Delaware Business Magazine March/April 2016 by Delaware State Chamber of Commerce

DELAWARE

BUSINESS March/April 2016 $3.00

Bayhealth Expansion IN SOUTHERN DELAWARE

A Publication of the Delaware State Chamber of Commerce

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2/5/16 12:21 PM

2016 Marvel Cup recipient O. Francis Biondi, Esq. with DSCC President Rich Heffron and Governor Jack Markell

In this Issue

Departments Message from the Chairman.................. 2

Features

Legislative Priority................................... 3

DELAWARE’S COASTAL ZONE ACT: A CALL FOR MODERNIZATION......................... 18

Message from the President.................. 4

BAYHEALTH HOSPITAL EXPANSION IN SOUTHERN DELAWARE.............................. 23

Member News and Notes....................... 5

BY PAM GEORGE

HEALTH CARE & INSURANCE................................................................................... 23

Q&A: Secretary of Education Steve Godowsky

Delaware: Home to Advanced Manufacturing in Medical Technology What’s Ahead for Healthcare Insurance in 2016

Nonprofit Spotlight: Delaware Humane Association

BY DON FULTON

Business Spotlight: Comcast

TAX AND FINANCIAL SERVICES............................................................................... 30

Welcome New Members....................... 13

New Leadership at BDO Chamber Scene...................................... 16

BY DANTE LAPENTA

Retirement: A Balancing Act Newsbites................................................ 46

CONSTRUCTION AND REAL ESTATE......................................................................... 35 Deep Roots in Delaware: Q&A with DCA’s John Casey Delaware Competes in the Region

Calendar.................................................. 46

BY LARRY NAGENGAST

Chamber Committees........................... 49

CAREER SERVICES AND INTERNSHIPS ................................................................... 42

Chamber Member Benefits.................. 50

Higher Ed: The Job Path The Value of Internships

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

BY LARRY NAGENGAST

On The Cover

Mike Ashton of Bayhealth Medical Center PHOTO BY NICK WALLACE DELAWARE BUSINESS | Ma rch/ Apri l 2016

Volume 21, 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. 1

Message from the Chairman Let’s do this together I am honored to have this opportunity to work with all of you, the leaders of Delaware’s business community, as we continue to move our organization forward over the next few years. Mark Stellini did a lot for Delaware Chip Rossi during his time as chairman of this organization and together, we can keep that momentum going in the months to come. Our role at the Chamber is to support businesses of all sizes by advocating on legislative issues like the state budget or the Coastal Zone Act, promoting local leaders through programs like Superstars in Business and Superstars in Education, and helping build important relationships through activities like the Delaware Networking Station. We work together with key leaders throughout the state to drive towards a better, brighter future … a future that offers good jobs, good schools, strong and safe communities, and a diversity of abilities and people who together build one Delaware. This is an important time for our state. Delaware is facing economic, social and political changes and challenges over the next few years that could affect the quality of life for future generations. As we progress through this election year, we must keep in mind that it takes strong leadership to manage through change. I am counting on us to have the courage to tackle the challenges head on. I know you believe in what we do. I do too. Together we can create a better Delaware.

Chip Rossi Consumer and Global Wealth & Investment Management Risk Executive and Delaware Market President Bank of America

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

DELAWARE BUSINESS EDITORIAL STAFF Salvatore J. “Chip” Rossi A. Richard Heffron Chairman President

Rana Fayez Editor

Christina Jones Graphic Design

Scott Malfitano CSC – Corporation Service Company Nicholas Marsini PNC Bank, Delaware Chad Moore The Bellmoor Inn & Spa Dennis M. Salter Summit Realty Advisors, Inc.

Mark Stellini Assurance Media, LLC Mark Turner WSFS Bank Richelle Vible Catholic Charities of Delaware Katie Wilkinson Fulton Bank, N.A.

BOARD OF DIRECTORS Donald T. Fulton Salvatore J. “Chip” Rossi George J. Weiner Bank of America Associates CHAIR

VICE CHAIR

Gary R. Stockbridge Delmarva Power TREASURER

Barry Crozier Belfint, Lyons & Shuman

Martha S. Gilman Gilman Development Company Michael Houghton Morris, Nichols, Arsht & Tunnell, LLP

BOARD OF GOVERNORS William R. Alan Delaware Community Foundation

John (Jack) Healy III Healy Long & Jevin, Inc.

Roy Proujansky, MD Nemours Children’s Healthcare System

Tony Allen Bank of America

Rita P. Hollingsworth

Theodore J. Prushinski Citizens Bank, N.A.

Stephanie Andrzejewski AstraZeneca Pharmaceuticals LP

Timothy J. Houseal Young Conaway Stargatt & Taylor, LLP

Steve Baccino Delmarva Power

Christopher L. Kenny ShopRites of Delaware

Michael Ratchford W.L. Gore & Associates, Inc.

Michael B. Berardi Wohlsen Construction Company

Richard Kenny ShopRites of Delaware, Retired

Robert (Rob) Rider, Jr. O.A. Newton

Murray Berstein Nixon Uniform Service, Retired

Bernhard Koch AAA Mid-Atlantic

John S. Riley Ashland, Inc.

Julian H. “Pete” Booker The SmartDrive Foundation

Nicholas P. Lambrow M&T Bank

William B. Robinson George & Lynch, Retired

Jennifer Gimler Brady Potter Anderson & Corroon LLP

Richard H. LaPenta Insurance & Financial Services, LTD

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

Dr. Mark T. Brainard Delaware Technical Community College

Stephan Lehm VanDemark & Lynch, Inc.

James Randall Caldwell Staffing

Rhett Ruggerio Ruggerio Willson & Associates, LLC Greg Sawka Bancroft Construction Company

Kevin C. Broadhurst Comcast

Alan Levin SoDel Concepts

Robert L. Byrd The Byrd Group

Renee Lewandowski Agilent Technologies

Timothy J. Constantine Highmark Delaware, BCBS

Andy Lubin Delaware Financial Group

Fred C. Sears, II Delaware Community Foundation Retired William Smith Environmental Alliance

Thomas J. Cooper Cooper Realty Associates

Hinton J. Lucas, Jr. DuPont, Retired

W. Laird Stabler, III Laird Stabler & Associates, LLC

Charlie Copeland Associates International, Inc.

William E. Manning Saul Ewing, LLP

Grace Stockley FideliTrade, Incorporated

Ernest Dianastasis CAI

Guy Marcozzi Duffield Associates, Inc.

Richard K. Struthers Ashford Point

Brian DiSabatino EDiS Company

Paul M. McConnell McConnell Development, Inc.

Dian C. Taylor Artesian Water

E. Andrew Disbatino EDiS Company, Retired

Bonnie Metz Verizon, Delaware

James A. Tevebaugh Tevebaugh Associates

Denis Dunn AT&T Delaware

Calvert Morgan, Jr. WSFS Bank

William M. Topkis

G. Kevin Fasic Cooch & Taylor, P.A.

Peter Morrow The Welfare Foundation

Jeffrey M. Fried Beebe Healthcare

Terry Murphy Bayhealth Medical Center

Julie Garner AstraZeneca Pharmaceuticals LP

Janice E. Nevin, M.D, MPH Christiana Care Health System

Dave Hargadon TD Bank

Brian Nixon Invista

Pete Hayward University of Delaware Retired

John S. Owens Capital One

Michael S. Uffner AutoTeam Delaware Clinton Walker Barclaycard US William S. Wallace JPMorgan Chase Robert W. Whetzel Richards, Layton & Finger Stuart Widom Calpine Harry L. Williams Delaware State University

STAFF A. Richard Heffron President

Mark A. DiMaio Director, The Partnership, Inc.

Chuck James Senior Vice President, Membership

Marianne K. Antonini Sr. Vice President & CFO

Linda D. Eriksen Accounting Associate

Fred Miller Advertising/Retention

Cheryl Corn Executive Assistant to the President, Senior Vice President, Communications

Ken Evans Account Executive

Bill Osborne Interim President, DPPI

Rana Fayez Communications Manager

Kelly Wetzel Program & Communication Specialist

James DeChene Director, Government Relations

The mission of the DSCC is to promote a statewide economic climate that enables businesses of all sizes and types to become more competitive in a constantly changing, increasingly global, and unpredictable environment. The Chamber will provide valued services to members; it will serve to be recognized as the primary advocate in the state for business interests.

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

LEGISLATIVE PRIORITY

Modernizing the Coastal Zone Act

PHOTO BY DICK DUBROFF/FINAL FOCUS

BY JAMES DECHENE

FOR MORE THAN 40 YEARS, the Coastal Zone Act has set Delaware apart for companies looking to conduct business on Delaware’s coast. Whether it was meant to eventually force manufacturing and industry to “wither on the vine” or to balance the types of allowable companies with keeping our natural resources pristine, it has created a logjam in the process. Regardless of the intent of the legislation, it is clear that Delaware’s Coastal Zone Act must be modernized in order for Delaware to grow. There are a number of large economic development projects underway in and around Delaware, including the redevelopment of Sunoco’s Marcus Hook site, of which 40-plus acres are located in Delaware. To date, Sunoco has not indicated any plans for development on that ground, most notably due to conforming to the Coastal Zone Act. The redevelopment of the former Claymont Steel plant is another potentially huge economic development project to bring jobs to Delaware, and hurdles continue to mount for next stage planning. The world economy has changed significantly since 1971, and the manufacturing world has changed with it. It is readily apparent that manufacturing is not as it once was, and for modern manufacturing plants, whether making cars, medical equipment or other products, the focus is on clean and efficient production. Companies looking for manufacturing and production sites expect the process to be clear, timely, and reasonable, and unfortunately right now that is not a process Delaware can provide. There is a balance to be reached between protecting the thousands of acres of land within the Coastal Zone that have not seen, and should not see, commercial development and allowing those sites sitting abandoned, underutilized or other properties that have a history of commercial use prior to the Coastal Zone Act enactment in 1971 to be actively, and easily, used. Plans do not, and would not, include refineries or DELAWARE BUSINESS | Ma rch/ Apri l 2016

smelting plants as acceptable in the Zone, but instead focus on bringing high tech, efficient manufacturing and other related businesses to Delaware. Delaware is currently at a crossroads in its history. The fourlegged stool that has been the primary backbone of our economy in recent years—cars, chemicals, chickens and credit cards—has

changed dramatically. As our jobs shift away from the chemical industry, Delaware must make itself as attractive as possible in order to bring new business to the state, and modernizing the Coastal Zone Act is a lynchpin to that success. To that end, the State Chamber will begin, and lead, the discussions and debate surrounding how to modernize the Coastal Zone Act. The continued future of economic development in Delaware will be predicated upon the outcome of what will be undoubtedly be a heated debate. Our message is, and will remain clear: Delaware cannot afford to have its economic policy dictated by extreme or unreasonable elements of the environmental activist community if there is to be the future successful economic growth this state needs to survive. 3

Message from the President Spring is finally just around the corner, a time when the General Assembly returns to Dover after the annual budget break. During the past few weeks, the 12 member Joint Finance Committee has been holding sessions hearing budget presentations from state departments and comments from interested parties. The Rich Heffron committee will then spend the coming months discussing spending options. At the same time, leadership of both Houses will be meeting with each other’s respective caucus and members of the Joint Finance Committee, along with the administration, to determine how to shape a balanced budget for FY17. Much of what they decide will be influenced by the Delaware Financial Advisory Council’s (DEFAC) monthly revenue projections. Particular attention will be paid to the May report for modeling a draft of the FY17 budget, while the final DEFAC projection in June will allow them to apply the finishing touches before presenting the budget bills to members of the General Assembly for approval. This is a process that has worked well for the past 45 years, but there are always contentious issues. Of those receiving

attention this year, the size of a pay raise for state employees and the Governor’s proposal to control medical costs will be among the most hotly contested. If the funds are available, a pay raise is justified for state employees. Governor Markell’s proposal to control medical costs is by slightly increasing state employee contributions for health insurance costs. Furthermore, he proposes the institution of a Health Savings Plan option for current employees and as the sole option for new hires. This is a good strategy, although it is not a long-term solution for controlling rapidly rising health care costs. In the last several years, those of us in the private and nonprofit sectors, along with most local governments, have found it necessary to make similar decisions. Those with personal experience can tell you these changes to employee health care plans are not easy, but they are necessary. The bottom line is that our state still faces obstacles including long-term revenue concerns, an improving public education system that is still far from what we would like it to be, inconsistent economic growth, statewide public safety and drug addiction problems, growing medical costs, and limited funding to meet essential infrastructure needs. In order to address these issues, a good faith cooperative effort by the business community, nonprofit and, public sectors along with the citizens of Delaware is a necessity.

