february 2009 business magazine

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APRIL 2010SPECIAL ADVERTISING SECTIONSecond Annual Golf Showcase

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Ad Space Deadline: Monday, March 1, 2010 • Ad Materials Deadline: Wednesday, March 10, 2010

Advertising Contact: Lori Maus Joint • [email protected] • 814/833-3200 • 800/815-2660

GOLF: It’s more than just a game for the business person...

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NEW THIS YEAR: A listing of our readers favorite golf courses!

It can be the most important four-hour, one-on-one game of opportunity a business can play! And with so many options and so little time, it’s more important than ever to know where the grass is greener by advertising in the Business Magazine’s second annual Golf Showcase.

• More than 70 percent of our readers (15,000 CEOs, presidents, owners and executives) play golf and/or plan golf events.

• Distribution includes 27 counties of Pennsylvania, northeast Ohio and western New York.

• Digital edition posted on www.mbausa.org and distributed electronically to online subscribers each month.

Business Magazine Golf Showcase: April 2010 Choose from two affordable advertising options to feature your golf course or club, driving range or retail store.

BUSINESSM A G A Z I N E

Manufacturer & Business Association VOLUME XXIII, NUMBER 2 FEBRUARY 2010

Farmers National Bank pg.10

Firmly Rooted in Community Banking for 110 Years

Member FDIC. Citizens Bank is RBS Citizens, N.A. and Citizens Bank of Pennsylvania. 67530

22DEPARTMENTS > 4 / Business Buzz14 / HR Connection

17 / On the Hill 18 / Legal Q&A24 / People Buzz

10FEATURES > 3 / SpotlightRonald Walko, president and CEO of Jersey Shore State Bank, talks about the operations of this central Pennsylvania bank and the state of the banking system today.

10 / Farmers National BankChairman, President and CEO William C. Marsh and his executive management team discuss the growing footprint of this 110-year-old commercial bank and why it is firmly rooted as one of the 100 top community banks in America.

17 / On the HillAshley Borchilo of the MBA’s Govern-ment Affairs Department urges business leaders to join the Association’s advocacy coalition, Keep Pennsylvania Producing.

21 / Central PA Anniversary Awards Ceremony See photos from the recent recognition ceremony held for central Pennsylvania businesses that are marking major mile-stone anniversaries in 2010.

INSERT / Training CatalogFind the computer and professional development courses that are right for you in the Association’s new quarterly training catalog.

February 2010

READ BY LOCAL TV SHOW HOSTS Skunky (aka Production Assistant DJ Barker), from Community Access Television Channel 2’s Skunky’s Travels, takes five with the Business Magazine at the CAT Channel 2 offices in downtown Erie. Now you too can be a Business Magazine star. Take a picture with a recent issue and send it to [email protected].

21

Blue Ocean Strategy Center

SPECIAL SECTION >

6 / The Network Locate some of the area’s best financial services providers and others in our new business card section.

EDITORIAL > 5 / Health MattersHow reform likely will result in an increased demand for individual health-care plans.ANTHONY BENEVENTO

7 / In the Bank Tips to help you and your employees de-stress over debt.JASON DIETZ

9/ Legal BriefWhy employers must carefully analyze bonus payments under the Fair Labor Standards Act. DAN MILLER

23 / Tech NewsTeleworking: How recent advances in voice and data communications are redefining the very nature and form of work. JEFF LYTLE

25 / Blue Ocean StrategyHistory teaches us that some of the world’s greatest inventions and opportunities emerged during difficult, if not impossible, economic times. ANGIE ANGUS

4

February 2010 > www.mbausa.org > 1

Now with 12 locations throughout Erie & Crawford counties

True Hometown Banking,We Mean Business.

When it comes to

We call it true hometown business banking because Marquette Savings Bank is the only bank locally owned and headquartered in Erie with all of its officeslocated in Erie and Crawford counties.

What does hometown business banking mean to you and your business? You get lending decisions from local decision makers – not from out-of-town bankers who don’t know you. You get decisions faster. You get better rates because we don’t pay dividends to shareholders. It also means we’re committed to this community. Founded in 1908, we’ve been a part of your hometown for more than a century.

Business banking at Marquette offers business checking, lines of credit, business loans, remote deposit capture and more.

Find out just how good true hometown business banking can be for your business. In Erie, call Dave at (814) 455-4481. In Crawford County, call Gene at (814) 337-7929.

Eugene CirkaBusiness Banker, Crawford County

Louis NatalieChief Credit Officer

David SlomskiVice President, Business Banking

Michael EdwardsCEO



When it comes to








Michael EdwardsCEO



When it comes to








Michael EdwardsCEO

SPOTLIGHT > by Karen Torres

VOL. XXIV, NO. 2 FEBRUARY 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 Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer John Cline & Business Dale Deist Association Board Timothy Hunter of Governors Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Contributing Angie Angus Writers Anthony Benevento Jessica Crocker Jason Dietz Dan Miller Jeff Lytle

Photography Bruce Bennett Photography 814/899-1161

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

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

The financial industry has been under intense scrutiny since the economic downturn began. How worried should people be about the banking system?I feel well run banks that have made smart lending decisions and managed their credit and interest rate risk will be fine. Just like a consumer, if poor business decisions have been made in the past it will be difficult for them to succeed.

What is the state of business lending today? What concerns are you hearing from your business customers?There have been numerous media reports that banks have stopped lending. However, we have not stopped lending money in our communities. Our philosophy has always been to be a good corporate citizen, which entails collecting local deposits that are then lent within our market footprint to spur economic development. Overall, I think all businesses are concerned about the economy and what 2010 will bring.

What changes, if any, have you made in lending requirements to give businesses the ability to borrow the money they need?We have never felt the need to get involved in lending practices that were not good for our customers. We have always considered ourselves a trusted partner with our customers and will continue to smartly lend money to businesses in our communities during 2010 that meet our credit guidelines.

As a full-service commercial bank, what other services do you provide?In addition to a full line of deposit and loan products, we offer customers all the latest electronic banking services such as Internet Banking, Mobile Banking, Remote Deposit, Bill Payment and E-Statements. We also offer investment and insurance products through the bank’s subsidiary The Comprehensive Financial Group.

What opportunities and challenges do you see ahead for Jersey Shore State Bank?I feel that we make our own opportunities and, as long as we continue to make smart business decisions, we will continue to do well for our customers, shareholders and employees. We will face challenges such as the economy and increased regulation the way we have in the past, head on. A company, such as ours, does not operate for 75 years without overcoming a changing environment and capitalizing on opportunities as they are presented.

In your opinion, what will be the shape of the banking industry in the near future? I feel all the new regulations that are being implemented will make it more difficult for banks to do business and support their local communities. The cost in both dollars and employee time to comply with all the new regulations may result in other areas of banking being neglected. As with other industries, the banking industry will to some degree have to pass the increased costs on to customers through increased fees or the rate charged/paid on loans and deposits.

Ronald A. Walko is the president and CEO of Jersey Shore State Bank, a full-service commercial bank and principal subsidiary of Penns Woods Bancorp, Inc. (PWOD), operating in the communities of Jersey Shore, Duboistown, Williamsport, Montoursville, Montgomery, Lock Haven, Mill Hall, Spring Mills, Zion, Centre Hall and State College, Pennsylvania. The bank also offers investment and insurance products through its subsidiary, The Comprehensive Financial Group. Walko recently spoke to the Business Magazine about the operations of this locally owned, independent community bank.


Business Buzz DEPARTMENTS > Contact: Jessica Crocker

SCORE-ERIE SETS COUNSELING RECORD SCORE-Erie counseled 344 local companies and participated in 700 separate counseling sessions in the 2009 fiscal year – an 11-percent increase over the number of clients served in 2008. Having offered small businesses in northwest Pennsylvania free and confidential “life-cycle” mentoring and training services since 1967, SCORE-Erie will celebrate its 45th anniversary in 2010, which CEO Ken Yancey believes is the perfect time to raise awareness of the entrepreneurial spirit that drives the American economy. Since 1964, the organization has assisted more than 8.5 million aspiring entrepreneurs and small-business owners through counseling and business workshops. For more information, visit www.score.org.

