BUSINESS M A G A Z I N E Manufacturer & Business Association
VOLUME XXIV, NUMBER 11
Exceptional Services, Unprecedented Growth / Page 10
NOVEMBER 2011
RESOURCES AROUND THE GLOBE. EXPERIENCED PEOPLE AROUND THE CORNER. PUT THE GLOBAL STRENGTH OF CITIZENS BANK TO WORK FOR YOUR COMPANY. Managing a successful company in today’s competitive global marketplace requires vast resources, connections, and experience. And it requires a financial provider that is able to bring them to you. That’s Citizens Bank. Every day, we customize financial solutions for a wide range of companies. Backed by the strength of our corporate parent RBS Group, one of the world’s top ten financial services groups, we’ll deliver the solutions you need to succeed in today’s global economy. To learn more about how we can help your business prosper, contact our team of experienced local professionals or visit citizensbank.com/commercial. JOHN C. DILL, Sr. Vice President - 814-453-7265 EDWARD J. KLOECKER, Sr. Vice President - 814-453-7233 DOUG PATTON, Sr. Vice President - 814-453-7212
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November 2011
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
Why employers can no longer afford to ignore bullying in the workplace.
John B. Pellegrino, Sr., P.E., president and CEO of Ridg-U-Rak, Inc., discusses the family owned company’s most recent innovation as it prepares to celebrate 70 years of continuous operation.
7 / Health Matters DEB MESSER
9 / Legal Brief
How business owners can take advantage of recent tax-planning opportunities without giving up control. MICHAEL P. THOMAS
19 / Blue Ocean Strategy Leveraging your current resources to create breakthrough growth. ANGIE ANGUS
3 / Spotlight
10 / AccuSpec Electronics, LLC Discover why this Erie, Pennsylvaniabased provider of Electronic Manufacturing Services is experiencing unprecedented growth.
15 / On the Hill Association Director of Government Affairs Lori Joint explains how the department is working to provide a powerful, unified voice for business in Harrisburg and Washington, D.C.
24 / Corporate Gift Guide In a challenging economy, employers are looking for creative ways to celebrate the holiday season with their clients and employees. View our special 2011 Corporate Gift Guide now!
EVENTS >
22 / Training Graduates See photo coverage of the Association’s recent Recognition Ceremonies honoring more than 100 graduates of our professional development and computer training courses.
DEPARTMENTS > 5 / Business Buzz 16 / HR Connection
20 / HR Q&A 28 / People Buzz
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Strength In Numbers
MacDonald Illig has one of the largest groups of Real Estate attorneys in the region. Our experience enables us to handle every phase of real property acquisition, financing, development and land use, representing businesses, developers, lenders and individuals. When you’re ready to make your move, MacDonald Illig’s Real Estate group stands ready to help.
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SPOTLIGHT > by Jessica Crocker Founded in 1942, Ridg-U-Rak, Inc., headquartered in North East, Pennsylvania, is a designer, manufacturer and integrator of material handling and distribution systems. With more than 350 employees and 200,000 square feet of manufacturing space, the company utilizes automated, computer-controlled production lines to produce more than 100 million pounds of pallet rack, high-density storage rack and specialized rack systems each year. The Business Magazine recently asked President and CEO John B. Pellegrino, Sr., P.E. to discuss the family owned company's most recent innovation, the Seismic Base Isolation System, as it prepares to celebrate 70 years of continuous operation.
Please describe how Ridg-U-Rak got its start and how critical the investment in research and development was in the beginning of the company? Historically speaking, Ridg-U-Rak struggled for several decades after World War II. We were a minor player in a rapidly developing storage rack business. When I came on the scene, I realized that the company had both strengths and weaknesses. It suffered from a lack of marketing vision, the plant depended on brute force labor rather than automation, and the company was weak in engineering talent. On the other hand, it had a dedicated labor force and the rack design offered some real advantages over competing rack designs. We produced a rack column that was more resilient than most, and we owned a patented three-point connection that was uniquely stable in the industry. Keying off these features, we began to seek ways that we could increase our talent base and incorporate engineering expertise in providing more sophisticated storage systems. We also began to rearrange the manufacturing facility and make small advances in automated processing. And, of course, we needed to begin a marketing campaign that would convince new customers that we had new capabilities. Being a professional civil and structural engineer with years of experience in marketing, sales, and hands-on experience in steel and machine shops, I had a plan for success. How did your product offerings evolve over the years? One of the first items that required attention was a closer control of tolerances. We developed a superior reinforcing method to strengthen our columns against inadvertent forklift impacts during warehouse operations. After that, we were prepared to engineer some really nice storage systems that could accommodate the ever-evolving forklift truck designs that the material handling industry was developing — like the trucks that could now reach heights of over 24 feet, or could operate in much narrower aisles. We also did basic design and development on a better kind of rail system that is especially desirable for deep-lane Drive-In Rack storage. Again, responding to customer needs and new fork-truck capabilities, we developed a Push-Back rack that permits deep-lane storage from a common pallet opening at the aisle. Your newest innovation, the Seismic Base Isolation System, is designed to safeguard your rack systems. What kind of work went into its development? Storage racks have been designed to rest upon a solid base, but when that base begins to shake, there is little that can be done to prevent thousands of pounds of products from falling from high elevations. Both life and product are at risk. After serious earthquakes had caused storage rack failures, FEMA adopted new guidelines that require rack structure integrity during a moderate to severe earthquake. We took on the serious responsibility to research and develop a system that would be a quantum leap in the design of storage racks for earthquake-prone areas. We then teamed up with the State University of New York at Buffalo to perform massive earthquake simulations in their test facility. Lots of hard work led to an earthquake-resistant system that will operate perfectly through the most powerful anticipated earthquake the country could ever experience. Because of this work, we received the Excellence for Innovation award by the National Earthquake Conference. In 2012, Ridg-U-Rak will mark 70 years of continuous operation as a family owned company. What do you credit for this longevity? I have often said that we are a dinosaur among area businesses. So much of our manufacturing base has been driven away, or enticed away, or has simply just ignored change. If we had insisted on doing the same things we were doing in decades past, we would be among those that are just a memory. Listening to the market and supporting innovation are keys to survival. How are you continuing to evolve and stay competitive within your industry? By keeping pace with both customer demands and innovations by complementary suppliers, RidgU-Rak has been successful in climbing from an insignificant player to one of the top five companies in our field. We have been fortunate to have a great mix of hard-working and talented people who provide the energy for our success. And when difficulties arise we have found ways to redirect our course to maintain momentum. Because we are successful in the marketplace, we also have been able to exert a significant influence in our professional trade association, working with engineering task forces to help elevate the integrity and expertise of the entire storage rack environment. I think that staying with this philosophy, we will be able to continue to develop new products and new customers well into the future.
