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BA Helping M rers u t c a f u n a M ir e h T s s e r Add Logistics s! e g n e l l a h C + Do you feel like you are paying more than you

should for transportation and logistics services?

Meet Your Extended Logistics Department by visiting

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+ Does your business ship or receive pallet-size or larger “freight” shipments (i.e., less-thantruckload or full truckload)?

+ Is transportation and logistics a major expense item for your business?

+ Are you managing multiple carrier and/or 3PL relationships with limited resources?

+ Do you import or export freight shipments or

would you like to but don’t have the in-house expertise to do so?

A “yes” answer to any of these questions would indicate a possible opportunity to help you save time, money and reallocate personnel to areas where they can add greater value and grow your operation.


BUSINESS VOL. XXIX NO. 5 | MAY 2016

MAGAZINE

Invest in Solid Engineering

INDUSTRIES, INC.

7 ANNUAL MADE IN PA TH

SMALL, MIDSIZE MANUFACTURERS FOSTER TECHNOLOGY TRANSFORMATION

SPOTLIGHT Q&A: WHY EMPLOYERS SHOULD EXPLORE THE VETERAN’S INITIATIVE

MBA WELCOMES NEW BOARD MEMBERS


Financial Wellness for Your Business

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FEATURES FEATURE STORY | WHAT’S INSIDE

3

A MANUFACTURING ECONOMY Industry is the keystone of Pennsylvania’s prosperity

COVER STORY | LOCAL PROFILE

4

7TH ANNUAL MADE IN PA

Big investments go beyond big companies – Many small and midsize manufacturers are fostering a technological transformation in our own backyard.

SPOTLIGHT Q&A| EMPLOYMENT

7

DEPARTMENTS

EVENTS & EXTRAS

18

BUSINESS BUZZ

35

19

PEOPLE BUZZ

29

HR CONNECTION

33

LEGAL Q&A

FIRM PROGRESS

EDITORIAL

NETWORKING AND MORE

HEALTH MATTERS | KEY ESOURCES

13

ENDORSED

WORKPLACE TRENDS

GET ANSWERS

Executive Editor & Senior Writer Karen Torres ktorres@mbausa.org Contributing Writers Robert E. Gandley Lowman Henry James Kinville

How are businesses still struggling to find good talent when it appears to be abundant? The Northwest Commission’s executive director speaks about the group’s recently launched Veteran’s Initiative and the benefit to employers and former military personnel. Jill Foys

READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com.

LEGAL BRIEF | UPDATE

15 Cover Photography iStockPhoto.com Additional Photography R. Frank Photography Casey Naylon Karen Torres

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

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On the Cover: Learn about the many manufacturing companies that are driving investments in technology

26

Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

© Copyright 2016 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.

Guest columnist Lowman Henry explains how the Wolf administration has gone from a “budget crisis” to a “constitutional crisis.”

SPECIAL SECTION | LISTINGS

and innovation in the Commonwealth. For full story, see page 4.

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

Environmental penalties: When will they stop growing? Robert E. Gandley

ON THE HILL | SPENDING

Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org

Mission Statement: The Manufacturer & Business

Why you need to make your employee assistance program a trusted resource in your workplace. James Kinville

See our 2016 Showcase of Manufacturers featuring some of the companies that are proud to manufacture in Pennsylvania.

mbabizmag.com • MAY 2016

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FEATURE STORY | WHAT’S INSIDE

A Manufacturing Economy INDUSTRY IS THE KEYSTONE OF PENNSYLVANIA’S PROSPERITY Manufacturing is the foundation on which Pennsylvania’s economy was built and the driving force that provides family-sustaining wages for Pennsylvanians across the Commonwealth. Natural resources, educated workers and infrastructure are credited for driving the state’s production, which ranks eighth in the nation, according to recent research. And that’s not even the whole picture.

Manufacturing is one of Pennsylvania’s most important wealth generators.

Research shows that manufacturers in Pennsylvania account for 12.01 percent of the total output in the state, employing 9.74 percent of the workforce. Total output from manufacturing was approximately $79.62 billion in 2014. In addition, there were 569,700 manufacturing employees in Pennsylvania in 2015, with an average annual compensation of more than $62,000. According to Pennsylvania’s True Commonwealth: The State of Manufacturing study commissioned by Pennsylvania’s Industrial Resource Centers, it is the largest source of Gross State Product (GSP) and its fourth-largest employment sector. Manufacturing remains a key part of Pennsylvania’s innovation infrastructure and is present in all parts of the state.

As the demand for manufacturing grows, it in turn spurs the creation of jobs, investments and innovations elsewhere.

Manufacturing has the highest multipliers of any other Pennsylvania industry, according to the IRC study. Every $1 increase in final

demand for products manufactured in Pennsylvania leads to a total increase in gross value added by all industries of $2.52. No other industry in the state comes close to rivaling the impact of manufacturing: • Experts estimate that a $1-million increase in final demand for manufactured products in Pennsylvania results in the creation of 4.2 jobs; 2.9 jobs directly and indirectly in manufacturing and an additional 1.3 jobs through the spending of employees of the manufacturers and the employees in their supply chain; • Manufacturing’s labor income multiplier effect of $3.60 is more than double that of most other Pennsylvania industry sectors. Manufacturing’s multiplier is so extraordinarily high because of the length of its supply chain, which is reflected in its indirect income multiplier of $1.74.

that are proud to operate here, as well as the innovation and technology that many small and midsize firms are making in their operations right here in our own backyard. We’ll also introduce the MBA’s new Board of Governors and talk with Northwest Commission Executive Director Jill Foys on the organization’s new Veteran’s Initiative that is helping connect employers with former military personnel to help address the shortage of skilled workers. Experts agree that Pennsylvania needs such resources and investments for industry to grow. The Manufacturer & Business Association (MBA), for one, has taken the lead as a strong advocate for pro-growth policies that will strengthen manufacturing and create jobs in the Commonwealth. To learn more about the MBA’s many programs and services, visit www.mbausa.org.

In this edition of the Business Magazine, our 7th annual Made in PA issue, we’ll showcase the importance of manufacturing in the Keystone State, the many manufacturers

Manufacturing is Key to Our Future!

mbabizmag.com • MAY 2016

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COVER STORY | LOCAL PROFILE

7 ANNUAL MADE IN PA TH

SMALL, MIDSIZE MANUFACTURERS FOSTER TECHNOLOGY TRANSFORMATION Manufacturing is in a constant state of change as new emerging technologies take the industry by storm. Instead of resting on their laurels, many manufacturers have realized the benefits of infusing new technologies into their operations, particularly small and midsize firms. Experts say technology and innovation can have a significant impact on these companies — which often lack the resources and information to capitalize on such investments — as well as the major manufacturing states in which they operate. In the Keystone State, for example, many manufacturing companies have expanded to include the use of cuttingedge technology to improve products and processes. Today, the state is leading the way in one such subsector, additive manufacturing, which uses an innovative, costeffective 3-D printing process that is revolutionizing the industry across the Commonwealth. “It is extremely important for all manufacturers to innovate and use the latest technologies,” explains Donald Hester, president and chief executive officer of MAJR Products Corporation and 2016-2017 chairman of the Manufacturer & Business Association Board of Governors. “With most U.S. companies paying more per employee in medical costs alone than most Asian companies compensate their employees in total, there is a survival requirement that you need to either innovate or slowly go out of business.” Based in Saegertown, MAJR Products is a manufacturer of Electromagnetic Interference/Radio Frequency Interference (EMI/RFI) Shielding Products, with principal markets that include the computer and defense industries. In the last two years, the company has invested in its long-term growth by purchasing three CNC machines that have helped to reduce costs and improve quality throughout the operation. “Without these investments in newer cutting capabilities,” says Hester, “we would have seen a slowing of larger quantity orders and a reduction in those customers

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MAY 2016 • mbabizmag.com

who need quicker turnaround times and customized prototyping of products.”

Strategic Planning

Viking Plastics, headquartered in Corry, has prospered over the past 40 years with its expertise in injecting molding and assembly. But its investment in new technology is based on strategic planning. “Technology covers many aspects of the organization,” states Engineering Manager Shawn Gross. “It’s not just a piece of equipment that people traditionally think of as the main investment.” Behind the scenes, Viking Plastics has made investments in ERP/MRP and various software and hardware upgrades. This, they say, offers better data for making better decisions. “Back office upgrades are rarely ‘sexy’ but help our organization operate at world-class levels,” notes Gross. Traditional areas of spending, such as the purchase of injection molding machines and automation, have helped Viking become leaner, which means higher throughputs, improved quality, lower energy consumption and more value-added operations. Viking also has upgraded its material handling system to take advantage of the latest controls and pump technology. “This offers not only improvements in current machine operation, but also the ability to upgrade and grow,” says Gross. In addition, “The implementation of cavity pressure and machine controls technology is delivering improved cycles and quality. These efforts are all initiatives that support our main strategic plan goals.” Another local manufacturer that recognizes the role technology can play in its operation is Better Baked Foods. With locations in Erie and North East, Pennsylvania, and nearby Westfield, New York, the national contract manufacturer produces frozen bread-based products for companies such as Kroger, Wegmans, Aldi, Schwan’s, Kraft Heinz, Kellogg’s, General Mills and Con Agra Foods.


