December 2012 Business Magazine

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EGGS ’N’ ISSUES

►►►Where Business Leaders Meet

WHAT LIES AHEAD? Don’t miss our annual EGGS ‘N’ ISSUES ECONOMIC FORECAST on Wednesday, December 12, with James Kurre, Ph.D., associate professor of economics at Penn State-Behrend and director of the Economic Research Institute of Erie (ERIE), for an in-depth look at the facts, figures, statistics and trends that can give us a clearer picture of what to expect in 2013 — as well as insights on the impact of Obamacare, the fiscal cliff, and possible expiration of the Bush tax cuts. To register, click here or call 814/833-3200 or 800/815-2660. Registration: 7:45 a.m. (8 a.m. presentation) Cost: $30 Members, $60 Nonmembers

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXV, NUMBER 12

DECEMBER 2012

2013 Economic Forecast Recovery Still Has a Long Way to Go / Page 14

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14

December 2012

EDITORIAL >

FEATURES >

Why it’s important to understand the hidden costs of alcohol abuse in the workplace. ALBERT MOORE, MPM, CEAP, SAP

Association President Ralph Pontillo unveils the MBA’s new business intelligence program aimed at engaging members more rapidly and effectively.

11 / Legal Brief

5 / Risking It All

9 / Health Matters

U.S. Supreme Court finds a constitutional right to lie. RUSSELL S. WARNER

13 / Financial Adviser

Make a New Year’s resolution for a well-planned financial future. JOHN F. EVANS

SPECIAL SECTION >

22 / Sirco Industrial Supply Willy Sickert, president and owner of Sirco Industrial Supply in Millcreek Township, explains why his family owned business has become the go-to provider for hoses and belts, hydraulic fluids and safety supplies in the region.

3 / For What It’s Worth

Paul Nelson, owner of Waldameer Park & Water World in Erie, talks about the challenges and opportunities of running a business and keeping it profitable in the current economy.

14 / 2013 Economic Forecast

Four and half years after the recession’s peak, the United States is still not back to where it was in 2008. Economists James Kurre and Val Vlad address the long road to recovery in the year ahead.

5 22

25 / On the Hill Public policy professor David Kozak, Ph.D. reflects on the 2012 general election, and what we’ve learned along the way.

UPCOMING EVENT > Register now for the Association's annual Economic Forecast Briefing scheduled for 8 a.m. December 12. For further details, see this month’s digital magazine at www.mbabizmag.com or visit www.mbausa.org!

DEPARTMENTS > 6 / Business Buzz 18 / HR Connection

26 / HR Q&A 28 / The Network 31 / People Buzz

Read on the Go! For the most current Business Magazine updates, visit our new website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! December 2012 > www.mbabizmag.com > 1

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For What It’s Worth

EDITORIAL > by Ralph Pontillo

VOL. X X V, NO. 12 DECEMBER 2012

New Business Intelligence Program to Engage Association Members More Rapidly, Effectively Blue Ocean Strategy Center

Ralph Pontillo is the president of the Manufacturer & Business Association.

“The value of the Association to its members could never surpass the value of the members to the Association.” That statement is permanently memorialized in the headquarters at the Manufacturer & Business Association (MBA) and has guided this organization since its founding 108 years ago. For us, it’s not just a mantra or an inscription on a wall — it’s the driving force behind every decision and activity. It’s also why we believe that quantified value is important. For an association like ours, it is essential that we demonstrate a return on member investment. Before we offer a new or improved service, it must first pass what we refer to as the quantitative value test. • Does the product or service meet the needs or wants of members? • Does the product or service provide a unique and exclusive tangible benefit? • Does the organization offering the product or service meet or exceed the highest standards of operation? If the product or service fails any one of the value-test criteria, it is rejected.

Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor Managing Editor & Senior Writer Communications Specialist Contributing Writers Feature Photography Advertising Sales

Design, Production & Printing

Yvonne Atkinson-Mishrell Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Jessica McMathis jmcmathis@mbausa.org John F. Evans Albert Moore, MPM, CEAP, SAP Russell S. Warner iStockPhoto.com Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net

Two of the MBA’s most significant value propositions are the insurance program, which saves participating members an average of $2,240 per year, and the energy program, which saves members $7,000 annually — a combined value of 33 years in membership dues. So while most associations continue to focus on selling products, the MBA remains focused on providing solutions. Why? Because our members demand it. This demand orientation can only be achieved through a close working relationship with each member company. It’s why we have a team of professionals creating a comprehensive communications program that focuses more on listening to you, our members. This program will foster a closer relationship and direct interaction with you through a multitude of communication methods that will include social media, email, fax and direct mail. You will be able to select from communications designed to fit your particular needs and preferences — not only in method but in content. During the next several months, you will see this new concept unfold in what we are calling the business intelligence program. The challenges and demands placed on our member companies to effectively compete are growing rapidly and are increasingly more complex. Therefore, the information and solutions to meet those challenges must be equally rapid and effective. This is not change for the sake of change, but meaningful initiatives that drive the value equation. Equally important, you will be engaged in the co-development of the products and services that result in measurable and targeted solutions that enhance your daily operations. It is our hope that this approach reinforces the mission of our founding members while embracing today’s innovative methods of identifying areas for improvement, analyzing problems and delivering solutions that increase the value of your MBA membership.

ON THE COVER: Economists discuss the long road ahead for the nation’s economic recovery. For full story, see page 14. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2012 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

December 2012 > www.mbabizmag.com > 3

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EDITORIAL > by Jessica McMathis

Values, Vision Help Guide Waldameer to New Heights

EDITORIAL > by Ralph Pontillo

Risking It All

The Business Magazine is proud to introduce our new “Risking It All” section, which highlights the entrepreneurs who took risks and made sacrifices to build their businesses in our region. This month, we sat down with Paul Nelson, 79, owner of Waldameer Park & Water World, to talk about the challenges and opportunities of running a business at 23 and keeping it profitable in the current economy. When he was just 11 years old, Paul Nelson made a deal on a handshake. The promise? That if Nelson worked hard enough, family friend Alex Moeller, who had run Waldameer Park since the 1920s, would eventually hand over the former trolley park that was founded in 1896.

“We let the customer “I just kept coming back every summer, through high school, and college, and choose what he wants.“ right after the service,” says Nelson, who shadowed Moeller, doing everything — Paul Nelson from dishes to janitorial work with the hopes that Waldameer would someday be his.

Waldameer will open its new Music Express ride in 2013.

