Shenandoah Valley Business Journal - March 2019

Volume 20, No. 5, March 27, 2019

Building The Future Construction Industry Faces Dearth Of Skilled Workers

Spotlight

on:

TION C U R T S CON Page 4

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SHENANDOAH VALLEY BUSINESS JOURNAL

Wednesday, March 27, 2019

Harrisonburg, Va.

Inside This Issue Focus Section: Construction The Shenandoah Valley Business Journal is a monthly publication of the Daily News-Record, 231 S. Liberty St., Harrisonburg, VA 22801.

Editorial Staff Publisher: Craig Bartoldson

■ The Next Generation Of Builders...........................Page 4

Other Business News ■ Valley Named Top Emerging Industrial Market..........Page 3 ■ Rockingham Insurance Marks 150 Years.................Page 3 ■ Local Used Car Dealers Say Business Booming.....Page 8 ■ New Burger Chain Opens In Harrisonburg..............Page 10

Managing Editor: Jeremy Hunt

■ EMU Alums Start Medical Staffing Company.......Page 11

Staff Writers: Ian Munro, Laine Griffin Contributing Photographers: Ian Munro

■ Construction Corner by Ryan Strite.......................Page 9

HARRISONBURG — With Lori Kizner’s last day with the Boys and Girls Clubs of Harrisonburg and Rockingham County coming to an end in two weeks, Greg Lunsford will take over the reins as interim executive director.

Lunsford, 50, began his career at the local Boys and Girls Club last Oct. 15 as the director of development. Once he takes over as interim executive director on Lunsford April 1, he will still continue his job as director of development.

“Lori has done so many great things for this club and typically someone coming in, whether permanent or interim, typically wouldn’t have the opportunity like I did to work with the current executive director,” Lunsford said. “I feel very grateful to have worked with her these last six months. She

is very knowledgeable and extremely willing to help me in any way that I’ve needed.”

The organization operates seven club sites, three in Rockingham County and four in Harrisonburg, including its headquarters in the Lucy F. Simms Continuing Education Center, 620 Simms Ave. Lunsford came to the Valley from South Florida, where he lived for 20 years working as the vice president for Ocean Reef Community Association, which is a management company that oversees five smaller companies.

Doug Driver, president of the club’s executive board, said that the executive committee realized it would not have a replacement for Kizner by the time she left so they would need to find an interim.

“Greg was the logistical person to fill in as interim executive director,” Driver said.

— Laine Griffin

By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com By fax: 433-9112 By phone: 574-6278 (news) 574-6229 (ads) On The Cover:

Columns

■ Investments by Matthew R. Frakes.....................Page 11

Boys And Girls Club Names Interim Executive Director

Contact us

Ian Munro / DN-R Jodie Hensley, 19, a Massanutten Technical Center student from Bridgewater, finishes a bench in a shop at the center on March 21.

The Reserve At Stone Port Wins Allegheny Bancshares Announces Fourth Quarter Earnings Award For Resident Surveys HARRISONBURG — The Reserve at Stone Port has won the 2018 Ellis Customer Experience Best in Class Award for Resident Surveys.

The Ellis Resident Surveys are based on customer loyalty, according to a press release.

The Reserve’s loyalty score was 91 percent, the highest in the survey. Responses to residents from management were 1.5 days faster than the average for all properties.

The survey program polled residents of nearly 4,000 apartment communities over the five years it has existed.

The Reserve at Stone Port is located southeast of Harrisonburg along Stone Spring Road.

FRANKLIN, W.Va. — Pendleton Community Bank’s parent company, Allegheny Bancshares Inc., announced fourth quarter earnings in a Feb. 23 press release.

The 2018 net income for the Franklin, W.Va.-based institution was $3.8 million, or $4.54 per share.

This marks an increase of 15.35 percent in net income over 2017’s results of $3.3 million and a 16.41 percent increase in earnings per share over 2017’s results of $3.90.

Allegheny’s net interest income, assets, loans, deposit balances all grew in 2018.

Deposits, which increased by 7.23 percent, helped to increase loans by 6.91 percent to $15.8 million.

Pendleton Community Bank has six branches, including two in Harrisonburg.

— Ian Munro

See SCENE, Page 10

— Staff Reports

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

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Valley Named Top Emerging Industrial Market For 2019

By IAN MUNRO Daily News-Record

HARRISONBURG — The Shenandoah Valley was the only Virginia region to be listed in the “10 Emerging U.S. Industrial Markets to Watch in 2019” assessment produced by multibillion dollar commercial real estate firm Colliers International.

