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What does the economic forecast look like for 2022? What are the real facts and figures behind global, national and local economic trends, and the impact on our region? Join us as local economist Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) and associate professor of Economics at Penn State Behrend, provides an in-depth look at these timely topics and more, during this dynamic virtual presentation.
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BUSINESS
VOL. XXXIV NO. 11 | NOVEMBER 2021
MAGAZINE
SPOTLIGHT Q&A:
WM. T. SPAEDER CO. PART OF ‘CONSTRUCTION RENAISSANCE’
SPECIAL SECTION:
116TH ANNUAL EVENT, 2021 MFG DAY COVERAGE
40 YEARS AS A LEADING PROVIDER OF ELECTRONIC SECURITY AND FIRE ALARM SYSTEMS
KEEPING IT LOCAL Pictured are (left) Brock Anderson III, chairman and CEO, and (right) John C. DiMario, president, Bonbright Distributors, Inc. — one of the largest beer distributors in the eastern United States.
Based in Dayton, Ohio, Bonbright Distributors purchased Glenwood Beer in 2018. And with the help of Marquette Business Banking, they broke ground on a state-of-the-art, 95,500-square-foot distribution warehouse in Fairview earlier this year. “Once complete, it’ll be the new home of Allegheny Beverage Company,” says Brock Anderson. “We know this modern facility will help us streamline daily operations and position us for continued growth.” Currently serving nine Ohio counties and 13 counties in Pennsylvania, they also know a thing or two about keeping things local. “We wanted a bank with local expertise to help us navigate the complexity of this project,” according to John DiMario. “And the team at Marquette really came through when we needed it most.” Talk with us at 814-314-8214. Or visit MarquetteSavings.bank/business to learn more.
FEATURES WHAT’S INSIDE | FEATURED STORY
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A Barometer on Building Construction industry provides strong economic foundation.
COVER STORY | LOCAL PROFILE
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The Wilkins Company Owners Cameron and Vanessa Wilkins share the remarkable growth and vision behind one of the region’s leading providers of electronic security and fire alarm systems as it marks its 40th anniversary in 2021.
SPOTLIGHT Q&A | INDUSTRY
7 DEPARTMENTS 10
BUSINESS BUZZ
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PEOPLE BUZZ
WHAT’S NEW
EVENTS 21 NETWORKING AND MORE
AWARDS AND PROMOTIONS
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HR CONNECTION
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HR Q&A
EDITORIAL LEGAL BRIEF | REAL ESTATE
A recap of the MBA’s largest HR & Employment Law Conference held at the Bayfront Convention Center in Erie, Pennsylvania.
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Contributing Writers Rose Bruno Michael Fiaschetti Jezree Friend Michael A. Micsky
Feature Photography R. Frank Media Addtional Photography R. Frank Media Casey Naylon David Thornburg Karen Torres Erie Insurance Media Services iStockphoto.com
Is relief from taxing body assessment appeals on the way for commercial property owners? Michael A. Micsky
ON THE HILL | SOLUTIONS
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Executive Editor Karen Torres ktorres@mbausa.org
Jay Spaeder, president of the Wm T. Spaeder Co., Inc. in Erie, Pennsylvania, discusses the company, the regional construction market and the “construction renaissance.”
Why Pennsylvania’s small businesses need leaders to address health insurance problems. Jezree Friend
SPECIAL SECTION |
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
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Advertising Sales Frank Mehler 814/833-3200 fmehler@mbausa.org
ASSOCIATION EVENTS
See exclusive coverage of the 2021 MFG Day celebration and the Association’s 116th Annual Event.
David Thornburg 814/833-3200 dthornburg@mbausa.org
On the Cover: The Wilkins Company owners, Cameron and Vanessa Wilkins, celebrate their family business’ 40th year with employees along Erie’s bayfront. The Wilkins family has a proud history in the Flagship City dating back to 1818 with the company founded in 1981. 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
Manufacturer & Business Association Headquarters: 2171 West 38th Street Erie, PA. 16508 Pittsburgh: 600 Cranberry Woods Drive, Suite 190 Cranberry Township, PA 16066 814/833-3200 |800/815-2660 | www.mbausa.org
© Copyright 2021 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 • NOVEMBER 2021
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First Choice Contractors & Construction Managers Since 1906 814.454.7147 | www.eeaustin.com EE Austin & Son offers a dynamic management team committed to providing construction excellence. Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906. EE Austin & Son remains steadfast in its century old promise to... “Do the right thing...all the time.” It’s the Austin Difference.
Industrial Education • Retail Hospitality • Concrete Institutional • Healthcare
A Barometer on Building
WHAT’S INSIDE | FEATURED STORY
CONSTRUCTION INDUSTRY PROVIDES STRONG ECONOMIC FOUNDATION Construction firms of all sizes have shown remarkable resilience during the pandemic, and generally appear optimistic about the economy and their prospects for growth — which is good news for not only the community but employers too.
While construction companies continue to face supply chain disruption as a result of COVID-19, these companies are more optimistic (56 percent) than the national average (52 percent), expecting overall economic conditions in the United States will improve, according to a recent study. The results show that construction firms tend to see improving finances in the year ahead. About 66 percent said they expect revenues to increase, compared with an average of 55 percent for all sectors, and only behind that of retail (67 percent). The construction industry also expects profits to rise, with 52 percent saying so, compared with an average of 45 percent, and trailing only retail (67 percent) and manufacturing (57 percent). The findings are part of a 2021 Business Barometer report that provides an in-depth study into the mood, mindset and strategic priorities of nearly 1,200 leaders at small and mid-size companies across the United States. The survey breaks down results into seven major industries.
Construction firms also said they will continue to retool their approaches over the next year. Remarkably, 73 percent said they plan to make significant changes to pricing, more than any other sector, with the others trailing behind, such as manufacturing (50 percent), business services (49 percent), and wholesale (48 percent). About 34 percent said they are likely to take on debt to grow in the coming 12 months, versus 29 percent of all those polled. About 31 percent are considering increasing their real estate footprint, similar in inclination to other industries (32 percent).
area’s most respected family businesses and as a leading provider of electronic security and fire alarm systems. We’ll also to talk to Jay Spaeder of Wm. T. Spaeder Co. about the mechanical contracting firm and its part in the growing “construction renaissance” in the region. Plus, don’t miss this month’s Legal Brief as we discuss the importance of staying in the know when it comes to property tax assessments and appeals. The MBA also offers numerous safety courses to help keep your team members safe! To learn more, visit www.mbausa.org.
