The Manufacturer & Business Association. We don’t sell energy. We represent you, our members – employers who face increasing energy costs in an increasingly competitive environment. Through our new service, called EnergyAdvisors, we analyze your specific energy use, your energy needs, your energy costs. And then we work with pre-qualified energy suppliers who bid on your business, offering long-term fixed-rate pricing, variable rates indexed to the Day-Ahead Market and blended rate programs. What you receive are the best energy buys for your business. We can also provide energy curtailment options – how you can earn back as much as 40% of your bill simply by being on standby for reducing electricity during emergency power demands. If you want to save big-time on your energy bills, call me at 814-833-3200.
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2171 W. 38th Street • Erie, PA 16508 • MBAenergyadvisors.com
Manufacturer & Business Association
VOLUME XXVIII, NUMBER 5 MAY
2015
BUSINESS M A G A Z I N E 110th Annual Event
A CONVERSATION WITH
T. BOONE PI C K E N S
Page 22
Special Guest: Moderator John Hofmeister, founder and CEO of Citizens for Affordable Energy and former president of Shell Oil Company / Page 25
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Table of Contents VOL. X X VIII, NO. 5 MAY 2015
3 12 22
Chairmanâ&#x20AC;&#x2122;s Message Bill Hilbert Jr., president of Reddog Industries and chairman of the Manufacturer & Business Association Board of Governors
EnergyAdvisors, A Member Service of MBA $ 0(0%(5 6(59,&( 2) 0%$
The Association introduces a new name and logo for its energy program to better reďŹ&#x201A;ect its expanded energy solutions
A Conversation With T. Boone Pickens Legendary oilman and energy activist to address his professional success and mission to enhance Americaâ&#x20AC;&#x2122;s energy independence at the MBAâ&#x20AC;&#x2122;s 110th Annual Event
Featured Companies â&#x20AC;˘ Career Street .............................................. 18 â&#x20AC;˘ Home Instead Senior Care........................... 38
Manufacturer & Business Association Board of Governors Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Philip Katen C. Bruce Kern II Paul Kenny Jeff Plyler Mark Rose Greg Sbrocco Mike Weber
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. â&#x20AC;&#x201C; Board of Governors Manufacturer & Business Association 2171 West 38th Street , Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org
Editor in Chief Ralph Pontillo rpontillo@mbausa.org
48
Insurance Services A look at employer-based health care ďŹ ve years into ObamaCare
Executive Editor John Krahe jkrahe@mbausa.org
Managing Editor & Senior Writer Karen Torres ktorres@mbausa.org
53
2015-2016 Board of Governors Tim Hunter, immediate past chairman of the Manufacturer & Business Association Board of Governors and president and CEO of McInnes Rolled Rings
55 71 73
Board ProďŹ les
Advertising Sales Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org
Photography Casey Naylon Erie Times-News Karen Torres Todd Korol/Reuters/Corbis.com iStockphoto.com
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
Additional Design Casey Naylon
In Memoriam Association pays tribute to longtime business leaders Chet Giermak and Ed Mead
Association Professional Staff
Š Copyright 2015 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 sufďŹ cient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not speciďŹ cally 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.
Company ProďŹ les B&T Janitorial Services................................... 37 Hoffman Industrial ........................................... 7 Loesel-Schaaf ................................................ 69 ROGâ&#x20AC;&#x2122;S, INC. .................................................. 41 UPMC Health Plan........................................... 5
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Professional Listings Whoâ&#x20AC;&#x2122;s Who in business and industry
For the most current Business Magazine updates, visit www.mbabizmag.com, fan us on Facebook, follow us on Twitter or connect with us on LinkedIn!
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May 2015 > www.mbabizmag.com > 1
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Chairman’s Message Bill Hilbert Jr. is the 2015-2016 chairman of the Manufacturer & Business Association and president of Reddog Industries, Inc., an Erie, Pennsylvania-based manufacturer specializing in large component precision machining, design and manufacture of high-pressure plastic injection molds and aluminum and zinc die-cast dies, including full-service mold and die revision and repair.
Dear Members: As the 2015-2016 chairman of the Manufacturer & Business Association Board of Governors, it gives me great pleasure to share with you the Association’s accomplishments and goals for the coming year. It has been a very productive time for the MBA thanks to the active participation of our Board, member companies and professional staff. As we mark this, the Association’s 110th milestone anniversary, know that we remain committed to the organization’s core mission — applying our talent, tools, training and services to help you, our members, achieve a higher level of success in your business operations. Presently, the MBA partners with more than 4,500 businesses in Pennsylvania, New York and Ohio, providing a host of membership benefits, from HR planning and legal services to computer training, energy consulting, insurance and employee benefits. The Association is also very much a leader in the area of professional development, including our regionally recognized Certified Supervisory Skills training, delivering the knowledge and skills that employers need to compete in today’s business world. Developing and maintaining a high quality work force is one of our most essential functions. Here, at the Association, we believe that a skilled and growing labor pool is critical to attracting and retaining business, as well as fostering a healthy, vibrant community. The MBA supports short- and long-term work-force needs by backing a slate of dynamic initiatives and programs that connect talent, opportunity and education. These diverse programs include, but are not limited to, Americans for the Competitive Enterprise System, Junior Achievement, the Your Employability Skills (YES™) Certificate Program, Patrick R. Locco Scholarship Awards, American Manufacturing Tribute Bike Tour, as well as Career Street (see Page 18), a growing resource for businesses to create experiences such as internships, job shadows and company tours for local students. One of our most exciting initiatives to date has been the foundation of the Erie Regional Manufacturing Partnership. A group of 20 manufacturers, including my own company, have banded together to address the critical issue of workforce development and the shortage of skilled workers. Each
company has made a significant financial commitment of both money and personnel to explore, develop and execute a private sector-driven solution. I’m proud to report that the group is currently implementing a strategy that includes the development of an apprenticeship program and working closely with a consortium of work-force development agencies and business organizations, including the Association and the Erie Regional Chamber & Growth Partnership. We are working together to develop permanent solutions that will help our young people take advantage of skilled jobs within their community. These are not just jobs but rather challenging careers with the potential for growth in both income and skill levels. The 20 members of the Erie Regional Manufacturing Partnership are committed to make this happen. The Association, in collaboration with the Erie Central Career and Technical School and Erie County Technical School, also has taken further steps to bridge the growing skills gap by launching Employer-Student Connection. This website portal acts as an entry point for students to see what technical training they need for good jobs. Additionally, the MBA is a staunch supporter of the Project Jobs initiative in conjunction with the Erie Chamber. Project Jobs is designed to educate Erie County jobseekers on what positions are currently available while also giving employers a platform to share their employment and training needs in the long term. In fact, the MBA Board of Governors recently passed a resolution to support and assist the Rural Regional College during its formative stage this year because of its potential to fill a large gap for employers. We believe our success is tied to an intelligent, skilled work force that will help drive our industry and innovate for the future. With the support of our members and Board, I am proud to say that the MBA’s journey toward excellence and a well-trained work force will continue, and we are in a position to meet any challenges that come our way. Sincerely,
Bill Hilbert Jr., Chairman May 2015 > www.mbabizmag.com > 3
“I chose UPMC Hamot.”
Unable to breath and unaware he was suffering a pulmonary embolism, Rick chose to go to UPMC Hamot. With advanced heart and lung care delivered 24/7, he was able to quickly undergo a state-of-the-art technique, helping to greatly reduce his risk of dying and improve his quality of life. “The team at UPMC Hamot was obviously very knowledgeable because they were ahead of the game every step of the way,” he says. “They saved my life.” — Rick K.
UPMCHamot.org/Choose
Affiliated with the University of Pittsburgh School of Medicine, UPMC is ranked among the nation’s best hospitals by U.S. News & World Report.
CO M PA N Y P R O F I L E
UPMC Health Plan Erie Main Office 109 Boston Store Place 814/833-6633 Millcreek Mall Service and Sales Center 5800 Peach Street 814/897-3408 www.UPMCHealthPlan.com
Innovative Plans and Increased Visibility Spur Health Plan’s Regional Growth UPMC Health Plan continues to be a leader in the Erie region by providing innovative, high-quality affordable health plans designed to meet the specific needs of both employer groups and individual members. In 2014 UPMC Health Plan teamed with the Manufacturer & Business Association (MBA) to help with Absolute Choice™, a private benefits marketplace. This partnership demonstrates that, together with MBA, UPMC Health Plan remains committed to supporting the communities it serves. Charles “Boo” Hagerty, With the introduction of Absolute Choice, MBA Vice President, Northern Tier Markets UPMC Health Plan member companies of all sizes now have the opportunity to offer their employees access to a suite of health benefits that meet their individual situations and needs. UPMC Health Plan was able to offer seven different benefit plans, each with plan design options that maximize choice and flexibility. Private benefits exchanges are a new and growing health benefits alternative because they let employers control costs and reduce administrative tasks while providing employees with a wide variety of benefit choices. In addition, all Absolute Choice plans meet the requirements of the Affordable Care Act (ACA). “UPMC Health Plan is happy to be part of Absolute Choice because it gives us a chance to be part of an innovative offering that can make a difference for businesses in northwest Pennsylvania,” said Charles “Boo” Hagerty, vice president of Northern Tier Markets for UPMC Health Plan. “These plans offer unique benefits you don’t find in other private marketplaces or public marketplaces.” Nationally, private benefits management programs for employees are an emerging trend in health insurance, according to Mercer, the global consulting firm. Mercer estimates that the number of employers who have either moved or have considered moving to a private benefits management program for their employees has tripled in the past year. UPMC Health Plan’s offerings in Absolute Choice provide employers with a greater choice of benefits — with less administrative responsibilities for the employer — than most so-called “cafeteria plans” that employers traditionally offer their employees. Absolute Choice is just one way UPMC Health Plan has increased its visibility in the Erie region over the past year. The opening of the UPMC Health Plan Connect Service and Sales Center at the Millcreek Mall in 2013 filled a need by creating a location convenient for both current members and people who wanted to learn more about UPMC Health Plan and also about the changing health insurance marketplace. For current members, the Connect Service and Sales Center offers a full complement of health insurance services, including member services. The center is also a place where people who are not members can come for information about the ACA and can purchase individual health plans. “The UPMC Health Plan Connect Service and Sales Center is one reason that UPMC Health Plan is positioned to become the carrier of choice in northwest Pennsylvania in the individual marketplace,” says Hagerty. “Another reason is that UPMC Health Plan offers a wide array of affordable plans, plus in-network access to UPMC Hamot, the region’s premier medical center, as well as the region’s only Level II trauma center.” UPMC Health Plan members also have access to UPMC Hamot Women’s Hospital. This facility houses the UPMC Hamot Health Connection, the region’s delivery center for preventive health services, health screenings, and community education. The Health Connection provides health and wellness education for men and women throughout their lives. In addition to the Connect center location, UPMC Health Plan maintains its main Erie office, which is located in downtown Erie’s historic Boston Store. May 2015 > www.mbabizmag.com > 5
CO M PA N Y P R O F I L E Building Relationships Successful business boils down to relationships. It’s not about who did what or who didn’t do this or that, or about backgrounds and prior accolades. Business is about relationships. To that end, Hoffman Industrial Company and its President and Owner Art Hammond would like to take the time to recognize the two paramount relationships for a successful business venture: customers and employees. To Our Customers – Current and Future Thank you for trusting Hoffman Industrial with the rigging, moving and installing of your Art Hammond, President and Owner machines and equipment. From a single machine to entire plant relocations, you have recognized that we have the right equipment and knowledgeable staff to get your job done safely, on time and on budget. Thank you for spending the time with our team on site reviewing the nuances of the job so we can provide an accurate quote that we can stand by and you can count on. Thank you for communicating with our team when the unexpected changes the most well laid plans. Our team understands the complexity of coordinating machinery delivery and install, plus the impact on production, and we pride ourselves as being flexible and responsive to meet your needs. Thank you for spreading the word and recommending our company to your friends and colleagues. There is no better compliment and it has allowed us to grow our business and foster new relationships, allowing us to service more than 100 different customers in 2014. To Employees – Always a Job Well Done Thank you to our staff. General Manager Dennis Apple for the countless hours traveling the tri-state area to be onsite analyzing the job and necessary requirement for success. Thank you for always being available to our customers and continuing to build the relationships for continued success in this service business. Our full-time crew: Ed Cass, Rich Tauber, Brian “Woody” Wood, Keith Mackowski, Leon Mackowski, Dave Madewell, Eric Snyder, Robby Ferguson, Dave Mays and Chuck Lamp. Thank you for your commitment and dedication to getting the job done and customer satisfaction. Thank you for putting safety first, as well as the care you provide handling the important assets of our customers. A special thanks goes to Ed Cass. As of March 1, 2015, Ed celebrated his 50th year with Hoffman Industrial Co. Fifty years on the job with one company is very rare in this day and age and quite remarkable. Ed has most likely seen, rigged and moved every type of machinery. Enjoy retirement and thank you for letting our team continue to tap into your unmatched knowledge of this industry. Building relationships is easy to say, hard to do. But in business, when you do, they last. Hoffman Industrial is professional riggers, movers and installers of industrial plants and equipment serving the tri-state area (Pennsylvania, New York and Ohio). Projects range from single machines and equipment to complete facility relocations. The company has an entire fleet of trucks, trailers, forklifts and equipment that is flexible enough to handle all your rigging needs. Let Hoffman do your heavy lifting.
