April 2015 Business Magazine

Page 1

A p r i l 2 0 1 5


I nnovationErie

GOT AN IDEA? Submit it to the InnovationErie Design Competition and turn your bright idea into a reality. Finalists walk away with over $30,000 in cash and professional service prizes.

Deadline: May 15, 2015

InnovationErie.net Sponsored in part by:


BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXVIII, NUMBER 4

A Customized Experience in Custom Building, Property Management and Real-Estate Sales / Page 12

APRIL 2015


110th ANNUAL EVENT Proudly Presents…

A CONVERSATION WITH

T. BOONE PICKENS Time Magazine’s 100 Most Influential People in the World • “Oracle of Oil” • American Iconoclast & Entrepreneur • Visionary Leader • Innovative Philanthropist

WEDNESDAY, MAY 20, 2015 Erie Insurance Arena 5:30 p.m. Member Cocktail Reception 7 p.m. Keynote Address Table Reservations: 814/833-3200 or 800/815-2660

Special Guest Moderator

JOHN HOFMEISTER

– Founder and CEO, Citizens for Affordable Energy – Former President of Shell Oil Company –

Special Thanks to our Sponsors


12

April 2015

3

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

7 / Health Matters

3 / Spotlight

How regular dental care can improve your overall health, and potentially reduce medical expenses and hospitalizations.

Rick Griffith, president and founder of Rick Griffith Properties in Erie, Pennsylvania, shares his thoughts on this key industry and the growth of his own successful real estate business.

RICHARD M. CELKO

9 / Legal Brief

Learn why many Erie County residents are turning to Maleno as their home provider of choice when it comes to a customized experience in construction, property management and real-estate sales.

J.W. ALBERSTADT JR.

EVENTS >

17 / On the Hill

22 / Training Graduates

Guest columnist Dave Reed explains the need for real solutions to rising property taxes in Pennsylvania.

See photos of the more than 200 graduates of the Association’s training programs in our special events section. 2015 Training Graduates

Events

The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 200 graduates of its professional development and computer training programs. Visit www.mbabizmag.com for complete coverage.

Blue Ocean Strategy Center

Certified Supervisory Skills Series

— Erie

Front row, from left: Kara Dipini, Medicor Associates; Kelly Hetz Kemrer, Fairview Evergreen Nurseries; Megan Scutella, VNA of Company; Jenny Sterner, Medicor Associates; Erie County; Kim Learn-Stewart, Warren Jessica Brennan, Erie Insurance; and Salamonsen, Erie’s Public Schools. Laura Back row, from left: Chris Putnam, American Molding & Technologies Inc.; Glenn Craig, Ridg-U-Rak; Jacob Gland, Eriez Manufacturing; Kenneth Benden, Electric Materials Company; Jason Lockwood, Arvite Technology; Nadine Van Tassel, Port Erie Plastics Walt Poff, Ameridrives International. and

HR Essential Certification Series — Erie

Front row, from left: Kayla McFreely, Networking Technologies, and Association HR specialist Robyn Hopper. Back row, from left: Katie Wolfram, Rabe Environmental; Amanda King, Reliance Well Services; and Nicole Huber, Ainsworth Pet Nutrition. Not pictured: Patricia Schenker, Armstrong Accuspec.

HR Essential Certification Series —

5

12 / Maleno

Mechanics’ Lien Law update: Why expanded safe harbor for lenders is good news for commercial borrowers.

HR Essential Certification Series

— Erie

Front row, from left: Amanda Chess, Thomas Erie, Inc.; Association HR specialist Robyn Hopper; and Eileen Polito, Erie Insurance Group.

Back row, from left: Bobbi Jo Morey, EPC Powder Manufacturing Inc.; Cindy Faulhaber, Great Lakes Automation Services Inc.; and Andrea Darnofall, Parker Hannifin Corp.

HR Essential Certification Series

— Erie

Certified Supervisory Skills Series

HR Essential Certification Series — Erie

From left: Kim Campbell, Erie Insurance Group and Robyn Hopper, Association HR specialist.

— Corry

From left: Justin Zinchini, Liberty Iron & Metal LLC; Tiffany McMillin, Ainsworth Pet Nutrition; Lori Nagy, Erie Insurance Group; Max Marcoline, Metrobrand Services LLC/Millcreek Coffee Company; and Association HR specialist Robyn Hopper.

Grove City

Front row, from left: Jessica Hammill, Rehrig Pacific Company; Elizabeth McDaniel, Armstrong-Indiana Behavioral and Developmental Health Program; and Shirley Wygant, Time Machine, Inc. Back row, from left: Krista Roberts and Jenel Tingley, Shorts Tool & Mfg. Inc.; Denise Wadlinger, Con Yeager Spice Co./CYS Transportation; Nicole Mocik, Office of Human Services, Inc.; and Joni Cummins, West Central Job Partnership Inc. Not pictured: Jaci D’Amico and Monica Beatty, Liberty Electronics, Inc.

Certified Supervisory Skills Series

Front row, from left: Amanda Higley and Valerie Bridgham, Corry Manufacturing; Jawdy, Bud Kressler and Wilbur Bush, Nick Parker Hannifin. Back row, from left: Jim Nichols, Corry Manufacturing; Jason Halfast, Snyder’s Napa Auto Sales; and Cody Hanson, Parker Hannifin.

Certified Supervisory Skills Series

— Butler Front row, from left: Brian Schuster and Kevin Castelli, Ellwood City Forge. Back row, from left: Anthony Podbielski and Wes Cunningham, Ellwood City Forge; Mark Columbus, North American Forgemasters; and Evan Fennell, Ellwood City Forge.

— Meadville

Front row, from left: Darlene Dangel, Greenleaf Corporation; Amanda Beish, Erie Homes for Children & Adults; Robert Newhard, Advanced Cast Products; and Jeff Butterworth, Greenleaf Corporation.

Back row, from left: Hayden Hawthorne, Deist Industries; Kim Doutt, Advanced Products; Dave Wheeler, Deist Industries; Cast Mark Heckman, Advanced Cast Products; Fronce, Greenleaf Corporation; Jamon Jason Davis, Layke Tool and Douglas Luikart, Greenleaf Corporation.

Certified Supervisory Skills Series

— Erie Front row, from left: Kellee Stempka, Armstrong Accuspec; Bridget Ward, Erie Water Works; Jessica Stefano and Dina Heile, IP Services, Inc.; Misty Yaple, Port Erie Plastics; Katrina Herring, IP Services, Inc.; Emily Kaminske, VNA of Erie County; and Randy Daniels, Molded Fiberglass Tray Co. Back row, from left: William Ferguson, Hoffman Industrial; Kevin Elliott, Ellwood Machine; Chad Ellsworth, Erie Water Ohio Works; Eric McCullough, Quest at Saint Vincent; Jeremy Ricketts, Erie Regional Airport Authority; Josh Rader and Jason Borst, McInnes Rolled Rings; Greg Pongratz, FMC Technologies; Joe Welch, Quest Diagnostics; and Stephen Ferguson, Polymer Molding.

Leadership for Team Leaders — Erie

DEPARTMENTS > Front row, from left: Gene Holmes, Ridg-U-Rak Inc.; Mike Andrzejewski, Industrial Sales & Mfg.; Netra Subodi and Christopher Zipperi, Maple Donuts; Tim Sandrock, AlturnaMats; Rocky Denny Jr. and Jamie Oswalt, Super Tire & Rubber Corp.; and Association Training specialist Lisa DeFilippo.

Back row, from left: Tyler Beshaw, AlturnaMats; Jeff Fair, Onex Inc.; Jen Lockard, Jenn Benn and Anthony Homansky, Maple Donuts; Michael Miaray, Ridg-U-Rak; and Doug Mullinax, Custom Engineering Co.

22 < www.mbabizmag.com < April 2015

Certified Supervisory Skills Series

— Meadville

Front row, from left: Kelly Carr, Channellock Inc.; Josh Shoaff, Advanced Cast Products; Casey Rickerson, Ellwood National Steel; and Ronni Jessup and Mike Redding, Channellock, Inc.

Certified Supervisory Skills Series — Greenville

Front row, from left: Jaymene Svirbly and Tina Schultz, PennTecQ Inc. Back row, from left: Nate McLaughlin, John Bruce Hashimoto and Judy Reed, PennTecQ VanSickle, Inc.