In this edition of the MBA Business Magazine, we’ll highlight some of the companies — contractors, subcontractors and others — that are essential building blocks when it comes to contributing to our region’s economic growth. This year, for instance, The Wilkins Company in Erie, Pennsylvania, is marking its 40th year as one of the
GROUNDBREAKING IMPACT
mbabizmag.com • NOVEMBER 2021
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COVER STORY | LOCAL PROFILE The Wilkins Company is marking its 40th anniversary in 2021. The company was founded in 1981 in Erie, Pennsylvania by Richard Wilkins and his wife, Carol. Today, the company is run by their son, Cameron, and his wife, Vanessa, along with a dedicated team of 38 employees.
40 Years as a Leading Provider of Electronic Security and Fire Alarm Systems Cameron and Vanessa Wilkins are proud to be the seventh generation of the Wilkins family to call Erie, Pennsylvania home. The couple is raising their three children here while running their family business, The Wilkins Company, a leading provider of electronic security and fire alarm systems. It’s certainly been an exciting year for the Wilkins family and their team members as the company marks its 40th anniversary in 2021. With 38 employees and $5 million in sales annually, The Wilkins Company has navigated a successful succession and is experiencing record growth. In fact, over the past seven years, The Wilkins Company has embraced strategic acquisitions and partnerships with other trusted organizations to expand its services and product line in four main areas: fire alarm, access control, video surveillance and intrusion alarm systems.
Today, The Wilkins Company comprises RKS Equipment, Bryson Security, New Sentry Systems and the MECCO Alarm family of customers and team members. The company is also a strategic partner of Edwards, a vendor and leader in fire and life safety equipment. The partnership has helped The Wilkins Company expand its customer base — western PA from Erie to State College and the surrounding areas of western New York and northeast Ohio — to now Pittsburgh and southwest PA as well. Counted among Wilkins’ customers are homeowners and businesses — a mix of contractors, hospitals, nursing homes and schools to manufacturing, retail facilities, office buildings and more. Projects range from access control systems and video surveillance to handling the fire alarm installations for the multimillion-dollar UPMC Hamot Patient Care Tower and Erie Insurance Thomas B. Hagen Building in Erie as well as The Standard, a new, 12-story dormitory located in State College, Pennsylvania. As President Cameron Wilkins explains, customers choose The Wilkins Company for its products and services but also for its unparalleled expertise and support. “As a life safety systems integrator, we create safe space and send help where it’s needed,” he says. “There’s not another presence in our industry — national, regional or local — that has as many professionals with boots on the ground in northwest PA that is capable of doing what we do.”
A Call to Service
Vanessa and Cameron Wilkins are the owners of The Wilkins Company.
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NOVEMBER 2021 • mbabizmag.com
Wilkins has been a respected name in the Erie area since Captain Thomas Wilkins first arrived in Flagship City in 1818. Captain Wilkins sailed aboard many Great Lakes vessels and was appointed by President Abraham Lincoln to serve as collector of the Port of Erie in 1861. The first three generations of the Wilkins were captains who sailed the lake, but it was Richard Wilkins, Cameron’s father, who steered the family in a new direction, combining his entrepreneurial spirit and his call to serve.
The Wilkins Company, which services homes and businesses, has four main product areas including fire alarm, access control, video surveillance and intrusion alarm systems.
From left, Paul Bryson (Bryson Security, Inc.), Tim Furman (New Sentry Systems), Cameron Wilkins (president of The Wilkins Company) and Kurt Shenk (RKS Equipment) are focused on providing expertise, service and support in the area of electronic security and fire alarm systems.
Richard Wilkins, then a Millcreek Township police officer, dreamed of getting his pilot’s license and started installing intrusion alarm systems as a way to fund his hobby. However, as Richard soon discovered, his security venture was not only successful but increasingly in demand thanks to word of mouth. At that point, Richard made the tough decision between “badge or business,” and retired from law enforcement to dedicate himself to The Wilkins Company full time in 1981. Richard and his wife, Carol, ran the business together — Richard on the technical side and Carol handling the books — with a small field of technicians and their young son Cameron helping out. Over the years, Cameron Wilkins worked his way up from stuffing and mailing invoices to become a part-time technician, learning the nuts and bolts of the business while attending school. In 2006, Cameron graduated from Indiana University of Pennsylvania (IUP) with degrees in finance and economics, joining the family operation full time. He soon leveraged his knowledge and experience to grow The Wilkins Company fourfold for the next eight years until he took over as president in 2014. “Cameron is very much a visionary,” says his wife Vanessa, also an IUP graduate who oversees the company’s finances. “Sometimes everyone feels like we’re buckling our seat belts on a rocket ship, but he very much has that mindset and that’s an asset. Not everyone is willing to be a risk taker like that.”
Strategic Moves
Part of having a visionary leadership is knowing how to navigate strategic growth. A major game-changer for The Wilkins Company has been a successful series of acquisitions and partnerships, starting with local competitor RKS Equipment in January 2014. RKS had been operating in the Erie area since 1976 by brothers and Ralph and Dave Shenk, and since 1990 by Ralphs’s son Kurk — still a member of The Wilkins’ team.
A Secure Future
Cameron, who oversees the operations, says the support of his wife and team members can’t be overstated when it comes to The Wilkins Company’s success. For example, one of Cameron’s first hires is still part the team, and the company already has hired 15 new team members — and is actively recruiting new ones — since the COVID-19 pandemic began in March 2020. “We’re building a really good team,” says Cameron, “and we have very good leadership, stakeholders and consultants.” Adding to its strength in service is the fact that The Wilkins Company is also a strategic partner of Edwards, a leader in fire alarms and life safety equipment. Through that relationship, the company is actively looking to grow relationships with electrical contractors, architects, engineers and building owners in the Pittsburgh and southwest Pennsylvania markets. The Wilkins Company is also branching out in terms of installations, so its professionals can now install not only locks and alarms, but handle the entire installation of doors, frames and hardware too. The company also offers remote monitoring of alarm system and inspection services, including those required annually for fire alarms. Cameron Wilkins, who was recognized in July 2021 with a Young Alumni Achievement Award by Indiana University of Pennsylvania, certainly has reason to be excited about what the future holds for The Wilkins Company. “I feel like passion is what gives us such success here, and I feel like that level of care will expand to wherever we go next — be that in Pittsburgh or more in western New York,” he says. “We definitely want to contine our growth.”
