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On the Cover: The Erie Water Works team is show here in front of “Big Bertha” in Erie, Pennsylvania. Installed in 1913, Big Bertha is still housed in the Water Works’ Chestnut Street Pumping Station on the south side of the Bayfront Parkway. In April 1981, The American Society of Mechanical Engineers designated it an engineering historical landmark. For full story, see page 4.
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FEATURES
WHAT’S INSIDE | OUTLOOK
3 WHAT LIES AHEAD?
Many small business owners are optimistic yet keeping an eye on developments.
COVER STORY | LOCAL PROFILE
4 ERIE WATER WORKS
Erie Water Works Chief Executive Officer Craig Palmer, P.E., MBA, shares why the organization is pumped about the future of one of Erie’s greatest assets with a more than $62 million capital budget in 2024 — its largest ever — and its historic lead line removal efforts and construction renewal projects.
SPOTLIGHT Q&A | FORECAST
7 Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) and associate professor of economics at Penn State Behrend, shares a snapshot of what he’ll discuss at the MBA’s Economic Outlook IMPACT Luncheon on December 5 at the MBA Conference Center in Erie.
EDITORIAL
LEGAL BRIEF | WORTH NOTING
9
Tax cuts are set to expire: What employers need to know.
Craig Shamburg ON THE HILL | UPDATE
15
Detriments of the LNG (liquefied natural gas) pause Jezree Friend
INSERT | TRAINING CATALOG
Check out the new MBA training classes coming in the new year.
What Lies Ahead? Many Small Business Owners Are Cautiously Optimistic Yet Keeping an Eye on Developments
As 2024 comes to an end, U.S. business confidence is being shaped by economic trends, election results, global events and consumer behavior. Key surveys and indexes highlight the current feelings among businesses. But what does all this mean heading into 2025?
With the 2024 presidential election wrapped, business owners are wondering what the next four years will hold. According to a survey from the Small Business & Entrepreneurship Council (SBE Council), many small business owners believe President-Elect Donald Trump will be good for the economy and their bottom lines.
The survey found that small business owners’ top concerns revolve around the economy, with inflation and the potential for a recession topping the list. Eighty-one percent said they remain worried about inflationary pressures over the next 12 months, while 78 percent are similarly concerned about an economic slowdown.
The SBE Council survey results reflect the challenges small businesses have faced in recent years. Sixty percent reported that slower sales and revenues are negatively impacting their business, while 73 percent said inflation is having a detrimental effect. Additionally, 65 percent cited high taxes and tax complexity as a problem.
There are also concerns about the expiration of key tax provisions from the 2017 Tax Cuts and Jobs Act. Fifty-four percent of small businesses using the 20 - percent small business deduction (Section 199A) say they will be negatively impacted if it is allowed to expire at the end of 2025.
The National Federation of Independent Business (NFIB)’s Small Business Optimism Index paints a varied economic picture. While many small business owners are worried about rising costs and inflation, a significant number still want to grow and hire new employees.
Experts agree that the Federal Reserve’s decisions on interest rates will be key to shaping business confidence. As discussions continue about how to tackle inflation, businesses are keeping a close eye on these developments.
In this edition of the MBA Business Magazine, we’ll explore some of the major economic engines in our region as well as some insights on key employer topics heading into 2025. We’ll hear from Erie Water Works CEO Craig Palmer, P.E., MBA, on the exciting initiatives under way there and why water — one of our greatest assets — is so important to our economic future.
We’ll also talk to Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) at Penn State Behrend, about why employers should plan to attend the MBA’s annual Economic Outlook IMPACT Luncheon
on December 5 at the MBA Conference Center in Erie. This year, Dr. Louie will be presenting along with Brian Pietrangelo, MBA, CIMA®, AIF ®, senior vice president and managing director of Investment Strategy at Key Private Bank. You won’t want to miss it! Also, be sure to check out this month’s expert articles on recognition, terminations, taxes and more. Plus, peek inside to see the MBA’s new Training Catalog, featuring all the upcoming professional development, HR and computer courses your team needs to succeed in 2025.
To learn more, visit mbausa.org!
PUMPED ABOUT THE FUTURE: Investing in One of Erie’s Greatest Assets
Along the shores of Lake Erie in Erie, Pennsylvania, a massive and complex system of pumps, pipes, reservoirs and treatment plants deliver one of life’s most essential resources: water. The driving force behind this system is Erie Water Works, an independent organization that is not only improving the quality and reliability of the region’s water supply, but also investing in the future through a more than $62 million capital budget in 2024 — its largest ever — marked by its historic lead line removal efforts and construction renewal projects. The Water Works’ fiveyear capital plan is valued at $225 million, which serves as a road map for the future.
At the helm of these initiatives are the ninemember Erie Water Works Board of Directors and Chief Executive Officer Craig Palmer, P.E., MBA, who oversees the day-to-day operations and 106 employees. Palmer, who took over as CEO in January 2024, has been an integral part of the Water Works’ leadership team for nearly 20 years. He served as senior manager of Engineering Services and as a consulting
engineer before being tapped for the Water Works’ top post.
“Our mission,” Palmer states, “is to deliver the highest quality water we can, at a reasonable price. Not only to drive economic development, but to keep rates as affordable as possible for our customers.”
operation and proactive maintenance of a water system begun decades ago to ensure the access to potable water is dependable.
Thanks to its location on the Great Lakes, the Erie region has access to an abundance of fresh water. Yet, ensuring this water is safe to drink and can reach approximately 64,000 direct residential, commercial, industrial and institutional customers in the City of Erie, Harborcreek, Lawrence Park, Millcreek and McKean Township, McKean and Wesleyville Borough, as well as parts of Greene and Summit townships is a huge undertaking.
Erie Water Works relies on a dedicated team of professionals who are tasked with the
“We like to say we have world-class water and first-class service, and we have some of the best water in the United States,” says Palmer. “But when we talk about first-class service, it starts with our team answering the call any time of day or night to do the work necessary to deliver an uninterrupted supply of high-quality drinking water.”
