September 2013 Business Magazine

Manufacturing Day (MFG DAY) addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry.

Join with fellow manufacturers across the country in marking the second annual Manufacturing Day on Friday, October 4, 2013.

Hosting an open house provides manufacturers with an opportunity to tell their company’s story, dispel outdated myths about manufacturing, inspire a new generation of manufacturers, and connect with their communities.

In opening your plant to visitors, you can also open minds — expanding knowledge about and improving public perception of careers in manufacturing, as well as showcasing manufacturing’s value to the U.S. economy.

Visit www.mfgday.com to schedule your company’s Manufacturing Day event or to access their easy to use resources.

www.mfgday.com

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXVI, NUMBER 9

SEPTEMBER 2013

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Trust and Expertise Navigate the Grid / Page 12

12

September 2013

EDITORIAL >

FEATURES >

9 / Health Matters

3 / Spotlight

Penelec President Scott Wyman discusses how his company, a subsidiary of the Ohiobased FirstEnergy Corp., has been impacted by deregulation of the Commonwealthâ&#x20AC;&#x2122;s JOHN MILLS electric industry and how teaming with 11 / Legal Brief third-party energy suppliers has created more Why development of the natural gas industry choices for the consumer. faces legal and technical uncertainties.

Discover how defined contribution plans can offer choice and greater engagement for your employees.

12 / MBA, EEA-PA and NRG

THOMAS A. PENDLETON

Since 2009, the Employersâ&#x20AC;&#x2122; Energy Alliance of Pennsylvania (EEA-PA) has supported membersâ&#x20AC;&#x2122; energy needs and ensured their Training Insert ability to maintain a competitive edge. Officials Learn about the Associationâ&#x20AC;&#x2122;s upcoming HR, explain how a new partnership between the professional development and computer MBA, EEA-PA and NRG Business Solutions training courses in our new Training Catalog. provides an additional level of trust, service and industry expertise that is unmatched â&#x20AC;&#x201D; and inspires confidence that companies are getting the best possible value.

Special Section >

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DEPARTMENTS > 4 / Business Buzz 16 / HR Connection

25 / On the Hill The development of natural gas in the Marcellus Shale region has greatly impacted the Commonwealth. Here, Kathryn Z. Klaber, CEO of the Marcellus Shale Coalition, explains how continued exploration in the region is set to ensure Pennsylvaniaâ&#x20AC;&#x2122;s position as a magnet for new jobs and manufacturing.

27 / Events See extensive photo coverage from the 2013 Golf Classic Tour at Whispering Woods Golf Club in Erie.

22 / HR Q&A 28 / 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!

September 2013 > www.mbabizmag.com > 1

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SPOTLIGHT > Nearly three years after the deregulation of the Commonwealth’s electric industry, both energy companies and their customers are operating in a very different energy market. And with more than 590,000 customers in 31 Pennsylvania counties, Penelec, a subsidiary of the Ohio-based FirstEnergy Corp., is one of the region’s largest energy delivery companies.

The Business Magazine recently sat down with Penelec President Scott Wyman to discuss how the company has been impacted by deregulation, and how teaming with third-party energy suppliers has created more choices for the consumer.

How has electricity deregulation affected Penelec/First Energy?

Penelec is still the company that delivers electricity to your place of business, restaurant, manufacturing facility, or house. We’re still responsible for the poles, wires, transformers — all the equipment required for delivering that electricity. Penelec is still the company that bills you for your electricity use, and we’re the company that repairs your service if you experience an outage. Penelec is the company you call if you have billing questions or service questions, most especially if you experience an outage. The only thing we don’t do anymore is generate or produce electricity. Penelec sold its power plants in the late 1990s — we are an energy/electricity delivery company.

Contact: www.mbabizmag.com

VOL. X X VI, NO. 9 SEPTEMBER 2013 Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor

Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Mark Hanaway Donald Hester Timothy Hunter Paul Kenny J. Gordon Naughton Dennis Prischak Sue Sutto Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org

What are the advantages of deregulation for your company and your commercial customers?

There are currently more than a dozen alternate suppliers offering electricity to Penelec customers. The major advantage of deregulation for Penelec customers is choice. In addition, competition for customers among alternate suppliers leads to lower electricity costs for Penelec customers. Deregulation allows Penelec customers to shop for an electricity supplier based on many factors including price, green power and other factors. Finally, if a Penelec customer chooses not to shop, we will provide electricity to those customers at a competitive price. Penelec conducts auctions periodically throughout the year to purchase electricity for those customers who choose not to shop. The auctions are designed to purchase electricity in the wholesale electricity market at competitive prices.

Managing Editor & Senior Writer

Karen Torres ktorres@mbausa.org

Contributing Writers

John Mills Thomas A. Pendleton Tungsten Creative

Photography

Shutterstock.com NRG Business Solutions Casey Naylon

Advertising Sales

Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org

What advice do you give commercial customers who are shopping for an electrical supplier?

Penelec encourages all of its customers to go to www.papowerswitch.com and at least look at the options available in terms of price and the companies offering electricity to Penelec customers. The papowerswitch.com website is constantly updated with pricing information and is maintained by the Pennsylvania Public Utility Commission. And with more than a dozen companies offering service in the Penelec service territory, there are plenty of options available to Penelec customers around pricing and the type of generation used to produce the electricity. In addition, Penelec recommends that any customer who chooses an alternate supplier clearly understands the terms and conditions of that supplier — things like length of the contract, price that may be involved for switching suppliers, etc.

Design, Production & Printing

How do you work with third-party suppliers such as the MBA’s energy savings program, the Employers’ Energy Alliance of Pennsylvania?

Penelec, and our parent company FirstEnergy, maintain a working relationship with suppliers in the Penelec service territory. This is especially true in the area of customer education. Penelec and alternate suppliers conduct customer education on an ongoing basis throughout the year. This education is rooted in how to shop for electricity and an alternate supplier, pricing, where to go for information on alternate suppliers, and the need to understand the terms and conditions an alternate supplier uses when you sign up with them to serve you. Again, the papowerswitch.com website is a wonderful source for this information, and customer choice information is also available at www.firstenergycorp.com.

Finally, if a customer has any questions about choosing an alternate supplier, or has concerns about a supplier, they are encouraged to call the Pennsylvania Public Utility Commission at 800/692-7380.

What does the future hold in terms of electricity costs and supply?

Nobody can accurately predict the future price of electricity. And, the supply of electricity is governed by the regional power pool in which Penelec operates — PJM. However, environmental regulations are sure to play a part in both the price and supply of electricity in the future. Already there are many companies who are retiring existing generating stations due to new and changing environmental rules and regulations. Many of those regulations will also impact the construction of new generating stations. The economy — when it improves — will also play a role in the price and supply of electricity.