“The fact that our market was the only one in Virginia is certainly a very positive sign for us, and we will certainly market that,” said Brain Shull, the director of economic development for Harrisonburg.

The Valley region is expected to rise from a secondary to a primary logistics market, according to a quote in the list from John Lesinski, the executive vice president of Colliers International’s Northern Virginia office.

Some of the Shenandoah Valley’s strengths listed by Colliers include growth potential, a large labor force and rail access to the Port of Baltimore and Inland Port of Virginia.

The progress of local development is also discussed in Colliers’ assessment. Historically, new construction in the Shenandoah Valley has lingered around 1 million square feet. The area of new development in 2018 almost doubled to 1.8 million square feet.

If all 3.3 million square feet of 2019’s newly planned development is completed, it would be a record year, according to the assessment.

New businesses need a workforce to fill their staffing needs, and the educational institutions of the Valley help to provide a vast and educated pool of workers, Shull said.

“I think the fact that the I-81 corridor is really an education corridor as well plays into that,” he said. “You have an amazing pipeline for a future workforce.”

“When you combine that the great access that Interstate 81 provides, it’s easy to see why we were selected,” Shull added.

The proximity to the markets of the Balti-

DN-R File

A straddle carrier moves outside rail containers at the Virginia Inland Port in Warren County in 2010. The port was cited as one of the Shenandoah Valley’s strengths by commercial real estate firm Colliers International in naming the region to its “10 Emerging U.S. Industrial Markets to Watch in 2019.” more, the Washington, D.C., metro area and the Ohio Valley is also highlighted in Colliers’ list.

“We provide quick and easy access to those markets, but the cost out here is significantly lower,” Shull said.

Annual asking rental rates in the Shenandoah Valley are $1 per square foot below the national average, according to Colliers. Although local prices have risen, as Colliers

notes, 2018 finished with an average price of $4.27 per square foot per year.

“I have heard that our per square foot price is less than the national average,” said Casey Armstrong, director of community development for Rockingham County.

The costs may be lower because of the local government encouragement of industrial development, he said.

Frank Tamberrino, president and CEO of

the Harrisonburg-Rockingham Chamber of Commerce, said Colliers International’s expertise and unbiased approach provide more legitimacy to the economic strength and potential of Shenandoah Valley.

“With studies like that,” he said, “people take notice.”

Contact Ian Munro at 574-6278 or imunro@dnronline.com

Rockingham Insurance Marks 150 Years In Business

By IAN MUNRO Daily News-Record

HARRISONBURG — On Jan. 1, staff of Rockingham Insurance celebrated both the new year and the company’s 150th birthday, otherwise known as a sesquicentennial.

The company was formed in 1869, shortly after the Civil War, primarily to help rebuild the destroyed South, said Bill Bayer, the vice president of marketing at Rockingham Insurance.

“A group of farmers got together to form a

company back then,” he said. “Fast forward 150 years, we are in all 50 states.”

Across the country, the firm serves approximately 58,000 customers, Bayer said.

The firm’s coverage will consist of about 60 percent traditional insurance, such as auto, home and farm, while 40 percent will be “program business” by the end of 2019, he said.

Program business is for a specific type of risk, according to Bayer.

Rockingham Insurance’s rise to national service did not come quickly, Bayer said.

“We were primarily a Virginia company until 2000,” he said.

During that year, Rockingham Insurance expanded to Pennsylvania.

“We wanted to diversify both geographically and types of insurance we’re writing to help us maintain our strength all the while trying to be your local company,” Bayer said.

The Harrisonburg-based firm also has an office in Richmond as well, employing 80 staff.

Bayer has been with the firm for seven years, he said.

Almost 20 agents solely sell Rockingham Insurance. Another 100 operate as independent sellers, meaning that they can sell other companies’ policies as well.

Thousands of brokers also sell Rockingham Insurance coverage through their respective businesses, he said.

One major step to growth for the firm was a partnership with San Diego-based Atlas General Insurance Services, Bayer said.

See INSURANCE, Page 8

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Harrisonburg, Va.

Ian Munro / DN-R

Benjamin Derrow, 17, a Massanutten Technical Center architecture student, continues work on a scale model of a building design on March 21.