LEGISLATIVE BRUNCH MANUFACTURING CONFERENCE

Presented by:

Tuesday, March 22, 2016 9:00 a.m. - 12:30 p.m.

DELAWARE TECHNICAL COMMUNITY COLLEGE Terry Campus, Education Technology Building 100 Campus Drive, Dover, DE 19904

$50 DSCC Members / $75 Future Members Sponsorship and exhibit opportunities are available Contact Kelly Wetzel at kwetzel@dscc.com or (302) 576-6564 Gold:

Silver:

Bronze:

Sponsors as of 2/11/16

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Member

news&Notes O. Francis Biondi, Esq. Awarded Josiah Marvel Cup The Delaware State Chamber of Commerce awarded its prestigious Josiah Marvel Cup Award to Delaware attorney O. Francis Biondi, on Monday, January 11, 2016 at the Chamber’s 179th Annual Dinner. The event, held at the Chase Center on the Riverfront, attracted almost 1,000 business leaders, elected officials and state dignitaries. The award presentation—which is kept secret until the night of the dinner—was just one highlight in a night focused on the Delaware business community. The evening’s program included a keynote address by president and CEO of The Nemours Foundation, David J. Bailey, MD, MBA. In 2015 Nemours Children’s Health System celebrated the 75th anniversary of the first patient being admitted to the Alfred I. duPont Institute. Dr. Bailey talked about the statewide impact of the organization in Delaware. Nemours was the presenting sponsor for the State Chamber’s premier event. The Marvel Cup Award was established in 1951 to honor a Delawarean who has made an outstanding contribution to the state, community, or society. The State Chamber’s highest honor is named in memory of the Honorable Josiah Marvel, who reorganized and was the first president of the State Chamber in 1913-1914. The award was originally presented to Marvel upon his retirement and has been imprinted with the name of each recipient. The identity of the winner is not announced until the award is presented at the Annual Dinner.

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DELAWARE BUSINESS | Ma rch/ Apri l 2016

Mr. Biondi was the preeminent dealmaker and public policy attorney of his generation. At a time when Delaware’s economic future was in dire straits, Mr. Biondi was instrumental in putting together and passing the legislation to create Delaware’s Financial Center Development Act of 1981. Legislation that ultimately created over 30,000 jobs and put Delaware on a path of prosperity for over two decades. Well versed in the “Delaware Way,” Mr. Biondi’s hallmark was his ability to reach across the aisle and collaborate. Respected and trusted by Governors, Legislators, and elected officials on both sides of the aisle, Mr. Biondi has served in many capacities to assist in the formulation, drafting and implementation of the most important State initiatives of the last several decades.

A successful attorney and dedicated family man, Mr. Biondi has been the recipient of numerous prestigious honors throughout his lifetime. His list of accomplishments and achievements is extensive. He has had a major impact on the community through his charitable work and has set the example for his peers. O. Francis Biondi, Esq. was admitted to the Delaware bar in 1958 and has served as president of the Delaware State Bar Association and Delaware Bar Foundation. He has served as chairman of the Crime Reduction Task Force, vice chairman of the Delaware Agency to Reduce Crime, co-chairman of the Commission on Delaware Courts 2000, and a former Wilmington City Solicitor. Mr. Biondi was a Senior Partner of Morris, Nichols, Arsht & Tunnell LLP prior to his retirement in 2001.

Member

news&Notes Steve Godowsky Aims for an A+ Q&A WITH THE NEW SECRETARY OF EDUCATION BY RANA FAYEZ Important issues facing education in Delaware today such as school accountability, state standardized testing and the growing popularity of charter schools will be at the forefront of new Secretary of Education Steven Godowsky’s agenda. Godowsky has spent more than 40 years as a Delaware educator and most recently worked at the University of Delaware as a program associate for Delaware Academy of School Leadership. A Delaware public school graduate, Godowsky’s career has been with the Delaware school system, working as a special education instructor, assistant principal, principal, assistant superintendent and superintendent of the New Castle County VocationalTechnical School District. Secretary Godowsky shared his thoughts in regards to the future of Delaware education and the role he will serve in it:

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How is the role so far? I’m very pleased by the positive reception received to date. It’s very demanding work, but exciting with great opportunities: innovations, new programs, successes, and challenges. I’ve had the opportunity to visit a number of key stakeholders and schools, recently Frear Elementary in the Caesar Rodney School District, which provides a Chinese immersion program for students to learn in Chinese

and English. While there I also met with a focus group of parents to hear their firsthand accounts of their concerns with our school system. So many good things are happening around the state in school districts and charter schools.

significant efforts to evaluate assessment programs to ensure both sides of the argument are represented. We’re studying how to reduce the number of tests given to alleviate parent concerns regarding too much testing.

What should the education system expect from you?

What are you looking forward to with your new position?

The vision for Delaware has been established over the last few years by the governor and the previous administrations. My key responsibility is to support that vision, helping to bring initiatives to successful implementation and sustain them at a high quality level.

What are some hurdles you see that need to be overcome? There are a number of hurdles; one is to create a level of cooperation among districts and charters to do the most we can to benefit our students. Last month at the School Choice Expo involving traditional public school districts and charters, parents were given the opportunity to meet school officials and teachers, understand the differences between the schools, and make the best choices for their children. We also have issues regarding statewide assessments. I believe that state testing plays an important role. We’re making

I’ve enjoyed getting to know many of our program associates and staff at the department and gained an appreciation for the hard work they demonstrate on a daily basis. I’m looking forward to the Department of Education providing technical service, quality support, and leadership to the school districts on both the teacher and administrator level. I look forward to celebrating successes and working through challenges together.

What was your public school education experience? I graduated from PS duPont High School. I didn’t grow up here, but I moved here in my junior year of high school and I’ve lived here for a long time. This year represents my 45th in Delaware education. My career has been wonderful, and I’ve met some great people and dedicated educators along the way.

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Pathways in Applied Education BY DELAWARE PATHWAYS Across the country, employers and educators are grappling with the so-called “skills gap”—the disconnect between the needs and expectations of today’s employers and current skills of our nation’s workers. In Delaware, a group of public, private, and community leaders are working together to break down the skills gap by building a comprehensive system that connects K-12 public education, postsecondary education providers, and state and regional employment needs. The resulting collaboration—known as Delaware Pathways—is becoming the central tool for career planning in the First State. Partners throughout the state, including many in the business community, are working together to develop career pathways for high school students aligned with demanddriven occupations in industries like health sciences, engineering, IT, finance, manufacturing, and others. “These result in careers that pay above-average wage and offer significant opportunities for advancement,” says Gary Stockbridge, president of Delmarva Power and chair of the Delaware Workforce Development Board. “Students will already have a legup by earning credentials related to their field of study, setting them up for postsecondary education or employment opportunities after high school.”

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DELAWARE BUSINESS | Ma rch/ Apri l 2016

“This is a significant workforce development initiative for Delaware and needs to transform from initiative to how we do business in the future,” Stockbridge says. The student experience in a career pathway is multi-faceted, including a sequence of courses which provide academic and technical knowledge, early career experiences, opportunities to earn college credits, and the ability to receive an industry-recognized certification or license in the field. Career counseling and industry mentors give students a clear understanding of employment opportunities immediately following completion of the high school pathway, as well as the careers and salaries associated with receiving additional training or an advanced degree. This knowledge and experience will allow students to make an informed choice. “Let’s look at health care as an example,” says Luke Rhine of the Delaware Department of Education. “A student can acquire a certification and immediately enter employment

as a nursing assistant. They can then tackle more coursework to become a licensed practitioner or vocational nurse, or they can earn an associate or bachelor’s degree in nursing. Each step represents a jump in salary all while the student is acquiring work experience that will help further their skillset. By aligning opportunities for education and employment we will give students the information they need to better plan their career trajectory.” Some pathways also have a work-based learning component, providing students with realworld work experience with local employers on projects related to their subject. During the summer of 2015, Delaware students in the advanced manufacturing pathway were hosted by companies such as Agilent Technologies, FMC, and PPG. Students often learn best by doing— and Delaware Pathways is providing that opportunity for the workforce of tomorrow. To learn more, visit www. delawarepathways.org

Member

news&Notes NONPROFIT SPOTLIGHT:

Delaware Humane Association The lack of smell is not the only thing one would notice about the recently renovated Delaware Humane Association (DHA). Previously housed in what is now the facility’s spacious parking lot, the DHA, Delaware’s premier no-kill animal shelter has significantly increased their home from around 8,000 square feet to just over 13,000, and therefore enhanced their quality of service. Re-opened just over a year ago, the open floor plan and cathedral ceilings in the DHA provide a warm and welcoming environment, as the highly sophisticated fresh air system prevents the shelter from smelling like well, a shelter. “This is because the trend is to move away from the concept of shelters, and focus instead on animal care centers,” says executive director of the DHA Patrick Carroll, which is just what the DHA has done. The hallways leading to the much improved intake and isolation areas where the animals are housed upon admittance, as well as the newly renovated adoption center areas support this ideal. Photographs on the walls depict some of the success stories of the DHA. Each photograph illustrates an animal who has truly found their forever home, one of the ultimate goals of the DHA. Dogs, volunteers, and visitors alike are welcome to take a stroll on the “Riverfront Trail,” so named because of the view of the Christiana River from the path. This trail is yet another way the DHA’s efforts to revamp the facility are demonstrated and appreciated.

BY DANI ROTH

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The tagline of the DHA is to “make friends for life,” says Greg Munson, director of development and major gifts. He explains that of course the emphasis of the association is to find homes for the animals, but the DHA also provides other services such as low cost spays/neuters, vaccinations, and a pet food pantry for those who cannot afford pet food and may otherwise be likely to give up their pet. Munson says the DHA is better able to ensure this goal is achieved because the animals are now healthier and consequently can be moved to the adoption sites faster. He attributes this success to the revitalization of the building and the improvement of housing space for the animals. Animals are now housed in different villages throughout

the facility, separating the incoming cats and dogs that may need medical attention from the animals ready for adoption. While the DHA has improved their intake capabilities and facilitated 1,2001,300 adoptions in the past year alone, fundraising initiatives are always on the forefront of the minds of DHA staff. The majority of funding the DHA receives for renovations and upkeep currently comes from private donors, and from fundraising events the DHA hosts such as the Muttini Mixer in the spring and the Rubber Duck Race in the fall. “We are the sad Sarah McLachlan stories, but the difference is where the animals live and how they’re treated,” says Munson. “In our mind, this is just something we should be doing.”

