July 2015 Business Magazine

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

VOLUME XXVIII, NUMBER 7

Rena Zurn, granddaughter of Tom Lord, and Judy Alstadt, wife of late chairman emeritus of LORD, Donald Alstadt, cut the ribbon at the new Erie facility.

Loyalty to the Community / Page 13

JULY 2015


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July 2015

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

7 / Health Matters

3 / Spotlight

How practicing mindfulness can promote better health.

Joe Sinnott, Erie mayor and Roar on the Shore Board member, talks about the economic benefits of the annual Roar on the Shore® charitable motorcycle rally and the City of Erie’s unwavering support of it.

AMANDA BUDZOWSKI

9 / Legal Brief Why a Charitable Remainder Unitrust (“CRUT”) is a great planning tool for charitably inclined proprietors contemplating an exit strategy.

11 / On the Hill Angela Zaydon, the MBA’s state government relations representative, addresses why constituents must develop relationships with their legislators and staff.

NICHOLAS J. HOLLAND

13 / LORD Corporation Events

A sold-out Associationcrowd enjoyed the Conversatio’s 110th Annual EveManufacturer & Bus Shell Oil Comn with T. Boone Picknt featuring the “A iness the Erie Insu pany President Johens,” moderated by the event, rance Arena. For exten Hofmeister on Mayformer visit the Pho to Gallery nsive photo coverag 20 at on www.m e bausa.org. of The Associatio

13 5 11

Officials explain how this diversified technology and manufacturing company is giving back to the northwest Pennsylvania community with the recent relocation to its Robison Road facility.

n’s Immediate Tim Hunt Past Chair er man Hunter is was joined by his wife the Rolled Rings president and CEO Gretchen. , a sponsor of of the even McInnes t.

Lawrence T. bishop of Persico, Erie, led the invocation .

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22 / 110th Annual Event

Associatio n Chairman Rebecca, Bill Hilbert welc to Erie. Hilbe ome keynote spea Jr. and his wife, of the spon rt is president of ker T. Boone Picke ns Redd sors of the Annual Even og Industries, one t. Trumpete r James Singe of the Natio r nal Anthem performed a rousi ng as guests sang along rendition .

The Associatio n intro 2015-201 6 Board of duced the Associatio Governors n . Achieveme Vice President John nt recognitio Krahe (righ and Willia m Giermak, ns to Maurita Meadt) presented Lifeti me two late busin son , widow of Ed Mead, ess leaders. of Chet Giermak, in memory of the

The highl ight of the of Citizens night for Affordable was a conversat ion with Energy and the “Oracle moderator John Hofm of Oil” T. Boone Picke eister ns.

See photos from the Association’s 110th Annual Event with the “Oracle of Oil,” keynote speaker T. Boone Pickens, and moderator John Hofmeister, founder of Citizens for Affordable Energy and former president of Shell Oil. The Associatio n’s 2015-201 Executive 6 Committe e.

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The Associatio Health Plan n thanked repre sentatives Rings, Logis and PNC and even from majo t spon r sponsors tics Plus and (from left) FMC Techn sors PHB/Reddog UPMC Industries ologies. , McInnes Rolled

Charles “Boo UPMC Healt ” Hagerty (center), of major h Plan, ming sponsor les at the member recep tion.

DEPARTMENTS > 4 / Business Buzz 18 / HR Connection

June 2015

> www.mbab

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20 / HR Q&A 24 / People Buzz

2015 Raffle Drawing! It’s FREE! Register now to become a new subscriber to the digital edition of the Business Magazine at www.mbabizmag.com/subscribe and get a chance to win a Roar on the Shore® prize package that includes two tickets for the Bringin’ in the Roar Bike Parade, two tickets to the Rocket 101 Beer Garden for Thursday night, an official 2015 ROAR® T-shirt and Roar on the Shore® collector pins, hat, shot glass, keychain, patch and koozie! Drawing to be held July 9. July 2015 > www.mbabizmag.com > 1


PROJECT FIRST STEP

Building stronger families one step at a time

2015 ROAR ON THE SHORE CHARITY ®

Erie Homes for Children and Adults

226 East 27th Street Erie, PA 16504 814.454.1534

www.ehca.org

Thank you for supporting healthy babies

2 < www.mbabizmag.com < July 2015

• Is it possible to reduce the incidence of developmental disabilities by designing a program aimed at disability prevention? • Will education, advocacy, and connection to community resources result in safer and healthier home environments? • Can steps be taken to keep biological families intact or prevent the need for ongoing child protective services?

The answer is YES—through Project First Step. Project First Step (PFS) assists expectant women who are at risk of having an infant born with a disability, families caring for children with disabilities, and families at risk of having their children removed from the biological home. Most PFS clients live in poverty and are often dealing with additional challenges of physical or intellectual disabilities, homelessness, domestic violence, drug or alcohol dependency, and/or mental health concerns. PFS achieves a 96% success rate for healthy, full-term babies born within high-risk populations. This rate is equivalent to the rate of healthy births within the general population.


SPOTLIGHT > The Roar on the Shore® bike rally was created in 2007 for a greater purpose — to serve as a major fundraising event in the Erie, Pennsylvania region. Now, in its ninth year in 2015, Roar® has quickly become one of the fastest-growing free bike rallies in the United States. The Business Magazine recently asked Joe Sinnott, Erie mayor and Roar on the Shore Board member, about the economic benefits of the rally and the City of Erie’s unwavering support of it.

Each July, bikers and bike enthusiasts descend on downtown Erie to enjoy three days of rides, bands, bike contests and more – with an estimated economic impact of more than $20 million. Why do you believe that this rally is such a great event for the City of Erie to support? Roar on the Shore® has a monumental impact on the Erie region and especially our downtown. Each year, over 100,000 people come to our community to enjoy this event. This results in an extensive economic impact throughout Erie County and is an excellent opportunity to welcome participants from all over the country to experience our wonderful city. We find that once people visit the Erie region and see all that we have to offer, they come back again with their family and friends to enjoy our many other attractions. Roar® is a great way to showcase our city and grow our tourist economy. We are very fortunate that the community embraces this event and helps us to put our best foot forward for our many guests. Please explain how the City assists with the rally. The City of Erie has been a partner in implementing the Manufacturer & Business Association’s (MBA) vision for Roar on the Shore® since its inception. Because the rally is centrally focused in Erie’s downtown, primarily in the Perry Square area, the City assists in the planning and executing of the logistics of the rally as well as traffic and public safety operations. Although the rally is put on and operated by MBA personnel, the City tries to help in any way we can to make sure the event runs smoothly and successfully each year. You are known as Erie’s “biker mayor” and lead Thunder on the Isle: The Mayor’s Ride during the rally each year. 2015 is the first time that this ride will be dedicated to military and first responders. What does it mean to you to be a part of this special event? I am very pleased and proud of the turnout we’ve had over the years and the money we’ve been able to raise to support the charities. This year will be extra special because we are dedicating the ride to our military and first responder personnel. At various times throughout the existence of Roar on the Shore®, we have honored first responders either through the charity or other special events. It is a pleasure to now dedicate The Mayor’s Ride to these brave men and women who help to define our community. I look forward to having record-breaking participation in this year’s ride to show our armed forces and public safety personnel that we, as a community, appreciate them and support them in all that they do. Each year, the rally gets bigger and we see more and more out-of-towners return to Roar® as part of their summer vacations. What do you think of this response? Every year, I have the opportunity to see people that I’ve met in previous years who travel, some times great distances, to attend Roar on the Shore® as one of their annual summer destinations. That says volumes for the quality of the event that the MBA has developed. There are many events throughout the country that cater to motorcycle enthusiasts, but Roar on the Shore® has become a favorite amongst those who have experienced the many rides, bands and other activities the Roar® offers throughout the week. Most say that it is the first-class quality of the rally that makes it a top priority when determining which events they will attend. What are your hopes for the rally in the future? I am hopeful that the Roar® will continue to grow as it has each and every year since its inception. It is a great event for this region and has been embraced by the community. Each year, we see a whole host of new participants as well as the tens of thousands who return each and every summer. Roar® has become a great economic driver for our tourism trade, and we hope it will continue to grow and expand for the benefit of the entire region.

