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ER P Su MP LUS mm Wo : rk it / 2015 VOLUME XXVIII, NUMBER 10 October Pa forc ge e 13
BUSINESS M A G A Z I N E Manufacturer & Business Association
Paul Teutul Jr., Keynote speaker /Page 18
John Ratzenberger, Keynote speaker / Page 16
ERIE
2015 Celebration Encourages Exploration of Manufacturing Careers, Opportunities / Page 12
Now, three generations strong, pictured above are Mark Pellegrino, Peter Bohrer, John B. Pellegrino Jr. & John B. Pellegrino Sr., PE
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October 2015
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
7 / Health Matters
2 / Spotlight
Why lowering cholesterol should be a Bill Hilbert Jr., chairman of the MBA’s Board priority for fostering a healthier workplace. of Governors and president of Reddog Industries, addresses the importance of DEBI VIECELI, RN Manufacturing Day.
9 / Financial Adviser
Four essential steps you need to know to grow your manufacturing business. T.J. KING
11 / Legal Brief
16
12 / Erie Manufacturing Day Hear why local manufacturers are encouraging the exploration of manufacturing careers and opportunities as part of Erie Manufacturing Day and the ERMP Manufacturing Workforce Summit.
How increasing government regulations 16 / John Ratzenberger are increasing the costs and complexity The Emmy-winning actor and “Made in America” of employment in the United States. host shares his passion for being a voice for DANIEL M. MILLER American manufacturing.
18 / Paul Teutul Jr.
One of America’s best-known masters of motorcycle design explains his career journey and the value of learning a trade skill.
29 / On the Hill
Legislators respond to a pro-manufacturing call to action in the state and nation.
18 eR P SumMP WLUS: mit ork fo / P2015 October age rce 13
ES S BMUa Sg IN a z i n e Manufacturer & Business Associatio
n
VOLUME XXVIII, NUMBER 10
Paul Teutul Jr., Keynote speaker /Page 18
John Ratzenberger, Keynote speaker / Page 16
ERIE
< SPECIAL SECTIONS
INSERT / Manufacturing Day Program See what’s planned for the 2015 Manufacturing Day celebration and Workforce Summit in Erie on October 1.
Page 30 / Manufacturing Showcase Learn about some of the manufacturers and manufacturing community supporters in our region.
DEPARTMENTS > 4 / Business Buzz 32 / HR Connection
2015 Celebration Encourages Exploration of Manufacturing Careers, Opportunities / Page 12
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36 / Legal Q&A 40 / People Buzz October 2015 > www.mbabizmag.com > 1
VOL. XXVII, NO. 10 OCTOBER 2015 Manufacturer & Business Association Board of Governors
Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Phil Katen C. Bruce Kern II Paul Kenny Jeff Plyler Mark Rose Greg Sbrocco Mike Weber
Editor in Chief
Ralph Pontillo rpontillo@mbausa.org
Executive Editor
Managing Editor & Senior Writer
John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org
Contributing Writers
T.J. King Daniel Miller Debi Vieceli, RN
Feature Photography
iStockphoto.com Management Squared Paul Jr. Designs
Additional Photography
Advertising Sales
Casey Naylon Patty Welther 814/833-3200 pwelther@mbausa.org
Design, Production Printing Concepts Inc. & Printing printcon@erie.net
ON THE COVER: Local manufacturers talk about the 2015 Manufacturing Day celebration in Erie and why they encourage the exploration of the careers and opportunities that manufacturing provides. S ee page 12. PLUS: Manufacturing Day keynote speakers, Emmy-winning actor John Ratzenberger and master bike builder Paul Teutul Jr., discuss the importance of trade skills and manufacturing in the USA. For full story, see pages 16 and 18. 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 2015 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.
2 < www.mbabizmag.com < October 2015
In honor of national Manufacturing Day, the Manufacturer & Business Association (MBA) in conjunction with the Erie Regional Manufacturer Partnership, Erie Regional Chamber and Growth Partnership and Career Street, among others, have planned two days of events — October 1 and 2 — to give everyone a way to celebrate and learn more about the backbone of our economy. Here, Bill Hilbert Jr., chairman of the MBA’s Board of Governors and president of Reddog Industries, explains the importance of MFG DAY with the Business Magazine.
The Association has actively supported manufacturers in the Erie region since 1905. Why is it important for the Association to support a formal Manufacturing Day event and Summit this year? Our MBA Board, as well as our Executive Committee and staff, are always focused on how best to provide value-added service to our membership. Organizing an event like Manufacturing Day is exactly what we feel benefits our membership by highlighting the significant role both manufacturers and businesses play in the local economy and the career opportunities within these companies. MFG DAY is designed to educate the community and future generations about what manufacturing is, and to improve the perception of the manufacturing industry in an effort to increase STEM (Science, Technology, Engineering and Mathematics) education and close the skills gap. You are a longtime Erie manufacturer. What does manufacturing mean to you? As a member of a family owned manufacturing business, I have been fully entrenched in the tooling industry for more than 30 years. Manufacturing is my life; it consumes you after a few years and creates a drive to succeed that is hard to explain. I learned the basics in high school and college, but the really important things are learned through the school of hard knocks — many of those lessons taught to me by my father, Bill Sr. The manufacturing business is extremely competitive and forces you into a mode of continuous improvement in all you do and in every decision you make. Whether it’s what machine to buy next or how to improve the employee benefit package, it challenges you to consider carefully every move. One thing I try never to forget is that even the most hightech manufacturing environment cannot run without quality staffing; our people make us who we are today, and they will always be our most valuable resource. The Erie Regional Manufacturer Partnership (ERMP) also is hosting a Manufacturing Workforce Summit on October 1 at the Bayfront Convention Center. As a member of ERMP, what do you hope the Summit accomplishes? The goal of the Workforce Summit is to bring together community stakeholders to discuss critical priorities and to formulate an action plan for workforce development in our region. Breakout sessions are planned that will cover topics critical to all manufacturers: marketing and outreach, guidance and assessments, career pathways, collaboration, retention and work-based learning. Participants will hear from Best Practice speakers and then will work together to discuss themes, ideas and suggested actions. As a group of employers, ERMP understands the value in investing time into these conversations, gaining different perspectives, and aligning our efforts with assets available to us and our community. The outcome of this event will be a comprehensive action plan, an energized group of community volunteers, and a cohesive voice needed to be more effective, efficient, and to influence change.
SPOTLIGHT >
Contact: Karen Torres
Celebrities John Ratzenberger and Paul Teutul Jr. will be speaking at the October 1 celebration at the BCC. What do you hope to hear from them? I am certain that John will talk about his Foundation for America, a nonprofit organization facilitating dialogue and informing the public and public policy makers on the growing decline of skilled labor in the United States. I hope John will focus on the great opportunities that exist with manufacturing and speak to the importance of STEM education and how we need to prepare American workers, manufacturers, educators, innovators and leaders for an American manufacturing renaissance. Paul Jr. may approach the subject from a slightly different angle, perhaps by talking about his own career and how he got started in the business of manufacturing custom motorcycles. As a member of a successful manufacturing family, I am hoping he, too, will speak to the importance of education, work ethic, and the great opportunities that lie within all manufacturing careers. Young people tend to look at celebrities and professional athletes as role models. Paul Jr.â&#x20AC;&#x2122;s celebrity was born out of manufacturing, so I am hoping our student audience can relate to that and, perhaps, look at Paul Jr. as that role model for their careers in manufacturing. How does your own company plan to mark national Manufacturing Day? Reddog Industries and PHB Incorporated will be participating in MFG DAY by setting up a booth at the Convention Center and spending our day talking with students and parents about the careers we offer in our manufacturing companies. We hope to answer many questions and help the general public, and students, in particular, understand the potential for a very successful future right here in Erie in one of our companies or in any of the manufacturers or businesses in the region. On Friday, October 2, we will be hosting tours throughout the day in our Reddog Industries plant to once again offer students and parents the chance to look inside a modern-high tech manufacturing facility and see that we are not the dark, dirty, dangerous environment that they may perceive but the very clean, safe and computer-driven environment of the future.
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Business Buzz Japan. The company has had a division in Erie, Pennsylvania for more than 14 years.
PROCESS AND DATA AUTOMATION UNVEILS NEW INDUSTRIAL LAB Process and Data Automation held an open house and industrial lab unveiling recently at its new location, 5451 Merwin Lane, in Erie, Pennsylvania.
For more information, visit the website www.walkerfiltration.com.
GANNON UNIVERSITY OPENS CAMPUS IN FLORIDA
The new facility, located in Knowledge Park at Penn State Behrend, includes a 6,500-squarefoot office suite and will soon include an additional 2,500 square feet when construction of the college’s Advanced Manufacturing and Innovation Center is completed, further expanding Knowledge Park.
Gannon University, based in Erie, Penn- sylvania now has a campus in Ruskin, Florida, near Tampa.
Process and Data Automation is a full-service, CSIA Certified industrial control systems integration firm with offices in Erie and Jamestown, New York. For more information about the new facility, visit www.processanddata.com.
WALKER FILTRATION LAUNCHES NEW DIVISION IN JAPAN As part of a targeted global expansion strategy and following rapid yet sustainable growth, Walker Filtration has launched a new division in Yokohama, Japan. “We are excited to be continuing to expand our global horizons with the opening of a new division in Yokohama, Japan,” said Lianne Walker MBE, group managing director. “With
a confident and experienced team, the division is well positioned to service and grow our client base in Asia-Pacific.” Founded in 1983 by husband and wife Brian and Carol Walker, Walker Filtration is a family run business that has continued to enjoy success on an international scale for more than 30 years. Walker Filtration is headquartered in Washington, United Kingdom and has divisions located in the United States, Australia and
The new campus initially will be home to 24 students in the Occupational Therapy Doctoral Program. Eventually, a Physical Therapy program will be added. Gannon already has agreements with Florida hospitals, which will accept students for internships and residencies. According to Gannon, the Florida site is an innovative response to the increasing demand for high-quality graduate education in disciplines that serve the rapidly expanding health-care sector of the Florida economy. The additional site increases the opportunity for Gannon University students, prospective students and faculty to help meet the need for health professionals in a state where the population of both older persons and school-age persons is growing.
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“The Ruskin campus leverages Gannon’s program strengths and capacity to deliver high-quality education,” said Gannon President Keith Taylor, Ph.D. “This initiative speaks to the academic, financial and organizational health of Gannon and our Erie campus into which we have invested $60 million in the last six years and intend to invest an additional $20 million to $25 million in the next three years.” For more information, visit www.gannon.edu.
DECISION ASSOCIATES M&A FINDS BUYERS FOR ERIE CANDY BRANDS For the second time this year, Don Moore and B.J. Lechner of Decision Associates M&A have found a local buyer for an iconic Erie candy brand. The Erie–based mergers and acquisitions consultants recently completed the sale of Pulakos Chocolates to Mike Noel of Millcreek Township. Earlier this year, Decision Associates M&A negotiated the sale of Stefanelli’s Candies to Joe and Kathy Stainbrook of Meadville.
recruitment, organizational development and succession/exit planning. For more information, visit www.decisionassociates.net.
DAYLIGHT-SAVINGS TIME ENDS NOVEMBER 1 It’s time to turn the clocks back! This fall, Daylight-Savings Time ends at 2 a.m. Sunday, November 1. Manufacturer & Business Association members are encouraged to download the Association’s FREE TimeChange poster and place in a highly visible location for all employees. To get your MBA Time-Change poster, visit www.mbausa.org.
