April 2009 Business Magazine by MBA Business Magazine

ANNUAL REPORT: June 2009 2009 Special Advertising Offer

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

VOLUME XXII, NUMBER 4

APRIL 2009

Par for the Course Golfers Give Back at Associationâ&#x20AC;&#x2122;s Annual Golf Tournament pg.13

: n o i t i d E l a Speci e u s s I f l o G 2009

Erie-based electronics contract manufacturer expands footprint with value-added services

GEORGE W. BUSH

43rd President of the United States

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Wednesday, June 17 Bayfront Convention Center 5:30 Member Cocktail Reception Reservations: Please call Tracy Shepard at 814/833-3200 or 800/815-2660

APRIL 2009

EDITORIAL >

FEATURES >

5 / Health Matters

3 / Spotlight

The challenges of chronic illnesses on the U.S. health-care system. CYNTHIA NAPIER ROSENBERG, M.D.

Planning to invite a client to a golf outing for the first time? Consider our detailed list of dos and don’ts.

7 / Legal Brief

21 / Tax Freedom Day

Why you should consider updating your estate plan. ATTORNEY JAMES E. SPODEN

9 / Financial Adviser How the stimulus plan is creating a tax tumult. DEAN FAIR, CPA

11 / e-Marketing Why a challenging economy is the right time to seek out affordable e-marketing methods. CATHY VON BIRGELEN

Guest columnist Richard Rabuck discusses why Tax Freedom Day is cause for concern, not celebration.

24 / Association Training Recognition Ceremony See photos of the approximately 200 graduates of the Association’s training certificate programs who will be honored during a special ceremony on April 14 at the Manufacturer & Business Association Conference Center.

27 / Tech News

How a third-party integration firm can help sway future business your way. JOSEPH SNYDER

SPECIAL SECTION > 12 / 2009 Golf Guide Learn where to play and how to improve your golf game, in this special edition of the Business Magazine.

DEPARTMENTS > 4 / Business Buzz 18 / HR Connection

21 / On The Hill 22 / Legal Q&A 28 / In Memoriam

Read this edition of the Business Magazine online at www.mbausa.org and learn about our special advertising promotion for the 2009 Annual Report — our largest issue of the year!

April 2009 > www.mbausa.org > 1

SPOTLIGHT > by Karen Torres Golf isn’t merely a game. It’s also a great environment for networking and new business opportunities that can help build lasting relationships for you and your company. Below is a five-minute discussion with a customer on what to consider prior to inviting them to play a round with you for the first time.

VOL. X XII, NO. 4 APRIL 2009

Manufacturer & Business Association Board of Governors

Here are a few things that your guests may be thinking: It would be nice if… before you invited me, you found out what my skill level is and how well I am at golf. That helps determine if the course fits my ability and who else you may want to include in our group. It would be nice if… you could tell me a little more about the course and facility where we’re playing. Is there a practice range? Lockers? Don’t assume that I know where the course is located. Directions, even an address and phone number would be helpful, especially your cell phone number. It would be nice if… you would focus on me instead of improving your game. This is a great opportunity for us to get to know each other better. It would be nice if… having invited me, we’re going to ride in the same cart and play off the same set of tees. Even if you normally play from the blue tees, I normally play from the whites. It would be nice if… we can talk business when I bring it up. I know we’ll talk about it at some point during the day, but sometime it’s better to talk after the round is over. It would be nice if… when I turn my cell phone off, you do the same. It would be nice if… as my host, you realize that it’s not necessary for you to always be my caddy. I’m happy to hold the flag for you. It would be nice if… I offer to buy a raffle ticket, or a round of drinks, that you please let me do so. I understand you’re the host, but it makes me feel more comfortable. Remember… as your guest, I accept your invitations because I value our business relationship and want to develop it as much as you do. Thank you for thinking of me. Here’s to a good round together.

‘The Gospel According to St. Titleist’ Some words of wisdom about golf… 1. “Eighteen holes of match play will teach you more about your foe than 18 years of dealing with him across a desk.” — Grantland Rice 2. “It is almost impossible to remember how tragic a place the world is when one is playing golf.” — Robert Lynd 3. “If profanity had any influence on the flight of the ball, the game of golf would be played far better than it is.” — Horace G. Hutchinson 4. “They say golf is like life, but don’t believe them. Golf is more complicated than that.” — Gardner Dickinson 5. “If a lot of people gripped a knife and fork as poorly as they do a golf club, they’d starve to death.” — Sam Snead 6. “Golf is a day spent in a round of strenuous idleness.” — William Wordsworth 7. “If you drink, don’t drive. Don’t even putt.” — Dean Martin 8. “If you are going to throw a club, it is important to throw it ahead of you, down the fairway, so you don’t have to waste energy going back to pick it up.” — Tommy Bolt

Dale Deist Gerald B. Eighmy Scott M. Hanaway Dan Ignasiak Mark C. Kulyk William F. Muck John B. Pellegrino Sr. Dennis Prischak Timothy G. Shuttleworth Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo rpontillo@mbausa.org Executive Editor John Krahe jkrahe@mbausa.org Managing Editor & Karen Torres Senior Writer ktorres@mbausa.org Contributing Cathy von Birgelen Writers Jessica Crocker Dean Fair, CPA Cynthia Napier Rosenberg, M.D. Joseph Snyder James E. Spoden, Esq. Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Design, Production Printing Concepts Inc. & Printing printcon@erie.net

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 2009 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.

Source: www.eatgolf.com

April 2009 > www.mbausa.org > 3

Business Buzz MARQUETTE OPENS NEW BRANCH A ribbon-cutting ceremony was recently held for the new Marquette Savings Bank branch on West 38th Street and Sterrettania Road in Millcreek Township. “Celebrating the grand opening while we mark our 100-year anniversary is exciting for Marquette,” said CEO Michael B. Edwards, in a prepared statement. “Both signify Marquette’s commitment and connection to our hometown.” Open since early February, the Sterrettania location offers drive-thru, teller and ATM service, safety-deposit box rentals and Saturday hours. For details, visit www.marquettesavings.com.

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4 < www.mbausa.org < April 2009

DEPARTMENTS > Contact: Jessica Crocker

ERIEZ CONFERENCE ATTRACTS WORLDWIDE ATTENTION Eriez Magnetics’ 2008 Business and Marketing Conference at the Erie Bayfront Convention Center attracted about 120 attendees from Eriez field sales offices and affiliate plants around the world, according to the company. The conference addressed the present state of the company, corporate plans for the future and common opportunities and challenges faced by every business unit within the Eriez family. Bryan Shirley, president and CEO of the Manufacturer’s Agents National Association, served as the keynote speaker, highlighting the benefits of a harmonius relationship between sales representatives and manufacturers. Headquartered in Erie, Eriez is recognized as a world authority in advanced technology for magnetic, vibratory and inspection applications. Eriez manufactures and markets their products through 11 international facilities

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located on six continents. For more information, visit www.eriez.com. VNA RELOCATES OFFICES TO MILLCREEK TOWNSHIP After 38 years at the same location in downtown Erie, the Visiting Nurse Association (VNA) of Erie County has relocated to 2253 West Grandview Boulevard in Millcreek Township. VNA Executive Director James Jaruszewicz said: “The new office meets our technology needs, is more energy efficient, lowers our maintenance costs and gives our clinicians easier access to our patients throughout the county.” Founded in Erie in 1906, VNA has a long history of responding and adapting to community needs while providing residents of Erie County with the highest quality, uninterrupted home health care and hospice services. For information, visit www.erievna.org.

