Business Magazine - May 2019 by MBA Business Magazine

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OCTOBER 2019 – ANNUAL REPORT – AD OPTIONS: Company Profile Rate: $1,890 Profile Space Deadline: THURSDAY, JULY 12, 2019

Roberts Companies Headquarters: 5501 Route 89 Phone: 814/347-1300 or 1-800-955-4087

Rise With Roberts

Capabilities Warehousing | Roberts offers uniquely customizable solutions for clients that have temperature sensitive products, strict deadlines and large or small shipments, both globally and nationwide. Roberts currently has a multitude of meticulously maintained, pest-controlled and heated space facilities for food grade products in Erie County, Pennsylvania. All facilities including New York locations, conveniently located off Interstate 90, are equipped with a bar code data collection system providing directed pick and pack location assignment, real-time inventory capability and a first in-first out (FIFO) management system.

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Profile Materials Deadline: WEDNESDAY, JULY 24, 2019

North East, PA 16428

History Founded in 1978, the Roberts Companies were built on a foundation of asset-based local, regional and over the road (OTR) units capable of running the lower 48 states and eastern Canada with a compliment of warehouse/distribution/ cross dock space in Western PA and Western NY. Roberts has a vast pool of resources and professionally trained staff to provide customers with full Supply Chain Solutions. Roberts provides consistent on-time service to clients through sophisticated management systems, strong client relations and a commitment to excellence. Office locations are in Erie and Pittsburgh, Pennsylvania, Harford, Connecticut and Charlotte, North Carolina to support its business across the globe.

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

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

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

• Breathtaking views and amazing sunsets • Award-winning hotels and first-class modern convention center • 392 sleeping rooms connected to 128,000 square feet of combined meeting space

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

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BUSINESS VOL. XXXII NO. 5 | MAY 2019

MAGAZINE

SPOTLIGHT Q&A:

HARMONY CASTINGS PROUD TO MANUFACTURE IN PA

WORLD AUTHORITY IN SEPARATION TECHNOLOGY FOCUSES ON INVESTMENT, FUTURE AND COMMUNITY

SPECIAL SECTION:

MANUFACTURING SHOWCASE

HOMEGROWN BUILT STRONG. WORKS HARD. WON’T QUIT.

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You want reliable pliers. You want pliers made in America. Most of all, you want pliers that don’t just finish the job, but defeat the job. Well, good news: CHANNELLOCK® has not only what you want, but what you need. That’s why we’ve been making our pliers in our hometown of Meadville, PA for more than 131 years. Is it the easiest way? Probably not. But, it’s the CHANNELLOCK® way. For true American-made pliers: channellock.com

FEATURES FEATURE STORY | WHAT’S NEW

Manufacturing Matters Why the demand for skilled workers is stronger than ever.

COVER STORY | LOCAL PROFILE

4 Eriez

Company officials describe how this world authority in separation technology became a global manufacturer by staying focused on the future while holding onto the values of its past.

LOCAL

SPOTLIGHT Q&A | MANUFACTURING

9 DEPARTMENTS

SPECIAL SECTION

BUSINESS BUZZ

EVENTS & EXTRAS

PEOPLE BUZZ

WHAT’S HAPPENING

EDITORIAL

See exclusive photo coverage of the Association’s Women in the Workplace IMPACT Luncheon.

LEGAL BRIEF | LEGISLATION

AWARDS AND PROMOTIONS

HR CONNECTION

LEGAL Q&A

WORKPLACE TRENDS

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

Contributing Writers Jezree Friend Lisa Smith Presta Jamie R. Schumacher Kasey Stewart Tammy Lamary-Toman

Homegrown: The ins and outs of Pennsylvania’s debate to legalize recreational marijuana. Lisa Smith Presta and Jamie Schumacher

SHOWCASE OF MANUFACTURERS

GET ANSWERS

Executive Editor Karen Torres ktorres@mbausa.org

Andy Renkey, president, V-Process Foundry Group, talks about what’s happening at Harmony Castings, a Pittsburgh-area company and why it is proud to produce high quality aluminum castings and other services in the Keystone State.

SPECIAL SECTION

Feature Photography R. Frank Photography Additional Photography iStock Photography Design, Production & Printing Printing Concepts Inc. printcon@erie.net

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

ON THE HILL | WAGES

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

Learn why Governor Tom Wolf’s plan to raise the minimum wage will not solve Pennsylvania’s poverty problem and only hurt small businesses in the long run. Jezree Friend

On the Cover: Eriez® is entering its 77th year in business with a focus on the future and an ongoing investment in technology and the community in which it operates. Shown here are the company’s executive team led by Executive Vice President and Chief Marketing Officer Charlie Ingram, Eriez Executive Vice President of Global Technology Mike Mankosa, President and CEO Tim Shuttleworth and Vice President and General Manager of Eriez USA Tim Gland. For full story, see page 4. Mission Statement: The Manufacturer & Business

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

See this special listing of companies that are proud to have their products “Made in PA.”

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

© Copyright 2019 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

mbabizmag.com • MAY 2019

TWO TWOBIG BIGEVENTS. EVENTS.ONE ONEGREAT GREATBIG BIGCELEBRATION! CELEBRATION! TWO BIG EVENTS. CELEBRATION! Don’t Don’tmiss missyour youropportunity opportunitytoto tobe beaaabig bigpart partofof ofour oursixth sixth annual Manufacturing Day Day celebration. celebration. Don’t miss your opportunity be big part our sixthannual annualManufacturing Manufacturing Day celebration.

MFG MFGSHOWCASE SHOWCASEEVENT EVENT(8(8 (8a.m. a.m.–––111p.m.): p.m.):Our Ourkickoff kickoff event gathers more than than 2,000 2,000 middle middle and and MFG SHOWCASE EVENT a.m. p.m.): Our kickoffevent eventgathers gathersmore more than 2,000 middle and

highschool schoolstudents, students,teachers, teachers,administrators, administrators,policy policyand andindustry industryadvocates advocatesinto intoour ourExhibit ExhibitHall Halltoto high high school students, teachers, administrators, policy and industry advocates into our Exhibit Hall to explore explorenumerous numeroushigh-tech high-techexhibits exhibitsand andinteractive interactivedemonstrations, demonstrations,including including3D 3Dprinting, printing,robotics, robotics, explore numerous high-tech exhibits and interactive demonstrations, including 3D printing, robotics, CNC CNCmachining, machining,drone dronetechnology technologyand andmore! more!Plus, Plus,this thisyear’s year’sevent eventoffers offerseven evenmore morecutting-edge cutting-edge CNC machining, drone technology and more! Plus, this year’s event offers even more cutting-edge breakout breakoutsessions sessionsfor forattendees attendeestotointeract interactwith witha adiverse diversegroup groupofofindustry industryexperts expertsand andlearn learnabout about breakout sessions for attendees to interact with a diverse group of industry experts and learn about the thehigh-paying high-payingjobs jobsavailable availableinina avariety varietyofofmanufacturing manufacturingindustries. industries. the high-paying jobs available in a variety of manufacturing industries.

MBA MBAANNUAL ANNUALEVENT EVENTCOCKTAIL COCKTAILRECEPTION RECEPTION(5(5– –7 7p.m.): p.m.):Our Ourevening eveninggathering, gathering,which whichincludes includes MBA ANNUAL EVENT COCKTAIL RECEPTION (5 – 7 p.m.): Our evening gathering, which includes more morethan than1,000 1,000business businessand andcommunity communityleaders, leaders,begins beginswith witha atwo-hour two-hournetworking networkingand andcocktail cocktail more than 1,000 business and community leaders, begins with a two-hour networking and cocktail reception receptioninside insidethe theExhibit ExhibitHall, Hall,giving givingample ampleopportunity opportunityfor forsponsors sponsorsand andexhibitors exhibitorstotoreach reachsome someofof reception inside the Exhibit Hall, giving ample opportunity for sponsors and exhibitors to reach some of the themost mostinfluential influentialbusiness businesspeople peopleininour ourregion. region. the most influential business people in our region.