“Pulakos Chocolates and Stefanelli’s Candies are very strong brands in western Pennsylvania. The previous owners of both of these great Erie brands were very interested in finding buyers who would take care of their customers and their employees,” said Moore, a partner in Decision Associates M&A. “Both of the new owners are experienced business people who have demonstrated a high level of commitment to the Erie region.” Decision Associates M&A is affiliated with Decision Associates, a full-service business consulting firm offering strategic planning, marketing, executive
REAL LEADERS WEAR STEEL TOE SHOES
Introducing the eleven-course Master of Manufacturing Management (M.M.M.) degree. Giving professionals with engineering, business, and science backgrounds the skills to lead in production environments. Attend an evening Graduate Programs Information Session on Wednesday, Oct. 21, or Thursday, Oct. 29. Register at behrend.psu.edu/grad-events or call 866-374-3378. October 2015 > www.mbabizmag.com > 5
Health Matters
EDITORIAL > By Debi Vieceli, RN
Lowering Cholesterol Should be a Priority for Fostering a Healthier Workplace For employers, the safety of employees is always a priority. So, in a sense, it is surprising that there isn’t as much concern by employers about the cholesterol levels of their employees. Because when you examine the kinds of problems that high cholesterol causes employees — and, by extension, employers, as well — then it makes a lot of sense to pay attention to the issue of employees and cholesterol. Lowering cholesterol levels for employees needs to be a priority for employers. According to the Centers for Disease Control (CDC), 71 million Americans have high LDL (or “bad”) cholesterol and roughly one-third of those get treatment for it. More importantly, the diseases connected with high cholesterol tend to be serious, even potentially fatal. High cholesterol levels can lead to heart disease, heart attack and stroke. In fact, the higher the blood cholesterol level, the greater the risk for heart disease and heart attack. That is a message that needs to be delivered to employees by employers. So, too, is information about how to manage cholesterol levels. Because there are no outward, obvious symptoms of high cholesterol, it is essential to educate employees about its dangers. What Employers Can Do Because high cholesterol has the potential to affect everyone — old, young and in-between; women, as well as men — there is a good chance it is part of every company’s workforce.
Therefore, it’s essential that employers explore promoting fun events that emphasize a healthy lifestyle and can touch a large number of employees. A company “weight race,” for instance, is a popular option because it enables employees to set reasonable weightloss goals. So, too, is a fitness challenge that encourages employees to exercise by participating in sports leagues. Companies also can encourage physical activity by offering to pay for gym memberships for employees. Because an unhealthy diet is a contributor to high cholesterol, employers can encourage healthier eating through the choices provided in workplace cafeterias and vending machines. At catered meetings, the food offerings should include healthy choices. By increasing your employees’ opportunities to eat healthier, you increase the likelihood that they will. Workplaces and Healthy Behaviors Workplace policies have been shown to be able to promote a culture of good health. For instance, one important policy, which is sometimes overlooked, is simply offering a health benefits plan that allows employees to have regular visits with their physicians. The sedentary lifestyle connected with the modern workplace also contributes to the development of serious health issues. That’s why creating an exercise area for
employees can be a positive, if this is a possibility. Periodic blood cholesterol screening and health risk assessment programs at the worksite are ways to identify employees with high cholesterol and help them begin to control it. One-on-one coaching and lifestyle coaching can be effective ways to follow up with employees identified as having high cholesterol. In addition, informational brochures, letters and newsletters can supplement lifestyle coaching. For more information about wellness programs, visit http://workpartners. com/products-services/healthwellness/.
Debi Vieceli, RN, is a Cardiac Care manager with UPMC Health Plan, which is part of the UPMC Insurance Services Division. The UPMC Insurance Services Division offers a full range of insurance programs and products and also includes: UPMC WorkPartners, UPMC for Life, UPMC for You, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions, and Askesis Development Group.
October 2015 > www.mbabizmag.com > 7
Doing what’s right. At Erie Insurance, being “Above all in ® SERV ICE ” means knowing what’s right and doing something about it – not just with our Customers, but also in the communities where we do business. You’ll find our Employees and Agents volunteering out in the neighborhoods where they live and work. It’s who we are and it’s just the right thing to do.
Thank you. To all Manufacturers who know the value of innovation, job creation and community support. You make Pennsylvania a better place to work and live.
Go to erieinsurance.com for company licensure and product details. CMS149h MFGday ad 2015
Financial Adviser
EDITORIAL > By T.J. King
Four Essential Steps to Grow Your Manufacturing Business Taking a manufacturing company to the next level can be extremely challenging, requiring numerous crucial decisions, from planning and strategy to having the right resources in place. To help achieve successful growth for your organization, here are a few essential steps to consider along the way: 1. Know Who You Are – What’s the Current Business Climate? Are you planning to sell to a new customer base, create a new product line or expand your existing facility? The first step in gearing up for growth is asking, “What is the current climate of my business activity?” Answering this critical question requires that you understand your current customers’ needs. These days you don’t have to make assumptions about your customers’ needs when there is a range of webbased survey tools to use. A simple, 10-question email survey, possibly incentivized with an inexpensive gift card, can yield helpful customer feedback and make sure your next steps are as data-driven as possible. It will be time well spent, as a thorough selfassessment of your current situation is a great way to identify the best opportunities for growth. 2. Identify Where You Want to Go – Where Do You See Your Business in Five Years? When planning an expansion of your facility or offering a new product line, it is vital to plan for the future. There are many resources available to help business owners plan for financial and operational growth. Owners of existing businesses may not realize it, but their local SBDC (Small Business Development Center) can help put together the framework, or a business
plan, to successfully help you move your company to the next level. In northwestern Pennsylvania, the Gannon SBDC, for example, works with new and existing businesses to prepare for future growth and expansion. Accountants, lenders and attorneys are also a valuable resource to make sure you are taking the essential steps when you are looking toward continued growth in your industry. 3. Determine Your Needs – How Much Will it Cost Me? Do I Have the Correct Staffing Levels? When it comes to planning the future growth of your business, you have to ensure you have the ability to secure the proper funding. Do you have an adequate working capital line of credit? Do you have the proper equipment in place? Can your existing facility handle your expansion plans? These are very important questions to ask yourself, and resource partners, such as lenders, accountants, attorneys and local SBDC consultants, who can help you find answers. Just as important, you need to ask yourself if you have the correct staffing level for growth or if your current team could grow in capacity through professional development. It is vital to know that you have the correct employees in place, and everyone is on board with and prepared for future expansion plans. 4. Consider Your Options – How Do I Pay for This? A strong and straightforward relationship with your bank is invaluable, and it is important to keep lenders in the loop with your business’ current condition and future goals. Lenders want to know what is going on within their customers’ shops, and what they can do to become a partner
in business expansions. Always start with your lender when discussing future financing needs, but northwestern Pennsylvania businesses have access to other types of financing for equipment, real estate and working capital. There are economic development agencies that offer a range of local, state and federal financing that’s available to local businesses. For example, the Small Business Association (SBA) offers the 504 loan program, which is an attractive financing option when looking to finance new equipment or real estate. It is important to talk to your lender about all options when it comes to financing an expansion. For more information on how Bridgeway Capital can help your business achieve growth, contact T.J. King, director of Erie Office, at 814/451-1172 or email tking@bridgewaycapital.org.
T.J. King leads Bridgeway Capital’s economic development activities in northwestern Pennsylvania. Bridgeway provides financing to startup entrepreneurs and established businesses looking to grow the economy and create jobs in the region. As a CDFI (Community Development Financial Institution), Bridgeway may be an ideal partner if your bank is unable to provide financing for your current expansion needs.
October 2015 > www.mbabizmag.com > 9
Legal Brief
EDITORIAL > By Dan Miller
A New Era of Regulation: Increasing Costs and Complexity Employers are struggling to comply with increasing burdens imposed on them by government regulation. Recently, increasing regulations by the U.S. Department of Labor and the National Labor Relations Board, as well as requirements under the Affordable Care Act (also known as “ObamaCare”), significantly increase the cost and complexity of employment. U.S. Department of Labor (USDOL) On July 6, 2015, the USDOL issued a Notice of Proposed Rulemaking to increase the salary requirement for the white collar exemptions under the Fair Labor Standards Act (“FLSA”) from $455 per week to $921 per week. The USDOL claims the increased salary level will simplify the identification of overtime-protected and exempt employees and make it easier to understand exemptions. The argument made to increase the salary level is that employees in certain industries, such as fast-food, will receive much greater protections. However, the proposed regulation fails to consider the impact upon many businesses that cannot afford to pay employees the increased salary. This change will force employers to convert those salaried exempt employees to hourly employees or to increase their salary. On July 15, 2015, the USDOL issued an Administrator’s Interpretation addressing the misclassification of workers as independent contractors. The USDOL’s position is that most workers are employees under the FLSA. This position is a reflection of the USDOL’s intent to ensure that most workers are employees, and subject to minimum wages and overtime. Although the Administrator’s Interpretation is not a completely new approach for the USDOL, it emphasizes
the USDOL’s intent to scrutinize businesses who utilize independent contractors. Employers should review each independent contractor relationship to determine whether the worker might be an employee. National Labor Relations Board (NLRB) Since the beginning of the Obama administration, the NLRB has been diligently working to tip the scales in favor of unions. The NLRB’s goal has been to increase unionization. Recent changes by the NLRB have furthered this goal. First, the NLRB has implemented “quickie elections” to increase the speed with which the NLRB conducts an election. The alleged purpose for the quickie election rule is to ensure a fairer election process. The real goal is to allow unions to secretly organize and for the election to be held quickly so that the employer has little ability to educate employees. Thus, employers need to be constantly prepared to educate employees about unions. The second area in which the NLRB has been aggressive is the regulation of employer policies. Although the NLRB has been consistently finding employer policies to be in violation of the National Labor Relations Act, it was not until March 2015 that the NLRB General Counsel issued a Report summarizing all of the areas in which the NLRB has found employer rules to be in violation of the National Labor Relations Act (“NLRA”). Not only are these rulings shocking to employers, a review of the Report demonstrates how difficult it is for employers to maintain policies that comply with the NLRA. Employers must have each and every policy reviewed carefully.
Affordable Care Act (ACA) Finally, although many of the provisions of the ACA have been implemented, the most significant out-of-pocket and compliance costs of the ACA are finally being recognized. Many employers are being forced to pay increased insurance premiums due to community rating. Large employers are also being required to comply with the “pay or play” provisions, thereby causing employers to spend additional time, effort and money. Conclusion Each of the areas referenced above emphasize that employers are in a new era of regulation that increases the cost and complexity of doing business. It is imperative that employers review all of their employment policies and practices to ensure compliance. Should you have any questions concerning the contents of this article, you can contact Dan Miller at 814/8707708, or any of the other members of the MacDonald Illig Labor and Employment Practice Group.
Dan Miller is a partner with the law firm of MacDonald, Illig, Jones & Britton LLP. Miller is chair of the firm’s Labor & Employment practice group. He represents management in collective bargaining, labor relations, employee relations, employment discrimination, unemployment compensation, and wage-and-hour cases.