EDITORIAL > by Cynthia Napier Rosenberg, M.D.

Health Matters

Chronic Illnesses Present a Unique Problem for American Health Care Because chronic illnesses are ongoing conditions that require adjustments by the affected person as well as frequent interaction with the health-care system, they are difficult and costly conditions to treat. The World Health Organization reports that chronic diseases are the major cause of death and disability worldwide. This only increases the severity of the problem. Almost half the people with chronic illness have multiple conditions. As a result, many managed care and integrated delivery systems have taken a great interest in correcting the many deficiencies in current management of diseases such as diabetes, heart disease, depression, asthma and others. It is estimated that chronic illness accounts for three quarters of total national healthcare expenditures. Unfortunately, although the U.S. health-care system is often at its best in treating acute medical problems, it is not designed to treat chronic, long-term conditions, which require both the time and the expertise of many health-care professionals. In the current system, providers are often rushed and frequently lack access to other health-care team members (such as diabetic educators and care managers) who are critical to the successful treatment of persons with chronic diseases. In addition, adequate care coordination and appropriate follow-up is often lacking, important pieces of a patient’s health-care record are not routinely transferred from one care setting to another, and patients and their families are inadequately trained to manage their illnesses. If health care can change from being only acute and reactive to being more proactive and planned, health care can become more patient-centered and health outcomes for persons with chronic conditions can be improved. The Chronic Care Model (CCM) is a framework to redesign the health-care system to better serve persons with chronic conditions. The six core elements of CCM are:

• Health-care organization and leadership. This is an organizational environment that systematically supports and encourages chronic illness care through leadership and incentives. • Linkage to community resources. The community can provide costeffective access to services such as nutrition counseling, peer-support groups and data for patient registries. • Support of patient selfmanagement. Individual and group interventions that emphasize patient empowerment and self-management skills are effective in managing many chronic conditions such as diabetes and asthma. • Coordinated delivery system design. This is designed to coordinate actions of multiple caregivers in the treatment of one patient. • Clinical decision support. Incorporating evidence-based practice guidelines into registries, flow sheets and patient assessment tools can be an effective way to change provider behavior. • Clinical information systems. With access to adequate database software, health-care teams can use disease registries to contact patients to deliver proactive care, implement reminder systems and generate treatment plans and messages to facilitate patient self-care. What is the connection to the Patient-Centered Medical Home? At the heart of the Patient-Centered Medical Home – defined simply as physician-guided, patient centered care – is the Chronic Care Model. The Chronic Care Model requires a major rethinking of primary care practice. In the Patient-Centered Medical Home concept, there is a partnership between the physicians, the patients and their families that makes it work. The goal is a holistic, coordinated plan of care that

uses evidence-based medicine to produce better outcomes and lower costs. Is CCM effective? Studies have shown the chronic care model can achieve better disease control, higher patient satisfaction and better adherence to guidelines by redesigning delivery systems to meet the needs of chronically ill patients. For example, patients with acute depression can receive significantly better primary care treatment through a systematic program of feedback to doctors on treatment recommendations, supplemented with follow-up and care management by telephone. Similarly, patients with diabetes have been shown to benefit with self-management support provided by the use of “mini clinics” of teams of providers. Instead of receiving uncoordinated care from a multitude of providers in a variety of settings, patients receive all of the care needed for their diabetes, including eye and foot care, as well as diabetic education, in one place. As the population ages, and as the incidence of chronic diseases continues to rise, it is imperative that we redesign our health-care system to better care for persons with these conditions. The Chronic Care Model, in conjunction with the Patient-Centered Medical Home, incorporates the necessary elements to provide that care. For more information, visit www.upmchealthplan.com. Cynthia Napier Rosenberg, M.D., is senior medical director for UPMC Health Plan, which is part of the UPMC Insurance Services Division – which includes UPMC Health Plan, UPMC Work Partners, LifeSolutions (EAP), UPMC for You (Medical Assistance), and Community Care Behavioral Health. April 2009 > www.mbausa.org > 5

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Legal Brief

EDITORIAL > by James E. Spoden, Esq.

It May Be Time to Update Your Estate Plan Many estate plans currently include credit shelter trust provisions that are designed to maximize federal estate tax savings. As a result of the increase in the Exemption Equivalent Amount (the “EEA”), which is likely to become permanent, this planning approach may now be eliminated for many taxpayers whose estates are less than $3.5 million. Most individuals may transfer an unlimited amount to their spouses upon death without federal estate tax consequences. Individuals also may transfer an amount equal to the EEA to anyone whom they choose free from federal estate tax. The EEA has gradually increased from $1 million in 2002 to its current level of $3.5 million. Although scheduled to revert back to the $1 million level in 2011, it is likely that legislation will be adopted in 2009 to permit the EEA to remain at or near its 2009 level of $3.5 million into the foreseeable future. For many individuals, estate-planning goals can be accomplished under a simple will that gives everything to his or her spouse. However, a simple will often results in the loss of the tax savings associated with the EEA for the first spouse to die. In order to utilize each spouse’s EEA, many estate plans currently provide that the maximum EEA available at the death of the first spouse to die shall be transferred into a “credit shelter trust” that provides income for the surviving spouse during his or her lifetime, and upon the surviving spouse’s death, the trust’s assets pass to the couple’s children. Because the surviving spouse has only a limited or restricted interest in the trust, the assets that are held in

the trust will escape tax on the death of the surviving spouse. If the EEA remains at its current level of $3.5 million, it may be unnecessary for many individuals to utilize a credit shelter trust in order to maximize estate tax savings. Consider the following examples for a husband and wife who have a combined estate of $3 million, $2.5 million of which is in the husband’s name and $500,000 of which is in the wife’s name: If Husband Died in 2007 If the husband had a simple will (leaving all to wife) and died in 2007, when the EEA was $2 million, there would have been no federal estate tax liability upon his death. Upon the death of his wife in 2008, her entire $3 million estate would have been subject to tax of approximately $500,000 (for example, $3 million less $2 million EEA times 50 percent approximate federal tax rate). If the husband had established a credit shelter trust in his will, upon his death, $2 million would have been transferred into the credit shelter trust free from federal estate tax. Upon his wife’s subsequent death, the total estate tax liability would have been zero. The credit shelter trust would have resulted in a $500,000 savings. If Husband Dies in 2009 If the husband has a simple will and dies in 2009, there will be no federal estate tax liability upon his death. Upon the death of his wife later during 2009, there will again be no federal estate tax liability because the combined $3 million gross estate is less than the $3.5 million EEA. If the husband had established a credit

shelter trust, his entire $2.5 million estate would be transferred into the credit shelter trust. There would be no federal estate tax savings, but his wife would have only $500,000 of unrestricted assets in her own name. The couple would have unnecessarily created and funded a trust that they do not need (to save taxes), adding cost and complexity to their estate plan. Conclusion As you can see, depending on the size of one’s estate, credit shelter trust arrangements are sometimes unnecessary and even undesirable. Accordingly, many individuals should revisit their estate plan to simplify their plan and eliminate unintended results. For more information on estate planning, please contact Attorney James E. Spoden at 814/870-7710 or jspoden@mijb.com. Note: At the time this article went to print, several bills to this effect had been proposed, but none were adopted.

James E. Spoden is a senior partner at MacDonald, Illig, Jones & Britton LLP and member of the firm’s Corporate, Estate and Real Estate Departments. His practice areas include corporate, commercial and business law, with an emphasis on taxation and estate planning for smallbusiness owners.