Printing Concepts Inc. printcon@erie.net

ON THE COVER: Since 2009, the Employers’ Energy Alliance of Pennsylvania (EEA-PA) has supported members’ energy needs and ensured their ability to maintain a competitive edge. Officials explain how a new partnership between the MBA, EEA-PA and NRG Business Solutions provides an additional level of trust, service and industry expertise that is unmatched — and inspires confidence that companies are getting the best possible value.

For full story, see 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 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.

September 2013 > www.mbabizmag.com > 3

Business Buzz NATIONAL MANUFACTURING DAY SLATED FOR OCTOBER 4 To celebrate the second annual Manufacturing Day on Friday, October 4, 2013, manufacturers, educational institutions and others are encouraged to host events that will highlight the importance of manufacturing to the nation’s economy and draw attention to the many rewarding high-skill jobs in manufacturing fields.

In its first year in 2012, more than 240 events were held in manufacturing facilities in 37 states and more than 7,000 people participated. This year’s celebration will feature open houses, public tours, career workshops and other activities to increase public awareness of modern manufacturing. ”Manufacturing Day is a great opportunity to shift Americans’ perception that it is not our grandfather’s manufacturing anymore and to showcase the tremendous career opportunities manufacturing has to offer,” said Jay Timmons, president and CEO of the National Association of Manufacturers, a co-sponsor of the event. ”This day is an engaging way to attract young people and get them excited about pursuing a career in a technologydriven, innovative environment that will also provide a good-paying job.

We encourage all manufacturers and manufacturing associations to get involved and share what we already know — manufacturing makes us strong.”

To get involved in Manufacturing Day, visit www.mfgday.com.

2013 ERIE CONFERENCE FOCUSES ON EARLY CHILDHOOD EDUCATION The 2013 ERIE conference, held July 29 at Penn State Erie, The Behrend College, approached the value of early childhood education from an economist’s perspective, with one basic question: Is there a measurable economic benefit to these programs?

According to Jim Kurre, associate professor of economics at Penn State Behrend and director of the Economic Research Institute of Erie, there is. ”There is a huge economic payoff,” he said. ”It requires a long-term view — it takes some time for these kids to age through the system — but the research is solid.”

He sees a benefit even for businesses, and for families without young children. The conference’s keynote speaker, Timothy Bartik, a senior economist for

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DEPARTMENTS > Contact: Karen Torres

the Upjohn Institute for Employment Research, discussed that during his talk.

The conference also included presentations by Nick Scott Jr., vice president of Scott Enterprises and a member of the Pennsylvania Early Learning Investment Commission; and Marlene D. Mosco, regional president of PNC Financial Services Group, which in 2004 launched the ”Grow Up Great” campaign, a $350 million bilingual initiative for children.

For more information or highlights from the 2013 conference, visit www.eriedata.org.

VELOCITY NETWORK LAUNCHES OFFICE TECHNOLOGY MAKEOVER PROGRAM Office technology and fiber optic Internet service provider Velocity Network is sponsoring a $50,000 office technology makeover program for Erie County businesses and nonprofits.

The program will award two $25,000 makeovers — one to a for-profit business and a second to a nonprofit organization — that will include office technology products including workstations, security appliances, software, printers and more from Lenovo, Dell Sonicwall, Xerox, Microsoft and Velocity Network. ”For more than 20 years, the Erie community has helped Velocity Network grow to its leadership position for which we are tremendously grateful. Our Office Technology Makeover Program is a way to show how grateful we are,” said Joel Deuterman, CEO of Velocity Network.

Program guidelines and applications will be available online only at MakeoverMyIT.com. Applications can be submitted until 11:59 p.m. September 20, and the winners will be announced October 22.

Since 1990, Velocity Network has provided enterprise-level IT solutions to organizations throughout northwest Pennsylvania.

For more information, visit www.velocitynetwork.net.

ERIE INSURANCE EARNS TOP RANKING FOR SIXTH STRAIGHT YEAR For the sixth year in a row, Erie Insurance (ERIE) has been named by the Ward Group to its Ward’s 50 list of top performing property and casualty companies.

The Ward Group, an industry leading provider of industry benchmarking, analyzes the financial performance of 3,000 property-casualty insurers before naming the top performers in safety, consistency and financial performance over a five-year period. >

September 2013 > www.mbabizmag.com > 5

Business Buzz This is the 16th time ERIE has been on the list, published annually since 1991. ”Our customers believe in and have benefitted from ERIE’s value proposition — superior coverage and service at a competitive price,” said Terry Cavanaugh, president and chief executive officer of Erie Insurance. ”The Ward’s 50 list affirms that we have the financial stability our customers, agents, shareholders, and employees expect and depend on.”

Based in Erie, Erie Insurance is the 15th largest homeowners insurer and 12th largest automobile insurer in the United States, with more than 4.6 million policies in forces and operations in 11 states and the District of Columbia.

For more information, visit www.erieinsurance.com.

DEPARTMENTS > Contact: Karen Torres

HOFFMAN INDUSTRIAL PURCHASES NEW EQUIPMENT Hoffman Industrial Company recently added a new piece of equipment, the VersaLift 40/60, a forklift capable of lifting up to 60,000 pounds. The Versa-Lift complements the company’s current line of equipment, which includes numerous The Versa-Lift 40/60 is capable of lifting up to 60,000 pounds. forklifts that range from 8,000 to 60,000 pounds, a 22-ton Link Belt crane, and a fleet of tractors and trailers for hauling equipment and machines.

Hoffman Industrial, Erie’s oldest family owned company, has been in business since 1846 and is an expert in moving and hauling equipment and machinery.

For more information, visit www.hoffmanindustrial.com.

The key to our completed expansion?

A bank that recognizes it’s just a start.

You’re adding staff, equipment and space. You’re a growing middle market company. Choose a bank that’s right for you.

First National Bank, based locally, possesses a unique understanding of our region’s economy, and can offer you insightful guidance and sound solutions.

For local decision making and expertise in lending, treasury management, equipment leasing, insurance and wealth management, find the growthoriented relationship you deserve, at First National Bank.

To learn more, visit fnb-online.com or call 866-362-4603.

NATIONAL WINNER Overall Client Satisfaction Small Business Banking and Middle Market Banking

6 < www.mbabizmag.com < September 2013

We’re local people who are familiar with businesses in Erie & Crawford County, PA. Our personalized approach means area businesses will benefit from our full line of financial products with the opportunity to bring credit union benefits to your employees.

Merchant Services • Merchant Direct Program FInancial Services for Employees

Kristi Bailey, Director of Business Development Services (814) 825-2436 Ext. 1035

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Loans subject to credit approval.

