Business Magazine November 2022

Scott and Harry Eighmy — the brothers at the helm of American Turned Products — are proudly continuing a family legacy. Their grandfather, Harry R. Eighmy, began working in the machining industry more than 70 years ago and founded the business in 1984.

Now employing the family’s fourth generation, the company has two facilities, 100 employees and more than 90,000 square feet of manufacturing space.

“We specialize in precision machining of high-volume, highly complex components,” says Harry. “And we serve industries worldwide, including automotive, fluid power, oil and gas, and many other markets.”

The company was looking for a local bank that understood their unique situation and provided the flexibility required to thrive during ever-changing market trends.

According to Scott, “We needed a financial partner that would take the time to truly understand our complex industry, our business and our specific needs — while keeping the process simple and efficient. Marquette has been that partner.”

Harry Eighmy, co-owner and COO, left B. Scott Eighmy, co-owner and CEO, right

BUILDING FOR THE FUTURE RESILIENCY CONTINUES TO PROPEL CONSTRUCTION, REAL ESTATE INDUSTRY

While concerns about the economy are top of mind for business owners, there’s a reason that many people are looking at the construction and real estate market to gauge what’s ahead.

Despite some general uncertainty, certain aspects of commercial real estate show some resiliency, or even success. Industrial trends have shown momentum as manufacturing, e-commerce and logistics continue to drive the local economy.

In fact, a divide between construction sectors has become more visible in parts of the country as some experts say commercial and industrial building continue to boom, according to an article on Levelset.com.

“Rising interest rates have already driven the single-family homebuilding market into recession, but brisk nonresidential activity continues,” stated Associated Builders and Contractors’ chief economist Anirban Basu in a recent report.

However, it’s hard to get an accurate gauge on profit expectations due to price inflation, product availability and higher staffing costs. Until more data is available, projections are uncertain.

So far, experts believe the commercial and industrial construction sector appears to be resilient. The Associated Builders and Contractors’ Construction Backlog Indicator cites a sustainable level of projects for the future. In August, the industry held 8.7 months of backlog — a number that has doubled since last year.

According to sources, one contributor to the nonresidential industry’s upbeat outlook could be the passage of last year’s infrastructure bill, which leans in favor of commercial, industrial and infrastructure projects nationwide. The $1 trillion

bipartisan plan was set to distribute funds for projects across many sectors: roads and bridges, public transit, water and wastewater, passenger and freight rail, and airports.

Also, challenges in the housing market may be creating an even greater perception of discrepancy between the two areas of construction, with higher mortgage rates weighing heavily on demand — or lack thereof — for new housing in parts of the country.

Ken Simonson, chief economist for the Associated General Contractors of America, is noted as referencing two indexes — the Architecture Billing Index and the Dodge Momentum Index — that provide insight into billings and backlogs, and each source shows a strong commercial outlook.

The Architecture Billing Index indicates construction spending on new, nonresidential buildings will be increasing.

“It’s a very favorable indicator for continued growth in nonresidential building construction,” Simonson reported.

In this edition of the MBA Business Magazine, we’ll explore some of tri-state region’s leading resources in the construction and real estate market, such as Marsh Schaaf Attorneys. For 125 years and counting, the law firm has been assisting employers with their real estate and development needs, and much more with its wide range of legal expertise. In addition, we’ll talk to Pete Austin of E.E. Austin & Son Inc. about his thoughts on the construction industry and the exciting projects that his firm has in the works.

Plus, don’t miss exclusive coverage of this year’s MFG Day and Annual Event or the recent graduates of the Association’s training courses.

For more information about the MBA and its members or services, visit mbausa.org.

THE SUPPORT YOU NEED!

Building Upon 125 Years Of Legal Expertise

It takes a strong foundation to succeed in business, and for 125 years and counting, Marsh Schaaf Attorneys has been a trusted partner of business owners for legal expertise.

From business to family matters, Marsh Schaaf and its distinguished attorneys have helped its clients through many of life’s ups and downs — everything from wills and estate administration, to assisting business owners with getting their companies started, expanding their operations, dealing with the unexpected and planning for what’s ahead. The firm maintains an active business and corporate law practice, representing sole proprietorships, partnerships, and both large and small corporations and limited liability companies for other entities for small businesses and real estate investors. These clients — a variety of mom-and-pop shops, manufacturers, regional banks, realestate companies and others — can be found in Erie, Crawford, Venango, Mercer, Warren, Forrest, McKean, Potter and Elk Counties, stretching from Erie to Pittsburgh along the Interstate 79 corridor.

“As businesses have changed, so has our firm,” explains Partner Eugene Sundberg Jr., who has been practicing law for the past 30-plus years. “We’ve grown with our clients along the way.”

Indeed, the growth and longevity of Marsh Schaaf Attorneys is a testament to its legal team. The firm boasts a reputable list of partners, including

“Ed Smith is knowledgeable and has been trusted throughout our agency now for the past 25-plus years. I would highly recommend Ed and Marsh Schaaf Attorneys for all your legal needs. We appreciate their continued support throughout the entire Erie community.”

Sundberg and his brother Kurt, Atchley Holmes, Of Counsel Charles Agresti, Michael Agresti, Edwin Smith, Gary Skiba, Jim Marsh (who has 50 years of law experience), Kevin Monahan, Bud Stark, Rachel George, Steven George, Thomas Myers, and a support staff of 15 professionals, many with 20 or more years of service, ready to support clients’ needs.

prestigious law firms in the region thanks to the strong foundation set in 1897. At that time, Ritchie T. Marsh and Charles C. Eaton founded the distinguished law firm at Seventh and State Streets then known as Marsh and Eaton.

Over the years, the firm expanded with the addition of partners John A. Spaeder and James E. Marsh. After World War II, Robert Spaeder and Will Schaaf joined the practice, which became known as Marsh Spaeder Baur Spaeder & Schaaf. By 1985, the firm relocated from the Baldwin Building to its present-day offices at 300 State Street near the bustling bayfront of downtown Erie and a hub of recent revitalization efforts.

In 2020, the firm again made another notable move with a name change to the shorter Marsh Schaaf, LLP. “We became more than just the five founders,” explains Sundberg,” and we wanted to convey that we were changing and developing with the community that we were serving.”

