LET’s Roll flight 93 memorial ride
40
BIKES FLAGS
HEROES
SEPTEMBER 11, 2011 marks the 10th anniversary of the terrorist attacks on the United States – as well as the first American victory in the war on terrorism. The passengers and crew of Flight 93 took action, sacrificing their own lives to save others in defense of our country. We will never forget them. The LET’S ROLL FLIGHT 93 MEMORIAL RIDE is an organized motorcycle event unlike any other to honor these 40 heroes and to raise funds for the Flight 93 National Memorial in Shanksville, Pennsylvania. This special ride will gather groups of 40 riders at designated “flight path” locations – including Erie, Meadville/Conneaut Lake, Pittsburgh, Cranberry Township, Williamsport, Pottsville and Philadelphia, Pennsylvania. Each sponsored motorcycle will carry a flag bearing the name of one of the 40 heroes, and on September 11, 2011, will join hundreds of fellow riders from across Pennsylvania to travel to the Flight 93 National Memorial. All proceeds benefit the Flight 93 National Memorial Campaign.
SPONSORSHIP: $1,000 DONATION (PER MOTORCYCLE) INCLUDES: (1) Flight 93 Memorial flag bearing the name of one of the 40 heroes (1) Exclusive Flight 93 T-shirt (1) Exclusive Flight 93 commemorative pin (1) Exclusive Flight 93 patch (1) American Flag flown over the Flight 93 Memorial site
LET’S ROLL FLIGHT 93 MEMORIAL RIDE Honorary Grand Marshal, The Honorable Thomas J. Ridge, co-chairman of the Flight 93 National Memorial Campaign, former Secretary of Homeland Security and governor of Pennsylvania
Saturday, September 10: Riders will gather at their designated flight location for departure (details and time TBA). Pending arrival in Shanksville, riders may attend the Flight 93 National Park dedication ceremony, time permitting. Flight 93 Memorial Ride Concert: All riders are cordially invited to join Flight 93 family members for a special concert with Country Music Star DARRYL WORLEY on Saturday, September 10 at the Seven Springs Resort (time TBA). Exclusive Accommodations/Rates: A limited block of rooms (not included with sponsorship) has been reserved for sponsored riders at the Seven Springs Resort. Sponsors must be paid in full to reserve a room at a discounted rate. Reservations are first come, first serve. Sunday, September 11: All flights will gather at the Seven Springs Resort for departure to the Flight 93 Memorial Service (time TBA). At the conclusion of the service, riders may depart with their “flight path” groups or on their own.
JOIN US AND BE A PART OF HISTORY! REGISTER AT WWW.LETSROLLRIDE.COM
LET’S ROLL FLIGHT 93 MEMORIAL CONCERT: American Country Music Star Darryl Worley
• • •
Contact Tracie Black at 800/815-2660, 814/833-3200 or tblack@mbausa.org For information about the Flight 93 National Memorial, visit www.honorflight93.com For information about the 2011 Roar on the Shore® Bike Rally (benefiting Flight 93 National Memorial), visit www.roarontheshore.com
BUSINESS M A G A Z I N E Manufacturer & Business Association
Paul Bowser, President
High Pressure is Their Business
/ Page 8
VOLUME XXIV, NUMBER 5
MAY 2011
Welcomes
Bret Baier
KEYNOTE SPEAKER & FOX NEWS ANCHOR
68 th ANNUAL EVENT Sponsored by:
MAY 11, 2011
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May 2011
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
Why employers need to recognize the many ways that partner violence can affect their workplace and their work force.
Powerwise Ink Pumps President Phil Holmes discusses the history, operations and international footprint of this northwest Pennsylvaniabased company, which manufactures and supplies a complete line of quality ink pumps, accessories and product support for the flexographic and gravure printing industry.
7 / Health Matters
SANDRA CAFFO
15 / Legal Brief
Patently tested ways to protect your industrial designs in a global economy.
8 / Maxpro Technologies
JON WOODARD
23 / Blue Ocean Strategy
How challenging the functional-emotional appeal of a product can help you reach new customers. ANGIE ANGUS A S S O C I A T I O N
T R A I N I N G
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Training That Develops Effective Leaders for both new and “Investing in management education corporate seasoned leaders has not only influenced successful career success, but has contributed to many high quality, accessible paths. The MBAUSA programs are great value.” and affordable. That translates into – Gary M. Maras, Associates Inc.
Chief Executive Officer, Medicor
d Ed S - ERIE app an S SERIE ron Kn RY SKILL s Hugh Rial, Sha RVISO Inc. Inc. duate ED SUPE ociates in, gra or Associates CERTIFI Lisa Irw dicor Ass left: Medic ras, Me , from ckwell, Gary Ma Front row d Cheryl Ro ki and an f Muros Maras left: Jef , from Back row
the work force, I feel that I “As a young professional new to to develop leaderships was lucky to have the opportunity of experiences of skills in a class like this. The diversity me with an incredible everybody in the class provided I can be a truly sense of how things work, and how world.” effective leader in the modern business Administrative Associate, Medicor
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ent As a leader in professional developm for more and computer training programs rer & than 20 years — the Manufactu trainers Business Association’s expert you need deliver the knowledge and skills world. to compete in today’s business
3 / Spotlight
Maxpro Technologies President Paul Bowser explains how this Fairview, Pennsylvania-based company has grown and expanded to become a major supplier of liquid pumps, gas boosters, air amplifiers, high-pressure valves, fittings and tubing, as well as custom package systems, and why new markets such as the Marcellus Shale are expected to significantly impact its business.
5 / Business Buzz 16 / HR Connection
5
19 / On the Hill Guest columnist Lowman S. Henry, chairman and CEO of the Lincoln Institute, explains why no one industry, such as Marcellus Shale developers in Pennsylvania, should be singled out to pay for the overspending by state government in education and other areas.
< TRAINING CATALOG / Insert
Find out about the Association’s upcoming professional development and computer training courses, in our new quarterly Training Catalog!
Blue Ocean Strategy Center
DEPARTMENTS >
3
20 / HR Q&A 25 / People Buzz
The Business Magazine has gone mobile! Scan our barcode above to receive the current issue on your smartphone or mobile device using your QR code app. You also can receive Association and Business Magazine updates on Facebook and Twitter, or read our FREE e-Edition online at www.mbausa.org!
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D E T A D P U
EMPLOYMENT LAW POSTERS PENNSYLVANIA: The Pennsylvania
Department of Labor & Industry has made minor changes to five (5) postings on the current PA employment law poster. To stay in compliance with the law, employers must display the most recent poster in their workplace. Changes were made to the following: 1. 2. 3. 4. 5.
Minimum Wage Law Pennsylvania Right-to-Know Law Workersâ&#x20AC;&#x2122; Compensation Insurance Unemployment Compensation Employment Provisions of the PA Human Relations Act
FEDERAL: No changes have been made to the Federal poster dated November
2009, although it is available for purchase. PA Poster (REV 04/2011): Federal Poster (REV 11/2009):
Member: $15 Nonmember: $25 Member: $15 Nonmember: $25
Order Today! Call 814/833-3200 or 800/815-2660, or visit www.mbausa.org.
SPOTLIGHT > by Karen Torres Powerwise Ink Pumps, headquartered in Erie, Pennsylvania, with additional facilities in Canada and the United Kingdom, manufactures and supplies a complete line of quality ink pumps, accessories and product support for the flexographic and gravure printing industry. The Business Magazine recently met with President Phil Holmes to learn more about the history, operations and international footprint of this northwest Pennsylvania-based company.