MAJOR PROJECTS AND INVESTMENTS
Erie Water Works’ infrastructure certainly plays a crucial role in delivering water to the community. To maintain effectiveness and efficiency, continuous investment to facilities and systems is essential to meet and exceed regulatory and safety standards.
In recent years, Erie Water Works has made significant changes to modernize its treatment plants, particularly the nearly 17-year, three-phase $70 million renovation of the Richard S. Wasielewski Water Treatment Plant. This project, completed in 2023, included a full renovation of the
Erie Water Works employs 106 professionals who are dedicated to ensuring that safe potable water is delivered to more than 64,000 direct residential, commercial, industrial and institutional customers throughout the Erie region. Erie Water Works has been serving the Erie community and surrounding areas for more than 30 years, assuming operations of Erie’s water system on January 1, 1992.
Erie Water Works stands by its Mission Statement shown here
facility with new pumps, motors and piping, back-up power generation and an upgrade to its filtration system, a cutting-edge water treatment technology called ultra-filtration membranes that has enabled Erie Water Works to achieve a “commendable” performance, the highest ranking possible from the Pennsylvania Department of Environmental Protection.
Now, the Water Works is making history with its “get the lead out” initiative to remove lead goosenecks on customer service lines in some of the poorest zip codes within the City of Erie and the country, most of which are designated as Environmental Justice Areas by the U.S. EPA.
Over the past 20 years, more than 5,800 goosenecks have been removed by Water Works’ team members. The Water Works annually budgets about $1 million to fund the work of the program, with expected completion at the end of 2027. That’s the year the EPA is implementing its 10-year lead removal deadline for utilities.
The Richard S. Wasielewski Water Treatment Plant, located at 399 Sommerheim Drive, marked the completion of a 17-year, three-phase $70 million renovation in 2023. Also shown is the John J. McCormick Jr. Administration Building located at 340 West Bayfront Parkway in Erie. The Erie Water Works’ Chestnut Street facility has an extensive history of providing water to the City of Erie and surrounding community.
According to Palmer, the Erie Water Works has been able to accelerate its lead removal efforts thanks to an infusion of funding secured in large part because of its cutting-edge geographic information system (GIS). Being able to identify where the lead was so quickly enabled the Water Works to jump to the front of the line in applying for grant money — with $49.2 million in funding obtained in the past two years; $39.8 million of which was grants and $9.4 million in 1percent interest, 30-year loans.
“The funding is allowing us to replace our lead lines 400-percent faster than we had been. What would’ve taken 25 to 30 years is going to take us less than five, as we work to remove the 7,200 remaining lead goosenecks,” Palmer says.
In addition, Erie Water Works has identified the potential hazard for lead deposits in galvanized pipe that connects to the customer’s privately owned side of the water connection. In these Environmental Justice Areas, where most customers can’t afford the pipe’s estimated $5,000 replacement cost, the Water Works has been able to assist, providing a $15 million economic benefit. “Grant money and the low-interest funding that we’re getting from the Bipartisan Infrastructure Law is not just replacing part of the publically owned system, but the customer’s privately owned side as well,” Palmer says.
At Erie Water Works, the lead line removal project is all about public health. “Even though we have exceptional corrosion control treatment to prevent lead from leaching into the water, our focus is to literally remove the lead, to take that risk factor away,” says Palmer.
ASSETS AND EXPANSION
Keeping track of 775 miles of pipe and more than 375,000 water features — 13,700 valves and 4,100 fire hydrants — throughout its footprint may seem daunting, but Erie Water Works has spent years identifying these data points. The
Water Works’ data system is so precise that every asset has a GPS (global positioning system) location within three inches.
From this information, Erie Water Works not only knows exactly where its assets are located, but it is also able to prioritize and rank projects and water mains that need to be replaced. Being an early adopter of this innovative technology has paid dividends.
“We know our water main break history; we know where the highest consequence of failure is — whether it’s in a state highway, near a hospital, in an industrial corridor, or if critical customers are affected, so we’re able to get the most bang for our buck with our investment strategy,” Palmer states.
The Water Works has been equally adept in its efforts to acquire low-interest loans and grants for new projects.
Most recently, the Water Works finished a water main extension into Greene Township to replace the Kirsch Road Water system. In addition, Greene Township, Millcreek Township and Erie Water Works entered into a memorandum of understanding to work together to extend water lines even further. Erie County and County Executive Brenton Davis granted Erie Water Works $74,000 to design the next phase of water main extension into Greene Township,
The Water Works’ administration team and senior management are shown here along the Erie Bayfront overlooking Presque Isle Bay and one of the region’s greatest assets — fresh water.
From left: U.S. Environmental Protection Agency (EPA) Acting Assistant Administrator for Water Bruno Pigott, PENNVEST’s Brendan Linton, Erie Water Works CEO Craig Palmer and Erie Mayor Joe Schember celebrated federal funding and the water utility’s progress protecting its drinking water from lead. Since 2021, the Water Works has received $49 million of federal funding to replace lead pipes in Environmental Justice Areas of the City of Erie. The Bipartisan Infrastructure Law provided more than $42 million of this investment.
along Route 8 and into Millcreek. As a result, the Water Works is designing the project so it’s shovel-ready and applying for $1 million in grant money to help fund it.
The Water Works is also applying for grant money to extend water on Clark Road in Harborcreek Township where residents in that area have been desperate for water connections.
“Our water utility serves as an anchor institution in Erie County, providing not only a vital resource but also stability, innovation, and leadership. We are deeply invested in the well-being of the region, supporting economic growth, fostering environmental stewardship, and ensuring access to safe, reliable water for generations to come.”
“Water is life,” Palmer explains. “It is the lifeblood of the community, and you can’t thrive and succeed without it. Because it’s so fundamental to our health and safety and our businesses, I think it’s important for us to do everything we can to help those in need.”
EDUCATION AND COMMUNITY ENGAGEMENT
Erie Water Works is amplifying its community engagement and education efforts with more involvement in community events and programs, such as MFG Day, Asbury Woods Children’s Water Festival, and through open houses and tours.
