J anuar y201 8
CELEBRATE OUR 30TH YEAR! Register as a new subscriber to the FREE digital edition of the Business Magazine and be entered into our 2018 raffle drawing! Winners will be announced at the end of each month! The Business Magazine is the premier monthly member publication of the Manufacturer & Business Association and the comprehensive news source for the human resource, legal and legislative issues facing employers today. Among its 15,000 readers are business owners, CEOs and top executives throughout central and northwest Pennsylvania, as well as northeast Ohio and western New York. Read the latest issue on www.mbabizmag.com.
REGISTER NOW to receive our digital edition. YES! Please send me the free digital edition of the Business Magazine each month! Name: Company: Email:
Phone:
PLUS, I’d also request that digital copies of the Business Magazine be sent to the following recipients: Name:
Name:
Company:
Company:
Email:
Email:
Phone:
Phone:
Name:
Name:
Company:
Company:
Email:
Email:
Phone:
Phone:
Please return this form to the MBA at 2171 West 38th Street, Erie, Pa. 16508, fax back to 814/833-4844, scan and email to ktorres@mbausa.org or sign up online at www.mbabizmag.com. Thank you!
VOL. XXXI NO. 1 | JANUARY 2018
A CELEBRATION OF BUSINESS A recognition of leadership and growth
FEATURES FEATURE STORY | WHAT’S INSIDE
3
A GREAT START TO 2018 MBA Business Magazine marks 30th anniversary.
COVER STORY | LOCAL PROFILE
4
A CELEBRATION OF BUSINESS — A RECOGNITION OF LEADERSHIP AND GROWTH
Hear from some of the MBA member companies, which have achieved such business longevity and success — and are doing it right here in northwestern Pennsylvania.
SPOTLIGHT Q&A |
17
DEPARTMENTS
SPECIAL SECTION
22
HAPPY ANNIVERSARY
BUSINESS BUZZ WHAT’S NEW
26
23
PEOPLE BUZZ
24
HR CONNECTION
28
HR Q&A
AWARDS AND PROMOTIONS
GET ANSWERS
C. Bruce Kern II, president of Curtze Food Service, shares his thoughts on the sixth-generation, family owned company’s 140th anniversary as a broadline food distributor based in Erie, Pennsylvania.
EDITORIAL HEALTH MATTERS | SOLUTIONS
The Manufacturer & Business Association recognizes the hundreds of MBA member companies marking a milestone anniversary in 2018.
WORKPLACE TRENDS
FAMILY OWNED BUSINESS
19
How wearable fitness technology is helping to track the way to better health. Stephen T. Doyle
LEGAL BRIEF | COMPLIANCE READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
21
Why the legal system is necessary for commerce. Matthew B. Wachter
ON THE HILL | REFORM
29 Executive Editor Karen Torres ktorres@mbausa.org Contributing Writers Jessica Barnett Stephen T. Doyle Matthew B. Wachter
Feature Photography American Hollow Boring Co. Caflisch Pallet & Wood Services ErieTec Essentra Components Micro Mold Penn-Union Additional Photography iStock Photography
Guest columnist Jessica Barnett of the Commonwealth Foundation discusses why we need to end political privilege to unleash growth in the Keystone State.
Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org Design, Production & Printing Printing Concepts Inc. printcon@erie.net
On the Cover: A celebration of business: American Hollow Boring Co., Caflisch Pallet & Wood Services, ErieTec, Essentra Components, Micro Mold and Penn-Union are among the hundreds of Association member companies marking milestone anniversaries in 2018. For full story, see page 4. 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 2018 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.
mbabizmag.com • JANUARY 2018
1
Bring Your Conference To Erie, PA
Whether it’s a board meeting for 10, a military reunion for 50, or a convention for 4,000, make VisitErie your first call.
FREE CONVENTION SERVICES Hotel Proposal Gathering Site Visit Coordination Press Release Distribution Promotional Materials VIP Gift Baskets Name Badges
Contact Joe Holody 814.454.1000 x 126 | jholody@visiterie.com | visiterie.com/meetingplanner VISITERIE MAJOR SPONSORS:
FEATURE STORY | WHAT’S INSIDE
A Great Start to 2018 MBA BUSINESS MAGAZINE MARKS 30TH ANNIVERSARY There are many reasons to be excited about the start of a new year. It’s the chance to turn the page and begin a new chapter. But for many employers, it’s also a time to look forward and to celebrate the achievements of the past. This year, we are honored to recognize those MBA member companies that are marking milestone anniversaries – from 10 to 170 years — as well as the MBA’s Business Magazine, which is commemorating its 30th anniversary in 2018.
For the past 30 years, the Business
top right (center) and featuring the story,
Services, ErieTec (formerly Erie Bearings),
Magazine has carved a special niche in our
“Clearing the Air on Workplace Smoking”
Micro Mold, American Hollow Boring Co.
region for business news. We’ve shared
is just as relevant to employers now as
and Essentra Components. We’ll also
your accomplishments, from awards and
it was then. And, over the years, we’ve
hear from Curtze Food Service President
promotions to new acquisitions, products
had the task of tackling key business
C. Bruce Kern II on the sixth-generation,
and services. We’ve also been thrilled —
issues that are facing employers, but
family owned company’s 140th year as a
and humbled — to be able to share your
also the chance to showcase many
broadline food distributor headquartered
stories with all of our members. And we
of the companies that are creating,
in NWPA.
plan to continue to that story sharing well
innovating and investing right here in our
into the future.
membership region. These employers
And that’s not all. Be sure to take a look
Thirty years would not be possible,
represent the best of the American free-
however, without the strong foundation on which the magazine was launched,
enterprise system and the impact that businesses can have on prosperity, job
at our special section recognizing the hundreds of other MBA members that are marking their milestone anniversaries in 2018. The Business Magazine is proud to
thanks to former Association Executive
creation and economic growth.
Director Claudia Haller in 1988. Without
In this special anniversary edition of the
sharing their stories — and yours —
her foresight and vision, the MBA Board
Business Magazine, we plan to take a closer
for years to come!
of Governors and the MBA’s succeeding
look at some of the companies that are
leadership, the magazine would not
celebrating their milestone anniversaries
be what it is today — a leading B2B
this year, including such companies as
publication for Association members and
Penn-Union Corp., Caflisch Pallet & Wood
be among them, and we look forward to
employers throughout the tri-state region. That inaugural issue of the magazine (then the Monthly Business Report), shown at
Longevity Leads to Success
mbabizmag.com • JANUARY 2018
3
A CELEBRATION OF BUSINESS A recognition of leadership and growth
There are no hard and fast rules for business longevity, but when it happens, it should be celebrated, especially when you consider the odds faced by many entrepreneurs. According to statistics from the Edward Lowe Foundation, more than half of startup businesses will fold within three years; 75 percent won’t last five years. Yet, despite those ominous figures, the Small Business Administration estimates a quarter of small employers (less than 500 employees) are more than 20 years old. Why do some of these businesses thrive while others don’t? There is no clear-cut answer, but many of these longtime companies have found ways to develop their visions into working business models, ensuring that their companies will gain the staying power to succeed well into the next decade. Often, those who have “made it” share some similar business practices that have enabled them to endure and succeed through the most challenging of business cycles. Here, we’ll highlight some of the MBA member companies that have achieved such business longevity and success, and they are doing it right here in the tri-state region.
View the full list of MBA member companies celebrating milestone anniversaries in 2018 on page 26.
According to Ryan Katen, president and general manager of tool and moldmaker Mico Mold, which is marking its 40th year of continuous operation in Erie, “Micro Mold’s success can be attributed to a lot of hard work and strong, talented employees. The tool-and-die market is extremely competitive, so we try to stay abreast of the evolving technologies to remain efficient and in the position to compete globally. Katen further states, “Continuous investment in the business and employees has enabled us to stand the test of time and position ourselves to continue to grow in the future.”
4
JANUARY 2018 • mbabizmag.com
Geoff Ginader, president of American Hollow Boring Co., also shares a similar view. The Erie-based company, which is celebrating its 100th year in 2018, touts itself as pushing the leading edge of deep-hole drilling, trepanning, honing and machining services. “American Hollow Boring Co. is a great workshop,” notes Ginader. “It is great because of our focus on our customers, dedication of our employees, and the tools and know-how that we have developed as specialists in the unique area of deep-hole machining.” In the business world, longevity and success often go hand in hand, but it also requires both meeting and exceeding expectations. As Laura Caflisch of Caflisch Pallet & Wood Services, headquartered in Clymer, New York, explains, “making sure our customers have their product when they need it and surrounding ourselves with good people” is critical to the operation’s 25th anniversary and long-term viability. “Both have become such a vital piece in today’s industry,” she states. At Edinboro-based Penn-Union Corp., a designer, manufacturer and marketer of electrical power connectors, grounding products and accessories, its focus has always been on both quality and service throughout its 90-year history. “Penn-Union has always, even during turbulent times, designed and manufactured high-quality products that can be counted on to do the job each and every time,” explains President Brian Cullen. “Quality is not a given in our industry, but it is for us, and our recent success is built upon this quality platform. The credit begins with the full support of our ownership and followed by the hard work of all our associates.” Most employers would agree that their businesses are only as good as the clients they serve. The secret to success is building relationships that go beyond a one-time project and provide real value on an ongoing basis. For instance, ErieTec, Inc. (formerly Erie Bearings), which was founded in 1958 and today is a leading distributor of mechanical and electrical motion control products, touts itself as a company that is “more than just bearings.” “ErieTec’s success is owed to our excellent employees and loyal customers,” states Marketing Specialist Keisha Lyle. “The local industrial community has trusted for 60 years that we provide expert solutions, and the partnerships we’ve made are what keeps us going.”
