April 2013 Business Magazine

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A New Electricity Alliance: Manufacturer & Business Association, EEA-PA and NRG Business Solutions

Since its inception, Employers’ Energy Alliance of Pennsylvania (EEA-PA) has supported our members’ energy needs. The latest example comes with our new alliance with NRG Business Solutions. Many of our members wanted a variety of energy services to choose from that we alone couldn’t provide. An alliance with NRG Business Solutions allows us to provide this range – from fully fixed to fully variable and everything in between. The choice is yours and we’re here to help you. You will also receive the same level of service you’ve come to expect from the Manufacturer & Business Association (MBA) and EEA-PA while significantly expanding our experience and expertise in servicing your electricity needs with NRG Business Solutions. Trust and expertise … a combination you can continue to count on.

Contact us today to learn how we can help meet your electricity needs.

Chuck Jenkins 814.833.3200 cjenkins@mbausa.org

NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645


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

VOLUME XXVI, NUMBER 4

APRIL 2013

Chris Rodgers, Executive Director

Regional Asset Ready to Soar With $83 Million Improvement / Page 16


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April 2013

EDITORIAL >

FEATURES >

How managed care can help you improve your company’s workers’ compensation program. DEBORAH MEHALIK

The Team PA Foundation explains why manufacturers believe implementation of the Common Core Standards will help better prepare students for the work force.

11 / Legal Brief

5 / Risking It All

Transportation and trademarks: Why you don’t have very far to look to prove your customers or goods are transporting across state lines.

Sue Sutto, president and owner of Sue Sutto REALTORS Inc. in Erie, talks about the risks and rewards of going into business for herself.

DAVID S. WILLOUGHBY

16 / Erie International Airport/ Tom Ridge Field

9 / Health Matters

13 / Aging & Wellness A closer look at the benefits of paid non-medical care for working caregivers. DIANNE CUNNINGHAM

15 / Business Management Why business owners should consider the “magical 5 valuation multiple” in determining the value of their business. JOE BIONE AND STEVE FINDLAY

< 24/ SPECIAL SECTION

Go WILD! Discover the networking and educational opportunities offered at the sixth annual Women in Leadership Development Conference set for Friday, May 10, at the Bayfront Convention Center in Erie.

DEPARTMENTS > 6 / Business Buzz 22 / HR Connection

2 / For What It’s Worth

Chris Rodgers, executive director of the Erie International Airport/Tom Ridge Field, and Frank Stefano, president of the Erie Regional Airport Authority Board, talk about the safety and economic benefits of the $83 million Runway 6-24 Improvement Program — the largest capital improvement program in the Authority’s history.

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19 / On the Hill Guest columnist Matt Brouillette weighs in on Pennsylvania’s political paradigm of the Big Government Party vs. the Taxpayer Party.

20 / Company Profile Learn how Logistics Plus, a global management company headquartered in Erie, is connecting to the world through its fast-growing offices in Turkey.

28 / HR Q&A 32 / Events 36 / People Buzz

Read on the Go! For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! April 2013 > www.mbabizmag.com > 1


For What It’s Worth VOL. X X VI, NO. 4 APRIL 2013 Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor

Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Mark Hanaway Donald Hester Timothy Hunter Paul Kenny J. Gordon Naughton Dennis Prischak Sue Sutto

Manufacturers Back Common Core Standards

Ralph Pontillo rpontillo@mbausa.org

This article was reprinted with permission from the Team PA Foundation. It was originally published on www.teampa.com on February 14, 2013.

John Krahe jkrahe@mbausa.org

Managing Editor & Senior Writer

Karen Torres ktorres@mbausa.org

Contributing Writers

Joe Bione Dianne Cunningham Steve Findlay Deborah Mehalik David S. Willoughby

Feature Photography

Meghan Badolato R. Frank Photography 4320 Miller Avenue Erie, PA rob@rfrankphotography.com Erie International Airport/ Tom Ridge Field

Advertising Sales

Design, Production & Printing

Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net

ON THE COVER: Chris Rodgers, executive director of the Erie International Airport/Tom Ridge Field, explains how the Greater Erie region, including businesses and business travelers, will benefit from the completion of the airport’s runway improvement project. For full story, see page 16. 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 2013 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.

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Blue Ocean Strategy Center

Manufacturers believe implementation of the Common Core Standards will help prepare students to either enter the work force or college upon graduation from high school. It’s a simple math question asked of job applicants at Erie-based Sunburst Electronics: How many degrees are in half a circle? Few jobseekers get that question right, ensuring that they won’t get a job with the electronics manufacturer. It’s a process that’s both upsetting and frightening to company President and Chief Executive Officer John Cline. “It’s very, very clear that our current educational system is not satisfying the needs of all the students,” Cline said. “If it is not satisfying their needs, then we’re getting employees who are not adequately educated or trained to move forward in positions we have open today.” For far too many students, postsecondary remedial education is a dead end. About 40 percent of all students entering postsecondary education in recent years have required remedial courses prior to enrolling in credit-bearing courses. The problem is significant at all institutions but exceptionally dramatic at two-year colleges where about 60 percent of entering students require remediation, according to Complete College America. That’s why Cline and 4,500 other manufacturers who are part of the Manufacturer & Business Association have endorsed the internationally benchmarked Common Core Standards, whose adoption was strongly supported by Team Pennsylvania Foundation in 2010. Cline said the standards are designed to be robust and focus on the relevant skills needed to be prepared for 21st century employment. It will give teachers the tools they need to support students. He noted that Common Core emphasizes mastery of subject material before a student is advanced to a higher level. “The Common Core Standards teach mastery of every skill set,” Cline said. “The way school systems are set up today, they teach many different subjects over many different grades. The Common Core teaches mastery of one activity, and builds on that throughout the grade levels. It is about skills mastery.” Dale Deist, founder, Deist Industries, Inc., and Team PA board member, said the standards are a proven Best Practice and a common-sense approach to learning for our children. “I particularly like the focus of an educational approach that keys on a narrow scope of the basic subject, like math, until the student masters it before progressing to the next level, which builds on that foundational knowledge,” said Deist. Matt Zieger, president and chief executive officer, Team PA, said 46 states and territories have adopted the standards, which will improve consistency in education in public schools and lead to a betterprepared work force. “These standards are more rigorous and provide deeper knowledge of content in math and English language arts,” said Zieger. “They have been developed by education experts with the involvement of business leaders to ensure that they will lead to a job-ready work force.” Many jobseekers at Sunburst Electronics have the basic skills needed to manufacture product at the Erie-based company. Cline sees consistent standards benefiting both businesses and employees. “We are a more mobile society and as employees move from one place to another, or a company moves a worker from one location to another, the standards have a lot of value because it levels the playing


EDITORIAL > Contact: Karen Torres field for the children of those employees,” Cline said. “Right now, there is no consistency on what a fourth grader needs to know whether that child is in Arkansas or Massachusetts.” The Pennsylvania Department of Education (PDE) is in the midst of a five-year plan to implement and align the standards with the Keystone Exams and PSSA tests. As PDE works toward full implementation of the standards, businessmen like Cline and Deist believe that public awareness must be elevated and full support given to the standards by industry leaders and parents. This is especially important because as rigor is raised in the classroom there will be an initial dip in student test scores. “This is going to be a long transition, in my opinion, and it needs communities, business leaders and parents to stand behind the standards and show their support to the schools that this is the right thing to do,” Cline said. “This transition will be a difficult challenge, but it is a challenge that we must take on.” “The challenge will now be to support the strong implementation of the Common Core standards and for Pennsylvania and local communities to not take their eyes off the prize that the Common Core offers,” said Deist. “We, not just business leaders, but school boards and PTAs (Parent Teacher Associations) need to be involved with annual performance rankings and we also need to be aware that patience is required. Rome was not built overnight.” Both also agree that the key to understanding and supporting the standards begins with educating parents about how the Common Core is an asset in the education of their children. “How do we help?” said Deist. “Capable citizens must choose to run for school boards and be involved in PTA. Parents must attend both of these meetings, where the plans and results are discussed and set in place. Parents who are involved in their student’s education are a powerful force, not to be underestimated.” “The question as we are implementing the standards is how we educate our employees who have children in the system as to what this is all about,” said Cline. “I am not sure what resources schools will need, but we will look to share it with Sunburst employees. We also need to make it known to our legislators that we support the standards. These are elements that have to happen. And the standards must be shared with students and their parents.” Cline added that society also stands to benefit from raising rigor in the classroom. He said it is frustrating to know the Northwest region of the state has one of the highest unemployment rates in the commonwealth because too many businesses have open positions that job applicants are not qualified to fill. “We have one of the highest poverty rates in Pennsylvania because we have so many people who are not employable,” Cline said. “If we had a higher employable base with the residents who are already here, then many of the societal problems we have would be solved.”

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New for 2013 Waldameer is giving a new look to the Park with the addition of the Music Express Zone. This zone includes the new Music Express thrill ride, an updated, relocated Scrambler and a new water fountain, both featuring colorful programmed LED lighting, plus a beautiful garden with large bronze sculpture.

Why have a picnic at Waldameer? • Excellent opportunity to get to know your employees and their families, and for them to get to know you. • Great way to celebrate your company’s anniversary or other milestones. • Perfect way to reward your employees for a job well done. • A picnic at Waldameer is incredibly easy to organize - because we do all the work!


