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BUSINESS M A G A Z I N E Manufacturer & Business Association
Reddog Industries
VOLUME XXV, NUMBER 10
Family Effort Molds Manufacturer’s Reinvention, Global Success / Page 14
OCTOBER 2012
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14
October 2012
EDITORIAL >
FEATURES >
Why value-based networks are increasing in popularity to help contain health-care costs. ANDREA GIOIA
Association President Ralph Pontillo explains how capitalism has increased individual freedom and opportunity far more than any other economic system in history.
9 / Legal Brief
14 / Reddog Industries
7 / Health Matters
Understanding and benefiting from Pennsylvania’s natural gas boom. TOM PENDLETON
11 / Financial Adviser
What employers need to ask when assessing narrow network plans. JIM MCKIBBEN
SPECIAL SECTION > 19 / Made in PA
Read the profiles of some of the region's most dynamic manufacturers and their areas of specialization.
INPA
Products American Turned Company Name: Drive, Fairview, PA 16415 Klier Address: 7626 4-4200 Phone: 814/47 tpteam.com Website: www.a B. Eighmy President: Gerald Founded: 1984 yees: 125 Number of Emplo Automotive, fluid power, : Industries Served electric and gas n CNC and rotary Contract precisio Specializes in: ing of ferrous and transfer machin . non-ferrous metals
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Matric , PA 16346 Company Name: Hill City Road, Seneca Address: 2099 7-0716 Phone: 814/67 atric.com Website: www.m E. Turner, Jr. President: Richard Founded: 1971 yees: 285 Number of Emplo Energy, industrial controls, : Industries Served ns, aerospace, , communicatio medical devices ery and heavy machin transportation t Electronic contrac Specializes in: full turnkey), services (PCB to , manufacturing , aftermarket service design ering engine ld), and (including overmo cable assembly build) (box ly assemb electromechanical
nts Beacon Lubrica Company name: Edinboro Road Address: 11170 Edinboro, PA 16412 4-7535 Phone: 814/73 s.com eaconlubricant Website: sales@b y Huntle M. President: Patrick Founded: 1995 yees: Seven Number of Emplo Industrial, commercial, : Industries Served automotive industrial oils, Manufacturer of nts and Specializes in: automotive lubrica fluids, metal working in various ts are available greases. All produc industry sizes.
of Western PA Solar Atmospheres Company Name: ial Road, Hermitage, PA 16148 Address: 30 Industr 2-0660 Phone: 724/98 olaratm.com Website: www.s Hill President: Robert Founded: 2001 yees: 45 l, power Number of Emplo : Aerospace, medica Industries served more. many of large, generation and Vacuum heat treating Furnaces up Specializes in: parts. , manufacturing mainly titanium ing, Fluorescent 10-20 bar quench , Nadcap, to 36 feet long, AS9100 / 1 ion. ISO900 Penetrant inspect ITAR. SHARP,
DEPARTMENTS > 4 / Business Buzz 22 / HR Connection 2012 .com < October
abizmag 20 < www.mb
3 / For What Itâ&#x20AC;&#x2122;s Worth
Through numerous capital improvements and innovative manufacturing techniques, Reddog Industries is an example of reinvention at its best. Learn how the Hilbert family has transformed the Eriebased operation from a mere tool-and-die company to a world leader in the design and production of a vast array of tooling applications and specialized machining.
5 28
24 / On the Hill
On November 6, Pennsylvania voters will decide who will represent them in their respective districts for a two-year term in the U.S. House of Representatives. To help determine the best choice for office, the Association recently asked the candidates in Congressional Districts 3, 5, 10 and 12 what they would do to improve Pennsylvania's business climate, if elected.
28 / Events
See exclusive photos of our more than 100 professional development and computer training graduates.
26 / HR Q&A 32 / People Buzz
Read on the Go! For the most current Business Magazine updates or to register for a digital subscription, visit www.mbabizmag.com. Be sure to also fan us on Facebook and follow us on Twitter! October 2012 > www.mbabizmag.com > 1
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For What It’s Worth
EDITORIAL > by Ralph Pontillo
VOL. X X V, NO. 10 OCTOBER 2012
Capitalism is Not a Zero-Sum Game
Manufacturer & Business Association Board of Governors
Editor in Chief
Ralph Pontillo is the president of the Manufacturer & Business Association. Executive Editor
Capitalism is often defined as an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. In today’s political environment, capitalism is under attack by those who believe that this “economic system” based on “private ownership of the means of production” and the creation of goods and services for “profit” is creating class warfare in America. Their argument that capitalism is the root cause of class conflict fails the test of logic. The United States of America was founded on the principle of individual freedom through representative democracy. We are a nation of free people — people who have the right to engage in commerce and earn a profit — and we’re free to live our lives as we see fit. Some of us pursue great wealth, fame and fortune; some of us pursue a chair, a back porch and a six-pack. Bill Gates was not born a billionaire. He produced a product that people wanted or needed at a price they were willing to pay. People who fan the flames of class conflict would have us believe that the more money Bill Gates makes, the less money there is for the rest of us. If that logic held true, then how did Bill Gates become a billionaire? Capitalism is not a zero-sum game. That argument is right up there with the nowfamous quote by Charles Duell, former commissioner of the U.S. Patent Office, who in 1899 said, “Everything that can be invented has been invented.”
Simple, basic research will provide you with a definition of every type of social economic system devised by man, and each is a documented failure with the exception of one — capitalism and a representative democracy. Socialism, communism and fascism all are documented failures. Capitalism has increased individual freedom and opportunity far more than any other economic system in history, and, in turn, has provided more people with a higher standard of living. Young people today are taught that a great society is built on a political system that guarantees equality of outcome, rather than an economic system that guarantees equality of opportunity. To an individual who does not understand the basis of individual freedom and capitalism, the difference may seem subtle. In truth, the difference is profound. It is the difference between government control and individual freedom. Noble Prize-winning economist Milton Friedman illustrated this fact brilliantly in his book and TV series, Free to Choose. There are some elite politicians who argue that in order to achieve social justice, they must take from the “haves” and redistribute it to the “have-nots.” It is a new vision for America, one that will provide a guarantee of equal outcomes. What they don’t tell you is that it comes at a very high price — the loss of individual freedom. As Freidman said, “The society that puts equality before freedom will end up with neither. The society that puts freedom before equality will end up with a great measure of both.”
Managing Editor & Senior Writer Communications Specialist Contributing Writers
Yvonne Atkinson-Mishrell Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Jessica McMathis jmcmathis@mbausa.org Andrea Gioia Jim McKibben Tom Pendleton
Feature Photography
Ron Stephens La Mirage Studio 814/835-1041
Photography
Jessica McMathis Karen Torres
Advertising Sales
Design, Production & Printing
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net
ON THE COVER: The second generation of the Hilbert family — brothers Bill Jr., John, and Joseph — have embraced their father’s entrepreneurial spirit and business sense in three diverse operations, including the reinvention and global success of Reddog Industries in Erie. For full story, see page 14. 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 2012 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.
