October 2010 Business Magazine

THINGS YOU CAN DO TO KEEP PENNSYLVANIA PRODUCING5

1. StayconnectedtotheMBAGovernmentAffairsofficethroughour FacebookpageandTwitter.

2. Stayup-to-dateonlocal,stateandnationalnewsbyreceivingtheMBA’sdailyonlinenewsletter,News You Can Use.

3. Contactyourlocal,stateandfederalelectedofficialstovoice your opinion onbusinessissuesimportanttoyou.

4. SubscribetoThe Hill Midweek Report–yourweekly“go-to”resourceforstateandfederalupdates,hottopics,actionalertsandupcomingevents.

5. VisittheMBA-onlineadvocacyprogramCapwiztosendyourmessagestoyourlawmakersonthespot.

5Each Week

5Each Month Each Year

1. Readthe“On the Hill”sectionoftheBusiness Magazine,forin-depthcoverageofbusiness-relatedlegislationandhappenings.

2. FindouthowyourstateandfederallegislatorsscoredontheMBA-Key Votetrackingsystemprogram.

3. ReadtheIssues 2010: MBA Legislative Priorities Briefing Book,whichprovidesthefactsandsolutionstokeychallengesfacingthebusinesscommunity.

4. AttendLegislative Luncheons sponsoredbytheMBAtoheardirectlyfromelectedofficials.

5. VoteintheKeep Pennsylvania Producing online polls.

Vote

1. Voteintheprimaryandgeneralelectionsbysupportingpro-business,pro-growthcandidates.

2. GrowtheMBA-PAC–yourpersonalfinancialcontributiontothepoliticalactioncommitteewillsupportpro-businesscandidates.

3. LobbyyourlegislatorsattheMBA-sponsoredHarrisburgandWashington,D.C.Hill visits.

4. Invitelegislatorsforaplant touratyourfacilitytoeducatethemontheimportanceofmanufacturingjobs.

5. ParticipateintheEconomic Snapshot Surveybygivinginputonthestateoftheeconomyandoperationsatyourcompany.

Join the MBA advocacy coalition Keep Pennsylvania Producing at www.mbausa.org/government-affairs.

5

Great Lakes Case & Cabinet Co., Inc.

BUSINESSM A G A Z I N E

VOLUME XXIII, NUMBER 10 OCTOBER 2010Manufacturer & Business Association

®

MADE

IN PAPage 12

M A G A Z I N E

NATIONAL TOOLING & MACHINING ASSOCIATIONof

NORTHWEST PENNSYLVANIA

MADE IN AMERICA | MADE IN PA

Committees& Teams

The National Tooling & Machining Association (NTMA) is the national representative of the custom precision manufacturing industry in the United States. For the most part, the NTMA members are small businesses, yet the industry generates sales in excess of $25 billiona year. Our members design and manufacture special tools, dies, jigs, fixtures, gages, special machines and precision machined parts. Some firms specialize in experimental research and development work.

www.ntma.com

ADVISORY

EXECUTIVE

FINANCE

MARKETING

MEMBERSHIP

PROGRAMS

TRAINING/TECHNOLOGY

For More InformationVisit Us at

www.nwpa-ntma.com

P.O. Box 203Meadville, PA 16335Phone: 814.720.0094

Fax: [email protected]

Regional Programs

National Benefits

to adopt a pro-manufacturing and small business agenda.

Member Business Promotion

Organized in 1943, the National Tooling and Machining Association (NTMA)represents 40 chapters in the United States of America

with 1,400 member companies and over 37,000 employees.

The NTMA is a phenomenal network for strengthening and growingyour business and to build the future leaders of your organization.

EVENTS >

38 / Training GraduatesSee photo coverage of the Association’s recent Recognition Ceremonies honoring more than 100 graduates of our professional development and computer training courses.

FEATURES > 3 / SpotlightGeneral Manager Jed Davis addresses the time-honored traditions and new technology that have made Meadow Brook Dairy one of the region’s leading producers of high-quality milk and dairy products.

12 / Made in PAHear from area manufacturers in a wide range of industries as they explain the eco-nomic importance of manufacturing in the Keystone State.

15 / Manufacturing ShowcaseSee our listing of companies that are proud to manufacture in Pennsylvania.

30 / Keep Pennsylvania Producing Coalition Learn how you can become part of the Keep Pennsylvania Producing Coalition, the Association’s grassroots advocacy initiative.

33 / On the Hill As Election Day draws near on November 2, Association Government Affairs Director Sheila Sterrett explains the urgency of electing candidates who support a pro-business agenda.

22DEPARTMENTS > 5 / Business Buzz22 / HR Connection

26 / Legal Q&A41 / People Buzz

12October 2010

Register now to receive the FREE digital edition of the Business Magazine online at www.mbausa.org!

EDITORIAL > 7 / Health Matters Why Employee Assistance Programs (EAPs) are a key resource in effectively leading and managing today’s workers. SANDRA CAFFO

9 / Legal BriefWhat a recent court decision says about employers modifying workers’ comp wage loss benefits.JOHN W. DRASKOVIC

11 / Financial AdviserWhy more businesses are benefiting from the Research and Experimentation Tax Credit.ROBERT E. POWER

25 / In the BankAlternative investment strategies that are worth exploring.MATTHEW R. LOEFFLER

37 / Energy UpdateLearn more about the EEA-PA program and how it has saved members more than $1 million in electricity costs.J. DAVID BELL

Great Lakes Case & Cabinet Co., Inc.

BUSINESSM A G A Z I N E

VOLUME XXIII, NUMBER 10 OCTOBER 2010Manufacturer & Business Association

®

MADE

IN PAPage 12

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Blue Ocean Strategy Center

33

October 2010 > www.mbausa.org > 1

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SPOTLIGHT > by Karen Torres

VOL. XXIV, NO. 10 OCTOBER 2010

© Copyright 2010 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The maga-zine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

Mission StatementThe Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer Yvonne Atkinson-Mishrell& Business John ClineAssociation Board Dale Deistof Governors Timothy Hunter Dan Ignasiak Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Sue Sutto Phil Tredway

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Contributing Writers Sandra Caffo Jessica Crocker John W. Draskovic Matthew R. Loeffler Robert E. Power Photography Karen Torres

Contributed Photos Ainsworth Pet Nutrition LORD Corp. Mack Trucks Woolrich Zippo Manufacturing

Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 [email protected]

Design, Production Printing Concepts Inc. & Printing [email protected]

Additional Design Jessica Crocker

ON THE COVER: Manufacturing continues to thrive as a major economic driver in the Keystone State. See full story on Page 12.

Meadow Brook Dairy is currently one of the 40 brands of Dean Foods Co., the largest dairy processor in the United States. Please describe the wide variety of products that you manufacture.Meadow Brook’s focus is producing delicious healthy beverages for the whole family to enjoy. We provide a wide range of dairy products supporting the retail, institutional and food service sectors. Our primary products include white and flavored milk, cottage cheese, sour cream, half-and-half and soft serve ice cream mix. A few other products we offer include organic milk, orange juice and Swiss Premium Iced Tea. We offer these items in a variety of sizes ranging from 5-gallon containers down to 4-ounce cartons. We often hear the slogan, “Milk. It does a body good.” How has increased attention on nutrition impacted your business?The increased attention to nutrition has led us to look closer at the products we manufacture and sell. Consumers are asking for lower fat items and are concerned about preservatives. We recently reformulated our flavored milks to reduce the sugar content and lower the calories. Schools are concerned about the nutritional value of the milk they serve the children. Our new flavored milk formulas address these concerns. Also, one of our newest items, Swiss Premium Iced Tea, is all-natural with no preservatives or high fructose corn syrup.As a food manufacturer, Meadow Brook Dairy is dedicated to consistently delivering safe and wholesome products to its customers. Please explain some of the safety and quality systems that you have in place and the importance of these measures to your company’s success. Meadow Brook Dairy is committed to quality and safety. In July of 2009, we achieved the highest level of SQF certification available, Level 3. Safe Quality Foods (SQF) is a leading global food safety and quality certification program. The program provides independent certification that our food safety and quality management system complies with international standards. Our commitment to quality is integral to our success. It provides assurance to our customers that we produce quality products.Meadow Brook Dairy services the greater Erie, Pennsylvania area, and, in addition to its processing facility located in Erie, has distribution centers located in Syracuse, Elmira and LeRoy, New York. Please describe the size of Meadow Brook’s operations – work force, estimated sales and annual production?Meadow Brook Dairy has 200 dedicated employees throughout our organization and processes over 26 million gallons of milk each year. On average, we receive 100 tankers of raw milk each week for processing.Throughout its history, Meadow Brook has embraced new advances in the dairy industry to stay competitive. Please provide some examples.Two recent changes that Meadow Brook has adopted are rBST-free milk and the light-blocking bottle. In 2008, consumers started asking for milk without rBST, an artificial growth hormone given to cows to produce more milk. Shortly after consumers started inquiring about rBST, we converted our milk supply to 100-percent rBST-free milk. Prior to that, we introduced a light-blocking bottle that keeps out harmful UV rays improving flavor and quality.In your experience, how competitive is the food manufacturing industry and what is your outlook for 2011?The dairy industry is extremely competitive with plenty of capacity in the marketplace.

With a history that spans nine decades, four generations and hundreds of employees, Meadow Brook Dairy has grown from a family owned business, founded by Leroy and Lloyd McGarvey in 1932, to becoming one of the largest and most modern manufacturing, storage, distribution and laboratory facilities in the region. General Manager Jed Davis of the Erie office at 2365 Buffalo Road recently sat down with the Business Magazine to address the time-honored traditions and new technology that have made Meadow Brook Dairy one of the region’s leading producers of high-quality milk and dairy products.


CLARION INDUSTRIES MAKES $10 MILLION CAPITAL INVESTMENTClarion Industries will complete work this month on several major manufacturing initiatives that will help prepare the company for future growth. The capital expenditures target energy efficiencies, innovation and quality technologies, and increase manufacturing production capacity.

A portion of the $10-million investment has been dedicated to improving plant efficiencies, including two projects that will provide upgraded environmentally smart designed manufacturing lighting and will replace the company’s clean air environmental system.

“Clarion’s volume has significantly outpaced our expectations. Our new ownership group, that invested $26 million about 14 months ago, believes now is the time to invest

aggressively to support our future growth opportunities,” said Tony Sturrus, president and CEO, Clarion Industries.

With corporate offices in Shippenville, Pennsylvania, Clarion Industries is the parent company of Clarion Boards, Inc. and Clarion Laminates, LLC — the only truly integrated laminate flooring operation in the USA, with HDF panels and laminate flooring produced in one 660,000-square-foot state-of-the-art facility that connects the two factories in one location.

For more information, visit www.clarionindustries.com.

SMITH PROVISION SCORES WITH PITTSBURGH PENGUINS DEALAt a recent news conference, Erie-based Smith Provision announced a multi-year agreement to become the official hot dog of the Pittsburgh Penguins and the Consol Energy

Center in Pittsburgh.

