2010 ANNUAL REPORT ADVERTISE IN THE BIGGEST ISSUE OF THE YEAR! The Manufacturer & Business Association’s Annual Report is our biggest, most widely read publication! Read by more than 15,000 business owners and executives located throughout northwest and central Pennsylvania, Ohio and New York, the Business Magazine remains the most in-demand business-to-business publication in the region. Plus, your story will be part of our new digital edition that links directly to your company’s Web site! Targeted Readership: Read by more than 15,000 key decision-makers! Broad Distribution: • Distributed throughout 27 counties of northwest and central Pennsylvania, eastern Ohio and western New York. • Provided to all 1,500 Annual Event guests. • Provided to new member companies until May 2011. • Displayed yearlong at the Association’s Conference Center. • Digital version that links directly to your company’s Web site. Limited Space: Hurry....reserve your ad page today!
ADVERTISING OPTIONS
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1
OPTION 1: TWO-PAGE PROFILE $2,600
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OPTION 2: ONE-PAGE PROFILE $1,800 OPTION 3: FULL-PAGE AD $1,800
Ad Space Deadline: WEDNESDAY, April 21, 2010 Ad Files Deadline: FRIDAY, April 30, 2010 Advertising Contact: Lori Maus Joint • ljoint@mbausa.org • 814/833-3200 • 800/815-2660
BUSINESS M A G A Z I N E Manufacturer & Business Association
VOLUME XXIII, NUMBER 4
APRIL 2010
Bayfront Convention Center
pg.12
Lake Erie’s premier meeting destination thrives thanks to ‘local champions’
Blue Ocean Strategy Center Blue Ocean Strategy Center
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April 2010
Blue Ocean Strategy Center
EDITORIAL > 7 / Health Matters
3 / Spotlight
9 / Legal Brief
Norm Zymm, director of Sales and Operations for the Manufacturer & Business Association, talks about the Conference Center’s unique amenities and service, as well as current trends in the hospitality industry.
MATTHEW W. MCCULLOUGH
12 / Bayfront Convention Center
Sustainable lifestyle changes that can benefit your overall health. TIM CLINE
How the current economic downturn is creating incentives for minority shareholder oppression.
ROBERT B. MCMUNIGLE
Event organizers explain the importance of “local champions” in the growth and vitality of the Bayfront Convention Center as a premier meeting destination in the Great Lakes region.
23 / Tech News
18 / On the Hill
11 / Financial Adviser
Some factors worth considering in preparation for a manufacturing business valuation.
How changes in telecommunications technology are leading to improved mobility, customer service and cost savings. JEFF LYTLE
27 / Blue Ocean Strategy
3
FEATURES >
4
Stay informed! Our special two-page Voter Guide provides you the most detailed candidate information for the 2010 3rd Congressional District Primary on Tuesday, May 18.
Value innovation: The cornerstone of Blue Ocean Strategy. ANGIE ANGUS
GOLF SHOWCASE >
24 / Discover some of the premier places to shop, network and golf in the tri-state region, in our second annual Golf Showcase!
DEPARTMENTS > 4 / Business Buzz 16 / HR Connection
18 / On the Hill 20 / Legal Q&A 28 / People Buzz
Linda Breakiron Lombardo of Breakiron Jewelers stops along the trail at Wesley Woods Christian Education Center in Grand Valley, Pennsylvania, to enjoy a recent edition of the Business Magazine. Do you want to be a Business Magazine star? Take a copy with you and take a picture, and e-mail it to Lori Joint at ljoint@mbausa.org.
22
April 2010 > www.mbausa.org > 1
Blue Ocean Strategy Center
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SPOTLIGHT > by Karen Torres Norm Zymm is the director of Sales and Operations for the Manufacturer & Business Association’s Conference Center, which hosts more than 20,000 visitors each year at its stateof-the-art meeting facility located at 2171 West 38th Street in Erie, Pennsylvania. Zymm sat down with the Business Magazine to talk about the Conference Center’s unique amenities and services, as well as the current trends in the hospitality industry. Specifically designed for business meetings and events, the Conference Center is largely unique when compared to its peers in the hospitality industry. Please explain. Our center is comfortable and sophisticated but not pretentious. Attention to every detail ensures that our guests can focus on their attendees’ needs instead of worrying about setup. Superior customer service is also paramount. Every guest will know our name when they leave. The facility has undergone a dramatic transformation in the past few years to enhance customers’ overall meeting experience. What can you tell our readers about these renovations and additions? The renovations were based on the needs of our guests. Our Cyber Café is a relaxing lounge equipped with four laptops with free computer access, a large flat-screen TV and continuous food and beverage for guests to utilize throughout their stay. The Board of Governors Room is our newest addition and features a custom-built U-shaped table, high-back leather chairs and built-in monitors at each place setting. This one-of-akind boardroom combines state-of-the-art technology with personal service that is the hallmark of the Conference Center. What are the current trends in the hospitality industry when it comes to business meetings/events? Clients are cautious and comparison-shop to find the most value for their money without sacrificing quality. They are looking for bottom-line costs without hidden service fees or additional charges that unknowingly affect their bottom line. Time is precious so quality equipment and technology is critical. More and more, clients are looking for facilities that offer knowledgeable IT support and the newest equipment to effectively run their meetings. During these difficult economic times, many employers are looking for ways to control costs. How affordable are your room rental packages? Our packages include all services and amenities needed to execute a meeting for five to 200, with one call. Our guests dictate the fees based on their attendance without minimum room fees, attritions or fees for additional services. We’ve created one-stop shopping that eliminates having to speak to several managers to book a meeting. We also offer all-inclusive packages. Our guests receive all the services from food and beverage to audiovisual and onsite IT support to ensure they are getting the full value offered. What services and amenities do you offer? The guest experience begins the first minute they enter the Conference Center, when they are greeted by our concierge and directed to their meeting room. Onsite IT support, in-room multimedia capabilities, continuous beverage service, plus morning pastries and fresh baked cookies are prepared daily in the Cyber Café. A full-service business center with conference phones and secretarial services is also available. Guests are treated as though it is their home with the added comfort, professionalism and confidentiality, and every need is met without another line item added to their invoice. Please explain your customer service guarantee. Our service guarantee is simple, “We are so confident that you will be pleased with our facility and service that we guarantee your satisfaction, or you don’t pay for the meeting.” At the Conference Center, seeing is believing. I would like to invite anyone who has not toured our facility to see it for themselves. Contact me at nzymm@mbausa.org or 814/833-3200, or view our rooms and list of amenities by clicking on the Conference Center button on www.mbausa.org.
VOL. X XIV, NO. 4 APRIL 2010 Manufacturer & Business Association Board of Governors
John Cline Dale Deist Timothy Hunter Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway
Editor in Chief Ralph Pontillo rpontillo@mbausa.org Executive Editor John Krahe jkrahe@mbausa.org Managing Editor & Karen Torres Senior Writer ktorres@mbausa.org Contributing Angie Angus Writers Tim Cline Jessica Crocker Jeff Lytle Matthew McCullough Robert McMunigle Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Feature Photography Bruce Bennett Photography 814/899-1161 Eli Ferriman Mark Fainstein Photography 814/461-8996 Ron Stephens La Mirage Studio 814/835-1041 Tom Surman Vantage Health Network Design, Production Printing Concepts Inc. & Printing printcon@erie.net
Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2010 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.