“In the first full year of business after the acquisition, gross sales were greater than the combined previous years of the separate companies,” explains Cameron Wilkins. “This was a result of The Wilkins Company being able to leverage the newly acquired customers through additional service offerings.” A year later, in December 2015, Cameron helped to expand the company’s visibility and reputation by being named regional director for the Board of the Pennsylvania Burglar and Fire Alarm Association (PBFAA), a position he still holds. He also earned the 2018 PBFAA Special Effort Award for his contributions to the state association. Then, on January 12, 2018, Cameron and Vanessa purchased the remaining stock of The Wilkins Company from Cameron’s parents, who retired the same day. The buyout set in motion even more acquisitions that would positively position the company for the present day.
“Creating safe space and sending help where it’s needed”
Founded in 1981, The Wilkins Company, headquartered at 3255 West 38th Street in Erie, Pennsylvania, is a regional electronic security and fire alarm systems specialist that offers: • Intrusion alarms • Fire alarms • Access control • Video surveillance The company also has a monitoring center and provides inspection reports, including those required annually for fire alarms.
On January 31, 2019, The Wilkins Company acquired Bryson Security another local competitor through a seller financed asset purchase agreement. Wilkins Company employee Paul Bryson founded Bryson Security in 1993.
Today, The Wilkins Company comprises RKS Equipment, Bryson Security, New Sentry Systems and MECCO Alarm, and is a strategic partner of Edwards, a leader in fire alarm and life safety equipment.
Most recently, on July 1, 2021, The Wilkins Company completed its third acquisition of a local security integrator, New Sentry Systems. New Sentry was founded in 1998 by Tim Furman and who, in 2006, acquired MECCO Alarms a local Erie alarm installation company, which was started in 1979.
Website: www.thewilkins.company
“All of those companies had been operating independently for a number of years, but we’ve been able to bring them under one roof to keep the customers served by a local presence as part of The Wilkins Company,” Cameron Wilkins states.
Phone: 814/833-6376
mbabizmag.com • NOVEMBER 2021
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SPOTLIGHT Q&A| INDUSTRY
Wm. T. Spaeder Co. Part of ‘Construction Renaissance’ It goes without saying that construction is a major contributor to the U.S. economy. The industry has more than 733,000 employers with more than 7 million employees and creates nearly $1.4 trillion worth of structures each year. Construction is also one of the largest customers for manufacturing, mining and a variety of services. Here, Jay Spaeder, president of the Wm. T. Spaeder Co., Inc. in Erie, Pennsylvania, discusses the company, the regional construction market and the “construction renaissance.” Wm. T. Spaeder Co., Inc. has been a leader in comprehensive mechanical contracting for more than 100 years. Tell us about how the family owned company got its start. My grandfather, William T. Spaeder, began his business working out of his parents’ home in 1914. He took a brief hiatus to join the Navy during WWI. After returning home to Erie, he married Julia Lochner and started a family. He built their home on 25th Street in Erie, PA, and in the backyard, constructed his first shop made from WWI army surplus materials. Some of his earliest employees were his brothers Lawrence and Carl. From that point, the business continued to grow. He and Julia had 11 children, and all but two worked in the business. Today, we continue their legacy. Even though many different people from a variety of backgrounds work for Spaeder, we look at them all as part of our work family — a team, dedicated to our customers and striving towards a common goal of offering quality craftsmanship and sharing in our family values. Over the years, Wm. T. Spaeder Co. has evolved from a small plumbing firm into one of the largest and most respected contractors in northwest Pennsylvania. Tell us about the firm today. Spaeder employs more than 200 people including both office workers and union personnel that provide a vast array of services. Our primary focus for work
is within 100 miles of our company headquarters in Erie, but we will travel for the right project. We also have satellite offices in Buffalo and North Pittsburgh, which have helped us continue to expand in those markets. We have been contracted in places as distant as Las Vegas, Nevada and have shipped fabricated materials as far as Egypt. Tell us about the services Wm. T. Spaeder Co. provides. Wm. T. Spaeder Company is a comprehensive mechanical contractor. We focus on plumbing, mechanical, industrial process piping, wastewater treatment, and fire protection for our target markets. There is no job too small or large that we will not consider bidding. We have done everything from residential homes to schools to large/heavy industrial work. We have a group of specialists that focus on service repair and maintenance work for a wide range of disciplines, including plumbing, HVAC, kitchen equipment, water treatment and fire protection. Wm. T. Spaeder Co. has played an integral role in numerous commercial and institutional projects over the years. Tell us about some of your most recent work. Our company is proud to play a part in many of the new and ongoing projects in Erie and the surrounding areas. We performed the plumbing and HVAC work on the new Erie Insurance Office Building. It was one of the largest commercial jobs for our company.
Other recent commercial jobs include the Erie Insurance Arena plumbing renovation, Warner Theatre fire protection, work on the EDDC renovations, and the UPMC Hamot Patient Care Tower, which included both plumbing and fire protection. We have also completed institutional jobs throughout the campuses of Gannon, Mercyhurst, and Penn State Behrend and were recently the successful low bidder for the plumbing and fire protection at Fairview High School for their new addition. The Millcreek School District has also kept us busy in recent years with various, large projects throughout the school district. The construction industry is a major contributor to the U.S. economy, including the regional market. What do you see as the greatest benefits of the industry in our region? Over the past few years, there has been a sort of “construction renaissance.” Many of the major hospitals in the Erie area (and beyond) have had large construction projects. School projects have been ongoing and have kept us busy. Lastly, the work that is being done downtown with Erie Insurance, Warner Theatre, UPMC ballpark, and the EDDC has been great for our community. With further development along the waterfront, we are excited for Erie’s future, and we hope to continue to be a part of it. For more information, visit wmtspaeder.com.
