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T h e B u s i n e s s J o u r n a l 4 0 5 N . M a i n S t .

D e l p h o s , O H 4 5 8 3 3

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Retirement Planning 6

Electrical ContractingNews 9

Career Development 10

INSIDE

Business JournalOF WEST CENTRAL OHIO

THE

January 2014

The Regions Business Publication

Staff ReportDELPHOS Kalidas Unverferth Manufactur-

ing announced on Dec. 13 they expect to add 15-20 new jobs as the result of a 70,000-square-footexpansion to the Delphos facility. The facility waschosen for expansion after an agreement was nal-ized with AEP Ohio for relocation of a section ofsubtransmission that crosses the west side of theUnverferth property, which is where the additionwill be located. New machinery and equipment willbe added in the expanded area.

Expansions such as this are made possible bythe continued commitment of our employees in pro-ducing high-quality, in-demand products and with

the cooperation of AEP and Van Wert County in en-couraging our growth, Larry Unverferth, directorof manufacturing operations said.

AEP Ohio is providing Unverferth Manufactur-ing with an Economic Development RSP Grant to-taling $100,000 to assist in the relocation of powerlines. The RSP Grant program provides nancial as-sistance to new and existing industries for projectsthat create and retain jobs and generate new invest-ment within the AEP Ohio service territory.

AEP Ohio is pleased to partner with Van WertCounty in assisting Unverferth Manufacturing withtheir Delphos plant expansion stated Tim Wells,

AEP manager of economic & business development

Unverferth to expandmanufacturing inVan Wert County

See UNVERFERTH, page 5

Company creating 30 new jobs in Van WertNational Door & Trim is ex-

panding its facility located onGrill Road in Van Werts Vi-sion Industrial Park. The com-pany is nearing completion onthe addition of showroom of-fice space.

The company was foundedin 1978 and its primary prod-ucts include pre-finished doorsand trims that are ready to in-stall. In recent years, the com-pany has added custom kitch-ens and custom hardwoodflooring to its list of products.

Tom Turnwald, presidentof National Door and Trim,stated that the driving need forthis expansion is to showcasethe companys existing andnew products.

When things were slow-

est for us (during the housingmarket collapse) was 2009,Turnwald stated.

He noted that during thatslow period, the companyworked on expanding theirproduct lines.

Weve been growing forthe past three years and thesenew products require retailspace to show them, Turn-wald explained.

The companys current fa-cility is approximately 75,000square feet. The showroom ad-dition is around 2,600 squarefeet and the new office spaceis 1,300 square feet.

The expansion is an indi-cation that progress is beingmade in our Vision Indus-trial Park and that companies

have begun to invest in capi-tal projects to meet the needsof customers, stated CindyLeis, Van Wert County Eco-nomic Development director.The expansion is in an effortto promote new products and

expand their customer base,which will overall improve

the customer services and ulti-mately increase sales and em-ployment.

The company will eventu-ally be creating 30 new jobs,according to Turnwald. Thecompany currently employs

National Door & Trim is nearing completion on the ad-dition of a showroom and additional office space to theirbuilding. As part of the companys expansion, 30 new jobswill be created.

See COMPANY, page 4

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2 The Business Journal January 2014

www.businessjrnl.com

937.492.4423

. . . Global ApproachLocal Resources

www.industrialproperty.biz

Commercial & IndustrialSolutions for Over 30 Years.

Recent transactions in Mexico, California,North Dakota and Tennessee

Citizens National Bank (CNB) has named Rebec-ca (Becky) Spieles as Branch Manager of their VanWert office. In this position, Spieles is responsiblefor branch oversight, including daily operations, salesand financial performance.

Rebecca has over 15 years experience in the bank-ing industry and has been employed with CNB since2011, working in their Lima office as a CustomerService Representative. Margaret Thompson, AVP/Branch Operations Coordinator, said of Spieles, Herdedication to customer service and knowledge of fi-nancial principles has played an important role in thesuccess of our bank. We are pleased to acknowledgeher many contributions with this promotion.

Spieles previously attended Rhodes State Collegeand has completed additional enrichment courseworkfrom the Ohio Bankers League. She is an active mem-ber of Saint John the Evangelist Catholic Church. Re-becca and her husband, Drew, reside in Delphos, OHand have two children and one grandchild.

With offices in Bluffton, Celina, Defiance, Elida,Findlay, Lima, Springfield and Van Wert, CitizensNational Bank has assets totaling more than $600 mil-lion and has been serving the communities of WestCentral Ohio since 1920.

Rebecca Spielespromoted to branchmanager at CitizensNational Bank

Rebecca Spieles

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January 2014 The Business Journal 3

By Cheryl Parson, PresidentBetter Business Bureau Serving West

Central Oho

This is the time of year that companiesset goals for the upcoming year. Build salesfigures. Time to market and promote thefirm. Optimism and expectations abound.

This is also the time bogus and fraudulentcompanies begin trotting out great market-ing opportunities for businesses especiallysmall businesses - everything from spots onplace mats, maps, or calendars to traditionalor online yellow pages as well as various in-ternet sites.

But before you commit your companyshard earned funds to these marketing op-portunities take time to take a deep breathand be cautious.

First and foremost,dont be pressured intoagreeing to anything im-mediately. Ask how youcan reach the salespersonif you decide that youwant to purchase the ser-vices.

Check to make surethe businesses they claimare using the product or service offered re-ally are. Get references from those users andsamples of materials produced before you

agree to buy. Contact the references and askif the work was completed on time and thematerials were distributed as promised.