Membership eligibility required.

Health Matters

EDITORIAL > By John Mills

Defined Contribution Plans Offer Choice, Engagement The rising cost of health care has caused employers to re-examine how much they pay for insuring their employees and caused them to think more about defined contribution plans.

• The consumer’s desire to have more choice and involvement in health care;

With a defined contribution plan, an employer can decide exactly how much they want to contribute to an employee’s health insurance and have certainty about cost. Moreover, a defined contribution plan can be offered by a company of any size.

• More freedom for providers than was possible under managed care.

What is a Defined Contribution Plan?

Technically speaking, a defined contribution plan is not any specific kind of health plan. Instead, it is a concept that can be applied to different approaches that employers can use to manage health care for employees.

With a defined contribution plan, a company gives each employee a fixed dollar amount that the employees can use to purchase health insurance and dental and vision benefits. Some employers will allow employees to put any money not spent on these benefits into a Flexible Spending Account or to take it as a cash benefit.

Certainly, the rising cost of health insurance is a major factor in the increased popularity of defined contribution plans. Any plan that can place some kind of limit on health care expenses, or provide some certainty about how much money will be paid, will get close scrutiny by companies concerned about the bottom line.

Defined contribution plans also touch on some areas that are becoming more important to both employers and employees. These include:

• Concern about quality; • Increased information; and

Common Characteristics of Defined Contribution Plans 1. Choice. The most common characteristic. Defined contribution plans are intended to give members greater flexibility in benefit decisions. The choices include: plan choices, care choices and the ability to opt out.

2. Increased cost sharing. The increase will be between the employer and the member.

3. Greater engagement.

Because the member has more involvement in the cost of care, the member often has greater knowledge and engagement in management of their health care.

Positives for Employers • There is no limit on the amount of money an employer can contribute to an employee’s defined contribution health plan.

• There is no minimum contribution requirement for an employer.

• Employer is able to set the amount that makes the most sense for the company.

• Employers can also give employees different contribution amounts based on classes of employees.

Providers like the fact that defined contribution plans enable them to regain control over decisions concerning patient care. At minimum, they want a greater ability to advise patients who will make the final decision.

Concerns about quality are another factor driving popularity. There is evidence that defined contribution plans will enhance the quality of care and also increase the amount of information available on the quality of health care, which makes it popular in these days when that focus is preferable for many. And small businesses find that with defined contribution plans, they can have a feasible way to provide some kind of health insurance for their employees.

For more information about defined contribution, consumer-directed health plans offered by UPMC Health Plan, visit http://www.upmchealthplan.com/ healthyu/hia.html.

John Mills is senior director, Consumer Products 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.

The popularity of defined contribution plans is rising along with the costs of premiums, but there are additional factors that explain the rise.

September 2013 > www.mbabizmag.com > 9

:OHSL;,* Shale Training & Education Center A collaboration of Pennsylvania College of Technology and Penn State Extension

ShaleTEC was established to serve as the central resource for workforce development and education needs of the community and the oil and natural gas industry.

A sample of current course offerings include:

PEC Basic – SafeGulf/SafeLand Orientation Shale Exploration, Development & Production Overview Fall Protection Competent Person Qualified Rigger & Signal Person Confined Space Entry & Rescue Heavy Equipment Safety Aerial Work Platform Safety Operations Rough Terrain Forklift Certification H2S Awareness Hot Work Air Monitoring OSHA 10 & 30 General Industry Medic First Aid – Basic Plus CPR, AED & First Aid for Adults Incipient Fire Extinguisher Training Intro to Supervisory Control and Data Acquisition (SCADA)

prepare for employment in the

natural gas industry

Penn College offers degrees that work.

Prepare for your career in the natural gas industry today. Visit www.pct.edu/naturalgas or call the Admissions Office at 800-367-9222 for more information.

Classes can be customized to meet your company’s needs and held at your site or one of these ShaleTEC locations:

Penn College, Main Campus, Williamsport, PA Penn College, Energy Technology Education Center,

Montgomery, PA Penn College, North Campus, Wellsboro, PA ShaleTEC Affiliate locations:

Penn State Beaver (Monaca, PA) Penn State DuBois Penn State Fayette (Lemont Furnace, PA) Penn State Wilkes-Barre (Northern Tier Center in Towanda, PA)

Visit www.shaletec.org or call 570-327-4775 for a complete listing of classes or for more information.

An affiliate of The Pennsylvania State University Penn College operates on a nondiscriminatory basis.

Penn College ® and degrees that work ® are registered in the U.S. Patent and Trademark Office.

Legal Brief

EDITORIAL > By Thomas A. Pendleton

Development of Natural Gas Faces Legal, Technical Uncertainty Just like any other commodity, the price of natural gas is determined by the laws of supply and demand. Five years ago, the price of natural gas was approximately $13 per 1,000 cubic feet (mcf). This price, which was high by historical standards, created a financial incentive for energy companies to explore new sources of natural gas. Two of the sources discovered were the shale formations known as the Marcellus Shale and the Utica Shale.

As the new supply of natural gas from these shale sources increased (along with a decrease in demand caused by the recession in 2009), the price of natural gas began to fall. Currently, the price of natural gas sits at about $3.75 per mcf.

This decline in price has caused energy companies to look for ways to become more efficient in their drilling efforts.

For example, energy companies can now drill a shale gas well in 20 days, a process that took nearly 40 days several years ago. This decline in drilling time saves the energy company approximately $500,000 per well.

Furthermore, energy companies have improved their well design and fracking strategies so that they can recover more gas through each well. Drill pads are now smaller in size and more water is transported through above-ground pipelines, rather than by truck, which reduces traffic congestion and damage to roads.

The increased availability of natural gas, which is an environmentally cleaner energy source than coal, has caused consumers of energy to switch their energy suppliers. Electric utilities are shutting down their coal-fired boilers and converting to natural gas. Chemical companies and plastic manufacturers are bringing operations back to the

United States or expanding existing domestic facilities because the price of natural gas in our country is now substantially cheaper than the price of natural gas abroad.

A Look Ahead Trying to project how the energy market may look five to 10 years from now requires an understanding of both legal and technical factors. Generally speaking, each of the 50 states controls the environmental requirements for producing natural gas within their boundaries. These state-specific requirements vary widely. For example, Pennsylvania and Ohio encourage the development of shale gas by limiting the ability of municipalities to enact local ordinances that impose greater restrictions on drilling than the regulations passed at the state level.

Conversely, New York has a statewide moratorium on the development of shale gas, and New York courts have also upheld municipal bans on drilling, which would become effective if the statewide moratorium is lifted.