Joe Pacinelli, president and chief operating officer, says the investment in technology and innovation is “very important” to U.S. manufacturers overall and especially Better Baked Foods’ operations, which employs 400 associates companywide. “We exist in a world that has seen automobile design and launch go from 24 to 18 months to less than one year. Products today are designed faster, tested via social media faster, launched faster and die a faster death due to the technology held by both the producer and the consumer,” he says. “In our business, the food industry, we must pay attention to the changing eating trends of the consumer, respond with products that match those trends faster, then be able to change again with the next trend. If you cannot, you become dated quickly.” Better Baked, for example, conducts an annual review of its processes to see what activities can be enhanced with technology. “What is the payback, what do we gain, how does it improve food safety, how restrictive do we become through the automation? These are just a few questions we ask ourselves,” says Pacinelli. Ridg-U-Rak, Inc., one of the largest pallet rack storage manufacturers in North America, finds advancements in technology strategically necessary in order to develop new solutions in its markets to improve operational efficiency. “If you don’t keep improving your manufacturing by embracing new technologies or innovate thinking, your competition will,” remarks President and CEO John Pellegrino Sr., P.E. of the North East-based company. “Just because you do a process one way today doesn’t mean it’s the best way to do it tomorrow.” At Ridg-U-Rak, technology is woven into all aspects of its manufacturing operation. The company has invested heavily in computer system upgrades for increased processing capability and storage, as well as accounting. Software upgrades now allow the company to enter customer orders into a system using

EDI (electronic data interchange). This gives Ridg-U-Rak faster visibility of its customers’ needs, which provides valuable information for planning and scheduling orders. Other improvements include new loading fixtures to reduce fatigue in loading Ridg-U-Rak’s paintline; ln-line tube welding that eliminates the manual welding process for beam sections; powder coat technology to improve paint usage efficiency and improve finish quality; and, a new bracing design for structural pallet rack to reduce product costs, among others. “We have been upgrading our manufacturing processes with modern, quality, computer-controlled equipment and have also been upgrading our existing quality equipment,” notes Pellegrino. “As an added benefit to these connections, we are able to provide real-time graphical information on machine operations on any computer. This information can also be collected in logs for troubleshooting, quality control and for ongoing constant improvement.”

Technology and Training

Those in the manufacturing industry understand that technology is a tool, not an answer; the real effectiveness of such resources most often requires an investment in people. At Viking Plastics, “keeping people educated about the latest technology, providing training opportunities, encouraging creativity, developing proprietary solutions, thinking outside the box and developing a culture of engagement are allowing Viking to take full advantage of all aspects of the business,” says Gross. “You can purchase the latest technology, but if you don’t couple that with educated, engaged people, the true value of the technology is not fully realized.” Better Baked Foods echoes this statement. “These skilled workers are not being replaced with technology but rather are needed to utilize the technology,” says Pacinelli. Yet, experts agree, with such technology in place, there are many more opportunities for Pennsylvania manufacturers to grow and prosper. “While we will grow,” Hester insists, “this growth will probably not be in the larger corporations but in those small to medium-size local companies that positioned themselves to compete in a worldwide market.”

mbabizmag.com • MAY 2016

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SPOTLIGHT Q&A| EMPLOYMENT

Why Employers Should Explore The Veteran’s Initiative Today, there are nearly 1 million unemployed military veterans in the United States, according to the House Committee on Veteran’s Affairs. For some veteran groups, the Department of Labor reports, unemployment is more than 20-percent higher than the national average. How are businesses still struggling to find good talent when it appears to be abundant? Here, Northwest Commission Executive Director Jill Foys speaks about the recently launched Veteran’s Initiative. Please explain what the Northwest Commission is and the services it provides. The Northwest Commission is an Oil Citybased, public, nonprofit regional resource for economic and business development, as well as community development and planning. The Commission is dedicated to sustaining economic vitality and growth in the northwest Pennsylvania region by fostering local, state and federal partnerships across public and private sector lines. The Commission offers business and economic development programs such as government contracting, business financing and international marketing assistance. We also provide community development and planning services such as transportation and technology assistance to municipal governments, school districts and nonprofit organizations to help communities stay progressive. These services are offered to Clarion, Crawford, Erie, Forest, Lawrence, Mercer, Venango and Warren counties. One of the Northwest Commission’s newest programs is its Veteran’s Initiative. Tell us what it is and how the program works. The Northwest Commission has contracted with RecruitMilitary, a military-to-civilian recruitment firm staffed by veterans to assist veterans and their spouses in their search for employment. Employers in the Northwest Commission service area have

access to post unlimited job openings on the RecruitMilitary job board when registering through the Northwest Commission. Typically, an employer would have to pay to use RecruitMilitary’s services, including posting open positions to the job board, but the Commission has made this service available for free. RecruitMilitary is free of charge to veterans and their spouses to use. The goal of the initiative is to help address the workforce needs of employers in the region. Why did the Northwest Commission decide to launch this initiative? Many of the businesses in the region have expressed an interest in contracting with employment sites like RecruitMilitary but have found it to be cost prohibitive. The Northwest Commission’s Board of Directors has endorsed our role as contracting partner, giving employers the opportunity to use this service free of charge. Our hope is that this can become another tool in the workforce development toolbox to address the needs of our companies. We also anticipate it attracting businesses to the region because of its diversified workforce. What are the benefits to employers, veterans and their spouses? Many veterans have the transferable skills that our businesses require but have difficulty finding. Employers can now post jobs free of charge and recruit some of the top talent in America. These veterans bring

many soft skills that employers are looking for but also bring a magnitude of other skills, as well. Veterans often possess leadership qualities and management skills that many employers are seeking. Veterans and their spouses can display their skills and connect with employers looking to hire. How long will this program be made available? We launched this program on October 1, 2015 and the service will be offered until September 30, 2016. We encourage employers that are currently hiring or planning to hire in the future to register so we can continue to evaluate the program and make sure it best serves the needs of the employers in our eight-county region. How can employers learn more? Employers, veterans and spouses can learn more about RecruitMilitary at www. recruitmilitary.com. To learn more about the Commission’s Veteran’s Initiative, visit www.northwestpa.org/veterans-initiative/. They can also learn more about the initiative through the Commission’s social media channels on Facebook, Twitter, LinkedIn and YouTube. Interested individuals can also email the Commission at NWC@northwestpa.org.

mbabizmag.com • MAY 2016

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From PRECISION ...

to POWER ...

TIME Works Wonders. Time Machine Inc., established in 1981, is a premier Western PA contract machining company. Located in Polk, PA, Time Machine provides superior workmanship and innovative manufacturing solutions for the mining, oil and gas, nuclear power, construction, railroad, and industrial equipment markets—excelling in large, complex, high-volume machining applications. With 30+ state-of-the-art CNC turning and machining centers in a 60,000+ square foot facility, TMI is positioned to tackle the ever changing needs of its existing and growing customer base.

In November 2015, Time Machine acquired Skinner Power Systems, an Erie, PA based manufacturer of steam turbines, with a NW PA heritage dating back to 1868.

As one of only a handful of steam turbine manufacturers in the United States, Skinner Power Systems designs and fabricates single-stage turbines and electric generator packages for companies around the globe.

Moving forward as the new Time Machine Inc., we solidify our combined service and commitment to …

TIME TESTED and PROVEN SOLUTIONS ... right here in Pennsylvania.

1746 Pittsburgh Road • Polk, PA 16342 • TEL: 814-432-5281 • FAX: 814-432-4338 www.timemachinepa.com • www.skinnerpowersystems.net


Ridg-U-Rak Inc. for more than

70

years! History

At the end of WWII, there was a growing need to modernize and expand the nation’s warehousing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to fill those needs. Company after company was springing up, headed by owners who carved out a market share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding companies, investment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist.

“For myself, my family and our employees, manufacturing is a way of life; it creates familysustaining jobs, wealth and unlimited opportunities for our community to grow and prosper.” — John B. Pellegrino, Sr., President & CEO

Ridg-U-Rak was a minor player in those early years. Although limited in marketing vision and hampered by a lack of manufacturing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the operation celebrates more than 70 years of serving the storage rack market, Ridg-U-Rak is commonly acknowledged as a company built on Integrity and Service, guided by the able leadership of its president and CEO, John B. Pellegrino.