VOL. X XIV, NO. 11 NOVEMBER 2011 Manufacturer & Business Association Board of Governors
Editor in Chief Executive Editor Managing Editor & Senior Writer Communications Specialist
Yvonne Atkinson-Mishrell John Cline Dale Deist Bill Hilbert Jr. Timothy Hunter Dan Ignasiak Richard Knight J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Phil Tredway Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Jessica Crocker jcrocker@mbausa.org
Contributing Writers
Angie Angus Deb Messer Michael P. Thomas
Photography
Ron Stephens La Mirage Studio 814/835-1041 Ridg-U-Rak, Inc.
Advertising Sales
Design, Production & Printing
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net
ON THE COVER: Integrity, reliability, flexibility: Three principles upon which AccuSpec Electronics, LLC, a full-service provider of Electronic Manufacturing Services, has built – and grown – its business and reputation, both in Erie, Pennsylvania and beyond. For more information, see Page 10.
Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2011 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
November 2011 > www.mbausa.org > 3
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Business Buzz DOWNLOAD YOUR FREE MBA TIME-CHANGE POSTER NOW It’s time to turn the clocks back! Download your free TimeChange Poster from the Manufacturer & Business Association’s website, www.mbausa.org, and post it in a highly visible location in your place of business. Daylight-Saving Time begins at 2 a.m. Sunday, November 6. RECTENWALD ARCHITECTS FEATURED IN HEALTHCARE DESIGN MAGAZINE Rectenwald Architects, Inc. was showcased in a recent issue of Healthcare Design magazine, a national health-care publication for owners, architects and designers. The article highlights the firm’s work on the UPMC Hamot Women’s Hospital. According to the article, hospital leadership wanted to usher in a new era of women’s health care in the region. Rectenwald’s design delivered – resulting in a “soothing, calming, aesthetically pleasing, and not overly institutional-looking building,” said UPMC Women’s Hospital President Debbie Burbules. The three-story, 69,000-square-foot vertical expansion to the hospital’s existing two-story Resource Center Building began in August 2007 and was completed in December 2010. For more information, visit www.r-arch.com. KEFFER DEVELOPMENT’S ATHLETIC TRAINER SYSTEM RECOGNIZED AS TOP PRODUCT Keffer Development’s Athletic Trainer System® was named one of the top products at this year’s National Athletic Trainers’ Association (NATA) conference in New Orleans. The software, which allows trainers to track injuries, treatments and physicals, has been utilized by high
DEPARTMENTS > Contact: Jessica Crocker
MOORE RESEARCH AWARDS INAUGURAL RESEARCH GRANT Following a lengthy application and review process, Moore Research Services, a global market and opinion research firm, recently awarded a $10,000 research grant to the United Way of Erie County. The organization was expected to use the monies to research and better understand how to reach those employed in nontraditional settings, as well as retirees, with results of the study to be released this fall.
From left: Lindsay Moore, Moore Research; Colleen Moore Mezler, president of Moore Research; Bill Jackson, president of the United Way of Erie County; and John Simon, director of Marketing, United Way of Erie County.
schools, colleges, professional sports organizations, hospitals, clinics and workplaces across the globe. Keffer Development has more than 15 years of experience in providing IT solutions for business, education and government clients. The Grove City, Pennsylvania-based company also provides technology planning and website design, development and hosting. For more information, visit www.kefferdevelopment.com. LARSON DESIGN GROUP NAMED TO 2011 HOT FIRMS LIST Larson Design Group recently was ranked 65 on management consultant Zweig White’s Hot Firms List, out of 175 firms. The Hot Firms List recognizes the industry’s most successful firms as measured by their revenue and earnings performance over the past three years in comparison to their peers. Hot firms are ranked by overall industry, size and service type.
Larson Design Group is a multidisciplined brand architecture, engineering and surveying firm, providing innovative design solutions for the private and public sector, headquartered in Williamsport, Pennsylvania. For more information, visit www.larsondesigngroup.com. STAIRWAYS OPENS FAMILY THERAPY & TRAINING INSTITUTE Stairways Behavioral Health announced the opening of a new clinic, on Erie’s east side, dedicated to the practice of family therapy. Sharing a campus with Stairways’ Center City Arts center on the grounds of the historic Rose Koehler Curtze estate at 138 East 26th Street, the new Family Therapy and Training Institute provides a centrally located retreat for children, adolescents and their families. For more information, call 814/878-2094, or toll-free 888/453-5806, or visit www.StairwaysBH.org. November 2011 > www.mbausa.org > 5
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Health Matters
EDITORIAL > by Deb Messer
How to Combat Bullying in the Workplace Bullying – long the concern primarily of parents, teachers and principals – has become an issue that office managers and CEOs can no longer ignore. In recent years, employers have had to face the problem of diminishing civility in the workplace and its frequent byproduct, bullying. Bullying is not always intentional, but it is often a symptom of other negative things that may be going on in a workplace. There are ways of behaving, managing, and being in the workplace that can be insidious. Identifying Workplace Bullying It can be called disrespect, rudeness, bad manners or a lack of interpersonal skills, but bullying always comes down to unacceptable behavior in the workplace. This behavior causes distress for the targeted employee, the co-workers who witness it, and any clients who may be affected by them. It impacts the overall morale of an organization. Bullying is repetitive over time, and it escalates or worsens if unchecked. It usually involves a power disparity. It is more than an occasional rude remark or thoughtless gesture; it is a pattern of behavior that serves to put down, embarrass or disempower another person. The Impact of Workplace Bullying Any organization where bullying occurs or is tolerated stands to lose. Some of the effects of bullying include: • Retention problems • Absenteeism • Decreased engagement • A climate of fear and mistrust • Damage to a company’s public reputation and image • A reluctance by employees to share new ideas
• Diminished creativity and innovation. Bullying Statistics Key findings from a survey for the Workplace Bullying Institute conducted by Zogby International: • 37 percent of American workers – or 54 million – reported being the target of bullying. • 12 percent reported witnessing bullying. • 72 percent of all bullies are in a position of authority. • More men (60 percent) are perpetrators than women. • 40 percent of bullied employees do not tell their employer. • 62 percent of employers either ignore bullying or take action that makes the situation worse. • 45 percent of those targeted reported stress-related health problems. • 3 percent of bullied employees take legal action. How Employers Should Handle Bullying Bullying is definitely “health harming.” The impact can be emotional, psychological, physical, or social and it may result in a loss of production. Moreover, employees who witness other employees being bullied can exhibit reactions and symptoms similar to those of the targeted employee. Workplace bullying does not occur in a culture that does not allow it. A culture of civility will largely determine what employees consider as acceptable and unacceptable behaviors. Leaders shoulder much of the responsibility for promoting civility and for addressing behaviors that do not support a respectful workplace. Disrespectful behaviors
can become so ingrained in a culture that employees may not recognize that they are treating each other in ways that are hurtful. Part of a leader’s job is to set and maintain standards for employees. Organizational leaders need to recognize the more subtle signs of bullying, including those that are entrenched in the system. They also have to know how to respond to it when they see it. Leaders must learn how to convey expectations for civil behavior to their employees and how to consistently and fairly respond to incidences. Most importantly, leaders must do a thorough and honest assessment of the workplace culture, policies and expectations of staff, as well as their own management styles. For more information about workplace bullying, you may contact Deb Messer at messerm@upmc.edu. For health insurance information, visit www.upmchealth.com. Deb Messer is an account manager for LifeSolutions, a UPMC WorkPartners affiliate. UPMC WorkPartners is part of the integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products. These include UPMC Health Plan, UPMC for You, Askesis, Community Care, UPMC Dental Advantage, and E-Benefits.