If the company making the offer is notfrom your area, shop and compare servicesand prices locally. It is often less expensiveto produce advertising materials yourself bydealing with a local business. If you dontknow of a local vendor for the proposed ser-vices, a quick check with your Chamber ofCommerce may be of great help.

It is helpful to know if problems with thecompany have already been reported. Check

its complaint record with the Better BusinessBureau or your local or state consumer pro-tection agencies.

If you decide to buy, always get a writtencontract that includes the companys name,address, and telephone number, the priceand payment schedule, as well as a descrip-tion of the product and materials, the numberthat will be produced, and the date and planfor distribution.

Never pay the full amount up front. In-stead hold out a substantial amount until youhave received confirmation that the materi-als have been produced and distributed ac-cording to the contract.

Help prevent other businesses from get-ting scammed by reporting fraudulent salesof advertising materials to law enforcementofficials and the Better Business Bureau.

Bogus businesses readyto take your money

BusinessJournal

THE

of West Central OhioVolume 23, No. 1

Publisher: Donald R. HempleContributing Writers

Jeffrey Gitomer Advertising: Donald R. HempleThe Business Journal is mailed to the top businessleaders in the 13-county region of West CentralOhio. Although information is gathered from sourcesconsidered to be reliable, the accuracy and com-pleteness of the information cannot be guaranteed.Information expressed in The Business Journal doesnot constitute a solicitation for the purchase or sale ofany products.

Copyright, The Business Journal of West CentralOhio, 2006, All rights reserved. Reproduction or use,without written permission of editorial, photographic

or other graphic content in any manner is prohibited.The Business Journal is published monthly at 405 N.Main St., Delphos, OH 45833

Contact Us

Telephone 419-999-4762

Don Hemple 419-695-0015 ext. 138

Marilyn Hoffman 419-695-0015 ext. 131

toll free 800-589-6950

Mail 405 N. Main St., Delphos, OH 45833-1598

For information concerning news,advertising and subscription e-mail us at:[email protected] [email protected]

www.businessjrnl.com

The Business JournalDistributed in13 counties...

ALLEN, AUGLAIZE,DEFIANCE, HANCOCK,

HENRY, MERCER, PAULDING,PUTNAM, SHELBY, VAN

WERT, WOOD, HARDIN, LOGAN

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4/124 The Business Journal January 2014

around 43.Van Wert City Council approved an Enter-

prise Zone agreement with National Door &Trim. This agreement provides the companywith a 100% property tax abatement for afive-year period.

Alexander and Bebout, Inc., of Van Wert, isthe general contractor for this project, provid-ing design-build services.

Turnwald noted that the facility uses ener-gy efficient lightning, but that is not the onlygreen element to the company.

Many of the products we make ourselvesare green, Turnwald advised.

He stated that all of the finishes used onthe various products are water-based and allof the wood used to manufacture the productscome from sustainable forests.

About 90% of our customers are residentcontractors and residential builders, Turn-wald explained, noting that the other 10% areindividuals.

He noted that National Door & Trimsproducts are typically supplied to homes val-ued from $350,000 up to $2 million.

According to Turnwald, the company man-

ufactures supplies for six to eight homes eachday.National Door & Trims customer base is

approximately a 130-mile radius from VanWert, according to Turnwald. He explainedthe companys coverage stretches to Toledo;Elkhart, Indiana; and the Dayton and Colum-bus areas.

Company(Continued from Page 1)

Troy, Ohio FDH Inc.has recently leased thebuilding at 2001 W. Stan-field Road in Troy, Ohio.FDH is a company that

provides a combination ofengineering, investigationand construction manage-ment services to clientelein the commercial, gov-ernmental, industrial andtelecommunications mar-kets. Since 1994, theyhave been a global leaderin non-destructive testingcivil infrastructure. Based out of Ra-leigh, N.C., FDH also has locations in

St. Louis, MO, Baton Rouge, LA, andIrvine, CA.The owner of the Stanfield Road

facility, Gary Osterfeld of Troy REInvestments LLC, is a Cincinnatiinvestor with a background in con-struction and commercial buildingsand specializes in properties locatedalong I-75. Gary boldly made invest-ments in a down market and purchasedspec buildings and fully leased build-

ings as well. Along withthis property on StanfieldDrive, Gary currently hasa 5,000 SF stand alone in-dustrial facility available

at 635 Olympic Drive inTroy.Tim Echemann of In-

dustrial Property Brokers,who brokered the deal,stated, We knew thisvery attractive industrialproperty with its high im-age brick faade and large

paved lot was not going tolast long. This facility was destined tobe occupied in the thriving community

of Troy, Oh.Industrial Property Brokers is apremier full service real estate com-pany offering sales, leasing, invest-ment analysis, tenant representation,and property management throughoutWestern Ohio and Eastern Indiana.The company is located at 213 N. OhioAve., Sidney, Ohio. For more informa-tion visit www.industrialproperty.bizor call 937-492-4423.

Engineering company expands into Troy location

FDH Inc. is located at 2001 W. Stanfield Road in Troy, Ohio.

Tim Echemann

VistageSurveying CEOs ofsmall to mid-sized

businesses since 2003CEOs held more optimistic expecta-

tions for gains by their own firms in the Q32013 Vistage CEO Confidence Index, eventhough they held less favorable views aboutthe overall economic environment. Despiethe debates about federal spending and thedebt ceiling as well as prospective changes

in monetary policies (the survey was con-ducted prior to the Feds recent surprise an-nouncement), firms expressed an increasinglevel of confidence that prospects for theirfirms wold steadily improve during the yearahead. The Vistage CEO Confidence Indexwas 97.8 in the 3rd quarter 2013 survey, justabove the 96.7 in the 2nd quarter survey butsubstatially above the 89.0 recorded in lastyears 3rd quarter.