Contact: Karen Torres

VOL. X X VII, NO. 7 JULY 2015 Manufacturer & Business Association Board of Governors

Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Phil Katen C. Bruce Kern II Paul Kenny Jeff Plyler Mark Rose Greg Sbrocco Mike Weber

Editor in Chief

Ralph Pontillo rpontillo@mbausa.org

Executive Editor

Managing Editor & Senior Writer

John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org

Contributing Writers

Amanda Budzowski Nicholas J. Holland Angela Zaydon

Feature Photography

LORD Corporation

Additional Photography

Meghan Badaloto Rob Frank Casey Naylon

Advertising Sales

Patty Welther 814/833-3200 pwelther@mbausa.org

Design, Production Printing Concepts Inc. & Printing printcon@erie.net

ON THE COVER: LORD Corporation recently celebrated its 90-year legacy of innovation in Erie with a ribbon-cutting ceremony for its new state-of-the-art facility. For the full story about how the company is contributing to the northwest Pennsylvania community, see page 13. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2015 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

July 2015 > www.mbabizmag.com > 3


Business Buzz LOGISTICS PLUS INTRODUCES NEW LOGISTICSPLUS.NET WEBSITE

and etntplus™ for global supply chain management.

Headquartered in Erie, Logistics Plus Inc., a worldwide provider of transportation, logistics and supply chain solutions, announced that is has introduced a new and improved www.logisticsplus.net website. The new website has been designed to provide an enhanced customer experience with improved navigation and functionality throughout.

A few notable features include a new “news & notes” blog, a daily “thought for the day” page from the founder and CEO of Logistics Plus, and a comprehensive

The site includes extensive information on the Logistics Plus service portfolio to help customers understand the complete range of transportation and logistics solutions the company offers. Online brochures, photo galleries, and videos help demonstrate the company’s passion for excellence and customer service while providing users many options to request more information, obtain a free supply chain analyses, or get rate quotations for LTL freight, truckload, expedited, and international cargo shipments. The website also serves as a portal to the Logistics Plus secured technology platforms: eshipplus™ for North American transportation, eworldplus™ for international freight forwarding,

directory that showcases every one of the company’s 40-plus locations and more than 350 employees. Users can even subscribe to receive instant email updates for all new Logistics Plus news, notes and thoughts for the day.

TREC HOSTS ‘LIVING IN THE AGE OF AIRPLANES’ PREMIERE The Tom Ridge Environmental Center (TREC) held a VIP reception this spring for the premiere of “Living in the Age of Airplanes.” More than 50 people attended. Filmed in 18 countries across all seven continents, the film explores the countless ways the airplane affects our lives — even when we don’t fly. The Erie International Airport/Tom Ridge Field sponsored the film premiere; Lou and Debbie Porreco and Bianchi Honda sponsored the reception. For film information for TREC’s Big Green Screen, visit www.trecpi.org.

Closing the manufacturing skills gap. One apprentice at a time. Fresh perspectives, innovative ideas, and problem solving by inspiring new talent! The NWIRC Advanced Manufacturing Apprentice Program connects manufacturers’ innovation needs with resources at regional universities and trade schools. We identify, screen, and facilitate selection of high-caliber science, technology, engineering and mathematics (STEM) students for your company. An apprentice can help accelerate your new product or process idea.

• Apprentices are available during any semester for 150 to 650 hours. • Mini-grants can assist with up to 50% of the apprentice wages. Contact us to jump-start your growth with an apprentice! nwirc.org • mgriffith@nwirc.org • (814) 450-9752 4 < www.mbabizmag.com < July 2015


DEPARTMENTS > Contact: Karen Torres

MAXPRO TECHNOLOGIES GRANTED U.S. PATENT FOR CONING, THREADING MACHINE The U.S. Patent and Trademark Office has issued Patent No. 9,015,915 to Maxpro Technologies, Inc., for its Coning and Threading Machine.

“The patent granted was based on the unique way in which the end of heavy-wall, high-pressure tubing can be chucked in a collet, coned, faced and threaded using a coning head and threading head which are mounted on a carriage that moves laterally between three positions to cone and thread the tubing,” says Paul Bowser, president of Maxpro Technologies. According to the company, the advantage to the customer is the ability to produce a high quality cone and thread on heavy wall high pressure tubing in a quick and efficient manner.

Headquartered in Fairview, Pennsylvania, Maxpro Technologies supplies all types of high pressure systems using Maximator® power products, designed by its team of engineers and produced by its technical staff. For more information, view the video of the new Coning and Threading Machine at wwwMaxProTech.com/MaxProVideo.html.

CHANNELLOCK INC. UNVEILS NEW RESCUE TOOL Channellock Inc., a family owned and operated plier and hand tool manufacturer based in Meadville, Pennsylvania, recently introduced it brand new 9-inch 86 Rescue Tool. According to the company and based on real-world feedback from first responders, the new 86 Rescue Tool is “designed for easy, intuitive, one-handed operation in high-stress situations.” In addition, the new 86 Rescue Tool is American-made and combines the versatile linemen’s head with more than five other tools into one so that first responders only have to carry one piece of equipment to accomplish multiple tasks. Channellock developed the 86 Rescue Tool specifically for firefighters by including multiple safety functions that are essential in emergency situations. For details, visit www.channellock.com.