April 2009 > www.mbausa.org > 7

Financial Adviser

EDITORIAL > by Dean Fair, CPA

Stimulus Package Creates Tax Tumult No matter what side of the aisle you lean toward, the new American Recovery and Reinvestment Act of 2009, which was signed into law in February, has more than 300 changes to the Internal Revenue Code that we all need to examine. The new tax laws cover individuals and businesses and most are retroactive to January 1, 2009. There are $280 billion in tax breaks effective within the first two years of the legislation. The new bill has more than $75 billion in tax incentives for businesses in 2009 and 2010. The legislation extends bonus depreciation, increases Code Section 179 expensing, provides a five-year carryback of net operating losses (NOLs), allows refundable credits in lieu of bonus depreciation, allows cancellation of indebtedness, addresses the S Corp built-in tax gain period, changes COBRA provisions and provides several other business-related incentives. Bonus Depreciation The 50 percent first-year bonus depreciation allowed under the 2008 Economic Stimulus Act has been extended through December 31, 2009. The extension will be retroactive to January 1, 2009. There also is a higher cap on vehicle depreciation effective January 1, 2009. The regular dollar cap for new vehicles put in service in 2009 is now $10,960 ($11,160 for light trucks and vans) if bonus depreciation is elected. Code Section 179 Expensing The increased Code Section 179 smallbusiness expensing amounts have been extended through 2009. The amount of the allowable Code Section 179 expenses will remain at $250,000 for 2009 and the threshold for reducing the deduction will remain at $800,000.

NOL Carryback The Act provides a five-year carryback of 2008 NOLs but only for qualified small businesses with average gross receipts of $15 million or less. Businesses now have the choice to carryback NOLs three, four or five years. This will apply only to any tax year beginning or ending in 2008. Refundable Credits in Lieu of Bonus Depreciation With the passage of this new law, businesses are now allowed to continue to monetize accumulated AMT and Research & Development (R&D) credits in lieu of taking bonus depreciation. This legislation extends the opportunity for all property qualifying for bonus depreciation placed in service for 2009. Cancellation of Indebtedness Now, with the new bill, certain businesses are able to recognize cancellation of indebtedness income over five years for specified types of debt repurchased by the business after December 31, 2008 and before January 1, 2011. An applicable debt instrument under the new law means a bond, debenture, note, certificate, or any other instrument constituting indebtedness issued by a C corporation or any other person in connection with the conduct of a trade or business by such a person. S Corp Built-In Gain Period The holding period for assets subject to the built-in gains tax imposed after a C corp elects to become an S corp has been changed from 10 to seven years under the new law. This change applies to C corps that convert to S corps in tax years 2009 and 2010. COBRA Benefits There also is a significant change that affects businesses that are subject to the COBRA provisions. Most employees who are involuntarily separated from

employment between September 1, 2008 and December 31, 2009 can elect to have to pay only 35 percent of the COBRA premium for up to nine months. The former employer will be required to pay the remaining 65 percent, but is reimbursed by claiming the payment as a credit against its federal payroll tax obligations. Other Tax Incentives Other tax incentives for business under the American Recovery and Reinvestment Act include the Work Opportunity Tax Credit (WOTC); increase in exclusion percentage for gain from sale of certain small business stock; NOL limitation on banks reinstated; decrease in estimated tax payments for individuals whose income is primarily from a small business; and an increase in the New Markets Tax Credit (NMTC). As with all tax laws and regulations, you must examine how best to utilize these tax incentives for your business. To get more information on how your business may benefit from any of these new tax laws, please contact Dean Fair at McGill, Power, Bell & Associates, LLP at dfair@ mpbcpa.com or 814/724-5890.

Dean R. Fair, CPA, is the managing partner at McGill, Power, Bell & Associates, LLP. He specializes in auditing, tax accounting and planning, and business consultation. Fair focuses his practice in the manufacturing industry and has extensive experience with tool and die and plastic molding businesses. As a licensed CPA in Pennsylvania and New York, he services clients in both states.

April 2009 > www.mbausa.org > 9

MBA

Now’s the time. Penn State’s the place.

In this economy, getting your MBA from a university that’s respected worldwide can make all the difference in starting or advancing your career. Erie Insurance Group’s Ann Scott knows the value of a Penn State MBA. Find out how to get yours—right here at home.

MBA Information Sessions Tuesday, April 14, or Thursday, May 14, at 6:00 p.m. at Penn State Behrend’s Logan House. Register at behrend.psu.edu/mymba or 866-374-3378

Ann Scott, Diversity and Community Outreach Director for Erie Insurance, is one of the many MBA graduates of the Sam and Irene Black School of Business enjoying professional success across our region and around the world.

10 < www.mbausa.org < April 2009

e-Marketing

EDITORIAL > by Cathy von Birgelen

Online Channel Sustains Businesses in Challenging Economy The Internet has become the preferred information source with more than 92 percent of people going online to research a product, service, component or supplier. Today’s businesses are beginning to see the light when it comes to online marketing as they slowly begin to shift more dollars to the online channel. A challenging economic period is exactly when effective, efficient and affordable e-marketing methods can help marketers. The recently released 2008 Digital Future Project study reports percentages of Internet users who were involved in the following activities at least weekly: • E-mail (96 percent) • Internet surfing without a specific destination (71 percent) • Looking for news online (60 percent) • Finding product information (43 percent) • Conducting online banking or other financial services (38 percent) • Instant messaging (37 percent) • Playing online games (35 percent) • Searching for humorous content (25 percent) According to a recent Gallup Poll, Americans’ frequent use of the Internet has almost doubled in the last five years. Today’s high school graduates have grown up with technology embedded in everything they do, and statistics indicate a significant shift in our buying and social behaviors. As these behaviors continue to change, we, as business marketers, must adapt how we address the needs of online users and make e-marketing an essential element of our marketing strategy. The online marketing channel grew at a rapid pace the last few years — and yes, I do believe it will continue to grow, although maybe at a lower rate. Why?

Because it has become the preferred channel: the preferred communication method is e-mail; the preferred entertainment and news channel is online; and the preferred pre-purchase evaluation channel is Google. Understanding these behaviors and learning how to meet customer preferences should drive what communication channel you choose to spend your budget on. A key benefit is that e-marketing is easily measured and tracked and allows you to continually optimize your e-mail marketing, Web site usability, and improve search engine ranking and placement. What Businesses Are Saying I recently contacted several businesses including, retail, service and industry and digital marketing service providers to get a pulse on what they are experiencing in their businesses with the current recession. One small niche retailer said store sales were down in 2008 but online sales were up due to an increased focus on selling products online. A manufacturer reported it had experienced a slowdown in several market segments but that early efforts to consolidate the marketing and sales process through the online channel has helped them to operate more effectively and efficiently. These companies began taking the necessary steps early and are not only further ahead with their online growth initiatives, but also have a sustainability advantage. I also chatted with several online marketing solution providers and digital agencies that expressed to me how overwhelmed they are with their sizeable backlog of projects. Their biggest challenge is finding the right talent with the necessary knowledge and skills to keep pace with the work. The good news is that it is a clear indication that businesses are taking the necessary steps to leverage the online channel for growth and sustainability.