April 2010 > www.mbausa.org > 3
Business Buzz PENN STATE ERIE TO HOST INTERNATIONAL MANUFACTURING ENGINEERING CONFERENCE The School of Engineering at Penn State Erie, The Behrend College, will host this year’s American Society of Mechanical Engineers’ Manufacturing Science and Engineering Conference (ASME/ MSEC), the flagship forum for manufacturing engineering. The conference, featuring keynote speaker Dave Grzelak, chairman and CEO of Komatsu America Corp., will be held October 12-15, 2010, at the Bayfront Convention Center in Erie. As many as 400 engineers, researchers, educators and students from more than 20 countries are expected to attend. “Penn State Behrend’s growing national profile in engineering education and research led ASME to select Erie for the October conference,” said Dr. Ralph Ford, director of the School of Engineering. “MSEC will provide a unique opportunity to showcase our region’s manufacturing and educational resources to attendees.” The conference is designed to present and share cutting-edge manufacturing research and best practices in manufacturing science and engineering through technical paper presentations, panel discussions, keynote talks and poster displays. Topics include green energy system manufacturing, smart machining, laser-based manufacturing, sustainable nanomanufacturing, and advances in biomanufacturing. For more information, visit behrend. psu.edu/engineering/MSEC2010. L-3 COMMUNICATIONS WINS TECHNICAL EMMY L-3 Communications, a designer and manufacturer of microwave vacuum devices with facilities in Williamsport, Pennsylvania, earned a Technical Emmy award for the company’s Constant Efficiency Amplifier. The energy-saving tube is used to transmit digital TV signals 4 < www.mbausa.org < April 2010
DEPARTMENTS > Contact: Jessica Crocker
over the air, using about half the energy used in its counterparts. The Technology and Engineering awards, presented by the National Academy of Television Arts & Sciences as part of the 2010 International Consumer Electronics Show in Las Vegas, honor development and innovation in broadcast technology and recognize companies, organizations and individuals for breakthroughs in technology that have a significant effect on television engineering. In addition to its now awardwinning tube, L-3 Communications provides commercial devices for medical applications, satellite communications, television
broadcasting and high-energy plasma research. WOMEN’S APPAREL RESALE CHAIN OPENS IN ERIE Clothes Mentor®, America’s first national resale chain for adult women, recently opened a retail store in Summit Town Centre in Erie. The chain’s first Pennsylvania store is located at 7200 Peach Street and offers women’s clothing from specialty and department stores. Clothes Mentor, which is owned by Kelly and Larry Weldon, is a reseller of nearly 40 clothing brands, focusing on apparel for women from age 30 through their 60s.
MATRIC GROUP, R2J TECHNOLOGIES ACQUIRE MLS ELECTROSYSTEM TO FORM WINDURANCE The Matric Group and R2J Technolgies have acquired the controlling interests of MLS Electrosystem, renamed Windurance LLC, which engineers and manufacturers blade pitch control systems for utility grade wind turbines. Windurance, headquartered The Matric executive management team also announced that it has led the electronics manufacturing company, Matric Limited, headquartered in Seneca, in Corapolis Pennsylvania, to a successful implementation of the AS 9100 quality system, (Moon the international standard for aerospace manufacturing. Township), Pennsylvania, will continue to offer a full line of blade pitch control systems for customers worldwide. The Matric Group companies consist of: Matric Limited, established in 1971 and located in Seneca, Pennsylvania; and Dynamic Manufacturing, established in 1993 and located in Freeport, Pennsylvania. Both companies provide electronic contract manufacturing services, engineering contract design and PCB (printed circuit board) layout services, electromechanical assembly and cable assembly. R2J Technologies in Pittsburgh, Pennsylvania, will continue to provide world-class design and engineering capabilities to continue to develop state-of-the-art pitch control systems designed for Windurance. For more information, visit www.windurance.com.
EDCEC, CONNEAUT PORT AUTHORITY ANNOUNCE FORMAL AGREEMENT The Economic Development Corporation of Erie County (EDCEC) and the Conneaut Port Authority have entered into a “memorandum of understanding” to advance the common objective to develop the region’s economy. “This partnership is crucial as we continue to explore opportunities to take advantage of our region’s transportation assets and make us more effective competitors in world markets. We look forward to partnering with both the Conneaut and Erie ports to grow the region’s shipping and logistics industry,” said John R. Elliott, EDCEC president and CEO. VIDEON CENTRAL EARNS AS9100 CERTIFICATION Videon Central, Inc., a leading supplier of digital video product solutions for the in-flight entertainment and consumer electronic markets, announced that it has earned registration to AS9100. AS9100 is the
recognized international aerospace quality standard developed by representatives from the aerospace industry in Asia, Europe and the United States. Based in State College, Pennsylvania, Videon is a leading original design manufacturer with experience in the creation of custom products from high-end home theater to in-flight entertainment systems. The company also provides intellectual property, engineering design, system integration and product qualification services to major semiconductor and original equipment manufacturers for the consumer electronics market. For more information, visit www.videon-central.com. SAINT VINCENT URGENT CARE OPENS IN YORKTOWN PLAZA Saint Vincent Health Center has opened its second urgent care location in Erie’s Yorktown Plaza. Saint Vincent Urgent Care – West, located at 2501 West 12th Street, is one of two of the region’s only hospital-based facilities to provide an alternative to the hospital
emergency department. The center, which offers patients direct access to board certified physicians, assisted by nursing staff, as well as onsite imaging at the Saint Vincent Imaging Center and patient testing through Associated Clinical Laboratories, is open seven days a week and does not require an appointment. For more information, visit www.saintvincenthealth.com. MOLLO & ASSOCIATES MARKS FIRST YEAR IN BUSINESS Mollo & Associates, a sales agent for manufacturing firms with an emphasis in sub-contract machining, stampings and fabrications, recently completed its first year in business. The Fairview, Pennsylvania-based firm provides manufacturing firms with the expertise needed to maintain their facilities, focusing on the areas of new and existing crane service and repair, rigging, machine tool rebuild and retrofits, and forging machine/stamping press rebuilds and repairs.
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Health Matters
EDITORIAL > by Tim Cline
Sustainable Lifestyle Change
Tips for Improving Your Overall Health Many of us say we want to make changes in the way we live our lives when it can result in things such as weight loss, healthier eating or a more active lifestyle. Unfortunately, few of us can easily commit to making the changes permanent. Sustainable lifestyle changes are, naturally, the ones that ultimately produce the most good. However, finding ways to make changes that you can live with is not easy. Here are some tips: Keep it simple. Making a sustainable lifestyle change requires commitment and sustained effort over time. Taking on too many changes at once, usually results in frustration and failure on all counts. It’s much better to focus all of your resources on one lifestyle goal at a time. When the changes you have made are well integrated into your daily routines, it is time to consider the next lifestyle goal. Take it in small-size bites. Break big, long-term goals into smaller, easier-to-handle tasks. If your current weekly routine includes a 30-minute walk and your long-term goal is to engage in 150 minutes of physical activity per week, don’t try to get there overnight. Begin by adding 10 minutes of physical activity for the next week. Each week you hit your goal, add 10 minutes more until you reach 150 minutes per week. Setting smaller, short-term goals improves your motivation and helps you to avoid setbacks like injuries, or push-back from
others who may find it difficult to accommodate radical shifts in your daily routines. Play it S.M.A.R.T. Use this acronym to help you set doable, short-term goals: • Specific: Can you answer questions such as what you will do to achieve your goal, when and where you will do it, and why you’re doing it? If not, your chances of succeeding diminish. • Measurable: Ask yourself questions such as how much, how many and how often? • Appropriate: Do you feel good about trying to reach this goal and will it lead to your long-term goal? • Realistic: Do you have the time, equipment, transportation and other resources to reach this goal? Is it too easy? Too hard? • Timely: Can you set and meet specific dates for starting and completing your goal? Know what’s in it for you. Assess your situation. Consider what’s most important in your life. Think about how you want to live in the years to come. Then reflect on how making this lifestyle change can help. (For instance, you may want to be healthy enough to be an active grandparent.) Write down your reasons for change and carry it with you. Read it whenever temptation strikes or your motivation nosedives. This small boost can make the difference between perservering or backsliding.
Track your way to a healthy future. Humans tend to underestimate some behaviors (such as how much we eat) and overestimate others (such as how active we are). Don’t rely on memory or general assumptions like, “I’m being more active.” Get in the habit of recording your target actions every day. Start recording a week or so before you begin your change plan. This will give you an accurate baseline from which you can set your weekly goals. Involve others. Social support is important in reaching goals. For example, if you are attending a social event and you are trying to quit smoking, it helps if you have a friend who knows your goal and can help to distract you from the temptations you may face. For more information, visit www.upmchealthplan.com.
