Business Magazine - December 2014

Dec ember2014

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!

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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.

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

2015 Economic Forecast: What’s Next? / Page 12

VOLUME XXVII, NUMBER 12

DECEMBER 2014

FIRM. firm (fûrm) Adjective: Constant; Steady; Securely or Solidly Fixed in Place Verb: To Give Additional Support To Synonym: MacDonald Illig

Usage: MacDonald Illig is the firm that Western Pennsylvanians have trusted for over a century.

100 State Street • Suite 700 • Erie, PA 16507 • MacDonaldIllig.com • 814-870-7600

12

December 2014

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

7 / Health Matters

3 / Spotlight

Why managers must learn how to foster a motivational work environment.

George J. Howe Company Chief Executive Officer Richard Beech, grandson of founder George J. Howe, shares his thoughts on the Grove City, Pennsylvania company’s rich tradition as a distributor of candies and freshly roasted coffee and nuts.

ANNETTE KOLSKI-ANDREACO

9 / Legal Brief Employee terminations: How good practices can help avoid bad outcomes.

MATTHEW McCULLOUGH

A S S O C I A T I O N

T R A I N I N G

12 / 2015 Economic Forecast Economists at the Economic Research Institute of Erie (ERIE), Penn State Erie’s outreach of the Sam & Irene Black School of Business, explain what may be in store for the local and national economies in 2015.

S C H E D U L E

Training That Develops Effective Leaders

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Senator Pat Toomey, R-Pennsylvania, a leader on economic, financial services and budgetary issues, shares his thoughts on several key issues for the business community in the coming year.

— Andrea Darnofall, HR Administrative – Union City, PA Parker Hannifin Corp., QCD Division

ent As a leader in professional developm for more and computer training programs rer & than 20 years — the Manufactu trainers Business Association’s expert you need deliver the knowledge and skills world. to compete in today’s business

5

20 / On the Hill

that, through our Win Strategy, “As a corporation, Parker Hannifin believes to our success. Through education empowered employees are critical will help us become a more and direction, these empowered employees business challenges and adapt to flexible organization that can quickly Manufacturer & Business Association the chose We markets. emerging exemplifies the qualities in (MBA) because we believe its training want our employees to learn. leadership and empowerment we and easily relate to the personable, yet professional, are Their trainers Parker Hannifin employees who employees’ experiences. All of the high praise for the content and have attended these workshops have them grow in their position. trainers and feel that the courses helped courses at various locations, it Also, because the MBA offered these to choose the date and location allowed our employees the flexibility needs intervened. Kudos that best fit their schedules when business to the MBA for a job well done!”

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< SPECIAL SECTION INSERT / Training Catalog Learn about the Association’s upcoming computer, HR and professional development training courses in our new quarterly Training Catalog!

DEPARTMENTS > 4 / Business Buzz 22 / HR Connection

26 / HR Q&A 29 / People Buzz

2014 Raffle Drawing for Professional Development Training It’s FREE! Register to become a new subscriber to the digital edition of the Business Magazine at www.mbabizmag.com and get a chance to win a free registration for Course I of the MBA’s regionally recognized Certified Supervisory Skills Series, three bestselling business books — The Second Curve, Blue Ocean Strategy and The Speed of Trust — plus two new coffee mugs!

Drawing to be held December 18.

December 2014 > www.mbabizmag.com > 1

SPOTLIGHT > When you think of the holiday season, it’s hard not to think of the George J. Howe Company. Since 1927, the family run business has been a distributor of candies and freshly roasted coffee and nuts. The Business Magazine recently asked Chief Executive Officer Richard Beech, grandson of founder George J. Howe, to share his thoughts on the company’s rich tradition and its outlook for 2015.

The George J. Howe Company has been a staple in northwest Pennsylvania since your grandfather first opened his grocery store in Grove City in 1917. Please share with our readers how he actually got into the coffee business and opened the present day operation in 1927.

George J. Howe opened a tiny grocery store in Grove City in 1917. In an attempt to boost his steady business, he purchased a small coffee roaster and began brewing fresh-ground coffee in the store window. Customers would receive a free pound of Howe’s unique blend if they purchased $10 worth of groceries. Soon, people were traveling from out of town and lining up for their free pound of coffee. The demand for Howe’s brew was so high that the innovative grocer sold his store and, in 1927, became a full-time coffee roaster. Four years later, he moved into a new building on Grove City’s West Main Street, which remains the site of its present operation.

Your company was founded on biblical principles and has adopted a mission of delivering fresh products, reasonable prices and excellent service. Please explain.

Our mission is the driving force behind all that we do. It informs our decision making, work environment, management style and, in particular, how we handle disappointments or mistakes. In business, challenges are inevitable, and how you handle them says a lot about the character of your business. Our founding mission shapes us and is a springboard for the future.

How has the operation changed and yet stayed the same?

We are still proud to be family owned and operated. We are still based in Grove City, right on Main Street. And we still focus on our core three product lines — coffee, candy, and nuts. Howe now reaches a far greater customer base than my grandfather would have ever dreamed, and of course, being able to sell via our website certainly was a great leap forward. But again, we are who we’ve always been — a small, family company that provides delicious treats to its customers.

George J. Howe Company roasts nuts and coffee daily and sells some hard-to-find candies from the world’s top manufacturers. Describe your products and which ones are your favorites, especially during the holidays.

Howe is known for its wide variety of fresh roasted coffees, including specialty coffees from around the world and many popular flavored coffees as well. Raw nuts arrive and are roasted in small batches right here at our plant. Cashews, almonds, pecans, peanuts — we roast them all. This line now includes plenty of nutritious nut mixes, raw nuts, seeds, trail mixes, and more. And, of course, our candies are a family favorite, with something to please every sweet tooth. From our most popular jelly beans, to jellies, chocolates, sugar free and nostalgic, we are always searching for the best candies on the market to offer our customers. Personally, I’m passionate about our coffee, having started in that area of our business 31 years ago.

You may consider yourself a small operation, located 60 miles north of Pittsburgh, but George J. Howe Company ships all over the country. Who are your primary customers and where are they found?

Our primary customers represent a broad regional base wherever our products are sold. You can find George J. Howe at grocery stores, mass merchandisers and convenience stores in 10 states.

Of course we have a very faithful customer base right here in western Pennsylvania, and our most local customers enjoy shopping in our retail store. At the same time, thanks to the success of our website, created in 2003, our customers are spread throughout the country!

How are your Howe products sold?

The majority of our sales are through a Direct Store Delivery system. Howe’s experienced staff of sales representatives and independent distributors personally service a significant percentage of the company’s accounts.

As you get ready to ring in a new year, how would you describe the company’s outlook for 2015?

To be honest, “cautiously optimistic.” While the current economic climate is improving, there is still plenty of room for growth. Our plan is to work hard, focus on our mission and keep doing what we do best … satisfying our customers’ cravings for fresh and delicious coffee, candy and nuts.

For more information about George J. Howe Company, visit www.georgehowe.com.

Contact: Karen Torres

VOL. X X VII, NO. 11 NOVEMBER 2014 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

John Krahe jkrahe@mbausa.org

Managing Editor & Senior Writer

Contributing Writers

Annette Kolski-Andreaco Matthew McCullough

Photography & Illustration

www.iStockPhoto.com

Advertising Sales

Karen Torres ktorres@mbausa.org

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

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

ON THE COVER: What’s next? Economists at the Economic Research Institute of Erie, Penn State Erie’s outreach of the Sam & Irene Black School of Business, take a look at the economic forecast for 2015. 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 2014 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.

