March 2009 Business Magazine by MBA Business Magazine

GEORGE W. BUSH

43rd President of the United States

104 Annual Event th

Wednesday, June 17 Bayfront Convention Center 5:30 Member Cocktail Reception Reservations: Please call Tracy Shepard at 814/833-3200 or 800/815-2660

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

VOLUME XXII, NUMBER 3

MARCH 2009

Sunburst Electronics Radiating Growth pg.10

Erie-based electronics contract manufacturer expands footprint with value-added services

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EDITORIAL >

FEATURES >

5 / Health Matters

3 / Spotlight

A sensible approach to taking control of specialty drugs – and their costs.

7 / Legal Brief

Erie Insurance Group President and CEO Terrence Cavanaugh discusses the transition to his new position as well as the challenges and opportunities facing the insurance industry.

How to navigate immigration issues before making an offer of employment.

10 / Sunburst Electronics

CHRONIS MANOLIS

GREGORY ZIMMERMAN

9 / Financial Adviser A business owner’s guide to surviving tough economic times. CRAIG C. MOFFATT, CPA

23 / Tech News Is virtualization right for your business? NED READE

Discover how this Erie-based electronics contract manufacturer is steadily and systematically increasing its productivity and expanding its footprint in the tri-state region.

17 / Key Vote Award

Learn about the new Key Vote Award and how the Association’s Government Affairs Department will be tracking “key votes” of Pennsylvania legislators at both the state and federal levels.

4 20

EVENTS > 20 / Outstanding Citizen Award See photo coverage of the 50th Outstanding Citizen Award ceremony held for Hamot Health Foundation President and CEO John Malone, during a reception co-sponsored by Americans for the Competitive Enterprise System and the Business Magazine.

DEPARTMENTS > 4 / Business Buzz 14 / HR Connection

17 / On The Hill 18 / Legal Q&A 24 / People Buzz

President George W. Bush will be the featured speaker at the Association’s 104th Annual Event on June 17 at the Bayfront Convention Center in Erie. See the digital edition of this month’s Business Magazine on www.mbausa.org for more details.

March 2009 > www.mbausa.org > 1

March 26th, 9:00am-2:30pm Ambassador Hotel and Conference Center Lunch and Breakfast Provided

Find the right e-marketing mix to boost your business. Do you consider digital marketing a language you don’t speak? Come to this mixer and see what’s possible with digital marketing! We’ve rounded up local experts who have developed powerful strategies and technologies for marketing online. If you attend, you will gain an in-depth look at digital marketing strategies and the technologies that enable them such as lead management, simple content management, e-mail marketing and more. These technologies will allow you to attract, convert, and retain your customers. What you’ll gain: UÊÊ1 `iÀÃÌ> ` }Ê vÊÀi} > Êi >À iÌ }ÊV>«>L Ì iÃÊÌ À Õ} Ê«ÀiÃi Ì>Ì ÃÊLÞÊÌ iÊiÝ«iÀÌÃ UÊÊ Õ V ÊÃi >ÀÊ Êº } Ì> Ê >À iÌ }Ê`ÕÀ }Ê V VÊ Ü ÌÕÀ »Ê UÊÊ >Ã ÞÊ iiÌÊ> `ÊÃ ÕÀViÊ« Ìi Ì > ÊÃiÀÛ ViÊ«À Û `iÀÃÊ Ê>Ê Ê«ÀiÃÃÕÀiÊi Û À i Ì

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Visit www.emarketinglearningcenter.org/DigitalMixer to register or for more information.

@ ebizITPA 5340 Fryling Road Suite 201 - Knowledge Park - Erie, PA 16510 - 814.898.6500

SPOTLIGHT > by Karen Torres Terrence W. Cavanaugh is president and chief executive officer of Erie Insurance Group (ERIE), the 21st largest property/casualty insurer in the United States based on total lines of net premiums written. The company, founded in 1925, is also the 16th largest auto insurer in the country based on direct premiums written, and the third largest auto insurer in Pennsylvania. Cavanaugh joined ERIE in July 2008 after a distinguished 33-year career with the Chubb Group of Insurance Companies.

Welcome to Erie, Pennsylvania and ERIE Insurance Group. What are your impressions of ERIE so far? If you’ve worked in the business as long as I have, you can’t help but know ERIE. It has a reputation as the kind of company that is unwavering in its purpose and its integrity. I’ve found that to be true. It’s reflected in the company motto coined back in the 1930s — The ERIE is Above All in SERVICESM. We still use that motto in conveying our brand, and ERIE employees and agents deliver it each day on the job. And people notice. ERIE achieves top positioning in various J.D. Power customer surveys and last year, Business Week magazine placed us on its top 50 list of Customer Service Elite. ERIE Insurance Group is one of the largest and most highly regarded employers within our region. What are some of the key elements behind the success of your company? First is our people — ERIE employees and agents. They hold fiercely to the values established and shared through more than eight decades. From a business perspective, our work force has engagement levels that are the envy of any company. That relates strongly to our ability to execute and impact the bottom line. The other key element is the vision of our founder, who defined our purpose and established a business model that has not just endured, but has built and sustained a high level of customer loyalty. ERIE’s retention rate is one of the best in the industry. What has impressed you most about ERIE Insurance Group? I continue to be impressed by the loyalty employees and agents share for ERIE. After I had accepted my position at ERIE, but before that fact was widely known, my wife and I were vacationing in Delaware. We were leaving church and noticed an Erie Insurance fleet car in the parking lot. I asked the employee driving it, who had no idea I was ERIE’s new CEO, what he thought of ERIE. As I listened to him extol ERIE as a great employer, insurer and corporate citizen, I realized that “positive attitude” is a rare and valued asset of ERIE’s. It’s what we like to call “bleeding ERIE blue.” The downturn of the U.S. economy and the global financial markets directly or indirectly impacts all businesses. What are some of the specific challenges to your industry? For the insurance market — as for most sectors — a key challenge is growing revenue in a depressed economy. If this downturn in the global and U.S. economies continues through the first half of 2009 as analysts project, the impact on deteriorating investment results will add to that revenue pressure. In addition, insurers will be dealing with declines in exposure growth and increases in loss severity. What changes do you see within your industry? Within my lifetime, insurance products have changed dramatically. Insurance started out as a property business — protecting homes from the threat of fires and cars from the risk of collision. The majority of the premium today is from product liability. We also have professional liability for everything from hairdressers to board directors. The world is changing in terms of the complexity of risk. Additionally, in insurance as in other fields, technology has become a differentiator. Consumers can get whatever they want in the way they want it. That means we have to be the best in delivering our value proposition and have the right technology in place to respond quickly to customers’ and agents’ needs. What is your approach in navigating ERIE through these challenging economic times? I’ve been talking about my impressions of ERIE, but it’s the customers’ impression that counts. We’re focusing on meeting evolving customer expectations and what we can do to turn first impressions into lasting ones. In 2008, ERIE was the top insurer in J.D. Power and Associates’ study of the auto insurance purchase experience. That’s due in great part to the personal service and insurance acumen of the independent agents who represent us. We have to continue to provide the greatest insurance value. The delicate balance of price, service coverage and financial security must continue to resonate with our customers and prospects. What are some opportunities for your company in the next several years? Certainly, there are opportunities for businesses to better connect with the way people live today — and we’re looking at those. When The ERIE was founded in 1925, the combustion engine was just being harnessed for the personal automobile. Our founders recognized that as consumers became more affluent and autos became more affordable, auto ownership would boom — and with it, the market for personal auto coverage. We’re poised to recognize similar prospects in 2009 and beyond. We recently made changes to better align our organizational structure that will allow us to increase our skill set, improve our agility in the market, and expand our products and services. We have a real opportunity and responsibility here to continue to improve our business model and our balance sheet to win in this environment.