October 2015 > www.mbabizmag.com > 11
2015 Celebration Encourages Exploration of Manufacturing Careers, Opportunities ERIE
Manufacturing Day is a growing grassroots movement of manufacturers dedicated to overcoming the shared challenges facing manufacturers today. The most pressing issue — the growing skills gap. According to research from Deloitte and The Manufacturing Institute, the United States faces a need for nearly 3.5 million manufacturing jobs over the next decade, and 2 million of those jobs are likely to go unfilled due to the skills gap. Experts agree that this challenge will only grow as the demographics of our workforce evolve with retirements, new technological advances requiring a higher level of training and certification, as well as our K-12 education system, which continues to lack the necessary focus on STEM (science, technology, engineering and math) education. Manufacturers’ ability to address this issue has been hindered by the public perception that careers in manufacturing are undesirable and by insufficient preparatory education. Both of these problems stem from a lack of understanding of present-day manufacturing environments, which are highly technical. “Whether you are designing or making a product, today’s jobs require technical skills,” explains Greg Sbrocco, general manager for Global Supply Chain – Services at GE Transportation in Erie and member of the Manufacturer & Business Association (MBA) Board of Governors. “Unfortunately, students begin losing interest in math and science around middle school.” In response, GE, for one, partners with local area schools, holding programs in and out of the classroom designed to spark students’ creativity and interest by engaging them in hands-on activities and competitions. Other organizations have followed suit. This year, the MBA, in conjunction with the Erie Regional Manufacturer Partnership (ERMP), Erie Regional Chamber and Growth Partnership, Career Street and more than 25 sponsors, will be hosting a two-day Manufacturing Day celebration and Manufacturing Workforce Summit on October 1 at the Bayfront Convention Center. Tours of local manufacturing facilities will be held October 2. Manufacturing Day gives manufacturers an opportunity to raise and address these issues by simply exhibiting what they do to visitors curious about manufacturing. Through this collective effort, Manufacturing Day draws public attention to manufacturing’s present-day reality and encourages jobseekers to develop the skills they need to qualify for long-term careers in this secure and growing sector of the economy. 12 < www.mbabizmag.com < October 2015
“Manufacturing Day provides us with an excellent opportunity to dispel public misconceptions about manufacturing, as many local companies will open their doors on Friday, October 2, to students, parents and educators,” explains Bill Hilbert Jr., chairman of the MBA Board of Governors and president of Reddog Industries in Erie. “It will be an excellent opportunity to directly communicate with the community. One goal for Manufacturing Day is to build interest in young people in manufacturing, encouraging them to pursue STEM careers.” “Manufacturing jobs are the backbone of most successful economies,” adds Tim Hunter, immediate past chairman of the MBA and president and CEO of McInnes Rolled Rings. “Creating and maintaining an environment in our community that enables manufacturing to grow and flourish will be a vital component of Erie’s future.” Many parents and schools do not encourage their kids to pursue manufacturing careers either, resulting in a critical lack of understanding and interest among the next generation of talent. This is at a time when manufacturing could not need that talent more. “The biggest myth about manufacturing today is that all of the good manufacturing jobs that built our community are gone,” says Hunter. “Manufacturing is alive and well in our community and still provides over 20,000 very good jobs.” Local manufacturers agree that manufacturing provides numerous opportunities — especially in the areas of education and wages. “With the high cost of secondary education and vastly improved manufacturing wages and environment, young people and their parents should consider a future in manufacturing as an option to an immediate entry into higher education,” says Roger Schultz, manager of Technical Training at LORD Corporation. “Entering the workforce prior to college allows a young person an opportunity to earn money and develop a better understanding of what they want to do with their life. There are many opportunities within the manufacturing community for a young person to advance and enter college while they continue to work. They can go on to earn their college degree and then advance further within manufacturing, and many manufactures have ‘aid for education’ programs that can assist employees with the cost of a college degree.” John B. Pellegrino Sr., P.E., of Ridg-U-Rak, Inc., in North East, Pennsylvania, for instance, applied his education to build a successful manufacturing career. “I started as a chief structural engineer and, today, I am the president and
Source: Deloitte and The Manufacturing Institute
CEO, and sole owner of one of the largest privately-owned industrial rack manufacturers in North America,” he explains. While the assembly line of Henry Ford’s day still shapes the view of industry as one of low wages and poor working conditions, manufacturers say much has changed. “In 2013, the average manufacturing worker in the United States earned $77,506 annually, including pay and benefits,” states Schultz. “Manufacturing employees in the United States today are generally working in clean, bright, ergonomically friendly atmospheres that provide a family sustaining wage.” It’s a far cry from your grandfather’s manufacturing industry. “Some of today’s biggest innovations are happening on the manufacturing floor. Manufacturing today is about technologies like 3D printing, robotics, predictive maintenance, and sensor enabled production automation,” adds Sbrocco. “It’s about turning data into information used to optimize processes. This convergence of the physical machinery on the floor with the IT infrastructure and software enables what we call the Brilliant Factory.” Manufacturers in the United States are indeed some of the most productive in the world. Statistics show that, taken alone, manufacturing in the United States would be the ninth-largest economy in the world, supporting an estimated 17.6 million jobs in the United States — about one in six privatesector jobs. Additionally, more than 12 million Americans are employed directly in manufacturing. In the Erie region, LORD, for example, estimates more than 1,100 employees live and work within the region. Meanwhile, GE employs more than 4,000 at its Lawrence Park facility. The company also recently completed a study with Tripp Umbach, noting that GE Transportation has a $3.8 billion annual economic impact to the greater Erie area economy and supports one in every 20 jobs. “As an ecosystem, manufacturing directly impacts local economies,” says Sbrocco. “Manufacturers rely on suppliers for materials, parts and services, while its employees are customers of local area businesses.” Hence, when manufacturing thrives, its impact benefits everyone.
ERMP Workforce Summit Brings Manufacturers Together for Common Purpose While there have been many attempts to address workforce development needs over the years, the Erie Regional Manufacturer Partnership (ERMP) is unique in that it is manufacturer led and focused on workforce development through the lens of industry. Today, the workforce need is so great that would-be competitors have come together to solve the problem. The ERMP Manufacturing Workforce Summit, set for 11 a.m. to 3:30 p.m. Thursday, October 1, at the Bayfront Convention Center is a “Call to Action” and will bring together regional employers, educators, government officials and community organizations to discuss priorities for workforce development. Through expert speakers and breakout sessions, participants will discuss manufacturing career pathways and other proven workforce solutions. Following the Summit, ERMP will prioritize the goals and strategies discussed and develop an action plan that provides strategic direction and defines ongoing collaborative activities to promote manufacturing and develop a skilled workforce. “Ultimately,” states ERMP Chairman George Currie of Erie Press Systems, “ERMP strives to develop a thriving manufacturing workforce in which qualified candidates compete for high-demand jobs and earn family-sustaining wages.” For more information, visit www.ErieMfgDay.com or see the Manufacturing Day insert in this month’s magazine. The Summit is sponsored by ERMP, the MBA, Erie Regional Chamber and Erie Community Foundation. October 2015 > www.mbabizmag.com > 13
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John Ratzenberger celebrated American manufacturing and the skill of American workers as he traveled to factories in towns throughout the country, during â&#x20AC;&#x153;Made in America,â&#x20AC;? a TV show he both produced and hosted. 16 < www.mbabizmag.com < October 2015
Photo courtesy of Management Squared
John Ratzenberger The Voice of American Manufacturing
Cliff Clavin from “Cheers.” Hamm from “Toy Story.” Mack from “Cars.” John Ratzenberger is the voice for many of America’s most beloved TV and film characters. Yet, one of this Emmy-winning actor’s most passionate projects to date is as an advocate for American manufacturing. Ratzenberger, an accomplished screenwriter and producer, is the host of the hit Travel Channel TV series “Made in America,” and serves as founder and chair of the nonprofit pro-manufacturing group, the Foundation for America. He also co-founded Nuts, Bolts & Thingamajigs, a foundation now run by the Fabricators & Manufacturers Association, which is aimed at encouraging young people to explore careers in manufacturing. So, what makes the sixth most successful actor of all time, with a total box office of more than $3 billion — yes, billion — want to be a champion for manufacturing? For Ratzenberger, it’s all about looking at the big picture. Before landing his role as everyone’s favorite know-it-all mailman on “Cheers,” the former carpenter and Bridgeport, Connecticut native grew up in a household where he learned how to tinker and fix things. His uncle worked for Bridgeport Machines “building the machines that built the machines,” he says, and Ratzenberger — for all his fame and fortune — never lost sight of the value or importance of learning a trade. “Kids today are not making things,” he says. “Instead they are going to college to get degrees and can’t get a job. There are plenty of jobs out there. We just need to teach kids the skills.” Ratzenberger will share his enthusiasm for all things made in the USA as one of the keynote speakers for the Manufacturer & Business Association’s Manufacturing Day celebration on October 1 in Erie. His message is simple and straightforward — that Americans must wake up to the shortage of skilled workers that threatens our country as a whole. “Western civilization is at risk if we don’t introduce our children to the ability of using tools to build things,” he says, pointedly. “It took people who build, and invent, and innovate and create things, to build civilization; it wasn’t actors and sports celebrities. It was people who actually got up in the morning and used their hands for something useful… . My concern is that we might be heading down a road where there is no turning back from it if we don’t turn around soon.” The celebrity-turned-manufacturing proponent is a man of action. This past February, he announced a $1 million donation from his foundation to bring back “shop” classes into Georgia schools to teach students how to work with their hands and learn a trade. The initiative is designed to help young people learn to be self-reliant and self-sufficient. “Right now, children graduate from high school without the ability to read a ruler. So even if there are jobs in manufacturing facilities that start you at $75,000 a year, which there are, how do you teach a child who doesn’t have the ability to read a ruler?” Ratzenberger asks. “How do you teach that person to operate a machine?”
K-12 students on the importance of manufacturing jobs. The campaign, spearheaded through Ratzenberger’s Foundation for America, will provide video content and accompanying lesson plans, staff development, scholarships and other engaging opportunities for students and parents to generate interest for STEM careers. “Georgia opened up their arms to us, and we were willing to go down this road. That’s why we funded that program,” notes Ratzenberger. “But, many states aren’t willing because the people in charge just don’t understand the importance of being able to build something or make something. I’ve always said that before people are elected to office — I don’t care if it’s a mayor or school board or the president of the United States — they should be required to assemble a coffee table from IKEA.” Not only is the legislative climate problematic for American manufacturers, he says, but so, too, are the images found in mainstream media. Most kids today have grown up with the perception that the industrial economy in America is a thing of the past, and that America no longer makes things, which research shows is patently false. “I think Hollywood is guilty in its conviction about people who make things,” says Ratzenberger. “For the last 20 to 30 years, the heroes of movies have been people who don’t really know how to do anything. And, for some reason, the people that do know how to do things, like farmers, carpenters, electricians, factory workers, they are led to think of them as being less intelligent. So, we’ve ended up honoring failure instead of success in our society, and Hollywood has gone a long way in promoting that image.” The actor who traveled the country filming “Made in America” has tried to show viewers the dynamic world of modern manufacturing in the United States. He encourages parents, guidance counselors and students to tour manufacturing facilities and to get a first-hand look at the careers and opportunities that the trades offer for a better quality of life, because the time to promote and educate a skilled workforce is now. “This is the fate of the Western civilization,” he says. “We have to keep the standards high, and we have to build things. There is just no question. If all the actresses and celebrities disappeared tomorrow, besides their families being sad, nobody really cares. Civilization wouldn’t skip a beat. But imagine if everybody who made something, everybody who has a skill in the art of carpentry or plumbing or bricklaying or manufacturing, if they all stayed home on a certain day, civilization would grind to a halt. People have to understand how important the ‘essential workers’ are.” Because, no one makes things better than the USA? “Oh no, no,” Ratzenberger says. “That’s just been proven time and time again.” For more information about John Ratzenberger, visit www.ratzenberger.com.