To be sure, two-thirds of all CEOs be-lieved that their business wold ultimatelysuffer from the burden of increasing fed-

eral debt, but nonetheless expressed reaterconfidence in all aspects of their business.CEOs expected higher revenues and proits,and were more willing to boost fixed invest-ments and hiring. Seven-in-ten CEOs wouldprefer legislation that balanced increases inthe debt ceiling with reductions in federalspending.

8/13/2019 Bizjrnl Jan.2014

5/12January 2014 The Business Journal 5

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for Ohio.Other business incentives which made

the expansion attractive for the Delphosplant was a Van Wert County EnterpriseZone Tax Exemption for real property taxand a JobsOhio grant coordinated by Re-gional Growth Partnership (RGP) helped tomake the project possible.

Unverferth was granted a 10-year,90-percent tax abatement by Delphos CitySchools in late November for expansionproject.

Van Wert County Economic Devel-opment Director, Cindy Leis, said she is

pleased to see business retention and expan-sion in the county and expects additionaleconomic improvements throughout thecounty in 2014.

Unverferth Manufacturing has beenserving American farm operations since1948 with tillage equipment, pull-typesprayers, hay, seed and grain handlingequipment, and agricultural dual andspecialty wheels. The company is basedin Kalida, Ohio, with additional plantslocated in Shell Rock, Iowa and Delphos,Ohio. The Delphos expansion is designedto streamline production and meet customerdemand.

Unverferth(Continued from Page 1)

Citizens National Bank(CNB) has named MichaelDulle as Branch Manager oftheir Elida office. In this po-sition, Dulle is responsible

for branch oversight, includ-ing daily operations, salesand financial performance.Michaels wealth of bankingknowledge brings great valueto the bank and his dedicationto customer service will be anasset to the Elida community,said Margaret Thompson,AVP/Branch Operations Coor-dinator for the institution.

Michael has been employed with CNBsince 2010, working in the Findlay office

as a teller and Customer Service Repre-

sentative before transitioningto interim Branch Manager ofthe Bluffton office. He previ-ously attended the Universityof Northwestern Ohio and has

completed additional enhance-ment coursework from theAmerican Institute of Bankers.

Dulle is a member of SaintsPeter and Paul Catholic Church.He currently resides in Ottawa,OH.

With offices in Bluffton,Celina, Defiance, Elida, Find-lay, Lima, Springfield and VanWert, Citizens National Bank

has assets totaling more than $600 millionand has been serving the communities of

West Central Ohio since 1920.

Michael Dulle promoted to branchmanager at Citizens National Bank

Michael Dulle

The Business Journal of West Central OhioDistributed in 13 counties...

ALLEN, AUGLAIZE, DEFIANCE,HANCOCK, HARDIN, HENRY. LOGAN, MERCER, PAULDING, PUTNAM,

SHELBY, VAN WERT, WOOD

According to research,those businesses seek-ing the advantages of

being perceived as hav-ing greater resources,

being a leader andbeing more experi-

enced should utilize thestrategy of larger, morecolorful, more frequent

advertising.

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6/126 The Business Journal January 2014

Retirement Plan5 tips for last-minute retirement planning

What happens when you wake up onemorning and realize that you are not whereyou want to be in terms of retirement?Thats a situation many people find them-selves in.

Your best bet is saving early and often.But if you are nearing your desired retire-ment age, you might need to move into re-tirement mode if you havent been saving

for as long as you would like. If you findyourself in need of last-minute retirementplanning, here are some tips to help youmake the best of the current situation:

1. Maximize your employer match. Ifyour company offers a match, you shouldcheck to make sure you are maximizing it.Its free money for you. If you arent gettingthe maximum match, you should do what ittakes to get that match.

In fact, this late in the game, you need toboost your retirement account contributionsas much as you can afford to. If you alreadyhave maxed out a 401(k), open an IRA (tra-ditional or Roth) so you can make additionaltax-advantaged contributions.

2. Catch-up contributions. If you areover age 50, you have the chance to makecatch-up contributions. If you have reachedthe point where you are maxing out yourretirement accounts (and hopefully you are

to that point at this juncture), and you areeligible, its time to put in some catch-upcontributions in order to help the cause.

3. Look into index funds or ETFs. Eventhis late in the game, you might be able tobenefit from the right asset allocation. In-dex funds and index ETFs offer a degree ofdiversity, are low cost, and can provide youwith a decent amount of growth. Addition-ally, dividend stocks can provide you with away to ramp up your portfolio. A dividendreinvestment plan can provide automatic re-investment to compound your gains.

Its a good idea to consult a knowledge-able financial professional about your risktolerance before making this decision. Get-ting an unbiased view of what investmentsmight be appropriate for your situation willhelp your efforts to retire in your time frame.

4. Consider working longer. For somewould-be retirees, a longer career is a ne-

cessity. If youve started saving too late, youmight need a few extra years to build yournest egg a little bit. This doesnt mean thatyou have to work full time. You might beable to manage working part time, or on afreelance or consulting basis. Even a home-based business might be an option. Lookat the alternatives, and determine how youmight put off living only on your nest eggfor a little bit longer.

5. Downsize your lifestyle. Another real-ity is that you might need to downsize yourlifestyle if your nest egg is insufficient foryour current needs. In some cases, if youdont want to work a little bit longer, youmight need to re-evaluate your expenses.Selling some items, selling your home andmoving into a smaller place, and perhapsadjusting your view of retirement mightbe necessary if your nest egg isnt keepingpace.