October 2012 > www.mbabizmag.com > 3
Business Buzz COUNCIL TO GOVERNOR: LACK OF TALENTED, HIGHLY EDUCATED WORK FORCE IS TOP CONCERN The 24-member Governor’s Manufacturing Advisory Council (GMAC), whose work was designed to help strengthen the manufacturing sector, recently sent its recommendations to Pennsylvania Governor Tom Corbett and the state Legislature, listing the lack of a talented and highly educated work force as its top concern. In January, Governor Corbett had charged the nonprofit group Team Pennsylvania Foundation to lead the council to “identify and prioritize top issues that can help influence, sustain and advance that sector in the Commonwealth.” Manufacturing adds $75 billion to the state’s economy annually, according to state statistics. Co-chaired by Department of Community and Economic Development Secretary C. Alan Walker and Carlos Cardoso, chairman, president and CEO, Kennametal Inc., Latrobe, the council gathered information about challenges facing the industry from industry experts and manufacturers and compiled its findings over a six-month period beginning in January. The 24-member council consisted of a diverse array of manufacturing interests and companies located throughout the Commonwealth. Local business leaders serving on the council included: Samuel “Pat” Black, president and CEO of Erie Management Group, Erie; David Barensfeld, president and CEO of Ellwood Group Inc., Ellwood City; Jim Rutkowski Jr., vice president of Industrial Sales & Mfg., Erie; Greg Booth, CEO of Zippo Manufacturing Company, Bradford; and Manufacturer & Business Association President Ralph Pontillo, Erie. To read a copy of the full GMAC report, background on the council’s work and a list of council members, visit the Team Pennsylvania Foundation website at www.teampa.com/manufacturingcouncil.
NATIONAL MANUFACTURING DAY SCHEDULED FOR OCTOBER 5 In the spirit of less talk, more results, Manufacturing Day is being championed by dozens of organizations. It will be celebrated on October 5 with plant tours and open houses at as many manufacturers as possible across the country. Studies by the nonprofit Manufacturing Institute and others show that almost 80 percent of Americans believe manufacturing is important to our economic prosperity, standard of living and national security. Yet only 30 percent would encourage their children to go into manufacturing as a career. And, according to Ed Youdell, president and CEO of the Fabricators and Manufacturing Association (FMA), “October 5 is dedicated to celebrating the great work and innovation of the 12 million men and women who make the United States the world’s largest manufacturing economy.”
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DEPARTMENTS > Contact: Jessica McMathis
High schools, colleges, local chambers of commerce, unions, trade associations, government entities, and manufacturers
are urged to work together to propel U.S. manufacturing to the next level.
To learn how your business can get involved, visit www.mfgday.com.
FMC TECHNOLOGIES, PENN STATE BEHREND DEDICATE ENGINEERING DESIGN CENTER A $500,000 expansion at FMC Technologies Measurement Solutions, an Erie-based manufacturer of precision metering products for the oil and gas industry, will provide hands-on job training — and job offers — to engineering students at Penn State Erie, The Behrend College. The new, 2,000-square-foot engineering Design Center will boost the Erie division’s role in FMC Technologies’ global subsea engineering work. When fully staffed, the center will employ 12 student interns from Penn State Behrend. Students will spend 20 hours each week at FMC Technologies, with the option of working full-time during the summers. The center builds on a 10-year partnership between FMC Technologies and Penn State Behrend, during which time the college has provided 30 interns to FMC Technologies’ engineering department. Seventeen went on to accept full-time positions at the company after graduation.
From left: Dr. Ralph Ford, director of the School of Engineering at Penn State Behrend; Dr. Donald Birx, chancellor of Penn State Behrend; Brad Beitler, vice president of technology, FMC Technologies; John Gremp, chairman and CEO of FMC Technologies; and Dale Sumpter, president of FMC Technologies Measurement Solutions.
FMC Technologies, which is experiencing unprecedented growth, expects to hire approximately 8,000 people at its global sites over the next five years. The engineering Design Center will funnel local talent into that jobs pipeline. “This partnership with FMC Technologies is a progressive model of collaboration between industry and academia,” said Dr. Ralph Ford, director of the School of Engineering at Penn State Behrend. “It will provide invaluable practical experience and professional growth for our students, preparing them well to compete globally.” For more information, visit www.fmctechnologies.com or behrend.psu.edu.
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October 2012 > www.mbabizmag.com > 5
WHAT’S YOUR GOAL? Just like your favorite team has goals, you too have goals for your business. No matter how far you are from the end zone, you’ll need a plan — an expert playbook to get you there. That’s where Schaffner, Knight, Minnaugh & Company, P.C. comes in. Whether your goal is to expand, create a succession plan, or anything in between, we’ll be coaching from the sidelines to make sure you call the right plays. Our expertise in accounting, auditing, tax consulting and compliance, estate and succession planning, business consulting, business valuation, litigation support and small business services means you’ll have an all-star team on the field for every play.
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Health Matters
EDITORIAL > By Andrea Gioia
Value-Based Networks Viewed as Viable Option to Help Contain Health-Care Costs Employers looking to reduce healthcare costs and lower premiums for their employees have considered many options available to them from health insurers in recent years. One such option that has been around for some time, but is becoming increasingly popular is the concept of “value-based” networks for providers. Value-based networks are also known as “select” or “tiered” networks. Value-based networks are an attempt by insurers and employers to contain costs by encouraging employees to utilize more efficient providers — meaning hospitals or physicians — by either streamlining networks, or by lowering co-payments or deductibles for providers in different tiers in the network. The health insurer determines which tier the providers fall into based on certain criteria. These criteria can include the cost of care, the efficiency of the care they deliver, as well as the quality of care provided.
the area of prescription drug coverage where generic drugs are on one tier while brand name drugs are on a tier that requires a higher co-payment. An additional tier contains “non-preferred” or “non-formulary” drugs that require an even higher payment.
As cost and quality information becomes more available to consumers of health care, the more likely it will be that consumers will base their healthcare decisions on this information. This has the potential to drive change in health care in a positive direction.
Why Value-Based Networks Are Increasing in Popularity • Increased choice. Value-based provider networks allow employers and insurers to include all or most providers in their plans, as opposed to the limited choices historically provided by HMOs.
Plans that include fewer providers are more likely to appeal to consumers shopping for their own budgetconscious coverage since they may only need to check the availability of their own providers, rather than the whole network.
• More engaged consumers. Being exposed to higher out-of-pocket expenses gives employees more of an incentive to be involved in choosing providers and treatment and in determining value in health care.
(See this month’s Financial Adviser article on page 11 for information on how to assess narrow networks for your organization.)
• Competitiveness. Value-based networks could motivate some providers to cut costs in order to stay off higher-priced tiers.
When services at a certain provider cost an insurer less, those savings can be passed directly to the consumer in the form of a lower cost-share requirement.
• Lower prices. Estimates indicate that tiered products, on average, are priced at 10 percent to 15 percent lower than non-tiered PPO and HMO products.
Value-based networks were created in response to demand from employers and consumers that costs come down along with premiums. These products are also a response to the need for more consumer-driven options.
The Potential of Value-Based Networks One of the goals of a value-based network is to engage consumers in making informed decisions about their health care. A value-based network could improve care coordination and management of chronic conditions, as well as foster improved compliance with clinical guidelines. The value-based network provides the framework for that to happen without restricting consumer choice.
The concept of value-based networks is a variation of the long-established practice of health insurers offering one level of benefits to members who use in-network providers and another level of benefits for those who use out-ofnetwork providers. The difference is members can choose the providers they prefer based on the criteria that are most important to them. The tiered concept has been long established in
When a provider’s tier is tied to quality, the potential is there for networks to encourage better value and to ultimately drive providers to perform better and more efficiently.
Persons interested in UPMC Inside Advantage, a value-based network plan for northwest Pennsylvania, priced up to 20 percent lower than non value-based plans, should visit www.upmchealthplan.com/employers/ insideadvantage.html, or call 877-5630292 and speak one-on-one with a UPMC Health Plan sales representative.
Andrea Gioia is executive director for Product Innovation for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Work Partners, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and offer a full range of insurance programs and products.