Capabilities

Ridg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with a production capacity of more than 100,000,000 pounds of finished steel products per week. It remains one of the largest storage rack manufacturers in North America and is still a family owned business. One of the key contributors to the company’s success has been the increased talent base of its staff, with the ability to completely manage large projects from design and code compliance, through manufacturing, to final installation and customer approval. Major capital investments in its manufacturing plants have been instrumental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality, but also the company’s environmental imprint by reducing its liquid paint usage. From recycling programs to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustainability expectations.

Products

Ridg-U-Rak provides an unlimited array of storage options. Whether deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can layout storage arrangements to meet a customer’s unique load, throughput and capacity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, 120 South Lake Street and offers replacement parts that interchange with competitive racks. North East, PA 16428 Many specialty storage options are Phone: 814/725-8751 or 866/479-7225 available, including a rack-supported crane system to store large dies Website: www.ridgurak.com and tools.


fast turnaround “ At Mayer Brothers, we used to work with the big banks… until they got too big, too corporate. Not a criticism, just the way it is. But when decisions had to go out of town through seven layers of management and two layers of approvals, our banker was handcuffed and it simply became too slow for us. “ We’re now with Marquette. They’re local like us. They’ve been here as long as we have, more than a hundred years like us, and most important, they’re able to turn around fast like us. “ Marquette empowers their staff to make fast decisions, and that empowers us.”

John H. Laver, IV, Vice President

MAYER BROTHERS CONSTRUCTION COMPANY

Banking approvals in days, not weeks. Support you can expect when the unexpected happens. People who understand opportunities are fleeting and make yours a priority. Business bankers who don’t define success between the hours of 9-5 any more than you do. Fast turnaround. It’s a difference you can expect when your decision is made locally, by the area’s only hometown-headquartered bank.

Be Mpowered.™

The Hometown Bank with the Hometown Touch


CO M PAN Y PR O FIL E

A Moving Experience Some people are fans of the TV show “Dancing With The Stars.” They love to watch the dancers move gracefully across the floor, the men lifting the women high into the air and then gently returning them to the floor. Every move is calculated; every transition is smooth and seemingly flawless. The dancers move with such fluidity that their actions appear almost effortless; yet, beneath these graceful performances is raw power under total control. This is the result of hard work and dedication, coupled with a passion for perfection. The finished product is “a moving experience.”

Gavin Hedderick, President and Owner

Believe-it-or-not, those who have watched ROG’S INC. professionals move machinery have made similar statements. “It’s like watching a ballet!” Well, maybe not a ballet exactly, but the sentiment remains the same — the ease in which ROG’S operators move machinery is something to behold. It is truly “a moving experience.” With seemingly little effort, large machines are lifted from a truck and lowered gently to the ground, displaying the skill of the operator and the power of the equipment — raw power under total control. Then, with the fluidity of a ballet, the machines are carried or skated through the building, often encountering obstacles and narrow passageways, but the crew doesn’t miss a beat. To the delight and fascination of those watching, every move is calculated, every transition is smooth and every potential hazard avoided. It is “a moving experience.” Psychologists say that moving is one of the most stressful events in life, whether it’s a family moving across town or a manufacturing facility moving dozens of machines within a plant; either way, there is a degree of anxiety that surrounds the event, and it behooves those who are moving to hire those who are knowledgeable in all aspects of moving, so as to turn a potentially stressful event into “a moving experience.” ROG’S INC. has been in the rigging and crane business since 1957, and is the area’s premier rigging and crane service, offering 167,000 square feet of indoor warehousing/storage through its warehousing division Hedderick Properties. The company also has traditional and specialized forklifts with capacities to 80,000 pounds, hydraulic cranes with capacities up to 100 tons, and experienced OSHAcertified riggers and crane operators. The next time you want to move a machine or an entire plant, don’t just settle for “any” rigger, call ROG’S INC. — for “a moving experience!”

ROG’S, INC. & Hedderick Properties 327 East 18th Street Erie, PA 16503 814/453-6781 (ROG’S) & 814/456-1076 (Hedderick Properties) www.rogsinc.com

mbabizmag.com • MAY 2016

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Protecting Technology Across the Globe Great Lakes, specializing in precision sheet metal fabrication, manufactures indoor and outdoor enclosures to house electronic equipment for a variety of industries. Sophisticated resources also allow us to provide custom metal solutions to hundreds of companies throughout the world, especially to those located in Northwest Pennsylvania. Give us a call or visit us on the web to learn how we can help design and manufacture a solution for you.

EDINBORO, PENNSYLVANIA - CORRY, PENNSYLVANIA - RENO, NEVADA - NAPLES, FLORIDA - SZÉKESFEHÉRVÁR, HUNGARY - DUNSHAUGHLIN, CO. MEATH, IRELAND

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MAY 2016 • mbabizmag.com

1.866.TRY.GLCC

• WeRackYourWorld.com


HEALTH MATTERS | KEY RESOURCES

Make Your EAP a Trusted Resource in Your Workplace help with these subjects and it makes sense to realize that some of these problems are bigger than anyone can handle alone. It’s not a stigma to go for help, but rather a wise choice. There is no need for an employee to tell anyone — boss, HR official or work colleague — if he or she wants to utilize EAP services. Companies provide an EAP phone number and an employee can call confidentially and make an appointment. Because EAPs operate independently of an employer, they are often flexible about when and where they can hold sessions. It could be over the phone, at a therapist’s office or even at the worksite. How EAPs Provide Value: 1. By leveraging the value of an organization’s workforce

James Kinville is a senior director at LifeSolutions, an EAP that is part of the UPMC Insurance Services Division. LifeSolutions’ Erie office is located at 100 State Street, Suite 450. Employee assistance programs (EAPs) have a long history of success in helping employers and employees tackle some complicated and difficult problems. EAPs can trace their beginnings back to 1917 and have been a part of many company benefit programs since the 1960s and 1970s. And, yet, for many employees, EAPs remain an underused resource. The reasons are many, with employees and employers both responsible. Getting the word out to employees that EAPs are a valuable resource that is available to them is what really matters. Interestingly, one of the biggest reasons for resistance to EAPs is that many employees do not believe that EAPs are truly confidential.

2. By addressing the cost of doing business

This comes from a fundamental lack of understanding of how EAPs operate. For an employer, it is imperative that employees are continually educated about how an EAP works. That includes expressing the fact that an EAP is absolutely confidential. EAPs do not report back to the employer after meeting with an employee. Time spent with an EAP is not part of an employee’s work record. That kind of understanding is needed for an employee to look to an EAP as a trusted resource. Another misconception, which is still prevalent in the workplace, is the stigma attached to reaching out for help in this manner. In particular, male employees may struggle with this. What an employer needs to explain is that everyone at some time or other has had on- and off-the-job problems of a similar nature and getting help to deal with these kinds of issues is a smart thing to do. Consider the range of things that EAPs handle: financial problems, marital and family issues, cancer, stress-related illnesses, caregiving for parents, substance abuse, workplace conflicts, depression and more. It makes sense to turn to a professional for

3. By helping an organization to mitigate its business risks It is essential that employers understand that EAPs can enhance an organization’s performance, its culture and its business success. EAPs should be a key component of an employer strategy to increase employee engagement and improve productivity, morale and workplace harmony. In deciding which EAP to choose, employers need to select one that can optimize its value to a company’s culture and workforce to ensure the achievement of business objectives. Employers should weigh an EAP’s experience and expertise in the field, the credentials of the EAP’s staff, the EAP’s level of responsiveness and accessibility, its ability to integrate with other key benefit providers, and whether it can tailor a plan design to fit a company’s specific needs. For information about increasing engagement and productivity in the workforce and how LifeSolutions can leverage the value of your company’s investment in human capital, visit http://www.lifesolutionsforyou.com.

mbabizmag.com • MAY 2016

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25 YEARS

AS YOUR SOURCE FOR NATURAL GAS Since 1991, National Fuel Resources, Inc. (NFR) has been supplying the manufacturing community with a cost effective source of natural gas. NFR recognizes the importance of a strong manufacturing base in our community. We have been a long time natural gas supplier to the manufacturing community here in Western Pennsylvania. We pride ourselves in being a long term supplier. NFR’s flexibility, experience and dedication provide the most competitive and direct prices to our clients. And this is what makes us uniquely qualified to manage the natural gas needs of any business. Our strategic mix of capacity, storage, and wholesale activity all blend to provide our clients with reliable service and direct access to the product. We are the supplier; we are your direct source, no unnecessary layers of cost. We take pride in our business reputation. We are committed to our clients and look forward to being a part of the continued growth of our area’s manufacturing community.

(814) 825-1891 | 349 E. Grandview Blvd, Erie, PA 16504


LEGAL BRIEF | UPDATE

Environmental Penalties: When Will They Stop Growing? tank, pipeline or source container into the environment has ended, and/or that each day the contaminants remain in the subsurface soil and passively enter groundwater and/or surface water constitutes an “ongoing or continuing” violation.

