plan years beginning on or after October 1, 2012, employers that have selfinsured health plans must pay a fee equal to $2 per participant. This fee will decrease to $1 for the 2013 fiscal year.

However, plan years that begin on or after October 1, 2014, will have a fee increase at a rate equal to the rate of increase in national health expenditures, which is yet to be determined.

Beginning March 23, 2013, employers are responsible for providing employees with uniform explanations of their coverage, using standard definitions of common insurance and medical terms.

These uniform explanations of coverage must be provided to employees on two occasions – at hire and at annual enrollment. Common benefit scenarios must be used in the explanations and a point of contact must be offered in the event that employees have questions.

Employers with more than 100 fulltime employees must file annual reports with the U.S. Department of Health and Human Services for plan years beginning on or after January 1, 2014.

These reports must disclose whether the employer offers a health plan that covers essential health benefits.

Additionally, the report must discuss the length of waiting periods, the cost of the cheapest plan options offered for each enrollment category, the employer’s share of the total benefit costs for each plan, the number of participants in each plan per month, and the name and address of each participant. Employers must also provide copies of the report to employee participants, further increasing costs to the employer.

Many changes must be implemented pursuant to healthcare reform and employers are responsible for ensuring they are in compliance with these new requirements. An employer’s failure to conform its health plan to these changes will result in excise tax penalties, some as high as $100 per participant per day for the period of time that the employer’s plan is out of compliance.

The possibility of incurring such high penalties should prompt employers to contact their legal counsel or health care provider to make certain they are in compliance with the current and upcoming regulations.

Richard R. Wier, Jr., Esq. is the Senior Partner in the law firm of Wier & Allen, P.A. He is the former Delaware Attorney General and has continuously been ranked as a top Labor Employment Lawyer in Delaware and Nationwide.

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Member

news&Notes Passion from the Tax Man: A Q&A with Barry A. Crozier, CPA

By Katie Dunn

With more than 40 years of experience in public accounting, Barry A. Crozier, a partner at the distinguished firm of Belfint, Lyons & Shuman, CPAs, still has a passion for his job. Now he will bring this enthusiasm to the Chicago-based Practice Advisory Group of the American Institute of CPAs (AICPA) Group of 400 (G400). Delaware Business sat down with Crozier to discuss his new position, plus his gig at the Department of Accounting and MIS Advisory Board of the Alfred Lerner College of Business at the University of Delaware.

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What is the G400 and what is the goal of the advisory group?

Crozier: The G400 is more or less the meat and potatoes of the profession, the firms in between the very large and very small firms. There are professional, client and regulation issues that need to be addressed by these firms in order to strengthen the profession and practice of public accounting.

The discussions include how accounting firms have had to evolve and adapt to the changes of the times and what the profession is going to look like in 15 years. These issues need to be explored in the G400 so we can prepare for them.

Accountants want to be prepared for things so that there are very few surprises to us and to our clients. In the advisory group, I’m sitting with other managing partners of firms and I’m getting the best ideas from those firms and hopefully I’m giving them good ideas as well.

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What is the mission of the advisory group for the Department of Accounting and MIS at UD? Crozier: That group is comprised of people in different areas of the practice: public accounting, government, academics and student body representation. We get input from the professors and from people who actually practice accounting. The idea is to get a whole compendium of ideas and to make the program at UD the strongest it can be.

Barry Crozier will bring his expertise to the American Institute of CPAs. Photo by dick dubroff/final focus Photography

How have you seen BL&S improve the community and small business in Delaware?

Crozier: We have a history of encouraging our staff to get out in the community and give back. As one of the largest firms, we feel we have that responsibility. We encourage participation on the boards of non-profit organizations and add our expertise to the table. One of our staff is on the tax committee for the Delaware Society of CPAs, and last year she brought to our attention that the City of Wilmington wanted to expand the city wage taxes to ‘S corporations’ earnings which would have created an additional tax burden on them. This was a big problem and I decided we needed to get the Delaware Society of the CPAs, the State Chamber, the County Chamber, and lawyers involved to sit down and figure out how to approach

this dilemma.

Long story short, we did that and one of our partners testified during city council. With that, and other public outcry, they backed off. It could have been very detrimental to business in the City of Wilmington.

What do you like to do for fun?

Crozier: I like to read and travel, but most of all spend time with my family and two grandchildren. Though I’m not good at it, I like to golf. We have a place in Ocean City, Md. and my mind literally unclogs when I get down there. But with my job, there is always something to do and I am always representing my firm. I like to think that I have a lot of passion for this business. Out of necessity and out of passion, I think about it all the time. It’s hard not to. You can come up with ideas anywhere.

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KINfolk: Donated computers help hospitalized kids to access the world Nonprofit Spotlight

By April Hall

It’s easy to feel isolated in a hospital. You don’t get to decide when your meal arrives, you can only have visitors at designated times, and you can’t come and go as you please.

Imagine what that feels like to a child.

To stave off the loneliness of chronic illness, KINfolk, a small non-profit based in Wilmington, provides laptop computers for hospital- and home-bound children.

The flagship hospital for KINfolk is Alfred I. duPont Hospital for Children.

There, the group has 50 computers that are not only distributed to in-patients, but are also found in waiting rooms to help kids pass the time while they await appointments.

In 2009, The Chichester duPont Foundation’s Lydia Fund, which focuses on benefiting children in Delaware, awarded KINfolk $30,000 to buy an entire suite of new laptops. Those laptops are Skype-capable and allow children to not only keep in touch with family and friends, but also attend school in some cases.

In addition to grants, businesses like AstraZeneca have donated laptops to the group. The computers’ hard drives were wiped clean, and new licenses for operating systems were provided.

Donations of several identical computers are easier to work with, says KINfolk executive director Melinda McGuigan, because software can be cloned more easily than having to work with several different systems.

McGuigan says she would love to

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Melinda McGuigan [right] surfs the web on a KINfolk laptop with 14-year-old Jakeem Edmead.

Photo by Terrence Roberts Photography

expand the program nationally (it currently has a number of computers in homes and 21 children’s hospitals across the country), but expanding the program is a challenge.

“As far as growing the program, if I want to expand to Mercy Children’s

Hospital in St. Louis, I need to go there,” McGuigan said. And travel can be a challenge for an all-volunteer group like KINfolk. “It’s a challenge to take a small, local charity and grow it into a national charity.”

For more, visit www.kinfolknet.org.

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Member

news&Notes Pettinaro: Family-owned developers continue to build Delaware

Business Spotlight

By April Hall

As a family, and as a company, Pettinaro invests in communities.

When Verino Pettinaro started his construction company in 1964, he was working out of a garage, building a portfolio with commercial projects that included schools, post offices and an addition to the University of Delaware library.

As his company grew, Verino invested in places along Wilmington’s riverfront and downtown areas. Pettinaro was at the helm of the Delaware Center for the Contemporary Arts, the Shipyard Shops and Frawley Stadium—just a few of many projects that changed the face of Wilmington.

In 2008, the developers purchased the Rodney Square Courthouse from Bank of America and renovated it into a multi-million-dollar office building for the law firm Young, Conaway, Stargatt and Taylor, LLP. Verino’s son, Gregory Pettinaro, who is now in charge of the company, continues to cultivate his father’s legacy with development projects, and community service on the boards of Downtown Visions and the Wilmington Renaissance Corporation.

“Pettinaro is about investing and taking risks in markets,” says Nancy Fleming, director of corporate relocation and a general sales manager. “Verino was willing to invest in the Riverfront community and the location, and now it’s very successful.”

One of the company’s largest and most ambitious residential projects

››

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Greg Pettinaro gets comfy at “The Pointe,” residential condominiums along the Brandywine River.

Photo by Terrence Roberts Photography

is The Pointe at Brandywine Park.

Pettinaro designed and constructed a 56-home condominium complex along the Brandywine River, which are priced at $525,000 to $1.5 million per unit.

Residents enjoy a host of amenities including river views, a swimming pool, fitness center and a life free of shoveling snow and mowing the lawn.

Pettinaro has designed, built and managed more than 5 million square feet of commercial and residential space

in its nearly 50-year history and millions more are on the horizon.

The company has grown from a construction company to a development corporation with properties in Delaware, Pennsylvania, Maryland and Florida. In uncertain times, Pettinaro continues to grow and flourish with many of the units of The Pointe already sold.

Says Fleming: “It’s important to not be afraid to be the leader, and step forward and say, ‘I’m going to invest.’”

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Thank You 175th Annual Dinner Sponsors!

Presenting

Dinner

Audio/Visual

Ambassador

Advocate

Supporter

Invitations & Programs

Graphic Design

Door Prizes The Bellmoor Inn & Spa Kings Creek Country Club Dogfish Head Brewery

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Member

news&Notes More Member News and Notes VanDemark & Lynch Acquire Steinle Construction Engineers VanDemark & Lynch, Inc. announced in December the addition of Steinle Construction Engineers. As a new division, it will provide the company with structural engineering and building code review services.

Founded by Alan G. Steinle, PE, Steinle Construction Engineers has provided structural engineering services for over 18 years to a wide range of public and private clients, including New Castle County and the State of Delaware. Its staff of certified building plans examiners has performed more than 2,000 project

reviews for the New Castle County Department of Land Use for compliance with International Building and Residential Codes since 2000. Steinle Construction engineers received the prestigious 2008 Engineering Excellence Grand Conceptor Award from the American Council of Engineering Companies (ACEC) of Delaware.

