October 2012 Business Magazin

BUSINESSM A G A Z I N E

VOLUME XXV, NUMBER 10 OCTOBER 2012Manufacturer & Business Association

SPECIAL ISSUE:

Made In PA

Family Effort Molds Manufacturer’s Reinvention, Global Success / Page 14

Reddog Industries

612 S Kendall Ave. Bradford, PA 16701 | www.btcoatingservices.com | 814-368-7199

High PerformanceConcrete Coatings

Call us for a free consultation.

1-800-249-5656

Company name: Beacon Lubricants

Address: 11170 Edinboro Road

Edinboro, PA 16412

Phone: 814/734-7535

Website: [email protected]

President: Patrick M. Huntley

Founded: 1995

Number of Employees: Seven

Industries Served: Industrial, commercial,

automotive

Specializes in: Manufacturer of industrial oils,

metal working !uids, automotive lubricants and

greases. All products are available in various

industry sizes.

Company Name: American Turned Products

Address: 7626 Klier Drive, Fairview, PA 16415

Phone: 814/474-4200

Website: www.atpteam.com

President: Gerald B. Eighmy

Founded: 1984

Number of Employees: 125

Industries Served: Automotive, !uid power,

electric and gas

Specializes in: Contract precision CNC and rotary

transfer machining of ferrous and

non-ferrous metals.

Company Name: Solar Atmospheres of Western PA

Address: 30 Industrial Road, Hermitage, PA 16148

Phone: 724/982-0660

Website: www.solaratm.com

President: Robert Hill

Founded: 2001


Industries served: Aerospace, medical, power

generation and many more.

Specializes in: Vacuum heat treating of large,

mainly titanium, manufacturing parts. Furnaces up

to 36 feet long, 10-20 bar quenching, Fluorescent

Penetrant inspection. ISO9001 / AS9100, Nadcap,

SHARP, ITAR.

Company Name: Matric

Address: 2099 Hill City Road, Seneca, PA 16346

Phone: 814/677-0716

Website: www.matric.com

President: Richard E. Turner, Jr.

Founded: 1971


Industries Served: Energy, industrial controls,

medical devices, communications, aerospace,

transportation and heavy machinery

Specializes in: Electronic contract

manufacturing services (PCB to full turnkey),

engineering design, aftermarket service,

cable assembly (including overmold), and

electromechanical assembly (box build)

Made PA

20 < www.mbabizmag.com < October 2012

28

FEATURES > 3 / For What It’s WorthAssociation President Ralph Pontillo explains how capitalism has increased individual freedom and opportunity far more than any other economic system in history.

14 / Reddog IndustriesThrough numerous capital improvements and innovative manufacturing techniques, Reddog Industries is an example of reinvention at its best. Learn how the Hilbert family has transformed the Erie-based operation from a mere tool-and-die company to a world leader in the design and production of a vast array of tooling applications and specialized machining.

24 / On the HillOn November 6, Pennsylvania voters will decide who will represent them in their respective districts for a two-year term in the U.S. House of Representatives. To help determine the best choice for office, the Association recently asked the candidates in Congressional Districts 3, 5, 10 and 12 what they would do to improve Pennsylvania's business climate, if elected.

28 / Events See exclusive photos of our more than 100 professional development and computer training graduates.

DEPARTMENTS > 4 / Business Buzz22 / HR Connection

26 / HR Q&A32 / People Buzz

EDITORIAL > 7 / Health Matters Why value-based networks are increasing in popularity to help contain health-care costs.ANDREA GIOIA

9 / Legal BriefUnderstanding and benefiting from Pennsylvania’s natural gas boom.TOM PENDLETON

11 / Financial AdviserWhat employers need to ask when assessing narrow network plans.JIM MCKIBBEN

October 2012 14

Read on the Go!For the most current Business Magazine updates or to register for a digital subscription, visit www.mbabizmag.com. Be sure to also fan us on Facebook and follow us on Twitter!

SPECIAL SECTION >19 / Made in PARead the profiles of some of the region's most dynamic manufacturers and their areas of specialization.

5

October 2012 > www.mbabizmag.com > 1

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Main/Interchange O!ce 2035 Edinboro Road • Erie, PA 16509

Phone (814) 866-4194 • Fax (814) 864-0957

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Capitalism is often defined as an economic system that is based on private ownership of the means of production and the creation of goods or services for profit.

In today’s political environment, capitalism is under attack by those who believe that this “economic system” based on “private ownership of the means of production” and the creation of goods and services for “profit” is creating class warfare in America.

Their argument that capitalism is the root cause of class conflict fails the test of logic.

The United States of America was founded on the principle of individual freedom through representative democracy. We are a nation of free people — people who have the right to engage in commerce and earn a profit — and we’re free to live our lives as we see fit. Some of us pursue great wealth, fame and fortune; some of us pursue a chair, a back porch and a six-pack.

Bill Gates was not born a billionaire. He produced a product that people wanted or needed at a price they were willing to pay. People who fan the flames of class conflict would have us believe that the more money Bill Gates makes, the less money there is for the rest of us. If that logic held true, then how did Bill Gates become a billionaire?

Capitalism is not a zero-sum game. That argument is right up there with the now-famous quote by Charles Duell, former commissioner of the U.S. Patent Office, who in 1899 said, “Everything that can be invented has been invented.”

Simple, basic research will provide you with a definition of every type of social economic system devised by man, and each is a documented failure with the exception of one — capitalism and a representative democracy.

Socialism, communism and fascism all are documented failures. Capitalism has increased individual freedom and opportunity far more than any other economic system in history, and, in turn, has provided more people with a higher standard of living.

Young people today are taught that a great society is built on a political system that guarantees equality of outcome, rather than an economic system that guarantees equality of opportunity. To an individual who does not understand the basis of individual freedom and capitalism, the difference may seem subtle. In truth, the difference is profound. It is the difference between government control and individual freedom. Noble Prize-winning economist Milton Friedman illustrated this fact brilliantly in his book and TV series, Free to Choose.

There are some elite politicians who argue that in order to achieve social justice, they must take from the “haves” and redistribute it to the “have-nots.” It is a new vision for America, one that will provide a guarantee of equal outcomes. What they don’t tell you is that it comes at a very high price — the loss of individual freedom. As Freidman said, “The society that puts equality before freedom will end up with neither. The society that puts freedom before equality will end up with a great measure of both.”

Ralph Pontillo is the president of the Manufacturer & Business Association.

Capitalism is Not a Zero-Sum Game

EDITORIAL > by Ralph Pontillo

VOL. XXV, NO. 10 OCTOBER 2012

© Copyright 2012 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 Joel BerdineAssociation Board John Clineof Governors Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Communications Jessica McMathis Specialist [email protected]

Contributing Andrea Gioia Writers Jim McKibben Tom Pendleton

Feature Photography Ron Stephens La Mirage Studio 814/835-1041

Photography Jessica McMathis Karen Torres

Advertising Sales Patty Welther 814/833-3200 or 800/815-2660 [email protected]

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

ON THE COVER: The second generation of the Hilbert family — brothers Bill Jr., John, and Joseph — have embraced their father’s entrepreneurial spirit and business sense in three diverse operations, including the reinvention and global success of Reddog Industries in Erie. For full story, see page 14.