Tim Cline is the senior director of Clinical Training and Program Development Health Promotion, UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. This includes UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and EBenefits, which offer a full range of insurance programs and products.
April 2010 > www.mbausa.org > 7
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Legal Brief
EDITORIAL > by Matthew W. McCullough
Recognizing Minority Shareholder Oppression As the economy continues its struggles, minority shareholders in closely held corporations remain at risk of oppression at the hands of majority shareholders. Just as in good economic times when majority shareholders may desire to maximize their returns at the expense of minority shareholders, the current tough economic climate facing many businesses creates incentive on the part of majority shareholders to protect their own shrinking returns by using their power to take actions detrimental to minority shareholders. Majority shareholders have a fiduciary obligation to minority shareholders of the utmost good faith and loyalty, and have a duty to protect the interests of the minority. Therefore, a policy of corporate governance, where the objective is the denial of benefits to the minority interest, runs afoul of this fairness standard and calls to question the majority’s fulfillment of its fiduciary duty to the other shareholders. This is especially true in a closely held corporation where shares are not publicly traded and a fair market is rarely available. Pennsylvania courts have held that majority shareholders’ duty to the minority prevents them from using their power in such a way as to exclude the minority from their proper share of the benefits accruing from the enterprise. The failure of majority shareholders to fulfill their duty to minority shareholders often results in what is known as “oppression.” Oppressive actions refer to conduct that substantially defeats the “reasonable expectations” held by minority shareholders in committing their capital to the particular enterprise. A majority shareholder may not use the corporate process to deny minority shareholders the right to participate in the corporation or to exclude minority shareholders from their proper share of benefits accruing from the enterprise. A “freeze-out” or “squeeze-out” occurs
in a closely held corporation when a minority shareholder is removed from office or his power or compensation is substantially diminished, in an attempt to exclude the shareholder from any meaningful role in the corporation or deny him benefits from the corporation. Such an attempt by a majority shareholder to freeze-out or squeeze-out a minority shareholder constitutes a breach of this fiduciary duty. Tactics employed against a minority shareholder to achieve such a freeze-out include, but are not limited to: • the withholding of dividends; • terminating the employment or reducing compensation of the minority or their family members; • paying excessive salaries to majority shareholders; • withholding information relating to the operation of the corporation; • appropriation of corporate assets to other interests benefiting the majority; • refusing to enforce contracts that are beneficial to the corporation because the enforcement of those contracts would be personally detrimental to the majority; • siphoning off corporate assets by entering into leases or loans with terms favorable to the majority while at the same time detrimental to the minority; • denying minority shareholders appraisal rights; and • failure to hold meetings and excluding the minority from a meaningful role in the corporate decision-making. Recognizing minority shareholder oppression is one thing. Preventing or remedying oppression is another. Prevention is limited due to the inherent qualities of minority shareholder status — lack of controlling interest and illiquidity of minority
shares. The most effective means to prevent minority oppression is careful negotiation of the shareholder agreement at the outset. Unfortunately, litigation often results. In addition to derivative actions brought on behalf of the corporation, direct claims by minority against majority shareholders include breach of fiduciary duties/oppression, breach of a shareholder or stock purchase agreement, breach of an employment agreement and/or wrongful discharge. Remedies generally are designed to restore to the minority the benefits reasonably expected but not received. Depending upon the circumstances, remedies available to minority shareholders include inspection of corporate books, accountings, forced payment of dividends or other distributions, forced appraisal or buyout of minority shares, recovery of lost salary and other forms of compensation, and relief from a noncompete agreement. In extreme cases, the corporation may be forced to dissolve. For more information, contact Matthew W. McCullough at MacDonald, Illig, Jones & Britton LLP at 814/870-7602 or mmcullough@ mijb.com Matthew W. McCullough is a senior partner at MacDonald, Illig, Jones & Britton LLP. His practice consists primarily of labor and employment advice and litigation for employers, as well as a commercial litigation practice involving a wide range of contract and other business disputes in state and federal courts.
April 2010 > www.mbausa.org > 9
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EDITORIAL > by Robert B. McMunigle, CPA, PFS, ABV
Financial Adviser Valuation of Manufacturing Companies in Today’s Economy
Experts Expand Scope of Factors That Can Impact Value As the uncertainty of the economy continues, manufacturers and business valuation professionals are presented with a special challenge when it comes to valuing manufacturing companies. The short-term prospects for manufacturing are challenging to predict, given the economic downturn and recession. There is no crystal ball to allow valuators to know what the recovery will look like or the length of time it will take for demand to reach more typical levels. Manufacturers have always been at the mercy of external factors, from government trade regulations to foreign competitors. This lack of control is particularly tough when trying to assess risk moving forward. Even if a company is in good financial shape, if its suppliers or buyers are not doing well, the manufacturing company will suffer in value. Value Depends on Risk From plant location to research and development, valuating professionals look at a variety of factors when valuing a manufacturing business. In today’s marketplace, valuation professionals also are considering: Labor Issues The relationship a company has with its unions can significantly impact its value. Labor unions that are powerful in the workplace can exert enormous pressure on
management, and the union’s work rules sometimes make operations less flexible. Moving forward, flexibility will be a key to success. Automation Over the past 10 years, technology has increased productivity 50 percent. The downside is that automation requires a tremendous capital investment and capital is hard to come by these days. But if your company already has made the investment in technology, its value is increased. Green Initiatives Green initiatives and environmental awareness are on the minds of most management. Those willing to invest in green technology have a competitive advantage. Worthwhile green initiatives are recycling wastewater, reducing emissions and selling volatile organic compound (VOC) credits. What the valuation professional will ask is, “Do the rewards of these efforts justify the costs?” Inventory Turns The rules of inventory depend on the industry, but generally, it is believed to be riskier to have more inventory than less. Products or parts sitting in inventory can, for example, become obsolete, making inventory worthless. So quick inventory turns are attractive when it comes to value.
can be risky, especially if some of them are in questionable financial condition. More customers lead to risk being dispersed and income can likely be maintained if one customer fails. It is important to have regular income in today’s economy. Buying will increase leading to an upturn in manufacturing, as consumers feel more comfortable and secure financially. Until then, valuation of manufacturing companies will require particular experience and expertise. For more information or to ask questions regarding the valuation of manufacturing companies, contact Robert McMunigle at McGill, Power, Bell & Associates at 814/724-5890 or mac@ mpbcpa.com. Robert B. (Mac) McMunigle, CPA, PFS, ABV, is a partner with the certified public accounting and financial services firm of McGill, Power, Bell & Associates, LLP. He has been with the firm for more than 25 years. McMunigle specializes in business valuation, litigation support, tax accounting and planning, estate planning, and business succession planning. He also is certified as a Personal Financial Specialist (PFS) and offers individuals personal financial planning.
Receivables A concentration of customers April 2010 > www.mbausa.org > 11
Whether you’re traveling to Lake Erie for the first time, or you’ve been fortunate enough to live near its shores for years, the Bayfront Convention Center (BCC) in Erie, Pennsylvania, is indisputably a premier meeting destination in the Great Lakes region. Featuring 145,000 square feet of nautical-inspired modern architecture and breathtaking vistas of Presque Isle Bay, the BCC is a gem for this city of more than 100,000 situated in the northwest corner of the state and located within 500 miles of half the U.S. population. The sprawling world-class facility, which sits directly across the water from Presque Isle State Park, is, in a word, stunning, as well as a major driver for tourism in the Erie area. The Bayfront Convention Center offers its visitors the chance to enjoy entertainment and attractions that include seven miles of beaches, a mix of wineries, restaurants, year-round sporting events, theatrical productions, and a 2,000-slots casino and racetrack all within a 30-mile radius. Since its grand opening in August 2007, the $115 million BCC complex, which includes the 200-room Sheraton Erie Bayfront Hotel (conveniently attached by a glass-enclosed pedestrian SkyBridge), has been a magnet for attracting big names to Pennsylvania’s only lake port city and northwest Pennsylvania’s largest banquet venue. It’s a “Who’s Who” list that includes such high-profile guests as Presidents George W. Bush and Bill Clinton, former Alaska Governor Sarah Palin and then-U.S. Senator Barack Obama. In addition, the BCC has hosted major productions catering to the General Electric Annual Meeting of Shareowners in 2008, the North American Sea Glass Festival in 2009, and the Erie Kennel Club Dog Show that recently preceded the famed Westminster Kennel Club Dog Show held annually at Madison Square Garden. This year, the BCC is gearing up for The Pennsylvania Society’s Annual Membership Meeting and Luncheon, which, in late April, is expected to attract more than 200 visitors from every corner of the Commonwealth.