mbabizmag.com • NOVEMBER 2021
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LEGAL BRIEF | REAL ESTATE
Is Relief From Taxing Body Assessment Appeals On The Way for Commercial Property Owners? classes of property by any “intentional or systematic enforcement of tax laws” was unlawful. While taxing bodies cannot choose only certain classes of properties to appeal, the Supreme Court in Valley Forge did not prohibit the “use of a monetary threshold … or some other selection criteria” by its ruling because those practices were not before the Court. As a result of the Valley Forge decision, local taxing bodies have largely adopted monetary threshold selection criteria, the most common being the difference between a property’s recent sale price and its assessed value. The Pennsylvania Commonwealth Court has consistently upheld such “monetary threshold analysis” as a basis for selecting properties to appeal, as it did in 2020 in Kennett Consolidated School District v. Chester County Board of Assessment Appeals.
Michael A. Micsky is an associate at MacDonald Illig Attorneys and a member of the firm’s Banking & Real Estate and Business Transactions Practice Groups. Whether you have recently purchased real estate for your business or your business has owned property for years, the thought of a local taxing body challenging the assessed value of your property has likely crossed your mind. Despite lingering economic uncertainty surrounding the COVID-19 pandemic, many properties have recently experienced significant increases in value. Rising property values may incentivize local taxing bodies to file real estate tax assessment appeals, seeking to increase revenue by increasing a property’s assessed value resulting in a higher real estate tax bill. A tax assessment appeal can have a significant financial impact on a business, particularly if the business owns valuable commercial property.
Current Law Under the Consolidated County Assessment Law, local taxing bodies in Pennsylvania are afforded the same statutory right to file a tax assessment appeal as the owner of the property. If a taxing body files tax assessment appeals selectively by choosing properties likely to result in the greatest increase in revenue, such as valuable commercial property, it raises concerns under the Uniformity Clause of the Pennsylvania Constitution, which requires that all taxes be “uniform” upon the same class of subjects within the same taxing district. This statutory and constitutional conflict has resulted in much litigation over the years as local taxing bodies, most often school districts, have increased their tax assessment appeals, largely targeting commercial and industrial properties. In 2017, in Valley Forge Towers Apartments N, LP v. Upper Merion Area School District, the Pennsylvania Supreme Court held that taxing bodies cannot single out a specific class of properties, such as commercial or industrial, for appeal. The Supreme Court explained that any disparate treatment between different
Changes on the Way? The tides may be turning in favor of property owners. The Supreme Court agreed to review Kennett to consider whether a monetary threshold of $1 million, which would predominantly result in commercial or industrial properties being selected for appeal, was constitutional. The Court heard argument on April 13, 2021. Additionally, the Commonwealth Court recently held, in Duffield House Associates, L.P. v. City of Philadelphia, that Philadelphia discriminated against commercial taxpayers when the practical outcome of their selection criteria was to target commercial properties. In reviewing Kennett, the Supreme Court will hopefully provide clarification about the interplay of a property owner’s constitutional right to be uniformly taxed, under the Uniformity Clause, and the statutory right of a taxing body to file a tax assessment appeal. Such a ruling has the potential to severely limit the ability of a local taxing body to selectively file assessment appeals, which could be good news for owners of commercial property. If you need assistance with a tax assessment appeal, whether filed by a local taxing body or by you as a property owner, please contact Michael Micsky or any MacDonald Illig attorney at 814/870-7600. mbabizmag.com • NOVEMBER 2021
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BUSINESS BUZZ | WHAT’S NEW
Erie Insurance (ERIE) recently dedicated its newest office building to Chairman of the Board, civic leader and philanthropist Tom Hagen. The new $147 million, 346,000-square-foot building was officially named “The Thomas B. Hagen Building” during a dedication ceremony held recently in downtown Erie. The dedication was attended by Hagen and his family as well as other company and community leaders, The ceremony was broadcast live to more than 6,000 Erie Insurance employees across 12 states and the District of Columbia. Hagen began his career at Erie Insurance as a part-time file clerk on September 15, 1953 — exactly 68 years to the day of the building dedication ceremony — and he retired 40 years later as chairman and CEO of the company. Hagen still serves as chairman of the Board. The Thomas B. Hagen Building is located next to the Erie Insurance Heritage Center, ERIE’s first owned home office building and where Hagen began his career. A close associate of his father-in-law, Erie Insurance co-founder H.O. Hirt, Hagen shared and promoted the business values Hirt set in place in 1925, according to Erie Insurance President and CEO Tim NeCastro. “While this is an amazing architectural addition to our campus and our city, it’s also a monumental tribute to a man who has led Erie Insurance from a small local auto insurer to a Fortune 500 company selling auto, home, business and life insurance with more than 6 million policies in force today,” said NeCastro. Erie Insurance first announced the expansion project in November 2016 and broke ground on the building in the spring of 2017. The seven-story Thomas B. Hagen Building was designed to accommodate up to 1,300 employees and was built to meet LEED (Leadership in Energy & Environmental Design) certification standards. It features vegetated roofs and two pedestrian bridges connecting the new building to the rest of ERIE’s downtown campus. The architect for the project was Albert Kahn and Associates, the construction manager was PJ Dick and the concrete contractor was E.E. Austin & Son. Several other local contractors and skilled craftsmen also worked on the project, including Wm. T. Spaeder.
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NOVEMBER 2021 • mbabizmag.com
The Thomas B. Hagen Building is a $147 million, 346,000-square-foot addition to ERIE’s home office campus in Erie, Pennsylvania.
