QUARTERLY BUSINESS JOURNAL FINANCIAL
Special Report inside.
New Location: United Auto Supply hopes to build new distribution center. Page 2. N
Vol. XXVI • No. 6
February 10, 2012
O’Brien & Gere plans to double work force in Charleston office
D’Arcangelo & Co. obtains a physical presence in Syracuse
BY KEVIN TAMPONE JOURNAL STAFF
BY TRACI DELORE JOURNAL STAFF
SYRACUSE — It started as a casual encounter at a Syracuse Chiefs game, but the end result is the merger of two established Central New York accounting firms — a move that expands the scope of expertise at both firms. D’Arcangelo & Co., LLP, based in Utica, and Syracuse–based Kruth, Stein, Squadrito, Liberman & Silverman, LLP (KSSL&S) merged operations under the D’Arcangelo name effective Jan. 1. Terms of the deal were not disclosed. “D’Arcangelo has been desirous of having a physical presence in Syracuse,” Practice Manager Diane Fowler says of the merger. The firm wasn’t necessarily actively seeking a merger, but when some partners from D’Arcangelo bumped into some partners from KSSL&S at a baseball game in the summer of 2011, the conversation started flowing. The merger just made sense on several levels, Fowler says. D’Arcangelo already has a client See MERGER, page 13
PHOTO COURTESY OF O’BRIEN & GERE
SYRACUSE — The acquisition of Lindbergh & Associates of Charleston, S.C. will help Syracuse– based O’Brien & Gere continue to grow its work with the federal government in the Southeast and elsewhere, company leaders say. O’Brien & Gere acquired the remaining 55 percent ownership stake of Lindbergh in December. The firm previously owned 45 percent, with Lindbergh President Tony Price owning the rest. The companies first began working together on some joint projects in 2003. Over the years, O’Brien
O’Brien & Gere employees work together on a project at the company’s Charleston, S.C. office, the former Lindbergh & Associates.
See OBG, page 4
KS&R’s INSITE contact center takes advantage of downtown Syracuse move BY RICK SELTZER JOURNAL STAFF
SYRACUSE — KS&R, Inc. brought nearly 200 of its employees close to home last month by relocating its INSITE survey contact center. It’s so close that
those employees can reach the market-research firm’s downtown Syracuse headquarters by crossing the street. “That’s all I hear, how nice it is to be able to walk and go back and forth,” says Joseph Snyder, KS&R principal. “We’ve been
there one month now, and it’s been huge.” The contact center’s new home is in the Syracuse Building at 224 Harrison St., while KS&R’s headquarters is in the nearby AXA Towers. KS&R moved the contact center from its previous home
at 5792 Widewaters Parkway in DeWitt on Jan. 2. The move brings 185 employees, who work in the contact center, to downtown Syracuse. The center runs a day shift from 8 See KS&R, page 4
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February 10, 2012
• The Central New York Business Journal
CNYBJ.COM BRIEFS News of note for and about Central New York businesses
Pathfinder profit declines in fourth quarter, full year OSWEGO — Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank, earned $436,000, or 10 cents a share, in the fourth quarter, down more than 57 percent from a year earlier. The decline was mainly the result of $155,000 in life-insurance proceeds the company received during the fourth quarter of 2010 in connection with the death of a former director, according to Pathfinder. For the full year in 2011, Pathfinder earned $2.3 million, or 53 cents a share, down from $2.5 million, or 82 cents a share, in 2010. “The reduction in earnings from the prior year reflects both lower asset yields from a flattening yield curve, and higher costs associated with our new Cicero branch, as well as increased costs related to employee benefit plans and our participation in the Small Business Lending Fund,” Pathfinder President and CEO Thomas Schneider said in a news release. “The more positive metrics are the continued strong, balanced, and diversified growth within our loan and deposit portfolios. That growth, which is well in excess of market growth, demonstrates our commitment to quality customer service and strengthens our balance sheet for future earnings within a cyclical interest rate environment.” Pathfinder has total assets of $443 million and eight branches in Oswego and Onondaga counties.
United Auto Supply hopes to build distribution center on former Bossert site By Traci DeLore
United Auto Supply, currently located in New Hartford, hopes to purchase the Bossert site in Utica, below, to build a new distribution center.
UTICA — A Syracuse businessman could breathe new life into the Bossert site located just off Route 12 in Utica. James Ranalli, CEO of Syracuse–based United Auto Supply, which has a location in the New Hartford Shopping Center, hopes to purchase the roughly 7-acre Bossert site and build a new distribution center there for his wholesale auto-parts business. The site, with easy access to Route 12 and the nearby New York State Thruway, is perfect for a company that guarantees delivery within 29 minutes of receiving an order, Ranalli says. “This [site] has very good accessibility.” Ranalli has been meeting with city officials, with everyone doing their due diligence in hopes of moving the deal forward, he says. The city of Utica owns the property and the city’s Urban Renewal Agency board approved Ranalli’s preliminary development plans for the site on Jan. 25. The sale price is $130,000. Ranalli’splansincludebuildinga20,000-squarefoot distribution center for United Auto Supply, along with a 20,000-square-foot facility for Tracey Road Equipment, a Henrietta–based construction-equipment sales and rental company. The plan also includes a 2-acre out-parcel that Ranalli hopes will attract other businesses, such as a grocery store or a convenience store. Ranalli is working with David Baritell, an associate broker with Realty USA in Fayetteville, to develop that portion of the project. Meetings with the city of Utica, the state Department of Transportation, the Department
traci delore/The central new york Business Journal
of Environmental Conservation (DEC), and city planning and zoning officials continue in order to gain all the necessary approvals, Ranalli says. But if everything goes as he hopes, he’ll be able to close on the property within the next 45 days and break ground by late summer. The process thus far has been both timeconsuming and costly, he says. He’s already invested more than $100,000 for preliminary design work and reviewing all the environmental documents pertaining to the site. Ranalli hired Albany–based engineering firm Clough Harbour & Associates, which has an office in Syracuse, to work on the project. Once home to Bossert Manufacturing, the site at 1002 Oswego St. has been vacant since the metal stamping, welding, and fabricating
company closed in 1985, according to the DEC. The site once contained a 210,000-square-foot production facility and was contaminated with polychlorinated biphenyls (PCBs), mercury, petroleum products, and contaminated waste. The DEC placed the site on the Superfund list in 1986 and the city of Utica acquired it in 1987. After a more than $20 million clean-up effort, the DEC removed the site from the Superfund list and declared it free of contamination and ready for redevelopment in 2008. The site is assessed at $23,000. Now Ranalli hopes he gets the Utica Common Council approval he needs to move forward with his redevelopment plans, which See ranalli, page 5
Sara C. Temes Has Been Elected A Member Of The Firm. Ms. Temes is a graduate of Wellesley College (B.A., cum laude, 2000) and the University of Pennsylvania Law School (J.D., 2003).
Hemisphere announces sale of apartment complex, land in Lyons LYONS — Hemisphere Holdings Corp. recently announced the closing of the sale of the Sohn Alloway Estates Apartments property located at 947 Sohn Alloway Road in Lyons. The apartments consist of 18 units, located on 12 acres of land that could accommodate up to 80 more units. The property was sold by Erie Meadows Development Co., LLC to an undisclosed buyer for $1.1 million, according to Syracuse–based Hemisphere. M&T Bank financed the sale. Richard L. Will, president of Hemisphere, brokered the transaction.
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The Central New York Business Journal • 3
February 10, 2012
Cayuga County Chamber rolls out two initiatives to help business owners BY RUQING PAN CONTRIBUTING WRITER
AUBURN –– The Cayuga County Chamber of Commerce, founded 104 years ago, recently announced the launch of two new projects aimed at helping small-business owners. The Cayuga and Seneca Counties Community Profile project has created a web-based tool that brings together accessible sources of 70 different statistical indicators that would measure important community indicators, such as employment, education, and health and safety for six counties. The Community Profile website provides data, analysis, and grants, as well as tables and charts that can be downloaded in customized formats. Andrew Fish, executive director of the Cayuga County Chamber of Commerce, says the Community Profile project was funded or made possible by the United Way of Cayuga County, the United Way of Seneca County, the Allyn Foundation, the City of Auburn, and Cayuga Community College. It is available for anyone in the community to access and utilize. The Community Profile project (cayugasenecaprofile.org) has the potential to increase the capacity of nonprofits, government agencies, and businesses to leverage funding and to improve their ability to plan, Tim Kelly, executive director of United Way of Cayuga County, said at the Cayuga County Chamber of Commerce’s 2012 Economic Forecast Luncheon on Jan. 26 in Auburn.
Andrew Fish, executive director of the Cayuga County Chamber of Commerce, addresses the audience at the Chamber’s 2012 Economic Forecast Luncheon on Jan. 26.
RUQING PAN/The Central New York Business Journal
The United Way contracted with the Center for Governmental Research, Inc. (CGR), a Rochester–based nonprofit provider of research to government and organizations, to develop the data and indicators on the Community Profile project’s website. “We know that our communities in Cayuga County and Seneca County face diminishing resources that have a direct impact on quality of life. So data, good quality data, and accessible data are essential to good decision-making and to better planning,” Kelly said. “For government, com-
munity organizations, and business, data can address their need to more rapidly and more effectively obtain funding.”
Along with the launch of this interactive Community Profile project, the Cayuga County Chamber of Commerce also announced the launch of the Finger Lakes Grants Information Center, a regional center that provides the access to data and resources on potential grants from government agencies and service providers.
The Grants Information Center will provide training opportunities to educate and support grant-seekers about fundraising, philanthropy, and grant-writing, Ginny Kent, supervisor at the Grants Information Center and membership coordinator at the Cayuga County Chamber, said at the 2012 Economic Forecast Luncheon, which attracted a crowd of about 150 people. “It is really important not only to understand the process of developing grant proposals, but also to understand the field of philanthropy and to understand what your potential founders are looking for when you come to them,” Kent said. Fish contends the Community Profile project dovetails perfectly with the Grants Information Center. He says the Chamber of Commerce mobilized to secure grant funding through the Stardust Foundation to launch the Grants Information Center, recognizing that once the indicators came online, people would need some additional resources to foster improvements in the areas the data measures, such as salary by sector, change in number of businesses by sector, and job growth. “Not only do they have the data, now they can [also] learn how best to use that and how best to interpret it,” he says. They can see “what are some funding opportunities that are out there, whether they are through other foundations or through government agencies, or philanthropy and other things that they can go after to meet See initiatives, page 14
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February 10, 2012
• The Central New York Business Journal
OBG: O’Brien & Gere will continue to use the Lindbergh brand, along with its own name Continued from page 1
& Gere made a series of investments in Lindbergh, says Lee Davis, O’Brien & Gere president and chief operating officer. O’Brien & Gere was looking to ramp up its business with the federal government and Lindbergh had a strong base of federal work, Davis says. The plan was for O’Brien & Gere to acquire Lindbergh in full once Lindbergh grew larger. O’Brien & Gere leaders decided to pursue more federal work as the firm’s state and local government clients were facing stiff budget pressures. And while the federal budget faces its own fiscal challenges, the government remains an enormous potential customer, according to the company. Also, O’Brien & Gere’s overall share of the federal market is small, leaving plenty
of room to expand, company leaders have said. O’Brien & Gere now has 40 employees in its 8,000-square-foot Charleston office and about two-thirds of them are from Lindbergh, says Richard Garcia, senior vice president and general manager of the Charleston office. The firm plans to double the work force in that office in the next two to three years, Davis adds. When O’Brien & Gere first opened in Charleston in 2003, it employed one person in the market. Lindbergh had three employees at the time. Lindbergh was founded in 1982. It provides planning, design, and management services for federal, state, municipal, and commercial clients throughout the U.S. Services include architecture, interior design, landscape architecture, structural en-
gineering, land surveying, civil engineering, master planning, and construction management. O’Brien & Gere provides a range of engineering and other services. The firm employs 850 people at 30 offices throughout the country. O’Brien & Gere will continue to use the Lindbergh brand, along with its own name, in the Charleston market for some time, Davis says. Lindbergh has a strong reputation in the region as well as in the federal market. Charleston is a key location for O’Brien & Gere, Davis says, and serves as the hub for the firm’s federal business in the Southeast. The city’s port is planning a major expansion to accommodate larger ships, which should provide plenty of opportunities for industrial and commercial work as well, he notes.
