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Please save the date for our fourth annual Manufacturing Day celebration from 8 a.m. to 1 p.m., Wednesday, October 11, at Erie’s Bayfront Convention Center. This year’s event will be spectacular, showcasing more than 80 exhibits, programs and demonstrations, designed for participants to experience innovative manufacturing technology in a hands-on, interactive environment plus educational break-out sessions throughout the morning. More than 2,000 educators, students and community leaders are expected to attend! Visit www.paMFGDAY.com for the latest updates or to view photos from our 2016 event.
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ALONG WITH OUR PARTNERS:
To learn more about sponsorship opportunities, contact Patty Welther at 814/833-3200, 800/815-2660 or pwelther@mbausa.org.
M l io uadit nn E A A h P 8 t e in ad
BUSINESS VOL. XXX NO. 5 | MAY 2017
SPOTLIGHT Q&A:
TAMARACK PACKAGING PUTS ‘SUPER’ IN LOCAL MANUFACTURING
BANKING ON SUCCESS INCREASED CAPITAL LEADS TO AN INCREASED LENDING POWER FOR ONE COMMUNITY BANK
2017 SHOWCASE OF MANUFACTURERS
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MAGAZINE
Our health coaches are with your employees every step of the way. When your employees are healthier, they’re happier and more productive. That’s why we have health coaches like Stephanie who team up with members like Cortne. Cortne was at risk for diabetes, so Stephanie suggested a plan that helped her lose 50 pounds — so far. And Stephanie even calls her regularly and meets her every month for a walk, to keep her on track and motivated. Members who get help from health coaches are #LivingProof.
Visit HealthCoachHighmark.com to learn how your employees can benefit from health coaches, too.
Highmark Blue Cross Blue Shield is an independent licensee of the Blue Cross and Blue Shield Association.
FEATURES FEATURE STORY | WHAT’S INSIDE
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MANUFACTURING PAVES THE WAY FOR OPPORTUNITY Here, in the Keystone State, we recognize the history and the importance of manufacturing – and STEM careers – to our future.
COVER STORY | LOCAL PROFILE
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ERIEBANK
Learn how this community bank is branching out to help manufacturers and business owners grow their operations in five counties across Pennsylvania and northeast Ohio.
SPOTLIGHT Q&A | INDUSTRY
9 DEPARTMENTS
EVENTS & EXTRAS
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BUSINESS BUZZ
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PEOPLE BUZZ
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HR CONNECTION
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LEGAL Q&A
NETWORKING AND MORE
WHAT’S NEW
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SHOWCASE OF MANUFACTURERS | SPECIAL SECTION
See photos of the Association’s recent networking events and briefings.
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AWARDS AND PROMOTIONS READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
WORKPLACE TRENDS
GET ANSWERS
Feature Photography ERIEBANK Tungsten Creative
Contributing Writers James Kinville Dominick Sisinni Tom Tillman
Additional Photography iStockphoto.com Casey Naylon Karen Torres
See this special listing of companies that are proud to have their products “Made in PA.”
EDITORIAL HEALTH MATTERS | SOLUTIONS
11 Executive Editor Karen Torres ktorres@mbausa.org
David Coolidge, Sales and Marketing representative for Tamarack Packaging, Ltd., talks about the rich history of the Meadville-based company and some of the exciting new products that it has brought to market.
Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org
How to respond to support employees with alcohol challenges. James Kinville
LEGAL BRIEF | UPDATE
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
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How Pennsylvania’s entity laws have become more business friendly. Dominick Sisinni
On the Cover: As trusted advisers to the clients they serve, learn how ERIEBANK is leveraging its capital to spur economic growth among regional businesses. See full story, 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
ON THE HILL | PROFILE
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Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org
© Copyright 2017 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.
Guest columnist Tom Tillman of Jersey Shore Steel and a member of the MBA’s Williamsport Policy Committee talks about the importance of going “green” for this Pennsylvania manufacturer. mbabizmag.com • MAY 2017
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131 YEARS OLD, AND IT STILL HAS ALL ITS TEETH. The 430® Tongue and Groove Plier. Behold. It’s a beefy 18 ounces of American high-carbon steel. At a healthy 10
inches long, it’s got the leverage you need to really get around on a stubborn nut. And its right angle, laser heat-treated teeth hold fast in either direction. Is it more plier than you need? Probably. It took 131 years to make a plier this awesome. Family founded, owned and operated since 1886 and manufactured in Meadville, Pennsylvania, Channellock, Inc. is a worldwide leader in the manufacture of high-quality hand tools, that can be found in hardware stores, retailers, toolboxes and workshops around the world.
www.channellock.com
FEATURE STORY | WHAT’S INSIDE
Manufacturing Paves The Way for Opportunity U.S. manufacturing ranks today as the world’s 8th largest economy, and U.S. leadership in high-tech manufacturing continues to offer some of the best opportunities for financial reward and professional challenge. Here, in the Keystone State, we recognize the rich history and the continuing importance of manufacturing – and STEM careers – to our future.
In Pennsylvania, manufacturing accounts for $79 billion in economic impact across Pennsylvania and employs more than 569,000 people. That’s more than 18 percent higher than the statewide average for all industries — and another reason STEM education is so important. According to the National Alliance for Partners in Equity (NAPE), the science and engineering (S&E) workforce has shown sustained growth for more than half a century. The number of workers in S&E occupations grew from about 182,000 in 1950 to 5.4 million in 2009. This represents an average annual growth rate of 5.9 percent, almost five times the 1.2-percent growth rate for the total workforce older than age 18 during this period. Workforce growth in S&E occupations from 2000 to 2009 was slower than in the preceding two decades. Nonetheless, at 1.4 percent growth annually, it exceeded the 0.2-percent growth rate for the general workforce. In addition, many workers outside S&E occupations have STEM training or use related knowledge and skills in their jobs. In fact, 75 percent of the fastest-growing occupations in the
U.S. workforce today require significant mathematics or science skills. Experts say that by 2018, the number of available STEM jobs is expected to grow significantly, specifically in fields that involve computers (growing by 51 percent), engineers and technicians (28 percent), life and physical sciences (13 percent) and architecture (6 percent). Those with these skills should expect to have their pick of great jobs. Indeed, employers have ramped up efforts to show middle- and high-school students how STEM fields relate to real-life situations. Mentoring, sponsored summer courses, educational events and contests soliciting creative scientific approaches to community problems have helped spark interest in STEM, but the new challenge is finding a way for students to hone the other skills they’ll need to be successful in a STEM job.
some of the companies that are impacted by manufacturing and STEM-related fields here in the Keystone State, as well as the businesses, such as ERIEBANK, which are helping them grow their operations. In addition, we’ll talk with Tamarack Packaging about how they’ve reached new heights in their manufacturing operations, We’ll also take a look at many of the manufacturers that are creating jobs, opportunity and wealth right here in our own backyard. The Manufacturer & Business Association is proud to support these member companies and all those that manufacturer and do business in Pennsylvania. Be sure to save the date for more exciting news coming shortly for our 2017 Manufacturing Day on October 11 at the Bayfront Convention Center in Erie!
Here, in our 8th annual Made in PA issue of the Business Magazine, we’ll showcase
Looking to the Future!
mbabizmag.com • MAY 2017
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COVER STORY | LOCAL PROFILE
From left: ERIEBANK President Dave Zimmer, Velocity Network CEO Joel Deuterman and ERIEBANK Vice President of Commercial Lending John Schulze.
BANKING ON SUCCESS Increased Capital Leads to an Increased Lending Power for one Community Bank
With major growth in assets, increased market share and significant expansions into northeast Ohio, ERIEBANK is showing no signs of slowing down. Since its inception in 2005, this locally grown bank is quickly becoming the go-to bank for businesses throughout the region.