A Major Milestone
Experts say that recognizing a business anniversary goes a long way to help with not only business relationships, but it also can help boost employee morale and build brand confidence. “It means a lot to the employees to see that we have been able to survive and strive through the good and bad times,” explains Katen. “We have always been able to move forward and continually improve our business and our product. It is also important to our customers that they can rely on our company and that we are going to be there in the future to grow with them as their needs increase.” For Essentra, an Erie-based manufacturer of injection molded and dip molded plastics, marking its 50th anniversary “represents the dedication and hard work from all of our employees throughout history,” notes General Operations Manager Antonio Alva. “It shows the strong foundation of our company and industry. It emphasizes our commitment to the community and its growth. It is a year to celebrate all of our past achievements and to encourage all of us to continue on the path toward success for many more years to come.” ErieTec also believes the value of recognizing such a milestone. “Our employees are our greatest resource,” says Lyle, “so it’s extremely important that we recognize and celebrate the anniversary with them – we wouldn’t have made it to 60 years without their hard work and dedication.” Penn-Union has even taken that messaging a step further. “It is very important for the confidence of our people, especially given the recent negative local manufacturing news in our region,” says Cullen. “Our tagline is ‘Connecting Your Tomorrow,’ but this assertion only works if we have longevity and current success to back it up. We will be there tomorrow for our customers and associates, and that gives all of us the determination to keep working hard.”
Ready for the Future
Still, longevity doesn’t mean anything if a company isn’t positioned for the future. To succeed in these extraordinary times, experts say that companies must continually challenge their systems, processes and strategies. That includes the way they think about their businesses and their customers – and their business models. “The future looks bright for Micro Mold,” says Katen. “We are diversified in the tool and die industry across many markets. We continually invest in equipment, technology and employee training so we can be stronger and more competitive in the future.” At American Hollow Boring Co., Ginader is proud of where the company has been and where it is headed. “Our founders would marvel at the accomplishments of the organization they conceived 100 years ago,” he says. But “with training and continuous improvement,” Ginader continues, “our people and workshop will remain prepared to see industry challenges as our opportunities.” Caflisch Pallet & Wood Services, for one, is already planning a building expansion and adding new services in 2018, while ErieTec and Essentra are also companies with room to grow. “We continuously investigate new product lines that can bring value to our customers,” notes Lyle of ErieTec, “and are always looking to expand the number of industrial operations we provide with expert solutions.” “In Erie, we continue to increase the size of our operations in all areas,” states Alva of Essentra. “We have short- and long-term strategies focused on strengthening partnerships with current customers, as well as growing our market share.” For Penn-Union, the future also looks “very promising.” We have built a solid platform for continued growth,” notes Cullen, “and we are excited with what we have planned for 2018 and beyond.” With a committed leadership and focus on growth, there are many reasons to be excited about small businesses in the future.
Age and Small Business
The typical small firm is relatively more established. About a quarter of small employers (less than 500 employees) are more than 20 years old. The median age of a small employer business is just under 10 years old; the mean age is even older than 10 years but data limitations do not allow an exact figure to be calculated. (Source: Census Bureau, Survey of Business Owners) Most existing small firm employment is from older firms. More than 50 percent of small firm employment is in firms that are over 15 years old. Only 21 percent is in firms that are 5 years old or younger. (Source: Census Bureau, Business Dynamics Statistics) Small businesses’ percent of employer firms decreases with age. About a third of small employer firms are 5 years old or younger, about a third are 6 to 15, and about a third are 16 or older. By contrast, four out of five large businesses are 16 or older. (Source: Census Bureau, Business Dynamics Statistics)
mbabizmag.com • JANUARY 2018
5
shared priorities “ My former bank changed. It was clear their priorities and mine were not the same. It was time for a change. I feel like my business matters at Marquette. They proactively call me, and when I call them, I get the answers I need to keep my business growing.”
Blair Learn, owner PHOENIX LASER SOLUTIONS
Banking approvals in days, not weeks. Support you can expect when the unexpected happens. People who understand opportunities are fleeting and make yours a priority. Business bankers who don’t define success between the hours of 9-5 any more than you do. Shared priorities. It’s a difference you can expect when your decision is made locally, by the area’s only hometown-headquartered bank.
Be Mpowered.™
g n i t a r Celeb
s r a e Y 0 0 1
Leading Machine Shop Stays on the Cutting Edge Fifty years ago, American Hollow Boring Co. (AHB) was planning its 50th anniversary dinner dance. The planning committee was featured in the local paper. The year was 1968 and, in the 50 years leading up to that time, AHB had become a large specialized operation for deep hole drilling and boring. The founders were Charles Mueller and John Gillespie. They met on a trolley in Erie as the story goes, and they each brought complementary skills in sales and drilling technology. The company was incorporated in 1918 and established on the site of the current facility. Charlie Mueller outlived John Gillespie and was president from 1938 until succeeded by Benjamin Ginader in 1966. Ben had been a preacher’s son and a photographer before becoming John’s son-in-law and joining the company. In 1980, John Ginader was named president. In 2008, Geoff Ginader became the fourth-generation president of American Hollow Boring. His sister Aimee Ginader Gevirtz now serves as chief financial officer. More than a family business, AHB recognizes the dedicated leadership of its officers over time, including Arthur Sherriff, Sheldon Kaercher, Jerry Clover, Peter Dion, Tom Davis, Jeff Maries, Naomi Milner, Tim Kaercher, George Jester and Brad Kegerreis. “We wish to thank our many employees in management and operations because their work has made this milestone possible,” states Geoff Ginader. Geoff Ginader, President
The early ‘60s brought two key business segments including highpressure vessels and pipe molds. Then, the first trepan machine was introduced in 1963. Trepanning is a highly productive deep hole drilling process that produces a core. The combination of cemented carbide cutters and innovative tooling was a great boost to productivity that drove further growth. Expansions of production facilities in 1954, 1980 and 1990 have brought a total of 60,000 square feet under one roof
for the machine shop and storage of customer goods. While more trepanning machines were added, the old drilling methods also have been preserved to provide the right combination of reliability and skilled hollow bore solutions. AHB also maintains unique capabilities in honing, manual machining and CNC machining for a full-service deep hole machining shop. As a “high mix, low volume” job shop, American Hollow Boring Co. is an ISO 9001:2008 certified machine shop performing deep hole boring, trepanning, honing, manual machining and CNC machining to customer specifications. The certification is a mark of its commitment to satisfy its customers who work in industry across town and to those depending on AHB’s work for critical missions around the world. From rough drilled bars to precision cylinders, AHB uses the word “true” to describe the accuracy of the holes it produces. “We ask how true the bars are and measure each part carefully,” says Ginader. “Although the idea of a bar with a hole seems simple, we know that every inch of a long bore can vary and must meet specifications.” The largest cylinder shown above is 20 inches bore size by 240 inches long and varies in wall thickness less than .010 inches at every point along the length. Also pictured are machine spindles, a stainless steel hydraulic accumulator and pipe molds. These are just a few examples of how AHB brings together technology and skill with great results. “Beyond the enduring story of the company, we are in essence a great workshop,” says Ginader. “In our vision, a great workshop is a place where skilled people can practice their trade. The environment supports this, and focus can be brought to difficult problems. The challenge we have in industry today is in building and maintaining skills in the workforce. A great workshop does three things while employing these skills: helps each employee to reach potential, fully utilizes its equipment and attracts customers who are satisfied by work finished properly. With this focus, our workshop itself will reach its potential now and in the next 100 years.”