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Considering the Cloud? Consider the Need for Speed BUSINESS SPOTLIGHT

Cloud technologies have transformed the playing field for businesses, providing employers with access to sophisticated tools that deliver added flexibility in how they work, where they work and which services they can make available to both employees and customers. Ranging from servers to storage, cloud-based services offer on-demand, scalable and remotely-accessible solutions that can often eliminate the need for onsite technical expertise and equipment. They can also make some small- and mid-size companies more agile and competitive against larger companies. Using their Internet connection, businesses can harness the power – and reap the rewards – of applications traditionally available only to large enterprises with big IT budgets. Simply having the cloud in their business isn’t enough, however – it’s how quickly and securely companies can access that cloud (and the applications within it) that will determine their success in the future. As organizations move to the cloud and embrace applications like high-definition video and web-based tools, their Internet connection becomes more and more important. That’s because there is suddenly much more

CONTENT CONTRIBUTED BY COMCAST.

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DELAWARE BUSINESS | Ma rch/ Apri l 2016

data that needs to move – and move quickly – over the connection. For businesses of all sizes, from small businesses to large enterprises, this need for speed is more the rule than the exception. Finding a communications partner that offers high-capacity connectivity with the necessary infrastructure to help support cloud, mobility and business continuity applications is an important process. Here are two things to consider when selecting a network service provider:

options to accommodate your current and future bandwidth demands. Reliability – The cloud provides the ability to remotely share information, services, software and other resources over a network. With all of this traffic moving back and forth every time a customer or employee accesses an application, the reliability of your network becomes even more vital. It is critically important to ensure your network service provider offers an infrastructure with the uptime and dependability your business needs. Comcast Business makes harnessing the power of the cloud both easy and accessible by offering scalable Internet and high-capacity Ethernet services that meet organizations’ current needs and can grow to meet future LEADERSHIP needs with speeds up to LEVEL 10 Gigabits-per-second alongside the benefits of SPONSOR WiFi solutions. Comcast continues to invest in the necessary 179th 179th 179th Scalability – As cloud infrastructure to deliver Business ANNUAL ANNUAL ANNUAL applications, users and sites TV and DINNER DINNER Internet, Ethernet,DINNER continue to grow, having the advanced voice services for costflexibility to adjust your bandwidth effective, simplified communicaquickly and in whatever increment tions management backed by 24/7 makes the most sense for your technical support and local teams business is key. The cloud allows that deliver personalized attention you to easily manage capacity by adding every time. For more information on how bandwidth, so make sure you choose a Comcast Business can work for your comprovider that offers a variety of different pany, go to www.business.comcast.com

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Member

news&Notes

A Place To Call Home In 2014 the Chicago Sky and University of Delaware made history by collaborating to bring the first-ever WNBA preseason game to the state of Delaware. Three years later we are proud to announce that we are bringing a WNBA Preseason game to the University of Delaware for the third consecutive year. The game, played at the alma mater of WNBA MVP Elena Delle Donne, is presented by the Delaware Lottery and will feature the Sky against the New York Liberty on Sunday,

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May 1. Tip-off is set for 2 p.m. ET. “To be able to travel to another state and still enjoy the advantage of playing in front of a hometown crowd has been exciting for the players and provides an electric environment early in the season,” said Sky Head Coach and General Manager Pokey Chatman. The support from the Delle Donne family, Delaware businesses and fans has been greater than we could have ever imagined. When the idea first surfaced to host a preseason game at

the University of Delaware in 2013 it seemed a little far-fetched because there had never been a professional women’s basketball event hosted in the state. Shortly after meeting with the Delle Donne family and the University of Delaware’s Athletic Department staff to discuss the idea, we learned how meaningful this game would be not only for Elena but also for the entire state. Delle Donne, 26, is a native of Wilmington, Del., and was a standout collegiate player at the University of

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Delaware. She was drafted by the Chicago Sky with the second pick of the 2013 WNBA Draft. Since then she has won WNBA Rookie of The Year, made three All-Star games and was named the 2015 WNBA MVP. Elena’s older sister Lizzie is her rock and inspiration. Lizzie was born deaf and blind, with cerebral palsy and autism. The only real interaction or communication Elena, or anyone, has with her is in person, with hand over hand sign language. She hugs. She smiles. She kisses. All of which Lizzie did when she got the chance to be present when Elena played once again in Delaware in 2014. Due to her condition, Lizzie is unable to travel outside of the state to be at her sister’s games; more the reason it was important to Elena to be able to bring the game to her and the many faithful fans in Delaware that have shown her tremendous support. Following last season’s game at the Bob, Delle Donne took to the microphone to express her personal gratitude for Delaware’s continued support. “I just want to say thank you so much for continuing to come out and support me,” said Delle Donne. “Being three years removed from college and to have this kind of turn out at a preseason game is absolutely unreal. I brag to my teammates all the time about Delaware

and why it’s so special and you show them every single time we come here. So thank you, you are the best. I love you and I’ll be back.” That’s a promise. The Sky is proud of the longstanding relationship we’ve developed with our fans in Delaware. After drafting Delle Donne with the second overall pick in the 2013 WNBA Draft, there was evidence of early support from the Delaware population.

Spikes in retail sales, social media followership and web traffic can be traced back to “The Blue Hen State.” You’ve given us more than we could ask for: one of the world’s most talented female athletes, endless support, and most importantly a home away from home. Thank you to all of the companies who have made this possible over the years including: UD, DuPont, Highmark Blue Cross Blue Shield Delaware, Delaware Sports Commission, Christiana Care Health System, Delaware Express, Courtyard Newark at the University of Delaware, Grotto Pizza, Blood Bank of Delmarva, Greater Wilmington Convention & Visitors Bureau, Comcast Xfinity, Delaware Lottery, Delaware River and Bay Authority and National 5 and 10 to bring this WNBA game to the many loyal fans in Delaware who have shown unwavering support for their hometown hero, Delle Donne, and the Chicago Sky. Tickets will go on sale Tuesday, March 1, 2016 for the Chicago Sky vs. New York Liberty preseason game and fans can purchase tickets by phone, online or in person: Online: Ticketmaster.com Phone: 1-800-745-3000 In Person: Delaware Ticket Office located at the Bob Carpenter Center, 631 South College Ave, Newark, DE 19716 between 8:30-4:30 Monday-Friday.

“To be able to travel to another state and still enjoy the advantage of playing in front of a hometown crowd has been exciting for the players and provides an electric environment early in the season,” said Sky Head Coach and General Manager Pokey Chatman.

DELAWARE BUSINESS | Ma rch/ Apri l 2016

EXPORT ROAD SHOW • Learn about resources available to assist your company to do business in foreign markets • Meet with exporting experts to discuss your organization’s needs and determine growth opportunities • Find the best strategies for entering or expanding into global markets Want the road show to stop at your location? Contact the Delaware Manufacturing Extension Partnership at 302.283.3131. EXPORT ROAD SHOW RESOURCE PARTNERS

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

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the table with a variety of skills Marc h / Ap r i l 2016 | DELAWARE BUSINESS

DELAWARE BUSINESS | Ma rch/ Apri l 2016

From Left: Toni Battaglia, Victor Battaglia of Biggs & Battaglia, Frank Biondi and Anita Biondi 1

STATE CHAMBER SCENE 2

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2016 Josiah Marvel Cup Honoree: O. Francis Biondi, Esq.

*Photographs by Dick Dubroff/FinalFocus

From left: DSCC president Rich Heffron, Anita Biondi, Frank Biondi and Morris Nichols Arsht & Tunnell’s Mike Houghton

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

1. From left: Kevin Fasic of Cooch & Taylor, Melinda McGuigan of EDiS Company, Bob Bird of Home Instead Senior Care and Grant Dick of Cooch & Taylor 2. Bonnie Metz of Verizon Delaware and Mark Brainard of Delaware Technical Community College 1

3. Gary Stockbridge of Delmarva Power, Pat Harker of the Federal Reserve Bank of Philadelphia and Glenn Moore of Delmarva Power

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5. Bill Topkis and Mike Uffner of AutoTeam Delaware *Photographs by Dick Dubroff/FinalFocus

179th ANN UAL DIN NER

*Photo by Thomas N. Nutter

179th Annual Dinner Keynote Speaker: Dr. David J. Bailey, MD, MBA President & CEO The Nemours Foundation

DELAWARE BUSINESS | Ma rch/ Apri l 2016

Chamber Leadership Speaker: Joe Hickey Executive Director St. Patrick’s Center

DELAWARE’S COASTAL ZONE ACT: A CALL FOR MODERNIZATION 18

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Delaware’s Coastal Zone Act: Landmark Legislation BY REBECCA BYRD, THE BYRD GROUP LLC

SIGNED ON JUNE 28, 1971, the Coastal Zone Act was a landmark piece of legislation. The Act created a zone, running the length of Delaware’s coastline and including lands around the Chesapeake and Delaware Canal and Rehoboth Bay, in which no heavy industry was allowed unless it was in operation on June 28, 1971. It also created an elaborate permitting process for new industry allowed in the Coastal Zone. At the time, many companies were interested in Delaware’s coastline for industry. Shell Oil had existing properties on the coast and was acquiring land to build another facility near Bombay Hook. The U.S. Department of Commerce had spent years and significant resources planning to build artificial islands in the Delaware Bay for a large port operation including rail lines that would connect the islands to Delaware. There were also plans from Delmarva Power to build a nuclear plant adjacent to the C&D Canal. Governor Russell Peterson, who was already interested in environmental issues, was approached by a group of Delawareans who were opposed to the new development proposals. The first step Gov. Peterson took was to set up a task force to study the issue and declare a moratorium on any development until the task force was completed. The task force’s recommendations were for a coastal zone and some limitations on the industry in the zone, but for Peterson the recommendations did not go far enough. The Governor’s office proposed a more restrictive bill which is basically the law today. However, Peterson lost an argument about the goal of the legislation. Peterson, and his environmental allies, thought the current industry in the coastal zone should whither and die. The legislature however, disagreed, and the Act allowed current industry to remain as it was in 1971, but prohibit expansion. What the past 40+ years has demonstrated is that not allowing expansion and restricting the use of property has caused most of the industry from 1971 to wither and die. As we know, plant after plant has closed with the Evraz site and Chemours’ Edgemoor plant being the latest victims. Over the years numerous amendments have been proposed to reduce the impact of the Coastal Zone. The only attempt that was successful was the change to allow a two-year grandfathering provision for a steel manufacturing plant. That change was to accommodate the closing and sale of the Claymont Steel plant in the late 1980s. There have also been numerous court cases challenging the Coastal Zone; none have been successful in limiting its scope or the State’s power in enforcing the Act. At the time Delaware was a pioneer in environmental regulation, but now, most of that regulation is at the Federal level. The Delaware Coastal Zone act was passed before the Federal Clean Air and Water Acts, the Federal Coastal Zone Management Act, and numerous other environmental protection laws. Given all the ensuing Federal regulation and the impact on Delaware business and industry it is time to modernize the Coastal Zone Act. n DELAWARE BUSINESS | Ma rch/ Apri l 2016

Delaware’s Coastal Zone Act: Then and Now BY WILLIAM SMITH, P.G. ENVIRONMENTAL ALLIANCE, INC.