4 / Business Buzz 18 / HR Connection

Certified Supervisory Skills Series — Greenville

From left: Melanie Vosler, Jennifer Korbini, William Taylor and Kathleen Watt, PennTecQ Inc.

Certified Supervisory Skills Series — Greenville

From left: Sharon Schreiber, Joe Stewart, Curtis Stoyer and Jennifer Watt, PennTecQ Inc.

20 / HR Q&A 24 / People Buzz

April 2015 > www.mbabizmag.com > 23

Read on the Go! For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! April 2015 > www.mbabizmag.com > 1


Paul Sallie, Assistant Vice President Private Banking

Lauren Donatelli-Seyler, DO, FACOS Acute Care Surgeon

Our customers say it best... “We chose ERIEBANK because they were willing to work with us under some unusual circumstances — much more so than any other bank. The application process for both our mortgage and our construction loans were seamless. It required very little time and effort on our part, providing us a stress-free experience. Our Private Banker, Paul Sallie, has always been professional, courteous and respectful of our time and our needs. My schedule is very busy and he is always extremely accommodating. Paul makes my banking easy. Due to the wonderful service we have received, we have continued to expand our use of their services. We now have both our personal and business accounts with ERIEBANK.” — Lauren Donatelli-Seyler, DO, FACOS Private Banking Division 101 West 10th Street • Erie, PA 16501 Phone (814) 454-3444

www.ERIEBANK.net


SPOTLIGHT > As the U.S. economy continues to strengthen, economists and analysts suggest that the national real estate industry is expected to build momentum across the board. The Business Magazine recently asked Rick Griffith, president and founder of Rick Griffith Properties in Erie, Pennsylvania, to share his thoughts on this key industry and the growth of his own successful real estate business. Please share how you got into the real estate business and why. We entered the real estate business in the early 1980s after being in the electrical contracting business for 10 years. As an electrical subcontractor, we had very little control of our destiny. By owning the buildings, you control your own fate. You founded Rick Griffith Properties in 1982 and presently manage more than 1.7 million square feet of rental property in Erie County. Please give our readers a snapshot of some of the commercial and residential properties that this includes and your outlook for the local market in 2015. By geographic region: Summit. We own two properties for future development on Oliver Road, Five Guys, Planet Fitness. Upper Millcreek: We own Erie Institute of Technology at the mall, Howard Hanna office on Peach Street, Great Lakes Institute at 5100 Peach. West Millcreek: We own 4500 and 4504 West Ridge Road, the site of the old 84 Lumber company. West to east in the industrial corridor: We have 2755 West 17th, 1801 Pittsburgh Avenue, 1510, 959, 901, and 801 West 12th Street. We also have Toni and Guy at 10th and Peach and, naturally, the entire Lovell Place complex in midtown, which is more than 20 properties. We are upbeat on the Erie area real estate market. Manufacturing is recovering nicely. Erie downtown is being rediscovered. In 2003, Rick Griffith Properties was named Employer of the Year by the Economic Development Corporation of Erie County for your job creation efforts both with schools and the reuse of old industrial buildings. What do you consider to be your greatest real estate achievement and why? I am extremely proud of what our team has accomplished to date. Some of my employees have been with me over 40 years. But as for greatest achievement, hopefully, that is still coming. Erie is a vibrant community, and we look forward to helping it rebuild. In real estate, location is everything and many of your properties are located near busy intersections where you’ve used your signage to create meaningful interactions with passersby. What’s the reason for posting these often bold and inspiring statements? The signs are our way of interacting with the Erie people. The citizens of Erie have to become the cheerleaders of the area. In addition to running a successful business, you’ve given back to the community through the many boards and nonprofit organizations that you are involved in. Why is philanthropy so important to you? Erie has been exceptionally kind to me and my family. Giving back to the community of both my time and resources is my way of trying to repay that debt. I will never be able to fully repay what I owe to this great town. In 2014, you gave a property donation to the Roar on the Shore® charitable motorcycle rally to benefit St. Patrick’s Haven, a homeless shelter and ministry of the Sisters of St. Joseph of Northwestern Pennsylvania. What prompted you to donate such a generous gift? The Sisters of Saint Joseph, in fact all the groups of nuns, do so much for our region in a quiet way. Thirty-five years ago, one of the first properties we owned was on Peach Street between 4th and 5th. St Patrick’s Haven was right beside us. Now we are neighbors again in midtown. You help your neighbors whenever you can. It could be any one of us that could need a place to sleep on these cold winter nights. St Patrick’s Haven does not judge. They just open the doors to those that need it. What do you believe is the secret to your success? Rick Griffith Properties did not grow to where it is because of me. It is a team that works together always trying to give the tenants exactly what they need. It is the team and family that bring about the success. Is there anything you would like to add? Believe in Erie.

Contact: Karen Torres

VOL. X X VII, NO. 4 APRIL 2015 Manufacturer & Business Association Board of Governors

Joel Berdine John Cline Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Phil Katen Paul Kenny Jeff Plyler Sue Sutto Mike Weber

Editor in Chief

Ralph Pontillo rpontillo@mbausa.org

Executive Editor

Managing Editor & Senior Writer

Contributing Writers

John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Richard M. Celko J.W. Alberstadt Jr.

Feature Photography

Rob Frank R. Frank Photography 4320 Miller Avenue Erie, PA 16510 814/520-3985

Additional Photography

Casey Naylon Karen Torres

Advertising Sales

Patty Welther 814/833-3200 pwelther@mbausa.org

Design, Production Printing Concepts Inc. & Printing printcon@erie.net

ON THE COVER: Dominic Maleno, Natalie Washburn and Jarrod Maleno manage Maleno’s day-to-day operations, which today includes construction, property management and realestate sales. For full story, see page 12. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2015 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

April 2015 > www.mbabizmag.com > 3


Business Buzz ERIEZ ANNOUNCES 2014 MERWIN SALES AWARDS Eriez, recognized as world authority in separation technologies, recently announced that two companies have earned the 2014 Merwin Sales Award: Industrial Motion Technologies, Inc. of West Des Moines, Iowa, and Dempsco, Inc. of Dayton, Ohio. Eriez presents the award annually to honor the U.S. field sales office(s) that represented the company in the most outstanding way over the previous year by demonstrating exceptional sales performance and providing superb customer service and support. “Industrial Motion Technologies and Dempsco are the first co-winners since 2007,” said Charlie Ingram, Eriez vice president of Sales and Marketing. “For both of these deserving companies, winning this prestigious award is confirmation of the excellent way in which they represent Eriez and serve our mutual customers.” Established in 1993, the Merwin Award is named for Eriez’ founding family. As expressed on the plaque given to all winners, the Merwin Award is presented for outstanding contributions to the advancement of the ideals

and mission of Eriez Magnetics using the Golden Rule as a guide, exemplified by superior sales performance, providing customers high quality service and support, and striving to conduct affairs in an efficient, capable and friendly manner. For more information, visit www.eriez.com.

SPEKTRA MANUFACTURING MOVES TO NEW FACILITY Spektra Manufacturing, headquartered in Erie, Pennsylvania, recently announced the relocation of its manufacturing facility.

LOGISTICS PLUS NAMED 2014 EMPLOYER OF THE YEAR Logistics Plus Inc., a worldwide provider of transportation and logistics services, was recognized as the 2014 Employer of the Year by DevelopErie in its non-manufacturing category. The award, which was presented on January 22 at DevelopErie’s annual awards dinner at Erie’s Bayfront Convention Center, recognizes Logistics Plus as a leading employer of choice in northwestern Pennsylvania and within the highly competitive transportation and logistics industry.

“It’s an honor for Logistics Plus to be considered as the employer of the year and great to be According to the  in such special company as the other awards company, the  finalists. I’d also like to congratulate Viking relocation, which Plastics (Corry, Pa.) who won the employer of  was finalized in the year award in the manufacturing category,” February, moves Spektra’s headquarters to 2002  said Jim Berlin, founder and CEO of Logistics Evanston Avenue “to better serve its customers  Plus. “I lovehow our team has taken our and vendors.” business idea and created something special. It  Spektra specializes in a wide array of services, creates jobs, services to the community,  provides  including plastic and steel machining, and provides a home for people to come and prototyping and CNC.  work and live and raise a family. That’s pretty  much what this is all about, and so we’ll keep For more information, contact Spektra  doing what we do.” at 814/454-6879.    For more information, visit www.logisticsplus.net. 

















