Trust and expertise: wise choices when choosing an energy supplier. Trust and expertise are critical when choosing an energy supplier. We’ve helped hundreds of Manufacturer & Business Association members, businesses of every size and type, save more than $10 million on their electricity costs. And we can help you too. Our energy experts will answer your questions, clarify the complexities and explain the best option (fixed or variable) to ensure maximum savings on your future energy usage. And our free cost-comparison analysis will show you the savings you can expect based upon current usage.
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Contact Chuck Jenkins, Employers’ Energy Alliance, Regional Representative Email: cjenkins@mbausa.org or call 814-833-3200
NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645
BUSINESS M A G A Z I N E Manufacturer & Business Association
VOLUME XXVI, NUMBER 10
OCTOBER 2013
L A U N N A H T 4 C U S T O M E N G I N E E R I N G C O.
A Celebration of Manufacturing Growth and Investment / Page 18
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October 2013
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
How the patient-centered medical home model is helping to reduce preventable hospital readmissions and health-care costs.
Greg Yahn, president of Archi-Texture Finishing LLC and Advanced Finishing USA, in Fairview, Pennsylvania, and a member of the Council of Fellows at Penn State Erie, The Behrend College discusses the introduction of new digital media arts capabilities at Penn State Behrend and the benefits it will provide to our region.
7 / Health Matters
3 / Spotlight
STEPHEN PERKINS, MD
9 / Legal Brief Why terms and conditions of sale are so important to you and your business. JAMES R. WALCZAK
15 / On the Hill
11 / Financial Adviser Health-care reform: What’s been delayed and what hasn’t? JOHN M. BONGIOVANNI, CFP, CLU, CHFC
SPECIAL SECTION > 23 / Manufacturing Showcase See our showcase of companies that are proud to manufacture products in Pennsylvania. sPeciA
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18 / Made in PA: A Celebration of Manufacturing Growth and Investment
EVENTS >
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30 / Training Graduates
ics elec Tron sunbursT ront ParK way bayF 420 east es. 7 iC assembli erie, Pa 1650 61-9120 ics.com eleC tron Phone: 814/4 .sunburstelectronturer oF ComPlex www t manuFaC WebsiTe: iCe ContraC -serv Full s Tion solu TurninG ar street 34 east harm 5 r Pa 1636 uFaC ture warren, uCts man om 23-1134 CnC ProD ionsinc.c Phone: 814/7 .turningsolut , PreCision www CertiFieD WebsiTe: 9001:2008 wneD, iso woman-o sTries And indu levarD uTiliTies bou l K. stria 1 iCation wor 1995 inDu ville, Pa 1585 Custom Fabr reynolDs ment Plus 53-8269 eFurbish Phone: 814/6 .ut-i.com s/rePair/r Parts sale www WebsiTe: in gas meter anD es g.com > 23 sPeCializ
See exclusive photos of the more than 100 graduates of the Association’s professional development and computer training.
DEPARTMENTS > 4 / Business Buzz 28 / HR Connection
October 2013
30
Area manufacturers share how they are making an impact on Pennsylvania and the communities in which they operate through the growth and investment they are making in their operations, technology, training and work-force development.
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more than ly employ my and direct form of sales to the econo n in tax revenue in the tax revenue $71 billion millio nal income an estimated ibutes nearly $790 million in perso is proud to showcase rers contribute sector contr as well as $900 magazine ia’s manufactu the manufacturing our fourth franchise tax jobs. the business pennsylvan one state in l stock and e. in addition, ional in the keyst 564,000 peopl net income tax, and capita than 1.6 million addit right here made cts more the produ tax, corporate supporting facturing and while also to the state, e of pennsylvania manu case. the importanc facturer show manu al annu
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State Representative Eli Evankovich, R-54th District, talks about the progress being made by the newly formed Legislative Manufacturing Caucus, a bipartisan group that aims to grow manufacturing in the Commonwealth.
4
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> www.mbab
32 / Legal Q&A 35 / People Buzz
Read on the Go! For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! October 2013 > www.mbabizmag.com > 1
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SPOTLIGHT > Greg Yahn is the president of Archi-Texture Finishing LLC, which specializes in custom decoration of powder coatings, and Advanced Finishing USA, a full-service powder coating and finishing shop in Fairview, Pennsylvania. He is also a member of the Council of Fellows at Penn State Erie, The Behrend College. Yahn recently met with the Business Magazine to discuss the introduction of new digital media arts capabilities at Penn State Behrend and the benefits it will provide to our region.
Please explain what this new program is and what it entails. First, this is not a single program but rather a set of capabilities being developed across the college. Students at Penn State Behrend now have unprecedented access to animation and modeling software from Autodesk, a leading global developer of 3D design, engineering and entertainment software. In addition to providing CAD and engineering analysis tools, the software gift will allow the college to develop new interdisciplinary programs that fuse the humanities, the arts, and advanced digital technologies. The college now offers a certificate in game development with tracks in technical programming and digital arts and design and also envisions integrating humanities, communication, and arts courses into new academic offerings in digital arts and media. How did it come about? Executives at Autodesk, headquartered in San Raphael, California, were intrigued by the success of some of their younger designers who shared one thing in common — their education at Penn State Behrend. This led executives from Autodesk to visit Behrend where they found the college working to foster the interdisciplinary creativity, innovation, and effort needed for the applications that Autodesk software is made for. Why is there such a need for this capability in our area? I see the Autodesk technology much as I see my own business. My company applies finishes, and almost every type of product in every market requires some kind of finish. I view this technology in a similar light, with a vast range of end uses. Imagine a re-creation of the battle of Gettysburg playing at the Smithsonian. Think of special effects for movies and animations for video games, along with the soundtracks that support them. Imagine designing everything from highways to artificial hearts, and simulating pharmaceutical delivery systems for cancer drugs — even simulating the events that might have occurred before and after the Big Bang — all done right here in Erie, PA! All of these are applications for this technology, and Behrend students now have a front row seat in working with it. World-class companies and organizations will have the opportunity to take part in this new technological revival, making Erie a world center for advanced technology once again. What are the educational and economic benefits? From an educational standpoint, students at Penn State Behrend will work firsthand with state-of-the-art software, learning the basics of a variety of digital art media — not only drawing and sound programs but technologies incorporating advanced interactive design, complex simulation and multi-level problem-solving. From the economic side, Erie companies (and other multinational companies) will have the opportunity to work with faculty and student teams in research projects that advance their product lines and intellectual property (that they can retain). Erie will be able to attract world-class companies looking for future employees to help them stay ahead of the digital curve. What is the outlook for digital arts jobs in the short and long term? Really, the sky is the limit. Applications for this software transcend entertainment, the arts, science, engineering, business and health care, to name a few; graduates will have a broad selection of career choices, whether they major in the humanities, the sciences, business or engineering fields. How can you learn more about this program? By visiting Penn State Behrend’s website at behrend.psu.edu and typing in Autodesk in the search bar.