Technically speaking, development of shale gas continues to evolve. Extracting natural gas from the Utica Shale is still in the research and development stage. We know from experience that developing the Marcellus Shale took about three to four years to get production and costs to their current levels. Further development of natural gas from both of these formations requires additional investment in pipelines to transport the larger volumes of natural gas. Once these pipelines are in place, we will have a better understanding of the levels of production that wells drilled into the Utica Shale are likely to achieve.

of natural gas in the United States will exceed our country’s anticipated demand for this resource. As a result, plans are underway for numerous liquefied natural gas (”LNG”) export terminals to ship LNG overseas. These potential exports may decrease available supply for new or expanded domestic uses, such as increased use of LNG for transportation (long-haul trucks, locomotives, passenger vehicles), and power generation. If demand for natural gas begins to exceed the available supply for domestic uses, the price of natural gas will likely rise.

These are just some of the economic, legal, technical and political influences on the price of natural gas. And although the future cannot be predicted with certainty, one thing is clear: natural gas will remain an important energy resource for Pennsylvania’s manufacturers and residents for years to come.

For more information, contact Thomas A. Pendleton at MacDonald, Illig, Jones & Britton LLP at 814/8707756 or tpendleton@mijb.com.

Thomas A. Pendleton is a partner with MacDonald, Illig, Jones & Britton LLP and has been representing businesses, nonprofit corporations and individuals in a wide variety of legal matters for more than 15 years. He is a graduate of the Vanderbilt University School of Law.

Finally, some studies have shown that by the year 2020, the production September 2013 > www.mbabizmag.com > 11

MBA, EEA-PA and NRG: Trust and Expertise Navigate the Grid

Nearly three years have passed since the electric industry was completely deregulated in Pennsylvania. Results of deregulation are mixed among the 24 states that have enacted electricity deregulation plans, as increases in demand, supply and prices in some areas continue to raise questions about its viability. In Pennsylvania, however, deregulation has been a success.

to compete in selling electricity to utilities. Four years later, the Federal Energy Regulatory Commission issued an order that required utilities to open their transmission lines to competitors. Shortly thereafter, six states, including Pennsylvania, launched pilot programs.

Deregulation is actually the culmination of a process that began in 1935 when the Roosevelt administration forced the break up of large, multistate holding companies controlling approximately 75 percent of the country’s electric generating capacity. Utilities were given a governmentsanctioned monopoly over a limited territory in exchange for the promise to provide dependable electric service at a regulated rate. Approximately 300 power systems and 800 rural cooperatives were created under the legislation.

Over the past decade, there has been a proliferation of thirdparty energy management firms — companies providing consultative services and expert analysis to help clients reduce energy costs, protect budgets and navigate the complexities of deregulated market trends. This became the mission of Employers’ Energy Alliance of Pennsylvania (EEA-PA), a third-party energy management firm founded in 2009 by the Manufacturer & Business Association (MBA) to support members’ energy needs and ensure their ability to maintain a competitive edge. In August 2009, EEA-PA — one of the MBA’s most highly sought-after member services — became licensed as a third-party provider just as deregulation was taking place in the central Pennsylvania region.

During the 1970s, rising electric prices and global oil embargos stimulated public demands for more economical and alternative energy. And in 1978, Congress passed legislation requiring utilities to use renewable energy from wind, solar and other sources. The desire for change was sustained into the 1990s when the push for free competition began. The Energy Policy Act of 1992 addressed energy efficiency, conservation and management, and opened the industry for competition by permitting power generators 12 < www.mbabizmag.com < September 2013

Deregulation and third-party energy management

The menu of electrical rate options was complicated even before deregulation was fully implemented in Pennsylvania.

That complexity is now compounded as businesses have the ability to proactively procure their generation rates and, at the same time, implement cost-reduction strategies to

protect budgets. To effectively deal with the intricacies of pricing, scheduling and utilization rates, many commercial customers are turning to third-party advocates such as EEAPA to help them navigate the maze of pricing options and effectively manage risk in the volatile energy market.

Trust, service and industry expertise

Educating members how to make informed decisions about purchasing electricity is a priority of EEA-PA. The company instructs managers on how to compare providers using benchmark criteria, and how to apply that information to their own usage profiles. EEA-PA also provides an e-newsletter, keeping members updated on trends and developments in the erratic energy market, along with an instant, online Q&A service that links members to immediate information from industry experts.

During its first three years, EEA-PA members realized significant savings through variable pricing in the Day-Ahead Energy Market. Soon, however, EEA-PA began working with customers who could benefit from a greater variety of purchasing options. In the fall of 2012, EEA-PA entered into an alliance with NRG Business Solutions — a division of NRG Energy, one of the nation’s largest power generators — to expand the electrical purchasing products it could offer along with its risk management capabilities.

Start Saving Now

Trust and expertise: Wise choices when choosing an energy supplier.

EEA-PA has helped hundreds of MBA members, businesses of every size and type, save more than $11 million on their electricity costs.

The only way to find out which energy savings plan is right for your business is to contact the Association. Contact one of the EEA-PA’s energy representatives at 814/833-3200 or 800/815-2660, or click on ”Request a Quote” on www.eeapa.com. While you’re there, you can also register for the free MBA-Energy News newsletter, which delivers insightful Q&A in the ”Ask an Expert” section and timely energy updates to your inbox each month.

EEA-PA, with the assistance of its partner, NRG Business Solutions, applies quantitative skills, market insights, energy trends analysis and regulatory expertise to develop solutions that translate into significant bottomline savings for its members. At the heart of its service is the company’s engagement with MBA membership, a partnership that ensures complete objectivity and absolute dedication to managing members’ energy needs. ”Our mission as a third-party energy management company is the same as all of our MBA services — to enhance the productivity of our members,” says John Krahe, vice president of MBA. ”This engagement with the membership ensures trust, and instills confidence that members are getting the best possible value through EEA-PA.” > September 2013 > www.mbabizmag.com > 13

EEA-PA Regional Representative Chuck Jenkins; Scott Hart, vice president of Sales, NRG Business Solutions; and MBA Vice President John Krahe say the EEA-PA, NRG and MBA are committed to providing Association member companies with low-cost energy solutions.

A success-driven Fortune 500 company, NRG brings the strength and resources of a true industry leader, meeting the needs of customers of any size, offering them a wideranging energy portfolio. This depth and breadth makes possible the energy solution that can be developed and delivered efficiently, reliably and reassuringly. These solutions keep the power on — always on — in homes, businesses, factories, stadiums, campuses, hospitals and municipalities across the country. ”Many organizations want to improve energy efficiency, minimize their impact on the environment or simply reduce energy costs,” says Scott Hart, vice president of Sales, NRG Business Solutions. ”NRG has deep experience and insight that allows us to offer solutions that will help customers, of any size, meet their energy goals.”

