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Skewed: Watertown brewpub gets off to a fast start. Page 3.

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February 14, 2014 • $2.00

CNYBJ.COM

Ioxus forges triple-digit growth

Kinney Drugs, partners open in-store health clinic

BY NORMAN POLTENSON JOURNAL STAFF

BY ERIC REINHARDT

ONEONTA — At the start of 2014, Ioxus, Inc. leased an additional 24,000 square feet of manufacturing space. The hightech company, which is nearing production capacity, expects to open a second Oneonta facility in April for electrode and module assemblies of its ultracapacitors. Ioxus was founded in 2007 and in headquartered in Oneonta in the former National Soccer Hall of Fame. Its two plants in Oneonta (40,000 and 24,000 square feet, respectively) are complemented by a research and development lab near Schenectady and another manufacturing plant in Japan (30,000 square feet), acquired in 2012 for its expertise in producing lightweight, high-power, and high-energy density cells using a prismatic pouch design. “Ioxus is the only fully integrated ultracapacitor design and manufacturing facility in North America,” says Mark E. McGough, the company’s president and ■ For more CEO. “We produce a technology/ family of energy-storage innovation/ products for transportatelecom tion, renewable-energy, news, please and industrial applicasee our spetions. Our proprietary cial report. ultracapacitors provide Section B. modules in a wide

JOURNAL STAFF

NORMAN POLTENSON/THE CENTRAL NEW YORK BUSINESS JOURNAL

Mark E. McGough, president and CEO of Ioxus, Inc., stands on a balcony above the production floor. The company produces ultracapacitors for the transportation and renewable-energy industrials, as well as for other industrial applications. McGough is holding an iMOD module from the shipment immediately behind him. voltage range and in different configurations.” Capacitors are electric-circuit elements designed to store an electric charge temporarily and have been used for more than 100 years to augment batteries by quickly absorbing and discharging energy. “Ultracapacitors are now 1,000 times more powerful than batteries and are capable of cycling (charging and recharging) a million times,” exclaims McGough. “They are both reliable and also operate in a wide temperature range.” Ioxus is owned by a group of venturecapital funds. In June 2008, the company raised $5 million in its series-A offer.

The series-B offer 27 months later raised $25 million. The series-C offer, which opened in July 2013 and is still open, has raised $16 million to date. Ioxus is already considering a series-D offer. The investors include Braemar Energy Ventures; Northwater Capital Management Inc.; Aster Capital, comprised of Alstom SA, Schneider Electric SA, and Solvay SA; and Energy Technology Ventures, a joint venture of General Electric, ConocoPhillips, and NRG Energy, Inc. The series-C offer was led by The Westerly Group. See IOXUS, page 4

SYRACUSE — Kinney Drugs on Feb. 10 formally opened a health clinic inside its store at 104 Lafayette Road in Syracuse, providing customers a variety of health-care services. The “Healthy You Wellness Center” is a collaboration and partnership between Kinney Drugs, Inc.; Pulmonary Health Physicians, PC; and the Franciscan Companies, an affiliate of St. Joseph’s Hospital Health Center of Syracuse. See KINNEY, page 11

ERIC REINHARDT/CNYBJ

Mike Duteau, vice president of business development and strategic relations at Kinney Drugs, Inc., on Feb. 10 delivers remarks at the formal opening of the Healthy You Wellness Center.

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2 • The Central New York Business Journal

CNYBJ BRIEFS News of note for and about Central New York businesses

Blue Ocean’s Sarenski receives AICPA’s Personal Financial Planning Distinguished Service Award SYRACUSE — The American Institute of CPAs (AICPA) recently recognized Ted Sarenski, president and CEO of Blue Ocean Strategic Capital, LLC in Syracuse, with its 2013 Personal Financial Planning Distinguished Service Award. AICPA gives the award to a member volunteer who contributes significantly to the advancement of personal financial planning as a practice discipline, according to a news release from AICPA. Sarenski Sarenski received the award at the AICPA Advanced Personal Financial Planning Conference in Las Vegas. “Through tireless dedication and service, Ted has strengthened the CPA financial planning profession and elevated the knowledge of his peers across the country,” Jeannette Koger, vice president of member specialization and credentialing at AICPA, said in the release. “He exemplifies the best qualities of a CPA financial planner.” Over the past decade, Sarenski has served on the Personal Financial Planning (PFP) Division’s executive committee and on the National CPA Financial Literacy Commission. He chairs the PFP division’s elder planning task force. Sarenski wrote the “CPA’s Guide to Social Security Planning” and was a key contributor to the PFP division’s consumer guide to endof-life planning, according to AICPA. He speaks at conferences across the country on Social Security, retirement planning, and elder planning.

Cayuga County Chamber names new board of directors AUBURN — The Cayuga County Chamber of Commerce has appointed its board of directors for 2014. The officers are: chair, David Tehan, Karpinski, Stapleton, & Tehan, P.C.; vice chair, Sue Edinger, Inns of Aurora; past chair, Liz Smith, Unity House of Cayuga County, Inc.; treasurer and corporate secretary, Christopher Alger, Grossman St. Amour, CPAs; legal counsel, Patrick Carbonaro, Carbonaro Law Offices. The other board directors are: Michelle Barber, Five Star Bank; Charles Bouley, Jr., Bouley Associates, Inc.; Allison DiMatteo, Crème Della Crème Copywriting; Richard Elliott, Beardsley Design Associates; Kevin Ellis, Cayuga Marketing, LLC; Tom Filiak, Auburn Community Hospital; Edward Galka, Johnston Paper Company Inc.; Mike Gordon, Crown Realty; Lisa Myers, MerryGo-Round Playhouse; Jeffrey Pirrozolo, Auburn Enlarged City School District; and William Speck, Cayuga-Onondaga BOCES The board of directors is responsible for establishing procedure and formulating policy for the Cayuga County Chamber. Board directors are selected by a nominating committee consisting of five members of the chamber.

February 14, 2014

New York Fed survey: consumers expect larger increase in wages By Adam Rombel Journal staff

A

  merican consumers have boosted   their expectations for earnings this   year, according to new survey results the Federal Reserve Bank of New York released on Feb. 10. The New York Fed’s Survey of Consumer Expectations’ results for January show that earnings-growth expectations over the next 12 months rose from 1.8 percent in December to 2.4 percent last month, with income and spending growth expectations also increasing slightly. Meanwhile, consumer expectations for inflation fell slightly, the results show. The survey provides insight into Americans’ views on inflation, prices, the labor market, and household finance, the New York Fed says. Other results from the January survey findings include:

Inflation

• Consumer inflation expectations fell slightly in January to 3 percent for both oneyear ahead and three years into the future.

One-year ahead earnings-growth expectations Median expected earnings growth Median expected earnings growth

6% 5% 4% 3% 2% 1% 0 June 2013

July 2013

Aug. 2013

Sept. 2013

F

david kavney

Nov. 2013

Dec. 2014

Jan. 2014

source: new york fed survey of consumer expectations

• Consumer expectations for most commodity price changes stayed stable in January, with health-care cost expectations reversing the increase observed in the last two months, according to the New York Fed.

Labor market

• Earnings-growth expectations rose from 1.8 percent (annual rate) in December to 2.4 percent in January. One-fourth of respondents now expect earnings growth of at least 4.4 percent over the next year, the survey found. • Respondents’ average expected probability of leaving their current job (both voluntarily and involuntarily) remained essentially unchanged in January, the New York Fed said. • Survey respondents have become more confident about finding another job, with 49 percent expecting to find a job in three months if they were to lose one today,

A Collaborative Effort to Raise the Savings Rate Benefits All   or many people, saving money —   even as little as $10 per week — can   be a difficult task. News stories surface all the time, citing how Americans are saving less money than in the past and what this means for their own financial wellbeing, their families, and the economy as a whole. Indeed, the latest report released in late December from the U.S. Commerce Department shows the household savings rate — measured as the perviewpoint centage of disposable income stashed away — dropped in November to a nine-month low of 4.2 percent. Maintaining higher savings rates is very important as a buffer for the financial challenges we all face. This is true when one considers the economic volatility we’ve seen in recent years in employment and income

Oct. 2013

levels, real-estate and stock-market values, and the availability of credit. As Benjamin Franklin said, “A penny saved is a penny earned.” One way for everyone, including those of us who live and work in Central New York, is to encourage more individuals to save and to participate in “America Saves Week 2014” from Feb. 24 to March 1. After all, we could all use a little motivation when it comes to saving. America Saves Week provides all of us with the tools to help evaluate our own savings status. It is coordinated by the American Savings Education Council and America Saves, a “nonprofit, research-based social-marketing campaign that seeks to motivate, support and encourage low- and moderate-income households to save money and build wealth.” More than 500 organizations nationwide, including First Niagara, are participating in America Saves Week 2014 to support this important endeavor. In addition to financial institutions, other participants include libraries, colleges and universities, cooperative extensions, industry and trade groups, and not-for-profits.

up from 46 percent in December.  

Household finance

• Household income and spendinggrowth expectations increased slightly by 0.2 percentage points from December to 2.2 percent and 4.8 percent, respectively, the survey found • Perceptions of current credit access relative to one year ago and future credit access relative to today remained flat in January, with a slight decline in the share of consumers expecting easier financing conditions. Each month, the Survey of Consumer Expectations interviews about 1,200 people who are part of a rolling panel, on which each respondent participates in the survey for up to one year, according to the New York Fed. q Contact Rombel at arombel@cnybj.com To date, America Saves has seen more than 350,000 Americans pledge to save nearly $22 million by choosing a savings goal and committing to save a specified amount over a designated period of time. But many more Americans need to assess, pledge, and save, especially when America Saves points out that: n Only 54 percent of Americans say they have a savings plan with specific goals n Only 43 percent of Americans say they have a spending plan that allows them to save enough money to achieve the goals of their savings plan n Only 66 percent of Americas have sufficient emergency funds for unexpected expenses like car repairs or medical bills n Finances are the major cause of stress for workers, leading to higher health-care costs and hurting productivity For most people, savings opportunities fall into three primary areas — emergency funds, retirement, and short-term events like vacations, home repairs, or weddings. Other opportunities can focus on home purchases or college-education financing. We encourage everyone to visit www. americasavesweek.org to see how you can participate in America Saves Week 2014 and chart a savings program to become more financially independent — to your benefit, that of your family, and to your country. q David Kavney is the Central New York market executive for First Niagara Bank.


The Central New York Business Journal • 3

February 14, 2014

Watertown brewpub gets off to a fast start BY MEI WANG CONTRIBUTING WRITER

WATERTOWN — Skewed Brewing Co., a brewpub and restaurant located near the entrance of the Regal Cinema at Salmon Run Mall, opened its doors last October and generated $360,000 in revenue in its first three months. Ryan Chaif, who co-owns the restaurant with his wife Cheryl Chaif, and business partner Mark Crandall, said the start exceeded his expectations. The owners are projecting Skewed Brewing will generate $1.5 million in revenue in 2014. Chaif says the brewpub will achieve this goal by “paying attention to the marketing, adjusting accordingly, and giving customers what they want.” Skewed Brewing’s eclectic menu items include its signature microbrews, self-build cocktails, house-made Skewed beer mustard used on sandwiches, and burger bacon jam. The eatery recently unveiled its winter menu, adding dishes such as Korean Pork Pops and Haddock Toscana. And now, the business has begun brewing craft beers on-premise, starting with a Pale Ale and a Baltic Porter, Chaif says. The 2,400-square-foot eatery, which seats about 90 patrons and currently has almost 50 beers on tap, always welcomes hungry diners after they finish a long movie at Regal Salmon Run. Chaif says big movie releases increase traffic to Skewed Brewing. He hopes to further capitalize on movies by

PHOTO COURTESY OF SKEWED BREWING CO.