Ebco Park

2002

Evanston Avenue

West 26th Street

4 < www.mbabizmag.com < April 2015

Pisburgh Avenue

Lowell Ave.

West 23th Street

Evanston Avenue

Peninsula Drive

Filmore Ave.

West 21st Street


DEPARTMENTS > Contact: Karen Torres

ERIE INSURANCE CELEBRATES NEW TECHNICAL LEARNING CENTER Executives at Erie Insurance (NASDAQ: ERIE) recently held a ribbon-cutting ceremony for the company’s new state-of-the-art Technical Learning Center — a hands-on claims training facility that features 14 vehicle bays, a three-story model home made from 400 different building materials and other training aides. The 52,000-square-foot space will serve as a giant interactive classroom for employees and agents to get an up-close look at property damage sustained to vehicles, homes and businesses. The hands-on facility features a full-size house with an attic and basement, as well as sprinkler and building material workstations. It also includes vehicle equipment stations with lifts, frame repair stations, wheel alignment machines, and prep and paint booths. “Our claims service is the cornerstone of our business. While home and auto technology is always changing, our commitment to being ‘Above All in Service’ is constant,” said Erie Insurance’s Executive Vice President of Services Chip Dufala. “This training facility will enable employees to touch, feel, build and get a firsthand look at damage they will encounter in the field. That makes for better learning – and, ultimately, a better customer experience.”

The Technical Learning Center at Erie Insurance features 14 vehicle bays for employees to learn about damage on a wide range of vehicles.

President and Chief Executive Office Terrence Cavanaugh added, “This new facility represents the most ambitious education initiative in ERIE’s history, and I’m proud of that. It means we are offering our employees more opportunities to grow as individuals in the jobs that they have today, as well as preparing them for the skills they’ll need tomorrow.” The ribbon-cutting ceremony at the Technical Learning Center was part of a yearlong celebration at Erie Insurance, which celebrates its 90th anniversary in 2015. For more information, visit www.erieinsurance.com.

More than 400 different building materials were used in the construction of the three-story house within the Technical Learning Center at Erie Insurance. The facility will provide employees with opportunities to learn about the types of damage that can occur to homes.

Is Your Business in Compliance? OSHA regulations and ASME standards require frequent and periodic documented inspections of all lifting devices including chains, wire rope, synthetic slings, clamps, magnets and more. Dailey Supply will evaluate your equipment and help implement a plan to ensure on-going compliance and workplace safety.

Lifting & Material Handling Solutions Since 1975 2955 West 17th Street, Suite 5 Erie, PA 16505 814.833.7227 www.DaileySupply.com April 2015 > www.mbabizmag.com > 5


Comprehensive relocation and transportation solutions from anywhere to anywhere.    

814-456-5377 1-800-542-8668

Full-service and DIY moving solutions Professional office relocation Trade show transportation Logistics services

www.jhbennett-moving.com

Providing the Greater Erie Area with the finest, long lasting, coatings and finishes for over 20 years. Always following industry recommended preparation and application of the highest grade coatings by highly qualified mechanics. IndustrIAl

CommErCIAl

After Before

After

Before

Floors, walls, machines, pipes and safety line painting

Wall covering, painting and wood finishes

Call 814-796-6365 or visit jksfinishesinc.com to see more examples of our quality workmanship. • Residential interior/exterior painting

A+

• Wall covering & wall repairs

• Wood finishes

Where pretty good is no Darn Good! PA 061403

6 < www.mbabizmag.com < April 2015

• Full service spray shop

• Fully insured


EDITORIAL > By Richard M. Celko, DMD MBA

Health Matters

Make the Connection Between Your Oral Health, Physical Health Good overall health and well-being begins with good dental health. Many people do not realize the connection that the mouth and body have. There is an oral systemic connection, and the combination of good oral habits and a healthy mouth can lead to better health and wellness. Research demonstrates that regular dental care not only improves overall health, but it also can help to potentially reduce medical expenses and hospitalizations. The research demonstrated the importance of treating gum disease for people with one or more of the following conditions: Type 2 diabetes, cerebral vascular disease, coronary artery disease, and women who were pregnant. Keeping your mouth healthy and practicing preventive maintenance can improve overall health and keep medical costs down. Diabetes and Oral Health People with chronic conditions, such as Type 2 diabetes, need to be especially vigilant about keeping their mouth healthy. Diabetics, an estimated 12 million to 14 million people in the United States, are more susceptible to the development of oral infections and periodontal disease. Furthermore, oral infections tend to be more severe in diabetic patients than nondiabetic patients. Dental infections that are left untreated can even spread to other parts of the body and, in certain instances, can be life threatening. Diabetics, as a result of medications, may experience the sensation of a burning mouth or tongue, and also a diminished salivary flow, which could lead to a higher incidence of tooth decay. When you eat, the bacteria

in plaque transform the sugars and starches in food into acids. Each time acid is produced, it attacks the tooth enamel for about 20 minutes. Eventually, the enamel breaks down and the teeth start to decay. Additionally, diabetics who do not control their blood sugar levels tend to have increased oral health problems, particularly gingival (gum) recession and also take longer to heal from certain procedures such as extractions or other dentoalveolar surgery. Heart Disease and Oral Health Cardiovascular disease is the most commonly found systemic condition in people with periodontitis. It has been shown that approximately 90 percent of patients with heart disease also have some form of periodontitis. By comparison, only 60 percent of people without heart disease have periodontitis. Risk factors such as smoking, unhealthy diet, and lack of exercise are the same for both conditions. Reducing or eliminating such risk factors has shown positive results including an increase in vital capacity of the lungs as well as a marked decrease in blood pressure levels. Research also has shown that heart valves, damaged by rheumatic fever, are more susceptible to bacterial infection from bloodborne bacteria. In addition, it has been suggested that eliminating active infection from the oral cavity before surgical procedures, especially valvular or prosthetic surgery, may help prevent postoperative infection. The nature and direction of the association is unclear because periodontitis and cardiovascular disease share similar risk factors.

low-birth-weight babies have more peridontal disease or more advanced stages of periodontal disease than mothers with normal-sized, fullterm babies, even after adjustment for confounding factors such as age, smoking, drug use, nutrition and systemic disease. It seems that a combination of high levels of periodontal pathogens and a low maternal IgG antibody response to periodontal bacteria during pregnancy is associated with an increased risk of preterm delivery. Conversely, patients who have undergone periodontal services have had less hospital and medical costs. Therefore, prevention is the key component. By maintaining good oral health-care habits, overall health and well-being is improved. For more information about UPMC Health Plan’s dental coverage, visit https://www.upmchealthplan.com/ employers/learn/plans-and-services/ medical-dental-vision.aspx.

Richard M. Celko is regional dental director for UPMC Health Plan, which is part of the UPMC Insurance Services Division. The UPMC Insurance Services Division offers a full range of insurance programs and products and also includes: UPMC WorkPartners, UPMC for Life, UPMC for You, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions, and Askesis Development Group.

Pregnancy and Oral Health Research has shown that mothers with a history of preterm delivery and April 2015 > www.mbabizmag.com > 7


IMPORTANT MESSAGE: If your electric supply contract is expiring — or if you’re still buying from your utility company, we’re here to help you shop for a new supplier. Many Association members recently received letters from their current electric supplier informing them that their contract is about to terminate and recommending that they switch to a “specific” supplier. Caution! If you’re not getting a quote from the MBA’s expanded list of energy suppliers, you may not be getting the best plan or the lowest rates!

Expanded Suppliers

The more energy suppliers competing for your business, the better! Our expanded supplier network does just that ― bringing even more energy providers to the bidding process than ever before. We save you the time and aggravation by negotiating with the industry’s leading energy suppliers on your behalf. We’ll provide an apples-to-apples price comparison of the best rates (fixed and variable products) in an easy-to-understand format to help you select the best energy option for maximum savings.

Free Cost Analysis

Contact Chuck Jenkins at 814/833-3200, 800/815-2660 or cjenkins@mbausa.org.

Employers’ Energy Alliance of Pennsylvania, Inc.


Legal Brief

EDITORIAL > By J.W. Alberstadt Jr.

