16 minute read
MFG Tray
“The health-care industry is still responding to the COVID-19 crisis, but the dynamics are beginning to shift in a way that allows the industry to re-focus on growth and innovation…” — Allen Bonace, Saint Mary’s Home of Erie
Health Care
Health care too had to re-adjust and adapt. According to Allen Bonace, president and chief executive officer of Saint Mary’s Home of Erie, “the health-care industry is still responding to the COVID-19 crisis, but the dynamics are beginning to shift in a way that allows the industry to re-focus on growth and innovation to ensure that we are providing the best care possible and meeting the needs of those we serve.” “In particular, “ he continues, “the long-term care and senior living sector is doing this by preparing for the continued aging of the Baby Boomer generation as demand for services is expected to grow.” For Saint Mary’s Home of Erie, Bonace believes the outlook is promising. “We have focused our energies on the continuous enhancement of our Asbury Ridge campus. By investing in construction and renovation projects that will improve services offered, we’re taking steps to better meet the lifestyle needs of seniors today and in the future. One of the reasons Saint Mary’s still exists 140 years since our founding is because we adapt, and will continue to adapt, as we head into 2023 and beyond.” Still, challenges do exist, especially when it comes to the workforce. “Health-care workers are facing burnout and quitting or retiring faster than replacement rates. It requires action on a lot of fronts,” says Bonace. “Having a talented, engaged and diverse workforce is vital for providing high quality care to our residents and for the well-being of our team.” That’s a major challenge for those in other areas of the service sector as well. According to the U.S. Bureau of Labor Statistics, employment growth over the next 10 years is expected to be highest in service industries such as health care and social assistance; leisure and hospitality; and educational services.
Education
Yet, according to Angela Burrows, associate vice president (AVP) and chief marketing officer of the newly integrated PennWest University (California, Clarion and Edinboro universities,) higher education has faced a number of headwinds in recent years due to challenging demographics, cost and public skepticism. “The pandemic exacerbated some of these challenges, but also paved the way for new approaches to course delivery and program offerings,” she says. “At PennWest, we’re all about agility and finding ways to meet the evolving needs of students and employers.” For instance, at PennWest’s newly integrated university, “We had a nearly 2-percent increase in first-year student enrollment this year, which is an indication that awareness of PennWest is beginning to take hold and students are confident about the university’s future,” says Burrows. ”We have heard from students who already are reaping the benefits of living on one campus and taking advantage of course offerings on the other two.” And online offerings also added to its curriculum. “Our Global Online division provides even more opportunity, especially for those who are balancing pursuit of a degree or a certificate with other responsibilities,” says Burrows. To stay ahead, “we will have to continue to demonstrate our value to students who are wise consumers,” states Burrows. “That is not so much a challenge for us, but an opportunity to tell the story of all of what we have to offer as the second largest public university in Western Pennsylvania.”
“We will have to continue to demonstrate our value to students who are wise consumers…” — Angela Burrows, PennWest University
Manufacturing
According to Louie, industries expected to face challenges in terms of job growth include manufacturing, retail trade and the government sector. These national trends are broadly similar to what researchers have seen in the local economy in recent years. However, Louie points out that one silver lining is that the manufacturing sector is still fairly strong in terms of its output, both nationally and locally, despite the employment challenges. Nationally, manufacturing output is expected to grow over the next few years. Locally, manufacturing accounts for nearly 20 percent of the Erie economy, producing almost $2 billion of annual output — a vital part of our economy. At MFG Tray, an industry leading composite manufacturer, the Linesville, PA-based company is cautiously positive about the next fiscal year. “Suppressed demand driven by supply chain issues of 2022 are driving this growth short term,” explains John Thompson, MFG Tray’s president and general manager. “The duration of this short-term experience is targeted to be enhanced by new product introduction to our existing markets.” Thompson sees opportunities in new product introduction for MFG Tray’s confectionery market, product acquisition increasing the company’s offerings for its industrial market, and new product introduction in food service and pharmaceutical markets. Challenges include raw material pricing stabilization and other supply chain inflation factors, labor market shortages and utilities’ inflation. “Supply chain stabilization is our biggest challenge for 2023,” says Thompson. “If we continue to successfully navigate this challenge to the level of 2022, our business will continue to be strong.”
