August 2019 Business Magazine

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SPECIAL SECTION:

WHO’S WHO – Business Professionals

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Insurance

Engineering ) Petit, P.E. Name: William (Bill nt and Office Title: Vice Preside Manager, Erie Office

mation: Contact Infor Email: ineers.com wpetit@urbaneng 02 Phone: 814/453-57 20 Fax: 814/453-20

Address: treet 1319 Sassafras S Erie, PA 16501

urbanengineers.com

Company: nc.

Urban Engineers, I Provided: Products/Services nning, design, Multidisciplinary pla d construction environmental, an support services.

Gannon University, n Education: MBA, tion; BSCE, Clarkso Finance Concentra Environmental University, Civil and Engineering ded: Provi es ervic Products/S the Erie Western of Board member of uthority; member Pennsylvania Port A nt and Productivity n the TRB Manageme served as charima committee, having r of the ASHE embe 012; m e from 2008-2 aving served on th of Franklin Section, h e and as president Board for a decad 999-2002. the Section from 1 tions: Awards/Recogni r ard fo y’s Aw PennDOT Secretar , the highest .

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Smart Trans nning Catalyst Tea and NEPA, and Pla

mation: Contact Infor

Name: Jeff Evans t enefits Consultan Title: Employee B Company: nce Services Northwest Insura es Provided: Products/Servic orks with In his role, Evans w

them address the employers to help e of cost, complianc critical challenges ed isfaction associat and employee sat nefit ee be mploy with their e oncentrates programs. Evans c eloping costhis efforts on dev egies that will be containment strat loyers as they necessary for emp nges of healthadjust to the challe er to comply with care reform in ord regulations. upcoming laws and

Email: thwest.com Jeffrey.Evans@nor

Address: t 4740 Peach Stree Erie, PA 16509

Name: Ellie Cullen nt Director Title: Developme Company: ® Inc. Roar on the Shore es Provided: Products/Servic 3th year in 2019, Now entering its 1 ® is one of the e Roar on the Shore aritable motorcycl

fastest-growing ch d States, attracting rallies in the Unite of visitors to Erie, tens of thousands se money for a to rai ylvania

Penns while encouraging ip. worthwhile charity safety and fellowsh n motorcycle riding, as raised more tha ® The five-day rally h

y to date. ROAR $900,000 for charit ial Bike Week — ’s Offic — Erie 2019 , 19, 20 & 21. is set for July 17, 18

ich Name: Jana G. Goodr Title: President and r Chief Executive Office ring Corporation way Manufactu Company: Sea and Seaway Window ices Provided: Products/Serv facturing since 1959, A fixture in local manu one of the Top 100 Seaway is consistently ized by the National Glass Manufacturers recogn anufactures several lines Association. Seaway mows, patio doors and yl wind me of premium vin g through specialty ho sunrooms, distributin in 20 states. Seaway improvement dealers ny-owned Erie dealer, compa ducts and Window is their nufacturing pro offering all Seaway Ma area homeowners and ents to provem other im businesses.

Email:

fg.com JGoodrich@SeawayM

Phone: t. 339 814/898-2255 Ex Address: reet 2250 East 33rd St Erie, Pa, 16510

seawaymfg.com

Please submit: - High-resolution photo and company logo (300 dpi or higher) - Responses to “fast facts”: name, title, institution, products/services provided, education, professional associations and awards/recognition.

northwest.com

Nonprofit

Manufacturing

mation: Contact Infor

Professional Listing $425

Phone: 814/920-1063

Education: gheny College; B.S. in Economics, Alle MBA, Penn State. ations: Professional AssociSam and Irene Black Penn State Behrend: visory Board, Council of ness Ad Prep, of Busi School ember of Mercyhurst Fellows. Past board m nter, St. Peter Women’s St. Peter Cathedral Cearmonic Orchestra.

Association, Erie Philh ory/executive boards: Current national advis ers Alliance, National or Deal Association.

Window and Do tional Sunroom Glass Association, Na s: Awards/Recognitionni Fellow; Recognized/ 2018 Penn State Alum s national and presented at numerouces. Topics include: international conferen ng long-term relationships Building and maintainil competitiveness strategy, with customers, globa engineering relationships building business andt development and career for successful producsional presentation and advancement, profes etiquette skills.

mation: Contact Infor Email: rontheshore.com sponsorships@roa Phone: 814/833-3200 Address: treet 2171 West 38th S Erie, PA 16508

roarontheshore.com

Education: ministration, Master of Public Ad

Gannon University nition: Awards & Recog® is an American Roar on the Shore iation-sanctioned Motorcyclist® Assoc ved first place event. Roar achie cognized AMA’s in the nationally re Riding Organizer Recreational Road nd has earned of the Year award a

LISTING RESERVATION DEADLINE: Thursday, August 15, 2019

ice Awards. multiple Erie’s Cho t of the 2017 Roar® also was par psy Tour, the

AMA’s National Gy national tour and Indian Motorcycle Bike Buildoff Tour.

Allstate’s national

mbabizmag.co

018 018 m • OCTOBER 2

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LISTING MATERIALS DUE: Thursday, August 22, 2019

ADVERTISING CONTACTS:

David Thornburg • dthornburg@mbausa.org • Frank Mehler • fmehler@mbausa.org 814/833-3200 • 800/815-2660

BUSINESS

VOL. XXXII NO. 8 | AUGUST 2019

MAGAZINE

SPOTLIGHT Q&A:

PENN UNITED TECHNOLOGIES PROPELS INNOVATION, INVESTMENT

ON THE HILL:

FAMILY OWNED FIRM CELEBRATES LEGACY OF BUILDING EXCELLENCE

NEW LEGISLATION TO ENERGIZE PENNSYLVANIA’S INFRASTRUCTURE

114th Annual Event Proudly presents an evening with

KAT COLE COO and President, North America, FOCUS Brands

(Cinnabon, Auntie Anne’s, Carvel, Jamba Juice, Moe’s Southwest Grill, McAlister’s Deli and Schlotzsky’s)

Cole’s improbable rise from working as a hostess to running a billiondollar brand in under two decades is an exemplary story of grit, service, hustle and resilience. Hear learned lessons about leadership and innovation and the role they play in an organization’s ability to adapt and succeed faster.

Co-Founder of Changers of Commerce

WEDNESDAY, OCTOBER 9, 2019 Bayfront Convention Center • Erie 5 p.m. Cocktail Reception 7 p.m. Keynote

Featured on CBS’s “Undercover Boss”

Premium Table of 10: $2,500 Main Table of 10: $2,250

One of Fortune’s “40 Under 40”

Sponsored by:

CNBC’s “Next 25 List of Rebels, Leaders and Innovators” Featured in The Wall Street Journal, The New York Times, Forbes, Inc. and Fortune Reservations: Please call Dianne at 814/833-3200 or 800/815-2660.

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FEATURES FEATURE STORY | WHAT’S INSIDE

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Fueling the Economy Transportation and logistics drive growth.

COVER STORY | LOCAL PROFILE

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Kessel Construction Company representatives discuss the rich history of the Bradford, Pennsylvania-based design-build construction firm, its Butler brand steel buildings, and how it has been building excellence for commercial and industrial customers for the past 85 years.

SPOTLIGHT Q&A | INDUSTRY

7 DEPARTMENTS

12

BUSINESS BUZZ

13

PEOPLE BUZZ

17

HR CONNECTION

20

HR Q&A

WHAT’S NEW

SPECIAL SECTION & EXTRAS 25 EVENTS See exclusive photo

EDITORIAL

coverage of the Association’s networking events and more.