His hard work paid off, and Moeller kept his end of the bargain — leaving Waldameer to Nelson upon his death in 1965. “I took over the park when I was very young,” says Nelson. “But Mr. Moeller had provided me with the life lessons I needed to know how to handle different situations.” Still, it was Nelson whose vision and work ethic pioneered the expansion and innovation by which the park is known, first with upgrades to the aging infrastructure in the 1960s, and the addition of the Whacky Shack, Pirate’s Cove and L. Ruth Express Train — which today are among the park’s most beloved attractions. When other amusements parks of similar size retracted or shuttered in the late ‘70s and early ‘80s, Nelson, made a risky but well-calculated decision to expand, going into debt to open Water World, which features a dozen water slides, lazy river and wading pools. He also sold Waldameer’s carousel and Blue Goose ride, using the $1 million proceeds to further expand the water park and build additional picnic shelters — decisions that resulted in record attendance. Today, the family owned and family friendly park is set to undergo another major expansion, having acquired three properties as part of a $30 million, 10-year plan that will see the addition of a wave pool in 2014, additional parking, fountains and gardens, an outdoor restaurant, and more. It’s the biggest improvement to the now-52 acre park since the opening of the $7.5-million Ravine Flyer II wooden coaster in 2008.

The amusement park introduced the $7.5-million Ravine Flyer II wooden coaster in 2008.

Nelson, with a small and dedicated full-time staff of several family members, including sonin-law and park president Steve Gorman, has ensured that Waldameer stands apart from others across the country. “Money has been tight the last few years,” says Nelson. “Other parks have lost attendance and their revenue has gone down. Ours, however, has climbed dramatically. It’s our philosophy that sets us apart — we let the customer choose what he wants.” With several decades of ownership and management under his belt, Nelson offers one critical piece of advice for others considering running their own business.

Great Lakes Automation Services, Inc. is headquartered at 8835 Walmer Drive in McKean, Pennsylvania.

“One of the biggest lessons you can learn is to use your time wisely, because time is valuable,” he says. “If you want to work 40 hours every week for the rest of your life, don’t go into business for yourself.” Regardless, Nelson is happy with the handshake he made all those years ago. “I enjoy what I do,” he says. “I’m 79 and can’t imagine doing anything else.” For more information about Waldameer Park & Water World, visit www.waldameer.com. December 2012 > www.mbabizmag.com > 5

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Business Buzz LECOM AND BAYHAWKS EXTEND PARTNERSHIP THROUGH 2017-18 SEASON The Lake Erie College of Osteopathic Medicine (LECOM) and the NBA Development League’s Erie BayHawks have signed a five-year contract extension that will continue to have LECOM serve as the exclusive medical provider for the team, extending the multi-faceted marketing partnership through the team’s 2017-18 season. “Since their beginnings, the BayHawks have strived to become a valuable partner to the Erie community, and there is no better example of their success in this regard than this multiyear partnership with an innovative, like-minded organization like LECOM,� said NBA D-League President Dan Reed. “By providing world-class health care and athletic facilities for the BayHawks players and coaches, this partnership with LECOM helps further

DEPARTMENTS > Contact: Jessica McMathis

GOLF TOURNEY RAISES FUNDS FOR CLINTON COUNTY CHARITIES Wayne Township Landfill (WTL), located in McElhattan, Pennsylvania, recently announced the proceeds of its 12th annual John B. Hoy Jr. Memorial Charity golf tournament. More than 130 golfers participated in the afternoon tournament, which raised $11,341 for two central From left: Thresa Walker, golf tournament Pennsylvania charities, Clinton coordinator; James Moore and Doug Brush for Clinton County Shrine Club; James Maguire, Sr., County Relay for Life and the board chairman, Clinton County Solid Waste Clinton County Shrine Club. Authority, and Jay Alexander, WTL general manager. Since its inception, this annual event has generated more than $83,000 for charitable organizations that benefit the residents of Clinton County. WTL is run by the Clinton County Solid Waste Authority. For more information, visit www.waynetwplandfill.com. our league’s development mission while amplifying the positive impact that the BayHawks can have in Erie County.�

For more information, visit www.lecom.edu or www.eriebayhawks.com.

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December 2012 > www.mbabizmag.com > 7

HAPPYHOLIDAYS

The attorneys and staff of MacDonald Illig wish you a happy holiday season and a New Year filled with peace and prosperity. And warmth.

Business Law s Litigation s Environmental s Intellectual Property s Trusts & Estates s Health Care Labor & Employment s Real Estate s Project Finance Law s Government Services & Public Finance Family Law s Bankruptcy & Creditors’ Rights s Tax s Construction s Insurance

MacDonaldIllig.com s 814-870-7600

EDITORIAL > By Albert Moore, MPM, CEAP, SAP

Health Matters Alcohol Abuse Has Hidden Costs in the Workplace The typical person who has an alcohol problem is anything but typical. The popular image may be that of an unemployed “bum” or “loser,” but facts say otherwise. Only a small percentage of alcoholics could be categorized in that manner and 90 percent of all alcohol abusers are employed. Alcohol abuse in the workplace has hidden costs that employers don’t always see. Its effects can show up in absenteeism, lower productivity, workplace injuries and accidents, as well as increased health-care costs and lower workplace morale. How to Estimate the Cost of the Problem The NIAAA (National Institute on Alcohol Abuse and Alcoholism) estimates the cost of untreated cases of alcohol abuse on businesses at $185 billion a year. For an individual company, it is estimated that alcohol abuse costs $7,000 a year per employee and that it affects, in some way, 15 percent of the work force. To translate: A company with 500 employees is probably spending more than $500,000 a year on the effects of alcohol abuse. What a Supervisor Should Do It is understandable that supervisors are wary about addressing problems in the workplace that appear to be related to alcohol abuse. But they also need to understand that each potential situation provides an opportunity to demonstrate leadership. Peers of the employee will gain respect for a supervisor’s problem-solving ability and appreciate the concern expressed

for a co-worker, because untreated abuse always gets worse. Remember: The sooner the intervention, the better for the employee, the employer, and the workplace. Alcohol consumption is legal and the behavior of an employee away from work is out of a supervisor’s control. Those two facts add to the difficulty in knowing how and when to act. But, employers can be confident in knowing that they are entitled to do what is necessary to ensure their employees perform their duties effectively and safely. That includes outlawing alcohol on a worksite. When It’s Time to Act Employee Assistance Programs (EAPs) are a good place for employees to turn for help if they have an alcohol problem, because these programs can recommend very specific things to help start to fix the problem. Plus, the service EAPs provide is confidential. Most employees trust them because the programs are independent of their employers. EAP representatives are experts in this area. They know the business, if you will. EAP coaches will often refer someone with an alcohol problem to other experts who can help, depending on what they need. In this way, EAP coaches are like brokers. They can help find the best deal in terms of care and counseling.

specific examples of behaviors that are unacceptable or substandard per company policy. Again, it is recommended that the manager consult HR before speaking to the employee. Focusing on behaviors, instead of opinions or diagnoses, allows a supervisor to avoid potentially inflammatory reactions. EAP consultation can help identify signs of deteriorating performance. There are times when a supervisor or manager may have to deal with an employee who is impaired on the job. This requires prompt action to ensure the safety of the employee and others in the workplace. EAPs can offer guidance on making a referral and on handling the employee. To learn more about workplace services available through LifeSolutions, visit www.UPMCHealthPlan.com.