VOL. X XII, NO. 3 MARCH 2009

Manufacturer & Business Association Board of Governors

Dale Deist Gerald B. Eighmy Scott M. Hanaway Dan Ignasiak Mark C. Kulyk William F. Muck John B. Pellegrino Sr. Dennis Prischak Timothy G. Shuttleworth Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo rpontillo@mbausa.org Executive Editor John Krahe jkrahe@mbausa.org Managing Editor & Karen Torres Senior Writer ktorres@mbausa.org Contributing Chronis Manolis Writers Craig Moffatt Ned Reade Gregory Zimmerman Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Photography Bruce Bennett Photography 814/899-1161 Design, Production Printing Concepts Inc. & Printing printcon@erie.net

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 2009 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.

March 2009 > www.mbausa.org > 3

Business Buzz

DEPARTMENTS > Contact: Karen Torres

IMS SYSTEMS HOLDS BUILDING DEDICATION

can be manufactured in the Erie region.

IMS Systems, Inc. dedicated its new building at 519 Myoma Road in Mars, near Pittsburgh, at a recent ribbon-cutting ceremony. The new 8,500 square-foot facility houses the company’s North American operations, and will be used to expand services to include equipment repair and conduct customer training.

An InnovationErie panel will judge applications, which are due by midnight March 2, 2009. Semi-finalists’ entries will be exhibited for public display at the Erie Art Museum from May 8 through June 27.

According to the company, the new building features metal products that IMS gauges measured during manufacturing. They include a Nucor seamed metal roof and gutters, and a ThyssenKrupp elevator.

At the ceremony were Paul Flormann, one of the company’s original founders, as well as IMS President Rainer Fackert, and Hendrik Schultes, CFO. Guests included design architect Victoria Burns, Tim Chase of Manning Construction, Rick Wenzel of Gateway Engineers, and Gerry Kane and Mark Didiano of the Association for Iron and Steel Technology.

IMS is a leading manufacturer of X-ray, isotope and optical measuring systems that gauge the length, width, thickness, flatness, coating weight, cross-profile and speed of hot and cold ferrous and non-ferrous strip and plate. The company’s world headquarters is in Heiligenhaus, Germany, near Düsseldorf. For more information, visit the company’s Web site at www.ims-gmbh.de.

DEADLINE LOOMS FOR ‘INNOVATIONERIE’ The “InnovationErie: Design Competition” is taking applications to allow people with a

MACHINING FABRICATING ASSEMBLING 3-D LASER GRINDING BROACHING MILLING PUNCHING CUTTING

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connection to Erie to show off their product ideas, with the possibility of taking them to the next level: the marketplace. The competition seeks ideas for products that

BENDING FORMING ROBOTIC WELDING HIGH-SPEED SAWING SPLINING & GEARING HIGH-DEFINITION PLASMA BURNING BEARING CAP & HOUSINGS LINE

TWO FLEXIBLE MACHINING CELLS HIGH SPEED DRILLING AND TAPPING CELL NEW MAZAK NEXUS 450 CNC LATHE 22” DIA X 80” POWDER COATING

InnovationErie is the creation of “SAM & ED” (Science, Art, Manufacturing, Engineering, Design), a regional, voluntary unincorporated collaborative that serves as a catalyst for interdisciplinary initiatives. A grand prize of $10,000 and in-kind product development and business planning services valued at $7,000 will be awarded. Partners include the Northwest Pennsylvania Industrial Resource Center; Ben Franklin Technology Partners; STARTUP Incubator; Edinboro University; Northwestern and Erie Keystone Innovation Zones; MacDonald, Illig, Jones & Britton; Knox McLaughlin Gornall & Sennett; eBizITPA; Erie Times-News; GoErie. com; Erie Art Museum; Penn State Erie - the Behrend College and the Plastics Technology Center at Penn State Behrend. For more information, visit the Web site www.innovationerie.net.

EDITORIAL > by Chronis Manolis

Health Matters Taking Control of Specialty Drugs In the past decade, specialty drugs have helped bring about advances in medicine that have greatly improved the quality of care. At the same time, these drugs have raised the cost of health care and have become a matter of concern for employers. According to the America’s Health Insurance Plans (AHIP), specialty drugs account for $54 billion in drug spending annually. While only 1 percent of patients use specialty drugs, this usage accounts for approximately 20 percent of drug spending. The annual cost per patient ranges from $10,000 to more than $1 million. By 2010, U.S. specialty prescription spending is expected to reach $99 billion as the volume of new specialty products continues to pour into the market. The issue of specialty drugs has certainly gotten the attention of many employer groups. According to a recent survey, 45 percent of large employers (with 500 or more employees) say they recently reviewed their plan benefits or their limits for specialty or biotech drugs, an increase from the 34 percent that did so in 2005. Taking control of specialty drug costs is not easy and no one method is right for all employers. However, an approach that incorporates evidencebased best clinical practices with sound cost-containment methods ensures the most sensible way to approach the problem. What is a Specialty Drug? A specialty drug is defined as a drug that requires a complex delivery system as well as a cost that exceeds $5,000 per patient per year. The average cost is over $1,500 per month and is typically prescribed to treat rare, complex or chronic diseases. These high-cost injectable or oral drugs typically involve intensive

clinical monitoring and patient training. Specialized handling of the drug may be required, as well as frequent dosing adjustments to ensure proper treatment. Specialty drugs are sometimes limited or restricted to certain distribution channels, specifically specialty pharmacies. What are Some Strategies for Effective Management of Specialty Drugs? Effective specialty pharmacy management requires a holistic approach to provide cost containment and management of this class of medications. 1. Utilization management Employers should make sure that specialty medications have utilization management techniques in place, such as prior authorization and quantity limits, to ensure appropriate use of these costly medications in accordance with Food and Drug Administration (FDA) guidelines. These techniques focus on getting the right drug to the right person in the right amount. 2. Channel management Specialty drugs may require special distribution because of their significant cost and unique handling requirements, such as the need for refrigeration. In addition, using specialty pharmacies helps to control the distribution of specialty drugs to provide high touch clinical management of the patient, including counseling and training on the use of the medication as well as better pricing and enhanced reporting. 3. Clinical management Managing the specialty pharmacy benefit means understanding that people who require specialty drugs also require special care.