According to Palmer, as more people embrace environmental stewardship and learn about the hazards single-use
plastics like bottled water pose to our water source, Lake Erie, his organization has renewed efforts to educate the public about the many benefits of tap water. In its quarterly newsletter, the “Newsplash,” for instance, the Water Works informs its customers about all things water and offers incentives, such as a chance to win an Erie Water Works’ Yeti for customers who sign up for its Customer Notification System.
Most recently, Palmer and his team have begun a community based water fountain project to promote the use of reusable water bottle filling stations at local organizations, such as the Manufacturer & Business Association (MBA). Erie Water Works’ messaging will surround the fountain, and a scannable QR code with “TAP 814” will provide people with more information about the benefits of public drinking water. Palmer is planning to start a customer assistance fund with proceeds from the sale of Water Works merchandise — T-shirts, coffee mugs and more — that promote the use of tap water as well.
“Our water quality is job No. 1,” says Palmer. “That’s our product. We’re the only utility that delivers a product for consumption where every single drop must be totally potable to meet and exceed all regulatory standards.”
ECONOMIC IMPACT
The investments being made today by Erie Water Works will not only improve water quality and reliability, but also position the Erie region for future growth and prosperity. The Water Works can supply water from New York to Ohio and as far south as the Great Lakes Basin. “We’re poised for water system expansion,” Palmer says. And as changes in climate patterns continue, Palmer insists the Great Lakes will be a destination for businesses and aims to position the Erie Water Works to capitalize on that future opportunity. Palmer believes reliable, high-quality water will be a key factor in attracting new businesses to the area, particularly for manufacturing industries, which typically require large amounts of water for their operations. Erie Water Works already boasts a declining block rate structure considered to be among the most business-friendly in the country. As part of that structure, business and industrial customers,
which use more water, consistently have lower peaks on the system and lower rates than residential customers as a result.
“In terms of sustainability for business, every expense matters and certainly the cost of water is part of that,” he says.
Another aspect of sustainability is emergency preparedness. In the past five years, Erie Water Works has repainted all of its 13 steel storage tanks and has enacted repairs on five concrete storage reservoirs. In those, 76 million gallons of water is being stored for emergency use and fire protection. “So, if the power goes out, we still have water in the tanks, and we’re still supplying water for customer needs and fire protection,” Palmer says.
Currently, the Water Works’ five-year capital investment plan calls for aggressive infrastructure spending to fund construction projects and improvements in the system. “Looking ahead, we’re going to find the cheapest money possible to do that,” insists Palmer, “so we can keep rates as affordable as possible and continue to serve the needs of Erie County now and in the future.”
In ensuring a steady supply of clean water, Erie Water Works is not only sustaining health and safety but also helping to pump the area’s economic growth, proving that access to this vital resource is one of the region’s greatest assets.
For more information, visit ErieWater.org.
Erie Water Works’ senior management includes, from left: Chad Ellsworth, P.E., P.G. and Ph.D., senior manager of Engineering Services; Mark Murray, senior manager of Operations, Water Quality & Maintenance; Ronald Costantini; senior manager of Administration; Chief Executive Officer Craig Palmer, P.E., MBA; Joshua Berg, senior manager of Customer Service and Meters; and, Peter Hirneisen, P.E., senior manager of Distribution.
Teams work to ensure that customers have access to reliable water service.
Cheryl Rush Dix
Ryan M. Bergquist Treasurer Shantel D. Hilliard
David E. Palotas
Heather A. Harrington, Esq Jeffrey D. Willis II, PE
Daniel J. Bensur Chairman
Paul D. Gambill Secretary Richard E. Wagner Vice Chairman
2024 Erie Water Works Board
ERIE Economist Shares Snapshot of 2025 Economic Outlook
For most employers, economic forecasts are extremely valuable to making informed business decisions. Here, Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) and associate professor of economics at Penn State Behrend, shares a snapshot of what he’ll discuss at the MBA’s Economic Outlook IMPACT Luncheon on December 5 at the MBA Conference Center in Erie. The event is presented by the MBA, MBA Business Magazine, ERIE, KeyBank, Duncan Financial Group and Larese Floral.
The MBA has been fortunate to work with you and ERIE for some years on our annual Economic Outlook presentation. Tell us more about your background in forecasting and economics.
It has also been a pleasure for me to work with the MBA over the past decade. I began studying economics when I was a sophomore in college, earned a Ph.D. in the subject, and have been teaching at Penn State Behrend ever since. As director of ERIE, I oversee the Erie Leading Index (ELI), which is our primary forecasting tool. In addition to compiling ELI, which allows us to anticipate turning points in the local economy, we also pay close attention to the projections made by leading national forecasters.
This year, you will be joined by Brian Pietrangelo of KeyBank to share the economic forecast. What are some key areas and topics that you plan to discuss during your part of the presentation?
My presentation will focus on the performance of the Erie economy, analyzing historical as well as current economic trends and comparing local, state and national economic conditions. I also will highlight our local economic achievements as well as ongoing challenges as Erie adapts to the advances in technology, the gradual movement towards an information-based service economy, and the heightened degree of global competition.
2024 has been a challenging year for many individuals and businesses. How would you describe the state of the economy over the past year?
I would describe the economy as being stable and resilient. In 2023, the U.S. economy added over 2.5 million jobs, an average of over 200
thousand jobs added per month on a seasonally adjusted basis. Job growth has continued throughout the first nine months of 2024, although the pace of that growth has slowed to an average of 170 thousand jobs per month. In Erie, almost 150 jobs were added per month, on average, between January and September of this year, higher than the monthly average of 100 jobs added in 2023. Although the labor market has remained strong, many individuals and businesses continue to face challenges, especially since they have had to adjust to the lingering effects of the recent inflation.
You usually unveil the results of the Erie Leading Index (ELI) at the MBA’s Economic Outlook Luncheon. Will this be the case this year and why is the ELI so important?