December 2014 > www.mbabizmag.com > 3

Business Buzz PROCHEMTECH INTERNATIONAL AWARDED NEW PATENT ProChemTech International, Inc. recently announced that Chief Chemist Timothy Keister, a Certified Water Technologist and Fellow of the American Institute of Chemists, has been awarded U.S. patent, #8,834,726, “Treatment of Gas Well Hydrofracture Wastewaters.”

The patent discloses a method of treating gas well hydrofracture wastewaters by chemically removing toxic barium, as well as iron, manganese, suspended solids, and radium, producing a commodity chemical product, barite.

This technology will be assigned to Marcellus Resource Recovery, Inc., for use in proposed facilities for disposal of Marcellus gas shale wastewaters by conversion into chemical products.

Additional patents expanding the conversion of Marcellus wastewater into chemical products were pending.

For more information, visit www.prochemtech.com.

BEAUMONT’S BATTLE HIGHLIGHTED IN PLASTICS NEWS Plastics News, a leading publication for the injection molding industry, recently published an article about a case of American patent, copyright and trademark theft by a Chinese company.

The patent, copyright and trademark in question are held by Erie-based Beaumont Technologies and involve its MetFlipper® technology.

Beaumont Technologies, a plastics engineering firm and technology/service provider to the plastics industry, is working the Department of Homeland Security as the case evolves. John Beaumont, the company’s president and CEO, and John Blundy, Beaumont’s vice president of business development, met with Homeland Security officials in Washington, D.C. Michael Taylor, director of International Affairs and Trade at the Society of the Plastics Industry, Inc., is assisting with the case and also attended the meeting.

To read the article, visit www.plasticsnews.com/article/20140910/ NEWS/140919982. ‘

4 < www.mbabizmag.com < December 2014

LORD CORPORATION RECOGNIZED WITH TWO HEALTHIEST EMPLOYER AWARDS LORD Corporation received recognition for the company’s commitment to employee health and wellness by both the Dayton Business Journal for its facility in Dayton, Ohio, and the Pittsburgh Business Times, for its facilities in Cambridge Springs, Saegertown, and Erie, Pennsylvania.

The Dayton Business Journal’s fourth annual Healthiest Employer Award acknowledges companies and nonprofit businesses that strive to make wellness a priority and encourage healthier lifestyles for employees. An award presentation held August 7 at Sinclair Community College honored the LORD Dayton facility.

The Pittsburgh Business Times annual Western Pennsylvania’s Healthiest Employer Awards similarly recognize companies in the Western Pennsylvania region that make wellness a priority for employees. An award luncheon held June 5 at the Omni William Penn Hotel ranked the LORD Erie, Cambridge Springs

DEPARTMENTS > Contact: Karen Torres

and Saegertown facilities second in their company size (1,500-4,999).

Reflecting its core values, LORD Corporation maintains a strong commitment to developing a culture of wellness within the organization that will impact the long-term health and well-being of all employees, maintain a healthy and productive work force, and slow the rate of increasing health-care costs for employees.

“We are honored to receive this positive recognition in both Dayton and western Pennsylvania,” said Ed Auslander, LORD Corporation president and CEO. “Wellness is a top priority at all of our facilities, and we’re encouraged to see our wellness program upholds our mission to create ‘A Better, Healthier LORD.’ ” LORD Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance.

For more information, visit www.lord.com.

HEATRON COMPLETES EXTENSIVE PHASE ONE EXPANSION IN ERIE Heatron recently announced that the need for rapid production capacity increases due to a record-breaking sales year in 2014 led to an expansion at its Erie, Pennsylvania, production facility.

The expansion, which broke ground in March 2014, led to a 30-percent increase in square footage as well as new state-ofthe-art equipment and 100 additional high quality jobs for the Erie region. Heatron’s Erie facility designs and tests thick film heaters and hybrid circuit boards as well as handling the manufacturing for LED lighting, thick film heaters and hybrid circuit boards.

According to the company, Heatron has experienced tremendous growth since establishing a presence in Erie in 2002. With the completion of Phase I construction in September, plans are now under way for Phase II, focusing on interior remodeling for improved employee facilities and expanded engineering and quality management space.

Completed in just six months, the expansion provides additional space for engineering services, including prototyping and analytical instrumentation, and an increased footprint for assembly. Additionally, the company will experience increased surface mount technology automation for thick film heaters, hybrid circuit boards and LED lighting modules.

Heatron is an ISO 9001:2008 registered company service two core business units — custom heating elements and LED integration. Founded in 1977, the company works directly with OEMs to develop custom heating and LED lighting components. Heatron is headquartered in Leavenworth, Kansas, with additional locations in Erie, and Chicago, Illinois.

For more information on Heatron, visit www.heatron.com.

THE MOST IMPORTANT STEP FOR ANY GROWING COMPANY IS THE NEXT ONE. No two businesses take the same path and each one has a different definition of success. But the one thing all growing companies have in common is a next step. First National Bank exists to help you reach that next level — however high your sights are set. Our long-term focus on and commitment to our region’s economy make us a knowledgeable partner with a reputation for building prosperous relationships.

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Health Matters

EDITORIAL > By Annette Kolski-Andreaco

Managers Must Learn to Foster a Motivational Work Environment All supervisors, new or experienced, realize that the task of knowing how best to motivate employees is a major challenge. Yet, motivating employees is an important part of the supervisor’s role. What many supervisors might not know is that there are skills that managers can be taught to help motivate employees and create greater employee engagement in the workplace.

Motivated employees are engaged employees. Promoting employee engagement is the key role for managers and a distinct function.

Engaged employees advance an organization’s goals, which is good for the organization as well as the employee.

The Manager’s Role Managers play the most important role in promoting employee engagement and their participation is much needed. Studies have shown that when employees are engaged they find their work challenging and absorbing. They look at their work environment as being supportive of their individual aspirations. However, fewer than 30 percent of working Americans are considered engaged employees.

Surveys reveal that employees have three universal needs — respect, positive relationships and personal development. Managers need to understand and recognize these needs and then find creative ways to help employees experience them.

Internal Motivation According to author Daniel Pink’s Drive: The Surprising Truth About What Motivates Us, these are the three components of internal motivation: • Mastery • Autonomy • Purpose.

When a work environment through the manager-employee relationship allows for the development of mastery, autonomy, and purpose, internal motivation often results.

An important asset to help managers to learn how to create positive engagement among their employees can be employee assistance programs (EAPs). EAP professionals consult with managers at all levels to assess the issues and suggest actions that have the best chance of being effective.

Supporting Employees Managers can support and encourage employees in three important ways: • Demonstrate, in word and deed, that the employee’s contributions are valued.

• Connect the employee to the team and the organization.

• Be on the lookout for opportunities that enable employees to grow, innovate, and apply new ideas.

Supervisors can show support for employees in creative ways: • Presume that each employee is competent and treat him or her as such.

• Help employees identify individual goals and show support in achieving them.

• Recognize and discuss how individual goals can align with organizational goals.

• Stay connected with employees by showing interest in their lives.

• Find a way to express appreciation for people’s skills and work.

• Acknowledge an employee’s achievements and progress every day.