Bob Gandley has been representing businesses, municipalities, municipal authorities and individuals in a variety of environmental matters for over a decade. He concentrates his practice in the areas of regulatory compliance and permitting.

In recent years, we have seen a general trend of more severe penalties for environmental violations at the state and federal levels. Both the Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protection Agency (USEPA) have significantly increased penalties in environmental cases involving serious harm and/or large corporations. In the BP Horizon case, BP ultimately paid in excess of $5.5 billion in civil penalties. In the same incident, a non-operating business partner (Anadarko Petroleum) paid more than $150 million in civil penalties. In North Carolina, Duke Power paid approximately $75 million in civil penalties associated with a coal ash impoundment release into a local river.

Commonwealth Cases The same trend is happening in Pennsylvania with numerous multimilliondollar penalties imposed by the PADEP. To date, most of the largest penalties have been imposed against operators in the oil and gas industry. In addition to creating an apprehensive business climate generally, the pursuit of larger civil penalties also has led to some aggressive agency interpretation of existing laws and penalty provisions. The clearest example is the recent application of civil penalties for “ongoing discharges” in violation of Sections 301, 307(a) and 401 of the Pennsylvania Clean Streams Law (CSL). In several instances, PADEP has actively taken the position that civil penalties may be assessed for the passive migration of contaminants into the environment after an initial discharge from the impoundment,

In a series of cases between EQT Production Company and PADEP, the two sides are battling over the legality of PADEP’s position. In May 2012, EQT Production notified PADEP that a lined underground impoundment, containing well drilling wastewater, was leaking into the subsurface. Twelve days later, EQT had completely emptied the impoundment of such water and sludge. EQT then entered into the formal Act 2/Land Recycling Act voluntary cleanup process and began remediating the affected soil and groundwater. PADEP proposed settling the matter in May 2014 for a civil penalty of $1.27 million, including approximately $900,000 for alleged continuing violations under the Clean Streams Law. EQT declined to settle and convinced the Pennsylvania Supreme Court that it is entitled to immediate review of the legality of PADEP’s interpretation of the law by the Pennsylvania Commonwealth Court. Concurrently, in October 2014, PADEP filed a Complaint for Civil Penalties against EQT with the Pennsylvania Environmental Hearing Board (EHB), seeking more than $4.5 million in penalties plus ongoing penalties of up to $10,000 per day on a continuing basis. Lessons Learned The clear message to take away from all of these cases is that the government agencies are seeking larger penalties for environmental violations. As a result, permittees must exercise more diligence as the stakes are rising. In addition, permittees must be careful about just settling and paying for alleged violations where there may be a legitimate legal defense as repeat violations are consistently identified as a basis for larger penalties. For more information, contact Bob Gandley at 814/870-7661 or rgandley@mijb.com.

mbabizmag.com • MAY 2016

15


Let us do your

2016 marks 170 years in business for Ho For the past few years the focus is to continu “rigging” company to a professional rigging se training, equipment, crew, customer sat Safety and Training Some companies use OSHA trained or certified employees as a differentiator. As a general rule, OSHA does not certify your employees. OSHA sets the rules and it is up to each employer to “certify” that their staff is in compliance with applicable OSHA regulations. It’s not a differentiator, it’s a legal requirement for all employers. Hoffman Industrial goes beyond the standard, making a substantial investment in safety, quality and employees. Hoffman Industrial has certified their entire workforce by enrolling them in an industry specific Qualified Rigger off-site workshop offered by Columbus McKinnon Corporation, a leader in the US market. This also includes requiring employees to pass an independent certification exam offered by the Crane Institute of America Certification program. Certifications issued by CIC are nationally accredited by NCCA, the National Commission of Certifying Agencies, and are OSHA recognized and accepted by

state and municipal license boards across the United States. CIC certifications meet and exceed current and pending OSHA requirements for crane operators and rigging personnel. This comprehensive classroom and hands-on training includes rigging gear inspection/documentation, rigging & signal person training, properly selecting and using slings and rigging equipment, rigging guide and chart interpretation, sling tension calculations, load weight calculations, center of gravity determination and block and load drifting calculations.

“Safety must be the #1 priority. Successful companies understand that training is an investment that pays. Fewer accidents, higher morale, safe work environment and greater productivity are but a few of the dividend,” said Art Hammond, owner of Hoffman Industrial Co. So ask your rigging company: What safety and job specific training do you provide your employees beyond what is mandated by law?

Insurance To protect your investment, Hoffman Industrial far exceeds its competition in insurance levels. We are approved vendors for Fortune 500 companies because we meet their strict safety standards and insurance requirements. Hoffman Industrial is not self-insured and is proud to provide a Certificate of Insurance to all customers. Make certain your rigging company has adequate insurance. The rigging industry has specific insurance for the loading/unloading and transport of customer equipment. A company’s general liability insurance may not cover these claims. There are contractors and erectors that have forklifts and will perform rigging jobs as a side business that wrongly rely on their general liability insurance in rigging situations. Ask for a certification of insurance and make sure the policy financially covers your load. You do not want to get into a legal quagmire due to inadequate insurance or a rigging company that is self-insured.

Contact us: 814-452-2698 office@hoffmanindustrial.com www.hoffmanindustrial.com

“We are in a high stakes business, the machines we move are of significant value, often multi-million dollar assets. To cut corners by not carrying proper insurance or being self-insured is a risky proposition for a rigging business and their customers. You don’t want to get into a situation where if something happens, a rigging company can’t cover the value of your asset. You can’t throw caution to the wind believing every day is going to go perfect. That’s not confidence, that’s foolish business practice having your company and customers at risk. You shouldn’t settle for insufficient standards when choosing a rigging company.”

Art Hammond, Owner art@hoffmanindustrial.com

Dennis Apple, General Manager dennis@hoffmanindustrial.com

H s


r heavy lifting.

offman Industrial. Erie’s oldest company. ue differentiating Hoffman from the typical ervice firm. This includes investments in safety, tisfaction, quality, insurance and brand. Equipment Over the past three years, Hoffman Industrial has upgraded or added multiple pieces of equipment from work trucks to tilt beds to forklifts. Our most recent purchases were a Hoist FR 15/25 Series Forklift and a Gradall 534D6 Telehandler. We are proud to be the first and only rigging company in our market to purchase a hot-off-the production line, state of the art, 100% made in the USA forklift. The Hoist FR 15/25 forklift was recently introduced by Hoist in 2015. It is versatile and innovative with key features that you just don’t find in older model forklifts. The FR 15/25 has virtually the same footprint as a 15,000 lb. (7 ton) forklift but has a capacity of 25,000 lb (11 ton). It is compact enough to maneuver in confined and congested areas that other machines just can’t reach. This unit offers our operators and customers maximum performance and safety on the job. The innovative extendable counterweight frame is designed to provide stability at full capacity and extended load centers. Stackable counterweights and a removable hydraulic boom with collapsible boom stand allow ease of

transport, while quick-change forks optimize efficiency. The design has a lighter gross weight for easier loading and transportation to the job site. The Gradeall 534D6 Telehandler is a four-wheel-drive telescopic forklift with 6,000 lb. capacity and a reach of 42’. This allows our team to handle smaller, elevated jobs with speed and efficiency. “Rigging is an asset-intensive industry and you need to invest in this area to keep these assets efficient and reliable. You have to look at the market, what fits, what doesn’t, so these assets are working for you, they can’t be sitting around.” With strict maintenance standards and investment in new equipment Hoffman Industrial prides itself on the reliability and presentation of its equipment and crew. If you are not using Hoffman Industrial, what is the condition and appearance of your riggers equipment and crew? “Perception is reality…when you see our equipment heading down the road or on a job site, we want to make a positive impression…confidence that we will take care or your property the way we take care of ours.”

So why Hoffman Industrial? Let’s look at the facts: Differentiators

Hoffman Industrial

Other Rigging Companies

Experience

170 years and counting. Only business is rigging and machinery moving.

Less experience and/or core business not rigging and machinery moving.

Safety & Training

OSHA compliant PLUS Certified Riggers Certificate. OSHA compliant only.

Equipment & Crew

Recent investment in equipment. Maintained, reliable, professional look. You can see the difference.

What you see is what you get. Last equipment purchase? Equipment condition?

Insurance

Industry Specific Insurance. Industry leader. Provides Certificate of Insurance.

General liability that doesn’t cover the value of customer equipment. Low limits. Self-Insured.

Hoffman Industrial – We are professional riggers, movers and installers of industrial plants and equipment serving the Tri-State area. Projects range from single machines and equipment to complete facility relocations.