ARTSERIE RECEIVES GRANT TO STRENGTHEN LOCAL ARTS ArtsErie, an Erie-based nonprofit that promotes arts in northwest Pennsylva-nia, has been awarded a $65,000 Arts and Culture Capacity Building Grant from the prestigious Kresge Founda-tion of Troy, Michigan. The Kresge Foundation, a national foundation that has historically supported fundraising campaigns to build capital projects, chose to respond to the effects of the economic crisis on arts and culture through a new initiative designed to build the capacity of nonprofit arts and cultural organizations in selected communities.

“ArtsErie was pleased to be given the opportunity to apply for this funding and thanks The Kresge Foundation for this grant,” said Charlotte P. Mashyna, ArtsErie executive director. “This fund-ing will enable us to address some of the issues facing our arts and cultural organizations.”

PALMER INDUSTRIAL TO WORK ON TRADE CENTER PROJECTPalmer Industrial Coatings, Inc., a Williamsport, Pennsylvania coating facility specializing in bridge-refurbishing and steel fabrication, cleaning and painting, has been contracted to help in the building of the World Trade Center in New York.“Palmer Industrial Coatings received a contract to abrasive blast and paint

the structural steel for the rebuilding of the transportation hub for the World Trade Center,” said Palmer Industrial CEO Dina Palmer Wascher. “The steel is fabricated by Cives Steel and transported to Williamsport for blasting and painting.”The project, currently in its third phase, is slated to be completed by September 11, the ninth anniversary of the 9/11 attacks. It has, in part, resulted in the expansion of Palmer Industrial’s payroll, with the company growing from 12 employees to 21 employees.For more information, visit www.palmerindustrial.com.

SCOTT ENTERPRISES RENOVATES, EXPANDS AMBASSADOR CENTERScott Enterprises recently completed a two-year, $17-million project, composed of the $14-million construction of the Hilton Garden Inn, and $3 million in renovations to the Ambassador Conference Center. The two form the new Ambassador Center complex at 7794 Peach Street in Erie. According to Scott Enterprises, the project created more than 45 full-time jobs.The complex features more than 21,000-square-feet of meeting space, 214 guest rooms and suites, and an 80-seat full-service restaurant under one roof.

LORD CORPORATION TO TEST HUMVEE SUSPENSIONLORD Corporation, a leader in the management of vibration, motion

and noise, recently received a federal contract to test its Magneto-Rheological (MR) suspension systems for military vehicles.� The U.S. Army Materiel Command awarded LORD the contract to test and evaluate the suspension system for the military’s four-wheel drive vehicle, the High Mobility Multipurpose Wheeled Vehicle, or Humvee. To prepare its facility to build the suspension system, LORD completed the expansion of a 1,000-square-foot production cell within its Cambridge Springs, Pennsylvania plant. The cell is believed to be the first of its kind related to heavy-duty MR dampers for military and heavy trucks in the world.� �For more information, visit www.lord.com.�

MEADVILLE MEDICAL CENTER TEAMS UP WITH ROSWELL PARK Cancer patients in Meadville and north-west Pennsylvania now have access to leading cancer research, education and prevention activities, through an agree-ment between Roswell Park Cancer Institute and Meadville Medical Center. The affiliation provides opportunities to promote the academic and clinical missions of both institutions, thereby enhancing care for the patients at the Meadville Medical Center. Roswell Park Cancer Institute, located in Buffalo, New York, is considered to be one of the national leaders in cancer research, treatment, prevention and education. For details, visit www.mmchs.org.

GE DONATES $250,000 TO COMMUNITY ORGANIZATIONS GE Transportation recently pre-sented a donation of $250,000 to seven nonprofit organizations serving the Erie community. “The Erie community is facing the most challenging times in decades due to hardships in the wake of a worldwide economic downturn,” said GE Transportation President and CEO Lorenzo Simonelli. “The economy is down. The need for social services is up. This is the time to act. We are pleased to help local nonprofit organizations who help countless others in our community.” Recipients were: The Boys & Girls Club; Erie City Mission; Habitat for Humanity; Lawrence Park Fire Department; SafeNet; Second Harvest Food Bank; and the St. Martin Center.

GE Transportation President and CEO Lorenzo Simonelli presents a $250,000 donation to be used by seven area nonprofit organizations.

4 < www.mbausa.org < February 2010

Individual health insurance plans are not new. Traditionally, individual health plans have always been the choice of persons who are self-employed, who work for small companies, who have exhausted their Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits, or have some other special circumstances. It has always been a very small part of the market.

But with change expected in terms of health-care reform, there is a strong possibility that reform will result in an increased demand for individual plans. Any health-care reform that includes a mandate for persons to have insurance will produce an increased demand for individual plans or individual family plans.

Persons who work for small companies that cannot offer health insurance, or persons who are self-employed or are unemployed, will need to examine their options in terms of individual health plans. In any case, the individual product will be more important in this era than it was previously.

Factors to consider when purchasing individual insurance:

• Benefits

• Network of hospitals and providers

• Affordability

• Qualifications for coverage

Factors to determine how much you can afford:

Reform Likely Will Lead to IncreasingDemand for Individual Health Insurance Plans

• Amount of monthly premium

• Amount of deductible

• Co-pays for physician visits

• Co-pays for hospital visits

• Cost of emergency room coverage

• Cost of medical supplies and equipment coverage

• Cost of dental and/or vision coverage

How will someone determine what plan is best for them?There are a lot of tradeoffs involved. If someone wants low premium payments, then that person has to understand that while monthly payments will be low, out-of-pocket costs for office visits and health-care services may be higher. If someone wants to control costs, they can choose a plan that has a higher premium.

Consumers also will want to know about cost sharing for drug coverage. Do you get a lower price for a generic as opposed to a brand-name drug? Will you be assessed a co-payment for services, or is there co-insurance, where you pay a percentage of the total cost? These are things that people might not have looked at as closely when they were covered by group plans.

Consumers need to look at the network that is part of their coverage to see if the hospitals and doctors that they prefer are included in the plan. If that is an important factor for you, then you need to look into that.

How likely is it that employers will look to save money by placing their employees in individual plans? That will be hard to determine, as the decision will, of course, vary from employer to employer. But, remember, the concept of having employees purchase individual plans has been available to employers for a long time and it has never drawn much interest.

Why is that? The biggest reason is that employers continue to see the health benefits that they offer employees as one of the most important tools they have in terms of recruiting and retaining top employees. That isn’t likely to change.

For more information about individual health plans, visit www.upmchealthplan.com.

Health MattersEDITORIAL > by Anthony Benevento

Anthony Benevento is vice president of Sales and Marketing for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division – which includes UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and E-Benefits – and which offer a full range of insurance programs and products.


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

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

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Financial Advisor

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Telephone: 814-602-9331

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[email protected]

EnvironmentalStewardship

EconomicProsperity

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AREAfederal credit union

814-336-2794 or 888-299-7351

www.meadvilleareafcu.com

Your primary financial institution.Call visit or stop by today...

Heather Clancy-Young, CEO

300 Arch Street, Meadvilleor

280 North Street , Saegertown

MEADVILLE

The Network

Jason Dietz is the chief operating officer for the Erie General Electric Federal Credit Union, which has more than $200 million in assets, and serves over 31,000 members in the region. He can be reached at [email protected].

You may not realize it, but the current economic situation, job losses across the region, and increasing debt affects your business from the inside out. An employee dealing with high debt or loss of a job within their household has the potential to be consumed by thoughts of financial stress, resulting in lower performance at work. If overwhelming debt is causing your employees strain, you (and they) are not alone.

Millions of Americans are suffering from anxiety and even depression because they have difficulty paying their financial obligations. Whatever the cause of the debt — be it over-spending, salary reduction, or emergency expenses such as medical bills — the action needed to beat the “bill blues” is the same. Share some of these tips with your employees, and look to offer free financial counseling from your credit union, or other financial group and you’ll see a difference in your bottom line.