Today, Marsh Schaaf Attorneys considers itself right sized — not too large or too small — to stay nimble, attentive and attuned to its clients’ needs. The firm’s attorneys can respond effectively to any situation for which an individual or company may require legal services.

The firm also considers itself to be extremely reasonable and fair when it comes to billing — a big difference that can be a huge cost-savings for clients. “Many times, our clients will never see emails, text message or short communications reflected on their bills,” says Partner Michael Agresti. The firm also does not charge or pass on to clients copying, postage or long distance phone calls.

The firm also has been active in recruiting new talent, recently welcoming a new associate Julia Gromacki, an Erie native who earned her Juris Doctor from Barry University and Master of Laws in dispute resolution from Pepperdine University, Caruso School of Law, and clerked for Erie County Court of Common Pleas Judge Erin Connelly Marucci.

“At Marsh Schaaf, we want to make sure that the attorneys who join our firm are committed to this area — that they have family and business ties to northwest Pennsylvania,” says Sundberg.

A Proud History

Marsh Schaaf Attorneys has built its practice as one of the most respected, reliable and

Agresti, for one, has been one of the top attorneys in the region, helping clients with their real estate matters and more. “We try to fashion ourselves as outside general counsel,” he explains. “There are a lot of businesses that need somebody they can call at any time, day or night, weekends, text messages because their business is important. If they have a labor or customer issue, a real estate issue or something personal, they can call us because we are their family lawyer too.”

Marsh Schaaf Attorneys is indeed a law firm that prides itself on representing its clients with the highest standard of legal service for the long term. “We’ve been here for 125 years,” says Sundberg, “and we’re making sure that we’re here for another 125 years.”

Founded in 1897 in Erie, Pennsylvania, Marsh Schaaf Attorneys is one of the top law firms in northwest Pennsylvania, providing legal expertise to individuals and businesses.

Address: 300 State Street, Suite 300 Erie, PA 16507

Phone: 814/456-5301

Website: marshlaw.com

Marsh Schaaf’s legal team has considerable expertise in all areas of law. Shown here are (front row, from left): Jim Marsh, Rachel George, Michael Agresti, Kevin Monahan, Bud Stark, Julia Gromacki and Kurt Sundberg. Back row, from left: Ed Smith, Atchley Holmes, Gary Skiba, Gene Sundberg Jr., Thomas Myers and Steven George.

Partner Michael Agresti is one of the firm’s top attorneys. He has broad experience that has allowed him to assume the role of outside general counsel for businesses with frequent legal issues.

— Diane Lazette, Community Shelter Services

“Michael Agresti has been a tremendous asset to our business and guided us through mergers and acquisitions, investments, partnerships and real estate purchases. He and his team have been an important part of our success and growth.”

— Charles “Chuck” Peters, Altair Real Estate Services

“I would highly recommend Michael Agresti and the Marsh Schaaf team as they are trusted advisers and an integral part of the success of our organization.”

— Jason Pero, Brick & Mortar/Pero Real Estate

E.E. Austin Exec Discusses Industry, Projects and More

Throughout the world, construction is an important sector of the economy. It often is the first indicator of the health of the economy and its potential growth. Here, Pete Austin, vice president of E.E. Austin & Son, Inc., one of the oldest and largest general contractors in the tristate region, discusses the state of the construction industry and the exciting projects that the firm is working on.

For 116 years, E.E. Austin & Son has been providing quality construction services in northwest Pennsylvania and southwestern New York. Tell us how the company got its start. E.E. Austin was a farmer in Phillipsville, Pennsylvania, a small town between Erie and Wattsburg. In 1906, E.E. moved with his wife, his son, and his three daughters from the farm to Erie to assure his children a good education. E.E. brought a couple of teams of horses with him and opened his business at 731 E. 6th Street. His headquarters served as his house, shop, and warehouse. E.E. used his team of horses to excavate roads, and he hired carpenters to build houses. E.E.’s primary focus became building homes until he was joined by his son, Cle (Clemont Robert Austin I, not to be confused with current E.E. Austin & Son Chairman Clemont Robert Austin III).

Cle attended Carnegie Institute of Technology and graduated with a degree in Building Construction in 1914. After serving as a building inspector for Navy warehouses and barracks in Norfolk, Virginia in World War I, Cle returned to Erie in 1919. Upon Cle’s return, E.E. Austin & Son started its direction of building commercial projects, and eventually commercial projects became its sole construction focus. Cle also opened up a Ready Mix concrete plant in

1930 and continues to operate as Austin ServAll Concrete.

The firm is currently on its fifth generation of the Austin family. Who is involved in the day-to-day operations today?

Cle Austin (Clemont Robert Austin III) stepped down as company president at the end of 2021 after 45 years in that role. Cle remains the chairman of the Board and continues to come into the office on a reduced work schedule.

Chuck Jenkins, a 40-year veteran of the company, stepped into the president’s role and became the first company president not named Austin. I represent the fifth generation of the Austin family as vice president at the company.

How would you describe the state of the construction industry presently?

The construction industry continues to be robust in our region. We see a good mix of public and private projects underway in the Erie area, and good opportunities to bid work in the future. Like many industries, we face frustrations with supply chain issues and delays, but the demand for commercial construction projects is encouraging.

What are some of the projects you are working on?

Some of the larger projects we are working on include a substantial addition

and renovation at Fairview High School, Phase 3 Improvements at Richard S. Wasielewski Water Treatment Plant, Phase 2 Renovation at NW PA Collegiate Academy, Additions and Renovations at New Motors, Dunkirk Central School District Phase 2 Facility Upgrades, Erie WWTP Headworks Improvements, Erie WWTP Treatment Facility Rehab, General Trades at Penn State Behrend Erie Hall, and General Trades at the Erie Children’s Museum Addition and Renovation.

How would you describe “The Austin Difference”?

The Austin Difference is based upon the main rule that we live by as a company. Do the right thing all the time. We hang our hats on our integrity, technical competence, and consistent quality. We have professional project managers, knowledgeable superintendents and skilled workers. When Austin is on the job, the owner can worry about running their business and let us worry about their construction project. That’s the service we deliver; we’ll take care of it.

For more information about E.E. Austin & Son, visit eeaustin.com.