November 2011 > www.mbausa.org > 7
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Legal Brief
EDITORIAL > by Michael P. Thomas
Giving Away Value Without Giving Up Control Individuals are currently permitted to make gifts of up to $5 million free from federal gift and/or generation-skipping transfer tax. However, absent legislation extending these expanded exclusions, they will be drastically reduced in 2013 — to $1 million for the gift tax and to approximately $1.4 million for the generation-skipping transfer tax. With just over one year before these lower exclusions take effect, a limited window exists to take advantage of significant planning opportunities. In light of the foregoing, small business owners and their advisers have been inundated with countless articles outlining the potential tax savings associated with gifting techniques designed to take advantage of the expanded exclusions. While these recommendations are certainly worth exploring, small business owners often face two significant practical obstacles when making gifts: lack of liquidity and the desire to maintain control of the business. Individuals with sufficient liquidity can use cash to make large gifts, either outright or in trust, without any concern regarding the impact on the small business. However, the vast majority of small business owners’ assets are typically tied up in their business, and selling these assets to produce liquidity for estate planning purposes is simply not an option. Even where individuals have considerable assets outside of the business, there are often both tax and non-tax factors preventing them from gifting such assets. Individuals lacking liquidity are typically left with few alternatives and often consider gifting a portion of the ownership interest in their business in order to take advantage of estate planning opportunities. While the tax reasons for such gifts make sense, few small business owners are willing to cede control of the business to
the next generation, especially if the next generation is “unproven” or not involved in the business whatsoever. Recapitalization One option to consider involves recapitalizing the business into both voting and nonvoting stock. The nonvoting stock has identical rights as the voting stock except that its owners have no ability to control the business. For S Corporations, such recapitalizations do not run afoul of Internal Revenue Service regulations allowing only one class of stock. The value of both the voting and the nonvoting stock is typically comparable, and is subject to discounts for lack of marketability and minority interest. Once the recapitalization occurs, the small business owner can use nonvoting stock to transfer a significant portion of the value of the business to the next generation. However, the business owner retains as much of the voting stock as he or she desires in order to maintain absolute control over the business. This creates an ideal way for a small business owner to “fund” his or her estate plan without concerns regarding disruptions in the operations of the business. Moreover, the value of the nonvoting stock that is transferred is “frozen” for estate and gift tax purposes, and all future appreciation escapes transfer tax entirely. The existence of nonvoting stock also allows the small business owner to equalize distributions among all of his or her children regardless of whether they are involved in the business. For children involved in the business, the business owner can then incorporate additional incremental transfers of voting stock in order to slowly cede control as such children prove their aptitude. Shareholder Agreement Any recapitalization also involves review or implementation of a shareholder agreement in order to guard against
disruptions in the operations of the business. The shareholder agreement typically contains provisions prohibiting or limiting transfers of stock to outsiders, and sometimes requires shareholders to actually work in the business. For permitted transfers, the shareholder agreement provides procedures for determining the value of and paying the purchase price for any stock transferred. The shareholder agreement may contain different provisions for each of the shareholders, and the shares retained by the small business owner need not be subject to the same restrictions as other shares. Moreover, the small business owner can retain the ability to require non-controlling shareholders to participate in any decision to sell the business. Therefore, the shareholder agreement affords small business owners additional control over the ultimate disposition of the business. For more information on recapitalization and/or estate and succession planning matters, contact Mike Thomas at MacDonald, Illig, Jones & Britton LLP at 814/870-7711 or mthomas@mijb.com. Michael P. Thomas is an associate at the law firm of MacDonald, Illig, Jones & Britton LLP. A graduate of Juniata College and the Dickinson School of Law of the Pennsylvania State University, he practices in the areas of estate planning, estate and trust administration, tax and business law. He is licensed to practice in both Pennsylvania and Florida.
November 2011 > www.mbausa.org > 9
rowth
nted G e d e c e r p n U ervices, S l a n o i t p e c Ex
AccuSpec’s management team leads the charge for the integrity, reliability and flexibility by which the company has built its reputation.
Integrity. Reliability. Flexibility. These are the three principles upon which AccuSpec Electronics, LLC has built – and grown – its business and reputation, both in Erie, Pennsylvania and beyond. “To expand our business as quickly as AccuSpec has without sacrificing product quality, customer service and overall business excellence is truly something rare and exciting to see in a company,” states President Michael Towner. While many companies have downsized or shuttered their doors, the full-service provider of Electronic Manufacturing Services (EMS) – from printed circuit boards and cable assemblies to complete integrated electronic box build assemblies – has experienced unprecedented growth in the past three years. After relocating to a modern 60,000-square-foot facility that allowed it to boost its production capability and technology in 2009, the business has reported significant earnings, including a 55-percent increase in 2010 sales over 2009, and a 101-percent sales growth year-to-date over 2010.
Executives agree that improvements to production space, technology and back-end systems have all helped to catapult AccuSpec’s operations to the next level. But at the core of the company’s success is a work force that takes ownership in delivering a quality product, as well as a strong moral foundation that guides each business decision. “The work force here is very dedicated,” says Vice President Ernie Carlson, who, along with two other partners, founded the company in 1989. “They want to do a good job and see the company succeed.” “Customer service and quality were something that Ernie drove through the organization,” adds Chief Financial Officer Michael Jenkins. “Our employees believe that we must service our customers and make a quality product.”