Powerwise Ink Pumps has operated for 20 years in the Erie area and 50 years in the United Kingdom. Please share with our readers the company’s beginnings in England and how it came to be headquartered in Pennsylvania. Powerwise was established in 1961 in Manchester, England by my father, John Alfred Holmes. He was a sales representative for a gear pump company and recognized the need for pumps to handle ink. Consequently, on my sister’s birthday (June 13, 1961), he formed his own company. He worked from home and built pumps in the basement. As that company grew into new facilities and up to more than 50 employees, it also diversified into other styles of pumps for oil and water. In the meantime, I had toured in a band from the UK in the late ‘70s. At a concert at Mercyhurst College, I met a local girl from Erie and got married shortly thereafter. In 1990, my father and I decided to investigate the market for the pumps in the United States. In 1991, Powerwise Ink Pumps was incorporated. We found that Erie was a good location for machine shops and distribution to Canada was easy. The company had a turnover of almost $10 million and, within two years, the sales of ink pumps into the United States and Canada had overtaken the sales from the UK. The UK company had expanded into pumping systems for oil companies, so a deal was made to sell the ink pump portion to Powerwise Ink Pumps USA. Since then, several new designs, including peristaltic and double diaphragm pumps, have been added to the range. What is the size of your current operation? Powerwise has pumps running in more than 40 countries around the world and almost 50 percent of last year’s turnover was exported. Briefly describe your primary products and customer base. Our equipment is sold exclusively into the flexographic and gravure printing industry. This industry produces most all of the packaging for the products you use every day. Our customers include Frito-Lay and the Bureau of Engraving. These inks are low viscosity and can be solvent or water based. The areas we operate in are usually hazardous and our pumps have to meet the latest UL/FM standards for the United States and ATEX certification for the rest of the world. You’ve said that Powerwise has managed to “stay under the radar” locally while maintaining a successful international business. Please explain. Although operated from Erie, we manufacture parts in the UK and India. We are able to supply business to several local machine shops and other parts suppliers. We have stayed under the radar because we have no local customers. They are mostly out of state with the southern states and Ontario, Canada being the largest customer base. Pumps are shipped from Erie, Pennsylvania and London, England. How has technology impacted your business? As much as 80 percent of our business is via the Internet. We purchased several domain names including powerwise.com, inkpump.com, powerwiseinkpumps.com, inkpump.co.uk and domains for other countries. We use mainly Google ads to keep us close to the top on any search for “ink pumps.” We also use Google ads in French, Spanish and German. We actively track using online analytics and provide most of our sales and technical backup via email or FTP (file transfer protocol). We work with agents around the world using Skype. How important is research and development to your operation and your company’s future? We are constantly striving to update products and see our sales future as an online company. For more information about Powerwise Ink Pumps, please visit www.powerwise.com or call 814/833-3715.
VOL. X XIV, NO. 5 MAY 2011 Manufacturer & Business Association Board of Governors
Editor in Chief
Executive Editor
Managing Editor & Senior Writer
Yvonne Atkinson-Mishrell John Cline Dale Deist Bill Hilbert Jr. Timothy Hunter Dan Ignasiak Richard Knight J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Phil Tredway Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org
Contributing Writers
Angie Angus Sandra Caffo Jessica Crocker Jon Woodard
Photography
Ron Stephens La Mirage Studo 814/835-1041 Karen Torres Powerwise Ink Pumps
Advertising Sales
Design, Production & Printing
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net
ON THE COVER: Maxpro Technologies President Paul Bowser recently has expanded his Fairview, Pennsylvania-based company, which has become a major supplier of liquid pumps, gas boosters, air amplifiers, high-pressure valves, fittings and tubing, as well as custom package systems. For full story, see Page 8. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2011 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
May 2011 > www.mbausa.org > 3
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Business Buzz A conversation w ith
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We cordially invi te you to join us
Tuesday, June 28,
STUART VARNEY
2011
for our 106th Annual Event at the Bayfront Convention Cen ter. 5:30 p.m. Mem ber Cocktail Rec eption 7 p.m. Keynote Address
Reservations:
814/833-3200
• 800/815-266 0
Major Sponsors
Event Sponsors
MBA ANNUAL EVENT IS SOLD OUT FOR 12TH STRAIGHT YEAR The Manufacturer & Business Association (MBA) recently announced that its 106th Annual Event, featuring keynote speaker Jack Welch, former chairman and CEO of General Electric, on June 28 at the Bayfront Convention Center in Erie is sold out. This marks the 12th consecutive year that the event, the tri-state region’s premier business networking event, has been a sellout. For more information about the Association or the Annual Event, please visit www.mbausa.org. SMITH PROVISION CO. PLANS TO MOVE PRODUCTION Smith Provision Co., headquartered in Erie, has purchased the former OEM/Erie building and plans to move production into a 50,000-square-foot section of the building, and reserve an additional 25,000 square feet for future expansion. According to President Mike Weber, the company’s current production building is too small to handle the increased volume – sales are up nearly 10 percent over the past year – of Smith’s hot dogs, hams and cold cuts. Part of that increase is attributed to the expansion into the Pittsburgh market. In August 2010, Smith Provision Co. signed an agreement to become the official hot dog provider of the Pittsburgh Penguins and the Consol Energy Center; a year earlier, it was named the official hot dog provider of the Petersen Events Center and the University of Pittsburgh. For more information, visit www.smithhotdogs.com.
DEPARTMENTS > Contact: Jessica Crocker
KRAUS DEPARTMENT STORE MARKS 125TH ANNIVERSARY Founded in 1886 by Edward Kraus, Kraus Department Store, 810 Parade Street in Erie, is marking its 125th year in business with a storewide celebration sale this month. The store, which is known around the region, “as the place to go when you’re looking for those hard-to-find items,” provides customers with home fixtures; paint, plumbing and electrical supplies; professional hardware; and small appliance, screen and window repairs. Today, the business is co-owned by Tom and Joe Nowosielski, fourth generation members of the Kraus family. For more information and store hours, call 814/453-4314. MOORE RESEARCH PROMOTES REGIONAL GROWTH WITH $10,000 GRANT Erie, Pennsylvania-based Moore Research Services, a full-service research company, recently announced that it is offering a
grant for its research services equivalent to $10,000 in value. According to President Colleen Moore Mezler, “We are fortunate to be in the position to give back to our community and thrilled to offer this opportunity for businesses in northwest Pennsylvania. A customized research program will be designed based on the recipient’s needs. This could include focus groups, taste tests, mystery shoppers or telephone surveys, depending on the recipient’s needs.” The research grant is open to any forprofit or nonprofit business in northwest Pennsylvania. Applicants should demonstrate their commitment to customer care, growth potential, ability to improve product/service, and community involvement. To apply, visit Moore Research Services at www.moore-research.com, email Lindsay@moore-research.com or call 814/835-4100. Applications are due by May 30, 2011. The winner will be announced by June 20, 2011.
TECH MOLDED PLASTICS, INC. ANNOUNCES EXPANSION Meadvillle, Pennsylvania-based Tech Molded Plastics, Inc., an ISO 9001:2008 certified injection molded plastics company, has acquired an adjoining facility formerly owned by Trojan, Inc., DIC Tool Division, which almost doubles Tech’s total footprint in the area to more than 92,000 square feet.
In 2010, Tech’s growth included more than $1 million in self-funded The Tech Molded Plastics, Inc. facility in Meadville is improvements in plasticizing undergoing a major expansion. technology, computerized monitoring of plastics processes, and training. The acquisition of the co-located production facility includes more than $1.5 million of additional improvements that is being funded locally. According to the company, Tech plans to prep the expanded production space for specialized molding capabilities in a clean, climate controlled environment for precision medical, automotive, and electronics products. Two new high precision molding machines will be added shortly, with another four to six to follow as the building is modified to support specially designed molding systems with cavity pressure sensing technology. The family owned business currently employs more than 100 people with 28 fulltime employees added in 2010 with support from 35 temporary workers. With the facility expansion in place for 2011, Tech plans to add an additional 27 employees in the next few months and convert more temporary workers to full time by reducing short-term employment. For more information, visit www.ttmp.com. May 2011 > www.mbausa.org > 5
Health Matters
EDITORIAL > by Sandra Caffo
Partner Violence and Its Impact on the Workplace Partner violence – also known as “domestic violence” – has historically been viewed as a personal issue associated with someone’s home life. But, while it is true that partner violence often occurs in and around a home, it doesn’t stay at home when the victim and the abuser go to work. Partner violence is a workplace issue because the behavior of the person being abused or the abuser disrupts the workplace and is costly to employers. Partner violence is a pattern of abusive behavior that is done by one person to control a partner. It is not about being angry. It is not an over-reaction to a partner making a mistake. The goal is for the abuser to let the partner know who’s in charge. This behavior can be physical, sexual, psychological or emotional. Most often the abuser is a man and the victim is a woman, but there are female abusers as well. Partner violence happens in all types of relationships and touches all economic groups. Direct and Indirect Costs Every workplace, regardless of size, can be impacted by partner violence. According to statistics from Standing Firm – an organization in southwest Pennsylvania that is dedicated to addressing partner violence as a workplace issue – more than one in five full-time employed adults have been victims of partner violence and 64 percent
of those say that their work performance has been significantly impacted as a result. This includes receiving harassing phone calls, emails and text messages at work to having the abuser come to the partner’s worksite and verbally or physically assault that employee. Employed abusers have told researchers that they have misused company time and resources – such as phones, computers, email and automobiles – to remind the partner that they are always present. Partner violence costs employers directly and indirectly. Direct costs include hospital visits required by the abused individual and the cost of ongoing care, absenteeism and presenteeism. Many times abused employees are not productive at work because they may have been up all night protecting themselves from or being harassed by the abuser. Co-workers also are affected. Because so many people work in cubicles rather than offices, many times co-workers overhear threatening phone calls to a person near them. They don’t know what to do to help and may be fearful for their safety as well as their coworker, worried that the abuser might come to the workplace and harm them both. This raises the stress level for everyone and interferes with workplace focus and productivity.