October 2012 > www.mbabizmag.com > 7
THE NATURAL GAS SOLUTIONS YOUR BUSINESS NEEDS,
THE EXPERTISE IT DESERVES. For more than 20 years, National Fuel Resources, Inc. (NFR) has provided thousands of businesses in Pennsylvania and New York with competitively priced natural gas solutions tailored to specific customer needs.
Layered Pricing Plan—Low risk plus some market fluctuation. A perfect pricing blend allowing a business to lock in volumes while taking advantage of declines in natural gas costs.
We will work with you to identify an appropriate pricing strategy for your business:
Variable Pricing Plan—For a business capable of taking higher risks in a volatile marketplace, there may be advantages as market opportunities arise to convert their variable price to a layered or fixed price at any time.
Fixed Pricing Plan—Ideal for a business that works best with a low risk strategy and within budget constraints.
YOUR NATURAL GAS COST BREAKDOWN NATURAL GAS SUPPLY CHARGE The price for the natural gas itself— this segment makes up the largest portion of your costs.
NATURAL GAS SUPPLY CHARGE
DISTRIBUTION CHARGE The cost the local Utility charges to deliver the natural gas to your business.
DISTRIBUTION CHARGE
73-75%*
25-27%*
*Typical percentage
NFR’s expertise will help provide you with a cost-effective plan for your natural gas supply.
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The following disclaimers are required by PA law (52 Pa. Code § 62.142): NFR is not the same company as National Fuel Gas Distribution Corporation (“NFGDC”). Both NFR and NFGDC are owned by National Fuel Gas Company (NYSE:NFG), a publicly traded company. NFR’s prices are not regulated by the Pennsylvania Public Utility Commission. You do not have to buy natural gas or other products from NFR to receive the same quality of service from NFGDC.
Legal Brief
EDITORIAL > By Tom Pendleton
Understanding and Benefiting From Pennsylvaniaâ&#x20AC;&#x2122;s Natural Gas Boom Pennsylvania continues to experience an increasing amount of natural gas drilling activity. As the focus of these efforts shifts from the Marcellus Shale to other shale formations such as the Utica Shale, areas of Pennsylvania that missed out on the Marcellus gas boom, such as the northwest part of the state, are now receiving increasing attention from drillers. This increased natural gas drilling activity presents opportunities and challenges to landowners, business owners and those who want to efficiently pass assets related to oil and gas drilling to future generations. This article summarizes some of the legal issues faced by each of these groups. Landowner Issues Oil and gas leases are complicated binding contracts that use terminology unique to this industry. Signing an oil and gas lease can involve issues ranging from income taxes related to the upfront bonus payment and periodic royalty payments; environmental issues, such as water quality and erosion control; and real estate property taxes related to programs such as the Clean and Green Program. These issues can become more complicated if one person owns the mineral rights and a separate person owns the surface rights. Considerations for Business Owners The shale gas and deep conventional wells currently being drilled comprise industrial operations covering several acres in size. These wells offer businesses the opportunity to sign contracts for activities
involving the sale of steel, concrete and other equipment; disposal of water; and other matters. Because of their complexity, however, these business opportunities come with a substantial amount of risk. Therefore, businesses that sign contracts covering goods and services provided at natural gas well drilling sites should carefully review provisions that limit liability, create warranties and require one party to indemnify the other in the event of loss. Although many people consider these provisions to be the â&#x20AC;&#x153;boiler plateâ&#x20AC;? in a contract, they could have serious consequences if they are not drafted properly or if the party signing the contract does not understand what they mean. Estate Planning Considerations Because shale gas leases can provide for bonus payments of several thousand dollars per acre and a substantial stream of royalty payments once production begins, at least in the early years of the well, owners of mineral rights can experience a substantial increase in income. As with any situation that generates wealth, passing that wealth onto future generations creates potential gift tax and estate tax issues. With proper planning, these tax issues can be minimized, or at least planned for, so that the resulting tax liability does not create a financial hardship for the family. In some situations, it makes sense to create a limited liability company to hold the mineral rights so that they can be distributed and effectively managed.
Likewise, mineral rights can be gifted to future generations of family members in ways that reduce taxation. Alternatively, older family members can use the proceeds of royalty payments to pay college expenses of grandchildren as well as nieces and nephews in order to share the benefits of the natural gas found underneath their property. Conclusion The situation confronting each family or business will be different. Therefore, it is important to discuss your particular situation with an experienced professional who can address each of the unique legal and financial situations involved. Addressing the risks ahead of time can eliminate surprises and reduce the resulting tax burden. For further information, contact Tom Pendleton at MacDonald, Illig, Jones & Britton LLP at 814/870-7756 or tpendleton@mijb.com.
Thomas A. Pendleton is a partner with MacDonald, Illig, Jones & Britton LLP and has been representing businesses, nonprofit corporations and individuals in a wide variety of legal matters for more than 15 years. He is a graduate of the Vanderbilt University School of Law.
October 2012 > www.mbabizmag.com > 9
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EDITORIAL > By Jim McKibben, CLU
Financial Adviser Assessing Narrow Networks: What Employers Need to Ask When confronting health plan costs that are rising too fast, employers and their brokers have employed a variety of tools — adjusting benefits, changing employee contributions, adopting consumer driven plans, implementing wellness programs, and, most importantly (particularly over the last two years), aggressively shopping the market to encourage competition among insurance carriers. Each employer has to determine the extent and effectiveness of each particular option. Now another tool is available, as discussed in this month’s Health Matters article (see page 7), known as Narrow Networks. Narrow Networks, also called Tiered Networks, Tailored Networks and High Performance Networks, provide traditional levels of coverage but only for a narrower or reduced number of hospitals, physicians and other providers. Access is still available to other providers, but at higher costs in the form of deductibles and co-insurance. Two major health plans have introduced Narrow Network products in northwestern Pennsylvania during 2012 and you should expect to see them at renewal time along with your traditional plan. Early numbers indicate that the price advantage of a
Narrow Network plan will be approximately 15 percent lower than a traditional Open Access PPO plan. This represents a significant amount of money and will certainly capture the interest of many employers. Is a Narrow Network Plan the Right Answer for Your Employees? For an employer to determine the viability of a Narrow Network Plan for their employees, they will need to assess the following: • Which insurance company’s Narrow Network plan do I offer? Am I comfortable as to the quality of medical care and access to providers within each network? Note: This is not a question employers in western Pennsylvania previously had to answer. • To what extent will I experience pushback from my employees? A certain portion of the work force will experience disruption in their medical care. If the hospitals and physicians they and their family have traditionally seen are not included in the Narrow Network, how will they respond? • If my company adopts a Narrow Network plan, how will the premium savings be treated? Will all of it be captured at the company level to offset health plan costs? Or will it be
necessary to pass some portion of the savings on to employees to offset any negative feelings they might have as a result of disruption of their provider networks? The health insurance marketplace is continuing to change rapidly. We will have to wait for the results of November’s general election to know the ultimate form of the Patient Protection and Affordable Care Act. For most employers, health insurance costs continue to be one of the largest and fastest-growing items on their budget. It will take ever-increasing skills for employers to manage these challenges effectively. For more information, please contact Jim McKibben at Lillis, McKibben, Bongiovanni & Co. at 814/452-4085 Ext. 231 or jim.mckibben@lmbcoerie.com. Jim McKibben is a partner at Lillis, McKibben, Bongiovanni & Co., an Erie-based group benefits firm. He is a member of the Society of Financial Service Professionals and National Association of Insurance and Financial Advisors-PA.