BUSINESS BUZZ | FIRM PROGRESS

MCINNES ROLLED RINGS COMPLETES MAJOR HEAT TREAT EXPANSION

Erie-based McInnes Rolled Rings, which produces quality seamless rolled rings and forged discs, has completed an $8 million, 25,000-square-foot expansion to its current manufacturing facility, company officials announced. The addition expands its present heat treat size capabilities by providing the ability to quench and temper forgings up to 144 inches in diameter. With separate high-agitation water and polymer quench tanks, the new state-of-the-art bay will significantly expand the daily tonnage capacity to ensure the fastest delivery times available in the industry. McInnes contracted with Can-Eng Furnaces Intl. Ltd. to design and install the most advanced technology to process large diameter products. The furnace and quench tank designs are augmented by a customized material handling system by Dango & Dienthal Hollerbach GmbH capable of processing loads up to 25 tons. The system’s fast transfer from furnace to quench tank provides optimal and repeatable process controls. “This new bay nearly doubles our quenched and tempered offerings to the power transmission industry and adds the ability to solution anneal large diameter stainless steel rings. Also, the addition of water quenching improves our ability to meet the high property demands of the custom flange markets,” said Sales & Marketing Vice President Shawn O’Brien. The expanded heat treat operation officially began service March 1. McInnes Rolled Rings, located at 1533 East 12th Street, started operations in 1992. The Erie facility remains the industry standard for productivity, cost control and speed. For more information, visit www.mcinnesrolledrings.com.

McInnes Rolled Rings has expanded its heat treat size capabilities with the recent expansion in Erie. The company is located at 1533 East 12th Street.

ERMP BEGINS IMPLEMENTING 2016 STRATEGIC ACTION PLAN

The Erie Regional Manufacturer Partnership (ERMP) held its first General Supporter Meeting recently at the Manufacturer & Business Association in Erie. The meeting brought together manufacturers, educators, workforce and economic development professionals, government officials, and other community leaders to shape and align collaborative efforts and begin kickoff of the 2016 action plan. The meeting built on the momentum from the Workforce Summit in the fall that brought together nearly 200 manufacturers, educators and community leaders to address the recent growth and declined pipeline of skilled manufacturers. The ideas generated at the summit enabled ERMP to finalize a strategic action plan for 2016. ERMP’s initial priorities will be addressing Manufacturing Readiness and WorkBased Learning and will be forming action teams for each of them. The Manufacturing Readiness Team will identify the skills needed to enter into a manufacturing career pathway and identify common assessments and processes to select candidates with the right fit. This team also will look at best practices to prepare individuals with the soft skills, basic skills, and technical skills necessary to enter into and progress up manufacturing career pathways. The Work-Based Learning Action Team will work to create more opportunities for hands-on learning — including job shadowing, internships, co-ops and apprenticeships and coordinate efforts at each step of the career pathway.

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MAY 2016 • mbabizmag.com

For more information or how to become a Supporter, visit www.industryneedsyou.com/ about-us/ermp/.

MICRO MOLD EMBARKS ON RENOVATION, INVESTS IN NEW MILLING CENTER

Micro Mold Co., Inc. & Plastikos Inc. announced a major renovation that is currently under way at Micro Mold. Once completed, a brand-new Mori-Seiki 5-axis CNC milling center will be installed coupled with a System 3R Workmaster robot to create a highly-automated and highly-efficient workcell. Company representatives say this capital investment will significantly reduce changeover time and resources, compared to a traditional 3-axis machining center. Moreover, this capital investment will further enhance Micro Mold’s hard-milling capabilities, which will also play a key role to further improve overall production efficiencies that will translate into reduced lead times for precision mold manufacturing services. Once completed, the new automated workcell will represent the single largest capital investment in the company’s history. Currently, Micro Mold is in the implementation stage of the project. The installation of the 5-axis CNC machining center and 3R robotic system is scheduled to be completed in June 2016. “Micro Mold views our investment in cutting-edge technology as critical to staying competitive in the precision mold building industry,” stated Ryan Katen, Micro Mold’s general manager.


MANUFACTURER & BUSINESS ASSOCIATION ANNOUNCES 2016-2017 BOARD The Manufacturer & Business Association (MBA) recently announced the appointment of its 2016-2017 Board of Governors. Donald Hester, president and chief executive officer of MAJR Products Corporation, has been named Board chairman. MAJR Products, incorporated in 1991, is an internationally recognized manufacturer of Electromagnetic Interference / Radio Frequency Interference (EMI/RFI) Shielding Products based in Saegertown. Hester started as sales manager at MAJR in 1993 and purchased the company along with investors in 1996. The Pittsburgh native and Vietnam veteran earned his bachelor’s degree in business administration from Clarion University of Pennsylvania and attended Gannon University’s MBA program. Hester is joined on the MBA’s Executive Committee by Vice Chairman Harry Eighmy, chief operating officer of American Turned Products; Treasurer Phil Katen, president of Plastikos; Secretary Mark Rose, director of Aerospace Operations & Supply Chain at LORD Corporation; Immediate Past Chairman Bill Hilbert Jr., president of Reddog Industries; and Nonmanufacturing Representative Jeff Plyler, president of Plyler Enterprises. New Board members who will serve threeyear terms include: Mike Mankosa, executive vice presidentGlobal Technology – Eriez Magnetics, a world authority in separation technologies, headquartered in Erie. Mankosa is responsible for 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.

PEOPLE BUZZ | ENDORSED

in mining and minerals engineering from Virginia Tech.

PDA SENIOR SOLUTION ARCHITECT FEATURED IN FOOD ENGINEERING MAGAZINE

Steve Jones, president of Ron Jones Hardwood Sales, Inc., a family owned and operated hardwood lumber business established in 1983 with sales office headquartered in Union City and lumber dry kiln facility in Franklin. The company specializes in the sales of premium Northern Appalachian kiln-dried hardwood grade lumber to customers in North America, Europe and Asia.

Process and Data Automation (PDA) Senior Solution Architect Scott McCausland was featured in the March issue of Food Engineering magazine. The article focuses on keeping control systems safe from cyber attacks and gathered expert advice from McCausland, as well as companies like Cisco Systems, Rockwell Automation and NexDefense.

Jones is also director of Export Sales and has more than 27 years of experience in the hardwood lumber industry. He earned his bachelor’s degree in business marketing from The Pennsylvania State University and is a graduate of the National Hardwood Lumber Association (NHLA) Inspection School. Jones currently serves as a board of director for the NHLA.

McCausland is known for his cybersecurity expertise and regularly sits on expert panels. To read the article, visit foodengineeringmag.com.

DEMARCO WACHTER & CO. NAMES NEW PARTNER The Erie-based accounting firm DeMarco Wachter & Co. recently announced that James E. Barr, MBA has been named a partner. Barr has been associated with the firm since April 2014 with a concentration working as an external controller for various clients. He is a graduate of Gannon University having earned both his bachelor of science in accounting and his MBA.

Scott Bonnell, owner of Bonnell’s Collision Center, a family owned and operated auto collision center. Bonnell, a veteran sprint car driver and longtime auto enthusiast, has spent the past 30 years building his shop’s reputation, and investing and fine-tuning his operation into one of northwest Pennsylvania’s largest and fastest-growing auto business empires.

Additionally, Julia Schroeck, a member of the firm’s accounting team has successfully completed all of the testing requirements for earning her certified public accountant designation. She is working toward her master in business administration with a focus in accounting. She earned her bachelor’s degree in accounting from Penn State Erie, The Behrend College.

Today, Bonnell’s Auto Group includes four major divisions — Collision Center, Auto Sales, Auto Glass, and Rod Shop — with locations based in both Erie and Fairview Township. Other members of the Board of Governors include: Andrew Foyle, president of H&H Machined Products Co.; Mike Weber, president and chief executive officer of Smith Provision Company; C. Bruce Kern II, president of Curtze Food Service; and Greg Sbrocco, general manager, Global Supply Chain – Services, GE Transportation.

The partners at DeMarco Wachter & Co. have more than 80 years of combined accounting experience in various areas of professional and service businesses, retail and wholesale trade, as well as numerous industries including, but not limited to, manufacturing, tool and die, trucking and warehousing.

Mankosa joined Eriez in 1997, beginning his career as the company’s technical director in the Erie-Division Research and Development Lab. He earned his doctorate

mbabizmag.com • APRIL 2016

19


Custom Group Industries... THE

Your Single Source

Everything from Large-Scale Metal Fabrications to Precision Machined Parts Large-Scale Fabrication & Machining Tolerance to .0005 inches Production Outsourcing Prototype Development High-Volume Parts Machining Complex Part Production Precision Machined Components

Custom Engineering • Venango Machine • Lamjen, Inc. www.CustomEng.com

www.VenangoMachine.com

www.Lamjen.com

A proud pArt of erie’s history

traditional Values & Cutting edge solutions Quality • service • Performance Family owned & oPerated

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MAY 2016 • mbabizmag.com

1425 W 8th Street Erie, PA 16502

Ph: 814.452.3691

reedsales@reedmfgco.com


Northwest Industrial Resource Center

Services •

Manufacturing Technology Acceleration

Advanced Manufacturing Apprentice Program

Continuous Improvement / Lean

CoreValue Assessments

Facilitated Management Services

Training and Events

Strategic Business Advisors

Who are we?