Hoffman Industrial Company 1510 Irwin Drive Erie, PA 16505 814/452-2698 www.hoffmanindustrial.com
May 2015 > www.mbabizmag.com > 7
Our customers say it best... “ERIEBANK is a mix of extremely professional and friendly individuals, but what really makes them unique is their ability to deliver exceptional customer service, bank-wide. ERIEBANK President, Dave Zimmer really believes in us and helps us turn projects around in a timely manner, which is a necessity in our industry. Dave has been by our side when we needed him the most. Our relationship continues with ERIEBANK because of their customer service and loyal support.” — Rick Griffith Commercial Banking Division Main Office • 2035 Edinboro Road • Erie, PA 16509 Phone (814) 868-7523 • Fax (814) 868-7524
www.ERIEBANK.net
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TEAM RESULTS
Knox McLaughlin Gornall & Sennett, P.C. has been delivering sound legal advice for over 55 years. Our skilled team of more than 40 attorneys, 20 paralegals, and a dedicated support staff is driven by results. Whether you are the CEO of a large company or a young family developing an estate plan, we understand your needs and strive to fulfill them in a friendly, responsive and cost-effective manner. When you need a team, we pull together to help you come out ahead.
Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | Jamestown, NY | North East, PA 814-459-2800 | www.kmgslaw.com
• • • • • • • • • • • • • •
Bankruptcy & Creditors’ Rights Business & Tax Elder Law Environmental Law Estate Planning & Administration Governmental Practice Family Law Health Law Intellectual Property & Technology Labor & Employment Law Litigation Public Finance & Bonds Real Estate Workers’ Compensation
Since 1991, C.H. Reams & Associates has been dedicated to providing independent, objective and honest insurance services to clients across the nation. As one of the leading insurance and employee benefits administrators in Northwest Pennsylvania, the agency serves a very diverse clientele ranging from small, local employers to large, multistate corporations. C.H. Reams specializes in designing, implementing and maintaining customized employee benefit plans. In addition, they provide unique administrative services that enable customers to manage their benefit plan in the most cost-effective manner.
What Sets Us Apart? Unlike many other benefit administrators who simply offer one service for all groups, C.H. Reams & Associates understands that all companies have different wants and desires when building an effective benefits plan. Not only will C.H. Reams consult on plan design, implementation and renewal services, but they also provide billing and customized management reports. While other brokers help clients to buy these products for in-house use, C.H. Reams actually serves as an extension of their client’s human resources department.
It’s a service that goes above and beyond and has proven much more cost effective for the companies they serve. “Our systems are really what make this work,” explains owner Chuck Reams. “We’ve developed systems that make their lives easier. They aren’t just hiring a broker, they are also getting a benefits package administrator.”
Getting Compliant with the Affordable Care Act C.H. Reams & Associates has spent a considerable amount of time preparing for enforcement of the Affordable Care Act of 2010, set to take effect January 2014. With the marketplace now open for enrollment, C.H. Reams is available to help companies navigate the complexities of the plan, find the right solutions for their business, and help them stay compliant. C.H. Reams is already providing efficient administrative systems that can carry their clients into the future. “The complexity of understanding and being compliant of this health care act today is really a full-time job,” says Tom Reams. “The average company doesn’t have the ability to staff someone to do that research. We are not only saving them money, but saving them trouble down the road.”
Group Products • • • • • •
Fully Insured Health Plans Self-Funded Health Plans Dental Insurance Vision Insurance Life Insurance Disability Income Insurance • Long-Term Care Insurance C.H. Reams & Associates is pleased to offer samples of their consolidated billing statements or management reports. Contact the office for more information.
Association Services >
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“WQLN Public Media is very happy to be part of the Association’s energy program. Over the last four years, we have saved almost $40,000 on our monthly electric bills. The savings means more Big Bird, more Clifford, more Arthur, and more Lake Erie region kids performing better in school.” — Tom New, President and CEO, WQLN Public Media
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MBA EnergyAdvisors Provides Expanded Solutions The Manufacturer & Business Association’s (MBA) energy program has officially changed its name to EnergyAdvisors, A Member Service of MBA, to better reflect the services and support it provides to employers in need of energy advice. “The name change better reflects what we do,” explains EnergyAdvisors representative Chuck Jenkins. “We don’t sell energy. We provide energy solutions to our members, and we keep the process simple for them to use.” Companies of every size and type are seeking alternative energy suppliers and assistance in matching the right supplier with the best energy supply product at the right price. That’s why, on behalf of its members, the Manufacturer & Business Association (MBA) established its energy program in 2009 to assist them in shopping for energy, saving them millions of dollars in electric supply costs to date. The Association is presently offering electricity supply to its members in the Penelec, PPL, West Penn, Penn Power, PECO and MetED areas. Any employer can become a member of the MBA and take advantage of its energy savings program. Through the EnergyAdvisors program, the MBA can access an expanded list of pre-qualified suppliers on a company’s behalf, offering long-term fixed rate pricing, variable rate pricing indexed to the Day-Ahead Market, blended rate programs and Demand Response curtailment services for large demand energy users. “Whether you’re shopping for electric supply or want to learn how your company can be paid to curtail energy use on high demand days,” says Jenkins, “EnergyAdvisors is
here to help. The Association is here to assist with all of your energy needs, no matter how simple or complex they may be.”
Strategic Partnerships The creation of an alliance with BidURenergy, Inc. (BUE), Energy Curtailment Specialists, Inc. (ECS) and NRG Business Solutions has exponentially expanded the Association’s supplier base with more products and more advanced services to meet the needs of both the smallest and largest energy usage companies. NRG Business Solutions, a Fortune 500 and S&P 500 company, is America’s largest competitive power generator with plants capable of generating more than 53,000 megawatts. The company is also one of the largest providers of retail electricity with retail and thermal subsid- >
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Want to Know More About How EnergyAdvisors Can Help You? Contact EnergyAdvisors representative Chuck Jenkins at 814/833-3200 or toll free at 800/815-2660. You also can email cjenkins@mbausa.org or visit www.MBAenergyadvisors.com for more information. May 2015 > www.mbabizmag.com > 13
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iaries that serve over 2 million customers across 16 states. “What they bring to the table is the energy expertise and knowledge base that we need to serve our members efficiently,” says Jenkins. “This means all of their energy needs, not just buying electricity.” The addition of BidURenergy, Inc. (BUE) brings on board the premier energy supply consulting firm in North America. BUE provides an expanded list of suppliers bidding for business; long-term fixed rate pricing, variable rate pricing indexed to the Day-Ahead Market (with a fixed supplier adder) and blended programs; and advanced energy supply services. “Companies can buy their energy the way they want to and from who they want to now,” explains Jenkins. “That’s what BidURenergy does. Just like the name implies, we take MBA member electric accounts, send them to BidURenergy, and they send them out to the marketplace. Those suppliers come back and bid on your accounts based on what product you’re interested in.” Through BUE, there are numerous types of variable products from which to choose; and there are fixed products of various terms and everything in between.
What exactly is Demand Response and why is it needed? When demand for electricity is high and supply is short, power interruptions like blackouts and brownouts can sometimes result. Demand Response programs are designed to be both fiscally and environmentally responsible ways to respond to occasional and temporary peak demand periods. Demand Response offers significant financial incentives to businesses that volunteer and participate by temporarily reducing their electricity use when demand on the grid could outpace supply. “Demand Response means the grid operator pays you to not use energy on high demand days or periods of days during a year,” states Jenkins. Demand Response is ideal for companies with peak load capacity in excess of 150 kW that can cut back on their energy usage during rare electric emergencies by reducing lighting, A/C, motors, pumps, fans, elevators, using generators and moving production times around. “Our energy partners at ECS will help you identify the best reduction action plan for you,” says Jenkins. “The more reduction you commit to and perform, the more money you receive.”
Jenkins says the MBA’s energy program has generated millions of dollars in savings over the past six years; it has also saved employers valuable time.