However, the skills gap is not unique to professional services. This is something that employers and employees should begin immediately addressing within their organizations. Start by taking an internal audit of what the knowledge and skills gaps are. I think you will discover that from top management to sales, marketing and IT, the staff will tell you they feel ill-equipped and lacking in the required knowledge to use online marketing strategies vital to successful business marketing. Start With Research My recommendation is to seek education before making decisions and take the time to educate all the key stakeholders involved so everyone gains knowledge based on research and best practices. In tough times, the measurable and costeffective benefits of the online channel can make the difference in your business’s ability to succeed. For more information, contact Cathy von Birgelen at The eMarketing Learning Center @ eBizITPA at 814/898-6547 or cathy.vonbirgelen@ebizitpa.org. Cathy von Birgelen is the director of The eMarketing Learning Center @ eBizITPA (eMLC). eMLC develops industry-leading curriculum and educational experiences to help workforce professionals obtain the knowledge and skills necessary to effectively use digital marketing – a vital component to success in today’s highly competitive global market.

April 2009 > www.mbausa.org > 11

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Each year as the ground begins to thaw, ushering in spring and the beginning of the Pennsylvania golf season, planning kicks into full gear for the Manufacturer & Business Association’s annual Golf Classic Tour. The tournament, an early sell-out, mixes business with pleasure, as members of the Association and their guests are invited to tour the greens and fairways of a premier northwest Pennsylvania golf course to help three very worthwhile charitable causes — Pennsylvania Business Week, The Patrick R. Locco Scholarship Awards and The John P. Tramontano Jr. Education Fund. In fact, since the tournament started 11 years ago, more than $50,000 has been raised to benefit these educational programs and students in our region. This year, the Association expects to increase this campaign pledge at the 11th Annual Golf Classic on Tuesday, August 11, 2009, at the exquisite Whispering Woods Golf Club, 7214 Grubb Road in Erie, an event made possible by major sponsor UPMC Health Plan and returning sponsors Roth Cadillac, Highmark, Matric Limited and Creative Imprint Systems. Additional sponsorships are still available. “Through the generous support of our sponsors and member company participants, we expect to showcase a beautiful golf course and raise funds for three important educational programs,” said Manufacturer & Business Association Chairman Tim Shuttleworth, president and CEO of Eriez Magnetics. “These three programs are shining examples of programs that will help to better educate the next generation of leaders.” Adds Ki Kim, sales executive for UPMC Health Plan, a major sponsor of the golf tournament, “UPMC Health Plan is always an enthusiastic sponsor of MBA events. We look forward to supporting the Association and its members, and we’re especially proud to help Pennsylvania Business Week and great scholarship programs like the Patrick R. Locco and John Tramontano funds that ensure succeeding generations are prepared for the challenges ahead.” Here is a closer look at the three programs that the golf outing benefits: PENNSYLVANIA BUSINESS WEEK … Developed by the Manufacturer & Business Association in conjunction with Fort LeBoeuf High School in late 1997, Pennsylvania Business Week (PBW) is the first in-school program of its kind in the United States. In 1999, the Americans for the Competitive Enterprise System (ACES) added PBW to its list of economic education programs. The program is an intense one-week economic education program that introduces high school students to the challenges of running a business

UPMC Health Plan has been

a longtime sponsor of

the Association’s Golf

Classic Tour.

in today’s competitive environment. PATRICK R. LOCCO SCHOLARSHIP AWARDS … The Locco Awards were created 36 years ago by the Association to recognize outstanding high school students who distinguish themselves in pursuit of technical and academic excellence. Students must apply and be nominated by a teacher to be considered. Each school narrows the nominees to their top five candidates who are interviewed by local businesspeople to choose the winners. Award winners each receive a $1,000 scholarship toward their advanced education. JOHN P. TRAMONTANO EDUCATION FUND … Established in 1999, the John P. Tramontano Jr. Education Foundation, named after John Tramontano Jr., a staunch advocate of education, provides scholarships to students entering kindergarten through the eighth grade. The students who qualify receive 50-percent off tuition, up to a maximum of $1,000. To receive this scholarship, students must reside in Erie County, attend a parochial, private or public school outside of their district, and qualify for a federal reduced or free lunch program. To register or become a sponsor of the 11th Annual Golf Classic, contact Dianne Wodarski at 814/833-3200, dwodarski@ mbausa.org,or visit our Web site at www.mbausa.org.

Golf Classic on Tour In the past 11 years, the Golf Classic has been

held at some of the most popular golf courses in the Association’s 17-county membership region, including: • Olde Stonewall Golf Club – Ellwood City. Web site: www.oldestonewall.com • Wanango Country Club — Reno, near Franklin. Web site: www.wanango.com • The Country Club of Meadville – Meadville. Web site: www.meadvillecc.com • Oak Tree Country Club — West Middlesex, near the Ohio-Pennsylvania border. Web site: www.oaktree-cc.com • Whispering Woods — Erie. Web site: www.whisperingwoodsgc.com

April 2009 > www.mbausa.org > 13

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Contact Information Contact Information Rich Rocky Rich Rocky @XP&^+*',4"*&"-&X"#@XP&^+*',4"*&"-&X"#-

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7214 Grubb Road 7214 Grubb Road Erie, Pa. 16506 Erie, Pa. 16506

/ ÃÊ i>` } i`}iÊv>V ÌÞÊ ÜÊ >ÃÊ>ÊÛiÀÞÊ ` ÃÌ VÌÊ>`Û> Ì>}ip À°Ê >À Ê6> Þ i° At Hamot Occupational Health, we’re pleased to provide regional businesses with greater, more convenient access to our comprehensive employee health services and skilled physician specialists. And now, as the only Board Certified Occupational Health Physician in northwest PA, Dr. VanDyke would like to welcome you to our new, leadingedge facility—recently opened at 5035 Peach St. Our new site offers a full range of critical workforce services and capabilities including: Ê Ê Ê Ê Ê Ê Ê Ê Ê

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4 ways to improve your company’s retirement plan: And one clear example of how investing in relationships reaps dividends. Here’s why Don Sieber, President of McCarty Printing, goes Northwest...

1 Make a commitment to educating plan participants.

Northwest is committed to regular, employee education — an approach that increases plan participation and contributions. #

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“ Northwest made the transition seamless. It is wonderful to work with a local provider eager to respond to your questions and needs and work with you in a professional manner. Their employee education is helpful and informative and we have seen a substantial increase in participation. Our company and employees absolutely recommend Northwest. They bring great accessibility, superior knowledge, and a genuine desire to work with you.”

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HR Connection ENGAGED EMPLOYEES BOOST PRODUCTIVITY When employees are highly engaged, their companies enjoy 26-percent higher employee productivity, have lower turnover risk, and are more likely to attract top talent, according to a report by consulting firm Watson Wyatt. The survey found the following about highly engaged employees: • They are twice as likely as their less engaged peers to be top performers. • They miss 20 percent fewer days of work. • Three-quarters of them exceed or far exceed expectations in their most recent performance review. • They tend to be more supportive of organizational change initiatives and resilient in the face of change.

*NSURANCE 1OSTINGS FROM 1ATTY

Each year around mid-February, in anticipation of the upcoming May 1 Ancillary ren ewal, the billing office distributes a salary upd ate sheet to all groups participating in the Ass ociationsponsored Life and Short-Term Disa bility plans. Please pay special attention to the se worksheets and return them to the billing offi ce in a timely manner to ensure accurate and upd ated coverage for you and your employee s.

FEWER EMPLOYERS TO ADOPT AUTOMATIC 401(K) ENROLLMENT The number of employers adopting premium 401(k) features like automatic enrollment and company matches has slowed in response to the economic climate, according to a survey by Hewitt Associates, an HR consulting firm.

