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SUPERVISORS/MANAGERS RETIRING SOON? “UP-AND-COMERS” READY TO STEP IN? DO SUPERVISORS FIND IT DIFFICULT TO MANAGE “WORK FRIENDS”? DO MANAGERS LACK THE “SOFT SKILLS” THAT MOTIVATE OTHERS?
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For nearly 30 years, the Manufacturer & Business Association (MBA) has provided professional training for businesses of every size and every type – helping today’s employees harness their true potential by learning the critical skills needed to succeed in today’s work world. The following (3) certificate programs offer new and experienced supervisors a highly interactive educational approach, with easily adaptable management tools and skills embraced by the most successful mangers.
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To be successful in a leadership role, new supervisors need to have a thorough understanding of what their responsibilities are to the organization and to the people they lead. Our fivepart series addresses the challenges of this position in a highly interactive, relaxed classroom atmosphere.
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Our 10-day series focuses on the critical “people skills” needed to motivate, inspire and lead teams effectively. Strong emphasis is placed on mastering management techniques and legal compliance issues essential to the success of both the supervisor and the company. Each course consists of two full days of training (16 hours).
MODERN MANAGEMENT CERTIFICATE:
The MBA’s NEW Modern Management certification series is a comprehensive program designed for professionals with two or more year’s experience who are looking to build upon the leadership skills necessary to create a high-performing, trusted team environment that gets results!
VOL. XXXI NO. 8 | AUGUST 2018
SARAH A. REED CHILDREN’S CENTER
SPOTLIGHT Q&A:
ERIE INNOVATION DISTRICT OFFERS NEW OPPORTUNITIES
A LEADER IN CHILDREN’S MENTAL AND BEHAVIORAL HEALTH SERVICES
ON THE HILL:
PENNSYLVANIA’S U.S. SENATE CANDIDATES ADDRESS KEY ISSUES
113th Annual Event Proudly presents an evening with best-selling author and groundbreaking entrepreneur...
DAYMOND JOHN “THE PEOPLE’S SHARK”
Daymond John is the personification of the American Dream. From his humble beginnings on the streets of New York to a self-made multimillionaire with more than $4 billion in global sales, John continues to set standards of excellence in business.
THURSDAY, OCTOBER 4, 2018 Bayfront Convention Center • Erie
Co-Star of ABC’s Shark Tank Founder & CEO
5 p.m. Cocktail Reception 7 p.m. Keynote Sponsored by:
CEO, The Shark Group Presidential Ambassador for Global Entrepreneurship Reservations: Please call Terry at 814/833-3200 or 800/815-2660.
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FEATURES FEATURE STORY | WHAT’S INSIDE
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Entrepreneurship Why our future needs risk takers.
COVER STORY | LOCAL PROFILE
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Sarah A. Reed Children’s Center Center administrators explain how this 147-year-old agency has set itself apart in the treatment of mental and behavioral health through its high standards of care and intensive treatment programs.
SPOTLIGHT Q&A | PROGRESS
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Karl Sanchack, president and chief executive officer of the Erie Innovation District, LLC, provides an overview of this visionary innovation hub and its goals for the future.
EDITORIAL DEPARTMENTS
SPECIAL SECTION
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BUSINESS BUZZ
EVENTS & EXTRAS
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PEOPLE BUZZ
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HR CONNECTION
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LEGAL Q&A
WHAT’S NEW
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HEALTH MATTERS | WELLNESS
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See photos from the Association’s recent networking events.
LEGAL BRIEF | COMPLIANCE
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AWARDS AND PROMOTIONS
WORKPLACE TRENDS
GET ANSWERS
Executive Editor Karen Torres ktorres@mbausa.org Contributing Writers Jezree Friend Tom Pendleton Melinda Schriver Stephenie DiLuzio
READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
What the new data protection rules mean for businesses outside of Europe. Thomas A. Pendleton
ON THE HILL | ELECTION
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Photography iStockPhoto.com Matt Kleck Casey Naylon Sarah A. Reed Children’s Center
Ruining the fun: How to keep sickness away from your vacation Melinda L. Schriver
Pennsylvania’s U.S. Senate candidates weigh in on key business issues. Jezree Friend
Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org Frank Mehler 814/833-3200 fmehler@mbausa.org
On the Cover: Sarah A. Reed Children’s Center celebrates the groundbreaking of its new residence hall in Millcreek Township. Front row, from left: Gary Koenig, Sarah Reed Board chairman; Board member Mark Manczka; Jenny Weigold Geertson and Ki Kim, UPMC Health Plan; Ann Scott and Sean Dugan, Erie Insurance; and, Board member Shelane Buehler. Back row, from left: James Mando, president/CEO of Sarah Reed; Board member James McKibben; Gary Bukowski, associate VP of Development at Sarah Reed; Board member David Russo; and, Robert Freeman, VP of Finance and Operations at Sarah Reed. For full story, see page 5.
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 2018 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.
mbabizmag.com • AUGUST 2018
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FEATURE STORY | WHAT’S INSIDE
Entrepreneurship
WHY OUR FUTURE NEEDS RISK TAKERS
Entrepreneurship is a driving force of the American economy. Every business started as an idea and required a great deal of courage and commitment to get off the ground. In fact, many entrepreneurs fail multiple times before they find success. But it’s important that they take the risks that they do. Once a business is growing and attracting customers, it creates tremendous value for the entrepreneurs and their entire communities. According to the U.S. Chamber of Commerce, new businesses account for the vast majority of net new jobs in the United States. In the last three decades, firms less than a year old have created 1.5 million jobs annually. Entrepreneurs also drive innovation, which gives our economy the fuel it needs to grow and stay competitive. Consider this: Research conducted by the University of Wisconsin Cooperative Extension and UW-Madison, found that nations with more entrepreneurship have higher GDPs, and entrepreneurship in the United States is tied to income growth and poverty reduction in both rural and urban areas. Entrepreneurship also tends to make local, state and regional economies more diverse, and, therefore, less reliant on a single employer or industry, which leads to greater economic stability. Entrepreneurs are indeed the ones changing the world, one solution and one innovation at a time. The United
States provides the best environment for cultivating entrepreneurship, ranking first out of 138 countries using the Global Entrepreneurship and Development Index. In fact, entrepreneurs who succeeded in a prior venture have a 30-percent chance of success in their next venture — and greater chance to impact not only their industry, but also the business world.