According to Jenkins, one of the many advantages of the Demand Response program is that it costs nothing to enroll, and ECS will provide the interval meter at no cost. In fact, through Demand Response participation, ECS has paid customers more than $95 million since 2001.
“When it comes time to shopping for electricity, you may not have the time to shop among dozens and dozens of suppliers,” explains Jenkins. “We take that whole burden away from the member and help them shop for the product they want, and we educate them about the different products available to them. So it’s one-stop shopping for all their energy needs starting with supply.”
“Your company can add two streams of revenue for simply going green and helping maintain a safe and reliable grid,” adds Jenkins. “You get paid for your commitment to participate — being on standby for reducing electricity if needed — and for your actual reduced kWh during an event. You also will save on electricity when the prices are highest during these emergencies.”
Demand Response
Whether it is Demand Response or the way in which energy is purchased, EnergyAdvisors has the resources and expertise to help employers find the best energy solutions for their organization.
One of the most exciting partnerships that the MBA has entered into is its relationship with Energy Curtailment Specialists, Inc. (ECS). The company is recognized as an expert in energy consulting services and the most respected and reputable voice in Demand Response curtailment services.
“All you have to do is call,” says Jenkins. “We can sit down and discuss what your needs are and how EnergyAdvisors can help.” For more information, visit www.MBAenergyadvisors.com. May 2015 > www.mbabizmag.com > 15
Northwest Direct: 1-877-672-5678 â&#x20AC;¢ www.northwest.com 6XEMHFW WR FUHGLW DSSURYDO 6HH %DQN IRU GHWDLOV M 1RUWKZHVW ,QYHVWPHQW DQG 7UXVW 6HUYLFHV DOVR XVHV WKH VHUYLFH PDUNV ³1RUWKZHVW ,QYHVWPHQW 6HUYLFHV ´ ³1RUWKZHVW 5HWLUHPHQW 6HUYLFHV´ DQG ³1RUWKZHVW ,QVXUDQFH 6HUYLFHV´ WR SURYLGH LQYHVWPHQW DQG ZHDOWK PDQDJHPHQW DFWXDULDO DQG ¿GXFLDU\ VHUYLFHV DQG HPSOR\HH EHQH¿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¿OLDWHV RU VXEVLGLDULHV 1RUWKZHVW GRHV QRW SURYLGH OHJDO WD[ RU DFFRXQWLQJ DGYLFH ,QYHVWPHQWV 1RW )',& ,QVXUHG 1RW %DQN *XDUDQWHHG 0D\ /RVH 9DOXH ,QVXUDQFH 1RW )',& ,QVXUHG 1RW %DQN *XDUDQWHHG 0D\ /RVH 9DOXH 1RW D %DQN 'HSRVLW 1RW ,QVXUHG E\ $Q\ *RYHUQPHQW $JHQF\
EDUCATION. ENTREPRENEURSHIP. INNOVATION. W.L. Scheller, II, Ph.D., Dean, College of Engineering and Business; Maggie Horne, Director, Gannon University SBDC; and Jeff Parnell, Executive Director, Erie Technology Incubator bring nearly a century of experience to your business.
For over 30 years, the Gannon University Small Business Development Center (SBDC) has assisted aspiring entrepreneurs turn ideas into viable businesses, and provided reputable companies with information, resources, strategic mentoring and management training to maintain a competitive edge. The SBDC, Erie Technology Incubator and Gannon’s College of Engineering and Business are now conveniently located in the University’s new Center for Business Ingenuity at 900 State Street, providing endless opportunities for entrepreneurs.
College of Engineering and Business – Small Business Development Center – Erie Technology Incubator Integrating education, entrepreneurship and innovation. Good businesses keep pace with their competitors. Great businesses set the pace. With guidance from Gannon University’s SBDC, northwest Pennsylvania’s small businesses start, grow and prosper, thereby learning to set the pace. The professional consultants of SBDC’s team work confidentially with entrepreneurs in Mercer, Erie, Warren and Crawford counties in order to assist in maintaining a competitive edge within their businesses. Work alongside these experts for your business to develop new services and products, set goals and gather data relating to your industry, or find a new global market. The best part is that we offer many of these services at no cost. All we ask is that you bring an open mind and the desire to gain the extra edge.
Contact us today to find out how we can help your business. CALL | 814-871-7232
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Plastikos President Phil Katen talks to students about the Erie-based injection molding company.
Robert Gandley, a Girard High School student, participates in a job shadow at H&H Machined Products.
Paving the Way to Your New Career In today’s competitive business world, there is a growing disconnect between the skills employers need and the skills being cultivated in school. It’s a very real problem that requires a real solution, and that’s why employers and educators say that connecting students with career exploration opportunities earlier and often should play a more critical role. In Erie County, the career exploration initiative Career Street is helping Erie County youth in grades K-12 consider their career interests, explore various careers, and develop an understanding of what they must do to pursue and become successful in their desired careers. The community service program of the Erie County Vocational-Technical School Foundation brings employers, educators and students together through shared “career-focused experiences” that include presentations, career fairs, job shadows and tours. Since Career Street’s launch in February 2014, the program has 157 registrants, including 46 organizations, 71 businesses and 40 schools, with 3,000 students participating in the 171 “experiences” logged. “The whole idea is for students to get an idea or an opportunity to experience a variety of careers that they may be interested in,” explains Career Street Executive Director Jennifer Nygaard Pontzer. “This is for students whether they want to enter the work force when they graduate from high school or whether they want to go on for more education.” For example, if a student is interested in computers, computer information systems or information technology (IT), he or she has the opportunity to shadow someone in IT, or maybe a variety of people in IT that work for different companies. Just as important, students can discover what other employers and employment opportunities may exist. “For someone to drive by a building and know what’s going on inside there, there’s a sense of confidence in that information. If you know that, in that building, there are manufacturers. There are laborers. There are engineers. There are physicists. There is an HR department and maybe a nurse. They realize there’s a lot more going on in that building than what the sign would imply,” Pontzer says. “To be able to give students the confidence to explore, will keep their minds open and bright. Students can be empowered by the knowledge of Erie’s impact on the economy — locally, nationally and globally — and possibly boost their hometown pride as well.
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“There’s a lot of really great careers right here in Erie,” says Pontzer. “We make good things that stay in our community, but they also go out to the nation. They go out to the world. Some of them go out into space. To have students have an opportunity to learn about these things, I think is going to give them some excitement about participating in the development or the sales of those.” “If they see what’s happening in Erie,” she says, “they can turn into productive citizens in Erie — staying here, voting here and being a part of our local economy.”
How it Works To participate in Career Street, employers only have to take a few minutes to register at www.careerstreeterie.org. After they register, they then create “experiences” — presentations, career fairs, job shadows and tours. Educators can then see what experiences are offered and identify what would be a good match for their students or classroom. The website is a common portal that any registrant can use. “Once you can identify what the experience is that you want, it’s one click,” says Pontzer. “It goes immediately to the contact person.” Career Street is unique because it is designed specifically for Erie County with the students and employers of Erie County in mind. “If there is a business on the east side of Erie that is interested in hosting students for tours, maybe if they’re registered on the Career Street website, more of the schools, more of the contacts within the schools, will become aware of it,” notes Pontzer. “They can have a connection with the schools and with their future work force.” Over the past year, Micro Mold & Plastikos have hosted more than a dozen student tours. “We view the Career Street program as a great resource to introduce the next generation to the vibrant and growing high-tech world of American manufacturing,” states Ryan Katen, president and general manager of Micro Mold. “Our hope is that the Career Street experience opens the eyes of some of our best and brightest local students to the excellent, well-paying career opportunities that advanced manufacturing affords. We hope the students enjoyed their experience as much as we enjoyed sharing the morning with them, and in the future, maybe one or two of them will return to Plastikos as a member of our team.”
Knox McLaughlin Gornall & Sennett, P.C., is also proud to support Career Street in its efforts to prepare the next generation. The law firm conducted three office tours, offering high school students a glimpse into what it takes to run a law firm, how the office is structured and the various career options in the legal field. The firm’s marketing director, chief administrative officer and three attorneys spoke to each group, discussing job duties and advice for those interested in a legal career. “The benefits of Career Street include community support, involvement and goodwill,” explains Sarah Holland, marketing director at the Knox Law Firm. “Our attorneys and staff are happy to share our experiences. Helping the next generation will only strengthen our region in the future.” Educators are equally impressed by what they’ve seen from the career exploration program. “Northwestern High School has been utilizing Career Street for the first time this year. It has been a great benefit to the district, especially for our students, as we have been able to link specific student career interests to local businesses around the area,” says high school counselor Joe Nagle. “Be it a job shadow experience, classroom speaker or small group tour, Career Street makes it easy to locate businesses in our area and to link our students to these real life experiences.” According to Girard business teacher Toni Spinelli, “Career Street is a tremendous benefit for Girard High School. Our juniors are required to complete a ‘Career Project’ for graduation. Career Street makes it possible to bring a variety of presenters to our students, especially the ones unable to job shadow. They are exposed to careers they never knew existed. We are very grateful for the opportunity to have this service available to us.” Students, including Erica Senyo, Girard High School Class of 2016, speak highly of their Career Street experience. “Every speaker has brought something different to the table,” Senyo says. “They have opened our minds to many careers and have shown us there is something out there for everyone.”
The Road Ahead The ECVTS Foundation established an advisory board of community leaders to ensure Career Street meets the needs of students and businesses alike.
Students and educators from Roosevelt Middle School headed to Plastikos for a tour of the local manufacturing company.
The program’s progress is also being measured through the 8th Grade Career Readiness Survey, created with Erie Together and posted on the Career Street website each spring. Erie Vital Signs is interested in the impact that career exploration can have on the economy, as well. Erie Vital Signs is a leadership initiative of the Erie Community Foundation that tracks indicators that measure the county’s well-being. “We do try to stay very closely aligned with Erie Vital Signs with increasing employment and increasing graduation rates,” says Pontzer.
Brenda Snyder from Mercyhurst University North East presents on future nursing careers to students at Girard High School.
Eighth grade is a key year for career exploration because in the spring eighthgrade students identify what their schedules are going to be in high school. For them to have career exposure before they have to make those decisions, gives them the help they need. “We’re not trying to have students identify what they want to be when they grow up at the eighth-grade level,” says Pontzer. “We’re helping them identify their interests, their career interests.” Career Street is also a platform for educators and employers to interact and increase the dialogue about better preparing students for the work force. The program hosts networking events and community tours in which educators get a chance to tour local businesses. Pontzer is planning more events to develop more relationships between educators and employers.
Facility tours are one of the four experiences that Career Street offers, as well as career fairs, presentations and job shadowing.