LEGAL BRIEF | CONTRACTS

9

AWARDS AND PROMOTIONS

WORKPLACE TRENDS

GET ANSWERS

Executive Editor Karen Torres ktorres@mbausa.org Contributing Writers Stacey Bruce Jezree Friend Tom Pendleton Lisa Wagner, DMD, MPH

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

Additional Photography iStockphoto.com Casey Naylon Design, Production & Printing Printing Concepts Inc. printcon@erie.net

Understanding shipping terms: Moving goods from seller to buyer.

Tom Pendleton

ON THE HILL | INITIATIVES

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Feature Photography Matt Kleck

Jim McKain, SPHR, HR manager for Penn United Technologies, a high-precision manufacturing solutions provider headquartered in Cabot, Pennsylvania, discusses the company’s impact on the transportation market and beyond.

New legislation to energize Pennsylvania’s infrastructure.

Jezree Friend

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

On the Cover: Kessel Construction, which is celebrating its 85th year in operation in 2019, is a premier design-build business, which specializes in turnkey construction of commercial and industrial buildings in northwest Pennsylvania and southwestern New York. Shown here is the family owned company’s latest building project for the new Legacy Truck Centers in Brookville, Pennsylvania. For full story, see page 4.

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 2019 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.

mbabizmag.com • AUGUST 2019

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MBA EXCLUSIVE LOGISTICS PLUS PROGRAM FOR MEMBERS ONLY

1. Is transportation and logistics a major expense for your business?

2. Do you feel like you’re paying more than you should?

3. Do you ship or receive palletsize (less-than-truckload) or full truck-load shipments?

4. Do you require warehousing, distribution or fulfillment services?

5. Ever wonder if you could save more using UPS instead of FEDEX for small packages?

6. Wish you had more expertise managing your import or export freight shipments?

7. Do you find Incoterms and import/export tariffs confusing?

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

IF YOU ANSWER “YES”...

THEN THE MBA’S EXCLUSIVE LOGISTICS PROGRAM COULD BE THE SOLUTION YOU’VE BEEN SEARCHING FOR! Thanks to our partners at Logistics Plus, the region’s leading transportation and logistics experts, you’ll find the knowledge and costsaving expertise you need to solve even the most complex import/export transportation issues!

To learn more about the exclusive logistics discount program for MBA members only and get a risk-free transportation and logistics analysis, visit mbausa.org/logistics today!

FEATURE STORY | WHAT’S INSIDE

Fueling the Economy

TRANSPORTATION, LOGISTICS DRIVE GROWTH Transportation and logistics are an integral part of almost every business, and their impact on the economy is not slowing down any time soon.

Transportation is among the more vital economic activities for a business. By moving goods from locations where they are sourced to locations where they are demanded, transportation provides the essential service of linking a company to its suppliers and customers. It is an essential activity in the logistics function, supporting the economic utilities of place and time.

Spending on transportation, inventorycarrying costs and other shippingrelated expenses as a share of gross domestic product (GDP) last year reached its highest level since 2014, the Council of Supply Chain Management Professionals said in its annual State of Logistics Report.

In fact, businesses spent a record $1.64 trillion on logistics in 2018, up 11.4 percent from the prior year and accounting for 8 percent of GDP, the report said. Industry experts view the logistics share of GDP as a measure of the efficiency of transportation and distribution networks, and last year’s figure was sharply up from a 7.5 percent share in 2017.

This year, Logistics Plus in Erie spearheaded efforts to establish National Logistics Day on June 28, 2019 to celebrate the important, growing logistics industry.

According to estimates, logistics expenses in the United States account for nearly 8 percent of everything we make and sell. That includes packaging, warehousing, shipping and more. The third-party logistics (3PL) industry — those who help businesses efficiently manage logistics across their supply chains (from 3PLs to truckers to warehouse managers) — represents an $800 billion industry on its own.

In this edition of the Business Magazine, we’ll take a look at some key providers and programs that keep businesses moving around the region — and the globe. We’ll also highlight the 85th anniversary of Kessel Construction, a Bradford, Pennsylvania-based designbuild firm that has been the contractor

of choice for many transportationrelated businesses when it comes to their building needs.

In addition, we’ll hear from Penn United Technologies, headquartered in Cabot, Pennsylvania, about the innovation and investment it has made in manufacturing solutions for a variety of industries, including automotive and aerospace.

Plus, be sure to read this month’s Legal Brief article on how to better understand shipping terms for your business, as well as our On the Hill article on new legislation that is expected to energize Pennsylvania’s infrastructure.

To read the Business Magazine online, visit www.mbausa.org!

NAVIGATING YOUR BUSINESS WORLD!

mbabizmag.com • AUGUST 2019

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COVER STORY | LOCAL PROFILE

Kessel Construction is erecting the new Legacy Truck Centers dealership in Brookville, Pennsylvania. Shown here are CEO Dick Kessel, President Tim Asinger and Legacy Truck Centers President Matt Niebauer, founder John Niebauer Jr. and Vice President John Niebauer III.

Family Owned Firm Celebrates 85 Years of Building Excellence.

Overlooking the busy traffic along Interstate 80 in Brookville, Pennsylvania, construction crews have been hard at work erecting a new, state-of-the-art Legacy Truck Centers dealership for a grand opening this fall.

and Port Erie Plastics in Erie, Jim Coast Sales and Service in Duke Center and UGI Energy Services in Reading, Pennsylvania, have all trusted Kessel to handle some of their biggest construction jobs.

John Niebauer Jr., founder of Legacy, which sells new and pre-owned heavy duty trucks, says the project consolidates two dealerships, making it the largest of its nine locations in Pennsylvania. The project represents a $7 million investment for the company, which needed the skills and experience of a trusted builder to get the job done right.

According to Jeff England, director of Project Management & Construction for UGI, Kessel Construction has been a valuable partner with the company and has played an instrumental role in support of its midstream and LNG capital projects. “Their willingness to integrate themselves into the design process, combined with their responsiveness in the field, make them a top contractor for our organization, as well as other oil and gas operators,” he says.

“It’s quality first with Kessel,” explains Niebauer, who owns Earth Movers Unlimited, Inc. and has worked with Kessel Construction CEO Dick Kessel for over 35 years. “Dick Kessel has been a man of integrity ever since I’ve known him. You know when you say the name Kessel that you will get a quality product.”

Niebauer’s son John III, who took over Legacy’s ownership two years ago with his brother Matt, has been equally impressed with Kessel’s work.

“Their pricing was competitive, and they have a very experienced staff,” he says. “Kessel Construction has done a good job on the quoting process and made helpful suggestions along the way.”

Bradford, Pennsylvania-based Kessel Construction, Inc. has certainly earned a reputation for building excellence — and an unwavering commitment to its customers, employees and community — over the past 85 years.

Today, the family owned and operated design-build business, which specializes in turnkey construction of commercial and industrial buildings, is widely recognized as a premier builder for numerous employers throughout western Pennsylvania and southwestern New York. Businesses, such as Southern Tier Brewing in Lakewood, Harley-Davidson of Jamestown in Falconer and Ralston Purina in Dunkirk, New York, as well as Niagara Plastics

Jeff Horneman, support operations manager at Port Erie Plastics adds, “Kessel Construction has been a successful partner with Port Erie Plastics for the past 18 years. They built the first warehouse in 100 days and have added four additional warehouses/additions since then. We have always found them to be reliable, competitive, good to work with and they stand behind their work.”

Born in PA

Kessel’s work in the oil and gas industry spans three generations, dating back to 1934 when founder William Oscar (“W.O.”) Kessel began providing onsite construction services for the oil fields in McKean County. Kessel was responsible for building the “dog houses,” or wooden framed, metal roof structures, which were used as shelters for workers and to house equipment used by South Penn Oil Company (the presentday Pennzoil).

