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Blue Ocean Strategy Center

105th Annual Event Presents

The Honorable

Richard B. Cheney • 46th Vice President of the United States • Secretary of Defense • Congressman, House Leadership • White House Chief of Staff • Chairman and CEO of Halliburton For over 40 years, Dick Cheney has served at the highest levels of the U.S. government and private sector. He has participated in many of the events that have shaped our nation for over four decades. Few Americans alive today can match the breadth and depth of his experience and service. As a statesman, policymaker, businessman, and politician – who never lost an election in which his name was on the ballot – Cheney’s insight, experience and knowledge are unparalleled. Reservations: Call Tracy Shepard at 814/833-3200 or 800/815-2660.


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


MARCH 2010

Controlling Your Energy Costs How the Employers’ Energy Alliance of Pennsylvania, Inc. is Providing Low-Cost Solutions as Rate Caps Come Off

Page 12

PLUS: t The MosEOs C Admired10! of 20

Do You Know the Right Moves?

Managing your business and personal matters is like playing a game of chess. You need to make the right moves at the right times. And, an experienced firm can guide you to not only play the game well, but to win. At Schaffner, Knight, Minnaugh & Company, P.C., that’s what we do. We do our homework on your industry. We find out what you really need to know, and what moves you need to make. We go beyond what MUST be done ... to what CAN be done. And, we have a passion to be 100% right for you every time. When you want one-on-one attention to your business or personal matters, we are large enough to specialize, and small enough to personalize. If you are ready for individualized attention, give us a call.

Schaffner, Knight, Minnaugh & Company, P.C. ... World Class service for World Class clients. Certified Public Accountants

Erie Offices 1001 State Street, Suite 1300 Erie, Pennsylvania 16501 814-454-1997

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March 2010

Blue Ocean Strategy Center

EDITORIAL > 5 / Health Matters How an “intelligent” formulary design philosophy can help employers keep costs down. CHRONIS MANOLIS, R.Ph.

7 / Legal Brief

Policing and protecting registered trademarks over the Internet. CATHERINE MOODEY DOYLE

11 / Financial Adviser

3 / Spotlight

Brett Messina, director of Sales & Marketing for Erie, Pennsylvania-based NUVO Surgical, talks about this hightech manufacturer and seller of surgical equipment and the opportunities and challenges facing the medical manufacturing industry.

12 / Employers’ Energy Alliance of Pennsylvania, Inc.


President J. David Bell discusses the surge in energy suppliers and how the EEA-PA is providing low-cost solutions for employers of every size.

15 / Wellness News

19 / On the Hill

Retirement and exit planning strategies in a down economy.

“BlackBerry thumb” – Are you at risk? TERRI WOLFE, OTR/L, CHT

27 / Tech Update




Anna McCauslin of the Association’s Government Affairs Department explains why 2012 could be such a trying year for Pennsylvanians.

Five questions HR should be asking IT to ensure that your organization’s HR function is at peak productivity. KEN POLK


24 / Most Admired CEOs

See who our readers selected as their Most Admired CEOs of 2010 and why in this special two-page recognition section.

DEPARTMENTS > 4 / Business Buzz 16 / HR Connection

The Most Os E C d e r i Adm of 2010! 19 / On the Hill 20 / Legal Q&A 28 / People Buzz

Lee Krull, business manager of the Clarion Students’ Association at Clarion University of Pennsylvania, relaxes with the Business Magazine in Puerto Vallarta, Mexico. Now you too can be a Business Magazine star. Take a copy with you and take a picture, and e-mail it to Lori Joint at


March 2010 > > 1

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SPOTLIGHT > by Karen Torres Brett Messina is the director of Sales & Marketing for Erie, Pennsylvania-based NUVO Surgical, which specializes in designing, engineering and manufacturing state-of-the-art surgical lights, flat-screen video monitors and additional operating room equipment that is currently found in more than 1,000 operating rooms in the United States. The Business Magazine recently asked Messina to talk about this high-tech manufacturer and seller of surgical equipment, headquartered at 5368 Kuhl Road, and the opportunities and challenges facing the medical manufacturing industry.

NUVO Surgical was founded in 1997 specifically to focus on the development and production of cutting-edge operating room equipment. Please tell us how the company got its start. Former AMSCO employees living in Erie entered into a contract with Hill Rom to develop operating room equipment. After three years, Hill Rom elected to exit the market and NUVO re-acquired the designs and intellectual property. Describe some of your products and latest innovations. The VERDE LED operating room light is state of the art. It provides excellent OR lighting and an Endo Mode feature that enhances video images for endoscopic surgery by flooding the OR with green back lighting. NUVO’s surgical equipment can be found in operating rooms all across the country, but its headquarters remain in northwest Pennsylvania. Why did you decide to maintain operations in this region? The supplier base in the area can quickly provide a range of hardware and components for making the OR equipment. The employees, both professional and hourly, are easily trained on medical devices. The owners were from Erie and decided to stay in the area. The primary difficulty living in Erie is traveling, as there are no direct flights. What is the size of your business, as it relates to employment, sales and output? NUVO is a member of the Medical Illumination Group in San Fernando, California and together we employ more than 130 people in the facilities. We have well over 200 sales reps and dealers worldwide, and we are the largest volume producer of medical grade lighting among our competitors.

VOL. X XIV, NO. 3 MARCH 2010 Manufacturer & Business Association Board of Governors

John Cline Dale Deist Timothy Hunter Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo Executive Editor John Krahe Managing Editor & Karen Torres Senior Writer Contributing Jessica Crocker Writers Catherine Moodey Doyle Chronis Manolis Kevin Oviatt Ken Polk Terri Wolfe Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 Design, Production Printing Concepts Inc. & Printing

In the medical industry that you serve, how big of a player is NUVO Surgical? NUVO is small player and focuses on the smaller regional hospitals with limited budgets. We are able to supply them with state-of-the-art technology at a lower price because of our smaller fixed base. What are the opportunities and challenges of being a medical manufacturer today? Today more of the opportunities are international because of the demand for American-designed products. The challenge of a medical device manufacturer is the growing bureaucratic and regulatory agencies that add no value to the products, but just add cost to the end user. How important is continuous improvement to your operations? Quality is key to our products. The user network can support you or destroy you based on your products’ quality reputation. Continuous improvement is always emphasized through the evolution of a product to assure that it just gets better, just as we do with employees and equipment. What’s your vision for NUVO Surgical in the short and long term? In the short term, we will continue to focus on our niche markets and execute our long-term plans to expand internationally and build medical equipment in the country targeted for the sale. For more information about NUVO Surgical, visit

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 © Copyright 2010 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.

March 2010 > > 3

Business Buzz STEWARD EARTH LAUNCHES REDESIGNED WEB SITE The McKean Township-based consulting firm Steward Earth, LLC recently launched a redesigned Web site,, which more clearly defines the concept of business sustainability for small and medium-sized enterprises (SMEs). According to Steward Earth’s Founder and Principal Sustainability Consultant, Scott J. Tait, “the new Web site will assist SMEs in understanding just what is sustainability and where they fit into the scheme of a sustainable landscape. This important understanding will help them succeed now and in the future.” EDCEC ANNOUNCES 2009 EMPLOYER, ENTREPRENEUR OF THE YEAR AWARDS The Economic Development Corporation of Erie County (EDCEC) recently announced the recipients for 2009 Employer of the Year and 2009 Entrepreneur of the Year at its annual awards dinner.