EDITORIAL > by Karen Torres

Longtime Realtor Shares Risks, Rewards of Being Her Own Boss

EDITORIAL > by Ralph Pontillo

Risking It All

The Business Magazine’s “Risking It All” section highlights entrepreneurs who make sacrifices to build their businesses in our region. This month, we sat down with Sue Sutto, a member of the Association’s Board of Governors and president and owner of Sue Sutto REALTORS Inc. in Erie, to talk about the risks and rewards of going into business for herself. Like many successful business owners, Sue Sutto didn’t set out to be an entrepreneur. The former Villa Maria Academy history teacher got into the real estate business by happenstance when, after three years of teaching, she met an influential businesswoman by the name of Jane Theuerkauf, president of Jane Theuerkauf Realtor, who recruited Sutto to join her firm. “Initially, I was somewhat reluctant,” Sutto recalls. “It was a big step leaving something that was pretty much day to day and going into a business that was commission driven. But I did finally make the decision about a year after she offered me the position.”

Sue Sutto is the president and owner of Sue Sutto REALTORS Inc. She has approximately 40 years of experience in the local real estate market.

After working for the agency for approximately 15 years, and approaching her 40th birthday, Sutto felt it was time to make another career move — this time to go into business for herself. “It was a big deal, because at that stage in my life I was either going to continue being an agent for the rest of my career, or I was going to strike out on my own,” she says. Believing she would be successful and knowing she was ready for the responsibility that would come with being a business owner, Sutto got the support of her former employer and set out to start her own firm. With that, she opened Sue Sutto REALTORS Inc. in December of 1986. It wasn’t a big operation in the beginning, but Sutto had many decisions to make, from where she was going to locate her operation to hiring staff to help her get the business off the ground. Within a few years, Sutto found that she needed to expand from her leased office space to her current headquarters, located right next door on West 12th Street and Powell Avenue. She purchased the property in the spring of 1992, renovated it, and moved into the building that November.

Sue Sutto REALTORS has been in operation in the Erie area since 1986.

Since then, Sutto has experienced the many challenges and costs that come with operating a business, including the impact that stricter mortgage guidelines have had on her industry. Due to the tidal wave of mortgage fraud cases that unraveled in 2008 and 2009, these guidelines now change about every six months. “Ten or 12 years ago, it would take one piece of paper for an agreement of sale,” says Sutto. “Today, it’s 20 to 21 pages. We’ve seen tremendous interference from the legislature and regulations that stand in the way of trying to facilitate an agreement between a buyer and a seller.” Still, Sutto’s agency — with its nine full-time agents — is positioned to make each real estate sale a positive experience. “We’re involved with people who are making one of the biggest decisions in their lives — and one of the most expensive,” she says. “The agents are here to serve the public and because of the complexity of what is going on today, it is full-time dedication.”

The agency is headquartered at 3838 West 12th Street in Millcreek Township.

It’s that kind of commitment that Sutto believes future entrepreneurs need to have before they go into business for themselves. “If you are going to start a business, do it in a business that you know, or figure out a way that you can learn that business from somebody else,” she advises. “You need to have enough planning and the financial resources to cover yourself, because there may be a period of time when you don’t have the income that you expect and you’re funding the business yourself. And you have to have the stamina to do it.” “People often say, ‘You have your own business, you can do whatever you want.’ Well, no,” she continues. “It’s always your responsibility. It’s your name. It’s your business.” For Sutto, owning her own real estate agency has been extremely rewarding. “In the real estate business, you see instant gratification,” she says. “You’ve been working with someone who has been looking for their dream home for forever, and you’re a part of that.” For more information about Sue Sutto REALTORS Inc., visit www.suesutto.com. April 2013 > www.mbabizmag.com > 5


Business Buzz J.H. BENNETT MOVING & STORAGE CELEBRATES INDUSTRY RECOGNITION J.H. Bennett Moving & Storage, an agent of United Van Lines, celebrated its recent honor as the recipient of the 2012 United Van Lines President’s Quality Award, during a dinner held February 7 at the Bayfront Sheraton in Erie. The company had earned the 2012 award, which recognizes the top service achievement in the carrier’s U.S. family of affiliated moving agencies, From left: J J.H. Bennett Advisor J. Gordon during parent company UniGroup’s Naughton, United Van Lines CEO and UniGroup President Richard McClure, and J.H. Bennett annual convention in November in President Kent Mitchell in Erie. San Francisco. J.H. Bennett Advisor J. Gordon Naughton, President Kent Mitchell, company employees and contractors were joined by special guest United Van Lines CEO and UniGroup President Richard McClure at the event. J.H. Bennett, headquartered at 1705 Raspberry Street in Erie, has been in continual operation since 1914 and is one of Pennsylvania’s oldest moving companies. For more information, visit www.jhbennett-moving.com.

PLASTIKOS NAMED MANUFACTURING LEADERSHIP AWARD 100 WINNER Frost & Sullivan’s Manufacturing Council recently named Plastikos, Inc., an Erie-based custom high-precision injection molder, the winner of two Manufacturing Leadership 100 Awards. The Manufacturing Leadership 100 Award submissions are judged by an independent panel of industry experts to recognize innovative companies and individuals from around the globe. Plastikos was nominated for the ML 100 awards by one of its long-term business partners, IQMS, for consideration of two separate projects: Plastikos’ Automated Production Labeling and Tool Initiative, and Plastikos’ Environmental Sustainability Initiative; both project submissions won an award in the Operational Excellence and Sustainability categories respectively. “The entire Plastikos & Micro Mold team is truly honored to be recognized along with the other industry-leading

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organizations as a 2013 Manufacturing Leadership 100 Award winner,” said Philip Katen, president and general manager of Plastikos. “Our team strives to target continuous improvement opportunities that will have a significant positive impact for our customers, our employees, our local community, and ultimately our company. I believe that these two award-winning projects highlight that element of our culture.” For more information, visit www.plastikoserie.com. FIRST NATIONAL BANK EARNS GREENWICH EXCELLENCE AWARDS First National Bank, the largest affiliate of F.N.B. Corporation, recently was recognized as a winner of several 2012 Greenwich Excellence in Banking Awards. Less than six percent of the 750 banks evaluated nationwide are recognized by Greenwich Associates, a leading researchbased strategy management firm. First National Bank was recognized as a National Winner for Overall Client

Satisfaction in both Small Business Banking and Middle Market Banking. First National Bank also was recognized as a Regional Winner of the 2012 Greenwich Excellence Awards for Small Business Banking and Middle Market Banking in two categories: Overall Satisfaction in the Northeast and Overall Satisfaction in the Northeast for Treasury Management. For more information, visit www.fnb-online.com. BOSTWICK DESIGN ACQUIRES RECTENWALD ARCHITECTS Cleveland-based firm Bostwick Design Partnership has acquired Rectenwald Architects Inc., one of Pennsylvania’s leading architecture firms, based in Erie. “Blending our expertise builds on the foundations each of us has established and enables us to offer clients an expanded breadth and depth of service, while strengthening our regional presence throughout Ohio, Pennsylvania, and New York,” said Robert Bostwick, AIA. Bostwick is continuing his role as president and director of Design of the combined firm, and Ross Rectenwald is now a principal, joining the management team as an officer of the firm. The combined team, with headquarters in Cleveland and an office in Erie, now includes more than 40 architects, project leaders, interior designers and support staff. For more information, visit www.bostwickdesign.com. ENTRIES SOUGHT FOR BIG IDEA BUSINESS PLAN CONTEST Ben Franklin Technology Partners of Central and Northern PA (BFTP) is seeking entries for its annual BIG IDEA Business Plan Contest. A grand prize of $35,000 will be awarded to one entrepreneur or tech-based startup to further develop and grow a business in northwest Pennsylvania. Applicants must: • Be located in one of the seven


DEPARTMENTS > Contact: Karen Torres

• •

counties served by the Erie office: Erie, Clarion, Crawford, Mercer, Venango, Warren, or Forest; Have a new, marketable techbusiness idea that includes a commercialization plan; Have no significant sales if a product has already been developed; Have less than 50 employees if a company has been formed; and Never received previous BFTP funding.

Examples of applicable industry sectors include, but are not limited to: green technologies; alternative energy; advanced manufacturing; medical devices, information technology; and software.

ERIE BAYFRONT CONVENTION CENTER

MAY 10, 2013

Deadline for applications is 5 p.m. April 19, 2013.

For more information, visit bigidea.benfranklin.org or call 814/989-6650 to speak to the team at the Erie office. NORTH CENTRAL SIGHT SERVICE RECEIVES 2012 EMPLOYMENT GROWTH AWARD North Central Sight Services, Inc., headquartered in Williamsport, Pennsylvania, was honored by National Industries for the Blind (NIB) with the 2012 Employment Growth Award, which recognizes efforts to increase employment retention, growth and upward mobility for people who are blind. The award honors North Central Sight Services, Inc. for its success and commitment to increasing economic independence for people who are blind. “We are proud to provide employment opportunities for people who are blind in our region,” said President

and Chief Executive Officer Robert Garrett. “Our team members who are blind are talented, dedicated and loyal employees. We are honored to serve as an example in the community of the capabilities of people who are blind.” The 2012 Employment Growth Award recipients are awarded cash payments from a fund created to recognize and encourage NIB associated nonprofit agencies that grow or sustain employment for people who are blind. Emphasis is also placed on efforts to increase upward mobility in the workplace and job placements. North Central Sight Services, Inc. is one of 91 nonprofit agencies throughout the country associated with NIB, the nation’s largest employment resource for people who are blind. For more information, visit www.ncsight.org.

