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Vol. XXVI • No. 7

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Robert Shenfeld, owner of Shenfeld Studio, in his new location in DeWitt. See story, page 8.

BY RICK SELTZER JOURNAL STAFF

BY KEVIN TAMPONE

SYRACUSE — Aspen Athletic Clubs will open a location in downtown Syracuse this spring. The downtown club, which will be Aspen’s third, is planned for Onondaga Tower, the former HSBC Tower at 125 E. Jefferson St. It will be 6,000 square feet and include cardiovascular equipment such as treadmills and elliptical machines, free weights, strength-training resistance machines, and a 10-person

JOURNAL STAFF

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eneral business conditions for New York manufacturers improved in February to reach their highest point since June 2010, according to a monthly sur-

$2.00

See ASPEN, page 5

An Aspen Athletic Clubs employee works with a client on her fitness routine.

N.Y. manufacturing index reaches highest level since 2010 JOURNAL STAFF

spinning room. “We want to cater to the people who want to live downtown, but we also know it’s going to be a very big corporate facility with people who work downtown,” says Nichole Polos, who owns Aspen and manages the company with her husband, Brent Polos. “We do have a few companies that are downtown that have already shown interest in getting corporate programs set up.” Nichole Polos declined to

ERIN ZEHR/THE CENTRAL NEW YORK BUSINESS JOURNAL

BY RICK SELTZER

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Aspen Athletic Clubs to open location in downtown Syracuse

 NEW STUDIO

SYRACUSE — An Albany–based law firm with its sights set on 10 nationwide offices in the next five years will set up its next location in Syracuse. Tully Rinckey PLLC plans to open its local office in April with three attorneys and expects to expand to seven in the following Tully year. The firm is aiming for 10 attorneys in Syracuse within about two years after opening here. Tully Rinckey started in Albany about seven years ago and then expanded to Washington, D.C. and Arlington, Va. Rather than spend years and years building a large firm in a single geography through challenging local recruiting, Tully Rinckey decided to expand through establishing a number of smaller offices in different markets, Founding Partner Mathew Tully says.

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February 17, 2012

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Albany law firm plans Syracuse expansion

See TULLY, page 12

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vey released Feb. 15 by the Federal Reserve Bank of New York. The February 2012 Empire State Manufacturing Survey’s general business conditions index jumped 6 points to 19.5. It has been trending See INDEX, page 12

PHOTO COURTESY OF ASPEN ATHLETIC CLUBS

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• The Central New York Business Journal

CNYBJ.COM BRIEFS

February 17, 2012

Small-business optimism treads water in January By Rick Seltzer Journal Staff

News of note for and about Central New York businesses

Carousel Center expansion gets gold LEED certification SYRACUSE — The U.S. Green Building Council (USGBC) has awarded gold LEED certification to the 1.3 million-square-foot expansion of the Carousel Center shopping mall. The gold level is the second highest in the council’s LEED (Leadership in Energy and Environmental Design) program. The council awarded the certification Feb. 6. “Destiny USA is of a size and significance that it has a unique opportunity to educate the thousands of customers who visit each day about high-performance, energyefficient, healthy green buildings,” USGBC President and CEO Rick Fedrizzi, a Camillus native, said in a news release. “It’s a tremendous model for other retail and commercial enterprises for whom sustainable construction and development are operational imperatives.” The expansion used a variety of techniques to reach the gold level, including conserving 4 million gallons of water annually through a rainwater harvesting system and buying more than 11 million kilowatt hours of green power. In addition, flooring in the expansion is made of crushed walnut shells and cork and the project includes a solar reflective cool roof that conserves energy by keeping the surrounding air at cooler temperatures. A small portion of the expansion is open now with a more complete opening expected later this year. The expansion is 65 percent leased, according to a Feb. 8 article in The Wall Street Journal.

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  mall-business owners boosted their   hopes for future sales in January but   cut back on their hiring plans, according to a monthly survey from the National Federation of Independent Business (NFIB). That left January’s Small Business Optimism Index stalled at 93.9, just 0.1 point higher than December. The index has climbed for five consecutive months, yet still remains at a recession level, according to NFIB, which is a small-business association with members in Washington, D.C. and all 50 state capitals. The index also lags below the level it registered in January 2011. At that time it was 94.1. Business owners expect their sales to improve in the next three months, the index found. The seasonally adjusted net percentage of owners anticipating higher sales inched up one point to 10 percent. Owners were not as optimistic when it came to hiring. Seasonally adjusted, a net 5 percent of survey respondents indicated they plan to increase hiring in the next three months. That is down one point from December. The NFIB calculates net percentages by subtracting the percentage of optimistic survey answers it receives from the percentage of pessimistic answers. A positive net percentage indicates more survey responses were optimistic, while a negative net percentage indicates more responses were pessimistic.

New York director’s comments

Business owners in New York have expressed similar feelings to those in the NFIB’s survey, which is conducted nationally, according to Mike Durant, the organization’s New York State director. “Tax rates in New York have stabilized, but the debate in Washington over higher taxes keeps raging on,” he said in a news release. “Until Washington gets its act together on taxes, regulations, and the federal debt, small-business owners in New York will remain cautious.” Last year was a flat one for small-business optimism, according to the NFIB. And, January’s survey shows that the economy will likely continue to be weak, the organization said.

Other survey findings

Small-business owners ratcheted back their pessimism for business conditions in six months, the survey found. However, negative feelings were still predominant, with a seasonally adjusted net negative three percent predicting better business conditions in the future. That is five percent higher than in December. A majority of owners indicated they plan to decrease their inventories in the next three to six months. Seasonally adjusted, a net

negative three percent said they will boost inventories, which is down five percent from last month. Poor sales remained the most common obstacle listed by business owners, with 22 percent naming sales as their top problem. That was down 1 point from the NFIB’s previous monthly survey. And actual sales were negative in January, the survey found. The seasonally adjusted net percentage of owners reporting higher sales in the last three months than in the previous three months inched up one point to negative 6 percent. That indicator has been moving up since October but still shows more owners experiencing deteriorating sales than improving sales. Reported earnings took a step in the wrong direction for business owners this month, with more stating that their earnings were lower in the previous three months than they had been in the three months before that. Seasonally adjusted, a net negative 24 percent of owners said sales were higher in the last three months than in the prior three months, a dip of 2 points from December. The portion of small-business owners planning to make capital expenditures in the next three to six months remained unchanged from January at 24 percent. The percentage who reported actually making such outlays in the last six months dropped 1 point to 55 percent. The NFIB randomly surveyed 2,155 of its members during the month of January to develop its optimism index. q Contact Seltzer at rseltzer@cnybj.com

Cuomo names SU’s Haynie to state council on returning veterans SYRACUSE — New York Gov. Andrew Cuomo has appointed the leader of the Syracuse University (SU) Institute for Veterans and Military Families to the New York State Council on Returning Veterans and Their Families. Mike Haynie, the executive director of the institute, will serve on the state council, which is made up of state agencies and civilians and advises the governor on issues affecting New York service members. Cuomo named Haynie to the council as part of an “Experience Counts” campaign designed to help veterans find jobs. “It is an honor to have this opportunity to serve the veterans and military families of New York state as a member of the Council on Returning Veterans and Their Families,” Haynie said in a news release. “I look forward to leveraging my experiences as a veteran and an educator to advance the Experience Counts campaign and contribute to the mission of this council.” Haynie served for 14 years in the Air Force and is the Barnes Professor of Entrepreneurship at SU’s Whitman School of Management. He founded the Entrepreneurship Bootcamp for Veterans with Disabilities at SU in 2007.

email your company news to news@cnybj.com

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The Central New York Business Journal • 3

February 17, 2012

Area dealers hope to build on sales momentum with AutoExpo BY RUQING PAN Contributing Writer

SYRACUSE –– Local auto dealers are showing their wares at the 104th Annual Syracuse AutoExpo, in hopes of building on the momentum of rebounding vehicle sales. The new car show features hundreds of cars and trucks spread out through two buildings and four floors totaling 135,000 square feet at the Oncenter and Convention Center in Syracuse. The event, organized by the Syracuse Auto Dealers Association (SADA), kicked off Wednesday Feb. 15, with the 14th Annual Charity Preview, which raised funds for about 15 area nonprofit organizations. The auto show opened to the general public the next day and runs through Feb. 19. Michael W. Spinelli, the show chair for this year’s AutoExpo, says organizers set up a new Outdoor Lifestyles exhibit, featuring motorcycles, all-terrain vehicles, personal water crafts, scooters, and towable boats and campers. But, the big drawing card of the show remains new cars and trucks. “It will be all new vehicles,” he says. “A lot of new models will be in, and different manufacturers will have their new vehicles there.” Spinelli says almost every manufacturer has new models coming out, and is presenting at the auto show.

Crouse CEO honored for excellence in supply-chain management By Journal Staff

SYRACUSE — Dr. Paul Kronenberg, president and CEO of Crouse Hospital, has been named a recipient of the 2012 SURE Award for Excellence in Supply Chain Leadership. The SURE award is Kronenberg presented annually by industry publication Healthcare Purchasing News to health-care executives who “support, understand, recognize and empower” supply-chain management initiatives within their organizations.

The Central New York Business Journal Call (800) 836-3539 today to subscribe

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Vehicles parked on the lot at Crest Cadillac, one of the dealers participating in the 104th Annual Syracuse AutoExpo. Car dealers are hoping to build on the momentum of rebounding vehicle sales. “We’ve been able to set up rooms for everyone,” he says. “Some manufacturers have bigger displays than others, but there’s always been room for everyone who wants to participate ...” Spinelli, co-owner of the Heritage Lincoln dealership in Syracuse, says he sees increased sales activity at his business and for the industry as a whole. “Last year was improving over the year before, and this year’s starting off pretty well,” he says. “Things are definitely get-

ting better than it has been in the past few years.” Jim Barr, chair of the Charity Preview and general manager and vice president at Crest Cadillac and Crest Acura in Syracuse, says the auto market continues to improve since the recession and looks bright for 2012. “Certainly we have some massive growth from 2008 and 2009 — 2010 was a great year, and 2011 was a great year,” he says. “But I expect the economy to continue to

expand, and demand for vehicles can continue to expand.” National sales numbers back up Spinelli’s and Barr’s views of the improving market. The National Automobile Dealers Association (NADA) forecasts a third straight year of rising new vehicle sales. NADA projects 13.95 million new cars and light trucks to be sold in 2012, up from 12.7 million in 2011, 11.55 million in 2010, and 10.4 million in 2009. Spinelli and Barr say the Syracuse auto market wasn’t as affected by the recession, as it didn’t experience the same boom and bust cycles that other fast-growing markets did. “We have been very fortunate from the perspective that we never really had a big bubble,” says Barr. Barr adds that the Syracuse market has fewer dealers than before the recession, reducing competition a bit. He says he sees more people spending on new purchases as the average age of the vehicles on the road continues to rise. NADA says it’s seeing pent-up demand in the auto market as well, with the number of one- to five-year-old used vehicles in short supply and selling at higher prices, according to a Feb. 4 news release from the 95-year-old auto trade group. NADA represents almost 16,000 new-car and truck dealerships, with 32,500 franchises. q Contact The Business Journal at news@cnybj.com

Announcement

George H. Lowe Has Returned To Our Firm Judge Lowe was appointed a United States Magistrate Judge for the Northern District of New York in February 2004. Before taking the bench Judge Lowe had been a partner at Bond, concentrating his practice in white collar criminal defense and federal court civil litigation, for twenty-one years. Prior to joining Bond, Judge Lowe served as the United States Attorney for the Northern District of New York and had a lengthy career as a federal prosecutor. Judge Lowe is a past President of the Onondaga County Bar Association, and a former Chair of the Fifth Judicial District’s Committee on Character and Fitness. He has served on the boards of Legal Services of Central New York and the Onondaga County Bar Foundation. While in practice, Judge Lowe received numerous honors for his service in pro bono cases and is currently co-chair of the New York State Bar Association’s Committee on Access to Justice. In 2007, he received the Onondaga County Bar Association’s Distinguished Lawyer Award. Upon his return to Bond, Judge Lowe will be resident in the firm’s Litigation Department and will again concentrate his practice on white collar criminal defense and complex federal civil litigation. He will use the skills he developed on the bench to serve as a mediator and arbitrator. In addition, Judge Lowe looks forward to continuing a significant role in pro bono matters and other service to the Bar. Judge Lowe is a graduate of Williams College and the Columbia University School of Law.

