Enterprise 1Q 2015

Page 1

Political Observations of Reporters Covering the Walk to Washington  PAGE 12

NEW JERSEY CHAMBER OF COMMERCE

www.njchamber.com

a quarterly focus on the people and the issues that drive New Jersey business 1Q 2015

2015 WALK TO WASHINGTON Networking and ‘Close-Contact Politics’ Heated Up on the N.J. Chamber Train from Newark to D.C.  Page 10

ALSO INSIDE:

A Business Person’s Guide to Networking When is it Time to Fire an Employee?


Political Observations of Reporters Covering the Walk to Washington  PAGE 12

NEW JERSEY CHAMBER OF COMMERCE

www.njchamber.com

a quarterly focus on the people and the issues that drive New Jersey business 1Q 2015

2015 WALK TO WASHINGTON Networking and ‘Close-Contact Politics’ Heated Up on the N.J. Chamber Train from Newark to D.C.  Page 10

ALSO INSIDE:

A Business Person’s Guide to Networking When is it Time to Fire an Employee?


table of contents cover 10 Our Train Trip to D.C. Drew 900 for a Rolling Networking Party that Culminated in the Congressional Dinner

Photos by Russ DeSantis

12 Political Observations of Reporters on The Ride

Cover photo: Jim Fakult, president of Jersey Central, Power & Light, flanked by Ana Oliveira, senior vice president, Investors Bank, and John Nietzel, first vice president, Investors Bank, on the Walk to Washington.

focus on networking 06 A Business Person’s Guide to Networking

features 04 Message from the President: In Trenton, it’s Time to Lead, Follow or Get Out of the Way

focus on law

08 A Guide to Terminating a Problem Employee

18 Here’s Why Haier, the Global

focus on technology 09 How to Keep Your Company’s

Computer Network Running

Appliances Maker, Relocated to New Jersey from New York City

22 News Makers

06

focus on construction 14 Coming to a Town Near You: Steel Utility Poles,

Remote-Controlled Circuits and Self-Shutting Gas Lines

focus on news

12

16 State Treasurer: ‘No More Temporary Taxes and

Surcharges that Never Go Away’

17 Why Be a Mentor? To Change Lives and

Develop New Jersey’s Workforce

19 Eight N.J. Chamber Leaders are Named to

NJBIZ Power 100 List

focus on events 20 New BPU Chief: ‘We’re Examining the

Future of Energy’

21 Winter Networking, New Jersey Chamber Style

21 CORRECTION In an article on the Affordable Care Act in the December edition of Enterprise, AmeriHealth NJ was noted to have a 60 percent increase in its client base after the rollout of Obamacare in 2014. It actually saw a 1000 percent increase, from 10,000 to 108,000 individual members by the year’s end. We regret the error.


President’s Message

Lead, Follow, or Get Out of the Way BY THOMAS A. BRACKEN

I am tired of endless government “hearings” highlighting the state’s problems. We know New Jersey has problems. Merely talking about the issues only raises the anxiety and frustration levels in everybody. It raises the volume on the blame game, and continues to divide the citizens and constituencies of New Jersey. This rhetoric is dragging down our great state at a time when we are desperately striving to gain momentum and complete our economic recovery. For New Jersey to move forward, we need our leaders to engage in productive discussions. Let’s take the same energy being expended in Trenton’s “complaint sessions,” and apply it to constructive, open-minded debates that result in compromises and solutions, and do this with all the major issues facing our state. In the recent past, our government leaders have had solution-oriented discussions. These talks produced well-received compromises and results, and our state began building positive momentum in our economy, our pride and our image. Now, more than ever, we need to get that momentum back. Divided government and continually blaming others for our well-articulated problems will not result in positive outcomes. Government uniting in an effort to find solutions to our problems has worked before, will work again and is a paradigm shift that must take place now. The State Chamber will play its part in helping to shift that paradigm, and we will solicit other organizations to help us in that effort. We need to find a path back to economic prosperity. A stronger, growing and stable economy is the only certain path, and we can only get there by aggressively pursuing solutions to our problems. ❖

Thomas A. Bracken President and CEO New Jersey Chamber of Commerce

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CHAMBER STAFF

Thomas A. Bracken President and CEO

Dana Egreczky Senior Vice President, Workforce Development

Michael Egenton Senior Vice President, Government Relations

Lawrence Krompier Vice President, Member Services

Ray Zardetto Vice President, Communications

Scott Goldstein Communications Manager and Enterprise Editor

Ric Principato Creative Director/ Web Tech Manager

New Jersey Chamber of Commerce Staff

216 West State Street Trenton, N.J. 08608 Phone: (609) 989-7888 www.njchamber.com

NJCC Board of Directors Officers Chairman

Ralph Izzo Chairman and CEO Public Service Enterprise Group Inc.

N.J. Chamber Events

May 18, 2015 The Chamber Challenge Cup Golf Outing Join us for top flight prizes, great networking opportunities and a chance to play on one of the state's most elegant golf courses.

BEDENS BROOK CLUB, SKILLMAN

First Vice Chair

Amy B. Mansue President & CEO Children’s Specialized Hospital Second Vice Chair

Robert Doherty New Jersey State President Bank of America Treasurer

Howard Cohen, CPA Chairman EisnerAmper LLP Secretary

Robert Podvey Director Podvey Meanor Immediate Past Chair

Jeffrey C. Scheininger President Flexline/U.S. Brass & Copper Corporation PUBLISHED BY

280 Summer Street, Boston, MA 02210 Phone: 617-428-5100 Fax: 617-428-5118 www.thewarrengroup.com Š2015 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805.

June 11, 2015 18th Annual New Jersey Chamber of Commerce Open House and Reception The summer's best networking event.

4 P.M. TO 8 P.M., NEW JERSEY STATE MUSEUM, TRENTON For more information, go to www.njchamber.com For sponsorship opportunities, email Larry Krompier, N.J. Chamber vice president of member services, at larry@njchamber.com, or call him at (609) 989-7888. ENTERPRISE 1Q 2015 | 5


focus on networking

A Business Person’s Guide to Networking TIPS FROM THE EXPERTS THAT YOU CAN USE AT YOUR NEXT CONFERENCE

BY DIANA LASSETER

You want to succeed at networking? Do your homework and have a game plan. Don’t shoot from the hip, don’t corner someone and, most importantly, don’t roll right into a hard sell, the experts advise. Networking is a beginning, not a closing.

