Augus t2021
Today, more and more women are taking risks, embracing new opportunities and effecting change in key leadership roles. But, when it comes to the workplace, there is still a long way to go. Join us as we hear from a local difference maker and Fortune 500 company representative on the importance of fostering motivation, team building and talent within your organization that can have a powerful impact on your business and community as a whole. Ann Scott is the community outreach manager for Erie Insurance where she oversees the company’s charitable giving and community outreach, including philanthropy, volunteerism and employee giving. Before assuming her current role with the Erie Insurance Giving Network, she had a long career in human resources, with a focus on diversity and inclusion. In 2012, the Mercy Center for Women named her a “Woman Making History” for her contributions to supporting women and youth in the community. PRESENTED BY:
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BUSINESS
VOL. XXXIV NO. 8 | AUGUST 2021
MAGAZINE
LEGAL BRIEF:
U.S. EPA HAS FLEET OWNERS CHANGING THEIR TUNE
TRUCKING, LOGISTICS FIRM DELIVERS 5TH YEAR OF SUCCESS UNDER NEW OWNERSHIP
SPECIAL SECTION:
MBA MEMBERS MARK MAJOR MILESTONES
Retired U.S. Navy Four-Star Admiral, Commander of U.S. Special Operations (2011-2014) and U.S. Joint Operations (20082011), and Chancellor of University of Texas System (2015-2018). McRaven commanded the troops that captured Saddam Hussein and is credited with developing the plan and leading the Osama bin Laden mission in 2011. He also led one of the nation’s largest and most respected systems of higher education at the University of Texas.
“If you want to change the world, start off by making your bed.”
— Admiral McRaven, 2014 University of Texas Commencement Address
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FEATURES WHAT’S INSIDE | UPDATE
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Turning the Corner Transportation and logistics industry shifts from pandemic to prosperity.
COVER STORY | LOCAL PROFILE
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Lake Erie Transportation Celebrating five years of new ownership, company officials share LET’s secret to success as a comprehensive provider of regional asset-based trucking, third-party North American logistics and expedite, heavy duty truck maintenance, and crossdock warehouse services.
SPOTLIGHT Q&A | WORTH NOTING
9 DEPARTMENTS 12
BUSINESS BUZZ
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PEOPLE BUZZ
WHAT’S NEW
EVENTS 21 NETWORKING AND MORE
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HR CONNECTION
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HR Q&A
EDITORIAL
Learn about MBA members celebrating milestone anniversaries in the region!
LEGAL BRIEF | TRUCKING
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AWARDS AND PROMOTIONS
READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
WORKPLACE TRENDS
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Contributing Writers Sarah Fetchko Robert Gandley Carl A. Marrara Rachel Tserkovniak
Feature Photography R. Frank Media Addtional Photography iStockphoto.com Design, Production & Printing Printing Concepts Inc. printcon@erie.net
U.S. EPA has fleet owners changing their tune. Robert Gandley
ON THE HILL | LEGISLATIVE SESSION
GET ANSWERS
Executive Editor Karen Torres ktorres@mbausa.org
Bryan Barnhart, president and CEO of Barnhart Transportation in North East, Pennsylvania, discusses the opening of the new Route 20 Tank Wash and the growing demand for its services.
A look at the three R’s: RGGI, regulations and redistricting Carl A. Marrara
Advertising Sales Frank Mehler 814/833-3200 fmehler@mbausa.org David Thornburg 814/833-3200 dthornburg@mbausa.org
On the Cover: Lake Erie Transportation is marking its fifth year of new ownership and a rich history of providing trucking and logistics services to the tri-state region. Shown here at the company’s headquarters at 3025 West 17th Street in Erie, Pennsylvania are the company’s leadership team including Denton Sauers, Chuck Sites, Tina Sites and Adam Gaton. For full story, see page 4. Mission Statement: The Manufacturer & Business
Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors
Manufacturer & Business Association Headquarters: 2171 West 38th Street Erie, PA. 16508 Pittsburgh: 600 Cranberry Woods Drive, Suite 190 Cranberry Township, PA 16066 814/833-3200 |800/815-2660 | www.mbausa.org
© Copyright 2021 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
mbabizmag.com • AUGUST 2021
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WHAT’S INSIDE | UPDATE
Turning the Corner
TRANSPORTATION AND LOGISTICS INDUSTRY SHIFTS FROM PANDEMIC TO PROSPERITY The transportation and logistics industry is not only among the most competitive and in-demand business sectors today, but it is also helping pave the way for prosperity in a post-pandemic era.
As the country continues to turn the corner on the pandemic, consumer spending is expected to further power increases in freight demand. According to Research & Markets, the North America freight and logistics market is anticipated to register a growth rate of 3 percent during the period (2021-2026). In fact, as the economy continues to gain steam, trucking companies are facing even more pressure to hire and retain drivers to meet the growing demand from shippers. According to experts, there are some key areas to watch for the transportation and logistics industry in 2021: • Rising air freight rates, dwindling warehouse space and clogged cargo terminal arteries are among the challenges facing North American shippers. • The widening of the Panama Canal and the expansion of regional industrial activities are amplifying volumes in the southeastern United States. • Rail and intermodal services are booming. Large fleet owners also are investing heavily in new
trucks, which is driving associated supply chains. • Competition is fierce among the North American ports. The U.S. ports are straining under increasing tonnage and, in some cases, the inability to service mega-ships. • Consumers continue to lean into online shopping, and have created a need for businesses to improve their last-mile services. Because of this shift, many companies are augmenting their last-mile offerings and contemplate fresh approaches to client services and corporate partnerships. • Technology continues to modernize the industry, as shippers and carriers realize that there are a number of promising technologies that can deliver significant returns on investments.
including Lake Erie Transportation. The company has a rich history in the Erie area and is marking five years under new ownership. In addition, we’ll hear from other operations about investments in the region, such as Barnhart Transportation’s new Route 20 Tank Wash in North East, as well as the newly renamed Wavepoint 3PL (formerly Roberts Trucking). Plus, we’ll share an exciting recognition for MBA logistics partner Logistics Plus, and timely information on the U.S. EPA’s crackdown against both vehicle tampering and the installation of “defeat devices.” We hope you enjoy this month’s issue and learn some more about this exciting industry and how it can help your operation in the long term!