Jane Birckhead, CPCU Executive Vice President

Trustee - Stepping Stones Center

Life Home Auto Business Income

Hukill HazlettHarrington Agency, Inc.

Insurance Since 1838513-793-1190

FAX: 513-795-5730 Cell: 513-479-1193Direct Line: 513-619-4621

Email: [email protected]

Serving the Corporateand Personal Community

For Over 30 Years Living the Rotary motto:

Service above self

Advice for people retiring in 2014The oldest baby boomers will turn 68 in 2014. Some boomers

are already retired, and many others will join them in the comingyear. Here are some tips for people planning to retire in 2014:

Revisit your asset allocation. Its important to dial down the riskin your investment portfolio as you approach retirement, but youalso need to ensure your portfolio will keep up with inflation overwhat could be several decades of retirement. As you approachretirement, it makes sense to scale back some of the risk in theportfolio, says Susan Strasbaugh, a certified financial planner andprincipal of Strasbaugh Financial Advisory in Colorado Springs,Colo. When you are talking about a 30-year retirement period,you dont need everything really conservatively invested becauseyou still need growth to stay ahead of inflation. Strasbaugh rec-ommends investing a portion of your assets in cash or short-termbonds, while investing some of your longer-term money more ag-gressively.

Stress-test your retirement finances. Take a look at the worst-case scenario for your investments, and consider whether you will

be able to pay for allof your retirementnecessities if thathappens. If you canfinancially afford toabsorb a loss like wehave seen in the pastand still have enoughincome, that is goingto be the most com-

forting thing, saysGreg Phelps, a certi-fied financial plan-ner and presidentof Redrock WealthManagement in LasVegas. If a loss of 25percent would cause

you perilous harm, then you need to go back to the drawing board.Simplify your investments. Unless you plan to make managing

a complicated investment portfolio one of your retirement hobbies,it will save time if you simplify what you are invested in and howmany accounts you have. Its very useful to consolidate your ac-counts, says Jerrold Grecu, a certified financial planner and pres-ident of Grecu Capital Management in Roseville, Calif. If youhave accounts at a variety of different institutions, its much moredifficult to manage statements.

Carefully consider when to claim Social Security. You dontnecessarily need to sign up for Social Security in the same year youretire. Social Security payments increase for each year you delayclaiming up until age 70. Generally, the longer you can put claim-ing Social Security off, the better you are, Phelps says. Even ifyou are pulling money out of a taxable account or an IRA account

See ADVICE, page 7

Full Payroll Service: Direct Depositing Check Printing Tax Depositing

Quarterly Payroll Reports Year End Reconciliation W2s & 1099s

Eric M. Macwhinney, President207 N. Main St. Delphos

419-227-9040 419-695-9040www.psi-payroll.com

8/13/2019 Bizjrnl Jan.2014

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Three must-dos to maximize retirement goalsThere was a day when retirement was

guaranteed by a company pension anda gold watch. Employees would evenspend decades with the same company.Unfortunately, that day is long gone. Infact, retirement is no longer a guar-antee by any stretch of the imagination,as the majority of individuals are nowresponsible for their own retirement plan-ning.

Americans have plenty to worryabout when it comes to retirement. Withpension plans becoming extinct, runningout of money to live comfortably is themost common concern. According to a

recent survey from Merrill Lynch, nearly40 percent of adults age 50 and older fearthey will run out of money in retirement.Making matters worse, only a third of old-er adults feel prepared for retirement if ev-erything goes as expected, and less than aquarter feel prepared if one spouse dies oris forced to retire early for health issues.

While a comfortable retirement mayfeel out of reach in todays economy,there are three vital ways to improve yourchances and decrease the likelihood of fi-nancial woes.

OBAMACARE: White House warnsenrollees to proceed with caution

1. Make goalsConsidering the long-term status of

Social Security, individuals have moreresponsibility than ever to create theirown financial goals for retirement. Asthe government is moving more and moreretirement income onto the private sectorand individuals, you need to look at hav-ing a million dollars in your retirementplan at the time youre going to start draw-ing down on it, Anton Bayer, founder ofUp Capital Management, said in a phoneinterview. That sounds like a big number,but its a real number. If you can do betterthan that, terrific.

Mr. Bayer, who has been a Certified Fi-nancial Planner since 1985,reminds clients that accumu-lating the first $100,000 is a

brutal up-hill battle that takesyears. However, retirementsavings build much faster af-ter the initial $100,000 as thepower of compound returntakes effect on a portfolio.Writing down your goals andfinancial plan also make theprocess easier.

Advice (Continued from Page 6)

more heavily in the earlier years, if you canput off Social Security until age 70, yourfinances end up much stronger at age 90.

Sign up for Medicare on time. Youcan first sign up for Medicare during theseven-month window surrounding your65th birthday. If you fail to sign up dur-ing that period (or within eight months ofleaving group health coverage connected toyour or your spouses job), your monthlyMedicare Part B premiums will increase by10 percent for each 12-month period youwere eligible for Medicare but didnt sign

up. There can also be penalties if you dontenroll in Medicare Part D and Medigapplans when you are first eligible to do so. .

Avoid health insurance gaps. If youplan to retire before age 65, consider howyou will find and pay for health insurancebefore you qualify for Medicare. Its notnecessary that you wait until Medicareage to retire, but its extremely importantto look at the cost if you do retire beforethen, Strasbaugh says. A lot of peoplewho were insured through an employer areshocked at the cost.