Aldonna Ambler

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Mary Clare Garber

Gregg Williams

“It is important to know before you go,” said Mary Clare Garber, vice president of Princeton Legal Search Group, the executive search firm in Princeton. “What is the organization you are visiting? Who will be there? What is the program?” She offered a personal example: When Garber was scheduled to attend an Association for Corporate Growth event at which Campbell Soup CEO Denise Morrison was the featured speaker, she did some Internet research on Morrison. Through her preparation, Garber discovered that the Campbell Soup CEO is a baton twirler. “What a great conversation starter,” said Garber, who tends to approach speakers at the start of an event, rather than later when the line forms. “Nobody was talking with her about that. She laughed, and it was a different way to start our relationship. It was valuable and fruitful that I took the time to [find out more about her].”


Certain networking techniques and strategies can help make a room full of peers and prospects seem less daunting – and yield better results. Context is critical, said Aldonna Ambler, a Hammonton-based growth strategy consultant. “People go to an association meeting and they want to sit next to a prospect and sell them. Nothing is worse,” she said.“Networking is a long-term, relationship-building exercise, not a hit-and-run, one-and-done opportunity to sell. Save that for lead groups, when you’re supposed to stand up and say you’re looking for a prospect. When you’re at a business card exchange, conference or educational event, think about how you are going to be perceived. If you come across like a selfish, shortterm, desperate salesperson, you lose.” Asking questions and observing are essential networking skills, Ambler added. Gregg Williams, a Roselle-based networking expert who calls himself The Master Negotiator, agreed. “I teach reading body language skills along with negotiation skills. I tell people to observe before you enter an environment and a conversation. What is somebody’s body telling you? Welcoming gestures? Anxiety? By observing them, you know how to approach them. You can be in a position to wow the individual by knowing how they will receive you.” Once you make that introduction, don’t initially go too deep, Garber advised. “The purpose of a networking event is to meet somebody and make a personal and professional connection. You don’t want to dive too much into one particular issue. Most people think they have to build the relationship at the event or it’s going to be over. The real relationship begins after the event. Where do you take the relationship from there? The follow-up is crucial.” If you are truly networking, then you shouldn’t feel obligated to stay with one person for the entire event, Garber added. In the end, networking is not only about satisfying your own needs. “In my opinion, you don’t deserve to get anything if you don’t give anything first,” Ambler said. Over her 20-year career, Ambler says she has referred or directly purchased more than $100 million of products and services from people she has met through association networking. “Come from a spirit of service, of help,” she said. “One of the reasons my companies have grown is that we see ourselves as databases of value. Show you listen and show you care.” ❖

Network with a Purpose Aldonna Ambler, a growth strategy consultant with offices in Hammonton, offers networking advice: XX Meaningful conversations with two people at the table can be worth much more than 20 meaningless interactions while walking around. XX Approach people as an ally. It does not pay to appear like a salesperson focused on his or her commission and looking for money to pay next month’s rent. XX Resist the urge to network with only people in your industry. Networking in associations that are important to your customers and prospects can teach you about their problems, preferences and needs. What you learn can be used to improve your products and services and your relevance.

ENTERPRISE 1Q 2015 | 7


focus on law

A Guide to Terminating a Problem Employee BY DIANA LASSETER DRAKE

Unless you’re Donald Trump, it’s the conversation that most employers dread having: telling an employee that he or she is fired. Or perhaps that employer is looking forward to the day when he can let a problem employee go. Whatever the case – particularly when an employee transgression is related to ongoing job performance – employers should take certain important steps before firing someone. Do it the wrong way, and you could find yourself embroiled in a nasty wrongful termination lawsuit, New Jersey’s top employment lawyers say. Employers should first understand that New Jersey is an at-will employment state. “That means you can terminate an employee for a good reason, bad reason or no reason at all,” said David A. Rapuano, a partner in the labor and employment department of Archer & Greiner in Haddonfield. “On the other hand, you cannot terminate them for an illegal reason. So, if you terminate an employee and he or she says, ‘Look, the real reason [you] did this was because of my race or my gender or my sexual orientation,’ then the employer is going to want to be able to prove that the real reason had to do with employee conduct. A potential jury is the other audience for an employer’s actions. You need to be able to convince the other audience that what you’re doing is fair.” Consistency is the primary safeguard. How you respond to employee misconduct or poor performance is based in part on the culture of the company and in part on the severity of the issue. “You’re not necessarily going to (discipline) somebody who is chronically late for work the same way you would (discipline) someone who is verbally abusive to a co-worker. There is a question of degree,” said W. Raymond Felton, comanaging partner with Greenbaum, Rowe, Smith & Davis in Woodbridge. “Part of the key to that is to try to do an applesto-apples comparison so that similar situations are treated similarly or in an identical manner.” In a wrongful termination case, courts will explore what is known as the employer’s “consistent application of known rules,” Rapuano said. “The rules can be described to the employee in handbooks or during evaluations. They may not be exact rules, but rather what the employer expects of an employee,” he said. “The rules themselves should reflect some sort of flexibility and should be guidelines. If the employee has any questions on the guidelines, he or she should be directed to discuss them with a supervisor.” Employers who suspect that they might end up firing an employee for performance-based issues should be deliberate about creating a path from transgression to termination – namely documenting past behaviors and warnings. “By the time clients come to us, they want to let some8 |

one go right away, but they haven’t done anything to prepare for it,” said Christopher S. Mayer, employment partner with McCarter & English in Newark. “Document the performance problems well in advance and talk to the employee so that this doesn’t come out of left field. You don’t want to spring this on employees, because that is when they tend to sue.” More specifically, Felton added, “Record the warning in their personnel file so you have a record on [a particular] date that there was a problem. Make sure they know that continuing to commit the transgression will result in termination of employment.” Additionally, noted Rapuano, warn them as soon after the misconduct as possible. When the day of the firing arrives, don’t let your emotions get the best of you. While that employee who is late to yet another meeting or missing still another important deadline may push you over the edge, you need to proceed professionally.“Employers make missteps in this type of situation when they react emotionally and in the heat of the moment,” Felton said. “That’s when there is more of a tendency to say and do the wrong thing. If you bite your tongue or count to 10 or sleep on it and wait for the next day, you can approach it with more ration and reason.” ❖ Be Honest, Be Direct, Be Brief and Have a Witness What is the right way to terminate an employee? Employment lawyers in New Jersey offer this advice: XXBe honest. “You never want to hide the real reason for

termination from an employee,” said David A. Rapuano, a partner in the labor and employment department of Archer & Greiner in Haddonfield. “A lot of employers say an employee has been terrible for X number of years, but [to reduce tension] they tell the employee that they are eliminating their position entirely. Later, if the employee claims you terminated them because of race or gender, they are able to demonstrate that you did not eliminate their position, and now you’re a liar. The jury is going to believe them, not you.”