Contact: Karen Torres
VOL. X X VI, NO. 10 OCTOBER 2013 Manufacturer & Business Association Board of Governors
Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Mark Hanaway Donald Hester Timothy Hunter Paul Kenny J. Gordon Naughton Dennis Prischak Sue Sutto
Editor in Chief
Ralph Pontillo rpontillo@mbausa.org
Executive Editor
John Krahe jkrahe@mbausa.org
Managing Editor & Senior Writer
Karen Torres ktorres@mbausa.org
Contributing Writers
John M. Bongiovanni Stephen Perkins James R. Walczak
Photography
Casey Naylon Karen Torres
Advertising Sales
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org
Design, Production Printing Concepts Inc. & Printing printcon@erie.net
ON THE COVER: Learn about the growth and investment area manufacturers are making in their operations, technology, training and work-force development. For full story, see page 18. 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.mbabizmag.com © Copyright 2013 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 2013 > www.mbabizmag.com > 3
Business Buzz BOYS & GIRLS CLUB RECEIVES $50,000 FROM ROAR ON THE SHORE® Officials from the Manufacturer & Business Association (MBA) and Roar on the Shore® formally presented a $50,000 donation to the Boys & Girls Club of Erie, the proceeds from this year’s charitable motorcycle rally, during a press conference on August 28 at the Boys & Girls Club. The Boys & Girls Club is “an outstanding organization that provides critical support to young people in our community who face some very difficult challenges, as well as access to special programs that help build skill and character,” said 2013 Roar on the Shore Board Chairman Greg Rubino. Added John Cline, chairman of the Association’s Board of Governors and president of Sunburst Electronics and Bliley Technologies, “It is our sincere hope that our contribution will help the Boys & Girls Club of Erie continue their invaluable work in molding and guiding the youth of our community.”
MBA Board of Governors Chairman John Cline (back left), Roar on the Shore Board Chairman Greg Rubino, MBA Board and Roar Board Member Bill Hilbert Jr. and Erie Mayor Joe Sinnott present this year’s rally donation to Boys & Girls Club Executive Director Al Messina (at right), along with children and staff at the center.
Presented by the MBA, the seventh annual Roar® rally – held July 18, 19 & 20 – attracted more than 100,000 visitors to the shores of Lake Erie for three full days of bikes, musical acts and more. To date, the MBA and Roar boards have donated more than $635,000 to charitable organizations because of the rally. Next year’s rally is scheduled for July 17, 18 & 19. For more information, visit www.roarontheshore.com.
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DEPARTMENTS > Contact: Karen Torres
TECH MOLDED PLASTICS GIVES MBA STUDENTS EXPOSURE TO PRECISION MANUFACTURING INDUSTRY Tech Molded Plastics, Inc., a family owned injection molded plastics company in Meadville, recently hosted a team of MBA students from Penn State’s Smeal College of Business in order to gain fresh perspectives and analysis from a student team with a wide range of talents. According to Tech, the resulting relationship provided real-world business experience through the Smeal MBA Program’s Applied Professional Experience Program (APEX). Through the APEX program, teams of MBA students and their clients collaborate over 14 weeks to tackle business challenges provided by client firms. Students from the APEX program worked closely with the staff at Tech from December of 2012 through April 2013 to prepare a consulting report,
which served as a capstone project for their MBA experience. The project produced several concrete outcomes, including an analysis of potential market opportunities related to Tech’s precision manufacturing services. According to the company, Tech’s partnership with the Penn State Smeal MBA Program marked a continuing commitment to partner with educational institutions to provide exposure to precision manufacturing careers. For more information, visit www.ttmp.com. PROCHEMTECH ANNOUNCES COOLING TOWER PATENT ProChemTech International, Inc., a world leader in water treatment technologies, recently announced that its Chief Chemist, Timothy Keister, a Certified Water Technologist and Fellow of the American Institute of Chemists, was awarded U.S. patent, #8,496,847, “Method
The key to our completed expansion?
and Composition for Operation of Evaporative Cooling Towers at Increased Cycles of Concentration.” According to the company, this patent discloses the method and composition for operation of an evaporative cooling tower using hard, alkaline makeup water at increased cycles of concentration (COC). The COC obtainable by this method and composition allows cooling towers to be operated two COC higher than can be obtained by competitive methods. Operation at a higher COC cuts cooling tower blowdown, reducing both fresh water use and sewerage discharge, decreasing overall operating costs and conserving natural resources. ProChemTech operates manufact- uring facilities in both Pennsylvania and Arizona, with its headquarters and main laboratory located in Brockway, Pennsylvania. For more information, visit www.prochemtech.com.
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Health Matters
EDITORIAL > By Stephen Perkins, MD
Patient-Centered Medical Home Model Helps Reduce Readmissions, Health-Care Costs One of the first steps in containing health-care costs is curbing costs considered preventable. At the top of this list are preventable hospital readmissions. A method that has been shown to be effective in reducing these readmissions is the patientcentered medical home (PCMH). The effectiveness of PCMH is largely due to the care and attention that patients are provided. Reasons Why the PCMH Model Can be Effective PCMH stresses that a personal physician and a personal physician’s staff should proactively and holistically coordinate their patients’ care, and it also encourages patients to become more engaged in their own care. The result is patients are more prepared before, during, and after their hospitalization to understand their condition. This leads to less confusion about their care plan and a better understanding of the things they have to do once they are sent home from the hospital. When a PCMH includes a care manager who is based in the practice, this also helps to reduce readmissions. Care managers enable physicians to deliver continuous, accessible, high-quality patient-oriented population care. They coordinate health services with other providers and work with patients before and after hospital stays to make sure the patient understands his or her condition and care regimen. Practice-based care managers (PBCM) make direct contact with patients, identify barriers to care and educate patients.
PBCMs change the work flow in the medical community. Historically, the medical community has approached health care in a reactive way — they react to a patient presenting for care rather than anticipating care needs. Likewise, patients react by seeking episodic care. In order to control costs and improve quality, there has to be some way to manage individual members rather than focusing on managing the population through physician practices. Benefits to Patients in a Medical Home • Patients receive more coordinated services in a medical home system, which results in less confusion about their care plan. • Better compliance with the recommended treatment. • Shared decision making with the physician and care team. • Physician and patient are on a much more parallel track, which results in greater patient satisfaction. Can Practice-Based Care Managers Drive Down Preventable Readmissions? PBCMs — who are often nurses — can coordinate health services with other providers, manage a patient’s health conditions, connect the patient with community resources, assist patients with managing prescriptions and help members lower or maintain weight, decrease stress, quit smoking, and identify safety and fall risks in the home. PBCMs help serve as the bridge between members and their physicians — before, during and
after office visits — as they function as part of the physician’s team, coordinating and assisting in the development of a care plan for members. PBCMs support their physician practices and meet with members face to face to address knowledge gaps and provide selfmanagement tools. Because the PBCM can serve as a liaison between the health plan and the practice, the care manager can provide actionable information on issues such as unplanned care events to the practice on a day-today basis. To learn more about UPMC Health Plan’s patient-centered medical home, visit http://www. upmchealthplan.com/ar_2012/ network.html.
Stephen Perkins, MD, is the vice president of Medical Affairs for UPMC Health Plan, which is part of the UPMC Insurance Services Division. The integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products, also include UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), UPMC for Life (Medicare), UPMC for Kids, Askesis Development Group, EBenefits Solutions, and Community Care Behavioral Health.
