UNLOCKING THE POWER OF BLUE OCEAN STRATEGY 1. Do you find your business struggling with squeezed margins and loss of market share? 2. Have your customer strategies stopped yielding results? 3. Is your company focused more on cost cutting, quality control, and brand management at the expense of growth, innovation, and brand creation? 4. Is commoditization of offerings a frequent worry?
If you answered “Yes”, it is likely that your business is in a “bloody red ocean” of competition, price wars and reduced margins. Competitive and customer-driven strategies have yielded marginal results at best.
Published in 41 languages ● More than 5 million copies sold Blue Ocean Strategy Introduction: Join us for a two-hour executive awareness briefing to learn how your business can swim out of the red ocean of competition! Learn the basic concepts, tools and methodologies behind Blue Ocean Strategy/Value Innovation and the building blocks you need to differentiate your business’s products and services in today’s competitive marketplace. Discover the Blue Ocean Strategy approach to creating new demand and highly profitable growth based on value innovation: the simultaneous pursuit of differentiation and low costs. -
The strategic logic of Blue Ocean Strategy o What are the underlying principles? o How does Blue Ocean Strategy methodology unlock creativity? o How do I know that it is right for my organization?
The “toolbox” behind reconstruction of market boundaries o What are the analytical tools and frameworks behind BOS? o How does the “four step” process maximize opportunities while minimizing risks?
Please select the date and location you wish to attend: _____ September 29, 2009: Manufacturer & Business Association Conference Center, Erie, Pa. 4 Easy Ways to Register: _____ October 15, 2009: Hampton Inn and Conference Center, Cranberry, Pa. Time: 8 to 10 a.m.
Price: Free to Members Only
Online: www.mbausa.org Fax:
Phone: 814/833-3200 800/815-2660 Mail:
City, State, Zip:
2171 West 38th Street Erie, Pa. 16508
BUSINESS M A G A Z I N E Manufacturer & Business Association
The Maleno Family-to-Family Fund A Specialized Approach to Reaching Your Realty, Development and Property Management Destinations
Giving Back: One Home at a Time
VOLUME XXII, NUMBER 9
Dedicated to Giving Your Business the Lowest Possible Energy Costs in Pennsylvania.
Blue Ocean Strategy Center
The battle against soaring energy prices continues across Pennsylvania. Anticipating substantial increases in electricity costs, coupled with the fluctuation of natural gas prices, companies of every size and type are seeking alternative energy suppliers. On behalf of you, our members, the Manufacturer & Business Association has established the Employers’ Energy Alliance of Pennsylvania, Inc. (EEAPA). By leveraging our significant buying power and eliminating broker commissions and marketing costs, we are able to buy electricity and natural gas in large quantities at wholesale prices – and pass that savings directly on to you. Call Dave Bell at 814/8333200 to learn more about how !"#$%&#'()*''%+,)%&*)*-.%/$"0%.1('%*2+(.()3%4$"3$,05
Employers’ Energy Alliance of Pennsylvania, Inc.
Learn how to compete in the digit@l economy Low cost training for a high value approach to marketing your business
2009 Upcoming Lineup 8/20 9/03 9/03 10/08 10/20 10/21 10/29 11/12 12/03
Professional training taught by eMarketing experts.
Comprehensive Guide to Successful Email Marketing Fundamental Guide to Successful Search Engine Optimization Fundamental Guide to Developing a Search Engine Advertising Strategy The Executive’s Guide to the Online Marketing Channel Half-Day Business and Half-Day Nonprofit Workshop on Go-to-Market Social Media Strategy Nonprofit Partnership Conference Content Management Systems: Not All Are Created Equal Comprehensive Guide to Successful Email Marketing Google Analytics Workshop
Wilkes-Barre Erie Erie Erie Erie Erie Webinar Meadville TBD
To learn more visit www.emarketinglearningcenter.org or call 814 898-6500 eBizITPAt,OPXMFEHF1BSLt'SZMJOH3PBE 4VJUFt&SJF 1"
Photo by Heather Neckers
Blue Ocean Strategy Center
5 / Health Matters
3 / Spotlight
How cost-effective worksite wellness programs can keep your employees healthy while improving your bottom line.
McInnes Rolled Rings President and CEO Timothy Hunter talks about his appointment to the Manufacturer & Business Association Board of Governors and the state of manufacturing locally.
