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BUSINESS
VOL. XXXIII NO. 6 | JUNE 2020
MAGAZINE
SPOTLIGHT Q&A:
THE IMPORTANCE OF BUSINESS CONTINUITY, SUCCESSION PLANNING
FAMILY OWNED FIRM MARKS 78 YEARS AS ‘AMERICAN MADE, AMERICAN PROUD’ STORAGE RACK SOLUTIONS LEADER
SPECIAL SECTION:
ASSOCIATION SALUTES FAMILY BUSINESSES
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FEATURES FEATURE STORY | WHAT’S INSIDE
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A Salute to Family Businesses Why these operations stand out.
COVER STORY | LOCAL PROFILE
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Ridg-U-Rak, inc. The North East, Pennsylvania manufacturer, owned and operated by two generations of the Pellegrino family, is marking 78 years as one of the largest privately held storage rack and pallet rack providers in North America.
SPOTLIGHT Q&A | STRATEGY
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As most employers know, business continuity and succession plans are key to preparing for the future. Here, Chris Salandra, CPA, a partner at McGill, Power, Bell & Associates, LLP, discusses some of the most valuable information that employers should know to keep their businesses thriving.
COMPANY PROFILE| INDUSTRY
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family businesses across our region, including a few of those that have graced the Business Magazine cover over the years!
Industrial Sales & Mfg, Inc. Local, family based businesses are essential to leading us back to growth, opportunity.
COMPANY PROFILE| MANUFACTURING J.V. Manufacturing Co., Inc. 21
A manufacturing company 45 years in the making.
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ON THE HILL | PROFILE
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On the Cover: Ridg-U-Rak, Inc. is one of northwest Pennsylvania’s most reputable family owned manufacturing companies. Shown here are (from left): Vice President of Manufacturing Operations John B. Pellegrino Jr., President and CEO John B. Pellegrino Sr., P.E., and Vice President of Sales and Engineering Mark E. Pellegrino. See page 4 for full story. Mission Statement: The Manufacturer & Business
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© Copyright 2020 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.
What employers “recovering” from COVID-19 need to know about bringing employees back to work. Brian Cressman
There are many reasons why family businesses fail. Knowing that, it makes W.K. Thomas & Associates, which recently celebrated its 45th anniversary, an even more remarkable company. Eileen Anderson
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FEATURE STORY | WHAT’S INSIDE
A Salute to Family Businesses WHY THESE OPERATIONS STAND OUT BUSINESSMAGAZINE VOLUME XIX, NUMBER 9
Family businesses are economic powerhouses, but these family firms are not only unique in their contributions to our community, but in their approach to business as well. Many family firms boast distinct, competitive values that result in more than just profits.
According to Family Enterprise USA, more than 90 percent of family businesses feel that what sets them apart from other companies is a long-term investment philosophy, commitment to employees and suppliers, and contributions to their communities. In fact, research by the Conway Center for Family Business found: • Family businesses leaders focus on the next generation. They tend to embrace strategies that put customers and employees first and emphasize social responsibility. • Family businesses have powerful internal cultures. A study of 114 family firms and 1,200 other large companies for their organizational health found that family owned businesses score significantly higher on things like worker motivation and leadership. • 74 percent believe they have a stronger culture and values than other non-family firms. And, 72 percent measure success differently, not just growth and profit. • Of primary importance among family firm wealth holders is transferring not only their financial wealth but also their values surrounding their wealth to subsequent generations. Primary values include encouraging children to earn their own money, philanthropy, charitable giving and volunteering. • The environment for innovation in family businesses improves when more generations of the owning family are actively involved in the business.
SEPTEMBER 2006
BUSINESS
ANIA RTHWEST PENNSYLV SSO CIATION OF NO MANUFACTURERS’ A
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BM UA SG IN ES S A Z I N E Manufacturer & Business Associat
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VOLUME XXV, NUMBER 11
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50 YEARS STRONG
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2006 Business Magazine s September
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MBa CeleBrates More thaN 100 traiNiNg graDuates
Mechanical Contracting Firm Builds on Old-Fashioned Values, New Technology / Page 10
Family businesses are the cornerstone of the American economy as well. According to recent statistics: • Family businesses account for 64 percent of U.S. gross domestic product, generate 62 percent of the country’s employment, and account for 78 percent of all new job creation. • The greatest part of America’s wealth lies with family owned businesses. According to the U.S. Census Bureau, family firms comprise 90 percent of all business enterprises in North America. • Small businesses, including many family firms, employ just over half of U.S. workers. Of 113.4 million non-farm private sector workers in 2011, small firms with fewer than 500 workers employed 55 million and large firms employed 58.4 million. Firms with fewer than 20 employees employed 20.2 million. The Manufacturer & Business Association (MBA) is truly proud to support our region’s employers, especially the many family businesses that are the bedrock of our communities. In fact, whether they have been in operation for generations or are just
getting started, we recognize the countless contributions of these organizations. That’s why, in this month’s MBA Business Magazine, we are saluting these dynamic family businesses, their success stories and the vital role they play in our region’s economy and quality of life. In this edition, we’ll showcase North East, Pennsylvania-based Ridg-U-Rak, Inc., which is owned and operated by the Pellegrino family, and is one of the largest pallet rack and storage rack manufacturers in North America. We’ll also talk about how family owned firms, such as W.K. Thomas & Associates General Contractors in Butler, Pennsylvania, are building the future. Plus, we’ll hear from McGill, Power, Bell & Associates Partner Chris Salandra, CPA, about the importance of business continuity and succession planning during such a critical time in our world. We’ll also recognize some of the many family owned operations that have graced the cover of the MBA Business Magazine over the years! To learn how the Association can assist your family business now and in the near future, visit www.mbausa.org!
THE CORNERSTONE OF AMERICA!
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COVER STORY | LOCAL PROFILE
Ridg-U-Rak, Inc. is led by Vice President of Manufacturing Operations John B. Pellegrino Jr., President and CEO John B. Pellegrino Sr., P.E., and Vice President of Sales and Engineering Mark Pellegrino.
Family Owned Firm Marks 78 Years as ‘American Made, American Proud’ Storage Rack Solutions Leader American Owned. American Made. American Proud. Those are the words that come to mind when describing Ridg-U-Rak, Inc., one of largest privately held storage rack and pallet rack providers in North America. Owned and operated by the Pellegrino family, Ridg-U-Rak is widely recognized for its innovative and quality rack products, as well as for its longstanding contributions to advancing manufacturing and career opportunities in northwest Pennsylvania (NWPA). With 320 employees, the company is one of the largest employers in North East, Pa., with three state-of-the-art locations, including two production facilities covering 160,000 square feet and a 5 1/2-acre warehouse and distribution center added in 2018. President and CEO John B. Pellegrino Sr., P.E., who leads the company with his two sons, John Jr. and Mark, attributes many factors for Ridg-U-Rak’s longevity and long-term success. “Family ownership coupled with a constant focus on building a customer-centric organization, lean operational principles, continuous reinvestment into the business, maintaining a strong financial position, and creating a highly positive atmosphere by taking care of our employees have all contributed to what Ridg-U-Rak is today.”