Mechanics’ Lien Law Update: Expanded Safe Harbor for Lenders Is Good News for Commercial Borrowers Your business is growing, and you are running out of space. You prudently save up about a quarter of the cost of expanding your facilities. Confident that your bank will lend you the rest, you get the project rolling, hire the general contractor, and break ground. A few months later, your equity contribution is almost gone, so you sit down with the bank to formalize your construction loan. Up until last September, you would have been in big trouble. Assuming that your lender wants a mortgage on your facilities, the specter of the mechanics’ lien would have reared its ugly head, and your financing would have been in jeopardy. What is the Mechanics’ Lien Law? Pennsylvania’s Mechanics’ Lien Law provides contractors, their subcontractors and suppliers with the right to file a lien against your real property for unpaid construction costs. Subcontractors and suppliers are entitled to the lien even if you have paid the general contractor. The right to file the lien even extends to subcontractors and suppliers to a subcontractor. Prior to 2006, the lien could be avoided if you and your general contractor filed a mechanics’ lien waiver before construction began. Such waivers are now only available for residential construction. In most cases, the lien can be filed for up to six months after the completion of construction, yet its effectiveness relates back to the day work began, thereby jumping over the lien of your construction mortgage — a risk most lenders are unwilling to take. Safe Harbor The 2006 amendments to the Mechanics’ Lien Law, while taking away the ability to file prospective lien waivers in commercial situations, did create a safe harbor for construction

lenders. The safe harbor subordinates after-filed mechanics’ lien claims to the lien of open-end mortgages “the proceeds of which are used to pay all or part of the cost of completing erection, construction, alteration or repair of the mortgaged premises.” The safe harbor was effective even if the mortgage was recorded after construction began. However, the Pennsylvania courts construed this provision very narrowly, basically limiting its applicability to situations where 100 percent of the loan proceeds were expended on hard construction costs. Banks, borrowers and title insurance companies worked hard to come up with creative responses to this interpretation, but none were really satisfactory to address the issue. In response, effective September 7, 2014, the Pennsylvania Legislature adopted Act 117 of 2014, which amended the Mechanics’ Lien Law in two major respects. First, Act 117 makes the safe harbor applicable where 60 percent or more of the loan proceeds are spent on costs of construction. So, it is now possible to include land acquisition costs or even operating capital funds under the umbrella of a single mortgage along with your construction costs. Second, Act 117 greatly expanded the definition of “costs of construction” to include many types of expenses beyond hard costs, including reimbursements, taxes, insurance, bonds, inspections, testing, surveys, permits, professional fees, leasing commissions, tenant improvements, payment of prior liens and mortgages, finance costs, closing fees, lender fees, and title insurance fees.

cautiously to fully embrace the expanded safe harbor, it is likely that you will now be able to obtain your financing even though you began construction before your mortgage was recorded. However, it is important to note that there is no similar protection for you as an owner. In order to avoid mechanic’s lien claims, it is critical for the owner to monitor the application of each payment to the general contractor to make certain that it is, in fact, being used to pay the subcontractors and suppliers. This is best done by requiring the general contractor to obtain partial lien releases from the subcontractors and suppliers at each draw, confirming that they have been paid in full for all work performed and/ or materials supplied up to the end of the period covered by the disbursement. Otherwise, although your lender will be protected, you will still be at risk. For more information about the Mechanics’ Lien Law update, contact J.W. Alberstadt Jr. at MacDonald, Illig, Jones & Britton, LLP at 814/870-7750 or jalberstadt@mijb.com. J.W. Alberstadt Jr. is a partner with MacDonald Illig. He is co-chair of the firm’s real estate practice group and concentrates his practice in the areas of real estate, commercial and economic development, conventional and tax-exempt financing, and estate planning and administration.

Proceeding With Caution Although the title industry is proceeding April 2015 > www.mbabizmag.com > 9


June Business Magazine The Future of Finance What is the future of finance? Find out the new services and offerings in today’s competitive financial industry. If you are a bank, finance or accounting firm that is enhancing its programs to meet the increasing needs of today’s employers, here is your chance to inform the Manufacturer & Business Association’s more than 4,500 member companies. Advertise now in June’s Future of Finance issue and explain what makes your programs stand out!

ADVERTISING OPTIONS

Option 4:

(1) Business Card Size Ad $210

Option 2:

(1) Half-Page Ad

Option 1:

(1) Full-Page Ad

$790

Option 3:

(1) Quarter-Page Ad $525

$1,400

ADVERTISING ORDER INFORMATION Ad Space Deadline: TUESDAY, June 2, 2015 Ad Materials Deadline: TUESDAY, June 9, 2015 Advertising Contact: Patty Welther • pwelther@mbausa.org • 814/833-3200 • 800/815-2660


sales maker People buy more from people they know.

Advertise your company’s products, services, skills, resources, capabilities and competitive pricing to more than 15,000 decision makers who read the Business Magazine every month! Contact Patty Welther today at 800/8152660, 814/833-3200 or pwelther@mbausa.org.

MBA Conference Center - uploaded; please place

You need it. You want it. We’ve got it. You’ll love the choice of flexible meeting rooms all equipped with WiFi, flat-screen TVs and laptops. And our onsite business center with phone, fax, copier and computer, plus complimentary breakfast, beverages and afternoon snacks, maximizes convenience for you and your guests!

So relax, you’ve come to the right place. Visit www.mbausa.org or call 814/833-3200 or 800/815-2660 today. April 2015 > www.mbabizmag.com > 11


Dominic Maleno, Natalie Washburn and Jarrod Maleno represent their family’s full-service real estate team in the areas of construction, property management and real-estate sales.

According to Dominic Maleno of Maleno Builders, more and more people are looking for quality vs. quantity when it comes to custom-built homes.

A Customized Experience in Custom Building, Property Management and Real-Estate Sales Everyone has a vision for their dream home. For some, this may be a sprawling 6,000-square-foot, two-story home with cathedral ceilings and a stately brick fireplace. For others, it may be a smaller scale 1,800-square-foot traditional patio home or luxurious condominium with contemporary features.

Maleno is a Realtor, property maintenance manager and operator of Maleno Painting Company.

Finding the right home can be as challenging as the buyer is unique. That’s why, for nearly 40 years, clients have been turning to Maleno, headquartered in Erie, Pennsylvania as their home provider of choice. The family owned and operated company, started by John and Lynn Maleno in 1976, today offers a full-service real-estate team in all areas of construction, land development, property management and real-estate sales.

Whether you’re building on your lot or theirs, Maleno has built a reputation for its quality craftsmanship and value. Maleno and staff pride themselves on offering an unparalleled customer service experience.

This team of experts, including some of the Maleno’s children, is focused on providing clients the best possible service when they are making one of the biggest investments of their life — their home. “We want people to know that working with us is an experience that’s customized to them whether it’s renting, building, buying or selling,” explains Maleno Broker and Property Manager Natalie Washburn, who recently was honored as 2014 Realtor of the Year by the Greater Erie Board of Realtors. Washburn is responsible for the day-to-day operations and staff of the real estate and leasing offices. Her brother Dominic Maleno is head of Maleno Builders and is a certified NAHB Green Builder, providing customers with quality built energy efficient homes. Jarrod 12 < www.mbabizmag.com < April 2015

“We take pride in serving the community and our commitment to quality is shared by all who work within the company,” explains Dominic Maleno.

Custom-Built Homes

“Sometimes the perception of custom building is based solely on square footage, we have found that custom building is possible whether the customer wants a large or a small home,” says Dominic Maleno. “Today’s buyer wants their home to be more customized.” “It’s not so much quantity, they want quality,” he continues. “They want their place to be individualized and personalized within an affordable floor plan.” That’s where Maleno Builders comes in. From the start of each project, Maleno’s building team sits down with each client to understand his or her needs and wants. They help answer questions like “Can I afford this?”, “Aren’t there too many selections?” or “Will my home be completed on time?” Maleno provides a workbook that navigates the customer through the building process and includes a list of the top 10 questions to ask the builder. Choosing and customizing from a wide array of floor plans, the


Maleno’s in-house designer then helps clients understand different finishes and colors to customize their home in the company’s Design Center. “With social media and HGTV, buyers are more educated and have a better vision of what they want,” says Dominic Maleno, who has more than 20 years of building experience. “They just need us to help them tie all those different things together to make it flow through the house whether it would be a craftsman or rustic look, contemporary or traditional.” Randy Galbreath, owner of La Grand Elite Limousine and LGE Coachworks in North East, says he and his wife Carrie chose Maleno Builders for the construction of their 4,000-square-foot home because of the company’s reputation for detail work and quality. Galbreath describes Maleno’s professionalism as “phenomenal.” Not only were the couple’s questions answered right off the bat, but it was a “seamless, no-stress situation” from the beginning of construction in April until the couple moved in the day after Thanksgiving this past November.