July 2015 > www.mbabizmag.com > 5


The Manufacturer & Business Association. We don’t sell energy. We represent you, our members – employers who face increasing energy costs in an increasingly competitive environment. Through our new service, called EnergyAdvisors, we analyze your specific energy use, your energy needs, your energy costs. And then we work with pre-qualified energy suppliers who bid on your business, offering long-term fixed-rate pricing, variable rates indexed to the Day-Ahead Market and blended rate programs. What you receive are the best energy buys for your business. We can also provide energy curtailment options – how you can earn back as much as 40% of your bill simply by being on standby for reducing electricity during emergency power demands. If you want to save big-time on your energy bills, call me at 814-833-3200.

Chuck Jenkins cjenkins@mbausa.org

A MEMBER SERVICE OF MBA

2171 W. 38th Street • Erie, PA 16508 • MBAenergyadvisors.com


Health Matters

EDITORIAL > By Amanda Budzowski

Practicing Mindfulness Promotes Better Health Stress is a natural part of life, a normal reaction to some of life’s demands. What is not natural — or, healthy — is when after the body reacts naturally to an incident, it is unable to return to its normal relaxed state. Having your body on constant “high alert” is both stressful and unhealthy. In contrast, being able to successfully manage stress can result in numerous benefits: fewer health problems, increased productivity, and greater satisfaction on the job and elsewhere. One way to manage stress is to practice mindfulness. Mindfulness is a mental exercise that has been shown to improve physical health. It consists of deliberately paying attention to thoughts and sensations without making judgments. It requires purposely focusing attention on the present and accepting it. While mindfulness has generated a lot of attention in recent years, it is actually derived from a Buddhist concept that is over 2,600 years old. Practicing mindfulness has been scientifically shown to benefit physical, emotional and mental health. By practicing mindfulness, you can see a decrease in stress and in anxiety, improved concentration and attention, and increased self-awareness and emotional well-being. Because mindfulness has been linked to decreased stress, it can contribute to positive health perceptions and health behaviors. Different Forms There is no best way to practice mindfulness; different methods work better for different people. Organized methods, such as Yoga and tai-chi, have proven popular, but mindfulness can also be part of an individual

daily routine. For example, walking is a good mindfulness exercise, as it enables you to be aware of the sensation of walking as you do it. You feel the pavement and the way your body reacts to the exercise. Just taking a shower offers an opportunity to practice mindfulness, as you can concentrate on how the water feels on your body. Brushing your teeth is another opportunity, as you can pay attention to the sensations, tastes and movements involved. By practicing mindfulness, you are not simply “spacing out,” but, rather purposefully, paying full attention to your surroundings, your emotions, your thoughts and how your body feels. It is equally important to not judge the present moment. It is through judgments that dwelling on past feelings or bad situations can arise. By training your mind to focus on the present, you will not feel the stresses of regrets from the past or anxiety about the future. By controlling your mind in this fashion, you can eliminate stress. Techniques Practicing mindfulness does not need to be complicated. Some techniques that can help to reduce stress include: • Deep breathing – Focus on breathing from the stomach and not the chest. Focusing on the sound and the rhythm of your breathing can have a calming effect and help you stay grounded in the moment.

• Listening to music – Focus on the sound and vibration of each note. This keeps you in the current moment and promotes relaxation. • Relaxed breathing – Take deep, even-paced breaths that use your diaphragm to expand your lungs. When you slow your breathing, you take in more oxygen and breathe more efficiently. • Concentrated breathing – Follow the direction of your breathing in and out and all the way through. By keeping your mind focused on your breath, you sustain awareness and cultivate concentration. For information about health coaching, visit www.workpartners.com/productsservices/health-wellness/healthcoaching.aspx.

Amanda Budzowski is OnSite Health Coaching manager for UPMC Health Plan and UPMC WorkPartners, which are part of the UPMC Insurance Services Division. The UPMC Insurance Services Division offers a full range of insurance programs and products and also includes: UPMC for Life, UPMC for You, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions and Askesis Development Group.

• Meditating – When meditation is based on being mindful, or having an increased awareness and acceptance of living in the present moment, you can broaden your conscious awareness. July 2015 > www.mbabizmag.com > 7


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Legal Brief

EDITORIAL > By Nicholas Holland

Charitable Remainder Unitrust: An Exit Strategy for Closely Held Business Owners A Charitable Remainder Unitrust (“CRUT”) is a great planning tool for charitably inclined proprietors contemplating an exit strategy. A CRUT is an irrevocable trust in which an income stream is retained by the donor (or another non-charitable beneficiary) for a specified term (usually the donor’s life, or for any term up to 20 years). Upon the expiration of the term, the CRUT’s remaining assets are distributed to charitable beneficiaries selected by the donor. In order to qualify as a CRUT, the trust must: 1. Distribute income from the CRUT to the donor (or other non-charitable beneficiary) at least annually for a specified term. The income is determined based on a fixed percentage (between 5 percent and 50 percent) of the fair market value of the CRUT’s assets, which is recalculated each year. 2. The term must be for the remainder of the donor’s life, or a fixed term not to exceed 20 years. 3. The value of the remainder interest (the portion passing to the charitable beneficiaries at the end of the CRUT term) must be at least ten percent (10 percent) of the initial value of the CRUT. Benefits of a CRUT A CRUT is generally considered to be tax exempt (unless it has unrelated business taxable income, not discussed herein). Thus, a CRUT can be advantageous to a donor who owns highly appreciated property (including small business interests). The benefit of a CRUT is two-fold: 1) The donor can sell the highly appreciated property within the CRUT and defer (and possibly escape)

the income tax on the gain; and, 2) the donor is entitled to an income tax deduction in the year the CRUT is initially funded equal to the present value of the remainder interest passing to the charitable beneficiaries.

choosing. Thus, X has funded his retirement, while also leaving substantial funds to his community, and has avoided being hit with $1 million in taxes in the year of the sale of his business.

Example of a CRUT Used in The Sale of a Business Assume that proprietor (“X”) owns a business worth $4 million and that his tax basis in the business is $100,000. X (age 58), a philanthropist, also wants to support the local community that has made his business successful over the years. X expects to require $250,000 of income per year to support himself during retirement.

Conclusion CRUTs can be a great planning tool, but they are not without significant pitfalls. Proprietors should fund CRUTs with their business interests prior to negotiating the sale of their businesses. CRUTs are also susceptible to market fluctuations, which could substantially reduce the amount distributed to the donor in years where the CRUT investments perform poorly. Finally, due to the irrevocable nature of CRUTs, careful planning must be undertaken to ensure the CRUT will meet the donor’s needs.

If X were to sell his business outright, he would have a capital gain of $3.9 million in the year of the sale. This gain could easily generate a tax bill in excess of $1 million once federal and state income taxes are paid. X could substantially reduce his tax burden by contributing his interest in the business to a CRUT. If X created a CRUT with a 7-percent unitrust amount for his life, then the initial distribution to him would be approximately $280,000 ($4 million multiplied by 7 percent). X would only incur income taxes on the amount distributed to him ($280,000) in the year of sale, rather than the entire capital gain ($3.9 million). In addition, X would be entitled to a charitable deduction of $999,360 in the year of the CRUT’s creation. Based on X’s life expectancy, and assuming an 8-percent annual return on CRUT investments, X would receive total distributions of $7,094,645 from the CRUT over his lifetime. At the end of the CRUT term, $4,880,643 would be distributed to the charities of X’s

For more information, contact Nicholas Holland at MacDonald, Illig, Jones & Britton LLP at 814/870-7717 or nholland@mijb.com.