October 2013 > www.mbabizmag.com > 7
Legal Brief
EDITORIAL > By James R. Walczak
Why It’s Your Business to Know the Uniform Commercial Code Every manufacturer, whether big or small, is a seller of goods. Therefore, it is essential that every manufacturer have a basic, working knowledge of the law governing the sale of goods. In the United States, the principal statute governing the sale of goods is Article 2 of the Uniform Commercial Code (the “UCC”). As its name implies, the UCC has been adopted in virtually identical form throughout the United States. Under the UCC, it is possible to have a valid contract for the sale of goods simply by two parties agreeing upon the identity and the quantity of the goods to be sold and purchased. If the parties fail to specify other terms, such as delivery dates, method of transport, or even price, the UCC will imply “reasonable” terms and other statutorily specified terms so as to make the contract fully enforceable. Thus, a quotation, and a purchase order issued in response to that quotation, will constitute an enforceable contract under the UCC, even if they contain only the barest of information. Why, Then, are Terms and Conditions of Sale so Important? The answer is that UCC terms are extremely favorable to the buyer of goods, and extremely disadvantageous to the seller of goods. Absent express agreement of the parties to the contrary, (that is, terms and conditions of sale) the following rules (among others) would apply:
3. There are no limitations on the remedies of a buyer in the event that there is a breach of warranty. In other words, in addition to demanding repair or replacement of the defective good, the buyer may claim monetary damages. 4. There are no limitations on the amount of damages that can be claimed. 5. There are no limitations on the types of damages that can be claimed. Thus, a seller can be liable for such things as the lost profits of the buyer. 6. There is no right to recovery of attorneys’ fees, costs of collection and (in some states) even interest, if the buyer fails to make timely payment. Looking at these items, it becomes readily apparent that, in the absence of terms and conditions protecting the seller, the risk allocation of a transaction involving a sale of goods is heavily skewed in favor of the buyer. This can be illustrated by a simple example. A seller delivers a $100 part to a buyer for installation in an assembly line. If the part breaks and causes the assembly line to go down for a week, the seller could be liable for all of the following damages: 1. The cost of a replacement part. 2. The cost of removing the defective part and installing the replacement part. 3. The lost profits of the buyer due to being out of business a week.
1. Warranties of merchantability and fitness for a particular purpose are implied.
4. Incidental costs incurred by the buyer in dealing with the situation caused by the defective part.
2. There are no limitations on warranties. In other words, even the seller’s advertising materials with respect to the goods may be construed to be a warranty.
Obviously, damages of these types could amount to many thousands of dollars.
plus (in some states) interest on the $100. Typically, the seller would not even be able to recover its attorneys’ fees. Protect Yourself It is extremely important, from the seller’s perspective, to have a good set of terms and conditions which, among other things: 1) limits warranties; 2) limits remedies for a breach of warranty; 3) limits the types of damages for which the seller can be liable; 4) limits the overall amount of damages for which the seller can be liable; and, 5) adequately protects the seller in the event of non-payment by the buyer. A related, but equally important subject, is making certain that the seller’s terms and conditions become a part of the contract. This is especially important in the age of e-commerce. More on that subject in a later article. For more information, contact James R. Walczak at MacDonald, Illig, Jones & Britton, LLP at 814/870-7763 or jwalczak@mijb.com. James R. Walczak is a partner at the law firm MacDonald, Illig, Jones & Britton, LLP and concentrates his practice in the areas of corporate governance, business transactions and finance, and creditors’ rights. He also is general counsel for a number of business, nonprofit and governmental organizations, providing legal advice on corporate, transactional and tax matters.
Conversely, if the buyer fails to pay the purchase price for the $100 part, the seller’s only remedy is to sue for the $100
October 2013 > www.mbabizmag.com > 9
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10 < www.mbabizmag.com < October 2013
Every day E.E. Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”. It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you. It’s the Austin Difference.
EDITORIAL > By John M. Bongiovanni, CFP, CLU, ChFC
Financial Adviser
Health-Care Reform: What’s Been Delayed and What Hasn’t? The Patient Protection and Affordable Care Act (PPACA) was passed in March 2010 — three and a half years ago. Since that time, in addition to the 2,500-page law, there have been 15,000 to 20,000 pages of regulations issued. Parts of the Act have been rescinded including the Class Act that was to provide LongTerm Care Insurance, and expanded 1099 reporting for businesses. Parts of the law already have been delayed, including a multiple carrier menu in the small business health exchange; however, the most surprising delays this year were announced around the Fourth of July weekend. PPACA amended the Internal Revenue Code to require large employers (those with more than 50 employees) to report information about their health plan coverage to the Internal Revenue Service (IRS) so the government could enforce certain business and individual mandates. Under the PPACA, those large employers that do not offer their full-time employees health coverage that is both affordable and provides minimum value, may be subject to penalties. PPACA’s employer mandate is often referred to as the employer’s “shared responsibility” provision or the “pay or play rules.” The reporting and the pay or play rules were set to take effect in 2014; however, they have now been postponed until 2015. This was done, according to the IRS, to provide additional time for input from employers as well as give all affected parties more time to make adjustments to their benefit plans and reporting systems. While this represents meaningful delay for larger employers, those portions
of PPACA impacting individuals, including the requirement that they have health insurance or pay a penalty and the eligibility for premium tax credits through an Exchange, will continue to be in place this coming January. Interestingly, because employer reporting has been delayed for a year, the verification for eligibility for subsidies on the individual Exchange has been essentially eliminated and, other than some “sampling,” the Exchanges will be relying on the “honor system” to award individuals subsidized premiums. Many of PPACA’s provisions already have been enacted and are part of health plans maintained by most employers. These include the elimination of lifetime limits, coverage for preventative care services, limitation on flexible spending account deferrals, the required use of Summary of Benefits and Coverage to supplement summary plan descriptions, W-2 reporting, medical loss and ratio rules and dependent coverage to age 26. These are all in place today. What to Expect in the New Year Beginning in January 2014, we expect to see the Exchanges up and running, subsidies available to low and more modest income individuals for Exchange coverage, coupled with the individual mandate and significant rating restrictions, which prohibit health insurers from using claims experience or health histories to set small group premium rates. I think most, if not all, of the large companies we work with are relieved at the one year delay in the PPACA reporting and related tax penalty provisions and see 2014 as an opportunity to refine health benefit
offerings, employee contribution schedules, and eligibility provisions in order to comply with the law while providing employees with a valuable benefit at an affordable cost to the company. Needless to say, it is going to be a very interesting fourth quarter. No one knows what changes are going to occur between now and the first of the year. For most employers, health insurance continues to be one of the largest and fastest-growing line items in their budget. The rate of the change in the marketplace continues to accelerate and will take everincreasing skill levels for employers and their brokers to manage these challenges effectively. For more information, please contact John M. Bongiovanni, CFP, CLU, ChFC, at Lillis, McKibben, Bongiovanni & Co. at 814/452-4085 Ext. 229 or john. bongiovanni@lmbcoerie.com.
John Bongiovanni, CFP, CLU, ChFC, is a partner at Lillis, McKibben, Bongiovanni & Co., an Erie-based group benefits firm. He is a member of the Society of Financial Service Professionals and National Association of Insurance and Financial Advisors-PA.
October 2013 > www.mbabizmag.com > 11
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OntheHill
DEPARTMENTS > Contact: Lori Joint
Bipartisan Caucus Seeks to Promote Manufacturing In an effort to provide support to Pennsylvania manufacturers, state Representatives Eli Evankovich (R-54th District, Westmoreland/Armstrong) and John Galloway (D-140th District, Bucks) have formed the Legislative Manufacturing Caucus in the House of Representatives. The two legislators serve as co-chairmen of the bipartisan group, which currently has 95 members. The Association recently sat down with Representative Evankovich, who previously served as a financial analyst for U.S. Steel, to learn more about the goals of the caucus and what it has achieved so far.