Skewed Brewing Co., a brewpub and restaurant located near the entrance of the Regal Cinema at Salmon Run Mall, opened its doors last October and generated $360,000 in revenue in its first three months. naming his brews after movie titles. What’s in a name? Chaif says the inspiration for “Skewed Brewing” came from the idea that doing something out of the norm is skewed, and “it also comes from the math term for when a graph shows skewed distribution, or when something is not the norm,” he notes. Crandall designed the interior of the 40-foot-long stainless steel bar

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inside the restaurant. The owners helped finance their venture though New York Business Development Corporation (NYBDC) funding, and personal savings, Chaif says. But he declined to disclose dollar amounts. Part of the personal savings comes from the first brewpub venture of the Chaifs and Crandall — The Hops Spot, which opened

in June 2011 in Sackets Harbor. Chaif and Crandall had tried “a lot of different beers” to select the most suitable products for the Hops Spot. Then the two partners decided to make their own home-style micro brews. The house-made beer was at first only served on Sunday. Its popularity, however, made it a daily offering at the bar and finally drove the Chaifs and Crandall to open Skewed Brewing. According to Chaif, Skewed Brewing’s target audience is generally 25 to 50 years old. And Chaif doesn’t think his two brewpubs are competing with each other since “They are similar, but different,” he says, noting that the smaller Hops Spot generally draws a younger crowd. Before starting the Hops Spot, Chaif had spent two years in South Korea teaching English and travelled throughout Asia. Prior to his trip to the Far East, he worked in business sales. Chaif’s plan for the future is to start an off-site brewery in five years to support his two brewpubs and other local restaurants. Bette & Cring Construction Group, which is headquartered in Latham and has an office in Watertown, handled the construction of Skewed Brewing as general contractor. Skewed Brewing currently employs 43 people — a mix of eight full time and 35 part time, Chaif says. q Contact The Business Journal at news@cnybj.com

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4 • The Central New York Business Journal

February 14, 2014

IOXUS: Firm sees huge, longer-term growth, especially in the auto industry Continued from page 1

Growth story

The recent venture-capital investment has helped to propel the exponential growth at Ioxus. While Ioxus doesn’t release its revenue figures, Inc. magazine listed it at $5.4 million (2012 figures) with a 467 percent growth rate over the previous year. The magazine also labeled Ioxus as the 38th fastest-growing energy company. As of early February, Ioxus employed 140 people companywide. “We just hired another 11 employees this week,” notes McGough. “We anticipate hiring another 30 to 40 this year.” Current employment places 100 in Oneonta, 15 in Schenectady, and 25 in Japan. New hires in 2014 will support the expanded Oneonta operation. Ioxus’s growth is also propelled by the growing demand for ultracapacitors. “In the short-term,” McGough points out, “Ioxus is focused on ‘winning’ applications. In the transportation industry, we are shipping our ‘ultracaps’ to hybrid-diesel bus manufacturers. Our iMOD modules improve the buses’ fuel economy by 55 percent. They are particularly effective in accelerating from a stop to 5 miles an hour, when the diesel is burning a lot of fuel and generating little torque. We also have a customer setting up a demonstration project for the Long Island Railroad, which serves commuters in the greater metro area. “In the renewable-energy business, our products control blade pitch in the giant wind turbines that are dotting the land,

and drive solar heliostats that are used in solar-panel systems for tracking the sun. The industrial applications for our modules include auto-guided vehicles, cranes, and lift trucks.” While focused on current markets, Ioxus sees huge, longer-term growth, especially in the auto industry. “Hybrid cars represent a fraction of the 80 million cars built worldwide every year,” declares McGough. “In the U.S., which represents nearly a quarter of the world’s demand, the industry is driven by the new CAFÉ standards (corporate average fuel economy) established by the EPA. To meet these standards, car manufacturers need to make their vehicle fleets more efficient. Ioxus can offer hybrids, gas, and diesel cars a product that not only boosts fuel economy but also is priced economically in the $80 to $180 range.” McGough estimates today’s world market for ultracapacitors at around $350 million, growing to $7 billion by 2020. Ioxus projects its market share to be in the 10 percent to 20 percent range by 2020. In the U.S., the company sells its products directly to its customers, in China it sells both directly and through distributors, and in Europe relies only on distributors. Ioxus’s customers are located throughout the U.S., China, Japan, and Europe.

Hiring talent

Ioxus has assembled an impressive management team. McGough has been the president since September 2010. Chad

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Hall, a co-founder of the company, is the vice president for marketing and product management; Ken Rudisuela is chief technology officer; Henry Barber serves as the CFO; Philip Meek is COO; Nick Cataldo is senior vice president for sales and marketing; and Hiroyoshi Okutani is general manager of the company’s Ioxus Power Systems division in Japan. McGough is equally concerned about creating a dynamic production staff. “I interview every candidate before hiring,” stresses McGough. “I can’t afford any deadwood … Everyone has to come to work every day and do an ‘A’ job. We draw our production workers [primarily] from Delaware and Otsego counties … They need to be educated, reliable, capable of cross-training, and willing to grow [in the job]. Ioxus is building world-class products that need to be consistent. That means constant training … Since last year, we have put a priority on learning. “To find Ph.D.s, we need to draw from a wider area. This is a research company at heart where 25 to 30 members of our staff are currently employed in research. We search out candidates in New York and Boston and overseas. We’re the most advanced R&D company in the market and it’s our cutting-edge technology that keeps us ahead of the competition.” The lobby wall at headquarters is filled with the company’s patents, attesting to the emphasis on research. McGough formerly served as the president and CEO of Pentadyne Power Corp.,

Envinta Corp., and Energetics, PLC. He also was a division president at Maxwell Technologies, where he launched a new business unit focused on ultracapacitors. Maxwell is a major competitor of Ioxus. McGough has been instrumental in raising most of the venture capital for Ioxus, and he spearheaded the acquisition of Power Systems Co., Ltd. in Japan. He is often asked why Ioxus chose Oneonta for its headquarters. “First, it’s inexpensive to manufacture here,” posits McGough. “Second, the workforce is dependable. There is a solid work ethic among the area residents. Third, New York state has bent over backwards to help us get started. We have received grants for our research and worker training, loans from the county, and grants from NYSEG to fit out the plant. Both U.S. Senators and our state senator were proactive in reaching out to us to see what we needed. I think we should be the poster child for ‘Start-up New York.’ And fourth, when we spun off from Custom Electronics, my goal was to build a world-class company right here in Oneonta.” Ioxus also received $1.4 million in federal funds through the office of U.S. Sen. Charles Schumer (D–NY). McGough says his goal in the short-term is to quickly build a company with a few hundred million dollars in sales and solid margins. If his projections for a 10 percent to 20 percent share of a $7 billion market in 2020 are accurate, Ioxus could well be a $1 billion company, helping to spearhead the economic revival of the Oneonta community. q Contact Poltenson at npoltenson@cnybj.com


The Central New York Business Journal • 5

February 14, 2014

Junior Achievement of Rochester acquires operating rights in CNY By Journal Staff

J

  unior Achievement (JA) of Rochester   on Feb. 3 announced it has expanded   its service area to include the territory that Junior Achievement of Central New York formerly covered. The organization now operates the largest geographic territory of any single Junior Achievement chapter in New York, delivering programs in 25 counties, it said in a news release. The organization recently changed its name to Junior Achievement of Central Upstate New York, Inc. to reflect its expanded area. JA’s office in Rochester will serve as its headquarters, with offices in Syracuse and a Twin Tiers location in Elmira, the organization said. Patricia Leva, who formerly served as president and CEO of Junior Achievement of Rochester, is leading the new organization. Junior Achievement is the “world’s largest” organization dedicated to youth development, education development, and economic development, according to its news release. Corporate and community volunteers deliver JA programs and give students in kindergarten through high school knowledge and skills in financial literacy, work readiness, and entrepreneurship, the organization said. JA of Rochester served more than 14,000 students in a nine-county region in 2013. It was one of 12 recipients of Junior Achievement USA’s Peak Performance Award for “exceptional growth and financial stability,” JA said. Junior Achievement of Central New York, formerly comprised of a 15-county region spanning from the North Country through Syracuse and Binghamton, reached about 5,000 students in the 2011-2012 academic year. The new organization anticipates having an annual budget exceeding $1 million. The two affiliates’ boards of directors of the have been working on this consolidation for the past year, JA said. The move had the support of the organization’s national office, Junior Achievement USA, the organization added. The acquisition will allow JA to “expand and strengthen” services throughout the entire area, Leva said in the news release. It’ll also provide a “renewed focus” on fulfilling the organization’s mission of “empowering young people to own their economic success,” Leva added. “This consolidation will provide for more efficient and effective delivery of JA programs in the greater Syracuse and Binghamton areas, and will ensure that the students there continue to receive critical life skills through JA programming.” The organization will announce a location for a new Syracuse office and a local staff later this spring. The counties that Junior Achievement of Central Upstate New York now serves include Broome, Cayuga, Chemung, Chenango, Cortland, Delaware, Franklin, Jefferson, Lewis, Livingston, Madison, Monroe, Oneida, Onondaga, Ontario, Oswego, Otsego, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, and Yates. q

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6 â&#x20AC;˘ The Central New York Business Journal

February 14, 2014

Will 2014 Unemployment-Insurance Reforms Save Employers Money?

T

he New York State Department of Labor (NYSDOL) recently acknowledged that the Unemployment Insurance Trust Fund is insolvent with a $3.5 billion deficit. As a result, the state recently implemented changes to the unemployment-insurance law that are purportedly designed to both increase revenue for the trust fund and save employers money. Although it is questionable whether the changes will accomplish the latter goal, VIEWPOINT the NYSDOL claims that employers in the Central New York region will save $16 million over the next 10 years and the entire trust-fund deficit will be paid off by 2016. The new rules are well intentioned, but many employers are likely to see their unemployment-insurance costs increase. For example, it is not uncommon for an employer to be charged for unemployment-insurance benefits initially, but subsequently receive a credit for those charges after the NYSDOL determines the former employee is ineligible or there was otherwise an overpayment. But as of Oct. 1, 2013, employers must submit an adequate response to a notice of potential charges within 10 calendar days or be penalized. If employers

ROBERT C. WHITAKER

fail to timely respond or provide inadequate information, with limited exceptions, employers will no longer receive a credit for overpayments. Employersâ&#x20AC;&#x2122; unemployment contributions relative to employee earnings will also increase in 2014 and every year going forward. Previously, employers only paid unemployment-insurance contributions on the first $8,500 of an employeeâ&#x20AC;&#x2122;s wages. Starting Jan. 1, 2014, employers pay against the first $10,300 of wages. This amount increases each year to a maximum of $13,000 in 2026. After 2026, the wage-base subject to employer contributions will be adjusted to equal 16 percent of the stateâ&#x20AC;&#x2122;s average annual wage. Further, as of Oct. 6, 2014, the minimum weekly unemployment-benefit rate increases from $64 to $100, and the maximum benefit rate increases from $405 to $420 per week. Thereafter, the maximum rate will increase each year until it reaches 50 percent of the stateâ&#x20AC;&#x2122;s average weekly wage. This will of course increase employerâ&#x20AC;&#x2122;s required contributions to the trust fund. But it is not all bad news for employers. Despite rising costs, the state also implemented changes that could help reduce liability for some employers. Specifically, claimants who exhaust their benefits or are otherwise disqualified must now earn 10 times their benefit rate to re-qualify for benefits. Previously claimants only had to earn five times their benefit rate to re-qualify. Another change designed to save em-