Contact: glowe@bsk.com | 315.218.8540 One Lincoln Center | Syracuse, NY 13202 | www.bsk.com


4

• The Central New York Business Journal

February 17, 2012

New partner, Hunt, comes on board at Gale law firm By Kevin Tampone Journal Staff

FAYETTEVILLE — Kevin Hunt, formerly at the Sugarman Law Firm in Syracuse, has joined Gale & Dancks, LLC of Fayetteville. The firm’s name will change to Gale Gale & Hunt, LLC as Hunt comes on board. He is joining the firm as Thérèse Wiley Dancks, who helped Catherine Gale found the practice Hunt in 1997, leaves for an eight-year appointment to the federal bench as magistrate judge for the Northern District of New York.

Gale and Dancks previously worked together at Syracuse–based Mackenzie Hughes LLP. When the firm announced Dancks was leaving, Gale says she started getting lots of calls — inquiries from attorneys looking to join up with her firm and calls from other firms looking to merge. When she received a call from Hunt, she says she knew she had found her answer. “He’s very experienced in the trial world,” Gale says. “He’s well known in upstate New York. A lot of our clients know him. The judges know him. It was just a natural fit.” Gale Gale & Hunt focuses on litigation and represents corporations, hospitals, and doctors, frequently in malpractice cases. The firm often takes its cases to trial, Gale says, so landing a lawyer with experience in

the courtroom was a boon. “Kevin called and immediately, we knew he was the person for us,” she adds. “He’s tried 50 cases to verdict.” Hunt and Dancks were actually lawschool classmates, Gale says, and graduated the same year from the Syracuse University College of Law. Hunt also has a bachelor’s degree in economics from Washington & Lee University. His practice focuses on defense of medical, dental, and legal malpractice claims and the defense of catastrophic personal injury claims. Hunt’s hiring comes on the heels of a growth spurt for Gale Gale & Hunt, Gale says. The firm added three new attorneys in 2011 and now has seven on staff. The law firm also employs five paralegals

and added a nurse practitioner last year as well. Many of its cases involve medical matters so the nurse helps with those and educates the staff on various health-care issues, Gale says. The growth has been driven by the firm’s reputation and word of mouth from clients, Gale says. Two new clients in insurance that came on board last year had actually faced off against Gale Gale & Hunt in court. “We were on the other side and they were impressed with the work we did for their opposition,” Gale says. “They’re both out-ofstate companies. So when they needed local counsel, they called us.” q Contact Tampone at ktampone@cnybj.com

Is your business ready for a refresh? The case for an LLC

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  early nine months ago, USA   Today reported that about three   quarters of the nation’s small- and mid-sized business leaders indicated they were anticipating higher revenues in the year ahead, and nearly 60 percent expected rising profits. Among those who expressed confidence in their future, 54 percent expected to hire more employees, and 50 percent were planning to invest in their facilities.

Only time will tell if the cautious enthusiasm turned into reality. What cannot be disputed, however, is growth is often accompanied by change (and the same may be said for business contraction). We know that increased employment and faster growth are factors that often lead businesses to change their legal form of organization. Why? Savvy business owners should constantly be looking for ways to reduce their exposure to risk.

While there is really no way to completely avoid risk, many find that adopting the business form of a limited-liability company (LLC) provides a step in the right direction. What are the potential benefits? An LLC offers many of the legal advantages of a corporation and may help shield the business owner’s personal assets from lawsuits brought against a firm’s products or employees. In theory, financial losses would be

(a) In General. A party may serve on any other party a request within the scope of Rule 26(b): (1) to produce and permit the requesting party or its representative to inspect, copy, test, or sample the following items in the responding party's possession, custody, or control: (A) any designated documents or electronically stored information — including writings, drawings, graphs, charts, photographs, sound recordings, images, and other data or data compilations — stored in any medium from which information can be obtained either directly or, if necessary, after translation by the responding party into a reasonably usable form; or (B) any designated tangible things; or (2) to permit entry onto designated land or other property possessed or controlled by the responding party, so that the requesting party may inspect, measure, survey, photograph, test, or sample the property or any designated object or operation on it. (b) Procedure. (1) Contents of the Request. The request: (A) must describe with reasonable particularity each item or category of items to be inspected; (B) must specify a reasonable time, place, and manner for the inspection and for performing the related acts; and (C) may specify the form or forms in which electronically stored information is to be produced. (2) Responses and Objections. (A) Time to Respond. The party to whom the request is directed must respond in writing within 30 days after being served. A shorter or longer time may be stipulated to under Rule 29 or be ordered by the court. (B) Responding to Each Item. For each item or category, the response must either state that inspection and related activities will be permitted as requested or state an objection to the request, including the reasons.

“ it me ans your hard drives can be targe ted for inspection in Litigation and you have to be prepared.”

(C) Objections. An objection to part of a request must specify the part and permit inspection of the rest. (D) Responding to a Request for Production of Electronically Stored Information. The response may state an objection to a requested form for producing electronically stored information. If the responding party objects to a requested form — or if no form was specified in the request — the party must state the form or forms it intends to use. (E) Producing the Documents or Electronically Stored Information. Unless otherwise stipulated or ordered by the court, these procedures apply to producing documents or electronically stored information:

GAIL KINSELLA

Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com

101 s o u t h s a L i n a s t r e e t, s y r a c u s e , n e w y o r k 132 02 315 -474 -7 571 • w w w. m a c k e n z i e h u g h e s .c o m

67804_MH_LitigationAd_CNYBJ.indd 1

limited to the owner’s stake in the company, but exceptions may include any business debt that has been personally guaranteed or misdeeds (such as fraud) of the owner. An LLC may also be ACCOUNTABILITY simpler to deal with in the formative stages. In many states, an LLC is easier to form than a corporation, and there may be fewer rules and reporting requirements associated with operating an LLC. Single-member LLCs carry the easiest tax-compliance burden of all, so a single owner may find the LLC a favorable option to incorporation. Another potential plus — a board of directors and annual meetings are not usually required in an LLC. From a general tax perspective (not just limited to the single-member LLC noted above), an LLC acts as a pass-through entity for tax purposes, so a company may avoid tax liability by passing profits or losses on to the members (owners), who declare them on their personal tax returns. Members have the latitude to choose whether the company is taxed as a sole proprietorship, a partnership, an S corporation, or a C corporation, provided it would qualify for the particular tax treatment. One caveat: not all conversion transactions are without tax consequence. Finally, think flexibility. The structure of an LLC may help facilitate growth as an unlimited number of owners and/or investors may be added to the business, and ownership stakes may be transferred easily from one member to another. LLCs may also be owned by another business. Perhaps you are thinking now is the time to begin the LLC consideration in earnest. Your first conversation should be with your CPA where you can establish an understanding of the potential benefits and drawbacks, compliance requirements, transition concerns, as well as discuss possible tax consequences and set a solid plan in motion. q

2/2/12 2:59 PM


The Central New York Business Journal • 5

February 17, 2012

ASPEN: Between 20 and 30 employees will work downtown

Onondaga Tower owners seeking to add tenants around Aspen

downtown location that will allow gym users to enroll with a $15 down-payment and monthly payments of $15. That is lower than the club’s typical rate of a $99 down payment and monthly payments of $19. Aspen is leasing the downtown location from CBD Brokerage, LLC. Renovation costs are built into its lease, according to Polos.

Continued from page 1

name interested corporate clients, but said the new club’s location played a role in its size and design. It is smaller than Aspen’s other clubs — the company’s club in Clay is just less than 20,000 square feet, while its location in Cicero is about 25,000 square feet. The downtown location will not have a Kids’ Korner to provide child-care services, a feature at the other Aspen locations. And it will contain 25 pieces of cardiovascular equipment instead of the 100 pieces in each of the company’s suburban clubs. Polos expects many of the people using the downtown club will be on a break from work. “We don’t anticipate nearly as many workouts per day as we do in a suburban setting, and we don’t anticipate workouts that are as long,” she says. “With the corporate setting, people will come and go at pretty much a steady pace, we believe, from the opening of work to the after-work time.” The downtown club will open at 4 a.m., making it available to anyone who wants to exercise before work, Polos says. It will also be open for those who want to exercise at the end of the day, although its closing time has not yet been set in stone. It will likely close at 9 p.m. or 10 p.m., according to Polos. Between 20 and 30 employees will work at the downtown club, and about eight will be full time. Parttime employees will include trainers, front-desk staff, and spinning-class instructors. Nearly all of the downtown club’s employees will be new hires, according to Polos. Aspen will transfer the downtown club’s manager from another location and will try to hire new spinning instructors and certified professional trainers, she says. Aspen is offering universal membership, meaning members who join the downtown club will be able to use the company’s suburban locations. And members in Clay and Cicero will be able to visit the downtown club. The club is offering a pre-sale in February for its

Aspen Athletic Clubs is the first new tenant to sign a lease for space in Onondaga Tower since CBD Companies, the parent of CBD Brokerage, started redeveloping the building in the spring of 2011. The tower contains about 130,000 square feet of rentable space, according to Michael Durkin, a sales and leasing agent at CBD Brokerage. It also holds a fivefloor, 375-space parking garage. That garage is currently under the control of the city of Syracuse. But it is scheduled to revert to the control of the tower’s owners in 2013. The tower’s owner is 360 Warren Associates LLC. CBD Companies’ co-owners Charles Sangster and Courtney Wilson own that company, along with an investment partner, Cadaret, Grant & Co., Inc. They acquired the tower in July 2010 for $1.52 million, according to records from the Onondaga County Office of Real Property Tax Services. CBD Companies moved its headquarters to the tower in April 2011 and occupies 4,500 square feet of space. The tower’s only other current tenant is Resort Funding, LLC, a firm that specializes in providing funding for timeshare and land developers in the leisure industry. Resort Funding takes up 14,000 square feet of space and had an existing lease when 360 Warren Associates purchased the building in 2010. The company recently renewed its lease, Durkin says. CBD Companies has completed about $1 million worth of renovations in Onondaga Tower, according to Durkin. The firm’s construction subsidiary, CBD Construction, LLC, is handling the work. Improvements made to this point include new first-level common-area restrooms and a common-area conference room on the first level. They also include a renovated lobby with an entrance on East Jefferson Street in addition to the tower’s existing entrance on Warren Street. An additional $7 million in renovations are planned, Durkin says. They include updated bathrooms and elevator lobbies on each floor as well as a new heating, ventilation, and air-conditioning system. In addition, work crews will redo the building’s exterior by cleaning its façade and installing new panels underneath its windows. Durkin declined to disclose the source of funding for the renovations. He is hoping to sign an anchor tenant that would fill 28,000 to 42,000 square feet, he says. That tenant would be able to put its name on a sign at the top of the tower. And Durkin is currently negotiating with some smaller tenants. “We’ve got two national food-service groups that are looking at corner retail space,” he says. “And we’ve got larger office tenants looking at the upper floors.” Aspen Athletic Club could help attract some companies to Onondaga Tower, according to Durkin. “There are already businesses that are calling Aspen directly and talking about group discounts,” he says. “Companies like that, once they see what we’re doing here, they might start asking themselves, ‘Is there space here?’” — R.S.