Albert Moore, MPM, CEAP, SAP, is an account representative for LifeSolutions, which is part of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC WorkPartners, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits — and which offer a full range of insurance programs and products.

An impaired employee may be the last person to recognize the problem. It is essential for a supervisor to focus on job performance, documenting December 2012 > www.mbabizmag.com > 9

WORLD-CLASS CARE.

YOU CAN ALWAYS COUNT ON US. As the region’s only provider to be recognized among the nation’s 100 Top Hospitals by Thomson Reuters — now Truven Health Analytics — UPMC Hamot continues to set the standard for world-class health care in northwest Pennsylvania. More providers, more specialists. The UPMC Hamot Physician Network is home to more than 275 providers. And more than 130,000 of your neighbors choose UPMC Hamot as their primary care providers — enjoying access to the largest group of specialists in the region.

Dedicated trauma, stroke, and heart care. UPMC Hamot is the only regional provider delivering 24/7 trauma services and stroke intervention, and direct-to-cathlab protocols for heart attack victims. UPMC Hamot was recently named among the 50 Top Cardiovascular Hospitals in the nation by Truven Health Analytics for the ninth time and for the fifth consecutive year.

Reinvesting for the future. UPMC Hamot continues to reinvest millions of dollars into our region in the form of new technologies and services, dedicated facilities like the UPMC Hamot Women’s Hospital, and the recruitment of world-class physicians. We’re dedicated to being the region’s premier health care provider for generations to come. With direct access to world-class care, why would you choose to go anywhere else?

Affiliated with the University of Pittsburgh School of Medicine, UPMC is ranked among the nation’s best hospitals by U.S. News & World Report.

Legal Brief

EDITORIAL > By Russell S. Warner

U.S. Supreme Court Finds a Constitutional Right To Lie The U.S. Supreme Court recently issued a significant First Amendment freedom of speech case in United States v. Xavier Alvarez (decided June 28, 2012), which has received little attention in the mainstream media. The decision, by a divided Court, is contrary to a long line of prior Supreme Court cases recognizing that the First Amendment simply does not protect lies — knowingly false statements of fact that serve no legitimate interest. Medal of Honor False Claims The Stolen Valor Act makes it a federal crime for a person to falsely represent that he or she has been awarded a military medal for service in the U.S. Armed Forces, and imposes a higher penalty for false claims of receipt of the Congressional Medal of Honor. The Medal of Honor is the highest award for valor that can be bestowed upon a member of the U.S. Armed Forces. Congress enacted the Stolen Valor Act “in response to a proliferation of false claims concerning the receipt of military awards. For example, in a single year, more than 600 Virginia residents falsely claimed to have won the Medal of Honor … . Notorious cases brought to Congress’ attention included the case of a judge who falsely claimed to have been awarded two Medals of Honor and displayed counterfeit medals in his courtroom …” (Alvarez, J. Alito, dissenting). The specific facts in the Alvarez case are outrageous and compelling. Xavier Alvarez won a seat on the public Three Valley Water District Board of Directors. On July 23, 2007, at his first public meeting as a new Board Director, he arose and introduced himself as follows: “I’m a retired Marine of 25 years. I retired in the year 2001. Back in 1987, I was awarded the

Congressional Medal of Honor. I got wounded many times by the same guy.” None of this was true. He was never awarded the Congressional Medal of Honor, and he never served a single day in the Marine Corps or any other branch of the U.S. Armed Forces. As acknowledged even by the Supreme Court’s majority opinion in the Alvarez case: “Lying was his habit.” He had also previously stated that he won the Medal of Honor for rescuing the American ambassador during the Iranian hostage crisis, and that he had been shot in the back while returning to the embassy to save the American flag. On other occasions, he stated that he was a Vietnam helicopter pilot who had been shot down, that he had played hockey for the Detroit Red Wings, that he had been a police officer, and that he had been married to a Mexican starlet. The FBI obtained a tape recording from that July 23, 2007 public meeting. Alvarez was then charged with and convicted of violating the Stolen Valor Act for his false statement at the meeting regarding the Medal of Honor. The U.S. Supreme Court reversed his conviction, ruling that the Stolen Valor Act violated Alvarez’ First Amendment right to free speech under the U.S. Constitution. Supreme Court Ruling The Supreme Court decision attempted to distinguish other situations, such as fraud or defamation (libel/slander) cases, where the false statement has a causal link to some identified harm. But it is clear that lies regarding receipt of the Medal of Honor do, in fact, inflict tangible and substantial harm. “Individuals often falsely represent themselves as award recipients in

order to obtain financial or other material awards.” (J. Alito, dissenting). Is there any real doubt about the motive of a public official who lies at a public meeting about receiving the Medal of Honor, or about the intended and actual effect that such a lie has on the audience? As stated by the dissenting opinion in the Alvarez case: “Only the bravest of the brave are awarded the Congressional Medal of Honor, but the [majority of the Supreme] Court today holds that every American has a constitutional right to claim to have received this singular award.” Charles Dickens’ reaction to the Supreme Court majority’s decision in Alvarez would be as follows: “If the law supposes that … [then] the law is an ass — an idiot.” (Oliver Twist, Charles Dickens). For more information, contact Russell S. Warner at MacDonald, Illig, Jones & Britton LLP at 814/870-7759 or rwarner@mijb.com. Russell S. Warner is the managing partner in the law firm of MacDonald, Illig, Jones & Britton LLP. His practice includes representation of businesses, financial institutions and municipal entities regarding business and environmental matters, as well as acquisitions, capital projects, real estate development projects and financing transactions.