Remember to take RMDs from retire-ment accounts. Distributions from tradi-tional 401(k)s and IRAs are required af-ter age 70 1/2, and income tax is due oneach withdrawal. The distribution amountis generally calculated by dividing the ac-count balance by an IRS estimate of yourlife expectancy. If you miss a distribution,the penalty is 50 percent of the amount thatshould have been withdrawn.

Consider a gradual transition into retire-ment. Consider cutting back your hours orshifting to part-time work before you retirecompletely. This will give you a boost inleisure time while also bringing in someincome. Its really difficult to go fromworking 60 hours a week to nothing. Con-sider semi-retirement or a 30-hour-a-weekschedule, Strasbaugh says. Its importantfor people to think about what else they are

going to do with their time. Strasbaughoften asks her clients to write down whattheir ideal week in retirement will look like.

Decide how you will spend yourtime. Whether you want to travel, volunteeror relax, consider how you will fill yourdays in retirement. Many people spendmore than they expected because they un-derestimate costs like travel and hobbies,and many of them pick up new hobbies,Grecu says. Carefully consider how yourexpenses might change in retirement.

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See THREE, page 12

The Business JournalDistributed in 13 counties... ALLEN, AUGLAIZE, DEFIANCE,

HANCOCK, HARDIN, HENRY.LOGAN, MERCER, PAULDING,

PUTNAM, SHELBY,VAN WERT, WOOD

8/13/2019 Bizjrnl Jan.2014

8/12


Electrical Contracting NewsRiding the Technology Wave

Electrical contractors are hungry forchange. The new economic model has al-tered the way they grow and mature theirfirms. Although product manufacturers stillplay a vital role in dictating contractor of-ferings, it is technology thats making a sur-prising entrance into the strategic visioningprocess of the electrical contracting profes-sion. Technology has emerged as the pre-dominant driver for leveraging success inthe new economy.

Arguably, there are several drivers thatdefine the new economy. My earlier articleshave highlighted the need to evolve from apure services-only environment to a modelthat encourages a product-centric businesssolution to arrive, once again, at double-dig-it profit margins. Likewise, business size,international exposure, and self-generatedfunding (i.e., bootstrapping) will all playinto the future success of the individualcontracting firm. But its the future evolu-tion of the industry that remains a mystery.What will manufacturers bring to the table?Are there opportunities in the broader tech-

nology market that will have an immediateand longer-term impact on the electricalcontracting industry (see Future TechnologyTrends)?

Future Technology Trends

When faced with the question about thefuture of technology, the best foundation fora logical answer rests with both the expectedproduct and business evolutions. Specifi-cally, what are the bases that are being usedby manufacturers in their research and de-velopment labs to arrive at new products?Likewise, what trends are being forecast bybusiness theorists with regard to future oper-ational and organizational models? Thoughnot a perfected science, it is possible to takea glimpse at a proposed evolutionary route.

Product manufacturers are keen on de-veloping what can best be described assmart products those that take the de-cision-making (and corresponding actions)away from an individual and rest them witha mechanical box. At the simplest level,

programmable lighting ensures that technol-ogy, not a human hand, is responsible forminimizing energy usage while maximizinghuman comfort. On the higher end, wirelesstechnologies are now being used to informcentralized maintenance centers of possibleproblems with single-user technology tools,allowing fixes to be implemented fromthese off-site locations. In this case, the costof an on-site visit is negated, and the prob-lem is resolved in far less time.

If we logically follow product evolution,we could surmise that tomorrows futurewill eliminate the need for an electrical con-tractor to ever make a visit to a customer site except, of course, for the initial installa-tion. Energy efficiencies could be monitoredfrom off-site locations, and changes (in linewith the inhabitants desires) would auto-matically be programmed into the systems.Poorly performing system componentscould be bypassed as a short-term fix, andmore effectively planned system overhaulscould all but eliminate any form of electricaloutages. Electrical consumption would be

taken out of the hands of the individual andreside with the technological brain.

Driver versus enabler

Since its arrival in the early 1980s, massmarket technologies have always been de-fined as business enablers. Businesses wereencouraged to build their operating and or-ganizational models and, subsequently, seektechnology solutions to mechanize thesefunctions. Accounting systems and spread-sheets were used to improve efficiency, notchange the overall structure of the businessoperations. As such, technology enabled theoperations of the business.

During the ill-fated dot.com bubble ofthe 1990s, technology firms were commit-ted to developing products for a marketplacethat had yet to arrive. The adage of build-ing solutions for nonexistent problemssoon led to the demise of all but a handful oftechnology ventures. It was during this erathat the presumption of enabling technologygrew even stronger. After all, what valuewas technology when the application of itwas neither identified nor quantified?

Today, this long-standing premise is be-ing challenged. New technologies are ap-pearing at rapid rates, and businesses are ex-perimenting with their application oftenchanging their operating and organizationalstructures to accommodate these new inno-vations. While many of these technologiesare still in their infancy, businesses are morepoised to realize that leveraging a new formof innovation may, in many cases, be an ap-propriate strategic direction for the future.Technology has begun its evolution from

business enabler to strategic driver.Social networking is an example of anunproven but highly used new technology.Businesses are quickly jumping on sharedcommunication platforms, such as Face-book and LinkedIn, with little basis morethan it is presumed to be a business ne-cessity. In fact, many larger firms are dedi-cating significant resources to updating andmanaging their firms social brand. Yet, atthis point, there remains no definitive ratio-nale for such a business move.

There is a strategic decision facing elec-

trical contractors today remain stuck inthe traditional methods of business opera-tions that worked in previous economic erasor leverage the new technologies that are ef-fectively leading the charge out of the reces-sion and formalizing the foundation for thenew economy.