We’ll also talk with Karl Sanchak, president and chief executive officer of the Erie Innovation District, about plans for this visionary innovation hub and its goals for the future. Plus, don’t miss this month’s Legal Brief about the General Data Protection Regulation and how it could impact any business with a presence on the Internet.
In this edition of the Business Magazine, we’ll explore the entrepreneurial spirit and those business owners and risk takers who made the decision to strike out on their own and create opportunity and wealth. And, speaking of pioneers, we’ll showcase the Sarah A. Reed Children’s Center, which was founded in 1871 by a group of women interested in helping orphaned and homeless children and has since evolved into a leader in the treatment of behavioral, mental and emotional health.
The Manufacturer & Business Association has numerous programs and services that can help entrepreneurs and small business owners navigate the challenges and opportunities in today’s business world. To learn more, visit www.mbausa.org!
MAKE AN IMPACT!
mbabizmag.com • AUGUST 2018
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Katlyn • Nathan • Katrina Erie FCU Business Lending Team
If your business needs money to grow, take advantage of new opportunities, or buy equipment, be sure to talk to our business lending team about all of the options we offer. You’ll find everything you love about your credit union, now for your business. Contact Nathan Crouch, Commercial Lender (814) 825-2436 Ext. 1052 • ncrouch@eriefcu.org Working Capital Lines of Credit | Equipment Financing
Commercial Real Estate Loans | Business Expansion Loans Loans subject to credit approval. Membership eligibility required.
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MBA Adv2 0218.indd 1
AUGUST 2018 • mbabizmag.com
2/21/18 4:33 PM Not getting the service you deserve from your cu
At Erie FCU, you’re a valued member, not just a number. And it’s our
COVER STORY | LOCAL PROFILE
A Leader in Children’s Mental and Behavioral Health Services Life-changing. That’s how Claudia describes her stay at Sarah A. Reed Children’s Center. “Without Sarah Reed, I don’t think I would be where I am today. Sarah Reed gives people chances to shine and do their best. It’s a life-changing experience. Each of us takes so much out of Sarah Reed: coping skills, life skills, social skills … just about everything.” Claudia is one of the 52 children, ages 5-18, who currently resides at Sarah Reed’s Residential Treatment Program in Millcreek Township. This program provides round-the-clock medical, behavioral and educational support to children with mental health and behavioral health challenges. Sadly, 90 percent of the children in this program have experienced trauma, neglect and abuse, which oftentimes is the source of their mental and behavioral issues. Sarah Reed’s Residential Program serves children from 43 counties across Pennsylvania, including: Erie, Crawford, Allegheny, Westmoreland, Dauphin and Philadelphia. “It takes a highly trained staff to work with traumatized children, and Sarah Reed is one of the few agencies in the region that is certified in the highly effective Sanctuary® Model,” explains Center President and CEO James Mando. “This evidence-based treatment plan creates a safe, therapeutic environment where staff members focus on the severe effects of trauma, asking the question ‘what’s happened to this child?’ rather than ‘what’s wrong with this child?’ “ This high standard of care sets Sarah Reed apart. The Center’s team of psychiatrists, psychologists, medical staff, instructors and behavioral staff are trained in trauma-informed care. They also utilize the latest cutting-edge therapies to help children heal, strengthen their families and teach them the necessary skills to succeed at home, in school and in the community. To meet the demand for 24-hour Residential care, Sarah Reed is building a fifth residence hall. This 12-bed unit costs $1.035 million and will help an additional 20-25 children annually.
According to Mando, the Residential Program is Sarah Reed’s most intensive treatment option, but there are a wide-range of programs available that help more than 1,700 children and their families succeed each year. Sarah Reed serves all Erie County and Erie City School Districts by providing alternative education services to students, and the agency provides refocus rooms in Fairview, Iroquois, General McLane, Northwestern and North East School Districts. Refocus rooms are school-based programs that provide emotional, behavioral and/or academic support to students in need. Sarah Reed’s Outpatient Behavioral Health Program, located in downtown Erie’s Professional Building, helps more than 730 local children each year through individual and family therapy, psychiatric medication management, parenting strategies and assessment services to help children cope with loss, family stressors, trauma, anger management, self-esteem issues and peer relationships. Outpatient therapists offer Parent Child Interactive Therapy for children ages 2½ to 7, which enhances parent-child relationships and helps foster successful parenting skills. The Outpatient Program also partners with several school districts, including Millcreek, Fairview, Fort LeBoeuf, Wattsburg, Union City and Villa Maria Academy to provide onsite therapy for students. According to Mando, the Partial and Acute Partial Hospitalization Programs at Sarah Reed are also in high demand. These school-day programs help more than 450 children annually with emotional and behavioral disturbances. The goal is to restore a level of functioning that enables the child to successfully return to a regular school setting, reenter the community and improve overall family functioning. “The Children’s Center has been a prominent source of hope and support for children and families in the Erie Community since 1871 and is excited to expand its services in order to help even more families succeed,” Mando says. To learn more, visit www.SarahReed.org or call 814/838-1954.
