December 2011 Business Magazine

Page 1

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXIV, NUMBER 12

2012 Economic Forecast:

DECEMBER 2011

Are Brighter Days Ahead? / Page 16

NEED HOSPITAL CARE ACCEPTED. Everywhere. Highmark Blue Cross Blue Shield is gladly accepted at hospitals everywhere.

HIGHMARKBCBS.COM

16

December 2011

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

How employers can ease the burden of COBRA administration.

James Kurre, Ph.D., associate professor of economics at Penn State Erie, The Behrend College and director of the Economic Research Institute of Erie (ERIE), responds to key questions regarding the economic outlook for 2012.

11 / Health Matters TAMMY CLAY

13 / Legal Brief

Why it’s important to understand the National Labor Relations Board’s recent actions and their implications on your business operations. DAN MILLER

15 / Financial Adviser

What you need to know about the estate, gift and generation-skipping tax exclusions. ROBERT B. McMUNIGLE, CPA, PFS, ABV

21 / Marketing News

Anti-social media: Why your marketing strategy can go terribly wrong if not done properly.

3 / Economic Spotlight

16 / 2012 Economic Forecast Area business and community leaders talk about the impact of the current economic climate on their operations as well as their expectations for the coming year.

29 / On the Hill Association State Government Representative Anna McCauslin explains the reasons behind the redistricting process and its potential influence on public policy in the Commonwealth.

7 38

SCOTT LEE

35 / Blue Ocean Strategy

How to motivate your staff in order to execute your company’s strategy for the future. ANGIE ANGUS

EVENTS >

33 / See photo coverage of the latest

Manufacturer & Business Association events.

DEPARTMENTS > 7 / Business Buzz 26 / HR Connection

30 / HR Q&A 36 / The Network 38 / People Buzz

Read the Business Magazine on the road! Now you can take the Business Magazine with you no matter where you go! Using your QR app, scan our code above to receive the current issue on your smartphone or mobile device. And for Association and Business Magazine updates, fan us on Facebook and follow us on Twitter! December 2011 > www.mbausa.org > 1

Strong Relationships. Strategic Results. t 100 years of Appalachian Basin energy experience t Multi-billion dollar oil and gas transactions in the Marcellus and Utica shales t Governmental affairs support to national energy developers t Largest mineral title practice group in the Appalachian Basin t 100 energy attorneys and 100 paraprofessionals Kentucky

Sharon O. Flanery Energy Team Leader

Texas

Ohio

Pennsylvania

West Virginia

WWW.STEPTOE-JOHNSON.COM THIS IS AN ADVERTISEMENT

SPOTLIGHT > by Karen Torres James Kurre, Ph.D. is an associate professor of economics at Penn State Erie, The Behrend College and the director of the Economic Research Institute of Erie (ERIE), which collects, analyzes, interprets and disseminates data, information, and forecasts for the area economy. Here, Dr. Kurre talks about the outlook for 2012, which he will present at the Manufacturer & Business Association’s Economic Forecast briefing on December 15 at the Association’s Conference Center in Erie.

It seems the jury is still out on whether our country will sink into another recession. How great of a risk is this? Double-dip recessions are rather rare in U.S. history. The one in the early 1980s is the key example, and it shows that it is possible. (In Erie, we didn’t have a double dip even then — we didn’t have the brief upturn that the rest of the nation experienced. We just kept heading down.) Technically, if we did head into another recession it wouldn’t be a double dip this time, it would be a whole new recession. Could it happen? Yes. Will it happen? It’s unclear, but I think it’s unlikely. We’re on an uptrend, although the recovery is much less “up” than we’d like. It’s going to take a while to get back to the level we were at before the recession. Some economists have suggested that the United States will experience more frequent recessions than it used to in the next five to 10 years. How likely is this to happen? I don’t see any reason to think we’ll have more frequent recessions, so long as Washington gets its act together. I think that a key driver of the current lackluster performance of the economy is the uncertainty that businesses feel currently. It’s hard to make a multimilliondollar investment in a new plant and equipment when you’re not sure of what tax rates will be in the near future, and if you’ll be required to face new health-care insurance mandates with higher costs. Since the Erie area hasn’t been hit as hard as the rest of the nation, should we expect to feel a more dramatic downturn soon? I’m optimistic on Erie’s future. This recession has been relatively mild locally — at least compared to the much more severe recessions we saw in the 1950s and in early 1980. This was the Great Recession for the nation as a whole, but it was “only” about average for us. Part of that has to do with the fact that we did not see the run-up in the housing market… It is also partly due to the fact that our industry mix has been changing over the years, and the eds and meds have become a bigger part of our story. ERIE’s recent work on brain drain and brain gain shows that we have been losing fewer of our college grads in recent years, and have actually been successful in attracting some students from other areas to stay here after graduation. This is crucial to Erie’s long-term success. An infusion of new talent with up-to-date education and skills sets the stage for innovation, new ideas, and new products. And any economy has to continually generate new ideas and new businesses to replace those that leave or die; it’s a part of the industrial life cycle. What sectors will continue to struggle the most? Why? Any business that does work that can be taught to a worker quickly will be under great pressure from competition from low-wage countries. If a job can be reduced to a rather short set of simple, repetitive instructions, it will probably be mechanized or outsourced. People in developing countries are used to much lower living standards than we have enjoyed in the United States, and are happy to work for much lower wages than most American workers. That means the products they produce will be cheaper for American consumers, and that’s good news. What current issues should we be keeping our eyes on when it comes to the growth, or lack thereof, of the economy in the coming year? The federal government’s budget is going to be a crucial element in the coming years. They’ve been borrowing huge amounts lately, and record low interest rates have made it seem like that’s not too much of a problem. And that is partially because the Federal Reserve has continued to pump money into the system. But if they continue with that practice, eventually we’re going to see inflation start occurring. And as we learned in the 1970s and early ‘80s, once inflation gets entrenched it’s very, very hard (and expensive) to get rid of it. The Fed seems confident that they will be able to cut money growth when it’s necessary, but that typically results in higher interest rates, which can choke off a recovery.

VOL. X XIV, NO. 12 DECEMBER 2011 Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor Managing Editor & Senior Writer

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

Communications Specialist

Jessica Crocker jcrocker@mbausa.org

Contributing Writers

Angie Angus Tammy Clay Scott Lee Robert B. McMunigle, CPA, PFS, ABV Dan Miller

Photography

iStockphoto.com Ron Stephens La Mirage Studio 814//835-1041

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: Area business and community leaders talk about the impact of the current economic climate on their operations and their expectations for 2012. For more information, see Page 16.

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.

December 2011 > www.mbausa.org > 3

Recently, First National Bank was identified among the Best U.S. Banks by Forbes.com and we are proud to

attribute these accolades to the success of our clients. Our strength enables us to accommodate your corporate banking needs.

Why do so many companies single us out?

Find out for yourself what makes First National Bank so special. We will coordinate an experienced corporate banking team that will consider comprehensive resources and apply innovative solutions including treasury management services, mezzanine financing, asset based lending and wealth management, to arrive at a package of services for your specific needs. Those are just a few of the many reasons why companies like yours single us out as their bank of choice. Find the trusted, dedicated relationship your company deserves, at First National Bank. To learn more visit fnb-online.com or call 866.362.4605.

www.fnb-online.com

SUMMIET OFFIC

NEW

NEW

EEK MILLCIRCE OFF

8840 Peach St. Erie • 814.866.8840

PA CORRYC, E I OFF

4202 W. Ridge Rd. Millcreek • 814.833.8840

38 E. Columbus Ave. Corry • 814.664.8840

We See Your Signs Everywhere

SM

What brand is well recognized by its dark blue and white logo with a bright nautical star in the middle? This familiar logo is popping up in yards and on businesses all over Erie County. Thanks to hard work, dedication and significant branding efforts, Marsha Marsh Real Estate Services has become one of the most respected and fastest growing real estate companies in the area. Marsha Marsh, the visionary for Marsha Marsh Real Estate Services truly lives and breathes real estate. One only needs to spend a few minutes with Marsha to feel her enthusiasm and the exuberant passion she has for the profession. As a female entrepreneur, Marsha attributes her success to honesty, enthusiasm, good character, a positive attitude and good listening skills. She is not only a successful real estate agent but she is also a successful businesswoman who is full of boundless energy. Marsha firmly believes that customer referrals have played a major role in the rapid success of Marsha Marsh Real Estate Services. “What better way to gain new business and positive advertising than by a referral from a happy and satisfied customer,” added Marsh. “In fact, we attribute over 88 percent of our business comes from referrals of past clients.”

Your trusted advisors in buying & selling real estate in Erie County.

With their Peach Street office at capacity, Marsha Marsh Real Estate Services recently opened two new offices; 4202 West Ridge Road in Millcreek and 38 East Columbus Avenue in Corry. Laban Marsh, agent, broker and owner explained that, “After three and a half years of unprecedented growth, the brokerage ran out of adequate space to support our growing roster of agents and the increasing volume of clients. Our new convenient locations will provide more than double the professional office space and will enable the entire Marsha Marsh Real Estate Services organization to better serve our valued clients through increased resources, greater technology, additional conference/meeting space and easy access.” Marsha Marsh Real Estate Services is proud to be recognized as a trusted advisor when it comes to buying or selling real estate in Erie, Warren, Venango and Crawford counties. When it’s time to buy or sell your next property, call Marsha Marsh Real Estate Services at a convenient location near you. A professional REALTOR® will be ready to help guide you along the real estate journey or visit www.marshamarsh.com where you will find friendly home search tools, helpful buyer and seller resources and community information.

Business Buzz ROAR ON THE SHORE® NAMED ERIE’S CHOICE Roar on the Shore® was named Erie’s Choice Community Festival for 2011 by Erie Times-News readers. The honor marks a first for the charitable bike rally, which, in 2011, drew more than 85,000 motorcycle enthusiasts to the shores of Lake Erie for three days of rides, bands and more, and, along with other fundraising events throughout the year, raised $250,000 for the construction of the Flight 93 National Memorial in Shanksville, Pennsylvania. The rally was created in 2007 for a greater purpose — to serve as a major fundraiser in the Erie, Pennsylvania region. Now, entering its sixth year in 2012, the event has quickly become one of the fastest-growing free bike rallies in the United States. For more information on the 2012 Roar on the Shore® bike rally, visit www.roarontheshore.com.

Roar on the Shore® draws thousands of bikers and bike enthusiasts to Erie, Pennsylvania each year. The 2012 rally is set 1for11/11/11 July 19, 204:42 and 21. GeneralContAd_Layout PM Page 1

for a

ANDERSON COACH & TRAVEL NAMED IMG OPERATOR OF THE YEAR Greenville, Pennsylvania-based Anderson Coach & Travel, which offers a wide variety of charter services, group vacation packages and individual tours, recently was named Operator of the Year by International Motor Coach Group (IMG). The honor recognizes Anderson’s operational excellence, safety record, best customer practices, community and industry involvement, and overall engagement with IMG. The company, founded in 1937, offers more than 750 tours to more than 150 destinations throughout the United States and Canada. For more information, visit www.goanderson.com.

PERRY CONSTRUCTION

Client: Mercyhurst College Project: The Center for Academic Engagement Architect: Buehler and Associates General Contractor: Perry Construction Group Scheduled Completion: August 2012

Interested in seeing more projects? Ask to receive our

General Contractors & Engineers

“Project Profiles”

Serving Northwest PA, Northeast Ohio and Chautauqua County NY

Phone: 814-459-8551 www.perryconst.com

Industrial • Healthcare • Educational • Commercial • Retail • Institutional 6 < www.mbausa.org < December 2011

DEPARTMENTS > Contact: Jessica Crocker

GE TRANSPORTATION TO ADD JOBS, INVEST IN ERIE PLANT Officials from GE Transportation, the world’s leading maker of rail, mining and transportation-related products, recently announced that the company plans to hire about 360 new employees and invest $136 million in manufacturing and facility improvements at its Lawrence Park Township headquarters. Almost 160 of those newly created positions are to meet rising demand for products and exports in the mining industry; the other 200 are expected to fill the positions of production workers taking early retirement, offered to eligible employees as part of their June 2011 union contract. The company also announced that it plans to build a 236,000-square-foot facility adjacent to its new locomotive plant in Fort Worth, Texas. GE is ex-

pected to invest more than $95 million at the new facility and launch production in mid-2012, as well as hire some 130 workers. “These latest investments in our U.S. facilities put GE Transportation in a position to shape the future of the transportation industry worldwide,� said Lorenzo Simonelli, president and CEO of GE Transportation. “We’re making significant investments in GE’s technology leadership, product innovation, and state-of-the art manufacturing operations to serve our customers worldwide.� For more information, visit www.getransportation.com. MERCYHURST COLLEGE RANKED IN TOP 50 Mercyhurst College has been named to U.S. News & World Report’s rankings of “America’s Best Colleges.� The Erie

institution, which cracked the top tier of the best regional universities five years ago, climbed to No. 49 among the 142 “top tier� colleges in its region on the magazine’s 2012 list, jumping 36 spots in the past three years. “We are again pleased to have the quality of a Mercyhurst education recognized by U.S. News & World Report in its ‘Best Colleges Guidebook,’� said Mercyhurst College President Tom Gamble, Ph.D., “While the annual rankings are only one gauge of a college’s reputation and small differences in ranking from one institution to another should not be overinterpreted, we see the acknowledgement as a testament to the hard work and devotion of so many members of our Mercyhurst family.� For more information, visit www.mercyhurst.edu.