The Navy and the Air Force both have a strong presence in the region, Garcia adds. And while Lindbergh has been focused mainly on the federal sector in the past, it will now be able to expand into other O’Brien & Gere business areas like water, energy, and environmental projects. The two firms have worked together on more than 1,000 projects since they first teamed up, Garcia says. They have worked throughout the Southeast and elsewhere, including on a wastewater study for West Point. The addition will bolster O’Brien & Gere’s business in other regions, Davis says. Lindbergh’s resources should aid projects with clients like Fort Drum and the Department of Veterans Affairs. Contact Tampone at email@example.com
KS&R: INSITE is a full-service, in-house resource center for collecting data and managing information Continued from page 1
a.m. to 5 p.m. and an evening shift from 5 p.m. to 11 p.m., according to Snyder. It also operates some weekend shifts to support consumer calling, he says. INSITE is a full-service, in-house resource center for collecting data and managing information. Its services range from recruiting for focus groups to conducting interviews with senior business executives. The center’s new location is 6,700 square feet, which is smaller than its previous space in DeWitt. That office space was 7,500 square feet. Even though the new contact center has a smaller footprint than KS&R’s former space
in DeWitt, the company did not lay off any employees when it moved, Snyder says. “We were able to reduce the square footage because it’s a more efficient space,” he says. “Our old space was chopped up. It was originally set up as a call center, but we added to it over the years.” The new center has a large open floor plan, which will help employees work together, according to Snyder. KS&R considered keeping the center in DeWitt before opting to move to Syracuse because the space was more efficient and closer to its headquarters, he adds. KS&R started evaluating its contact-center space at the beginning of 2011. It looked at a number of issues before deciding to relocate, including making sure employ-
ees would have enough space for parking, Snyder says. “We utilize what I would call the old Hotel Syracuse parking garage, and we also have spots in the back of the building and the Harrison Street garage,” he says. The new facility required new floors, moving some walls, and rewiring for data networks and telecommunications. KS&R worked with its landlord, Syracuse–based JF Real Estate, to select new carpeting and tiling, Snyder says. JF Real Estate coordinated renovations, according to Snyder, who called the work “relatively minor.” He declined to share the cost of renovations. He also declined to disclose revenue totals and projections. KS&R does not an-
ticipate any major changes to the size of its operations, he says. KS&R employs about 275 people worldwide, Snyder says. It has offices in Syracuse; the metropolitan New York City area; Atlanta; Memphis, Tenn.; Frankfurt, Germany; and Asia. Its Syracuse headquarters in the AXA Tower II in Syracuse is 23,000 square feet and has 75 employees. KS&R performs worldwide market research and consulting in the technology, telecommunications, transportation, medical devices, health-care, retail, and finance/ insurance industries. It was founded in 1983 and is privately held by 11 owners. Contact Seltzer at firstname.lastname@example.org
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The Central New York Business Journal • 5
February 10, 2012
Hiscock & Barclay launches new practice group By Kevin Tampone Journal Staff
SYRACUSE — Law firm Hiscock & Barclay, LLP of Syracuse is forming a new practice area aimed at work in white-collar criminal defense and government investigations. Daniel French, a former U.S. attorney, and his partner, Lee Alcott, have both joined Hiscock as of counsel. French will co-chair the new group with Gabriel Nugent, a current Hiscock partner. French French and Alcott will remain principals of their existing firm, French-Alcott, PLLC of Syracuse. French-Alcott and Hiscock have been working together on white-collar cases for about six years Alcott now, Nugent says. Consistent demand for the work prompted the firms to formalize their relationship. The practice will focus on criminal and civil cases at the federal, state, and local level, Nugent says. It Nugent
The practice will focus on criminal and civil cases at the federal, state, and local level, Nugent says. It could include everything from cases involving mortgage regulations, allegations of health-care fraud, insider trading, and more. could include everything from cases involving mortgage regulations, allegations of health-care fraud, insider trading, and more. Prosecutors have been dusting off a number of older laws in those areas recently and using them to pursue new and different targets in investigations, Nugent adds. “Really, that’s occurring all throughout the country in a number of different areas,” he says. Attorneys will also try to help clients avoid ending up under investigation in the first place, French says. Regulations in fields like health care change all the time, he notes.
“A decent portion of what we do is communicate with our clients and make sure they understand the current regulatory framework,” he says. Hiscock & Barclay’s new white-collar defense and government-investigations practice includes nine attorneys, including former prosecutors and a former regional director of a state Medicaid fraud unit. The group will also work with attorneys in other Hiscock practice areas if needed. “It complements a lot of different areas,” Nugent says. Hiscock may look to add more lawyers to the group in the future, especially in areas that require specialized expertise like cybercrime and matters involving imports and exports, Nugent adds. In addition to his work as U.S. attorney for the Northern District of New York, French was an assistant U.S. attorney as well as a law clerk for a federal judge. He has also served as a deputy staff director to the U.S. Senate Finance Committee and executive assistant to U.S. Sen. Daniel Patrick Moynihan. Alcott previously served as director of the litigation department at another Syracuse law firm and was also chief trial counsel for the city of Syracuse. Hiscock & Barclay has 200 attorneys in 31 practice areas. The firm has offices in Albany, Buffalo, New York City, Rochester, Boston, Toronto, and Washington, D.C. Contact Tampone at email@example.com
located in New Hartford Continued from page 2
will cost upwards of $1 million, he estimates. Ranalli says he has already lined up financing with First Niagara Bank for the project. United Auto Supply currently bases its Utica operations from about 8,000 square feet of space in the New Hartford Shopping Center, but the location isn’t ideally suited to what the company needs, Ranalli says. “It’s antiquated. It has no exposure. It’s very small,” he says of the current space. That smaller location receives daily deliveries from headquarters in Syracuse and then delivers them along to customers, he says. This has worked since the Utica location opened in 2000, but his business is growing as more people keep their cars longer and invest in repairing rather than replacing them, Ranalli says. With a new distribution center, United Auto Supply could receive shipments direct from GM/ACDelco, Ford/Motorcraft, Tenneco, Federal Mogul, AP Exhaust Products, and Timken, and then deliver to customers directly from Utica, Ranalli says. In addition, “The Utica location would then service our Oneida area, our Rome area,” he adds. Ranalli says he currently employs 10 people in the Utica area, and expects he would hire 30 to 40 new employees to staff the distribution center. Founded in 1946, United Auto Supply (www. unitedautosupply.com) employs more than 300 people across 20 locations, serving more than 7,000 customers with a fleet of 200 trucks. q
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February 10, 2012
• The Central New York Business Journal
5005 Campuswood Drive East Syracuse, NY 13057 Phone: (315) 475-9474 www.cny.wish.org Key Staff
President & CEO $64,000 Development Director PR/Communications Manager Program Services Coordinator Director of Finance & Administration Events Manager Program Services Manager Donor Relations Coordinator
Board of Directors (Officers) President Joseph Chirco
Frank Mento Diana Kanfer Lauren Kincaid Robin J. Toia
Carrier Corporation Chair Elect Clough Harbour & Associates, LLP Co-Treasurers Testone, Marshall & Discenza, CPAs Firley, Moran, Freer & Eassa, PC Secretary RJT Associates, Inc.
David Ayoub Bowers & Company, CPAs Anne Bazydlo retired Janet Callahan Hancock Estabrook, LLP Paul Dodd Northwestern Mutual Financial Network Rob Dwyer Sugarman Law Firm Colleen Julian Carrier Corporation Diana Kanfer Testone, Marshall & Discenza Lauren Kincaid Firley, Moran, Freer & Eassa, PC Daniel Kosick Susquehanna Valley School District Frank Mento Clough Harbour & Associates Michael Murphy First Niagara Bank Christopher Pinckney Pinckney Hugo Group James Reed Excellus BlueCross BlueShield Greg Scagnelli, MD Binghamton Gastroenterology Associates Roxanne Taylor SUNY Upstate Medical University Robin Toia RJT Associates Thomas Uva WYNIT Distribution, LLC Jessie Verna ConMed Corporation
“Incorporated in 1985, the Make-A-Wish Foundation of Central New York, Inc. is a nonprofit, tax-exempt organization dedicated to granting special wishes to children between the ages of 2-1/2 and 18 who are living with lifethreatening medical conditions to enrich the human experience with hope, strength, and joy.”
• Corporate Adopt-A-Wish Program • Wishes in Flight (donation of airline miles) • Kids for Wish Kids (K to grade 12, raise funds for wishes) • Wishmakers on Campus (college groups/clubs hosting events to raise funds for wishes) • Annual Giving & Stewardship Program • Wishes Forever Endowment (an endowment campaign that will carry the foundation to its goal of granting the wish of every eligible child)
Planning/Fundraising Outlook for 2012:
All fundraising programs increase the percentage of revenue, which allows the foundation to grow the number of CNY Wishes to 100 annually. • Roll out Annual Giving & Stewardship Program • Launch Wish Wednesdays Corporate Sponsorship program • Set $1 million goal for the Wishes Forever Endowment Campaign • Increase revenue sources in outlining geographic footprint and build greater individual giving • Annual Walk for Wishes: Syracuse (May, 5, 2012) and Binghamton (April 30, 2012) • Annual Golf Opens: Syracuse (June 4, 2012) and Binghamton (June 11, 2012) • Sugarman Law Firm Wish Ball (Sept. 8, 2012) • Ms. Orange Fan Luncheon (Oct. 28, 2012)
Contributions and grants Program Services Investment Income Other Total Revenue
Grants and similar amounts paid Salaries & Employee Benefits Other Total Expenses Surplus for the Year
$1,142,375 $300 -$3,898 $60,252 $1,199,029
$486,003 $312,525 $217,018 $1,015,546 $183,483
Profiling local nonprofit organizations
Diane E. Kuppermann President’s compensation Christine Corbett Bethann Kistner Amanda Timmerman Robin L. Mulpagano Debbie L. Simon Olivia Colabufo Jodi L. Hagan
Year ending Aug. 31, 2010
rof r np ne No or C
Make-A-Wish Foundation of Central New York
Make-A-Wish of CNY reaches 1,300 wishes BY NICOLE COLLINS Journal Staff
EAST SYRACUSE — The Make-AWish Foundation of Central New York celebrated a landmark year in 2011 with its 1,300th wish since its inception in 1985. The foundation fulfilled 50 wishes last year and is on track to grant 80 wishes this year with a budget of $1.4 million. Still, the organization knows it’s not reaching all the eligible children and its goal is to clear up some of the public misconceptions of Make-A-Wish to fulfill the wishes of all qualified children. Each year, 125 children diagnosed in the Central New York region become eligible for a wish, according to a recent epidemiological study from Make-A-Wish Foundation of America. “We’re granting 100 percent of wishes for kids referred to us, but we’re not granting all that are eligible for wishes,” says Diane Kuppermann, president and CEO of Make-A-Wish Foundation of Central New York. Several factors might contribute to the reason that Make-A-Wish doesn’t receive referrals for the eligible kids. One is that many believe it only caters to the Syracuse area. While its office is located in Syracuse, the foundation serves 15 counties, including those in the North Country, Mohawk Valley, and the Southern Tier. Another reason is that some parents may feel that because they have the financial means to provide for their children’s wants, they don’t need Make-A-Wish. “It’s so not about the money,” says Kuppermann. In some cases, money cannot buy a wish. For example, if a child wants to go to Give Kids the World, a 70-acre nonprofit resort in Central Florida for children with life-threatening illnesses and their families, the only way to obtain access is through a qualified wish-granting organization. “However, Make-A-Wish Foundation is the largest wish-granting organization in the world and sends the largest number of kids to Give Kids the World,” says Bethann Kistner, PR/ communications manager for MakeA-Wish Foundation of Central New York.
