Business Magazine August 2023

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2023

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BUSINESS RET. U.S. WILLIAMADMIRALMCRAVEN: TAKINGCOMMANDINLEADERSHIP VOL. XXXIII NO. 10 October 2020 / PAGE 22 PLUS: CELEBRATION GOES VIRTUALIN2020 / PAGE 47 OCTOBER 14, 2020 EE Austin & Son offers a dynamic management team committed to providing construction excellence. Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906. EE Austin & Son remains steadfast in its century old promise to... “Do the right thing...all the time.” It’s the Austin Difference. First Choice Northwest PA & Southwest NY’s Industrial Education Retail Hospitality Concrete Institutional Healthcare Contractors & Construction Managers Since 1906 814.454.7147 www.eeaustin.com OCTOBER 11, 2023 BAYFRONT CONVENTION CENTER, ERIE  5 P.M. MEMBER COCKTAIL RECEPTION  7 P.M. MAIN EVENT Contact Melissa at 814/833-3200 or visit mbausa.org for more informationor to reserveyourtable. Sponsored by: American Fighter Pilot, Diplomat and Airline Pilot Best Known for the “Miracle on the Hudson” COMPANY PROFILE History At the end of WWII, there was growing need to modernize and expand the nation’s warehousing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to fill those needs. Company after company was springing up, headed by owners who carved out a market share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding companies, investment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist. Ridg-U-Rak was minor player in those early years. Although limited in marketing vision and hampered by lack of manufacturing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the operation celebrates more than 75 years of serving the storage rack market, Ridg-U-Rak is commonly acknowledged as a company built on Integrity and Service, guided by the able leadership of More than 75 Years of Excellence in Serving the Storage Rack Market John B. Pellegrino Sr., P.E. president and CEO Ridg-U-Rak North East, PA 16428 Toll-Free 866/479-7225 www.ridgurak.com President and CEO John B. Pellegrino Sr., P.E., Vice President of Plant Operations John B. Pellegrino Jr. and Vice President of Sales and Engineering Mark E. Pellegrino. Capabilities Ridg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with production capacity of more than 140,000,000 pounds of finished steel products per year. With the addition in 2018 of its five-and-a-half-acre, under roof, warehouse and distribution center, Ridg-U-Rak has greatly increased the efficiency of its shipping department and freed up space for increasing manufacturing capacity at the main plant. These improvements are what contribute to it remaining one of the largest storage rack manufacturers in North America, and is still family owned business. One of the key contributors to the company’s success has been the increased talent base of its staff, with the ability to completely manage large projects from design and code compliance, through manufacturing, to final installation and customer approval. Major capital investments in its manufacturing plants have been instrumental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality, but also the company’s environmental imprint by reducing its liquid paint usage. From recycling programs to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustainability expectations. Products Ridg-U-Rak provides an unlimited array of storage options. Whether heavy industrial storage racks for large warehouses, deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can layout storage arrangements to meet customer’s unique load, throughput and capacity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, and offers replacement parts that interchange with competitive racks. Many specialty storage options are available, including racksupported crane system to store large dies and tools. mbabizmag.com OCTOBER 2022 Ad Materials Deadline: SEPTEMBER 11, 2023 MFG Day Showcase Listing: $200 Listing Reservation: AUGUST 23, 2023 Listing Materials Due: AUGUST 29, 2023 FEATURING

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BUSINESS

WHY NATURAL GAS IS PA’S RELIABLE ENERGY SOLUTION

SPOTLIGHT Q&A: ERIE WATER WORKS TAPS INTO ECONOMIC GROWTH

PLUS: ENERGY TIPS THAT CAN HELP EMPLOYERS SAVE

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NETWORKING AND MORE

See the latest happenings at the MBA and with members in the region!

READ ON THE GO!

For the most current Business Magazine updates, visit mbabizmag.com

FEATURES

WHAT’S INSIDE | FEATURED STORY

3

POWERING FORWARD

How energy is energizing the economy, business.

COVER STORY | LOCAL PROFILE

4

NATIONAL FUEL

Why natural gas is Pennsylvania’s reliable energy solution.

SPOTLIGHT Q&A | UTILITIES

7 Paul Vojtek , chief executive officer and chief financial officer of Erie Water Works (EWW), provides an update on EWW’s commitment to operate, maintain and rehabilitate the water system for the Erie, Pennsylvania region.

EDITORIAL

LEGAL BRIEF | SOLUTIONS

9 What to consider when choosing an alternative energy supplier in Pennsylvania. Thomas Pendleton ON THE HILL | WORTH NOTING

13 Untapped Talent: Hiring people with disabilities.

Eileen Anderson

Executive Editor Karen Torres ktorres@mbausa.org

Contributing Writers

Eileen Anderson

Thomas Pendleton

Judy Rosatti

Rachel Tserkovniak

Karen Torres

Patty Welther

info@printingconceptsonline.com

Advertising Sales

Frank Mehler 814/833-3200 fmehler@mbausa.org

David Thornburg 814/833-3200 dthornbug@mbausa.org

Amy Breitfelder 814/833-3200 abreitfelder@mbausa.org

On the Cover: National Fuel discusses why natural gas is Pennsylvania’s reliable energy solution. For full story, see page 4.

Manufacturer & Business Association Headquarters: 2171 West 38th Street Erie, PA 16508 Pittsburgh: 850 Cranberry Woods Drive, Suite 2224 Cranberry Township, PA 16066 814/833-3200 |800/815-2660 | mbausa.org

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POWERING FORWARD

ENERGY AND UTILITIES HELP PROPEL THE ECONOMY, BUSINESS

The energy and utility sector plays a pivotal role in driving economic development, job creation, technological progress and revenue generation — with farreaching implications in helping propel the economy and businesses forward.