Instead of those higher-cost features, employers are focusing their efforts on offering more lower-cost strategies, such as automatic rebalancing (a tool that helps employees regularly balance their portfolios with their target allocations) and target-date funds in an effort to mitigate immediate cost pressures and stay fiscally responsible.

Contractors & Construction Managers ~ Since 1906

18 < www.mbausa.org < April 2009

Patty Smith is the director of Emplo yee Benefit Services at the Manufactur er & Business Associa tion.

DEPARTMENTS > Contact: John Onorato

As Simple as Respect: Inclusion in the Workplace Little things can add up to discrimination and harassment. Do your managers and supervisors understand that ostracizing an employee can backfire? Do they make diligent efforts to train everyone equally and include everyone in work-related social events? If not, it’s time to remind them. Simply put, even little things can quickly add up to a hostile environment or sex discrimination case — especially if the work force was previously heavily skewed in favor of one sex. In a recent case a female employee for a Sheriff’s Department filed a lawsuit, based in part that she was denied opportunities had by her male co-workers. She said male deputies stopped talking when she walked into a room. She was also allegedly excluded from the Fantasy Football leagues, golf

outings and other social events like campfires. Plus, her co-workers often talked about the events she missed so that she could hear. More significantly, she said she didn’t get the same training as male deputies. For example, she wasn’t trained on how to operate alcohol breath analysis equipment, nor did she get a camera or evidence locker like the men did. All this, she said, was a concerted effort by co-workers and management to drive her out. Bottom line: Make sure everyone welcomes new employees into the workplace, and includes them in workrelated social events. That includes extending an open invitation to join golf outings and other events where business is discussed.

everyone to get along — it’s dangerous to exclude someone in a way that makes it look like the reason is his/her membership in a protected class. If employees want to exclude co-workers from after-work private events, tell them to cut the water-cooler pre- and postparty chatter. For assistance with any HRrelated matters, please contact the Association’s HR/Legal Services Division at 814/8333200, 800/815-2660 or e-mail me at rbruno@mbausa.org. Rose Bruno is a PHRcertified HR generalist at the Manufacturer & Business Association.

Although you can’t completely legislate civility and consideration — or expect

Meet Northwest Savings Bank’s Employee Benefits Experts

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Ellen Beth Allison

Donald J. Boetger, FSPA, EA

Employee Benefits Officer Actuary and Consultant (814) 452-1000 President, Boetger & Associates, Inc. eallison@nwbcorp.com a Northwest subsidiary (814) 455-4550 dboetger@nwbcorp.com

Take your retirement plan in a new direction... Northwest. CALL 1-877-672-5678, Option 4 E-MAIL info@nsbtrust.com VISIT your local Northwest office April 2009 > www.mbausa.org > 19

Your business is vital to our community. We’re here to make sure it stays that way. At the Quinn Law Firm, we’ve developed one of the region’s most comprehensive practices in the areas of commercial and industrial development and tax-exempt financing. Our clients include manufacturers, charitable organizations, school districts and municipalities seeking the economic benefits of tax-exempt financing. We also serve the municipal authorities, economic development agencies and lending institutions that facilitate these borrowings. In various transactions, we act as bond counsel, authority counsel, borrower’s counsel, underwriter’s counsel and bank counsel. To learn more about our Economic Development and Tax-Exempt Finance services, contact us today.

I. John Dunn

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OntheHill

DEPARTMENTS > Contact: Sheila Sterrett

Tax Freedom Day Cause for Concern, Not Celebration Richard Rabuck is the state government relations representative in the Manufacturer & Business Association’s Harrisburg office and president of the Harrisburg Trade Association Executives.

April 21 will mark this year’s Tax Freedom Day – the first day of the year in which Pennsylvanians, and the nation as a whole, have theoretically earned enough money to fund their annual tax burden. The Commonwealth’s tax burden is significant, as the state’s business tax structure remains among the highest and most onerous in the nation. In fact, the Tax Foundation – which each year calculates Tax Freedom Day – ranked Pennsylvania’s tax climate 27th in the nation in its 2009 State Business Tax Climate Index. While Tax Freedom Day sounds like a cause for celebration, it’s really a cause for concern. Given the current global marketplace, businesses are now, more than ever, looking to locate their operations in states and countries where they will have the greatest competitive advantage. Fortunately, the U.S. Department of Labor reports that most mass job relocations are occurring between states rather than offshore locations. In order to attract these businesses, states must remain cognizant of the business climate in neighboring states and create an economic environment conducive to growth. Unfortunately, the Commonwealth has struggled to remain competitive with its U.S. counterparts and, as a result, has 700,000 fewer jobs today then if its economy had grown at the national average over the past 18 years. While some of the blame can be attributed to lower wages, Rightto-Work laws and differences in the

work force, much of it lies within the state’s corporate tax structure. One of the major red flags in Pennsylvania’s business tax structure is its Corporate Net Income (CNI) tax structure. At 9.99 percent, the state’s CNI rate is the highest flatrate CNI tax in the nation — well above the national average of 6.8 percent. Additionally, Pennsylvania is one of only two states in the nation to cap Net Operating Loss (NOLs) carry-forwards and is one of only a handful of states to base its CNI apportionment on sales, assets and payroll, as opposed to a single-salesfactor-based method. According to the Tax Foundation, these factors account for more than $170 per capita in state level corporate income taxes, the 16th highest nationally. Another factor that contributes to the Commonwealth’s poor business climate is that the majority of its taxes are above the national mean. Specifically, the state’s sales-and-use tax stands at 6 percent, while the national average is only 5.4 percent. This accounted for an additional tax of $1,103 per capita in 2005. Similarly, the Commonwealth’s gasoline tax of 32.2 cents per gallon and cigarette tax of $1.35 per pack rank 11th and 20th, respectively, in the nation. A final contributing factor to Pennsylvania’s slow job growth is the state’s property taxes, which in 2004 – the latest state-bystate property tax data available – accounted for 32 percent of a business’s tax liability ($7.6 billion) and was ranked the 24th highest property tax in the nation. All told, Pennsylvania’s state and local taxes account for 10.2 percent of income – more than $4,460 per capita – ranking 11th highest nationally. It’s easy to see that if Pennsylvania is serious about growing its economy,

it must first set out to reduce its business tax burden. By doing so, the state will send a strong message to businesses looking to relocate or expand. As more businesses choose Pennsylvania as their new home, increased tax revenues will follow.