James Mando, President and CEO
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True Performers know preventive care is better care. As part of our True Performance program, we’re helping Dr. Christine Florendo keep her patients healthy — and rewarding her for it. By using our data, she and her staff are able to identify patients who need specific vaccines. It also allows them to take a more proactive role in scheduling routine follow-ups. Because of doctors like Christine, to date, this program has saved $260 million in emergency room visits and hospital stays.*
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True Performance results:
11% fewer emergency room visits 16% fewer hospital admissions $260 million in cost avoided *Based on reduction in hospital costs for patients with True Performance doctors compared to those without from January 2017 to December 2017. Highmark Blue Cross Blue Shield is an independent licensee of the Blue Cross and Blue Shield Association.
Christine Florendo, MD Kids Care Pediatrics True Performer
SPOTLIGHT Q&A| PROGRESS
Erie Innovation District Offers New Opportunities Entrepreneurship and innovation often go hand-in-hand — specifically when it comes to the pursuit of new ideas, new solutions and new products. Here, Karl Sanchack, president and chief executive officer of the Erie Innovation District, LLC, provides an overview of this visionary innovation hub and its goals for the future.
Please describe the Erie Innovation District and how it came to be. The Erie Innovation District (EID) is a nonprofit organization dedicated to the transformation and revitalization of the city from an economic and infrastructural standpoint. This will be achieved by establishing Erie as a destination for secure cyber and connected services. The District was established in September of 2016, when Mercyhurst University (EID’s lead partner) received a $4 million grant from the Erie Community Foundation. Why is an innovation district so critical to our area’s economic development? Historically, manufacturing has been the lifeblood of the Erie region, but this industry is changing and there are more opportunities for technology jobs, as well. As a university town, we believe Erie is in an optimal position to create a new sector comprised of highly skilled, familysustaining jobs in the cyber security and data science fields. An innovation district will play a vital role in this objective, serving as a hub for this activity to be created, particularly in attracting new startups (through accelerator programs) and existing companies looking to test their products in our market.
You were appointed as the inaugural president and CEO of the Erie Innovation District in September 2017. What progress have you made so far? There has been a significant amount of progress made in a short period of time. We have solidified collaborative agreements with firms such as Singularity University, Quantela, Erie Insurance and Dell. The Secure Erie Accelerator, a 10-week program for businesses in the cyber/IOT space, has opened its application process for its July start time, receiving applications from over 35 countries including Singapore, United Arab Emirates, U.K. and Sweden. Additionally, the Innovation District has announced its first “win” in an effort to attract jobs to the area, as Federal Resources Corporation will be moving their headquarters from the D.C. area to Erie, bringing several job opportunities with them. What are the Erie Innovation District’s long-term goals? Ultimately, the Erie Innovation District seeks to create a secure digital services ecosystem in the city, which in turn would generate high-paying jobs and allow the city’s economic situation to improve.
We would like to mold Erie into a test marketplace for secure digital services and products in this space so that companies are attracted to the area and ultimately invest in Erie as a result. How can other employers get involved? There are a number of ways to support EID and its initiatives. One area of support is startup mentorship. We are actively searching for companies and individuals to act as mentors for the startups that we will be bringing into the city to participate in the Secure Erie Accelerator. This will play a crucial role in the experience for these teams as we look to entice them to establish headquarters in Erie upon the completion of their time in the accelerator. Another area of support is through corporate sponsorship. We are openly searching for companies that are willing to partner with us and our initiatives, offering direct investment along with in-kind support and services. For more information, visit www.erieinnovationdistrict.com.
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Free Savings Analysis: Contact Judy Rosatti today at 814/833-3200, 800/8152660 or jrosatti@mbausa.org!
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AUGUST 2018 • mbabizmag.com
HEALTH MATTERS | WELLNESS
Ruining the Fun
How to keep sickness away from your vacation • To prevent catching a cold while airborne, bring your own disinfecting wipes and wipe off the tray and armrests. Wash your hands often and stay hydrated. Get up and move around every hour or two. • If you’re driving to your destination, make sure you’re well rested. According to the National Highway Traffic Safety Commission, driving while drowsy is a contributing factor in 72,000 accidents annually. Switch drivers, if possible, every few hours.
Melinda L. Schriver is the senior director of Telehealth Strategic Solutions for UPMC Health Plan.
With the start of the school year only weeks away, it’s always a good time to enjoy the last days of the summer vacation season. Whether you’re seeing new places or revisiting a familiar favorite, disconnecting from work and spending time with friends and family allows most people to come back to work feeling fresher and more productive. And it’s important to take that time. According to 2016 Harvard Business Review article, a U.S. Travel Association study found that 95 percent of people surveyed claimed using their paid time off was very important. And yet more than half of Americans (55 percent) left vacation days unused, which equates to 658 million unused vacation days. But even if you take your vacation, what happens if you spend the time sick? Here, we’ll focus on ways to stay healthy on your vacation.
How Can People Help Avoid Getting Sick on Vacation Time? No one wants to get sick during vacation, but it happens. Here’s what you need to know to prevent or minimize the impact of a medical issue on your precious time off: • If you take medication, make sure to bring enough to last the entire trip. Pack medications in your purse or carry-on bag; do not put them in checked luggage. • If any of your medications are controlled or injectable substances, carry a letter from the prescribing physician on official letterhead. • If you wear glasses, pack a spare pair. You may also want to take a copy of the lens prescription just in case. • Pack a travel health kit that includes pain relief, such as ibuprofen or naproxen, Band-Aids, antiseptic cream, and drugs for stomach upset and motion sickness. For international travel, research what you should and should not eat and drink. You may need to stick to bottled water and avoid foods that haven’t been cooked or peeled. • Don’t forget sunscreen (with an SPF of at least 30) and insect repellant (if you’ll need them).