work force are being affected by partner violence and build on that recognition by putting a plan in place to address the issue. This includes developing a policy and should involve human resources staff, managers, security and an employee assistance program (EAP), if you have one. The EAP will assist the employer to develop a plan of action including a policy. It helps both the employee being abused as well as the employee who is the abuser get help, thereby making it a worthwhile and effective company investment. For information about resources in southwestern Pennsylvania that deal with this issue, visit www.standingfirmswpa.com.
Sandra Caffo is senior director for LifeSolutions, a UPMC WorkPartners affiliate. UPMC WorkPartners is part of the integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products. These include UPMC Health Plan, UPMC for You, Askesis, Community Care, UPMC Dental Advantage, and E-Benefits.
How an EAP Can Help Employers need to recognize the ways that the workplace and May 2011 > www.mbausa.org > 7
Maxpro Technologies currently employs a total staff of 24 – 18 in Pennsylvania, six in the Gulf Coast – and recently underwent a 4,800-square-foot expansion at its Fairview headquarters.
High Pressure is Their Business Maxpro Technologies President Paul Bowser is a successful businessman who believes customer service is priority No. 1.
for such high-growth areas as the Marcellus Shale — one of the United States’ most promising natural gas resources in the Appalachian Basin.
His approach is evident by his team’s commitment to quality and delivery in the high-pressure equipment business — be it for an emergency sameday order or a custom designed system that will be shipped in record time.
“Our company’s success,” explains Bowser, “is strictly related to the markets that we serve and our service to the marketplace.”
“At Maxpro,” Bowser says, “we all share the same philosophy and that is taking care of the customer and getting the job done.”
Maxpro, which began as a two-person operation in Erie, Pennsylvania in 1995, has experienced solid sales growth throughout the last 16 years with equity partner and major supplier Maximator® GmbH, based in Nordhausen, Germany. During its startup days, the company quickly outgrew its EBCO Park location in Erie and within six years moved to its current headquarters on 2.3 acres located at 7728 Klier Drive South in the Fairview
The Maxpro Companies — with operations in Fairview, Pennsylvania and Houston, Texas, and a satellite office in Lafayette, Louisiana — is the distributor of Maximator® liquid pumps, gas boosters, air amplifiers, high-pressure valves, fittings and tubing, for the United States, Canada and Mexico. The company also supplies custom high-pressure systems that are designed and packaged by its engineering team.
Solid Growth and Customer Service
Maxpro products are in demand by a wide variety of industries including the onshore/offshore oil and gas markets; plastics, automotive, aerospace, highpressure water jet and food-processing industries; as well as the components for cold and hot isostatic presses. There also is a great need in the general industrial market where there are many high-pressure applications. Maxpro’s engineered systems are most commonly used for pressure testing of components. The products also are used for the boosting of industrial gases such as nitrogen, helium, hydrogen, and pure oxygen for use in the airline and diving industries. Other applications include gas-assist plastic injection molding, bolt tensioning, gas recovery, gas-strut charging, turbine gear and bearing removal. Maxpro products are even being used to support equipment 8 < www.mbausa.org < May 2011
Maxpro Technologies Engineering staff has years of industry experience. From left, are: Don Nixon, Jim Karle, Ken Hoovler, Jim Dunn, Kevin Wilson and Greg Soltys (seated).
Business Park, just north of Interstate 90. In 2000, the company expanded to the Texas Gulf Coast, and later added its satellite office in Louisiana. Currently the Maxpro Companies employ a total staff of 24 – 18 in Pennsylvania and six in the Gulf Coast. Its newly expanded 13,300-square-foot Fairview facility, which also serves as the company’s headquarters, houses Maxpro’s administrative, sales, customer service, assembly, repair and engineering departments, including a staff of five engineers and one designer. “Initially, when we moved into this facility we had 6,500 square feet and weren’t sure what we were going to do with all the space that we had,” notes Bowser. “Two years later we were out of space and put on a 2,000-square-foot addition. After the most recent addition of 4,800 square feet, built by the local firm of David J. Haller Construction, we still have room to expand.” The continued growth is a credit to Maxpro’s reputation and performance in the high-pressure business in which it has carved its niche. The company consistently meets or exceeds customer expectations with service and delivery that outperforms the industry norm. On average, 85 percent of incoming orders for standard products – such as pumps, boosters, amplifiers, valves, fittings and tubing – are shipped the same day. Aftermarket repairs take approximately three to five days, or same day for an emergency, while custom design systems generally ship in two to six weeks, depending on the complexity. “Delivery is what has gotten us to where we are at in the business right now,” notes Mike Bowser, vice president of Operations. “Our goal is to deliver a quality product to the customer as soon as possible, so response time is critical.” Case in point: Recently a service company operating in the Marcellus region purchased a pressure system from Maxpro for testing well-head components. The customer was so impressed with the capabilities of the unit and the reliability of the testing process that they quickly ordered a second unit for another testing facility. Maxpro responded by building and delivering the system within two weeks. “We were able to respond quickly because we stock the components required to get it done right away – all the way through the installation and training at the customer site,” says Mike Bowser. In order to maintain such an extensive inventory, the company has a strong relationship with Maximator® as well as other major suppliers. Maxpro has established a solid logistics network that enables inventory to flow in and out as needed. “It is definitely a challenge to know how much of everything to have on hand,” says Mike Bowser, “but our inventory allows us to satisfy our customers and deliver the products in a timely manner.”
Reputable Sales and Service
Maxpro’s National Field Sales Manager Mark Maloney, whose background includes mechanical engineering and technical sales, acknowledges that it’s Maxpro’s customer service, competitive pricing and product availability that play a critical role in the company’s success. Maxpro relies on its technical and engineering base to distinguish it from its competitors. Maxpro utilizes a distributor network of authorized resellers throughout North America to market its products. These independent businesses are
Maxpro’s management team includes National Sales Manager Mark Maloney, Vice President of Finance Eileen Flanagan, Vice President of Operations Mike Bowser, President Paul Bowser and Engineering Manager Greg Soltys.
not “catalog” distributors but engineering sales companies that know the technical aspects of the high-pressure business. “Our distributors receive annual training and updates to help maintain product knowledge,” says Maloney. This is supplemented by monthly product application bulletins and press releases.
System Application and Design
Equally impressive is Maxpro’s technical support staff. The company employs a technical team for repairs, aftermarket maintenance and system assembly and testing. Nearly one-third of the company’s Fairview employees are degreed engineers, with two being licensed professional engineers, each with more than 25 years of industry experience. The engineering team, led by manager Greg Soltys, is dedicated to providing prompt high-pressure application advice for individual products such as liquid pumps, gas boosters, and air amplifiers, in addition to working with customers and distributors to design specialized systems. The normal use of its products goes into a variety of high-pressure industrial applications, enhancing production line performance with higher pressure hydraulics, liquids, industrial gases and shop air. >
Maxpro Technologies, Inc. Headquarters: 7728 Klier Drive South Fairview, Pennsylvania 16415 About: The company was founded in 1995 to serve as the exclusive North American distributor for Maximator® liquid pumps, gas boosters, air amplifiers and high-pressure valves, fittings and tubing. Maxpro also supplies various custom high-pressure, airdriven systems that are designed by its in-house engineering team. Employees: 24 nationwide, including 18 at Maxpro Technologies in Fairview, Pennsylvania; and six total at Maxpro South in Houston, Texas and its satellite office in Lafayette, Louisiana. Markets Served: Primarily onshore/offshore oil and gas markets; plastics, automotive, aerospace, high-pressure water jet and food-processing industries; components for cold and hot isostatic presses; research and development laboratories; and, the general industrial market. Phone: 814/474-9191 Fax: 814/474-9391 Website: www.maxprotech.com Email: sales@maxprotech.com May 2011 > www.mbausa.org > 9
Maxpro Technologies’ service team for repairs and system assembly can turn around repairs in approximately three to five days, or same day for an emergency. From left, are: Rob Wynne, Doug Hartley, Darren Humphreys, Joey Ickewicz and Supervisor Ray Garske.
