PBN June 23, 2023

International exercise rower maker retains startup vibe

BY CHRISTOPHER ALLEN | Allen@PBN.com

WHEN USING A WaterRower Inc. product, “you are the engine.”

The simple design of the handcrafted rowers features a paddle system through water in a circular tank to provide resistance when users pull back the handlebar, offering a lowimpact cardio workout from an eerily quiet machine that could blend into a Norman Rockwell painting.

(Editor’s note: This is the 10th installment in a monthly series highlighting some of the region’s unsung manufacturers that make products essential to the economy and, in many cases, our way of life.)

TOO SMALL TO FAIL?

SEE WATERROWER PAGE 15

BY JACQUELYN VOGHEL | Voghel@PBN.com

John MacKrell launched an app-based laundry pickup and delivery service more than three years ago, a question sometimes came up during his search for early-stage investors.

“We were asked, pointedly, ‘Are you planning to stay in Rhode Island, or would you move to Boston or New York?’ ” MacKrell recalled.

GROWTH

UP TO SPEED: Assembler Carlos Cepeda, left, and assembly lead Felix Trochez put together an exercise machine at WaterRower Inc.

PBN PHOTO/MICHAEL SALERNO

He was honest. He had lived here for decades and wasn’t willing to pull up stakes. MacKrell’s answer cost him some funding deals and may have slowed the growth of the startup.

SEE HUB PAGE 12

founder of the app-based HappyNest Inc. laundry services, didn’t have the funding for explosive expansion but has steadily grown the East Greenwich business to 38 states so far, as shown on the map behind him.

John

PATTERN:

MacKrell,

PBN PHOTO/MICHAEL SALERNO

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BUSINESS BESTSELLERS

$100M Offers: How To Make Offers So Good People Feel Stupid Saying No

Alex Hormozi

Hormozi offers methods to help turn your business’s prospects around and improve your sales pitches to customers.

Acquisition.com Publishing

ISBN: 9781737475736; $28

Poverty, By America

Matthew Desmond Desmond draws on history, research and original reporting to show how affluent Americans knowingly and unknowingly keep poor people poor.

Crown ISBN: 9780593239919; $28

The Creative Act: A Way of Being

Rick Rubin with Neil Strauss

The famed music producer offers a course of study that illuminates the path of the artist as a road we all can follow.

Penguin Press

ISBN: 9780593652886; $32

Stop Overthinking: 23 Techniques to Relieve Stress, Stop Negative Spirals, Declutter Your Mind, and Focus on the Present

Nick Trenton Trenton guides readers through obstacles with

Paris: The Memoir Paris Hilton

The famed millionaire heiress offers her story on who she really is. Hilton separates the creation from the creator and the brand from the ambassador.

Dey Street Books

ISBN: 9780063224629; $19

The Wisdom of the Bullfrog: Leadership Made Simple (But Not Easy)

William H. McRaven

The former U.S. Navy admiral offers his experience, including crisis situations, management debates, organizational transitions and ethical dilemmas, to provide

BY SAM WOOD | Wood@PBN.com

1What kind of infrastructure has been built at the Port of Providence, which Waterson Terminal Services manages for ProvPort Inc. as part of the offshore wind construction hub? Is there any more infrastructure coming?

Orsted A/S recently built a large manufacturing hall at ProvPort to support foundation component fabrication and assembly. In addition, ProvPort has leased an additional 20 acres of land for laydown area to support both offshore wind, as well as other port customers. We are also actively involved in the South Quay port development in East Providence, which is crucial to Rhode Island’s continued growth in [offshore wind] port services.

2What does this type of investment mean to ProvPort, Waterson Terminal Services, and to Providence and the state of Rhode Island?

Past and future investments will allow ProvPort, WTS, the city and state to maintain their leadership position in offshore wind. Rhode Island was first, but if we want to remain at the forefront, port infrastructure investment is essential.

3Surely other regional ports were in the running and are still in the running to become a construction hub for the wind turbines. How do ProvPort and Waterson differentiate themselves? ProvPort has many physical attributes, including high ground bearing capaci-

ty, laydown areas adjacent to the quayside and close proximity to the offshore lease areas that make it very attractive to the industry. Additionally, our successful execution of the Block Island project led to strong relationships and trust within the [offshore wind] industry. Reputation is critical.

4

Does the existence of the wind farm construction hub detract from other import and export activities at the port in Providence?

In expanding the port by 20 acres, we have been able to preserve all existing customers while supporting the growth of [offshore wind]. Vessel traffic has increased, but with 3,500 linear feet of berth capacity, we are able to manage that increase while minimizing vessel delays.

5

How long is the wind farm construction work at the port expected to last?

We’ve only just begun. I always look to Europe, where the first [offshore wind] farm was installed in the early ’90s. They’re still building new farms now. This is a multi-decade industry where we will support construction, operations, maintenance and even eventual decommissioning. There’s also the prospect of floating wind farms further offshore. I expect the port will be supporting this industry long after I retire. n

PBN FILE PHOTO/MICHAEL SALERNO

5Q: Christopher Waterson

General manager, Waterson Terminal Services LLC

DINING OUT | BRUCE NEWBURY

Weekly food block party

IT SOUNDS LIKE the perfect summer evening. A Wednesday gathering with a craft cocktail or mocktail and a freshly fried falafel pocket, Korean corn dog, or a full meal.

Another outdoor food experience takes its place in the Ocean State, and this one comes with a new addition to our culinary vocabulary: foodieconomy.

This is the backstory of the Schoolyard Market, being billed as Warren’s weekly neighborhood block party in the middle of a hyperlocal food market. The market had its opening on June 14 on the front lawn of Hope & Main, Rhode Island’s premiere culinary incubator, and will be held through Sept. 27.

The weekly market takes on some of the look of the food truck festivals that have become so much

a part of summer in the past two years. Every Wednesday from 4-7 p.m., there will be a rotating lineup of passionate food and beverage vendors putting their best dish forward. Each week the market will host 20 different vendors, live music and cooking demonstrations, as well as activities for kids, and a fun lineup of themes from Christmas in July and Ice Cream Sundae Week to Yappy Hour for four-legged marketgoers. Lawn chairs, wagons and extra shopping totes are strongly encouraged. Admission is free, and both Supplemental Nutrition Assistance Program benefits and Electronic Benefits Transfer dollars are accepted.

“The Schoolyard Market is truly a place to scope out what’s new in local food and beverage,” said Alison Mountford, Hope & Main’s director of marketing. “Since the majority of vendors are members of our culinary incubator, they’re making their products on-site and selling them to our community. Some are brand-new, making their first sale to the public, and others are here growing and expanding their passionate customer base. Either way, it’s a win for local food lovers.”

the simple grilled cheese, it has been used as a dressing, a grilling sauce, a dip and a secret ingredient in pasta sauce. Barber traces the history of his signature creation to his time on a food truck where simple becomes culinary.

Hope & Main’s mission is to empower an inclusive community of entrepreneurs to jumpstart and cultivate thriving food businesses that are the foundation of a more sustainable and resilient local food economy. Since opening in 2014, its members have launched more than 450 food and beverage businesses.

The startup food businesses, some of which have become iconic in the state, have been showcasing their specialties in a retail and food service setting every day at the Downtown Makers Marketplace at 100 Westminster St. in Providence. The facility is open from 7 a.m. to 4 p.m. each day and is designed to showcase the hundreds of small food businesses launched through Hope & Main. This venue creates opportunities for consumers to meet hyperlocal entrepreneurs and taste their products, thus supporting the local foodieconomy.

IN DEMAND: Benny Barber, executive chef of Hope & Main’s Downtown Makers Marketplace in Providence, had a hit with his grilled cheese sandwich and signature roasted garlic onion jam at the opening of the Schoolyard Market in Warren on June 14.

Chef Benny Barber of BSquared LLC was front and center at the Schoolyard Market opening. The chef served up grilled cheese sandwiches made with his signature roasted garlic onion jam. A breakout success from the Downtown Makers Marketplace in Providence, it is a versatile creation made from four ingredients: garlic, onion, balsamic vinegar and a touch of sugar. In addition to elevating

“Food is a relationship that goes so much deeper than reading a label in a supermarket,” said Lisa Raiola, founder and president of Hope & Main. “We want to share the fascinating story of the origin and production of the food we eat every day.” n

“Dining Out With Bruce Newbury,” syndicated weekly on radio, can be heard in Rhode Island, Connecticut, Vermont and Indiana. Contact Bruce at bruce@brucenewbury.com.

‘The Schoolyard Market is truly a place to scope out what’s new in local food and beverage.’

ALISON MOUNTFORD, Hope & Main director of marketing

Portrait photos in a flash

BY CHRISTOPHER ALLEN | Allen@PBN.com

AS THE OWNER OF Studio Newport, Olga Enger is no stranger to portrait photography, work that involves extensive preparation, from makeup to lighting.

The Newport-based photographer recently opened a new business, Flash Photobooths, offering customers professionalquality photos in a fun and easier format, what Enger calls “a modern selfie-station.”

“Images are what shape our memories,” she said. “Today’s marketing is all about authentic, sharable content.”

Photobooth rentals are perfect for weddings, birthday parties, graduations and corporate functions.They are also popular with businesses, Enger said.

“The photobooth has evolved,” she said. “These aren’t large, clunky boxes that people remember. The design is modern and portable. It’s interactive and produces quality images similar to a portrait studio.”

The booths are equipped with interactive touch screens, filters and video, and allow guests to text and email images.

“Our booths are like having an extra photographer and entertainer in one package,” Enger said. “Guests will forget the decorations of a wedding, or what was served for dinner. But when they have amazing photographs of themselves celebrating with friends and family, those images will someday become priceless keepsakes.” n

Setting sail with spirits

Brewery expands its offerings

BY SAM WOOD | Wood@PBN.com

IT ONLY TOOK THREE YEARS for Alan and Jennifer Brinton’s Grey Sail Brewing Co. LLC to become a bona fide triumph.

With South County Distillers, they’re looking to bottle lightning for a second time.

The Brintons launched Grey Sail Brewing in 2011 in Westerly. It was in 2014, with the introduction of their super hoppy double IPA, Captain’s Daughter, that the couple found themselves with a monster hit on their hands.

“It took us by surprise. Captain’s Daughter really became the ‘it’ beer for a while,” said Alan Brinton. “Retailers would get angry they couldn’t get enough. By 2015, we were continuously adding new tanks, scaling up the recipe and modifying the brewhouse to produce bigger batches. We’re still in a growth phase.”