Maleno develops, builds and sells maintenance-free patio homes located in Countryside, as well as luxury estate homes.

According to Galbreath, the couple spent over a year creating a folder of designs that they wanted to incorporate, and Maleno Builders was able to deliver. The home has custom touches throughout and a Great Room that features 19-foot ceilings and a stunning corner fireplace with stone from floor to ceiling. Galbreath says Maleno provided both quality and value in their home, as well as in their customer service. “They’re going to build you exactly what you want. You’re going to get what you pay for,” Galbreath explains. “And if you ever see anything that needs attention, they address it right away. The communication was great. They would meet with you every week onsite, or as often as you wanted to meet.” Customer service can be a difference maker in the competitive construction business, and Maleno is focused on providing a high level of satisfaction. Dominic, Natalie and Jarrod visit customers 30 days after they move in and then a year later to take care of any warranty requests. Maleno Builders offers a two-year limited warranty and 10-year-structural warranty on each of their homes. “Once we close on a home, our relationship is just really getting started,” explains Dominic Maleno.

Buy, Lease or Sell

As a full-service firm, Maleno Real Estate can help clients in all areas of real estate. Although the team focuses on new construction and selling Maleno Builders homes, Maleno’s agents have the ability to help customers buy and sell, residential or commercial property. “We are a one-stop shop with a team ready to provide excellent service — whether it is helping them to customize a new home with Maleno Builders or possibly finding an existing home that’s currently on the market,” says Washburn. Currently, Maleno Builders is building in Evergreen Farms (Fairview), Countryside (Summit), and southwest Millcreek Township. “Similar to Dominic, my focus in real estate has always been service, being that purchasing real estate is the single biggest investment that someone is probably going to make in their lifetime,” explains Washburn. “We want to make sure that it’s an enjoyable experience. We also want that person to feel good about who they worked with and with the sales process.”

Washburn was even named 2014 Realtor of the Year by the Greater Erie Board of Realtors (GEBOR) for her dedication to the industry. She has served on the GEBOR board of directors for six consecutive years and was president in 2011. “It was an honor because there are a lot of Realtors in the Erie area who have been in the industry for a long time and have done a lot to promote and grow the real estate industry,” she states. “I love what I do and I feel blessed to be able to help others find their first or next home. It’s an exciting and rewarding process.” Maleno owns and manages more than 520 rental properties — spacious townhomes, newly built garden-style apartments and luxury single-floor living throughout Erie. Their rental communities offer onsite leasing offices, state-of-the-art fitness rooms, swimming pools and clubhouses for their residents to utilize. Just as with any Maleno-built home, renters can expect personalized service from loyalty programs, community newsletters, holiday parties, and much more. Jarrod Maleno, the property maintenance manager, explains that residents have access to 24-hour emergency maintenance service and can expect maintenance requests to be completed within 24 to 48 hours.

Giving Back

The Maleno family recognizes the importance of giving back to the community. In that spirit of giving, the Maleno Family-to-Family fund was established in 2009 to support building and renovation projects for Erie families and neighborhoods in need. Inspired by their involvement in ABC’s “Extreme Makeover: Home Edition,” the goal of the fund — now a fund of the Erie Community Foundation — is to help four to five families per year with housing, renovations, remodels or rebuilding. Applicants are screened and funds are distributed through the St. Martin Center in Erie. Most recently, the Maleno Family-to-Family fund helped a family on West 18th Street in Erie’s Little Italy with a new roof, gutters, downspouts and windows. “We understand that there are many families with housing needs,” says Washburn. “We want to give back to our community for what they have given to us in supporting our business over the years.” For more information, visit www.malenodevelopment.com or call 814/833-6516.

The Village on Pacific features single-floor living apartments with lofts and full basements.

April 2015 > www.mbabizmag.com > 13


BE A PART OF HISTORY

LO VE LL

AT LOVELL PLACE

COMMERCIAL OFFICE SPACE AVAILABLE FOR LEASE Lovell Place is a 347,000 square foot mixed-use facility that spans a city block from 13th to 14th between French and Holland Streets. Constructed in the early 1900s, it was the former home of Lovell Manufacturing Co, which made wringer washing machines. State-of-the-Art Commercial Office space is available for lease featuring high ceilings, open floor plans, new windows, security system, and ample free parking. Owner will build to suit.

ALTAIR

REAL ESTATE SERVICES

Schedule a Tour Today! Brian Sechrist Rachel McCreary Altair Real Estate Services 814-833-2741 info@altairre.com

Advanced Manufacturing Apprentice Program Does your business have a new product or technology idea that could jump-start growth? NWIRC can help! Gain access to Advanced Manufacturing and STEM students who will accelerate your technology development or implementation project. By accessing our network of regional universities, colleges and technical schools, NWIRC will coordinate the apprentice identification, screening and selection process. Manufacturers gain: • Between 150 and 650 apprentice hours per semester by an Associate, Baccalaureate or Graduate student or recent graduate • Apprentices available for Fall, Spring and/or Summer semesters • Mini-grants providing financial assistance to off-set a portion of apprentice’s wages are available on a limited and competitive basis

Michael Griffith, having over 10 years of technical sales and product development experience, served in the U.S. Marine Corps, earned a B.S. in Chemical Engineering and an MBA, is Research Triangle Institute (RTI) certified in Innovation Engineering services.

Contact us today for more information...

(814) 450-9752

mgriffith@nwirc.org www.nwirc.org

Half-page Ad-MBA.indd 1 14 <NWIRC www.mbabizmag.com < April 2015

11/7/14 11:46 AM


Company PROFILE B&T Janitorial Services 612 South Kendall Avenue Bradford, PA 16701

B&T Janitorial Services

PHONE: 814/368-7199 800/249-5656 WEBSITE: www.btjanitorialservices.com

“We don’t cut corners, we clean them” has been the motto at B&T Janitorial Services since its inception in 1987. Located in Bradford, Pennsylvania, B&T is a family owned cleaning company that prides itself on quality. “Our philosophy demands that we put the needs of our clients first,” explains President Susan Teribery. “We take the time to listen to your needs and concerns. We are small enough to know the value of each client and large enough to offer total customer service. Being a family owned business, we know the importance of your business and how it should look its best at all times.”

B&T also provides a wide variety of cleaning services for its customers to choose from to set up their own custom cleaning program. Industries served include, but are not limited to: banks, offices, manufacturing, construction sites, medical offices, retail outlets, warehouses, churches and schools. B&T offers quality, dependable service at a reasonable price. Bonded and insured, B&T’s experienced, courteous, professional cleaning crews provide top-of-the-line service. “We are not a typical ‘cookie cutter’ office cleaning service,” says Teribery.

To ensure that B&T’s cleaning is top notch, the company has a full-time quality control manager. This quality control manager takes the hassle out of customers’ hands by fully managing each and every account. Customers no longer have to deal with cleaning complaints, employee turnover and call-offs. B&T Janitorial Services and its team of more than 170 employees service customers within a 150-mile radius of its Bradford, Pennsylvania headquarters. The company runs regular inspections on all accounts through the use of an iPad and its new quality control management system.

WORKERS’ COMPENSATION AS A SOLE REMEDY IN PA?

MAYBE NOT

A recent PA Supreme Court ruling may have opened Pandora's Box. The ruling goes far beyond workers’ compensation. Policyholders would do well to have a coverage analysis of current and past insurance policies, including your umbrella policy. We are on the forefront of Ongoing and Emerging Liability issues. Give us a call to talk about this “new development” or a general discussion on “emerging liabilities.”

“The Bloomstines” Commercial, Industrial & Institutional Property, Liability & Workers’ Compensation Insurance Agents Lloyd’s London Correspondents and Correspondent Brokers Worldwide 123 West 9th Street Erie, PA 16501 814-452-3200 Fax 814-454-5598 www.imcerie.com e-mail: john.bloomstine@imcerie.com

April 2015 > www.mbabizmag.com > 15


We Get You There!