What spurred you to form this bipartisan caucus? I come from a manufacturing background (U.S. Steel) and while there I had the opportunity to learn a lot about the far-reaching aspects of large manufacturing as well as small manufacturing through the companies we did business with. When I went to Harrisburg, I realized that everyone brings something entirely different to the table, and my expertise and knowledge were manufacturing. Manufacturing is such an important aspect of our state economy. This caucus gives lawmakers a vehicle to learn more about manufacturing. It allows manufacturers to give more insight to legislators about their business and talk about their challenges. The reality is that small policy (as well as big policy) matters. What do you hope to accomplish? The hope is to grow manufacturing in Pennsylvania — to encourage existing companies to stay and encourage new companies to come here. Ideally, the goal would be to develop a set of policy initiatives that are important to the manufacturing community and get the caucus to advocate for them. Please provide some concrete examples of the progress you have made. More than 100 members of the House have joined the caucus — making it one of the largest (if not the largest) bipartisan caucuses. The tour-based structure has been very successful; it is one thing to hear about something, but another to see it, tour it, sit down for a discussion with the owners. A recent tour at a helicopter manufacturer was an eye-opener for many as this company faces challenges by being in Pennsylvania that could probably be eliminated in another state. We need to work with them to help them expand and continue to grow in Pennsylvania. What has been the response from the manufacturing community? Within the first month, we received more than 30 tour requests. There has been a tremendous interest from
manufacturing companies of all sizes as well from associations (such as the MBA). They like being able to discuss the issues and have the lawmakers learn more about their company firsthand through the tour and discussion. What did you learn from your onsite visits to these companies? Even though small and large manufacturers sometimes face different challenges, there are definitely some common issues that came up everywhere we went. Work-force development and finding workers that are adequately prepared with the most basic of skills has been a problem for companies of all sizes. In addition, taxes are consistently brought up as well as workers’ compensation and unemployment compensation. If you are not exposed to something, you don’t know it’s out there. I think public/private partnerships with education and business are going to be key to the future work force. People need to understand the jobs/wages/ benefits that could be available to them and also to understand the skills that are necessary (including basic math and science) to get there. What is the group’s direction for the future? The long-term goal is to have some type of policy impact through advocacy in the caucus. We would like to see positive movement through legislation that will benefit the manufacturing community. It needs to be very task/ objective oriented. How can the manufacturing community better work together with the caucus to effect change? I’ve been there. My wife and I own and operate a daycare business and I completely understand that it is not the job of the business owner to be involved with elected officials. However, it is becoming increasingly important for them to communicate with their legislators on a regular base about the issues they are facing. If you would like to schedule a tour or learn more, contact my office, your local representative’s office, or groups like the MBA. October 2013 > www.mbabizmag.com > 15
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Rog’s Inc.
Company PROFILE Rog’s Inc. 327 E. 18th Street Erie, PA 16503 Phone: 814/453-6781 Website: www.rogsinc.com
Where Size Matters
In the rigging and machinery moving business, size matters.
And, since 1957, Rog’s Inc. has been steadily growing and developing into the local tri-state area’s largest and most fully equipped rigging company. What late founder Roger “Rog” Hedderick started some 56 years ago has since grown and flourished into a major operation under the leadership of his son, Gaven Hedderick, now president and CEO. Gaven’s brother Scott serves as general manager, and his brother Vern serves as maintenance and warehouse manager. Thanks to their father’s tutelage, these men were operating forklifts and moving heavy machinery long before they were old enough to drive. Even Gaven’s brother-in-law, Tony Giannelli, Rog’s senior foreman, has been with the company for 20 years. Together, these professionals have 130 years of combined rigging experience and, coupled with Rog’s excellent staff of OSHA-certified riggers and crane operators, offer customers the very best and most qualified riggers in the tri-state area. Unparalleled Equipment With 17 conventional forklifts of all sizes, plus three innovative forklifts, including a small-profile 25/35 VersaLift, that is only 5 feet wide, but can lift 35,000 pounds; a slightly larger 40/60 Versa-Lift, that is only 6 feet wide, but can lift 60,000 pounds; and its workhorse, the Rigger Special, that can lift a hefty 80,000 pounds, Rog’s has a forklift for nearly every need.
When reach or weight is an issue that a forklift cannot handle, the company has three cranes with a maximum capacity of 100 tons, and a maximum reach of 221.7 feet. Rog’s also has a fleet of late model tractors and an array of tri-axle tilt-bed trailers, flatbeds, tri-axle lowboys and step-decks, all with air-ride-suspension, to assure a smooth ride for today’s delicate machinery. Hedderick Properties, the warehousing division, features 12 onsite warehouses, with 162,000 square feet of under-roof storage space, which includes its 24,000-square-foot Machinery Distribution Center. There, Rog’s receives and unloads customers’ machinery, saving them the aggravation of coordinating trucker with rigger. All machinery is loaded and unloaded inside Rog’s building, protected from the elements, and then delivered at the customer’s convenience. If customers should need more time to prepare a site, Rog’s has the room to keep the machine until they’re ready. Exercising Care, Safety and Service Rog’s slogan is “We Lift Things Up & We Place Them Down.” In other words, the company exercises the utmost care when handling every piece of equipment entrusted to its care because safety and customer satisfaction are Rog’s two highest priorities. Next time you need a crane or a forklift, call Rog’s Inc. and find out why it is the area’s premier rigging and crane service.
Rog’s Inc., headquartered in Erie, Pennsylvania, is the area’s largest and most fully equipped rigging company. The operation has a forklift for nearly every need and features 12 onsite warehouses, with 162,000 square feet of under-roof storage space. October 2013 > www.mbabizmag.com > 17
MADE IN PA: A Celebration of Manufacturing Growth and Investment LORD Corporation is more than halfway through its $100-million facility project on Robison Road in Summit Township.
Take a ride along Robison Road in Summit Township and you’ll quickly get a firsthand look at the growth and investments being made in Pennsylvania manufacturing. Along this rural road, just minutes from Interstate 90 and the hub of restaurants and shops along Peach Street, one of Erie’s main arteries, construction crews are more than halfway through the relocation and renovation of LORD Corporation’s new $100-million facility project — the largest facility investment in the company’s history. The project, which has been three years in the making, will soon enable the privately held manufacturer of adhesives, coatings, and motion control technology, to consolidate its Erie operations at its 12th Street and Grandview facilities. By the time it is completed in 2014, 800 full-time employees will occupy about half of the 1.1 million-square-foot building with the potential to co-locate some of its suppliers there in the near future. The company is already on track to meet its commitment to create at least 74 new full-time jobs over a three-year period. In fact, LORD facilities in Erie and Crawford counties account for roughly 5 percent of regional product through direct and indirect economic impact. In addition, more than 900 LORD employees live in Erie County, with a combined annual payroll of more than $50 million. “When we were looking to expand, we made it a priority to remain in this community,” said Will Austin, director of Government Affairs & Communications. “As we progress towards completion of our new Manufact-
18 < www.mbabizmag.com < October 2013
uring and Innovation Center, this community will continue to be an integral component to our success.” LORD, however, is just one of many manufacturers investing and positively impacting the area and Pennsylvania manufacturing. A few miles down the road, Eriez, another one of the region’s most prominent manufacturers, has made considerable investments in its operations and its hometown. Last summer, the company, known around the world for its advanced technology in magnetic, vibratory and inspection system applications, celebrated the grand opening of its new 114,000-square-foot facility on Wager Road in Fairview Township. The Wager Road facility, located approximately 15 miles from its Asbury Road World Headquarters, was purchased to house the Eriez’ 5-Star Service Center and several manufacturing lines, including Metal Recovery Systems, Column Flotation Cells, and Hydroflow® Fluid Filtration and Recycling Equipment. Some of the work previously had been handled by an Ohio-based company, which Eriez acquired a few years ago, while some of it had to be built at subcontracted locations because the equipment was too big for its facility on Asbury Road facility to handle. Mike Mankosa, vice president of Operations for Eriez, says the new facility has “been a godsend because some of the bigger orders that we’ve had to put through we would have struggled to do anywhere else. It’s worked out quite well for us in terms of just having space available for both people and hardware.”