This is because the standard for what constitutes disqualifying misconduct under the unemployment-insurance law is rather high and differs from its traditional definition. Consequently, although an employee engages in misconduct that results in his lawful termination, it may not rise to the level required to disqualify him from unemployment benefits. This is a frustrating reality for employers who feel almost anyone can collect unemployment benefits no matter how serious the misconduct. Without question, unemployment insurance is a significant cost to many employers. However, with the right guidance, those costs can often be reduced by ensuring employee disciplinary issues are handled properly. This entails having proper written policies and employee warnings in place and imposing discipline in a consistent manner. The wording of a policy or written warning can determine whether a fired employee receives unemployment benefits. An experienced employment attorney can offer businesses the proper advice to avoid needlessly paying benefits to those who should be disqualified for misconduct. Such proactive management often saves employers substantial money in the long term. q

ployers money relates to severance pay. Previously, former employees could generally collect unemployment-insurance benefits and severance pay simultaneously, if the severance pay was less than the employeeâ&#x20AC;&#x2122;s prior compensation and was not contingent upon the employee remaining unemployed. However, claimants who receive severance pay are now only eligible for unemployment benefits if their severance pay is less than the maximum weekly rate of $420 per week, the initial payment is made more than 30 days after the last day of employment, or the severance pay has stopped when they apply for benefits. Thus, employers must carefully consider the terms of severance agreements and the impact they will have on unemployment-insurance benefits. Ultimately, employers should anticipate that unemployment-insurance costs will increase in 2014. But there are numerous steps they can take to combat this ever-increasing expense. First, employers must provide a thorough and timely response to a notice of potential charges. It is helpful for employers to register with the State Information Data Exchange System (SIDES). SIDES allows employers to correspond electronically with the NYSDOL, reducing the chance that employers fail to meet the required deadline. Aside from compliance with the new rules, many employersâ&#x20AC;&#x2122; unemploymentinsurance contribution rates increase because employees who are fired for misconduct are allowed to collect benefits.

Robert C. Whitaker, Jr. is a partner in the Labor & Employment practice group at Hancock Estabrook, LLP in Syracuse. Contact him at (315) 565-4500 or email: rwhitaker@hancocklaw.com

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Sales/Leasing Information call: Information contained herein is taken from sources deemed reliable, but no warranty or representation is made as to the accuracy of information provided or contained herein and the same is subject to errors, omissions, price changes, or other conditions prior to sale or lease or withdrawal without notice.

Joe Scripa Associate Broker 315-699-9439 cell: 315-575-4845 www.ScripaGroup.com 6872 E. Genesee St. Fayetteville, NY 13066 joe@scripagroup.com


8 • The Central New York Business Journal

Business Journal C e n t r a l

N e w

opinion

Y o r k

Volume 28, No. 7 - February 14, 2014 NEWS Editor-in-Chief........................Adam Rombel arombel@cnybj.com Associate Editor.............Maria J. Carbonaro mcarbonaro@cnybj.com Staff Writers.............................. Eric Reinhardt ereinhardt@cnybj.com ....................................................Norm Poltenson npoltenson@cnybj.com Contributing Writers................Traci DeLore Mei Wang Columnists.......................................Will Barclay Tom Morgan Production Manager.......................Erin Zehr ewebb@cnybj.com Research Manager.................. Nicole Collins ncollins@cnybj.com SALES Sr. Account Manager.......Mary LaMacchia mlamacchia@cnybj.com Account Manager................... Daniel Buddie dbuddie@cnybj.com Marketing .......................BBB Marketing Inc. CIRCULATION Circulation Management....(315) 579-3927 Administrative

It’s Teachers’ Unions vs. the Rest of Us

T

  he teachers’ unions and the   politicians they help elect are   working overtime to kill charter schools in New York. For decades, many inner-city schools have flopped. This has hurt millions of kids. It’s no secret, a lot of these schools are cesspools. Most of the students perform badly. Charter schools, meanwhile, offer a lifeline. Parents love them. They beg to get their kids into the few available slots. They know that kids are performing much better in charters than in public schools. In fact, money much better, according talk to various studies. The greatest gains are by poor kids, black children, and kids who are learning English. Well, how embarrassing for public schools. But never fear, here come the teachers’ unions to the rescue. They funded the Big Apple’s new mayor Bill de Blasio in a big way. He is thanking them by doing their bidding. De Blasio’s administration yanked $210 million from charter-school construction funds. He also says he won’t let charters use empty space in public schools. He wants to charge them rent — in the buildings that parents of charter students already paid for with their property taxes. Teachers’ unions fight charters through-

tom morgan

Publisher..........................Norman Poltenson npoltenson@cnybj.com Chief Operating Officer......Marny Nesher mnesher@cnybj.com Business Manager..................... Kurt Bramer kbramer@cnybj.com

T

The Central New York Business Journal (ISSN #1050-3005) is published every week by CNY Business Review, Inc. All contents copyrighted 2014. All rights reserved. No part of this publication may be reproduced without the written consent of the publisher. Cover Price $2 Subscription Rate $89 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 EMAIL: letters@cnybj.com PHONE: (315) 472-3104

February 14, 2014

out this state and across the country. They spend tens of millions to fight voucher programs. Vouchers send kids to private schools — where they do better than their peers at public schools. Teachers’ unions fight school choice programs. They fight to keep parents from choosing where their kids go to school. Teachers’ unions also fight home schooling. They spend a lot of money to try to ban it. They spend money to get politicians to create thickets of regulations and barriers for home schoolers. They fight to keep home-schooled kids from playing sports or joining the band at the local schools their parents pay for with their property taxes. Teachers’ unions did all they could over the years to kill off as many private schools as they could. They lobbied politicians to hurt parochial schools in various ways. As a result, thousands of Catholic schools have been shuttered. Wonderful achievement, this is. It deserves a plaque for the unions on the Hall of Shame of Education. Because 99 percent of Catholic school kids get a high-school diploma. Because a black or Latino kid who attends a Catholic high school is 2.5 times more likely to graduate college. And these schools operate at a fraction of the cost public schools do — with half the staff. By the way, large percentages of publicschool teachers and administrators send their kids to private and charter schools. What does that tell you? Oh, the politicians do the same. President Obama went out of his way to kill vouchers for a few thousand kids, mostly black, in Washington, D.C. — forced the kids to go back to gritty

public schools. Meanwhile, he and most Washington elites send their kids to private schools. Teachers’ unions are stuffing millions in politicians’ pockets. To get them to fund pre-K programs for all kids. Is this for the kids’ sake? Nope. Too many studies tell us kids benefit very little from pre-K. It’s an open secret that the unions simply want more jobs. For more teachers, who will pay more into union coffers. In short, a primary mission of teachers’ unions is to destroy competition. To preserve union jobs. No matter how many kids’ futures they damage. That is a pretty negative mission. In their obsession to protect jobs, the unions have made it nearly impossible for schools to fire perverts who teach. Ask any superintendent if he or she can get rid of utterly incompetent teachers. In city districts, the very worst teachers get sent to “rubber rooms.” They read newspapers and play on their computers all day. Sometimes, for years, while they still collect their pay. And they still collect their pensions — no matter how terribly they did their jobs. Their unions, on another negative mission, protect them. I know, I know, you might say, but, teachers’ unions do a lot of good. They also do an enormous amount of unsavory stuff. I don’t know how their leaders can sleep at night.  From Tom...as in Morgan. q Tom Morgan writes about political, financial, and other subjects from his home near Oneonta, in addition to his radio shows and TV show. For more information about him, visit his website at www.tomasinmorgan.com

The Good and the Bad of the Governor’s Budget Proposals

  he governor’s 2014-15 proposed   budget includes his funding and   programmatic requests on environmental conservation. As with much of his proposed budget, there are some good ideas and some not-so-great ideas on this topic. The governor has proposed several items that are popular with sportsmen. It’s estimated that New York sportsmen and women have a $9 billion ripple effect on the state’s economy, so proposals that benefit this industry are good economically and culturally. Some of the hunting opinion and fishing changes that are helpful, and will hopefully attract more people to the sports, include: n  Authorizing the Department of Environmental Conservation (DEC) to reinstate crossbow regulations. This would allow people to hunt big and small game with a crossbow. It also reduces the distance from an occupied structure from 500 feet to 150 feet for discharge of a crossbow or longbow. n  Authorizing the DEC to offer promotional, reduced-cost licenses for up to 10 days per year, and to designate eight free sport-

will barclay

fishing days per year. n  Creating three-year and five-year license options for hunting, fishing, trapping, and other activities, and reducing the price of the seven-day fishing license. n  Creating an “adventure license.” This is a driver’s license that includes optional icons for hunting and fishing-license designations. Also included in the budget is increased funding for state parks and historic sites. The following are the governor’s proposals that are either problematic or need more discussion: n  Eliminating funding for maple producers, the Northern New York Agricultural Development Program, and significantly reducing funding for New York apple growers, and rabies-vaccine programs. These are all bad ideas. I will fight to restore all of these through budget negotiations. n  Decreasing local aid for programs that manage invasive species and pests. Foreign invaders and pests pose problems for farmers and for our recreational and commercial waterways. We should increase funding to manage these situations, not reduce funds. I’m hopeful through negotiations, this can change. n  Creating multiple state-of-the-art weather-detection systems. The governor wants to invest $15 million in federal funds to create more than 100 weather stations. New York currently has 27. The theory is more weather stations will assist emergency responders

with “extreme weather events.” I’m not sure this is true or that the stations are necessary. While we should be focused on improving our response to emergencies, this sounds excessive, and future funding for these stations remains a question. n  Mandating gas stations across the state near “strategic upstate highways” be pre-wired for generators. Following Hurricane Sandy, the state mandated that “downstate” gas stations within one-half mile of highways and evacuation routes be pre-wired for generators, to be able to assist the public within 24-48 hours of a declared emergency or power outage. Though federal grant dollars are available, it has been reported that these grants won’t cover the cost of installing the generators. n  Failing to repeal 18-A altogether. While this budget proposes a phase-out of the assessment on utilities, and repeals it immediately for industrial customers, small businesses and consumers will have to wait until 2017 to see it completely disappear. q William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.


