5
THINGS YOU CAN DO TO KEEP PENNSYLVANIA PRODUCING
Vote
5
Each Week 1. Stay connected to the MBA Government Affairs office through our Facebook page and Twitter. 2. Stay up-to-date on local, state and national news by receiving the MBA’s daily online newsletter, News You Can Use. 3. Contact your local, state and federal elected officials to voice your opinion on business issues important to you. 4. Subscribe to The Hill Midweek Report – your weekly “go-to” resource for state and federal updates, hot topics, action alerts and upcoming events. 5. Visit the MBA-online advocacy program Capwiz to send your messages to your lawmakers on the spot.
5
5
Each Month
Each Year
1. Read the “On the Hill” section of the Business Magazine, for in-depth coverage of businessrelated legislation and happenings.
1. Vote in the primary and general elections by supporting pro- business, pro-growth candidates.
2. Find out how your state and federal legislators scored on the MBA-Key Vote tracking system program. 3. Read the Issues 2010: MBA Legislative Priorities Briefing Book, which provides the facts and solutions to key challenges facing the business community. 4. Attend Legislative Luncheons sponsored by the MBA to hear directly from elected officials. 5. Vote in the Keep Pennsylvania Producing online polls.
Join the MBA advocacy coalition Keep Pennsylvania Producing at www.mbausa.org/government-affairs.
2. Grow the MBA-PAC – your personal financial contribution to the political action committee will support pro-business candidates. 3. Lobby your legislators at the MBAsponsored Harrisburg and Washington, D.C. Hill visits. 4. Invite legislators for a plant tour at your facility to educate them on the importance of manufacturing jobs. 5. Participate in the Economic Snapshot Survey by giving input on the state of the economy and operations at your company.
BUSINESS M A G A Z I N E Manufacturer & Business Association
VOLUME XXIII, NUMBER 10
速
MADE IN PA
Page 12
Great Lakes Case & Cabinet Co., Inc.
OCTOBER 2010
NATIONAL TOOLING & MACHINING ASSOCIATION of NORTHWEST PENNSYLVANIA
MADE IN AMERICA | MADE IN PA Organized in 1943, the National Tooling and Machining Association (NTMA) represents 40
chapters in the United States of America with 1,400 member companies and over 37,000 employees.
The NTMA is a phenomenal network for strengthening and growing your business and to build the future leaders of your organization.
Regional Programs
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National Benefits
8 .,1- &/ ,1+0 .,$. */ 8 "$ ) !2& " //&/0 + " 8 +!1/0.5 0 0&/0& ) 0 8 .("0&+$ "-,.0/ 8 0&,+ ) ,+#"."+ "/ 8 +" ,& " ), &"/ ,+$."// +! 0%" !*&+&/0. 0&,+ to adopt a pro-manufacturing and small business agenda.
Member Business Promotion 8 "* "./ &./0 "#".. ) +! 5/0"* 8 1. % /&+$ &./ )/, (+,3+ / ."2"./" 0. !" /%,3/
PROGRAMS TRAINING/TECHNOLOGY
For More Information Visit Us at www.nwpa-ntma.com P.O. Box 203 Meadville, PA 16335 Phone: 814.720.0094 Fax: 814.724.6833 info@nwpa-ntma.com
The National Tooling & Machining Association (NTMA) is the national representative of the custom precision manufacturing industry in the United States. For the most part, the NTMA members are small businesses, yet the industry generates sales in excess of $25 billion a year. Our members design and manufacture special tools, dies, jigs, fixtures, gages, special machines and precision machined parts. Some firms specialize in experimental research and development work.
www.ntma.com
12
October 2010
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
Why Employee Assistance Programs (EAPs) are a key resource in effectively leading and managing today’s workers.
General Manager Jed Davis addresses the time-honored traditions and new technology that have made Meadow Brook Dairy one of the region’s leading producers of high-quality milk and dairy products.
7 / Health Matters
SANDRA CAFFO
9 / Legal Brief
What a recent court decision says about employers modifying workers’ comp wage loss benefits. JOHN W. DRASKOVIC
11 / Financial Adviser
Why more businesses are benefiting from the Research and Experimentation Tax Credit. ROBERT E. POWER
25 / In the Bank
Alternative investment strategies that are worth exploring. MATTHEW R. LOEFFLER
37 / Energy Update
Learn more about the EEA-PA program and how it has saved members more than $1 million in electricity costs. J. DAVID BELL
3 / Spotlight
33
12 / Made in PA
Hear from area manufacturers in a wide range of industries as they explain the economic importance of manufacturing in the Keystone State.
15 / Manufacturing Showcase See our listing of companies that are proud to manufacture in Pennsylvania.
30 / Keep Pennsylvania Producing Coalition
Learn how you can become part of the Keep Pennsylvania Producing Coalition, the Association’s grassroots advocacy initiative.
33 / On the Hill
As Election Day draws near on November 2, Association Government Affairs Director Sheila Sterrett explains the urgency of electing candidates who support a probusiness agenda.
38
ES S BMUA SG IN A Z I N E Manufacturer & Business Associati
on
VOLUME XXIII, NUMBER 10
OCTOBER 2010
®
MADE IN PA
Page 12
EVENTS >
38 / Training Graduates
See photo coverage of the Association’s recent Recognition Ceremonies honoring more than 100 graduates of our professional development and computer training courses.
DEPARTMENTS > 5 / Business Buzz 22 / HR Connection
26 / Legal Q&A 41 / People Buzz
Great Lakes Case & Cabinet Co.,
Inc.
22
Register now to receive the FREE digital edition of the Business Magazine online at www.mbausa.org! October 2010 > www.mbausa.org > 1
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SPOTLIGHT > by Karen Torres With a history that spans nine decades, four generations and hundreds of employees, Meadow Brook Dairy has grown from a family owned business, founded by Leroy and Lloyd McGarvey in 1932, to becoming one of the largest and most modern manufacturing, storage, distribution and laboratory facilities in the region. General Manager Jed Davis of the Erie office at 2365 Buffalo Road recently sat down with the Business Magazine to address the time-honored traditions and new technology that have made Meadow Brook Dairy one of the region’s leading producers of high-quality milk and dairy products.
Meadow Brook Dairy is currently one of the 40 brands of Dean Foods Co., the largest dairy processor in the United States. Please describe the wide variety of products that you manufacture. Meadow Brook’s focus is producing delicious healthy beverages for the whole family to enjoy. We provide a wide range of dairy products supporting the retail, institutional and food service sectors. Our primary products include white and flavored milk, cottage cheese, sour cream, half-and-half and soft serve ice cream mix. A few other products we offer include organic milk, orange juice and Swiss Premium Iced Tea. We offer these items in a variety of sizes ranging from 5-gallon containers down to 4-ounce cartons. We often hear the slogan, “Milk. It does a body good.” How has increased attention on nutrition impacted your business? The increased attention to nutrition has led us to look closer at the products we manufacture and sell. Consumers are asking for lower fat items and are concerned about preservatives. We recently reformulated our flavored milks to reduce the sugar content and lower the calories. Schools are concerned about the nutritional value of the milk they serve the children. Our new flavored milk formulas address these concerns. Also, one of our newest items, Swiss Premium Iced Tea, is all-natural with no preservatives or high fructose corn syrup. As a food manufacturer, Meadow Brook Dairy is dedicated to consistently delivering safe and wholesome products to its customers. Please explain some of the safety and quality systems that you have in place and the importance of these measures to your company’s success. Meadow Brook Dairy is committed to quality and safety. In July of 2009, we achieved the highest level of SQF certification available, Level 3. Safe Quality Foods (SQF) is a leading global food safety and quality certification program. The program provides independent certification that our food safety and quality management system complies with international standards. Our commitment to quality is integral to our success. It provides assurance to our customers that we produce quality products. Meadow Brook Dairy services the greater Erie, Pennsylvania area, and, in addition to its processing facility located in Erie, has distribution centers located in Syracuse, Elmira and LeRoy, New York. Please describe the size of Meadow Brook’s operations – work force, estimated sales and annual production? Meadow Brook Dairy has 200 dedicated employees throughout our organization and processes over 26 million gallons of milk each year. On average, we receive 100 tankers of raw milk each week for processing. Throughout its history, Meadow Brook has embraced new advances in the dairy industry to stay competitive. Please provide some examples. Two recent changes that Meadow Brook has adopted are rBST-free milk and the light-blocking bottle. In 2008, consumers started asking for milk without rBST, an artificial growth hormone given to cows to produce more milk. Shortly after consumers started inquiring about rBST, we converted our milk supply to 100-percent rBST-free milk. Prior to that, we introduced a light-blocking bottle that keeps out harmful UV rays improving flavor and quality. In your experience, how competitive is the food manufacturing industry and what is your outlook for 2011? The dairy industry is extremely competitive with plenty of capacity in the marketplace.
VOL. X XIV, NO. 10 OCTOBER 2010 Manufacturer & Business Association Board of Governors
Editor in Chief
Executive Editor
Managing Editor & Senior Writer Contributing Writers
Photography Contributed Photos
Advertising Sales
Yvonne Atkinson-Mishrell John Cline Dale Deist Timothy Hunter Dan Ignasiak Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Sue Sutto Phil Tredway Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org
Sandra Caffo Jessica Crocker John W. Draskovic Matthew R. Loeffler Robert E. Power Karen Torres Ainsworth Pet Nutrition LORD Corp. Mack Trucks Woolrich Zippo Manufacturing Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org
Design, Production & Printing
Printing Concepts Inc. printcon@erie.net
Additional Design
Jessica Crocker
ON THE COVER: Manufacturing continues to thrive as a major economic driver in the Keystone State. See full story on Page 12.
Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2010 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.
October 2010 > www.mbausa.org > 3
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Business Buzz CLARION INDUSTRIES MAKES $10 MILLION CAPITAL INVESTMENT Clarion Industries will complete work this month on several major manufacturing initiatives that will help prepare the company for future growth. The capital expenditures target energy efficiencies, innovation and quality technologies, and increase manufacturing production capacity. A portion of the $10-million investment has been dedicated to improving plant efficiencies, including two projects that will provide upgraded environmentally smart designed manufacturing lighting and will replace the company’s clean air environmental system. “Clarion’s volume has significantly outpaced our expectations. Our new ownership group, that invested $26 million about 14 months ago, believes now is the time to invest
DEPARTMENTS > Contact: Jessica Crocker
aggressively to support our future growth opportunities,” said Tony Sturrus, president and CEO, Clarion Industries.
Center in Pittsburgh.
With corporate offices in Shippenville, Pennsylvania, Clarion Industries is the parent company of Clarion Boards, Inc. and Clarion Laminates, LLC — the only truly integrated laminate flooring operation in the USA, with HDF panels and laminate flooring produced in one 660,000-square-foot state-of-the-art facility that connects the two factories in one location. For more information, visit www.clarionindustries.com. SMITH PROVISION SCORES WITH PITTSBURGH PENGUINS DEAL At a recent news conference, Eriebased Smith Provision announced a multi-year agreement to become the official hot dog of the Pittsburgh Penguins and the Consol Energy
As part of the deal, Smith’s hot dogs, sausages and deli meats will be served exclusively at all Penguins home games and during events and concerts at the new Consol Energy Center. The partnership will provide the company with extensive marketing opportunities at the new arena, as well as a major presence with the Penguin’s broadcasts, Web site and fan experience. According to David Peart, the team’s vice president of Business Development, the Pittsburgh Penguins chose Smith’s because of their uncompromising commitment to quality. By the end of the agreement, Smith Provision hopes to deliver 4 million hot dogs to the arena annually. For more information, visit www.smithhotdogs.com.
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At Highmark, our customers and their employees get quality customer service, fewer claims issues, DQG RQOLQH DFFHVV WR EHQHÀWV LQIRUPDWLRQ $QG ZH offer the most doctors and hospitals, outstanding coverage, more choices and good value. No wonder we’re number one in the market when it comes to member satisfaction. So choose Highmark. Give your employees the coverage they want. And have a greater hand in your company’s health. Find out more at 888.286.8414 or highmarkbcbs.com.
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An Independent Licensee of the Blue Cross and Blue Shield Association Your health plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered.