1901 Raspberry Street, Erie, PA 16502 814/452-3664 Toll-free: 800/673-2458 sales@amhollow.com
Judy Rosatti Manufacturer & Business Association EnergyAdvisors Phone: 814/833-3200 or 800/815-2660 jrosatti@mbausa.org
s r a e Y 0 9 g n i t a r Celeb 90 Years of Connecting Your Tomorrow With a history dating back to 1928, Penn-Union has maintained an excellent reputation as a U.S. designer, manufacturer and supplier of high-quality electrical power and grounding connectors and related products. These products are relied upon to consistently perform in the most demanding applications, meeting the needs of today and tomorrow for various markets. Through a worldwide network of manufacturing representatives and wholesale electrical distributors, Penn-Union is able to service the distribution, construction, utilities, power transmission, industrial, telecom, renewable energy, aerospace, rail and mass transit, and MRO markets. Commitment to Quality For the last 90 years, Penn-Union has been committed to total quality and has acknowledged that the process of achieving this goal is neverending; it requires a constant commitment to excellence by everyone within the corporation. Penn-Union constantly measures success by how well the company meets and exceeds customer expectations. Penn-Union Capabilities Total quality commitment begins with both the materials and processes utilized to manufacture Penn-Union products. Over the years, major capital investments have been made to ensure process capabilities, along with continual investment in the foundry operation. Through the use of computer-controlled, automated molding equipment, Penn-Union is able to make quick changes to patterns – allowing for both short and long runs of cast copper and aluminum products. This results in the same high degree of quality and process repeatability with no delays. Penn-Union also has mastered cold-forming (extruding, upsetting, coining and piercing) technology. As a result, dimensionally consistent, high-strength products, such as copper split bolts, copper press-ons and silicon bronze hardware, are able to be produced. Furthermore, in-house machine and tool design expertise provide the ability to quickly introduce specialty production equipment, which combines
a number of manufacturing operations to improve productivity and product quality. Penn-Union’s fully equipped testing laboratory is an integral facet to the engineering and design program. Routine electrical and mechanical evaluations are conducted in order to maintain a variety of standards. This in-house testing capability allows the company to not only engineer new product designs, but also to prove its quality with required listings, certifications, or recognitions in a more efficient way. Quality Service Guaranteed Last, but certainly not least, is Penn-Union’s unwavering dedication to quality service. At Penn-Union, customer service is a responsibility that is taken upon by every single individual within the operation. An integral part of this company’s focus starts with “partnering” with the customer. Penn-Union employees strive to involve themselves with the customer and his/her needs at the earliest possible time. As a result, Penn-Union is able to establish a lasting partnership whereby quality products are provided on a timely basis and at a competitive value. Looking Ahead It is through Penn-Union’s commitment to quality that the company has been able to build a solid platform for a promising future. Penn-Union’s success and longevity is what gives this company the confidence and determination to continue to grow and provide solutions for its valued customers. For 90 years, this manufacturer has been “Connecting Your Tomorrow,” and it plans to do the same moving through 2018 and beyond.
229 Waterford Street, Edinboro, PA 16412 814/734-1631 www.penn-union.com
s r a e Y 0 6 g n i t a r Celeb ErieTec - A New Name for a New Era When Norman E. Ketchel established a small bearings distributor in Erie 60 years ago, he might never have imagined that it would grow into a multimillion-dollar, full-line mechanical and electrical industrial supplier with six locations across Pennsylvania. Then again, maybe that’s exactly what he hoped for; he was a driven, dedicated man. Today, what began as Erie Bearings Company is now ErieTec, Inc., owned and operated by his children, Michael L. Ketchel and Judith E. Miller. The name change was very recent – just implemented in November – but it had been a long time coming: “We’ve been more than just bearings for quite a while,” President Michael Ketchel says. “It was time our name reflected that.” While the company began with its exclusive focus on bearings, it grew significantly over the years. Over time and with excellent staff and training, ErieTec became a full line solutions-based supplier, a company customers could trust to find their cost-savings opportunities across the industrial spectrum. Michael L. Ketchel, President
Sixty years of experience has given ErieTec the ability to offer solutions not only in a wide range of products, but also across numerous industries. In the Pennsylvania-Ohio-New York area, there are many prevalent industries – food and beverage, lumber, oil and gas, plastics, steel and metal, paper products and machine shops – and ErieTec has experience with each and every one of them. “The things that set us apart from the big ‘chain’ guys are our experience and expertise. We don’t just take your orders; we can assess your operation and tell you which sensor or coupling or motor is best for your application,” Ketchel says. Recommendations from ErieTec account managers and solutions specialists come largely from their own experience – in addition to the extensive training each of them receives. Upon hire, each ErieTec expertin-the-making must complete five weeks of electrical and mechanical training to lay a proper foundation of knowledge. From there, monthly
training seminars keep each employee up to date on the latest products and solutions. Whether you’re working with someone who’s been in the field 30-plus years or someone fresh to the industry, ErieTec is full of experts who are all focused on one thing: the customer. ErieTec’s mission statement begins, “Our mission is to provide technical solutions that improve our customer’s profitability, enhance their efficiencies and increase their employees’ safety.” The customer’s wellbeing is the sole focus of ErieTec’s operations. Whether they’re offering ways to cut energy costs, reduce downtime, increase component life or simply suggesting a more efficient inventory plan, ErieTec builds its success on its customers. “As odd as it sounds, we actually want to sell you less,” Ketchel explains. “We want to earn your business by proving that we bring value to your company.” The customer-first business model has been at the heart of the company for all 60 years of its operation, and that contributes to its constant growth. While Erie Bearings Co. was just one small shared building at its inception, ErieTec is now six full branches, each filled with regional experts and market-specific inventory. Located in Erie are the corporate headquarters, Erie branch office and EB Controls, the panel-building division of ErieTec. Other branches are located in Altoona, Indiana, Meadville, Pittsburgh and St. Marys. Marking the 60th anniversary of the company is an incredible joy for each of ErieTec’s employees, and, of course, its owners. On the future of ErieTec, Ketchel states, “We’ve always been a growing company and that’s what we’ll continue to be.”
1432 E. 12th Street, Erie, PA 16503 814/453-6871 www.erietecinc.com
s r a e Y 0 5 g n i t a r Celeb 50 Years of Manufacturing Excellence in Erie Essentra Components has come a long way from its days as a local threeman shop. In 1968, those three men formed their own business, dubbed Alliance Plastics. The company became a leader in the production of injection molded and dip molded plastics for the automotive, heavy equipment, and oil and gas industries. In 1987, Alliance Plastics was acquired by the UK conglomerate, Bunzl, and over the course of the next 27 years, grew significantly through acquisitions and expansion of its distribution sites, spread throughout the United States, Canada and Brazil. In 2013, Alliance Plastics went through a major rebranding exercise intended to underscore the increased diversity of its product portfolio and customer base. Alliance Plastics became Essentra Components, a global provider of essential components and solutions. In 2018, Essentra Components will celebrate “50 Years of Manufacturing Excellence� in the Erie area. Through many years of acquisitions, mergers and changes, one thing remains constant: Essentra is committed to advancing its manufacturing capabilities in Pennsylvania. Products & Capabilities Essentra Components offers a wide range of products like caps, plugs, and other protection and finishing products to original equipment manufacturers (OEMs) across a variety of industries. The primary plastics manufacturing plant is located in an 80,000-squarefoot facility on Station Road. Operations include injection molding, die cutting, tool repair and storage, along with administrative business offices. Essentra Components also has an 80,000-square-foot warehousing facility located on McClelland Avenue that houses shipping and receiving departments along with dip molding operations. With more than 75 injection molding machines, plus dip molding and secondary operations, Essentra Components produces more than 3 million parts per day. Why Customers Choose Essentra Components Building on 50 years of specialized manufacturing expertise, custom design experience and global network capabilities, Essentra Components delivers value to customers with a foundation of technical knowledge.
Essentra employs more than 200 people in Erie, Pennsylvania. Advanced product development and manufacturing experience combine with a logistics infrastructure to offer customers thousands of off-the-shelf products or custom solutions to meet their needs. In 2017, Essentra began transitioning to state-of-the-art, all-electric machines. New technology will improve safety and ergonomics for employees, as well as reduce the emissions footprint for the environment. Significant investment in information technology, machinery, tooling and facilities, as well as enhanced commitment to health and safety drive ongoing improvements and help to preserve the longstanding legacy of plastics manufacturing in the area. Manufacturing Excellence Essentra Components strives for excellence in all operations. The most important asset of the business is its dedicated and experienced workforce. Employees are encouraged to help create an environment, which fosters engagement, pride and ownership. Essentra employs more than 200 people in Erie and plans to continue growing that number in the coming years. The company is also committed to creating strong partnerships in the community and to supporting education. Essentra offers learning and hands-on opportunities to local students in order to grow the next wave of manufacturing excellence in Erie and beyond.
3123 Station Road, Erie, PA 16510 800-847-0486 www.essentracomponents.com
s r a e Y 0 4 g n i t a r Celeb A Legacy of Excellence Erie, Pennsylvania is a region best known for long winters and a rich history of manufacturing. Arguably, the backbone of Erie’s manufacturing sector rests on the shoulders of tool and die. At one point, Northwest Pennsylvania was known as the tool and die capital of the world. Today, Micro Mold Co., Inc. still leads the pack as it embarks on its 40th year. Micro Mold was established by Tim Katen and Dave Mead in 1978 to build the most technically demanding and the highest quality plastic injection molds. The two entrepreneurs invested their personal life savings into the business and officially began Micro Mold in a small, rented garage of 1,125 square feet on Filmore Avenue. For the first few weeks in business, the company didn’t even have heat or a phone line. There were multiple points during those early days when the future of Micro Mold was severely at risk due to the deep recession of the early 1980s coupled with soaring interest rates. However, Tim and Dave remained committed to make Micro Mold a success. They were able to survive through their passion for excellence in service, advanced engineering, as well as their conservative fiscal management. Ryan Katen, President and General Manager
Tim Katen reflects on those early years: “Dave and I were working full time at our regular jobs, then working nights at Micro Mold. We had no heat so I remember running the Bridgeport wearing a winter coat and gloves. Also, my wife was pregnant with our second child, and I remember asking our neighbor if my wife could call their phone in case she went into labor. As I look back on 40 years, I’m grateful for those early days because it’s given me such a sense of appreciation.” Through their perseverance, Micro Mold began to grow and gain recognition as a premier tool and die manufacturer. Eventually, the company was moved from Filmore Avenue to its current location on Pittsburgh Avenue, in order to house its growing number of employees and machining equipment.