We Webelieve believethat thatbybyworking workingtogether, together,we wecan canpromote promotethe theimportance importanceofofa arobust robustand andinnovative innovative We believe that by working together, we can promote the importance of a robust and innovative manufacturing manufacturingindustry industry——the themost mostpowerful powerfulforce forcebehind behindour ournation’s nation’seconomy, economy,which whichcontinues continuestoto manufacturing industry — the most powerful force behind our nation’s economy, which continues to provide provideoutstanding outstandingcareer careeropportunities opportunitiesfor forour ouryoung youngpeople. people. provide outstanding career opportunities for our young people.

BE BEBIG! BIG!Please Pleaseconsider considerjoining joiningthis thisyear’s year’sManufacturing ManufacturingDay DayCelebration Celebrationasasa asponsor, sponsor,exhibitor exhibitororor BE BIG! Please consider joining this year’s Manufacturing Day Celebration as a sponsor, exhibitor or both! both!We Wehave havea avariety varietyofofvalue-packet value-packetpackages packagesdesigned designedfor forevery everyinterest interestand andbudget. budget. Please Please

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Manufacturing Matters

FEATURE STORY | WHAT’S NEW

DEMAND FOR SKILLED WORKERS IS STRONGER THAN EVER Although there’s been a massive effort to recruit more young people into the skilled trades and STEM careers (science, technology, engineering and math) in recent years, the demand for skilled workers in manufacturing isn’t going away anytime soon. In fact, the demand for these workers is stronger than ever. According to research by the consulting firm Deloitte, as many as 2.4 million manufacturing jobs may go unfilled by 2028, putting $454 billion in production at risk. A lack of skills and “impending retirements” of current workers “suggest the industry could experience employment bottlenecks,” the consulting company said in a report done with the Manufacturing Institute, the social impact arm of the National Association of Manufacturers (NAM). The recent report was based on a survey of 400 U.S. manufacturers and supplemented with executive interviews, analysis of data and economic forecasts. Manufacturing “must contend with one of the tightest labor markets in recent history,” Deloitte said. The 2.4 million figure assumes manufacturing employment will average 1.5-percent growth a year. In 2018, there were 508,000 open jobs in U.S. manufacturing. In an industry that contributes so much to the economic vitality of our state and nation, the shortage of skilled workers indeed matters.

Manufacturing represents an essential component of gross domestic product. In 2018, it was $2.33 trillion. That drove 11.6 percent of U.S. economic output, according to the Bureau of Economic Analysis. Manufactured goods comprise half of U.S. exports.

and the many employers who are proud to have operations here — as well as around the globe.

Manufacturing adds a lot of value to the power of the U.S. economy. Every dollar spent in manufacturing adds $1.89 in business growth in other supporting sectors, according to NAM, such as retail, transportation and business services.

We’ll talk with Eriez President and CEO Tim Shuttleworth about how the company, “a world authority in separation technology,” became a global manufacturer by staying focused on the future while holding onto the values of its past. We’ll also talk with Andy Renkey of Harmony Castings about the innovative processes at the company and why its proud to manufacture in PA.

The United States has 12.75 million manufacturing jobs, according to the Bureau of Labor Statistics. That employs 8.5 percent of the workforce. These jobs pay 12 percent more than all others.

Plus, don’t miss our Showcase of Manufacturers, which features many of our member companies that contribute to the success of manufacturing in the Commonwealth.

In this edition of the Business Magazine, our 10th annual Made in PA issue, we’ll highlight the impact of manufacturing, especially here in the Keystone State,

The Manufacturer & Business Association is always proud to support business and industry through its many programs and services. Visit www.mbausa.org to learn more!

MANUFACTURING IS KEY TO OUR FUTURE!

mbabizmag.com • MAY 2019

COVER STORY | LOCAL PROFILE

Since its founding in 1942 in Erie, Pennsylvania, Eriez has grown into a global manufacturer with 12 profit centers around the world. Shown here is the company’s expansive Wager Road facility, which is one of two Eriez manufacturing facilities in Millcreek Township in Greater Erie.

World Authority in Separation Technology Focuses on Investment, Future and Community A world authority in separation technology, Eriez® is a manufacturer focused on the future while holding onto the values of its past. Embarking on its 77th year in 2019, the closely held company has a presence in 12 profit centers on six continents, with a worldwide workforce of approximately 860, generating an estimated $200 million each year. At the heart of its operations — and history — is Erie, Pennsylvania, which is home to its world headquarters and Eriez USA manufacturing division, with 350 employees at two 120,000-square-foot facilities, located at Asbury Road and Wager Road in Millcreek Township.

Eriez’ national and international customers — which encompass everything from food manufacturers to those in the chemical, mining, metalworking, aggregates, textiles, plastics, packaging, rubber and recycling industries — look to Eriez as a leader in separation, inspection and material handling equipment. In their view, Eriez is a reliable, qualitydriven manufacturer that is committed to staying ahead of the curve. In fact, Eriez’ commitment to innovation is one of the hallmarks of the company’s ongoing success, thanks to its rich history and ongoing investment in research and development. Eriez Flotation Division, for example, is not only a leading supplier of proprietary process equipment and new technology for the mining and minerals industry, but its innovative people and products, such as its HydroFloat® separators, are helping to “rewrite the book” on industry standards. “For example, it takes 15 to 30 years for something to become standard in the minerals industry,” says Shuttleworth, “and the reason is that all of their investments are mammoth. They are very risk adverse people, but we have new standards on the horizon and are getting traction.”

President and CEO Tim Shuttleworth describes Eriez, which was founded by O.F. Merwin in 1942, as a company that is committed to the community in which it operates and where it creates hundreds of jobs. “I tell people we’re in Erie, Pennsylvania for sentimental reasons not really for economic reasons,” he says. “We’re here because this is where we were founded, and this is where we’ve grown.” Leading the Way

At Eriez, what started as a way to make a permanent magnetic separator that would be used to remove stray pieces of metal or “tramp iron” from grain has evolved into a manufacturer of nearly 100 diverse products. From massive electromagnets and rugged metal detectors, to heavy duty vibratory conveyors and feeder systems, there is no mistaking Eriez’ trademark “orange,” its signature products or their impact on industries around the globe.

MAY 2019 • mbabizmag.com

Eriez has invested heavily in technolog y to enhance its manufacturing capabilities, including the addition of an approximately $1.2 million laser cutter at its Asbury Road headquar ters.

Eriez electromagnetic vibratory feeders are designed to handle hard-to-feed materials such as fine powders.

Eriez Xtreme Metal Detectors are used in a wide range of industries with high safety and quality standards, including chemical, food processing, packaging, textiles, pharmaceuticals, plastics and rubber.

Eriez’ diverse portfolio has allowed the company to maintain a solid balance, creating new opportunities and helping the company weather any downturns. “Right now,” Shuttleworth points out, “minerals are doing pretty well. Iron ore, coal and copper are the commodities that sort of drive us, and they’re all at a pretty good place for demand.” The coal industry certainly has been a bedrock of Eriez’ business for years. Yet aftermarket orders have been on an upward trend because of wear to decades-old equipment, which needs to be repaired or replaced. The demand for advanced products worldwide also is helping to drive Eriez’ sales growth. Solutions, such as Eriez’ dry vibrating magnetic filters (DVMFs), are being used to remove ferrous contaminants from materials for lithium ion batteries, while magnetic separators help to retain the purity of specialty glass mixtures for smartphone and tablet screens. “The more functionality they want in these products, then the materials have to get better and better,” says Shuttleworth. “So, that’s good for our business.” The food industry has been a particularly strong market segment for Eriez since its separation solutions are “mission critical” to achieving the industry’s strict quality standards for pet food, human food and food ingredients — formulated and processed. “Food is on a nice upwards trajectory, and the business is easier to manage actually because it is a business that grows continuously,” Shuttleworth explains.