In this edition of the MBA Business Magazine, we’ll highlight some of the companies that are fueling the continued growth in transportation and logistics,
FUELING GROWTH!
mbabizmag.com • AUGUST 2021
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COVER STORY | LOCAL PROFILE
Lake Erie Transportation, headquartered at 3025 West 17th Street in Erie, Pennsylvania, is a comprehensive provider of regional asset-based trucking, thirdparty North American logistics and expedite, heavy duty truck maintenance, and crossdock warehouse services. Shown here are the company’s leadership team (from left): Director of Business Development Denton Sauers, President and CEO Chuck Sites, Director of Operations Tina Sites and Vice President Adam Gaton.
Trucking, Logistics Firm Delivers 5th Year of Success Under New Ownership Chuck Sites knows the importance of going the extra mile. As president and chief executive officer of Erie, Pennsylvaniabased Lake Erie Transportation (LET) — the parent company of Lake Erie Trucking, Lake Erie Crossdock and Lake Erie Logistics — Sites and his team have navigated new ownership and the challenges of the COVID pandemic, and achieved operational success, marking a historic revenue year in 2021. In fact, Lake Erie Transportation, LLC’s journey has been 50-plus years in the making. Its division Lake Erie Trucking is one of the oldest locally owned trucking companies in the Erie region started by Erie businessman Joe Benacci and his late uncle. The business would operate from 1967 till 1998 when Benacci would buy Dodsworth Trucking and go on to form Lake Erie Logistics in 2004 when an enthusiastic Sites joined his team. In 2016, Sites and partners bought Lake Erie Logistics. They then revived the name Lake Erie Trucking in 2017, paving the way for Lake Erie Transportation to begin operating the following year. “Our fifth year of ownership is a big accomplishment for us in that we’re carrying on the company name. We’re carrying on the trucking company that was started by the Benacci family many years ago,” Sites explains. “For us, it’s about a renewal of the company and taking it to the next generation.” With more than 30 years of industry experience, Sites certainly has the knowledge, experience and team to guide it. The Pittsburgh native grew up in the trucking industry where his father worked in small parcel delivery, often joining him on routes as a kid. Sites’ first jobs were delivering freight, and he even continued to hold down a delivery job while he
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majored in transportation management at Robert Morris. “That’s basically the way I worked my way through college,” he says. After working for several transportation firms in the Pittsburgh area, Sites eventually met Benacci through a mutual friend. Benacci, then owner of TWL, had purchased Dodsworth Trucking and needed an expert for his less-thantruckload (LTL) operation, recruiting Sites to join his team. On July 5, 2004, Sites became a minority partner in then Lake Erie Logistics (doing business as Dodsworth) — which turned out to be one of the best moves of his career. During his tenure, Sites served as vice president of Operations, gaining valuable leadership experience that would help him strike out to form Lake Erie Transportation years later. “I have a lot of respect for Joe Benacci, and I want to recognize that,” Sites says. “Without him, we wouldn’t be here.” Chuck Sites is the president and CEO of Lake Erie Transportation.
Lake Erie Crossdock provides short-term crossdocking and warehousing solutions for customers facing challenges of available floor space, overtime or freight surges.
Director of Business Development Denton Sauers checks on a shipment in the logistics department. Lake Erie Logistics, the third-party division of Lake Erie Transportation, specializes in ground expedite and nationwide logistic solutions.
Today, Lake Erie Transportation, which employs a team of 55 fulltime and part-time employees at its nearly 40,000-square-foot headquarters, warehouse and truck terminal on West 17th Street, is a comprehensive trucking and logistics company providing services to various parts of the supply chain world. Its operation consists of assetbased trucking and maintenance operation Lake Erie Trucking; shortterm crossdocking and warehousing business Lake Erie Crossdock; and, its third-party division, Lake Erie Logistics, which specializes in ground expedite and nationwide logistics solutions.
That focus on success has always helped drive the company, but even more so throughout the COVID pandemic when Lake Erie Trucking launched its new Home Delivery (HD) Service in March 2020. The idea was to help meet the needs of small businesses and individuals that do not have large facilities equipped with loading docks and forklifts and provide shipping options for individuals who buy and sell items on online marketplaces.
“Whether it is one skid or a truckload of freight, LET’s dedicated group of drivers and management strive to exceed customer expectations and provide on-time services,” Sites says. “First and foremost, we’ve been able to tailor things directly toward our customers.”
any shipping need — from tractor-trailers and flatbeds, to box trucks with liftgates, as well as other smaller units such as 16-feet flatbeds and cargo vans. The company recently made some major investments in its fleet, which has grown to 15 day-cab tractors, 15 straight trucks (between 24 and 26 feet boxes with liftgates), and approximately 50 trailers.
“First mile and last mile is essentially getting to people’s houses, so one thing that COVID did was create a massive need for home delivery Lake Erie Trucking — the largest portion of its business — operates and home pickups,” Sites explains. “So, in March 2020, we were able to 18 to 20 hours a day, five days a week, operating within a 140-mile capitalize on some work for other trucking companies and deliver to radius from Erie to Pittsburgh in people’s houses. Over the last year, Pennsylvania, Buffalo to Jamestown “Our fifth year of ownership is a big accomplishment we’ve seen a huge increase of momin New York and west to Cleveland, for us in that we’re carrying on the company name. and-pop businesses that have two Ohio. The company provides a wide people that are operating outside of We’re carrying on the trucking company that was range of services for transportation their shed or garage. We’ve also had started by the Benacci family many years ago. For us, commodity freight including lessmore need of picking up at big-box it’s about a renewal of the company and taking it to than-truckload, full truckload and stores and construction sites, and temp-controlled services as well as the next generation.” — Chuck Sites there’s a lot of opportunity for that in hot-shot trucking for smaller, timethe future.” sensitive loads. LET’s HD Service has a variety of vehicles that can accommodate
John Miller, a sourcing specialist for Graco High Pressure Equipment in Erie, can attest to Lake Erie Transportation’s customer support. The machining manufacturer has used Lake Erie Trucking for various services, and Miller has personally used Lake Erie Trucking for hotshot/time-critical pickups and deliveries, local pickups and deliveries, as well as pickups and deliveries in the tri-state area. Lake Erie Trucking also has partnered with other trucking companies outside of its daily tri-state areas to help Graco High Pressure Equipment meet vendor/ customer needs.