The brewery – named after their eldest daughter, Grace, (Grace’s Ale, get it?) – now offers nine core brews along with a variety of seasonal offerings, distributed in Rhode Island, Connecticut, Massachusetts, New York, New Jersey and Pennsylvania.

As Grey Sail’s award-winning operation grew to produce 11,000 barrels a year, the Brintons expanded their vision to include an array

OWNERS: Alan and Jennifer Brinton

TYPE OF BUSINESS: Brewing, taproom and distilling

of spirits.

It was a natural evolution. A former production manager for pharmaceutical giants Merck and Perdue, Alan Brinton is a trained chemical engineer.

“I was approached by Ryan Gwozdz in 2018 with the idea of a craft-distilling project. He had been head brewer at Mayflower Brewing in [Plymouth, Mass.]. I felt Grey Sail was already well on its way, but I wasn’t sure I wanted to wrap my head around a new venture.”

It didn’t take much for Gwozdz to convince Brinton to partner with him.

“Distillation is a chemical engineering unit operation, and I ran distillation vessels throughout my long career in pharma,” Brinton said.

With the OK from Jennifer Brinton – Alan’s wife, mother of the couple’s four children and Grey Sail’s business manager – South County Distillers took a section of the brewery’s tap room. Brinton and Gwozdz worked with Douglas Construction and Supply Corp. of Smithfield to renovate the former Westerly Macaroni Factory’s two

LOCATION: 63 Canal St., Westerly

EMPLOYEES: 12 full time, six part time, eight seasonal

detached garages.

South County Distillers came together in March 2020 with a 300-gallon copper still at its heart.

It was the peak of the COVID-19 pandemic. South County Distillers’ first months focused solely on producing hand sanitizer, which it donated throughout the Ocean State.

“It was one of those odd blessings,” Alan Brinton said. “It gave us time to learn how to run the equipment without worrying about flavor profiles.”

South County Distillers now produces a diverse portfolio of distilled spirits: gin, vodka, agave (because only agave produced in Jalisco, Mexico, can legally be called “tequila”), and limoncello.

“Our long-term goal is to be a player in the bourbon and rye arenas,” Brinton said. “We’ve put 50% of our efforts in laying down barrels of bourbon and rye whiskey. Some are already starting to mature.”

South County Distillers’ business plan calls for very modest distribution.

“We won’t grow as big as the brewery,” Brinton said. “But we’ll gradually enter markets farther out in Connecticut and Massachusetts. Already, production is up 80% over last year for the distillery. The trends are all super, super positive.” n

FOUNDED: 2011

ANNUAL SALES: WND

FRESH SPIRITS: Grey Sail Brewing Co. LLC co-owners Alan and Jennifer Brinton show off some of the spirits from their newly launched South County Distillers venture , which is housed inside their Grey Sail Brewing facility in Westerly.

PBN PHOTO/DAVID HANSEN

QUICK SHOTS: Olga Enger in her Studio Newport space with her latest addition to her business, the Flash Photobooth.

PBN PHOTO/DAVID HANSEN

Lasting damage from Philly fiasco?

BY SAM WOOD | Wood@PBN.com

RHODE ISLAND’S REPUTATION has taken a hit amid reports of a state official’s “bizarre, offensive and unprofessional actions” during a March visit to Philadelphia, but now observers are wondering about the possibility of longer-term damage.

David Patten, director of the state’s property management division, has resigned after accusations that he made inappropriate comments and demanded gifts and favors from a developer looking for subsidies to rehab the Cranston Street Armory.

Some worry that Patten’s reported behavior has revived a reputation for corruption that Rhode Island thought it had long put behind it.

“The incident recalls the days of [former Providence Mayor Vincent A. “Buddy”] Cianci [Jr.] and former [Gov. Edward D.] DiPrete,” said Wendy Schiller, professor of political science at Brown University. “It not only resurrects the state’s history of corruption but revives memories of misogyny, racist and sexist behavior. That’s not what Rhode Island is now. We’re trying to sell our state, not extort people.”

The episode garnered stories in the national news media. The Philadelphia Inquirer comically described

Patten as an “entitled jabroni” and Rhode Island as “a state of lies.” Rhode Island is entering a sensitive period. Under Gov. Daniel J. McKee’s administration, the state is mustering its resources and goodwill to drive development. Some projects are in limbo, such as the rehabilitation of the “Superman” building in Providence and the Pawtucket soccer stadium that’s under construction but in need of millions of dollars of private investment.

With economic development initiatives involving out-of-state parties,

perceptions can be crucial, some observers say.

“The last thing we need is yet another oversized tale of Rhode Island public officials misbehaving,” said John Marion, executive director of Common Cause Rhode Island “Someone does something like this and it wipes out all the goodwill we’ve built.”

Gary S. Sasse, who was former Gov. Donald L. Carcieri’s director of administration and is director of the Hassenfeld Institute for Public Leadership at Bryant University, says the episode has caused some damage, but only time will tell how much.

“Anytime there are stories in the national media that make state leadership look bad, it causes reputational harm,” Sasse said. “I don’t know how quickly this will pass. It can only be overcome if the state adopts policies that encourage investment and

growth in the state.”

The situation could have been worse on national late-night TV if not for a labor dispute involving joke writers, according to Christopher Morse, a communications professor at Bryant who teaches crisis communications.

“We’re lucky that there’s a screenwriters strike going on,” Morse said. “This would have been a ‘Saturday Night Live’ skit.”

Still, observers say the McKee administration may have compounded the damage by withholding the details for months. McKee said he was waiting for an investigation to be completed before taking action, and he only released an email revealing the accusations after a ruling by Attorney General Peter F. Neronha.

“The problem with waiting is that it allows people to draw their own conclusions, with their own biases and thoughts,” said Mike Raia, who served as communications director for former Gov. Gina M. Raimondo.

Raia, who runs Half Street Strategic Consulting LLC, said he tells clients facing a crisis “to tell your story first, tell the whole story … and don’t allow a void to emerge that anyone else can fill.”

“Because the bottom line is that your reputation is your most important asset,” he said. n

‘It wipes out all the goodwill we’ve built.’

JOHN MARION, Common Cause Rhode Island executive director

they become sicker and may require more-complex treatments, making it harder for them to secure and afford housing.

Amid the spike in homelessness, shelters across the state are also stretched thin, with more than 1,200 people on the state’s emergency shelter waiting list. Karen Santilli, CEO of Crossroads Rhode Island, says there are almost no vacancies in any of Crossroads’ five shelters.

As shelters remain filled, Santilli has noticed more clients with catastrophic health issues such as strokes, as well as people with serious mental and behavioral health conditions. For those dealing with these challenges, shelters are difficult environments to manage because of their small size, lack of privacy and limited specialty medical resources, Santilli says.

As a result, people facing homelessness – such as the man Karb and Melucci cared for – often choose to remain unsheltered or rely on ERs for temporary safety and medical care.

Amid housing shortage, access to care wavers

BY KATIE CASTELLANI | Contributing Writer

SITTING

next to a campfire in a homeless encampment in a wooded area in Providence, emergency room physician Dr. Rebecca Karb found herself looking through a man’s hospital discharge papers.

The man was homeless and couldn’t understand his diagnosis or remember what happened to him when he had been admitted to the ER two weeks earlier. He only knew that he had brain cancer.

Karb found out he had been admitted for head trauma and did not have cancer but a brain bleed. The man was treated and discharged like every other ER patient and needed additional medical care. But with only the streets to turn to, he had no way of getting care on his own.

This was one of the first patients Karb met with last year as an outreach case worker for House of Hope Community Development Corp., a nonprofit that helps people who are homeless in Rhode Island. Karb along with Sara Melucci, House of Hope director of outreach, and other caseworkers were able to coordinate doctors’ appointments for the man and help him find permanent housing within months.

While the man was one of 1,000 people House of Hope works with annually to

bridge gaps in their health care, there are many more the nonprofit would like to reach. But the recent rise in homelessness across the Ocean State has made it more difficult to find and care for patients in need, Melucci says.

“It’s harder for us to maintain our relationships with them because we’re not able to maintain consistent contact,” Melucci said. “Often it means we can’t work as intensively one on one with each of our clients as we would like.”

A Rhode Island Foundation study released in April found there are more than 1,500 people experiencing homelessness in the state, a 43% increase since 2020. The study also reported that Rhode Island had the second-highest increase in the U.S. in unsheltered homelessness, with over 300 people at any given point.

The statewide housing shortage, which has led to increases in rent prices, is a main reason for the rise in homelessness. James Rajotte, R.I. Executive Office of Health and Human Services director of strategy and innovation, says housing has remained one of the most important social determinants of health outcomes in the state.

People who are homeless tend to suffer the same medical issues as the general population, Karb says. But without access to consistent medications and treatments,

OUTREACH PREP: Emergency physician

Dr. Rebecca Karb, third from left, speaks with health officials and House of Hope Community Development Corp. outreach workers before going to meet with homeless clients.

PBN PHOTO/ MICHAEL SALERNO

“The emergency department is the health care safety net of the system,” said Karb, who is a contractor with House of Hope. “There’s overcapacity in general … so it becomes even harder to appropriately help people that come in with social needs on top of medical needs.”

But ER visits are costly. One study concluded the average price for a single ER visit in Rhode Island is $1,750, approximately the same as a month’s rent.

To address Rhode Island’s rise in homelessness and related health care costs, Sen. Joshua Miller, D-Cranston, introduced legislation in the General Assembly called the Restorative and Recuperative Care Pilot Program. The bill would direct EOHHS to use Medicaid funding to create a program that provides medical services for people experiencing homelessness and help them access permanent housing.

“When you stabilize somebody’s housing, you also help to stabilize their medical condition, and therefore the expenses go down – it’s really almost that simple,” Miller said.

The legislation has passed the Senate for the sixth year in a row but has previously failed to make it past the House. Rep. David A. Bennett, D-Warwick, introduced the House companion bill, which was held for further study by the House Finance Committee on May 17.

Though opponents of the bill were hesitant to use more Medicaid funds, both Miller and Bennett had been hopeful it would pass because this is the first time the Centers for Medicare and Medicaid Services has worked with the state to draft the legislation.

“Then we can start helping more [of] the disadvantaged people,” Bennett said. “The most vulnerable people in our state are the ones that [we’ve] got to focus on.”

Whether the legislation passes, homeless advocates say the best health care treatment for those experiencing homelessness is safe housing.