For more information about LifeSolutions, visit www.lifesolutionsforyou.com.

Annette Kolski-Andreaco is manager, Account Services, for LifeSolutions, an employee assistance program (EAP) that is part of UPMC WorkPartners’ suite of health and productivity solutions and an affiliated company of the UPMC Insurance Services Division. Other affiliated Insurance Services Division companies also include UPMC Health Plan, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and offer a full range of insurance programs and products.

December 2014 > www.mbabizmag.com > 7

â&#x20AC;&#x153;May your life be filled with joy and happiness during this Holiday season and may each new day bring you moments to cherish.â&#x20AC;?

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Legal Brief

EDITORIAL > By Matthew W. McCullough

Employee Terminations: Good Practices Help Avoid Bad Outcomes Terminating an employee is difficult but at times necessary. Terminations are disruptive, costly and often emotionally difficult. Unfortunately, terminations also produce lawsuits. Although some employee lawsuits cannot be avoided, these six good practices will reduce the chance of a lawsuit and maximize the probability of success in the event of a lawsuit.

Good Hiring Practices It all starts with good hiring practices.

Hiring the right person requires thoroughly vetting an applicant’s resume, contacting references, conducting an effective interview and, in appropriate situations, conducting a more comprehensive background check. At-will status should be clearly noted in the employment application, offer letter, and any written employment agreement. Once hired, new employee orientation should include a careful review of the policies and procedures and clear communication of expectations for job performance and workplace behavior.

Documentation Nothing is more important than clear and accurate documentation of all aspects of the employment relationship, including performance evaluations, counseling, discipline and termination. Policies and procedures must be clear, updated and uniformly applied, and receipt acknowledged in writing by the employee.

Performance evaluations must accurately describe positive and negative performance.

Records of counseling, improvement plans and discipline must be accurate and acknowledged by the employee.

Draft written communications, particularly emails, with care. Say what you mean in plain language, not code. One carelessly chosen word or off-the-cuff remark can damage an otherwise solid defense.

A good rule of thumb for all written communications is to ask, “Would I be comfortable with a juror reading this document?”

Do Not Make Hasty Decisions A termination decision must be thoughtful and deliberate. Avoid heat-of-themoment decisions. Consider suspension while conducting an investigation. Get all sides of the story. Look for red flags, such as protected classifications or recent complaints. Make sure that the reasons for termination are supported by the facts. Ensure that the “punishment fits the crime,” that applicable policies or rules of conduct have been uniformly applied and enforced, and that progressive discipline has been followed, if applicable. Decisionmakers should ask, “How will I explain my decision to a jury?” If the reason cannot be clearly articulated before taking action, rethink the situation.

Tell The Truth: We tell our children, “Honesty is the best policy.” This is good legal advice, too.

Unfortunately, employers sometimes avoid confrontation or uncomfortable situations by giving overly generous performance evaluations or understating (even misstating) the reason for termination.

If the reason for termination is poor performance, do not characterize it as a “layoff.” Inconsistent, inaccurate or changing explanations permit an inference that the real reason was unlawful.

Conducting the Termination Determine what the employee will be told before beginning the termination meeting. Communicate the decision honestly and succinctly. Treat the employee with dignity but do not convey regret or apologies. Conduct the termination privately, preferably at the end of the day, and keep it short and to the point.

Do not engage in argument or debate. A witness must attend, and detailed notes made immediately.

hostility and may cause the employee to consult a lawyer. Lack of preparation can produce an incomplete or inaccurate record, which may be problematic if further litigation occurs.

The same is true for EEOC and PHRC complaints. Employers that handle administrative proceedings without consulting knowledgeable employment counsel risk mistakes, which may negatively impact subsequent litigation. Thoroughly investigate the complaint. Responses should be comprehensive, clearly articulate the legitimate business reasons for the termination, and be supported with documentation. Above all, information must be accurate, consistent and carefully reviewed by all involved before it is submitted. Inaccurate or incomplete statements at this stage can be devastating at trial.

There is no panacea to avoid employee lawsuits. But following these and other sound practices will help avoid mistakes that invite lawsuits and contribute to bad results.

For more information about employee terminations, contact Matt McCullough at MacDonald, Illig, Jones & Britton, LLP at 814/870-7602 or mmccullough@mijb.com.

Matthew W. McCullough is a senior partner with the law firm of MacDonald, Illig, Jones & Britton LLP, where he is a member of the Labor and Employment, Commercial Litigation and Insurance Defense Departments.

His practice emphasizes labor and employment advice and litigation for employers, as well as commercial litigation.

Unemployment and EEOC Proceedings Employers frequently contest unemployment compensation claims on principle, sometimes with unintended consequences. Contesting a claim increases December 2014 > www.mbabizmag.com > 9

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2015

E C O FORE WHAT’

Are we better off than where we were a year ago? Is the glass half empty or half full? What’s in store for the coming year?

Well, the answer to those questions may be a sliver of a silver lining when it comes to the country’s continued economic recovery.

Economists at the Economic Research Institute of Erie (ERIE), Penn State Erie’s outreach of the Sam & Irene Black School of Business, say the U.S. economy is expected to strengthen at a modest pace in 2015. In fact, forecasts by many of the world’s leading economic research institutions, they say, indicate that we should see a pickup of anywhere from 3- to 3.1-percent growth.

James Kurre, Ph.D., director emeritus at ERIE, explains that “one major reason for the anticipated improvement in 2015 — compared to 2014’s expected real GDP growth rate of 2.1 percent — is an expected improvement in the U.S. labor market, with the national unemployment rate continuing to fall and job growth picking up some momentum.”

Federal Reserve officials already had projected the jobless rate falling more than previously thought (receding to 6 percent or 6.1 percent by year-end and then to the mid-5 percent range and low-5 percent range in 2015).

Still, experts suggest we still may be a few years away from regaining the ground lost during the 2007-2009 downturn.

According to Kurre, the current recovery was 64 months long in October 2014 — about six months longer than the average recovery since World War II. However, the three most recent expansions lasted an average of 95 months. By that standard, he says, it wouldn’t be surprising for the recovery to continue for some time yet, considering that this expansion has been rather anemic in terms of job growth.

Only recently did the country reach its previous employment peak — which hasn’t hit in Erie yet.

“The local economy is hardly the hard-charging stallion we’d like it to be — more like a torpid tortoise,” he says. “But then, the tortoise did beat the hare, didn’t he? Still, we can’t afford to put our future on hold waiting for that tortoise to plod along.”

Kenneth Louie, Ph.D., Kurre’s colleague and successor at ERIE, remains optimistic because there are positive indications that the U.S. economy is continuing to recover from the Great Recession.

Along with the slowly improving labor market, gradual increases in aggregate demand, he says, should provide a lift for the economy.

Louie points to an example used in a recent release of the ERIE’s Leading Index (ELI), a group of eight economic indicators designed to predict changes in the Erie economy. “The U.S. macroeconomy is perhaps like a little child trying very hard to reach for the cookie jar: the potential rewards are great, in terms of higher levels of output, income and employment, but we have to keep our eyes on that 12 < www.mbabizmag.com < December 2014

‘cookie jar’ and not let up in terms of stretching our hard work and ingenuity as far as they will go,” he explains. “However, we also need to continue to monitor the ‘empty’ half of the glass and not ignore weak spots that may signal future economic distress.”