“Career Street is very purposeful about creating these environments where they can interact together,” says Pontzer. “Through Career Street, we can begin to ensure that students understand what it takes to be successful in their desired careers and that businesses will ultimately have access to talented, qualified workers.” For more information, visit www.careerstreeterie.org.
About: Career Street is a countywide career exploration initiative and a community service program of the Erie County Vocational-Technical School Foundation. Funding: The program is supported by a $225,000 grant from The Erie Community Foundation, as well as support from the Workforce Investment Board and United Way of Erie County. Engagement: Career Street presently has 157 registrants, including 46 organizations, 71 businesses and 40 schools. More business and nonprofit registrants are encouraged to register. Contact: Executive Director Jennifer Nygaard Pontzer Phone: 814/464-8601 Website: www.careerstreeterie.org
May 2015 > www.mbabizmag.com > 19
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0DNH <RXU 0DUN Permanent surface marking, etching and engraving is now available at Fairview Manufacturing. Utilizing precision laser technology, etching can be done on a variety of materials ranging from steel, bronze and aluminum to plastic, silicone and brass. Computer controlled optics enable us to etch on products and components in any variation of flat, curved and round surfaces.
Common uses for laser marking: • Company branding • Product identification • Tools and parts • Equipment labels • Bar codes • Serialization • ID tags
In addition to laser etching, Fairview Manufacturing also specializes in CNC turning/milling, manual turning/milling, contract machining, custom sawing, multi-spindle drilling, secondary operations and prototype services.
Fairview Manufacturing, family-owned and operated, has been serving the aerospace, automotive, food, oil and gas industries as well as hydraulic/pneumatic systems and metering/measurement technologies, since 1961. Contact us today to discuss your project. 2505 Avonia Road / Fairview, PA 16415 814.474.5581 / sales@fairviewmfg.com www.fairviewmfg.com
110th Annual Event >
T. Boone Pickens, chairman of BP Capital Management, is an American businessman and energy activist who, in 2008, unveiled The Pickens Plan â&#x20AC;&#x201D; a blueprint to reduce OPEC oil dependence immediately by harnessing domestic energy sources.
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Copyright @ Todd Korol/Reuters/Corbis
A CONVERSATION WITH
T. BOONE PI C K E N S
How the Life and Times of the Legendary Oilman, Activist Spurred His Quest for America’s Energy Independence
A legendary oil and gas entrepreneur who has become the nation’s most effective energy expert, T. Boone Pickens, billionaire energy mogul and chairman of the private investment firm BP Capital Management, is on a mission to enhance U.S. energy policies to lessen the nation’s dependence on OPEC oil — a reliance that he views as the greatest threat to America’s national security and economic well-being. Cited for his leadership in developing The Pickens Plan for America’s energy future, the entrepreneur and visionary has long been an advocate for harnessing domestic alternatives and developing even greater new technologies. He has not been shy in predicting oil and gas prices, sources say, and has been uncannily accurate. As a result, he is a frequent guest on some of the nation’s most-watched business programs and
has been coined the “Oracle of Oil” by CNBC. In an exclusive interview, Pickens will sit down with moderator John Hofmeister, founder and CEO of Citizens for Affordable Energy and former president of Shell Oil Company, during the Association’s 110th Annual Event on May 20 at Erie Insurance Arena, to share his candid, no-holds barred approach to solving America’s energy crisis. “For me, the primary case for alternative energy is to help America achieve its national energy security,” he has said in his 2008 autobiography The First Billion Is the Hardest: Reflections on a Life of Comebacks and America’s Energy Future. “As long as we are dependent on other countries for oil, the very lifeblood of our nation, our security is at risk.” >
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%RRQHLVP ´$ SODQ ZLWKRXW DFWLRQ LV QRW D SODQ ,W·V D VSHHFK µ Truly an American success story, Pickens grew from humble beginnings in Depression-era Holdenville, Oklahoma, to be one of the nation’s most successful businessmen, gracing the cover of TIME, FORTUNE and virtually every other major business publication in America. A folk hero in global business for his tenacity in the rough-and-tumble world of mergers and acquisitions, his career has staggering breadth. He first built and led one of the largest independent natural gas and oil companies. Then, at a time in his life
Meet Moderator John Hofmeister John Hofmeister, founder and CEO of Citizens for Affordable Energy and former president of Shell Oil Company, is a leader with a unique perspective on not only the oil industry, but on the nation’s energy situation as a whole. He is a highly sought after presenter, pundit, writer, energy and leadership expert, and will be the moderator for “A Conversation With T. Boone Pickens” at the Manufacturer & Business Association’s 110th Annual Event on May 20 in Erie. In addition to Hofmeister’s book, Why We Hate the Oil Companies: Straight Talk from an Energy Insider, he has written many op-eds and scores of articles. He has appeared on Charlie Rose, Glenn Beck, Neil Cavuto, Meet the Press, Fox Business Network and more. He is also a regular contributor on CNBC’s SquawkBox. He has spoken at a number of universities, including Harvard, Stanford, MIT, UC Berkeley, UCLA and Arizona, to name a few. As president of Shell Oil, Hofmeister was known for being a straight shooter, willing to challenge his peers throughout the industry. Now, he’s a man on a mission, the founder of Citizens for Affordable Energy, a nonprofit association, crisscrossing the country in a grassroots campaign to change
when many of his peers retired to the golf course, he reinvented himself by establishing one of the nation’s most successful energy-oriented investment funds. The much-honored Pickens chronicles the lessons he learned during the journey in The First Billion Is the Hardest. Ranked by Forbes as one of the world’s richest people, Pickens also is an innovative, committed philanthropist who has donated nearly $1 billion to charity. His impact on American culture reflects >
the way we look at energy in this country. His purpose is “To educate citizens and government officials about pragmatic, non-partisan affordable energy solutions, environmental protection, energy alternatives, efficiency, infrastructure, public policy, competitiveness, social cohesion and quality of life.” While pundits proffer false new promises of green energy independence, or flatly deny the existence of a problem, Hofmeister offers an insider’s view of what’s behind the energy companies’ posturing, and how. Hofmeister serves as the chairman of the National Urban League and is a member of the U.S. Department of Energy’s Hydrogen and Fuel Cell Technical Advisory Committee. He serves as non-executive director of the Hunting PLC, London, UK, Lufkin Industries Inc., CAMAC Energy, Inc., and the Sodexo North America Business Advisory Board. He is senior adviser to two energy start-ups: Liberty Power of Fort Lauderdale, Florida and NewEarth Technologies of Seattle, Washington. Hofmeister also serves on the boards of the Foreign Policy Association, Strategic Partners, LLC, the Gas Technology Institute and the Center for Houston’s Future. Hofmeister is a Fellow of the National Academy of Human Resources. He also is a past chairman and serves as a director of the Greater Houston Partnership. Hofmeister is active in education serving on Advisory Boards at the University of Houston and the University of North Texas. He is also a director of the Texas Education Reform Committee.
May 2015 > www.mbabizmag.com > 25
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his many interests and passions, including an unyielding belief in the entrepreneurial spirit, leadership in corporate fitness, the need for alternative fuel development and prudent stewardship of American lands. “You’re never done until you’re done,” Pickens, now 86, said in his New York Times bestseller. “That’s the only way to approach life and business… If I’m not here when the project is finished, I’ll be here when it’s a long way down the track.”
Life and Times Oil and gas has been in Thomas Boone Pickens Jr.’s blood since birth. He was born on May 22, 1928, in Holdenville, Oklahoma, the only child of Grace and Thomas Boone Pickens. His father was an oil company lawyer, while his mother ran the Office of Price Administration (OPA) for three Oklahoma counties during World War II. The OPA was responsible for rationing gas and other goods that were in short supply during the war. His family instilled Pickens with what he describes as old-fashioned values, encouraging him to work hard and use his time and money wisely — advice that would pay off in his investments later on. “My parents were hardworking, thrifty, honest and self-sufficient,” Pickens wrote in The First Billion is the Hardest. “They came from an era when a job was viewed as a privilege, not a right.” In 1944, the family moved to Amarillo, Texas, where Pickens’ father took a job in the land acquisitions division of Phillips Petroleum Company. It was there that Pickens earned a spot on the high school basketball team and a small scholarship to play college ball. His basketball career at Texas A&M University only lasted a year; he ended up transferring to Oklahoma A&M at Stillwater (now Oklahoma State University),
majoring in geology at his father’s urging and joined the fraternity Sigma Alpha Epsilon. In 1949, Pickens married and the couple had their first child. At the age of 22, Pickens graduated college and took a job as a geologist with Phillips Petroleum in Bartlesville, Oklahoma in 1951. Within three years, Pickens quit his corporate job and decided to work independently as a wildcat well driller — his first taste of being an entrepreneur. By 1956, he invested $2,500 and, with two partners, formed Petroleum Exploration, Inc. (PEI), the company that would eventually become known as Mesa Petroleum. “Except for a few members of my family, no one gave me a prayer of succeeding. My single-minded focus gave me an edge…” Pickens said of PEI, in The First Billion Is The Hardest. “In fact I always think I have an edge, but I love to be the underdog.”
Pickens’ Run at Mesa Financial World described PEI’s early years as “a series of successful ventures in which (Pickens) demonstrated shrewd financial instincts and a creative approach to raising capital.” The company went public in 1964 and was renamed Mesa Petroleum. Pickens believed Mesa was off to a good start with a $435,310 profit on revenue of about $1.5 million its first year. In 1969, Mesa merged with Hugoton Production Company, sources say, giving the company the leverage it needed to expand exploration and >
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production operations. Pickens considered the acquisition the most important deal Mesa ever made. The company had both the reserves and the balance sheet to play in what Pickens described as â&#x20AC;&#x153;the big league.â&#x20AC;? By 1979, Pickens formed the first large, publicly traded oil royalty trust â&#x20AC;&#x201D; Mesa Royalty Trust. The trust would represent 90 percent ownership in some of Mesaâ&#x20AC;&#x2122;s oil and gas properties, and the cash flow from production would be distributed to shareholders. â&#x20AC;&#x153;It was obvious that management was doing a good job for the owners,â&#x20AC;? Pickens said in his bestselling book. â&#x20AC;&#x153;It was some time before anyone followed our lead.â&#x20AC;? By 1981, experts say, Mesa was a major independent oil company with assets of more than $2 billion. Yet oversupplies of oil caused prices to drop and Pickens decided to look for new opportunities. In fact, Pickens launched a series of attempts to take over other, often larger, oil companies. None of the acquisitions succeeded, but Pickensâ&#x20AC;&#x2122; strategies drove up the prices of his targetsâ&#x20AC;&#x2122; stocks, netting him and other investors millions of dollars. On Wall Street, and soon Main Street, Pickens became known as a corporate raider and was often called a â&#x20AC;&#x153;greenmailer,â&#x20AC;? an investor who threatens to take over a company by buying large blocks of stock, then selling the stock back for huge profits. Pickens, however, considered himself to be a champion for stockholders, targeting business he saw as being mismanaged by executives who held little stock in their own companies. His first major takeover attempt was the considerably larger Cities Service. In early 1981, sources say, Pickens owned 4 million shares of Cities Service stock, representing about 5 percent of the total. When Cities Serviceâ&#x20AC;&#x2122;s management refused his attempt at
a merger, he sought partners for a hostile takeover. What followed was an 18-month battle between the two oil companies. Before Mesa could make its tender offer, Cities Service made an offer for Mesa, making Pickens the underdog. Eventually, both companiesâ&#x20AC;&#x2122; offers fell through but Pickens learned â&#x20AC;&#x201C; and earned â&#x20AC;&#x201C; a lot from the deal. â&#x20AC;&#x153;Even though we hadnâ&#x20AC;&#x2122;t succeeded in taking over Cities, the attempt had proved that I was right in my belief that shaking up Big Oil could be profitable,â&#x20AC;? Pickens noted in his autobiography. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;d stumbled our way through and picked up pocket change of $31 million.â&#x20AC;?