Other Aspen expansion plans

Aspen’s planned Syracuse club is one of several growth efforts. The company also plans to open a new suburban location “very soon,” says Polos. She declined to say where the new suburban club will be located because Aspen has yet to sign a lease. But it will be similar in size to Aspen’s other suburban clubs, she says. Aspen’s current suburban clubs employ about 60 employees. Around 20 of those are full-time workers. The company would eventually like to have locations spread around Syracuse, Polos says. “Our goal is to have clubs in as many suburbs as the need arises, and then keep the downtown location as the core corporate facility,” she says. “Then [we could] possibly do more express locations in the smaller suburbs.” The fitness club recently added a sports-specific training facility to its Cicero location. The facility includes NFL-grade turf on the ground, climbing ropes, ropes to throw, and fitness machines, Polos says. “It’s going to be a huge asset for athletes and crosstraining in general,” she says. “It’s the type of training that’s going to help in daily life and real-life activity — any sport, and really just functional living itself.” The expansion, which opened in February, added 2,500 square feet to the Cicero club, according to Polos. It cost approximately $150,000, including the cost of installing turf and leases on training machines. Aspen financed the expansion with cash reserves, she says. 

Contact Seltzer at rseltzer@cnybj.com

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6

• The Central New York Business Journal

February 17, 2012

Charitable Organizations: What the Politicians Won’t Tell You “I was gratified to be able to answer promptly. I said I don’t know.” —Mark Twain

T

here are less than 9 months before the 2012 presidential election. For the past six months, and the next nine, the answers to questions asked of the candidates will continue to be rhetorical and nebulous, at best. I felt it appropriate to provide clarity and substance to a number of questions that the reader may be asking regarding our nation’s tax-exempt industry and service sector. “Arch the Answer Man” will, in just a few short minutes, provide you with clear NONPROFIT and concise answers MANAGEMENT to questions that you may find of interest. You can fully expect to hear many allegations made by political candidates about our nation’s health, education, arts, and cultural and human-service sectors. Please take most criticism that you hear with a substantial grain of sea salt. In order to truly understand the incredible benefits and economic productivity of the tax-exempt sector, speak with someone knowledgeable and/or do your own research on the subject. Before I begin, I will acknowledge that the tax-exempt sector, like every other business/industry segment, has issues

GERALD J. ARCHIBALD

that need to be addressed. Productivity, cost efficiency, service quality, and value for the dollar, are just a few of the opportunities for improvement. However, in most cases, the solution to these issues begins with the recognition that America’s society and the individual citizen have much higher expectations than what is affordable for this nation to provide. You can look at almost every government-funded program in the nonprofit sector and see opportunities for improvement. However, at the same time, you can recognize that the vast majority of individuals receiving government support and services are justified in their need. Question (Q): What was the total dollar amount of charitable contributions for 2010 in the United States and what percentage came from individuals? Answer (A): Charitable contributions in 2010 totaled just shy of $300 billion, and 73 percent was donated by individuals. The U.S. is number one in the world in charitable giving. Q: What two billionaires have created “The Giving Pledge,” in which wealthy individuals commit to donating more than half of their wealth to charitable endeavors? A: Bill Gates (Microsoft) and Warren Buffett (Berkshire-Hathaway) created The Giving Pledge in 2010. More than 50 billionaires have signed on to the pledge. Of interest locally, Tom Golisano many years ago pledged the majority of his estate , LLC wealth to his foundation, which supports health-care services and people with dis-

“You can look at almost every government-funded program in the nonprofit sector and see opportunities for improvement. “ abilities. Q: Which type of charitable organization receives the greatest amount of charitable contributions each year? A: In 2010, religious organizations received 35 percent of contributions. The education sector was next at 14 percent. Q: How many charitable organizations are registered with the Internal Revenue Service (IRS) as having tax-exempt status, and which one spent the most on program services? A: The U.S. has about 1.4 million nonprofit organizations. The American Red Cross was number one in providing program support and services at more than $3 billion. Q: If an individual donates a car, boat, RV, or other like property, how much of a charitable deduction does the individual receive for tax purposes? A: Based on regulations adopted several years ago, donations of this type qualify for a charitable deduction for only the amount that is received by the charity when it sells the item donated. Deductions for “Blue

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Book” values are no longer allowed. Q: Volunteer efforts and in-kind contributions to charitable organizations are a critical component of balancing the budget for many nonprofits. What percentage of Americans volunteer their time to charitable causes? A: In 2010, the Urban Institute estimated that 26 percent of Americans volunteered their time, believed to be the largest number of any country on the planet. Q: During 2011, the IRS requested that non-routine filers of Form 990 prepare and file Form 990N, so that the IRS could determine whether tax-exempt organizations in their database were still operating. How many nonprofit organizations lost their tax-exempt status by not responding to this IRS request? A: About 275,000 tax-exempt organizations registered with the IRS that lost their tax-exempt status in 2011. The vast majority of these entities were smaller nonprofits and/or those that had ceased operations. Check to see if your organization is on the list at www.irs.gov. Q: What percentage of the charitable organizations in the country have annual operating budgets exceeding $10 million? A: Recent estimates indicate that less than 10 percent (slightly more than 100,000 organizations) had budgets in excess of $10 million. About 90 percent of nonprofits have annual budgets of less than $10 million. See ARCHIBALD, page 15

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The Central New York Business Journal • 7

Manufacturing February 17, 2012

SPECIAL REPORT

New contract leads to expansion at Giovanni Food Co. By Rick Seltzer Journal Staff

DeWITT — The sauce is flowing a little faster these days at Giovanni Food Co., Inc. The DeWitt manufacturer of tomatobased products recently started producing a new line of private-label barbecue sauce that will have it filling more than 1 million jars a year. And it is launching a new brand of its own, called Greenview Kitchen — a premium pasta sauce with a focus on natural ingredients and environmentally friendly production. Giovanni Food has added employees to keep up with the new production. It now has 65 full-time workers, up from 62 just two weeks ago. The firm also employs about 10 temporary workers. The company has added a dozen fulltime workers since the end of November, when it employed 53 full time. Giovanni Food also had eight temporary-to-hire employees at that time. “I didn’t know that we would be adding this many employees,” says Louis DeMent, general manager at the food manufacturer. “It’s definitely been beneficial to us.” Much of the growth is coming from a new three-year private-label contract the company signed to produce barbecue sauce. DeMent declined to name the contracting company or the brand of barbecue sauce that Giovanni Food is producing for it, but said production will be “about a couple million units a year.” Giovanni Food started bottling under the new contract Jan. 9. The contract calls for the manufacturer to produce packages of six jars of barbecue sauce. However, Giovanni Food does not currently have machinery to create six packs — it previously only produced packages of 12 jars. Equipment to create six packs will be in place in June or July, DeMent says. In the mean time, the company is packing those units by hand. About five of its temporary workers were hired to work on that handpacking operation. The equipment to create six packs carries a price tag of about $450,000. Giovanni Food is financing its purchase with a loan from Alliance Bank, N.A., cash reserves, and funding from the company contracting for the barbecue sauce. “The new contract is definitely a significant source of growth for us,” DeMent says. “And all of our other business has grown, generally, which we’re very thankful for.” In addition to barbecue sauce, Giovanni produces pasta sauce, pizza sauce, juice, and salsa. The company traces its history to 1934, when the DeMent family started an Italian-style restaurant in Oswego and sold its sauce to customers. Today, Louis DeMent owns the company with his moth-

rick seltzer/THE CENTRAL NEW YORK BUSINESS JOURNAL

Louis DeMent, general manager and co-owner of Giovanni Food Co., Inc., with jars of the company’s new pasta sauce, Greenview Kitchen, which is made with natural ingredients and through an environmentally friendly production process. er, Mary DeMent. Louis DeMent declined to share Giovanni Food’s revenue in 2011, but says he expects revenue to increase by 10 percent in 2012. Branching out from pasta sauce will likely allow the manufacturer to avoid summertime shutdowns, which have been necessary in the past because of seasonal sauce-demand slowdowns. “It will help us keep our production steady,” DeMent says. “That has been a goal of mine.” Giovanni Food manufactures its products at its 67,000-square-foot headquarters at 6050 Court Street Road in DeWitt. The company also owns a 60,000-square-foot facility at 4645 Crossroads Park Drive in Clay, which it uses as a warehouse. DeMent says he eventually wants to consolidate Giovanni’s operations under one roof. However, he does not have any specific plan to do so at this time. “We’re just trying to get used to our current situation before making anything that’s too major of a jump,” he says. Giovanni Food could also add more employees by the end of the year, DeMent says. It currently has three production lines

at its Court Street Road facility but operates only two at a time. DeMent would like to add enough employees to operate all three lines at once. That would likely require a total of 70 full-time employees, he says. It would allow the manufacturer to meet its production requirements by operating for 40 hours per week. Giovanni Food is currently running production six days a week for 10 hours each day, DeMent says. Giovanni Food purchased its Court Street Road factory for $2.5 million in 2009 from Ventre Packing Co., Inc., according to the Onondaga County Office of Real Property Tax Services website. The company used a mix of financing that included a loan from Alliance Bank, a U.S. Small Business Administration loan, and a note from the seller. It had previously based production from its Crossroads Park Drive facility.

Greenview Kitchen

As Giovanni Food is launching its Greenview Kitchen premium pasta sauce, it is simultaneously kicking off a partnership with a program known as Green-e

Marketplace. Green-e Marketplace, which is run by the renewable-energy-focused not-for-profit Center for Resource Solutions, verifies a company’s renewable-energy claims. Under the program, Giovanni will purchase renewable-energy certificates to match 1,440 MWh of its electricity usage. It will buy the certificates through Constellation Energy Group, Inc. (NYSE: CEG). “We’re trying to do everything we possibly can to be a green manufacturing facility,” says Tammy Panipinto, director of business development at Giovanni. The manufacturer will label its Greenview Kitchen line with a Green-e logo so that customers will be able to see its participation in the program. “We believe in it, and hopefully we find consumers who identify with it,” DeMent says. Giovanni started meetings to try to get Greenview Kitchen onto store shelves at the beginning of February. The sauce is currently available on the company’s website (www.giovannifoods.com). q Contact Seltzer at rseltzer@cnybj.com


8

• The Central New York Business Journal

MANUFACTURING

February 17, 2012

Local ceramic-tile maker, Shenfeld Studio, settles into new home BY RUQING PAN CONTRIBUTING WRITER

DeWITT –– Shenfeld Studio, a local ceramic tile designer and manufacturer, is settling into its new, larger location at 6361 Thompson Road in DeWitt. The business moved there Jan. 1 from 1005 W. Fayette St. Robert Shenfeld, the sole owner of Shenfeld Studio –– which produces ceramic tiles, historic terra cotta, and custom mosaics –– signed an 8-year lease with landlord RAV Properties. Shenfeld, who started his Syracuse–based ceramic studio 15 years ago, says he is excited about his firm’s new location because of its added design space and interior loading dock. The firm’s new address features a 12,000-square-foot studio and gives the company access to 200,000 square feet of shared loading-dock space that’s heated and enclosed. “We have trucks that come in, in the middle of a snowstorm, to pull in to the loading dock, and the door closes behind them,” he says. “It’s a heated space that we can load or unload our products, or load some of our shipments into one of our vehicles in the loading dock.” Shenfeld Studio’s previous location was only 6,000 square feet and did not have a ground loading dock. Shenfeld says his company has been making tiles for furniture retailer Stickley Audi & Co., for the past 14 years. In addition, it has also been reproducing decorative terra-cotta tiles for the New York City subway system. Shenfeld Studio is working on developing a line of high-end tiles for kitchen back-

Robert Shenfeld, owner of Shenfeld Studio, pulls out tiles that have been fired for Stickley in one of the studio’s kilns.