THE COASTAL ZONE ACT (CZA), initially promulgated as an executive order in December of 1970 to halt the construction of a second oil refinery by Shell Oil, came into existence in 1971 with a strong push by then Governor Russell Peterson to protect one of Delaware’s most precious resources, namely the coastal areas. Even to this day, the Act is seen as the landmark legislative piece of Governor Peterson’s term, and helped to shepherd the environmental movement in Delaware and in the United States. To better understand the historical precedent of this comprehensive environmental regulation, we should reflect on the environmental movement that now we take for granted. Prior to the 1970’s, The Federal Water Pollution Control Act of 1948 was the first major U.S. law to address water pollution. In 1972, the law was amended to address the growing public concern regarding water pollution, and became commonly known as the Clean Water Act (CWA). The CZA (June 1971) predated this significant change in the regulatory landscape. Additionally during this time period, the Department of Natural Resources and Environmental Control was created. On December 2, 1971, the Federal Government decided to consolidate several separate governmental agencies into what became The Environmental Protection Agency (known as the EPA). All of these governmental efforts heralded the start of the regulatory intervention to protect our environment. Additionally, several other critical federal legislative actions were passed, such as: the 1970 amendments to the Clean Air Act; the Resource Recovery Act (1970); and the totally revised water pollution legislation (1972). In 1977, the Safe Drinking Water Act amendments gave EPA authority to require community water systems to monitor unregulated contaminants in public water supply systems. In December of 1980, the 20

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) was created and adopted the word “Superfund,” which had been applied to oil spill cleanup legislation. As demonstrated by the CZA, Delaware is and will continue to be a leader in the protection of human health and the environment. This is evident in the CZA as it is clearly articulated in the first section: “It is hereby determined that the coastal areas of Delaware are the most critical areas for the future use of the State in terms of the quality of life in the State. It is, therefore, the declared public policy of the State to control the location, extent and type of industrial development in Delaware’s coastal areas. In so doing, the State can better protect the natural environment of its bay and coastal areas and safeguard their use primarily for recreation and tourism.” Now in light of the potential effects of sea level rise in our coastal zone due to climate change, the ramifications and insightfulness of the CZA in nudging heavy industry out of the potentially impacted zoned cannot be underestimated. The CZA is a proud piece of Delaware legislation and its history of environmental protection, but like most regulations, the Act must be regularly evaluated to remain current with the balance of society’s needs and environmental protection. Always a difficult balance. n

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

DELAWARE’S COASTAL ZONE ACT: LOOKING FORWARD BY REBECCA BYRD, THE BYRD GROUP LLC

WHILE THE COASTAL ZONE ACT (CZA) had, in 1971, laudable goals that are still relevant today, it has also had the affect of limiting industry in areas of the state, which have historically been hubs of industry. For example, in northern New Castle County, many properties from the PA-DE state line to the Chesapeake and Delaware Canal have been industrial sites for many years. It is not in anyone’s best interest to jeopardize the areas of Delaware’s coastline that are pristine and an important tourism driver in our state. However, Delawareans must also realize that manufacturing and industry have been an important part of Delaware’s economy and that must continue, even it means loosening some of the restrictions in the CZA. Delaware cannot continue to lose jobs and hinder economic development because of the CZA. There are three recent examples of how the CZA is impairing Delaware’s economic development. Chemours has announced they will be closing the Edgemoor facility. As they look for a buyer for the site, the CZA becomes a challenge because it cannot be used for any other heavy industrial use than what Chemours was using it for. This limitation greatly impacts them finding a buyer for the plant, even though this has been an industrial site for many years. The former Evraz plant was bought and is being redeveloped by Commercial Development Corp. As they look at plans for potential uses, potential buyers, and potential lessees, the CZA is a hurdle to overcome. Due to CZA restrictions, the plant cannot be used for heavy industry, despite it being a steel mill for well over a hundred years. Commercial Development Corp. is cleaning up the site, and hopefully it will become a center for business development, but the CZA is one more barrier to that goal.

Sunoco is ready to expand its facility at the very top of the state. They can expand into Pennsylvania (which has no CZA or similar restrictions) or into Delaware. They would prefer to expand into Delaware, but that expansion may be impossible because of the CZA. These three are just the most recent examples; there are several other abandoned industrial sites that are languishing because of the CZA restrictions. Without the ability to expand or retool these sites, industries are withering and dying. That is why the CZA needs to be reconsidered. It must be modernized so that existing companies can make the best use of their property and have a property that has the potential to be sold if needed. In addition to hurting existing business, new businesses are not interested in coming to Delaware because of the CZA. Delaware cannot compete with nearby states like Pennsylvania and New Jersey who do not have such severe CZA restrictions. For these reasons, it is imperative that policymakers and interested stakeholders take a careful look at how we can modernize the CZA. n

Without the ability to expand or retool these sites, industries are withering and dying. That is why the CZA needs to be reconsidered. DELAWARE BUSINESS | Ma rch/ Apri l 2016

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Health Care & Insurance

Bayhealth Expansion in Southern Delaware BY PAM GEORGE Mike Ashton, Bayhealth VP of Operations and Administrator at Bayhealth Milford Memorial Hospital addressing his staff

WHEN BRYAN SHUPE was growing up in Milford in the late 1980s and early 1990s, the area was dominated by farmland, and there wasn’t much to do. No longer. “The area has grown not only with housing, but commercial growth has also been prevalent over the last 10 years, and we have a growing downtown, as well,” said Shupe, who became mayor of Milford in 2014. The numbers bear him out. Between 2000 and 2010, the population rose by nearly 30 percent, according to U.S. Census data. In large part, credit retirees who’re drawn to new construction, lower taxes, and close proximity to the beach. In 10 years, the number of Milford residents 65 and older jumped just over 30 percent. “As the area continues to grow, we DELAWARE BUSINESS | Ma rch/ Apri l 2016

need more facilities and a higher quality of health care,” Shupe says. Milford Memorial Hospital has served the area well, he says, but it needs to expand. That’s been a challenge considering the downtown location is surrounded by residential development. “Replacing it is difficult here, and we need other services around it,” Shupe says. The solution resides on a 165-acre site off Route 1 at Wilkins and Cedar Creek roads. Pending necessary approvals, Bayhealth Medical Center— created in 1997 by the merger of Milford Memorial and Kent General hospitals—late this spring will break ground on a new $277 million health campus, which is expected to open in 2019. The new campus will not only help Bayhealth compete in a challenging 23

Health Care & Insurance industry, but it also has the potential to bring economic growth to Sussex County and Kent County, particularly if stakeholders can find a new use for the current hospital.

Filling a Need The new campus is a long time in coming. When the hospitals merged in the late 1990s, Bayhealth set a goal to replace the Milford facility to better serve the area population. Age is one factor. While the hospital traces its roots back to 1912, when the Delaware General Assembly authorized the start of the 12-bed Milford Emergency Hospital, the current campus stems from construction of the 100-bed Milford Memorial Hospital, which opened in 1938. The original section is still occupied. A four-story expansion followed in 1954, and the hospital added an outpatient services facility, new surgical department and 32,000-squarefoot inpatient rehabilitation center and physical therapy in 1991 and 1992. The 12,000-square-foot cancer center opened in 2002, and in 2004, emergency and trauma service was enlarged and diagnostic imaging was enhanced. The hospital in part was expanding to meet the area’s needs. Situated on the Mispillion River in Milford—once home to up to seven shipbuilding companies at one time—is right on the border between Kent and Sussex counties, both of which have seen an influx of residents between 2000 and 2010. Kent County grew 28 percent, and Sussex County grew 26 percent, according to U.S. Census data. Sussex County, a hot destination for

Need a doctor?

Mike Ashton, Bayhealth VP of Operations and Administrator at Bayhealth Milford Memorial Hospital with CannonDesign team member retirees, experienced a 42 percent growth in residents 65-plus. The influx shows no sign of stopping, but Milford Memorial can’t expand further without severely impacting the existing residences nearby. Bayhealth carefully considered its options. “The vision of the organization is to best service the patient population and the needs of the community that we serve around us, both locally and regionally,” says Michael Ashton, vice president of operations and administrator of Milford Memorial Hospital. “And one of the areas that continues to grow, of course, is the southern part of the state. As we look at that growth factor, and also maintain the services that we have now, we need to position Bayhealth in a very strategic and positive way to make sure we service the community as it grows, and assure the infrastructure is there from a health care standpoint. ... It’s important for us to reach both Kent and Sussex counties.”

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To succeed, Bayhealth is collaborating with the design firm, CannonDesign, and the construction management company, WhitingTurner Contracting Company, right from the start in an approach known as integrated process planning, or lean process management, which is focused on reducing waste and redundancies and looking at value from the customers perspective. “Everything is planned heavily on the front side to alleviate the backend changes of construction later on,” Ashton explains. CannonDesign, which has locations in Chicago and New York—as well as Abu Dhabi and Mumbai, had expertise in such an approach. “We’re not designing with Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Health Care & Insurance the architect and then sending the plans to the construction management team. We’re putting them in the same building, in the same user-group meetings, in the same design sessions. Everybody is there to hear what’s going to work and what’s not going to work and provide that real time input so we can streamline the design and development process of this campus.” The accessible site for the new campus covers 165 acres off Route 1 in the Sussex County portion of Milford. The hospital initially will occupy approximately 50 acres. (The current hospital is on 22 acres.) While the design is still under consideration, the team has determined that there will be six operating rooms and an interventional room. The Emergency Department will have about 30 treatment rooms, and it will adjoin a clinical decision unit with 12 treatment areas, where doctors can watch patients for extended periods if need be in order to clinically determine if the patient can be sent home, or admitted. At present, the proposed licensed bed count is 128 in private rooms, which improves the patient experience by reducing the stress that comes from sharing a room with a stranger and, ideally, helps prevent infection risks.

on the new campus anticipates that cost-cutting movement and focus on prevention will continue. “What makes it more than a hospital is the vast array of outpatient services such as primary care and specialty physicians as well as diagnostic services – all located together for a better patient experience,” says Terry Murphy, president and CEO of Bayhealth. The ambulatory care center will be about 60,000 square feet. Bayhealth is also partnering with other health care systems, such as Nemours/Alfred I. duPont Hospital for Children. “Our relationship with Bayhealth is one of professional collaboration in pursuit of a larger goal— to give Delawareans access to the best possible care, in their communities, no matter their age.” Brent R. King, MD, enterprise vice president for Nemours and chief medical officer of the Nemours/Alfred I. duPont Hospital for Children. While the details are still under discussion, the goal is to improve pediatric specialty care in Kent and Sussex counties by offering services Nemours is not currently providing there. Nemours’ presence on the campus would be in addition to its existing Milford primary care practice.