became increasingly frequent. Tim and Dave decided to purchase an injection molding machine, initially as a means to provide first-piece sampling and mold troubleshooting to their customers. This added service became the starting point of Micro Mold’s sister company, Plastikos Inc., which was founded in 1989 as a premier custom injection molder. Throughout the ‘90s, Micro Mold saw exceptional growth with the telecommunications boom; however, this industry became extremely susceptible to overseas manufacturing. In 2001, much of the work from the telecom OEMs had shifted to overseas manufacturing, and many mold makers, including Micro Mold, were once again faced with challenging times ahead. Micro Mold once again persevered through this difficult period and was able to rely on their mold making experience in the medical and electronic connector industries, which is where the company was originally rooted in. In 2009, Tim and Dave announced their retirement from Micro Mold and handed the reins to the second generation of owners, who had already held management roles within Micro Mold. The ownership of Micro Mold transitioned to Ryan Katen, Philip Katen and Rob Cooney. The transition into the second generation of owners meant tapping into new technologies and new industries. The customer portfolio within the medical device industry alone has grown significantly, specifically in: eye care, medication delivery, insulin therapy, enteral feeding and endoscopic treatment, among others. Ryan Katen confidently states, “The future looks bright for Micro Mold. We are diversified in the tool and die industry across many markets. We continually invest in equipment, technology, and employee training so we can be stronger and more competitive in the future. It means a lot to the employees to see that we have been able to survive and strive through the good and bad times. We have always been able to move forward and continually improve our business and our service. It’s also vital to our customers to know they have a trusted business partner who is going to be around in the future and continue to grow.”
As the years passed and Micro Mold’s reputation as a precision mold manufacturer continued to grow, the demand for sampling and later production requests
4820 Pittsburgh Avenue, Erie, PA 16509 814/838-3404 www.micromolderie.com
s r a e Y 5 2 g n i t a r Celeb A Company Built on Hard Work, Determination
Dan Caflisch, President
Dan Caflisch grew up working in the family business known as Caflisch Lumber Company, which was started by his great-grandfather more than 100 years ago. After the business dissolved in the early ‘90s, Dan followed family tradition of entrepreneurship, founding Caflisch Trucking and Construction Inc. The early years of his business involved hauling freight for local companies in the area.
As months passed, Dan noticed the need for wooden pallets in the manufacturing areas of Chautauqua and Erie County. It was then, in 1993, that he chose to grow the corporation into a pallet manufacturing and recycling facility. Upon adding these new services to its lineup, the company emerged with a new name, Caflisch Pallet & Wood Services. Strategic Growth Early beginnings were quite simple. It included a flatbed truck, two employees and a small piece of land. Today, the company’s manufacturing facility is 35,000 square feet. Caflisch employs more than 25 dedicated and hardworking employees and services more than 100 customers in the tristate area. Despite the challenges, the company also offers health care and retirement plans to those who choose to participate. Caflisch’s services include building new, reconditioned and heat treat certified pallets, in addition to specialty and custom-built wood items. A ‘Green’ Business As a leader in the wood recycling industry, Caflisch Pallet & Wood Services is strongly committed to “green initiatives” to protect the environment. “We are very proud of our pallet recycling success,” explains Dan. “Roughly 60 percent of the 25,000 pallets produced on a weekly basis are recycled. Approximately 90 percent of our pallets that are reclaimed for recycling are successfully made back into pallets. The remaining 10 percent serves for purpose of mulch.”
8596 Knowlton Road, Clymer, NY 14724 716/355-4354 www.caflischpallet.com
Customer Focused When it comes to its customers, Caflisch makes every effort to respect its clients’ needs and establishing a trusted working relationship. “The pressures and demands of today’s fast-paced manufacturing industry can be enormous,” states Dan. “Meeting tight deadlines, creating custom and innovative solutions often result in passing a savings onto our customers. The overall quality of pallets we sell and making our customer service a priority has allowed us to continually grow the business, stay competitive and retain our reputation as a major supplier in the tri-state area.” Future Still, owning a small business in New York state can be and remains very challenging. “We continue to grow our business, always looking for safe and new improved processes,” Dan says. “With each and every day, there tends to be learning experiences and hurdles to overcome. In 2017, our specialty business, which includes custom boxes and industrial lumber, has exceeded expectations so much so, that it has forced us to become more innovative, and we’re excited about plans for a 2018 expansion.” Dan takes great pride in what he’s created, contributing much of it to creative thinking, good old-fashioned hard work, and the support of his loving wife and family. He believes in community, strong relationships and loves the area he lives in.
Care & Comfort When you need it most!
Celebrating 10 years of helping people age at home!
In-home care services include:
Dressing & Grooming Kitchen & Bath Cleaning Bathing & Toileting Dusting & Vacuuming Help with Transfers & Meal Preparation Ambulation Laundry & Ironing Medication Reminders Transportation & Errands Transition & Respite Care Companion Care Help with Hospice Care Help with Hobbies Alzheimer’s, Dementia and Parkinson’s Care
Senior Helpers
3104 State St. Erie PA 16508 814.454.9500 www.seniorhelpers.com/erie
BY THE NUMBERS & GROWING
50
school partners
142
business partners
22,125 student experiences
185 available experiences
Congratulations to the MBA on 30 years of providing integral services to its membership to ensure their success! Career Street is proud to partner with the MBA as they take care of today’s workforce and we prepare the workforce of tomorrow. Connect with your future workforce and join Career Street today! www.CareerStreetErie.org jpontzer@CareerStreetErie.org 814.464.8614 Help us pave the way for a skilled and engaged workforce.
SPOTLIGHT Q&A | FAMILY OWNED BUSINESS
A Legacy of Quality, Safety and Sustainability A company’s anniversary isn’t just a cause for celebration, it is also a time for reflection while focusing on the future. Here, C. Bruce Kern II, president of Curtze Food Service and a member of the MBA Board of Governors, shares his thoughts on the sixth-generation, family owned business’ rich history and 140th year of operation in 2018.
Tell me what you credit for Curtze Food Service’s longevity. Our industry has some inherent stability. The dynamics of demand can change a bit, but people need to eat and are willing to dine out regardless of the state of the economy. It is, however, a very competitive industry and our enduring values have enabled us to succeed over time. We have an unwavering commitment to search for quality when sourcing and developing our products. We also focus on providing value and solutions to our customers. These factors, and a little luck, have contributed to our long run. Curtze Food Service is widely recognized as the “Food Distributor of Choice,” tracing its roots to C.A. Curtze, who started the company in 1878 in Erie. Tell us about Curtze’s rich history. The company was founded by my greatgreat-grandfather, Charles August Curtze, as a wholesale business providing food and supplies to retail merchants and to a growing number of oil and lumber camps of that era. He tragically died in a horse riding accident in 1901 and the company carried on under the management of his two children Julia Kern (married to Dr. Rudolph Kern) and Edwin Curtze (father of Rear Admiral Charles Curtze and Margharita Curtze Vicary). Julia’s son Carl J. Kern (my grandfather) joined the company full time in 1933, after attending Yale University. He then partnered with another longtime Curtze associate and friend Cassius Cook to get into the retail grocery business. By the early ‘50s, they sold their six Cook’s Markets to Century Markets. In 1957, however, C.A. Curtze Co. came upon hard times, and Carl bought all remaining shares from his brother and two cousins.
The company really turned the corner in 1961 when Carl’s son Bruce Kern Sr. (my father) joined the business full time and the strategic direction focused 100 percent on the growing “food service” segment of the food industry — independent restaurants, diners, clubs, hotels, camps, schools, hospitals, nursing homes and anyone that served food away from home. With the entry into the fresh meat business, strategic product development and branding strategies, the stage was set for the steady growth that has followed. In 1966, Bruce bought another distribution center in Cleveland. After many years of industry experience in the Midwest, his brother Doug Kern joined the company as president of that location in 1977. I started working part time during high school in 1976 and joined the company full time after college as a sales representative. My brother Scott, who also spent summers working in the warehouse and meat department, graduated from the University of Pittsburgh School of Law and practiced at The Knox Law Firm before joining the company in 1994. In 2001, we bought our third distribution center in Rochester, New York. Generation No. 6, my son Bill, joined the company full time in 2012 and, without a doubt, has become the most cross-trained employee at Curtze. Today, we distribute more than 14,000 items out of our three facilities with a fleet of 125 trucks that make daily deliveries into eight states. How important is the role of safety to your reputation and success? Warehousing, trucking and food processing are all highly regulated activities by various government agencies, and we have invested in a number of technologies in order to stay in compliance. When it comes to food safety,
we have gone above and beyond compliance by implementing a pathogen reduction system that uses photohydroionization technology. Our Specialty Steak Service division was instrumental in developing techniques and implementing the use of various ultraviolet rays in order to greatly reduce microorganisms. This process, called Blue Beam technology, is used by only a handful of food processors in the country and gives our customers and sales force an added measure of confidence in the safety of our products. What is your outlook for Curtze Food Service in 2018? This year’s sales growth was much healthier than 2016, and we expect to carry a lot of momentum into the new year. The independent restaurants have outperformed chains recently and that is an excellent indicator for us. We also expect to see growth in country club and assisted living facilities. We will certainly be adding a number of sales representatives in many of the markets we serve, which will generate market penetration and some geographical expansion. We are always looking for acquisitions in adjacent markets. Is there anything you would like to add? We have been blessed with an extraordinarily talented group of employees in all of our departments. The managers of our sales team, purchasing, operations, meat and seafood departments, administration and IT have all been indispensable to our success. We have been fortunate to retain our key leaders and sales team who choose to stay with us for the long haul.
mbabizmag.com • JANUARY 2018
17
Healthcare • Education • Institutional • Retail • Hospitality • Industrial • Concrete
The Austin Difference
Contractors & Construction Managers Since 1906 814.454.7147 www.eeaustin.com
EE Austin & Son offers a dynamic management team committed to providing construction excellence. Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906.