Yes, we will be releasing the latest update to our Erie Leading Index (ELI). ELI is a useful gauge that allows us to anticipate the future trajectory of the Erie economy. ELI is a composite index that incorporates eight separate measures of economic activity at the national, state and local level. Since ELI can provide advance warning of an impending economic downturn, it can be a very useful planning tool for business leaders as they chart the future course of their organizations.
U.S. economic data continues to surprise us, revealing ongoing resilience despite looming uncertainties and persistent shocks. What economic opportunities and challenges do you see for 2025?
A major economic opportunity for 2025 and beyond is the continued upgrading of our national infrastructure, which will build even greater resilience into our economy. Although the Infrastructure Investment and Jobs Act
(IIJA) was passed and signed into law in 2021, federal funding continues to be allocated to communities across the country. In addition to improving the nation’s infrastructure, this program will also create jobs along the way, making it an especially important opportunity for communities like Erie. Economic challenges for 2025 and beyond include the rapid pace of technological change, intensified global competition, and the economic impact of events related to the environment. All of these challenges will have a significant effect on economic performance and will therefore require carefully balanced policy decisions to ensure sustainable growth and prosperity. Why do you believe business owners should plan to attend the December 5 Economic Outlook IMPACT Luncheon? Achieving success as a business owner depends on recognizing and understanding the economic forces and trends that will have a major impact on the future course of the economy. By seeing the underlying trends in the economy and understanding what those trends signal for the future, business owners can make more informed and fact-based decisions that will contribute to the success of their organizations. Business owners can therefore benefit from seeing the economic analysis that we provide at the MBA’s annual Economic Outlook IMPACT Luncheon.
To register for this year's Economic Outlook IMPACT Luncheon on December 5 at the MBA Conference Center in Erie, visit mbausa.org
Legal solutions driven by real relationships.
As the holiday season approaches, we are reminded of the importance that relationships play in solving complex business problems.
With over 125 years of legal experience, we know that the best relationships are formed out of a mutual trust and respect. Throughout your dealings with MacDonald Illig, our team will keep you informed, be responsive to your needs, explain the matter in the context of your business, and keep you apprised of what lies ahead.
From bet-the-company litigation to major transactions, we will work together with you to determine the best solution or means for achieving your goals.
We would like to extend our heartfelt thanks to our clients, community, and employees for a wonderful 2024. We wish you Merry Christmas, Happy New Year, and a happy holiday season!
Call: (814) 870-7600 or visit: macdonaldillig.com
MacDonald, Illig, Jones & Britton LLP 100 State St. Suite 700, Erie, PA 16507
Tax Cuts Set to Expire
Craig Shamburg is a partner at MacDonald Illig. He counsels clients on estate planning and administration, tax, business transactions, and succession planning matters.
In 2017, the Tax Cuts and Jobs Act (the “TCJA”) was passed into law and it drastically amended the Internal Revenue Code for individuals and businesses alike. As enacted, many of the TCJA tax cuts are scheduled to expire in 2025. These expiring provisions will likely be a focus of the new Congress and president in 2025. This article will discuss some of the provisions set to expire.
INDIVIDUAL PROVISIONS
While the TCJA affected many tax law aspects, the most obvious change was a reduction in income tax brackets for individuals to 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. If the TCJA provisions are permitted to expire, the individual brackets will revert to 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent.
In addition to reducing tax brackets, the TCJA sought to simplify income tax returns for individuals. To accomplish this goal, the TCJA nearly doubled the Standard Deduction.
These changes were intended to reduce the time and effort of tracking expenses throughout the year. In 2024, single taxpayers are entitled to a $14,600 deduction ($29,200 for Married Filing Jointly) from their taxable income. If this provision expires, it is expected that the standard deduction will be reduced to around $8,300 for single taxpayers ($16,600 for Married Filing Jointly).
If the TCJA expires, Individual Taxpayers would again be permitted to deduct state and local taxes (SALT) in excess of $10,000, mortgage interest on the first $1 million in home mortgage debt and $100,000 in a home equity loan, and most other miscellaneous itemized deductions to the extent they exceed 2 percent of adjusted gross income. These changes will cause many taxpayers to track, report and claim itemized deductions again as opposed to claiming the reduced standard deduction.
Finally, the TCJA also doubled the child tax credit that taxpayers were entitled to claim (from $1,000 to $2,000 per child). Absent changes in the law, the Child Tax Credit would revert to $1,000 per child in 2026.
In addition to the income tax provisions discussed above, the TCJA greatly increased exemptions from the Federal Estate and Gift Taxes. The exemption amount is the amount that can pass free of Federal Estate and/or Gift Tax to individuals other than a spouse. In 2017, pre-TCJA, the Lifetime Gift and Estate
Tax Exemption was $5.49 million. In 2018, that amount increased to $11.180 million (which has increased to $13.610 million in 2024). When portability is utilized, married individuals have a combined exemption in excess of $27 million in 2024. If the TCJA expires, the exemption is scheduled to revert to $5 million, indexed for inflation. This reduction will cause many taxpayers to become subject to the Federal Estate and/or Gift Taxes.
If you are one of these individuals, you should begin potential planning now to utilize exemption amount before it potentially sunsets at the end of 2025.
BUSINESS PROVISIONS
While many changes made by the TCJA will sunset at the end of 2025, the flat 21-percent tax rate on corporate taxable income is scheduled to remain in place. The business provisions that are scheduled to sunset will affect owners of closely held businesses that are taxed individually on their company’s income.
The TCJA first introduced the Qualified Business Income (QBI) deduction in 2017. The QBI deduction allows a business owner to deduct from their individual income up to 20 percent of their business’s QBI (subject to various calculations outside the scope of this article). Absent a change in law, the QBI deduction will expire after 2025.
Another TCJA benefit to business owners was permitting bonus depreciation on Qualified Property. The term Qualified Property was expanded to include used assets, unless such asset was purchased from a related party. The TCJA provides that bonus depreciation begins to phase out in 2023, with a complete phase out for assets placed in service after December 31, 2025.
The TCJA was a drastic change with many benefits that are scheduled to expire in 2026. Each individual and entity will be affected differently and you should create a plan for the potential of the 2026 sunset with your financial, tax and legal advisers.