6th Annual

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Tickets Going Fast!

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April 2013 > www.mbabizmag.com > 7


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Call today at 814-898-6893. We’ll show you how to target, attract, and win new customers. We manufacture success.

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For more information, contact: Erin Heath, 814-590-1219 s Cameron, Clarion, Clearfield, Elk, Jefferson, McKean & Potter Counties Susan Hileman, 814-572-2077 s Crawford, Forest, Mercer & Venango Counties Gerry Schneggenberger, 814-898-6891 s Erie & Warren Counties


Health Matters

EDITORIAL > By Deborah Mehalik

Managed Care Can Improve Workers’ Compensation The goal of any workers’ compensation program is to return injured workers to a healthy and productive lifestyle. However, the cost can be high for all involved.

The primary benefit in a comprehensive managed care approach is that it is structured to produce a win-win situation for all stakeholders involved.

For an injured worker, there is the recovery from the injury itself, the anxiety felt regarding the workers’ compensation system, and the potential loss of the identity that he or she enjoys through work. For the employer and insurer, there are the escalating costs and complexities connected with managing claims, as well as the temporary or permanent loss of valuable employees.

Containing Costs Managed care can help to contain costs in several ways: • By identifying medical providers who understand the importance of safe, early return to work, and how it directly impacts lost-time days and indemnity costs. • By using medical expertise that can assist with causality determinations and appropriateness of treatment and also ensure correct acceptance and payment for both. • By having a clear understanding of injury drivers to assist safety personnel in making the necessary corrections or changes in an effort to avoid similar claims. • By understanding cost drivers in programs, such as pharmacy and physical therapy, that allows for an evaluation of the gap between current and best practices and gives valuable insight when determining with which vendor to partner. • By having knowledge of bill repricing and the network(s) being utilized on the employer/ insured’s behalf to maximizing preferential pricing and allow for continued evaluation of provider performance.

For all parties, the expertise and oversight that can only be provided by a comprehensive managed care approach would be beneficial. Starting with an overall beginning-toend strategy, the traditional managed care approach can be expanded to specifically target the extremely vulnerable points in the workers’ compensation system for all parties involved. How a Managed Care Approach Impacts a Company’s Workers’ Compensation Program Managed care must be expanded to include concepts such as accessing medical expertise throughout the life of the claim, identifying quality providers who have expertise in workers’ compensation, aggressively identifying early, safe return to work potential, developing an in-depth understanding of cost containment strategies, and measuring programmatic cost drivers through the use of data analytics. An important new concept to the managed care world is the integration of health and wellness resources at the time of a work injury to positively impact the employees’ overall risk profile.

transfer), and medical and indemnity costs. Accessing sophisticated data analytics allows benchmarking of current programmatic performance and, when well structured, shows value or areas of cost shifting when new strategies are introduced. What an Employee Gains From a Managed Care Approach A managed care approach that focuses on quality care and outcomes benefits the employee by utilizing a best-of-the-best approach to link employees to superior providers and treatment platforms. By identifying best practices in areas such as pharmacy management and physical therapy, the employee has seamless access to the prescribed regime that will maximize the recovery effort. To learn more about UPMC WorkPartners workers’ compensation programs, visit http://www. upmchealthplan.com/ar_2012/ workpartners.html. Deborah Mehalik is the manager of Network Services for UPMC WorkPartners, a division of the UPMC Insurance Services Division. The other integrated partner companies of the Insurance Services Division include: UPMC Health Plan, UPMC for Life, UPMC for You, UPMC for You Advantage, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions, and Askesis Development Group.

What an Employer Gains by Using a Workers’ Compensation Plan That Includes Managed Care An employer will gain enhancements in areas such as case closure rate, causality determination and utilization review. Employers also should experience reductions in areas such as the DART rate (days away/restricted/ April 2013 > www.mbabizmag.com > 9


Learn how Erie FCU can assist with your business needs. Betty Reynolds, Commercial Lender (814) 825-2436 Ext. 1051 breynolds@eriefcu.org *Loans subject to credit approval. Rates, terms, and conditions vary based on creditworthiness, qualifications, and collateral conditions. Membership eligibility required.

Short and Long Term Loans Lines of Credit Equipment Financing Business Checking & Savings Business MasterCard® Credit Card Business MasterCard® Debit Card SBA Loans

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Legal Brief

EDITORIAL > By David S. Willoughby

Transportation and Trademarks: General Rules for Use in Commerce For local business owners, what do trademark registration and transportation have in common? In short, everything. It is a little known fact amongst the general population, but federal trademark law finds its roots within the U.S. Constitution. To be exact, the authority of the U.S. Patent and Trademark Office (USPTO) to grant federal trademark registration derives from the Commerce Clause of the Constitution. What this means is that before the federal government has the authority to register a trademark through the USPTO, that trademark must be in use in commerce across state lines, between states, or between a state and a foreign country. With that said, it appears that an applicant cannot be selling goods or services to customers solely residing within their own state. Customers must be interstate, by residing in other U.S. states, U.S. territories (Guam, Puerto Rico, etc.), or with customers in foreign countries (Canada, China, England, etc.). Having this definition in such broad terms still leaves much room for debate on how applicants can properly sell to customers of other states or countries. The good news here is that the Courts have provided guidance on business conduct situations that allow an applicant to acquire a trademark registration, based on how and where an applicant actually conducts business with their customers. Acceptable Situations The most obvious and well known of the allowable situations is when one has a business location bearing their trademark in more than one U.S. state, or one location within the United States and others in foreign countries. Chains of department stores, grocery marts,

and restaurants all exemplify this type of conduct. Another obvious situation is when a registrant has a single central location, but transports their marked goods across state lines and to customers residing outside of the state of that central location. Selling and shipping goods through a mail order catalog service or over the Internet constitutes conduct. To follow along this line of thought, providing services across state lines and advertising for such services is also sufficient to establish interstate commerce when trademarks are attached to those services. Each of the above is a textbook case of interstate commerce. Unfortunately, these examples are often mistaken as the only conduct an applicant can partake in to be granted trademark registration, which is simply untrue. Court Cases There have been many other lesserknown situations where Courts have found one’s business conduct acceptable. In one such case, an owner of a pool hall was found to have interstate commerce because it advertised in multiple states. The Court found that interstate advertising gave the USPTO authority to grant federal trademark registration. See U.S. Shoe Corp. v. J. Riggs West, Inc., 221 USPQ 1020, 1022 (TTAB 1984). In another situation, which could apply to business locations found on upper Peach Street in Erie, it was found that a single automotive service station had been operating in interstate commerce. The Court reasoned that since the station’s location was near federal interstate highways, it was possible for out-of-state residents to transport themselves and their automobiles across state lines to

have work done. See In re Gastown, Inc., 140 USPQ 216 (C.C.P.A. 1964). There are many other examples where Courts have found local business owners to be conducting business in interstate commerce. But the real takeaway here is that a proper finding of interstate commerce is easily achieved, even by local businesses that apparently don’t operate across state lines. So, if you are a local business owner considering federal trademark registration, you don’t have very far to look to prove your customers or goods are transporting across state lines. For more information about federal trademark registrations, please contact David S. Willoughby at MacDonald, Illig, Jones and Britton, LLP at 814/870-7662 or dwilloughby@mijb.com.

David S. Willoughby is a registered patent attorney and an associate at MacDonald, Illig, Jones & Britton LLP. His practice includes representing businesses and individuals in a wide variety of intellectual property matters. He is a graduate of the Franklin Pierce Center for Intellectual Property at the University of New Hampshire School of Law.

April 2013 > www.mbabizmag.com > 11


More than 2100 births per year

Region’s most advanced NICU

All digital mammography

6th most beautiful hospital in the world* *According to a 2012 ranking by HealthExecNews.

World-class care. You can always count on it. UPMC Hamot delivers the most comprehensive women’s health care — including subspecialtiesin maternal-fetal medicine, fertility, urogynecology, gynecologic oncology, women’s imaging, and genetic counseling for breast cancer patients — of any provider in the region. Why would you choose to go anywhere else? For more information, visit UPMCHamot.org.

Affiliated with the University of Pittsburgh School of Medicine, UPMC is ranked among the nation’s top 10 hospitals by U.S. News & World Report.