As demand for construction grew in PA’s oil country, so did Kessel’s business. By 1949, when Kessel made the strategic move to acquire a Butler Manufacturing steel building franchise, its business had skyrocketed.

“William Oscar was very wise to get involved with Butler,” explains President Tim Asinger. “We went from being just a small, niche player Jim Coast Sales & Service in Duke Center, Pennsylvania, looked to Kessel Construction to build its Butler pre-engineered steel building to house its Outdoor Power Equipment and Powersports dealership.

Kessel Construction is well known for its large-scale building projects, including the SMC/Catalus location in St. Marys, Pennsylvania. The building features an impressive 1.22 million pounds of steel.

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AUGUST 2019 • mbabizmag.com

Among some of Kessel Construction’s most widely recognized builds are the Harley-Davidson of Jamestown in Falconer, New York, and Fredonia Chrysler, Dodge, Jeep in Fredonia, New York (shown here).

UGI Energy Services has worked with Kessel Construction to support many of its midstream and LNG capital projects.

Shown here is a Kessel-built compressor station.

in McKean County, Bradford, Pennsylvania, to growing into one of the predominant design-build contractors in the area.”

Over the years, Kessel Construction expanded its services to include sheet metal, steel fabrication and concrete foundations, and the company thrived with a growing number of industrial and commercial building projects. In the late ‘70s, W.O. Kessel passed the torch to his son, Dick, who helped propel the company forward through Kessel’s quality work and unwavering commitment to customer service.

“People do business with people they like and trust, and fortunately we’ve had likeable people over the years and worked hard at earning their trust,” explains Dick Kessel. “Our goal has always been finding out what’s important to the customer, what they really want to build and their comfort level with construction, and then meeting their needs.”

With this customer-centric business approach, Kessel was able to dominate the marketplace in the northern tier of Pennsylvania and southern tier of western New York. In 1996, Asinger, Dick’s son-in-law, opened the company’s sales and marketing office in Erie and eventually rose to leadership roles as vice president and eventually president. In 2011, Asinger and his wife Kristin Kessel Asinger executed a succession plan for continuing the family construction business — and its tradition of exceptional service and support.

“The majority of business we do is repeat business,” explains Asinger of Kessel Construction’s secret to success. “We’ve been fortunate to have a strong base of business coupled with the legacy of a good reputation, good work and good value for the dollar.”

A Strong Brand, Services

Kessel has established itself as a strong brand made stronger by its 70 years as a Butler Builder. Today, the company maintains its position as one of the 10 oldest Butler Builders in the nation, crediting the Butler Manufacturing name and its pre-engineered steel buildings as the cornerstone for its growth, success and reputation as a highquality builder.

“The Butler Building standing seam roof, MR24, for example, is really the Cadillac of the industry,” explains Dick Kessel. “You put it on a several hundred thousand square foot building and have no leaks; it’s very impressive.”

Mat Coast, general manager of Jim Coast Sales and Service in Duke Center, Pennsylvania, sought out Kessel to build a nearly 16,000-squarefoot (Butler brand) steel building to house its Outdoor Power Equipment and Powersports dealership. “We chose Kessel for many reasons,” Coast explains, “but ultimately for their commitment to providing us with a quality product.”

According to Asinger, Kessel’s goal isn’t a “one-and-done” project; it’s building for a lifetime and providing high-efficiency systems and materials that can reduce a customer’s operating costs. “A lot of times what we do is we go back and try to work with the customer on anything

Kessel Construction was contracted to construct the new, larger 40,000-square-foot Southern Tier Brewing in Lakewood, New York, including several additions.

that may come up with a facility over the life of the building,” he says.

“We’ve really earned a reputation for delivering on what we promise and giving a good value for what we provide to our customers.”

With 35 highly skilled employees, Kessel operates as a one-stop shop (or turnkey operation), which means it can control costs by handling everything from site development and permitting through to job completion. The company also maintains its own equipment and selfperforms concrete and steel work for the majority of projects.

“Once we start construction, we pride ourselves on fast tracking every project,” explains Asinger. “We want to be in and out of a project as quickly as we can, and we know most owners feel the same way. They can’t wait to get into their new facility.”

A Bright Future

As Kessel Construction looks forward to the future, the company has continued to gain distinction with its many industry recognitions.

Most recently, the company was presented with the $50 Million Dollar Lifetime Volume Award, the High Performance Builder Award and Million Dollar Builder Award at the 2019 Butler Manufacturing national sales meeting. Asinger also was presented with the Falcon Club award, which recognizes his two years of service on the Butler National Advisory Board and service to his fellow Butler Builders.

Company representatives agree that Kessel Construction is positively positioned for success as it embarks on the next 85 years.

“My vision is to just keep operating the company in a similar manner that William Oscar and Dick Kessel had of providing great value, competitive pricing, meeting expectations and delivering what we promised,” says Asinger.

Adds Dick Kessel, “Looking back on the business that my father built: going from the oil fields into industrial and commercial business; giving me the opportunity to learn the business and later taking over; and then to be able to see it continue and thrive to the next generation, I think he’d be very pleased.”

For more information about Kessel Construction, visit www.kesselco.com.

Founded: 1934 by W.O. Kessel Headquartered: 345 High Street, Bradford, PA 16701 Services: Design-build construction, general construction, oil and gas construction, commercial and industrial construction, Butler building systems, and metal roofing and re-roofing projects.

Phone: 814/362-4696 Email: info@kesselco.com Website: www.kesselco.com

mbabizmag.com • AUGUST 2019

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SPOTLIGHT Q&A| INDUSTRY

Penn United Technologies Propels Innovation, Investment From automotive to aerospace, American manufacturing companies supply many of the products and parts that keep our world moving.

Here, Jim McKain, SPHR, HR manager for Penn United Technologies, a high-precision manufacturing solutions provider headquartered in Cabot, Pennsylvania, discusses the company’s impact on the transportation market and beyond.

Penn United has been a major manufacturer in Western Pennsylvania since 1971. How would you best describe the company in size and scope, and where it is today?

We are an employee-owned precision manufacturing solutions provider that has grown organically from 500 to 675 employee owners over the past couple years. Our recent acquisition of Quala-Die Inc. in St. Marys, Pa., brings our total staffing count to 775. We continue to expand our offerings, and we are always looking for our next acquisition opportunity.

What types of manufacturing solutions do you provide and what markets do they serve?

Solutions include our original core competency of tool and die design, prototyping and manufacturing, which led us into stamping, electroplating, assembly and a host of related offerings. We are a significant market force in the tungsten carbide and silicon carbide market via an acquisition we made over two decades ago. That business has now grown to over half of our business today. Our Quala-Die division is a leading producer of tooling for the powdered compaction tooling industry.

This past year, we also started a strategic partnership to develop additive manufacturing capabilities, and we see that as a key innovation opportunity for our future.

We serve the transportation and aerospace industries extensively, and also have significant offerings in the defense, energy, oil and

gas, medical, fluid handling, electronics and telecommunications, and nuclear, just to name a few.

In the area of transportation, tell us about Penn United’s contributions to the automotive and aerospace markets.

We provide electrical conductivity solutions for the automotive market. The electrical content in the average car has risen drastically over the past decade and will continue to do so for the foreseeable future. The average new car today has over a hundred times more computing power than NASA had on the Apollo 11 when Neil and Buzz landed on the moon! Industry experts say the traditional 12-volt automotive electrical system will be replaced by a 48-volt system in the decade ahead, and we will play a part of that conversion. We also make components and provide services for the electric and autonomous car markets.