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The American Dream
Ridg-U-Rak has been a staple in the NWPA business community since 1942 when it began producing industrial storage racking as part of the push to modernize America’s warehousing needs following World War II. At that time, there were virtually no companies like Ridg-U-Rak that existed, and even though it was limited in marketing and automation, the company had survival strengths that allowed it to grow. But the story of its growth and market position is really the story of the American Dream thanks to the dedicated and visionary leader Pellegrino, who joined the company as vice president of Sales and Engineering back in 1975. During the Great Depression, the Warren and Forest County native was inspired to become an engineer while watching his father and grandfather build the railways that would support the logging industry in rural Pennsylvania. One day, Pellegrino says he spotted an engineer, surveying the project and clearly standing out among the laborers in a suit and tie. At age 6, he knew it was the career for him. From there, he worked odd jobs and passionately pursued his studies to make his dream come true. “I’m a big believer in education but you have to have marketable skills,” Pellegrino says. “I couldn’t have managed my business without it.” After high school, Pellegrino served his country proudly in the Korean War before returning home ready to earn his degree in civil and structural engineering from Tri-State University in Indiana. From there, Pellegrino worked as a registered professional engineer for 14 years when opportunity came knocking at the little known North East, Pennsylvania company — Ridg-U-Rak, Inc. Although it was small in size, the company held big opportunities for Pellegrino to make a lasting mark. He was hired and soon became involved in all aspects of the company, from engineering and product design to development, marketing and sales. When the business became available, Pellegrino seized the chance to make it his own and never looked back.
Ridg-U-Rak has three state-of-the-art locations in North East, Pennsylvania, including two production facilities covering 160,000 square feet and a 5 1/2-acre warehouse and distribution center added in 2018.
He not only brought a new level of skills and innovation to the direction of Ridg-U-Rak, but also a commitment to building a culture of high operational integrity, a culture where employees embrace that philosophy and show it through their everyday actions.
At the heart of most Ridg-U-Rak pallet rack systems is its famous rollform column design. “Ridg-U-Rak’s unique 6-bend column profile is an optimized design, which offers a high performance solution for structural stability and efficient load carrying capacity,” Pellegrino explains.
Pellegrino, who is the only local leader to be named chairman emeritus of the Manufacturer & Business Association, has earned respect and admiration from his family, his employees and his peers. “Even our competition has respect for Ridg-U-Rak, because of our integrity,” says Pellegrino. “Rule No. 1, the customer is always right. No. 2, when they are wrong, go back to rule No. 1. And, always remember: There is no job below you, and there is no free money.”
Ridg-U-Rak provides an unlimited array of storage options, such as deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems. The company also provides small storage systems for pallet loads or hand-stacked cartons, and offers replacement parts that interchange with competitive racks.
It’s an unwavering sense of accountability, work ethic and integrity that has been passed down from one generation of the Pellegrino family to the next. Much like their father, Pellegrino’s sons have worked their way up through the company and have contributed to its long-term success. John Jr. is vice president of Manufacturing Operations, and Mark is vice president of Sales and Engineering. Also employed at Ridg-U-Rak is Pellegrino’s son-in-law, Tom Bohrer, a project engineer who has a P.E. in Mechanical Engineering and is in charge of the development and maintenance of Ridg-U-Rak’s state-of-the-art online quoting software platform. The platform is known to be the best in the storage solutions industry and allows Ridg-U-Rak to expeditiously provide fully engineered quotations for its products and services. Having such qualified and committed family members at Ridg-U-Rak is critical to the company’s future. “This level of experience and succession provides to all stakeholders a sense of long-term stability and enhanced confidence and trust that the partnership is one that remains intact for many years,” says Pellegrino. “I am comfortable leaving the company in their hands.”
Engineering and Quality Excellence
In addition, Ridg-U-Rak has complemented its core rack business in the areas of seismic isolation and rack protection guarding product lines. The Pellegrino Seismic Base Isolation System, for instance, is one of its most innovative solutions, proven to withstand the most powerful earthquake anticipated in the United States with little or no merchandise shedding or rack damage. Of course, quality is a given with all of Ridg-U-Rak’s products, and is one reason why it has so many loyal and repeat customers. “We firmly believe that product quality is not just a ‘one department’ responsibility, rather it begins with procurement of high-quality American made raw materials and continues through finished product installation,” explains Pellegrino. “Every department and person that touches the product along its journey contributes added quality; it is simply our culture.” Ridg-U-Rak employs more than 80 welders, and in conjunction with a local trade school, has implemented an in-house AWS Certified Welder program. The program ensures Ridg-U-Rak employees are the best trained and produce the highest quality of structurally proficient welds. “We are able to boast that 100 percent of our products are welded by AWS Certified Welders, a claim very few rack manufacturers can make,” says Pellegrino. “This provides our customers with peace of mind knowing they are purchasing well engineered products, made from >
When it comes to where it stacks up against the competition, Ridg-U-Rak has certainly accomplished what others have not. The company creates in excess of 140 million pounds of rack each year with a broad distributor base covering all regions of the United States and a diverse mix of national accounts in both retail and industrial markets. For 78 years, Ridg-U-Rak has steadily and systematically built upon its engineering excellence by producing quality storage rack solutions utilized by many of the country’s most recognized big-box retailers, including Wal-Mart, Sam’s Club and Target, and manufacturing powerhouses such as Proctor & Gamble, Black & Decker, Boeing and Hershey Foods, just to name a few. The Pellegrinos and their highly skilled workforce have produced some of the most sophisticated engineering marvels in the storage industry. It is truly a sight to see in distribution centers that span upwards of 44 football fields filled with an intricate network of Ridg-U-Rak’s steel rack systems’ rising 30 to 45 feet high and supporting pallet loads of 35,000 to 40,000 pounds per rack bay (each one the weight of a motorhome).
