March 2020 Business Magazine by MBA Business Magazine

Ma r c h2 0 2 0

May 2020 “Made in PA” Advertising Offer

11th Annual Special Edition The ever popular “Made in PA” issue of the Business Magazine is specifically designed to promote manufacturing in our region — and we want you to be a part of this extraordinary issue! BUSINESS BUZZ | WHAT’S NEW

WABTEC CELEBRATES 150 YEARS OF REDEFINING TRANSPORTATION INDUSTRY

MBA HR CONFERENCE

Wabtec Corporation (NYSE: WAB), a high-tech supplier for the freight and transit rail industries, celebrated 150 years of innovation and the grand opening of its new headquarters in Pittsburgh this past fall.

The American Society of Mechanical Engineers (ASME) recognized the significance of Westinghouse’s air Attorneys at Knox McLaughlin Gornall & brake to society with a Historic Mechanical Engineering Sennett, P.C. understand the unique Landmark designation. The Westinghouse air brake challenges faced by manufacturers. Fromjoins an exclusive collection of 273 artifacts from small proprietorships to large corporations around the world that have been designated historic and from sintered metals to pet nutrition, mechanical engineering landmarks, heritage collections we have worked with all types of businesses or heritage sites. The ASME History and Heritage and in many industries. We can provide Committee selects these artifacts based on their the legal tools essential to your success. engineering attributes, role in the evolution of the Rely on Knox Law to find innovative mechanical engineering profession, and significance to solutions to your problems and add value society in general. to your business. As part of its 150th-anniversary celebration, Wabtec also celebrated its new, state-of-the-art offices in the heart of Pittsburgh’s North Shore community. The office will house roughly 250 employees and play a critical role in accelerating the future of transportation.

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Central & Northern PA

Helping to Get It

Made in PA

Flexcut Carving Tools was founded in Erie 30+ years ago. Today, we manufacture over 300 unique, high-quality woodcarving tools used by professional carvers and hobbyists around the world. Recently, we entered a new market with the launch of our Hawthorne Knife Collection. The collection features rugged bushcraft field knives for outdoor sport, work and adventure. Over the years we’ve stayed committed to providing our customers with excellent customer service and continuous product improvement. We believe in investing in our employees as well as state-of-the-art manufacturing equipment and processes to help give us a more competitive edge and to carve out a brighter future. We are the largest woodcarving tool and knife manufacturer in America and very proud of our team and the superior quality of our made-in-Erie, made-in-the-USA products!

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MAY 2017 • mbabizmag.com

TM Filtration

In the guide, ERIE was recognized for its competitive pricing, A+ financial strength rating from A.M. Best and policy features such as personal property coverage, loss-of-use coverage, personal liability and guest medical coverage.

Business Card Ad U.S. News evaluated renters insurance companies in 2019 based on what is important to consumers, including cost and coverage limits features.

U.S. News’ 360 Reviews guide features in-depth information for consumers on choosing a renters insurance company and covers a range of topics, from the amount of insurance consumers might need to available discounts and coverage options.

For more information, visit www.erieinsurance.com.

2020 2020 2020

Early Connections, formerly the YWCA of Erie, proudly continues our leadership, advocacy, and quality programs in early care and education. mission of Connections, supporting the successthe of young and their families our through Early formerly YWCA children of Erie, proudly continues leadership, advocacy, quality programs in early education. mission of supporting theand success of young children andcare theirand families through leadership, advocacy, and quality programs in early care and education.

1432 Walnut Street Erie, PA 16502 www.fluideng.com * www.tmfiltration.com

Erie Insurance has been recognized as a Best Renters Insurance Company of 2019 by U.S. News & World Report.

 6 locations in Erie County Providing Quality Early Care & Education Programs: Providing Early Care & Education Programs:  Ages 6Quality weeks - 12County years 6 locations in Erie Pre-K 6 locations in Erie  Ages 6Counts weeks - 12County years DHS  Ages 6Counts weeks - 12 years Pre-Klicensed Keystone STARS  Pre-K Counts DHS licensed Infant/Toddler Contracted Slots  DHS licensed Keystone STARS Summer Programs  Keystone STARS Infant/Toddler Contracted Slots  Infant/Toddler Contracted Slots Summer Programs 814-874-0144  Summer Programs www.earlyconnectionserie.org facebook.com/earlyconnectionsinc 814-874-0144 www.earlyconnectionserie.org 814-874-0144 www.earlyconnectionserie.org facebook.com/earlyconnectionsinc Early Connections, formerly the YWCA of Erie, proudly continues our facebook.com/earlyconnectionsinc mission of supporting the success of young children and their families through

Scotch Yoke Mechanical Forge Presses to 12,000 tons

8105 Hawthorne Drive, Erie, PA

MAY 2019 • mbabizmag.com

125 YEARS 125 YEARS 125 YEARS

Wabtec recently celebrated its 150th anniversary and opening of its new headquarters in Pittsburgh this past fall.

ERIE INSURANCE RANKED AMONG BEST RENTERS INSURANCE COMPANIES

Creating li felong learners, one child at a time Creating li felong learners, one child at a time Early C rProviding e a t i n g lQuality i felong l e aCare r n e r&s ,Education o n e c h i lPrograms: d at a time

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Flexcut.com

1895 1895 1895

ERIE... Designing, building & integrating mechanical & hydraulic presses around the world

Carving Out A Bright Future!

Technology PArtners

For more information, visit www.WabtecCorp.com.

Photo courtesy of Wabtec

The company’s origins began in Western Pennsylvania with founder George Westinghouse Jr.’s invention of the automatic air brake — a breakthrough that redefined the transportation industry and saved lives.

ESSENTIAL TOOLS

$210

Automated concepts & tooling (814) 796-6302 www.acat.us.com

HI SPEED SMALL PART ASSEMBLY MACHINES, ROBOTICS, PRECISION MACHINING AND PRODUCTION MACHINING

JANUARY 2020 • mbabizmag.com

Ad Space Reservation Due: TUESDAY, MARCH 31 Ad Materials Due: THURSDAY, APRIL 9

5240 Knowledge Parkway, Erie PA 16510 • 814-898-6650 • www.cnp.benfranklin.org

$1,300

Company Profile Includes: 600 words of copy, photos, contact information and company logo.

Roberts Companies Headquarters: 5501 Route 89 North East, PA 16428 Phone: 814/347-1300 or 1-800-955-4087

Rise With Roberts History Founded in 1978, the Roberts Companies were built on a foundation of asset-based local, regional and over the road (OTR) units capable of running the lower 48 states and eastern Canada with a compliment of warehouse/distribution/ cross dock space in Western PA and Western NY. Roberts has a vast pool of resources and professionally trained staff to provide customers with full Supply Chain Solutions. Roberts provides consistent on-time service to clients through sophisticated management systems, strong client relations and a commitment to excellence. Office locations are in Erie and Pittsburgh, Pennsylvania, Harford, Connecticut and Charlotte, North Carolina to support its business across the globe. Capabilities Warehousing | Roberts offers uniquely customizable solutions for clients that have temperature sensitive products, strict deadlines and large or small shipments, both globally and nationwide. Roberts currently has a multitude of meticulously maintained, pest-controlled and heated space facilities for food grade products in Erie County, Pennsylvania. All facilities including New York locations, conveniently located off Interstate 90, are equipped with a bar code data collection system providing directed pick and pack location assignment, real-time inventory capability and a first in-first out (FIFO) management system.

www.robertstrucking.com www.rise-logistics.com Kirk Hill is the president and chief executive officer of Roberts Companies.

Print Media | To meet the need for a critical service in the direct mailing business, Roberts offers print media and direct mailing services for newspapers, retail circulars and mailers. With advertisements and information sharing through different channels, such as social media and online engagement nowadays, Roberts presents an economical process to control cost and coordinate freight for the printing industry.

CO M PAN Y PR O FIL E

#Rising Up Next… It’s a new and exciting time at the Roberts Companies! “We are drafting dreams and casting a wider net with new leadership, new services and new culture and our priority is to improve on all levels so that we may better serve

clients and the community,” says President and CEO Kirk Hill. “To build upon our reputable foundation, we are strengthening our workforce and expanding our businesses. We are proud to introduce Rise Logistics as our sister company! We will now offer the same premier services and greater resources in six locations handling all facets of supply chain logistics globally. Our Erie office and headquarters in North East, Pennsylvania deliver services locally and look forward to continuing to do so as Roberts Companies and Rise Logistics.”