“We see that once folks have the stability of housing, they’re not having to live in survival mode,” Melucci said. n

‘It becomes even harder to appropriately help people.’

DR. REBECCA KARB, emergency room physician and House of Hope Community Development Corp. contractor

Lardaro: Indicators show R.I. teetering toward recession

BY PBN STAFF

(Editor’s note: A version of this story was first published on PBN.com on June 19.)

PROVIDENCE – Rhode Island is teetering toward a recession due to an abysmal economic performance in April and continued economic weakness, University of Rhode Island economist and professor Leonard Lardaro says.

The Current Conditions Index that Lardaro publishes each month had a contraction value of 33 in April, a decrease from the contraction value of 42 in March.

A CCI value above 50 indicates expansion, while a value below 50 indicates contraction.

“I truly wish it was possible for me to say that this month’s reading was a “strong” 33, but I cannot,” Lardaro said. “Only four of the 12 CCI indicators improved in April and a couple of them barely managed to eke out gains, improving at rates far below what we had witnessed over the last year.”

Lardaro says the four indicators that showed improvement in April compared with a year ago were manufacturing wages, government employment, retail sales and new unemployment insurance claims. He says the category of new unemployment insurance claims was the only one of five leading economic indicators that improved in April. Single-unit building permits issued, employment service jobs, labor force and unemployment benefit exhaustions declined.

“While this did follow four months of improvement, April was the slowest rate at which [new claims] has improved in quite a while, well below the consistent double-digit rates of past months,” Lardaro said. “Couple this with employment service jobs, a leading indicator of future employment [including temporary hires], which has now fallen for the last seven months at double-digit declines since January, and the picture emerges that

layoffs are rising while hiring prospects have dimmed.”

Lardaro says the two “star” indicators throughout the COVID-19 pandemic and post-pandemic period, retail sales and total manufacturing hours, faltered despite recording yearover-year gains in April. Retail sales barely improved, while total manufacturing hours have now declined for the last five months with both the length of the workweek and employment falling.

Unemployment benefit exhaustions rose almost 50% in April, consistent with the month’s double-digit decline in private service-producing employment, Lardaro says. Rhode Island’s labor force fell in April for the 15th consecutive month, helping keep the unemployment rate at 3%, despite resident employment falling for the fourth straight month.

“If we do have recession here, and I now place the odds of that as being fairly high, it will be one where aggregate activity masks remaining areas of strength,” Lardaro said. “Perhaps it might be called a ‘recession in a box,’ or ‘I can’t believe it’s not a recovery.’ Sadly, our current economic performance is entirely consistent with our state’s history of being FILO [first in, last out].”

Year-over-year CCI indicators in April:

n Employment services jobs decreased by 12.6%.

n Government employment increased by 3%.

n Labor force decreased by 0.9%.

n Manufacturing hours declined by 1.7%.

n Private services production employment decreased by 2%.

n Retail sales increased by 0.5%.

n Single-unit permits decreased by 31.8%.

n Unemployment benefit exhaustions declined by 3.7%.

n U.S. consumer sentiment declined by 2.9%. n

DARK AHEAD? University of Rhode Island economist and professor Leonard Lardaro says the state didn’t perform well in April, according to his economic index.

PBN FILE PHOTO/MIKE SKORSKI

CONGRATULATIONS

Congratulations to our colleague Nicole J. Benjamin on her appointment as President of the Rhode Island Bar Association 2023 – 2024.

Nicole’s leadership and commitment to the bar has been exemplary since she became a member of the bar in 2006.

One Citizens Plaza, 8th Floor, Providence RI 401.274.7200 | apslaw.com

Providence | Newport | Boston | Manchester, NH

EDITOR’S CHOICE

Roger Williams Park Zoo to host Zoobilee fundraiser

ROGER WILLIAMS PARK ZOO will host its 31st annual Zoobilee! Feast with the Beasts fundraiser. This event is the zoo’s largest single-night fundraiser featuring fare from dozens of the area’s restaurants and beverage providers. Live entertainment will also be part of the festivities. All proceeds will support the zoo’s operations.

SATURDAY, JUNE 24, 6-11 P.M. $150

Roger Williams Park Zoo, 1000 Elmwood Ave., Providence.

INFO AND REGISTRATION: tinyurl.com/28k55dap

Summer sounds

SOUTH COUNTY MUSEUM will hold its third annual Music at the Museum fundraiser. The event will feature various musical performances in support of the museum, which promotes the history of southern Rhode Island.

SATURDAY, JUNE 24, 2 P.M. $20 South County Museum, 115 Strathmore St., Narragansett.

INFO AND REGISTRATION: tinyurl.com/54hyuw58

On the links

THE TAUNTON AREA Chamber of Commerce will hold its annual Golf Tournament. The event will benefit both the Chamber and the Charles E. Volkmann Scholarship Fund. Since the start of its annual scholarship program, the Chamber has given more than $100,000 to local high school seniors in pursuit of higher education with an interest in a business career. Cost includes greens fee, a shared cart, lunch and dinner.

MONDAY, JUNE 26, 12:30 P.M. $190/player; $40/member dinner; $50/nonmember dinner

LaBaron Hills Country Club, 183 Rhode Island Road, Lakeville, Mass.

INFO AND REGISTRATION: tinyurl.com/yc2myrsu

Real estate post-pandemic

MARCUM LLP will hold a panel discussion titled “Office and Retail Real Estate in Providence – Will It Ever Be the Same Post Pandemic?” Industry leaders will dive into this topic, addressing the current state of the office and retail sectors of Providence real estate and what they predict is coming for the industry.

TUESDAY, JUNE 27, 4:30-7:30 P.M. Free

District Hall, 225 Dyer St., Providence. INFO AND REGISTRATION: tinyurl.com/mrxnkbv6

Socializing over food

THE TAUNTON AREA Chamber of Commerce will hold a young professionals street food social event, hosted by Malis Asian Comfort Food. The networking event will bring local business professionals together in a relaxed setting. Complimentary cocktails will be offered.

Interested in having your businessrelated event included in What’s Happening? Contact PBN Researcher James Bessette at (401) 680-4838 or Research@PBN.com.

PARTY TIME: Attendees dance during Roger Williams Park Zoo’s annual Zoobilee! Feast with the Beasts fundraiser in 2019. The zoo will host its latest fundraising event on June 24.

COURTESY ROGER WILLIAMS PARK ZOO

THURSDAY, JUNE 29, 5-7 P.M. Free/members; $10/nonmembers

Malis Asian Comfort Food, 1550 New State Highway, Unit 3, Raynham.

INFO AND REGISTRATION: tinyurl.com/bddp3av7

Understanding housing crisis

THE GREATER PROVIDENCE Chamber of Commerce will hold a workshop titled “Understanding the Impact of the Housing Crisis on Employees” as part of the Chamber’s Lunch & Learn series. Eric Coury, owner and manager of The Coury Team Realtors, will discuss the current economic and housing market challenges for employees, what is happening and why, and what employers can do to improve recruitment and increase employee retention.

WEDNESDAY, JULY 12, NOON TO 1

P.M. Free/members; $15/nonmembers CIC Providence LLC, 225 Dyer St., Providence.

INFO AND REGISTRATION: tinyurl.com/23jftxke

On tap

THE SOUTHERN RHODE ISLAND

Young Professionals, part of the Southern Rhode Island Chamber of Commerce, will team with multiple

professional groups from around the state to hold a Statewide Summer Social, hosted by Whalers Brewing Co. LLC. This group welcomes professionals under the age of 40 and anyone new to networking to meet quarterly at a local Chamber member business. Pizza and a cash bar will be provided.

WEDNESDAY, JULY 12, 6-8 P.M. $5 Whalers Brewing Co., 1174 Kingstown Road, South Kingstown.

INFO AND REGISTRATION: tinyurl.com/4setp7ya

Driving success

THE TRI-TOWN CHAMBER of Commerce will hold a human resources and business owner forum. The presentation will cover HR strategies for businesses of all sizes, offer opportunities to improve a business’s culture, talent acquisition, employee retention, total rewards, employee development and positive employee relations.

THURSDAY, JULY 13, NOON TO 1 P.M. Free Online.

INFO AND REGISTRATION: tinyurl.com/ywfucwc8

Business tech skills

THE CENTER FOR WOMEN & Enterprise will hold a workshop titled “EmpowerHerTech: Bridging the Digital Divide for Women Entrepreneurs.” The computer literacy session will help attendees gain the skills and tools to succeed in the digital age while receiving personalized guidance and insights tailored to one’s business needs. This session is designed for women at all levels of computer and technology knowledge. Lindsey Ramirez, Rhode Island’s CWE center director, will lead the workshop.

WEDNESDAY, JULY 19, 9:30-11:30

A.M. $10-$50 Online.

INFO AND REGISTRATION: tinyurl.com/yckzufhy

Building new relationships

THE GREATER NEWPORT Chamber of Commerce will hold a Summer After Hours networking event, hosted by Rail Explorers. Business professionals are invited to build connections with one another. Attendees will also enjoy hors d’oeuvres and drinks, such as beer, wine and soft drinks before and after riding the rails – 3 miles each way – as well as during a

20-minute break overlooking Narragansett Bay before heading back.

WEDNESDAY, JULY 19, 4:45-7:30 P.M. $20/members; $25/nonmembers

Rail Explorers, 1 Alexander Road, Portsmouth.

INFO AND REGISTRATION: tinyurl.com/3x5e6ssd

Shopify 101

THE RHODE ISLAND Small Business Development Center will hold a workshop titled “Shopify 101: Website Platform.” The workshop will offer attendees the basics of Shopify. This platform has specific advantages pertaining to certain situations, such as starting a business or creating a website with e-commerce. Amanda Basse, a center marketing counselor, will lead the workshop.

THURSDAY, JULY 20, 11 A.M. TO NOON Free Online.

INFO AND REGISTRATION: tinyurl.com/mrycm6aw

UPCOMING PBN EVENT: The 40 Under Forty Awards Program will be held on Thursday, July 20, from 5:30-8 p.m. at the Aldrich Mansion in Warwick. For more information, visit PBN.com. For sponsorship opportunities, contact Advertising@PBN.com.

TECHNOLOGY

HUB

CONTINUED FROM PAGE 1

Still, if not meteoric, East Greenwich-based HappyNest Inc. has expanded steadily from three employees initially to about 40 now, and the service is offered in 35 states.

And maybe his reluctance to move may have saved him a lot of heartache, too.