December 2012 > www.mbabizmag.com > 11

Financial Adviser

EDITORIAL > By John F. Evans

Start the New Year With a Well-Planned Future As we approach the end of 2012, we come upon the time for making New Year’s resolutions — going on a diet (probably the most popular), exercising more, quit smoking (not as big an issue these days), etc. The idea behind making resolutions is to get people to focus on improving and protecting their future — taking steps now that will help provide benefits for years to come. In my professional practice, I meet people almost every day who say, “I should have come to see you five years ago, but I’ve been procrastinating. I hope you can still help me.” We are all victims of procrastination from time to time, but procrastinating about our financial future can be dangerous. With rare exception, most of us experience retirement as a phase of life only once, so if we don’t plan for it thoughtfully, we may be very disappointed with our plight later on. Let me share some of the elements of a solid retirement plan: • Legal Planning No matter what age, you should have current wills, durable powers of attorney covering both financial and health issues, and advanced medical directives. These documents are central to maintaining control of your situation during challenging times, and no one ought to enter retirement without them in proper order. • Succession Planning For those who own a business or professional practice, successfully transitioning the enterprise to new owners (family or others) is critical, both in enabling you to disengage from the business and in providing you appropriate compensation for the value you created in the enterprise.

• Retirement Income Planning Whether you own a business or not, you will need income in retirement to supplement Social Security and any pensions you receive. This income needs to increase to account for inflation and should continue until the second death so that your spouse is not impoverished by your death. There are a variety of ways to create lifetime income; the key here is appropriately differentiating assets dedicated to income from those dedicated to growth. • Housing and Location Planning Many people choose to relocate when they retire; some choose a warmer climate, while others wish to be closer to family. Either in conjunction with a relocation or on a stand-alone basis, the decision to right-size one’s housing is also an issue. For some, the concern is financial; for others, it is transitioning to housing that is appropriately sized and configured for this stage of life. • Medical and Long-Term Care Planning We all realize that Medicare begins at age 65; what many do not realize is that Medicare doesn’t cover everything. Recent estimates are that a 65-year-old couple will spend more than $350,000 of their own funds on medical care and insurance during their retirement. However, this does not include long-term care services, which require a separate planning effort. Determining how to best tackle this challenge is no small task. • Legacy Planning After taking all of the above into account, one of the final questions to consider is how to transition assets not needed for oneself to

others, be they family, charities, church or personal causes. The tax laws covering estate planning are currently in flux but clarification will hopefully come early next year. There are many strategies available that won’t necessarily be affected by the estate tax changes, so there is no reason to wait until the rules are clarified. As you approach the holidays and the new year, why not make a resolution to create a plan appropriate for your circumstances or revisit the plan you already have to determine if changes are warranted. There are many professionals — attorneys, CPAs and financial planners — who can assist you in this process. Celebrate the holidays with a gift to yourself and your family with a well-planned future. For more information about financial planning services, please contact John Evans at Evans Advisory Services at 814/464-0224 in Erie, 814/806-1688 in Meadville or john@evansadvisoryservices.net. John Evans is the president of Evans Advisory Services with offices in Erie and Meadville. He is a graduate of Bucknell University and the University of Pittsburgh’s Katz School of Business. He is a Certified Public Accountant, a Certified Financial Planner™ and a Chartered Retirement Planning Counselor. He holds both insurance licenses and a securities registration and is actively involved in the Erie community, serving on several nonprofit boards. Investment management services provided by Brookstone Capital Management, LLC, an SEC-registered investment advisory firm.

December 2012 > www.mbabizmag.com > 13

ECONOMIC The pains of recovery can be felt across the country and are likely to continue well into 2013. Economists say that the U.S. unemployment rate is expected to linger at or near 8 percent, with only tepid growth in the coming year. “A lot of folks are looking for a lukewarm outlook, and they are probably right,” explains James Kurre, Ph.D., director of the Economic Research Institute of Erie (ERIE) and associate professor of economics at Penn State Erie, the Behrend College. “This recovery has been very weak, very anemic.”

James Kurre, Ph.D.

Adds Val Vlad, Ph.D., also an assistant professor of economics at Penn State Erie, “This is a long and painful recession, and the recovery cannot be a very rapid one; it is a very slow and painful one.”

“Now that President Obama has been re-elected, he may take that as a mandate to expand the role of the government and push for more involvement in health care and other sectors of the economy,” says Kurre. “But there‘s no free lunch, and that means the money has to come from somewhere. The government has no resources of its own; anything it spends it has to take from the private sector, where the wealth is generated. That implies higher taxes, and more resources taken out of the more productive private sector of the economy and moved into the less-productive government sector. And this kind of redistribution hurts incentives to produce. “All of this could short-circuit the recovery,” Kurre continues. “And given Erie‘s increasing reliance on the health-care industry, implementation of Obamacare could slow that sector‘s growth.”

Val Vlad, Ph.D.

“We see what happens to the United States with recession, and it is going on all over the world,” says Vlad. “It is now harder to recover because you have to have a lot of synchronization among all those countries.” The good news? “In the short term, what happens in Europe, or a small country like Greece, may affect the United States, but I think we have more stability than we see,” he says. “We gained some ability to deal with painful shocks because we went through almost four years of recession.”

14 < www.mbabizmag.com < December 2012

Another major cause of economic uncertainty has been the U.S. presidential race, as employers wonder if they are going to face huge increases in mandates for health-care costs and insurance, which are going to affect their bottom line. Post-election, some of that uncertainty should disappear, economists say, but depending on which way the election goes, it could lead to a longer period of recovery and a more anemic recovery.

Four and half years after the recession‘s peak, the United States is still not back to where it was in 2008. “That is unprecedented in the post-war period,” says Kurre. “At the national level, this recession is dragging on forever.”

It is also one that has been overshadowed by uncertainty, spurred by the international markets — and slowing economies in China and Europe.

Political Implications

Fed Stimulus

According to both economists Vlad and Kurre, the Fed has been unusually accommodating in trying to stimulate the economy and, at some point, is going to have to start reining things in. “The Fed has been using this stimulus policy to jump-start the economy from the beginning because it is very quick and you don‘t need an act of Congress,” explains Vlad. “So they have used it repeatedly without much success.” In doing so, by making credit cheaper and pumping more money into the economy, the Fed runs several risks — from lowering interest rates so much that it reduces lending for everyone to long-term inflation.