WALKER FILTRATION INC. CELEBRATES 20 YEARS OF OPERATION IN THE UNITED STATES Walker Filtration Inc., the American division of Walker Filtration Ltd. located in Erie, Pennsylvania, is celebrating its 20th anniversary and its success as a leader in the filtration, vacuum, and drying industries. In 2001, Walker Filtration Ltd., a U.K.-based company, decided to expand operations into the USA. Starting in Erie, Pennsylvania with only two employees and a 4,600-square-foot facility, the U.S. location has grown substantially and is now the largest division within the Walker Filtration group. Since its humble beginnings, Walker Filtration Inc. has been dedicated to serving the local and global filtration markets within the United States, Mexico, Central and South America. The company marked the milestone with a weeklong celebration for employees. Events included a presentation by the senior management team and global colleagues, food trucks, staff recognition and service awards. Richard P. Taylor, general manager and president of Walker Filtration Inc., states, “This is an exciting milestone to be celebrating. I have been with the division since the very beginning and its growth is entirely due to the team efforts of our dedicated employees and the loyalty of our customers. Many of the customers who started with us on day one are still with us on Year 20. I am exceptionally proud of this long tradition of customer satisfaction which is an incredible testament to the high-quality products and support we provide. Moreover, I am also very proud of Walker Filtration Inc.’s growth over the past two decades and see a very bright future ahead for the division.” Walker Filtration Inc. is the American Division of Walker Filtration. Walker Filtration’s corporate headquarters is located in Washington, England. Walker Filtration is an established and recognized leader in advanced filtration, drying
and separation technology. As a pioneer in the industry, Walker Filtration serves over 100 countries worldwide with locations in Europe, United States, Asia and Australia. For more information, visit walkerfiltration.com.
ERIE FEDERAL CREDIT UNION, ERIE TIMES FEDERAL CREDIT UNION ANNOUNCE MERGER APPROVAL
Erie Federal Credit Union (Erie FCU) and Erie Times Federal Credit Union (Erie Times FCU), both headquartered in Erie, Pennsylvania, announced that the two organizations will merge effective January 1, 2022. Erie Times FCU members and its Board of Directors recently voted to approve the merger. The response was overwhelmingly positive. The merger has also been approved by the National Credit Union Association (NCUA) and supported by Erie FCU’s Board of Directors and management. Erie FCU will be the continuing credit union. Erie Times FCU members will have full access to Erie FCU’s diverse products, services and branch locations beginning January 1, 2022. Erie Times FCU was organized in 1935, and is the oldest federal credit union in the Erie County area. The merger will expand Erie FCU’s presence in northwest Pennsylvania, as well as offer Erie Times FCU members additional financial solutions. There will be no layoffs as a result of the merger, but the current Erie Times FCU branch will close. “We’re excited that the members of Erie Times FCU voted in favor of this merger, and on behalf of the Erie FCU Board of Directors and management, we would like to thank the Erie Times FCU Board and staff for their leadership and dedication to the credit union movement over the past 86 years,” said Brian Waugaman, CEO of Erie FCU. Erie FCU has nine area branch locations with total assets of more than $717 million and membership exceeding 67,000. To learn more, visit eriefcu.org.
Photo credit: Erie Insurance Media Services
ERIE INSURANCE DEDICATES NEW OFFICE BUILDING IN HONOR OF THOMAS B. HAGEN
PEOPLE BUZZ | AWARDS AND PROMOTIONS WALKER FILTRATION NAMES NEW MARKETING MANAGER
Walker Filtration Inc. recently promoted Amy Oligeri to marketing manager of the company’s Business and Development department.
MACDONALD ILLIG ATTORNEYS EARN INDUSTRY RECOGNITION
The law firm of MacDonald,Illig,Jones & Britton, LLP in Erie, Pennsylvania recently announced that attorneys Shaun B. Adrian, J. W. Alberstadt Jr., James M. Antoun, Bruce L. Decker Jr., W. Patrick Delaney, John W.Draskovic, David E. Holland, Mark J. Kuhar, Kimberly A. Oakes, Nicholas R. Pagliari, Lisa Smith Presta, Mark J. Shaw, Roger H. Taft, James B. Toohey and Russell S. Warner, partners at the firm, have been selected by their peers for inclusion in The Best Lawyers in America® 2021. Adrian, a senior partner in the firm’s Estates and Trusts Group, is recognized for his work in the area of estates and trusts planning and administration. Adrian concentrates his practice in the areas of estate planning, estate and trust administration, guardianship proceedings, elder law and long-term care planning. Alberstadt, co-chair of the firm’s Banking and Real Estate Group, is recognized for his work in the area of real estate law. Alberstadt concentrates his practice on residential and commercial real estate, economic development, and conventional and tax-exempt financing. Antoun, chair of MacDonald Illig’s Health Care Group, is recognized for his work in the area of health-care law. Antoun advises hospitals, clinics, physicians, dentists and other health-care providers on a wide variety of health law matters. Decker is a partner at the firm and a member of its litigation department. Decker practices primarily in the areas of insurance defense (negligence claims, personal injury claims, underinsured motorist coverage claims), civil litigation, and commercial litigation. Delaney is recognized for his work in the areas of commercial litigation and construction litigation. His practice is concentrated in the area of commercial litigation, including such matters as contract claims, shareholder or partner disputes, construction claims, property damage claims, business torts and Uniform Commercial Code disputes. Draskovic, chair of MacDonald Illig’s Workers’ Compensation Practice Group, is recognized for his work in the area of workers’ compensation. He is also a member of the firm’s Litigation Practice Group and Labor and Employment Practice Group, Holland is co-chair of the firm’s Real Estate Practice Group and is recognized for his work in the area of real estate law. He has a broad practice including residential and commercial closings and leases. Kuhar, a partner at MacDonald Illig, is recognized for his work in the areas of employment law and
labor and employment litigation. Oakes, chair of MacDonald Illig’ s Family Law Department, is recognized for her work in that area of law including divorce, alimony and spousal support, child support, adoption, child custody and visitation, domestic violence, paternity, as well as prenuptial and postnuptial agreements. Pagliari, chair of MacDonald Illig’s Bankruptcy and Creditors’ Rights Practice Group, is recognized for his work in the areas of Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law. Presta, chair of MacDonald Illig’s Litigation Department, is recognized for her work in the area of Medical Malpractice Law — Defendants. Presta handles complex, multi-party litigation, including malpractice cases, breach of contract matters, fiduciary disputes and the defense of employment claims. Shaw, formerly chair of MacDonald Illig’s Environmental Practice Group, is recognized for his work in Environmental Law, including environmental litigation, Act 2, compliance and permitting matters. Shaw also was recently recognized by U.S. News & World Report Best Lawyers® as the 2022 “Lawyer of the Year” for Environmental Law. Only a single lawyer in each practice area and designated metropolitan area is honored as the “Lawyer of the Year,” making this accolade particularly significant. Attorney Taft, past chair of MacDonald Illig’s Labor and Employment Practice Group, is recognized for his work in the areas of Commercial Litigation and Employment Law — Management. As an Of Counsel attorney at MacDonald Illig, Taft concentrates his practice on commercial litigation and employment litigation and is a Fellow of the American College of Trial Lawyers. Toohey, a partner at MacDonald Illig, is recognized for his work in the area of real estate law. Toohey represents and advises individuals, businesses and developers in a wide variety of real estate, oil and gas, and corporate matters.