October 2012 > www.mbabizmag.com > 11
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From left to right: Scott Gezymalla, Andrew Lincoln and Jeremy Lincoln
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Family Effort Molds Manufacturer’s Reinvention, Global Success For nearly half a century, the Hilbert name has been synonymous with success in manufacturing. Bill Hilbert Sr. laid the foundation as an apprentice tool-and-die maker turned businessman, who in 1971 became a partner in ownership of Rite Precision Co. that would after several years come to be known as Reddog Industries. Bill Sr. eventually went on to become a founding partner of PHB Inc. when Parker White Metal was acquired — companies of which he is the current chairman and CEO. Today, the second generation of the Hilbert family — brothers Bill Jr., John, and Joseph — have embraced their father’s entrepreneurial spirit and business sense in three diverse operations. Bill Hilbert Jr. is president of Erie-based Reddog Industries, a global provider of tooling and specialized machining, while John serves as president of the Fairview-based PHB, a complete manufacturing resource of high quality parts for the nation’s OEMs. Youngest brother Joseph is president and owner of Pulakos Chocolates, Inc., a venerable institution in northwest Pennsylvania’s candy making industry. “Our success is due to unconditional trust and maintaining the highest levels of professional integrity,” explains John. “Our parents taught us that family is everything, and you always have each other’s back.”
Reddog Industries is widely recognized for its tool-and-die expertise, supplying high pressure plastic injection molds and high quality aluminum die-cast dies used to produce a variety of consumer and commercial products. The 100,000-square-foot facility in Erie (shown above) utilizes state-of-the-art machining centers to provide uncompromising quality, as well as access to a team of engineers with significant experience in product design, injection mold and die-cast die design, and specialized machining applications.
of every critical decision allowed me to enjoy considerable success.” According to Bill Jr., there is no harder job on earth than working for your father. “The success we encountered going forward was a true team effort. My brothers and I led by the example my parents set, and rarely disagreed about decisions regarding the business,” he says. “We shared a unique ability to trust each other’s decisions and give one another room to grow and be successful in our own way.” Consequently, it is this vision and commitment — and family effort — that have fueled the evolution and reinvention of the Hilbert’s longtime company Reddog Industries.
Time for a Change
Throughout most of its history, Reddog, located on Erie’s east side, was largely known for its tool-and-die expertise, supplying high pressure plastic injection molds and high quality aluminum die-cast dies used by a long list of Fortune 500 companies. These molds and dies produce anything from housewares and storage products, power tools and accessories, sporting goods, toys, safety equipment, electronic and electrical products, to automotive and transportation components, telecommunication products, medical devices, and military and aerospace components.
Brothers Bill and John worked together at Reddog for 25 years before John migrated to lead the family’s manufacturing effort at PHB; Joseph worked with his brothers at Reddog for 17 years, serving as vice president of purchasing where he not only assisted with implementing the company’s ambitious expansion plan, upgrading systems and instituting a new contract buying program, but also gained the training he needed to tackle his new venture at Pulakos.
However, as manufacturers like Steris and International Paper closed or moved away and globalization took customers to places like Asia and India, the Hilberts turned their attention to keeping Reddog relevant and competitive in the global marketplace.
“The things that I learned while at Reddog cannot be taught in the classroom,” states Joseph. “Hands-on experience and my family’s support
Through numerous capital improvements and innovative manufacturing techniques, what has emerged is a 100,000-square-foot operation that is
14 < www.mbabizmag.com < October 2012
“We realized the need for a significant change,” says Bill Jr. “We had to reinvent the company to maintain a healthy existence.”
Ries spotting presses assure mold and die-parting line integrity before validation begins in the injection-molding machine or die-casting press. Many customers would have to travel more than 300 miles to locate the resources of Reddog’s lift capacity and machine capability.
more than a mere tool-and-die company, but a world leader in the design and production of a vast array of tooling applications. Bill Jr. goes on to explain that, “Over the past 12 years we have been able to position ourselves strategically to have the capability to service even more effectively the plastics industry, die-cast industry and most recently — and now a very significant piece of what we do — specialized machining.”
Becoming Globally Competitive
A key component to becoming globally competitive was the adaptation of lean principles. Reddog strategically downsized and developed a multitasking philosophy that led to greater manufacturing efficiency. This increased utilization of manufacturing assets allowed for significantly improved lead times. “A quick delivery combined with a reputation of impeccable quality,” notes Bill Jr., “is key to winning the order.” Flexibility and 24/7 service have been vital to Reddog’s success. According to the company, Reddog achieves high quality and shorter lead times by having the ability to control every part of the manufacturing process from design to production. The company’s in-house engineering team works hand in hand with the production team to customize orders for their worldwide clients. “We are a combination of engineering and manufacturing,” says Bill Jr. “Our ability to service customers unconditionally and offer aggressive lead times is the direct result of an excellent staff.” Reddog not only offers onsite manufacturing capabilities but also connects to local and regional manufacturing resources that assist with offering customers a more economical solution. “The key to success is the willingness to reinvent your company,” adds Bill Hilbert Jr. “A clear >
About: The 100,000-square-foot facility is more than a tool-and-die company, but a world leader in the design and production of a vast array of tooling applications as well as specialized machining services. Headquartered: 2012 East 33rd Street in Erie, Pennsylvania History: Began as Rite Precision Co. in 1971 and evolved into Reddog Industries / A Hilbert Company. Complete tooling services include: product design, plastic injection mold and die-cast die design and construction, mold and die revision and repair, specialized machining. Markets served: consumer and commercial appliances, electronic / electrical products, automotive and transportation components, industrial and nuclear flow control devices, telecommunications, medical devices, and military and aerospace components, consumer packaging and storage products, beverage bottling industry, power tools and accessories, sporting goods and recreational products, lawn and garden products, and toys and safety equipment. Industry Recognition: Ranks among the 25 largest manufacturers in its respective market. Website: www.reddog-erie.com Phone: 814/898-4321 Fax: 814/899-5671 Email: wmh2@reddog-erie.com October 2012 > www.mbabizmag.com > 15
Reddog’s experienced machining specialists use cutting-edge programming software and machine tools to provide customers with the highest quality, on-time injection molds, diecast dies, and custom machined products.
understanding of local, regional, and global opportunities is necessary to compete in today’s economy.” In doing so, Reddog continues to respond to the changing demands of the plastics and die-casting industries. According to the company, one of the most dynamic services that Reddog offers is its repair and revision service, offering quick turnaround repair and revision of injection molds and die-cast dies. “The goal of our customers is to get existing tooling running efficiently and productively for as long as possible, which requires constant preventive maintenance,” notes Bill Jr.
Specialized Machining Services
As part of its diversification strategy, Reddog also has aggressively marketed its services beyond plastics and die casting by strategically expanding into other areas of manufacturing. Specifically, this involves tooling and specialized machining for contract manufacturers that includes high pressure valves, nuclear components, large gearing and mechanical drives, custom fixtures and large plate machining — components that can weigh up to 15,000 pounds. “What we needed to do was prove ourselves to these new customers,” Bill Jr. explains. “In most cases, the companies we approached had to travel much further to find a company that could provide the same service, and we could do it more cost effectively.” Reddog’s sheer size, lift capacity and machine capability — comprised of high-speed machining centers, state-of-the-art CNC sinker EDM machines and extensive engineering expertise — set it apart from its competitors. “Many companies cannot supply the wide range of services that we have available; we have the ability to service projects from the very simple and small to the extremely large and complicated,” adds Bill Jr. “You have to travel a great distance to find a company with our resources. We are able to provide a vast array of manufacturing solutions locally, which allows our customers to reduce costs and easily interact with us as their subcontractor. This not only provides comfort for their engineers but also creates a great relationship between them and us.”