That’s because while well-funded technology companies in major hubs such as Boston, New York, the San Francisco Bay area and Los Angeles have had to undertake massive layoffs in recent months, the much smaller tech sector in Rhode Island has largely avoided the carnage.

Indeed, companies with plenty of cash from investors went on a hiring spree during the COVID-19 pandemic, when lockdowns required people to transition to a more digital life that included remote work and online shopping.

Now that things have returned to something closer to normal, many online companies have seen sales decline and those big bets on needing a big headcount have not paid off. Couple that with recession worries, and layoffs have followed.

Nationally, giants such as Amazon.com Inc., Lyft Inc., Google LLC, Meta Platforms Inc. and IBM Corp. have slashed thousands of positions. Just up Interstate 95 in Boston, about 40 tech-related companies have handed out pink slips since January, including e-commerce retailer Wayfair LLC, which cut 1,750 positions, and software and marketing company HubSpot, which laid off 500, according to layoffs.fyi, a website tracking tech job losses.

In Rhode Island, companies in the sector haven’t seen catastrophe, observers say – in part because the local tech industry hasn’t matured to the point that it could engage in a binge of hiring during the pandemic.

“There aren’t gobs and gobs of large software companies in Rhode Island,” said Thorne Sparkman, managing director of the nonprofit Slater Technology Fund, the state’s most active seedstage venture investor. “So the layoffs that you see on the West Coast, or [at] places like Wayfair, those are about companies that experience the broad trends of recession.”

These tech giants are “also coming off crazy high peaks during the pandemic, and they’re reacting to new patterns of employment,” he continued.

Could this disruption be an opportunity for Rhode Island to gain some ground on other tech hot spots? Maybe.

As to why the tech sector hasn’t established itself more prominently in Rhode Island already, it’s hard to say, according to Sparkman. Its neighbors certainly have, he says, with Boston and New York City known globally as venture capital hubs.

Rhode Island’s status poses “more of an ecosystem question that has to do with where is innovation concentrated, where is risk capital concentrated, and how many serial entrepreneurs are produced in that cycle,” Sparkman said. “That’s the kind of thing where if you get even a tiny piece of that economy, it can be very self-sustaining.”

‘MORE RESOURCEFUL’

Some local entrepreneurs acknowledge the lack of significant financial resources for digital technology in Rhode Island, but they say it may have worked to their advantage amid the tech downturn.

Nick Cianfaglione started Artist Republik in Providence in January 2020, an automated networking platform that let independent artists market themselves, book shows and monitor engagement through social media platforms. He sold it to California tech company Friendable Inc. two years later in a stock deal.

Now he’s working on Restaurent, an event booking platform, and he’s happy to be based in Rhode Island, where tech companies are less likely to get caught up in the exuberance that can be contagious in big hubs where there is no shortage of investors.

The tech downturn is “mainly just due to overhiring … rather than fundamental changes within the businesses,” Cianfaglione said.

Because tech companies in Rhode Island don’t have an abundance of resources available, “I think a lot of [them] can be a little more resourceful,” he said. “I think a lot of them are more used to the ebbs and flows of economic changes.

“They’ve seen the growth,” he said. “But they had to work maybe three times harder to get the growth because we don’t have as many [venture capital] funds,

as many resources or options. When money isn’t readily available, you don’t spend it as much as if you walk around town and see a VC every 10 feet.”

Toye Onikoyi, founder and CEO of two tech-related startups in Providence, has a similar view.

Onikoyi’s first startup, Muse LLC, produces mirrors that provide users with an interactive reflective surface that allows them to streamline daily activities such as beauty routines, calendar reminders, streaming services and video calls onto the mirror. In early 2022, he opened The Bubbler VR at 568 Charles St., what’s billed as a virtual reality arcade and soda bar.

Onikoyi isn’t sure why Rhode Island is moving at a slower pace, but he wonders if this aspect of the local tech ecosystem could potentially be helping companies here avoid some of the issues plaguing Big Tech.

“Maybe that’s an advantage,” Onikoyi said. “I think those companies [in big tech hubs] moved faster than their valuations, whereas Rhode Island moves at a much slower pace.”

THE DOWNSIDE

That said, Rhode Island’s tech sector hasn’t been entirely immune to layoffs and losses. And the area’s lack of funding sources has grown more challenging.

Early-stage startup Abyiss LLC, a cryptocurrency and blockchain platform focused on market chain data, has had trouble finding funding opportunities for software-focused tech startups.

Drew Gillen, founder and CEO of Abyiss, recalls a conversation with an investor who told him he was in the wrong place for this type of business.

One of Gillen’s team members joined Abyiss this year after he said his previous employer, Providence-based Mojotech LLC, carried out layoffs. Mojotech, which builds custom websites and mobile apps for high-growth and Fortune 500 companies, declined a request for an interview and did not respond to questions about layoffs.

STEADY PACE: Toye Onikoyi has founded two tech-related businesses in Rhode Island, including a virtual reality arcade called Bubbler VR. Unlike in bigger hubs, Onikoyi says, Rhode Island’s tech sector seems to move at a more deliberate speed, which sometimes can be an advantage.

PBN PHOTO/MICHAEL SALERNO

‘Now, it’s much more, you’ve got to have a plan. You’ve got to be able to grow and show returns.’

JOHN MACKRELL, HappyNest Inc. founder and president

AWARDS

under 40forty 2023

#PBN40Uforty

STACEY AGUIAR Sr. Director of Clinical Quality, UnitedHealthcare

ROBERT ANDREOZZI Chef/Owner, Pizza Marvin

KARA BABCOCK Architect, Associate, Union Studio Architecture & Community Design

TALIA BROOKSHIRE Chief Diversity Officer, Neighborhood Health Plan of Rhode Island

PETER BROWN Head of North America Industry Intelligence, State Street

JENNIFER CARIGNAN Sr. Manager Manufacturing, Amgen

KRYSTAL CARCIERI CARNES Director of Marketing & Design, Carpionato Group

LUCA CARNEVALE Executive Director, Hope & Main

MORGAN JONES CHAMPLIN HRIS Business Operations Lead, General Dynamics Electric Boat

TINO CHOW CEO, Giant Shoulders

JEFFREY DEL RICCI Pharm.D./Sales Director, Genoa Healthcare

JENNIFER DEMETER Director of Development, URI Foundation & Alumni Engagement

CHRIS FEDERICO President, Rhode Island Pharmacists Association

DANIELA FAIRCHILD FRYDRYK Chief Strategy Officer, RI Commerce

MARIO GRANDE VP & CFO, Americas, Hexagon Manufacturing Intelligence

SHERYL GUGLIELMO Principal, DiPrete Engineering

STEVEN HEBNER VP of Finance, Centreville Bank

KRISTEN HUBBARD Associate Medical Director, Coastal Medical

BRIANNA HUGHES VP of Operations, Supply Chain, & Quality, The Town Dock

MEGAN JOHNSON VP & Director, Business Banking Relationship Manager, Webster Bank

ALLISON KRAUSE Senior Associate Attorney, DarrowEverett LLP

BRYAN LIESE Senior Vice President, Operations, Care New England Medical Group

NICHOLAS LORING CEO, Managing Partner, Loring Advisory Group

STEPHANIE MANSOUR Senior Manager, WithumSmith+Brown

JESSICA MARFEO Managing Director, Medicare Product, Blue Cross & Blue Shield of RI

MARIBEL ECHEVERRY MCLAUGHLIN Assistant General Counsel, CCA Health Rhode Island

ARA MILLETTE Director Talent Acquisition and Workforce Development, Lifespan

KIMBERLY MITTELSTEADT Director of Human Resources, University Orthopedics

JACLYN MORROCCO Managing Director, Audit, KPMG LLP

MONSURAT OTTUN Manager, Products & Technology, Pricewaterhouse Coopers (PWC)

STEFAN PETRELLA SVP, Director of Marketing & Business Development, Starkweather and Shepley

JOE RAPOSO Senior Project Manager, Site Specific LLC

CHRISTEN ROBBINS Senior Project Manager, Principal, BL Companies

CAROLINA ROBERTS-SANTANA Director of Pediatric Research Administration, Women and Infants Hospital of RI

ANDREW ROGERS Senior Vice President & Chief Operating Officer, Westerly Community Credit Union

ANKUR SHAH Assistant Professor of Medicine, Brown Medicine

NICK SLOCUM VP/Team Leader, The Slocum Agency, Inc. & The Slocum Home Team

BRYAN TESTEN Senior Director of Finance, Globally Lottery Supply Chain and Services, IGT

BROOKE TREMBLAY Group Account Director, TribalVision

JENNA ZELLMER Partner, Chisholm Chisholm & Kilpatrick

To register, hover over the QR code with your phone camera or visit PBN.com/events

TECHNOLOGY

CONTINUED FROM PAGE 12

And even companies with a track record of steady growth, such as HappyNest, are noticing that investors have become more cautious with their money.

“It’s harder now to get funding than it was a year ago,” MacKrell said. “Back then, it was grow at all costs, just keep growing. Now, it’s much more, you’ve got to have a plan. You’ve got to be able to grow and show returns. Before it was all about capturing the market share, and now it’s more about smart growth.”

Other entrepreneurs noted similar difficulties locally.

“I feel like it’s in its infant stage, but the foundation is here right now,” Onikoyi said of Rhode Island’s tech sector. “There are a lot of initiatives who are here to help, and businesses offer free resources. ... There are great resources in terms of mentorship, but there definitely needs to be more money allocated across the board.”

Entrepreneur Liz Lima says the limitation of the local tech resources became clear when she launched her startup, FierceModa LLC. She found numerous mentorship opportunities in Rhode Island but few funding sources.

Lima launched the company, which is based in Pawtucket and Rehoboth, to serve as a “virtual dressing room,” providing users with fashion options catered to their specific measurements and body type. But as a software-based startup, Lima found little help aimed specifically at businesses primarily operating in the digital realm.

That’s not to say that resources don’t exist, Lima says. Numerous local organizations have helped her business, such as RIHub, Innovation Studio Inc. and Venture Café Providence. But when founders start to look beyond general innovation resources for technology-focused support, the gaps become apparent, she says.

“The amount of push that has been put into entrepreneurship and the startup space is big, and it’s working,” Lima said. “There’s been a lot of people going through these cohorts. So now, if they could just do a little bit more like that for tech, that would be great.”

CAPITAL QUESTION

Getting a clear snapshot of the Rhode Island tech sector isn’t easy, in part because the definitions of what is considered a technology company can vary. And while there are some larger tech-related businesses based in the region, a significant portion of the industry is made up of small earlystage firms.