Statistics paint a troubling picture if trade skills are lost. In fact, with the average age of a manufacturing worker around 57 years old, many skilled workers will be retiring in droves over the next 10 years, and there’s not a ready and willing workforce being trained to replace them. “Unless we reintroduce shop classes and home ec back into the middle schools and high schools,” Ratzenberger says, “we’re heading for an industrial tsunami — a crisis that’s going to be here within the next 10 years if we don’t do something now to turn it around.” Georgia, which recognized this looming crisis, was the first state to adopt and implement the National Educational Initiative, an effort to educate
John Ratzenberger is the keynote speaker for the 4 p.m. Thursday, October 1, Manufacturing Day presentation at the Bayfront Convention Center in Erie. His appearance is sponsored by Ridg-U-Rak, Inc., one of the largest pallet rack storage manufacturers in North America. For more than 70 years, Ridg-U-Rak, Inc., headquartered in North East, Pennsylvania, has been an industry pioneer, taking a leadership position in the development of innovative solutions designed to improve pallet rack safety. To learn more about the company, visit www.ridgurak.com. October 2015 > www.mbabizmag.com > 17
N A C I R E AM R E T S A M E L C Y C R O MOT Paul Teutul Jr., a star of the TV series â&#x20AC;&#x153;American Chopper,â&#x20AC;? is presently the owner of Paul Jr. Designs, a custom motorcycle manufacturer and clothing vendor based in Rock Tavern, New York. 18 < www.mbabizmag.com < October 2015
Photos courtesy of Paul Jr. Designs
When it comes to the “cool factor,” there is nothing like a piece of art on two wheels. Just ask Paul Teutul Jr., one of America’s best-known masters of motorcycle design. A star of the hit reality TV series, “American Chopper,” he is the chief designer and fabricator of some of the world’s most famous rides. Paul Jr. and his father formed Orange County Choppers in 1999, a motorcycle manufacturer and lifestyle brand company based in the town of Newburgh, New York. He and his bike-building family became famous when “American Chopper” debuted in September 2002 on the Discovery Channel. The company also was featured on “Orange County Choppers” on the CMT network in 2013. Today, at his new company, Paul Jr. Designs, Paul Jr. “pushes the limits on creativity beyond just motorcycles.” The business, founded in 2009, is thriving, producing custom bikes, including Azeroth Choppers for Blizzard’s World of Warcraft and the White Cap SKILSAW Bike. Most recently, Paul Jr. built a bike for the 2016 blockbuster Michael Bay film, “Teenage Mutant Ninja Turtles 2,” and is preparing to write a book that toys with the title, Given the Opportunity. “An opportunity can be what we’re getting ready to do on October 1, presenting something to someone, planting a seed in their mind that maybe this is a direction that may work for them, that may be good for them,” he explains, of his upcoming appearance at the Manufacturer & Business Association’s Manufacturing Day celebration in Erie. “Initially, for me, it was just being crafty with my hands, putting things together, then working for my father in the steel business and being trained by other people who had a skill.” The Montgomery, New York native, has been molding metal into shape since he was 12 years old. He started his apprenticeship working summers in his father’s steel business, Orange County Ironworks. Then, in high school, he was involved with a Board of Co-operative Educational Services (BOCES) program that allowed him to improve his metalworking skills. “I was mechanically inclined pretty early; I was good at putting things together without directions, so to speak,” he says. “I think some people are just more inclined to be mechanical or have the mind to work with their hands. I was one of those people.” After graduation, Paul Jr. joined Orange County Ironworks full time, eventually becoming head of its railing department. He took the time to put his stamp on the job. “I felt like the way I was doing it was better than what I was taught because it was a little quicker and it was more efficient, which is extremely important when it comes to manufacturing,” he states. “You want to get the job done in a timely manner, but you also want to have the highest level of quality, figuring out ways to cut corners without cheapening the product.” During this time in his life, Paul Jr. says an “evolution” took place. He was presented with the opportunity to build motorcycles with his father and developed a style all his own. “It was just helping him out in the beginning. Then, I started to get a knack for it. Then, when we really went full time, that’s when I started to realize that not only did I have the ability mechanically to actually do the work, but I also had the ability creatively to come up with something innovative and original,” explains Paul Jr. “That’s when that process started to grow. That evolved into a very efficient way of working on a high level of creative.”
“Quite often, when you do a 9-11 Memorial bike, the person who is appreciating what you’re doing doesn’t even have to appreciate motorcycles, right? They just have to appreciate what it represents,” he says. “Ultimately, even though the bike is the platform or the bike is the canvas, it doesn’t really always have to do with motorcycles. It’s more about the creative process.” Design and innovation are words often brandished in today’s modern manufacturing environment — yet, the number of skilled workers needed to drive such inventiveness is lacking. Today, research shows that nearly two-thirds of U.S. companies report having positions for which they can’t find qualified applicants. “Trades are not being passed down any longer and that’s a real problem long term,” explains Paul Jr. “I would like to see that revitalized. Programs like this one (Manufacturing Day), creating an awareness for them, you’d be shocked how much kids really want this, but there’s no outlet for it, because they can express themselves through what they’re doing with their hands.” Statistics show that children with low self-esteem tend to perform below their potential in school and make poor decisions in social situations. Creativity, on the other hand, fosters self-worth. “A lot of times, kids drift off and they go to places that they shouldn’t be going like drugs and alcohol and things like that,” he says. “The truth is, if someone’s nourishing them, if someone’s saying, ‘Hey, try this,’ and they do it, and they accomplish something, then their self worth and their self confidence are increased tremendously. The younger you can instill that, the better chance you have of building these kids up.” If there is one message that the master bike builder wants students to hear, it’s that his story is proof that success can happen with the right opportunity and the right skills. “My story’s different than a lot of people. It’s the American dream in the sense of it’s exactly what makes America great,” Paul Jr. states. “I’m still in the small town, Montgomery, where I grew up. I’ve been here for 40 years. The opportunity just presented itself and this is where we’re at today. Success can happen for anybody like that.” For more information about Paul Jr. Designs, visit www.pauljrdesigns.com.
The creative inspiration and ability to push the limits on each design, according to the now 40-year-old bike builder, comes down to theme. “When you can build a bike that represents the new World Trade Center or Cadillac CTSV, or Gears of War, or Blizzard Entertainment World of Warcraft, or all these things that we’ve done, the theme is where I pull my inspiration,” he says. In the niche industry of custom bike design, a customer’s relatability to the product is key. Each machine is a masterpiece with its own special meaning.
Paul Teutul Jr. will be the keynote speaker at the noontime Thursday, October 1, Manufacturing Day presentation at the Bayfront Convention Center in Erie. His appearance is sponsored by Erie Insurance, a longtime provider of insurance services to the regional manufacturing community. Based in Erie, Erie Insurance Group is the 11th largest homeowners insurer and 12th largest automobile insurer in the United States based on direct premiums written and the 16th largest property/casualty insurer in the United States based on total lines net premium written. For more information, visit www.erieinsurance.com. October 2015 > www.mbabizmag.com > 19
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MANUFACTURING DAY 2015 In honor of Manufacturing Day, the Manufacturer & Business Association (MBA), in conjunction with the Erie Regional Manufacturer Partnership, Erie Regional Chamber and Growth Partnership, and Career Street, among others, have planned two days of events to give everyone a way to celebrate and learn more about the backbone of our economy. On Thursday, October 1, the Bayfront Convention Center will be converted into a massive display and celebration of American manufacturing. Exhibit hall doors open at 9 a.m. See Manufacturing Day agenda below. On Friday, October 2, a series of company tours hosted by local manufacturers will provide students, educators, elected officials, media and others within our community a firsthand look at modern manufacturing. For more information, visit www.ErieMfgDay.com.
MANUFACTURING DAY AGENDA*: 9 a.m.
Exhibit Hall Opens Trade show demonstrations and presentations throughout the day.
presents Keynote Speaker
PAUL TEUTUL JR.
9:30 - 11:30 a.m. Little Theater Feature Presentations (Exhibit Hall)
Motorcycle master Paul Teutul Jr. has been molding metal into shape since the age of 12, when he began his apprenticeship at his father’s steel business. He’s widely recognized as the chief designer and fabricator of some of the world’s most famous motorcycles, as featured in the hit television series “American Chopper” on the Discovery Channel.
(9:30 a.m.) Chuck Jenkins, “The Biker Dude,” Manufacturer & Business Association The Making of a Legend - Careers in Manufacturing
(10:30 a.m.) Steven D. Shatrich, senior vice president and national market manager, PNC Equipment Finance Delivering Equipment Finance Insights, Ideas and Solutions Learn how this $900 billion industry can help you leverage your cash flow and grow your business (11:15 a.m.) Wei-Shin Lai, MD, CEO, Acoustic Sheep Building Solutions - Improve the World with Inspired Actions
Noon
Keynote Speaker Paul Teutul Jr. (Grand Ballroom)
Although Paul Jr. started his career as co-founder of Orange County Choppers, after branching off, he now shares his creativity and unique approach to design with the world through his work at Paul Jr. Designs. Founded in 2010, his new company pushes the limits on creativity beyond just motorcycles, where Paul continues to pursue his passion for building the impossible.
1:30 - 3:30 p.m. Little Theater Feature Presentations (Exhibit Hall)
presents Keynote Speaker
JOHN RATZENBERGER
(1:30 p.m.) Jennifer Pontzer, executive director, Career Street Career Street: What It Is, How It’s Working and Why You Should be Involved
Ratzenberger is best known for playing mail carrier “Cliff Clavin” on the sitcom “Cheers.” He created and starred in the Travel Channel series “Made in America”, which highlighted U.S.-made goods and workers. Ratzenberger is passionate about how important it is for this country to recognize the need for, and to provide the training to produce, skilled laborers.
(2 p.m.) Bob Bengel, president/CEO, NWIRC NWIRC: Driving Impact for Manufacturers (2:30 p.m.) Joe Kent, director of Partnerships, WIN Learning The Erie Educonomy and Manufacturing (3 p.m.) Charles “Boo” Hagerty, vice president, Northern Tier, UPMC Health Plan; Board chair of ACES ACES: Turning Students into Entrepreneurs
4 p.m.
Keynote Speaker John Ratzenberger (Grand Ballroom)
*Subject to change.
American Tinning & Galvanizing Company American Turned Products Bliley Technologies/Sunburst Bridgeway Capital Carbinite Metal Coatings Custom Engineering Eastern Alliance Insurance Group Electronic Communication Services, Inc. Erie City School District Erie Insurance Erie Press Systems Erie Regional Chamber and Growth Partnership Eriez Magnetics Gannon University GE Transportation Great Lakes Automation Services, Inc. Howard Industries
His current foundation, the Foundation for America, exists to educate and prepare American workers, manufacturers, educators, innovators and leaders for an American manufacturing renaissance. Ratzenberger is currently in pre-production on a new television series with the purpose to awaken Americans to the shortage of skilled workers that threatens our country as a whole.