EDITORIAL > By Dianne Cunningham

Aging & Wellness Paid In-Home Care: Improving The Lives Of Family Caregivers By 2025, the U.S. senior population will more than double to 72 million. The number of family members and friends who are cast in the role of caregiver for an older adult will almost certainly grow in equally large numbers. It will be one of the greatest social changes in the nation’s history, and it has already begun. Recent research shows that the use of paid in-home non-medical care is associated with important personal and professional benefits for family caregivers — benefits that also work to the advantage of the seniors for whom they care. The Benefits of Paid Non-Medical Care for Working Caregivers The strain of holding a job while caring for a senior can take a serious toll on a caregiver’s career. According to the National Alliance for Caregiving and AARP, in 2009, 68 percent of employee-caregivers who were surveyed said they had made accommodations in their work status as a result of their caregiving responsibilities. The accommodations included taking time off and going on leaves of absence; losing benefits; or even quitting the workplace entirely, either by leaving a job or taking early retirement. Our own research shows, however, that the use of paid in-home nonmedical care can help family caregivers remain in the work force and may help mitigate some of the financial sacrifices associated with being an employee-caregiver. Of family caregivers using paid inhome non-medical care, 71 percent were employed — 51 percent of them full time. The numbers were lower for caregivers not using such care: 65 and 49 percent, respectively. So, paid in-home non-medical care apparently

makes it easier for family caregivers to work outside the home. In addition, while most of the caregivers studied had lost earnings because of job changes they were forced to make, those using paid in-home non-medical care had sacrificed less than those who did not use such care. Specifically, an identical 81 percent of caregivers in both groups indicated that at some point they had lost wages as a result of changing jobs to accommodate their caregiving responsibilities — a testament to the hardships of serving as a working caregiver. But those using paid in-home non-medical care did almost 25-percent better in terms of maintaining their previous income levels than did those in the other group. Even though serving as a family caregiver may have a negative effect on an individual’s earning power, the use of paid in-home non-medical care may help mitigate the losses. Our research demonstrates that family caregivers derive important personal and professional benefits when they supplement their senior caregiving with paid in-home non-medical services. Among these: • Better personal health; • Better quality of life; • More help with seniors who make greater care demands, especially those with Alzheimer’s and other dementias; • Help in staying in the work force; • Help in reducing the financial sacrifices that caregiving often imposes; and

need for senior care. At least initially, much of this demanding burden will fall on younger family members, who are already busy with work and children. Thus, paid in-home non-medical care can play a vital role in shoring up a U.S. caregiving system that is already stretched thin, and that will be far more strained in coming years. It is imperative for policymakers to determine how to make safe, affordable in-home non-medical senior care accessible to families that need it. The seniors and their families must take ultimate responsibility for their well-being, of course, but a strategy that brings paid in-home non-medical care within their reach can produce great personal, professional and societal benefits. For more information, contact Dianne Cunningham at Home Instead Senior Care at dcunningham@homeinstead. com or 814/464-9200.

Dianne Cunningham and her husband Bob are owners and operators of Home Instead Senior Care, a licensed agency that helps seniors to “age in place” by providing ADL and IADL personal care services throughout Erie County. They are members of the Independent Council on Aging and the Alzheimer’s Association of Northwestern Pennsylvania Advisory Board, among other organizations.

• Help in delivering more care and better care to their seniors. As the number of older Americans rapidly expands, so will the country’s April 2013 > www.mbabizmag.com > 13


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EDITORIAL > By Joe Bione and Steve Findlay

Business Management The Magical 5X Valuation Multiple Editor’s Note: This article is the second in a four-part series devoted to understanding the transitioning of a company from operational excellence, market intelligence and buy-side strategies, business valuations and exit strategies. This month’s column is focused on providing business owners with an in-depth view on specific parts of understanding what drives the value of a business. Valuation multiples are one of the best ways to determine the value of a company. However, determining the company’s real valuation is much more intricate than simply multiplying the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) and a valuation multiple. For example, if the company’s EBITDA is $1 million, and the valuation multiple is 5 (the median lower middle market valuation multiple) then the company’s valuation is $5 million, right? Not necessarily, which bears asking, “What really drives multiples?” EBITDA multiples provide a means to establish the economic value of an operating business by measuring the business’ earnings stream without consideration to capital structure (before interest) or taxes. An EBITDA multiple is a primary driver in mergers and acquisitions (M&A) price negotiations where a skilled investment banker engages in price discovery among several bidders — companies that each have unique synergies, capital structures and tax attributes. If the business is performing at its optimal operational level, this will drive up the EBITDA level, and the business owner can maximize its value. Multiples are rooted in the notion of return on investment. The return an investor, or buyer, requires for a specific investment is the cost of capital. The

mathematical manifestations for cost of capital are capitalization rates and discount rates. Applying the cost of capital to the expected benefit stream determines the value of the asset. Operational efficiency is critical to improve EBITDA levels, as we discussed last month. (See the March 2013 Business Magazine at www.mbabizmag.com.) Return on Invested Capital Operating companies employ invested capital to generate a return. The capital is invested in operating assets, typically working capital and fixed assets that are financed with interest bearing debt and equity referred to as the invested capital. The return earned on this investment is the return on invested capital (ROIC) for the operating business. The ROIC hinges on the fact that your company is operating at its most efficient level, which some companies are not, yet they expect obtaining the maximum value. ROIC is a critical value driver because businesses that produce more cash flow per dollar of investment (capital utilization) at the same risk level (cost of capital) are worth more. As the ROIC exceeds the cost of capital, the business creates value; and the faster it grows, the more value it creates. A business that creates value commands a higher multiple for a given cost of capital. If the ROIC is the most critical value driver, then what is the best way to improve your return? Some business owners will think that they can grow their way out of this issue when, in fact, growth can be a detriment, depending on your operational performance level. It stands to reason that an underperforming company will have a lower value, and a better performing company should command a higher multiple. Focusing on operational improvement, therefore, ensuring operations are running as efficiently as

possible, enhances EBITDA, and creates greater value and a higher multiple for the business. Summary The magical 5 multiple is a point of departure for cost of capital typically applied to the purchase of a lower middle market business. A transaction that occurs at a 5 multiple is one that is expected to earn a 20-percent cost of capital (1 divided by 20 percent = 5). The real drivers of multiples are ROIC, growth, and operational excellence, but only if the ROIC exceeds the cost of capital. Regardless of the size of the business, owners will have the best opportunity to maximize their market value if its current operations are running at a high level, giving themselves options to negotiate the highest value multiple. Joe Bione is the founder of The Whitehall Group, which has been assisting companies for more than 25 years in how to maximize current operations and improve the bottom line performance of companies all over North America.

Steve Findlay is the managing director of The McLean Group’s Erie, Pennsylvania office, an investment bank providing mergers and acquisitions (M&A), business valuation and strategic consulting services to middle market businesses. The McLean Group has been a partner of The Whitehall Group since 2012.

April 2013 > www.mbabizmag.com > 15


The Runway 6-24 Improvement Program features 7,500 feet of pavement available for landing and 8,420 feet for takeoff. A standard 1,000 feet of safety area at both ends of Runway 6-24 are now providing enhanced safety to the flying public.

Regional Asset Ready to Soar With $83 Million Improvement Transformative. That is how Chris Rodgers, executive director of the Erie International Airport/Tom Ridge Field, and Frank Stefano, president of the Erie Regional Airport Authority (ERAA) Board, describe the $83 million Runway 6-24 Improvement Program — the largest capital improvement program in the Authority’s history. The three-phase, seven-year project was intended to improve safety of the runway, improve poor weather performance, and enable the airport to compete for its fair share of air service with the potential of adding new markets and flights.

“Business leaders value the location and easy access of the airport where their businesses are located,” explains Rodgers. “This includes easy access to commercial air service and business aviation. Access factors in when individuals look to keep their business in the location they are in, expand, or even start a new business. Of the utmost importance are local jobs and the economic benefit.” Chris Rodgers, Executive Director Erie International Airport/Tom Ridge Field

Without the Federal Aviation Administration (FAA)-required standard safety areas in place, officials say, the Erie community was falling behind. “Airlines operate very expensive pieces of equipment and are very selective in deploying those assets. One of the problems we have been dealing with in Erie has been inadequate runway length,” explains Rodgers. “When airlines operate less than a reliable schedule, there is a financial impact — it hits their bottom line negatively, it adds cost to their operation, and it means other communities that don’t have that handicap are going to be ahead of Erie in line for expanded service or even retaining service.” “What is vital about the runway extension is it fixes and addresses the standard safety area issue and provides the adequate runway length,” he continues. “It is a critical piece of our local infrastructure and, now that the goal is accomplished, the community can compete on a level playing field.” For Stefano, the Erie airport is now positioned to provide more reliable, cost effective, and expandable air service. “The runway improvement project will transform our region and help us to become and remain more competitive on a global level,” he explains. “The improvement project will help to keep current business here and will potentially attract new business to our area.”

A Vital Employer, Travel Hub

Frank Stefano, The airport, which started out as a small airfield President in the 1920s and was among the earliest in the Erie Regional nation to be licensed as a commercial airport, has Airport Authority a long history as one of the Erie area’s most vital regional assets. Centrally located between three major urban centers — Buffalo, Cleveland, and Pittsburgh — and off the shores of Lake Erie, the airport serves as a valuable transportation hub to both leisure travelers and employers that operate here today.

16 < www.mbabizmag.com < April 2013

Such access helps these area businesses thrive, and the airport as well. Governed by the nine volunteer members of the ERAA Board of Directors, the airport is one of the region’s most visible employers and among its largest land owners/lease holders. This round-the-clock operation consists of 34 Authority employees, who ensure public safety and maintain and operate the facility, and more than 300 people with active IDs who are authorized to provide services to its customers. These employees work for any number of businesses and agencies, including airlines United, Delta and U.S. Airways, U.S. Customs, the U.S. Immigration Service, the Federal Aviation Administration, the Transportation Security Administration, North Coast Air, North Coast Flight School, Erie Yellow Cab taxi service, four rental car facilities — Avis, Enterprise, Hertz, and National — and a full-service restaurant, the ERI Café. Indirectly, administrators estimate that there are more than 2,000 jobs that are supported by the airport’s existence and operation in the Greater Erie area. In total, that is approximately $61 million of payroll in the region that is supported by the airport overall. “Amazingly, in 2011,” notes Rodgers, “there was about $164.7 million of economic impact generated by the existence and operation of the Erie International Airport. That was before the runway extension.”