Pennsylvania’s Tax Climate • Tax Freedom Day arrives on April 21 in Pennsylvania, when residents finally have earned enough money to pay off their total tax bill for the year. • Pennsylvania’s state and local tax burden is above the national average. Estimated at 10.2 percent of income, Pennsylvania’s state and local tax burden percent ranks 11th highest nationally, above the national average of 9.7 percent. • Pennsylvania’s 2008 Business Tax Climate ranks 27th nationally. The Tax Foundation’s State Business Tax Climate Index compares the state in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. • Pennsylvania’s Individual Income Tax System consists of a flat rate of 3.07 percent on all personal income, the second lowest among states levying an individual income tax. However, many taxpayers also pay a local tax on earned income, commonly 1 to 1.5 percent. • Pennsylvania’s Corporate Income Tax System consists of a flat rate of 9.99 percent on all corporate income. Among states levying corporate income taxes, Pennsylvania ranks second highest nationally. Source: Tax Foundation

April 2009 > www.mbausa.org > 21

Legal Q&A WE ARE IN A BIT OF A JAM. OUR GOLF COURSE HOSTED A GOLF TOURNAMENT THAT WAS A FUNDRAISER FOR AN ORGANIZATION. FOR THE SAKE OF THE TOURNAMENT, WE SPONSORED A â&#x20AC;&#x153;FREE CARâ&#x20AC;? WITH A HOLE-IN-ONE ON OUR MOST DIFFICULT PAR 3. DURING THE TOURNAMENT, NO ONE ACED THE HOLE. HOWEVER, WE FORGOT TO TAKE THE SIGN DOWN. THE NEXT DAY AN INDIVIDUAL EAGLED THE HOLE, AND IT WAS WITNESSED BY A NUMBER OF PEOPLE. DO WE HAVE TO PROVIDE HIM WITH THE AUTO? Believe it or not, there is a case right on point. In Cobaugh v. Kick-Lewis, a car dealer offered the prize of a free car for a hole-in-one

hit during a charity tournament. The dealer failed to remove the display after the tournament, and a golfer who hit the hole-in-one demanded the prize. The court found that the display was an offer, reasonably understood by the golfer seeing it as being open for acceptance by anyone who performed by hitting a hole-in-one. Upon accomplishing the fete, the golfer accepted the offer and was entitled to the car. I REQUIRE MY EMPLOYEES TO UNDERTAKE A PRE-EMPLOYMENT PHYSICAL. IF THEY FAIL TO PASS THE PHYSICAL, MAY I CHARGE THE APPLICANT FOR THE COST OF THE EXAM? ALSO, IF THEY ARE HIRED, MAY I DEDUCT FROM THEIR PAY THE

COST OF THE EXAM? The Pennsylvania â&#x20AC;&#x153;Employer to Pay Employment Medical Examination Feeâ&#x20AC;? Act of 1961 addresses this matter. Section 2 of the Act states, in part, that â&#x20AC;&#x153;It shall be unlawful for any employer to require any employee or applicant for employment to pay the cost of a medical examination, or the cost of furnishing any medical records, required by the employer as a condition of employment, if the applicant or employee works for the employer for one workweek: Provided, that the provisions of this act shall not apply where medical examination is required by law as a condition of employment.â&#x20AC;? Have a legal question? Call our Hotline at 814/8333200 or 800/815-2660.

Order 26128 7/3/2008 8:46:14 AM 6.500 x 4.500

3TOCK INDEXES AND ASSET ALLOCATIONS ARE ONE THING "UT IN THE END WHAT REALLY MATTERS ARE THE INVESTMENTS WE MAKE IN THE LIVES OF THOSE AROUND US !T THE 0RIVATE #LIENT 'ROUP WE HELP YOU MANAGE GROW AND PRESERVE YOUR WEALTH SO YOU CAN PROVIDE FOR THOSE YOU CARE ABOUT MOST 7E OFFER STRATEGIES AND SOLUTIONS FOR PERSONAL TRUSTS ESTATE ADMINISTRATION AND CHARITABLE GIVING TO ENSURE YOU LEAVE YOUR LEGACY AND REACH YOUR PERSONAL GOALS n ONES THAT ENRICH AND ENHANCE YOUR LIFE AND THE LIVES OF THOSE AROUND YOU 4O EXPERIENCE THE 0RIVATE #LIENT 'ROUP CALL 3TEVE 3HILLING -ARKET %XECUTIVE AT

22 < www.mbausa.org < April 2009

DEPARTMENTS > Contact: John Onorato

Legislation Brings Changes to COBRA, HIPAA The employment-related aspects of the federal economic stimulus legislation – properly known as the American Recovery and Reinvestment Act of 2009 – have gone largely unnoticed in the publicity surrounding the stimulus package. Employers should take note. The stimulus package contains important changes to health insurance continuation rules under COBRA (the Consolidated Omnibus Budget Reconciliation Act). Specifically, the legislation seeks to lower the cost of COBRA coverage for persons who were involuntarily terminated between September 1, 2008, and December 31, 2009. Some terminated employees will be allowed to pay only 35 percent of the ordinary COBRA premium for up to nine months. Employers may seek recovery of the remaining 65 percent of the premium via credits on federal payroll taxes. In addition, eligible employees that

did not initially elect to buy COBRA coverage are given another decision period – lasting at least sixty (60) days – in which to opt for COBRA coverage. Second, where HIPAA (the Health Insurance Portability and Accountability Act) is concerned, the stimulus package also includes important changes. For example, key requirements concerning the safeguarding of protected health information (“PHI,” for short) that have applied to “covered entities” will now cover the “business associates” of those entities as well. This means that persons and entities doing business with health-care providers and insurers are going to be held to higher standards. Along with this change comes a requirement to beef up contracts with business associates, and, in some cases, a duty to report information security breaches to the federal Department

of Health and Human Services, as well as provisions for better technology to safeguard PHI. What is the bottom line for employers? COBRA notices will need to be changed to reflect the new, albeit temporary, COBRA rules, and federal standards on the privacy of medical information are stricter. For assistance, contact the Association at 814/833-3200 or 800/815-2660. Dave Dieteman is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division. He assists member companies with their legal needs, including hotline calls, contract drafting and negotiation, employee handbook review and drafting, and selective litigation.

April 2009 > www.mbausa.org > 23

Events

Training Recognition Ceremony

The Manufacturer & Business Association will honor approximately 200 graduates of its training certificate programs, during a special recognition on April 14 at the Association’s Conference Center in Erie. The graduates represent nearly 100 businesses in the Association’s 17-county membership region. For complete photo coverage of the event, please visit the Association’s Web site www.mbausa.org.

Computer Software Specialist - First row, from left: Trish Staszweski, STERIS Computer Software Specialist - From left: Melissa Kobert, AmSafe

Bridport; Beth Hess, Erie Insurance Group; Ashlee Linsted, Accuspec Electronic Services; and Amy Pontillo, Association manager of Computer Training. Not pictured: 23 graduates from 16 companies.

Corporation; Roberta Holdsworth, Erie Management Group, LLC; Pat Stolz and Kristy Respecki, STERIS Corporation; Carol Amolsch, Fisher & Ludlow Inc.; Jeannette Blood, Erie Insurance Group; and Amy Pontillo, Association manager of Computer Training. Back row, from left: Gary Krugger, Erie Management Group, LLC; Deb Murphy, STERIS Corporation; Don Hatheway, Fisher & Ludlow Inc.; Trisha Pursell, Erie Veterans Affairs Medical Center; and Dale Moffett, Riley Power Inc.

HR Essentials Certification - From left: Louisa Marengo-Heifner, Presque Isle HR Essentials Certification - Front row, from left: Becky Pintea, American

Trim; Terri Kerr, Optical Filters USA LLC; Mary Ann Buckley, Ellwood Group Inc.; and Attorney John Onorato, Association vice president and general counsel. Back row, from left: Nicole Clayton, Great Lakes Home Healthcare Services; Ron Sousae, Target Precision; and Polly Momeyer, Erie Homes for Children and Adults.

Downs and Casino; Nancy Edmondson, Dad’s Pet Care; and Association Vice President and General Counsel, Attorney John Onorato.

HR Essentials Certification - From left: Attorney John Onorato, Manufacturer & Business Association vice president and general counsel; Diane Lines, Community Nursing Services of North East; Krystal Carey, Patriot Forge, Bay City Forge Division; Kristy Schnell, Plastikos; Michael R. Carlin, Northwest Savings Bank; and Laura Hamilton, C&J Industries.