In the aerospace market, we are leading innovation in the jet engine market place where we have a back log that will keep us busy for the next several years. We have strong partnerships in place for the long term.

What distinguishes Penn United from its competitors?

The first two keys run hand-in-hand; employee ownership and culture. We are only a few percentage points away from being 100-percent employee owned. That means everyone in our workforce from the food service assistant to the president/CEO owns stock in our company. Every year, every employee is given shares of stock equal to

5 percent of their gross earnings. The stock is deferred compensation and is put into a trust account to provide for the retirement of our workforce. In addition to the stock, we have a very unique monthly profit-sharing bonus that pays a portion of our monthly profits back to our workforce. This gives our workforce an amazing focus on the bottom line profitability of our company because they know it will come back to them in the form of their monthly profit sharing! The innovation and continuous improvement that is driven by this culture alone is truly amazing. Our workforce is motivated to achieve the same outcome; serve our customers and drive down costs.

In addition to receiving accolades from Best Places to Work, we also recently earned the Apprenticeship of the Year Award from the state of Pennsylvania. We currently have more than 100 full-time employee owners enrolled in apprenticeship classes in our onsite 17,000-square-foot L.I.G.H.T. (Learning Institute for Growth in High Technology) training facility.

What is the outlook for Penn United in the long term?

“The future’s so bright, I gotta wear shades!”

Despite our vision and strategic planning efforts, 10 years ago we never could have predicted where we are today. It’s safe to say the next 10 years will be the same. We will have a strategic plan, but we will remain agile enough to adapt and entrepreneurial enough to invest in the future of our brand.

mbabizmag.com • AUGUST 2019

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LEGAL BRIEF | CONTRACTS

Understanding Shipping Terms: Moving Goods From Seller To Buyer

contract is silent as to shipping terms or if the contract is ambiguous.

Likewise, the most commonly used Incoterms are: • DDP — Delivered Duty Paid (named place) of destination — seller delivers goods to buyer, paying all transportation costs, export duties and import duties.

• EXW — Ex Works (named place) — seller places goods at buyer’s disposal at seller’s facility.

• FAS — Free Alongside Ship (named port of destination) — seller delivers goods to a dock at the port of shipment; buyer bears all subsequent costs.

Tom Pendleton is a partner with MacDonald Illig Attorneys. He has been representing businesses, nonprofit corporations and individuals in a wide variety of legal matters for more than 25 years.

He concentrates his practice on business matters, including preparing agreements and commercial litigation.

In contrast, in a destination contract, the risk of loss passes upon delivery to the destination. A destination contract will specify delivery at a location other than the seller’s factory or warehouse. The duties of a seller under a destination contract are to deliver the goods to a specified destination and to hold the goods there for the buyer for a reasonable amount of time if necessary.

Shipping terms in a contract for the sale of goods provide both delivery instructions and assign risk of loss if there are delivery problems while transporting goods from the seller to the buyer. Risk of loss passes when the goods are deemed delivered, not when the buyer receives them.

The most commonly used shipping terms in the UCC are:

One type of contract is known as a shipment contract. In a shipment contract, the delivery of goods to the carrier is considered delivery of goods to the buyer. The seller’s duties end when the goods are delivered to the carrier, the seller has made a reasonable contract of shipment, notified the buyer and sent any required documents.

Two sets of shipping terms are commonly used. The first is the Uniform Commercial Code (UCC) used in domestic shipments.

The second set of terms is Incoterms, most recently revised in 2010, which are more typically used in international shipments.

• Free on Board (FOB) place of shipment or shipment contract • Free on Board (FOB) place of delivery or destination contract • Free on Board (FOB) vessel, car or other vehicle • Free Along Side (FAS) vessel (watercraft) It is important for the buyer to negotiate favorable shipping terms because the provisions in the UCC are more favorable to the seller. The UCC’s terms will apply if the

• CIF — Cost, Insurance and Freight (named port of destination) — seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for a minimum insurance cover against the buyer’s risk of loss or damage to the goods during the carriage.

• FOB — Free on Board (named port of shipment) — seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.

The risk of loss or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onward.

Parties to a contract need to understand these terms so that they know if it is their responsibility to engage a freight forwarder, common carrier or logistics company to assist with shipping. They also must discuss these terms with their insurance broker to make sure that any risk of loss is appropriately insured. Finally, they may need to review these terms with their financial institution if they are buying or selling on credit.

For more information, contact Tom Pendleton at 814/870-7756 or tpendleton@mijb.com.

mbabizmag.com • AUGUST 2019

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ON THE HILL | INITIATIVES

New Legislation to Energize Pennsylvania’s Infrastructure Jezree Friend is the Manufacturer & Business Association’s senior government relations representative and is responsible for developing legislative priorities and strategies; encouraging membership grassroots activities; and lobbying on behalf of a pro-growth, pro-business agenda.

Contact him at jfriend@mbausa.org.

What if I told you there is a plan in the Pennsylvania General Assembly that would create jobs and redevelop infrastructure without any new fees or taxes?

Let that sink in: pro-growth legislation without raising taxes. That’s revolutionary stuff!

The legislative package, dubbed “Energize PA,” will create jobs, re-use abandoned manufacturing sites and streamline permitting processes. These ideas have bipartisan support from lawmakers and stakeholders.

it has transformed Pennsylvania into the No. 2 natural gas-producing state in the country and a major component in America’s pursuit of global energy dominance.

Statewide, the industry pays an impact tax, which goes directly back to the counties for community projects and infrastructure upgrades. The impact fee has provided $1.7 billion in local revenue since 2012. The Independent Fiscal Office estimates the impact tax revenue collected from 2018 alone will total $247 million for distribution across the state, the largest-ever annual revenue generated. Each year since his election, the governor has called for additional taxes on the industry for different reasons with each request. The governor’s proposed increase would turn our state from one of the most competitive to among the highest taxed in the industry.

As part of the Energize PA initiative, the focus is to capitalize on our strengths rather than weaken them. The attractive provisions include: • Attracting large manufacturers to Pennsylvania by providing a tax credit to those industries using methane in production.

The plan highlights Pennsylvania’s roots in energy and manufacturing, all the while building our booming economy to provide familysustaining jobs.

• Encouraging businesses to invest in growth and technology by increasing the Net Operating Loss deduction cap that a business may carry forward. The current percentage is 40 percent. This bill increases that number to 45 percent in taxable year 2020 and 50 percent in taxable year 2021.

Pennsylvania has long realized significant benefits from oil and gas production in the Keystone State. The industry alone contributes $45 billion to Pennsylvania’s economy, provides more than 300,000 family sustaining jobs, generates billions of dollars in bonus and royalty payments for Pennsylvania landowners, and significantly reduces air emissions. Additionally,

• Generating and retaining family sustaining jobs and encourage capital investment in Pennsylvania’s natural gas and manufacturing industries by creating 20 Keystone Energy Enhancement Zones whereby business will be eligible for state and local tax exemptions, as well as tax credits for 10 years.

• Demonstrating that Pennsylvania is open for business and wants new industry by creating a registry within the Department of Community and Economic Development of abandoned manufacturing sites that will list all available properties for development.

• Further incentivizing businesses to remediate properties that pose health and safety risks to our residents through the brownfields and redevelopment program by creating a streamlined process.

• Reforming the environmental permitting process and plans so industries can get to work without bureaucratic delays.

Pennsylvania needs a regulatory and permitting structure conducive, not punitive, toward capital investment.

• Creating an independent commission to deal solely with the Department of Environmental Protection (DEP) permit process. This will free up the DEP to focus on enforcing environmental laws.