A Team Effort
Diversification has been key to Reddog’s success, but so too are the people who come to work every day to make certain that the company meets every customer’s expectations. “Our employees like what they are doing and they understand that we appreciate their very significant contributions every day,” says Bill Jr. “We have created an environment that is easy to work in, but is extremely demanding in that each and every person understands that he or she is playing a key role in a series of events that will occur over a few days, weeks or even months and ultimately end in the completion of a large project.” Bill Jr. goes on to explain that, "Every employee is like a link in a chain; everyone has to do his or her part. It has to be right, on-time, and the quality has to be excellent.” It’s this unified effort — from the company’s family leadership to longtime staff and journeymen tool-and-die makers, technology and exceptional services — that has made Reddog an integral part of local and regional commerce, bringing the global economy to Erie on a daily basis. “The willingness to embrace the global economy and make it drive our success has been key to our survival,” says Bill Jr. “In doing so, we have been able to strategically right-size and improve our manufacturing efficiency.” The result is a reinvented Reddog at its best. To learn more about Reddog Industries, visit www.reddog-erie.com. 16 < www.mbabizmag.com < October 2012
A “DESIGNATED DRIVER” FOR YOUR ROTATING EQUIPMENT
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WeWe specialize specialize in in the the manufacture manufacture ofof high-performance high-performance tungsten tungsten carbide carbide and and ceramic ceramicinserts insertsasaswell wellasasinnovative innovativetooltoolholding holdingsystems. systems. From Fromour ourheadquarters headquarters in inSaegertown, Saegertown,Pennsylvania Pennsylvaniaand anda afacility facility in inNorth NorthCarolina, Carolina,Greenleaf Greenleafproudly proudlyoffers offers American-made American-made products products in in over over 6060 countries countries worldwide. worldwide. Most Mostreasonable reasonablebuyers buyerswould wouldagree agreethat thatbuying buyinglocally locallyis isa a good good idea idea and and shows shows good good social social conscious. conscious. However, However, when when you you can can also also purchase purchase the the very very best best tooling tooling solutions solutions and and customer customer support support forfor your your metal-machining metal-machining needs, needs, then then it truly it truly becomes becomes aa win-win win-win situation situation forfor everyone everyone involved. involved. Application-specific, Application-specific, custom-designed custom-designed tooling tooling is aishallmark a hallmark ofof the the Greenleaf Greenleaf product product line. line.AsAs machining machining demands demands change change moving moving into intothe thefuture, future,weweareareprepared preparedtotooffer offeroriginal, original,specialized specialized engineering engineering and and unparalleled unparalleled customer customer support support in in the the field. field. WeWe provide provide these these services services at at home home and and abroad. abroad. Greenleaf Greenleafpioneered pioneeredand andperfected perfectedwhisker-reinforced whisker-reinforcedceramic ceramic technology, technology,which whichrevolutionized revolutionizedthe theworld worldofofjetjetengine engine manufacturing. manufacturing. Greenleaf’s Greenleaf’sadvanced advancedceramic ceramicinserts insertsareare found found allall over over the the world world taking taking onon the the hardest hardest materials materials in in the the toughest toughest cutting cutting applications. applications.Greenleaf Greenleaf has has followed followed upup onon that that foundation foundation with with success success after after success, success, driven driven byby the the desire desire toto bebe among among the the world’s world’s best best providers providers ofof metal-cutting metal-cutting solutions. solutions. So,So, the the next next time time you you areare looking looking forfor a metal-cutting a metal-cutting solution solution and and great great customer customer support, support, remember remember that that the the very very best best your your money money can can buy buy is in is in your your own own backyard backyard - at- at Greenleaf Greenleaf Corporation! Corporation!
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Company Name: American Turned Products Address: 7626 Klier Drive, Fairview, PA 16415 Phone: 814/474-4200 Website: www.atpteam.com President: Gerald B. Eighmy Founded: 1984 Number of Employees: 125 Industries Served: Automotive, fluid power, electric and gas Specializes in: Contract precision CNC and rotary transfer machining of ferrous and non-ferrous metals.
Company Name: Matric Address: 2099 Hill City Road, Seneca, PA 16346 Phone: 814/677-0716 Website: www.matric.com President: Richard E. Turner, Jr. Founded: 1971 Number of Employees: 285 Industries Served: Energy, industrial controls, medical devices, communications, aerospace, transportation and heavy machinery Specializes in: Electronic contract manufacturing services (PCB to full turnkey), engineering design, aftermarket service, cable assembly (including overmold), and electromechanical assembly (box build).
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Company name: Beacon Lubricants Address: 11170 Edinboro Road Edinboro, PA 16412 Phone: 814/734-7535 Website: sales@beaconlubricants.com President: Patrick M. Huntley Founded: 1995 Number of Employees: Seven Industries Served: Industrial, commercial, automotive Specializes in: Manufacturer of industrial oils, metal working fluids, automotive lubricants and greases. All products are available in various industry sizes.
Company Name: Solar Atmospheres of Western PA Address: 30 Industrial Road, Hermitage, PA 16148 Phone: 724/982-0660 Website: www.solaratm.com President: Robert Hill Founded: 2001 Number of Employees: 45 Industries served: Aerospace, medical, power generation and many more Specializes in: Vacuum heat treating of large, mainly titanium, manufacturing parts. Furnaces up to 36 feet long, 10-20 bar quenching, Fluorescent Penetrant Inspection. ISO9001 / AS9100, Nadcap, SHARP, ITAR. October 2012 > www.mbabizmag.com > 19
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CO M PA N Y P R O F I L E 70 Years of Excellence in Serving the Storage Rack Market
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.
John B. Pellegrino Sr., P.E.
President and CEO 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 its 70th year of serving the storage rack market, Ridg-U-Rak is commonly acknowledged as a company built on Integrity and Service, guided by the able leadership of its president and CEO, John B. Pellegrino Sr., P.E.
Capabilities Ridg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with a production capacity of more than 100,000,000 pounds of finished steel products per year. It remains one of the largest storageage rack rack manufacturers manufacturers in North in North America America and and is still is still a family a family owned owned business. business. One One of the of the keykey contributors contributors to to thethe company’s company’s success success hashas been been thethe increased 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 revamping, 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 pro- grams 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 Narrow-Aisle and and Deep-Reach Deep-Reach systems, systems, design design engineers engineers cancan laylay outout storage 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, and offers replacement parts that interchange change with with competitive competitive racks. racks. Many Many specialty specialty storage storage options options areare available, available, including a rack-supported crane system to store large dies and tools.