A Foundation of Integrity
The five-acre campus at 8140 Hawthorne Drive in Erie is impressive, but its beginnings were much more humble. The company, which today employs more than 217 on two shifts, began as a two-man operation in McKean, Pennsylvania. “When it started, we were selling components and our customers started asking us to sell one part number rather than multiple components – basically, assemble it. That is what we started doing,” says Carlson. “From there we explored cable assembly, thru-hole
10 < www.mbausa.org < November 2011
assemblies and surface mount. As the opportunities presented themselves, we evaluated each one and it became a piece of our business.” In 2006, AccuSpec was purchased by Main Street Capital Holdings, LLC, a private equity firm based in Pittsburgh well known for acquiring businesses and growing them to high-performing companies. Main Street supported the acquisition by investing in both technological and human capital. “Main Street’s and Ernie’s philosophies were very similar,” says Jenkins. “They both believe in customer service and quality, and that people drive an organization. Those are the things you concentrate on to make sure the organization functions well.”
Reliable Services
AccuSpec is a company that stands out also by the wide range of services it provides. The firm’s “cradle to grave” services include thru-hole and SMT printed circuit boards, cables, conformal coating, chassis assembly, testing, troubleshooting and full turnkey box builds, as well as rapid prototyping, repair and maintenance support. “People aren’t choosing our products, they’re choosing our services,” says Material Manager Tom Rettger. “We’ll help you design the board, we’ll tell you how we can improve its manufacturability, and then provide everything from the prototype to the production.” As a result, AccuSpec’s electronic assemblies can be found in everything from oxygen concentrators and ultrasound machines to locomotives, naval defense systems and industrial controls – even the blender at your local Starbucks. The company builds more than 600 custom assemblies and tracks more than 10,000 different components to support each customer’s complex manufacturing requirements. Its high-speed surface mount technology (SMT) can place more than 3 million chips per week with accuracy up to 35 microns – or one-millionth of a meter. “AccuSpec prides itself on its ability to manufacture complex assemblies some within excess of 1,600 placements,” states Sales Manager Bob Borgia. “And each of those placements represents multiple opportunities for defects. What separates us from everyone else is our ability to execute customer requirements at the highest quality at a competitive price.” The company’s knack for accuracy and efficiency is just part of the reason AccuSpec has been able to take business away from foreign competitors in Mexico and China. In one instance, the company was able to bring on a new customer by matching price and improving both quality and delivery performance. This made the customer’s purchasing decision very simple. And it does not stop there. “Beyond just assembling, delivering and building our customer’s product, we create a technical partnership,” says Engineering Manager Jennifer Harkless. “There is a lot of dialog that takes place regarding the right decisions for component selection, processes – and we do that face to face.” Building high-quality products and improving delivery times requires more than an investment in facilities and equipment – it requires an investment in back office, material management >
AccuSpec’s move to a modern 60,000-square-foot facility in Erie, Pennsylvania has accommodated the unprecedented growth of the past several years.
About: AccuSpec Electronics, LLC is a full-service provider of Electronic Manufacturing Services (EMS), from highend PCB assembly and box build to full system integration, serving, among others, the industrial, medical, transportation, data management storage, communications, military and aerospace markets. History: Established by Ernie Carlson and two business partners in McKean, Pennsylvania in 1989. In 2006, AccuSpec was purchased by Main Street Capital Holdings, LLC, a private equity group that has been involved in the EMS industry for more than a decade. Operations: The company’s 60,000-squarefoot facility at 8140 Hawthorne Drive in Erie, Pennsylvania is both climate and humidity controlled. Centrally located between large metropolitan areas in the tri-state region, AccuSpec’s facility utilizes the most modern technology – including dissipative electrostatic discharge flooring across the production floor – to ensure product quality. Employees: Approximately 220 employees on two shifts. Certifications: ISO 9001:2000 and ISO 13485:2003 (medical); IPC A-610D. For more information: Visit www.accuspecelectronic.com, or contact Sales Manager Bob Borgia at 814/4642051 or bborgia@accuspecelectronic.com.
November 2011 > www.mbausa.org > 11
and quality systems. Its Infor™ ERP SyteLine, utilizes paperless work instructions, uses barcode readers to capture real-time labor and provides precise inventory management information. “Not only does it help us make sure that our inventory is here in a timely manner, but it also gives us the ability to tightly control all aspects of the material side of the business,” says Jenkins. AccuSpec utilizes a new quality management system – ACES (Assured Customer Excellence System) – which monitors defects per million opportunities, allowing them to deliver high-quality products and attain industry low defect rates. Most important, the system prevents any board with a test failure or unresolved quality issue from being shipped. The investment into back office systems as well as AccuSpec’s expansion and relocation were made with a concerted, long-term view of the company’s future. Despite the economic conditions of the past several years, AccuSpec remained committed to building a new facility that would best serve its expanding customer base. “We have the equipment and facility we need to provide outstanding customer service, and we make sure that when we spend money, it’s to accomplish that goal,” says Jenkins.
Flexible Support
The investment in people has been one that AccuSpec has not taken lightly. Since April 2011, the company has nearly doubled its work force, necessitating thorough, hands-on training, which is tracked by a formal system that begins at orientation. Following several days of skill assessment and training, each employee is paired up with a seasoned member of AccuSpec’s production team to better prepare them for the demands of the complex and detailed work required by both AccuSpec and the electronics industry.
That commitment translates to AccuSpec’s growing work force, which remains focused on providing the highest quality product to its customers. These customers – primarily located within a 300-mile radius of the Erie facility, including Pittsburgh, Buffalo and Cleveland – are more easily able to visit and work with AccuSpec during new product development, providing the opportunity to better understand endproduct needs and to work out any issues that may arise during the initial phases of production. “We insist on an open partnership with our customers,” says Borgia, “because it makes us a stronger supplier better able to meet their requirements. That focus is really how you evolve the company and retain customers.” Continuous improvement, and a commitment to the integrity, reliability and flexibility that has made AccuSpec a trusted provider of EMS services with a high-degree of technology, is a recipe for success. “It’s taking that formula and relentlessly pursuing it,” Towner says. “Bottom line, it’s our relentless dedication to customer focus, quality and operational excellence that will help AccuSpec continue to see unprecedented growth.” For more information, visit www.accuspecelectronic.com.