Ridg-U-Rak is one of the largest pallet rack and storage rack manufacturers in North America, with an annual production capacity of more than 140 million pounds of storage rack. The privately held company is owned and operated by two generations of the Pellegrino family. Headquarters: 120 South Lake Street North East, PA 16428 Phone: 866-479-7225 Website: www.ridgurak.com
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Ridg-U-Rak provides an unlimited array of storage rack options for its customers, such as deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems.
the highest quality materials, by the best trained workers. Couple this with incredible customer service and competitive pricing and you end up with the best value in the industry.” Ridg-U-Rak has invested heavily in innovation and its facilities to stay ahead of the curve — including the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality, but also the company’s environmental imprint by eliminating its liquid paint usage. “We have invested significant capital in every aspect of our plant operations, offices and warehouses,” says Mark Pellegrino. “Most recently, we invested in a new 240,000-square-foot logistics warehouse.” Ridg-U-Rak also continues to make investments in areas of its operations that help it streamline costs and improve the quality of its products. “Our investment in computer hardware and software technology has allowed our office staff to work remotely, in an effective and seamless manner during the current COVID-19 crisis,” says Pellegrino. “We have invested in lifting equipment in two key areas of our operations to aid our employees with heavy lifting of our product. These devices enforce our commitment to keeping our employees safe and continue to build a strong safety culture.”
Lasting Impact
When discussing its impact, Ridg-U-Rak is a tremendous example of the importance of manufacturing to America’s past, present and future. The company is one of the biggest buyers of steel in northwestern Pennsylvania, running in excess of 2.7 million pounds of steel a week, or 150 miles of roll steel product. “We have long-term relationships with the large steel producing mills, which provides critically important stability of our primary raw material supply chain,” Pellegrino states. Ridg-U-Rak is also an “essential” manufacturer, which has been fully operational throughout the COVID-19 coronavirus crisis of 2020. “We feel very fortunate to be part of essential supply chain industry, especially at this time of need,” explains Pellegrino. “We supply the storage solutions needed by both the industrial base of the supply chain and logistics industry and the large national retail store base that is critical for the life-sustaining activities needed by Americans every day during this crisis. These organizations are especially critical now,
but will be equally important during the recovery process. In addition, our employees are able to continue to provide for their families at the standard of living they are accustom without experiencing any undo financial hardship.” While Ridg-U-Rak is positively positioned to weather the storm of the COVID-19 crisis, the company recognizes there are major issues for the American economy that must be addressed. “Again, we feel fortunate to be in this industry, especially at this time of significant growth in e-commerce and logistics,” says Pellegrino, “However, given that America is experiencing an ‘eye-opening’ on the erosion of our manufacturing base and the ‘over-dependency’ we have on other countries for critical life-sustaining products, we do see the strong potential for a surge in manufacturing business investment to bring much of that back to America, along with many good-paying jobs and careers.” Pellegrino, for one, has always been a strong believer in the free enterprise system and has put a lot of pride — and value — in making products in America. “The free enterprise system is the engine that drives our economy. That’s what makes us the most powerful country in the world,” he says. “This is the only place in the world where, if you have the moral fabric, work ethics and modesty, you can achieve anything.” Ridg-U-Rak is integral to the community in which it operates and is proud to support local fire departments, animal shelters, schools, sports teams, food banks and charity auctions. The manufacturer also has been a major sponsor of the MBA’s Annual Event, the region’s premier business networking event, and yearly MFG Day celebration, the largest in the country, which educates students on the opportunities available in manufacturing careers. For Pellegrino, his family and Ridg-U-Rak team, manufacturing is truly a way of life. “Our country was built on the principles of entrepreneurship, ingenuity, and the freedom to pursue your dreams,” he says. “With this freedom and a willingness to work hard, manufacturing in the United States evolved as a primary foundation for success and became the envy of the world.” At Ridg-U-Rak, the Pellegrinos embrace this principle as they make their mark with each generation. “Over the years, our company has silently grown to be one of the major economic success stories of NWPA,” says Pellegrino, “and we are proud to offer some economic stability to our community, especially during such tough times as we are living in right now.” As he looks to the future, Pellegrino is a leader who knows what it takes to move ahead. “We are focused on our business one day at a time, especially during these times of crisis,” he says, “but with a keen eye to our future and a willingness to adjust and adapt, as the winds of change evolve as they have for many years.” “As General Douglas MacArthur once said,” Pellegrino continues, “ ‘ A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.’ ”
Quality is a given with all of Ridg-U-Rak’s products, and is one reason why the company has so many loyal and repeat customers.
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For more information, visit www.ridgurak.com.
SPOTLIGHT Q&A| STRATEGY
COVID-19 Crisis Emphasizes Importance of Business Continuity, Succession Planning As most employers know, business continuity and succession plans are key to preparing for the future. But the COVID-19 crisis has greatly emphasized this point and especially the need for temporary succession planning at a critical time. Here, Chris Salandra, CPA, a partner at McGill, Power, Bell & Associates, LLP, discusses some of the most valuable information that employers should know to keep their businesses thriving. The potential effect of the pandemic on executives’ health has made organizations more cognizant of the importance of business continuity and succession plans. What are some key lessons that have been learned? There really is a distinction between the business continuity and succession plans. The business continuity plan shows your customers and employees that you will be prepared to meet their needs in any event, while the succession plan helps to ensure that your family and loved ones will be taken care of financially.
they do not have a business continuity or succession plan, they need to begin developing those immediately. Preparing these plans takes time and won’t be completed over night. One of the first steps, if no plans are in place, is to identify your key employees. During this process, a company may find a person that is essential that they didn’t realize. A key employee is really anyone whose sudden departure may disrupt the business operations, productivity or morale.
The second key takeaway is that the business continuity plan needs to be constantly reviewed, at least annually, though more frequently is preferred. The same can be said with succession plans; these need to be reviewed and updated for changes that may occur either from internal or external factors.
What are some vital questions that employers or business owners need to ask about their continuity plan? There are several questions you need to address in your continuity plan, not limited to the following: • What are your company’s critical functions? • Who are your critical customers and major products or services? • What risks are you likely to encounter in the short term and long term? • Is there a backup in place for crucial job functions? • Can your workers work remotely if needed? • Are you certain there are no vulnerabilities in your plan?
What is the first step a company should take with their business continuity/ succession plan — whether it is temporary or for the long term? The first step really depends upon if a company already has plans in place. Assuming they do, the company needs to dust them off, review them and get them updated accordingly if they have not been doing so. However, if
What documentation should be in place before a time of crisis arises? A company needs to have a business continuity plan drafted, reviewed and have all team members familiar with the procedures outlined in the plan. Also, the company needs to constantly review their business insurance and make sure they have adequate coverage for any potential losses.
I’d have to say the major lesson that everyone should have learned is that businesses of all types need to develop and maintain contingency plans in the event that any of their key employees or the owner(s) become unable to perform their job and need to be replaced. In many instances, the small business owner may be the only key employee.