Incoming inquiries come from a wide array of research projects at national labs, private labs and universities, which involve many new technologies that require systems tailored to a very specific application. The depth of experience and diverse engineering backgrounds allow Maxpro to offer support on most challenging high-pressure applications. “However, we have an appropriate fit in industry and often times we just have to recommend an alternate product. Customers appreciate that honesty as well,” says Soltys. New and Emerging Markets As new efforts to save energy are getting higher visibility, companies can look to Maxpro to achieve lower cost solutions to efficiently obtain higher pressure exactly where needed without the huge expense of large capital equipment. For example, Maxpro systems can reduce the expense for large high-pressure compressor equipment by offering point of use solutions, and offer them in a few days turnaround. One reason for such a steady volume of business is Maxpro’s persistence in expanding its customer base and exploring new and emerging markets and applications within the industries it serves. The most recent example is the increasing activity in Marcellus Shale development — a territory essentially found in Maxpro’s backyard. Many of the operating companies are Texas-based, according to Maloney, and they are pleased to learn they can obtain test equipment in Pennsylvania. “The need for systems that can test the components used in the Marcellus fields and create reports recording pressures during tests is important to these customers.” Maxpro also is expanding to stock items that are of particular interest to this market segment, such as high-pressure hose and fittings. “Any time well-head equipment is repaired it requires pressure testing prior to going back online, hence the need for Maxpro’s product,” Maloney notes. “The growth of Marcellus Shale has created new markets for us in Pennsylvania, Ohio, and West Virginia.” Other markets continue to hold significant prospects as well, including companies that are looking to switch from electric to cost-efficient air-driven systems. Companies are pleased to find out they are able to relatively seamlessly transition to a Maxpro product with quick delivery and great service.
Eileen Flanagan, vice president of Finance, adds, “At Maxpro we are small enough that we can react quickly to the emerging markets we are finding. This has resulted in the highest first quarter sales in our company history.” Investment in the Future Maxpro prides itself on not only the quality of its products, but also the quality of the products that the company purchases from its suppliers. Flanagan goes on to say, “We utilize the products and services of many local companies. This allows us to easily communicate our needs with the vendor and also helps to support the local economy. Our fabrications, powder coating and many other components all come from companies located in the Erie area.” “We also pride ourselves on our employees,” adds Flanagan. “Every person working at Maxpro Technologies does his or her best to see to it that the customer is served in a considerate and timely manner. Part of our financial success comes from the fact that everyone — from the president on down — is willing to do whatever it takes to get the product to the customer. It’s not just about the sale, but the service that goes with it before, during and after the order ships.” According to Maxpro Board member and outside accountant John Guelcher, one of the founders of K2S, PC in Erie, Maxpro’s financial position and condition is extremely strong and it always has been. “I think that’s a result of not only Paul but everybody out there,” notes Guelcher, “and keeping focus on the things that are important and not wasting time and money on things that are not going to generate a return.” Indeed, Maxpro has invested heavily in its online presence and its work force to make sure that its level of service is achieved. Today, an estimated 75 percent of the company’s business is from email or the Web. Likewise, Maxpro’s work force consists of many longtime employees with more than 287 combined years of experience in the high-pressure industry. In return, the company pays competitive wages, bonuses, vacation time and 100-percent health-care benefits — medical, vision and dental — for employees and their families. “I say this repeatedly that it is not just Paul Bowser, it is the dedicated employees that have grown this company successfully,” notes Maxpro’s founder. “We hire good people and retain good people.” It is this culture of community and teamwork that powers the company forward as it strives to improve and maintain its level of commitment to the industries that it serves. Because, at Maxpro Technologies, high pressure is their business. For more information about Maxpro Technologies, visit www.maxprotech.com. Maxpro’s administrative and marketing team plays a critical role in customer service, finance and a strong Web presence. From left, are: Connie McDonald, Jan Pytlarz, Diane Pietkiewicz and Eileen Flanagan (seated).
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Recently, First National Bank was identified among the Best U.S. Banks by Forbes.com and we are proud to
attribute these accolades to the success of our clients. Our strength enables us to accommodate your corporate banking needs.
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Find out for yourself what makes First National Bank so special. We will coordinate an experienced corporate banking team that will consider comprehensive resources and apply innovative solutions including treasury management services, mezzanine financing, asset based lending and wealth management, to arrive at a package of services for your specific needs. Those are just a few of the many reasons why companies like yours single us out as their bank of choice. Find the trusted, dedicated relationship your company deserves, at First National Bank. To learn more visit fnb-online.com or call 866.362.4605.
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A S S O C I A T I O N
T R A I N I N G
S C H E D U L E
Training That Develops Effective Leaders “Investing in management education for both new and seasoned leaders has not only influenced corporate success, but has contributed to many successful career paths. The MBAUSA programs are high quality, accessible and affordable. That translates into great value.” – Gary M. Maras, Chief Executive Officer, Medicor Associates Inc.
IE and RIES - ER E S S Knapp L n IL K ro S a h Y S l, ISOR ugh Ria SUPERV uates H ociates Inc. D d IE ra IF g T , R s tes Inc. win CE dicor As Associa ft: Lisa Ir le Me edicor ckwell, w, from aras, M M Front ro and Cheryl Ro ry a G s, ski and Ed Mara eff Muro J : ft le w, from Back ro
“As a young professional new to the work force, I feel that I was lucky to have the opportunity to develop leaderships skills in a class like this. The diversity of experiences of everybody in the class provided me with an incredible sense of how things work, and how I can be a truly effective leader in the modern business world.” – Ed Maras, Administrative Associate, Medicor Associates Inc.
As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.
Blue Ocean Strategy Center
M A N U F A C T U R E R
June
Professional Development Certified Supervisory Skills Series Course II Course III (Corry) Course III (Meadville) Course IV Course IV (St. Marys) Course V Course V (Williamsport)
6/2 and 6/9 6/7 and 6/14 6/7 and 6/14 6/22 and 6/29 6/21 and 6/22 6/21 and 6/30 6/8 and 6/9
Price: $230 Members, $325 Nonmembers
&
B U S I N E S S
July
Professional Development Certified Supervisory Skills Series Course III Course IV (Meadville) Course IV (Corry) Course V (St. Marys)
Price: $230 Members, $325 Nonmembers
7/21 and 7/28 7/12 and 7/19 7/12 and 7/19 7/26 and 7/27
Leadership for Team Leaders Course V (Franklin) Course V (Warren
7/8 7/22
Food Safety Certification
7/18
HR Essential Certification Series: Effective Interviewing & Hiring Techniques
7/21
Price: $155 Members, $275 Nonmembers
Leadership for Team Leaders Course III (Warren) Course III (Franklin) Course IV Course IV (Warren) Course IV (Franklin)
6/3 6/3 6/30 6/24 6/17
Food Safety Certification
6/20
Price: $155 Members, $275 Nonmembers Price: $125 Members, $175 Nonmembers
HR Essential Certification Series: Terminations – Keeping it Legal Compensation & Benefits (Williamsport) Discrimination & Harassment (Williamsport)
6/2 6/8 6/9
Price: $70 Members, $140 Nonmembers
Computer Access 2003 Level II (Two Days)
6/23 and 6/30
Price: $310 Members, $425 Nonmembers
Excel 2003 Level II Excel 2003 Level III Excel 2007/2010 Level III PowerPoint 2007/2010 Level II Word 2007/2010 Level I
6/7 6/16 6/9 6/2 6/21
E-Learning: Excel Basics (10 to 11 a.m.)