ROSE K. GANTNER, ED.D., NCC
9 / Financial Adviser
The key steps to successful exit planning. JEFFREY E. BEACH, CPA
27 / Legal Brief Buyers beware: Bulk Sales crackdown. J.W. ALBERSTADT, JR.
31 / Information Tech Why SIP Trunking is a big deal for smallbusiness phone service. JEFF LYTLE
14 / Maleno Family- to-Family Fund Learn why the Maleno family, who own and operate Maleno Development, the lead builder on the “Extreme Makeover: Home Edition” project, created a fund to help similar projects in the Erie area and how area businesses and other organizations have shown their support.
21 / On the Hill Association Government Affairs Specialist Ashley Borchilo explains the current status of federal “card check” legislation and why the Association strongly opposes any compromise.
BMUA SG IANZEI SN SE
r & Business Asso
SEPT EMBE R
29 / Association Golf Classic
See photo coverage of the 11th annual Association Golf Classic Tour held at Whispering Woods in Erie.
DEPARTMENTS > 4 / Business Buzz 11 / The Network 18 / HR Connection
The Maleno ily Fund am Family-to-F Home at a Time h to Reaching Your A Specialized Approac tions y Management Destina
and Propert ng Back: One Givi
21 / On the Hill 24 / Legal Q&A 32 / People Buzz
Read this edition of the Business Magazine online at www.mbausa.org!
September 2009 > www.mbausa.org > 1
SPOTLIGHT > by Karen Torres Timothy Hunter is the president and CEO of McInnes Rolled Rings, a manufacturer of forged seamless rolled rings, headquartered in Erie, Pennsylvania, and one of the newest members of the Manufacturer & Business Association Board of Governors. Hunter recently spoke with the Business Magazine about his Board appointment and the state of manufacturing locally.
Tell us about your company. Our company makes forged steel seamless rolled rings primarily for industrial bearing and gearing applications used in construction, mining, agriculture, aerospace, power generation and oil field equipment. Our plant on East 12th Street features the most advanced technology available utilizing a 63-ton Radial Axial Ring Rolling Machine equipped with a state-of-the-art computer-aided rolling system. What role do you feel that manufacturing plays in our economy? Manufacturing forms the foundation for our domestic economy. We continue to hear how critical the consumer will be to the recovery from the current recession. In order for the consumer to play this role, they need to have confidence that good family sustaining jobs are available. Manufacturing companies provide these types of jobs. How would you describe the current state of manufacturing locally? Local manufacturing businesses did see a better 2008 than the national economy. However, global financial markets froze during the fourth quarter of 2008 resulting in a severe liquidity crisis that very few, if any, manufacturing businesses can go through unscathed. The bright spot is that a lot of local manufacturers were coming off some very good years and balance sheets are much healthier heading into this slowdown than past recessions. In your opinion, what are the major hurdles facing businesses today? The global financial crisis has put a halt to most major financing activity that would tend to lead the world economy out of recession. We, or our customers, sell product throughout North America, Eastern and Western Europe and Asia. It’s very slow everywhere. The “Wall Street” banking bailout needed to occur in order to unfreeze the system and get capital flowing again. Other external hurdles facing long-term business prospects will be the potential for more deficit spending, higher taxes, and a tendency to over-regulate businesses as a result of the events leading up to the financial crisis. Internal challenges will be the continuing need to transform our businesses, especially manufacturers, to a template where the work force is comprised of stakeholders who have a vested interest in success and productivity enhancement. What are your thoughts on being appointed to the Board of Governors? The Association has had a tremendous impact on local business and the community for over 100 years. It’s an honor to be asked to serve with a group of Board members and staff who positively impact thousands of people in our community every year. What do you hope to bring to the Board of Governors during your first term? All any new Board member can do is lend a hand in helping the Association continue on its current successful track. I bring a small and mid-sized business perspective to the Board that is representative of a large cross-section of the Association. In addition, I’m coming off a three-year term on our North American Forging Industry Association Board, most recently serving as president; so, this has given me a broader perspective on issues facing business. The Association recently introduced Blue Ocean Strategy and the Employers’ Energy Alliance of Pennsylvania, Inc. as its newest member services. Why should an Association member take advantage of these offerings? These programs are just another example of the Association anticipating the needs of the business community and keeping members on the cutting edge of issues that will affect them. I would encourage any member to get more deeply involved in these services. Is there anything else you would like to add? I’ve been in manufacturing for almost 25 years and contrary to what many people see from the national media, manufacturing is alive and well. It’s so easy to focus on the failures in any sector of the economy; however, deep within the manufacturing sector are entrepreneurs at work everyday developing businesses that will be the future backbone of our economy. The Association focuses on creating an environment that gives these people their best opportunity for success.