EXHIBITORS
(*List of exhibitors as of press time.)
Industrial Sales & Mfg., Inc. Iroquois School District Kelly Services, Inc. Knox Western Logistics Plus, Inc. LORD Corp. MacDonald Illig Attorneys Machining Concepts, Inc. Maple Donuts Manufacturer & Business Association Matric Group McInnes Rolled Rings Micro Mold & Plastikos National Fuel Resources Norampac Northwest Commission Northwest Industrial Resource Center (NWIRC)
Northwest Savings Bank Parker Hannifin Penn State Behrend Pennsylvania CareerLink Erie County PNC Bank Porreco College of Edinboro University Port Erie Plastics Printing Concepts PSB Industries Reddog Industries/PHB Inc. Rehrig Pacific Company Ridg-U-Rak, Inc. Tech Molded Plastics Triangle Tech Waddell & Reed Welders Supply/Lincoln Electric Zurn Industries
www.ErieMfgDay.com
MANUFACTURING WORKFORCE SUMMIT The Erie Regional Manufacturer Partnership (ERMP), a diverse group of 20 Erie County manufacturers, will host the Manufacturing Workforce Summit from 11 a.m. to 3:30 p.m. Thursday, October 1, at the Bayfront Convention Center with support from the MBA, Erie Community Foundation and the Erie Regional Chamber and Growth Partnership. The Summit will address the most critical issue facing manufacturers, bringing together interested regional manufacturers, educators, government officials and other community leaders to discuss plans and priorities for workforce development.
ERMP WORKFORCE SUMMIT AGENDA*: Suggested Activities
9 a.m.
Rebranding the Image of Manufacturing
Exhibit Hall Opens
11 - 11:15 a.m.
Welcome/Grand Ballroom
11:15 a.m. - Noon Panel Discussion Noon - 12:30 p.m. Break/Pick Up Lunch 12:30 - 2:30 p.m. Breakout Sessions Rebranding the Image of Manufacturing Informed Guidance and Assessments Career Pathways with Stackable Credentials Building a Collaborative System Workforce Retention Work-Based Learning
2:30 - 2:45 p.m.
Break/Return to Grand Ballroom
2:45 - 3:30 p.m.
Call to Action
4 p.m.
BREAKOUT SESSIONS:
Keynote Speaker John Ratzenberger *Subject to change.
PA N E L D I S C U S S I O N Summit emcee SEAN LAFFERTY is the co-anchor of JET 24 Action News at 5, 5:30, 6 and 11 p.m. He also anchors Fox 66 News at 10 on sister station WFXP. Lafferty came to JET 24 in 1988 as City Hall reporter. Since then, his assignments have included interviewing newsmakers, celebrities, business and political leaders. He previously worked at radio stations WFUN/WREO in Ashtabula, Ohio and WAKC-TV in Akron, Ohio. He is a graduate of Kent State University. JAY D. BADAMS, PH.D., is the superintendent of Erie’s Public Schools. Dr. Badams has led the district through significant financial challenges, improved transparency and community relations, enhanced related arts instruction and embraced implementation of the Common Core State Standards in Erie’s 18 schools. Dr. Badams was selected by the PA Department of Education as a featured presenter at several Governor’s Institutes on Data-Driven Decision Making and served on the assessment work group of the Governor’s Commission for College and Career Success. JOEL A. BERDINE was appointed general manager of Global Supply Chain for GE Transportation in October 2009 and in April 2015 appointed to general manager for International Locomotive/Global Materials, Global Supply Chain. Prior to that, he served as general manager of Global Supply Chain for GE Sensing & Inspection Technologies. GE Transportation is a founding member of the ERMP. JAMES RUTKOWSKI JR. is the general manager of Industrial Sales & Mfg. Inc. in Erie. In this role, he is responsible for all facets of operations. He is a graduate of Gannon University, with a degree in mechanical engineering. He is heavily involved in various boards, committees, and task forces focused on economic, workforce, and community development. As a founding member and current secretary of the ERMP, Rutkowski is a passionate advocate for the manufacturing industry. ROGER SCHULTZ is the manager of Technical Training at LORD Corporation in Erie. He received his associate degree in mechanical engineering technology from Gannon University. After a 25-year career as a CNC machinist, Schultz became a technical trainer and was responsible for training fellow LORD employees around the world in various technical disciplines. He is a founding member of the ERMP and currently serves as vice chairman.
Recognizing the need to address the common misperceptions and old ideas about manufacturing jobs, this session will explore strategies to promote the career opportunities in modern manufacturing and improve the industry’s image. Participants will hear about successful initiatives to generate interest in manufacturing as a career possibility. KYLE KIRALY is the controller at Kiraly Tool and Die, Inc., located in Youngstown, Ohio. As a founding member of the Mahoning Valley Manufacturers’ Coalition (MVMC), he has spoken on changing the perceptions of manufacturing and the need for addressing the skills gap between credentialed programs and manufacturers’ needs. REBECCA MODER is the Pennsylvania Coordinator for the Oh-Penn Pathways to Competitiveness Project and serves as the staff lead to the Outreach & Marketing Action Team. She is a Certified Workforce Development Professional and Global Career Development Facilitator.
Informed Guidance and Assessments: Determining Interest, Aptitude, and Skills
Equally important to reaching young people and transitioning workers are those who influence career decisions — guidance and career counselors and teachers — and equipping them with the tools needed so they may be properly placed in their career pathway. In this session, participants also will learn about ways to increase awareness among guidance counselors and teachers, and tools available to determine areas of individuals’ interest within manufacturing. PAULA MCMILLIN is the executive director of Lawrence County School to Work, Inc. As part of the Oh-Penn Initiative, she directs the Educator in the Manufacturing Workplace in five counties.
Career Pathways with Stackable Credentials
As manufacturers compete with other industries and with each other for workers, it is increasingly important to identify ways to expand the pool of potential talent and ensure they are prepared with the skills needed to be successful. Presenters will share information about manufacturing readiness and skills-based hiring strategies that have demonstrated results in other communities across the country. Participants will explore opportunities to help employers get the right workers with the right skills and strategies to create more seamless career pathways for individuals to support lifelong learning. REBECCA KUSNER is the director of Strategic Planning and Policy at New Growth Group, a Cleveland-based regional planning and analysis firm with a specialized focus on labor markets and workforce development.
Building a Collaborative System: Industry, Education, and Community
Participants will learn how bringing together manufacturers, educators, workforce development professionals and other leaders has worked successfully to ensure that manufacturing remains a strong contributor to the regional economy. The session will explore the benefits of developing collaborative partnerships among partners and the need to work together in order to maximize and align resources around a common plan. ERIC KARMECY is the project manager of the Oh-Penn Pathways to Competitiveness project and is on the West Central Workforce Investment Board administration team. He assists in the planning, development and execution of workforce initiatives to achieve and exceed organizational goals and performance.
Workforce Retention: Advanced Workplace Practices
This session will focus on best practices for creating career pathways in the workplace. Participants will learn the steps necessary to uncover potential within the workforce, the secrets to decreasing turnover, and how to stay competitive in a marketplace where advancement opportunities rank higher than compensation for employee satisfaction and loyalty. GREG SMITH is a leadership training and talent assessment specialist. He is chairman of Compco Industries (steel fabrication), and president of Captured Moments Art, Inc. (photo-realism art and photography).
Work-Based Learning: Internships, Co-ops, and Apprenticeships
Hands-on training is a key aspect of preparing a skilled manufacturing workforce. The session will provide an overview of structured on-the-job training and apprenticeship programs while sharing examples and outcomes from manufacturers who have implemented these practices. Participants will explore strategies to increase the level of work-based learning and strengthen job-driven training. KEVIN S. SMITH is president of Vie Associates, LLC, a performance management company in Erie. He has developed and presented hundreds of workshops including his flagship program titled The Talent Grab®. MICHAEL GRIFFITH joined NWIRC in August 2013 as a manufacturing technology engineer following 15 years in various manufacturing roles including product development, sales engineering, and sales and marketing management.
www.ErieMfgDay.com
THANK YOU MANUFACTURING DAY SPONSORS!
2 YEARS
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When it comes to choosing a cleaning company for your business, cheaper is not always better. Cleaning should be looked at as an investment, not an expense. When cleaning has a cost-centered focus, it leads to contractors cutting corners in order to stay competitive, which results in inconsistent service. Employing a contractor that is focused on value and quality can help a business thrive. The benefits of a clean facility are highly impactful to a business, employees and customers. When cleaning is value-driven a contractor focuses on cleaning for health and appearance. A clean facility reduces employee sick days and other health-related issues, and it can boost employee morale. Cleaning is also very impactful on customers. Well-maintained facilities can help with lost sales, customer referrals and repeat business. The first thing a potential customer notices is the interior aesthetics of a facility, which could make or break their decision to do business with your company.
Did you know 94 percent of people would avoid a business in the future if they encountered a dirty restroom? Think about the money you are investing in your facility. Are you investing enough on cleaning? Are you getting what you are paying for, or are you receiving inconsistent service? Do you care about the stability and the future of your business, employees and customers? B&T Janitorial Services focuses on value and quality, and its professionals clean for health and appearance. Invest in the future of your business, employees and customers and give B&T a call today!
October 2015 > www.mbabizmag.com > 23
ERIEBANK’s focus is to serve as Your Business Banking Resource. We’re dedicated to helping you, from start to finish, achieve your business goals. We offer customized, full-circle solutions that save Commercial Banking Division Main Office • 2035 Edinboro Road • Erie, PA 16509
you time and money.
Phone (814) 868-7523 • Fax (814) 868-7524
We are empowered to make local-level decisions, resulting in faster turnaround times. Our well experienced commercial lenders take the time to listen to your unique, situational needs and offer the most appropriate advice to help keep your business on the track to success. If you’re searching for the right financial resource, we’re here for you.
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CO M PA N Y P R O F I L E
What’s It Worth to You?
Did you know there is an entire cable TV network dedicated to do-ityourself (DIY) projects? It encourages otherwise unskilled homeowners to wade out into the waters of “home-improvement,” by giving them tips and ideas on how to tackle simple and sometimes not-so-simple home improvement projects, all under the guise of “saving money.” However, there are some projects that are too dangerous for the DIY and should be left to the professionals. After all, no amount of savings is worth a crippling injury or an unsafe structure. Concerning your health and your property — what’s it worth to you?
Experience Matters
There are “do-it-yourselfers” in industry, as well, who think that anyone with a forklift can move machinery or perform rigging services. The traditional definition of rigging is the use of hoists and pulleys to move heavy loads. Today, its meaning has been expanded to include lifting, moving, transporting, positioning, pulling and securing of heavy loads, requiring specialized equipment and skilled personnel. There are numerous factors that must be considered before embarking on a rigging project, the first being: Do I have the right equipment? You can pound a nail with a shoe, but a hammer works much better! Secondly, do I have skilled people? Each machine and each application is different, and one false move can prove disastrous. Some machines are top-heavy; some machines require a boom instead of forks; and, some machines have composite bases that are easily damaged. If you damage the machine, who is going to pay for it? The decision to “do-it-yourself” is almost always prompted by a desire to save money, but can you afford to drop your machine or injure an employee? What’s it worth to you? On several occasions, ROG’S has been called upon to fix a “do-ityourself” mishap that resulted in much higher costs to the customer.