ERIN ZEHR/THE CENTRAL NEW YORK BUSINESS JOURNAL

splashes and bathrooms, Shenfeld says. The company also works with architects, conservators, and historical preservationists on projects all over the country. He says the firm is currently working on 11 projects, and the number of major projects can go up to 30 or 40 per year. Shenfeld Studio produces annual revenue of about $500,000, according to Shenfeld. He says the annual revenue has been flat, but the firm has generated growth with its subway and state projects. One of the construction projects for which Shenfeld Studio is providing tiles is

the Fulton Street Transit Center, which will connect six existing subway stations in lower Manhattan. “They are doing a new transit hubway there, and the terra cotta that we are producing matches the original ... pottery.” He says the studio has also been doing historic restoration of the 100-year-old terra cotta at the subway station at Columbus Circle, in midtown Manhattan. The studio has seven kilns used for the firing of clay to make tiles, with firing schedules controlled by different computer programs, says Shenfeld. Staff also uses a hand press

and a machine press to help make tiles. “We have a 120-ton press for pressing the clay together with the machine,” he says, “and we have extruders to make the clay or push the clay out into a pattern or a design out of a die.” Although the 10-employee Shenfeld Studio works primarily on projects that are not in Central New York, Shenfeld says he has no desire to move his company out of the area because he finds the work force in Central New York to be diverse and skilled. He says a couple of his employees are from Nepal. “I think that we are a unique, one-of-a-kind company that is surviving the climate that’s difficult, where people are cutting back on things that are one-of-a-kind,” he says. “We are able to be diverse enough that we can kind of roll with the punches, and I think that’s why we are still here.” Shenfeld says the studio is trying to finish up three to four projects within the next month, and is expecting a whole new round of projects to emerge in the spring. “We are working on bidding on a project in Miami,” he says. “They are building a new Museum of Science in Biscayne Bay, and we are currently in the design phase of a 31,000-square-foot mosaic on one part of the building. And one portion of it is going to be in the aquarium.” Shenfeld says the studio is considering buying new machines to develop a tile that will be frost-proof and manufactured in the United States. He believes it will differentiate it from other U.S. competitors.  Contact The Business Journal at news@cnybj.com


MANUFACTURING

February 17, 2012

The Central New York Business Journal • 9

Ephesus still plans expansion BY KEVIN TAMPONE JOURNAL STAFF

SYRACUSE — Syracuse–based Ephesus Technologies, LLC is moving forward with its expansion plans. The company’s efforts were among the projects submitted to the state as part of Central New York’s regional economic development plan last year. But Ephesus was not among those chosen for funding as part of the process, which involved a competition among 10 regions around the state for a limited pool of aid. The firm did win a $150,000 grant from Empire State Development. And, in recent weeks, the company found out it will receive $200,000 from the New York State Energy Research and Development Authority (NYSERDA) and $50,000 through the Commercialization Assistance Program at the Syracuse Center of Excellence. The funding will allow Ephesus to push ahead with its growth

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space in the Radisson section of the town of Lysander. The facility will also house manufacturing space, Ephesus Chairwoman and CEO Amy Casper says. Joe and Amy Casper co-own the company. The company’s current lighting products are suited for applications such as warehouses,

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parking garages, and manufacturing floors, among other things. One of its lights has been certified through the DesignLights Consortium, a group of energyefficiency organizations and utilities aiming to raise awareness of efficient lighting. The certification will provide a boost for Ephesus since it will

allow customers using its lights to qualify for rebates and other incentives, Joe Casper says. The firm is also on the verge of introducing a new product for use in street lighting applications, Joe Casper adds. Ultimately, the company’s largest potential market is on the LED chip front, he says. That’s because the components could be used in Ephesus’ own lights, but also sold to other lighting companies. The overall market for LED chips potentially totals in the billions of dollars, according to Ephesus. The company says its chip is expected to lower the cost of its own fixtures by 30 percent. In addition to the new chip, Ephesus is working with Onondaga Community College and Clarkson University on creating an intelligent lighting system. The NYSERDA funding will go toward that work. The system will eventually be able to monitor the status and condition of the lights and handle tasks like dimming automatically, Joe Casper says. Along with the state funding, the company is exploring options for outside investment, Amy Casper says. The firm is looking at partnering with venture-capital firms and angel investors, she says.  Contact Tampone at ktampone@cnybj.com


10

MANUFACTURING

• The Central New York Business Journal

February 17, 2012

New Datacom Systems leader plans emphasis on marketing By Rick Seltzer Journal Staff

DeWITT — You might be hearing more about Datacom Systems Inc. now that Kevin Formby is the company’s president and CEO. At the very least, potential clients will probably be hearing more about the DeWitt manufacturer. “My background is in sales and marketing, so I’ve been brought on board to put more resources and more emphasis on sales and marketing,” Formby says. “In this field it’s good to be close to Formby your clients.” Datacom Systems manufactures devices for data networks, such as network test-access points (TAP). It also has a software-development group and creates software to manage those devices. A TAP allows an administrator to monitor a network to make sure it is properly transmitting data, Formby says. “You imagine the FBI tapping a line — well, it’s the kind of modern equipment that’s used for tapping the lines,” he says. “And then people put very specific equipment on the end of it to monitor the quality of the lines. You can actually see where packets [of data] are dropped and can’t get through.” The company’s products are in demand in the financial-services industry, accord-

ing to Formby. He declined to name any of Datacom Systems’ clients, but said its products are used by credit-card companies, stock exchanges, and banks. The company is headquartered in a 16,800-square-foot facility at 9 Adler Drive in DeWitt. Datacom purchased the structure in 2002 for $920,000, according to records from the Onondaga County Office of Real Property Tax Services. The manufacturer assembles and tests devices in that building, although it subcontracts production of circuit boards. Datacom Systems also has a four-person software-development group in Utica. The company employs 26 people in DeWitt for a total of 30 full-time workers. That total is about to grow, as the company is planning to open a sales office in London within a month. That office will employ about four people, Formby says. “We do have a market in Europe and we use resellers, but it’s very difficult to support large opportunities remotely,” he says. “We need some local sales presence [in Europe].” Formby declined to share revenue totals for Datacom Systems. However, he said that the company is planning to grow with its industry in 2012. “The market we operate in is growing at around 40 percent a year, and we aim to grow at least the market rate,” he says.

Formby’s background

Formby started at Datacom Systems at the beginning of February. Before that, he was

“Striving to run a clean, safe facility where local commerce can prosper”

the vice president of business development at New Zealand–based Endace Ltd. (LSE: EDA.L), a data-capture and analysis hardware and software firm that operates U.S. offices in New York City, Atlanta, Chicago, New Jersey, and Washington, D.C. Formby was based in Atlanta. In fact, he says he plans to continue living there for a year until his youngest daughter graduates from high school. In the meantime, he will be traveling between Atlanta, Syracuse, and Datacom Systems’ clients. “I’m the kind of person who visits a lot of customers,” Formby says. “We have a lot of clients all over the United States. It’s not as if I’m in the office a lot.” He is a graduate of Birmingham University in the United Kingdom and has a first-class honors degree in electrical and communications engineering. Formby is also a national of both the United States and the United Kingdom. Coming to Datacom Systems was attractive because of the company’s technology, Formby says. He was familiar with the manufacturer through his previous work at Endace, he adds. Formby proposed joining Datacom Systems several months ago, he says. “It was me kind of approaching them,” he says. “I thought I could do a great job here.” Datacom Systems’ location in the Syracuse area gives it several advantages, according to Formby. It has access to universities, like Syracuse, and manufacturing costs are reasonable, he says. And the city’s location is a plus because

it is relatively close to New York City and Chicago, he says. Those cities are important sources of business because of their financial-services industries. Many of Datacom Systems’ competitors are farther away in California in Silicon Valley, Formby says. Those competitors include Milpitas, Calif.–based Gigamon and Santa Clara, Calif.–based Net Optics. Formby says he will try to increase Datacom Systems’ visibility in the press. But he is not a fan of trade shows as a way to build sales and improve marketing. “You’ll have salespeople giving out colored pens to people who walk by,” he says. “That’s not the way to build the market. What I’m interested in is what I would call leadership events.” Formby envisions Datacom Systems putting on smaller events in New York City where he and other company staff members talk about new technological developments and how they fit into the market. The idea is to get close to customers and understand their needs, he says. The former president and CEO of Datacom Systems, which was founded in 1992 in Syracuse, was Sam Lanzafame. He held those positions since 2005 and is remaining with the company as its chairman. The company’s majority owner is Wellesley, Mass.–based Gemini Investors, which acquired its stake in the manufacturer in 2008. Several company managers are also minority owners, Formby says. Contact Seltzer at rseltzer@cnybj.com

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The Central New York Business Journal • 11

MANUFACTURING

February 17, 2012

New Le Moyne certificate offers education on government contracting By Kevin Tampone Journal Staff

SYRACUSE — A new program at Le Moyne College aims to help some of the area’s defense-contract manufacturers fill a need and set students on a promising career path. Le Moyne launched a new certificate in government systems management last fall. Local defense contractors, including SRC, Inc. and Lockheed Martin, helped develop the content. The four-course program, targeted toward undergraduate students as well as working professionals, provides information on the legal and regulatory issues involved in doing business with the federal government. Students learn about the government procurement process, financial systems, and contracting basics. Undergraduates in accounting, information systems, marketing, finance, and business have already started the program. The first class was oversubscribed with 26 students, says Martha Grabowski, chairwoman of the business administration department at Le Moyne and director of the infor-

mation-systems program. Two more groups began the program in the spring semester, she adds. People trained in government systems work in areas like accounting, finance, contract administration, and more, says Phil Fazio, executive vice president, CFO, and treasurer at SRC, a nonprofit research and development company. Previously, the firm was often forced to send employees to the Washington, D.C. area for the type of training now offered at Le Moyne, he adds. “When you get these people, you want to keep them,” Fazio says. “These people are such a hot commodity.” Even professionals with long experience in the private sector need training when moving to a contractor like SRC. There are different accounting standards and a host of regulations that would be unfamiliar to people from other industries, Fazio says. “The people that come out of the commercial world never had that experience,” he says. SRC and its for-profit manufacturing subsidiary, SRCTec, together employ more than 1,100 people

at 15 locations in Colorado, Maine, Maryland, New York, Ohio, Texas, and Virginia. The firms are headquartered in Cicero and also have an office in Rome. Having a local option for training makes a difference for employers and workers, says Ron Ziomek, director of contracts at Lockheed’s Salina location. The company employs about 2,200 people in Salina and 2,900 at a site in Owego. “You’re taking someone out of their workplace for several days,” Ziomek says of sending employees out of the area for training. “That’s disruptive.” The program at Le Moyne could help establish a pipeline of future workers educated in federal contracting, executives say. Ziomek notes that professionals with experience in government systems are concentrated in areas around the nation’s Capitol or in states like Texas and California, where there are large pockets of contractors. “That’s where the experienced people are,” he says. “We find that we basically have to grow the talent locally.” Even the government itself often has numerous openings for procurement employees, Ziomek

photo courtesy of le moyne college

Dr. Martha Grabowski speaks to her class at Le Moyne College. A new program at Le Moyne aims to help some of the area’s defensecontract manufacturers fill a need and set students on a promising career path. says. The Le Moyne certificate can equip students for work with federal agencies as well as contractors, he adds. Even if they ultimately choose a career path that doesn’t involve