INDUSTRIAL SALES & MANUFACTURING

AERO TECH DESIGNS CYCLEWEAR

1132 4th Avenue Coraopolis, PA 15108 Website: www.aerotechdesigns.com Phone: 800-621-4836 Women-owned bicycle clothing manufacturing company specializing in big, tall, plus, children and regular adult cycling apparel. The company has a full custom sublimation printing capacity for club and team uniforms. Products are made in the USA.

552 West 12th Street PO Box 1599 Erie, PA 16512 Phone: 814/456-7053 Website: www.galvanizeit.com A NADCAP certified Metal Finishing company, ATG has specialized in putting the “PRO” in Corrosion PROtection for over 85 years. Anodizing, Electroplating or Galvanizing: ATG’s got you covered!!

Profile Space Reservation Due: FRIDAY, MARCH 27

Trucking | With a focus on capacity and reliability, Roberts manages a fleet size of approximately 400 trucks within its company and carrier partner networks. As a brokerage firm with strong relationships with its clients, as well as its carrier partners, Roberts relies upon dependability and stability to solidify shipper carrier partnerships. Logistics | Roberts logistics solutions allows customers to reduce, measure and control transportation expenditures. The company works to maintain costs while providing customized invoicing, auditing and dedicated services to support customer business activities.

$1,400

Pennsylvania’s manufacturing industry comprises more than 14,500 establishments and more than 560,000 employees that represent both traditional and additive manufacturing. Along with national and international companies, small and medium size businesses have a significant presence here, and help continue the state’s manufacturing heritage. Here are just a few of those companies that are proud to manufacture in the Keystone State:

AMERICAN TINNING & GALVANIZING

Rise with Roberts, here and beyond!

mbabizmag.com • OCTOBER 2018

PLUS: For ONLY $200, be a part of our 2020 Showcase Listing of Manufacturers!

AMERICAN TURNED PRODUCTS

7626 Klier Drive Fairview, PA 16415 Phone: 814/474-4200 Website: www.atpteam.com Specializes in contract precision machining of highvolume complex parts for the automotive industry.

CUSTOM ENGINEERING COMPANY

2800 McClelland Avenue Erie, PA 16510 Phone: 814/898-2800 Website: www.customeng.com Custom is a leading supplier of heavy fabrication, machining and assembly of large weldments to a wide variety of world-class companies.

Profile Materials Due: THURSDAY, APRIL 2

ERICSON MEMORIAL STUDIOS

3802 West Ridge Road Erie, PA 16506 Phone: 814/833-7816 Website: www.ericsonmemorials.com At Ericson, every life is worth remembering. In addition to personalized memorials, Ericson creates custom signage for corporate offices and municipal buildings; landmark monuments and park memorials; and etched landscape boulders for residential and commercial landscape projects.

MAY 2020

• mbabizmag.com

ERIE PRESS SYSTEMS

1253 West 12th Street, PO Box 4061 Erie, PA 16512 Phone: 814/455-3941 Website: www.eriepress.com Manufactures custom hydraulic and mechanical presses for forging, extrusion, stretch forming, compaction and metal forming.

ERIE STRAYER COMPANY

1851 Rudolph Avenue Erie, PA 16502 Phone: 814/456-7001 Website: www.eriestrayer.com Erie Strayer Company, family owned since 1912, is a fourthgeneration industry leader in the designing, engineering and manufacturing of concrete batch plants. From custom ready-mix plants to highly mobile paving plants, ERIE’s rugged quality and timely after-sale support helps to ensure repeat business. ERIE also manufactures its own Heavy-Duty Tilt Drum Mixer, Liberty Batching Control System and stateof-the art PLC-Based Automatic Material Handling Controls.

GREAT LAKES CASE & CABINET

4193 Route 6N Edinboro, PA 16412 Phone: 814/734-7303 Website: www.GreatCabinets.com Manufacturer of UL Listed enclosures for industrial control panels and IT equipment; available in multiple NEMA ratings for harsh indoor and outdoor environments.

HARMONY CASTINGS

251 Perry Highway Harmony, PA 16307 Phone: 724/452-5811 Website: www.harmonycastings.com Harmony Castings is a one-stop shop for high quality aluminum castings, providing prototype through high-volume products for various industries. Harmony Castings is ISO 9001, AS9100 & ITAR Compliant.

HOWARD INDUSTRIES

6400 Howard Drive Fairview, PA 16415 Phone: 800-458-0591 Website: www.howardindustries.com Nationally known, locally owned, Howard Industries is a leading manufacturer of both interior and exterior architectural signage systems. They offer patented, modular, and built-to-order products that are 100% made in the USA.

REHRIG PACIFIC COMPANY

2609 West 12th Street Erie, PA 16505 Phone: 814/833-9876 Website: www.ismerie.com Quality contract machining, fabrication and assembly for OEMS since 1967.

Address: 1738 West 20th Street Erie, PA 16502 Phone: 814/455-8023 Website: rehrigpacific.com Manufactures recycle bins, milk crates and dairy crates, to name a few.

LORD CORPORATION

2455 Robison Road West Erie, PA 16509 Phone: 814/868-3180 Website: www.lord.com LORD Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance. For more than 90 years, LORD has worked in collaboration with our customers to provide innovative aerospace, defense, automotive and industrial solutions.

MICRO MOLD CO., INC.

4820 Pittsburgh Avenue Erie, PA 16509 Phone: 814/838-3404 Website: www.plastikoserie.com Provides custom mold design & fabrication services along with plastics engineering support services to the medical device and electronics industries.

PHB INCORPORATED

7900 West Ridge Road Fairview, PA 16415 Phone: 814/474-5511 Website: www.phbcorp.com Manufacturing capabilities include zinc die casting, aluminum die casting, machining, plastic and rubber molding, tool & die, injection molding, and product assembly.

PLASTIKOS, INC.

8165 Hawthorne Drive Erie, PA 16509 Phone: 814/868-1656 Website: www.plastikoserie.com Provides custom mold design and fabrication services along with plastics engineering support services to the medical device and electronics industries.

REDDOG INDUSTRIES, INC.

2012 East 33rd Street Erie, PA 16510 Phone: 814/898-4321 Website: www.reddog-erie.com Manufacturing capabilities include high-pressure plastic injection molds; aluminum die-cast dies; and specialized machining.

RIDG-U-RAK, INC.

120 South Lake Street North East, PA 16428 Phone: 814/725-8751 Website: www.ridgurak.com Designs and manufactures a full array of storage rack solutions.

SMITH PROVISION COMPANY, INC.

1300 Cranberry Street Erie, PA 16501 Phone: 814/459-4974 Website: www.smithhotdogs.com Manufacturer of premium quality wieners, sausages, deli meats, bacon and award-winning hams.

URBAN ENGINEERS

1319 Sassafras Street Erie, PA 16501 Phone: 814/453-5702 Website: www.urbanengineers.com A multidisciplinary planning, design, environmental and construction support services consulting firm with 15 locations across the United States.

THE WARREN COMPANY

2201 Loveland Avenue Erie, PA 16505 Phone: 814/838-8681 Website: www.thewarrencompany.com “We put the ‘service’ in Service Center” A leader in materials supply and custom fabrication. Providing value added services of laser cutting, plasma cutting, torch cutting, rolling, shearing, forming, fabrication and blanchard grinding.

X-CELL TOOL AND MOLD, INC.

7701 Klier Drive Fairview, PA 16415 Phone: 814/474-9100 Website: www.xctam.com X-Cell Tool has been designing and building high precision SPI/SPE Class 101 Injection molds since 1996. X-Cell customers range from medical device OEMs to international consumer products manufacturers, and also includes domestic automotive and industrial electronic device manufacturers.

mbabizmag.com • MAY 2020

FOR MORE INFORMATION: David Thornburg • dthornburg@mbausa.org Frank Mehler • fmehler@mbausa.org 814/833-3200 • 800/815-2660

VOL. XXXIII NO. 3 | MARCH 2020

SPOTLIGHT:

PNC EXEC SHARES TIPS ON BUSINESS TRANSITION PLANNING

MBA ENERGY PROGRAM OFFERS PREDICTABILITY, BUDGET STABILITY AND PEACE OF MIND FOR MEMBERS

SPECIAL SECTION:

VIEW THE MBAâ&#x20AC;&#x2122;S LATEST TRAINING CATALOG

DAYLIGHT SAVINGS REMINDER

Spring Forward One Hour Sunday, March 8 @ 2 a.m.

Provided courtesy of:

EnergyAdvisors Visit www.mbausa.org to download a 8.5” x 11” color PDF.

FEATURES FEATURE STORY | WHAT’S INSIDE

Saving to Transform A new view of how cost management can add to business success.

COVER STORY | LOCAL PROFILE

5 EnergyAdvisors

Members share how the MBA’s energy program offers predictability, budget stability for their energy needs, as well as peace of mind, trust, accessibility and reliability.