4 < < March 2010

DEPARTMENTS > Contact: Jessica Crocker

WHERE IS YOUR FAVORITE PLACE TO GOLF IN THE TRI-STATE REGION? The Business Magazine will be featuring our annual Golf Showcase in April 2010 and we want to know which courses are our readers’ favorites and why. Just click on the “Please send us your feedback” on www. and tell us the best places to golf in the tri-state region. We’ll publish the top picks in our next issue!

Association members take a break with the Business Magazine at Whispering Woods in Erie.

AccuSpec Electronics was named Employer of the Year. Given to an Eriebased company that exhibits a sincere and deep commitment to the Erie region and its employees, the award recognizes AccuSpec’s investment in the community during 2009.

and rewards the achievements of a newly established business and celebrates the impact that entrepreneurship has on the greater Erie community.

The Entrepreneur of the Year award, a new category in 2009, was presented to Bay City Orthocare. The honor recognizes

For a complete list of nominees, visit

Nominees for the awards were submitted by the community and voted on by the EDCEC.

Health Matters

EDITORIAL > by Chronis Manolis R.Ph.

Formulary Management: Designed for Your Benefit A health plan that employs an “intelligent” formulary design philosophy can be very effective at maintaining cost control for any employer. Ideally, a drug formulary should be a way to provide quality for patients through access to medications that maximize value relative to costs. High quality that is also affordable is the goal of intelligent formulary design. The challenge for any insurer in an environment of ever-escalating health-care costs is to use evidencebased medicine to create a highquality pharmacy formulary that is also affordable. When the formulary is multi-tiered, with selective noncovered categories, it offers members incentives to use generic drugs when available and “preferred” brand drugs when generics are not available within a therapeutic category. How Are Decisions Made? A panel of experts called the Pharmacy & Therapeutic Committee (P&T) review new and existing medications based on safety and clinical effectiveness can make decisions as to which drugs will be on the formulary. A drug formulary panel should include: • Physicians • Pharmacists • Experts in the field Once clinical effectiveness is established, the committee then selects the most cost-effective drugs in each therapeutic class. A therapeutic class is a group of medications that treat specific health conditions or work in a certain way, such as beta blockers used for the treatment of various cardiovascular conditions. What Should be the Goal of a Drug Formulary? The goal of any drug formulary should

be to strike a balance between access to the highest quality medications and affordability. An efficient formulary must offer incentives for members to use generic drugs when available and “preferred” brand drugs when generics are not available within a therapeutic category. Lower co-payments for generic drugs save money without sacrificing care or quality. Failing to create options such as lowcost generics could have serious consequences. And, without cost controls, pharmacy as a managed care benefit could disappear. A formulary should have the capacity to exclude certain drugs when there are proven cost-effective alternatives. It must resist the temptation to employ a “jump-on-the-bandwagon” mentality with new drugs. Aggressive consumer advertising sometimes encourages that mentality. Instead, evidence must be carefully reviewed before any drug is placed on the formulary. What About Adverse Reaction to Decisions? When you employ an “intelligent” formulary design philosophy, making difficult choices is a part of the process. Drug formularies need to take advantage of effective alternatives to expensive drugs to steer members away from medications that may not be medically necessary. When you direct members away from “me-too” medications – medications that tend to be new, expensive, and virtually the same in clinical quality as an established drug – then initially this can be perceived as a barrier. However, the reality is that this will eliminate waste, which, in turn, helps a health plan be a good steward of the limited resources available.

Examples of How Intelligent Formulary Design Can Save Money 1. Sleep aids: Drugs designed to help people sleep have become big business. With major advertising aimed at consumers and billions of dollars in sales, many patients demand the latest cure for sleeplessness. By keeping expensive new sleep drugs off the formulary and by directing members to effective alternatives and generics, you can limit access to the new drugs and, consequently, hold down costs without sacrificing care quality. 2. Branded narcotics: In many cases, they offer little or no therapeutic value over commercially available generic alternatives, while also presenting a high potential for abuse. But because there are good cost-efficient alternatives available, you can keep high-cost branded narcotics off the formulary and save members money in reduced co-payments while potentially decreasing the risk of abuse. For more information about formulary management, visit Chronis Manolis, R.Ph., is vice president, Pharmacy, for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and E-Benefits – and which offer a full range of insurance programs and products. March 2010 > > 5

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Legal Brief

EDITORIAL > by Catherine Moodey Doyle

Policing and Protecting Registered Trademarks Over the Internet Policing the use of trademarks by others in cyberspace is a difficult, but necessary, task. The Lanham Act, in addition to governing the federal registration and use of trademarks in the United States, also provides legal remedies to owners of federally registered trademarks from the unauthorized use by others. In order to effectively protect the value of a business’ trademarks and goodwill, the business cannot sit idle and watch competitors use its registered trademarks. If a business does not adequately police the use of its trademark by others, then a business may lose its ability to enforce its legal rights, as a court may conclude that the business waited too long and “sat on its hands.” While some businesses assign the task of policing the unauthorized use of their trademarks over the Internet to an employee, there are searching companies that will provide this type of service to trademark owners for an annual fee. Once a trademark owner obtains information regarding use of its trademark by another, however, the trademark owner must then determine whether the type of use constitutes an “infringing use,” and if so, whether to pursue legal action against the potential infringer. When policing the use of federally registered trademarks over the Internet, it is now not sufficient to police only the “visual” use of these trademarks. Based upon recent federal court decisions, the trademark owner must also look for “hidden” uses of its trademarks. One such type of hidden use is the use of a trademark as a keyword, metatag and/or as hidden text in a competitor’s Web site, which will cause a search engine to produce the competitor’s Web site

when a consumer enters the business’ trademark as a search term. Courts have found that using trademarks as keywords may create “initial interest confusion” because even though a consumer realizes that the site reached through the keyword search is not affiliated or owned by the trademark owner, the competitor’s hidden use of another’s trademark has gained an advantage over the trademark owner and, in some cases, gained the customer. Diverting Internet searchers away from the trademark owner’s Web site using their trademark is what one court has called a “free ride on the goodwill of the established mark.” This use potentially misleads the consumer to competing sites and provides a vehicle for the consumer to consider the competing product over the product initially sought. While this hidden use of others’ trademarks may ultimately be considered infringing, there are other factors that may weigh against finding liability for the unauthorized use. If a competitor’s trademark is used as a keyword and the Web site that purchased the keyword also contains some legitimate comparative advertising to support the use of the trademark as a keyword search term, the use may be considered a fair use. The length of time the unauthorized use has occurred and the quality of the evidence of actual consumer confusion will also be considered. Other factors which courts weigh are how the trademark is used, and whether there was intent to deceive the end consumer with the use of another’s trademark. There is no bright line rule regarding the use of others’ trademarks over

Internet ‘Bait and Switch’ Using another’s trademark as a keyword or metatag is the Internet equivalent of “Bait and Switch.” But the “Bait” in these circumstances is invisible to the consumer. Courts initially struggled with finding this invisible use as one that may establish liability under the Lanham Act because the consumer did not see the trademark. Courts are now finding that this type of use falls within the Lanham Act’s definition of “use in commerce” and may constitute an infringing act. the Internet. Nevertheless, ignoring a competitor’s use of registered trademarks potentially weakens the value of a company’s branding efforts and goodwill. Therefore, policing the Internet must be part of a business’ internal marketing plan. By the same token, if your business is considering the use of others’ trademarks over the Internet as part of an advertising strategy, this type of use must be carefully considered before implementing. For more information, contact Catherine Moodey Doyle at MacDonald Illig at 814/870-7662 or Catherine Moodey Doyle is an associate at the law firm of MacDonald, Illig, Jones & Britton LLP. A graduate of Allegheny College and Duquesne University School of Law, Doyle practices in the areas of intellectual property, commercial litigation and insurance defense.