Bayhealth Set for $147-million Hospital Expansion Bayhealth is set to open a 400,000 square foot, $147-million expansion of Bayhealth – Kent General Hospital.

The newly expanded hospital will

help ensure that Bayhealth has the capacity to serve the growing health needs of the community for many generations to come.

Highlights will include: • A state-of-the-art Emergency and Trauma Services Department, with 35,000 square feet of space, a 64-slice CT scan, digital X-ray, heliport and up to 40 treatment bays.

• An integrated Bayhealth Cancer Center, which will bring radiation and medical oncology together in one location to improve patient care.

• A spacious new Welcome Pavilion • A 375-space Parking Garage • A new Central Services Building

DSCC Members Snag 2011 Construction Excellence Award Winners The Delaware Contractors Association and the State of Delaware’s Office of Management and Budget handed out their yearly Construction Excellence Awards, which aim to recognize projects for their craftsmanship, design, skill, and project delivery. Several DSCC members took home awards, including: Bancroft Construction Company General Building Over $5 Million Category: East Conservatory Plaza, Longwood Gardens EDiS Company General Building Over $5 Million Category: Cape Henlopen High School and Wilmington Organic Recycling Center Nason Construction General Building Over $5 Million Category: Kent County Court House Emory Hill and Company General Building Under $5 Million Category: Energy House, Delaware Technical and Community College Wohlsen Construction Company General Building Under $5 Million Category: Nuclear Medicine Suite Renovations, Christiana Care George & Lynch, Inc. Highway Construction Under $5 Million Category: Central District Thin Overlay and Resurfacing Project; Smart Growth Category – Dover Sun Park Eastern States Construction Service, Inc. Smart Growth Category: City of Wilmington’s Combined Sewer Overflow Project Healy, Long & Jevin, Inc. Excellence in Craftsmanship Category: Boeing’s Integrated Defense Building 3-61

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Welcome New Members

Compiled by Mitch Deffner

A. MORTON THOMAS AND ASSOCIATES, INC.

Founded in 1954, Chemax Manufacturing

200 Continental Drive Newark, DE 19713 302-737-1627 www.amtengineering.com

is the leading manufacturer of heat transfer

302-651-9191 www.wiseradvisor.com/

cements providing an economical approach

This agency specializes in working with high

to improve the efficiency of a customer’s

net worth individuals, retirees and those about

externally heating or cooling systems.

to retire, business owners and businesses.

to a wide variety of both private and public

DALE CARNEGIE TRAINING OF DELAWARE

DELAWARE SETTLEMENT SERVICES, LLC

clients since 1955 with a focus on public

Ms. Elena Coarse 230 East Seneca Drive Newark, DE 19702 302-783-6500 www.delaware.dalecarnegie.com

Ms. Trish Green 930 Old Harmony Road Newark, DE 19713 302-731-2500 desettle.truenet.com

Since 1912, Dale Carnegie Training has

A full service title company, Delaware

focused on giving people in business the

Settlement Services is a prominent ser-

opportunity to sharpen their skills and

vice provider in the title industry. DSS

AT&T’s mission is to connect people with

improve their performance in order to build

incorporates the proper technology, along

their world everywhere they live and work,

positive, steady and profitable results.

with expertise, experience, and wealth

The corporation has been providing services

works, land use, and environmental concerns.

AT&T MOBILITY 2644 Kirkwood Highway Newark, DE 19711 302-731-8888 www.att.com

of knowledge to meet all of the clients’

and do it better than anyone else.

needs.

BLESSING GREENHOUSES

DELAWARE COMMUNITY INVESTMENT CORPORATION

Mr. John Hoban 9372 Draper Road.

Milton, DE 19963 302-229-9083 www.blessingsblends.com

Mr. James Peffley 2 Mill Road, Suite 102 Wilmington, DE 19806 302-655-1420 www.dcicnet.org/home.htm

INTEGRATED BENEFITS, INC.

This composite facility and greenhouse

This nonprofit corporation’s mission is to

Integrated Benefits is an employee benefits

is dedicated to sustaining Earth’s natural

serve as a vehicle for community revital-

consulting and sales business.

resources while developing premium prod-

ization by taking direct action through the

ucts for agriculture, landscape and home

financing of, and investments in, housing

INTELLITEC SOLUTIONS

gardening needs.

and related activities designed to address

Mr. Richard Sommer 2002 West 14th Street Wilmington, DE 19806 302-656-7050 www.intellitecsolutions.com

the needs of low to moderate income per-

CHEMAX MANUFACTURING CORPORTATION Ms. Susan Rappa 1025 River Road New Castle, DE 19720 320-328-2440 www.chemaxcorp.com 16

DSCC_MarApr12.indd 16

sons and areas.

DELAWARE INSURANCE AGENCY, INC. Mr. William Curry 1521 Concord Pike Wilmington, DE 19803

Ms. Kimberly Amen 1031 Liberty Road, Suite 101 Wilmington, DE 19804 302-633-4717

Intellitec Solutions provides software programs for financial management and customer relationship management.

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

KALMAR NYCKEL FOUNDATION

NEW CASTLE FARMERS MARKET

Pioneer Financial Services mission is to

Ms. Catherine Parsells 1124 East 7th Street Wilmington, DE 19801 302-429-7447 www.kalmarnyckel.org/

Greg Beecher 110 North Dupont Highway New Castle, DE 19720 302-328-4101 www.newcastlefarmersmarket.com

provide financial advisory services of the

The present-day Kalmar Nyckel serves as

The farmer’s market provides an opportunity

Delaware’s seagoing goodwill ambassador.

for individual vendors to sell produce, meat

Since 1998, the ship has served as an out-

products, fruits and sometimes prepared

reach platform for the State of Delaware

foods and beverages.

Mr. Steve Castiglione 407 Meco Drive Wilmington, DE 19804 302-945-5997 royalplus.com

and a catalyst for social and economic development.

KIND TO KIDS FOUNDATION Ms. Caroline Jones 100 West 10th Street, Suite 606 Wilmington, DE 19801 302-654-5440 kindtokids.org

highest quality to businesses, individuals and families.

ROYAL PLUS, INC.

O. A. NEWTON

This company’s main goal is helping peo-

Mr. Robert Rider, Jr. 16356 Sussex Highway Bridgeville, DE 19933 302-337-3121 www.oanewton.com

ple who have suffered property damage caused by fires, floods and other events.

Royal Plus prides themselves on getting customers back in business and back in their home.

O. A. Newton has been delivering exceptional material handling systems worldwide

SEAL COAT SUPPLY, INC.

Kind to Kids gives opportunities to foster

for plastics processors, wood-composite

children and families in poverty. Kind to Kids

lumber companies, tire manufacturers and

brings happiness to needy children by giv-

many more for the past three decades.

Mark Buckson 60 Twin Oaks Drive Dover, DE 19904 867 S. DuPont Highway New Castle, DE 19720 302-730-4791 302-312-3160 www.sealcoatsupplyinc.com

ing them wonderful experiences that they would otherwise not enjoy.

LORELTON RETIREMENT COMMUNITY Ms. Mary Anne Conover 2200 West 4th Street Wilmington, DE 19805 302-573-3580 www.lorelton.com

PETTINARO CONSTUCTION CO., INC. Ms. Andrea Finerosky 234 North James Street Newport, DE 19804 302-999-0708 www.pettinaro.com Since 1964, Pettinaro has been transformed

Seal Coat Supply is dedicated to providing top quality materials, tools, and seal coating spray units at an affordable price.

from Verino Pettinaro’s initial garage-based

This retirement community is located in the

construction business to an organization

STANDARD DISTRIBUTING CO. INC.

historic Charles B. Lore school building,

which has designed, built and currently

which offers a beautiful environment for our

manages over five million square feet of

residents. The Lorelton has offered excep-

commercial structures and residential com-

tional quality services to seniors since 1987.

munities.

Mr. Gregory Tigani 100 Mews Road New Castle, DE 19720 302-655-5514 www.standardde.com/home.php

MACY’S INTERNATIONAL, LLC

PICCOLINA TOSCANA

Founded in 1933, Standard Distributing Co.

2711 Centerville Road, Suite 400 Wilmington, DE 19808 302-478-1860 www.macys.com

is a full-service wholesale beer distributor

Macy’s, Inc. is one of the nation’s premier

Mr. Dan Butler 1412 North Dupont Street Wilmington, DE 19806 302-654-8001 www.piccolinatoscana.com/default.asp

retailers.

Piccolina Toscana is an Italian tapas res-

Ms. Wendy King 226 North James Street Newport, DE 19804 302-994-6403 newport.delaware.gov

taurant featuring dining til midnight, a lively

MID-ATLANTIC BROKERS, INC. Mr. Dennis Drake 2115 Concord Pike # 209 Wilmington, DE 19803 302-633-4100 midatlanticbrokers.com/ Mid-Atlantic Brokers help companies and individuals secure affordable health coverage.

Delaware Business | Ma rc h / Ap r i l 2012

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pastry bar, chef tastings and brunch.

PIONEER FINANCIAL SERVICES, INC. Mr. Gregory Frankos 11 Bay Street Easton, MD 21601 410-820-8844 www.pioneer-fs.com

based in New Castle, with a branch office in Dover.