Congratulations to John and Nick, the Best of the Best!

MacDonald Illig is pleased to announce that US News & World Report Best Lawyers® has recently recognized attorney John Draskovic as the 2023 “Lawyer of the Year” for Worker’s Compensation Law in Western Pennsylvania and has recognized attorney Nicholas Pagliari as the 2023 “Lawyer of the Year” for Bankruptcy Law in Western Pennsylvania.

Only a single lawyer in each practice area and designated metropolitan area is honored as the “Lawyer of the Year,” making this accolade particularly significant. The attorneys and staff of MacDonald Illig congratulate John and Nick on their receipt of this well-deserved distinction.

Call: (814) 870-7600 or visit: macdonaldillig.com

MacDonald, Illig, Jones & Britton, LLP 100 State St. Suite 700, Erie, PA 16507

John Draskovic

Pagliari

It Pays to Pay Attention to Payment Provisions in Construction Contracts

work, but must notify the contractor of its intent to do so either within the timeframe set forth in the contract or within 15 calendar days from receipt of the payment application. Under CASPA, the owner may withhold progress payments per the terms of the contract in the event of deficient work, but must provide notice to the contractor in writing within 14 calendar days of such deficiency; failure by the owner to do so waives the right to withhold payment by the owner.

Retainage

Michael Micsky is an associate at MacDonald Illig Attorneys and a member of the firm’s Banking & Real Estate and Business Transactions Practice Groups.

Often overlooked in construction contracts are the legal provisions surrounding the “non-business” aspects of progress payments and retainage terms. Not surprisingly, disputes surrounding these two provisions frequently arise between the parties involved in construction projects.

Pennsylvania has two applicable statutes on payment in construction contracts: the Pennsylvania Prompt Pay Act (“PPA”) (which applies to contracts with a governmental agency (with some exceptions) for public construction or improvements in excess of $50,000) and the Contractor and Subcontractor Payment Act (“CASPA”) (which applies to all contracts for commercial construction and residential construction for more than six units simultaneously). Both the PPA and CASPA establish default payment provisions, rules and penalties for non-compliance.

Progress Payments

Under both the PPA and CASPA, the parties retain the ability to freely contract for the desired progress payment schedules and values. If, and only if, a contract subject to the PPA does not contain any provisions surrounding progress payments, payment must be made by the governmental agency to the contractor within 45 calendar days from the date the governmental agency receives the application for payment from the contractor.

Similarly for contracts to which CASPA applies, if the contract is silent on progress payments, the owner must pay the contractor within 20 days from the later of: 1) the end of the billing period (the end of the calendar month in which the invoiced work was performed), or 2) after the delivery of the contractor’s invoice. General contractors have similar obligations under both the PPA and CASPA to their sub-contractors, with shorter timeframes and additional requirements on disclosure of payment terms found in the prime contracts.

Withholding Payment for Deficient Work

Under the PPA, the governmental agency may withhold payments for deficient

In contracts where CASPA controls, the parties remain free to contract retention amounts and step-downs; however, final release of retention must occur within 30 days from final acceptance and contractors can have retainage released by providing a bond valued at 120 percent the remaining project price. The PPA strictly limits the amount of retainage allowed during the course of construction: 10 percent until the project is 50 percent completed; then 5 percent until substantial completion. Substantial completion is a defined term under the PPA, and the governmental agency’s design professional’s approval is required. Once substantial completion is met, retainage is capped at 1.5 times the amount of work left on the project.

Penalties

Overdue progress payments under both the PPA and CASPA accrue statutory interest, and the PPA allows an additional 1-percent penalty interest if the withholding of payments is found to be in bad faith. Furthermore, the court can award attorneys’ fees and costs to the substantially prevailing party (CASPA) or to the prevailing party if there was an element of bad faith (PPA).

Paying attention to these payment provisions during contract negotiation and project execution is essential. Failure to do so may have you paying much more than anticipated for your project in penalties, attorneys’ fees, and interest.

For more information, please contact an attorney in the Construction or Real Estate Practice Groups at MacDonald Illig at 814/870-7600 or email info@mijb.com.

MICRO MOLD UNDERGOES RENOVATIONS, INVESTS IN NEW EQUIPMENT

Micro Mold, a precision mold maker headquartered in Erie, Pennsylvania, is making room for a new Yasda YMC650 high speed 5-axis milling center along with a 3R Workpartner automation cell. The additional 5-axis milling machine is accurate to 1 Micron (0.000040”), ideal for high volume, ultra-precision tooling work.

Chris Hanes, Micro Mold general manager, comment ed, “The new 5-axis mill will be used for electrode manufacturing as well as to finish hard mill applica tions. In addition to efficiency gains due to reduced setup requirements, the new Yasda will offer improved accuracy, the ability to manufacture components of increased complexity, and capacity for larger workpiece sizes over the 3-axis mills currently employed.”

This latest investment reflects the continuous reinvest ment efforts the company strives to maintain in order to keep pace with the ever-changing and ever-improv ing technology advancements the industry has to offer. It also comes as a direct response to sister companies, Plastikos and Plastikos Medical, venturing into new markets since the beginning of the pandemic such as fluid connection for vaccine delivery as well as testing & diagnostics. With new portfolio growth comes new challenges that, in turn, inspire strategic reinvestment phases that include additional machinery to expand tooling and mold making capabilities.

Hanes continued, “A significant renovation project was also undertaken to repurpose existing shop space to accommodate the new equipment. A climate-controlled workspace has been created to properly house the new equipment and maximize its performance. The recent renovation project has also freed up space for future growth and equipment investments.”

Working with both short- and long-term strategic growth plans in mind continues to be a successful strat egy, especially when considering Micro Mold’s organic growth throughout the past five years. Overall, Micro Mold has grown 120 percent between FY18 and FY21. In retrospect, this is especially fortunate when one considers the time period and the effect COVID-19 has had on countless businesses and industries on a local, national, and global scale. Today, Micro Mold is on pace to grow an additional 15 percent from FY21 to FY22.