As part of the deal, Smith’s hot dogs, sausages and deli meats will be served exclusively at all Penguins home games and during events and concerts at the new Consol Energy Center. The partnership will provide the company with extensive marketing opportunities at the new arena, as well as a major presence with the Penguin’s broadcasts, Web site and fan experience.

According to David Peart, the team’s vice president of Business Development, the Pittsburgh Pen-guins chose Smith’s because of their uncompromising commitment to quality.

By the end of the agreement, Smith Provision hopes to deliver 4 million hot dogs to the arena annually.

For more information, visit www.smithhotdogs.com.

Business Buzz DEPARTMENTS > Contact: Jessica Crocker

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Continuous change is the norm in today’s workplace for large, medium and small companies. Regardless of size, a company has to do more with less, especially given the current economic environment.

The pace and volume of information has increased rapidly and there is a growing amount of specialization within industries and professions. It’s more than likely a company will have employees as young as 20 and as old as 70, and every age in between. What engages and drives each of these groups varies.

Leaders must focus on external market conditions while hiring, engaging and retaining a healthy and productive work force. The good news is resources are within easy reach in the form of Employee Assistance Programs (EAPs). EAPs are a key resource to support leaders in effectively leading and managing today’s workers.

How is an EAP Capable of Providing Leadership Support? 1. Leadership support has been a part

of EAPs from the beginning, some 60 years ago. The program assisted supervisors and managers in dealing with troubled employees at work — with the focus on alcohol.

2. Over time, EAPs have built on that kind of expertise to provide consultation to HR, leaders, managers and unions on a wide range of issues. Resolving workgroup problems, managing a multi-generational workplace, positively dealing with differences and restoring productivity are some examples.

3. A company’s most valuable resource is its employees and what impacts them impacts the

company’s bottom line. EAP professionals are equipped to partner with an organization to use EAP services to meet corporate objectives.

Ways an Employer Can Take Advantage of an EAPIn addition to meeting the needs of individual employees, EAPs provide a wide range of organization support services including:

dealing with a difficult employee situation;

to the EAP for personal reasons or job-performance issues;

communications, including newsletters, Web sites and presentations aimed at supporting wellness and productivity;

support successful return to work; and

engagement and other priority initiatives.

A Matter of Disrespect As the pace of work increases, workers’ stress also increases. One way this shows up is in work groups not pulling together, being disrespectful toward each other, forming cliques or factions and becoming inefficient on the job. It’s a common scenario in today’s workplace.

An EAP can examine what’s fueling the unrest and support the manager, HR, and any other leaders who need to be involved, in developing a plan to address the situation. Perhaps the manager will need to change management style. Or, it could be

one or more employees would need to get referred to the EAP. Training may become part of the process. Because an EAP understands the culture of a company as well as the needs of the individual employees, it can be an active part of developing the problem resolution strategy.

Additionally, EAPs address other challenges like layoffs. An EAP can support employees who are leaving the company, as well as those who are staying and may be feeling guilty. It also can help managers to maintain calm and keep staffs productive through the turnover.

The Challenge Leaders need to take care of them-selves so that they can successfully lead their organizations. In part, that involves identifying and using available resources. The EAP is one such resource for use by all levels of the company through in-person, telephone and online intervention.

For more information on the benefits of EAPs, please visit upmchealthplan.com.

Employee Assistance Programs Are a Key Resource for Today’s Employers

Health MattersEDITORIAL > by Sandra Caffo

Sandra Caffo is senior director of LifeSolutions, which is a UPMC WorkPartners company. UPMC WorkPartners is one of the integrated partner companies of the UPMC Insurance Services Division, which also includes UPMC Health Plan, UPMC for You (Medical Assistance), and E-Benefits. UPMC Insurance Services Division companies offer a full range of insurance programs and products.


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Prior to the 1996 amendments to the Pennsylvania Workers’ Compensation Act, an employer seeking to reduce an employee’s wage loss benefits was required to produce evidence of an open job fitting the employee’s physical limitations. The employee was only then required to demonstrate good faith in following through on the job referral.

The 1996 amendments eliminated the requirement to offer a job to the claimant and allowed benefits to be reduced through the use of an “Earning Power Assessment.” The assessment is performed by a vocational expert and establishes an injured employee’s “earning power,” which is defined, in part, as follows:

“Earning power” shall be determined by the work the employee is capable of performing and shall be based upon expert opinion evidence, which includes job listings with agencies of the department, private job placement agencies and advertisements in the usual employment area.

The RulingThe Commonwealth Court’s recent decision in Phoenixville Hospital v WCAB (Shoap), No. 2188 C.D. 2009 appears to simplify an employer’s burden in modifying wage benefits through the use of earning power assessments. There, the employer filed a Modification Petition seeking to reduce the claimant’s wage benefits based upon an Earning Power Assessment showing claimant to have an average weekly earning power of $347.41. The employer presented medical testimony establishing claimant was capable of engaging in sedentary work. The employer then presented testimony from a vocational expert who conducted an earning power assessment and identified five jobs that

fell within the claimant’s sedentary restriction and provided an average weekly wage of $347.41.

The claimant presented medical testimony indicating claimant could not perform the five jobs identified by the vocational expert. The claimant also testified that she applied for all five jobs and was not hired.

The Workers’ Compensation Judge found the employer’s medical and vocational experts to be credible, but also found the claimant to have acted in “good faith” in following up on the job referrals and that none of the jobs resulted in an offer of employment. For these reasons, the judge found in favor of the claimant and denied the employer’s Modification Petition.

On appeal, the Commonwealth Court noted the 1996 Amendments lowered the employer’s burden of proof. The Amendments allow an employer to obtain a reduction of wage benefits on evidence of earning power proved through expert testimony, rather than evidence that the claimant obtained or could have obtained employment in the absence of bad faith conduct.

The Court went on to state: “Today we are ... asked to determine whether a job not only exists, but is available to claimant for the purposes of Section 306(a) of the Act when she applies for each individual job contained in a labor market survey and does not receive an offer of employment where the employer’s expert testimony is credited that the jobs were open and available at the time he identified the employment opportunities. We determine that Employer is not precluded from obtaining a modification of benefits where, as here, claimant pursued the jobs contained in the labor market survey weeks after they were identified as

open and available...”

In ConclusionPreviously, a claimant could challenge or refute the findings of an Earning Power Assessment by contacting each employer identified in the assessment, applying for the job, then subsequently testifying that the job was not available because he or she did not receive an offer of employment. In today’s job market, entry level positions can become available and filled within a very short period of time.

The Court’s recent decision recognizes it is simply unrealistic to presume that all jobs identified in an Earning Power Assessment as open and available on a given date will remain open and available nearly a month or more later when the claimant receives the report from the vocational expert. It is now clear that the employer’s burden is only to show availability at the time of the vocational expert assessment.

For more information on workers’ compensation claims, please contact John W. Draskovic at 814/870-7653 or [email protected].

Legal BriefDecision Clarifies Employer’s Burden in Modifying Workers’ Comp Wage Loss Benefits

EDITORIAL > by John W. Draskovic

John W. Draskovic is a senior partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he is chairman of the firm’s Workers’ Compensation Group, and a member of the firm’s Litigation and Labor Groups. He practices exclusively in the areas of civil litigation and workers’ compensation. His litigation practice consists primarily of defending insurance carriers and businesses from all variety of claims. His employment practice includes represent-ing carriers and self-insured employers in workers’ com-pensation and other employment- related claims.


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Robert Power, CPA, CVA, ABV, CSMC, CDBV, CFF, is a partner at McGill, Power, Bell & Associates, LLP, a regional certified public accounting firm with offices in Erie and Meadville. A major component of his practice is devoted to the manufacturing sector, to which he provides tax and consulting services, including information systems, activity based costing, succession planning and research and experimentation tax credit utilization. He is a certified specialist in management consulting (CSMC) and specializes in business valuations and litigation support services.

Changes in the R&E Tax Credit With past tax regulatory changes, the Research and Experimentation (R&E) Tax Credit was significantly expanded and enhanced. Consequently, the number of eligible taxpayers and the amount of credit claimed by taxpayers has increased considerably. Because of these increases, the Internal Revenue Service (IRS) identified this area as a high priority with increased examinations and oversight, and therefore has led to a greater number of tax case rulings; four decisions already have been issued in 2009 and 2010. The good news is that these recent cases have resulted in favorable findings for the taxpayer and provide insight in the proper application of these new rules.

Custom/Contract ManufacturingOne case in particular is good news for the custom or contract manufacturing segment in northwestern Pennsylvania. TG Missouri v. Commissioner is a Tax Court case (2009) dealing with a plastic injection molding manufacturer that supplies the automotive industry. This taxpayer develops and uses molds (tooling) to manufacture automotive parts for its customers. The entity also incurs additional design and engineering costs to modify molds produced by outside suppliers. As long as these molds are customer owned, the wage costs associated with the development of these molds qualify for the R&E Tax Credit. The court determined that amounts paid to outside suppliers for acquired molds also qualify for the R&E Tax Credit as a supply cost. Therefore, TG Missouri is only paid for the mold when it produces a sample part acceptable to the customer – one of the factors necessary for qualification.

Issues Addressed in Other Cases:Business Component Development of a “business component” can qualify for the R&E Tax Credit. Both the development of a product and the development of a process to produce a product can qualify as a “business component.” In TG Missouri mentioned above, the mold would be the “product,”

and the process to produce or build the mold would be the “process.”

Capability, Method or Design One of the requirements to qualify for the R&E Tax Credit is that there must be uncertainty in either: the capability, method or design of the business component. In TG Missouri, the capability or the method used in developing the mold or its production process wouldn’t fall into this category. The design at inception, however, will almost always be different than the final design of the business component.

The Union Carbide Corporation v. Commissioner case (2009) provides that only uncertain design is necessary for qualification. Union Carbide had previously developed processes similar to the new process currently being developed. The IRS maintained, and the court agreed, that there was little doubt that the company would be successful with the development of this new process. The court, however, held that this development activity qualified because the final design was not known at inception.

Documentation In recent cases, the IRS has challenged the taxpayer’s position based on inadequate documentation. In some instances, the IRS has insisted on contemporaneous recordkeeping. U.S. v. McFerrin (a Fifth Circuit, U.S. Court of Appeals case (issued in 2009) cites the longstanding rule of Cohan v. Commissioner (a 1930 case) and states that if a qualified activity occurred, the court should estimate these expenses looking to testimony and other evidence, including the institutional knowledge of the company’s employees. Union Carbide and Trinity Industries, Inc. v. U.S. (a 2010 case) also cite the Cohan Rule as an acceptable approach in determining the cost or expense in the absence of specific documentation.