Nicholas J. Holland is an associate with MacDonald Illig. He is affiliated with the firm’s Business Transactions, Trusts & Estates and Tax practice areas. Holland concentrates his practice in the areas of estate planning, estate and trust administration, tax and business matters.

July 2015 > www.mbabizmag.com > 9


INTRODUCING LECOM HEALTH Millcreek Health System is now LECOM Health. We’ve brought together a full range of doctors, nurses,

specialists, caregivers, and certified health professionals under one name, to bring you a dynamic approach to health that serves every stage of your family’s life. Whatever the need, whether it’s the expert care of our community hospital, the specialized knowledge of our clinical practices, the new frontiers of health being explored in our medical school, the energizing environment of our wellness center or the attentive and compassionate caregiving of our senior living centers, LECOM Health is dedicated to bringing better health to everyone in your life. Welcome to a health system focused on you. Welcome to LECOM Health. Visit LECOMHEALTH.COM

Care. Compassion. Community.


OntheHill

DEPARTMENTS > Contact: Lori Joint

Are You a Model Constituent? Angela Zaydon is the state government relations representative for the Manufacturer & Business Association in Harrisburg. Contact her at 717/525-7213, cell 814/460-3136 or at azaydon@mbausa.org.

Grassroots advocacy is an essential and integral part of the legislative process. Oftentimes, individuals believe that their voice alone cannot make a difference. While it is true that there is power in numbers, it is also true that good relationships and expert advice make good constituents. You hold the power to develop relationships with your legislators and their staff. Federal and state legislators cast many votes on hundreds of bills each year. It is impossible for them to be “experts” on every major issue that comes to a vote. You, as a businessperson and their constituent, automatically are an authority and a resource for them. Federal and state legislators deal with the big picture, but you can help them understand how their vote will affect your business. If you do not become involved in the political decision-making process, you may not like the decisions being made without your input. All elected officials are concerned about the views and interests of all their constituents because their support equals votes during elections. If legislators ignore any voters, they won’t be in office for long. You may think that you are only one voice, but legislators understand that you represent the interests of the business and manufacturing community in their districts. It is easy to ask if our legislators are doing a good job. We make checklists and check voting records of important legislation. We read newspaper articles and watch the news to get updates on the issues that the legislators are working on. We are easily upset if our legislator votes in such a way that hurts our industry. But then we must ask ourselves: Did we inform them of our views? Did we give them the most up-to-date information that we have? Did we meet with them and discuss the issue? Did we invite them to our business for a tour so they could see the operations first hand? If the answer to these questions is “no,” then we have some work to do.

It is our job, the industry leaders and business owners, to advise our legislators on industry trends, needs, problems and solutions. We are the experts in our own field, and we can’t expect our legislators to be experts in all areas and issues that they must cast votes. We need to arm them with the necessary information, statistics, views and ideas so that they can go to Harrisburg ready to fight for their constituents. The only way they can do that is if we take the time to meet with them, provide information to them and their staff, build solid relationships and support their efforts. There are many ways to build a relationship with your legislators. First, visit their websites frequently, as they provide many updates from issues they are working on, important information on things happening in the district, to events that they are holding — from town hall meetings to fundraising events. Legislators hold events in their district to get to know their constituents. Attending one of their events is a great way to get to know them. If you don’t already have a relationship with your legislator, make an appointment to meet with them. Tell them about yourself and your business. Let them know that they can contact you when they have questions on business issues. Having you as a resource and knowing they can count on you for your expert opinion is important to them and helps them make informed decisions on issues that affect your business. You wouldn’t send your child to school without their pencils; don’t send your legislator to Harrisburg without your views. The Manufacturer & Business Association’s Government Affairs department also has tools available to help in grassroots advocacy from action alerts on important legislation, automatic letters to legislators, legislator contact information and effective messages on business issues. Visit www.MBA-ga.org.

July 2015 > www.mbabizmag.com > 11


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The grand opening of LORD Corporation’s Robison Road facility marks the company’s 90th year in Erie.

Loyalty to the Community LORD Corporation is actively involved in supporting STEM education.

Performance Assurance

On May 18, the LORD Erie facility on Robison Road officially opened with members of the Erie community and LORD team present to cut the ribbon. For LORD, working in partnership with the communities around its facilities is a top priority. This commitment serves as the solid foundation of an enduring and sustainable business that allows LORD to create lasting value for its customers, shareholders, employees and the communities in which it operates. LORD Corporation’s 90-year history of innovation began in Erie, and the new facility will continue the company’s legacy of creating highly reliable technologies that improve the safety, efficiency and effectiveness of products used around the world. “This new facility enables us to build on LORD Corporation’s proud legacy in Erie,” said Ed Auslander, president and CEO, LORD Corporation. “For nearly a century, highly reliable innovations developed here in Erie have proven instrumental in shaping industries, setting global safety standards and delivering value to customers around the world.”

Quality Begins Within

Providing these quality products and processes requires a focus on people. LORD actively promotes a safe work culture and operating environment to educate and advocate continuous improvement in culture and practices. LORD believes that wellness goes hand in hand with safety. LORD provides and promotes programs that educate, support, and encourage employees and their families to make healthy medical, emotional, nutritional and physical lifestyle choices. Healthier employees lead to higher job satisfaction and increased productivity and effectiveness while working to achieve a better, healthier LORD. This unwavering commitment to quality stems from founder, Hugh Lord, and continues today as one of the core values around which the company conducts business. LORD strives to meet and exceed customer expectations while empowering its people to lead productive and healthy lives.

President and CEO Ed Auslander (kneeling) says LORD is committed to “delivering value to customers around the world.”

LORD Team

Employees at LORD have a strong commitment to keeping a close-knit community inside and outside the facility walls, further supported by combining workforces into the Robison Road facility. Each year, the LORD team donates its time and money in the surrounding community. They believe in supporting needs throughout the community and especially value STEM education (Science, Technology, Engineering and Math). LORD has significant involvement in the local United Way and Junior Achievement chapters in an effort to support those initiatives. Aside from these corporate donations, individuals at LORD also donate to causes that are close to them. These projects range from The American Heart Association to Big Brothers, Big Sisters; and from expERIEnce Children’s Museum to The Fallen Soldiers Picnic. LORD and the northwest Pennsylvania community have a strong partnership and it will continue to strengthen throughout the years to come. “At LORD,” notes Auslander. “We work hard to lead by example.”