EE Austin & Son remains steadfast in its century old promise to... “Do the right thing...all the time.” It’s the Austin Difference.
YOUR BUSINESS: THE NEXT GENERATION For most family businesses, planning for succession is a tough and critical challenge. Yet succession planning can also be a great opportunity to create a multigenerational institution that embodies the family’s values for generations to come. Attorneys at Knox Law provide guidance and counsel helping you to address issues related not only to ownership succession, but also concerns involving estate planning, tax planning, workforce, real estate and intellectual property — planning that will deliver lasting value to your family.
Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | Jamestown, NY | North East, PA 814-459-2800 | www.kmgslaw.com
18
JANUARY 2018 • mbabizmag.com
Wearable Fitness Technology Helps Track the Way to Better Health Stephen T. Doyle is senior director for Strategic Health Management Solutions for UPMC Health Plan and UPMC WorkPartners, which are both part of the UPMC Insurance Services Division. The UPMC Insurance Services Division offers a full range of insurance programs and products and also includes: UPMC for Life, UPMC for You, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions and Askesis Development Group.
Wearable fitness technology is a term that describes devices that measure physical activity, heart rate, caloric expenditure and other biometric measures. These are also devices that could dramatically change the face of the health-care industry. With wearable fitness technology, there is a potential to create accurate, real-time data about the people who wear it. It can also provide a continuous validation of a person’s daily health behaviors, which, over time, can build to reveal overall health. By collecting data in several areas — including eating and exercise — these devices can function much like a health coach or trainer providing goals, monitoring activity and providing feedback. An added benefit: The devices are always with you.
Popularity Rising According to Pricewaterhouse Coopers, it is estimated that 20 percent of Americans currently own a wearable device. Of these users, many are young. Millennials make up more than 50 percent of the population, and 53 percent of Millennials say they are excited about the future of wearable technology. Some estimates project that the sales of wearables could gross almost $6 billion by 2018. As these devices evolve — both in design and capability — they increase in terms of relevance and use. Early fitness monitors were generally very expensive and obtrusive, which meant only serious athletes, extremely fit persons or participants in clinical research
HEALTH MATTERS | SOLUTIONS programs ever used them. Now, with a myriad of design options, coupled with the integration of other technologies — such as smartwatches, smartphones, clip on devices etc. — as well as the market competition-driven lowering of the price, these devices are continuing to increase in popularity. Wearable technology is generally affordable and easy to use. These devices could track a user’s fitness activities, sleeping habits, body temperature and heart rate to deliver real-time, relevant health information. By leveraging the data produced from these devices, the potential is there to improve health and reduce health-care costs over time through modifying daily health behaviors, and also improve preventive care and predictive modeling. Wearable technology could really advance population health management and allow an individual’s health-care provider to support them in a more proactive and effective way. Wearable technology is not a wellness silver bullet, nor does it replace the relationship between a patient and a physician. However, the data that these devices produce can enable health-care organizations to develop more effective and more personalized approaches to care, which can improve the health of a population and reduce costs. Potential Issues The concerns over these devices and their use in health care and health insurance are typically around privacy and confidentiality. This, as with any protected health information, needs to be kept in accordance with all applicable laws and shouldn’t be shared with an employer or other entity without appropriate consent from the user. There’s also concern over how the information would be used. This is a natural concern that occurs with the introduction of any new technology that requires an element of personal information disclosure to function most effectively. Many mobile apps, such as banking apps or travel apps, are great examples of how initial concerns over information sharing dissipates as technology becomes more ubiquitous, personalized and relevant to the individual. To learn about UPMC WorkPartners’ suite of population health management tools and wellness programs that enable organizations to create a culture of health and better manage rising medical, disability and workers’ compensation costs, visit http:// www.workpartners.com/products-services/ health-wellness/.
mbabizmag.com • JANUARY 2018
19
Swiss Aero Celebrates 10 Years Swiss Aero has been serving its customers with high quality, high performance CNC precision machining for 10 years. Our 60,000 square foot manufacturing facility offers design, engineering, prototype development, CNC turning, assembly (clean room and sterile) and packaging. We have the ability to deliver a variety of geometries, part types and assemblies to meet specialty manufacturing, environmental and operational requirements for industry and other high performance applications. Call us today to discuss your project. AS9100 Certified Swiss Aero Inc. 802 Walnut Street Waterford, PA 16441 Swissaero-inc.com swissaero@live.com P: 814.796.4166 F: 814.796.4119
20
JANUARY 2018 • mbabizmag.com
LEGAL BRIEF | COMPLIANCE
Despite the Complexity and Headaches, Legal System is Necessary for Commerce ,
to supply goods or services. The contract was drafted years ago and you painstakingly negotiated what you believed to be every detail and term. The business eventually grows reliant upon the contract and the relationship becomes critical to your business, but after many years, the relationship deteriorates and your business is in jeopardy. The basic terms of the agreement are no longer being met by the other party, and the revenue of your business drops significantly. You are forced to take action to enforce the terms of the agreement, and your business, livelihood and the jobs of your employees are at risk.
Matthew B. Wachter is a member of the Business Transactions and Trusts & Estates practice groups at MacDonald Illig. Wachter concentrates his practice in the areas of business and tax, business succession planning, and estate planning and administration.
From the largest manufacturer, to the local “mom and pop,� a business is reliant upon the shared set of expectations created by the legal system to conduct commerce. Without the rules and safeguards set forth by the legal system, a business owner would be hesitant to enter into an agreement of any size or scale, whether it be the sale of goods across town or a complex transaction involving multiple parties across state or international borders. Without a developed legal system, a business owner would have little guarantee of recourse in the event of a dispute.
Business owners are frustrated (and for good reason) by our legal system and its ever growing complexity.
A business owner is oftentimes most dependent upon the legal system when he or she is required to enforce the terms of a contract. As the document that sets forth the expectations of the parties in a business arrangement, a contract can take many forms, from a highly formalized, detailed and negotiated legal instrument to an oral agreement solidified by a handshake. No matter its form, level of detail or sophistication, a business owner is reliant upon the legal system when things go awry and they are forced to enforce the terms of an agreement in the event of a contract dispute.
The challenge of compliance with the myriad of laws and regulations today is formidable, and a business owner is often forced to seek out attorneys, accountants and other professional consultants for assistance. The legal system appears to many to be a mere drain on otherwise precious business resources. Despite the complexity, and the resulting headaches and burdens that follow, the legal system provides the framework by which modern commerce is conducted in the 21st century economy.
For example, imagine your business entered into a contract with a company
Where do you turn for help? Can you enforce an agreement across state lines or international borders? What if the contract does not address matters related to dispute resolution, jurisdiction or the applicable governing law that controls in the event of a dispute? The legal system anticipates each of these concerns and the myriad of other issues that arise in the modern economy. The legal system has evolved into a complex framework of international treaties, federal, state and local laws and regulations that serve as the means by which a business owner is provided recourse when problems arise. While complex, and at times burdensome, a business owner would not have the ability or confidence to conduct affairs without the legal system. This is not to defend overly complex and burdensome regulations, which are sometimes levied by ideology and political imperatives, rather than being fact based and consistent with just plain common sense. However, it is now important to recognize that our legal system also provides the certainty which makes commerce possible. In critically evaluating the legal system, therefore, it is important to look at all sides of the equation and not to throw the baby out with the bath water! For more information, contact Matthew B. Wachter at 814/870-7717 or mwachter@mijb.com.
mbabizmag.com • JANUARY 2018
21
BUSINESS BUZZ | WHAT’S NEW GMHS, GREAT LAKES PARTNER ON IPAD STORAGE SOLUTIONS
When General McLane School District began planning for its elementary iPad rollout, technology supervisor Jeremy Dylewski searched for the best storage solution on a budget. The result? A one-of-a-kind drawer that allows each teacher to securely store and charge the iPads, as needed, within an already existing space – and all locally sourced, thanks to Great Lakes Case & Cabinet. “The customization of the product to best fit our needs, financially and logistically, was the driving force that led to the partnership,” Dylewski said, in a press release. “We’ve been amazed at their professionalism, quality of the products and customer service. The entire experience has been above and beyond – and we’re supporting a local business, which makes it even better.” Great Lakes Case & Cabinet (GLCC) is a metal fabricator based out of Edinboro and specializes in the manufacture and integration of indoor and outdoor enclosures for the storage and protection of IT equipment. Dylewski worked with a GLCC engineer and team to completely customize this product from start to finish. He was involved with the plan throughout the entire process, from the drawing it on the >
A General McLane School District student shows the new iPad storage drawer developed with expertise of Great Lakes Case & Cabinet in Edinboro. whiteboard until implementation. In addition to complete customization, face-to-face interaction, and keeping tax dollars in the local community, the costs of the project added significant savings to the District. The District saved approximately $600 each drawer compared to the average cost of a mobile charging cart. The new storage system occupies unused space within the technology cabinets that already
SEPCO-Erie Celebrating 50 years of innovative machining 1221 Robison Road West Erie, PA 16509 814-864-0311 www.sepco-erie.com 22
JANUARY 2018 • mbabizmag.com
exist in the classrooms for technology needs. Forty drawers were created and placed in the elementary homerooms. General McLane School District serves students in kindergarten through 12 grade in Franklin, McKean and Washington Townships, as well as the borough of McKean and Edinboro. The District also serves tuition students throughout Erie County.