The addition of the new facility came at a time of considerable growth for Eriez locally and around the globe. The company’s operations in Canada, China and India moved from existing facilities to larger buildings to meet growing order demand overseas. The new Wager Road location has expanded Eriez’ capacity as well. “We reflect a lot of what is going on in the mining community and the last couple of years, right up until recently, has been really busy,” says Mankosa. “Those products tend to be larger and require more space to build and that helps us quite a bit.” The new facility staffs about 85 of Eriez’ 375 total staff in Erie and 1,000 worldwide. “It certainly helps when we’re maintaining jobs in the Erie community and not going somewhere else to build equipment. As we go out now and look to acquire different companies or to expand our company, we know we have manufacturing facilities here available to undertake that load,” Mankosa adds. “You can’t go out and expand your capacity if you don’t have any place to build it. Again, we bought a small company in Ohio two or three years ago and we were able to fold that work into this building, so that helps quite a bit with our future plans.”
Eriez’ new Wager Road facility in Fairview Township houses Eriez’ 5-Star Service Center and several manufacturing lines.
Competitiveness
The ability to expand and evolve is key to the industry’s future success locally and around the globe. In the United States, for example, a natural gas boom is helping make U.S. energy costs some of the lowest in the world. And, experts say, the added benefits of higher quality manufactured goods and state-of-the-art innovation capabilities suggests that the U.S. manufacturing resurgence combined with boosting U.S. exports could create between 2.5 million and 5 million jobs by the end of the decade. In fact, a recent industry report shows that the pace of growth in the manufacturing sector had accelerated in July to the highest level in two years as new orders surged. The Institute for Supply Management indicates that national factory activity climbed to 55.4 from 50.9 this past June — the highest since June 2011 — topping expectations. New orders also racked up their best level in more than two years, jumping to 58.3 from 51.9. Employment gained to 54.4 from 48.7. A reading above 50 indicates expansion in the sector. Employers say product design, machine design, and increases in productivity are all reasons for manufacturers’ improved
American Turned Products, represented by COO Harry Eighmy, CEO Scott Eighmy and President Gerald B. Eighmy, unveiled its new Buffoli Transfer Machine at its Fairview headquarters.
competitiveness — as illustrated by investments made by companies throughout Pennsylvania. One such example is the investments made by American Turned Products (ATP), which employs 115 people at its operations in Erie and Fairview. Owned and operated by the Eighmy family, the contract-machining specialist produces high-volume contract precision machining and assembly for several industries with the majority of the volume representing the automotive market. Just last February, ATP took its commitment to investing in the future to the next level, unveiling its latest technology in precision machining — a $1.3-million Buffoli Transfer Machine at the company’s Fairview headquarters. The Buffoli Transfer Machine is a trunnion-style machine, taking non-rotating steel bars and drills, mills, threads, and turns with CNC accuracy, reliability and speed, thus giving ATP a competitive advantage.
“The investment benefited ATP by opening our business to compete in markets where we thought we couldn’t,” explains Drew Hoffman, ATP’s vice president of Client Relations. “This machine gives us the efficiencies required to produce high volume, tight-toleranced parts at lower costs.” Through investments in technology and training, experts say, manufacturing will continue to change in ways no one could have imagined just a decade ago. At Tech Molded Plastics, Inc. in Meadville, for example, it was a little over two years ago that the family owned ISO 9001:2008 certified injection molded plastics company acquired an adjoining facility to meet strategic planning goals. Since then, Tech has made major investments in facility upgrades, plasticizing technology, computerized monitoring of plastics processes, and advanced RJG training certification in plastics processing. >
A Strong Foundation Manufacturing makes our economy strong thanks to great manufacturers in northwest Pennsylvania, including, but not limited to:
C U S T O M E N G I N E E R I N G C O.
October 2013 > www.mbabizmag.com > 19
Tech Molded Plastics in Meadville — owned and operated by the Hanaway family, including Scott, Mark, their mother Eva, and brother Doug — has made major investments in facility upgrades, technology, plastics processes, and training.
information — coupled with support of CareerLink to have positive outcomes in the areas of hiring and job retention in 2012 and 2013. “The team at CareerLink was instrumental in providing guidance and insight to utilize the best practices,” he says. “This became an effective process change in this area which has led to numerous successes for our team.”
According to Vice President Mark Hanaway, “Tech has implemented a personnel development structure that enables our people to advance their skills, knowledge, and position in the organization through progressive stages of training and application of talent. The programs that we have developed are certificate based and designed to enhance the growth potential of motivated individuals in the process of building their skills.” In terms of capability, Tech also has invested in in-mold pressure sensing technology and process monitoring capabilities that add significant value to the molding process for high precision products made with intricate mold tooling. “The value in implementation of pressure sensing technology is on the leading edge of precision molding capabilities,” states Hanaway. “Tech’s core strength is design, build, and full production of molds utilizing engineering grade resins that are the most complex in the industry. ” Employers say the technology and training investments being made now by manufacturers, such as Tech, are vital to the future of the region as a whole. “Technology was introduced to today’s work force in the crib. We are seeing the culture of future leaders shaped by investments in knowledge-based systems and immediacy of information access at birth,” says Hanaway. “A lack of technology will be as much of a liability for recruitment as it will be for advancing efficiencies in manufacturing. Investment in technological systems,
20 < www.mbabizmag.com < October 2013
automation, and data management is what will make an organization sexy. Training is what will make it smart.”
Economic Driver
Manufacturing is the foundation on which Pennsylvania’s economy is built and the driving force that provides family sustaining wages for Pennsylvanians across the Commonwealth. According to the U.S. Bureau of Labor and Statistics, manufacturing in Pennsylvania contributes an estimated $71 billion to the economy and directly employs more than 564,000 people. In addition, the Department of Revenue shows that the manufacturing sector contributes nearly $790 million in tax revenue in the form of sales tax, corporate net income tax, and capital stock and franchise tax as well as $900 million in personal income tax revenue to the state, while also supporting more than 1.6 million additional jobs.
Indeed, employers say the importance of manufacturing and manufacturing jobs to the economic vitality of the region can’t be overstated. “I believe any job creation is instrumental today,” notes Rutkowski. “To do that, we need a vibrant economy, customers purchasing goods and services coupled with a skilled and adaptable work force to meet the everchanging, extremely competitive marketplace demands. I feel that we all need to make sure the person staring back at us in the mirror is giving it its best and understands that the status quo is moving backwards — we need to be constantly learning and improving.” However, true manufacturing occupations, Rutkowski notes, provide more value and therefore receive higher wages. “That being said they are of greater value long term for the company, employee and country,” he adds. “It is truly a three-legged stool that is strong when all are well prepared and of the mindset, as well as skill sets, that we are the best — then we can truly compete and win.”
But finding qualified and skilled workers to fill manufacturing positions presents a critical shortage — with local companies looking for solutions any way they can. This past spring, Industrial Sales & Mfg., Inc. (ISM), a manufacturer and supplier of machined, fabricated and assembled components, based in Greater Erie, was presented with the Governor’s Achievement Awards for outstanding hiring and work-force development success. ISM Vice President Jim Rutkowski Jr., who was presented with the Western Pennsylvania award, said ISM was chosen for the award because of its successful incorporation of O*NET — an online database of occupational
Work-force development has been a critical component to the success of local manufacturing operations, including Erie-based Industrial Sales & Mfg., Inc.