Gulf Oil In 1983, biographers say Pickens embarked on the most highly publicized deal of his career when he began acquiring stock in Gulf Oil. Gulf was the sixth largest oil company in America at the time with annual revenues of $30 billion. The companyâ&#x20AC;&#x2122;s oil reserves were down, and its stock was undervalued on top of already low oil prices. Pickens targeted Gulf Oil for â&#x20AC;&#x153;restructuring.â&#x20AC;? He formed the Gulf Investment Group (GIG), which acquired 11 percent of Gulf stock. As Gulfâ&#x20AC;&#x2122;s largest stockholder, sources say, GIG asked management to place part of its domestic oil and gas-producing properties in a royalty trust, standing to gain $219 million in profit on the plan. Management refused GIGâ&#x20AC;&#x2122;s request and initiated a proxy fight, in which stockholders were asked to vote for or against managementâ&#x20AC;&#x2122;s decision. The battle between Pickens â&#x20AC;&#x201D; who was billed a champion for company shareholders, includ- >
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ing retirees and pension holders â&#x20AC;&#x201D; and Gulf Oil made Pickensâ&#x20AC;&#x2122; name synonymous with â&#x20AC;&#x153;corporate takeover.â&#x20AC;? â&#x20AC;&#x153;Takeover mania gripped America,â&#x20AC;? Pickens said in his autobiography. â&#x20AC;&#x153;New insider terminology became part of the 1980s lexicon.â&#x20AC;? The federal government reacted to the mergermania when Congress attempted to pass a bill that would curb oil company mergers. Pickens lobbied against the bill, however, claiming it was not the governmentâ&#x20AC;&#x2122;s responsibility to protect companies with weak management. He also believed that the oil industry should be allowed to restructure itself. The bill was defeated. Pickens subsequently battled other oil companies, reaping millions for Mesa. Subsequently, in 1986, Pickens launched the United Stockholdersâ&#x20AC;&#x2122; Association (USA), a nonprofit group dedicated to defending shareholdersâ&#x20AC;&#x2122; rights. Within three months, the group had amassed 3,000 members. â&#x20AC;&#x153;By 1993, we had done the job weâ&#x20AC;&#x2122;d set out to do: corporate culture had changed so that shareholder concerns were now more integrated into business decisions and planning,â&#x20AC;? Pickens wrote in The First Billion is The Hardest. â&#x20AC;&#x153;We decided to shut down USA. It may be the only successful lobbying group to ever go out of business.â&#x20AC;?
%RRQHLVP ´,I \RX DUH JRLQJ WR UXQ ZLWK WKH ELJ GRJV \RX KDYH WR JHW RXW IURP XQGHU WKH SRUFK Âľ According to sources, he holds a 46-percent interest in the company, which runs two hedge funds, Capital Commodity and Capital Equity, both of which invest primarily in traditional energy companies such as oil, natural gas and nuclear power corporations. Sources say, in 2006, Pickens earned $990 million from his equity in the two funds and $120 million from his share of the 20 percent fees applied to fund profits. In 2007, he earned $2.7 billion, as BP Capital Equity Fund grew by 24 percent after fees, and the then $590 million Capital Commodity fund grew 40 percent, thanks to, among others, large positions in the stocks of Suncor Energy, ExxonMobil and Occidental Petroleum. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t invest in hunches. We are not day traders,â&#x20AC;? Pickens has said in The First Billion is the Hardest. â&#x20AC;&#x153;Our investments are based on fundamentals: our analysis of the forces of supply and demand.â&#x20AC;? â&#x20AC;&#x153;To make the big money,â&#x20AC;? he continued. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve found itâ&#x20AC;&#x2122;s best to take a long-term view, stay focused, and not get spooked by the temporary fluctuations in the market. When I have the odds in my favor, I put my money up and keep it up. If the fundamentals change, I get the hell out of there.â&#x20AC;?
A New Era
Energy Activist
Pickens era as the head of Mesa came to an end when he sold the company to Richard Rainwater in 1996. Mesa eventually merged with Parker & Parsley Petroleum in 1997 to form Pioneer Natural Resources.
Pickens who made much of his fortune in oil drilling has since become the countryâ&#x20AC;&#x2122;s leading energy expert, traveling the country championing wind power and other alternative energy forms.
Pickens, however, wasnâ&#x20AC;&#x2122;t ready to retire. In 1997, he founded the private investment firm BP Capital Management (then called BP Energy Fund), where he still serves as chairman.
It was in the midst of the 2008 presidential race that Pickens first unveiled a major energy policy proposal called The Pickens Plan. The plan promotes a radical reduction in the United Statesâ&#x20AC;&#x2122; dependency upon > May 2015 > www.mbabizmag.com > 31
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foreign energy, particularly oil provided by nations in the OPEC cartel. Although the plan calls for introduction of various alternatives to oil, including wind and solar, its major component is the conversion of the nationâ&#x20AC;&#x2122;s commercial transport sector away from OPEC diesel to natural gas. According to the plan, â&#x20AC;&#x153;by aggressively increasing the use of natural gas in transportation by shifting Americaâ&#x20AC;&#x2122;s heavy truck fleets from imported gasoline and diesel to domestic natural gas would significantly and immediately lower our dependence on OPEC oil, and move the United States closer to the goal of importing zero oil from the Middle East within 10 years.â&#x20AC;? In fact, Clean Energy Fuels, founded by Pickens and Andrew Littlefair in 1997 already builds and operates compressed and liquefied natural-gas fueling stations, fueling more than 30,000 vehicles. Customers include municipal transportation agencies and companies such as United Parcel Service Inc. The company also has branched out to producing renewable natural gas out of methane from landfills. According to www.pickensplan.com, â&#x20AC;&#x153;by investing in alternative energies while utilizing natural gas
Pillars of The Pickens Plan According to the www.pickensplan.com website, there are several pillars to The Pickens Plan: â&#x20AC;˘ Use Americaâ&#x20AC;&#x2122;s abundant natural gas to replace imported oil as a principal transportation fuel for fleets and heavy-duty trucks; â&#x20AC;˘ Build a 21st century backbone electrical transmission grid; â&#x20AC;˘ Develop renewable energy sources, including as wind and solar power; and, â&#x20AC;˘ Increase energy efficiency in home and commercial buildings with technology improvements and upgrading insulation.
%RRQHLVP ´%H ZLOOLQJ WR PDNH GHFLVLRQV 7KDW¡V WKH PRVW LPSRUWDQW TXDOLW\ LQ D JRRG OHDGHU 'RQ¡W IDOO YLFWLP WR ZKDW , FDOO WKH ÂśUHDG\ DLP DLP DLP DLP¡ V\QGURPH <RX PXVW EH ZLOOLQJ WR Ă&#x20AC;UH Âľ for transportation and energy generation, America can decrease its dependence on OPEC oil, develop the cutting-edge know-how to make wind and solar technology viable, and keep more money at home to pay for the whole thing.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s time to declare war on a crisis that threatens the very security of America by sending close to $1 trillion overseas each year, enriching our enemies, downgrading our global status, and pushing our already fragile financial condition toward almost certain meltdown,â&#x20AC;? Pickens said in The First Billion is the Hardest. â&#x20AC;&#x153;We have to act, not just create policy. Decisions need to be made now. When it comes to energy we are at war.â&#x20AC;? To date, more than 2 million Americans have joined the Pickens Plan Army. â&#x20AC;&#x153;Americaâ&#x20AC;&#x2122;s dependence on OPEC oil is a critical concern,â&#x20AC;? states www.pickensplan.com, â&#x20AC;&#x153;but it cannot be solved in isolation. Americans must begin to see how energy works as a whole â&#x20AC;&#x201D; and that begins by considering what energy resources and alternatives we have, and taking a long-term view of how we will fuel our world in the next 10 to 20 years and beyond.â&#x20AC;? For more information, visit www.pickensplan.com.
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The Erie Area’s Leading Resource for Aging in Place Dianne and Bob Cunningham have owned Home Instead Senior Care in Erie since 2009, although the agency has been operating in the area since 2002.
Home Instead Senior Care is now located at 3816 West Lake Road. The newly renovated building features more office space and a state-of-the-art training and conference area.
Home Instead Senior Care’s move to its newly renovated 5,000-square-foot headquarters at 3816 West Lake Road in Erie, Pennsylvania has been the realization of a dream for agency owners Dianne and Bob Cunningham. For the past six years, the couple has grown the non-medical senior care agency into one of the area’s leading resources for safe, reliable in-home care services for older adults, including those in nursing care facilities. The relocation to the new Erie office gives Home Instead more room for its 12 office staff and its growing team of nearly 300 CAREGivers to have a dedicated space for training and for families to have a go-to educational resource for aging in place. The Cunninghams say the move also makes a statement about Home Instead’s investment in the Erie area. “We wanted to buy a facility, not just for the space, but because we wanted to show the community that we’re here, and that we’re here for the long run,” explains Chief Executive Officer Bob Cunningham. With the graying of America and, more specifically, the increasing number of seniors in Pennsylvania, Home Instead is certainly positively positioned for the future. This expected demand for home-care services complements Home Instead’s unprecedented success. The agency has reported record-breaking 300-percent growth since the Cunninghams took over the business in late 2009. In 2014, Home Instead’s Erie office hired 129 employees; in 2013, an additional 109, and in 2015, the agency plans to add 100 more employees. “Our retention rate is excellent for the industry,” states President Dianne Cunningham. “In fact, we’ve had other owners calling us saying, ‘How are you making that happen?’ ” In April 2014, the Erie agency’s growth and impact was recognized nationally during the International Home Instead Senior Care 20th Anniversary Celebration in Omaha, Nebraska, and Bob and Dianne were invited to be keynote speakers. “We were asked to talk to the owners about how we have grown and what we have done to grow, and what we have done to be involved in the community,” explains
38 < www.mbabizmag.com < May 2015
Bob. “It was quite a proud moment, as we received positive feedback from other owners in regards to our growth and community involvement.”