Because of the IPC standards within the industry, “we need to have the right people in the right place on the floor,” says Harkless. In addition to the investment in training, AccuSpec has increased its benefit offerings, specifically in the area of the company’s bonus program, which is based on defect, return and scrap rates. They’ve also made a concerted effort to promote within, allowing team members to grow with the company and expand their skills. Such initiatives have earned the company accolades from various business and employers’ organizations – including the 2009 Employer of the Year award from the Economic Development Corporation of Erie County. “Any award is nice to get, but when it covers the whole company, it is a reflection of the company’s commitment to its business and employees,” notes Rettger.
12 < www.mbausa.org < November 2011
The company’s dedicated work force takes pride in offering a quality product with on-time delivery.
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OntheHill
DEPARTMENTS > Contact: Lori Joint
Bottom Line, We’re Working for You Lori Joint is the director of Government Affairs at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or ljoint@mbausa.org.
“A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor and bread it has earned – this is the sum of good government.” Those words by one of our founding fathers, Thomas Jefferson, best capture the fundamental beliefs of the Manufacturer & Business Association: Leave business free to regulate its own pursuits, without the undue burdens of over-regulation and skyrocketing taxes, and model government after well-run enterprises. In the process of promoting that pro-business, pro-growth agenda, we sometimes hear comments such as “the MBA leans right” or that we’re “constantly singing from the Republican hymnal.” To be certain, many of our allies are Republicans, not because of the “R” after their name, but because they espouse the very beliefs to which we have long held. The Association is not Republican, Democrat or Independent – we are pro-business. While lobbying for the passage of the Fair Share Act, we visited with Republicans as well as Democrats, working with more than 50 other like-minded organizations in the process. And starting later this fall, we will be conducting town hall meetings throughout our 27-county membership area. Both Republican and Democratic legislators will be invited to these forums, which will provide lawmakers the opportunity to meet with our members, and our members the chance to express their views and concerns. Topping that list are jobs, the federal deficit, government spending, onerous regulations, the burdensome tax structure and health care. The Association doesn’t believe that Republicans have the answers to all these issues – there are good and bad ideas on both sides of the aisle. We are looking to anyone – red, blue or anywhere in between – who will do something to truly help the many businesses that are suffering. And make no
Don’t forget to vote! The General Election for municipal and judicial elections is Tuesday, November 8. For an in-depth look at the judicial candidates, log on to www.mbausa.org and click on “Webinar Archives.”
mistake about it: Each and every business is directly affected by the decisions made in Harrisburg and Washington, D.C. It’s important now, more than ever, for business owners and community leaders to stay informed. I encourage you to take advantage of the resources made available by the Association’s Government Affairs department, which works continuously on behalf of our more than 4,500 members. With two registered lobbyists and a Harrisburg office just steps from the Capitol, the department provides a powerful, unified voice for business. Join in the fight by signing up for our daily and weekly e-newsletters, attending legislative luncheons and issue briefings, participating in a webinar, scheduling a tour of your facility or by joining our Political Action Committee. Now that Congress and the General Assembly are back in session, we will be visiting every legislator whose district is in our membership area – whether Republican or Democratic. Pennsylvania faces real problems, and we plan to work with those who are dedicated to solving those problems. We’d invite you to contact us and let us know which issues are important to your business, and what concerns you most. Your voice does matter and we are listening. Get involved. Together, we can make a difference. Contact Information: Lori Joint Director of Government Affairs Email: ljoint@mbausa.org Phone: 814/833-3200 or 800/815-2660 Anna L. McCauslin Government Relations Representative Email: amccauslin@mbausa.org Phone: 717/525-7213 or 800/815-2660
Upcoming Events:
Monday, November 7 – Crawford, Mercer and Venango Area Business Town-Hall Meeting Tuesday, November 8 – Erie Area Business Town-Hall Meeting November 2011 > www.mbausa.org > 15
HR Connection U.S. WORKERS TO SEE MODEST RAISES IN 2012 Salaried American workers are likely to see a 2.8-percent pay bump next year, according to a report from human resources consultancy Towers Watson.
Despite the fact that “potentially violent and difficult-to-predict market moves are likely for a number of years,” a separate report by Towers Watson found that companies said they will still fully fund annual bonuses for staff.
Survey results from the 773 U.S. companies polled found that raises will stay moderate until the economy finds solid footing. It further found that executives and nonexempt employees likely will receive a similar percentage raise.
SURVEY: RETIRING BOOMERS COSTLY TO MANUFACTURERS The shortage of skills resulting from retiring baby boomers will cost the nation’s largest manufacturers an estimated $100 million over the next five years.
Workers with the highest performance ratings will earn median salary increases of 4.5 percent – 80 percent more than their colleagues with average ratings.
More than 55 percent of the largest U.S. manufacturing companies surveyed by the Nielsen Co. say they stand to lose that much – or more – as boomers retire. As a result, 45 percent of those surveyed are
16 < www.mbausa.org < November 2011
encouraging older workers to stay on the job. Some 47 percent of respondents said they would be interested in filling their open slots with full-time workers, while 53 percent said they would be more likely to outsource the positions, especially amongst their company’s maintenance (48 percent), information technology (48 percent), and human resources (27 percent) departments. Finally, beyond foreign competition, increased government regulation and the skilled labor shortage, 68 percent of survey respondents indicated that economic stability was the biggest issue facing American manufacturing over the next five years.
DEPARTMENTS > Contact: Stacey Bruce
Proposed Rules Help Employers, Consumers Choose Best Health Insurance Options On August 22, 2011, the U.S. Department of Labor, Health and Human Services, and the Treasury proposed new rules under the Affordable Care Act that will enable consumers to easily understand their health coverage and determine the best health insurance options for themselves and their families. Rules also were proposed to help employers find the best coverage for their employees. The new forms, scheduled to be available in 2012, will be a critical resource for more than 180 million health insurance consumers with private insurance coverage. These rules will enable consumers to more easily understand the coverage they already have and more able to compare available options in renewal. Specifically, the proposed regulations would ensure consumers have access to two forms to help them understand and evaluate their health insurance choices. These include:
• An easy to understand summary of benefits and coverage; and • A uniform glossary of terms commonly used in health insurance coverage, such as “deductible,â€? “copayâ€? and “co-insurance.â€? The proposed rules give consumers straightforward, standardized information on their choices upfront, helping them understand the key features of a policy or plan and allowing them to make a more informed decision. Health plans also must provide notice at least 60 days before any significant modification is made in the plan or coverage during the plan year. The summary of benefits would include new, standard health plan tools known as “coverage examples,â€? much like nutrition facts on labels. The coverage examples would illustrate what proportion of care expenses a health insurance plan would
cover for three common scenarios – having a baby, treating breast cancer and managing diabetes. Additional scenarios will be added in the future. Again, these are only proposed regulations. More information is available by visiting http://www.healthcare.gov/news/ factsheet/label08172011a.html. For questions about determining your company’s best health insurance options, contact me at 814/833-3200, 800/815-2660 or psmith@mbausa.org.
Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.
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THEY KNOW THE SECRET... DO YOU? A growing number of people in our community know the secret to success. They know the value and power of utilizing accounting and tax services from the experts at Schaffner, Knight, Minnaugh & Company, P.C. These people also know they will receive world class service from the best and brightest in the field. We are large enough to specialize, and small enough to personalize. We draw upon the international resources of the McGladrey Alliance, and we have a passion to be 100% right for you every time.
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EDITORIAL > by Angie Angus
Leveraging Your Current Resources Angie Angus is the manager of Blue Ocean Strategy Programs and Support Services for the MBA Blue Ocean Strategy Center - United States, and a certified Blue Ocean Strategy practitioner. The Center teaches companies and organizations of all sizes and types how to implement Blue Ocean Strategy in order to find new markets for their products and services.
This article is part of a series that features excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne. The four organizational hurdles encountered during the execution stage of Blue Ocean Strategy – cognitive, resource, motivational and political – prevent many companies from successfully implementing their strategy. With the knowledge to overcome these hurdles, companies can successfully execute a strategy that allows breakthrough growth. As discussed in the previous article, the cognitive hurdle is overcome through Tipping Point Leadership. To overcome the resource hurdle, many people assume that the greater the change in your strategy, the more resources it will take to achieve your goals. There are times when you will need to lobby for more resources, but you also may be able to achieve your goals without a bigger budget. The following are three ways to leverage your current resources. Hot Spots, Cold Spots and Horse Trading Hot spots are areas within your company or organization that have a high impact or heavy workload but are short of resources. Cold spots are the opposite. They are areas that have many resources but don't have as much impact on the business. The final way to leverage resources is through horse trading, which is when two different departments have an excess of one resource and a need for another, so the two departments trade resources. The New York City Police Department (NYPD) provides great examples of all three. Hot Spots When then-NYPD Police Commissioner Bill Bratton set out to clean up the crime problems in the New York City subway system, the initial thought was that more police officers would be needed to patrol the areas of the subway where a higher percentage of the crimes were occurring. Instead, he looked at the areas where crime was more prevalent (hot spots), taking police officers from areas that historically had little crime (cold spots) and reassigning them to areas of
heavier crime. By redistributing the officers to the hot spots, he achieved the greatest drop in subway crime in the history of the transit system. Cold Spots To be able to reallocate resources from cold to hot spots, you must first identify the cold spots. In this case, the 16 hours, on average, it took for an officer to process someone arrested in the subways was a cold spot. Those hours were time that the officer was completing paperwork instead of patrolling the subways to prevent crime. To increase efficiency in this area, Bratton introduced the use of “bust buses,” retrofitted buses with equipment to process criminals onsite. Criminals were brought directly out of the subway and onto the buses, which were parked outside of subway stations with the highest occurrences of crime. Processing a criminal now took only one hour instead of 16, freeing up the officer to get back to patrolling the subway. Horse Trading The New York Transit Police were short of office space but had more unmarked vehicles than needed. The New York Division of Parole, on the other hand, was short of cars but had excess office space. A trade between the two worked out perfectly, benefiting both groups and enabling them to solve their resource problems without increasing the budget. As stated in Blue Ocean Strategy, "By learning to use their current resources right, companies often find they can tip the resource hurdle outright. What actions consume your greatest resources but have scant performance impact? Conversely, what activities have the greatest performance impact but are resource starved? When the questions are framed in this way, organizations rapidly gain insight into freeing up low-return resources and redirecting them to high-impact areas. In this way, both lower costs and higher value are simultaneously pursued and achieve.” Next month: Overcoming motivational hurdles. If you are interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa.blueoceanstrategy.com or contact me at aangus@mbausa.org. November 2011 > www.mbausa.org > 19
HR Q&A HOW DOES A COMPANY CONDUCT A TRAINING NEEDS ANALYSIS? Before you begin a training program, it is important to know what training the organization needs. A training needs analysis (TNA) is an important step in determining what areas need to be addressed and in identifying the employees who need training. A needs analysis involves collecting information to determine if a training need exists and, if so, what kind of training is required. It also should address why the need exists. If the problem identified is not attributable to worker performance, training may not be the best solution. For instance, a company might discover that its employees have received appropriate training to
20 < www.mbausa.org < November 2011
perform their jobs but are not motivated to do so. In this situation, it would be more appropriate for the company to reconsider its system of compensation and awards. Among the many different methods for conducting the needs analysis are: HR records, individual interviews, focus groups, observations, surveys, questionnaires and group tests. Each organization should select the most appropriate method, taking into account such factors as organization size, technology, structure, training staff, facilities and budget. WHAT IS CAREER PATHING AND WHAT ARE THE BENEFITS OF IMPLEMENTING IT? Career pathing is a company’s (or an employee’s) unique process for identifying specific career opportuni-
ties within the company’s structure and following logical steps to attain the career goals. HR professionals use career pathing programs to develop and grow their internal employees so they are prepared to take on additional or new roles and responsibilities. One of the most important reasons to implement such a program is that employees are more likely to remain committed to the company. In addition, companies with career pathing programs have increased productivity and decreased turnover. Some of the different types of career pathing programs most commonly used include mentoring, coaching, leadership development programs, action learning, cross training and job rotation.
DEPARTMENTS > Contact: Stacey Bruce
Establishing an Accurate Salary Range Starts With Market Research Salary ranges assist employers in controlling their pay expenses and ensuring pay equity amongst employees – but how do you establish the appropriate range? Market research is the most important – and often, overlooked – part of the compensation planning process. This critical step ensures that the wages you are paying your employees have not been created in a vacuum. When conducting market research on salaries, remember the following: • Don’t match job titles. Be sure to read the descriptions of the jobs to make sure that the data matches the jobs at your company. • You get what you pay for. In order to have accurate salary
information, you will need to pay for it. It’s important to develop a budget for conducting market research. • Don’t rely on one set of data. For each job you are researching, try to obtain three surveys. • Participate. As an Association member, you can participate in any of our three wage surveys and receive the results at no charge. • Try to match jobs as best you can. Realize from the outset that each company has jobs that are unique and it will be impossible to find exact matches for all of your jobs. Instead, settle on those that closely fit the most important aspects of a particular job. Once you understand what the external market is paying for the
jobs your company performs, you can create ranges based on your research and the hierarchy of jobs. The rest of the process should be devoted to examining your internal equity amongst your employees and their pay. For more information about any of the Association’s three wage and salary surveys or for a compensation analysis, contact me at 814/8333200, 800/815-2660 or email rbruno@ mbausa.org. Rose Bruno is a PHRcertified HR generalist at the Manufacturer & Business Association.