For more information, contact MacDonald Illig's Business Transactions practice group at 814/870-7600 or info@mijb.com.
ACE WIRE SPRING & FORM CO., INC.
HOSTS TOURS FOR MANUFACTURING DAY
Ace Wire Spring & Form Co., Inc. recently marked Manufacturing Day by hosting tours at its McKees Rocks, Pennsylvania facility to showcase modern manufacturing and inspiring the next generation of manufacturers. This year, the company hosted two groups of students from Rosedale Technical College and City Charter High School, providing them with an inside look at its operations and the exciting opportunities within the manufacturing industry.
On October 8, Rosedale students had the opportunity to tour Ace’s facility, observe its state-of-the-art machinery in action, and interact with experienced engineers and technicians.
The following day, on October 9, students from City Charter High School visited. Ace provided them with hands-on demonstrations, showcasing how technology and craftsmanship come together to create high-quality products.
To honor its dedicated employees for their hard work in making Manufacturing Day a success, Ace also concluded the week with a special celebration. After all the school visits, Ace hosted a pizza party and cake to show its appreciation to its employees for their efforts in enlightening the next generation.
Ace Wire Spring & Form Co. Inc. is a specialist in the manufacturing of custom springs and wire forms.
For more information, visit acewirespring.com.
WABTEC CORPORATION RECEIVES
$48.41M GRANT FOR HYDROGENPOWERED TRAIN DEVELOPMENT IN ERIE Wabtec Corporation, Erie County’s largest industrial employer, has secured a significant grant of $48.41 million to foster the development of hydrogen-powered trains. This initiative is supported through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program, which is funded by the Infrastructure Investment and Jobs Act.
The grant aims to transform Wabtec’s operations in Lawrence Park Township by remanufacturing existing trains to utilize hydrogen as a fuel source. This project not only emphasizes the shift towards sustainable transportation solutions but also reinforces the facility’s role in pioneering advanced rail technologies. Previously, this same plant developed the FLXDrive battery locomotive, marking a significant step in green technology adoption.
For more information, visit wabteccorp.com.
LOCAL MANUFACTURERS CLAIM TOP ACCOLADES IN NATIONAL 2024 MAPP PLASTICS INDUSTRY SAFETY AWARDS
Local manufacturer Plastikos, Inc. was recently honored with the 2024 MAPP (Manufacturers Association for Plastics Processors) Safety Best Practice Award as voted on by member companies from across the United States. In addition, Plastikos and two sister companies, Micro Mold and Plastikos Medical, were also selected as recipients of the Safety Gold Achievement Award, which recognizes exceptional workplace safety throughout the prior year. Molding Manager and Jr. Partner, John Williams, II leads the Plastikos Safety Committee as well as the award submission process. “All of our safety projects consist of cross-functional teams working together between departments. They are the culmination of everyone’s hard work and commitment to safety. I am so proud of everyone’s hard work and dedication that makes Plastikos, Plastikos Medical, and Micro Mold the very safe and exceptionally clean workplaces that we are today.”
According to the MAPP website, The Safety Achievement Award is a way to recognize safety in the plastics industry at those facilities that achieved a level of safety performance well above the industry average. The annual Safety Awards are based on data that was reported on a company’s annual OSHA 300 Log of Work-Related Injuries and Illnesses, with the Gold Safety Achievement Award reserved for facilities that maintained an injury-free workplace throughout the year.
The Annual Safety Best Practice Award is a way to recognize the industry’s best practices and safety-focused continuous improvement projects that organizations implemented to increase overall safety. President & General Manager Philip Katen commented: “Our Team’s individual & collective commitment to continually improve safety in the workplace is a key element of our culture, which directly supports our Company’s vision to ‘Make the Impossible… to Make Life Better’. We are honored that our industry peers from across the country recognized the innovative and impactful safety improvements that our Team implemented, which ultimately earned 1st Place in MAPP’s Annual Safety Best Practice Award program. And we hope that other companies will implement similar projects at their facilities in order to advance the safety of the larger plastics industry.”
The Erie-based, family owned companies’ award-winning safety submission encompassed multiple, continuous improvement projects. Plastikos, Micro Mold & Plastikos Medical specialize in products that positively affect quality of life, including diabetes care, innovative drug & vaccine development programs, medical testing applications, medication delivery systems, respiratory, endoscopic and surgical eye care devices, among other medical device applications. To learn more, visit https://plastikoserie.com.
Ace Wire Spring & Form Co., Inc. in McKees Rocks, Pennsylvania hosted a Manufacturing Day celebration with facility tours.
GROSS NAMED NEXT CEO OF VIKING PLASTICS
Viking Plastics, a subsidiary of Hoffmann Family of Companies, and a leader in injection molding and engineered solutions, recently announced the planned transition of its leadership team as part of a greater succession strategy. Kelly Goodsel stepped down from his role as chief executive officer and chairman, effective November 1. Shawn Gross, who served as president, succeeded Goodsel as CEO, beginning the same day. Goodsel remains involved as a trusted adviser and business ambassador.
BISHOP & COMPANY INVESTMENT MANAGEMENT, LLC WELCOMES
NEW ASSOCIATE ADVISOR
LECOM LEADER RECEIVES PRESTIGIOUS AWARD
“I am excited to welcome Shawn as the next CEO of Viking Plastics,” said Geoff Hoffmann, co-CEO of Hoffmann Family of Companies. “Shawn’s extensive plastics expertise, intensive focus on quality and unwavering commitment to driving a culture of continuous improvement will take the company to new heights. Under Kelly’s leadership, Viking Plastics has seen tremendous growth, establishing itself as a leader in the injection molding and assembled products industry with a trusted brand and strong financial foundation. We wish Kelly all the best in this next chapter of his life.”
Since 1972, Viking Plastics has created innovative, cost-effective solutions for complex engineering challenges. With extensive expertise in custom molding, the company operates over 50 injection molding machines and multiple automated assembly cells across its U.S. manufacturing facilities in Kentucky, Indiana and Pennsylvania. From its headquarters in Corry, Pennsylvania, Viking Plastics serves customers globally.