Changing Dynamics

Contributing to its current operational success are the adjustments the Erie International Airport has weathered in recent years. According to administrators, the terrorist attacks of September 11, 2001 had a dramatic impact on the air travel industry, and here in Erie, a fundamental shift in the airport’s operations. Rodgers, who in February marked his 11th year of service, says the introduction of the Transportation Security Administration, new security procedures and technology for screening has dramatically changed how safety measures are carried out. “It has really permeated everything we have done since that tragic day,” he says. Likewise the makeup of the Airport Authority and the downsizing of the airport administrative staff also affected its efficiency and progress. Until 2008, the Authority operated as the five-member Erie Municipal Airport Authority. After that, it was expanded to the nine-member Erie Regional Airport Authority to better represent the city, county and region.


Crews worked through the winter months to accelerate the project’s construction schedule.

A completely new approach lighting system will guide planes landing at the Erie airport.

A Community Celebration Then, with the economic downturn and subsequent fuel price spike, the airport reduced its administrative staff by three positions and practically turned over its entire administrative team, forcing Authority personnel to streamline their roles. “We got our house in order and accomplished some pretty positive results,” Rodgers notes. “In the end, it became a sense of ownership among the personnel working here, so much so that the ‘My Airport’ theme we often talk about actually begins right here with our full range of employees.”

Runway Project Takes Off

The greatest example of such pride and progress is the runway extension project, a signature component of the airport’s master plan. A challenging and multi-year improvement program, the expansion took an army to get off the ground — and did, thanks to community and business support, along with federal, state, county and Authority funds. The first phase incorporated the creation of wetlands in neighboring Girard borough to replace those impacted on the airfield; the realignment of Powell Avenue, which had previously limited the length of the 6,500foot runway; and a redesigned storm-water management area that allows for better drainage and reduced flooding. The second phase focused on the actual construction of the 1,920-foot runway extension and 1,000 standard foot safety areas at each end, a parallel taxiway, and installation of an all-new instrument landing system — the lighting, cabling and navigation aids — that pilots use to land during inclement weather, now in use since December 2012.

To commemorate the completion of the improvement project, airport officials are inviting everyone — residents and community and business leaders — to an Aviation Gala & Open House Weekend on August 24 and 25 for a special celebration and ribbon-cutting ceremony. Administrators say the free event will feature attractions such as warbirdtype aircraft, and activities for the kids. Most importantly, it will celebrate the once-in-a-generation airport project that is both “ahead of schedule and under budget.” Stefano describes the regional cooperation among the local municipalities to see the project through to completion as “groundbreaking,” especially given its magnitude. “The project management team not only met the construction schedule, but decreased it by nearly two years and saved millions of dollars, which will be re-invested into the local community,” he says. “An executive staff willing to put lean, business-minded principles in place has not only achieved fiscal solvency, but provided a resilient business model that will lead to future success.” “To an outside investor looking at our region,” he continues, “the success of this project and the rewards it delivers to the region demonstrate that our community is fertile ground for new business.” To learn more about the Erie International Airport/Tom Ridge Field, visit www.erieairport.org.

The third and final phase, to be completed this summer, is focused solely on safety improvements. The primary work is resurfacing the existing runway, which was last updated about 19 years ago, as well as improving the safety area along the sides of the runway to provide proper drainage and grading. “We have improved our infrastructure at the proper time because, if we had waited any longer, we would have been in jeopardy of losing the service that we have today. Now we have just the opposite; we have the opportunity to expand and to add markets that we currently can’t serve,” says Rodgers. Administrators say the airport was unable to tap into air service to Orlando, Florida and other leisure-type destinations because smaller airplanes could not fly that far fully loaded with fuel and passengers. Now the Erie airport has the appropriate runway length to allow larger and heavier planes to fly from Erie to further hub destinations such as Charlotte, Atlanta, possibly Dallas, Chicago, New York and Washington, D.C. “Before the runway extension, they weren’t able to carry enough people to make these flights profitable,” notes Rodgers. “Now we have quite a few opportunities and we are positioned to take advantage of them in the constantly changing airline industry.”

2011 Economic Impacts

(Before Runway Extension) • 294 Direct Airport Employees • $13.9 Million Annual Payroll

ERI Total Economic Impact to Erie Region • 2,051 Total Jobs • $61.1 Million Annual Payroll • $164.7 Million Total Economic Impact Source: Wilbur Smith Associates – PA BOA

April 2013 > www.mbabizmag.com > 17


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OntheHill

DEPARTMENTS > Contact: Lori Joint

Big Government Party vs. Taxpayer Party: Pennsylvania’s Political Paradigm Matthew J. Brouillette is president and chief executive officer of the Commonwealth Foundation for Public Policy Alternatives. He is a prominent voice in statewide public policy debates through frequent appearances in print, television, and talk radio across the Commonwealth. Email him at brouillette@ commonwealthfoundation.org.

A quaint 19th-century town, streets lined with Victorian homes and parks. An isolated community, yet close to the bustling city. It had been a model company town, Pullman, Illinois, but in 1893, it was at the heart of the nationwide railroad union strike featuring violence and vandalism ending with military intervention. Unfortunately, those turbulent times in Pullman, and throughout America, in the late 19th century may revisit us soon. But this time, it won’t be because labor unions rail against a corporation; it will come through a “strike” against the American taxpayers, like in Wisconsin just last year. Today, organized labor is a shell of its former self — at least in the private sector. Total union membership across the country has declined to the lowest level since World War II. In Pennsylvania, unionization rates fell by nearly 40 percent between 1983 and 2012. The loss of more than 460,000 union members over this period occurred while Pennsylvania added more than 1 million employees. But for those who see this as a sign for celebration — that workers no longer see the need for unions in the workplace — a far more destructive threat to Pennsylvania still lingers. It’s found in the government sector, where unions like the Pennsylvania State Education Association, the American Federation of State, County and Municipal Employees, the United Food and Commercial Workers and the Service Employees International Union have actually increased their grip on public employees’ paychecks and those of the taxpayers who fund them. Thanks to legislatively provided privileges that allow unions to force dues and fee payments from workers as a condition of employment, nearly 55 percent of all state and local government employees are in a labor union — a share that has crept up even as private union membership dropped dramatically. Meanwhile in the private sector, only 7.8 percent of employees are in a union. Unfortunately, what was once hailed as a mechanism to ensure fairness in pay and benefits for government labor has become a weapon of inequity that hurts both the workers it intended to protect and the taxpayers who wished to protect them. When government unions gained collective bargaining in the late 1950s — something President Franklin D. Roosevelt and the AFL-CIO once ardently opposed — they received the ability to negotiate with the very politicians they help hire and fire. The game now turned to a clear conflict of interest where government unions

support candidates, then lobby those same politicians to raise taxes, increase debt and spend more taxpayer money. Union bosses benefit when government grows bigger. Naively, one might think a Pennsylvania with the most conservative governor and biggest Republican House and Senate majorities in modern state history would be different in 2013. While it is true that they have reversed some poor policies, they are neither showing the guts nor earning the glory of their colleagues in other states who are taking on budget-busting programs and winning. The reason is clear: It is not the Democratic Party or the Republican Party that wields a legislative majority in Pennsylvania, it is the Big Government Party. Comprising the government employee unions, private sector unions, trial lawyers, extreme greens, and other nonprofits that feed off taxpayer money, the Big Government Party is aligned for a single purpose: To use the American political system to extract the greatest amount of income and wealth as possible for the benefit of but a few. In essence, behind every government program today, you will find the Big Government Party defending unsustainable spending and lobbying to increase it. With politicians enabled by government union funding that fights against even the most modest changes to budget-busting programs like definedbenefit public pensions and prevailing wage, voters can start to understand why no-brainers like ending Pennsylvania’s Prohibition-era, government-run wine and liquor stores have been thwarted. According to the National Institute on Money in State Politics, government union political action committees doled out significant cash to both Democrats and Republicans alike in Pennsylvania. Between 2004 and mid-2012, six major government union political action committees contributed nearly $12 million in total. Compare this to the meager $7.6 million spent by their Texas counterparts — a state with more than double our population. Quite simply, there’s a lot of money in politics because it is politicians that determine who gets your money. But if we’re to veer clear of the financial cliff the Big Government Party is taking us over, the Taxpayer Party — blue and white collar workers joined by their families and entrepreneurs that refuse government handouts — must become the majority party in Pennsylvania once again. April 2013 > www.mbabizmag.com > 19


Global. Integrated. Logistics. From Erie to Istanbul and Beyond Logistics Plus (LP) is a global transportation management company based in Erie, Pennsylvania. Every summer the flags of more than 50 home nations of its employees and customers are proudly displayed over the historic Union Station in the heart of the city, brightening up the redeveloping Station Square and Griswold Park. Most local folks know all about LP’s commitment to Erie and to the growth it has experienced in its 17 years here, becoming one of the more recognizable employers in the region and serving many, if not most, of its top manufacturers.

Logistics has three offices in Turkey, including Mersin, Istanbul and Izmir.