Š8u€�b

8 ‡‘O8‡ }‘¾Â?€½8‡ ½}8½ uÂ€ĂˆbÂľ ˑ 8OOb¾¾ ½Â‘ ½}b Š‘¾½ ½bO}Â?‘‡‘u€O8‡‡Ë 8YĂˆ8Â?ObY O8²b¢ 3}b²b ½Â€ÂŠb 8Â?Y Y€¾½8Â?Ob 8²b Â?‘ ‡‘Â?ub² n8O½Â‘²¾ €Â? Â?²Â‘ĂˆÂ€Y€Â?u 8 O‘ŠÂ?‡b½b Y€8uÂ?‘¾€¾¢ 3}b²b ‡€nb 8‡½b²Â€Â?u Y€¾b8ÂľbÂľ ¾ÂO} 8Âľ O8Â?Ob² 8²b Yb½bO½bY ¾‘‘Â?b² 8Â?Y ½²b8½bY n8¾½b²¢ Š8u€Â?b 8 }‘¾Â?€½8‡ Ă‚Â?‡€†b 8Â?Ă‹ ‘½}b² €Â? ‘² ²bu€‘Â?¢ ‘² Â?b8²Â‡Ă‹ ˜sĂ? Ă‹b8²¾V +8€Â?½ 2€Â?ObÂ?½ }8Âľ FbbÂ? ½}8½ }‘¾Â?€½8‡¢ ‘O8‡‡Ë ‘ÉÂ?bYV ‡‘O8‡‡Ë uÂ‘Ăˆb²Â?bYV 8‡É8Ă‹Âľ ɀ½} ‡‘O8‡ €Â?½b²b¾½¾ 8½ }b8²½¢ Ă‚¾½ €Š8u€Â?b É}b²b Éb¯‡‡ Fb ½8†€Â?u }b8‡½} O8²b Â?bĂŠ½¢

4HOMAS -OORE Ă?Y8ÂŠÂľĂˆÂ€Â‡Â‡bV (8¢ Ă Ă?˜˜ -Â?Yb²u‘bÂľ 8YĂˆ8Â?ObY Â?²Â‘ObYĂ‚²b ½}8½ Yb½bO½¾ ‡ÂÂ?u O8Â?Ob² €Â? €½¾ b8²Â‡Â€b¾½ ¾½8ubÂľ

-EET 4HOMAS +O8Â? ɀ½} ˑ² ¾Š8²½ Â?}‘Â?b ‘² ĂˆÂ€ÂľÂ€½ +8€Â?½2€Â?ObÂ?½ b8‡½}¢O‘Šº 8Â?Ob²

December 2011 > www.mbausa.org > 7

YOUR CAREER TRACK HAS A

PASSING LANE. Three of them, actually. Gannon University’s College of Engineering and Business, offers Master of Science in Engineering Management (northwest Pennsylvania’s only interdisciplinary business/engineering graduate degree program), Master of Public Administration or Master of Business Administration degree programs. Whichever program you choose you’ll have the benefit of: t B TUVEFOU PSJFOUFE GBDVMUZ XJUI SFBM XPSME CVTJOFTT FYQFSJFODF NVDI MJLF your own t UIF DIPJDF PG POMJOF MFBSOJOH PS EZOBNJD JOTUSVDUJPO JO DMBTTFT PG GFXFS UIBO students on Gannon’s urban, Central Business District campus t B OFUXPSL PG NPSF UIBO BMVNOJ XPSMEXJEF JODMVEJOH $ MFWFM FYFDVUJWFT NPSF UIBO FOUSFQSFOFVSJBM PXOFS PQFSBUPST NPSF UIBO XJUI BEWBODFE EFHSFFT BOE NPSF UIBO UFBDIJOH JO DPMMFHFT BOE VOJWFSTJUJFT Now the question is: are you ready?

Earn your degree online or in the classroom

BEGINATGU.COM

Company 352),/( :LOOLDP ' 0RURVN\ '0' )$*' :HVW WK 6WUHHW (ULH 3$ 3KRQH :HEVLWH GUPRURVN\ FRP

William D. Morosky, DMD, FAGD

(PDLO PRURVN\GHQWDO#\DKRR FRP 2I¿FH +RXUV D P WR S P 0RQGD\ 7XHVGD\ DQG 7KXUVGD\ D P WR S P :HGQHVGD\ 3URIHVVLRQDO $I¿OLDWLRQV $FDGHP\ RI 6SRUWV 'HQWLVWU\ )HOORZ RI WKH $FDGHP\ RI *HQHUDO 'HQWLVWU\ $PHULFDQ 6RFLHW\ RI *HULDWULF 'HQWLVWU\ $PHULFDQ $FDGHP\ RI ,PSODQW 'HQWLVWU\ $PHULFDQ 'HQWDO $VVRFLDWLRQ $PHULFDQ $FDGHP\ RI &RVPHWLF 'HQWLVWU\

“We’ll keep your smile in tip-top shape”

WILLIAM D. MOROSKY, DMD, FAGD

³:KDW KHDOWK FDUH 3UHVLGHQW 2EDPD VKRXOG PDQGDWH LV DVVXULQJ HYHU\RQH KDV WKHLU WHHWK DQG JXPV FOHDQHG RQ D UHJXODU EDVLV ´ ² /RFDO FDUGLRORJLVW 7KH OLQN EHWZHHQ JRRG RUDO KHDOWK DQG LPSURYHG RYHUDOO KHDOWK KDV EHHQ ZHOO HVWDEOLVKHG 2UDO LQÀDP PDWLRQ DQG LQIHFWLRQ FLUFXODWHV WKURXJK WKH ERG\ DQG ZRUVHQV RWKHU LQÀDPPDWRU\ FRQGLWLRQV ,Q WKLV SDVW \HDU IRU LQVWDQFH :LOOLDP ' 0RURVN\ '0' )$*' KDV KDG WZR SDWLHQWV UHTXLULQJ OLIHVDYLQJ PHGLFDO SURFHGXUHV ± RQH D OLYHU WUDQVSODQW WKH RWKHU D FDUGLRYDVFXODU SURFHGXUH ± WKDW WKH UHVSHFWLYH KRVSLWDOV ZRXOG QRW SHUIRUP XQOHVV WKH SDWLHQWV ZHUH LQ JRRG GHQWDO KHDOWK 9HU\ VHULRXV VWXII 7KLV LV ZK\ 'U 0RURVN\¶V GHQWDO RI¿FH DSSURDFKHV SDWLHQWV¶ WUHDWPHQW RSWLRQV DV OLIH LPSURYH PHQWV WKURXJK GHQWLVWU\ QRW MXVW D EXQFK RI GHQWDO SURFHGXUHV :KHWK HU LW LV UHGXFLQJ V\VWHPLF LQÀDP PDWLRQ E\ LPSURYLQJ JXP KHDOWK RU LPSURYLQJ DSSHDUDQFHV E\ LPSURY LQJ VPLOHV 'U 0RURVN\¶V SDWLHQWV UHFHLYH LQGLYLGXDO GHQWDO VROXWLRQV EDVHG RQ WKH PRVW FXUUHQW SURYHQ GHQWDO PHGLFDO UHVHDUFK ([SHUWV LQ WKH 'HQWDO )LHOG 'U 0RURVN\ DFKLHYHG IHOORZVKLS VWDWXV LQ JHQHUDO GHQWLVWU\ DQG ZDV

3UDFWLFLQJ WKH DUW RI GHQWLVWU\ VLQFH 'U :LOOLDP 0RURVN\ '0' )$*' SURYLGHV WKH ¿QHVW TXDOLW\ GHQWDO FDUH DYDLODEOH

'U 0RURVN\ V RI¿FH LV HTXLSSHG ZLWK VRPH RI WKH PRVW WHFKQRORJLFDOO\ DGYDQFHG GHQWDO HTXLSPHQW DYDLODEOH 7KH GLJLWDO ; UD\ V\VWHP KHOSV PDNH WKH PRVW DFFXUDWH GLDJQRVLV ZKLOH UHGXFLQJ D SDWLHQW¶V H[SRVXUH WR UDGLDWLRQ E\ XS WR SHUFHQW

'U 0RURVN\ RIIHUV WKH OHDGLQJ VLQJOH WRRWK UHVWRUDWLRQ DYDLODEOH WRGD\ :LWK &(5(& KH SHUIRUPV WKH HQWLUH SURFH GXUH LQ MXVW D VLQJOH DSSRLQWPHQW IURP VWDUW WR ¿QLVK 1R LPSUHVVLRQV QR WHPSV ± MXVW EHDXWLIXO WRRWK FRORUHG UHVWRUDWLRQV LQ RQH YLVLW

7KH GHQWDO SUDFWLFH ORFDWHG DW :HVW WK 6WUHHW ZHOFRPHV SDWLHQWV RI DOO DJHV

UHFHQWO\ UHFRJQL]HG LQ D IRUPDO FHUH PRQ\ LQ 6DQ 'LHJR &DOLIRUQLD +H LV DPRQJ D VHOHFW JURXS RI OHVV WKDQ SHUFHQW RI 8 6 JHQHUDO GHQWLVWV ZKR KDYH DWWDLQHG WKLV DFDGHPLF KRQRU +H ZHOO VXUSDVVHV WKH 3HQQV\OYDQLD 6WDWH %RDUG UHTXLUHG PLQLPXP RI KRXUV SHU \HDU KDYLQJ DFFUXHG PRUH WKDQ KRXUV RI FRQWLQXLQJ HGXFD WLRQ SHU \HDU IURP WKH ³H[SHUWV LQ WKHLU GHQWDO ¿HOGV ´ :LWK WKLV EDFNJURXQG DQG ZLWK WKH XVH RI DGYDQFHG GLJLWDO ; UD\V ODVHU EHIRUH DQG DIWHU SKRWRV &$'&$0 ¿OOLQJV DQG FURZQV DQG D FDULQJ H[SHULHQFHG VWDII 'U 0RURVN\¶V SUDFWLFH LV DEOH WR IRFXV RQ SUHYHQ WLRQ DQG HDUO\ GHWHFWLRQ RI GHQWDO SDWKRORJ\ IROORZHG E\ FRQVHUYDWLYH DQG FRVPHWLF WUHDWPHQW UHVXOWV $ UHFXUULQJ SDWLHQW UHVSRQVH WR WKHLU FRVPHWLF LPSURYHPHQWV LV ³, ZLVK , KDG GRQH WKLV VRRQHU EHFDXVH LW ORRNV VR ZRQGHUIXO ´ 'U 0RURVN\¶V GHQWDO SDWLHQWV DUH DVVXUHG RI YDOXH LQ WKHLU GHQWDO FDUH 7KH\ XQGHUVWDQG KRZ KLV RI¿FH DUULYHV DW WKHLU OLIH LPSURYH PHQW VROXWLRQV 7UHDWPHQW RSWLRQ EHQH¿WV DV ZHOO DV FRVW RSWLRQV DUH H[SODLQHG DQG SDWLHQWV DSSUHFLDWH WKH ZK\ DQG KRZ RI WKHVH EHQH¿WV 'U 0RURVN\¶V RI¿FH PDNHV HYHU\ DWWHPSW WR PLQLPL]H WUHDWPHQW WLPH 7KHLU OLIH LPSURYHPHQW GHQWDO FDUH LV FRQVHUYDWLYH DQG FRVW HI¿FLHQW ,W LV ERWK KHDOWK\ DQG D VPDUW ZD\ WR GR EXVLQHVV December 2011 > www.mbausa.org > 9

:H EULQJ +,*+ (1(5*< WR WKH LQVXUDQFH DQG ULVN PDQDJHPHQW QHHGV RI \RXU RLO JDV UHODWHG HQWHUSULVH

´7KH %ORRPVWLQHVµ ŽŵŵĞƌĐŝĂů͕ /ŶĚƵƐƚƌŝĂů Θ /ŶƐƚŝƚƵƚŝŽŶĂů WƌŽƉĞƌƚLJ͕ >ŝĂďŝůŝƚLJ Θ tŽƌŬĞƌƐ͛ ŽŵƉĞŶƐĂƚŝŽŶ /ŶƐƵƌĂŶĐĞ ŐĞŶƚƐ /OR\G¶V /RQGRQ &RUUHVSRQGHQWV DQG &RUUHVSRQGHQW %URNHUV :RUOGZLGH ϭϮϯ tĞƐƚ ϵƚŚ ^ƚƌĞĞƚ ƌŝĞ͕ W ϭϲϱϬϭ ϴϭϰͲϰϱϮͲϯϮϬϬ &Ădž ϴϭϰͲϰϱϰͲϱϱϵϴ ǁǁǁ͘ŝŵĐĞƌŝĞ͘ĐŽŵ ĞͲŵĂŝů͗ ũŽŚŶ͘ďůŽŽŵƐƚŝŶĞΛŝŵĐĞƌŝĞ͘ĐŽŵ

Health Matters

EDITORIAL > by Tammy Clay

Easing the Burden of COBRA Administration Keeping current with health-care rules and regulations is always challenging for any employer. When a company has to deal with the management of a complicated health-care regulation such as COBRA, the problem becomes even more difficult. What is COBRA? The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose health benefits the right to continue coverage through their group health plan for a limited time period. This option is only available under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Challenges COBRA can be complex to administer. Employers need to be aware of deadlines and details that can make it difficult to be compliant with COBRA regulations. Because mistakes can be costly — in terms of fines, or in lost time, or both — it often makes sense to outsource the task to an expert. In many cases, that means looking for a third-party administrator of benefit programs. COBRA specialty administrators are experts in staying up-to-date on the regulations and in keeping an employer in compliance. What’s Required of Employers • Send notices to employees, former employees and their spouses and children • Calculate and collect premiums • Keep track of employees who are eligible and who are not • Maintain records of who received notices and when they were sent • Determine whether premiums are accurate and paid on time.