A Specialized Approach to Reaching Your Realty, Development and Property Management Destinations. or real estate transaction, there’s a “ Ingoalevery... abusiness destination, and our job is to get our client there in a timely and cost-effective manner. ”

– Greg Rubino

Under the Passport Companies umbrella, we offer the expertise of three distinct divisions creating an integrated approach to real estate acquisition, development and management. Whether it’s a multimillion-dollar real estate deal including property development and management or a single commercial property purchase, having the right people in place ensures that your ideas and visions are realized. Our knowledge and experience will see that your ultimate destination is reached. For more information about the Passport Group of companies, please visit our new website ... www.1passport.com.

Commercial and investment real estate Our staff’s experience in property brokerage is unparalleled and runs the gamut from small “mom and pop” retail stores to 100,000+-square-foot tenants.

Zoning, approvals and other issues related to the development of property Providing advisory services to higher education, healthcare and other real estate industry segments, such as shopping centers and industrial developments.

Management of commercial and investment properties We balance the needs of the bottom line and establish a long-term strategic vision of property value maximization.

Have a real estate question? Give us a call!

Passport Realty Group • 240 West 11th Street • Suite B-050 • Erie, PA 16501 • (814)

454-1800


OntheHill

DEPARTMENTS > Contact: Lori Joint

Rising Property Taxes in Pennsylvania is Real Issue, Requires Real Solution Serving his seventh term in the Pennsylvania General Assembly, Dave Reed represents the 62nd Legislative District. In November 2014, Reed was elected by his colleagues to be the Majority Leader of the 199th legislative session of the General Assembly, a position he assumed on December 1, 2014. Contact him at 724/465-0220 or dreed@pahousegop.com.

Welcome to Pennsylvania, a place where residents like to keep decisions local. With that said, let’s start off with the bottom line. Local property taxes have skyrocketed, mainly due to decisions made at the local level, not decisions we made in Harrisburg. It is the locally elected school boards who decide what to spend and what salaries and benefits to pay their teachers and employees, not the state. Unfortunately, the property tax issue has been around for decades, and there is still no consensus for a solution — the state is just too diverse and the issue too complex. The seemingly annual spike in these locally imposed taxes has begun to overburden many taxpayers. We understand high property taxes are affecting our businesses — both large and small. According to the Tax Foundation’s 2014 Business Tax Climate Index, while Pennsylvania ranked a middle-of-the-road 24th overall, the state came in 43rd in the nation in the property tax category. It is estimated, this fiscal year, school property taxes will generate about $14 billion. Add that to the state’s record education spending of $10.5 billion, and about $2 billion from federal and other dollars, and we have an education enterprise in our state spending $26 billion. That is all tax dollars. This session, we plan to work with the Senate and governor to reform one of the main cost-drivers constantly cited for pushing up the cost of property taxes: public pensions. The state and school payments to fund the state and school public pensions systems will increase this year another $600 million in the state budget, and we are already paying $3.2 billion. Unless something is done, the payments will rise to more than $6 billion in about three years. Those numbers are suffocating our budget and ability to pay for priorities such as more direct classroom funding. I am working with members of the House Republican Caucus to address the continuing increase in school district property taxes. The first thing everyone needs to understand is that

there is no free money. To offset school property taxes, money needs to be generated from somewhere, and it is a significant amount. As we develop potential solutions, the best interests of all taxpayers need to be considered, and we don’t want to overburden some of the taxpayers we are intended to help. As proposals continue to emerge, be assured, we will look at them all. Most proposals now seem to share some elements: Dealing with the property tax problem at the state level, and the other at the local level. To raise the revenues at the state level, proposals range from either modest increases in the Personal Income Tax (PIT), or Sales and Use Tax (SUT), or a combination of both. The idea is to increase the state level of funding and, in return, school districts would reduce, dollar-for-dollar, their school property taxes. To help school districts raise the needed revenues locally, proposals empower them, through a dollar-for-dollar shift away from property tax toward other local taxes, including the Earned Income Tax, mercantile tax and the business privilege tax. We understand many small businesses lease their property or do not have any property tax liability, which means that they would only be subject to new, higher taxes, and that is an issue members will work to address. The members of our Caucus, the House Republicans, are engaged and working together and getting a better understanding of the issues their colleagues are facing locally. We intend to hit the issue by dealing with cost-drivers, as well, taking it head on. While no property tax proposal is perfect for every region or every sector, we will continue to work toward reaching a consensus to deal with the rising property taxes in the state. We know it is a problem, and we know it is a concern. April 2015 > www.mbabizmag.com > 17


HR Connection CONSTRUCTION INDUSTRY EXPECTED TO INCREASE HIRING IN 2015 Construction demand has grown steadily the past few years and, by most accounts, that trend will continue through 2015. So to meet the demand, firms across the country are prepared to bring in the necessary help — or at least as much help as there is to be had. The Associated General Contractors of America recently released its 2015 Construction Hiring and Business Outlook, in which it surveyed more than 900 firms throughout the United States. The results showed that “an overwhelming majority of firms plan to expand their payrolls in 2015,” according to the report.

added staff. Additionally, in 2014, 18 percent of firms reduced staff, while only 7 percent expect to reduce headcounts in 2015. Despite that, a majority of contractors remain optimistic, particularly in terms of demand in private sector construction. The retail/warehouse/ lodging segment saw the most optimism in the survey, with other nonresidential construction prospects, such as private office and the hospital sector, seeing “net positive” readings of 20 percent or more.

OSHA TO HOST SECOND ANNUAL FALL SAFETY STAND-DOWN EVENT Falls are the leading cause of death in the construction industry, as hundreds Eighty percent of firms reported that of workers die each year and thousands they plan to expand their payrolls more suffer catastrophic, debilitating this year, which would be a relatively injuries. Yet, lack of proper fall significant bump from last year, when protection Austin_MBAAds2012v2_Layout 1 6/13/12 8:55 AM Page 1 remains the most frequently only 57 percent of firms reported they

cited violation by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA). To recognize this often fatal hazard, tens of thousands of employers and more than a million workers across the country joined OSHA in 2014 for a weeklong Fall Safety Stand-Down, the largest occupational safety event ever held. OSHA hopes to triple these numbers during this year’s Fall Safety Stand-Down. Building on last year’s widespread participation, OSHA has made this year’s Stand-Down, a two-week event. From May 4-15, employers and workers will pause during their workday for topic talks, demonstrations and training on how to use safety harnesses, guard rails and other means to protect workers from falls. For more information, visit www.osha.gov/StopFallsStandDown.

The Austin Difference

HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE

Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com

18 < www.mbabizmag.com < April 2015

Every day E.E. Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”. It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you. It’s the Austin Difference.


DEPARTMENTS > Contact: Stacey Bruce

Education, Periodic Dependent Eligibility Audits Can Help Save Time, Money, Legal Hassles One of the key components of good plan administration is the tracking of changes in eligibility not only for your employees but for their dependents as well. Imagine an employee who inadvertently or intentionally fails to report a change in status of his/her spouse to his/her ex-spouse. An ex-spouse is no longer eligible for the plan.

certain that they are aware of the life events happening in the lives of their employees. But as employment grows or as management changes occur, employers with as few as 15 or 20 employees may not be as involved in their employees’ personal affairs. Today, dependent eligibility audits, in which companies demand proof that spouses and children qualify for medical benefits, are swiftly becoming both fashionable and financially rewarding for companies frantic to curb the runaway costs of health coverage. The goal: to cull the benefit rolls of ineligibles, which could include ex-spouses, stepchildren who live elsewhere, or 29-year-old college grads still being claimed as dependents.

The employee may eventually report this change when they want to add a new spouse, but then what? Who is responsible for the payments that have occurred both on the premium side and the claim side? Perhaps a deceased or ex-spouse is still listed as a beneficiary. This could cause a variety of issues if not rectified. Very small employers may think of their employees as family and are

Defining to your employees what an eligible dependent is and conducting periodic dependent eligibility audits may help save time, money and, in some cases, legal hassles. For more information about tracking changes in dependent eligibility status, contact Patty Smith at 814/833-3200, 800/815-2660 or psmith@mbausa.org.

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.

As a business owner, you know it is important to have someone you can turn to for trusted advice when you need it most. See what the credit union difference can do for your bottom line. Nathan Crouch,

SERVICES Commercial Mortgage Loans Equipment Loans

Term Loans

Lines of Credit

Commercial Vehicle Loans

Construction Loans

Property Loans

Commercial Lender

(814) 825-2436 Ext. 1051 ncrouch@eriefcu.org

www.eriefcu.org Loans subject to credit approval. Membership eligibility required.