The energy sector primarily consists of companies that play a role in extracting, refining or producing sources of energy. Utility companies, on the other hand, focus on providing their customers with electricity, water and other public utilities.

Yet, according to a report by PwC, energy and utility companies share a common desire with their customers in 2023: affordability. “Homeowners, families and workers want to make their hard-earned dollars stretch even further while prices for products and services remain high,” the report states. “Commercial and industrial customers want to curb costs while supply chain and labor concerns are still a factor.”

According to the PwC, the industry’s strategic reinventors will continue to explore new ways to balance these important goals with 2023’s real obligations and uncertainties. Opportunities are expected through reinvention, which could mean continuing to explore new services, offerings and strategic business relationships. It may also come from reinvesting in the business — from embracing new technologies that help serve customers better or operating at a lower cost to expanding environmental, social and governance (ESG) goals.

In this issue of the MBA Business Magazine, we’ll explore the powerful impact of the energy and utility sector

and ways that it is helping propel the economy and business forward. Specifically, we’ll hear from Mike Colpoys of National Fuel on why natural gas is Pennsylvania’s reliable energy solution. We’ll also talk to Paul Vojtek of Erie Water Works on how EWW is tapping into economic growth in the Greater Erie region.

Plus, don’t miss our expert articles on how to choose an alternative energy supplier in Pennsylvania or the best ways to mitigate rising energy costs.

The MBA is proud to offer MBA members a viable energy program to assist with their energy solutions through MBA EnergyAdvisors. To learn more, visit mbausa.org.

Why Natural Gas is PA’s Reliable Energy Solution

Think about every time you turn on the lights, power on a computer or light the burner on your kitchen stove.

Most of us expect energy availability 24 hours a day, seven days a week, because energy is such an essential part of our modern world.

Energy comes from a variety of sources –nuclear power, renewables and fossil fuels. Yet, of all these resources, natural gas is widely considered one of the cleanest, most affordable energy resources for U.S. homes and businesses.

And, in the natural gas market, Pennsylvania is an emerging powerhouse.

Pennsylvania sits on top of one of the largest natural gas fields in the world with the Marcellus and Utica shales (second only to Texas in the United States). The abundance of these reserves ensures a stable and long-term supply of natural gas — and PA’s answer to a reliable energy solution.

According to Mike Colpoys, senior vice president for National Fuel Gas Distribution Corporation, Pennsylvania is the second largest electric generating state in the country thanks to natural gas. It has also reaped some of the largest benefits of shale development.

“PA shale gas has led to lower natural gas prices, reasonable electric costs and reduced emissions (replacement of coal generator plants),” explains Colpoys. “The United States has seen the most emission reductions of all the countries participating in the Paris Accords because of natural gas power generation replacing coal generation.”

LEGISLATIVE HURDLES

Despite such progress, recent legislation threatens to penalize the growth of the natural gas market. Industry experts argue many states enacting measures, such as New York’s efforts to prohibit new hook-ups to gas stoves, are not properly considering reliability or affordability. They say the proposals are pushing for a rapid transition to an all-electric economy powered by intermittent renewable wind or solar and zeroemissions dispatchable technologies, such as storage/batteries, that do not exist today.

“It is cost prohibitive for large segments of the population,” says Colpoys. “These measures will result in significant up-front costs for

homeowners and small businesses and drive electric utility rates significantly higher to pay for the grid buildout and modernization.”

According to National Fuel, some groups are pushing for the simultaneous decommissioning of the “safe, reliable, resilient underground and already paid for” natural gas system. National Fuel states this would leave consumers with only one energy delivery system and dependent on unreliable sources of energy and significantly more prone to outages, particularly during extreme winter weather events on the coldest of days.

“Reliability of energy is life or death,” maintains Colpoys, who cites the Buffalo blizzard of Christmas 2022 and power crisis in Texas in 2021. “A plan to transition to alternative sources of energy to meet peak winter demands of our service territory must ensure that the source and delivery capabilities are as reliable as today’s natural gas system.”

The Manufacturer & Business Association, for one, has supported and lobbied for support of Energy Choice. The proposal calls for sound energy policy for Pennsylvania with consistency in laws, regulations and policies, and addresses the patchwork of regulation that comes with allowing some 2,500 municipalities to take energy policy into their own hands. Twenty-one states already have Energy Choice-like policies in place.

“Americans and Pennsylvanians should have the right to choose how they heat and cook,” Colpoys states, adding that it’s impossible to run a business properly with different rules in every municipality. “This promotes regulatory certainty, and PA as a more business-friendly state, making it more competitive when attracting and keeping business.”

POWER IN NUMBERS

Natural gas has a powerful impact on the Pennsylvania economy and energy costs.

According to a new analysis conducted by PricewaterhouseCoopers (PwC), the natural gas and oil industry contributed more than $75 billion toward Pennsylvania’s gross domestic product (GDP), or 8.9 percent of the state’s total, and fueled every sector of the PA economy in 2021.

Mike Colpoys is the senior vice president for National Fuel Gas Distribution Corporation.

In 2008–2009, before the boom in shale gas supplies that drove commodity prices down, the average monthly bill for a National Fuel Pennsylvania residential customer was $169. In 2021–2022, it was $80.

Pennsylvania’s shale development also could play a powerful role in future economic growth as well as America’s pathway to energy independence.

