Walters, Harmon enter JA Business Hall of Fame Mitch Walters and Roy Harmon at the Junior Achievement Tri-Cities, TN/VA Business Hall of Fame Induction Celebration
Plus: Worthington Industries Expands
and
Levine, Wykoff among those representing region at Corridor Summit JUNE 2015
$3.00 Volume 27 Number 10
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Experience. People. Trust.
Jennifer, RN, Nurse Manager Non-Invasive Cardiology Johnson City Medical Center
People. Trust. Experience. Each word can stand on its own. Or, together, they represent the values of Mountain States Health Alliance. We put our focus on people, trust and experience because that’s what you look for in your healthcare partner and what you can always expect to find here. Our people are the pride of our organization, and understand what patients and their families are going through. The trust they place in us is something we take seriously and work hard to live up to. Ultimately, we are creating a patient experience that reaps every benefit of being surrounded by an experienced team. You can read the words individually or as a sentence—either way, people trust experience. For more information, call 844-488-STAR (7827).
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Business Journal The
| COVER STORY
15
of Tri-Cities Tennessee/Virgina
Junior Achievement Tri-Cities, TN/VA Hall of Fame
OFFICE 423.854.0140 PUBLISHER William R. Derby bderby@bjournal.com 423.979.1300
Banker Roy Harmon and automobile dealer Mitch Walters are the 2015 laureates.
Photo by Adam Campbell
ASSISTANT PUBLISHER Jeff Derby jderby@bjournal.com 423.306.0104 MANAGING EDITOR Scott Robertson srobertson@bjournal.com 423.767.4904
| FEATURES Valley Corridor 10 Tennessee Summit Alan Levine and Randy Wykoff were among those who represented the region at the 20th annual event.
36 The woes of Heritage Glass
Kingsport-based manufacturer has burned through its initial cash and suspended operations.
face uncertainty 32 Employers in insurance choices The pace of change in the world of employee benefits continues to pick up speed.
Industries 39 Worthington expands Greene County manufacturer plans to invest $14 million, create 140 new jobs.
ASSOCIATE EDITOR Jeff Keeling jkeeling@bjournal.com 423.773.6438 SALES & MARKETING Jeff Williams jwilliams@bjournal.com 423.202.2240 Robin Williams rwilliams@bjournal.com 423.794.6938 CREATIVE Derby Publishing, LLC Graphics Director / Judd Shaw jshaw@bjournal.com 423.833.2726
The Business Journal of Tri-Cities Tennessee/Virginia is published monthly by Derby Publishing, LLC 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Phone: 423.854.0140 Š2015
| DEPARTMENTS 7 From the Editor 9 FYI 40 On The Move
42 Awards & Achievements 44 Med Briefs 46 The Last Word
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| FROM THE EDITOR
Businessmen and women, please show this page to your daughters T
his message goes out to all the school age girls living in the Tri-Cities: This summer, enjoy your time off from school. Go to the aquatic center. Have friends over and stay up late. Catch fireflies, roast marshmallows, listen to music and eat lots of pie – apple pie, key lime pie, strawberry pie, chocolate cream pie – whatever pie you want. Let everyone know, “I like pie!” Then, once school starts back, I’d like for you to do something that will help you for years to come. Every evening, Monday through Thursday, take 15 extra minutes to study math. That’s just one extra hour a week (a little math there) and I promise you, it will pay off in a big, big way. I’ll tell you how I know. I talked last month at the Tennessee Valley Corridor Summit with two ladies who work for NASA. One of them is originally from the Tri-Cities. They both told me that the business world is desperate to hire young women for careers in science, technology and engineering – the math fields. I also heard from the heads of the engineering schools at two of the best colleges of engineering in the South, the University of Tennessee and Tennessee Tech. Both said they have scholarships ready and waiting for qualified female students. The dean of the University of Tennessee College of Engineering said, “We admit every qualified student who applies to our University of Tennessee College of Engineering, and yet even then, we only have 16 percent women.” Think of that! For every three female engineering students in Knoxville right now, there are almost 17 males (more math). Why does this matter? Why is it important for a young woman to go into a field where she’s desperately wanted by
both higher education and employers? Well, to understand that, you have to know some facts about women in the workplace overall. Women in America make less money to do the same work as men. That’s not politics or spin. It’s a fact. In Tennessee, during 2013, the last year for which we have these numbers, median earnings for men in Tennessee were $41,493 compared to women’s median earnings of $34,301 — an earnings ratio of just 83 percent (more math, though you may not like that problem so much). In the first congressional district of Tennessee the ratio was 82 percent. For every dollar a man was paid, a woman was paid 82 cents. The national average is 78 cents to the dollar. Yet a recent study found that systems engineers, electrical engineers and mechanical engineers were paid almost exactly the same whether they were men or women. In fact, women earned more as systems engineers and mechanical engineers than their male counterparts. Now is it easier to see why those math skills are important? The U.S. Department of Labor estimates that at the current rate of closure, the wages of the average male and female across the board will equate in the year 2056. Do you really want to wait that long? The good news is that if you start excelling at math now, you will be ahead of the game. Girls are still staying away from math-related careers in droves. So with just a little extra study time each evening, you can put yourself way out front. And trust me when I tell you that your math teachers in school are eager to help you succeed. They get paid more when you do well. So girls, enjoy this summer, then go back to school and trade liking pie for liking pi. It may not be that many years before you check your bank account and find thousands of reasons to be glad you did.
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The 23rd annual recognition of the extraordinary individuals and organizations that go above and beyond the call of duty every day. Frontier Health, Wellmont Health System and The Business Journal are proud to recognize dedicated individuals in the region’s medical community who offer their services to assist others, displaying qualities of selflessness, compassion and loyalty. Past heroes have included firefighters, police officers, paramedics, physicians, nurses and volunteers whose accomplishments make a daily impact in our region. Nominees come from all walks of life – any organization or person whose contribution has made a difference in health care. We thank you for helping us discover these extraordinary people by nominating them for the 2015 Health Care Hero and Cup of Kindness® Awards. In addition to recognizing general Health Care Heroes, five special Cup of Kindness® awards will be presented from the following categories: INNOVATION AWARD: To a provider whose inventive thinking furthered the delivery of care. DISTINGUISHED SERVICE AWARD: To a provider who has shown leadership and excellent service over a sustained period of time. COMMUNITY SERVICE AWARD: To an individual or organization for excellence in public health. MERITORIOUS SERVICE AWARD: To an individual who has shown excellence in administration. SUPPORT SERVICE AWARD: To a provider for outstanding assistance in the field of health care. The 2015 Healthcare Heroes luncheon will be held July 9 at the Carnegie Hotel in Johnson City, Tennessee. Honorees attend free of charge. All other seats are $40. Tables of eight are $300. To make reservations now, call 423.979.1301 and ask for Judy, or visit bjournal.com and click on the Healthcare Heroes link.
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The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
| FYI
&Downs
Ups
Eastman’s corporate social responsibility stance - Eastman Chemical Company announced last month it has joined “Together for Sustainability” (TfS). Eastman is the first U.S.-based member of this growing consortium of companies supporting sustainable supply chains in the global chemical industry. TfS is an initiative established by European-based multinational companies to drive improvements in sustainable procurement. Eastman is the thirteenth company to join TfS. Eastman’s Chief Procurement Officer (CPO), Mike Berry, represents Eastman on the TfS General Assembly as well as in the CPO Meetings. Additional representatives from Eastman will also serve as active participants in TfS.
A quick check of the conventional wisdom on who’s going what direction in Tri-Cities business
Jones commits to Niswonger - The Niswonger Children’s Hospital Golf Classic has added four more celebrities to the tournament lineup, including University of Tennessee head football coach Butch Jones. The event is set for Monday, June 29, at The Virginian Golf Club in Bristol, Va. The latest additions to the lineup include Jones; former NFL standouts Jim Stuckey and Todd “TK” Kelly, Sr.; and pro golfer Len Mattiace. The tournament, which benefits the region’s only children’s hospital, once again has a stellar lineup of celebrities, including NFL greats Jason Witten, Peyton Manning, Dan Marino and Emmitt Smith, among many others. In conjunction with the golf tournament, a benefit concert featuring The Beach Boys will take place at Niswonger Performing Arts Center in Greeneville, Tenn., Sunday, June 28.
JCPB rewarded for reliability - Johnson City Power Board (JCPB) is one of 191 of the nation’s more than 2,000 public power utilities to earn the Reliable Public Power Provider (RP3) designation from the American Public Power Association (APPA) for providing consumers with the highest degree of safe, reliable electric service. The RP3 program recognizes electric utilities for proficiency in the following areas: reliability, safety, workforce development, and system From left to right are JCPB employees: Eric Egan, Chief Data improvement. The program provides Officer, Tami Worsham, Manager Customer Service, and Jeff a comparable benchmark for public Dykes, CEO. power companies across the nation. “We’re honored to receive these awards and special recognition,” said Jeff Dykes, JCPB CEO. “Our staff works hard to serve this community. Receiving these high honors among our peers in the utility industry is a great honor and it represents our employees’ hard work.” Piling on Alpha - As if the EPA, China, and cheap gas weren’t a tough enough troika to battle, Alpha Natural Resources learned last month it would face more financial headwinds. Environmental regulators in Wyoming announced that ANR is no longer eligible for selfbonding, which means the price of surety bonds will rise. That word came just days after a judge determined that ANR will be held responsible for the outstanding legal bills of former Massey Energy CEO Don Blankenship. ANR purchased Massey for just over $7.1 billion in 2011, after Blankenship was charged with multiple counts relating to the 2010 Big Branch Mine explosion. The kicker? Blankenship had retired before ANR bought Massey, and Alpha had nothing to do with the explosion. BJournal.com | June 2015 | The Business Journal of Tri-Cities TN/VA
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Johnson City Mayor Ralph Van Brocklin welcomes the summit’s 300-plus attendees. Photo by Scott Robertson
Corridor Summit shows links between health, wealth and education By Scott Robertson
T
he 300-plus leaders in the fields of education and business who gathered on the campus of East Tennessee State University May 27 and 28 for the Tennessee Valley Corridor National Summit heard academicians and healthcare industry experts explain how their education, health and economics affect each other. Dr. Randy Wykoff, founding dean of the ETSU College of Public Health, explained how health affects education. Alan Levine, president and CEO of Mountain States Health Alliance talked about how education affects health, and both men talked about how business is affected by, and affects, both health and education. Wykoff began by calling economic development, education and health, “a three-legged stool,” using data from several sources to show how each of the three factors affects the others. “The Tennessee Valley Corridor faces significant health challenges we all need to work together to address,” Wykoff said. “To understand the health status of the corridor, we can compare the health status of the United States.” While life expectancy in the U.S. is the longest it has ever been, 10
The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
nearly 80 years on average, Wykoff said, that figure ranks the U.S. only 33rd in the world. “As worrisome as that is,” Wykoff said, “the five states that make up the Tennessee Valley Corridor are all in the bottom half of the state rankings with the exception of Virginia, which has pretty wide economic disparities.” Wykoff broke down the statistics even further, to measure life expectancy for the 149 counties that make up the corridor. “On average, our counties have a premature death rate that’s 31 percent higher than the national rate. Eighty-five percent of our counties fall in the bottom half of the nation. So here we are in the nation that ranks 33rd, and almost nine of every 10 counties fall in the bottom half of that nation. That has a direct impact on the corridor economy in the form of increased health spending, increased absenteeism and more.” Wykoff said the major contributing factors to early death include behaviors such as smoking, drinking and overeating, “and ten years ago, that’s where my presentation on this would have ended. I would have said, ‘Folks, we have to get out and change behavior.’