For example, Louie says that despite the recent declines in the official unemployment rate, an alternative measure of labor market slackness that includes discouraged and marginally attached workers, as well as those who are working only part time for economic reasons, is almost 12 percent. Other major economic indicators to watch include inflation and the growth in private industry compensation, both of which have been fairly modest over the last year.

Growing Optimism

Still, recent reports show there is a growing sense of optimism about a stronger recovery from business owners across Pennsylvania.

According to PNC Financial Services Group’s fall economic survey, more than three out of four owners of small and medium-sized businesses say they are optimistic about their firms’ prospects over the next six months (78 percent compared to 85 percent six months ago and 79 percent last year).

Kurre adds that, according to the U.S. Bureau of Economic Analysis, Pennsylvania’s real GDP is nearly 3.5 percent higher than it was during the state’s previous peak of 2008 and 5.7 percent higher than the 2009 trough.

“Although employment growth isn’t as strong as we’d like,” he says, “we are seeing increases in output, suggesting that businesses are finding ways to increase productivity despite hiring challenges. That’s good news.”

Louie isn’t surprised by PNC’s findings, suggesting that the responses reflect the gradual improvement that we have been seeing in the aggregate U.S. economy.

“Indeed, the current unemployment rate is lower (5.7 percent) in Pennsylvania than it is in the nation as a whole (5.9 percent), and it has fallen faster in Pennsylvania (1.6 percentage points) than in the U.S. (1.3 percentage points) since September 2013,” he says.

“However, total nonfarm jobs in the Commonwealth have actually decreased during the last three months, although they have increased compared to a year ago. Perhaps that explains the slight dip in the percent expressing optimism compared to six months ago.”

PNC’s survey results also show that four in 10 companies plan to raise customer prices (possibly 3 to 4 percent hikes) — a possible signal that the economic recovery is speeding up.

According to Kurre, rising prices can signal demand growing faster than supply — and that would clearly mean a growing economy.

“It’s not unusual for firms to find it harder to get trained workers as a recovery proceeds and all the better/trained workers are already

N O M I C E C A S T: ’S NEXT? rehired,” he says. “That scenario would fit with our employment levels recently surpassing their pre-recession peaks.”

Louie also agrees that sustained price increases usually do indicate a speeding up of the economic recovery. And, an “overheated” economy is likely to generate higher rates of inflation. The Fed’s longrun objective, he notes, is a 2-percent inflation rate.

Additionally, PNC’s economic report shows that 30 percent of employers who responded to its survey plan to raise wages. Of those, three in five are contemplating raises of at least 3 percent.

According to Kurre, rising wages fit squarely with the idea of a growing economy where demand is outstripping supply and employers have to reach more deeply into the labor pool — increasing wages to attract the number and quality of workers they now need.

But, he cautions, economists also have seen a disturbing trend in the significant decreases in the labor force participation rate, both in Erie and nationwide. Consequently, Kurre says, that restricts the supply of workers below what would otherwise be expected and can explain rising wages even if demand isn’t on the rise. This pattern would mean higher labor costs even in the face of lackluster demand growth.

“The current picture is probably a combination of both of those forces,” he says.

In fact, according to results from the Manufacturer & Business Association’s (MBA) Quarterly Economic Snapshot Survey, in the first quarter of the year, the majority of MBA members across the region expected their business in the next three months to pick up (57.3 percent). In the second quarter and third quarter, however, that “pick up” dropped to 50.0 percent and 48.15 percent, respectively.

Louie suggests one possible reason may be that in the first quarter, many business owners had not anticipated the extent of the substantial negative impact on economic growth caused by the severe winter weather.

“The good news is that growth in the second quarter is expected to be quite robust, perhaps as high as 4.6 percent, according to the BEA (Bureau of Economic Analysis),” he says. “Hopefully, this will restore some of the earlier optimism.”

In the area of employee benefits, MBA survey results show that a vast majority of Association members have decided to take advantage of their health insurance carrier’s early renewal options (68.2 percent in the first quarter; 67.65 percent in the second quarter; and 69.23 percent in the third quarter).

According to Kurre, this suggests that employers are expecting to see health-care costs rise, so they desire to lock in the current insurance rates. “You don’t need a Ph.D. in economics to think that uncertainty

Meet the New Director of ERIE Kenneth Louie, Ph.D., a longtime associate professor of economics at Penn State Erie, the Behrend College, recently succeeded Jim Kurre as the director of the Economic Research Institute of Erie, which was established more than 30 years ago as a reliable resource for economic data and analysis in the Erie region.

Here are a few more interesting facts about him:

Kenneth Louie, Ph.D.

Birthplace: Hong Kong Education: B.A. (economics), Northwestern University, M.S., Ph.D. (economics), University of Illinois at Urbana – Champaign Experience: • Joined the economics faculty at Penn State Behrend in 1984 • Program chair of International Business from 2001 to 2012 • Research associate at ERIE from 1990 to 2006 Honors and Distinctions: • Fulbright scholar to China in 1998 • Visiting professor at Johns Hopkins-Nanjing Center for Chinese and American Studies, 1996 to 1997 and 2006 to 2008 • Council of Fellows Excellence in Teaching Award in 1993 • Guy W. Wilson Award for Excellence in Academic Advising in 1991 Kurre is now director emeritus of the Economic Research Institute of Erie at Penn State Behrend, having retired this year after 37 years on the faculty. He is an award-winning teacher, adviser and mentor, and continues his active participation in the local community.

James Kurre, Ph.D.

associated with ObamaCare has more than a little to do with that,” he says. “The booming health-care employment growth of a few years ago has certainly slowed dramatically, despite the increasing numbers of Baby Boomers who have an increasing demand for all kinds of medical services.”

“Again,” adds Kurre, “government intervention in health-care markets could provide part of the cause for that.”

Louie, on the other hand, doesn’t think the popularity of the early renewal option necessarily reflects possible concerns with ObamaCare. “Instead,” he notes, “it probably reflects a rational decision by business owners to postpone the mandated benefit and other changes (and, therefore, higher costs) resulting from the Patient Protection and Affordable Care Act (PPACA). “

The Local Picture

Recently, ERIE marked the fourth anniversary of its ERIE Leading Index, providing a snapshot of where Erie is fairing in relation to the rest of the nation.

First, notes Louie, the local economy is still somewhat fragile, trying to regain many of the jobs that were lost in the recent recession.

Second, since ELI is a leading index, it’s a good sign that it is not signaling a turning point in Erie employment. Finally, since the Erie economy tends to lag the U.S. economy, continued improvement in the national economy is likely to translate into improved local economic conditions. > December 2014 > www.mbabizmag.com > 13

The MBA’s 2014 Quarterly Economic Snapshot Survey Results for the Third Quarter Decision makers and business owners provided their input on the state of the economy and operation of their company over the past three months.

Looking back three months, has your business: • Picked up – 42.31 percent • Stayed the same – 28.85 percent • Slowed down – 28.85 percent Looking ahead three months, do you expect your business to: • Pick up – 48.15 percent • Slow down – 15.38 percent • No change – 38.46 percent Did your company take advantage of your health insurance carrier’s early renewal option for 2014?

• Yes – 69.23 percent • No – 30.77 percent Looking back three months, given the recent events in the economy and financial markets, what changes have you made to your compensation packages?