For What It’s Worth


NATIONAL MANUFACTURING DAY SCHEDULED FOR OCTOBER 5In the spirit of less talk, more results, Manufacturing Day is being championed by dozens of organizations. It will be celebrated on October 5 with plant tours and open houses at as many manufacturers as possible across the country.Studies by the nonprofit Manufacturing Institute and others show that almost 80 percent of Americans believe manufacturing is important to our economic prosperity, standard of living and national security. Yet only 30 percent would encourage their children to go into manufacturing as a career. And, according to Ed Youdell, president and CEO of the Fabricators and Manufacturing Association (FMA), “October 5 is dedicated to celebrating the great work and innovation of the 12 million men and women who make the United States the world’s largest manufacturing economy.”

Business BuzzCOUNCIL TO GOVERNOR: LACK OF TALENTED, HIGHLY EDUCATED WORK FORCE IS TOP CONCERNThe 24-member Governor’s Manufacturing Advisory Council (GMAC), whose work was designed to help strengthen the manufacturing sector, recently sent its recommendations to Pennsylvania Governor Tom Corbett and the state Legislature, listing the lack of a talented and highly educated work force as its top concern.

In January, Governor Corbett had charged the nonprofit group Team Pennsylvania Foundation to lead the council to “identify and prioritize top issues that can help influence, sustain and advance that sector in the Commonwealth.” Manufacturing adds $75 billion to the state’s economy annually, according to state statistics.

Co-chaired by Department of Community and Economic Development Secretary C. Alan Walker and Carlos Cardoso, chairman, president and CEO, Kennametal Inc., Latrobe, the council gathered information about challenges facing the industry from industry experts and manufacturers and compiled its findings over a six-month period beginning in January.

The 24-member council consisted of a diverse array of manufacturing interests and companies located throughout the Commonwealth. Local business leaders serving on the council included: Samuel “Pat” Black, president and CEO of Erie Management Group, Erie; David Barensfeld, president and CEO of Ellwood Group Inc., Ellwood City; Jim Rutkowski Jr., vice president of Industrial Sales & Mfg., Erie; Greg Booth, CEO of Zippo Manufacturing Company, Bradford; and Manufacturer & Business Association President Ralph Pontillo, Erie.

To read a copy of the full GMAC report, background on the council’s work and a list of council members, visit the Team Pennsylvania Foundation website at www.teampa.com/manufacturingcouncil.

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High schools, colleges, local chambers of commerce, unions, trade associations, government entities, and manufacturers

are urged to work together to propel U.S. manufacturing to the next level.

To learn how your business can get involved, visit www.mfgday.com.

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FMC TECHNOLOGIES, PENN STATE BEHREND DEDICATE ENGINEERING DESIGN CENTERA $500,000 expansion at FMC Technologies Measurement Solutions, an Erie-based manufacturer of precision metering products for the oil and gas industry, will provide hands-on job training — and job offers — to engineering students at Penn State Erie, The Behrend College.The new, 2,000-square-foot engineering Design Center will boost the Erie division’s role in FMC Technologies’ global subsea engineering work. When fully staffed, the center will employ 12 student interns from Penn State Behrend. Students will spend 20 hours each week at FMC Technologies, with the option of working full-time during the summers.The center builds on a 10-year partnership between FMC Technologies and Penn State Behrend, during which time the college has provided 30 interns to FMC Technologies’ engineering department. Seventeen went on to accept full-time positions at the company after graduation.FMC Technologies, which is experiencing unprecedented growth, expects to hire approximately 8,000 people at its global sites over the next five years. The engineering Design Center will funnel local talent into that jobs pipeline.“This partnership with FMC Technologies is a progressive model of collaboration between industry and academia,” said Dr. Ralph Ford, director of the School of Engineering at Penn State Behrend. “It will provide invaluable practical experience and professional growth for our students, preparing them well to compete globally.”For more information, visit www.fmctechnologies.com or behrend.psu.edu.

From left: Dr. Ralph Ford, director of the School of Engineering at Penn State Behrend; Dr. Donald Birx, chancellor of Penn State Behrend; Brad Beitler, vice president of technology, FMC Technologies; John Gremp, chairman and CEO of FMC Technologies; and Dale Sumpter, president of FMC Technologies Measurement Solutions.


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Employers looking to reduce health-care costs and lower premiums for their employees have considered many options available to them from health insurers in recent years. One such option that has been around for some time, but is becoming increasingly popular is the concept of “value-based” networks for providers. Value-based networks are also known as “select” or “tiered” networks.Value-based networks are an attempt by insurers and employers to contain costs by encouraging employees to utilize more efficient providers — meaning hospitals or physicians — by either streamlining networks, or by lowering co-payments or deductibles for providers in different tiers in the network. The health insurer determines which tier the providers fall into based on certain criteria. These criteria can include the cost of care, the efficiency of the care they deliver, as well as the quality of care provided.When services at a certain provider cost an insurer less, those savings can be passed directly to the consumer in the form of a lower cost-share requirement.Value-based networks were created in response to demand from employers and consumers that costs come down along with premiums. These products are also a response to the need for more consumer-driven options. The concept of value-based networks is a variation of the long-established practice of health insurers offering one level of benefits to members who use in-network providers and another level of benefits for those who use out-of-network providers. The difference is members can choose the providers they prefer based on the criteria that are most important to them. The tiered concept has been long established in

the area of prescription drug coverage where generic drugs are on one tier while brand name drugs are on a tier that requires a higher co-payment. An additional tier contains “non-preferred” or “non-formulary” drugs that require an even higher payment. Why Value-Based Networks Are Increasing in Popularity • Increased choice. Value-based provider networks allow employers and insurers to include all or most providers in their plans, as opposed to the limited choices historically provided by HMOs. • More engaged consumers. Being exposed to higher out-of-pocket expenses gives employees more of an incentive to be involved in choosing providers and treatment and in determining value in health care.• Competitiveness. Value-based networks could motivate some providers to cut costs in order to stay off higher-priced tiers.• Lower prices. Estimates indicate that tiered products, on average, are priced at 10 percent to 15 percent lower than non-tiered PPO and HMO products.The Potential of Value-Based NetworksOne of the goals of a value-based network is to engage consumers in making informed decisions about their health care. A value-based network could improve care coordination and management of chronic conditions, as well as foster improved compliance with clinical guidelines. The value-based network provides the framework for that to happen without restricting consumer choice. When a provider’s tier is tied to quality, the potential is there for networks to encourage better value and to ultimately drive providers to perform better and more efficiently.

As cost and quality information becomes more available to consumers of health care, the more likely it will be that consumers will base their health-care decisions on this information. This has the potential to drive change in health care in a positive direction. Plans that include fewer providers are more likely to appeal to consumers shopping for their own budget-conscious coverage since they may only need to check the availability of their own providers, rather than the whole network.(See this month’s Financial Adviser article on page 11 for information on how to assess narrow networks for your organization.) Persons interested in UPMC Inside Advantage, a value-based network plan for northwest Pennsylvania, priced up to 20 percent lower than non value-based plans, should visit www.upmchealthplan.com/employers/insideadvantage.html, or call 877-563-0292 and speak one-on-one with a UPMC Health Plan sales representative.

Value-Based Networks Viewed as ViableOption to Help Contain Health-Care Costs

Health MattersEDITORIAL > By Andrea Gioia

Andrea Gioia is executive director for Product Innovation for UPMC Health Plan, which is part of the integrated partner compa-nies of the UPMC Insurance Services Division. These include UPMC Work Partners, LifeSolu-tions, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and offer a full range of insurance programs and products.


For more than 20 years, National Fuel Resources, Inc. (NFR) has provided thousands of businesses in Pennsylvania and New York with competitively priced natural gas solutions tailored to specifi c customer needs.