Qualifying Activities In the previously discussed Trinity Industries, a shipbuilder claimed the R&E Tax Credit for the design and development

of special order ships. The development involved the consideration of combining subassemblies as part of the ship design. The government’s challenge was that this consideration was “nothing more than ordering off of a menu – pick a hull from column A, a propulsion system from column B, an HVAC from C, etc.” The court responded that this analogy greatly oversimplifies the approach and indicated that “determining which configuration out of the universe available can … involve a significant research effort.” The court also stated that the interaction between systems can be “complex and nonintuitive.” The result of this case appears to be more support for the qualification of the custom/contract manufacturer.

Likewise, as these recent cases demonstrate, if the taxpayer is diligent in determining and developing support for its qualifying activities, the result should be a valuable tax credit. For more information, please contact Robert Power at McGill, Power, Bell & Associates at 814/453-6594 or [email protected].

EDITORIAL > by Robert Power, CPA, CVA, ABV, CSMC, CDBV, CFF

R&E Tax Credit: Recent Rulings in Favor of Taxpayer

Financial Adviser


Is anything made in America anymore? The answer to that question is a resounding yes. Each year, U.S. manufacturers — including the thousands of manufacturing companies across Pennsylvania — produce hundreds of billions of dollars worth of goods, everything from GE locomotives and Heinz ketchup to Crayola crayons and Hershey candy bars. According to the National Association of Manufacturers (NAM), the United States continues to stand strong as the No. 1 manufacturing economy in the world, producing 21 percent of global manufacturing wealth. These manufacturers also perform half of all research and development in the nation, driving more innovation than any other sector. If that isn’t enough, research shows that manufacturing supports an estimated 18.6 million jobs in the United States — about one in six private sector jobs. Nearly 12 million Americans are directly employed in the manufacturing sector, earning 22 percent more in wages and bene!ts than the rest of the work force. On the state level, statistics from the Pennsylvania Manufacturers Association show Pennsylvania manufacturing companies sustain the largest and most important sector of the state’s economy, generating 13.6 percent of our Gross Domestic Product. These manufacturing !rms add $75 billion of wealth every year and directly employ more than 560,000 Pennsylvanians. In fact, all across the Keystone State, you can !nd numerous examples of these companies — companies like Custom Engineering, Eriez, Howard Industries, and Ridg-U-Rak, Inc., to Industrial Sales & Mfg., Sharpsville Container,

Meadow Brook Dairy, Sunburst Electronics, Great Lakes Case & Cabinet Co., Inc. and thousands of others, including Woolrich, LORD Corp., Ainsworth Pet Nutrition, Zippo Manufacturing and Mack Trucks — hard at work creating, innovating and producing parts, processes and products that are “Made in Pa.”

“Pennsylvania has a strong manufacturing heritage that continues today across various industries,” notes Roger

Sheets, vice president – Human Resources for Woolrich Inc., headquartered in Woolrich, a 30-minute drive from Williamsport. “Penn-sylvanians are proud of their hard work and what they produce and Woolrich is proud to be a part of this legacy having manufactured products in Pennsylvania for almost 200 years. We have employees whose parents and grandparents have worked at Woolrich. We take great pride in the products we produce and support-ing the surrounding communities by providing good jobs, bene!ts, and training in a rewarding work environment.”According to the company, Woolrich has produced high-quality, outdoor apparel since 1830 and has the longest continuously operating woolen mill in the United States. The tradition began with founder John Rich selling workwear to lumberjacks and sawmill workers out of a mule cart. Since then, Woolrich has grown into an internationally recognized outdoor brand with a custom collection of apparel, accessories and home furnishings.To stay competitive, however, Woolrich is constantly on the lookout for new opportunities in the marketplace. This past year, the company hired two sales agents to sell its Mill wool fabrics

throughout Europe and, on the apparel side, has a multi-label strategy that allows it to cater to very distinct market segments on a global basis.Innovation too, according to the company, is a necessity to survive. “We are continually researching new fabrics and fabrication to improve our products and provide outdoor enthusiasts with the right products to !t their lifestyle,” adds Sheets.Woolrich recently completed a substantial addition to its main distribution center including a new three-story pick module and state-of-the-art paperless order picking computer system called “Pick to Light.” The company also purchased a new Web-based HR/Payroll system that will enable them to automate manual processes, reduce administrative costs and provide employees and managers with online access to employment information and perform various types of transactions. But, like many other manufacturers, one of the most signi!cant challenges for Woolrich is its aging work force. Hiring replacements for highly skilled workers who will be retiring soon is going to be a challenge, as well as rising costs, expansion of government regulations, and competition from foreign suppliers of woven fabric. “We are very concerned about the expansion of stringent new government regulations and legislation a"ecting all aspects of our business,” notes Sheets. “We are particularly concerned about the impact of the health-care reform act on our ability to manage costs, make plan design changes, and continue o"ering a choice of plans that best meet our employees’ needs. Government as a whole needs to be less intrusive and more pro-business.”The importance of manufacturing cannot be overstated. “Although the domestic man-ufacturing sector has been in steady decline for many years the United States,” continues Sheets, “there is no other sector in our country that contributes more to the growth of our economy than manufacturing. In spite of pressure from global competition, manufacturing in the United States is and will always be an important part of our free market system.”Driving Innovation

With annual sales of ap-proximately $700 million, net exports of more than $100 million in goods annually,

and more than 2,500 employees worldwide, LORD Corp. has manufacturing operations in nine countries and o#ces in more than 15 major business centers. While headquartered in Cary, North Carolina, its large presence in Pennsylvania includes a major o#ce/technical center in Erie, a manufacturing plant in Erie, and two plants in Crawford County — Cambridge Springs and Saegertown.The privately-held company founded in 1924 designs, manufactures and markets mechanical devices and electromechanical systems to control vibration, motion and noise; formulates, produces and sells general purpose and specialty adhesives, coatings and electronic

MADE IN PAManufacturing continues to thrive asmajor economic driver in Keystone StateStill headquartered in the little village of Woolrich in central Pennsylvania, Woolrich, Inc. has seen its business grow worldwide.

12 < www.mbausa.org < October 2010

materials; and develops products and systems utilizing magnetically responsive technologies, for the aerospace, automotive, electronics industries, and a wide range of industrial sectors (such as construction, agriculture, recreational and energy).“At LORD Corporation, innovation ensures we stay competitive,” notes Joe Marotta, president of Americas for LORD. “We have always been committed to designing innovative solutions, which translates into the products we manufacture. We work hard to build and protect intellectual property in design and process, including the necessary commitment to excellence in manufacturing that shows in steady productivity gains delivered by our dedicated and skilled work force.”Research and development (R&D) is very important to LORD, and it has been a hallmark of the company since its founding 86 years ago. As a percent of sales, LORD spends two to three times what its industry peers spend on R&D. “LORD is always working on new technologies and product solutions for the markets we serve,” says Marotta. “We innovate based on market and customer need, including for emerging industries, such as solar and wind energy.”According to Marotta, one example of how LORD Corporation’s dedication to new products and its facilities come together is with the expansion of the company’s manufacturing capabilities to produce magneto-rheological (MR) Steer-by-Wire Tactile Feedback Device brakes in its Cambridge Springs plant. LORD Corporation is the world’s leading supplier of commercial MR materials, devices and systems. This is a good

example of how innovation and commitment to R&D has led to production and job growth in one of the company’s Pennsylvania plants. Yet, one of LORD Corporation’s biggest concerns is ensuring that manufacturing !rms can continue to remain competitive. “The white paper issued by the NAM in June, entitled ‘Manufacturing Strategy for Jobs and a Competitive America,’ (www.nam.org) speaks to the concerns of American industry and o"ers concrete recommendations for a better future,” notes Marotta. “Unfortunately, manufacturing seems to get ‘talked down’ in America. Although we have a strong service economy, we have always had, and must continue to have, a strong manufacturing base in the United States.” Committed to Investment

Striving for manufacturing excellence has been the cornerstone of Zippo Manu-

facturing Company, the maker of Zippo windproof lighters, since it was founded in 1932 by George G. Blaisdell, a Bradford businessman who was looking for an attractive lighter that would work even in adverse conditions. During World War II, Zippo suspended distribution to civilians and funneled all Zippo windproof lighter production to U.S. military personnel. According to Peggy Errera, manager of Corporate Communications for Zippo, “The fact that millions of American military personnel carried the lighter into battle was a signi!cant catalyst in establishing Zippo as an icon of America throughout the world.”

In the 1970s and ‘80s, the company greatly expanded its overseas sales and marketing e"orts. As a result, Zippo lighters are now sold in more than 150 countries worldwide. Still based in Bradford, Zippo is owned and operated by George B. Duke, grandson of the founder.The company employs 546 part-time and full-time workers, but like many manufacturers has and continues to face the challenges of being able to !nd of highly skilled blue collar workers with technical training.“Zippo has a continuing commitment to invest in our employees in training, technology and facilities,” notes Errera. “(Our) PA Wednet training grant has made a big impact on enabling Zippo to expand its training of employees.”Key initiatives, such as increased e#ciency, a cross-trained work force and technological advances have helped the operation stay com-petitive and innovative in the global market-place. Also mission critical are diversi!cation and acquisitions.Case and point: In February 2010, Zippo purchased substantially all of the assets of Ronson Consumer Products Corporation, Woodbridge, New Jersey, and Ronson Corpor-ation of Canada Ltd.; and certain related assets of Ronson Corporation. The entire Ronson butane and liquid fuel operation was moved to a new facility in Bradford. Zippo also recently introduced the Outdoor Line, a complete range of $ame and heat products geared to hunters, campers, and those who need a $ame outdoors. “Research and development is highly important to the success of our company,” notes Errera. “The design of our iconic windproof pocket lighter has changed very little since 1932, but our methods of customizing the lighter have evolved to some of the most cutting-edge technologies in the business. Di"erent !nishes, color-imaging strategies, and proprietary engraving techniques keep our $agship product new and competitive in the domestic and international markets.” >

Bradford, Pennsylvania, is home to Zippo Manufacturing and the commitment to the craft and quality synonymous with “Made in America.”

With a dedicated rotor hub-manufacturing cell in Erie, Pennsylvania, LORD Corp. has the engineering capability and expertise to deliver custom major sub assembly solutions such as pitch link assemblies, rod end assemblies, rotor hub subcomponents and tail rotor hubs.


A Strong ReputationFounded in 1900, Mack Trucks, Inc. is one of North America’s largest producers of Class 8 heavy-duty trucks, well known

for its Bulldog trademark. According to spokesman John Walsh, the company earned its nickname in 1917, during World War I, when the British government purchased the Mack AC model to supply its frontlines with troops, food and equipment. British soldiers dubbed the truck, the “Bulldog Mack.” Its pugnacious, blunt-nosed hood, coupled with its incredible durability, reminded the soldiers of the tenacious qualities of their country’s mascot, the British Bulldog.Today, Mack trucks are sold and serviced in more than 45 countries through a worldwide network of sales, parts and service centers. The company, based in Greensboro, North Carolina, currently employs approximately 3,500 people around the world, with a huge share — roughly 1,000 strong — working in Pennsylvania’s Lehigh Valley region.Mack o"ers a full line of heavy-duty trucks for on-highway and vocational use — manufactured at Macungie Assembly Operations, a 1-million-square-foot plant just outside of Allentown, Pennsylvania. The company’s REMACK® re-manufacturing center in Middletown, Penn-sylvania, receives components that have ex-ceeded their initial life cycle and restores them to their original performance speci!cations to begin another life cycle.“Mack trucks have been severely tested on some of history’s most grueling construction sites,

helping to build the Hoover Dam, Rockefeller Center, the St. Lawrence Seaway and the Lincoln Tunnel. The phrase ‘Built Like a Mack Truck’ — shorthand for strength and power — has become part of the American language,” notes Walsh. “We’re proud to be part of the only heavy-duty truck manufacturing group who can say that every truck we sell in America is built in America.”