To keep the trucks on the road, Lake Erie Trucking provides heavyduty diesel maintenance and repair for its own fleet as well as outside customers. The company’s mechanics and technicians offer >
“LET’s customer service, attention to detail and amazing track record of coming through for us speaks for itself on a daily basis,” states Miller. “They go out of their way to meet our demanding schedule for deliveries and pickups and have a genuine interest in helping us succeed.”
Lake Erie Transportation is a comprehensive trucking and logistics company headquartered in Erie, Pennsylvania and the parent company of Lake Erie Trucking, Lake Erie Logistics and Lake Erie Crossdock. Through the three divisions, Lake Erie Transportation provides regional asset-based trucking, third-party North American logistics and expedite, heavy duty truck maintenance, and crossdock warehouse services. Headquarters: 3025 West 17th Street Erie, PA 16505 Website: lel-erie.com Phone: 814/825-9891 Lake Erie Transportation has a sprawling headquarters, warehousing facility and truck terminal on West 17th Street. The company has extended its lease through 2031.
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Lake Erie Transportation prides itself in its dedicated workforce. Many of the company’s team members have been promoted from within, enabling LET to retain top talent.
Where People Make the Difference
Lake Erie Transportation has the size and flexibility to fulfill customers’ needs, but it also has the team to back it up — and it is one of the most gender diverse management teams within the trucking industry. Tina Sites is the company’s director of Operations, and also on the team are Logistics Ops Manager Shannon Brooks and Controller Jennifer Decker. “For the size of our transportation company,” says Sites, “we have a lot of female managers, which is fantastic.”
a wide variety of services from state inspections to complete truckrebuild capabilities. “We specialize in working on pre-emissions vehicles, any kind of diesel, non-diesel vehicles, and we can do inspections as well,” says Sites. “We have a great group of mechanics.”
Additional Services and Support
Complementing its asset-based division and maintenance services is Lake Erie Logistics, LLC (LEL), which operates 24 hours a day, seven days a week. The company, which began operating as a third-party division of LET in 2007, specializes in ground expedite and nationwide logistic solutions. Lake Erie Logistics provides an all-around customer solution to move freight throughout the United States and parts of Canada.
LET’s people are certainly what Sites believes drives the company to be successful. Many of his team members are from western Pennsylvania and most have been promoted from within, enabling the company to retain top talent. Tina Sites, for one, is a graduate of the Bradford Business School and began her career at Lake Erie Transportation as a clerk. Director of Business Development Denton Sauers, a graduate of Gannon University, and Vice President Adam Gaton, a graduate of Penn State Behrend, both began their careers at Lake Erie Transportation as interns. “We don’t have a lot of turnover as opposed to other companies, and we’ve been able to grow our people and that’s what’s really helped us,” says Sites. It’s this approach that is also helping Lake Erie Transportation address one of the biggest challenges of the U.S. trucking industry — a major driver shortage that the American Trucking Associations estimates could rise to more than 160,000 by 2028. “We have a driver training program where someone can come and start working on the dock and then move up to a straight truck and then move into tractor-trailers,” says Sites. “If you can get people who are talented, get them in, and give them a path to succeed, it works. We know because it has driven us.”
“It’s basically direct freight that has to go on dedicated routes that can’t be on planes, for example,” explains Sites. “We aren’t a clearinghouse or broker, but we do provide the transportation end of it. We focus on what we do best, which is expedited cargo van, straight truck and overthe-road truckload.”
According to Sites, competitive wages and technology are also critical to attracting younger drivers to a mature industry. During COVID, Lake Erie Transportation increased its wages for its front-line team, and it also has adopted new technologies to improve both driver and customer experiences.
An additional benefit of working with Lake Erie Transportation is its short-term crossdocking and warehousing solutions available through Lake Erie Crossdock. Crossdock services involve unloading products/ goods from a truck or container directly onto another truck for delivery. Items are not put away but merely staged near dock doors to await loading. Therefore, there is little to no storage, and turnaround time between receipt and shipment is usually less than 24 hours.
“Our drivers don’t have to do paper logging anymore,” says Sites. “We have GPS and onboard systems for our trucks, and we can basically dispatch our freight through phone apps. Even from the aspect of being able to drop freight off and take a picture of it to use as a delivery sheet, it’s so much better.”
Lake Erie Crossdock’s operation began in 2013 when then-General Electric (now Wabtec) opened its Texas plant and was looking to consolidate freight shipped to its Erie facility and different buildings within the plant. “Rather than have multiple trucks coming in, they were able to reduce traffic flow, so they came to us and we built the system from scratch,” Sites says. For customers challenged with floor space, overtime or freight surges, crossdocking services are an ideal solution for shipping and receiving. Lake Erie Crossdock also has the added support of Lake Erie Trucking and Lake Erie Logistics if needed.
Driving Success
With the right investments and manpower, Lake Erie Transportation appears to be headed in the right direction. The company has navigated the challenges of the COVID crisis, but has kept its focus on the road ahead. The company has added new services, such as HD, and invested in its fleet and people. “We’re very proud of our history and how far the company has come in the last five years,” says Sites. “As a team, we’re looking forward to a bright future.”
“For many customers, we can be that one-stop shop for them,” says Sites. “We’re able to bring freight in. We’re able to be their receiving in their shipping operation and be an extension of who they are.”
Lake Erie Trucking has a large fleet to handle a variety of transportation commodity freight including less-thantruckload, full truckload, and temp-controlled services as well as hot-shot trucking for smaller, time-sensitive loads, as well as its new Home Delivery (HD) Service.