MARTTER NAMED PRESIDENT, CEO OF HEATRON, INC.
Robert H. Martter has been named president and chief executive officer of Heatron, Inc. effective January 1, 2018.
Martter replaces current Heatron President HB Turner who is stepping down after 35 years of employment with Heatron to pursue other interests. Turner has been president of Heatron since 2004 and was one of the company’s primary shareholders at the time of the sale of the company to NIBE, Inc. in March of 2016. NIBE, Inc. is a global manufacturing company based in Markaryd, Sweden focused on Climate Control Solutions, Heating Elements and Stoves. NIBE is a publicly traded company with annual revenues of approximately USD $2 billion and is listed on the Stockholm stock exchange. Thomas Egerstrom, managing director of Backer EHP, NIBE’s North American Element Segment, announced the change on September 11, 2017 at Heatron’s headquarters in Leavenworth Kansas. Martter will report to Egerstrom. Martter, currently vice president of Heatron, also has managed the company’s Erie operation for Heatron since 2002 when Heatron acquired
celebrating
the facility which is located in Summit Township. The facility specializes in thick film heaters and resistors, LED technologies and provides stateof-the-art electronic component assembly capability for Heatron. Heatron operates two additional factories in Leavenworth Kansas specializing in flexible, cartridge and cast-in heating elements. According to a press release, Martter will lead a team with a goal to grow Heatron beyond the current estimated 2017 revenues of approximately $50 million. Heatron heating elements are custom engineered subcomponents sold to original equipment manufacturers in markets such as medical, aerospace, industrial and capital equipment and consumer products. Heatron employs approximately 260 associates, including about 60 in Erie.
PEOPLE BUZZ | AWARDS AND PROMOTIONS TRI-STATE PAIN INSTITUTE WELCOMES NEW PHYSICIAN
Timothy Ko, M.D., has joined the Tri-State Pain Institute, the region’s leading pain management center, effective December 1. He becomes part of the Pain Institute’s physician team of Drs. Joseph Thomas, W. Paul Diefenbach and Jung-Woo Ma. With more than a decade of experience in pain treatment, Dr. Ko is board-certified in both pain medicine and anesthesiology and has served as a pain specialist for several Cleveland area medical centers.
Martter has a bachelor of science degree in mechanical engineering from the University of Akron and an MBA from Baldwin Wallace College in Berea, Ohio. He started his career with The DuPont Company and worked in engineering, manufacturing and sales. He later joined Ferro Corporation (Cleveland) and eventually American Trim LLC (Lima, Ohio), both previous owners of the Erie PA business now owned by Heatron.
Dr. Ko completed a fellowship in pain medicine and a residency in anesthesiology at Case Western Reserve University in Cleveland. He earned his medical and undergraduate degrees at Northeastern Ohio Universities College of Medicine and Youngstown State University, respectively. With offices in Erie, Pennsylvania and Jamestown, New York, Tri-State Pain Institute is the region’s leading pain management center, offering advanced treatment for the long-term relief of acute and chronic pain, including back, neck, leg, joint and shoulder pain, as well as pain from arthritis, headaches, fibromyalgia, post-surgery and cancer complications.
25 Years in business
Environmental Consulting Services Site Remediation Environmental Site Assessments Storage Tank Closures and Removals
4250 Route 6N
Edinboro, Pennsylvania 16412
814.734.6411
environmental-remediation.net
mbabizmag.com • JANUARY 2018
23
HR CONNECTION | WORKPLACE TRENDS STUDY: FIRMS MUST START SUCCESSION PLANNING EARLY
As baby boomers continue to retire in large numbers, many are leaving leadership of their companies to the next generation. According to a study by industry consultant FMI, more than 50 percent of engineering and construction firms are expected to change ownership in the next 10 to 12 years. The study finds that firms must both acquire and develop talent while transferring ownership to a new generation. The findings reveal several emerging trends: • Fewer firms have family members active in their businesses today than in 2013 (45 percent in 2017 versus 73 percent in 2013, according to the FMI survey). Even fewer say the next generation will own and run the business in the future (32 percent in 2017 versus 52 percent in 2013). • In 2013, 17 percent of respondents planned on a third-party sale. In 2017 that number has declined to 8 percent. Conversely, employee stock ownership plans (ESOPs), have gained in favor among respondents, increasing from 4 percent to 12 percent from 2013 to 2017, respectively. • Firms with a clear strategy for the future are more likely to have a formal ownership transfer-and-succession management plan in place. The survey also revealed that many next-generation leaders (47 percent of identified successors) are unprepared to lead the business for another three to five years.
STUDY: AVOIDABLE TURNOVER COSTS EMPLOYERS BIG
An escalating competition for workers and a shrinking talent pool are coming together, giving employees the advantage in the job market and costing employers thousands of dollars per employee in turnover.
Data from Work Institute’s 2017 Retention Report estimates that it costs as much as 33 percent of a worker’s annual salary to replace. When the formula is applied to the median employee’s salary of $45,000, the average cost of turnover per employee comes out to $15,000. The indirect costs of turnover are sometimes referred to as “productivity costs” that come from lost institutional knowledge, the time lag it takes to find a replacement and the time it takes for that new worker to become fully productive, according to the study. The study examined more than 34,000 exit interviews conducted in 2016 to uncover the top reasons employees said they left their jobs. Those reasons include: career development (22 percent), work-life balance (12 percent), management behavior (11 percent), compensation and benefits (9 percent) and well-being (9 percent).
24
JANUARY 2018 • mbabizmag.com
Exclusive Benefit Programs Available to MBA Members Only Thanks to the Manufacturer & Business Association’s (MBA) long-term partnerships with industry-leading insurance carriers like Delta Dental, Aetna, Eastern Alliance and now VBA Vision — MBA members continue to enjoy exclusive access to premium benefit plans at highly competitive rates. New Vision Benefit Beginning January 1, 2018, MBA members with at least two participants can add our highly affordable vision benefit to their compensation package through VBA Vision. This flexible plan can be employer or employee-paid (no employer contribution requirement) — plus, there are no additional billing fees or administrative costs to boot. Dental Delta Dental is the No. 1 provider of dental benefits in the United States offering one of the largest national networks in the country. The MBA offers six exclusive plans at discounted rates — including a new plan that covers adult orthodontics — for groups with two or more employees. Best of all, there is “no waiting period” for coverage or treatment. Life, Short-Term and Long-Term Disability Thanks to our long-standing partnership with Aetna, MBA members with groups as small as two can select from various life and disability coverage options that offer no medical underwriting; no waiting periods and a two-year rate hold that includes flat rates, as well as salary rates. Workers’ Compensation MBA members have access to workers’ compensation insurance through our partner Eastern Alliance Insurance Group (EAIG) that offers the potential of a group policyholder dividend reimbursement for all participants, including small groups. To learn more about the value, benefits and savings available through the MBA, contact your broker or email me at mdamico@mbasua.org.
Melissa Damico is manager of Client Services for the Manufacturer & Business Association Insurance Agency (MBAIA) and a licensed insurance agent. Contact her at 814/833-3200, 800/815-2660 or mdamico@mbausa.org.
Serving 13-counties of northwestern Pennsylvania for 30 years! NWIRC is driven by the impact our consulting and customized training solutions have on small- and mid-sized manufacturing companies. We’re proud to be a trusted business partner to our clients, an advocate for manufacturing in northwestern PA, and a caring community partner. We continue to help manufacturers achieve top and bottom-line growth through continuous improvement, advanced manufacturing technologies, customized workforce training, and skills development programs.
We’re measured on impact!
In the past 12 months, our clients have reported:
$74.2M New and Retained Sales $20.9M New Investment $10.4M Cost Savings 745 Created and Retained Jobs
www.nwirc.org *Impact is reported by clients via an independent third-party evaluation.