Ryan Katen, Plastikos Medical general manager, further adds, “This interior renovation project involved downsizing our grind room by 50 percent. This was a little bittersweet for me to remove 6 surface grinders from service knowing how many pieces and parts they created during their many years of use at Micro Mold. However, the removal of those machines gives us the opportunity to equip ourselves with a brand new, state-of-the-art EDM cell. It also will free up additional shop floor space for future investments in the latest technologies.”

Micro Mold & Plastikos specialize in precision mold design & fabrication as well as tight-tolerance injection molding.

For more information, visit plastikoserie.com.

LAVERY BREWING COMPANY PLANS EXPANSION IN ERIE

Lavery Brewing Company has announced the expansion of its main location at 128 W 12th Street in Erie.

The Erie-based brewery has purchased “Hungry Howie’s” a former pizza shop/restaurant directly next to the brewery.

With the new 2,200-square-foot expansion, Lavery will add about 56 seats to its overall taproom space as well as an expanded menu. Music will also play a big part of this added space, and the brewery will be adding a stage to provide more weekly entertainment.

Lavery will soon begin construction to update the new space, and the wall that separates the two spaces will be removed as well. The brewery is currently targeting a grand opening of February 2023.

For more information, visit laverybrewing.com.

ACE WIRE SPRING & FORM CO., INC.

MAKES PITTSBURGH’S FAST 50 LIST

Ace Wire Spring & Form Co., Inc., located in McKees Rocks, Pennsylvania, has been named to the Pittsburgh Business Times’ Fast 50 list of Pittsburgh’s fastest-growing companies. The Fast 50 are privately held, Pittsburgh-based companies ranked by revenue growth between 2019 and 2021.

Ace Wire Spring & Form, an industry leader in the manufacturing of Compression Springs, Extension Springs, Torsion Springs, and Wire Forms, has been family owned and operated for over 83 years.

In 1939, Ace Wire Spring & Form started out in the industry with a small coiling machine making garter springs by hand. The owner, Joseph Vodvarka, was a machinist, working hands-on in the upstairs room of his house, which was converted into a small office / shop to produce the garter springs needed at the time.

Through the years, Ace Wire Spring & Form grew, and the belief of family was always a part of it. In 1976, Joseph Vodvarka’s daughter, Linda, and her husband Rich Froehlich, bought the company and continue to keep Ace Wire Spring & Form a family owned and operated business. The Froehlichs have a strong belief in family and carry over that belief into the Ace Wire Spring & Form culture when doing business. Customers benefit from this by receiving personalized customer service, engineering assistance, and a quality final product suited to meet their needs. In turn, Ace Wire Spring & Form thanks its customers for making it possible for the company to celebrate 83 years in business.

For more information about the Fast 50, visit bizjournals.com. For more information about Ace Wire Spring & Form, visit acewirespring.com.

DOWNLOAD THE MBA’S FREE TIME-CHANGE POSTER

Daylight-Saving Time ends at 2 a.m. Sunday, November 6. Remind your team by downloading the MBA’s FREE time-change poster from mbausa.org and post in highly visible location at your facility!

Micro Mold in Erie, Pennsylvania, is acquiring a 5-axis milling center that will enhance its manufacturing capabilities.

NORTHWEST BANCSHARES, INC. AND NORTHWEST BANK NAME TORCHIO PRESIDENT AND CEO

Northwest Bancshares, Inc. (Nasdaq: NWBI) and Northwest Bank recently announced that Louis J. Torchio has been appointed president and chief executive officer of both companies, effective immediately.

Torchio joined Northwest Bank in 2018, most recently serving as senior executive vice president, Retail Lending and Business Banking.

Torchio brings more than 31 years of experience in the banking industry to his position as president and chief executive officer. Prior to joining Northwest, he held senior leadership and executive committee positions at both large regional and community banks, including the former Charter One Bank, Bank One and Mellon Bank.

At Northwest Bank, Torchio led the transformation and scaling of the residential lending and indirect lending groups, which generated significant fee income and balance sheet growth. Additionally, Torchio launched an initiative to further develop and expand the business banking and Small Business Administration (SBA) lending divisions.

Torchio is a graduate of Fairmont State University where he earned degrees in Business Administration and Computer Science. In addition, he earned a Master of Business Administration in Finance and Financial Services Management at Franklin University.

Also, effective immediately, William W. Harvey Jr., who served as interim president and CEO since the passing of Northwest’s Chairman, President, and Chief Executive Officer Ronald J. Seiffert on May 24, 2022, has been named chief operating officer in addition to his responsibilities as chief financial officer. Prior to his assuming the position of interim president and CEO, Harvey served for 20 years as CFO. He will continue in this capacity. Harvey has been employed by Northwest Bank since 1996.

Both Torchio and Harvey have been appointed to the Northwest Bancshares, Inc., and Northwest Bank Board of Directors. Timothy B. Fannin, who has served as interim chairman of the Board of Northwest Bancshares, Inc., and Northwest Bank since the passing of Seiffert, will continue in the role as chairman of the Board.

In announcing the appointments, Fannin said, “Lou’s strong familiarity with our organization and depth of industry experience make him the ideal person to lead Northwest Bank into its next era as a growing, successful and independent

financial institution. As we continue to execute our strategic plan, the board of directors and I are excited about what the future holds for Northwest under the extremely capable leadership of Lou, Bill, and the rest of our Northwest executive leadership team.”

Northwest Bancshares, Inc. (Nasdaq: NWBI) is a $14 billion asset financial services company headquartered in Columbus, Ohio, and the parent company of Northwest Bank, a Pennsylvania chartered savings bank headquartered in Warren, Pennsylvania.

HOWARD INDUSTRIES ANNOUNCES PROMOTIONS

Howard Industries, a leading wholesale manufacturer of exterior and interior architectural signage located in Fairview, Pennsylvania recently announced two promotions.

Jen Miazga has been named national sales manager. Miazga joined Howard Industries in 2004 and has served in various positions. She started within the Vinyl Graphic department before moving into sales, where she quickly advanced into sales management as PRIME program director. Now, as national sales manager, Miazga will be leading the overall company sales process.

In her new role, Miazga will be tasked with implementing and coordinating new sales programs, managing sales staff and influencing marketing as the company expands its overall business development efforts. Her focus will be to ensure that the Sales and Marketing departments are reaching all objectives, using key sales metrics and industry trends to expand their identification and wayfinding markets.