“Although it has been limited recently due to restrictions on the industry, short-term impacts of the shale area include lower prices for utilities and goods and services and greater employment,” says Colpoys of the shale development. “Long-term impacts including energy independence means not being bound to others in the world who do not have our best interests in mind. There is potential for a large liquefied natural gas (LNG) market, which would equate to more jobs and more money for Pennsylvania and the U.S. economy.”

Pennsylvania already has a well-established infrastructure and a robust distribution network for natural gas, including pipelines, storage facilities and processing plants. The state also is strategically located near major natural gas-consuming regions such as the Mid-Atlantic and Northeastern United States.

“We have a huge opportunity to export natural gas to other regions and also provide much needed energy to the world as an LNG provider, while reducing emissions,” Colpoys adds.

ENVIRONMENT & SAFETY EFFORTS

Across the natural gas value chain, experts say industry is committed to, and highly focused on leak detection and reduction, system modernization and replacement of older pipelines, and investment in new technologies that prevent and capture methane and carbon emissions.

“Environmental stewardship is one of our guiding principles,” explains Colpoys. “At National Fuel, we utilize procedures, technologies and best management practices across our businesses, to develop, build and operate our assets in a manner that respects and protects the environment.”

In 2021, National Fuel announced aggressive yet credible emissions reduction targets.

The company committed to reducing methane intensity at each of its operating segments and established an absolute 25 percent greenhouse gas emissions reduction target by 2030 for a consolidated company using a 2020 baseline. In addition, the company continues to embed sustainability into its strategy, starting with responsible natural gas production in its upstream segments.

For example, Seneca Resources, LLC, National Fuel’s exploration and production company, has been a leader in the transition to certified natural gas. Now, 100 percent of its natural gas production is certified under Equitable Origin’s EO100 TM Standard for Responsible Energy Development and under the MiQ Standard for Methane Emissions Performance with an “A” certification grade.

National Fuel also is taking a pro-active approach to decarbonization, evaluating several alternate energy sources with lower carbon emissions, including renewable natural gas, hydrogen and hydrogen-enhanced natural gas. “We are also exploring leveraging existing natural gas infrastructure as the delivery system for low- and zero-carbon fuels,” Colpoys states.

Despite such progress made by industry, there is still much more consumers need to know about the energy market. “Renewables are not necessarily ‘renewable’ as they require landfilling solar panels and windmill blades,” explains Colpoys. “Fossil fuels are required in the manufacturing/processing of these renewables. Intermittency of renewable energy requires reliable backup of the grid that mandates overbuilding and ultimately greater cost for all. Typical electric vehicle (EV) batteries require a significant amount of mining (for lithium, cobalt and nickel) that harms the environment.”

“Education is a hurdle,” Colpoys continues. “Citizens need to take an interest and understand how this energy transition and decisions being made will impact energy for all.” 

Greater Impact

For more than a century, National Fuel has been the hometown energy team, providing safe, reliable and affordable gas service to 2.1 million people (approximately 750,000 customers) in Northwestern Pennsylvania and Western New York. Headquartered in Williamsville, New York, the diversified, integrated energy company, with more than 2,000 employees, is actively involved in the communities it serves.

In 2022, the National Fuel Gas Company Foundation, National Fuel and employees donated more than $2.5 million to charitable organizations. Since its inception in 2005, the Foundation and National Fuel employees have given more than $24 million to more than 800 organizations.

In 2023, the Foundation directed funding to support nonprofits aligned with the Foundations areas of giving. For example, in Pennsylvania, grants were awarded to ExpERIEnce Children’s Museum, Penn State Erie Behrend College, Pitt Bradford, Penn College of Technology, St. Martin Center, Our West Bayfront, Second Harvest Food Bank of Northwest Pennsylvania and Central Pennsylvania Food Bank, among many others. For more information, visit nationalfuel.com.

National Fuel Gas Company is the only company in the country directly involved in all aspects of the natural gas value chain –wellhead to burner tip — and has a unique perspective on the natural gas industry.

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Erie Water Works Taps Into Economic Growth

Erie Water Works assumed operations of Erie Water Systems on January 1, 1992, but the history dates back to 1815 and incorporation in 1865. Tell us more.

Erie has a rich history of providing water service to the residents and businesses in Northwest Pennsylvania. It began in the early 1800s with an above ground “public fire-log” system originally used to fight fires, and has grown to a state-ofthe-art water system providing potable water to more than 220,000 people via 63,000 direct customers as well as public fire protection through a network of more than 4,100 fire hydrants.

Potable water is essential to economic growth and development. Please explain. Reliable water service, both quantity and quality, is necessary to support a high quality of life as well as support economic development. Erie Water Works has been involved in numerous economic development initiatives for businesses looking to relocate in Erie, and existing businesses looking to expand their current operations. With more than $400 million invested in rehabilitating and modernizing the water system since the Erie Water Works assumed operations of the system in 1992, EWW now enjoys approximately 60-percent excess capacity and is poised to meet the current and future needs of our business community.

Describe your operations today.

Erie Water Works is governed by a nine-member board of directors, with six members residing in the City of Erie, two members from Millcreek Township and one member from Harborcreek Township. Of the nine, two members are appointed by the Mayor of Erie and seven by members of Erie City Council. EWW currently has 110 employees. Water is provided by our primary treatment plant, Richard S. Wasielewski Water Treatment Plant and our secondary plant located

at the Foot of Chestnut Street and the Bayfront Parkway. The water system includes more than 775 miles of underground pipe, 27 pump stations, 17 storage facilities and 23 pressure districts.

What does your current service area include?