Industry Struggles With Skilled Worker Shortage MTC Aims To Help Fill Gap

By IAN MUNRO Daily News-Record

HARRISONBURG — Jodie Hensley, a second-year Massanutten Technical Center carpentry student, will have three hours to build an ersatz house at the state competition for SkillsUSA after she won the district competition earlier this year.

“We’ll build a smaller house, floor plan, about three walls, maybe a window,” she said.

For now, Hensley is selling benches she has made to raise money for the state competition, she said.

Hensley is one of the many students attending MTC to learn trades that will help to fill the labor shortage that the country is facing.

“I figured I’d give [carpentry] a shot, and I grew to really like it,” Hensley said.

Construction disciplines, such as carpentry, masonry, heating, venting and air conditioning, and welding have many openings, said Neil Tucker, a carpentry teacher at MTC and Hensley’s instructor.

“There’s enough unskilled labor, but our industry, construction, is really wanting for skilled labor,” Tucker said.

Over 215,000 jobs for craft labor will be available in Virginia by August 2021, ac-

cording to market estimates by Build Your Future, a construction career center.

“I would put stock in the numbers,” Tucker said.

Local construction firms are feeling the squeeze.

“The pipeline is getting thinner each year,” said Andy Tutwiler, chief of Lantz Construction. “I guess more kids are going into technology.”

Construction firms find themselves scouring for employees.

“You have to set up at the various career fairs, at the technical centers, high schools and colleges,” Tutwiler said.

MTC is a force for getting young people

into the trades, pulling students and adults from Harrisonburg and Rockingham County.

“Our main focus in the adult program is apprenticeship training, a four-year college degree but for the tradesperson,” said Sandy Rinker, supervisor of adult programs at MTC. Most employers in the construction trade use apprenticeship training, she said.

MTC expects to keep busy training such workers.

“There’s always been a need for tradesmen,” she said. “What’s going on now is people are beginning to retire and the need is becoming even greater.”

See BUILDERS, Page 5

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Wednesday, March 27, 2019

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More Than 2 Million Construction Workers Laid Off As Industry Slowed In 2008 Builders

FROM PAGE 4

More than 2 million construction workers were laid off as the industry slowed due to financial crisis of 2008, according to a September article in Virginia Business Magazine. Many retired or switched careers, according to the article.

“The other problem is we don’t have as many interested students who want to get into those fields,” Rinker said.

Those who do have plenty of career options. Students meet potential employers and occasionally even begin working for them while at MTC. One such student is Daniel Yavny, 16, who is a high school graduate and splits his time between MTC architecture classes and a paid internship with Valley Engineering.

He works at Valley Engineering from 8 a.m. to noon and goes to MTC in the afternoon.

Most sponsors and employers pay for their workers to attend classes at MTC, Rinker said.

“That’s always been the case,” she said.

Sometimes they pay directly; other times they offer payment through reimbursements, she said.

MTC students, including high schoole students, have a variety of goals, with some wanting to directly enter the workforce, others going to college and some doing both.

Isaac Kisling, 17, an East Rockingham High School senior, is taking courses in electrical work at MTC and was accepted to Virginia Military Institute and Virginia Tech for civil engineering.

“I like to make connections from in [the electrical classroom] to engineering topics,” he said. “The whole general idea, it seems a lot of the things are related.”

Other high school stu-

Photos by Ian Munro / DN-R

LEFT: Justin Ridder (left), 17, and Daniel Yavny, 16, work on architecture projects at Massanutten Technical Center on March 21. ABOVE: Jodie Hensley, 19, works on a bench at Massanutten Technical Center on March 21.

dents, such as Benjamin Derrow, 17, of Broadway High, and Justin Ridder, 17, of Turner Ashby High, look to continue MTC courses and then take classes at Blue Ridge Community College or James Madison University.

“I was hoping to be in the workforce by the end of this year,” said Derrow, who has had three job interviews this year.

Highlighting the variety of options in a trade career is another focus of MTC. “On the high school side, we try to make people understand there are many many different career paths, and college is not the only one,” Rinker said.

One challenge those in trade education and field face when looking for employees is the perception of trade work.

“People believe that if they go to college, they’re going to get a better job,” Rinker said. “What we do is to try and change that perception of parents and young people.”

Rinker said one misconception has to do with compensation.

“The perception of people not making good money [in the trades] is wrong,” Rinker said.