Rigging Experts
When it comes to moving expensive machinery, which is often very delicate and often very heavy, trust the professionals at ROG’S, INC., who, now in their second generation, have been moving machinery for more than 58 years. In the time it takes for others to “figure-out” how to handle the machine, ROG’S can have the machine moved and in place. Time is money! Why make a two-hour job into an all-day event? If you value your property and value your employees and value limited interruption to your production schedule, call the professionals at ROG’S, INC. After all, what’s all that worth to you? ROG’S, INC., is the area’s largest, and most fully equipped rigging company, employing a full-time crew of OSHA certified riggers and crane operators, and possessing late-model rigging equipment, such as specialized forklifts with lifting capacities to 80,000 pounds, mobile cranes with capacities up to 100 tons, and a fleet of air-ride tractors and trailers to haul the most delicate machinery. When purchasing your next machine, call ROG’S, INC. — your time and investment are worth it!
ROG’S, INC. 327 East 18th Street Erie, PA 16503 814/453-6781 (ROG’S) www.rogsinc.com October 2015 > www.mbabizmag.com > 25
THE NATURAL GAS SOLUTIONS YOUR BUSINESS NEEDS,
THE EXPERTISE IT DESERVES.
F
or more than 24 years, National Fuel Resources, Inc. (NFR) has provided thousands of businesses in Pennsylvania with competitively priced natural gas solutions tailored to specific customer needs.
We’ll work directly with your business in choosing an appropriate pricing strategy. Fixed Pricing – Ideal for a business that works best with a low risk strategy and within budget constraints.
Given the experience of our team and our unique assets, we believe no other energy supplier is better equipped to offer reliable supplies, competitive low prices and a comprehensive plan to control your energy spending.
Variable Pricing – A fluctuating market-based price. There may be advantages as market opportunities arise to convert a variable price to a layered or fixed price.
It may be a great time to lock in your natural gas fixed rate.
Natural Gas- NYMEX Futures Market Historical Daily Settlement Prices (chart assumes constant monthly volumes) $15.00
$13.00
$9.00
$7.00
$5.00
Date
Strip NG History - KW.XLS
814-825-1893
Apr-15
Aug-15
Apr-14
Dec-14
Aug-14
Dec-13
Apr-13
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Apr-12
Dec-12
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Aug-12
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Apr-05
Aug-05
$1.00
Dec-04
$3.00
Aug-04
Cost of Natural Gas (DTH)
$11.00
Layered Pricing – A mix of fixed and variable pricing. A perfect pricing blend allowing a business to lock in volumes while taking advantage of declines in natural gas costs.
MBAAds3_Layout 1 5/3/12 3:10 PM Page 3
Austin Every day E.E.Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”. It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you.
Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com
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8/10/15 11:06 AM October 2015 > www.mbabizmag.com > 27
Quality Coatings and Graphic Printing COATINGS
GRAPHICS
Scratch-and scruff-resistant durable plastic coatings can be applied to virtually any plastic surface. Our proprietary formulas were developed to add beauty and durability to bottles, jars, powder boxes, compacts, closures, deodorants and more. The plastic coating application process we use is precise and delivers quick and consistent finished products. Coatings include frost, softtouch, and translucent and opaque tints. UV coating for plastic protects and enhances and our glass coatings offer the highest aesthetic quality.
Any hot stamping or graphic custom printing job that you need can be successfully completed at Hanes Erie. Our Graphics Department features an ambient temperaturecontrolled environment, which gives us superior control over ink finishes. Our facility features state-of-the-art color-corrected metal halide lights which gives accurate representation of the true color of the inks. Hanes Erie’s Graphics Department Specializes in:
• high speed cylindrical and oval screen printing, which include conventional and ultra-violet cured inks
• hot stamping, including the vertical method, cylindrical
Hanes Erie, Inc. 7601 Klier Drive Fairview, PA 16415 Phone: 814/474-1999
roll-on and blow-stamping of bottles
• pad printing in single or multiple colors • pressure sensitive labeling
www.haneserie.com
Just another member of your team! Helping manufacturers improve productivity & technology performance.
• Manufacturing Technology Acceleration – next generation applied technology research & development services • Advanced Manufacturing Apprentice Program – connecting university STEM students with project-based manufacturing needs • Lean / Continuous Improvement – cost reduction consulting services & training • CoreValue Software – advanced business valuation & planning tools • Facilitated Management Services – solutions and projects that link you with high-quality regional experts • IT KickStart – minigrants and advisement to help with websites, network systems, cybersecurity, server virtualization, and ERP implementation projects
Contact us for more information: (814) 898-6893 • www.nwirc.org 28 < www.mbabizmag.com < October 2015
OntheHill
DEPARTMENTS > Contact: Lori Joint
Legislators Respond to Call for Action Manufacturing is the backbone of our nation’s economy. The industry employs more than 12 million people. Recently, the Manufacturer & Business Association (MBA) spoke with a few of our elected officials at the federal and state levels to get their input on what can be done to make sure manufacturing continues to thrive. Here’s what they said: MBA: One of the biggest challenges facing American manufacturers is our increasingly burdensome regulatory environment. What are your suggestions for the manufacturing community, and how can we encourage growth in the manufacturing industry?
U.S. Senator Pat Toomey, R-PA
I have the honor of regularly meeting business owners in Erie and across the Commonwealth. It’s great to hear firsthand about what the federal government should be doing to help grow the economy, create jobs and increase paychecks for all Pennsylvanians.
Manufacturing goods — and doing it better than anyone else in the world — is an American hallmark. As a member of Congress, I consider it a paramount priority to protect the manufacturing jobs we’re blessed with in western Pennsylvania and to assist with the creation of new ones.
When I sit down with these job creators, I often hear the same suggestion: please cut the excessive red tape from Washington! And I couldn’t agree more.
Last year, I co-sponsored both the Workforce Innovation and Opportunities Act and the Revitalizing American Manufacturing and Innovation Act to train new workers and strengthen the next generation of manufacturers. Each bill was passed by Congress with bipartisan support and was ultimately signed into law by President Obama.
We all want a clean environment and safe workplaces, and we also want to prevent dangerous foods or drugs from entering the marketplace. Smart, efficient regulations, therefore, have a role in our society. But lately, it’s clear that Washington’s regulatory reach is going way too far.
Under the Obama administration, we’ve seen sweeping new EPA rules that threaten our state’s agriculture and energy jobs and will increase the price of electricity. We’re facing ObamaCare mandates that discourage small companies from hiring more full-time workers and are driving up the price of health-care coverage. And we’ve seen waves of other new regulations that are a stifling, wet blanket on hiring, investment and economic growth. This overregulation is not just causing economic damage; it’s also an unfair picking of winners and losers by Washington bureaucrats. Let’s take EPA’s ethanol mandate for gasoline. This harmful “Renewable Fuel Standard” creates many losers: it raises feed costs for dairy farmers, drives up the cost of gas and food for consumers, damages the environment, and threatens Pennsylvania jobs. And who wins by forcing ethanol into our gas tanks? The winners would be politically connected agribusinesses. Is that fair? It’s time for us to say enough is enough. Lawmakers in Washington need to wake up to the problem of excessive red tape and push for commonsense regulatory reforms. Such reforms can kickstart the economy for all Pennsylvania business owners and workers, not just those who are the most politically connected.
U.S. Representative Mike Kelly, R-3rd District
Earlier this year, I proudly supported the enactment of Trade Promotion Authority. This powerful partnership between the legislative and executive branches will enable us to guarantee the strongest trade agreements possible for our nation’s manufacturers. Just as certain federal policies can play a positive role in boosting domestic manufacturing industries, many federal regulations can very much hurt them. For example, the Environmental Protection Agency’s new “Clean Power Plan” seeks to eradicate the use of coal, which helps give American manufacturing its global edge against foreign competitors. According to the National Association of Manufacturers, this plan “could singlehandedly eliminate this competitive advantage by removing reliable and abundant sources of energy from our nation’s energy mix.” Commonsense legislation like my Coal Country Protection Act and the Regulations from the Executive in Need of Scrutiny (REINS) Act would stop harmful regulations like this in their tracks and allow our manufacturers to keep growing and building to their fullest potential. Enacting comprehensive, pro-growth tax and regulatory reform will also support this mission. These achievements are “heavy lifts,” to be sure, but I am absolutely committed to fighting for them.
MBA: Manufacturing is a huge part of the economy in Pennsylvania. What can manufacturers do to stay strong and remain in Pennsylvania? How can we attract more manufacturers to Pennsylvania? Pennsylvania has a long and proud history of being a leader in business development. From Drake’s Well in Titusville to our steel mills and tool and die shops, they helped build our great nation and established our place in the world. Pennsylvania continues to be home for many innovative businesses, and we are in position for additional economic growth sparked by natural gas operations in our state.
State Senator Michele Brooks, R-50th District
However, the impediments to our economy are the same ones that consistently limit Pennsylvania’s competitiveness in the national and international marketplace. We must improve Pennsylvania’s competitiveness by simplifying our tax structure and counteracting the overreaching state and federal regulations that are imposed on businesses and agriculture.
When businesses encounter a problem, Pennsylvania must work with them, not immediately take an adversarial role and threaten to shut them down. Most of these regulatory hurdles are set with the best of intentions. However, as often is the case, cookie cutter solutions are often impractical and counterproductive. In one case, a constituent wanted to construct outbuildings only to find the costs of complying with storm water regulations were higher than the cost of buying the property. In another instance, a farmer removed stones that had washed into a creek on his property by storms and were causing flooding to his cornfields. He was fined by a state agency for his actions. In response to that, I introduced Senate Bill 444 to exempt farmers clearing streams of debris on their property from the cumbersome permitting process. Regulations must be based on science and common sense and have true practical applications. The real danger is that most are set by regulators who are not directly accountable to the public. These decisions should be made by elected officials who are accountable and are in touch with those directly impacted by these rules.
This Commonwealth is fortunate to have many success stories of how the state is adapting to the changing times, and there is little doubt that our manufacturers still represent an essential economic driver. The single most important element in that success is a skilled workforce, and it has been clearly demonstrated that industry growth is stymied due to lack of a specific workforce. Partnerships at both the public and private levels must make a commitment to re-assemble the component parts requisite to the regeneration and formation of a skilled workforce. Additionally, existing businesses must make strides to launch themselves into the future in areas like technology and innovation, diversifying to survive. The public sector can, and should, support those efforts to assist in moving toward the next century of competitiveness. A combination of incentives, investments and public-private partnerships can give the Commonwealth’s businesses the stimulus they need to innovate in the new economy. Pennsylvania must also continue to utilize and employ the collective brain power found at the various universities across the Commonwealth. State Senator Sean Wiley, D-49th District
Universities are surely drivers of economic innovation, and partnerships between education and industry should serve as the new norm. There is no single success formula for the Commonwealth’s economy; encouraging entrepreneurship, supporting existing businesses, ensuring an educated constituency and attracting new industry to Pennsylvania will help make our state economically viable for the decades to come. As elected officials, we can act as public advocates for our entrepreneurs and business leaders, helping to establish a culture that values them as central to the durability of this economy in the 21st century and beyond. Our future is too important not to.