At Home Instead, It’s Personal Home Instead Senior Care is known for its tagline, “To us, it’s personal,” and the Cunningham’s Erie office truly leads by example. The husband-and-wife team and their employees are passionate about what they do, but also what Home Instead represents — support to those giving care, dignity for those receiving care and a better quality of life for both seniors and their families. “Back in 2009, Bob and I were shaking the trees realizing that the community was not prepared to meet the needs of seniors,” states Dianne. “Giving back to the community is huge for us, not just in terms of education, but informing people about what’s out there. We’re here making sure that families feel like they have a resource to go to in order to get the help that they need.” Home Instead enlisted Mary Ann Frew, a well-respected nurse/educator to become the agency’s training instructor. Her role includes providing specialized training for Alzheimer’s and dementia care, free workshops on hospice, and presenting programs focusing on how individuals, going through the aging process with their loved ones, can avoid hospitalization. The agency’s advocacy efforts also have expanded with the hiring of veteran broadcast journalist Scott Bremner. As director of Marketing and Development, Bremner is tasked with not only promoting Home Instead’s services throughout the community, but also serving as a spokesperson in the community regarding senior care issues. “My wife and I both lost our dads within a year of each other, and one of them had a stroke and needed to be cared for, and the other one stayed at home,” explains Bremner of the decision to join the agency. “I saw the struggles that my mom went through if he would fall, and trying to get help and get somebody in there. “If we would have had a Home Instead CAREGiver, it would have meant so much to just know somebody could spend time with him, talk to him and help him with his personal care needs,” he adds.
Compassionate CAREGivers One of the key differences with Home Instead versus other agencies is the due diligence that the agency puts forth to match clients with the right CAREGivers so that each experience is overwhelmingly positive. Services include everything from personal services such as grooming and bathing, and meal preparation, to companionship services and medication reminders. Natalie Ferraro, a Home Instead CAREGiver in Erie for nearly 12 years, says she was interested in working for the agency after past experience working in a nursing facility. She now is able to spend more time with clients one-on-one and speaks highly of her Home Instead CAREGiver experience. “I think it’s a wonderful company. It’s a wonderful concept, and Bob and Dianne have been wonderful to work for, and going out and serving seniors,” Ferraro says. “Not everyone is meant to be a CAREGiver. I have told many people about working at Home Instead, but you really have to love seniors and want to do this.” To ensure the best care and attention possible, Home Instead has implemented continuous mandatory CAREGiver training and hands-on training specifically for clients who may need assistance with equipment such as a Hoyer Lift, wheelchair or walker. The Erie agency also regularly recognizes the dedication of its CAREGivers with CAREGiver of the Month, CAREGiver of the Quarter and CAREGiver of the Year awards and an annual CAREGiver Appreciation Dinner. Dianne says, “Our whole mentality is that happy CAREGivers lead to happy clients. CAREGivers who feel like they are recognized for the important work that they do, that they have the tools to do it, that they’re valued, and that they have a voice, translates into happy families and happy clients.”
Employee Benefit for Area Businesses Home Instead Senior Care also sees its services as a benefit that other local employers can offer to their employees, regularly working with companies to provide reduced rates to participating employees so that their loved one can receive care at home. Another benefit offered is the Return Home Program in which CAREGivers assist seniors with the discharge process from hospital to home — getting medications and transportation — when family members are unavailable. “The stress on employers and their employees to be leaving work to take care of Mom can be very troublesome,” says Dianne. “We’re helping to keep people on the job; giving them peace of mind and helping employers know that their staff members aren’t going to be continually absent.”
Home Instead Senior Care’s professional staff and CAREGivers have helped grow the non-medical senior care agency into one of the area’s leading resources for safe, reliable in-home care services for older adults.
Sarah Nara understands those demands. When Nara’s grandmother Charlene was rushed to the hospital after a bad fall, her family discovered that she also was experiencing the onset of dementia. After being discharged for short-term rehabilitation at a local nursing home, she eventually moved to another nursing facility. Once there, Nara says her grandmother’s dementia dramatically worsened and it was a bad situation. Nara came across a TV commercial for Home Instead Senior Care and reached out to Dianne. Nara says her grandmother — and her family — are benefiting from Home Instead services. “I see a total difference in her,” Nara says. “She’s thriving. She’s happy. She loves her home.” “The Home Instead staff knows what they’re doing. They’ve offered us advice; they’ve offered us counseling,” she continues. “They do these sessions at the office where they’ll help you understand different diseases that affect the elderly, especially with Alzheimer’s and dementia, and how you can work with your loved ones so that you don’t feel helpless.”
Advocacy Through Home Instead, the Cunninghams have used their knowledge and experience to impact the community for the better. The couple joined forces with the Alzheimer’s Association of Northwestern Pennsylvania as Advisory Board members, helping to raise tens of thousands of dollars. They’ve also taken the lead in talking to local legislators about the need for funding for both Alzheimer’s and dementia. Home Instead is also a supporter of the Hilarity for Charity program supported by comedian and actor Seth Rogen. Through the Alzheimer’s and Dementia Care Relief Program, one qualified applicant in northwest Pennsylvania is receiving free in-home care services through Home Instead Senior Care. Other families in the area needing care may apply at www.helpforalzheimersfamilies.com. The Cunninghams are firm believers in philanthropy and giving back where they can. “What goes around comes around,” says Dianne. “It’s about being a part of this community. We support the community, and we fully believe that the community will support us.” For more information, visit www.homeinstead.com.
Veteran broadcast journalist Scott Bremner recently joined the agency’s staff as director of Marketing and Development.
Home Instead Senior Care recognizes CAREGivers for the exceptional work they do through its CAREGiver of the Month, Quarter and CAREGiver of the Year awards.
About: Home Instead Senior Care has been independently owned by Bob and Dianne Cunningham since 2009. The company was originally founded in Erie in 2002. Established by Paul and Lori Hogan in Omaha, Nebraska in 1994, Home Instead began franchising in 1995. Services: The agency provides non-medical care to area residents, in particular to the senior community. The care is provided in a client’s home — wherever home is, including area nursing homes. Services provided include companionship, meal preparation, light housekeeping, errands/transportation and personal care. Erie’s Home Instead specializes in Alzheimer’s and dementia care. Headquarters: The newly renovated Home Instead Senior Care office in Erie is located at the former Burton Funeral Home at 3816 West Lake Road. Phone: 814/464-9200 Website: www.homeinstead.com
May 2015 > www.mbabizmag.com > 39
BUY LOW, SELL LOW.
In business, thatâ&#x20AC;&#x2122;s not a common strategy. But with natural gas costs being at one of the lowest points in recent history, we see it less as a strategy, and more as a responsibility. As one of the largest resellers of natural gas in this region, NFR is currently purchasing natural gas at uncommonly low rates. And we're passing along uncommonly low rates to our customers. Is your supplier doing the same? Contact Shelly Spacht at 814-825-1893, or sspacht@NFRinc.com, and see how low your natural gas rates can be.
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You Get What You Pay For For centuries, men have uttered such catchphrases as “Don’t count your chickens before they are hatched,” or “Necessity is the mother of invention.” These phrases, and many others like them, are profound nuggets of truth. They speak volumes in just a few words. Another equally profound phrase, uttered in the 15th century by Gabriel Bell, is: “You get what you pay for!” In other words, price reflects quality and “You got your money’s worth!” Whether you’re speaking about clothing, automobiles, tools, or rigging and crane Gavin Hedderick, service — it makes no difference — quality requires President and Owner a higher level of investment, thus often resulting in a higher price. The adage remains true: “You get what you pay for!” For 58 years, the name ROG’S, INC. has been synonymous with quality rigging and crane service in the tri-state area. It is the area’s premier rigging company. To be the area’s largest and most fully equipped rigging company requires a significant financial investment. For example, to have and to hold a highly skilled, OSHA-certified work force of riggers and crane operators, experienced in all aspects of machinery moving, requires a substantial financial investment. To purchase and maintain late-model quality equipment, such as cranes and specialized forklifts, tractors and trailers, which facilitate the safe and efficient moving of the most delicate and expensive industrial machinery, requires a substantial financial investment. To carry the appropriate liability insurance for rigging and crane service requires a substantial financial investment. ROG’S, INC. continues to make that investment, constantly updating and expanding its equipment. This assures that its customers receive the safest and highest quality of service, with the least amount of interruption to their operation, all the while keeping the price as reasonable as possible. ROG’S, INC. may not always be the cheapest rigger, but the company vows to be the best, choosing never to compromise quality for price. Remember, “You get what you pay for!” ROG’S, INC. has the area’s only 80,000-pound “Rigger Special” forklift. Being an innovator and not a follower, ROG’S was the first to purchase a specialized forklift called a Versa-Lift, a “narrow-profile” rigging forklift with extendable counterweights, designed to increase load capacity. The company currently owns two such forklifts: the 5-foot-wide 25/35, which picks 25,000 pounds when retracted, and 35,000 pounds when extended; and the larger 6-foot-wide 40/60, which picks 40,000 pounds when retracted, and 60,000 pounds when extended. These forklifts are narrow enough to navigate through tight-quarters, yet hefty enough to get the job done. ROG’S warehousing division is HEDDERICK PROPERTIES, offering 13 warehouses, and 167,000 square feet of indoor storage for short-term or long-term storage. There is also a 24,000-square-foot Machinery Distribution Center, where all machinery is received inside the building, and prepared for delivery. ROG’S, INC. truly is a one-stop rigger, offering rigging, crane service and warehousing, all with the customer’s needs in mind. As they say, “You get what you pay for!”
ROG’S, INC. & Hedderick Properties 327 East 18th Street Erie, PA 16503 814/453-6781 (ROG’S) & 814/456-1076 (Hedderick Properties) www.rogsinc.com May 2015 > www.mbabizmag.com > 41
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Most employers agree that the Affordable Care Act is indeed “unaffordable.” Recent estimates show that two-thirds of small business owners and 11 million workers will see premiums rise under ObamaCare.