Expanding the Footprint
When ERIEBANK President David Zimmer first set up shop, he knew from day one what his main objective had to be — to help people. His goal was to create a banking environment where a team of highly skilled local professionals could work closely with the businesses and people in their region to make their dreams come true. “We’re local people helping local people,” explains Zimmer. “Living and working in this community, you have a good idea of what is going on. We have a lot of local knowledge and we know how something we do affects our communities.” ERIEBANK has used that local knowledge to grow from a one-man operation to creating more than 100 jobs in five counties across two states — getting help along the way from Pennsylvania-based CNB Bank. “Management at CNB
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had the forethought and vision to invest in our community,” says Zimmer. “We used that capital to grow and keep expanding. With each expansion, we continue making significant investments in the communities we serve.” The most recent of those investments is the opening of ERIEBANK’s first full-service branch office in downtown Ashtabula in February 2017. Along with the opening of the Ashtabula office, ERIEBANK also officially completed its merger with Lake National Bank and its two offices located in Mentor, Ohio. According to Zimmer, it was ERIEBANK’s successful community banking model and like-minded philosophy on service that made the merger an attractive deal for Lake National Bank. “Just as we do here in Erie, in Ohio we empower our employees to do their job,” he says. “They are local, they know their communities, and now with ERIEBANK’s capital backing, they have even more lending capacity to continue to help northeast Ohio grow.” By expanding its footprint to include Erie, Crawford and Warren counties in Pennsylvania, and Ashtabula and Lake counties in Ohio, ERIEBANK has grown to more than $800 million in assets in just 11 short years.
“We aren’t looking for the transaction, we are looking for the relationship. It’s a partnership. We are a solution provider.” – Bill DeLuca, ERIEBANK’s senior vice president of commercial lending Quick to Market
As many business owners know, the lending process can be arduous depending on which banking institution they choose. The longer the process, the longer it takes to put their plans in motion — stifling economic growth. But with ERIEBANK, local decision-making means quick to market for its clients. “We are really in control of the lending process here,” says Bill DeLuca, ERIEBANK’s senior vice president of commercial banking. “We have the expertise and the capital necessary to make deals with some of the region’s larger businesses — and we can typically help them quickly.” DeLuca adds it’s not a one-size-fits-all philosophy when it comes to giving loans. “We aren’t looking for the transaction; we are looking for the relationship. It’s a partnership. We are a solution provider.” And it’s that quick-to-market philosophy that many larger businesses are finding so appealing, including Harborcreekbased Port Erie Plastics. The family owned business, which is now one of the biggest plastics companies in the region, is in the midst of a 25,000-square-foot warehouse expansion — with help from ERIEBANK. “Their quick decision-making allows us to be able to react to our customers’ needs immediately,” says John Johnson, president of Port Erie Plastics. “With ERIEBANK, we don’t have to worry where the money will come from. They have always been there for us.” The new warehouse will enable Port Erie Plastics to buy new equipment needed to expand its customer base.
Capital Reinvestment
Good products plus good service — those are two of the key components in the equation for a successful business. The third is good banking. Since 2005, ERIEBANK has used its increased capital to help many companies throughout the region grow, get started and, in some instances, survive when shutting down was imminent. “We have a vested interest in making the community vibrant and keeping those who manufacture goods in our region viable,” explains Zimmer. “I can honestly say there are certain businesses that wouldn’t be in business now without our help. We have taken
“ERIEBANK’s quick decision-making allows us to be able to react to our customer’s needs immediately. We don’t have to worry where the money will come from. They have always been there for us.” – John Johnson, president of Port Erie Plastics
Dave Zimmer and Bill DeLuca from ERIEBANK spend the day with John Johnson and Bill Witkowski at Port Erie Plastics learning about the new technology they helped the company to finance.
a closer look at some of our clients, working extra hard to help them succeed.” At ERIEBANK, taking a closer look often means not just having confidence in the products or services that their clients offer, but having confidence in the clients themselves. “For a bank to make a loan, we are investing in the management of that company,” explains Zimmer. “Industry goes up and down, but good management is truly what drives the business.” Having faith in its clients’ vision and abilities is what led ERIEBANK to make its recent investment in Joel Deuterman and Velocity Network. Earlier this year, the tech company received the final piece of the funding puzzle needed to purchase and renovate the former Rothrock Building in downtown Erie. And while many entities played a role in securing those funds, the company’s expansion plans wouldn’t have been possible without the help of ERIEBANK.
“Having a local bank that can see the big picture, the value and the potential of our vision is crucial.” – Joel Deuterman, CEO of Velocity Network “ERIEBANK came in with a crucial bridge loan we needed to make up the difference of the $7 million loan,” says Deuterman, Velocity Network’s CEO. “We would not have been able to pull this off without all of these entities working together, especially ERIEBANK which was willing to work with us through this very complicated process. Having a local bank that can see the big picture, the value and the potential of our vision is crucial.” And while technology companies aren’t seen as typical manufacturers, Zimmer believes the products manufactured by Velocity Network are changing the landscape of economic growth in our region. “Bringing a fiber optic connection to Erie is an aggressive community project,” admits Zimmer.
mbabizmag.com • MAY 2017
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“It’s very important to know we can make those big decisions and ERIEBANK will back us. They have confidence in us and we have confidence in them.” – Jeff Passilla, vice president of Pasco Tool and Plastics, Inc. “Joel and his team are doing something unconventional. They are a driving force in our local economy and that’s why it’s important for us to use our capital resources to help them grow. We’re excited about their vision and what this project will mean for our region.”
People Dealing with People
“People want to deal with people,” says Steve Cappellino, ERIEBANK’s senior vice president and regional manager. “Everyone that works here is from here. We are here early, we leave late. We meet people at their home or their office. You find ways to make banking convenient for people.” Cappellino, who works primarily with clients throughout Crawford County, says as a banker you feel a sense of responsibility to help put the pieces together to help the community grow. And no one knows that better than Jeff Passilla and his family. Since 1972, Passilla’s family has owned and operated Meadville-based Pasco Tool and Plastics, Inc. “When it came time to transition the business to my brother Tony and me, it was important that production wasn’t affected or slowed down,” says Passilla, Pasco’s vice president. “Thanks to ERIEBANK, the process was seamless, allowing us to continue to grow through the transition.” With approximately 60 employees, the company manufactures goods for a variety of markets including aerospace, medical, automotive and safety. Passilla says
Joel Deuterman, CEO of Velocity Network, shares his plans with ERIEBANK’s Dave Zimmer and John Schulze for bringing a fiber optic connection into homes across the region.
it’s been a privilege for his family to be able to keep their business owned and operated solely in Pennsylvania. And while he credits decades of good business leadership, he also acknowledges the importance of a good banking partner. “ERIEBANK is just as invested as we are in keeping our business local. They have confidence in us, and we have confidence in them. My family put a lot of faith in us, and we’ve put a lot of faith in ERIEBANK.”
It’s About More Than Banking
Passion for its customers, co-workers and the community is what sets ERIEBANK apart from other banks according to Zimmer. “Our internal culture is extremely service oriented, from customer service and community service to service to each other. How we treat each other and how we treat our customers — it’s truly unique.” Each year, ERIEBANK employees from all 11 branch offices work together on opportunities that benefit the communities they serve. From volunteering to fundraising, ERIEBANK provides thousands of volunteer hours and donates thousands of dollars to local nonprofits. “The fact that we are a community bank means we are passionate about our community,” says Cappellino. “Helping our clients succeed is certainly important, but if we can help our community in some way, everyone benefits, and isn’t that better banking?”