But how many know the other sides of the company — the people and the products behind those colorful flags? Here, we’ll highlight one of them: LP Turkey. LP Turkey is not the company’s biggest “outside” office, but it is one of the fastest growing and most exciting. While Logistics Plus has been in many countries around the world for 15 years or more, the first Turkey office was established in Mersin (a Mediterranean seaport city) only five years ago. In fact, Turkey was chosen to host LP’s first global meeting in 2010. When asked why, Founder and CEO Jim Berlin says, “It’s not always all about Erie. Turkey is something of the crossroads of the world, where West meets East, and it is also a beautiful country.” Since then, LP has expanded to Istanbul and then, just last year, to Izmir, opening up its third office there. The Republic of Turkey Straddling two continents, Turkey has been called the center of world history. Founded in 1923, it is a young republic in an ancient land — seat of the Roman, Greek and Ottoman Empires, birthplace of Homer,

20 < www.mbabizmag.com < April 2013

and the last home of the Virgin Mary. A nation of 75 million people, it is twice the size of California. The Bosporus Strait divides Istanbul in two, forming the boundary between Europe and Asia. It is a beautiful country, one of the few truly self-sufficient nations in the world, and it is growing rapidly. There is a thriving lifestyle and tourist industry, and all religions are welcome. Logistics in Turkey Turkey has an advantageous position between Europe and Asia, giving it an important transit function. Much of the country is like a giant peninsula and it is very easy to reach by ship — both from the Mediterranean and the Black Sea. Most transports are done via sea or road. The rail system has been neglected for years, but improvements are in the works that will soon change that, opening up opportunity for improved rail service.


LP Turkey provides a wide range of logistics solutions, especially entire large-scale, heavy lift projects.

Turkey has mountainous regions in the east, in the direction of Georgia, Iran, Iraq and Afghanistan. And some areas are virtually inaccessible. The most important export markets for Turkey are Germany, Great Britain, Italy, France and the United States. Most imported goods come from Germany, France, Italy, China and the United States. Turkey also is a leading economic power in the Middle East and is expanding trade into northern Africa as well. LP Turkey Logistics Plus’ team in Turkey, like the nation and its people, is young and energetic. Many of these talented professionals have more than 10 years of industry experience, priding themselves in LP Turkey’s reputation as specialists in project cargo. Under the leadership of Managing Director Bahadir Erdil and Operations Manager Basar Kandil, LP Turkey provides complete services for entire large-scale, heavy lift projects. Whether the assignment is to relocate an entire factory to Qingdao or move a precision satellite dish

to a remote elevation in the Nahcivan, Logistics Plus Turkey’s Project Logistics team plans, manages and then executes special logistics projects of any scale, from start to finish. According to the company, however challenging the geography, however complex the movement, LP Turkey’s Project Cargo team works closely with its engineering and contractor customers to ensure that every project is planned, delivered and completed on time and to exact specifications. “We love when we get pictures from these Turkey projects because they are impressive and very, very cool,” states Berlin. “We have dozens of them on our walls right here in Union Station in Erie. These guys are great.” Turkey is just one of 18 foreign countries where Logistics Plus has offices and people helping to “connect the world” — by providing global logistics solutions from Union Station in downtown Erie to the Bosporus a half a world away.

TM

1406 Peach Street Erie, PA 16501 Office: 814/461-7604 Mobile: 814/882-3333 Fax: 800/878-5616 Email: jim.berlin@logisticsplus.net LP Turkey's office is led by Managing Director Bahadir Erdil (left), shown here on a visit to Erie with Yuriy Ostapyak, director, International Division for Logistics Plus.

Website: www.logisticsplus.net April 2013 > www.mbabizmag.com > 21


HR Connection REPORT: WOMEN CEOS OPENING THE DOORS FOR OTHER WOMEN IN LEADERSHIP ROLES Top companies led by women have more women directors in board rooms and in executive officer positions, according to a report by Corporate Women Directors International (CWDI), a Washingtonbased research group focusing on women directors globally. Companies with women CEOs have 22.3 percent women on their boards compared to 9.8-percent average representation of women on the boards of blue chip companies. Similarly, women-led companies have a higher percentage of women in senior management at 24.3 percent than the average representation of women in executive roles in peer companies (12.2 percent). “Clearly, having a woman at the top of the corporate pyramid makes a difference

for other women,” states CWDI Chair Irene Natividad. “The study shows women CEOs tapping the talents of other women for senior roles.” U.S. companies (Avon, Xerox, Wellpoint, Pepsico, Kraft Foods and Sara Lee) with women CEOs dominate the Top 10 list, along with four Canadian and three Philippine companies. All of these companies have over 30 percent of board seats held by women. SURVEY FINDS OPTIMISM AMONG WOMEN BUSINESS OWNERS A national survey of women business owners (WBOs) conducted by Web.com Group, Inc. and the National Association of Women Business Owners (NAWBO) found a pervasive sense of economic optimism, including a prediction by most WBOs (85 percent) that more women will become entrepreneurs this year than in past years. WBOs also plan to invest more (38 percent) or the same (54 percent) in

hiring in 2013 than they did in 2012 — a positive sign for the economy. The State of Women-Owned Businesses survey found that the large majority of WBOs were optimistic about their business’ overall performance (81 percent) for the year ahead. They were also optimistic, though slightly less so, about the broader economic outlook 74 percent) in 2013. The survey “reveals that even in these tough economic times, women entrepreneurs are optimistic about business opportunities for the year ahead,” said NAWBO President Diane L. Tomb. “This survey informs us of the challenges and opportunities facing NAWBO members as well as women business owners in general. At NAWBO, we will strive to address these issues on behalf of all women entrepreneurs.” For more information, visit www.web.com/community.

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22 < www.mbabizmag.com < April 2013

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DEPARTMENTS > Contact: Stacey Bruce

Health Benefit Exchanges Must Meet Key Requirements A health benefit exchange should be a competitive marketplace for Americans shopping for health insurance. From 2014 to 2016, only individuals and small groups are eligible to participate in an exchange. Beginning in 2017, larger groups may be permitted to participate. The health plans offered in an exchange must meet standard requirements for affordability, essential health benefits and consumer protections. The Patient Protection and Affordable Care Act (PPACA) defines four coverage levels: • Bronze Plan: Covers 60 percent of the actuarial value of covered benefits. • Silver Plan: Covers 70 percent of the actuarial value of covered benefits. • Gold Plan: Covers 80 percent of the actuarial value of covered benefits. • Platinum Plan: Covers 90 percent

of the actuarial value of covered benefits.

• Health plan rating system and rate review;

Exchanges also must include: • Adjusted community rating rules with rates only varying by age, tobacco use, geography and family status;

• Standardized format and definitions for plan options and coverage; • Enrollment facilitation; and a • Website and toll-free hotline. For more information about health benefit exchanges, please contact me at 814/833-3200 or 800/815-2660.

• Essential benefit requirements; • Limits on individual cost-sharing; • Subsidies up to 400 percent of the federal poverty level; and • Penalties for individuals who don’t obtain coverage and for employers with more than 50 employees who don’t offer the minimum level of coverage. In addition, exchanges must provide specific support services, such as: • Certification of plans qualified for the exchange;

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

• Support for calculation of subsidies;

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Women In Leadership Development

(QYLVLRQ <RXU /HDGHUVKLS -RXUQH\ Crystal Arlington never dreamed that she would hear her name called as the winner of the 2012 Legacy Award at last year’s Women in Leadership Development (WILD) Conference. But when she did, the smart and savvy businesswoman says she was stunned by the honor. “You probably would have laughed if you were sitting at my table because I couldn’t Crystal Arlington believe it,” Arlington recalls. “Actually, to this day, I am still in disbelief. The other finalists are fantastic women, so even to be grouped with women like that is just an honor, and then to win, you can’t put words to that.”

the program’s philanthropic outreach — Junior Achievement of Western Pennsylvania, health and wellness demonstrations, vendor exhibits, and more. New for 2013, the daylong event, titled, “Envision Your Leadership Journey,” also will take on a greater educational focus — an initiative that is of particular interest to Arlington. “Education is very important to me,” she explains. “Even in my company, it is always a training and learning process, so I feel that education and doing anything to better yourself is the key to being successful.” Maggie Horne, chair of the WILD Steering Committee and manager of Business Consulting at the Gannon Small Business Development Center, which founded the conference in 2008, says the focus of the WILD Conference has always been to empower professional and enterprising women with knowledge, energy and passion.

But the award, an annual recognition for outstanding business leadership, came as no surprise to those who have followed Arlington’s career and mentoring role as a woman business owner. As president and chief executive officer of Affiliated Grounds Maintenance, Inc. in Lake City, Pennsylvania, Arlington has been a standout business leader in her industry. Her business provides landscape and ice-removal services to facilities in more than 39 states, and she is the only woman in North America to hold certifications in both landscape and snow-and-ice management. During the past 11 years, she led her company to record growth in both supplier diversity and facility management customers. Arlington also was named Woman of the Year for 2012 by the National Association of Professional Women, and has been actively involved in launching an advocacy organization that will help women in nontraditional careers achieve greater success. Today, as chairperson of the 2013 WILD Conference, she has played a major role in the planning of the annual conference — a collaboration of 150 volunteers — that will mark its sixth year on Friday, May 10, at Erie’s Bayfront Convention Center. The conference will provide more than 700 guests with access to networking opportunities, two dynamic speakers, an auction that benefits

24 < www.mbabizmag.com < April 2013

This year, however, the conference is reviving its popular educational breakout sessions to give participants, whether they are business owners, company presidents, managers or entrepreneurs just starting out, a greater opportunity to develop their leadership skills. Maggie Horne

Sessions include presentations by Rich Arlington of Rich Arlington & Associates, a consulting firm specializing in the snow, ice and landscaping industries; representatives from UPMC who will discuss stress management; Leigh Pearson, director of Facility, Environmental and Procurement Services for Staples Canada, who will focus on the power of relationships; and Joann Barnes, director of Human Resources at Scott Enterprises, who will talk about employee evaluations. Additional topics include business finance, mentoring and community involvement, return on investment simplified, and a presentation by the Gannon SBDC on marketing and management.