Many specialty pharmacies offer the following benefits to ensure the proper clinical management of the patient: • Proactively calling a patient’s doctor when necessary to confirm therapy regimens, side-effect management and ancillary supply requirements. • Performing coverage and compliance-monitored clinical reviews. • Counseling patients on disease education and on how to properly use the drugs they are prescribed. Utilization management, channel management, and clinical management all support a multipronged strategy of evidencebased clinical management and sound cost containment to effectively manage specialty drugs. For more information, contact UPMC Health Plan at 1-888-383-UPMC or visit www.upmchealthplan.com. Chronis Manolis is the Vice President, Pharmacy Services, at UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division – which includes UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and EBenefits – and which offer a full range of insurance programs and products.

March 2009 > www.mbausa.org > 5

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The Hold-N-Scan process involves holding your records while scanning them into digital format. This process can be arranged on a monthly basis, at a pace specified by our client, in order to match a set budget. Pirrello Enterprises is aware of the challenges record managers face when trying to budget for the storage and/or conversion of their records. In an attempt to alleviate the headache of budget constraints, Pirrello Enterprises has developed Hold-N-Scan. Hold-N-Scan allows clients to convert their records to digital images over a specified period of time. This allows facilites to split the cost of converting their records into multiple budget years while the records are at Pirrello Enterprises Facility. The records are immediately removed freeing up precious office space and then are returned to you in a convenient electronic form on a monthly basis. Why throw your precious budget dollars away on off-site storage and only have a bill to show for it? Using Pirrello Enterprises you will receive digitized records for instant access plus, at the end of your contract you own your electronic records. No more storage fees ever!! Pirrello Enterprises Inc. is committed to working with each customer to devise the best fit for their budget.

Why choose Pirrello Enterprises? Simultaneous access to information No capital investment Free basic set-up and support Hold-n-Scan with digital records on site Each CD can hold approximately 20,000 images Print fax and e-mail capabilities Eliminates the need for a permanent file area Superior customer service

Pirrello Pirrello Enterprises Inc. Enterprises Inc. Erie, PA Phone: 814/454-7984 Fax: 814/454-7986 www.pirrelloenterprises.com

Legal Brief

EDITORIAL > by Gregory Zimmerman

What Are Your Foreign Workers’ Intentions, And Why Should Your Business Care? Every year thousands of foreign nationals enter the United States, some legally and some not so legally. For those who enter legally (the latter is a discussion for another day), the issue of immigrant intent becomes very important, and should be understood by any business that decides to employ or train that individual. The United States presumes that every foreign national entering the United States intends to immigrate until he or she establishes to the satisfaction of the relevant immigration authority that he or she is eligible for non-immigrant status. In the business setting, most visas that are issued are non-immigrant visas where the foreign national is expected to remain in the United States for a fixed period of time and then return home to his or her native country. That fixed period of time is normally spent either in training or employment. When applying for a non-immigrant visa, the foreign national must establish that he or she has no intention of abandoning a residence abroad. This expression of the foreign national’s “intent” when applying for the visa can become a problem if that “intent” changes. Consider This As an example, American businesses often receive resumes from foreign nationals who recently graduated from an American university and may possess qualifications that would be valuable to the business. The applicant likely studied in the United States under an F visa, which is a student visa that carries with it non-immigrant intent. If, however, the student now wants to work in the United States and not return home, an “intent” problem can develop because

the F visa does not allow the student to work permanently in the States. If the student, with help from the employer, tried to apply for permanent residency based upon the job offer, his application would be denied because of the immigrant intent problem. In order to fix this problem, the employer should really obtain a “dual intent” visa first, such as an H1-B visa, which eliminates the intent problem for the student. The same logic would apply when the foreign national is here on a J or H3 visa (trainee), as well as B1 and B2 visitor visas. TN/NAFTA In northwestern Pennsylvania and western New York, employers frequently encounter Canadian professionals who seek employment in the United States through TN/NAFTA. While not technically a visa, TN status permits a Canadian professional to work in the United States, with the caveat that the TN holder must not have the intent to establish a permanent residence in the United States. Since TN status can now be renewed every three years, it is not uncommon for TN holders and their employers to want to make the employment relationship permanent. If the employer begins the permanent residence process for the TN holder, any future TN applications could be denied, or the TN holder could be denied re-admission into the United States following a trip abroad, because of the conflict between the non-immigrant TN status and the filing by the employer seeking permanent residence status. As such, like the students, trainees and business visitors who desire to become permanent residents, the TN holders should also consider applying for a dual intent visa such as an H1-B or L-1 visa.

Before Extending Offer of Employment, Plan Accordingly Any time that a foreign national enters the United States legally, he or she makes an expression of immigrant or non-immigrant intent that is controlled largely by the nature of the visa controlling their stay. This is true in both the business setting and those entering the United States for family reasons. When that same foreign national decides to change plans, not return home and stay permanently in the United States, a detailed analysis including the intent doctrine must occur. Careful analysis and planning before making offers of employment, entering into marriage, or taking any steps that will alter the foreign national’s activities and tenure in the United States is vital to successfully navigating the complex world of U.S. immigration. For more information regarding immigration issues, contact Gregory Zimmerman at MacDonald, Illig, Jones & Britton, LLP at 814/870-7663 or gzimmerman@mijb.com.

Gregory Zimmerman is the chair of the immigration group at MacDonald, Illig, Jones & Britton, LLP and is a member of the American Immigration Lawyers Association. He is licensed to practice law in both Pennsylvania and New York.