TOWN OF NEWPORT, DE

One of the oldest communities in Delaware, Newport offers excellent educational, recreational and business opportunities.

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1.

1. More than 40 attendees gathered at the Courtyard by Marriott in Newark for the SBA Social Media Workshop with a panel of experts that included Mariah Calagione, Jessica Kupferman, Whitney Hoffman and moderator Lee Mikles.

2. Dan Butler of Piccolina Toscana helped bring local cuisine to the Hart Senate Office Building in Washington, D.C. for the “Taste of Delaware.”

3. Donna Stone from TD Bank shared her diverse career path with the Women in Business

State Chamber

Scene

Committee.

3.

2.

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4.

4. DSCC staff served lunch at

5.

Sunday Breakfast Mission.

5. And Santa made an appearance! Pictured here with the staff from Sunday Breakfast Mission.

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State Chamber Scene 6.

7.

6. Young Executives considered the first ever Holiday Mixer at Piccolina Toscana a great success.

7. Larry Drexler, Clint Walker, Bret Morris and Chip Rankin at the 175th Annual Dinner at the Chase Center on the Riverfront.

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8. Sara Toner, Sandra Massa and Robert Whetzel among the

8.

crowd that attended Delaware’s biggest networking event of the year.

9. Over 900 people attended the dinner held in Wilmington Hall.

9.

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State Chamber Scene 10.

11.

10. Robert F. Rider is the 61st recipient of the prestigious Josiah Marvel Cup Award.

Pictured here with Senator Chris Coons, former Gov. Pete du Pont, DSCC President and CEO Jim Wolfe, Senator Tom Carper, Tom Cooper, Bill Allan and Gov. Jack Markell.

11. First Lady Carla Markell (left) and DSCC president Jim Wolfe (right) were guests at the Business Mentoring Alliance Breakfast, presented by the Delaware Mentoring Council, in January.

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12. Keynote speaker Marvin N.

12.

“Skip” Schoenhals spoke about the importance of supporting education in the business world.

13. Tommy Cooper handed off the ceremonial big aspirin to the new Chairman of the Board of Directors, Bill Allan.

13.

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Building quality and trust with every landmark... it’s how Wohlsen works!

Three Mill Road

322 A Street

Brandywine Building

Nemours Building

233 King Street

Justison Landing

500 Delaware Ave.

Concord and Foulkstone Plazas

building opportunities Concord and Foulkstone Plazas • Spaces available from less than 500 square feet to 50,000 square feet • Convenient North Wilmington locations • Conference rooms with wireless internet • Full service café on-site • On-site day care centers • On-site management • 24-hour security

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From top and left to right: Beebe Medical Center, Army Aviation Support Facility, Kirkwood Library, Nemours Mansion & Gardens, Newark Armed Forces Reserve Center

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877.bp.group

At Wohlsen Construction we have 122 years of quality in our name. We continue that tradition with each landmark we help to create in Delaware.

Our corporate pride is best reflected by our work. To learn more about Wohlsen and how we can best work with you, please call 302-324-9900 or visit WohlsenConstruction.com

Ma rc h / Ap r i l 2012 | Delaware Business

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The Superstars in Education Awards have been presented for more than 20 years.

SEE Delaware’s students in action through an exciting video presentation.

LEARN about the newest innovative approaches to improving student achievement.

NETWORK with business and education leaders.

CELEBRATE the success of the award-winning Superstars programs and the outstanding educators who dedicate their lives to Delaware’s children.

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Save the Date

Superstars in Education Recognition Dinner May 7, 2012 Chase Center on the Riverfront 4:45 p.m. – 8:30 p.m.

For more than 20 years, the Delaware State Chamber of Commerce has been committed to supporting education in Delaware through its Superstars in Education program. Superstars in Education has honored Delaware educators who have implemented and sustained a creative, unique program, or a teaching practice that shows measurable results and raises student achievement. On May 7, 2012, the Delaware State Chamber of Commerce will honor this year’s winners. Don’t miss this opportunity to network with your colleagues and celebrate excellence in education.

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Ralph Ralph Kuebler, Kuebler, Peggy Peggy Strine Strine and and Janine Janine Sorbello Sorbello present present aa special special gift gift to to winners winners during during the the 2011 2011 Superstars Superstars in in Education Recognition Dinner.

Education Recognition Dinner.

2012 Superstars in Education Sponsors Leadership

Delaware’s Secretary of Education Lillian Lowery

Agilent Technologies, Inc. AstraZeneca Pharmaceuticals Delaware Department of Education Delmarva Power DuPont JPMorgan Chase & Co. The Rodel Charitable Foundation of Delaware

was a special guest at the 2011 Superstars in Education Recognition Dinner.

Gold

Bank of America Citizens Bank Discover Bank INGDIRECT M&T Bank PNC Bank Wilmington University WSFS Bank

Silver

Barclays Blue Cross Blue Shield of Delaware PSEG Nuclear, LLC TELEDUCTION

Bronze

Gov. Jack Markell came to the 2011 Superstars in Education Recognition Dinner to show his support to education in Delaware.

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Blood Bank of Delmarva Delaware Cadillac, Saab, Subaru & Kia Delaware Economic Development Office Delmarva Broadcasting Company Fulton Bank Glenmede Trust Company Nixon Uniform Service

Friends

Artesian Water Company Back to Basics Learning Dynamics George J. Weiner Associates W.L. Gore & Associates, Inc.

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w o N r e Regist

TM

APRIL

r e n r o C e h T g n i n r u T

2012

ing. n r o M e n O . e EDiS Institutrld of Difference. 19 A Wo

Thursday, April 19, 2012

from 7:15 a.m. to 12:30 p.m. at the Chase Center on the Riverfront.

Andrés Duany, F.A.I.A The Future of Community Architect and pioneer of New Urbanism, the international movement to end suburban sprawl, his firm’s planning practices are found in cities and towns throughout the world. A celebrated speaker and author, his latest book, The Smart Growth Manual, advances socially, economically and environmentally sustainable techniques.

John R. Patterson Changing Customer Preferences Dynamic speaker, best-selling co-author and consultant featured on ABC and Fox Business, he is a customer loyalty and leadership authority who will deliver a thought-provoking presentation based on his latest book: Wired & Dangerous – How Your Customers Have Changed And What To Do About It.

EDiS Institute Register Now: ediscompany.com/institute or call Cyndi (302) 421-2882 or email: institute@ediscompany.com

John E. Stapleford, Ph.D. The Economic Forecast Widely published expert on the economy, currently Director of the Caesar Rodney Institute’s Center for Economic Policy and Analysis and past Senior Economist for Moody’s Analytics and Director of the University of Delaware’s Bureau of Economic Research; he founded the Delaware Small Business Development Center.

All proceeds benefit vocational education.

The EDiS Institute was established to inspire and inform professionals from all industries and support vocational education.

Register Now at ediscompany.com/institute 28

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photoillustration by denee crumrine

Real Estate

The housing market is transitioning to the web, but are Realtors taking advantage?

Mortgaging the Future

By Bob Thurlow

Real estate agents at the Hockessin branch of Patterson Schwartz were crammed into their conference space during their weekly meeting, when sales manager Jason Giles asked his co-workers an important question: “Have you used Facebook at work recently?”

A lot of employers police their employees’ web browsing during work hours—Facebook’s peak usage is around 3 p.m.—but Giles had more benevolent intents. He wanted to know if his team had followed through with a recent company initiative to explore the vast reaches of the social media.

“We had 40 people in our weekly meeting and all but one raised their hand,” he says. “As a company we always try to stay in front of the curve, and I think there are a lot of folks here, across all ages, who are trying to get more into it.”

Once reserved for brooding teens and progressive tech-geeks, the landscape of social media has undergone a massive transformation over the past five years. Dancing babies, GeoCities web portals, and Tom from MySpace have been relegated to the nether-reaches of cyberspace in favor of LinkedIn, Delaware Business | Ma rc h / Ap r i l 2012

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#hashtags, and Mark from Facebook. And businesses have taken notice.

Social media has evolved from its initial intent to connect friends into a Swiss Army Knife for the digital world. Each industry has found new and boundary-pushing ways to integrate the technology into their business plans, and real estate is no different.

Some of Delaware’s larger realty companies, like Patterson Schwartz and NAI Emory Hill, have made a concerted push to actively use online networking tools as part of their overall campaign. However, as is the case with any new technology, the kinks are still being worked out, says Michele Hartlove Chynoweth, a marketing director at Emory Hill.

“It’s a struggle for some of the older people—sellers, buyers, brokers—to navigate through it and use it. They are on board, but they don’t use it to its capability. The younger ones grew up with it and are experimenting with it all the time,” she says. “It is going to be effective. There are things out there we haven’t tapped into yet, but we are growing and trying to benefit.”

There is a catch, though. Two, actually.

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Real Estate First, the new technology is widespread, but less than half of brokers have a business-related Facebook or Twitter account.

According to a recent survey conducted by Movoto.com, only 52 percent of Realtors who had accounts tweeted in the past month. Facebook fares a little better in updates—approximately 68 percent had updated recently—but still lacks a majority of users. Even LinkedIn, which has the strongest support among real estate agents at 85 percent membership, has shortcomings, as most of those connections tend to be business associates rather than potential customers.