6/14
Price: $155 Members, $275 Nonmembers Price: $45 Members, $95 Nonmembers
A S S
Price: $125 Members, $175 Nonmembers
Price: $70 Members, $140 Nonmembers
Computer Access 2003 Level III Excel 2003 Level I Excel 2007/2010 Level III Word 2007/2010 Level II
7/28 7/21 7/19 7/26
E-Learning: Excel Basics (10 to 11 a.m.) E-Learning: Windows Basics (10 to 11 a.m.)
7/20 7/7
Social Media Webinar (8 to 10 a.m.)
7/27
Price: $155 Members, $275 Nonmembers
Price: $45 Members, $95 Nonmembers Price: $30 Members, $60 Nonmembers
Introduction to Microsoft Vista: “I now don’t feel intimidated by Vista. I feel empowered by it and can’t wait to use what I’ve learned.”
Unlocking the Power of Blue Ocean Strategy Webinar During this free, one-hour Blue Ocean Strategy (BOS) overview, our instructors present both a proven analytical framework and the tools for successfully creating and capturing blue oceans of opportunity.
learn the methodologies, concepts and tools of BOS and how to utilize them during the Visual Awakening, Visual Exploration and Visual Creation phases. Upon completion of the course, attendees will be prepared to implement the first three phases of Blue Ocean Strategy within their own company or organization.
Module I This accelerated Blue Ocean Strategy course combines 20 hours of instruction and experiential learning with up to eight hours of company specific remote support following the session. Participants will
Prerequisite: Participants must have read Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, viewed a one-hour overview webinar, and completed a list of questions on BOS prior to attending the workshop.
— Carey Pelletier, Commercial Turf Fertilization
Module 2 This course guides participants through the final phase of Blue Ocean Strategy implementation, Visual Execution. Six to eight hours of customized, instruction and support will be provided during mini work sessions that are conducted remotely to make them timely and economical. Upon completion, participants will be prepared to complete the BOS implementation process in order to create uncontested market space while minimizing their risk. Prerequisite: Module 1.
For upcoming class information or to register, visit mbausa.blueoceanstrategy.com.
S O C I A T I O N
T R A I N I N G
Training
August
Professional Development Certified Supervisory Skills Series Course IV Course V Course V (Meadville) Course V (Corry)
Price: $230 Members, $325 Nonmembers
Leadership for Team Leaders Course V
Price: $155 Members, $275 Nonmembers
Food Safety Certification
Price: $125 Members, $175 Nonmembers
HR Essential Certification Series: Compensation & Benefits
8/11 and 8/18 8/3 and 8/10 8/16 and 8/23 8/2 and 8/9
8/4 8/15
8/18
Price: $70 Members, $140 Nonmembers
Computer Access 2003 Level I Access 2007/2010 Level I Excel 2003 Level II Excel 2007/2010 Level II Excel 2007/2010 Level III Word 2007/2010 Level I Word 2007/2010 Level II
8/4 8/2 8/23 8/11 8/30 8/9 8/25
QuickBooks 2010
8/19
Price: $155 Members, $275 Nonmembers Price: $175 Members, $295 Nonmembers
QuickBooks: “I personally liked being able to follow along on my own computer and being able to try it with examples.” — Bethany Stutzman, Sign Here Inc. Certified Supervisory Skills Series: “Everything from the material provided to the instructors was first class. I still find myself referring back to the material with all my notes for direction on situations. The class size was small enough to receive individual attention but large enough to have a diverse range of thoughts and ideas from the others. The instructors were enthusiastic, very professional and kept your interest at all times, you couldn’t ask for anything better.” — Jack Tomasik, Signal-Tech
S C H E D U L E
Regional Locations All courses are held at the MBA Conference Center in Erie, unless otherwise noted. Erie:
MBA Conference Center 2171 West 38th Street
Butler:
Fairfield Inn Route 8 at Route 422
Corry:
Corry Higher Ed Council 221 North Center Street
Dubois:
Dubois Diner 150 W. DuBois Avenue
Franklin:
Franklin Industrial & Commercial Development Authority 191 Howard Street
Kittanning:
Armstrong Educational Trust 81 Glade Drive
Meadville:
Hampton Inn Route 322
St. Marys:
Community Education Council 4 Erie Avenue, Suite 200
Warren:
Warren/Forest Higher Education Council Curwen Building, 2nd Floor 185 Hospital Drive
Williamsport:
MBA Williamsport Office 2401 Reach Road
Onsite Training Get more flexibility and convenience with our onsite training options. Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction. • Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses Whether you need a half day or full day of professional development or computer training — let our expert trainers come to you!
Course Registration Contact Ann Miaczynski at 814/833-3200, 800/815-2660 or amiaczynski@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.
E-Learning Training COMPUTER COMPUTER TRAINING
How you need it. When you need it. Where you need it.
Word Levels I, II, III Excel Levels I, II, III Access Levels I, II, III Outlook And much more!
Now Offering E-Learning Courses Are you on a need-to-know basis? As in, you only have time to learn the things you absolutely need to know? You’re not alone. Our increasingly busy work days don’t leave much time for learning new programs or keeping up with changing technology – until now. Our new one-hour Microsoft Excel E-Learning Course covers all the essentials, and all from the comfort of your own office. Master the seven basic steps to formulas, the AutoSum and AutoCalculate functions, and sorting and filtering features in less than 60 minutes. Intro to Formulas • Seven Basic Steps • Sales/Profit/Commission Examples Intro to Functions • AutoSum • AutoCalculate Intro to Sorting/Filtering • Sorting by one column • AutoFilter For more information, visit www.mbausa.org. Upon registration, you’ll receive a PDF of the course manual and a link to join the online presentation.
The WorkCenter’s Mobile Unit
The WorkCenter at Susquehanna Health: Specialists in Occupational Health Services Simplify the challenges of relocating and hiring workers by choosing Susquehanna Health as your healthcare partner. With the drive to provide employers the best and most cost-effective service, The WorkCenter at Susquehanna Health offers occupational health services designed with you and your business in mind. Whether you represent a large manufacturing facility or are a small business owner, our specially trained staff will help establish comprehensive employee health, drug and alcohol testing, wellness and work-related injury management and prevention programs targeted to the unique needs of your company and workers.
Services for Your Business & Employees The WorkCenter has the expertise and services to help you keep your workers healthy, safe and in compliance with state and federal regulations. • The WorkCenter’s mobile unit brings medical services and testing to your work site.
• Emergency care at two regional hospitals.
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• Drug and alcohol screenings. • Vision and hearing tests.
• Convenient, advanced imaging services for fast diagnosis.
• Workers’ compensation panel of specialists with supportive diagnostic and therapeutic services.
• Decontamination unit for hazardous materials exposures.
• Physical therapy for a quick, safe return to work.
Providing Comprehensive Medical Care You’ll maximize productivity and keep costs low through our network of three high-quality hospitals and more than 200 doctors. Susquehanna Health is a leading regional medical system offering complete healthcare services including preventive, emergency and rehabilitative care for you and your employees.
Make The WorkCenter at Susquehanna Health your trusted healthcare partner. Find out more at SusquehannaHealth.org/WorkCenter or call (570) 320-7444.
Legal Brief
EDITORIAL > by Jon Woodard
Protecting Your Industrial Designs in the United States, Europe and Around the World When most people think of patents, they think of utility patents, which in the United States and in most foreign countries protect functional aspects of inventions. Some example inventions that would be eligible for utility patent protection include a more efficient automobile engine, a new drug for treating cancer, and a method of controlling microprocessors to increase the speed of computers. Industrial designs are different as they relate to appearance rather than function. In the United States, industrial designs are usually protected with design patents, which protect only the ornamental or aesthetic qualities of an article. Though less widely known than utility patents, design patents can be effective and very economical tools for developing international marketing strategies for new products. Industrial Design Basics Examples of articles protected by design patents in the United States include automotive bodies, the shapes of soda bottles and designs for furniture. However, as design patents protect only appearance, they would not protect the aerodynamic qualities of the automotive bodies, the increased storage or gripping qualities of the soda bottles, nor the improved comfort and durability of the furniture. Industrial design registrations corresponding to U.S. Design Patents are available in most foreign countries and several regional intellectual property systems. Depending on jurisdiction, they may be called design patents, industrial designs, design registrations, design certificates, or just simply designs. Design Patents in the United States The overall cost to secure a U.S.