HR Essentials Certification - Front row, from left: Gretchen Kuhl,

Manufacturer & Business Association; Elaine Kelvington, Allergy & Asthma Associates of NWPA; Mary Knorr, SPX Flow Control; Andrea Campbell, Erie Institute of Technology; Connie Cook, City of Erie; Barbara Machuga, Springhill; and Attorney John Onorato, Association vice president and general counsel. Back row, from left: Angela Amatangelo, PAX Christi USA; Sue Horton, Altman Hall Associates; Suzanne Fry, Stevens Clogging Supplies; Barbara Turner, Swanson-Erie Corporation; Karen Crump, Bethesda Children’s Home; and Lisa Sackett, Erie Cotton Products.

HR Essentials Certification - Front row, from left: Sharon Pfeifer,

HR Essential Certification - From left: Rose Bruno, Manufacturer & Business

Association; Chris Holmberg, C.A. Curtze Co.; Kathy Miller, Industrial Sales & Mfg.; Joe Nash, Fralo Industries Inc.; and Attorney John Onorato, Association vice president and general counsel. Not pictured: Bridget Trojanowski, ERS.

Meadville Land Service, Inc.; Jack A. Walburn, Pleasant Ridge Manor; and John Onorato, Association vice president and general counsel. Back row, from left: William E. Rabbitt, St. Mary’s Home of Erie; Eileen Flanagan, Maxpro Technologies, Inc.; and Heather Evans, CARON Enterprises Inc.

HR Essentials Certification - From left: Aaron Stankiewiz, Erie

Water Works; Beth Keil, Second Harvest Food Bank; and Attorney John Onorato, Association vice president and general counsel. Not pictured: Jen LaPaglia, Erie Zoo.

Leadership for Team Leaders - Front row, from left: Todd Wilson, Robert

Mrozek, Michael Weaver, Michael Mascarello, Sean Bennett and Jami Reedy, II-VI Corporation. Back row, from left: Kyle Proper, Jim Bish, Scott Peiffer, Todd Cornetti, Jacqueline McMurdy, Laurel Shaffer and Joleen Chapman, II-VI Corporation.

Leadership for Team Leaders - Front row, from left: Jason Boyda, C&J

Industries; Robin Dixon, The Plastek Group; Kate Bender, Mental Health Associates; Jordan Smith, Comfort Care & Resources Inc.; Mary Longiotti and Christine McIntyre, International Waxes; Association Training instructor Lisa DeFilippo; and Dave Henning, C.H. Reed Inc. Back row, from left: Laurie Haibach, International Paper; Bill Culver, Caplugs; Mike Turk and Clint Shaffer, Millennium Inorganic Chemicals; Matt Shilling, Rabe Environmental Systems; and Terry Troup and Doug Parnell, Ridg-U-Rak, Inc.

Supervisory Skills Series - Front row, from left: Chris Sherman and Bob

Emhoff, Clarion Industries; Glenn Fierst and Kevin Marshall, Trail King Industries; and Mark Dehner and Tyler Snyder, Clarion Industries. Back row, from left: Andrej Beug, Clarion Industries; Terry Hockinson and Shawn Simpson, Trail King Industries; and Brian Raybuck, Jeff Yeany, Ryan Eisenman, Dave Lander and Bill Stroup, Clarion Industries.

Supervisory Skills Series - Front row, from left: Wayne Greenthener, Darwin

Shaffer and Harry Slaughenhaupt, C/G Electrodes LLC. Back row, from left: Ron Greathouse, Denny Spangler and Dave Robuck, C/G Electrodes LLC; James Boroi, MPP/Ridgway Division; and Rob Morgan, Atlas Pressed Metals.

Supervisory Skills Series - Front row, from left: Scott King, Triple Nickel;

Mike Pruzinsky, Reed Manufacturing Company; Debbie Chase, STERIS Corporation; Blaine Watson, Riley Power Inc.; Ruthann Pounds, Janitors Supply Company Inc.; and Ryan Learn, Transportation Technologies Inc. Back row, from left: Sam Thomas, Accuspec Electronics; Andy Johnson, Erie Bearings Company; Rick Gibbs, Riley Power Inc.; Gretchen Andrews, Janitors Supply Company Inc.; Don Miller and Donald Youngs, C.A. Curtze Co.

Supervisory Skills Series - Front row, from left: Nicole Skias, Eriez Magnetics;

Carlos R. Menjivar and Salvador Menjivar, Rehrig Pacific Co.; Terri L. Birchard, Edinboro University of Pennsylvania; and Lisa DeFilippo, Association Training instructor. Second row, from left: Glenn Hawkins Jr., Erie Specialty Products; Kory Schreckengost and Juan R. Delgado, McInnes Rolled Rings; Todd Williamson, EmergyCare, Inc.; Debby Masterson and Diane Pirschel, Community Blood Bank of Erie County; Martin Hubert Jr., Corry Forge Co.; Patrick Bailey, Rehrig Pacific Co.; and Brian Tenney, Sisters of Saint Joseph of NWPA. Back row, from left: Christopher Mrozowski, C.A. Curtze Co.; Brian McNamara, Harborcreek Township Sewer Authority; Edward Worthy, The Plastek Group; Al Sassman, McManis and Monsalve Associates; Josh Chesley and Brian Bundy, Rehrig Pacific Co.; Mike Lowe, Snap-Tite Inc.; Pat Traut, Russell Standard Corporation; and David King, McInnes Rolled Rings.

Supervisory Skills Series - Front row, from left: Brian Gill, Scott Rhodanz

and Jeff Slater, Integrated Fabrication & Machine Co.; Tim Weil, Ellwood City Forge; and Gary DeBlasio, Ellwood. Back row, from left: Neal Murray, Cygnus Mfg.; Mark Posey and Jim Black, Integrated; and Paul Herrmann, Herrmann’s Water Inc.

Supervisory Skills Series - First row, from left: Jeremy Thompson, Millcreek

Lean Six Sigma - Front row, from left: Maria Porter, C&J Industries; Dana Crowdus

and Beth Sahlman, Erie Veterans Affairs Medical Center; Carol Davidson, Erie Insurance Group; and Donna Deeter, Channellock Inc. Back row, from left: Gerald J. Erickson, Better Baked Foods, Inc.; Alan W. Shay, C&J Industries; and Association instructor Ray Davis, Supply Velocity.

Paramedic Service; Judith Weber, ACL-CPI; Nona Weaver, Accuspec; Lisa Smith, Millcreek Paramedic Service; Vera Bombardier and Barbara Marshall, ACL-CPI; Jeremy Dylewski, General McLane School District; and Association Training instructor Rory O’Donnell. Second row, from left: Miles Kidder, Electric Materials Company; Michael Gambatese, Millcreek Paramedic Service; Lynn Kessler, Hand & Upper Body Rehabilitation Centers; Phil Glass, Transportation Technologies Inc.; Lisa Trohoske, Triple Nickel; Jeremy Morey, Ridg-U-Rak, Inc.; and Timothy O’Sullivan, ACL-CPI. Back row, from left: Debbie Phelps, Dad’s Pet Care; James R. Gelsie, Electric Materials Company; Brian Szoszorek, EBC Industries; Richard Stalter, Electric Materials Company; Steve Gerg, C.A. Curtze Co.; and Rich Palmer and Dave Voelker, FMC Technologies.

