January 2013 Business Magazine

BUSINESSM A G A Z I N E

VOLUME XXVI, NUMBER 1 JANUARY 2013Manufacturer & Business Association

The Measurement Solutions Experts / Page 12

Anniversary information is based on member records as of

November 2012. We regret any errors or omissions. Please

contact the Manufacturer & Business Association with updated

information for inclusion in future publications.

22 < www.mbabizmag.com < January 2013

January 2013 > www.mbabizmag.com > 23

12FEATURES > 3 / Guest EditorialThe Erie-Times News explains why GE Foundation President Bob Corcoran has the right idea when it comes to embracing new academic standards that will help make American schools more competitive internationally.

5 / Risking It AllDan Brownlee, owner of Brownlee Lumber Company in Brookville, Pennsylvania, which is celebrating its 40th year in operation, talks about the ups and downs of running a family owned business in the current economy.

12 / FMC Technologies Measurement SolutionsLearn about the many ways that FMC Technologies Measurement Solutions in Erie is investing in its business unit and growing its work force through strategic partnerships to produce the most rugged and precise measurement equipment in the world.

19 / On the HillJim Rutkowski Jr., vice president of Industrial Sales & Mfg., Inc. in Erie, Pennsylvania, explains the value of connecting employers and jobseekers through the Occupational Information Network (O*NET).

EDITORIAL > 9 / Health Matters How fostering resilience can lead to a more confident, challenged and interested work force.ANNETTE KOLSKI-ANDREACO

11 / Legal BriefWhy planning for tax credits now can benefit education in the future.THOMAS A. PENDLETON

January 2013

5

SPECIAL SECTION > 22 / Happy Anniversary!Our special section recognizes the hundreds of Association member companies that are celebrating milestone anniversaries in 2013.

6

DEPARTMENTS > 6 / Business Buzz16 / HR Connection

20 / Legal Q&A25 / People Buzz

Read on the Go!For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter!


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GE Foundation President Bob Corcoran makes a very persuasive case that new academic standards will help make American schools more competitive internationally — soon, if we all embrace the challenge.

We certainly should.

Corcoran was in Erie last week to check up on the foundation’s $27 million investment in Erie schools and to inspire Erie business leaders to get on board with the plans. The good news is there’s every indication they are. A number of Erie business, education and government leaders impressed Corcoran in a conference at the Bayfront Sheraton on Wednesday before he toured the schools.

“The group from the Erie business community that was (at the conference) decided not to have lunch with everyone else,“ Corcoran said. “Instead they took their food into another room and immediately started talking about how they can make this a reality.“

“This“ is the Common Core State Standards, which reflect more in-depth lessons on math, language arts and eventually science across the country. Forty-six states, including Pennsylvania, have agreed to the standards, which will be in place by 2014.

As Corcoran explained it, the standards will compel a dramatic shift in how key academic courses are taught in schools. For example, under the current approach, many types of math, such as algebra, are taught at all aptitude levels, from first through eighth grade. But while the variety of subject matter is wide, the depth is shallow because so much is covered in so little time. The new standards, reflecting the approach of countries that have far surpassed American students in test scores and graduation rates in recent years, involve covering fewer areas for longer periods of time until the material is mastered.

Erie schools Superintendent Jay Badams pointed out that an updated math and science curriculum has helped prepare the Erie district for the new standards, but much work looms. “The real work is going to be in the classrooms and in the schools. There are a lot of really, really good teachers who need our support,“ Badams said.

An $8.6 million grant has enabled Erie teachers and administrators to work with some who developed the new standards. And GE’s hope is that the Erie district will then help other Erie County districts get ready for the major changes.

A big, unanswered question, however, is whether the Pennsylvania Department of Education will also get fully on board with the Common Core State Standards, and all that those words entail. The foundation has given local teachers a voice in discussions on Common Core aligned tests.

There are now two of these tests being developed, but the Pennsylvania Department of Education has not yet endorsed either test and has hinted it may decide to use its own. Such a move would be shortsighted.