October 2010 > www.mbausa.org > 5
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Health Matters
EDITORIAL > by Sandra Caffo
Employee Assistance Programs Are a Key Resource for Today’s Employers Continuous change is the norm in today’s workplace for large, medium and small companies. Regardless of size, a company has to do more with less, especially given the current economic environment. The pace and volume of information has increased rapidly and there is a growing amount of specialization within industries and professions. It’s more than likely a company will have employees as young as 20 and as old as 70, and every age in between. What engages and drives each of these groups varies. Leaders must focus on external market conditions while hiring, engaging and retaining a healthy and productive work force. The good news is resources are within easy reach in the form of Employee Assistance Programs (EAPs). EAPs are a key resource to support leaders in effectively leading and managing today’s workers. How is an EAP Capable of Providing Leadership Support? 1. Leadership support has been a part of EAPs from the beginning, some 60 years ago. The program assisted supervisors and managers in dealing with troubled employees at work — with the focus on alcohol. 2. Over time, EAPs have built on that kind of expertise to provide consultation to HR, leaders, managers and unions on a wide range of issues. Resolving workgroup problems, managing a multi-generational workplace, positively dealing with differences and restoring productivity are some examples. 3. A company’s most valuable resource is its employees and what impacts them impacts the
company’s bottom line. EAP professionals are equipped to partner with an organization to use EAP services to meet corporate objectives. Ways an Employer Can Take Advantage of an EAP In addition to meeting the needs of individual employees, EAPs provide a wide range of organization support services including: t IVNBO SFTPVSDFT DPOTVMUBUJPO JO dealing with a difficult employee situation; t BTTJTUBODF JO HFUUJOH BO FNQMPZFF to the EAP for personal reasons or job-performance issues; t FYFDVUJWF DPOTVMUJOH BOE DPBDIJOH t TVQFSWJTPS BOE FNQMPZFF communications, including newsletters, Web sites and presentations aimed at supporting wellness and productivity; t XPSLJOH XJUI MFBWF NBOBHFST UP support successful return to work; and t MJOLJOH UIF &"1 UP XFMMOFTT engagement and other priority initiatives. A Matter of Disrespect As the pace of work increases, workers’ stress also increases. One way this shows up is in work groups not pulling together, being disrespectful toward each other, forming cliques or factions and becoming inefficient on the job. It’s a common scenario in today’s workplace. An EAP can examine what’s fueling the unrest and support the manager, HR, and any other leaders who need to be involved, in developing a plan to address the situation. Perhaps the manager will need to change management style. Or, it could be
one or more employees would need to get referred to the EAP. Training may become part of the process. Because an EAP understands the culture of a company as well as the needs of the individual employees, it can be an active part of developing the problem resolution strategy. Additionally, EAPs address other challenges like layoffs. An EAP can support employees who are leaving the company, as well as those who are staying and may be feeling guilty. It also can help managers to maintain calm and keep staffs productive through the turnover. The Challenge Leaders need to take care of themselves so that they can successfully lead their organizations. In part, that involves identifying and using available resources. The EAP is one such resource for use by all levels of the company through in-person, telephone and online intervention. For more information on the benefits of EAPs, please visit upmchealthplan.com. Sandra Caffo is senior director of LifeSolutions, which is a UPMC WorkPartners company. UPMC WorkPartners is one of the integrated partner companies of the UPMC Insurance Services Division, which also includes UPMC Health Plan, UPMC for You (Medical Assistance), and E-Benefits. UPMC Insurance Services Division companies offer a full range of insurance programs and products. October 2010 > www.mbausa.org > 7
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Legal Brief
EDITORIAL > by John W. Draskovic
Decision Clarifies Employer’s Burden in Modifying Workers’ Comp Wage Loss Benefits Prior to the 1996 amendments to the Pennsylvania Workers’ Compensation Act, an employer seeking to reduce an employee’s wage loss benefits was required to produce evidence of an open job fitting the employee’s physical limitations. The employee was only then required to demonstrate good faith in following through on the job referral. The 1996 amendments eliminated the requirement to offer a job to the claimant and allowed benefits to be reduced through the use of an “Earning Power Assessment.” The assessment is performed by a vocational expert and establishes an injured employee’s “earning power,” which is defined, in part, as follows: “Earning power” shall be determined by the work the employee is capable of performing and shall be based upon expert opinion evidence, which includes job listings with agencies of the department, private job placement agencies and advertisements in the usual employment area. The Ruling The Commonwealth Court’s recent decision in Phoenixville Hospital v WCAB (Shoap), No. 2188 C.D. 2009 appears to simplify an employer’s burden in modifying wage benefits through the use of earning power assessments. There, the employer filed a Modification Petition seeking to reduce the claimant’s wage benefits based upon an Earning Power Assessment showing claimant to have an average weekly earning power of $347.41. The employer presented medical testimony establishing claimant was capable of engaging in sedentary work. The employer then presented testimony from a vocational expert who conducted an earning power assessment and identified five jobs that
fell within the claimant’s sedentary restriction and provided an average weekly wage of $347.41. The claimant presented medical testimony indicating claimant could not perform the five jobs identified by the vocational expert. The claimant also testified that she applied for all five jobs and was not hired. The Workers’ Compensation Judge found the employer’s medical and vocational experts to be credible, but also found the claimant to have acted in “good faith” in following up on the job referrals and that none of the jobs resulted in an offer of employment. For these reasons, the judge found in favor of the claimant and denied the employer’s Modification Petition. On appeal, the Commonwealth Court noted the 1996 Amendments lowered the employer’s burden of proof. The Amendments allow an employer to obtain a reduction of wage benefits on evidence of earning power proved through expert testimony, rather than evidence that the claimant obtained or could have obtained employment in the absence of bad faith conduct. The Court went on to state: “Today we are ... asked to determine whether a job not only exists, but is available to claimant for the purposes of Section 306(a) of the Act when she applies for each individual job contained in a labor market survey and does not receive an offer of employment where the employer’s expert testimony is credited that the jobs were open and available at the time he identified the employment opportunities. We determine that Employer is not precluded from obtaining a modification of benefits where, as here, claimant pursued the jobs contained in the labor market survey weeks after they were identified as
open and available...” In Conclusion Previously, a claimant could challenge or refute the findings of an Earning Power Assessment by contacting each employer identified in the assessment, applying for the job, then subsequently testifying that the job was not available because he or she did not receive an offer of employment. In today’s job market, entry level positions can become available and filled within a very short period of time. The Court’s recent decision recognizes it is simply unrealistic to presume that all jobs identified in an Earning Power Assessment as open and available on a given date will remain open and available nearly a month or more later when the claimant receives the report from the vocational expert. It is now clear that the employer’s burden is only to show availability at the time of the vocational expert assessment. For more information on workers’ compensation claims, please contact John W. Draskovic at 814/870-7653 or jdraskovic@mijb.com. John W. Draskovic is a senior partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he is chairman of the firm’s Workers’ Compensation Group, and a member of the firm’s Litigation and Labor Groups. He practices exclusively in the areas of civil litigation and workers’ compensation. His litigation practice consists primarily of defending insurance carriers and businesses from all variety of claims. His employment practice includes representing carriers and self-insured employers in workers’ compensation and other employmentrelated claims.
October 2010 > www.mbausa.org > 9
Natural Gas For Comfort. For the Environment. For Savings. We can warm our homes and businesses, provide hot water, cook our food, dry our clothes, generate clean power, and fuel our industries, all without destroying our air. 'PIER FYVRMRK REXYVEP KEW LIPTW TVSXIGX SYV IRZMVSRQIRX F] WMKRM½GERXP] reducing greenhouse gases, smog and acid rain. And does so economically, with proven reliable technology. And it is produced right here in North America. All of which makes natural gas the clear winner for a cleaner community...
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EDITORIAL > by Robert Power, CPA, CVA, ABV, CSMC, CDBV, CFF
Financial Adviser R&E Tax Credit: Recent Rulings in Favor of Taxpayer Changes in the R&E Tax Credit With past tax regulatory changes, the Research and Experimentation (R&E) Tax Credit was significantly expanded and enhanced. Consequently, the number of eligible taxpayers and the amount of credit claimed by taxpayers has increased considerably. Because of these increases, the Internal Revenue Service (IRS) identified this area as a high priority with increased examinations and oversight, and therefore has led to a greater number of tax case rulings; four decisions already have been issued in 2009 and 2010. The good news is that these recent cases have resulted in favorable findings for the taxpayer and provide insight in the proper application of these new rules. Custom/Contract Manufacturing One case in particular is good news for the custom or contract manufacturing segment in northwestern Pennsylvania. TG Missouri v. Commissioner is a Tax Court case (2009) dealing with a plastic injection molding manufacturer that supplies the automotive industry. This taxpayer develops and uses molds (tooling) to manufacture automotive parts for its customers. The entity also incurs additional design and engineering costs to modify molds produced by outside suppliers. As long as these molds are customer owned, the wage costs associated with the development of these molds qualify for the R&E Tax Credit. The court determined that amounts paid to outside suppliers for acquired molds also qualify for the R&E Tax Credit as a supply cost. Therefore, TG Missouri is only paid for the mold when it produces a sample part acceptable to the customer – one of the factors necessary for qualification. Issues Addressed in Other Cases: Business Component Development of a “business component” can qualify for the R&E Tax Credit. Both the development of a product and the development of a process to produce a product can qualify as a “business component.” In TG Missouri mentioned above, the mold would be the “product,”
and the process to produce or build the mold would be the “process.” Capability, Method or Design One of the requirements to qualify for the R&E Tax Credit is that there must be uncertainty in either: the capability, method or design of the business component. In TG Missouri, the capability or the method used in developing the mold or its production process wouldn’t fall into this category. The design at inception, however, will almost always be different than the final design of the business component. The Union Carbide Corporation v. Commissioner case (2009) provides that only uncertain design is necessary for qualification. Union Carbide had previously developed processes similar to the new process currently being developed. The IRS maintained, and the court agreed, that there was little doubt that the company would be successful with the development of this new process. The court, however, held that this development activity qualified because the final design was not known at inception. Documentation In recent cases, the IRS has challenged the taxpayer’s position based on inadequate documentation. In some instances, the IRS has insisted on contemporaneous recordkeeping. U.S. v. McFerrin (a Fifth Circuit, U.S. Court of Appeals case (issued in 2009) cites the longstanding rule of Cohan v. Commissioner (a 1930 case) and states that if a qualified activity occurred, the court should estimate these expenses looking to testimony and other evidence, including the institutional knowledge of the company’s employees. Union Carbide and Trinity Industries, Inc. v. U.S. (a 2010 case) also cite the Cohan Rule as an acceptable approach in determining the cost or expense in the absence of specific documentation. Qualifying Activities In the previously discussed Trinity Industries, a shipbuilder claimed the R&E Tax Credit for the design and development
of special order ships. The development involved the consideration of combining subassemblies as part of the ship design. The government’s challenge was that this consideration was “nothing more than ordering off of a menu – pick a hull from column A, a propulsion system from column B, an HVAC from C, etc.” The court responded that this analogy greatly oversimplifies the approach and indicated that “determining which configuration out of the universe available can … involve a significant research effort.” The court also stated that the interaction between systems can be “complex and nonintuitive.” The result of this case appears to be more support for the qualification of the custom/contract manufacturer. Likewise, as these recent cases demonstrate, if the taxpayer is diligent in determining and developing support for its qualifying activities, the result should be a valuable tax credit. For more information, please contact Robert Power at McGill, Power, Bell & Associates at 814/453-6594 or rpower@mpbcpa.com. Robert Power, CPA, CVA, ABV, CSMC, CDBV, CFF, is a partner at McGill, Power, Bell & Associates, LLP, a regional certified public accounting firm with offices in Erie and Meadville. A major component of his practice is devoted to the manufacturing sector, to which he provides tax and consulting services, including information systems, activity based costing, succession planning and research and experimentation tax credit utilization. He is a certified specialist in management consulting (CSMC) and specializes in business valuations and litigation support services.
October 2010 > www.mbausa.org > 11
MADE IN PA Manufacturing continues to thrive as major economic driver in Keystone State Still headquartered in the little village of Woolrich in central Pennsylvania, Woolrich, Inc. has seen its business grow worldwide.
throughout Europe and, on the apparel side, has a multi-label strategy that allows it to cater to very distinct market segments on a global basis. Innovation too, according to the company, is a necessity to survive. “We are continually researching new fabrics and fabrication to improve our products and provide outdoor enthusiasts with the right products to fit their lifestyle,” adds Sheets. Woolrich recently completed a substantial addition to its main distribution center including a new three-story pick module and state-ofthe-art paperless order picking computer system called “Pick to Light.” The company also purchased a new Web-based HR/Payroll system that will enable them to automate manual processes, reduce administrative costs and provide employees and managers with online access to employment information and perform various types of transactions. But, like many other manufacturers, one of the most significant challenges for Woolrich is its aging work force. Hiring replacements for highly skilled workers who will be retiring soon is going to be a challenge, as well as rising costs, expansion of government regulations, and competition from foreign suppliers of woven fabric.
