CMYK
BUSINESS
SECTION
timesleader.com
THE TIMES LEADER
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SUNDAY, JUNE 17, 2012
RON BARTIZEK BUSINESS LOCAL
Coddle wealthy and we’ll all become poorer
AP PHOTO
John Maurer, chief of operations for Esterline & Sons Manufacturing, displays one of the parts they produce at the manufacturing facility.
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SMALL TALK
Experiencing an upswing in business By JOYCE M. ROSENBERG AP Business Writer
NEW YORK — Small businesses that make machines and components for other manufacturers are experiencing an upswing that could be a sign of things to come for the broader economy. The industries fueling the demand vary. In some cases, business is coming from medical device makers, which are expected to see increasing growth as baby boomers age and need more medical care. An uptick in orders is coming from oil and gas producers supplying energy to growing economies in countries such as China and India. And then some are getting a pop in sales from aerospace manufacturers that are busy building fuel-efficient aircraft and engines and need special parts to get the job done. As different as these manufacturers may be, they have two things in common: Their industries are expected to see continued growth and they’re investing in expensive machinery that can cost millions of dollars. This small manufacturer machinery boom may seem at odds with an economy that is suffering from slow job growth following the worst recession many can remember. But the increase in demand for gear that businesses use to make a variety of machines, parts, tools and devices is a sign that companies are more confident and are willing to spend. They’re also getting loans from banks to buy the equipment — evidence that lenders are feeling more secure. Last year, industrial and materials manufacturers had a 37 percent increase in big equipment purchases, according to PayNet, a company that tracks lending to small businesses. That compares to an average of 17 percent for all the industries PayNet follows. “We’re positioning ourselves now to have the capacity to respond quickly,” says Pat Pastoors, general manager of Dynamic Sealing Technologies, which last month spent $450,000 on new
DON CAREY/ THE TIMES LEADER
Lissa Bryan-Smith, chief administrative officer of the Geisinger Regional Ambulatory Campus in South Wilkes-Barre, will receive the Athena award, presented by the Greater Wilkes-Barre Chamber of Commerce, at a luncheon on June 26.
Honored to serve By JERRY LYNOTT
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jlynott@timesleader.com
ILKES-BARRE – It’s still a mystery to Lissa Bryan-Smith who nominated her for the Athena award. • She does, however, have an idea why she was chosen to receive it. • “I think I’m pretty involved in the community. I sit on several
not-for-profit boards,” said Bryan-Smith, who is the chief administrative officer of the Geisinger Regional Ambulatory Campus in South Wilkes-Barre.
Still the 58-year-old executive expressed surprise in being chosen, given the short time she’s been here. She and her husband Richard Smith, a retired speech therapist, moved to a renovated old house on South Franklin Street in WilkesBarre from Lewisburg in 2005 and have offered their time and talents to the region’s arts, social and professional organizations. “The women that have had that award in the past, many of them
have very long histories in this community,” she said. “They’ve been strong leaders in the community, volunteers to their work places. It’s just so amazing to get that.” Bryan-Smith will receive the award presented by the Greater Wilkes-Barre Chamber of Commerce at a luncheon on June 26. Nominees are judged on their business accomplishments, community service, memberships and achievements, and on their efforts to help women reach their full lead-
ership potential. Bryan-Smith started her career in health care as a registered nurse and moved to the management side in the early 1990s. She’s been with the Geisinger Health System for 31 years. The nursing background keeps her grounded. “First of all it reminds me of what we do every day,” she said. It also keeps her focus on the paSee HONORED, Page 2D
Pride of Place, I Believe awards to also be presented In addition to the Athena award, the Greater Wilkes-Barre Chamber of Commerce will present its Pride of Place and I Believe awards at a luncheon on June 26. The Pride of Place Awards, sponsored by Geisinger and Geisinger Health Plan, honor a business, industry, or organization that has improved the physical environment. There are six Pride of Place winners in four categories: Interior Design McCann School of Business &
IF YOU GO The Greater Wilkes-Barre Chamber Awards Luncheon will be held June 26, from 11:30 a.m. to 1:30 p.m. at Genetti’s Best Western Hotel & Conference Center, W. Market St., WilkesBarre. The cost is $40 for chamber members and $50 for non-members. To reserve a place, call 570-823-2101, ext. 113, email Candice@wilkesbarre.org or fax to 570-822-5951.