The Central New York Business Journal • 9

February 14, 2014

PEOPLE ON THE MOVE: new hires & promotions accounting D’Arcangelo & Co., LLP recently hired Kandi M. Humpf in its Utica office as an administrative assistant. Humpf received her associate degree from the Utica School of Commerce. Dannible & McKee, LLP has added two new members to its tax and marketing departments. Matthew E. Schiesser joins the firm’s tax department. He graduated from SUNY Oneonta with a bachelor’s degree in accounting with a concentration in marketing. Suvesha Vengatesh joins the firm’s marketing department. She is a public relations graduate student at Syracuse University. Vengatesh is a native of India and graduated from Bharathiar University with a bachelor’s degree in commerce. She also earned a postgraduate diploma in International Business. Fust Charles Chambers LLP has promoted Meghan Bankowski to senior manager in the audit department. She joined the firm in 2006 after receiving her accounting degree from Le Moyne College; she is also a CPA. Bankowski

architecture Lake Architectural has promoted Mark Mareane to studio leader. He has been with Lake Architectural for more than three years and has had the opportunity to work directly under the principal and owner Wayne LaFrance Mareane in shaping his skills and creating sustainably built environments.

education & training Onondaga Community College has appointed Michael Borsz as athletics director. He has significant experience as an athletic administrator and coach in leading college athletics programs at Wells College, Catholic University in Borsz Washington, D.C., and Colgate University. Borsz earned a bachelor’s degree from Hobart College and holds a master’s degree in education from Catholic University. Utica College’s School of Business and Justice Studies recently welcomed James C. Brown and Raymond L. Philo as professors of practice in criminal justice. Brown has accepted a full-time faculty position in the School of Business and Justice Studies after having served as the vice president of the school of online and extended studies. Since 2005, he has served in multiple senior administrative roles at Utica College. Brown holds a bachelor’s degree in criminal justice from UC, a master’s in public administration from Sage Graduate School, and a doctorate in education from the University of Phoenix School of Advanced Studies in educational leadership. His diverse background includes a 16-year career as a police officer, police commander, and serving as Oneida County’s

first and youngest-ever chief deputy of operations with the Oneida County Sheriff’s Office. Brown also served as a police officer and assistant chief of police for the Village of Frankfort and City of Sherrill Police Department. Brown was recently sworn in as one of five commissioners on the New Hartford Police Commission. Philco is the director of UC’s economic crime investigation board and institute. He was a member of the New Hartford Police Department for 30 years and was promoted to chief in 1993. Philco holds a bachelor’s degree from UC and a master’s degree in political science/ public administration from Marist College.

health care Lyndsey Bauer, Ph.D., has joined Faxton St. Luke’s Healthcare’s (FSLH) Adirondack Community Physicians (ACP) Neuro Sciences Group as a neuropsychologist. Prior to joining ACP, she was employed by Upstate Medical University in Syracuse as a neuropsychologist. Bauer received her bachelor’s degree in Bauer psychology from Bates College in Lewiston, Maine, and her master’s and doctorate degrees in clinical psychology from the University at Albany, State University of New York. Kari L. Moorhead has joined FSLH’s ACP Moorhead Washington Mills Medical Office as a physician assistant. She previously worked as a physician assistant in family practice at Slocum-Dickson Medical Group in New Hartford, Independent Physicians Urgent Care in Utica, and Bassett Healthcare Urgent Care in Herkimer. Moorhead received her bachelor’s degree in psychology from Niagara University in Niagara Falls, and her master’s degree in physician assistant studies from the Medical University of South Carolina in Charleston. Paul Aridgides, M.D., has joined SUNY Upstate Medical University as assistant professor of radiation oncology, seeing patients at Upstate University Hospital and Oswego County Radiation Oncology. He Aridgides earned his medical degree at Upstate Medical University. Following an internship at St. Vincent’s Hospital in New York, Aridgides completed residency training in the field of radiation oncology at Upstate, where he served as chief resident. He recently completed a pediatric radiation oncology fellowship program at St. Jude Children’s Research Hospital. He is published in the areas of lung cancer and Hodgkin’s lymphoma. Mary Knepper has joined the Foundation for Upstate Medical University as director of the College of Health Professions and College of Nursing Alumni Associations. She was grants manager at St. Joseph’s Hospital Health Center for 12 years. Andrea Intartaglia Berg, M.D., has joined Upstate’s Department of Medicine as an assistant professor, specializing in geriatric medicine. She received her medical degree from George Washington University School

of Medicine and completed her medical internship and residency at Yale New Haven Hospital’s Primary Care program. Intartaglia then completed the Harvard Fellowship in Geriatric Medicine and served as an attending primary care provider at the Newton Wellesley Hospital in Massachusetts. Ann Markle has been named director of nursing for Adult Inpatient Services at Upstate’s Downtown Campus. Since joining Upstate in 1991, she has held both staff and leadership positions within nursing and case management. Prior to taking on these additional responsibilities, she served as the director for the Inpatient Surgical Services. Markle is board-certified in case management by the American Nurses Credentialing Center. The following individuals joined St. Joseph’s Hospital Health Center’s active medical staff. With the specialty of surgery (urology) Gary D. Bozeman, M.D. and Elizabeth W. Bozeman, M.D.; critical care intensivist, David W. Kelley, D.O.; and in family medicine James A. Loomis, M.D. and Austin Tsai, M.D.

insurance Tammy Hatton was recently promoted to auto physical damage claims specialist at Preferred Mutual Insurance Company. She has been with Preferred Mutual for 26 years, and has held multiple positions in claims during that Hatton time. Hatton holds the AIC, AIS, and SCLA Gold insurance accreditations. Dean Ingersoll has joined Preferred Mutual as a commercial lines production underwriter. He has more than 23 years of underwriting experience, Ingersoll including 15 years in commercial lines. Most recently, Ingersoll was a small business product analyst in the underwriting department of another regional insurance carrier. He has a bachelor’s degree in business administration from SUNY College of Technology.

law Smith Sovik has welcomed Christopher F. DeFrancesco and Shane P. Simon as associate attorneys at the firm. DeFrancesco graduated from Syracuse University College of Law and holds a bachelor’s degree from SUNY College of Environmental Sciences and Forestry. Prior to joining Smith DeFrancesco Sovik, he was an extern for the Honorable John C. Cherundolo and clerked with the Albany County District Attorney’s Office. Simon graduated from Syracuse University College of Law and holds a bachelor’s degree from Hobart Simon College. Prior to joining Smith Sovik, Simon was a law clerk with U.S.

Attorney’s Office in the Northern District of New York and a summer law clerk for the Honorable Mitchell S. Goldberg in the U.S. District Court for the Eastern District of Pennsylvania. Kenneth T. Boyd has been elected a partner at Smith Sovik. He is a graduate of Binghamton University and Washington College of Law. Boyd is a seasoned trial lawyer and concentrates his practice in civil defense Boyd litigation.

nonprofits Marianne Ferris has been named director of leadership development for United Way of Central New York. She moves into this position from her prior position as loaned executive at United Way. Ferris The Human Services Leadership Council has appointed Loretta Zolkowski as its first executive director. A graduate of the University of Chicago, she was previously employed by POMCO Group and Carrier (UTC). Zolkowski has Zolkowski not-for-profit experience as board member and chair for such diverse organizations as the YWCA, Junior Achievement, and the Matilda Joslyn Gage Foundation.

technology

Geesaman

Guerra

CXtec has hired Daniel Geesaman, Yasser Guerra, and Steven Reed as account managers. Geesaman joins CXtec’s financial services team. He previously worked as an account executive at Reed WYNIT Distribution, LLC. Guerra joins the international team, focused on the South America region. He was previously employed by Cardinal Health. Guerra holds a degree in accounting from the University of Camagüey in Cuba. Reed joins the company’s enterprise cabling solutions team. Prior to joining CXtec, he served as the vice president of client support at Tickets.com. q

Send your People-on-the-Move news via email to: movers@cnybj.com


10 • The Central New York Business Journal

FEBRUARY 19 n Mohawk Valley Economic Development Luncheon & Presentations beginning at noon at Hart’s Hill Inn, Whitesboro. Sponsored by Genesis and The Chamber Alliance of the Mohawk Valley, the event is for the Herkimer County IDA district. Guest speakers include: Jake DiBari, City of Rome; Mark Feane, Herkimer County Industrial Agency; Mark Reynolds, Mohawk Valley EDGE; Steve Smith, MV Economic Development District; Brian Thomas, City of Utica; and Ken Tompkins, Empire State Development. The cost is $20. RSVP to Reservations@ TheGenesisGroup.org n Developing the Leader Within Seminar from 6 to 8 p.m. This is an event of the HSCT (Human Services Consulting and Training) Seminar Series, hosted by Cornell Cooperative Extension of Broome County. The cost is $89.99 per attendee. To enroll, email HSCT at hsconsultingandtraining@gmail.com. For more information, visit HSCT’s blog at consultingandtraining.blogspot.com

FEBRUARY 25 n CNY BEST Information Session from 5 to 6 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. This session is about the CNY ASTD CNY BEST Learning and Performance Program and the awards application process. Call (315) 546-2783 or email: info@cnyastd.org

FEBRUARY 27 n Greater Binghamton Chamber of Commerce After Hours event from 5 to 7 p.m. at Burger Mondays Bar & Grille at 23 Henry St., Binghamton. Chef/Owner Matt Jones is bringing the taste of New Orleans to Binghamton. The cost for chamber members is $7 in advance or $10 at the door; nonmembers pay $15 in advance or $20 at the door; nonprofit members $6 advance/$8 door; and nonprofit nonmembers $13 advance /$18 door. To register, contact Christine Stezzi at (607) 772-8860 or email: cstezzi@greaterbinghamtonchamber.com. Reservations must be received and paid for by Feb. 24. n CNY SHRM Event: Diversity Matters event from 7:30 to 10 a.m. at the DoubleTree by Hilton Hotel Syracuse, near Carrier Circle in DeWitt. A panel of local experts will be sharing their best practices in the area of diversity. The cost is $40 for SHRM members, $50 for nonmembers. For more information, or to register, visit www. cnyshrm.org

March 4 n Information Breakfast Sponsored by Vistage International from 7:30 to 9:30 a.m. at the Genesee Grand Hotel in Syracuse. The event will model a typical peer advisory group meeting experience by exchanging questions, ideas, and perspectives with some of the top business leaders in the Central New York area. No charge to attend. Register by calling Lou DeBartelo at (315) 246-2328 or email: loudebartelo@ Vistage.com

March 5, 12, 19 n Business Startup Training Program from 9 a.m. to 4:30 p.m. each day on March 5, 12, and 19 at 222 Water St., Binghamton.

February 14, 2014

Business Calendar

OF EVENTS

Offered by the Binghamton University Small Business Development Center (SBDC), participants will learn the tricks of the trade from professionals on how to assess, plan, and start up a business. For a class program and to enroll, contact Ginny Thompson at the SBDC (607) 777-4026, or email: Thompson@binghamton.edu. Class size is limited.