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The February Empire State

• The Central New York Business Journal Manufacturing Survey indicates

that manufacturing activity in New York State expanded for a third consecutive month. The general areas business conditions index Practice at Tully Rinckey include rose six points to 19.5, its highest matrimonial law, trusts and estates, criminal defense, real estate, and general level in more than a year. Thelitigation. Filling the Syracuse office with experienced new orders index, at 9.7, was lawyers in those areas will be the firm’s positive but down slightly, and the top priority, Tully says. shipments littlewon’t changed That doesn’tindex mean was the firm expand 22.8.areas The prices paidattorney index held intoatother if the right with a steady at 25.9, whilefocus the prices slightly different practice comes along, he received adds. index fell eight points to The firm aims to recruit mid-level lawyers 15.3, suggesting that selling prices from other firms and has sent nearly 3,800 rose at a slower pace. Employment letters to attorneys within an hour’s drive indexes were close to of Syracuse. Tullypositive says he and wants to attract last month’s levels, indicating that employment levels and the average workweek continued to rise at a

modest pace. Indexes for the sixmonth outlook, while somewhat lower than last month, remained at fairly high levels, signaling considerable optimism about the future. attorneys with experience, but not those at

results are not substantially different Februarysurvey. 17, 2012 from those in last February’s As in earlier surveys, the increases most widely expected were for non-computer-related equipment; in contrast, manufacturers remained and Buffalo, including launching in one of somewhat reluctant to invest in those two cities by the end of 2012. Overall, thethough firm’s goal employ more structures, less is sotothan than 100 attorneys in the next three to five in earlier surveys. The median years, Tully says. The firm currently projected level of capital spending employs 84 people total, including more than 2012 across all respondent firms 30for attorneys. was up Rinckey 29 percent from the median Tully started in Washington, actual level That reported 2011. D.C. in 2008. officefor now has 14 attor-

TULLY: One of Tully Rinckey’s attorneys will move to Syracuse to help launch the local office. Continued from page 1

For its fourth office, the firm explored markets including White Plains, Maryland, and the Springfield, Mass. area. The firm liked the potential for two offices working in the same state and so settled on starting its next location in New York. “What really made us like Syracuse was the commonality of law with our Albany office,” Tully says. Plus, starting up in Syracuse is far less expensive than in White Plains, near New York City, he adds.

a senior level. a series person of supplementary “A Inmid-level might be making $90,000 year, but generating $400,000 in surveya questions, manufacturers revenue for thatabout firm,”their Tully2012 says. “That’s the were asked perfect candidate forplans us.” and how capital spending One of Tully Rinckey’s experienced atthe plans with their torneys will compared move to Syracuse to help start spending 2011. Parallel theactual local office. Thefor firm is already in talks with two localhad attorneys about in joining, questions been asked earlierTully adds. surveys, including the February After survey. launching Syracuse, Tully 2011 Substantially moreRinckey expects to continue its expansion west. The respondents indicated that they firm plans to open offices in both Rochester

planned increases (46 percent) than reductions (25 percent) in overall capital spending in 2012. These

neys. It opened its third office, in Arlington, inExpansion 2010. q Continues

to Gain Momentum

Contact Tampone at The general business conditions ktampone@cnybj.com

index rose six points in February to 19.5, its highest level since June 2010. The index was last negative in October, then rose to a The future deliveryzero time in index also remained level of around November; positive, but lost 4.2 points to settle at 2.4. subsequently, theprices readings havewill conPrices paid and received become increasingly positive, tinue to rise, according to manufacturers’ suggesting that expansion expectations. The the future prices paid index spiked 8.5 points to 62.4,for andNew the future prices in business activity received index swelled 3.4 points to 34.1. York manufacturers has gained Manufacturers showed a willingness to momentum in recent months. The make capital expenditures and spend on technew orders indexfound. fell four nology, the survey Thepoints future to capital 9.7, indicating ordersup climbed expenditures indexthat bounded 6.5 points to 31.8, technology spending index at a while slowerthe pace. The shipments remained steady, dipping 1 point to 18.8. index held steady at 22.8. The “Investments are a big factor,” Wolken says. unfilled orders index inched down “When the climate starts to change in your twoand points -7.1, theinvestments delivery befavor youto have to and make time index rose four points 1.2. cause orders are going up, that’sto positive.” Manufacturing After climbing employment above zero could last also in-

INDEX: Manufacturing employment grew in New York State in February, according to the survey. Continued from page 1

up since October 2011 and is now at its highest point since June 2010, when it registered 20.3. In the survey, 31.6 percent of manufacturers said business conditions improved from January, while 12.1 percent said conditions worsened. Another 56.3 percent of manufacturers in the state said business conditions remained the same as in January. “I think it’s very good news,” says Randall Wolken, president of the Manufacturers Association of Central New York (MACNY). “This continues to be a positive trend.” The Empire State Survey’s new-orders index slipped 4 points to 9.7. However, it remained in positive territory, indicating new orders increased — but the 4-point decrease shows new orders did not grow as quickly as they did last month. Shipments were more frequent as well. February’s shipments index inched up 1.1 points to 22.8. The inventories index dropped 11.3 points to -4.7. The negative number reflects slightly lower inventory levels among manufacturers. Unfilled orders fell, as the unfilled-orders index slid 1.6 points to -7.1. Meanwhile, delivery times rose slightly, with the index measuring those times gaining 4.5 points to turn positive at 1.2. Both the prices-paid index and prices-received index decreased but stayed positive, indicating manufacturers paid higher prices in February while also receiving higher prices. The prices-paid index slipped 0.5 points to 25.9, while the prices-received index fell 7.8

General Business Conditions Seasonally adjusted Diffusion index 40 30 20 10 0 -10 -20 -30 -40

2003

04

05

06

07

points to 15.3. Manufacturing employment grew in New York State in February, according to the survey. The number-of-employees index slipped by 0.3 points to 11.8, and the average-employee workweek index added 0.5 points to 7.1. February’s survey results are consistent with feedback Wolken is receiving from MACNY members, he says. “We’re hearing positive news,” he says. “Obviously it depends on the company. It does depend on the sector. But from most businessto-business sectors, we’re hearing growth.”

Future expectations

New York manufacturers expressed high hopes for the coming months, according to the survey’s forward-looking indicators, which

08

09

10

11

12

measure expectations for a period six months in the future. All future indicators hovered in positive territory. The future general business conditions index shed 4.5 points to 50.4. But a majority of survey respondents — 57.6 percent — still anticipated better business conditions in six months. Just 7.2 percent expected worse conditions, and 35.2 percent said conditions will likely be the same. The future new-orders index skidded down 9.1 points to 44.7, while the future-shipments index declined 3.3 points to 49.4. And the future inventories index held steady, dropping 0.4 points to 10.6. Manufacturers predicted slightly more unfilled orders in six months, with the future unfilled orders index losing 0.8 points to 4.8.

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crease in the next six months, according to the survey. The number of employees index climbed 0.8 points to 29.4. TheContinued average employee workweek index crept up 1.2 points to 18.8. Plans to add employees in the future can indicate manufacturers who are finding success today, according to Wolken. “I think employment is a lagging indicator in the future employment index,” he says. “As I look at the manufacturing sector, the first thing they look to do is make improvements through capital. When they can no longer do that, they’re hiring.” The New York Fed polls a set pool of about 200 New York manufacturing executives for the monthly survey. About 100 executives typically respond, and the Fed seasonally adjusts data. q

Contact Seltzer at rseltzer@cnybj.com


The Central New York Business Journal • 13

February 17, 2012

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14

• The Central New York Business Journal

February 17, 2012

TOP RANKS: PROPERTY & CASUALTY INSURANCE AGENCIES Ranked by No. of P&C Producers Rank

1. 2. 3. 4. 5. . 7. 8. 9. . . 12. 13. . . 16. 17. . . .

Name Address Phone Website Vanguard Risk Managers Bailey & Haskell 169 Main St. Oneida, NY 13421 (315) 363-2100 www.bhlinsurance.com Brown & Brown Empire State 500 Plum St., Suite 200 Syracuse, NY 13204 (315) 474-3374 www.bbempirestate.com Mang Insurance Agency 66 South Broad St. Norwich, NY 13815 (607) 729-6243 www.manginsurance.com Haylor, Freyer & Coon, Inc. 231 Salina Meadows Parkway Syracuse, NY 13221 (315) 451-1500 www.haylor.com Eastern Shore Assoc. Insurance 101 Cayuga St. Fulton, NY 13069 (315) 598-6000 www.esainsurance.com Grimsley Agency of NY LLC 5320 W. Taft Road North Syracuse, NY 13212 (315) 452-0123 www.grimsleyagencyofny.com Day, Scarafile & Read, Inc. 125 Otsego St. Ilion, NY 13357 (315) 894-3131 www.dayscarafileread.com The Partners 825 Vestal Parkway West Vestal, NY 13850 (607) 754-1411 www.thepartners.com Gates-Cole Associates, Inc. 92 Genesee St. New Hartford, NY 13413 (315) 732-5183 www.gatescole.com ENV Property & Casualty Agency, LLC 7787 Oswego Road Liverpool, NY 13090 (315) 622-2931 www.insurewithenv.com HBE Group, Inc. 410 Folts St. Herkimer, NY 13350 (315) 866-3140 www.hbegroup.com Tompkins Insurance Agencies, Inc. 1051 Craft Road Ithaca, NY 14850 (607) 257-4440 www.tompkinsins.com Marsh, Inc. 507 Plum St., Suite 110 Syracuse, NY 13204 (315) 425-4000 www.marsh.com Perry & Carroll, Inc. 100 W. Church St. Elmira, NY 14901 (607) 734-4291 www.perrycarroll.com InFocus Advisors, Inc. 8035 Oswego Road Liverpool, NY 13090 (315) 622-3333 www.infocusadvisors.com Moore Insurance Group Agency Inc. 143 W. Dominick St. Rome, NY 13440 (315) 371-4288 www.mooreinsuranceinc.com First Niagara Risk Management 126 N. Salina St., Suite 400 Syracuse, NY 13202 (315) 461-1282 www.fnfg.com/Insurance Gilroy, Kernan & Gilroy 210 Clinton Road New Hartford, NY 13413 (315) 768-8888 www.gkginsurance.com Dominick Falcone Agency, Inc. & Falcone Associates. Inc 901 Lodi St. Syracuse, NY 13203 (315) 422-6128 www.falconeinsurance.com CH Insurance 100 Madison St., Suite 100 Syracuse, NY 13202 (315) 234-7500 www.chinsurance.cc

No. of P&C Producers — Total Employees 58 — 141

2011 Premium Volume ($ millions) $200

No. of CNY Offices 9

% of Policies Sold Business 80

% of Policies Sold Personal 20

54 — 85

$240

2

90

10

35 — 120

$100

18

56

44

32 — 200

$255

10

75

25

18 — 62

NA

9

55

45

18 — 18

NA

5

50

50

14 — 24

NA

6

50

50

11 — 40

NA

3

55

45

most major companies and regional insurers

10 — 46

NA

10

40

60

10 — 25

$1.5

3

80

10 — 10

NA

2

9 — 25

$30

8 — 45

Major Insurance Companies Represented Travelers, Hartford, Cincinnati, Hanover, Selective, Utica Mutual, Chubb, Peerless, NY Central

Areas of Specialization health care, social services, construction, manufacturing, municipalities, distribution/ wholesale, transportation, professional liability, risk management, environmental

all major property, casualty, life, and health insurance carriers

Key Executives John Haskell, CEO, BHL Pierre Morrisseau, President, BHL Robert Galusha, Executive VP & Chief Sales Officer, BHL J. Michael Reagan, President, JP Reagan Agency Edward Reagan, VP Reagan Agency

Year Estab. 1906

commercial & personal insurance, emp. ben., risk-management, green-building techniques, surety bonding, wealth-management consulting Utica, Hartford, Travelers, Hanover, workplace market, manufacturing, Acadia, NYCM, Preferred Mutual, wholesale and distributors, public Selective, Progressive entities, construction