When It Makes Sense to Outsource Outsourcing COBRA administration can be looked on as a form of risk management. Because of the legal issues that surround proper COBRA administration, it’s essential that all aspects of the process are done correctly. Employers outsource COBRA administration in an effort to minimize exposure. An employer can determine if they need to outsource COBRA by asking themselves three questions: • Does my company have the time to administer COBRA correctly? • Is our company knowledgeable about the latest COBRA requirements? • Can our company afford the cost for the liability of noncompliance? If your answers to one or more of these questions is no, then it might make sense to look into outsourcing COBRA administration. Features to Look for in a COBRA Administrator • Monthly billing and collection services • Online credit and debit payment options • Flexible remittance options • The ability to interact with multiple carriers • User-friendly monthly activity reports • The ability to monitor and track. This includes the 60-day election period, the 45-day initial premium payment period, the ongoing 30day grace period and cessation of COBRA coverage. You should expect an administrator to provide user-friendly monthly activity reports that summarize monthly

billing and collection from COBRA participants. Offering an employer portal to view COBRA participants and activity in real-time, or even enter information, is also a feature that many COBRA administrators are now including in their menu of services. The Importance of Customer Service Because COBRA can be confusing, it helps to have a member services department that understands the benefits and is experienced in dealing with questions and other general inquiries. Being able to provide 24-hours-a-day, seven-days-a-week access to account information online and having a broad time frame available for participant calls is what would make the COBRA administration service well-rounded. For more information about handling COBRA administration, visit www.upmchealthplan.com. Tammy Clay is manager of COBRA Operations for UPMC Benefit Management Services, which 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 WorkPartners, UPMC for You, Askesis, Community Care, UPMC Dental Advantage, and E-Benefits.

December 2011 > www.mbausa.org > 11

Save Today. Save Today. Save Today. Save Tomorrow. Save Tomorrow. Save Tomorrow. Naturalgas gasisismore moreefficient efficientthan thanmost mostfuels. fuels.The Theprocess processofofproducing producing Natural Natural Natural gas is gas more is efficient more efficient than most than fuels. most fuels. The process The process of producing of producing electricitywastes wastesabout about70% 70%ofofthe theinitial initialraw rawenergy energyfound foundinincoal. coal.InInfact, fact,the the electricity electricity electricity wasteswastes about about 70% of70% the of initial the raw initial energy raw energy found found in coal.inIncoal. fact,Inthe fact, the generation,transmission, transmission,and anddistribution distributionofofelectricity electricityloses losesmore moreelectrical electricalenergy energy generation, generation, generation, transmission, transmission, and distribution and distribution of electricity of electricity loses more loses electrical more electrical energyenergy thanisisactually actuallyused usedbybyconsumers. consumers.Natural Naturalgas gastransmission transmissionfrom fromitsitssource sourcetoto thanthan isthan actually is actually used by used consumers. by consumers. NaturalNatural gas transmission gas transmission from its from source its source to to losesonly onlyabout about10% 10%ofofinitial initialenergy. energy. loses loses only losesabout only about 10% of10% initial of energy. initial energy. It’seasier easieron onthe theenvironment. environment.Upon Uponcombustion, combustion,natural naturalgas gasproduces produces43% 43%less less It’s It’s easier It’s easier on the on environment. the environment. Upon combustion, Upon combustion, natural natural gas produces gas produces 43% less 43% less 2 2 than coal and 28% less than home heating oil. CO coal and 28% less than home heating oil. 2 CO than 2 CO than CO coal thanand coal 28% andless 28% than lesshome than home heating heating oil. oil. It’smore moreabundant abundantand andaccessible accessiblethan thanwas wasknown knownuntil untilrecently. recently.Discoveries Discoveries It’s It’s more It’s abundant more abundant and accessible and accessible than was thanknown was known until recently. until recently. Discoveries Discoveries ofenormous enormousU.S. U.S. gasreserves reservesand andsafe, safe,cost-efficient cost-efficientmethods methodstototap tapit itpromise promisetoto of gas of enormous of enormous U.S. gas U.S. reserves gas reserves and safe, andcost-efficient safe, cost-efficient methods methods to tap to it promise tap it promise to to greatlyreduce reduceour ourreliance relianceononforeign foreignoil. oil.InInfact, fact, theUnited UnitedStates Statesisisnow nowthe thelargest largest greatly the greatlygreatly reducereduce our reliance our reliance on foreign on foreign oil. In oil. fact,Inthe fact, United the United States States is nowisthe now largest the largest producerofofnatural naturalgas gasininthe theworld. world. producer producer producer of natural of natural gas in gas the in world. the world.

Allofofthese thesebenefits benefitsmake makenatural naturalgas gasthe theclear clearchoice choicetotobest bestfuel fuelour ourfuture. future. All ofAll All these of these benefits benefits make make natural natural gas the gas clear the choice clear choice to best tofuel bestour fuel future. our future.

Legal Brief

EDITORIAL > by Dan Miller

The NLRB: Administrative Activism Has Implications for All Employers Generally speaking, most non-union employers have had little exposure to the National Labor Relations Board (“NLRB”). However, due to the appointment of pro-union members to the NLRB by President Obama and four recent aggressive actions taken by the Board, the NLRB has new relevance for all employers. The NLRB is a government agency that is charged with the obligation of enforcing the National Labor Relations Act (“Act”). The Act basically contains two major protections for employees. First, the Act protects employees who engage in a “protected activity,” such as bringing complaints or grievances to the employer regarding terms and conditions of employment. Second, the Act gives employees the right to organize and bargain collectively with an employer through a designated representative. Most employers whose employees are not represented by a union have had little or no concern with regard to NLRB activities. However, the new NLRB has taken four significant steps that should cause all employers to pay close attention. Social Media Postings and Unionization First, in a series of decisions, the NLRB has taken a very aggressive stance toward social media regulation in the workplace. In addition to addressing the ability of employers to maintain social media policies in their places of business, the NLRB has regulated an employer’s ability to take disciplinary action against employees for social media postings. These NLRB decisions have prompted employers to carefully scrutinize their social media policies and practices to avoid being subjected to an unfair labor practice charge. Second, the NLRB has published proposed amendments to the rules and regulations governing how union elections are conducted. When the

Obama administration and prounion activists were unable to obtain expedited elections under the Employee Free Choice Act, the NLRB began efforts to streamline its own regulations to provide for expedited elections through the regulatory process. The NLRB has proposed to shorten the election and hearing procedures so as to limit an employer’s ability to raise legitimate objections about which employees properly belong in an appropriate bargaining unit and are eligible to vote. The NLRB’s proposed rules also would require employers to provide names, home addresses, phone numbers, and e-mail addresses of eligible voters. Third, the NLRB has issued a decision in Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, which permits smaller units of distinct groups of employees to unionize. Before the Specialty Healthcare decision, the appropriate bargaining unit for a manufacturing facility would typically consist of all production and maintenance employees. The Specialty Healthcare decision essentially allows smaller groups of employees, such as a job classification or department, to unionize. Allowing such small bargaining units makes it easier for a union to organize small segments of an employer’s work force. The employer also could be forced to bargain with one or more small groups of employees. Fourth, the NLRB has promulgated a rule requiring employers to post notice of an employee's rights to organize, engage in concerted activity, and bargain collectively under the National Labor Relations Act. The effective date of the posting requirement has been delayed until January 31, 2012. For the Record Taken together, these four actions by the NLRB demonstrate that the Obama

administration and its appointees to the agency intend and hope to tip the scales in favor of unions to make union organizing easier. As a result, all employers need to gain a greater understanding of the implications of these actions and consider a strategy to respond to the NLRB’s aggressive stance.

Fast Facts • The Obama NLRB is taking extreme regulatory and judicial actions to make unionization easier. • Employers should design a strategy to respond to the NLRB’s activism. Should you have any questions concerning the contents of this article, contact Dan Miller at 814/870-7708, or any of the other members of the MacDonald Illig Labor and Employment Practice Group. Dan Miller is a partner with the law firm of MacDonald, Illig, Jones & Britton LLP. He is co-chair of the firm's Labor & Employment practice group and represents management in collective bargaining, labor relations, employee relations, employment discrimination, unemployment compensation, and wage-and-hour cases.

December 2011 > www.mbausa.org > 13

EDITORIAL > by Robert B. (Mac) McMunigle, CPA, PFS, ABV

Financial Adviser A Once in a Lifetime Opportunity? On December 17, 2010, President Obama signed the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” into law. This legislation temporarily ended uncertainty regarding the federal estate tax, which had previously been repealed for 2010, but was scheduled to return in 2011 with an exclusion of only $1 million. The increase in the federal estate tax exclusion to $5 million for 2011 and 2012 has received much publicity. The exclusion is the amount of otherwise taxable assets that can be transferred to one’s heirs before tax is assessed. The law also added a new “portability” concept, which allows any exclusion unused at the death of the first spouse to be available to the surviving spouse. This makes it easier for a couple to maximize their potential combined exclusion, up to $10 million. Gift Tax and GenerationSkipping Tax Possibly of even more benefit is the corresponding increase in the gift tax and generation-skipping tax (“GST”) exclusions to $5 million. Under prior law, the gift tax exclusion was capped at $1 million, even though the estate tax exclusion was as high as $3.5 million. Thus, the ability to transfer assets without tax liability to one’s heirs during his or her lifetime was limited to $1 million (in addition to the annual exclusions that many donors take advantage of, currently remaining at $13,000 per year per recipient). During 2011 and 2012, an individual can gift up to $5 million of assets to their heirs without any tax cost (a couple can transfer up to $10 million). The increase in the GST can compound this benefit.

The GST was enacted to prevent wealthy individuals from transferring their assets to subsequent generations, such as grandchildren, rather than to their children. Otherwise, if their children already had sizable estates, they could “skip” that generation in an attempt to avoid a second estate tax levy on the assets as part of the child’s estate. The GST imposes a tax, in addition to any estate or gift tax due, on applicable transfers that attempt to skip a generation. The current increase in the GST exclusion allows a grandparent to transfer up to $5 million to the benefit of the grandchildren and avoid this additional assessment. Current gifts to a properly structured trust can appreciate greatly before their ultimate transfer to subsequent generations, with all of this appreciation avoiding GST and estate taxes. However, this large exclusion is currently only available through 2012. Lifetime gifts (in excess of annual exclusions) are included in a decedent’s gross estate. This could result in a portion of a tax-free $5-million gift being subsequently subject to estate tax (if the unified exclusion is reduced below the current level). So what is the benefit of a substantial lifetime gift? All subsequent appreciation and income attributable to the property are removed from the estate. Also, the GST exemption, once established, remains effective. Thus, the gifted property will not be subject to the GST later, even if the GST exclusion is subsequently reduced. Additionally, the gifts can be leveraged using devices that take advantage of current low interest rates and/or provide valuation discounts.

The valuation discounts reflect the lack of marketability and lack of control that can be accomplished through proper structuring of the gift. Other benefits of current gifts include potential state inheritance tax savings as well as providing the recipient current use of the gifted assets. Worth Noting Absent further legislation, all of these provisions are only applicable to 2011 and 2012. The estate, gift and GST exclusions are all scheduled to revert back to $1 million in 2013 (the GST exemption likely will be somewhat higher due to inflation adjustment provisions). Given the current political environment, it appears unlikely that an extension of the 2011 and 2012 benefits will be addressed until after next year’s election, if at all. For more information on estate, gift and generation-skipping tax exclusions, contact Robert McMunigle at McGill, Power, Bell & Associates, LLP at 814/724-5890 or rmcmunigle@mpbcpa.com. Robert B. (Mac) McMunigle, CPA, PFS, ABV, is a partner with the certified public accounting and financial services firm of McGill, Power, Bell & Associates, LLP. He has been with the firm for more than 25 years. McMunigle specializes in business valuation, litigation support, tax accounting and planning, estate planning, and business succession planning. He also is certified as a personal financial specialist (PFS) and offers individuals personal financial planning.