Formerly serving as the company’s marketing executive, Oligeri’s new role involves overseeing marketing initiatives and brand management for both Walker Filtration Inc. and its customers. Oligeri has been part of the Walker Filtration Inc. staff for almost nine years. An Erie native, she graduated from Villa Maria Academy before attending Gannon University to earn her degree in business administration. Walker Filtration Inc. has been located in Erie, Pennsylvania for 20 years and is an industry leader in compressed air and gas products and technology in the United States, Mexico, Central and South America.
ERIE FEDERAL CREDIT UNION APPOINTS VP OF BUSINESS LENDING
Erie Federal Credit Union recently announced that Nathan Crouch has been promoted to vice president of Business Lending. The role was created to continue further enhancing the business lending department, which has shown strong growth over the past few years.
Crouch will oversee Erie FCU’s business lending team and assist them in providing lending solutions and developing relationships with current and new business members. He has 28 years of experience in banking, portfolio management, business relationship management and commercial lending. “Nate’s skill set and experience uniquely qualifies him to lead our organization in serving our business membership base,” stated Fred Tonty, Erie FCU’s CFO. Crouch has been a part of the Erie FCU team since 2013. He formerly served as a commercial lender III. Erie FCU offers a full suite of business services for a broad range of businesses, from business checking to business loans including fixed-term loans, commercial real estate loans, lines of credit and SBA loans.
Attorney Warner, the managing partner of MacDonald Illig, is the founder and former chair of the law firm’s Environmental Law Practice Group, and is recognized for his work in the area of environmental law. In addition, William S. Speros, a partner at the firm, has been selected by his peers for inclusion in The Best Lawyers in America® Ones to Watch 2022. He is recognized for his legal work in commercial business transactions and litigation.
mbabizmag.com • NOVEMBER 2021
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ON THE HILL | SOLUTIONS
Health Insurance Still a Problem; Small Business Needs Leaders Jezree Friend is the senior director of Public Affairs at the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or jfriend@mbausa.org. The side effects of COVID-19 have been devastating for our economy. Employers are struggling to attract and retain employees, and small businesses have the deck stacked against them. Small businesses are often unable to compete with larger businesses’ benefits packages. Employers with less than 50 employees who purchase health insurance on the “small group” market have stricter guidelines — an unfair, agebanded rating system compared to larger employers — on top of skyrocketing price increases. The Manufacturer & Business Association (MBA) has partnered with many trade associations across Pennsylvania for a unified voice for our thousands of members looking to us to help provide a solution to the rising costs of health insurance. An association health plan (AHP), similar to one’s currently being offered in over 30 other states, is a viable option to help reduce costs and provide comprehensive health coverage. For three years, the MBA and its partners have engaged the Wolf administration,
Pennsylvania legislators and insurance carriers to make way to help small business through an AHP. In short, an AHP allows small business to aggregate together to purchase health insurance the same way large businesses currently do. This helps to level the playing field by increasing the number of health insurance choices in the marketplace. Due to its size, an AHP can negotiate lower premiums, increases competition, provides more networks, and even benefits insurance carriers as it spreads out the risk. So, what’s the problem? Opponents of an AHP either do so for political reasons, refuse to acknowledge the rising costs, or simply do not understand how they work. The Pennsylvania Insurance Department (PID) fails to see the problem, alleging there has only been a 3-percent increase in the “small group” market. If you are an employer that purchases health insurance for your employees, you just laughed out loud. The truth is many employers are reporting increases of more than 40 percent. Efforts to bring these numbers to the attention of PID and leaders on Pennsylvania legislative Insurance Committees are met with a neglectful push to the subsidized “individual” market or an uninformed response that Affordable Care Act (ACA) rates are benefiting small group age-banded health insurance costs. However, the recent ACA Index Report found that five-year trend lines showed a steep increase in premiums. Since 2016, average premiums increased 40 percent,
while family premiums increased 39 percent. Furthermore, annual potential costs for a family of four topped $25,000. For 2021, the average four-person family paid $16,776 in annual premiums and faced an annual deductible of $8,440. It must be noted, the recent increase in government subsidies will expire and employers in the “small group” market impacted by these rate increases are not even government subsidized. Here are the facts: AHPs have and will continue to offer in some cases more comprehensive coverage than what is currently in the “small group” and “individual” market plans; AHPs in other states are voluntarily covering all 10 “essential health benefits”; AHPs offer broader “health-care provider networks” relative to many existing ACA “small group” and “individual” market plans, and they are priced at an “actuarially fair premium” for both young and old AHP participants; and, AHPs are subject to specific rules that prevent them from discriminating against employees based on a health condition. Most importantly, AHPs are prohibited from denying people coverage if they have a preexisting condition. Sounds like a no-brainer, right? There are two ways AHPs can become a reality. First, the Pa. Insurance Commissioner could simply issue an Insurance Bulletin. Second, the Pa. legislature could pass either House Bill 555 or Senate Bill 235. With small businesses and what’s left of their employees grasping for survival, we need leaders who are willing to act and not hide behind political platitudes.
mbabizmag.com • NOVEMBER 2021
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HR CONNECTION | WORKPLACE TRENDS REPORT: U.S. EMPLOYERS LOOK TO HIRE AT RECORD PACE
U.S. employer thirst for hiring is at an all-time high. All 12 industry sectors and all four regions of the United States surveyed for ManpowerGroup’s employment outlook reported their highest hiring outlook since the survey began in 1962. For the report, employers in 43 countries and territories were asked about their hiring intentions for Q4 2021. Both white-collar and blue-collar jobs anticipate payroll growth in the next three months, most notably: information (+62 percent), financial services (+58 percent), transportation & utilities (+58 percent), construction (+56 percent), professional and business services (+54 percent) and wholesale and retail trade (+49 percent). Hiring intentions jumped greatly within the pandemic era alone: 23 percent since Q3 2021 and 34 percent since Q4 2020. “This is a historic Q4 report as American employers seek to hire to meet a level of demand we haven’t seen in decades that we anticipate will continue into 2022,” said Becky Frankiewicz, president, ManpowerGroup North America. “Businesses know they have to get creative to attract and retain the best skilled talent. There are more than 10 million open jobs in our country and the most forward-thinking employers are building flexibility into roles traditionally seen as in-flexible, demonstrating how their purpose aligns to employee values and putting the health and well-being of their workforce above all.”