Ridg-U-Rak 120 South Lake Street North East, PA 16428 814/725-8751 or Toll-Free 866/479-7225 www.ridgurak.com
Seismic Base Isolation System Warehouse storage racks have proven to be particularly vulnerable to earthquake damage, and new FEMA guidelines mandate rack structure integrity during a moderate to severe earthquake. Ridg-U-Rak took a quantum leap in the design of storage racks for earthquake-prone areas when it developed and patented the Seismic Base Isolation System, a design that will resist rack damage and product spillage through through thethe most most powerful powerful anticipated anticipated earthquake earthquake that that thethe country country willwill ever ever experience. Because of this innovated work, Ridg-U-Rak received the Excellence for Innovation award by the National Earthquake Conference. October June2012 2012>>www.mbabizmag.com www.mbabizmag.com>>21 5
HR Connection MOST MANUFACTURING WORKERS EARN HIGHER WAGES, BENEFITS The U.S. Commerce Department’s Economic and Statistics Administration recently released a report that compared salaries and benefits between workers in the manufacturing and nonmanufacturing sectors. Those within the manufacturing industry are compensated an estimated 17-percent higher than the average nonmanufacturing employees. “Manufacturing employment means higher wages and important benefits for Americans and their families,” explained Commerce Secretary John Bryson in a press release. “This report reaffirms that manufacturing is a matter of fundamental importance to our
22 < www.mbabizmag.com < October 2012
country’s economic strength, so we must do everything we can to continue to build an overall environment where U.S. manufacturing can flourish.” Manufacturing salaries were typically higher because workers in the industry typically required a higher level of mathematical, scientific, technical and engineering expertise, said the report. The report also holds relevance for facility managers that service the manufacturing industry, as many of these professionals have been tasked with conducting the maintenance and building management for a growing sector. SURVEY: NO LET-UP IN GLOBAL SKILLS GAP The global skills shortage shows no
signs of improving, with more than one-third of companies around the world reporting difficulties filling open positions because of a lack of talent, according to a survey by ManpowerGroup, the recruitment company. Overall, 34 percent of companies said they were finding it hard to fill open positions. That is the same figure as last year, which put the “skills gap” at its highest level since 2008. Skilled trades workers were the hardest to find, followed by engineers and sales representatives. The issue is a longstanding complaint of U.S. employers. The number of unfilled job openings has been rising steadily since mid2009, according to the U.S. Bureau of Labor Statistics.
DEPARTMENTS > Contact: Stacey Bruce
New Health-Care Law Provisions Impacting Employer Benefit Plans Very soon employers need to take heed to the rules and regulations laid out in the Patient Protection and Affordable Care Act (PPACA). Here are a few highlights of what the future holds: The uniform Summary of Benefits and Coverage (SBC) rule becomes effective with the first open enrollment period beginning on or after September 23, 2012 or January 1, 2013 for calendar year plans. This is required for all health plans sponsored by small or large employers. A “four” page standardized summary of health benefits is required to be able to be used by participants to understand and compare their options. This SBC may be delivered by mail or electronically. For most fully insured plans, the summary will be provided by the insurer. For self-insured plans, the Plan Administrator is responsible for the SBC preparation and distribution.
Many employers will need to provide informational reporting of the aggregate cost of employer-sponsored health coverage for each employee. This will happen with the 2012 Forms W-2 that will be issued in January 2013. This provision does not apply to employers issuing fewer than 250 Forms W-2. In addition, Medical Loss Ratio (MLR) rebates have started. Insurers were required to pay 2011 rebates by August 2012. This MLR provision requires insurers to spend a minimum percentage of premiums on medical claims and improving health quality. The percentages are as follows: 85 percent for large group markets (more than 50 employees) and 80 percent for small and individual group markets. Effective for plan years beginning on or after January 1, 2013, health flexible spending account (FSA) employee salary reduction contributions will
be limited to $2,500. Also preventive services for women must be covered without cost-sharing effective for plan years that began on or after August 1, 2012. These are just a few of the rules and regulations that companies are facing with the advent of enforcement of additional provisions of the PPACA. Watch for seminars and briefings on this subject and similar topics at www.mbausa.org.
Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.
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October 2012 > www.mbabizmag.com > 23
OntheHill
2012 Congressional
On November 6, Pennsylvania voters will decide w respective districts for a two-year term in the U.S determine the best choice for office, the Manufa asked the candidates in Congressional Districts 3, membership area — what they would do to impr if elected. Their responses are below. For the late Association’s Government Affairs homepage at w
3rd District
Pennsylvania’s 3rd District is located in the northwestern part of the state and includes the cities of Erie, Sharon, Hermitage, Butler and Meadville. Mike Kelly – R Incumbent “I decided to run for Congress because, as a small businessman, I saw firsthand how the wayward policies of Washington were negatively affecting Main Street America. I am proud that the Republican-led House has passed measures to cut taxes and eliminate the onerous regulations we place on our job creators. We have taken the important steps and it is imperative the Senate and the president follow our lead and light the American spirit of entrepreneurship.”
Missa Eaton – D Challenger “I am well aware of the bleak business climate many small business owners and corporations are facing in the Commonwealth of Pennsylvania. A recent study used by the Pennsylvania Business Journal has given the Commonwealth an average grade of ‘C.’ I will not allow Pennsylvania to be seen as an average economic climate. In office, I will work to improve private and public sector relationships, increase tax incentives, and work to improve infrastructure.”
12th District
Located in southwestern Pennsylvania, the 12th District consists of all of Greene County, and parts of Allegheny, Armstrong, Cambria, Fayette, Indiana, Somerset, Washington, and Westmoreland counties.
Keith Rofthus – R Challenger “We must make Pennsylvania the most competitive place in the world to do business by reducing unreasonable regulations, simplifying our complicated tax code, decreasing our national debt, and repealing unwanted legislation like Obamacare that has acted as a wet blanket on our economy. We must utilize our great energy resources and invest in and strengthen our infrastructure. The Obama/Critz economy is about empowering D.C. bureaucrats, but we must empower our job creators here in Pennsylvania.”
24 < www.mbabizmag.com < October 2012
Mark Critz – D Incumbent “Creating jobs and growing the economy is my top priority. To stay competitive, we must widen the flow of commerce, invest in domestic energy production, strengthen our infrastructure, and ensure that we have the world’s best trained work force. As a Member of the House ‘Make It in America Task Force,’ I am working hard to cultivate an environment for more businesses to make products here in America, because when they do, we all win.”
DEPARTMENTS > Contact: Lori Joint
Election
who will represent them in their S. House of Representatives. To help acturer & Business Association recently , 5, 10 and 12 — the Association’s rove Pennsylvania's business climate, est election coverage, visit the www.mba-ga.org.
10th District
Pennsylvania's 10th District is the third-largest congressional district in the state. The district encompasses the following counties and areas: Bradford and Lackawanna counties (excluding Old Forge, Moosic, Scranton, and Dunmore but including Clarks Summit), Luzerne County (Back Mountain area including Dallas, Shavertown, Trucksville, Kingston, Wyoming, and Swoyersville), Lycoming County (Sullivan/Columbia/Montour County boundaries west to the West Branch of the Susquehanna River, except Montoursville, north to Cogan House), Montour, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Ward, Union, Wayne and Wyoming counties.
Tom Marino – R Incumbent
Phil Scollo – D Challenger
“With the highest corporate tax rate in the world, we need comprehensive tax reform that lowers overall rates while eliminating special interest loopholes and deductions. Also, we must redouble our efforts to repeal Obamacare, which stifles businesses with regulations, includes tax hikes of $675 billion, and will cost an estimated 700,000 jobs. Finally, we need to enact an all-of-the-above energy policy that will increase domestic production, develop alternative energy sources, and lower energy costs, creating a better climate for small businesses and a better future for all Americans.”
“I’m a businessman, not a politician. I’ve run a management consulting firm out of Pike County for the past decade and a half. We need to work across party lines to create a simpler environment for doing business here. I’ll make it my priority to remove burdensome regulations which impact business growth and I’ll work with Republicans and Democrats to create a Made in America tax break to help keep manufacturing jobs here.”
Glenn Thompson – R Incumbent
Charles Dumas – D Challenger
5th District
Pennsylvania’s 5th District is located in north central Pennsylvania and includes all or part of the following 17 counties: Cameron, Centre, Clarion, Clearfield (all but the southwest corner), Clinton, Crawford (eastern corner), Elk, Forest, Jefferson, Juniata, Lycoming (western half), McKean, Mifflin, Potter, Tioga (all but Ward Township), Warren (southern and eastern half), and Venango (all but the southern third).