March 2010 > > 7

Industrial Sales & Mfg., Inc.

Company PROFILE Industrial Sales & Mfg., Inc. 2609 West 12th Street Erie, PA 16505 Phone: 814/833-9876

Web site: Founded: 1967 President/CEO: James Rutkowski Sr. E-mail: Facility: 120,000 square feet


We Saw Itâ&#x20AC;Ś Bend Itâ&#x20AC;Ś Form itâ&#x20AC;Ś Fab Itâ&#x20AC;Ś Mill Itâ&#x20AC;Ś Drill Itâ&#x20AC;Ś Weld Itâ&#x20AC;Ś Assemble Itâ&#x20AC;Ś Then, We Finish It And Ship Itâ&#x20AC;Ś Better, Faster, and Smarter than anyone else.

Fax: 814/838-6250

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If it is made of Metal, we do it: We Machine Itâ&#x20AC;Ś Punch Itâ&#x20AC;Ś Laser Itâ&#x20AC;Ś

5:00 PM

ISM is located in Erie, PA and has been a premier manufacturer and supplier of quality machined, fabricated and assembled components since 1967. â&#x20AC;&#x153;You can find our components in products worldwide. We donâ&#x20AC;&#x2122;t have one specialty product, because we can handle just about any project that is directed our way. Our customers choose us for our edge â&#x20AC;&#x201C; the edge that has placed us a notch above the rest,â&#x20AC;? says ISM Founder, President/CEO Jim Rutkowski Sr. Our mission is to become an extension of or to support the manufacturing operation of producers of components to any industry that requires our support. Offering a full range of services in addition to machining, fabricating and assembling, ISM also specializes in welding, milling, punching, cutting, sawing, bending, forming, highdefinition plasma burning and bearing cap & housings line. Experienced with all types of materials including CF and HF steel, Page 1

alloy steel, stainless steel, brass, copper, aluminum and finished-cast products, we are able to complete your product with a complete line of finishing equipment. ISM is a true onestop contract manufacturing facility. ISM has proven itself in many global markets include industrial, medical, transportation, power and recreational industries and maintains a leading edge in the manufacturing market. We are ISO 9000 â&#x20AC;&#x201C; 2008 certified and can produce to your exact certifications. We have produced more than 5,000 unique components each produced to each of our customers unique requirements and specifications. Our customers are among the smartest and toughest to please in industry. We have kept them happy through tough times that have included six recessions, rising off-shore competition, spiking increases in material costs, regular material shortages, credit crunchesâ&#x20AC;Ś you name it. The results of our work can be found in everything from locomotives to medical equipment, from turf maintenance to industrial trucks. We are most proud to be associated and support the John Kanzius Research Project in tireless support of a cure in the treatment of cancer.

In Erie and around the World       





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EDITORIAL > by Kevin Oviatt, CPA

Financial Adviser Retirement and Exit Planning in a Down Economy The current economy is changing the plans of many business owners who were planning on selling their businesses and retiring in the next few years. For most of them, selling their business is how they fund their retirement. But with retirement savings and business values decreasing, business owners are understandably concerned with many putting off their exit plan and retirement. According to the American Institute of Certified Public Accountants (AICPA), 35 percent of financial planner clients are postponing retirement due to the recession.

depth in its leadership and make it more appealing to potential buyers. This succession plan will guarantee the company will thrive with solid leadership and a strategic direction.

So what’s a business owner to do? There are several things business owners can do now to make sure they increase the value of their business, make it appealing for suitable, potential buyers and not have to prolong their exit plans.

For those exceptional employees who are key to the company’s success, a recession is an excellent time for training, licensing or certifications to add value to the business. These employees also need to know they are important to the success of the business. Phantom stock plans, golden parachute plans or other deferred compensation plans will show key employees they are valued and provide incentive to stay. These plans will motivate them to help grow the business before, during and after a sale.

Build Value In the past, owners would look to build cash flow to attract potential investors and buyers. But steady and healthy cash flows are hard to come by these days. And in today’s economy, historic cash flows are not necessarily reliable indicators of a business’ future success. So business owners need to increase value in their company in additional ways. Customer Base These days, relying on too few customers is a big risk. A diversified customer base is important now more than ever. With many businesses shopping around for best prices, now is the time to try to win new customers. Management Succession Planning If a company relies mostly on its owners and the owners’ relationships for success, the value of a company will tank when the owners leave. Creating a succession plan for management will give the company

Quality of Personnel With the number of people currently downsized and looking for employment, now is the time to recruit strong, first-rate employees. Business owners have the opportunity to consider replacing marginal employees with stronger candidates. Having the right person in the right job is going to be very important to potential buyers.

Fine-Tune Processes A slowdown in production is an excellent time to review the company’s processes and rebuild those that need improved. Scrutinize all areas including procurement, R&D, sales, operations, production and human resources. Organize cross-functional teams to look at all areas and brainstorm new ideas. Having refined and improved your processes for maximum efficiency will add value to the business for potential buyers. Realistic Growth Strategy A post-recession plan will be important to the success of your business and top of the checklist for buyers. These potential buyers will

want to know that the business is capable of growth and ready to grow when the economy improves. Effective Cost Controls With the downturn in the economy, most business owners have looked for ways to make their business leaner and more efficient. Strategic cost reductions now will pay off when a business owner is ready to sell. And when revenues increase to normal levels, more cash will fall to the bottom line if expenses are kept in check. Exit planning is a process and not an event. Make sure to develop and revisit your exit plan according to what is happening in today’s market place. There is much that can be accomplished now to guarantee that when the time is right, both you and your company are ready to move forward. For information regarding exit planning and business valuation, contact Kevin Oviatt of McGill, Power, Bell & Associates at 814/724-5890 or Kevin T. Oviatt, CPA, is a manager with the accounting and financial services firm McGill, Power, Bell & Associates, LLP. Oviatt, who has been with the firm for six years, focuses his practice in tax planning and accounting, business valuation and litigation support services. He has substantial experience in the manufacturing and construction industries. Oviatt is a member of the firm’s Litigation Services Group. He is a graduate of Penn State – Behrend.

March 2010 > > 11

Controlling Your Energy Costs

Employers’ Energy Alliance of Pennsylvania, Inc.