March 2009 > www.mbausa.org > 7

EDITORIAL > by Craig C. Moffatt, CPA

Financial Adviser A Business Owner’s Guide to Surviving Tough Economic Times Among the diciest issues business owners will face in our downturned economy are lower consumer spending, rising unemployment, tightening bank credit and inflation. These pressures not only affect businesses but also customers, and likely will result in reduced business opportunities, decreased cash flow and lower profit margins. To minimize potential reductions in cash flows and profit margins, businesses should place greater emphasis on budgeting. Budgeting can encompass elements of break-even analysis, income and cash flow projections and can be tweaked by industry benchmarking. Effective Budgeting A budget is basically an extension of one’s business plan and strategy in quantifiable financial terms. A good budget determines how a business will make and use money and whether the owner can achieve his or her financial goals. To do so, a business should prepare a break-even analysis, showing the amount of revenue needed to cover expenses and overhead before making a penny of profit. In preparing this analysis, be sure to make the following estimates and calculations: • Annual fixed costs – expenses not affected by sales and that don’t vary month to month. • Average selling price – price received per unit of sales. • Average gross profit from each sale – money left from each sale after paying direct costs. • Average gross profit percentage – the portion of each dollar that is gross profit. This percentage is the

average gross profit from each sale divided by the average selling price. To calculate break-even points, divide the estimated annual fixed costs by the gross profit percentage. This will determine the amount of sales the business needs to break even. If the point is higher than expected revenues, or the profit is lower than expected, the business will need to adjust the budget such as increasing prices, finding cheaper supplies or reducing the work force. Income and Cash Flow Projections A budget should incorporate income and cash flow projections. An income projection summarizes all revenues and expenses (including noncash expenditures such as depreciation) and attempts to determine monthly and annual profitability. A cash flow projection summarizes the amount of money available to make purchases and pay bills. Though these projections appear unrelated, the main difference is the timing of debt and principal payments and the purchase of capital expenditures and depreciation. Both projections provide monthly and annual checkups to determine that a company is following its plan toward financial success. When preparing budgets and projections, look at the most recent months of actual operations, because the near future is likely to resemble the recent past. Be flexible, because if revenue doesn’t equal expectations, the company may have to cut expenses. Since budgets and projections are estimates, be mentally prepared to miss projections. Be conservative; do not overstate revenue projections; and, be reasonable when projecting profit

margins, as the trick is to get close to the actual results. Check the budget each month to review cash flow needs and to keep expenses in line. You may have to reallocate some areas to keep the budget realistic. Use the budget as a restraint, but not a constraint, since it is impossible to foresee last minute opportunities. Benchmarking Industrial averages or benchmarking can be used to compare budgets and actual results to your industry. This will assist in determining the company’s strong business areas and which ones need to improve. Benchmarking will also assist in analyzing how well a business and industry as a whole is performing and provide an early warning to fluctuations. Malin Bergquist utilizes a proprietary Web-based financial analysis software suite that enables users to turn financial statements into plain language written reports. The reports use ratio and trend analyses as well as industry comparisons to analyze a business client’s financial health, and to determine which financial areas exceed industry averages and which ones need improvement. For more information, contact Craig Moffatt at cmoffatt@malinbergquist.com

CPA Craig C. Moffatt is a partner with Malin, Bergquist & Company, LLP, Erie’s largest certified public accounting firm, and serves closely held businesses and large tax exempt organizations.

March 2009 > www.mbausa.org > 9

Sunburst Electronics President and CEO John Cline (center), Vice President of Operations Steve Stamper (left), and Vice President of Sales & Marketing Kevin McDonough (right) are leading the efforts to broaden the company’s footprint in the electronics contract manufacturing industry. Behind them is one of Sunburst’s more dynamic assembly projects, a multi-axis motion simulator used for flight training.

Radiating Growth

Erie-based electronics contract manufacturer expands footprint with value-added services

Headquartered along the shores of Presque Isle Bay in Erie, Pennsylvania, Sunburst Electronics has entered a new dawn in the age of electronics contract manufacturing. The 150-employee, 31,000-square-foot operation, located at 420 East Bayfront Parkway, has set its sights on the horizon, as it strengthens its position in the regional market. Sunburst is doing this, explains President and CEO John W. Cline, through a formulated approach to growth — from investing in new equipment and enhancing its organizational development, to branching into new market segments with what Sunburst views as the most in-demand industry certifications required to meet stringent medical, aerospace and military standards. “We are a data-driven organization and believe that good decisions are made from good data,” explains Cline, an engineer by trade, “and at Sunburst, we have great data.” For more than two decades, Sunburst Electronics has been synonymous with high-tech manufacturing. The company has been a small, stable player in the competitive electronics industry that has seized the right opportunities at the right time to bolster its reputation and expand its customer base. Beginning in 2007, executives and the company’s board of directors initiated a major plan for growth that, they say, will fully demonstrate Sunburst’s capabilities and take the company to the next level of electronics contract manufacturing. Sunburst Electronics specializes in quality printed circuit board assembly, chassis, cable assembly and layout/design services.

“It was time to either accept the way the company was going or take a hard look at how we could become something different,” notes Cline. “That’s when we started the whole change — Sunburst reinvented.” To do this, executives mapped out a strategic vision that would enable the company to enhance its offerings and build upon them. Currently, they say, Sunburst is well-positioned to double its growth with the facility and equipment that it has today. “We’ve really transformed, or reinvented, Sunburst from being a transaction-based company,” explains Vice President of Operations Steve Stamper, CPIM, who oversees the company’s organizational and

10 < www.mbausa.org < March 2009

At Sunburst, “the scope of the product,” says Vice President of Sales & Marketing Kevin McDonough, “goes from the sublime to the ridiculous.” McDonough, a veteran of the electronics industry who joined Sunburst in late 2007 with more than 20 years of experience in Silicon Valley, best describes the company’s offerings as “a la carte.” One customer may need the company to assemble a printed circuit board, while the other may need Sunburst to build and ship the entire system. This capability is representative of the dramatic shift in the electronics equipment industry that is closing the gap between manufacturer and supplier.

Sunburst has invested heavily in new equipment to increase production capacity and its value proposition. Shown here are the company’s new automated Surface Mount placement systems from MyData.

employee development, “to an organization that provides a truly enhanced value proposition.” Which means? As a leading manufacturer of complex electronic assemblies, Sunburst has both the capacity and capability to service any top original equipment manufacturer (OEM) or value-added reseller (VAR). Its customers, which comprise three main market segments: medical electronics, industrial and aerospace, are located throughout the tri-state region of Pennsylvania and neighboring New York and Ohio, and rely on Sunburst for an array of offerings that include manufacturing, design and technical support as well as post-production services. At Sunburst, the company can assist in everything from product design, assembly and testing, to box build and complete product assemblies, on a consignment or turnkey basis. These projects run the gamut from inspecting solder joints not visible to the human eye to mounting sub-miniature electronic components onto printed circuit boards — and some even more mind-boggling.