SUCCESSION

SPOTLIGHT Q&A | PLANNING

DEPARTMENTS

BUSINESS BUZZ WHAT’S NEW

PEOPLE BUZZ

HR CONNECTION

LEGAL Q&A

SPECIAL SECTION & EXTRAS 21 EVENTS NETWORKING AND MORE

EDITORIAL

See photo coverage of the Association’s recent networking events.

AWARDS AND PROMOTIONS

WORKPLACE TRENDS

GET ANSWERS

Gene Crescente, senior vice president at PNC Wealth Management, answers some key questions about why it is important to have a clearly defined business transition and/or sale strategy in place.

LEGAL BRIEF | AGREEMENTS

What is a bulk sale and why should employers care? Jay Alberstadt

ON THE HILL |

READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com

EDUCATION & WORKFORCE DEVELOPMENT

Why America must ready learners for the demands of the 21st century workforce with skills-based education. Congressman Glenn “GT” Thompson

INSERT | TRAINING CATALOG Executive Editor Karen Torres ktorres@mbausa.org Contributing Writers Jay Alberstadt Congressman Glenn “GT” Thompson

Feature Photography istockPhoto.com Addtional Photography Casey Naylon Alexander Newcamp iStockPhoto.com Design, Production & Printing Printing Concepts Inc. printcon@erie.net

Advertising Sales Frank Mehler 814/833-3200 fmehler@mbausa.org

See the upcoming computer, professional development and HR courses available at the Manufacturer & Business Association.

David Thornburg 814/833-3200 dthornburg@mbausa.org

On the Cover: For participating member companies across Pennsylvania, including the Penelec, PPL, West Penn, Penn Power, PECO, MetED and Duquesne Light utility areas, the MBA’s EnergyAdvisors program provides predictability and budget stability for all of their energy needs — no matter their size or energy usage. See page 5. Mission Statement: The Manufacturer & Business

Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

© Copyright 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.

mbabizmag.com • MARCH 2020

LET’S TALK If you are seeking legal services, we should have a conversation about: • How we strive to achieve each client’s objectives • How we invest in our people • How we are thought leaders • How our firm has grown to a staff of more than 90 • How we’ve been recognized nationally • How we serve our communities • How we have worldwide capacity Let’s talk. Call us at 814-459-2800. Or visit kmgslaw.com/LetsTalk to learn more.

Knox McLaughlin Gornall & Sennett, P.C. Erie

North East | Pittsburgh | Jamestown, NY 814-459-2800 | www.kmgslaw.com

Saving to Transform

FEATURE STORY | WHAT’S INSIDE

A NEW VIEW OF HOW COST MANAGEMENT CAN ADD TO BUSINESS SUCCESS Cost management is critical to the business world — with companies setting expectations for revenue growth, while reducing costs to allow for it. However, research has found that in today’s global economy, businesses also recognize the need to transform their operations and capabilities — shifting from a save-to-grow to a save-to-transform mindset.

According to recent research by Deloitte, one of the world’s largest consulting firms, “businesses are recognizing the need to transform their operations and capabilities with infrastructure investments in key digital innovations such as robotic process automation, cognitive technologies, business intelligence and cloud-based ERP systems. These digital technologies and innovations can deliver dramatic improvements in competitiveness, performance, operating efficiency and, increasingly, cost savings.” Based on Deloitte’s 2019 Global Cost Survey of more than 1,200 senior executives across all major global regions and industries, cost reduction remains a global imperative. However, what once was viewed as a “saveto-grow” mentality with cost management is now emerging as a “save-to-transform.” What does that mean? According to Deloitte’s findings, the “saveto-transform playbook” includes investment in digital technologies and innovations that can improve every aspect of a business, from business and operating models to

market reach, service quality, operating efficiency, use of talent and the overall customer experience. Such improvements can make companies more resistant to digital disruption and economic downturns by providing “a stronger foundation for defense-oriented cost management activities — activities that are sure to be needed at some point in the future.” In this edition of the Business Magazine, we’ll take a closer look at this “save to transform” mentality and the solutions that make sense to helping employers achieve their long-term goals. For instance, we’ll talk to members who are utilizing the MBA’s EnergyAdvisors energy program to help save on their electricity costs and how that contributes to their organization’s operations and their bottom line.

important for employers to have a clearly defined strategy in place when it comes to their business transition and/or sale plan. In addition, be sure to check out our expert articles on Lean Six Sigma and why “It takes money to save money,” as well as our detailed look at paid time off (PTO) banks and how they can benefit your organization and your employees. As always, the Manufacturer & Business Association is dedicated to helping employers face challenges by delivering services that lower the cost of doing business, ease the burden of compliance and increase productivity. To learn more, visit www.mbausa.org!

And, since employers shouldn’t leave their financial future to chance, we’ll also hear from Gene Crescente of PNC about why it’s

PAVE THE WAY FOR PROFITABILITY AND GROWTH!

mbabizmag.com • MARCH 2020

OUR FOCUS. YOUR VALUE.

LET’S OPTIMIZE YOUR ENERGY STRATEGY. The energy market is constantly evolving. For you, that spells opportunity. By combining our expertise with your needs, we can lead you to an energy plan that yields long-term savings. From upfront analysis to a tailored procurement strategy — diligence through implementation — our team can make energy a key component in driving your business forward.

Judy Rosatti MBA EnergyAdvisor Direct Phone: 814-314-1933

COVER STORY | LOCAL PROFILE

MBA Energy Program Offers Predictability, Budget Stability and Peace of Mind for Members There are few things that are predictable in business — including the energy market.

Engineer Manager Jim Gunter. “It was a new and somewhat confusing process, and the EEA-PA helped navigate the process.”

With numerous electric suppliers promising great savings by locking in long-term contracts, it can be confusing to know if you are getting the best rate and the best service. Add to this constant rate changes, determining when or if you should switch suppliers, and for how long, can be a difficult choice for any business, large or small. That’s where the expertise of the Manufacturer & Business Association’s (MBA) energy program, EnergyAdvisors, stands out. For participating member companies across Pennsylvania, including the Penelec, PPL, West Penn, Penn Power, PECO, MetED and Duquesne Light utility areas, the MBA program provides predictability and budget stability for all of their energy needs — no matter their size or energy usage. “Throughout our partnerships, we can quote all the largest suppliers on our members’ behalf, so we can provide the most competitive and beneficial strategy for long-term success,” says EnergyAdvisor Judy Rosatti. “Our mission is to provide our members with the ability to make good decisions when it comes to their energy supplier, as well as peace of mind, trust, accessibility and reliability. So far, we’ve helped hundreds of member companies save millions of dollars on their electricity costs — and we’re here for you, as well!”

With the option to use MBA partner and energy consulting firm BidURenergy, Inc. in 2014, Ridg-U-Rak received multiple offers for its energy supply from pre-qualified companies. “This saved us a lot of time and maintained the confidence of working with the MBA,” Gunter says. “Working with EnergyAdvisor Judy Rosatti has made the process very easy. She obtains the best pricing in the marketplace for our loads that fit our needs. We plan to continue this partnership in the future.” A Valuable Resource Harry Elinsky Jr., president and chief executive officer of Filtech in West Homestead, Pennsylvania, near Pittsburgh, is one of the more recent MBA members to realize the advantages of the EnergyAdvisors program. The company, which specializes in filtration equipment and replacement filters, was contacted by the MBA to consider getting an analysis of its energy costs and usage. Previously, Filtech had used the same energy supplier for 10 years but hadn’t actively pursued other options. Turns out, EnergyAdvisors could provide more electricity savings over the long term through a different supplier. According to Elinsky, the savings potential is considerable for Filtech, which eight years ago switched from a gas system to a variable refrigerant flow (VRF) system to heat and cool its offices. Coupled with the VRF system and the switch in energy suppliers, Elinksy estimates $6,000 in energy savings per year.