Michelle Lohrer has been named PRIME program director. Lohrer joined Howard Industries in 2018 as a project specialist within the company’s Sales Department. With her ability to quickly understand the interior and exterior product lines, Lohrer expanded her role to become one of the primary points of contact for many of Howard Industries’ high-profile clients.

In her new role, Lohrer will be tasked with the coordination of large sign packages from the initial survey phase to the final signage installation process. She will be working closely with all aspects of the company in creating and supporting new clients and their signage requirements.

KNOX LAW WELCOMES NEW HIRES TO PITTSBURGH, ERIE OFFICES

Edward C. Spontak has joined Knox McLaughlin Gornall & Sennett, P.C. as Counsel.

With over 20 years of experience in the Pittsburgh legal market, Spontak will represent clients in litigation, estate planning & administration, business & tax, and real estate matters out of the firm’s Pittsburgh office.

Spontak’s litigation experience includes complex matters regarding commercial and contract disputes, construction, environmental issues, and estate, guardianship and fiduciary issues. His estate planning & administration experience includes family trusts, credit shelter trusts, special needs trusts, insurance trusts, charitable remainder trusts, guardianships, and elder law matters. His business & tax experience includes business formation, succession planning, and issues concerning 501(c)(3) exempt status for nonprofit organizations. His real estate experience includes land use and oil & gas matters.

Spontak, who resides in Pittsburgh, is active in the Allegheny County Bar Association and has volunteered in its Will for Heroes program.

In addition, Patricia Kennedy has joined the Knox firm’s Erie office as Counsel.

As a member of the firm’s Governmental Practice Group, Kennedy focuses her practice on providing legal services to school districts, municipalities and public authorities.

She has 34 years of legal experience, including work with local governments. She served in various capacities for Erie County for 26 years, concluding with an 11-year appointment as chief public defender. A native of Edinboro, Kennedy is a graduate of Edinboro University of Pennsylvania and of the Dickinson School of Law. She is a member of the PennWest University Council of Trustees.

At Knox Law, Spontak and Kennedy join a team of more than 40 attorneys that has been providing quality legal services to businesses, governmental entities, nonprofit organizations, insurance companies, financial institutions, individuals and families for 65 years.

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A Transformation is Under Way in Erie’s Industrial Corridor

Little by little, bulldozers and construction crews are changing the landscape of Erie’s West 12th Street industrial corridor.

The former Erie Malleable Iron building, once a symbol of the city’s manufacturing heyday, is being cleaned up, removed, salvaged and rebuilt.

But an even larger transformation is in the works behind the scenes, as the Erie County Redevelopment Authority plans for the future of the site — Iron Works Square, a modern campus with 180,000 square feet of build-to-suit space that fits the needs of today’s employers.

“We’re open for business,” says Tina Mengine, ECRDA’s chief executive. “We’re lining up companies now to be part of the new West 12th Street.”

Out with the Old The hulking former EMI factory has long been one of the most recognizable sites on the old West 12th Street corridor. For generations, the brick behemoth was home to foundry workers — both blue-collar laborers and white-collar office staff. After the final piece of the factory closed several decades ago, the property sat silent, awaiting its future.

The Erie County Redevelopment Authority purchased the property as is in 2021, and immediately launched an extensive — and necessary — cleanup effort. As

decades of industrial detritus were hauled away, a new future emerged for the former EMI site, one that melds modern needs with a proud past. Parts of the block-long building were unsalvageable; that was an inescapable fact. But other portions of the brick structures were bunker-solid and just in need of some rehabilitation to be ready for new life.

The Redevelopment Authority’s ideas for the site finally came into a focus: Not just an office building, old or new, but an innovative business park with space for Class A offices, light industry, tech startups, and more. Iron Works Square will be a seamless blend of old and new, all situated in a parklike setting on the busy, highly visible West 12th Street.

Ready for the New

It might be months until passers-by can see evidence of the change that Iron Works Square is bringing to Erie. After all, construction takes time. But that’s just the exterior, anyway. The real transformation is already happening, as ECRDA works with businesses to create their spot on the new campus — less visible work, but ultimately essential to the success of the project.

“One big advantage we offer with Iron Works Square is, of course, the capability to custom build,” Mengine says. “For local companies looking to expand or relocate,

or for outside companies looking to grab a foothold in the Erie market, the ability to create their dream space from the ground up is an extremely attractive opportunity.”

Also attractive: A key location close to interstates, rail lines, and a port, making it easy to bring supplies in and send goods out. A worker-friendly atmosphere with open space, public art, a convenient commute. A tech-savvy, business-friendly environment with shared conference and training spaces, fully integrated infrastructure, and broadband access.

It’s no surprise to ECRDA that the project has already generated interest from prospective tenants. The potential of the former foundry to be an innovative business park — one that serves the needs of modern businesses — was the goal from the beginning. Now, with nearly $9.5 million in local, state, and federal funding, ECRDA is seeing the Iron Works Square vision become a reality.

“We know we’re paying tribute to our industrial past,” Mengine says, “but we’re also building for the future. Iron Works Square, and the businesses that shape it, will be ushering in a new era for Erie’s economy.”

Looking for space? Call ECRDA for information about build-to-suit space at Iron Works Square, contact ECRDA at 814/480-0337.

Tina Mengine is the chief executive of the Erie County Redevelopment Authority.

Iron Works Square will be a modern campus with 180,000 square feet of build-to-suit space that fits the needs of today’s employers.

Erie

UPMC Hamot

Raymond M Blasco, MD Memorial Library

VictoryatLast!

Corporate Net Income Tax Rate is Finally Reduced

Eileen Anderson is the director of Government Relations at the Manufacturer & Business Association. Contact her at eileenanderson@ mbausa.org or 412/805-5707.

For one day, let’s luxuriate in the start of a phase-down for Pennsylvania’s Corporate Net Income Tax (CNIT) rate. Our 9.99 percent CNIT — which has been the highest flat rate in the country — has always been a “stop sign” for businesses considering locating to Pennsylvania.

Beginning January 1, 2023, the tax rate will decrease one percentage point to 8.99 percent. Each year thereafter, the rate is scheduled to decrease 0.5 percentage points until it reaches 4.99 percent at the beginning of 2031. The full reduction takes PA from the highest flat CNIT rate in the country to the sixth lowest and marks the first change in the rate since 1995.