Is anything made in America anymore? The answer to that question is a resounding yes. Each year, U.S. manufacturers — including the thousands of manufacturing companies across Pennsylvania — produce hundreds of billions of dollars worth of goods, everything from GE locomotives and Heinz ketchup to Crayola crayons and Hershey candy bars. According to the National Association of Manufacturers (NAM), the United States continues to stand strong as the No. 1 manufacturing economy in the world, producing 21 percent of global manufacturing wealth. These manufacturers also perform half of all research and development in the nation, driving more innovation than any other sector. If that isn’t enough, research shows that manufacturing supports an estimated 18.6 million jobs in the United States — about one in six private sector jobs. Nearly 12 million Americans are directly employed in the manufacturing sector, earning 22 percent more in wages and benefits than the rest of the work force. On the state level, statistics from the Pennsylvania Manufacturers Association show Pennsylvania manufacturing companies sustain the largest and most important sector of the state’s economy, generating 13.6 percent of our Gross Domestic Product. These manufacturing firms add $75 billion of wealth every year and directly employ more than 560,000 Pennsylvanians. In fact, all across the Keystone State, you can find numerous examples of these companies — companies like Custom Engineering, Eriez, Howard Industries, and Ridg-U-Rak, Inc., to Industrial Sales & Mfg., Sharpsville Container, 12 < www.mbausa.org < October 2010
Meadow Brook Dairy, Sunburst Electronics, Great Lakes Case & Cabinet Co., Inc. and thousands of others, including Woolrich, LORD Corp., Ainsworth Pet Nutrition, Zippo Manufacturing and Mack Trucks — hard at work creating, innovating and producing parts, processes and products that are “Made in Pa.” “Pennsylvania has a strong manufacturing heritage that continues today across various industries,” notes Roger Sheets, vice president – Human Resources for Woolrich Inc., headquartered in Woolrich, a 30-minute drive from Williamsport. “Pennsylvanians are proud of their hard work and what they produce and Woolrich is proud to be a part of this legacy having manufactured products in Pennsylvania for almost 200 years. We have employees whose parents and grandparents have worked at Woolrich. We take great pride in the products we produce and supporting the surrounding communities by providing good jobs, benefits, and training in a rewarding work environment.” According to the company, Woolrich has produced high-quality, outdoor apparel since 1830 and has the longest continuously operating woolen mill in the United States. The tradition began with founder John Rich selling workwear to lumberjacks and sawmill workers out of a mule cart. Since then, Woolrich has grown into an internationally recognized outdoor brand with a custom collection of apparel, accessories and home furnishings. To stay competitive, however, Woolrich is constantly on the lookout for new opportunities in the marketplace. This past year, the company hired two sales agents to sell its Mill wool fabrics
“We are very concerned about the expansion of stringent new government regulations and legislation affecting all aspects of our business,” notes Sheets. “We are particularly concerned about the impact of the health-care reform act on our ability to manage costs, make plan design changes, and continue offering a choice of plans that best meet our employees’ needs. Government as a whole needs to be less intrusive and more pro-business.” The importance of manufacturing cannot be overstated. “Although the domestic manufacturing sector has been in steady decline for many years the United States,” continues Sheets, “there is no other sector in our country that contributes more to the growth of our economy than manufacturing. In spite of pressure from global competition, manufacturing in the United States is and will always be an important part of our free market system.” Driving Innovation With annual sales of approximately $700 million, net exports of more than $100 million in goods annually, and more than 2,500 employees worldwide, LORD Corp. has manufacturing operations in nine countries and offices in more than 15 major business centers. While headquartered in Cary, North Carolina, its large presence in Pennsylvania includes a major office/technical center in Erie, a manufacturing plant in Erie, and two plants in Crawford County — Cambridge Springs and Saegertown. The privately-held company founded in 1924 designs, manufactures and markets mechanical devices and electromechanical systems to control vibration, motion and noise; formulates, produces and sells general purpose and specialty adhesives, coatings and electronic
With a dedicated rotor hub-manufacturing cell in Erie, Pennsylvania, LORD Corp. has the engineering capability and expertise to deliver custom major sub assembly solutions such as pitch link assemblies, rod end assemblies, rotor hub subcomponents and tail rotor hubs.
In the 1970s and ‘80s, the company greatly expanded its overseas sales and marketing efforts. As a result, Zippo lighters are now sold in more than 150 countries worldwide. Still based in Bradford, Zippo is owned and operated by George B. Duke, grandson of the founder. The company employs 546 part-time and fulltime workers, but like many manufacturers has and continues to face the challenges of being able to find of highly skilled blue collar workers with technical training.
materials; and develops products and systems utilizing magnetically responsive technologies, for the aerospace, automotive, electronics industries, and a wide range of industrial sectors (such as construction, agriculture, recreational and energy). “At LORD Corporation, innovation ensures we stay competitive,” notes Joe Marotta, president of Americas for LORD. “We have always been committed to designing innovative solutions, which translates into the products we manufacture. We work hard to build and protect intellectual property in design and process, including the necessary commitment to excellence in manufacturing that shows in steady productivity gains delivered by our dedicated and skilled work force.” Research and development (R&D) is very important to LORD, and it has been a hallmark of the company since its founding 86 years ago. As a percent of sales, LORD spends two to three times what its industry peers spend on R&D. “LORD is always working on new technologies and product solutions for the markets we serve,” says Marotta. “We innovate based on market and customer need, including for emerging industries, such as solar and wind energy.” According to Marotta, one example of how LORD Corporation’s dedication to new products and its facilities come together is with the expansion of the company’s manufacturing capabilities to produce magneto-rheological (MR) Steerby-Wire Tactile Feedback Device brakes in its Cambridge Springs plant. LORD Corporation is the world’s leading supplier of commercial MR materials, devices and systems. This is a good
example of how innovation and commitment to R&D has led to production and job growth in one of the company’s Pennsylvania plants. Yet, one of LORD Corporation’s biggest concerns is ensuring that manufacturing firms can continue to remain competitive. “The white paper issued by the NAM in June, entitled ‘Manufacturing Strategy for Jobs and a Competitive America,’ (www.nam.org) speaks to the concerns of American industry and offers concrete recommendations for a better future,” notes Marotta. “Unfortunately, manufacturing seems to get ‘talked down’ in America. Although we have a strong service economy, we have always had, and must continue to have, a strong manufacturing base in the United States.” Committed to Investment Striving for manufacturing excellence has been the cornerstone of Zippo Manufacturing Company, the maker of Zippo windproof lighters, since it was founded in 1932 by George G. Blaisdell, a Bradford businessman who was looking for an attractive lighter that would work even in adverse conditions. During World War II, Zippo suspended distribution to civilians and funneled all Zippo windproof lighter production to U.S. military personnel. According to Peggy Errera, manager of Corporate Communications for Zippo, “The fact that millions of American military personnel carried the lighter into battle was a significant catalyst in establishing Zippo as an icon of America throughout the world.”
Bradford, Pennsylvania, is home to Zippo Manufacturing and the commitment to the craft and quality synonymous with “Made in America.”
“Zippo has a continuing commitment to invest in our employees in training, technology and facilities,” notes Errera. “(Our) PA Wednet training grant has made a big impact on enabling Zippo to expand its training of employees.” Key initiatives, such as increased efficiency, a cross-trained work force and technological advances have helped the operation stay competitive and innovative in the global marketplace. Also mission critical are diversification and acquisitions. Case and point: In February 2010, Zippo purchased substantially all of the assets of Ronson Consumer Products Corporation, Woodbridge, New Jersey, and Ronson Corporation of Canada Ltd.; and certain related assets of Ronson Corporation. The entire Ronson butane and liquid fuel operation was moved to a new facility in Bradford. Zippo also recently introduced the Outdoor Line, a complete range of flame and heat products geared to hunters, campers, and those who need a flame outdoors. “Research and development is highly important to the success of our company,” notes Errera. “The design of our iconic windproof pocket lighter has changed very little since 1932, but our methods of customizing the lighter have evolved to some of the most cutting-edge technologies in the business. Different finishes, color-imaging strategies, and proprietary engraving techniques keep our flagship product new and competitive in the domestic and international markets.” >
October 2010 > www.mbausa.org > 13
Ainsworth Pet Nutrition, headquartered in Meadville in northwest Pennsylvania, manufactures a complete line of dog and cat foods. The company also is dedicated to buying ingredients from local farmers in order to support its neighbors, while keeping transportation and retail costs low.
A Strong Reputation Founded in 1900, Mack Trucks, Inc. is one of North Americaâ&#x20AC;&#x2122;s largest producers of Class 8 heavy-duty trucks, well known for its Bulldog trademark. According to spokesman John Walsh, the company earned its nickname in 1917, during World War I, when the British government purchased the Mack AC model to supply its frontlines with troops, food and equipment. British soldiers dubbed the truck, the â&#x20AC;&#x153;Bulldog Mack.â&#x20AC;? Its pugnacious, blunt-nosed hood, coupled with its incredible durability, reminded the soldiers of the tenacious qualities of their countryâ&#x20AC;&#x2122;s mascot, the British Bulldog. Today, Mack trucks are sold and serviced in more than 45 countries through a worldwide network of sales, parts and service centers. The company, based in Greensboro, North Carolina, currently employs approximately 3,500 people around the world, with a huge share â&#x20AC;&#x201D; roughly 1,000 strong â&#x20AC;&#x201D; working in Pennsylvaniaâ&#x20AC;&#x2122;s Lehigh Valley region. Mack offers a full line of heavy-duty trucks for onhighway and vocational use â&#x20AC;&#x201D; manufactured at Macungie Assembly Operations, a 1-millionsquare-foot plant just outside of Allentown, Pennsylvania. The companyâ&#x20AC;&#x2122;s REMACKÂŽ remanufacturing center in Middletown, Pennsylvania, receives components that have exceeded their initial life cycle and restores them to their original performance specifications to begin another life cycle. â&#x20AC;&#x153;Mack trucks have been severely tested on some of historyâ&#x20AC;&#x2122;s most grueling construction sites,
helping to build the Hoover Dam, Rockefeller Center, the St. Lawrence Seaway and the Lincoln Tunnel. The phrase â&#x20AC;&#x2DC;Built Like a Mack Truckâ&#x20AC;&#x2122; â&#x20AC;&#x201D; shorthand for strength and power â&#x20AC;&#x201D; has become part of the American language,â&#x20AC;? notes Walsh. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re proud to be part of the only heavyduty truck manufacturing group who can say that every truck we sell in America is built in America.â&#x20AC;? Focused on the Future One family owned manufacturing company that is now on its fifth generation is Ainsworth Pet Nutrition, the parent company of DADâ&#x20AC;&#x2122;s Pet Care, Ainsworth Specialty Brands and Ainsworth Custom, headquartered in Meadville, Pennsylvania. Founded in 1933 by George Ainsworth Lang, Ainsworth Pet Nutrition has since grown into a pet food manufacturer of not only dry pet food, but soft-moist pet food and pet treats with distribution of more than 500 of its own branded, private label products, and co-manufactured products throughout 48 states. To date, the company has approximately 550 employees and more than tripled its sales revenue over the last decade. â&#x20AC;&#x153;While technology and services businesses are a large component of our stateâ&#x20AC;&#x2122;s economy, I believe manufacturing remains a critical element in the mix,â&#x20AC;? states Faith Radcliffe, vice president Brand Marketing and Services. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve seen many manufacturing businesses close and downsize in
The Big Picture of PA Manufacturing t .BOVGBDUVSJOH FNQMPZNFOU 573,600 t .BOVGBDUVSJOH FNQMPZNFOU QFSDFOU PG PWFSBMM OPOGBSN 10.2 percent t "WFSBHF BOOVBM DPNQFOTBUJPO NBOVGBDUVSJOH $66,632 t "WFSBHF BOOVBM DPNQFOTBUJPO SFTU PG XPSL GPSDF $54,793 t .BOVGBDUVSJOH QBZ QSFNJVN QFSDFOU $11,840 (22 percent) t 1FOOTZMWBOJB NBOVGBDUVSJOH PVUQVU $75.5 billion t .BOVGBDUVSJOH TIBSF PG 1FOOTZMWBOJB T FDPOPNZ 13.6 percent t .BOVGBDUVSJOH FTUBCMJTINFOUT JO 1FOOTZMWBOJB 15,430 t .BOVGBDUVSJOH T TIBSF PG 1FOOTZMWBOJB FYQPSUT 92 percent t 5PUBM FNQMPZNFOU SFMBUFE UP NBOVGBDUVSFE FYQPSUT 258,200 t 5PQ NBOVGBDUVSJOH JOEVTUSJFT - chemical products (12.7 percent); - computer and electronic products (11.7 percent); - food, beverage and tobacco products (11.4 percent); - petroleum and coal products (8.9 percent); - fabricated metal products (8.1 percent); - machinery (7.4 percent); - aerospace and other transportation equipment (5.6 percent); - motor vehicles (5.3 percent); - medical equipment and miscellaneous manufacturing (4.7 percent); - plastic and rubber products (4 percent). â&#x20AC;&#x201D; Sources: 2008 and 2009 data from NAM, U.S. Departments of Labor and Commerce, and the United Nations 14 < www.mbausa.org < October 2010
recent years. Fortunately, Ainsworth Pet Nutrition has actually been growing and hiring additional employees despite the economic downturn. ... Our people, our family members, will continue to keep this company innovative, growing and relevant in the future. Our companyâ&#x20AC;&#x2122;s commitment to hiring the best of the best has been the key to our success.â&#x20AC;? The company has made some investments and acquisitions throughout the past few years. Most notable is its acquisition of ARKAT Animal Nutrition in Dumas, Arkansas. In June, Ainsworth Pet Nutrition announced plans to increase its work force in Dumas by 75 percent and is currently making a $10-million investment to add capacity and capability enhancements to that facility. In 2007, the company dramatically improved its manufacturing capabilities in its Meadville plant through an investment of about $14 million for equipment and plant design improvements. â&#x20AC;&#x153;Manufacturing remains a vital component of our economy,â&#x20AC;? adds Radcliffe. â&#x20AC;&#x153;Ainsworth Pet Nutrition is committed to increasing jobs and making more investments to grow our business. Our success will directly impact many other businesses in the state as well as the lives of our employees. Weâ&#x20AC;&#x2122;re excited about our future....â&#x20AC;?