Erie Water Works provides potable water service and public and private fire protection to more than 63,000 residential and commercial customers (more than 220,000 people) located in the City of Erie, Lawrence Park Township, Wesleyville Borough, Harborcreek Township, Millcreek Township, McKean Township, McKean Borough, and portions of Summit and Greene Townships. EWW also provides water to areas of Fairview and Summit Townships through bulk water take points.

In order to guarantee safe, uninterrupted, reasonably priced water supplies, which assures public health, EWW must continuously evaluate infrastructure and technology. What are some of the latest upgrades and investments that have been made?

The most important and impactful upgrade Erie Water Works has ever undertaken was the three-phase, complete renovation of the Richard S. Wasielewski Water Treatment Plant scheduled to be completed in the summer of 2023. It serves as the primary water treatment facility for EWW and has undergone a more than $100 million renovation which included: an emergency diesel-fueled backup power generator; new high-efficiency pumps and piping; a state-ofthe-art membrane filtration system, and the full renovation and modernization of the 1930s era facility. This investment will guarantee the people of Northwest PA continue to receive the highest quality water available to a public drinking water system for decades to come.

What’s ahead for EWW in the coming year? Lead line replacement is getting a lot of publicity lately. Since 1994, EWW has been adding a

food-grade phosphate to its water supply to control the corrosiveness of the water while creating a thin micro-film barrier on the inside of the pipes carrying the water. This has kept lead readings at undetectable levels for nearly three decades. In addition to this additive, EWW has been working for nearly 20 years to remove the sources of lead from our system. With the national effort to remove all potential sources of lead from public water supplies, the federal government has been providing funding for systems that have a reliable inventory of where those sources may be.

I’m extremely proud of the professional team at EWW for being ahead of the curve in their preparations to request federal funding to remove the sources of lead from our system. EWW’s team worked on the required inventory and was well prepared to request funding before many providers had taken any steps to identify lead sources in their systems. As a result, EWW has been awarded $21.4 million in grants and another $3.1 million in 1-percent loans in the first two rounds of funding to continue our efforts. Contracts have been awarded and EWW customers can expect to see crews in the region working diligently on this important project.

An additional $6 million has been requested and plans are in the works to apply for a fourth round of funding that is expected to provide adequate funding to complete the job. Of course, the phosphate additive is still being used throughout the water treatment process, but EWW is excited to be a leader in the nationwide effort to maintain the safety and integrity of public water supplies!

For more information, visit eriewater.org.

Utilities, such as water, electricity and gas, are essential services that play a vital role in economic growth development. Here, Paul Vojtek , chief executive officer and chief financial officer of Erie Water Works (EWW), provides an update on EWW’s commitment to operate, maintain and rehabilitate the water system for the Erie, Pennsylvania region.

Legal solutions for your real-world problems.

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From bet-the-company litigation to important business transactions, MacDonald Illig has the resources and legal experience to deliver.

Call: (814) 870-7600 or visit: macdonaldillig.com

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Choosing an Alternative Energy Supplier in Pennsylvania

and the utility’s charges for implementation of the Alternative Energy Portfolio Standards. The price to compare may be adjusted quarterly, but not seasonally.

When a customer shops for electricity, the customer should ask competitive suppliers to provide the customer with the price to compare so the customer can make an apples-to-apples comparison. Also, ask how long the price is effective and verify if taxes or other fees are included in the price to compare.

Where can a customer find information on current supplier prices?

Thomas Pendleton is a partner at MacDonald Illig Attorneys and concentrates his practice on business matters, including preparing agreements and commercial litigation. These agreements include leases of oil and gas interests, covenants not to compete, and contracts governed by the Uniform Commercial Code.

Over the past several years, the cost of utilities has increased, along with the cost of many other goods and services. One of the ways that consumers and businesses may be able to save money is by choosing an alternative energy supplier. Alternative energy suppliers are available for both electricity and natural gas. Before making the decision to choose an alternative energy supplier, here are some issues to consider, as well as things to keep track of during the contract:

1. What rate will the supplier charge?

Electricity rates can be fixed, which means for at least three billing cycles or for the term of the contract, whichever is longer. Even with a fixed rate, you must know when

your contract ends. Unless you act prior to the end of the contract, your fixed rate may change to a variable monthly rate. You should read your contract’s disclosure statement for the terms and conditions to find out what happens after the term expires.

2. If you choose a variable rate, that rate can change by the day, week or month, depending on the terms in the supplier’s disclosure statement. If you select a variable rate, the rate may change with market conditions. If market conditions cause the price to go up, your rate will go up. If market prices drop, your rate may go down.

Of course, fixed rates may also go up in accordance with the schedule determined by the Pennsylvania Public Utility Commission (“PUC”). Cold temperatures in winter or a heat wave in summer may increase electricity demand. These market conditions may cause an increase in utility costs, regardless of whether the rate is fixed or variable.

What is the price to compare?

An electricity distribution company’s (“EDC”) price to compare is the price per kilowatt hour (kWh) which the EDC will charge including charges for generation and transmission, the state’s gross receipts tax,

Many electric suppliers in Pennsylvania list their prices and other terms and conditions on the website, PAPowerSwitch.com. If a supplier is not found on this website, then the customer will need to contact the supplier directly. A customer should also ask for a supplier’s historical pricing information. Pennsylvania regulations require suppliers to provide up to two years of historical pricing data at a customer’s request.

Many of these same considerations exist for selecting a natural gas supplier. Rates and plans will vary based upon whether the customer is a residence, a small business or a large business. The natural gas supplier (which owns the wells or source of natural gas) and natural gas distribution company (which owns the pipelines that deliver the gas) each have their own pricing plans. These pricing plans may include introductory rates, cancellation policies and discounts available to certain customers.