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SPECIAL SECTION
MADE IN PA
M A N U FAC T U R E R S H O W C A S E Pennsylvania’s manufacturers contribute an estimated $71 billion to the economy and directly employ more than 564,000 people. In addition, the manufacturing sector contributes nearly $790 million in tax revenue in the form of sales tax, corporate net income tax, and capital stock and franchise tax as well as $900 million in personal income tax revenue to the state, while also supporting more than 1.6 million additional jobs. The Business Magazine is proud to showcase the importance of Pennsylvania manufacturing and the products made right here in the Keystone State in our fourth annual Manufacturer Showcase.
AMERICAN TURNED PRODUCTS 7626 KLIER DRIVE FAIRVIEW, PA 16415 PHONE: 814/824-7600 WEBSITE: WWW.ATPTEAM.COM CONTRACT PRECISION MANUFACTURER THAT BELIEVES COMPLEX MACHINING DOESN’T HAVE TO BE COMPLICATED. ATP “TURNS” CHALLENGES INTO SOLUTIONS. BETTER BAKED FOODS 56 SMEDLEY STREET NORTH EAST, PA 16428 PHONE: 814/725-8778 WEBSITE: WWW.BETTERBAKED.COM MANUFACTURES HIGH-QUALITY FROZEN FOOD PRODUCTS FOR THE LARGEST FOOD BRANDS IN THE WORLD. BROOKVILLE GLOVE 98 SERVICE CENTER ROAD SUITE B BROOKVILLE, PA 15825 PHONE: 814/849-7324 WEBSITE: WWW.BROOKVILLEGLOVE.COM MANUFACTURER OF COTTON WORK GLOVES. DISTRIBUTOR FOR MAJESTIC & MCR. LORD CORPORATION 1635 WEST 12TH STREET ERIE, PA 16505-5120 PHONE: 1-877-ASK-LORD (275-5673) WEBSITE: WWW.LORD.COM TRANSFORMS INNOVATIVE IDEAS INTO LONG-TERM VALUE FOR ITS CUSTOMERS. PROCHEMTECH INTERNATIONAL, INC. 51 PROCHEMTECH DRIVE BROCKWAY, PA 15824 PHONE: 814/265-0959 WEBSITE: WWW.PROCHEMTECH.COM INNOVATIVE GREEN TECHNOLOGY FOR BOILER AND COOLING WATER TREATMENT. SUNBURST ELECTRONICS 420 EAST BAYFRONT PARKWAY ERIE, PA 16507 PHONE: 814/461-9120 WEBSITE: WWW.SUNBURSTELECTRONICS.COM FULL-SERVICE CONTRACT MANUFACTURER OF COMPLEX ELECTRONIC ASSEMBLIES. TURNING SOLUTIONS 34 EAST HARMAR STREET WARREN, PA 16365 PHONE: 814/723-1134 WEBSITE: WWW.TURNINGSOLUTIONSINC.COM WOMAN-OWNED, ISO 9001:2008 CERTIFIED, PRECISION CNC PRODUCTS MANUFACTURER. UTILITIES AND INDUSTRIES 1995 INDUSTRIAL BOULEVARD REYNOLDSVILLE, PA 15851 PHONE: 814/653-8269 WEBSITE: WWW.UT-I.COM SPECIALIZES IN GAS METER AND PARTS SALES/REPAIR/REFURBISHMENT PLUS CUSTOM FABRICATION WORK.
October 2013 > www.mbabizmag.com > 23
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The Plastek Group
Company PROFILE
The Plastek Group 2425 W. 23rd Street Erie, PA 16506 Phone: 814/878-4400
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 & Beverage, 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.
Web site www.plastekgroup.com
With state-of-the-art manufacturing operations in Erie, Pennsylvania; Hamlet, North Carolina; Mansfield, UK; and Indaiatuba, Brazil, Plastek is a global supplier to many of its customers. To remain competitive and keep the company growing, Plastek makes significant investments in people and training, automation, and other leading-edge technologies. This allows our company to fight both U.S. and overseas competition, keep the jobs we have, and create more. Throughout our history, Plastek has understood that the key to our success lies in our hard-working and dedicated work force. Our company culture and work ethic is common in all divisions, worldwide, and remains extremely focused on satisfying our customers. We know they have a choice and we want them to make Plastek their #1 choice.
E-mail: info@plastekgroup.com
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HR Connection TALENT CONTINUES TO BE A KEY DRIVER IN MANUFACTURING COMPETITIVENESS Over the next five years, 20th-century manufacturing stalwarts like the United States, Germany and Japan will be challenged to maintain their competitive edge to emerging nations such as China, India and Brazil, according to the 2013 Global Manufacturing Competitiveness Index report from Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group and the U.S. Council on Competitiveness. The report confirms that the landscape for competitive manufacturing is in the midst of a massive power shift — based on an in-depth analysis of survey responses from more than 550 chief executive officers (CEOs) and senior leaders at manufacturing companies around the world.
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The report also found that access to talented workers is the top indicator of a country’s competitiveness –— followed by a country’s trade, financial and tax system, and then the cost of labor and materials. Enhancing and growing an effective talent base remains core to competitiveness among the traditional manufacturing leaders — and increasingly among emerging market challengers as well.
economy grew by eight percentage points over the first quarter to 63 percent. Uncertainty among executives fell to 30 percent, and only 7 percent were pessimistic. This sentiment was echoed in a larger report conducted by ThomasNet.com’s Industry Market Barometer® (IMB).
HIRING STILL A CHALLENGE FOR MANUFACTURERS A new report from PricewaterhouseCoopers (PwC) shows that manufacturing businesses have a rosier outlook for both their own business and the U.S. economy at large, but still face considerable challenges when it comes to hiring.
According to ThomasNet.com’s research, manufacturers need to strategize on how to build a newer, younger, and more powerful work force. Many manufacturers see education institutions as offering the best chance to cultivate a new talent pool, and are calling on schools to offer more manufacturing-specific skills training, as well as to increase emphasis on science, technology, engineering, and mathematics (STEM) disciplines.
Culled from interviews with 60 United States-based industrial companies, the second-quarter Manufacturing Barometer shows optimism for the U.S.
The report also highlighted manufacturers’ struggles to find qualified workers.
DEPARTMENTS > Contact: Stacey Bruce
Three Qualities You Should Seek When Selecting a Successful Supervisor Selecting someone to be a supervisor can be a daunting task. Everyone thinks they can be in charge, but, in actuality, very few have the tools to be successful. In many organizations, technical proficiency earns you a leadership role. While it is certainly important to be technically competent, being a successful supervisor involves much more than simply running a machine better than everyone else.
2. Positive Attitude. This person will represent your organization to customers, vendors and employees. Make sure they exude the right attitude, particularly when things are not going well.
Below are three qualities that you should seek when looking to promote someone into a supervisory role:
3. Approachable Personality. Supervisors need to be available and welcoming to their staff. Isolating themselves from their employees keeps them in the dark about potential problems that only their staff may know about. In addition, if you avoid your employees, they will believe you don’t care about them. Not exactly the way to motivate a team.
1. Problem Solver. Does the candidate anticipate problems and have several viable options to solve them? Anyone can see problems yet a good leader not only sees them when they happen but sees them coming and prepares a fix well ahead of any disastrous consequence.