The Macungie Assembly Operations in Macungie, Pennsylvania, located in the Lehigh Valley, produces the Mack line of vocational, construction and highway trucks.
MADE IN PA
M A N U FAC T U R E R S H O W C A S E Pennsylvania’s manufacturers sustain the largest and most important sector of Pennsylvania’s economy, adding $75 billion of wealth every year and directly employing more than 560,000 Pennsylvanians. We’re proud to showcase the importance of Pennsylvania manufacturing and the products made right here in the Keystone State in this special section of the Business Magazine.
BUCKS FABRICATING 3547 Perry Highway Hadley, PA Phone: 724/253-3322 Web site: www.bucksfab.com Specializes in steel and plastic roll-off containers.
LAKE ERIE PORTABLE SCREENERS 9843 Martin Ave. Box 408 Lake City, PA 16423 Phone: 888/448-2486 or 814/774-7080 Web site: www.pitbullscreeners.com LEPS manufactures the highest quality, most versatile portable screeners available.
CORRY CONTRACT INC. 21 Maple Avenue Corry, PA 16407 Phone: 814/665-8221 Web site: www.corrycontract.com Contracted sheet metal fabricator serving the metal furniture, transportation and electronics industries.
SEPCO-ERIE 1221 Robison Road West Erie, PA 16509 Phone: 814/864-0311 Web site: www.sepco-erie.com Specializes in tube cutting and end working, and banjo fittings for diesel engines.
THE ELECTRIC MATERIALS COMPANY 50 S. Washington Street North East, PA 16428 Phone: 814/725-9621 Web site: www.elecmat.com Manufactures copper products, including custom extrusions, castings, forgings, fabricated components and commutators. ERIE PRESS SYSTEMS 1253 West 12th Street, PO Box 4061 Erie, PA 16512-4061 Phone: 814/455-3941 Web site: www.eriepress.com Manufactures custom hydraulic and mechanical presses for forging, extrusion, stretch forming, compaction and metal forming. FISHER & LUDLOW – A NUCOR COMPANY Saegertown, PA Phone: 814/763-5914 Web sites: www.nucor.com and www.fisherludlow.com Steel grating manufacturer and Department of Labor Employer of the Year 2010. G.W. BECKER, INC. 2600 Kirila Blvd. Hermitage, PA 16148 Phone: 724/983-1000 Web site: www.gwbcrane.com Overhead crane manufacturer with full-service, singlesource, supplier capabiities.
SPECIAL SECTION
SHARPSVILLE CONTAINER 600 Main Street Sharpsville, PA 16510 Phone: 724/962-1100 Web site: www.sharpsvillecontainer.com Supplier of high-quality stainless steel, carbon and exotic alloy container solutions. TECH MOLDED PLASTICS INC. 1045 French St. Meadville, PA 16335 Phone: 814/724-8222 Web site: www.ttmp.com Specializes in high-performance injection molding of engineered resins for complex applications. TONNARD MANUFACTURING 715 Spring Street Corry, PA 16407 Phone: 814/664-7794 Web site: www.tonnard.com Short-run metal stamping manufacturer. Highly automated for low volume. THE WARREN COMPANY 2201 Loveland Avenue Erie, PA 16506 Phone: 814/838-8681 Web site: www.thewarrencompany.com Metals service center and custom fabricator. ZEYON, INC. 3408 McClelland Avenue Erie, PA 16510 Phone: 814/899-3311 Web site: www.zeyon.com Manufacturer of custom ASME pressure vessels, tanks, piping, reactors for more than 40 years.
October 2010 > www.mbausa.org > 15
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Founded:   1967  President/CEO:  James  Rutkowski  Sr.  E-Âmail:  jrutkowskijr@ismerie.com  Facility:  120,000  square  feet  Certification:  ISO-Â9001:2008 Â
If  it  is  made  of  Metal,  we  can  do  all  you  need  to  it:   We  Machine  Itâ&#x20AC;Ś  Punch  Itâ&#x20AC;Ś  Laser  Itâ&#x20AC;Ś  Saw  Itâ&#x20AC;Ś   Bend  Itâ&#x20AC;Ś  Form  itâ&#x20AC;Ś  Fab  Itâ&#x20AC;Ś  Mill  Itâ&#x20AC;Ś  Drill  Itâ&#x20AC;Ś   Weld  Itâ&#x20AC;Ś  Paint  Itâ&#x20AC;Ś  Assemble  Itâ&#x20AC;Ś   Then,  We  Finish  It  And  Ship  Itâ&#x20AC;Ś  Â
The Plastek Group The  Plastek  Group  is  a  Global  Injection  Mold  Builder,  Molder,  and  Assembler  founded  and  headquartered  in  Erie,  Pennsylvania.  The  company  has  operated  continuously  since  1956  and  has  a  client  list  comprised  mostly  of  Fortune  50  companies.  These  companies  include  Revlon,  Avon,  Energizer,  Unilever,  Procter  &  Gamble,  Tetra  Pak  and  many  others.  Major  Industries  served  include  Personal  Care,  Cosmetics,  Home  Care,  Laundry  Care,  Food  &  Bever- age,  and  Pharmaceutical  Packaging.  Major  products  include  cosmetic  jars,  deodorant  stick  packages,  food  &  beverage  caps,  shampoo  and  conditioner  caps,  eye  dropper  bottles  and  caps,  safety  razor  parts,  baby  wipes  packages,  laundry  caps,  and  many  other  items.
With  state-Âof-Âthe-Âart  manufacturing  opera- WLRQV LQ (ULH 3HQQV\OYDQLD 0DQVÂżHOG 8. and  Indaiatuba,  Brazil,  Plastek  is  a  global  supplier  to  many  of  its  customers.   To  remain  competitive  and  keep  the  com- SDQ\ JURZLQJ 3ODVWHN PDNHV VLJQLÂżFDQW investments  in  people  and  training,  automa- tion,  and  other  leading-Âedge  technologies.  7KLV DOORZV RXU FRPSDQ\ WR ÂżJKW ERWK 8 6 and  overseas  competition,  keep  the  jobs  we  have,  and  create  more. Throughout  our  history,  Plastek  has  under- stood  that  the  key  to  our  success  lies  in  our  hard-Âworking  and  dedicated  work  force.  Our  company  culture  and  work  ethic  is  common  in  all  divisions,  worldwide,  and  remains  extremely  focused  on  satisfying  our  custom- ers.  We  know  they  have  a  choice  and  we  want  them  to  make  Plastek  their  #1  choice.  Â
Company PROFILE Ridg-ÂU-ÂRak,  Inc. 6RXWK /DNH 6WUHHW North  East,  PA  16509 Phone: 814/725-Â8751 Fax: 814/725-Â5659 E-Âmail: sales@ridgurak.com Web  Site: www.ridgurak.com Number  of  Employees: 350
Ridg-ÂU-ÂRak, Â Inc.
Date  Founded: 1942
Company  Description: Ridg-ÂU-ÂRak  has  a  68-Âyear  history   of  integrity  in  supplying  storage   rack  systems.  As  a  designer,  manu- facturer  and  integrator  of  Material  +DQGOLQJ DQG 'LVWULEXWLRQ 6\VWHPV the  company  provides  the  latest  in  storage  technology  throughout  the  8QLWHG 6WDWHV DV ZHOO DV RWKHU SDUWV of  the  world. Under  President  and  CEO,  John  B.  3HOOHJULQR 6U 3 ( WKH FRPSDQ\ KDV attained  a  prominent  industry  role  in  the  many  engineering  advances  in  rack  safety  and  design  over  the  years.  In  April  2008,  Ridg-ÂU-ÂRakâ&#x20AC;&#x2122;s  SDWHQWHG 6HLVPLF %DVH ,VRODWLRQ 6\VWHP ZDV DZDUGHG ÂżUVW SODFH KRQ- ors  for  â&#x20AC;&#x153;Excellence  for  Innovationâ&#x20AC;?  in  the  earthquake  mitigation  category  at  the  National  Earthquake  Conference  KHOG LQ 6HDWWOH :DVKLQJWRQ 5LGJ 8 Rak  received  the  award  for  develop- ing  a  product  that  would  reduce  the  risk  of  product  loss,  damage  and  personal  injury  around  storage  rack  installations  during  seismic  events. With  more  than  350  employees  and  200,000  square  feet  of  manufactur- ing  space,  the  company  utilizes  auto- mated,  computer-Âcontrolled  produc- tion  lines  and  is  capable  of  producing  over  2  million  pounds  of  rack-Âstorage  V\VWHPV SHU ZHHN 3DLQWLQJ DQG ÂżQ- ishing  lines  comply  with  environmen- tal  guidelines,  and  throughout  the  manufacturing  process,  strict  quality  policies  are  followed  to  ensure  a  reli- DEOH ÂżQLVKHG SURGXFW Ridg-ÂU-ÂRak  has  long  been  engaged  in  reducing  its  environmental  imprint.  From  recycling  programs  to  major  transformations  in  manufacturing  processes,  the  corporate  philosophy  is  to  do  what  is  necessary  to  meet  21st  century  sustainability  expecta- tions. Â
D FRPSOHWH OLQH RI 6HOHFWLYH 5DFNV Drive-ÂIn  Racks,  Push-ÂBack  Racks,  &DQWLOHYHU 6\VWHPV 6KHOYLQJ )ORZ Racks  and  many  specialty  products.  A  nationwide  network  of  more  than  125  professional  material-Âhandling  distributorships  is  complemented  by  the  companyâ&#x20AC;&#x2122;s  regional  sales  managers,  who  work  with  customers  and  distributors  to  bring  the  factory  WR WKH ÂżHOG ,Q DGGLWLRQ 5LGJ 8 5DN SURYLGHV ÂżHOG HQJLQHHULQJ DQG installation  services  with  factory  supervision. Â
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Rack  Manufacturers  Insti- WXWH Âł5 0DUN´ &HUWLÂżFDWLRQ Awarded  to  manufacturers  who  are  committed  to  the  principles  of  continuous  improvement  in  product  design  and  application,  DQG DUH JXLGHG E\ 50, $16, 6WDQGDUGV 2006  Norman  L.  Cahners  $ZDUG Presented  by  Material  Handling  Education  Foundation,  Inc.,  Ridg-ÂU-ÂRak  was  recog- nized  for  ongoing  dedication  to  its  scholarship  program  since  1989,  and  as  an  outstanding  ex- ample  of  commitment  and  return  to  the  Industry. 2008  Excellence  for  Innova- WLRQ $ZDUG The  National  Earth- quake  Conference,  chaired  by  four  earthquake  and  emergency  consortia  groups,  presented  Ridg-ÂU-ÂRak  this  award  for  developing  a  product  that  would  reduce  the  risk  of  product  loss,  damage  and  personal  injury  around  storage  rack  installations  during  seismic  events.
Markets  Served: A  company  of  many  products  and  capabilities,  Ridg-ÂU-ÂRak  provides  October 2010 > www.mbausa.org > 17
Recover  50%  of  Your   Floor  Space  Being  Organized  =  Increased  Productivity         Act  now  for  a  free  space  consultation.  888-Â470-Â9664  www.acss2000.com    Equipto  â&#x20AC;&#x201C;  Made  in  PA Â
Company PROFILE
ÂŽ Eriez  2200  Asbury  Road  Erie,  PA   16514-Â0608 Phone:  814-Â835-Â6000  1-Â888-Â300-ÂERIEZ  (3743) Web  site:  www.eriez.com
Eriez
E-Âmail: Â eriez@eriez.com
Your First Choice for Contract Manufacturing In order to implement a successful electronic product manufacturing strategy, you must demand excellence from your entire team. Your contract manufacturing partner is a vital member of your operations team, so when choosing a manufacturer for your next product release, you cannot afford to settle for anything less than the very best.