And that message is still true. But today we are coming to understand the importance of social circumstances that impact health, and this is where business comes into the picture.” Health is not just impacted by behaviors and by access to quality care, Wykoff said. “Our health is also impacted by the conditions in which we live, the so-called Dr. Randy Wykoff Photo courtesy ETSU social determinants of health.” Eighty percent of the counties in the corridor have a quarter or more of their children living in poverty, Wykoff said, and poverty is tied to health. A poor American is three times more likely to die before the age of 65 than a wealthy American. As the gap between wealthy regions and relatively poor regions like the corridor widens over time, the economic impact of poverty-related health issues grows. “When we see that, people like me who care a great deal about improving the health of the region suddenly begin to realize that we can’t be successful without the help of the business community,” Wykoff said. “We can’t be successful unless we engage in economic development and job creation. We have to grow the economy to get people out of poverty to impact health.” Similarly, education impacts health. Wykoff quoted statistics showing a five to seven year improvement in life expectancy for those with college degrees over high school dropouts. “So we can’t be successful in improving health unless we get more kids through high school, community college and college.” And when it comes to economic development, education and health, said Wykoff, “none of the three can be successful without the other two. Every employer needs a healthy, educated drugfree workforce. Every superintendent of schools needs students and teachers who are healthy and they need an economic base to pay the costs of education. And every healthcare provider needs people who know the importance of good health and choose healthy behaviors, but who also have the resources to invest in their own lives.” “The bottom line is that we all need to work together,” Wykoff said. Levine rhetorically asked the crowd of engineers, executives and educators, “Why would two hospital systems care about the literacy rates for our youth?” “There is a real intersection between health delivery, education, research and the variables that lead to a healthier society,” SEE CORRIDOR, 12
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CORRIDOR, CONTINUED
Alan Levine Photo courtesy ETSU
Levine continued. “It’s not just about preventing death. It’s about quality of life.” In pointing out the similarities in behaviors that lead to drug addiction, diabetes, and obesity, Levine said, “Thirty years ago, the level of Type 2 diabetes in children was less than 5 percent. It’s now close to 50 percent if not more of new Type 2 cases of diabetes occurring in children.” In 20 years, Levine said, today’s Type 2 diabetic children are going to live a lower quality life and be greater drains on the economy because they will be the individuals battling cardio-vascular disease, vision problems, and the rest of the issues that come with being diabetic. “How do you solve these problems?” Levine asked, again rhetorically. “Well, the National Science Foundation says the rate of scientific advancement will be four to seven times faster than it was in the last 25 years. That would be like Sir Isaac Newton trying to figure out what the world would look like today and plan for it. It’s like going from the Wright brothers to the space shuttle in seven to 10 years.”
Moving that advancement in science into the healthcare marketplace is what will create opportunities for education, business and the healthcare industry to work together, Levine said. “It’s critically important to move from the research lab into practice. It’s not just about inventing things. It’s about changing how we deal with problems and diffusing solutions into communities.” As healthcare moves away from the fee-for-service model, Levine said, it’s the organizations that bring research and care together that will have the brightest futures. “Investments in research net huge economic benefits,” he said. “More than 80 percent of new companies that started through a university-affiliated research endeavor located in the same state as their university affiliation. So it’s not just the economic benefit from jobs created by attracting research faculty and support staff, it’s the opportunity to build patents and new companies. “Investments in research are the solution to healthcare problems,” Levine said. “That is the nature of the new competition.”
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The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
Business Hall of Fame 2015
Mitch Walters and Roy L. Harmon, Jr. BJournal.com | June 2015 | The Business Journal of Tri-Cities TN/VA
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Special Section
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The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
Laureate Special Section
2015
R
oy L. Harmon, Jr.’s roots in business success stretch much further back than his 1980 initiation into the world of banking. They stretch back even further than involvement with Junior Achievement as a Dobyns-Bennett High School student in the early 1970s. In fact, the son of a Holston Valley nurse and a Mead Paper lab technician says, “I can’t remember a time when I didn’t have a job. “When I was growing up I was always doing something to earn money,” says Harmon, who has helped Bank of Tennessee’s profitability during more than two decades with the bank, most as CEO. By the time the Kingsport native took his first “real job” at the age of 12, working weekends as a “starter” at the Meadowview Golf Club, Harmon was a veteran of everything from mowing lawns and raking leaves to picking up Coke bottles and newspaper publishing. That’s right, newspaper publishing. “I wrote a newspaper for the neighborhood,” recalls Harmon, who grew up with his parents and two sisters in the upstairs of a Valley Street home owned by a widow, Mrs. Kilgore. “People would pay you a nickel for it and you had to handwrite every one.” Harmon was born July 9, 1954 at Holston Valley Hospital, the hospital where his mother worked. Kubelene Hatmaker Harmon was from West Knoxville and had graduated from Ft. Sanders Hospital’s nursing school. She was working at Holston Valley when she met Roy Harmon Sr., a Harriman native who had come to work at “The Mead” after leaving the Navy. Roy Harmon’s was a typical workingclass Kingsport upbringing. Roy Sr. was the consummate ball coach/father, who spent 25 years coaching the DobynsTaylor Babe Ruth team in Kingsport.
Roy L. Harmon, Jr.
He stressed fundamentals, effort and commitment and never pretended that everyone is a winner. “He felt like his goal was to help you become a man. You either won or you lost – you didn’t get a participation trophy,” Harmon says. While he was very competitive, Harmon says, his dad was also fair. “If you showed up and practiced and put in the effort, you got to play. His famous saying is, ‘Hustle never made up for ability.’” While Roy Sr. was imparting an understanding of the real world, Kubelene was leading by example – particularly after Roy Sr. became disabled when Roy Jr. was a high school junior. “My mother became the sole provider, because his disability pay was not a lot.” Finally, there was Mrs. Kilgore, who was always there when Roy arrived home from school – first at nearby Lincoln Elementary, then at Sevier Junior High and Dobyns-Bennett. In addition to teaching young Roy important life skills such as laundry and cooking, Mrs. Kilgore had a couple aphorisms of her own that have stuck with him to this day. “Once a job is first begun, do not quit until it’s done,” was the first, Harmon says. “Her other saying was, ‘do it right or not at all.’” By the time he was entering his senior year, Harmon’s work ethic had helped land him a job at Sobel’s men’s clothing store. Norman Sobel tapped a promising rising senior each year to work in the store. “I got the job from Bill Argabrite, and then I passed the job on to Bill Dudney,” Harmon recalls. By that time, Harmon had also made the acquaintance of a fellow student named Liza Brown. They dated a few times – “we went to her senior prom, but it was no serious romance” – and went
their separate ways. Harmon went off to University of Tennessee-Knoxville and wound up graduating with an accounting degree. Harmon also had determined one thing when he went off to college – he wasn’t coming back to Kingsport to live. So he landed a job with Arthur Andersen, spending almost five years with the then No. 1 of the Big Eight accounting firms. “There was a lot of responsibility very quickly. You either succeeded or you were gone,” he remembers. When Harmon left he joined EG&G Ortec, a Boston-headquartered company with an Oak Ridge office. It wasn’t his cup of tea, but he did receive some advice that he cherishes still today from his Ortec boss, Tom Yount. “His advice was, ‘in order to become successful, look at what successful people are doing and do as much of it as you can.’ He was talking about investments, work, public service. That’s kind of what you’re really after in Junior Achievement is to model yourself after these people that are proven leaders in their various ways.” After a year with Ortec, Harmon turned down a transfer to Boston. A friend whose bank, Park National, was in a leadership transition, called and asked if he’d like to become CFO. “I didn’t start out to be a banker,” Harmon says. But there he was, going to work for a community bank in 1980, just before the Jimmy Carter-era interest rates. The bank had a huge portfolio of bonds that didn’t put it in the best position. “I learned a lot about adversity at that time, and how stressful it is in a banking environment,” Harmon says. When First American purchased Park National, Harmon stayed on and became interim chief credit officer before moving
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Special Section
into the real estate division, and eventually into supervising a small business lending division. By this time it was 1989 and Harmon had learned that the former Liza Brown had moved with her three young children back to Kingsport from Atlanta after her husband’s death. He drove his red Porsche over to visit her one Sunday afternoon and it became the beginning of something wonderful. They began dating and by the fall of 1989, Roy Harmon was back in the town to which he had once been determined not to return. He was the happy dad of Emily, Kathleen and John, who were 11, 7 and 4 at the time (today they are a Ph.D. analytical chemist in Boston, an ob/gyn in Raleigh, N.C., and a Ph.D. biomedical engineer at the Mayo Clinic). But as Harmon tells it, “I did not want to work for a large bank in a small market.” So, while he’d found domestic happiness, he 18
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The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
and responsiveness and attention to customers, a nimble organization could really take advantage of the market.” At the Ridgefields Invitational golf tournament in 1991, Harmon approached Bill Greene, chairman, president and CEO of the Bank of Tennessee and asked if he’d be interested in having a discussion about a job. Greene invited Harmon for an interview, which lasted about three hours. Harmon had done his homework. “I told him of the opportunity I felt like - Roy Harmon existed for Bank of Tennessee to grow, and I convinced him that I had the opwas still on the hunt for the right fit in portunity to bring Bank of Tennessee a lot banking. of business.” Between late 1989 and the summer of Based on the interview and Harmon’s 1991, he had watched Bank of Tennessee skill set Greene brought him on as a senior with interest, and thought the then-$100 lending officer. “So we set about to grow million concern with a $65 million loan the bank, and boy did we,” Harmon says. portfolio had potential for organic growth The trajectory from $100 million in a market dominated by regional banks. to $500 million was relatively speedy, “I knew that by focusing on service as Bank of Tennessee’s leadership team
“I take great pride in making a profit. That’s what capitalism’s all about. That’s what JA’s all about.”
Special Section
attracted the best talent in the market, stuck to its strategy, and let market forces do the rest. Harmon sums it up this way: “It was a matter of creating a community bank where employees could flourish and we could provide value for our customers.” The bank was at $625 million before a 2013 merger with Carter County Bank brought it to its current $920 million. 2014 saw a record $10 million profit. Hiring good people has allowed Harmon adequate time to give back to the community and continue enjoying passions such as cycling, fishing and hiking. He was recently named to the Tennessee Lottery Commission and is excited about the potential Tennessee Promise has to improve the state’s economic standing and the lives of its young people. He’s endowed a scholarship at the University of Tennessee, chaired Kingsport’s public art committee and served on the Board of
Mayor and Aldermen, among other public service pursuits. But there’s still plenty left in Roy Harmon’s tank when it comes to banking. Having completed the merger with Carter County Bank, Harmon says, “We’re poised to successfully go forward. Our goal is to be a $2 billion bank in 10 years, and we were profitable every month through the recession. We’re really set to take advantage of what’s coming down the pike.” While the growth may or may not include acquisitions, it will occur with the bank remaining headquartered in Kingsport. That’s in the strategic plan. As Harmon proceeds in his career’s latter years, he says he’s learned a great deal. The hardest quality he’s had to master? “Patience in dealing with people, and allowing them to come to the answer in their own way without jumping in front of them or cutting them off. I’ve learned most things we view as adversity will
pass. If you take a measured approach to it and be patient, it’s not as bad as you think.” Harmon believes his self-perception of a charmed life could also be related to his surrounding himself with optimistic people. “We have a great board at Bank of Tennessee. They expect great things and have an upbeat and powerful attitude. I also have great friends. They all love life.” Opportunity, Junior Achievementstyle, is a big part of what Roy Harmon is all about. “I would describe myself as a capitalist. Our job is to provide products and service that customers will pay for, provide meaningful jobs with fair pay and benefits, be profitable and provide an acceptable return to our shareholders. That’s what capitalism is all about. That’s what Junior Achievement’s all about. Some people go into public service and take different avenues, but no matter what you are doing, you should be the best.”