How technology will drive business success for electrical contractors in the new economy

See RIDING, page 9

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Technology today

Technology has already had a substantialimpact on the electrical contracting commu-nity over the last five years. For example,smartphones have eliminated the need for

some paperwork as field technicians areable to be dispatched to a customer site, fillout a work order, and accept payment all while interfacing with the business on-line accounting system; GPS systems havesaved business owners hundreds of dollarswith an ability to pinpoint the location oftheir vehicles at any time of day, ensuringemployees remain engaged throughout theirshift; and CAD systems have eliminatedthe need to hand-draw electrical schematicswhile allowing multiple contractor types touse a single set of building drawings.

Beyond the technologies that have al-ready been implemented into the contrac-tors operational processes, several newinnovations remain that are slowly being ex-plored by those adventurous enough to pushthrough conventional boundaries. Here are

just a few examples.Online video (e.g., Skype) has created

an ability to interact face-to-face with acustomer without ever leaving the office.No longer is it necessary to drive great dis-tances to resolve a potential issue. Instead,existing customers can request a virtualvisit. Through a video question-and-answersession, many issues can be resolved or, atthe very least, the anticipated resolution canbe determined. Not only does this approachhelp increase face-to-face interaction akey component to a satisfying customer re-lationship but it also allows for any triageto be done immediately, thereby eliminatingguesswork on the part of the contractor.

Online payment of an outstanding in-voice using either a credit card or third-party payment system (e.g., PayPal) createsan opportunity for the contractor to receivepayments at the convenience of the com-mercial customer. As many customers haveopted out of traditional hardcopy checks infavor of credit cards, the contractor is nowequipped to handle these payments againwithout even being in the office. Althoughmany contractors do charge an additionalfee for customers that use credit cards, itsassumed that this practice will diminish asthe majority of the population changes theirapproach to interacting with financial insti-tutions.

Electronic newsletters provide perhapsone of the most intriguing uses of behavior-al-based technologies. Through both theirwebsites and electronic mailings, contrac-tors are able to literally chart the actions oftheir existing and targeted customer base.As opposed to the olden days wheredirect mail was used to build visibility contractors can now segment their targeted

populations, test messages to market, and,most importantly, see the results of their ef-forts. This ability to see customer behav-iors decreases cost of sales as only those tar-geted entities that have exhibited behaviorsconsistent with the contractor offerings arepursued.

Hire a Chief Technology Officer

Not many of us are technology experts.Therefore, its logical to assume that yourability to foresee technology evolution maybe outside the realm of your skill sets. Yet,arguably, knowledge of this industry andits evolution is key to your future success.What can you do to remain abreast of thechanging technology industry?

If you look at your business today, youalready employ a financial expert eitheras an in-house position or as an outside advi-sor. The reason for employing this skill set isobvious they are there to guide you withthe financial decisions of your firm. From atechnology perspective, the same philosophyholds true. You need a resource presum-ably outside your employee base that canprovide you with insights and applications ofnew and emerging technologies.

When we talk about implementingtechnology or any form of change, there

are two camps the early adopters or thepack followers. Early adopters are thoseindividuals who see uses for technologiesthat are appearing in the marketplace andstrive to incorporate those innovations intotheir business operations (see Hire a ChiefTechnology Officer). For this group of in-novators, there is a dual-edged sword. Onone side is the possibility for untold riches,as these new technologies open up marketopportunities and thwart all forms of com-petition. Conversely, the promise of valueassociated with an innovation is unprovenmerely a hypothetical discussion that isbegging for a rationale result. As such, thelevel of risk and the counterpoint reward areexceedingly high.

Most individuals fall into the pack fol-lower mentality or those who have to beconvinced that there is a tangible valuefor making any change. While the risk isrelatively low, the upside rewards are alsomuted. Not only is there no competitive ad-vantage being sought, but the reality is thestatus quo is also remaining intact.

Of greatest concern are those contrac-tors who are still waiting on the sidelines.As discussed earlier, the current technolo-gies highlighted previously are already inuse by your competitors. Not staying cur-rent puts an unfair strain on your overall in-

frastructure. Sure, your services may be thevery best, but the impression left with yourcustomer may be tarnished.

The future

From a business perspective, technol-ogy has already made great strides at for-

ever changing the traditional organizationalstructure of an electrical contracting firm.Remember that a traditional firm is com-prised of three functional divisions: salesand marketing, operations, and finance andadministration. Of these functions, only op-erations is a core activity of any business.The remaining components are not per-ceived as unique business activities.

With this in mind, accounting softwarefirms have already made the move to of-fering their products through on-demandplatforms jettisoning the marketplacethat presumes every contractor will buy andhouse their own accounting system. Theseproduct providers understand that the pri-mary business of an electrical contractor isnot accounting. They are making the evolu-tionary step that accounting (along with theancillary administrative functions) will ef-fectively be outsourced in the new economy.Now, with one level of evolution alreadyin play, that traditional business model hasbeen forever changed.

Riding(Continued from Page 8)

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Career Development5 tips to improve your career development

Could your career development and man-agement use help to gain momentum? Peo-

ple who are the most successful and satisfiedin their careers have proactively determinedwhat they want from work. Once theyve de-cided on their goals, they make a plan to ac-complish the goals.

Developing a timeline with career goalsand expected milestones is also an effectiveway to manage your career. Bringing yourboss and his or her sponsorship and mentor-ing into the picture will ensure that you havean internal mentor who will help you manageyour career.

Some companies have formal programsto help employees develop their careers. Inothers, you will need to informally pursueyour career development. Companies withprograms generally focus energy on helpingemployees develop and follow a career path.