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THE NATURAL GAS SOLUTIONS YOUR BUSINESS NEEDS, THE EXPERTISE IT DESERVES.

NATURAL GAS SUPPLY CHARGE73-75%*

DISTRIBUTION CHARGE25-27%*

NATURAL GAS SUPPLY CHARGEThe price for the natural gas itself— this segment makes up the largest portion of your costs.

DISTRIBUTION CHARGEThe cost the local Utility charges to deliver the natural gas to your business.

YOUR NATURAL GAS COST BREAKDOWN

NFR’s expertise will help provide you with a cost-effective plan for your natural gas supply.

Give your business the individual attention it deserves.

NFR can supply you with the natural gas rather than the Utility—which can ultimately help your business control its natural gas costs.

The following disclaimers are required by PA law (52 Pa. Code § 62.142): NFR is not the same company as National Fuel Gas Distribution Corporation (“NFGDC”). Both NFR and NFGDC are owned by National Fuel Gas Company (NYSE:NFG), a publicly traded company. NFR’s prices are not regulated by the Pennsylvania Public Utility Commission. You do not have to buy natural gas or other products from NFR to receive the same quality of service from NFGDC.

*Typical percentage

Pennsylvania continues to experience an increasing amount of natural gas drilling activity. As the focus of these efforts shifts from the Marcellus Shale to other shale formations such as the Utica Shale, areas of Pennsylvania that missed out on the Marcellus gas boom, such as the northwest part of the state, are now receiving increasing attention from drillers. This increased natural gas drilling activity presents opportunities and challenges to landowners, business owners and those who want to efficiently pass assets related to oil and gas drilling to future generations. This article summarizes some of the legal issues faced by each of these groups.

Landowner IssuesOil and gas leases are complicated binding contracts that use terminology unique to this industry. Signing an oil and gas lease can involve issues ranging from income taxes related to the upfront bonus payment and periodic royalty payments; environmental issues, such as water quality and erosion control; and real estate property taxes related to programs such as the Clean and Green Program. These issues can become more complicated if one person owns the mineral rights and a separate person owns the surface rights.

Considerations for Business OwnersThe shale gas and deep conventional wells currently being drilled comprise industrial operations covering several acres in size. These wells offer businesses the opportunity to sign contracts for activities

involving the sale of steel, concrete and other equipment; disposal of water; and other matters. Because of their complexity, however, these business opportunities come with a substantial amount of risk.

Therefore, businesses that sign contracts covering goods and services provided at natural gas well drilling sites should carefully review provisions that limit liability, create warranties and require one party to indemnify the other in the event of loss. Although many people consider these provisions to be the “boiler plate” in a contract, they could have serious consequences if they are not drafted properly or if the party signing the contract does not understand what they mean.

Estate Planning ConsiderationsBecause shale gas leases can provide for bonus payments of several thousand dollars per acre and a substantial stream of royalty payments once production begins, at least in the early years of the well, owners of mineral rights can experience a substantial increase in income. As with any situation that generates wealth, passing that wealth onto future generations creates potential gift tax and estate tax issues.

With proper planning, these tax issues can be minimized, or at least planned for, so that the resulting tax liability does not create a financial hardship for the family. In some situations, it makes sense to create a limited liability company to hold the mineral rights so that they can be distributed and effectively managed.

Likewise, mineral rights can be gifted to future generations of family members in ways that reduce taxation. Alternatively, older family members can use the proceeds of royalty payments to pay college expenses of grandchildren as well as nieces and nephews in order to share the benefits of the natural gas found underneath their property.

ConclusionThe situation confronting each family or business will be different. Therefore, it is important to discuss your particular situation with an experienced professional who can address each of the unique legal and financial situations involved. Addressing the risks ahead of time can eliminate surprises and reduce the resulting tax burden.

For further information, contact Tom Pendleton at MacDonald, Illig, Jones & Britton LLP at 814/870-7756 or [email protected].

Thomas A. Pendleton is a partner with MacDonald, Illig, Jones & Britton LLP and has been represent-ing businesses, non-profit corporations and individuals in a wide variety of legal matters for more than 15 years. He is a graduate of the Vanderbilt University School of Law.

Legal BriefUnderstanding and BenefitingFrom Pennsylvania’s Natural Gas Boom

EDITORIAL > By Tom Pendleton


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When confronting health plan costs that are rising too fast, employers and their brokers have employed a variety of tools — adjusting benefits, changing employee contributions, adopting consumer driven plans, implementing wellness programs, and, most importantly (particularly over the last two years), aggressively shopping the market to en-courage competition among insurance carriers. Each em-ployer has to determine the extent and effectiveness of each particular option.Now another tool is available, as discussed in this month’s Health Matters article (see page 7), known as Narrow Networks. Narrow Networks, also called Tiered Networks, Tailored Networks and High Performance Networks, provide traditional levels of coverage but only for a narrower or reduced number of hospitals, physicians and other providers. Access is still available to other providers, but at higher costs in the form of deductibles and co-insurance. Two major health plans have introduced Narrow Network products in northwestern Pennsylvania during 2012 and you should expect to see them at renewal time along with your traditional plan.Early numbers indicate that the price advantage of a

Narrow Network plan will be approximately 15 percent lower than a traditional Open Access PPO plan. This represents a significant amount of money and will certainly capture the interest of many employers.Is a Narrow Network Plan the Right Answer for Your Employees?For an employer to determine the viability of a Narrow Network Plan for their employees, they will need to assess the following:• Which insurance company’s Narrow Network plan do I offer? Am I comfortable as to the quality of medical care and access to providers within each network? Note: This is not a question employers in western Pennsylvania previously had to answer.• To what extent will I experience pushback from my employees? A certain portion of the work force will experience disruption in their medical care. If the hospitals and physicians they and their family have traditionally seen are not included in the Narrow Network, how will they respond? • If my company adopts a Narrow Network plan, how will the premium savings be treated? Will all of it be captured at the company level to offset health plan costs? Or will it be

necessary to pass some portion of the savings on to employees to offset any negative feelings they might have as a result of disruption of their provider networks?The health insurance marketplace is continuing to change rapidly. We will have to wait for the results of November’s general election to know the ultimate form of the Patient Protection and Affordable Care Act. For most employers, health insurance costs continue to be one of the largest and fastest-growing items on their budget. It will take ever-increasing skills for employers to manage these challenges effectively. For more information, please contact Jim McKibben at Lillis, McKibben, Bongiovanni & Co. at 814/452-4085 Ext. 231 or [email protected].

Jim McKibben is a partner at Lillis, McKibben, Bongiovanni & Co., an Erie-based group benefits firm. He is a member of the Society of Financial Service Professionals and National Association of Insurance and Financial Advisors-PA.

Assessing Narrow Networks: What Employers Need to Ask

EDITORIAL > By Jim McKibben, CLU

Financial Adviser


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From left to right: Scott Gezymalla, Andrew Lincoln and Jeremy Lincoln

Howard and Barney Lincoln at Lincoln Metal in 1973.

For nearly half a century, the Hilbert name has been synonymous with success in manufacturing. Bill Hilbert Sr. laid the foundation as an apprentice tool-and-die maker turned businessman, who in 1971 became a partner in ownership of Rite Precision Co. that would after several years come to be known as Reddog Industries. Bill Sr. eventually went on to become a founding partner of PHB Inc. when Parker White Metal was acquired — companies of which he is the current chairman and CEO.

Today, the second generation of the Hilbert family — brothers Bill Jr., John, and Joseph — have embraced their father’s entrepreneurial spirit and business sense in three diverse operations.