The gas industry and manufacturing go hand-inhand and their success is right in front of us with our best days ahead. Evidence? Check out the cracker plant going up in Beaver County. There are presently 3,700 workers with that number set to grow to 7,000.

We have heard repeatedly over the last year thanks to the “Forge the Future” study that the right public policies with cooperation from the private sector can generate a $60 billion increase in Pennsylvania gross domestic product, support an additional 100,000 new jobs and increase state revenues by $2 billion to $3 billion.

As important as it is to work on our weaknesses, our strengths carry us. Let’s build our strengths and “energize” our manufacturing sector without raising taxes. mbabizmag.com • AUGUST 2019

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BUSINESS BUZZ | WHAT’S NEW LOGISTICS PLUS CELEBRATES NATIONAL LOGISTICS DAY

Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, recently partnered with the Registrar at National Day Calendar to proudly proclaim June 28 as National Logistics Day™ — a new annual day to recognize and appreciate the importance of the logistics industry in both our national and global economies. In addition, Resolution 395 was unanimously passed in the Pennsylvania House of Representatives to declare June 28 National Logistics Day. According to a Logistics Plus press release, nearly 748 years ago, on June 28* of 1271 (*quite possibly, but maybe not), the logistics industry first started to take shape when Marco Polo journeyed to China on the “Silk Road” and kept a detailed written record, paving the way for future traders and merchants traveling between Europe and China. In 1896, the first “horseless carriage” semi-truck was invented, improving how goods moved across our country. The first air cargo flight took place in 1910 between Dayton and Columbus, increasing the speed with which goods could be delivered in the United States. In 1956, the first container ship sailed from the port of New Jersey to Texas, forever changing how goods would move around the world. Logistics connects the world and always will.

Today, logistics expenses in the United States account for nearly 8 percent of everything we make and sell.

That includes packaging, warehousing, shipping and more. The third-party logistics (3PL) industry — those that help businesses efficiently manage logistics across their supply chains (from 3PLs to truckers to warehouse managers) — represents an $800 billion industry on its own.

To celebrate National Logistics Day, Logistics Plus hosted a special event at its global headquarters at Union Station.

Visit www.NationalLogisticsDay.com to read interesting facts about the logistics industry. To learn more about Logistics Plus, visit www.logisticsplus.net.

Logistics Plus, headquartered at Union Station in Erie, Pennsylvania, recently held a celebration to recognize National Logistics Day.

WABTEC CHOSEN TO IMPLEMENT PTC SYSTEM ON NEW MEXICO RAIL RUNNER EXPRESS

Wabtec (NYSE: WAB), headquartered in Wilmerding, Pennsylvania, was selected to implement the Positive Train Control (PTC) system for the New Mexico Rail Runner Express (NMRX), in an order worth $55 million. Building on ongoing design work, Wabtec will provide full system integration for deployment of PTC on NMRX’s full fleet of 18 locomotives/cab cars and nearly 100 miles of track extending from Belen to Santa Fe. “Wabtec is pleased to support NMRX’s deployment of PTC,” said Rajendra Jadhav, president, Wabtec Electronics. “With 22,000 locomotives and cab cars across the United States equipped with Wabtec PTC technology, it is a privilege to help advance the rail industry’s vital safety mission, and we look forward to accelerating our work with NMRX.” Under the contract, Wabtec will implement its Interoperable Electronic Train Management System (I-ETMS®) PTC safety-overlay system on NMRX, including all necessary wayside and communication design and dispatch upgrades, with full PTC Back Office Server (BOS) support and equipment and software upgrades to nine NMRX locomotives and nine cab cars.

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PARKER TO ACQUIRE LORD CORPORATION

Parker Hannifin Corporation (NYSE:PH), the global leader in motion and control technologies, announced that it has entered into a definitive agreement to acquire LORD Corporation for approximately $3.675 billion in cash. The transaction has been approved by the Board of Directors of each company and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

LORD, headquartered in Cary, North Carolina with manufacturing operations in northwest Pennsylvania, is a privately-held company founded in 1924 offering a broad array of advanced adhesives, coatings and specialty materials, as well as vibration and motion control technologies. LORD’s products are used in mission-critical applications in the aerospace, automotive and industrial markets. LORD has annual sales of approximately $1.1 billion and employs 3,100 team members across 17 manufacturing and 15 research and development facilities globally. Ed Auslander, president and CEO of LORD, said. “With complementary business segments, coming together with Parker enables LORD to carry out our grander vision.”

For more information, visit www.lord.com and www.parkerhannifin.com.

PEOPLE BUZZ | AWARDS AND PROMOTIONS SAINT MARY’S HOME OF ERIE ANNOUNCES NEW PRESIDENT, CEO

Saint Mary’s Home of Erie Board of Trustees recently named Allen L. Bonace as president and chief executive officer, effective June 1. Bonace succeeds Sister Phyllis McCracken, SSJ, who left Saint Mary’s, effective June 30, after 35 years of ministry to assume an elected role of Leadership with the Sisters of St. Joseph of Northwestern Pennsylvania.

Bonace joined Saint Mary’s Home of Erie in 2003 as the director of Nursing at Saint Mary’s at Asbury Ridge. In 2016, he was promoted to vice president for Special Projects. Most recently, in January of 2019, he was appointed to the newly created position of chief operating officer.

According to a press release, Bonace brings a track record of strong leadership and proven success to his new position as president/ CEO. He has played a crucial role throughout his tenure in advancing the care provided by Saint Mary’s Home of Erie. He oversaw the implementation of an Electronic Health Records Management System resulting in improved accuracy and order follow-through; established the Quality Assessment Performance Improvement (QAPI) plan; established an Infection Prevention and Antibiotic Stewardship Program reducing the spread of disease and limiting the unnecessary use of antibiotics; and successfully spearheaded the initiative to achieve a five-year CARF-CCAC Accreditation, positioning Saint Mary’s East and Saint Mary’s at Asbury Ridge as two of only three CARFCCAC Accredited Continuing Care Retirement Communities in Erie.

Bonace attended Ohio University, Athens, Ohio, and received an associate degree in Nursing from Hocking College, Nelsonville, Ohio. In addition, he holds a dual Master of Science in Nursing and Master in Business Administration degree from Gannon University. Bonace is board-certified as a nurse executive by the American Nurses Credentialing Center. He currently serves on the Board of Directors at Erie Homes for Children and Adults, Inc. (EHCA) and the Professional Advisory Committees for UPMC Home Care and Family Hospice and Mercyhurst University Nursing Department.

He also holds a Pennsylvania Nursing Home Administrator’s license. Bonace has held staff and management positions at both Hamot Medical Center (now UPMC Hamot) and Saint Vincent Health Center (now Saint Vincent Hospital). He also served for 10 years as an adjunct faculty member in the graduate Nursing program at Villa Maria School.

Bonace’s predecessor, Sister Phyllis McCracken, has served as the president/CEO of Saint Mary’s

Home of Erie for the past 17 years and has been key to the success of many large-scale projects.

She was instrumental in the establishment of the Gallagher Center for persons with Alzheimer’s and Dementia, expanded Saint Mary’s services by overseeing the planning and development of Saint Mary’s at Asbury Ridge and later the Carriage Homes at Asbury Ridge, directed the accreditation of Saint Mary’s as a Continuing Care Retirement Community (CCRC) and oversaw the $21 million Replacement and Renovation Project at Saint Mary’s East.

MEYER DESIGN PROMOTES REMALEY TO PRINCIPAL

Meyer Design, Inc. (Meyer), a national architecture and interior design firm based in Ardmore, Pennsylvania, has promoted Shannon Remaley, NCIDQ, LEED GA from project manager and director of Living Studio Interiors to principal. Remaley leads the strategic direction and vision for the Interiors and FF&E group in Meyer’s nationally recognized Living Studio.