And thousands more guests are walking through the doors each week for regional events such as the Erie Home & Garden Expo; the annual Erie Auto Show; the RV, Camping and Powersports Expo; as well as countless meetings, banquets, weddings and exhibitions. According to BCC officials, these functions are a great example of the visibility that the Bayfront Convention Center has gained outside the area in the past three years, and the importance of all the people who worked behind the scenes to make them happen. Many of these events were brought to the Erie region thanks to the support of business and community leaders, fittingly referred to as “local champions.” “Frankly, a large number of projects on the Bayfront would not have taken place without these very active community members,” explains Jeff Esposito, general manager of the BCC. “Being able to work with them in bringing their conventions to Erie has just been that much more successful.” Whether you belong to a national board, state association or a group of hobbyists, the opportunity to become a “local champion” is limitless. But it does take initiative. “The idea of a ‘local champion’ all starts,” says Esposito, “with someone standing up in their committee meeting and raising his or her hand and saying, ‘Well, hold on a minute. Instead of going back to the same place we always go, why not give Erie a try? Or why not put Erie on our route rotation throughout the state?’ Because there’s a lot going on here, and it’s a great city.” Once the decision is made to host an event at the BCC, it is simply a matter of sitting down with Bayfront Convention Center planners to set the date, discuss the vision for the function and how they can provide a first-class experience — be it an extravagant black-tie affair, a fourday convention with breakout sessions, or a large banquet with budget restrictions. The advantage of working with the BCC staff is that clients can be as involved as they want to be in the planning process for an event scheduled for next week, next month, or in the next five years.
Erie’s Bayfront Convention Center is a world-class meeting space with the capacity to host large-scale meetings and conventions, including this expansive lobby for cocktail parties and exhibits.
Lake Erie’s premier meeting destination thrives thanks to ‘local champions’ 12 < www.mbausa.org < April 2010
Overlooking Presque Isle Bay, the 145,000-square-foot Bayfront Convention Center complex, including the attached luxury Sheraton Erie Bayfront Hotel, offers visitors one of the most impressive and beautiful views in the Great Lakes region.
“Some local champions, for example, want to be very involved, and they become essentially the committee chair,” explains Carmine A. Camillo, director of Marketing & Sales for the BCC. “But many of them have busy lives with companies to run and families to take care of, so they really rely on us, and that is our job, to be their marketing department.” Another component of that “job” is providing high-quality service at an affordable price, an increasingly important factor in the hospitality industry. More and more, BCC officials say, drive-to destinations like the BCC are the financially prudent choice compared to other major metropolitan areas, while offering equally impressive world-class facilities and service. That “world class” designation is not an embellishment. The Associated General Contractors of America (AGC), one of the largest and oldest national construction trade associations in the United States, selected the BCC as one of the most outstanding construction projects of 2008. Only 13 projects were chosen to receive the AGC’s prestigious Aon Build America Award, sharing the honor with such projects as Boston’s Symphony Hall, Major League Baseball’s Nationals Park in Washington, D.C., and the U.S. Embassy in Panama. “When you come to Erie, you’re going to find that the value is unsurpassed, and you are getting the same level of service you would get in New York City, Las Vegas or Orlando,” notes John Casey Wells, executive director of the Erie Convention Center Authority, which operates the BCC, and nearby Tullio Arena, Jerry Uht Park and Warner Theatre. “Erie now has the capability to host anything you can imagine.”
Champions for Their Community
Giving clients the canvas they need to create the event of their dreams is one of the reasons that the BCC has plenty of raving fans. According to Jennifer Reed, co-owner of Millcreek Township-based Relish and an organizer of the North American Sea Glass Festival in 2009, the BCC “worked really hard to make this an easy process for us. They wooed the president of the organization in the beginning ‘choosing process’ all the way through to the days of the event where they were on-call for all of our last-minute needs. They knew if we were taken care of, the likelihood of a return event was possible.” The Sea Glass Festival drew approximately 7,000 to Erie’s “crowning jewel,” with many of those in attendance coming from the tri-state region and as far away as Italy, Hawaii, Alaska, England and Canada. “The BCC would shatter anyone’s bad image of Erie,” Reed notes. “This center has a big city feel to it; anyone would be proud to host an event at this top-notch facility.” The feeling is mutual for those who planned what is now considered one of the region’s most highly anticipated events — the Erie Kennel Club Dog Show. Twice the group has held their function at the BCC, the most recent in January 2010.
The facility’s nearly 30,000 square feet of exhibition space in the Great Hall alone has allowed the group to expand their show to two days and increase their potential audience by its central location in downtown Erie. The BCC’s accessibility and hotel accommodations, located off a major highway, also were an immense benefit for show participants, handlers, judges and, most importantly, 800 show dogs. “What really sold it for us was the hotel connected to it — that was a big draw,” says Chairwoman Deborah Anthony. “Every one of my judges — and they came from New York City, Texas, and all over this year — said the only reason they agreed to judge at this venue was because it had a connecting hotel. They didn’t have to go outside. They had a top-rate restaurant available to them, and they had first-rate food served to them at the Bayfront Convention Center.” According to David Anthony, who assisted with the show, the American Kennel Club (AKC) has very specific rules about the venue that is selected, and must account for the rings, grooming and the general public. “A comment that was made by some of the AKC people was that they haven’t seen crowds standing five and six deep at the Best in Show on a Sunday afternoon in many, many years. It was remarkable.” The plentiful meeting space available at the BCC enabled organizers to accommodate more than 40 vendors in the main hallway, so attendees could not only enjoy the dog show but also have an “amazing” shopping experience. “I think that it’s remarkable that we were able to bring a show of this style to the area, which has never been known for large dog shows,” notes Erie Kennel Club President Anthony Stefanelli. “There’s only one Madison Square Garden, and obviously we’re not that big, but it is the same style of indoor show that we were so proud to be able to put on for the public.” The Pennsylvania Society, a prestigious, charitable, patriotic and nonprofit organization, whose membership includes renowned professionals, politicians, scholars and educators, selected the BCC for its April 30 Annual Membership Meeting & Luncheon. The decision is a credit to local champions and Council Members Tom Hagen, Roger Richards, and Craige Pepper-Victor, who, according to President LeRoy S. Zimmerman and Executive Director Carol McCullough Fitzgerald, were “very enthusiastic about bringing the Society to Erie for the Annual Meeting … (for the) first time.” Zimmerman, who served as the state’s first elected Attorney General and is senior counsel for the firm of Eckert Seamans Cherin & Mellott, LLC, and chairman of the Milton Hershey School Board of Managers, the Hershey Trust Company Board of Directors and Hershey Entertainment and Resorts Company, says the Society rotates the event throughout the Commonwealth each year. Over the past four years, the group has held its springtime Annual Meeting in such places as Philadelphia, Harrisburg, Pittsburgh and Hershey, and is well known for its Annual Dinner at the Waldorf held in New York City each December. >
The Bayfront Convention Center is transformational, catering to events ranging from presidential appearances to black-tie dinners, major tradeshows and expositions, such as the Home & Garden Expo put on by Erie Promotions.
Guests can expect unparalleled food and customer service at the Bayfront Convention Center, as well as high-tech audiovisual equipment in each of its meeting rooms, for a state-of-the-art meeting experience.