Regardless, younger people looking to enter the workforce may have other qualms about trades that money wouldn’t necessarily fix, said Zack Snell, president of the Shenandoah Valley Builders Association.

“I don’t see anyway to fix the trend of making it more glamorous, and I think that’s hurdle you won’t overcome anytime soon,” he said.

One of the effects of the shortage is employers can’t get to all the work that’s available as soon as they’d like, Snell said.

“Now, you have to schedule out three or four weeks, in some instances, more than that,” he said.

The jobs in the industry are expected to remain stable even as automation and robots become more sophisticated, because the skills are labor-dependent, Tutwiler said.

“Given the current state of the workforce, I think it’s going to be pretty priceless in the future,” Tutwiler said.

As Hensley continues to

sell her benches, she already has ideas for her own future.

Right now, Hensley is roofing at Byler Barns and Backyards in Harrisonburg

and looking to get more ex- said, “and start a business perience, but she has big within 10 years.” plans for the future.

“Hopefully, take a busi- Contact Ian Munro at 574-6278 ness class at Blue Ride,” she or imunro@dnronline.com

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Local Used Car Dealers Say Business Booming

By IAN MUNRO Daily News-Record

HARRISONBURG — Local used car dealers have seen success in recent years as the market has heated up.

“We’ve been here for 37 years, and the last three years are the best years we’ve ever had, numberswise,” said Keith Knupp, the owner of the Keith’s Auto Sales, which has locations in Penn Laird and Harrisonburg.

New car sales are also increasing, but “the used car market is where the strength is,” said Eric Obaugh, dealer principal of the Charlie Obaugh dealership in Staunton, which sells new and used cars.

Annual used car sales in the U.S. have grown steadily every year from 35.7 million in 2013 to 40.4 million in 2018, according to automotive information website Edmunds. com. However, Edmunds also expects used car sales in 2019 to flatten out.

Despite the outlook, local dealers are still seeing a surge of buyers.

Many factors contribute to the used car market’s condition, including the price of both new and used cars, Obaugh said.

“In the context of paymentwise for a budget and term of financing,” Obaugh said, “it’s a hell of deal with what [used cars] you can buy right now.”

Before the Great Recession about a decade ago, owners typically held onto a car for nine years, but since then, the ownership length has increased to 12 years, Obaugh said.

“The cars that are built today, every manufacturer, they build them better today. They last longer because that’s what the public wants,” Obaugh said.

The increase in quality contributes to the

source of used vehicles for dealers.

The lease market slowed during the Great Recession but started to return in the early 2010s, Obaugh said.

Those cars are finding their way into the used car market with certifications and warranties, which are attractive to buyers.

“It’s a pretty darn good deal,” Obaugh said.

And the cars do not sit on lots for very long.

“The demand is very high, but filling that supply is very, very difficult,” Knupp said.

The scarcity of good used vehicles has caused their price to increase as well, he said.

Trucks have especially been in higher demand because of their status as the new family car, he said.

“It’s almost like redefining an automobile,” Knupp said.

Ian Munro / DN-R The interest in trucks has translated into sales at Keith’s Auto Sales.

Used cars sit on the lot of Wease Auto Exchange in Harrisonburg. Bob Wease, the owner, said “I would say, 10 years ago we sold 75 percustomers increasingly turned to used cars as the price of new cars has risen. cent automobiles and 25 percent trucks,” he rise in new car prices.

“The used car market is great if you can said. “Now, it’s the other way around.”

In response, customers increasingly find cars, but the key is finding cars,” Wease Contact Ian Munro at 574-6278 turned to the used car market, said Bob said. or imunro@dnronline.com Wease, the owner of Wease Auto Exchange Previously leased vehicles are a reliable in Harrisonburg.

“The inflation of new cars have helped used cars flourish,” Wease said.

In the past, people wanted to drive new cars because it made them “feel good,” Wease said, but he has seen that shift in his 42 years in the used car market.

“But today, honestly, I believe your middle-class and middle-age people don’t really care as long as it gets them from point A to point B,” Wease said.

The higher demand for used cars has made finding inventory difficult for dealers.

Construction & Contract Attorneys

Largest Donation Has Gone To United Way Insurance

FROM PAGE 3

Atlas is a managing general agent, which means that “they do everything an insurance company would do except take the risk,” he said, which is where Rockingham Insurance comes in.