RIHub has about 325 active startups in its database, with around 20% focused on what the organization would loosely consider software technology, according to Managing Director Annette Tonti.

In the second half of 2023, the organization plans to increase its reach in this technology sector.

“One of the things we’re doing this year is ramping up RIHub’s outreach on the technical front,” Tonti said, “because we want to make sure we’re engaging with the prospect of technical founders and technical people who might be employed by

our startups.”

Arnell Millhouse, CEO of CareerDevs Computer Science Institute in Providence and previously an entrepreneur-in-residence at Brown University’s Nelson Center for Entrepreneurship, describes Rhode Island’s tech sector as often overlooked but rife with potential.

Last month, Millhouse organized a quantum computing-focused event at Brown that featured headliners from IBM. But tech developments and opportunities often don’t reach people who aren’t actively seeking opportunities, he says.

“This is a topic that, outside of Brown or [the University of Rhode Island], probably has never graced the ears of the average Rhode Islander,” Millhouse said of the quantum computing event. “[Last month], it did, and people realized we are on the cusp of great things taking place.”

But then there’s the question of capital.

Outside of Slater, all other Rhode Island-sourced funding for HappyNest came from individual contributions, MacKrell says.

MacKrell says he’d like to see the state take action to bolster the sector with such steps as putting more emphasis on keeping recent college graduates within the state, and providing more funding opportunities for software-focused tech companies in Rhode Island.

These issues have also been apparent at VoltServer Inc., an East Greenwich company marketing its electrical energy distribution system. Like HappyNest, the company also received funding from Slater – an important resource due to the scarcity of investors in the Ocean State, says founder and CEO Stephen Eaves.

“We’re close to Boston and New York, which helps, but we just don’t have the same classic venture capitalists,” Eaves said.

The culture isn’t there either, he says.

“From a state perspective, I wish we were just tweaked a little more to cultural entrepreneurialism,” Eaves said. “It’s not that kind of state. It’s very biased towards hospitality, tourism, service industries.”

Still, Rhode Island has factors working in its favor such as quality-of-life measures such as lower rent and less traffic, he says, which employees seem to find increasingly valuable.

And VoltServer has managed to use these factors in its favor, sometimes drawing talent from the Boston area – the company is currently hiring “pretty aggressively,” Eaves said. But successful recruitment requires a lot of effort.

“You have to be competitive,” he said. “You don’t have to have quite a Boston pay rate, but we still have to be competitive.”

Sparkman doesn’t see the relatively fewer sources of Rhode Island-based funding as a roadblock for companies, particularly in today’s world of remote meetings and an increased reliance on digital communication.

“The venture capital business is now worldwide,” Sparkman said. “It’s not really about the capital sources so much as companies here commercializing breakthrough technologies, and do they have great teams that are growing quickly. So it’s less about funding opportunities and more about the companies themselves.”

To fund Artist Republik several years ago, Cianfaglione relied heavily on financial support he garnered through connections with alumni at Bryant University, where he was attending at the time. With Restaurent, he says nearly all of the more than $1.5 million he’s raised comes from Rhode Island investors.

That’s a minuscule amount compared with the massive venture capital deals in places such as Boston and New York City. That’s fine with Cianfaglione and other local tech entrepreneurs.

Providence’s low profile can also be advantageous when Big Tech is in turmoil in the renowned tech regions.

“I believe that it’s better to be a big fish in a smaller pond,” Cianfaglione said. “It makes the company more attractive, it makes running the company a little easier. … There aren’t a lot of hoops to jump through to talk to the right person.” n

‘It’s less about funding opportunities and more about the companies themselves.’

THORNE SPARKMAN, Slater Technology Fund managing director

THE MONEY MAN: As Slater Technology Fund managing director, Thorne Sparkman is plugged into the local technology scene.

PBN FILE PHOTO/RUPERT WHITELEY

‘When money isn’t readily available, you don’t spend it as much as if you walk around town and see a VC every 10 feet.’

NICK CIANFAGLIONE, entrepreneur

WATERROWER

One model was famously featured on the Netflix series “House of Cards.”

“The furniture effect. That’s our signature,” said CEO and President Peter King during a recent tour. “You are not going to use it if it’s hidden in a basement or garage. The aesthetics is one of the most functional elements.”

Founded in 1988 in Warren by John Duke, a Yale University engineer and U.S. rowing team candidate, WaterRower now builds 750 machines weekly at its factory on Metacom Avenue, where the company relocated in 2017. The factory is the company’s sole production facility and North American headquarters.

Originally from Sydney, Australia, King moved from the company’s London office after taking the reins of the company in 1996.

Rowers come equipped with performance monitors to measure distance and speed. But King doesn’t foresee a move to “gamified” indoor exercise, such as the use of virtual reality headsets or VR-enabled applications.

“When you are on these, you sweat,” he said. “It’s really about performance.”

On display in a showroom at WaterRower’s Warren headquarters are dozens of models of the company’s exercise equipment from over the years, beginning with some “antique” models built by Duke in the late 1980s.

The facility also includes a gym for product demos and an open-floor office. In the production area, there are seven assembly lines with employees cutting and hand-polishing wooden planks.

In addition to selling direct to consumers and to gyms and fitness companies, WaterRower has relationships with more than 300 retailers. During the busy run up to the winter months, there are usually between 5,000 and 6,000 preorders from customers now more eager and willing to invest in combating the holiday gluttony.

Domestic sales make up 20% of revenue; overseas sales make up 65%, mostly in Europe. King says the company now has approximately 120 employees in Warren, including its entire engineering department.

Matt Curti, quality control supervisor, said what started as “just a job” when he was 23 is now a career. Curti, now 38, said he spends his workdays maintaining standards “across the board,” from in-house products to those shipped from outside vendors.

Though an international company, Curti says the Warren facility retains a startup vibe.

“I tell my friends that I sort of won the lottery when it comes to work,” he said. “I’ve always liked the fact that WaterRower encourages improvement ideas from anyone on staff. I am very proud to see ideas come to fruition and that are now part of our process, whether [those] ideas came from myself or my colleagues.”

MATT

Asked about his biggest concern regarding marketplace competition, King said the company has been battling for years with “copycat” theft, mainly from China. There is currently a lawsuit in the London courts. The company is resting its case on its products being “works of artistic craftsmanship.”

WaterRower Inc. quality control supervisor

dicted downturn, King is confident the company can weather any economic turmoil with a simple recipe: strong balance sheet, low debt, high cash.

But inflation and overseas conflicts remain a concern, King says, especially since WaterRower ships 80% of its exports to Europe.

“It has been a shock,” he said, citing energy prices, political turmoil and foreign currency fluctuations. “We keep an eye on how we compete with input costs around the world.”

King likes to steer clear of the growing trend toward hiring social media influencers or chiming in on social hot topics, which can often backfire in today’s partisan political climate.

Like many manufacturers, WaterRower is experiencing a correction after the cheap debt and flood of cash available during the pandemic was followed by the economic shock of gummed-up supply chains and creeping inflation. King says the company on average held about $4 million of inventory during the pandemic as consumers snapped up available exercise equipment. Today, it’s $20 million.

“The pipeline was so long,” he said. “But a lot of that is washing out at the moment.”

Staffing at its pandemic peak reached 360, including 200 short-term contractors to deal with workforce shortages.

“It’s not commodities [that’s the biggest issue],” King said. “It’s labor.”

Annual revenues are now at $30 million, down from a pandemic peak of $70 million. With a pre-

“The consumer has wised up,” he said. “We focus on exceeding customers’ expectations.”

Local cities and towns should toss aside “the smokestack mentality,” King said, and encourage zoning and planning changes to boost manufacturing activity, part of the state’s historic pedigree.

“Otherwise, you are just a bedroom community,” he said. “It’s nice to have a mixture.”

The six different types of wood are mostly sourced from the Appalachian Mountains region, the site of fierce competition for lumber leading to rising prices. But King has no intention of replacing the company’s hardwoods with a cheaper and more accessible alternative.

WaterRower even installed a massive furnace that recycles unused wood pieces for energy, burning at 150 degrees Fahrenheit.

“Part of our ethos is sustainability,” King said. n

BLENDING IN: WaterRower Inc. CEO and President Peter King demonstrates one of the company’s stationary bikes in its showroom in Warren. King says the aesthetics of the equipment, which resembles furniture, is one of its most functional elements.

PBN PHOTO/MICHAEL SALERNO

‘WaterRower encourages improvement ideas from anyone on staff.’

CURTI,

EARLY STAGE: Assembler Izabel Cortez works with one of the rower parts at WaterRower Inc. in Warren. There are approximately 120 employees at the company’s Warren facility, including its entire engineering department.

PBN PHOTO/MICHAEL SALERNO

THANK YOU for celebrating with us!

1. AAA Northeast shows their team spirit.

2. Shawmut Design and Construction accept their award, #1 Best Places to Work at a midsize company.

3. Team Marasco & Nesselbush show their spirit.

4. Partner sponsor Neighborhood Health Plan of Rhode Island accepts their award.

5. Blue Cross & Blue Shield of RI team accepts their award.

6. Team Swarovski Optik North America accept their award.

7. Partner sponsor Navigant Credit Union accepts their award.

8. Team Amgen.

9. RI Foundation with co-host Neil Steinberg.

10. Team Delta Dental.

11. Compass IT Compliance show their team spirit.

12. The team from Washington Trust shows their spirit.

13. University Orthopedics accepts their award.

14. Stacey Messier accepts CIC Providence’s award.

15. The Amica team accepts their award.

16. Aaron Lavoie and Julian Emerich, Stanley Tree Services and partner sponsor, accept their award.

17. Stephen Cribben and Gordon Lucaj, Chisholm Chisholm & Kilpatrick.

WORKFORCE DEVELOPMENT

in hand, Wunschel will be able to rise further in the nonprofit ranks. She said she plans to remain at Community Care Alliance.

“This will allow me to explore other opportunities,” she said, and she hopes to use her newfound skills in a sector that was already reeling well before the pandemic arrived and sent many vulnerable clients on the margins over the edge.

Many are still fighting to make up for lost progress.

“The stigma is still in place around mental illness,” she said. “The pandemic was really hard on our field. [Those seeking help] had to stay home. It was challenging to [rely so much on] telehealth.”

R.I. Postsecondary Commissioner Shannon Gilkey said the equity program, and others like it, are meant to address “noncollege-related barriers to enrollment, persistence and completion.”