Focused on the FutureOne family owned manufacturing company that is now on its !fth generation is Ainsworth

Pet Nutrition, the parent company of DAD’s Pet Care, Ainsworth Specialty Brands and Ainsworth Custom, headquartered in Meadville, Pennsylvania.Founded in 1933 by George Ainsworth Lang, Ainsworth Pet Nutrition has since grown into a pet food manufacturer of not only dry pet food, but soft-moist pet food and pet treats with distribution of more than 500 of its own branded, private label products, and co-manufactured products throughout 48 states. To date, the company has approximately 550 employees and more than tripled its sales revenue over the last decade.“While technology and services businesses are a large component of our state’s economy, I believe manufacturing remains a critical element in the mix,” states Faith Radcli"e, vice president Brand Marketing and Services. “We’ve seen many manufacturing businesses close and downsize in

recent years. Fortunately, Ainsworth Pet Nutrition has actually been growing and hiring additional employees despite the economic downturn.... Our people, our family members, will continue to keep this company innovative, growing and relevant in the future. Our company’s commitment to hiring the best of the best has been the key to our success.”The company has made some investments and acquisitions throughout the past few years. Most notable is its acquisition of ARKAT Animal Nutrition in Dumas, Arkansas. In June, Ainsworth Pet Nutrition announced plans to increase its work force in Dumas by 75 percent and is currently making a $10-million investment to add capacity and capability enhancements to that facility. In 2007, the company dramatically improved its manufacturing capabilities in its Meadville plant through an investment of about $14 million for equipment and plant design improvements. “Manufacturing remains a vital component of our economy,” adds Radcli"e. “Ainsworth Pet Nutrition is committed to increasing jobs and making more investments to grow our business. Our success will directly impact many other businesses in the state as well as the lives of our employees. We’re excited about our future....”

The Big Picture of PA Manufacturing573,600

10.2 percent

$66,632$54,793

$11,840 (22 percent)

$75.5 billion13.6 percent

15,43092 percent

258,200

- chemical products (12.7 percent); - computer and electronic products (11.7 percent); - food, beverage and tobacco products (11.4 percent); - petroleum and coal products (8.9 percent); - fabricated metal products (8.1 percent); - machinery (7.4 percent); - aerospace and other transportation equipment (5.6 percent); - motor vehicles (5.3 percent); - medical equipment and miscellaneous manufacturing (4.7 percent); - plastic and rubber products (4 percent).

— Sources: 2008 and 2009 data from NAM, U.S. Departments of Labor and Commerce, and the United Nations

The Macungie Assembly Operations in Macungie, Pennsylvania, located in the Lehigh Valley, produces the Mack line of vocational, construction and highway trucks.

Ainsworth Pet Nutrition, headquartered in Meadville in northwest Pennsylvania, manufactures a complete line of dog and cat foods. The company also is dedicated to buying ingredients from local farmers in order to support its neighbors, while keeping transportation and retail costs low.


MADE

IN PA

LAKE ERIE PORTABLE SCREENERS 9843 Martin Ave. Box 408Lake City, PA 16423Phone: 888/448-2486 or 814/774-7080Web site: www.pitbullscreeners.comLEPS manufactures the highest quality, most versatile portable screeners available.

SEPCO!ERIE1221 Robison Road WestErie, PA 16509Phone: 814/864-0311Web site: www.sepco-erie.comSpecializes in tube cutting and end working, and banjo !ttings for diesel engines.

SHARPSVILLE CONTAINER600 Main StreetSharpsville, PA 16510Phone: 724/962-1100Web site: www.sharpsvillecontainer.comSupplier of high-quality stainless steel, carbon and exotic alloy container solutions.

TECH MOLDED PLASTICS INC.1045 French St.Meadville, PA 16335Phone: 814/724-8222Web site: www.ttmp.comSpecializes in high-performance injection molding of engineered resins for complex applications.

TONNARD MANUFACTURING715 Spring StreetCorry, PA 16407Phone: 814/664-7794Web site: www.tonnard.comShort-run metal stamping manufacturer. Highly automated for low volume.

THE WARREN COMPANY2201 Loveland AvenueErie, PA 16506Phone: 814/838-8681Web site: www.thewarrencompany.comMetals service center and custom fabricator.

ZEYON, INC. 3408 McClelland AvenueErie, PA 16510Phone: 814/899-3311Web site: www.zeyon.comManufacturer of custom ASME pressure vessels, tanks, piping, reactors for more than 40 years.

BUCKS FABRICATING3547 Perry HighwayHadley, PAPhone: 724/253-3322Web site: www.bucksfab.comSpecializes in steel and plastic roll-o" containers.

CORRY CONTRACT INC.21 Maple AvenueCorry, PA 16407Phone: 814/665-8221Web site: www.corrycontract.comContracted sheet metal fabricator serving the metal furniture, transportation and electronics industries.

THE ELECTRIC MATERIALS COMPANY 50 S. Washington Street North East, PA 16428 Phone: 814/725-9621Web site: www.elecmat.com Manufactures copper products, including custom extrusions, castings, forgings, fabricated components and commutators.

ERIE PRESS SYSTEMS1253 West 12th Street, PO Box 4061Erie, PA 16512-4061Phone: 814/455-3941Web site: www.eriepress.comManufactures custom hydraulic and mechanical press-es for forging, extrusion, stretch forming, compaction and metal forming.

FISHER & LUDLOW " A NUCOR COMPANY Saegertown, PAPhone: 814/763-5914Web sites: www.nucor.com and www.!sherludlow.comSteel grating manufacturer and Department of Labor Employer of the Year 2010.

G.W. BECKER, INC.2600 Kirila Blvd.Hermitage, PA 16148Phone: 724/983-1000Web site: www.gwbcrane.comOverhead crane manufacturer with full-service, single- source, supplier capabiities.

M A N U F A C T U R E R S H O W C A S EPennsylvania’s manufacturers sustain the largest and most important sector of Pennsylvania’s economy, adding $75 billion of wealth every year and directly employing more than 560,000 Pennsylvanians. We’re proud to showcase the importance of Pennsylvania manufacturing and the products made right here in the Keystone State in this special section of the Business Magazine.

S P E C I A L S E C T I O N October 2010 > www.mbausa.org > 15

The

Pla

stek

Gro

up

The Plastek Group is a Global Injection Mold Builder, Molder, and Assembler founded and headquartered in Erie, Pennsylvania. The company has operated continuously since 1956 and has a client list comprised mostly of Fortune 50 companies. These companies include Revlon, Avon, Energizer, Unilever, Procter & Gamble, Tetra Pak and many others. Major Industries served include Personal Care, Cosmetics, Home Care, Laundry Care, Food & Bever-age, and Pharmaceutical Packaging. Major products include cosmetic jars, deodorant stick packages, food & beverage caps, shampoo and conditioner caps, eye dropper bottles and caps, safety razor parts, baby wipes packages, laundry caps, and many other items.

With state-of-the-art manufacturing opera-

and Indaiatuba, Brazil, Plastek is a global supplier to many of its customers. To remain competitive and keep the com-

investments in people and training, automa-tion, and other leading-edge technologies.

and overseas competition, keep the jobs we have, and create more.Throughout our history, Plastek has under-stood that the key to our success lies in our hard-working and dedicated work force. Our company culture and work ethic is common in all divisions, worldwide, and remains extremely focused on satisfying our custom-ers. We know they have a choice and we want them to make Plastek their #1 choice.

CompanyPROFILE

The Plastek Group

Erie, PA 16506

Phone: 814/878-4400

Web site www.plastekgroup.com

E-mail: [email protected]

The Plastek Group

High Quality Fabricationplus

Precision Machiningfrom ONE Source

Handle Components up to 70 tonsNearly 200,000 sq. ft. of Manufacturing SpaceX-Ray Quality Welding ProcessSpecialty Equipment

Engineering – Design – ManufacturerLarge Scale Machining

Precision MachiningHeated Platens

Engineering Co. ISO 9001:2008ASME U, S and R

Call 800-766-8504 or visitCustomEng.com Lamjen.com VenangoMachine.com

CustomAd:Layout 1 9/15/10 11:56 AM Page 1

Industrial Sales & Mfg., Inc.

2609 West 12th Street

Erie, PA 16505

Phone:

814/833-9876

Fax:

814/838-6250

Website:

www.ismerie.com

If it is made of Metal, we can do all you need to it:

We Machine It… Punch It… Laser It… Saw It…

Bend It… Form it… Fab It… Mill It… Drill It…

Weld It… Paint It… Assemble It…

Then, We Finish It And Ship It…

Founded:

1967

President/CEO:

James Rutkowski Sr.

E-mail:

[email protected]

Facility:

120,000 square feet

Certification:

ISO-9001:2008

Industrial Sales & Manufacturing, Inc.

Quality Machining, Fabrication and Assembly Since 1967

All under one roof!

Ridg-U-Rak, Inc.

Company

PROFILERidg-U-Rak, Inc.

North East, PA 16509

Phone:814/725-8751

Fax:814/725-5659

E-mail:[email protected]

Web Site:www.ridgurak.com

Number of Employees:350

Date Founded:1942

Company Description:Ridg-U-Rak has a 68-year history of integrity in supplying storage rack systems. As a designer, manu-facturer and integrator of Material

the company provides the latest in storage technology throughout the

of the world.

Under President and CEO, John B.

attained a prominent industry role in the many engineering advances in rack safety and design over the years. In April 2008, Ridg-U-Rak’s

-ors for “Excellence for Innovation” in the earthquake mitigation category at the National Earthquake Conference

Rak received the award for develop-ing a product that would reduce the risk of product loss, damage and personal injury around storage rack installations during seismic events.

With more than 350 employees and 200,000 square feet of manufactur-ing space, the company utilizes auto-mated, computer-controlled produc-tion lines and is capable of producing over 2 million pounds of rack-storage

-ishing lines comply with environmen-tal guidelines, and throughout the manufacturing process, strict quality policies are followed to ensure a reli-

Ridg-U-Rak has long been engaged in reducing its environmental imprint. From recycling programs to major transformations in manufacturing processes, the corporate philosophy is to do what is necessary to meet 21st century sustainability expecta-tions.