Design Patent is typically much lower than for a utility patent. Design patent applications do not require much written content beyond a single claim, drawings and a few short drawing descriptions. Official government fees also are considerably lower for designs. Although examiners review U.S. Design Patent applications, they are far less likely to be rejected or scrutinized prior to allowance. Unlike a utility application, it is not unusual for a design application to be allowed after an examinerâ&#x20AC;&#x2122;s initial review. Once issued, U.S. Design Patents remain in force for single, 14-year nonrenewable terms and are not subject to maintenance fees. Industrial Designs in Europe and the International Arena International filing requirements, examination standards, registration terms and enforcement standards against infringement vary greatly for designs. A patent attorney should be consulted before embarking on any international design registration activity to coordinate complex and often incompatible requirements between international jurisdictions. The Paris Convention for the Protection of Industrial Property is a treaty that allows grace periods for filing utility patent and design applications in additional countries after an initial application has been filed in a first â&#x20AC;&#x153;priorityâ&#x20AC;? country. The Paris Convention allows a one-year grace period for utility applications, but limits the grace period to sixmonths for designs. U.S. Design Patents are considered industrial designs under the Paris Convention.
countries of the European Union (EU). The OHIM applies to industrial designs but not to utility patents. OHIM Design Applications allow for a single application to be filed in a single official EU language, such as English. Upon registration, an OHIM Design Registration becomes enforceable in all the member countries of the EU. In some narrow circumstances, the OHIM also allows for the filing of a registration to be delayed for up to three years after the first public disclosure of a design. For a nominal fee, it also is possible to combine several U.S. Design Patent Applications into a single OHIM design application. By allowing additional time for planning and by reducing the overall number of applications to be filed, such international systems can significantly reduce, offset, or delay the overall costs of securing and maintaining international protection for industrial designs. For more information about patents and industrial designs, please contact Jon Woodard at MacDonald, Illig, Jones & Britton, LLP at 814/870-7664 or jwoodard@mijb.com.
Jon Woodard is a partner with the law firm of MacDonald, Illig, Jones & Britton, LLP. A registered patent attorney, Woodard focuses his practice on various areas of U.S. and international intellectual property law.
Another international registration system is the Office for Harmonization in the Internal Market (OHIM), which serves as a central design registry for May 2011 > www.mbausa.org > 15
HR Connection MOBILE DEVICES TOP CPAS’ TECH SURVEY RANKINGS CPAs and financial executives for the first time rated the proliferation of smartphones, tablet computers and mobile devices in the workplace as their top business technology concern, according to the AICPA’s 2011 Top Technology Initiatives Survey. Mobile devices edged out information security, which had topped the list of tech concerns several years in a row. The findings were based on responses from nearly 1,400 CPAs nationwide specializing in information technology. The initiatives included in the survey are intended to represent the CPA's unique perspective regarding what they believe will impact financial management and the fulfillment of
16 < www.mbausa.org < May 2011
other fiduciary responsibilities such as safeguarding of business assets, oversight of business performance, and compliance with regulatory requirements. Although mobile devices topped overall survey rankings for the CPA profession, CPAs in public practice worry about data retention while CPAs in business and industry consider information security as a key concern.
SURVEY HIGHLIGHTS ‘CLOUD’ MOVEMENT FOR SMALL AND MIDSIZE BUSINESSES Nearly 40 percent of global small and midsize businesses (SMBs) will pay for one or more cloud-computing services – resources hosted ondemand via the Internet – within the next three years, according to a recent Microsoft Corp. survey.
According to the SMB Cloud Adoption Study 2011, which polled more than 3,000 SMBs with 250 or fewer employees in 16 countries, including the United States, 39 percent will leverage at least one cloud service within three years. That percentage coincides with other market estimations that predict that SMBs will be the fastest-growing segment for cloud adoption in the coming years. AMI Partners, for example, estimates that SMB cloud spending will approach nearly $100 billion by 2014. The 39 percent of SMBs expected to utilize cloud services is an increase over the 29 percent that currently use at least one cloud-computing offering. Additionally, the number of cloud services that SMBs will pay for will nearly double in many countries over the next three years.
DEPARTMENTS > Contact: Stacey Bruce
Send a Much More Powerful Message to Your Employees Than Email Here’s a challenge for all of you managers out there: Pick a day and try to get through it without writing an email. Not even one. Impossible, you say? Maybe, but it wasn’t that long ago when we were all communicating without email and, believe it or not, things still got done – just not as quickly or efficiently as you’d probably like. As much as I use email, the lack of personal contact that technology has enabled frequently disturbs me. We have gotten so used to communicating every message electronically that personal conversations, phone calls and handwritten notes are becoming a lost art, used only if there is no technology available. While any recognition from a
superior is welcome, it means much more when they take the time to leave their office, walk down to my office, and thank me for a job well done. As a manager, you have to agree that it is much easier to make your point when you are face to face with one of your staff members as opposed to crossing your fingers once you hit the send button. When was the last time you wrote a handwritten thank-you note to one of your employees for going above and beyond? While they might delete a thank-you email, there’s a good chance that handwritten note will be saved and read again and again. So, the next time you are about to hit the send button, ask yourself
what message you are really sending. The answer just might make you get out of that chair. For more information about strategies to engage and empower your employees, contact the Association’s Professional Training Department at 814/833-3200, 800/815-2660 or visit www.mbausa.org for course information.
Dan Monaghan is the director of Training at the Manufacturer & Business Association.
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GET GET YOUR DUCKS DUCKS IN A ROW. Tax day has come and gone. The stress of April 15th may be over. Tax day has come and gone. The stress of April 15th may be over. But, believe it or not, NOW is the best time to think about next year’s But, believe it or not, NOW is the best time to think about next year’s tax season. The process is fresh in your mind. You may have tax season. The process is fresh in your mind. You may have unanswered unansweredquestions. questions.You Youmay mayhave have missed missed opportunities. opportunities. Let P.C. Letthe theexperts expertsofofSchaffner, Schaffner,Knight, Knight,Minnaugh Minnaugh & & Company, Company, P.C. help thoroughly helpyou youprepare prepareand andplan planfor fornext nextyear year — — NOW. NOW. We We will will thoroughly review We will will reviewyour yourpersonal personaland andbusiness businessplans plans and and strategies. strategies. We help and tax tax helpyou youevaluate evaluateyour yourbusiness businessfor forwealth wealth preservation preservation and planning planningopportunities. opportunities.
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relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP. relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.
OntheHill
DEPARTMENTS > Contact: Lori Joint
If You Tax It, They Will Leave Lowman S. Henry is chairman and CEO of the Lincoln Institute and host of the weekly â&#x20AC;&#x153;Lincoln Radio Journal." Contact him at lhenry@lincolninstitute.org.