In light of the COVID-19 crisis, employers have spearheaded efforts to preserve cash and revise financial planning and make difficult decisions about layoffs and loans. What are some key issues that companies should consider when it comes to these topics, and continuity and succession planning? Companies need to stay in contact with their trusted advisers during these trying times. Guidance on many topics is still evolving and can be confusing to say the least. For instance, companies need to be vigilant in properly accounting for costs during their eight-week covered period for calculating loan forgiveness under the Paycheck Protection Plan loan program — this is something that a trusted adviser can help to navigate in an efficient manner. There are also tax credits available under the Coronavirus Aid, Relief, and Economic Security Act and the Families First Coronavirus Response Act that can help to offset some of the financial impact that the pandemic has had. One important thing to consider — if your company is going through a period where layoffs occur — are your continuity and succession plans strong enough to address this circumstance, or are there key functions that are impacted which now need addressed? The pandemic has been an experience that none of us will ever forget. We need to use this event as an opportunity in planning for the future. For more information about McGill, Power, Bell & Associates, LLP, visit www..mpbcpa.com.
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Three generations of the Rutkowski family are shown here, including ISM Founder and CEO Jim Rutkowski Sr. (front, center), his sons Jim Jr. (back, left) and Charlie (back, right) and daughter Ann Rutkowski-Marx (right). Jim Jr. is the general manger and treasurer at ISM; Charlie is vice president of Manufacturing, and Ann is the company’s secretary and business manager.
2609 West 12th Street Erie, PA 16505 814/833-9876 www.ismerie.com Jim Rutkowski Jr. is the general manager and treasurer of Industrial Sales & Manufacturing, Inc. (ISM), a third-generation, family owned contract manufacturer headquartered in Erie, Pennsylvania.
CO M PAN Y PR O FIL E
Local, Family Based Businesses Are Essential to Leading Us Back Toward Growth, Opportunity The bedrock of our economy locally, regionally and globally are family businesses. In the emotional roller coaster of today’s times, the values and principles of family businesses guide us in these days of uncertainty.
In the last few months, we have been able to keep our employees coming into work. We have secured jobs and orders that have provided stability for our teams and their families. In addition, in many cases, we are busier than we have been in a while.
A family business is by nature a generational collection of families that work together to provide parts and services. Industrial Sales & Manufacturing (ISM) is truly just that.
We truly applaud our employees, customers and community for stepping up to work together to forge a path forward in the coming months and years.
We are a full-service contract manufacturer of high quality component parts for original equipment manufacturers (OEMs). Our company provides a full array of Machining, Fabrication, Assembly, Testing and Finishing services. With more than 800 customers, and 50,000 unique parts produced, you can find ISM products around the world in everything from hospitals, windmills to locomotives. ISM’s full-service capabilities distinguish the company from its competitors. That, coupled with our focus on customer success is the engine behind our growth.
You see, this pandemic has served as a reset button for the entire world. It has broken a lot of business owners and companies out of the “loops” that they were in. Now, they are seeking new relationships, new opportunities, new support systems and new manufacturers.
The three generations of the Rutkowski family truly care about our team members and our customers. They are part of our family as well. As a community, we have got our work cut out for us. You and I both know that. Work is not a bad thing though. Recognizing opportunity in this pandemic is more a matter of perspective than anything else.
Therein lies our opportunity. Our humble community has its roots in manufacturing. We have a whole lot of untapped resources that the world does not know exist in their backyard. Right now is the time to mobilize those resources.
They need product to sell! We can help them with that. Now, my friend, is the time to let the world know that our community of local, family based businesses are here to help with their manufacturing. Sure, you might need to do more custom work. You might need to work more closely with retailers and distributers who are used to going internationally. However, if there is one thing that is certain: Now is the time that people are open to having those conversations! Our family’s commitment on Day One has been that service, quality and performance will get all of us collectively back on the path that will achieve growth that benefits our company, team members and the community in which we live. Pick up the phone. Hustle. Build relationships. Secure your future. And stay safe!
Disruptions to both national and international supply chains are happening daily in ways no one could imagine. Goods and services are needed and being sold online FASTER than ever been before. In addition, stateside vendors are running out of inventory because of metric based sourcing decisions that led them all over the globe!
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LEGAL BRIEF | UPDATE
Employers ‘Recovering’ from COVID-19: Bringing Employees Back to Work would not typically qualify, extended the benefit period to 39 weeks in most instances, and provided an additional $600 of Federal Pandemic Unemployment Compensation on top of a person’s weekly benefit. As a result, Pennsylvania employees who make less than approximately $61,000 per year will make more each week collecting unemployment than they did in their paychecks while working full time.
Brian Cressman is an associate at MacDonald Illig and a member of the Business Transactions, Trusts & Estates, Real Estate, and Education Law Practice Groups.
Businesses nationwide were, and continue to be, faced with unprecedented challenges brought on by the COVID-19 pandemic. To mitigate the spread of coronavirus, Governor Wolf closed many businesses, which resulted in mass layoffs. Further, essential businesses, although permitted to remain open, were not insulated from the impact of the national economic slowdown, resulting in layoffs. In response, the Pennsylvania Legislature and Congress have enacted legislation in an effort to help businesses and their employees restore their health, including the Families First Coronavirus Response Act (“FFCRA”) and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). While these acts implemented programs aimed to cure COVID-19 symptoms suffered by both employers and employees, they
also might have unintended side effects. For example, two such initiatives passed in response to the pandemic establish new paid leave rights for employees and expand the scope and benefits of unemployment for those out of work. One such unintended consequence of these provisions may be incentivizing employees to delay returning to work. The FFCRA created Expanded Family and Medical Leave (“EFML”), under which an employee who cannot work because he/she has to stay at home to care for a child whose school or childcare has been closed pursuant to a government order related to COVID-19 is entitled to paid EFML for up to 12 weeks at two-thirds of his/her normal rate. Pennsylvania closed all schools for the academic year, which undoubtedly increased the number of people requesting EFML. Unfortunately, the childcare issue is not resolved with the conclusion of the academic year. If the employee does not have childcare available during the summer months, the employee may continue on EFML and possibly not be able to return to work even after his/her leave has been expended. Additionally, the CARES Act expanded unemployment to cover individuals that
The practical business problems arising from the pandemic (for example, allaying employee fears, re-engineering operations to comply with social distancing, maintaining morale and assuring workplace safety) and the incentive structure provided by the expanded employee benefits discussed above have been and remain potential barriers to smooth operations for employers. Employers must be cognizant of guidance from a variety of state and federal agencies bearing on a variety of issues in recalling employees and operating during the pandemic, including anti-discrimination laws and workplace safety rules, all while managing employee concerns. Additionally, if an employer obtained a Paycheck Protection Program (“PPP”) Loan, the PPP forgiveness amount may be impacted by the return of its workforce. In order to avoid reduction to the forgiveness amount of a PPP loan, an employer must restore its workforce and wages by June 30, 2020, or document that the employer made qualifying offers to employees to return and the employees rejected those offers. Just like the onset of COVID-19 presented unforeseen challenges for businesses, so will the recovery process. State and federal guidance changes frequently, and often is only advisory. Do not wait until the last minute. Consult with your attorney, accountant and banker, as applicable, to proactively address issues. Plan for the challenges ahead as best you can, and our attorneys are here to provide guidance in the process. For more information, contact Brian Cressman at bcressman@mijb.com or call 814/870-7600.