Markets Served:A company of many products and capabilities, Ridg-U-Rak provides

Drive-In Racks, Push-Back Racks,

Racks and many specialty products. A nationwide network of more than 125 professional material-handling distributorships is complemented by the company’s regional sales managers, who work with customers and distributors to bring the factory

installation services with factory supervision.

Rack Manufacturers Insti-

Awarded to manufacturers who are committed to the principles of continuous improvement in product design and application,

2006 Norman L. Cahners Presented by Material

Handling Education Foundation, Inc., Ridg-U-Rak was recog-nized for ongoing dedication to its scholarship program since 1989, and as an outstanding ex-ample of commitment and return to the Industry.2008 Excellence for Innova-

The National Earth-quake Conference, chaired by four earthquake and emergency consortia groups, presented Ridg-U-Rak this award for developing a product that would reduce the risk of product loss, damage and personal injury around storage rack installations during seismic events.


Your First Choice for Contract Manufacturing In order to implement a successful electronic product

manufacturing strategy, you must demand excellence from your entire team. Your contract manufacturing partner is a vital

member of your operations team, so when choosing a manufacturer for your next product release, you cannot afford to settle for anything less

than the very best.

Western PA’s specialist for PCBA and system level electronic manufacturing services.

ISO 9001, AS9100, and ISO 13485 Certified Sunburst Electronics, Inc. 420 E. Bayfront Pkwy, Erie, PA 16507 (814) 461-9120

Recover 50% of Your Floor Space

Being Organized = Increased Productivity

Act now for a free space consultation.

888-470-9664 www.acss2000.com

Equipto – Made in PA

Eri

ez

At Eriez, we believe innovation drives growth. Innovative products, expanding worldwide sales, and development of new markets fuels our continued progress. These positive trends have lead to local plant expansions, acquisitions, new equip-ment purchases and a growing work force that includes advanced engineering and

Pennsylvania.Just this month, the company completed the acquisition of HydroFlow Filtration and the Fluid Recycling group. This acquisition posi-tions Eriez as the leader in comprehensive

serving the metalworking industry. These in-

equipment maximize coolant effectiveness and longevity improving productivity and reducing disposal costs.In addition to metalworking, Eriez’ equip-ment is used in a variety of applications in process industries such as food, packaging, mining, recycling, plastics, pharmaceutical and more. Core products include vibra-tory feeders and conveyors to move and meter bulk materials, magnetic separators

designed to remove damaging tramp metals

metal detectors and X-Ray inspection sys-tems to ensure product integrity.In mining, Eriez’ magnetic equipment sepa-rates the valuable iron ore from the rest of the mined materials and in scrap metal processing plants the equipment sorts various metals to improve their value.Eriez is committed to remaining the worldwide leader in advanced technology for Magnetic, Vibratory and Inspection Applications.

CompanyPROFILE

Eriez 2200 Asbury Road Erie, PA 16514-0608

Phone: 814-835-6000 1-888-300-ERIEZ (3743)

Web site: www.eriez.com

E-mail: [email protected]

Eriez Continues Growth Through Innovation and Acquisition

®

Howard Industries

Company

PROFILE

which exclusively markets and provides

an increasing variety of target industries.

Industries was honored as an Inc. 5000 company. This recognition was a tribute to the company’s growth during both years.

Pennsylvania Department of General for

signage. Participation in this program allows state entities, municipalities and

without time intensive research and

University (13 satellite campuses in

Rock University, Edinboro University, Hamot Medical Center and satellite facilities, Geisinger Healthcare Facilities,

providing solar-powered LED illuminated

University of Hawaii Community College locations throughout the islands.

introduced the HID Interior Signage Systemavailable, versatile system for interior

information, the experts in exterior signage applied like-minded design and production concepts to creating a cost-effective interior sign system. The new HID interior system offers functional versatility, contemporary modular appeal, stylish design accents, user-serviceable (laser printed paper) message inserts, and easy to install mounting options … all at a price everyone can appreciate!

6400 Howard Drive Fairview, Pennsylvania 16415Web site: www.howardindustries.com

Phone Numbers: 800/458-0591 814/833-7000E-mail: [email protected] Founded: 1928

Company Description:Howard Industries is a leading national manufacturer/wholesaler of Architectural

quality craftsmanship, unparalleled delivery and prompt responsiveness, Howard Industries is considered to be the “Cadillac” of the sign industry.Howard Industries currently occupies a 50,000-square-foot, technologically

Township. Here, the 48-plus person staff designs and manufactures both standard and custom-designed modular signage systems, including a variety of extruded-

monument signs with thousands of design

its laurels, Howard Industries leads the way in adopting new strategies and cutting-edge sign fabricating technologies. Its manufacturing process is under a continuous improvement mandate, and the company is always looking to new markets.

1920s, Howard Industries has a company history rich in growth, change and success.

carve out an aggressive, forward-thinking business plan as a manufacturer and innovative sign industry leader.

the PRIME Sign Program to meet the needs of institutional and corporate clients that require complete sign project management. Project managers and design personnel are teamed to provide industry-leading campus master planning, sign audits, site surveys, architectural signage solutions, permit acquisition, and installation management. Regional clients

Mercyhurst College, Edinboro University, Hamot Medical Center and satellite facilities,

facilities, LECOM Wellness and Millcreek Community Hospital, Geisinger Healthcare Facilities, and First National Bank corporate headquarters and branches, to name a few.

recognized the need to further streamline production and offer more focused service to three distinctive customer groups. From

:

manufacture and the further development


Industrial Sales & Manufacturing, Inc.

Our Clients, including these companies showcased in this issue, are

world class, and we strive to maintain the same level of excellence.

Property, Liability and Workers’ Compensation Insurance Agents

The only insurance agent in the country to earn the Quality Award by the leading national association of corporate risk managers.

123 West Ninth Street, Erie, PA 16501 www.imcerie.com 814-‐452-‐3200 [email protected]

Assisting our clients in…P I Managing risk

552 West 12th Street Erie, PA 16501 Phone: 814-456-7053 Fax: 814-459-3297 www.galvanizeit.com

Our customers make the products.

We FINISH them.American Tinning & Galvanizing Company (ATG) specializes in the corrosion control of metal, steel and aluminum by providing “fi nishing” services. ATG was founded in Erie, Pennsylvania in 1931 by Fred Carlson and is a third generation, family-owned business, currently managed by Jacqueline “Robin” Scheppner. Starting as a tinning business with one employee, ATG has expanded its metal fi nishing capabilities to more than 15 different specialized processes. ATG has validated its quality systems by earning the prestigious NADCAP aerospace accreditation for six consecutive years, and has the honor of being one of the select chemical suppliers to earn the “with merit” distinction for our chemical processing and quality systems. The company also has received accreditation from many successful businesses such as Bell Helicopter, Lord Manufacturing and Sierra Nevada Corporation.

ATG doesn’t stop at providing quality metal fi nishing to more than 400 customers throughout Pennsylvania and the U.S.—we also strive to create long-term benefi cial relationships by continually seeking new product lines and capabilities to accommodate our customers’ needs. We want to be your “one stop shop” for fi nishing your products. ATG employs more than 60 employees and occupies 72,000 square feet of production, fabrication and warehouse space on the same corner it did more than 79 years ago.

Carlson Erie Corporation was founded as a plating equipment supplier by the Carlson Family in 1955, and merged with ATG in 2004. The company specializes in custom fabricated plating fi xtures, racks, and metal and plastic tanks.

Menu of Metal Finishing ProcessesArchitectural Bronze Anodizing Chromic Acid (MIL-A-8625 type I) Sulfuric Acid Anodizing (MIL-A-8625 type II) Chromate Conversion Coatings (MIL-C-5541) Cadmium Plating (QQP-416) Zinc Plating (ASTM-B633) Hot Dip GalvanizingPickling & Oil Services (GE Spec. P4D-EP9 & EP8)Electroless Nickel Plating Nickel Plating (QQ-N-290) Copper Plating Zinc Phosphate Black Oxide Finishing

Recreate LOGO

Our customers include:

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.

Insurance Postings from Patty

HR ConnectionMEDICAL INSURANCE COSTS RISE FOR MANUFACTURERSLike most employers, manufacturers across the country are seeing their medical costs skyrocket. The newly released 2010 Compensation Data Manufacturing Survey results show manufacturing companies had an average premium increase of 11 percent. More than 80 percent of survey respondents report paying more than $7,200 annually for an employee plus family plan.To reduce costs, manufacturing companies employed a variety of methods. Increasing the employee portion of the premium was most prevalent at 56.7 percent, with an increase in deductible levels following at 46.9 percent.

MANUFACTURERS FIND VALUE IN TIME-OFF PROGRAMSWith the U.S. economy on shaky ground, manufacturing companies across the country are searching for alternative ways to reward their employees, such as time-off programs.

Results of the 2010 Compensation Data Manufacturing Survey show that exempt employees with less than one year of service earn an average of 3.7 vacation days, while non-exempt employees earn three days. More than 80 percent of the manufacturing companies offering paid vacation to employees use years of service to determine

the number of days an employee can accrue.“In retaining top employees,” researchers suggest, “many organizations are finding enhancements to time-off programs may be a viable alternative to granting pay increases.”

Assistant Secretary of Labor Phyllis C. Borzi has issued the following statement regarding the current status of the Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy: The American Recovery and Reinvestment Act (ARRA) “provides a COBRA premium reduction for eligible individuals who are involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare. Unless the sunset date is extended by Congress, individuals who lose their jobs after May 31, 2010 will not be eligible for the subsidy.” For more information, contact me at [email protected], 800/815-2660 or 814/833-3200.

Complexity. Growth.Cutting EdgeTechnology.

Erie Plant1944 Wager RoadErie, PA 16509 www.atpteam.com

CorporateHeadquarters7626 Klier DriveFairview, PA 16415

Since 1984, over 1.0 billion precision

machined parts produced in northwest PA and still

counting�…


DEPARTMENTS > Contact: John Onorato

The goal of your compensation system should be simple – to attract, retain and motivate employees in a way that is easy to administer and that is legally compliant. But some things are easier said than done.While the economy was booming, firms had to worry about retaining employees. It was a seller’s market for labor, and the emphasis was on offering competitive wages and benefits so that you could keep a hold of employees.Today, the challenge is different: How do we use our compensation policies to motivate employees while keeping a lid on labor and benefit costs? One possible way to do so would be to link some aspect of compensation to performance.As research suggests, most employees look at different facets of their com-pensation differently. According to experts, employees view their benefits as an entitlement, their hourly wage as an

exchange for time given to the employer, and performance-based pay reward for a job well done.Because of the way compensation is viewed by the employee, most employers will never get increased performance because of an increased benefit. (Who gets up in the morning and says, “I am going to work harder today because I have dental coverage”?). Nor will you get increased performance because of an increase in the hourly rate. Generally speaking, a behavior-based incentive plan may be the best method for increasing performance of your workers. When instituting such a program, it is important that you base the incentives on activity that creates additional revenue. If the revenue is not generated, the incentive is not provided. This self-financing feature of the incentive program makes it good for either a down or a robust economy. In addition, you need to determine if the incentives should be individual, by

department, or be applied throughout the whole organization. The timing and the size of the incentive also must be determined as these have a tre-mendous bearing upon the success of the program. Finally, the incentive must be frequent enough so that individuals feel that they can achieve it, but not so frequent that they begin to feel a sense of entitlement. For more information, please contact me at 814/833-3200, 800/815-2660 or [email protected].