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Laureate Special Section
2015
T
here haven’t been too many Junior Achievement Business Hall of Fame laureates who’ve had their own catch phrases. But if you show Mitch Walters picture to anyone in the Tri-Cities with a television, they’ll probably say, “Oh yeah, It’s the ‘We’re dealin’ man!” Mitch Walters’ is more than just a face on TV, though. His Friendship family of dealerships today has more than 300 employees, and Friendship has earned the honor of being recognized as “The Best Dealership to Work For in America.” From all outward appearances, you might believe Mitch Walters, was, in fact, destined to be dealin’. And you’d be right. His grandfather, grandmother and father were car dealers. When he went to college, he found a university with a bachelor’s degree program in car dealing. So the fact that Mitch Walters became a car dealer is the opposite of a surprise. Walters was born at Sampson Air Force Base where his father Bob was stationed. When Bob left the service, he moved his wife Sue and Mitch back to his hometown of Hebron, Ohio. Bob’s father, an automobile dealer, passed away, leaving Bob’s mother, Pearl to run the dealership for around four years. After returning to Hebron, Bob, along with his brother Jim, took over the day-to-day duties of running the dealership. Walters became a good student and an above average athlete. While still in elementary school, he met the girl who would later become his wife, though romance didn’t begin to blossom until after their junior prom. In remembering those school days,
Mitch Walters
Walters says, “I wanted to be a car dealer just like my dad.” In fact, Walters still has the “career book” he wrote as a fifth grader. It’s entitled, “I want to be an automobile dealer.” He got an A on that assignment, by the way. Young Mitch found he possessed at least four traits that make a good car salesman. The first was that he could sell just about anything. “I was enterprising. I was one of those kids who was always looking to make a dollar,” he says. “I sold candy bars. I sold Grit magazines. And I always tried to win the top-seller
lawns, scheduled it very tightly, so that I worked Thursday and Friday afternoons, and would be done by noon on Saturday so I could enjoy Saturday afternoons and Sundays. I could do it efficiently, making anywhere from $2.50 to $5.00 to mow a yard. I enjoyed the independence that gave me.” The third trait Walters found was that he was a natural-born promoter. “I had several carnivals every summer,” he remembers. “I would get all this old junk I had for prizes. I’d blow up balloons and they’d throw darts at them. They’d throw a football through a tire. I took the blade off the lawnmower and let them ride. I called it a go-kart. I charged them for that, and then I got wise and put the blade back on and charged them to mow my yard.” And fourth, young Mitch knew the value of a dollar, collecting things of value. “I collected baseball cards, coins, stamps and arrowheads,” he remembers. Walters’ first job at an auto dealer- Mitch Walters ship was restocking the Coca-Cola vending machine at his father’s dealership. “I got paid a Coke,” he remembers. “I washed windows, picked up shop rags, awards.” whatever.” He also set up a Kool-Aid stand next Walters says he was blessed to to the highway in front of his house. That have a mother who made motherhood was his introduction to the retail concept her mission in life. He and his brothers of traffic counts. always had fresh breakfasts in the morn “I had a great business plan, but ings and home-cooked meals. “She was a a lousy location,” Mitch says. “Maybe very cool mother,” Walters remembers. three cars came by all day: my dad, my “She was always a very giving kind of uncle and our one neighbor. You don’t person.” sell much Kool-Aid on a country road. Walters credits his father for teachSo it wouldn’t have been too profitable ing him how to be organized and to work anyway, but then my little brothers came hard while his mother taught him how to along and drank up all the profits.” give and to love. The second trait was that he knew He credits his grandmother Pearl, how to be organized and efficient with however, for teaching him many of life’s both his time and money. “I mowed most important lessons.
“
“What makes me tick is to stay busy. I love to multi-task. The busier I am, the better.”
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“She had gone to work at the age of 14, keeping books for a stockyard. In today’s world, she would be a CEO,” Walters says. Pearl opened the world for young Mitch with lessons like, “Underpromise and overdeliver,” “Always do what you say you’ll do,” and “Be adventuresome.” Pearl had seen all 50 states before she passed away, and Walters still credits her with instilling much of his desire to get out and do as much as possible in life. “Life is the game, not practice,” Mitch says. “She had a lot to do with teaching me that. She gave me direction.” Walters’ parents divorced when he was 13, which he credits with forcing him to mature early. “I became kind of the man of the house,” he says. “I had to step up to the plate, which with my personal-
“
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Life is the game. It’s not practice. - Mitch Walters
ity was not that hard.” Growing up at an early age, Walters never lost his dreams and vision. He never pictured himself working for anyone else. He always knew he wanted to run a company, and by fifth grade he had known he wanted to be an automobile dealer. That focus turned out to be a blessing as Walters was intent on learning everything there was to learn about selling cars. After two years at Ohio State
University, he and wife Danea moved to Midland, Michigan to finish his degree at Northwood University. Why, you might ask, would someone leave a school like Ohio State to attend little-known Northwood? “They had a program where you could take things like automotive marketing and automotive accounting.” By the time he graduated with a 3.76 GPA at the age of 22, Walters was as well positioned to be a rookie automobile dealer as any one man could be. He interviewed for one job, then another, then another, without taking any of them. He noticed no one was turning him down. Everywhere he interviewed, he got offers. “I didn’t realize it when I started interviewing,” he says, “but why wouldn’t you hire me? I had grown up in the
Special Section
business. I had a degree in the business. I had a wife and a kid, so I was going to be stable. Why wouldn’t you want to hire someone like that?” Walters began looking for an ideal spot in which to live and start a career. He limited his choices to within a day’s drive of the family home in Hebron, and eventually settled on a town on the Tennessee-Virginia line called Bristol. Walters has never left Bristol despite many opportunities to do so. Over the years, however, Walters has grown the Friendship family from one dealership to 15 locations in six cities and three states. And the dealership family hasn’t just grown in size. The Friendship family has earned the distinction of the best dealership to work for in America. “That is the best business honor I have ever experienced,” Walters says. “Three years in a row and always in the top 50. We ranked number one in America year before last. I am so proud of our team.” He takes little credit for the growth of the company, though, preferring to spread it around. “I got where I am today because in addition to having a clear goal, a great plan and lots of hard work, I was able to surround myself with absolutely GREAT people. I have been blessed to have the best team in our region. From the leadership to the newest team member, I am able to work with the best. The Friendship team makes me look so good.” The only praise Walters readily accepts is, “I just know how to pick people. I don’t know a whole lot more than that. I don’t deserve much credit other than recognizing talent.” “I like Winston Churchill’s simple quote,” he says. ”’Never, never, never give up.’ If someone lives by this, lots of great things will get done.” Another quote Walters is fond of repeating is: “There are three kinds of people: Those who make things happen, those who watch things happen and those who wonder what just happened.” “I like this quote because I always try hard to make things happen,” Walters says. “Sometimes I make some not so good things happen, but at least we are not standing still.”
Through his support of notfor-profit organizations and his own good works, Walters has made many good things happen in the communities in which Friendship dealerships operate. “We try to never say no to a worthy cause,” Walters says. “Our Bikes for Kids program is a real winner. Hundreds of bikes are given away, one to any child who needs one. Once again, my great team takes care of most of this. My heavy lifting is more just signing the checks. I am blessed to have a great team who cares about giving. We plan to have a ‘Friendship Day of Giving’ in 2015 where the Friendship Foundation supports numerous worthy organizations.” “I am really in the people business. My family has been extremely supportive over the years, and I thank my wife and boys for all they sacrificed. Danea and I have been blessed with the two most amazing children…Brandon and Dustin. They are my best buddies and I am so proud that they are great fathers, husbands and businessmen in addition to being great sons. I have two wonderful daughters-in-law and six amazing grandchildren ages 5 to 11. We have a houseful and I am so lucky with such a great family.” Often when someone hears that kind of talk, it’s in the context of a statement such as, “I’m retiring to spend more time with my family.” In Walters’ case, that’s not in the cards anytime soon. “Are you kidding?” he asks. “What makes me tick is to stay busy. I love to multi-task. The busier I am, the better.” If anything, Walters is looking for more to do. Whether it be attending a leadership seminar with some of America’s top business leaders or talking with his newest employee about what it means to do things the Friendship way, Walters is always finding ways to improve the business. And while he’s honored by the
recognition Friendship has earned, Walters says he feels a great deal of work remains before Friendship reaches his goal of being not just the best dealerships in America to work for, but the best dealerships in America, period. And that’s good, because the man at the top is as driven as he’s ever been. “I’ve always looked at life as a gift,” he says. “I think my grandmother was right. Life is the game, not just practice – it’s the play, not a rehearsal.” “Work hard and play hard,” he concludes, “and make as many memories as possible.” That’s how Mitch Walters is ‘dealin’!
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Roy L. Harmon, Jr. And Mitch Walters Honored at Junior Achievement Business Hall of Fame By J. Kent Bewley
I
t was my privilege to serve as Master of Ceremonies for the 2015 Junior Achievement Business Hall of Fame celebration as we honored Roy L. Harmon, Jr. and Mitch Walters. The JA Business Hall of Fame celebrates business role models who have realized the American dream through ethics and responsibility, leadership, determination and giving back to their community and beyond. Roy L. Harmon, Jr. and Mitch Walters personify the ideals represented by Junior Achievement. Both men are highly respected in their communities and in their fields of endeavor. They are shining examples for our youth as outstanding role models. Congratulations to Roy and Mitch! I wish to express a sincere thank you
to the Hall of Fame Committee, the Junior Achievement Boards of Directors, the JA staff, and the many business and community leaders who share their experiences through their work by volunteering in the classrooms. They provide the inspiration for the students of our region to succeed in business and in life. It is so important for Junior Achievement to be the liaison for the business community and our students to continually perpetuate the free enterprise system. I have been involved with Junior Achievement for over 30 years. I am more excited and passionate today because throughout the years I have seen first-hand how Junior Achievement has impacted and made a difference in our youth. I have had the opportunity to be a JA classroom volunteer, which is a very rewarding experience. Thank you for your support. If you are
not involved with JA, we encourage you to do so. It will make a world of difference for our children – and for you. Let their success be your inspiration.
There’s No Place Like Home By Cathy Salley
W
ork Readiness. Financial Literacy. Entrepreneurship. Work Ethic. Capitalism. Living the American Dream. All that exemplify Junior Achievement and describes the two highly successful businessmen, Roy L. Harmon, Jr. and Mitch Walters, that we were honored to have inducted into the Junior Achievement Business Hall of Fame. Interestingly, Roy, a native of Kingsport,
and Mitch from Hebron, Ohio, were opposites around their college days. Roy had determined that he wasn’t coming back to Kingsport to live and Mitch had determined that Bristol was where he wanted to live. Thankfully, a young woman named Liza, was the reason Roy returned to Kingsport. And Mitch was looking for an ideal place to live and start his automobile career. My point of this is we hear so many of our youth say the same thing Roy said.