XXBe direct. “Don’t get hung up in any sort of side discussions with the employee,” said Christopher S. Mayer, employment partner with McCarter & English in Newark. “The termination meeting needs to be very targeted and focused. Be as positive as you can and don’t condescend to the employee. Stay on the main points. And if you can, end it on a very positive note.”

XXBe brief. “We advise employers not to get into details,” said W. Raymond Felton, a co-managing partner with Greenbaum, Rowe, Smith & Davis in Woodbridge. “Rehashing what has happened in detail gives the employee a chance to say, ‘I didn’t say that, I didn’t mean that, I didn’t really do that, you misunderstood me and shouldn’t fire me.’”

XXHave a witness. “It’s important to have two people

present so that the employee can’t twist around what was said,” Mayer said. “In addition, as soon as the termination meeting is over, go back and type up a memo to include in the employee’s file about everything that was discussed.”


focus on technology

How to Keep Your Company’s Computer Network Running Smoothly and Securely BY IAN MARLOW

Many business owners and executives don’t give their computer network much thought until a problem arises. They should. Proactive network audits avert nasty problems and keep your system running. A full audit, performed by a technology consulting firm, can uncover system deficiencies. It can identify hardware and software your company may be missing. It can pinpoint security breaches. And it can outline cost estimates for solutions. Here are 10 reasons to do a network audit, and the areas an auditor will examine: Efficient access for your remote workforce. Does your system make it easy, fast and secure for your remote workforce to operate anywhere? Virtual desktops and offline file folder synching allow off-site employees to operate as they would in your office – and prevents huge data bills that come from transmitting files over a cellular network. Both public and private clouds give your employees remote accessibility at much greater cost efficiency. Business continuity. It is crucial to have your network operate through a power outage or have workarounds in place in the event your network is down. This is another area of operations that benefits from cloud computing. Working in the cloud allows companies to avoid or reduce significant downtime. Network portability. Make sure your computer network extends beyond your server to mobile devices and Chromebooks for maximal portability. Chromebooks are relatively inexpensive laptops that provide access to your company’s public or private cloud with just a Wi-Fi connection. They require very little maintenance, and employees can maintain contact with each other and your customers via live webchat and other features. Our firm recommends that clients maintain an inventory of Chromebooks (or another preferred wireless device with similar features) as a proactive measure against a major power outage or system failure. Intellectual property protection. A network evaluation can reveal if there is unauthorized activity regarding what information your employees are taking from you and how (via USB drives, email or third-party/cloud storage providers). Anti-virus protection. Companies are susceptible to having a virus spread from one work station to the entire network. An audit will show you whether or not you have the most updated protection. Are you spending too much? Are you spending too much or not enough on computer network maintenance? We rec-

ommend that companies spend 2 percent to 3 percent of their gross revenue on technology. A comprehensive audit should include evaluating the cost of your internal hardware, software and maintenance expenses compared to moving it to the cloud and subscription-based software. Unintentionally knocking your network offline. A WAN (wide area network) connects multiple locations of the same company. If not properly designed, one location going off line causes all locations to go offline. An audit can reveal upgrade opportunities to limit this problem. Are your firewalls secure? New firewall protocols create a secure point-to-point connection that encrypts data across a high-quality connection. This costs less, but is equally as secure as what the telecom providers offer. Do you have it? Network breaches. An intrusive penetration test is an attempt by your network auditor to find holes in your network that could lead to a security breach. This test enables your company to remediate the issue and avert undue risk. Maintaining sufficient processing power. An auditor can measure, over days or weeks, how much processing power and memory is used to service your user base. This information dictates how much cloud storage you need and how much you will need to pay for it. It also reveals whether or not you are running with sufficient processing power and memory. If your cloud provider does not allocate enough virtual and physical memory for your needs, your organization will suffer with slow computing, unhappy users and potential for security breaches. ❖ Ian Marlow is CEO of FITECH (www.fitechllc.com), a technology consulting and services firm with offices in Fairfield and New York City. Contact him at imarlow@fitech.com. ENTERPRISE 1Q 2015 | 9


THE ARCTIC EXPRESS A BIG SUCCESS

Photos by Russ DeSantis

Walk to Washington

Gov. Chris Christie with N.J. Chamber of Commerce President and CEO Tom Bracken at the New Jersey Chamber of Commerce’s Congressional Dinner.

N.J. Chamber Train Trip to D.C. and Congressional Dinner Attract 900, Despite Frigid Temps By Scott Goldstein

The 78th Annual Walk to Washington and Congressional Dinner on Feb. 19 and 20, 2015, brought to Washington a who’s who of New Jersey business and government leaders, all of whom participated in what NJBIZ newspaper has called “a massive mobile networking event” and The Star-Ledger called “a longstanding Jersey tradition.” The single-digit wind chill temperatures didn’t put a damper on the festivities, as 900 leaders boarded the Chamber’s chartered Amtrak train, where networking and “close-contact politics heated up,” reported the website PolitickerNJ. The event, as Politicker described it, gives the state’s leaders “across the ideological spectrum a Wayne Barnett, director of business development for Aramark, makes friends on the train.

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continued on page 13


N.J. Chamber of Commerce Chairman Ralph Izzo, who also serves as president, CEO and chairman of PSEG, talks to N.J. Chamber President Tom Bracken.

Assemblyman Anthony Bucco navigates the aisle of the train.

Assemblyman Benjie Wimberly on the train.

PNC Northern New Jersey Regional President Linda Bowden on the train.

At the N.J. Chamber of Commerce Congressional Dinner, Gov. Chris Christie talks to U.S. Rep. Frank Pallone (left) and N.J. Chamber of Commerce Chairman Ralph Izzo.