What’s the Best Way to Motivate Your Employees in a Down Economy?

Rose Bruno is a PHR-certified HR generalist at the Manufacturer & Business Association.

12 Port Access Rd. Erie, PA 16507 (814) 459-3797 www.McShaneWelding.com www.RockeSolid.com

Erie company, specializing in quality and service

in plate & miscellaneous structural steel

fabrications since 1974

Manufacturing and sales of quality metal products

since 1979

New product line dedicated to creating innovative

solutions for maritime military customers

www.McShaneMetalProducts.com Producing Innovative Solutions That Meet Customer Needs


Electronic Communication Services, Inc. Erie, PA 814-455-4181 800-837-5790 [email protected] www.ecsinc.us.com

“The Erie Water Works has utilized the services and equipment of Elec-tronic Communication Services since June 1996. Responses to inquiries are always rapid and reliable. We are pleased with the services we receive from Electronic Communication Services, and we would highly recom-mend this company.” Erie City Water Authority Erie, PA

Telephone Systems Digital / VOIP Wired / Wireless Data Networks Wired / Wireless Unified Communications Cabling Telephone / Data Est. 1989

Solutions you need with the service you want.

With 16 years experience, Ken Polk has helped businesses succeed across Erie, PA and Jamestown, NY.

Ken Polk, District Manager814-460-4570 | [email protected] ADP logo, ADP, and The business behind business are registered trademarks of ADP, Inc. ©2010 ADP, Inc.

Phone: 814.677.0716 FAX: 814.678.1301Email: [email protected]

2099 Hill City Road Seneca, PA 16346 U.S.A.www.matric.com

Electronic Manufacturing Assembly Services (PCB’s)

Electronic Contract Design Services

Aftermarket Services/Repair

Electromechanical Assembly (Box Build)

Cable Assembly and Cable Overmold

JTM

Foo

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nc.

JTM Foods, Inc. was established in 1986 as a family owned bakery located in Erie, Pennsylvania. The bakery began operations with one production line that made chocolate cupcakes. At the time, there were 18 employees. Today, however, JTM Foods employs more than 100 people and operates two production lines that manufacture a variety of different products.In 1990, JTM Foods, Inc. introduced

chocolate, lemon, berry and peach. With

sales from this item continued to grow. In 2000, JTM introduced a new innovative packaging concept, “the pie in the box,” which led to JTM Foods, Inc. investing millions of dollars to create a high-speed production line that is now fully automated. Currently, the company makes millions of snack pies a year.

JTM Foods, Inc. introduced the Marsh-mallow Crispy in 1994. The original recipe is still used, and truly “Tastes just like what Grandma used to make.” In 2006, JTM retooled this line and now makes three

chip and chocolate rainbow sparkles, and all are offered in a variety of sizes and packaging.JTM Foods, Inc. success comes from providing superior customer service and a great quality product at a valued price. The

Marshmallow Crispy’s™ under the widely recognized JJ’s® label, while also providing private label programs to some of the top

CompanyPROFILE

JTM Foods, Inc.

Erie, PA 16510

Phone: 814/899-0886

Web site www.jtmfoods.net

Employees: More than 100

Founded: 1986

JTM Foods, Inc.

Matthew R. Loeffler, CPA, CFP®, CTFA, CMA is the senior sales director for Bank of New York (BNY) Mellon Financial Corporation in Pennsylvania. He works with clients in helping with retirement planning, estate and income tax planning and business succession planning.

Given the market volatility of the last decade, many investors wonder if the historical average returns of the equity and bond markets will be experienced in the future. While economists and analysts evaluate the capital markets, opinions vary strongly as to what the future may bring. One common belief among many advisers is that capital market volatility is here to stay. In order to decrease investment portfolio volatility, some advisers are adopting new, alternative investment strategies to provide better diversification.

If we look back 10 years ago, portfolio diversification was mainly sought within the capital markets through style diversification, capitalization allocation, asset class diversification and global investing. Given the lack of correlation that was experienced through the various investment classes and styles previously noted, investing diversification was truly experienced through the end of the 20th century.

So what happened? Over the past decade, market volatility increased significantly and certain asset classes began to perform more in tandem with each other than historical experience has provided. For example, it was a long-held belief that one of the most significant diversification strategies for stocks was to allocate among domestic and international companies given the historical lack of correlation among international economies. As globalization has intertwined many economies, domestic and international stocks no longer have such a significant lack of correlation.

AlternativesSo, given the increase in investment volatility and uncertainty, what strategies have provided investors with reduced volatility and/or a competitive

total return? Consider the following:

1. Hedge Strategies — I know, the word “hedge” is absolute taboo to many investors. However, hedging can take on many different forms and, when used appropriately, certain strategies have proven to reduce volatility and/ or provide excess return, when compared to an appropriate benchmark, over the long term. Two popular strategies are: Long/ Short Hedge Funds for decreasing stock volatility, and Absolute Return Strategies to provide for portfolio stabilization in a rising interest rate environment.

2. Real Estate Investment Trusts — With the depreciation

in real estate values, many investors would have been happy to have no exposure in this area. However, from the context of seeking investments that have a lack of correlation to the capital markets, certain REITs have proven to accomplish that goal. Consider the following investment return comparison for the 10-year period ending June 30, 2010:

FTSE EFRA NAREIT Global Index produced an annual return of 8.81percent.

— The S&P 500 Index produced an annual return of -1.81 percent.

The complexity and diversification of REITs needs to be understood before investing in them. Global REITs can provide for diversification from several venues.

3. Commodities — I know this isn’t an original thought and the collapse of the capital markets from 2007 to 2009 brought commodity prices down as much

as stocks, if not more. However, with the current stabilization of the global economies, the future growth of foreign economies, commodities still can provide a good investment return for investors with decreased volatility. Investors can seek commodity linked returns through exchange traded funds or through a diversified portfolio of futures contracts. Since this can be a complicated area to understand how to invest, I strongly recommend you seek the advice of a competent investment professional.

While many investors have ex-perienced disappointment over the last 10 years with their investment en-deavors, bear in mind that the biggest decision one must make is how much to allocate between stocks and bonds. That decision alone provides 90 percent of an investor’s total return. The job of an investment adviser is to help you understand your investment return expectations and your tolerance for risk. From that point, it is the adviser’s job to make the strategic allocations to reduce volatility and provide excess market returns.

For more information, contact Matthew R. Loeffler at BNY Mellon at [email protected] or 814/874-5208.

In The BankEDITORIAL > by Matthew R. Loeffler, CPA, CFP®, CTFA, CMA

Explore Your Investment StrategiesDuring This Time of Volatility, Uncertainty


HOW CAN CONFIDENTIAL INFORMATION AND TRADE SECRETS BE PROTECTED?Employees will inevitably come and go. Employers should be prepared and have precautions in place to minimize the possibility of trade secrets and confidential information leaving with employees.

There are several ways an employer can “protect” information, to include:

“trade secrets”;

and treating the information confidentially; and

written employment agreements.

Employers should adopt specific policies and procedures in the hiring process, as routine business practices, and during the exit process to maximize protection.

WHAT IS A TRADE SECRET? A trade secret is information that derives independent economic value from not being generally known and is the subject of reasonable efforts to maintain its secrecy. Examples of trade secrets include:

the formula for Coca-Cola)

combination or ordering of known information)

sources, pricing methods, business plans, salary information)

Realize that if the information is generally known or not treated as a “secret,” it will not have the status of protected information.

WHAT IS CONFIDENTIAL INFORMATION? Information that is confidential but does

not meet the legal tests for protection as a trade secret may still have legal protection. Since the courts have used the following questions to determine if an employer took precautions to guarantee that certain information was protected, it would be wise for employers to adopt the following as an internal self-audit: 1. Were employees notified that

information was confidential? 2. Was access to the information

restricted by passwords or passcodes, alarms or the equivalent?

3. Was the location of the information restricted?

4. When access was granted, were there notices advising that the material was confidential?

5. Were there nondisclosure agreements negotiated with suppliers, vendors or other third parties to protect the confidentiality of the information?

Legal Q&A


What do bubble gum, bifocals, the Slinky, the lightning rod, soda pop, the Ferris wheel and the revolving door have in common? They were all invented in Pennsylvania. From Ben Franklin to the present, Pennsylvania has been blessed with its share of inventors and innovators. Fortunately, to protect Pennsylvania innovation and foster more of it, the General Assembly passed Pennsylvania’s version of the Uniform Trade Secrets Act in 2004. One of the most difficult questions in trade secrets law is whether a given piece of information is a “trade secret” that is entitled to legal protection. Generally speaking, if a given piece of information is readily known or can be easily obtained by others, it is not a trade secret. If it is not readily known or ascertainable, and if a business has done what it can to keep the information secret, then it generally is a trade secret.

Consider the Big Mac, first created in Pennsylvania by the way, and its special sauce, the ingredients of which are a “trade secret” of McDonald’s. The Act defines a “trade secret” as “information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that: 1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use”; and 2) “is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Simply put, before an owner of a trade secret is entitled to a legal or equitable remedy for another’s use of that trade secret, the owner must prove that the trade secret was “misappropriated.” A trade secret is “misappropriated” if it is

acquired “by a person who knows or has reason to know that the trade secret was acquired by improper means” or if a trade secret is disclosed without permission by a person who had a “duty to maintain its secrecy or limit its use.” If you believe that any of your organization’s trade secrets have been misappropriated, or are about to be, consult with legal counsel quickly, before that valuable information becomes public knowledge.

DEPARTMENTS > Contact: John Onorato

Safeguard Your Organization’s Innovations

Attorney John Onorato is the vice president/general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.

J.H. BENNETT MOVING & STORAGE INC.J.H. BENNETT MOVING & STORAGE INC.A Family Tradition Since 1914

J.H. BENNETT MOVING & STORAGE INC.J.H. BENNETT MOVING & STORAGE INC.A Family Tradition Since 1914J.H. BENNETT MOVING & STORAGE INC.J.H. BENNETT MOVING & STORAGE INC.A Family Tradition Since 1914

814-456-5377 1-800-452-8668 1705 Raspberry Erie, PA 16502www.jhbennett-moving.com

Providing full-service relocation and transportation services...from anywhere in the U.S. ... to anywhere in the U.S.

Celebrating our 95th year in business!


BENEFIT CONSULTANTS, INC.

DAVEVIC BENEFIT CONSULTANTS, INC.

Phone 800-854- -458-

“Finding Solutions Beyond the Obvious”

Finding comprehensive personal and business insurance at affordable rates is

-line objectives– value and affordability remain the same.