Consumers and businesses who shop carefully and who understand the contracts being offered to them by the alternative energy providers may be able to save money on their utility costs. As with any contract, it is important to review the contract carefully and consult a legal professional if further guidance is needed.

For more information, contact Thomas Pendleton at MacDonald Illig Attorneys at 814/870-7624 or tpendleton@mijb.com

ACUTEC SECURES LTA PART ORDER WITH ESTIMATED WORTH OF $90 MILLION OVER NEXT THREE YEARS

Acutec Precision Aerospace, Inc. has secured a Long Term Agreement (LTA) with a multibillion-dollar aerospace customer consisting of 230 unique parts that support commercial and military aviation and power generation, the company recently announced. The systems supported by these parts include: engine, fuel and air control, hydraulic and actuation. The LTA is valued at approximately $90 million over the next three years.

According to the company, Acutec’s mission is striving to be the most respected partner in the aerospace industry, and being a partner that can handle this level of volume is critical in achieving this mission. Made up of employee-owners in over 400,000 square feet of manufacturing space, the company is fully equipped to support its partners’ growth objectives as the industry continues to soar.

Acutec CEO Elisabeth Smith adds, “Acutec is pleased that we’ve been able to respond to the long-term supply chain needs of the Aerospace industry and solidify our partnerships with key customers for years to come. It not only demonstrates our commitment to growth but also highlights the unwavering support and belief we have in our talented team. This is not just a win for Acutec but for our communities and local suppliers with whom we share our success.”

Acutec Precision Aerospace, Inc. is an award-winning, family and employee owned aerospace manufacturer providing critical components for the aviation industry.

Founded in 1988, Acutec is a precision machined metal component and subassembly supplier for aerospace and defense applications. The organization is a subcontractor both directly and indirectly for numerous platforms including, but not limited to: fixed wing, rotary wing, space, power generation and naval programs. These components are made from a diverse set of metals including inconel, titanium and novel materials.

Acutec provides the services that customers require to meet their aerospace and defense commitments by providing: CNC Milling, CNC Turning, EDM, Grinding, Assembly & Kitting, and NDT & Finishing. Acutec partners with its suppliers, with full documentation, engineering and supply systems (JIT) support. With two locations in Northwestern Pennsylvania and one in South Carolina, Acutec runs the newest in CNC machining equipment, is AS9100D and ISO9001 certified, and multiple NADCAP certifications.

For more information, visit acutecprecision.com.

CHANNELLOCK NAMED OFFICIAL SKILLSUSA TECHSPO SPONSOR

Channellock, Inc. recently was named the Official 2023 Sponsor of SkillsUSA TECHSPO Trade Show, the largest gathering of America’s future skilled workforce, held June 20–22 in Atlanta. Channellock’s TECHSPO sponsorship and donation of CHANNELLOCK® tools are part of its continued effort to develop a skilled domestic workforce and close the national skills gap.

“We are excited to once again sponsor the SkillsUSA TECHSPO Trade Show as part of our ongoing efforts to encourage young people to take an interest in the skilled trades,” said Ryan DeArment, vice president of Sales and Marketing at Channellock, in a press release before the trade show. “SkillsUSA’s mission to provide career and technical-based education opportunities is directly aligned with our company’s goal of encouraging workforce development and closing our nation’s skills gap.”

During TECHSPO, participants had the opportunity to engage directly with leaders in industry and education, as well as compete in various trade, technical and leadership fields.

“Our participation with SkillsUSA is part of a greater effort to encourage interest in the trades at a young age and give young people the information and resources they need to excel at their chosen career,” said DeArment. “Initiatives like Trade School Trade-Up and Trades 101 are other ways we support the trades by helping prospective students find trade schools and improving existing trade school programs.”

Learn more about Channellock’s commitment to the trades, including their Trade School Trade-Up and Trades 101 initiatives, as well as their partnership with SkillsUSA, by visiting the company’s Trades 101 page on channellock.com.

Channellock, Inc. is a worldwide leader in the manufacturing of high-quality pliers and assorted hand tools, including its iconic, American-made CHANNELLOCK® Tongue & Groove Pliers. Founded by George B. DeArment in 1886, the Meadvillebased company is now in its fifth generation of family ownership and operation.

For more information, visit channellock.com.

SMGI ANNOUNCES SUCCESSFUL MERGER OF BARNHART TRANSPORTATION, 5J GROUP

SMG Industries Inc. (SMGI), a transportation services company focused on the domestic infrastructure logistics market, recently announced the successful merger of the Barnhart Transportation group of companies (Barnhart), a 20 year-old established logistics service provider based in Pennsylvania with the 5J Group, a super heavy haul and crane and rigging transportation company based in Houston, Texas. According to a press release, the successful closing of this strategic merger not only approximately doubles SMGI’s annual revenue and increase its adjusted EBITDA, but also brings operational and revenue diversification, strengthens the Company’s balance sheet and adds exceptional expertise to its leadership team. The total acquisition consists of Barnhart Transportation, LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC, which specializes in a wide range of transportation services, including full truck load, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload, and an “asset lite” brokerage business.

Brothers Tim and Bryan Barnhart, the leaders behind Barnhart Transportation, bring a wealth of experience, expertise and leadership to SMGI. Over the past two decades, they have successfully diversified the company’s footprint to meet evolving customer needs. Their commitment to operational excellence and financial prudence has established a foundation of fiscal responsibility and sustainability. “Anticipating market trends and making strategic investments have been key to staying ahead in the dynamic global logistics market,” explained Tim Barnhart, the company’s new chief financial officer and Board member.