Bill Hilbert Jr. is president of Erie-based Reddog Industries, a global provider of tooling and specialized machining, while John serves as president of the Fairview-based PHB, a complete manufacturing resource of high quality parts for the nation’s OEMs. Youngest brother Joseph is president and owner of Pulakos Chocolates, Inc., a venerable institution in northwest Pennsylvania’s candy making industry.

“Our success is due to unconditional trust and maintaining the highest levels of professional integrity,” explains John. “Our parents taught us that family is everything, and you always have each other’s back.”

Brothers Bill and John worked together at Reddog for 25 years before John migrated to lead the family’s manufacturing effort at PHB; Joseph worked with his brothers at Reddog for 17 years, serving as vice president of purchasing where he not only assisted with implementing the company’s ambitious expansion plan, upgrading systems and instituting a new contract buying program, but also gained the training he needed to tackle his new venture at Pulakos.

“The things that I learned while at Reddog cannot be taught in the classroom,” states Joseph. “Hands-on experience and my family’s support

of every critical decision allowed me to enjoy considerable success.”

According to Bill Jr., there is no harder job on earth than working for your father. “The success we encountered going forward was a true team effort. My brothers and I led by the example my parents set, and rarely disagreed about decisions regarding the business,” he says. “We shared a unique ability to trust each other’s decisions and give one another room to grow and be successful in our own way.”

Consequently, it is this vision and commitment — and family effort — that have fueled the evolution and reinvention of the Hilbert’s longtime company Reddog Industries.

Time for a ChangeThroughout most of its history, Reddog, located on Erie’s east side, was largely known for its tool-and-die expertise, supplying high pressure plastic injection molds and high quality aluminum die-cast dies used by a long list of Fortune 500 companies.

These molds and dies produce anything from housewares and storage products, power tools and accessories, sporting goods, toys, safety equipment, electronic and electrical products, to automotive and transportation components, telecommunication products, medical devices, and military and aerospace components.

However, as manufacturers like Steris and International Paper closed or moved away and globalization took customers to places like Asia and India, the Hilberts turned their attention to keeping Reddog relevant and competitive in the global marketplace.

“We realized the need for a significant change,” says Bill Jr. “We had to reinvent the company to maintain a healthy existence.”

Through numerous capital improvements and innovative manufacturing techniques, what has emerged is a 100,000-square-foot operation that is

Family Effort Molds Manufacturer’sReinvention, Global Success

Reddog Industries is widely recognized for its tool-and-die expertise, supplying high pressure plastic injection molds and high quality aluminum die-cast dies used to produce a variety of consumer and commercial products. The 100,000-square-foot facility in Erie (shown above) utilizes state-of-the-art machining centers to provide uncompromising quality, as well as access to a team of engineers with significant experience in product design, injection mold and die-cast die design, and specialized machining applications.


more than a mere tool-and-die company, but a world leader in the design and production of a vast array of tooling applications.

Bill Jr. goes on to explain that, “Over the past 12 years we have been able to position ourselves strategically to have the capability to service even more effectively the plastics industry, die-cast industry and most recently — and now a very significant piece of what we do — specialized machining.”

Becoming Globally CompetitiveA key component to becoming globally competitive was the adaptation of lean principles. Reddog strategically downsized and developed a multi-tasking philosophy that led to greater manufacturing efficiency. This increased utilization of manufacturing assets allowed for significantly improved lead times.

“A quick delivery combined with a reputation of impeccable quality,” notes Bill Jr., “is key to winning the order.”

Flexibility and 24/7 service have been vital to Reddog’s success. According to the company, Reddog achieves high quality and shorter lead times by having the ability to control every part of the manufacturing process from design to production. The company’s in-house engineering team works hand in hand with the production team to customize orders for their worldwide clients.

“We are a combination of engineering and manufacturing,” says Bill Jr. “Our ability to service customers unconditionally and offer aggressive lead times is the direct result of an excellent staff.”

Reddog not only offers onsite manufacturing capabilities but also connects to local and regional manufacturing resources that assist with offering customers a more economical solution. “The key to success is the willingness to reinvent your company,” adds Bill Hilbert Jr. “A clear >

About: The 100,000-square-foot facility is more than a tool-and-die company, but a world leader in the design and production of a vast array of tooling applications as well as specialized machining services.

Headquartered: 2012 East 33rd Street in Erie, Pennsylvania

History: Began as Rite Precision Co. in 1971 and evolved into Reddog Industries / A Hilbert Company.

Complete tooling services include: product design, plastic injection mold and die-cast die design and construction, mold and die revision and repair, specialized machining.

Markets served: consumer and commercial appliances, electronic / electrical products, automotive and transportation components, industrial and nuclear flow control devices, telecommunications, medical devices, and military and aerospace components, consumer packaging and storage products, beverage bottling industry, power tools and accessories, sporting goods and recreational products, lawn and garden products, and toys and safety equipment.

Industry Recognition: Ranks among the 25 largest manufacturers in its respective market.

Website: www.reddog-erie.com

Phone: 814/898-4321

Fax: 814/899-5671

Email: [email protected]

Ries spotting presses assure mold and die-parting line integrity before validation begins in the injection-molding machine or die-casting press. Many customers would have to travel more than 300 miles to locate the resources of Reddog’s lift capacity and machine capability.


understanding of local, regional, and global opportunities is necessary to compete in today’s economy.”

In doing so, Reddog continues to respond to the changing demands of the plastics and die-casting industries. According to the company, one of the most dynamic services that Reddog offers is its repair and revision service, offering quick turnaround repair and revision of injection molds and die-cast dies.

“The goal of our customers is to get existing tooling running efficiently and productively for as long as possible, which requires constant preventive maintenance,” notes Bill Jr.

Specialized Machining ServicesAs part of its diversification strategy, Reddog also has aggressively marketed its services beyond plastics and die casting by strategically expanding into other areas of manufacturing. Specifically, this involves tooling and specialized machining for contract manufacturers that includes high pressure valves, nuclear components, large gearing and mechanical drives, custom fixtures and large plate machining — components that can weigh up to 15,000 pounds.

“What we needed to do was prove ourselves to these new customers,” Bill Jr. explains. “In most cases, the companies we approached had to travel much further to find a company that could provide the same service, and we could do it more cost effectively.”

Reddog’s sheer size, lift capacity and machine capability — comprised of high-speed machining centers, state-of-the-art CNC sinker EDM machines and extensive engineering expertise — set it apart from its competitors.

“Many companies cannot supply the wide range of services that we have available; we have the ability to service projects from the very simple and small to the extremely large and complicated,” adds Bill Jr. “You have to travel a great distance to find a company with our resources. We are able to provide a vast array of manufacturing solutions locally, which allows our customers to reduce costs and easily interact with us as their subcontractor. This not only provides comfort for their engineers but also creates a great relationship between them and us.”

A Team EffortDiversification has been key to Reddog’s success, but so too are the people who come to work every day to make certain that the company meets every customer’s expectations.

“Our employees like what they are doing and they understand that we appreciate their very significant contributions every day,” says Bill Jr. “We have created an environment that is easy to work in, but is extremely demanding in that each and every person understands that he or she is playing a key role in a series of events that will occur over a few days, weeks or even months and ultimately end in the completion of a large project.”

Bill Jr. goes on to explain that, "Every employee is like a link in a chain; everyone has to do his or her part. It has to be right, on-time, and the quality has to be excellent.”