How Does The Stress of Getting Ready Impact Your Immune System? If you’ve worked late hours tying up loose ends before a trip, that stress can shift your immune system into high gear. Once your stress levels drop, your immune system may also downshift and leave you exposed to pathogens. Try to keep everything in perspective. A recent University of Chicago study found that people experienced similar levels of enjoyment on their vacation regardless of whether they’d completed all their work first. What If You Do Get Sick? Food poisoning, sunburn and sinus infections can happen despite the most careful planning. If someone you’re traveling with needs treatment for a nonemergency medical condition, telemedicine providers can address some of the most common issues through a virtual visit via smartphone, tablet or computer. Providers can even prescribe medicine when necessary. Plus, telemedicine services mean you won’t waste time trying to find an urgent care clinic or an emergency room when you’re in unfamiliar surroundings. Many insurance companies cover telemedicine. The cost is often less than an urgent care or emergency room visit. Be sure to find out the details of your plan’s coverage before you go. For example, UPMC Health Plan covers its members when traveling through nationwide virtual urgent care visits, a large national urgent care network, a robust extended network, emergency care coverage and a growing telemedicine program. For more information, visit www.upmchealthplan.com.
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AUGUST 2018 • mbabizmag.com
LEGAL BRIEF | COMPLIANCE
What the New Data Protection Rules Mean for Businesses Outside of Europe In order to be subject to the GDPR, a company must target a person (“a data subject”) in an EU country. Generic marketing does not count. For example, if a German citizen uses Google and finds an English-language webpage written for US consumers or business customers, the German citizen is not covered by the GDPR. However, if the same website is written in German and there are references to customers within the European Union, then the webpage would be considered to be targeted marketing and the GDPR applies. Likewise, accepting Euros as payment and having a “.de” suffix (the Internet suffix for Germany), would be additional evidence in favor of applying the GDPR.
Thomas A. Pendleton is a partner at MacDonald Illig Attorneys and has been representing businesses, nonprofit corporations and individuals in a wide variety of legal matters for more than 25 years. He concentrates his practice on business matters, including preparing agreements and commercial litigation. Use of the Internet allows companies to accumulate vast amounts of data about individual consumers such as credit card information, e-mail addresses, personal preferences and demographic information. The accumulation of this data is a frequent target of hackers and other thieves who want to use it for improper purposes. Governments have been actively imposing obligations upon businesses to inform consumers about the personal data the businesses are collecting, obtaining the consumers’ consent to do so, and notifying
the consumers if the security of this data has been breached. What is GDPR and Why It Matters The European Union (EU) recently adopted the General Data Protection Regulation (“GDPR”). Even if your company does not have any direct business operations in the 28 member states of the European Union, you should be aware of the GDPR’s requirements. Any company that has a presence on the Internet and markets its goods or services to consumers or businesses over the Internet must comply with this regulation. Companies likely to be subject to the GDPR are U.S.-based hospitality businesses, travel companies, software services and e-commerce companies. Furthermore, any U.S. company that has identified a market in an EU country and has localized Web content should review its Internet operations. Generally speaking, the GDPR applies if the U.S.-based company collects personal data or behavioral information from someone in an EU country. This collection could occur as part of a marketing survey. Personal data includes a name, address, IP address, genetic data and biometric data.
If the GDPR applies to a company’s Internet marketing operations, a person’s consent must be “freely given” specific, informed and unambiguous. This consent can be obtained from a “check box” without a default “x” in it, accompanied by clear language about what will be done with any e-mail addresses obtained. It is not permissible to ask the user to click on a link to a long “terms and conditions” document filled with legalese. If a person signs up for a service or buys a product, the vendor must obtain explicit permission for each type of use of personal data. For example, a separate check box is required for: 1) using an e-mail address for e-mail promotions, and 2) sharing that e-mail address with third-party affiliates. Once the data is collected, U.S. companies will have to protect it under the GDPR’s rules. One of the requirements is to notify a user within 72 hours of a breach or disclosure of medical or financial information, or identifiers involving children. This notification must be sent directly to the consumer, not simply broadcast in the news media or over social media. The relevant regulatory body must also be notified. A brief article of this nature cannot cover all of the intricacies of the GDPR. If you believe that your company may be subject to the GDPR now or in the future, contact Tom Pendleton at 814/870-7756 or tpendleton@mijb.com.
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BUSINESS BUZZ | WHAT’S NEW QUINN LAW FIRM CELEBRATES 100TH ANNIVERSARY
The Quinn Law Firm, 2222 West Grandview Boulevard, celebrated its 100th anniversary in 2018 with an anniversary party on the evening of Thursday, June 21. Many members of the Erie community who have helped the firm to achieve this momentous milestone were in attendance to celebrate with the Quinn Law Firm attorneys and staff. County Executive Kathy Dahlkemper presented the Quinn Law Firm with a citation in recognition of the Firm’s historic occasion. “Not only is this an acknowledgement of our first 100 years, but it is a kickoff to our next 100,” said Attorney John M. Quinn Jr., a third-generation attorney with the Quinn Law Firm. The Quinn Law Firm is one of the largest general practice law firms in northwestern Pennsylvania. From its Erie law offices, more than 25 lawyers and legal professionals offer counsel and representation in a range of legal practice areas. For more details, visit www.quinnfirm.com.
MANUFACTURING SUMMIT 2018 SET FOR SEPTEMBER 11
“Manufacturing Summit 2018, Growing the Petrochemical Industry in Western PA,” will be held September 11 at the Cross Creek Resort, 3815 Route 8 in Titusville. The event is presented by the Northwest Pennsylvania Oil and Gas Hub Taskforce. Speakers include Joseph Minnette of Shell, Jerry James of Artex Oil Company (Shale Cresent USA), Kevin Acklin of People Gas, Martha Moore of the American Chemistry Council, Taylor Robinson of PLG Consulting (Logistics), the Office of Research Program Management at WVU, and Supply Chain. For more information, visit www.nwpaoilandgashub.com.