“Supply chain stabilization is our biggest challenge for 2023. If we continue to successfully navigate this challenge to the level of 2022, our business will continue to be strong.” — John Thompson, MFG Tray
Logistics/Transportation
Logistics/transportation is also one of the best indicators of a strong economy, and for Logistics Plus (LP), headquartered in Erie, the outlook for 2023 means “full speed ahead,” according to Founder and CEO Jim Berlin. “We’re not a crystal ball here, but most experts following transportation and logistics believe the economy will see some contraction in Q1 and Q2, and then a return to modest growth the remainder of the year,” adds Scott Frederick, LP’s chief marketing officer. “Hopefully, that means transportation capacity will be more widely available and rates will hold steady. We still have some headwinds due to lack of truck drivers, high expense of operating trucks/fleets, new safety and labor regulations, carbon emission guideline updates, reductions of ocean sailings and air flights, extremely tight warehousing capacity and more. “And that’s assuming we don’t have any more events that disrupt supply chains, like hurricanes, droughts, and wars,” Scott continues. “We view the slower first half of 2023 as a great time to enhance collaboration with your 3PL and/or carrier partners, consider investing in TMS technology if you haven’t already, and re-segmenting your business to better determine how best to cover it through dedicated, contract or spot market activities.” Frederick says LP continues to see great opportunities to expand its services with both current MBA members across the region, and with nonMBA members around the world. “Challenges continue to be helping our customers find affordable transportation capacity amid a myriad of weather, economic and geopolitical supply chain disruptions,” he says. “However, we have cultivated a great workplace with over 1,000 talented and caring professionals around the world using cutting-edge technologies; so, we feel our CEO’s goal of ‘humbly conquering the world from Erie, Pennsylvania’ is still something we can aspire to.”
— Scott Frederick, Logistics Plus
According to Louie, a key trend to watch is the degree to which Erie can sustain all the positive economic development initiatives that have been taken across the region over the past several years. “Many of these initiatives have been the result of broad collaborative efforts across our community,” notes Louie. “If we can sustain the momentum to move Erie (and PA for that matter) continuously in a positive economic direction, we are likely to see a much more prosperous and dynamic regional economy in the years ahead.” To learn more about what’s in store for the economy in 2023, register for the MBA’s Economic Outlook IMPACT Luncheon, starting at noon December 8 at the MBA Conference Center in Erie at mbausa.org.
ERIE Economist Identifies Key Challenges for 2023
As concerns mount about a looming recession, many people are looking to economists to see if there is any silver lining expected in the year ahead. Here, Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) and associate professor of economics at Penn State Behrend, talks about growth estimates, as well as the statistics and trends that are expected to impact the economic outlook for 2023.
How would you describe the outlook for the U.S. economy as we begin 2023?
The U.S. economic outlook for 2023 has become somewhat gloomier in light of the stubbornly high inflation rate and the Federal Reserve’s attempts to bring it back down to the desired 2-percent target by nudging up interest rates. As of September, the U.S. labor market remains fairly robust, with nonfarm payroll employment increasing by 263,000 and the unemployment rate declining slightly to 3.5 percent. However, the Fed’s aggressive monetary policy stance has stoked fears that the higher interest rates will tip the economy into recession in 2023.
Looking ahead, U.S. economic growth is expected to average 0.7 percent and 1.2 percent in 2023 and 2024, respectively. What does your research show?
Those estimates are consistent with the economic forecasts by major institutions like the U.S. Federal Reserve and the International Monetary Fund (IMF). Their latest forecasts suggest that U.S. economic growth will remain sluggish (below 2 percent) for the next two years. The median forecast by Fed policymakers is for U.S. real GDP to grow by 1.2 percent in 2023 and by 1.7 percent in 2024. The IMF expects U.S. real GDP to grow by 1.0 percent in 2023 and by 1.2 percent in 2024.
What about the regional economic outlook? How does it compare with the state and nation for 2023?
Since the U.S. national economy tends to lead the regional economy, the Erie regional economic outlook for 2023 is likely to be similar to that for the nation as a whole. Based on the national forecasts noted above, Erie is likely to experience sluggish growth in 2023, along with Pennsylvania and the aggregate national economy. From a historical perspective, the regional economy was fairly stable prior to the pandemic, with Erie County’s real GDP growing modestly by 1.4 percent in 2019. This was lower than the 2.3-percent growth rate for the nation as a whole, and only slightly below the 1.7-percent growth rate for the Commonwealth. Unfortunately, as a result of the disruptions caused by the pandemic, real GDP in 2020 declined by 5.8 percent in Erie County, 4.5 percent in Pennsylvania, and 3.4 percent in the United States as a whole. Data on the growth rate for the regional economy in 2021 and 2022 are not yet available, so it’s too early to determine the post-pandemic rate of growth in the Erie economy.