To celebrate 150 years, the firm is donating $150,000 to the community in various ways, Bayer said.

Employees can donate $150 to any charity of their choice while customers, once a month, have the chance to receive $150.

“At the end of the year, we will pull a winner for a trip anywhere they want,” Bayer said.

The firm is also the primary sponsor for

the Harrisonburg Rotary’s Strawberry Festival in May. Rockingham Insurance’s largest donation has gone to the United Way of Harrisonburg and Rockingham County to help pay for the first year of a software system called Empower Harrisonburg Rockingham.

The software system, launching today, would allow enrolled providers to standardize information for clients in need of health and human services.

“It really should be an awesome thing for the community,” Bayer said.

Contact Ian Munro at 574-6278 or imunro@dnronline.com

Our experienced attorneys provide knowledgeable assistance to clients with their business and legal needs. We represent General Contractors, Subcontractors, Suppliers, Owners, Developers, Design Professionals, and Lenders. Our proficiency with complex business and legal issues allows us to provide assistance at all phases of construction: from contract drafting and review, to delays and workmanship issues, to claims enforcement through mediation, arbitration, or litigation.

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Design-Build: What Is It And Why Should I Care?

“H Construction

ow much will my construction project cost and how long will it take?”

This is the bottom line question that every business owner or institution has that wants to build a building. Of course, a timely, cost-effective construction project is the overriding desire for everyone, but the road map or project delivery system to get there can often make a huge difference in cost, time and resources.

You may have seen construction companies increasingly advertise that they provide “design-build” solutions. Design-build is a construction project delivery method that differs from the traditional project delivery method in that it is a collaborative process. It involves both the design and construction team to work in unison to create a design that meets the owner’s expectations. The design-builder will also work closely with key subcontractors to establish close budgets and only moves on to next step of detailed design when the design and budget meet the owner’s requirements. Approaching design this way will limit the owner’s risk by not paying the designer to do a full set of drawings until you know the project is within budget and also not waste valuable time developing detailed drawings, only to find the project is overbudget.

I have heard many horror stories of people that spent months and tens of thousands of dollars putting together detailed drawings, bidding it out to a number of contractors, only to find out they are way over budget. The owner then has to go back and pay the designer to redo the drawings in hopes of them creating a design within their budget. Meanwhile, precious time and money are wasted.

The below graphic shows a comparison between design-build and a traditional approach. You can see where cost is established early on in the design build process and through a collaborative approach, allows design and budgeting to overlap and shorten the overall design/construction timeline.

DESIGN - BUILD TIMELINE Faster Completion Time Cost Identified

TRADITIONAL TIMELINE

Cost Identified

One other advantage of design-build over a traditional approach is the single source of responsibility. We have illustrated the different approaches below.

OWNER

CIVIL TEAM

OWNER

DESIGN TEAM

BUILDING TEAM

CIVIL TEAM

DESIGN TEAM

BUILDING TEAM

In a traditional approach the owner gets in the middle of managing a building

Corner Ryan Strite team, construction team and sometimes even a civil team (for site work). This can be a hair-pulling ordeal for most owners who for one, are not familiar with construction and two, are so busy running their business, they do not have the time to manage the construction process adequately.

Design-build allows the owner to deal with one party, the design-builder, and lets the design-builder coordinate with the rest of the team. Since the designer(s) and building team are all on the same team and responsible for design and construction, there is less risk of change orders and bickering as to who is responsible for mistakes with design or construction; responsibility falls on the design-builder.

It is no surprise that design-build has been increasing rapidly as a project delivery system in the construction industry. If you are looking to complete a building project we encourage you to dig deeper into the benefits provided. We have experienced that design-build leads to quality projects, built in budget, and on time. Most importantly, the owner and contractor walk away not only satisfied but as friends.

Ryan Strite is senior business development manager with Harman Construction.

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New Burger Chain Opens In Harrisonburg

By IAN MUNRO Daily News-Record

HARRISONBURG — Harrisonburg’s Which Wich may be gone, but the sandwich customization lives on at Burgerim, which took its place at 291 University Blvd. in January.

“This is not a normal burger joint,” said Gervasio Amato, manager and owner of Burgerim.

The name means many burgers in Hebrew, Amato said, and the Israeli franchise has locations all over the world.

Burgerim is for “a new age of fast-casual food,” Amato said, but does not fall into the fast-food category.

“Sometimes, you have to wait 15 minutes,” he said, “but it’s usually less.”