Judy Rosatti, EnergyAdvisor

A History of Savings Ridg-U-Rak Inc., one of the largest pallet rack storage manufacturers in North America, has reaped the rewards of the energy program for its North East, Pennsylvania operations. The family owned company, which has sizable energy demands, has three facilities in Northwest Pennsylvania that provide more than 400,000 square feet of manufacturing capability and warehousing space. In fact, Ridg-U-Rak was one of the first companies to learn about EnergyAdvisors when the MBA started the program at the height of electric deregulation in 2009. In 2010, Ridg-U-Rak was approached by the MBA about the program, then called the MBA Employers’ Energy Alliance of PA, Inc. (EEA-PA). “The MBA was gathering member companies together to help shop for electric suppliers with a large volume and, therefore, obtain lower cost,” explains Ridg-U-Rak Plant

“That savings more than pays our membership tenfold with MBA, and we utilize many of the MBA’s services, such as training,” says Elinsky. “We are very pleased with our membership, and it has been a very positive aspect for our company, bringing resources to us that we didn’t have before.” Energy Savings Made Simple By allowing EnergyAdvisors to review members’ energy usage and provide a detailed analysis of their potential savings, MBA members can be confident in their energy procurement strategy going forward. “We’ll answer your questions, review all options available to meet your needs and develop an efficient energy strategy to manage your risk and maximize your savings,” says Rosatti. “It’s energy savings made simple.” For more information, call Judy Rosatti at 814/833-3200 or 800/815-2660 or visit www.mbausa.org/services-and-benefits/energy.

mbabizmag.com • MARCH 2020

SPOTLIGHT Q&A| SUCCESSION PLANNING

PNC Exec Shares Tips On Business Transition Planning A business transition and/or sale plan are critical to putting your goals and priorities in place to help ensure a successful and profitable “exit strategy” process in the future. Here, Gene Crescente, senior vice president at PNC Wealth Management, answers some key questions about why it is important to have a clearly defined strategy in place. Without a clearly defined “exit strategy” in place, you may be leaving your personal and financial future to chance. How do you know when the time is right? You don’t! Waiting until you feel the time is right will inevitably leave you scrambling when an interesting offer comes in … or when some life-altering event occurs. The best way to plan for a business exit is to continually incorporate that into your everyday business strategy. A well-run business is many things, including one that someone will pay a premium for because you have all of the pieces in place for it to run well without you there. And if your business is not ready to transition, it’s likely that your personal planning also will be insufficient to meet your needs. What are the first of next steps you should take? Take a critical look at your operation. Look at each area of the business (sales, operations, office functions) and ask yourself “what will happen if I am not here … can each department function for an extended period of time?” If not, do you have the right people in place and have you given them the proper training and actual authority to run their area. On the personal side, look at your finances. Are there enough assets to support your (and your family’s) lifestyle without the business? If not, how much would you need to accumulate to reach that point? That’s a shorthand way of figuring out what you

would need to net from the business, and it should help identify and drive the changes that should be implemented. What information do you need to start the business transition process? To properly plan, we need to look at both the business and your personal situation. You should have available all of the pertinent business documents (three years of financials, current year projections, business form documentation, etc.) along with any other important information (for example, ownership structure, notes/loans payable, expansion plans, etc.). On your personal side, you should pull out whatever estate plans you have in place, along with your investment account statements (including a 401(k) in the business, if you have one). Finally, you should have an “idea” number. That is what amount would I need to have in investments to make my idea of my next phase work for me and my family. It does not need to be exact; it’s there to set the table for the discussions to come. What are some succession planning best practices? The best practice when looking at succession planning is to make it part of your ongoing business strategy, no matter if your plan is to leave/sell the business to your family or sell it to someone else. If you always have an eye out for “what does this business need to run properly and succeed without me,” you’ll go a long way towards

developing a firm that is aiming to maximize its value. How and when should you include financial advisers in the process? Financial advisers are a critical part of getting your personal finances in shape so you can set yourself up for not being involved in the business, living the lifestyle you want and taking care of your family. You should consider working with a financial adviser who integrates financial planning into their offering, as investing without a plan for the future will probably not achieve your goals. Ideally, you should be working with a firm such as this throughout your working years. If not, now is a great time to start. Is there anything you would like to add? Business succession planning encompasses many things, but the most important thing to remember is that it is a process. A business transition that is hammered out in an afternoon will likely be unsatisfying to all involved, but one that is part of your ongoing business strategy and that is well prepared for will likely meet your business, personal and family needs. To learn more on business succession planning, please review our website https://www.pnc.com/en/corporate-andinstitutional/commercial-banking/businesssuccession-planning-process.html.

mbabizmag.com • MARCH 2020

What Is a Bulk Sale and Why Should You Care?

Complicating matters further, the Commonwealth can take a year or longer to issue a Bulk Sales Clearance Certificate. So, the reality is that the buyer must close without the immediate protection of a Clearance Certificate.

LEGAL BRIEF

Jay Alberstadt is a partner at MacDonald Illig and chair of the firm’s Real Estate Practice Group and Marketing Committee. He concentrates his practice in the areas of real estate, commercial and economic development, and conventional and tax exempt financing.

Even cautious purchasers of business assets (whether machinery, equipment or real estate) may not be aware of the hidden dangers of Pennsylvania’s bulk sales laws. Without requiring the government to file a lien against the assets themselves, these laws nevertheless impose personal liability on the purchaser of the assets for unpaid Pennsylvania taxes. A “bulk sale” occurs when there is a sale of 51 percent or more of the assets of 1) any taxpayer subject to Sales and Use Tax or Employer Withholding Tax, or 2) any corporation, limited partnership or

LEGAL BRIEF | AGREEMENTS

company (including limited liability companies, partnerships and sole proprietorships). Unless a purchaser in a bulk sale obtains Clearance Certificates from the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry, the purchaser has perpetual personal liability for any unpaid Pennsylvania taxes. The bulk sales laws initially require that the Department of Revenue and the Department of Labor and Industry be notified 10 days prior to the closing of the bulk sale transaction. Thereafter, to obtain a Bulk Sales Clearance Certificate, the seller must file an Application for Tax Clearance Certificate (Form REV-181) with both the Department of Revenue and the Department of Labor and Industry. While the Application can, in theory, be filed prior to closing, in practicality it is typically filed post-closing, as the seller also must complete and file all tax returns and pay all taxes due to the Commonwealth up to and including the date of the sale. This results in the dilemma of the buyer needing the Clearance Certificate to be protected following the closing, but not being able to obtain it until the closing has been consummated.

How does the buyer then protect itself until the Certificate can be obtained? First, make certain that the Agreement of Sale or Asset Purchase Agreement includes representations from the seller that the seller owes no Pennsylvania taxes. Second, obtain a full indemnity from the seller against liability for any such taxes. Third, obtain a certification from the seller’s certified public accountant that the seller has filed all required tax returns, paid all required taxes and is not subject to any audit. Finally, the buyer should also consider holding back money in escrow. Since a seller will most likely distribute the funds received from the sale of the property and dissolve the selling entity, personal guaranties of the indemnity provisions by the owners of the selling entity and an escrow of a portion of the purchase price until the Clearance Certificate is obtained are recommended. Less drastic measures may be sufficient in many cases. Not every sale of business property will be a bulk sale. Some sellers will be able to demonstrate and certify to the buyer that the assets being sold do not constitute 51 percent or more of the seller’s total assets. Another common scenario is a single purpose limited liability company seller of real estate, where the LLC has no employees or sales at retail. The LLC is likely a passthrough entity that pays/owes no income taxes (a certificate to this effect can be obtained from the Department of Revenue), and is not liable for Sales and Use or Employment Withholding taxes (no retail sales; no employees). In such circumstances, a bulk sales indemnity agreement from the entity and its owners will usually suffice in lieu of the more elaborate procedures outlined above. For more information, contact Jay Alberstadt at 814/870-7750 or jalberstadt@mijb.com.

mbabizmag.com • MARCH 2020

BUSINESS BUZZ | WHAT’S NEW PLASTIKOS, INC. INVESTS IN EQUIPMENT TO ADVANCE MICRO MOLDING CAPABILITIES

Plastikos, Inc., a precision medical injection molder, has further diversified its product portfolio with the purchase of two Arburg micro molding machines. Each machine is capable of delivering a shot size as small as 0.3 ounces of material. Medical sales for Plastikos increased by more than 10 percent in 2019 with a strong demand focused on smaller, miniature devices. Rob Cooney, Plastikos’ manufacturing manager, spoke highly of the opportunities that lie ahead for future micro molding projects, “Plastikos saw an opportunity as a result of an increasing trend within the medical industry through various micro fluidic and wearable devices. As components continue to be miniaturized and various hot runner technologies becoming available to go runner-less, it was, therefore, critical to provide smaller shot capabilities to ensure optimal barrel utilization and shot-to-shot consistency to maximize our quality and efficiency. These new machines provide us with the flexibility to meet our stringent customer demands at all cavitation levels.” The upgrades are currently being completed within Plastikos’ ISO 7 cleanroom, which is being tailored specifically to accommodate the two medical micro molding machines, complete with side entry robotics. Once finished, the expected capacity within Plastikos’ original cleanroom is projected to increase by 25 percent. Philip Katen, Plastikos’ president and general manager, explained that “Plastikos’ continued investment, both at Plastikos, as well as at Plastikos Medical, represents our commitment to grow with and to support our strategic medical device customers, as their business and product portfolio continues to expand.” Earlier this year, Plastikos attained its ISO 13485 certification and it was quickly followed by the grand opening of Plastikos Medical, a brand-new 25,000square-foot facility that is 100 percent dedicated to cleanroom medical injection molding, within an ISO 7 cleanroom environment. In total, Plastikos & Plastikos Medical have grown to 42 molding machines, nearly half of which are in an ISO 7 cleanroom. “We’re very excited to utilize these two brand new micro molding machines.” Katen explained, “It will enable our customers to provide the innovative medical devices that make their customers’ lives better every day.” Based in Erie, Pennsylvania, Plastikos and sister company Micro Mold specialize in precision mold design & fabrication, as well as tight-tolerance injection molding. For information, visit www.plastikoserie.com.