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BUSINESS BUZZ | WHAT’S NEW NORTHWEST BANCSHARES, INC. COMPLETES MERGER WITH MUTUAL FIRST FINANCIAL, INC.
Northwest Bancshares, Inc. (“Northwest”) (NASDAQ: NWBI), the holding company for Northwest Bank, recently announced that it has successfully completed its merger with MutualFirst Financial, Inc. (“MutualFirst Financial”) (NASDAQ: MFSF), the holding company for MutualBank. Ronald J. Seiffert, chairman, president and chief executive officer of Northwest Bancshares, Inc., commented, “We are pleased to announce the completion of our merger with MutualFirst Financial, Inc. and MutualBank. The management teams and employees of both Northwest and MutualFirst Financial have worked tirelessly over the past six months to prepare for the integration of our two companies. We believe that this transaction will help deliver value through increased operating scale and new market opportunities. The combined strength of our institutions will allow us to better serve customers across all of our markets with a wide range of financial products and services, while maintaining the personal service they expect from their community bank.” The completion of the merger has resulted in a bank with approximately $12.8 billion in total assets, providing banking services through 214 branch locations and 273 ATMs in four states. The transaction
Northwest Bancshares, Inc., headquartered in Warren, Pennsylvania, recently completed its merger with Mutul First Financial, which has resulted in a bank with approximately $12.8 billion in total assets.
has expanded Northwest’s franchise by 36 full-service offices located in Indiana. Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. (NASDAQ: NWBI) is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a fullservice financial institution offering a complete line of business and personal banking products,
employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. As of March 31, 2020, Northwest operated 170 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York and Ohio. For more information, visit www.northwest.bank.
YOUR BUSINESS: THE NEXT GENERATION For most family businesses, planning for succession is a tough and critical challenge. Yet succession planning can also be a great opportunity to create a multigenerational institution that embodies the family’s values for generations to come. Attorneys at Knox Law provide guidance and counsel helping you to address issues related not only to ownership succession, but also concerns involving estate planning, tax planning, workforce, real estate and intellectual property — planning that will deliver lasting value to your family.
Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | North East | Pittsburgh | Jamestown, NY 814-459-2800 | www.kmgslaw.com
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PEOPLE BUZZ | AWARDS AND PROMOTIONS MANUFACTURER & BUSINESS ASSOCIATION ANNOUNCES BOARD FOR 2020-2021
The Manufacturer & Business Association (MBA) recently announced its 2020-2021 Board of Governors. Chairman Mark Raimy is president and chief executive officer of Welders Supply Company – Raimy Corporation in Erie, the region’s largest supplier of industrial gas, medical gas and hard goods to the manufacturing, health care, laboratory and restaurant industries. Raimy also serves as chair of the UPMC Hamot Board of Directors, a member of the UPMC Board and is chairman of the UPMC Investment Committee Raimy served for nine years as vice president of institutional equity trading for Prudential Equity Group in New York City. He also spent six years as regional vice president at MFS Investment Management in Boston. Raimy earned a bachelor’s degree in economics from Denison University in Ohio. Raimy is joined on the MBA’s Executive Committee by Vice Chairman Steve Jones, president, Ron Jones Hardwood Sales Inc.; Treasurer Kathy Jones, executive and business planning manager, Wabtec Corporation; Immediate Past Chairman Mike Mankosa, executive vice president of Global Technology, Eriez Magnetics; and, NonManufacturing Representative Colleen MooreMezler, president and chief executive officer of Moore Research Services. Secretary is Tammy Lamary-Toman, JD, PHR, vice president and employment counsel of the MBA. New Board members appointed tor three-year terms include: Kyle Blakeslee, general manager of Urick Ductile Solutions, a ductile iron foundry located in Erie. Urick has about 110 employees and is part of the Emerson Electric Corporation, a Fortune 500 company headquartered in St. Louis, Missouri. Blakeslee has been with Urick for four years and oversees all aspects of the business including manufacturing, sales, finance, engineering and human resources. He started his career as
EDINBORO APPOINTS VP OF FINANCE, ADMINISTRATION
Edinboro University recently appointed John M. Hynes as vice president for Finance and Administration.
a manufacturing engineer and has served in various management roles including engineering, operations and sales. He previously held positions at Snap-tite, Bush Industries and Composiflex. Blakeslee is a graduate of Penn State University where he earned a B.S. in Mechanical Engineering. Jon DeArment is president and chief operating officer of Meadville-based CHANNELLOCK®, where he has worked for more than 20 years. As president and COO, he is proud to be part of the fifth generation that’s helping to lead the family owned company. DeArment began his career at CHANNELLOCK® working in the plant during summers while on break from college. Over the years, he worked his way through different areas including maintenance, the machine shop, human resources, sales and marketing, and the manufacturing section of the business. He served as vice president of Manufacturing and Engineering before becoming president and COO in 2014. DeArment earned a Bachelor of Science in Business Management from Gannon University. He also graduated from the Bell Leadership Institute’s Master’s in Leadership Program. He was awarded the 2016 Gannon University SBDC Presidents Award and was a 2017 Pittsburgh Smart 50 Award honoree. He serves as the vice president for the Hand Tools Institute Board of Directors. Jana Goodrich is president and chief executive officer of Seaway Manufacturing in Erie, which manufactures and sells premium replacement windows, patio doors and sunrooms through specialty home improvement dealers in 18 states. Goodrich’s career includes sales for Xerox, as a systems engineer with IBM, owner of Executive Education Services consulting in management, marketing and professional development, and as a consultant and instructor at Penn State Erie. At Behrend, she taught courses in management, marketing, helped develop the Interdisciplinary Business and Engineering program, and directed Behrend’s annual “Business Bridge.”
and Council of Fellows, and advises many projects. Goodrich has served on the board of numerous Erie nonprofit organizations and is a board member of two national organizations, the National Glass Association and the National Sunroom Association. Goodrich received her B.S. in Economics from Allegheny College and an MBA from Penn State. Jeff Plyler, who previously served on the MBA Board from 2014 to 2017, is the president and chief executive officer of Plyler Enterprises, Inc. (Plyler Entry Systems locations in McKean and Hadley, Pennsylvania, Overhead Door Company of Jamestown, New York, and Tri State Door, its wholesale operation in McKean). Plyler Overhead Door Company was founded in 1967 by Jeff’s father, Ernest Plyler. Jeff worked evenings, weekends and summers while in school and, upon graduation in 1978, joined the company full time. In 1979, they hired their first full-time employee, and the company started to grow from there. In 1994, Jeff purchased the company from his father, and Ernest retired. Currently, Plyler Enterprises employs 55 people throughout the operation. The company services both residential and commercial customers, offering garage doors, openers and accessories, entry doors, garage door screens, retractable awnings, patio doors, windows, loading dock levelers, restraints and equipment, as well as hollow metal doors, frames and hardware. In addition to the MBA, the company is a member of the Builders Association of Northwestern Pennsylvania and the International Door Association. Additional members of the MBA Board of Governors include: Debbie Uht, president of Professional Communications Messaging Service, Inc. (PCMSI); Jim Greenleaf, chief executive officer of Greenleaf Corporation; and, Mark Rose, director of Erie Operations at Parker LORD Corporation.