As a community bank, ERIEBANK, a division of CNB Bank, has been and will continue to be developed by local people and businesses. This local decision-making increases the level of service provided to the communities we serve throughout northwest Pennsylvania and northeast Ohio — bringing growth to the entire region. ERIEBANK’s Steve Cappellino and Jim Miale visit with their clients at Pasco Tool and Plastics, Inc.
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For more information or a complete list of services and bank locations, visit www.ERIEBANK.bank.
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SPOTLIGHT Q&A | INDUSTRY
Tamarack Packaging Puts ‘Super’ in Local Manufacturing In addition to investing in new and innovative ways to enhance their products and services, Pennsylvania companies also have a long and proud heritage in manufacturing. Here, David Coolidge, Sales and Marketing representative for Tamarack Packaging, Ltd., talks about the rich history of the Meadville-based company and some of the exciting new products that it has brought to market. Founded in 1964, Tamarack is recognized as a manufacturer of quality custom vinyl products from rigid and flexible PVC and other plastics. Tell us how the company got its start. Tamarack got its start in a garage in Meadville by Ruth and Lucky McBride as Crawford Packaging. The vinyl pouch was one of the original products that helped get the company started. Petroleum was added as a substance, which helped make the process of making plastics easier; it became a cost effective substitute for wood, glass and metal during World War I and II. In the 1970s, the business was sold and moved to a 12,000-square-foot building; the name changed to Tamarack Packaging. One of the owners, at that time, lived near Tamarack Lake, hence the name. Although Tamarack is rooted in heatsealing, the growth of its customers spurred Tamarack to expand its manufacturing capabilities. Please share some examples, such as thermoforming. Thermoforming is a manufacturing process where a plastic sheet is heated to a pliable forming temperature, formed to a specific shape in a mold and trimmed to create a usable product. Using CAD/ CAM, a perfect fit is created for an item, right out of the box, ready for retail. For example, Tamarack manufactures
blister packs and clam shell packaging for Channellock tools, including the pliers, wrenches and screwdrivers. What are the primary industries that you serve and where are these customers located? We serve many industries, including automotive, banking, electronics, fishing, hand-tool, hotel, marine, pharmaceutical, and stationary. We are a registered Class 1 medical device manufacturer with the FDA. Our customers span throughout the world, primarily in the United States and Canada. Earlier this year, Tamarack produced 11,000 vinyl ticket holders for Nike’s prime customers attending Super Bowl LI. How did that come to be and what has it meant for your business to have that exposure? One of our customers works with Nike. Our customer requested us to create a ticketholder, based on some parameters. Our team worked with their team to customize a product to meet their needs. We didn’t know our product would be part of the Super Bowl until after we finalized. The excitement mounted when both TV stations from Erie aired us on the 6 o’clock news, and we made the front page of the local newspaper the next morning. We even got a spot on “Made in America” that ran the day of the Super Bowl. So, we were super excited about feeling part of the Big Game and the local
attention it brought us. Our structure and capabilities allow us to customize and work closely with our customers. This gives us an advantage in creating unique products and setting ourselves apart. What are some other well-known companies or events that have utilized Tamarack packaging solutions? • Channellock, REED Manufacturing, SK Handtool, Flexcut and Woodpeckers • Honeywell, a harness and safety products manufacturer • Jersey Bin, a cycle shop • Attwood, a marine manufacturer • Plastek and FishUSA Tamarack is proud to manufacture in the USA. What does it mean to you to say your products are Made in PA? It gives us great pride to know we are making a difference in the American economy, locally and throughout the country. Our forefathers built this great country, and we the people, are the backbone to American pride, with hard work and dedication toward a common cause. You bet we are proud! And we say it loud, ‘Made in the USA! Made in Meadville, PA!’
mbabizmag.com • MAY 2017
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Supporting Employees With Alcohol Challenges
HEALTH MATTERS | SOLUTIONS
What else should employers know? Importantly, it’s not your job as a supervisor to diagnose alcoholism. When that manager approaches the employee, it’s better to focus on how the suspected alcohol problem is manifesting itself through increased absences, frequent tardiness or a dramatic falloff in work quality. Accusing the employee of having an alcohol problem rarely goes over well. It’s better to say you have noticed certain ongoing problems, provide the employee with the number for the EAP, and insist that he or she make contact right away. What is the EAP process once the employee makes contact? Most EAPs offer employees six sessions with a counselor who conducts a comprehensive review and assessment then works with the employee to develop a plan of action. In some cases, the employee needs longer-term care so the counselor may refer the employee to a therapist or other behavioral health professional covered under the employee’s health plan.
James Kinville is senior director of LifeSolutions, an employee assistance program (EAP), which is part of the UPMC WorkPartners suite of services. Alcohol abuse impacts the workplace in significant ways, from absenteeism and lost productivity to missed deadlines, strained relations with coworkers and outright dismissals from work. The key for employers is to have policies in place to support employees with alcohol challenges. Here are some key questions and ways to respond: What can employers do about this problem? In addition to the effect alcohol abuse has on the company bottom line, I believe employers have a moral obligation to help their employees live healthier, happier, more sober lives. The same goes for employees dealing with family, financial, legal or health problems.
What are some ways that employers can help with alcohol issues? The best way to address these issues is through an employee assistance program. An EAP is a benefit offering separate from health insurance that helps employees with personal or work-related problems that impact their job performance. EAPs typically offer short-term counseling, referrals, employer/employee training and education. How can an EAP help an employee with an alcohol problem? It starts with the employer. Most EAPs offer awareness training to managers so they can recognize the signs of a problem and know what to do about it. Once a company has an EAP in place, a manager has expert backup and doesn’t have to figure out the issues by themselves. What about confidentiality? Whether the employee seeks help on his or her own volition or is referred to the EAP by a manager, EAPs are extremely confidential. Once the employee connects with the EAP, the EAP will only divulge to the employer that the employee made contact with the EAP and that there’s a plan in place. No other health or confidential information is shared.
What would you say to an employer that doesn’t have an EAP as part of its benefit package? Partner with one! EAPs tend to be low cost, therefore, even small companies are able to afford them. It’s a high-value service that provides amazing peace of mind knowing an expert is a phone call away. It’s also important for the employer to promote the EAP. By utilizing mailers, lunch & learns, promotional campaigns, and worksite presentations, employees will learn that the service is there to help them and that their organization supports it. Any final thoughts on helping employees with alcohol challenges? You often hear with alcohol or drug addiction that the person with the disease — and these are diseases, not moral weaknesses — has to “hit bottom” before realizing he or she has to take steps to get better. By utilizing EAPs and other support services, we can raise that bottom so the afflicted person doesn’t have to fall as far. With an EAP in place, the employee can take action sooner, before a potential crisis hits. For more information about LifeSolutions, contact James Kinville at 412/454-7359 or kinvilleje@upmc.edu.
mbabizmag.com • MAY 2017
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Pennsylvania Entity Laws Now More Business Friendly
Dominick A. Sisinni is an associate with MacDonald Illig where he is a member of the Firm’s Business Transactions, Real Estate and Banking, and Bankruptcy and Creditors’ Rights Practice Groups. He is a graduate of Gannon University and earned his Juris Doctor from the University of Notre Dame Law School. When we speak about “Made in PA,” we cannot forget to talk about the many businesses that have been — and continue to be — created right here in northwest Pennsylvania. In just the past few months, Pennsylvania’s entity laws (that is, the law governing partnerships, LLPs, LLCs and the like) have been revised to be much more business friendly. This is, of course, welcome news to both existing Pennsylvania business entities and those that will be formed in the future. These changes to Pennsylvania’s entity laws were ushered in with the passage of Act 170 of 2016 (“Act 170”). Among other things, Act 170 has modernized Pennsylvania entity law by replacing the old partnership, limited partnership and limited liability company statutes with the most recent
versions of the Uniform Partnership Act (“UPA”), the Uniform Limited Partnership Act (“ULPA”), and the Uniform Limited Liability Company Act (“ULLCA”). The UPA, the ULPA and the ULLCA are “uniform acts,” meaning that they have been enacted in other states and are the result of collaboration, research and debate among attorney practitioners, law professors and other learned individuals. While lawyers and others who help new businesses start operations have likely already gained some familiarity with Act 170, Act 170 will soon be noticed by existing Pennsylvania business entities. Here are some of the key changes: • Change in Default Rules Governing LLC Voting Rights Under the new law governing LLCs, unless the operating agreement states otherwise, all members (in the case of a membermanaged LLC) or all managers (in the case of a manager-managed LLC) possess equal voting rights in the management and conduct of the LLC irrespective of their capital contributions. This is a change from the previous law governing LLCs, and it is a big change because, practically speaking, business entities tend to tie one’s voting power to the individual’s capital contribution in the company. LLCs can, of course, alter this default voting scheme in the LLC operating agreement.