Talk about it. If you are depressed about money problems, you may feel alone. Yet the moment you begin to discuss it, you will find that not only are you not alone, but that discussing it can make you feel a lot better.

Put it in perspective. Do you have your health? The love and support from friends and family? Sounds cliché, but focus on the good things that are happening in your life. It’s hard, but you are going to need to be optimistic to

make positive changes.

Confront the problem. Regain control by answering the bill collection calls.

Be calm and rational. Understand the Fair Debt Collec-tions Practices Act, a law that protects your rights as a consumer. Write your creditors to explain your situation. Include what led to the problem (even if it’s your “fault”) and how you plan to fix it.

Fight inertia. Get up and get out, but resist the urge to shop if your spending is out of hand. Turn down offers for new cards or credit, even if it does seem like a deal. Consider removing your name from promotional lists by calling 888-5-OPTOUT (888-567-8688).

Prioritize your spending. Chances are, there are some expenses you can reduce or cut out that can immediately relieve some of the pressure. Review your spending plan and eliminate expenses that are not absolutely essential. Prioritize according to necessity.

Rebuild your credit. It is important that you rebuild your credit rating if damage has been done already. Know your starting point by obtaining a free copy of your credit report so you can investigate any errors. Keep older accounts open since they have the greatest ability to positively affect your score. Pay down balances that you have outstanding and always make payments on time!

Finally, since it is necessary to have some positive open-ended credit available to rebuild your score, try to obtain a new source such as a secured credit card or by being put on someone else’s account as an authorized user. Rebuilding is not easy, but it will be worth it.

The Erie General Electric Federal Credit Union is here to help. As a not-for-profit financial cooperative, the credit union structure is built on people pooling their funds to lend and save together. The free financial counseling, affordable financial programs and access to affordable credit that credit unions provide are paramount to getting out and staying out of financial trouble, especially in times like these.

For assistance or more information, visit one of the Erie General Electric Federal Credit Union’s seven locations or go to the Credit Union’s Web site, www.egefcu.org.

In The BankEDITORIAL > by Jason Dietz

De-Stressing Debt: How to Overcome Arrears Anxiety


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When employers grant bonuses to employees they typically do so to reward the employee for past or future service. However, under certain circumstances, granting a bonus to employees can create liability for an employer in the form of overtime compensation.Employers must carefully analyze bonus payments under the Fair Labor Standards Act (FLSA), which requires certain types of bonuses to be included in calculating the regular rate of pay, which is used to calculate overtime pay. If a bonus payment is the type that must be included in compensation, it will cause an increase in the employee’s hourly rate of pay and will result in an increase of total compensation during workweeks in which overtime hours are worked. Whether a bonus will be taken into consideration in calculating an employee’s overtime under the FLSA depends on its purpose and nature. Bonuses that are designed to encourage increased efforts on the part of employees constitute earnings, which must be included in the overtime pay calculations. Bonuses that are rewards for past services rendered by employees, and that are not devised until after the services have been rendered, may be excluded from overtime pay calculations.Bonuses That Must Be Used to Calculate OvertimeA bonus that is intended to increase an employee’s efforts must be part of their weekly earnings because employees are working for the bonus and they depend upon it to be a component of their wages. Examples of bonuses that must be included in overtime pay calculations are attendance bonuses, production bonuses (both individual and group),

bonuses for quality and accuracy of work, efficiency bonuses, bonuses for the highest number of overtime hours worked, length of service bonuses, bonuses promised to employees at the time of hiring, and bonuses provided for in union contracts. If a bonus is included in the compensation of an employee’s regular hourly rate, such employee’s overtime pay also will increase. For example, an employee who gets paid $10 per hour who works 45 hours and receives a $50 bonus for a week, will have an hourly rate for that week of $11.11 per hour (($450 + $50) divided by 45 hours). Thus, the employee’s overtime pay for that week will be $41.66 as opposed to $37.50 ($10 x 1.5 x 5 hours x !) since the bonus must be included in calculating overtime.Bonuses That Need Not Be Used to Calculate OvertimeIf an employer decides to give employees a bonus after the employee has already rendered services, the bonus then is more like a gift. Bonuses that may be excluded from overtime calculations include Christmas bonuses, gift bonuses, bonuses wholly within the employer’s discretion, profit-sharing bonuses paid pursuant to a profit-sharing plan and trust, and bonuses based on a percentage of an employee’s total wages. Percentage of WagesOne of the easiest ways to avoid having a bonus affect an employee’s overtime compensation is to grant a bonus based on a percentage of wages. Such bonuses protect an employer from liability for overtime pay since a percentage of both straight time and overtime compensation already compensates

the employee for overtime. However, incentive and production bonuses based on a contract, agreement, or promise, such as attendance bonuses, must typically be included in an overtime pay calculation. In order to minimize liability when attempting to grant a benefit to employees in the form of bonuses, employers should review the type and nature of the bonuses being paid to make sure they fit within the type of bonuses that are excludable from the overtime pay calculation.

For more information, contact Dan Miller at MacDonald, Illig, Jones & Britton LLP at 814/870-7708 or [email protected].

Legal Brief

Dan Miller is a partner with the law firm of MacDonald, Illig, Jones & Britton LLP. He represents management in collective bargaining, labor relations, employee relations, employment discrimination, unemployment compensation, and wage-and-hour cases.

Bonuses: When a Gratuity Creates Liability

EDITORIAL > by Dan Miller

When Bonuses Create Liability

• Bonuses that are intended to increase an employee’s efforts must be used to calculate overtime.

• Bonuses that are given after an employee has rendered services and that are discretionary need not be used to calculate overtime.

• Percentages of wage bonuses are an easy way to comply with the wage-and-hour requirements.


In the sleepy, Norman Rockwell-esque town of Emlenton, nestled along the Allegheny River north of Interstate 80, Farmers National Bank is proof that good things do come in small packages – especially when it involves commercial banking in western Pennsylvania.Headquartered in Venango County, with 13 offices in Venango and the seven neighboring counties of Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer, the independent community bank has grown by staying rooted in community banking, and by maintaining headquarters in the very same location where it has operated for the past 110 years.“We’re local, we’re community oriented, we’re disciplined and we’re flexible,” notes Chairman, President and CEO William C. Marsh. “We really have positioned ourselves to be successful.”Marsh, an Oil City native and CPA or “numbers guy” by trade, has the accounting and finance experience to support his bold statements. He began his career at Farmers in 2001 as chief financial officer and, in 2006, was named executive vice president of the bank’s holding company, Emclaire Financial Corp. By January 2009, he assumed his newest position, steering the bank through one of the most challenging economic times in our nation’s history — no small feat, but one that he and Farmers have handled well.Backed by its shareholders, progressive Board of Directors and 125 employees bankwide, Farmers already has increased its total assets under management to $460 million, been named one of the top 100 community banks in the United States, and experienced 20-percent growth by completing its purchase of the former National City Bank $90 million branch in Titusville for $3 million. And, unlike the financial behemoths of Wall Street that operated on the notion of “too big to fail,” Marsh notes, Farmers National Bank’s consistent philosophy has been to be the “right size to prevail.”“We really don’t have the credit problems that other banks have had or the asset quality problems,” explains Marsh. “What we’ve really concentrated on in the last 18 months is positioning ourselves so that when the recession is over, we’re going to come out a stronger and even better player.”Solid, Safe and SecureAt a time of economic uncertainty, Farmers National Bank, which was named one of the top 100 community banks in the country by the

American Bankers Association Banking Journal in 2009, indeed has become synonymous with “solid, safe and secure.”The FDIC-insured institution has been well capitalized with a strong core deposit base and asset quality as well as a prudent, disciplined management approach so that investment and loan decisions do not put the customer funding base at risk. Executives say Farmers’ lending practices have always been strict, and for good reason.“It’s a whole risk management exercise,” explains Marsh. “We are not going to soften our underwriting standards by making bad loans and putting the public at risk. Our customers are used to providing a lot of information, because they have a relationship with us.”Farmers’ branch managers have local lending authority to take applications for residential mortgages, home equity and consumer loans. The bank also has four commercial loan officers who handle all of Farmers’ small-business lending, for various markets including student housing in the areas near Slippery Rock and Clarion uni-


Chartered in 1900 by James Bennett and a group of businessmen in Emlenton, Pennsylvania, Farmers National Bank is an FDIC-insured national banking association that conducts business through 13 offices in Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, Mercer and Venango counties. The bank is a wholly owned subsidiary of Emclaire Financial Corp. (EMCF), a Nasdaq publicly traded corporation and financial holding company, which provides a wide range of retail and commercial financial products and services to customers in western Pennsylvania. The Corporation also invests in U.S. government, municipal, mortgage-backed and corporate marketable securities primarily through Farmers.