LORD Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance. For more than 90 years, LORD has worked in collaboration with its customers to provide innovative oil and gas, aerospace, defense, automotive and industrial solutions. With world headquarters in Cary, North Carolina and 2014 revenues in excess of $890 million, LORD has more than 3,100 employees in 26 countries and operates 17 manufacturing facilities and nine research and development centers worldwide, including its Erie and Cambridge Springs locations in northwest Pennsylvania. LORD actively promotes STEM education and many other community engagement initiatives. For more information, visit www.lord.com. July 2015 > www.mbabizmag.com > 13


The Northwest Regional Key, a project of the Northwest Institute of Research, manages the Keystone STARS system, which aims to improve, support and recognize the continuous quality improvement efforts of early learning programs in Pennsylvania. Quality early learning experiences help children succeed in school and later in the workplace.

Northwest Regional Key  3823 West 12th Street  Erie, Pennsylvania 16505  Toll Free: 800/860-2281  www.nwregionalkey.org

14 < www.mbabizmag.com < July 2015


Agency PROFILE SafeNet 1702 French Street Erie, PA 16501 Phone: 814/455-1774 Website: www.safeneterie.org

SafeNet & Crime Victim Center

In the ‘50s, it was cool to smoke and drink. The TV show “Mad Men” portrayed an era in which everyone lit up before, during and after their three-martini lunch. Times have changed.

Crime Victim Center 125 West 18th Street Erie, PA 16501 Phone: 814/455-9414 Website: www.cvcerie.org

Now we know of the dangers of smoking and, because of changing public opinion and tougher laws, the three-martini lunch is a thing of the past. This behavior is no longer acceptable as our social norms have changed.

N MORE “WELL, SHE WAS DRUNK”

Domestic violence and sexual assault are never the victim’s fault. It’s time we all speak out to stop the violence. No more excuses. No more silence. No more violence.

www.nomore.org © 2013 Joyful Heart Foundation. All rights reserved. All content and trademarks used under license (or with permission).

NO MORE in Erie

Amy Poehler

N MORE “IT’S JUST THE WAY PEOPLE ARE”

There is never an excuse for domestic violence or sexual assault. It’s time we all speak out to stop the violence. No more excuses. No more silence. No more violence.

The same thing is starting to occur with regard to domestic violence and sexual assault. You may have seen the NFL TV commercials using the phrase NO MORE in which football players are saying NO MORE to domestic violence. The NFL has been open about working to change their internal social norms. But why the phrase NO MORE? NO MORE, in all capital letters, is a symbol designed to give awareness and promote action to end domestic violence and sexual assault. The “O” in NO is a blue circle to represent a zero, as in a goal of zero instances of domestic violence and sexual assault. The NO MORE symbol was developed because these problems affecting millions remain hidden and on the margins of public concern. NO MORE calls us to end the silence and speak out against the violence experienced by people of all genders, races, ethnicities and ages. What does all this mean to you? The NO MORE website has some interesting statistics to consider the next time you’re in a room with six people: • 1 in 3 women and 1 in 4 men experience violence from their partners in their lifetimes. • 1 in 3 teens experience sexual or physical abuse or threats from a boyfriend or girlfriend in one year. • 1 in 5 women are survivors of rape.

www.nomore.org © 2013 Joyful Heart Foundation. All rights reserved. All content and trademarks used under license (or with permission).

Blair Underwood

• 1 in 2 women and 1 in 5 men have experienced some form of sexual

victimization in their lives. • 1 in 4 women and 1 in 6 men were sexually abused before the age of 18. These are real people. You may work with one or live next door to one. One may be in your family or go to your church. And these aren’t just national statistics. These statistics also are representative of Erie, Pennsylvania. It’s time to change the social norms with regard to domestic violence and sexual assault. But how? Here are some ideas: When you hear a disrespectful comment, say something. Your remaining silent implies your agreement. When you see someone being mistreated, stand up for them. If you do nothing, the behavior will likely continue. This is how we begin to change this social norm. It’s time to say NO MORE. Get Involved If you’d like to follow the NFL’s lead, spread the word about NO MORE. Talk about these issues. Break the silence. Speak out. If you’d like to become more involved, contact SafeNet or Crime Victim Center (CVC) about volunteering and donating opportunities. SafeNet, established in 1974 as Hospitality House, is committed to ending domestic violence and delivering comprehensive services including support, education, advocacy, legal services, emergency shelter and transitional housing. Established in 1973 as the Erie County Rape Crisis Center, CVC seeks to reduce the impact of crime through counseling, education, and advocacy. Both organizations offer confidential services which are free of charge. To learn more about domestic violence, contact SafeNet, Erie’s only accredited domestic violence agency. Visit the agency’s website at www.safeneterie.org or call SafeNet at 814/455-1774. To learn more about sexual assault, visit the Crime Victim Center’s website at www.cvcerie.org or call 814/455-9414.

July 2015 > www.mbabizmag.com > 15


sales maker People buy more from people they know.

Advertise your company’s products, services, skills, resources, capabilities and competitive pricing to more than 15,000 decision makers who read the Business Magazine every month! Contact Patty Welther today at 800/815-2660, 814/833-3200 or pwelther@mbausa.org.

A GREAT DAY to help nonprofit! August 11, 2015 8 a.m. to 8 p.m.

Erie Gives — The one day when your donation makes an impact. Last year, donors gave over $2.2 million to 300 nonprofits during Erie Gives. On August 11, visit www.ErieGives.org and donate $25 or more to your favorite nonprofit(s) and a prorated match will be added to your donation. This year, GE Transportation, Erie Insurance, Presque Isle Downs & Casino, Eriez Magnetics, The Erie Community Foundation and an anonymous donor increased the prorated match pool to $220,000! You too can make a difference!

16 < www.mbabizmag.com < July 2015


The Sight Center of Northwest PA

Company PROFILE The Sight Center of Northwest PA 2545 West 26th Street Erie, PA 16506 Phone: 814/455-0995 Website: www.sightcenternwpa.org Chief Executive Officer: Linda Hackshaw lindah@sightcenternwpa.org Director of Business and Development: Dan Zimmer danz@sightcenternwpa.org Serving: Erie, Warren, McKean, Jefferson, Cameron, Elk and Potter counties

From age 1 to 100, the Sight Center serves people with all types of vision loss.

For 77 years, the Sight Center – originally Erie Center for the Blind – has been our community’s primary resource for prevention of blindness and services for people who are visually impaired. Currently serving seven counties in Pennsylvania, the Center’s mission is a noble one: to prevent blindness and promote independence in those with vision loss. With the support of the State of Pennsylvania, United Way of Erie County, Lions Clubs and many members of this community, the Center is able to help those with vision loss to preserve their dignity and experience days filled with bright possibilities. As the region’s only full-service vision rehabilitation facility, the Center’s comprehensive services include: vision screening for children, eye glasses for the uninsured, transportation for those who cannot see to drive to necessary appointments, personal reading, banking and bill-paying, life skills education, low vision evaluations, occupational therapy and programming for blind children.