Some of the most common impediments, according to Gilkey, are the lack of internet or computer, and reliable transportation. Other “wraparound” services include pairing enrollees with an educational adviser.

Pilot program gives lift to hopeful health workers

BY CHRISTOPHER ALLEN | Allen@PBN.com

LORI-ANNE

Wunschel has logged more than 15 years working in social services and addiction counseling, helping countless clients, many with major traumas and minimal means.

For the past nine years, she has worked at Woonsocket’s nonprofit Community Care Alliance, helping adults with “severe and persistent” mental illness and substance use disorders.

As for career advancement, Wunschel, now a team leader for CCA’s community support program, has made it as far as her own financial circumstances will allow, a bachelor’s degree in psychology and justice studies and later a stateissued license to treat chemical dependency.

She would have gone further and sought a master’s degree in social work, but like many people, earning money today took precedence over advancement tomorrow.

“I’ve always wanted to go back and further my education,” she said. “But this is not a very high-paying field. It wasn’t feasible at the time.”

Luckily for Wunschel, a state-run program launched in 2022 has provided the path. The pilot Health Professional

Equity Initiative – a 62-credit “credential attainment” program administered by the R.I. Office of Postsecondary Education in partnership with the R.I. Executive Office of Health and Human Services and Rhode Island College – will pay her way, charging her nothing but the time and effort.

The program was “an absolute lifesaver,” said Wunschel, who is now one of 20 participants in the program’s inaugural cohort, which began in the fall of 2022.

She was provided with a $20,000 stipend that can be used for tuition, school supplies and transportation costs. Other allowable uses include child care and car repairs.

Wunschel is appreciative that her fellow awardees, like her, already have experience as behavioral health care providers. They’ve formed a tight unit, she says, working their day jobs and attending classes at night.

“We tend to have classes together. Even some of my co-workers are in the same classes,” she said. “Now we know all the faces. We’ve done projects together. And if we have questions, we tend to bounce them off each other.”

Funded by a federal $3 million American Rescue Plan Act grant, this first cohort is expected to graduate in 2025. With her master’s degree in social work

SELF IMPROVEMENT:

Lori-Anne Wunschel is a staff member at the nonprofit Community Care Alliance in Woonsocket, helping adults with mental illness and substance use disorders, but a state pilot program is allowing her to pursue an advanced degree at no cost to her.

“Clearly, there is a need for wraparound services, and we continue to actively seek diverse funding streams, public and private, state and federal, to continue serving students in need,” he said.

In Rhode Island, a master’s degree accredited by the Council on Social Work Education is necessary to become a licensed clinical social worker. According to state labor data, the health care and social assistance sector is the state’s largest, employing 76,600 workers.

Typically, paraprofessionals earn lower wages, have higher turnover rates and are disproportionately women and racial minorities. Office of Postsecondary Education data shows that a master’s degree, on average, leads to $20,000 in additional annual earnings.

The equity initiative is designed to address these “systemic barriers” and the dearth of career pathways in this field. Program literature also cites “a lack of culturally and linguistically appropriate services for patients and clients,” which can hamper successful treatment.

State officials agree that those seeking counseling services and other interventions do better when working with someone with whom they personally identify. And this isn’t only a sociocultural matter. It’s often practical.

“People do feelings in their native language,” said Rick Brooks, EOHHS director of health care transformation.

Demographic changes in the health care field have not kept pace with statewide shifts, Brooks says.

“Licensed jobs continue to show disparities. That’s a critical problem for the patients that we serve,” he said. “We need to … be very proactive in increasing the diversity of the health professional workforce.

“It’s not for everybody,” he added. “These are physically and emotionally demanding jobs. But they are rewarding. And meaningful.” n

PBN PHOTO/MICHAEL SALERNO

‘I’ve always wanted to go back and further my education.’

LORI-ANNE WUNSCHEL, Health Professional Equity Initiative participant

Rhode

toWork Work

RE-IMAGINING the workforce of today & IDENTIFYING solutions for tomorrow.

This new PBN annual publication, focusing on workforce development and career opportunities in our region, will serve as a resource for employers and job seekers, targeting Rhode Island’s emerging workforce.

Rhode to Work will feature information about careers in seven essential industries in our area.

15,000 COPIES TO BE DISTRIBUTED TO:

• PBN’s audience

• Educational and career centers

• State employment offices and workforce organizations

• Other relevant outlets

Rhode to Work should be a part of your marketing plan if:

• You want to increase your brand exposure and be part of workforce development in Rhode Island.

• You are hiring or plan to hire.

• You have internship opportunities at your company.

• You are targeting tomorrow’s workforce with classes, programs and/or seminars for a degree, certification or special skills training.

• You offer human resource services to help RI companies recruit, train, and retain their future workforce.

• You offer services and products for members of the workforce.

PUBLICATION DATE: September 29, 2023 SPACE RESERVATION: August 25, 2023

For many, tech institute can’t come fast enough

BY JONNY WILLIAMS | Contributing Writer

THE ALARMING NOTICE appeared without warning on the town of North Kingstown’s computer system in April.

A message said hackers had taken control of the town’s data, and town officials should contact them to discuss a ransom. What the hackers apparently weren’t aware of was that the town had taken steps to guard itself from ransomware attacks.

The apparent breach sent the town into emergency mode and disrupted online services. However, thanks to the foresight of town officials, the data had been stored on a cloud service, and thus seemed to be safe.

Such attacks have become commonplace in recent years, highlighting both the threat posed by hackers and the need for trained experts to combat it. A new center for cybersecurity studies to be housed at Rhode Island College’s School of Business will aim to fill that need.

Led by former U.S. Representative James R. Langevin, the Institute of Cybersecurity & Emerging Technologies will expand RIC’s cybersecurity classes to offer bachelor’s degrees and, ultimately, master’s degrees on the subject. The center will act as a hub for professional development in the state, with promises to develop curriculum for other higher education institutions, establish a fellowship program and create a “workforce pipeline” for middle and high school students.

Eventually, it will also provide training in artificial intelligence and other emerging technology.

“We want to put our college and our state at the forefront of one of the most rapidly growing and most strategically important industries in the country,” said Jack Warner, interim president of RIC.

On June 9, the General Assembly approved Gov. Daniel J. McKee’s proposal in the fiscal 2024 state budget to set aside $4 million to fund the center over the next three years, with $2 million coming from the state’s Coronavirus Local Fiscal Recovery Fund and the rest from RIC.

Donald Nokes, head of NetCenergy LLC, a firm that provides information technology services, welcomes the idea of a center for cybersecurity. Businesses across the state – from hospitals to banks, government offices and tech firms – could benefit from it. And he says “there really is no end in sight” for the need for cybersecurity experts.

“It’s sort of this arms race, where hackers come up with some new technologies to infiltrate our security systems, and then our developers –guys in the white hats – are

creating better tools to help identify and prevent the kind of attacks from happening,” Nokes said.

Demand is certainly strong. According to CyberSeek, an online tracker for cybersecurity job postings, there were 2,700 openings posted between May 2022 and April 2023 in Rhode Island, an aboveaverage demand compared with other states. The data also shows gaps in the professional certifications required for the jobs. For example, there are only 278 certified information systems security professionals in Rhode Island, but 668 of the openings are requesting the credential.

Over the years, Nokes has noticed that while the demand for cybersecurity expertise is growing, the workforce needed to meet it seems to be missing. Even now, he has an open position that he has struggled to fill, and from anecdotal evidence, he has gathered that many graduates of cybersecurity programs in Rhode Island leave the state for jobs elsewhere.

“Whether they’re all leaving the state or whether they’re all getting hired within the state, there still aren’t a lot of them available for us,” Nokes said.

It is hard to tell whether Rhode Island’s cybersecurity workforce is growing.

Labor statistics do not have a category for cybersecurity workers. Instead, they could fall under two categories: information and custom

computer programming services. According to the R.I. Department of Labor and Training, the information sector has shrunk significantly over the past decade, from 10,145 workers in 2011 to over 5,700 in 2022 (in 2017 about 2,000 positions were reclassified into another sector). Meanwhile, the workforce in custom computer programming services has more than tripled, from about 1,100 workers to more than 3,700.

Langevin, who focused heavily on cybersecurity during his time in Congress, sees the gaps in the job market as an opportunity. He says the institute at RIC will partner with business owners to fill their needs and help develop the center’s program offerings.

“Businesses will help to meet and solve their own problems and their needs in cybersecurity by helping us both to better develop the program so that we’re teaching what businesses need, but then also [by] providing internship and apprenticeship opportunities so that students have a place to go right away before they graduate,” Langevin said.

Warner says the institute also will do contract work for local businesses, such as offering professional development courses to train staff in cybersecurity.

Additionally, Langevin plans to get accreditation for the institute from the National Security Agency’s National Centers of Academic Excellence in Cybersecurity program, which determines curriculum standards. By joining, the institute will qualify for the federal government’s CyberCorps, a scholarship program for undergraduate and graduate students in cybersecurity studies.

Langevin hopes that graduates of the program will decide to fill jobs in Rhode Island. According to Warner, around 70% of RIC’s graduates stay in the state. n

BIG PLANS: Jack Warner, Rhode Island College’s interim president, says in addition to training for RIC students, the Institute of Cybersecurity & Emerging Technologies will do contract work for local businesses, such as offering professional development courses to train staff in cybersecurity.

PBN FILE PHOTO/MICHAEL SALERNO

‘We want to put our college and our state at the forefront.’

JACK WARNER, Rhode Island College interim president

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Her mental health work honored

MEGAN N. CLINGHAM, director of the R.I. Office of the Mental Health Advocate, was presented with the 2023 Mental Health Hero of the Year award from the Mental Health Association of Rhode Island in May for her compassion and advocacy for people with serious persistent mental illness.

What does receiving this award mean to you?

None of us do this work for awards, but I am highly honored to be recognized by my fellow advocates at MHARI for the work I and my colleagues … do.

How profound has the mental health crisis in the state become since the onset of the COVID-19 pandemic?

The crisis started long before COVID-19, as funding for services has been cut and reimbursement rates remain stagnant, leading to the deterioration of our entire system of care for people living with serious and persistent mental illness. … I think the isolation, anxiety and lack of ability to provide in-person services during the pandemic all contributed to the surge in treatment needs we are now seeing. I think it also contributed … to the difficulty health care providers are experiencing in recruiting and maintaining staff.

How have you and the office responded to mental health needs?