Employer-Based Health Care – Five Years Into ObamaCare 48 < www.mbabizmag.com < May 2015
The Affordable Care Act (ACA) was enacted five years ago. Although several implementation phases were delayed, the past year has had a tremendous impact on the business community and the way employers provide health insurance. Data collected over the past few years shows that most would agree it should be the “unaffordable” care act. Employer based health care is the primary source of health insurance for more than 169 million people in our country and it is becoming less affordable. Rising costs paired with taxes and regulations in the ACA have put new restrictions on employerbased care — changing the way many employers will go about offering coverage in the future. Small business owners are being affected the hardest. Changes in underwriting policies due to the ACA are affecting premiums in a negative way primarily for those least able to afford it. A new report from the Obama administration estimates that two-thirds of small businesses and 11 million workers will see premiums rise under ObamaCare. In fact, a recent study from NFIB shows that 62 percent of small business owners are already paying higher premiums. This leads to increased costs for employees through higher deductibles and increased out-of-pocket expenses. A National Small Business Association survey found that 91 percent of small businesses reported an increase in per-employee costs at their most recent renewals. The Manufacturer & Business Association recognizes that its members are facing significant challenges and have many concerns regarding the ever-changing health-care insurance landscape. Much of this was anticipated and the Association has taken steps over the past few years to assist members with questions and help provide solutions. “Employers are concerned about compliance, affordability and in almost all cases, doing the best they can for their employees,” explains Patty Smith, the MBA’s director of Employee Benefit Services. “The MBA is ready and willing to help with these and any other concerns.” At the Manufacturer & Business Association Insurance Agency (MBAIA), we are working to help companies navigate these challenges. According to Melissa Damico, client service manager, “Most employers are taking advantage of ‘grandmothering’ and either keeping their current plans or making minor changes such as increasing deductibles to help control premium costs. They are trying to stay out of the ACA for as long as possible.” In an attempt to lower premium costs, most companies are following the trend of increasing deductibles or employee contributions and sometimes both. The companies we work with have provided benefits to their employees for a long time and these changes are hard for them. “They struggle with being fair vs. being affordable,” says Ryan Murphy, a licensed insurance agent at the MBAIA. Although health insurance rates continue to rise, the Association has seen better numbers with some ancillary products. The MBA Insurance Committee recently negotiated a two-year rate hold with Delta Dental, the No. 1 provider of dental benefits in the United States. These plans have no waiting periods and low rates and are exclusive to MBA members. A two-year rate hold is also in place with Aetna for MBA Group Life and AD&D rates as well as short-term disability (weekly indemnity) rates.
Absolute Choice The Association has seen the direction things are going over the past few years and is continually working to help its members. With the above challenges in mind, the MBA rolled out Absolute Choice, a private benefit marketplace exchange, last fall. Research shows that private exchanges are the best benefits option for most employers. J.D. Power and Associates reports that 47 percent of businesses intend to adopt a private exchange, while a survey of more than 700 businesses conducted by the Private Exchange Evaluation Collaborative, a business-backed group, found that 45 percent of >
Manufacturer & Business Association Insurance Agency The professionals at the MBAIA provide every individual or company they serve with the highest level of personal attention, service and guidance on their personal and business insurance needs. < Lori Joint, Vice President Email: ljoint@mbausa.org
< Patty Smith, Director of Employee Benefit Services/Licensed Insurance Agent, 17 years of insurance experience Email: psmith@mbausa.org
< Melissa Damico, Client Service Manager/ Licensed Insurance Agent, 21 years of insurance experience Email: mdamico@mbausa.org
< Ryan Murphy, MHP Licensed Insurance Agent, 10 years of insurance experience Email: rmurphy@mbausa.org
For more information, call 814/833-3200 or 800/815-2660, or visit www.mbausa.org or www.absolutechoicembausa.org. May 2015 > www.mbabizmag.com > 49
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employers have implemented or are considering using a private exchange for active employees before 2018. Absolute Choice, the MBA’s private marketplace exchange, provides member companies of all sizes with a wide range of plan choices and a user-friendly interface. It helps to address employers’ common concerns such as cost control, predictability and administrative and compliance responsibilities. “It’s a private exchange marketplace that allows employers to have the flexibility of multiple options and to help to better predict year-to-year increases,” explains MBA Vice President Lori Joint, who oversees the program offered through the MBAIA. “It has a powerful and easy-to-use administration system that assists the employer and provides a wide range of benefit options to choose from.” Once an employer chooses an employee benefits package, Absolute Choice provides a system to manage the enrollment process for all of their employee benefits and ongoing benefits administration. Companies can choose whether to provide their employees with a self-service website for annual elections and to make life event changes, manage this process for their employees, or have the MBA make employee benefit changes. In the end, all benefit information is stored in one place and accessible at any time. Making it easier for year to year quotes from multiple carriers at renewal time. “The benefits are numerous,” adds Smith. “Private exchanges reduce administrative burden, increase benefit choices and can potentially lower costs for the employer and for the employee.”
on what is most important to them. Not everyone wants a high-end plan, some would rather add on dental and vision. It can actually end up saving money as you don’t end up ‘over insuring’ people. If employees want more than the dollar amount offered by the employer, they contribute money of their own.” Another advantage of the Absolute Choice private exchange marketplace is its wide variety of ancillary products. Dental, vision, group life and AD&D, short-term disability, wellness, critical illness and accident, longterm care, workers’ compensation, employee assistance programs and alternative spending account administration (FSA, HRA and HSA). Critical illness and accident plans have become increasingly sought-after products. Accident insurance provides benefits for on- and off-the-job accidents and pays a lump-sum benefit to the insured that can be used to help cover the costs not paid by the primary insurer. Critical illness policies, for example, pay a lump-sum benefit if the insured is diagnosed with a covered critical illness, such as heart attack or stroke. Experts say employers need to be aware of these benefits and the resources that are out there, especially those that are ACA compliant. “We want to be their resource, their person to help them navigate the challenges that lie ahead, and we have the tools and resources available to do that through a number of different ways,” says Joint. “We are going to be out in the region talking to members to help find the right solution for them; we’ll help them figure it out.”
Experts say the private exchange model works. Private exchange marketplaces offer more options, flexibility and overall costs savings. In fact, Absolute Choice’s alternate funding plans were built with small business in mind. Employers with as few as 10 employees can self-insure their plan with confidence. The MBAIA has long-term relationships with the participating carriers and works closely with them to come up with the best possible solution for the company. The Absolute Choice program also has the added benefit of its partnership with Buck Consultants, a Xerox Company, providing unparalleled support and expertise. “Employers like the ease and flexibility, but they also like that it’s a part of the MBA, which is a name they trust, and they know we go above and beyond to do whatever it takes to provide them with the best service,” explains Joint. “We answer so many questions for people whether they go with our insurance agency or not, because that’s what we’re here for. We want to help them, and we’re trying to help businesses succeed by giving them the tools and ability to succeed in today’s environment.”
Defined Contribution for Health Insurance Benefits Under a defined contribution approach for purchasing a health plan, an employer gives its employees a fixed contribution (dollar amount) to purchase coverage. Very similar to how many companies have converted their employee retirement benefits from a defined benefit to a defined contribution model (i.e. 401(k) plans).
The MBA’s Absolute Choice program, which is offered through the Manufacturer & Business Association Insurance Agency, presently partners with carriers it knows and trusts, including Aetna, Allstate Benefits, Delta Dental, UnitedHealthcare, UPMC Health Plan. Benefits include: • • • • • • • • •
Medical and prescription drug Critical illness insurance Accident insurance Dental Vision Group Life and AD&D Short-term disability Long-term disability Wellness (carved-out)
• Alternative spending account administration (FSA, HRA, HSA) • Employee Assistance Program • Workers’ Compensation • 401(k) Retirement Savings Plan • Retirement Assistance
This approach gives employees more choice and responsibility when choosing health coverage and allows the employer to limit its financial contribution to a fixed amount. Absolute Choice is primed for use with the defined contribution approach. It works best in a private exchange environment, where employees have a choice on how to spend their benefit dollars. Experts say, of the 1.7 million active group lives currently on private exchanges throughout the country, at least half of them are using the defined contribution model. “We believe the defined contribution approach is the wave of the future,” says Joint, “and it makes future increases more predictable. If you give each employee $300 per month, they have more flexibility to spend it May 2015 > www.mbabizmag.com > 51
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i n n o v a t i v e machining and manufacturing
Specializing in Large Component Precision Machining - Injection Molds - Die Cast Dies Fixture and Metal Fabrication - Full Service Mold & Die Revision and Repair Global Solutions - No Project is Too Large or Small 2012 East 33rd Street | Erie, PA 16510-2597 | ph: 814.898.4321 | fx: 814.899.5671 | w w w . r e d d o g - e r i e . c o m
2015-2016 Manufacturer & Business Association Board of Governors Executive Committee
Chairman William Hilbert Jr., President Reddog Industries
Vice Chairman Donald Hester, President and Chief Executive Officer MAJR Products
Treasurer Harry Eighmy, Chief Operating Officer American Turned Products
Secretary and Immediate Past Chairman Timothy Hunter, President and Chief Executive Officer McInnes Rolled Rings
Ex Officio Paul Kenny, President McManis & Monsalve Associates
Philip Katen, President Plastikos
Mark Hanaway, Vice President Tech Molded Plastics, Inc.
Jeff Plyler, President Plyler Enterprises
Mike Weber, President and Chief Executive Officer Smith Provision Company
Board Members
Andrew Foyle, President H&H Machined Products Co.
New Board Members
Message from the Immediate Past Chairman
C. Bruce Kern II, President Curtze Food Service
Mark Rose, Director, Aerospace Operations & Supply Chain LORD Corporation
Greg Sbrocco, General Manager, Global Supply Chain - Services GE Transportation
On behalf of the Manufacturer & Business Association (MBA) Board of Governors, I want to thank you for giving me the opportunity to serve as your chairman. Guiding this organization forward with such a talented group of business and industry leaders has been a truly amazing experience. I also want to take a moment to congratulate my successor Bill Hilbert Jr., president of Reddog Industries, as well as Don Hester, Harry Eighmy and Paul Kenny on their appointments to the 2015-2016 Executive Committee. I look forward to meeting with you and the rest of the Board, including new Board members C. Bruce Kern II, Mark Rose and Greg Sbrocco, in the days ahead. At the MBA, we have an extremely dedicated Board whose mission is to continue to find new initiatives and services that will benefit our members and their operations. I am confident that together — through the efforts of this new leadership team and the Association’s dedicated professional staff — we will continue to accomplish great things. Sincerely,
Timothy Hunter, President and Chief Executive Officer McInnes Rolled Rings May 2015 > www.mbabizmag.com > 53
May 2015 > www.mbabizmag.com > 55
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Cultivating
innovation. The 21st century market demands innovative solutions, and innovation is born of curiosity and imagination. Thatâ&#x20AC;&#x2122;s why weâ&#x20AC;&#x2122;re funding elementary school activities and working with high school and college students through internship and job training programs. We want to help light the imaginations of our children and feed their demand for knowledge. We see it not only as an investment, but as our duty to the future.
www.fmctechnologies.com
May 2015 > www.mbabizmag.com > 61
May 2015 > www.mbabizmag.com > 63
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A FAMILY BUSINESS BUILT ON INTEGRITY
SUMMIT/NEW YORK 8840 Peach Street, Erie 16509 814.866.8840 MILLCREEK 4202 W. Ridge Road, Erie 16506 814.833.8840 CORRY 38 W. Columbus Avenue, Corry 16407 814.664.8840
When Marsha Marsh discovered her passion for helping people realize their dreams through real estate, she went all in and never looked back. As a REALTOR® and family business owner, she knows what it means to be dedicated—to her clients, her community, and her children. Marsha prides herself on a commitment to loyalty and listening to her clients’ needs, hopes, and dreams. With her sons, Laban and Levi, they have built their business on integrity and never stop learning new and better ways to serve their clients. In addition, we are proud to be recognized as Erie’s trusted advisors when it comes to buying or selling real estate in Northwestern Pennsylvania and Western New York. Call one of our offices today and visit www.MarshaMarsh.com for all your real estate needs!