There’s also the misconception that Make-A-Wish only accepts referrals for terminally ill children. While its mission is to grant wishes to children with life-threatening conditions, the conditions do not have to be terminal. In fact, the foundation does not use the term “terminal” in any of its material. “It’s about empowering kids to be in control of one thing and giving hope,” says Kuppermann. “Tomorrow is uncertain for these kids. You can really see the difference that a wish makes.” A child has to meet three criteria to be considered a Wish Kid — be between the ages of 2-1/2 years and 18 years old; have a life-threatening medical condition; and not have had a wish from another wish organization. If multiple children in one family have a life-threatening illness, each child is eligible for a wish; the child does not have to share a wish with a sibling. Referrals generally come from the parents, though physicians or extended families may make the referral. In any case, Make-A-Wish says it needs to know it is being invited into the lives of the family. This is a difficult time for the families and they have to trust that Make-A-Wish will bring them hope. “We have one shot to make magic with these families,” says Kuppermann. It’s also important that kids be referred to Make-A-Wish as soon as they are eligible, especially if a child is approaching an 18th birthday. And while it doesn’t happen often, there have been a few cases where the Wish Kid succumbed to the illness before his/her wish could be fulfilled. “That’s the worst feeling in the world,” says Kuppermann. “We didn’t deliver on the mission.”
Kuppermann acknowledges that it is the board, volunteers, and the community that make it possible for MakeA-Wish to do what it does. Volunteers are the “lifeline of the organization,” says Kuppermann. This year marks her 20-year anniversary with the foundation, but Kuppermann recognizes some mem-
Make-A-Wish facts n Year Established: 1985 n Full-Time Employees: 8 n Volunteers: 230 n Service Area: 15 counties served: Broome, Cayuga, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Otsego, St. Lawrence, Tioga, and Tompkins
bers of the community that have been huge supporters for just as long, like Onondaga Beverage Corp./A.L. George LLC, Hafner’s Restaurant, and Jim and Juli Boeheim. For instance, the Ms. Orange Fan Luncheon, created by the Boeheims, has raised more than $1 million for the foundation during the past 20 years. “They don’t just lend their name, they roll up their sleeves and make the event a success,” Kuppermann says of the Boeheims. She also notes other members of the community, like Sugarman Law Firm, Applebee’s, and Dunkin’ Donuts, to name a few, that have been champions for the foundation. In fact, 50 local Dunkin’ Donuts franchises are currently raising money for MakeA-Wish with its spare-change program. Dunkin’ Donuts raises money for different charities in the region each quarter during the year with this program. Make-A-Wish was a firstquarter recipient in 2011, receiving more than $19,000. “This community is incredible. I would put it up against any community in the country. There’s a lot of good here,” says Kuppermann. Another example of the community at work? How about when Michael J. Falcone, chairman emeritus and founder of the Pioneer Companies, donated the building on Campuswood Drive in DeWitt, the present home for Make-A-Wish, on his birthday in 2005. Previously, the foundation was located in the former Hotel Syracuse building. The new DeWitt location needed major renovations, and while See make-a-wish, page 14
The Central New York Business Journal • 7
February 10, 2012
PANEL INVESTMENT INVESTMENT
Editor’s note: The Investment Panel feature appears regularly in our Financial Quarterly publication, spotlighting area investment professionals and their views on the markets and investments. In this issue, we chat with Jim Burns, Vinayak Rao, and Brian Schmidt. We interviewed them separately, but asked the same questions. Burns talked via telephone, while Rao and Schmidt communicated through email. James (Jim) Burns, president of J.W. Burns & Company in DeWitt. Burns
Vinayak Rao, portfolio manager at Strategic Financial Services in Utica. Rao
Brian Schmidt, financial planner with NFP United Advisors, LLC in Endwell. Schmidt
Business Journal: What is your view on where the financial markets are headed in the coming months? Burns: Stocks have started 2012 very impressively, which largely reflects a shrinking of the gap between the cautious sentiment on the part of investors and a very robust business environment on the other. Strong corporate earnings and relatively sub-par price performance has pushed stock valuations to essentially multi-decade lows. Stocks are, to put it bluntly, cheap. We see multiple expansion in 2012 as a potentially powerful driver that can propel equity prices higher worldwide. At the same time, this year has thus far experienced very See PANEL, page 11
New Sensis CEO expects growth Editor’s Note: The Newsmaker Interview portion of Financial NEWSMAKER Quarterly features a conversation with a CEO of a major Central New York company every quarter. The story discusses key financial issues affecting the newsmaker’s business and industry.
BY KEVIN TAMPONE JOURNAL STAFF
DeWITT — After acquiring Sensis Corp. in August, Saab made its new subsidiary the global head of its aviation business. Two Saab units in Sweden now report through Sensis, and the DeWitt–based company is also responsible for Saab’s North American radar business. Those actions should be a good indicator of Saab’s intentions, Sensis President and CEO Marc Viggiano says. “They didn’t buy it to close it. They bought it to grow it,” he says. “This is foreign direct investment in the U.S.” Viggiano took over as president and CEO in August after Jud Gostin, who founded the company in 1985, stepped down. Saab AB, a defense and security company based in Sweden, paid $150 million in August for Sensis, which now operates as Saab Sensis Corp. The deal could be worth up to $190 million if Sensis meets certain earnings targets in the next few years. Sensis provides sensor technologies, radar systems, modeling, and simulation for defense, civil aviation, airport, and airline cus-
Survey Says: U.S. workers’ confidence about retirement savings rose in 2011. Page 9
tomers. Viggiano was previously senior vice president and director of corporate development at Sensis, where he was responsible for leading the company’s strategy and business development. He also served as chief operating officer and, before joining the company, worked in advanced sensor systems at General Electric’s Aerospace Group. The acquisition by Saab will lead to more work, more exports, and more jobs at Sensis, Viggiano says. Saab’s global presence will mean greater access to foreign markets, he notes, adding that he has long been focused on exports. Saab has more than 30 locations around the world and has been doing business globally for years. “We’ve really just begun to scratch the surface of tapping the potential of everything that Saab can do for us here in Central New York,” Viggiano says. “It makes doing business around the world a lot easier for us.” Looming cuts in U.S. defense spending shouldn’t hurt Sensis’ domestic sales, according to the company. About 75 percent of its business is in aviation with the remainder in defense. And Sensis specializes in work like upgrading and extending the life of existing systems that will be valuable in the confines of a smaller Pentagon budget, Viggiano says. “We probably have as much potential for growth on the defense side as anywhere,” he says. Saab has been in the U.S. since 1950, but several years ago company leaders decided they needed to do more in the North American market, Saab North America President Dan-Ake Enstedt says. The firm needed a stronger local presence and more
people here, he says. The U.S. represents more than 40 percent of the world market for defense and homeland security, Enstedt notes. And the strict requirements for work here can help a company like Saab with sales elsewhere, he adds. Saab’s long-term goal is generating $1 billion in U.S. sales. The company is about halfway there now and Sensis will play a key role in helping reach that total, Enstedt says. The company’s expertise in radar and airtraffic systems was a perfect fit, as those were two areas of focus for Saab already. In the future, Enstedt expects Sensis’ work to expand into other Saab business areas like command and control and homeland security. See SENSIS, page 10
DATA FILE Charts provide data on the regional housing market (Page 8) and airport-passenger traffic (Page 12).
FO SALR E
• The Central New York Business Journal
DATA FILE FQ
February 10, 2012
HOME PRICES IN 16-COUNTY CNY REGION Median sales price of existing single-family homes sold in the 4th quarter of 2011 compared to other quarters.
HOME SALES IN 16-COUNTY CNY REGION Number of existing single-family homes sold in the 4th quarter of 2011 compared to other quarters. County
% Change 3Q 11 to 4Q 11
% Change 4Q 10 to 4Q 11
BROOME CAYUGA CHEMUNG CHENANGO CORTLAND HERKIMER JEFFERSON LEWIS MADISON ONEIDA ONONDAGA OSWEGO SENECA ST. LAWRENCE TIOGA TOMPKINS CNY TOTAL
363 149 176 78 86 61 235 37 140 429 953 200 66 162 81 132 3,348
345 162 209 93 95 67 297 46 169 418 1,171 241 84 200 61 213 3,871
260 127 148 56 78 62 239 37 109 380 867 179 70 158 64 130 2,964
+5.2 -8 -15.8 -16.1 -9.5 -9 -20.9 -19.6 -17.2 +2.6 -18.6 -17 -21.4 -19 +32.8 -38 -13.5
+39.6 +17.3 +18.9 +39.3 +10.3 -1.6 -1.7 unchanged +28.4 +12.9 +9.9 +11.7 -5.7 +2.5 +26.6 +1.5 +13
Median Price 4Q 2011
Median Price 3Q 2011
Median Price 4Q 2010
% Change 3Q 11 to 4Q 11
% Change 4Q 10 to 4Q 11
BROOME CAYUGA CHEMUNG CHENANGO CORTLAND HERKIMER JEFFERSON LEWIS MADISON ONEIDA ONONDAGA OSWEGO SENECA ST. LAWRENCE TIOGA TOMPKINS
$105,000 $104,900 $105,725 $ 85,500 $ 93,000 $107,000 $142,000 $122,000 $124,950 $105,000 $127,600 $ 96,900 $113,975 $83,090 $123,500 $179,500
$120,000 $115,750 $103,000 $90,000 $116,500 $98,580 $155,000 $104,500 $140,000 $120,450 $134,500 $102,000 $113,250 $80,000 $112,000 $185,000
$101,727 $105,000 $97,250 $76,000 $113,500 $94,850 $140,488 $113,000 $128,000 $110,000 $132,000 $101,000 $83,000 $85,000 $134,750 $170,000
-12.5 -9.4 +2.6 -5 -20.2 +8.5 -8.4 +16.7 -10.8 -12.8 -5.1 -5 +0.6 +3.9 +10.3 -3
+3.2 -0.1 +8.7 +12.5 -18.1 +12.8 +1.1 +8 -2.4 -4.5 -3.3 -4.1 +37.3 -2.2 -8.3 +5.6
SOURCE: NYS ASSOCIATION OF REALTORS, INC.