March 7 n CNY BEST Information Session regarding the CNY BEST Learning and Performance Program and the awardsapplication process from noon to 1 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. Call (315) 546-2783 or email: info@cnyastd. org n CNY ASTD Breakfast Club from 7:30 to 9 a.m. at the Gem Diner, 832 Spencer St., Syracuse. This is an informal group for discussions on areas of expertise in learning and development roles. Topic: Change Management. Call (315) 546-2783 or email: info@cnyastd.org

March 10 & 11 n Certified ScrumMaster Workshop at University College, 700 University Ave. Syracuse University’s TEDCenter, in partnership with PMI Institute’s Syracuse Chapter, is offering this two-day workshop. Scrum is an innovative approach to getting work done through collaborative teamwork. Kate Chajka, an engineer at Lockheed Martin, is a certified ScrumMaster. Participants who complete the workshop will be prepared to take the Scrum Alliance examination to become a certified ScrumMaster. For more information or to register for the workshop, contact SU’s TEDCenter at (315) 443-5241, email: TEDCtr@syr.edu, or visit http:// TEDCenter.syr.edu/scrum

March 12 n Leadership Mohawk Valley Follow the Leader Awards Dinner beginning at 5:30 p.m. at the Radisson Hotel in Utica. More event information can be found on the LMV website at www.leadershipmohawkvalley.net

March 19 n CNY BEST Information Session from 8:30 to 9:30 a.m. at MACNY, 5788 Widewaters Parkway, DeWitt. This is an informational session regarding the CNY BEST Learning and Performance Program and the awards-application process. For more information, call (315) 546-2783 or email: info@cnyastd.org

March 26 n Personal Knowledge Management discussion from 7:30 to 9:30 a.m. at The Palace Theatre, 2384 James St., Syracuse. CNY ASTD will discuss personal knowledge

management, curation, and some useful tools. The cost is $25 for ASTD members, and $40 for nonmembers. To register, visit www.cnyastd.org, call (315) 546-2783, or email: info@cnyastd.org

March 27 n Dig Safely New York Excavator Safety Seminar from 8 a.m. to 2 p.m. at SRC Arena at Onondaga Community College. This seminar is free and is regarded as one of the leading industry events for excavators, municipalities, safety professionals, utility personnel, landscapers, engineers, and other industry related stakeholders. To register, visit: https://www.digsafelynewyork.com/dsny/exsem/default.asp n CNY ASTD Member Orientation from 7:30 to 9 a.m. at New Horizons Computer Learning Center, 6711 Towpath Road, DeWitt. This is a discussion of why and how to make the most of membership in CNY ASTD. No charge to attend. To register, visit www.cnyastd.org. For more information, call (315) 546-2783 or email: info@ cnyastd.org

APRIL 2 n F.O.C.U.S. Greater Syracuse event honoring Oren Lyons, Faithkeeper of the Onondaga Nation as the 2014 F.O.C.U.S Wisdom Keeper from 5 to 8 p.m. at the Nicholas J. Pirro Convention Center at Oncenter. The cost is $100 per person/ $150 for patron ticket. Contact Jennifer Creighton at jcreighton@syrgov. net or call (315) 448-8732 with any questions.

May 20 n 2014 CCMR Symposium. Presented by the Cornell Center for Materials Research, the event will include lectures, poster session, and networking opportunities for industry and academia. The 2014 Sproull Lecture will be given by Dr. Albert Fert, winner of the 2007 Nobel Prize in Physics. He will be joined by speakers from IBM, NYU, MIT, and Cornell University. If you are interested in presenting a poster, contact the Industrial Partnerships office: industry@ccmr.cornell.edu. Industry posters are welcome. Registration will be available at http://www.ccmr.cornell.edu/symposium/

ONGOING EVENTS n Every Tuesday, Cayuga Club Toastmasters from 6 to 7 p.m. at Cornell University, Ithaca, Rhodes Hall, 6th Floor, Conference Room #655. Free and easy parking is available nearby at Peterson Lot. For more information, contact Julia Reich, (315) 364-7190 or email: juliareichdesign@ gmail.com n Every Tuesday, Gung Ho Referral Group from noon to 1:30 p.m. at Ruby Tuesday Restaurant, 3220 Erie Blvd., DeWitt. The cost is $10 and includes

lunch. For more information, contact Paul Ellis (315) 475-0392 or email: Paul.Ellis@ ComfortSystemsUSA.com or go to www. GungHoReferrals.com n Every Tuesday, Syracuse Business Connections from 3:30 to 5 p.m. at Hummel’s Office Plus, 6731 Old Collamer Road, DeWitt. The group meets to network and exchange referrals. For more information, email: Deb Angarano at dangarano@ tsys.com n Every Wednesday, Small Business Development Center at OCC from 4 to 6 p.m., Introduction to Business Startup at H-1 Hall. Please call 498-6070 or visit www. onondagasbdc.org n Every Wednesday, Syracuse Business Networking from 6 to 7 p.m. at Barbieri’s Restaurant (upstairs level) located on Main Street in the village of North Syracuse. For more information, call Kim Bachstein at (315) 414-8223 or email: info@ SyracuseBusinessNetworking.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-onone with a counselor from the SBDC for advice and customized assistance opportunities. Scheduled by appointment, call (315) 474-0910 or email: info@thecleantechcenter.com n First and Third Wednesday of each month, Preferred Toastmasters from noon to 1 p.m. at Golden Artist Colors, 188 Bell Road, New Berlin. Contact Jonie Bassett at (607) 847-6154, x1217. n Fourth Wednesday of each month, Preferred Toastmasters from 5:30 to 6:30 p.m. at Chenango County Council of the Arts, 27 W. Main St., Norwich. Contact Jonie Bassett at (607) 847-6154, x1217. 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://1427.toastmastersclubs.org or email: contact-1427@ toastmastersclubs.org n Every Thursday, Free Business Counseling with SCORE from 10 to 11:30 a.m. at the Tioga County Chamber of Commerce, 80 North Ave., Owego. Contact the Tioga County Chamber of Commerce to make an appointment at (607) 687-2020. n Every Thursday, Liverpool Linguists from 7 to 8 p.m. First Thursday of every month at Liverpool Public Library and the remaining Thursdays at Liverpool First Methodist Church, 604 Oswego Road, Liverpool. For details, visit http://Liverpool. toastmastersclubs.org or call (315) 8842668 or 457-2581. 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 sjurkiewicz@centerstateceo.com or call (315) 470-1802. n Third Thursday of each month meet CNY ASTD Meet the Leadership Happy Continued on the next page


The Central New York Business Journal • 11

February 14, 2014

KINNEY: The partners involved say the health

clinic is the “first of its kind” in New York

nary-care options in this area, so it made perfect sense to all of us,” Duteau says. Access to “convenient and affordable” health care is a “growing” concern from the communities that we serve, Duteau said in his initial remarks to open the media event. “We expect the problem to only worsen as millions of more patients gain medical coverage under the Affordable Care Act without the corresponding increase of physicians available to treat them,” he added. A 2013 study by Accenture Research projected that the number of health clinics operating in retail drug stores in the U.S. would more than double from about 1,400 clinics in 2012 to nearly 2,900 in 2015. The report cited capacity constraints at hospitals and primary care physicians’ offices as driving increased partnerships between hospitals, primary care practices, and drugstore operators to open in-store clinics.

Continued from page 1

That’s according to Mike Duteau, vice president of business development and strategic relations at Kinney Drugs, who spoke during a media event introducing the clinic. The partners involved say the health clinic is the “first of its kind” in New York. The Healthy You Wellness Center is available for patients dealing with a pulmonary (lung) problem or who need follow-up after a hospital stay. The clinic is currently open Monday, Wednesday, and Thursday from 4:30 p.m. to 8 p.m. during the initial startup. “We’re continuing to evaluate options and ways to expand those hours,” Duteau said in response to a reporter’s question. Patients aren’t required to make appointments. The clinic will accept payment from most major health-insurance carriers and private pay as well, Duteau added. The formal opening represented “the end result of over two years of planning and strategy by the partnership,” Frank Smith, president and CEO of the Franciscan Companies, said during his brief remarks. The Lafayette road store is “currently the only location” operating under the partnership, Duteau said in response to a question from The Central New York Business Journal. He also believes all of the partners are “currently evaluating next steps.” When The Business Journal asked why the partners chose to locate the in-store clinic in the Valley section of Syracuse, Duteau indicated it followed “a lot of research” and was based on population demographics. “There really is not a lot of immediatecare options or especially not any pulmo-

Lung disease, other ailments

The Kinney Drugs’ Healthy You Wellness Center, which specialists from Pulmonary Health Physicians are staffing, will focus on respiratory-disease management with services that include assessment, treatment, and management for chronic conditions such as COPD (chronic obstructive pulmonary disease), emphysema, bronchitis, and asthma. COPD, worldwide and in the U.S., can arguably be called “an epidemic,” Dr. Thomas Aiello, pulmonologist, said in his remarks. “It’s the third leading cause of death in the United States. It’s the only leading cause of death that is on the rise. It’s the second leading cause of disability,” Aiello said.

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This survey is not a scientific sampling, but offers a quick view of what readers are thinking.

COPD in the U.S. costs the health-care system about $50 billion annually, he said. About two-thirds of that is for acute exacerbations, which Aiello described as “acute worsening of symptoms.” “It’s that particular part of it that we do want to emphasize and impact in a very positive way,” he said. The center also offers preventive health services such as treatment of cold and cough, flu, allergies, and sinus infections. Pulmonary Health Physicians operates locations in Syracuse, Clay, and Fayetteville, according to its website. As part of the initiative, Kinney Drugs and Franciscan Companies are stocking respiratory/pulmonary-related medical equipment and supplies in the Lafayette Road location. The equipment includes nebulizers and CPAP (continuous positive airway pressure) equipment. In addition, Franciscan respiratory thera-

BUSINESS CALENDAR (continued) Hour from 5 to 7 p.m. at Coleman’s, 100 S. Lowell St., Syracuse. Monthly informal networking with the CNY ASTD leadership team and other learning and development professionals. For more information, call (315) 546-2783 or email: info@ cnyastd.org n Every Friday, 40 Above: Workers in Transition from 9:30 to 11:30 a.m. at the library in North Syracuse (NOPL) at 100 Trolleybarn Lane, North Syracuse. Helping workers/job seekers aged 40 and above in search of work. Contact John A. Cruty at (315) 569-3964, or at crutij@yahoo.com

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) 472-3903 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 make an appointment, contact Lynn Hughes at (315) 579-2862 or email Lynn@ TheTechGarden.com n Every second and fourth Friday of each

42% At least once a week

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: andrewpicco@gmail.com n CNY Connects is a networking organization offering 12 groups from which to choose. If you are interested in learning more, contact Amy Kaschel of AK Consulting at akconsult@twcny. rr.com or call (315) 882-6127 or visit www.cnyconnectsonline.com To have your meetings or events in the Business Calendar, email them to movers@cnybj.com

pists and nurses will conduct educational seminars and screenings on site, with a focus on disease prevention and education, according to the news release. Founded in 1903 and headquartered in Gouverneur in St. Lawrence County, Kinney Drugs, Inc. is an employee-owned company that operates 100 drug stores in Central and Northern New York and Vermont, according to the news release. Contact Reinhardt at ereinhardt@cnybj.com

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12 • The Central New York Business Journal

February 14, 2014

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BUSINESS


Technology/ Innovation & Telecom

SPECIAL REPORT

Capraro adapts to Department of Defense cutbacks By Norman Poltenson Journal Staff

“It’s not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” — Charles Darwin UTICA — Darwin’s theory applies equally to organisms and enterprises. Just ask any business person today wrestling with the rapid pace of change. To some it’s a threat; to others it’s an opportunity. Gerard T. Capraro sees opportunity as he adapts Capraro Technologies, Inc. (CTI) to the new economy. “In 2011, CTI generated half its sales from government, the other half from commercial [sources],” says the company president and senior scientist. “With the Department of Defense cutbacks beginning in 2011, it’s now 90/10 [in favor of commercial].” Capraro, majority stockholder in the operating company, just completed 20 years in business. CTI, located in a 5,000-squarefoot, former SBU branch bank and GVH building at 401 Herkimer Road, is an engineering, information-technology (IT) firm that employs 10 and generates $1.5 million in revenue annually. “We have expanded our commercial business by focusing on IT infrastructure and on software development,” notes Capraro. “Our technology experts act as our client’s IT department or as an extension … [of the client’s department]. CTI’s state-of-the-art data center benefits companies of any size with their hosting, cloud computing, disaster-recovery, or surveillance systems and offers a range of support for the medical community, including HIPAA compliance and meaningful-use EMR solutions, for example,