Burgerim’s menu may have all the mainstays of a typical burger joint, such as milkshakes, beer, fries and, of course, burgers, but Amato said several key differences makes Burgerim unique.

For one, the individual burgers may look small, but contain 3 ounces of meat. McDonald’s Big Mac contains 3.2 ounces of meat, according to McDonald’s website.

To Amato, the burgers are not sliders, but a “sensible” size.

The number of options is another unique quality, Amato said.

There are 11 different patties offered.

The amount of options helps Burgerim to meet a wide variety of dietary restrictions, Amato said.

Sandwiches can be wrapped in lettuce for customers who do not want buns.

“It’s not just burgers,” he said, which was one of the reasons Amato was drawn to the franchising opportunity.

There are several different ways the sandwiches can be ordered, Amato said.

The Classic comes with American cheese, lettuce, tomato, pickles, onions, and house sauce. There is a 79 cent charge for the other options, California, Cowboy and Caliente, which include specialty toppings.

“You can really mix and match,” he said.

A “duo” comes with two customizable sandwiches for $6.99. The patty options include variations of beef, chicken and falafel.

Other types of orders include a “trio” sandwich option for $9.99, a family box for $34.99, and a party box for $44.99. Customers can add fries and a drink to the duo and trio for an extra $3.

The family box comes with eight burgers, eight wings, onion rings and fries. The party box comes with 16 burgers with four choice of patties and four choices of styles, Amato said.

There are no servers, and that helps Burgerim cut its expenses and pass the savings on to customers, Amato said, a system different from his previous experience.

Amato has spent 37 years managing restaurants, including Jalapeno’s in Bridgewater and Harrisonburg.

This is the first franchise he’s worked with.

“For me, it’s a new concept, not something I created,” he said.

And he is eager to learn more, he said.

“I am 52, and hired two guys, 23 years old, to train me,” Amato said. “I like it because I never stop learning.”

Photos by Ian Munro / DN-R

ABOVE: Burgerim order options include the trio, pictured here, featuring three burgers. LEFT: The kitchen is filled with specialized Burgerimapproved equipment.

Contact Ian Munro at 574-6278 or imunro@dnronline.com

Business And Litigation Firm Has 26 Attorneys Specializing In 23 Practice Areas merly known as Lenhart Pettit has a new name.

According to a press release, Jeff LenLenhart Pettit Law Firm hart, a shareholder in the firm’s HarrisonChanges Name To Flora Pettit burg office, has retired, prompting the name HARRISONBURG — The law firm for- change to Flora Pettit.

Scene

FROM PAGE 2

John Flora, a founding shareholder who practice areas, the release says. primarily practices in the firm’s HarrisonIt has offices in Harrisonburg and Charburg office, is now recognized in the firm’s lottesville. name.

Flora Pettit is a business and litigation — Staff Reports firm with 26 attorneys specializing in 23

Harrisonburg, Va.

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Eastern Mennonite Alums Start Medical Staffing Company

By IAN MUNRO Daily News-Record

HARRISONBURG — Eastern Mennonite University alumni Jairemy Drooger and Scott Yoder have opened an office for their medical staffing business, CT Assist, in the town in which they once studied.

CT Assist is a health care staffing firm that helps link medical employers with workers across the nation. Its new office is located at 237 E. Market St., in the Urban Exchange mixed-use complex, in Harrisonburg, and received its business license from the city in December.

The firm contracts with hospitals to help fill personnel shortages in medical staff, said Drooger, chief innovation officer and co-founder of CT Assist.

“Usually, [hospitals] would have a need or an area of shortage so they reach out to us,” he said.

CT Assist then connects them with medical personnel, called providers, who are ready to work.

The faces of CT Assist providers are on one office wall as a reminder of

the people they work with every day, Drooger said.

The office is filled with a dull, humming sound that is called sound masking. This is so when everyone in the office is talking on the phone, their conversations are less likely to disturb each other, Drooger said.

And constant phone calls are part of the workday. Most of CT Assist’s business with medical employers is done remotely, Drooger said, and that also involves a lot of traveling.

Many of CT Assist’s medical personnel are physician assistants and nurse practitioners who have a focus in cardiac surgery.

Drooger and Yoder founded their company during 2013, in the small West Virginia town of Philippi, about 40 miles south of Morgantown.