FO SALR E
FO SALR E
FO SALR E
FO SALR E
SOURCE: NYS ASSOCIATION OF REALTORS, INC.
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February 10, 2012
Survey: U.S. workers’ confidence about retirement savings rose in 2011 BY RUQING PAN CONTRIBUTING WRITER
.S. workers are becoming more confident that they will have enough money to retire comfortably, but know they still have work to do, according to a recently released survey from Towers Watson, a global employee-benefits consulting firm. In 2011, 68 percent of survey respondents reported they were very or somewhat confident they will have enough resources to live comfortably 15 years into retirement, up from 62 percent in 2010. The survey found 47 percent of respondents said they were very or somewhat confident about having enough resources to last 25 years into retirement, up from 40 percent in 2010. Survey data also indicates fewer employees are experiencing significant declines in their pension and retirement savings — 47 percent in 2011, down from 55 percent in 2010. Workers’ satisfaction with their household finances continued to rebound in 2011, rising 8 percent to 41 percent. However, 59 percent of employees remain generally unsatisfied with their financial situation, according to Towers Watson. “As the economy shows periods of stable ground, employees are slowly beginning to be more optimistic about retirement,” Kevin
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-Review how much is needed to save for retirement -Increase monthly savings -Review financial situation -Obtain professional advice -Reduce daily spending -Pay off debt -Defer major expenditures -Adopt a less risky investment strategy
Wagner, a senior retirement consultant at Towers Watson, said in a Jan. 19 news release. “However, the financial crisis was jolting to American workers. As a result, many employees are more financially conservative today and have a renewed interest in improving their financial decisions and planning and saving for retirement.”
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February 10, 2012
SENSIS: Viggiano: Sensis accounts for Saab’s largest presence in the U.S. and carries major potential Continued from page 7
“When they are ready, we really want to broaden the business in Sensis and build the company up and recruit more people in other areas,” he says. Sensis accounts for Saab’s largest presence in the U.S. and carries major potential, he adds. Although Sensis doesn’t provide projections on future employment levels, Viggiano says the expectation is expansion. Plans call for stable employment in the next few months and then for growth.
Sensis currently employs about 600 people at eight locations and serves more than 60 customers in 35 countries. It has about 500 employees in Central New York. The firm did suffer job cuts after the acquisition by Saab. Seventy-two employees, including executives, support staff, and technical professionals, lost their jobs. The job cuts were meant to bring the firm’s work force in line with its current business prospects, Viggiano says. Financial challenges originally sparked the sale to Saab.
Sensis lost money in 2011 as revenue shrank significantly. Sensis will turn a profit in 2012, Viggiano says. Since the acquisition closed, the company has won about $40 million in new business, he adds, and is projecting revenue growth of 5 percent in fiscal 2012. Sensis isn’t expecting further job cuts. “They are absolutely here to stay,” Viggiano says of Saab. “This is an investment in Central New York.” Contact Tampone at firstname.lastname@example.org
“They didn’t buy it to close it. They bought it to grow it,” Viggiano says. “This is foreign direct investment in the U.S.”
SURVEY: 39 percent of workers plan to delay retirement Continued from page 9
to work at least an additional three years. The survey also notes that after two years of cutting back on daily spending, paying off debt, and saving more for retirement, some respondents indicated they plan to take additional steps this year to get their financial houses in order. These steps include: review the amount they need to save for retirement, increase monthly savings, review their financial situation, obtain professional advice, reduce daily spending, pay off debt, defer major expenditures, and adopt a less risky investment strategy.
Theodore Sarenski, CEO of Blue Ocean Strategic Capital, a Syracuse–based company that provides wealth-advisory services,
says that investors are not showing confidence about retirement because they worry about losing money in the stock market. “People have scaled back on their tolerance of risk, and they are more conscious of risk now than they were a few years ago,” he says. Sarenski says the market volatility of the past four years has increased doubt. “There has been a lot of volatility in the stock market in the past four years, along with the uncertainty of not just the stock market, but in government’s ability to meet their obligation,” he says. “That uncertainty is leading some people to feel unstable. That gets them concerned because they are not reaching the goals that they thought they were going to reach.”
More survey findings
Employees’ confidence in retirement also depends on their plan. According to Towers Watson, the percentage of employees with defined benefit (DB) pension plans who are satisfied with their household finances sharply rose from 29 percent to 49 percent in the past two years. DB participants are more than twice as likely to feel “very confident” about the first 15 years of retirement and 2.5 times as likely to feel confident about a 25year retirement, compared to workers with only a 401(k) plan. The survey also examined younger workers’ attitudes, finding 47 percent of employees under age 40 reported they were satisfied with their household finances last year, up from 28 percent in 2009. Yet, about two-thirds of these workers said they would need to save much more in the future to retire comfortably. They are taking steps to
do it, the survey found. The percentage of young employees who carefully reviewed their retirement plans increased by more than 40 percent between 2010 and 2011. “While the depressed economy may have triggered some of these prudent behaviors, increased attention to retirement planning, especially for younger workers, can be a helpful step for employees to save for a secure retirement,” Bill Daniels, a senior retirement consultant at Towers Watson, said in the news release. The Towers Watson Retirement Attitudes Survey was conducted in June-July 2011 and includes responses from 9,218 full-time U.S. employees at non-government organizations. Contact The Business Journal at email@example.com
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February 10, 2012
The Central New York Business Journal • 11
PANEL: Schmidt: “The recent market spurt was needed and is certainly well received…” Continued from page 7
muted volatility within global markets. We believe market performance is unlikely to remain as smooth as it has been and investors should prepare to use future market declines as buying opportunities. Rao: In November 2011, we expected continued volatility in the equity markets with a bias to the upside supported by solid company fundamentals and attractive valuations. This view was decidedly contrarian as market participants were positioned defensively in response to the eurozone crisis and an uncertain domestic economic outlook. Over the course of the past three months, the market has rallied impressively with a return of approximately 7 percent. Strategic’s investment process emphasizes valuation as a primary input for our single-security and asset-allocation work. Currently, we believe equity markets are valued fairly to slightly extended after the recent rally. We expect some profit taking as investors recognize that market valuation has been reset higher (although still depressed by historical standards) in light of less robust corporate profits in the fourth quarter. Structural macro-economic issues in Europe, the United States, and even China, remain in place despite some recent improvements in the headline numbers. In addition, the political status quo threatens recovering investor sentiment as electionyear gamesmanship is played around critical issues such as unemployment benefits and the debt ceiling. Our best-case scenario calls for stocks to take a breather to digest recent gains over the coming months. The market should be range bound with risks slightly skewed to the downside. Despite near-term caution, Strategic believes that stocks are positioned to outperform bonds and patient investors could be rewarded handsomely over the longer term. Future performance is never guaranteed though. Schmidt: The recent market spurt was needed and is certainly well received by the investing community. The Dow Jones Industrial Average approaches a four-year high and investor confidence appears to be rising on positive economic news related to job creation. Please forgive me for being Debbie Downer, but I am not sure as to why we should be more confident now than we were in the weeks leading up to 2012, or in 2009 for that matter. The housing market remains a real concern and the impact that declining home values have on lenders’ balance sheets could be the elephant in the room. We still have significant volatility in Europe, which has a direct impact on the global market and our markets. We have low levels of GDP growth and have not made meaningful advances in addressing our debt. Until we take some serious steps towards addressing these underlying issues, I fear that whatever appreciation we experience in the markets is not based on sound fundamentals and therefore is potentially short-lived. Business Journal: How will electionyear politics affect the markets and the economy? Burns: Recently the Federal Reserve announced it would keep interest rates low through 2014. If this isn’t a political statement, then I really don’t know what is. From
my vantage point, the economy is muddling along, and this extended period of near-zero interest rates will eventually lead to a significant bout of inflation. But that is probably a little ways off. In election-year politics, it appears to me that Obama Administration and the Federal Reserve are saying to investors, “We are going to do anything and everything to maintain appearances that can make investors and voters feel reasonably optimistic when they head to the booth in November.” So in the short run, presidential politics should be good for the stock market and most asset classes. Essentially, the Federal Reserve is saying to investors: “If you want to be very conservative with your investable assets, go ahead, but we’re not going to pay you a damn thing.” The federal funds rate is basically zero and the Federal Reserve is attempting to push investment money into riskier assets, such as stocks, and thus drive a positive wealth effect for the economy. Rao: A U.S. election not only has the general public excited, but it also has implications for the markets and the economy. A look at the 23 election years since 1920 tells us that 68 percent were positive for the stock market, in line with non-election years. So it seems election years do not have an outsized effect on market performance. On average though, stocks have seen greater strength when Republicans have been elected. Election-year politics this year should result in a continuation of the “status quo,” with neither party willing to compromise on key issues. Additional concrete steps are required on the fiscal front to foster economic growth. Reining in the budget deficit through lower spending and laying out clear policies that boost business investment, encourage hiring, and lead to a recovery in the residential housing market would go a long way towards a more structural longterm recovery. In recent times, the Federal Reserve has been willing to fill in for the lack of fiscal action from the government through accommodative monetary policies — an unsustainable course of action in our opinion. Schmidt: Markets generally do not like uncertainty, and we have enough of that to go around, without the elections. To say that the volatility of the markets will be due to the election, I think would be convenient but inaccurate. Washington demonstrated its capability to affect the markets in a meaningful way with its inability to get a debt resolution passed to protect the credit ratings. Washington continues to come up short and whether or not the country experiences a change in leadership may not directly impact the markets, until there is change in how it conducts business. Business Journal: Provide specific recommendations for investments that clients should be making right now. Burns: As I discussed in the November Financial Quarterly, I continue to believe that investors should focus on developing a total-return portfolio composition with a focus on companies that can deliver earnings growth as well as dividend growth. I continue to like the stocks I recommended then. In particular, ConocoPhillips (Ticker: COP) and Target Corp. (Ticker: TGT). Also, as the economy continues to muddle through, we at J.W. Burns &
Company believe that companies with durable, competitive advantages will stand out. Two companies we like in particular are Cummins Inc. (Ticker: CMI) and Ford Motor Company (Ticker: F). Cummins makes engines for trucks, buses, and RVs, as well as for heavy equipment that can be used in natural-resources mining. We believe in 2012 that truck sales will increase significantly at companies like Paccar Inc. as aging fleets are replaced and inventories restock. Cummins’ dividend has more than tripled over the last five years. Ford is quite obviously the healthiest of the Big Three automakers, and its global expansion plans are moving along very nicely, especially in South Africa. Trading at about seven times earnings, the stock price is too low for a company that we believe will be growing its earnings at more than 12 percent per year over the next three years. Rao: For most of the past year, strong performance at the corporate level was overshadowed by macro-economic concerns. Given that the equity markets have now rallied more than 20 percent since their October lows, as some of the big-picture concerns have eased, the easy money has been made, and selective stock picking has become more important. However, value can still be found in selected segments of the stock market. While we prefer to approach the discussion of investment recommendations within the context of a portfolio perspective, we understand that specific stock picks are more likely to garner the reader’s attention. Currently, we believe Google, Inc (Ticker: GOOG), the online search behemoth, deserves a look. The company is a leader in desktop-based online advertising, and we expect robust growth over the coming years in the space. The continued shift of advertising dollars from traditional media to online channels in the developed world and increasing penetration in emerging markets should continue to drive Google ahead. Google should further benefit from other growth avenues such as mobile advertising through the proliferation of Android mobile phones and display advertising though enhanced YouTube monetization. Other initiatives — such as Mobile wallet, Google Offers, and Google + — should provide incremental benefits over the next five years. We continue to see Google as a 15 percent-plus grower, trading at an attractive valuation for its growth profile. Note: Strategic owns Google in at least one of our equity strategies. Strategic does not make a market in Google. Schmidt: I will spare my typical disclaimer language this time. If you have read my positions, you know how I feel about generic investment advice; it is just that. That being said, value to me remains the appropriate investment philosophy for the times. Investors are encouraged to find high-quality, dividend-paying equities. Fixed-income instruments will be adversely affected when interest rates do rise, and investors will need to find alternatives to typical solutions. The more sophisticated investors (institutions) have relied on alternative investments in the past, generally found in the form of REITs. While REITs remain an important tool, I see more investors looking to the business-development company (BDC) for further diversification. The BDC format provides real access to institutional
investment managers and is available to the investing public. Business Journal: What do you see as the greatest risks investors need to be aware of and seek to avoid in the coming months? Burns: The first risk is complacency. Thus far in 2012, as we speak, there have been no days in which the Dow Jones Industrial Average has finished down 100 points or more. So, these smooth, unanimated-like days in the stock market can cause investors to believe the coast is clear and increase their equity exposure without emotionally preparing for the volatility. The second risk is headline risk, in particular from Europe, but also potentially from Iran. All of our work indicates the west’s economic embargo on Iran has started to have a significant impact on their economy. The Strait of Hormuz could be the flashpoint for a U.S.-Iran conflict, which would drive up the price of oil sharply. It appears to me that the regime in Tehran almost wants a confrontation with the West, so investors should maintain a reasonable exposure to energy stocks to hedge this risk. Rao: We believe investors should be wary of chasing returns in the near term and willing to take profits when valuations become extended. As an example, in the fixed-income space, we recently took profits on behalf of our clients in Treasury Inflation Protected Securities after a return of more than 10 percent in 2011. When equity markets are driven too much by investor sentiment emanating from bigger-picture macro-economic issues, heightened volatility is the order of the day. Emotion-based, short-term tactical decisions expose investors to the risk of being whipsawed and making ruinous longer-term investment decisions. We advise investors to allocate investment capital prudently for the longer term within a customized framework of well-defined risk and return objectives so that portfolios are positioned properly for the inevitability of the occasional stock-market sell-off. Schmidt: Being short sighted. Ask yourself how you responded after getting your third-quarter statements in 2011? Many people experienced declines north of 10 percent and became concerned about their European exposure or whether or not it was time to retreat from equities. Here we are now into the second month of 2012 and you hear the sentiment turning from pessimism to optimism. I applaud the positive thinking, but from a planning standpoint, if you were uncomfortable with the volatility in September, you should be now as well. Collect some of the gains you made during the last two months, and reposition your portfolio so it aligns with your overall investment objectives. It is easy to get distracted during periods of market gains. Great example: a client called asking about the Facebook IPO. I asked a few questions: 1) if it made sense to buy this IPO or buy it on the exchange when it was listed; 2) had he identified when he would want to sell? 3) how did this equity position fit in with his investment objectives? After a few minutes of conversation, we agreed it was more the pent-up anticipation and the hope of capturing Google in a bottle than it was an investment decision that made sense for him. q
• The Central New York Business Journal
SYRACUSE HANCOCK INTERNATIONAL AIRPORT 2011 NOV.