NRG is more than a generator of power — they are a provider of solutions including renewable resources, smart energy solutions, backup generation, energy management systems, electric vehicle charging stations, grid power, district energy systems, and combined heat and power.

To date, they have invested more than $1 billion to deploy cleaner energy systems in their own operations. Renewable energy development, electric vehicle infrastructure and smart grid technology are just a few of the ways their innovative solutions can help people, businesses and communities build a sustainable future. ”NRG stands out for its best-in-class customer service and we will continue to raise the bar for what customers should expect from their energy company,” says Hart. ”Our integrated solutions help organizations make well-informed 14 < www.mbabizmag.com < September 2013

decisions about all aspects of energy, including energy efficiency and sustainability.”

This combination of trust, industry expertise and extensive product offerings translates into strong relationships between Association members and EEA-PA. The company is immersed in electrical markets, and offers understanding of trends and how to implement the most effective energy supply strategies. Supply management strategies are tailored to each company’s needs, incorporating pertinent, individualized information regarding variables affecting usage.

An important benefit of EEA-PA products is the ability to accommodate any type of business or organization, regardless of size. EEA-PA’s product spectrum ranges from fixed price to fixed/variable to completely variable pricing to complement customer desires for budget certainty and degree of risk. After the initial contract is created, EEA-PA distinguishes itself in the arena of customer service.

The company has a shared interest in the welfare of its members, and frequent communications are integral to the MBA partnership.

To date, more than 500 members have contracted with EEA-PA. ”We provide members who are interested in EEAPA with a thorough evaluation of their electrical usage,” says Krahe. ”We find that for some, current suppliers and purchasing models are yielding the best results, and we recommend they stay the course. For others, partnering with us makes the most sense. They get industry expertise along with the trust that comes through the association. It’s the best of both worlds.”

For more information, visit www.eeapa.com.

T R A I N I N G

S C H E D U L E

Training That Develops Effective Leaders “We have been using the Manufacturer & Business Association for our training needs for over 15 years and we have never been disappointed. We are very fortunate to have a local resource available to us that is ready to help us whenever our business demands change. We will continue to use the Association to help our company grow and stay competitive.”

— Heather Evans HR Manager AirBorn, Inc.

s orn, Inc. ory Skills Seriere is rv e ather Evans, AirB p He u d S an d e e ifi en rt Ce te G son, graduate Pe r Nel From left: Jennife

As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

T

R

A

I

N

I

N

G

October

November

Professional Development

Professional Development

Certified Supervisory Skills Series Course I (Corry) Course I (St. Marys) Course II Course II (Williamsport) Course II Course II (St. Marys) Course III (Williamsport) Price: $295 Members, $415 Nonmembers

10/3 and 10/10 10/1 and 10/2 10/8 and 10/15 10/8 and 10/9 10/16 and 10/23 10/22 and 10/23 10/29 and 10/30

Certified Supervisory Skills Series Course I Course II (Corry)

Course III Course III Course III (St. Marys) Course IV (Williamsport) Price: $295 Members, $415 Nonmembers

11/7 and 11/14 11/7 and 11/14 11/5 and 11/12 11/13 and 11/20 11/19 and 11/20 11/12 and 11/13

Leadership for Team Leaders Course III Price: $175 Members, $315 Nonmembers

10/9

Leadership for Team Leaders Course IV Price: $175 Members, $315 Nonmembers

11/6

10/21

Food Safety Certification Price: $145 Members, $250 Nonmembers

Food Safety Certification Price: $145 Members, $250 Nonmembers HR Essential Certification Series Interviewing & Hiring (Clarion) Terminations (Clarion) Employment Law (Clarion) Discrimination & Harassment (Clarion) Compensation & Benefits (Clarion) Exempt vs. Nonexempt (9 a.m. - Noon) Performance Management (1-4 p.m.)

Discrimination & Harassment Price: $70 Members, $140 Nonmembers

10/15 10/15 10/15 10/16 10/16 10/17 10/17 10/24

Computer Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III Price: $175 Members, $310 Nonmembers

10/10 10/17 10/24

“Environmental Reclamation Services takes pride in the continued education of our employees.

In seeking out a program that clearly defines the expectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager Environmental Reclamation Services

HR Essential Certification Series Terminations Price: $70 Members, $140 Nonmembers

11/18

11/14

Computer Excel 2007/2010 Level I Excel 2007/2010 Level II Price: $175 Members, $310 Nonmembers

11/5 11/26

Access 2007/2010 Level I Price: $175 Members, $310 Nonmembers

11/7

Access 2007/2010 Level II (Two Days) Price: $350 Members, $460 Nonmembers Quickbooks 2012 Price: $195 Members, $310 Nonmembers

11/14 and 11/21 11/15

“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certification Series. Knowing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fastpaced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager Moody and Associates, Inc.

S

C

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December

12/5 and 12/12 12/12 and12/19 12/3 and 12/10 12/11 and 12/18 12/17 and 12/18 12/3 and 12/4

Leadership for Team Leaders Course V Price: $175 Members, $315 Nonmembers

12/4

Computer Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III Price: $175 Members, $310 Nonmembers

12/3 12/10 12/17

Access 2007/2010 Level III Price: $175 Members, $310 Nonmembers

12/19

“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Business Association has allowed us to provide a cost-effective solution that is critical to our ability to stay competitive.”

— Joy Sherry, Human Resources Director Ainsworth Pet Nutrition

“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my everyday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant Intellectual Property Services

E

Training

Professional Development Certified Supervisory Skills Series Course II Course III (Corry) Course IV Course IV Course IV (St. Marys) Course V (Williamsport) Price: $295 Members, $415 Nonmembers

L

Regional Locations All courses are held at the MBA Conference Center in Erie, unless otherwise noted.

Bradford:

Holiday Inn Express 30 Tarport Drive Extension

Butler:

Fairfield Inn & Suites Route 8 and Route 422

Erie:

Manufacturer & Business Association Conference Center 2171 West 38th Street

Corry:

Corry Higher Educational Council 221 North Center Street

Clarion:

Holiday Inn 45 Holiday Inn Road

DuBois:

Best Western 82 North Park Place

Franklin:

Franklin Industrial & Commercial Development Authority 191 Howard Sreet

Hermitage:

LindenPointe 3182 Innovation Way

Kittanning:

Armstrong Educational Trust 81 Glade Drive

Meadville:

Holiday Inn Express 18240 Conneaut Lake Road

Mercer/Grove City:

Hampton Inn, Grove City 4 Holiday Boulevard

St. Marys:

Community Education Council of Elk and Cameron Counties 4 Erie Avenue, Suite 200

Titusville:

Titusville Community Development Agencies 110 West Spring Street

Warren:

Warren/Forest Higher Ed Council 589 Hospital Drive, Suite F

Williamsport:

Genetti Hotel 200 W. Fourth Street

* Handicap access and parking available at all sites.