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AUGUST 2021 • mbabizmag.com
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BidURenergy, Inc. is a wholly owned subsidiary of NRG Energy, Inc. © 2020 NRG Energy, Inc. All rights reserved. 456480665 BidURenergy, Inc. is a wholly owned subsidiary of NRG Energy, Inc. © 2020 NRG Energy, Inc. All rights reserved. 456480665
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AUGUST 2021 • mbabizmag.com
SPOTLIGHT Q&A| WORTH NOTING
New Route 20 Tank Wash Increases Visibility of NWPA Transportation Industry The transportation industry is vitally important to the global and American economy, especially when it comes to the highly specialized area of transporting food grade liquid bulk and liquid bulk freight. Here, Bryan Barnhart, president and CEO of Barnhart Transportation in North East, Pennsylvania, discusses the opening of the new Route 20 Tank Wash and the growing demand for its services. The Route 20 Tank Wash opened this spring. Tell us about the need to open this tank wash and the types of services it provides. Two years ago, we saw significant growth in our liquid division and with growth comes challenges. We were constantly challenged to find commercial wash services that did not cut into the productivity and efficiency of the liquid division fleet and drivers. In Northwestern PA, the closest proximity to these services is a 100-mile drive to Niagara Falls, Pittsburgh or Cleveland. To provide a bit of background, a liquid tank trailer requires a wash before it can be loaded with another load of product. Depending on what the tank trailer hauled and what the next load is will determine the type of wash out needed. There are several guidelines that stipulate the agents used as well as temperatures needed to be attained before picking up its next load. So, you can see how that can present a challenge for our dispatch team to plan for in their routing of their respective trucks that they are responsible for. We knew if we were facing these challenges other transportation companies had to be as well. That’s why we decided to make the investment
not only to support our liquid fleet operations, but also service the local food and wine producers and the liquid by-product industry. Who will be able to utilize the new tank wash? Route 20 Tank Wash is open to the public for all food grade and nonhazardous commercial trailer wash cleanings. The facility primarily services the liquid and pneumatic transportation industry. The Route 20 Tank Wash recently earned the Juice Products Association certification and is working on to becoming Kosher certified as well. Tell us more about the importance of these certifications. The food grade facility is both Juice Products Association and Kosher certified. Our staff has all been trained on the specifications of both processes to ensure the integrity of each cleaning process. Having a tank wash facility that holds these certifications in the NWPA region provides value to local business that not only have to pay the wash fees at other facilities outside the area but are also having to absorb the cost of the extra miles that this adds to the routing of the lane that their transportation
partner has to account for in the rate quoted. How valuable is having a tank wash like this in northwest Pennsylvania, especially right off Interstate 90? With Interstate 90 being one of the nation’s longest highways puts our facility at a perfect location to attract the thru freight traffic that is in enroute to or from a pickup or delivery. Our facility also offers brand new complimentary amenities like showers and restrooms, laundry facilities so drivers can take care of their personal needs while they wait. When we were designing this project, we tried to put the truck driver at the center of the process. Our goal was to add efficiencies to the entire wash process. How can our readers learn more about the Route 20 Tank Wash and Barnhart Transportation? For more information about Route 20 Tank Wash, LLC, call 814/347-5254 Ext. 120 or visit www.route20tankwash.com. For more information about Barnhart Transportation, LLC, call 814/347-5254 or visit www.barnhart-trans.com.
mbabizmag.com • AUGUST 2021
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MAKING A DIFFERENCE DIVERSE PRODUCTS AND SERVICES For more than 97 years, Loesel-Schaaf Insurance Agency, Inc. has been an independent multi-line insurance agency, offering a wide array of products and services. Growing to four separate divisions, encompassing just about every insurance need possible, the Agency has become one of the largest “one-stop shops” for businesses and individuals across the tri-state area and beyond. “Having a professional staff averaging 25 years of insurance industry experience, we effectively solve problems for our clients,” says Doug Loesel, President. “We have a vast reservoir of knowledge from which to draw and a team approach is often utilized. Someone on staff has most likely tackled just about any challenge and together we can find a solution.” Because circumstances change, Loesel-Schaaf offers a complimentary review of policies, personal or business, to ensure adequate protection.
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AUGUST 2021 • mbabizmag.com
7/9/21 4:09 PM
U.S. EPA Has Fleet Owners Changing Their Tune
LEGAL BRIEF | TRUCKING
USEPA estimates over 500,000 pickup trucks have been subject to tampering (as well as a very large number of other diesel vehicles), you can see that the scope of the excess emissions involved is significant.
Robert Gandley is a partner at MacDonald Illig. He is chair of the Firm’s Environmental & Energy Group and concentrates his practice in the areas of regulatory compliance and permitting.
multibillion-dollar civil penalties as well as criminal charges. Similar enforcement activities are now occurring on a smaller scale involving numerous companies who manufacture, distribute or install defeat devices or tuning software to retune diesel engines as well as owners of fleets of diesel vehicles that have had trucks retuned and defeat devices installed.
Owners of fleets of diesel trucks and equipment should be aware of the ongoing U.S. Environmental Protection Agency (USEPA) crackdown against both vehicle tampering and the installation of “defeat devices.” (See 42 U.S.C.§§ 7522(a) (3)(A)&(B) for laws prohibiting tampering with engine components or selling, offering to sell or installing any part or component where the principal effect is to bypass or render inoperative any emission control device on an engine.)
It is important to understand the background of the rise in defeat devices. As diesel pollution control equipment became more complicated and expensive, truck owners began frequently removing or deactivating pollution control equipment rather than maintaining or replacing it. In an effort to curb these activities, manufacturers now have installed computerized software in diesel vehicles that monitor various operating parameters and automatically derate or shut down a diesel engine that operates outside of design parameters.