Today, thanks to Roy, Mitch, our past laureates and folks like them, our region is a great place to live, work and play. Hopefully, the Roys of today will have something that will bring them back home along with the Mitches of today that seek out the beautiful region we so take for granted and the opportunities for future workers and entrepreneurs. Many thanks to our Hall of Fame sponsors, contributors, volunteers, educators, board members and staff. To the Hall of Fame committee, a special thank you for your time and energy in helping make this year another success. Thank you Kent Bewley for the wonderful job you did as chair of the event. And, congratulations to Roy and Mitch! Junior Achievement staff, Jessie Rowland, Cathy Salley, Carol Hicks, Cathy Dean. Ambassadors Celeste Byerley and Collin Bazyk
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Special Section
2015 Hall of Fame Gala
Scenes from the 2015 Gala: Top left, Laureate Mitch Walters receives his award from 2007 Laureate Jim Street as 2002 Laureate Kent Bewley and Danea Walters look on. Top right, 2005 Laureate Steve Smith addresses the gala. Middle right, 2002 Laureate Lois Clarke speaks. Bottom left, Laureate Roy Harmon kisses his award as Bewley, 2013 Laureate Ken Maness and Liza Harmon look on. Bottom right, Street addresses the gala crowd.
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Laureate Advisory Board Of Directors Scott Niswonger Jim Powell
Regional Corporate Board Of Directors Kent Bewley, Chair Chaiba Bloomer Beth Edwards Rebecca Fuller
Lisa Gibson Crystal Hunley Steven Huret Walter Johnson
Randy Phillips Clark Phipps Karen Rowell Chad Wallace
Daniel Wolcott
Kathy Hall Kevin Horne Dr. Susan Kiernan Andy Marquart Gail Nixon Tamera Parsons Ryan Phemister Karen Rowell
Joseph Harvey Mark Hubbard Donna Johnson Rowena Lyons Kurt Steiner Emily Thompson
Area Boards Of Directors BRISTOL TN/VA AREA BOARD OF DIRECTORS Butch Downs April Eads Barry Matheson Barry Simms GREENEVILLE/GREENE COUNTY AREA BOARD OF DIRECTORS Daniel Wolcott, Chair Jerry Anderson Kent Bewley Hollie Binkley Tom Carlson Susan Crum-Teague Doug DeBusk Brenda Dickmann
Clay Hixson Dominick Jackson Walter Johnson Ginia Johnston John M. Jones, Jr. Mark Norman Steve Ottinger Hilary Porta Teresa Reaves George Scott JOHNSON CITY AREA BOARD OF DIRECTORS Chad Wallace, Chair Tim Burchfield Phil Carriger Scott Galpin
KINGSPORT AREA BOARD OF DIRECTORS Steven Huret, Chair Eric Barnes Amy Carter Rebecca Fuller Colette George Kevin Harbin
JA REGIONAL OFFICE STAFF Cathy Salley – President Carol Hicks – Office Assistant
Junior Achievement Business Hall of Fame Past Laureates 1994 Allen Harris, Jr. (1906-1992) John M. Jones James McGlothlin Robert H. Porterfield (1905-1972) James C. White (1890-1973) 1995 Larry Carrier (1922-2005) John C. Paty (1899-1975) Perley S. Wilcox (1874-1953) 1996 Clyde B. Austin, Sr. (1881-1966) E. Ward King (1896-1977) Robert S. Lane (1921-1992) Joseph W. Lawson (1913-2001) May Ross McDowell (1898-1988) 1997 Frank W. De Friece, Jr. (1921-2009) W. B. Greene, Sr. (1902-1987) W. Pat Jennings, Sr. (1919-1994) B. Carroll Reece (1889-1961) 1998 Giles W. Morrill (1930-1997)
1998 James J. Powell Toy F. Reid (1924-2009) 1999 Zella Moore Arnold (1906-1989) Earnest W. Deavenport, Jr. Scott M. Niswonger Jack C. Smith (1925-2007) 2000 John W. Andersen (1928-2006) Charles O. Gordon, Sr. (1920-2004) Woodrow W. McGlothlin (19142005) John D. Tickle 2001 Samuel H. Anderson, Jr. Louis H. Gump Thomas G. Hull (1926-2008) Frank L. Leonard 2002 Wallace D. Alley, Sr. (1926-2015) Kent Bewley Lois A. Clarke
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2002 Dan Mahoney 2003 Fred “Pal” Barger William B. Greene, Jr. 2004 C.M. “Bill” Gatton Stuart E. Wood (1938-2010) 2005 Wayne G. Basler Steven C. Smith 2006 Jeff Byrd (1949-2010) Mitch Cox 2007 J. Don Hill (1929-2011) Jim Street 2008 Richard Green R.T. “Rab” Summers
2009 J. Brian Ferguson Joseph R. Gregory 2010 Jerry L. Miller, M.D. Keith Wilson 2011 Mike Quillen R. Lynn Shipley, Jr. 2012 Dennis R. Phillips James P. Rogers 2013 Allen Johnson Ken Maness 2014 The Band Perry Family Kimberly, Reid, Neil, Marie and Stephen
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Past and present laureates: Kent Bewley, Mitch Walters, Pal Barger, Keith Wilson, Roy Harmon, Ken Maness, Jerry Miller, Steve Smith, Lois Clarke, Bill Greene, Louis Gump, Dennis Phillips, Jim Powell and Jim Street.
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Contributors REGIONAL PARTNER Scott & Nikki Niswonger AREA SHAREHOLDER Eastman Chemical Company COMMUNITY PARTNER Bank of Tennessee SCHOOL PARTNER Citi First Tennessee Foundation NN, Inc. Pal’s Sudden Service Powell Companies The United Company Charitable Foundation VENTURE CAPITALIST Alpha Natural Resources Bewley Properties, Inc./Towne Square, LTD Bristol Motor Speedway & Dragway Brock Services Food City Friendship Enterprises General Shale Heritage Community Bank High Road Digital/The Greeneville Sun J.A. Street & Associates John Deere Power Products Kingsport Times-News Regions Bank STRONGWELL The UNAKA Foundation US Nitrogen CLASS SHAREHOLDER Abatix Corporation AccuForce Andrew Johnson Bank – Greeneville BTES Baker, Donelson, Bearman, Caldwell & Berkowitz Keith Barger Duane & Heidi Barnes Bristol Broadcasting-WXBQ Bristol Herald Courier Citizens Bank Donaldson Company Dr. & Mrs. Bob Dorsey East Tennesee State University Egan Construction First Bank & Trust Fox Foundation Greene County Schools Greeneville City Board of Education Greeneville Light & Power System Holston Companies Hometown Realty of Greeneville Hunter, Smith & Davis, LLP JTH Engineering Dominick & Kathy Jackson Jim Moran & Associates Alan Jones
Mike & Susan Kiernan Kingsport Chamber of Commerce Laughlin Memorial Hospital Leonard & Associates Mahoney’s Mauldin & Jenkins Mitch Cox Companies Mountain States Health Alliance NETWORKS Northeast State Community College Pathway Medical Group Pave-Well Paving Company Pepsi Beverages Company Renasant Bank Karen Rowell Steven Short R. T. “Rab” Summers TEC Industrial Takoma Regional Hospital Tempur Sealy The Tombras Group Town of Greeneville WCYB/WEMT/CW WJHL News Channel 11 WalMart Distribution Center, Greeneville Wellmont Health System Willis Wilson Worley WorkSpace Interiors Youth Builders INVESTOR 8X Consulting C. Ray Adams Roy & Jane Adams Jerry & Sally Anderson Sam & DeLois Anderson Mike Ballard Brian Bartley Bill Gatton Honda Robert Blevins III Blue Ridge Properties Lee & Denise Brown Captain D’s Shirley Carrier Phil & Karyn Carriger Ceradyne, Inc. John & Etta Clark CORE, LLC Murray & Anita Deal Tommy & Cathy Dean Andy Delwadia, MD Gerald DePatis Brenda & Steve Dickmann Billy & Jennie Dickson Ron Dykes ETSU College of Business & Technology Enkore Salon Larry Estepp Gary Evans Paul & Missy Farnor First Community Bank Roger & Teresa France Friendship Auto-NC Frank Gray
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John E. Green, Jr. Peggy Greene Louis & Lucy Gump Bob & Virginia Gunn Duke & Kathy Hall Hamlett-Dobson Funeral Homes Kevin Harbin John Harris Joe & Hannah Harvey Heritage Community Bank Steven Huret James Hysmith Indian Path Medical Center Indian Ridge Animal Hospital Interstate Management Investment Company Isbell Jewelers Jim Cline Farmers Insurance Donna Johnson Walter & Rhonda Johnson Howard Jung Hans & Edna Kinner King University Scott Kudialis, CPA Dr. Herbert & Kathy Ladley Lexus of Kingsport Earl Lovelace David Luther Mahoney’s Marmo Financial Mick Marshall Tom McGlothlin Phil McLain McMillin Eyecare Jeff & Debbie McMillin Dr. Jerry Miller Lois Miller Moody Sprinkler Morris Baker Funeral Home Mountain States Foundation O’Neill Building Penn Tool Sales & Service Ryan Phemister Professional Miners Regional Eye Center Chris & Cathy Salley Skipper, LLC SleepZone Mattress Centers Sokal Media Group Jill & Andrew Stefanovich The Business Journal Tommy Tidwell Up Against The Wall Gallery Urology Associates of Kingsport Chad & Julie Wallace Jim Walters Catherine Wantuck Brenda Wood Tom & Dawn Wright ASSOCIATE Eric & Emori Barnes Ron & Kyung Bradshaw David & Amy Carter Deborah Caso
Don Ledford Automotive Center Corley’s Pharmacy Susan Crum-Teague Todd Ganger Scott Galpin Carol Hicks Terry & Jeanette Huret Alice & Bill Kirk Stephen & Adrienne Long Rowena Lyons Robert McGough Darlene McLeish Ginger Moody Sherri Mosley Becky Quillen Billie Redmond Reliance Diesel Bill & Lindy Riley Karen Sheets Derek Smith Chip Thomas Billie & Bill Whisnant FREE ENTERPRISE SOCIETY (REGIONAL) Contributors to the East Tennessee Endowment Fund John W. Andersen Mr. & Mrs. Sam H. Anderson, Jr. Mr. & Mrs. Jack Arnold BB&T Kent & Bettye Anne Bewley Bowman Jewelers Larry & Lois Clarke Frank & Nancy De Friece, Jr. Earnie Deavenport ETSU Physicians Eastman Chemical Company First Tennessee Bank Free Service Tire Company, Inc. General Shale Products, LLC Mr. & Mrs. Louis H. Gump Heritage Family Funeral Homes Judge Thomas G. Hull Jack King Johnson City New Car and Truck Dealer Association Keller Glasco, Inc. King Pharmaceuticals, Inc. Francis L. Leonard M & M Inc. Woodrow W. McGlothlin Mountain States Health Alliance Scott Niswonger Jim Powell Rotary Club of Kingsport Jack Smith SunTrust Bank Mr. & Mrs. John Tickle Triad Packaging, Inc. of TN The United Company