We have the resources to offer IT services such as: fully outsourced network management arrangements, including IP telephony, messaging and help desk management, virtual private networks (VPNs), managed firewalls and monitoring/reporting of network servers, among other services. With our IT solutions and services you get the IT support you need, when you need it, without a hike in fixed payroll costs. Never worry again about what to do when your network crashes or how to put a data recovery solution into place. We're your oncall IT.
Celebrating our Past, Preparing for your future, Thank you for the past 40 years
MENU OF SERVICE OPTIONS WE OFFER We know that each enterprise IT is different so we work with our clients to develop strategies tailored to suit their specific needs. Our solutions include: • Data BackUp & Recovery • Managed Services and Support Help Desks • Cloud Computing • Hardware Solutions • VoIP Solutions • Vendor Management • Email and Spam Protection • Office 365 and deployments • Cyber Security
8127 Nathan Circle, Erie PA 16509
www.szy.com
814-315-3755
mbabizmag.com • JANUARY 2018
25
It’s time to celebrate! The Manufacturer & Business Association (MBA) is proud to recognize the hundreds of MBA member companies that are marking a major milestone anniversary in 2018, as as well as our own Business Magazine, which is celebrating its 30th year! On behalf of the MBA Board of Governors and staff, thank you for your determination and for your countless contributions that make your organization and our business community strong. Yours is a great success story that we are confident will continue for many years to come. Congratulations and happy anniversary! 170 Years
130 Years
80 Years
50 Years
The Record-Argus
Nortek Global HVAC Times Publishing Company
Jersey Shore Steel Co. Kubinski Business Systems Parker Hannifin Corporation Steighner Crane Service, Inc. The Sight Center of Northwest PA
Buseck, Barger, Bleil & Co. Inc. Construction Specialties Group Dale McClymonds Inc. Hickman Lumber Company, Inc. John Savoy & Son Inc. Leech Industries Inc. Millcreek Community Hospital Mobile Communication Service Inc. Murray Agency Inc. Penn State Erie, The Behrend College Phillips Jewelers Inc. R. M. Kerner Company Scott Enterprises T. Bruce Campbell Construction Co. Inc.
Bianchi Motors Inc. Carl M. Moses Esquire, Attorney at Law Carlson’s Industrial Grinding Inc. Chet Aleks Yamaha & Marine Inc. Concord Plumbing & Heating Inc. Cristal Eccles-Lesher Memorial Library Elcam Tool & Die Inc. Emergency Medical Service Institute Essentra Components Experience Inc. Fred’s Furniture Co. Futures Rehabilitation Center, Inc. Hurwitz Brothers Jarecki Valves John F. Kennedy Center, Inc. Murray Insurance LLC Paul Starr Trailer Sales, Inc. Penna Flame Industries R. A. Greig Equipment Company SEPCO-Erie Street Track N Trail Inc. The Colonial Machine Company, Inc. The Fireline Group Venango Supply Plumbing & Heating Supply Co. Zeyon Inc.
60 Years
40 Years
165 Years
125 Years
Catholic Diocese of Erie
Murrin, Taylor, Flach, Gallagher & May The Kahkwa Club
155 Years Center for Family Services Inc.
120 Years
150 Years
Ralph Miller Jewelers Siebenbuerger Club YWCA of Northcentral PA
First Niagara Bank
145 Years
115 Years
Barr’s Insurance
Conneaut Lake Navigation Co. SPX Flow, Inc.
140 Years
110 Years
Curtze Food Service General Electric Company
Elkay Wood Products - Mifflinburg Lake Shore Industries Inc. Marquette Savings Bank
135 Years Associated Spring, Barnes Group Inc. E. W. Bisett & Son Inc. Family Services of NW PA
105 Years
Arthur F. Schultz Company Erie Concrete & Steel Supply Company Franklin Area Chamber of Commerce Peter Hardner & Son Inc. Rehrig Pacific Company Warren Steel Products, Inc.
100 Years American Hollow Boring Company Butler County Motor Company Erie Civic Theatre Marine Sheet Metal Works Wesbury United Methodist Community
90 Years Con Yeager Spice Co./CYS Transportation Penn-Union Corp. Philip J. Schaville, O.D., P.C. Rossbacher Insurance Service, Inc. TechnipFMC
26
JANUARY 2018 • mbabizmag.com
75 Years Erie Industrial Supply Company Presbyterian SeniorCare Network Ricardo’s Restaurant
70 Years
BASF Corporation ELCO Sintered Alloys Company Inc. Erie Bearings Company Erie Community Credit Union Fairchild Excavating Inc. Hovis Inc. Jemko Petroleum Equipment Inc. Kafferlin Sales & Service Inc. Knox McLaughlin Gornall & Sennett P.C. Lake View Country Club SRU Federal Credit Union
Charles Machine, Inc. Chilson Holdings Company Clark-McKibben Safety Products Inc. Corbet Construction Inc. Counselling Svc Ctr. of SE Erie Cty Inc. Cunningham Shanor Inc. Dale L. Myers DMD Easthill Group, Inc. Elk Waste Services Inc. Engineered Plastics LLC Erie Weld Products Inc. Forta Corporation Foundation for Free Enterprise Education Frederick Drilling Company & Sons Inc.
G. M. Nelson Construction Inc. Gorzynski, Uglow & Farrell, P.C. Insul-Board Inc. Joseph J. Huya Trucking Kapp Alloy & Wire, Inc. Levco Communication Luden’s Financial Services Merrill Lynch Micro Mold Company Inc. Mikron Valve & Manufacturing Inc. Morrison Funeral Home, Inc. Orton & Jeffery, P.C. Pappy Joe Construction Paramount Lists Inc. Paul Seymour Tool & Die LLC Penn Metal Stamping Inc. Polymer Molding Inc. Powell Sanitation Service Ray Wakley, Inc. Roberts Trucking Company LLC Safe Journey Szymanski Consulting Tionesta Builders Supply Vineyard Oil & Gas Company Weber Electric Supply Company Inc. Werzalit of America Inc. Youth Alternatives of Oil City Inc.
30 Years Acutec Precision Aerospace Inc. AG Aegis Company Inc. AirBorn Anesthesia Consultants of Meadville PC B. C. Fabricators, Inc. Barker, Incorporated Best Printing BWI Eagle, Inc. Clarence J. Swahn DMD Collins Rainbow Carwash Community Chevrolet, Inc. Crawford Cty. Mental Health Awareness Program, Inc. Davevic Benefit Consultants Inc. David Malinic, DMD Engeo Services Inc.
Erie Truck and Trailer Inc. Garrett W. Dixon, M.D. Harrington Inc. Highpoint Tool & Machine J. L. Nick & Associates Inc. James E. Devlin, M.D. Ken-Fab & Weld, Inc. Kennedy Concrete Inc. Klein and Rizzo Inc. Lang Surveying Mark Randolph Masonry MBA Business Magazine Myers Trucking, Inc. Niagara Manufacturing Co. Northwest PA Industrial Resource Ctr. Pangallo Truck Service Pinnacle Plastics/Clarke Container/ Recycle Your Closet R. E. Johnson Electric Inc. Roth Marz Partnership, P.C. S & S Packaging Products Inc. S & W Auto Service Center Inc. St. Benedict Education Center Star Auto Glass & Windshield Repair Inc. Steeple Furniture Inc. Summit Hardwoods Inc. Tri-County Pest Control Tri-Max Manufacturing Co. Inc. U. S. Bronze Foundry & Machine Inc. UACJ Metal Components NA Vartech Metal Specialists Inc. Vorzik Transport, Inc.
25 Years Allegheny Transmission Service Inc. Battery Warehouse Bucktail Excavators Inc. Caflisch Pallet & Wood Services Counterflow Inc. Custom Plastic Specialties, LLC D & E Machining Ltd. DuBois Radiologists Inc. Ed’s Beans Inc. Environmental Remediation & Recovery Inc.
H.E. Fox, Inc. Infinity Resources Inc. Information Strategies Plus Intrac Systems, Inc. J. Krukar Construction Co. Inc. John E. Balmer, D.O. Keystone Community Education Council Lake Erie College of Osteopathic Med. Larkel Inc. Machining Concepts Inc. McCartney Feed and Hardware Inc. McCracken Oil & Gas LLC Microtel Inn Erie Northeast Industrial Manufacturing, Inc. Petro Mold Company Pilewski Plumbing Inc. Quantum Plating Inc. Randy Keller Excavating RefrAmerica LLC Shults Management Company Target Precision LLC Tri-State Bakery Service Troy-Alan Chevrolet-Olds, Inc. United Mining Equipment Voices for Independence X-Cel Gymnastics Inc.
20 Years A & M Machining and Fabrication, Inc. Anderson Plastics Inc. Aunt Bee’s Home Cooking Aztec Linear, Inc. Battery Warehouse (Grove City) Contract Cleaning Service and Supply Crawford Co. Consumer Satisfaction Team Custom Metal Coating D.E. Limited Family Partnership Eastern Tool Steel Service, Inc. Edinboro University Foundation Elite Orthotics Inc. Elite Technologies & Communications Family Pathways ITZ Solutions Life Force of Western PA, Inc. McKean Veterinary Hospital
Meadville Land Service Inc. Meadville Obstetrics & Gynecology Assoc. Pathways Adolescent Center Inc. Port Harbor Company Proform Powdered Metals, Inc. R & S Machine Company Reabah Inc. Recycall, Inc. Robert Benjamin Wiley Community Charter School Sasol Chemicals (USA) LLC Simonian Electric Inc. SinterFire, Inc. The Vargo Company Warren’s Hometown Market WDK Enterprises Inc.