How the Employers’ Energy Alliance of Pennsylvania, Inc. is Providing Low-Cost Solutions as Rate Caps Come Off While the removal of energy rate caps shouldn’t come as a shock to employers, the number of suppliers flooding the market could certainly best be described as “jolting.” Since rate caps expired in PPL territory in January, business owners in central Pennsylvania have been inundated with calls and brochures about how they can control their electric rates — a wave of information that already hit Duquesne Light and Penn Power areas in 2009, and is flooding the Penelec territory where caps will be removed in January 2011. “There are so many groups out there trying to get business that it’s confusing,” notes J. David Bell, president of the Employers’ Energy Alliance of Pennsylvania, Inc. (EEA-PA), a subsidiary of the Manufacturer & Business Association (MBA). “One business owner told me she had a stack piled so high of information that she didn’t know where to start.” In this time of information overload, however, the EEA-PA supply model has stood out because of its unique design and savings potential. Unlike its competitors, the EEA-PA operates as a wholesale pass-through purchase model — eliminating broker commissions and marketing costs, and passing that savings on to participating companies that are members of the Association. “There are a lot of energy suppliers claiming to have the lowest rates, but if you don’t buy it directly from the electric grid you are paying a premium through each channel you must go through. The more channels, the higher the markup,” he explains. “We provide the greatest value because we have the ability to purchase directly from the energy grid.” The only wholesale pass-through supplier in the Commonwealth, the EEA-PA is licensed and regulated to purchase directly from MISO or PJM Interconnection LLC, the regional electricity transmission organization that controls the grid in Pennsylvania and 12 other states. Through this framework, EEA-PA members are purchasing energy at the same discounted price as the largest electricity users and can be supplied electricity in any way they desire, whether it is through the day-ahead market (DAM), a fixed long-term rate, or a combination of the two. The program has been so attractive to employers in such a short time that the EEA-PA already is managing 93 million kilowatt hours. And, according to the Alliance, all that’s required to get started is the completion of an online application form and credit check, along with a copy of the company’s most recent utility bill for a savings estimate. “Most businesses and organizations choose EEA-PA due to the cost savings and simplicity of the program,” says Bell. “For instance, typical savings are 22 percent to 26 percent over PPL rates in central Pennsylvania. Most of the other programs that are not using the EEAPA’s wholesale pass-through model are offering 10-percent to 13percent savings. EEA-PA is not designed to make money. It’s single objective is to maximize energy cost savings for our members.” A Critical Decision With the average rate cap removal increase of 30 percent to 35 12 < < March 2010

percent, energy savings has become an increasingly important issue for businesses, especially given the tough economy and higher costs of doing business. Choosing the wrong energy supplier could be a costly mistake. “That is why energy choice is such a critical issue for employers in our state,” adds MBA President Ralph Pontillo. “Without an effective energy plan, electric rate cap removal can, in some instances, add tens of thousands of dollars to an organization’s operating costs each month.” According to Jerry Wertz, president and CEO of Data Papers, Inc., an employee-owned printing company headquartered in Muncy, Pennsylvania, which employs 88 people and specializes in commercial and digital printings primarily in the eastern third of the United States, the decision to enroll in the EEA-PA was an important one. “With a plant full of large printing presses, controlling electrical costs is one of the keys to keeping our products affordable and maintaining our profitability,” said Wertz. “The Employers’ Energy Alliance of Pennsylvania helped us to understand the impact of the pending rate cap removal, and their approach of buying directly from the grid to benefit their members made them an easy choice for our company.” Dos and Don’ts When choosing an energy supplier, Bell says, it can seem like an overwhelming task. What employers really need to know to keep the process simple are the following dos and don’ts: • Don’t sign a long-term contract with any supplier. Almost everyone has signed a cell-phone contract that they later regret and can’t get out of. The same holds true for energy. • Don’t try to achieve the lowest possible price by buying futures



Blue Ocean Strategy Center

Expiration of electric rate caps in Pennsylvania by supplier: Expires December 31, 2010 • Allegheny Power • Metropolitan Edison Company • PECO Energy Company • Pennsylvania Electric Company Already Expired • Citizens’ Electric Company of Lewisburg • Duquesne Light Company • Pennsylvania Power Company • Pike County Power & Light Company • PPL Corporation • UGI Utilities, Inc – Electric Division • Wellsboro Electric Within the EEA-PA, there are four regional contacts you can meet with by calling 800/815-2660: • David Bell — Erie and Crawford • Patty Welther — Allegheny, Beaver, Butler, Lawrence and Mercer • Chuck Jenkins — Armstrong, Cameron, Clarion, Clearfield, Elk, Forest, Jefferson, McKean, Venango and Warren • Bob Hickox — Bradford, Centre, Clinton, Columbia, Lycoming, Montour, Northumberland, Potter, Snyder, Sullivan, Tioga and Union

Energy Briefings will take place in March and April in your area. To view and register, visit or a block of electricity for delivery in the future. The EEA-PA can provide you the lowest rate.

start the preliminary application process now, so you can get your paperwork completed early. There is no obligation.

• Do attend an EEA-PA Energy Briefing or Webinar to get a better understanding of what energy choices you have.

• Do ask what other services the energy supplier provides. By enrolling in the EEA-PA, members also can utilize the other services provided by the Alliance, including energy audits and facility analysis to improve a business’s energy efficiency.

• Do complete an energy analysis to approximate your savings. The EEA-PA provides this online at www.mbausa. org. Just click on the EEA-PA button to access the Energy Savings Calculator. • Even if caps in your area have not come off yet, such as the Penelec territory, do

Bell also urges businesses to research their supplier and the level of service they can provide. The EEA-PA, he notes, is a wholly owned subsidiary of the MBA, one of

the largest employers’ associations in the United States, whose focus has been to help businesses succeed for 105 years, including controlling energy costs. “When we saw that electric costs were going to climb upwards of 30 percent, we sought ways to help our members,” says Bell. “The service you can expect is nothing less than what you’d expect from the MBA.” To learn more about the Employers’ Energy Alliance of Pennsylvania, Inc., click on the EEA-PA button on or call David Bell at 814/833-3200 or 800/8152660. March 2010 > > 13

Bill DeLuca, Senior Vice President Commercial Lending Division; Dave Zimmer, President; Don Damon, Senior Vice President Private Banking Division; Steve Cappellino, Senior Vice President Meadville Area Market

The Local Decision-Making Difference At ERIEBANK, we are focused on meeting the financial needs of individuals, professionals and local businesses in the way only a community bank can deliver. Our management team and board of directors reside right here within the Erie and Meadville areas, which results in quicker, better informed banking decisions for customers. Main/Interchange Office 2035 Edinboro Road • Erie, PA 16509 • Phone (814) 868-7523

Asbury Road Office 2615 Asbury Road • Erie, PA 16506 • Phone (814) 835-1116

Downtown Office & Private Banking 101 West 10th Street • Erie, PA 16501 Phone (814) 454-3477 • Private Banking (814) 454-3444

Harborcreek Office 5723 Buffalo Road • Harborcreek, PA 16421 • Phone (814) 899-5101

Meadville Office 885 Park Avenue • Meadville, PA 16335 • Phone (814) 336-1223

Having a local presence gives customers the opportunity to get to know and work directly with our decision makers. The ERIEBANK team is comprised of seasoned, local professionals who understand the business community and are familiar with our local economy and market conditions. We make decisions based on local knowledge, not national trends and speculation. Our decisions go beyond the loan application. We know our customers — they’re our neighbors and fellow community members. Come enjoy the

many relationship rewards that are waiting for you at ERIEBANK.