VOL. X XII, NO. 9 SEPTEMBER 2009 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 Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway
Editor in Chief Ralph Pontillo email@example.com Executive Editor John Krahe firstname.lastname@example.org Managing Editor & Karen Torres Senior Writer email@example.com Contributing J.W. Alberstadt, Jr. Writers Jeffrey E. Beach, CPA Jessica Crocker Rose K. Gantner, Ed.D., NCC Patrick J. Mondi Jeff Lytle Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 firstname.lastname@example.org Photography Bruce Bennett Bruce Bennett Photography 814/899-1161 Rachel Lusky Puremotif Photography www.puremotif.com Heather Neckers Heather Neckers Photography www.neckersphoto.com Michael Gallagher Photography www.mikegallagher.tv Design, Production Printing Concepts Inc. & Printing email@example.com
Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2009 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.
September 2009 > www.mbausa.org > 3
Business Buzz SEA GLASS FESTIVAL TO BE HELD OCTOBER 17 AND 18 IN ERIE The 2009 North American Sea Glass Festival is coming to Erie’s Bayfront Convention Center in October, and organizers say they already are planning for a large turnout. “Relish is proud to be involved in bringing the fourth annual North American Sea Glass Festival here to Erie on October 17 and 18 at the Bayfront Convention Center,” said Jennifer Reed of Relish Inc., a beach glass jewelry studio and gallery located in Millcreek Township. “We are expecting thousands of visitors hailing from all over the globe. It’s such a great opportunity to show off our city for the gem that it is to this rapidly growing industry.” The festival features informative lectures about the mystery of sea glass and its origins; vendors from across the globe; and shopping that includes a variety of genres such as photography, jewelry, stained glass, notecards, and more. Guests also are invited to bring in their most interesting shards, have them
DEPARTMENTS > Contact: Jessica Crocker
identified and share them with other sea glass enthusiasts. The festival runs from 10 a.m. to 6 p.m. Saturday, October 17 and 10 a.m. to 5 p.m. Sunday, October 18. Admission is $5; tickets will be sold at the door. For more information, visit www.seaglassassociation.org ERIE INSURANCE EARNS J.D. POWER AND ASSOCIATES AWARD Erie Insurance has earned J.D. Power and Associates’ award for “Highest in Customer Satisfaction with the Auto Insurance Shopping Experience.” This award recognizes the top rankings in the J.D. Power and Associates 2009 Insurance Shopping StudySM, which evaluates the experience of customers purchasing a new auto insurance policy. “This award reflects the continued commitment of Erie Insurance employees and agents to being above all in service,” said Terry Cavanaugh, president and CEO. “That commitment is deeply rooted in our 84-year history and our culture.”
For more information, visit www.erieinsurance.com. GREAT LAKES HOME HEALTHCARE SERVICES ACHIEVES ACCREDITATION Great Lakes Home Healthcare Services (GLHHS) recently received its American Board for Certification (ABC) in Orthotics, Prosthetics and Pedorthics. The ABC accreditation demonstrates that GLHHS has complied with the requirements for the highest standards of competent and ethical practices for the provision of these services. Among the services/products this recognition includes are: diabetes shoes, orthopaedic bracing and mastectomy prosthetics. The staff includes certified pedorthists, certified orthotic fitters and certified mastectomy fitters. With locations in Erie, Meadville and Bradford, Pennsylvania, and Jamestown and Fredonia, New York, GLHHS is a provider of home medical equipment, infusion therapy, respiratory/home oxygen services and nutrition, as well as diabetes education and supplies.
I made the Gary Marz, Vice President, Commercial Lending Gary and his 35 years of experience have joined Northwest Savings Bank’s Commercial Lending team in Erie County. After more than a decade of employment with National City and PNC, Gary looks forward to working as a valued member of Northwest’s team of Retail, Mortgage, Commercial Lending and Wealth Management professionals.