• No change – 92 percent • Salary freezes – 8 percent • Salary reduction – 0 percent • Reduced employer 401(k) – 0 percent • 403(b) match/Other incentive program – 0 percent Looking ahead three months, do you expect your employment levels to: • Increase – 25 percent • Decrease – 5.77 percent • Stay the same – 69.23 percent To view all the survey results, visit the Members Only section on www.mbausa.org.

“Slow growth is better than no growth, certainly, but faster growth is even better than slow growth,” adds Kurre. “We need to do better.

And we can do that in part by a greater willingness to adapt locally and recognize that economic growth is often not a free lunch. It’s necessary to recognize some tradeoffs and that risks are necessary to get the rewards… . Innovation and entrepreneurship are crucial components of all that, and these are areas where we’re lagging the nation.”

Part of the problem, Kurre states, is that Erie has a significantly greater share of its income coming from transfer payments (government funding) of one type or another, compared to the nation. And Erie has a significantly smaller share of its income coming from proprietor’s income.

In terms of unemployment, however, Erie is somewhat comparable to the state and the nation.

Kurre notes that the booming health-care employment growth of a few years ago has slowed dramatically, despite the increasing numbers of Baby Boomers who have an increasing demand for all kinds of medical services. Yet the local higher education sector has continued to grow, despite difficult demographic trends.

14 < www.mbabizmag.com < December 2014

According to Kurre, local colleges have been successful at attracting new student-customers from abroad, helping to bring new money into the Erie economy, even if it’s a small sector. “The fact that we’re attracting (mostly) young people from other places gives local firms a chance to work with talented new interns and help train their next work force,” he says. “That is very encouraging.”

On the flip side, Louie expects the manufacturing sector locally will continue to struggle somewhat. Other sectors locally that have lost jobs during the past year, and which are likely to face continued pressure, are: retail trade; information; professional and business services; and education and health services.

However, local sectors that have enjoyed the highest rate of job growth during the past year include: mining, logging and construction (8.7 percent); state government (7.9 percent); transportation, warehousing and utilities (6.9 percent); government (4.8 percent); and leisure and hospitality (2.7 percent).

“Given the continued evolution and restructuring of the local economy,” states Louie, “these sectors are likely to experience improvement sooner than others.”

Worth Noting Still, there are a number of socioeconomic factors that may have an impact on 2015’s economic growth, including, but not limited to, the 2016 presidential race, retiring Baby Boomers, ObamaCare, recent Ebola outbreak and ongoing threats of terrorism.

“Unfortunately,” adds Louie, “some of these challenges have highly unpredictable outcomes, so that it is very difficult to predict their ultimate effects.”

For example, he says, it remains to be seen how the Ebola outbreak or the ISIS threat will eventually play out or whether ObamaCare will deliver on all of its promised benefits. The only thing that is certain is that many of these challenges will involve substantial cost to the economy and society.

“Whether it’s the financial strain on Social Security and Medicare due to an aging Baby Boomer population, or increased government expenditures to fight and prevent the Ebola and ISIS threats, or health-care costs that continue to spiral upward, competition over economic resources will be intensified,” explains Louie. “Although the presidential race isn’t until 2016, anticipation of these challenges may play a decisive role in influencing economic decisions in 2015, as well as who eventually gets elected.”

Louie suggests one additional key area or issue to keep our eyes on in 2015 is the global economy — such as the recent slowdown of the emerging economies and the potential risk of a “triple-dip” recession in the euro zone. Kurre, meanwhile, is focused on behavior of the labor force participation rate (LFPR).

“Economists are split about the explanation for its alarming drop during this recession,” he says. “Is it merely a temporary response to the Great Recession bound to bounce back eventually? Or is it the entering wedge of a new — and disturbing — trend in the LFPR, with a smaller percentage of Americans willing and able to work?

Those result in profoundly different scenarios for America’s economy in the future.”

Kurre and Louie will be presenting their outlook for 2015 at the Association’s Eggs ‘n’ Issues Economic Forecast briefing on December 17 at the MBA in Erie. To register, visit www.mbausa.org. For the most current issue of ELI, visit www.pserie.psu.edu/eriedata/.

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OntheHill Q&A with Senator Pat Toomey

Pat Toomey, R-Pennsylvania, was elected to the U.S. Senate from Pennsylvania on a platform of limited government, economic and job growth, and restoring fiscal responsibility.

Since taking office in 2011, he has distinguished himself as a leader on economic, financial services and budgetary issues. Recently, the Business Magazine spoke to Senator Toomey to hear his thoughts on several key issues for the business community.

Seventy nine senators, including 34 Democrats, backed a non-binding vote last year to repeal the health-care law’s tax on medical devices — a 2.3-percent tax on the sale of any taxable medical device (e.g., artificial hips or pacemakers) that is paid by medical device manufacturers and importers. Why do you support its repeal, how likely is it, and what is the potential impact?

The reason I support repeal of this tax is because it’s doing a lot of harm to Pennsylvania and to the United States. This, as you pointed out, is the tax on the sales of medical devices, irrespective of whether a medical device company is making a profit. The average profit margin in the industry is less than 5 percent of total sales. Imposing a 2.3-percent tax on total sales wipes out basically half of all the profits before the income tax takes so much of what’s left.

What’s ended up happening is one of the most vibrant, successful industries in America — and great manufacturing companies that make wonderful high-tech products that help improve the quality and the length of our lives — has been really knocked on its heels. Layoffs have been forced.

New hiring is not happening. Expansion of companies can’t happen because of this tax. These are the reasons why I think it’s doing so much damage. It was never a good idea and we should repeal it.

How likely is it? You pointed out a very important fact.

Seventy nine senators voted in principle to repeal the tax but that was a non-binding vote and ever since then Senator Reid has refused to allow a vote on the Senate floor. The House has repeatedly passed legislation to repeal the medical device tax. I know the votes are there in the Senate; Senator Reid just doesn’t let it happen.

With control in Congress, Republicans will definitely schedule a vote and pass a repeal of this tax. The House will still support the repeal of it and we’ll send it to the president’s desk to see what he decides to do... .

At the end of the day, the impact is job growth in the medical device industry. Everything from people who make bandages to syringes to sophisticated tools that surgeons use to perform surgery; there’s a tremendous variety of wonderful products made in Pennsylvania, and I want to see this industry thriving and this tax prevents that.

If we as a nation want to tackle our country’s long-term budget challenges and improve the competitiveness of U.S. businesses, we need to address the broken tax system. What do you propose to fix the problem? What must Congress do to get tax reform right in the long term?

The U.S. business tax system is the least competitive in the world, certainly among major industrialized countries. And 20 < www.mbabizmag.com < December 2014

the most egregious problem is we have such a high corporate income-tax rate. We tax our business income at 35 percent at the federal level and then, in most states, we add another double-percentage point, so that, effectively, on average, across the country, American companies are paying 40 percent of their income in taxes. Most of our competitors around the world collect maybe something on the order of 20 percent in taxes. That puts us at a terrible competitive disadvantage. It means our workers can’t compete. Our businesses can’t compete as effectively as they could and so it’s really long overdue.

I have supported a complete overhaul of the system: Lowering marginal rates; eliminating some of the giveaways, tax credits and the special favors that certain industries get in the tax code. If we did this, we’d have a surge of economic growth. The growth would result in more revenue to the federal government. Most importantly, we’d be more competitive and our businesses would be able to hire more workers. Unfortunately, this has never been a priority of the president and, ultimately, tax reform requires the president’s signature.