Bob Doherty, New Jersey president, Bank of America; Steve Kern, CEO, Newark Museum; and Mike O’Brien, commercial banking manager, Bank of America, Merrill Lynch.

Sen. Joseph Kyrillos and JCP&L President Jim Fakult.

Matt Kraner, president of NJ Advance Media with David Martel, vice president of marketing of NJ Advance Media.

JCP&L President Jim Fakult; Children’s Specialized Hospital President and CEO Amy Mansue; and PSEG President, CEO and Chairman Ralph Izzo.

Anne Grealy, executive director, state regulatory affairs, of FirstEnergy Corp., and Julie Holman, state government affairs director, JCP&L/FirstEnergy Corp.

Leecia Eve, vice president, New Jersey, New York and Connecticut regions, Verizon, at the Congressional Dinner.

ENTERPRISE 1Q 2015 | 11


Walk to Washington

Michael Aron, chief political correspondent at NJTV, moderated the panel of NJTV News Correspondent David Cruz; NJ Advance Media Washington Correspondent Jonathan D. Salant; The (Bergen) Record Washington Correspondent Herb Jackson; WNYC and New Jersey Public Radio reporter Matt Katz; Philadelphia Inquirer Washington Correspondent Jonathan Tamari; and NJBIZ State House Correspondent Andrew George.

Gas Tax, Pension Reform and Christie’s White House Run Discussed at Breakfast with Reporters

WNYC and New Jersey Public Radio reporter Matt Katz said, “Christie gets more scrutiny than any other candidate besides Hillary.”

It has become a tradition at the Walk to Washington. The morning after the Congressional Dinner at the Marriott Wardman in D.C., guests attend a breakfast featuring a panel of veteran New Jersey journalists who cover politics in the nation’s capital and Trenton. This year, the freewheeling discussion touched on the prospect of a state gas tax hike to raise funds for transportation projects; ongoing pension and benefit reform; and, of course, Gov. Chris Christie’s chances of landing in the White House. The event produced some of the sharpest quotes of the Walk to Washington. Here is a sampling: “Christie’s no-tax talk yesterday suggests he would not sign a gas tax hike.” — Matt Katz, WNYC and New Jersey Public Radio reporter

Reporters chat it up with Walk to Washington guests following the N.J. Chamber of Commerce’s reporters roundtable in D.C.

“Don’t count out a gas tax increase if it is coupled with reducing other taxes, like the state estate tax.” — Andrew George, State House correspondent, NJBIZ “Assembly Republicans don’t want to pass a gas tax. They want the Democrats to pass a gas tax.” — Herb Jackson, Washington correspondent, The (Bergen) Record “Would Christie veto a gas tax increase and give Republicans in Legislature green light to override it?” — Matt Katz, WNYC On talk that Sen. Cory Booker could run for governor: “It isn’t fun being a junior senator in the minority party.” — Jonathan D. Salant, Washington correspondent, NJ Advance Media

Andrew George, State House correspondent for NJBIZ, said “Don’t count out a gas tax increase if it is coupled with reducing other taxes, like the state estate tax.”

“Christie gets more scrutiny than any other candidate besides Hillary.” — Matt Katz, WNYC On Gov. Chris Christie’s chances of capturing the White House: “He needs to throw a Manning-to-Tyree-like pass.” — Herb Jackson, The Record “We have counted Christie out two or three times, and he has a way of surviving.” — David Cruz, correspondent, NJTV News All quotes were from the event on Feb. 20, 2015.

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The (Bergen) Record Washington correspondent Herb Jackson assessed Gov. Chris Christie’s chances of capturing the White House: “He needs to throw a Manning-toTyree-like pass.”


continued from page 10 once-a-year opportunity to network, all in the privacy of a steel tube hurtling down the tracks at 80 miles per hour.” The “Arctic Express” whisked through New Jersey, picking up guests along the way. The trip hit a crescendo when the train reached the nation’s capital and guests gathered at the Marriott Wardman Park for the Congressional Dinner and a keynote address by Gov. Chris Christie. Gov. Christie’s Keynote Christie, widely expected to pursue the Republican nomination for president, focused on state politics in his speech, pledging to “resist” tax increases and foster a business climate in the Garden State that encourages business expansion and job growth. “We need to continue, in my view, to shrink the public sector so that it gives room for our private sector to grow even more by making government less expensive,” Christie said.“The way to grow the economy is to make it profitable for business to grow the economy.” U.S. Reps. Frank Pallone, Donald Norcross and Tom MacArthur also shared their ideas at the dinner about improving New Jersey’s economy. The N.J. Chamber’s 13-Car Chartered Train On board the four-hour train ride on Feb. 19 were CEOs, small business owners, entrepreneurs, nonprofit leaders and legislators, who walked the aisles chatting and exchanging business cards. In fact, with more than 40 legislators on board, Assembly Republican Leader John Bramnick, navigating the aisle of one of the middle train cars, suggested that state Democrats and Republicans get along better on the train than they do in Trenton. He half-jokingly proclaimed, “Nobody leaves (the train) until we solve the problems of New Jersey.” During the dinner, the N.J. Chamber presented its 2015 Business Leadership Award to Bill Marino for his accomplishments and service to New Jersey. Marino served as chairman and CEO of Horizon Blue Cross Blue Shield of New Jersey, the state’s largest health insurer, from 1994 until his retirement in 2011, and he created The Horizon Foundation for New Jersey, a charitable foundation dedicated to improving the quality of life in New Jersey. The festivities capped off the following morning with an insightful reporters roundtable breakfast where New Jersey’s most experienced news reporters discussed, among other things, the impact of Christie’s potential presidential campaign and handicapped the 2017 gubernatorial race. A special thank-you to JCP&L, Walk to Washington’s premier sponsor. ❖ Scott Goldstein is communications manager at the New Jersey Chamber of Commerce.