The career path is discussed at severalmeetings bi-annually with the employeesboss. The company doesnt own the careerpath; the employee does. But, the companydemonstrates commitment to its employeesby assisting where possible with resources of

time and dollars.Career paths are recommended for the

same reason that I recommend goals. Theyare the written plan that can help each em-ployee focus on what is most important tohis or her fulfillment and success. Without aplan, you can feel rudderless and you haveno benchmark against which you can mea-sure your progress.

5 Tips for StrategicCareer ManagementDr. Tracey Wilen-Daugenti (pictured),

Vice President and Managing Directorof Apollo Research Institute and VisitingScholar in Stanford Universitys Media Xprogram, recommends these additional ca-reer management strategies. Succeeding ina demanding, changing workplace requires astrategic career management plan. Employ-ers want to attract, hire and retain employ-ees who provide the best value. So consideryourself a business with a product to sell , andcreate a strategy for marketing your work-place value.

Data from the Apollo Research Insti-

tute on the future of education, work andcareers suggests the following five careermanagement strategies:

Proactively engage your manager in adiscussion about your career goals, and col-laborate to create a career development plan.

The most significant opportunity to exertinfluence is to involve your manager in thecareer planning process.

Investigate short- and long-term skillrequirements. If your goal is to be the VicePresident of Human Resources, understandthe education, skills, technology and expe-rience requirements, and develop interimcareer plans for achieving your long-termcareer goal.

To increase your knowledge of careeroptions, request one-on-one informationalmeetings with colleagues and managers. The

purpose of these brief meetings is to gatherinformation to help you make educated ca-reer decisions. People are generally willingto share their success stories and advice.

Volunteer to complete challenging proj-ects and assignments. One of the best waysto advance your career is to identify an or-ganizational problem and propose a solu-

tion. By offering to implement the solution,you will not only increase your visibility asa problem-solver in the organization, but youmight also expand your skills in the process.

Consult the Human Resources depart-ment to learn about career development and

job opportunities such as tuition reimburse-ment for a college degree or certification,in-house technical or professional trainingcourses and available job openings. Take ad-vantage of available opportunities. Maintainyour momentum and commit to continuousskill building and improvement. By planningyour career strategy, you are increasing yourchances of staying employable and achievingyour long-term career goals.

Each of us has a certain number of yearsto invest in working and making a living.Having a job is fine, but creating a career will

maximize your opportunities for success. Tohave a successful career requires that youpursue career management strategies likethese. Your

A successful career doesnt happen un-thinkingly. It needs planning, tending, andfrequent review. Are you ready to pursuethese career development strategies?

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Dear Jeffrey, I am a huge fan. I recentlyhad a WOW experience that completely co-incides with your philosophy on customerloyalty versus satisfaction. Today, I receivedthe following email from Amazon:

Hello, We noticed that you experiencedpoor video playback while watching the

following rental on Amazon Video On De-mand: The Hunger Games. Were sorry forthe inconvenience and have issued you a re-fund for the following amount: $3.99. WhileAmazon Video On Demand transactions aretypically not refundable, we are happy tomake an exception in this case. This refundshould be processed within the next 2 to 3business days and will appear on your nextbilling statement for the same credit cardused to purchase this item.

This is amazing to me for a few reasons.Yes, I did notice that my movie was buffer-

ing more than usual and, yes, it was annoy-ing. However, it was nothing more than aminor frustration. I didnt complain. I didntcomplete a survey or give any feedbackabout this experience. Truthfully, until I re-ceived this email, I hadnt given it a secondthought.

When I got this email, it stopped me inmy tracks. THEY NOTICED. They noticedthat this particular experience was belowtheir normal standards. But whats more im-portant, THEY NOTICED WITHOUT METELLING THEM.

Good compa-nies would refundmy money if I com-plained. Of coursethey would, that isexpected. I neverhave had a company

refund my mon-ey without beingprompted. Never.And this, this was asurprise.

Would I haveused them againeven if they did notrefund my mon-ey? Yes, often. So whats the difference? Iwouldnt have REFERRED them. I receivedthis email recently. Since then, I have told allmy coworkers I came in contact with, posted

this on my Facebook wall, and now am writ-ing you.Amazon lost four dollars today, but they

gained a customer for life! It was so impres-sive, I had to share. Make it a great day, Can-dace

Brilliant, eh? Proactive, memorable ser-vice.

Amazon is monitoring the quality oftheir streaming bandwidth and can iden-tify quality issues. Then, they DO SOME-THING ABOUT IT. No waste of time andmoney survey, no phony empty apology,

just a good, old fashioned admission ofguilt, and a proactive refund for poor per-formance.

My bet is Amazon has given thousandsof these, and the same customer responsehas happened with every one of them. Whata strategy! Lets make sure the customer

experience was great, or lets give them arefund.Simple. Powerful. Profitable. Give up

$4.00 to earn thousands. I wonder whothought that one up? Certainly not their ad-vertising agency.

Look at the elements of business andsales as a result of Amazons action, andcustomer reaction: a huge wow, several so-cial postings, more social proof, an amaz-ing testimonial, customer loyalty, and passalong value that cannot be measured onany ROI scale. Amazons actions breed re-

turn on proactive, memorable service theWOW factor, social response, and customerword of mouth. Its WAY beyond price-less in the long term, its worth a fortune.

HERES YOUR LESSON: You can in-vest in some marketing program to reachnew people or you can invest in givingyour existing customers the best servicepossible, and let THEM find new people foryou.