Onsite Training Get more flexibility and convenience with our onsite training options ­— one of the most cost-effective choices for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Course Registration Contact Terry Nunez at 814/833-3200, 800/815-2660 or tnunez@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

ONSITE TRAINING PROFESSIONAL DEVELOPMENT Supervisory Skills Leadership for Team Leaders Customer Service One-Day Food Safety Certification And much more!

COMPUTER TRAINING Word Levels I, II, III Excel Levels I, II, III Access Levels I, II, III Outlook And much more!

How you need it.

When you need it.

Where you need it.

Considered a leader in professional development and computer training for more than 20 years, the Manufacturer & Business Association offers you the ease and flexibility of onsite training for groups of six or more employees.

Onsite Convenience: Nothing beats the convenience of training conducted at your facility. Let our expert instructors bring the training you need, when you need it, where you need it.

Customized Programs: From full-day to half-day programs, all of our courses can be tailored to address your organization’s specific needs.

Focused Interaction: Facilitated by our training specialists, your employees’ experience is further enhanced through group discussion on key topic areas specific to your company’s work environment.

Call Terry Nunez for more information about onsite training programs at 800/815-2660 or 814/833-3200, or visit www.mbausa.org.

NATIONAL FUEL RESOURCES, INC. RETAIL SERVICE AREA

HR Connection MARCELLUS SHALE PLAY CONTINUES TO GENERATE ECONOMIC BOOM The Marcellus Shale formation â&#x20AC;&#x201D; the second-largest natural-gas field in the world â&#x20AC;&#x201D; has been a blessing for Pennsylvaniaâ&#x20AC;&#x2122;s workers and our economy, according to a recent article on Philly.com.

Almost a quarter-million people in Pennsylvania work to produce natural gas from the Marcellus Shale or in related industries.

Due to the growth of hydraulic fracturing, the Marcellus has been responsible for more than 150,000 new hires in the past three years â&#x20AC;&#x201D; almost three-quarters of them state residents. The average salary in core fracking industries is more than $90,000 a year.

According to the article, in 2010 alone, oil and gas development utilizing fracking contributed more

than $11 billion to Pennsylvaniaâ&#x20AC;&#x2122;s economy. Williamsport continues to be at the center of this naturalgas boom, with an economic growth rate of 7.8 percent.

For more information, visit www.philly.com.

CONFERENCE TO TACKLE KEY ISSUES IN GROWING NATURAL GAS INDUSTRY Experts say there are still many opportunities for Pennsylvania manufacturers and service providers to profit from the Marcellus Shale industry, and to help these businesses understand the current issues at play, the Penn State Marcellus Center for Outreach and Research (MCOR) is hosting the 2013 Natural Gas Utilization Conference on September 10 and 11 in Pittsburgh.

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Through discussions and presentations by industry experts, government officials, and academic researchers, the third annual conference will help participants develop a better understanding of key issues across the nation and the impact shale plays have on the world energy market as America moves to expand its use of natural gas for transportation, manufacturing, and power generation.

Featured speakers include: Will Freeman, NGV Market Development, Chesapeake Energy; Mark Brocklehurst, global account executive-Unconventional Resources, GE Oil & Gas; and Dante Bonaquist, senior corporate fellow at Praxair.

For more information, visit www.2013utilization.org.

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DEPARTMENTS > Contact: Stacey Bruce

Court’s Ruling on DOMA Has Implications for Employers On June 26, 2013, the U.S. Supreme Court decided a landmark case involving same-sex marriage. The court ruled that Section 3 of the Federal Defense of Marriage Act (DOMA), which provides that only persons of the opposite sex are recognized as ”spouses” and ”married” for purposes of federal law, violates the Fifth Amendment’s guarantee of equal protection as applied to persons of the same sex who are legally married under the laws of the state.

This decision has implications for employers that sponsor retirement, fringe benefit and health-care plans, as well as employers’ payroll systems.

By holding that Section 3 of DOMA is unconstitutional, the Court’s decision means that the complexities associated with the differential

treatment of opposite sex and samesex couples may come to an end, at least in those states that recognize same-sex marriages.

Employer plan documents will need to be examined closely to determine if amendments are required to change the definition of a ”spouse” or ”marriage.” This could require revisions in plan documents related to retirement, COBRA and FMLA practices, as well as income tax withholding and employment payroll tax.

According to the Groom Law Group, a prominent Washington, D.C. law firm that provided background information for this article, while waiting for guidance from the federal and state regulators, employers should obtain same-sex marriage information, review

and amend plan documents, and modify policies and procedures if necessary.

The DOMA decision and its impact will grow if and when more states come to recognize same-sex marriage.

For more information, please contact me at 814/833-3200, 800/815-2660 or psmith@mbausa.org.

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.

/$1'2:1(5 $'9,&( Oil and gas leases Marcellus and Utica Shale land law Royalty agreements Mineral rights and conveyances Pooling and unitizing agreements Title research and transfer Dispute resolution

Attorneys at Knox McLaughlin Gornall & Sennett, P.C. have helped numerous landowners with mineral rights and leasing issues. We have experience with oil and gas leases, Marcellus and Utica Shale land law, pooling and unitizing agreements, and mineral rights conveyances. Members of our estate planning and administration group are also well equipped to advise landowners on estate planning matters to help them preserve assets to be passed on in a manner consistent with their goals. For more information, contact us at 814-459-2800 or via email to knox@kmgslaw.com.

Erie, PA

Jamestown, NY

North East, PA

814-459-2800

www.kmgslaw.com September 2013 > www.mbabizmag.com > 17

Investing in our future...

in Erie

and around the world.

Since 1926 FMC Technologies has been building petroleum meters in Erie for the domestic and international oil and gas industry. Fostering an environment of innovation through our world-class test center sets FMC Technologies apart from the competition. Our products are installed in over 100 countries, yet we continue to invest locally by focusing our supply chain in Northwest Pennsylvania. As our growth continues, so do investments to our facility, innovative technologies, and people.

These investments ensure our future in Erie and around the world.

Copyright Š FMC Technologies, Inc. All Rights Reserved.

www.fmctechnologies.com

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Unmatched digital printing and finishing capabilities Printing Concepts has added the HP Indigo 5600 Digital Press and the ESKO i-XE 10 Digital Finishing System to our capabilities. Contact us today to learn about the many advantages and limitless possiblities we can now offer.