Chamver Ad 1214v2.indd 1

12/10/14 3:47 PM

April 2015 > www.mbabizmag.com > 19


HR Q&A IS OSHA PROHIBITING THE USE OF SLIDEGUARDS AS EMPLOYEE PROTECTION DURING PERFORMANCE OF ROOFING ACTIVITIES IN RESIDENTIAL CONSTRUCTION? Slideguards cannot simply be used in lieu of conventional fall protection methods under 1926.501(b)(13). However, slideguards may be used as part of a written, site-specific fall protection plan that meets the requirements of 1926.502(k) if the employer can demonstrate that the use of conventional fall protection (that is, guardrail, safety net or personal fall arrest systems) would be infeasible or create greater hazards. WHAT ARE THE TRAINING REQUIREMENTS FOR THE USE OF FALL PROTECTION SYSTEMS? In accordance with 29 CFR 1926.503, the employer must ensure

20 < www.mbabizmag.com < April 2015

that each employee who might be exposed to fall hazards has been trained by a competent person to recognize the hazards of falling and in the procedures to be followed in order to minimize those hazards. In addition, the employer must verify the training of each employee by preparing a written certification record that contains the name/ identity of the employee trained, the date(s) of training, and the signature of the employer or the person who conducted the training. WHAT IS AN EMPLOYER’S RESPONSIBILITY WHEN DEALING WITH COMMUNICABLE DISEASE IN THE WORKPLACE? An employer’s responsibility is to provide a healthy, safe working environment for all of its employees, even if there are no current standards

governing the work area or the industry. The General Duty Clause of the Occupational Safety and Health Act (OSHA) (Section 5(a)(1)) addresses this issue. It entitles an employee to “a place of employment which is free from recognized hazards that cause or are likely to cause death or serious physical harm.” Therefore, when an employer has an employee with a communicable disease, it should make every effort to reduce the possibility of the disease spreading. A good way to accomplish this is by training and educating the work force. The employer may also implement a policy that requires an employee to inform the employer when the employee poses a direct threat to the safety of other employees.


DEPARTMENTS > Contact: Stacey Bruce

Is the Open Workspace Concept Right For Your Business? According to a recent article on HRMorning.com, more companies are embracing the open workspace concept, including private firms like Google and GlaxoSmithKline, as well as government agencies like the General Services Administration. In theory, the idea makes sense: No high cubicle walls means more collaboration, more interaction with co-workers, potentially faster decisionmaking and a more physically active work force. But, in reality, open offices can hurt companies as much as they help, according to design firm Gensler. In a recent study, the company noted that a collaboration-friendly environment with no cubicle walls “proved ineffective if the ability to focus was not also considered.” Why It Matters to HR What’s all this got to do with HR?

After all, with hirings, firings and ever-changing employment law, what does it matter to you what your office looks like? Employees in open-office setups get sick 62 percent more often compared to their colleagues in cubicles, according to a study in the Scandinavian Journal of Work, Environment and Health. And workers who were moved from a closed-office set-up to an open office complained that they were more stressed and less satisfied, according to a longitudinal study carried out by Calgary University. Productivity, sick leave, employee satisfaction — they all fall under HR’s purview. Help Foster Creativity The takeaway: An open office plan is a fine, modern idea — so long as you

also include other areas for staffers to focus on. In fact, take it from Gensler, which found that most workers spend 50 percent of their time in deep focus, 25 percent of their time collaborating with other employees and the remaining 25 percent learning, socializing and other assorted tasks. If you can set your office up to match those numbers, you’ll be in good shape. For more assistance with this and other HR-related issues, contact Stacey Bruce at 814/833-3200, 800/815-2660 or sbruce@mbausa.org. Stacey Bruce is the director of HR Services at the Manufacturer & Business Association.

8th Annual Women in Leadership Development Conference

IT’S A

Wednesday, April 29, 2015 Ambassador and Banquet Conference Center JUNGLE OUT 7794 Peach THERE! St., Erie, PA

8th Annual Women in Leadership Development Conference

Wednesday, April 29, 2015 7:30 a.m. to 4:00 p.m. Ambassador and Banquet Conference Center 7794 Peach St., Erie, PA

Registration info:

Price: $100 Register (PayPal) at http://wild.sbdcgannon.org Limited to 500 attendees Registration info: Sponsorships available Register (PayPal) at http://wild.sbdcgannon.org Limited to 500 attendees Sponsorships available

Our Key is Dr. Jan author, s passiona for foster into the l arena. Ja cently co LEADIN 20 Influe Share Th Leadersh and Life. this must will be in attendees

April 2015 > www.mbabizmag.com > 21

Fe


Events

2015 Training Graduates

The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 200 graduates of its professional development and computer training programs. Visit www.mbabizmag.com for complete coverage.

Blue Ocean Strategy Center

HR Essential Certification Series — Erie

Front row, from left: Kayla McFreely, Networking Technologies, and Association HR specialist Robyn Hopper. Back row, from left: Katie Wolfram, Rabe Environmental; Amanda King, Reliance Well Services; and Nicole Huber, Ainsworth Pet Nutrition. Not pictured: Patricia Schenker, Armstrong Accuspec.

HR Essential Certification Series — Erie Front row, from left: Amanda Chess, Thomas Erie, Inc.; Association HR specialist Robyn Hopper; and Eileen Polito, Erie Insurance Group. Back row, from left: Bobbi Jo Morey, EPC Powder Manufacturing Inc.; Cindy Faulhaber, Great Lakes Automation Services Inc.; and Andrea Darnofall, Parker Hannifin Corp.

HR Essential Certification Series — Erie

From left: Justin Zinchini, Liberty Iron & Metal LLC; Tiffany McMillin, Ainsworth Pet Nutrition; Lori Nagy, Erie Insurance Group; Max Marcoline, Metrobrand Services LLC/Millcreek Coffee Company; and Association HR specialist Robyn Hopper.

HR Essential Certification Series — Grove City Front row, from left: Jessica Hammill, Rehrig Pacific Company; Elizabeth McDaniel, Armstrong-Indiana Behavioral and Developmental Health Program; and Shirley Wygant, Time Machine, Inc. Back row, from left: Krista Roberts and Jenel Tingley, Shorts Tool & Mfg. Inc.; Denise Wadlinger, Con Yeager Spice Co./CYS Transportation; Nicole Mocik, Office of Human Services, Inc.; and Joni Cummins, West Central Job Partnership Inc. Not pictured: Jaci D’Amico and Monica Beatty, Liberty Electronics, Inc.

HR Essential Certification Series — Erie From left: Kim Campbell, Erie Insurance Group and Robyn Hopper, Association HR specialist.

Certified Supervisory Skills Series — Butler

Front row, from left: Brian Schuster and Kevin Castelli, Ellwood City Forge. Back row, from left: Anthony Podbielski and Wes Cunningham, Ellwood City Forge; Mark Columbus, North American Forgemasters; and Evan Fennell, Ellwood City Forge.

Leadership for Team Leaders — Erie

Front row, from left: Gene Holmes, Ridg-U-Rak Inc.; Mike Andrzejewski, Industrial Sales & Mfg.; Netra Subodi and Christopher Zipperi, Maple Donuts; Tim Sandrock, AlturnaMats; Rocky Denny Jr. and Jamie Oswalt, Super Tire & Rubber Corp.; and Association Training specialist Lisa DeFilippo. Back row, from left: Tyler Beshaw, AlturnaMats; Jeff Fair, Onex Inc.; Jen Lockard, Jenn Benn and Anthony Homansky, Maple Donuts; Michael Miaray, Ridg-U-Rak; and Doug Mullinax, Custom Engineering Co.

22 < www.mbabizmag.com < April 2015

Certified Supervisory Skills Series — Meadville

Front row, from left: Kelly Carr, Channellock Inc.; Josh Shoaff, Advanced Cast Products; Casey Rickerson, Ellwood National Steel; and Ronni Jessup and Mike Redding, Channellock, Inc.