For many years, OEMs were largely vertically integrated, doing everything — design and fabrication of parts and the assembly and testing of the final product — in-house. However, as the need to get these products to market faster and at a lower cost has increased, companies like Sunburst have filled the contract needs of these OEMs by providing what Sunburst defines as “virtual integration.” This rapid response business model provides customers with faster answers, service flexibility, and shorter cycle and lead times. In doing so, customers can reduce costs and focus on their own core competencies such as research and development, and marketing. “We are basically the entire manufacturing arm of a fully leveraged company,” notes Cline. “And for a company of our size, that is not a standard value proposition. Our value proposition is as big and as broad as a multinational Tier 1 contract manufacturer.”

Staying Ahead of the Curve

Sunburst has increased its value proposition by staying ahead of the technology curve and continuously utilizing leading-edge technological capabilities. The company recently added engineering floor space to accommodate its growth and has made a significant investment in capital equipment, including a fully automated Surface Mount Technology assembly line, allowing for higher throughput, higher feeder capacity, and higher accuracy on both high-mix and high-volume jobs. >

For example, it’s just as common to see Sunburst technicians assembling the electronic systems for a flow measurement system, as it is to find them working on the vent controls for surgery lighting systems. In fact, one of Sunburst’s more dynamic projects involves the electronics assembly of a multi-axis motion simulator, weighing 7,000 pounds with 1,500 point-to-point connectors, that is used specifically to train pilots for commercial aviation.

Sunburst Electronics is headquartered at 420 East Bayfront Parkway in Erie, Pennsylvania.

Sunburst Electronics About: Sunburst Electronics is a contract electronics manufacturer that specializes in developing electronic assemblies, such as printed circuit boards, chassis assembly, cables and harnesses. Primary markets include: aerospace/aeronautics, military, medical devices, process controls and instrumentation, industrial equipment, measurement systems and transportation. History: Originally founded by Robert Heiges in 1976, the company was purchased by Bliley Technologies, a manufacturer of crystals and crystal oscillators, in 1986. Operations: Sunburst occupies a 31,000-square-foot facility at 420 East Bayfront Parkway in Erie, Pennsylvania, and maintains a separately staffed, 4,000-squarefoot repair center specializing in end-of-life product management. Employees: 150 employees on two shifts. Industry standards and certifications: RoHS, ISO 9001: 2008, 13485:2003, IPC-A-600, IPC-A-610, IPC/WHMA-A-620, IPC 7710, IPC 7720, J-STD-001D, MIL1-45208, MIL-STD-105, DOD-STD-1686, MIL-STD-45662 and currently pursuing AS9100 aerospace certification. Honors: Named “Manufacturing Employer of the Year” by the Economic Development Corporation of Erie County in 2003. Multiple customer satisfaction awards. For more information: Visit www.sunburstelectronics.com, e-mail sales@sunb.com or call 814/461-9120. March 2009 > www.mbausa.org > 11

Recently, the company received its ISO 9001:2008 certification and ISO 13485:2003 Medical additive. The company is also IPC 610, 620, 7710 and 7720 certified to meet the requirements and acceptability of both electronic and cable and wire harness assemblies, and their repair; ITAR-registered so that it can manufacture qualified military products for export; and has UL certification for safety standards. In 2007, Sunburst fulfilled requirements to become a J-STD-001 facility — permitting the company to expand services to the military and other high reliability electronics markets, such as aerospace, medical equipment and telecommunications. Most recently, Sunburst has set its sights on adding the AS9100 aerospace certification to its list of industry-certified capabilities.

The company’s capabilities include prototype manufacturing, PC board and wire harness assembly, through box build.

This state-of-the-art equipment offers quick change-over and uses a vision-based camera system to inspect and center the components, increasing Sunburst’s surface mount placement capacity and improving quality levels. Notes Cline, “It gives us expanded capability for the next-generation electronic components and the capability to more effectively service markets that were challenged to service on the earlier generation equipment.” Throughout the facility, there are additional organizational changes under way that will have a direct impact on Sunburst’s value-added services. First and foremost are the best practices that are being implemented to reduce waste. The second is a much more dramatic shift in the company’s employee development and corporate culture, and how executives, managers, technicians and laborers approach their work — improving productivity and simplifying processes. “You have to transform companies and their culture to be able to achieve that goal,” Stamper says. “It’s all about developing and understanding how your work impacts other employees, and ultimately, the customer.”

Executives say these certifications are proof that the company is not just focused on one market segment, one customer element, or one technology. “There are people who are just board houses, or companies that just do the cables, or system assemblies,” explains Cline. “We’re unique in the fact, that with our continuously growing factory configuration, our well-developed operational philosophy, our certifications, and our experience base, we can effectively offer all of those services and much more — the full spectrum. That is a big competitive differentiator between us and many contract manufacturers in the marketplace.” And it’s this difference where Sunburst shines the brightest. “We offer a completely different value proposition,” adds Cline. “At the end of the day, we can only define it as value if the customer defines it as value, and so far they’ve been very receptive and supportive of the change that we’re moving toward.” For more information, visit the company’s Web site at www.sunburstelectronics.com. Sunburst is committed to continuously expanding its technologies to meet customer needs.

And, at Sunburst, it’s a culture shift that is being redefined companywide. It’s getting and keeping employees engaged that creates the environment, which, ultimately, is a high-performance culture that will be maintained as they grow. The formula is quite simple: The more flexible Sunburst is as an organization, the more value-added services they can provide. “Our customer base is a reflection of our flexibility within the organization,” notes Stamper. “We can assemble to order, engineer to order, perform repetitive manufacturing, and build to stock, so we offer multiple options for customers. A lot of contract manufacturers can’t offer that. They’re either repetitive or made to order, but we’re in all those areas, and it’s allowed us to have a more diversified customer base.”

An Expanded Footprint

Sunburst’s capacity and capability to expand its services is integrally tied to its certifications within the industry, and where it expects to broaden its market segment. At Sunburst, these certifications coupled with the company’s fervent customer service, innovative technical capabilities and highly trained work force are truly its calling card. “Our certifications don’t come as a result of our customers saying that we need to do this,” notes McDonough. “Instead, they come as a result of us doing an evaluation of the marketplace and saying, ‘If we had this, this is how we can grow.’ If it makes sense for Sunburst and our customers, we will then put the objective into motion and get it done.” 12 < www.mbausa.org < March 2009

Sunburst Electronics’ quality is assured by the numerous certifications that the company has obtained. Employees are trained in processes designed to meet the latest industry standards.

“It

was time to get serious about lean.” Brian Taylor, president Ellwood Crankshaft and Machine, Hermitage, Pa.

Brian Taylor had tinkered with lean manufacturing concepts—even applying some of its principles to his business here and there. But now he was ready to crank it up a notch. According to Taylor, “We felt it was time to get more scientific with lean.”