PROCHEM TECH PRESENTS AT ANNUAL CONFERENCE
ProChemTech International Chief Chemist, Timothy Keister, CWT, FAIC, recently presented Industrial Water Reuse, A Case History Report at the 2018 Pennsylvania Association of Environmental Professionals Annual Conference held at the Toftrees Conference Center in State College. The technical presentation reported on a wastewater reuse project undertaken by ProChemTech for an Arizona chemical manufacturing firm in 2017. The project involved reuse of reverse osmosis concentrate (reject) wastewater as makeup to the plant cooling towers. Equipment supplied included a ProChemTech manufactured dual pump skid with control panel, wastewater equalization tank, and new chemical control and feed systems for the three plant cooling towers. The installed system was started up in March 2017, and has been in continuous operation since. ProChemTech has been in innovative water and wastewater management technologies since 1987. For more information, visit www.prochemtech.com.
UPMC HAMOT FIRST IN U.S. TO USE
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From left: Attorneys Lawrence C. Bolla, George Joseph, Erie County Executive Kathy Dahlkemper, John M. Quinn Jr., Frank L. Kroto and James F. Toohey at the Quinn Law Firm’s centennial celebration.
NEW ROBOTIC TECHNOLOGY TO DETECT LUNG CANCER EARLIER
More than 90 percent of people diagnosed with lung cancer do not survive the disease, in part because it is often found at an advanced stage. Now, new technology available only at UPMC Hamot can diagnose lung cancer earlier. The Auris Health’s Monarch™ Platform, a new robotic system, allows specialists to use a minimally invasive endoscope to see inside the lungs, obtain a tissue sample for biopsy and enable earlier, more accurate diagnosis of small and hard-to-reach nodules in the periphery of the lung. The technology integrates the latest advancements in robotics, software, data science and endoscopy, or the use of small cameras and tools to enter the body through its natural openings. UPMC Hamot is the first hospital in the United States to utilize the commercially available platform, which was just approved by the U.S. Food and Drug Administration. “Lung cancer is the leading cause of cancer deaths worldwide, in part because it has no symptoms in its early stages. This system holds potential to help us make a diagnosis earlier by providing improved reach, vision and control for bronchoscopic procedures,” said Stephen Kovacs, D.O., co-director, UPMC Hamot Comprehensive Lung Center. “Earlier diagnosis with this least invasive approach aims to increase chances of survival and reduce unnecessary invasive diagnostic procedures.” There are a variety of diagnostic options currently available for lung cancer, but all have limitations in accuracy, safety or invasiveness. These limitations can lead to false positives, false negatives, or side effects such as pneumothorax (collapsed lung) and hemorrhage, which may increase health care costs and extend hospital stays. Kovacs said that the device uses a familiar controller-like interface that is used to navigate the flexible robotic endoscope to the periphery of the
lung. “Combining traditional endoscopic views into the lung with computer-assisted navigation, the robot provides us with continuous bronchoscope vision throughout the entire procedure.” For more information, visit www.upmchamot.com.
II-VI EPIWORKS EXPANDS MANUFACTURING CENTER OF EXCELLENCE
II-VI EpiWorks, a subsidiary of II-VI Incorporated based in Saxonburg, Pennsylvania, recently opened an expansion of its center of manufacturing excellence in Champaign, Illinois. The company’s state-of-the-art facility is a manufacturing center for compound semiconductors that makes epitaxial wafer products. The expansion will quadruple production of products that enable some of the most exciting new consumer electronics in the world. “II-VI and the State of Illinois have formed a strong partnership, sharing a vision that businesses with leading edge technology and advanced manufacturing capabilities are the most competitive over the long-term,” said Dr. Chuck Mattera, president and CEO, II-VI Incorporated. “With support from Illinois, we expect to continue to invest in this Champaign facility, by adding state-ofthe-art manufacturing capacity, improving process capabilities, broadening the product portfolio and recruiting and developing a lot of talent to fill the anticipated growth in jobs and opportunities for career growth,” he added. II-VI EpiWorks was founded by faculty and graduate students of the University of Illinois at UrbanaChampaign Micro+Nanotechnology Lab (MNTL). II-VI EpiWorks has committed to keeping the company in Illinois and to help make the university the center for semiconductor research, commercialization and manufacturing. For more information, visit www.ii-vi.com.