MARCH 2020 • mbabizmag.com

Plastikos, Inc. has invested in micro molding machines and is upgrading its cleanroom at the Erie, Pennsylvania facility.

ERIE FCU ANNOUNCES SPECIAL PATRONAGE BONUS

Erie Federal Credit Union (Erie FCU) recently announced that it would pay a special patronage bonus to its membership for the third consecutive year. The Patronage Bonus of $645,000 is larger than the past two years and was to be paid to eligible members in January. Over the past three years, Erie FCU has paid out nearly $1.8 million via its patronage bonus program. The Patronage Bonus was developed in order to distribute an equitable bonus back to members based on their individual account relationship and continued member loyalty over the past calendar year. Any active member in good standing on December 31, 2019 was eligible to receive a share of the declared Patronage Bonus. “As a credit union, we are very pleased to be able to return a portion of our earnings to our member-owners. This truly is what sets us apart from many for-profit financial institutions”, said Brian Waugaman, Erie FCU CEO. “2019 was another extremely successful year for us thanks to the many members who choose to take advantage of the products and services we offer.” Since its inception in 1936, Erie Federal Credit Union has grown its membership to close to 63,000 in Erie and Crawford Counties with assets of more than $543 million. For information, visit www.eriefcu.org.

VOTING SET FOR ‘WHAT’S SO COOL ABOUT MANUFACTURING’ CONTEST

The Northwest Contest of What’s So Cool About Manufacturing (WSCM) for middle schools in Erie and Crawford Counties is in full swing. WSCM is a student video contest with the goal to create awareness within the schools and the community about cool manufacturing careers through the eyes of 7th and 8th grade students. The team, guided by their Teacher Coach, conducts research, films at the company, and edits their video for final submission to be

eligible for several award categories, including Viewer’s Choice selected by online voting. The program started with Teacher Coach training back in October and culminates with a three-day online voting period for school videos (March 16-18) for other award categories, and an Awards Ceremony on March 26, 2020. Fifteen middle schools in Erie and Crawford County, paired with a manufacturer partner are competing this year. The community can get involved too by voting to select the Viewer’s Choice award winner at www. WhatsSoCool.org (look for Northwest contest). NWIRC is producing the program again this year, along with support from Career Street, WQLN, NWPA Job Connect, Erie County Technical School, Crawford County Career and Technical Center (CCCTC), and Precision Machining Institute (PMI), Crawford County K-12 Career Education Alliance, Progress for Industry (PFI), NWPA-NTMA, Haines Printing, Edinboro University, Remedy Intelligent Staffing, and McGill Power Bell. Participants include: Blessed Sacrament School (GeorgeKo Industries); Cambridge Springs Jr/Sr High School (Meadville Forging Company/MFC Group); Cochranton Jr/Sr High School (Acutec Precision Aerospace); Corry Area Middle School (Great Lakes Manufacturing); Erie First Christian Academy (Composiflex); Maplewood Jr/Sr High School (Area Tool & Manufacturing); Meadville Area Middle School (Mecal by Starn); North East Middle School (McInnes Rolled Rings); Rice Avenue Middle School (Micro Mold & Plastikos); Saegertown Jr/Sr High School (Peter’s Heat Treating); St. Gregory’s Parish School (Electric Materials); Union City Area Middle School (Corry Manufacturing); Walnut Creek Middle School (Beaumont Technologies); Wilson Middle School (American Turned Products); and Westlake Middle School (Modern Industries). Top winners among each of the contests will advance to the statewide awards on April 29 in Harrisburg. For information, visit www.WhatsSoCool.org.

TRAINING @ THE MBA LEARN IT TODAY . . . APPLY IT TOMORROW!

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 MBA CERTIFICATION PROGRAMS

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 SAFETY  QUALITY  MARKETING . . . AND MORE! HARNESS THE TRUE POTENTIAL OF YOUR WORKFORCE! REGISTER TODAY @ MBAUSA.ORG

APRIL



MAY



JUNE 2020

MANUFAC

CLASS LOCATIONS All courses are held at the MBA Conference Center in Erie, unless otherwise noted. Corry

Corry Higher Ed Council 221 North Center Street

Cranberry Twp. SMC Business Councils 600 Cranberry Woods Drive, Suite 190 Erie

MBA Conference Center 2171 West 38th Street

Meadville

Holiday Inn Express 18240 Conneaut Lake Road

St. Marys

Community Education Council 4 Erie Avenue, Suite 200

Warren

Warren/Forest Higher Education Council Curwen Building, 2nd Floor 589 Hospital Drive

* Handicap access and parking available at all sites.

LEADERSHIP

2020

APRIL

CERTIFIED SUPERVISORY SKILLS SERIES Course I 4/23 and 4/30 Course II 4/14 and 4/21 Course III (Corry) 4/8 and 4/9 Course III (St. Marys) 4/15 and 4/16 Course IV 4/8 and 4/15 Course IV (Corry) 4/22 and 4/23 LEADERSHIP FOR TEAM LEADERS SERIES Course I (Warren) Course II

4/30 4/22

INFLUENCE & PERSUASION (p.m. only) 4/3 FINANCE FOR THE NON-FINANCIAL MANAGER

4/16

MARKETING/COMMUNICATIONS

WRITING TO WOW! (a.m. only) 4/3 INTRODUCTION TO SOCIAL MEDIA (a.m. only) 4/17

DIGITAL MARKETING & SEO (p.m. only) 4/17

ONSITE TRAINING CONVENIENCE: Let our expert instructors bring the training you need, when you need it, where you need it. CUSTOMIZED PROGRAMS: From full-day to halfday programs, we will tailor any program to fit your specific needs. FOCUSED INTERACTION: Group training discussions focus on the key topic areas specific to your company’s environment.

EMAIL: MLESNIEWSKI@MBAUSA.ORG * A.M. classes run 8 a.m. to noon, and P.M. classes run 12:30 p.m. to 4:30 p.m., unless otherwise noted. Cancellation/No-Show Policy: If notice is four business days or more, a full refund will be made. If notice is less than four business days, or if you do not show up for the class, no refund will be made. NOTE: You may substitute another individual from your organization at any time and at no cost.

PRESENTATION SKILLS (a.m. only) 4/17 and 4/24

QUALITY BLUEPRINT READING GEOMETRIC DIMENSIONING & TOLERANCING

4/1 and 4/2 4/27 and 4/28

MEASUREMENT SYSTEM ANALYSIS (a.m. only) 4/28

SAFETY SUPERVISORY SAFETY ADVANCED CONCEPTS

4/1

ONE-DAY FOOD SAFETY CERTIFICATION

4/20

ACTIVE ASSAILANT & EMERGENCY PLANNING (a.m. only)

4/27

HUMAN RESOURCES HR ESSENTIAL CERTIFICATION SERIES Interviewing & Hiring (a.m. only) 4/16 Terminations (1 to 5 p.m.) 4/16 HR ESSENTIAL CERTIFICATION SERIES – ADVANCED FMLA & ADA (a.m. only) 4/23 Job Descriptions & Reasonable Accommodations (1 to 5 p.m.) 4/23

CTURER & BUSINESS ASSOCIATION

TRAINING SCHEDULE LEADERSHIP

MAY

CERTIFIED SUPERVISORY SKILLS SERIES Course II 5/21 and 5/28 Course III 5/12 and 5/19 Course IV (St. Marys) 5/6 and 5/7 Course V (Corry) 5/6 and 5/7 Course V 5/13 and 5/20 Course V (St. Marys) 5/27 and 5/28

JUNE

LEADERSHIP

CERTIFIED SUPERVISORY SKILLS SERIES Course I (Meadville) 6/2 and 6/9 Course I (Cranberry Township) 6/23 and 6/24 Course II (Meadville) 6/30 and 7/7 Course III 6/18 and 6/25 Course IV 6/9 and 6/16 LEADERSHIP FOR TEAM LEADERS SERIES Course I Course III (Warren) Course IV