PREDICTION: Ill bet the investmentin existing customer experience is one-tenththe cost of any marketing program. In fact,

I doubt this type of outreach is even on amarketing teams mindset. Theyre still inthe Stone Age measuring ROI.

Amazon has lead the Internet all the waywith vision and tenacity. Quality and value.Ease of doing business, buy with one click.Suggestive buying and published reviews.

Not just price, delivery.And now add to that list: proactiveWOW interaction. They dominate becausethey differentiate. They dominate becausethey innovate. They dont study the market

they create it (like Apple). Most marketingstudies are a CYA act of companies afraid tomake mistakes, let alone be bold.

Take this lesson to heart and take i t toyour customers. If you come up with some-thing creatively compelling, you can alsotake it to the bank!

Jeffrey Gitomer is the author of The SalesBible, Customer Satisfaction is WorthlessCustomer Loyalty is Priceless, The Little RedBook of Selling, The Little Red Book of SalesAnswers, The Little Black Book of Connec-tions, The Little Gold Book of YES! Attitude,The Little Green Book of Getting Your Way,The Little Platinum Book of Cha-Ching, TheLittle Teal Book of Trust, The Little Book ofLeadership, and Social BOOM! His website,www.gitomer.com, will lead you to more in-formation about training, seminars, and webi-nars - or email him personally at [email protected].

Whats your proactive marketing approach to loyalty?

Overall, construction materials pricesfell 0.5 percent in November and are uponly 1.1 percent year over year, accord-ing to the Department of Labors Dec. 13Producer Price Index. Nonresidential con-struction materials are down 0.6 percent forthe month and are 0.7 percent lower than

the same time last year.November represented another monthof remarkable stability for construction in-put prices, said Associated Builders andContractors (ABC) Chief Economist Anir-ban Basu. Although many investors pre-dicted significant inflation this year due toexpansionary monetary policies in much ofthe developed world, there continues to bea lack of significant inflationary pressuresboth globally and nationally.

Overall, the nations wholesale goodsprices expanded 0.2 percent in Novem-

ber, but are down 0.9 percent year over year.Next year is unlikely to offer as muchstability as 2013, Basu said. Global eco-nomic growth is set to accelerate and theapparent budget deal in Congress shouldproduce greater certainty among busi-nesses, helping improve an already benign

national economic forecast. Tension in theMiddle East also continues to be a consider-ation. Together, these factors suggest mate-rials price increases may be at least slightlymore rapid in 2014.

THE FOLLOWING MATERIALS

PRICES INCREASED IN NOVEMBER.Fabricated structural metal productswere up 0.1 percent for the month and 0.3percent year over year.

Softwood lumber prices increased 2.6percent on a monthly basis and are up 12.8percent year over year.

Natural gas prices were up 1.9 percentfor the month and 3.3 percent on an annualbasis.

Nonferrous wire and cable prices rose0.2 percent on a monthly basis and aredown 3 percent year over year.

Iron and steel prices were up 1.8 per-cent for the month and are down 0.1 percentcompared to the same time last year.

Prices for plumbing fixtures and fittingsinched up 0.1 percent in November and areup 1.6 percent year over year.

Steel mill products prices increased 0.8

percent in November but are down 0.6 per-cent compared to the same time last year.

THE FOLLOWING CONSTRUCTIONINPUTS EXPERIENCED PRICE DE-CREASES IN NOVEMBER.

Prepared asphalt, tar roofing and siding

prices were down 3.8 percent for the monthand 0.3 percent year over year.

Crude petroleum prices fell 10.3 percenton a monthly basis but are up 0.9 percentyear over year.

Crude energy prices decreased 5.7 per-cent in November but are up 0.6 percentcompared to the same time last year.

Concrete products prices were flat in

November and are up 2.8 percent year overyear.

Construction materials prices remain stable in November

Jeffrey H. Gitomer

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2. Perform quarterly check-ups

Individuals shouldnt worry about ev-ery headline they come across on a dailybasis, but they should take some time toreview their portfolios throughout the year.I recommend people take their quarterlystatement and make a 30 minute appoint-ment with yourself or spouse, explains Mr.Bayer. Go to a coffee shop, or somewhereoutside of the house, and sit down to reviewthe statement. This is hopefully going to bea million-dollar account so take it seriously.This applies to even a $600 account. Its theprocess that you want to instill.

There are six questions to consider whenperforming a quarterly check-up:

Did you make any progress with theaccount balance?

What is your rate of return? Are your current allocations workingfor you?

What is your current balance and fu-ture contribution amounts?

How is your performance given yourfund options?

How does your portfolio stack upagainst the broad market?

Mr. Bayer adds that, Its very importantto look at whats not working. The irony ofhuman behavior is that when things are re-ally bad, people like to ignore their state-

ments. Thats absolutely the wrong thing todo.AMERICAS EATING HABITS: Over-

weight but unchanging

3. Take advantage

When it comes to saving for re-tirement, every dollar counts. Individualsshould remember to take advantage of401k plans when available. The 401kplan is by far the most efficient savingsaccount available to Americans. In fact,

theres almost no history of somethinglike this available to the average Ameri-can willing to contribute a small amount oftheir paycheck, explains Mr. Bayer. Formany participants, their employer is provid-ing some type of a matching contribution.Its a paycheck by paycheck, year by yearbenefit that if theyre offering, you wantthat. Any free money that can be put intoyour account, you need to take advantageof it.

APPLE: Headed for $600 a share?If youre young, you can take advan-tage of Father Time by starting to save for

retirement as soon as possible. Individualsage 50 or older can take advantage in their401k plan by contributing an extra $5,500on top of the normal $17,500 contributionlimit.

Three(Continued from Page 7)

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