The Bayfront Convention Center “is an exciting place for us and relatively new,” notes Zimmerman. “It is the perfect place for our type of organization.” Carol McCullough Fitzgerald says guests will enjoy tours of the area, including the Maritime Museum, Brig Niagara and Tom Ridge Environmental Center, as well as the luncheon and meeting at the BCC, where a new Society president will be installed. “We highlight each area and combine educational and social components with the business of the day,” she notes. “The BCC has been very responsive and most hospitable and gracious… .”
World-Class Facilities and Service
The waterfront location, state-of-the-art facilities and customer service have quickly earned the facility high marks and a golden reputation. “It’s not uncommon for people who have never been here before or haven’t been here in 10 years to be impressed by what they see,” says Esposito. “It shows what a hidden asset we are.” The Bayfront Convention Center has not held back on ensuring that service is never sacrificed for cost, providing clients with an in-house linen operation, as well as bar and food service, which is overseen by the region’s premier culinary expert, Executive Chef Ismael Aguilar. “By having a bona fide executive chef and someone with Chef Aguilar’s level of experience, the menu becomes a guideline or roadmap, if you will,” notes Camillo. “It allows us to work within a variety of budgets. If you want to have a real splash, we can help with that too, and our chef can handle everything from carving ice to grilling steaks.” According to BCC officials, it’s the sum of a lot of parts that create a superior meeting experience. For example, there is a welcome station to greet guests when they walk in the door, and each client is equipped with a radio, telephone or personal attendant to assist them throughout the day. The BCC also takes pride in keeping the building spotless to make sure the convention experience is unparalleled. Each meeting room is backed with wireless Internet, audio, video, public address system and many other high-tech features. “It is key to any facility, any business, to take a moment to understand what your customers’ goals are. If you’re having a meeting and audiovisual (AV) is ‘mission critical,’ you may choose to have an AV technican/engineer in the room, and we can help you with that,” explains Esposito. “Other times, we can set up a dual-screen projection and a small mixing board. All of our rooms have outputs so that if you need to record minutes from your meeting, you can do it without a whole lot of intervention.” The best part is that all these amenities are just a small sample of what the Bayfront Convention Center has to offer. Once a group experiences the BCC, there is a good chance that they will return, and share their first-class experience with friends, colleagues and peers. “We have built a solid base of very happy customers, and those referrals and those experiences that are passed on to others are going to be key to our success,” notes Esposito. “We, our staff, continue to mature, which means that the service we offer keeps getting better and better. And we are working very closely with our hotel partners to create attractive presentations so that we can bring to groups to Erie, thereby contributing significant economic development.”
14 < www.mbausa.org < April 2010
The sky’s the limit, says Esposito, on what you’ll find happening at the BCC five years from now. “That’s the beauty of it – I don’t know,” he adds. “And the reason I don’t know is because we are so multi-purpose that it could be virtually anything. If it’s a Saturday, it might be a wedding; it could be an association meeting, or a home and garden show. It could be a room with a locomotive in it, as GE did for their annual event. That’s the really fun part, where we can have a dog show or boat show one week, and a president here the next.” “So, what do I see here in five years?” Esposito quips. “Hopefully a full building with happy people. The type of show? We can’t predict.” For more information, visit www.bayfrontconventioncenter.com.
Location: 1 Sassafras Pier, Erie, PA 16507 Contacts: Jeffrey A. Esposito, general manager jesposito@bayfrontconventioncenter.com Carmine A. Camillo, director of Marketing & Sales ccamillo@bayfrontconventioncenter.com Phone: 814/455-1260 Fax: 814/879-0910 Web site: www.bayfrontconventioncenter.com Meeting Space: 30,000 square feet of exhibition space includes: Great Hall: 28,800 square feet (divisible; South Great Hall (one-third) and North Great Hall (two-thirds) • 2,000 banquet seating • 4,000 theatre seating • Accommodates 160 10-by-10 foot tradeshow booths Grand Ballroom: • 13,500 square feet (East Ballroom is one-third; West Ballroom is two-thirds) • 1,000 banquet seating • 1,600 theatre seating • Accommodates 77 10-by-10 foot tradeshow booths Breakout Rooms: • 14,000 square feet • 15 rooms • Seating in multiple configurations for groups in size from four to 400 Sunset Terrace: • 8,800 square feet • Outdoor event space at the north end of the complex, right on the water Hotel Accommodations: The BCC complex is connected to the Sheraton Hotel, which offers 200 nonsmoking rooms and 5,800 square feet of meeting space. There are numerous hotels and motels in the Erie area for additional lodging. Click on “Where to Stay” on either www.bayfrontconventioncenter.com or www.visiteriepa.com. Parking: Free onsite parking for nearly 500 vehicles. Economic Impact: In the past seven years, according to Joe Holody, director of Convention Sales & Service for VisitErie, the travel and tourism organization has placed more emphasis on conventions, reunions and sports, generating an estimated 63,350 visitors, 45,524 hotel room nights and $32.65-million economic impact to the region. From that number since 2006, VisitErie has generated more than 85 convention request for proposals (RFPs) to the Bayfront Convention Center alone, which has resulted in 24 bookings for years 2008-2013, translating into an estimated 8,700 attendees, 10,700 hotel room nights and a $5.3-million economic impact to the community. This is a staggering number when you include the events booked directly by the BCC, which has brought in approximately 300,000 visitors from all over the country since August 2007.
April 2010 > www.mbausa.org > 15
HR Connection SURVEY SHOWS CONFERENCES CAN BE GOOD FOR BUSINESS Networking at conferences is good business, according to a recent survey of chief financial officers (CFOs) developed by Robert Half Management Resources. Polled CFOs were asked, “Other than in the office, what was the location of your most successful business meeting ever?” Of those respondents, 25 percent said it was conducted at a conference or tradeshow. The remaining responses included: restaurant (22 percent); golf course (10 percent); on a trip/plane (7 percent); sporting event (1 percent); office only (27 percent); and other (8 percent). BUSINESS TRAVEL SIGNALS UPTICK IN 2010, EXPERTS SAY A new survey of travel agents suggests that business travel bookings in 2010
*NSURANCE 1OSTINGS FROM 1ATTY The
U.S. Treasury and Internal Revenue Service have issued new guidelines for the max imum contributions to Health Savings Accounts (HSA) for 2010. Individuals may contribute an ann ual maximum of $3,050, while families, covering two or more individuals, may contribute up to $6,150. There is a catch-up contribution of $1,000 for Patty Smith is individuals who the are age 55 and older and not on Med director of Em ployee icare. HSA Benefit Service plans must have a minimum deducti s at ble of $1,200 the Manufactu rer & for individuals and $2,400 for fam Business Asso ilies. For more ciation. information, contact Patty Smith at 814/833-3200, 800/815-2660 or psmith@mbausa .org.
will at least match, if not exceed, last year’s levels, according to Reuters. In a recent poll of 227 Travel Leaders travel agents, 28 percent of respondents expect business travel
bookings to top 2009’s levels, while about 40 percent expect bookings to remain the same. Only 12 percent predicted fewer bookings in 2010.
J and J TRAVEL, INC Kim Zboyovski Full service Agency Corporate and Leisure
2690 Cherry Street Erie, Pa. 16508
www.jandjtravel.com
Imagine what we can create. ArtsErie is committed to supporting the arts in our community by: • Serving as an advocate for the arts in Northwest PA • Growing the Erie Arts Endowment to provide ongoing support • Facilitating research and studies on arts and culture
www.artserie.org • (814) 452-3427 16 < www.mbausa.org < April 2010
Phone: 814-452-4682 Toll Free: 800-544-6289 Fax: 814-459-0695 Email: kim@jandjtravel.com
DEPARTMENTS > Contact: John Onorato
How to Make the Most of Your Company Retreat Sometimes you have to step back to go forward. That is the idea behind company retreats.
Develop materials for the working sessions. Distribute information ahead of the retreat so attendees arrive prepared for meaningful discussions.
Here are some key steps you may want to consider to make sure that you make the most of the time set aside for you and your staff. Reserve your site early. Some locations book six months to a year in advance. Since brochures and Web sites can be misleading, always send someone to check the site in person. Establish the goals for the retreat. Whether the goals are team building, morale boosting, creating a long-range plan or plotting the launch of a new product, be specific. Decide who should attend and if attendance will be mandatory. Ask yourself: In order to meet the goals, who needs to be at the table?
key conclusions reached during the retreat. Donâ&#x20AC;&#x2122;t let this vital step slip away in the flurry of departure preparations.