December 2011 > www.mbausa.org > 15

Foreca E

The world may not end in 2012 according to popular doomsday theories but this doesn’t mean that we’re out of the woods quite yet. Many economists say growth will slow to a sluggish 2-percent rate over the next year. Meanwhile, consumer confidence is expected to remain low while unemployment is expected to hover at or near its current national level — a dismally high 9 percent. On the bright side, according to James Kurre, Ph.D., director of the Economic Research Institute of Erie (ERIE), “We’re on an uptrend, although the recovery is much less ‘up’ than we’d like. It’s going to take a while to get back to the level we were at before the recession.” Recent results from the Manufacturer & Business Association’s Economic Snapshot Survey found that, in the first quarter, the majority of employers (53.6 percent) expected business in the next three months to pick up. In the second quarter, the majority (45.6 percent) expected no change. By the third quarter, a small majority (41 percent) expected business to improve. “I see generally positive numbers in the third-quarter survey, in terms of firms expecting business to pick up, more companies with order backlogs increasing than decreasing, more companies expecting business to pick up than decline, and more expecting to hire than fire,” notes Kurre. “But the tone of the third-quarter survey seems a little less positive than the previous ones… That suggests that we will have a continuing increase in the local economy, but perhaps not an acceleration in the near future, unfortunately.”

Manufacturing

Manufacturing has been one of the few bright spots in the economy since the end of the recession, generating more than 300,000 new jobs since December 2009, according to the National Association of Manufacturers. Strong export growth in 2010 and the first half of 2011 helped increase revenues and create jobs. However, the slowing global economy coupled with a lack of confidence in domestic and global economic policy has caused many firms to place greater focus on matters they can control. “We’re (manufacturers) holding up the rest of the economy,” explains Andree Phillips, president and CEO of Radiant Steel Products Company, a custom precision fabricating and finishing facility based in Williamsport, Pennsylvania. “But what we’re seeing is more demand for shorter runs because people are just being cautious out there in terms of ordering any kind of product because nobody wants any inventory, because they are insecure about the economy.” 16 < www.mbausa.org < December 2011

Andree Phillips

C

O

N

O

Phillips says her own business, which employs 16 full-time workers and between three and 10 temporary staff, hasn’t suffered as a result of the economic downturn because of its strong niche. In the past 35 years, the company’s best year was in 2008, and 2009 also was very good. “2010 was at its usual level and 2011 appears to be more typical than 2008 and 2009,” explains Phillips. “I believe our business will remain steady for 2012.” In fact, in the central Pennsylvania region in which Radiant Steel operates, many employers have reason to be upbeat. According to figures released by the U.S. Bureau of Economic Analysis, Williamsport became the seventh fastest-growing metropolitan area in the country in 2010, largely driven by the development of the Marcellus Shale rock formation, a major source of natural gas. “What’s happening here is more companies moving in, more startup businesses, more activity, more hotel room occupancies, more restaurants opening, plans for a conference center and another one or two hotels,” Phillips says. “I’m surrounded by energy and enthusiasm and a positive outlook here in little Williamsport, Pennsylvania.” On the national level, however, Phillips isn’t so optimistic. “The uncertainty that exists for today’s small businesses is due to a number of factors not the least of which is the expansion of overarching government regulations,” says the self-described free market advocate. “It appears that OSHA, DEP, EPA, NLRB, to name a few, are hell-bent on making it more difficult to operate a business in the USA. It is my impression that the folks creating these everincreasing hoops for us to jump through have never operated a business, let alone met a payroll. I am also of the opinion that they never studied economics.”

Financial Sector

When asked how the banking business/ industry is being impacted by the economy, Marlene Mosco, regional president of PNC Financial Services, which has 840 employees at 50 branch locations in northwest Pennsylvania, states it would be easy to be less than optimistic. “Lawmakers cannot seem to agree on the best course of action to resolve critical Marlene Mosco fiscal issues. International debt concerns dominate our headlines. Regulations have increased. Interest rates remain low, and unemployment remains stubbornly high,” she

M

ast 2012

M

I

C

notes. “That said, this is not 2008. Most U.S. banks today have strong capital and liquidity and improved profitability. They are well positioned to serve customers with lending and deposit services. And that’s key to overall economic recovery.”

three years,” she says. “Overall it is more difficult for individuals to qualify for mortgages. Good credit is essential for a purchase. Good credit and job security always should have been a pre-requisite for any borrowing, and we have returned to that principle.”

PNC believes growth in the current economy begins with understanding customer trends. “The forecast for customer use of branches and the call center is roughly flat while electronic transactions continue to grow. Check writing continues to decline, and next year paper checks are expected to account for only 17 percent of non-cash transactions. As technology has become more dominant, we have developed innovative products and services designed to meet the changes in customer preferences.”

Health Care

On a positive note, "we believe 2012 will be another good year for PNC,” adds Mosco. “We are assuming low interest rates and full-year GDP growth, albeit at low levels. We expect that our net interest income will remain stable. We are looking for continued client growth, which should drive higher fee income to offset the incremental impact of regulatory changes. Even in a tepid economy, our risk profile should enable us to see a modest decline in credit costs. And given our continuous improvement initiative, our expenses should remain flat even as our franchise expands.”

Real Estate

Economists are divided on whether the worst would be over for the U.S. housing market by the end of the year or if it will take more time to reach a floor. Yet, while the outlook for real estate prices in 2012 is not great, it’s not all bad news either. Experts say the downturn has slowed somewhat, indicating a bit of momentum gaining, and possibly pushing the price of real estate upwards. Sue Sutto, owner and founder of Sue Sutto Realtors in Erie — an area that has not experienced the housing bubble burst like many major metropolitan areas — is hopeful that the country is through the worst of the housing crises. “Certainly low interest rates are encouraging,” she says, “and that allows a buyer to comfortably afford a larger home.”

Health care has long been a bright spot in the U.S. economy due to the increasing demand for both services and workers. However, as Mary L. Eckert, president and CEO of Millcreek Community Hospital (MCH), points out, diminishing reimbursements for Medicare, Medicaid and private insurance patients are negatively impacting the healthcare industry, while the number of uninsured is growing.

Mary L. Eckert

Despite these challenges, she says, Millcreek Community Hospital has experienced increased patient volumes. MCH attributes its more positive experience to the hospital’s expansion in services and facilities to meet growing demands. For example, MCH expanded the region’s only hospital-based Transitional Care Unit in June from 14 to 24 beds. At the same time, MCH expanded its Acute Care for the Elderly (ACE) unit from eight to 14 beds and enlarged the Detox unit — the only such hospital in-patient unit currently in the Erie area. The hospital also is caring for a growing number of patients in the TCU and ACE units, as in its 62-bed Behavioral Health Care units. As part of these growing care needs, MCH, which employs 425 professionals, has increased its number of active and associate medical staff physicians — now at 165 — and its patient bed capacity to 218 on its campus. This number includes 144 acute care beds in the hospital and 74 long-term care beds at its skilled nursing facility Millcreek Manor. It also added diagnostic >

Economic Snapshot Sue Sutto

Sutto and her staff of 12 professionals — comprised of employees and independent contractors — spend much more time completing transactions than ever before. More information is required and the firm spends a lot of time assisting buyers, sellers and lenders. “Many think that the decline of the housing industry was the beginning of the economic issues that we have all faced in the last

According to responses from the Manufacturer & Business Association’s Third-Quarter Economic Snapshot Survey, employers expected their businesses in the next three months to: • Pick up 41 percent • Slow down 20.5 percent • No change 38.5 percent

December 2011 > www.mbausa.org > 17

equipment in the Outpatient Imaging Center, located in the LECOM Medical Fitness & Wellness Center, as well as Erie’s newest MRI, located in the hospital. To offset rising costs, MCH has implemented an energy-efficiency plan and worked with vendors to reduce costs of supplies. The hospital also has been increasingly diligent in holding the line on expense budgets. All these efforts, according to Eckert, have enabled MCH to be positively positioned for the future. “Because we’ve experienced continuous growth during these challenging years for health care,” she says, “we remain optimistic about our role in helping people maintain their best possible total health over their lifetimes.”

Education

Just as the graying of America continues to generate demand for health care, the U.S. Bureau of Labor Statistics forecasts the education sector to be one of the fastestgrowing industries through 2018, and northwest Pennsylvania is well positioned to benefit from that. Donald Birx, chancellor at Penn State Erie, The Behrend College, which employs 750 faculty and staff, says that the college of 4,700 students continues to see Donald Birx strong enrollments among all categories of students — in-state, out-of-state, and international. “At the same time,” Birx notes, “we are certainly seeing more students having trouble paying for their education, and we’ve been working closely with these students to identify additional funding sources and provide supplemental support to close the gap for them. A key element of the college’s strategic plan going forward is also the development of more flexible course scheduling and delivery (more online courses, for example), recognizing the reality that a growing number of students are finding it necessary to work while attending school.” Meanwhile, state support for public higher education continues to decline as a result of the stagnant economy. “The majority of our operating funds come from tuition, but as a land grant institution with a mission of supporting the citizens and communities of the Commonwealth, Penn State knows it’s essential that we keep future tuition increases as low as possible,” notes Birx. “In the years ahead, Penn State, like other public educational institutions, will need to rely more and more on private funding for investment resources. Fortunately, the university continues to see strong philanthropic support.” According to Birx, for the second time in the past three years, Behrend’s faculty and staff, along with their counterparts across the university, have forgone salary increases. The college maintains reserve funds, and has leveraged these to meet certain financial commitments. Yet Birx, a strong proponent of continuous improvement practices, such as Kaizen, says that these challenging times have presented opportunities. Behrend's leadership, faculty and staff are looking at strategies to build on the college's strengths and partnership opportunities with its academic colleagues in the region, while introducing greater efficiencies in its operation that situate it well for the future. 18 < www.mbausa.org < December 2011

Penn State Behrend, according to Birx, also is engaged in a number of activities focused on addressing unmet and emerging needs of students and the community. Among them: The development of interdisciplinary and theme-based academic offerings that will give students an extra edge in the global economy; the creation of a Center for Lifelong Learning to enhance service to the growing nontraditional student population; and the expansion of an open-lab environment in which business and industry, faculty, and students innovate as teams. “Now, more than ever,” says Birx, “we want to renew our commitment to the people of our region.”

Future Workers

Mathew Pundt, principal/director of Central Tech in Erie, which has more than 18 different career and technical programs, understands the importance of the partnership between educational institutions and employers in 2012 and the years ahead. With the uncertainty surrounding the current economy, it is harder to place students in jobs for its senior co-operative education programs. Graduates who go directly into the work force are finding jobs in their fields, but it also has been more competitive.

Mathew Pundt

Central Tech, for example, is trying to respond to the needs of employers, who are looking for a strong work ethic. The school recently added the YES™ (Your Employability Skills) program that teaches students the soft skills and responsibilities of holding a job. In addition, Central Tech graduates are leaving school with industry and OSHA certifications in order to produce quality trained students who meet the needs of local businesses. “We are working with local employers to identify their needs and develop training programs to ensure our students are ready for employment or college,” says Pundt. “Superintendent Jay Badams is strongly behind career and technical education and has charged our school with trying to offer more career and technical education for students at Collegiate Academy, East and Strong Vincent high schools. We hope to be able to offer two-year programs to a larger number of City of Erie youth within the next year.” Pundt says the school district has more than 125 local business and industry advisers, but would like to add more owners of local industry to its advisory committees. The district also is looking to develop partnerships with local colleges and businesses to develop a better-trained work force locally. In addition, Pundt says, “We need to encourage our students in the younger grades to explore careers and opportunities, so they can take school seriously and set goals for their future. With the federal and state government cutting back on education, we need to lobby our local businesses even harder to invest in our youth and show them the opportunities they offer for a rewarding career.” It's possibilities like these, as well as the mostly positive tone of area employers, which may help to make the business outlook seem a little brighter in the coming year. To learn more about the 2012 economic forecast, visit www.mbausa.org or the Economic Research Institute of Erie at www.erie.psu.edu/eriedata.

ZMIGDMU2]BAN 2011

Marquette Again Exceeds Capital Standards 2010 CAPITAL STRENGTH (Tier One Leverage Capital)

13.70%*

5% Marquette Savings Bank

FDIC regulatory minimum requirement for well-capitalized institutions

Capital position is the key measure of a bank’s financial strength. At 13.7%, Marquette Savings Bank’s is among the best. At a time when many banks are falling short in maintaining their capital requirement or relying on government aid, it’s reassuring to know Erie and Crawford counties’ true, hometown bank which exceeds capital strength standards also continues to set the standard for true hometown service — Marquette Savings Bank.