Eriez recognizes the service of its dedicated workforce in all departments. Each star denotes five years with the company.

Eriez has kept its eye on the future not only in its facilities and equipment, but also its workforce. The company hired more than 40 new employees in 2018, and that trend is expected to continue through 2019, as well. Indeed, much of Eriez’ recruiting efforts are focused on attracting top talent from in and around the surrounding community. The manufacturer relies heavily on internal recommendations and established workers from the area, and those with ties to local trade schools and universities. “Most of the talent comes right out of the Erie talent pool,” Shuttleworth adds. As a major employer, Eriez offers competitive compensation, an attractive benefits package, tuition reimbursement and multifaceted retirement savings. The company also has a profit-sharing structure that has engaged its workforce to excel. >

Eriez also is revolutionizing many of its existing products with SMART Systems (System Monitoring and Reporting Technology) to help monitor process equipment and improve performance and recovery. For example, large magnetic separators used to remove metals in bulk materials, such as limestone, are now being outfitted with wireless sensors to signal when they are full. “We have a few products like that, and that’s where the future is headed,” Shuttleworth insists.

Investment Driven

According to Shuttleworth, Eriez is forward-thinking in both its products and operations. In recent years, new or expanded manufacturing facilities have increased production capacity by more than 50 percent. In 2006, the Asbury Road headquarters unveiled an expansive addition. In 2012, the company opened its new Wager Road facility, which houses its 5-Star Service Center and the manufacturing of some of its largest and most in-demand equipment. The acquisition of new robotic welders and laser cutting tables, highefficiency manufacturing cells and automated assembly systems have all contributed to Eriez’ operational success. This year, the company is implementing a new enterprise resource planning (ERP) software system to improve its processes and production control. “It’s really a strong foundation on which we can build,” says Shuttleworth.

About: Eriez is a privately held company and world authority in separation technologies. The company’s magnetic lift and separation, metal detection, fluid recycling, flotation, materials feeding, screening, conveying and controlling equipment have application in the process, metalworking, packaging, plastics, rubber, recycling, food, mining, aggregate and textile industries. Eriez manufactures and markets these products through 12 international subsidiaries located on six continents. Annual Sales: $200 million worldwide Headquarters: 2200 Asbury Road, Erie, PA 16506 Phone: 814/835-6000 Website: www.eriez.com

mbabizmag.com • MAY 2019

The Eriez MET Lab conducts state-of-the-art testing, including XRF Analysis, which is used to determine the chemistry of a sample by measuring the fluorescent X-ray emitted from it.

Many of Eriez’ products are identifiable by their impact on the industries in which they are used and Eriez’ trademark “orange.”

“Everyone in this company is on the profit-sharing plan, and we’re all on the same profit-sharing calculations,” explains Shuttleworth. “That goes from me on down. Every two or three months, we open up all the books and have the employees in a room, and we say, ‘This is how profitable we are; this is where we’re not. This is where our profits are coming from,’ so we get them all on board.” At Eriez, having “skin in the game” has been an effective motivational tool. All employees are part of the “Sales” team, no matter which department they are assigned to work. Employee names are also prominently displayed on large plaques within work areas with service years denoted by stars. Stars represent five years of service — an average tenure that now stands at 13 years due to a number of retirements. According to Shuttleworth, Eriez is the “poster child” for readiness to retire because of its stable employment — a matter of pride for the company that has had no broad layoffs or work stoppages. As a matter of fact, Eriez’ leadership credits much of its stability, staying power and reputation as a “great place to work” to its guiding principle, the Golden Rule. “The fundamental value of how you treat people has never changed, and if you’re going to put it in one word, it’s trust,” explains Shuttleworth. “We trust employees, and our employees trust the management team and the owners.” This approach is apparent throughout Eriez — from its corporate offices to its manufacturing floor. “We trust our employees to give us an honest day’s work,” Shuttleworth says. “We don’t require them to punch a time clock to prove they were here, when they went to lunch and all that. We trust that they’ll take their lunch break responsibly, and they trust us that they’ll have stable employment at a wage level that’s a family-sustaining wage. That’s the essence of it.” Eriez fosters a positive work environment too. In recent years, the company cleared some wooded property to the west of its Asbury headquarters and built a park and ball field, which is used for company events and picnics, as well as youth sports teams. According to Shuttleworth, one of the benefits of being in business is the ability to give back. For years, the company, its employees and retirees have generously given their time and money to volunteer efforts and fundraisers that benefit the community as a whole. Charitable events and organizations, including the Heart Walk, Neighborhood Art House, Sight Center, Roar on the Shore®, the Second Harvest Food Bank, Habitat for Humanity, City Mission and many others, have experienced the impact of Eriez’ contributions firsthand.

2019 — Frank F. Aplan Award — Presented to Eriez Senior Director of Asia-Pacific Operations and Strategy Jaisen Kohmuench, the award recognizes engineering or scientific contributions that further the understanding of the technology of coal and/or minerals engineering. 2018 — Export Leadership Award from Chile — Recognizes Eriez’ exemplary leadership in exporting U.S.-made products and services. 2017 — Mining Magazine Award for Eriez Flotation Division’s Coarse Particle Flotation Technology, HydroFloat® 2017 — Eriez-India Wins Bosch Packaging Technology Best Supplier Award — Eriez-India was selected for this elite distinction based on exceptional product quality, consistent ontime delivery and outstanding service support after sales. 2015 — Eriez Hits Safety Milestone — Employees at Eriez’ Wager Road facility in Greater Erie worked more than 1,000 days without a lost time accident. Since opening in February 2012, there has not been a single lost time accident at the facility. 2014 — Frank F. Aplan Award — Presented to Eriez Executive Vice President of Global Technology Michael J. Mankosa, Ph.D., for engineering or scientific contributions that further the understanding of the technology of coal and/or minerals engineering. 2013 — Erie County Economic Development Corporation Keystone Award — For making an extraordinary impact on the region and an unparalleled contribution to the local economy.

“We’re very charitable in this community, and we have a policy where we give away 10 percent of our profits each year,” Shuttleworth explains.

2012 — Plant Engineering Product of the Year: SumpDoc® Fluid Recycling System

At Eriez, it’s yet another way that the globally successful manufacturer is contributing to the health, vitality and renewal of Erie, Pennsylvania — its hometown.”

2011 — Recycling Today Award for P-Rex® Permanent Rare Earth Magnet

For more information about Eriez, visit www.eriez.com.

Awards and Recognitions Eriez has earned the distinction as a market leader in the areas of separation, inspection and material handling equipment. Here are some of its most recent awards and recognitions:

MAY 2019 • mbabizmag.com

2010 — Plant Engineering Product of the Year for P-Rex® Permanent Rare Earth Drum Magnet

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Printing Concepts is celebrating its 50th anniversary this year! The company was founded in 1969 by Dennis Rositer as a quick print franchise known as Kopy Kat Printing. We are now in our fourth location offering services ranging from digital printing to direct mail services and many things in between. We attribute our growth and success to our relationships with our customers - past, present and future! Contact us today to learn more about HUV printing as well as the wealth of other servcies we offer: • Art department with complete layout and design assistance services • State-of-the-art 6-color and 4-color printing presses • HP Indigo digital color press for short run and variable printing • Complete bindery, die cutting, foil stamping and embossing • Comprehensive mailing and distribution systems • SFI® and FSC® certification that provides a sound commitment to our environment

4982 Pacific Avenue, Erie, PA 16506 814. 833. 8080 | 800.540.7805 printingconceptsonline.com Focusing on innovative cross media solutions with an environmentally responsible mindset.