It’s this unified effort — from the company’s family leadership to longtime staff and journeymen tool-and-die makers, technology and exceptional services — that has made Reddog an integral part of local and regional commerce, bringing the global economy to Erie on a daily basis.

“The willingness to embrace the global economy and make it drive our success has been key to our survival,” says Bill Jr. “In doing so, we have been able to strategically right-size and improve our man-ufacturing efficiency.”

The result is a reinvented Reddog at its best. To learn more about Reddog Industries, visit www.reddog-erie.com.

Reddog’s experienced machining specialists use cutting-edge programming software and machine tools to provide customers with the highest quality, on-time injection molds, die-cast dies, and custom machined products.

16 < www.mbabizmag.com < October 2012 16 < www.mbabizmag.com < October 2012

A “DESIGNATED DRIVER” FOR YOUR ROTATING EQUIPMENT

In a consumer world that has literally shrunk into the palm of our hand-held devices, a buyer can easily get the false impression that something made locally could not possibly be as good as a similar item made in an exotic land. In the case of metal-cutting tool development and manufacturing by Greenleaf Corporation in Northwestern Pennsylvania, nothing could be further from the truth.

Standing on a 67-year history of excellence, Greenleaf Corporation is a world-class developer of cutting-tool technology.

18695 Greenleaf Drive, Saegertown, PA 16433Phone: 1.800.458.1850 | 814.763.2915 | Fax: 814.763.4423 Greenleaf Corporation is ISO 9001 Certified.

We specialize in the manufacture of high-performance tungsten carbide and ceramic inserts as well as innovative tool-holding systems. From our headquarters in Saegertown, Pennsylvania and a facility in North Carolina, Greenleaf proudly o!ers American-made products in over 60 countries worldwide.

Most reasonable buyers would agree that buying locally is a good idea and shows good social conscious. However, when you can also purchase the very best tooling solutions and customer support for your metal-machining needs, then it truly becomes a win-win situation for everyone involved.

Application-speci"c, custom-designed tooling is a hallmark of the Greenleaf product line. As machining demands change moving into the future, we are prepared to o!er original, specialized engineering and unparalleled customer support in the "eld. We provide these services at home and abroad.

Greenleaf pioneered and perfected whisker-reinforced ceramic technology, which revolutionized the world of jet engine manufacturing. Greenleaf’s advanced ceramic inserts are found all over the world taking on the hardest materials in the toughest cutting applications. Greenleaf has followed up on that foundation with success after success, driven by the desire to be among the world’s best providers of metal-cutting solutions.

So, the next time you are looking for a metal-cutting solution and great customer support, remember that the very best your money can buy is in your own backyard - at Greenleaf Corporation!

For more information go to www.greenleafcorporation.com/10










Company Name: Solar Atmospheres of Western










Company name: Beacon LubricantsAddress: 11170 Edinboro RoadEdinboro, PA 16412 Phone: 814/734-7535Website: [email protected]: Patrick M. HuntleyFounded: 1995Number of Employees: SevenIndustries Served: Industrial, commercial, automotive Specializes in: Manufacturer of industrial oils, metal working !uids, automotive lubricants and greases. All products are available in various industry sizes.

Company Name: American Turned ProductsAddress: 7626 Klier Drive, Fairview, PA 16415Phone: 814/474-4200Website: www.atpteam.com

President: Gerald B. EighmyFounded: 1984Number of Employees: 125Industries Served: Automotive, !uid power, electric and gas Specializes in: Contract precision CNC and rotary transfer machining of ferrous and non-ferrous metals.

Company Name: Solar Atmospheres of Western PAAddress: 30 Industrial Road, Hermitage, PA 16148Phone: 724/982-0660Website: www.solaratm.com

President: Robert HillFounded: 2001Number of Employees: 45Industries served: Aerospace, medical, power generation and many more Specializes in: Vacuum heat treating of large, mainly titanium, manufacturing parts. Furnaces up to 36 feet long, 10-20 bar quenching, Fluorescent Penetrant Inspection. ISO9001 / AS9100, Nadcap, SHARP, ITAR.

Company Name: MatricAddress: 2099 Hill City Road, Seneca, PA 16346Phone: 814/677-0716Website: www.matric.com

President: Richard E. Turner, Jr.Founded: 1971Number of Employees: 285Industries Served: Energy, industrial controls, medical devices, communications, aerospace, transportation and heavy machinery Specializes in: Electronic contract manufacturing services (PCB to full turnkey), engineering design, aftermarket service, cable assembly (including overmold), and electromechanical assembly (box build).

Made PAin

October 2012 > www.mbabizmag.com > 19October 2012 > www.mbabizmag.com > 19

Manufacturing in...814.835.6000 •www.eriez.com

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age rack manufacturers in North America and is still a family owned business.

One of the key contributors to the company’s success has been the increased

-

Narrow-Aisle and Deep-Reach systems, design engineers can lay out storage

change with competitive racks. Many specialty storage options are available,

through the most powerful anticipated earthquake that the country will ever

C O M P A N Y P R O F I L E

Ridg-U-Rak 120 South Lake StreetNorth East, PA 16428814/725-8751 or Toll-Free 866/479-7225www.ridgurak.com

70 Years of Excellence in Servingthe Storage Rack MarketAt the end of WWII, there was a growing need to modernize and expand the nation’s ware-housing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to !ll those needs. Company after company was springing up, headed by owners who carved out a market share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding com-panies, investment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist.

Ridg-U-Rak was a minor player in those early years. Although limited in marketing vision and hampered by a lack of manufacturing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the operation celebrates its 70th year of serving the storage rack market, Ridg-U-Rak is commonly acknowledged as a company built on Integrity and Service, guided by the able leadership of its president and CEO, John B. Pellegrino Sr., P.E.

CapabilitiesRidg-U-Rak now has two plants in North East, Pennsylvania, covering 160,000 square feet, with a production capacity of more than 100,000,000 pounds of !nished steel products per year. It remains one of the largest stor-age rack manufacturers in North America and is still a family owned business.

One of the key contributors to the company’s success has been the increased talent base of its sta", with the ability to completely manage large projects from design and code compliance, through manufacturing, to !nal installa-tion and customer approval.

Major capital investments in its manufacturing plants have been instru-mental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout revamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coat-ing line, which not only improves product quality, but also the company’s environmental imprint by reducing its liquid paint usage. From recycling pro-grams to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustain-ability expectations.

ProductsRidg-U-Rak provides an unlimited array of storage options. Whether deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can lay out storage arrangements to meet a customer’s unique load, throughput and capac-ity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, and o"ers replacement parts that inter-change with competitive racks. Many specialty storage options are available, including a rack-supported crane system to store large dies and tools.

Seismic Base Isolation SystemWarehouse storage racks have proven to be particularly vulnerable to earth-quake damage, and new FEMA guidelines mandate rack structure integrity during a moderate to severe earthquake.

Ridg-U-Rak took a quantum leap in the design of storage racks for earth-quake-prone areas when it developed and patented the Seismic Base Isolation System, a design that will resist rack damage and product spillage through the most powerful anticipated earthquake that the country will ever experience. Because of this innovated work, Ridg-U-Rak received the Excel-lence for Innovation award by the National Earthquake Conference.