We represent tenants in eviction proceedings and other matters pertaining to housing retention, intervene and advocate for safe discharge from psychiatric hospitalization so our clients receive

the level of treatment they need to stay safe in the community, and monitor and advocate for individuals with [serious and persistent mental illness] caught up in the criminal legal system and incarcerated at the [Adult Correctional Institutions] or detained at the Rhode Island State Psychiatric Hospital and Eleanor Slater Hospital

There have been multiple instances of funding distributed to local schools to address mental health needs. W hat will this funding mean for the state to help address mental health issues with schoolchildren?

Teachers are often the first to notice when a student is struggling, so it makes sense to bring the mental health supports right to the schools. Adding mental health services to the resources available at school will raise awareness that help is available and reduce the stigma of reaching out for help.

What more needs to be done to address mental health in the state?

The state needs to put money into establishing a continuum of care for individuals living with serious persistent mental illness. The state has invested in many studies telling us what the needs are; now is the time to fund them. n

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A YOUNG BANKER asked a retiring banker what the secret of success was in banking, to which the older banker responded, “Good judgment.”

The rookie then said, “How do you get good judgment?”

The older banker said, “Experience.”

To which the youngster asked, “How do you get experience?”

And the retiring banker said, “Bad judgment.”

Anyone who has ever been in business can identify with that story.

As a business leader and parent, I value one attribute most: a person’s good judgment. Judgment is the result of a person’s decision-making. When your values are clear, making decisions becomes much easier.

Good judgment involves evaluating circumstances, weighing the positives and negatives, and considering alternatives.

“In the face of ambiguity, uncertainty and conflicting demands, often under great time pressure, leaders must make decisions and take effective actions to assure the survival and success of their organizations,” said leadership expert Warren Bennis. “This is how leaders add value to their organizations. They lead them to

Exercise good judgment

success by exercising good judgment, by making smart calls when especially difficult and complicated decisions simply must be made, and then ensuring that they are well executed.”

A variety of challenges confront leaders and team members every day: budgets, mistakes, delays, staffing, conflicts, safety, profits – all call for making decisions that can affect an organization’s future.

What are the skills you need to improve your judgment?

n Ethics is all about knowing what is right and wrong. Is it fair and legal? When I talk about ethics in my speeches, I introduce the subject by saying, “Act like your mother is watching.”

n Consistency is expected. You can’t let emotions or intense situations affect your judgment. Even the best business plans will fail without a dedication to consistency.

n Listen to learn. Listening to others allows you to collect and assess important information rather than

relying on your opinion or personal bias. Good judgment is about making the best decisions rather than relying on your opinion.

n Accept your mistakes. Everyone makes mistakes. Accept responsibility and move forward. The important thing is to learn from your mistakes and don’t repeat them.

n Learn from experience. If something went wrong, do things differently the next time; and if things went right, learn from your decisions.

John Spacey, writing on Simplicable.com, emphasizes the need for pragmatism and situational awareness. Accepting “difficult real-world conditions such as uncertainty, gray areas and imperfections” is a must for making sensible and sound decisions. Equally important is the “ability to be highly observant and diligent to respond to fast-moving situations,” he writes.

Here’s another story to illustrate my point. A business owner who was nearing retirement invested her

life savings in a business enterprise, which had been elaborately explained to her by a swindler.

When her investment disappeared and the dream was shattered, she went to the Better Business Bureau. The bureau asked, “Why on earth didn’t you come to us first? Didn’t you know about the Better Business Bureau?”

“Oh, yes,” she said. “I’ve always known about you. But I didn’t come because I was afraid you’d tell me not to do it.”

Too bad her judgment didn’t lead her to ask questions about the proposed investment: Is this a risk I can afford to take? Is this person honest and trustworthy? Is this the right time to take such a gamble? What if it doesn’t work out as planned?

Simple but necessary questions could have saved her a life of regret.

Mackay’s Moral: Judgment is knowing which door to open when opportunity knocks. n

Harvey Mackay is the author of the New York Times bestseller “Swim With the Sharks Without Being Eaten Alive.” He can be reached through his website, www.harveymackay.com.

MORAL | HARVEY MACKAY

The best business plans will fail without ... consistency.

(Editor’s note: This is the 11th installment of a monthly column on the growing number of cyberthreats facing businesses of all sizes and what they can do about it. A version of this column was first published on PBN.com on June 16.)

OUR NEWS CYCLES are flooded with stories, both positive and negative, about artificial intelligence.

The remarkable abilities of AI platforms, capable of generating human-like content, artwork, music, software code and more-creative tasks that traditionally have been the work of humans, can now be delegated to AI programs.

This has raised fears among skeptics that business leaders will swiftly displace their entire workforce. However, the reality I see contradicts this belief.

Rather than replacing humans, business leaders are leveraging these technologies to optimize productivity,

Finding right AI balance

enhance efficiency and deliver higherquality results. Today’s business leaders must grapple with the need to embrace AI to stay competitive. Failure to leverage these tools could leave them struggling to keep up with the pace of business innovation.

While AI rapidly revolutionizes industries by automating tasks, augmenting decision-making and fostering innovation, leaders realize that AI can pose a significant risk to businesses as well.

For instance, AI can be harnessed to craft sophisticated cyberattacks, such as generating phishing emails that are likely to deceive recipients.

Misuse of data is another concern, as AI can collect and analyze vast amounts of information, potentially leading to targeted advertising or discriminatory practices against certain groups.

Employees using AI can also introduce significant risks to businesses. One of the biggest concerns amongst

business leaders is the sharing of sensitive, confidential and intellectual property data into these AI systems.

Employees have access to valuable information and can inadvertently upload sensitive data into AI platforms, opening the door to potential data loss. This could include proprietary company information, customer data, trade secrets or other classified data that could harm the organization once it is shared to systems outside of the organization’s control.

The consequences of this can be catastrophic, where competitors may gain an unfair advantage, confidential information may be released to the public or proprietary research-anddevelopment data could be exposed.

Ethical dilemmas also further complicate the AI landscape. Despite the extraordinary capabilities of AI algorithms, they are only as unbiased as the data they are trained on.

To mitigate the risks associated with employees sharing informa-

Business leaders must grapple with the need to embrace AI to stay competitive.

tion with AI platforms, businesses must implement robust data-security controls and comprehensive datagovernance practices. Basic practices such as implementing multifactor authentication, strong passwords and keeping software up to date are table stakes but are not enough to protect organizations against these modernday cyber risks.

Leaders can start implementing comprehensive access controls now to manage data access based on the principle of least privilege to protect their businesses. Utilizing data classification frameworks are critical in identifying and labeling sensitive data.

AI is on the path to revolutionize industries, enhance customer experiences and increase productivity. But we must not overlook security risks and ethical concerns. The key lies in finding the delicate balance between innovation, responsibility and security.

Next month: Why cyber-awareness training is not enough. n

Jason Albuquerque is the chief operating officer of Pawtucket-based Envision Technology Advisors LLC. You can reach him through www. envisionsuccess.net.

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E-COMMERCE MAY MAKE shopping more convenient, but it has a dark side most consumers never see.

Say you order an electric toothbrush for Father’s Day and two shirts for yourself from Amazon.com Inc. You unpack your order and discover that the electric toothbrush won’t charge and only one shirt fits you. So, you decide to return the unwanted shirt and the electric toothbrush.

Returns such as this might seem simple, and often they’re free for the consumer. But managing those returns can get costly for retailers, so much so that many returned items are simply thrown out.

In 2022, returns cost retailers about $816 billion in lost sales. That’s almost twice the cost of returns in 2020. The return process, with transportation and packaging, also generated about 24 million metric tons of carbon dioxide emissions in 2022.

Together, costs and emissions create a sustainability problem.

As a supply chain management researcher, I follow developments in retail logistics. Let’s take a closer look inside the black box of product returns.

So, you repackaged your unwanted items and drove them to UPS, which

GUEST COLUMN | SIMONE PEINKOFER

Problem of online returns

has an agreement with Amazon for free returns. Now what?

UPS transports those items to the retailer’s warehouses dedicated to processing returns. This step of the process costs the retailer money – 66% of the cost of a $50 item by one estimate – and emits carbon dioxide as trucks and planes carry items hundreds of miles.

Processing a return requires that it be unpacked, inspected, repacked and rerouted. That adds more to the cost to the company. Workers have to unpack the items, inspect them and decide what will happen next.

If a warehouse worker decides the shirt in our example can be resold, the shirt will be repackaged and sent to another warehouse.

Once another consumer orders the shirt, it will be packed and shipped.

In-store returns can significantly cut warehouse and transportation costs, but driving to a store might not be convenient for the consumer. Only about a quarter of online purchases

are returned in person to the store.

If the item is defective, the warehouse worker might send it back to the manufacturer for fixing and refurbishing. It would be repackaged and loaded on a truck or a plane.

If it can be repaired, the refurbished product is ready to be sold into the consumer market again – often at a lower price.

Refurbishing returned products helps to achieve a closed-loop supply chain where products are reused, making the process more sustainable than buying a new item.

Sometimes, however, repairs cost more than the product can be resold for. When it is more expensive to restock or refurbish a product, it may be cheaper for the retailer to throw the item away.

If the company can’t resell the shirt or refurbish a product economically, the outlook for these items is grim. Some are sold in bulk to discount stores. Often, returned products simply end up in landfills.

In 2019, about 5 billion pounds of waste from returns was sent to landfills, according to an estimate by the return technology platform Optoro. By 2022, the estimated waste had nearly doubled to about 9.5 billion pounds.

In the past, customers who wanted to return items by mail were often expected to do so on their own dime. That changed after Amazon began offering free returns and providing easy-to-use drop-off locations. Other retailers followed suit.

But that pendulum may be starting to swing back. The percentage of retailers charging to ship returns has increased.

Retailers are trying other techniques to lower the return rate.

Some retailers have shortened the return window, limited frequent returns or stopped offering free returns. Other strategies include virtual dressing rooms and clearer fitting guides. If consumers use those tools, they can help cut down on retail’s growing climate footprint. n

Simone Peinkofer is an assistant professor of supply chain management at Michigan State University. Distributed by The Associated Press.

July 7, 2023

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Often, returned products simply end up in landfills.

EDITORIALS

McKee administration must reprioritize public’s interest RIC gets much-needed support

RIGHT PRIORITIES?

Gov. Daniel J. McKee’s administration fought for months to keep secret an email claiming two former state officials displayed inappropriate behavior during a March business trip.