Most importantly, almost 80 percent of Realtors surveyed said their main source of new clients come from referrals from past clients. Yard signs, company websites, online and print ads all outrank social media in terms of generating new leads. If that’s the case, why are Realtors so willing to put their eggs in that lackluster basket?

Which leads us to caveat No. 2: Most Realtors who have embraced social media don’t quite know what to do with it yet.

“I personally think everyone misunderstands social media,” says Matthew Ferrara, a social media consultant who specializes in real estate.

“People are concerned with being a big voice that they forget to be big ears. They are so concerned with what they say and out-posting others, but the true power is to use social media to listen. You need to listen.”

As things change more in realty, a reliable contact and brand identity is key.

About 72 percent of homeowners say they would use their Realtor again, so those people are by default a built-in social network for sales and leads.

Delaware’s Home Town Developer…

Building Business “From the Ground Up” since 1964.

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Commercial Real Estate

FOR LEASE

The Star Building New Class A Office Space 150,000 SF, Seven Stories Riverfront Wilmington

PETTINARO ALWAYS HAS A WIDE VARIETY OF RETAIL

“Building Delaware Together”

Bear, DE Office Space Available

OFFICE PROPERTIES, AND WAREHOUSE SPACE FOR LEASE IN DE, PA, MD AND NJ. CENTERS,

Our 4.5 million SF commercial real estate portfolio includes: London Grove Village, Fox Run Shopping Center, Community Plaza, Bayard Square, Middletown Square Shopping Center and Office Buildings, The Shipyard Center, 750 Shipyard Drive, 500 Justison Street, Riverfront Dining, The Christina Crescent Building, 901 N Market St, The Courthouse, 600 Delaware Avenue, Cornell Business Park, Tower Office Park, Orchard Commons, Tall Oaks Business Park, The Gates Building, 800 Walnut Street, The Diamond Property, Ridge Road Town Center, Spring Lake, Chadds Ford West , London Grove West, Colonial Avenue Warehouse, Northeast Warehouse, 300 E 30th Street, The Blue Hen Corporate Center, The Delaware Children's’ Museum, 2300 Pennsylvania Avenue, Eagle Plaza, Larchmont Centre, Foxmoor, Park Plaza, 13/40 Building, Fox Run Business Park, Fox Run Warehouse, Morgantown Village Shopping Center, West creek Village Shoppes, and Churchman’s Corporate Center.

Middletown, DE Office Space Available

Pettinaro Corporate Headquarters 234 N James Street Newport, DE 19804 Phone 302.999.0708

Avondale, PA Retail Spaces and Pad Sites Available

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“They don’t come from people you don’t know, they come from people you do know,” Ferrera says. “They are people who already know you and love you. Companies need to be capable of using their influence on social media to sustain their business.”

Know your customer, Ferrera says, and the product will practically sell itself.

“The real change is a demographic change. The customer has become a little younger and social media is a reflection of that. Social media didn’t cause the change, it reflects the change,” he says. “A younger cohort has become a much larger percentage, so now it’s not just the first-time buyer, but it’s also the seller who bought their house 10-15 years ago.”

Demographic changes haven’t only impacted sales, but other areas of real estate too. Craigslist and Facebook have made it easier for homeowners to rent out their homes, while increased web traffic has completely altered the state of beach rentals in Sussex, says Jim Waggoner, Vice President of Resort Rentals at Long & Foster.

“Twenty years ago, we were printing magazines as our main source of outreach. Now, the entire environment of the rental market has changed,” he says. “It used to be the customers would get their rental information in January and book early, because of a sense of urgency. Now consumers book later and utilize the Internet more, so we needed to take advantage of that.”

To capitalize on the changes, Long & Foster worked with Henry Sery, a senior online consultant with Visual Data Systems, to integrate social media and modernize the rental process and to make the customers feel like a member of the rental family. Through giveaway contests and information sharing on Facebook, Long & Foster has added more than 3,000 unique visits to its website. Oddly enough, those thousands of trips have only resulted in four direct rentals, but Sery says that isn’t a concern at the moment.

“Trying to treat it as advertising doesn’t work,” he says. “We treat it like a cocktail party, not a magazine ad. Our ultimate goal is to create a community and we want customers to feel part of our brand.”

From Architizer.com--a crowd-sourced online database of architecture— to Wellcomemat.com—a video-management service specifically designed to integrate with Facebook, Twitter, and company websites--the digital world of housing, homes and real estate have continued to expand, but all of the technological advances don’t mean much if user doesn’t know what to do with them, Ferrara says.

“It’s not about what you know, but how you use it.” n

pettinaro.com

DCA is a full-service trade association, comprised of both Merit Shop and Union contractors, designed to bring strength and unity to the construction industry in Delaware. We hold a commitment to excellence and our full service staff responds quickly and effectively to the needs of its members and the industry.

David W. McGuigan, President John J. Casey, Executive Vice President “Our Strength Lies in our Diversity” 527 Stanton-Christiana Rd., Newark, DE 19713 (302) 994-7442 Fax (302) 994-8185 www.e-dca.org Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Turning Connections Into Sales Facebook, LinkedIn and Youtube are powerful tools that can stand alone or integrate with a company’s web page, but many companies misuse them. Here are some tips from Matthew Ferrara, founder of the country’s most sought-after consulting firm, for integrating realty and social media. The tips are aimed at real estate pros, but apply to many areas of business.

Rethink your goals. Many people treat social media like an advertising tool, when instead it should become more of a source. Incorporate it with branding as opposed to their advertising and they will see results.

Divide your social spheres. With everything in one place, your news feed could become a disaster, so use the lists and filter the news. You can learn more and share with the relevant audience.

Twitter’s super power is its searchability. Go into search and type in any potential search phrase like “got a new job” or “need help selling my house.” It’s like a bionic ear—you can hear things from very far away. I make some key searches and just save them, then go back later and search again.

It’s not a sexy feature, but it gives you information.

Video is key. It’s probably as powerful, maybe more, in the long run. YouTube contributes 2 billion streams of video a day, and 24 hours of video are uploaded every minute. In realty, it’s instant gratification for the viewer. They don’t want to wait for a letter or a meeting, just a few clicks and you’re there.

Be patient. Many businesses jump in because they expect it to be an instant sales generator, but I encourage them to think differently about that. When they go to a chamber of commerce event, their goal isn’t to leave with three sales. They go to mingle, make connections. Over time, those connections will be the sales.

Read more at www.matthewferrara.com.

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2/27/12 3:31 PM

Health Care

In nine short years, Bob Laskowski has reshaped Delaware health care. A 4:30 a.m. wake-up call starts each day for the low-key Christiana Care CEO.

By Larry Nagengast | Photo by Tom Nutter

Early Rıser Bob Laskowski set out to become a doctor, not a hospital CEO. But his interest in seeing the big picture brought him to where he is today: president and CEO of Christiana Care Health System, the 17th largest in the nation when ranked by hospital admissions.

“Medicine, taking care of people, was my first love,” says Laskowski, an internist specializing in geriatric medicine. “But I was always interested in the broader scope of health, its impact on groups in the community.”

His eventual move to the management side of health care took him to the University of Pennsylvania’s Wharton School of Business for an M.B.A., and eventually to the Lehigh Valley Hospital Health Network in Allentown, Pa., before he arrived at Christiana Care in 2003.

In his nine years in Delaware, Laskowski, 59, has helped engineer the creation of the Delaware Health Sciences Alliance, an educational and research collaboration linking Christiana Care with the University of Delaware, Thomas Jefferson University and the Alfred I. du Pont Hospital for Children, and, despite perilous economic conditions, moved forward with the $210 million transformation of Wilmington Hospital. After weathering the recession, he is now focused on developing strategies to deliver more sophisticated care in a decade likely to be defined by the impact of federal health care reform legislation.

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And that’s not all. He is, officially speaking, a professor on the Jefferson faculty, overseeing Jefferson residents assigned to Christiana Hospital and giving an occasional lecture in Philadelphia. He is also a board member (and twice chairman) of the United Way of Delaware, a board member (and vice chair for six years) of the Wilmington Renaissance Corp., and board chairman of the Delaware Public Policy Institute, as well as a leader in regional and national health-care organizations.

In his spare time—yes, there is some—Laskowski reads a lot, writes poetry, plays piano and runs one marathon per year, often with some of his four adult children.

To fit it all in, Laskowski gets up at 4:30 a.m. “I’m not really big into late-night activities,” he confesses. Says Dr. Janice Nevin, chief medical officer at Christiana Care: “I don’t think he sleeps much.”

“He has been an instrumental and inspirational leader,” she says. “He has tremendous intellectual capacity. He’s very supportive, very creative, and he understands the importance in investing in people and in leaders.”

In conversation, Laskowski frequently refers to Christiana Care’s patients as “our neighbors” and asserts that it is a privilege to provide medical care for them. Those who know him well say this type of phrasing is vintage Laskowski, and they salute his community involvement.

“Whether he’s working for the hospital or for United Way, Dr. Bob has this amazing ability to have a heart for the community, understand the big issues and ask the tough questions,” says Michelle Taylor, president and CEO of United Way of Delaware.

“He’s very good at everything he does. He’s part of the community and he knows everybody in the health care business,” says former Gov. Pete du Pont, who serves with Laskowski on the Delaware Public Policy Institute Board.