The Northwest Industrial Resource Center (NWIRC) is part of the Hollings Manufacturing Extension Partnership (MEP) and one of seven MEP Centers in Pennsylvania. Since 1988, MEP has been committed to strengthening U.S. manufacturing, continually evolving to meet the changing needs of manufacturers. The NWIRC strength is in its partnerships. In collaboration with experts at the national, state, and regional levels, the NWIRC helps manufacturers develop new products and customers, expand into global markets, reshore production, adopt new technology, and more.

What do we do?

The programs and services of NWIRC are geared and customized towards our regional manufacturers’ needs. Some of our key services include:

Erie and Warren

Manufacturing Technology Acceleration

(814) 923-3084 ebarthelmes@nwirc.org

Through a comprehensive and disciplined approach, manufacturers gain insight and evaluation of potential markets, including trends and new technology opportunities; introductions to new partners and/or suppliers; and researched technology solutions that support product development or solve process issues.

Ed Barthelmes

Advanced Manufacturing Apprentice Program (AMAP) The AMAP program matches qualified STEM majors from universities and technical schools with manufacturers’ technology-related projects. Our clients gain problem solving by technical talent; fresh innovative ideas; opportunity to evaluate potential full-time employee(s); and cost savings of up to 40% of apprentice wages via mini-grants.

Crawford, Mercer, Venango, Forest, and Clarion (814) 572-2077 shileman@nwirc.org

Susan Hileman Jefferson, Elk, Clearfield, Cameron, McKean, and Potter

Facilitiated Management Services NWIRC’s Strategic Business Advisors work one on one with manufacturers to identify opportunities for top-line growth, cost-savings, and bottom-line profits. Drawing on our national, state, and regional partner networks, we provide objective, creative, and quality solutions to help our clients improve the competitiveness of their businesses.

How do I access resources?

(814) 590-5202 tweible@nwirc.org

Tom Weible

Contact our Strategic Business Advisors located throughout the Northwest PA region to access NWIRC programs and services.

Knowledge Park • 5340 Fryling Road, Erie • (814) 898-6893

www.nwirc.org


ON THE HILL | SPENDING

The Real Crisis: R.I.P. PA Constitution 1968-2016 Lowman S. Henry is chairman and chief executive officer of the Lincoln Institute of Public Opinion Research, Inc., a nonprofit educational foundation based in Harrisburg. He is also host of the Lincoln Radio Journal, a weekly public affairs radio program syndicated on 79 Pennsylvania radio stations; and is host of American Radio Journal heard on 134 radio stations nationwide. Governor Tom Wolf has been in office for just over a year, but already we know historians will put the words “budget crisis” in their lead paragraph. But a far more ominous phrase may get top billing: “constitutional crisis.” Like his authoritarian counterpart in Washington, D.C., Governor Wolf is willing, and in fact, may prefer, to shred the constitutional separation of powers and enact by executive fiat that which the legislative branch is unwilling to do. The Commonwealth spent nearly ninth months without a completed state budget and that has spawned a growing debate over the limits of gubernatorial power. Days before Christmas, the legislature again passed a state budget. At that time, Governor Wolf signed off on most of the spending plan but “blue lined” or line item vetoed about a third of the items thus extending the budget crisis. Three months later, there was little resolution in sight, but the administration spent money anyway. This, many lawmakers argue, is a clear violation of the state constitution. The governor and his appointed state treasurer, Timothy Reese, argued there was a competing requirement for the state to keep certain agencies operating — especially those involved with ensuring public safety. But Treasurer Reese went far beyond that even authorizing a “loan” from the state treasury to House Democrats to pay their staff during the ongoing budget crisis. The public safety argument is nothing more than a distraction from the main issue, which is can a governor spend taxpayer dollars without explicit authorization from the General Assembly? It is a clear violation of the state constitution and one which will explode into a full-blown crisis, especially if the governor’s illicit spending extends outside the realm of public safety.

The budget, however, is not the only area in which Governor Wolf is willing to trample on legislative powers. He is trying to shutter the Public Employees Retirement Commission (PERC), an obscure state agency that earned his ire when it disagreed with his view of the pension crisis. The agency was created by an act of the General Assembly and signed into law by a previous governor. Lawmakers have sued in court to block executive dissolution of PERC pointing out it would take legislative action to do so. In early March, Governor Wolf again bypassed the General Assembly on the issue of the state’s minimum wage. The governor called for an increase in the state minimum wage, but the legislature refused to go along. So, he signed an executive order unilaterally raising the minimum wage paid to state employees to $10.15 per hour. The action applies only to state workers but will be extended to those companies doing business with the state. The minimum wage hike does not extend to private business. However, the impact on small businesses will be significant. Neal Lesher, legislative director for the National Federation of Independent Business-Pennsylvania, points out that the governor’s executive order effectively prevents many small businesses from entering the bidding process for state

contracts. “Some small businesses simply cannot afford to pay inexperienced, entry level workers that much more per hour,” Lesher explained. “This creates an unfair playing field that favors larger companies.” Having fully bought into the Obama “pen and phone” style of governing, there is no indication Governor Wolf plans to return to a constitutional model any time soon. His “budget address” to the legislature in February was hostile and confrontational and had the effect of solidifying Republican opposition, which at times had shown signs of wavering. It is clear crisis government is now the new normal in Harrisburg. On March 23, Governor Wolf finally buckled under pressure, saying he would allow the Republican-appropriations bill to become law without his signature. But with the deadline for adopting a budget for the next fiscal year less than two months away, the governor is content to act as if the legislative branch of government does not exist. This time, legislators will not sit idly by and be consigned to irrelevance. If the governor continues on his current course, the constitutional crisis will explode into the courts, and possibly even lead to impeachment proceedings.

See the new CEO/CFO Soundoff Blog CURRENT TOPIC: PRESERVING THE AMERICAN DREAM Erie Molded Plastics’ Tom Tredway talks about the Employer to Employee education program.

mbabizmag.com • MAY 2016

23


e.e. austin & son

Celebrating

Erie Veterans Stadium Erie, PA

110 Years

General Electric Refrigerator Building Erie, PA

of building northwest pennsylvania & southwest new york

Penn State University – Behrend Campus

Chautauqua Institution

It is with great pride and honor that we celebrate E.E. Austin & Son’s 110th anniversary. Companies that reach such a landmark universally share certain traits, such as honesty, integrity, and a consistently high level of service that meets their customers expectations. Our clients come back to us time and again for these very reasons and we are grateful for their support. Ready Mix Concrete Plant–Circa 1952

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MAY 2016 • mbabizmag.com

Erie City Water Authority – Chestnut Street Pumping Station

St. Bonaventure University – The William F. Walsh Science Center

it’s the austin difference

contractors & construction managers since 1906

www.eeaustin.com


BY THE NUMBERS

& growing

115

participating businesses

11,365 student experiences

41

school partners

148

available experiences

We need your participation! There is an opportunity for every employer in Erie County, large or small, to play a role in building tomorrow’s workforce. Join local employers, educators and non-profits as they work in partnership to provide career exploration opportunities to Erie County youth. Workplace tours Career day speakers Career fairs

www.CareerStreetErie.org jpontzer@CareerStreetErie.org 814.464.8614

Job shadowing Internships Mentoring

Help us pave the way for a skilled and engaged workforce.

Financing is available for working capital/lines of credit, equipment loans, and commercial real estate and construction.

Not getting the service you deserve from your current financial institution? At Erie FCU, you’re a valued member, not just a number. And it’s our business to keep your business growing.

Contact Nathan Crouch, Commercial Lender

(814) 825-2436 Ext. 1051

ncrouch@eriefcu.org www.eriefcu.org

Loans subject to credit approval. Membership eligibility required.

MBA Ad 1215v5.indd 1

12/4/15 4:10 PM

mbabizmag.com • MAY 2016

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AMERICAN TURNED PRODUCTS 7626 Klier Drive Fairview, PA 16415 Phone: 814/474-4200 Website: www.atpteam.com Specializes in contract precision machining of high volume complex parts for the automotive industry. BETTER BAKED FOODS 56 Smedley Street North East, PA 16428 Phone: 814/725-8778 Website: www.betterbaked.com Co-manufacturer of handheld, bread-based frozen food products for the schools, retail and club markets. C&J INDUSTRIES, INC. 760 Water Street Meadville, PA 16335 Phone: 814/282-4147 Website: www.cjindustries.com Plastic injection molding company that is ISO 13485 certified and FDA registered to produce plastic medical devices. ERIE PRESS SYSTEMS 1253 West 12th Street, PO Box 4061 Erie, PA 16512-4061 Phone: 814/455-3941 Website: www.eriepress.com Manufactures custom hydraulic and mechanical presses for forging, extrusion, stretch forming, compaction and metal forming. INDUSTRIAL SALES & MANFACTURING 2609 West 12th Street Erie, PA 16505 Phone: 814/833-9876 Website: www.ismerie.com Quality Contract Machining, Fabrication and Assembly for OEMs since 1967.