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Tech News

EDITORIAL > by Joseph Snyder

Now is the Perfect Time to Reinvest in Your Business Despite the current economic conditions, there are things that you can do as a business owner or manager to improve your companyâ&#x20AC;&#x2122;s position with existing and potential customers. Buying decisions are often made based on the smallest details, and minor investments found in this article could make a difference in attracting future business. The characteristic that distinguishes you from your competitors might be the ability to show your customers that you have a clear view and firm understanding of everything that goes on in your manufacturing process. This can be as simple as accurate work flow diagrams, and as complex as complete genealogy in the manufacturing of products. Your existing staff and equipment may be in a position to help you with assistance from a third-party integration firm that can recommend the different ways to improve your process control systems and manufacturing processes. For example: Exploit Existing Investments in Machinery and Technology Hardware that you have purchased in the last 5 to 10 years might put you in a position to offer your customers the visualization that will differentiate you from your competitors. Original equipment manufacturers (OEMs) have trended toward offering off-theshelf technology in their control schemes. This movement away from proprietary controls means

that equipment you already own is capable of connecting to data collection and analysis systems. Furthermore, micro controllers have grown in their ability to connect to numerous devices so inexpensively that adding supervisory systems is neither the work nor the expense that it once was. Retrofit Existing Equipment Rather than Purchase New Many OEMs or third-party suppliers now offer â&#x20AC;&#x153;bolt inâ&#x20AC;? upgrade packages to equipment that was previously proprietary. Machinery retrofit companies or integrators can assist with upgrades where packaged options are not available. Take Advantage of Training Opportunities Business managers often note that skilled employees are the source of ideas for improvement projects and the key to the successful implementation and maintenance of advanced technology. Companies routinely spend countless HR dollars trying to locate perfect employees to perform these functions for them. You can leverage a strong integration partner to assist you in the further development of your existing engineering and maintenance staff. Providers can work with you to develop highimpact training that helps your employees better understand the relationship between plant technology and proper production. Other training can be tailored

to quickly identify and minimize downtime through improved maintenance procedures. All of these efforts assist you by fostering the skills required to effectively manage modern equipment and processes in-house. Conclusion The key is to continue moving forward despite the current economic challenges. A strong and responsible integration partner will recognize the hardships facing manufacturers, and will help you find ways to advance your position even in lean times. You may find that the improvements you make now in your processes and personnel will help you stand out to your existing and future customers as they evaluate their relationships going forward. For more information on how a third-party integration firm can assist your business, contact Joseph Snyder at Process and Data Automation at 814/866-9600 Ext. 221 or joe@processanddata.com.

Joseph Snyder is the president of Process and Data Automation, an industrial controls and controls-related data service integration company. Based in Erie, they service industrial and municipal clients regionally and throughout North America.

April 2009 > www.mbausa.org > 27

In Memoriam ASSOCIATION PAYS TRIBUTE TO TWO ERIE INNOVATORS The Manufacturer & Business Association recently mourned the loss of two Erie-area businessmen and innovators — John Kanzius, the longtime manager and co-owner of Jet Broadcasting Co. who was the nationally known pioneer of a device designed to destroy cancer cells; and Patrick S. Horwath, co-founder and president of Ace Viking Electric Motor Co. Inc. Kanzius, who passed away February 18, at the age of 64, had been diagnosed in 2002 with chronic lymphocytic leukemia, and, while undergoing chemotherapy, began developing a way to use John Kanzius with Roar on the Shore grand marshal Peter Fonda, and Jim Rutkowski Sr. and his son, Charlie, at radio waves to destroy cancer cells. Industrial Sales & Mfg. in 2007 in Erie.

EDITORIAL > Contact: Karen Torres

His device garnered national attention, and community support, and was the first charity chosen to benefit from the Roar on the Shore® bike rally in Erie, which raised $52,000 for the cause in 2007. Kanzius’ device is currently undergoing tests at the M.D. Anderson Cancer Center in Houston and the University of Pittsburgh Medical Center. Horwath, 60, who passed away February 13, was the co-founder of Ace Viking Electric Motor Co., Inc., founded in 1979. Ace Viking is now the oldest electric motor repair business that has been in continuous operation in Erie, assisting not only Erie’s largest employers, but many of its smallest.

Patrick S. Horwath

According to a company statement, “Pat will be sorely missed by his family, friends and co-workers. The ideals and principles he instilled in the company will remain as his legacy. In 30 years of serving the community, he was always proud of where he worked and was able to look every customer in the eye knowing he did the best for them that he could.”

Support the 2009 ArtsErie United Fund @ Work When your company participates in the ArtsErie Workplace Giving Campaign, each employee who contributes $25 or more will receive a voucher for 2 tickets to an upcoming performance.

www.artserie.org • (814) 452•3427

28 < www.mbausa.org < April 2009

Tony Oshlick Graphic Art Sco$ Enterprises

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Now that National City is a part of PNC, the whole really is greater than the sum of its parts.

Named Middle Market Investment Bank of the Year, Investment Dealersâ&#x20AC;&#x2122; Digest (2008)

Ranked No. 1 lead arranger of middle market loan syndications in the United States, Loan Pricing Corp. (2008) Named one of The BusinessWeek 50, BusinessWeek (2008) 96% of middle market clients are â&#x20AC;&#x153;Highly Satisfiedâ&#x20AC;? with their PNC Relationship Manager, PNC Middle Market Client Satisfaction Survey (2007)

Today PNC is the #1 syndicator of middle market loan transactions in the United States. But credit is only part of the story. Underpinning our success at building deep and lasting relationships with middle market clients is our breadth of capabilities â&#x20AC;&#x201D; including extensive treasury management, capital markets and international banking services â&#x20AC;&#x201D; many of which have been tailored specifically for the middle market audience. And through PNCâ&#x20AC;&#x2122;s Harris Williams & Co., IDD magazineâ&#x20AC;&#x2122;s 2008 Middle Market Investment Bank of the Year, we offer M&A advisory services to the middle market that are among the best in the nation. PNC is an industry leader in many other target markets as well. Our client list includes more than one-third of the FORTUNE 500 as well as thousands of real estate, healthcare, government, higher education and not-for-profit entities. All of these clients, including many of the nationâ&#x20AC;&#x2122;s largest competitors in their respective specialties, benefit from PNCâ&#x20AC;&#x2122;s deep industry knowledge and our sophisticated capital raising, treasury management and capital markets capabilities. In short, now that National City is a part of PNC, itâ&#x20AC;&#x2122;s no longer just business as usual. Itâ&#x20AC;&#x2122;s business better than usual.

Keep up to date with all the exciting news on the National City-PNC transition at www.welcometopnc.com.

*According to FORTUNEÂŽ magazine, March 17, 2008 issue. Banking and lending products and services and bank deposit products are provided by PNC Bank, National Association, PNC Bank, Delaware and National City Bank, which are Members FDIC. Merger and acquisition services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. is the trade name under which Harris Williams LLC conducts its business. Lending products and services require credit approval. ÂŠ 2009 The PNC Financial Services Group, Inc. All rights reserved.

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Named one of Americaâ&#x20AC;&#x2122;s Most Admired Companies, FORTUNEÂŽ magazine (2008)*

Whether you currently have a relationship with National City or are considering establishing one, we want you to know: Now that National City is a part of PNC, your opportunities have just expanded. Because so have our capabilities. PNC competes to win in the middle market, where we are proud to be one of the leading credit providers to middle market companies across the country.

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