Carrie Gray, executive director of Wilmington Renaissance, praises Laskowski for his ability to look at situations objectively and think strategically. “He’s not driven by ego,” she says. “He’s not looking for accolades, attention and pats on the back.”

As his associates suggest, Laskowski graciously attributes his success to the people who work with him. “Medicine in the clinical aspect is all teamwork,” he says. “It’s not the great doctor; it’s the group of health professionals working together. That’s true managerially, as well.

“Each of us does the things we’re good at and that sum is much greater than the parts. It’s a matter of the contributions of a great many people.”

Laskowski’s management style is every bit as low-key and collaborative as his share-the-credit philosophy implies, Nevin says.

“When he brings people together for a task, he’s very inclusive,” she says.

“When there’s a project, he thanks you for your leadership, for getting this done. When you feel appreciated, you want to do more.”

And, in Laskowski’s world, projects aren’t always labeled that way.

“He loves to knock on my door and say, ‘I have a management opportunity for you,’” Nevin says. “That usually means, ‘Here’s the problem. I need you to fix it.’”

As the state’s largest private employer, Christiana Care has ramped up its community involvement under Laskowski’s regime, engaging the locals much as MBNA and the DuPont Co. have in recent decades. Not only are its top managers represented on boards of nonprofits statewide, but Christiana Care has made it a management objective that all employees give back to the community in some way. “They can pick what they want to do,” he says. “Donate

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Health Care to United Way, participate in a blood drive, coach a softball team.”

Such involvement, Laskowski says, is essential to Christiana Care fulfilling his mission. “If you’re interested in health, you’ve got to be interested in the community,” he explains. “People don’t live in isolation. They live as members of families and neighborhoods. If you want to understand people, and be helpful in their health, you’ve got to be involved in the things that affect their health, which is the community in general.”

That involvement is becoming increasingly evident, Taylor says. “[Christiana Care employees] really see the connection that the health of their patients is impacted by the community they live in, the social issues that surround them, as well as the economy,” she says. “The community is the core of their work.”

While intensifying his emphasis on community service, Laskowski must also stay on top of the big-picture health issues, including those being discussed every day in the nation’s capital. Given Delaware’s proximity to Washington and his positions on the Council of Teaching Hospitals administrative board and the Health Management Academy Chief Executive Officers Forum, he says he “has made so many trips it’s hard to remember them all.” Several of those visits have been to discuss “accountable care organizations,” voluntary groups of health care providers organized to give coordinated high-quality care to Medicare patients.

“I don’t want to overstate Delaware’s role, but we haven’t been silent,” he says. “And it’s gratifying that the [Obama] administration has paid attention to us.”

The changes at the national level are hitting home. “It’s changing the way we practice, changing the way we think,” Laskowki says.

One example of that change was the creation last summer of the Christiana Care Values Institute, comprised of four Christiana Care centers—Outcomes Research, Quality and Safety, Operational Excellence and Health System Design Research— with a goal of “achieving better health outcomes at lower costs to patients, the community and the health system,” Laskowski says.

The institute, he says, “will look at what we do in critical ways.”

That, in turn, will lead to more change because, as Laskowski says, “we have to make sure that what we do makes a difference for people.”

reach the eighth floor in March and will be topped off in April, Fugeman says. Fabricated precast walls are ready for installation when the framework is in place. Inside, the major air conditioning and electrical equipment has been installed and fitting out interior walls on the first three floors has already begun.

In mid-January, the project was providing jobs for about 120 construction workers, and their numbers should grow to around 300 by summer and fall, Fugeman says.

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Wilmington Hospital Renovations: A Game-Changer Not since the New Castle County Courthouse, or perhaps the former MBNA headquarters on the northeast corner of Rodney Square has downtown Wilmington seen a construction project as large and as significant as the expanded Wilmington Hospital, Wilmington Renaissance Corp. executive director Carrie Gray says.

“It’s a game-changer, bringing more workers into the city and providing better health services for Wilmington residents,” Gray says.

The $210 million project—a nine-story tower featuring a new emergency department, a surgical suite with 13 operating rooms, a new intensive care unit and 120 private patient rooms—is on schedule, with the emergency department scheduled to open in the spring of 2013 and the other areas opening in phases until the entire project is complete in the summer of 2014, said J. Patrick Fugeman, director of design and construction for Christiana Care Health Systems.

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Ma rc h / Ap r i l 2012 | Delaware Business

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Guide to Taxes

Tax Updates for 2012 Expert Tips from the Pros at ParenteBeard

By Jeffrey W. Mitchell, Jr, CPA, MT and Randi L. Jowers, CPA, MT

In these uncertain economic times, it is important to be aware of changing tax laws and how they may affect your business and your wallet.

For 2012, tax rates will remain the same as they’ve been since 2001.

Individual tax rates on ordinary income range from 10 percent to 35 percent. There is a preferential 15-percent rate on long term capital gain income and qualified dividend income. Before the end of 2011, Congress passed a two-month extension of the 2-percent payroll tax cut, reducing the employee’s portion of the Social Security tax paid on wage income to 4.2 percent.

Also for 2012, the Alternative Minimum Tax exemption amount is scheduled to revert back to pre-2001 amounts of $45,000 for married individuals filing jointly and $33,750 for single individuals. This will cause the AMT to apply to many additional individuals unless Congress provides another AMT patch.

Many items that Congress has been keeping in the law through annual extender bills were included in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 for the 2010 and 2011 tax years. Several items of note that expired at the end of 2011 for businesses Delaware Business | Ma rc h / Ap r i l 2012

DSCC_MarApr12.indd 39

include the research and development credit and the work opportunity credit, and the 15-year recovery period for leasehold improvements, restaurant property and retail improvements.

For individuals, the deductions for elementary and secondary school teacher expenses, state and local sales taxes, mortgage insurance premiums and qualified tuition and related expenses all expired at the end of 2011.

In addition, distributions from Individual Retirement Accounts for charitable purposes are no longer tax free after 2011. Congress will need to pass another extender bill in order for these items to be brought back into the law in 2012.

Over the past several years, businesses have benefited from generous depreciation and asset expensing laws. Bonus depreciation allows taxpayers to immediately deduct a portion of the value of all assets placed in service in the first year. This provision was temporarily increased to allow 100-percent deduction for assets placed in service between September 9, 2010 and December 31, 2011. In 2012, bonus depreciation is 50 percent for Modified Accelerated Cost Recovery System (MACRS) Property, with a recovery period of 20 years or less. This includes water utility property, offthe-shelf computer software and qualified leasehold improvement property.

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Guide to Taxes Assets must be acquired and placed in service before December 31, 2012 to qualify for 50 percent bonus depreciation. Bonus depreciation is not currently allowable for years after 2012.

For 2011, businesses were able to immediately expense up to $500,000 of property placed in service during the year, as long as they did not place more than $2,000,000 of total property in service during the year. This expensing provision is provided in IRC §179. For 2012, the §179 deduction limit is reduced to $139,000 as long as the business does not place more than $560,000 of property during the year. For years after 2012, this

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is scheduled to reset to a $25,000 deduction.

Starting in 2011, brokers are required to report an account holder’s basis in securities on Form 1099-B under an amendment to Internal Revenue Code §6045 passed in the Energy Improvement and Extension Act of 2008. This change necessitated a revision to reporting requirements for sales of property and caused the creation of a new tax form, Form 8949, to report the details of these sales. For 2011, brokers were only required to report basis in stock acquired by cash after 2010. Starting in 2012, brokers are required to report the basis of mutual fund shares and stocks acquired through a dividend reinvestment program.

Starting in 2012, employers are required to report information on health insurance coverage on employees’ W-2 Forms. This requirement was added by the Patient Protection and Affordable Care Act of 2010 through the new IRC §6051(a)(14). Starting with W-2 Forms issued for the 2012 year, employers are required to report the cost of employer-sponsored group health plan coverage. The reporting is for informational purposes only and does not cause the health care coverage to become taxable to the employee.

Employers who issued less than 250 W-2s for the 2011 tax year are exempt from this reporting requirement until the 2013 tax year. IRS Notice 20129 provides detailed information on computing the reportable amount of health care and on interim reporting relief.

The future of the tax law is uncertain. Unless Congress passes a new tax law, beginning in 2013, tax rates on ordinary income will reset to the levels they were at before the Bush Tax Cuts of 2001. These rates range from 15 percent to 39.6 percent. Tax on long term capital gains will increase to 20 percent and the tax rate for qualified dividends will likely revert to ordinary income rates.

In addition to these tax increases, there will be a 3.8 percent additional Medicare tax levied on the lesser of investment income or the amount by which adjusted gross income exceeds $250,000 for married taxpayers filing a joint tax return and $200,000 for single individuals. Net Investment Income includes most types of unearned income, such as interest, dividends and capital gains. There is also scheduled to be a 0.9 percent Medicare withholding tax on wages and self-employment income in excess of $250,000 for married taxpayers filing a joint tax return and $200,000 for single individuals. Employers will begin to withhold the tax once an individual’s wages exceed $200,000.

As you can see, it is important to consider tax planning strategies in 2012 in order to take advantage of the lower tax rates and the available expensing deductions for property placed in service by businesses. To the extent possible, you should consider accelerating income into 2012 and deferring deductions. It also may be time to sell appreciated assets to take advantage of the lower long term capital gains rates. Businesses should also consider buying new property for their businesses in 2012 to take advantage of the bonus depreciation and §179 expensing deductions available this year. As always, it is important to consult your tax advisor to explore the best options available for your personal situation.