Most everyone is familiar with the large automaker emissions cheating scandal involving Volkswagen several years ago where their diesel vehicles had computer software designed to allow them to pass emissions tests, but operate at higher emissions levels during normal driving to improve performance and/or fuel economy. The Volkswagen case led to
As a result, truck owners are now also having trucks illegally retuned to enable them to continue running when certain parameters are outside of the factory design settings. USEPA estimates that a vehicle that has been altered can produce emissions 30-40 times higher than a newly certified compliant vehicle. When you combine this with the fact that
USEPA recently has ramped up efforts to pursue violators of the vehicle emissions regulatory standards through a National Compliance Initiative. Enforcement actions have been pursued against a variety of entities including the manufacturers/sellers of defeat devices, the providers of illegal tuning services, and the owners of illegally modified trucks. Generally, as a part of an enforcement action against any of these entities, one of USEPA’s tactics has been to submit information requests to the target asking for all information that will lead to customers or suppliers/providers who were also involved in the emissions tampering. This has led to USEPA having successful enforcement actions against a variety of entities. It is important for fleet owners to know that in any enforcement action, they are likely to face civil penalties (with stated penalties in the range of $5,000 per unit and some reductions available for defendants entering into voluntary settlement agreements). Enforcement also includes orders to document the prompt restoration of all equipment back to factory emission equipment and retuning to factory settings. In addition to the penalties and the even higher expense of repairs and business disruption, individuals involved in tampering also face the prospect of potential criminal enforcement. One employee of a fleet operator in Pennsylvania was sentenced to six months in prison for altering 30 heavy-duty diesel trucks in their fleet. USEPA now has databases of suspect equipment, expedited investigation and settlement tools, staff expertise and other items in place to enable accelerated enforcement of tampering cases at least through the 2023 expiration of their ongoing National Compliance Initiative. For more information, contact Robert Gandley at 814/870-7661 or rgandley@mijb.com. mbabizmag.com • AUGUST 2021
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BUSINESS BUZZ | WHAT’S NEW LOGISTICS PLUS EARNS TOP SUPPLY CHAIN PROJECTS AWARD FOR 2021
Logistics Plus Inc. (LP), a leading worldwide provider of transportation, logistics, and supply chain solutions, was selected by Supply & Demand Chain Executive, an industry-leading publication covering the entire global supply chain, as a recipient of the Top Supply Chain Projects Award for 2021. This is the third consecutive year and the fifth time in the past six years that Logistics Plus has been honored for managing a top global supply chain project. The Top Supply Chain Projects Award (formerly known as the SDCE 100) spotlights successful and innovative transformation projects that deliver bottom-line value to small, medium, and large enterprises across various supply chain functions. These projects show how supply chain solution and service providers help their customers and clients achieve supply chain excellence and prepare their supply chains for success. The supply chain project submitted by Logistics Plus that earned this year’s recognition was an optimized load planning solution for a client in the industrial glove industry. The client received a large purchase order for 27 containers of product from a major big-box retailer via an Excel file that consisted of hundreds of lines and dozens of columns. Due to the complexity of the file, the client needed assistance building a load plan that would optimize container space for shipping. The Logistics Plus team used 3-D modeling software to build visual load plans and then filled the empty spaces with additional products to fully optimize the containers. As a result, Logistics Plus was able to identify 25 open pallet positions, which increased the client’s purchase order by $250,000. Logistics Plus also handled the Free on Board (FOB) transportation of the goods. For more information, visit www.logisticsplus.com.
NORTHWEST BANK CELEBRATES GRAND REOPENING OF SUMMIT SQUARE OFFICE
Officials of Northwest Bank, along with community representatives, cut the ceremonial ribbon to celebrate the grand reopening of the bank’s Summit Square office at 1945 Douglas Parkway. Joining the Northwest team for the ribbon cutting on June 3 were many of the bank’s community partners, including Summit Township Supervisors Tony Davis and Mark Welka; Colleen Gross, Doug Massey and Kathy Harrington, representing the Erie Regional Chamber & Growth Partnership; and Superintendent Rick Emerick and Assistant Superintendent Sean Wolfrom, Ph.D., of the Fort LeBoeuf School District. Led by Office Manager Jessica Garrity and her team of bankers, Northwest’s full-service location provides access to an array of products and services, including personal and business banking, loans, investment management, trust and retirement plan services. Northwest Bancshares, Inc. is the holding company of Northwest Bank, which is headquartered in Warren, Pennsylvania. For more information, visit www.northwest.bank.
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Logistics Plus, headquartered in Erie, Pennsylvania, is a 21st-century logistics company that provides freight transportation, warehousing, fulfillment, global logistics, business intelligence, and supply chain management solutions.
ROBERTS TRUCKING AND AFFILIATE COMPANIES ANNOUNCE NAME CHANGE TO WAVEPOINT 3PL
Effective since June, Roberts Trucking and its sister companies, Roberts Logistics Service, Roberts Warehousing, MooreHill Logistics, Print Media Logistic Solutions and Rise Logistics, will operate as wholly-owned subsidiaries of Wavepoint 3PL. Headquartered in North East, Pennsylvania, Wavepoint 3PL provides cost-effective, flexible logistic services for today’s customers seeking increasingly personalized and streamlined solutions. This is the latest evolution for Roberts Trucking, which was founded in 1978 and which has added businesses to its organization through the years. “We’ve reached a new milestone and are moving all of the companies into a high performing, single source 3PL. With these enhanced synergies, we will continue to expand from a powerful regional presence to a national organization, while enhancing our supply chain solutions from our 3PL mindset,” said Kirk Hill, president of Wavepoint 3PL. “Ultimately, this new organization and system is designed to deliver operational and cost efficiencies to all of our customers in a broad range of industries.” Accompanying the restructuring is a new entrepreneurial leadership team and an expansion of current operations. Wavepoint 3PL is adding to its truck fleet, expanding transportation brokerage services and plans to build warehouse capacity to 2 million square feet, according to Hill. Already, the company has invested in some of the latest technologies to best manage product flow for its customers around the country. The new Wavepoint 3PL works with a variety of mission-critical supply chains from small to mid-sized to large manufacturers and distributors, spanning CPG food and beverage, food processing raw materials, food packaging,
over-the-counter pharmaceuticals, health and beauty, technology and ultra-clean manufacturing components. For more information, visit www.wavepoint3PL.com.