C FORECAST Recovery Still Has a Long Way to Go “We haven‘t seen the inflationary pressures yet but if they keep doing what they are doing, that is going to show up and then we are going to have the second big problem besides unemployment and slow growth; we are going to have the inflation problem laid on top it and then suddenly we will be back in the late ‘70s and early ‘80s,” says Kurre. “But the Fed keeps saying there is not a problem, that they are going to be able to take the excess money out when they need to, and I sure hope that they are right. But in the past they haven‘t been able to do that.”

have been growing — post-secondary, especially,” says Kurre, “so the colleges have been growing and that has been helping stabilize the economy out of this recession.” Yet one of the biggest surprises has been that of manufacturing, which economists say has done something very different this recession. According to Kurre, Erie‘s patterns since the late ‘70s have shown a downward trend in manufacturing employment >

Taxes and Spending

The United States already runs the risk of a far deeper recession if lawmakers fail to avert the “fiscal cliff.” Without action by Congress, the country faces a combination of lower spending and higher taxes that is expected to extract about $600 billion from the economy, starting January 1. Economists say the question is whether government, specifically the federal government, will get its act together to avoid it. “Do they have a gun to their head and are they going to be forced to actually find ways to cut spending and make things more efficient by cutting out some of the loopholes in the tax system and perhaps simplifying it?” asks Kurre, “Or are they going to play the same political games and just push it on to the next administration?” “The key question is: ‘Will government do what‘s necessary to get its fiscal house in order?‘ ” he says. “If not, expect to see rising interest rates and/or rising inflation, both of which are bad for business and consumers.”

Thriving Sectors

Throughout the recession, there are still some bright spots amid the aches and pains. According to Kurre, almost every single month we have added jobs in the health-care sector nationally and in the local economy, which has helped offset some of the decreases that we have seen. “Locally, our education sector has been strong and our colleges

ELI Expects Continuing Growth in Erie Employment Penn State-Erie’s Economic Research Institute of Erie (ERIE) recently released its fifth issue of the ERIE Leading Index (ELI) for the second quarter of 2012, bringing more promising news for the Erie economy. According to researchers, the index grew in eight of the past nine months and shows no sign of turning downward in the near future. “This suggests that a turning point and a recession are unlikely to occur in the next six months to a year,” according to ERIE, “and we are cautiously optimistic that growth in Erie employment should continue unimpeded.” The purpose of ERIE, established in 1982, is to collect, analyze, interpret, and disseminate data and information on the Erie regional (Erie County) economy. To view the latest ELI report due out mid-December, visit www.ERIEdata.org.

December 2012 > www.mbabizmag.com > 15

as firms find ways to be more productive to turn out the same amount of goods. Typically this employment level stabilizes and stays relatively flat until the next recession comes along, then falls off a cliff again.

“It is tough on the people who are the workers in those sectors and the manufacturers. But again, the long-term prospect for the economy is very positive because we get more efficient and learn how to do things better.”

This time around, “We have added more than 3,300 manufacturing jobs and that is a definite break in pattern from our last few recessions here and a very welcome one,” says Kurre. “Manufacturing jobs tend to be higher paying jobs and so that is helping pull the economy up, there is no doubt about it with these increasing employment levels.”

Ultimately, this means that weaker businesses will be driven out by competition and there will be more resources for those businesses that are able to manage them efficiently — through higher productivity and innovation.

“What we also see and your survey (the Manufacturer & Business Association Quarterly Economic Snapshot Survey for the third quarter of 2012) shows is an increase in overtime, so more employees and working more hours, that pumps a lot more income into the local economy, which helps all the other sectors locally too,” he adds. “So that has been helping with the recession as well. If that trend continues, we see more re-shoring and more jobs for Erie manufacturers that is going to help pull us out of this recession even faster than you are seeing other places around the country. That is why I tend to be a little more optimistic.” In addition, the MBA survey results from the second quarter show that energy costs have decreased for 22 percent of respondents in the last three months, which is good for businesses and especially high-usage energy firms like manufacturers. “There is some good news,” adds Kurre, “mixed in with the lukewarm stuff along the way.”

Productivity Gains

Economists say one of the benefits of a recession, especially for businesses, is the greater focus placed on productivity: How can I do more with less? How can I work smarter rather than harder? How can I get more output from less input and cut my costs? “Employers are having strong incentives to try and figure out how to increase the bottom line and when they do that it means they are getting more productive and reducing costs for all of us consumers so standard of living goes up,” says Kurre. 16 < www.mbabizmag.com < December 2012

“Look, we are in this car that stopped working,” says Vlad. “We have to put it back into drive to move us from Point A to Point B.”

According to results from the Manufacturer & Business Association’s latest Economic Snapshot Survey results for the third quarter of 2012, employers were mostly business as usual when it came to looking ahead three months at their businesses: • PICK UP — 37.5 percent • SlOW DOWN — 16.2 percent • NO CHANGE — 46.3 percent The majority of these business owners also were not expecting their employment levels to change significantly: • INCREASE — 21.2 percent • DECREASE — 5.8 percent • STAY THE SAME — 73 percent To learn more about the survey results, visit the Members Only section on www.mbausa.org.

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Dave Slomski Vice President of Business Banking (814) 455-4481

James Jackson Business Banker (814) 455-4481

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Eugene Cirka Business Banker/ Crawford County (814) 337-7929

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HR Connection JOB DISSATISFACTION DRIVES RESIGNATIONS, SURVEY FINDS Lack of training, motivation and workplace challenges are some of the biggest reasons employees leave their jobs, and more businesses need to focus on them in order to improve retention, according to a new survey conducted by employee and customer improvement firm Insync. The research questioned more than 11,000 respondents from 40 different organizations, and also revealed businesses have the power to change 80 percent of staff turnover with the right techniques. “Our research has found employees leave primarily due to the job itself and not for reasons such as pay and conditions or relationships with managers or peers. If a job is inherently unfulfilling or unsatisfying it’s highly likely that employees will look elsewhere for other opportunities, no matter what incentives are in place,” said Insync Chief Executive Nicholas Barnett. The survey claims businesses can save $280,000 per year for every 100 staff they employee by reducing turnover by just 5 percent, assuming an average salary of $75,000.

Ph: 814/455-0987 800/281-0142 18 < www.mbabizmag.com < December 2012

Fx:814/456-9680

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DEPARTMENTS > Contact: Stacey Bruce

Creditable Coverage Notification Explained According to the Centers for Medicare & Medicaid Services, www.cms.gov, the Medicare Modernization Act (MMA) requires “entities (whose policies include prescription drug coverage) to notify Medicare eligible policyholders whether their prescription drug coverage is creditable coverage.â€? This means that employers who sponsor a health plan offering prescription drug benefits must provide an annual notice to all Medicare-eligible participants that explains whether the prescription drug benefits offered under the plan are at least as good as the benefits offered under the Medicare Part D plan. The only employers exempt from this requirement are those that establish their own Part D plan or contract with a Part D plan. The Notice of Creditable Coverage must be provided in writing: • At least once a year before October 15 (the start of the annual Medicare Part D enrollment period);

• Whenever a Medicare-eligible employee, spouse or dependent enrolls in your health plan (this includes Medicare-eligible active working individuals and their dependents, Medicare-eligible COBRA individuals and their dependents, Medicare-eligible disabled individuals covered under your prescription drug plan and any retirees and their dependents); and • Whenever there is a change in the creditable or non-creditable status of your health plan’s prescription drug coverage. The MMA imposes a late enrollment penalty on individuals who do not maintain creditable coverage for a period of 63 days or longer following their initial enrollment period for the Medicare prescription drug benefit. This information is essential to an individual's decision whether to enroll in a Medicare Part D prescription drug plan.