LEGAL BRIEF | UPDATE
• LLC Operating Agreement Plays Greater Role Highlighting the importance for freedom of contract in one’s business, Act 170 has given greater importance to the LLC operating agreement (the internal LLC governing document). As an example, LLCs now will make the election be “membermanaged” or “manager-managed” in the operating agreement instead of in the publicly filed certificate of organization. • Contractually Altering Fiduciary Duties in LLCs Related to the previous bullet point, in their operating agreements, LLCs can contractually alter the fiduciary duties of its members — an important break from prior entity law in Pennsylvania. Specifically, LLCs can, in certain circumstances, fully eliminate the duty of loyalty and the duty of care that its members owe to the LLC and to each other. While Act 170 will not allow LLCs to eliminate the duty of good faith and fair dealing, it does allow LLCs the ability to alter it. • Partnerships are “Entities” Partnerships are considered a distinct legal entity. The upshot of this: It is easier for partnerships to acquire and sell property. Moreover, the “automatic dissolution” rules that were triggered when a partner withdrew or otherwise left a partnership have been removed. (While partnerships have long been recognized as being an “entity,” Act 170 has brought clarity to this area). • Greater Liability Protection for Members of LLPs While LLPs have always provided its partners with liability protection, until Act 170 that protection was only partial. That is, under old Pennsylvania law, partners in an LLP were only protected from “negligent or wrongful acts or misconduct.” Now, partners in an LLP are protected from other partnership liabilities, debts and obligations. In sum, general partners in an LLP are now entitled to the same legal protections as shareholders in corporations or LLCs. As of April 1, 2017, Act 170 has been fully implemented in Pennsylvania. While these bullet points list some of the changes brought about by Act 170, the list is not exhaustive. If you have any questions on how Act 170 will affect your business, contact your corporate counsel or Dominick Sisinni at 814/870-7764 or dsisinni@mijb.com. mbabizmag.com • MAY 2017
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BUSINESS BUZZ | WHAT’S NEW ERIE STRAYER TO PLAY ROLE IN CRACKER PLANT CONSTRUCTION
Erie Strayer is building a $1.3 million concrete plant that will help build the $6 billion shell petrochemical plant near Pittsburgh, according to news reports. Erie Strayer, located at 1851 Rudolph Avenue in Erie, has built most of the concrete plants in the Erie region, including Baycrete Redi-Mix and Erie Sand & Gravel plants. The company also has built concrete plants for construction at the Denver airport, at Chicago’s O’Hare Airport, for buildings and memorials at the Freedom Towers in New York, for the Hoover Dam bypass bridge and a plant operating on a barge to produce concrete for replacement of the 3.1-mile, eight-lane Tappan Zee Bridge over the Hudson River in New York state. The company also built two concrete plants for construction of the new Apple corporate headquarters near San Jose, California. The Pennsylvania Shell ethylene cracker plant is a proposed chemical plant in Potter Township, Pennsylvania near Pittsburgh that will be owned and operated by Shell Oil Company, the American subsidiary of supermajor oil company Royal Dutch Shell. The plant will be located near the interchange of Interstate 376 and Pennsylvania Route 18, expecting to open in the early 2020s. For more information, visit www.eriestrayer.com.
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MAY 2017 • mbabizmag.com
This image, courtesy of Erie Strayer, shows a plant similar to the one that will be constructed in Midland, Pennsylvania. Once up and running, the plant will provide massive amounts of concrete for Shell’s $6 billion ethane cracker plant. NWIRC ENCOURAGES EMPLOYERS TO UTILIZE STEM MANUFACTURING INTERNSHIP PROGRAM Students are wrapping up their semester before summer break and are in the midst of looking for internship opportunities. The Northwest Industrial Resource Center (NWIRC) has a robust database of high-caliber science, technology, engineering and math (STEM) students who are interested in working on a project within manufacturing. If your company has been putting off a project, process improvement, or other initiative, the NWIRC’s STEM Manufacturing internship program can assist in matching your objectives
with the ideal student’s skill-set and work interests. The program has helped companies accelerate technology development and address process and technology-related issues with significant and quantifiable results, such as increased productivity and decreased costs. The NWIRC also can assess your needs and scope a project for you, to include developing a job description. The program saves companies time in the selection process and also has an option for payroll management to reduce resources required for maintaining the intern as a short-term employee. To learn more, contact Michael Griffith at 814/898-6882..
REED MANUFACTURING ANNOUNCES PROMOTIONS
Erie-based Reed Manufacturing, which has been producing fine tools for worldwide professional trades since its founding in 1896, has announced the following promotions: Mike Pruzinsky has been named sales office manager. With Reed since 2003, he previously served as assistant sales office manager for the past nine years. In addition to the manager role, he will continue as Reed’s account specialist for affiliated distributors. A graduate of Mercyhurst University, he has a background in sales and customer service experience. Marnie Caldwell has been promoted to a new position as marketing director. Caldwell joined Reed in 1994 as international sales associate before moving on to manager - Marketing Services in 1996. A graduate of Allegheny College, she brought marketing and customer service skills to Reed. With 23 years in manufacturing marketing, she oversees Reed’s companywide marketing projects plus the web and social media portals. Along with keeping prior responsibilities, she now serves as a key Reed contact for Ferguson Enterprises, Inc. Caldwell facilitates lines of communication for Reed, its sales force, distributors and tool users. Rob Sterner has been promoted to manager Product Development. Trained in mechanical engineering technology at Penn State-Behrend, Sterner joined Reed in 2008 as a college intern and later was named a product development engineer. Outside experiences broadened his understanding of international tool needs.
Patty Oscar has been named controller. Oscar, who has been with Reed since 2012, previously served as senior accountant. Dave Clutter has been promoted to a new position, director Information Technology. A graduate of the MIS program at Penn State-Behrend, Clutter joined Reed in 2000 as MIS manager. For 18 years, Clutter has spearheaded Reed’s IT projects, including ERP
PEOPLE BUZZ | AWARDS AND PROMOTIONS
implementation, business process analysis and business intelligence.
ERIE COMMUNITY FOUNDATION ANNOUNCES NEW BOARD TRUSTEES
Carrie Applequist has moved into the role of assistant sales office manager. With Reed for nine years and having trained at Erie Business Center, Applequist is a great resource in the Sales Department. She will also continue as Reed’s account specialist for Evergreen Marketing Group, along with some work in Reed’s marketing and accounting departments.
The Erie Community Foundation announced the addition of three new trustees to the board: William M. Hilbert Jr., president and CEO of Reddog Industries, Dionne Wallace Oakley, senior vice president, Human Resources at ERIE Insurance, and David M. Tullio, president and CEO of Custom Engineering Company and Lamjen, Inc. They will each serve three-year terms, renewable to nine years.