Technology, Wilkes-Barre Township. Renovation of 23,896 square feet at 264 Highland Park Boulevard included two medical
labs, a massage therapy lab, several classrooms, a library, student lounge and a bookstore. Building Blocks Learning Center, in Plains Township. The school added 3,200 square feet to the existing structure, with a ramp connecting the two wings. Four additional classrooms were designed specifically for toddlerage children. Offices were added, creating a new corporate headquarters. Restoration/Renovation/ReSee AWARDS, Page 2D
See UPSWING, Page 2D
Cater to Dear Old Dad with these Father’s Day deals, promotions IT’S FATHER’S DAY and plenty of local eating places and attractions are catering to Dear Old Dad. Camelbeach will be celebrating with a discount ticket promotion that focuses on family time and savings. The Tannersville water park, with 37 rides, slides and attractions, making it the biggest waterpark in the state, is offering a free admission ticket for dads when purchased with another general admission ticket. Take dad out to Friendly’s for a free sundae today. Use this coupon for a buy-one, get-one, free threescoop sundae: static.green1020.com /FR/2012/FR_061112_fathersday/coupon.gif This summer, Pocono Raceway is giving you the chance to treat your
ANDREW M. SEDER STEALS & DEALS dad like a king at the Aug. 5 Pennsylvania 400 NASCAR race. Through Monday at noon, you can buy concourse tickets for just $22.50 or you can get terrace tickets for $60. Get yours today by going to tinyurl.com/coefhry and entering promo code “DAD” or by calling 1-800-RACEWAY to speak directly with one of the track’s ticketing representatives. Quiznos has a coupon for a free small sub when you purchase another sub of equal or greater value and a beverage. It’s good through July 7 and can be printed from here: www.quiznos.com/fathers-daycoupon.aspx?utm_source=qclub&utm_medium=email&utm_cam-
paign=fathersday If dad likes Domino’s Pizza, today’s the day to order it for him. Do it online and get 50 percent off the menu price of any pie. Go here to start the process: express.dominos.com/order/olo.jsp Dads are Mr. Handy around the house and here’s one for those looking for a project that will save the family money: It just got easier to save money on utility bills in Lackawanna and Luzerne counties, thanks to the E-power rebate program from PPL Electric Utilities. When consumers buy the new GE GeoSpring Hybrid Water Heater, they are eligible to apply for a $300 rebate, reducing the $1,199-$1,299 cost of the water heater. The ENERGY STAR-qualified water heater saves up to $325 per year on utility bills, which means the GeoSpring pays for itself over time.
The offer is valid on equipment purchased and installed before May 31, 2013. All submissions must be postmarked by Jun. 30, 2013. For additional information about the water heater rebate and eligibility requirements for the E-power rebate program, visit www.pplelectric.com. As an added convenience to simplify the shopping experience, GE Appliances’ new Rebate Finder easily allows consumers to see rebates by appliance model that may be available in their area. From GEAppliances.com, enter your zip code and select Water Heaters in the product field to view rebate details and submit. Andrew M. Seder, a Times Leader staff writer, wishes all dads out there a Happy Father’s Day. Follow him on Twitter @TLAndrewSeder
lot of ink, airtime and bytes were expended last week responding to a Federal Reserve report that showed the median net worth of American families fell nearly 40 percent from 2007 to 2010. If you owned anything of value – stocks, an SUV or a house – you probably didn’t escape the decline. Ideologues on both sides of the political spectrum tried to use the report to bolster their own biases and denigrate those who disagree with them. Some conservative apologists pointed out that Americans had benefited from two financial bubbles in the previous decade – dot-com in 2001 and real estate until 2007 – implying that net worth had been artificially high. Sorry, but that doesn’t fly; the 2010 figure is about equal to net worth in 1992, which itself was a low point. There had been a relatively steady climb upward since then, with a spike in 2007. (The Fed conducts the survey every three years.) President Barack Obama and his supporters didn’t dispute the drop, but blamed it on his predecessor, George W. Bush. While that’s where some of the blame surely lies, many of the policies that got us here were embraced by a Democratic majority in Congress happy to pretend the good times could last forever … or at least until they were re-elected. All that back-and-forth is just white noise, though, and it distracts from the most important news in the report – the Great Recession did its greatest damage to the middle class, the vast majority of working people who form the backbone of our economy. Jabber on all you like about wealthy “job creators” but the truth is, piling more money in their investment accounts won’t restore growth because there simply aren’t enough of them and they won’t spend their hoards on things that require businesses to hire more workers. Digging deeper into the figures, it’s easy to see why many Americans – particularly in the “bottom 90 percent” – feel bitter, angry and discouraged. Here’s one reason; while middle-class families took it on the chin, the wealthiest saw their median net worth rise slightly. Perhaps more important, the difference between the median and average net worth numbers is another reminder of the widening gap between the rich and the rest in America. Going back to 1998, the mean, or average net income was just under four times the median, which is the point at which half of families are above and half below. The actual numbers then were $359,700 average and $91,300 median. By 2007 the difference was approaching five times, with the average family’s net worth at $556,300 and the median at $120,300. In terms of growth, the average – driven by a relatively few super-high earners – was up 55 percent but the median rose only 32 percent. Recent figures say the gap narrowed somewhat with the downturn in markets but has widened again. And here are two more scary numbers: Home equity made up $55,000 of that median family’s 2010 net worth of $77,300, meaning they had less than $25,000 in financial or other assets. And, not only did net worth decline, so did income, by nearly 8 percent. Chances are most workers also were asked to shoulder more of the cost for health insurance, too, if they were fortunate enough to have it through their employers. Some smart economists are beginning to warn that starving the middle to feed the top inevitably will lead to a weaker economy in which everyone will suffer. Most Americans already knew that from firsthand experience; business and political leaders need to get the message before it’s too late. Ron Bartizek, Times Leader business editor, may be reached at rbartizek@timesleader.com or 570-970-7157.