• Makes, fits and dispenses nearly 400 pairs of low-cost eyeglasses each year to those without insurance • Provides free eyeglasses and physician vouchers for children whose parents cannot afford the cost of vision care through the Erie Lions Club Save An Eye Fund • Provides more than 4,000 escorted rides to doctors, dentists, lawyers, grocery stores and other necessary appointments for people who cannot see to drive and cannot navigate safely alone, enabling many to remain at home and “age in place” with vision loss • Provides about 450 low vision evaluations for those with declining vision due to diabetes, age-related macular degeneration, glaucoma and other related conditions • Offers comprehensive occupational therapy to those losing their vision to re-learn activities of daily living and safely maintain their independence • Hosts the region’s only “Sports Camp” for children with visual disabilities to learn and participate in a variety of team and individual sports activities The Sight Center’s new building on West 26th Street, just off Interstate 79, is easily accessible by car or bus.

The Sight Center: • Screens more than 7,000 children annually in its seven-county region • 8 percent of those children are referred for professional evaluation and care • 92 percent of the children the Center refers receive confirmation of its suspected visual issues

A Trusted Member of Our Community... for Over 50 Years Outpatient Care • Psychiatric Rehabilitation

Substance Abuse • Residential Treatment Case Management • Employee Assistance Program Job Placement • Art and Wellness

www.StairwaysBH.org 2185 W. 8th St. in Erie • 888-453-5806 847 N. Main St. Ste. 110 in Meadville • 814-337-8762 mba ad 2015.indd 1

6/8/2015 3:27:33 PM > 17 July 2015 > www.mbabizmag.com


HR Connection EXPERTS: WORKPLACE GIVING IS CHANGING Workplace charitable giving programs generate an impressive $4 billion annually and are a source of much-needed financial support for charities. They are also a convenient way for employees to make charitable gifts and they serve as a public demonstration of a company’s commitment to social issues. Over the past few years, the profile of workplace giving programs has changed. Employees, particularly the millennial generation, are looking for additional ways to support and engage with nonprofit organizations through the workplace. Today’s digital culture makes such opportunities possible for forwardlooking and tech-savvy companies and charities. In fact, in the Snapshot 2014: Rising Tide of Expectations Corporate Giving, Employee Engagement and Impact, America’s Charities, Inc. found that 50 percent of charities said requests from employers seeking to offer their employees

volunteer opportunities have increased. One clear trend is that donors on all levels (individual, corporate, and institutional) want more information. Nonprofits are getting the message that they need to be transparent and to demonstrate the impact the organization is making. According to the survey:

activities, as they must do if they hope to attract and retain top talent.

• 94 percent are making information available sooner than ever before via digital media.

A recent study by America’s Charities revealed that 68 percent of employers report that their employees expect them to support volunteerism and 50 percent of employers are moving to year-round engagement with their workplace giving programs. Eighty percent of surveyed companies offer employees the ability to contribute to nonprofits via automatic payroll deductions, 70 percent offer matching gifts as a component of their volunteering and giving program, and 60 percent are incorporating contests and events as a way to add fun to workplace giving programs and keep them vibrant.

NOT JUST LIP SERVICE: EMPLOYEES SEEK WORKPLACE VOLUNTEERING Across the world, employee expectations of the companies they work for are dramatically expanding when it comes to corporate philanthropy. As such, companies are being forced to respond to this groundswell of interest in charitable

In addition, a recent report, conducted by the ESMT European School of Management and Technology, found that environmental initiatives, charitable giving and ethical business practices help employees identify more strongly with their companies and serve as ice breakers and points of conversation for employee and customer dialogue.

• 90 percent are using social media to communicate with stakeholders; • 90 percent are now creating narratives that emphasize outcomes and results; and,

Denise Thomas, Owner of Countryside Agility: “ I have always believed that good business starts with good relationships and trust. Erie FCU was eager to establish a personal relationship with me and my business from the get-go.” Denise Thomas

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www.eriefcu.org 5/5/15 2:57 PM

Fin that fi


DEPARTMENTS > Contact: Stacey Bruce

ACA Timeline: What Employers Should Know The coming years will be pivotal for the Affordable Care Act (ACA), so here’s a look at some upcoming dates that will bring about key changes in the health-care market: July 2015: Small business reimbursement prohibition penalties/enforcement begins. There is a prohibition from reimbursing employees for individual health insurance. Here are the facts: 1. 18 percent of all businesses reimburse for individual health insurance. 2. 14 percent of non-offering businesses reimburse for individual health insurance. 3. Stand-Alone Health Reimbursement Accounts (HRAs) are prohibited except for retirees. 4. The Internal Revenue Service (IRS) ruled that the reimbursement violates the annual and lifetime caps on benefits. 5. Penalties: $100 per employee per day ($36,500 per employee per year) 6. Prohibition was scheduled to begin January 1, 2014; however, it was

postponed until July 2015. 7. Exception: Reimbursing retirees or reimbursement occurs for only one employee. 8. Payment of employee costs on an after-tax basis is permitted. 9. Cash offers to employees with high claims risk is prohibited and violates the HIPAA nondiscrimination rules. November 1, 2015: Open enrollment for 2016 calendar year begins. January 1, 2016: Employer mandate coverage requirement fully implemented (50-plus full-time employees); must offer to 95 percent of employees and dependents. Small group market/SHOP exchanges expand to mid-size businesses (50-99 full-time employees). January 31, 2016: Open enrollment for 2016 calendar year ends. 2017: Small Business (SHOP) exchange marketplaces may open for large businesses. Federal Medicaid contribution declines from 100 percent to 95 percent. 2018: Cadillac Tax on high-value plans begins. Here are the facts:

1. Little guidance yet 2. 40 percent non-deductible excise tax 3. Triggered is aggregate cost of employer-sponsored coverage for employee that exceeds the annual limitation (in 2018, it is $10,200 for single; $27,500, other than single). 4. Subject to adjustments in 2019 and thereafter. 5. Applies to insured and self-insured plans, health flexible spending accounts, medical saving accounts, health reimbursement accounts and probably health savings accounts.

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

COMMUNITY SUPPORT Knox McLaughlin Gornall & Sennett, P.C. strives to make the community a better place to live by supporting many civic and charitable organizations through personal involvement and financial contributions. This commitment is firm-wide and ranges from coaching little league to leading nonprofit boards. The Knox firm applauds community organizations. The legacy of our region will live on for generations to come due to their passion, traditions and service.

Bankruptcy & Creditors’ Rights • Business & Tax • Elder Law • Environmental Law Estate Planning & Administration • Family Law • Governmental Practice Health Law • Intellectual Property & Technology • Labor & Employment

Knox McLaughlin Gornall & Sennett, P.C.