2011 NOV. DEC.
2010 NOV. DEC.
ITHACA TOMPKINS REGIONAL AIRPORT 2011
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February 10, 2012
s your life’s work. MERGER: The merger also makes sense through the complementary nature of the two accounting firms rom every angle. Continued from page 1
more than 150 employees at locations in Utica, Rome, Oneida, Poughkeepsie, Millbrook, and Westchester. To market the newly merged firms, Fowler says the company has Semo done print advertising with numerous publications including The Mohawk Valley Business Journal and The Central New York Business Journal, the Syracuse PostStandard, the Rome Sentinel, the Rome T:15 in
base in Syracuse. “Some of the largest clients we have are Syracuse–based,” she notes. Merging with KSSL&S now gives D’Arcangelo an office at 401 N. Salina St. The second way the merger makes sense is through the complementary nature of the two accounting firms. “Their clientele is more focused in the area of taxes and small business,” Fowler says of KSSL&S. D’Arcangelo has strength in audits, human-resources consulting, insurance services, and investment management. “We expect to complement their practice,” with those services, Fowler says. Julius J. Kruth founded KSSL&S in 1950. “We found that because of the two firms’ similar cultures, our core values, and our shared emphasis on the role of the partner, the combination of partner and staff talent from all offices would provide benefits such as staff synergy, expanded use of technology, overhead reduction, niche practice creation, and expanded services,” Managing Partner Sheldon Kruth said in a news release. D’Arcangelo, founded more than 60 years ago, has a strong niche-based practice in the areas of ERISA (Employee Retirement Income Security Act) and with governmental auditing. “D’Arcangelo and Co., LLP can offer any and every client the qualifications, service, and experience of a large firm, but at small firm rates,” Managing Partner Mark Semo said in a news release about the merger. “Our partners are hands-on, in the trenches daily on behalf of our clients, and we believe that it’s this level of service that sets us apart from other firms.”
“We have significant depth in tax already, but their focus in tax and small business will even add to that more,” Fowler notes of how KSSL&S will benefit D’Arcangelo. “It’s a great partKruth nership between the two firms,” she says. “”We’re very excited about our future in Syracuse.” D’Arcangelo retained all 25 employees at KSSL&S and they joined D’Arcangelo’s
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Dispatch, and the Utica Observer-Dispatch. The firm is also sponsoring the show “Financial Fitness,” airing Thursday nights on WCNY to further get its name out there. “We’ve been reaching out to all of our clients,” Fowler adds. The firm is also sending letters to prospective clients. Fowler declined to share client figures or growth projections for the firm. “We just know that this is going to provide a big opportunity for us, and we’re excited to see where it goes,” she says. Contact DeLore at firstname.lastname@example.org
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May 16, 2012
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Awards will recognize leadership and excellence in all categories, with emphasis on project planning, publications, restoration, energy conservation, sustainability, and adaptive reuse of commercial and multi-family residential structures. The awards will honor both the projects and the project teams whose contributions demonstrate creativity, exceptional problem-solving, persistence, vision, and quality-control. We invite you to nominate projects along with the project team consisting of: developer/owner, general contractor, major subcontractors, architect/engineer, and broker/realtor.
New business, The Matchbox, TS CONSULTING leases Auburn space You see it as your life’s work. SURANCE
1.) Best Preservation project: This category includes preservation of historical structures. 2.) Best Municipal project: This category includes historic preservation of structures, parks, monuments, and landscapes. 3.) Best Industrial project: This category covers manufacturing plants, and warehouses, distribution facilities. 4.) Best Health-care facility: This category covers hospitals, nursing homes, assisted-living facilities, and other health-care facilities. 5.) Best Commercial project: This category includes single office buildings, banks, hotels, mixed-use structures, restaurants, and retail. 6.) Best Institutional project: This category includes laboratories, museums, stadiums, sports venues, performing-arts centers, zoos, and airports. 7.) Best Educational project: A.) K-12: This sub-category covers public elementary and secondary schools B.) Higher education: This sub-category includes both public and private colleges and universities. 8.) Best green project: This category recognizes excellence in green design and construction practices, and the use of sustainable materials.
By Journal Staff
We s e e i t f r o m e v e r y a n g l e .
Risk Management, Inc., a wholly-owned subsidiarySupport of First Niagara Bank, N.A.the top the teams behind
Don’t wait - nominate NOW at www.bizeventz.com. Nominations are due no later than March 16, 2012. T:15 in
AUBURN — A new business, called projects in Central New York, Mohawk The Matchbox, is setting up shop in an Valley, the Finger Lakes, Greater 8,400-square-foot retail building 328 Grant Whether you’re atstriking Ave. Binghamton, and the North Country by outEstate on your own,arranged movingthe Bouck Real recently nominating their projects. Please visit lease of the structure to Vince into a bigger spaceLaRosa, or www.bizeventz.com for more information owner of The Matchbox, which will be sellexpanding your footprint, ing custom t-shirts, sweatshirts, and a varion the event and nomination process. ety of clothing. In addition to clothing, the we take the time to get business (www.matchboxtattoo.com) will Winners will receive “A Time To Build” know business be offeringto tattoos andyour body piercing. awards and be honored at an awards LaRosa was looking for a location and deDate w/changes Initials Date w/changes termined that the Initials busy Grant Avenue area luncheon on May 16th at the Holiday Inn (Art) was a good Client fit, according to John Bouck,Creative Director Liverpool. president of Bouck Real Estate. The buildTraffic/Proofreader Creative Director (Copy) ing has been vacant for about a year. Financial terms of the lease agreement Production Account Executive were not provided. q COMMERCIAL & BUSINESS BANKING
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February 10, 2012
• The Central New York Business Journal
INITIATIVES: Fish sees the two projects coming out at the right time since they both are necessary Continued from page 3
the specific needs that are here and what kind of information would they need to back that up.” He says although the Grants Information Center is not going to be writing grants for people, it is going to be able to give them the tools and resources they need to make quality proposals, with the goal of leveraging local investment and local talent to bring dollars into communities all over the Finger Lakes area. Fish says he sees both projects benefiting for-profit businesses in the Finger
Lakes region –– including small firms. The Community Profile project has a lot of economic data, which people can review to identify potential markets. On the other hand, the Grants Information Center will help monitor grant opportunities for businesses, including research grants and development grants, then notify them when it sees one that fits their business, and assist them to create a more competitive application, he says. “The other thing is, businesses in general, when you have employees who are having a higher quality of life, who are happier, who are healthier, they are going
to work better for you,” Fish says. “So by supporting the other nonprofit agencies that are delivering the services necessary to help people along those lines, we are actually helping the businesses in the long run as well.” Fish sees the two projects coming out at the right time since both of them are necessary for the community. He feels that as the pool of grant money from government agencies and foundations is shrinking, it’s important that the chamber and its partners provide tools for people to be more competitive. “I’m glad that we were able to get it off
the ground and going in the beginning of the year, where we’ve got a lot of big plans to get people indoctrinated in how to use it,” says Fish. “It’s going to be a good year for both programs.” Fish says the Community Profile project has already contracted with CGR to do an update of data in 2013, and the Grants Information Center is going to measure its success by evaluating the number of grant dollars that organizations attain, utilizing the services at the center. q Contact The Business Journal at firstname.lastname@example.org
MAKE-A-WISH: Recently re-organized the responsibilities of the staff and hired three new staff members Continued from page 6
the organization had a $100,000 cash budget for the work, it didn’t spend any of it. It was the help of 89 local companies, who donated funds, materials, and had staffers volunteer their time to renovate the building, that made it possible for Make-A-Wish to move into its new home in 2007. Inside the 7,500-square-foot building is the Wish Child Wall of Honor that was unveiled in 2008. It is a wall of stars with the name of each Wish Kid on it. Former Wish Kids and their families are welcome to visit the wall.