At Davevic Benefit Consultants, Inc. we look for ideas not excuses. As one of

employee benefits, financial and Pension planning, we know how and where to find solutions that lie beyond the obvious.

Offering Group Products: Health Insurance Vision

Life Dental

Disability 401 k &Pension Planning

Offering Individual Products: Health Insurance Dental

Medicare International Medical

Life Short-term Medical

Disability Financial Planning

Providing Administrative Services :

Health Reimbursement Arrangement Accounts

COBRA

Employee Benefit Statements Benefit Manager

Premium Only Plans (POP) HIPAA

Payroll Services W-2 Reporting

Company PROFILE Networking Technologies 3910 Caughey Road Suite 207 Erie, PA 16506 Contact: Jim Bahm, President Ned Reade, Vice President Steve Miller, Sales Web Site: www.net-cloud.com Date Founded: September 1998 Employees: 13 Market Reach: Continental United States Specialty Markets: Healthcare Manufacturing Telecom Small / Medium Business

Company Description: Founded in 1998 by Jim Bahm and Ned Reade, as a data communica-tions consulting firm, Networking Technologies has evolved to pro-vide high-end IT support, consult-ing and technical services. With extensive experiences in healthcare, education, government, business and industry, Networking Tech-nologies has grown to be one of the premier IT service companies in the region. With the IT landscape becoming more and more complex, the lead-ing companies in Northwestern Pennsylvania have turned to Net-working Technologies to resolve issues requiring unique skills and abilities. By keeping abreast of the latest cutting edge technologies, Networking Technologies is able to provide creative and effective solu-tions for difficult IT challenges. Consulting & Professional IT Services: Reaching a national presence, cli-ents have relied on Networking Technologies’ consulting services to provide project management, technical direction and IT business consulting for projects ranging from simple 6,000 mailbox mail server transitions to 250,000 user network mergers. Networking Technologies is com-mitted to providing the best techni-cal resources for their customers. With established partnerships with industry leaders, the company maintains insight and direction into the ever-changing data communica-tions industry. While maintaining their mission: “To be Customer Centric Provider of Data Communications Consult-ing and Technical services.”

Managed & Network Assurance Services: In 2008, Networking Technolo-gies expanded their offerings to include Managed Professional Services. Expanding the net-work monitoring and service assurance services, their trade-marked Cloud Control® Ser-vice introduced Networking Technologies’ first remote out-sourced IT service.

Cloud Control® marked the first affordable solution for cli-ents to predictably manage their IT costs. With an established nationwide customer base and participation in the MSP Alli-ance, Networking Technologies continues to lead this relatively new industry. Community Involvement: Networking Technologies is proud to continue to support the following regional programs: Crohn’s and Colitis Foundation of America, an organization dedicated to finding a cure for Crohn’s disease and ulcerative

colitis. Lake Erie PRIDE, an organiza-tion of Erie youth dedicated to being and promoting a Safe and Drug-Free Youth. Ellen Curry Foundation, an or-ganization which provides scholarship opportunity to ele-mentary school children to lead them to economic self suffi-ciency.

JOIN THE KEEP PENNSYLVANIA PRODUCING COALITIONA division of the Manufacturer & Business Association’s (MBA) Government Affairs Department, Keep Pennsylvania Producing (KPP) is the MBA’s newest and most advanced grassroots initiative, putting advocacy opportunities at your fingertips.

KPP educates its members through quality and timely information, while motivating them to take action in simple and effective ways. The Coalition represents the MBA’s more than 4,700 member companies located in 27 counties across Pennsylvania.

KPP exists as a way for the business community to influence legislators and legislation that is coming out of Harrisburg and Washington, D.C. Through its educational resources and events, the Coalition aims to motivate its members to take action — and promote a unified, pro-growth, pro-business agenda.

Join now at www.keepproducing.org!To learn about the five things you can do to keep Pennsylvania producing, see our special flyer in the digital edition of this month’s Business Magazine at www.mbausa.org. Plus, download your free copy of the KPP’s Grassroots Advocacy Handbook at www.keepproducing.org.

Industries We ServeFlowforming can be used in any industry that requires complex, hollow metal parts. Our most common industries include:

AerospaceEnvironmentalFiltrationFood ProcessingMedicalMilitaryMicro-ElectronticsPharmaceuticalPulp and Paper

FlowformingPlusPMF offers concept to completion manufacturing with engineering consultation across a broad range of manufacturing capabilities, including fl ow forming, rotoforming, electromagnetic forming, hydroforming, laser cutting, machining, heat treating, and press forming.

Flow forming is a lesser-known cold-extrusion metal-forming technique that makes seamless, near-net, complex, hollow metal parts. It has the capability to produce parts with varying wall thicknesses and control wall tolerances to within a few thousandths of an inch.

Benefits of Flow FormingSeamless Parts–Create a single part with a varied wall thickness and without welds. By reducing the welds, we reduce the amount of extra testing that is required on the fi nal part.

Less Weight–Flow forming allows the fi nished part to have varying wall thicknesses, which reduces the overall weight of the part. In addition, fl ow forming allows you to form many lighter weight materials that may be hard to form by other processes.

Less Cost–Enables the one-piece construction of assemblies and saves money in material and assembly costs.

PMF Industries, Inc. Precision Metal Forming2601 Reach Road · P.O. Box 3186Williamsport, Pennsylvania 17701 USAEmail: sales@pmfi nd.com

Website : www.flowformingplus.comBlog : www.insidepmf.com

CertificationsNadcap: Aerospace Quality StandardsISO 9001AS:9100

Main/Interchange O!ce

Asbury Road O!ce

Downtown O!ce & Private Banking

Harborcreek O!ce

Meadville O!ce

www.eriebank.net

OntheHill DEPARTMENTS > Contact: Sheila Sterrett

Made in Pennsylvania. This phrase is the most literal when speaking of products manufactured here in the Commonwealth. According to the National Association of Manufacturers, in 2009, the industry comprised more than 10 percent of the total employment in the state, with nearly 600,000 employees earning, on average, approximately $12,000 more than their nonmanufacturing counterparts.Unlike the spend-to-save mentality of the current administration, manufacturing is a proven strategy to keep our work force employed. That is why it is so important to foster a positive business environment at the state and federal government levels. A competitive business climate is key to keeping and growing the number of jobs in the Commonwealth, and it’s necessary that legislators understand that point. On November 2, Pennsylvanians will head to the polls to elect one U.S. senator, 19 representatives to Congress, a new governor, 25 state senators and 203 state representatives.Do you know who your candidates are? More importantly, do you know what they represent? Are you going to vote for the candidates who promise to grow the economy, instead of spending money we don’t have?One of the top 10 ways to be a business advocate is to register to vote and exercise this right in both the primary and general elections. Another important way to be a business advocate is to stay informed. Read the newspaper, listen to the radio, receive e-newsletters from the Manufacturer & Business Association (MBA), watch the news and visit www.keepproducing.org to stay up to date on the latest candidate news. You also should visit candidates’ Web sites to read their full position statements.At right are four very important issues that the MBA has identified as critical to its members. Do you know where your U.S. Senate candidates stand on these important issues? Once you’re aware of their political positions, visit www.keepproducing.org to find out about the other 2010 candidates, and remember to vote on Tuesday, November 2.

Victory 2010: Electing a Pro-Business CongressSheila Sterrett is the director of Government Affairs for the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or [email protected].

Joe Sestak - D Pat Toomey - R

Tort Reform Opposes capping medical liability dam-ages at $250,000. Source: Washington Examiner, February 26, 2010

Supports tort reform as a component of health-care reform that will help reduce costs. Source: www.toomeyforsenate.com

Estate Tax Voted in favor of HR 4154, which would make a high estate tax rate permanent. Source: www.nam.org

Co-sponsored HR 8, the Death Tax Elimination Act, calling for the phaseout of estate and gift taxes over a 10-year period. Source: www.ontheissues.org

2009-2010 Health-Care Reform

Endorsed HR 3962, the House version of health-care reform legislation. Also voted in favor of HR 3590, the Patient Protec-tion and Affordable Care Act — the Senate-passed version of health-care reform legislation. Source: www.nam.org

Called on the Pennsylvania Congressional delega-tion to reject HR 3962. Forcefully denounced the passage of HR 3590 and pledged to “repeal and replace” the legisla-tion if elected. Source: www.toomeyforsenate.com

Climate Change Mandates

Claims that the Waxman-Markey climate change bill was the minimum needed to combat climate change and supports the EPA Endanger-ment Finding. Source: www.sestak.house.gov

Opposes cap-and-trade legislation on the premise that it will raise the price of energy and cost jobs.Source: www.toomeyfors-enate.com

Pennsylvania’sU.S. SenateCandidates


IMPROVE BUSINESS CAPABILITIES AND PERFORMANCE

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Archival Solution Inc.Document Management Solutions That Are Based on the Customer

Are you tired of paying for record storage and not being able to have your record found?

Are you tired of poor customer service?

Are you tired of waiting days to have records delivered or picked up?

Are you tired of paying for services that drain your budget?

Are you being charged for reports and searches that should fall under the standard of what a records management company should do for you?

Tired of all the same runaround? Archival Solution is Your Answer to All Your Records Management Needs.

721 Parade Street, Erie, PA 16503

814/969-2939Quality Integrity Customer Service

For a better look at SinterFire, Inc. and the products they produce, call (814)-885-6672 or visit www.sinterfire.com.

For over 10 years, SinterFire, Inc. has been the preferred supplier of lead-free frangible projectiles. Located in the rolling hills of Kersey, Pennsylvania, this family owned business has provided products that are being used by our military, law enforcement and security agencies.

The SinterFire bullet has become the standard for new technology in the world of military/law enforcement training and duty applications, home defense, and competitive shooting with features such as:

Lead-freeReduced Hazard Environmentally Friendly Materials No Ricochet, Frangible Composition Up Close Capable

Over the years, SinterFire has receivedrecognition for their achievements bytheir peers, customers and supporters. We are a proud supporter of those who put their lives on the line every day for the freedoms we enjoy as Americans.

When Performance Counts,count on

SinterFire projectile and post-shot powder

The original lead-free frangible bullet!

For a better look at SinterFire, Inc. and the products they produce, call (814)-885-6672 or visit www.sinterfire.com.

For over 10 years, SinterFire, Inc. has been the preferred supplier of lead-free frangible projectiles. Located in the rolling hills of Kersey, Pennsylvania, this family owned business has provided products that are being used by our military, law enforcement and security agencies.

The SinterFire bullet has become the standard for new technology in the world of military/law enforcement training and duty applications, home defense, and competitive shooting with features such as:

Lead-freeReduced Hazard Environmentally Friendly Materials No Ricochet, Frangible Composition Up Close Capable

Over the years, SinterFire has receivedrecognition for their achievements bytheir peers, customers and supporters. We are a proud supporter of those who put their lives on the line every day for the freedoms we enjoy as Americans.