Board of Directors

Chairman, William C. Marsh Mark A. FreemerRonald L. Ashbaugh Robert L. HunterDavid L. Cox John B. MasonJames M. Crooks Brian C. McCarrierGeorge W. Freeman 10 < www.mbausa.org < February 2010

versities, small and medium-size manufacturers, trucking companies, well and gas exploration firms, service industries and the like.Lending solutions for Farmers’ customers are not one-size-fits-all.“If you are a commercial business owner and you go to another larger bank, they are not going to tailor your commercial loan the way we will,” notes Marsh. “We do some pretty unique deals; it’s not a cookie cutter approach.”Raymond M. Lawton, Farmers’ senior vice president and chief lending officer, as well as chief credit officer, has been in banking for nearly 35 years — 10 at Farmers — and is responsible for the safety, soundness and generation of loans. Today, the bank’s portfolio includes approximately $300 million in loans, which are split 50-50 between consumer and business lending with a lending limit that is sufficient to accommodate most small business customers.“We’re a relationship lender,” notes Lawton, “meaning that we want to have your deposits and all of your business and we want to know you. We lend on your ability to repay and we combine that with the security of a collateral position, so if you take into account that we’re lending in the markets where people work hard and want to repay their debts, we have safe and sound asset quality.”“We’ve got a good record of maintaining less than our peers in loan charge-offs, less than our peers in past dues, and less than our peers in nonperforming assets,” he continues. “We’ve got good people and a good market, and we’re good at what we do.”Experience That CountsIn banking, especially community banking, it is people, not products, which distinguish one bank from the next. That is the reason that Farmers has placed particular emphasis on the recruitment and retention of an experienced management team and talented associates to continue to foster and develop customer relationships.“We have a lot of tenured employees, and we have young up-and-coming professionals right out of school, so we have a good mix between older employees and new folks coming in,” says Marsh. “We don’t experience a lot of turnover, and I think that plays out well with the customers; they see the longevity.”According to Paige H. Turk, Farmers’ senior vice president of human resources and marketing, who heads up the bank’s recruitment and

hiring as well as its training and development, many of Farmers’ longtime employees have been with the bank for upwards of 20, 25 and even 35 years. Retention is a priority, she says, and that is why Farmers has a strong record of promoting from within, and why the bank offers training and continuing education programs, as well as flexible schedules.At Farmers, she notes, employees are personally invested in the communities in which they live and work, so it’s not uncommon to see them pitching in at a food drive, volunteering on a local board or helping out at a Little League game.“When you’re a community bank, you are involved in that community as well,” explains Turk. “In my mind, it’s not an asset number that distinguishes the community bank from the big bank, but it’s who you are and how you do it. When you get too big to worry about your community, then you’re not a community bank anymore.”By banking with people they know and trust, Farmers’ customers expect a certain degree of service and responsiveness.For example, when a customer comes into Farmers, according to Turk, they should expect a professional, personal experience with “smart bankers who are smart lenders.” “Our lenders include our branch managers, so when you come to Farmers to get a loan, it doesn’t get shipped off to another city or state where an underwriter is looking at the application and making the decision,” she adds. “The person who took your loan application is going to make the decision. If it’s a large loan, it will go in front of a committee. That’s very different from going to a large regional bank.”It is this ability to make sound financial decisions at the local level that has enabled Farmers to develop a thriving retail branch network and a $1 million state-of-the-art Data Center, which houses the bank’s computer systems, data processing and book-keeping departments.Today, “the technology is such that we can provide the resources that our customers demand in-house,” says Marsh. “We have Internet banking, elec-tronic statements, and remote deposit capture for our commercial customers.”Lisa R. Zigo, senior vice president of operations at Farmers who has been with the bank since 2000, over-sees the bank’s deposit operations, IT functions, loan operations, as well as product management functions and compliance. Farmers, she says, has retrenched to ensure that it is current in its technology and its communications networks have the capacity for steady, organic growth.“It’s just tremendous customer focus here,” she says. “When customers call in, they get >


Farmers National Bank’s executive management team oversees the bank’s day-to-day operations, and includes, from left: Edward A. Andrulonis, senior vice president of branch banking and financial services; Raymond M. Lawton, senior vice president and chief lending officer; Paige H. Turk, senior vice president of human resources and marketing (seated); Chairman, President and CEO William C. Marsh; Lisa R. Zigo, senior vice president of operations; and Amanda Engles, vice president and director of finance.

Teller Jamie Elder assists a customer at the bank’s headquarters in Emlenton, Pennsylvania. Farmers’ customers can expect a high-level of personal service as soon as they walk in the door.

February 2010 > www.mbausa.org > 11February 2010 > www.mbausa.org > 11

a person, someone who sees the problem through from beginning to end.” Likewise, “we’ve got a nice seasoned credit operations staff, so that we’re making sure that we’re not torturing our customers with redundant requests for information. We’re not struggling with our regulators because we’ve got really good processes in place to make sure that we’re compliant with our lending regs and our deposit regs. We’re proactive so that when we do add branches or add another bank, we’ve got a really solid base to build from.”Proven Ability to Grow WiselyThe platform for growth starts with leadership, and the Board of Directors of Farmers National Bank has been committed to the idea of remaining an independent community bank through de novo offices (newly chartered banks) and acquisition opportunities, and organic growth from within the markets Farmers currently serves.“In community banking,” notes Marsh, “it’s a bit of an oxymoron. You have to be profitable, and to grow profits you have to grow the bank. To grow the bank, you have to make a conscientious decision and have an energetic management team and, quite honestly, an energetic board to be able to do that.”Farmers has demonstrated this with startup offices in Cranberry and Grove City, the acquisition of the Elk County Savings & Loan in Ridgway, and in 2009, the acquisition of the full-service branch office of National City Bank located in Titusville. As part of that acquisition, Farmers assumed $90.8 million in deposits in exchange for $32 million in loans, $58 million in net cash, and certain fixed assets of the branch office.

Edward A. Andrulonis, senior vice president of branch banking and financial services, who has nearly 20 years of experience in community banking, says the move was a huge undertaking, but now accounts for 20 percent of the bank’s total operations and 45-percent market share in the Titusville area – a challenging, but successful conversion for a bank of Farmers size.“Our growth is targeted growth within our footprint, and these are the markets we need to be in and we feel we can excel in,” explains Andrulonis. “It’s also an area that has not been dramatically impacted by the housing or automotive markets, as some of the country.”“Slow and steady,” he adds, “will continue to describe this region for the foreseeable future.”Vision for the FutureAt a time when banks are facing much more scrutiny, from regulators and the public, and increased competition from within the industry, Farmers’ strength now and in the future, above all, is its flexibility, local decision-making and personal service. “Even through these tough economic times, we believe that we’ve done things the right way,” says Andrulonis. “Community bankers for the most part have done a good job because we haven’t strayed from what we do well.”Farmers itself is committed to staying the course. “I would say 2010, given the economy, is going to be more focused on just making sure our house is in order,” adds Marsh, “and by servicing our customers and essentially stabilizing our profitability.”But, he acknowledges, it can only do that by putting its customers, shareholders, employees and the communities it serves first – an approach to banking that has kept Farmers firmly rooted in community banking for 110 years and counting.“We are the only independent bank headquartered in Venango County, so if you’re an owner of a 200-person manufacturing plant in Venango County, why wouldn’t you want to do your business banking with us?” Marsh asks. “To me, that’s the biggest selling point. We’re here, we’re local and we’re part of the community with you.”