It should not have taken months for the McKee administration to investigate the details of the now-infamous March business trip to Philadelphia by two state officials that made the state the butt of national jokes.

That’s what Gov. Daniel J. McKee suggested was the holdup in publicly denouncing – and then acting on – the complaints by developer Scout Ltd. against David Patten, the former state property director, and James Thorsen, the former director of the R.I. Department of Administration.

Gov. McKee finally announced on June 15, three months after the trip, that Patten, accused of the worst of the “blatantly sexist, racist and unprofessional” behavior outlined in an email the developer sent state officials, will resign.

That announcement followed news that the staff of the R.I. Ethics Commission had prepared ethics complaints against the two officials just a week after first learning of the sordid details in the email.

Yes, there were privacy issues to consider. But it should have been immediately clear to the governor and his advisers that a swift public response and resolution from the administration deserved priority in this case.

Instead, the administration fought for months to keep the details private and let the matter linger as a human resources issue.

In the interim, Mr. Thorsen announced within weeks of the trip that he was leaving his post for a federal job, with the governor issuing a statement thanking him for his service.

It’s hard not to wonder now what else is going on in the McKee administration that we should know about. n

POLL CENTRAL

EXECUTIVE POLL

The next chapter

Are you or any of your employees slated to retire within the next five years?

Yes: 83%

No: 17%

0%

How many employees are enrolled in a retirement plan?

More than half: 50%

33%

17%

Which of the following do you plan to rely on for retirement income?

Private retirement accounts (401(k), IRA): 100%

Social Security: 0%

Pension: 0%

Private savings: 0%

and bonds: 0%

0%

Does your company have a financial adviser to help employees plan for retirement?

Yes: 83%

17%

Rhode Island College got two much-needed wins in this year’s legislative session.

The first is a long-sought extension to RIC of the Hope Scholarship program. Eligible students will get the final two years for a bachelor’s degree tuitionfree.

For a school that has struggled for years with declining enrollment, the scholarship program could be a lifeline.

The state school also received support for a new center for cybersecurity studies to be housed there. The center will be headed by former U.S. Rep. James R. Langevin, who was one of Congress’ foremost cybersecurity advocates. The center is expected to be a training resource for local businesses, which will need all the help they can get with cyberattacks increasing worldwide.

RIC interim President Jack Warner, Gov. Daniel J. McKee, who supported both proposals, and General Assembly leaders all deserve credit for helping a struggling state school find a path toward stability. n

PBN.COM POLL

Should the state do more to support the redevelopment of Providence’s ‘Superman’ building? JUNE 9-15

Yes, but only after the building’s owner secures more financing 26%

No, the state has given enough financial support 19%

No, the building will cost too much to save 15%

I’m not sure 0%

THIS WEEK’S POLL: Should local colleges drop COVID-19 vaccination mandates now that it is no longer recognized as a public health emergency?

• Yes, the mandates were only defensible in an emergency situation

• No, COVID is still a significant public health threat

• I’m not sure

To vote, go to PBN.com and follow the link on the home page

Some banks falter, not special-needs trusts

Recent bank failures have caused many individuals and organizations to worry about the security of their funds held in banks. Many retirees and others with accumulated wealth never gave much thought to the limits of Federal Deposit Insurance Corp. insurance, but that is now changing as consumers seek to ensure that their assets are protected if their bank goes out of business.

JOAN E. Mc GRATH GUEST COLUMN

Our nonprofit organization administers special-needs trusts, which are used to ensure that a person with a disability has continued access to the care and support that they need, even after a caregiving loved one has passed away. Assets that have been set aside for the beneficiaries of the trusts are protected from financial setbacks at the bank where they are held.

It is important for the public to know that special-needs trusts are extraordinarily safe due to the legal protections inherent in a trust, as well as an array of steps taken by trust administrators to keep those funds safe. Individuals and organizations whose funds are held in a trust account at a bank do not bear the risk of exposure to the bank’s potential insolvency.

Here are some reasons why I believe assets held in a special-needs trust are safe

Special-needs trusts are extraordinarily safe.

despite banking and fiscal turbulence.

Funds held in trust are not bank assets. Assets held in managed accounts for which a bank’s trust department also serves as a custodian are considered neither assets nor liabilities of the bank. By law, assets held in these accounts must be segregated from all other bank assets. The books and records of these accounts must also be kept separate from the books and records of other bank activities, such as routine deposit and withdrawal transactions. The ownership of these assets remains vested in the individuals or entities for whose benefit the bank is acting as an investment manager and custodian. In all instances, special-needs trust assets are not subject to the claims of a bank’s creditors.

Assets in a trust are diversified. The chief objective is the continued preservation of trust assets with an eye toward long-term growth. The trust assets are invested primarily in diversified mutual funds managed by companies with a favorable track record and reasonable fees. Each investment strategy is implemented through a combination of several funds. Fund performance should be regularly and continuously monitored and reported to the trust’s managers and inde-

pendent board.

Safe investing is the standard. Trust administrators understand that the funds are critical to providing each trust beneficiary with needed items and services. Accounts should be managed with a conservative mindset to protect and grow participant assets over the long term. As a result, participant accounts should experience less volatility than what is reported on the nightly business reports. Individual performance at the beneficiary level will be dependent upon several variables, including when money is invested, which investment strategy is assigned to the participant and what the actual cash flows in and out of the portfolio are.

Independence is a critical operating principle. Having an independent investment adviser who is accountable to the trust administrator, as well as separate internal and external overseers, helps to ensure that any misguided investment strategy can be checked and corrected. Trust administrators must ensure separate and equal roles so that no one individual can create an unacceptable level of risk.

Recent bank failures have caused all of us to reassess our level of financial risk. Yet, special-needs trusts provide a high level of security and stability for people with disabilities who depend on these funds. n

Joan McGrath is executive director of the nonprofit Planned Lifetime Assistance Network of Massachusetts and Rhode Island Inc.

The Fed’s epic fight against inflation is likely over

The Federal Reserve’s decision to hold rates steady signals that central bankers believe it is time to hit pause, at least temporarily, on their aggressive campaign to tame runaway inflation.

The latest data, along with several other factors, suggests it’s time for a full stop.

On June 14, the Fed chose not to lift rates for the first time in 11 meetings, leaving its target interest rate – a benchmark for borrowing costs across the global economy – at a range of 5% to 5.25%. Over 10 consecutive hikes beginning in March 2022, the Fed had raised rates a whopping 5 percentage points.

“Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy,” the central bank said in a statement. The Fed indicated it still expects to raise rates two more times by the end of the year.

But I believe there’s good reason to think the Fed’s brief hiatus is likely to turn into a permanent vacation.

The fastest rate of inflation since the 1980s is what prompted the Fed to hike interest rates so much. So it makes sense that inflation would be a key indicator of when its job is complete.

The latest consumer price index data, released on June 13, showed core inflation –the Fed’s preferred measure, which excludes volatile food and energy prices – falling to an annual rate of 5.3% in May, the slowest pace since November 2021. That’s down from a peak of 6.6% in September 2022.

While the data shows inflation remains well above the Fed’s target of around 2%, there’s good reason to believe that it will continue to fall regardless of what the Fed does.

Shelter, a measure of the cost of owning or renting a home, is the largest component of the consumer price index, accounting for more than one-third of the total. In its latest report, the U.S. Bureau of Labor Statistics reported shelter costs rose 8% from a year ago. After stripping that out, inflation was up just 2.1%.

The thing is, the data reported by the bureau doesn’t reflect the reality of what’s happening in the current housing market.

The BLS relies on a survey that gauges rental prices from 50,000 leases, many of which were signed during the rental bubble in 2021 and 2022. A better measure of current market rents is the Zillow Observed Rent Index. That index suggests rates are declining – rents rose 4.8% year over year in May, aligning with pre-pandemic rates.

Comparing the two measures suggests the official consumer price index data lags behind the market by four to six months. Using current rents would put inflation much closer to where the Fed wants it to be. Jason Furman, former chair of the government’s Council of Economic Advisors, created a modified version of core inflation – which uses a market-based measure of shelter prices – at 2.6%.

It is likely that further rate hikes will do more harm than good – particularly to the

banking sector – and without helping lower inflation below its current trajectory.

Several regional lenders, including Silicon Valley Bank and First Republic, collapsed earlier this year following bank runs. Combined, they had over a half-trillion dollars in assets.

While there were several factors behind the banks’ demise, an important one was the Fed’s aggressive rate hikes, which caused the value of many of their assets to fall. The banks catered to depositors with accounts that exceeded the $250,000 threshold protected by the Federal Deposit Insurance Corp. These depositors ran for the hills when they learned about the extent of the bank losses. This turmoil, in tandem with higher rates, is also cooling business activity. This means the Fed doesn’t need to go as high on rates as it otherwise would have.

The Fed was behind the curve in 2021 and 2022 in realizing inflation was getting out of control, and it has been historically slow in recognizing the impact of rental rates on inflation.

The June pause in raising rates should give the Fed time to take a break, look at the data and, I hope, realize inflation is closer to its target than it appears.

But if it continues to raise rates, I believe the central bank will be repeating the same mistakes it made in the past. n

Ryan Herzog is an associate professor of economics at Gonzaga University. Distributed by The Associated Press.

Connectedness breeds success

Iam a lawyer; not a psychologist. But every life experience I have had has led me to believe that people need people. That is why relationships and connectedness built through professional organizations are so important.

There is an African proverb: “If you want to go fast, go alone. If you want to go far, go together.”

The pandemic challenged the way we think about togetherness. By necessity, it caused us to go fast alone. It is time now for communities to come together again, and together we will go far.

We are better together; we are happier together; and we are more successful together.

As lawyers, we carry the weight of our clients’ heaviest burdens along with our own. While we have long emphasized well-being, we sometimes overlook the strong, documented correlation between connectedness – the kind of connectedness fostered by professional organizations such as bar associations – and wellbeing.

Fulfilling lawyers’ intrinsic need to feel connected – to be an engaged member of a community and to feel a genuine sense of belonging – can have a positive effect on lawyers’ happiness and success, and in turn, on civility in the profession.

As bar president, I have one ask of the more than 6,500 members of the association. Be the community for a young lawyer that you were to me. The future of our profession depends on it. n

Nicole J. Benjamin Adler Pollock & Sheehan PC shareholder, Rhode Island Bar Association president

Nicole J. Benjamin joined Adler Pollock & Sheehan PC as an attorney in 2008. She began serving as president of the Rhode Island Bar Association in June.

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