Facing the Future Reflecting the Trends The Clarke Avenue site is licensed for 168 beds, but operates with about 127. That’s because the move in insured health care is to reduce the amount of nights the patient stays in the hospital, and the lower bed count

In the town meetings that Bayhealth has held to introduce the plans to the public, many attendees expressed excitement, Ashton says. “There’s a lot of interest in what it is and how fast can we get it here.” But there have also been concerns about the current Clarke Avenue site. “It’s Bayhealth’s

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Health Care & Insurance goal and the city of Milford’s goal to make sure that facility remains an asset in the community.” Bayhealth is working with Dallas-based Trammell Crow Company, which has a Wilmington office, to find redevelopment opportunities. “As of now, all options are on the table,” Mayor Shupe says. “One of my personal beliefs for a great fit there would be an allied health campus. The city of Milford really would benefit from higher education, and I can see where there would be a benefit to the growing health care industry here to growing the next generation of physicians and also the supporting roles in allied health.” Certainly the new campus off Route 1 should help recruitment at Bayhealth, Ashton says. Clinicians, frontline staff and end-users are having a say in the design. “It’s not the administrators or the managers sitting in a room, designing the clinical space. It’s the front-line users saying: ‘No, this needs to be positioned here. This is how this works. This is how this doesn’t. Let’s think about the patient experience all the way through.’” An advantage might be a boon in a landscape that’s become competitive when it comes to health care recruitment. Recruitment in the southern part of the state is often challenging in certain specialties, given the overall physician shortage and the still rural nature of southern Delaware. Many

Left to right: Mike Ashton of Bayhealth with Jerry Peters, Bayhealth Project Manager and CannonDesign Engineer

young doctors look at cultural and recreational opportunities, the cost of housing, job opportunities for a spouse and school options. Nevertheless, hospitals in Delaware have a collegial relationship with each other, Ashton says. “And in the end, our goals, again, always go back to how do we best serve the patients within the region that we’ve been given the privilege to serve.” n

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Health Care & Insurance

What’s Ahead for Healthcare Insurance? BY DON FULTON

MOST BUSINESSES CONSIDER dealing with health insurance an arduous process for a variety of reasons and unfortunately, that will most likely continue throughout the rest of this year. One of the most compelling issues is the cost of providing a medical insurance plan for their employees. As a result, many businesses are considering moving away from the traditional fully insured model to alternative ways to fund their plans while maintaining Affordable Care Act (ACA) compliance. Some of these alternatives include selffunding, level funding, group medical captives and consortiums or large purchasing groups. Each of these have their own set of liability, cash flow and regulator complexity, but could be a solution to significant premium increases on an annual basis. Additionally, these plans could potentially eliminate the need to “shop the market” every year, put some plan design control back into the hands of the employer and perhaps avoid some of the ACA directives. To continue on that last note, 2016 will bring some changes to the ACA, some of which are positive others are not. Fortunately, the implementation of the 40% Excise Tax on high cost group health coverage also known as the “Cadillac Tax” has been delayed until

As a result, many businesses are moving away from the traditionally insured model to alternative ways to fund their plans.

DELAWARE BUSINESS | Ma rch/ Apri l 2016

2020. In addition, a moratorium was declared on the collection of the 2.3% excise tax on the sale of certain medical devices for 2 years (2016 &2017). Although not significant, this should help in some way to control medical inflation in those 2 years. On the less positive side, last year the ACA imposed a penalty on Applicable Large Employers (ALEs) which mandated they offer minimum essential coverage to full time employees and their dependents. This provision is often referred to as the Employer Shared Responsibility rules. In 2015, this impacted ALEs with 100 or more full-time employees. At the beginning of this year, it also began applying to medium size ALEs which are defined as companies with 50 to 99 full-time employees. Finally, with all of the above in mind, it is likely 2016 will also see a continuation of many employers, particularly small employers, who have made the decision to eliminate offering medical insurance packages to their employees and encouraging them to seek coverage individually or on the exchanges. n 27

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requires maintenance, care, and informed decisions. Through a multitude of manufacturing initiatives in the healthcare industry, doctors are better equipped to make confident choices in terms of healthcare and treatment for diseases that ail our bodies. Global companies like Agilent Technologies and Siemens Healthcare, leading examples of modern day, clean manufacturing, have a big presence right here in our state of Delaware. Both companies are key players in the manufacturing of technological systems that are transitioned into the healthcare industry. Both are also very involved in the Governor’s Pathways to Prosperity initiative helping prepare high school students for careers with a bright future in advanced manufacturing. Agilent Technologies manufactures products that provide doctors a head start in the fight against cancer and other diseases. Their solutions help pathology laboratories deliver fast, accurate information to the doctors, hospitals and medical centers they serve leading to more accurate diagnoses so patients can receive the most effective therapies. Agilent manufactures products that go beyond the healthcare industry. However, it’s their chromatograph and mass spectrometer technology that is pushing science forward in healthcare. The chromatograph is used primarily by medical practitioners as a screening tool and the mass spectrometer provides physicians with detailed and precise information about the sample being tested. Having these tools available in the healthcare industry is a big deal – it allows business practitioners to analyze our drinking water, the foods we eat, and even air pollution; all of which can negatively or positively impact our health. Liza Bartle, Agilent Technologies said, “We want people to know there’s opportunity at Agilent Technologies…when people think ‘manufacturing’ they don’t think ‘high-tech’, but it actually can be very clean and pure, and requires skills.” Siemens Healthcare is one of the world’s largest suppliers of technology to the healthcare industry, and a leader in medical imaging, laboratory diagnostics and clinical IT. It has gathered some of the brightest minds in healthcare in the state to develop innovations that advance human health on a global scale. The company’s facility in Newark, focuses specifically on laboratory diagnostics in the areas of manufacturing, instrument research and development, assay development, portfolio and product management, marketing, customer service, product education and quality management. It is home to more than 1,400 employees and is one of the largest healthcare diagnostics employers in Delaware. As Delaware, and the nation, continue to face an ever-aging population, the products developed by companies like Agilent Technologies and Siemens Healthcare will play a key role in how healthcare is delivered. The next generation of employees in these types of companies are being trained here in Delaware, under the Pathways to Prosperity program. Delaware is uniquely positioned to take advantage of the situation, resulting in jobs and economic growth throughout the state. n Marc h / Ap r i l 2016 | DELAWARE BUSINESS

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Tax and Financial Services

BDO Partners pictured (left to right): Tom Shopa, Cameron McDonald, James Doyle

NEW LEADERSHIP AT BDO BY DANTE LAPENTA

TOM SHOPA IS HANGING UP his calculator, T accounts, and spreadsheets. The longtime BDO leader has entrusted two mainstays in the company’s Wilmington office, Jim Doyle and Cameron McDonald, to lead the 40-person accounting office. According to Shopa, the torch was passed years ago. “The guys were nice enough to let me hang around,” he jokes. This leadership transition was no snap decision. It started a half decade ago when then McBride Shopa & Company decided to merge with BDO, which boasts a comprehensive array of assurance, tax, and business advisory services. As Shopa explains, the decision was made with the firm’s two greatest resources in mind. “In an accounting firm, your staff and clients are your greatest assets. Going forward, I felt that, to protect our clients and to really keep the relationships with our staff members, I wanted to combine with a firm that would honor that.” Shopa worked with BDO before the merger and, after cementing deep client relationships over the course of McBride Shopa’s 32 years in businesses, he wanted a firm that would understand their value. “The legacy that I leave is the relationships,” says Shopa. “I have 30

long-term, deep relationships that I care about that are now being served by Jim and Cameron.” Doyle and McDonald have a combined 20 years of working with Shopa. The ‘new’ leaders of BDO’s Wilmington office greatly admire his thoughtfulness and genuine care for his clients. “I wouldn’t have followed someone for so long if he didn’t have core values that I admired,” says McDonald, tax office managing partner. “More than anything, it’s his passion for excellent client service. He’s a devoted client advocate.” With Doyle and McDonald running the show, Shopa plans to dedicate more time working with non-profits and political venues. The two managing partners recently moved BDO to a beautifully renovated office off of Lancaster Pike inside the Chestnut Run campus. The bright space provides a collaborative and energetic environment for BDO to recruit talent in the competitive world of public accounting. But Doyle and McDonald aren’t only recruiting talented professionals, they are committed to developing these aspiring accountants. “You hire people to replace you. You help them develop and achieve their goals so they can move up to your role and you can move on to the next Marc h / Ap r i l 2016 | DELAWARE BUSINESS

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role,” explains Doyle, assurance office managing partner. “When you think that way, you help your staff become better professionals and better people.” And the opportunities aren’t limited to Wilmington. BDO is giving its staff opportunities in other parts of the country and other countries. “Our secondment program helps staff with a career drive in a specific area,” explains Doyle. “Members of our Wilmington staff have spent time in DC, Las Vegas, Boston, and London.” With McDonald and Doyle at the helm, BDO is strategically placed between colossal accounting firms and smaller, regional outfits. BDO uses a partner-led team model, which allows the international company to be quick on its feet, making prompt, wise decisions for its clients. Whether its tax or assurance or any specialty area, BDO prides itself on constant communication with clients. And it’s not just the staff who is conversing, it’s the partners as well – a big advantage compared to accounting’s ‘big four.’ “The larger firms do not have the partner representation on a regular basis,” explains Shopa. “Jim and Cameron are so much closer with their clients.” So what can you expect from BDO in the future? “You’ll see continued investment in the Wilmington office. There has been a lot of momentum here,” says McDonald. “We are very involved in local organizations, so you’ll see greater awareness of BDO in the local market.” n

DELAWARE BUSINESS | Ma rch/ Apri l 2016

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Construction and Real Estate

DEEP ROOTS IN DELAWARE Q&A with DCA’s John Casey

DELAWARE BUSINESS SAT DOWN for a one-on-one with the Executive Vice President of the Delaware Contractors Association (DCA), John Casey. John has deep roots in Delaware. He grew up in the City’s 9th Ward and attended Christ our King Elementary School, Salesianum and Mt. St. Mary’s University in Emmitsburg, Maryland. James DeChene chatted with John about his many years in the public sector.

Where did this journey begin? My first job in the public sector was in 1973. I was hired as the finance director of The Port of Wilmington. Mayor Tom Maloney and Wilmington City Councilman Bill McLaughlin encouraged me to apply for the job. In 1975, I moved on to be the budgetary consultant for the Wilmington City Council and then the assistant finance director for the City under Mayor Tom Maloney. Not long after I was appointed to the position of City Treasurer to fill the unexpired term of Maurice Williams upon his death. I ran for the position and was elected City Treasurer in 1980 and 1984. I became commerce director for the City in 1985 under Mayor Dan Frawley and that began my career in public economic development. In 1989, Governor Castle gave me the opportunity to serve in his cabinet as the director of the Delaware Development Office (now known as DEDO).

the train station renovation and the park by the train station were completed. The area became much safer and this lead to other surrounding areas being cleaned up and redeveloped. It was a good concept. Talking about the city in general, Wilmington experienced a major flight to suburbia in the 60’s which fueled the growth of New Castle County. Housing in the city suffered for quite some time, until Mayor Tom Maloney started the first Urban Homestead program in the country. Dan Frawley, a young DuPont attorney, became the first Urban Homesteader in America. In the mid- to late 70’s the housing market in the city started to turn around. It continued with the development of midtown Brandywine around the Hercules Building and then the Trinity Vicinity and the Quaker Hill areas. It kind of came to a halt in the mid-90’s.

Are there other examples of city/state cooperation during this era? Definitely, and one in particular is important to mention. The ability of the City to annex property was important to the building of Frawley Stadium – a collaboration of the Frawley and Castle Administrations. The stadium was built on county land that was only accessible through city streets. The City used its annexation power and the deal was struck with the County and the State. I have always believed that you put public investment where you know private investment will not go.

That is an interesting political move… Yes, I was a Democrat and Governor Castle, as you know, was a Republican. It was an era when the two parties worked together to get things done. It really started under the McLaughlin and du Pont Administrations and then carried over to Wilmington Mayor Dan Frawley and Governor Mike Castle.