My hope is that with Republicans in control of the Senate we’ll be able to use the procedural devices available to us to advance tax reform and encourage the president, induce the president, to work with us for the first time in his administration so that we could actually get it done.

You were a leading sponsor of the JOBS Act (the Jumpstart Our Business Startups Act) signed into law in April 2012, which is intended to encourage funding of U.S. small businesses by easing various securities regulations. A recent Forbes article states that the JOBS Act has made a considerable difference in the booming IPO market, with U.S. exchanges trending toward their strongest activity in more than a decade.

What are your thoughts on this news and the impact of the law two years later?

This is very exciting and very gratifying because we observed several years ago that many very successful small and mediumsized companies that were growing were at a stage in their development where they needed to do a public offering. They needed to become public companies, and raise the capital that would allow them to expand further. But they weren’t doing it because the regulatory burden and the cost that the government was imposing on the process of going public were just way too onerous. My legislation streamlined the process.

For this category of companies, which we call emerginggrowth companies — small and medium-sized rapidly growing companies — we created a streamlined process where they could go public without incurring all the costs and

DEPARTMENTS > Contact: Lori Joint the hassles that had really prevented the capital-raising that these companies needed in the past.

The very exciting thing is that it is exactly this category of companies that are driving the huge boom that we’ve seen in the last year or two in Initial public offerings in companies going public. In fact, 84 percent of all IPOs so far this year have been this category of companies taking advantage of the JOBS Act to raise the capital so that they can grow and hire more workers. I’m really thrilled that this is working exactly as we had hoped. I think that there’s more we can do in this space but this has been a very encouraging development.

What more needs to be done, such as regulation and energy, to improve the business climate in the United States?

My view is this: In the last year, this administration has launched an absolutely unprecedented avalanche of new regulations — huge, enormously costly and problematic regulations. ObamaCare is the biggest example. The DoddFrank is a really egregious example. And an EPA that has shut down the coal industry and done enormous damage to industrial America, generally.

All of these have had a cumulative weight that is holding back our economy. I think this avalanche of new regulation easily explains why we have had such a weak recovery after the last recession instead of the strong recovery that usually follows a serious recession. Again, the answer here is having the tools in Congress to push back on the excesses. With Republicans in control of the Senate, we’ll be able to offer amendments to push back on the EPA when they’re trying to reach beyond what authority statutes give them and so that we can push back on some of the excesses on Dodd-Frank that’s preventing

small banks from lending money to small businesses in their communities. Of course, we need to completely repeal ObamaCare, but until President Obama leaves office that won’t be possible. In the meantime, I’d at least like to repeal some of the more egregious faults in the bill like the medical device tax and other things.

There’s no question too much regulation is holding us back.

I hope we’ll be able to effectively diminish that regulatory burden soon.

In regard to energy, do you have any input on that area as well?

The big story in energy is the administration has been shutting down the coal industry, which is very problematic for Pennsylvania and, frankly, for our economy in general.

We still derive more than a third of all of our electricity from coal because it is affordable, reliable, and the price is not volatile. It’s local. It’s a very important resource and we’ve made enormous progress in cleaning up the emissions that come from coal but the administration insists on shutting that down. That’s the bad news story.

The good news story is the tremendous benefits of these huge natural gas discoveries. Pennsylvania is now the No. 2 state in America in the production of natural gas. We’re on our way to becoming No. 1, which is stunning. I mean we were nowhere on the map 10 years ago and, by the end of next year, we’ll be the No. 1 producer of natural gas. This has the potential to make us energy independent for the first time in our lifetime.

To actually have North America provide all the energy that we need and for America to become an exporter of energy, I think that’s fantastic for our economy, for our national security, for geopolitics, for consumers’ wallets.

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HR Connection SURVEY: HIRING FOR NEW GRADS EXPECTED TO RISE IN 2015 A new survey from Michigan State University has some great news for college students who will be graduating with bachelor’s degrees in 2015: Hiring for new graduates is expected to jump by 16 percent next year. In the poll, 5,700 employers were asked about plans for students who will finish school in the spring of 2015, and the numbers could go even higher, says Phil Gardner, director of Michigan State’s College Employment Research Institute (CERI), which conducted the survey.

“Employers are recruiting new college graduates at levels not seen since the dot-com frenzy of 1999-2000,” said Gardner, in a news release.

“Competition for qualified candidates is escalating to a degree rarely seen in the past 10 years.”

The biggest growth is projected in information services, where hiring is expected to be up 51 percent over last year. Also seeing big projected growth are finance and insurance, up 31 percent.

The survey shows the job market is projected to be strong for nearly all new degree holders. Those with an MBA degree lead the way with an estimated 38-percent spike in hiring, followed by doctorate (up 20 percent), associate’s (up 19 percent), bachelor’s (up 16 percent) and professional (up 8 percent). Hiring for other new master’s degree graduates should be stagnant.

OSHA OFFERS TIPS TO PROTECT WORKERS IN COLD ENVIRONMENTS Learning how to prepare for work during the winter, protect workers from the cold and other hazards that can cause illnesses, injuries or fatalities, is essential to maintaining a safe work environment and completing tasks successfully.

OSHA’s Cold Stress Card provides a reference guide and recommendations to combat and prevent many illnesses and injuries. Available in English and Spanish, this laminated fold-up card is free to employers, workers and the public.

Tips include: • Recognize the environmental and workplace conditions that may be dangerous.

• Learn the signs and symptoms of cold-induced illnesses and injuries and what to do to help workers.

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• Be sure workers in extreme conditions take a frequent short break in warm dry shelters to allow their bodies to warm up.

• Use the buddy system — work in pairs so that one worker can recognize danger signs.

• Remember, workers face increased risks when they take certain medications, are in poor physical condition or suffer from illnesses such as diabetes, hypertension or cardiovascular disease.

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Voluntary Benefits Can Help Bridge Coverage Gap With the increasing premiums and search for the right deductibles, co-pays and co-insurance to offer their employees, employers are looking to voluntary benefits to enhance their offerings to their employees.

The value of medical, dental and vision plans in this competitive world of benefits has been well proven to attract and retain good employees. Voluntary benefits are less understood.

Statistics show that more than 60 percent of bankruptcy claims are due to medical bills. Many of these bankruptcy clients had medical insurance. What they may have lacked is financial protection benefits like life insurance, which protects their assets and disability insurance, which protects their paycheck. They also may not have had access to critical illness or accident insurance.

These latter benefits pay out upon an emergency situation.

The medical insurance benefits pay the physician or facility and the voluntary benefits pay the employee. In most cases, these benefits are also portable since they are employee paid and belong to the employee, not the group.

Most critical illness and accident plans pay out lump sum amounts that can be used to pay costs of treatment, make up for lost income, help to pay household bills or mortgages and other incidentals. Many of these benefits interact well with wellness plans and may even pay a benefit if certain elements of wellness are completed. These transactions can be completely paperless and coordinate with banking information for making direct deposits.

Today, many large and mid-size employers offer up to five voluntary benefits. In 2015, according to the Employee Benefit News publication, voluntary benefits will be about a $7-billion industry. Now to supplement the medical health-care offering, even smaller employees are looking to offer this employee-paid benefit to their employees.

For more information on voluntary benefits, contact me at 814/833-3200 or 800/815-2660.