"If you want to go to work, you can find a job." How many places in Pennsylvania, in fact in America, can make that boast? They can in Bradford County where County Commissioner Doug McLinko explains that drilling for gas in the Marcellus Shale deposit has been an economic boom for his region â&#x20AC;&#x201C; this while the rest of the nation suffers through the biggest recession since the Great Depression. One reason for the boom is that Pennsylvania has not killed off the still developing natural gas industry by enacting a severance tax that would make the activity less profitable and choke off or at least slow down the economic development which is currently taking place. But,there is growing political pressure to enact additional taxes on gas drillers. It should be pointed out that the companies drilling in the Marcellus Shale region are already paying every tax that is levied on every other business in the state. Severance tax supporters portray the gas companies as virtual robber barons who are pillaging Penn's Woods' natural resources and paying nothing for the privilege. That is simply not true. Pennsylvania has some of the highest corporate taxes in the nation. In fact, we are the only state to impose both a Corporate Net Income Tax and a Capital Stock and Franchise Tax. The oppressive nature of the Commonwealth's taxes is one reason why our economy has struggled in recent decades. Proposed steep cuts in K-12 public education and state support for higher education have added to the pressure for enactment of a severance tax. But the education community in Pennsylvania has been living high off the hog for many years, receiving budget increases far above the rate of inflation during both good times and bad. The education establishment finally got too greedy by attempting to incorporate temporary federal stimulus money into its funding base, and now must deal with budget cuts. The two issues should not be intermingled. No one industry in Pennsylvania should be singled out to pay for the overspending by state government in education and
other areas. To over-tax gas drilling would simply put the brakes on development of the resource. The result of that would be a steep decline in the taxes they already pay, essentially negating the revenue from the severance tax. It is all rather academic, however, as Governor Tom Corbett has pledged not to raise taxes. Just ... as the Marcellus Shale Commission began its work, Lieutenant Governor Jim Cawley stated flatly: "A severance tax is off the table." But possible impact fees are on the table. The danger is that impact fees could become a Trojan horse for implementing a state tax. There is logic behind the state empowering counties and municipalities in the Marcellus Shale region to impose impact fees to mitigate local infrastructure and environmental damage. Such taxing decisions should be made locally, by county commissioners and township supervisors, with the money flowing into their coffers not into the abyss in Harrisburg. Some at the capitol are already preparing to try and grab a share of the treasure. A spokesman for Senate President Pro Tempore Joseph Scarnati is suggesting impact fees include funding for the state's Growing Greener initiative. When an impact fee bill begins its trip through the legislative process look for others to add their favored projects or programs to the proposed law. In an era of cuts, lawmakers will circle this bill like starving buzzards above a carcass. If a bill gets larded up with anything other than a local option impact fee it will certainly invite a gubernatorial veto. Levying an impact fee with any portion of the proceeds going to the state would be a clear violation of the governor's no new taxes pledge. Allowing counties and municipalities to assess fees dedicated solely for restoring infrastructure damage is not. The problem is leadership in the state senate still ascribes to the old school thinking that Pennsylvania has a revenue problem. Tom Corbett, having come to power in the age of the Tea Party, understands that we have a spending problem. That is why he has not singled out one industry for extra taxation, and proposed a budget that spends within our means. Given that the old tax and spend mentality got us into the current fiscal mess, the time has come to try Corbett's different approach. May 2011 > www.mbausa.org > 19
Legal Q&A RALPH S. ALBERTS CO. FINDS NICHE
WHAT IS THE GENETIC IN NATURAL GAS INDUSTRY INFORMATION The Ralph S. AlbertsNONCo., Inc. (RS DISCRIMINATION (GINA)? Alberts), a multifacetedACT custom molder GINA law that prohibits locatedisinaMontoursville, is capitalizing on Pennsylvania’s burgeoning natural health insurers and employers gas industry by adapting decades-old from discriminating onathe basis process to the market’s current needs. of genetic information and sets a national baseline of protections Best known for manufacturing products for amusement RS Alberts across is now from any suchparks, discrimination manufacturing the country. durable plastic well-pad liners used to contain spills at drilling
WHAT CONSIDERED ‘GENETIC sites. TheISwell-pad lining, made from polyurea and polyurethane is INFORMATION’ UNDERfoam, GINA? more durable, flexible and resistant to Genetic information means chemicals than traditional tarp liners. information about an individual’s Because they reused and genetic tests;can thebegenetic teststake of half of the time to put down, the new family members of the individual; liners — which contain no hazardous the manifestation of a disease air pollutants or volatile organic or disorder in are family members compounds — considered far of the individual or any request superior to traditional tarp liners.for or receipt of genetic services; or RS Alberts, with more than 50 years
DEPARTMENTS > Contact: Jessica Crocker
of experience with spray foams and
participation inspecializes clinical research spray polyureas, in injection that includes by molding, foamgenetic molding,services hand casting, the individual or aroto family member liquid resin casting, casting and of the individual. thermal plastic rubber casting. For more information, visit CURRENT DOES GINA PROTECT www.rsalberts.com. EMPLOYEES ONLY? GINA prohibits discrimination PLASTIKOS, MICRO MOLD against applicants and EXPANDboth FACILITIES employees in an allErie-based aspects ofcustom the Plastikos, Inc., injection molder, recently completed employment relationship, including a cooperative expansionand with hiring, firing,facilities compensation, sister company and precision mold any other aspect of employment. manufacturer, Mold, Co.that Inc. The Any action byMicro an employer expansion will improve efficiencies deprives, or tends to deprive, and increase production capabilities for both any employee or applicant of companies, which together are global an employment opportunity or leaders in the plastics industry. otherwise adversely affects that Additionally, Mold,because which willof employee orMicro applicant accommodate production overflow his or her genetic information is from Plastikos as orders increase, will prohibited by GINA. house the majority of the research
and development for both companies,
AN EMPLOYEE OF MINE including tool, engineering and MADE REQUEST TO ATTEND materialsAsampling. THE FUNERAL OF HER For more information, visit GRANDMOTHER WHO PASSED www.plastikoserie.com. AWAY FROM BREAST CANCER. QUAKER STEAK & LUBE NABS AM I IN TROUBLE UNDER NATIONAL BUFFALO WING GINA FOR KNOWING THISTITLE Quaker Steak & Lube’s Buffalo-style INFORMATION? chicken wings who recently earned the FestAn employer inadvertently ival Favorite award at the 2010 National obtains family medical history is Buffalo Wing Festival in Buffalo, protected from liability underNew GINA. York. The 71,000 attendees made The It is meant to protect an employer Lube their overwhelming favorite, outwho is spontaneously offered family selling the 38 restaurants in attendance. medical history or who obtains such Quaker Steak which question. served its as a result of&anLube, innocent first wing in 1976, owns or franchises A throughout LEGAL QUESTION? 39 HAVE locations the United GET CONTACT States andANSWERS! Canada, including the Scott Enterprises franchise at 7851 LEGAL Peach THE ASSOCIATION’S Street inHOTLINE Erie. TODAY AT
814/833-3200 OR 800/815-2660. For more information, visit www.quakersteakandlube.com.
J.H. J.H. BENNETTBENNETT MOVING & STORAGE INC. M J
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January 2011 > www.mbausa.org > 5
DEPARTMENTS > Contact: Tammy Lamary
Take Action Now to Ensure GINA Compliance in Your Workplace On January 10, 2011, the new regulations issued by the EEOC under the Genetic Information Nondiscrimination Act of 2008 (GINA) became effective. Title II of GINA prohibits the use of genetic information by employers, restricts employer requests for genetic information, and strictly limits disclosure of genetic information. The EEOC has already received hundreds of charges alleging violations of GINA; therefore, employers should take action to ensure compliance. Some steps employers must take include posting notices in conspicuous places describing GINA's applicable provisions. In addition to this posting, when an employer requests health-related
information, it must warn the employee that he or she must not provide information that is genetic in nature. This warning affords employers with a “safe harbor” protection. This protection provides that receipt of genetic information in response to a lawful request for medical information will be deemed inadvertent and not in violation of GINA if the request contains such a warning. Whenever a new law is enacted, the enforcing agency and courts will be called upon to interpret and apply provisions so employers know what must be done to ensure compliance. The extensive time involved, in conjunction with GINA being a highly technical law, can make compliance with GINA a challenge.
Flagship Store & Outlet
However, as new interpretations are made and provisions are applied, the Manufacturer & Business Association will keep you up to date. For more information about GINA compliance, please contact the Association’s Legal Services Division at 814/833-3200, 800/815-2660 or email me at tlamary@ mbausa.org.
Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.
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The Woolrich Flagship Store features the latest apparel, accessories and home furnishings inspired by the outdoors.
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May 2011 > www.mbausa.org > 21
Protecting our environment is crucial. So is protecting your interests. At the Quinn Law Firm, our experienced counsel provide representation to individuals, businesses, property owners, and governmental units with regard to programs regulating our environment. Our experienced counsel include attorneys with former careers with governmental agencies charged with administering environmental statutes and have significant experience regarding the numerous environmental issues associated with the recent development of the Marcellus Shale and other alternate shale formations in Pennsylvania. Our practice also represents governmental entities and municipal authorities regarding sewage, brownfields, water, zoning compliance, and project development matters. To learn more about our comprehensive Environmental Law services, contact us today.
Michael A. Braymer
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EDITORIAL > by Angie Angus
Change the Functional or Emotional Appeal of Your Product to Reach New Customers Angie Angus is the manager of Blue Ocean Strategy Programs and Support Services for the MBA Blue Ocean Center – United States, and a certified Blue Ocean Strategy practitioner. The Center teaches companies and organizations of all sizes and types how to implement Blue Ocean Strategy in order to find new markets for their products and services.