SPOTLIGHT Q&A| LOCAL MANUFACTURING

Harmony Castings Proud to Manufacture in PA Manufacturing has formed Pennsylvania’s past, present and future – making it a significant component of our economy and our heritage. Here, Andy Renkey, president, V-Process Foundry Group, talks about what’s happening at Harmony Castings, a Pittsburgh-area company and why it is proud to produce high quality aluminum castings and other services in the Keystone State. Harmony Castings is marking its 40th year in operation in Harmony, Pennsylvania. Tell us about how it came to be the “oldest, most dedicated V-Process caster in the world.” Vacuum process casting is an innovative manufacturing process created during the mid-1970s as a cross-over casting technology that combines the best characteristics of both prototype and high-volume manufacturing. Our founder, Bill Willmont, traveled to Japan to learn about this new technology and quickly realized the potential in V-process. Mr. Willmont constructed Harmony’s facility in 1979 and began producing high-quality aluminum castings. For the past 40 years, Harmony Castings has been a recognized leader in vacuum process casting by supplying superior products for our valued customers. Explain your V-Process (vacuum molded casting) and the company’s cadre of molding technologies. V-process differs from traditional sand casting by utilizing vacuum pressure to define the shape of a casting. Traditional sand castings utilize additives to harden the sand and hold it together. Vacuum pressure eliminates bonded sand from our process, allowing Harmony Castings to produce a superior surface finish, tighter tolerances and thinner walls. In addition, V-process eliminates the requirement for added draft on parts and guarantees our patterns last the duration of any project. We have customers who purchased patterns 20 years ago and have never had to replace their original investment. Describe your customer base, your castings and what they are used for. Harmony Castings provides product to a wide array of industries. Our largest customers are in the medical, military, robotics and aerospace industries, but the applications for V-process

are endless. With our third-party aerospace quality certification (AS 9100 Rev. D), customers are ensured their castings will meet design intent. Any customer requiring speed-tomarket and flexibility in design will benefit from using the vacuum process. Recently, we have partnered with numerous companies in the electric or hybrid vehicle market. These innovative companies need prototype castings quickly and require numerous changes as their products develop. They also require the ability to increase production volumes quickly. These are all traits at which Harmony Castings excels. What other services does Harmony Castings provide? Our goal is to provide our customers a onestop-shop for all their casting needs. The majority of our customers’ requirements include detailed CNC machining and finishing services with chromate plating, powder coat or wet paints. In addition, many of our customers demand precise quality specifications through non-destructive testing, such as X-ray or die penetrant. Harmony Castings identifies and partners with industry experts to provide the additional services as needed. Harmony Castings has invested in both people and technology at its 25,000-square-foot facility. Tell us more. People are our most valuable asset, and we embrace input we receive from all team members. All our employees strive to achieve our “Perfect Day Philosophy,” which emphasizes the need for perfect service and perfect quality in our industry. Over the past seven years, we have recognized the importance of technology and have partnered with local colleges for engineering internships. These students helped broaden our vision on what we can accomplish through newer technologies. Harmony has doubled its engineering and

quality organization and now employs seven engineers. We utilize simulation modeling to optimize metal flow and solidification. Over the past 18 months, Harmony incorporated additive manufacturing technologies with the goal of establishing a hybrid manufacturing concept utilizing both 3D printing and V-process. Vacuum process by itself is impressive, and when we combine its advantages with 3D printing, we see tremendous future potential. What is the outlook for Harmony Castings in 2019? Harmony’s outlook is extremely positive. Understanding the strength of our competitive industry, we anticipated growth would occur when manufacturing recovered. Since 2015, we have added more than 7,000 square feet of manufacturing space and have experienced revenue increases of 68 percent. Harmony’s team is poised to capitalize on opportunity and has positioned itself with available capacity. Our outlook continues to be bullish, and we look forward to sustained growth. Why are you proud to have your castings “Made in PA”? Over the past century, Pittsburgh has been the cornerstone of modern metal casting and a foundation for casting innovation. Today, Pennsylvania is experiencing unparalleled technological growth. Our universities are partnering with businesses and local government as innovation leaders in robotics and additive manufacturing. Harmony Castings embraces new technologies and envisions limitless opportunities. For more information, visit www.harmonycastings.com.

mbabizmag.com • MAY 2019

LEGAL BRIEF | LEGISLATION

Homegrown: Pennsylvania Debates Legalization of Recreational Marijuana

In February 2019, House Bill No. 50 was introduced in an effort to legalize recreational marijuana. It is sponsored by Jake Wheatley Jr. of Allegheny County, who asserts that 60 percent of the Commonwealth favors full legalization. The bill seeks to amend the Medical Marijuana Act and is currently being considered by the Committee on Health. In its present form, House Bill No. 50 would implement tax rates which, as suggested by one Auditor General’s report, could generate upward of $580 million in annual tax revenue. The bill includes social justice reforms, provides for expungement of certain criminal records, incentivizes cannabis businesses to partner with farmers, and invests some of the tax revenue in studentdebt forgiveness, after-school programs and affordable housing. The bill also calls for 300 recreational cannabis retail locations (similar to state stores for alcohol) and provides for enforcement procedures through the Liquor Control Board.

Lisa Smith Presta is a trial attorney and Chair of the Insurance Litigation Department at MacDonald Illig. Her experience includes the handling of complex, multiparty litigation involving commercial disputes, breach of contract claims, fiduciary obligations, and professional services. She is also a member of the firm’s Commercial/General Litigation Practice Group and Labor & Employment Practice Group.

Jamie R. Schumacher is an associate in the Litigation Department at MacDonald Illig where she concentrates her practice in the areas of commercial litigation, employment litigation, and insurance defense. She is also a member of the firm’s Commercial/General Litigation Practice Group and Labor & Employment Practice Group.

In April 2016, the Pennsylvania legislature legalized marijuana use for certain medicinal purposes, and in 2017 and early 2018, growers and dispensaries opened across the Commonwealth. Now, the debate turns to if and when recreational marijuana use will be legal in Pennsylvania. At the time this article was written, 33 states and the District of Columbia had legalized medical marijuana; 10 of those states and the District had also legalized recreational marijuana use.

in the medical marijuana program, 83,000 of those have been issued identification cards allowing them to buy certain cannabis products, and nearly 1,000 physicians have been approved to certify patients to participate in the program. At present, there are 25 permitted growers/processors and 50 permitted dispensaries in Pennsylvania (although some in each category are not yet operational).

The Pennsylvania Department of Health reports that since medicinal marijuana’s legalization in 2016, more than 116,000 Pennsylvanians have registered as patients

The financial statistics cited in support of full legalization include the more than $132 million in total medical marijuana sales, and the corresponding tax revenue from growers/processors of more than $2 million.