For more information about Farmers National Bank or Emclaire Financial, visit www.farmersnb.com or www.emclairefinancial.com.

Emlenton (Headquarters) 612 Main Street Phone: 724/867-2311 Branch Manager Scott PattonBrookville 263 Main Street Phone: 814/849-8363 Branch Manager Sue SolidaButler (Bon Aire) 1101 N. Main Street, Suite 1 Phone: 724/283-4666 Branch Manager Paul McEachinButler (Meridian) 101 Meridian Road Phone: 724/482-0133 Branch Manager Paul McEachinClarion Sixth and Wood Streets Phone: 814/226-7523 Branch Manager Tom Spence

Cranberry 7001 Route 322 Phone: 814/676-1970 Branch Manager Kristen HindmanDuBois 861 Beaver Drive Phone: 814/371-2166 Branch Manager Melinda WhiteEast Brady 433 Kellys Way Phone: 724/526-5793 Branch Manager Nannie DavisEau Claire 207 S. Washington Street Phone: 724/791-2591 Branch Manager Cindy ElderGrove City 1319 West Main Street Phone: 724/264-4260 Branch Manager Tracy Spatara

Knox 8868 Route 338, Suite 1 Phone: 814/797-2200 Branch Manager Allan JohnsonRidgway 173 Main Street Phone: 814/773-3195 Branch Manager Heather SerafiniTitusville 127 West Spring Street Phone: 814/827-5910 Branch Manager Marcia Miller

Web sites: www.farmersnb.com www.emclairefinancial.com

FARMERS NATIONAL BANK BRANCHES

Farmers National Bank has an extensive branch network that consists of 13 locations in eight counties of western Pennsylvania. The branch banking team includes, from left: Kathryn Sayers, Scott Patton, Larry Fledderman, Gretchen Decker and Aubrey Hulings.

Farmers’ corporate banking team is focused on developing long-term relationships with clients and gaining a thorough understanding of their businesses and the competitive environment in which they operate. Shown here are, seated from left: Karin Pfingstler and Shirley Carroll; and standing from left: Ronald Wig, Robert Foust and Richard Grejda.


Training That Develops

Effective Leaders

A S S O C I A T I O N T R A I N I N G S C H E D U L E

As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

Supervisory Skills Series – Warren

Front row, from left: Ruth DeVore, Bonnie McClelland, Kelly Conti,

Renee Anthony, Angela Spencer and DiAnn Savko, Whirley Industries.

Back row, from left: John Geiger, Bill White and Roy Eastman, Whirley

Industries.


“Whirley DrinkWorks selection for supervisory training is an easy decision — the Manufacturer & Business Association. Our past class participants have retained the course material and become better, more informed leaders. Our instructor kept the class interesting, informative and gave realworld scenarios. Classmates bonded and formed their own network to help one another beyond the classroom. Our company, like many others, has unique problems. Our instructor was able to customize the program to suit our needs. We’ve had outside trainers that arrive at the last minute and are unprepared — not the case with Manufacturer & Business Association. There is never a need to ‘sell’ going to class; those teammates that have previously attended do the selling for us!”

— DiAnn SavkoHR Supervisor

Whirley DrinkWorks

M A N U F A C T U R E R & B U S I N E S S A S S O C I A T I O N T R A I N I N G S C H E D U L E

March AprilProfessional Development

Supervisory Skills Series Course I (Warren) 4/21 and 4/22 Course II 4/13 and 4/20 Course II 4/21 and 4/28 Course II (Meadville) 4/28 and 5/5 Course II (St. Marys) 4/14 and 4/15 Course IV (Williamsport) 4/7 and 4/8 Price: Member $230, Nonmember $325

Leadership for Team Leaders Course II 4/1 Price: Member $155, Nonmember $275

Food Safety Certification 4/19 Food Safety Certification (Williamsport) 4/12 Price: Member $125, Nonmember $175

HR Essentials: Recordkeeping 4/21 HR Essentials: Recordkeeping (Williamsport) 4/23 Price: Member $70, Nonmember $140

ComputerAccess Level II (Two Days) 4/29 and 5/6Excel 2007 Level I 4/19 Excel 2007 Level I (Williamsport) 4/21 Excel Level I 4/13 PowerPoint 2007 Level I 4/8 Word 2007 Level I 4/15 Word Level II 4/1 Word Level II (Williamsport) 4/22 Price: Member $155, Nonmember $275

Professional DevelopmentSupervisory Skills Series Course I 3/10 and 3/17 Course I (Meadville) 3/31 and 4/9 Course I (St. Marys) 3/17 and 3/18 Course III (Williamsport) 3/24 and 3/25 Course IV 3/2 and 3/9 Course V (Kittanning) 3/3 and 3/4 Course V 3/30 and 4/6 Price: Member $230, Nonmember $325

Leadership for Team Leaders Course I 3/4 Price: Member $155, Nonmember $275

Food Safety Certification 3/15 Price: Member $125, Nonmember $175

HR Essentials: Compensation and Evaluation 3/17 HR Essentials: Compensation and Evaluation (Williamsport) 3/19 Price: Member $70, Nonmember $140

ComputerAccess Level I 3/31Access Level III 3/4 Computer Basics 3/3Excel 2007 Level III 3/25Excel Level I 3/11Excel Level III (Williamsport) 3/18Excel Level III 3/23Word Level I 3/8 Word Level I (Williamsport) 3/17 Price: Member $155, Nonmember $275

NEW EVENING COURSESExcel 2007 Level II (Two Evenings) 3/2 and 3/9Excel 2007 Level III (Two Evenings) 3/30 and 4/6Price: Member $155, Nonmember $275

Many of the Association’s Computer Training courses

qualify for Certified Professional Education (CPE) credits.

Executive BriefingThis two-hour Blue Ocean Strategy Overview provides participants with a basic introduction to the concepts, tools and methodologies behind blue ocean strategy/value innovation.

Module IThis one-day Blue Ocean Strategy Workshop provides participants with the building blocks to understand blue ocean strategy and it will likely provide them with a mindset change about how they view their competitive landscape. Prerequisite: Participants must have read Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.

For upcoming class information or to register, visit mbausa.blueoceanstrategy.com.

M A N U F A C T U R E R & B U S I N E S S A S S O C I A T I O N T R A I N I N G S C H E D U L E

May TrainingProfessional Development

Supervisory Skills Series Course I 5/13 and 5/20 Course II (Warren) 5/26 and 5/27 Course III 5/11 and 5/18 Course III 5/26 and 6/2 Course III (St. Marys) 5/19 and 5/20 Course V (Williamsport) 5/5 and 5/6 Price: Member $230, Nonmember $325

Leadership for Team Leaders Course III 5/6 Price: Member $155, Nonmember $275

Food Safety Certification 5/17 Price: Member $125, Nonmember $175

HR Essentials: Terminations 5/19 HR Essentials: Terminations (Williamsport) 5/21 Price: Member $70, Nonmember $140

ComputerExcel 2007 Level II 5/17 Excel 2007 Level II (Williamsport) 5/19 Excel Level I 5/13 Excel Level II 5/25 PowerPoint 2007 Level II 5/4 Word 2007 Level II 5/11 Word Level III (Williamsport) 5/20 Price: Member $155, Nonmember $275

QuickBooks 2007 5/28 Price: Member $175, Nonmember $295

Regional LocationsAll courses are held at the Manufacturer & Business Association Conference Center in Erie, unless otherwise noted.Erie: MBA Conference Center 2171 West 38th Street

Corry: Corry Higher Ed Council 221 North Center Street

Dubois: Dubois Diner 150 W. DuBois Avenue

Kittanning: Armstrong Educational Trust 81 Glade Drive

Meadville: Days Inn Conference Center Route 322

St. Marys: Community Education Council 4 Erie Avenue, Suite 200

Warren: Warren/Forest Higher Education Council Curwen Building, 2nd Floor 185 Hospital Drive

Williamsport: MBA Williamsport Office 2401 Reach Road

Onsite TrainingGet more flexibility and convenience with our onsite training options.

Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction.

Whether you need a half-day or full-day of professional -

ers come to you!

Course RegistrationContact Tracy Shepard at 814/833-3200, 800/815-2660 or [email protected] to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

WORD LEVEL III: “I was very impressed with the course. This was my first training here and I can’t wait for my next class.”

— Melissa DanowskiPresque Isle Downs & Casino

Module 2During this three-day “action learning” workshop, participants learn the advanced application of the blue ocean strategy/value innovation tools, methodologies and frameworks. The course is focused on experiential learning, whereby teams of participants work through the entire blue ocean strategy process in a highly condensed fashion, on an instructor-provided product or service. Prerequisite: Module 1.

Module 3This one-day Blue Ocean Strategy Workshop provides participants with the building blocks to understand how to validate, select, communicate and execute a successful and sustainable blue ocean strategy. Prerequi-sites: Modules 1 and 2.

For upcoming class information or to register, visit mbausa.blueoceanstrategy.com.

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Farmers National Bank has an extensive branch network that consists of 13 locations in eight counties of western Pennsylvania. The branch banking team includes, from left: Kathryn Sayers, Scott Patton, Larry Fledderman, Gretchen Decker and Aubrey Hulings.

Gregory J. Sorce, CFP®, MSFSManaging Principal

hbksorce.com11 offices located throughout Pennsylvania, Ohio and Florida

Achieving Your Life Goals

The Wright House235 West 6th Street

Erie, Pennsylvania 16507

Insurance products offered through HBK Sorce Insurance LLCInvestment Advisory Services offered through HBK Sorce Advisory LLC

Securities offered through Purshe Kaplan Sterling Investments, Member FINRA/SIPCHeadquartered at 18 Corporate Woods Blvd., Albany, NY 12211

HBK Sorce Insurance LLC and HBK Sorce Advisory LLC are not affiliated with Purshe Kaplan Sterling Investments

NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPLE. NOT INSURED BY ANY STATE OR FEDERAL AGENCY

Recent HBK Sorce Financial Awards / Recognitions:

CPA Wealth Provider’s Financial Planning Award ‑ 2009HBK Sorce Financial LLC was recognized as a winner in CPA Wealth Provider Magazine’s Sixth

Annual Financial Planning Awards.

CPA Wealth Provider Wealth Magnets ‑ 2008HBK Sorce Financial LLC and our parent company, Hill, Barth & King LCC, were recognized by

CPA Wealth Provider Magazine as one of the nation’s top CPA financial planning firms.

Bloomberg Wealth Manager Magazine ‑ 2007HBK Sorce Financial LLC was recognized as one of the Bloomberg Wealth Manager Magazine’s top

advisory firms (Top Dogs) in the country.

Joseph E. Kloecker, MBA, CPASenior Financial Advisor

Christopher Sorce, CFP®Managing Principal

Phone: (814) 459‑1116Toll Free: (800) 823‑0617Fax: (814) 459‑6499

Sound Financial Planning,Prudent Asset Management

Kevin Bannon, CFP®, ChFC, CLU, MSFSSenior Financial Advisor, Insurance Specialist

HR ConnectionSURVEY: STAFFS NEED SOCIAL MEDIA LIMITSA recent Robert Half Technology survey indicates that as businesses increasingly use Facebook and Twitter, a majority of business owners increasingly worry that employees log on for personal use during work hours.

Small-business owners are advised to restrict the use of social media in the workplace to business purposes, as 54 percent of respondents do this to increase the effectiveness of social media. According to researchers, by establishing boundaries, small-business owners might find social media can still be a successful marketing strategy for the new decade.

MAJORITY OF WORKERS SKIPPED VACATIONS FEARING JOB LOSSMore than two-thirds of Americans did

not take their full holidays in 2009 due to fear of losing their jobs and intense work pressure, according to a recent survey by Right Management, a division of consultancy firm Manpower.

However, the report finds, working without a break may lead to lower productivity and leave workers more vulnerable to medical conditions that may result in increased health costs.

Congress has acted and President Obama has signed, via the Fiscal Year 2010 Defense Appropriations Act, an extension to the eligibility period for the American Recovery and Reinvestment Act (ARRA) premium reduction for COBRA for an additional two months — through February 28, 2010. The maximum period for receiving the ARRA subsidy for COBRA (the Consolidated Omnibus Budget Reconciliation Act) also has been extended for an additional six months, from nine to 15 months. Individuals should contact their plan administrators or the health-care plan for information regarding this extension. If an employee has reached the end of the reduced premium period, they will have additional time to pay the reduced premiums of 60 days after the date of enactment or 30 days after their plan administrator has provided them notice of the extension. For more information, please contact me at 814/833-3200, 800/815-2660 or [email protected].

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

RevenueCosts

Margin

HealthierEmployees

A WELL-ROUNDED APPROACH TO A HEALTHIER BOTTOM LINE.

Your health plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered.

When you run a company, it’s important that your employees make healthy decisions. With Highmark’s Lifestyle Returns,®

they’re offered incentives to lead healthier lives — from eating right to getting in shape to managing stress — and given the online tools and resources to help reach their goals.They get a healthier lifestyle, you get a healthier, more productive workforce. And everyone gets a greater hand in your company’s health. From Highmark, where you’ll findthe most doctors and hospitals, outstanding coverage, more choices, and good value. Find out more at 888.286.8414 or highmarkbcbs.com.


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DEPARTMENTS > Contact: John Onorato

A group of people who share the same employer can be eligible to belong to a credit union. This is called a Select Employee Group (SEG).

At one time, credit unions were limited by regulatory interpretation to a single employee group (SEGs). To protect credit union members from the potential pitfalls that reliance on single employee groups could foster, regulations now permit credit unions to accept multiple SEGs into their membership. In addition, a company can create, or charter, its own credit union. Keep in mind, though, that chartering a credit union means forming a financial institution. It demands time, resolve and commitment from its organizers.

To find a credit union for your business, contact the Credit Union

National Association (CUNA) at 1-800-356-8010 or www.cuna.org. The league representative will identify credit unions that are interested in serving sponsoring groups similar to yours.

You can then contact these credit unions and ask them to make a formal presentation on how they would serve your employees. Most are eager to make this type of presentation.

In addition, you may wish to survey your employees, in advance, to determine their financial service needs and desires, so that you can ask the credit union representatives about specific services, and they can address your employees’ particular concerns.

After you choose a credit union

to serve the employees of your organization, the credit union will secure regulatory approval to add your employees to its field of membership and initiate a program to sign up new members at your business.

For more information, contact me at 814/833-3200, 800/815-2660 or [email protected].

What Should My Company Look for When Selecting a Credit Union for Employees?

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


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What Kind of Advocate Are You?

Ashley Borchilo is a government relations representative at the Manufacturer & Business Association.

OntheHill DEPARTMENTS > Contact: Sheila Sterrett

How many times have you read the newspaper or watched the evening news only to be fed up with the “politics” of Harrisburg or Washington, D.C.? When was the last time you heard that the business community must have a unified front when tackling issues such as taxes? Do you ever wonder how you can influence your legislators but feel overwhelmed and have no idea where to start?If you can relate to any one of these scenarios, then it’s time to take action. Become an advocate and join the 1,100 members of the Manufacturer & Business Association’s (MBA) advocacy coalition, Keep Pennsylvania Producing (KPP). KPP is YOUR Political Resource A division of the MBA’s Government Affairs Department, KPP is the MBA’s newest and most advanced grassroots initiative, which puts the opportunity to become an advocate at your fingertips. KPP exists to educate 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 of Pennsylvania.As a KPP member, your access to information and the opportunity to advocate on behalf of the business community grows exponentially. KPP helps bridge the gap between business owners and their legislators through the MBA’s Erie, Williamsport and Harrisburg offices, while offering tools and resources to assist business owners each step of the way.KPP Membership BenefitsAs a member of KPP, you can access our newly redesigned and expanded Web site, www.keepproducing.org. Here, you will find a myriad of resources available, including:

• Newsletters;• MBA Key Vote Program; • Capwiz online advocacy program;• Special invitations to events; • Access to member-only publications;• Public Forums to hold discussions with others on

A Call to Action for Business – Keep Pennsylvania Producing!