How have you seen Wilmington evolve over the years? The bipartisan cooperation between the city and state governments was really a model. Two glowing examples of that were the formation of the Brandywine Gateway Corporation and the Christina Gateway Corporation. The theory behind the economic development plan of the city at that time was to link development between the two rivers – the Brandywine on the north and the Christina on the south. That was the catalyst to get things started. The Brandywine Gateway Corporation was the primary arm in finalizing the Hercules project. The Hercules building and the Brandywine Gateway Garage were the cornerstones of the project. The Christina Gateway Corporation was a great model – made up of city and state officials. This is what started all the development on the Riverfront. Property was purchased from 4th Street to the river and from Walnut Street to King Street. The area was seedy and in decay. As a result, two office towers, DELAWARE BUSINESS | Ma rch/ Apri l 2016

You joined DCA in March of 1995 – tell me a little about the organization... DCA is made up of general contractors, construction managers and subcontractors involved in commercial, industrial and infrastructure construction. Our members are both union and non-union as well as companies who supply goods and services to the construction industry.

How is the state doing in terms of economic development? There has been tremendous change in the overall economic condition and employment in the state. It will continue to change. As a state, we have relied on chemicals, automobiles, financial services and agriculture to fuel our economy. Agriculture has remained strong, the automobile industry is gone and the chemical industry has changed dramatically. The financial services sector is still doing well. I think the biggest single factor that has affected the state is the chemical industry and the change that began to occur in Delaware about 20 years ago. When I was growing up, many of my friends had family members who worked for DuPont – or in the chemical industry with Hercules or Atlas Powder (predecessor to ICI). Northern Delaware was always a transient community 35

Construction and Real Estate given the chemical industry. With the advent of the banks in the 80’s it became even more of a transient community. With that came an influx of talent. Delaware flourished economically until things started to change in Delaware at the start of this century. Then the economy slowed down across the country in 2007. Candidly, we bounced back some in Delaware and there are a lot of bright spots, but there are still some areas where we have not recovered. We have created jobs but they are not the same quality jobs we had in the past. From the construction industry perspective, many Delaware contractors have always worked out of state. We have always had out-of-state contractors come in, but in the last decade, the out-of-state competition is greater than it has ever been. Delaware contractors are not only doing more work out of state, but farther away. It is just competition. The big infrastructure jobs attract more bidders. In the last decade, the biggest change has been a paradigm shift in construction in terms of the traditional private sector users of construction. In the past, the chemical and auto industries were tremendous users of construction. The financial services sector has fueled the construction industry some with projects like the JP Morgan Chase expansion in the former AstraZeneca building.

Do you see healthcare as the next big driver of construction? It has been. The biggest users of construction in the last decade have been healthcare, higher education and the public sector (federal and state government). Healthcare was certainly notable with the expansions at Christiana Care, Alfred I. duPont Hospital for Children, Bayhealth, Nanticoke and Beebe, along with the significant growth at the University of Delaware.

What do you see for the foreseeable future? The hope is that the Governor and the General Assembly will do everything in their power to encourage the affected professional people from DuPont to stay in Delaware. I would hope leadership in the state and local governments will be creative to encourage retention of the laboratory and research space at DuPont facilities. The brain drain is a concern. R&D credits, along with other significant incentives, could be part of the proposal to encourage retention of that valuable building space at the two world famous research sites – the Experimental Station and Stine Haskell.

Is redefining the Coastal Zone Act a reasonable opportunity for growth? That is one of the real assets that we have to encourage future growth and development. Something has to happen in the northern part of the coastal zone. These locations on the water and next to I-95 are selling points to prospective businesses. This area could encourage existing companies to expand or new companies to come to Delaware.

How do we overcome the competing interests of job growth and the hurdles caused by the permitting process and environmental concerns? In Claymont, the residents are concerned about jobs. This is almost the exact opposite of what happened in Newark where employment was not an issue. In order to get a project fast tracked it needs to come from a level of desperation to get the public sentiment on your side. This was a factor when the Brandywine and Christina Development projects took place – it was an act of desperation. 36

The only time you really effect positive change is when you are in a crisis situation. That is the only way we are going to get the Coastal Zone amended. Jobs are critical and crucial. If you don’t have a vibrant economy you can’t have any vibrant programs whether it be educational, social service or environmental – if you don’t have a vibrant economy you don’t have anything.

That is evidenced by the City of Wilmington… Clearly – the biggest challenge for the City of Wilmington, besides public safety, is education and jobs. Hope for the residents. Unfortunately, there is really not a lot of hope for the unemployed at the current time.

What do you see on the horizon as the next big investment? In terms of the future of the construction industry, there is a tremendous need on the infrastructure side.

What about Port expansion? Definitely tremendous opportunity there. It is a real asset and a job generator. It creates quality, good paying jobs but it will take a lot of investment. There are also environmental issues. I don’t think governments in the area have the resources available to make the investment necessary. It will be done with significant investment from the private sector.

You got to see Delaware at a prosperous time and obviously we are not anywhere near that today. You are in a unique position – what do you see from your perspective? The state has to draw on its biggest assets from an economic development stand point – those are our higher education communities, our healthcare community and our existing business base. The corporate climate as well – law firms, the Chancery Court and companies like CSC – we are still highly regarded for our workforce. In parts of the state we have very capable infrastructure and sophisticated levels of technology. We don’t have it all over the state, but it does exist in key areas. We have so many undeveloped and underutilized areas. Perhaps we can better utilize opportunities at and near the New Castle County airport. I really think you have to draw on our successes and there have to be changes to the coastal zone in the northern part of the state.

What are next steps for John Casey as a private citizen? I’ve been blessed for having been involved with state and city government for the first half of my career and with DCA for the past 21 years and I hope to stay involved with the community and with the construction industry. I have a wonderful family and I look forward to spending more time with my wife Judy, daughter, son-in-law, three grandchildren and my son. I enjoy walking, riding my bike, playing golf and watching basketball with my friends. We have a little beach house, Delaware is home and I look forward to retirement. n James DeChene Director, Government Relations Delaware State Chamber of Commerce jdechene@dscc.com

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

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Construction and Real Estate

Delaware Competes in the Region BY LARRY NAGENGAST

SEVERAL OF DELAWARE’S top construction firms expect 2016 to be a solid year, but they are wary of what the future might hold. A less than robust state budget outlook, the uncertain future of the DuPont Co. and its Chemours spinoff in the state, and a shrinking pool of skilled craftsmen are among their concerns. But there’s room for optimism too – thanks to plans for a major redevelopment on the former Evraz Steel site in Claymont, projects at the University of Delaware’s STAR Campus in Newark, another round of hospital construction and the likelihood of further expansion by JPMorgan Chase. Delaware is “not as strong as in other geographic sectors” in the region, says Greg Sawka, CEO of Wilmington-based Bancroft Construction. “I don’t see too much vibrant activity, not like I’m seeing in the suburbs of Philadelphia and Baltimore,” adds Mike Berardi, senior vice president of Wohlsen Construction Co. in New Castle. Both Bancroft and Wohlsen, regional firms with projects that often take them into Pennsylvania, New Jersey and Maryland, have plenty of work to keep them going through 2016, with some projects likely to stretch into 2018. “Our backlog is solid, and pretty well split” among the four states, Sawka says. Bancroft is partnering with Delle Donne & Associates Inc. in the development of UD’s STAR Campus, where the first two construction phases are complete and plans for the third phase are being solidified. Delle Donne announced last year that a 10-story tower that will host high-tech information technology, engineering and wellness businesses as well as a residential area for employees of companies located on the campus. Plans for additional structures are being firmed up and will likely be announced in the spring, Sawka says. By summer, Bancroft will be finishing the six-story Candlewood Suites hotel just south of UD’s athletic complex and will be well into a one-year project at the Cannon Laboratory on the UD campus in Lewes. Wohlsen’s biggest current Delaware project is the new four-story, 145,000-square-foot corporate headquarters for the Corporation Service Co. at Little Falls, west of Wilmington. With completion expected in the spring or summer, the facility will have a corporate campus environment, “a well-appointed building with all the bells and whistles,” including an 38

under-floor air distribution system that promises energy efficiency and ease of internal refitting anytime CSC decides to relocate walls between offices or other areas in the building, Berardi says. While those projects and others in their pipelines give Bancroft and Wohlsen a sense of security moving forward, there is a lack of clarity about what the future holds. The state’s budget woes and uncertainty over the future of Chemours and the impact of the DuPont layoffs and merger with Dow Chemical on state finances make it likely that the state will go slow on authorizing new construction projects. “We’ve taken some body blows,” Sawka says. However, when the state’s financial picture improves, “there will be tremendous pent-up demand,” Berardi adds. Another area of concern is a shortage of skilled workers, a result of the recession of 2008-2009, that affects almost every trade and both union and non-union shops. “When the recession hit, construction was hurt more than most other industries,” Berardi says, with significant numbers of workers leaving the field to find work in other sectors. “Work has picked up in the past year, so we’re feeling the squeeze now,” Sawka says. “The biggest challenge is to get people interested in the industry. Our workforce tends to be older, so we have to attract young men and women,” Berardi says. Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Other professions may seem more exciting and some young people may be put off by physical labor, he says. “They’re thinking, ‘why work my butt off when I can sit behind a computer and do what I do?’” Looking ahead, contractors have identified projects that offer cause for optimism. Sawka eyes the proposed First State Crossing project in Claymont, where a Missouri-based developer plans a multi-purpose office, warehousing and light manufacturing site that would take advantage of easy access to I-95, I-495, rail lines and the Philadelphia International Airport, as well as the possibility of port development on the Delaware River. Berardi points to hospital construction statewide: Bayhealth Medical Center is about to build a $150 million healthcare center in Milford; Christiana Care Health System has announced plans for an eight-story, $260 million Women’s and Children’s Center on its Christiana Hospital campus; Beebe Hospital in Lewes is considering a $200 million expansion; and SUN Behavioral Health has received state authorization to build an $18 million, 90-bed psychiatric hospital in Georgetown, with construction to start this summer. In addition, JPMorgan Chase recently purchased a parking lot adjacent to its downtown Wilmington campus that could become the site of additional offices and has options on portions of the AstraZeneca site in Fairfax, where it opened its Delaware Technology Center last fall. “Something’s going to happen. It’s just a matter of time,” Berardi says. n

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Construction and Real Estate

“It Takes a Community to Build a Courtyard” BY SHAWN CROWLE, TEVEBAUGH ASSOCIATES

DELAWARE TECHNICAL COMMUNITY COLLEGE

Phase II - Community Survey

(DTCC) is renovating their existing Newark, Stanton Campus Courtyard. Tevebaugh Associates and Sikora Wells Appel proposed a project approach to ensure the proposed design was a direct result of the community college’s vision through hands on participation in all design phases. Demolition of the existing courtyard will start in mid December during DTCC’s winter break. In addition to the community participation examples below students will also be attending a pre-bid meeting, ground breaking ceremony and construction tours.

To determine the community’s needs and vision for the new courtyard a survey of DTCC students, staff and faculty was conducted. 687 individual responses were recorded. There were a variety of creative ideas, but the majority of responses had a common theme. The community had a strong desire for additional seating, brighter colors and more shade. This knowledge formed the basis for the new design.