“Government has never created sustainable jobs, but certainly impacts the confidence of business owners through excessive taxes, over-regulation and flawed energy policy that escalates prices. I have co-sponsored legislation addressing these issues. I have led to reduce regulatory burdens that cost over $10,000 per employee annually. I will continue the fight to simplify the current tax code, defeat the proposed $3.8-trillion tax increase and expand access to domestic affordable and reliable energy sources.”
“Pennsylvania is the most rural state in America. Outside of its major cities, it has an outdated, transportation structure. I would work toward developing light rail networks, which would allow workers better access to the commercial and industrial hubs. In addition to immediately creating needed jobs to build such an infrastructure, it would also allow workers better opportunity to live in the less congested parts of the state while commuting to more efficient industrial centers.”
October 2012 > www.mbabizmag.com > 25
HR Q&A WHEN DO I HAVE TO REVERIFY OR UPDATE EMPLOYMENT AUTHORIZATION FOR REHIRED EMPLOYEES ON THE FORM I-9? If you rehire an employee within three years of his or her original hire date and you have previously completed Form I-9 for that employee, you may complete a new Form I-9 or you may be able to rely on the previously completed Form I-9 in certain circumstances. Inspect the previously completed Form I-9 and: 1. If the employeeâ&#x20AC;&#x2122;s previously completed Form I-9 indicates that the individual is still eligible to work, you are not required to complete a new Form I-9 but may rely on the previously completed Form I-9 to meet the verification requirements for this employee. You must update the previously completed Form I-9 in Section 3 with the date of rehire; or
2. If you determine that the employeeâ&#x20AC;&#x2122;s employment authorization has expired, you must reverify employment authorization in Section 3 of the previously completed Form I-9, or use a new Form I-9 if Section 3 has been used already. Note: You must complete a new Form I-9 if the version of the form you used for the previous verification is no longer valid. Please check www.uscis. gov/i-9 for the currently valid Form(s) I-9 or contact the Association at 814/833-3200 or 800/815-2660. WHEN I REVIEW AN EMPLOYEEâ&#x20AC;&#x2122;S IDENTITY AND EMPLOYMENT AUTHORIZATION DOCUMENTS, SHOULD I MAKE COPIES? If you participate in E-Verify and the employee presents a document used as part of Photo Matching, currently the U.S. passport and passport card,
Permanent Resident Card (Form I-551) and the Employment Authorization Document (Form I-766), you must retain a photocopy of the document he or she presents. Other documents may be added to Photo Matching in the future. If you do not participate in E-Verify, you are not required to make photocopies of the documents. HOW DO I CORRECT A MISTAKE ON AN EMPLOYEEâ&#x20AC;&#x2122;S FORM I-9? The best way to correct Form I-9 is to put a line through the portions of the form that contain incorrect information and then enter the correct information. Initial and date your correction. If you previously made changes on Form I-9 in Wite-Out, the United States Center for Immigration Services recommends that you attach a note to the corrected Form I-9 explaining what happened. Be sure to sign and date the note.
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26 < www.mbabizmag.com < October 2012
DEPARTMENTS > Contact: Stacey Bruce
E-Verify: Who Should Comply and Why? E-Verify is a free, Internet-based system operated by the Department of Homeland Security (DHS) and the Social Security Administration. This program allows employers to verify the employment eligibility of newly hired employees by entering employee-provided identity and work eligibility information online.
make sure that an employeeâ&#x20AC;&#x2122;s Form I-9 is filled out correctly, and that it is properly signed and dated before they attempt to use the E-Verify system.
The use of the E-Verify system is voluntary for most employers, and any employer in the 50 states, the District of Columbia, Puerto Rico, Guam, or the U.S. Virgin Islands may use the system as long as the employer agrees to the rules of the program.
As you may know, as of September 8, 2009, all federal government contractors were required to use E-Verify. This requirement is meant to ensure that the federal government only does business with companies that have a legal work force. The new rule applies to all newly hired employees as well as current employees, and companies awarded a new contract must enroll in E-Verify within 30 days of the contract award date.
Employers who participate in the program must use it to verify all new employees regardless of national origin or citizenship status. Since the E-Verify system utilizes information provided by employees in Sections 1 and 2 of the Form I-9, E-Verify employers should
Qualifying contracts are those with a contract length longer than 120 days and a value above $100,000. Such contracts will include a clause committing the contractor to use E-Verify. Such a clause also will be required in subcontracts more than $3,000. Though the
requirement to use E-Verify will mainly affect new contracts entered into on or after September 8, 2009, previously established contracts that are modified also may contain this clause. The Manufacturer & Business Association will be hosting an E-Verify and I-9 webinar conducted by the Department of Homeland Security on November 7. For details, visit the HR homepage on www.mbausa.org.
Stacey Bruce is a PHR-certified HR generalist and Human Resource supervisor at the Manufacturer & Business Association.
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THE WARREN COMPANY 2201 Loveland Avenue Erie, PA 16506 Phone: 814/838-8681 Website: www.thewarrencompany.com Metals service center and custom fabricator
October 2012 > www.mbabizmag.com > 27
Events
2012 Fall Training Graduates
The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 100 graduates of its professional development and computer training programs. Visit www.mbabizmag.com for complete coverage.
HR Essential Certification Series – Erie
From left: Association HR specialist Robyn Hopper and Terry D. Amoroso, Corry Forge Company.
HR Essential Certification Series – Erie
From left: Lela Mulligan, I.P. Services Inc.; Richard Clark, Turning Point Chemical Dependency Treatment Center; and Association HR specialist Robyn Hopper.
Blue Ocean Strategy Center
HR Essential Certification Series – Erie From left: Dina Heile, Intellectual Property Services; Laura Revak, C.A. Curtze; Kristie Nosich, Highmark Caring Place; and Association HR specialist Robyn Hopper. Not pictured: Tammy Ricci, Moody and Associates, Inc.
Leadership for Team Leaders – Erie
HR Essential Certification Series – Grove City
Front row, from left: Shelly Wilson, Clarion Students Association, and Angela Bolois, Northeast Industrial Manufacturing, Inc.
Front row, from left: Diana Lander, L’Arche/Erie; Jimmy Biedrzycki, Corry Manufacturing; Jeff Huey, Signal-Tech; Glenn Craig, Ridg-U-Rak, Inc.; Aaron White, Modern Industries; and Randall Ewing, Ridg-U-Rak, Inc.
Back row, from left: Brook Guthrie, Youth Educational Services LLC; Lori Reeves, Reeves Information Technology; Jennifer Preston, Mercer County State Bank; Tiffany L.K. Suorsa, Slippery Rock Veterinary Hospital; Stephanie Moyer, Penn TecQ, Inc.; Julie Rebmann, Center for Community Resources; Janice Rehwald, II-VI Incorporated; Joni Frank, Con Yeager Spice Co./CYS Transportation; and Brian Walters, Pittsburgh Plastics Mfg., Inc.
Back row, from left: Chris Eastman, Corry Manufacturing; Steve Stitzinger, Protective Industries; Kurtis Amy and Lucas Zimmerman, Corry Manufacturing; Steve Pope, Modern Industries; Gary Schermer, Ridg-U-Rak, Inc.; and Mark Husted, Samtec.
Leadership for Team Leaders –Warren From left: Robert Zigler, Whirkey DrinkWorks, Association Training instructor Lisa DeFilippo; and Kristin Eames and Nathan Hughan, Whirley DrinkWorks.
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Leadership for Team Leaders – Warren From left: Robert Gross, Jerry Stuart, Andy Rose and Cale Crocker, Betts Industries.