For more information about how the NWIRC can help you get lean, call us at one of our regional offices: Erie: Jack Watts or BJ Lechner (814) 456-6299 Meadville: Susan Hileman (814) 572-2077 Dubois: Gene Samanka (814) 590-1219 Mercer: Amy Weller (724) 699-5787

That’s where the NWIRC came in. “The NWIRC conducted the lean training we were looking for, but they also identified another opportunity for us. They introduced us to the concept of value stream mapping and conducted an analysis of one of our products. The lean efforts have increased productivity, improved quality and dramatically reduced cycle times.”

www.nwirc.org

HR Connection 90 PERCENT OF COMPANIES CUTTING COSTS, SURVEY SAYS Nine out of 10 companies have put costcutting strategies in place — from hiring freezes to furloughs — in hopes of weathering the recession, according to a survey by Chicago-based job placement consultancy Challenger Gray & Christmas Inc. Meanwhile, companies say that because of creative tactics to save money, they have been able to avoid making layoffs. Costcutting measures include salary freezes, cuts in workers’ hours, reductions in or the elimination of year-end bonuses, and cutbacks in various perks. The most often-used cost-cutting initiative was reducing travel expenses, cited by 67 percent of survey respondents. Hiring freezes and reductions, which are used by 58 percent of companies surveyed, followed.

MOST WORKERS COME TO WORK WHEN SICK Seventy-five percent of workers say that they very frequently or somewhat frequently go to work when they are feeling sick, according to a survey by the staffing firm OfficeTeam.

*NSURANCE 1OSTINGS FROM 1ATTY

COBRA compliance can be a headac he for employers. The Manufacturer & Business Ass ociation’s third-party billing partner could take the worry out of COBRA administration for employe r groups enrolled in any of the Association-sponsored health plans that have 20 or more employees. The fee structure may differ depending on which carr ier underwrites your coverage but the service is the same. Please call 800/207-9307 for a quote, or me at 814/833-3200 with any questions.

Forty-five percent of respondents said they very frequently go to work when they feel sick. Thirty percent of respondents said they do so somewhat frequently. Only 8 percent of workers say they never go to work when they are feeling sick, compared with 17 percent who said they somewhat infrequently come to work when feeling sick. The firm offers managers the following tips for ensuring staff do not come to work when ill: • Communicate expectations. Let staff

know that you prefer they stay home when they’re sick to ensure a quicker recovery. • Set an example. Employees are more likely to stay home when they’re sick if you do the same. • Give options. Allowing employees to work from home if they think they’re coming down with a cold or the flu can help them stay productive without spreading a potential illness to others.

Contractors & Construction Managers ~ Since 1906

14 < www.mbausa.org < March 2009

Patty Smith is the director of Emplo yee Benefit Services at the Manufactur er & Business Associa tion.

DEPARTMENTS > Contact: John Onorato

OSHA Proposes Two New Regulations In recent weeks The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has proposed new regulations in two areas. First, OSHA has revised fit tests for determining the effectiveness of respiratory protection facemasks. The proposed respiratory protection rule revises fit test procedures under OSHA’s Respiratory Protection Standard. In 1998, OSHA issued the revised OSHA Respiratory Protection Standard, 29 CFR 1910.134, which incorporated two categories of respirator fit tests. Some tests expose wearers to airborne agents to determine if they can detect them and other tests use a machine to measure how much of a test agent leaks into a respirator. The proposed revisions would allow certain machine-based fit tests to be conducted more quickly and increase the required score for passing them. Second, OSHA has proposed rules regarding occupational exposure to

diacetyl and food flavorings containing diacetyl. Diacetyl is often used as an artificial butter flavoring used in consumer goods such as margarine, microwave popcorn and some white wines. The National Institute for Occupational Safety and Health (NIOSH) has suggested that diacetyl, when used in artificial butter flavoring (as used in many consumer foods), may be hazardous when heated and inhaled over a long period. Workers in several factories that manufacture artificial butter flavoring have been diagnosed with a rare and serious non-curable disease of the lungs. Several authorities have called the disease “Popcorn Worker’s Lung.” A more accurate term suggested by other doctors may be more appropriate, since the disease can occur in any industry working with diacetyl: diacetyl-induced bronchiolitis obliterans.

providing a safe and healthy workplace for their employees. OSHA’s role is to promote the safety and health of America’s working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual process improvement in workplace safety and health. For more information, visit www.osha.gov or call the Association’s HR & Legal Services Division at 800/815-2660 or 814/833-3200. Attorney John Onorato is the vice president/general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.

Under the Occupational Safety and Health Act of 1970, employers are responsible for

March 2009 > www.mbausa.org > 15

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OntheHill

DEPARTMENTS > Contact: Sheila Sterrett

MBA Key Votes

Commencing with the 2009 legislative session, the Manufacturer & Business Association (MBA) will be tracking “key votes” of Pennsylvania legislators on both the state and federal level. A key manufacturing and business vote is determined by the MBA, reflecting the pro-growth, pro-business policies adopted by the MBA Board of Governors. Legislators are informed of the MBA Key Vote status on legislation in advance of a vote. Recognition will be given to those legislators who, at the close of the legislative session, have voted in support of the MBA’s position on key votes more than 80 percent of the time. Visit the Government Affairs Department online at www.mbausa.org to learn more.

Harrisburg Office Dedication Ceremony See photos on www.mbausa.org

Power in Numbers As the U.S. economy struggles to rebound in its current downturn, it is more crucial now than ever to contact those in the U.S. Congress and Pennsylvania General Assembly as they shape legislation that will affect your business not only during the duration of their term, but for years to come. The Manufacturer & Business Association is committed to encouraging businesses to unite, by voicing their thoughts and opinions with legislators in order to shape a pro-growth, pro-business public policy environment.

Online Advocacy In today’s technology driven society, online advocacy programs have become the “real time” method by which to contact legislators regarding issues that matter most to you. The MBA utilizes Capwiz™, giving users an opportunity to be “in the know” regarding: • Contact information on the federal level that includes the president, senators and representatives • Pennsylvania State Legislative Directory, including the governor, state senators and state representatives • State departments and agencies

• Local government • Action alerts • MBA key bills and votes • Federal and state communication tips

Capwiz How-To Through Capwiz™, constituents are able to get in touch with legislators in three easy steps. First, log on to: http://www.mbausa. org/government-affairs-news/archives/takeaction. Next, enter your zip code to obtain legislator information pertinent to your location. From there, you can view a list of MBA action alerts, responding to those that mean the most to you. For ease of use, contact information only needs to be entered once, as Capwiz™ will remember these fields for future visits. By pulling from suggested quotes, using a provided form letter or composing your own letter to send to legislators, your voice will be heard. Communications can be sent via e-mail, or printed on personal/company letterhead and then faxed, mailed or sent through hand-delivery to the legislator. All messages e-mailed through the Capwiz™ program are sent directly to the legislator(s) you are attempting to influence. Personalizing your message makes your communication unique

to you and your legislative concerns, encouraging legislators to take notice of their constituent’s support or opposition of an issue. While each individual has the option to choose how active they are, the MBA encourages contacting legislators on both a state and federal level as frequently as possible. By doing so, you become an engaged participant in the legislative process, in turn shaping a pro-growth, pro-business environment for the future.