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

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HR Q&A MY EMPLOYEE IS CONTINUING TO HAVE CREDITORS CALL MY PLACE OF EMPLOYMENT, WHAT CAN I DO? Sometimes, employees get into debt that they aren’t able to immediately pay off, and they may receive collection calls at work. Congress has anticipated this situation, and created the Debt Collection Practices Act. In particular, §1692c, Communication in connection with debt collection, includes the following provision.

“Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt.”

In other words, if an employee is getting harassing calls from a debt collection agency, and the employee informs the agency that the company policy prohibits the employee from taking such calls at work, the agency is required by law to stop calling the person at work.

Note, however, that the Act applies primarily to third-party collection

agencies, not to organizations attempting to collect their own debts.

For example, the law does not apply to a property manager who is attempting to collect a tenant’s overdue rent, or to a utility attempting to collect an overdue electric bill.

“shorting” the employees or unlawfully trying to avoid paying overtime.

Note that the regulation applies to employees who “voluntarily” arrive early or leave late, and “do not engage in work.”

IF EMPLOYEES ARRIVE EARLY OR STAY LATE, CAN WE REMOVE THOSE HOURS FROM THEIR TIMECARDS? If the employees are not actually working, you can remove those hours.

The applicable federal regulation (29 CFR §785.48, Use of time clocks) states, “employees who voluntarily come in before their regular starting time or remain after their closing time, do not have to be paid for such periods provided, of course, that they do not engage in any work. Their early or late clock punching may be disregarded.”

Although this time can be disregarded, the regulation warns that your records should reflect the hours worked as accurately as possible. Making regular changes to timecards may create the impression that the company is

IF AN EMPLOYEE IS ABSENT FOR A WORK-RELATED INJURY, CAN WE DESIGNATE THE TIME AS FMLA? The FMLA specifically recognizes that a serious health condition may result from an injury on or off the job, so a work-related injury can qualify for FMLA. Remember that FMLA leave is a legal entitlement, not an optional benefit, and employers are responsible for recognizing and designating leave under FMLA. An employer’s failure to provide FMLA protections will not prevent an employee from claiming those protections, even if the employee must file a lawsuit to get them. Also, if the company does not designate FMLA appropriately, the employee may still have those 12 weeks available for future use. So any absence that qualifies for FMLA should be designated and counted against the employee’s annual entitlement.

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DEPARTMENTS > Contact: Stacey Bruce

Biggest Salary Trends, Hot Skills For 2015 The 2015 Salary Guides from Robert Half show that U.S. starting salaries for professional occupations are projected to increase an average of 3.8 percent next year.

The largest expected gains in salaries among all fields researched are in technology; with an anticipated 5.7-percent overall increase in the average starting salary for newly hired information technology (IT) workers.

Accounting and finance and creative and marketing professionals can expect starting salaries to rise an average of 3.5 percent, according to the research.

According to the MBAâ&#x20AC;&#x2122;s 2015 Annual Salary Increase Survey, professional occupations are projected to increase 2.4 percent next year in northwest Pennsylvania. Executive positions are projected at 2 percent; clerical and technical positions are at 2.75 percent; and production, maintenance and service are projected at 2.2 percent. These increases are slightly below the national findings from Robert Half.

Here is an overview of findings from the 2015 Salary Guides: Accounting and Finance Average starting salaries for accounting and finance professionals in the United States

are forecast to rise 3.5 percent next year.

Staff accountants, senior financial analysts, and business systems analysts are in strong demand, and these professionals can expect to see higher than average salary increases.

Technology Overall, base compensation for IT professionals in the United States is expected to increase 5.7 percent in the coming year. Mobile, security and big data will be three drivers for technology hiring in 2015.

Mobile applications developers can expect the highest salary increases among all technology roles.

Creative and Marketing Professionals in creative fields in the United States can expect average starting salary gains of 3.5 percent in 2015. Growth in the digital space, particularly mobile, is driving the demand for professionals such as digital marketing strategists and user-experience specialists. Businesses also seek content strategists, web designers and front-end web developers.

Legal In the legal field, U.S. starting salaries are anticipated to rise 3 percent, on average, in the coming year. Law firms are seeking

mid- and senior-level lawyers in highgrowth practice areas, such as litigation, general business and commercial law, and intellectual property. Paralegals also are in high demand by companies and law firms, and those with specialized skill sets can expect higher starting compensation.

Administrative and Office Support Overall starting salaries for administrative professionals in the United States are expected to rise 3.4 percent in 2015.

Demand for skilled executive and administrative assistants remains strong.

There continues to be a need for support staff in health care, human resources and customer service.

For more information about the Associationâ&#x20AC;&#x2122;s 2015 Annual Salary Increase Survey, contact me at 814/833-3200 or 800/815-2660.

Stacey Bruce is the director of HR Services at the Manufacturer & Business Association.

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December 2014 > www.mbabizmag.com > 27

automotive technologies Business & Management Computer Training Commercial Truck Driver ConstruCtion trades Drafting & Design

The Regional Career & Technical Center is a leading provider of quality career and technical training programs for adults.

We offer a variety of courses, affordable tuition, convenient class schedules and customized training programs.

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Industrial Technologies

Manufacturing Technologies Medical Technologies

Precision Machining

Special Interest welding

8500 Oliver Road • Erie, PA 16509

Term III classes begin the week of January 5.

Register for classes December 8 – 19.

Visit www.ects.org/rctc for a complete course schedule or call 814.464.8601 for more information.

The RCTC is a division of the Erie County Technical School, an equal opportunity educational institution.

Make a list. Check it twice.

Forget the naughty, invite the nice.

Whether you’re planning an intimate celebration with business associates or a fun ’n festive gathering with family, friends or co-workers – we’ll make sure the holiday spirit is on full display.

So get ready to party, you’ve come to the right place!

Visit www.mbausa.org or call Norm Zymm at 814/833-3200 or 800/815-2660 to book your holiday gathering today.

28 < www.mbabizmag.com < December 2014

People Buzz BEAUMONT FOUNDER INDUCTED INTO HALL OF FAME The Plastics Pioneers Association (PPA), headquartered in McHenry, Illinois, recently inducted John Beaumont, founder and CEO of Beaumont Technologies, into their organization.

Founded in 1944, the PPA is a nonprofit organization of about 200 members, all of whom have at least 25 years of experience in plastics. The groupâ&#x20AC;&#x2122;s primary purposes are to preserve the history of plastics and nurture its future by awarding scholarships to students seeking a career in the industry and by supporting other educational programs.

Beaumont is president of Beaumont Technologies and former program chair of the Plastics Engineering Technology program at Penn State Erie, The Behrend College. He has authored several books and is the holder of seven patents with two more pending. In 2001, he founded Beaumont Technologies, which is the pioneer and world leader of in-mold rheological control technologies.

LOGISTICS PLUS INC. HIRES MARKETING EXECUTIVE Scott Frederick recently was named the new vice president of marketing for Logistics Plus Inc., a worldwide provider of freight management, global logistics and specialized business solutions.

DEPARTMENTS > Contact: Karen Torres

grant program that addresses operational needs of nonprofit organizations. He is responsible for the administration of the Urgent Request grant program and also manages the Foundations Donors Choose and Wishbook projects. Prior to joining the Foundation, Herr held the position of associate director for Community Shelter Services, where he was charged with daily oversight of all program-related operations.