PROCHEMTECH INTERNATIONAL ANNOUNCES EXPANSION COMPLETION
ProChemTech International, Inc. recently announced that it has completed an expansion of its Chemical Plant No. 1 located in Brockway, Pennsylvania. The expansion added 4,000 square feet of a steel framed high bay with totally contained truck dock capable of handling a tanker and tractor trailer at once and a 400-square-foot code compliant boiler room. The old plant process boiler was also replaced with a new, high-efficiency boiler. The increased floor space will be utilized for raw material and finished product storage. Future plans include relocation of the silicate production line from its current location into a contained area within the expansion. Financing was via the Clarion County Community bank with W&W and Sons of St. Marys as the general contractor. Total project cost exceeded $600,000. ProChemTech has its main office, laboratory, and equipment and chemical manufacturing facility located in Brockway and a second chemical manufacturing facility and service center located in Apache Junction, Arizona. The company specializes in innovative equipment, systems, and equipment for management of boiler, cooling, process, and waste waters for industrial and commercial customers. Key technologies include patented processes for reducing cooling tower water use and eliminating use of toxic chemical biocides. For more information, visit www.prochemtech.com.
PEOPLE BUZZ | AWARDS AND PROMOTIONS RAYMOND JAMES’ SPANOS EARNS TOP SPOT ON 2021 BEST IN STATE WEALTH ADVISOR LIST
For a fourth consecutive year, Samuel Spanos has earned recognition from Forbes Magazine and was named No. 1 for the state of Pennsylvania on the 2021 Best In State Wealth Advisor list.
Spanos is a senior vice president of Investments and managing director for Raymond James & Associates in Beaver, Pennsylvania. He earned a bachelor’s degree in business administration and accounting from Duquesne University. Spanos is a member of the Advisory Board of the Rochester, Pennsylvania Corps of the Salvation Army and has served on the Board of Directors of the McGuire Memorial Foundation, Sewickley Valley Historical Society and the Board of Directors of Habitat for Humanity of Beaver County. The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisers that are considered have a minimum of seven years’ experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Out of approximately 32,725 nominations received, based on thresholds, more than 5,000 advisers received the award. Portfolio performance is not a criteria due to varying client objectives and lack of audited data.
ACE WIRE SPRING & FORM FOREMAN RECOGNIZED FOR BOTSIQ SERVICE
Ace Wire Spring & Form Co, Inc., located in McKees Rocks, Pennsylvania, recently recognized Secondary Foreman Mike “Crowbar” Valoski for his contributions and service as a referee and volunteer for the BotsIQ of PA for almost 15 years. Valoski joined Ace Wire Spring & Form more than four years ago. He has more than 15 years of experience in the process engineering and workforce development fields. His previous positions include plant engineer at Rolf Glass, Mechatronics instructor at Parkway West CTC, program manager for BotsIQ of PA and Mechatronics Research Lab manager at the National Center for Robotics Engineering Technology Education. Valoski looks forward to the preliminary Southwestern Pennsylvania BotsIQ contest. He
assists with the competition by helping students of robotics teams understand what they need to do while following the guidelines and rules set up for robot design requirements, as well as safety of the students. He is known for carrying around his crowbar at local BotsIQ events, using it to clean up the battle arenas and assisting with the removal of battered and beaten robots. Ace Wire Spring & Form also is a sponsor of the Clairton High School BotsIQ team. Each winter, the team visits the company and gets a tour by Valoski. BotsIQ, known as the smart sport, is a manufacturer workforce development program with the goal to provide a pathway for high school students to learn about rewarding careers in manufacturing. Ace Wire Spring & Form is a precision spring manufacturer and an industry leader in the production of compression springs, extension springs, torsion springs, specialty springs, and wire forms.
KNOX LAW FIRM WELCOMES TWO NEW ASSOCIATES
McLaughlin Gornall & Sennett, P.C. (Knox Law) recently welcomed two new associates, Matthew W. Lasher and Ashley M. Mulryan. Lasher will concentrate his practice on labor & employment law. He graduated from The Pennsylvania State University and University of Richmond School of Law, where he was assistant symposium editor for the University of Richmond Law Review and served on the Student Bar Association. He is active in nonprofit and community organizations including Catholic Charities, NAMI and Young Erie Professionals. Mulryan will focus her practice on Bankruptcy, Creditors’ Rights and business reorganization. She is a cum laude graduate of Allegheny College and earned her J.D. from Case Western Reserve University School of Law, where she received the Marvin and Sue Sicherman Excellence in Bankruptcy Award and participated in the Bankruptcy Moot Court Team, among other activities. She also served as a Certified Legal Intern for the Case Western Community Development Clinic. Her legal experience includes a judicial externship for Judge Harris of the Northern District of Ohio Bankruptcy Court and two summers clerking for Knox Law.
THE ERIE COMMUNITY FOUNDATION NAMES NEW PRESIDENT
The Erie Community Foundation (ECF) has named Karen Bilowith as its new president, the Board of Trustees recently announced.
Bilowith is currently the president and chief executive officer of the Idaho Community Foundation, which is a statewide public charitable foundation. Previously, she held the same position for the Community Foundation for the Greater Capital Region in Albany, New York. She also worked in an executive position with United Way of the Greater Capital Region also in upstate New York. In 2020, she was recognized as a CEO of Influence by the Idaho Business Review and, in June 2013, received the Key4Women Achieve Award. Bilowith holds a master’s degree in public administration from the University of Colorado and a bachelor’s degree in economics from Boston College. She will start at ECF on October 1, 2021. ECF Vice President of Philanthropic Services Susannah Weis Frigon will continue to serve as interim president until then. Prior to joining the Foundation in 2013, Weis Frigon spent 24 years in the financial services industry, holding leadership positions in Chicago, Rochester, New York and Pittsburgh. Former ECF President Mike Batchelor had extended his December 2020 retirement due to the search for the new president pausing for the COVID-19 pandemic. Batchelor is now the president of the Pennsylvania Association of Community Foundations, a membership-based organization of 31 community foundations in the state. The mission of The Erie Community Foundation is to improve the quality of life for all in the region by evaluating and addressing community issues, by building permanent charitable endowments and by promoting philanthropic and community leadership. ECF’s annual Erie Gives Day is August 10, 2021.