Tax laws have been changing significantly over the past few years with even more changes expected to come in the next year. Without Congressional action, there may be a considerable tax increase coming in 2013. It is important to be aware of this possibility and to plan for it in whatever ways possible to mitigate the impact of these changes. n

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Nonprofit Tax Compliance

By Jeffrey W. Mitchell, Jr, CPA, MT and Randi L. Jowers, CPA, MT Most nonprofits are not worried about the April 15 tax deadline. But that doesn’t mean they don’t need to worry about tax compliance. Now is a good time for nonprofit organizations to review their various tax filings to make sure they are putting their best foot forward and staying compliant. Some basic topics to consider are: IRS Form 990 This form is becoming increasingly important. The IRS, grant funders and individuals are using this form to learn about the organization and make conclusions about the organization’s governance policies, fiscal responsibility and tax compliance. A few areas that should be reviewed include: Mission statement – The organization should ensure that its mission is correctly reflected and described on the 990.

Program Service Accomplishments – This is an area where the organization can really market its mission and accomplishments. The organization should include a description of the program, the number of people served or touched, the impact that it has on the community, and the results of the program. It’s a great place to tell your story and demonstrate the achievements.

Board Governance – The organization should ensure that it has implemented proper policies and procedures. These include: whistleblower, document retention, conflict of interest, review of the 990 by those charged with governance and review of compensation.

List of Officers, Directors, and Key Employees – The organization should verify that is has included all key employees and properly listed all board of directors.

Payroll Taxes Management and the Board of Directors of the nonprofit need to ensure that taxes are being properly withheld and remitted. Also, organizations should review the requirements and classification of employees versus independent contractors. Changes to W-2 reporting are on the horizon and now is a good time to review what information is available from your current systems and where you need to improve.

ERISA Compliance Changes to pension rules and increased audits from the Department of Labor have highlighted the importance of ERISA compliance. Organizations should review their plan documents, policies and procedures over remittance, use of forfeitures and proper employee withholdings/matches.

By spending a few hours to review a nonprofit’s tax compliance could save a few thousand dollars of penalties and interest for noncompliance.

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2/27/12 3:31 PM

Newsbites

Compiled by Katie Dunn

the daily paper remains at $1, however the Sunday edition increased to $3.

Photo courtesy Tevebaugh Associates

Tevebaugh Associates has designed a new Apprentice and Journeyperson Upgrade Training Center in Georgetown for the Metropolitan Regional Council of Philadelphia and Vicinity Carpenters Union. The modern, energy efficient 25,000-square-foot building was designed by the Wilmington architectural firm of Tevebaugh Associates. Project Architect Bill Lenihan, AIA said the firm adopted the form and massing of Sussex County agricultural buildings to help the building fit into the rural landscape. This new training center for Carpenters Union has classrooms, administration areas and a 15,000 square foot shop with hands-on training for carpentry, scaffold building, floor laying, welding and ceiling construction. The lobby and meeting room are highlighted with timber framing that showcase the art and craftsmanship of the carpentry trade. The building was designed with metal stud bearing walls, wood trusses, wooden windows and insulated metal wall and roof panels so that the members of the Carpenters Union were able to construct the majority of their new building themselves. The construction and technology within the building incorporate green or sustainable technology, which include geothermal heating and cooling, natural daylight, natural ventilation, solar voltaic roof panels, water use reduction, and quality interior environment. It is constructed with recycled, regional and renewable materials. The Carpenters Union Training Center is the sixth building designed by Tevebaugh Associates to achieve LEED Silver Certification. The Carpenters Union Training Center is a sustainable building designed to reduce long term operating cost in addition to having the training center be an example of green design.

The News Journal Media Group launched a new subscription model for customers in February as part of a shift toward digital-first publishing. This shift includes new digital platforms for readers to access news and information such as a mobile site and tablet-friendly news reader. Subscribers may choose

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from a variety of subscription plans that include delivery of the newspaper at different frequencies, daily, weekends or Sunday only, or they may choose a digital-only plan. For the first time, subscribers will be able to see the entire printed version of the newspaper online at no additional cost. The cover price of

In December, DuPont shared its 2012 strategy of active global growth that will continue to yield strong, sustainable results this year and beyond. Ellen Kullman, chair and CEO, expects to deliver $300 million of both fixed cost and working capital productivity in 2012. In addition, DuPont is one year ahead of the original plan to deliver $130 million in cost synergies from the Danisco acquisition.

“Our long-term growth profile reflects the strength of our portfolio, innovations and ongoing benefits from disciplined productivity efforts,” Kullman said.

Integrity Staffing Solutions announced in December the launch of their new division, The Avontis Group. Based in Wilmington, Avontis will offer a variety of strategic workforce management solutions for distribution facilities with highvolume staffing requirements. The new division will enable businesses to maximize productivity and profitability by providing workforce management expertise, advanced VMS technology and innovative recruitment and retention strategies.

Katherine L. Silicato, CPA, partner of Gunnip & Company LLP, has been elected as treasurer of the CommercialIndustrial Realty Council (CIRC) of New Castle County. CIRC is a nonprofit organization which brings together members of the Delaware Valley community who are in a variety of fields relating to commercial and industrial real estate. Silicato joined the firm in 1994 and became a partner in 2010.

In January, Dr. Gary L. Wirt, vice president of Goldey-Beacom College, was elected vice chairman of the Middle States Commission on Higher Education. The commission accredits

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Newsbites colleges and universities from New York to DC, in the Caribbean, and overseas.

Wirt has served as a commissioner for six years, and chairs the finance committee for the organization. Wirt first joined Goldey-Beacom College full-time in 1988, after teaching adjunct courses for fourteen years.

The Delaware Adolescent Program, Inc. (DAPI), an alternative educational

option for pregnant teens, was awarded a grant from the Arsht-Cannon Fund at the Delaware Community Foundation to increase outreach to Delaware’s various Hispanic populations. The grant will be used to expand both middle school prevention mentoring and mentoring for pregnant teens. Funding from the grant will allow for staff focus on identifying mentors, students and partnerships within Latino communities statewide.

United Electric Supply Company of New Castle announced in January the retirement of Eugene (Gene) P. Bruni after 39 years with the company.

Bruni began as a salesman and rose to become president of the company.

During his tenure, he significantly contributed to the growth of the company from 35 employees, one location and $3 million in sales to 300 employees, 15 locations and $185 million in sales.

Calendar of Events March 5

March 15

Pre-registration required

Small Business Caucus

Environmental Committee

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12:00 p.m.-1:30 p.m.

TBD

at (302) 576-6586 or lprickril@dscc.com.

For more information, contact Denee

March 19

April 18

Crumrine at (302) 576-6564 or dcrumrine@

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Location: Medical Society of Delaware

March 6

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Networking Breakfast at Delcastle Technical High School

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Health Care Committee

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March 13

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2nd Floor

Young Executives with Geoff Sawyer

Location: Sheraton Dover Hotel

For more information, contact Matt Amis

8:30 a.m. – 10:30 a.m.

For more information, contact Lisa Prickril

at (302) 576-6566 or mamis@dscc.com.

Location: University and Whist

at 302-576-6586 or lprickril@dscc.com.

Location: DSCC Chairman’s Room,

April 25

For more information, contact

Evening Networking Mixer at Delaware Art Museum

Denee Crumrine at (302) 576-6564

March 27

or dcrumrine@dscc.com.

Transportation Committee Meeting with DEDLT Secretary Shailen Bhatt

March 14, 2012

8:00 a.m.-9:30 a.m.

Location: Delaware Art Museum

SBA Workshop with Robert Johnston

Location: DSCC Board Room

For more information, contact Lisa Prickril

7:30 a.m. – 9:30 a.m.

For more information contact Greg Gross

at (302) 576-6586 or lprickril@dscc.com.

Location: TBD

at (302) 576-6568 or ggross@dscc.com.

5:30 p.m.-7:30 p.m.

April 25

For more information, please contact Denee Crumrine at (302) 576-6564

April 17

SBA Workshop

or dcrumrine@dscc.com.

Networking Breakfast at Frawley Stadium

TBD

7:30-9:00 a.m 44

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Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Affiliates Update

Members of the Small Business Alliance Board of the Directors met with the 2011 Superstars in Business winners and presented them with ceremonial plaques.

Small Business Alliance

By DENEE CRUMRINE

The Small Business Alliance continued celebrating last year’s Superstars in Business by visiting the winners on site with a small gift commemorating their accomplishments. It also kicked off the New Year with some changes in the Board of Managers. Many thanks to Steve Lehm of VanDemark & Lynch for his service as a Small Business Alliance Board of Managers co-chair. He will now chair the 2012 Superstars in Business Awards program. Chip Rankin of EBC Carpet Services Corporation was welcomed as new co-chair, joining Pam Cornforth of Ronald McDonald House, co-chair since 2010. Other changes include the addition of Greg Ballance of Diamond Technologies and Kristen Shaw of ParenteBeard LLC to the Board, and Janice Giannini of Paradigm Associates LLC moving to our Senior Advisory Council. The Small Business Alliance is grateful for the time and energy Board members commit every year.