Cacchione joins the Foundation as Community Impact associate. As a member of the Community Impact team, she is responsible for scheduling meetings, database entry, correspondence, process development and preparation of board meeting materials.

Prior to joining the Foundation, she held the position of administrative assistant for The Muscular Dystrophy Association.

Jackson joins the Foundation on a part-time basis as grant and accounting assistant. She assists the finance team with monthly and quarterly accounting processes, as well as grants and fund statement processing. Prior to joining the Foundation, Jackson was a fiscal specialist for the School District of the City of Erie.

Working collaboratively with the Logistics Plus offices around the world, Frederick will help develop new marketing and web strategies and refine existing ones in support of business goals and objectives.

Frederick last served with PartnerShip LLC, a Cleveland-based logistics company, where he oversaw marketing and technology initiatives, including an award-winning integrated marketing program. He brings 25 years of marketing and transportation industry experience to Logistics Plus, including prior experience working for well-known transportation organizations YRC Worldwide, YRC Regional Transportation, USF Corporation, and USF Holland.

Frederick has a bachelorâ&#x20AC;&#x2122;s degree in marketing from Ferris State University and a MBA in business and marketing from Grand Valley State University.

FOUNDATION ANNOUNCES NEW TEAM MEMBERS The Erie Community Foundation, a collection of more than 700 local charitable endowments with a market value of $215 million, recently announced the appointment of Patrick Herr, Rachel Cacchione and Kathleen Jackson to the organization.

With more than 20 years of related professional experience, Herr joins the Foundation as the director of Community Impact. In his new position, he is charged with managing the Helping Today competitive December 2014 > www.mbabizmag.com > 29

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A S S O C I A T I O N

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Training That Develops Effective Leaders “As a corporation, Parker Hannifin believes that, through our Win Strategy, empowered employees are critical to our success. Through education and direction, these empowered employees will help us become a more flexible organization that can quickly adapt to business challenges and emerging markets. We chose the Manufacturer & Business Association (MBA) because we believe its training exemplifies the qualities in leadership and empowerment we want our employees to learn.

Their trainers are professional, yet personable, and easily relate to the employees’ experiences. All of the Parker Hannifin employees who have attended these workshops have high praise for the content and trainers and feel that the courses helped them grow in their position.

Also, because the MBA offered these courses at various locations, it allowed our employees the flexibility to choose the date and location that best fit their schedules when business needs intervened. Kudos to the MBA for a job well done!”

y nion Cit U – s uane ie r Se ls ervisor D il p k u S S , s y r viso a William d Super ger Dan Tim O’Brien. a n a M Certifie t k Jawdy nager ft: Plan a le ush, Nic w, from lity Assurance M Wilbur B ierson. r, Front ro le a s s u Q re K ike P and Bud nager M Williams duates a ra M G : m ft ea le alue Str w, from Back ro Hansen, and V dy and Co

— Andrea Darnofall, HR Administrative Parker Hannifin Corp., QCD Division – Union City, PA

As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

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Professional Development

Professional Development

Certified Supervisory Skills Series Course I Course II (Butler) Course II (Meadville) Course III Course III (Butler) Price: $295 Members, $415 Nonmembers

1/21 and 1/28 1/7 and 1/8 1/15 and 1/22 1/13 and 1/20 1/28 and 1/29

Leadership for Team Leaders Course V Price: $175 Members, $310 Nonmembers

1/8

Food Safety Certification Price: $145 Members, $250 Nonmembers HR Essential Certification Series Effective Interviewing & Hiring Techniques Price: $70 Members, $140 Nonmembers

1/19

1/22

Computer Excel 2007/2010/2013 Level II Excel 2007/2010/2013 Level III Price: $175 Members, $310 Nonmembers

1/8 1/15

Access 2007/2010/2013 Level II (Two Days) 1/22 and 1/29 Price: $350 Members, $460 Nonmembers

“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certification Series. Knowing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fastpaced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager Moody and Associates, Inc.

Certified Supervisory Skills Series Course II Course III (Meadville) Course IV Course IV (Butler) Course V (Butler) Price: $295 Members, $415 Nonmembers Food Safety Certification Price: $145 Members, $250 Nonmembers HR Essential Certification Series Compensation & Benefits Price: $70 Members, $140 Nonmembers

2/18 and 2/25 2/5 and 2/12 2/3 and 2/10 2/11 and 2/12 2/25 and 2/26 2/16

2/19

Computer Access 2007/2010/2013 Level III Excel 2007/2010/2013 Level I Excel 2007/2010/2013 Level II Price: $175 Members, $310 Nonmembers

2/19 2/5 2/12

“Environmental Reclamation Services takes pride in the continued education of our employees.

In seeking out a program that clearly defines the expectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager Environmental Reclamation Services

“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my ev eryday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant Intellectual Property Services

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Professional Development Certified Supervisory Skills Series Course III Course IV (Meadville) Course V Course V (Meadville) Price: $295 Members, $415 Nonmembers

3/11 and 3/18 3/5 and 3/12 3/3 and 3/10 3/26 and 4/2

Food Safety Certification Price: $145 Members, $250 Nonmembers HR Essential Certification Series Employment Law – What HR Should Know Price: $70 Members, $140 Nonmembers HR for Non-HR Professionals Price: $195 Members, $315 Nonmembers

3/16

3/19 3/12

Computer Excel 2007/2010/2013 Level I Excel 2007/2010/2013 Level II Excel 2007/2010/2013 Level III Price: $175 Members, $310 Nonmembers

3/12 3/19 3/26

“Investing in management education for both new and seasoned leaders has not only influenced corporate success, but has contributed to many successful career paths. The MBA-USA programs are high quality, accessible and affordable. That translates into great value.”

— Gary M. Maras, Chief Executive Officer Medicor Associates Inc.

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Training Regional Locations All courses are held at the MBA Conference Center in Erie, unless otherwise noted.

Bradford: Holiday Inn Express

30 Tarport Drive Extension Butler: Fairfield Inn & Suites

200 Fairfield Lane Corry: Higher Education Council

221 North Center Street DuBois: Best Western

82 North Park Place Erie: Manufacturer & Business Association Conference Center

2171 West 38th Street Franklin: Franklin Industrial & Commercial Development Authority

191 Howard Sreet Grove City: Hampton Inn & Suites

Holiday Boulevard Hermitage: LindenPointe

3182 Innovation Way Kittanning: Armstrong Educational Trust

81 Glade Drive Meadville: Holiday Inn Express

18240 Conneaut Lake Road Mercer/Grove City: Hampton Inn, Grove City

4 Holiday Boulevard St. Marys: Community Education Council of Elk and Cameron Counties

4 Erie Avenue, Suite 200 Titusville: Towne Square Conference Center

110 West Spring Street Warren: Warren/Forest Higher Ed Council

589 Hospital Drive, Suite F Williamsport: Genetti Hotel

200 W. Fourth Street * Handicap access and parking available at all sites.

Onsite Training Get more flexibility and convenience with our onsite training options ­— one of the most cost-effective choices for group instruction.

“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Business Association has allowed us to provide a cost-effective solution that is critical to our ability to stay competitive.”

— Joy Sherry, Human Resources Director Ainsworth Pet Nutrition

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Course Registration Contact Terry Nunez at 814/833-3200, 800/815-2660 or tnunez@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.