According to a press release, Remaley’s ability and passion to design, implement and manage complex new construction and renovation projects, has earned her and her team repeat client relationships with not-for-profit and forprofit entities.

“As a demonstrated leader in her field, Shannon has a passion for enriching the environments for residents by providing the best design solutions for our clients through collaboration, innovation and education,” said Meyer CEO Norman Liedtke.

“Shannon’s dedication to her craft and clients, along with her distinct talent for designing within the built environment, truly sets her apart. We could not be more thrilled to promote Shannon to principal at Meyer. As a cornerstone of our Living Studio practice, Shannon brings an unrivaled level of value to the national and local accounts she manages. Her understanding of their complexity and sensitivity earns her the trust of top-level executives at some of the country’s largest senior living, active adult and multi-family developers, owners and operators.”

With more than 17 years of experience, Remaley’s career in interior design has spanned through projects from New England to Florida. She has won national design award competitions, such as the Environments For Aging (EFA) Renovation/ Remodel Award, and has been featured as a panelist at national conferences.

Remaley’s tenure at Meyer has been more than six years, with stops at STV Architects and DesignPoint, Inc. prior to joining Meyer. She is a graduate of Drexel University where she achieved a Bachelor of Science in interior design with a minor in dance. She obtained her National Council for Interior Design Qualification (NCIDQ) certification in 2005.

ERIE FCU WELCOMES TWO NEW BOARD DIRECTORS

Erie Federal Credit Union (Erie FCU) recently announced the appointment of two new Board Directors, Richard Macer and Joseph Rys. Both Macer and Rys had previously served as Associate Board Members. “Rick and Joe have provided invaluable insight, enthusiasm and direction during their time as Associate Board Directors,” said Erie FCU CEO Brian Waugaman, in a press release. “We are pleased about their appointments and look forward to their contributions to our future growth and success.”

Rys, who is a chartered financial analyst (CFA) and a certified public accountant (CPA), serves as a portfolio manager/ Investment Division with Erie Insurance, and Macer is a subcontractor/media specialist with International Paper.

The Board of Directors is comprised of seven members of Erie FCU who are guided by the credit union philosophy of “People Helping People.” Elected by its members, Erie FCU’s volunteer board helps set the strategic direction of the credit union and oversees its fiduciary responsibility.

Erie FCU has grown its membership to over 60,000 with assets of more than $500 million. The credit union has 178 full- and part-time employees with a home office and nine branch locations.

REED ADDS REINECKE AS REGIONAL MANAGER FOR SOUTHEAST UNITED STATES

Reed Manufacturing recently welcomed Dan Reinecke as its new regional manager for its Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee markets. In this role, he will serve key REED accounts, work with manufacturer’s reps, and focus on developing new business in the seven-state area.

Before joining REED, Reinecke worked for Kapro Tools as OEM sales manager and for 10 years at Milwaukee Electric Tool, serving as district sales manager for its Western New York/Northwest Pennsylvania markets. Additionally, he served as sales and project manager for Nesaru Consulting out of Wisconsin. Now transplanted to the Southeast United States, Reinecke is looking forward to meeting and providing outstanding service to current customers plus introducing new customers to the scope and quality of the REED product line.

mbabizmag.com • AUGUST 2019

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AUGUST 2019 • mbabizmag.com

Established in 2003, Barnhart Transportation was founded by brothers Bryan and Tim Barnhart. Over the last 16 years, Barnhart has grown its fleet from two to over 180 trucks and expanded its capabilities to include 70,000 square feet of warehouse space, a domestic freight brokerage and international freight forwarding company.

With three locations strategically located across the United States, Barnhart offers end-to-end logistics support to customers touching every aspect of their supply chain. With a diversified portfolio of trailer assets, the company specializes in moving flat bed, over dimensional, non-hazardous liquid, dry bulk and van freight.

Locations in Pennsylvania, South Carolina and Texas HEADQUARTERS 9251 West Main Rd., North East, PA 16428 PHONE: (814) 347-5254 • FAX: (814) 347-5156

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HR CONNECTION | WORKPLACE TRENDS SURVEY: STRESSFUL WORK COMMUTES WEIGH HEAVILY ON GEN ZERS

Many young professionals have long commutes because their workplaces are in areas that are too expensive for them to live in, according to a Randstad US and Apartment Guide survey.

While a quarter (24 percent) of all the 1,200-plus workers ages 18 to 45 surveyed say they live far from their jobs because they can’t afford to live nearby, Gen Zers are the most affected, with 43 percent saying this is true.

“Affordability is a major concern for today’s renters, whether in a big city or rural town,” says Emily Williams, senior data analyst for Apartment Guide.

“Our data shows that average national rent prices have increased by more than 4 percent over the past year, but in some places, the increase is much higher.”

Brush Up On Dental Health For Your Little Ones Did you know you can start dental visits when your child is a baby?

Consider an initial visit to a pediatric dentist before your child turns 1. A pediatric dentist can examine your child’s teeth, review proper oral care instructions and identify decay or signs involving early dental development.

Infant Teeth Care at Home Teeth are vulnerable to decay as soon as they appear in the mouth. When your child’s first tooth comes in, it’s time to start practicing good oral care habits.

• After every feeding, wipe your baby’s teeth and gums clean with a soft, damp washcloth or gauze pad.

Half (50 percent) of Gen Zers say they have more than one job to supplement their salary so they can afford their housing costs, compared to 28 percent of all workers.

Nearly half (47 percent) of Gen Zers often skip work events that extend after hours because of their long commute, and 42 percent say their commute negatively impacts their mood and productivity at work. And a third (33 percent) have actually gotten into DWW — ” Driving while Working” — accidents because they were checking work emails, texts or calls while in traffic.

A fair amount of workers (35 percent) telecommute, but many respondents admit to distractions and difficulty disconnecting when working from home.

Nearly half (44 percent) actually prefer working in the office because it’s easier to disconnect from their jobs.

• Avoid letting your baby fall asleep with a bottle. Sugars and acids in milk, formula or fruit juice can pool around the teeth, causing discoloration and decay. Since breast milk contains sugar, decay also can occur when a baby falls asleep while breast-feeding.

REPORT: COMPANIES THAT SPEND MORE ON TRAVEL REAP MAJOR AWARDS

• Give your baby fluoridated water to help reduce tooth decay. If you don’t have access to a fluoridated water supply, use fluoride tablets, drops or gel. You can also have topical fluoride treatments applied at the dental office.

Companies that spend more on travel reap major rewards, particularly in terms of customer loyalty, employee satisfaction and market share, according to a report from the Harvard Business Review and travel management company Egencia.

• Ensure your baby has a balanced diet that’s low in sugar and starch and high in calcium. Milk, cheese and yogurt are calcium-rich and help build strong teeth.

The report surveyed 587 business leaders, mainly in North America and Europe, on their company’s travel culture and the impact it had on their organizations’ business performance over the past year. Nearly half of respondents who reported a strong travel culture, one in which travel was seen as an investment opportunity rather than a cost to be minimized, reported significant business improvements.

Dental Care as Kids Grow By age 3, children should be brushing their own teeth under adult supervision.

Daily flossing should start once all the primary teeth are in or when teeth are touching each other. By age 8, kids should be able to brush and floss by themselves, with occasional checks.

It’s recommended that children see a dentist every six months, just like adults should.

Visit deltadentalins.com/oral_health for additional information about caring for young teeth and other oral health topics.