FORMER STEELER JOINS HBKS WEALTH ADVISORS TEAM
Ian Wild, who played with the Pittsburgh Steelers in 2015 has returned to the Steel City, signing on with HBKS® Wealth Advisors. Wild, who interned in HBK’s Erie office in winter 2013 and spring 2014 following employment as a financial adviser at Merrill Lynch in 2012, will work initially as an HBKS associate adviser as he continues his professional football career with the Winnipeg Blue Bombers of the Canadian Football League. As an intern in Erie, he assisted with the office’s auditing projects, then worked with the HBK tax team helping prepare individual and business returns. Upon earning an accounting degree from Mercyhurst University in 2012. HBKS is the wealth management business of HBK CPAs and Consultants (HBK).
ONEX ANNOUNCES NEW PRESIDENT, NWIRC BOARD MEMBER The Board of Directors of Onex, Inc. recently announced the promotion of Ashleigh Walters to the position of company president. Onex, Inc. is an industrial furnace service company that serves the heat intensive manufacturers in the surrounding region.
Walters is a degreed chemical engineer from Auburn University and joined Onex in 2003 as a sales engineer in the Charleston, South Carolina office. Over the last 15 years, she has advanced through several increasing levels of responsibility at Onex facilities in Charlotte, North Carolina, as well as Pittsburgh and Erie, Pennsylvania. In her most recent position as Onex general manager, she led the company through a comprehensive restructuring and repositioning process. She was instrumental in helping to develop a strategic plan that led to significant new investments for the future, both for the benefit of Onex employees and their families and for the benefit of its customers and community at large. Walters has also been named to the Board of Directors at the Northwest Industrial Resource Center (NWIRC).
Hilbert started his career in manufacturing in 1981, after graduating from the University of Dayton. In service to his community, he currently serves on several Boards of Directors, including the Manufacturer & Business Association, Junior Achievement of Western Pennsylvania, Camp Notre Dame, Inc., University of Dayton Advisory Council for the School of Arts and Sciences, Sisters of St. Joseph Missions & Ministries Foundation and the Erie Regional Manufacturer Partnership. Wallace Oakley began her professional career with State Farm Insurance as a summer intern auto underwriting. After graduating from Delaware State University earning a dual bachelor’s degree in marketing and business administration, she returned to State Farm and progressed through various positions and disciplines in multiple geographic locations. She earned a master’s degree in Human Resources Development from Towson State University and a Certificate in General Insurance. She is a Toastmaster, CTM, and a published author. Wallace Oakley serves on the Pennsylvania Workforce Development Board and is a director on the Team PA Foundation. Tullio has worked in various management positions within the manufacturing industry for over 30 years and assumed his current position at Custom Engineering in 1997. He earned his B.S. degree in industrial engineering from Northwestern University and his MBA from the Behrend College of Penn State University. He currently serves on the boards of the Pennsylvania Chamber of Business and Industry, Erie Regional Chamber & Growth Partnership and the Northwest Industrial Resource Center. He is a past chairman and board member of the Manufacturer & Business Association. Additionally, the ECF Board has appointed Breanna Watts as administrative assistant. She is responsible for helping with scheduling and organizational matters. She is also primary staff support and liaison to The Erie Women’s Fund. Prior to joining the Foundation, Watts was employed as a caseworker for Big Brothers Big Sisters of Family Services of NW PA. mbabizmag.com • MAY 2017
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MAY 2017 • mbabizmag.com
Third graders from Wayne School.
Thanks to generous donations by UPMC Health Plan and PNC Bank, Career Street recently supplied every third grade student in Erie County with a coloring book and crayons. The coloring book, depicting local careers, was designed by Mercyhurst University art department graphic design seniors. The project was developed by Career Street as tool to introduce the many career opportunities available in the Erie area. Help us pave the way for a skilled and engaged workforce. www.CareerStreetErie.org 814.464.8614 jpontzer@CareerStreetErie.org
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Materials Handling Enterprises (MHE), headquartered in Erie, PA, has been a leader in innovation and design of material handling equipment since 1971. MHE is committed to providing quality material handling and ergonomic equipment solutions for a wide variety of industrial applications. From pallet racks and conveyors to cranes, lifting equipment, and much more, MHE has a safe and reliable solution.
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804 Shenley Drive • Erie, PA 16505 P 814.454.6396 • F 814.455.9774 • www.mhe-usa.com quotes@mhe-usa.com • Call or email to discuss your application.
mbabizmag.com • MAY 2017
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Rogers Brothers Corporation • Albion, PA Proudly Made in Pa for More than 100 years!
The ROGERS® Difference: • Over 100 years of trailer experience • Superior craftsmanship and rugged dependability • Highest quality components and raw materials • Industry leading resale value • Seven Year Limited Structural Warranty
ROGERS has been a leader in the heavy-duty trailer industry for more than 100 years. ROGERS’ longevity is a result of our commitment to the superior quality, reliability and durability into every trailer we design and manufacture.
www.rogerstrailers.com • (800) 441-9880
Connect with Rogers on Social Media:
Jacob A. Weaver Company Pallet & Cut Stock Manufacturer and Distributor
7033 State Highway 173 Cochranton, PA 16314 Phone 814.425.2500 • Fax 814.425.1111
GREEN SAWDUST DELIVERED 40 & 199 Yard Walking Floor Loads Available Call David at 814-425-2500 Ext. 221 Farm Friendly
JACOB A.
WEAVER COMPANY
BUYING HARDWOOD LOGS & POLES Call John at 814-795-1326
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MAY 2017 • mbabizmag.com
Ridg-U-Rak Inc. for
75
years! History
“For myself, my family and our employees, manufacturing is a way of life; it creates familysustaining jobs, wealth and unlimited opportunities for our community to grow and prosper.” — John B. Pellegrino, Sr., President & CEO
At the end of WWII, there was a growing need to modernize and expand the nation’s warehousing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to fill those needs. Company after company was springing up, headed by owners who carved out a market share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding companies, investment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist. Ridg-U-Rak was a minor player in those early years. Although limited in marketing vision and hampered by a lack of manufacturing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the operation celebrates 75 years of serving the storage rack market, Ridg-URak is commonly acknowledged as a company built on Integrity and Service, guided by the able leadership of its president and CEO, John B. Pellegrino.
Capabilities
Ridg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with a production capacity of more than 140,000,000 pounds of finished steel products per year. Ridg-U-Rak continues to reinvest profits into equipment and facility improvements, which contributes to it remaining one of the largest storage rack manufacturers in North America and is still a family owned business. One of the key contributors to the company’s success has been the increased talent base of its staff, with the ability to completely manage large projects from design and code compliance, through manufacturing, to final installation and customer approval. Major capital investments in its manufacturing plants have been instrumental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality, but also the company’s environmental imprint by reducing its liquid paint usage. From recycling programs to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustainability expectations.
Products
Ridg-U-Rak provides an unlimited array of storage options. Whether deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can layout storage arrangements to meet a customer’s unique load, throughput and capacity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, 120 South Lake Street and offers replacement parts that interchange with competitive racks. North East, PA 16428 Many specialty storage options are Phone: 814/725-8751 or 866/479-7225 available, including a rack-supported Website: www.ridgurak.com crane system to store large dies and tools.
AMERICAN TINNING & GALVANIZING
552 West 12th Street PO Box 1599 Erie, PA 16512 Phone: 814/456-7053 Website: www.galvanizeit.com A NADCAP certified Metal Finishing company, ATG has specialized in putting the “PRO” in Corrosion PROtection for over 85 years. Anodizing, Electroplating or Galvanizing: ATG’s got you covered!!