Open EMR.” Capraro Technologies also helps its clients develop and improve their web offerings. “On the development side, our engineers can maximize your searchengine-optimization capabilities, transform your website, and develop custom apps (applications) using open-source tools to reach the … [public because] everyone wants to be mobile. Our ‘intelligent mobile proxy’ can transform a website and customize it for virtually any mobile device. We also developed a product called ‘PocoDoc,’ which reduces the size of Word, Excel, PowerPoint, and PDF files while maintaining their original format. This lets our clients shrink their documents, store, and transmit the files without the need for standard compression.” Capraro also cites security as a growing market for the company’s expertise. Capraro next turns to CTI’s government work. “We have performed R&D for the military for many years,” the company president avers. “Our strengths lie in data and information management and in signal processing.” Capraro’s government research dates back to 1966 when, as a civil servant, he joined the Rome Air Development Center (RADC), where he spent 18 years as a project engineer and then as a task manager for the U.S. Air Force. He garnered his signal-processing experience working on the Space Defense Initiative and worked in other areas such as artificial-intelligence, electromagnetic compatibility, and highpower microwaves. Capraro has a bachelor’s degree in mathematics from Utica College of Syracuse University, and master’s degree and Ph.D. in engineering from Syracuse University. In 1984, Capraro left RADC

Sponsored By:

norman poltenson/THE central new york BUSINESS JOURNAL

Gerard T. Capraro, left, president, and James D. DeLude, right, COO, stand in the boardroom of Capraro Technologies. The 20-year-old company has expanded its commercial business to replace the paucity of defense contracts. and joined Kaman Sciences, headquartered in Colorado Springs. Capraro and John Spina jointly set up a Utica office, which served as a think-tank for the company in upstate New York. The office, located at 258 Genesee St., grew to 55 people over the next nine years. After Capraro left in 1993 to start his own company, Kaman sold the Kaman Sciences subsidiary to ITT for a reported $135 million. The ITT office is currently located at Griffiss Business & Technology Park and employs 150. To take advantage of the rapidly changing business environment, Capraro is assisted by another principal, James D. (Jim) DeLude, the company COO and a minority stockholder. DeLude met Capraro at Kaman Sciences,

where he worked with him from 1991-1993. He joined CTI 10 years ago. “We have been able to adapt quickly, because we focus on our strengths,” says the COO. “Unlike our competitors, CTI is a consulting business, not a VAR (value-added reseller). We’re not pushing hardware or bound by quotas from manufacturers … Second, we have unusual depth in our engineering talent … Third, we leverage our government research, looking for applications in the commercial field. We know that one size doesn’t fit all solutions, so we’re good at listening to our clients and responding to their needs.” CTI competes regularly with Annese [and Associates, Inc.] and M. A.

Polce on the commercial side and M. A. Polce [Consulting, Inc.] and Total Solutions for hosting and cloud services. DeLude also notes that all of the intellectual property (IP) of CTI is owned by CTI. “We have the potential of scaling software that we have developed and applying it to other situations,” he says. “CTI is currently working with a marketing company to convert its inventory of IP for use in alternative areas. While our marketing efforts are focused primarily on Upstate, we have clients in New York City, Tennessee, and Boston. CTI is not limited [geographically] in supporting new clients or current clients who want to expand.” CTI, like many area companies, finds it difficult to recruit new employees. “We reach out to universities like Drexel, RPI, SUNYIT, and Utica College to identify candidates to join the company,” says DeLude. “It’s getting harder to find them. Our best options … [lie] with those who grew up in the Mohawk Valley and have family here. We have tried using a variety of techniques for attracting candidates, including online and social media, but we have met with limited success.” Capraro Technologies relies on local professionals to help steer the company’s success. “Our banking is [done] through NBT, our legal work is handled by Levitt & Gordon of New Hartford, and Vincent J. Gilroy, CPA is our accounting firm,” says Capraro. Part of adapting is ensuring the business succession. “Jim [DeLude] will step in and run the company. We don’t have a formal plan or date yet, but the direction of the company is … [assured],” says Capraro, who is age 70. q Contact Poltenson at npoltenson@cnybj.com


2B • The Central New York Business Journal

TECHNOLOGY/INNOVATION & TELECOM

Launch NY gets $125,000 grant from Blackstone Foundation to fund Entrepreneur Institute BY MEI WANG CONTRIBUTING WRITER

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he Blackstone Charitable Foundation recently awarded Launch New York Inc. (Launch NY) a grant of $125,000 to fund its Entrepreneur Institute. Launch NY is a Buffalo–based nonprofit group aiming to help entrepreneurs and young companies across a 27-county region stretching from Buffalo to Syracuse and down to Binghamton. The Launch NY Entrepreneur Institute will connect entrepreneurs, resource providers, and investors. willexevaluate, from the inside out. AddItour pert, promote, and expand the best existing

programs and services, and create new programs and services where appropriate, according to a Launch NY news release. The institute seeks to boost entrepreneur participation in those programs and services by expanding access and improving marketing. It also intends to increase the participation of women, minorities, and other underserved populations in entrepreneurship, the release stated. The Blackstone grant to Launch NY was one of 17 grants made through the second annual Blackstone Organizational Grants Program, which targets organizations that focus on entrepreneurship and innovation. A total of $1.6 million is being awarded in

2014. Through this competitive program, The Blackstone Charitable Foundation is helping innovative organizations that directly support entrepreneurs to pilot, expand, or replicate projects or programs that will catalyze the growth of successful businesses, industries, and communities, according to the release. “Launch NY is proud that the Blackstone Charitable Foundation recognized the innovative approach Upstate New York leaders developed to support and improve the region’s entrepreneurial ecosystem,” Al Culliton, interim CEO of

February 14, 2014

Launch NY, said. “Blackstone’s support of the Entrepreneur Institute will help Launch NY leverage our region’s resources, sponsor new outreach initiatives, and bolster the Upstate New York entrepreneurial network.” The Entrepreneur Institute will take advantage of Launch NY entrepreneursin-residence that are located strategically across the region to strengthen the entrepreneurial ecosystem by expanding the reach of resources and services available in upstate New York, the organization said. Paul Brooks, former vice president for entrepreneurship programs at the Tech Garden in downtown Syracuse, is Launch NY’s entrepreneur-inresidence for the Syracuse area. q Contact The Business Journal at news@cnybj.com

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ew York has a “new and streamlined” online-filing system to form domestic-business corporations and domestic limited-liability companies (LLCs). Gov. Andrew Cuomo announced the launch of the online filing system in a Feb. 10 news release. Businesses can now file their certificates of incorporation and articles of organization electronically, “saving both time and money,” the governor’s office said. The new system allows the processing of the business filings “in a matter of minutes,” a process that previously “could take more than a week,” Cuomo’s office said. The system also eliminates the need to pay expedited processing fees. “By streamlining the process to create a new business venture, we are making it easier than ever for entrepreneurs to do business in New York,” Cuomo said in the news release. “This innovative upgrade will save employers time and money, allowing them to focus on creating jobs and pursuing new opportunities for growth.” The technology upgrade is part of a series

of agency initiatives that are creating “a more business-friendly environment” in New York, the governor’s office said. It follows the first phase of an electroniclicensing system for Cuomo certain professional disciplines, and the “simpler” sales-tax reporting system that the New York State Department of Taxation and Finance implemented last year, according to Cuomo’s office. Business filers can now expect “more immediate” results, while taxpayers will benefit from a “more efficient” allocation of state resources, Cuomo contends. On average, new businesses file more than 100,000 basic certificates of incorporation and articles of organization with the New York State Department of State annually, according to Cuomo’s office. The online filing system is available Monday through Friday from 6:00 a.m. to 7:30 p.m. through the Department of State’s Division of Corporations website at http:// www.dos.ny.gov/corps/index.html. q

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TECHNOLOGY/INNOVATION & TELECOM

February 14, 2014

Crowsnest develops technology to connect all kinds of cameras to Web BY TRACI DELORE CONTRIBUTING WRITER

SYRACUSE â&#x20AC;&#x201D; Crowsnest Labs isnâ&#x20AC;&#x2122;t just out to win the CenterState CEO Startup Labs Syracuse competition. The companyâ&#x20AC;&#x2122;s founders are also hoping the technology they developed will encourage more entrepreneurs to develop new ideas and new businesses. Michael Kruk and Ian Wilson first began toying with cameras last summer, working to develop an easier way to connect them to the Internet. This isnâ&#x20AC;&#x2122;t smartphone technology, Wilson says, but rather technology to connect cameras, such as security cameras, not already connected. â&#x20AC;&#x153;We believe there is a lot of potential in connecting the Internet and the real world,â&#x20AC;? Kruk says. They initially tested out the platform they developed to connect cameras to the Internet with an automatic Twitter feed featuring a cat. Whenever the cat crossed the path of the camera, the camera automatically snapped a picture and uploaded it to Twitter. With the success of that test, Kruk says, more ideas kept flooding in for additional ways to connect cameras for a variety of purposes including security and even advertising. One example of a security type of request was a customer who used Crowsnestâ&#x20AC;&#x2122;s platform to connect a camera in his driveway to his own technology to capture and process an image. The goal was to recognize a UPS truck when it entered his driveway and open the garage door so the UPS driver could leave the package safely inside his garage. The goal, Wilson says, is to create a platform that will support multiple uses through safe and secure Internet access. Crowsnest is currently testing potential advertising use with a client with a camera placed behind the clientâ&#x20AC;&#x2122;s advertising. â&#x20AC;&#x153;As people walk by it, it will take photos and keep track of the age and gender,â&#x20AC;? he says. The images are analyzed and provide an array of data to the client ranging from who is walking past the ad to who is actually paying attention to it. The thought behind it, he says, is that a client can use that type of information to make sure it is on point with its advertising and actually reaching its target market. Ultimately, Kruk and Wilson say they hope Crowsnestâ&#x20AC;&#x2122;s technology sparks even

PHOTO COURTESY OF CROWSNEST LABS

Ian Wilson, left, and Michael Kruk, right, of Crowsnest Labs in their Syracuse office. They are hoping the technology they developed will encourage more entrepreneurs to develop new ideas and new businesses. more technology growth and other startup companies. Their vision is that others will develop technology that builds off the Crowsnest platform. One area where there is potential, Wilson says, is the growing home-automation market. There is already technology out there where users can handle such tasks as shutting the garage door or turning on the alarm system when they are away from home, typically using their smartphones. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s potential out there to grow a business,â&#x20AC;? Wilson says. The companyâ&#x20AC;&#x2122;s technology currently supports Foscam cameras and Crowsnest offers three levels of access to its platform. The captain level, which is free, allows users to connect one camera and provides 24 hours of cloud storage. The commodore level, at $10 a month, connects two cameras and provides seven days of cloud storage. The admiral level, at $25 a month, connects five cameras and provides 30 days of cloud storage. Kruk and Wilson, who formed Crowsnest in September 2013, received $20,000 for being finalists in the CenterState CEO Startup Labs Syracuse competition and par-

ticipated in a 22-day accelerator program. On Jan. 28, the startup pitched its business plan, along with fellow finalists Centscere, LLC and Regattable, to competition organizers.