Behind the wishes
Make-A-Wish covers all costs of a wish,
including medical expenses. The wish is a gift to the family, so there are no strings attached. The average cost of a wish is $9,000. The funds for the wishes come from special events, corporate donations, individual gifts, grants, and fundraising programs like AdoptA-Wish, Kids for Wish Kids, and Campus Wishmaker. The foundation aims to raise at least 30 percent of the cost of the wish with in-kind donations. These are gifts and services for which the foundation doesn’t have to pay. All the funds raised stay local to meet the wishes granted in the region. The organization does not raise dollars outside its 15 counties region, as that would infringe on another chapter’s territory, says Kistner. For the fiscal year ending Aug. 31, 2010,
Make-A-Wish produced total revenue of just under $1.2 million, with the largest sources being special events and corporate donations. Also, 75 percent of the operating budget went towards granting wishes, the organization’s main service program. The national Make-A-Wish Foundation mandates that no less than 75 percent of the operating budget goes towards wish-granting. In 2009, 82 percent of the CNY Make-A-Wish budget went to wish-granting, and although the numbers aren’t finalized yet, Kistner believes that for 2011, it was in the 80 percent range. The foundation recently re-organized the responsibilities of the staff and hired three new staff members, two for newly created positions. In August, Amanda Timmerman filled the new program service coordinator
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position, and then in September, Kistner began in the new position as PR/communications manager. Christine Corbett started in January as director of development. Now with a full-time staff of eight, this is the largest the staff has been since Kuppermann started in 1992. She was the first paid employee for the organization. Her first title was executive director, but it changed over the years to president and CEO to mirror business titles. She’s now been with the organization for 20 years, quite a haul for someone who thought she was going to be a stay-at-home mom. What made her stay? She said then and says now, “My work isn’t done here.” q Contact Collins at firstname.lastname@example.org
The Central New York Business Journal • 15
February 10, 2012
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and Supporting Sponsors of the 2012 Book of Lists
han ever, small businesses need the support of strong, stable banks to succeed. That’s what
h M&T Bank. When you partner with M&T, not only will you benefit from local decision
’ll have the number one SBA lender in Central New York* on your side – a bank with an
commitment to small business.
green flag for a full range of banking services built for business.
A Special Thank You to our guest panelists: Edward Bogucz of Syracuse CoE, Lee Davis of O’Brien & Gere, Joel Howard of Applied Bioreﬁnery Sciences, Joe Casper of Ephesus Technologies, and Linda Hartsock of CenterState CEO.
AmeriCU Credit Union • Syracuse Center of Excellence • Usherwood Oﬃce Technology • Visual Technologies
SBA District (which includes Albany, Broome, Cayuga, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Essex, Franklin, Fulton, Greene, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oneida, Onondaga, ce, Saratoga, Schenectady, Schoharie, Schuyler, Steuben, Tioga, Tompkins, Warren and Washington Counties), released by the U.S. Small Business Administration (SBA) for total approved loans through SBA’s 7(a) lending program 30/2011.
February 10, 2012
• The Central New York Business Journal
TOP RANKS: ADVERTISING AGENCIES Ranked by CNY FT Ad Staff
branding & strategic planning, research, graphic design, direct marketing, media buying, public relations, social media, video production & interactive development
10 20 30
Douglas Pinckney, President Aaron Hugo, Executive VP Christopher Pinckney, Executive Creative Director
direct-mail marketing, digital-color printing, graphics print/production, creative layout & design, fulfillment
Time Warner Cable, HewlettPackard, Agilent Technologies, Aspen Dental Management, Raymour & Flanigan Furniture
Michael J. Barker, Pres. & CEO Edward C. Mertens, Jr., VP & Creative Director John T. Kinslow, VP Operations Terry L. Brennan, Director of Sales
strategic planning, marketing, 18 advertising, public relations, research, and new media
American Dairy Association, Nationwide Insurance, Cooper-Crouse Hinds, Solvay Bank, Northbrook, IGK Equestrian
Michael J. Ancillotti, President Bill Patrick, VP Operations Mark Anderson, Media Director Andrew Collins, Creative Director
13 — 14
marketing, public relations, analog and 15 digital implementation platforms, government relations and issue management, media planning
10 10 10
Indium Corp., SEACO, Burrows Paper Corp., Cathedral Corp., Shumaker Engineering, Saratoga Associates
Nancy Pattarini, President & CEO Christine Shields, VP Media Director Claude Schuyler, VP Senior Creative Director
MPW Marketing 12½ East Park Row Clinton, NY 13323 (315) 853-1080 www.mpwmarketing.com
13 — 13
strategic marketing, B2B, B2C, 10 advertising creative, media buying and planning, websites and online marketing, SEO, SEM, social media, custom programming
25 10 10
Carrier Corp., Faxton St. Luke's Healthcare, Nye Automotive, Standard Insulating, VNA Homecare
Matt Wilson, Owner
Professional Media Services, Inc. 185 Genesee St., Suite 1600 Utica, NY 13501 (315) 797-8236 www.promediaonline.com
12 — 13
consulting/media planning and buying, 20 web design, Internet marketing, audio/ video production, graphic and multimedia design
Estate Planning Law Center, New Hartford Shopping Center, Country Club Auto Group, Birnie Bus Service, G & I Homes,Inc.
Kenneth F. Roser, Jr., CEO Roxanne Roser, CFO Lisa Militano, VP Operations Lisa Roser, Senior Marketing Consultant
The Ad Group Agency, Inc. 114 Cottage St., Suite 201 Oriskany Falls, NY 13425 (315) 306-4009 www.the-ad-group.com
11 — 12
creative, comprehensive in-house 18 production facilities for TV, radio, print, websites, social media development, branding, collateral materials, and POS merchandise
Joe Tahan's Furniture, Herb Philipson's, Davidson Automotive Group, Oneida Healthcare Center, Rome Teachers FCU
David C. Bean, President Kimberly Bridge, Head of Operations David A. Peroni, Media Director
Riger, A Marketing Communications Company 53 Chenango St. Binghamton, NY 13902 (607) 723-7441 www.riger.com
11 — 11
marketing communications, consumer 10 and B2B advertising, branding, PR, design, media, research, web and interactive
25 20 15
BCIDA, CFCU, ESSA, Sanofi Pasteur, UHS
Mark A. Bandurchin, Managing Partner Steven D. Johnson, Managing Partner
Rosanne Sall Advertising, Inc. 88 Main St. Binghamton, NY 13905 (607) 772-6868 www.rsadagency.com
10 — 11
advertising & marketing for retail/ service; transit advertising sales; airport advertising sales; "WebWorks" to develop and market websites & other Internet opportunities
Olum's, Tioga State Bank, Tioga Downs Casino, Ben Weitsman & Son, Serafini Nissan Volvo
Rosanne Pinker, Founder, President Monty Pinker, COO Thomas Raff, Creative Director Mary Roper, Media Director
Iron Design, Inc. 120 N. Aurora St., Suite 5A Ithaca, NY 14850 (607) 275-9544 www.irondesign.com
10 — 10
business brand and identity development, packaging, brand building for higher education
Novomer, Alternatives FCU, Binghamton Philharmonic, Cayuga Waterfront Trail, Cornell Univ., Middle Ages Brewing
Todd Edmonds, CEO
Cowley Associates, Inc. 235 Walton St., Suite 210 Syracuse, NY 13202 (315) 475-8453 www.cowleyweb.com
10 — 10
brand dev./strategy and promotion, 10 strategic planning, creative communications, direct marketing and lead generation, interactive/web strategy/dev., social media
35 10 20
AmeriCU, Dermody Burke & Brown, Stickley Furniture, Skaneateles Jewelry, Blue Highway, HOACNY, Delta Marketing Dynamics
Paul J. Cowley, CEO/Creative Director Gail Cowley, COO Dan Roche, EVP/ Business Development
Performance Bridge Media 115 Court St. Binghamton, NY 13901 (607) 723-3772 www.performancebridge.com
9 — 11
online direct marketing and customer acquisition, including display advertising, search, and social media management
Audible.com, Accuquote Life, ice.com, diamond.com, Karl Storz
Stephen Smyk, CEO
Romanelli Communications 2 College St. Clinton, NY 13323 (315) 853-3941 www.romanelli.com
8 — 9
informed and strategic marketing communications, client engagement, brand and relationship building
F.X. Matt Brewery, First Source Federal Credit Union, JAY-K, JETNET LLC, Fred F. Collis & Sons, M. Griffith Financial Services
Joseph Romanelli, President Beth Romanelli-Hapanowicz, Vice President
Designworks Advertising, Inc. 109 Twin Oaks Drive Syracuse, NY 13206 (315) 431-0808 www.designworksadv.com
8 — 9
brand building, image enhancement, full-service marketing, improving bottom lines, web and social media strategies, food and restaurant specialists
10 10 10
30 10 Maines Paper & Food, MVCC, CAS Geneseo, Kovatch Companies, IMA
David Bellso, CEO Michele Bellso, President Scott Herron, Creative Director
Ad Elements, LLC 45 Lewis St., 1E Binghamton, NY 13901 (607) 238-1560 www.adelements.net
7 — 9
creative development for all facets of advertising, media purchasing, digital strategies/promotions, medical practices, universities, and retail/ service clients
15 10 Peoples Neighborhood Bank, CyberKnife Center of NY, Auchinachie Plumbing and Heating, Laser Eye Center, American Red Cross
Stephanie Olds-Blodgett, President James Blodgett, VP of Sales Ashley Camarda, Media Buyer Christopher Coyne, Creative Services Director
Warne/McKenna Advertising 110 S. Lowell Ave. Syracuse, NY 13204 (315) 478-5781 www.wmck.com
6 — 7
traditional and digital advertising services including radio and TV production, corporate videos, media buying, graphic/web design, Internet advertising and QR code campaigns
Koenig Advertising Public Relations 309 S. Franklin St. Syracuse, NY 13202 (315) 475-1603 www.koenig-adpr.com
6 — 6
advertising, public relations, graphic design, web development
10 15 20
Eric Mower and Associates 211 W. Jefferson St. Syracuse, NY 13202 (315) 466-1000 www.mower.com
Pinckney Hugo Group 760 W. Genesee St. Syracuse, NY 13204 (315) 478-6700 www.pinckneyhugo.com
45 — 45
Integrated Marketing Services, Inc. 4682 Crossroads Park Drive Liverpool, NY 13088 (315) 433-1190 www.intmarkserv.com
20 — 20
Latorra, Paul & McCann 120 E. Washington St. Syracuse, NY 13202 (315) 476-1646 www.lpm-adv.com
19 — 19
Paige Marketing Comm. Group, Inc. 258 Genesee St., Suite 204 Utica, NY 13502 (315) 733-2313 www.paigegroup.com
Note: Information was provided by representatives of listed organizations and their websites. Others may have been eligible but did not respond to requests for information. Central New York includes Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Seneca, St. Lawrence, Tioga, and Tompkins counties.