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MAY 2016 • mbabizmag.com

LORD CORPORATION 2455 Robison Road West Erie, PA 16509 Phone: 814/868-3180 Website: www.lord.com 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 90 years, LORD has worked in collaboration with its customers to provide innovative aerospace, defense, automotive and industrial solutions. MATRIC GROUP 2099 Hill City Road Seneca, PA 16346 Phone: 814/677-0716 Website: www.matric.com Provides electronic contract manufacturing services, contract design, cable and electromechanical assemblies. MFG TRAY COMPANY 6175 US Highway 6 Linesville, PA 16424 Phone: 814/683-4500 Website: www.mfgtray.com A leading manufacturer of high-strength, glassreinforced composite containers, trays, boxes, flats and totes. MICRO MOLD CO., INC. 4820 Pittsburgh Avenue Erie, PA 16509 Phone: 814/838-3404 Website: www.micromolderie.com Provides custom mold design and fabrication services along with plastics engineering support services to the medical device and electronics industries. PHB INCORPORATED 7900 West Ridge Road Fairview, Pa. 16415-0905 Phone: 814/474-5511 Website: www.phbcorp.com Manufacturing capabilities include zinc die casting, aluminum die casting, machining, plastic and rubber molding, tool & die, injection molding and product assembly.


SPECIAL SECTION | LISTINGS

Manufacturing accounts for $79 billion in economic impact across Pennsylvania and employs more than 569,000 people with an annual average compensation of $62,140. That’s more than 18 percent higher than the statewide average for all industries. Here are some of the companies proud to manufacture in the Keystone State: 1673-Manufacturers Ad_1117-Manufacturers Ad 11/13/13 4:36 PM Page 2

PLASTIKOS, INC. 8165 Hawthorne Drive Erie, PA 16509 Phone: 814/868-1656 Website: www.plastikoserie.com Provides custom mold design & fabrication services along with plastics engineering support services to the medical device and electronics industries.

TIME MACHINE, INC. 1746 Pittsburgh Road Polk, PA 16342 Phone: 814/432-5281 Website: www.timemachinepa.com Provides precision machining services and steamdriven power equipment. TONNARD MFG. CORP 715 Spring Street Corry, PA 126407 Phone: 814/664-7794 Website: www.tonnard.com Specializes in short and long run metal stamping, laser cutting and fabrication. The company is ISO 9001 and AS 9100 registered.

REDDOG INDUSTRIES, INC. 2012 East 33rd Street PROUD TO BE Erie, Pa. 16510 FAMILY-OWNED AND Phone: 814/898-4321 For more than 70 years, RIDG-U-RAK has been family-owned our products are Made in America. Through constant innovation, MADE IN and Website: www.reddog-erie.com process improvements and industry-leading customer care, we’ve one of the largest rack manufacturers in the nation AMERICA become Manufacturing include high-pressure producing in excess of 100,000,000 lbs. ofcapabilities rack per year. Now in our third generation, we remain just as committed to growth, FOR plastic injection molds; high-quality, aluminum our community and our employees. THREE die-cast dies; and specialized machining. Now, three generations strong, pictured above are Mark Pellegrino, Peter Bohrer, John B. Pellegrino Jr. & John B. Pellegrino Sr., PE

GENERATIONS

VAN AIR SYSTEMS 2950 Mechanic Street Lake City, PA 16426 Phone: 1-800-840-9906 Website: www.vanairsystems.com A family owned business that has been around since 1944. The company manufactures products for the treatment of compressed air and natural gas. Products include compressed air and natural gas dryers, absorbent and deliquescent desiccants, particulate and coalescing filters, automatic drains and after-coolers.

RIDG-U-RAK, INC. 120 South Lake Street Toll Free: 866-479-7225 • www.ridgurak.com North East, PA 16428 Phone: 814/725-8751 Website: www.ridgurak.com Designs and manufactures a full array of storage rack solutions. MADE IN AMERICA

THE PLASTEK GROUP 2425 West 23rd Street Erie, PA 16506 Phone: 814/878-4400 Website: www.plastekgroup.com Employs more than 1,600 employees worldwide in four different countries. The company is a lead Global Manufacturer in Injection Molding, Tool Design and Tool Building.

VIKING PLASTICS 1 Viking St. Corry, PA 16407 Phone: 814/664-8671 Website: www.vikingplastics.com Industry leader of injection molded components and assemblies for the automotive, HVAC and general industrial markets.

TECH MOLD PLASTICS 1045 French Street Meadville, PA 16335 Phone: 814/724-8222 Website: www.ttmp.com Tech specializes in high performance molding of engineered resins for complex applications.

WHIRLEY-DRINKWORKS! 618 Fourth Avenue Warren, PA 16365 Phone: 814/723-7600 Website: www.whirleydrinkworks.com Manufactures high-quality plastic reusable food and drink ware. Whirley-DrinkWorks! injection and blow molded products can be found in many convenience stores, amusement parks, zoos and restaurants.

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INDUSTRIES, INC.

ng Celebrati 70 Years Geared to Industry

With 5 locations in 4 Pennsylvania cities to serve you!

We would like to give special thanks to our employees, custormers and suppliers for helping us reach this anniversary! We are AS9100 and ISO/TS 16949 registered for machining, assembly and product testing. We are also Nadcap accredited, for both heat treating and materieals testing, and ISO/TS 16949 registered for heat treatment. We have an ISO 17025-accredited and GE S-400 recognized laboratory for testing of materials, mechanical failure, chemical and NDT services. Of course Modern is also ISO 9001 registered.

www.modernind.com/usa

Laboratories Division

Heat Treating Division

Complete Analytical & Testing Services

Complete Commercial Heat Treating Sevices

Products Division

Machining Division

Supplying High Quality Hydraulic Shocks and Work/Tool Holding Products

Contract Machining Division

Corporate Office

613 W 11th St - Erie, Pa 16501 - Ph: +1.814.455.8061 - Fax: +1.814.454.3090 - Email Us: sales@modernind.com

www.modernind.com/usa


HR CONNECTION | WORKPLACE TRENDS

REPORT: UNITED STATES TO CLAIM TOP SPOT IN MANUFACTURING COMPETITIVENESS

The United States is expected to be the most competitive manufacturing nation over the next five years, with the current leader China sliding into second position, according to the upcoming 2016 Global Manufacturing Competitiveness Index report from Deloitte Touche Tohmatsu Limited’s (Deloitte Global) Global Consumer & Industrial Products Industry group and the U.S. Council on Competitiveness (Council).

Health Insurance Update:

The prediction is based on an in-depth analysis of survey responses from more than 500 chief executive officers and senior leaders at manufacturing companies around the world.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

The ability of the United States to take the top spot may be largely due to the country’s investment in research, technology and innovation, which enhances the competitiveness of its industries and drives economic development, according to the study Advanced Technologies Initiative: Manufacturing & Innovation, a 2015 report also published by Deloitte Global and the Council.

FINALIZES OUT-OF-POCKET LIMITS FOR 2017 The Department of Health & Human Services (HHS) has finalized the 2017 out-of-pocket maximums of $7,150 for single coverage and $14,300 for family coverage. The limits are an increase from $6,850 for individuals and $13,700 per family in 2016. Effective for plan years beginning on or after January 1, 2014, the Affordable Care Act (ACA) imposes annual innetwork out-of-pocket (OOP) maximums on the amount that an enrollee in a nongrandfathered health plan, including self-insured and large group health plans, must pay for essential health benefits (EHB) through cost-sharing. The OOP maximum includes the annual deductible and any in-network costsharing obligations members have after the deductible is met. Premiums, pre-authorization penalties and OOP expenses associated with out-ofnetwork benefits are not required to be included in the OOP maximums.

Employers offering high-deductible health plans should also be mindful of the embedded OOP maximum requirement. Beginning in 2016, all nongrandfathered health plans, whether self-funded or fully insured, must apply an embedded OOP maximum to each individual enrolled in family coverage if the plan’s family OOP maximum exceeds the ACA’s OOP limit for self-only coverage (for example, $7,150 for 2017).

SURVEY: MANUFACTURERS NEED STRONG INTELLECTUAL PROPERTY PROTECTIONS The National Association of Manufacturers (NAM) issued the first quarter results of its 2016 Manufacturers’ Outlook Survey. In addition to the manufacturing outlook, the survey polled NAM members about key intellectual property issues.