Western PAâ&#x20AC;&#x2122;s specialist for PCBA and system level electronic manufacturing services.
ISO 9001, AS9100, and ISO 13485 Certified Sunburst Electronics, Inc. 420 E. Bayfront Pkwy, Erie, PA 16507 (814) 461-9120
Eriez Continues Growth Through Innovation and Acquisition At  Eriez,  we  believe  innovation  drives  growth.  Innovative  products,  expanding  worldwide  sales,  and  development  of  new  markets  fuels  our  continued  progress.  These  positive  trends  have  lead  to  local  plant  expansions,  acquisitions,  new  equip- ment  purchases  and  a  growing  work  force  that  includes  advanced  engineering  and  VDOHV VXSSRUW 7KHVH LQYHVWPHQWV EHQHÂżW Pennsylvania. Just  this  month,  the  company  completed  the  acquisition  of  HydroFlow  Filtration  and  the  Fluid  Recycling  group.  This  acquisition  posi- tions  Eriez  as  the  leader  in  comprehensive  FRRODQW DQG Ă&#x20AC;XLG PDQDJHPHQW WHFKQRORJ\ serving  the  metalworking  industry.  These  in- GXVWULDO ÂżOWUDWLRQ V\VWHPV DQG Ă&#x20AC;XLG UHF\FOLQJ equipment  maximize  coolant  effectiveness  and  longevity  improving  productivity  and  reducing  disposal  costs. In  addition  to  metalworking,  Eriezâ&#x20AC;&#x2122;  equip- ment  is  used  in  a  variety  of  applications  in  process  industries  such  as  food,  packaging,  mining,  recycling,  plastics,  pharmaceutical  and  more.  Core  products  include  vibra- tory  feeders  and  conveyors  to  move  and  meter  bulk  materials,  magnetic  separators Â
designed  to  remove  damaging  tramp  metals  IURP SURFHVV Ă&#x20AC;RZV DV ZHOO DV LQGXVWULDO metal  detectors  and  X-ÂRay  inspection  sys- tems  to  ensure  product  integrity. In  mining,  Eriezâ&#x20AC;&#x2122;  magnetic  equipment  sepa- rates  the  valuable  iron  ore  from  the  rest  of  the  mined  materials  and  in  scrap  metal  processing  plants  the  equipment  sorts   various  metals  to  improve  their  value. Eriez  is  committed  to  remaining  the   worldwide  leader  in  advanced  technology  for  Magnetic,  Vibratory  and  Inspection   Applications.
Company PROFILE
+RZDUG ,QGXVWULHV  6400  Howard  Drive  Fairview,  Pennsylvania  16415 Web  site:  www.howardindustries.com
Company  Description: Howard  Industries  is  a  leading  national  manufacturer/wholesaler  of  Architectural   6LJQDJH 6\VWHPV DQG LV LQWHUQDWLRQDOO\  NQRZQ IRU LWV ([WUXGHG $OXPLQXP :D\ÂżQGLQJ 6LJQV DQG 'H6LJQ 6WRQH 0RQXPHQW  6LJQDJH :LWK D UHSXWDWLRQ IRU KLJKHVW  quality  craftsmanship,  unparalleled  delivery   and  prompt  responsiveness,  Howard   Industries  is  considered  to  be  the  â&#x20AC;&#x153;Cadillacâ&#x20AC;?   of  the  sign  industry. Howard  Industries  currently  occupies  a   50,000-Âsquare-Âfoot,  technologically   DGYDQFHG RIÂżFH SURGXFWLRQ IDFLOLW\ LQ WKH  6WHUUHWWDQLD %XVLQHVV 3DUN LQ 0F.HDQ  Township.  Here,  the  48-Âplus  person  staff   designs  and  manufactures  both  standard   and  custom-Âdesigned  modular  signage   systems,  including  a  variety  of  extruded-  DOXPLQXP VLJQV DQG 'H6LJQ 6WRQH HSV  monument  signs  with  thousands  of  design   FRQÂżJXUDWLRQV 1HYHU D FRPSDQ\ WR UHVW RQ  its  laurels,  Howard  Industries  leads  the  way   in  adopting  new  strategies  and  cutting-Âedge   sign  fabricating  technologies.  Its  manu-  facturing  process  is  under  a  continuous  improvement  mandate,  and  the  company   is  always  looking  to  new  markets. Â
$ *OLPSVH RI 5HFHQW (YHQWV LQ D *URZLQJ /HJDF\ Phone  Numbers:  800/458-Â0591   814/833-Â7000
Howard  Industries
E-Âmail:  sales@howardindustries.com Date  Founded:  1928
Â&#x2021; :LWK LWV EHJLQQLQJV GDWLQJ EDFN WR WKH 1920s,  Howard  Industries  has  a  company  history  rich  in  growth,  change  and  success.  8QGHU &(2 *DU\ 6FKQHLGHU DQG 3UHVLGHQW 3DWULFN 6XWWRQ WKH FRPSDQ\ FRQWLQXHV WR carve  out  an  aggressive,  forward-Âthinking  business  plan  as  a  manufacturer  and  innovative  sign  industry  leader.  Â&#x2021; ,Q +RZDUG ,QGXVWULHV GHYHORSHG the  PRIME  Sign  Program  to  meet  the  needs  of  institutional  and  corporate  clients  that  require  complete  sign  project  management.  Project  managers  and  design  personnel  are  teamed  to  provide  industry-Âleading  campus  master  planning,  sign  audits,  site  surveys,  architectural  signage  solutions,  permit  acquisition,  and  installation  management.  Regional  clients  EHQHÂżWLQJ IURP WKHVH VHUYLFHV LQFOXGH 3HQQ 6WDWH 8QLYHUVLW\ 6KLSSHQVEXUJ 8QLYHUVLW\ 6KHSKHUG 8QLYHUVLW\ *DQQRQ 8QLYHUVLW\ Mercyhurst  College,  Edinboro  University,  Hamot  Medical  Center  and  satellite  facilities,  6DLQW 9LQFHQW +HDOWK 6\VWHP DQG VDWHOOLWH facilities,  LECOM  Wellness  and  Millcreek  Community  Hospital,  Geisinger  Healthcare  Facilities,  and  First  National  Bank  corporate  headquarters  and  branches,  to  name  a  few.
which  exclusively  markets  and  provides  /(' LOOXPLQDWHG 7UDIÂżF &RQWURO 6LJQV WR an  increasing  variety  of  target  industries. Â&#x2021; ,Q DQG DJDLQ LQ +RZDUG Industries  was  honored  as  an  Inc.  5000  company.  This  recognition  was  a  tribute  to  the  companyâ&#x20AC;&#x2122;s  growth  during  both  years. Â&#x2021; ,Q WKH FRPSDQ\ HDUQHG D Pennsylvania  Department  of  General  6HUYLFHV &267$56 &RQWUDFW  for  signage.  Participation  in  this  program  allows  state  entities,  municipalities  and  WRZQVKLSV WR SXUFKDVH LGHQWLÂżFDWLRQ DQG ZD\ÂżQGLQJ VLJQDJH XQGHU RQH FRQWUDFW without  time  intensive  research  and  ELG SURFHGXUHV $UHD FOLHQWV EHQHÂżWLQJ IURP WKHVH VHUYLFHV LQFOXGH 3HQQ 6WDWH University  (13  satellite  campuses  in  6KLSSHQVEXUJ 8QLYHUVLW\ 6OLSSHU\ Rock  University,  Edinboro  University,  Hamot  Medical  Center  and  satellite  facilities,  Geisinger  Healthcare  Facilities,  DQG 6DOXV 8QLYHUVLW\ Â&#x2021; ,Q WKH FRPSDQ\ SDUWQHUHG ZLWK *3 5RDGZD\ 6ROXWLRQV DQG 6(3&2 LQ providing  solar-Âpowered  LED  illuminated  LGHQWLÂżFDWLRQ GLUHFWRU\ VLJQV IRU VHYHQ University  of  Hawaii  Community  College  locations  throughout  the  islands. Â&#x2021; ,Q ODWH +RZDUG ,QGXVWULHV introduced  the  HID  Interior  Signage  System 6HHLQJ D QHHG IRU D TXLFNO\ available,  versatile  system  for  interior  IDFLOLW\ LGHQWLÂżFDWLRQ ZD\ÂżQGLQJ DQG information,  the  experts  in  exterior  signage  applied  like-Âminded  design  and  production  concepts  to  creating  a  cost-Âeffective  interior  sign  system.  The  new  HID  interior  system  offers  functional  versatility,  contemporary  modular  appeal,  stylish  design  accents,  user-Âserviceable  (laser  printed  paper)  message  inserts,  and  easy  to  install  mounting  options  â&#x20AC;Ś  all  at  a  price  everyone  can  appreciate!
Â&#x2021; ,Q ODWH WKH FRPSDQ\ÂśV EXVLQHVV SODQ recognized  the  need  to  further  streamline  production  and  offer  more  focused  service  to  three  distinctive  customer  groups.  From  +RZDUG ,QGXVWULHV $UFKLWHFWXUDO 6LJQDJH WZR DGGLWLRQDO GLYLVLRQV ZHUH FUHDWHG:  'H6LJQ 6WRQH 6LJQV IRFXVLQJ RQ WKH manufacture  and  the  further  development  RI (36 0RQXPHQW 6LJQV DQG L6,*16 ,QF October 2010 > www.mbausa.org > 19
Our Clients, including these companies showcased in this issue, are world class, and we strive to maintain the same level of excellence. Industrial Sales & Manufacturing, Inc.
Property, Liability and Workers’ Compensation Insurance Agents The only insurance agent in the country to earn the Quality Award by the leading national association of corporate risk managers.
Assisting our clients in… ZĞĚƵĐŝŶŐ ĐŽƐƚƐ ͻ džĞĐƵƚŝŶŐ ďƵƐŝŶĞƐƐ ƐƚƌĂƚĞŐŝĞƐ ͻ PƌŽƚĞĐƚŝŶŐ ĂƐƐĞƚƐ ͻ ǀĂůƵĂƚŝŶŐ ĂĐƋƵŝƐŝƚŝŽŶƐ ͻ IŶĐƌĞĂƐŝŶŐ ǁŽƌŬĞƌ ƐĂĨĞƚLJ ͻ Managing risk
123 West Ninth Street, Erie, PA 16501 www.imcerie.com 814-‐452-‐3200 john.bloomstine@imcerie.com
Our customers make the products.
We FINISH them. American Tinning & Galvanizing Company (ATG) specializes in the corrosion control of metal, steel and aluminum by providing “finishing” services. ATG was founded in Erie, Pennsylvania in 1931 by Fred Carlson and is a third generation, family-owned business, currently managed by Jacqueline “Robin” Scheppner. Starting as a tinning business with one employee, ATG has expanded its metal finishing capabilities to more than 15 different specialized processes. ATG has validated its quality systems by earning the prestigious NADCAP aerospace accreditation for six consecutive years, and has the honor of being one of the select chemical suppliers to earn the “with merit” distinction for our chemical processing and quality systems. The company also has received accreditation from many successful businesses such as Bell Helicopter, Lord Manufacturing and Sierra Nevada Corporation. ATG doesn’t stop at providing quality metal finishing to more than 400 customers throughout Pennsylvania and the U.S.—we also strive to create long-term beneficial relationships by continually seeking new product lines and capabilities to accommodate our customers’ needs. We want to be your “one stop shop” for finishing your products. ATG employs more than 60 employees and occupies 72,000 square feet of production, fabrication and warehouse space on the same corner it did more than 79 years ago. Carlson Erie Corporation was founded as a plating equipment supplier by the Carlson Family in 1955, and merged with ATG in 2004. The company specializes in custom fabricated plating fixtures, racks, and metal and plastic tanks. Our customers include: Recreate LOGO
022*
Menu of Metal Finishing Processes Architectural Bronze Anodizing Chromic Acid (MIL-A-8625 type I) Sulfuric Acid Anodizing (MIL-A-8625 type II) Chromate Conversion Coatings (MIL-C-5541) Cadmium Plating (QQP-416) Zinc Plating (ASTM-B633) Hot Dip Galvanizing Pickling & Oil Services (GE Spec. P4D-EP9 & EP8) Electroless Nickel Plating Nickel Plating (QQ-N-290) Copper Plating Zinc Phosphate Black Oxide Finishing
552 West 12th Street 2 Erie, PA 16501 2 Phone: 814-456-7053 2 Fax: 814-459-3297 2 www.galvanizeit.com
HR Connection MEDICAL INSURANCE COSTS RISE FOR MANUFACTURERS Like most employers, manufacturers across the country are seeing their medical costs skyrocket. The newly released 2010 Compensation Data Manufacturing Survey results show manufacturing companies had an average premium increase of 11 percent. More than 80 percent of survey respondents report paying more than $7,200 annually for an employee plus family plan. To reduce costs, manufacturing companies employed a variety of methods. Increasing the employee portion of the premium was most prevalent at 56.7 percent, with an increase in deductible levels following at 46.9 percent. MANUFACTURERS FIND VALUE IN TIME-OFF PROGRAMS With the U.S. economy on shaky ground, manufacturing companies across the country are searching for alternative ways to reward their employees, such as time-off programs.