After a sold-out Superstars in Business luncheon, the Small Business Delaware Business | Ma rc h / Ap r i l 2012

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Alliance headed to each winner’s business to present them with a small gift. We congratulate once more: The Ministry of Caring, Inc., Corexcel, Evironmental Alliance, Inc., and EDiS Company for their outstanding achievements. Learn more about the Superstars in Business program at www.dscc.com/superstarsinbusiness.

Retail Council

By Greg Gross

The DSCC Retail Council emerged from a dormant winter ready to get rolling in 2012.

On the top of DRC’s list are two pieces of legislation we hope to introduce to the Delaware General Assembly this session.

The first, spurred on by Stanley Hart, the owner of Al’s Sporting Goods, deals with truth in advertising and accurate record keeping.

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Affiliates Update are often here and gone with little to no record-keeping and less accountability.

That combination can be dangerous for consumers.

We researched legislation in other states, including Maryland, that requires so-called secondhand precious metal businesses to deal strictly from a licensed, permanent address. Stricter licensing, regulations and more transparency are needed to keep customers protected.

The second potential bill deals with restitution enforcement. If someone embezzles money, and is ordered by the courts to pay restitution, what happens when they up and stop?

We are hoping to put something on the books that would enforce restitution payment. The State of Arizona has its restitution court. Delaware doesn’t necessarily need that, but when people embezzle from businesses, we want to make sure they are following through with payments.

Our chairman Ken Brennan and the rest of the Delaware Retail Council are ready for a busy 2012. The DRC’s planning committee is looking to expand, and get more people involved. So we’re developing a program that’s going to reach out to smaller retailers like jewelry stores, furniture stores, auto parts stores and others and getting them involved.

The Partnership, Inc.

By Janine Sorbello

Winners of the 2011 Superstars in Business awards included the Ministry of Caring (previous page), EDiS Company (top photo), and Environmental Alliance (bottom).

The DSCC and education are never too far apart. At our Annual Dinner this year, keynote speaker Marvin “Skip” Schoenhals spoke about the importance of education reform and the business community’s involvement.

He said, “The involvement of Delaware’s business community must increase. In every place in the country where strong educational reform is taking place, the business community is deeply involved. We have to be highly engaged, advocating that schools produce graduates ready for life’s experience or college.”

The Partnership Inc.’s flagship program, Superstars in Education, is in full swing. Our biggest event, the Superstars in Education Dinner, will be held May 7, at the Chase Center on the Riverfront where we will honor Delaware educators who have implemented and sustained a creative, 46

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unique program, or a teaching practice that shows measurable results and raises student achievement.

“Honoring just some of the amazingly talented, innovative and dedicated teachers throughout Delaware is a joy for my colleagues and me on the Superstars in Education Selection Committee. A special thanks to all teachers for the value they add to the lives of the youth of Delaware today as they develop into the leaders and workforce of tomorrow,” says Cathy MacFarlane of INGDIRECT, a Superstars in Education Gold Sponsor.

In that spirit, we are happy to announce the launch of www.superstarsineducation.org. Our new website was created by ING Direct, and contains information about sponsorship opportunities, plus great information about past Superstars winners, including pictures, videos and print articles.

We’ve also launched a new Twitter account, which we’ll use to tweet valuable information about the dinner, our Superstars winners, and more.

Follow us @SuperstarsEduDE today.

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

DEMEP Profile

The FMC Biopolymer Business manufactures products for the food and pharmaceuticals industries.

The Ties that Bind: DEMEP, FMC BioPolymer Division Work to Improve Efficiency

By Eileen Smith Dallabrida

For half a century, FMC Corporation’s BioPolymer Division has operated a plant in Newark that produces excipients, organic compounds made from wood pulp that are widely used to bind or add viscosity to food and medicine.

If you ever wondered how the active ingredient in St. Joseph’s Aspirin for Children is delivered through an easily swallowed pill, thank excipients. The compounds also enable particles to be suspended in salad dressings, protein shakes, milk of magnesia, cough syrups and scores of other products.

FMC—once known as Food Machinery Corporation—also produces good jobs. In Newark, 105 people are employed at the plant, with wages starting at about $25 an hour. Forty-two percent of employees have worked at FMC for 20 years or more. The 26-acre plant pumps $23 million into the local economy each year, through wages, supplies and other expenditures.

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Based in Philadelphia, FMC Corporation is a global leader in agricultural, specialty and industrial chemical markets. The company’s products and applications cover a wide range of uses to increase food production, enhance medicines, food and energy storage, and to clean soil, water and air. The FMC BioPolymer business manufactures products for the food and pharmaceutical industries in Europe, Asia and Maine, in addition to Newark, which specializes in sophisticated goods for such customers as AstraZeneca, Pfizer and Nestle.

“We’ve always been the plant that takes on the difficult products our competitors can’t copy, and then develops the new products that add value for customers” says Graham Moore, FMC Newark plant manager.

FMC is intent on growing that lucrative segment of the market.

Newark had doubled production over the past 15 years, but was at risk for being passed over for expansion in favor of a location in Asia, where labor costs are lower.

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DEMEP Profile analyses, and has started using ultrasonic In short, the local plant needed to prove and infrared diagnostic devices to detect tiny itself by raising the bar even higher. problems before they escalate. That enables To find ways to squeeze new efficienworkers to make small adjustments or repairs cies out of the operation, FMC turned to before serious problems develop. As a result, the Delaware Manufacturing Extension the rate of emergency work declined has by 30 Partnership, which helped management to percent, and continues to improve. arrange for a training grant through the Moore compares the process to fixing a Delaware Economic Development Office. loose handle on a kitchen sauce pan.

Accredited by the National Institute for “If the handle is wobbly, you look and see Standards and Technology, DEMEP’s misthat the screws are backing out a bit—then sion is to substantially improve the quality, you take care of it immediately, rather than productivity and profitability of manufacwaiting until some future convenient time,” turers in the state by identifying, transferhe says. ring and implementing best practices.

Taking a proactive approach to maintenance “With a greater emphasis than ever on also will pay off in safety. the bottom line, we are showing manufac“We want to avoid situations where a workturers low-cost ways to make their operaer is on his hands and knees in the middle of tions more efficient,” says Steve Quindlen, the night trying to fix something because those DEMEP executive director. “We are pasare situations that are inherently hazardous,” sionate about teaching manufacturers to he says. “The wrench is much less likely to slip succeed in a fiercely competitive marketFMC plant manager Graham Moore is intent on growing when you are doing routine maintenance in a place.” his segment of the market. DEMEP can help. nice, brightly lit spot on the day shift.

One of the most effective ways to “To further boost productivity, there’s a bucket of small jobs, each lastincrease productivity is to decrease down time, the minutes and hours ing an estimated 15-20 minutes, which mechanics can take on if they findrained away by bottlenecks in work flow or breakdowns of machinery. ish their regular work earlier than planned, Moore says. Positive reinforceThe plant already had an admirable overall equipment efficiency (OEE) ment is used to recognize employees for efficiency and effectiveness.” rate of 82 percent. The lofty goal is to increase OEE to 90 percent by Parts and tools are pulled in advance and placed in clearly marked bins 2015. with work orders attached to the front.

“FMC is a very clean plant, not your typical 1960s-style facility,” says Parts were reorganized to make them more accessible, with an easy-toJim Jones, DEMEP’s manufacturing specialist. “Essentially, our mission read Excel software program as a guide. In the past, operators tended to was to bring fresh eyes to the plant and find ways to improve mainteavoid a cumbersome computer procedure for placing work orders. After nance.” the system was replaced with a simple touch screen, the number of operaDEMEP meticulously mapped operations at the plant and analyzed tors placing maintenance work orders increased by a factor of 10. processes for maintaining equipment. They discovered that a significant FMC also compiled a list of “bad actors,” equipment that was chroninumber of repairs were done on an emergency or unplanned basis. By precally problematic. Some of these items can be addressed through world dicting and scheduling repairs, FMC could minimize disruptions and keep class maintenance practices; some will require significant investment to the work flowing. replace.

“If you know from your experience that a drive motor lasts five years, As a result of improved Planning and Scheduling programs, completed you don’t have to wait for it to stop working before you replace it,” Jones job orders are up 30 percent. OEE improved two points in 2011, and the says. “Instead, you can block out the eight hours you need for the job durplant is looking forward to continuing the upward trend. ing your down time so it doesn’t disrupt production.”

“It was a choice of keeping doing what we were doing, pouring time and Workers were trained in total productive maintenance—known as money into it, or adopting a different approach,” Moore says.

TPM—in small groups of about 12, with each group devoting an entire Instead of broadening operations in Asia, FMC decided to invest in its week to the process, which represented a significant investment in resourcNewark location, based on the quality of production and support from es. state government. This year, the 145,000-square-foot plant will be expand“We believe learning best practices and becoming a world-class operaed 25 percent. Eight workers will be added to the payroll. tion are worth the investment,” Moore says. “It pays off in future produc“That gives us a great sense of security about the 105 people who tivity and better morale.” already work here,” Moore says. “DEMEP helped to safeguard the future To accurately predict when maintenance is imminent, FMC measures of this plant for many years to come.” such factors as the vibration and temperature of machinery, performs oil 48

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Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

professional graphic design solutions for all your advertising and marketing needs

FIND US:

www.greengigi.com

P.O. Box 232 Wilmington, DE 19899 Phone 302.655.7718 Fax 302.655.7918 rdubroff@finalfocus.com

Delaware Business | Ma rc h / Ap r i l 2012

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see it all at www.finalfocus.com

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Chamber

Committees & Forums State Chamber members play a visible, active role in the business community by serving on committees. If you would like to get involved, contact the committee’s Chamber representative or register online at www.dscc.com.