Wellness News

EDITORIAL > by Terri Wolfe, OTR/L, CHT

‘BlackBerry Thumb’ – Are You at Risk? Oh, that BlackBerry is so sweet, isn’t it? But watch out for the thorny issue of “BlackBerry thumb!” Repetitive motion issues, which have long afflicted computer users and video gamers, have invaded the handheld world. The informal name for the malady — “BlackBerry thumb” — has become the phrase that encompasses a variety of repetitive stress injuries of the hand, and the thumbs in particular. A result of overusing small gadget keypads for text messaging, emailing, and trackball spooling through music lists and address books, the throbbing pain associated with BlackBerry thumb can manifest itself not only in your thumb, but your wrists as well. Continued stress on the tendons, nerves and ligaments in your hands and arms can potentially lead to long-term problems such as carpal tunnel syndrome and tendonitis. The thumb is a very mobile joint, but is designed to function as a stabilizer for pinching and gripping with the fingers. While a full-sized typing keyboard is designed for quick strikes by the more nimble fingers, the thumbs are relegated to hitting only the spacebar. For the more than 12 million Blackberry, smartphone and PDA users worldwide, this upgrade of the lowly thumb to fifth finger status comes with an upgraded risk of injury as well — particularly for people old enough to be developing arthritis. While no national statistics exist on how many people suffer from this type of thumb ailment, the American Society of Hand Therapists has issued several consumer alerts since 2005 regarding the proper use of handheld devices. In conjunction with these alerts, the American Society of Hand Therapists also

released a list of usage guidelines and exercises to help technology devotees avoid painful hand and arm injuries. • If you experience pain during the activity, stop. Pain is one of the ways your body lets you know that you are overexerting a particular muscle group. • Use a neutral grip when holding the device. A neutral grip is when the wrist is straight, not bent in either direction. • Take a break every few minutes or switch to a different activity. Stretch your fingers and thumb. Repetitive motions can lead to tendon or nerve irritation. • Whenever possible use the device supported on a desk or tabletop. Use a wrist rest, gel pad, or place pillows in your lap and rest your arms on the pillows. This will not only support your arms, but also allow you to keep your head in a more upright position and decrease neck strain. • Sit in an appropriate chair. This is a chair that enables you to put both feet on the floor and provides good back support. • Switch hands frequently and vary the use of fingers/digits. • Frequently look away from the screen and focus on a distant object. How to Cure ‘BlackBerry Thumb’ If your hand pain has reached a level of pain to where you are seeking relief, several options are available to you. You may be able to alleviate mild symptoms yourself by simply reducing the amount of thumb typing you are doing and allowing your hands to rest. Application of ice to the affected area will reduce swelling and help to decrease pain.

Occupational or physical therapy is a good choice for treating long-lasting deep-seated pain and discomfort. A Certified Hand Therapist can instruct you in ergonomics, along with a program of stretches and exercises to increase your awareness of your body mechanics and reduce your symptoms. Your therapist may also utilize massage, electrical stimulation and other pain relieving modalities, or fit you for a hand orthotic or “splint” to stabilize the thumb and help it to rest. If your pain is severe, your physician may administer a cortisone injection. Surgery may be considered as an option of last resort. Remember, “BlackBerry thumb” is a syndrome — a collection of markers and symptoms, and not a singular medical diagnosis. Listen to your body! Don’t give up your BlackBerry or iPod — just give it a rest once in a while. For more information, contact Terri Wolfe OTR/L, CHT, at 814/453-4743 or, or visit Terri L. Wolfe OTR/L, CHT is the owner and director of the Hand and Upper Body Rehabilitation Center. She has been a licensed Occupational Therapist since 1977 and is a founding member and past president of the American Society of Hand Therapists. A Certified Hand Therapist since 1993, Wolfe has been restoring wellness to Erie area patients with upper extremity injuries for 25 years. March 2010 > > 15

HR Connection VIDEOCONFERENCING USE ON THE RISE, SURVEY SAYS More than 1,200 business professionals in the United States, Japan, South Korea and China report that video chat/conferencing is rapidly being adopted worldwide, for business and personal use. The findings by Research Now and sponsored by Global IP Solutions shows that business professionals are adopting video in an effort to communicate and collaborate more clearly and effectively. In the United States, 40 percent of business professionals surveyed indicated that their company will be deploying a video communication solution within the next six to 24 months. IT EXECS EXPECT UPTURN IT executives are feeling optimistic about a possible sector recovery in

DEPARTMENTS > Contact: John Onorato


4 is a Pennsylvania law that address es extended coverage for dependents. It does not require employers to extend coverage for dependents, but if extended it must apply to all emp loyees who want it. This option, which began January 1, 2010, allows coverage for dependents up to age 30 as long as the dependent: 1) is not married; 2) has no dependents of his or her own; 3) is a resident of Pennsylvania or a full-time student; and 4) is not cov ered or eligible under any other group or individu al plan. For more information, contact Patty Smith at 814/833-3200, 800/815-2660 or psmith@mbausa .org.

2010, according to a survey from the tech trade association CompTIA. Among IT executives surveyed, 34 percent said they’re likely to boost spending over the next six months,

Patty Smith is the director of Em ployee Benefit Service s at the Manufactu rer & Business Asso ciation.

and 31 percent plan to hire more staff. On average, most see global IT spending rising 2 percent to 4 percent this year, with growth slightly lower in the United States.

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Second Foundation

Second Foundation 2214 West 8th Street Erie, PA 16505 Phone: 814/454-5215 Fax: 814/454-4238 Web site:

Second Foundation Vice President Ken Smith and President David Popowich

Second Foundation — Growing by Helping You Manage Your Bottom Line It was an exciting time for the team at Software Technology Concepts when they merged with Second Foundation. “We were a local leader in the area of Managed Services and Business Management Systems,” says Vice President Ken Smith. “With the economic downturn, we knew we wanted to be able to offer our clients the right tools to be able to sustain and grow their businesses. Our merger with Second Foundation gave us additional resources and expertise to be able to do that.” STC/Second Foundation offers their clients products and services that help them reduce cost in the areas of managing their IT infrastructure and be pro-active in maintenance and support to eliminate costly downtime. These managed services help local manufacturers to ensure that systems are business enablers and are adding to the bottom line. Combined with a portfolio of business and financial management systems including Epicor and Microsoft Dynamics, the Second Foundation team is focused on making sure you have the right information available to you to run your businesses efficiently. Second Foundation Managed IT

provides 24 hours a day, seven days a week monitoring of all the critical metrics in your network through their Caretaker™ managed services product. Monitoring includes taking care of the ongoing management, monitoring, and maintenance of networks, software, hardware, and related IT services within your organization. “With our Caretaker™ product, you benefit from a pro-active approach designed to prevent IT problems before they create added costs to your company,” says Smith. “Our Caretaker™ clients realize an average lowered IT cost of 30 percent and benefit from improved system reliability overall,” says David Popowich, president of Second Foundation. Second Foundation Managed IT gives its clients the peace of mind knowing that a team of certified technicians is watching over their network at a fraction of the cost it would take to hire the same talent in house. If you need peace of mind that your systems are working at peak performance, call Second Foundation.

Electronic Communication Services Inc.

Company PROFILE Electronic Communication Services Inc. Erie, PA Phone: 814/455-4181 or 800/837-5790 E-mail: Web Site: Number of Employees: Nine

Electronic Communication Services Inc. (ECS) expends a great deal of time and resources to stay current in the ever-changing Voice/Data Technology Field. Whether you are looking for a basic Telephone System with Voice Mail or a VOIP Telephone System that is networked to multiple locations, ECS is committed to providing the latest technology along with the best customer service.

Markets Served: • Small to Large Businesses • Hospitality • Education • Real Estate • Manufacturing • Legal / Financial • Government • Automotive • Call Centers • Nonprofit

Products/Services Offered: • Business Telephone Systems Digital / VOIP Wired / Wireless • Data Networks Wired / Wireless • Unified Communications • Cabling Telephone / Data

Date Founded: 1989


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Celebrating our 95th year in business!