Insurance Postings from Patty
Assistant Secretary of Labor Phyllis C. Borzi has issued the following statement regarding the current statu s of the Consolidated Omnibus Budget Reconciliation Act (COBRA) subs idy: The American Recovery and Reinvestment Act (ARRA) “provides a COBRA premium reduction for eligible individuals who are involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experienc e involuntary terminations after May 31, 2010. However, individua Patty Smith is ls who qualified on or the before May 31, 2010 may continue to pay reduced premiums for director of Employee Be up to 15 months, as long as they are not eligible for another group th nefit Services at e Manufacture health plan or Medicare. Unless the suns r& et date is extended by Business Asso Congress, individuals who lose their jobs ciation. after May 31, 2010 will not be eligible for the subsidy.” For more information, contact me at psmith@mbausa.org, 800/815-2660 or 814/833-3200.
Results of the 2010 Compensation Data Manufacturing Survey show that exempt employees with less than one year of service earn an average of 3.7 vacation days, while non-exempt employees earn three days. More than 80 percent of the manufacturing companies offering paid vacation to employees use years of service to determine
the number of days an employee can accrue. “In retaining top employees,” researchers suggest, “many organizations are finding enhancements to time-off programs may be a viable alternative to granting pay increases.”
Complexity. Growth. Cutting Edge Technology.
Since 1984, over 1.0 billion precision machined parts produced in northwest PA and still counting … Corporate Headquarters 7626 Klier Drive Fairview, PA 16415
22 < www.mbausa.org < October 2010
Erie Plant 1944 Wager Road Erie, PA 16509
www.atpteam.com
DEPARTMENTS > Contact: John Onorato
What’s the Best Way to Motivate Your Employees in a Down Economy? The goal of your compensation system should be simple – to attract, retain and motivate employees in a way that is easy to administer and that is legally compliant. But some things are easier said than done. While the economy was booming, firms had to worry about retaining employees. It was a seller’s market for labor, and the emphasis was on offering competitive wages and benefits so that you could keep a hold of employees. Today, the challenge is different: How do we use our compensation policies to motivate employees while keeping a lid on labor and benefit costs? One possible way to do so would be to link some aspect of compensation to performance. As research suggests, most employees look at different facets of their compensation differently. According to experts, employees view their benefits as an entitlement, their hourly wage as an
exchange for time given to the employer, and performance-based pay reward for a job well done. Because of the way compensation is viewed by the employee, most employers will never get increased performance because of an increased benefit. (Who gets up in the morning and says, “I am going to work harder today because I have dental coverage”?). Nor will you get increased performance because of an increase in the hourly rate. Generally speaking, a behavior-based incentive plan may be the best method for increasing performance of your workers. When instituting such a program, it is important that you base the incentives on activity that creates additional revenue. If the revenue is not generated, the incentive is not provided. This selffinancing feature of the incentive program makes it good for either a down or a robust economy. In addition, you need to determine if the incentives should be individual, by
department, or be applied throughout the whole organization. The timing and the size of the incentive also must be determined as these have a tremendous bearing upon the success of the program. Finally, the incentive must be frequent enough so that individuals feel that they can achieve it, but not so frequent that they begin to feel a sense of entitlement. For more information, please contact me at 814/833-3200, 800/815-2660 or rbruno@ mbausa.org. Rose Bruno is a PHR-certified HR generalist at the Manufacturer & Business Association.
Erie company, specializing in quality and service in plate & miscellaneous structural steel fabrications since 1974 Manufacturing and sales of quality metal products since 1979 New product line dedicated to creating innovative solutions for maritime military customers Producing Innovative Solutions That Meet Customer Needs
12 Port Access Rd.
Erie, PA 16507
(814) 459-3797
www.McShaneMetalProducts.com
www.McShaneWelding.com www.RockeSolid.com
October 2010 > www.mbausa.org > 23
Solutions you need with the service you want. Â Â Â Â Â Â Â Â Phone: Â Â 814.677.0716
2099  Hill  City  Road  Seneca,  PA   16346   U.S.A. www.matric.com
With 16 years experience, Ken Polk has helped businesses succeed across Erie, PA and Jamestown, NY.
           FAX:   814.678.1301
Ken Polk, District Manager 814-460-4570 | ken_polk@adp.com
Email: Â Â sales@matric.com
The ADP logo, ADP, and The business behind business are registered trademarks of ADP, Inc. Š2010 ADP, Inc.
$'380$ (ULH 3$ $G LQGG
Electronic  Manufacturing  Assembly  Services  (PCBâ&#x20AC;&#x2122;s)
30
Electronic  Communication  Services,  Inc. Â
Electronic  Contract  Design  Services
Erie, Â PA Â
814-Â455-Â4181 Â
Aftermarket  Services/Repair
800-Â837-Â5790 Â
Electromechanical  Assembly  (Box  Build)
ecs@ecsinc.us.com  www.ecsinc.us.com  Est.  1989 Â
Â
Telephone  Systems   Digital  /  VOIP   Wired  /  Wireless  Data  Networks   Wired  /  Wireless  Unified  Communications  Cabling   Telephone  /  Data Â
Cable  Assembly  and  Cable  Overmold â&#x20AC;&#x153;The  Erie  Water  Works  has  utilized  the  services  and  equipment  of  Electronic  Communication  Services  since  June  1996.   Responses  to  inquiries  are  always  rapid  and  reliable.  We  are  pleased  with  the  services  we  receive  from  Electronic  Communication  Services,  and  we  would  highly  recom- mend  this  company.â&#x20AC;?    Erie  City  Water  Authority    Erie,  PA Â
Company PROFILE JTM  Foods,  Inc.  (DVW UG 6WUHHW  Erie,  PA  16510 Phone:  814/899-Â0886 Web  site  www.jtmfoods.net
JTM Foods, Inc.
Employees:  More  than  100 Founded:  1986
JTM Foods, Inc. JTM  Foods,  Inc.  was  established  in   1986  as  a  family  owned  bakery  located  in  Erie,  Pennsylvania.  The  bakery  began   operations  with  one  production  line  that  made  chocolate  cupcakes.  At  the  time,  there  were  18  employees.  Today,  however,  JTM  Foods  employs  more  than  100  people  and  operates  two  production  lines  that  manufacture  a  variety  of  different  products.
JTM  Foods,  Inc.  introduced  the  Marsh- mallow  Crispy  in  1994.  The  original  recipe  is  still  used,  and  truly  â&#x20AC;&#x153;Tastes  just  like  what  Grandma  used  to  make.â&#x20AC;?  In  2006,  JTM  retooled  this  line  and  now  makes  three   GLIIHUHQW Ă&#x20AC;DYRUV RULJLQDO UHFLSH FKRFRODWH chip  and  chocolate  rainbow  sparkles,  and  all  are  offered  in  a  variety  of  sizes  and   packaging.
In  1990,  JTM  Foods,  Inc.  introduced   WKH RXQFH )UXLW 6QDFN 3LH 7KLV SLH ZDV RIIHUHG LQ VL[ Ă&#x20AC;DYRUV DSSOH FKHUU\ chocolate,  lemon,  berry  and  peach.  With  UHDO IUXLW ÂżOOLQJ DQG GRXJK WKDW LV PDGH GDLO\ sales  from  this  item  continued  to  grow.  In  2000,  JTM  introduced  a  new  innovative  packaging  concept,  â&#x20AC;&#x153;the  pie  in  the  box,â&#x20AC;?  which  led  to  JTM  Foods,  Inc.  investing  millions  of  dollars  to  create  a  high-Âspeed  production  line  that  is  now  fully  automated.  Currently,  the  company  makes  millions  of  snack  pies  a  year.
JTM  Foods,  Inc.  success  comes  from  providing  superior  customer  service  and  a  great  quality  product  at  a  valued  price.  The  FRPSDQ\ PDUNHWV )UXLW 6QDFN 3LHV DQG Marshmallow  Crispyâ&#x20AC;&#x2122;sâ&#x201E;˘  under  the  widely  recognized  JJâ&#x20AC;&#x2122;sÂŽ  label,  while  also  providing  private  label  programs  to  some  of  the  top  UHWDLOHUV LQ WKH 8QLWHG 6WDWHV
EDITORIAL > by Matthew R. Loeffler, CPA, CFP®, CTFA, CMA
In The Bank
Explore Your Investment Strategies During This Time of Volatility, Uncertainty Given the market volatility of the last decade, many investors wonder if the historical average returns of the equity and bond markets will be experienced in the future. While economists and analysts evaluate the capital markets, opinions vary strongly as to what the future may bring. One common belief among many advisers is that capital market volatility is here to stay. In order to decrease investment portfolio volatility, some advisers are adopting new, alternative investment strategies to provide better diversification. If we look back 10 years ago, portfolio diversification was mainly sought within the capital markets through style diversification, capitalization allocation, asset class diversification and global investing. Given the lack of correlation that was experienced through the various investment classes and styles previously noted, investing diversification was truly experienced through the end of the 20th century. So what happened? Over the past decade, market volatility increased significantly and certain asset classes began to perform more in tandem with each other than historical experience has provided. For example, it was a long-held belief that one of the most significant diversification strategies for stocks was to allocate among domestic and international companies given the historical lack of correlation among international economies. As globalization has intertwined many economies, domestic and international stocks no longer have such a significant lack of correlation. Alternatives So, given the increase in investment volatility and uncertainty, what strategies have provided investors with reduced volatility and/or a competitive
total return? Consider the following: 1. Hedge Strategies — I know, the word “hedge” is absolute taboo to many investors. However, hedging can take on many different forms and, when used appropriately, certain strategies have proven to reduce volatility and/ or provide excess return, when compared to an appropriate benchmark, over the long term. Two popular strategies are: Long/ Short Hedge Funds for decreasing stock volatility, and Absolute Return Strategies to provide for portfolio stabilization in a rising interest rate environment. 2. Real Estate Investment Trusts 3&*5T — With the depreciation in real estate values, many investors would have been happy to have no exposure in this area. However, from the context of seeking investments that have a lack of correlation to the capital markets, certain REITs have proven to accomplish that goal. Consider the following investment return comparison for the 10-year period ending June 30, 2010: t (MPCBM 3&*5 1FSGPSNBODF 5IF FTSE EFRA NAREIT Global Index produced an annual return of 8.81percent. t -BSHF $PNQBOZ 4UPDL 1FSGPSNBODF — The S&P 500 Index produced an annual return of -1.81 percent. The complexity and diversification of REITs needs to be understood before investing in them. Global REITs can provide for diversification from several venues. 3. Commodities — I know this isn’t an original thought and the collapse of the capital markets from 2007 to 2009 brought commodity prices down as much
as stocks, if not more. However, with the current stabilization of the global economies, the future growth of foreign economies, commodities still can provide a good investment return for investors with decreased volatility. Investors can seek commodity linked returns through exchange traded funds or through a diversified portfolio of futures contracts. Since this can be a complicated area to understand how to invest, I strongly recommend you seek the advice of a competent investment professional. While many investors have experienced disappointment over the last 10 years with their investment endeavors, bear in mind that the biggest decision one must make is how much to allocate between stocks and bonds. That decision alone provides 90 percent of an investor’s total return. The job of an investment adviser is to help you understand your investment return expectations and your tolerance for risk. From that point, it is the adviser’s job to make the strategic allocations to reduce volatility and provide excess market returns. For more information, contact Matthew R. Loeffler at BNY Mellon at matthew.loeffler@bnymellon.com or 814/874-5208. Matthew R. Loeffler, CPA, CFP®, CTFA, CMA is the senior sales director for Bank of New York (BNY) Mellon Financial Corporation in Pennsylvania. He works with clients in helping with retirement planning, estate and income tax planning and business succession planning.
October 2010 > www.mbausa.org > 25
Legal Q&A HOW CAN CONFIDENTIAL INFORMATION AND TRADE SECRETS BE PROTECTED? Employees will inevitably come and go. Employers should be prepared and have precautions in place to minimize the possibility of trade secrets and confidential information leaving with employees. There are several ways an employer can â&#x20AC;&#x153;protectâ&#x20AC;? information, to include: t 4FFLJOH MFHBMMZ QSPUFDUFE TUBUVT BT â&#x20AC;&#x153;trade secretsâ&#x20AC;?; t -BCFMJOH JOGPSNBUJPO DPOGJEFOUJBM and treating the information confidentially; and t %FWFMPQJOH QPMJDJFT BOE FOGPSDJOH written employment agreements. Employers should adopt specific policies and procedures in the hiring process, as routine business practices, and during the exit process to maximize protection.