Is Your Company Drowning in Volumes of Paper?
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Events
2011 Fall Training Graduates The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 100 graduates of its professional development and computer training programs. For complete photo coverage, visit the Photo Gallery at www.mbausa.org.
Computer Training — Erie
HR Essential Series — Erie
From left: Erin Caul, Donjon Shipbuilding & Repair LLC, and Robyn Hopper, Manufacturer & Business Association.
HR Essential Series — Erie
From left: Rose Bruno, Manufacturer & Business Association; Dave Jacquel, Modern Industries; and Edna Anabui, Voices for Independence. Not pictured: Marc Johnston, Channellock, Inc. and Amy Farrar, Presque Isle Downs & Casino.
HR Essential Series — Grove City
Front row, from left: Randy Newell, Atlas Pressed Metals; Debra Sidelinger, Northern Tier Community Action Group; Janis Bennett, Northwest Savings Bank; Kristen Mazzaferro, Brookside Assisted Living; and Robyn Hopper, Manufacturer & Business Association. Back row, from left: Vonda Malizia, L-3 Communications Electron Devices; Sharon Wehler, Bluewater Thermal Solution; Nathan Yost, Office of Human Services; Kate Lomax, Community Education Council of St. Marys; and Kimberly Briggs, Office of Human Services.
From left: Word Application Specialist Jodie Wroblewski, Erie Veterans Affairs Medical Center; Excel Application Specialist Stephen Sommers, Erie Veterans Affairs Medical Center; Excel Application Specialist Kevin Breter, Port Erie Plastics; and Amy Pontillo, Manufacturer & Business Association. Not pictured: Access Application Specialist Robert Hersch, Visiting Nurse Association of Erie County; Word Application Specialists Deltheia Nolen, Erie Veterans Affairs Medical Center and Suzan Taylor, McGill, Power, Bell and Associates, LLC; and Excel Application Specialists Rose Bruno, Manufacturer & Business Association, Daniel Maher, McInnes Rolled Rings, Senad Rakovic, Bridport Erie Aviation, and Peggy Watkins, North Coast Plastics Inc.
HR Essential Series — Erie
Front row, from left: Robin Braden, Pittsburgh Plastics Mfg.; Courtney Hordusky, Manufacturer & Business Association; Wendy Meeker, Wm.T. Spaeder Co.; Robyn Hopper and Stacey Bruce, Manufacturer & Business Association. Back row, from left: Kerri Fleet, Northwestern REC; Carol Amolsch, Fisher Ludlow, Inc.; Ingrid Rabbitt, McInnes Rolled Rings; and Cheri Haines, Ernst Conservation Seeds, Inc. Not pictured: Lisa Coburn, Medicor Associates and Paula Merkle, Corry Manufacturing. .
Certified Supervisory Skills Series — Erie
Front row, from left: Mary Hall, Erie General Electric Federal Credit Union; Evelyn Osterberg, Marquette Savings Bank; Lisa Anderson, McShane Welding; Kelly McGee, Team Hardinger Transportation; Shalan Anderson and Heather Johnston, EmergyCare Inc.; Lisa Zamierowski, Marquette Savings Bank; Nina Duda, Erie General Electric Federal Credit Union; Shelly Herman, Marquette Savings Bank; Stephanie Link, Snap-Tite, Inc; and Jodi Cole, Erie Insurance Group. Back row, from left: T.J. Hesch and Jessica Erickson, Marquette Savings Bank; Jon Spellman, St. Mary’s Home of Erie; George Thomas, EmergyCare, Inc.; Jamie R. Johnston, Millennium Inorganic Chemicals; Brad Morrow, BASF Catalysts; Randy Galbraith, Erie General Electric Federal Credit Union; Debbie Caruso, Erie General Electric Federal Credit Union; Nancy Enterline, Marquette Savings Bank; and David Dunn and Phillip Weaver, PHB Die Casting.
22 < www.mbausa.org < November 2011
Certified Supervisory Skills Series — Erie
Front row, from left: James Janicki, McInnes Rolled Rings; Rita Wood, Marquette; Mevlija Hodzic, Denise Walters and Jeannette Kindle, The Plastek Group; Jennifer Poulson, Opportunities Unlimited; Amber Shenk, Stairways Behavioral Health; and Kevin Rogers, The Electric Materials Company. Back row, from left: Ricky May, McInnes Rolled Rings; James Seeley, The Electric Materials Company; Bill Graham and Mohamed Aniz, The Plastek Group; Heather May Caspar, Stairways Behavioral Health; Grace Ewanick, Marquette Savings Bank; Richard Belfiore, Willis Proctor and Lucas Wade, D&E Machining; and T.J. Dolan.
Supervisory Skills Series — Grove City
Front row, from left: David Hozick, Mark Bubb, Jim Cameron, Bill Puckly, Dan Senchak, Rick Plassmeyer and Steve Skalos, Ellwood Group. Back row, from left: Eric Robbins, Justin Amy, Brandon Hinzman, Dan Fay, Terry Wilfong and Timothy Long, Ellwood Group.
Supervisory Skills Series — Williamsport
Front row, from left: Bob Tresp, Tom Burdick, Wade Potter and Rich Mason, Jersey Shore Steel. Back row, from left: Karl Born, Koppers Inc.; Gary Hornberger, Jersey Shore Steel; Mike Fleming, Jersey Shore Steel; Kevin Merrill, Ken Gough and Barry Hill, Alcan Cable; and Karl Wolfe, Jersey Shore Steel.
Supervisory Skills Series — Meadville
Front row, from left: Steve Kightlinger, Marquette Savings Bank; Tracy Pope, Instron; Kathy Krauza and Anita Hans, Marquette Savings Bank; and Patrick Calkin, Advanced Cast Products. Back row, from left: Larry Long, Ainsworth Pet Nutrition; Bob Hoffman, Marquette Savings Bank; Chris Johnston, Greenleaf Corporation; and Ken Seeley and Ron Overton, Ainsworth Pet Nutrition.
Supervisory Skills Series — St. Marys
Front row, from left: Jaime Leitzel, Alpha Sintered Metals; Wally Gribble, Bluewater Thermal Solutions; Matt J. Anders, Bluewater Thermal Solutions; Ann Hermanowicz, Alpha Sintered Metals; Tina Samick, Alpha Sintered Metals; Duane Lewis, Alpha Sintered Metals.