According to Horne, the diversity of offerings is a result of attendee survey responses and WILD Committee discussions to better reflect the conference’s overall focus. “The speakers and topics for the breakout sessions are chosen according to what a woman would be able to utilize as she moves forward in a leadership capacity,” she says. “They can gain tools and tips, and lots of networking opportunities — because the WILD Conference is not just about the speakers and sessions, but also the other individuals who are attending.” Arlington, for one, believes networking has greatly benefited her own career, and the WILD Conference is a chance to learn and connect with other women in business. “It goes back to something I learned years ago about the six degrees of separation,” she states. “Just talking to somebody, maybe they are not your next contact to do business with, but maybe they know somebody who knows somebody. I mean, up until two years ago, I didn’t even advertise. So, for me, the networking has made me extremely successful.” WILD Conference organizers agree that the best way for attendees to get the most out of the event is to invest the time and energy in it. “The industry that I am in is 98-percent male dominated and to be able to sit down with other women who are possibly in the same position as me, and just talk about the trials and tribulations of being in that leadership role, has helped me grow,” Arlington says. “Maybe they don’t do landscape or snow removal, but I get so much more out of networking with the women for the day than I would going to a conference within my industry.” To register or learn more about the 2013 WILD Conference, visit http://wild.sbdcgannon.org.

2013 WILD Conference Speakers

Martha Mayhood Mertz is the author of Becoming ATHENA: Eight Principles of Enlightened Leadership and the founder of ATHENA International, a nonprofit organization that seeks to support, develop and honor women leaders, inspire them to reach their full potential and create balance in leadership worldwide. She is in demand to speak on the topic of leadership and also a successful real estate entrepreneur. She also is president and owner of the Michiganbased firm Mayhood/Mertz Investment, Inc. Mertz was president of ATHENA International from its beginnings in Lansing, Michigan, from 1982 to May 1999. Now an international board leads ATHENA and Mertz serves as a board member and ambassador, traveling the globe to share its message that women bring a distinctive, transforming approach to leadership. A licensed clinical psychologist, Barbara Van Dahlen, Ph.D., was named to TIME magazine's 2012 list of the 100 most influential people in the world, and is the founder and president of Give an Hour, which enlists mental health professionals to provide free services to U.S. troops, veterans, their loved ones, and their communities. Currently, the network has nearly 6,500 providers, who have collectively given more than $7 million worth of services. Working with other nonprofit leaders, Dr. Van Dahlen also developed the Community Blueprint Network, a national initiative and online tool to assist communities in more effectively and strategically supporting veterans and military families.

2013 Legacy Award Winner

Each year, the Gannon University Small Business Development Center recognizes women leaders with the annual WILD Legacy Award. The winner is an experienced professional woman leader who mentors other women, supports her community and excels in her career. The winner is a trailblazer who has carved her own path to success and has supported other women along the way. She must demonstrate high standards in all that she does and serve as an example to others professionally and personally. The 2013 Legacy Award winner will be named at the May 10 conference. The winner will receive a custom glass work of art fashioned as a symbol of strength and empowerment. The artwork is designed by artist Elaine Yancura and consigned through Glass Growers Gallery of Erie. The winner also will receive a custom silver and gemstone necklace designed and crafted by Breakiron Jewelers.

April 2013 > www.mbabizmag.com > 25


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They say if the shoe fits,

wear it.

Our Organizational Leadership graduate program is the next STEP you need to become a LEADER in your field. Why? This program empowers and prepares working professionals to face rapidly changing demands in the workplace, including enhancing your skills in communication, team building and critical thinking. We don’t tell you how to manage; rather, we give you tools to empower others, communicate your vision and produce useful change. Become a Leader in ANY Field. Designed to fit your profession, the Organizational Leadership program offers several concentrations, including: Accounting, Global Entrepreneurship, Higher Education Administration, Human Resources, Non-Profit Management, Organizational Leadership and Sports Leadership.

Make the next step in your career the RIGHT step. Learn how by contacting Graduate Admissions at (814) 824-3351 or by visiting graduate.mercyhurst.edu.

See you at the 2013 WILD Conference on May 10!

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HR Q&A HOW DOES AN EMPLOYER TREAT RELOCATION EXPENSES PAID TO AN EMPLOYEE? As part of a job offer, companies may offer to reimburse a candidate’s employment-related relocation expenses. The reimbursement of an employee’s qualified employmentrelated relocation expenses is not included in the employee’s income, nor is it reported on Form W-2, so there are no withholdings required. The employer may normally treat payments for relocation expenses as ordinary and necessary business expenses. Employees who are transferred also may claim relocation expenses that are not covered by the company. Also, in certain instances, the employee may deduct qualified moving expenses that were included as part of regular salary. IRS guidelines for reimbursement require that the distance between

the old home and the new place of work be at least 50 miles greater than the distance between the old home and the old place of work. If the distance test is not met, moving reimbursements will be reported as taxable income subject to applicable income and employment taxes. DOES TRAVEL TIME COUNT AS HOURS WORKED WHEN AN EMPLOYEE TRAVELS OVERNIGHT? This depends on whether the travel occurs within the employee’s normal work schedule. Any portion of authorized travel that occurs within an employee’s normal work schedule counts as hours worked. Travel on non-work days (such as weekends) also counts as hours worked if it occurs within the employee’s normal work schedule. Time spent waiting at the airport counts as hours

worked if it occurs within normal work hours. Time spent waiting at the airport outside of normal work hours does not count as hours worked (unless work is being done). Riding as a passenger outside of normal work hours, via airplane, train, boat, bus or automobile does not count as hours worked (unless work is being done). However, driving a vehicle, regardless of whether the travel takes place within or outside normal work hours, counts as hours worked. Regular meal periods do not count as hours worked (unless work is being done), nor does overnight lodging; when an employee is free to “come and go.” Any work while traveling, is counted as hours worked (e.g., answering emails or taking business-related phone calls.)

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DEPARTMENTS > Contact: Stacey Bruce

Put Your Random Drug Testing Plan in Writing Random tests should be a key part of your drug-free workplace program since they deter employees from using drugs and misusing alcohol. Unless you are regulated by the Federal Railroad Administration, you don’t need to submit a random testing plan to the Department of Transportation (DOT). However, it is a good idea for you to have a written plan to help you to objectively and consistently apply your program. Each DOT agency sets the random rates for drug and alcohol testing in the industry it regulates. These testing rates are minimums. You can choose to set higher random testing rates for your company. So, if a DOT agency requires a drug testing rate of 50 percent and an alcohol testing rate of 10 percent,

then an employer with 100 safetysensitive employees would have to ensure that 50 or more random drug tests and 10 or more random alcohol tests were conducted during the calendar year. This doesn’t mean that you necessarily will give random drug tests to 50 different employees or random alcohol tests to 10 different employees. Some might be picked and tested more than once, and others not at all. It’s just that each time there is a random selection, all employees have an equal chance to be selected and tested. What makes random testing so effective is the element of surprise. While employees know they will be tested, they are never quite sure of when. Random selections and testing should be performed

at least quarterly. Some employers are selecting and testing more frequently, which is a good idea. To learn more about the “Best Practices for DOT Random Drug and Alcohol Testing,� download the PDF at www.dot.gov/ost/ dapc/testingpubs/random testing brochure.pdf. For more information on DOT drug testing, call the Association’s HR Hotline at 814/833-3200 or 800/815-2660.

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

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Events

Excel Application Specialist – Erie

From left: Diane Gallant, Berry Plastics, and Computer Training Manager Amy Pontillo. Not pictured: Seven graduates from seven companies.

HR Essential Certification Series – Erie

From left: Cindy Grzegorzewski and Chuck Buhl, Erie Forge and Steel; and Association HR Specialist Robyn Hopper.

2013 Spring Training Graduates The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 200 graduates of its professional development and computer training programs. Visit www.mbabizmag.com for complete coverage.

HR Essential Certification Series – Erie

From left: Association HR Specialist Robyn Hopper and Debra Alexander, AG Aegis Company, Inc.

HR Essential Certification Series – Meadville

Front row, from left: Peter Kyne, Eisler Nurseries, Inc., and Jill Pless, Armstrong County Council on Alcohol. Back row, from left: David Green, Diversified Coatings Inc., and Steve Marshall, Crawford Area Transportation Authority.

Blue Ocean Strategy Center

HR Essential Certification Series – Erie

From left: Stephanie Godfrey from Klein Plating Works, Inc. and Robyn Hopper, Association HR specialist.

Lean-Six Sigma – Erie

Front row, from left: Kathe Fenstermacher, Nadine Keller, Kristen Renkes, Cindy DeDionisio, and Heather Yaple, Provider Resources, Inc.; and Association Instructor Ray Davis.