Appoint an administrative liaison to handle logistical issues. Make sure all attendees have the liaisonâ&#x20AC;&#x2122;s cell-phone number. Consider an outside facilitator to act as moderator at key meetings. An unbiased outsider can keep discussions focused as well as lead post-retreat sessions to assess how well the group has implemented ideas and goals. Involve attendees in significant roles. Assign them to present specific material at meetings or to lead breakout sessions.
Create a detailed evaluation form for attendeesâ&#x20AC;&#x2122; feedback after the retreat. This will make planning future retreats easier. For more HR assistance, contact me at 814/833-3200, 800/815-2660 or rbruno@ mbausa.org.
Rose Bruno is a PHR-certified HR generalist at the Manufacturer & Business Association.
Schedule a specific time at the final work session to document
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www.kmgslaw.com April 2010 > www.mbausa.org > 17
OntheHill
A Guide to the 2010 3rd Congressional District Primary Election
The 3rd Congressional District of Pennsylvania represents approximately 638,000 residents in Erie County, the as well as parts of Warren, Venango and Armstrong. One of Pennsylvania’s 19 representatives, this elected off members. The candidates listed below all oppose “cap and trade” legislation and the Employee Free Choice A permanent repeal of the death tax, a flat tax system, a consumer-driven health-care system, limited governme Manufacturer & Businesss Association key votes. We recently asked them to distinguish themselves from their below. The current 3rd District Congresswoman and challenger Mel Marin (D-Mercer County) did not respond
Steven Fisher – R Crawford County Profession: Employer Benefits/ Group Health Insurance www.stevefisherforcongress.com
Ed Franz – R Crawford County Profession: General Electric Transportation Systems www.edfranzforcongress.com
Clayton Grabb – R Butler County Profession: Mental health professional for Janssen Pharmaceutica www.grabbforcongress.com
How would you spur economic growth?
We must first review the many regulations that apply to businesses and determine which ones are having a negative impact. We must then remove or rewrite such legislation. We must also create tax credits for both full-time and part-time employment, as some employers are reluctant to hire full-time employees, as there are other related costs. We must also have real healthcare reform that reduces the cost of providing employer-sponsored health insurance.
I believe that government can spur economic growth by cultivating an environment that is conducive for entrepreneurial development and the growth and expansion of existing businesses. Government does this by eliminating unnecessary hurdles, reducing excessive taxes, and by inspiring businesses with the knowledge that this is not only the greatest and most prosperous country to live in, but also the greatest country to cultivate your business in.
Efforts have been made by, for example, The Pittsburgh Technology Council, but a means to marry small businesses like machine shops, manufacturers, design and engineering firms, and Internet firms in a supply chain manner is what will be the foundation for further growth. Actual “real need” projects or competitions to reward self-made consortiums among businesses with money prizes to grow their businesses will drive growth and collaboration.
In your opinion, what is the role of government?
The role of the federal government should be to protect the rights of the citizens granted to us by the Constitution, protect our country and businesses from unfair trade or foreign threats, and to make sure that federal laws are enforced. The federal government should not be involved in issues that are not clearly spelled out in the Constitution. Issues such as health care and education should remain the responsibility of state governments.
The fundamental role of government is to provide for the protection of the rights, liberties, and privileges of the people it governs so that they can live as they see fit in their pursuit of happiness. I believe government does not exist to do things for us, but it exists to provide protection of our freedoms so that we can do things for ourselves.
The role of government is to realize that the only thing they can make is “not things,” but “make things easier” for business. Directing money with earmarks to certain regions lobbied by representatives to grow businesses in their home states does not mean that is the best utilization of the resource, even with the best intentions. Businesses must complete on a level playing field without government involvement, and business must observe the same.
Why would you like to be elected to serve the 3rd Congressional District?
I have been in marketing and administration for 30 years. In recent years, I have seen individuals and businesses struggle as a result of poor government decisions and too many regulations. I am very concerned about the future for my children and grandson, and their generations. I will work hard to fairly represent all citizens, while fighting to restore confidence and faith in our government through fiscally responsible decisions.
I believe the 3rd District and our nation needs elected officials that have a clear understanding of what average taxpayers need, want, and go through on a daily basis. It’s obvious now more than ever that our elected officials are disconnected from the very people they represent and the issues they were sent to resolve for their constituents. As your Congressman, I pledge to stay committed to the needs and concerns of all in the district.
To serve, listen and to represent what I hear from constituents. I am only a conduit for the voice of the people. It is like in business or economics … the voice of the customer. If you don’t hear that voice, you only hear the voice in your own head, and frankly that is where Washington has gone wrong. But likewise, I am counting on those voices to speak up to represent them best.
18 < www.mbausa.org < April 2010
DEPARTMENTS > Contact: Sheila Sterrett
Reminder:
PA Primary Election is Tuesday, May 18
e majority of Crawford, Mercer, and Butler counties, ficial also serves in the U.S. House as one of 435 Act, or “card check.” They unanimously support the ent and term limits for Congress — all considered fellow candidates by responding to the questions d to our survey as of press time.
Visit the Pennsylvania Department of State’s Web site, www.votepa.com, an online voting and information resource center. While there, you can register to vote, find your local polling place, or even sign up to receive election reminders.
Did You Know?
Paul Huber – R Crawford County Profession: Former owner, president and CEO of SECO/ Warwick Corporation www.huberforcongress.com
Mike Kelly – R Butler County Profession: Dealer/owner of Kelly Chevrolet-Cadillac, Inc. www.mikekellyforcongress.com
Dr. Martha Moore – R Mercer County Profession: Family practitioner and owner of a medical clinic in Sandy Lake www.moore4congress.com
Growth would come from removing barriers. Congress should reduce the tax burden on individuals and businesses, pass meaningful regulatory and tort reform, develop a national energy plan that uses a comprehensive approach, including oil, coal, gas, nuclear and green technologies. They need to reduce government spending, and work to eliminate the national debt. Government does not create jobs, but it must create an environment where our freeenterprise system can thrive.
To spur economic growth we need to look to the private sector and not the government. The stimulus bill created unsustainable government jobs that our children and grandchildren will have to pay back through heavy taxes. We need to cut spending, reduce the debt and give actual tax incentives to businesses to promote growth.
Cut taxes on small businesses and corporations; sensible regulation; and limiting the role of government and its spending.
The proper role of government is to do what the free enterprise system cannot, such as providing for national security and developing an infrastructure that makes possible interstate commerce. Over the past two years, Congress has expanded the size and role of government in a manner that is detrimental to our economic future. The federal government should not be in the business of taking ownership stakes in banks, financial institutions or manufacturers.
Our government was meant to serve as a safeguard for the people, not to interfere with the day-to-day operations of business. We are in trying economic times and the path we are on now stifles the private sector. The government needs to promote the growth of private business and not promote government. It is the role of government to protect the people, serving as an overseer and not a regulator.
The federal government should be limited, as per the Constitution, and states, per the 10th Amendment, with the local government having the biggest role since they are closest to the people. We have this BACKWARD, and are moving very fast in the wrong direction!
The stakes for our economic future couldn’t be higher, and my lifetime of experience owning and running a manufacturing company, along with my work in economic development, has given me a perspective that is urgently needed in Congress. I know how to grow our economy because I have made payroll, set and met budgets, and created jobs. I will be a leader in reducing government spending and cutting our crippling national debt.
For too long representatives of this district have viewed this seat as a career instead of an opportunity to give back. I am running to serve the interests of the people, not the special interest groups. As your next Congressman, I want to serve as the microphone for the people, not a soundboard for D.C. politicians, by bringing my business experience and community involvement to Washington, so Washington can work for you.
I have strong principles and values and am not ashamed of them and will not apologize or back down! These principles have worked every time they have been tried.