Company Specialties B2B marketing, PR and public affairs, consumer advertising, brand promotion, digital/direct/relationship marketing, marketing to new moms, marketing to contractors
No. CNY Clients 59
CNY FT Ad Staff — Total CNY Employees 95 — 215
Name Address Phone Website
% of 2012 Billings
Notable Clients Legrand/Pass & Seymour, Lenox/Newell Rubbermaid, Verizon Wireless, Cadaret Grant, Constellation Energy Nuclear Group
Key Executives Eric Mower, Chairman & CEO Fran Nichols, Managing Partner Chris Steenstra, Managing Partner John Favalo, Managing Partner Greg Loh, Managing Partner
East Syracuse Chevrolet, Janice McKenna, President Loretto, Coleman's, Diocese of Renee Benda, Media Director and Digital Syracuse, Tarson Pools, Advertising Strategist Geddes Federal, Cashel House, Rosie's Evans Chevrolet, Rudy Schmid, Medical Coding Services, The MOST, ClearPoint Consumer Credit Solutions
Stewart H. Koenig, President Judy Schmid, CFO
Year Estab. 1968
RESEARCH BY NICOLE COLLINS 2/12 email@example.com
The Central New York Business Journal • 17
February 10, 2012
Business Journal C e n t r a l
N e w
Y o r k
Volume 26, No. 6 - February 10, 2012 NEWS Editor-in-Chief........................Adam Rombel firstname.lastname@example.org Assistant Editor..............Maria J. Carbonaro email@example.com Staff Writers........................... Kevin Tampone (Online Editor) firstname.lastname@example.org ..............................................................Rick Seltzer email@example.com ............................................................Traci DeLore firstname.lastname@example.org Contributing Writer....................Ruqing Pan Columnist..........................Gerald J. Archibald Production Manager.......................Erin Zehr email@example.com Research Manager.................. Nicole Collins firstname.lastname@example.org SALES Sr. Account Managers....................................... Bernard B. Bregman email@example.com Mary LaMacchia firstname.lastname@example.org Marketing .......................BBB Marketing Inc. CIRCULATION Circulation Management....(315) 579-3927 Administrative Publisher..........................Norman Poltenson email@example.com Chief Operating Officer......Marny Nesher firstname.lastname@example.org Business Manager.....................Kurt Bramer email@example.com
The Central New York Business Journal (ISSN #1050-3005) is published every week by CNY Business Review, Inc. All contents copyrighted 2011. All rights reserved. No part of this publication may be reproduced without the written consent of the publisher. Cover Price $2 Subscription Rate $88 per year Call (800) 836-3539
HOW TO REACH US MAIL: Send letters to: Editor, The Central New York Business Journal 269 W. Jefferson St. Syracuse, N.Y. 13202-1230 E-MAIL: firstname.lastname@example.org PHONE: (315) 472-3104
Managed care: “of the people, by the people, and for the people”? L isten carefully, quiet, shh … did you hear? New York State is approaching bankruptcy. And Gov. Cuomo, with the cooperation of the state Senate, the Assembly and every New York State resident is attempting to avert a Greece-like collapse of the state’s credit status and governmental system of providing necessary services in a fiscally responsible manner. For the record, I am a lifelong baby-boomer Democrat, and a fiscal conservative. Yes, one does not have to be a Republican to be anointed with a conservative fiscal bias. On Jan. 14, Gov. Cuomo released his 2012-13 state budget proposal, which is due to be approved by the above referenced legisopinion lative bodies by April 1, 2012, the beginning of the state’s fiscal year. From a 10,000-foot view, the budget is impressive. It offers the first back-to-back total spending reductions in decades, with total spending proposed at $132.5 billion — down $225 million from the prior year. For a state with a total population of just under 19.5 million in 2010 with a 2.1 percent increase in population from the 2000 census, New York has virtually no growth and, courtesy of the Great Recession, more demands for services than tax revenue can support. My focus, after 37 years of professional, volunteer, and philanthropic service to charitable organizations, is on the tax-exempt health and human-services sector. Decades of service to, and experience with, these organizations has demonstrated that tax-exempt organizations provide valuable and needed services to vulnerable populations, generally at a cost much less than their government counterparts. However, as the governor knows, the current cost of these services cannot be supported or sustained.
GERALD J. ARCHIBALD
So, this year’s budget continues the aggressive approach of applying managed-care principles to New York’s most vulnerable populations. Individuals with disabilities, mental health, substance abuse, and the elderly must all embrace the concept of managed care. I should say that those of us who experienced the managed-care initiatives of the 1980s, 90s, and early 2000s know that it is a euphemism for rationing, reduction of cost, restructuring of delivery systems, reallocation of resources, and transfer of financial risk from the payer (government/insurer) to the provider. Fundamental structural change of this nature must be implemented, but traditional managed-care principles are doomed to failure, if we fail to recognize the need for flexibility in care delivery and financing of services. Basic principles of managed care applied to the health-care sector date back to the Kaiser Corporation of the 1930s. Four fundamental characteristics must exist in order to have managed care achieve the desired result of a healthier population at a lower cost with
greater efficiency: 1) The people covered under managed care must have a direct interest in and concern for their health and well-being; 2) The people covered must have a direct financial interest in the cost of services they consume as these services are provided; 3) The individuals covered must have the ability to influence and control their utilization of health and human services with particular emphasis on maintaining a healthy life style; 4) The managed-care population must be of sufficient size and numbers (generally in the tens of thousands) to provide for the spreading of the financial risk associated with “high-cost outliers.” This is where the details of the governor’s budget proposal diverges from the reality of the populations being forced into “managedcare plans.” Ten observations from me to you, the governor, and the legislative rule-makers in this managed-care restructuring must be addressed now in order to avoid a managed-care “train wreck” several years from now. First of all, don’t shoot the messenger. Gov. Cuomo is, in my opinion, taking a great risk in proposing a solution to a problem that has existed for decades. We must work in a cooperative manner, with give and take and reasonable compromise, to develop a system of health and human-service delivery that can be a model for others to emulate. Next, be even handed and do not discriminate in the restructuring of the delivery and financing systems. For example, when you know that the greatest cost savings can be achieved by privatizing services provided by state employees, share the sacrifice appropriately in both the public and private sectors. Most citizens do not know that state-provided services to the vulnerable populations mentioned above routinely cost 30 percent to 50 percent more than the same comparable services in the voluntary tax-exempt sector. In 2011, the governor implemented a masterful stroke of political genius called the Medicaid Redesign Team (MRT). He appointed private-sector employers, health and human-service providers, government representatives and others to develop a series of 79 recommendations for government consideration. In doing so, he deflected the traditional process of stalemate and inertia in the much desired direction of looking for solutions. However, if you read the recommendations, they are long on objective ideas and short on specifics for achieving desired savings. As is true with any major service delivery restructuring by government, the “devil is in the details.” One of the fundamental flaws of the managed-care initiative is the failure to address the excessive expectations of our citizens, both those that receive and those that provide care, whether through government or the private sector. This is what is known as shared sacrifice, something that this country has not demonstrated broadly since World War II. I am not optimistic that without a EuroZonelike credit crisis in New York State, the necessary call to action and rallying of the masses to “do what is right” will occur. New York State now has more than 5 million residents eligible for Medicaid, or 26 percent of the population. These individuals and the millions of others at or below the poverty
line have to make difficult decisions every single day. Where and how do I get my next meal? Do I feed myself or my children? And, dozens of other gut-wrenching questions that those of us who are fortunately employed never give a second thought to. The vast majority of the vulnerable Medicaid populations do not have the ability to make these decisions for themselves. Ok, on to some ideas and solutions. Fundamental to any managed-care structure is a managed-care organization (MCO). The state has designed four primary models of MCOs. Their names are self-explanatory. Health Homes for traditional health-care services, Behavioral Health Organizations (BHOs), Developmental Disabilities Individual Service Care Organization (DISCOs), and Managed Long Term Care (MLTC). These organizations must be a public and private-sector initiative including all stakeholders. If, as is true in most previous initiatives, these MCOs are left to the responsibility and control of the typical insurance company, forget it. Without a decision-making balance between the payer (the state), the manager of care (insurance company), and the service providers (tax-exempt hospitals, nursing homes, physicians, and other for-profit providers), managed care will not work. In the absence of decision-making balance, compromise, and shared sacrifice, New York will experience what I refer to as the “chaotic dismantling” of the health and human-service sector that this state has built since the 1960s. Bankruptcies will be common place, service recipients will be pinballed or excluded from receiving services, and the “safety net” infrastructure could be destroyed. If my assessment is correct, then the result will include the loss of valuable service providers, success for certain providers who learn how to game the system, and, most importantly, a reduction in the volume and quality of services to the vulnerable citizens of our great state. So, before the government allows the proverbial managed-care train to leave the station, take a look in the mirror, revise expectations, involve all stakeholders, and, most importantly, balance the need for fiscal discipline with the needs of our citizens. Finally, I applaud the governor for his bold leadership in his budget proposals. At the same time, government must remain “of the people, by the people, and for the people.” Traditional managed-care models do not measure up to this objective, particularly for vulnerable populations who have virtually no ability to advocate on their own behalf. q Gerald J. Archibald, CPA, is a partner in charge of the management advisory services at The Bonadio Group. Contact him at (585) 381-1000, or via email at email@example.com
DON’T MISS IT! Check out the Rombel on Business blog at cnybj.com for Adam’s comments on the latest employment data and his video commentary.
February 10, 2012
• The Central New York Business Journal
n CNY BEST Information Session from 5:30 to 6:30 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: firstname.lastname@example.org n Hiring Options to Grow a Business seminar from 10 a.m. to 2 p.m. at the Craftman’s Inn, 7300 E. Genesee St., Fayetteville. Hosted by Women TIES, this is its first growth seminar of 2012. The cost of the program is $45. Reservations can be made at www.womenties.com or by calling (315) 708-4288.
February 16 n Balancing Family Legacy and Future Change discussion from 7:30 to 9:30 a.m. at the Syracuse Technology Garden. The discussion will address how families can balance their historical legacy with the need to adapt to an uncertain future environment. Presenters will be Alex Mckelive, professor, Syracuse University, and Robert Nason, FFI board member and Ph.D. student at Syracuse University. Members are prepaid; nonmembers can attend for $35/person. To register, contact Donna Herlihy at email@example.com or call (315) 579-2871.
February 17-19 n AmeriCu Credit Union Home Show at Turning Stone Resort and Casino. The event was developed to become a new regional home show for promotion of products and services by Central New York businesses for local consumers. For more information, visit www. homeshowatturningstone.com or call show hotlines at (315) 794-0695 or (315) 794-1418.
February 21 n IAAP Meeting starting at 6 p.m. at C&S Companies, 499 Col. Eileen Collins Blvd., Syracuse. Enid G. Reiley from Emerald Training Consultants will present “Getting Results without Authority.” The program is free for members, $5 for students, and $10 for nonmembers. RSVP by Feb. 16, via www.jotform.com/ form/12401111357. For those attending both the program and dinner, the cost is $12 for members, $17 for students, and $22 for nonmembers. For more information, visit www.iaap-syracuse. org or contact Suzanne at sbenderski@ cpsprofessionals.com n Social Media Community Discussion Group from 9 to 10 a.m. at SUNY Center for Professional Development, 6333 Route 298, Suite 102, DeWitt. CNY ASTD hosts an informal group for discussions on social media in a research, sharing experiences, and learning environment. This
meeting’s topic is online surveys. For details, call (315) 546-2783 or email: info@ cnyastd.org
February 27 n CNY BEST Information Session from noon to 1 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: firstname.lastname@example.org
February 28-29 n Leadership Challenge Workshop, Learn How Ordinary People Get Extraordinary Things Done twopart workshop from 7 to 9 p.m. at the Baldwinsville Public Library, 33 East Genesee St. on two successive evenings. The interactive workshop is based on the award-winning book, “The Leadership Challenge.” It is designed to teach participants how to increase their effectiveness as leaders in businesses and organizations. The program is free, but advance registration is required either in person or by calling (315) 6355631.