HR Essential Certification Series – Meadville

Front row, from left: Brook Siar, French Creek Production; Amanda Gibson, Rolling Fields, Inc.; Ruth Grube, BFG Manufacturing Services, Inc.; and Rachelle Joyce, Urban Erie Community Development Corporation. Back row, from left: Michael Mason, Trusted & Reliable Healthcare Inc.; Caprice Hudson, Bethesda Children’s Home; Billie Shields, United Community Independence Programs; Caryn Fletcher, Micro Tool & Manufacturing Inc; and Amy Aubel, Imperial Systems Inc.

32 < www.mbabizmag.com < April 2013

HR Essential Certification Series – Erie

Front row, from left: Beverly Pas, Thomas & Betts Reznor; Ed Barrett, Charter Plastics, Inc.; and Cathy Pero, ACL/CPI. Back row, from left: Beth Zajac, Viking Plastics; Megan Pratt, TG Holdings LLC; Kim Scharrer, Erie Regional Airport Authority; and Association HR Specialist Robyn Hopper.


Leadership for Team Leaders – Erie

From left: Mike Moore, MFG Tray Co.; Mark Danielewicz, Samtec, Inc.; Matthew Kuchcinski, Ridg-U-Rak, Inc.; Tom Bulicz, D&I; Stephen Fatica, Fatica’s Clean Slate; and Lisa DeFilippo, Association Training instructor.

Leadership for Team Leaders – Warren

Front row, from left: Jack Weirich, Betts Industries; and Robin Johnson, Melissa Curtis, and Lori McNeal, D&I. Back row, from left: Alex Phillips, Tim McCullough, and George Peck, D&I.

Certified Supervisory Skills Series – Erie

Lean-Six Sigma – Erie

Front row, from left: Richard Garcia, Berry Plastics Corporation; Chro Gregory, Erie Homes for Children and Adults; Marsha Bureigh, ACL/ Clinical Pathology Institute; Bob Smith, Berry Plastics Corporation; and Lisa DeFilippo, Association Training instructor. Back row, from left: Dennis Haynes, FMC Technologies; David Gregory, Erie Federal Credit Union; Josh Berg, Northwest Savings Bank; Muhamed Bico, Berry Plastics Corporation; and Brian Duda and Ted Willis, Erie General Electric Federal Credit Union.

From left: Dennis Nelson, Carl J. DiLuzio and Kark Menzel, Erie Forge & Steel, Inc.; Jon Dutton, AmSafe Bridport; and Association Instructor Ray Davis.

Certified Supervisory Skills Series – Kittanning Certified Supervisory Skills Series – Erie

Front row, from left: Mark Klabek, Corrine Bussard, Joe Davis, Debbie Kozik, Matt Kennedy, and Rob Mrozek, II-VI Incorporated. Back row, from left: Gregg Davis, Steve Palmer, Josh Halin, Brian Kurn, Derek Holman, and Patrick Russell, II-VI Incorporated.

Front row, from left: Kyle LeSuer, KDL Industries; Judith Bernosky, The Warren Company; and Ian Hodapp, Ridg-U-Rak, Inc. Back row, from left: Ryan Shunk, Ridg-u-Rak, Inc.; Patrick Donor, Erie Community Credit Union; and Tim Nagg, Erie Press Systems.

Certified Supervisory Skills Series – St. Marys Certified Supervisory Skills Series – Meadville

From left: William Gracie, Fisher & Ludlow Inc.; Travis Bowersox, Bret Easley, Luke DeVore, and Kelly Hatleli, Ainsworth Pet Nutrition; Jason Saxton, Molded Fiber Glass Tray Company; and Diane Collins and James Santore, Ainsworth Pet Nutrition.

Front row, from right: Jeramy Lyon and Louis Ginther – Bingham & Son Lumber; Debra Sidelinger and Marcy Boswell, Northern Tier Community Action Group Corp.; and Rob Trumpie, Bingham & Son Lumber. Back row, from left: Alan Marie, BFG Manufacturing; Darrick Graham, Mark Wilson, and Dave Carver, Bingham & Son Lumber; Gary Haynoski, Mex America Foods LLC; and George Ginther, Bingham & Son Lumber.

April 2013 > www.mbabizmag.com > 33


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People Buzz MARQUETTE SAVINGS BANK ANNOUNCES NEW APPOINTMENTS Marquette Savings Bank recently announced the addition of Attorney Donald F. Fessler Jr. to its board of trustees. With more than 24 years of experience, Fessler provides legal counsel and representation primarily in the areas of workers’ compensation law, civil litigation and residential real estate law. He is a partner of the law firm of Marnen Mioduszewski, Bordonaro, Wagner & Sinnott, LLC in Erie. The Marquette Savings Bank seat replaces that of his father Donald F. Fessler, Sr., now an emeritus trustee, who was on the board for 35 years. Additionally, Jon Patsy joined Marquette’s Business Banking Division as a business banker at the bank’s main office on Peach Street. In his new role, Patsy is responsible for business development and relationship management. He is a graduate of Saint Bonaventure University. COMFORT CARE & RESOURCES PRESIDENT/CEO APPOINTED TO HOMECARE ASSOCIATION BOARD Jim Fetzner, president and CEO of Comfort Care & Resources in Erie, has been elected to the Pennsylvania Homecare Association (PHA) Board of Directors for a three-year term. The PHA Board represents the state’s homecare and hospice industry, which provides medical, personal and endof-life care in the homes of nearly 1 million Pennsylvanians each year. The Pennsylvania Homecare Association, through its members, promotes and advances bringing care home. 36 < www.mbabizmag.com < April 2013

GUTHRIE JOINS NORTHWEST WEALTH MANAGEMENT DIVISION AS SENIOR VP William M. “Bill” Guthrie has joined Northwest Savings Bank as corporate senior vice president and senior executive of the bank’s Wealth Management Division. In this position, Guthrie will be responsible for the management and delivery of investment and trust services, customer relationship management, business development and all other aspects of the operations and personnel of the Wealth Management Division across the fourstate footprint of the bank. Guthrie most recently was senior vice president and director of Endowments and Foundations for Regions Institutional Trust in Birmingham, Alabama. Prior to that, he served as a senior vice president and director in the Private Client Group of National City Bank. MARNEN LAW FIRM ATTORNEYS RECOGNIZED, NEW ASSOCIATE HIRED The attorneys of Marnen, Mioduszewski, Bordonaro, Wagner & Sinnott, LLC, Law Firm in Erie recently announced the accomplishments of two partners and welcomed a new associate to the firm. Attorney Richard E. Bordonaro was elected to be a fellow in the National College of Workers’ Compensation Lawyers. This distinction is provided to attorneys who have excelled in the practice of workers’ compensation law and have represented clients in the field for at least 20 years. Bordonaro was invited by the American Bar Association to speak on a panel with other

members of the College of Workers’ Compensation Lawyers in Coral Gables, Florida this past March. Attorney Mark E. Mioduszewski has been recertified through 2017 by the National Board of Trial Advocacy as a Civil Trial Advocate; he has been continuously certified since 1992. Mioduszewski has eight times been named by Law & Politics Magazine as a Pennsylvania Super Lawyer and is rated “AV” or “preeminent” by Martindale-Hubbell Law Digest, both based on ratings by professional colleagues. Also, Attorney Andrew S. Nowak has joined the firm as an associate. After graduating from Washington & Jefferson College with his bachelor’s degree in business administration, he earned his J.D. from the Syracuse University College of Law. He will be practicing in the areas of civil litigation, workers’ compensation and real estate. CHANNELLOCK APPOINTS GILES AS PRODUCTION/PROCESS ENGINEER Channellock Inc., a worldwide leader in the manufacture of high-quality pliers and assorted hand tools headquartered in Meadville, has appointed Darren Giles to production/process engineer. In this role, Giles will use his broadbased engineering skills to implement processes, provide expertise to product and fixture design, and support programming and in-plant problem solving. He also will provide engineering skills for a variety of internal and external customers, including sales, production, other engineering personnel and customers.


DEPARTMENTS > Contact: Karen Torres

ERIEZ PROMOTES THREE PROFESSIONALS Eriez, a world authority in advanced technology for magnetic, vibratory, inspection and flotation applications headquartered in Millcreek Township, has announced the promotions of three professionals. John Blicha has been promoted to director of Corporate Communications and will direct Eriez’ advertising, literature, trade shows and inquiry management efforts and manage all corporate public relations and promotional activities, including the Eriez website and Global Link employee newsletter. He also will coordinate global marketing communications and social media programs.

Blicha joined Eriez in 2012 as marketing communications manager, bringing 16 years of experience as a marketing executive within the software, aerospace and manufacturing industries. Andrew Goldner has been promoted to senior manager — Exports. In this expanded role, Goldner will manage the company’s Central American, South American and Middle Eastern sales representative offices and lead Eriez’ export sales, including further development of Eriez market-focused selling strategies. Goldner first worked for Eriez as Export Sales manager. He rejoined Eriez in May 2012 as Export Market Development manager, targeting Eriez’ efforts to identify new and high

potential industrial markets in Central and South America. Jose Marin has been promoted to director – Minerals and Materials Processing (M&MP). In his new role, Marin will manage Eriez’ M&MP product line and serve as lead manager for mining and iron ore processing projects for the company’s North American Division. He also will coordinate with Eriez’ worldwide Affiliate Operations on major mining projects. Marin joined Eriez in 1987, supporting the company’s Latin American sales efforts, eventually becoming assistant manager of M&MP. For the past several years, he has served as director — Americas Export Division, leading the Eriez export team.

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