KNOX LAW ATTORNEYS SELECTED FOR SUPER LAWYERS®, RISING STARS LISTS
Mark G. Claypool, Neal R. Devlin and Guy C. Fustine, shareholders at Knox Law, have all been selected for inclusion on the Pennsylvania Super Lawyers® list for 2018. Additionally, three shareholders have been selected for inclusion on the 2018 Pennsylvania Super Lawyers® Rising Stars list: Elliott J. Ehrenreich, Julia M. Herzing and Jeremy T. Toman. According to its website, 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 patented selection process includes independent research, peer nominations and peer evaluations.” Only 5 percent of attorneys in a state are selected for the Super Lawyers® list; only 2.5 percent of attorneys are selected for the Rising Stars list. “Rising Stars” candidates must be 40 years old or younger, or have practiced law for 10 years or less. Claypool is Board Certified in bankruptcy law by the American Board of Certification and a full-time member of Knox Law’s Bankruptcy and Creditors’ Rights Group. His practice is concentrated in creditors’ rights, bankruptcy and commercial litigation. He recently represented the plantiff in one of the largest foreclosure actions in northwestern Pennsylvania. Devlin focuses his practice on litigating complex disputes, and he has litigated such disputes in state and federal courts throughout the country. His practice includes litigating contract, business and intellectual property disputes, as well as white collar crime matters. He is also experienced in addressing all manner of disputes in arbitration and other forms of alternative dispute resolution. Fustine’s practice is focused on business reorganization, commercial litigation and sports law. He is board certified in business bankruptcy law by the American Board of Certification and is AV Preeminent® Peer Review Rated. He also serves as a mediator and neutral evaluator in the Alternative Dispute Resolution Program of the U.S. District Court for the Western District of Pennsylvania. Ehrenreich, who is licensed to practice in both Pennsylvania and New York, concentrates his practice on business acquisitions and financings,
real estate development and construction projects, health law and other general business transactions. He has successfully represented a diverse range of clients including businesses, franchises, physician practices, a national healthcare service provider and several nonprofit entities throughout Western Pennsylvania and Western New York. Herzing focuses her practice on a variety of labor & employment matters, including litigation. She works with both private and public employers, counseling and representing clients on compliance with workplace laws, hiring and firing issues, and collective bargaining. Her practice also includes representing employers in defense of discrimination, wage and hour, and other employment-related claims. She also advises public and private educational institutions on Title IX matters, including investigations and responding to complaints. Toman, who is licensed in Pennsylvania, Ohio and New York, focuses his practice on real estate, business law and environmental law. He has represented commercial clients and individuals in all phases of commercial and residential real estate transactions, including acquisitions, sales, leases, financing, formation and organization of condominiums, and condemnations. He has negotiated numerous oil and gas leases, earning his clients more than $27 million in up-front bonus payments.
TRIANGLE TECH PRESIDENT ELECTED TO NATIONAL BOARD OF DIRECTORS
Timothy J. McMahon, president of the Triangle Tech Group, has been elected as an education member to the Career Education Colleges and Universities (CECU) Board of Directors. McMahon was to begin his two-year term on July 1. The CECU Board of Directors plays a vital role on behalf of nearly 500 member schools in the governance of the Association, from developing legislative and regulatory strategies, to overseeing educational and training programs, to ensuring financial and administrative strength. The CECU Board of Directors oversees the programs and policies that represent the best interests of the students, institutions, faculty and administrators.
PEOPLE BUZZ | AWARDS AND PROMOTIONS ERIE FCU’S YORI NAMED 2018 CREDIT UNION YOUTH AMBASSADOR FOR PENNSYLVANIA
The Pennsylvania Credit Union Association (PCUA) recently named Kristine Yori, Erie Federal Credit Union (Erie FCU) assistant bayfront office branch manager, as the PCUA “Youth Ambassador” representative for 2018. The PCUA held its Youth Ambassador Contest during its “CONNECT 2018” Annual conference held at the Nemacolin Woodlands Resort on May 20 – 22. The PCUA first developed the Credit Union Youth Ambassador of Pennsylvania Contest in 1976 to help young adults learn about the history, philosophy and operation of credit unions. Yori represented the Erie Chapter of Credit Unions in this statewide competition. She competed against four other Pennsylvania Credit Union Chapter representatives. Yori spoke on the topic of “Why Belong,” in which she discussed reasons for why membership in a credit union is so meaningful. Her professional and engaging talk awarded her the PCUA Youth Ambassador title. As the youth ambassador representative for Pennsylvania, Yori will continue to promote youth marketing, as well as the benefits of the contest. She will speak at Association-sponsored education sessions and leadership conferences, and attend chapter meetings and other special events. The state winner also serves as a role model to encourage young people to participate in their credit unions. Since its inception in 1936, Erie Federal Credit Union has been serving its members in and around the Erie, Pennsylvania area with financial products. Erie FCU has grown its membership to more than 57,500 members with assets of $480 million. It has 170 fulland part-time employees with a corporate office and nine branch offices.
McMahon is president and chief operating officer of the Triangle Tech Group with corporate offices in Pittsburgh. He is responsible to direct all operations of the corporation including its six, ACCSC accredited, degree granting technical schools which are located in Pittsburgh, Erie, Greensburg, DuBois, Sunbury and Bethlehem.
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AUGUST 2018 • mbabizmag.com
ON THE HILL | ELECTION
Pennsylvania’s U.S. Senate Candidates Weigh In on Key Business Issues On Tuesday, November 6, Americans will go to the polls to vote for who makes the rules to govern our lives, keep us safe, and pave the way for our future. This midterm, we will also choose one of our two U.S. senators in Pennsylvania. We reached out to the candidates, Republican Lou Barletta and Democrat Bob Casey Jr., for their take on issues facing our Pennsylvania business community. Lou Barletta, Republican Barletta turned the family business into the largest in the state inside of five years. Frustrated with his hometown of Hazleton, Pennsylvania, he successfully ran for City Council before being elected mayor in 1999, where Democrats significantly outnumbered Republicans. In 2004, the White House appointed Barletta to represent the Unites States on the United Nations Advisory Committee of Local Authorities and, in 2008, the Pennsylvania State Mayor’s Association voted him Pennsylvania’s Mayor of the Year. He gained national attention for his Mayoral initiatives and in 2010 defeated a 28-year incumbent Democrat to represent Pennsylvania’s 11th Congressional District where he has served four terms. Bob Casey Jr., Democrat Casey is the incumbent U.S. Senator and son of former Pennsylvania governor Bob Casey Sr. He is a native of Scranton, where he practiced law before he was elected to Pennsylvania’s Auditor General in 1996 and served for two terms. After failing to win his party’s nomination for Pennsylvania governor and being term limited as auditor general, he successfully ran for state treasurer in the 2004 election. In 2006, Casey defeated incumbent Rick Santorum for the U.S. Senate and was re-elected in 2012. He is seeking his third term as U.S. senator. In 2009, the federal government established the minimum wage at $7.25 an hour, the final tier in the three-step implementation of the Fair Minimum Wage Act of 2007. A mere three years later, many advocacy groups were not satisfied and have pushed for a more than double increase to $15. Some states and cities have given in and made, in a few cases, substantial increases. However, due to Newton’s law of cause and effect, many industries have implemented measures to replace unskilled workers with automation. With