Supervisory Skills Series — Erie
Front row, from left: Will Oliver, Great Lakes Home Healthcare; Jason Stewart, Superior Tire & Rubber Corp.; John Hilburn, Emergycare Inc.; David Ball, Plastek Group; and Jay Johnston, Millenium Inorganic Chemicals.
Back row, from left: Rory O’Donnell, Manufacturer & Business Association; Carl Shilk, Alpha Sintered Metals; Jackie Herbstritt, St. Marys Community Education Council; Tracy W. Benson, Bluewater Thermal Solutions; Andy Meyer, Alpha Sintered Metals; Dwayne H. Hulings, Alpha Sintered Metals; Jeff Schaut, GKN Sintered Metals; Tom Olewnick, GE Sensing; John C. Lovett, Borough of Emporium. Not pictured: Brian Eckert, GE Sensing
Back row, from left: Keith Mulhorn, AMSAFE (Bridport Erie Aviation); Jennifer Humphries, Marquette Savings Bank; Paul Waite, Superior Tire & Rubber Corp.; Jennifer Bond, Marquette Savings Bank; and Micky Conway, Marquette Savings Bank.
Supervisory Skills Series — Erie Supervisory Skills Series — Grove City
Front row, from left: Craig Glass, Tom Stadnik, Rodger Rossman and Rick Pflug, Ellwood Group. Back row, from left: Mike Beall, Ed Marks, Ed Schrantz, John Onada and Dan Drinan, Ellwood Group. Not pictured: Troy Senchak, Ellwood Group.
Front row, from left: Erin May and Kathy Walter, Marquette Savings Bank; Jeff Rekitt, REXAM; Fawn Huya, Marquette Savings Bank; Audrey Heberlein, Erie General Electric Federal Credit Union; Grifton Pou, Erie Homes for Children and Adults; and Debra Mealy, Marquette Savings Bank. Back row, from left: Jessica Will, CMI EPTI, LLC; Dayna Kubeja, Marquette Savings Bank; Jim Spencer, Plastek; Angel Niemeyer, Dairy Queen; Ed McNabb, The Warren Company; JoAnne Griebel, Community Blood Bank of NWPA; and Steve Mraz, BSAF.
November 2011 > www.mbausa.org > 23
Corporate Gift Guide Contact these featured businesses for the cost savings you seek for all of your holiday gift giving and party planning needs.
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People Buzz MCGILL, POWER, BELL HONORS LONGTIME EMPLOYEE The regional certified public accounting firm of McGill, Power, Bell & Associates LLP recently recognized the service of Deborah Parker Pipp, CPA and a partner with the firm. A celebration was held at the Meadville Country Club to honor Parker Pipps’s 35 years of service with the firm, which has offices in both Erie and Meadville. A graduate of Edinboro University, Parker Pipp serves on the firm’s manufacturing services and nonprofit and government services groups, specialzing in tax services, software and management consulting, and research and experimentation (R&E) tax credits. Additionally, she is president of the Northwestern PA Chapter of the National Tooling & Machining Association (NTMA),
28 < www.mbausa.org < November 2011
treasurer of the Economic Progress Alliance of Crawford County, and treasurer and president-elect of the Kiwanis Club of Meadville. ERIE FEDERAL CREDIT UNION APPOINTS DIRECTOR OF BUSINESS DEVELOPMENT Kristi Bailey has been appointed the new director of Business Development and Services at the Erie Federal Credit Union. Bailey, who is a graduate of Edinboro University, comes to the Credit Union from GECAC, where she spearheaded the development and implementation of many demographicbased programs and services. In her new role, Bailey will be working with businesses in the Erie and Crawford county area to assist with their business needs, and will be an integral part of the marketing department.
LECOM PROVOST RECEIVES NATIONAL AWARD Silvia Ferretti, D.O., Lake Erie College of Osteopathic Medicine provost, senior vice president and dean of Academic Affairs, received the 2010 American Association of Colleges of Osteopathic Medicine (AACOM) Dale Dodson Leadership Award. The Assembly of Presidents presents the distinction to a college administrator who has made a significant contribution to the advancement and support of osteopathic medical education. SCHAFFNER, KNIGHT, MINNAUGH WELCOMES NEW PROFESSIONALS Schaffner, Knight, Minnaugh & Co., P.C., an accounting firm of specialists who serve privately held, for-profit businesses in manufacturing, construction, service organizations, retailers and wholesalers, has added two new professionals to its staff.
EDITORIAL > Contact: Karen Torres
Daniel B. Michael joined the firm to work in the Accounting and Auditing department, as well as the Tax Consulting and Compliance department. A graduate of Clearfield High School, Michael earned his bachelor’s degree in Accounting from St. Bonaventure University in 2010 and his MBA in 2011. In 2010 and 2011, he was honored with the NYSSCPA Outstanding Achievement in Accounting Award. In service to his community, he is the treasurer for Bona Responds Trip. Peter J. Morgante, CPA, brings more than 11 years experience in accounting and auditing and tax consulting and compliance to the firm, concentrating on corporate and individual tax planning and compliance, as well as working closely with property and casualty
insurance companies. A graduate of Jamestown High School, Morgante earned his associate degree from Jamestown Community College and his bachelor’s in Accounting from SUNY Fredonia. Morgante also is the treasurer of the Workforce Investment Board. NORTHWEST SAVINGS PROMOTES HOFFMAN TO SENIOR VP, MANAGER Northwest Savings Bank has promoted Neil R. Hoffman to corporate senior vice president and manager of the Commercial Lending Division. In this capacity, he will be responsible for all commercial lending activities, including supervision of the bank’s regional commercial lenders, loan production, asset quality, and regulatory compliance. Hoffman will develop and direct the bank’s strategic objectives for commercial lending, be responsible for the depart-
ment’s policies and procedures, and focus on implementing goals and objectives to improve the operating performance, service levels and customer satisfaction. AG AEGIS ADDS REGIONAL MANAGER AG Aegis Company, Inc., a Corry, Pennsylvania consulting firm specializing in environmental and safety management services, recently hired Loren Chase as regional manager. In his new position, Chase will play a vital role in the development and growth of the business. Before joining the company, Chase worked for E.E. Austin & Son, Inc., where he gained extensive experience and a comprehensive understanding of highway and buiding construction. A certified asbestos building inspector, Chase is a graduate of Edinboro University, where he earned a bachelor’s degree in environmental studies.
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