Gross expressed his appreciation for Goodsel’s impactful leadership over the years, stating, “On behalf of Viking Plastics’ stakeholders — including our customers, employees, shareholders, suppliers and community members — I want to sincerely thank Kelly for his 24 years of dedicated service, during which he held key roles as president, CEO, chairman and owner.”
Goodsel added, “It has been an honor to lead such an exceptional team at Viking Plastics as president and CEO over the past two decades. I’m deeply grateful for the countless opportunities and experiences throughout my career. I’m incredibly proud of our employees and their unwavering dedication to serving our customers. With the strength of our people, products and processes, I’m confident the company is well-positioned for continued growth and success. Shawn is a well-rounded executive with a proven track record, and I’m certain he, along with the management team, will further strengthen Viking’s position as the partner of choice across all areas of the business.”
Michael H. Bishop, Esq. has joined his family’s investment management firm, Bishop & Company Investment Management, LLC in Erie, as an associate advisor. In this role, Bishop will provide insightful guidance to clients with retirement in mind. Bishop graduated from the 3+3 law program from John Carroll University with a Bachelor of Science degree in economics in 2020, and from Case Western Reserve University School of Law with his Juris Doctorate and business law concentration in 2022. He served as president of John Carroll’s student government working with the Board of Directors of the University to create policy. While in law school, Bishop acquired a business law concentration, giving him insight into corporate governance and compliance. Prior to joining Bishop & Company, Bishop worked as an estate planning attorney where he advised clients on various and complex tax matters.
Bishop is pursuing the Certified Financial Planner designation to complement his expertise, enhancing his legal and financial planning skills
CLARION COUNTY COMMUNITY BANK ANNOUNCES LEADERSHIP TRANSITION
William E. Hager, III, chair of the Board of Directors for Clarion County Community Bank (CCCB), recently announced the planned leadership transition for James L. Kifer to Travis Heiser as president and chief executive pfficer for CCCB. Kifer will remain with the Company’s Board of Directors and will work closely with Heiser and the senior management team to provide a seamless transition for customers, employees and the communities the bank serves.
Hager stated, “We are delighted to welcome Travis Heiser to our growing team and to our community. He has worked in banking serving small rural communities for years. He was the CEO for a multiple branch financial institution. He will work well within the culture Jim and others have created these past 20 years”.
Heiser, a Western New York native, is the former CEO of Inner Lakes Federal Credit Union. During his 21 years as CEO, Heiser worked to orchestrate an 800-percent growth in assets.
Founded in 2004, Clarion County Community Bank is a full-service bank headquartered in Clarion with branch locations in Clarion, New Bethlehem, Rimersburg, Franklin and Erie, PA. Flagship Community Bank, a division of Clarion County Community Bank in Erie, was founded in 2024.
The Lake Erie College of Osteopathic Medicine (LECOM)’s regional dean, Richard A. Ortoski, D.O., recently received recognition at the highest level by the Pennsylvania Society of the American College of Osteopathic Family Physicians, with the honor of the Raymond J. Saloom, DO, FACOFP Memorial Award.
The award is presented in recognition of untiring efforts to promote the art of family practice and to preserve the integrity of the osteopathic profession. The accomplished physician-educator has served in leadership roles on multiple boards and committees, completing nine years (the maximum) as a Board Member of the National Board of Osteopathic Medical Examiners (NBOME).
As a LECOM leader, Dr. Ortoski serves as chair of the Primary Care Education Department and is clinical director of the Primary Care Scholars Pathway. In 2016, Dr. Ortoski was appointed President of the Pennsylvania Osteopathic Family Physicians Society (POFPS). The POFPS is the noteworthy organization that represents family physicians who hold the Doctor of Osteopathic Medicine Degree.
LECOM offers the Primary Care Scholars Pathway (PCSP), one of five of the only threeyear Doctor of Osteopathic Medicine Degree programs in the nation. Dr. Ortoski serves as the clinical director of the PCSP, which encourages medical students to pursue a career as a primary care physician and to address the national shortage.
In addition to his many positions and accomplishments, Dr. Ortoski was re-elected as the chair of the Erie County Board of Health. He has worked with the Erie County Health Department since 1992, serving in various roles.
The Erie KeyBank team looks forward to another year of supporting the people and places that make our community so special. Happy Holidays!
To learn more about how we can help with your financial goals, contact:
Kirk Reynolds Business Banking
Kirk_Reynolds@keybank.com
Greg Hyziewicz Private Banking
Gregory_Hyziewicz@keybank.com
Kellie Liston
Middle Market Banking
Kellie_Liston@keybank.com
Shown are the KeyBank Relationship Management team supporting businesses in Erie and surrounding communities.
From left: Kirk Reynolds, Greg Hyziewicz, and Kellie Liston.
Detriments of the LNG Pause
Jezree Friend is the vice president of the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or jfriend@mbausa.org
Global economic and political dynamics are constantly changing and shifting. Actions by one country can have a ripple effect around the world. Reliance on another country can lead to precarious situations. This was recently amplified when Russia invaded Ukraine and cut off critical energy supplies to European nations. This unfortunate example highlights the need for stable energy resources and how important a role it can play on global relations.
Here, in Pennsylvania, we have the resources right under our feet to grow our economy, enhance our national security and help stabilize global energy markets. As one of the leading natural gas producers in the country, second to Texas, Pennsylvania has emerged as a leader in the energy sector. The state’s abundant natural gas reserves have been a significant economic driver — supporting tens of thousands of jobs, revitalizing communities that had long
been stagnant, and infusing substantial tax revenue into state and municipal coffers. The natural gas industry has put Pennsylvania on the map when it comes to energy innovation and opportunities.
Unfortunately, a short-sighted policy by the Biden administration is threatening to upend these positive benefits provided by the natural gas industry.
In January, the administration announced it was pausing new permits for U.S. liquefied natural gas (LNG) to study the impacts of these projects. Putting these permits on hold is a win for Russia and a loss for America’s allies, U.S. jobs and global climate progress.