an increased minimum wage, this has become more cost efficient for unskilled labor. Additionally, there is the unholy correlation in states and cities with the highest minimum wage laws and corporate tax rates, i.e. California, New York and Seattle to name a few, to be considered. Should the federal minimum wage be increased, left to each individual state, or something else? Barletta: Since Pennsylvania is different from California or Montana, future
minimum wage increases should be determined by individual states. Onesize-fits-all policies from Washington create unintended consequences and prevent each individual state from governing in a way that makes sense for their residents, workers and businesses. Casey: Candidate did not respond as of press time. As a result of the Tax Cuts and Jobs Act, the first real tax overhaul in over 30 years, the economy is booming and American’s optimism is highest it has been this decade. According to the Tax Policy Center, 91 percent of the middle class are receiving these tax breaks. Many companies have enjoyed this support and are returning the favor to our economy by hiring more employees, giving raises and expanding their operations. However, the clock will strike midnight in 2025, and many of the cuts will return to 2017 rates. Should the results of the Tax Cuts and Jobs Act be made permanent, left alone or reversed? Barletta: The Tax Cuts and Jobs Act should be made permanent. The new tax code gives America a competitive advantage against international economic rivals, and American workers are already seeing strong wage and job growth due to the tax cuts. To fully realize these benefits, businesses and families need certainty for long-term planning. Making the tax cuts permanent would help to achieve this. Casey: Candidate did not respond as of press time. mbabizmag.com • AUGUST 2018
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AUGUST 2018 • mbabizmag.com
HR CONNECTION | WORKPLACE TRENDS SURVEY: YOUNGER ENTREPRENEURS TEND TO BE MORE OPTIMISTIC
A survey of 2,165 business owners conducted by the Kauffman Foundation, a nonpartisan group that supports entrepreneurs, finds that younger entrepreneurs are much more optimistic than their older counterparts. According to the 2018 State of Entrepreneurship survey, only 59 percent of entrepreneurs 45 and older believe their business did well last year, compared to 70 percent of younger owners. “These findings are consistent with previous research we conducted, where older entrepreneurs tended to cite practical concerns around making money and meeting family obligations,” said Larry Jacobs, vice president of public affairs for the Kauffman Foundation. “They are likely harsher critics of themselves and their business if they aren’t meeting or exceeding those expectations.”
Your Business and the Amazon Effect
Even with a little gloom coming from older generations, entrepreneurs are staying positive overall. Majorities of entrepreneurs — 65 percent of startups, 69 percent of older businesses — rate the current business climate as excellent or good. Because of this, most entrepreneurs — 88 percent of startups, 81 percent of older businesses — are optimistic about how they will perform this year.
Amazon earns 37 percent of all ecommerce sales and its market share is growing. In 2016, Amazon accounted for 53 percent of all ecommerce growth and its distribution business model is quickly evolving to serve industrial markets.
RESEARCH REVEALS INTERESTING STATS ON WOMEN ENTREPRENEURS
Consider these trends: • What used to move in pallet quantities now moves as single unit parcels. • What used to require seven days leadtime is now often required in 2 hours. • Return percentages that once averaged below 10 percent are now nearly 30 percent. • More manufacturing is “make-to-stock” so customer order fulfillment can ship in two days or less. • Supply chains are getting more complicated. • Customers are requiring more and getting used to better performance.
SCORE recently announced the results of a report on female entrepreneurs. The Megaphone of Main Street: Women’s Entrepreneurship features a number of interesting stats on the state of business ownership among women. Among the findings:
This is either remarkable or frightening. The good news is there are things your business can do to adjust to this new normal, but it requires awareness, acceptance and an openness to change. Where does your business stand in this new paradigm? If you think you can be a manufacturer with an inefficient warehousing operation, it is time to think again and realize you are more likely a distributor with your manufacturing operations serving like a dedicated supplier If you are not augmenting your wholesale business sales with direct-to-consumer sales, you risk being cut out of the supply chain in the future. Few companies think of their inventory as a strategic weapon, and the days of having “six weeks inventory on hand” are over. Today, to maximize customer service at the lowest cost, you must be smarter and truly optimize your inventory by using A/B/C/D/F SKU classification to drive buying decisions of what items are stocked, in which location, and at what optimal inventory level. The Amazon effect is changing how business is done but, if we pay attention, learn from it and are open to change, it can make our businesses better. For more information about planning and productivity training, visit www.mbausa.org.
• Women Are Slightly More Likely Than Men to Start Businesses The SCORE report found that 47 percent of female respondents started businesses within the last year, compared to 44 percent of male respondents. • Women Are More Likely to Launch Businesses in Health Care Specifically, 10 percent of female respondents launched businesses in the health-care industry, compared to 5 percent of male respondents. • Women Are More Likely to Launch Education Businesses Similarly, 9 percent of female respondents launched education businesses, compared to 5 percent of male respondents. • 57 Percent of Women Business Owners Expect Their Revenues to Increase in 2018 This suggests that women-owned businesses are just about as likely to grow as male-owned businesses, in which 59 percent said they expect revenue growth. • Just 2 percent of Women Expect Revenues to Decrease by More than 20 Percent Not many business owners, either male or female, expect their revenues to decrease dramatically in the next year. But women were actually slightly less likely to have this expectation, as 3 percent of males said they expect a 20-percent decrease or more in the next year.