The Founding Fathers created the U.S. government with three branches — legislative, executive and judicial — to ensure equal and fair representation of all citizens. The legislative branch is comprised of the U.S. House of Representatives and the Senate, with its chief function being the creation of laws. To determine the number of representatives in the House, states are divided into congressional districts, based on population, with one member representing each district for a two-year term. Pennsylvania, once a political powerhouse, currently holds 19 congressional seats. The Commonwealth, however, has continued to lose two or more seats every 10 years since 1930. This year may be no different, as the 2010 Census will tally the slow-growing Pennsylvania population, and the state will likely lose a House seat. For more information on the upcoming election or public policy issues, contact the Association’s Government Affairs Department at 814/8333200 or 800/815-2660.
April 2010 > www.mbausa.org > 19
Legal Q&A IS OVERBOOKING OF AN AIRLINE ILLEGAL OR AGAINST FEDERAL REGULATIONS? Overbooking is not illegal, and most airlines overbook their scheduled flights to a certain extent in order to compensate for “no-shows.” Passengers are sometimes left behind or “bumped” as a result. When an oversale occurs, the Department of Transportation (DOT) requires airlines to ask people who are not in a hurry to give up their seats voluntarily, in exchange for compensation. Those passengers bumped against their will are, with a few exceptions, entitled to compensation.
involuntarily. Generally at the check-in or boarding area, airline employees will look for volunteers when it appears that the flight has been oversold. Before volunteering to be bumped, according to the Office of Aviation and Consumer Protection of the Department of Transportation, you may want to get answers to these important questions:
IF I VOLUNTEER TO BE BUMPED, WHAT AM I ENTITLED TO? When there is an overbooking, the DOT requires airlines to seek out people who are willing to give up their seats for compensation before bumping anyone
• Will the airline provide other amenities such as free meals, a hotel room, transfers between the hotel and the airport, and a phone card? If not, you might have to spend the money it offers you on food or lodging while
• When is the next flight on which the airline can confirm your seat? The alternate flight may be just as acceptable to you. On the other hand, if the airline offers to put you on standby on another flight that's full, you could be stranded.
you wait for the next flight. The DOT has not mandated the form or amount of compensation that airlines offer to volunteers. You are free to negotiate with the carrier for mutually acceptable compensation. Airlines generally offer a free trip or other transportation benefits to prospective volunteers. IF I AM BUMPED INVOLUNTARILY, WHAT AM I ENTITLED TO? The DOT requires each airline to give all passengers who are bumped involuntarily a written statement describing their rights and explaining how the carrier decides who gets on an oversold flight and who doesn’t. Those travelers who don’t get to fly are frequently entitled to “denied boarding” compensation in the form of a check or cash. The amount depends on the price of their ticket and the length of the delay.
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Call Doug Loesel or Joe Parlak and find out.
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DEPARTMENTS > Contact: John Onorato
Compensation Rules for Business Travel Travel-time problems can be among the most complex of all hours-worked issues. Whether and to what extent travel must be counted as hours worked frequently can be evaluated only in the context of specific facts and circumstances. Federal and state law generally require that employees be paid for all hours that they work, and â&#x20AC;&#x153;workâ&#x20AC;? is defined as activities that further the employerâ&#x20AC;&#x2122;s interests. There are numerous specialized rules concerning travel time. Overnight Travel When employees must take a trip by car, train, or other public transportation (for example, air travel) that keeps them away from home overnight, all time spent traveling during the hours corresponding to the employeeâ&#x20AC;&#x2122;s normal working hours must be counted as time worked. 29 C.F.R. § 785.39. Travel hours on Saturdays, Sundays, and holidays that correspond
to an employeeâ&#x20AC;&#x2122;s normal working hours on other days of the week must also be counted as time worked. However, bona fide meal periods can be excluded.
workerâ&#x20AC;&#x2122;s home and point of departure, for example, an airport or train station. This home-to-depot time falls in to the standard exemption of routine commuting.
The Wage & Hour Division maintains an enforcement policy that it will not treat as compensable hours the time that an employee spends traveling â&#x20AC;&#x153;away from home outside of regular working hours as a passenger on an airplane, train, boat, bus, or automobile.â&#x20AC;? However, if employees are doing any work while traveling then they must be paid.
Same-day travel out of town counts as hours worked, whether the employee is a driver or passenger, and whether the travel takes place during the employeeâ&#x20AC;&#x2122;s normal working hours.
Special One-Day Trips When employees who normally work at one location are given a special oneday assignment that requires them to travel to another city, all the travel time involved counts as time worked. 29 C.F.R. § 785.37. The only time that may be excluded from payment are meal periods and the time spent traveling between the
Grow your business by accessing global markets.
For more information, contact me at 814/833-3200, 800/815-2660 or tlamary@mbausa. org. Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Associationâ&#x20AC;&#x2122;s Legal Services Division.
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814-899-6022. April 2010 > www.mbausa.org > 21
Tech Update
EDITORIAL > by Jeff Lytle
Telecommunications Technology Upgrades Worth the Investment Technology: it excites us, it frustrates us, it makes our life easier, and it helps us to be more productive. And it is changing so quickly in the telecommunications industry, it can often seem hard to keep up with. That’s why I encourage you to take a moment to explore this new technology and how it can benefit you and your business in the areas of mobility, customer service and cost savings.
office phone and any other device(s) of your choosing. It allows you to ring your office phone, cell phone, home phone, etc., simultaneously. This application largely enables you to be mobile while still receiving calls. Another nice feature of this application is the caller comes back to your office voicemail if the call is not answered, saving you time by not having to check multiple mailboxes.
Mobility As many of you know, there have been major improvements in cordless accessories for IP phones, with cordless handsets and headsets, which can give you a far better range than Bluetooth can.
Customer Service Any business that has a group of employees answering sales calls knows that customer wait time is one of the biggest complaints people have. If you have a potential customer on hold for too long, they are most likely going to hang up and go somewhere else to get what they need. How can you stop this from occurring if you don’t even know it is happening? What if you are trying to determine scheduling and want to maximize your work force during peak call times? What if customer satisfaction isn’t where you want it to be, but you don’t know what the problem is?
There also are cordless phones that can cover entire hotels, junkyards, hospitals and schools. These phones give the employee who is always on the move the ability to stay in touch while being mobile. Did you know that there is a new module that allows you to plug your home telephone line into your home office IP phone? This allows you to have one phone in your home office that will ring with your office calls as well as your residential calls. And, it makes it so you do not have to clutter your home office with two phones. As an added benefit, it handles the 911 issue because a 911 call will go out your home telephone line, which, in turn, will present the proper identification of your home address to the emergency dispatcher. Similarly, there are applications out now that give you mobility by presenting your office calls to your
Advances in the telecommunications industry can give you a solution. With Reporting Packages that integrate with your Telephone System, you can see Real-Time Data. This data tells you how many calls are waiting to be answered, how many calls were abandoned while waiting to be answered, and how many times a caller was transferred or put on hold. These Reporting Packages also provide historical data. This information gives supervisors the ability to see when their peak
call times are, what geographical areas called the most, and what employee has taken the most calls, for example. Having a dashboard in front of you showing exactly what is happening with your calls, at the time it is happening, is priceless. Cost Savings Say you want to add a phone but there currently isn’t a phone jack or data jack at this location. There is now a stand you can attach to an IP phone that brings the phone to life, running off your wireless network. This saves you the costs associated with running cable, if running cable to this location is even a possibility. Finally, I could go on and on, but these are just a few examples regarding the advances in technology in the telecommunications industry. The most important thing to remember is that this new technology is available for small businesses, not just large ones. For more information, visit www.ecsinc.us.com or call 800/837-5790.
Jeff Lytle is a sales representative for Electronic Communication Service (E.C.S.) located in Erie County. E.C.S. has been in the telecommunications business since 1989.
April 2010 > www.mbausa.org > 23
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EDITORIAL > by Angie Angus
Value Innovation:
The Cornerstone of Blue Ocean Strategy
Angie Angus is the manager of BOS Programs and Support Services.