There is no additional review needed to understand the clear benefits of U.S. LNG. In fact, six studies commissioned by the Department of Energy under both Democrat and Republican administrations over the past decade demonstrated the importance of this vital resource to stabilizing global energy markets, supporting thousands of American jobs and supporting emissions reductions around the world through the transition to cleaner fuels.
The negative effects of this permitting “pause” extend to every community across the Commonwealth. Pennsylvania is unique in that it levies an impact fee, clever word for tax, on the industry. The revenues generated from this fee are distributed annually to every county in the state.
Local governments have used these revenues to fund a wide variety of critical projects, including infrastructure upgrades; the building of parks, bike trails, and additional green space; and providing new equipment to emergency personnel. However, when companies produce less natural gas due to bad policies, this funding drops.
Thankfully, our governmental structure allows for checks on these types of sweeping policies implemented by the executive branch. In early July, a federal judge blocked the administration permitting pause; unfortunately, the Department of Energy has yet to take any actions to resume permitting for these projects.
For generations, the United States has served as a beacon of strength throughout the world. We are fortunate to live in a country with abundant energy resources that can provide American families and business with affordable and reliable energy while also serving as a stabilizing force for global markets. Policymakers should be focused on enacting smart energy policies that realize the full potential of these resources to meet the world’s growing energy needs.
Having a financial partner who understands your business is important. Having one who is invested in your success is invaluable. With FNB, you’ll have access to a full range of financing solutions to meet your long and short-term goals, from asset-based loans to flexible equipment leasing options. More importantly, you’ll have the support of a dedicated expert who understands your vision and can offer creative solutions to realize it. Find out how FNB can help your business grow at fnb-online.com/behindyourbusiness
Cultivating a Culture of Appreciation: Simple Ways Leaders Can Recognize Employee Contributions in the Workplace
As 2024 draws to a close, it’s crucial for leaders to reflect on the hard work and dedication their employees have demonstrated throughout the year. Expressing appreciation not only boosts morale but also fosters a positive workplace culture.
According to the “Employee Recognition Survey” conducted by the Society for Human Resource Management (SHRM):
• Sixty-eight percent of employees indicated that they would work harder if they were better recognized.
• Organizations with strong recognition programs had 31-percent lower voluntary turnover rates.
Another key study from Gallup found that companies with high employee recognition have 14-percent higher productivity and 28-percent lower turnover rates. This demonstrates a clear link between recognition and overall organizational performance — and the difference it can make in the workplace.
Here are some simple and effective ways leaders can convey their gratitude:
1. Personalized Acknowledgment:
Take the time to recognize individual contributions. A simple thank-you note or a shout-out in a team meeting can make employees feel valued. Tailor your message to highlight specific achievements, showcasing that you notice their efforts.
2. Celebrate Milestones: Host endof-year celebrations to honor team accomplishments. Whether it’s a casual gathering or a formal awards ceremony, recognizing achievements collectively can strengthen team bonds and create a sense of shared success.
3. Encourage Peer Recognition: Implement a peer-to-peer recognition program where employees can acknowledge each other’s contributions. This not only promotes a culture of appreciation but also empowers team members to celebrate one another.
As leaders, taking the time to express gratitude can profoundly impact employee engagement and retention. Let’s end 2024 on a high note and make appreciation a cornerstone of our workplace culture as we move into the new year!
Tracy Daggett, PHR, is the director of Training and Development at the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or tdaggett@mbausa.org
SURVEY FINDS GEN Z EMPLOYEES HAVE SOME WORK AHEAD TO EARN BOSSES’ TRUST
A recent survey by Intelligent.com found that about one in six companies are hesitant to hire recent college graduates, citing concerns over their preparedness, communication skills and professionalism.
A stunning six in 10 businesses said they had fired college grads they hired in 2024, while one in seven said they may refrain from hiring recent college grads next year.
Some hiring managers and business leaders believe Gen Z employees often lack the motivation, charisma and soft skills necessary to thrive in a professional environment, the survey found. About 7 percent of the companies that were surveyed said some or all of the recent college graduates they hired this year were “unsatisfactory.”
“Many recent college graduates may struggle with entering the workforce for the first time as it can be a huge contrast from what they are used to throughout their education journey,” Intelligent’s Chief Education and Career Development Advisor, Huy Nguyen, said in the report.
Nearly 1,000 business leaders participated in the survey, which was conducted in August.
Nguyen says managers need to adapt their approach to recruiting since Gen Z is set to make up around 30 percent of the workforce by 2025. He said interviewers should focus on a candidate’s potential and problem-solving skills rather than just their experience and encourages them to ask about educational projects and situations that reflect real-world workplace challenges.
ONE IN THREE U.S. EMPLOYEES WANT TO PHASE INTO RETIREMENT
While millions of older working Americans are delaying plans to retire amid mounting financial concerns, another group of employees are taking a different path: phasing into retirement. That’s according to new survey research from WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.
The 2024 Global Benefits Attitudes Survey found one in three (34 percent) workers age 50 and older either have already started phasing into retirement (15 percent) by reducing their work hours or job responsibilities as they near retirement or want to do so (19 percent). Most of these employees want to transition into retirement over a long period of time.
Most workers who are currently phasing have reduced their work hours (61 percent) or job responsibilities (41 percent). Slightly fewer numbers of employees want to change to a different role or job in their industry or change where or how (more or less remote) they work.
NEW DIRECTIONS COMMUNITY CREDIT UNION
Franklin-Oil Region Credit Union announced in June that they would be rebranding and changing their name to New Directions Community Credit Union. The rebrand was part of an initiative to give the credit union a new distinguished identity following a series of changes meant to bring about growth, sustainability and enhanced member services.
The credit union proudly serves anyone who lives, works, worships, volunteers, attends school in, regularly conducts business in, or who owns a business in Venango, Forest, Warren, and Crawford Counties in Pennsylvania.
Offices in Franklin and Oil City
P: (814) 432-4091 F: (814) 437-2720
777 Allegheny Blvd, Franklin, PA 16323 25 East First Street Oil City, PA 16301
P: (814) 676-4504 F: (814) 677-5523
CELEBRATING 50 YEARS
of providing members with affordable products and essential services that simplify and empower their financial journey.