Bill Marino

Bill Marino Wins 2015 N.J. Chamber Leadership Award This year at the Walk to Washington’s Congressional Dinner, the New Jersey Chamber of Commerce presented its 2015 Business Leadership Award to Bill Marino for his professional accomplishments and his service to New Jersey. Marino served as chairman and CEO of Horizon Blue Cross Blue Shield of New Jersey, the state’s largest health insurer from 1994 until his retirement in 2011, and he continues to serve as a director on a wide variety of corporate and nonprofit boards. Under Marino’s leadership, Horizon BCBSNJ grew from 1.7 million members with revenues of $2 billion to 3.6 million members with revenues of more than $8 billion. He grew Horizon BCBSNJ’s market share to 46.7 percent of New Jersey’s insured market. And he created The Horizon Foundation for New Jersey, a charitable foundation dedicated to improving the quality of life in New Jersey. Before joining Horizon BCBSNJ, Marino was vice president of regional group operations for New York and Connecticut at Prudential, capping a 23-year career with them. Marino is a past chairman of the New Jersey Chamber of Commerce, and continues to serve as co-chairman of the New Jersey Performing Arts Center and as a member of the New Jersey Symphony Orchestra board. He is a member of the Campaign Committee of St. Vincent Academy and a member of the board of trustees of Delbarton School in Morristown. Marino also serves on the boards of WebMD, Sealed Air Corporation, Sun Bancorp and LCA Holding, LLC. Marino is a recipient of the 1997 Ellis Island Medal of Honor. In 2007, he received The American Conference on Diversity’s Humanitarian of the Year Award. He graduated from St. Peter’s College in Jersey City with a bachelor’s degree in economics. Marino and his wife, Paula, have four children and eight grandchildren and reside in New Vernon, New Jersey. The 2014 recipient of the Business Leadership Award was Al Koeppe, who served as president and CEO of PSE&G, and CEO of Bell Atlantic-New Jersey. ENTERPRISE 1Q 2015 | 13


focus on construction

Coming to a Town Near You

STEEL UTILITY POLES, REMOTE-CONTROLLED CIRCUITS AND SELF-SHUTTING GAS LINES BY ALICIA WALTMAN

Mary Patricia Keefe

Ralph LaRossa

Vincent Maione

Spring is in the air, and that means construction in the Garden State. Energy utilities in particular are taking advantage of low interest rates to launch, in some cases, unique capital projects designed to improve the delivery of the power that keeps New Jersey’s businesses and homes running. 14 |

Jersey Central Power & Light is installing equipment that allows the company to reset circuits remotely, shortening the length of power outages. Public Service Electric and Gas Co. is installing systems that automatically shut off gas flow if a service line is damaged. Atlantic City Electric is replacing wooden power poles with steel poles that resist salt-air corrosion and can withstand winds of up to 120 miles per hour. Here’s a rundown on what New Jersey’s energy utilities are doing: Jersey Central Power & Light (JCP&L) has said it will spend $267 million in 2015 improving the infrastructure that serves its 1.1 million New Jersey customers. Projects include a new transmission line in Middlesex County, expansion of a Hunterdon County substation and upgrades to a substation in Morris County. And it is installing the remote-controlled equipment to rapidly reset circuits. “In 2014, we had 17 percent fewer outages than the previous year, which we can largely attribute to the infrastructure work that’s been done to strengthen our system,” said JCP&L President Jim Fakult. The improvements also produce jobs:


Fakult said a 230,000-volt line being installed in Monmouth County will create about 100 jobs. “We don’t anticipate having to increase rates to pay for these projects at this time,” he told Enterprise magazine. “New Jersey businesses need a steady and reliable source of power to be competitive, and these improvements allow owners to focus on their business and not worry about their power source.” Public Service Electric & Gas Co. (PSE&G), which serves 1.87 million customers, has proposed spending $1.6 billion per year to replace nearly 800 miles of aging cast iron and steel gas mains. They’ll be replaced with durable plastic pipes that are less likely to leak liquid gas or methane gas, which contributes to global warming. The new, elevated pressure systems being installed in some locations include valves that automatically shut off gas flow when a service line is damaged. “While our cast iron and unprotected steel gas pipes represent less than 30 percent of our infrastructure, they account for 80 percent of the distribution system leaks each year, excluding third-party damages,” stated PSE&G President and COO Ralph LaRossa. La Rossa said low gas prices and low interest rates make this a good time to move forward with the projects that could produce as many as 500 jobs. PSE&G bills will rise about $8.60 a month by the final year. Elizabethtown Gas is spending $115 million over four years to replace 120 miles of cast iron and bare steel pipes with plastic; and $15 million to replace 12 miles of pipe damaged by Hurricane Sandy. Altogether, 169 contractor jobs will be created, according to Mary Patricia Keefe, vice president of regulatory affairs and business support. “We are making it a safer and better system,” she said. Atlantic City Electric, a subsidiary of Pepco Holdings Inc., plans to spend more than $1 billion over the next five years, with the goal of reducing outages and protecting the system from storm damage, said Atlantic City Electric Region President Vincent Maione. Since 2014, Atlantic City Electric has finished construction of new substations in Atlantic and Cumberland counties, and rebuilt one in Atlantic County. With 547,000 customers, including coastal towns from Long Beach Island to Cape May Point, and up the Delaware to Paulsboro, the company is focused on storm-proofing. In a project in the barrier island town of Avalon, the company is building a substation, upgrading transmission lines and replacing wooden power poles with steel poles that resist salt-air corrosion and can withstand winds of up to 120 miles per hour. Meanwhile, the company has begun several transmission system upgrade projects running through 13 communities in five counties. “We’ve had 23 percent fewer outages in 2014, compared to 2013,” Maione said. “The severe storms we’ve had over the last five years have created havoc. Businesses can’t withstand long outages. We’re spending now to improve our system with newer, more resilient equipment.” ❖