20 Erie County locations to serve you. Northwest Direct: 1-877-672-5678 t www.northwestsavingsbank.com 4 < www.mbausa.org < September 2009
EDITORIAL > by Rose K. Gantner, Ed.D., NCC
Keep Your Employees Healthy With a Cost-Effective Worksite Wellness Program In recent years, worksite wellness programs have become popular because most employers believe it is clearly better to prevent health problems than to treat them later on. That is true both from a health perspective as well as from a cost-effective one. Wellness programs are attractive to employers because they have the potential to decrease absenteeism, reduce medical claim costs and improve employee productivity, recruitment and retention. Other advantages determined in studies include greater employee morale and an improved public perception of the company. In terms of cost saving, only worksite wellness programs have the long-term potential to keep employees healthy and, therefore, reduce medical costs. Effective wellness programs have demonstrated a return on investment ranging from $3 for every $1 spent, to $5 for every $1 spent usually after a 24month timeline. In order for wellness programs to be effective with employees, there are certain elements that need to be present. These include: • Organizational support of a healthy work culture • Supporting leadership commitment to personal change • Increasing awareness of wellness initiatives • Rewards/incentives • Outcome measures and how programs made an impact Worksite wellness programs make sense because, increasingly, Americans are spending more of their waking hours at work. That means that many employees are in danger of not getting enough physical exercise or proper nutrition to maintain a healthy lifestyle.
What are the usual components of a wellness program?
• Programs are offered online, onsite, telephonically and in print;
• Assessments/health risk questionnaire and biometric screenings
• Your health insurer provider can supply wellness programs, information and support; and
• Employee interest survey
• There are multi-program opportunities based on employees’ interest and motivation.
• Wellness education and campaigns • Lifestyle programs that focus on physical activity, nutrition, weight management, stress and resiliency and tobacco cessation Wellness programs can be attractive to employers because they have the potential to prevent modifiable lifestyle behaviors while reducing total health management costs. However, in order to be most effective, employee wellness programs need to provide information about wellness initiatives, support for personal, behavioral lifestyle changes and the promotion of healthy work environment policies. A study by NASA found that for nonexercising office workers, productivity decreased by 50 percent during the final two hours of the workday. However, for exercisers, the work level remains consistent all day. Enhancing the economic benefit of wellness programs is possible if there are factors in place such as: enthusiastic and financial support from senior management, coaching and followup measures, a number of program options, and clear incentives for healthy lifestyle changes. Studies have shown that the impact of wellness programs is greater when incentives are provided because they increase participation. However, employees should be rewarded for participating according to the rules, not for reaching any specific goals. Employee participation can be encouraged when:
Basic questions an employer should ask before starting a wellness program: 1. How committed is senior management to having a health promotion program that aligns with company strategies? 2. Are you setting realistic goals and objectives for the program based on budgetary constraints and staff resources? 3. Do you have champions within the company to support a wellness committee? 4. How will you measure participation, engagement and completion rates? 5. Are expectations realistic for multiyear program offerings? For more information, visit www.upmchealthplan.com. Rose K. Gantner is senior director, Sales and Product Development, for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division – which includes 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.
September 2009 > www.mbausa.org > 5
You have to start somewhere. JHB Records Management knows the thought of digitizing all your files can be intimidating. But it won’t be long until Electronic Document Management becomes a business necessity. Unfortunately, many companies—and their files—are left in the dark because they don’t know where to begin. Since 1991, we have been helping companies get started with records retention and document management. Let us help you take the first steps toward a more organized, efficient, productive way of doing business. Call us at (814) 456-5377, and we’ll show you where to start. www.jhbrecordsmgt.com
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 • MacDonaldIllig.com • 814-870-7600
MacDonald Illig Jones & Britton LLP
Yoder Drilling & Geothermal, Inc.
Company PROFILE Yoder Drilling & Geothermal, Inc. 997 SR 93 Sugarcreek, OH 44681 Phone: 1-800-242-4342 Web site: www.yodergeothermal.com
Yoder Geothermal, itâ€™s owners and employees are excited about geothermal energy!!
More than 5,000 loops installed throughout Ohio, West Virginia and Pennsylvania
We were happy and proud to provide the exterior loop of the geothermal heating and cooling system for the Ward familyâ€™s new â€œgreen homeâ€? in Erie, Pa.
Five full-time, specially engineered, vertical, geothermal drilling rigs
Knowledgeable technical staff to answer your questions
WHY Geothermal: â€˘ Realize up to 40-percent savings on your monthly heating and cooling bills with this green energy alternative. â€˘
Federal tax credit of 30 percent available for installing a geothermal system in a new or existing home.
WHY YODER GEOTHERMAL: â€˘ A leader in the geothermal industry for more than 18 years
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