Goodrich was honored with the Penn State University Alumni Fellow award in 2018. She serves on the Black School of Business Executive Council
Hayes begins his new role on July 27. A native of Oil City, Hynes has spent the past six years as director of Business Services for the Beaver Area School District. Prior to his role in Beaver, Hynes spent 17 years as a partner with Excidian, LLC, a Pittsburgh-based firm specializing in business finance training.
Hynes earned bachelor’s and master’s degrees in electrical engineering from the University of Pittsburgh, a Master of Business Administration degree from the Carnegie Mellon Tepper School of Business, and a graduate certificate in accounting from the Keller Graduate School of Management.
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“I know people who went to a number of your competitors and not a single one had as smooth a process as we had with your team at Marquette. They were so efficient, helpful and made this challenging time much less stressful.”
“As always, I appreciate your exceptional work.” – Sean Fedorko, Radius CoWork
– Megan Marsh, Keystone Alliance Mortgage
“I want to sincerely thank you for securing that PPP loan. We appreciate it.” – John Swick, Allegheny Realty Settlement
“I have heard of countless other horror stories from colleagues using other banks and it’s a trail of tears! I’ve been directing them to Marquette to make their lives easier!”
“Thank you very much, you are the best and you made this process so very easy!”
– Mike Alabran, PSN
– Steve Iszkula, DMD, Iszkula Orthodontics
John C. Dill
Jami Sundberg
Jon Patsy
Beverly Schneider
Terry Danko
Jennifer Kuhn
Sarah Giambanco
Kelly Yost
Daniel Walsh
Steve Kightlinger
Katrina Vincent
Sherry Waller
“I can’t thank you enough.”
“I want to take the time to thank you and all the members of your team. I’m sure you hear many stories, but you helped keep a number of people employed. Thank you.” – Dr. Julie Hauser, Hauser Vision Care
– Cheryl Ervin, Ace Contractor Center
“I called Marquette at 2:30 in the afternoon and they had it processed and an SBA number for me the same day. This is after the bank I have dealt with for 26 years couldn’t do it in eight days.“ – Brian Trace, Trace Lawn & Landscaping
“I appreciate how easy you and your team at Marquette made this for me. You and your team have been a blessing to me. ” – Tim Vogt, Vogt Heating & Cooling
“Just a quick follow-up to the PPP application process. Thank you for all your assistance…even on weekends you were right on it!” – Jerry Slomski, The Slomski Group
That’s why we’re here.
ON THE HILL | PROFILE
Building the Future:
W.K. Thomas & Associates General Contractors Eileen Anderson is the director of government relations at SMC Business Councils (SMC), which merged with the Manufacturer & Business Association (MBA) in 2019. Contact her at 412/342-1606 or eileenanderson@smc.org. Editor’s Note: This story was based on an interview before the closure of non-lifesustaining businesses was in place. There are many reasons why family businesses fail. Knowing that, it makes W.K. Thomas & Associates, which recently celebrated its 45th anniversary, an even more remarkable company. Bill Thomas founded W.K. Thomas and Associates (www.wkthomas.net) in 1974 after working as a project manager for a Butler home builder. Over the next 10 years, his company became one of the area’s top custom home builders. The recession of the 1980s challenged the housing industry with interest rates topping 18 percent. That led W.K. Thomas to transition to commercial construction. Bill acquired a Butler Pre-Engineered building franchise in 1990, giving the company the flexibility to expand into manufacturing and industrial construction. Bill’s son Brent was a youngster when his dad started the company. Like many kids growing up in the family business, he
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learned the basic aspects of construction from the ground up. Brent remembers his dad working long hours and recalls the uncertainty of knowing where the next job would come from. Construction was a risky business swinging from boom to bust. Although Bill encouraged his son to someday join the family business, Brent wanted a career with stability. He graduated from Grove City College with a business management degree and took a job with Napco, a building products manufacturer. The company was bought out, and as he watched colleagues lose jobs, he realized there was job risk in any industry. That propelled him to consider working for himself, and the possibility of joining the family business became a viable option. Around that time Brent built his own home and discovered he enjoyed the construction process. In 1998, Bill suffered a heart attack and offered Brent one last chance to join the family business. Brent agreed to a “trial run,” and came on board officially in 1999. Bill introduced Brent to clients, taught him the essentials of markup, estimating and sales, and finally retired in 2008. Fortunately, Bill did not micromanage his son, another potential family business hurdle. Brent continued building fire halls, churches and medical offices, while taking on larger commercial projects. Today, W.K. Thomas works with many different types of
businesses. In 2018, Butler Manufacturing named W.K. Thomas “Builder of the Year” for the entire Eastern United States and Canada among a field of 600 companies. A large percentage of W.K. Thomas’ work comes by referral — the hallmark metric of a good reputation — and is within a 100-mile radius from Butler. After 20 years, Brent has no regrets about his decision to join the family business. He finds it rewarding to see their buildings around the countryside and values the many relationships built with customers over the years. Brent is also tackling a succession plan, another potential family business hurdle. He and a consultant are working through a long-term process. In the next stage of his working life, Brent’s goal is to leave behind the long hours and stressful days. Weather scheduling delays are unavoidable. Compliance with regulations and permitting pose significant challenges. Combined they can add up to six months to construction times and increased costs. Brent attributes much of his success to his team. He has six full-time employees and a group of loyal sub-contractors. Several are third generation and have worked for the company for more than 40 years. He knows he is fortunate, but times are changing. Several contractors have had difficulty finding subs in some trades. This is exactly what the MBA’s annual MFG Day celebration addresses — the encouragement of young people to train for the trades. We hope to see you on October 14, 2020. To learn more, visit www.mbausa.org.
HR CONNECTION | WORKPLACE TRENDS MAJORITY OF GLOBAL FAMILY BUSINESSES, CEOS DON’T HAVE FORMAL RETIREMENT, SUCCESSION PLANS
More than half of global family CEOs do not have a formal retirement plan and 70 percent of global family businesses do not have a formal succession plan, according to the 2019 STEP Global Family Business Survey, The impact of changing demographics on family business succession planning and governance. However, the report finds that Millennial CEOs are ready to take over.