WHAT ARE SOME OF THE RELEVANT DOCUMENTS THAT SHOULD BE REVIEWED PRIOR TO TERMINATION?
• Personnel records (for example, performance reviews, attendance and disciplinary records);
• Employee handbooks and other employer policies;
• Offer letters or employment agreements;
• Restrictive covenant agreements (for example, confidentiality, noncompete and non-solicitation agreements);
• Equity and incentive compensation plans;
• Benefit plan documents;
• Immigration-related documentation;
• Collective bargaining agreements; and
• Any other documents related to the employment relationship (for example, internal complaints made by or about the employee, investigations, and leave or accommodation requests).
WHAT OTHER ISSUES SHOULD BE CONSIDERED AS THE COMMUNICATION IS DELIVERED?
• Ensure that the employer is direct and professional in delivering the message;
• Focus on the legitimate, nondiscriminatory business reasons for the termination decision;
• Provide information regarding final pay and benefits, such as the timing of the employee’s last paycheck, termination of employee benefits coverage, and a notice of Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits continuation rights;
• Provide any information regarding the services available to the departing employee, including state unemployment agencies, employee assistance program resources and outplacement services;
• Provide relevant termination documentation, including, if applicable, a termination letter stating the lawful reason for termination, a severance agreement (if applicable), a letter documenting any postemployment obligations and copies of any relevant agreements; and,
• Document the termination meeting.
Legal Considerations for Employee Terminations
Employee terminations are often complicated, and if not conducted properly, employers can open themselves up to costly legal challenges and negatively affect their business or reputation. Understanding the legal obligations of employee terminations can help employers ensure this process is conducted in a manner that minimizes legal risks and accounts for various business considerations.
Employers should carefully consider their obligations at each stage of the termination process, including:
• Pre-termination Considerations
- Establishing a lawful reason for termination; and
- Considering alternatives to termination.
• Preparations for and Conducting the Termination
- Reviewing relevant documentation;
- Considering severance benefits;
- Carrying out the termination; and
- Ensuring the return of company property.
Post-termination Considerations
- Distributing final pay and benefits;
- Complying with recordkeeping obligations;
- Notifying internal and external relevant parties;
In almost all states, employees are considered “at will,” absent an agreement to the contrary. Employers may terminate an at-will employee at any time for any lawful reason. Employers should carefully review any existing agreements with the employee, including offer letters, handbook agreements or other contracts, to ensure that there is no language that indicates employment is not at will.
Even if an employee is at will, it is considered best practice to have a clear, legitimate and non-discriminatory reason for the termination. Valid termination reasons may include performance-related or attendance issues, inappropriate behavior in violation of company policy, cost-saving measures and position elimination.
Remember: Even if the employer has established a lawful and appropriate basis for termination, employees may take legal action against employers in connection with a valid or lawful termination when other circumstances could reasonably suggest the employee was terminated for lawful reasons.
For more information, contact the MBA’s HR Services Division at 814/833-3200, 800/815-2660 or hrservices@mbausa.org
Kim Figurski, SPHR, is an HR consultant and trainer at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or kfigurski@mbausa.org.
EDUCATION. ENTREPRENEURSHIP. INNOVATION.
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Assisting Entrepreneurs in Erie, Crawford, Mercer and Warren Counties
In Partnership with Whole Life Services INC.
Dedicated IHACK SBDC Consultant
Gannon Student Led Team
Congratula t ions,
Chris Monaghan!
Manufacturer & Business Association HR Person of the Year
Congratulations to Chris Monaghan on being named the Manufacturer & Business Association HR Person of the Year! Chris’s dedication to our employees shines through in everything she does—from leading our fitness committee to enhance our team’s well-being to championing heart health through the American Heart and Stroke Association. We are incredibly proud of Chris and grateful for her unwavering commitment to making a meaningful impact both within Widget Financial and in our community.
THANK YOU SPONSORS!
PREMIER SPONSOR
The Manufacturer & Business Association (MBA) hosted its 12th annual HR Conference on Wednesday, November 6, at the Bayfront Convention Center in Erie. The daylong event featured interactive learning experiences, a wide variety of exhibitors, networking opportunities, dynamic expert speakers and great prizes. Event sponsors included: ECCA Payroll, Knox Law, Steptoe & Johnson PLLC, Widget Financial, C.H. Reams, Duncan Financial Group, VBA, Life Force Wellness, United Concordia Dental, and Gerlach’s Floral. Next year’s conference is November 5, 2025! To learn more, visit mbausa.org.
Life Force Wellness of Cranberry Township provided this year’s Wellness Spotlight.
Doug Starr of premier sponsor ECCA Payroll welcomes guests to the 2024 HR Conference.
Knox Law of Erie provided a law update, “Order in the Court: How Recent Court Decisions are Shaping the Workplace.”
The day started with a hearty breakfast sponsored by Duncan Financial Group.
A delicious lunch was served thanks to sponsor Widget Financial.
Tracy Applebee-Davis of the Redevelopment Authority of the City of Erie won this year’s MBA grand raffle prize, including $500 cash and HR swag.
Chris Monaghan of Widget Financial is presented the MBA HR Person of the Year Award by MBA President and CEO Lori Joint.
Steptoe & Johnson PLLC gave a legal brief presentation, “Employee Mental Health and Well Being.”
Leadership Impact Strategist and creator of the Impact-Driven Leadership Program Debbie Peterson, CSP, ended the day with her keynote address, “Lead Yourself First.”
MBA HR Person of the Year, Chris Monaghan (center) of Widget Financial was joined by Widget colleagues and her husband, Dan, to celebrate her award.
Morning keynote speaker Andrea Bierer kicked off the conference with her presentation on “Unleashing Your Team’s Genius.”
Attendees enjoyed stopping by the many exhibitor booths to learn about HR-related resources. Each guest was treated to a tote bag courtesy of sponsor Steptoe & Johnson PLLC.