Yoder, a clinician and physician assistant, had the idea for the company, Drooger said. “We knew each other and I had a business background and that’s how it played out,” said Drooger, who attended EMU with Yoder in the mid1990s.

Originally, Yoder and Drooger oper-

ated the business remotely, but in 2014, they rented their first office in Philippi.

As the business grew, they looked to expand to other places, and Harrisonburg sprang to their minds.

“We have family here. We have a lot friends here,” Drooger said. “We know the area. We know it’s a great town.”

Family, friends and schools all played into the decision to open the office.

“We’ve hired four people here locally since we’ve opened this office, and we’re currently interviewing for three other positions,” he said.

In addition to Drooger and Yoder, five other EMU alumni are on CT Assist’s staff and the company has made labor connections across the country.

“We’ve not worked in every state, but I’d say over half at this point,” he said.

With experience in dealing with governments across the nation, Drooger said working with Harrisonburg was great.

“Having an office in a place like Harrisonburg is great,” he said. “With all the universities in the area and

Ian Munro / DN-R

From left, co-founder Scott Yoder, Delight Tigoe, Bonnie Moore, Minnette Hostetler, co-founder Jairemy Drooger and Cort Beckman, staff members of CT Assist, pose for a photo outside the Harrisonburg office. there seems to be a lot of talent available.”

Harrisonburg’s larger size than Philippi helps CT Assist to create more business connections and Drooger is happy with the openness of the local business community.

“Just connecting with other local

companies, other local business owners, some great collaborative conversations,” he said. “It’s one of the things I get excited about here in Harrisonburg.”

Contact Ian Munro at 574-6278 or imunro@dnronline.com

Saving For Retirement And Your Child’s College Education

Y

ou want to retire comfortably when the time comes. But you also want to help your child pay for college. With the cost of college tuition increasing and no guarantee that Social Security will be around at the time you retire, the amount of money you need to save may seem overwhelming. How do you balance both of those goals?

By starting to plan now, you can strike a strategic balance between saving for retirement and saving for college, says Will Larson, Retirement Planning Strategist for Wells Fargo Advisors. “A good way to help achieve both goals is to sit down with your financial advisor as soon as possible and create an investment plan,” he says. Your financial advisor will talk to you about your goals, estimate how much money you need, and then put together a plan to get you on

your way toward saving for both retirement and your child’s college education.

These strategies can be a good place to start.

Pay yourself first. Your top priority should be saving for retirement, Larson says. He recommends putting aside around 15% of your income every year.

Don’t make the mistake of thinking you can tap into your retirement plan to pay tuition — taxes and penalties mean you’ll take a big hit.

Invest your money in tax-advantaged accounts.

Your money will work harder for you if you take advantage of tax-friendly accounts like 529 savings plans. The key is starting as early as possible, says Kirk Pacatte, Planning and Life Events Specialist at Wells Fargo Advisors. “The earlier you get money in there, the better the potential for it to grow tax-deferred and com-

pound,” he says. “That’s especially important when saving for education because you have a shorter window to save than you do for retirement.”

Take advantage of changes in income or expenses. If you get an unexpected inheritance, stash at least some of it in your savings. And if you get a 2% raise, consider putting 1% toward college savings and 1% toward retirement. If you no longer have to pay for daycare or preschool because your child goes to public elementary school, keep making those payments, but put them into your child’s college savings account instead, Larson suggests.

Set clear expectations with your child. Have a frank conversation with your high-schoolaged children about the level of financial support you can provide for college, Pacatte suggests. Some parents commit to paying the equivalent of the cost

Investments Matthew R. Frakes of in-state tuition for four years at a state school. Others agree to pay for half of the bill and let their children know they are expected to cover the rest.

Look for ways to save on tuition. Even if you have significant savings for college, apply for scholarships and financial aid — you never know what you’ll get, Pacatte says. You can also encourage your children take Advanced Placement or college-level courses in high school. If they earn enough college credit, they could potentially graduate from college in

three years. “Being able to lop off a full year of college funding makes a huge difference in cost,” Larson says.

An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 college savings plan.

This article was written by/ for Wells Fargo Advisors and provided courtesy of Matthew Frakes,

Financial Advisor in Harrisonburg, VA at 540-801-3211 Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and nonbank affiliate of Wells Fargo & Company. © 2018 Wells Fargo Clearing Services, LLC. All rights reserved.

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Wednesday, March 27, 2019

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.