Promoting someone into leadership positions is one of the most important duties anyone performs; in fact, the future success of your company may rest on whom you select to fill these critical roles. While there are no guarantees, following the formula above will certain-
ly increase the chance that you made the right choice. For more information about the Association’s regionally recognized Certified Supervisory Skills Series, please contact me at 814/833-3200, 800/815-2660 or dmonaghan@ mbausa.org. I also encourage you to visit the Association’s website, www.mbausa.org, to learn more about our upcoming offerings.
Dan Monaghan is the director of Training at the Manufacturer & Business Association.
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Events
HR Essential Certification Series — Erie
From left: Association HR Specialist Robyn Hopper and Cheryll Snyder, Process and Data Automation, Inc.
2013 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 www.mbabizmag.com for complete coverage.
HR Essential Certification Series — Erie
From left: David Brooks, Gaudenzia Erie; Sharon Morettini, Marquette Savings Bank; Jaime Parker, Career Concepts Staffing Services; and Robyn Hopper, Association HR specialist.
HR Essential Certification Series — Grove City
From left: Cindy Cullen, Central Electric Cooperative Inc.; Megan Richter, KMJC Inc.; Karen Grabbe-Listisen, Butler County Housing and Redevelopment Authority; and Sheila Kern, Onex Inc.
HR Essential Certification Series — Erie
From left: Cara Herbstritt, Electrical & Mechanical Systems, Inc.; and Association HR Specialist Robyn Hopper.
HR Essential Certification Series — Titusville
Front row, from left: Joie Alden, Matric Limited; and Debbie Amon, Travaglini Enterprises, Inc. Back row, from left: Paula Rickert, Roll Forming Corporation; Jennifer Lipps, Travaglini Enterprises, Inc.; and Justine Parcher, Arrow Electric Inc.
Leadership for Team Leaders — Erie
Front row, from left: Lisa DeFilippo, Association Training instructor; Elsie Kluever, Cristal Global; Nicole Krystoff, The Regional Cancer Center; Tammy Edwards and Kelly Thompson, Homerwood Hardwood Flooring. Back row, from left: Garrett Leech, Leech Industries; David Rowland, Sunshine Cleaning; Chris Knoll, Eriez Manufacturing; Bill Kuhns, Signal-Tech; and Michael Garske, Ridg-U-Rak, Inc.
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Certified Supervisory Skills Series — St. Marys
Front row, from left: Troy Shupe, GKN; Toni Oskorus, Mex-America Foods; Kim Mckeal, BFG Manufacturing Services; and Ed Pieczynski, GKN. Back row, from left: Gary Cunningham, GKN; Shawn Ehrensberger and Charlie Miller, Bluewater Thermal Solutions; Doug Price, Advantage Metal Powders; Bruce Hermanowicz, Bluewater Thermal Solutions; and, Justin Riekofsky, GKN.
Certified Supervisory Skills Series — Erie
Front row, from left: Nona Weaver and Laura Huff, Accuspec Electronics; Jennifer Groves, Widget Financial; Lisa Nesgoda, Ridg-U-Rak; Tammy Baker, Marquette Savings Bank; and Maria Ramos, Medicor Associates. Back row, from left: Gerald T. Battle, Office of Children and Youth; Steve Cox, McInnes Rolled Rings; Steve Dill and Wes Palmer, Widget Financial; Jonathan Rilling, Erie Homes for Children and Adults; Brian Veshecco, Signal-Tech; and Andrew Phillips, McInnes Rolled Rings.
Supervisory Skills Series — Erie
Front row, from left: Mickie Baiera, County of Erie – Domestic Relations; James Vaughn, The Warren Company; and Trisha Snook, Marquette Savings Bank. Back row, from left: Heath Litt, Cristal Global; Tom Kern, Erie County Juvenile Probation; Paul Markiewicz, Erie County Adult Probation; and Sam Clarke, Erie Bronze and Aluminum.
Certified Supervisory Skills Series — Erie
Front row, from left: Pradip Upreti, Accuspec Electronics; Sue Clawson, Welch Foods, Inc.; Kim Teribery and Shara Goudy, Erie Homes for Children and Adults; Andrea McCall, Eriez Manufacturing; Kim Headley, Advanced Cast Products; Phil Orr, Ricky Ayers and Kevin Petrarca, Channellock, Inc.; Monte L. DeFrances, Deist Industries; and Jesse Lyle, Electric Materials. Back row, from left: Keith Varney, Housing and Neighborhood Development Service; Michael C. Leone, Widget Financial; Michelle Battko, Shriners Hospitals for Children – Erie; Kevin Nellis, Channellock, Inc.; David Exler, Erie Bronze & Aluminum Company; Justin Plyler, Plyler Enterprises; and Sue Vanck and Jacob Nesgoda, Widget Financial.
Certified Supervisory Skills Series — Meadville
From left: Lewis Nordin, Erie Homes for Children & Adults; Greg Scott and Leslie Scott, Greenleaf Corp; Harold Goodwill, Erie Homes for Children & Adults; Larry R. Holben, Greenleaf Corp.; Mark Cagnoli, Ainsworth Pet Nutrition; and Chad Hershberger, Calumet GP LLC.
Certified Supervisory Skills Series – Erie
Front row, from left: Sharon Ritter, ACL; Rusty Trice, Cristal Global; Innocent Nwaizu, Erie Homes for Children & Adults; Carl Craker, Corry Manufacturing; Bryant Richardson, Erie Bronze & Aluminum; and Candy Cardot and Angelia Knupp, Erie Homes for Children & Adults. Back row, from left: David Kostreba, Berry Plastics; Peg Hannold, ACL; Marisa Casher, FMC Technologies; Kim Misko, Eriez Manufacturing; James Shaver IV, Nikki Titch, Randy Proper, and Tyler Lowe, Corry Manufacturing; and Jeff Hazlett, Protective Industries.
Certified Supervisory Skills Series — Warren
First Row, Left to right: John Swanson, Betts Industries Inc.; Brian Davis; Superior Tire; Ryan Betts, Betts Industries Inc. and Brandon Towne, Superior Tire. Second Row, Left to right: Charles Carter, Josh Tucker, Thomas Votee, and Larry Drayer, Superior Tire.
October 2013 > www.mbabizmag.com > 31
Legal Q&A WHEN SHOULD I HAVE MY EMPLOYEES SIGN A NON- COMPETE AGREEMENT?
For a noncompete agreement to be enforceable, there must be “consideration,” which is a legal term for an exchange of value. For noncompete agreements obtained from newly hired employees, Pennsylvania courts have determined that the offer of initial employment is sufficient consideration or benefit to the employee in exchange for agreeing to not compete with the employer should the employment relationship terminate. For existing employees, however, additional consideration is required to make an agreement enforceable. When employers obtain noncompete agreements with longstanding employees without providing anything of value in return, they are obtaining an un-
enforceable agreement. While the additional consideration does not have to be of tremendous value, it must provide a real benefit that the employee was not otherwise entitled to receive. SHOULD I HAVE ALL OF MY EMPLOYEES SIGN A NON- COMPETE AGREEMENT?
Employees who do not have an essential function in the company typically should not be asked to sign noncompete agreements since it is difficult to establish a legitimate business purpose in doing so and may prevent the individual from being able to make a living. ARE NONCOMPETE AGREEMENTS AFTER AN ACQUISITION ENFORCEABLE?
As with many answers to legal issues, it depends. If the acquisi-
tion is a stock purchase and the acquired company keeps a separate existence, the noncompete agreement should not be affected. The company will still be around to enforce the agreement. However, when a company is merged into another company, or where the acquisition takes the form of an asset purchase, the answer is less clear. Under Pennsylvania law, noncompete clauses in employment agreements are not assignable to successor employers unless there is either an explicit provision contained in the agreement making it assignable, or evidence that the employee consented to the assignment. Have a legal question? Get answers. Call the Association’s Legal Hotline today at 814/8333200 or 800/815-2660.