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CO M PA N Y P R O F I L E Loesel-Schaaf … Making A Difference
LOESEL-SCHAAF INSURANCE AGENCY, INC.
Diverse Products and Services For more than 88 years we have been an independent multi-line insurance agency, offering a wide array of products and services. Growing to four separate divisions, encompassing just about every insurance need possible, the Agency has become one of the largest “one-stop-shop” for businesses and individuals across the Tri-State region. The Employee Benefits Division, provides countless benefits and plan designs for employer groups of all sizes. We also have a web-based benefits administration platform to streamline your processes and help you go paperless. We educate our clients on changing ACA regulations and our e-benefits administration helps our clients stay compliant.
Doug Loesel, President
The Commercial Division provides coverage for all types of businesses, ranging from “Mom and Pop” to large manufacturing operations. We also work in specialty markets such as hospitality and transportation. “We are proud to have long-standing relationships with some of Erie’s finest companies,” Doug Loesel notes. For individual needs, the Personal Insurance Division offers policies for auto, home, boat, umbrella, RV, motorcycle & rental property. Whatever you need, we have products to protect you. Doug Loesel and Patrick Wachter
The Life and Financial Services Division offers individual life insurance, disability, medical, long-term care, Medicare supplements, retirement planning and annuities. We consider your finances while you are working, in your retirement, as well as your estate needs. Whether you are planning for college education, nursing care for your parents, or want to acquire that summer home on the lake, our professionals can help you achieve your goals. We are experts in the Long-Term Care field. We are proud to say that we are the only agency in the region with four Certified Long-Term Care Specialists. Many organizations, including the MBA, have endorsed and offer our LongTerm Care Planning and Education Program (LTCEPP®) to their memberships. Our expertise, partners and carriers give us the most experienced team in the region. We also have nine Certified Health Insurance Marketplace Agents to help individuals, families and employers navigate the new world of buying health coverage on the Marketplace/Exchange. If your family members or neighbors need help purchasing individual health insurance, we can help.
Eric Consiglio, Kathy Aranyos and Ed Althof
LOESEL-SCHAAF INSURANCE AGENCY, INC. Loesel-Schaaf Insurance Agency, Inc. 3537 West 12th Street Erie, PA 16505-3650 Phone: 814/833-5433 Toll-Free: 877/718-9935 Fax: 814/838-6172 www.LSinsure.com
Expert Staff “Having a professional staff averaging 25 years of insurance industry experience, we effectively solve problems for our clients.” says Doug Loesel. “We also stand apart from our competitors in continuing education and the various designations we hold such as CPCU, AAI, CEBS, CLTC, CLU, GBA, REBC, RHU, SPHR and the list goes on. We have a vast reservoir of knowledge from which to draw and a team approach is often utilized. Someone on staff has most likely tackled just about any challenge and together we can find a solution.” We are pleased to announce the addition of Dustyn Risner and Erin Cauley to our sales and marketing staff. Dustyn will concentrate in the Commercial Division and will also be handling Personal Insurance. Erin’s focus is as a Medicare Advisor and Individual Health Insurance consultant. Because circumstances change, we offer a complimentary review of your personal and business policies to ensure adequate protection. At Loesel-Schaaf, our clients and staff proclaim “We make a difference” in their lives and in the community.
May 2015 > www.mbabizmag.com > 69
The expertise to help your business prosper. In a world where everyone wants to sell you their product, wouldn’t it be nice if someone showed up at your door with an idea? We at Citizens Commercial Banking are dedicated to doing just that. That’s why we developed a manufacturing specialty. Our bankers have taken the time to understand your industry and will take the time to understand your particular business. So whether you want to talk about supply chain financing, inventory management, working capital maximization, growth of business overseas/financing of foreign receivables, attracting and retaining a skilled manufacturing labor force, banking support of lean manufacturing or cell manufacturing our industry specialists are here to help you. For more information on how Citizens Commercial Banking can help your business call: John Dill, Senior Vice President (814) 453-7265 Ed Kloecker, Senior Vice President (814) 453-7233 Doug Patton, Senior Vice President (814) 453-7212
© 2015 Citizens Financial Group, Inc. All rights reserved. Citizens Commercial Banking is a brand name of Citizens Bank, N.A. and Citizens Bank of Pennsylvania. Member FDIC. CMAV445M
< In Memoriam
Association Recognizes Leadership, Influence of Erie Industrialist, Newspaper Executive The Manufacturer & Business Association (MBA) was deeply saddened by the loss of two of Erie’s most respected and influential business leaders this year, Chester Giermak and Edward Mead. Giermak was the former president and chief executive officer of Eriez Manufacturing Company; Mead had most recently served as chairman emeritus of the Times Publishing Company. “Chet Giermak is a man who acted honorably and with distinction in every aspect of his life. He was thoughtful, intelligent and kind. He was my mentor and my friend and had a profound impact on me both professionally and personally. I can’t find the words that could properly convey how much I respected, loved and admired Chet,” said MBA President Ralph Pontillo. “Ed Mead was a great man. He never let his wealth or power trump his humanity. When he spoke to you, it was always with a smile and a genuine interest in what you were saying. He was the very definition of American journalist, interested more in the facts and the truth than he was in his own opinion.” “Both Chet and Ed shared a lot of the same characteristics. They both deeply cared and respected the people they worked with. They were humble and respectful of their roles as leaders,” Pontillo continued. “They were clear, decisive visionaries. They loved and cared deeply for family, community and country. If I had to pick one word to describe Chet and Ed, that word would be ‘class’ — they were loaded with it. They were members of the highest order of America’s Greatest Generation. The loss to our community is immeasurable and, in my opinion, a void that will never be filled.” Giermak, who passed away on March 16 at the age of 87, was a former chairman and member of the Manufacturer & Business Association Board of Governors who served as Eriez president and CEO from 1971 to 2003. Photo courtesy of the Business Magazine
According to the company, Giermak blended lessons from his days as a two-time All-American college basketball player at William and Mary together with his business acumen and applied them successfully during his 33-year tenure at Eriez. “Chet’s active, hands-on managerial style led him to walk through the offices and plant on a daily basis talking with as many employees as possible,” said Charlie Ingram, Eriez vice president of Sales and Marketing. “Able to address every employee by name, he maintained an ‘open door’ policy that encouraged any company employee to come in and discuss any issue with him at any time.” Along with the respect he accorded every employee, according to Eriez, Giermak also treated everyone with an uncommon degree of trust. He ordered time clocks removed “as a way of saying to our people that we trust them to arrive and leave at designated times.” He then removed all bells and buzzers that signaled start and quit times and coffee breaks. “Chet was a great man who has left an indelible mark on Eriez’ business, people and culture,” said Eriez President and CEO Tim Shuttleworth. “His legacy lives on at Eriez every day.” Giermak was named a Distinguished Pennsylvanian by Gannon University in 1989. He served on various boards in Erie, including Saint Vincent Health Center, Hamot Medical Center, the Erie Conference on Community Development, the MBA, and the Alumni Society at William and Mary. Mead, a longtime newspaperman and executive at the Times Publishing Company, passed away March 11. He was 88 years old. Mead had worked for 63 years at the Times Publishing Company, starting in 1950. He was co-publisher of the TimesNews from 1974 to 1996. “Ed was a real big leaguer, so he wasn’t just wonderful for us, he was a giant in the newspaper business,” said Times-News editorial writer Pat Cuneo. “He had friends all over the country, and he was very well connected to sports.” Indeed, Mead was an all-star athlete at Cathedral Preparatory School and later at Princeton University. He even made several prominent college all-star football teams. After his graduation from Princeton in 1949, Mead spent a year on the Trenton, N.J., Times. In 1950, however, he returned to Erie to work for his father John Mead Jr. According to the Times-News, Mead worked in every department at the newspaper before joining the city desk as a copy editor in 1952. He also served as president of the Times Publishing Company, co-publisher and editor of the Erie TimesNews. Photo courtesy of Christopher Millette/Erie Times-News
Throughout his career, Mead made it a point to attend major events all over the country, from sports to politics, including four decades of covering political conventions. He also wrote more than 14,000 “Odds and Ends” columns under the pen name Ed Mathews from 1952 until late 2013. “He was just a remarkable guy yet very down to earth, so he was beloved in our business,” added Cuneo. “We would go to him as a mentor all the time, so his passing marks a terrible milestone for us. He’s among the last of the old guard.” Mead served as an officer in the Pennsylvania Newspaper Association and the American Society of Newspaper Editors. He also served on numerous boards, including the Erie-Western Pennsylvania Port Authority, and as chairman on both the Saint Vincent Health Center board and the board of Villa Maria College. May 2015 > www.mbabizmag.com > 71
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2015-2016 Manufacturer & Business Association Staff
From top, left: Bea Blenner, Stacey Bruce, Rose Bruno, Tracy Daggett, Melissa Damico, Lisa DeFilippo, Christine DeSantis, Christine DiLuzio, Pam Durst, Dean Falletta, Robyn Hopper, Chuck Jenkins, Lori Joint, John Krahe, Tammy Lamary-Toman, Karen Learn, Laurie Mattis, Ann Miaczynski, Ryan Murphy, Casey Naylon, Terry Nunez, Brad Phillips, Tammy Polanski, Amy Pontillo, Ralph Pontillo, Patty Smith, Karen Torres, Sarah Vincent, Patty Welther, Dianne Wodarski, Angela Zaydon and Norm Zymm.
May 2015 > www.mbabizmag.com > 73
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