NJ Chamber Supports PSE&G’s $1.6B Plan to Replace Aging Gas Mains The devastation wreaked on the Garden State by Hurricane Sandy and the significant damage to the state’s energy sector have made it clear that New Jersey needs a more reliable and resilient infrastructure to ensure it does not experience prolonged service interruptions. PSE&G’s Gas System Modernization Program proposes to accelerate the replacement of aging cast iron and steel gas mains. Tom Bracken, president and CEO of the N.J. Chamber, said, “The plan will modernize 800 miles of cast iron and unprotected steel gas mains over the next five years and create 500 jobs in New Jersey.” The PSE&G proposal, filed with the New Jersey Board of Public Utilities, calls for investing $320 million in each of the next five years to accelerate the replacement of 170 miles of gas mains – protecting more than 11,000 service lines to homes and businesses. “This forward-looking plan will lead to fewer emergency repairs and disruptions,” Bracken said. “This is one more step in making New Jersey stronger. When our utility industries are strong and reliable, the state becomes more competitive.” ENTERPRISE 1Q 2015 | 15


focus on news

N.J. Chamber of Commerce Breakfast Series STATE TREASURER: ‘NO MORE TEMPORARY TAXES AND SURCHARGES THAT NEVER GO AWAY’ State Treasurer Andrew P. Sidamon-Eristoff gave New Jersey Chamber of Commerce members a briefing on Gov. Chris Christie’s proposed $33.8 billion budget for the upcoming fiscal year – and he touted the Christie administration’s continuing efforts to reduce business taxes. The briefing came during a New Jersey Chamber of Commerce Breakfast Roundtable in Monroe on March 6. The governor’s plan for the fiscal budget, which goes into effect July 1, would complete the phase-in of two business tax reform initiatives that the New Jersey Chamber has long championed: a single sales factor formula for determining Corporate Business Tax liability and a net operating loss carry forward for small businesses. The proposed budget contains no business tax increases. “We don’t want to return to the ways of temporary taxes and surcharges that never go away,” Sidamon-Eristoff said. “We have seen that movie.” The budget also would solve a problem with one of the state’s business incentives by converting the Business Employment Incentive Program (BEIP) grant program into a tax credit program, so the funding mechanism would no longer be subject to the unpredictable appropriations process. “This ensures the payment of incentives granted years ago to companies that create jobs,” Sidamon-Eristoff said. “And it preserves the credibility of the state’s incentive programs.” The treasurer praised the New Jersey Chamber of Commerce’s role in pushing the Economic Opportunity Act of 2013, a package of aggressive reforms that arm the state with powerful business attraction and retention incentives. “Whether or not you believe in incentives, the fact is we are in daily competition (for jobs) with our neighbors, the region and jurisdictions all over the planet,” Sidamon-Eristoff said, “so a lot of money, time and attention is being invested in attracting jobs and I think that is appropriate.” The Christie administration and Legislative leaders are working on a plan to “reauthorize the state Transportation Trust Fund’s capital program,” for annual maintenance and improvements to New Jersey’s highways, bridges and mass transportation, the treasurer said. The fund is set to run out of money on about June 30, when the cost of debt service is expected to exceed the fund’s revenues. Chamber lobbyists will continue to monitor the budget process and advocate for a budget that supports New Jersey’s employers and strengthens the business climate. The state constitution mandates that the Legislature must pass and the governor must sign a budget bill by July 1. A special thank-you to AT&T for sponsoring the event. 16 |

Treasurer Andrew P. Sidamon-Eristoff.

Ken Orchard, president of TriState Capital Bank’s New Jersey region, and Gary Horan, president and CEO of Trinitas Regional Medical Center.

Sidamon-Eristoff flanked by Chamber President and CEO Tom Bracken (left) and Deborah Bierbaum, executive director of external tax policy at AT&T.

New Jersey Chamber of Commerce members received a briefing on Gov. Chris Christie’s proposed $33.8 billion budget.


focus on news

New Jersey Chamber of Commerce Foundation CHANGE LIVES, GROW TOP TALENT: BE A MENTOR TO A STUDENT

The Tomorrow Zone — Influence Early and Often

A Dose of Reality Can Make a World of Difference!

Use the power of the business community and interaction with business people as managers and mentors in unique and powerfully real programs to make sure middle and high school students or young adults are ready for college, work and life.

ments. The students compete on teams to design and fabricate a model of a new toy or piece of sports equipment that they present to a panel of judges. • Discuss your career and its demands with college-bound students who are in the process of making decisions about their careers and college choices. • Share your knowledge about proper greeting protocols, work ethic, attendance and punctuality. You will evaluate students as they participate in an exercise in which they apply for a job, submit a résumé and participate in interviews.

Preparing today’s students for the rigors of college and the workforce is a priority for the New Jersey Chamber of Commerce Foundation. Help us build your workforce. Register on our website’s newest feature: Volunteer Central www.njchamber.com/volunteer or call Patty Cullinane at (609) 789-5279 for more information. ❖

ENTERPRISE 1Q 2015 | 17

MIDDLE SCHOOL Form a Tomorrow Zone Club in your school or embed The Tomorrow Zone in your current after-school programs. Eight 90-minute meetings for up to 50 eighth graders with trained business people begin the delivery of real world messaging, which sets expectations for academic achievement, behaviors, employability, and builds the base for college, work and life. (Also deliverable as a two-day, school/summer-day Capstone Project.)

building New Jersey’s workforce

Target your best-and-brightest, unmotivated but collegecapable, at-risk or special needs, CTE or vocational students — there is a Real World Experience for every group. Choose a twohour workshop, a five-day experience, or a recurring after-school club. Customize topics and experiences. Design the event; pick the topics YOUR students need to learn.

Whether bound for college or work, Real World Experiences will demand more from students now, so life will be easier for them later. Real World Experiences help your students focus on academic One employer achievement, know/practice necessary reports that 900 people apply for behaviors, remain employable, and every low-skill job. become financially literate.

rigors of college.

Provide your students opportunities to learn what the world will expect from them through meaningful engagement with business people as mentors and managers — encounters that will make students want to work harder. The influence of the business community as future employers, combined with the fun and excitement of competitive team games and the in-depth understanding offered by experiential and projectbased learning opportunities that mirror the world of work, help students upgrade personal goals Only 26 percent of so they can be ready for the ultraprofessors say high competitive worlds of college school students are admissions and employment. prepared for the

Engaging presentations and short activities set the stage for the main experience: Be The Cause. Teams of middle school students compete as advertising agencies to design an advocacy campaign that targets fellow classmates and aims to make them do something positive (eat healthier, don't smoke, learn more math). Teams ‘report’ to a project manager (a business person who plays the role of an executive in the advertising agency). Participants conceive, design, plan, execute, and measure the impact of their campaign, and interact with their supervisor (business person) throughout the project in person and remotely. Each team receives a small budget to spend on necessary campaign materials. When finished, students present their experiences to a panel of business judges. Members of the winning team receive a merchant gift card.