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If Crowsnest is crowned the winner on April 14, it will receive a cash prize of $150,000 and marketing and branding services worth $50,000 from Eric Mower + Associates of Syracuse. That money will go a long way toward helping Crowsnest achieve its goals of adding employees and working to market the company and add new clients. Three years from now, Kruk says, he envisions a profitable business with a mix of clients and a trail of new companies formed around Crowsnestâ&#x20AC;&#x2122;s technology. At that point, he says, it would be ideal if the company were acquired and gained the resources to take things to the next level, whatever that may be. In the meantime, the business is already increasing its staff with the addition of a part-time designer and is considering adding a marketing and sales representative. Kruk and Wilson are also doing their due diligence, researching privacy issues, testing the technology, and working to get the word out about Crowsnest, including to potential investors. However, the company will move forward whether or not it wins the competition, Kruk says. Crowsnest (app.crowsnest.io/) is located in the Syracuse Technology Garden at 235 Harrison St. in Syracuse. q

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4B • The Central New York Business Journal

TECHNOLOGY/INNOVATION & TELECOM

February 14, 2014

SAM North America opens extrusiontechnology center in new headquarters BY ERIC REINHARDT JOURNAL STAFF

SCHROEPPEL — SAM North America, LLC, a supplier of converting machinery for package printing, specialty coating, and extrusion coating and laminating, is operating in a new, 10,000-square-foot headquarters. It’s located in the Oswego County Industrial Park at 31 County Route 59 in the town of Schroeppel. SAM North America is a subsidiary of Sung An Machinery Co., Ltd., which is headquartered in South Korea. It also has a European subsidiary, according to the SAM website. The new Oswego County facility includes an extrusion-technology center, for which the firm held an inauguration ceremony on Jan. 21. The extrusion-technology center specializes in the development and evaluation of materials and process techniques to improve flexible packaging and industrial coated and laminated products. The company in 2010 formed SAM North America in Granby as a sales and support organization, says Edward (Ed) Lincoln, vice president of sales at SAM North America. As the business started growing in the region, the firm’s customers began asking A/V Factory-Trained Repair Services projectors electronic screens electronic whiteboards LCD displays DVD players audio CD recorders monitors microphones sound systems portable podiums

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for more and more product development and process support, says Lincoln. “At that point in time, we decided to buy a big building. Stop renting [and] buy a building of our own and install an extrusion-technology center in that building,” he added. SAM North America bought a building in the Oswego County Industrial Park in Schroeppel. “The value of the building and the machine is close to $3 million,” Lincoln says, noting the figure also included the cost to acquire the land. “We bought additional acreage for future expansion.” It houses SAM’s new extrusion coating, lamination, and cast film pilot machine, he added. The firm closed on the building in July 2013 and the renovations started soon after. SAM North America self-financed the project, but it also has an established line of credit through KeyBank, Lincoln says. The Oswego County Industrial Development Agency also provided tax incentives for the effort, he adds. SAM North America currently has six full-time employees, Lincoln says. The firm also hopes to add between two and four additional full-time workers in the next six months. The firm generated “double-digit growth” in each of its first three years in North America, according to Lincoln, who projects similar revenue growth in 2014. He declined to name any of the firm’s customers, saying the company is tied in to “so many confidentiality agreements.” But he described them as multi-national coating and laminating companies. “They’re big,” he says.

When asked if any of the firm’s customers have operations in Central New York, Lincoln indicated the region has companies to which SAM North America would sell products, but they’re not customers yet.

Product line

SAM, a machinery manufacturer, focuses on three product areas. They include extrusion coating and laminating machines, solution coating and laminating machines, and rotogravure printing machines. Extrusion coating and laminating machines produce the flexible packaging for products such as croutons and potato chips. “We take the paper, the films, the foils, and then we melt different various polymers and laminate those to give it some sort of functional structure,” Lincoln says. Its solution coating and laminating machines are used to apply coatings on masking tape, wall-covering paper, and window film. Lincoln also discussed the firm’s printing presses. “Those would be the machines that we manufacture that do all the printing and put the nice graphics on the package on most of the flexible packaging lines, flexible packages you see in a grocery store.” Citing continued growth in the plastics industry, Lincoln says SAM’s customers had a need for focusing on product development to enhance their goods. “So, we decided to build this machine to help them in their R&D efforts for their packaging requirements, but also to promote the sales of our machines.” q Contact Reinhardt at ereinhardt@cnybj.com

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TECHNOLOGY/INNOVATION & TELECOM

February 14, 2014

The Central New York Business Journal â&#x20AC;˘ 5B

A REGION OF ENTREPRENEURS

Upstate New York brain drain is a thing of the past ROB SIMPSON

Young, talented, and highly educated people are choosing to make a future for themselves in the region

A

sk anyone over the age of 35 why they decided to leave upstate New York upon graduation from high school or college and they will tell you it was lack of opportunity. Upstate New York had lost nearly an entire generation to other regions of the country due to the lack of opportunity and forethought. The fight to retain young talent has been

KYLE BLUMIN

a substantial one that the Thruway corridor had been losing in dramatic fashion for years. While other regions such as Northern California, the Research Triangle of North Carolina, the Denver-Boulder area of Colorado, the Austin area of Texas, and recently New York City have grown entrepreneurial ecosystems by attracting and retaining young, talented, and well-educated professionals, upstate New York was losing them at a feverish pace. Those days are truly in the past. As time progresses, the signs of progress are popping up everywhere. Upstate New York has laid the foundation for a sustainable entrepreneurial ecosystem. The down payment of effort that has been happening over the last 10 years is starting to show results. Not only are young, educated adults returning to work at startup companies that are now mature businesses, but students that attended regional colleges and universities are staying to start and build their own highgrowth companies. As a result, service providers such as accounting and legal firms are shifting their focus to address the needs of startups. In addition, the foundation that has been built is attracting substantial angel and venture-capital investment. One example of success is the one-time startup, Terakeet. Founded in 2001, the

company provides an integrative approach to earning web visibility, providing holistic marketing solutions for brands and businesses online. Terakeet now employs more than 50 people in the city of Syracuse. Two of those employees are Shannon Welch and Nicole Owens. Welch is a Central New York native. Originally from Marcellus, she attended Syracuse University, graduating in 2009 with a degree in communications and rhetorical studies. Welch began her career at Terakeet just weeks after graduating, starting as a web-marketing strategist and developing into the director of web analytics over the past two years. Owens was born in Atlanta Ga., but was raised and lived in upstate New York from childhood to adulthood. She attended Le Moyne College, graduating in 2011 with a degree in business marketing and minored in communications. Owens landed her job at Terakeet two months before graduating, starting as a web-marketing strategist and developing into a brand-strategy supervisor role over the past two years. These are two successful women that could have succeeded anywhere. When we asked Shannon and Nicole what led them to stay in the Central New York area, they said finding an employment opportunity in a high-growth

Welch

Owens

tech company played a big role. In addition, they could see that many others in their age group had stayed and found themselves in similar career situations. The vibe and the physical space in Syracuse had definitely changed for the better. It was clear from our discussion with Welch and Owens that they were here to stay. Q: Why are regional university students deciding to stay in Upstate upon graduation? A: Theyâ&#x20AC;&#x2122;re being supported in their desires to build high-growth companies. A shining example is Aaron Godert. He is co-founder and CTO of GiveGab, (located in Ithaca. He grew up in Springville, located about 35 miles south of Buffalo in Erie County) and did his undergraduate work at Canisius College in Buffalo. Godert and his wife moved to Ithaca for graduate school at Cornell. They decided they liked upstate New York and the quality of life it provided their family. In addition to quality of life, See ENTREPRENEURS, page 6B


6B • The Central New York Business Journal

TECHNOLOGY/INNOVATION & TELECOM

February 14, 2014

North Country communities benefit from high-speed Internet project BY ERIC REINHARDT JOURNAL STAFF

A

reas of the North Country are among more than 70 rural communities in New York, Pennsylvania, and Vermont benefitting from a $50 million project that installed high-speed Internet service. Independent Optical Network (ION), an Albany–based statewide fiber network, started the project in September 2010 and finished its work at the end of December, says Jim Becker, CEO of ION. ION is a subsidiary of Bellows, Vt.–based Sovernet Communications, which provides Internet and telecommunication services throughout New England, according to an ION news release about the project. Of the more than 70 communities affected, about one-third are located in areas of Jefferson, Lewis, St. Lawrence, and neighboring counties, Becker says. The neighboring counties include Oneida, Franklin, Essex, and Clinton counties, according to David Wolf, general manager of DANC’s telecommunications division. The connected communities include Lowville, Gouverneur, Star Lake, Tupper Lake, Saranac Lake, Lake Placid, Elizabethtown, Plattsburgh, Malone and Potsdam, Wolf said in an email message. The project also resulted in additional service in Canton, Alexandria Bay, Harrisville,

Cape Vincent, and Watertown, Wolf added. ION’s work in the past decade has connected more than 100 upstate New York communities and their surrounding areas with its more than 3,000 mile network, the firm said in the news release. A $3 million investment from the Development Authority of the North Country (DANC) was part of the overall $50 million investment that also included a federal investment of $39.7 million, $6.7 million from ION, and a $3.2 million investment from Empire State Development. The federal American Recovery and Reinvestment Act (ARRA) project funded more than 1,400 miles of fiber-optic wiring, bringing broadband speeds to rural areas that had been at a “competitive disadvantage” when it came to broadband connections, ION said. Its network can serve more than 300 anchor institutions, including libraries, state and community colleges, state and county agencies, and health care organizations, and is currently connected to more than 130 of those institutions. The anchor institutions include the State University of New York Institute of Technology in Marcy and the Trudeau Institute in Saranac Lake. In addition to these organizations, the project makes broadband more readily available to 250,000 households and 38,000 businesses in the three states impacted, ac-

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lular providers, national and regional telecommunications carriers, rural service providers, as well as large businesses and enterprise throughout upstate New York and parts of Pennsylvania and Vermont. “We’ll carry traffic for the cell carriers. We’ll carry traffic for the ISPs (Internet-service providers). We’ll carry traffic for the larger voice [companies, such as] AT&T and Sprint,” Becker says. Their customers include Westelcom and Stamford, Conn.–based Frontier Communications Corp. (NASDAQ: FTR). Carriers such as Verizon and Time Warner Cable have their own networks, Becker says. The National Telecommunications and Information Administration (NTIA) under its Broadband Technology Opportunities Program (BTOP) awarded funding for the project in late 2009. In addition to the NTIA funding, the New York State Innovation Economy Matching Grant Program awarded ION an additional grant representing 10 percent of the total project cost. q Contact Reinhardt at ereinhardt@cnybj.com

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2014 Book of Lists The Book of Lists is the preferred source for essential information on more than 1,000 of the leading businesses, nonprofits, and key decision makers in the 16-county CNY region.

cording to the ION news release. The communities now have high-speed connection options (up to 10Gb, 40Gb, and 100Gb capabilities) following the project. Overlapping fiber rings exist throughout the network, so that broadband circuits can be automatically switched in another direction in the event of a break in the line or equipment failure. “The construction of the ARRA project has enabled the Development Authority to provide two diverse paths of broadband through the Adirondack Park, linking the western and eastern halves of the North Country. This will provide new opportunities for business, new jobs, and greater economic development for the entire seven-county region,” James Wright, CEO of DANC, said in the ION news release. Wright previously served as a New York State Senator serving Oswego, Jefferson, and St. Lawrence counties. As a carrier-neutral provider, ION built the infrastructure, installing fiber to more than 30,000 poles to allow various service providers to utilize as much bandwidth as they need for their customers’ use. ION currently provides services to cel-