Finally, as currently drafted, the bill only legalizes recreational cannabis use for individuals 21 years of age or older, who would be permitted to cultivate up to six plants at home as long as only three are flowering at any time. This is similar to other jurisdictions that have legalized recreational use, all of which limit such use to individuals 21 years of age or older and place various restrictions on possession and cultivation. Of key interest to employers, House Bill No. 50 maintains the imposition of civil and/ or criminal liability for undertaking a task under the influence of adult-use cannabis when doing so would constitute negligence, professional malpractice or professional misconduct. Currently, the Medical Marijuana Act expressly provides that it “shall in no way limit an employer’s ability to discipline an employee for being under the influence of medical marijuana in the workplace or for working while under the influence of medical marijuana when the employee’s conduct falls below the standard of care normally accepted for that position.” Recreational marijuana continues to grow as an issue, with 21 states, including neighbors New York and New Jersey, considering legalization legislation (Ohio voted not to legalize recreational marijuana in 2015, but the issue may resurface). In addition, political sources almost unanimously agree that cannabis legislation on the federal level — both medicinal and recreational — will be a smoking hot topic for the 2020 presidential campaign. For more information, contact MacDonald Illig Attorneys at 814/870-7600. mbabizmag.com • MAY 2019

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MAY 2019 • mbabizmag.com

Ridg-U-Rak 120 South Lake Street North East, PA 16428 814/725-8751 or Toll-Free 866/479-7225 www.ridgurak.com

More than 75 Years of Excellence in Serving the Storage Rack Market History At the end of WWII, there was a growing need to modernize and expand the nation’s warehousing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to fill those needs. Company after company was springing up, headed by owners who carved out a market share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding companies, investment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist. Ridg-U-Rak was a minor player in those early years. Although limited in marketing vision and hampered by a lack of manufacturing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the operation celebrates 75 years of serving the storage rack market, Ridg-U-Rak is commonly acknowledged as a company built on Integrity and Service, guided by the

John B. Pellegrino Sr., P.E., president and CEO

CO M PAN Y PR O FIL E

able leadership of its president and CEO, John B. Pellegrino Sr., P.E. Capabilities Ridg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with a production capacity of more than 140,000,000 pounds of finished steel products per week. With the addition in 2018 of its five-and-a-half-acre, under roof, warehouse and distribution center, Ridg-U-Rak has greatly increased the efficiency of its shipping department and freed up space for increasing manufacturing capacity at the main plant. These improvements are what contribute to it remaining one of the largest storage rack manufacturers in North America, and it is still a family owned business. One of the key contributors to the company’s success has been the increased talent base of its staff, with the ability to

completely manage large projects from design and code compliance, through manufacturing, to final installation and customer approval. Major capital investments in its manufacturing plants have been instrumental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality, but also the company’s environmental imprint by reducing its liquid paint usage. From recycling programs to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustainability expectations. Products Ridg-U-Rak provides an unlimited array of storage options. Whether deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can layout storage arrangements to meet a customer’s unique load, throughput and capacity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, and offers replacement parts that interchange with competitive racks. Many specialty storage options are available, including a racksupported crane system to store large dies and tools.

mbabizmag.com • MAY 2019

MAKING A DIFFERENCE LOESEL-SCHAAF INSURANCE AGENCY, INC. DIVERSE PRODUCTS AND SERVICES For more than 92 years, Loesel-Schaaf Insurance Agency, Inc. has 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 shops” for businesses and individuals across the tri-state area and beyond. “Having a professional staff averaging 25 years of insurance industry experience, we effectively solve problems for our clients,” says Doug Loesel, President. “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.” Because circumstances change, Loesel-Schaaf offers a complimentary review of policies, personal or business, to ensure adequate protection.

Commercial Insurance

Integrated risk management Coverage that keeps up with your industry.

Employee Benefits

Intelligent advice Programs that support your goals.

Personal Insurance

Custom-designed peace of mind Insurance that works as hard as you do.

Individual Life & More

For your peace of mind Affordable solutions that protect your lifestyle.

Medicare Options

For your lifestyle and needs Help with your Medicare choices. “At Loesel-Schaaf,” adds Loesel, “clients and staff proclaim, ‘We make a difference,’ in both their lives and in the community.”

LOESEL-SCHAAF INSURANCE AGENCY, INC. 3537 West 12th Street Erie, PA 16505-3650 Phone: 814/833-5433 Fax: 814/838-6172

www.airborn.com

AirBorn: Always In Action

AirBorn components are an integral part of many historical space exploration applications, beginning with the Apollo Missions and extending into the Voyager Program, Space Shuttles, International Space Station, Hubble Telescope, Mars Rovers and innumerable Earth-Orbiting Satellites. We’re proud to say our components are aboard the farthest man-made object from Earth: Voyager I. Our components are also designed into countless military and defense programs that keep our nation secure. Starting with attack helicopters and extending to manned and unmanned fighting vehicles, nuclear submarines, next-generation jets, high-altitude bombers and ultra-reliable missile systems. Customers trust AirBorn products to perform in extreme conditions, especially when lives are on the line. With nine North-American manufacturing facilities (one proudly located in Lake City, Pennsylvania) and one in Europe — AirBorn is a truly global organization. Since our founding in 1958, we’ve worked hard to deliver the highest-quality electronics to our customers worldwide. Want to join our team? Please visit airborn.com today!

AirBorn Inc.

•

2700 Mechanic St. — Lake City, PA 16423

•

814.774.5658

BUSINESS BUZZ | WHAT’S HAPPENING ACE WIRE SPRING & FORM CO., INC. MARKS 80TH YEAR IN BUSINESS

Ace Wire Spring & Form Co., Inc., an industry leader in the manufacturing of compression springs, extension springs, torsion springs and wire forms, is celebrating its 80th anniversary in 2019. According to the company, Ace Wire Spring & Form started out in the industry in 1939 with a small coiling machine making garter springs by hand. The owner, Joseph Vodvarka, was a machinist, working hands-on in the upstairs room of his house, which was converted into a small office / shop to produce the garter springs needed at the time. In 1976, Joseph Vodvarka’s daughter, Linda, and her husband, Rich Froehlich, bought the company and continue to keep Ace Wire Spring & Form a family owned and operated business. The company is located at 1105 Thompson Avenue in McKees Rocks.

Ace Wire Spring & Form is marking its 80th anniversary in 2019.

Penna Flame Industries was awarded the Commercial Heat Treater of the Year Award in 2018.

For more information, visit www.acewirespring.com.

PENN STATE BEHREND TO HOST INTERNATIONAL ADVANCED MANUFACTURING CONFERENCES ON JUNE 10-14 STUDENTS COMPETE IN FLUID POWER CHALLENGE

Penn State Behrend’s School of Engineering will host the co-located ASME International Manufacturing Science and Engineering Conference (MSEC 2019) and the 47th NAMRI/SME North American Manufacturing Research Conference (NAMRC 47) on June 10-14 at the Bayfront Convention Center in Erie, Pennsylvania. As the foremost international forum for applied research and industrial applications in manufacturing and design, the event combines the American Society of Mechanical Engineers (ASME) International Manufacturing Science and Engineering Conference and the North American Manufacturing Research Conference, sponsored by the North American Manufacturing Research Institution of the Society of Manufacturing Engineers (NAMRI/SME). The two conferences have been co-located since 2011. Together, these conferences represent the largest advanced manufacturing research event in the world, attracting more than 800 researchers and manufacturers from around the globe to share the latest manufacturing innovations and developments in manufacturing systems and processes, cyberphysical systems and materials processing. Attendees participate in more than 400 technical presentations, multiple panel discussions, poster sessions, lab and industry tours, workshops, an early career forum and a career fair. For more information or to register, visit https://namrc47-msec2019.behrend.psu.edu.

MAY 2019 • mbabizmag.com

SMC Business Councils (SMC), which recently merged with the Manufacturer & Business Association, hosted the Fluid Power Challenge (FPC) on Friday, March 22 at the Carpenters Training Center in Pittsburgh. It is the fifth year that SMC has hosted the event. The Fluid Power Challenge was created by the National Fluid Power Association (NFPA) as a way to introduce fluid power engineering into high schools and middle schools. Student participants compete for trophies in six categories, overall first, second and third place in the competition, along with a design winner, portfolio winner and teamwork winner. As one of only 18 such competitions across the nation, this event provides seventh and eighth grade students the opportunity to compete as teams using real-life scenarios that apply STEMrelated learning, to solve real-world problems and build a machine that solves the challenge given them. The competition requires students to use math, science, project management and communication to be successful. Williams — a major energy infrastructure company with a regional headquarters in Pittsburgh — provided employee volunteers who lent their engineering and safety expertise to participants, providing advice and guidance, and serving as judges for the competition. In addition to Williams, the competition was supported by other local companies, including Catalyst Connection, Creekside Springs,

Schroeder Industries and the Carpenters Training Center. This year, 28 teams competed with four students per team.