John B. Pellegrino Sr., P.E.President and CEO

June 2012 > www.mbabizmag.com > 5October 2012 > www.mbabizmag.com > 21

HR ConnectionMOST MANUFACTURING WORKERS EARN HIGHER WAGES, BENEFITSThe U.S. Commerce Department’s Economic and Statistics Administra-tion recently released a report that compared salaries and benefits between workers in the manu-facturing and nonmanufacturing sectors. Those within the manufac-turing industry are compensated an estimated 17-percent higher than the average nonmanufactur-ing employees.“Manufacturing employment means higher wages and impor-tant benefits for Americans and their families,” explained Com-merce Secretary John Bryson in a press release. “This report reaffirms that manufacturing is a matter of fundamental importance to our

country’s economic strength, so we must do everything we can to continue to build an overall envi-ronment where U.S. manufacturing can flourish.”Manufacturing salaries were typi-cally higher because workers in the industry typically required a higher level of mathematical, scientific, technical and engineering exper-tise, said the report.The report also holds relevance for facility managers that service the manufacturing industry, as many of these professionals have been tasked with conducting the main-tenance and building management for a growing sector.

SURVEY: NO LET-UP IN GLOBAL SKILLS GAPThe global skills shortage shows no

signs of improving, with more than one-third of companies around the world reporting difficulties filling open positions because of a lack of talent, according to a survey by ManpowerGroup, the recruit-ment company.Overall, 34 percent of companies said they were finding it hard to fill open positions. That is the same figure as last year, which put the “skills gap” at its highest level since 2008. Skilled trades workers were the hardest to find, followed by engi-neers and sales representatives.The issue is a longstanding com-plaint of U.S. employers. The number of unfilled job openings has been rising steadily since mid-2009, according to the U.S. Bureau of Labor Statistics.


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

DEPARTMENTS > Contact: Stacey Bruce

Very soon employers need to take heed to the rules and regulations laid out in the Patient Protection and Affordable Care Act (PPACA). Here are a few highlights of what the future holds:The uniform Summary of Benefits and Coverage (SBC) rule becomes effective with the first open enroll-ment period beginning on or after September 23, 2012 or January 1, 2013 for calendar year plans. This is required for all health plans sponsored by small or large employers. A “four” page standardized summary of health benefits is required to be able to be used by participants to understand and compare their options. This SBC may be delivered by mail or electroni-cally. For most fully insured plans, the summary will be provided by the insurer. For self-insured plans, the Plan Administrator is responsible for the SBC preparation and distribution.

Many employers will need to provide informational reporting of the ag-gregate cost of employer-sponsored health coverage for each employee. This will happen with the 2012 Forms W-2 that will be issued in January 2013. This provision does not apply to employers issuing fewer than 250 Forms W-2.In addition, Medical Loss Ratio (MLR) rebates have started. Insurers were required to pay 2011 rebates by Au-gust 2012. This MLR provision requires insurers to spend a minimum percent-age of premiums on medical claims and improving health quality. The percentages are as follows: 85 percent for large group markets (more than 50 employees) and 80 percent for small and individual group markets. Effective for plan years beginning on or after January 1, 2013, health flex-ible spending account (FSA) employee salary reduction contributions will

be limited to $2,500. Also preventive services for women must be covered without cost-sharing effective for plan years that began on or after August 1, 2012. These are just a few of the rules and regulations that companies are facing with the advent of enforcement of additional provisions of the PPACA. Watch for seminars and briefings on this subject and similar topics at www.mbausa.org.

New Health-Care Law Provisions Impacting Employer Benefit Plans

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OntheHill2012 Congressional ElectionOn November 6, Pennsylvania voters will decide who will represent them in their respective districts for a two-year term in the U.S. House of Representatives. To help determine the best choice for office, the Manufacturer & Business Association recently asked the candidates in Congressional Districts 3, 5, 10 and 12 — the Association’s membership area — what they would do to improve Pennsylvania's business climate, if elected. Their responses are below. For the latest election coverage, visit the Association’s Government Affairs homepage at www.mba-ga.org

Mark Critz – D Incumbent

“Creating jobs and growing the economy is my top priority. To stay competitive, we must widen the flow of commerce, invest in domestic energy production, strengthen our infrastructure, and ensure that we have the world’s best trained work force. As a Member of the House ‘Make It in America Task Force,’ I am working hard to cultivate an environment for more businesses to make products here in America, because when they do, we all win.”

Keith Rofthus – R Challenger

“We must make Pennsylvania the most competitive place in the world to do business by reducing unreasonable regulations, simplifying our complicated tax code, decreasing our national debt, and repealing unwanted legislation like Obamacare that has acted as a wet blanket on our economy. We must utilize our great energy resources and invest in and strengthen our infrastructure. The Obama/Critz economy is about empowering D.C. bureaucrats, but we must empower our job creators here in Pennsylvania.”

12th DistrictLocated in southwestern Pennsylvania, the 12th District consists of all of Greene County, and parts of Allegheny, Armstrong, Cambria, Fayette, Indiana, Somerset, Washington, and Westmoreland counties.

Missa Eaton – D Challenger

“I am well aware of the bleak business climate many small business owners and corporations are facing in the Commonwealth of Pennsylvania. A recent study used by the Pennsylvania Business Journal has given the Commonwealth an average grade of ‘C.’ I will not allow Pennsylvania to be seen as an average economic climate. In office, I will work to improve private and public sector relationships, increase tax incentives, and work to improve infrastructure.”

Mike Kelly – R Incumbent

“I decided to run for Congress because, as a small businessman, I saw firsthand how the wayward policies of Washington were negatively affecting Main Street America. I am proud that the Republican-led House has passed measures to cut taxes and eliminate the onerous regulations we place on our job creators. We have taken the important steps and it is imperative the Senate and the president follow our lead and light the American spirit of entrepreneurship.”

3rd DistrictPennsylvania’s 3rd District is located in the northwestern part of the state and includes the cities of Erie, Sharon, Hermitage, Butler and Meadville.


DEPARTMENTS > Contact: Lori Joint

2012 Congressional ElectionOn November 6, Pennsylvania voters will decide who will represent them in their respective districts for a two-year term in the U.S. House of Representatives. To help determine the best choice for office, the Manufacturer & Business Association recently asked the candidates in Congressional Districts 3, 5, 10 and 12 — the Association’s membership area — what they would do to improve Pennsylvania's business climate, if elected. Their responses are below. For the latest election coverage, visit the Association’s Government Affairs homepage at www.mba-ga.org.

Charles Dumas – D Challenger

“Pennsylvania is the most rural state in America. Outside of its major cities, it has an outdated, transportation structure. I would work toward developing light rail networks, which would allow workers better access to the commercial and industrial hubs. In addition to immediately creating needed jobs to build such an infrastructure, it would also allow workers better opportunity to live in the less congested parts of the state while commuting to more efficient industrial centers.”

Glenn Thompson – R Incumbent

“Government has never created sustainable jobs, but certainly impacts the confidence of business owners through excessive taxes, over-regulation and flawed energy policy that escalates prices. I have co-sponsored legislation addressing these issues. I have led to reduce regulatory burdens that cost over $10,000 per employee annually. I will continue the fight to simplify the current tax code, defeat the proposed $3.8-trillion tax increase and expand access to domestic affordable and reliable energy sources.”

5th DistrictPennsylvania’s 5th District is located in north central Pennsylvania and includes all or part of the following 17 counties: Cameron, Centre, Clarion, Clearfield (all but the southwest corner), Clinton, Crawford (eastern corner), Elk, Forest, Jefferson, Juniata, Lycoming (western half), McKean, Mifflin, Potter, Tioga (all but Ward Township), Warren (southern and eastern half), and Venango (all but the southern third).