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32 < www.mbabizmag.com < October 2013
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DEPARTMENTS > Contact: Stacey Bruce
Restrictive Covenant Violations Costly for Employers, Ex-Employees In a case that started almost a decade ago, a Pennsylvania court recently ruled that a group of former employees violated the nonsolicitation clause in their employment agreements with their former employer. In B.G. Balmer & Co. Inc. v. Frank Crystal & Co., Inc., et al., the court was presented the question of whether a group of insurance brokers violated the nonsolicitation clause in their employment agreements with their former employer Balmer. Only a few months after meeting with a recruiter from Crystal, a group of Balmer employees resigned on the same day to start working for the new employer Crystal. Following their joint departure, a group of clients switched insurance brokers from Balmer to Crystal. Balmer filed suit alleging the clients switched insurance brokers due to
the former employees’ breaches of the nonsolicitation clauses in their employment agreements. At trial, Crystal and the former employees argued the clients chose to switch insurance brokers on their own, and not due to inappropriate solicitation. The result: The judge not only awarded the former employer, Balmer, $2.4 million in compensatory damages, but also $4.5 million in punitive damages. This case serves as a reminder to both former employees and potential new employers about the dangers of violating post-employment restrictive covenants. In situations involving postemployment restrictive covenants, the former employee and the new employer must take care to steer clear of running afoul of any contractual provisions that might subject them to monetary
penalties and litigation. Where such covenants exist, the new employer and employee should ask themselves whether the employment can proceed without violating the contract. The Association’s Legal Services Division can assist you with a variety of employment law issues. Please contact me at 814/833-3200, 800/815-2660 or tlamary@mbausa.org for more information.
Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.
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October 2013 > www.mbabizmag.com > 33
<RXU 2QH 6WRS 6WHHO 6HUYLFH &HQWHU IRU <HDUV DQG &RXQWLQJ We use our 200,000 square foot facility on Erie's West side of town to store over 2,000 different inventory items, 2,500 tons of steel, two lasers, two torches, water jet, plasma and dozens of saws to cut steel to your requirements.
Robert Warren President
We also offer a full fabrication department that uses several large overhead cranes to support our plate and angle rolls, welding stations, press brakes and general fabrication areas. If it can be made out of steel, we can make it and make it right.
Matric Group is comprised of Dynamic Manufacturing in Pittsburgh, PA and Matric in Seneca, PA. Both provide Electronic Manufacturing Services, Electronics Engineering Design/Layout Services, Aftermarket Services, Box Build and Cable Assembly.
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34 < www.mbabizmag.com < October 2013
People Buzz MANUFACTURER & BUSINESS ASSOCIATION ANNOUNCES PROMOTION, NEW HIRE The Manufacturer & Business Association (MBA) has promoted Stacey Bruce to director of Human Resources (HR) and hired Angela Zaydon, Esq. as its state government relations representative in Harrisburg.
Bruce, who most recently served as the Association’s HR supervisor and earned her Senior Professional in Human Resources (SPHR) certification in June 2013, is responsible for guiding and managing the department’s Human Resources services provided to Association members. Bruce, who earned her business management degree from Penn State University, is certified as a SPHR by the Human Resource Certification Institute (HRCI).
DEPARTMENTS > Contact: Karen Torres
She also is a past president of the Human Resource Management Association (HRMA) Board of Directors. Zaydon, who joins the Association as its state government relations representative in Harrisburg, is responsible for developing state legislative priorities and strategies; encouraging membership grassroots activities; and lobbying on behalf of a pro-growth, pro-business agenda. She joins the MBA after holding several positions with prominent associations, including as director of state relations at America’s Catholics for Religious Freedom and director of legal and public policy for the Pennsylvania Newspaper Association. She earned her Juris Doctor from Widener University School of Law and political science degree from Canisius College.
CRN MAGAZINE RECOGNIZES CMIT SOLUTIONS’ BURNSIDE Local entrepreneur Beth Burnside recently added another feather in her cap.
The president of CMIT Solutions of Erie, an IT service provider for the small and mid-sized business community, has been named to CRN Magazine’s prestigious list of Women of the Channel. The annual list recognizes nearly 300 female executives across vendor channel organizations, distributors and solution providers for their achievements over the past year. Burnside earned the honor following a nomination from the editors of CRN Magazine, who chose candidates based on their achievements as executives and the amount of influence they wield over the technology channel. >
Our story O t iis an A American i story... t In early 1973, Tech started as a small tooling and mold building business in the back of a nearby rented garage. Since then, Tech has grown to become a key employer within the community and a major sponsor of team based events that inspire the Competitive Spirit. The Tech Molded Plastics family is proud to celebrate a long history of competitive spirit and the talent that our people share. The highly skilled men and women at Tech are the innovators, makers and doers of our
trade. They are the backbone of America and the pride of our workforce. We have fought through difficult times and have seen amazing growth through diligent effort. Bright hope for the future is possible with the blessings of faith, family, friendship, and dedication to hard work. Thank you to the people of Tech! Congratulations on 40 years in business serving precision manufacturing and high performance molded plastics in 2013.
Tech Molded Plastics, Inc. | 1045 French Street, Meadville, PA 16335 | 814.724.8222
October 2013 > www.mbabizmag.com > 35
People Buzz BATCHELOR APPOINTED TRUSTEE OF GREAT LAKES PROTECTION FUND Governor Tom Corbett recently appointed Michael Batchelor, president of The Erie Community Foundation, to the board of the Great Lakes Protection Fund.
Since inception, the Fund has committed more than $68.6 million to 252 projects promoting the health of the Great Lakes ecosystem. Batchelor is one of two gubernatorial appointments from Pennsylvania. The Fund is a private, nonprofit corporation formed in 1989 by the governors of seven states bordering the Great Lakes. Current priorities of the Fund include ensuring sustainable water resources, protecting human health, controlling pollution, reducing persistent
toxins, protecting coastal wetlands, fish and wildlife habitats and stopping invasive species. STAIRWAYS CEO NAMED TO NEW STATE ASSOCIATION William F. McCarthy, president and CEO of Stairways Behavioral Health, headquartered in Erie, has been named to serve on the board of directors of the Rehabilitation and Community Providers Association (RCPA), a new association that will be among the largest state health and human services trade groups in the nation.
RCPA was created by a merger between the Pennsylvania Association of Rehabilitation Facilities (PARF) and the Pennsylvania Community Providers Association (PCPA).
DEPARTMENTS > Contact: Karen Torres
ORTHOPEDIC SURGEON JOINS LECOM SPORTS & ORTHOPEDIC MEDICINE Joshua A. Tuck, D.O., has joined LECOM Sports & Orthopedic Medicine, part of Medical Associates of Erie, the Clinical Practices of LECOM (the Lake Erie College of Osteopathic Medicine).
A specialist in orthopedic surgery with a dual fellowship in orthopedic sports medicine and arthroscopy, Dr. Tuck received his medical degree from the University of New England. After completing a five-year Orthopedic Residency at Millcreek Community Hospital, he went on to complete a fellowship at the University of Massachusetts Memorial Medical Center during which time he served as a team physician for the Boston Red Sox.
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Rod Griffin, CEO 455 Allegheny Blvd. Franklin, PA 16323 E-mail: rgriffin@specfab.com (814) 432-6406 • Fax: (814) 432-6394 www.specfab.com
36 < www.mbabizmag.com < October 2013
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