For more information, contact a Marquette Business Banker today.

Dave Slomski Vice President of Business Banking (814) 455-4481

James Jackson Business Banker (814) 455-4481

Louis Natalie Chief Credit Officer (814) 455-4481

Eugene Cirka Business Banker/ Crawford County (814) 337-7929

The Hometown Bank with the Hometown Touch * Based on audited 2010 financial statements

<RX·UH LQ WKH EXVLQHVV RI OHQGLQJ PRQH\ :H·UH KHUH WR OHQG \RX D KDQG 7KH 4XLQQ /DZ )LUP NQRZV EDQNLQJ LQVLGH DQG RXW $V RQH RI WKH UHJLRQ·V OHDGLQJ &UHGLWRUV· 5LJKWV SUDFWLFHV ZH ZRUN GLUHFWO\ ZLWK ÀQDQFLDO LQVWLWXWLRQV³DV ZHOO DV XWLOLWLHV DQG KRVSLWDOV³WR SURYLGH D IXOO UDQJH RI KLJK TXDOLW\ WLPHO\ DQG IDLUO\ SULFHG VHUYLFHV ,Q IDFW RXU &UHGLWRUV· 5LJKWV *URXS RSHUDWHV WKH ODUJHVW FROOHFWLRQ SUDFWLFH LQ WKH WUL VWDWH DUHD 0RUHRYHU RXU H[SHULHQFHG EDQNUXSWF\ WHDP VHUYHV D EURDG VSHFWUXP RI FOLHQWV LQFOXGLQJ VHFXUHG OHQGHUV XQVHFXUHG FUHGLWRUV ODUJH FRPSOH[ &KDSWHU GHEWRUV LQ UHRUJDQL]DWLRQ FDVHV DQG LQGLYLGXDO GHEWRUV 1R PDWWHU ZKDW \RXU QHHGV PD\ EH³QRZ RU LQ WKH IXWXUH³ ZH·UH KHUH ZKHQ \RX QHHG XV WKH PRVW 7R OHDUQ PRUH DERXW RXU FRPSUHKHQVLYH &UHGLWRUV· 5LJKWV SUDFWLFH VHUYLFHV FRQWDFW XV WRGD\

/DZUHQFH & %ROOD

0LFKDHO 6 -DQ -DQLQ

$UWKXU ' 0DUWLQXFFL 0LFKDHO 3 .UXV]HZVNL

1LFKRODV 5 3DJOLDUL

9DOHULH .XQW]

: *UDQGYLHZ %OYG (ULH 3$ _ 3KRQH _ )D[ _ ZZZ TXLQQÀUP FRP

Marketing News

EDITORIAL > by Scott Lee

The Onslaught of ‘Anti-Social’ Media – What’s Best for Your Business in 2012? Im (sic) up and moving… and energized. 4 people like this. Really? I’m amazed that one person, let alone four people, cared that someone is up and energized. What is this world coming to? Maybe I’m too old, maybe I’m out of touch, but am I the only one who looks at “social” media with a jaded eye? In 2011 there was a massive rush to implement social media in business. It was no longer good enough to have a dynamic website. You had to have a Facebook page, slap a QR code on everything, you had to be LinkedIn, and you had to tweet your every movement — as if we were all waiting on pins and needles to place an order with you based on whether the Starbucks barista got your order right this morning. Enough already. Am I saying that social media is worthless for business? No, but I am saying that implementing it poorly is worse than not implementing it at all. A few months back I wrote an article about the two most important questions in business: Who is my customer? And, what does my customer want? Before implementing social media, you still need to answer those questions, but I want you to answer two more: 1) Who is using social media? And, 2) How does my customer buy? Who is Using Social Media? Try as I might, I haven’t been able to clearly figure this out. Demographics vary greatly among social media, and

they change rapidly. Consider this: In 2010, approximately 20 percent of cellphones were smartphones. By 2013, it’s predicted that 80 percent of cellphones will be smartphones. This is a compelling statistic, but the more important question is, what percentage of smartphone owners actually use their phone to surf the Web or purchase products? The takeaway? Do some research, dig deeper, try to determine if the demographic profile of social media users matches your customer profile. How Does my Customer Buy? Listen, it’s not rocket science. Twitter, Facebook and other social media are instant gratification vehicles. Great if you’re selling business to consumer items like food, clothing or impulse buy items. Not so great if you’re selling business-to-business durable goods. Most business people simply do not use these vehicles to purchase fixed-price, large ticket items. Look closely at how your customer purchases your products and determine if social media is a viable sales avenue for your business in the future. Pros of Social Media • Popularity/usage increasing rapidly • Communication of the future • Opens up global markets instantly • Technology improving daily Cons of Social Media • Expensive to implement and maintain properly • Threats from bad user posts • User reluctance to accept advertising intrusion • Constant maintenance and updating required

• Measurement of performance difficult Before you social media junkies get up in arms and say I’m full of hooey, relax. I’m merely stating that before you implement social media, carefully weigh the pros and cons, thoughtfully consider which media to use, make sure your customer is part of the intended audience, and, as always, create relevance in your message. Above all else, don’t do it half way. The Internet kiss of death is to become stale, and word can spread like lightning. Make sure you commit ample time, money and personnel to keep your message fresh. Lastly, don’t let this stuff become your God. Never forget the importance of a smile, a handshake and truly personal customer service. For more information on how to maximize your marketing efforts, contact Scott Lee at Thomas Lee Printing & Mailing, Inc. at 814/8333233 or scott@thomasleeprinting.com.

Scott Lee is the president of Thomas Lee Printing & Mailing, Inc., a regional company specializing in data management, graphic design, offset printing, direct mail, statement processing and marketing consulting.

December 2011 > www.mbausa.org > 21

ARE STANDARDS ARE GOLD STANDARDS ON WISHLIST? LIST? ON YOUR YOURWISH The holidays are a magical time of silver and gold. If you have gold standards The The Theholidays holidays holidaysare are areaaamagical magical magicaltime time timeof of ofsilver silver silverand and andgold. gold. gold.IfIfIfyou you youhave have havegold gold goldstandards standards standards and could use a little magic, you need Schaffner, Knight, Minnaugh & Company, and and andcould could coulduse use useaaalittle little littlemagic, magic, magic,you you youneed need needSchaffner, Schaffner, Schaffner,Knight, Knight, Knight,Minnaugh Minnaugh Minnaugh&&&Company, Company, Company, P.C. working for you. P.C. P.C. P.C.working working workingfor for foryou. you. you. If your holiday wish list includes working with accounting professionals who IfIfIfyour your yourholiday holiday holidaywish wish wishlist list listincludes includes includesworking working workingwith with withaccounting accounting accountingprofessionals professionals professionalswho who who research your industry to thoroughly understand your challenges, and provide research research researchyour your yourindustry industry industryto to tothoroughly thoroughly thoroughlyunderstand understand understandyour your yourchallenges, challenges, challenges,and and andprovide provide provide you the best practices to solve your business needs, theholidays holidays will be you you youwith with with withthe the thebest best bestpractices practices practicesto to tosolve solve solveyour your yourbusiness business businessneeds, needs, needs,the the the holidays holidays will will will be be be magical for you with Schaffner, Knight, Minnaugh Company, P.C. We will magical magical magicalfor for foryou you youwith with withSchaffner, Schaffner, Schaffner,Knight, Knight, Knight,Minnaugh Minnaugh Minnaugh&&& &Company, Company, Company,P.C. P.C. P.C. We We We will will will provide you with gold standard performance. provide provide provideyou you youwith with withgold gold goldstandard standard standardperformance. performance. performance. This season, think beyond “Silver and Gold.” Fill your stocking with This This Thisholiday holiday holiday holidayseason, season, season,think think thinkbeyond beyond beyond“Silver “Silver “Silverand and andGold.” Gold.” Gold.”Fill Fill Fillyour your yourstocking stocking stocking with with with only Standard Performance. only only onlyGold Gold Gold GoldStandard Standard StandardPerformance. Performance. Performance.

Certified Public Accountants Certified Certified Certified Public Public Public Accountants Accountants Accountants

Schaffner, Knight, Minnaugh Company, P.C.......... Schaffner, Schaffner,Knight, Knight, Knight,Minnaugh Minnaugh Minnaugh&&&Company, Company, Company,P.C. P.C. World Service for World Clients. World WorldClass Class ClassService Service Servicefor forWorld WorldClass Class ClassClients. Clients. Clients.

Check Check Checkout out outour our ourNEW NEW NEWWebsite! Website! Website! Check out our NEW Website!

www.skmco.com www.skmco.com www.skmco.com www.skmco.com Certified Certified CertifiedPublic Public PublicAccountants Accountants Accountants Certified Public Accountants

Offices: Offices: Offices: Offices:

Erie, Erie, Erie,PA PA PA Jamestown, Jamestown, Jamestown,NY NY NY Dubois, Dubois, Dubois,PA PA PA Erie, PA Jamestown, NY Dubois, PA 1001 1001 1001 State State State Street, Street, Street, Suite Suite Suite 1300 1300 1300 500 500 500 Pine Pine Pine Street, Street, Street, Suite Suite Suite 14 14 14 351 351 351 Aviation Aviation Aviation Way Way Way

1001 State Street,16501 Suite 500 Pine Street, Suite 14 Reynoldsville, 351 Aviation Way Erie, Erie, Erie, Pennsylvania Pennsylvania Pennsylvania 16501 165011300 Jamestown, Jamestown, Jamestown, NY NY NY 14701 14701 14701 Reynoldsville, Reynoldsville, PA PA PA 15851 15851 15851 Erie, Pennsylvania 16501 Jamestown, NY 14701 814-375-2700 Reynoldsville, PA 15851 814-454-1997 814-454-1997 814-454-1997 716-483-0071 716-483-0071 716-483-0071 814-375-2700 814-375-2700 814-454-1997 716-483-0071 814-375-2700

TheThe The McGladrey McGladrey McGladrey Alliance Alliance Alliance is ais premier isa premier a premier affiaffi liation affi liation liation ofofindependent ofindependent independent accounting accounting accounting and and and consulting consulting consulting firms. firms. firms. TheThe The McGladrey McGladrey McGladrey Alliance Alliance Alliance member member member firms firms firms maintain maintain maintain their their their name, name, name, autonomy autonomy autonomy and and and independence independence independence and and and areareresponsible areresponsible responsible forfortheir fortheir their own own own client client client feefeearrangements, feearrangements, arrangements, delivery delivery delivery ofofservices ofservices services and and and maintenance maintenance maintenance ofofclient ofclient client relationships. relationships. relationships. TheThe The McGladrey McGladrey McGladrey Alliance Alliance Alliance is ais business isa business a business ofofRSM ofRSM RSM McGladrey, McGladrey, McGladrey, Inc., Inc., Inc., a leading a leading a leading professional professional professional services services services firm firm fiproviding rmproviding providing taxtaxand taxand and consulting consulting consulting services. services. services. McGladrey McGladrey McGladrey is the is isthethe brand brand brand under under under which which which RSM RSM RSM McGladrey, McGladrey, McGladrey, Inc.Inc. Inc. and and and McGladrey McGladrey McGladrey & &Pullen, &Pullen, Pullen, LLPLLP LLP serve serve serve clients’ clients’ clients’ business business business needs. needs. needs. McGladrey, McGladrey, McGladrey, thethethe McGladrey McGladrey McGladrey The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client logo logo logo and and and thethethe McGladrey McGladrey McGladrey Alliance Alliance Alliance signatures signatures signatures areareused areused used under under under license license license bybyRSM byRSM RSM McGladrey, McGladrey, McGladrey, Inc.Inc. Inc. and and and McGladrey McGladrey McGladrey & &Pullen, &Pullen, Pullen, LLP. LLP. LLP. relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

Junior Achievement of Western Pennsylvania

Nonprofit Junior Achievement of Western Pennsylvania PROFILE $W -XQLRU $FKLHYHPHQW -$ \RXQJ SHRSOH DUH JLYHQ WKH NQRZOHGJH DQG VNLOOV WKH\ QHHG WR RZQ WKHLU HFRQRPLF VXFFHVV SODQ IRU WKHLU IXWXUH DQG PDNH VPDUW DFDGHPLF DQG HFRQRPLF FKRLFHV

1RUWKZHVW 5HJLRQ 2I¿FH -RUGDQ 5RDG %XUNH &HQWHU (ULH 3$ 3KRQH :HEVLWH ZZZ MDHULH RUJ ([HFXWLYH 'LUHFWRU *DLO :KLWQH\ JZKLWQH\#MDZHVWHUQSD RUJ