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Classroom Volunteers @WORK PERSONNEL SERVICES Mary Wagner 8X CONSULTING Steve Lauhoff Karen Rowell ACCUFORCE Dreama Parsons April Southerland Lori Waddle Alys Whipple ACT Baer Bradford Carrie Grooms Cody Harrell Katy Lewis ADVENTIST HEALTH Dee Winter AEP Jeff Cahill Bob Gilbert Rick Parker Gary Walker ALPHA NATURAL RESOURCES Teresa Anderson Brandy Barker Beth Bobo Everett Brown Hank Brown Heather Crook Matt Dickey John Dillow Keith Fenner Matt Franklin Robert Hutton Brad Lester Yuan Lin Matthew Lloyd Megan Meador Caroline Mitchell Miranda Mutter Grant Nacos Suzanne Owens Cristina Perez Randy Phillips Kristin Stiltner Joshua Tibbs Randy Webb Pat Wolfe ANDREW JOHNSON BANK Jim Austin Robin Back AT&T Eugene Radford BAKER DONELSON Chad Wallace BALANCED LIVES RESOURCES Ann Marie Byars BANK OF TENNESSEE Stephen Dixon
BARTER THEATRE Megan Atkinson BEWLEY PROPERTIES Kandice Bewley Baker Kent Bewley BLUE RIDGE PROPERTIES Colette George Ginger Nixon BRAD BAKER Brad Baker, Edward Jones Tiffany Tilley, Edward Jones BRISTOL MOTOR SPEEDWAY Evelyn Hicks Sheila Long BRISTOL TN ESSENTIAL SERVICES April Eads BROCK SERVICES Sally France Roger Hodges Dan Matherly Cindy Necessary Cavin Reed Karen Sheets CARE CENTERS MANAGEMENT CONSULTING, INC. Laura Steele CHARTER COMMUNICATIONS Angela Vicars CHARTER MEDIA Brent Herron Ben Thompson CITI Brandy Allen John Arnold Erin Bass-Gizzie Tammy Birch Ashlyn Davis Beth Edwards Pat Glover Kathey Haynes Kim Holbrook Alyson Markl Mickey McConnell Rebecca Morelock Maliaka Perry Kim Price Jonathan Purdie Johnna Riddle Amy Roberts Holly Samples Janet Smith Sandra Strough Beth Sluss Cheryl Vaughn COMMUNITY VOLUNTEERS Jerry Anderson Jordan Brown Krista Cole Susan Crum-Teague Cathy Damburg Reneau Dubberley
Tracy Edwards Rachel Fields Pat Glover Tarah Guinn Donna Johnson Holly Johnson Walter Johnson Whitney Jones Kim Kambas Brooke LaMere Debbie May Phillip McClain Tracy Peace Patti Pierson J.T. Putney, Jr. Diana Rowell CRETE DEFENDER, INC. Stuart Hoeke DONALDSON Tom Carlson EASTMAN CHEMICAL COMPANY Julie Byers Doug Chaffin Richard Eaton Mary Fanslow Tom Finnie Tanya Foreman Kevin Harbin Sharon Hardin Henry Hartsock Vic Hasler Glen Hawkins Cynthia Heglar Kim Horne Angie Jobe Todd Ketron Sherry Morelock Margaret Morrell Kristin Ketron Eric Kniedler Clark Parker Ryan Phemister Cathy Rosario Kristie Salyer Sara Scott Marc Strand Vivian Thacker Roger Thornburg Jonathan Wallace Natalie Whitlock Ellen Yates EASTMAN CREDIT UNION Jill Alley Amy Carter Terry Healy Allison Koth Pam Mahaffey Susan McDavid Jason Phillips Katie Quillen Tiffany Smelser Adam Walton Nikki Williams ETSU Stefanie Murphy FIRST BANK AND TRUST Debbie Davis
FIRST COMMUNITY BANK Leslie Osborn FIRST TENNESSEE BANK Rebecca Fuller Arch Jones Kathleen Patretta David Reynolds Israel Vance FOOD CITY Lavenia Dantuma Evalee Johnson Kim Lane Sandy Martin Brenda Sherfey Rhonda Smith Teresa Taylor GREENEVILLE FEDERAL BANK George Scott HOMETOWN REALTY OF GREENEVILLE Ginia Johnston HUNTER, SMITH & DAVIS, LLP Joseph Harvey INDIAN RIDGE ANIMAL HOSPITAL Dr. Michael Bunch JOHN DEERE POWER PRODUCTS Robbie Bailey JOHNSON CITY SCHOOL BOARD Kathy Hall JUNIOR ACHIEVEMENT Carol Hicks Cathy Salley KING UNIVERSITY Erica Seals KINGSPORT CHAMBER OF COMMERCE Nicole Austin Shanna Al Hadi KINGSPORT FIRE DEPARTMENT Barry Brickey KINGSPORT HOUSING AUTHORITY Amber Collins Sherrie Whisnant KINGSPORT METS PLAYERS KINGSPORT POLICE DEPARTMENT Joe Earles
MOUNTAIN STATES HEALTH ALLIANCE Kara Battell Tamera Parsons
SULLIVAN COUNTY DEPARTMENT OF EDUCATION Jody Reznicek
NORTHEAST STATE COMMUNITY COLLEGE Gary Byington Jeff Coalson Cory Cole Robin Dice Darren Ellenburg Vickie VanHall Jim Henrichs Beau Joyner Paulette Kehm Gary Lee Sharon Mason Jeff McCord Dr. Rick Merritt Deven Neubrander Sam Rowell Jim Sell Shawna Shaffer Cindy Tauscher Kim Tipton Marquitta Tittle Nicole Young
TENNESSEE ELECTRIC COMPANY Sandy Buchanan
PAL’S LeAnne Johnson Eric Lane Matt Larkin Thomas Roark PATHWAY MEDICAL Stacy Hampton PIZZA PLUS Greg Palmer REGIONS BANK Brian Adams Ashley Alley Chaiba Bloomer Laura Kent Vanessa Kimbril Curtis Leavitt Craig Mullins Sharon Rogers Chris Vaughn Cari Whitman Mark Williams RODEFER MOSS Maria Adams Kirk Horner Jeff Little SARATOGA TECHNOLOGIES Eric Pardue SCOTT CO. TELEPHONE CO-OP Rebecca McDavid SLOOPY’S RESTAURANT Steve Warren
LINCOLN UNIVERSITY Karla Leybold
STATE FARM INSURANCE Jackie Peevyhouse
MCMILLIN EYECARE Ginger Moody
STONEGATE MORTGAGE Dee Bardes
THE NISWONGER FOUNDATION Scott Niswonger TOWN OF GREENEVILLE Shari Oster TRISUMMIT BANK Brent Mullins Angela Ricker TRUPOINT BANK Wayne Anderson Jennifer Flynn TUSCULUM COLLEGE Dr. Michelle Freeman Tony Galloway UBS FINANCIAL Steve Clark UNITED WAY – KINGSPORT Stephanie Crandell Megan Miller US NITROGEN Erin Chandler David Gass VALLEY VIEW ANIMAL CLINIC Dr. David Redwine WELLMONT HEALTH SYSTEM Amanda Blevins Ashley Bright Linda King Rowena Lyons Rhonda Reeves Patricia Short Tim Smith Eric Southerland Michelle Sproles WILSON WORLEY PC Steven Huret WCYB/TV5 Preston Ayres WKPT Stephanie Gilbert Jessica Larkin Jerreese Rockwell WJHL NEWS 11 Kasey Marler WORKSPACE INTERIORS Bob Feathers YMCA Andy Wooten
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2015 JA Business Hall of Fame Sponsors Thank You, Tri-Cities TN/VA Junior Achievement is supported solely by the business community, individuals and organizations which view our mission as an investment in the American system of competitive private enterprise. Founder Eastman Chemical Company Premier Sponsor Scott and Nikki Niswonger Laureate Sponsor Bank of Tennessee Presenting Sponsors Citi Electro-Mechanical Pal’s Sudden Service Powell Companies The United Company Charitable Foundation Hall of Fame Partner Food City, Inc. Friendship Enterprises Reception Sponsors STRONGWELL Bewley Properties, Inc./Towne Square, LTD Brock Services J.A. Street & Associates Regions Bank Corporate Table Sponsors BTES Bank of Tennessee Bristol Broadcasting-WXBQ East Tennessee State University First Tennessee Foundation Friends of JA/The Business Journal of Tri-Cities TN/VA Friends of JA / WJHLNews Channel 11 General Shale High Road Digital/The Greeneville Sun Hunter, Smith & Davis, LLC Jim Moran & Associates, Inc./Bristol Herald Courier
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Kingsport Times-News Mauldin & Jenkins Mitch Cox Companies Mountain States Health Alliance NETWORKS Scott & Nikki Niswonger Renasant Bank The Tombras Group WCYB/WEMT/CW Wellmont Health System
Media Sponsors The Business Journal of Tri-Cities Tennessee/Virginia
Congratulations Roy Harmon!
2015 Junior Achievement Laureate
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BankofTennessee.com
Bank of Tennessee is proud to congratulate Chairman and CEO Roy L. Harmon Jr. on recently being named a 2015 Junior Achievement Laureate. Roy’s commitment to education and work readiness has led to the success of countless leaders throughout our region. Thank you, Roy on behalf of the employees of Bank of Tennessee and the future leaders of the Tri-Cities. BJournal.com | June 2015 | The Business Journal of Tri-Cities TN/VA
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| FEATURES
Jim Green talks with employee Rick Boling on a job site. Photo by Jeff Keeling
Small businesses and insurance: “Nobody’s happy.” By Jeff Keeling
J
im Green strides through the nearly complete athletic fieldhouse at Johnson City, Tenn.’s Science Hill High School, stopping to check with valued employees of his third-generation contracting business. It’s a family atmosphere even on the job site of a J.E. Green Co. project, and Green is clearly comfortable with his men. Like many other small, family-owned businesses around the Tri-Cities do, J.E. Green provides certain of its employees with health insurance and has done so for years. “We had decided years ago the benefit was a nice one to provide for our employees,” Green says. But since that decision more than two decades ago, insurance costs have risen inexorably, usually faster than inflation, and like many other area small businesses, J.E. Green has faced the challenge of what to do. “In the ‘80s and ‘90s it was affordable,” says Green, whose company pays 100 percent of the premiums for senior em32 The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
ployees. “It’s gone up, and your employees are accustomed to those benefits, but their raises for the most part in the last several years have been going to cover increased health care costs.” That was before the introduction of the Affordable Care Act. When enrollment time came last fall, it was the first year under the new law. “Where things were going up maybe 10 percent a year, I think the last time it was going to go up nearly 25 or something like that,” Green says. (BlueCross BlueShield of Tennessee’s average premium increase for the current coverage year was 19 percent.) Something finally had to give. In Green’s case, it was the level of benefits within the plan. “We changed this year (last fall) from what our employees termed ‘good insurance’ with a pretty low deductible to a high deductible plan,” Green says. “It’s costing the company less. Of course, as the
employees have a need more is coming out of their pocket.”