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area has everything a growing company needs Continued from page 5B

the capital available in the region and the access to excellent technical talent allowed Godert and his co-founder, John Rogan, to build their company here. Even though they had opportunities to move elsewhere, Upstate is where they decided to stay. GiveGab, a company that matches nonprofit organizations with volunteers, was founded in 2011. Headquartered in Ithaca, it currently employs 21 people. The employees are mainly graduates of upstate New York–based colleges and universities including Cornell University, Binghamton University, the University at Buffalo, Canisius, Syracuse University, RIT, and Tompkins Cortland Community College. The company has raised more than $2.7 million in seed, angel, and series A venture-capital funding to date. Currently, the company has more than 240 colleges and universities and 3,500 nonprofits on the GiveGab platform and is working with customers around the world that are looking for a better way to engage their volunteers, provide fun opportunities, and track and celebrate their accomplishments within their local communities. Michael Adam Smith, Koby Brandstein, and Michael Amadori are other great examples. They are from Paramus, N.J., Boston, and Buffalo, respectively. All three have started companies in the Syracuse Technology Garden. As a result, they get to follow their passion of helping nonprofits raise money,

developing software to aid in educating learning-disabled students, and reducing food waste by recycling it into dog treats. When we asked these three why they stayed, their answer was very compelling. According to them, the area has everything a growing company needs: affordable rent, a talented and educated workforce, and people willing to support them in their endeavor. The support comes by way of the region’s commitment to helping entrepreneurs. Between the Syracuse Tech Garden, knowledgeable mentors, amazing facilities, grant opportunities, angel and venture capital, business competitions, and networking events, it’s very easy to build a network and plug into the entrepreneurial ecosystem. It’s clear that the upstate New York brain drain is a thing of the past. Young, talented, and highly educated people are choosing to make a future for themselves in the region. Upstate expats are moving back and students from high-quality educational institutions are staying upon graduation. Tangible examples like these will sustain the entrepreneurial success of the future and continue to propel the region as a whole. q Robert M. (Rob) Simpson is president and CEO of CenterState CEO. Contact him via email at: rsimpson@centerstateceo.com. Kyle Blumin is a serial entrepreneur, with multiple business exits, based in upstate New York. He is passionate about driving personal and professional success through entrepreneurship. You can follow Blumin on Twitter @KyleBlumin.


The Central New York Business Journal â&#x20AC;˘ 7B

February 14, 2014

CULTURAL & PERFORMING-ARTS ORGANIZATIONS

THE LIST Research by Nicole Collins ncollins@cnybj.com (315) 579-3911 Twitter: @cnybjresearch

Ranked by 2013 Season Attendance Rank

1. 2.

Upcoming Lists: Feb. 28

Security & Alarm Companies

March 7

Commercial Printers

March 14 March 21

Economic -Development Agencies Architectural Firms and Landscape Architectural Firms

3. 4. 5. 6. 7. 8. . 10.

Now accepting submissions for local construction projects!

11. 12. 13. 14. 15. 16. 17. .

ABOUT THE LIST Information was provided by representatives of listed organizations and their websites. Other groups may have been eligible but did not respond to our requests for information. Organizations had to complete the survey by the deadline to be included on the list. While The Business Journal strives to print accurate information, it is not possible to independently verify all data submitted. We reserve the right to edit entries or delete categories for space considerations.

What constitutes the CNY Region? Central New York includes Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Seneca, St. Lawrence, Tioga, and Tompkins counties.

Need a copy of a list? Electronic versions of all our lists, with additional fields of information and survey contacts, are available for purchase at our website, cnybj.com/ListsResearch.aspx

Want to be on the list? If your company would like to be considered for next yearâ&#x20AC;&#x2122;s list, or another list, please email ncollins@cnybj.com

19. 20. . 22. 23. 24. 25. 26. 27.

Name Address Phone/Website Landmark Theatre 362 S. Salina St. Syracuse, NY 13202 (315) 475-7980/landmarktheatre.org Syracuse Stage 820 E. Genesee St. Syracuse, NY 13210 (315) 443-3275/syracusestage.org Merry-Go-Round Playhouse/Finger Lakes Musical Theatre Festival 17 William St., 2nd Floor Auburn, NY 13021 (315) 255-1785/FingerLakesMTF.com CNY Jazz Arts Foundation Inc. 441 E. Washington St. Syracuse, NY 13202 (315) 479-5299/cnyjazz.org Syracuse Jazz Fest Productions, Inc. 314 North Ave. Syracuse, NY 13206 (315) 437-5627/syracusejazzfest.com Symphoria P.O. Box 1161 Syracuse, NY 13201 (315) 299-5598/ExperienceSymphoria.org Endicott Performing Arts Center 102 Washington Ave. Endicott, NY 13760 (607) 785-8903/endicottarts.com Ogdensburg Command Performances 1100 State St. Ogdensburg, NY 13669 (315) 393-2625/ilovetheatre.org Tri-Cities Opera Company Inc. 315 Clinton St. Binghamton, NY 13905 (607) 729-3444/tricitiesopera.com Society for New Music 438 Brookford Road Syracuse, NY 13224 (315) 446-5733/societyfornewmusic.org Cortland Repertory Theatre 24 Port Watson St. Cortland, NY 13045 (607) 753-6161/cortlandrep.org Cider Mill Playhouse 2 S. Nanticoke Ave. Endicott, NY 13760 (607) 748-7363/cidermillplayhouse.org Auburn Public Theater 8 Exchange St. Auburn, NY 13021 (315) 253-6669/auburnpublictheater.org The Broadway Theatre League 18 Riverside Drive Binghamton, NY 13905 (607) 772-1391/BroadwayInBinghamton.com Catherine Cummings Theater at Cazenovia College 16 Lincklaen St. Cazenovia, NY 13035 (315) 655-STAR/cazenovia.edu/theatre Earlville Opera House Arts Center 18 E. Main St. Earlville, NY 13332 (315) 691-3550/earlvilleoperahouse.com Goodwill Theatre, Inc. 67 Broad St., Suite 210 Johnson City, NY 13790 (607) 772-2404/goodwilltheatre.net FilmInSyracuse 5655 Thompson Road DeWitt, NY 13214 (315) 671-2188/syrfilm.com Binghamton Philharmonic 168 Water St., 4th Floor Binghamton, NY 13901 (607) 722-6717/binghamtonphilharmonic.org Syracuse Children's Theater 700 West Manlius St. East Syracuse, NY 13057 (315) 432-KIDS/SCTKids.com Syracuse City Ballet, Inc. 415 Breakspear Road Syracuse, NY 13219 (315) 487-4879/syracusecityballet.com Open Hand Theater 518 Prospect Ave. Syracuse, NY 13208 (315) 476-0466/openhandtheater.org Chenango River Theatre P.O. Box 584 Greene, NY 13778 (607) 656-8499/chenangorivertheatre.org Red House Arts Center 201 S. West St. Syracuse, NY 13202 (315) 425-0405/theredhouse.org Syracuse Friends of Chamber Music 8202 Indian Hill Road Manlius, NY 13104 (315) 682-7720/SyrFCM.org Paul Robeson Performing Arts Company P.O. Box 843 Colvin Station Syracuse, NY 13210 (315) 313-5203/theprpac.org MasterWorks Chorale P.O. Box 27 Marcellus, NY 13108 masterworkschoralecny.org

2013 Season Attendance Performances

2013 Budget: Operating FT Staff Programing Volunteers

Primary Focus

Top Executive

Year Estab.

86,062 NA

NA NA

NA NA

performing-arts center

80,000 135

$5,000,000 $5,000,000

45 45

professional theatre

Timothy Bond, Producing Artistic Director

1974

65,000 244

$415,180 $505,091

270 300

musical theatre, youth theater

Edward Sayles, Producing Director

1958

62,000 200

$381,000 $271,600

2 35

1996

31,000 23

$350,000 $200,000

0 NA

jazz programming in concert, cabaret, Laurance A. Luttinger, Executive Director scholastic, & festival settings, arts-ineducation service, youth-at-risk cultural programs Oscar Peterson, President free admission outdoor summer jazz festival and on campus legends of Frank Malfitano, Executive Director jazz concert series

30,000 54

$1,140,000 $814,000

3 26

23,000 98

$334,000 $298,000

1 150

21,000 29

$355,000 $205,000

1 63

21,000 57

$990,713 $990,713

7 73

opera

Reed W. Smith, General Director

1949

20,200 32

$120,182 $120,182

0 50

performing & commissioning new classical music, especially by regional composers

Robert Bridge, President

1971

17,162 85

$653,350 $653,350

2 125

Kerby Thompson, Producing Artistic 1972 summer musicals, comedies, Director mysteries, dramas, children's shows, day camps, workshops

16,789 128

$500,000 NA

2 67

musical theater, drama, comedy

Maryann Johnson, President Vivian Pack, Secretary

1975

15,000 50

$540,000 $250,000

3 25

professional theater, dance, music, comedy, and film; Auburn Public Studio education space

Carey Eidel, Executive Director

2005

12,500 12

NA NA

6 0

Broadway shows

Albert Nocciolino, President

1976

12,000 50

$60,000 $14,000

0 2

cultural events, lectures, plays, musicals, meetings, theatre camps, fundraisers, and many other events

Colleen Curley Prossner, Theatre Manager

1968

7,666 34

$168,000 $35,000

1 200

concerts featuring roots and original music

Patti Lockwood-Blais, Executive Director

1971

7,000 65

$480,000 $132,000

5 164

high quality professional touring artists and musicians, family friendly programs, local professionals

Naima Kradjian, CEO

2001

7,000 28

$225,000 $195,000

0 85

contemporary, international film for year-round special events and four festival days

Owen Shapiro, Festival Artistic Director

2004

6,900 9

$762,000 $762,000

3 45

classical, chamber, pops

Jon P. Mosbo, Interim Executive Director Heidi Kelley, Executive Director

1956

6,000 27

$450,000 $400,000

3 50

children's theatrical classes and performances

Todd Ellis, Executive Director

1999

6,000 3

$200,000 $150,000

0 NA

dance

Kathleen Rathbun, Artistic Director

1997

5,500 42

NA NA

4 201

puppetry, theater, education

Geoffrey Navias, Artistic Director

1980

5,000 63

$215,000 $215,000

1 5

drama and comedies, both classic and contemporary

Bill Lelbach, Artistic & Managing Director

2006

4,958 73

$1,173,301 $168,884

8 35

2,446 7

$68,700 $55,490

0 50

600 4

$4,000 $6,000

0 10

400 2

$3,765 $23,935

0 NA

classics, pops, family music, music education, and FREE summer performances

Tom Kazmierczak, Executive Director 1928

Catherine Underhill, Managing Director

broadway musicals, concerts, dance, Louis R. Ligouri, Executive Director Patrick Foti, Executive Artistic children's theater, dramatic theater, Director/General Manager performing arts education, special events broadway musicals, drama, dance, Sally Palao, Administrator concerts

1982

2012

1998

1963

theater, music, fine arts, independent Stephen Svoboda, Executive Artistic 2004 cinema Director Laura Austin, Artistic Director classical chamber music

Tom McKay, President

Ryan Johnson-Travis, Executive provide the CNY community with Artistic Director high-quality theater performances that come from an African American tradition perform, promote and preserve choral Kip Coerper, Conductor and Music Director music through artistic excellence for the mutual enjoyment and enrichment of the community and the members of the Chorale

1950

1981

1965


8B â&#x20AC;˘ The Central New York Business Journal

February 14, 2014

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