October 2015 > www.mbabizmag.com > 29
ERIE
MANUFACTURERS AMERICAN TINNING & GALVANIZING Address: 552 West 12th Street PO Box 1599 Erie, PA 16512 Phone: 814/456-7053 Website: www.galvanizeit.com and www.carlsonerie.com Designs/builds custom, plastic tanks, baskets and duct work. AMERICAN TURNED PRODUCTS Address: 7626 Klier Drive Fairview, PA 16415 Phone: 814/474-4200 Website: www.atpteam.com Specializes in contract precision machining of high-volume, complex parts for the automotive industry. INDUSTRIAL SALES & MANUFACTURING 2609 West 12th Street Erie PA 16505 Phone: 814/833-9876 Website: www.ismerie.com Quality Contract Machining, Fabrication and Assembly for OEMs since 1967. MATRIC Address: 2099 Hill City Road Seneca, PA 16346 Phone: 814/677-0716 Website: www.matric.com Provides electronic contract manufacturing services, contract design, cable and electromechanical assemblies. MCINNES ROLLED RINGS Address: 1533 East 12th Street Erie, PA 16511 Phone: 814/459-4495 Website: www.mcinnesrolledrings.com Manufactures seamless rolled ring forgings in carbon, alloy and stainless steels. 30 < www.mbabizmag.com < October 2015
MICRO MOLD Address: 4820 Pittsburgh Avenue Erie, PA 16509 Phone: 814/838-3404 Website: www.micromolderie.com Specializes in design and fabrication of the highest quality plastic injection molds. NORAMPAC Address: 4444 Walden Avenue Lancaster, NY 14086 Phone: 814/673-9144 Website: www.cascades.com Specializes in corrugated packaging and design, displays, retail ready packaging, stock boxes. PARKER HANNIFIN Address: 201 Titusville Road Union City PA 16438 Phone: 814/438-3821 Website: www.Parker.com Produces hydraulic and pneumatic couplings in a variety of sizes, materials, and end configurations. PLASTIKOS Address: 8165 Hawthorne Drive Erie, PA 16509 Phone: 814/868-1656 Website: www.plastikoserie.com Manufacturer of plastic parts and components for various markets (i.e. Medical, Telecommunications, electronics, automotive, etc.) with injection molding machines. PORT ERIE PLASTICS Address: 909 Troupe Road Harborcreek, PA 16421 Phone: 814/899-7602 Website: www.porterie.com Total Solutions in Plastics Processing â&#x20AC;&#x201D; Complete program management from mold building to distribution warehousing.
Manufacturing is the backbone of our national and state economies. According to statistics, manufacturers in Pennsylvania account for 12 percent of the total output in the state, employing 9.72 percent of the workforce. Total output from manufacturing was $77.37 billion in 2013. In addition, there were 565,200 manufacturing employees in Pennsylvania in 2014. Below are a few of the manufacturers that are proud to manufacture in PA and their community supporters.
REHRIG PACIFIC Address: 1738 West 20th Street Erie, PA 16502 Phone: 814/455-8023 Website: rehrigpacific.com Manufactures recycle bins, milk crates, dairy crates, to name a few.
TECH MOLDED PLASTICS, INC. Address: 1045 French Street Meadville, PA 16335 Phone: 814/724-8222 Website: www.ttmp.com Tech specializes in high performance molding of engineered resins for complex applications.
MANUFACTURING DAY SUPPORTERS EASTERN ALLIANCE INSURANCE Address: 25 Race Ave., Lancaster, PA 17603 Phone: 855/533-3444 Website: www.eains.com A “best in class” provider of workers’ compensation products and services. ELECTRONIC COMMUNICATION SYSTEMS Address: Erie County, PA Phone: 814/455-4181 Website: www.ecsphonesystems.com Specializes in on-premise, virtual and hosted Mitel phone systems, unified communications. EDINBORO UNIVERSITY PORRECO COLLEGE Address: 2951 West 38th Street Erie, PA 16506 Phone: 814/836-1955 Website: porreco.edinboro.edu Porreco College offers career-ready education at true Community College rates.
ERIE REGIONAL CHAMBER & GROWTH PARTNERSHIP Address: 208 East Bayfront Parkway, Suite 100 Erie, PA 16507 Phone: 814/454-7191 Website: eriepa.com Nonprofit organization that leads the effort to identify key regional initiatives that promote economic health while providing the leadership for business attraction, retention, and expansion.
LOGISTICS PLUS Address: 1406 Peach Street Erie, PA 16501 Phone:1-866-564-7587 (1-866-LOG-PLUS) Website: www.logisticsplus.net Specializes in North American transportation, international logistics, warehousing and supply chain solutions. MACDONALD, ILLIG, JONES & BRITTON Address: 100 State Street, Suite 700 Erie, PA 16507 Phone: 814/870-7600 Website: www.MacDonaldIllig.com MacDonald Illig provides legal counsel to manufacturing and business clients. NATIONAL FUEL RESOURCES, INC. Address: 349 East Grandview Blvd. Erie, PA 16504 Phone: 814/825-1891 Website: www.nfrinc.com Deregulated natural gas supplier providing cost effective natural gas pricing to commercial, industrial and institutional clients throughout northwestern Pennsylvania. NORTHWEST SAVINGS BANK Address: 800 State Street Erie, Pa 16501 Phone: 814/461-6999 Website: Northwestsavingsbank.com Expert in all business banking products.
October 2015 > www.mbabizmag.com > 31
HR Connection SURVEY REVEALS PARENTS’ MISCONCEPTIONS ABOUT STEM CAREERS IN MANUFACTURING Most parents — a whopping 89 percent — think the average hourly wage for manufacturing jobs is $22 an hour or less, when the industry average is actually $12 higher. It’s just one of several misperceptions revealed in a new survey, conducted for Alcoa Foundation in partnership with the nonprofit SkillsUSA. The 2015 Parents’ Perceptions of Manufacturing Survey aims to debunk stereotypes about careers and education within science, technology, engineering and math (STEM) fields and educate people about the rewarding job opportunities in the manufacturing field. The survey found that 90 percent of parents worry about their child’s future career options given the state of the U.S. economy, and 87 percent believe STEM education is critical for economic success. However, 34 percent do not think jobs in the manufacturing or trade industries require college or higher education, and only 12
percent believe jobs in manufacturing are “recession proof.” In fact, even though 65 percent of parents say they are familiar with current career opportunities in manufacturing, many are unaware of all of the prospects. The survey also cites that 89 percent of parents estimate the average hourly wage of manufacturing jobs to be between $7 and $22 per hour. In reality, the average is much higher — $34 per hour — according to the Manufacturing Institute. Alcoa Foundation’s new survey, conducted in May 2015 among more than 1,000 parents, is part of its ongoing commitment to educate tomorrow’s leaders for careers in manufacturing and engineering. STUDY ADDRESSES STATE OF MANUFACTURING TECHNOLOGY IN 2015 Plex, a leader in cloud ERP (enterprise resource planning) for manufacturing, recently unveiled the results of a survey examining the use of technology by more than 130 top manufacturing organizations.
The Plex State of Manufacturing Technology study finds a host of emerging technologies converging on the shop floor to transform how things are made, track products across a global supply chain, streamline materials handling, and improve shop safety and product quality. Among the findings: • 40 percent of respondents drew a direct correlation between cloud technologies and their ability to drive innovation in their own products over the next five years; • 80 percent use consumer mobile devices such as tablets and webcams to access, stream and share information across large production facilities and global supply chains; and, • 55 percent now use IP-enabled tools and machines, which automatically adjust to meet product specifications and capture rich, real-time data for traceability. The full report is available at www.plex.com.
Manufacturing Day (MFG DAY) addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry. Join with fellow manufacturers across the country in marking the fourth annual Manufacturing Day on Friday, October 2, 2015. Hosting an open house provides manufacturers with an opportunity to tell their company’s story, dispel outdated myths about manufacturing, inspire a new generation of manufacturers, and connect with their communities. In opening your plant to visitors, you can also open minds — expanding knowledge about and improving public perception of careers in manufacturing, as well as showcasing manufacturing’s value to the U.S. economy.
Visit www.ErieMfgDay.com to schedule your company’s Manufacturing Day event or to access their easy to use resources.
www.ErieMfgDay.com 32 < www.mbabizmag.com < October 2015
DEPARTMENTS > Contact: Patty Welther
Lean and Six Sigma: Which is Best for You? Lean and Six Sigma have been credited with many manufacturing improvements, and, in most businesses, if you are not improving, you are likely losing ground to competition. Like many tools, Lean and Six Sigma are broadly useful and complementary, and they are often referred to interchangeably but they really aren’t the same. Skilled problem solvers may choose tools from each, but understanding the differences could be enlightening when deciding if Lean or Six Sigma are right for your company. Lean and Six Sigma can each be thought of as a philosophy in the broader sense and as a set of tools and techniques in a more practical sense. Lean’s philosophy is about increasing speed by reducing time spent on low or nonvalue added activities and applying that time to the more important value-added activities. For example, if machinists could spend more of their shift time machining parts, more parts would be processed and throughput speed through this portion of the process will have increased. Six Sigma’s philosophy is about implementing improvements that reduce process variation based on a deep understanding of the root
causes. An important secondary principle is basing problem solving on a highly rational, detailed and data-driven process commonly known as DMAIC (Define, Measure, Analyze, Improve and Control). An example would be to determine the optimal machine maintenance that results in fewer machined parts being out of specification caused by tool wear. Lean and Six Sigma each have a variety of techniques and tools that help identify, quantify, analyze and determine improvements to make. The Lean tools tend to identify and drive improvements that are recognized as “best practices” among many businesses. By contrast, the Six Sigma tools are better suited for more unique and complex problems that require more “out of the box” solutions. Lean: • Easiest to learn and fast to apply • Leverages generally accepted “best practices” • Ideal for higher volume, repeatable processes
• Complex problem solving based on deep understanding of “root cause” • Promotes more creative solutions that are not otherwise commonly known Most companies would benefit from Lean and Six Sigma, but understanding their differences should help you determine which one fits best for you. Together, Lean and Six Sigma are most powerful, and starting with Lean is usually the best so that you can see fast results and drive enthusiasm for more. For more information on the Association’s upcoming Lean and Six Sigma courses, visit www. mbausa.org. Ray Davis is an associate at Supply Velocity and an instructor for the Manufacturer & Business Association’s Lean Operations Champion and Six Sigma Greenbelt workshops.
Six Sigma: • Methodical, highly data driven and slower to learn and apply
US – UK – Brazil – Mexico Family Owned since 1956 by the Prischak Family, Plastek is a Global Plastics Manufacturer with locations in Erie, PA – Hamlet, NC – Mansfield, United Kingdom – Indaiatuba Brazil – Queretaro, Mexico. Employing more than 1,700 people worldwide, Plastek manufactures a wide variety of Cosmetics, Laundry Care, Home Care, Personal Care, Food & Beverage and Pharmaceutical Products around the world.