REPORT: TRADES MAY BECOME MORE SOUGHT-AFTER CAREERS
Work for electricians, carpenters, and plumbers could help fix the labor shortage. As millions of Americans reevaluate their careers during the pandemic and quit their jobs, skilled trades that typically offer higher pay and on-thejob training may be a promising new career choice. A new annual report from Angi, a marketplace for home services, highlights not only the situation of skilled trades during the pandemic but how skilled trades could take advantage of the so-called Great Resignation in other industries. “If home trades recognize the connection between what their trades offer and what workers are seeking during the Great Resignation, we could begin to see a narrative change around trade labor and start to reverse the labor shortages that have impacted the trades for years,” the report said. The report suggests people in skilled trades are happy with their work — Angi said that 83 percent of tradespeople it surveyed said they were at least somewhat satisfied. “So when two-thirds of the labor force aren’t engaged in their work, this is an area where people should be going because it’s booming,” Mischa Fisher, Angi’s chief economist, reported.
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NOVEMBER 2021 • mbabizmag.com
New MBA Medicare Program Makes Medicare Easy for Employers, Employees Over the past decade, the American workforce has been aging with the Baby Boom generation coming into retirement years. Over 10,000 Americans per day are turning 65 and many continue to work. As such, many employers are experiencing rising health insurance costs along with struggling to provide the right advice and support to aging employees due to the complexity of Medicare and Social Security. The Manufacturer & Business Association (MBA) has developed a unique, value-added program, in conjunction with its partner, MediPlanConnect. This partnership provides an education program to employers for their employees who are approaching or are already at Medicare age (generally 65 years old). The program provides education, private one-on-one consultation with the Medicare-eligible employee, as well as health plan selection and enrollment services. These services are no cost to employers or their employees as members of the MBA. With the rising cost of health care, many employers have been faced with having to reduce benefits while increasing the employee’s contributions to health insurance. The MBA Medicare program allows individuals to decide if they want to go onto Medicare, and results in a win-win for the employee and the employer. The employee gets richer benefits at a lower cost, while the employer saves money on their group health plan in addition to an employee relations win by providing a resource for the Medicare-eligible employee. Medicare is a system with numerous rules and regulations and is often misunderstood. Having trained professionals assist your organization not only reduces the burden on human resource management, but also provides a valuable service to employees who often have given many years to the organization. Allow the MBA and MediPlanConnect, a team of highly trained professionals, to assist your Medicare-eligible employees to make the right decision for their health insurance coverage needs. For more information, contact the MBA Insurance Division at 814/833-3200, 800/815-2660 or visit www.mbausa.org.
Michael Fiaschetti is the president of MediPlanConnect, an insurance and advisory services company that helps people achieve health and financial security. For more information, visit mediplanconnect.com.
HR Q&A | GET ANSWERS WHAT UNIQUE RULES APPLY TO FLEXIBLE SPENDING ACCOUNTS (FSAS)? • Under the uniform coverage rule, an employee’s annual health FSA election amount (minus any reimbursements already made) must be available to him or her at any time during the plan year, regardless of how much the employee has contributed up to that point. For example, if an employee elects to contribute $750 to their FSA, the entire $750 must be available to the employee for reimbursement immediately, even though their contributions will be divided throughout the year.
Health Flexible Spending Accounts Are Valuable Benefits Solutions for Employers As many employers have discovered, health flexibie spending accounts (FSA) are a great benefits solution. A health FSA is an employer-sponsored account that employees can use to pay for (or reimburse themselves for) qualifying medical expenses on a tax-free basis. Unlike a health savings account (HSA), employees do not need to be covered by a high-deductible health plan (HDHP) in order to participate in a health FSA. Health FSAs can be offered with any other type of health plan. Both employers and employees can make health FSA contributions, in contrast to a health reimbursement arrangement (HRA) where only the employer is allowed to make contributions. Employees may contribute pre-tax dollars to their health FSAs through a Section 125 plan (or cafeteria plan). Employers do not pay FICA or unemployment taxes on employees’ health FSA contributions. Often, employers will set a maximum annual amount that employees may contribute to their health FSAs. Effective for plan years beginning on or after January 1, 2013, the Affordable Care Act (ACA) limits employees’ pre-tax health FSA contributions each year. Employers may continue to impose limits on employee health FSA contributions, as long as the employer’s limit does not exceed the ACA’s maximum limit. For plan years beginning in 2021, the dollar limitation on employee salary reduction contributions to a health FSA is $2,750. Employees may use their health FSAs to pay for (or reimburse themselves for) their own qualifying medical expenses, as well as their spouses’ and dependents’ qualifying medical expenses. Qualifying medical expenses are unreimbursed medical care expenses, as defined under Section 213(d) of the Internal Revenue Code. An employer may more narrowly define the expenses that can be reimbursed from an employee’s health FSA. Unlike HSAs, health FSAs cannot be used to pay for non-medical expenses. For more information about FSAs, contact the Association’s HR Services team at 814/8333200, 800/815-2660 or hrservices@mbausa.org.
Rose Bruno, PHR, SHMR-CP, is an HR consultant at the Manufacturer & Business Association. Contact her at 814/8333200, 800/815-2660 or rbruno@mbausa.org.