It is so easy to say, “Well, that’s good but now we need the Net Operating Loss percentage limitation to be phased out,” and “Yes, but now we need permitting reform.” True, but stop for one moment and enjoy a victory lap.

Take a deep breath, count to ten and visualize all of the invisible work of the MBA Government Affairs Department and many other advocacy organizations who have worked tirelessly, putting in hours and hours of strategy meetings and

meetings with lawmakers to achieve the rate reduction.

If you have ever wondered, “Does advocacy really work? Is there a return on investment (ROI) or is it just like throwing money down a rabbit hole?” Now you know the answer. Yes, advocacy does work. It is the intangible benefit of an MBA membership.

Personally, it was a challenge to make the switch from running a small business to advocating for a pro-business environment. Advocacy is not like running a business where there is a profit and loss statement to review, inventory to count and a ROI (sometimes). Those are concrete metrics. Working on legislation is much different. The results are not immediate or tangible; they are invisible. Advocacy requires patience, the ability to take the long view, working for what can be done politically known as “playing small ball,” the ability to compromise, and above all, persistence.

The MBA and, previously, SMC Business Councils have worked for years with the Compete PA Coalition where reduction of the state’s corporate net income tax rate has been at the top of their policy agenda.

According to Carl Marrara, executive director of the Pennsylvania Manufacturers Association, “This is the first major business tax reform package in decades.”

“In 1995,” Marrara continued, “then Governor Tom Ridge signed a tax code that lowered PA’s tax rate from 11.5 percent to the current 9.99 percent. As more overseas operations are being

reshored, states are competing for business talent, capital and investment.”

You may wonder why the CNIT rate reduction took so long and how was it finally accomplished. State lawmakers worked in a bipartisan manner and Governor Tom Wolf did not insist on attaching provisions that would erase the benefits of the CNIT reduction. Here’s how the vote played out for this year’s tax code, House Bill 1234, part of the budget, that included rate reduction: The House voted 184-16 and Senate 38-12.

Taxable Year Tax Rate

• January 1, 1995 through December 31, 2022: 9.99 percent.

• January 1, 2023 through December 31, 2023: 8.99 percent.

• And on…

• January 1, 2030 through December 31, 2030: 5.49 percent.

• January 1, 2031 and each year thereafter: 4.99 percent.

To increase your understanding of how the MBA Government Affairs works for members, know that we join with several coalitions to accomplish legislative goals.

The Power PA Jobs coalition opposes Pennsylvania’s entrance into the Regional Greenhous Gas Initiative (RGGI), The PA Coalition for Civil Justice Reform does as its name implies, and Stop New Energy Taxes lobbies against severance taxes.

The MBA partners on occasion with Pittsburgh Works Together, the Greater Pittsburgh Chamber, PA Chamber, NFIB, the Commonwealth Foundation and others.

Our goal is always to do what is in the best interest of you, our members.

For most family businesses, planning for succession is a tough and critical challenge. Yet succession planning can also be a great opportunity to create a multigenerational institution that embodies the family’s values for generations to come.

Attorneys at Knox Law provide guidance and counsel helping you to address issues related not only to ownership succession, but also concerns involving estate planning, tax planning, workforce, real estate and intellectual property — planning that will deliver lasting value to your family.

Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | North East | Pittsburgh | Jamestown, NY 814-459-2800 | www.kmgslaw.com

Employer Medicare Program: Medicare Made Easy for You and Your Employees

Over the past decade, the American workforce has been aging with Baby Boomers coming into their retirement years. Over 10,000 Americans per day are turning 65 and many continue to work. As such, many employers are experiencing rising health insurance costs along with struggling to provide the right advice and support to aging employees due to the complexity of Medicare and Social Security.

The Manufacturer & Business Association (MBA) has developed a unique, value-added program, in conjunction with its partner, MPC Insurance Group. This partnership provides an education program to employers for their employees who are approaching or are already at Medicare age (generally 65 years old). The program provides education, private one-on-one consultation with the Medicare-eligible employee, and health plan selection and enrollment services. These services are no cost to the employer or their employees as members of the MBA.

With the rising cost of health care, many employers have been faced with having to reduce benefits and with increasing the employee’s contributions to health insurance. The MBA Medicare program allows individuals to decide if they want to go onto Medicare, and results in a win-win for the employee and the employer. The employee gets richer benefits at a lower cost, and the employer saves money on their group health plan — in addition to an employee relations win by providing a resource for the Medicare-eligible employee.

Medicare has numerous rules and regulations and is at best, confusing, but often misunderstood. Having trained professionals assist your organization not only reduces the burden from human resource management, but also provides a valuable service to employees who often have given many years to the organization. Allow the MBA and MPC Insurance Group, a team of highly trained professionals, to assist your Medicare-eligible employees to make the right decision for their health insurance coverage needs.

For more information, contact the MBA Insurance Division at 814/833-3200 or 800/815-2660.

Michael Fiaschetti

is the president of MPC Insurance Group, a Harrisburg, Pennsylvania-based insurance and advisory service company licensed to sell Medicare Advantage plans, Medicare Supplement plans, prescription drug plans and other ancillary health and life products. For more information, visit mpcins.com.

OFFICE LAYOUTS CHANGE WITH RETURN TO WORK

For some employees, the work-from-home era has come to an end — but that doesn’t mean they’re willing to accept the office as it was, according to an article in Entrepreneur

When it comes to office layout, for example, many workers are rebelling against open-concept designs that gained traction during the “hot-desking” moment, per The Wall Street Journal (WSJ).

Instead, they’re embracing an old-school but highly functional approach: walls, or, at the very least, cubicles.

Proponents of the “open” office setup might tout benefits like collaboration and transparency, but research confirms that high noise levels are as detrimental as they seem, causing physiological stress and heightening negative moods by 25 percent.

People want the privacy and personal space they’ve come to expect at home. In fact, Kristi Buchler, principal at Interior Architects, which helps companies plan workspaces, told the WSJ that “seated privacy” is the latest buzzword in office design.