Is it going to get better? Green says he doesn’t have any sense about whether the increases are on track to flatten out. A mile or so away from the job site, Jay Larshus has much more knowledge than Green, who says he just sits down with his office administrator every year and deals with whatever the numbers say. But Larshus, who writes individual and small group plans for Cambron Insurance, says he only has answers for the moment, because the constant change he’s seen in 20 years in the market has only accelerated over the past couple of years. With insurance companies just a few days from releasing their initial premium increase requests, Larshus says, “it’s too early to tell” whether hefty rate increases will continue. “Blue Cross has had only one year
so far,” Larshus says. “Their rate increase was roughly 19 percent on average from last year, but the biggest factor there was, they overestimated how many younger people were going to sign up.” Indeed, a few days after Larshus’s comment, BlueCross BlueShield requested an average increase of more than 36 percent, citing among other things that it had underestimated how many claims new enrollees would file, as well as the cost of those claims. Blue Cross’s “silver” plan offered as part of the ACA exchange was its most popular, and was among the least expensive in the country. As for younger people, Larshus says it’s likely more of them will eventually sign up for insurance as the numbers game tilts against them. Last year, the IRS penalty for not carrying insurance was the greater of $95 or 1 percent of household income for an individual, up to $285 for a family or 1 percent of income. That is set to rise to $325/$975 and 2 percent of household income in the insurance year that begins late this year, and $695
“
We expect the newest technologies all the time in medical treatment. Well, that’s a big driver of cost. - Jay Larshus
per individual and 2.5 percent the following year. The percentage of income penalty is based on amount of income above the tax filing threshold, which is currently $10,150 for an individual. For an individual with a $40,000 annual income, within a couple of years the penalty for remaining uninsured would be somewhere around $750. A family of four with a $75,000 income would pay $2,085. A quick look at healthcare.gov’s explanation of the fee calculations shows just how complex the whole law is.
That uncertainty in the ACA health exchange market is certainly affecting independent contractors and other customers who have paid and continue to pay for their own insurance, Larshus says. “You’ve just got to deal with whatever comes along,” he says. “I personally don’t see it being overturned, but who knows? It definitely has to be tweaked, in my opinion, because there’s too many bugs. I would just say it should have been much simpler than it has been.”
Many small businesses dropping coverage Small employers who were already providing coverage before the ACA – the J.E. Greens of the world – certainly aren’t getting a rate savings since the advent of the exchanges, Larshus says. In fact, where they often can get a savings now if they have fewer than 50 full time equivalent employees is by discontinuing coverage and letting their employees turn to the exchanges. “That was happening before the law, too, because of the rising expenses,” Larshus
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TriCities1/2page_Tri=Cities Business Journal 3/27/15 8:42 AM
Jay Larshus Photo by Jeff Keeling
says. Now, though, those employers who stuck with it, “maybe because some longstanding employee of theirs couldn’t get health coverage on their own,” aren’t leaving their employees completely in the lurch. In fact, the employers and their employees can sometimes come out ahead, Larshus explains. “If you have a group of five and they have an average rate of $600 (monthly) because it’s a higher age demographic, the small employer could probably only afford to pay half, so the employer and the employee were each having to pay $300. Now with the subsidy, the employee may be only paying $100 for a policy.” Theoretically, that leaves the moderately paid employee with what is in effect a raise in take home pay, and the employer with additional margin as well. Of course, what that really amounts to is a taxpayer-subsidized break for the businesses that have chosen to drop coverage. The small businesses who have maintained coverage, on the other hand, “aren’t Page 1 really getting a rate savings,” since
the ACA, Larshus says. Likewise, individuals who were already buying insurance before the ACA, are fairly healthy, and are in grandfathered plans that are set to expire, “are generally in for a rate shock when they find out they have to switch to one of the new plans,” Larshus says. One reason is that the ACA plans spread risk more evenly, so younger and/or healthier individuals pay higher premiums than they would have before the law.
There have been winners Prior to the ACA’s passage, few people, or politicians, on either side of the fence would have argued that health insurance didn’t need changes. Larshus says the biggest issues were denial of coverage for people with pre-existing conditions, and insurers’ option to “rate up” people with negative health factors. Low and moderate-income workers, if they didn’t qualify for Medicaid (TennCare) also were unlikely to be able to afford insurance. Larshus remembers conferring with
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people in their late 50s and early 60s who may not have been in the best of health and were considering early retirement – until they learned how expensive their health insurance would be until they qualified for Medicare. “Financially, they were probably in good enough shape to retire, but they didn’t factor in having to pay $1,500 a month for health insurance,” he says. Under the ACA, the average premium for those people is significantly lower. Then there is the case of a 62-year-old woman who came to Larshus when the law first came into effect. She hadn’t had coverage in around a decade and was only making around $13,000 a year. “She qualified for a zero deductible, $550 maximum out of pocket health plan,” Larshus says. “Her premium was $3.96 a month. The subsidy picked up the rest of that, which is our tax dollars, from that standpoint. But she literally was in tears because she finally had health coverage after a decade or so without it.” The low deductible and out of pocket costs for that customer were down to another bit of subsidy – “cost sharing” that triggers at a certain income level and becomes more robust the lower the income.
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Change the one certainty Larshus reckons he’s lost two-thirds to three-quarters of his small groups over the past five to eight years. “Some of it was leading up to this (the ACA) because they just couldn’t afford it anymore, or they went out of business with the economy the way it was in 2008.” Plenty more have dropped out since the ACA came into effect. Larshus also has seen colleagues in the business drop out, with uncertainty in the market and increased training requirements both playing a role. “It’s pretty early in the process to know what it’s going to be like five years from now.” He’s not comfortable taking a guess at whether rate increases will level off, either, but Larshus does point to two factors unrelated to the new law that have had a great effect on health care costs. “There are a lot of factors involved, but one thing that’s not talked about in my opinion is technologies,” he says. “We expect the newest technologies all the time in medical treatment. Well, that’s a big driver of cost. So whether everybody’s insured or not, or whatever law you want to pass, it doesn’t really take that into consideration.” Larshus says despite a lot of “carrots” now on offer for people who couldn’t previously afford insurance, incentivizing change on the consumer side still has a way to go. “The law still doesn’t take into consideration lifestyle. We’re becoming more and more unhealthy as a nation.” Back at the field house job site, Jim Green says that in the case of J.E. Green, the health insurance element of employee pay and benefits has been a roller coaster ride of stress for a number of years now. “It was tough last year when we had to make that call to either ask employees to start paying (part of their premium) or switch plans,” Jim Green says. “I know most employers do have their employees pay a certain percentage, but we’d started a long time ago paying it all, and it’s just hard to get off that track. But again, we’ve continued to have health insurance instead of pay raises from time to time. Nobody’s happy about it, but I think they understand.” BJournal.com | June 2015 | The Business Journal of Tri-Cities TN/VA
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| FEATURES
The production floor at Heritage Glass stands idle. Photos by Adam Campbell
Empty glass: Fledgling manufacturer shuts plans, seeks funds By Jeff Keeling
P
roduction shutdowns; unpaid employees; a capital shortage – it wasn’t supposed to be this way when a group of glass industry veterans opened Heritage Glass in Kingsport’s former AGC North America Blue Ridge glass plant. But as the Business Journal prepared to go to print June 5, production at the plant was shut down temporarily as President Eric Kerney and other company directors sought financing help, less than a year after Heritage started producing solar glass in an effort Kerney said at the time was, “all about jobs.” The earliest the plant could begin meeting demand, one company director said June 4, would be in about three months due to some needed equipment that applies a recently developed anti-reflective coating to the solar panels. Echoing statements Heritage has made in several official releases since early May, when reports began surfacing about troubles at the plant, Heritage Director Vic Davis said the company was undercapitalized. 36 The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
In an interview with the Business Journal, Davis went much further in explaining details of Heritage’s difficulties – and its hopes for a viable recovery – than any of the company’s official releases had. Heritage, he said, still has promise to become a profitable manufacturer, as it is the only domestic supplier of rolled pattern solar glass, with the U.S. market currently supplied by Chinese companies. “The only other option is the Chinese, and quite frankly they’ve got to put glass on a boat for 10,000 miles,” Davis said. “We’ve got a lot of advantages. We can ship to two-thirds of the U.S. market within two days. Our glass will produce .5 percent more transmittance for power than anybody’s glass in the world, and we can do that consistently. It has to do with the raw materials that we use, it has to do with our proprietary patterns in the manufacture of our glass. That’s a proven method that we have learned in the last three months.”
None of that will matter much, though, if Heritage doesn’t find investors willing to take a calculated risk and pump significant financing into the operation. Davis said two main factors contributed to the current cash crunch. “We did not recognize how long it would take to get back into a very competitive solar market,” said Davis, whose construction company did much of the hauling of raw materials for Heritage. “Secondly, we’ve learned in recent months the necessity of new technology and a new ARC coating (anti reflective) that the solar world is demanding.” Davis said company leaders are pulling out all the stops seeking enough to get Heritage recapitalized and to pay for the new equipment that applies the coating. He said that equipment is in Italy and would take three months to get to Kingsport, install, and put into production – if the company is able to procure the necessary funds.
“I think we can prove without a doubt that By the end of May, though, the company had we’re a great investment,” Davis said. “We’ve got announced what it called a temporary suspenprojections. The only thing we lack is the new sion of manufacturing operations. The shutdown technology for the coating and then we are a vi- of a company that received national industry able alternative to the Chinese. Until we do that exposure when it started up and was named a we’re not. That’s really what came to light. We’ve 2014 Business Journal Impact Award winner got a good coating, but there is a great coating out occurred May 27. there now. We can provide any potential investor The industry expert said Heritage’s investors with a very good story on rate of return. It will be and backers were venturing into an industry sega moneymaker if we can find somebody that has ment – solar glass – that remains very volatile. confidence in us.” “It’s not a mature product segment and Sullivan County’s primary economic de- has had incredible ups and downs the last five velopment official and an industry expert both years,” said the source. “These guys that created said they’re pulling for the company, which is Heritage, I think they had the right ideas and comprised of some veterans who cut their teeth experience level. I think they got caught in the in other Kingsport-area volatility of the industry glass operations including and the pricing and they the Blue Ridge facility, but just couldn’t ride the neither sounded overly out.” The deal’s not dead yet. The storm optimistic. Davis, though, guys running this company are said Heritage hadn’t yet “Sometimes economic development groups doing everything they can and reached its biggest potenand governments can only volumes prior to the nobody has any more direct tial do so much,” Networks recent shutdown, because interest in it than they do. customers wanted the CEO Clay Walker said. The Kingsport Economic majority of their glass to Development Board purthe new coating. - Clay Walker, Networks CEO have chased the plant with $2.6 “When we made the million of public money decision to close it’s be(Heritage bought the cause we could not meet equipment and remaining the demands that the big contents) and entered a 15-year lease-purchase solar market was demanding.” agreement with Heritage. The overall investment Even so, he said, “we had doubled our announced in late April 2014 was nearly $16 business from January, February, March, April million. “We can’t make businesses successful, … we truly believe we’ve got a viable business we can just try to give them every chance within because of the fact that we’re the only roll patour power, and that’s what we’ve been doing,” tern glass company in the United States that Walker said. makes low E glass for the solar PV (photovol Said the industry expert, who has more than taic) manufacturers.” a quarter-century of experience in all levels of the Since Heritage hadn’t yet started delivering glass industry and wished to remain unnamed: the other type of coated glass, potential custom“They probably needed to diversify what they ers for it have still been using Chinese sources, were going after – being a standalone solar sup- Davis said. That could mitigate the industry plier was going to be a tough go, especially in the source’s concern that existing customers would beginning.” suffer the extra expense of having to find tem The problems surfaced barely a year after porary supply sources. Another of his concerns, state and local officials announced the plans though, is one to which Davis also referred. – aided by the lease-purchase agreement and “They’re still having to compete with offstate grants, including $500,000 in cash – to shore pricing that’s incredibly cheap,” the source create 120 jobs by mid-2014 and nearly 250 said. Davis said it went deeper than that. within five years. AGC had shuttered operations “One of the biggest problems we face is that at the facility in late 2012. Reports trickled out the Chinese are notorious for dumping their about employees not being paid, at which time glass in our market at below market costs,” he Heritage released its first statement referencing said, adding that European countries have beundercapitalization. That early May statement gun attempts to combat those practices through noted the company was, “continuing to produce regulation. a quality product that is a key component to this SEE GLASS, 38 country’s renewable energy efforts.”