FREE MOTIVATIONAL MESSAGING give your students a dose of reality

LearnDoEarn.org

Motivate | Cultivate | Challenge | Influence

Make a difference in the lives of students in your local middle schools and high schools by sharing your knowledge and expertise as a volunteer with the New Jersey Chamber of Commerce Foundation. With just three hours of your time – or more if you can spare it – you can mentor students as they participate in the Foundation’s series of Real World Experiences. For nearly two decades, the Chamber Foundation has prepared students for college and careers through unique, competitive business simulation projects in which they pursue jobs, develop products and secure contracts. As a volunteer, a Foundation staff member will prepare you and accompany you as you work with students. You might be asked to: • Manage eighth-graders as they play the role of executives in an advertising/marketing agency and compete in teams to secure a fictitious “project contract” with a nonprofit organization. • Mentor special needs high school students as they learn how to navigate the working world – what to wear, how to address colleagues and how to make situational judg-


member profile

Haier, Growing Global Appliances Maker, Relocates to New Jersey “WE WANT TO COLLABORATE WITH ALL OF YOU, THE INDIVIDUALS DRIVING NEW

Photo by Russ DeSantis

JERSEY'S GROWTH. WE, TOO,

Haier America CEO Adrian Micu at the New Jersey Chamber of Commerce Gala on Oct. 27 commemorating state’s 350th anniversary.

Haier America, a subsidiary of the multinational Haier Group and global leader in home appliances and consumer electronics, left New York City in September, and opened its new North American headquarters in Wayne, N.J. The newly retrofitted 56,000-square-foot facility was one of the reasons for moving out of its Manhattan headquarters, but company executives said the business climate in New Jersey and the role it can play in the company’s U.S. expansion clinched the deal. Haier employs more than 70,000 people worldwide and distributes products in more than 100 countries and regions with global revenues reaching $29.5 billion in 2013. “I believe that, under the leadership of this state’s administration and its senior members of the Legislature, New Jersey is growing into one of the most business friendly climates in the United States, and our company is excited to play a part in the state’s economic growth,” said Haier America CEO Adrian Micu at the headquarters’ Sept. 29 grand opening, attended by Lt. Gov. Kim Guadagno, State Sen. Kevin O’Toole and other elected officials and business leaders. “Haier America is on course to become a brand-name presence in the U.S. marketplace and our move signifies not only our growth to 18 |

date, but a commitment to the future. As Haier America grows so will its workforce in New Jersey.” Haier signed a 13-year lease for the Wayne facility. Currently, Haier maintains more than 350 employees directly within the United States – about 200 of whom are now located in the new Wayne headquarters. These employees work in legal services; marketing; human resources; information technology; consumer services; research and development; finance; sales; business units; and operations. As part of the company’s long-term commitment to New Jersey and the Wayne community, Haier is seeking educational relationships with William Paterson University, local business and civic organizations; as well as pursuing philanthropic activities statewide. As its presence grows in the Garden State, Haier America has embarked on a path to develop a footprint across America. The new headquarters gives the company the ability to support a growing customer base and a more holistic consumer-centric approach. With its proximity to New York and additional space, the new Wayne facility also offers logistical and financial advantages that made sense for the company. Haier is a provider of consumer centric home solutions, and is becom-

WANT TO SHARE THE RICH HISTORY OF INNOVATION THIS STATE BOASTS.” — ADRIAN MICU, CEO, HAIER AMERICA ing the world’s largest major home appliances maker, with a nearly 10 percent share of the global market. “Haier’s new vision repositions its U.S. market strategy so that consumers will come to view our product line as more than a series of individual, quality appliances,” said Micu. “Through increased awareness and confidence among American consumers in the Haier brand, they will come to recognize Haier as the consumer choice for complete home solutions.” Micu, whose company was the primary sponsor of the Oct. 27 New Jersey Chamber of Commerce Gala commemorating state’s 350th anniversary, said Haier America wants to share in the rich history of innovation the state boasts. “Our tremendous growth globally, in large part, came because we have staked our own reputation as innovators, both in the products we create, and the way we manage our business,” Micu said at the Gala. “We want to collaborate with all of you, the individuals driving New Jersey’s growth. We, too, want to share the rich history of innovation this state boasts. “Thirty years ago, we were a struggling fridge maker,” he added. “Now we’re the world’s largest appliance maker.” ❖


focus on news

Eight N.J. Chamber Leaders on NJBIZ Power List NJBIZ newspaper released its Power 100 list in January – a list of what the newspaper considers the most powerful people in the New Jersey business community. Appearing on the list are New Jersey Chamber of Commerce President Tom Bracken, N.J. Chamber Chairman Ralph Izzo, Chamber First Vice Chairwoman Amy Mansue, Chamber Second Vice Chairman Bob Doherty and four other members of the N.J. Chamber’s board of directors. “The ability of the New Jersey Chamber of Commerce to advocate for the business community is greatly enhanced by the quality of our board of directors,” Bracken said. “This recognition by NJBIZ demonstrates the strength of our board, for which we are extremely proud.” ❖

POWER PLAYERS In addition to N.J. Chamber President TOM BRACKEN, here are the board members on the list: XX RALPH IZZO, chairman, president and CEO of PSEG, one of the most critical companies in New Jersey. XX BOB DOHERTY, the New Jersey state president for Bank of America, the state’s largest commercial bank. XX AMY MANSUE, president and CEO of Children’s Specialized Hospital, the largest pediatric rehabilitation hospital in the nation. XX LINDA BOWDEN, regional president, Northern New Jersey at PNC Bank, which boasts more branches (335) in New Jersey than any other bank. XX ANNETTE CATINO, CEO of QualCare, a rapidly growing provider of health care coverage. XX BARRY OSTROWSKY, president and CEO of Barnabas Health, the largest health system in the state. XX TED ZANGARI, who, as chair of the Redevelopment Law and Public Policy Practice Group at Sills, Cummis & Gross, works on many of the state’s political and developmental issues and projects.

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ENTERPRISE 1Q 2015 | 19


focus on events

N.J. Chamber of Commerce Breakfast Series NEW BPU CHIEF TO N.J. CHAMBER MEMBERS: WE’RE EXAMINING THE FUTURE OF ENERGY

Richard Mroz, a lawyer and former New Jersey Chamber of Commerce board of directors member, was named BPU president by Gov. Chris Christie in October.