Life After Lockdown: Focus Your Safety Resources On Cost Containment and Risk Reduction For the past two months, all U.S. organizations have dedicated tremendous resources reacting to the COVID-19 outbreak. As businesses begin to move toward normalcy, it is of vital importance that leaders identify ways to strategically contain costs and manage their risks. A helpful first place to start is the OSHA Top 10 list of most frequently cited standards. By aggregating violations from 2019 into similar regulations, you will find that about 75 percent of the violations and fines are focused on three primary hazard areas: Machines, Materials and Movement. Area
Regulations
Fines
Average Fine
Machines
Electrical Safety, Lockout/Tagout, Machine Guarding
$ 27,630,581
$ 13,270
Materials
Air Contaminants, Hazard Communication, Personal Protective Equipment (PPE, Respiratory Protection
$ 6,526,092
$ 7,681
Movement
Powered Industrial Trucks, Walking & Working Surfaces
$ 5,287,780
$ 6,493
“Demographics have changed significantly over the past century and unfortunately, our knowledge and understanding of business families has not adapted to those changes,” said Babson Entrepreneurship Professor Matt Allen. “In particular, longer life expectancy combined with changing expectations regarding work and leisure are putting significant strain on business families as they adapt to situations that prior generations never dreamed of.” Additional key findings: • Successors’ self-commitment and competence are the criteria for selecting the next CEO. • 47 percent of global family businesses have a succession plan in case of unexpected events. • 45 percent of global family business leaders state that ownership will stay in family hands. • Generation X and Millennial CEOs do not see that the next CEO should be from the family.
STUDY: 25 PERCENT OF MANAGERS SAY MANAGING MULTIPLE GENERATIONS IS A CHALLENGE
Machines: The three regulations that address machine risks account for nearly 40 percent of all violations and 50 percent of the fines. OSHA’s long-running National Emphasis Program (NEP) on amputations provides a guide on how to prevent hazards related to moving machine parts, isolation of hazardous energy sources, and electrical systems. Materials: The regulations that protect against material hazards include airborne contaminants, hazard communication, PPE and respiratory protection. Chemical exposure control is clearly an OSHA priority. However, proper selection, use and training on PPE and respiratory protection will be even more critical to meet state and local COVID-19 return to work requirements. Movement: Violations related to the movement of people and equipment, including powered industrial trucks (PIT) and employee slip/trip/fall exposures, is the third focus area. OSHA is considering revising the PIT standard to further reduce material handling risks. Machines, materials and movement create significant risk for the manufacturing sector and account for almost 75 percent of OSHA violations and fines. Controlling these risks will also reduce severe and costly injuries.
Today’s workforce is more age-diverse than ever before, with Baby Boomers, Generation Xers, Millennials, and Generation Zers — and soon including the newly coined Generation Alpha born after 2010 — all sharing workspace. With all these different generations in the modern workforce spanning the ages from 16 to 72, managing employees in a way that promotes good will, productivity and efficiency is more important than ever. A recent Walden University study showed that 25 percent of managers reported that managing multiple generations within the workforce was a challenge, and among employees themselves, 77 percent identified different work expectations as a chief concern in working with members of other generations. For those supervisors looking to prepare, here are three things you can do now to successfully manage a multi-generational workforce: 1. Understand each generation and their expectations at work.
Todd Allshouse, CIH, CSP,
2. Manage the intergenerational divide by emphasizing strengths.
is the director of Health and Safety Services at Compliance Management International (CMI). Contact him at 800/701-9369 or visit www.complianceplace.com.
3. Unify generations through coaching practices.
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HR Q&A | GET ANSWERS CAN MINORS UNDER THE AGE OF 14 BE EMPLOYED? IF SO, DO THEY NEED A WORK PERMIT? Yes, minors under the age of 14 can be employed in certain situations; however, they do not need to obtain a work permit. Minors under the age of 14 can be employed as follows: 1) an individual who is at least 12 years of age may be employed as a caddy if the minor does not carry more than one golf bag at a time and employment is not for more than 18 holes of golf in a single day, and 2) an individual who is at least 11 years of age may deliver newspapers. ARE THERE CERTAIN OCCUPATIONS OR JOBS THAT A MINOR CANNOT PERFORM? Yes. Under the Pennsylvania Child Labor Act, Section 4, titled “Occupations and establishments,” minors may not be employed in hazardous or otherwise prohibited establishments or occupations. For more information, review Section 4 of the Pennsylvania Child Labor Act. ONCE A WORK PERMIT IS ISSUED, HOW ARE SCHOOL DISTRICTS SUPPOSED TO KNOW IF A STUDENT CHANGES JOBS? Each employer is required by law to notify the school district, in writing, each time a student is hired and when the student is no longer employed. This must be done within five days of the student starting or ending employment. HAVE AN HR OR EMPLOYMENT LAW QUESTION? GET ANSWERS FROM THE MBA’S HR & LEGAL TEAM! Whether it’s a simple employment question or complex legal issue, the Manufacturer & Business Association’s HR & Legal Services Division is here to assist you. MBA members can take advantage of our many value-added programs and services — from surveys and posters, to our free HR and Legal Hotline, and monthly roundtable discussions, as well as complimentary subscriptions to our timely HR in Review newsletter and monthly member publication, the MBA Business Magazine. We also offer the expert training and certification required for new, mid-career and executive level HR professionals. Contact the MBA’s HR & Legal team today at 814/833-3200 or 800/815-2660, or email hrservices@mbausa.org.
What Employers Should Know About Child Labor Laws The federal Fair Labor Standards Act (FLSA) regulates employment conditions and restrictions for underage workers, including the minimum age to work, the number of hours a minor can work and acceptable occupations for underage workers. In Pennsylvania, employers who wish to employ individuals under the age of 18 must also comply with the state’s Child Labor Act (CLA). When both state and federal child labor provisions overlap, employers must comply with the law that provides the broadest protection to minors. The Department of Labor and Industry (DLI) oversees compliance with and enforcement of the CLA within the state. Minimum Age Requirements As a general rule, individuals in Pennsylvania are not allowed to work in any occupation until they are at least 14 years of age. Rest Breaks Employers are required to provide all minors who work more than five continuous hours with a rest break. All breaks must be at least 30 minutes long and may not be interrupted. For additional information regarding employment certificates, record keeping, hours of employment (including night work), prohibited occupations and penalties, please download a copy of the LLC-5, Abstract of the Child Labor Act, Revised 1/13. Form No. LLC-5 (ESP) (1-13). CLA violations are criminal offenses and are subject to fines of up to $500 per offense. Repeat violators are subject to $1,500 fines and up to 10 days of imprisonment. The DLI may also impose administrative penalties of up to $5,000 for violations that are not enforced through a criminal penalty. For more information, contact the Association’s HR & Legal Services Divisions at 814/8333200, 800/815-2660 or hrservices@mbausa.org.