“
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GLASS, CONTINUED
“We really need some government help to subsidize if the Chinese are going to do it. If they’ll compete straight up with us, they won’t be able to touch our product.” Still, the source said an extended period without production will hurt. “When they do get capital, there’s going to be a lag time of getting back up. It’s going to be a big time uphill climb for them. “It’s heartwrenching, because I see what these guys wanted to do, and I feel for them. It was noble. All the factors involved were against them.” Despite all that, the source didn’t think the local government investment was a bad bet. “I think they probably had a pretty convincing case, and glass is not going to go away,” he said. “That plant does have potential someday of supplying commercial auto, residential glass and maybe even solar. I wouldn’t blame the city. They obviously didn’t know the cash burn would be as intense as it was and that the (product) diversity that was needed wasn’t truly there.” Walker, too, said the KEDB, “covered every base they could cover. It’s a hit. There’s a monthly payment that KEDB will have to step in and cover.” The Heritage investors, including Kerney, “still have everybody behind them,” he added. “The deal’s not dead yet. The guys running this company are doing everything they can and nobody has any more direct interest Then-CEO Chris Cording and President Eric Kerney in 2014. Cording is no in it than they do. This is everything to them. If it doesn’t work you longer affiliated with the company. regroup, but we have some contingencies and some people to talk to in the event that they are unsuccessful in getting the production cranked back up.” Walker said KEDB covered every base it could in vetting the Heritage proposal, that he feels comfortable the community can eventually recoup its investment, and that he still thinks it was a good deal. “There’s only one way to make sure you never do anything that can be second-guessed or Greene School of business and technology criticized in economic development or government as a whole, and that’s to not do anything to move forward,” Walker said. “Communities MAJORS ADULT DEGREE have to be involved in economic development, COMPLETION Accounting, Applied Finance, they have to do things like that, or they’re not Business Administration, Finish your degree! going to make it.” Computer Information Systems, w Business Administration For his part, Davis said the story of Heritage Computer Science, Economics, w Computer Information Systems remains one that is about trying to create jobs in Engineering (Fall 2016) Kingsport. THE MILLIGAN MBA “Our whole focus was about Kingsport, it was for more info visit: about jobs and it was about opportunity,” Davis BEABUFF.COM w Healthcare Management said. “If we truly want American jobs to stay in w Leadership America, then we’ve got to support it. We’ve got a w Operations Management product here that’s worth supporting. We’ve had Executive certificates available to shut down because of the cash flow crunch, but we still have a group of dedicated people that are working as hard every day right now, and of course what we’re working on is raising capital. We’re still shipping glass. “It’s unfortunate we didn’t capitalize it properly up front.”
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| FEATURES
Worthington to expand operations in Greeneville, Middle Tennessee By Scott Robertson
W
orthington Industries is betting heavily on Tennessee’s continued success as a home for automotive suppliers, and Greeneville’s economy will be a beneficiary. The company announced June 2 that Worthington Industries in Greeneville, will expand its operations manufacturing custom-engineered operator cabs for industrial mobile equipment. The expansion will result in a $14,250,000 capital investment, the addition of four new product lines and more than 140 jobs. The impact on the economy will be broad, according to a release issued by the company. New employees will be hired for all areas of operation, including fabrication, welding, painting and assembly. Positions are also available for manufacturing and quality engineers. The application process has already begun. “We are pleased to expand the facility and add to the workforce in Greeneville,” said Worthington Industries Engineered Cabs President John Lamprinakos. “We appreciate the support of the Greene County Partnership, Tennessee Valley Authority and state of Tennessee as we develop this facility into a fullyintegrated LEAN manufacturing operation focused on safety, quality and delivery.” “The addition of more than 140 jobs is a huge win for Greene County,” said Greene County Partnership Chairman Chris Marsh, “and will significantly help the county’s 7 percent unemployment rate while also boosting the county’s economy.” “This project was competitive,” added Greene County Partnership President Tom Ferguson. “The new welding programs available through the Greene Technology Center and
Walters State Community College’s Workforce Solutions Center gave Greeneville the advantage of a skilled workforce, while the state of Tennessee and Tennessee Valley Authority provided attractive incentive packages.” Worthington’s Greeneville facility, located in Hardin Industrial Park, was established in 1999 as AngusPalm Industries. It was acquired by Worthington Industries in 2012 and currently has 315 employees. Worthington Industries, a leading diversified metals manufacturing company, is headquartered in Columbus, Ohio, with 2014 fiscal year sales of $3.1
billion. The company employs more than 11,000 individuals worldwide, has 83 operations located in 11 countries and has been named one of the “Best Companies to Work For in America” by FORTUNE magazine four times. Worthington also announced its tailor welded blanking joint venture with Wuhan Iron and Steel Co., TWB Company, LLC, will open a new 120,000-square-foot facility in Antioch, investing $18 million and creating 45 new jobs there. That facility is scheduled to be up and running by October. It will serve Nissan and General Motors.
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| ON THE MOVE Banking and Finance Jeff Blake, a financial advisor with the Johnson City Branch of Wells Fargo Advisors, has been named first vice president-Investments/ Jeff Blake investment officer. Blake has served with Wells Fargo Advisors for 15 years and has 20 years of experience in the financial services industry. Blake holds a B.B.A. in Finance from East Tennessee State University. He is a member of the East Tennessee State University Foundation & Eastern Heights Presbyterian Church in Bristol, Tenn. Blake lives in Jonesborough. Bill Dunham, a financial advisor with the Johnson City Branch of Wells Fargo Advisors, has been named first vice president-Investments/ investment officer. Bill Dunham Dunham has served with Wells Fargo Advisors for 14 years and has 15 years of experience in the financial services industry. Dunham holds a B.A. in English from Tusculum College. He is a member of St. Mary’s Church and the Johnson City American Little League. Dunham lives in Piney Flats with his wife, Bonnie.
vice president and business development manager. “We welcome Garnet Lester to our banking family,” said Ed Stringer, president and C.E.O. of The Bank of Marion. “Garnet brings with him a wide and deep knowledge of all aspects of bank management and he understands the importance of personal relationships in community banking. He is also very experienced in branch management and commercial lending. We’re glad to have him on our team.”
Economic Development Bristol, Tennessee has a new business specialist, Tom Anderson. Economic and Community Development Director Shari Brown recently announced the Tom Anderson selection of Anderson, a veteran community and economic developer. “Tom’s education and experience made him our top choice. With his efforts we feel that we can take this department to the next level of service. He will be an asset to the city as we look for new ways to work with businesses, add jobs and grow Bristol for the next generation,” Brown said. Anderson’s duties will include coordinating the city’s economic development activities with NETWORKS Sullivan Partnership, the Chamber of Commerce, the Convention and Visitors Bureau, other Garnet F. Lester, an experienced government agencies, private enterprise, banker from the Richlands, Va., area is the civic groups and the general public. He will new manager of The Bank of Glade Spring, also be working with the Bristol Tennessee a branch of The Bank of Marion. Lester reIndustrial Development Board. Anderson places former branch manager Brent Dyson, will assist in planning strategies to attract who was recently promoted to assistant new businesses to Bristol as well as encour-
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aging expansion and retention of existing businesses to promote a stronger economic base. Anderson previously worked as the President of Carter County Tomorrow, a community and economic development organization that includes Workforce Development, Tourism Council, Chamber of Commerce and Economic Development Commission. Prior to going to Carter County, Anderson served as East Tennessee State University’s Director of Economic Development. He holds a BS degree in Business Administration from the University of Southern Mississippi in Hattiesburg, MS and is pursuing his Masters in Public Management at ETSU.
Higher Education Dr. Greg Harrell has been appointed as director for the Milligan College’s new engineering program scheduled to launch in fall 2016. For the past two years, Harrell has served as the college’s lead technical consultant to develop the four-year engineering program, which will offer two majors, mechanical and electrical engineering, on Milligan’s campus. Harrell has taught at Virginia Tech, the University of Tennessee, North Carolina State University and the University of North Carolina-Charlotte. He previously served as a design engineer and utilities process engineer for BASF Corporation and currently is a senior associate with Energy Management Services, where he has conducted energy assessments and training for industrial clients on six continents in 28 countries and 39 U.S. states, in addition to work for the U.S. Department of Energy and the United Nations. He holds bachelor’s and master’s
degrees in mechanical engineering from the University of Tennessee and a Ph.D. in mechanical engineeringthermodynamics from Virginia Tech. He is a member of Jefferson Dr. Greg Harrell City Christian Church in Jefferson City, Tenn. According to Milligan President Dr. Bill Greer, there has been significant corporate interest in Milligan’s engineering program, the region’s first and only mechanical and electrical engineering degrees. TPI Corp in Gray, Tennessee, provided funding for a new electrical engineering laboratory, and several other companies are interested in providing co-op, employment and scholarship opportunities. The program also received several large gifts, including two separate $1 million dollar donations, laying the groundwork for its launch. Pamela S. Ritter has been named vice president for University Advancement at East Tennessee State University. She will
assume these duties July 20. Ritter comes to ETSU from Purdue University in West Lafayette, Ind., where she spent the past 27 years as a senior-level fundraiser working in major gifts, corporate relations, alumni relations and administration. As senior director of Corporate Relations at Purdue University since 2004, she led the corporate relations effort toward raising $450 million of the successful $1.7 billion “Campaign for Purdue” project. She also managed the corporate relations team in raising an average of $30 million in gifts as well as $20 million in in-kind gifts for the past 11 years. Her duties also included developing long-range strategic plans and assisting university-wide programs with fundraising activities. From 2004-09, Ritter managed Purdue’s Office of Corporate Relations and regional advancement offices in Chicago and Indianapolis. She joined the Purdue University team in 1987 and held other titles, such as director of Class Gifts and director of Development for the College of Technology, before moving into corporate relations.
“We are very fortunate to have recruited a fundraising expert of this caliber to lead the advancement efforts for East Tennessee State University,” said ETSU President Dr. Brian Noland. “Ms. Ritter has Pamela Ritter been a highly successful fundraiser for nearly three decades and has a proven record in working with businesses, alumni, faculty and staff, and students. She joins ETSU at a time when giving and pledges to our Foundation are the highest they have been in the past five years and total fundraising efforts have increased by 46 percent over last year. “She will also provide valuable leadership for our Arts Initiative as we move closer to breaking ground for our $38 million fine and performing arts facility,” Noland added. Prior to working in fundraising, Ritter spent four years as a schoolteacher in Indiana and was a district representative for the American Cancer Society.