Richard Mroz has taken over as president of the New Jersey Board of Public Utilities at a critical juncture – as the state, the nation and the world explore a new course for clean, reliable and affordable energy. “We are at a point – the industry, regulators [and] grid operators – where we are determining what kind of facilities will be developed and what kind of support government will provide,” Mroz said during a New Jersey Chamber of Commerce Breakfast Roundtable in Monroe on Dec. 9. “We have to do the right planning to find the right mix of resources.”

New Jersey Chamber of Commerce Members Auto Insurance Discount

Among the fuel sources in New Jersey are coal, petroleum, renewables, natural gas and nuclear. Mroz, a lawyer and former New Jersey Chamber of Commerce board of directors member, was named BPU president by Gov. Chris Christie in October. It is unclear what the future holds for energy, but for now Mroz said one of his priorities is to fill vacancies at the BPU as his agency’s workload is increasing. “We need good, young people familiar with emerging technologies,” he said. A special thank-you to New Jersey Resources for sponsoring the event. ❖

The New Jersey Chamber of Commerce has partnered with Plymouth Rock Assurance because of our shared commitment to service and value for our customers. As a member or employee, you are entitled to

5% discount > aonspecial auto insurance through Plymouth Rock. Visit us online at NJChamberQuote.com or call 888-391-7220 today for your free quote. Plymouth Rock Assurance is a marketing name used by a group of separate companies that write and manage property and casualty insurance in multiple states. Insurance in New Jersey is offered by Plymouth Rock Management Company of New Jersey on behalf of Palisades Insurance Company, 331 Newman Springs Rd, Suite 304, Red Bank, New Jersey 07701, and its affiliates. Each company is financially responsible only for its own insurance products. Certain restrictions and limitations apply. For a full description of the programs, features, and coverages, please visit PlymouthRockNJ.com. Group discounts apply to policies written in High Point Property and Casualty Insurance Company or Palisades Insurance Company. May not be combined with any other group discounts. ©2015 Plymouth Rock Management Company of New Jersey. All rights reserved. 7996/022015

20 |


focus on events

New Jersey Chamber of Commerce’s Winter Member Networking Breakfast

Photos by Russ DeSantis

New Jersey Chamber of Commerce members exchanged business cards and discussed the latest Chamber programs, events and ways to grow their business at a networking event at NJ Advance Media’s new headquarters in Iselin. Members were joined by the Chamber’s executive team, including Chamber President and CEO Tom Bracken; Senior Vice President of Government Relations Michael Egenton; Vice President of Member Services Larry Krompier; Vice President of Communications Ray Zardetto; and NJ Chamber Foundation Interim Executive Director Donna Custard. A special thank-you to Wilentz, Goldman & Spitzer for sponsoring and NJ Advance Media for hosting. ❖

ENTERPRISE 1Q 2015 | 21


news makers

Larisa Perry

Aldonna R. Ambler

WELLS FARGO named Larisa Perry its Northeast region president for New Jersey, New York and Connecticut. Perry oversees more than 4,700 team members and 450 retail banks. Perry, a 25-year industry veteran who previously served as Wells Fargo’s regional president for Central Florida, is based in Summit. New Jersey Chamber of Commerce Board member Aldonna R. Ambler, president of AMBLER GROWTH STRATEGY CONSULTANTS, was inducted into the N.J. Business Hall of Fame. Also inducted was Michelle Lee, eastern region banking executive at Wells Fargo. The hall honors distinguished business leaders and role models for outstanding accomplishments in their industries and dedication to New Jersey communities.

Maureen Hemhauser

TD BANK named Jared R. Winnick its vice president and U.S. head of regulatory and internal investigations; the bank also named Patrick D. McLean senior vice president and head of brand and product marketing. Both are based in Mount Laurel.

Jeralyn L. Lawrence

Brian A. Gragnolati was named CEO of ATLANTIC HEALTH SYSTEM. He previously served as senior vice president, community division, at Johns Hopkins Medicine in Baltimore. Gragnolati succeeds CEO Joseph Trunfio, who announced his retirement last October. Accounting, tax and advisory firm COHNREZNICK named Michelle Fleishman a principal and general counsel. Fleishman has served as associate counsel at the firm for seven years. Maureen E. Hemhauser was named PEAPACKGLADSTONE BANK’s senior vice president and chief compliance officer. Hemhauser has worked in the profession for 25 years, most recently at FIS Global as senior compliance manager. Jeralyn L. Lawrence, of the law firm NORRIS MCLAUGHLIN & MARCUS, received the 2014 New Jersey State Bar Association Distinguished Legislative Service Award for her continuing advocacy on alimony reform. The law firm GIBBONS P.C. announced William J. Castner Jr. will serve as the new leader of its government affairs department. In addition, the firm has added four new lawyerlobbyists, including Christine A. Stearns, formerly of the New Jersey Business & Industry Association, and Jason J. Redd, formerly deputy

22 |

Gibbons P.C.

executive director and general counsel to the state Senate Majority Office. Gibbons attorneys Kevin G. Walsh and Robert Johnson were also named to the team. Anthony R. LaRatta, a partner in ARCHER & GREINER’s Haddonfield office, was named as a Fellow to The American College of Trust and Estate Counsel. The board of trustees of BERKELEY COLLEGE named Michael J. Smith the college’s next president. Smith, currently the senior vice president, finance and chief financial officer of BES Inc., the college’s corporate office, will take on the position July 1. The move comes after current President Dario A. Cortes announced his retirement. Beth M. Castiglia was appointed dean of the BERKELEY COLLEGE Larry L. Luing School of Business. She most recently served as dean and professor at the School of Business at Felician College in Lodi. Kevin Zavaglia was named president of the New York metro region for VERIZON WIRELESS, where he is responsible for sales, marketing, customer service and retail stores in a territory that includes parts of New York and New Jersey. Sean Burke was named senior vice president and CFO of INVESTORS BANK. Burke most recently worked as managing director and head of U.S. depository institutions for RBC Capital Markets. HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY expanded its fitness rewards program and is now offering it to large, selffunded employers. The innovative HorizonbFit program offers reimbursements of $20 per month to members who enroll and visit a participating fitness facility at least 12 days per month. ❖


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PROSPECTS Start building stronger business relationships today.

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