Ray Davis
• 13 Percent of Women-Owned Companies Have Been in Business More Than 20 Years Women are starting businesses at a slightly faster rate now, but they don’t have quite as much longevity as male owned businesses just yet, though it’s fairly close. Of male respondents, 17 percent have been in business for more than 20 years.
is a training instructor at the Manufacturer & Business Association and managing partner of Supply Velocity, a leader in highly effective execution, Lean process improvement and supply chain management.
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LEGAL Q&A | GET ANSWERS WE ARE CHANGING SOME OF OUR EMPLOYEE CLASSIFICATIONS FROM EXEMPT TO NONEXEMPT. HOW SHOULD WE INFORM THE AFFECTED EMPLOYEES OF THIS CHANGE?
This can sometimes be a delicate matter as some employees view an exempt classification as carrying a certain amount of prestige. Therefore, try to be as diplomatic as possible, making sure to stress that the change in status is in no way a reflection of how much the employer values the employee. The nownonexempt employee also must be trained in any timekeeping procedures that will now be required.
OUR BUSINESS HAS AN OFFICE ASSISTANT WHO REGULARLY EATS HER LUNCH AT HER DESK AND PERFORMS SOME LIGHT TASKS WHILE SHE EATS. SHE IS NOT ASKED TO DO THIS AND WHEN HER SUPERVISOR APPROACHED HER ABOUT THIS, SHE WAVED THE SUPERVISOR OFF AND SAID “IT IS NO BIG DEAL” AND THAT SHE DOES NOT WANT TO BE PAID FOR IT. SHE CLAIMS THAT SHE IS JUST TRYING TO CATCH UP ON A FEW THINGS SO THAT SHE CAN LEAVE ON TIME. DOES THE OFFICE ASSISTANT HAVE TO BE PAID FOR HER LUNCH BREAK? For a meal break to be unpaid, the employee must be completely relieved from duty. Therefore, this employee must be paid for the time she is performing work.
DO WE HAVE TO PAY AN EMPLOYEE WHO DOES NOT REPORT TO WORK DUE TO CIRCUMSTANCES BEYOND HIS CONTROL, SUCH AS A NATURAL DISASTER OR OTHER EMERGENCY?
In general, no you do not. Under the Fair Labor Standards Act (FLSA), an employer is obligated to pay a nonexempt employee only for time he or she actually worked. If the office is open, but the employee is unable to come in for any reason the employer has no obligation to pay the employee. Also, an employer may make deductions from the salary of an exempt employee if the employee is absent for one or more full days for personal reasons. The Department of Labor has said that “an employee who is absent due to inclement weather, such as because of transportation difficulties, is absent for personal reasons.”
New WHD Pilot Program Looks to Get Employees PAID This spring, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced a sixmonth trial period for its new Payroll Audit Independent Determination program (PAID). This program is designed to encourage employers to conduct self-audits and pay back wages to workers for inadvertent overtime and minimum wage violations under the Fair Labor Standards Act (FLSA) while avoiding the risks of penalties, liquidated damages and litigation expenses. The WHD issued guidance that identifies the following eligibility requirements: • The employer is covered by the FLSA; • The employees at issue are not subject to certain prevailing wage requirements; • WHD or other court has not found the employer to have violated the FLSA in connection with the relevant pay practice during the previous five years; • The employer is not currently litigating or been threatened with litigation related to a compensation practice; • The employer is not currently being investigated by the WHD or state agency regarding a compensation practice; • The employer is not aware of formal or informal complaints by employees related to a compensation practice; and • The employer has not previously participated in the PAID program. The program does create some concern for employers as the scope of releases under the PAID program would be limited to FLSA claims and would not include state law violations, if applicable. Another concern is that employees may not accept back wages offered if a violation is found and, instead, sue the employer. Once the PAID program is implemented, the WHD will most likely provide employers with additional information that will provide a clearer picture of the potential benefits and perhaps disadvantages of participating in such a program. Regardless of an employer’s desire to participate in the PAID program, it is helpful for employers to conduct audits of their compliance with wage-and-hour requirements. Internal audits often reveal unintentional misclassification of exempt employees and independent contractors, unpaid compensable time, as well as incorrect overtime calculations. For more information on the PAID program, visit https://www.dol.gov/whd/paid/.
Tammy Lamary-Toman, JD, PHR, SHRM-CP, is vice president and employment counsel for the Manufacturer & Business Association.
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AUGUST 2018 • mbabizmag.com
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AUGUST 2018 • mbabizmag.com
EVENTS & EXTRAS | NETWORKING & MORE
The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events or to view the MBA’s photo gallery, visit www.mbausa.org.
The Association recognized the achievements of 66 graduates at its June 26 Training Recognition Luncheon held at the MBA’s Conference Center in Erie.
Board of & Business Association of the Manufacturer n, welcomes Mark Rose, chairman ons at LORD Corporatio rati Ope Erie of ctor mony. Governors and dire ning recognition cere uates to the June trai employers and grad
among the many graduates EmergyCare team members were n. catio certifi s serie y visor super
recognized for their
Patty Welther, the MBA’s manager of Member Engagement (far left), introduces the MBA’s training team including Lisa DeFilippo, Tracy Daggett, Amanda Jantzi, Robyn Hopper, Jennifer Tshudy and Administrative Specialist Terry Nunez.
MBA Government Relations Representative Jezree Friend introduces Lenny McAllister of the Commonwealth Foundation and Pennsylvania State Rep. Bryan Cutler, PA House of Representatives Majority Whip, at the Association’s “Bacon and Business Issues — a Breakfast Briefing” event on July 11 at the MBA Conference Center in Erie.
The “Bacon and Business Issue s” briefing gave employers a chanc e to learn more about the recent Supreme Court decision in the Janus v. AFSCME case, as well as the PA state budget.
mbabizmag.com • AUGUST 2018
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