When Performance Counts,count on

SinterFire projectile and post-shot powder

The original lead-free frangible bullet!

Blue Ocean Strategy Center

EDITORIAL > by J. David BellEnergyUpdate

Through the EEA-PA, these companies have saved an average of 22 percent when compared to the PPL’s utility rate in the center of the state, and similar results are expected in utility territories where rate caps expire in January 2011. Many retail aggregators can only offer savings of 10 percent.

The EEA-PA DifferenceThe best way to truly measure the success of the EEA-PA is to hear from the employers already enrolled in the program. In a short span of time, many of these organizations have realized a significant difference in their operations’ energy bills.

According to Jerry L. Blanchard, owner of Miller’s Furniture of Mill Hall, “I would like to say how pleased I am with making the switch from PPL Electric to EEA-PA. Since becoming a new member seven months ago, we have saved an average of 33 percent over our previous rates. Keeping in mind the state of the economy and the difficulty in these times to balance a budget, it is important for us as a small business to save money wherever we can.”

For G&M Bandsaw, Inc., a manufacturing company with 12 employees in Montgomery, Pennsylvania, the EEA-PA was the right choice for their low-cost electricity supplier. “I have been very pleased with our new energy program,” said Chet James, president and owner. “The EEA-PA has saved us 25.4 percent compared to rates with PPL for the first and second quarter of 2010. I heartily recommend EEA-PA. It’s a ‘no brainer’!”

This savings potential is why Bell encourages companies, especially those in the Penelec territory, to begin the EEA-PA enrollment process by mid-October. A typical changeover to the EEA-PA program takes about six to eight weeks for the utility to complete.

“If you wait until November or December to enroll in the EEA-PA, you may be missing out on savings when the caps are removed,” he says. “The sooner you enroll, the sooner you can save. Making this kind of investment in your energy savings is good business.”

Please visit www.eeapa.com to learn more about the EEA-PA, to get a free energy analysis, to register for an energy briefing or Webinar, or to contact one of the EEA-PA representatives in your area.

The Manufacturer & Business Association (MBA) recently announced the successful rollout of its low-cost energy program, the Employers’ Energy Alliance of Pennsylvania, Inc. (EEA-PA), one of the newest services made available to Association members.

“The EEA-PA is a wholly owned subsidiary of the Association and we have already saved participating companies in the PPL territory more than $1 million in electric costs since the beginning of January,” says Association President Ralph Pontillo. “Right now, we are positively positioned to see these savings grow.”

Unlike other energy providers, companies enrolled in the EEA-PA are also members of the MBA. They enjoy the savings of the EEA-PA program and the additional benefits of the Association, from free Legal and HR hotlines to insurance and benefit services, legislative updates and much more.

“Who else can provide all these services and save you money on your energy costs at the same time?” asks Pontillo. “The benefits to our members are immeasurable.”

Rewards of Energy Choice From Erie to Pittsburgh and Sharon to Williamsport, employers across the state will all soon be able to reap the benefits of energy choice.

By the end of the year, electric rate caps will be completely removed in Pennsylvania, and the potential savings could have a major impact on many of these businesses’ success and survival.

“Energy choice is an important decision to the many employers who are faced with huge energy bills on top of the onerous and burdensome government regulations and taxes that affect their daily operations,” notes J. David Bell, president of the EEA-PA. “By enrolling in a program like ours, we are able to aid these organizations with a new energy savings strategy so they can focus on what they do best.”

According to Bell, the EEA-PA is able to get its members greater savings because of its unique business model. “As the only wholesale pass-through model in Pennsylvania, the EEA-PA makes the most sense for small and medium-size companies that want the lowest possible rates without a long-term commitment,” he says. “They also do not have to go through a middleman, which typically adds on considerable fees and markups.”

Investment in a Low-Cost Energy Program is Good BusinessEEA-PA Already Has Saved Members More Than $1 Million in Electricity Costs

Employers’ Energy Allianceof Pennsylvania, Inc.


Lean - Six Sigma Certification — ErieFrom left: Andrea Feidler, CMI EPTI; Michelle Marshall, Better Baked Foods; and Association Training instructor Ray Davis. Not pictured: Four graduates from three companies.

Leadership for Team Leaders — ButlerFront row, from left: Mark Klabnik, Derek Hohman, Jenn Anderson, Julie Smith, Brenda Bowser, Chad Graff and Tom Rosol, II-VI, Incorporated.

Back row, from left: Wade Greenwald, Todd Tommaney, Fred Bicker, Chris Smith and Brian Kurn, II-VI, Incorporated.

HR Essential Series — ErieFrom left: Lee-Ann Czytuck, Steris Corporation; Linda Rihel, Better Baked Foods; Kyle Noyer, Regional Cancer Center; and John Onorato, Association vice president and general counsel.

HR Essential Series — ErieFrom left: John Onorato, Association vice president and general counsel, and Melissa Vybiral, Custom Plastic Specialties.

HR Essential Series — ErieFrom left: Mari Anne Clark, Erie Regional Airport Authority; Jeannie Hickman, Quality Life Services; and John Onorato, Association vice president and general counsel.

Supervisory Skills Series — St. MarysFrom left: Joe Fox, Contact Technologies; Sean Van Alstine, Metaldyne; Diane Morgan and Angela Surra, St. Marys Insurance Agency, Inc.; and Kimberly Briggs, Office of Human Services.

Events2010 Fall Training GraduatesThe Manufacturer & Business Association recently held a series of luncheons to recognize the more than 100 graduates of its professional development and computer training programs. Visit the Photo Gallery on www.mbausa.org for complete photo coverage.

Leadership for Team Leaders — Erie Front row, from left: Jessica L. Mazariego, The Plastek Group; Jennifer Corey and Betty Wyant, Homerwood Hardwood Flooring; and Jamie Greene, Signal-Tech.

Back row, from left: Steven Schueler, Homerwood Hardwood Flooring; and James Borowski, Jeff Babcock and Mike Cieslak, ERS.


Supervisory Skills Series — WarrenFront row, from left: Justin Becklund, Glenda Gerbec and Amy Naser, Whirley Industries Inc.; and Earl Wilcox, Youngsville Borough.

Back row, from left: Bob Darts, Chad Hoatling, Jim Ciprich, Mike Driscoll, Terry Turner and Shaun Courtney, Superior Tire & Rubber Corp.

Supervisory Skills Series — WilliamsportFront row, from left: Jerry Horning, Koppers Inc., and Betty Balzer, Ralph S. Alberts Co.

Back row, from left: Wendy Gleckner, Brodart Company; Teresa Mook, Susquehanna Fire; and Daniel Goss, Susquehanna Fire.

Access Application Specialists – ErieFront row, from left: Jackie Jensen-Withey, Economic Development Corp. of Erie County; Beth M. Vantassell, Erie Veterans Affairs Medical Center; Sheryl Hoetzel, Erie County Department of Public Safety; and Association Computer Training Manager Amy Pontillo.

Back row, from left: Grace Bojarski, Judianne Hyde and Matt Rizzo, Erie Insurance Group. Not pictured: Six graduates from four companies.

Supervisory Skills Series — MeadvilleFrom left: Amy Alexander, Dad’s Pet Care; Mary Anne Bajorek, Turning Point Chemical Dependency; Mildred Boyd, Lawrence County Drug & Alcohol Commission; and Ruth Dobos, Dad’s Pet Care.

Supervisory Skills Series — ErieFront row, from left: Chris Lueck, Accuride - Erie; Roger Gariepy, Better Baked Foods; Judy Cooklis, Erie Insurance Group; Association Training instructor Lisa DeFilippo; and Jarrod Trojanovich, Associated Clinical Laboratories.

Back row, from left: Peter Hirneisen, Erie Water Works; Blaine Fellows, Marquette Savings; Frank Leone, Doug Dougherty and Jamie Persino, Erie Water Works; and DiAndre Thompkins, Accuride - Erie.

Excel Application Specialists – ErieFrom left: Valinda McCoy, Economic Development Corp. of Erie County; Tina Gonzales, Erie Insurance; Corrie Bednez, Target Pet Treats; and Association Computer Training Manager Amy Pontillo. Not pictured: Thirteen graduates from nine companies.

Supervisory Skills Series — ErieFront row, from left: Steve Wagner, Denise Chulak, Mariana Skonieczka and Teresa Cook, Presque Isle Downs and Casino; Mary Beth Huegel, Erie Insurance; Tonya Pace, Howard Industries; Stephanie Burkett, Bay Valley Foods; Mindy McAllister, Presque Isle Downs and Casino; Nikki Rutigliano, Alliance Plastics; Brooke Hughes, Presque Isle Downs and Casino; and Kevin Renwick, Seaway Manufacturing.

Back row, from left: Terry Smith and Darrin King, McInnes Rolled Rings; Brad White, Erie Bronze & Aluminum; Kenneth Bleil, Presque Isle Downs and Casino; Elvir Saracevic, Bay Valley Foods; Mark Kraus, Presque Isle Downs and Casino; Kari Carpenter, Greenleaf Corporation; Tim Robbins, Erie Bronze & Aluminum; Justin Stidham, Emergycare Inc.; and John Phelps, Erie Forge and Steel.


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HILL, BARTH & KING’S ALLEGRETTI APPOINTED TO TASK FORCEHill, Barth & King LLC (HBK), Certified Public Accountants and Business Consultants’ Christopher M. Allegretti, CPA, managing principal and chief executive officer, has been appointed by Newt Gingrich to the Jobs and Prosperity Task Force Advisory Board.

Former Speaker of the House and General Chairman of American Solutions Newt Gingrich announced the appointment of Allegretti to the Advisory Board of his Jobs and Prosperity Task Force, which is comprised of the most successful and accomplished business leaders and entrepreneurs in America.

As an Advisory Board Member, Alle-

gretti will be invited to Washington for strategy sessions and events where he will discuss ways of turning Ameri- can economic problems around with solutions that have been used in suc-cessful businesses.

NORTHWEST SAVINGS NAMES MANAGER FOR NEW BRANCHSusan Cunningham has been named manager of Northwest Saving Bank’s newly completed branch office at 850 Pittsburgh Avenue in the West Erie Plaza in Erie.

As manager, her responsibilities include all aspects of mortgage and consumer lending, the business development of deposit account relationships, administration of bank policies and procedures, and customer and community relations. In addition, she partners with Northwest’s Commercial

Lending, Business Services, and In-vestment and Trust Services to develop client relationships.

AMERICAN CANCER SOCIETY HONORS SAINT VINCENT CEOThe Erie County Unit of the American Cancer Society named Saint Vincent Health System President and CEO, C. Angela Bontempo, MHA/MBA, FACHE, as the honoree of the third annual Erie Golf Premiere held this summer at the Kahkwa Club in Erie.

“As a cancer survivor,” said Bontempo, “I realize the importance of cancer programs, and I am pleased to be a part of this American Cancer Society Golf Premiere.”

Saint Vincent Health System associates serve on numerous American Cancer Society committees.

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Documents

October 2010 Business Magazine