Ambassador Committee: The Ambassador Committee is a specially chosen group of volunteers that assists in increasing membership and retention, and acts as a liaison between the State Chamber staff and the membership at large. Contact: Chuck James at (302) 576-6562 or cjames@dscc.com.

Benefits & Services Committee: This committee identifies group-oriented benefits, such as health care coverage, dental and vision care, discounted office supplies, phone service, direct mail, radio advertising and much more to help Chamber members be healthy and competitive. Contact: Denee Crumrine at (302) 576-6564 or dcrumrine@dscc.com.

Education & Development Committee: This committee provides practical, valuable and affordable education and development programs to help existing members and potential members be more successful. Contact: Denee Crumrine at (302) 576-6564 or dcrumrine@dscc.com.

The Employee Relations Committee: This committee meets each month and brings in knowledgeable experts to discuss ever-changing labor and employment laws and regulations that impact all Delaware businesses. The interaction between speakers and committee members provides a cost-effective and efficient way to obtain up-to-date information that helps employers create or modify personnel policies and procedures before legal problems arise. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com.

Environmental Committee: Working closely with the Department of Natural Resources and Environmental Control (DNREC), members are involved in the review and shaping of environmental legislation and regulation. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com.

Health Care Committee: Members discuss key health care issues facing Delaware businesses and provide feedback to the Chamber legislative team to assist in formulating policy.

Contact: Matt Amis at (302) 576-6566 or mamis@dscc.com.

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Holding Company Committee: Provides a forum to discuss issues affecting Delaware holding companies on the state and national levels. Contact: Matt Amis at (302) 576-6566 or mamis@dscc.com.

Legislative Forum: Members, lobbyists and legislative representatives work together to address legislative issues of interest to Chamber members. Monthly lunchtime meetings feature guest speakers who cover current topics of interest to the business community. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com.

Tax Committee: This committee reviews tax legislation and lobbies for the reduction of personal and business taxes in Delaware. Contact: Greg Gross at (302) 576-6568 or ggross@ dscc.com.

Transportation Committee: The transportation committee creates a unified voice when making recommendations to the Delaware Department of Transportation. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com.

Women in Business Forum: The Women in Business Forum was formed to forge relationships, break boundaries and build a better business environment for women in our community.

Former guest speakers include First Lady Carla Markell, Gov. Ruth Ann Minner, Family Court Chief Judge Chandlee Kuhn, State Reps. and Sens., and business leaders. Contact: Katie Dunn at (302) 576-6578 or kdunn@dscc.com.

Young Executives Committee: The Delaware State Chamber of Commerce’s newest committee was formed to encourage young executives in Delaware to be involved in the Chamber, network with other young professionals and further their business growth. The Young Executives Committee, for professionals between the ages of 21 and 40, aims to develop Delaware’s young workforce through professional business networking and personal growth. Contact: Denee Crumrine at (302) 576-6564 or dcrumrine@dscc.com.

Ma rc h / Ap r i l 2012 | Delaware Business

2/27/12 3:31 PM

Delaware State Chamber of Commerce

Small State. Big Benefits.

The State Chamber Health Plan The cost of employee health care is a top concern among Delaware business owners. DSCC has devised an affordable, quality health care plan for its members. Blue Cross Blue Shield of Delaware announced new reduced rates and added an additional lower-cost plan choice. Visit www.dscc.com/healthplan. htm today or call (302) 576-6580 for more details.

bers). Call (302) 655-7221 for more information.

Prescription Drug Discount Card The Delaware Drug Card will provide savings of up to 75-percent on prescription drugs at more than 50,000 pharmacy locations across the country. The Delaware Drug Card has no restrictions to membership, income or age, and you are not required to fill out an application. This program helps all residents of Delaware afford their prescription medications. For more information, go to www.dscc.com/rxdiscount.htm.

DSCC Affinity Credit Card with WorldPoints Rewards The DSCC affinity card by Bank of America is a business credit card offered exclusively to State Chamber members that also offers a rewards program for discounted airline tickets, free hotel nights and car rentals and more. The Chamber affinity card with WorldPoints® lets members combine points from personal and business cards to get rewards even faster. Call (800) 5988791 to apply, mention priority code FABLHRAQ.

Discounted Cell Phone products and Service State Chamber members can get a 10-percent discount from T-Mobile on qualifying monthly recurring charges and other special offers. Email Melissa Williams at melissa.williams2@tmobile.com to learn more about this benefit.

Dental and Vision Plan Dominion Dental Services provides dental and vision benefits on a group and individual basis with competitive, member-exclusive rates. Dental care coverage for most diagnostic and preventive services is 100 percent with up to 80 percent coverage for restorative care including fillings, root canals, crown and bridge work, periodontal treatment, oral surgery and more. Go to www. dscc.com/chamber/dental_plan.aspx or call (888) 518-5338 for more information. No application fee for DSCC members.

Notary Service Did you know that Notary Public services are free for Chamber members? Call (302) 655-7221 to make an appointment to stop in for a notary seal on your documents.

Delmarva Broadcasting Company Fifteen-percent in bonus airtime on commercial orders placed by new advertisers on any Delmarva Broadcasting radio station.

Contact Mike Reath at mreath@dbcmedia.com or call (302) 4782700 for more information.

Constant Contact Email Marketing Service State Chamber members are eligible to receive discounts on their Constant Contact account subscriptions. Members can save 20-percent if they prepay for 6 months and 25-percent if they prepay for 12 months. That is a 10-percent deeper discount than what is available to other customers. To sign up, visit the Constant Member-to-Member Contact link on the State Chamber’s Discount Directory members-only page or call (866) 876-8464 to activate your member discount.

State Chamber members offer substantial savings on products Access full details on these benefits of and services to fellow members. membership in the members-only section To see the full list of discounts of the DSCC website. For more informaonline, visit www.dscc.com tion about obtaining your company’s and click on Member2Member members-only login credentials, please Discounts. email webmaster@dscc.com.

W.B. Mason Office Supplies W.B. Mason offers Chamber members exclusive deep discounts off their most commonly used items. Discounts are up to 90 percent. Contact Doreen Miller for more information at doreen. miller@wbmason.com or (888) 926-2766, ext. 8358.

Blood Bank Membership Member companies with five employees or less are offered unlimited group coverage in the Blood Bank of Delmarva. Call (302) 655-7221 for more information.

Certificate of Origin Documents Certificate of Origin documents are $20 for Chamber members ($100 for non-mem-

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For Assistance,

Call the chamber The State Chamber of Commerce staff works for you, serving nearly 2,800 member companies and organizations statewide.

This State Chamber staff directory lists phone numbers and Email addresses, as well as individual areas of responsibility.

If you need business assistance or information, please don’t hesitate to call.

James A. Wolfe President & CEO Marianne K. Antonini Sr. Vice President Finance & CFO

576-6560 jwolfe@dscc.com 576-6567 mantonini@dscc.com

A. Richard Heffron Sr. Vice President Government Affairs

576-6563 rheffron@dscc.com

Janine G. Sorbello Sr. Vice President Education & Exec. Director, The Partnership Business Mentoring Alliance Principal for a Day Superstars in Education

576-6575 jsorbello@dscc.com

John H. Taylor, Jr. 576-6590 Sr. Vice President & jtaylor@dscc.com Exec. Director, Delaware Public Policy Institute Matt Amis Communications Manager Delaware Business Production Website Health Care Committee Holding Company Committee

576-6566 mamis@dscc.com

576-6564 dcrumrine@dscc.com

Katie Dunn Communications & Events Associate Women in Business

576-6578 kdunn@dscc.com

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576-6569 leriksen@dscc.com

Gregory L. Gross Director of Government Affairs Employee Relations Committee Environmental Committee Legislative Forum Tax Committee Transportation Committee

576-6568 ggross@dscc.com

Chuck James Account Executive Ambassador Committee

576-6562 cjames@dscc.com

Lisa Prickril Events Manager Young Executives Committee

576-6586 lprickril@dscc.com

Arlene M. Simon Account Executive

576-6576 asimon@dscc.com

Bill Stephano Director of Membership

Denee Crumrine Program & Communications Specialist Young Executives Committee Manager, Small Business Alliance Benefits & Services Committee Education & Development Committee

Cheryl Corn Sr. Vice President Communications Executive Assistant to the President

Linda D. Eriksen Accounting Associate

576-6574 bstephano@dscc.com

Patrina Wallace Information Secretary

655-7221 pwallace@dscc.com

Miller Publishing, Inc. Fred Miller President, Miller Publishing, Inc. Advertising Sales

576-6579 fmiller2@dscc.com

Delaware State Chamber of Commerce

576-6572 ccorn@dscc.com

1201 N. Orange Street, P.O. Box 671 Wilmington, DE 19899-0671 (302) 655-7221 / Fax (302) 654-0691 (800) 292-9507 Kent & Sussex counties www.dscc.com Blog: dscc.wordpress.com facebook.com/delawarestatechamber flickr: flickr.com/dscc twitter: @Destatechamber

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