(Front Row): Dennis Prischak – President/CEO, Joseph Prischak - Chairman, Douglas Prischak – VP of Global Tooling & Engineering (Back Row): Daniel Prischak – VP of Manufacturing, Donald Prischak - Sales
October 2015 > www.mbabizmag.com > 33
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Bethesda Children’s Home Meadville, PA Leadership Center—Erie, PA Trinity Center—Erie, PA
New CEO Named
Change is in the wind Since 1919, Bethesda Children’s Home has been caring for Pennsylvania children and families by providing innovative approaches to treatment that have been research tested and results driven. By continually evaluating and responding to changing community needs, Bethesda remains one of Pennsylvania’s leading providers of behavioral and mental health services for children, youth, and families. Serving nearly 500 kids a day through facilities in Erie and Meadville, Bethesda provides a continuum of care with solutions to some of life’s toughest problems. Celebrating almost a century of service to Pennsylvania children, youth, and families, Bethesda continues to respond to the ever changing needs of society. Bethesda’s current expansion project at its school in Meadville will help ensure we meet the growing demands of local school districts. The 19,000 square foot school expansion will include six additional classrooms, office space, a new library, and a new cafeteria. In Erie, Bethesda has completely transformed the former Johnson & Flick Tire Center on West 18th Street to a state of the art Leadership Center for teens and young adults, including a dance and recording studio, and private rooms for music lessons. Just down the block from the Leadership Center, Bethesda Trinity Center for the younger children is getting a complete makeover as well, including renovations to the Kids Café, new bathrooms, and an enclosure of the current sports court to provide year round recreation for program participants.
Bethesda named long time Operations Director, George Trauner, as the new Chief Executive Officer. Trauner holds a Master’s Degree in Organizational Leadership from Mercyhurst University and has been with the organization for more than 21 years. Trauner and his wife Holly live in Crawford County with their four children. He serves as Chairman of the Board for the Tri-County Intermediate Unit 5 in Edinboro and is a School Board Director at Union City School District.
Legal Q&A WHAT ARE OUR OSHA RESPONSIBILITIES TO THE TEMPORARY WORKERS AT OUR SITE? Host employers need to treat temporary employees as they treat existing employees. Employers must assure that all workers — whether temporary or existing — are provided with a safe workplace and all required training and protections. Temporary staffing agencies and host employers share control over the employee and are, therefore, jointly responsible for temp employee’s safety and health. IF AN OSHA COMPLIANCE SAFETY AND HEALTH OFFICER ARRIVES UNANNOUNCED TO BEGIN AN INSPECTION, CAN WE REQUEST THAT THE OFFICER RETURN LATER OR WAIT TO START THE INSPECTION UNTIL THE CHOSEN REPRESENTATIVE WHO WE WANT TO MANAGE THE INSPECTION IS AVAILABLE?
Yes, the employer can request that the CSHO (certified safety and health official) return at a later time or wait a reasonable amount of time until the employer’s chosen inspection representative is available. DOES OSHA REQUIRE FIRE DRILLS? There is no OSHA regulation that requires fire drills; however, they are an effective method of training employees to ensure that everyone knows what they must do in case of an emergency. At 29 CFR 1910.38 and 1910.39, OSHA indicates the requirements for emergency response and fire prevention plans, but these do not speak directly about the need for fire drills. Since places of employment vary greatly throughout the country, some places would benefit greatly from fire drills, while others might not.
HAVE A LEGAL QUESTION? GET ANSWERS! Manufacturer & Business Association members can call our certified HR specialists and labor and employment law attorneys anytime, no charge. Call our FREE HR and Legal Hotline today at 814/833-3200 or 800/815-2660!
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DEPARTMENTS > Contact: Tammy Lamary-Toman
New Rules Proposed to ‘Clarify’ OSHA Recordkeeping Obligations Recently, the Occupational Safety and Health Administration (OSHA) issued a proposed rule intended to clarify an employer’s obligation to make and maintain an accurate record of each recordable injury and illness. Under the current rules, an employer must keep records of injuries and illnesses for five years and must provide these records to OSHA during workplace inspections. However, the Act limits the administration’s fining power to a six-month statute of limitations. If finalized, the new rules will allow OSHA to fine an employer for failing to record an injury or illness even outside of its six-month inspection time frame. The proposed rule was issued in light of the D.C. Circuit’s decision in AKM, LLC, dba Volks Constructors v. Secretary of Labor, 675 F.3d 752 (D.C. Cir. 2012) (known as the Volks decision) to clarify OSHA’s long-standing position that the duty to record an injury or illness
continues for as long as the employer must keep records of the recordable injury or illness. OSHA has proposed revisions to the titles of some of the existing sections and subparts in 29 CFR Part 1904, as well as changes to the text of some of the existing recordkeeping requirements. According to OSHA, the proposal would not require employers to make records of any injuries or illnesses for which records are not currently required. OSHA contends that these proposed amendments add “no new compliance obligations.” While OSHA says this rulemaking will not impose any new reporting obligations, it is critical that employers understand that their obligation continues for the record retention period and that OSHA can issue citations for a much longer period of time than what many employers, and the D.C. Circuit Court, have
interpreted. Should OSHA issue a final rule substantially similar to the proposed rule, employers can expect OSHA to carefully review OSHA 300 recordkeeping logs kept for the past five years and to issue citations for any omissions or inaccuracies in the logs. For more information about this new rule, contact me at 814/833-3200, 800/815-2660 or tlamary@mbausa.org.
Tammy Lamary-Toman, JD, PHR is labor and employment law counsel for the Manufacturer & Business Association.
EVERYONE MAKES PROMISES, BUT AT INSURANCE MANAGEMENT COMPANY WE DELIVER IMC has provided us with excellent service since our relationship began in 1999 and has performed admirably for MFG in every respect. Richard Morrison, President/CEO Molded Fiber Glass Companies 2100 Teammates, Fiber Glass Reinforced Plastics
IMC plays a vital role in our global risk management program. I enjoy working with the team because I always receive prompt, reliable, and accurate advice. They are committed to providing quality service with integrity and a client-driven approach which delivers peace of mind every single day. Joe Fisher, Director, Business Analysis and Assistant Treasurer LORD Corporation 3000 Employees, Adhesives, Coatings, Motion Management Devices,and SensingTechnologies
IMC consistently provides us quality, personal service with world-class resources that support our growth, both domestically and internationally. Michael J. Dzurik, Vice-President Finance/CFO Plastek Industries, Inc. 1081 Employees, Plastic Injection Molding,Tool & Die Mfg.
Managing your business in an efficient, effective way creates opportunities for continuous improvement and profitability--another reason we have IMC on our team. John Hilbert, President & CEO PHB, Inc. 504 Employees, Die Casting, Machining, Plastics & Rubber
IMC has done an excellent job in handling our property and workers’ compensation insurance needs. Given the constantly changing insurance market, we rely on their experience and expertise to bring us the best possible options in insurance coverage as well as keeping us current as to any new products that might be beneficial to our Company.
We are happy with our relationship with IMC! We feel they are a true partner by helping us manage our business risk in a very professional and friendly way.
John T. Johnson, President Port Erie Plastics 450 Employees, Plastic Injection Molding IMC’s highly dedicated and well qualified team has consistently delivered on its commitment to provide the best value and service to our company for over thirty years. Simply put, they are best in class.
Robert Marut, CPA, Vice President of Finance C&J Industries 325 Employees, Plastic Injection Molding and Contract Mfg.
The Bloomstines
Doug Currie, President Erie Press Systems 68 Employees, Manufacturer of Hydraulic & Mechanical Presses IMC has been our insurance partner for over 20 years and continues to provide professional guidance for our insurance needs. Robert A. Johnson, Treasurer Ridg-U-Rak, Inc. 250 Employees, Mfg. of High Density Storage Rack and Specialized Rack Systems
IMC guys are nuts about risk management…so I don’t have that worry. Tim Shuttleworth, President & CEO Eriez Manufacturing Company 1,000 Employees, Magnetic, Vibratory and Metal Detection Solutions IMC continues to help us in innovative ways to save on insurance costs without sacrificing coverage/value. David K. Galey, Vice Pres. Greenleaf Corporation 325 Employees, Ceramic & Carbide Cutting Tools
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October 2015 > www.mbabizmag.com > 37
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People Buzz THE HARTMAN GROUP WELCOMES ACCOUNT EXECUTIVE The Hartman Group recently announced the addition of Joseph Gaetano to the Hartman team as an account executive. He works in the Williamsport office with the commercial lines team providing service to the firm’s property and casualty clients. Future plans are for Gaetano to provide assistance with surety bonds.
with offices in Williamsport, State College and Duncannon. Hartman operates commercial employee benefit, commercial property and casualty, financial services, and personal lines divisions
accounting and finance from Syracuse University and completed numerous American Institute of Banking courses related to credit, accounting and business development.
NORTHWEST SAVINGS BANK ANNOUNCES APPOINTMENTS Stephen R. Carman has been promoted to senior vice president and commercial lending team leader of Northwest Savings Bank’s Erie region.
In addition, Michael W. Bickerton has been named executive vice president, Commercial Lending of Northwest Bank in Warren, Pennsylvania.
Gaetano is originally from the State College area and earned a degree in business administration, with a marketing emphasis and Spanish minor from Susquehanna University. He is returning to the area after serving as a Commercial Lines Underwriter with Cincinnati Financial Corporation for the past two and half years.
In his new role, Carman will work with his team of commercial lenders to help meet the financing needs of current and prospective business clients throughout Erie County. In 2010, he joined Northwest as a commercial lender in Erie and Crawford counties after more than 35 years of banking experience. He was named regional credit officer in December 2011.
The Hartman Group consists of The Hartman Agency, Inc., Hartman Employee Benefits, Inc., and Hartman Financial Services
Carman received his bachelor’s degree in
In his role, Bickerton will oversee Northwest’s Commercial Lending Department, which provides a full range of commercial financing options across the bank’s footprint. Bickerton joins Northwest through the recent acquisition of Lorain National Bank (LNB) where he served as chief credit officer. He has 33 years of experience in commercial banking, middle market lending, credit policy and risk management. Northwest Bank operates 182 community
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40 < www.mbabizmag.com < October 2015
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banking locations in Pennsylvania, New York, Ohio and Maryland. Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank. FIVE MACDONALD ILLIG ATTORNEYS AMONG BEST LAWYERS IN AMERICA The law firm of MacDonald Illig Jones & Britton LLP in Erie, Pennsylvania recently announced that attorneys James D. Cullen, Roger H. Taft, W. Patrick Delaney, Mark J. Shaw and Craig Murphey, partners at the firm, have been selected by their peers for inclusion in The Best Lawyers in America® 2016. Attorney Cullen, former chair of MacDonald Illig’s Trusts & Estates Practice Group, is recognized for his work in the area of trusts and estates planning and administration. Cullen concentrates his practice primarily in the
areas of estate and tax planning, charitable gifting techniques, estate and trust administration and elder law. Attorney Taft, co-chair of MacDonald Illig’s Labor & Employment Practice Group, is recognized for his work in the area of commercial litigation. A trial lawyer at MacDonald Illig, he concentrates his practice on commercial litigation and employment litigation including employment discrimination and wrongful discharge cases. Attorney Delaney, chair of MacDonald Illig’s Litigation Practice Group, is recognized for his work in the areas of commercial litigation and construction litigation. His practice is concentrated in the area of commercial litigation, including such matters as contract
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claims, shareholder or partner disputes, construction claims, property damage claims, business torts and Uniform Commercial Code disputes. Attorney Shaw, chair of MacDonald Illig’s Environmental Law Practice Group, is recognized for his work in that area of the law including environmental litigation, compliance and permitting matters. Attorney Murphey, chair of MacDonald Illig’s Insurance Law Practice Group, is recognized for his work in the areas of personal injury litigation and insurance law. He is a civil litigator who concentrates his practice in the areas of insurance coverage, insured defense, arbitrations, trials and appeals.
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