26 < www.mbausa.org < October 2010
WHAT IS A TRADE SECRET? A trade secret is information that derives independent economic value from not being generally known and is the subject of reasonable efforts to maintain its secrecy. Examples of trade secrets include: t GPSNVMBT BOE QSPDFTTFT GPS FYBNQMF the formula for Coca-Cola) t iLOPX IPXw B QBSUJDVMBS combination or ordering of known information) t PQFSBUJPOBM JOGPSNBUJPO TVQQMZ sources, pricing methods, business plans, salary information) t DVTUPNFS MJTUT Realize that if the information is generally known or not treated as a â&#x20AC;&#x153;secret,â&#x20AC;? it will not have the status of protected information. WHAT IS CONFIDENTIAL INFORMATION? Information that is confidential but does
not meet the legal tests for protection as a trade secret may still have legal protection. Since the courts have used the following questions to determine if an employer took precautions to guarantee that certain information was protected, it would be wise for employers to adopt the following as an internal self-audit: 1. Were employees notified that information was confidential? 2. Was access to the information restricted by passwords or passcodes, alarms or the equivalent? 3. Was the location of the information restricted? 4. When access was granted, were there notices advising that the material was confidential? 5. Were there nondisclosure agreements negotiated with suppliers, vendors or other third parties to protect the confidentiality of the information?
DEPARTMENTS > Contact: John Onorato
Safeguard Your Organization’s Innovations What do bubble gum, bifocals, the Slinky, the lightning rod, soda pop, the Ferris wheel and the revolving door have in common? They were all invented in Pennsylvania. From Ben Franklin to the present, Pennsylvania has been blessed with its share of inventors and innovators. Fortunately, to protect Pennsylvania innovation and foster more of it, the General Assembly passed Pennsylvania’s version of the Uniform Trade Secrets Act in 2004. One of the most difficult questions in trade secrets law is whether a given piece of information is a “trade secret” that is entitled to legal protection. Generally speaking, if a given piece of information is readily known or can be easily obtained by others, it is not a trade secret. If it is not readily known or ascertainable, and if a business has done what it can to keep the information secret, then it generally is a trade secret.
Consider the Big Mac, first created in Pennsylvania by the way, and its special sauce, the ingredients of which are a “trade secret” of McDonald’s. The Act defines a “trade secret” as “information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that: 1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use”; and 2) “is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Simply put, before an owner of a trade secret is entitled to a legal or equitable remedy for another’s use of that trade secret, the owner must prove that the trade secret was “misappropriated.” A trade secret is “misappropriated” if it is
acquired “by a person who knows or has reason to know that the trade secret was acquired by improper means” or if a trade secret is disclosed without permission by a person who had a “duty to maintain its secrecy or limit its use.” If you believe that any of your organization’s trade secrets have been misappropriated, or are about to be, consult with legal counsel quickly, before that valuable information becomes public knowledge. Attorney John Onorato is the vice president/ general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.
J.H. J.H. BENNETT M BENNETT MOVING & STORAGE INC. J
A A Family Tradition Since 1 Family Tradition Since 1914 A
Celebrating our 95th year in business!
Providing full-service relocation and transportation services... from anywhere in the U.S. ... to anywhere in the U.S. 814-456-5377 1-800-452-8668 1705 Raspberry Erie, PA 16502 www.jhbennett-moving.com October 2010 > www.mbausa.org > 27
BENEFIT CONSULTANTS, INC. â&#x20AC;&#x153;Finding Solutions Beyond the Obviousâ&#x20AC;? Finding comprehensive personal and business insurance at affordable rates is D FKDOOHQJH LQ WRGD\¡V XQHDV\ PDUNHWSODFH QR PDWWHU ZKDW EXVLQHVV \RX¡UH LQ (PSOR\HU¡V FRYHUDJH QHHGV PD\ YDU\ EXW WKHLU ERWWRP-line objectivesâ&#x20AC;&#x201C; value and affordability remain the same. At Davevic Benefit Consultants, Inc. we look for ideas not excuses. As one of WKH UHJLRQ¡V OHDGLQJ SURYLGHUV RI JURXS DQG LQGLYLGXDO KHDOWK FDUH FRYHUDJH employee benefits, financial and Pension planning, we know how and where to find solutions that lie beyond the obvious.
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Company PROFILE Networking Technologies 3910 Caughey Road Suite 207 Erie, PA 16506 Contact: Jim Bahm, President Ned Reade, Vice President Steve Miller, Sales Web Site: www.net-cloud.com Date Founded: September 1998 Employees: 13 Market Reach: Continental United States Specialty Markets: Healthcare Manufacturing Telecom Small / Medium Business
Managed & Company Description: Network Assurance Services: Founded in 1998 by Jim Bahm and Ned Reade, as a data communica- In 2008, Networking Technolo- tions consulting firm, Networking gies expanded their offerings to Technologies has evolved to pro- include Managed Professional vide high-end IT support, consult- Services. Expanding the net- ing and technical services. With work monitoring and service extensive experiences in healthcare, assurance services, their trade- education, government, business marked Cloud Control® Ser- and industry, Networking Tech- vice introduced Networking nologies has grown to be one of the Technologies’ first remote outpremier IT service companies in the sourced IT service. region. With the IT landscape becoming more and more complex, the lead- ing companies in Northwestern Pennsylvania have turned to Net- Cloud Control® marked the working Technologies to resolve first affordable solution for cli- issues requiring unique skills and ents to predictably manage their abilities. By keeping abreast of the IT costs. With an established latest cutting edge technologies, Networking Technologies is able to nationwide customer base and participation in the MSP Alli- provide creative and effective solu- ance, Networking Technologies tions for difficult IT challenges. continues to lead this relatively new industry. Consulting & Professional IT Services: Community Involvement: Reaching a national presence, cli- Networking Technologies is ents have relied on Networking proud to continue to support the Technologies’ consulting services following regional programs: to provide project management, technical direction and IT business consulting for projects ranging from Crohn’s and Colitis Foundation of America, an organization simple 6,000 mailbox mail server transitions to 250,000 user network dedicated to finding a cure for Crohn’s disease and ulcerative mergers. colitis. Networking Technologies is com- Lake Erie PRIDE, an organiza- mitted to providing the best techni- tion of Erie youth dedicated to cal resources for their customers. With established partnerships with being and promoting a Safe and Drug-Free Youth. industry leaders, the company maintains insight and direction into the ever-changing data communica- Ellen Curry Foundation, an or- ganization which provides tions industry. While maintaining scholarship opportunity to ele- their mission: mentary school children to lead “To be Customer Centric Provider them to economic self suffi- of Data Communications Consult- ciency. ing and Technical services.”
JOIN THE KEEP PENNSYLVANIA PRODUCING COALITION
A division of the Manufacturer & Business Association’s (MBA) Government Affairs Department, Keep Pennsylvania Producing (KPP) is the MBA’s newest and most advanced grassroots initiative, putting advocacy opportunities at your fingertips. KPP educates its members through quality and timely information, while motivating them to take action in simple and effective ways. The Coalition represents the MBA’s more than 4,700 member companies located in 27 counties across Pennsylvania. KPP exists as a way for the business community to influence legislators and legislation that is coming out of Harrisburg and Washington, D.C. Through its educational resources and events, the Coalition aims to motivate its members to take action — and promote a unified, pro-growth, pro-business agenda. Join now at www.keepproducing.org! To learn about the five things you can do to keep Pennsylvania producing, see our special flyer in the digital edition of this month’s Business Magazine at www.mbausa.org. Plus, download your free copy of the KPP’s Grassroots Advocacy Handbook at www.keepproducing.org.
FlowformingPlus
Industries We Serve
PMF offers concept to completion manufacturing with engineering consultation across a broad range of manufacturing capabilities, including flow forming, rotoforming, electromagnetic forming, hydroforming, laser cutting, machining, heat treating, and press forming.
Flowforming can be used in any industry that requires complex, hollow metal parts. Our most common industries include: f Aerospace f Environmental f Filtration f Food Processing f Medical f Military f Micro-Electrontics f Pharmaceutical f Pulp and Paper
Flow forming is a lesser-known cold-extrusion metal-forming technique that makes seamless, near-net, complex, hollow metal parts. It has the capability to produce parts with varying wall thicknesses and control wall tolerances to within a few thousandths of an inch.
Benefits of Flow Forming Seamless Parts–Create a single part with a varied wall thickness and without welds. By reducing the welds, we reduce the amount of extra testing that is required on the final part. Less Weight–Flow forming allows the finished part to have varying wall thicknesses, which reduces the overall weight of the part. In addition, flow forming allows you to form many lighter weight materials that may be hard to form by other processes. Less Cost–Enables the one-piece construction of assemblies and saves money in material and assembly costs.
Certifications f Nadcap:
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PMF Industries, Inc. Precision Metal Forming 2601 Reach Road · P.O. Box 3186 Williamsport, Pennsylvania 17701 USA Email: sales@pmfind.com Website : w w w.flow formingp lu s .com Blog : w w w.in sid ep mf.com
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OntheHill
DEPARTMENTS > Contact: Sheila Sterrett
Victory 2010: Electing a Pro-Business Congress Sheila Sterrett is the director of Government Affairs for the Manufacturer & Business Association. Contact her at 814/8333200, 800/815-2660 or ssterrett@mbausa.org.
Made in Pennsylvania. This phrase is the most literal when speaking of products manufactured here in the Commonwealth. According to the National Association of Manufacturers, in 2009, the industry comprised more than 10 percent of the total employment in the state, with nearly 600,000 employees earning, on average, approximately $12,000 more than their nonmanufacturing counterparts. Unlike the spend-to-save mentality of the current administration, manufacturing is a proven strategy to keep our work force employed. That is why it is so important to foster a positive business environment at the state and federal government levels. A competitive business climate is key to keeping and growing the number of jobs in the Commonwealth, and it’s necessary that legislators understand that point. On November 2, Pennsylvanians will head to the polls to elect one U.S. senator, 19 representatives to Congress, a new governor, 25 state senators and 203 state representatives. Do you know who your candidates are? More importantly, do you know what they represent? Are you going to vote for the candidates who promise to grow the economy, instead of spending money we don’t have? One of the top 10 ways to be a business advocate is to register to vote and exercise this right in both the primary and general elections. Another important way to be a business advocate is to stay informed. Read the newspaper, listen to the radio, receive e-newsletters from the Manufacturer & Business Association (MBA), watch the news and visit www. keepproducing.org to stay up to date on the latest candidate news. You also should visit candidates’ Web sites to read their full position statements. At right are four very important issues that the MBA has identified as critical to its members. Do you know where your U.S. Senate candidates stand on these important issues? Once you’re aware of their political positions, visit www.keepproducing.org to find out about the other 2010 candidates, and remember to vote on Tuesday, November 2.
Pennsylvania’s U.S. Senate Candidates
Joe Sestak - D
Pat Toomey - R
Tort Reform
Opposes capping medical liability damages at $250,000. Source: Washington Examiner, February 26, 2010
Supports tort reform as a component of health-care reform that will help reduce costs. Source: www.toomeyforsenate.com
Estate Tax
Voted in favor of HR 4154, which would make a high estate tax rate permanent. Source: www.nam.org
Co-sponsored HR 8, the Death Tax Elimination Act, calling for the phaseout of estate and gift taxes over a 10-year period. Source: www.ontheissues.org
2009-2010 Health-Care Reform
Endorsed HR 3962, the House version of healthcare reform legislation. Also voted in favor of HR 3590, the Patient Protection and Affordable Care Act — the Senate-passed version of health-care reform legislation. Source: www.nam.org
Called on the Pennsylvania Congressional delegation to reject HR 3962. Forcefully denounced the passage of HR 3590 and pledged to “repeal and replace” the legislation if elected. Source: www.toomeyforsenate.com
Climate Change Mandates
Claims that the WaxmanMarkey climate change bill was the minimum needed to combat climate change and supports the EPA Endangerment Finding. Source: www.sestak.house.gov
Opposes cap-and-trade legislation on the premise that it will raise the price of energy and cost jobs. Source: www.toomeyforsenate.com
October 2010 > www.mbausa.org > 33
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energy & green strategies performance improvement new product development
succession planning lean & six sigma implementation sales & management development
Designed to address today’s emerging topics and trends, IMC’s training programs can provide the essential capabilities and cultural transformation you need to compete in your marketplace. Dynamic, application-driven session leaders draw from experience and a variety of backgrounds.
For More Information: Contact Lauri Moon at 570.329.3200 X8085, 800.326.9467 or laurim@imcpa.com
The original lead-free frangible bullet!