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814-456-5377 1-800-452 8 814-456-5377 1-800-452-8668 1705 Raspberry Erie, PA 16502 www.jh

OntheHill Anna McCauslin is the state government relations representative for the Manufacturer & Business Association in Harrisburg. Contact her at 717/525-7213 or

DEPARTMENTS > Contact: Sheila Sterrett

2012: It’s The End of the

Commonwealth As You Know It

2012 will be a tough year for Pennsylvanians. The stars will align and three issues will come into play: public pensions to be paid, the end of the American Reinvestment and Recovery Act funding, and the depletion of the Rainy Day Fund. To compensate, some legislators will want to cut programs; others will want to increase taxes. Let’s step back and look at the pension problem and how we got here. History of Missteps Pennsylvania public teachers, employees, paid firefighters, police, retirees and legislators have a defined benefit plan. Upon retirement, they receive a guaranteed amount of money based on the number of years served, and the top three years of income. The Ridge administration and legislators increased legislative pensions by 50 percent, state employees by 25 percent, decreased the vested years of employment from 10 to five, and cut employee contributions because of multibilliondollar excesses. Unfortunately, due to the 9/11 attacks, the market tumbled and the two largest retirement systems lost a combined $33 billion. Legislators heeded to the demands

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!"#$%%#$&&'#()* !"#$%&'$#"()$(#$*'%$+,%%'$-('"$.(/0#%'0(,$1"'203"$4'%205"$6%&'$7&10/"11$ 80#9$($9"(,#96$8%':4,(3";$+%'$%2"'$<=$6"('1>$8"?2"$7""/$5%0/@$.&1#$#9(#$ 0/$#9"$#'0A1#(#"$('"(;$B%0/$%&'$2"'6$1(#01C"5$3&1#%)"'1$(/5$1""$896$%&'$ 1&4"'0%'$1"'203"$)(:"1$DE#$F,,$F55$G4HI

of retirees and increased their cost of living adjustment just before another market downfall. They then passed a law spreading the losses until 2012. Compounding Factors • Pennsylvania has the highest number of individual pension plans, nearly 3,100, with a combined administrative expense of approximately $36 million. Merging plans would cut administrative costs. • It is unlawful per the Pennsylvania Constitution to change the plans of current employees and retirees but the plans could be changed for new hires. One solution could be to change the system from a defined contribution to a 401(k)type plan, but lacks union support. • Assuming the market will not rebound in time to make up for the shortages, some funds will need to have revenue from the employer — making the taxpayer responsible. • Retirees have health insurance through their pension, and health-care costs are rising. Unfortunately, single payer health-care systems are proposed in the state legislature and Congress, which would be very costly if enacted. Currently, only a handful of the 253 state legislators are discussing this problem. To learn more, register for the Association’s Pension Forum on Tuesday, March 30, at or by calling 814/833-3200.

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March 2010 > > 19

Legal Q&A I HAVE AN EMPLOYEE WHO APPEARS TO BE ON PERSONAL PHONE CALLS MOST OF THEIR SHIFT. THE PHONE CALLS MAY BE WORK-RELATED, BUT I HAVE SERIOUS DOUBTS THAT THEY ARE. CAN I EAVESDROP ON HIS PHONE CONVERSATIONS? Federal and state wiretapping laws give employees a limited right to privacy in their telephone conversations as well as voicemail messages. An employer who wants to monitor employee telephone calls or voicemail messages must warn employees that it is doing so. The employer must also establish that the monitoring is undertaken in the ordinary course of business, such as to monitor performance. An employer may also monitor

communications if it has reason to believe that an employee is using the telephone to commit theft or in some way damage the company, but again, only if the employer notifies the employee that it plans to monitor. An employer who monitors phone calls or voicemail messages for any reason must stop monitoring as soon as it ascertains that a call or message is private. AN EMPLOYEE RECENTLY COMPLAINED THAT SHE WAS RECEIVING UNWANTED E-MAIL MESSAGES AND LINKS TO WEB SITES FROM SOME OF HER COWORKERS. I WANT TO LOOK AT THESE EMPLOYEES’ E-MAIL ACOUNTS TO SEE WHAT ALL THEY HAVE BEEN SENDING.

CAN I DO THIS? The answer is probably yes. Courts have regularly upheld an employer’s right to read e-mail messages sent and received on the company’s e-mail system, particularly if the employer has a compelling reason to do so. However, you will be on safest legal ground if you already have a written policy warning employees that e-mail messages sent on company equipment are not private, and that you may review and read those messages at your discretion. Have a legal question? Get answers! Contact the Association’s Legal Hotline today at 800/815-2660.

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DEPARTMENTS > Contact: John Onorato

Ruling Limits Remedies for Computer Fraud, Abuse A federal appellate court recently made it slightly more difficult for an employer to use the federal Computer Fraud and Abuse Act (CFAA) against an employee. The CFAA, enacted in 1984, is intended to prosecute hackers and prohibit individuals from accessing computers “without authorization” or in excess of their authorization. The CFAA does not define “authorization,” but the dictionary defines it as “permission or power granted by an authority.” Based on this definition, the Court in LVRC Holdings, LLC v. Brekka, No. 07-17116, Ninth Circuit Court of Appeals (September 15, 2009) stated that an employer gives an employee “authorization” to access a company computer when the employer gives the employee permission to use it.

While still employed by LVRC, Brekka had permission to use LVRC’s computers. He used his employer’s computer to e-mail to himself various LVRC documents to further his own personal interests. LVRC argued that this use of the computer was “without authorization” within the meaning of CFAA. The Ninth Circuit disagreed with this argument, saying “authorization” means “permission.” Specifically, the Court said, “[w]hen an employer authorizes an employee to use a company computer subject to certain limitations, the employee remains authorized to use the computer even if the employee violates those limitations. It is the employer’s decision to allow or to terminate an employee’s authorization to access a computer that determines

whether the employee is with or ‘without authorization.’ ” LVRC did not have a confidentiality rule with respect to e-mail. The practical impact of this case is to remind employers to review their electronic communications policy to ensure that they describe what conduct is “authorized” and what conduct exceeds “authorization.” For more information, contact me at 814/8333200, 800/8152660 or jonorato@ Attorney John Onorato is the vice president/general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.



Call Doug Loesel or Joe Parlak and find out.

814-833-5433 !"#$#%&'()**+,-.$/0*.(#,12#.(34,-.(5,6$,*.,*/7)"068#9,*2#.7,+"0,7)#,:;1,<*$7#0.,1%%6*.(#,=0"20*>5 March 2010 > > 21



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The Network Congratulations to Jim McBrier and Timothy Shuttleworth for being honored among the region’s “Most Admired CEOs”



6254 Western Trail McKean, Pennsylvania, 16426

CONGRATULATIONS to all Admired CEOs and a special CONGRATULATION to Jim McBrier at Builders’ Hardware & Specialty from your friends at Citizens Bank!”

Telephone: 814-602-9331

March 2010 > > 23


CEOS 2010


Norb Kaczmarek Title: CEO Company: Erie Federal Credit Union, which has over 35,000 members and assets of $307 million Web site:

Francis J. Lynch III Title: President Company: Central Heating & Plumbing Co. Inc., a provider of heating, cooling and plumbing services headquartered in New Castle, Pennsylvania Web site:

Anita Rose Marcoline Title: President Company: McCormick Coffee, an Erie-based company and tri-state leader in coffee services for office, restaurants and institutions Web site:

James McBrier Title: President Company: Builders’ Hardware & Specialty Co., Inc., one of the largest privately held architectural distribution companies in the United States headquartered in Erie, Pennsylvania Web site:

“In addition to being the CEO of Erie Federal Credit Union, Norb has served on the boards of the PA Credit Union Association and the PA Credit Union Foundation. This past year he was inducted into the Credit Union Hall of Fame. One of our vendors described him as being ‘a visionary who can implement a new product or service, we all know will be successful simply because of his vast knowledge and wisdom.’ ” — Submitted by Sandi Carangi

“Francis Lynch III, president, has shown a commitment to his employees, customer base and community. Through his advanced vision and leadership in the areas of training, energy efficientcy, workplace safety and community giving, he has led Central Heating & Plumbing, Inc. to become a leader in the HVAC industry emphasizing total customer satisfaction.”