-$¶V FRUSRUDWH DQG FRPPXQLW\ YROXQWHHUV GHOLYHU UHOHYDQW KDQGV RQ H[SHULHQFHV WKDW JLYH VWXGHQWV IURP NLQGHUJDUWHQ WKURXJK KLJK VFKRRO NQRZOHGJH DQG VNLOOV LQ ¿QDQFLDO OLWHUDF\ ZRUN UHDGLQHVV DQG HQWUHSUHQHXUVKLS -$ SURJUDPV HPSRZHU VWXGHQWV WR PDNH D FRQQHFWLRQ EHWZHHQ ZKDW WKH\ OHDUQ LQ VFKRRO DQG KRZ LW FDQ EH DSSOLHG LQ WKH UHDO ZRUOG ± HQKDQFLQJ WKH UHOHYDQFH RI WKHLU FODVVURRP OHDUQLQJ DQG LQFUHDVLQJ WKHLU XQGHUVWDQGLQJ RI WKH YDOXH RI VWD\LQJ LQ VFKRRO

'LG <RX .QRZ" ‡ VWXGHQWV LQ QRUWKZHVW 3HQQV\O YDQLD SDUWLFLSDWHG LQ -XQLRU $FKLHYH PHQW LQ ‡ EXVLQHVVPHQ DQG ZRPHQ YROXQWHHUHG ‡ FODVVURRPV UHFHLYHG WKH SURJUDP ‡ 3XEOLF SDURFKLDO DQG SULYDWH VFKRROV SDUWLFLSDWHG ‡ ,Q VFKRRO DIWHUVFKRRO DQG VXPPHU SURJUDPV DUH LQFOXGHG ‡ -XQLRU $FKLHYHPHQW LV D SDUWQHU RI 1HZVSDSHU LQ (GXFDWLRQ )LQDQFLDO /LWHUDF\ ‡ 6XSSRUWHG E\ ORFDO FRUSRUDWLRQV EXVL QHVVHV LQGLYLGXDOV DQG IRXQGDWLRQV ‡ (OLJLEOH IRU (GXFDWLRQDO ,PSURYHPHQW 7D[ &UHGLWV (,7&

(GXFDWLRQ 3URJUDP 0DQDJHU -DQ /HRQDUGL MOHRQDUGL#MDZHVWHUQSD RUJ 1RUWKZHVW 5HJLRQ 2I¿FH VHUYHV (ULH &UDZIRUG 0HUFHU DQG 9HQDQJR FRXQWLHV -XQLRU $FKLHYHPHQW YROXQWHHU GHOLYHUHG . SURJUDPV IRVWHU ZRUN UHDGLQHVV HQWUHSUHQHXUVKLS DQG ¿QDQFLDO OLWHUDF\ VNLOOV WR LQVSLUH NLGV WR GUHDP ELJ DQG UHDFK WKHLU SRWHQWLDO

-XQLRU $FKLHYHPHQW LPSDFWV PLOOLRQ 8 6 VWXGHQWV LQ PRUH WKDQ FODVVURRPV LQFOXGLQJ QHDUO\ LQ QRUWK ZHVWHUQ 3HQQV\OYDQLD

December 2011 > www.mbausa.org > 23

Company PROFILE American Turned Products’ Technology

American Turned Products

Rises with the Automotive Industry

&RUSRUDWH +HDGTXDUWHUV .OLHU 'ULYH )DLUYLHZ 3$ (ULH )DFLOLW\ :DJHU 5RDG (ULH 3$ 3KRQH )D[ :HEVLWH ZZZ DWSWHDP FRP )RXQGHG

7KH 8 6 DXWRPRWLYH VHFWRU LV FRQWLQXLQJ WR WKULYH ZLWK D DQQXDO HVWLPDWH RI PRUH WKDQ PLOOLRQ LQ OLJKW YHKLFOH VDOHV DQG $PHULFDQ 7XUQHG 3URGXFWV $73 LV SRVLWLRQHG ULJKW LQ WKH KHDUW RI WKDW JURZWK $PHULFDQ 7XUQHG 3URGXFWV¶ FXWWLQJ HGJH WHFKQRORJ\ LV DGYDQFLQJ WKH ZD\ WKH DXWRPRWLYH LQGXVWU\ GHVLJQV V\VWHPV IRU IXHO HFRQRP\ IXHO DOWHUQDWLYHV VDIHW\ DQG FRPIRUW ³:H DUH D FRQWUDFW PDQXIDFWXUHU VR ZH DUH FRQWLQXRXVO\ ORRNLQJ IRU WHFKQRORJ\ WR LPSURYH RXU SURFHVVHV ZKLFK DOORZV IRU PRUH ÀH[LELOLW\ VSHHG DQG FRVW FRPSHWLWLYH QHVV ´ VDLG $73 &(2 % 6FRWW (LJKP\ ³2XU ODWHVW WHFKQRORJ\ DGGLWLRQ LV DQ ,WDOLDQ PDGH URWDU\ WUDQVIHU PDFKLQLQJ FHQWHU 7KHUH LV QR RWKHU W\SH RI PDFKLQH TXLWH OLNH WKLV LQ RXU DUHD DQG ZH DUH WDNLQJ IXOO DGYDQWDJH RI WKH PDFKLQH¶V FDSDELOLWLHV ´ ³$W $73 LI ZH DUH QRW VWD\LQJ ÀH[LEOH DQG DKHDG RI WKH FXUYH WKHQ ZH FDQ¶W EH VXF FHVVIXO ´ DGGHG (LJKP\ ³2XU VXFFHVV LV GH¿QHG E\ PD[LPL]LQJ SURGXFWLYLW\ ZKLOH PDLQWDLQLQJ KLJK VWDQGDUGV RI TXDOLW\ DQG FXVWRPHU VHUYLFH XQPDWFKHG LQ RXU LQGXVWU\ ´

$PHULFDQ 7XUQHG 3URGXFWV LV DQ RUJDQL]DWLRQ EDVHG RQ DQ XQ\LHOGLQJ GHGLFDWLRQ WR KLJK HQG SUHFLVLRQ PDFKLQLQJ VHU YLFHV 7KH FRPSDQ\ KDV WZR SURGXFWLRQ IDFLOLWLHV ZLWK PRUH WKDQ VTXDUH IHHW RI PDQXIDFWXULQJ VSDFH WKDW KRXVH PRUH WKDQ PHWDOZRUNLQJ PDFKLQHV 6KRZQ KHUH LV $73¶V FRUSRUDWH KHDGTXDUWHUV LQ )DLUYLHZ 3HQQV\OYDQLD

$73 HPEUDFHV LQGXVWU\ DGYDQFHV DQG VXEVH TXHQWO\ PDNHV WKHP D SDUW RI WKH FRQWUDFW PDFKLQLQJ SURFHVV 0RVW UHFHQWO\ WKH FRPSDQ\ DFTXLUHG WKLV QHZ VWDWH RI WKH DUW URWDU\ WUDQVIHU PDFKLQLQJ FHQWHU

December 2011 > www.mbausa.org > 25

HR Connection WORKER SATISFACTION FALLS TO NEW LOW, SURVEY FINDS Employees are less satisfied and less motivated to excel at their company, but aren’t looking for new jobs, according to a new nationwide survey by Minneapolis-based Modern Survey. The study showed that 70 percent of employees are “disengaged or under engaged” at their job, the highest level since 2007, when the first survey began. The survey of 700 employees nationwide found 66 percent took pride in their company, down from 73 percent a year ago. Only 41 percent said they would recommend their company, down from 49 percent. A record low of 34 percent saw a promising future at their company, down from 48 percent. However, only 20.5 percent said they’re looking for a new job — a per-

centage which is consistent across nearly all demographics, including job level, pay basis and company size.

annoying. Other grievances included loud mobile phone ringtones and colleagues eating foul-smelling food.

Modern Survey Senior Consultant Bruce Campbell said communication can boost confidence especially in a weak economy. “Even if the news isn’t particularly good, employees tend to respond well if senior leaders are open and honest about the state of the business,” he noted.

The report also took account of the most irritating non-colleague related annoyances. At 68 percent, the most popular response was slow IT systems.

IMPROVE PRODUCTIVITY BY ADDRESSING PET PEEVES, RESEARCHER SUGGESTS A recent survey by Samsung Electronics highlights the traits that office workers find most irritating in their colleagues and why employers should take note. Of the 1,500 people surveyed, 34 percent cited loud talkers as their petpeeve, and 27 percent found workers leaving the printer tray empty most

Helen Wright, marketing and communications manager at global research and management company the Great Place to Work Institute, believes employers should listen to their employees’ frustrations in order to ensure a top-down approach to communication, which can result in more productive staff. “If there is trust in the workplace, it is more likely that employees will feel more supported, motivated and committed. They are more likely to take pride in what they do, enjoy working with their colleagues and ultimately enjoy their jobs,” she said.

DRIVEN BY RESULTS

Attorneys at the Knox firm are working to achieve results for landowners and businesses in our region who seek to benefit from Marcellus Shale activity. Our attorneys help landowners with royalty agreements, title matters, and other issues that arise out of oil and gas leasing. In addition, we assist landowners with estate planning strategies that allow them to preserve assets and leave charitable legacies for generations to come.

Erie, PA

Jamestown, NY

26 < www.mbausa.org < December 2011

We also assist closely held companies with business formation and planning, contract negotiations, real estate matters, employment issues, and litigation. In fact, we were recently ranked in the first tier, Pittsburgh region, by U.S. News - Best Lawyers “Best Law Firms“ for commercial litigation and representation of closely held companies and family businesses.

North East, PA

814-459-2800

www.kmgslaw.com

DEPARTMENTS > Contact: Stacey Bruce

Managing Change in the Workplace Starts With a Few Simple Strategies We know that companies that change are the ones that succeed. While leadership might be the driver of change, it is the staff that will do the heavy lifting. It is in your best interest to follow the rules below to ensure a successful transition: Tell them why. Emphasize the smart business reasons for the change and talk about how it will ultimately benefit both them and the company. Be careful not to get too excited, though. Over the top, rah-rah speeches will lead to mistrust. Be honest about timelines, extra work needed and any potential difficulties that might pop up. Get input. Hold meetings and solicit ideas, suggestions and concerns. Holding closed-door meetings and then announcing your great plan will cause resentment and make the employees feel like their opinions don’t matter.

Remember, they are in the trenches daily and probably have a lot of great ideas that could enhance your project. Give them time. There will be those who will resist and take a while to get on board. Understand that the reason behind this might be fear — fear they will fail, be left behind or lose their status in the organization. Veteran employees, in particular, can be your biggest resistors since they might sense they have the most to lose. Be patient with all. Have meetings with those who you sense are reluctant. Hold them accountable, but be careful you don’t lose them in the process. Change is necessary for growth. By involving your staff in the process from the start, you can reduce the stumbling blocks that might inhibit your progress.

With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area. For more information, please contact me at 814/833-3200, 800/815-2660 or dmonaghan@mbausa. org. I also encourage you to visit the Association’s website, www.mbausa.org, to learn more about our upcoming offerings.

Dan Monaghan is the director of Training at the Manufacturer & Business Association.

),1',1* 62/87,216 %(<21' 7+( 2%9,286 ! *URXS +HDOWK

! /LIH ,QVXUDQFH

! 3D\UROO 6HUYLFHV

! &2%5$

! ,QGLYLGXDO +HDOWK

! 'LVDELOLW\

! +5$ $GPLQLVWUDWLRQ

! 0LQL &2%5$

! 0HGLFDUH &RXQVHOLQJ

! /RQJ 7HUP &DUH

! )6$ $GPLQLVWUDWLRQ

! :5$3 6XPPDU\ 3ODQ

! 'HQWDO

! )LQDQFLDO 6HUYLFHV

! +HDOWK 5HIRUP 8SGDWHV 'HVFULSWLRQV

! ! ! 'DYHYLF %HQHILW &RQVXOWDQWV ,QF SURYLGHV VHUYLFH WR RYHU EXVLQHVVHVÂą ERWK ODUJH DQG VPDOO LQ RXU VXUURXQGLQJ FRXQWLHV DQG VWDWHV

$V RQH RI WKH UHJLRQÂśV OHDGLQJ SURYLGHUV RI JURXS DQG LQGLYLGXDO KHDOWK FDUH FRYHUDJH HPSOR\HH EHQHILWV ILQDQFLDO DQG SHQVLRQ SODQQLQJ ZH NQRZ KRZ DQG ZKHUH WR ILQG VROXWLRQV WKDW OLH EH\RQG WKH REYLRXV

%(1(),7 &2168/7$176 ,1& 3/($6( &$// 25 9,6,7

::: '$9(9,& &20 December 2011 > www.mbausa.org > 27

OntheHill

DEPARTMENTS > Contact: Lori Joint

Redistricting: The Reasons for Redrawing State and Federal Legislative Lines Anna McCauslin is the state government relations representative for the Manufacturer & Business Association in Harrisburg. Contact her at 717/525-7213 or amccauslin@mbausa.org.