That doesn’t mean the drab, fully isolated cubicles of the past: Buchler says that many new designs use low walls topped with glass to provide employees “solitude when in their chairs,” but make it easy for them to “pop up” and see other colleagues in the space.

Another trend that’s been cropping up? Collaborative versus quiet zones. It’s a best-of-bothworlds approach that even WeWork, a leader in open-office planning, sees value in.

U.S. CONSTRUCTION INDUSTRY SEES

GLOBAL LABOR SHORTAGE, SURVEY SAYS Construction’s skilled-labor shortage is a well-known and serious concern for the U.S. construction sector, but the extent of the problem shows issues that need to be resolved right away if the country is to satisfy rising construction demand. Associated General Contractors of America (AGC) and Autodesk conducted a workforce survey, and the results show that 93 percent of construction companies report having positions available they are trying to fill, and 91 percent of those firms are having trouble trying to fill at least some of those positions, especially among the craft workforce that accomplishes the majority of onsite construction activities.

According to Ken Simonson, chief economist at AGC, the most common rationale for problems filling positions, mentioned by 77 percent of employers, is that available individuals lack the skills required to work in construction or cannot take a drug test. According to the national employment figures, the construction sector’s unemployment rate as of July was actually slightly lower than that of other sectors, he added. That’s remarkable in a sector where workers aren’t always kept on the payroll once a project is completed. With a 3.5-percent rate, virtually no one with prior construction expertise is actively seeking employment in the industry.

WHAT ARE SOME EXAMPLES OF MENTAL HEALTH EDUCATION?

Some good examples are:

• Training managers to spot employees who may be struggling with their mental health.

• Providing employee communications that address and help explain mental health issues.

• Offering seminars or educational sessions that explain signs of mental health issues and what to do about them.

Employers should consider what resources or solutions may best serve their employees in the new year.

WHAT IS AN EMPLOYEE ASSISTANCE PROGRAM (EAP)?

An EAP is an employee benefits program provided by a company to help employees resolve issues that could impact their life and the lives of their family. It addresses personal issues before they interfere with work performance, such as stress depression, anxiety, substance abuse, parenting issues, martial problems and others.

The employee assistance program is one of the top benefits employers offer in North America — for a good reason. Employers know that the organization benefits when employees aren’t struggling with overwhelming personal stressors.

Do You Know the Top Five Trends in Mental Health Benefits?

Mental health has been a hot topic thanks to the COVID-19 pandemic. Over the past two-plus years, so many people have experienced issues such as burnout, depression, anxiety and substance addiction.

In fact, 40 percent of U.S. adults said they have struggled with mental health or substance abuse during the pandemic, according to a Jellyvision survey.

In 2022, mental health continues to be a top concern for workplaces, and employers are taking notice. Over 30 percent of employers have added new mental health benefits within the past year, according to McKinsey and Company. They also may want to consider these trends:

1. More Mental Health Programs

Employers should expect to see more mental health programs cropping up. The vast majority of employers (90 percent) said they would be increasing their investment in mental health programs, according to a Wellable Labs survey.

2. Increased Scheduling Flexibility

According to a Lyra survey, nearly 70 percent of employees said work-from-home days and flexible scheduling options are “very important.” That’s because having work flexibility allows employees to better manage their personal responsibilities, creating a better work-life balance and contributing to overall mental health.

3. Expanded Virtual Doctor Visits

Telemedicine is shown to be so popular that 80 percent of employers intend to invest more in the solution this year, according to Wellable Labs. Employers should consider how providing access to ondemand health professionals may benefit their employees.

4. Greater Mental Health Education

While mental health concerns have risen dramatically in recent years, education on such topics hasn’t always kept pace. Employers can expect a greater focus on education and resources in this area.

5. Improved Focus on Individuals

Over 50 percent of employees reported experiencing burnout in 2021, according to Indeed. Employers are trying to curb this trend by checking in with employees more frequently about how they’re feeling. Instead of annual or quarterly one-on-one meetings, managers are being encouraged to touch base more regularly. Having this candid communication can help address mental health issues before they get worse.

To learn more about mental health resources in the workplace, contact the MBA’s HR team at 814/833-3200, 800/815-2660 or email hrservices@mbausa.org.

Rose Bruno, PHR, SHRM-CP, is an HR consultant at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or rbruno@mbausa.org.

The Manufacturer & Business Association (MBA) recently presented plaques to graduates of its certification series, including Excel, Word and Supervisory Skills. For more information about upcoming training courses, visit mbausa.org.

Specialist

Specialist

Series

From left: Shannon Goodwin, Walker Filtration Inc.

left: Christine Start and Aisha Barnes, JTM Foods LLC.

Certified

left: Tyler Eberle, Plastek Industries; Rich Dvorak, Warren Steel Products Inc.; Maura Franks, Eriez Manufacturing; Ben Heasley, Polymer Molding; and, Benjamin Fatica, Plastikos.

From left: Nikki Crissman, Essentra Components; Heather Snyder, JTM Foods LLC; Brian Silvis, JTM Foods LLC; and, Bonnie Jo Billen, Erie Insurance Group.

From left: David Wheeler, C & J Industries Inc.; Keith Kinter, Walker Filtration Inc.; and, Mariana MercadoSotolongo, Barber National Institute.

Certified

row, from left: Julie Sacchetti, Scott Enterprises; Phil Gluvna, Parker Hannifin Corporation; Matt Muddiman, Parker LORD; Amy Oligeri, Walker Filtration; Tori Koziara, Parker Hannifin Corporation; Noelle Stephenson, ACL; and, Rebecca Logan, API Technologies Corporation.

row, from left: Mutaqui Wright, Southern Tier Brewing; Brett Neimeic and David Curtis, Parker Hannifin Corporation; Samuel Ingro, Walker Filtration; Greg Pal, Patrick Hamilton and Phil Darnell, INEOS; and, Brad Galloway, Eriez Manufacturing.

Excel Applications Specialist Series — St. Marys

Front row, from left: Sharon Krise, Advantage Sales & Supply Company; Courtney Sherry, ThorCo Logistics; and, Brandy Mason, Northern Tier Community Action Corporation. Back row, from left: Glen Carnahan, Morgan Advanced Materials & Technology, Inc.; Joshua Konrad, Advantage Sales & Supply Company; and, Danielle Mason, Northern Tier Community Action Corporation.