6/23 6/11 6/10

ORGANIZED & EFFICIENT (a.m. only) 5/13

STRATEGIC FINANCE

6/11

WORKPLACE CIVILITY (a.m. only) 5/15

WOMEN IN LEADERSHIP

6/12

MARKETING/COMMUNICATIONS

MOTIVATE YOUR EMPLOYEES (a.m. only) 6/19

LEADERSHIP FOR TEAM LEADERS SERIES Course II (Warren) Course III

DEVELOPING WEBSITE CONTENT (a.m. only)

5/21 5/13

5/1

CREATING E-NEWSLETTERS (p.m. only) 5/1

QUALITY

MARKETING/COMMUNICATIONS MUST-HAVES OF EFFECTIVE COMMUNICATION (a.m. only) NEW: DIGITAL ANALYTICS

INTRODUCTION TO CONTROL CHARTS AND STATISTICAL PROCESS CONTROL (a.m. only) 5/19

SAFETY

ONE-DAY FOOD SAFETY CERTIFICATION NEW HIRE SAFETY TRAINING (a.m. only)

ONE-DAY FOOD SAFETY CERTIFICATION

5/18

ONE-DAY FOOD SAFETY CERTIFICATION (Cranberry Township) 5/11

HUMAN RESOURCES HR ESSENTIAL CERTIFICATION SERIES Harassment & Discrimination (a.m. only) Employment Law (1 to 5 p.m.)

5/14 5/14

HR ESSENTIAL CERTIFICATION SERIES – ADVANCED Handbook Essentials (a.m. only) 5/28 Understanding the Fair Labor Standards Act (1 to 5 p.m.) 5/28

“The HR Essential and Advanced Series expanded my knowledge of various topics in the Human Resources field. The classes were interactive and filled with great group discussions and current events. I would definitely recommend these courses to new members of HR, and I am grateful that I had the opportunity to attend!” — Jayme Turos, Erie Insurance

6/12 6/26

6/15 6/3

HUMAN RESOURCES HR ESSENTIAL CERTIFICATION SERIES Retention & Benefits (a.m. only) 6/11 Unemployment Comp & Workers’ Comp Basics (1 to 5 p.m.) 6/11 HR ESSENTIAL CERTIFICATION SERIES – ADVANCED Form I-9 Compliance & Onboarding (a.m. only) 6/25 Pre-Employment Screening (1 to 5 p.m.) 6/25

COMPUTER TRAINING Learn the coolest tips and tricks to the latest computer applications available today. Classes can be taken individually or as part of a certificate series. • Access Level I — 4/9 • Excel Basics I (8 a.m. to 11:30 a.m.) — 5/12 • Excel Basics II (12:30 p.m. to 4 p.m.) — 5/12 • Excel Level I — 3/31, 4/2, 5/5, 5/19, 6/4 or 6/9 • Excel Level II — 4/7, 4/21, 5/14 or 6/2 • Excel Level III — 4/16, 5/21 or 6/16 • PowerPoint — 6/18

CERTIFIED SUPERVISORY SKILLS TRAINING 25 YEARS 10,000 GRADUATES THROUGH THE MBA Thank You... for selecting the Manufacturer & Business Association as your preferred training provider! Our Certified Supervisory Skills series is considered one of the premier employee leadership programs in the region for businesses of every size and type. COMING SOON TO A TRAINING FACILITY NEAR YOU!

To request this program in your area or to schedule a class onsite at your facility, please contact Patty Welther at 800/815-2660, 814/833-3200 or Pwelther@mbausa.org. Visit mbausa.org to view upcoming public offerings.

HUNTINGTON BANCSHARES NAMES SAMSUNG EXEC TO BOARD OF DIRECTORS

The Board of Directors of Huntington Bancshares Incorporated unanimously elected as a member, Alanna Y. Cotton, senior vice president and general manager for product marketing at Samsung Electronics America, Inc. Cotton joined Samsung Electronics America in 2014. In her current role, she is responsible for financial and brand performance of the high-growth segments of the mobile technology market, including personal computing, tablets, virtual reality and wearable tech. Previous Samsung roles included general management and marketing for mobile computing and wearables. Prior to Samsung, Cotton served in a variety of senior leadership roles at PepsiCo, where she led the growth strategy for a number of Frito-Lay brands and held sales and operations roles for other PepsiCo businesses. She began her career as a new product startup leader at Procter & Gamble with responsibility for product launches and innovation. “Alanna has an impressive track record of leading and driving business growth for wellknown and respected global brands. Her ability to develop and collaboratively partner with other companies to build the right presence, platform and tools to capture customers across the digital journey is of tremendous benefit to Huntington as we continue to focus on customer experience as a brand differentiator,” said Stephen D. Steinour, chairman, president and chief executive officer of Huntington. Brand Innovators, a consortium of brand marketers from the world’s top brands, named Cotton one of the Top Women in Marketing in 2018. Cotton also was named one of the Most Powerful Women in Consumer Technology in 2016. She serves on the CMO Advisory Board of Ridge Ventures. Cotton earned her bachelor’s degree in enviromental engineering from Northwestern University and her MBA from Stanford University. Huntington Bancshares Incorporated is a regional bank holding company with $109 billion of assets and a network of 868 full-service branches and 1,442 ATMs across seven Midwestern states, including Pennsylvania.

named a member of the board of directors for London, Ontario-based VersaBank subsidiary DRT Cyber Inc. DRT Cyber is focused on developing innovative cybersecurity solutions to address the rapidly growing cyber threats facing financial institutions, government and multinational corporations. Chaffee was special assistant to the president, senior director, public liaison for the Executive Office of the President, Office of Homeland Security with a focus on border security and international trade.

TRADE ASSOCIATION HONORS ERIE RESTAURATEUR WITH LIFETIME ACHIEVEMENT AWARD

The Pennsylvania Restaurant & Lodging Association (PRLA) recently announced the recipients of the 2019 Spirit of Hospitality Awards. Each year, PRLA honors exceptional members of the association and the hospitality industry for their leadership, commitment and service to the industry and community. The 2019 awards gala took place on November 18 at the Omni Bedford Springs Resort. The “recipients of the Spirit of Hospitality Awards reflect the dedication and diversity of our industry’s workforce,” said John Longstreet, president & CEO of PRLA. “Our members are committed to providing great customer experiences, and we are pleased to honor the individuals and businesses who make that happen.” Mike Barrett, owner and operator of the Sunset Inn in Erie, Pennsylvania, was honored with the PRLA’s Lifetime Achievement Award. The award is presented to long-standing PRLA members who have demonstrated continuous support of the industry and association throughout their career. The food and beverage team from DoubleTree by Hilton Hotel & Suites Pittsburgh Downtown received the 2019 Wilmer S. Lapp Community Service Award for their commitment to fighting hunger in Pittsburgh. Through their participation in the annual Taste of the NFL, they have raised more than $156,000 for the Greater Pittsburgh Community Food Bank.

PEOPLE BUZZ | AWARDS AND PROMOTIONS THE ERIE COMMUNITY FOUNDATION WELCOMES NEW BOARD TRUSTEE

The Erie Community Foundation has announced the addition of a new trustee to the board, Thomas A. Tupitza, Esq., president of Knox McLaughlin Gornall & Sennett, P.C.

Tupitza, a graduate of Westminster College and Harvard Law School, advises clients in the private, public and nonprofit sectors on finance, real estate and governance matters. A past president of the Pennsylvania Association of Bond Lawyers, he is active as bond counsel in tax-exempt financing transactions. He is an elected member of the American Law Institute and is admitted to practice in Pennsylvania and New York. Tupitza currently chairs the board of the Erie Regional Chamber and Growth Partnership and is a director of the United Way of Erie County, the Warner Theatre Preservation Trust, and the Foundation for Erie’s Public Schools. He has served as board chair of UPMC Hamot and Westminster College and as a board member of several charitable organizations, including UPMC, the Pennsylvania Legal Aid Network, and Hamot Health Foundation. “We are excited about the addition of Attorney Tupitza who will bring fresh perspective to our board,” said Foundation President Michael L. Batchelor. “He will serve three-year terms, renewable to nine years, which assures continuity of input and the presence of strong civic leaders guiding our Foundation.” Tupitza joins other board trustees Marcus Atkinson, Michael L. Batchelor, Rev. Dr. Donald L. Baxter, Jr., William M. Hilbert Jr., Timothy M. Hunter, Charles G. Knight, III, CPA, Lynn M. McBrier, Esq., Sarah Hagen McWilliams, Deborah W. Murphy, CFP®, Dionne Wallace Oakley, David M. Tullio and James R. Walczak, Esq. The Erie Community Foundation works to improve the quality of life for all in the region by evaluating and addressing community issues, by building permanent charitable endowments and by promoting philanthropic and community leadership.