February 29 n Making Your Company Green Certified Seminar from 5:30 to 7 p.m. at SEFCU Cicero branch, 8086 Brewerton Road. This is a free seminar presented by SEFCU and Frank Raymond Cetera, certified business advisor; Onondaga Small Business Development Center at OCC; and the Northside Urban Partnership. Reserve your spot by email: email@example.com or call: (866) 7332880, ext. 5321.
2783, or email: firstname.lastname@example.org n Work / Life Balance - Where are the Boundaries breakfast forum from 7:30 to 9:30 a.m. When families work together, live together, socialize together, boundaries can get blurred. The forum will discuss how to keep family-business missions clear and possibly a way to draw the line between work and life. The presenter will be Alan Andrews, an industrial consultant who has provided executive coaching, mentoring, and guidance to hundreds of leaders throughout the U.S. and Europe. Members are prepaid; nonmembers pay $65/person; family discounts available. To register, contact Donna Herlihy at email@example.com or call (315) 5792871.
March 14 n CNY BEST Information Session from 8:30 to 9:30 a.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: firstname.lastname@example.org.
March 21 n Nonprofit Awards Luncheon at the Oncenter in Syracuse. Celebrate the exceptional work done in our community by the nonprofit groups in Central New York, the Mohawk Valley, and Greater Binghamton. Nominate online at www. bizeventz.com. For more information, contact Joyl Clance at email@example.com, or call (315) 579-397.
n CenterState CEO Business Before Hours event from 5 to 6:30 p.m. at Dinosaur Bar-B-Que, 246 Willow St., Syracuse. Register by visiting www.centerstateceo.com
n F.O.C.U.S. Greater Syracuse Wisdom Keeper III Awards from 5 to 8 p.m. at the Nicholas J. Pirro Convention Center, Ballroom, Syracuse. Judith C. Mower will be honored as the 2012 Wisdom Keeper. For more information, contact Deb Scott at firstname.lastname@example.org, or call (315) 448-8732.
n CNY Sales & Marketing Executives Crystal Ball & Sales and Marketing Excellence Awards Ceremony beginning at 5:30 p.m. at the Sheraton Syracuse University Hotel & Conference Center. Dr. Debbie L. Sydow, president of Onondaga Community College, will be receiving the prestigious Crystal Ball Award. For more details and ticket information, visit cnysme.org, call (315) 8761868, or email: email@example.com
n Every Tuesday, Gung Ho Networking Group from noon to 1:30 p.m. at Ruby Tuesday Restaurant, 3220 Erie Blvd E., DeWitt. Possible referrals for you; this is not a tip club. First visit free. Contact Paul Ellis at (315) 677-0015 or visit www.GungHoReferrals.com
n CNY BEST Information Session from 5:30 to 6:30 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 546-
n Second Wednesday of every month, Salt City Technical offers by appointment free consultation to entrepreneurs or inventors who would like to have their product ideas evaluated by a staff of trained engineers. For more information or to schedule a consultation, call (315) 456-8461, or visit www. saltcitytechnical.com n First Wednesday of each month,
Business Innovation Days meetings from 9 a.m. to 5 p.m. at The Tech Garden, 235 Harrison St., Syracuse. Entrepreneurs and small businesses can meet one-on-one with a counselor from the SBDC for advice and customized assistance opportunities. Scheduled by appointment, call (315) 474-0910 or email: firstname.lastname@example.org n Second Wednesday of each month, Salt City Technical assistance by appointment at the Tech Garden; free consultation to entrepreneurs or inventors who would like to have their product ideas evaluated by a staff of trained engineers. For details or an appointment, call (315) 474-0910 or email: info@ thetechgarden.com n Every Thursday, Empire Statesmen Toastmasters meet at 6:30 p.m. at Ruby Tuesday on Erie Boulevard in DeWitt. For more information, visit http://estm. freetoasthost.info or email: president@ estm.freetoasthost.info n Every second and fourth Thursday of the month, The North Star Toastmasters from noon to 1 p.m. at C&S Companies, 499 Col. Eileen Collins Blvd., near Hancock Airport. For more information, contact Sandy Jurkiewicz at email@example.com or call (315) 470-1802. n Every Friday, 40 Above: Workers in Transition from 9 to 11 a.m. at The Westcott Community Center, 817 Euclid Ave., Syracuse. Helping workers/job seekers aged 40 and above in search for work. Contact John A. Cruty (315) 5693964, firstname.lastname@example.org n Every Friday, Tip Club of Syracuse, at the Sheraton Syracuse University Hotel, 801 University Ave., Syracuse, 8 to 9 a.m. Call Bernie Bregman at (315) 472-3104, ext. 103 or email: bbregman@ cnybj.com n First Friday of each month, Toolkit Day with SCORE by appointment at The Tech Garden. Counselors provide free, confidential, individual business mentoring to prospective or current business owners. For more information or to schedule an appointment, contact Lynn Hughes at (315) 579-2862 or email Lynn@TheTechGarden.com n Every second and fourth Friday of each month, The SUN Group (Sustainable Upstate Network) meets from 7:30 to 9 a.m. at Tony’s Family Restaurant, 3004 Burnet Ave., Syracuse. For more information, contact Andy Picco at (315) 657-0135 or email: email@example.com n Every week, Syracuse Networking Professionals. Five meetings to choose from. For details, call Kevin M. Crook at (315) 439-1803, or email KevinSNP@twcny.rr.com or visit SyracuseNetworkingProfessionals.com n CNY Connects is a networking organization that currently offers 12 groups from which to choose. If you are interested in visiting or joining any group, please contact Amy Kaschel of AK Consulting at akconsult@twcny. rr.com or call (315) 882-6127 for more information. To have your meetings or events in the Business Calendar, email them to firstname.lastname@example.org
The Central New York Business Journal • 19
February 10, 2012
PEOPLE ON THE MOVE: new hires & promotions ACCOUNTING Dermody, Burke & Brown, CPAs, LLC recently hired Christopher M. Joanis as a humanresources manager. He earned a master’s degree in management systems with a conJoanis centration in humanresources management from Clarkson University and a bachelor’s degree in business economics with a concentration in management from SUNY Potsdam. Joanis has his senior professional in human resources certification and more than 10 years experience in human resources. The Bonadio Group has promoted Jonathan Herman to experienced consultant in the firm’s enterprise risk-management division. Bonadio also promoted John Astles, David Gay, Kristen Mastellar, Kari Faherty, Stephanie Freeman, and Michael Yanklowski to in-charge accountants. All previously served as experienced assistant accountants in the healthcare/tax-exempt division of the firm.
architecture Jeffrey C. Spenard has joined Beardsley Design Associates Architecture, Engineering & Landscape Architecture, P.C. as senior architect and project manager. Spenard has worked professionally in multiple national firms for the past 25 years and is a registered architect in New York State. Kerry Tarolli, an asSpenard sociate at King + King Architects, LLC, was recently promoted to project manager in the K-12 Studio. She has been with King + King for six years. Tarolli earned a bachelor’s degree in European history as well as French Tarolli language and literature from Union College, and a master’s degree in architecture from Syracuse University.
operations of scheduling interpreters in vast arenas such as educational, medical, and legal. Grimes’ bilingual skills are an asset as she will be acting as our Spanish-speaking representative.
employment AGENCIES Professionals Incorporated has added Angie Sidorovski to the staff as a research recruiter. In this newly developed role, Sidorovski will support a team of technical recruiters in essential functions, specifically in the information technology and engineering fields. She brings 13 years Sidorovski staffing and recruiting experience to the team. Sidorovski holds a bachelor’s degree in business administration from Indiana University.
nonprofitS Maureen Campanie has been promoted to associate director of the Madison County Council on Alcoholism and Substance Abuse, Inc., known as BRIDGES. Campanie has been with the orCampanie ganization since 2003, serving as preventionprograms coordinator. Unity House of Cayuga County, Inc., has promoted Amber Amidon as director of quality assurance. Amidon served as the director of support services at Unity House for the last eight years. Amidon She originally joined Unity House as a Medicaid specialist in 1996 and moved up to positions as a residence manager, day habilitation supervisor, and QA specialist. Amidon graduated from Hartwick College with a bachelor’s degree in management with a minor in religion.
education & training Empire Interpreter Service recently appointed Alison Grimes, a graduate of Syracuse University, assistant to director of spoken languages. She will assist in the day-to-day
sports The Syracuse Crunch has promoted staff members Maggie Walters, Kimber Doolittle, and Amanda Linnertz to new
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roles in the Crunch front office. Walters has been named the director of communications and marketing. She joined the Crunch staff in 2009 after graduation from Syracuse University’s S.I. Walters Newhouse School of Public Communications with a degree in public relations. Doolittle has been named sponsorship services and ticket manager. Doolittle joined the Crunch staff in 2010 after serving as an intern with the team Doolittle during the 2009-10 season. She graduated from Ithaca College in May of 2010 with a degree in journalism. Linnertz has been named community relations and Crunch Foundation manager. She joined the Crunch Linnertz front office in the fall of 2010 after serving as an intern for the team in 2009-10. Linnertz received a bachelor’s degree in communications from Cornell University in 2008 and a master’s degree in sports management from Ithaca College in 2010.
technology Darin Padden has joined INFICON as an engineering project manager for the service tools business line. Before coming to INFICON, he worked as an engineering manager for Eagle Padden American in Rhode Island. Padden holds a bachelor’s degree in mechanical engineering technology and a master’s degree in manufacturing and leadership, both from Rochester Institute of Technology. Daniel McMahon has joined INFICON as a key account manager for the semiconductor business line. He previously worked for Brooks Automation as sales account manager for the East Coast. McMahon holds a bachelor’s degree in electrical and electronic engineering from the University of Portsmouth in the United Kingdom. SRC, Inc. has announced Gary Sauer as vice president, business development. Sauer previously served as general manager for the defense systems group at Applied Research Associates. He also worked as
director of programs and business development at BAE Systems and a program manager with the Defense Advanced Research Projects Agency. He has 22 years active military experience with Sauer the U.S. Army. Sauer holds a bachelor’s degree in civil engineering from the U.S. Military Academy at West Point, a master’s degree of military arts and science in strategic planning from the School of Advanced Military Studies, an MBA from Central Michigan University, and executive fellowships from Harvard University and Massachusetts Institute of Technology. SRC has promoted Paul McGuire to director of security. He will manage the security staff at SRC’s corporate headquarters and regional offices. McGuire brings 25 years experience McGuire in industrial security, emergency services, and facility services to this role. He was previously SRC’s manager, special security programs. Prior to joining SRC, he held positions with the Institute for Defense Analysis in Princeton, N.J. and with Lockheed Martin Corp. at various locations. McGuire has an associate degree from Fulton-Montgomery Community College in Johnstown. CXtec named Jenny L. Champeau vice president of sales. Champeau joined CXtec in 2011 as director of sales. She has extensive sales and marketing expertise, with more than 23 years experience Champeau in technology-focused sales. In more than 20 years at Unisys Corporation, Champeau has held a number of sales and marketing management positions. Prior to joining CXtec, she most recently served as national field marketing manager at XO Communications. Toshiba Business Solutions announced that Thomas McMahon has been promoted to regional sales manager for Central New York. With more than 10 years at Toshiba, he was previously a color specialist before moving into the role of selling McMahon sales manager. Thomas will lead sales growth in the Utica, Watertown, Binghamton, and Syracuse markets. q
• The Central New York Business Journal
February 10, 2012
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