BRIS TO L
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| AWARDS & ACHIEVEMENTS Wellmont’s Pope among “CFOs to Know” Becker’s Hospital Review recently named Wellmont Health System CFO Alice Pope one of the 150 Hospital and Health System Pope CFOs to Know for 2015. “We are continually impressed with Alice’s high-caliber leadership, which has enabled us to secure the financial resources we need to deliver exceptional care to our patients,” said Bart Hove, Wellmont’s president and CEO. “Alice is always looking for ways to strengthen our balance sheet and has developed innovative approaches that have made a positive difference in our organization. In an era of reform where this type of thinking is necessary more than ever, we are grateful to have Alice guiding our financial team.” Pope has served as Wellmont’s executive vice president and CFO for three years
and oversees about $800 million in annual revenue. One of her primary achievements has been to restructure Wellmont’s debt to lower the health system’s interest rate to about 3 percent, which has reduced interest expense by $2 million annually. The health system has also revamped its revenue cycle operation using the Epic electronic health record platform. Her selection as one of the top CFOs in the country is the latest honor Pope has received from Becker’s. The publication, which writes about business and legal information for health care leaders, has chosen her three times as one of the top female hospital and health system leaders to know. “I am grateful for the recognition from such a respected third-party source but know this honor would not be possible without support and ingenuity from others in the finance department, as well as the executive leadership team, board of directors and key committees within the organization,” Pope said. “Together, we have developed a fiscally strong organization focused on finding ad-
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ditional ways to serve our valued patients even more efficiently and effectively while continuing to deliver high-quality care.”
Jones named to Credit Union Hall of Fame At the recent Tennessee Credit Union League Annual Meeting and Convention, TriCities based United Southeast Federal Credit Union (USFCU) CEO, Janice Jones was named to the Tennessee Credit Union Hall of Fame. The Hall of Fame award is given each year to recognize the commitment, leadership and dedication that deserving individuals have made to the credit union movement and is selected by a committee located outside of the state. “I have known Janice for more than 35 years,” said USFCU Board Chairman Ray Feagins. “This award is a reflection of the leadership and skills she brings to USFCU. I have been a member for numerous years and have served the credit union in board and supervisory committee roles for more than 15 years. She is a proven professional and I have great confidence in her leadership. As a
United Southeast Federal Credit Union CEO Janice Jones receives her hall of fame induction award at the Tennessee Credit Union League Annual meeting. (L-R) Sandy Swofford, Sr. VP. Marketing at Volunteer Corporate Credit Union, Janice Jones, CEO of United Southeast Federal Credit Union and Fred Robinson President of the Tennessee Credit Union League.
human resource executive I have heard the saying, ‘People do not care about how much you know until they know how much you care.’ Janice is the epitome of this. True leaders care about others. She truly cares not only about the members of the credit union, but also about the employees. She is a true leader.” Jones’ career at United Southeast Federal Credit Union has spanned more than four decades. She has served as a clerk, frontline teller, in human resources, in the accounting department, as executive vice president, and as chief operations officer prior to her current position during her 45 years within the organization.
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FOR MORE INFORMATION CALL 423-989-7200 BJournal.com | June 2015 | The Business Journal of Tri-Cities TN/VA
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| MED BRIEFS Wellmont Foundation pursues center for women and infants at Holston Valley Strong community support enabled Wellmont Foundation to meet its $2.5 million goal to enhance services available in the neonatal intensive care unit at Holston Valley Medical Center and move it to a bigger space in the hospital. Now, Holston Valley is embarking on another project, unveiling a $2 million fundraising campaign to create a Center for Women and Infants that will consolidate services such as the birthing unit, post-partum care, the NICU, pediatrics and gynecology on one floor of the hospital. One of the cornerstones of the plan will be creation of a separate entrance and elevator to take patients and family members to that area of Holston Valley. “We’ve been honored to serve Kingsport and other parts of the region with high-quality health care for 80 years and are excited to embark on these next initiatives that will further position us as the hospital of choice,” said Tim Attebery, Holston Valley’s president. “This next phase of progress will enhance the comfort and convenience for our patients and ensure that excellent care remains close to home.” Representatives of Holston Valley, the foundation and Wellmont Health System participated in a news conference last month at the hospital to discuss the completion of the Next Generation campaign that was initiated in 2014 for the NICU. They also kicked off the Holston Valley Generations campaign,
which will raise the necessary funds to place all women’s and infants’ services on the hospital’s third floor. “Our region has been extraordinarily generous in supporting the needs of the women and children we are privileged to serve,” said Todd Norris, the foundation’s president and Wellmont’s senior vice president for system advancement. “We are grateful to the community for backing our NICU project and invite others in the region to further strengthen the services we offer women and infants in this new campaign.” The foundation launched the Next Generation campaign to bolster the caliber of care in the NICU, which Holston Valley has operated since 1986. These funds will empower Holston Valley to achieve multiple goals, including: Doubling the amount of room for each newborn, building a specialized procedures room for patients needing invasive treatments, creating a dedicated isolation room that will contain negative air pressure and specialized filtration, and opening a private step-down room for parents to spend the night with their child before returning home. Community backing for this campaign included major gifts and Children’s Miracle Network Hospitals funds. Wellmont is the Children’s Miracle Network affiliate for Northeast Tennessee and Southwest Virginia, and all money raised in this area stays local to improve children’s health. Attebery said Holston Valley plans to start construction on the NICU project in August and complete it in early 2016.
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44 The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
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| THE LAST WORD
The American Health Care Reform Act By Congressman Phil Roe
O
n Monday, June 1, the Obama Administration released ObamaCare rate requests from health insurance companies for 2016. It comes as no surprise that many insurers have proposed rate increases of more than 20 percent, citing rising medical and prescription drug costs. So despite the president’s promise to lower health care costs, his law has driven prices in only one direction—up. As families and employers struggle to navigate the many challenges posed by ObamaCare, it’s important for Republicans to take their vision for real health care reform to the American people. Throughout the health care debate, Democrats purposely ignored Republican ideas in an attempt to create an illusion that the Affordable Care Act was the only option to fix our country’s health care system. As a physician with more than 30 years of experience caring for patients, I came to Congress to help fix our country’s broken health care system. I’ve seen firsthand how high costs affect families, and I’ve heard directly from patients the challenges they face. That’s why this month, for the second Congress in a row, I joined my colleagues in the Republican Study Committee (RSC) to introduce the American Health Care Reform Act, our health care alternative to ObamaCare. This bill is a good starting point to truly addressing the problems in the American health care system in a commonsense, patient-centered way that returns decision-making power to patients and their doctors. This bill builds off the first version of the American Health Care Reform Act, which earned the support of a majority of House Republicans. After fully repealing ObamaCare, our bill will change the tax code to level the playing field between those who receive insurance through their employer and those that purchase it on their own. Based on Kaiser Family Foundation data, 80 percent of Americans will receive a tax cut under this plan. Next, the bill will provide protection to individuals with preexisting conditions by ensuring they can move between insurance markets provided they maintain continuous coverage. The legislation will allow Americans to shop for better care by letting them purchase insurance across state lines and by allowing small businesses to pool together and negotiate better rates. The bill will reform medical liability laws in a way that respects states’ rights and protects the 46 The Business Journal of Tri-Cities TN/VA | June 2015 | BJournal.com
sanctity of human life by prohibiting any health plan from requiring coverage of abortion services. Most importantly, this bill makes meaningful reforms to the health care system without requiring Americans to purchase insurance. We also have incorporated two areas of particular focus this year: improving choices for veterans and encouraging medical innovation. Last year, in response to the scandal at the Department of Veterans Affairs where secret waiting lists were exposed, we created the Veterans Choice Program, which gives any veteran who lives more than 40 miles from a VA clinic or has been waiting more than 30 days for needed care the ability to receive care elsewhere. In our bill, we expand veterans’ choice by giving any Category 1 veteran or any Medal of Honor winner the ability to receive care at a facility of their choice, irrespective of how close they live to a VA facility. Our nation’s heroes don’t deserve to be trapped in a system with unresponsive bureaucrats, and we hope that through choice and competition, the VA will adapt and provide veterans better care. Our bill also incentivizes health care innovation by creating a new X-Prize-like reward for developing cures for the top 5 causes of death in the United States – heart disease, cancer, stroke, Alzheimer’s, and diabetes. Our health care system is the best in the world because we have been successful in eradicating so many diseases. We want to keep it the best in the world by focusing on managing – and curing – the diseases that affect so many today. This forward-thinking approach to health care incentivizes innovation. We need to move beyond ObamaCare and the health care of the past so we can focus on the future of health care. We have the best and most innovative health care system in the world. Our outcomes are among the best and we’re constantly looking for new and better ways to treat patients. Our bill doesn’t just pave the way to improve health care, it makes concrete strides to modernize it too. I thank my colleagues at the Republican Study Committee, especially Chairman Bill Flores, for their leadership and work on this legislation. Health care is too important to get wrong again, and I hope the American Health Care Reform Act helps present a new vision for health care reform.
Local Lending Leaders. During the last thirty years, Tele-Optics has worked with a number of financial institutions, but we are proud to rate Citizens Bank as the best bank in East Tennessee. In addition to professional and courteous staff, their services are superior. Their lenders worked with us to find solutions to accommodate our borrowing needs. Thank you Citizens Bank for helping Tele-Optics continue to succeed.� Frank Waldo Director of Operations Tele-Optics Frank Waldo (right) with Citizens Bank Business Banker Brad Hoover
952-2265 www.citizensbank24.com
Bank your own way.
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The right team at the right time. When it comes to your heart, quality – and minutes – matter. When it comes to your heart, quality – and minutes – matter. The Wellmont CVA Heart Institute’s team of experts, including The Wellmont CVA Heart Institute’s team of experts, including cardiologists, cardiac surgeons, emergency medical services and cardiologists, cardiac surgeons, emergency medical services and other caregivers, work together to provide: other caregivers, work together to provide: • Award-winning response times • Award-winning response times • 24/7 cardiac surgery support • 24/7 cardiac surgery support • Acclaimed physicians, caregivers and hospitals • Acclaimed physicians, caregivers and hospitals
World-class World-class cardiology cardiology – – close close to to home. home. This is where your heart belongs. This is where your heart belongs.
To To learn learn more, more, visit visit wellmont.org/MyHeart wellmont.org/MyHeart or or call call 1-800-591-0531. 1-800-591-0531. In the 2015 rankings from CareChex®, an independent ratings organization and division of Comparion®, Holston Valley was named in the top 100 hospitals in the nation for medical excellence in cardiac care and heart attack treatment. Holston Valley was also ranked in the top2015 100 hospitals in theCareChex nation for®, patient safety in ratings major cardiac surgery,and heart attackoftreatment and®, Holston interventional care. Bristol Regional was named innation the topfor 10% nationwide for medical excellence cardiac caretreatment. and heartHolston attack treatment and forranked patientin In the rankings from an independent organization division Comparion Valleycarotid was named in the top 100 hospitals in the medical excellence in cardiac care andinheart attack Valley was also safety coronary bypass surgery attack treatment. the topin100 hospitals in the nationand forheart patient safety in major cardiac surgery, heart attack treatment and interventional carotid care. Bristol Regional was named in the top 10% nationwide for medical excellence in cardiac care and heart attack treatment and for patient safety in coronary bypass surgery and heart attack treatment.
Message your doctor.
48 The Business Journal of Tri-Cities TN/VA | June 2015 | Message BJournal.com your doctor.
MyWellmont.org MyWellmont.org