Pennsylvania, like every other state in the Union, is currently in the middle of a redistricting process — redrawing legislative boundaries based on population growth. It’s a process that may sound complex and tedious, but in reality has the potential for major political implications, from the quality of our representation to the policies that government enacts. Here we’ll explain the reasons behind redistricting and identify the key players in the process, which could ultimately impact public policy in the Commonwealth. Federal Redistricting Article 1, Section 2 of the U.S. Constitution states, “Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers … The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct.” Federal law now dictates that the U.S. Census Bureau takes a record of every person so that the 435 Congressional seats will be apportioned equally, with every state having at least one federal representative and two senators — which are not affected by the Census and do not change based on population. According to the 2010 Census, Pennsylvania’s population rose by 3.4 percent, far less than that of other states. As a result, Pennsylvania will lose one congressional seat — resulting in the state’s district maps being redrawn to 18 districts instead of the current 19. The state with the greatest population increase was Nevada, which had 35-percent growth. Nine states, mostly in the middle belt of the country, saw a population boom between 15 percent and 25 percent. Michigan was the only state with a population loss. The boundaries of Congressional seats are redrawn every 10 years, following the Census, by legislative action in the state — a bill is drafted, voted on by both chambers of the General Assembly, and then signed into law by the governor. That law historically has been referred to each chamber’s state government committee. For example, the current chair of the Pennsylvania Senate State Government Committee is Senator Charles McIlhinney (R-10) and the Democratic chair is Senator Anthony Williams (D-8). The current chair of the House State Government Committee is Representative Daryl Metcalfe (R-12), while Democratic chair is Representative

Babette Josephs (D-182). There is no legal deadline for the redistricting process. While the Constitution determined that House members should be apportioned among the states with no more than 30,000 constituents each, the current number of 435 was capped in 1911. Each Congressperson represents an average of 709,760 constituents. Pennsylvania Legislative Reapportionment The Pennsylvania Constitution dictates that the 50 Senate and 203 House districts be reapportioned every 10 years. Based on the 2010 Census, southwestern Pennsylvania had the biggest population decline and will lose one Senate seat and three House seats. Southcentral Pennsylvania has seen the largest population increase and will gain seats from those lost in the southwest. Redistricting state legislative seats requires action by the Legislative Reapportionment Commission. The Commission is a five-member body consisting of the House and Senate Majority and Minority leaders, and a “nonpartisan” private citizen who serves as chair (currently retired Superior Court Judge Stephen McEwen of Delaware County). The Commission is given a 90-day map-drawing phase, followed by a mandatory review process to allow for citizen input and potential revisions. In November, the Commission released the preliminarily district lines. Retiring Representative John Evans’ (R-Erie) district was moved to Berks County because of population shifts. His district will be split largely between Representative Brad Roae (R-Crawford) and Representative Michele Brooks, a Republican whose current district spans Crawford, Mercer and Lawrence counties. The public comment period ended November 30 and now there is a 30-day period where legal actions could be taken. The new lines, which historically have not changed once the Commission releases the map, will take effect by the end of February. That means a new representative and/or senator could start serving residents by March. The General Assembly has established a website for information and updates about Pennsylvania’s redistricting process, including an interactive map where you can see both the 2001 and preliminary 2011 lines, at www.redistricting. state.pa.us. December 2011 > www.mbausa.org > 29

LEGAL Q&A MY EMPLOYEES WORK SATURDAYS AND SUNDAYS AS PART OF THEIR REGULAR SCHEDULE. AM I REQUIRED TO PAY THEM EXTRA FOR WORKING THE WEEKEND? No. Extra pay for working weekends (or nights) is a matter of agreement between the employer and the employee. Neither federal nor state law requires extra pay for weekend or night work. However, remember that non-exempt employees must be paid not less than time and one-half the employee’s regular rate for time worked over 40 hours in a workweek. I HAVE AN EMPLOYEE WHO IS PAID TWO DIFFERENT RATES WITHIN ANY GIVEN WORKWEEK DUE TO THEIR JOBS WITHIN THE COMPANY. HOW DO I DETER-

30 < www.mbausa.org < December 2011

MINE THEIR REGULAR RATE OF PAY FOR OVERTIME PURPOSES? For employees working at two or more rates during a single workweek for two or more different types of work, the regular rate of pay for that workweek is computed by taking the weighted average of such rates. The earnings for all rates for the week are added together, and this total is then divided by the total number of hours worked for the week at all jobs. SEVERAL OF MY EMPLOYEES HAVE ASKED IF THEY CAN WAIVE THEIR RIGHT TO OVERTIME AND RECEIVE COMPENSATORY TIME INSTEAD. CAN I ALLOW THIS? No. It is illegal for private employers to use compensatory time, but some managers have an informal practice of allowing it anyways. Even if your

employees would rather take compensatory time rather than be paid overtime, it is illegal. HAVE A LEGAL QUESTION? GET ANSWERS! Association members have unlimited access to our labor and employment law attorneys and HR generalists on a broad range of workplacerelated issues, including: hiring and firing practices; company policies; compensation and benefits; labor and employment law; contractual agreements; workers’ compensation; union-related issues; unemployment claims; employee handbook policies; OSHA compliance; sexual harassment; Family Medical Leave Act; Americans with Disabilities Act; and COBRA. For more information, please call 814/833-3200 or 800/815-2660.

DEPARTMENTS > Contact: Tammy Lamary

Work Overtime to Ensure that Your Unauthorized Employees Do Not “No unauthorized overtime permitted.” This is a policy found in most employment handbooks, and one that is arguably easy to understand. However, what happens if your supervisors do not understand it and you find yourself faced with a wage-hour lawsuit that alleges those supervisors instructed non-exempt employees to work off the clock if they did not finish their job during “regular” hours? Regardless of whether there is any truth behind this claim, these matters usually involve a lot of time and money to defend. Although there is nothing that you can do to stop employees from falsely claiming they were encouraged or instructed to work “off the clock,” you can reduce the risks. Your first step should be to ensure the company’s policy on recording all hours worked and overtime work is clear and that it

correctly and clearly communicates the company's position to all employees, including supervisors. Make sure your supervisors understand that all nonexempt employees are to record and be paid for all hours (authorized or not). As for the employees who failed to follow your policy of “no unauthorized overtime permitted,” you may treat such actions as a disciplinary matter — the same as you would any other policy violation. Keep in mind that employees are becoming more aware of these timekeeping issues and requirements. To encourage employees to keep their own personal time records, the U.S. Department of Labor, Wage and Hour Division released a timesheet document and created an “app” that employees can easily download and use. As a result, the risk of a dispute over work hours and overtime could

significantly increase for an employer failing to keep accurate records. Due to the possible consequences for noncompliance, it is well worth the time and effort for employers to take a few precautionary steps. For more information about overtime policies, please contact the Association’s Legal Services Division at 814/833-3200, 800/8152660 or email me at tlamary@mbausa.org.

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

´(ULH·V ([FOXVLYH 'HDOHU RI 6+$53 &RSLHUV DQG 6XSSOLHVµ

December 2011 > www.mbausa.org > 31

MacDonald Illig. Six metropolitan first-tier practice group rankings in US News’ Best Law Firms 2011-2012 : s %NVIRONMENTAL ,AW s (EALTH #ARE ,AW s 0ERSONAL )NJURY ,ITIGATION $EFENDANTS s 0ROJECT &INANCE ,AW s 0UBLIC &INANCE ,AW s 4RUSTS %STATES ,AW

MacDonald Illig. Longevity and Leadership.

100 State Street s 3UITE s %RIE 0! s MacDonaldIllig.com s

Events

Blue Ocean Strategy Center

To learn more about upcoming events, visit www.mbausa.org.

Jennifer Stefano, director of Labor and Energy Policy for Americans for Prosperity, joins Representative Darryl Metcalfe, Tony Theis from the National Federation of Independent Business and Simon Campbell, president of StopTeacherStrikes, to discuss right-to-work legislation at a recent MBA Government Affairs luncheon in Erie.

Mike Batchelor, president of the Erie Community Foundation, talks about Erie Vitals Signs, a new initiative by the Foundation and various local partners to pinpoint and address priority community issues, during a recent Association Eggs ‘n’ Issues briefing.

U.S. Representative Tom Marino of Lycoming County, R-10th District, addresses his expectations for fulfilling the GOP’s “Pledge to America,” and other legislative issues, during a legislative luncheon held on behalf of the MBA Central Pennsylvania Division in Williamsport.

December 2011 > www.mbausa.org > 33

Among the highest rated health plans in the nation.

Again. Quality matters.

For seven consecutive years, HealthAmerica has ranked among the nation’s top health plans according to the National Committee for Quality Assurance (NCQA).† We are in the top 10 percent of all nationally ranked plans.* Our Medicare plan ranks 24 out of 341 Medicare plans evaluated nationwide, ranking second in the state.

HealthAmerica has been providing health benefits to Pennsylvanians for more than 36 years and offers coverage for businesses, Medicare Advantage and Medical Assistance beneficiaries, and individuals without group plans. Visit healthamerica.cvty.com or call 1-800-255-4281.

Employers - click on “Get a Quote for Your Business” to find out more about our health benefit solutions.

HMO and POS Medicare HMO *Current commercial health plan ranking is 30 (NCQA’s Health Insurance Plan Rankings 2011-12 – Private). (NCQA’s Health Insurance Plan Rankings 2011-12 – Medicare).

EDITORIAL > by Angie Angus

Motivating Employees to Execute Strategy 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. During the execution of Blue Ocean Strategy, there are four organizational hurdles that need to be overcome: cognitive, resource, motivational and political. In previous articles, we addressed the cognitive and resource hurdles, but here we’ll focus on how to gain the full support of your employees to execute a successful strategy. To overcome the motivational hurdle, most companies assume that they must use a top-down initiative to convince the mass of employees to believe in and execute the new strategy. Yet there are faster and less expensive ways to get employee support for the new initiative. Instead of focusing on the masses, concentrate efforts in small areas that carry disproportionate influence. Three factors can achieve this result: kingpins, fishbowl management and atomization. Kingpins There are people within every company who are well liked, respected and have influence over others. Instead of spreading your resources too thin by trying to influence everyone, you only need to convince the kingpins that there is a need for a new strategy. Others will be influenced through them. For example, during the 1990s, the New York Police Department (NYPD), under the leadership of then-Commissioner Bill Bratton, had to overcome a huge motivational hurdle. Influencing 36,000 employees could take an enormous amount of time, money and effort. Instead, Bratton focused on the 76 precinct heads, the “kingpins,” who, in turn, could motivate personnel within their own precincts. Fishbowl Management Fishbowl management requires placing such kingpins where their performance is visible and reported regularly. This occurs with both their managers and peers. Those that are performing well will be recognized and those that are not doing well will be equally noticed. This type of management discourages inaction

and complacency largely because it is based on transparency and fair process. Fair process, according to Blue Ocean Strategy, means “engaging all the affected people in the process, explaining to them the basis of decisions and the reasons people will be promoted or side-stepped in the future, and setting clear expectations of what that means to employees’ performance.” In the case of the NYPD, Commissioner Bratton held biweekly meetings with all the precinct leaders and many high-ranking officers. The crime statistics for each precinct were included in a visual presentation that also included the descriptions of how precincts were dealing with various crime issues. Not only did this make each precinct accountable, but it also allowed them to share ideas and successful practices. These meetings were so successful in raising performance expectations that many precinct leaders began holding similar meetings within their own units. Atomization The idea of breaking down the process into achievable smaller segments — atomization — is imperative, because it makes the overall goal seem more attainable. When Commissioner Bratton was given the task of turning one of the most dangerous cities in the country into one of the safest, the job might have seemed impossible. Also, consider the fact that there are 36,000 employees to motivate to achieve this goal. By making each person responsible for just a small part, no one person was overwhelmed. The officers on the street just had to make their block safer. The precinct commanders just needed to make their precinct safer. Borough heads had concrete goals based on the records of each of their precincts. By giving each person their small part of the strategy to implement, it spread the execution of the strategy away from top management and became the responsibility of all NYPD employees. Conversely, by focusing efforts in small areas that carry disproportionate influence within your company, you may be able to execute a new strategy more quickly, effectively and with fewer costs incurred. Next month: Overcoming the final hurdle — the political hurdle. 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. December 2011 > www.mbausa.org > 35

The Network

2978 West 12th Street Erie, PA 16505 814/833-6510 R.A. NELSON & ASSOCIATES, INC. Industrial & Institutional Security Services Erie’s only locally owned uniformed security guard & patrol service – SERVING ERIE SINCE 1973 LICENSED & INSURED

814/452-3475 20 West 24th Street Erie, PA 16502

36 < www.mbausa.org < December 2011

FISHER SECURITY

Commercial Lending

We’re lending to local businesses like yours, from equipment loans to lines of credit.