Experts also project unemployment rate to reflect the slower growth, roughly 4 percent in 2023 from 3.6 percent in 2022. What is your assessment of the employment rate? What are you seeing at the local level?
The national unemployment rate is expected to increase due to the Fed’s tightening of monetary policy and the resulting slower rate of economic growth. The Fed’s latest median forecast suggests that the U.S. unemployment rate will increase from 3.8 percent in 2022 to 4.4 percent in both 2023 and 2024 before dipping slightly to 4.3 percent in 2025. At the local level, gradual recovery from the pandemic has lowered the unemployment rate to 5.0 percent in August compared to 7.0 percent a year earlier. However, the local labor market remains somewhat lethargic, with nonfarm employment growing by less than 1 percent on a seasonally adjusted basis since January. Also, Fed policy as well as slower growth may add further pressure on the local labor market in 2023.
What key areas/current issues should we be keeping our eyes on when it comes to the economic forecast for 2023?
One key thing to watch is the degree to which the Fed continues its aggressive monetary tightening to fight inflation, and the impact of that monetary policy on inflation, unemployment and the performance of both the national and the local economy. In other words, we should focus on gauging the degree to which the Fed is achieving the elusive goal of engineering a “soft landing” for the economy so that it fulfills its dual mandate of promoting maximum sustainable employment and price stability. Of course, other issues we should continue to keep our eyes on include the ongoing war in Ukraine, which has continuing economic repercussions around the world, including significant impacts on global food and energy markets. Domestically, the U.S. midterm elections are also important since the results may affect the nation’s fiscal policy in the next few years. To learn more about the 2023 economic forecast, register for the MBA’s in-person and virtual Economic Outlook IMPACT luncheon on December 8 at mbausa.org.
Jim Berlin is the founder and chief executive officer of Logistics Plus. Berlin is shown here in front of LP’s warehousing and office space at the Erie TimesNews building in downtown Erie, Pennsylvania.
Global Headquarters:
1406 Peach St. Erie, PA 16501
Phone: 1-866-564-7587 (1-866-LOGPLUS)
Website: logisticsplus.com
COMPANY PROFILE
21st Century Logistics Supplier Moves Full Speed Ahead
History
After a 20-year career in the trucking industry as a driver and terminal manager, Jim Berlin founded Logistics Plus, Inc. (LP) in 1996 with only three employees, one customer, and a $120,000 purchase order. Jim has invested heavily in the Erie community’s economic development. In 2003, he renovated the 80-year-old former train station and made it the company’s global headquarters. In 2019, he purchased the Erie Times-News building for additional downtown warehousing and office space. In addition to many company awards, Jim has been honored as a Most Admired CEO by the Manufacturer & Business Association (MBA), and Ernst & Young (EY) recognized Jim as Western Pennsylvania’s “Entrepreneur of the Year” in 2004. Berlin is also a member of the Business Advisory Council for the Federal Reserve Bank of Cleveland.
Global. Integrated. Logistics.
Logistics Plus is now a 21st Century Logistics Company™ and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology and supply chain solutions. Today, LP has annual global sales approaching half a billion dollars and over 1,000 employees in 35 countries worldwide. LP is consistently recognized as one of the fastest-growing privately-owned transportation and logistics companies, a top 3PL, a top freight brokerage and warehousing provider, a leading project cargo manager, and a great place to work. With its trademark Passion for Excellence™, its global employees put the ‘plus’ in logistics by doing the big things properly, plus the countless little things that ensure complete customer satisfaction and success.
3PL, 3½PL or 4PL Solutions
Logistics Plus offers a breadth of reliable and affordable services. Working as a 3PL, 3½PL, or 4PL partner, they’re the company known for saying YES, not NO, to unique supply chain challenges. LP handles projects from start to finish by doing what other logistics companies can’t or won’t do — and you won’t be waiting on them. They are lean, agile and responsive to customers’ needs, yet they are large enough to have a network of solutions spanning the entire global supply chain.