VALENTIS SECURITY INTRODUCES CANINE PROGRAM

Valentis Security, 1326 Streets Run Road in Pittsburgh, has announced that, as of May 1, it will be providing Explosive Detection Canines as part of its security program services. “We expect over the next several months that this program will expand to include more dogs as we maintain our focus to support Valentis operations at client sites and law enforcement agencies where there is a need to deploy certified and tested explosive detection dogs,” company officials stated in a press release. “The dogs we provide will meet the same requirements as military and law enforcement explosive detection dogs. Valentis views the canine program as an asset designed to further harden vulnerable client assets.” The canine program will be overseen by Joseph DeCellis. DeCellis comes to Valentis with multiple tours overseas when he worked with the U.S. military in Iraq and Afghanistan coordinating canine explosive detection support and training. He is also a former consultant with the U.S. Department of State that was tasked to support and train the Government of Mexico with their K9 program. He is also a former law enforcement officer in the Commonwealth of Pennsylvania. DeCellis is a Master Canine Trainer who can certify dogs and their handlers to be used in military and law enforcement operations. For more information, visit http://valentissecurity.com.

PEOPLE BUZZ | AWARDS AND PROMOTIONS URBAN ENGINEERS APPOINTS RUSH TO BOARD OF DIRECTORS

ENTERLINE NAMED PRESIDENT OF ERIE BAR ASSOCIATION

nationwide. Within this role, she oversees the firm’s multi-modal circulation planning, bicycle and pedestrian planning, streetscape master plans and public engagement projects.

Bradley K. Enterline is the new president of the Erie County Bar Association, a role which took effect January 1.

“I am honored to join Urban Engineers’ board,” Rush said, “and I am excited to help guide the continued success of our firm.”

Urban Engineers, 1319 Sassafras Street, has announced that Erika L. Rush, AICP, PP, has been elected to the firm’s board of directors. Rush serves as a firm vice president and practice leader for planning services. “Erika has been instrumental in the forward progress and success of our firm during her 20-year tenure,” said Urban President and CEO Kenneth R. Fulmer, PE. “We are thrilled about her election to our board and are looking forward to the leadership and keen insight she will bring.” For more than 30 years, Rush has worked with communities at neighborhood, small town, suburban and large city scales to enhance their quality of life with integrated land use, transportation, environmental and economic planning. She leads Urban’s planning practice

A certified planner with the American Institute of Certified Planners and a professional planner in New Jersey, Rush earned her bachelor’s in landscape architecture from Michigan State University and her master’s in urban planning from Columbia University. Her projects have received awards from a diverse membership that includes the American Institute of Architects (AIA), the National Trust’s Main Street Program, the American Society of Civil Engineers (ASCE) and the American Council of Engineering Companies (ACEC). Urban provides planning, design, and construction services for highways, bridges, railroads, buildings, transit, airports and ports, in addition to environmental consulting. An ISO 9001:2015-certified firm, Urban maintains 15 offices in Pennsylvania, New Jersey, New York, Delaware, Maryland, Connecticut, Texas and California.

Enterline is a member of the Pennsylvania Bar Association and its Collaborative Law Committee and Alternative Dispute Resolution Committee. He also served as the past president of the Collaborative Professionals of Northwest PA and is a member of the International Academy of Collaborative Professionals, Association on Conflict Resolution. Enterline is a graduate of McDowell High School, Ithaca College and the Vermont Law School.

Your local seed source

ernstseed.com sales@ernstseed.com 800-873-3321

People. Opportunity. Cung Edge Technology. Together we are “Turning” Challenges Into Soluons. American Turned Products specializes in the precision machining of high volume, highly complex components for the Defense, Automove, Fluid Power, Oil & Gas, and other markets domescally and worldwide.

Visit us at: WWW.ATPTEAM.COM

mbabizmag.com • MAY 2019

YOUR BUSINESS: THE NEXT GENERATION For most family businesses, planning for succession is a tough and critical challenge. Yet succession planning can also be a great opportunity to create a multigenerational institution that embodies the family’s values for generations to come. Attorneys at Knox Law provide guidance and counsel helping you to address issues related not only to ownership succession, but also concerns involving estate planning, tax planning, workforce, real estate and intellectual property — planning that will deliver lasting value to your family.

Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | North East | Pittsburgh | Jamestown, NY 814-459-2800 | www.kmgslaw.com

MAY 2019 • mbabizmag.com

AERO TECH DESIGNS CYCLEWEAR

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

AMERICAN TINNING & GALVANIZING

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

AMERICAN TURNED PRODUCTS

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

CUSTOM ENGINEERING COMPANY

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

ERICSON MEMORIAL STUDIOS

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

MAY 2019 • mbabizmag.com

ERIE PRESS SYSTEMS

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

ERIE STRAYER COMPANY

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

GREAT LAKES CASE & CABINET

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

HARMONY CASTINGS

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

HOWARD INDUSTRIES

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

Pennsylvania’s manufacturing industry comprises more than 14,400 establishments and more than 560,000 employees that represent both traditional and additive manufacturing. Along with national and international companies, small and medium size businesses have a significant presence here, and help continue the state’s manufacturing heritage. Here are just a few of those companies that are proud to manufacture in the Keystone State:

REHRIG PACIFIC COMPANY

INDUSTRIAL SALES & MANUFACTURING

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

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

RIDG-U-RAK, INC.

LORD CORPORATION

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

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

SMITH PROVISION COMPANY, INC.

MICRO MOLD CO., INC.

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

PHB INCORPORATED

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

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

URBAN ENGINEERS

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

THE WARREN COMPANY

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

PLASTIKOS, INC.

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

X-CELL TOOL AND MOLD, INC.

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

REDDOG INDUSTRIES, INC.

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

mbabizmag.com • MAY 2019

Carving Out A Bright Future!

Flexcut Carving Tools was founded in Erie 30+ years ago. Today, we manufacture over 300 unique, high-quality woodcarving tools used by professional carvers and hobbyists around the world. Recently, we entered a new market with the launch of our Hawthorne Knife Collection. The collection features rugged bushcraft field knives for outdoor sport, work and adventure. Over the years weâ&#x20AC;&#x2122;ve stayed committed to providing our customers with excellent customer service and continuous product improvement. We believe in investing in our employees as well as state-of-the-art manufacturing equipment and processes to help give us a more competitive edge and to carve out a brighter future. We are the largest woodcarving tool and knife manufacturer in America and very proud of our team and the superior quality of our made-in-Erie, made-in-the-USA products!

Flexcut.com

8105 Hawthorne Drive, Erie, PA

MAY 2019 â&#x20AC;˘ mbabizmag.com

From precision machining to turnkey process and assembly systems, Automated Concepts and Tooling provides manufacturing solutions and support to businesses throughout the United States, Mexico and Canada. Serving customers in the following markets:

• Aerospace • Automotive • Agriculture

• Electronics • Medical • Consumer Plastics

Core competencies include the designing, engineering and building of:

• • • • •

Process and assembly automation systems Jigs Fixtures Controls engineering Robotics

ACT

www.acat.us.com

14500 Willey Road • Waterford, PA 16441 (814) 796-6302

WE EXCEL AT PRECISION MACHINING FROM PROTO-TYPE THROUGH PRODUCTION LOT QUANTITIES.

85 YEARS. 3 GENERATIONS.

ONE TRUSTED NAME. AT LINCOLN RECYCLING, we’ve been buying production scrap

from industrial customers since 1932.