“The acquisition of Barnhart Transportation by SMG Industries is a significant milestone for both companies,” added Bryan Barnhart, newly appointed CEO and Board member.

Acutec Precision Aerospace, Inc., headquartered in Meadville, Pennsylvania, has secured a multibillion-dollar, longterm agreement with an aerospace customer. Acutec is an award-winning, family and employee owned aerospace manufacturer providing critical components for the aviation industry.

MACDONALD ILLIG ATTORNEYS RECOGNIZED AS 2023 PA SUPER LAWYERS, RISING STARS

MacDonald, Illig, Jones & Britton LLP recently announced that partners W. Patrick Delaney, John W. Draskovic, Nicholas R. Pagliari, Lisa Smith Presta and Roger H. Taft have been selected as 2023 Pennsylvania Super Lawyers. Only 5 percent of attorneys in Pennsylvania are chosen to receive this distinction.

Delaney is a trial lawyer and has experience litigating a wide variety of matters, from shareholder disputes to personal injury. In general, the focus of his practice is commercial litigation. Draskovic, chair of MacDonald Illig’s Workers’ Compensation Practice Group, is recognized for his work in the area of Workers’ Compensation. Also, a member of the Firm’s Litigation Practice Group and Labor and Employment Practice Group, he represents individuals and businesses in a variety of matters including workers’ compensation, employment and business-related claims.

Pagliari is chair of MacDonald Illig’s Bankruptcy and Creditors’ Rights Practice Group. His practice is concentrated in the areas of corporate restructuring and bankruptcy, bankruptcy-related litigation and collection matters. He primarily represents corporate debtors, secured creditors, Chapter 7 and Chapter 11 trustees, and other entities involved in bankruptcy proceedings.

Presta is a trial lawyer and chair of the firm’s Litigation Department. She handles complex, multi-party litigation, including breach of contract matters, the defense of employment claims, and the defense of professional liability cases. She regularly appears in federal and state courts, before administrative agencies, and in arbitration tribunals.

Taft is a principal trial lawyer at MacDonald Illig whose practice is focused on employment litigation, including employment discrimination and wrongful discharge cases, and complex commercial litigation.

Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates, and peer reviews by practice area. Additionally, partner Jamie Schumacher and associates Lydia Caparosa, Brian Cressman, Lauren Holler, Michael Micsky, Emilie Swan Reinhardt and Ashley Solo have been selected

to the 2023 Pennsylvania Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.

Caparosa primarily focuses her practice on municipal law, representing municipalities and private individuals. She is an active member in the Erie County Bar Association and is a member of the Pennsylvania Bar Association’s Young Lawyers Council.

Cressman focuses his practice on counseling businesses and school districts. His practice tracks the day-to-day issues faced by businesses and school districts, including contract drafting, labor and employment matters, organizational management and succession issues, and dealing with supply chain disputes.

Holler, who is licensed in Pennsylvania and Ohio, focuses her practice on traditional labor law and employment law representing private and public employers.

Micsky works in the firm’s Real Estate & Banking, Business Transactions, Construction, Manufacturing, Transportation & Logistics, and Government Services Practice Groups. He has experience working with public and private clients of all sizes and types, both domestically and internationally.

Reinhardt focuses her practice on estate, trust, and elder care planning, estate administration, tax planning and real estate matters. She is a member of the Erie County Bar Association and a Board Member of Junior Achievement.

Schumacher is a trial lawyer appearing in both federal and state courts. She is a member of the firm’s Commercial/General Litigation Practice Group, Labor & Employment Practice Group, and Government Services Practice Group. Her experience includes a wide variety of litigation matters. Schumacher is the current chair of the Erie County Bar Association’s Civil Litigation Section and a member of the Erie County Bar Association’s Women’s Division and multiple committees.

Attorney Solo works in the Commercial/General Litigation and Insurance/Personal Injury Practice Groups. Her practice focuses on insurance defense, workers’ compensation, tax assessment and tax exemption litigation, environmental matters, and general litigation. She is a member of the Erie County Bar Association. She is also a board member of Game Changer Sports Ministry and a member of Penn State Behrend’s Political Science Advisory Board.

Lydia Caparosa

W. Patrick Delaney

Lauren Holler

Nicholas Pagliari

Emilie Swan Reinhardt Ashley Solo

Brian Cressman

John Draskovic

Michael Micsky

Lisa Smith Presta

Jamie Schumacher

Roger Taft

Untapped Talent: Hiring People with Disabilities

Eileen Anderson is the director of Government Relations at the Manufacturer & Business Association. Contact her at 412/805-5707 or eileenanderson@ mbausa.org.

Workforce continues to be a top concern for employers. MBA’s 2023 State Position Papers say “Pennsylvania can strengthen the work force by training youth, adults, and untapped populations who are held back by barriers… .” Untapped populations deserve a chance for multiple reasons, one of which is Pennsylvania’s demographic trends.

“Pennsylvania lost nearly 40,000 residents to other states from July 2021 to July 2022… . With 23,000 more deaths than births Pennsylvania’s total population loss ranks fourth highest in the nation… . The Pennsylvania Independent Fiscal Office (IFO) forecast in October 2021 that, due to outmigration and an aging population, the state will lose another 250,000 working-age residents by 2025… .” — Nathan Benefield and Andrew Holma, “People are fleeing Pennsylvania at an alarming rate,” February 1, 2023, Pittsburgh Post-Gazette.