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In addition, you must submit a Disclosure to CMS Form each year, reporting whether your prescription drug coverage is creditable or noncreditable. This form must be submitted electronically within 60 days of the beginning of each plan year. For example, if you are on a calendar year, you must submit the form by March 1, 2013. For more information, visit www.cms.gov or contact me at 814/833-3200, 800/815-2660 or psmith@mbausa.org.

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.

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The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

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‘The Best Little Hose and Belt House in Town’

From left: President and Owner Willy Sickert, Vice President of Sales Matt Sickert, CFO and Marketing Strategist Terri Hulihan, and Customer Service Technicians Mike Freeman and Dave Jeziorski.

Willy Sickert is a walking encyclopedia of hydraulic and pneumatic fittings, hoses, hydraulic tubing, gaskets, gauges and v-belts. He knows every square inch of his inventory by heart and he keeps his company’s shelves stocked with hard-to-find parts, knowing there are always customers who need them. “I don’t cut corners on inventory,” Sickert explains, “and our motto is, ‘if we can’t make it, you don’t need it.’ ” As president and owner of Sirco Industrial Supply, 2127 Caughey Road in Millcreek Township, Sickert is an expert in his field. With 32 years experience, he has tremendous product knowledge, enabling Sirco Industrial Supply to become the go-to provider for hoses and belts, hydraulic fluids and safety supplies in the region. Whether you’re a hobbyist restoring an old car, boating enthusiast, a small lawncare operation, or major manufacturing concern, Sirco Industrial Supply can get you the parts you need or, in many cases, customize them to your specifications. “The advantage of our company is that we are willing to stock, which larger corporations can’t enjoy because they have to share their inventory,” notes Sickert. “And because we control our own inventory, we stock more than most. We are usually the second or third source in desperation of trying to find the product, and they eventually become our customer because they don’t have to search anymore.” According to CFO and Marketing Strategist Terri Hulihan, Sirco Industrial Supply’s loyal customer base includes approximately 600 regular customers and 5,000 in the tri-state area that

22 < www.mbabizmag.com < December 2012

the company services annually. These customers represent a wide range of industries from government, automotive, plastic injection, tool-and-die, logging, earth-moving equipment, as well as gas-well production. Locally, it’s a Who’s Who list of employers that includes everything from Eriez Magnetics, Ridg-U-Rak, Inc., American Turned Products and All-American Hose, to Erie Strayer, Urick Foundry, Maple Donuts, Erie Press Systems, Erie Bronze and Aluminum, Waldameer Park & Water World, even the Victorian Princess. Sirco also supplies to businesses outside the region, such as Blackstone Concrete in Jamestown, New York, and Swartfager Welding in Knox, Pennsylvania, and even as far away as Pittsburgh, Cleveland and Buffalo. As Sickert explains, Sirco has come a long way since his father Fred founded Sickert Rubber Company in 1961. The family owned business, which specialized in mechanical drives, operated out of the Dorme Motel on West 26th Street until 1973 when a fire broke out, flooding the basement operation. It was then that the Sickerts moved the business to its current 10,000-square-feet location on Caughey Road, shortened the name to Sirco, and incorporated it in 1974. In 1981, Willy, then a Gannon College student, came on board to help his father and mother with the business during some trying financial times. He paid off the debts, got the business back on its feet, and by 1995 purchased the company, expanding the name to the present-day Sirco Industrial Supply.

“We’re from New Orleans and we’re out here (in Erie) working, and Sirco always has what I need at any given moment. If I don’t have it, they can get it for me in a couple of hours. That’s why I deal with Sirco Industrial Supply… I’m treated like I’m from here. They go the extra mile.” — James Thomas, Superintendent Delta Coatings, Inc., Belle Chase, LA

Sirco Industrial Supply can get you the parts you need or, in many cases, customize them to your specifications.

“We’ve had a long history between our two companies — they’re starting into their third generation, and we’re starting into our fourth generation. They’ve always given us great service, good prices and good quality product.” — Jim Carstater, Purchasing Agent Erie Strayer, Erie, PA

Sirco offers a wide variety of safety equipment and accessories.

“I wasn’t prepared for it, and I’m probably still not,” laughs Sickert. “I am a worker and I’m good with customers, and I have tremendous product knowledge.” This knowledge and service keeps customers coming back time and again. According to Willy’s son Matt, vice president of Sales and service technician, Sirco Industrial Supply outshines its competition with its professional, quality service — and unbelievably low prices. “We have people driving two-plus hours to get to us because they don’t want to go anywhere else, so they come here to get it done right,” he says. “Our niche is everyone’s can’t do is our can do.” The company also offers flexible business hours, 24-hour service plans, and onsite repairs when needed. And it’s not uncommon for a customer to walk out the door with O-rings, free of charge. “They usually come back because we make them feel welcome,” says Matt. Sirco Industrial Supply, which has doubled its work force in the last year alone, is going to great lengths to renovate its retail space to handle the increase in walk-in customers. The storefront offers an array of products, from extreme temperature work boots from Canada to safety glasses, gloves, jackets, road reflectors, traffic cones, snow melt, wiper blades and automotive fluids. As Matt explains, “We are headed toward more of a retail-driven versus OEM. I really feel like we are going to be like Gerlach’s but with a NAPA store.” And it’s why Sirco Industrial Supply continues to be not only one of the best-kept secrets, but also “the best little hose and belt house in town.” For more information about Sirco Industrial Supply, visit www.sirco-industrial.com.