“…In good times as well as bad Anita has led her company with vision and determination. The success and growth of the business has been a measurement of her ability to lead in difficult times… She always puts her employees’ needs first. She never makes a decision without asking how it will affect those around her. Strong leaders are many, but strong caring leaders, those who truly care about their team, are few. Anita is one of those leaders, and one of the best! She deserves this recognition.”

“Jim truly cares about his employees. During profitable times, every employee across the board is rewarded. He is constantly looking for ways to grow the business, and reinvests profits to make us stronger…” — Submitted by Susan Banka

— Submitted by Debbie Lynch

— Submitted by John Machuga

Dr. Donald F. Brautigam, MD Title: CEO Company: Westfield Family Physicians, a New York-based family medical practice Web site:

Gail Cook Title: CEO Company: Erie General Electric Federal Credit Union, which has more than $207 million in assets and over 33,000 members in the region Web site:

Antoine Garibaldi, Ph.D. Title: President Company: Gannon University, a private faith-based university in Erie, Pennsylvania Web site:

Bill Henslee Title: CEO Company: e2b teknologies, headquartered in Chardon, Ohio, provides ERP solutions for distribution, manufacturing, and service companies Web site:

“Dr. Brautigam chose the rural area of Westfield, NY in 1979 to begin his practice as a family physician. Since then, the practice has grown to include seven physicians and three midlevel providers. He is a strong fair leader that is always honest and truthful (even when it hurts). He makes sure that his partners, employees and patients’ needs are met before his own. He lives by strong Christian values and is one of the most humble men I know… . His decision making is based on delivery of a highquality product, health care, to the people of Northern Chautauqua County.”

“Gail inspires me to do great work. She has worked tirelessly to help our credit union grow into one of the region’s largest. Many credit union professionals statewide look up to her as someone who takes calculated risks and she is never afraid of change or progress.”

“One of the greatest strengths of Antoine M. Garibaldi, Ph.D. … is relationship building. His vision and compassion have moved the University forward through structural and organizational changes while maintaining a caring community where students, faculty and staff are comfortable learning and working…”

“… I asked all 34 employees to send me one word that best described Bill Henslee. I believe the employees say it best. Here were the common descriptive words I received: focused, humble, visionary, generous (almost to a fault), driven, considerate, passionate and knowledgeable.”

— Submitted by Trent Mason

— Submitted by Karla Mullenax Wludyga

— Submitted by Whittney B. Gilstrap

— Submitted by Nanette Bartkowiak, RN

Sister Phyllis McCracken, SSJ Title: President and CEO Company: Saint Mary’s Home of Erie, a Catholic faith-based Continuing Care Retirement Community Web site:

John B. Pellegrino, Sr., P.E. Title: President and CEO Company: Ridg-U-Rak, Inc., a North East, Pennsylvania-based manufacturer of storage rack systems for distribution centers, industrial warehouses and retail shopping facilities Web site:

James Rutkowski Sr. Title: President and CEO Company: Industrial Sales & Mfg., Inc., an Erie-based manufacturer and supplier of quality machined, fabricated and assembled components Web site:

Timothy G. Shuttleworth Title: President and CEO Company: Eriez, with world headquarters in Erie, designs, develops, manufactures and markets magnetic separation, metal detection and materials feeding, screening, conveying and controlling equipment Web site:

“Sister Phyllis has truly dedicated herself to the mission and vision of Saint Mary’s for over 26 years. She has a devout dedication to seniors, which is evident as soon as you walk into our facilities. Above her leadership ability for Saint Mary’s, which now encompasses several major expansion projects, Sister Phyllis is an active member of our community. She also strives to keep employees as well as our organization active within our community, especially helping other nonprofit organizations through volunteer work, collaborations and donations.”

“I have worked for John B. Pellegrino … for 26 years, and he is a man of great integrity. He is genuinely concerned for each and every employee and proudly leads the company’s day-to-day operations. His leadership and generosity, within the company and in the community, can be felt everywhere. That is only surpassed by his vision of the future success of Ridg-URak for many years to come.”

“…Jim is a respected competitor in our business and a valued citizen in our community. He has always supported the community from the local Ducks Unlimited banquets to the John Kanzius cancer research project and has supported our industry by being active on boards like the MBA and working with area elected officials.... Jim has always proven himself to be a leader for his family, his community and within the industry he works and continues to work tirelessly in his business at a time when most people would be sitting back leaving the tough work to someone else.” — Submitted by Bill Muck

“Under the leadership of Tim Shuttleworth, Eriez thrives. Even in the current recession, the company has set records for shipments and sales. His commitment to technical innovation continues to position Eriez as the leader in the primary industries it serves. He is dedicated to his company, employees and community. During his tenure, he has maintained a collaborative, unified work environment for office, plant and international staff. He leads by example by practicing the Golden Rule. Under his leadership, Eriez sales have doubled.” — Submitted by Keith Jones

— Submitted by Anthony J. Allegretto

— Submitted by Karen Jendruczak


Congratulations to all the We see you and your ideas

“Most Admired CEOs”

d i f f e r e n t l y.

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First Niagara is proud to acknowledge and support the leadership of the CEOs in our community. We look forward to a long-lasting partnership.


Hubbard Bert Karle Weber, Inc. 1250 Tower Lane • Erie, PA 16505 • (814) 453-3633

also admire our client CEOs… V23162I/$Y"831 V2030I/<$$$$$$;I31$$$$$H49?I2W1<



Thank you for your tremendous contributions to our community

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Mr. John Pellegrino


Sr. Phyllis McCracken Mr. Jim Rutkowski, Sr.

Dr. Antoine Garibaldi

Mr. James McBrier

Mr. Tim Shuttleworth


“The Bloomstine’s” Property, Liability and Workers’ Compensation Insurance Agents 123 West 9th Street, Erie, PA 16501

EDITORIAL > by Ken Polk

Tech Update

What’s New in HR Technology? Five questions HR should be asking IT to ensure that your organization’s HR function is operating at peak productivity A 1987 article in The New York Times by Nobel Prize-winning economist Robert Solow ignited a firestorm when it questioned the relationship between computers and productivity. Though that debate continues today on certain hot topics — the relative merits of being wired 24/7, for example — the majority of HR professionals are certain to acknowledge the role that computers and technology play in easing their departments’ daily administrative burdens. Here are five questions you should be asking your IT department to start a productive dialogue: 1. How redundant are we? If people are your organization’s most important asset, your HR data is equally important. A Pepperdine University study recently estimated that lost data costs U.S. companies an average of $18.2 billion each year. What protections do you have in place to protect employees’ privacy and guard against data loss — whether from hardware failure, environmental catastrophes like fire or flood, or external security breaches from malicious hackers or identity thieves? Review your system protections with your IT pros to ensure that adequate data protections exist, your backup and recovery systems are tested regularly, and a business continuance plan is in place in the event that one or more of your offices becomes inaccessible. 2. How integrated are we? Growing companies often find themselves with “patchwork” HR IT solutions cobbled together and modified by necessity as new needs arise. Lack of integration across vital systems can have serious repercussions in terms of productivity and continuity. Fully integrated systems (also known as Human Resource Information Systems, or HRIS), bring together under a single interface

interdependent HR processes such as payroll processing, benefits administration, and applicant tracking. With the latest generation of HR applications delivered over the Web (known as SaaS, or “Software as a Service”), companies can skip the expensive investments in hardware that presented a significant barrier to implementation in the past. Upgrades, too, are simpler than ever, as developers can push out new features faster, allowing your business to adjust to shifting market conditions as needed. 3. How user-friendly are we? Companies are now turning to selfservice portals that allow employees to access, maintain and modify information via a Web browser. This shift to self-service functionality for employees and managers alike is a direct response to the competitive challenges of today’s knowledge economy, making it the preferred method for improving internal service and enhancing the lines of communication between your company and its employees. The benefits of these self-service portals are twofold in positioning your organization as an employer of choice — demonstrating your responsiveness and techno-savvy to employees, while freeing your HR team to concentrate on more strategic initiatives to further reinforce that leadership position and attract top talent. 4. How can we better manage recruitment, staffing and professional development? Applicant management programs are fast becoming the norm for automating functions like processing applications to ranking respondents’ resumes — routine tasks that often consume the bulk of a hiring manager’s time and attention. Screening and selection tools take the process one step further, ensuring thorough candidate screening to ensure compliance and reduce risk.