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

World Class Technology, Old-Fashioned Quality and Service.

Manufacturing Day (MFG DAY) addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry.

Join with fellow manufacturers across the country in marking the second annual Manufacturing Day on Friday, October 4, 2013.

Hosting an open house provides manufacturers with an opportunity to tell their company’s story, dispel outdated myths about manufacturing, inspire a new generation of manufacturers, and connect with their communities.

In opening your plant to visitors, you can also open minds — expanding knowledge about and improving public perception of careers in manufacturing, as well as showcasing manufacturing’s value to the U.S. economy.

Visit www.mfgday.com to schedule your company’s Manufacturing Day event or to access their easy to use resources.

www.mfgday.com

HR Q&A WE ARE PLANNING TO DO SOME MORE DRILLING WORK IN THE MARCELLUS SHALE PLAY AREA AND NEED TO HIRE A FEW TEMPORARY WORKERS. ARE THERE GUIDELINES FOR HIRING IN THIS CLASSIFICATION?

Many employers have unfounded fears of ”creating” a co-employment relationship with a temporary worker who was hired through a staffing agency, even though it cannot be avoided in many cases (and it doesn’t necessarily impose additional obligations on the employer). There is no single source for information on co-employment, in part because the concept applies differently depending on the relevant law. Also, the term is often used interchangeably with the concept of ”joint employment.”

In most cases where a host company uses temporary workers from a staffing agency, certain co-employment obligations will automatically exist. For example: A temp is protected by the discrimination laws, which includes protection from actions of the host company, even if the staffing agency is the employer of record.

A temporary worker is considered a joint employee for purposes of the Family and Medical Leave Act (FMLA) (see §825.106, Joint employer coverage, noting that ”joint employment will ordinarily be found to exist when a temporary placement agency supplies employees to a second employer”).

Employers cannot take any action to ”avoid creating” a co-employment relationship under these laws

because that relationship is assumed to exist.

WHO IS THE EMPLOYER?

As the employer of record, the staffing agency would be responsible for tax deductions, completing a Form I-9 for new hires, and most other aspects of the employer/employee relationship. Still, any relationship where the host employer exercises some control over the temp, such as directing the day-today tasks that may create a joint or co-employment relationship under certain laws.

Although a temp is officially employed by his or her staffing agency, the host company is usually a joint employer and can face liability for many of the same violations that result in lawsuits from regular employees.

Austin_MBAAds2012v2_Layout 1 6/13/12 8:56 AM Page 2

The Austin Difference

HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE

Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com

22 < www.mbabizmag.com < September 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.

DEPARTMENTS > Contact: Stacey Bruce

Market Pricing and Compensation Data Can Help Improve Your Wage Structures Market pricing is the process of setting wage structures based on gathering, analyzing, and comparing job salary survey data from wages paid in the external market.

Organizations use market pricing to establish pay structures and rates for jobs that are market driven, such as information technology jobs, or to follow market rate changes and then adjust their rates accordingly.

Because of the time, effort, expense and legal ramifications of conducting a compensation survey, many organizations do not have the resources to properly perform one.

Instead, they hire a company that specializes in doing compensation surveys. While this costs money, if a reputable company is hired, the data collection, analysis and final results should be of a much higher quality than an in-house survey.

Always keep the purpose of the survey in mind when judging the accuracy of the survey data.

Participating in a Survey Compensation surveys take months to develop and complete, and the exact length of time depends on the number of companies surveyed, how many positions are included, and the amount of detailed information needed for each position.

Organizations that participate in a survey â&#x20AC;&#x201D; whether by completing it by mail, email or online â&#x20AC;&#x201D; provide their own compensation data and usually receive a percentagediscount off the completed report.

However, if you participate in the Manufacturer & Business Associationâ&#x20AC;&#x2122;s Salary Survey, you receive it at no charge.

survey, as the higher the number of participants, the more valid the results. Itâ&#x20AC;&#x2122;s also important to participate in a survey if it has a key job that you can match to one of your jobs.

For more information about market pricing, or to purchase the Associationâ&#x20AC;&#x2122;s 2013 Regional Wage and Salary Survey, call 814/833-3200 or 800/815-2660, or visit the website www.mbausa.org.

Stacey Bruce, SPHR is the HR director at the Manufacturer & Business Association.

Itâ&#x20AC;&#x2122;s in your companyâ&#x20AC;&#x2122;s best interest to participate in a compensation

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September 2013 > www.mbabizmag.com > 23

Affordable insurance can be hard to find.

Health Care Workers’ Compensation Property Dental Life Home Auto Disability Liability Long-Term Care

Not anymore. At Loesel-Schaaf Insurance, we know just where to look.

Because insurance is our sole focus. And protecting our clients is our highest priority. As one of the region’s largest insurance providers, our comprehensive coverage plans come from the industry’s most respected carriers — providing solid support at rates you can actually afford.

Simply put, we offer more because we have more to offer.

LOESEL-SCHAAF INSURANCE AGENCY, INC. "We make a difference."

Phone: (814) 833-5433 . Fax: (814) 838-6172 . Web site: www.LSinsure.com

OntheHill

DEPARTMENTS > Contact: Lori Joint

Manufacturing Renewal Takes Shape Across Our Region Kathryn Z. Klaber is CEO of the Marcellus Shale Coalition.

The Marcellus Shale Coalition (MSC) is comprised of approximately 300 member companies, each with the same focus: promoting the safe production of natural gas in the Commonwealth and throughout our region, while maximizing the economic, environmental, and energy security benefits of this clean-burning and versatile resource. We represent exploration, production, midstream and local distribution companies, along with a dynamic supply chain comprised of environmental consulting, water management, engineering and manufacturing firms, among others. One of the most exciting parts of our work is being at the heart of Pennsylvania’s manufacturing revival, thanks in part to the safe development in natural gas throughout the state.

putting hundreds of local jobs into jeopardy. It was a major blow to the community. However, thanks to the safe development of job-creating, abundant natural gas, the facility has been repurposed to process ethane and propane — both byproducts of our state’s booming Marcellus Shale industry. Likewise, Philadelphia’s Sunoco refinery has had new life breathed into it, thanks to access to affordable supplies of shale resources.

As a native of Beaver County and a lifetime resident of the Commonwealth, it is gratifying to see the wave of benefits associated with this historic natural gas revolution. Manufacturing towns and refineries are being revitalized. Small- and medium-sized business are opening and expanding. Jobs are being created, energy costs are more affordable for consumers and businesses, and revenue is pouring back into local economies for critical services and infrastructure improvements.