Litigation • Public Finance & Bonds • Real Estate • Workers’ Compensation

Erie, PA | Jamestown, NY | North East, PA 814-459-2800 | www.kmgslaw.com

July 2015 > www.mbabizmag.com > 19


HR Q&A DO I HAVE TO PAY AN INTERN? It depends. An intern isn’t free labor, even if the intern is learning while he or she is working. Basically, the issue is whether the person is an “employee” under the Fair Labor Standards Act. There is actually a six-factor test you can use to determine if an intern must be paid. This is the Department of Labor test that determines if a worker can be classified as “trainee.” For an intern to be unpaid, all of the following factors must be present: 1. The training is similar to training the student would find in a vocational school;

And, perhaps, the biggest issue of all: 6. The employer that provides the training not only doesn’t benefit from it, but, in fact, the training may actually hamper normal business functions. As an example of this last factor, if you have an intern who is answering calls, filling out forms, and providing actual work for you, you are benefiting from the intern’s work, even though the intern may be learning the business at the same time. In this situation, the intern must be paid as an employee.

4. The intern is not entitled to a job at the end of the internship;

If, on the other hand, you are taking time out of your regular operations to sit and train this person on various aspects of your business, the presence of the intern is actually keeping you from doing your job, and is not benefiting you in any way. In this second example, the intern may be unpaid — he or she is not actually an employee who provides work for your organization.

5. The intern understands he or she is not entitled to wages for the training;

If you are contemplating hiring an intern, be sure you understand the factors

2. The training is for the benefit of the student/intern; 3. The training doesn’t replace the work of regular employees;

involved in determining whether he or she must be paid. DO I HAVE TO PAY AN EMPLOYEE WHILE SERVING ON JURY DUTY? In the absence of a policy, non-exempt employees may take jury leave without pay. Exempt employees cannot be subject to a salary deduction for weeks that include jury duty absences, but full-week absences for jury duty could be unpaid if the employee did not otherwise work that week. Note: Be sure to check with the state law in which you do business. Companies often limit the time they will pay an employee while on duty jury (for example, a one week maximum). Employers also may have the right to ask that workers be excused from jury duty obligations if that employee’s absence would substantially interfere with the efficient operation of the company. The likely response varies with the jurisdiction.

Our Services Knock It out of the park!

Janitorial Services “We Don’t Cut Corners, We Clean Them!” www.btjanitorialservices.com | 1-814-368-7199 or 1-800-249-5656

20 < www.mbabizmag.com < July 2015


DEPARTMENTS > Contact: Stacey Bruce

Volunteer or Paid Employee: What’s the Difference? A question that often comes up, and has been addressed in many Opinion Letters by the federal Wage & Hour Division, is whether employees can “volunteer” to perform work for their employer without compensation. In almost every case, the answer is no. While the law does recognize that individuals may choose to volunteer their time for civic or charitable organizations, the Wage & Hour Division (and the Supreme Court) have expressed concern over allowing an employee (even an employee of a nonprofit organization) to perform work without compensation. Specifically, the agency is concerned that an employee might be required to “volunteer” additional time without pay, which would violate the intent of the Fair Labor Standards Act. One of the best summaries of this concern appeared in an Opinion Letter (FLSA 2001-18), which responded to a question about nurses volunteering their time for various community services. The response from the Division included the following:

“It has been determined, however, that employees subject to the Act may not choose to ‘decline’ the protections of the Act by performing activities for their employer that the employer and employees have characterized as ‘volunteer’ services.” (Tony and Susan Alamo Foundation, supra, at 302). In that case, the Supreme Court was concerned that unless employees were barred on a general basis from ‘volunteering’ to perform any services for their employers there would be potential for the coercion of uncompensated services, to the detriment of the purposes of the Act. The Court did not wish to allow the prohibition against employees waiving their protections under the Act to be circumvented by characterizing work as ‘volunteer’ services, citing Barrentine v. Arkansas-Best Freight System, Inc., 450 U.S. 728 (1981) and Brooklyn Savings Bank v. O’Neil, 324 U.S. 697 (1945). Accordingly, where employees of a nonprofit organization perform ‘volunteer’ work of the same type that constitutes their normal work activity, we

have uniformly taken the position that the ‘volunteer’ work is compensable. This concern extends to both nonprofit and for-profit employers.” In many cases, an employee cannot “volunteer” unpaid time to his or her employer. Volunteer activities are allowed if an individual is performing services for an organization and is not also an employee of that organization. However, once an employer/employee relationship exists, individuals cannot volunteer additional unpaid time for their employer unless a number of conditions are met. For more information, contact me at 814/8333200, 800/815-2660 or sbruce@mbausa.org. Stacey Bruce is the director of HR Services at the Manufacturer & Business Association.

Manufacturers have Cyber Exposures Liability for Loss of CONFIDENTIAL Customer Information… you may be liable for damages incurred by your customers for the loss of drawings, specifications, unique formulas or recipes from your systems. You may also be liable for damages to your customers if access into their network is due to a link through your network or if your system transmits a virus to a third party’s system and their data is destroyed. Are you the weakest IT security link in the supply chain? Cyber Liability Insurance may provide you protection from these types of losses.

Lost Income and Operating Expense from a Security or Data Breach… the Sony hackers didn’t simply steal data, they erased it and rendered the entire computer system unusable. Hackers have been known to attack industrial control systems and cause breakdowns of machinery! What if you are compromised via a vendor’s computer system? If your operations or manufacturing processes are dependent on a network, the lost income and the extra expenses needed to recover lost production due to a network cyberattack or cyber extortion scheme can be significant. Again, cyber insurance may provide you a remedy for the financial impact of such losses.

Corporate Data, Personnel Data, and Privacy Notifications… you can’t just apologize for an event. You need to respond and there are 47 state laws with which you may need to comply. Cyber insurance will help you with the cost to comply with regulatory notifications and remedies. Cyber insurance breach response and notification coverage (with the technical help of a Breach Coach provided by the insurer) may help keep you out of litigation. Regulatory coverage may be available for state, federal, foreign and privacy related regulations. It’s an evolving and complex issue that at a minimum is worthy of a discussion…why not give us a call or drop us a line.

“The Bloomstines”

Commercial, Industrial & Institutional Property, Liability & Workers’ Compensation Insurance Agents

Lloyd’s London Correspondents and Correspondent Brokers Worldwide

123 West 9th Street Erie, PA 16501 814-452-3200 Fax 814-454-5598 www.imcerie.com e-mail: john.bloomstine@imcerie.com July 2015 > www.mbabizmag.com > 21


Events

A sold-out crowd enjoyed the Manufacturer & Business Association’s 110th Annual Event featuring “A Conversation with T. Boone Pickens,” moderated by John Hofmeister, founder of Citizens for Affordable Energy, on May 20 at the Erie Insurance Arena. For extensive photo coverage of the event, visit the Photo Gallery on www.mbausa.org.

Lawrence T. Persico, bishop of Erie, leads the invocation.