10 Years BASH Contracting Inc. Bauer Property Management LLC Bishop & Co. Investment Management LLC David J. Peck and Associates LLC Edward M. Zimm P.C. Edward S. Kocjancic, Inc. Erie Basketball Management LLC Father and Son Remodeling Knight Carpet & Flooring Inc. Leighton Drilling Co. LLC Niagara Therapy North Coast Foot & Ankle PC Parkside Psychological Associates Rebich Investments Secure Asset Management Inc. Senior Helpers of Erie SwissAero Inc. The Health Insurance Store The Jefferson Educational Society Tires for Less 3
*Anniversary information is based on member records as of August 2017. We regret any errors or omissions. Please contact the Manufacturer & Business Association at 814/833-3200 or 800/815-2660 with updated information for inclusion in future publications.
mbabizmag.com • JANUARY 2018
27
HR Q&A | GET ANSWERS ARE SERVICE AWARDS TAXABLE INCOME?
According to the Internal Revenue Service (IRS), in order for a length-of-service award to be excludable from wages, special requirements and dollar limitations must be met. A qualifying award: • Must be given for length-of-service; • Cannot be a disguised wage; • Must be awarded as part of a meaningful presentation; • Must be an item of tangible personal property (cannot be cash, cash equivalent, vacations, meals, lodging, theater or sports tickets, stocks, bonds); and • Must meet other special requirements and limitations, discussed below. (Reg. §1.274-8(c)) An award will not qualify as a length-of-service award if either of the following applies: 1. The employee received the award during his or her first five years of employment. 2. The employee received another length-ofservice award (other than one of very small value) during the same year or in any of the prior four years. Note: A traditional retirement award is an exception to the five-year rule. (Reg. §1.274-8(d)(2))
CAN I REQUIRE EXEMPT EMPLOYEES TO WORK SPECIFIED HOURS AND MAKE UP MISSED WORK TIME?
Yes, you can require this of exempt employees. The matter of working specified hours was addressed in the preamble to the exemption regulations, which were revised in April of 2004. The preamble is a discussion of the rules, and the Wage & Hour Division (WHD) offered the following: “We agree that employers, without affecting their employees’ exempt status ... may require exempt employees to record and track their hours; may require exempt employees to work a specified schedule; and may implement across-the-board changes in schedule under certain circumstances.” There is nothing wrong with expecting exempt employees to work a specified schedule (i.e., to arrive by a designated time, to remain at work until a designated time, and to work a specified number of hours per week). If exempt employees could set their own hours, employers would have a difficult time managing their business and ensuring the availability of staff.
Are Your HR Procedures and Systems Compliant and Working For You? An audit is a systematic, objective tool to assess regulatory or policy compliance in the workplace. An audit usually involves a survey of the workplace to: • Identify what laws or regulations apply to a company or facility. • Determine whether applicable regulations are being complied with. • Determine whether company policies and procedures are being followed. • Assess documentation practices. • Identify any unwritten practices that should be formalized or changed. Audits may be voluntary, or they may be required. In a voluntary audit, an employer decides on its own that it would be advantageous to conduct an audit, whether to evaluate compliance status or to identify any suspected problems. Audits can be mandatory, however, if they are part of the settlement of an enforcement action between a governmental agency and your company. Audits also may be mandatory if they are required by a regulation. For example, some OSHA regulations, such as those governing process safety management, have self-audit requirements. There are numerous benefits to an audit if it is properly conducted and acted upon. First, an audit can help to identify and correct regulatory non-compliance problems, which can help reduce liability. Before you begin an audit, it’s important to determine the scope of the audit. A particular company many only want to examine its recruiting practices to ensure compliance with Equal Opportunity Employment laws. On the other hand, another employer may want to audit all of its human resources policies, procedures and systems. Contact the MBA HR services team for more information on how they can help with an HR audit at hrservices@mbausa.org.
Stacey Bruce, SPHR, SHRM-SCP, is the director of HR Services at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or sbruce@mbausa.org.
28
JANUARY 2018 • mbabizmag.com
ON THE HILL | REFORM
End Political Privilege to Unleash Growth Jessica Barnett is a policy analyst for the Commonwealth Foundation, Pennsylvania’s free market think tank. What’s the definition of political privilege? Getting government to help you elect your favored candidates for public office. That may sound illegal, but it’s standard practice for one special interest group: government union leaders. Unfortunately for Pennsylvania, government unions have used their exclusive political advantage to block reform, allowing budget deficits to deepen, pension liabilities to soar, schools to fail and jobs to disappear. Here’s how it works: The state collects political money, including campaign contributions, from government union members and distributes the money to union leaders. The unions then donate to elected officials, who in turn maintain union privileges and block policies union leaders oppose.
Adding to their financial recklessness, unions lobbied for additional pension benefits, then denied the existence of the pension crisis for years. As the unfunded liability surpassed $70 billion, union leaders spent members’ money pressuring Governor Wolf to veto meaningful pension reform in 2015. As pension payments and budget deficits siphon Pennsylvanians’ paychecks, teachers’ unions also strive to kill innovations designed to improve our schools. They tirelessly lobbied to preserve the “last in, first out” policy that places quality teachers at greater risk of furlough. Despite 50,000 students saved from failing schools through tax credit scholarships, they fought to decrease scholarship funding. They even fought against promising new Education Savings Account legislation to empower parents to customize their child’s education. Clearly, teachers’ union leaders prioritize funding bureaucracies over life-changing, money-saving opportunities for children. Maintaining the state-run liquor monopoly, preserving costly prevailing wage mandates, and the list goes on, are all funded by a steady stream of government-collected political money.
Government essentially joins union leaders’ fundraising team, deducting money from public workers’ paychecks — just like taxes.
One simple reform could reverse this unique political privilege and level the political playing field in Pennsylvania: paycheck protection.
The result? Government union political action committees (PACs) have spent nearly $40 million on political campaigns in the past decade including millions of dollars spent advocating for policies that stifle Pennsylvania’s progress.
This legislation prohibits using public resources to collect government unions’ political money.
As staunch advocates of higher state spending (which leads to more dues money), government unions demand more taxes from Pennsylvanians. They have lobbied for higher sales taxes, personal and corporate income taxes, and industry-penalizing severance taxes, stymying job growth and business investment to fund government’s spending addiction.
Recently, the House State Government Committee passed two versions of paycheck protection: SB 166, which prohibits government collection of campaign contributions, and HB 1174, which stops government from collecting all union political spending, including SuperPAC contributions, while exempting public safety unions. Under these bills, government unions would still collectively bargain and make political contributions — but without a taxpayer-funded
money collector. As a result, union leaders would directly solicit their political money, requiring members’ explicit consent. This commonsense ethical reform will foster fairer and smarter policy debates that empower communities, businesses and workers. As lawmakers contemplate these steps toward paycheck protection, they should look to Idaho and Utah for encouragement. When these states prohibited the state collection of union political money, union members better understood the politics their money supported and gained a louder voice: PAC contributions dropped by 75 percent and 90 percent, without hampering collective bargaining. Pennsylvania union members deserve to have this accountability from their leaders. What’s more, paycheck protection can help spark an economic shift. In other states, the passage of paycheck protection catalyzed further union reforms. These actions not only restored workers’ rights, but spurred economic reforms, attracted businesses and, ultimately, helped restore each state’s fiscal health. For instance, Michigan’s sluggish job growth rocketed to 16th in the nation following reform. Wisconsin’s private sector job rate recently hit a historic high and its unemployment claims hit a 30-year low. Indiana businesses specifically referenced union reform in their decision to work in the state. Pennsylvania’s legislature already has introduced similar union reform. The Open Workforce Initiative prohibits forced union membership and loosens the restrictive union resignation process, which would help make the Commonwealth a more worker and businessfriendly state. Eliminating political privilege nurtures healthy policy debate. Only through meaningful reform can Pennsylvania — and Erie — stand out as the best place to live and work in the Northeast.
mbabizmag.com • JANUARY 2018
29
PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
When the health of your company depends on the health of your employees, choose us. When landing the right talent depends on offering the right health plan, choose us.
The success of any organization depends greatly on the health and happiness of its employees. That’s why it’s so important to choose the right health coverage. With UPMC Health Plan, your employees get affordable in-network access to the doctors and hospitals they trust. And you get a health plan that makes sense for your company.
Call your producer or visit www.UPMCHealthPlan.com/employer
Network
Service
Affordability
Choose the Best
UPMC Health Plan received the highest numerical score among commercial health plans in Pennsylvania in the J.D. Power 2016-2017 U.S. Member Health Plan Studies. 2017 Study based on 33,624 total responses from 8 commercial health plans in Pennsylvania measuring experiences and perceptions of members surveyed January 2017 - March 2017. Your experiences may vary. Visit jdpower.com. 2017 Best Doctors listing, Best Doctors, Inc. Go to upmchealthplan.com/BEST