• FSAs employ a use-it-or-lose-it model. If there are unused funds in the FSA at the end of the year (or after the grace period), the employee forfeits those funds. However, employers also have the option of allowing employees to carry over up to $550 of unused funds from one year to the next beginning in 2021. In addition, any amount that is carried over does not count toward the maximum contribution limit. HOW DOES THE COVID-19 PANDEMIC AFFECT FSAS? Due to the COVID-19 pandemic, Notice 2021-15 from the IRS provides flexibility to employers offering FSAs or dependent care assistance programs. These flexibilities allow employers to: • Provide flexibility for the carry-over of unused amounts from the 2020 and 2021 plan years; • Provide flexibility to extend the permissible period for incurring claims for plan years ending in 2020 and 2021, allowing employers to extend the grace period to 12 months; • Provide flexibility to adopt a special rule regarding post-termination reimbursements from health FSAs, which allows employers to permit employees who cease plan participation during 2020 or 2021 to continue to receive reimbursements from unused amounts through the end of the plan year in which their participation ended; • Provide flexibility for a special claims period and carry-over rule for dependent care assistance programs when a dependent “ages out” during the COVID-19 public health emergency. For purposes of determining dependent care assistance that may be paid or reimbursed, the maximum age is increased from 13 to 14 years of age; and • Allow certain mid-year election changes for health FSAs and dependent care assistance programs for plan years ending in 2021.
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mbabizmag.com • NOVEMBER 2021
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EVENTS & EXTRAS | NETWORKING & MORE
The eighth annual Manufacturing Day celebration was held October 13 at the Bayfront Convention Center in Erie. More than 1,200 students from around the region attended the half-day event, which was hosted by the MBA, partners NWPA NTMA, Career Street and Harbor Creek School District, along with major sponsor AirBorn and dozens of other sponsor organizations. For photo coverage, visit mbausa.org. The MFG Day celebration was made possible thanks to the support of dozens of sponsors and partner organizations.
Jen Nelson of major sponsor Airbo rn welcomes students to the Appreciation and Recognition event.
Thank You Sponsors!
MFG DAY ert of The Matric Group Keynote speaker Patrick Stimp manufacturing and of e rtanc impo the t abou talks manufacturing careers.
More than 50 exhibits were featured at the MFG Day event, giving students an up-close look at manufacturing today.
Guests enjoy lunch sponsored by Curtze and Smith Provision.
The 2021 Patrick R. Locco Scholarship Award winners were recognized at this year’s celebration. From left are: Max Rimdzius, Corry Area High School; Anthony Trontel, Mercer County Career Center; Lisa Prenatt, Crawford County Area Vocational-Technical School; Trevor Johnston, Erie County Technical School; and, Nolan Benedict, Erie High School.
More than 1,200 students from the region attended this year’s event. Students hear firsthand about the technology and innovation in manufacturing during the many educational breakout sessions.
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NOVEMBER 2021 • mbabizmag.com
low took top place in the Marshmal Union City students (shown here) Walnut Fort LeBoeuf and third place to Challenge with second place to iew prize went to Ryan Helfert of Fairv Creek Middle School). The App grand prize, a new iPad, enge Chall Trivia Day MFG High School. The School. Jaden Tinko of Corry Area High courtesy of Wabtec, was won by
The Manufacturer & Business Association hosted its 116th Annual Event on October 13 at the Bayfront Convention Center in Erie featuring Retired Navy Admiral William McRaven. The event was sponsored by major sponsor Ridg-U-Rak as well as UPMC Health Plan, Logistics Plus, PNC, Howard Industries, MacDonald Illig, Greenleaf Corporation, Parker LORD Corporation, McInnes Rolled Rings, Insurance Management Company and Widget Financial. For photo coverage, visit mbausa.org.
R
McRaven delivers the Retired Navy Admiral William and in leadership. keynote address on taking comm
Major sponsor Ridg-U-Rak, Inc. has been a longtime supporter of the Annual Event thanks to John B. Pellegrino Sr., P.E. and the Pellegrino family. of the tion allowed guests to see some The Annual Event Cocktail Recep for MFG Day earlier in the day. innovative exhibits on display
Hundreds of business and community leaders attended the 116th Annual Event at the Bayfront Convention Center.
Pastor Darly Myer of Hope Junction in Union City gave the invocation.
Sponsors of the Annual Event Abigail Wise of Merc yhurst Unive
are recognized on stage.
rsity sang the National Anthem.
The MBA Business Magazine Annu al Report is the most widely read issue of the year!
The 2021-2022 MBA Board of Governors is introduced to members and guests.
mbabizmag.com • NOVEMBER 2021
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NOVEMBER 2021 • mbabizmag.com
2021 HR & Employment Law Conference
SPECIAL SECTION | NETWORKING AND MORE
The Manufacturer & Business Association held its ninth annual HR & Employment Law Conference on September 8, 2021 at the Bayfront Convention Center in Erie. The new venue allowed the MBA to increase conference attendance both in person and virtually this year to more than 100 participants. Save the date for next year’s conference, which is set for September 14, 2022 at the Bayfront Convention Center. To learn more, visit mbausa.org. along with premier rence was presented by the MBA, The 2021 HR & Employment Confe Firm, Steptoe & Aflac, Widget Financial, Know Law sors spon and ll, Payro ECCA sponsor America. Johnson and Vision Benefits of
Keynote speaker Kathy Parry, author of The Rubber Band Resilient Leader presents “COVID-19, Now What? Moving Forward and Reframing.”
HR professionals gathered in perso n and virtually for the MBA’s large st HR & Employment Conference yet.
Tesha Nesbit-Armstrong of North America Partners in Anesthesi a and principal at Phoenix Rising Coaching shares her exper tise on diversity, equit y and inclusion (DEI) in today ’s workplace. Zaruta of the Knox Law Firm Attorneys Julia Herzing and Bob timely topics in labor law. discuss the Pro Act of 2021 and
Attorneys Marica DePaula and Zach Bombatch of Steptoe & Johnson share legal updates on medical and recreational marijuana and the potential impa ct on employers.
participating ECCA Payroll was among the many . The company vendors at this year’s conference was also a 2021 premier sponsor.
Tracy Coffy of Logistics Plus was the grand prize winner of this year’s raffle baske t.
mbabizmag.com • NOVEMBER 2021
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