Representatives from Giant Eagle and Achieva, who work with the disabled, shared hiring tips and success stories, during the Manufacturer & Business Association’s Untapped Talent briefing on June 8 at the MBA’s Pittsburgh Office in Cranberry Township, Joe Was, talent acquisition partner for Giant Eagle, described how he approaches hiring

and identifying roles the differently abled can fill within the company.

A question posed was “How do you find candidates?” Giant Eagle, who has hired from that cohort for years, is well known for their hiring practices. People come to them or are referred by organizations such as Achieva. Employers can find candidates through community organizations and job fairs.

The first step in hiring is the interview; candidates apply in person, by video or by phone. The goal is to determine what the candidate can do, what accommodation is needed, and where they fit into the stores, warehouses, kitchens and/or convenience stores such as GetGo.

According to Was, “Some on the autism spectrum are very good on detail so they make excellent order pickers for curbside service.”

“With appropriate training the differently-abled can do anything,” he said. “It is a matter of finding the right job, right person, and right skills. Once the right person is hired, they often stick with the job for years.” Was has been employed by Giant Eagle for 19 years.

John Kuhn is a lead employment specialist at Achieva. He identifies what the candidate is looking for and assesses them before they interview with the employer. He creates job matches for candidates in community-based employment.

Clarity in the employer’s job description is necessary. It can state physical requirements, mental capacity, ability to lift 50 pounds etc. Flexibility is key. Often the candidate may be capable to do three out of four requirements.

Kuhn gets to know the candidate and customizes a plan, figuring transportation, benefits, full or part-time hours etc.

Some workers may require a job coach and it is the worker’s responsibility to locate a coach. A coach assists the employee initially on the job. The PA Office of Vocational Rehabilitation, (OVR), Achieva and other agencies provide job coaches. The goal is always to get the person to work as independently as possible.

Kuhn then highlighted the success story of a young woman who transitioned from a sheltered workshop to a Giant Eagle GetGo, a great accomplishment.

Achieva is a nonprofit disability provider, not a charity, and charges no fees to the employee or employer for job coaching.

Kuhn identified a barrier faced by Achieva. Groups like his are dependent on government funding to pay staffers competitive salaries for their many services. They counsel, coach, provide transportation, and arrange daily activities. Staff shortages limits Achieva’s assistance to the disabled and employers.

Jesse Streeter, regional program relationship manger for the PA Treasury Department, spoke briefly about PA ABLE accounts, which are available for people with a qualifying disability that began before age 26. The accounts can be part of the employer’s benefits package. Oftentimes disabled employees work part-time hours for fear of losing benefits and state funds granted to those with disabilities. The ABLE program allows them to work full time and save up to $100,000 before benefits are cut.

To learn more, contact Eileen Anderson at 412/805-5707 or eileenanderson@mbausa.org.

The Best Ways for Employers to Mitigate Rising Energy Costs

Pennsylvania has been experiencing a steady increase in energy prices, which has led to higher costs for consumers. Employers can help mitigate rising energy costs by implementing these recommendations:

Invest in energy-efficient technology. By upgrading to energy-efficient equipment, businesses can significantly reduce their energy expenses over time. This is particularly important for energy-intensive industries such as manufacturing or data centers.

For example, the Database of State Incentives for Renewables & Efficiency (DSIRE): is a comprehensive online database, https://www.dsireusa.org/, which provides information on federal, state and local incentives for renewable energy and energy efficiency. Employers can search for relevant incentives and programs specific to their location and technology.

Implement energy conservation measures. Consider lighting upgrades, HVAC optimization, insulation and weatherization, power management and employee awareness.

Conduct regular energy audits to identify areas of inefficiency and prioritize energysaving opportunities:

• The Pennsylvania Small Business Advantage Grant Program, administered by the Pennsylvania DEP, provides free energy assessments to small businesses (up to 100 employees) in Pennsylvania.

• The Pennsylvania Sustainable Energy Fund (SEF) provides free energy audits to commercial and industrial businesses in Pennsylvania.

• Many utility companies in Pennsylvania also offer free energy audits or assessments to their commercial and industrial customers. Examples include Energy Smart Industrial program, the West Penn Power Sustainable Energy Fund, and the PECO Smart Ideas program.

Explore alternative energy sources. Look at solar power, wind power, biomass energy, geothermal energy, energy storage and Combined Heat and Power (CHP). Employers should consult with energy experts or renewable energy providers to determine the most suitable alternative energy options to reduce energy costs while aligning with their sustainability goals.

For more information on how to create a more cost-effective energy plan for your business, contact the MBA’s EnergyAdvisors team at 814/833-3200, 800/815-2660 or visit mbausa.org.

TWO-THIRDS OF SMALL BUSINESS OWNERS REDUCING ENERGY CONSUMPTION BY CUTTING COSTS

Energy usage can be a huge cost for businesses, which is why so many small business owners are looking to reduce it by adopting a rather holistic approach with all things having been considered and taken into account. According to a survey that was conducted by Smart Energy GB, two out of every three business owners are looking to reduce costs in order to simultaneously reduce how much energy they use.

With all of that having been said and now out of the way, it is important to note that 20 percent of businesses have stopped using paper to reduce the amount of energy that they consume. Twenty-nine percent have gone so far as to turn down the temperature on their heaters so that things can become more manageable than might have been the case otherwise.

Twenty-six percent have even stopped using heaters entirely, with 24 percent stating that they are lowering their thermostat settings because of the fact that this is the sort of thing that could potentially end up greatly reducing energy consumption in the long run.

Another tactic that is being used by small businesses is switching the type of lightbulbs that they are putting in. Thirty-two percent have started to use lower energy lightbulbs, and 24 percent said that they are being more strategic about how they utilize electric kettles and other similar kinds of appliances.