ERIE PRESS SYSTEMS
1253 West 12th Street, PO Box 4061 Erie, PA 16512 Phone: 814/455-3941 Website: www.eriepress.com Manufactures custom hydraulic and mechanical presses for forging, extrusion, stretch forming, compaction and metal forming.
GENE DAVIS SALES AND SERVICE
Steel Supply & Fabrication
1119 Payne Avenue Erie, PA 16503 Phone: 814/454-0131 Website: www.GeneDavisSales.com Provides steel supply plus fabrication, welding and repairs of all types, as well as new and used material handling equipment.
GREAT LAKES CASE & CABINET
4193 Route 6N Edinboro, PA 16412 Phone: 814/734-7303 Website: www.werackyourworld.com Manufacturer of UL Listed enclosures for industrial control panels and IT equipment; available in multiple NEMA ratings for harsh indoor and outdoor environments.
INDUSTRIAL SALES & MANUFACTURING
2609 West 12th Street Erie, PA 16505 Phone: 814/833-9876 Website: www.ismerie.com Quality contract machining, fabrication and assembly for OEMS since 1967.
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LORD CORPORATION
2455 Robison Road West Erie, PA 16509 Phone: 814/868-3180 Website: www.lord.com LORD Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance. For more than 90 years, LORD has worked in collaboration with our customers to provide innovative aerospace, defense, automotive and industrial solutions.
MATRIC GROUP
2099 Hill City Road Seneca, PA 16346 Phone: 814/677-0716 Website: www.matric.com Provides electronic contract manufacturing services, contract design, cable and electromechanical assemblies.
MICRO MOLD CO., INC.
4820 Pittsburgh Avenue Erie, PA 16509 Phone: 814/838-3404 Website: www.plastikoserie.com Provides custom mold design & fabrication services along with plastics engineering support services to the medical device and electronics industries.
PHB INCORPORATED:
7900 West Ridge Road Fairview, PA 16415 Phone: 814/474-5511 Website: www.phbcorp.com Manufacturing capabilities include zinc die casting, aluminum die casting, machining, plastic and rubber molding, tool & die, injection molding, and product assembly.
Pennsylvania’s manufacturing industry comprises more than 14,500 establishments and more than 560,000 employees that represent both traditional and additive manufacturing. Along with national and international companies, small and medium size businesses have a significant presence here, and help continue the state’s manufacturing heritage. Here are just a few of those companies that are proud to manufacture in the Keystone State:
SMITH PROVISION COMPANY, INC.
THE PLASTEK GROUP
1300 Cranberry Street Erie, PA 16501 Phone: 814/459-4974 Website: www.smithhotdogs.com Manufacturer of premium quality wieners, sausages, deli meats, bacon and awardwinning hams.
2425 West 23rd Street Erie, PA 16506 Phone: 814/878-4400 Website: www.plastekgroup.com The Plastek Group employees more than 1,600 employees worldwide in four different countries. The company Plastek is a lead global manufacturer in injection molding products, and tool design and tool building.
SUBURBAN TOOL & DIE COMPANY, INC.
4940 Pacific Avenue Erie, PA 16506 Phone: 814/833-4882 Website: www.suburbantool.com Specializes in providing quality, timely engineered solutions to customers’ complex mold building needs. Serving the thermoplastic, thermoset, MIM and die casting industries.
PLASTIKOS, INC.
8165 Hawthorne Drive Erie, PA 16509 Phone: 814/868-1656 Website: www.plastikoserie.com Provides custom mold design and fabrication services along with plastics engineering support services to the medical device and electronics industries.
REDDOG INDUSTRIES, INC.
TECHNIPFMC
2012 East 33rd Street Erie, PA 16510 Phone: 814/898-4321 Website: www.reddog-erie.com Manufacturing capabilities include high-pressure plastic injection molds; aluminum die-cast dies; and specialized machining.
1602 Wagner Avenue Erie, PA 16510 Phone: 814/898-5000 Website: www.TechnipFMC.com A global leader in subsea, onshore/offshore and surface projects. For over 90 years, TechnipFMC’s measurement experts have provided products, systems, services and solutions in the oil and gas industry; particularly well-known for their Smith Meter® brand.
RIDG-U-RAK, INC.
120 South Lake Street North East, PA 16428 Phone: 814/725-8751 Website: www.ridgurak.com Designs and manufactures a full array of storage rack solutions.
TONNARD MFG. CORP.
715 Spring Street Corry, PA 16407 Phone: 814/664-7794 Website: www.tonnard.com Specializes in short- and long-run metal stamping, laser cutting and fabrication. The company is ISO 9001 and AS 9100 registered.
SEAWAY MANUFACTURING
2250 East 33rd Street Erie, PA 16510 Phone: 814/898-2255 Website: www.SeawayMfg.com Seaway, deeply invested in the Erie community since 1959, is an active industry leader in the manufacture of vinyl replacement windows and patio rooms.
WHIRLEY-DRINKWORKS!
618 Fourth Avenue Warren, PA 16465 Phone: 814/723-7600 Website: www.whirleydrinkworks.com Manufactures high-quality plastic reusable food and drink ware. Whirley-DrinkWorks! injection and blow molded products can be found in many convenience stores, amusement parks, zoos and restaurants.
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Here’s just a sampling of what you will learn with practical takeaways for growing people and revenue. Recalibrate Your Revenue Engine New perspectives, strategies, and actions for increasing sales and profits. The Art and Science of Knowledge Transfer Learn about preserving and transferring years of employee ‘know-how’. Diversifying into New Markets Best practices and challenges of finding new markets and customers. Creating an Inbound Lead Generation Strategy Process and tactics to attract new customers thru predictable lead generation. Beyond Orientation Discover onboarding best practices that lead to retention and successful employees. Trump Change Gain insights about the potential impact of the new administration’s policies on your employees.
May 18, 2017 7:30am-4:00pm Ambassador Conference Center 7792 Peach Street Erie $75.00 Networking Breakfast Lunch
More details and registration at www.nwirc.org/events • (814) 898-6888
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MAY 2017 • mbabizmag.com
To our clients, employees, and suppliers: We are proud to provide products, systems, services and solutions to the oil and gas industry for over 90 years. Our Smith Meter® brand is recognized all over the world. As leaders in the flow measurement industry, we have the world’s leading Flow Research and Test Center, capable of testing meters over the widest dynamic measurement range, right here in Erie. Without you, none of this would be possible.
Thank you. P 814 898 5000 measurement.solutions@fmcti.com TechnipFMC.com
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US – UK – Brazil – Mexico Family Owned since 1956 by the Prischak Family, Plastek is a Global Plastics Manufacturer with locations in Erie, PA – Hamlet, NC – Mansfield, United Kingdom – Indaiatuba Brazil – Queretaro, Mexico. Employing more than 1,700 people worldwide, Plastek manufactures a wide variety of Cosmetics, Laundry Care, Home Care, Personal Care, Food & Beverage and Pharmaceutical Products around the world.