The Erie Insurance Arena was electrifying for this year’s Annual Event.

Association Chairman Bill Hilbert Jr. and his wife, Rebecca, welcome keynote speaker T. Boone Pickens to Erie. Hilbert is president of Reddog Industries, one of the sponsors of the Annual Event.

Pittsburgh Steelers legend Louis Lipps waves to the crowd.

The highlight of the night was a conversation with moderator John Hofmeister and the “Oracle of Oil” T. Boone Pickens.

Trumpeter James Singer performed a rousing rendition of the National Anthem as guests sang along.

22 < www.mbabizmag.com < July 2015

The Association thanked representatives from major sponsors (from left) UPMC Health Plan and PNC and event sponsors PHB/Reddog Industries, McInnes Rolled Rings, Logistics Plus and FMC Technologies.


The Association’s Immediate Past Chairman Tim Hunter is joined by his wife Gretchen. Hunter is the president and CEO of McInnes Rolled Rings, a sponsor of the event.

The Association introduced the 2015-2016 Board of Governors.

Guests received a complimentary edition of the Business Magazine’s signature Annual Report.

Association Vice President John Krahe (right) presented Lifetime Achievement recognitions to Maurita Mead, widow of Ed Mead, and William Giermak, son of Chet Giermak, in memory of the two late business leaders.

The crowd gave a standing ovation following the tribute to Ed Mead and Chet Giermak. Mead was chairman emeritus at the Times Publishing Company, and Giermak was the former president and CEO of Eriez Magnetics.

The Association’s 2015-2016 Executive Committee.

Fred Rizzuto (left), represented sponsor Logistics Plus, at the event.

Guests were greeted by sponsor displays as they entered the arena.

Charles “Boo” Hagerty (center), of major sponsor UPMC Health Plan, mingles at the member reception. July 2015 > www.mbabizmag.com > 23


People Buzz ERIE COMMUNITY FOUNDATION WELCOMES NEW BOARD TRUSTEES The Erie Community Foundation announced the addition of two new trustees who will each serve three-year terms on its board: Donald L. Baxter, Jr., M.D. a practicing physician at Dermatology Associates of Erie and a vicar at St. Mark’s Episcopal Church, and Ronald Allen Steele, the chief executive officer of the Greater Erie Community Action Committee. Baxter earned a bachelor of arts in English literature from Pennsylvania State University and his medical degree from Hahnemann Medical School in Philadelphia. He completed his internship and residency at Bethesda Naval Hospital. He served in the United States Navy as Lieutenant Commander, Medical Corps,

from 1979 to 1992, when he was honorably discharged. In 2002, Baxter graduated from Episcopal Diocese of Northwestern Pennsylvania School for Ministry. Steele graduated from the University of Pittsburgh with a bachelor of arts in sociology. He serves on the Edinboro University of Pennsylvania Council of Trustees, UPMC Hamot Board of Corporators, Mercyhurst University President’s Association and Governor’s Commission on African American Affairs, among others. ERIEZ® ANNOUNCES TWO PROMOTIONS Eriez® recently announced two promotions, including Mike Mankosa to executive vice president-Global Technology and Tim Gland to director-Erie Operations.

Mankosa was previously Eriez’ vice president of Operations, a role he held since 2004. In his new position, Mankosa will focus his efforts on leveraging Eriez’ technology to advance both domestic and international operations while exploring global opportunities for product and market innovation. He will oversee the technology interests of all Eriez products as well as future technology acquisitions. As executive vice president-Global Technology, Mankosa’s responsibilities will include guiding Eriez’ product technology focus, leading the collaboration of Eriez’ technical expertise across global enterprises and directing the development of technology solutions to enhance Eriez’ strategic goals worldwide. Gland joined Eriez a year ago as facilities

Continuously accredited since 1996, we comply with the highest national standards for safety and quality of care. Supporting careers in mental health for over 40 years. www.sarahreed.org

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24 < www.mbabizmag.com < July 2015


DEPARTMENTS > Contact: Karen Torres

director. In his new position as Eriez’ directorErie Operations, he will be responsible for all manufacturing operations at the company’s Erie headquarters and Asbury Road plants. His duties will include overseeing the facilities’ production control, purchasing, subcontract, shipping and stores operations. Additionally, the quality assurance department will report to him. THREE MACDONALD ILLIG PARTNERS NAMED 2015 PENNSYLVANIA SUPER LAWYERS MacDonald, Illig, Jones & Britton LLP recently announced that partners Roger H. Taft, W. Patrick Delaney and Craig Murphey have been selected as 2015 Pennsylvania Super Lawyers. Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree

of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations and peer evaluations. Taft is a principal trial lawyer at MacDonald Illig and serves as co-chair of the firm’s Labor & Employment practice group. He concentrates his practice on employment litigation, including employment discrimination and wrongful discharge cases, and complex commercial litigation. Delaney is a trial attorney and chair of the firm’s Litigation Department. He has experience litigating a wide variety of matters, from share-

holder disputes to personal injury. In general, the focus of his practice is commercial litigation. Murphey is chair of MacDonald Illig’s Insurance practice group. He is a trial lawyer, regularly handling a wide variety of civil cases. He has particular experience in the areas of insurance coverage, bad faith insurance litigation and commercial disputes. SHARE YOUR GOOD NEWS! If your company is an MBA member, send your People Buzz news about promotions, new hires or recognitions to Karen Torres at ktorres@mbausa.org. All items are published on an as-spacepermits basis.

Animal Sponsorship

Corporate Volunteer Opportunities

Company Picnics

Employee Membership Program

The expERIEnce Children’s Museum is celebrating 20 years of inspiring families to create, explore, imagine and PLAY together. Join us!

expERIEence Children’s Museum 420 French Street Erie, PA (814) 453-3743 Next to the Pufferbelly Restaurant

eriechildrensmuseum.org

Whether you’re a sponsor, a donor, a volunteer or a member, the Zoo is a part of our community and our lives. To learn more about specific opportunities, contact us at 814 864-4091 or KMiller@eriezoo.org.

July 2015 > www.mbabizmag.com > 25


PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

We’re not happy until our members are.

At UPMC Health Plan, we don’t strive for customer satisfaction, we strive for customer elation. In fact, we treat every member like a member of the family. It’s why our Health Care Concierges go above and beyond to resolve any issue in just one call. And why we continue to be recognized as a leader in customer service by so many.

UPMC Health Plan’s Contact Center has been recognized by J.D. Power for providing “An Outstanding Customer Service Experience” for the Live Phone Channel. The Stevie® Awards—the world’s Premier business awards—recognize contact centers, customer service, business development and sales professionals worldwide. The ICMI Global Contact Center Awards Program is the most comprehensive awards program dedicated to the customer management industry. For J.D. Power 2014 Contact Center Certification ProgramSM information, visit www.jdpower.com/ccc.

UPMCHealthPlan.com


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