Managing their premises also seems to be a top priority for small businesses as far as energy use reduction is concerned. Nineteen percent of small business owners said that they are considering reducing the number of hours that they keep their offices open for.

RENEWABLE ENERGY SECTOR CREATING GREEN JOBS BOOM

The Renewable Energy and Jobs: Annual Review 2022 report shows that an increasing number of countries are creating jobs in the renewable energy sector. It says this jobs boom could increase worldwide employment in renewable energy to more than 38 million by 2030.

Solar photovoltaic (PV) has so far provided the biggest share of renewable energy jobs at 4.3 million, hydropower and biofuels with 2.4 million each, and wind power with 1.3 million. Other sectors such as geothermal, heat pumps and ocean energy make up the rest of the jobs growth.

Judy Rosatti

is an EnergyAdvisor for the MBA’s EnergyAdvisors program, a free service for MBA members only. Contact her at 814/833-3200, 800/815-2660 or jrosatti@mbausa.org.

Almost two-thirds of these jobs are in Asia, according to IRENA’s data. China is way ahead of the pack as the country with the most renewable jobs, making up 42 percent of the global total. It’s followed by the European Union and Brazil with 10 percent each, and the USA and India both at 7 percent.

WHO DOES THE PREGNANT WORKERS FAIRNESS ACT PROTECT?

The PWFA protects employees and applications of covered employers who have known limitations related to pregnancy, childbirth or other related medical conditions. Covered employers include private- and public-sector employers with at least 15 employees, including federal agencies, employment agencies and labor organizations.

What do employers need to do?

Since the Equal Employment Opportunity Commission (EEOC) will accept PWFA complaints on the day the law becomes effective, it’s vital to review and become familiar with the law. Employers will have to review their existing accommodation policies and revise them according to the PWFA’s requirements. Employers are encouraged to train all managers on the new changes to help prevent employees from filing with the EEOC.

HAVE AN HR QUESTION? GET ANSWERS TODAY!

The Manufacturer & Business Association (MBA) knows that urgent employment law issues can arise at a moment’s notice. As a member, you can call our certified HR specialists and labor and employment law attorney anytime, at no charge for counsel on a broad range of workplace-related issues including:

• Hiring and firing practices

Company policies

• Compensation and benefits

• Employment law

• Employment agreements

• Workers’ compensation

• Affirmative Action Plans

Unemployment compensation claims

• Employee handbook policies

• OSHA compliance

• Sexual harassment

• Family Medical Leave Act

• COBRA

Americans with Disabilities Act

Contact us today at 814/833-3200, 800/815-2660 or hrservices@mbausa.org!

Oh Baby! What Employers Need to Know About The Pregnant Workers Fairness Act

It’s time for employers to review their handbook again. The Pregnant Workers Fairness Act (PWFA), signed into law on Dec. 29, 2022, is in effect as of June 27, 2023. Under this law, employers with at least 15 employees must provide reasonable accommodations to workers with known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an “undue hardship.”

What exactly is the PWFA?

The PWFA amends the Americans with Disabilities Act (ADA) to require reasonable accommodations for a qualified individual’s limitations related to pregnancy, childbirth or related medical conditions. This law only applies to accommodations since existing laws the EEOC enforces make it illegal to terminate or otherwise discriminate against workers because of pregnancy, childbirth or related medical conditions. The PWFA does not replace federal, state or local laws that are more protective of workers affected by pregnancy, childbirth or related medical conditions. Currently, more than 30 states and localities have laws providing accommodations for pregnant workers. Covered employers cannot:

• Require an employee to accept an accommodation without a discussion between the worker and the employer about the accommodation.

• Deny a job or other employment opportunities to a qualified employee or applicant based on the person’s need for reasonable accommodation.

• Require an employee to take leave if another reasonable accommodation can be provided that would let the employee keep working.

For more information about PWFA, contact the MBA’s HR Legal Services Division at 814/833-3200, 800/815-2660 or visit mbausa.org.

Rachel Tserkovniak, SPHR

is an HR consultant and trainer at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or rtserkovniak@mbausa.org.

The Manufacturer & Business Association regularly hosts a variety of informational and networking opportunities for members in the region. To learn more about upcoming events, visit mbausa.org.

Business leaders listen intently to Erie County Executive Brenton Davis at the Eggs ‘n’ Issues briefing held in June. 

Erie County Executive Brenton Davis shares a progress update on the county with area business leaders at the MBA’s June Eggs ‘n’ Issues briefing. The event was held in the Forum at the MBA Conference Center in Erie. 

Congratulations to Port Erie Plastics’ Sean Connole and team members who were presented a 70th anniversary plaque by the Manufacturer & Business Association. To learn more about the Haborcreek-based company, visit porterie.com. 

MBA President and Chief Executive Officer Lori Joint (second from left) recently presented a 110th anniversary plaque to Steptoe & Johnson PLLC Attorney Marcia DePaula, a member of the firm’s Pittsburgh, Pennsylvania office, Christopher Passodelis Jr., office managing member of the firm’s Pittsburgh office, and Chief Executive Officer Christopher L. Slaughter. Steptoe & Johnson is a national law firm with core strengths in energy, labor & employment, litigation and transactional law. To learn more, visit steptoe-johnson.com

Jeremy Young, president and CEO of leading software and IT solutions company, Federal Resources Corporation, was recently presented a 25th anniversary plaque by the Manufacturer & Business Association. Based in Erie, Federal Resources has garnered recognition as one of Pennsylvania and the U.S.’s fastest-growing companies. For more information, visit fedresources.com. 