A Global Network of Resources
The Logistics Plus® network includes offices, warehouses, and agents located in Erie, PA; Aurora, CO; Buffalo, NY; Charlotte, NC; Chicago, IL; Chino, CA; Cincinnati, OH; Cleveland, OH; Colton, CA; Dallas, TX; Dayton, NJ; Des Moines, IA; Haslet TX; Honolulu, HI; Houston, TX; Laredo, TX; Lexington, NC; Los Angeles, CA; Meadville, PA; Miami, FL; New York, NY; Norfolk, VA; Olean, NY; Ontario, CA; Phoenix, AZ; San Francisco, CA; Tulsa, OK; Vancouver, WA; Australia; Belgium; Brazil; Canada; China; Colombia; Czech Republic; Egypt; France; Germany; India; Indonesia; Japan; Kazakhstan; Kenya; Libya; Malaysia; Mexico; Netherlands; Poland; Saudi Arabia; Singapore; South Africa; Taiwan; Thailand; Turkey; UAE; Uganda; Ukraine; and Vietnam; with additional agents around the world. Find all its people and locations online at logisticsplus.com/directory.
The Future
Headquarters:
6175 U.S. Hwy 6 Linesville, PA 16424
Phone: 814/683-4500
Website: mfgtray.com
MFG Tray Now Employee Owned
Molded Fiber Glass Tray Company, or MFG Tray, headquartered in Linesville, Pennsylvania, is the leading manufacturer of high-strength, glass-reinforced composite containers, trays, boxes, flats and totes. MFG Tray containers support businesses serious about material handling in the metalworking, plastics, electronics, food service, confectionery, farming and pharmaceutical industries. MFG Tray is one of the 10 entities within the Molded Fiber Glass Companies (MFG). After 74 years of private ownership, the Morrison family sold 100 percent of its shares to the MFG Employee Stock Ownership Plan (ESOP), transitioning it to a 100 percent employee-owned company — an exciting move for the employees and a beneficial move for the local economy.
History
Molded Fiber Glass Companies (MFG) was founded in 1948 by entrepreneur Robert S. Morrison (1909–2002) and has grown to be one of the largest local employers in the area. MFG has prided itself on being an innovative, family owned enterprise spanning four generations of the Morrison family for the past seven decades. When they opened their doors, a small creative team worked diligently to figure out the best way to mass-produce the first polyester resin and fiberglass products. In 1953, MFG was selected to manufacture fiberglass body parts for the new Chevrolet Corvette. This move put MFG on the map as a significant player in the market and launched a sequence of other “firsts” — including the creation of the first fiberglass boats, high-volume truck and tractor parts, bakery trays, concrete forms, and satellite dishes, to name a few. These early successes allowed MFG to spin off specialized divisions, like MFG Tray, to support the ever-growing popularity and demand for fiberglass. “It’s not common knowledge that fiberglass containers outperform and outlast plastic, metal and wood containers or that fiberglass containers
COMPANY PROFILE
integrate seamlessly into existing material handling operations,” said MFG Tray’s General Sales Manager Celena Davis. “’The material matters in material handling’ isn’t just our tagline — it’s an anthem. Our team takes great pride in arming our clients with a new lineup of containers, knowing it will immediately up their game and let them kick the competition to the curb.”
An Exciting Future
More than 70 years after MFG Tray opened its doors, the enduring entrepreneurial spirit, commitment to customer satisfaction and integrity in business — which Robert Morrison reinforced in the very fiber of the products he created — lives on through MFG Tray’s dedicated employees. The change in share ownership from Morrison family members to the ESOP does not change contractual relationships or business operations but rather benefits and rewards the entire team directly dedicated to producing the highest quality fiberglass products in the market.
John Thompson, MFG Tray’s president and general manager, noted that any discussion on the transition to an ESOP must first begin with a heartfelt expression of gratitude: “Our team is incredibly grateful for the Morrison, Warner and Raffa families’ support over the past seven decades. Under their ownership, MFG Tray teammates became a part of their extended family — a rare thing in today’s competitive business world. We sincerely appreciate all they have done for our operation, and we wish them a blessed future. Looking ahead, we are excited to begin the transition to an ESOP and for its potential. Robert Morrison wove spirit, commitment and integrity into MFG and now it is up to us to keep those principles in the forefront. Fortunately, we have the best team in the industry. They are not only ready for the challenge but talented enough to grow and expand MFG Tray’s operations and footprint for generations to come.”