Phase I - Existing Conditions Survey DTCC Civil and Architectural Engineering students worked with professional engineers and surveyors from Duffield Associates. Students had an opportunity to gain hands on experience by using state of the art GPS based surveying equipment to document the existing courtyard features and topography. The data is key to generating accurate grading plans for the new design. 40

Phase III - Student Design Committee Tevebaugh hosted a student design workshop inviting DTCC students to work with the design team and share their ideas for the courtyard. The students submitted four design concepts based on the results of the community survey. The strongest aspects of each design were assembled to form an integrated final design solution that embodies the community’s desired vision. n

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

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Career Services & Internships

Higher Ed: The Job Path BY LARRY NAGENGAST

FOR MANY YEARS, the career services office has been a place college students didn’t utilize until a couple of months before graduation … when they suddenly realized that finding a job might really be harder than actually going to work five days a week. University officials are working hard to break that traditional mindset. At Delaware State University, the Career Center has developed a fouryear co-curricular program to keep in touch with students from their first day of class until they receive their diplomas, says Donna Covington, dean of the College of Business at Delaware State University. “We try to create a pathway out, lead the student on the journey they choose and coach them along the way,” she says. Each student, Covington explains, works with an advisor to prepare an Individual Development Plan (IDP), which serves as a roadmap in working outside the classroom to secure the skills needed to succeed after graduation. Freshman year starts with identifying interests, translating them into career goals and determining what classes must be taken to achieve those goals. Sophomore year focuses on developing personal skills essential for the chosen career. Junior year is oriented toward the chosen profession, including an internship, and senior year is the transition – loaded with job applications and interviews. 42

At the University of Delaware, outreach also begins in freshman year, says Nathan Elton, director of career services. The typical freshman curriculum includes a “first year seminar” and the Career Services Center typically tries to make a presentation during each of these seminars, Elton says. Students’ increasing interest in securing internships, even in their freshman and sophomore years, is drawing more students to the office earlier in their academic careers, he adds. Career services “make a big contribution to a student’s return on investment in a college education,” says Mary McCaffrey, director of the Office of Career and Personal Development at Neumann University. “The earlier students can figure out their direction, the more likely they are to stay in school and complete a degree,” she says. Taking the online assessments offered by the career office and seeking individual counseling can get a student on track quickly, she adds. McCaffrey’s office reaches out to students through their professors as well. If a faculty member has a conflict and cannot teach on a particular day, the careers office will offer to make a presentation so the class doesn’t have to be canceled, she says. Workshops geared to students in specific majors are also popular at Neumann. And, at UD, Career Services will bring in alumni and employers from specific industries so interested students can get detailed advice from professionals working in those sectors, Elton says. Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Through their career services offices and internship programs, the region’s higher education institutions are striving to better prepare their students for the jobs they will seek after they graduate. The career office at Wilmington University, according to Lynda Fuller, director of undergraduate programs in the College of Business, offers students one-on-one counseling as well as help with writing resumes and improving interview skills. At Delaware Technical Community College, in addition to the services offered by most schools, students and alumni may access online tools that provide career exploration and planning advice and techniques for handling job interviews, according to Justina Sapna, vice president for academic affairs. UD, Delaware State, and Wilmington University all hold one or more career fairs during the year, while Neumann, as a smaller school, belongs to several consortiums of college that hold fairs for students in specific majors. While recruiters from major employers still come to UD for a day or two at a time, the prevalence of online applications has diminished the presence of recruiters at smaller schools. “The days of flying in on an airplane are gone,” Covington says. Despite the improving outreach of career services programs, some students still don’t get the message, officials say. And then, McCaffrey says, “we get to see them as alumni.” n

Need aN INterN? Hundreds of Neumann University students are eager to land an internship with local businesses. They’re innovative, motivated and tech-savvy.

To find an intern who can help your business grow, contact Mary McCaffrey at 610-558-5537 or cpd@neumann.edu.

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

see it all at www.ﬁnalfocus.com

Our students major in Accounting, Communication, Digital Media, International Business, Marketing, Psychology, Sport Management, and other fields.

Aston, Penns ylvania • www.neumann.edu

DELAWARE BUSINESS | Ma rch/ Apri l 2016 NU_DelBusAd_3.6875x4.9375.indd 1

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Delivering Excellence, Changing Lives •

Over 100 high-quality academic programs – more than half of which are nationallyaccredited – designed to meet Delaware’s workforce needs.

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More than 2,100 industry experts serving on 84 advisory committees to ensure graduates have the skills necessary to be job-ready.

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Ninety-six percent (96%) of 2015 graduates are employed or continuing their education.

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Over 500 Delaware businesses and organizations hired our 2015 graduates.

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More than 200 articulation agreements with four-year institutions that allow graduates to transfer smoothly and economically as juniors.

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More than $5.6 million in scholarships awarded to over 9,000 students in the last 10 years.

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Approximately 70% of students graduating debt-free with an 18.2% return on their investment.

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Dual enrollment programs that serve more than 800 students from 19 school districts, giving students a jump start on a college degree.

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$1.1 billion in income added to Delaware’s economy in 2013-14 as a direct result of Delaware Tech and its students, approximately equal to 1.6% of the Gross State Product.

Visit dtcc.edu/50th to view the College’s anniversary video, alumni stories and more. Delaware_Tech_Delaware_Business_Magazine_March_April_2016.indd 1

2/16/2016 4:12:21 PM

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Career Services & Internships

The Value of Internships BY LARRY NAGENGAST

FOR A COLLEGE SENIOR, having an impressive internship on the resume is like “putting a cherry on the ice cream,” says Lynda Fuller, director of undergraduate programs in the College of Business at Wilmington University. “Most companies offer jobs first to their interns, so the probability of being hired goes up tremendously when you have a successful internship,” says Donna Covington, dean of the College of Business at Delaware State University. Internship standards vary among schools in the region. Some require them and offer academic credit, and others do not. Some internships are paid, and some are not. Whether it’s required or not as part of the curriculum, completing one internship – or more – is practically a prerequisite for securing a job upon graduation. “Internships have become so critical for success” for both employment and graduate school that students start seeking them in their freshman and sophomore years, says Nathan Elton, director of career services at the University of Delaware. Internships are beneficial for several reasons, officials agree. Not only do students have the opportunity to apply the skills and knowledge they have developed in the classroom, but they can also familiarize themselves with the work environment for their chosen profession and, perhaps most importantly, they can learn for themselves whether they feel comfortable in a particular line of work. At Wilmington University, Fuller says, students in the sports management program must complete two internships. In other business school majors, internships are strongly encouraged but not required. Students earn three credits for completing a 15-week internship, which must complement the student’s other course selections. “We’re adamant that we get a detailed job description,” Fuller says. “Our students are paying for this, for credit, and we will not have them answering phones or filing. It has to be a project, or marketing – something substantial.” Employers should not view internships as a way to “have an extra body available,” says Mary McCaffrey, director of the Office of Career and Personal Development at Neumann University. While internships at Wilmington University (except in accounting) are unpaid, DSU’s Covington believes that all internships should be paid. “My experience is, when people don’t pay for stuff, they don’t have a great appreciation for it,” she says. DELAWARE BUSINESS | Ma rch/ Apri l 2016

McCaffrey agrees with Covington but notes that many nonprofit organizations, especially those in the human services field, can’t find money in their budgets to pay interns. Delaware Technical Community builds work-based learning opportunities, most of them paid internships, into many of its programs, says Justina Sapna, vice president for academic affairs. Program leaders, deans and campus directors work with local employers to identify and maintain meaningful opportunities for Delaware Tech students, she says. Before taking on an internship, Neumann students must participate in a workshop that covers interviews, writing resumes and how to act professionally in the workplace. Students check in with an advisor three or four times during the internship and must complete a capstone project that summarizes their experiences, McCaffrey says. In addition, Neumann checks with the employer on the student’s performance, including writing and communications skills and how they interacted with others in the workplace. Students should not accept an internship sight unseen, McCaffrey and Elton say. When they interview for the internship, they should consider it an opportunity to interview the employer – to determine how valuable the experience will be for them. As Covington notes, “an internship will give you a deeper understanding of what you think you want before you’re all in.” n 45

Newsbites Company Partners with Local Nonprofits Boys & Girls Clubs, Junior Achievement, and Big Brothers Big Sisters Sallie Mae, the nation’s saving, planning, and paying for college company announced its charitable foundation, The Sallie Mae Fund, made three significant grants to support programs that help Delaware students prepare for college. The company provided $50,000 to the Boys & Girls Clubs of Delaware, $30,000 to Junior Achievement of Delaware, and $25,000 to Big Brothers Big Sisters of Delaware. The $50,000 grant to the Boys & Girls Clubs of Delaware will support college-awareness programs, including learning resources centers at club locations throughout the state, books and curriculum-based guides for tutors at every grade level, and dedicated space for academic tutoring.

National Marine Products Manufacturer and Exporter Relocates Northeast Distribution Hub to Delaware Datrex, a privately held US manufacturer and distributor of marine safety products and supplies, recently leased space at the Airport Business Center in New Castle, relocating their northeast distribution center from Lancaster, PA to Delaware. NAI Emory Hill agents Becky Harrington and Lorraine Sheldon executed the five-year lease of 3,680 square feet of space at 100 Quigley Blvd. to Datrex, which manufactures emergency rations, drinking water, liferings, survival craft spares and photo luminescent signage. Founded in Miami in 1970, Datrex has become a main supplier of US marine safety equipment and is headquartered in Kinder, LA and

has distribution centers in Miami, FL, Jacksonville, FL, Seattle, WA and New Castle, DE.

DSU Finalized New Agreement Jeju National University of South Korea Delaware State University has finalized an agreement with Jeju National University of South Korea that will establish a bachelor’s degree program in accounting and management concentrations in business administration and management information systems. DSU President Harry L. Williams signed the new agreement with JNU President Hyangjin Huh at a Jan. 8 meeting at DSU between the officials of both institutions. With the agreement, JNU students taking part in the program will complete their first two years of study at Jeju. In the third year, the JNU students will enroll at DSU their final two years of study and receive bachelor’s degrees from both institutions. The enrollment goal of the agreement is to enroll 10 to 50 JNU students per year.

Calendar of Events THURSDAY, MARCH 10, 2016

Networking Breakfast at Assurance Media, LLC 7:30 a.m. - 9:00 a.m. Assurance Media, LLC 590 Century Blvd., Suite B Wilmington, DE 19808

TUESDAY, MARCH 22, 2016

Spring Legislative Brunch & Manufacturing Conference 9:00 a.m. - 12:30 p.m. Delaware Technical Community College - Terry Campus 100 Campus Drive, Education Technology Building, Dover, DE 19904

WEDNESDAY, MARCH 30, 2016

Networking Breakfast with the Blue Rocks 7:30 a.m. – 9:00 a.m. Frawley Stadium 801 S. Madison St. Wilmington, DE 19801

Beebe Healthcare Receives Recognition for the Care it Provides to Patients with Heart Failure

THURSDAY, APRIL 14, 2016

Beebe Healthcare has earned The Joint Commission’s Gold Seal of Approval and the American Heart Association’s Advanced Certification in Heart Failure. “Beebe Healthcare has thoroughly demonstrated a high level of care for patients who are being treated for heart failure,” said Wendi J. Roberts, RN, executive director, Certification Programs, The Joint Commission. “We commend Beebe for becoming a leader in heart failure care, potentially providing a

401 E 12th Street

Networking Breakfast at Howard High School of Technology 7:30 a.m. - 9:00 a.m. Howard High School of Technology Wilmington, DE 19801

TUESDAY, APRIL 19, 2016

Meet the New Members 8:30 a.m. - 10:30 a.m. 1201 N. Orange St. First Floor Board Room Wilmington, DE 19899

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

DELAWARE BUSINESS | Ma rch/ Apri l 2016

Newsbites higher standard of service for cardiac patients in its community.” Nancy Brown, CEO of the American Heart Association, also congratulated Beebe.