Lean-Six Sigma – Erie
From left; Joe Popowycz and Darla Musulin, C&J Industries, Inc.; Jan Eric Smith, Jamestown Coating Technologies; and Association instructor Ray Davis.
Certified Supervisory Skills Series – Grove City
Front row, from left: Martin Hanyak, CATTRON; Cynthia Sicilian, Barb Grossman and Colleen Deems, Pine Instruments; David Batley, XALOY; and Brittany Burnett and Brian Zinkham, CATTRON.
Certified Supervisory Skills Series – Warren
Back row, from left: Dan Piontkowski, CATTRON; Melissa Turner, Pine Instruments; and Jennifer Clanch, Greg Ursta, William Weidner and David Bolger, CATTRON.
Back row, from left: Robert Zigler, Whirley DrinkWorks, Jim Berdine, Superior Tire; and Nathan Hughan, Whirley DrinkWorks.
Front row, from left: Dale Jewell, Superior Tire; Mike Hoban, Greg Stenta and Jim Tuley, Betts Industries.
Certified Supervisory Skills Series – Erie Certified Supervisory Skills Series – Grove City Front row, from left: Paul Clegg, Mike Moczan, Mac Graham, Linda Anderson and Warren Hart, Ellwood City Forge.
Back row, from left: Bob Hozick, Aaron Mattison, Denny Anderson, Steve Timko and Dave Stanboro, Ellwood City Forge.
Certified Supervisory Skills Series – Kittanning Front row, from left: Kim Gratteri, Lynn Chromiak, Barb Dudek and Diana Heilman, Drug Plastics. Back row, from left: Association Training Director Dan Monaghan; and Jerry McLaughlin, Mike Byron and Joe Weister, Drug Plastics.
Certified Supervisory Skills Series – Erie
Front row, from left: Lisa Kruszewicz, ACL; Gene Stetson, Acvite Inc.; Peter Greene, Air Born Lake City; and Dustin Adair, AccuSpec. Back row, from left: Christina Houle, Ridg-U-Rak; Gloria Cooley, St. Mary’s Home of Erie East; Daniel McShane, Erie International Airport; Shirley Frye, AccuSpec; and Jose Cruz, Ridg-U-Rak, Inc.
Certified Supervisory Skills Series – Meadville
From left: Mike Davis, Target Precision; Kevin Allen, Howard Bolding, Lou Smeltzer and Jeremy Coblentz, Ainsworth Pet Nutrition; and Tim Phillips and Rick Mong, Time Machine, Inc.
Front row, from left: Kevin Gunter, Ridg-U-Rak, Inc.; Jenn Altman, Great Lakes Home Healthcare Services; Indra Subedi, Plastek Industries, Inc.; Jana O’Camb, UPMC Hamot; and Nathaphum Sur-a-neknan and Bonnie Smith, Plastek. Back row, from left: Mark White, Plastek; Larry Peterson, Millennium Inorganic Chemicals; Bart Philip, Arvite; Angela Diver, Marquette Savings Bank; Christopher T. Rensel, Plastek; and John Orr, Industrial Sales & Mfg., Inc.
Computer Training Application Specialists — Erie From left: Access Application Specialist Jeremy McFadden, Erie Insurance; Excel Application Specialists Mary Niemi, Fralo Industries, Inc., and Cullen Myers, Berry Plastics; and Computer Training Manager Amy Pontillo. Not pictured: 17 graduates from 15 companies
October 2012 > www.mbabizmag.com > 29
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People Buzz MBA WELCOMES NEW BOARD MEMBER The Manufacturer & Business Association Board of Governors recently named Joel A. Berdine as its newest Board member, replacing Lorenzo Simonelli, president and CEO of GE Transportation. Berdine will serve on the 12-person Board of Governors for a three-year term. Berdine was appointed general manager of Global Supply Chain for GE Transportation in October 2009 and, in March 2012, appointed to general manager for Locomotive and Mining, Global Supply Chain. Prior to that, he served as general manager of Global Supply Chain for GE Sensing & Inspection Technologies. He assumed this role in June 2005 after serving as
general manager for GE Energyâ&#x20AC;&#x2122;s Power Electronics Global Supply Chain. Berdine began his GE career in 1988 at GE Energy, where he held numerous positions in Sourcing, Manufacturing and Quality. From 2002 until his current assignment, he led the Supply Chain for a series of acquisitions in GE Energy including Optimization Control, NRPS and Environmental Services. Berdine earned a bachelorâ&#x20AC;&#x2122;s degree in physics from St. Bonaventure University and a masterâ&#x20AC;&#x2122;s degree in Operations Research â&#x20AC;&#x201D; Applied Statistics from Union College in Schenectady, New York. PIRRELLO ENTERPRISES HIRES ACCOUNT EXECUTIVE Pirrello Enterprises Inc. and Archival Solutions Inc. in Erie, Pennsylvania recently hired Jennifer DeCecco as the firmâ&#x20AC;&#x2122;s
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32 < www.mbabizmag.com < October 2012
new account executive. DeCecco previously worked at the Erie Times-News as a retail account executive. She has more than 15 yearsâ&#x20AC;&#x2122; experience in customer service and sales and is certified in Kodak Capture Pro software. DeCecco will be responsible for growing the customer base and implementing sales. She earned her bachelorâ&#x20AC;&#x2122;s degree from John Carroll. WACHTER NAMED EHCA BOARD PRESIDENT Timothy S. Wachter, an attorney at the law firm of Knox, McLaughlin, Gornall & Senett, P.C. in Erie, has been named the president of the Board of Erie Homes for Children and Adults, Inc., (EHCA). Founded in 1912, EHCA is a private, nonprofit, multi-faceted organization offering both residential and community-
DEPARTMENTS > Contact: Karen Torres
based supports to children and adults with developmental disabilities. Through 10 programs, EHCA serves more than 300 people and their families every day throughout four counties: Erie, Crawford, Venango and Potter. Since its beginnings as a temporary home for needy infants, the agency has evolved into 16 group homes providing specialized residential care for children and adults and offers community-based support services for individuals who live on their own or with their families.
which includes Erie and northwest Pennsylvania.
UPMC HEALTH PLAN APPOINTS HAGERTY AS VICE PRESIDENT OF NORTHERN TIER MARKET UPMC Health Plan recently appointed Charles “Boo” Hagerty as its new vice president of the Northern Tier Market,
Hagerty is based at UPMC Health Plan’s regional retail sales office, located in the Boston Store building in downtown Erie.
In his new position, Hagerty will enhance UPMC Health Plan’s expansion into the Erie region, and will provide leadership and direction for the Health Plan’s sales, marketing, and provider and community relations initiatives. He will serve as regional spokesperson, with responsibility for retention, maintaining operational effectiveness, and developing innovative product and network solutions that support customer needs.
Prior to joining UPMC Health Plan, Hagerty served as chief development officer of the Hamot Health Foundation in Erie. He holds a bachelor’s degree in journalism from West Virginia University.
MALIN BERGQUIST CHARITIES, INC. ELECTS NEW BOARD MEMBER Vincent Son, CPA, has been elected to the board of directors of Malin Bergquist Charities, Inc., the nonprofit organization created by employees of the Malin Bergquist & Co. accounting firm and devoted to the fight against cancer. Son is an audit senior with Malin, Bergquist & Co. of Erie. He has more than eight years of public accounting and auditing experience, specializing in the manufacturing, employee benefit plan and nonprofit industries. Son holds a bachelor’s degree in business administration from Waynesburg University.
October 2012 > www.mbabizmag.com > 33
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For information, call: UPMC Health Plan – Erie Office 109 Boston Store Place Erie, PA 16501 814-833-6633