As President Barack Obama said in this year’s State of the Union Address, ”Our first priority is making America a magnet for new jobs and manufacturing.”

While the economic benefits of this renaissance are abundant and apparent, so too are the positive environmental effects. The U.S. Environmental Protection Agency recently reported that the Mid-Atlantic region’s air quality, thanks to expanded natural gas availability and use, is improving markedly. And groundbreaking innovations and advances in technology, along with some of the nation’s strongest regulatory standards, are protecting our water and land in the communities we call home.

Take, for example, the reopening of the Marcus Hook facility in Delaware County, just outside of the city of Philadelphia. Once the pulse of the Delaware Valley, the Marcus Hook refinery was forced to close last year,

Across the state, in western Pennsylvania, the national gas industry’s vibrant and robust supply chain is leading to new manufacturing in steel and essential equipment, with downstream manufacturing in petrochemicals and other industries poised to experience tremendous growth as development continues in the Commonwealth.

Without question, Pennsylvania and the entire region are delivering on this shared goal, which has been made possible by natural gas, a fundamental building block for a strong and sustainable manufacturing sector.

Despite the persistently sluggish national economy, tens of thousands of natural gas-related jobs are being created and preserved among exploration and production operations, midstream and pipeline companies, the supply chain, and into downstream markets. It is quite an exciting time for those of us who live, work, and learn in the area — and our industry is very eager to see what the future holds for this sustainable and transformational resource.

For more information about the MSC and its work, please visit marcelluscoalition.org and Marcellus on Main Street (marcellusonmainstreet.org), an online business directory connecting Pennsylvania businesses with the natural gas industry.

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Events The Manufacturer & Business Association (MBA) recently held its annual Golf Classic Tour at Whispering Woods Golf Club in Erie to benefit three area education programs including Pennsylvania Business Week, the Patrick R. Locco Scholarship Awards and the John P. Tramontano Jr. Education Fund. For complete photo coverage, visit the Photo Gallery on www.mbausa.org.

The 15th annual Golf Classic Tour was sponsored by UPMC Health Plan, represented

by Boo Hagerty (third from left).

Members from the Associationâ&#x20AC;&#x2122;s 27-county membership area enjoy a great day of play at the Whispering Woods Golf Club.

Howard Industries, represented by Gary Schneider (third from left) and his foursome, served as the sign sponsor for the event.

MBA Board of Governors Chairman John Cline (second from left) and guests get ready to tee off.

The day ended with a buffet dinner sponsored by the MBA.

Golfers enjoyed a delicious breakfast courtesy of welcome sponsor Maple Donuts.

Val Laufenberg (right), executive director of Americans for the Competitive Enterprise System (ACES), awards the skills prizes. ACES is responsible for presenting Pennsylvania Business Week, one of three programs that benefits from the golf outing.

September 2013 > www.mbabizmag.com > 27

People Buzz PENNSYLVANIA ELECTRIC MOTOR SERVICE APPOINTS NEW PRESIDENT Pennsylvania Electric Motor Service (PEMS) recently announced the appointment of Peter Sutherland as president.

Prior to his new appointment, Sutherland served as manager of Integrated Power Services in Chicago.

Having earned his bachelor’s and master’s engineering degrees from the University of Wisconsin–Madison, Sutherland is a licensed professional engineer with more than 30 years of experience in industrial electric motors.

Established in 1993, PEMS employs a work force of more than 70 between two locations and serves heavy industry including steel plants, refineries, power plants and transportation.

THE HARTMAN GROUP ADDS TWO The Hartman Group recently added Lori Prestash and Todd Musheno to their team.

Prestash has joined The Hartman Agency in State College as a Commercial Line Client Service Representative.

She will be working with the commercial lines team to provide service to commercial property and casualty clients.

With Pennsylvania Insurance licenses in Accident & Health, Casualty and Allied Lines, Life and Fixed Annuities, Property and Allied Lines, Pretash previously worked as a Commercial Customer Service Representative/ Account Manager, and has achieved the CISR and CWCS designations.

Musheno joins The Hartman Agency as an Account Executive, working in the Williamsport office with the commercial lines team providing service to property and casualty clients.

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A Penn State grad and a native of Williamsport, Musheno previously worked as a Commercial Lines Underwriter at Cincinnati Insurance Company. He has also worked as a Workers’ Compensation Claims Examiner with Sedgwick CMS. With offices in Williamsport, State College and Duncannon, The Hartman Group consists of The Hartman Agency, Inc., Hartman Employee Benefits, Inc., and Hartman Financial Services, offering commercial employee benefit, commercial property and casualty, financial services, and personal lines divisions.

KNOX FIRM ANNOUNCES RECENT ATTORNEY ACHIEVEMENTS Joanna Budde, of Knox McLaughlin Gornall & Sennett, P.C., was recently selected as ”2013 Top Rated Lawyer in Insurance Law” and was appointed to the board of Northwestern Legal Services (NWLS), a private nonprofit organization dedicated to providing free legal representation to low income clients throughout 10 counties.

In being selected as a ”2013 Top Rated Lawyer in Insurance Law” by Martindale-Hubbell, Budde achieved the AV Preeminent peer review rating, the highest rating in legal ability and ethical standards.

A full-time litigator for more than two decades, Budde’s practice focuses on insurance defense, litigation, and civil practice.

ERIEZ NAMES HYDROFLOW ACCOUNT DEVELOPMENT MANAGER Darrell Milton has transferred from the Eriez metals recycling sales team to the newly created position of Account Development Manager for the company’s HydroFlow line.

DEPARTMENTS > Contact: Karen Torres

Milton has been with Eriez since 1991, first serving on the Canadian sales staff, and relocating to Erie in 2006 when he joined the Erie-based International Division.

A world authority in separation technologies, Eriez’s magnetic lift and separation, metal detection, x-ray, materials feeding, screening, conveying and controlling equipment are marketed and manufactured through 12 international facilities located on six continents.

CPA FIRM CARBIS WALKER ANNOUNCES PROMOTIONS Carbis Walker LLP, Certified Public Accountants & Consultants, has announced several promotions: Timothy L. Adams, CPA, a member of the Construction & Real Estate Services Team, and Teah M.Donegan, CPA, a member of the Tax — Construction Team, to manager level.

Joshua K. Donai, CPA, member of the Firm’s Health Care Services Team, to supervisor level.

Michael D. Bryan and Gregory S. Curtis, members of the Manufacturing & Distribution Services Team, and Carl A. Sizer III, a member of the Health Care Services Team, to senior associate level.

Carbis Walker LLP is a member of the Carbis Walker Group. The firm has three offices throughout western Pennsylvania, and specializes in the areas of construction and real estate, health care, manufacturing and distribution, and auto dealership services.

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