U.S. Foreign Policy Change with Cuba Paves the Way for New Delaware Law School Class Delaware Law School will debut a course this spring that takes advantage of the U.S. foreign policy change with Cuba. The class will include a one-week excursion to the island nation. Assistant Professor Christine D. Allie will teach the three-credit “Business Transactions in Emerging Economies” class. It will meet three Saturday mornings early in the semester, followed by the trip during spring break the week of Feb. 29. Nearly 30 law students have enrolled.

Commissioner Karen Weldin Stewart Receives National Recognition as Insurance Pioneer Influential trade publication Captive Review magazine has named Insurance Commissioner Karen Weldin Stewart to its first Enterprise Risk Captive Pioneers list, recognizing 20 of the “key influencers” in the United States’ smaller captive industry. These captive entities, known as Enterprise Risk Captives (ERCs), have played a significant role in Delaware’s captive growth. In a little more than five years, Delaware became one of world’s preeminent captive insurance domiciles, in large part by providing ERCs a captive insurance domicile that has knowledgeable regulators and laws that encourage the formation of captive insurers.

Chesapeake Utilities Announces a Reduction in Natural Gas Costs in its Delaware Service Area Chesapeake Utilities (“Chesapeake”) announced today that customers in its Delaware service territory will see a reduction in the Gas Sales Service Rate (GSR) component of their natural gas bills this winter. The proposed GSR reduction will result in a decrease of approximately $46, or 27 percent, for usage of 120 Ccf, which is the winter month average for Chesapeake’s residential customers, and which will more than offset the Company’s recent application for an adjustment to its delivery service rates. The net overall savings to a residential customer using 120 Ccf would be $41, assuming temporary delivery rates are approved. Both the GSR reduction and the delivery service rate adjustments are subject to review and approval by the Delaware Public Service Commission.

Walmart Smyrna Distribution Center Supports the Ronald McDonald House of Delaware Representatives of the Walmart Smyrna Distribution Center grants committee recently presented a check in the amount of $500 to the Ronald McDonald House of Delaware. Support from Walmart will help to offset the

costs to house and provide support services to local families with a seriously or chronically ill or injured child who is being treated at a hospital in the Wilmington area. “We are grateful to the Walmart Smyrna Distribution Center for its support of local families staying at the House,” said Pam Cornforth, President & CEO of the Ronald McDonald House of Delaware.

Companies and Organizations Receive Health Champion Designation through Nationwide Wellness Initiative The American Diabetes Association has launched Wellness Lives Here, a new initiative that focuses on employee and community wellness by working with organizations to inspire and fuel healthful habits at work and beyond. One aspect of the initiative, the Health Champion Designation, recognizes companies for their efforts in implementing wellness programs and improving employee health. Two hundred sixty-two companies, organizations and communities across the U.S. – ranging from hospitals and trucking companies to school districts and nonprofits – have already been designated Health Champions, and more companies are applying every day.

SAVE THE DATE Superstars in Education awards ceremony will be held at Wilmington University’s Doberstein Admissions Center Auditorium in New Castle on May 9, 2016, 4:45 to 7:00 p.m. Register today www.dscc.com

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

CHAMBER Committees

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.

Committee monitors issues, policies, and trends affecting Delaware’s infrastructure and transportation systems, as well as advises the Chamber’s Board of Directors on related policy issues. For more information, contact James DeChene at (302) 576-6560 or jdechene@dscc.com.

Employer Advocacy & Education Committee: The Employee Advocacy and Education Committee promotes and assists the employment interests of Chamber members. It is a forum for members of the Chamber to discuss and evaluate human resource and personnel issues facing Delaware employers; to actively engage in the legislative process to develop and implement legislative solutions; to advise the Chamber leadership on the impact of proposed legislative and regulatory measures; and to educate the membership about regulatory requirements affecting their bottom line. The committee meets at least quarterly to identify and develop strategies for current and future issues, and holds special events open to Chamber members to focus on timely topics in the field of human resources and personnel management. For more information, contact James DeChene at (302) 576-6560 or jdechene@dscc.com.

Military Affairs Committee: The Military Affairs Committee aims to build efforts to support the hiring of military veterans, and to support the local branches of the military on other relevant issues. Its goals include building business relationships to support the military community, and to create jobs for reserve components and veterans. The committee meets quarterly, and is chaired by Gary Stockbridge of Delmarva Power. Contact: James DeChene at (302) 576-6560 or jdechene@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: James DeChene at (302) 576-6560 or jdechene@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: James DeChene at (302) 576-6560 or jdechene@dscc.com. Tax Committee: This committee reviews tax legislation and advocates for the reduction of personal and business taxes in Delaware. Contact: James DeChene at (302) 576-6560 or jdechene@dscc.com. Infrastructure and Transportation Committee: The Infrastructure and Transportation Committee recognizes the critical role that the condition and functionality of Delaware’s infrastructure and transportation systems play in creating a strong economy and quality of life. The Infrastructure and Transportation DELAWARE BUSINESS | Ma rch/ Apri l 2016

Delaware Young Professionals Network: This 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 DYPN, for professionals between the ages of 21 and 40, aims to develop Delaware’s young workforce through professional business networking and personal growth. Contact: Kelly Wetzel at (302) 576-6564 or kwetzel@dscc.com. Economic Development Committee: The Delaware State Chamber of Commerce’s newest committee will see its inaugural meeting early 2016. Contact Mark DiMaio at (302) 576-6575 or mdimaio@dscc.com

got news? Submit a press release to the Delaware State Chamber and it will be posted on our website, on social media and considered for publication in our monthly member e-news email and in Delaware Business magazine.

Maximize your membership

and submit your organization’s news to Rana Fayez at rfayez@dscc.com

Delaware State Chamber of Commerce

SMALL STATE. BIG BENEFITS. UPS Shipping Discounts Save up to 34% on a broad portfolio of shipping services including: •U p to 34% on UPS Air letters including UPS Next Day Air®* •U p to 30% on UPS Air packages (1 lb.+) • Up to 32% on UPS International imports and exports •U p to 16% on UPS Ground shipments •S avings begin at 70% on UPS Freight® shipments over 150 lbs. DSCC members can receive these discounts even if you already have a UPS account. Whether you need your documents or packages to arrive the next day or are looking for the most affordable shipping option, UPS understands the importance of reliability, speed, and cost. Plus, the more you ship, the more you can save with UPS. To enroll and start saving today, visit www.savewithups.com/dscc. For more information, call 1-800-MEMBERS (1-800-636-2377). UD Online MBA Scholarship Through an Affiliate Partnership with the Lerner College of Business & Economics, Chamber members will receive an affiliate program scholarship for $5,000 off of their tuition for the University of Delaware Online MBA Degree Program. The Lerner College Online MBA is an AACSB-accredited program that can be completed in as little as sixteen months. This powerful new education option offers the quality, flexibility, and convenience to earn an MBA degree from a highly regarded, nationally ranked, public university. In addition to the $5,000 affiliate scholarship, Chamber member employees will be eligible to apply for the Dean’s Merit Scholarship, which awards the most highly qualified candidates up to an additional $5,000 in scholarship funding. Visit www.apdegree.com/DSCC to get started. 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.

Member-to-Member Discount Directory State Chamber members offer substantial savings on products and services to fellow members. To see the full list of discounts online, visit www.dscc.com and click on Member2Member Discounts. 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. Certificate of Origin Documents Certificate of Origin documents are $20 for Chamber members ($100 for non-members). Call (302) 655-7221 for more information. 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. 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) 598-8791 to apply, mention priority code FABLHRAQ. 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. 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

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

HAMBER BENEFITS

HAMBER BENEFITS MEMBER-TO-MEMBER DISCOUNTS

than what is available to other customers. To sign up, visit the Constant Contact link on the State Chamber’s members-only page or call (866) 876-8464 to activate your member discount.

State Chamber members offer great savings on products and services for fellow member businesses in the Member-to-Member Discount Directory.

Continuing Education Certificate Discounts The University of Delaware offers a 10% discount to State Chamber members when they choose to sign up for continuing education certificate programs. LegalShield All Delaware State Chamber members and member companies now have the opportunity to access affordable legal services. LegalShield is one of the nation’s leading providers of legal safeguards for individuals, families, small businesses and employee groups. Member companies can join the more than 34,000 companies currently offering LegalShield’s personal legal plans as a voluntary benefit to their employees. Through LegalShield’s personal legal plans, employees gain access to unlimited personal legal advice from LegalShield provider attorneys on topics such as mortgages, wills, contracts, and more. Employees also have the option to enroll in LegalShield’s identity theft plans for the added benefits of identity monitoring and identity restoration services. LegalShield’s personal legal plans also effectively reduce employee stress and absenteeism while driving increased productivity. The Small Business Plan provides member companies with legal advice and counsel on any business legal issue, contract and document review, debt collection, trial defense and more. In eliminating cost barriers associated with obtaining legal counsel, LegalShield’s Small Business Plan ensures members have access to the legal support they need to grow and protect their businesses. To get started with LegalShield, visit www.legalshield.com/info/ dscc. For more information, contact Independent Associate Mike Schwartz at (302) 275-8898. mikeschwartz.legalshieldassociate.com

Access full details on these benefits of membership in the members-only section of the DSCC website. For more information about obtaining your company’s members-only login credentials, please email info@dscc.com.

Check it out on the State Chamber’s website! www.DSCC.com

THE WEEKLY REPORT The Weekly Report is the Delaware State Chamber’s digital publication, which features important business articles, legislative updates and timely state news.

PURCHASE A BANNER AD TODAY! Price effective rates: $150 per ad / Additional $50 click-through ad-on

Contact Kelly Wetzel kwetzel@dscc.com for more information. DELAWARE BUSINESS | Ma rch/ Apri l 2016

CALL THE CHAMBER The State Chamber of Commerce staff works for you, serving our 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.

A. Richard Heffron 576-6563 President rheffron@dscc.com

Marianne K. Antonini 576-6567 Sr. Vice President Finance & CFO mantonini@dscc.com Cheryl Corn Executive Assistant to the President Sr. Vice President Communications

576-6572 ccorn@dscc.com

James DeChene Director, Government Relations

576-6560 jdechene@dscc.com

Mark A. DiMaio Director, The Partnership, Inc.

576-6575 mdimaio@dscc.com

Linda D. Eriksen Accounting Associate

576-6569 leriksen@dscc.com

Rana Fayez 576-6566 Communications Manager rfayez@dscc.com Delaware Business Production Website Chuck James 576-6562 Sr. Vice President, Membership cjames@dscc.com Ambassador Committee Fred Miller 576-6579 Advertising Sales fmiller2@dscc.com Member Retention Bill Osborne 576-6590 Interim President, DPPI bosborne@dscc.com Kelly Wetzel 576-6564 Program & Communication Specialist kwetzel@dscc.com Small Business Alliance Delaware Young Professionals Network

Ken Evans 576-6576 Account Executive kevans@dscc.com

DELAWARE STATE CHAMBER OF COMMERCE 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: delawarebusinessmagazine.com facebook.com/delawarestatechamber twitter: @Destatechamber

Marc h / Ap r i l 2016 | DELAWARE BUSINESS

Emphasis on Forensics and Fraud Detection

Master’s Degree in Accounting

It all adds up. The Neumann University master’s degree in Accounting adds up to greater opportunity. The emphasis on forensics and fraud detection will provide you with credentials that are in demand. Neumann’s program allows you to: • Finish in just 18-21 months • Study in class and online • Focus on forensics and fraud For more information: gradadultadmiss@neumann.edu 610-361-5208

Aston, Pennsylvania