Our real value lies in our expertise and in our ability to help customers streamline processes — and grow or even create new profit centers. We’ll help you develop a scrap management plan that will not only provide you with greater internal efficiencies, but also maximize the market value of your material.

Howard and Barney Lincoln at Lincoln Metal in 1973.

Erie 1602 Selinger Ave.

Meadville 986 French St.

(814) 838-7628 lincolnrecycling.com

Millions of Reasons Northwest Industrial Resource Center (NWIRC) is driven by the impact our projects and customized training solutions have on small- and mid-sized manufacturing companies across the region. We continue to help manufacturers achieve top and bottom-line growth through continuous improvement, advanced manufacturing technologies, customized workforce training, and skills development programs. As one of seven IRCs comprising the PA Manufacturing Extension Partnership, we’re proud of the impact we are having across the state.

PA MEP - Fiscal Year 2018 Impact* $751.5M New and Retained Sales $182M Invested in Expansion & Modernization $71.3M Operating Cost Savings 6113 Jobs Created and Retained

www.nwirc.org *All impact results are gathered from clients through a voluntary client survey administered by an independent third-party (Fors Marsh Group) under contract with the U.S. Department of Commerce.

MAY 2019 • mbabizmag.com

ON THE HILL | WAGES

Minimum Wage or Minimum Business? Raising Wages Will Negatively Impact Employers, Won’t Eliminate Poverty

Jezree Friend is the Manufacturer & Business Association’s senior government relations representative and is responsible for developing legislative priorities and strategies; encouraging membership grassroots activities; and lobbying on behalf of a pro-growth, pro-business agenda. Contact him at jfriend@mbausa.org. It took one month after re-election for Governor Tom Wolf to show his teeth to the Pennsylvania business community. As we all know, the government knows best how to operate private business. So, when Wolf demands small businesses immediately increase the wages of those with minimum to zero skill by 65 percent in July and 107 percent by 2025, rest assured he has our best interests at heart. Q: What is a wage? A: The price of labor. This negotiation is exclusive to the employer and employee based on a mutual agreement, driven by the market rate value for services. Any increase should be the direct result of an improved skill set, enhanced productivity or a company’s desire to retain a valuable employee. Unfortunately, in Pennsylvania, this increase is only because the government unapologetically demands it. The governor claims his motivation for a regulated increase is to reduce poverty,

decrease state welfare payouts and, my favorite childhood excuse, others are doing it. However, a National Bureau of Economic Research case study, which examined Seattle’s minimum wage increase of $15 an hour, found the “reduction in hours cost the average employee $130 per month, while the wage increase would recoup only $56 of this loss.” After the gains and losses, the average worker had a “net loss of $74 per month” or $888 a year, a 3-percent annual pay decrease. Minimum Wage for Entry Level Let’s address the real issue here, minimum wage jobs have never existed to be one’s career. The benefits of these positions are to increase employee entry into the workforce, gain basic work skills and encourage startups. Wolf contends this increase will save the state in welfare benefit payouts. If true, I formally request state spending to equally decrease by the 65-percent burden placed on small business owners. Consider this scenario: A small business owner nets $40,000 a year with two employees, each paid $10 an hour. A minimum wage hike to $15 creates $20,800 in new expenses for the employer. Given no terminations, hour cuts or other price increases, the owner’s new salary would be $19,200, while each employee would earn $31,000. I propose we eliminate poverty all together and make the minimum wage $50 an hour, surely artificially inflating wages won’t have a negative economic impact. Demographics and Poverty In a March 2019 report by the Pennsylvania Department of Labor & Industry, only 0.3 percent of the state’s working population earn minimum wage as part of their

full-time employment. This is in addition to the state benefits that supplement their living expenses include paid housing, transportation, home heating expenses, rent rebates, nutrition assistance, health insurance and medical care. According to research by the Cato Institute, Pennsylvania pays out an average additional $29,817 in benefits to the minimum wage earner. The report explains those earning minimum wage or less represent only 1.6 percent of all workers; of these workers, the majority are 16-to-24-years old, have a high school education or less, and have never been married. The governor’s policy hurts small business owners and removes the opportunity for those looking to get a start in the workforce at a time when businesses need them the most. The Independent Fiscal Office reports raising the minimum wage would destroy 33,000 jobs in Pennsylvania. Even Harvard’s School of Business reported that when it came to the restaurant industry, each $1-anhour increase in the minimum wage would result in a 4-percent to 10-percent increase in the likelihood of a restaurant closing. But, what do they know, right? Governor Wolf’s mandatory government intervention on the minimum wage misses the mark entirely. Increased burdens on small businesses will make it harder for the young and inexperienced to get jobs. The consequence will be fewer hours, as employers tread water to remain viable, and fewer entrepreneurs will open businesses out of fear of the increased risks. Political talk is nice, but a company that does not exist cannot employ anyone. No one will be able to get that “better” job until they have their first one. mbabizmag.com • MAY 2019

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HR CONNECTION | WORKPLACE TRENDS SURVEY: MANUFACTURER OPTIMISM HIGH DESPITE CONCERNS OVER HEALTH CARE, TRADE

Optimism among U.S. manufacturers remains high despite continued workforce concerns brought on by the tight labor market, rising health-care costs and the state of the nation’s infrastructure, according to a recently released quarterly survey by the industry’s top trade group.

5 Ways to Prevent Common Employee Injuries in the Manufacturing Industry

The report by the National Association of Manufacturers (NAM) comes as fears of a potential economic recession in 2019 subside among some experts. Nearly 90 percent of manufacturers have a positive outlook for their business, up from 69 percent in 2016 but down year-over-year, according to NAM’s recent survey of 14,000 U.S. companies. It is the ninth straight quarter of record optimism, the group says. “Manufacturing in the United States is on the rise, and manufacturers are confident about the future,” said CEO Jay Timmons. “We have to get serious about infrastructure investment and attracting, recruiting and training our people for the high-tech, high-paying modern manufacturing jobs.”

When considering workplace injuries or illnesses, we often associate them with jobs like construction, firefighting or mill work, but the reality is, risks can be found in any workplace setting. From assembly lines to desk jobs, injuries happen. Each year, the Occupational Safety and Health Administration (OSHA) publishes a list of the top health and safety violations broken out by industry. While OSHA compliance is extremely important, evaluating risk to your employees’ wellbeing is essential. To help employers promote a culture of safety and avoid injuries and fatalities, we’re counting down the top five common OSHA violations in the manufacturing industry and provided tips for prevention: 5. Forklifts Can Cause Injury Too – It’s easy to forget the shear weight and magnitude of a forklift. These machines are often overlooked due to their size and the commodity of their use. Make sure to routinely stress the importance of pedestrian safety and safe work practices when using forklifts. 4. One Size Does NOT Fit All – Thousands of workers become ill each year, even when provided with respirators. To ensure the respiratory health of each worker, evaluate each workplace hazard and ensure adequate protection is provided. Be sure to properly fit test and train each affected employee annually. 3. Communication is Key – All hazards need to be properly communicated to employees and clearly labeled to prevent injury. Make sure your containers are labeled and employees have access to Safety Data Sheets (SDS). Training should be completed upon initial employment and whenever a chemical is introduced or changed. 2. Lock-out Tag-out, Try-out! – Turning off the power or locking out a switch does not guarantee safety. Ensure each energy control procedure has a try-out step to mitigate the potential for unexpected activation, start up or release of stored energy. 1. Machine Guarding Saves Lives – All new equipment needs reviewed for risk of pinch, nip and pull points before putting it into service, making routine inspections and assessments critical. Get employee insight if guarding needs to be replaced. After all, they are the ones that operate the equipment!