“Companies with a strong travel culture had double the rate of improvement in key areas such as customer loyalty and retention (50 percent vs. 21 percent), market share (43 percent vs. 22 percent), and employee satisfaction (35 percent vs.

15 percent), compared to companies with a weak travel culture,” the report states.

Lisa Wagner, DMD, MPH, is the dental director for Delta Dental of California’s enterprise, which includes Delta Dental of Pennsylvania and its affiliated companies. These companies are members or affiliates of members of the Delta Dental Plans Association, a network of 39 Delta Dental companies that together provide dental coverage to 78 million people across the country.

This extends to profitability as well: Companies with a strong travel culture reported a 47 percent improvement in profitability, compared to 29 percent improvement for companies with a weak travel culture.

mbabizmag.com • AUGUST 2019

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MAKING A DIFFERENCE DIVERSE PRODUCTS AND SERVICES For more than 92 years, Loesel-Schaaf Insurance Agency, Inc. has been an independent multi-line insurance agency, offering a wide array of products and services. Growing to four separate divisions, encompassing just about every insurance need possible, the Agency has become one of the largest “one-stop shops” for businesses and individuals across the tri-state area and beyond.

“Having a professional staff averaging 25 years of insurance industry experience, we effectively solve problems for our clients,” says Doug Loesel, President.

“We have a vast reservoir of knowledge from which to draw and a team approach is often utilized. Someone on staff has most likely tackled just about any challenge and together we can find a solution.”

Because circumstances change, Loesel-Schaaf offers a complimentary review of policies, personal or business, to ensure adequate protection.

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AUGUST 2019 • mbabizmag.com

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HR Q&A | GET ANSWERS IF AN EMPLOYEE IS CALLED IN AFTER HOURS FOR AN EMERGENCY, DO YOU PAY THE EMPLOYEE FROM THE MOMENT HE LEAVES HOME, OR DO YOU “START THE CLOCK” WHEN HE ARRIVES AT WORK? If the employee is traveling to a customer facility, you must start the clock when he leaves home.

However, if the employee is reporting to a regular company location, the answer is unclear. The federal Wage & Hour Division has literally refused to offer guidance. The “safe” option is, therefore, to start the clock when the employee leaves home.

Here is the applicable regulation: 29 CFR §785.36 — Home to work in emergency situations. There may be instances when travel from home to work is overtime. For example, if an employee who has gone home after completing his day’s work is subsequently called out at night to travel a substantial distance to perform an emergency job for one of his employer’s customers, all time spent on such travel is working time. The Divisions are taking no position on whether travel to the job and back home by an employee who receives an emergency call outside of his regular hours to report back to his regular place of business to do a job is working time.

Essentially, the issue has been left up to states (or courts) to decide on a case-by-case basis. Most state labor agencies will accept wage claims for unpaid working time and could rule either way.

Often, state agencies take a position that is most favorable to the employee. The safest course of action, therefore, is to start the clock when the employee leaves home.

DO WE HAVE TO PAY EMPLOYEES FOR COMMUTING TO AN ALTERNATE WORKSITE? You have to pay an employee for all hours worked, which may include travel that is longer than an employee’s ordinary commute. An employee’s initial drive from home to alternate worksites within the usual business area should not have to be paid, but occasional driving to a distant location may extend beyond an ordinary commute.

The regulation for how the federal government pays its employees allows for this subtraction, and you should be able to adopt a similar standard.

That regulation is 5 CFR § 551.422, Time spent traveling, where paragraph (b) states: An employee who travels from home before the regular workday begins and returns home at the end of the workday is engaged in normal “home to work” travel; such travel is not hours of work. When an employee travels directly from home to a temporary duty location outside the limits of his or her official duty station, the time the employee would have spent in normal home to work travel shall be deducted from hours of work.

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AUGUST 2019 • mbabizmag.com

On or Off the Clock: Is Preparatory and Concluding Activities Paid Time?

Employees must be paid for all working time, but the Fair Labor Standards Act (FLSA) does not specifically define “work.” However, the regulations do describe activities that count as “hours worked” including travel time, meeting time and certain preparatory and concluding activities (like donning personal protective equipment or otherwise getting ready for the job).

Generally, activities performed before or after the employee engages in regular job tasks must be counted as work if they are “principal activities.” This term is not specifically defined either, but the regulations do give examples as follows: 1) A lathe operator will frequently, at the start of his workday, oil, grease or clean his machine, or install a new cutting tool. These are principal activities — they are necessary for the job and they benefit the employer, so the employee must be paid for time spent performing these tasks.

2) A garment worker in a textile mill must report 30 minutes before other employees to distribute clothing at workstations and prepare the machines for operation by other employees. These are principal activities, and the employee must be paid for the time.

3) If an employee in a chemical plant cannot perform his principal activities without putting on certain clothes, then changing clothes at the beginning and end of the workday is a principal activity.

If changing clothes is merely a convenience to the employee and is not directly related to his principal activities, it is not a principal activity. For example, if a carpenter chooses to change clothing to keep his street clothes from getting dirty, he does so for his own benefit, not for the employer’s benefit. The time spent changing clothes (for the employee’s own benefit) would not count as working time.

Two cases decided by the U.S. Supreme Court further illustrate the activities that are considered an integral part of employees’ jobs. In one case, employees changed their clothes and took showers in a battery plant where the manufacturing process involved the extensive use of caustic and toxic materials. In another, knifemen in a meatpacking plant sharpened their knives before and after their scheduled workday. In both cases, the Supreme Court held that these activities are an integral and indispensable part of the employees’ principal activities.

In short, activities must be counted as hours worked if they are indispensable to the performance of an employee’s work or are required by law or by the rules of the employer (such as OSHA regulations that require personal protective equipment). If preparatory and concluding activities are necessary for the job, and are performed for the benefit of the employer, they are regarded as “work” and are compensable under the FLSA. For more information, contact the Association’s HR Hotline at 814/833-3200 or 800/815-2660.

Stacey Bruce, SPHR, SHRM-SCP, is the director of HR Services at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or sbruce@mbausa.org.

Klapec Trucking Co. 1643 Allegheny Blvd., Reno, PA 16343 Phone: 814/676-1512 office, 800/458-2225 / 888-8-KLAPEC toll-free Fax: 814/676-8854 www.klapectrucking.com

CO M PAN Y PR O FIL E

Klapec Trucking Co. Celebrates 70 Years of Reliable Service Klapec Trucking Co. (KTC) of Reno, Pennsylvania is celebrating 70 years of reliable transportation service. From the humble days of 18-year-old Bert Klapec and a single dump truck hauling coal and gravel locally, to a fleet of modern tractor trailers equipped with today’s most advanced technology, times certainly have changed.

“The key to our longevity is very simple,” says Vice President Greg Lander. “We do what we say we are going to do. When a customer asks us to provide a service for them, no matter how complex, our team will do whatever is necessary to make sure that customer is completely satisfied. Our reputation has been built on that simple principle since my Grandfather Bert started this business 70 years ago, and we continue to maintain that philosophy to this day.”

Now in its third generation, the family business has continued to operate with Bert’s daughter Cindy Urban. Today, Bert’s grandchildren — Greg, Tracy, Marc, and Bridget — are leading KTC into the future. “Our vision for the future certainly is bright with the next generation. We will continue to grow, provide employment and service our many customers here and across the country transporting cargo for the industrial community with outbound shipments of processed goods, and inbound shipments of raw materials,” says Cindy.

Investment in All Areas Keeps Klapec Trucking Co. Strong Community: KTC is one of the top 50 employers in Venango County.