Linda J. Taylor, President Robert S. Messina, EVP Eileen M. Clinton, VP Risk Mgmt. Cheryl Roe, SVP Commercial Lines Roy S. Moore, SVP Richard Mirabito, President & CEO William Mirabito, EVP Benefits Dennis Mirabito, EVP Personal Lines Thomas Farneti, VP Comm. Lines

most major insurance companies construction, transportation, public entities, employee benefits, manufactured housing, international, manufacturing, personal Travelers, Peerless, National schools, public and private; Grange, Harleysville, Hartford, municipalities, contractors, Safeco, Acadia, Utica, GMAC, nonprofits, employee benefits, life NYMIR, NYSIR and financial services, personal insurance lines most major companies and auto-repair shops, car dealers, regional insurers apartments, contractors, business owners, retail

Victor A. DiSerio, Chairman James D. Freyer, CEO Mark McAnaney, CFO Bruce Wichmann, President

1928

Robert K. Wallace, CEO & Chairman Martha Murray, President Regina Lunkenheimer, COO/SVP Mary Jones, VP of Personal Lines Melissa Calvarese, VP of Finance Donald E. Grimsley, President & CEO

1986

Adirondack Ins. Exchange, Allstate, all lines of commercial insurance, Dryden Mutual, Encompass, Erie & including safety group programs; Niagara, First Rehab Life, Fulmont all personal lines with emphasis on Mutual, Hartford package programs

1905

1894

1989

David Read, President Nicholas V. Scarafile, VP William Read, Treasurer Timothy M. Day, Secretary

1908

commercial, risk management, school districts, municipalities, employee benefits, life, financial/ investment services, personal

William J. Oliver, President & CEO Don D. Patterson, COO Trish Ryall, Secretary/Agency Support Manager

1937

New York Central Mutual, Utica National, Preferred Mutual, Travelers, National Grange, Peerless, Safeco, Progressive

commercial and business lines

William T. Cole, President Thomas J. Cole, VP Cheryl Hammond, VP

1896

20

Peerless, Travelers, Hartford, Philadelphia & several top-rated carriers

capable of handling all sizes of corporate accounts in any industry

Terence W. Engels, Senior Partner Edward N. Vaughn, Senior Partner

2010

25

75

personal lines, commercial lines, and life insurance

J. David Christman, President Lenore A. Gabriel, Vice President Gary C. Luther, Vice President Sharon M. Baisley, Secretary/Treasurer

1994

5

50

50

Allstate, Progressive, Travelers, Foremost, New York Central Mutual, JC Taylor, Kemper, Utica First, Farmers, Madison Mutual, Leatherstocking all major companies

municipalities, contractors, manufacturing, social services, employee benefits

David S. Boyce, President & CEO

NA

$250

1

99

1

Robert Connor, Managing Director/Office Head Michael E. Swan, Managing Director/Risk Management Leader

1895

8 — 32

$26.1

1

72

28

risk-mgmt. services, insurance brokerage, employee-benefit svcs., transportation, public entities, higher education, health care & life science, construction, real estate Cincinnati, Travelers, Selective, contractors, municipalities, school Peerless, Kemper, Hartford, CNA, districts, manufacturers, Excellus BC/BS transportation

James H. Rogers, President John M. Holleran, Vice President Daniel J. Manuel, Vice President Robert S. Moore, Secretary/Treasurer

1860

8 — 6

$6

1

60

40

Richard J. Carlesco, CEO David Lavelle, President Matthew Warner, Secretary/Treasurer

2007

7 — 9

NA

2

40

60

$37.6

2

51

49

Ryan W. Moore, President Ty Moore, VP, Personal Lines Charlene Taylor, Branch Manager - Rome Office Hope Headley, Branch Manager - Ilion Tamara Cantarano, Account Executive Joseph Teresi, CEO Gretchen Deeley, COO Ray Suatoni, Regional President

2010

6 — 35

Travelers, Erie, Hartford, personal and commercial lines Encompass, Peerless, Hanover, National Grange, Safeco, Preferred, Selective, Harleysville, Dryden, Midstate Erie Insurance, New York Central auto/homeowners, business Mutual, Travelers, The Hartford, owners, workers' comp., pro. Mercury, Progressive, Foremost, liability, med. practices, mfg., auto Countryway, GMAC, Midrox repair shops, technology, contractors, retail, distributors most major insurance companies moving & storage, construction, nonprofits, manufacturing, health care, wholesalers, risk management, benefit services

6 — 35

NA

1

90

10

Utica National, Chubb, The Hartford, Travelers, National Grange, Cincinnati, PMA, Zurich, Philadelphia, Excellus, MVP

commercial lines, employee benefits, financial services, personal lines, risk management

Lawrence T. Gilroy, President Bill Walker, Executive Vice President Donald Polczynski, CFO

1904

6 — 23

NA

1

65

35

Preferred, Peerless, Hartford, Travelers, New York Central, Hanover, Dryden, Selective, Utica National, Kemper, National Grange, Harleysville

general commercial business, marinas, hospitality risks, real estate

1920

6 — 22

NA

3

85

15

all major regional insurance

manufacturing, service organizations, nonprofits, distributors, health care, retail, technology, construction, personal lines, benefits division

David J. Falcone, President Dominick Falcone, IV, EVP Michael J. Lavalle, EVP David T. MacLachlan, EVP Andy Marshall, President Renee Guariglia, EVP Chris Marshall, EVP Joseph Convertino, Sr., Pres. & CEO Joseph Convertino, Jr., EVP Michele Beard, Corporate Mktg. Mgr. Paul Evans, Claims Manager Doug Ross, Marketing

all major domestic & global insurers

Information was provided by representatives of listed organizations and their websites. While the Business Journal strives to print accurate information, it is not practical to independently verify all data submitted. Other groups may have been eligible but did not respond to our requests for information. Central New York includes Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Seneca, St. Lawrence, Tioga, and Tompkins counties.

1910

1999

RESEARCH BY NICOLE COLLINS 02/12 ncollins@cnybj.com


The Central New York Business Journal • 15

February 17, 2012

TOP RANKS: PROPERTY & CASUALTY INSURANCE AGENCIES Ranked by No. of P&C Producers Rank

21.

No. of P&C Producers — Total Employees 5 — 225

Name Address Phone Website EBS-RMSCO, Inc. 115 Continuum Drive Liverpool, NY 13088 (315) 448-9000 www.ebsrmsco.com

2011 Premium Volume ($ millions) NA

No. of CNY Offices 1

% of Policies Sold Business 90

% of Policies Sold Personal 10

Major Insurance Companies Represented all

Areas of Specialization property, general liability, commercial auto, umbrella, inland marine, workers' comp, professional liability, cyber liability, non-profits

Key Executives Gregory Cohen, President Steve McCarthy, VP Marketing & Sales Kim Buck, VP Information Technology Scott Ehrlinger, VP Finance

Year Estab. 2008

Steve Cardell Agency, Inc. 3306 E. Main St. Endwell, NY 13760 (607) 754-5466 www.stevecardellinsurance.com

5 — 7

$5

1

40

60

Travelers, Farmers, AIG, Progressive, Hanover, Met, Hartford, Main Street America, Safeco

commercial business policies, home-based businesses, motorcycle, auto, home

Steve I. Cardell, President Rick Regal, Vice President Suzanne Cardell, VP SM

1976

23.

The Burns Agency 29 West Park Row Clinton, NY 13323 (315) 853-5052 www.burnsagency.com

4 — 5

$3.2

1

30

70

most major companies and regional insurers

property & casualty

David J. Burns, President

1919

24.

Scalzo, Zogby, & Wittig, Inc. Campion Commons New Hartford, NY 13413 (315) 792-0000 www.szwinsurance.com

3 — 15

NA

1

60

40

Gary D. Scalzo, President Stephen R. Zogby, Executive VP

1992

.

Spencer Agency, Inc. 140 N. Main St. Spencer, NY 14883 (607) 589-4456 www.spencer-agency.com

3 — 6

$2.6

2

25

75

most major companies and regional insurers

all personal lines property & casualty, small/medium commercial lines products, life insurance, group health-life & disability

David A. Belair, President

1910

.

Sinclair & Andrews, Inc. 306 Hawley Ave. Syracuse, NY 13203 (315) 472-1010 sinclairandandrews.com

3 — 4

$4

1

40

60

Travelers, Kemper, National Grange, Hartford, Midstate, Progressive, Dryden, Safeco, GMAC, Foremost, Peerless

personal & business insurance

William A. Dee, President

1932

Miller Agency of New York, Inc. 7000 E. Genesee St. Fayetteville, NY 13066 (315) 446-5444

2 — 14

NA

1

80

20

Ace USA, Chubb, Farmers, Hartford, Madison Mutual, New York Casualty, Philadelphia Ins., Security Mutual, Travelers

personal and business, property & casualty insurance, life, health, disability, and long-term care insurance

Robert I. Miller, President Jon M. Maloff, Vice President, Secretary, Treasurer

1981

The Eagle Insurance Agency 202 Walton St. Syracuse, NY 13202 (315) 479-8237 www.eagleins.org

2 — 6

$16.4

1

100

0

Chubb, CNA, Chartis, PMA, hospitals, physician/medical Timothy D George, President-Member Travelers, and access to virtually groups, utility/alternative energy, Elvira Phelps, SVP-Marketing Manager all standard, excess surplus lines risk management, workers' comp., Thomas Lynch, VP of Claims and specialty carriers directors & officers liability, Susan Robinson, VP of Risk Consulting & Sales environmental liability, builders risk

.

27. .

Utica National, Peerless, Hartford, nonprofits, social-service agencies, Adirondack Insurance Exchange, manufacturing, wholesale, retail, CNA, Utica First, Erie & Niagara, office, contractors, financialEncompass, Philadelphia services industry, personal insurance

Information was provided by representatives of listed organizations and their websites. While the Business Journal strives to print accurate information, it is not practical to independently verify all data submitted. Other groups may have been eligible but did not respond to our requests for information.

2001

RESEARCH BY NICOLE COLLINS 02/12 ncollins@cnybj.com

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

ARCHIBALD: Health-care rationing has existed throughout our nation’s history in a subliminal way Continued from page 6

Q: Nonprofits with annual budgets of $10 million or more represent what percentage of total charitable organizational spending? A: In 2009, it was estimated that organizations with $10 million or more in annual expenses represented 85 percent of total charitable-organization spending. Q: What percentage, on average, of revenues received by charitable organizations is derived from government sources and private-pay fees for goods and services? A: In 2009, it was estimated that 76

percent of charitable-organization revenue came from government and private-service fees. This election year should, but most likely will not, include extensive discussion and debate regarding rationing of goods and services to the American population. Health-care rationing has existed throughout our nation’s history in a subliminal way. Politicians from all parties recognize that it is “political suicide” to use the “R” word. However, the age and income demographics of our country make it impossible for the government to provide all health and human services expected or demanded

by those of us in the mirror. One can only hope that the necessary debate and dialogue will occur before the issue of rationing must be addressed in a crisis mode. For example, I challenge those families that still eat meals at the dinner table to debate and discuss the following question: Should every American of the baby boom generation receive an artificial hip, knee, and/or shoulder replacement, regardless of his/her age? On a final note, don’t be at all surprised to hear serious discussion during the election campaign regarding taxation of income generated by charitable organiza-

tions. If the question above is too sensitive for discussion at your dinner table, I would hope that a sports question will serve as an adequate replacement. Should income from college football, basketball, and other profitable and lucrative college athletic programs be subject to some form of taxation and why? Enjoy your dinner conversation and pay close attention to the election debates, political platforms, and the inevitable rhetoric. Gerald J. Archibald, CPA is a partner with The Bonadio Group. Contact him at garchibald@bonadio.com

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The Central New York Business Journal • 17