Once your organization’s made the right hire, technology-based time and attendance solutions can streamline employee scheduling, track activities, and manage absences, helping you optimize your labor investment. 5. Do we have a clearly defined technology access policy? For many senior managers, access to social media technology — blogging, Twitter, Facebook, YouTube — is immediately seen as a distraction or time waster. Before adopting a knee-jerk “no access” policy, consider the elements of social networking that may be in line with broader management strategies. Harnessing technology to drive innovation With human capital the largest investment of just about every business, it makes sense to also invest in the technology needed to make the most of that valuable capital. By staying ahead of the technology curve and making sound investments, you’ll ensure that your HR strategies and goals are aligned with the technology needed to achieve them. For more information, contact Ken Polk at ADP at or 814/460-4570.

Ken Polk is the district manager for Automatic Data Processing (ADP) in the Erie, Pennsylvania and Jamestown, New York areas. By utilizing technology, ADP specializes in helping organizations achieve better business results by streamlining key back-office administrative duties like payroll and human resources administration along with time and attendance and benefits management.

March 2010 > > 27

People Buzz SEAWAY MANUFACTURING NAMES NEW PRESIDENT Erie-based Seaway Manufacturing Corporation, which designs and manufactures vinyl replacement windows, doors, storm products and sunrooms, recently promoted its vice president, Jana Glenzer Goodrich, to president. Goodrich’s change in title more accurately reflects her roles of oversight and guidance in all daily operations as well as her leadership in the formulation of policy and strategy at Seaway. Seaway’s former president and chief executive officer, Michael Goodrich, will remain active in Seaway’s strategy formulation and planning. His position will now be chairman and CEO. Prior to serving as the vice president of Seaway Manufacturing, Jana Goodrich worked for two Fortune 500 companies, as a territory marketing representative for Xerox, and as a systems engineer for IBM. GOLDSMITH ELECTED PARTNER AT MALIN BERGQUIST CPA Timothy A. Goldsmith, with more than two decades of public accounting and financial reporting experience, has been elected a partner of Malin Bergquist, Erie’s largest independent CPA firm. Goldsmith oversees audits for clients in northwest Pennsylvania and Ohio with annual revenues up to $200 million, in industries including distribution, construction, insurance, banking and not-for-profit organizations. The firm also has promoted certified public accountant Christine Wilhelm to tax manager. Wilhelm is a certified fraud examiner and certified divorce financial analyst and has practiced as an accountant in Erie since 2000. 28 < < March 2010

Albert J. Isacks, CPA, director of estate services for Malin Bergquist, has been appointed to his third term on the Trust, Estate and Gift Tax Technical Resource Panel of the American Institute of Certified Public Accountants. The panel communicates with the Internal Revenue Service, Treasury and Congress about improvements to the law and rules governing fiduciary income tax, estate and gift and generation skipping tax. The firm also promoted accountants Rebecca Dudenhoeffer to manager and Bradley Fretwell to staff accountant II. Dudenhoeffer is an auditor with the firm’s Public Company/SEC and Not-for-Profit Groups. Fretwell is with the firm’s Audit Group, which serves clients in the not-for-profit, automobile dealership and employee benefit plan fields. STRATEGY SOLUTIONS WELCOMES TWO PROFESSIONALS Adam Mook recently joined Strategy Solutions, Inc. (SSI), as senior manager of Corporate and Community Services. He previously worked for Gannon University’s Small Business Development Center. Additionally, Jacqui Lanagan has returned to SSI as senior manager for Nonprofit & Community Services. Lanagan is responsible for providing project management, as well as client coordination support for training, research, planning, facilitation, organizational and program development projects for community,

EDITORIAL > Contact: Karen Torres

government and nonprofit clients. Strategy Solutions, Inc., founded in 1996, is a business development firm providing strategic planning, market research, and project management support services to organizations and communities with the vision to help create healthy communities. HBK SORCE FINANCIAL’S PICCIRILLO EARNS RECOGNITION R. Dean Piccirillo, CFP®, CRPS®, AIFA®, senior financial advisor and principal with HBK Sorce Financial, LLC, was named to the list of 300 Most Influential Advisors in Defined Contribution by The 401kWire. During his tenure at HBK Sorce, Piccirillo has served as the firm’s chief operating officer as well as HBK Sorce’s Chief Compliance Officer. He is currently a member of HBK Sorce Financial LLC’s Operating, Investment Policy and Risk Management committees. Piccirillo is a Certified Financial PlannerTM, Chartered Retirement Plans SpecialistTM, and Accredited Investment Fiduciary AnalystTM, holding the NASD Series 6, 7, 24, 28 and 63 Licenses. UNIVERSAL WELL SERVICES HIRES SENIOR TECHNICAL ADVISOR Robert W. Garland has joined Universal Well Services, Inc. (UWS) in Meadville as senior technical advisor. Garland began his career in the oil and gas industry with Gearhart Industries and is a recognized expert in wireline services and well log interpretation. Before joining UWS, Garland was the Northeast regional sales manager for Superior Well Services. He received his bachelor’s degree in civil engineering from Michigan State in 1980, and went on to earn his MBA from Robert Morris University.

Strength in Numbers The MacDonald Illig Intellectual Property Group You will not find a team in Northwestern Pennsylvania with more range and depth of experience than the Intellectual Property Group at MacDonald Illig Jones & Britton LLP. With five registered patent attorneys and the resources of MacDonald Illig behind them, clients take confidence in their patent, trademark, copyright and trade secret protections and know they are prepared if litigation is necessary. For all your intellectual property legal needs, the attorneys of the MacDonald Illig Intellectual Property Group stand ready to help.

Business Law • Litigation • Bankruptcy & Creditors’ Rights • Labor & Employment • Environmental • Intellectual Property Health Care • Government & Municipal • Immigration • Family Law • Trusts & Estates • Tax • Real Estate • Construction

100 State Street • Suite 700 • Erie, PA 16507 • • 814-870-7600

MacDonald Illig Jones & Britton LLP


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Shouldnâ&#x20AC;&#x2122;t the people who insure your health understand it? This managed care plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. If you have questions, call Member Services at 1-888-876-2756.

March 2010 Busines Magazine  

Employers’ Energy Alliance of Pennsylvania, Inc. discusses the surge in energy suppliers and how the EEA-PA is providing low-cost solutions...

March 2010 Busines Magazine  

Employers’ Energy Alliance of Pennsylvania, Inc. discusses the surge in energy suppliers and how the EEA-PA is providing low-cost solutions...