This article is part of a continuing series that features excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne.
The Strategy Canvas of QB House High
QB House
The Six Path Framework offers six paths that employers can explore in order to break out of the industry created boundaries in which they compete. Thus far, we’ve explored alternative industries, strategic groups, buyer groups, and complementary products and services. The fifth path explores the functional-emotional orientation of an industry. Some industries will compete primarily on functionality and the price of the product or service. This is a rational approach that relies on the utility of the product to the customer. The other approach is to appeal to the market on an emotional level, or, in a nutshell, how people use their feelings to make purchasing decisions. Industries train their customers to have certain expectations when considering their product. If an industry has always competed either functionally or emotionally, then the buyer becomes accustomed to viewing the product or service in this manner. Functional companies tend to look at how they can offer even more function while keeping prices low, which may shrink the profit margin. Emotionally appealing companies tend to add even more extras, which don’t necessarily offer more utility for the buyer. This tends to raise costs, which will either force the company to raise the price or reduce profits. Challenging the functional-emotional orientation of an industry often creates a blue ocean opportunity. Trimming Expenses in the Hair-Care Industry In Japan, for example, a man’s haircut is often steeped in tradition and relaxation. Once at the barber’s, warm towels are placed on the customer’s face, followed by a neck and back massage, and helping of a complementary tea or coffee. The experience also includes shampooing, special hair treatments, a haircut, blow-dry, and even a shave. The entire process takes at least an hour and ranges in price from $27 to $45. QB (Quick Beauty) House chose to challenge the emotional orientation of the Japanese barber industry. The company recognized that many people, especially working professionals, didn’t want to spend that much time getting a haircut. So, they eliminated the hot towels, massages and special hair treatments. They even cut out shampooing and blowdrying by introducing a new method called an “air wash” system. It is an overhead vacuum that suctions up the hair clippings. QB House was able to reduce the time of getting a haircut from one hour down to 10 minutes. They also were able to significantly reduce costs by eliminating everything that wasn’t important to their customers. This allowed the company to drop the price of a haircut down to only $9. Within the last 15 years, QB House has gone from one barbershop to 459 outlets and the company is still growing.
Average Japanese Barbershop
Low Price
Extra Reservation services (other than desk haircutting)
Range of hair treatments
Hygiene
Time savings on waiting
Time savings Highon haircut performance "air wash" system
Cementing its Place in Home Construction Cemex is a worldwide materials company that produces cement. In Mexico, 85 percent of the cement market is in retail sales; however, only a small portion of the Mexican people historically bought cement themselves. The problem was simple: Although many Mexican people had the land needed to expand their overcrowded homes, they had insufficient savings to buy cement for the expansion. Cemex started a special program called “Patrimonio Hoy.” Various families in a village would contribute money and take turns “winning” the money to use in the building of an additional room to their house. Cemex added to the winnings additional services of delivering the cement to the house, providing construction classes and a technical adviser. The program is now considered a huge success because of how it has helped these families build their dream houses. According to Blue Ocean Strategy, “Whereas Cemex’s competitors sold bags of cement, Cemex was selling a dream, with a business model involving innovative financing and construction know-how. Cemex went a step further, throwing small festivities for the town when a room was finished and thereby reinforcing the happiness it brought to people.” Cemex changed the appeal of its product from functional to emotional and has been experiencing exceptional growth with 20 percent more Mexican families building additional rooms on their houses. Look at your industry to analyze the appeal of your product or service to the market and consider changing the functional-emotional orientation. This path can provide a route to an entirely new market. Next: Path 6 – Look Across Time at External Trends That Affect Your Business. If you are interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa. blueoceanstrategy.com or contact me at aangus@mbausa.org. May 2011 > www.mbausa.org > 23
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A subsidiary of the Manufacturer & Business Association
IT’S TIME TO ACT! ELECTRIC RATE CAPS EXPIRED JANUARY 1, 2011. Discover what hundreds of other members, small and large alike, have found by joining the Employers’ Energy Alliance of Pennsylvania, Inc., a subsidiary of your Manufacturer & Business Association. Get significant cost savings with no long-term contract to sign and your energy provider stays the same. Energy savings made simple.© To request a savings analysis or for additional information, call us today at 814/833-3200 or 800/815-2660, or visit www.eeapa.com.
People Buzz PSYCHIATRISTS JOIN REGION’S LARGEST BEHAVIORAL HEALTH-CARE FACILITY Millcreek Community Hospital, located in Millcreek Township, Pennsylvania has announced the following additions to its behavioral health-care team: Ronald H. Bradley, D.O., Ph.D. has been named director of Psychiatric Services at the hospital, where he directs staff and treats patients in the hospital’s 62-bed Behavioral Health Care Department. He also joined the teaching staff of Lake Erie College of Osteopathic Medicine (LECOM) as a clinical professor of psychiatry. Dr. Bradley most recently served as medical director, Behavioral Health Services, for HealthPlus of Michigan and as a clinical professor at Michigan State University. Max William Gottesman, D.O., has joined the hospital’s Behavioral Health Services Department as a staff psychiatrist and the teaching staff of LECOM as a clinical assistant professor of psychiatry. He previously worked as a psychiatrist for Safe Harbor Behavioral Health, Stairways Behavioral Health and Saint Vincent Health Center. Renee Thomas-Clark, D.O., F.A.C.N. has joined both the hospital as a staff psychiatrist in its Behavioral Health Services Department and LECOM as a clinical assistant professor of psychiatry. Dr. Clark comes to Erie from Michigan where she was the medical director and a staff psychiatrist for the Saginaw County Community Mental Health Authority. BATCHELOR NAMED TO NATIONAL BOARD; SAMBROAK PROMOTED TO FINANCE VP CFInsights, a division of the Boston-based consulting firm Foundation Strategy Group, recently named Erie Community Foundation President Michael L. Batchelor to its Board of Advisors. CFInsights provides benchmarking, dashboards and economic scenario planning services for nearly 150 different community foundations nationwide. In addition, The Council on Foundations, a Washington, D.C.-based membership association of national community, private and corporate foundations, announced that Batchelor was elected as one of 17 members of the Community Foundations Leadership Team in order to provide strategic direction for the community foundation field and enable members to act effectively in their own behalf and on behalf of philanthropy as a whole.
EDITORIAL > Contact: Karen Torres
recently promoted to vice president of Finance. She is responsible for the finance, accounting, treasury management and human resources of the Foundation. Sambroak handles the annual audit and the monthly financial statements and oversees the policies and procedures of the Foundation’s accounting systems. QUINN LAW FIRM WELCOMES NEW ATTORNEY The Quinn Law Firm in Erie recently announced the addition of Attorney Michael A. Braymer. Braymer has experience with numerous environmental issues including those associated with the recent development of the Marcellus Shale formation. Prior to joining the Quinn Law Firm, Braymer spent the last seven years serving as an assistant counsel for the Pennsylvania Department of Environmental Protection. He earned his law degree from the University of Pittsburgh in 2002, and his bachelor's degree from Edinboro University of Pennsylvania in 1999.
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Barbara F. Sambroak, who joined The Erie Community Foundation in 2006 as the chief financial officer, was May 2011 > www.mbausa.org > 25
PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199 UPHP_E-option_Save Green.MBA7.25x10_Layout 1 1/10/11 4:23 PM Page 1
Introducing a health plan option for small business designed to save green. asy to use, conomical and Environmentally friendly.
Enjoy a discount and the ease of 24/7 on-line access for all of your health plan needs. Has there ever been an easier business decision? At UPMC Health Plan, we want to make it that simple. That’s why we’ve introduced the region’s most comprehensive all-electronic option. It’s called and it’s an easy-to-use, paperless option that complements any of our Small Business Advantage health plans. With , all enrollment, billing, claims, and payments are conducted online – providing you and your employees with greater convenience. Your employees also enjoy easy access to all their health information, wellness tools, and health support. And, as always, you and your employees have access to our network of more than 80 hospitals and 7,000 physicians, and the award-winning member service you expect from UPMC Health Plan. In other words you get more for less. To learn more about how you can save, go to upmchealthplan.com.
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