February 17, 2012

OPINION

BUSINESS JOURNAL C E N T R A L

N E W

Y O R K

Unemployment: What’s behind the latest BLS numbers

Volume 26, No. 7 - February 17, 2012 NEWS Editor-in-Chief .......................Adam Rombel arombel@cnybj.com Assistant Editor .............Maria J. Carbonaro mcarbonaro@cnybj.com Staff Writers .......................... Kevin Tampone (Online Editor) ktampone@cnybj.com ..............................................................Rick Seltzer rseltzer@cnybj.com ............................................................Traci DeLore tgregory@cnybj.com Contributing Writer ...................Ruqing Pan Columnist .........................Gerald J. Archibald Gail Kinsella Tom Morgan Production Manager ......................Erin Zehr ewebb@cnybj.com Research Manager................. Nicole Collins ncollins@cnybj.com SALES Sr. Account Managers ...................................... Bernard B. Bregman bbregman@cnybj.com Mary LaMacchia mlamacchia@cnybj.com Marketing ......................BBB Marketing Inc. CIRCULATION Circulation Management...(315) 579-3927 ADMINISTRATIVE Publisher..........................Norman Poltenson npoltenson@cnybj.com

O

n Feb. 3, the U.S. Bureau of Labor Statistics (BLS) released its monthly employment report, which was greeted as good news. The numbers showed a net increase of 243,000 jobs, 108,000 above the consensus forecast. As a consequence, the unemployment rate dropped from 8.5 percent to 8.3 percent. The BLS also revised its November and December figures upward to reflect an additional 60,000 jobs not previously recorded. The good news also included a slight FROM THE increase in the averPUBLISHER age hours worked weekly and a modest wage increase. Private-sector growth posted 257,000 jobs broadly distributed, which included 50,000 new manufacturing jobs, 21,000 construction jobs, and 176,000 service-sector positions in areas like accounting, bookkeeping, architecture, engineering, hospitality, and health care. Jay Carney, the White House press secretary, wasted no time claiming that the employment growth was evidence that President Barack Obama’s economic policies were working. The Christian Science Monitor said the White House was doing

NORMAN POLTENSON

Chief Operating Officer .....Marny Nesher mnesher@cnybj.com Business Manager ....................Kurt Bramer kbramer@cnybj.com

THE CENTRAL NEW YORK BUSINESS JOURNAL (ISSN #1050-3005) is published every week by CNY Business Review, Inc. All contents copyrighted 2011. All rights reserved. No part of this publication may be reproduced without the written consent of the publisher. Cover Price $2 Subscription Rate $88 per year Call (800) 836-3539

HOW TO REACH US MAIL: Send letters to: Editor, The Central New York Business Journal 269 W. Jefferson St. Syracuse, N.Y. 13202-1230 E-MAIL: letters@cnybj.com PHONE: (315) 472-3104

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lower the results depending on the changes to each. The BLS formula for unemployment is simple: divide the unemployed jobseekers by the total labor force (“civilian, non-institutional population 16 years and older”). In January 2012, the numerator — unemployed job-seekers — decreased precipitously while the denominator held steady. Voila, the percentage of unemployed dropped. But did the January unemployment numbers reflect good news or did they simply reflect discouraged job-seekers who gave up in the last four weeks? The non-partisan Congressional Budget Office calculates that if the labor-participation rate had remained constant in January, the real unemployment rate would be 9.55 percent. TrimTabs.com CEO Charles Biderman says his firm’s analysis of actual IRS tax receipts shows job growth in January of only 44,000 net jobs. The BLS numbers are encouraging, but I would restrain my jubilation that the economy is ramping up quickly or that it has a solid foundation. Employers in general are still cautious about investing in new hires when faced with a host of political and economic uncertainties. Save the cartwheels until the employment picture is supported by the facts.  Norman Poltenson is publisher of The Central New York Business Journal. Contact him at npoltenson@cnybj.com

Think Positive: Energy Rules

o you want to think positive today? Do you want to feel good about this country’s economic prospects? All right. Let’s go for it. Are you ready? Let’s think oil and gas. Little Wow? Hey — I suggest you think Big Wow. And here is why. Whether you like it or not, energy rules. When I was a kid, coal was king. Coal being a form of energy. This country was endowed with zillions of tons of coal. That coal allowed us to create gas (from coal). That coal fueled the steel mills of Carnegie. And, those steel mills turned this country into an MORGAN industrial power like AT LARGE the world had never known. Those steel mills and rubber plants turned this nation into an auto giant. They helped us to build a ship a day (or more) during WWII. The coal fueled the power plants that gave us the electricity to create an industrial behemoth. Next, we discovered this land was also endowed with oil. Then natural gas. They

TOM MORGAN

“cartwheels” over the positive numbers. Buried in the report, however, were some trends that received little attention. First was the labor-force participation rate, which hit a 28-year low of 63.7 percent. This percentage, which reflects the number of American adults who are active in the labor force (employed or looking for work), has slid 2.3 percentage points just since 2008. This number held steady despite a rise in the employment-population ratio. Second, 1.2 million people disappeared from the labor force just in January, a number four times higher than in December 2011. Third, the BLS revised the baseline numbers in January 2012, based on final 2010 census figures which showed a 1.5 million person increase in the nation’s population than was previously assumed. Why didn’t the participation rate increase? Fourth, buried in the report was the long-term unemployment number (27 weeks or more), which remained constant and accounted for 42.9 percent of the unemployed or 5.5 million Americans. Fifth, the number of part-time employees who sought full-time employment held steady at 8.2 million. Sixth, the number of persons marginally attached to the labor force (looking for work but not within the previous four weeks) was unchanged at 2.8 million. Reviewing the data made me think of my grammar-school teacher who taught us about numerators and denominators. She stressed how easy it was to raise or

too helped us continue to grow industrially. Alas, we entered a period in which we lost a lot of our confidence. We had to import more and more of our oil. And, we grew afraid to build more nuclear-power sources. We had built a society that required oil. Our own oil had run low. Low enough that we had to kiss the backsides of other countries so that we could fulfill our needs. And, some of those countries abused us. You invite abuse when you absolutely need something from another country. The Arabs gave us the back of their hand, in many ways. They insulted us. Are you are old enough to remember the 1970s, when they forced us into long lines for a tank of gas for our cars? Then you know what I mean. Well, what goes around comes around. We have lately learned how to extract incredible amounts of oil and gas from our own land. The amount of gas is so large that its price has fallen by 75 percent. It is not often that a basic commodity falls that much in price. Oil is not far behind. Think how much additional oil the world must produce to feed the growth of China and India alone. This growth in demand should push the price of oil into the heavens. But it has not. And it has not, because so much more oil is

flowing. Thanks to these technologies. You have read about the concept of “peak oil.” And you have read that skeptics scoff at “peak oil.” Well, it is looking as if the skeptics are right. For at least the next 40 or 50 years — and who knows what technology will come along by then. And don’t forget coal. We may yet develop technology that will make coal more envirofriendly. Energy rules today. As it has for a century. And cheap energy is here. In this country. And in countries that are a helluva lot more friendly to us than the Arabs and Chavez-Venezuelans. Energy is the biggest and most powerful piece on the chessboard. It influences everything. This country’s energy players are discovering more and more oil and natural gas. And, they are bringing it to market at lower prices. They will allow this country to control more of its destiny. They will allow us to kick backsides more than we kiss them. They will brighten the future of America for many years to come. From Tom...as in Morgan.  Tom Morgan writes about financial and other subjects from his home near Oneonta, in addition to his radio shows and new TV show. For more information about him, visit his website at www.tomasinmorgan.com


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• The Central New York Business Journal

February 21 n IAAP Meeting starting at 6 p.m. at C&S Companies, 499 Col. Eileen Collins Blvd., Syracuse. Enid G. Reiley from Emerald Training Consultants will present “Getting Results without Authority.” The program is free for members, $5 for students, and $10 for nonmembers. RSVP by Feb. 16, via www.jotform.com/ form/12401111357. For those attending both the program and dinner, the cost is $12 for members, $17 for students, and $22 for nonmembers. For more information, visit www.iaap-syracuse.org or contact Suzanne at sbenderski@cpsprofessionals.com n Social Media Community Discussion Group from 9 to 10 a.m. at SUNY Center for Professional Development, 6333 Route 298, Suite 102, DeWitt. CNY ASTD hosts an informal group for discussions on social media in a research, sharing experiences, and learning environment. This meeting’s topic is online surveys. For details, call (315) 546-2783 or email: info@cnyastd.org

February 22 n Toastmasters Open House at 7 p.m. at the Liverpool Public Library, 310 Tulip St., Liverpool. Contact David Stuck, Liverpool Linguist Club president, at (315) 884-2668 if you have any questions or would like to RSVP.

February 23 n Navigating Successful Change discussion from 7:30 to 9:30 a.m. at Panera, 3401 W. Genesee St., Syracuse. Presented by CNY ASTD, the Change Management Special Interest Group will discuss key factors and share best practices and lessons learned. For more information, call (315) 546-2783 or email: info@cnyastd. org n Coaching Others professional-development workshop from 9 a.m. to 12:30 p.m. at SUNY Oswego Metro Center, 2 Clinton Square, Syracuse. Participants will learn the foundations of coaching adults, based on the basic principles of the legendary UCLA basketball coach, John Wooden. The workshop instructor will be Mike Mullen. The cost is $99, and registration is required. For more information, call (315) 399-4100 or visit: oswego.edu/ suites

February 27 n CNY BEST Information Session from noon to 1 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: info@cnyastd.org

February 28-29 n Leadership Challenge Workshop, Learn How Ordinary People Get Extraordinary Things Done twopart workshop from 7 to 9 p.m. at the Baldwinsville Public Library, 33 East Genesee St. on two successive evenings. The interactive workshop is based on the award-winning book, “The Leadership Challenge.” It is designed to teach participants how to increase their effectiveness as leaders in businesses and organizations. The program is free, but advance registration is required either in person or

February 17, 2012

Business Calendar

OF EVENTS

by calling (315) 635-5631.

February 29 n Making Your Company Green Certified Seminar from 5:30 to 7 p.m. at SEFCU Cicero branch, 8086 Brewerton Road. This is a free seminar presented by SEFCU and Frank Raymond Cetera, certified business advisor; Onondaga Small Business Development Center at OCC; and the Northside Urban Partnership. Reserve your spot by email: ncassell@ sefcu.com or call: (866) 733-2880, ext. 5321.

March 1 n CenterState CEO Business After Hours event from 5 to 6:30 p.m. at Dinosaur Bar-B-Que, 246 Willow St., Syracuse. Register by visiting www.centerstateceo.com

March 6 n More Bang for Your Buck: Low Cost Marketing Ideas for your Business course from 6 to 9 p.m. at Jefferson Community College, Watertown. Presented by the NYS Small Business Development Center and JCC’s Continuing Education Department, the course is intended for both existing and start-up small businesses. The cost is $40 and preregistration is required. Those interested in attending, can contact the SBDC at (315) 782-9262. The deadline for registration is March 1.

March 8 n CNY Sales & Marketing Executives Crystal Ball & Sales and Marketing Excellence Awards Ceremony beginning at 5:30 p.m. at the Sheraton Syracuse University Hotel & Conference Center. Dr. Debbie L. Sydow, president of Onondaga Community College, will be receiving the prestigious Crystal Ball Award. For more details and ticket information, visit cnysme.org, call (315) 8761868, or email: info@cnysme.org

$65/person; family discounts available. To register, contact Donna Herlihy at dherlihy@nyfbc.org or call (315) 579-2871.