The ACA-required embedded OOP maximum is a new and often confusing concept for employers offering a highdeductible health plan (HDHP). This is because prior to ACA, HDHPs commonly imposed one overall family OOP limit on family coverage without an underlying individual OOP maximum for each covered family member. HDHPs must now comply with the IRS deductible and OOP parameters for self-only and family coverage in addition to ACA’s OOP embedded single limit requirement.

In the survey, respondents were asked about measures in state legislatures across the country aimed at requiring manufacturers to turn over highly sensitive operational information, such as production and marketing and research costs that support new and innovative product development. Survey findings include the following: • More than 83 percent of respondents would consider these actions a threat to their competitiveness. • More importantly, 46.7 percent felt that these measures would force them to curtail investments in R&D of now-proprietary technologies and products.

Melissa Damico is manager of Client Services for the Manufacturer & Business Association Insurance Agency (MBAIA) and a licensed insurance agent. Contact her at 814/833-3200, 800/815-2660 or mdamico@mbausa.org.

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How much can you save with the MBA

WORKERS’ COMPENSATION Program?

Call Doug Loesel or Patrick Wachter and find out.

814-833-5433 www.LSinsure.com

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MAY 2016 • mbabizmag.com


US – UK – Brazil – Mexico Family Owned since 1956 by the Prischak Family, Plastek is a Global Plastics Manufacturer with locations in Erie, PA – Hamlet, NC – Mansfield, United Kingdom – Indaiatuba Brazil – Queretaro, Mexico. Employing more than 1,700 people worldwide, Plastek manufactures a wide variety of Cosmetics, Laundry Care, Home Care, Personal Care, Food & Beverage and Pharmaceutical Products around the world.

(Front Row): Dennis Prischak – President/CEO, Joseph Prischak - Chairman, Douglas Prischak – VP of Global Tooling & Engineering (Back Row): Daniel Prischak – VP of Manufacturing, Donald Prischak - Sales

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We are a specialized Occupational Medicine practice that focuses solely on workplace health. Workplace wellness, OSHA monitoring programs, FAA and DOT physicals, Merchant Marine, USCG, Law Enforcement, and Firefighter physicals, workplace drug and alcohol testing, Medical Review Officer/TPA/ Consortium services, Evidence-Based Workers’ Compensation care using nationally recognized guidelines, Independent Medical File Reviews, Independent Medical Examinations/Impairment Rating Evaluations, Travel Consultations, and more.

Our focus is on quality of care and preventive health services. Because Workplace Health Matters. 3939 West Ridge Road Suite A200 Erie, PA 16506 (814) 835-8935 | fax: (814) 835-8408 www.occumedica.com

4506 West 12th Street Erie, PA 16505

Ph: 814-838-9184 Fax: 814-838-6060

Wettekin Electronics Automation for Industry

Motor Controls, Automation, Circuit Board Design and Assembly Your Distributor for Industrial Electrical Components Parts and Service Center for Van Air Systems

www.wettekinelectronics.com

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MAY 2016 • mbabizmag.com

sales@wettekinelectronics.com


LEGAL Q&A | GET ANSWERS WHAT IS THE PURPOSE OF OSHA’S STAND-DOWN EVENT?

The purpose of the Stand-Down, set for May 2-6, is to raise awareness of fall hazards in the workplace. Fatalities caused by falls from elevation continue to be a leading cause of death for construction workers, accounting for 337 of the 874 construction fatalities recorded in 2014. The annual Safety Stand-Down is part of OSHA’s ongoing fall prevention campaign that was started several years ago in conjunction with the National Institute for Occupational Safety and Health, NIOSH’s National Occupational Research Agenda and The Center for Construction Research and Training.

Effective Safety Programs:

Companies conduct a Safety Stand-Down by stopping work and providing a focused toolbox talk on a safety topic such as ladder safety, fall protection equipment or scaffolds. The meeting provides information to workers about hazards, protective methods, and the company’s safety policies, goals and expectations. For more information, see www.osha.gov.

WHAT IS SAFT AND WHAT DOES IT MEAN TO YOU? SafT Integration was started to help support the roles of the safety and human resource managers because oftentimes they become involved in so many daily job duties that controlling them all becomes difficult. The SafT team helps manage and remove some of the tasks assigned to the safety and human resource departments with custom programs and hands-on involvement keeping in mind that every safety program is at a different stage of development.

UNDER THE OSHA LAW, WHAT RESPONSIBILITIES DO I HAVE AS AN EMPLOYER?

SafT stands for the four elements that lay the foundation for an effective safety program: • “S” represents the supervisor. They need to be trained in safety regulations, how to be a safety advocate/leader, understand how safety impacts the company and its operating cost. The main focus is to get employees home safe every day.

This is a short summary of some of the key employer responsibilities: • Provide a workplace free from serious recognized hazards and comply with standards, rules and regulations issued under the OSH Act.

• “A” represents accountability and how to build it into the safety program by increased involvement in safety inspections, incident investigations, addressing employee concerns, and building the willingness to accept responsibility into the safety culture. Accountability must be ingrained at all levels of the process and throughout all locations and levels of the organization.

• Examine workplace conditions to make sure they conform to applicable OSHA standards.

• “F” is frequency of incidents, including the severity and frequency of supervisors, departments and companywide. It also includes understanding the effects of unsafe work conditions on employee behavior and related production inefficiencies. Frequency is a control point that needs to be discussed and investigated as the safety program grows and changes; it is always a moving target that must be controlled.

• Make sure employees have and use safe tools and equipment and properly maintain this equipment. • Provide medical examinations and training when required by OSHA standards. .

• “T” stands for training and lots of it. Supervisors need to be involved in handson safety training in their departments. Then, as time progresses and the safety program grows, cross-training and knowledge increases companywide for a more rapid improvement. Put it all together and SafT means lines of increased profitability, a safer workplace, reduced turnover and increased employee engagement, plus much more.

Greg Safran, ASC is a safety instructor at the Manufacturer & Business Association and is the chief SafT officer and founder of SafT Integration Consulting, LLC. He has more than 20 years’ experience in helping employers build safe work environments. For more information, visit www.mbausa.org.

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Are you a small manufacturer who needs funding to develop a new product or process? Ben Franklin Technology Partners has been “INVESTING IN INNOVATION” for more than 30 Years.

Call 814-898-6650

Or see our website at www.cnp.benfranklin.org

www.cnp.BenFranklin.org

Knowledge Park 5340 Fryling Road Suite 202 Erie, PA 16510

BOLDLY MADE

IN PENNSYLVANIA

Accurate

www.areatool.com Reliable

CAPABILITIES

Efficient

Why Choose Area Tool?

• Close Tolerances

• CNC Mill

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• CNC Swiss

• Surface Grind

• RAM EDM

• On Time Delivery

• Unsurpassed Quality • Dependability • Professionalism

• Inspection

181 BALDWIN ST. PARK RD. MEADVILLE, PA 16335

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MAY 2016 • mbabizmag.com

Advanced

VISIT US @ DESIGN2PART June 15th & 16th - Raleigh, NC October 12th & 13th - Akron, OH November 9th & 10th - Nashville, TN

PHONE (814) 724-3166 FAX (814) 337-0710


EVENTS & EXTRAS | NETWORKING AND MORE

The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events, see the Association’s website, www.mbausa.org. Pennsylvania Attorney General Eugene DePasquale shares his views on municipal pension reform, during the MBA’s March legislative luncheon in Erie.

EVENTS David Kozak, Ph.D., professor of Public Policy at Gannon University and director of Leadership Erie, provides a thought-provoking analysis of what it really takes to win the presidency and which candidates will most likely win each party’s nomination, during the Association’s January Eggs ‘n’ Issues briefing in Erie.

Congressmen Mike Kelly (R-3rd District) and Glenn Thompson (R-5th District) were the guest speakers at a legislative luncheon held January 21 at the Manufacturer & Business Association’s Conference Center.

Erie County Executive Kathy Dahlkemper addresses the state of the county, during the Association’s February breakfast briefing.

ESSENTIAL TOOLS Attorneys at Knox McLaughlin Gornall & Sennett, P.C. understand the unique challenges faced by manufacturers. From small proprietorships to large corporations and from sintered metals to pet nutrition, we have worked with all types of businesses and in many industries. We can provide the legal tools essential to your success. Rely on Knox Law to find innovative solutions to your problems and add value to your business.

• • • • • •

Business, Tax & Succession Planning Employee Benefits Finance & Securities Intellectual Property & Technology Mergers, Acquisitions & Divestitures Labor & Employment

• • • • • •

Commercial, Contract & Complex Litigation Real Estate Acquisition Environmental Law Zoning & Land Use Workers’ Compensation Product Liability Defense

Knox McLaughlin Gornall & Sennett, P.C. Erie, PA | Jamestown, NY | North East, PA 814-459-2800 | www.kmgslaw.com

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Your financial world is changing. No matter what your business demands, Northwest delivers.


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May 2016 Business Magazine