Certified Supervisory Skills Series — Erie Front row, from left: Tim Brown, D&E Machining; David Hamm, BFG Manufacturing; Kyle Staub, Franklin Bronze Precision Components; Robert Brown, BFG Manufacturing; Jeremy Briggs, Parker Hannifin – Quick Coupling Division; Steve Mineard, Urick Ductile Solutions; and, Ryan Galbraith, Greenleaf Corporation. Back row, from left: Olive Rothaug, Waldrich Coburg NA, Inc.; Michelle Blum, Franklin Bronze Precision Components; Ryan Wittcop, BFG Manufacturing; Diane McHenry, Greenleaf Corporation; Sarah Hart, Barber National Institute; Curtis Flint and Adam Farrell, Greenleaf Corporation; Katelyn Polumbo, Barber National Institute; and, Breanna Watts, Second Harvest Food Bank of NWPA.

What happened in the economy 2022, and what does the economic forecast look like for 2023? What are the real facts and figures behind global, national and local economic trends, and what do the leading economic indicators tell us about the future? Join us for lunch at the MBA’s annual Economic Outlook briefing on Thursday, December 8, as we hear from two of the region’s widely respected economists as they address these timely topics that could impact your organization and more.

Ken Louie, Ph.D. is the director of the Economic Research Institute of Erie (ERIE) and an associate professor of Economics at Penn State Behrend. He is regularly sought out by news media for his commentary on the regional economy, as well international trade and finance, labor economics and economic development. He received the Penn State Behrend Council of Fellows Award for Excellence in Teaching and was a Fulbright Lecturer in the People’s Republic of China in 1998.

Oluwaropo A. (Abbey) Omodunbi, Ph.D., is an assistant vice president and senior economist for The PNC Financial Services Group. He is responsible for contributing to PNC’s regional, national and international economic analysis and forecasts, including coverage of metropolitan area economies throughout PNC’s footprint. Omodunbi is frequently cited in international, national, and regional media outlets including The Wall Street Journal, CNN, CBS News and MarketWatch. He also regularly appears as a guest on NPR.

PRESENTED BY:

The ninth annual Manufacturing Day (MFG Day) celebration was held October 12 at the Bayfront

Center in Erie. Nearly 2,000 students and guests from around the region attended the half-day event, which was hosted by the MBA, partners NWPA NTMA, Career Street and Harbor Creek School District, along with major sponsor AirBorn and main stage sponsor Northern Pennsylvania Regional College, and more than 25 other

organizations. For photo coverage, visit mbausa.org.

Thank You Sponsors!

Contest winners were presented some amazing prizes for the MBA Trivia Challenge (a new Apple iPad on behalf of Bob Frost of Wabtec), the MBA Kahoot! Challenge (Cinemark Tinseltown gift cards on behalf of Lisa DeFilippo of the MBA), and the JV MFG Exhibitor Prize (a Yeti gift basket on behalf of

Students enjoyed a delicious lunch thanks to sponsorsCurtze, Smith Provision, Penn State and Plastek.

Students attended breakout sessions during the dayon manufacturing and technology related topics.

Industrial Sales & Mfg. Inc. and Gannon University surprised students with a special drone delivery of custom keychains.

Shown here are Frank O’Connell of the Northern PA Regional College,Mike Monico of Airborn, Jennifer Nygard-Pontzer of Career Street andTami Adams of the National Tooling & Machining Association.

The

organizations.

Shown with Manufacturer & Business Association Chairman Jana Goodrich (third from left) of Seaway Manufacturing are the 2022 Locco Award winners: Chase Miller of the Crawford County Career & Technical Center; Brilie Ann Tasker of the Corry Area Career & Technical Center; Jairo Sandoval of Erie High School; Nate Leksell of the Mercer County Career Center; and, Tyler Chorney of the Erie County Technical School.

Trivia T-shirts were sponsored by Ridg-U-Rak, AmericanTurned Products, Eriez, Ellwood National Forge, NTMA/NWPA,Airborn and Sybridge Technologies.

The 2022 MFG Day celebration is one of the largest in the country with nearly 2,000 students and guests in attendance.

More than 50 exhibits were featured at the MFG Day event.

The Manufacturer & Business Association hosted its 117th Annual Event on October 12 at the Bayfront Convention Center in Erie featuring keynote speaker George Blankenship. The event was sponsored by major sponsor Ridg-U-Rak as well as UPMC Health Plan, Logistics Plus, PNC, Howard Industries, MacDonald Illig Attorneys, Greenleaf Corporation, Parker LORD Corporation, McInnes Rolled Rings, Insurance Management Company, Widget Financial and Bonnell’s Truck & RV Collision. For photo coverage, visit mbausa.org.

The MBA paid tribute to John Krahe for his many years of service and contributions to the Association and for his lead oversight for this year’s Manufacturing Day (MFG Day) celebration and Annual Event.

Ridg-U-Rak, Inc., shown here with the Pellegrino family and guests, was the major sponsor of this year’s event.

The MBA also remembered plastics pioneers Joe Prischak of Plastek and Bill Witkowski of Port Erie Plastics who passed away over the past year.

American business executive George Blankenship delivered the keynote address to a packed ballroom on how to transform companies for the future through innovation.

The 2022-2023 Board of Governors was introduced on stage.

Anthem Artist Joe Everson sang the National Anthem and drew the winning raffle ticket for this year’s painting, which was won by Welders Supply. Everson’s appearance was made possible by Bonnell’s Truck & RV Collision.

Pastor Daryl Myer of Hope Junction in Union City delivered the invocation.

The MBA Business Magazine Annual Reportis the most widely read issue of the year!

Annual Event sponsors were recognized on stage.

Work with the best.

You demand the best from your team. In return you want to give your employees the best that you have to offer. And with multiple affordable plan options for businesses of all sizes, an award-winning Health Care Concierge Team, and access to high-quality care locally and while traveling, UPMC Health Plan has you covered to meet your company’s diverse needs.

More reasons why businesses choose UPMC Health Plan

Trust

As

Access

Give

Value

As

Plan options

No

To find out why 95% of businesses that choose UPMC Health Plan stay with UPMC Health Plan visit UPMCHealthPlan.com/employers.