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issues relevant to the business community;• Action Alerts sent when the business community needs

you to advocate the most;• Social networking via Facebook and Twitter;• Opportunities to meet with legislators at district and Hill

visits;• “Get Out the Vote” information;• And so much more!

Are you still not sure if advocacy is right for you and your busy schedule as a business owner? The great thing is, you can be as active as your schedule allows. No matter what your level of advocacy, KPP exists as a way for the business community to influence legislators and legislation coming out of Harrisburg and Washington. Through its educational resources and events, the coalition aims to motivate its members to take action. Together, we can promote a unified, pro-growth, pro-business agenda. For more information regarding KPP, please contact Ashley Borchilo at 814/833-3200, 800/815-2660 or [email protected]. Register now for our KPP Webinar on Friday, February 26 by calling Tracy Shepard at 814/833-3200.


WE WOULD LIKE TO EX-PAND OUR BENEFITS PACK-AGE WITH A PROGRAM THAT WILL PROVIDE VALUE TO EMPLOYEES BUT WILL NOT IMPOSE EXCESSIVE COSTS. WOULD INSURANCE AGAINST IDENTITY THEFT ACHIEVE THESE GOALS?Identity theft insurance offers some compensation for the out-of-pocket costs of restoring a credit rating and cleaning up any judgments acquired by someone who has stolen an employee’s identity. Some plans also offer prevention programs and counseling assistance in cleaning up credit. The insurance can be either a

voluntary program or a fringe benefit.

WHAT TYPICAL COVERAGE IS INCLUDED?Coverage can include, but is not limited to: reimbursement for lost wages for time taken off work; reimbursement for long-distance telephone calls, postage, and notary fees used to restore credit; coverage for attorney fees to undo judgments entered against the victim, and criminal records incurred by thieves; information on preventing identity theft; and the assistance of a counselor to advise victims on how to go about restoring their credit rating.

HOW IMPORTANT IS THIS BENEFIT TO EMPLOYEES TODAY?Employees usually like the idea of identity theft insurance, and the cost to the employer is quite small. Since the major loss in the event of an identity theft is lost time, plans that include a counselor to guide victims through the process of restoring their credit can benefit both employer and employee alike. You should also be certain that the policy your company offers does not exclude coverage for identity theft committed by relatives or co-workers.

Legal Q&A

!e US Federal Trade Commission estimates that 9 million cases of identity theft take place per year in the USA alone and recommends that individuals defend themselves against identity theft by shredding financial documents before disposal. Also information privacy laws like FACTA, HIPAA and Gramm-Leach-Bliley Act are driving businesses to take steps to comply to avoid legal complications.

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DEPARTMENTS > Contact: John Onorato

In the wake of work-force reductions, here are five suggestions to help your organization steer clear of legal troubles:1. Carefully consider all salary cuts. Before reducing pay cuts, a company must first give fair notice to all employees. In addition, an employer must be careful not to cut exempt employees’ salaries below the level that makes them exempt. Finally, if a company has committed to reducing salaries, cuts must be made across the board. 2. Think before revoking vacation. For companies operating with only half of their previous staff, each employee’s time becomes twice as valuable, and it is far more difficult to offer vacation time. However, before denying a request for time off, a

company must make sure that its employee handbook clearly states that, “vacation is dependent upon the scheduling and needs of the employer.” If no such written statement exists, employees should have signed a contractual agreement predetermining their vacation hours.3. Mind your 401(k) matching. Before reducing matching payments to employees’ 401(k) plans, an employer must determine whether it is lawful to do so. Managers need to thoroughly examine their retirement plans, and find out if the decision not to match requires resolution by a trustee. 4. Honor lunch breaks and work hours. Employers must resist the temptation to overwork the individuals who are “picking up the slack” leftover from layoffs.

By honoring the state and federal laws regarding breaks, lunch breaks and work hours, a company can maintain high company morale and avoid nasty litigation in the future.5. Reimbursements. Employers should continue to reimburse employees for all work-related expenses. Failure to do so provides employees with an outright, justifiable reason to sue. Contact me at 814/833-3200, 800/815-2660 or [email protected] for more information.

Five Tips for Handling Work-Force Reductions

Attorney John Onorato is the vice president/general counsel at the Manufactur-er & Business Association. He assists member com-panies with their legal needs and HR questions.

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Loesel-Schaaf Insurance Agency, Inc. is an authorized broker for the MBA Eastern Alliance program.

Call Doug Loesel or Joe Parlak and find out.

814-833-5433www.LSinsure.com


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EventsAnniversary Awards Ceremony – Williamsport The Manufacturer & Business Association recently held its first annual Anniversary Awards Ceremony for central Pennsylvania member companies that are celebrating milestone anniversaries in 2010. Among the 47 companies honored were: Firetree LTD of Williamsport and Woodlands Bank of Williamsport, both 20 years in business; Ralph S. Alberts Co., Inc. of Montoursville and Williamsport Dies & Cut of Williamsport, 40 years in business; and Hess & Fisher Engineers Inc. of Clearfield, 110 years in business. For more photos, visit the Photo Gallery on www.mbausa.org.


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MANF Ad (1-10).indd 1 1/13/10 7:49:15 PM

In the face of rising energy, globalization and increased competition, there has been a quiet revolution in the way companies are revisiting the notion of teleworking. Recent advances in voice and data communications are redefining the very nature and form of work. Traditional workday activities are no longer tied to a specific time or location. In this new corporate scenario, employees across internal departments can now work collaboratively and access in-house knowledge distributed across remote locations — be it from home or across the globe.Reducing overheads, increasing productivity and efficiency of remote employees, and reducing carbon emissions are the core business benefits that stem from flexible teleworking. In fact, teleworker “plug-and-work” solutions give remote and mobile employees seamless secure access to the full set of “in-office” Unified Communications capabilities wherever they are, using an IP desktop phone or soft phone. Employees now have the flexibility to Hot Desk into their corporate extension or have a completely separate telework number.To ensure the deployment of secure external workspaces, there are Gateways available that ensure superior voice quality and provide comprehensive threat protection, strict access control, and privacy in a single consolidated server. These Gateways deliver the following co-resident services:

• Turns the IP desktop phone or soft phone device into teleworker mode.

• Can serve as an SIP (Session Initiation Protocol)-aware firewall at the edge of the

company network and eliminate the need for third-party firewall devices, simplifying configuration and deployment.

• Enables trusted connectivity between a company’s local area network and the public Internet to provide secure access for Unified Communications applications.

Telework as a Business Continuity StrategyTeleworker solutions provide companies with a backup strategy to continue business operations by enabling employees to continue to work from geographically remote locations; as such, that distribution provides a certain degree of resiliency. Teleworking enables continuity of operations during local weather disturbances or traffic congestion that prevent employees from being able to reach a central office location. It also can come in to play as a backup strategy in rare disaster or emergency health situations like a hurricane or an influenza pandemic.Local AccessThere also is a module available now that connects to an IP desk phone so teleworkers can enjoy the benefit of local analog line access from their teleworker IP phone. This module provides PSTN (public switched telephone network) failover should the link between the teleworker phone and the Gateway fail. This module also enables a user to select a local analog line via their IP phone for local, emergency or personal outgoing calls. Incoming calls to this analog line also can be received via the IP phone. This removes the need for two phones (analog home phone and IP phone) in your home office.Experience the Zero CommuteStudies indicate that employees

who telework tend to log on at the same time they would normally leave for work and log off when they would normally arrive home. Additionally, they suffer fewer disruptions at home and are able to handle messages in the evening or before returning to the office. In a business with 10 teleworkers, each could potentially generate an additional two hours of work per week, resulting in more than 1,000 hours, or one month, of increased productivity in a single year.Telework as a Tool to Recruit and Retain Key TalentIncreasing fuel costs combined with worsening traffic has begun to prompt employees to look to their companies to provide relief and in some cases think about changing jobs to improve their commutes. The teleworker solutions available today deliver increased flexibility to hire hard to find out-of-region talent, thus lowering human resource and labor costs. According to a study by the Consumer Electronics Association, two out of five employed U.S. adults work from home at least one day a month. For information, visit www.ecsinc.us.com or call 800/837-5790.