About: Sirco Industrial Supply offers a wide range of hydraulic and pneumatic fittings and hoses, as well as brake lines, hydraulic tubing, Roadrunner high performance braided lines, safety equipment, O-rings, sheet rubber, belts, conveyor belts and v-belts. They also are a local source for Caterpillar assemblies. Location: 2127 Caughey Road in Millcreek Township Business Hours: 7 a.m. to 5 p.m. Monday through Friday; 8 a.m. – Noon Saturday Phone: 814/838-2059 Website: www.sirco-industrial.com

December 2012 June 2011 > www.mbabizmag.com > www.mbausa.org > 23

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Election Reflections: What We’ve Learned from the 2012 Road to the White House Dr. David Kozak is a distinguished professor of Public Policy and director of Leadership Erie at Gannon University. He is an author, editor, and contributor to more than 10 books on U.S. government and politics. He has attended the national nominating conventions of both parties beginning in 1984 as academic in residence doing media commentary for C-Span, CNN, and the BBC.

Each presidential election has its unique aspects that make it historic, but 2012 has more historical aspects than most. More money was spent than ever before, especially with the advent of “super pacs” (unaffiliated and unlimited spending). There was no natural Republican heir; President Obama seemed vulnerable leading to a host of potential GOP challengers; we seemed to have a different Republican frontrunner each month; former Governor Romney finally nailed down the nomination in June; and, we had the latest conventions ever — and back to back no less. For sure, this situation was dynamic, fluid and volatile; surprises dominated (who would have thought former Pennsylvania Senator Rick Santorum would finish second); and throughout we learned to “expect the unexpected!” Of course, 2012 will be known as an election where a sitting president stood for re-election. But, the effort for a second term occurred against the backdrop of wicked problems: crushing deficit and debt; high, consistent unemployment; intense national political divisions and polarization, especially concerning the Affordable Care Act (ACA); and a looming “fiscal cliff” (come January 2013 the Bush tax cuts expire and an automatic sequestration of across the board spending cuts kick in, both of which auger a return to recession). The presidential election of 2008 saw nine “red states” (Republican in 2000 and 2004) go “blue” (Democrat): Florida, North Carolina, Virginia, Ohio, Indiana, Iowa, New Mexico, Colorado and Nevada. The 2010 midterm elections constituted the second “change” election in a row for a country whose politics could best be described as “no ordinary time” and “coalitions made of sand.” The midterm elections turned over control of the U.S. House to the Republicans as they won a whopping 66 seats — a modern record pickup. Moreover, for the first time in history, we had an alignment of a Republican House, Democratic Senate (barely), and a Democratic president. After the Supreme Court upheld ACA, what seemed to be a run-of-the-mill re-election bid then became really interesting with a “game changing” first debate on October 3 when challenger Mitt Romney scored big and the president did not. The Republican states that went Democrat in 2008 became the battlegrounds, along with Wisconsin, Minnesota, Michigan, New Hampshire, and even Penn-

sylvania at the close. Turnout and the swing voting blocks (independents and undecideds, persuables, suburbanites, Latinos and Hispanics, white southerners, and Republican women) were the key variables. In the home stretch, governance questions came to dominate. For the president, it was: What will be the secondterm agenda and how would an “Obama Two” both be an improvement over the first term while avoiding “the second-term blues,” since there has not been a successful second term in modern times? For the challenger, it was: What is his plan for taking over the government and chartering a new course; and how will this lead to an immediate improvement, with a President Romney at the helm steering the ship of state? In the end, the American electorate had to decide if the economy and President Obama’s stewardship were as bad as other first-term presidents who were “fired” and denied a second term: Ford, Carter and George H.W. Bush. In the end, Hurricane Sandy provided another huge gamechanger, since every day the country focused on disaster was a good day for the president and a bad day for his challenger because it took focus off the economy. After billions spent and very intense campaigning, the majority of voters — in both the popular vote and Electoral College vote — chose the status quo: the re-election of a Democratic president, a Republican House, and an even slightly more Democratic Senate. Making all work with some coherence now becomes the task at hand. Finally, we all learned how difficult it is to dislodge a sitting president. Never ever underestimate the ability of a White House to spin things in their direction. PENNSYLVANIA VOTER STATISTICS 2012 Presidential Race: • Barack Obama won with 52 percent of Pennsylvania's votes – 2.87 million vs. Mitt Romney’s 2.58 million. • 5.5 million Pennsylvanians voted in the election, which is about 50 percent of the voting age population. For more information, visit www.mba-ga.org. December 2012 > www.mbabizmag.com > 25

HR Q&A MUST BONUSES BE INCLUDED IN OVERTIME PAY CALCULATIONS? Nondiscretionary bonuses must be included, while discretionary bonuses may generally be excluded. Nondiscretionary bonuses are bonuses that the employer is obligated to pay, and they must be included in overtime pay calculations. Examples of nondiscretionary bonuses include bonuses promised in an agreement (such as an employment contract or collective bargaining agreement), bonuses tied to performance evaluations, incentive plan bonuses, or any bonuses based on a set criteria for an employee, a group or an entire company. Nondiscretionary bonuses also include service anniversary bonuses, attendance bonuses, bonuses tied to working undesirable shifts (sometimes in the form of shift differentials), production-oriented bonuses and retention bonuses. Discretionary bonuses are not considered overtime eligible, as defined in FLSA 29 CFR 778.208-215. To be considered a

discretionary bonus, all four criteria must apply: • The employer retains discretion whether bonus will be paid. • The employer retains discretion on the amount of the bonus. • The employer retains discretion about whether a bonus will be provided very near the time frame it covers. • The bonus must not be paid pursuant to any prior contract, agreement or promise. Examples of discretionary bonuses employers may be able to exclude from overtime pay are holiday or gift bonuses, spontaneous bonuses (sometimes referred to as “spot” awards) and percentage of total earnings bonuses (bonuses based on total compensation earned during a specific time frame). IF MY COMPANY IS SUBJECT TO A DEPARTMENT OF LABOR WAGEAND-HOUR AUDIT, WHAT CAN I EXPECT? The U.S. Department of Labor has the

ability to audit employers at any time, but the most common reason for a department audit is a complaint from an employee. The Department of Labor also has targeted employers in low-wage industries for wage-and-hour-violations, particularly in agriculture, day care, restaurants, garment manufacturing, guard services, health care, hotels and motels, janitorial services, and temporary help. Labor officials typically provide little advance notice of an audit. However, an employer can request time to gather records. Usually, the amount of time granted will depend on the auditor. At the end of the audit, the employer should ask the auditor to provide a summary of the results of the investigation. This information will help the employer review options for resolutions if any violations are found. The Manufacturer & Business Association’s HR Division can assist regarding the HR audit process. Contact us at 814/833-3200 or 800/815-2660.