Certified Supervisory Skills Series — Erie

Front row, from left: Kara Dipini, Medicor Associates; Kelly Hetz Kemrer, Fairview Evergreen Nurseries; Megan Scutella, VNA of Erie County; Kim Learn-Stewart, Warren Company; Jenny Sterner, Medicor Associates; Jessica Brennan, Erie Insurance; and Laura Salamonsen, Erie’s Public Schools. Back row, from left: Chris Putnam, American Molding & Technologies Inc.; Glenn Craig, Ridg-U-Rak; Jacob Gland, Eriez Manufacturing; Kenneth Benden, Electric Materials Company; Jason Lockwood, Arvite Technology; Nadine Van Tassel, Port Erie Plastics and Walt Poff, Ameridrives International.

Certified Supervisory Skills Series — Corry

Front row, from left: Amanda Higley and Valerie Bridgham, Corry Manufacturing; Nick Jawdy, Bud Kressler and Wilbur Bush, Parker Hannifin. Back row, from left: Jim Nichols, Corry Manufacturing; Jason Halfast, Snyder’s Napa Auto Sales; and Cody Hanson, Parker Hannifin.

Certified Supervisory Skills Series — Erie Certified Supervisory Skills Series — Meadville

Front row, from left: Darlene Dangel, Greenleaf Corporation; Amanda Beish, Erie Homes for Children & Adults; Robert Newhard, Advanced Cast Products; and Jeff Butterworth, Greenleaf Corporation. Back row, from left: Hayden Hawthorne, Deist Industries; Kim Doutt, Advanced Cast Products; Dave Wheeler, Deist Industries; Mark Heckman, Advanced Cast Products; Jason Fronce, Greenleaf Corporation; Jamon Davis, Layke Tool and Douglas Luikart, Greenleaf Corporation.

Certified Supervisory Skills Series — Greenville

Front row, from left: Jaymene Svirbly and Tina Schultz, PennTecQ Inc. Back row, from left: Nate McLaughlin, John VanSickle, Bruce Hashimoto and Judy Reed, PennTecQ Inc.

Front row, from left: Kellee Stempka, Armstrong Accuspec; Bridget Ward, Erie Water Works; Jessica Stefano and Dina Heile, IP Services, Inc.; Misty Yaple, Port Erie Plastics; Katrina Herring, IP Services, Inc.; Emily Kaminske, VNA of Erie County; and Randy Daniels, Molded Fiberglass Tray Co. Back row, from left: William Ferguson, Hoffman Industrial; Kevin Elliott, Ellwood Ohio Machine; Chad Ellsworth, Erie Water Works; Eric McCullough, Quest at Saint Vincent; Jeremy Ricketts, Erie Regional Airport Authority; Josh Rader and Jason Borst, McInnes Rolled Rings; Greg Pongratz, FMC Technologies; Joe Welch, Quest Diagnostics; and Stephen Ferguson, Polymer Molding.

Certified Supervisory Skills Series — Greenville From left: Melanie Vosler, Jennifer Korbini, William Taylor and Kathleen Watt, PennTecQ Inc.

Certified Supervisory Skills Series — Greenville

From left: Sharon Schreiber, Joe Stewart, Curtis Stoyer and Jennifer Watt, PennTecQ Inc.

April 2015 > www.mbabizmag.com > 23


People Buzz STAIRWAYS BEHAVIORAL HEALTH NAMES EXECUTIVE DIRECTOR The Stairways Behavioral Health Board of Directors recently announced that Valerie Vicari is the community mental health-care provider’s new executive director. Vicari has served in progressive leadership roles for 15 years with the Pennsylvania Department of Public Welfare, Office of Mental Health and Substance Abuse Services (OMHSAS), including her most recent position as director of the Division of Western Operations, with oversight of mental health programs in 46 counties across Western and Central Pennsylvania. Vicari has been a leader in the implementation and management of the Pennsylvania Medicaid managed care program, HealthChoices. She has been instrumental in the development and statewide expansion of evidencebased practices such as the Assertive Community Teams and Certified Peer Specialist programs. Vicari received her undergraduate education from Clarion University of Pennsylvania. She earned a master’s degree at Carlow College in pro- fessional leadership for management, nonprofit concentration. LORD CORPORATION DELIVERS TECHNOLOGY INNOVATION AWARD LORD Corporation presented Mark Jolly, Ph.D., senior manager of Mechanical and Sensing Research & Development, with the 2014 Donald M. Alstadt Technology Innovation Award. The award recognizes LORD employees for innovative technological achievements, as well as exceptional leadership and critical contributions to the company’s success in collaborating with customers to solve technical challenges. Recognized at the LORD Board of Directors dinner in December, Jolly was honored for his invention of OmniDirectional Active Vibration Control for 24 < www.mbabizmag.com < April 2015

the aerospace and defense industry. This technology reduces vibration and weight on helicopters, thus increasing fuel economy, flying times, and enabling additional payload for the company’s helicopter OEM customers. Honoring the legacy of former LORD Chairman Emeritus Donald M. Alstadt, the award was established in 2006 to recognize technology-based innovation that results in value for all LORD stakeholders — customers, employees, suppliers and shareholders. In addition to technological advancement, award criterion is based on business impact, such as sales dollars, profit margin and cost savings. Jolly’s contributions exemplify the innovative spirit and culture valued by LORD. PHYSICIAN ASSISTANT JOINS TRI-STATE PAIN INSTITUTE Tri-State Pain Institute, a leading regional pain management center, recently welcomed physician assistant Brian Horgan to its staff. Board-certified and licensed in Pennsylvania and Maryland, Horgan has more than 25 years experience in arthritis and pain management. A member of the American Academy of Physician Assistants and the Association of Rheumatology Health Professionals, Horgan most recently worked with UPMC Center for Wellness and Musculoskeletal Care and UPMC Rheumatology Associates of Northwest Pennsylvania, both in Erie. Horgan earned his a master degree in physician assistant studies from the University of Nebraska in Omaha and completed his bachelor’s degree in combined sciences at Youngstown State University in Youngstown, Ohio. With offices in Erie and Corry, Pennsylvania and Jamestown, New York, the Tri-State Pain Institute is the region’s premiere pain management center, offering advanced treatment and proven therapies for the long-term relief of acute and chronic pain, including back, neck, leg, joint and shoulder pain, as well as pain from arthritis, headaches, fibromyalgia, post surgery and cancer complications.

DEPARTMENTS > Contact: Karen Torres

CHANNELLOCK INC. ANNOUNCES NEW HIRE, PROMOTION Channellock Inc., the company best known for its American-made tongue and groove pliers, has hired Kate Wonders to fill the position of payroll clerk. In her new role, Wonders is responsible for all tasks related to the preparation and processing of the bi-weekly payroll for over 300 hourly associates. She will also review the shop floor data entry as it relates to the pay impact of the individual and will maintain the databases, which support all the functions that pass through the Payroll Department. Additionally, Jeff Irwin has been promoted to die supervisor. As a supervisor, Irwin will oversee the die room operations in the machine shop and will report to Harry Reckhart, who is the product engineering manager. MAPLE DONUTS FILLS TWO KEY POSITIONS Maple Donuts recently made two staff announcements, including naming Garry Rausch as plant manager of its Lake City plant and the hiring of Frank Stefano as maintenance manager. Rausch brings with him more than 35 years of food manufacturing experience. In this role, he will utilize his skill sets in continuous improvement and lean manufacturing as well as leadership development. Stefano is responsible for the building and machinery maintenance. His history includes 28 years in industrial/commercial/ municipal facilities maintenance. Stefano emphasizes predictive/preventative maintenance for his department. Some of his past experiences include Erie Bearings, International Paper, Steris Corporation and the Erie Regional Airport Authority.


GetGo | Erie, PA – September 2014

Jamestown High School | Gymnasium Renovations Jamestown, NY - August 2013

Warren General Hospital | Cancer Center Warren, PA – August 2013

General Contractors & Engineers 1440 W 21st Street Erie, PA 16502 Office: 814-459-8551

Web: www.perryconst.com

ERIE Insurance | Technical Learning Center - Model House Erie, PA – October 2014

CELEBRATING 25 YEARS OF CONTINUED SUCCESS IN THE TRI-STATE AREA!


PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

You want your employees to live healthy, happy lives. We couldn’t agree more.

We understand that your employees are your most important resource. We also understand that the healthier they are, the healthier your company is. That’s why all of our affordable health plans come with MyHealth – so employees have everything they need to be the healthiest person they can be. They also come with award-winning customer support from a Health Care Concierge and access to the top-ranked care of UPMC. It’s probably why almost all of our group members stay with us year after year.

Call for a quote today at 1-888-383-UPMC.

UPMCHealthPlan.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.