At Knox Law, Lasher and Mulryan join a team of more than 40 attorneys that has been providing legal services to businesses, governmental entities, nonprofit organizations, insurance companies, financial institutions, individuals and families for over 60 years.
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AUTO GLASS
ON THE HILL | LEGISLATIVE SESSION
A Look at the Three R’s: RGGI, Regulations and Redistricting Carl A. Marrara is the vice president of Government Affairs at the Pennsylvania Manufacturers’ Association. For more information, visit www.pamanufacturers.org. Five months ago, Governor Wolf proposed a 50-percent personal income tax increase, an almost doubling of the state minimum wage, another tax on natural gas production, mandatory unitary combined reporting and other uncompetitive ideas. The General Assembly pushed back and awaited promised state assistance from the federal government before proposing a plan. The $7.2 billion from the feds is not recurring and ought to be used on one-time expenditures that create jobs and economic activity that will then lead to private sector activity for enhanced tax collections for years to come. The use of federal stimulus dollars for recurring expenditures will cause issues in budget cycles in two years when those dollars are no longer available. As Governor Wolf prepares for his final year in office, expect the boundaries of executive order to be pushed. The General Assembly has shown no signs of enacting items that have been themes throughout his seven years in office. The fall legislative session will likely be focused on “three R’s:” the Regional
Greenhouse Gas Initiative (RGGI), Regulations and Redistricting. The General Assembly acted on the RGGI cap-and-tax scheme being entered into unilaterally by Governor Wolf and the Department of Environmental Protection. Senate Bill 119 (Senator Joe Pittman) and House Bill 637 (Representative Jim Struzzi) are the first attempts to enact policy that would give the General Assembly the means intended to control, or limit carbon dioxide emissions by imposing a revenue-generating tax or fee on carbon dioxide emissions. Several experts believe that Governor Wolf lacks the authority to impose this tax, since taxing authority is the duty of the General Assembly as defined by the Pennsylvania Constitution. There is no expressed power that allows for a governor to unilaterally enter into a multistate accord. To solidify this separation of powers, this legislation is a first-step to ensure the General Assembly has its seat at the table and the first of many votes to combat RGGI. On broader regulatory reform, the pandemic has inspired new momentum when many rules were temporarily suspended by executive order via emergency declaration. An overview of the impact of these changes is needed. As a remedy, Representative Kate Klunk and Senator Kristin Phillips-Hill have legislation establishing the “Office of the Repealer.” Klunk stated, “At the start of the pandemic, the Wolf administration suspended numerous regulations to
improve the flow of goods to residents. This clearly shows businesses and residents can act safely and responsibly without some of the more than 153,000 regulations currently on the books. If we can do without certain regulations during the time of a crisis, surely we can do it during more normal times.” Other proposed regulatory reform measures are in the midst of the legislative process. Excess regulation has been a focus of both chambers in restarting Pennsylvania’s economy coming off the damage done by pandemic mitigation efforts. On redistricting, Pennsylvania will lose one congressional seat. The 17 remaining districts will draw national attention as the possible difference-maker in control of the U.S. House of Representatives. Also up for reapportionment are the 50 PA Senate and 203 PA House Districts. Navigating redistricting will be a study in political science since the PA Supreme Court redrew previously approved maps in 2018. How the newly untested powers of the courts will interplay with the proceedings of the General Assembly, as the U.S. Constitution charges, will be a constitutional law case study. Other topics will include elections improvements, corporate and small business tax competitiveness and lawsuit abuse reforms. To stay current on state government, rely on the analysis provided by the MBA and its allies including the Pennsylvania Manufacturers’ Association at www.pamanufacturers.org.
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Please visit mbausa.org/logistics or email mbausa@logisticsplus.com to learn more.
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analytics | advocacy | absence | technology
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HR CONNECTION | WORKPLACE TRENDS EXPERTS: TRUCK DRIVER SHORTAGE IMPACTED BY PERFECT STORM Trucking officials say that, for a variety of reasons, there has been a deficit of truck drivers across the country for more than a decade. But with the economy reopening, e-commerce growing by leaps and bounds, and the lingering COVID-19 setbacks, it has all combined to create what some may call the perfect storm. “It’s as bad as we’ve ever seen it,” said American Trucking Associations (ATA) Chief Economist Bob Costello. The trucking industry is working to meet the demand, but it is only expected to continue to increase. According to the ATA more than 1 million truck drivers will be needed to answer America’s supply chain challenges.
Disability in the United States: The Benefits of Supplemental Insurance The need for some sort of income assistance when dealing with a disability is more common in the United States than you might think. According to the Council for Disability Awareness: • One in four Americans live with some form of disability. • More than one in four 20-year-olds can expect a disability to make them unable to work for a year or more before they retire. That’s why supplemental insurance like short-term and long-term disability insurance are such valuable benefits. Each provides an employee with a portion of his or her income while they are out of work with a disability. This can vary from anything from permanent paralysis — a case for long-term disability coverage — or acute anxiety, for which short-term disability could be invaluable. While the Family Medical Leave Act and Americans with Disabilities Act may provide an individual with certain job protections during periods of disability, it’s the financial security that makes short-term and long-term disability insurance so critical. “Depending on the severity of the disability, as well as the duration, that could be financially devastating,” says Liz Supinski, the Society for Human Resource Management’s director of research projects and insights. “If the disability prevented you from working long-term, it could permanently impact your earning potential.” Disability gives employees peace of mind — and employers an attractive benefit. Businesses can even customize their short-term disability insurance policy to be a stand-alone plan, complement an employer-paid short-term disability plan or work with a long-term disability plan to help ensure continuity of coverage. Visit https://lifelime.thehartford.com/ to read more from the experts at The Hartford.