CHAFFEE NAMED TO BOARD FOR CYBERSECURITY FIRM

Barbara Chaffee, chief executive officer of the Tom Ridge Environmental Center Foundation and the former CEO of the Erie Regional Chamber and Growth Partnership, has been

mbabizmag.com • MARCH 2020

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MARCH 2020 • mbabizmag.com

2/7/20 4:13 PM

ON THE HILL | EDUCATION & WORKFORCE DEVELOPMENT

America Must Ready Learners for Demands of 21st Century Workforce With Skills-Based Education Congressman Glenn “GT” Thompson represents Pennsylvania’s 15th District in the U.S. House of Representatives. He is in his fifth term and serves in the House Education and Labor Committee, House Agriculture Committee and is the ranking member on the General Farm Commodities and Risk Management subcommittee. There is no cookie-cutter learner. The men and women who participate in the American education system are as diverse as the makeup of our country. Due to varying needs, circumstances and intentions, one-size-fits-all programs do not work for many, especially nontraditional learners. Moving into the future, we must recognize these factors and ensure that education remains flexible for all Americans. In Congress, I’m proud to serve as cochair of the bipartisan House Career and Technical Education Caucus, a group of legislators who believe that proper skillsbased education can lead to well-paying, family-sustaining jobs while simultaneously closing our nation’s skills gap. There are more than 7.1 million jobs open across the country. Many industries and employers are having a hard time recruiting the skilled workers needed to fill positions in STEM (science, technology,

engineering and mathematics) disciplines like nursing, energy, information technology and cybersecurity. Many of these positions require more than a high school diploma, but not a four-year college degree. There is an obvious disconnect. All too often, students are pigeonholed into a traditional four-year-plus college degree program because that’s what they’ve been told to aspire to for so long. We need to defy the misconception that a traditional college experience is the only way to have a successful and rewarding career. That’s why I’ve been proud to champion legislation that supports educational outlets that ready learners of all ages for a 21st century workforce. To directly address the workforce shortage in cybersecurity, I was proud to co-sponsor H.R. 1592, the Cybersecurity Skills Integration Act, with my colleague and fellow Career and Technical Education Caucus co-chair, Congressman Jim Langevin of Rhode Island. This bill will create a pilot program through the Department of Education to award grants to create or expand existing post-secondary CTE (career and technical education) programs into cybersecurity competencies. Learners who commit to a technical education in cybersecurity will play a crucial role in helping the United States defend itself from bad actors who attempt to harm our critical infrastructure. A successful career begins with a wellrounded view of what the workforce

entails. Effective counseling can assist learners in better understanding their educational options and career prospects while preventing students from taking on sizable debt. That’s why Congressman Langevin and I also worked together to introduce H.R. 5092, the Counseling for Career Choice Act, to better equip high school students with the resources to choose the best career path and eventually enter the workforce. The bill also invests in professional development opportunities for counselors to ensure they stay up to date on workforce trends and postsecondary opportunities. There has always been a common theme when it comes to workforce development. No matter who we are talking about — high school students, college students, veterans or those who are perhaps reentering the workforce after quite some time — the pathway to success looks different for everyone, and that’s a good thing. I envision an education system where learners of any age can enter, obtain the education they need and achieve the greater opportunity that work can provide. It is crucial that we provide quality resources, information and education to restore the rungs on the ladder of opportunity for all individuals. With effective career development and skills-based education, we can put learners of all ages in the driver’s seat of their own futures. mbabizmag.com • MARCH 2020

simple.

“When we needed financing for a major addition and renovation at our Harborcreek location, we quickly learned how difficult that whole process can be. “But then we talked with Marquette and everything changed. They are a community-minded, mission-driven organization just like us. Because the process with the financing was so collaborative and seamless, we now do all our banking at Marquette. They made everything so easy — it was incredible! “That’s why we’re with Marquette.”

– AARON LUNDBERG, Executive Director Grace Church

“When you have an opportunity to sit across the table from a business owner — and drive by their business every day — you have a perspective that out-of-town decision makers can never have. If we can find a way to help a local business grow and prosper, we all prosper. And our hometown becomes stronger.” – JOHN DILL, Executive Vice President, Business Banking

Talk with us at 814-314-8214. Or visit MarquetteSavings.bank/business for more information.

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HR CONNECTION | WORKPLACE TRENDS SURVEY: MORE THAN HALF OF U.S. CFOS EXPECT RECESSION IN 2020

More than half of U.S. businesses expect a recession to occur in 2020, coinciding with the timing of the presidential election, according to fourth-quarter results from the Duke University/CFO Global Business Outlook. Seventy-six percent predict a recession by mid-2021. The CFO Survey has been conducted for 95 consecutive quarters and spans the globe, making it the world’s longest-running and most comprehensive research on senior finance executives. “Business leaders continue to expect an economic slowdown in the United States before or concurrent with the presidential election,” said John Graham, a finance professor at Duke University’s Fuqua School of Business and director of the survey. “I’d expect uncertainty about the election itself to cause firms to slow expansion in the summer and fall of 2020.”

Might It Take Money to Save Money? Most of us know the saying, “It takes money to make money.” But what about, “It takes money to save money”? Lean Six Sigma is famously credited for driving increased productivity and improved efficiency or, in other words, “doing more work” for the same cost or “doing the same work” for less cost. Quantifying these cost improvements may seem an easy task, but sometimes companies fail to make the benefits real to their bottom line by not making the up-front investments necessary to realize the true benefit. This not only hurts the financial statement, but it can also undermine the confidence in Lean Six Sigma programs for both management and employees.

Fifty-six percent of U.S. companies indicate they are taking steps to prepare for a recession. Among these firms, 59 percent are strengthening their balance sheets, 58 percent are reducing costs, 49 percent are increasing liquidity, and 31 percent are scaling back or delaying investment.

SURVEY: NEARLY 8 IN 10 EMPLOYERS EXPRESS CONCERN ABOUT FINANCIAL STABILITY OF WORKERS

In MassMutual’s 2019 Workplace Financial Wellness Study, survey data gathered by Greenwald & Associates, reported that a large majority of employers believe their employees are struggling financially in saving for retirement, settling debt and dealing with medical costs.

“Hard dollar” savings, such as reduced scrap or lower raw material costs, are usually straightforward benefits, but labor savings is often a “soft dollar” savings with some potential issues associated. For example, if a Lean Six Sigma project makes Process A run more efficiently such that 10 employees can accomplish the production demands that used to require 12 employees, the project might claim a 16.6-percent increase in labor efficiency and a cost savings related to a reduction of two full-time equivalent employees. However, if all 12 employees are still on the payroll, did the company really save anything? To have a real bottom-line cost savings, two employees either need to come off the payroll or they need to be redeployed to a position the company was prepared to hire. This is a very sensitive issue for Lean Six Sigma to be welcomed and become part of the company culture. If employees see Lean Six Sigma as mostly a job-cutting strategy, employees will feel threatened and won’t likely participate. If management only sees “soft” or theoretical cost savings, they too may fail to embrace the effort. Typically, the Financial Department can help by establishing a continuous improvement/cost savings framework that promotes continuous improvement projects that can be married to employee attrition, transfers, redeployment and/or hiring plans. This requires the company to invest in education and training, to incorporate the framework to ensure that the right projects get worked on, and to create a culture that makes employees feel valued and safe — a core part of the continuous improvement process. Lean Six Sigma projects that improve efficiency in areas or departments within the business can drive real cost savings for the company’s bottom line, but it may take some more investment up front before you truly feel it in the bottom line.

In the survey findings, nearly eight in 10 (79 percent) plan sponsors believe their employees are struggling financially, with larger employers showing to be 13 percent more likely to express concern about employee financial issues compared to employers with the smallest asset level. Among employers, 51 percent of those reporting concern estimate that at least 25 percent or more of their workers struggle financially, with 15 percent of employers estimating that upwards of 50 percent of employees are experiencing financial difficulties. Currently, most employers (53 percent) believe that employees are struggling financially from hearing them talk about it, with 46 percent delineating risk from retirement plan participation and from those who have second jobs. The most prevalent issues cited by employers according to total concern were financial readiness for retirement (67 percent), ability to pay future medical expenses (64 percent), and participation in an employee’s retirement plan (62 percent). Lesser concerns included consumer (43 percent) and student loan debt (35 percent).