Are You Interested in Becoming an Activist? To become an active participant in the MBA’s legislative undertakings, we encourage you to join the MBA Frontliners. As a member of this group, you will be on the cutting edge as legislation arises on both the state and federal level. We will count on you to take advantage of our online advocacy program, as well as traditional methods of advocacy such as fax and telephone, to contact your legislators in either support or opposition to legislation. To register as a member of the MBA Frontliners, please e-mail Sheila Sterrett, director of Government Affairs, at ssterrett@mbausa.org. March 2009 > www.mbausa.org > 17

Legal Q&A WE RECENTLY LEARNED THAT A MANAGER STRONGLY “SUGGESTED” THAT HIS HOURLY, NON-EXEMPT EMPLOYEES NOT PUT IN FOR OVERTIME THAT THEY WORKED. THIS HAS GONE ON FOR ALMOST 18 MONTHS. NEEDLESS TO SAY, THE MANAGER HAS HIT THE ROAD, BUT WHAT SHOULD WE DO?

I, however, would recommend that you pay the employees what you owe them. That probably would be good for morale (especially if you pay the full 18 months — more than legally required). That way, you can get them to sign off on the payment. While it is not a release, it will probably make the employees put this issue to bed.

Your former manager has put you in a difficult position. The good news is that your employees won’t be able to make a claim for back wages that are over a year old. But that still leaves you with the previous 12 months. Unfortunately, if you were to get a release from your employees, it wouldn’t be enforceable.

I’M HARD-PRESSED TO FIND ENOUGH QUALIFIED EMPLOYEES TO FILL ALL OF MY OPEN POSITIONS. WE’VE NEVER DONE MUCH IN THE WAY OF SCREENING OR BACKGROUND CHECKS. DO WE HAVE TO?

Employees cannot waive claims they might have for wages. And the U.S. Department of Labor, Wage and Hour Division, (DOL) could still file a claim against you — even if you pay the wages. So you have a few options.

Do you have to? Probably not. Certain types of employers (such as law enforcement agencies) are subject to special rules for screening applicants. Also, if you “bond” employees or carry any type of employment practices liability insurance, your underwriter may require certain types

of screening on covered workers. By and large, though, most employers are not required legally to perform any particular kind of applicant screening. You are not required to check references, conduct drug tests, or look into an employee’s credit history or criminal background. But just because you don’t have to conduct the screening doesn’t mean it isn’t a good practice.

ISN’T THE EASIEST THING JUST TO HIRE SOMEONE TO SCREEN APPLICANTS FOR US?

Using a third party to conduct background checks is often the most cost-effective solution to applicant screening. In addition, often times you will get a more comprehensive result. The Manufacturer & Business Association offers a full range of background checks and has access to multi-state sources and databases that individual employees oftentimes do not.

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18 < www.mbausa.org < March 2009

DEPARTMENTS > Contact: John Onorato

Protect Your Confidential Data Restrictive covenants can be useful to protect trade secrets (which are defined by Pennsylvania’s Uniform Trade Secrets Act), or other confidential business information that may not qualify as a trade secret.

Pennsylvania law determines whether to enforce restrictive covenants based upon a number of factors, all related to the employer’s legitimate business interests. The chief factors include whether:

The law looks at whether the business information really is confidential. Is the information publicly available, and easy to figure out? Or is it known only to your business because you have developed it yourself at significant cost? What efforts are made to keep the information confidential? These are questions that a court will want answered.

• There was reasonable consideration given for the agreement (this is particularly important where employees are required to sign such contracts after they have been hired);

There are a number of kinds of restrictive covenants. In addition to non-competition agreements, there are non-solicitation and anti-raiding agreements. A non-solicitation agreement requires someone not to solicit your customers (or suppliers), while an anti-raiding agreement requires someone not to steal your employees.

• The restrictions are reasonable in light of all the circumstances; • The restrictions are reasonably limited in time and geography; and • Enforcing the restriction will harm the public interest.

Restrictive covenants can be useful in protecting your business’s confidential data. Depending upon the nature of your business, they may be essential. For more information on these issues, contact me at 814/833-3200, 800/815-2660, or ddieteman@ mbausa.org. David Dieteman is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division. He assists member companies with their legal needs, including hotline calls, contract drafting and negotiation, employee handbook review and drafting, and selective litigation.

An employee handbook should also contain a provision discussing the confidential nature of your business, so as to fit with any restrictive covenants that you might decide upon.

March 2009 > www.mbausa.org > 19

Events

ACES’ 50th Outstanding Citizen Award

In honor of his practice and promotion of free enterprise in both his professional and personal life, the Americans for the Competitive Enterprise System (ACES) recently presented Hamot Health Foundation President and CEO John Malone with its Bob & Betty Merwin Outstanding Citizen Award, during a private reception on February 4, 2009, at the Manufacturer & Business Association Conference Center. The recognition ceremony, which was attended by approximately 80 guests of the business and educational communities and past award recipients, was co-sponsored by ACES and the Business Magazine. For complete photo coverage, see www.mbausa.org.

Laurana and Henry Fish congratulate honoree John Malone, along with Nick Scott and Karen Malone.

This year’s ceremony marked the 50th year that ACES has presented the Outstanding Citizen Award to a member of the business community.

Guests included business and educational leaders who support ACES and its programs.

Manufacturer & Business Association Vice Chairman Mark Kulyk and Board Member Sue Sutto greet Jeffrey Beach of Malin Bergquist & Company, LLP. 20 < www.mbausa.org < March 2009

The Business Magazine co-sponsored the reception, dedicating the February 2009 cover story to ACES’ Pennsylvania Business Week program. The digital edition of that article is available online on www.mbausa.org.

ACES Board members Jeremy Lincoln, John Krahe, Jim Ohrn, Executive Director Val Laufenberg, Carl Wolfrom and Boo Hagerty celebrate with Hamot Health Foundation CEO and Outstanding Citizen Award recipient, John Malone.