(Front Row): Dennis Prischak – President/CEO, Joseph Prischak - Chairman, Douglas Prischak – VP of Global Tooling & Engineering (Back Row): Daniel Prischak – VP of Manufacturing, Donald Prischak - Sales
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MAY 2017 • mbabizmag.com
ON THE HILL | PROFILE
Going ‘Green’ is Good For Business at Jersey Shore Steel The Manufacturer & Business Association’s (MBA) Government Affairs Department monitors what’s happening in Washington, D.C. and Harrisburg, alerts members to pending legislation and provides a powerful, unified voice for business. The Department represents members’ interests, informs them of critical business issues, maintains constant contact with legislators, and continuously lobbies on their behalf on issues that affect their business at the local, state and federal levels. Across the state, the Department has several policy committees. MBA members come together in these different areas to help shape policy and identify legislative issues important to business. Here, guest columnist Tom Tillman, vice president of Sales at Jersey Shore Steel Company and a member of the MBA’s Williamsport Policy Committee, shares his thoughts on manufacturing in PA. Jersey Shore Steel Company (JSS) has been in continuous operation since its founding in 1938. The re-rolling steel mill in Jersey Shore, Pennsylvania, and fabrication operations in Montoursville employ more than 200 people in north central Pennsylvania. The rolling mill utilizes used railroad T rails as its feed stock producing high-carbon, highstrength “rail” steel angles and shapes used in a variety of niche markets with a concentration in furniture, bedding support, agriculture, highway and other markets. You can find Jersey Shore SteelTM in furniture made by Ashley, La-Z-Boy, Lane, Best Home Furnishings, Jackson furniture / Catnapper and many other leading brands. Jersey Shore Steel’s state-of-the-art rolling mill is a computer-controlled rolling process that assures both product quality and production efficiency. JSS operates in a sustainable manufacturing environment. The company produces an exceptionally strong product from 100-percent postconsumer recycled material. JSS steel products have the highest-recycled content and lowest embodied energy of any steel on the market. According to Pennsylvania State University, Jersey Shore Steel’s rolling mill is the first steel mill in the world to have documented a negative carbon
footprint. The finished product is credited as being the “world’s greenest steel.” The company’s sustainability initiatives have earned the 2013 Governor’s Award for Environmental Excellence (GAEE). In addition, the company has been recognized as a finalist for technology innovation and industry leadership among its peers in 2013- 2015 at the Platt’s Global Metals Awards. Platt’s, a McGraw-Hill company, is a publisher covering the energy, metals and petrochemical world markets. It is our belief that going “green” is good business, as well as good corporate citizenship. Over the past decade, JSS has made extensive operating improvements to implement sustainable manufacturing that have actually helped the company cut costs and remain competitive. Initiatives have included the utilization of landfill gas (LFG) as an alternative fuel, variable speed drive motors throughout the mill, energy efficient lighting, eco-safe hydraulic fluids, shift scheduling to offpeak hours and ultrasonic testing for air leaks. Further, the computer-controlled furnace recovers heat from flue gas exhaust to pre-heat combustion air while reducing cost and improving fuel efficiency. Simply stated, sustainability is a core value at JSS. Our customers
have the common denominator of being committed to sustainable practices that offer responsible products to consumers. Using Jersey Shore Steel helps them achieve those goals. Today, Jersey Shore Steel is owned and operated by Jack and Peter Schultz, the third generation of Schultz’s to run the family business. It has come a long way since the first year of production 79 years ago. Our future success will continue to be a result of generations of hands-on ownership coupled with advances in technology and a dedicated work-force to meet changing and challenging requirements. In today’s global markets, competitive pricing, superior quality, unsurpassed customer service are expected. We are continually challenged to improve our products, our processes and add value for our customers. Helping our customers maintain their competitive posture is key to any success we have had. We try to better understand their needs and market challenges and respond as a partner and not just a supplier. JSS remains committed to manufacturing in Pennsylvania, and we look forward to carrying on our proud tradition of providing quality steel products manufactured together with familysustaining jobs right here in PA.
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Fast Decisions
Local Knowledge
Brian Schibler, local Tim Hortons Franchisee, found an opportunity to triple the size of his business but it was quickly slipping away. “I was told financing would not be a problem. But I could not get the decision fast enough from my former bank. The people at Marquette responded very quickly and my opportunity was not missed.”
Jim McBrier, Chief Executive Officer of McBrier Properties, appreciates working with people who understand the local landscape. “Working only with local people is a plus. Marquette knows our company firsthand, which made it easier to obtain favorable terms. Plus, we were able to keep the money local; we didn’t have to go outside the market to get what we needed.”
Approvals in days, not weeks. Support you can expect when the unexpected happens. People who understand opportunities are fleeting, and make yours a priority. That’s Mpowered™ Business Banking at Marquette.
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Lester Bates, Owner of Whitehead Tool & Design in Crawford County, values working with people he can trust to get the job done. “I do not make a move without first consulting my business banker at Marquette. I trust them. I absolutely would not be here without them. I like being face to face with people who are accountable for what they say they will do.”
John H. Laver IV, Vice President of Mayer Brothers Construction Company, was a customer of a larger corporate bank. When loan decisions transferred to an out-of-town centralized office, he experienced costly delays. “Marquette is local and they turn around fast like us. They empower their staff to make fast decisions and that empowers us to grow.”
Healthcare • Education • Institutional • Retail • Hospitality • Industrial • Concrete
The Austin Difference
Contractors & Construction Managers Since 1906 814.454.7147 www.eeaustin.com
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MAY 2017 • mbabizmag.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.
HR CONNECTION | WORKPLACE TRENDS STEM GRADUATES EXPECTED TO BE TOP PAID IN CLASS OF 2017 When it comes to the top projected starting salaries for Class of 2017 graduates, the STEM disciplines still rule, according to a recent report from the National Association of Colleges and Employers (NACE). Employers responding to NACE’s Winter 2017 Salary Survey project that average starting salaries for engineering, computer science, and math and sciences graduates will be the highest among Class of 2017 graduates earning bachelor’s degrees. Although these technical majors are on top, employers anticipate boosting the starting salaries from last year across all categories of majors in this report, with average increases ranging from 2 percent to 15 percent.
Is Lean Right for Your Company? Lean in business is a philosophy for operations and processes that focuses on reducing nonvalue added activities to gain speed. It includes a collection of “best practice” derived tools and techniques that expose, diagnose and optimize human resources, assets and productivity, while improving the quality level of products and services to customers. Today’s Lean has evolved from the Toyota Production System, originally called “just in time,” where main objectives were to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). While businesses, markets, products and services vary greatly, Lean recognizes eight types of waste that are common to most: 1. Extra motion 2. Overproduction 3. Unnecessary work content 4. Waiting 5. Inventory 6. Rework 7. Product travel 8. Underutilized people
The projected average starting salary for engineering majors overall is $66,097, almost 2 percent more than that for Class of 2016 engineering graduates. The catalyst for this nudge is that the projected average salaries for all of the individual engineering majors exceed $60,000.
These eight wastes are not glaring. They can be small and hide as minor annoyances, but day in and day out, their negative impact accumulates. What is great about Lean tools and techniques is that the tools that help you to expose and diagnose problems also help facilitate the solutions and then serve as highly visual aids for communicating the issues and their resolution to others.
Graduates earning computer science and math and sciences degrees are expected to see greater gains than their engineering classmates. The salary projection for graduates earning computer science degrees is $65,540, which is up almost 7 percent from last year. Likewise, at $59,368, the average salary projection for math and science degrees has jumped 7.8 percent from last year.
While Lean’s origins were in manufacturing, Lean today is embraced by health care, banking, Insurance and numerous other service-based companies. Anywhere there are processes, Lean philosophies, tools and techniques can help them to run faster and more efficient.
STUDY: AFTER-SCHOOL PROGRAMS KEY TO GETTING KIDS STEM READY A recent study by the Charles Stewart Mott Foundation and STEM Next, “Afterschool & STEM: System Building Evaluation 2016,” examined more than 160 after-school programs providing informal STEM education in 11 states. Nearly 1,600 students in grades 4 through 12 took part in the programs.
Don’t confuse faster with reduced quality. Lean processes focus on reducing wasted effort in non-value added activities so more effort can be put into “value added” activities that drive better quality for customers.
“After-school works and can be part of the solution for really helping to have more educational opportunities available for kids, particularly for low income kids and for kids who are in underserved populations,” said Gywnn Hughes, senior program officer at Charles Stewart Mott Foundation, in a U.S. News & World Report article.