March 14 n CNY BEST Information Session from 8:30 to 9:30 a.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: info@cnyastd.org.

the Cornell campus in Ithaca. This is an in-depth introduction to the laboratories, equipment, and staff managed by CCMR and made available to industry. The cost to attend is $55 (that includes lunch, parking, and reference materials on facilities). Registration opens on Feb. 22. For more information, visit: www.ccmr.cornell.edu/industry/facilities101/

April 27 n Eighth Annual Symposium on Energy in the 21st Century, A Division of Synapse Sustainability Trust, Looking Ahead for a Future in Renewable Energy, A Local & Global Perspective at The Links at Erie Village in East Syracuse. The symposium this year will include speakers from Germany on successful use of solar voltaics, and from Denmark on the use of wind as viable alternatives. Also included will be top decision-makers from the U.S. For details and registration information, contact Dr. Rhea Jezer, symposium chair, at (315) 727-0123 or email: rjezer@gmail.com

March 16

May 22

n Building the Business Case for Learning Programs discussion from 8 to 9 a.m. at Panera, 3401 Erie Blvd E., DeWitt. Presented by CNY ASTD, the Measurement & Evaluation Special Interest Group (SIG) will discuss gaining executive buy-in for learning programs. For more information, call (315) 546-2783 or email: info@cnyastd.org

n The 2012 CCMR Annual Symposium will take place at the Physical Sciences Building at Cornell University in Ithaca. For details, visit: www.ccmr.cornell.edu/ symposium. Registration opens Feb. 17. Contact CCMR Industrial Partnerships, Coordinator Amber Richter by calling (607) 255-4272 or email: industry@ccmr. cornell.edu

March 21

ONGOING EVENTS

n Nonprofit Awards Luncheon at the Oncenter in Syracuse. Celebrate the exceptional work done in our community by the nonprofit groups in Central New York, the Mohawk Valley, and Greater Binghamton. Nominate online at www. bizeventz.com. For more information, contact Joyl Clance at jclance@bizeventz. com, or call (315) 579-397.

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

March 30 n CNY ASTD Member Orientation from 7:30 to 9 a.m. at Sandler Training/ DB&B Peak Performance Management, 443 N. Franklin St., Suite 100, Syracuse. A discussion will be held on why and how to make the most of membership in CNY ASTD. No cost to attend. To register, visit www.cnyastd.org. For more information, call (315) 546-2783 or email: info@ cnyastd.org

April 4

n CNY BEST Information Session from 5:30 to 6:30 p.m. at MACNY, 5788 Widewaters Parkway, DeWitt. CNY ASTD will hold an informational session regarding the CNY BEST Learning and Performance Awards and the nomination/application process. Call (315) 5462783, or email: info@cnyastd.org

n F.O.C.U.S. Greater Syracuse Wisdom Keeper III Awards from 5 to 8 p.m. at the Nicholas J. Pirro Convention Center, Ballroom, Syracuse. Judith C. Mower will be honored as the 2012 Wisdom Keeper. For more information, contact Deb Scott at dscott@ci.syracuse.ny.us, or call (315) 448-8732.

n Work / Life Balance - Where are the Boundaries breakfast forum from 7:30 to 9:30 a.m. When families work together, live together, socialize together, boundaries can get blurred. The forum will discuss how to keep family-business missions clear and possibly a way to draw the line between work and life. The presenter will be Alan Andrews, an industrial consultant who has provided executive coaching, mentoring, and guidance to hundreds of leaders throughout the U.S. and Europe. Members are prepaid; nonmembers pay

n CenterState CEO Annual Meeting from noon to 1:30 p.m. at the Nicholas J. Pirro Convention Center at Oncenter. The agenda will include the $200,000 Emerging Business Competition, Business of the Year awards, remarks from President Robert M. Simpson, and a special keynote address. For details, visit www.centerstateceo.com

April 5 n CCMR Facilities 101 Workshop from 9 a.m. to 2 p.m. at Clark Hall Room 700 on

n Every Tuesday, Gung Ho Networking Group from noon to 1:30 p.m. at Ruby Tuesday Restaurant, 3220 Erie Blvd E., DeWitt. Possible referrals for you; this is not a tip club. First visit free. Contact Paul Ellis at (315) 677-0015 or visit www. GungHoReferrals.com n Second Wednesday of every month, Salt City Technical offers by appointment free consultation to entrepreneurs or inventors who would like to have their product ideas evaluated by a staff of trained engineers. For more information or to schedule a consultation, call (315) 456-8461, or visit www.saltcitytechnical. com n First Wednesday of each month, Business Innovation Days meetings from 9 a.m. to 5 p.m. at The Tech Garden, 235 Harrison St., Syracuse. Entrepreneurs and small businesses can meet one-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 Second Wednesday of each month, Salt City Technical assistance by appointment at the Tech Garden; free consultation to entrepreneurs or inventors who would like to have their product ideas evaluated by a staff of trained engineers. For details or an appointment, call Continued on next page


The Central New York Business Journal • 19

February 17, 2012

PEOPLE ON THE MOVE: new hires & promotions visor. In this position, he will be responsible for overseeing job operations, coordinating safety programs, and sales. He was most recently a foreman and has been with the company for 15 years.

ARCHITECTS

Sorber

Kelsey

Beardsley Design Associates Architecture, Engineering & Landscape Architecture, P.C. has named Peter C. Sorber and Todd H. Kelsey stockholders of the firm. Sorber leads the firm’s architectural discipline, is a registered architect in New York State, and has worked professionally in Central New York for more than 30 years. He holds an MBA from SUNY Oswego and an associate degree in architecture from SUNY Delhi. Kelsey is a graduate of SUNYIT Utica-Rome and a professional engineer with 18 years experience.

AUDIO/VISUAL EQUIPMENT William Riley has joined AV Solutions as vice president/general manager. His 25year career includes working as a channel sales manager for Modern Marketing Concepts, Inc.’s Enterprise division and vice president commercial sales for Pictometry International Corp. Riley holds an MBA from Northeastern University, and a bachelor’s degree in psychology and marketing from Syracuse University. He is a licensed construction supervisor in the state of Massachusetts, a certified graduate builder, a certified green professional, and a former member of the U.S. Green Building Council.

BANKING & FINANCE Jayne D. Smith has been named vice president, loan administration at Solvay Bank. Smith is a graduate of Skidmore College and has more than 25 years experience in the banking industry.

McGiveron

EDUCATION & TRAINING Carol Hill has joined SUNY Educational Opportunity Center (EOC) as the new work-based learning coordinator. Hill will facilitate partnerships between SUNY EOC and the business Hill community to create internship and job opportunities for students. She was previously the director of work-force solutions at CenterState CEO. Hill graduated from SUNY Geneseo and brings more than 20 years experience in the talent-development field to the center.

GOVERNMENT Assemblyman Will Barclay (R,C,I– Pulaski) was recently appointed Deputy Minority Leader by Assembly Minority Leader Brian Kolb (R,I,C-Canandaigua). Assemblyman Barclay had been serving the Minority Conference as assistant minority leader. Along with his new leadership role, Barclay was appointed to the Rules Committee. In addition, he currently sits on several committees, including Environmental Conservation, Energy, Judiciary, and Ways and Means. He is also the ranking member on the Insurance Committee.

HEALTH CARE

Smith

CONSTRUCTION Brian McGiveron of Van Derhoof Roofing Co., Inc. has been promoted to super-

Excellus BlueCross BlueShield has promoted Thomas P. Tiernan to regional director of sales. He will oversee Excellus BlueCross BlueShield’s midmarket segment sales, Tiernan strategy, and retention in the company’s Central New York and Utica regions.

Tiernan has been with Excellus BlueCross BlueShield for 12 years and most recently served as regional manager of sales for the Watertown market. Tiernan previously was an account executive with KeyBank Insurance in Watertown for two years. He also spent 16 years as a district agent and regional sales manager with Prudential Insurance, also in Watertown. Tiernan is a graduate of Herkimer County Community College.

LAW Green & Seifter, Attorneys PLLC announced that Paul M. Predmore has been elected to the firm’s board of managers. He has been with the firm for 23 years and is the principal attorPredmore ney overseeing all tax controversies at both the federal and state levels. Predmore has published articles on tax issues and is a lecturer on tax and business topics. Prior to joining Green & Seifter, Predmore was a trial attorney with the U.S. Department of Justice, Tax Division, where he represented the IRS in federal district and bankruptcy courts. He is a graduate of Albany Law School and St. John Fisher College.

MEDIA Jim Burns and Vicki Brackens are the new hosts of WCNY-TV’s “Financial Fitness,” a weekly program offering financial advice. Burns and Brackens will co-produce “Financial Fitness” Burns and take turns hosting the show. Burns, who is president and chief investment officer at J.W. Burns & Company in Syracuse, is a chartered financial analyst with 25 years senior-level investment-management Brackens experience. Brackens is a financial-services representative, chartered financial consultant, and senior financial planner for Brackens Financial Solutions Network, an office of MetLife in Syracuse.

NONPROFITS Oswego Industries, Inc. and its sister agency ARC of Oswego County have hired Lyndsay Frank as director of communications and community relations for the organization. Frank comes Frank to Oswego Industries, Inc. from Communities In Schools of Pennsylvania, a dropout-prevention organization, where she served as executive director of the Capital Region affiliate based in Harrisburg. Prior to that, she worked in the public-relations division in the Harrisburg office of Tierney, a fullservice advertising agency. Frank received her bachelor’s degree from Pennsylvania State University. Make-A-Wish Foundation of Central New York has named Amanda Timmerman program-services coordinator. Timmerman has been working for the Make-A-Wish Foundation since 2008. She previously worked as the celebrity-project coordinator for the Make-A-Wish Foundation of America in Phoenix, Ariz. Timmerman Timmerman is a graduate of Arizona State University, where she earned a bachelor’s degree in psychology and a minor in public relations and strategic communications. She worked at the university and also as an administrative and public-relations specialist at Moses Anshell.

TELECOMMUNICATIONS Verizon Wireless has named Scott Langley director of retail sales for the company’s upstate New York region. Langley has more than 13 years experience in the wireless industry, most recently as direcLangley tor of data sales in upstate New York. He also served as a district manager and a store manager in the retail channel. He has been with Verizon Wireless since 1998. Langley has 20 years of combined service in the U.S. Army and the New York Army National Guard, and is a veteran of Operation Iraqi Freedom. q

Business Calendar (continued) (315) 474-0910 or email: info@thetechgarden. com n Every Thursday, Empire Statesmen Toastmasters meet at 6:30 p.m. at Ruby Tuesday on Erie Boulevard in DeWitt. For more information, visit http://estm.freetoasthost. info or email: president@estm.freetoasthost. info n Every second and fourth Thursday of the month, The North Star Toastmasters from noon to 1 p.m. at C&S Companies, 499 Col. Eileen Collins Blvd., near Hancock Airport. For more information, contact Sandy Jurkiewicz at sjurkiewicz@centerstateceo.

com or call (315) 470-1802. n Every Friday, 40 Above: Workers in Transition from 9 to 11 a.m. at The Westcott Community Center, 817 Euclid Ave., Syracuse. Helping workers/job seekers aged 40 and above in search for work. Contact John A. Cruty (315) 569-3964, 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) 472-3104, ext. 103 or email: bbregman@cnybj.com

n First Friday of each month, Toolkit Day with SCORE by appointment at The Tech Garden. Counselors provide free, confidential, individual business mentoring to prospective or current business owners. For more information or to schedule an appointment, contact Lynn Hughes at (315) 5792862 or email Lynn@TheTechGarden.com n Every second and fourth Friday of each month, The SUN Group (Sustainable Upstate Network) meets from 7:30 to 9 a.m. at Tony’s Family Restaurant, 3004 Burnet Ave., Syracuse. For more information, contact Andy Picco at (315) 657-0135 or email: andrewpicco@gmail.com

n Every week, Syracuse Networking Professionals. Five meetings to choose from. For details, call Kevin M. Crook at (315) 4391803, or email KevinSNP@twcny.rr.com or visit SyracuseNetworkingProfessionals.com n CNY Connects is a networking organization that currently offers 12 groups from which to choose. If you are interested in visiting or joining any group, please contact Amy Kaschel of AK Consulting at akconsult@twcny.rr.com or call (315) 882-6127 for more information. To have your meetings or events in the Business Calendar, email them to movers@cnybj.com


20

• The Central New York Business Journal

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February 17, 2012

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Central New York Business Journal 2/17/2012  

Central New York Business Journal 2/17/2012 Issue

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