Kasey Stewart, CSP is a manager of Health and Safety at Compliance Management International, a leading provider of environmental, health, and safety services. He has extensive management experience overseeing employee health and safety for various clients including those in the manufacturing, construction, utility and other industries. Contact him at kstewart@complianceplace.com.

mbabizmag.com • MAY 2019

LEGAL Q&A | GET ANSWERS WHAT SHOULD EMPLOYERS DO IF THE FLSA (FAIR LABOR STANDARDS ACT) SALARY THRESHOLD TEST FOR OVERTIME EXEMPTIONS IS INCREASED? With an increase in the salary threshold for overtime exemptions, employers may need to change some of their exempt employees to non-exempt status or alternatively increase salaries of affected employees. Changing employees from exempt to non-exempt status could increase overtime expenses, affect employee morale and turnover if such changes are viewed as demotions, change benefits and require more time for recordkeeping. Such a change could also result in the need to hire part-time workers or redistribute work to eliminate the potential for overtime situations. The alternative option would be for employers to increase the salaries of affected employees, but with salaries increasing, some businesses may need to downsize.

Labor Department Proposes New Overtime Threshold In October 2018, the U.S. Department of Labor (DOL) announced its Regulatory Agenda, noting it would release a Notice of Proposed Rulemaking in early 2019 to begin the process of updating federal overtime regulations. That time has come and, as of March 7, 2019, the long-awaited proposal was released. The proposal’s aim is to increase the minimum annual salary threshold to $35,308 for employees to be exempt from FLSA’s overtime requirements as executives, administrative or professional employees. If the proposed rule is finalized, employees who are paid a salary of less than $679 per week will be eligible for overtime pay for all hours worked beyond 40 in a workweek. Furthermore, the proposal would raise the annual total compensation threshold for the highly compensated employee exemption to $147,414 from the current $100,000. The proposed rule would, however, allow employers to use nondiscretionary bonuses and other types of incentive compensation, such as commissions, to satisfy up to 10 percent of the salary level.

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Unlike the regulations proposed under the Obama administration in 2016, these proposed regulations do not include an automatic increase to the salary threshold, but simply a commitment to review and update the salary threshold periodically through issuing proposed regulations and allowing public comment. The proposed regulations leave unchanged the duties required to make employees exempt. Even though the new proposed rule has been released, it could still be awhile before it goes into effect. The DOL will need to publish the proposed rule, receive public comments and review those comments first. The DOL has indicated that it intends to publish a final rule before the 2020 presidential election cycle. Currently, the salary threshold test is set at $455 per week or $23,660 annually. The Manufacturer & Business Association will continue to monitor further developments as they occur.

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

MAY 2019 • mbabizmag.com

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JEFFERSON CIVIC LEADERSHIP ACADEMY 2019

The Jefferson Educational Society, Erie’s think tank for community progress located at 3207 State St., has begun accepting applications on a rolling-admission basis for the 2019 Jefferson Civic Leadership Academy through Friday, May 17 or until the cohort capacity is met. This unique program prepares Erie professionals, ages 25 to 45, for meaningful, fulfilling and impactful engagement in their community by providing a dynamic environment that fosters teamwork, growth and learning through a transformative experience for those seeking to be change-agents for their community. Employers benefit by having employees enhance their leadership skills while simultaneously developing their abilities to work in teams. In addition, employers gain access to a broad network of prominent contacts, as their employees participate in this collaborative experience.

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Corporate Headquarters: 2425 West 23rd Street Erie, PA 16506 Phone: 814/878-4400 Email: info@plastekgroup.com Website: www.plastekgroup.com

The Plastek Group is a global injection mold builder, molder, assembler and decorator founded and located in Erie, Pennsylvania. The company has operated continuously since 1956 and has a client list comprised mostly of Fortune 500 companies, including Unilever, Procter & Gamble, Nestle, Danone, Revlon and many others. Major industries served include consumer goods, health and beauty, food and beverage, and pharmaceutical. Major products include cosmetic jars, deodorant stick packages, food and beverage caps, shampoo and conditioner caps, eye dropper bottles and caps, safety razor parts, baby wipes packages and laundry caps, as well as several other assembled components. Growth Through the years, the company has grown through the hard work and dedication of its many employees. What started out as a small injection mold building company in 1956 has become one of the leading injection molding companies in the United States and the world. This growth has come primarily through organic, internal growth with new customers and new projects — not through acquisitions. To remain competitive, Plastek invests heavily in automation and other labor-saving equipment for all its mold making and molding/assembly/ decorating operations. This allows the company to fight both domestic and foreign competition and keep people employed. It is also a core component in providing a high-quality, reliable supply chain to Plastek’s customers. Locations With manufacturing operations in Erie, Pa.; Hamlet, North Carolina.; Mansfield, United Kingdom; Indaiatuba, Sao Paulo, Brazil; and Queretaro, Mexico, Plastek is a global supplier to many of its customers. Plastek’s goal is to be where customers need them in mutually beneficial relationships. Each international division was set up and supplies local markets for their customers. All products made in those international divisions stay in the home market and are not taking jobs from Americans. Dedicated Team The key to Plastek’s success is its hard-working and dedicated workforce. The culture and work ethic is common in all divisions, worldwide, and is focused on satisfying the customer and making them want to come back to Plastek for more.

The Plastek Group has been a family owned and operated business since 1956. Shown here are, front row, from left: President and CEO Dennis Prischak, Chairman Joseph Prischak and Vice President of Global Tooling & Engineering Douglas Prischak. Back row, from left, are: Vice President of Manufacturing Daniel Prischak and Vice President of Sales and Marketing Donald Prischak.

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It is an extremely competitive plastics industry with very little margin for error. Plastek’s employees know this and strive, each and every day to keep the customer satisfied and coming back. That focus will continue to keep Plastek moving forward into the future.

mbabizmag.com • MAY 2019

OUR LEADERS MAKE A DIFFERENCE

Maureen Barber-Carey, Ed.D. Executive Vice President

Pamela J. Baker Vice President Program Development/ Family Focused Services

Kathleen B. Fling Vice President of Human Resources

Laurie Callaghan Chief Information Officer

Jean Nielsen, C.P.A. Chief Financial Officer

Bridget P. Barber Vice President Health Services & External Affairs

Debbie Burbules Vice President of Operations

Jennifer L. Kennedy Vice President Governance, Risk Management, Compliance and HIPAA

Carolyn Kontis Vice President, Intellectual Disabilities Services

Since our founding by esteemed Erie educator Dr. Gertrude A. Barber, women have played an integral role in guiding the mission of the Barber National Institute. They are essential members of a leadership team that advances innovative, quality services that are making dreams come true for our children, adults and families.

more information about our leadership team and services, visit BarberInstitute.org 36For MAY 2019 â&#x20AC;˘ mbabizmag.com

EVENTS & EXTRAS | NETWORKING & MORE

The Manufacturer & Business Association, in conjunction with the Business Magazine, the Barber National Institute and sponsors Highmark and Northwest Bank, recently presented the Women in the Workplace IMPACT Luncheon on April 11 at the Associationâ&#x20AC;&#x2122;s Conference Center in Erie. For exclusive photo coverage, visit www.mbausa.org.

BUSINESS MAGA ZINE

r-Carey, Keynote speaker Maureen Barbe of the Barber Ed.D., executive vice president t how vision National Institute, spoke abou ess, and opportunity can impact busin leadership and life.

Nina Ferraro of Highmark, which sponsored the event, introduced Dr. Barber-Carey to the stage.

More than 100 guests attended the April 11 luncheon.

Representatives from sponsor

Northwest Bank at the event.

Highmark at the event.

Executive leadership and other professional staff from the Barber National Institute showed their support.

Potratz Floral & Greenhouses donated the IMPACT centerpieces. Potratz is marking its 100th year in Erie in 2019.

mbabizmag.com â&#x20AC;˘ MAY 2019

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