For over 10 years, SinterFire, Inc. has been the preferred supplier of lead-free frangible projectiles. Located in the rolling hills of Kersey, Pennsylvania, this family owned business has provided products that are being used by our military, law enforcement and security agencies. The SinterFire bullet has become the standard for new technology in the world of military/law enforcement training and duty applications, home defense, and competitive shooting with features such as: Lead-free Reduced Hazard Environmentally Friendly Materials No Ricochet, Frangible Composition Up Close Capable Over the years, SinterFire has received recognition for their achievements by their peers, customers and supporters. We are a proud supporter of those who put their lives on the line every day for the freedoms we enjoy as Americans.
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For a better look at SinterFire, Inc. and the products they produce, call (814)-885-6672 or visit www.sinterfire.com.
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EnergyUpdate
EDITORIAL > by J. David Bell
Investment in a Low-Cost Energy Program is Good Business EEA-PA Already Has Saved Members More Than $1 Million in Electricity Costs The Manufacturer & Business Association (MBA) recently announced the successful rollout of its low-cost energy program, the Employers’ Energy Alliance of Pennsylvania, Inc. (EEAPA), one of the newest services made available to Association members. “The EEA-PA is a wholly owned subsidiary of the Association and we have already saved participating companies in the PPL territory more than $1 million in electric costs since the beginning of January,” says Association President Ralph Pontillo. “Right now, we are positively positioned to see these savings grow.” Unlike other energy providers, companies enrolled in the EEA-PA are also members of the MBA. They enjoy the savings of the EEA-PA program and the additional benefits of the Association, from free Legal and HR hotlines to insurance and benefit services, legislative updates and much more. “Who else can provide all these services and save you money on your energy costs at the same time?” asks Pontillo. “The benefits to our members are immeasurable.” Rewards of Energy Choice From Erie to Pittsburgh and Sharon to Williamsport, employers across the state will all soon be able to reap the benefits of energy choice. By the end of the year, electric rate caps will be completely removed in Pennsylvania, and the potential savings could have a major impact on many of these businesses’ success and survival. “Energy choice is an important decision to the many employers who are faced with huge energy bills on top of the onerous and burdensome government regulations and taxes that affect their daily operations,” notes J. David Bell, president of the EEA-PA. “By enrolling in a program like ours, we are able to aid these organizations with a new energy savings strategy so they can focus on what they do best.” According to Bell, the EEA-PA is able to get its members greater savings because of its unique business model. “As the only wholesale pass-through model in Pennsylvania, the EEA-PA makes the most sense for small and medium-size companies that want the lowest possible rates without a long-term commitment,” he says. “They also do not have to go through a middleman, which typically adds on considerable fees and markups.”
Employers’ Energy Alliance of Pennsylvania, Inc.
Through the EEA-PA, these companies have saved an average of 22 percent when compared to the PPL’s utility rate in the center of the state, and similar results are expected in utility territories where rate caps expire in January 2011. Many retail aggregators can only offer savings of 10 percent. The EEA-PA Difference The best way to truly measure the success of the EEA-PA is to hear from the employers already enrolled in the program. In a short span of time, many of these organizations have realized a significant difference in their operations’ energy bills. According to Jerry L. Blanchard, owner of Miller’s Furniture of Mill Hall, “I would like to say how pleased I am with making the switch from PPL Electric to EEA-PA. Since becoming a new member seven months ago, we have saved an average of 33 percent over our previous rates. Keeping in mind the state of the economy and the difficulty in these times to balance a budget, it is important for us as a small business to save money wherever we can.” For G&M Bandsaw, Inc., a manufacturing company with 12 employees in Montgomery, Pennsylvania, the EEA-PA was the right choice for their low-cost electricity supplier. “I have been very pleased with our new energy program,” said Chet James, president and owner. “The EEA-PA has saved us 25.4 percent compared to rates with PPL for the first and second quarter of 2010. I heartily recommend EEA-PA. It’s a ‘no brainer’!” This savings potential is why Bell encourages companies, especially those in the Penelec territory, to begin the EEA-PA enrollment process by mid-October. A typical changeover to the EEA-PA program takes about six to eight weeks for the utility to complete. “If you wait until November or December to enroll in the EEA-PA, you may be missing out on savings when the caps are removed,” he says. “The sooner you enroll, the sooner you can save. Making this kind of investment in your energy savings is good business.” Please visit www.eeapa.com to learn more about the EEA-PA, to get a free energy analysis, to register for an energy briefing or Webinar, or to contact one of the EEA-PA representatives in your area. October 2010 > www.mbausa.org > 37
Events
HR Essential Series — Erie
From left: John Onorato, Association vice president and general counsel, and Melissa Vybiral, Custom Plastic Specialties.
2010 Fall Training Graduates
The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 100 graduates of its professional development and computer training programs. Visit the Photo Gallery on www.mbausa.org for complete photo coverage.
HR Essential Series — Erie
From left: Lee-Ann Czytuck, Steris Corporation; Linda Rihel, Better Baked Foods; Kyle Noyer, Regional Cancer Center; and John Onorato, Association vice president and general counsel.
Lean - Six Sigma Certification — Erie
From left: Andrea Feidler, CMI EPTI; Michelle Marshall, Better Baked Foods; and Association Training instructor Ray Davis. Not pictured: Four graduates from three companies.
HR Essential Series — Erie
From left: Mari Anne Clark, Erie Regional Airport Authority; Jeannie Hickman, Quality Life Services; and John Onorato, Association vice president and general counsel.
Leadership for Team Leaders — Butler
Front row, from left: Mark Klabnik, Derek Hohman, Jenn Anderson, Julie Smith, Brenda Bowser, Chad Graff and Tom Rosol, II-VI, Incorporated. Back row, from left: Wade Greenwald, Todd Tommaney, Fred Bicker, Chris Smith and Brian Kurn, II-VI, Incorporated.
Leadership for Team Leaders — Erie
Front row, from left: Jessica L. Mazariego, The Plastek Group; Jennifer Corey and Betty Wyant, Homerwood Hardwood Flooring; and Jamie Greene, Signal-Tech. Back row, from left: Steven Schueler, Homerwood Hardwood Flooring; and James Borowski, Jeff Babcock and Mike Cieslak, ERS.
38 < www.mbausa.org < October 2010
Supervisory Skills Series — St. Marys
From left: Joe Fox, Contact Technologies; Sean Van Alstine, Metaldyne; Diane Morgan and Angela Surra, St. Marys Insurance Agency, Inc.; and Kimberly Briggs, Office of Human Services.
Supervisory Skills Series — Erie
Front row, from left: Steve Wagner, Denise Chulak, Mariana Skonieczka and Teresa Cook, Presque Isle Downs and Casino; Mary Beth Huegel, Erie Insurance; Tonya Pace, Howard Industries; Stephanie Burkett, Bay Valley Foods; Mindy McAllister, Presque Isle Downs and Casino; Nikki Rutigliano, Alliance Plastics; Brooke Hughes, Presque Isle Downs and Casino; and Kevin Renwick, Seaway Manufacturing. Back row, from left: Terry Smith and Darrin King, McInnes Rolled Rings; Brad White, Erie Bronze & Aluminum; Kenneth Bleil, Presque Isle Downs and Casino; Elvir Saracevic, Bay Valley Foods; Mark Kraus, Presque Isle Downs and Casino; Kari Carpenter, Greenleaf Corporation; Tim Robbins, Erie Bronze & Aluminum; Justin Stidham, Emergycare Inc.; and John Phelps, Erie Forge and Steel.
Supervisory Skills Series — Williamsport
Front row, from left: Jerry Horning, Koppers Inc., and Betty Balzer, Ralph S. Alberts Co. Back row, from left: Wendy Gleckner, Brodart Company; Teresa Mook, Susquehanna Fire; and Daniel Goss, Susquehanna Fire.
Supervisory Skills Series — Warren
Front row, from left: Justin Becklund, Glenda Gerbec and Amy Naser, Whirley Industries Inc.; and Earl Wilcox, Youngsville Borough. Back row, from left: Bob Darts, Chad Hoatling, Jim Ciprich, Mike Driscoll, Terry Turner and Shaun Courtney, Superior Tire & Rubber Corp.
Supervisory Skills Series — Erie Supervisory Skills Series — Meadville
From left: Amy Alexander, Dad’s Pet Care; Mary Anne Bajorek, Turning Point Chemical Dependency; Mildred Boyd, Lawrence County Drug & Alcohol Commission; and Ruth Dobos, Dad’s Pet Care.
Front row, from left: Chris Lueck, Accuride - Erie; Roger Gariepy, Better Baked Foods; Judy Cooklis, Erie Insurance Group; Association Training instructor Lisa DeFilippo; and Jarrod Trojanovich, Associated Clinical Laboratories. Back row, from left: Peter Hirneisen, Erie Water Works; Blaine Fellows, Marquette Savings; Frank Leone, Doug Dougherty and Jamie Persino, Erie Water Works; and DiAndre Thompkins, Accuride - Erie.
Access Application Specialists – Erie
Front row, from left: Jackie Jensen-Withey, Economic Development Corp. of Erie County; Beth M. Vantassell, Erie Veterans Affairs Medical Center; Sheryl Hoetzel, Erie County Department of Public Safety; and Association Computer Training Manager Amy Pontillo. Back row, from left: Grace Bojarski, Judianne Hyde and Matt Rizzo, Erie Insurance Group. Not pictured: Six graduates from four companies.
Excel Application Specialists – Erie
From left: Valinda McCoy, Economic Development Corp. of Erie County; Tina Gonzales, Erie Insurance; Corrie Bednez, Target Pet Treats; and Association Computer Training Manager Amy Pontillo. Not pictured: Thirteen graduates from nine companies.
October 2010 > www.mbausa.org > 39
As your Business Solutions partner, the Erie Federal Credit Union will work for you “behind the scenes” to help you manage your business finances. You’ll work directly with us — local people from the area, who know you and are familiar with your business. Our personalized approach means your business will benefit from our full line of financial services, as well as the opportunity to bring credit union benefits to your employees and customers. At Erie FCU, your business is as important to us as it is to you. To learn more, visit www.eriefcu.org/business-solutions
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People Buzz HILL, BARTH & KING’S ALLEGRETTI APPOINTED TO TASK FORCE Hill, Barth & King LLC (HBK), Certified Public Accountants and Business Consultants’ Christopher M. Allegretti, CPA, managing principal and chief executive officer, has been appointed by Newt Gingrich to the Jobs and Prosperity Task Force Advisory Board. Former Speaker of the House and General Chairman of American Solutions Newt Gingrich announced the appointment of Allegretti to the Advisory Board of his Jobs and Prosperity Task Force, which is comprised of the most successful and accomplished business leaders and entrepreneurs in America. As an Advisory Board Member, Alle-
gretti will be invited to Washington for strategy sessions and events where he will discuss ways of turning American economic problems around with solutions that have been used in successful businesses. NORTHWEST SAVINGS NAMES MANAGER FOR NEW BRANCH Susan Cunningham has been named manager of Northwest Saving Bank’s newly completed branch office at 850 Pittsburgh Avenue in the West Erie Plaza in Erie. As manager, her responsibilities include all aspects of mortgage and consumer lending, the business development of deposit account relationships, administration of bank policies and procedures, and customer and community relations. In addition, she partners with Northwest’s Commercial
EDITORIAL > Contact: Karen Torres
Lending, Business Services, and Investment and Trust Services to develop client relationships. AMERICAN CANCER SOCIETY HONORS SAINT VINCENT CEO The Erie County Unit of the American Cancer Society named Saint Vincent Health System President and CEO, C. Angela Bontempo, MHA/MBA, FACHE, as the honoree of the third annual Erie Golf Premiere held this summer at the Kahkwa Club in Erie. “As a cancer survivor,” said Bontempo, “I realize the importance of cancer programs, and I am pleased to be a part of this American Cancer Society Golf Premiere.” Saint Vincent Health System associates serve on numerous American Cancer Society committees.
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Enjoy a discount and the ease of 24/7 on-line access for all of your health plan needs. Has there ever been an easier business decision? At UPMC Health Plan, we want to make it that simple. That’s why we’ve introduced the region’s most comprehensive all-electronic option. It’s called and it’s an easy-to-use, paperless option that complements any of our Small Business Advantage health plans. With , all enrollment, billing, claims, and payments are conducted online – providing you and your employees with greater convenience. Your employees also enjoy easy access to all their health information, wellness tools, and health support. And, as always, you and your employees have access to our network of more than 80 hospitals and 7,000 physicians, and the award-winning member service you expect from UPMC Health Plan. In other words you get more for less. To learn more about how you can save, go to upmchealthplan.com.
Shouldn’t the people who insure your health understand it? This managed care plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. If you have questions, call Member Services at 1-888-876-2756.