In fact, Klapec Trucking Co. continues to solidify its commitment to the NWPA region with the recent purchase and upgrading of a blighted building in Reno, recent paving of the main terminal and doubling the main office complex space.

adaptive cruise control. KTC’s world-class technicians stay on top of the constant, quickly changing technology. Drivers use mounted in-cab tablets to record Hours of Service and to communicate with dispatchers. Various apps aid in job efficiency. The company’s Facebook page keeps current with company events and posts. Prospective drivers are able to apply quickly and easily online on the company’s website.

Equipment: KTC boasts a force of 80 trucks and 175 trailers. Trucks are equipped with a refrigerator, inverter and dinette, which can transform into a bed. Its diverse fleet of trailers allows KTC to service many types of customers and cargo — from small one-pallet expedited shipments to over-dimensional loads with the company’s wide range of aluminum flat-bed trailers, 53-foot vans, roll-offs, drop decks, heavy duty low-boys, extendables and double-drop extendables. KTC also has a two-pallet-enclosed van along with 9-feet and 24-feet flat-bed straight trucks for smaller shipments. KTC does it all and safely!

Safety: KTC’s safety director is committed to the safety and compliance of the company’s fleet and drivers. For more than 14 years, the Klapec Trucking Company has continuously earned numerous safety awards in multiple categories, including excellence from the Pennsylvania Motor Truck Association (PMTA), its insurance carrier and various customers. These awards include the President’s Award, which is the highest award for safety to be earned from the PMTA, making KTC the safest carrier in Pennsylvania.

People: Klapec Trucking Co. employs more than 100 people from surrounding communities and continually invests in professional development and training. KTC Vice President Greg Lander and Operations Manager Marc Lander both have attended Leadership Venango training. “Sometimes you have to get out of your world of focus, which for us is transportation, to hear different viewpoints, to understand different perspectives and to bring this new way of thinking back to KTC which benefits all of us,” says Marc.

At KTC, employees are its greatest asset, and many of its team members have spent their entire career with the company. Klapec Trucking Co. also has maintained a profit-sharing plan for decades and offers one of the most competitive pay systems in the trucking industry. “We are proud of the longevity here at KTC and proud to provide employment and a healthy wage to raise and sustain the families in our area,” adds Marc.

Technology: At KTC, technology is embraced in all areas — from office to shop — and for drivers, includes the purchase of the newest amenities available on trucks, such as lane departure modules and

mbabizmag.com • AUGUST 2019

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Erie Metropolitan Transit Authority Always Going Your Way!

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The Regional Career & Technical Center is a leading provider of quality career and technical training programs for adults. We offer a variety of courses, affordable tuition and convenient class schedules.

TAA/WIOA AND PA CAREERLINK APPROVED CLASSES Term I classes begin the week of September 3.

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www.Ride-The-E.com 814-452-3515

Visit www.rctcerie.org for a complete course schedule or call 814.464.8601 for more information.

NOW! RIDE the e, TAKE ROUTE 3!

The RCTC is a division of the Erie County Technical School, an equal opportunity educational institution.

Northwest PA & Southwest NY’s

First Choice Contractors & Construction Managers Since 1906 814.454.7147 | www.eeaustin.com EE Austin & Son offers a dynamic management team committed to providing construction excellence.

Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906.

EE Austin & Son remains steadfast in its century old promise to...

“Do the right thing...all the time.”

It’s the Austin Difference.

Healthcare • Education • Institutional • Retail • Hospitality • Industrial • Concrete

22

AUGUST 2019 • mbabizmag.com

Eugene Cirka Vice President & Senior Business Banker

Terry Danko Assistant Vice President & Business Banker John Dill Senior Vice President of Business Banking

Jon Patsy Vice President & Business Banker

New Team Member Daniel Walsh Business Banking Representative New Team Member

Sarah Giambanco Business Banking Representative

Katrina Vincent Business Banking Representative

It all adds up

Numbers tell the story.

For Marquette Business Banking, it’s a story of growth.

Growth that can only come from the success of our customers.

Thirty-one new Business Banking customers added last year.

Ten straight years of record-breaking growth.

The difference is in our people.

Professionals who have seen just about every situation and have a reputation for getting things done.

And now, we are pleased to announce the addition of two new team members who share that same reputation – Katrina Vincent and Dan Walsh.

It all adds up to an exceptional team MpoweredTM to help your business succeed.

Schedule an appointment today at MarquetteSavings.bank/business.

ERIE 920 Peach Street | 814.455.4481

MEADVILLE 953 South Main Street | 814.337.7929

IMPACT Manufacturer & Business Association

2019 Thursday, August 8 11:30 a.m. to 1 p.m.

ERIE: MBA Conference Center, 2171 West 38th Street $30 per person (lunch included)

REGISTER AT MBAUSA.ORG

24

AUGUST 2019 • mbabizmag.com

MIND THE WORKPLACE

EFFECTIVE STRATEGIES TO MANAGE WORKPLACE STRESS AND CREATE A POSITIVE WORK CULTURE PRESENTED BY:

EVENTS & EXTRAS | NETWORKING & MORE

The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events or to view the MBA’s photo gallery, visit www.mbausa.org.

EVENTS

neys presents on How to Dan Miller of MacDonald Illig Attor ration at the Association’s Prepare for Grievances and Arbit rence Center in Erie.

HR Lunch & Law at the MBA Confe

Jamie Schumacher of MacDonald Illig Attorneys takes questions at the HR Lunch & Law briefing.

gs Bank shares an Stella LaPaglia of Marquette Savin cting quality employees employer’s perspective on attra and digital media. by better utilizing their website

Brian Amick, co-founder and creative partner at WerkBot Studios, talks about the role an organization’s website and digital media can play in helping to recruit and retain top talent, during a recent HR forum at the Manufacturer & Business Association.

Rocco Bernardoni, director of business development for Nexs tar Digital Agency Services, explains why businesses need to be more thoughtful and strate gic when investing in traditional and digital adver tising tactics to get the highest retur n possible.

mbabizmag.com • AUGUST 2019

25

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

HERE’S THE

PLAN WHEN THE HAPPINESS OF YOUR EMPLOYEES DEPENDS ON THE NETWORK OF YOUR HEALTH PLAN, CHOOSE US. The success of any organization depends greatly on the health and happiness of its employees. That’s why it’s so important to choose the right health coverage. With UPMC Health Plan, your employees get affordable in-network access to the doctors and hospitals they trust. And you get a health plan that makes sense for your company.

Call your producer or visit upmchealthplan.com/employer

Highest Member Satisfaction in Pennsylvania

“Highest Commercial Satisfaction, Three Years in a Row!”

Network

Service

Affordability

–J.D. Power

UPMC Health Plan received the highest score in Pennsylvania in the J.D. Power 2016-2018 U.S. Member Health Plan Satisfaction Studies of customers’ satisfaction with their commercial health plan. Visit jdpower.com.

Nondiscrimination statement UPMC Health Plan1 complies with applicable federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, sex, sexual orientation, gender identity, or gender expression.

UPMC Health Plan is the marketing name used to refer to the following companies, which are licensed to issue individual and group health insurance products or which provide third party administration services for group health plans: UPMC Health Network Inc., UPMC Health Options Inc., UPMC Health Coverage Inc., UPMC Health Plan Inc., UPMC Health Benefits Inc., UPMC for You Inc., and/or UPMC Benefit Management Services Inc.

1

Translation Services ATENCIÓN: si habla español, tiene a su disposición servicios gratuitos de asistencia lingüística. Llame al 1-855-489-3494 (TTY: 1-800-361-2629). 注意：如果您使用繁體中文，您可以免費獲得語言援助服務 。請致電 1-855-489-3494 (TTY: 1-800-361-2629)。