DRIVEN BY RESULTS Attorneys at Knox McLaughlin Gornall & Sennett, P.C. are driven to achieve positive results. That is one reason for our recognition by U.S. News – Best Lawyers® “Best Law Firms” as a Pittsburgh Tier 1 firm in five practice areas for 20112012, including Commercial Litigation, Medical Malpractice Defense, Public Finance, and Workers’ Compensation Defense. We are also the only firm ranked in any Pennsylvania or New York metropolitan area as Tier 1 for Closely Held Companies and Family Businesses Law. The Knox firm has been providing responsive, innovative legal services to a wide array of clients since 1958. Whatever your legal needs, you can count on our team to provide sound legal advice and deliver results.

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Erie, PA

North East, PA

26 < www.mbabizmag.com < December 2012

Jamestown, NY

814-459-2800

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DEPARTMENTS > Contact: Stacey Bruce

Employee Benefit Trends Revealed According to the Society for Human Resource Management (SHRM)’s 2012 Employee Benefits research report, the employee benefits landscape has changed profoundly. As such, employers are shifting employee cost accountability and decisionmaking to employees. According to SHRM’s report, here are some key findings for employers: • Health care and welfare: Health savings accounts (HSAs) have continued to gain in prominence in recent years. • Preventive health and wellness: Over the last five years, there has been an increase in the percentage of organizations providing health and lifestyle coaching, health-care premium discounts for getting annual health risk assessments, health-care premium discounts for not using tobacco products, and rewards or bonuses for completing certain health and wellness programs.

• Retirement savings and planning benefits: Employer-sponsored retirement plans continue to shift toward defined contribution retirement savings plans and Roth 401(k) savings plans. However, there was a decline in the percentage of organizations that offered employermatching contributions to the defined contribution savings plans. • Financial and compensation benefits: The most significant decreases were to automobile allowances for business use of personal vehicles, business cell phones or smart phones for personal use, credit unions, and employee computer purchase discounts (not a loan). • Leave benefits: Paid time off plans, which combine traditional vacation time, sick leave and personal days into one comprehensive plan, continue to gain in popularity.

and elder-care referral service, these benefits have remained relatively stable in recent years. • Flexible working benefits: After slight declines between 2008 and 2010, the percentage of organizations offering some form of telecommuting is once again trending upward. The Manufacturer & Business Association is compiling a Regional Benefits Survey for northwest Pennsylvania. Look for results on a local scale to come in early 2013 at www.mbausa.org.

Stacey Bruce is the HR supervisor at the Manufacturer & Business Association.

• Family friendly benefits: With the exception of adoption assistance

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REDUCING POVERTY BY INVESTING IN EDUCATION. Research shows that a strong educational foundation leads to better employment opportunities and a more competitive workforce. Higher educational attainment is a direct corollary to higher income, better health, and a host of other factors that make individuals, and communities, more productive. By 2025, United Way of Erie County has challenged the community to prepare at least two-thirds of our high school graduates to succeed in post-secondary education. Together we have the opportunity to change the lives of thousands of people across our region, generating a ripple effect of economic growth and stability.

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30

People Buzz MACDONALD ILLIG ATTORNEYS MAKE BEST LAWYERS LIST The law firm of MacDonald, Illig, Jones & Britton, LLP in Erie 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® 2013.

Attorney Murphey, chair of the Insurance 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.

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. He is among a very distinguished group of attorneys who have been listed in Best Lawyers for 20 consecutive years.

MacDonald Illig also has announced the addition of Nicholas R. Pagliari as a partner with the firm. Pagliari is a 1998 graduate of the Pennsylvania State University and a 2001 graduate from the University of Dayton School of Law.

Attorney Taft, co-chair of the firm‘s Labor & Employment Practice Group, is recognized for his work in the area of commercial litigation. A principal 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 the Litigation Practice Group, is recognized for his work in the areas of commercial litigation and construction litigation. He has spent his entire legal career litigating disputes in state and federal courts as well as arbitration tribunals. Attorney Shaw, chair of the Environmental Law Practice Group, is recognized for his work in that area of the law including environmental litigation, compliance and permitting matters.

After obtaining his law degree, Pagliari served as a law clerk in the United States Bankruptcy Court, N.D. GA. He previously practiced law at Reed Smith LLP in Pittsburgh and since his return to Erie has focused on corporate restructuring and bankruptcy, bankruptcy related litigation and collection matters. He will be associated with the firm‘s Bankruptcy & Creditors‘ Rights and Business Transactions practice groups. NEW SKIN SURGEON JOINS MEADVILLE MEDICAL CENTER Sara A. Jurado, MD, a board-certified dermatologist and micrographic skin surgeon, recently joined the Meadville Medical Center active medical/dental staff. Dr. Jurado received her medical degree from the University of Toledo, College of Medicine in Ohio. She also holds a B.S. degree in biology from the University of Massachusetts in Boston. Her

DEPARTMENTS > Contact: Karen Torres

internship, dermatology residency, and fellowship training in dermatology and skin cancer surgery were all completed at the Cleveland Clinic. Dr. Jurado also is fellowship trained in Mohs surgery, which is a form of microscopically controlled surgery used to treat common types of skin cancer. Her practice, Meadville Dermatology & Skin Surgery Institute, is located at 149 North Main Street in Meadville. ERIEZ ANNOUNCES PRODUCT ENGINEERING PROMOTION Eriez, a world authority in advanced technology for magnetic, vibratory, inspection and flotation applications headquartered in Erie, recently promoted Nicole Skias to product engineering manager for the Eriez Hydroflow line. As product engineering manager, Skias will be responsible for all mechanical engineering functions pertaining to the Hydroflow line, as well as oversight of production control and purchasing activities associated with the product line. Skias earned a bachelor‘s degree from West Virginia Wesleyan College. Prior to joining Eriez, she was employed as a mechanical engineer at the Institute for Scientific Research Inc., a NASA subcontractor in West Virginia, for five years.

December 2012 > www.mbabizmag.com > 31

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THE EXPERTISE TO HELP YOUR BUSINESS PROSPER. RBS Citizens is one of the world’s leading commercial banking institutions. Our affiliation with the Royal Bank of Scotland Group (RBS) allows us to extend our reach to more than 38 countries, where we serve as a source of local expertise, have in-market operations and provide dedicated client service wherever you do business. Whether you require solutions for optimizing cash management, maintaining liquidity or managing risk, we have the depth of resources to help. We understand and address your unique needs while providing premier commercial banking services and products plus the high degree of personalized attention you deserve. For more information on how we can help your business call: John Dill, Senior Vice President (814) 453-7265 Ed Kloecker, Senior Vice President (814) 453-7233 Doug Patton, Senior Vice President (814) 453-7212

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