EVENTS > Contact: Karen Torres

Past Outstanding Citizen Award recipients Ed Mead; Ray McGarvey; Chuck Jenkins; Henry Fish; Tim Shuttleworth, on behalf of the Associationâ&#x20AC;&#x2122;s Board of Governors; and Nick Scott also were recognized, along with John Malone (back row, center).

Boo Hagerty and Val Laufenberg present this yearâ&#x20AC;&#x2122;s award to John Malone.

In his acceptance speech, Malone thanked his colleagues at Hamot, both past and present.

Ray McGarvey, who was honored with the Outstanding Citizen Award in 1977, talks with Attorney Mark Wassell of Knox McLaughlin Gornall & Sennett, P.C.

Chuck Jenkins, Louanne Griffith and Boo Hagerty mingle at the reception.

Sandra and Clarence Kearney enjoy the evening with James Fiorenzo.

Noreen Griffith talks with Kathy and Stephen Danch.

Also in attendance were Tina and Martin Rimpa with Dean Swanson. March 2009 > www.mbausa.org > 21

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Tech News

EDITORIAL > by Ned Reade

Virtualization: Is it Right for Your Business? The technology world is full of promises; a lot of these promises have great potential but never reach the consumer. Many of these technologies never even get the traction to have an effect, or they are superseded with another technology before they reach industry. And then, every so often, once in a decade, a technological development makes a radical impact on how we do business and provides “true” business benefits. Virtualization is one such cost-effective and moneysaving technology. Server and workstation virtualization can significantly improve your business-computing environment and provide better stability to your operations. It also can save your staff time. If you are not sure if virtualization is right for your business, consider if any of these situations exist within your business environment: 1. You’re only two years into the life of your “new” servers, and you find out that they are bogged down and under-sized with the growth in number of business applications you’ve placed on them. 2. You are experiencing “server sprawl,” and have no more rack space in your data center, driving power consumption and airconditioning costs up. 3. You have a critical legacy application running on an old server platform that is beginning to fail, and you don’t know how to avoid the inevitable failure of that hardware on which your entire business process depends. 4. You’ve had a few “hiccups” in your network lately, decided to implement a Business Continuity Plan with Disaster Recovery, but don’t have the resources to duplicate your data center. 5. The budget for information

technology (IT) expenditures needs to be reduced to comply with business spending reductions. At the same time, the demands on your business require that new applications and processes be implemented to keep your business competitive. 6. You’d like to have additional servers to run tests for patches, upgrades and new software, but adding multiple servers for test purposes is not cost effective for your business. 7. Your company is running three shifts, and cannot have any downtime, but you want to be assured that your investment in technology is properly updated and maintained. 8. Engineering needs to “borrow” a server for a few days to test a product they are developing or to test a new application. Does any of this sound familiar? They are situations facing business of all types every day. If even one of these scenarios strikes a nerve, then you are a candidate for virtualization. All of these issues have the potential to be impacted by virtualization. Virtualization, in a nutshell, is the ability to run multiple operating systems on a single physical platform, while sharing the hardware resources. But virtualization is not new. IBM pioneered this technology in the 1970s on their mainframes. Only within the last 10 years has virtualization been able to filter down from the enterprise environment to the small- and medium-sized business world due to the rapid growth of “x86-based” hardware. The Benefits are Huge Not only is a virtualized implementation hardware independent, but also virtual machines can be moved or copied to any well-equipped industry-

standard x86 machine. The ability to run multiple operating systems and independent network servers on a single piece of hardware is a bold move toward a “green” server environment. Virtualization provides better server utilization, up to 10 times a typical server deployment, thus reducing power consumption. In our network environments, data must be reliable and available. Virtualization addresses these requirements in one solution — reliable because systems resources can be allocated “as needed” on the fly, and available because data can be replicated across the network through Network Storage and Storage Area Network (SAN) configurations. High Availability is now possible for smaller companies without large capital expenditures. If you’ve been considering virtualization, but weren’t sure where to begin, consider one of the “free” versions available from VMWare, Microsoft or Citrix. For more information on virtualization and how it can benefit your company, contact Networking Technologies at 814/836-0000 or e-mail info@net-cloud.com.

Chief Operating Officer and Marketing Director Ned Reade is responsible for strategic positioning for Networking Technologies. As a technical sales professional with more than 30 years experience and a Microsoft Certified Systems Engineer, Reade has positioned Networking Technologies to be a leader in network consulting.

March 2009 > www.mbausa.org > 23

People Buzz ASSOCIATION HR STAFF EARNS PHR CERTIFICATION The Manufacturer & Business Association recently announced that Attorney Tammy M. Lamary and HR Generalist Rose Bruno have earned their Professional in Human Resources (PHR) certification through the Human Resource Certification Institute (HRCI). The PHR exam tests professionals on both an operational and technical level. Subjects include strategic management, work-force planning and employment, HR development, compensation and benefits, employee and labor relations, as well as occupational health, safety and security. As Labor & Employment Counsel for the Association’s HR & Legal Services

24 < www.mbausa.org < March 2009

Division, Attorney Lamary assists member companies with their legal needs, including hotline calls, contract drafting and negotiation, employee handbook review and drafting, and selective litigation. She also serves as a lecturer for the Association’s legal briefings and Supervisory Skills training classes. As an HR generalist, Bruno is responsible for ensuring companies are in compliance with employment laws and regulations. LAKE ERIE BIOFUELS HIRES VP OF SALES Lake Erie Biofuels, LLC has hired Tim Keaveney as vice president of Sales. According to the company, Keaveney, who is the current standing commissioner of the National Biodiesel Board BQ-9000 Commissioners Committee, will be leading the development of the company’s domestic and international markets for biodiesel. As an 18-year sales and marketing veteran

EDITORIAL > Contact: Karen Torres

from the transportation and heating fuels sector, Keaveney will help link the company’s 45 million gallon multifeedstock biodiesel plant with traditional fuel oil market segments. Lake Erie Biofuels, LLC, located in Erie, was founded in 2007 and is Pennsylvania’s first largescale biodiesel production facility. iPCS WIRELESS APPOINTS NEW DISTRICT SALES MANAGER iPCS Wireless Inc., an affiliate of Sprint PCS, has announced that Fred Amendola has joined the company as district sales manager. Amendola previously had been employed by Cellular One for more than 15 years in various positions, most recently serving as director of Business Sales. In his new role at iPCS Wireless, he will be responsible for all channels of distribution for Sprint in the Western Pennsylvania/New York as well as Northeast Ohio areas.

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Stop by any branch. Visit pnc.com/cfo. Or call 1-877-BUS-BNKG.

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Erie Office: Village West #13 3330 West 26th Street 814-833-6633 This managed care plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. If you have questions, call Member Services at 1-888-876-2756.

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199