Join us for the MBA’s next three-day Six Sigma Green Belt workshop on March 11, April 15 and May 13. Visit www.mbausa.org to register!

Ray Davis is a training instructor at the Manufacturer & Business Association and managing partner of Supply Velocity, a leader in highly effective execution, Lean Process Improvement and Supply Chain Management.

mbabizmag.com • MARCH 2020

LEGAL Q&A | GET ANSWERS WE HAVE EMPLOYEES WHO COME TO WORK SICK. CAN WE SEND THEM HOME? When sick employees show up for work, known as “presenteeism,” there is a significant and costly impact on an organization. There is a risk of spreading the disease but also diminished productivity, quality and attention to safety. Employers generally have the ability to keep their workplaces safe and healthy by sending apparently sick and/or contagious employees home or asking them not to report to work in the first place. If the employees are nonexempt, then they would not need to be compensated for time not worked. Alternatively, you may require the use of banked PTO to cover the missed time. If the employees are exempt, then you also are permitted to require the use of PTO for the missed time. WHAT ARE SOME UNIQUE PTO FEATURES A BUSINESS COULD CONSIDER WHEN DEVELOPING THEIR PTO POLICY? Employees’ engagement and sense of value are directly related. If you want employees — or prospects — to be engaged with your business, they must also feel valued by it. This is essentially the thought behind offering an attractive PTO policy: showing workers you care by offering them more. This doesn’t mean you need to offer employees unlimited PTO or pool time into a PTO bank, necessarily — only that you need to be more creative with your policy offerings if you want to attract and retain talent. Combined with competitive total compensation, a well-designed PTO policy can keep your top employees on board. Below are some imaginative benefits you may consider tacking onto your PTO policy: • Volunteer days — Employees can take time off to volunteer. Depending on the set up, these could be additional days set aside and not included in a primary PTO bank or they could simply be another PTO category. • Extended holidays — Many businesses slow down during the holidays, so some employers give employees extra days off during that time. If your business thrives during the holiday season, consider offering free days off when you’re less busy to reward employees after the rush.

Is PTO Right for Your Organization? Taking a sick day or requesting vacation is a thing of the past for many companies. In recent years, many companies are experimenting with paid time off (PTO) as opposed to the traditional vacation, sick and holiday benefits packages. Understanding PTO Unlike traditional benefits, PTO is a bank of hours that employees can draw from for a number of reasons, including taking a vacation, taking care of a sick child, going to a doctor’s appointment or needing a personal day off from work. Employers either credit the employee’s bank every pay period with a specified amount of time that they can use, or credit the year’s worth of days at the start of the year. For instance, if the employer would offer paid holidays, vacation, personal days and sick leave days, then the employee would bank PTO days off in their place. Instead of these days being itemized by the employer for a specific purpose, the employee uses the days at his/her discretion. (Some PTO plans keep paid holidays separate from the rest of the PTO.) There are two ways to distribute PTO days. Some employers credit the full annual number of days to the employee’s account on January 1. Others prefer the days to accrue throughout the year and deposit days each pay period. PTO plans promote a work-life balance by allowing employees to determine when they should take time off and what they should use it for. Benefits of PTO There are several benefits for both the employee and the employer of using a PTO plan versus the traditional vacation and sick benefits allotment. • The company appears more attractive to potential employees and current employees because they are allotted more days to take off. Since most employees do not use all of their sick days, they view the lump sum days as more vacation time. • Employees are treated as adults and are able to make their own decisions regarding vacation and personal time without having to provide an explanation to their employers. • Employees do not have to lie about being sick to take care of personal issues that they would rather not discuss with their employer. • Healthy employees don’t feel “penalized.” • Employers have more control over unscheduled absences that can become very costly. Regardless of whether you have traditional time off categories in place, or you decide to move to a PTO bank model, offering employees time off from work can be an easy way to round out your benefits package. If you have any questions, or need assistance with your PTO policy, the MBA Legal and HR Services are here to help.

Tammy Lamary-Toman, JD, PHR, SHRM-CP, is vice president and employment counsel at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or ttoman@mbausa.org.

MARCH 2020 • mbabizmag.com

IT’S TRUE. {YOUR} TIME IS MONEY. HR/LEGAL HELP IS HERE Human resources is a critical component of every business. Yet if you’re like most small-to-mid size companies with limited staff and resources – you spend more time putting out internal fires than solving your customers’ problems, expanding value and improving performance to bolster your bottom line.

MBA HR & Legal Team

PART-TIME, ALL-THE-TIME, ANYTIME HR/LEGAL HELP IS HERE.

Tammy Lamary-Toman, JD, PHR, SHRM-CP

Whether you need assistance on a complex short-term project or a little help week-to-week, our certified-HR consultants and labor and employment law attorney are ready to help put time back on your side! Part-time Human Resource Services Include: • Employee Relations • Recruitment/New Hire Process • Termination & Employee Separation • Benefit Administration • Employment Law Compliance • Recordkeeping Compliance • Unemployment Compensation • Developing Policies & Procedures • Employee Performance Measurement • Workers’ Compensation • Workplace Harassment Training

Call: 800/815-2660, 814/833-3200  Visit: www.mbausa.org

Vice President/Employment Counsel ttoman@mbausa.org

Stacey Bruce, SPHR, SHRM-SCP Director of Human Resources sbruce@mbausa.org Rachel Tserkovniak Human Resource Consultant and Trainer rtserkovniak@mbausa.org Rose Bruno, PHR, SHRM-CP Human Resource Consultant rbruno@mbausa.org

Today, more and more women are taking risks, embracing new opportunities and effecting change in key leadership roles. But, when it comes to the workplace, there is still a long way to go. Join us as we hear from a local difference maker and Fortune 500 company representative on the importance of fostering motivation, team building and talent within your organization that can have a powerful impact on your business and community as a whole. Ann Scott is the community outreach manager for Erie Insurance where she oversees the company’s charitable giving and community outreach, including philanthropy, volunteerism and employee giving. Before assuming her current role with the Erie Insurance Giving Network, she had a long career in human resources, with a focus on diversity and inclusion. In 2012, the Mercy Center for Women named her a “Woman Making History” for her contributions to supporting women and youth in the community. PRESENTED BY:

EVENTS & EXTRAS | NETWORKING & MORE

The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events or to view the MBA’s photo gallery, visit www.mbausa.org.

to learn s gathered in the Founders Room Association members and guest s tive, during a recent Eggs ‘n’ Issue more about the Erie Forward initia a five-year, Center in Erie. Erie Forward is briefing at the MBA Conference to aims that development initiative regional economic and community ing n and talent development build oratio collab th, grow mic econo enhance ty’s citizens. Coun Erie of all for ties rtuni oppo

Tom Micelotta, senior project director of National Community Development Servi ces, also addressed the Erie Forward initiative at the Manu facturer & Business Association’s January 23 Eggs ’n’ Issues briefing.

James Grunke, president and chief executive officer of the Erie Regional Chamber & Growth Partnership, discussed the Chamber’s Erie Forward Initiative at the MBA’s January breakfast briefing.

Representatives from the MBA were given a tour of the Donjon Shipbuilding & Repair facility in January. The Erie company marked its 10th anniversary in 2019 and is the most recent addition to Donjon Marine’s family of services.

PNC Wealth Management McGill Power, Bell & Associates, Business transition exper ts from priorities for their and goals set to how t abou bers and MacDonald Illig spoke to mem Sale Planning event in the Board & ition Trans ess Busin ry organizations at the MBA’s Janua of Governors Room.

mbabizmag.com • MARCH 2020

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

It’s nice to know that sometimes you don’t have to change a thing. 96% of businesses that choose UPMC Health Plan stay with UPMC Health Plan. You’ve given a lot of thought to your employees’ health coverage. And you’ve come to a familiar conclusion – nothing’s better than UPMC Health Plan. Choose us for affordable plan options. Full in-network access to UPMC along with other doctors and hospitals in the community. Care when you travel. Service from a designated Health Care Concierge. And health tools that keep up with busy lives and schedules. All this is worth sticking with, don’t you agree? To learn more, visit UPMCHealthPlan.com/employer.

#stickwiththeplan

March 2020 Business Magazine

Articles inside

LEGAL Q&A

What is a bulk sale and why should employers care? Jay Alberstadt

Saving to Transform

BUSINESS BUZZ

PEOPLE BUZZ

HR CONNECTION

EnergyAdvisors

Why America must ready learners for the demands of the 21st century workforce with skills-based education. Congressman Glenn “GT” Thompson

Gene Crescente, senior vice president at PNC Wealth Management, answers some key questions about why it is important to have a clearly defined business transition and/or sale strategy in place