Tech NewsEDITORIAL > by Jeff Lytle

Jeff Lytle is a sales representative for Electronic Commu-nication Services (ECS) located in Erie County. ECS has been in the telecommunications business since 1989.

Teleworker Solutions Provide Greater Flexibility, Productivity


CULBERTSON, WEISS, SCHETROMA AND SCHUG, P.C. EXPANDS LEGAL TEAMAttorneys Megan A. Mariani and Zahava A. Cheropovich recently passed the Pennsylvania Bar Examination and became Of Counsel to the regional law firm Culbertson, Weiss, Schetroma and Schug, P.C. They join Attorneys Mathew L. Sampson, W. Marc Reese and Marygrace L. Reese as examining attorneys in the Oil and Gas Title Division of the firm’s Energy Law Practice Group.

Additionally, Adam K. Curtis has joined the firm as a paralegal. Curtis will work in the firm’s Litigation, Energy and Business Services practice groups. He earned his bachelor’s degree in political science from Penn State Behrend in 2005 and his certificate of completion in Legal Studies from Gannon University in 2009.

ALBERSTADT NAMED PRESIDENT OF ERIE BAR ASSOCIATIONMacDonald Illig senior partner J.W. Alberstadt, Jr. has been named president of the Erie County Bar Association in 2010. Alberstadt acted as a director and vice president of the Erie County Bar Association in 2009 and has been on the Board for the past four years.

He concentrates his practice in the areas of real estate, commercial and economic development, and estate planning and administration, repre-senting individuals, business entities, lending institutions, municipal au-thorities and development agencies.

Alberstadt handles matters ranging from residential real estate transac-tions to detailed title and develop-ment issues. He also provides repre-sentation in commercial financings and tax-exempt municipal, industrial development and 501(c)(3) bond issues.

BUSINESS APPLICATIONS SPECIALIST TO LEAD EBIZITPA Ron May has been appointed the new executive director for the Center for eBusi-ness and Advanced IT (eBizITPA), which assists Pennsylvania businesses and organizations with understanding, using and developing information technologies to grow the economy. May brings more than 30 years of information technology expe-rience in small and large businesses, as well as national and multinational corporations.

AMERICAN TURNED PRODUCTS ANNOUNCES STAFF PROMOTIONS American Turned Products (ATP), a manufacturer of precision metal components, has promoted two employees:Geri Lyn Kolb is now plant manager of the company’s Fairview, Pennsylvania, facility and is responsible for direction of all plant activities to obtain optimum efficiency and performance. Kolb has been with ATP for 11 years and most recently held the position of director of Technical Applications. She is a graduate of Penn State University where she earned both her bachelor’s degree and MBA.

Julian Torres was named corporate quality manager for both ATP facilities in Erie and Fairview and is responsible for directing the

company’s quality system to ensure the production of quality products and maintaining the company’s TS16949 certification. Torres has been with ATP for six years and previously held the positions of manufacturing engineer and program manager. He is a graduate of RIT and earned his MBA from Penn State University.

PA INDEPENDENT AUTO DEALERS ASSOCIATION ELECTS PRESIDENT Andrew Gabler, prin-cipal of Lakeside Auto Sales and Service in Erie, has been named president-elect of the Pennsylvania Inde-pendent Auto Dealers Association (PIADA), headquartered in Harrisburg. Gabler also represents Pennsylvania as chairman of the legislative committee for the National Independent Auto Dealers Associa-tion (NIADA), headquartered in Texas, representing over 14,000 dealers nationwide. He is one of only three Certified Master Dealers in Pennsylva-nia and has been an active Pennsylva-nia Dealer since 2000.

STAIRWAYS’ STUCKE RECEIVES PARTNERSHIP AWARDKim Stucke, director of Housing Consultation Services for Stairways Behavioral Health in Erie, was selected by the Housing Alliance of Pennsylvania to receive the Partnership Award at the Homes Within Reach Conference awards luncheon in Harrisburg.

Stucke was nominated and selected for her lifetime achievement in devel-oping housing and related services for persons with mental illness and others who are homeless. Her work has brought millions of housing dollars to Erie County and has made a difference at regional, state and national levels.

People Buzz EDITORIAL > Contact: Karen Torres


EDITORIAL > by Angie Angus

Angie Angus is the manager of BOS Programs and Support Services.

This is the first in a series of articles that will feature excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne.

“Look back one hundred years and ask yourself, How many of today’s industries were then unknown? The answer: Many industries as basic as automobiles, music recording, aviation, petrochemicals, health care, and management consulting were unheard of or had just begun to emerge at that time. Now turn the clock back only thirty years. Again, a plethora of multibillion-dollar industries jumps out – mutual funds, cell phones, gas-fired electricity plants, biotechnology, discount retail, express package delivery, minivans, snowboards, coffee bars, and home videos, to name a few. Just three decades ago, none of these industries existed in a meaningful way.

Now put the clock forward twenty years – or perhaps fifty years – and ask yourself how many now unknown industries will likely exist then. If history is any predictor of the future, again the answer is many of them.

The reality is that industries never stand still. They continuously evolve. Operations improve, markets expand, and players come and go. History teaches us that we have a hugely underestimated capacity to create new industries and re-create existing ones. In fact, the half-century-old Standard Industrial Classification (SIC) system published by the U.S. Census was replaced in 1997 by the North America Industrial Classification Standard (NAICS) system. The new system expanded the ten SIC industry sectors into twenty sectors to reflect the emerging realities of new industry territories. The services sector under the old system, for example, is now expanded into seven business sectors ranging from information to health care and social assistance. Given that these systems are designed for standardization and continuity, such a replacement shows how significant the expansion and the blue oceans have been.

Yet the overriding focus of strategic thinking has been on competition-based red ocean strategies. Part of the explanation for this is that corporate

strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply imbued with military references – chief executive ‘officers’ in ‘headquarters,’ ‘troops’ on the ‘front lines.’ Described this way, strategy is about confronting an opponent and fighting over a given piece of land that is both limited and constant. Unlike war, however, the history of industry shows us that the market universe has been never been constant; rather, blue oceans have continuously been created over time. To focus on the red oceans is therefore to accept the key constraining factors of war – limited terrain and the need to beat an enemy to succeed – and to deny the distinctive strength of the business world: the capacity to create new market space that is uncontested.”

Most businesses use terms such as unprecedented global competition, declining markets, increasing structural costs and a declining economy to explain their companies’ economic challenges. While each of these factors, among others, is, in fact, negatively impacting business operations, they do not determine a company’s failure or success. Like everything in life, it’s not what happens to you, it’s what you do about it that determines your failure or success.

History teaches us that some of the world’s greatest inventions and opportunities emerged during difficult, if not impossible, economic times. Today, there is a blueprint that helps a company not only navigate through red oceans, but completely break free from overcrowded industries fighting over shrinking profit pools.

Blue Ocean Strategy is game changing in arguing that, tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ripe for growth. Such strategic moves – termed “value innovation” – create powerful leaps in value for both the firm and its buyers, rendering rival obsolete and unleashing new demand.

Next month: Value innovation – the cornerstone of Blue Ocean Strategy.

If you’re interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa.blueoceanstrategy.com or contact me at [email protected].

A Blueprint for SuccessSome of the world’s greatest inventions emerged during difficult times


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