Toyota has been working at Lean since the early 1900s and they are still making improvements. How are your processes? Could your company benefit from Lean?
According to the study, which was formally released in April, more than 70 percent of students in all participating states showed positive gains in STEM subjects, careers, knowledge and 21stcentury skills by participating in STEM-focused programs after school. The study also found that 80 percent of students reported a positive gain in their science career knowledge, 78 percent said their interest in science had increased, 72 percent reported an increase in their perseverance and critical thinking skills, and 73 percent reported an increase in “STEM identity” – a personal belief that he or she can do well and succeed at science.
Ray Davis is a training instructor for the Manufacturer & Business Association, teaching courses such as Lean and Six Sigma. For more information, visit www.mbausa.org.
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Making a difference. For us, this isn’t a job. It’s our chance to bring dreams to life. There’s an energy that defines Northwest. A spirit that says yes-we-can. And a passion that’s evident in everything we do. You’ll see it when we greet you and hear it when we come up with great solutions – so we can make a difference for you, every single day.
1-877-672-5678 | northwest.com
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Made in PA is making a difference. Erie’s own American Tinning & Galvanizing Company, a Northwest customer, has been the leader in corrosion control of metal since 1931. Pictured above is Robin Scheppner, President and Managing Owner.
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Plan
LEGAL Q&A | GET ANSWERS WHEN A COMPANY HIRES A NEW EMPLOYEE, MUST THE NEW HIRE BE PROVIDED WITH AN OFFER LETTER? Although not required in the United States, providing a candidate a written job offer is considered a good practice. Following up a verbal offer with a written offer will not only set expectations for the new employee, but also clarify any matters that were discussed during the interview phase. For example, an offer letter can provide details about the start date, any contingencies, such as passing a drug test or background check, the job title, and basic salary and benefits information. A written offer can also be an important piece of documentation in the event the new hire wants to negotiate salary or benefits. A candidate’s signature on the final offer confirms he or she has accepted the position and its terms.
Executive Order Reinforces Regulatory Reform Agenda On February 24, President Trump signed an executive order (EO) that builds on an earlier order directing federal agencies to reduce regulations and control regulatory costs. The new EO reiterates the White House policy of lessening “unnecessary regulatory burdens placed on the American people.” President Trump indicated “[t]his executive order is one of many ways we’re going to get real results when it comes to removing job-killing regulations and unleashing economic opportunity.” The EO calls for the head of each federal agency to designate an agency official to act as a “Regulatory Reform Officer” (RRO) by April 25. The RRO will ensure the agencies carry out the new administration’s regulatory reforms, including an earlier presidential order instructing agencies to identify two regulations to eliminate for every new one they create. The EO also directs federal agencies to establish a Regulatory Reform Task Force. The task force will evaluate existing regulations and make recommendations to the agency regarding their repeal, replacement or modification.
CAN BACKGROUND CHECKS BE CONDUCTED ON INDEPENDENT CONTRACTORS AND OTHER CONTINGENT WORKERS?
At a minimum, each task force will attempt to identify regulations that:
In general, employers may conduct background checks on all individuals performing work on their worksites. This includes their employees and all contingent staff, such as staffing agencies’ temporary employees, internally hired temporary employees, consultants, independent contractors and subcontractors. Many employers conduct background checks on all workers in an effort to reduce potential risks and liabilities related to staffing practices, and some employers are required by federal, state and local laws to conduct background checks as well.
• Eliminate jobs or inhibit job creation; • Are outdated, unnecessary or ineffective; • Impose costs that exceed benefits; • Create a serious inconsistency or otherwise interfere with regulatory reform initiatives and policies; • Rely in whole or in part on data, information or methods that are not publicly available or that are insufficiently transparent to meet the standard for reproducibility; or
IF AN EXEMPT EMPLOYEE REQUESTS A MOVE FROM FULL-TIME TO PART-TIME STATUS, CAN THE EMPLOYER ADJUST THE INDIVIDUAL’S SALARY DOWN TO COMPENSATE FOR THE REDUCED HOURS?
• Derive from or implement executive orders of other presidential directives from previous administrations.
Yes, the salary can be reduced if the position still meets all the conditions for the particular exemption, including being paid a minimum weekly salary of $455. It is important to remember that this is a onetime reduction in weekly salary that is made upon the conversion to part-time status. The part-time exempt employee must still receive their full weekly salary, which is not subject to reductions because of the quantity or quality of the work.
The EO instructs each federal agency to measure and report progress on achieving these directives. Each task force must present a report to the agency head by May 25 providing an update specifically identifying those regulations that should be repealed, replaced or modified.
In other words, the part-time exempt employee’s pay may not fluctuate from week to week. The FLSA allows reductions in employees’ salaries as long as the reductions are not designed to circumvent the salary basis requirement. When an employee is paid less than the minimum salary requirement, his or her position does not meet the FLSA exemption requirements. In such a case, the employee could be paid on an hourly basis.
Tammy Lamary-Toman, JD, PHR, SHRM-CP, is the vice president and legal counsel for the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or tlamary@mbausa.org.
mbabizmag.com • MAY 2017
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ESSENTIAL TOOLS Attorneys at Knox McLaughlin Gornall & Sennett, P.C. understand the unique challenges faced by manufacturers. From small proprietorships to large corporations and from sintered metals to pet nutrition, we have worked with all types of businesses and in many industries. We can provide the legal tools essential to your success. Rely on Knox Law to find innovative solutions to your problems and add value to your business.
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EVENTS & EXTRAS | NETWORKING & MORE
The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events, see the Association’s website, www.mbausa.org.
s his focus and outlook for the Congressman Mike Kelly share dable Care Act, tax reform, trade coming year, including the Affor nt, during the Association’s onme envir atory regul the and issues legislative luncheon in March.
Congressman Glenn Thompson (R-5th District) addresses MBA members during a legislative luncheon in February at the Association’s Conference Cente r in Erie.
David Birks, director of Market Strategy for Expedient, presents on cyber security and the ways that companies can identify and prevent potential attacks, during the Eggs ‘n’ Issues briefing at the Association’s Conference Center with Cathy Szymanski.
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Eggs ‘n’ Issues presenter Cathy Szymanski, director of WOW for Szymanski Consulting, talks about the types of cyber attacks most often encountered and the steps employers can take to minimize exposure, secure sensitive data and protect their operations.
Carl Carlotti, president of Natio nal Fuel Gas Distribution Corporation, prese nts on “Energy: The Increasing Importance of Natural Gas,” at a recent MBA breakfast briefing.
5TH ANNUAL
HUMAN RESOURCE & EMPLOYMENT LAW CONFERENCE
Join us for the MBA’s fifth annual Human Resource & Employment Law Conference! Hear from these highly acclaimed speakers:
• Katee Van Horn, VP of Engagement & Inclusion at GoDaddy and Coach and Leader of Bar the Door, LLC
Presentation: Emotional Intelligence: Not just an HR Buzz Word! What is emotional intelligence? How do I build this skill as a leader and as a human resource practitioner? • Tracy Daggett, Professional Development Trainer, Manufacturer & Business Association Presentation: Coaching for Success • Julia Herzig and Robert Zaruta, Attorneys at Knox Law Presentation: Employment Law Updates • Phyllis Shurn-Hannah, Northeast Region Field Services Director, Society for Human Resource Management (SHRM) Presentation: The Future of HR: Promoting Business Success through a Global Workplace
Attendees will receive 5.65 credits.
Knowledge is power and this one-day conference delivers! Gather with your fellow human resource professionals from a wide variety of industries and businesses for this full day of interactive sessions, thought-provoking information and numerous networking opportunities (breakfast and lunch included). For more information or to register, call 814/833-3200 or 800/815-2660 or visit www.mbausa.org.
mbabizmag.com • MAY 2017
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