FLEXIBILITY, SUSTAINABILITY TOP LOGISTICS PRIORITIES, SURVEY SHOWS A growing number of logistics companies plan to invest in technologies that provide convenient, efficient and sustainable order fulfillment. According to a new survey of high-level logistics executives from retail and supply chain enterprise software provider Blue Yonder, 59 percent of respondents, including 71 percent of those in consumer manufacturing, plan to offer flexible delivery windows for online orders to maximize sustainability throughout the supply chain. Close to half (48 percent) of all respondents plan to implement and/ or enhance their warehouse management systems (WMS) and cloud infrastructure (48 percent). In addition, 38 percent of respondents said that maintaining and optimizing convenient fulfillment options (such as curbside pickup, BOPIS, at-home delivery) is the most important factor for enhancing consumer experiences post-COVID-19. Other technologies respondents plan to implement or enhance include: • Artificial intelligence (AI) and/or machine learning (ML) 42 percent; • Sales and operations planning (S&OP) and/or sales and operations execution (S&OE) 42 percent; and, • Transportation management systems (TMS) 41percent.
Sara Fetchko, GBDS, VBS, is the client relationship manager for Group Benefits at The Hartford Financial Services Group, Inc. in Pittsburgh. For more information, visit www.thehartford.com.
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HR Q&A | GET ANSWERS WHO QUALIFIES AS AN ASSISTANCE ELIGIBLE INDIVIDUAL?
An assistance eligible individual (AEI) is any individual who is: 1) a qualified beneficiary as the result of a) the reduction of hours of a covered employee’s employment or (b) the involuntary termination of a covered employee’s employment (other than by reason of an employee’s gross misconduct), 2) is eligible for COBRA continuation coverage for some or all of the period beginning on April 1, 2021, through September 30, 2021, and 3) elects the COBRA continuation coverage. This includes qualified beneficiaries who are the spouse or dependent child of the employee who had the reduction in hours or involuntary termination of employment resulting in a loss of coverage, as well as the employee, if that reduction in hours or involuntary termination of employment caused the qualified beneficiary to lose coverage and the other requirements are satisfied.
MAY AN EMPLOYER REQUIRE INDIVIDUALS TO SELF-CERTIFY OR ATTEST THAT THEY ARE ELIGIBLE FOR COBRA CONTINUATION COVERAGE WITH COBRA PREMIUM ASSISTANCE? Yes. Employers may require individuals to provide a self-certification or attestation regarding their eligibility status with respect to a reduction in hours or involuntary termination of employment, which may assist the employer in substantiating its entitlement to the credit.
Employers are not required to obtain a selfcertification or attestation; however, employers who claim the credit must retain in their records either a self-certification or attestation from the individual regarding the individual’s eligibility status, or other documentation to substantiate that the individual was eligible for the COBRA premium assistance.
IRS Rolls Out Guidance on American Rescue Plan’s COBRA Subsidy The Internal Revenue Service (IRS) issued guidance on the American Rescue Plan Act (ARPA) to help employers navigate the changes on COBRA with the recently enacted American Rescue Plan Act of 2021 (ARPA). The ARPA, signed into law on March 11, 2021, included a subsidy that covers 100 percent of COBRA and state mini-COBRA premiums from April 1 through September 30, 2021. The subsidy allows for certain assistance-eligible individuals whose work hours were reduced or whose employment was involuntarily terminated to have their COBRA premiums paid by the employer/plan sponsors. The 40-page guidance document issued on May 18, 2021 includes multiple questions and answers that detail how to calculate the tax credit, including when a third-party payer is involved and includes information on who qualifies and how long. The subsidy is funded via a tax credit provided to employers, insurers or group health plans. According to the guidance, employers must document individuals’ eligibility for COBRA premium assistance in order to claim the credit. The Q&As further clarify that: • The subsidy is available for extended periods of COBRA coverage between April 1 and September 30, 2021, due to a disability, second qualifying event or extension under state mini-COBRA. • Involuntary termination includes constructive discharge and termination for cause, but not gross misconduct. • Health reimbursement arrangements, dental-only plans and vision-only plans are covered by the subsidy. Employers are encouraged to read through the entire guidance document to better equip themselves in handling the new law.
Rachel Tserkovniak, SPHR, is an HR consultant and trainer at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or rtserkovniak@mbausa.org.
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AUGUST 2021 • mbabizmag.com
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BUSINESS MAGAZINE
Got great news? Share it!
The Business Magazine publishes MBA member news on major appointments, mergers, grants and/or awards, as space permits. To submit your company news, email ktorres@mbausa.org!
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AUGUST 2021 • mbabizmag.com
SPECIAL SECTION | NETWORKING AND MORE
The Manufacturer & Business Association is proud to recognize our members throughout the region. To learn more about the benefits of MBA membership, as well as upcoming programs and services, visit www.mbausa.org. tion nia is celebrating 30 years in opera Electralloy in Oil City, Pennsylva exclusive licensed producer of ica’s Amer North is alloy in 2021. Electr cts master alloy pigs and ingot produ ® all NITRONIC bar, billet, coil rod, ® and weld consumables. as well as NITRONIC weld wire
CORE Environmental Services, Inc. is marking its 20th anniversary this year. The Allison Park, Pennsylvania company was founded in 2001 to provide environmental consulting services to the industrial and commercial marketplace.
Butler County Tourism & Conv ention Bureau is celebrating 20 years in business! The organization is locat ed in Zelienople, Pennsylvania.
Congratulations to Leesl Warr en from The Warren Company in Erie, Pennsylvania, who was the lucky winner of The Manufacturer & Business Association’s first virtual HR CoffeeTalk gift box in June 2021.
old this year! The Union Dale Cemetery is 175 years cemetery was incorporated nonprofit and nonsecretarian Brighton Road in Pittsburgh. in 1846 and is located at 2200
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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
Stick with what works.
96% of businesses that choose UPMC Health Plan stay with UPMC Health Plan. You’ve given a lot of thought to your employees’ health coverage. And you’ve come to a familiar conclusion — nothing’s better than UPMC Health Plan. Choose us for affordable plan options. Full in-network access to UPMC along with other doctors and hospitals in the community. Access to 24/7 virtual urgent care. Service from a designated Health Care Concierge. And digital health tools that keep up with busy lives and schedules. All this is worth sticking with, don’t you agree? To learn more, visit UPMCHealthPlan.com/employers.
Choose. Love. Repeat.