Phil Scollo – D Challenger

“I’m a businessman, not a politician. I’ve run a management consulting firm out of Pike County for the past decade and a half. We need to work across party lines to create a simpler environment for doing business here. I’ll make it my priority to remove burdensome regulations which impact business growth and I’ll work with Republicans and Democrats to create a Made in America tax break to help keep manufacturing jobs here.”

Tom Marino – R Incumbent

“With the highest corporate tax rate in the world, we need comprehensive tax reform that lowers overall rates while eliminating special interest loopholes and deductions. Also, we must redouble our efforts to repeal Obamacare, which stifles businesses with regulations, includes tax hikes of $675 billion, and will cost an estimated 700,000 jobs. Finally, we need to enact an all-of-the-above energy policy that will increase domestic production, develop alternative energy sources, and lower energy costs, creating a better climate for small businesses and a better future for all Americans.”

10th District Pennsylvania's 10th District is the third-largest congressional district in the state. The district encompasses the following counties and areas: Bradford and Lackawanna counties (excluding Old Forge, Moosic, Scranton, and Dunmore but including Clarks Summit), Luzerne County (Back Mountain area including Dallas, Shavertown, Trucksville, Kingston, Wyoming, and Swoyersville), Lycoming County (Sullivan/Columbia/Montour County boundaries west to the West Branch of the Susquehanna River, except Montoursville, north to Cogan House), Montour, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Ward, Union, Wayne and Wyoming counties.


WHEN DO I HAVE TO REVERIFY OR UPDATE EMPLOYMENT AUTHORIZATION FOR REHIRED EMPLOYEES ON THE FORM I-9?If you rehire an employee within three years of his or her original hire date and you have previously completed Form I-9 for that employee, you may complete a new Form I-9 or you may be able to rely on the previ-ously completed Form I-9 in certain circumstances.Inspect the previously completed Form I-9 and:1. If the employee’s previously com-pleted Form I-9 indicates that the individual is still eligible to work, you are not required to complete a new Form I-9 but may rely on the previ-ously completed Form I-9 to meet the verification requirements for this employee. You must update the previ-ously completed Form I-9 in Section 3 with the date of rehire; or

2. If you determine that the employ-ee’s employment authorization has expired, you must reverify employ-ment authorization in Section 3 of the previously completed Form I-9, or use a new Form I-9 if Section 3 has been used already.Note: You must complete a new Form I-9 if the version of the form you used for the previous verification is no longer valid. Please check www.uscis.gov/i-9 for the currently valid Form(s) I-9 or contact the Association at 814/833-3200 or 800/815-2660.

WHEN I REVIEW AN EMPLOYEE’S IDENTITY AND EMPLOYMENT AUTHORIZATION DOCUMENTS, SHOULD I MAKE COPIES? If you participate in E-Verify and the employee presents a document used as part of Photo Matching, currently the U.S. passport and passport card,

Permanent Resident Card (Form I-551) and the Employment Authorization Document (Form I-766), you must retain a photocopy of the document he or she presents. Other documents may be added to Photo Matching in the future. If you do not participate in E-Verify, you are not required to make photocopies of the documents.

HOW DO I CORRECT A MISTAKE ON AN EMPLOYEE’S FORM I-9? The best way to correct Form I-9 is to put a line through the portions of the form that contain incorrect informa-tion and then enter the correct infor-mation. Initial and date your correc-tion. If you previously made changes on Form I-9 in Wite-Out, the United States Center for Immigration Services recommends that you attach a note to the corrected Form I-9 explaining what happened. Be sure to sign and date the note.

HR Q&A


THE WARREN COMPANY2201 Loveland Avenue

Erie, PA 16506Phone: 814/838-8681

Website: www.thewarrencompany.comMetals service center and custom fabricator

E-Verify is a free, Internet-based system operated by the Department of Home-land Security (DHS) and the Social Secu-rity Administration. This program allows employers to verify the employment eligibility of newly hired employees by entering employee-provided identity and work eligibility information online.

The use of the E-Verify system is vol-untary for most employers, and any employer in the 50 states, the District of Columbia, Puerto Rico, Guam, or the U.S. Virgin Islands may use the system as long as the employer agrees to the rules of the program.

Employers who participate in the program must use it to verify all new employees regardless of national origin or citizenship status. Since the E-Verify system utilizes information provided by employees in Sections 1 and 2 of the Form I-9, E-Verify employers should

make sure that an employee’s Form I-9 is filled out correctly, and that it is properly signed and dated before they attempt to use the E-Verify system.

As you may know, as of September 8, 2009, all federal government contrac-tors were required to use E-Verify. This requirement is meant to ensure that the federal government only does business with companies that have a legal work force. The new rule applies to all newly hired employees as well as current em-ployees, and companies awarded a new contract must enroll in E-Verify within 30 days of the contract award date.

Qualifying contracts are those with a contract length longer than 120 days and a value above $100,000. Such contracts will include a clause commit-ting the contractor to use E-Verify. Such a clause also will be required in subcon-tracts more than $3,000. Though the

requirement to use E-Verify will mainly affect new contracts entered into on or after September 8, 2009, previously established contracts that are modified also may contain this clause.

The Manufacturer & Business Associa-tion will be hosting an E-Verify and I-9 webinar conducted by the Department of Homeland Security on November 7. For details, visit the HR homepage on www.mbausa.org.

E-Verify: Who Should Comply and Why?

DEPARTMENTS > Contact: Stacey Bruce

Stacey Bruce is a PHR-certified HR generalist and Human Resource supervisor at the Manufacturer & Busi-ness Association.


Lean-Six Sigma – Erie From left; Joe Popowycz and Darla Musulin, C&J Industries, Inc.; Jan Eric Smith, Jamestown Coating Technologies; and Association instructor Ray Davis.

Leadership for Team Leaders – ErieFront row, from left: Diana Lander, L’Arche/Erie; Jimmy Biedrzycki, Corry Manufacturing; Jeff Huey, Signal-Tech; Glenn Craig, Ridg-U-Rak, Inc.; Aaron White, Modern Industries; and Randall Ewing, Ridg-U-Rak, Inc.

Back row, from left: Chris Eastman, Corry Manufacturing; Steve Stitzinger, Protective Industries; Kurtis Amy and Lucas Zimmerman, Corry Manufacturing; Steve Pope, Modern Industries; Gary Schermer, Ridg-U-Rak, Inc.; and Mark Husted, Samtec.

HR Essential Certification Series – Grove CityFront row, from left: Shelly Wilson, Clarion Students Association, and Angela Bolois, Northeast Industrial Manufacturing, Inc.

Back row, from left: Brook Guthrie, Youth Educational Services LLC; Lori Reeves, Reeves Information Technol-ogy; Jennifer Preston, Mercer County State Bank; Tiffany L.K. Suorsa, Slippery Rock Veterinary Hospital; Stepha-nie Moyer, Penn TecQ, Inc.; Julie Rebmann, Center for Community Resources; Janice Rehwald, II-VI Incorporated; Joni Frank, Con Yeager Spice Co./CYS Transportation; and Brian Walters, Pittsburgh Plastics Mfg., Inc.

HR Essential Certification Series – Erie From left: Lela Mulligan, I.P. Services Inc.; Richard Clark, Turning Point Chemical Dependency Treatment Center; and Association HR specialist Robyn Hopper.

HR Essential Certification Series – Erie From left: Dina Heile, Intellectual Property Services; Laura Revak, C.A. Curtze; Kristie Nosich, Highmark Caring Place; and Association HR specialist Robyn Hopper. Not pictured: Tammy Ricci, Moody and Associates, Inc.

Leadership for Team Leaders – Warren From left: Robert Gross, Jerry Stuart, Andy Rose and Cale Crocker, Betts Industries.