This article is the second in a series that will feature 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. Traditional strategy work focuses on competing with your rivals in either one of two ways, price or quality. It is widely believed that you must choose one of these two in order to beat your competition, and gain a larger share of the market. For the most part, our global economy has been defined by classic strategic planning which involves offering your customer a high quality product at a higher cost or offering a lower quality product at a lower cost. Although traditional strategic planning is important and will always matter, it is increasingly not enough. Today’s global competition and shrinking market pools are causing red oceans of competition to become even more competitive. The only way for companies to experience unprecedented growth and success is to make their competition irrelevant by opening up entirely new markets. There is a cognitive shift involved in consciously choosing not to engage in head-to-head competition with your largest rival. To reach out into a blue ocean, companies must focus on the alternative, creating a leap in value for both the buyer and your company, thereby opening up a new, uncontested market. This is what companies that have experienced exceptional, new demand and success have used for their approach. This leap in value is the cornerstone of Blue Ocean Strategy, which is known as “value innovation.” According to Blue Ocean Strategy, “Value innovation places equal emphasis on value and innovation. Value without innovation tends to focus on value creation on an incremental scale, something that improves value but is not sufficient to make you stand out in the marketplace. Innovation without value tends to be technology-driven, market pioneering, or futuristic, often shooting beyond what buyers are ready to accept and pay for. In this sense, it is important to distinguish between value innovation as opposed to technology innovation and market pioneering…. What separates winners from losers in creating blue oceans is neither bleeding-edge technology nor ‘timing for market entry.’ Sometimes these exist; more often, however, they do not. Value innovation occurs only when companies align innovation with utility, price and cost positions. If they fail to anchor innovation with value in this way, technology innovators and market pioneers often lay the eggs that other companies hatch.
Cost
Value Innovation
Buyer Value Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean and a break from the competition. Importantly, value innovation defies one of the most commonly accepted dogmas of competition-based strategy: the value-cost trade-off. It is conventionally believed that companies can either create greater value to customers at a higher cost or create reasonable value at a lower cost. Here strategy is seen as making a choice between differentiation and low cost. In contrast, those that seek to create blue oceans pursue differentiation and low cost simultaneously.” Value innovation is a whole system approach that must be incorporated companywide. Innovation in one specific area of a company may allow the company to experience strives forward but the company will not find itself in a blue ocean. Simultaneously raising value for both the customer and the company while driving down costs will provide both the buyer and the company with a win-win situation. The tools, concepts and methodologies of Blue Ocean Strategy show how to develop value innovation within your company or organization while minimizing risk. Next: Looking in the Mirror — The strategy canvas is an analytical tool that is both diagnostic and action-oriented, and is central to value innovation and the creation of blue oceans. 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. April 2010 > www.mbausa.org > 27
People Buzz ACCUSPEC ELECTRONICS APPOINTS NEW PRESIDENT AccuSpec Electronics, LLC, a worldclass electronic manufacturing services company based in Erie, has named Michael Evans, a veteran financial and supply chain manager, president. He is responsible for the management and leadership of AccuSpec Electronics, and reports directly to the company’s Board of Managers. Evans has a bachelor’s degree from the Pennsylvania State University, and an MBA from the University of Pittsburgh, Katz School of Business. HAND AND UPPER BODY REHAB CENTER ANNOUNCES STAFF CERTIFICATION Megan Delsandro OTR/L, CHT, a licensed occupational therapist with the Hand and Upper Body Rehabilitation Center in Erie has successfully passed a national comprehensive test of advanced clinical skills giving her the distinction of a Board Certified Hand Therapist. Delsandro has been with the Hand and Upper Body Rehabilitation Center since June 2003 and specializes in custom splinting, treating the upper extremities and performing computer workstation evaluations. MALENO DEVELOPMENT PRESIDENT HONORED John D. Maleno, president of Maleno Development in Erie, was awarded the Pennsylvania Builder Association’s Distinguished 28 < www.mbausa.org < April 2010
Achievement Award, during the Association’s President’s Installation Banquet in Scranton, Pennsylvania. Maleno was recognized with the statewide award based on his lifetime of achievement to both the housing industry and his surrounding community. More than 250 guests were on hand to applaud Maleno for his achievement. PENN STATE ERIE SELECTS NEXT CHANCELLOR Donald L. Birx has been chosen as the next chancellor of Penn State Erie, The Behrend College. Birx will replace John D. “Jack” Burke, who is retiring June 30. As the campus’ chief academic and administrative officer, Birx will be responsible for the quality of Penn State Behrend’s academic programs in teaching, research and service, and overall operations of the campus, including strategic planning and budgeting, fundraising, alumni and community relations, intercollegiate athletics, outreach activities, faculty and staff development and personnel matters. Birx comes to Penn State from the University of Houston System, where he has been vice president of research since 2006. Additionally, Jennifer Duda has been appointed e-communications coordinator in the Office of Marketing Communication at Penn State Behrend. Nicole Fedders has been appointed coordinator of student organizations and program
EDITORIAL > Contact: Karen Torres
development in the Division of Student Affairs at Penn State Behrend. Laurence Mroz has been hired as an associate director of development of the Office of Development and Alumni Relations. EDCEC WELCOMES CONTROLLER VaLinda McCoy recently joined the Economic Development Corporation of Erie County as the controller. In this position, she is responsible to assist the chief financial officer in providing support as it relates to the accounting and financial functions of the Corporation, including preparation of monthly financial statements, oversight of accounts payable and accounts receivable, managing cash flow as well as budget preparation. Previously, McCoy was employed by Presque Isle Rehabilitation and Nursing Center as their business office manager. SCHAFFNER, KNIGHT, MINNAUGH APPOINTS NEW PRINCIPAL Erie-based CPA firm Schaffner, Knight, Minnaugh & Company, P.C. recently announced that David J. Herbe, CPA, has been named a principal of the firm. Herbe, a tax consulting senior manager and director of client accounting services, joined Schaffner, Knight, Minnaugh & Company, P.C. in 1999. With more than 25 years of accounting experience, Herbe specializes in corporate and individual income tax consulting, sales tax consulting, accounting
principles, buy-sell transactions, small-business consulting and estate planning. Additionally, Keith R. Gordon, CPA, CVA, joined the firm in 2009. With more than 16 years of experience, his main concentration is business valuation. Previously, he was the managing partner of Gordon & Associates, which is a practice exclusively dedicated to business valuations, litigation support and interim controllership services. Schaffner, Knight, Minnaugh & Company, P.C also announced that the American Institute of Certified Public Accountants (AICPA) awarded the credential of Certified in Financial Forensics (CFF) to Janel M. Bonsell, CPA, CFF, who is principal and director of Human Resources. She was named principal in 2009. Bonsell earned her B.S. degree
in accounting from Gannon University. She became a Certified Public Accountant in 1996 and a Certified Fraud Examiner in 2005. Professionally, she is a member of the American Institute and Pennsylvania Institute of Certified Public Accountants. She is also a member of the Association of Certified Fraud Examiners. VNA OF ERIE COUNTY NAMES DIRECTOR OF FINANCE Robert Hersch has been named director of Finance at the Visiting Nurse Association of Erie County. Prior to joining the staff at the VNA, he had extensive experiences and a diverse background in financial operations. He served as director of Finance at Velocity Network and at Seaway Manufacturing Corporation in Erie. He was the business and operational manager for several companies in Boston, Massachusetts. Hersch received
an MBA from Suffolk University and a bachelor’s in accounting from Pennsylvania State University at University Park. Since 1906, the Visiting Nurse Association (VNA) of Erie County has provided professional home health care and compassionate service to home-bound patients. VNA services augment institutional care of hospitals and nursing homes. DECISION ASSOCIATES’ RYAN EARNS RECOGNITION Jim Ryan, partner and senior consultant with Decision Associates, was welcomed into the Profiles International Honor Society for the second consecutive year at the Profiles International Global Conference in Dallas, Texas. Profiles International is the world’s fastest-growing preemployment and human capital development assessment firm with strategic business partners in more than 100 countries on six continents.
April 2010 > www.mbausa.org > 29
PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
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