Rose Bruno, PHR, SHRM-CP, is an HR consultant at the Manufacturer & Business Association. Contact her at rbruno@mbausa.org.
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SPECIAL SECTION | RECOGNITION
The Manufacturer & Business Association is proud to salute the many family businesses across our region and the numerous contributions they make to our economy, communities and quality of life. Shown here are a few of the family operations that have graced the cover of the MBA Business Magazine over the years!
ES S BMUA SG IN A Z I N E Manufacturer & Business Associat
ion
VOLUME XXV, NUMBER 11
NOVEMBE R 2012
BUSINESSMAGAZINE VOLUME XIX, NUMBER 9
SEPTEMBER 2006
VOL. XVII, NO. 2
FEBRUARY 2004
BUSINESSMAGAZINE VOLUME XX, NUMBER 3
MANUFACTURERS’ A SSO CIATION OF NO RTHWEST PENNSYLV ANIA
MARCH 2007
MANUFACTURERS’ A SSO CIATION OF NO RTHWEST PENNSYLV ANIA
Mechanical Contracting Firm Builds on Page 10 Old-Fashioned Values, New Technology / Business Magazine s September 2006 1
S S E BMUA SG IN E N I A Z Manufacturer & Business Associat
ion
VOLUME XXVIII, NUMBER 4
BUSINESS
APRIL 2015
VOL. XXIX NO. 8 | AUGUST 2016
MAG AZIN E
RABE ENVIRONMENTAL SYSTEMS
SPOTLIGHT Q&A:
THE BIG IMPACT OF A SMALL, FAMILY OWNED COMPANY
BUSINESS R 2017 VOL. XXX NO. 11 | NOVEMBE
A Customized Experience in Custom Building, / Page 12 Property Management and Real-Estate Sales
MAG AZIN E
BUSINESS
VOL. XXXII NO. 8 | AUGUST 2019
S S E BMUA SG IN E N I Z A Manufacturer & Business Associat
ion
VOLUME XXVII, NUMBER 8
AUGUST 2014
MAG AZIN E
SpOTlIGhT Q&A:
50 YEARS STRONG
NailiNg DowN the Future oF the CoNstruCtioN iNDustry
SPOTLIGHT Q&A:
plUS:
PENN UNITED TECHNOLOGIES PROPELS INNOVATION, INVESTM ENT
MBa CeleBrates More thaN 100 traiNiNg graDuates FAMILY OWNED FIRM CELEBRAT ES LEGACY OF BUILDING EXCELLEN CE
Calvin Ernst, Founder and President
50 Years and Still Growing / Page 12
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ON THE HILL:
NEW LEGISLATION TO ENERGIZE PENNSYLVANIA’S INFRASTRUCTURE
A CENTURY OF FAMILY BUSINESS
ELECTION 2016:
SUCCESS
WHAT THE NEXT SUPREME COURT NOMINEE COULD MEAN TO YOU
J.V. Manufacturing Co., Inc. “Designers and Builders of the BETTER Carbide Dies”
1603 Burtner Road Natrona Heights, PA 15065 Phone: 724-224-1704 Fax: 724-224-7728 jvmfgco.com
CO M PAN Y PR O FIL E
A Manufacturing Family 45 Years in the Making Not all stamping and die manufacturers start out in a back room of a dairy farm. But 45 years ago, John Vecchi wanted to do something different. And he did. More than four decades later, John’s ingenuity, a spirit of innovation, and a commitment to family endure in J.V. Manufacturing Co., Inc. What started as a close-knit group of friends in Sarver has grown to an extended family of manufacturing experts at JVM’s headquarters in Natrona Heights. Core values of loyalty, dedication and trust shared between employees, customers, leadership and each other, continue to drive the company today. Now in its third generation of leadership, with a fourth generation close on its heels, John’s grandson Ryan Vecchi leads JVM as vice president. With an organizational ethos that started in 1975 and continues today, JVM actively works to deliver value to both employees and customers by taking care of everyone like family — while fulfilling every customer need on-time, on-spec, and on-budget. Products As a carbide dies and component manufacturer, JVM is focused on providing a suite of expertise and specialization in carbide services, including
design and engineering, precision surface grinding, jig grinding, EDM, machining, heat treating, die assembly, stamping and PEM technologies. Products serve a local, regional, national and global companies within the aerospace, appliance, automotive, consumer product, cosmetic, green product, medical and nuclear power industries. “We do everything in our power to ensure that our customers can meet tight specifications and customizations, tight tolerances, and even tighter deadlines. Our commitment to quality has kept our customers and our employees coming back since 1975. It’s also a major factor that has contributed to our growth over the years,” says Ryan Vecchi. Capabilities With a significant breadth and depth of engineering and design experience, along with a commitment to continuous improvements and investments in high-quality and high-value people and capital equipment, JVM offers a full range of high-speed, high-production carbide progressive stamping die production services. Unwavering attention to detail, a willingness to create and customize the right customer solutions, and a dedication to making sure every job is done right the first time, is what sets JVM apart from in the industry. A combination of engineering knowhow and state-of-the-art equipment means that JVM continuously produces the better carbide dies available anywhere. “My grandpa, John Vecchi, used to say that if you say you’re the best at what you do, anyone else can say they’re the best at it too,” says Ryan Vecchi. “That’s why we say ‘better.’ Because you can always be the best, but only one can be better.” JVM understands how important it is for companies to have high-speed, high-production carbide progressive stamping dies and the support components they need, exactly how and when they need them. By investing in high-quality people and equipment, J.V. Manufacturing Co. Inc. ensures all products manufactured meet customer
specifications and capabilities, and they are constantly improving and expanding capabilities. Specific Capabilities • Die Design • Stamping • Component Manufacturing • PEM • Design & Engineering • Precision Surface Grinding • Jig Grinding • EDM • Machining • Heat Treating • And more! Like many manufacturing companies in southwestern Pennsylvania and across the nation, the COVID-19 pandemic has presented JVM with challenges and opportunities. The company has ramped up production by incorporating split shifts for continuous production capabilities, as well as assisted customers across industries in special production missions for COVID-related products, such as PPE gear for first-responders and healthcare workers. Like the family they are, JVM’s leadership has committed to taking care of employees during the pandemic as well. The company has offered special enrichment, engagement, social and wellness activities to connect across the plant and at home, as well as creating and sharing stockpiles of essential and hard-to-source goods, like cleaning products. Additionally, the company provided employees with a special one-time COVID-19 bonus to support families who may be experiencing hardships during this time, such as spousal layoffs. “We are a small village,” explains Melissa Vecchi, JVM’s executive director. “We take care of each other, and we take care of our customers. We always have, and now, more than ever, we always will.”
mbabizmag.com • JUNE 2020
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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
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