12671 Route 19 South

20 offices to serve you in Erie County Northwest Direct: 1-877-672-5678 www.northwestsavingsbank.com Member FDIC

Complete Excavating Service www.showmanexcavating.com

(814) 796-2903 (814) 796-4002 Fax

P.O. Box 646 Waterford, PA 16441

December 2011 > www.mbausa.org > 37

People Buzz ERIE DENTIST RECEIVES 2011 FELLOWSHIP AWARD The Academy of General Dentistry (AGD), a professional association of more than 37,000 general dentists, recently presented its 2011 Fellowship Award to William Dale Hammerlee, DMD, FAGD, of Erie, Pennsylvania, during the AGD 2011 Annual Meeting & Exhibits in San Diego. The Fellowship Award is presented to dentists who seek to provide the highest quality of dental care by remaining current in their profession. To accomplish this goal, Dr. Hammerlee completed 500 hours of continuing dental education, passed a comprehensive exam and fulfilled three years of continuous membership in the AGD. Dr. Hammerlee is a graduate of the University of Pittsburgh School of Dental Medicine and currently practices dentistry

in Erie. He also is a member of the American Dental Association, the Pennsylvania Dental Association, and the Erie County Dental Association. BIANCHI HONDA TECHNICIAN EARNS NATIONAL AWARD Erie-based car dealer Bianchi Honda recently announced that Joseph Londo has been selected as the nation’s Honda/ ASE Master Automobile Technician of the Year based on his outstanding performance on ASE (Automotive Service Excellence) tests. Honda and ASE planned to honor him during an awards ceremony in Charlotte, North Carolina. Londo was selected based on a search of all technicians that work at Honda dealerships who took ASE tests in the last year. To achieve this prestigious award, he was required by Honda to be Master Certified,

have taken one or more tests in the automobile test series in any administration in the preceding 12 months, and have the highest average passing score across all automobile series tests taken in the last five years. SEGEL & SON METAL RECYCLING INTRODUCES NEW CHIEF The Board of Directors of Segel & Son, Inc. in Warren, Pennsylvania has appointed Eric C. Hern as president and chief executive officer. In addition to serving as the company’s controller, Hern has more than 20 years of experience in running business units for a variety of manufacturing, retail and finance companies. He has a bachelor’s degree from Allegheny College and both an MBA and MPA from Gannon University. Segel & Son, Inc. is the oldest and largest locally owned scrap metal recycling and

+RZ PXFK FDQ \RX VDYH ZLWK WKH QHZ 0%$

WORKERS’ COMPENSATION 3URJUDP"

Call Doug Loesel or Joe Parlak and find out.

814-833-5433 www.LSinsure.com

38 < www.mbausa.org < December 2011

EDITORIAL > Contact: Karen Torres

new steel sales company in the region for both residential and corporate customers. It has facilities in Warren, Pennsylvania and Olean, New York and serves more than 15 counties in southwestern New York and northwestern Pennsylvania. THREE MACDONALD ILLIG ATTORNEYS NAMED TO BEST LAWYERS LIST James D. Cullen, Mark J. Shaw and Craig Murphey, partners at the Eriebased law firm of MacDonald, Illig, Jones & Britton LLP, have been selected by their peers for inclusion in The Best Lawyers in America® 2012. Cullen, senior partner and former chairman of the firm’s Trusts & Estates Practice Group, is recognized for his work in the area of trusts and estates planning and administration. He is among a distinguished group of attorneys who have

been listed in Best Lawyers for 15 years or more. Shaw, senior partner and chairman of the Environmental Law Practice Group at MacDonald Illig, is recognized for his work in that area of the law including environmental litigation, compliance and permitting matters. He also handles complex commercial litigation cases in the federal and state courts. Murphey, senior partner and chairman of MacDonald Illig's Insurance Practice Group, is recognized for his work in the area of personal injury litigation. He is a civil litigator who concentrates his practice in the areas of insurance coverage, insured defense, arbitrations, trials and appeals.

FINANCIAL ADVISER EARNS CONTINUING EDUCATION APPROVAL The Williamsport, Pennsylvania-based financial services firm Janney Montgomery Scott LLC recently announced that T. Michael Hall, first vice president/ Wealth Management, has been approved by the Supreme Court of Pennsylvania Continuing Legal Education Board to offer Pennsylvania Continuing Legal Education (CLE) credits. The rules for CLE were adopted to ensure that lawyers admitted to practice in Pennsylvania maintain the requisite knowledge and skills necessary to fulfill their professional responsibilities. Hall also is approved by the Pennsylvania Board of Accountancy to teach Continuing Professional Education to accountants and CPAs. He has nearly 20 years of experience in the industry. >

The Erie Federal Credit Union is the only credit union in Erie that offers business loans! Kristi Bailey,

Business Solutions to save you time & money:

(814) 825-2436 Ext. 1035 KBailey@eriefcu.org

• Short & Long Term Loans • Lines of Credit • Equipment Financing • Business Checking & Savings • Business MasterCard®

www.eriefcu.org

*Loans subject to credit approval. Membership eligibility required.

Director of Business Development & Services

• Debit Business Card • Merchant Services • Merchant Indirect Loans • SBA Loans • Employee Programs & More

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government

NCUA

National Credit Union Administration, a U.S. Government Agency

December 2011 > www.mbausa.org > 39

People Buzz INTERNAL MEDICINE SPECIALIST OPENS PRACTICE IN MEADVILLE Archana Anand, MD, has joined the Meadville Medical Center’s active medical/dental staff and opened an office, Meadville Medical Associates, in the Liberty Street Medical Arts Building at 765 Liberty Street, Suite 309, adjacent to the Meadville Medical Center. Dr. Anand studied at M.S. Ramaiah Medical College, Bangalore, India. She completed internal medicine residency training at Allegheny General Hospital in Pittsburgh through Drexel University; and a family medicine residency at the Western Pennsylvania Hospital, through Temple University. She is board-qualified for internal medicine certification and specializes in the prevention, diagnosis and treatment of adult diseases.

EDITORIAL > Contact: Karen Torres

2011 ERIE ATHENA AWARD PRESENTED TO MOORE RESEARCH CHIEF Colleen Moore Mezler, president and CEO of Moore Research Services, a full-research company based in Millcreek Township, recently was honored with the 2011 Erie Athena Award, during a fall luncheon at the Bel-Aire Hotel and Conference Center. Moore was recognized for her volunteer service and her work as an active and vocal supporter of women in business, women in the community and women around the world. In addition, Catherine Franks, a senior majoring in mechanical engineering at Penn State Erie, The Behrend College, was honored with the 2011 Athena Young Professional Award for her accomplishments in and out of the classroom. A native of Gibsonia, Pennsylania, she is an intern at Erie-based FMC Technologies, a manufacturer of measurement solutions for the energy industry, where she plans to work after graduation. Athena PowerLink Chair Linda Stevenson, 2011 Athena Award recipient Colleen Moore Mezler, Emily Taft, Christine Longnecker, 2011 Athena Young Professional Award recipient Catherine Franks, Christine Alozie and Hannah Kirby.

ēĞİİČďč Ă­ Ä“ĢįģďįĪÄžÄŤÄ Ä˘ Ă­ Ä‡Ä˘ÄĄÄŚÄ ÄžĹČďč Ä“ĢįİďčĞĊ Ä‰ÄŚÄŤÄžÄŤÄ ÄŚÄžÄŠ Ä“ÄŠÄžččČčĤ Ä„İİĢĹ Ä?ĞčĞĤĢĪĢčĹ Ä–Ä˘ÄŻÄłÄŚÄ Ä˘Ä°

:+< &+226( 7($0 5266%$&+(5 )25 <285 :25.(56¡ &203(16$7,21"

Ä“ĢčİČďčİ Ä‰ÄŚÄŤÄžÄŤÄ ÄŚÄžÄŠ ÄˆÄĄÄ˛Ä ÄžĹČďč ÄˆÄ°ÄąÄžĹĢ Ä“ÄŠÄžččČčĤ

Ä–ďIJčĥ Ä‰ÄŚÄŤÄžÄŤÄ ÄŚÄžÄŠ Ä“ÄŠÄžččČčĤ Ä“įIJĥĢčĹ Ä„İİĢĹ Ä?ĞčĞĤĢĪĢčĹ

:H VSHFLDOL]H LQ :RUNHUV¡ &RPSHQVDWLRQ

Ä•ĢĹČįĢĪĢčĹ Ä“ÄŠÄžččČčĤ

DFWLYH ZRUNHUV¡ FRPS DFFRXQWV RI DOO VL]HV LQ PXOWLSOH VWDWHV ² VHUYLQJ LQGXVWULDO PDQXIDFWXULQJ VHUYLFH KHDOWK FDUH PXQLFLSDO LQVWLWXWLRQDO DQG RWKHU FRPPHUFLDO FOLHQWV

Ä“ÄŻÄŹÄąÄ˘Ä ÄąÄŚÄŹÄŤ Ä“ÄŠÄžččČčĤ

<RX¡OO KDYH PRUH RSWLRQV

:HVW WK 6WUHHW ‡ (ULH 3$

%\ UHSUHVHQWLQJ D YDULHW\ RI LQVXUDQFH FDUULHUV DQG SURJUDPV ZH DUH PRUH OLNHO\ WR Ă€QG WKH EHVW PDWFK IRU \RXU FRPSDQ\ ‡ RI WKH WRS 3HQQV\OYDQLD FDUULHUV ‡ 7KH 0%$ :RUNHUV¡ &RPSHQVDWLRQ 3URJUDP ‡ ,QGXVWU\ VSHFLĂ€F FXVWRP DQG FDSWLYH SURJUDPV

=XFN 5RDG ‡ (ULH 3$

ÄĽÄ&#x;Ä¨Ä°ÄŹÄŻÄ Ä˘ Ä ÄŹÄŞ

3 6 3HUVRQDO 6HUYLFH 6LQFH

ÄŒčİIJįÄžÄŤÄ Ä˘ Ä­ÄŻÄŹÄĄÄ˛Ä ÄąÄ° ďģģĢįĢĥ ĹļįďIJĤļ Ä‹Ä…ÄŽ Ä–ÄŹÄŻÄ Ä˘ ÄŒčİIJįÄžÄŤÄ Ä˘ Ä?Ä?Ć ÄŒčijĢİĹĪĢčĹ Ä„ĥijČİďįĜ Ä–Ä˘ÄŻÄłÄŚÄ Ä˘Ä° ďģģĢįĢĥ ĹļįďIJĤļ Ä‹Ä…ÄŽ Ä–ÄŹÄŻÄ Ä˘ Ä„ĥijČİďįĜ Ä?Ä?Ć Ä–Ä˘Ä Ä˛ÄŻÄŚÄąÄŚÄ˘Ä° ďģģĢįĢĥ ĹļįďIJĤļ Ä“IJįİļĢ ĎĞĭĊĞč Ä–ĹĢįĊČčĤ ÄŒčijĢİĹĪĢčĹİ Ä?ĢĪÄ&#x;Ģį ĉČđĕĄ ĖČēĆ Ä‹ĢÄžĥĎIJÄžįĹĢįĢĥ ĞĹ ĆďįĭďįĞĹĢ Ěďďĥİ Ä…Ċijĥ Ä„ÄŠÄ&#x;ĞčĜ Ä‘Äœ Ä‹Ä…ÄŽ Ä–ÄŹÄŻÄ Ä˘ ÄŒčİIJįÄžÄŤÄ Ä˘ Ä?Ä?Ć Ğčĥ Ä‹Ä…ÄŽ Ä–ÄŹÄŻÄ Ä˘ Ä„ĥijČİďįĜ Ä?Ä?Ć ÄžįĢ ÄŤÄŹÄą ĞģģČĊČĞĹĢĥ ĴČĹļ Ä“IJįİļĢ ĎĞĭĊĞč Ä–ĹĢįĊČčĤ ÄŒčijĢİĹĪĢčĹİ Ä‘Ä’Ä— ĉćČĆ ČđĖĘĕĈć Ä‘Ä’Ä— Ä…Ä„Ä‘ÄŽ ĊĘĄĕĄđėĈĈć Ä?Ä„Äœ Ä?ĒĖĈ ęĄÄ?ĘĈ ČđĆÄ?ĘćČđĊ Ä?Ä’Ä–Ä– Ēĉ ēĕČđĆČēĄÄ? Ä‘Ä’Ä— ČđĖĘĕĈć Ä…Äœ Ä„Ä‘Äœ ĖėĄėĈ Ä’Ä• ĉĈćĈĕĄÄ? ĄĊĈđĆĜ

&RQWDFW 6FRWW )RJOH RU %UDG $OOHQ 7HDP#7HDP5RVVEDFKHU FRP

40 < www.mbausa.org < December 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

Member FDIC. Citizens Bank is RBS Citizens, N.A. and Citizens Bank of Pennyslvnaia. 111510

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

Fewer sick days. What’s it worth to U?

Introducing HealthyU from UPMC Health Plan. The plan that offers financial rewards for making healthy choices. We understand how much a healthy workforce is worth to you and your business. Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year, or $225.8 billion annually. That’s why we created a health plan that gives your employees real incentives for making smart and healthy lifestyle decisions. To learn more about this new, one-of-a-kind plan, contact your producer, visit UPMCHealthyU.com or call 1-877-563-0292.

upmchealthyu.com

Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.