Events2012 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 www.mbabizmag.com for complete coverage.

HR Essential Certification Series – Erie From left: Association HR specialist Robyn Hopper and Terry D. Amoroso, Corry Forge Company.

Leadership for Team Leaders –Warren From left: Robert Zigler, Whirkey DrinkWorks, Association Training instructor Lisa DeFilippo; and Kristin Eames and Nathan Hughan, Whirley DrinkWorks.

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Certified Supervisory Skills Series – ErieFront row, from left: Lisa Kruszewicz, ACL; Gene Stetson, Acvite Inc.; Peter Greene, Air Born Lake City; and Dustin Adair, AccuSpec.

Back row, from left: Christina Houle, Ridg-U-Rak; Gloria Cooley, St. Mary’s Home of Erie East; Daniel McShane, Erie International Airport; Shirley Frye, AccuSpec; and Jose Cruz, Ridg-U-Rak, Inc.

Certified Supervisory Skills Series – Meadville From left: Mike Davis, Target Precision; Kevin Allen, Howard Bolding, Lou Smeltzer and Jeremy Coblentz, Ainsworth Pet Nutrition; and Tim Phillips and Rick Mong, Time Machine, Inc.

Certified Supervisory Skills Series – ErieFront row, from left: Kevin Gunter, Ridg-U-Rak, Inc.; Jenn Altman, Great Lakes Home Healthcare Services; Indra Subedi, Plastek Industries, Inc.; Jana O’Camb, UPMC Hamot; and Nathaphum Sur-a-neknan and Bonnie Smith, Plastek.

Back row, from left: Mark White, Plastek; Larry Peterson, Millennium Inorganic Chemicals; Bart Philip, Arvite; Angela Diver, Marquette Savings Bank; Christopher T. Rensel, Plastek; and John Orr, Industrial Sales & Mfg., Inc.

Certified Supervisory Skills Series – Warren Front row, from left: Dale Jewell, Superior Tire; Mike Hoban, Greg Stenta and Jim Tuley, Betts Industries.

Back row, from left: Robert Zigler, Whirley DrinkWorks, Jim Berdine, Superior Tire; and Nathan Hughan, Whirley DrinkWorks.

Certified Supervisory Skills Series – Grove CityFront row, from left: Martin Hanyak, CATTRON; Cynthia Sicilian, Barb Grossman and Colleen Deems, Pine Instruments; David Batley, XALOY; and Brittany Burnett and Brian Zinkham, CATTRON.

Back row, from left: Dan Piontkowski, CATTRON; Melissa Turner, Pine Instruments; and Jennifer Clanch, Greg Ursta, William Weidner and David Bolger, CATTRON.

Certified Supervisory Skills Series – Grove City Front row, from left: Paul Clegg, Mike Moczan, Mac Graham, Linda Anderson and Warren Hart, Ellwood City Forge.

Back row, from left: Bob Hozick, Aaron Mattison, Denny Anderson, Steve Timko and Dave Stanboro, Ellwood City Forge.

Certified Supervisory Skills Series – KittanningFront row, from left: Kim Gratteri, Lynn Chromiak, Barb Dudek and Diana Heilman, Drug Plastics.

Back row, from left: Association Training Director Dan Monaghan; and Jerry McLaughlin, Mike Byron and Joe Weister, Drug Plastics.

Computer Training Application Specialists — Erie From left: Access Application Specialist Jeremy McFadden, Erie Insurance; Excel Application Specialists Mary Niemi, Fralo Industries, Inc., and Cullen Myers, Berry Plastics; and Computer Training Manager Amy Pontillo.Not pictured: 17 graduates from 15 companies


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MBA WELCOMES NEW BOARD MEMBERThe Manufacturer & Business Association Board of Governors recently named Joel A. Berdine as its newest Board member, replacing Lorenzo Simonelli, president and CEO of GE Transportation. Berdine will serve on the 12-person Board of Governors for a three-year term.

Berdine was appointed general manager of Global Supply Chain for GE Transportation in October 2009 and, in March 2012, appointed to general manager for Locomotive and Mining, Global Supply Chain. Prior to that, he served as general manager of Global Supply Chain for GE Sensing & Inspection Technologies. He assumed this role in June 2005 after serving as

general manager for GE Energy’s Power Electronics Global Supply Chain.

Berdine began his GE career in 1988 at GE Energy, where he held numerous positions in Sourcing, Manufacturing and Quality. From 2002 until his current assignment, he led the Supply Chain for a series of acquisitions in GE Energy including Optimization Control, NRPS and Environmental Services.

Berdine earned a bachelor’s degree in physics from St. Bonaventure University and a master’s degree in Operations Research — Applied Statistics from Union College in Schenectady, New York.

PIRRELLO ENTERPRISES HIRES ACCOUNT EXECUTIVE Pirrello Enterprises Inc. and Archival Solutions Inc. in Erie, Pennsylvania recently hired Jennifer DeCecco as the firm’s

new account executive. DeCecco previ-ously worked at the Erie Times-News as a retail account executive. She has more than 15 years’ experience in customer service and sales and is certified in Kodak Capture Pro software. DeCecco will be responsible for growing the customer base and implementing sales. She earned her bachelor’s degree from John Carroll.

WACHTER NAMED EHCA BOARD PRESIDENTTimothy S. Wachter, an attorney at the law firm of Knox, McLaughlin, Gornall & Senett, P.C. in Erie, has been named the president of the Board of Erie Homes for Children and Adults, Inc., (EHCA).

Founded in 1912, EHCA is a private, nonprofit, multi-faceted organization offering both residential and community-

People Buzz


DEPARTMENTS > Contact: Karen Torres

based supports to children and adults with developmental disabilities. Through 10 programs, EHCA serves more than 300 people and their families every day throughout four counties: Erie, Crawford, Venango and Potter. Since its beginnings as a temporary home for needy infants, the agency has evolved into 16 group homes providing specialized residential care for children and adults and offers community-based support services for individuals who live on their own or with their families.

UPMC HEALTH PLAN APPOINTS HAGERTY AS VICE PRESIDENT OF NORTHERN TIER MARKET UPMC Health Plan recently appointed Charles “Boo” Hagerty as its new vice president of the Northern Tier Market,

which includes Erie and northwest Pennsylvania.

In his new position, Hagerty will enhance UPMC Health Plan’s expansion into the Erie region, and will provide leadership and direction for the Health Plan’s sales, marketing, and provider and community relations initiatives. He will serve as regional spokesperson, with responsibility for retention, maintaining operational effectiveness, and developing innovative product and network solutions that support customer needs.

Hagerty is based at UPMC Health Plan’s regional retail sales office, located in the Boston Store building in downtown Erie.

Prior to joining UPMC Health Plan, Hagerty served as chief development officer of the Hamot Health Foundation in Erie. He holds a bachelor’s degree in journalism from West Virginia University.

MALIN BERGQUIST CHARITIES, INC.ELECTS NEW BOARD MEMBERVincent Son, CPA, has been elected to the board of directors of Malin Bergquist Charities, Inc., the nonprofit organization created by employees of the Malin Bergquist & Co. accounting firm and devoted to the fight against cancer.

Son is an audit senior with Malin, Bergquist & Co. of Erie. He has more than eight years of public accounting and auditing experience, specializing in the manufacturing, employee benefit plan and nonprofit industries. Son holds a bachelor’s degree in business administration from Waynesburg University.


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October 2012 Business Magazin

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Transcript of October 2012 Business Magazin