This article is reprinted with permission from the Erie-Times News and was originally published on October 15, 2012.

GE Foundation Makes Persuasive Case

EDITORIAL > by Erie Times-News

VOL. XXVI, NO. 1 JANUARY 2013

© Copyright 2013 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]

Digital Media Manager Jessica McMathis [email protected]

Contributing Annette Kolski-Andreaco Writers Erie Times-News Thomas A. Pendleton

Feature Photography Meghan Badolato R. Frank Photography 4320 Miller Avenue Erie, PA 16510 [email protected]

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

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

ON THE COVER: Mechanical engineers (front, from left) Rob Carson, Nicole Gailey and Catherine Franks, and Research and Development technicians (back, from left) Tim Breski and Rich Ardillo examine fluid measurements at the Flow Research and Test Center located at FMC Technologies Measurement Solutions’ campus in Erie. The business unit, which provides measurement solutions for the oil and gas industry, has invested heavily to develop an independent testing facility that is like none other in the world. For full story, see page 12.

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The Business Magazine’s “Risking It All“ section highlights the entrepreneurs who took risks and made sacrifices to build their businesses in our region. This month, we sat down with Dan Brownlee, owner of Brownlee Lumber Company in Brookville, Pennsylvania, which is celebrating its 40th year in 2013, to talk about the challenges and opportunities of running a family owned business in the current economy.A lot can happen in 40 years.When Dan Brownlee and his brother Charles gave up farming and purchased a log skidder and truck to start Brownlee Lumber Company in 1973, things were certainly different.The lumber industry and new construction were booming. And capital was easier to come by, allowing the company, which began as a logging contractor for area sawmills, to further expand with the addition of its own sawmill in 1978.The business, says Dan Brownlee, now the sole owner of Brownlee Lumber, “seemed to be a natural fit and a natural progression for us. It was a whole lot easier back then to take a couple of hard-working guys with a small amount of working capital and make something happen.“Fast forward four decades. After a housing-led global recession and the slow recovery that followed, the environment in which Brownlee Lumber competes has changed dramatically.“Two-thirds of what we do ends up in a house,“ says Brownlee. “As an industry, we’re producing about half of what we produced before the crash.“Despite the downturn, what hasn’t changed is the entrepreneurial spirit and work ethic that guided Brownlee from its humble hardwood lumber beginnings to a force in the industry.Key to the company’s success are the combined efforts of many, including its valued 35 full-time employees, which includes three of Brownlee’s four adult children; customers who are seen as partners; the community in which the business operates; and long-term associations based on fairness, mutual trust, integrity and accountability.“For those of us in the industry that are left standing, margins are slim, and the competition is difficult,“ Brownlee says. “But the ones that are left are the ones who were most competitive and best positioned — that’s why we survived.“And though the challenges now are greater, so too are the opportunities.“Owning your own business these days is so much more capital intensive. It’s more difficult to get capital, and regulations are more difficult,“ notes Brownlee. “But we’ve spent a lot of money these past few years updating and modernizing everything, improving our productivity. We’ve sat down and selectively picked off projects that had to be done to make us more efficient. And it’s allowed us to see success. We even set a new production record for the company this year.“Whether in 1973 or 2013, Brownlee has found fulfillment in the family owned business.“We’ve poured ourselves into the company. And you get back what you put in,“ he says.It’s that same entrepreneurial spirit and solid work ethic that have set the company apart for four decades — and made Brownlee a name for exceptional value in hardwood. For more information about Brownlee Lumber Company, visit www.brownleelumber.com.

Entrepreneurial Spirit, Strong Work Ethic Drive Family Owned Lumber Company

EDITORIAL > by Ralph Pontillo

Risking It All

“We’ve poured ourselves into the company. And you get back what you put in.“

— Dan Brownlee

EDITORIAL > by Jessica McMathis

Dan Brownlee is the owner of the Brookville, Pennsylvania-based Brownlee Lumber Company.

The consistency of Brownlee’s lumber extends not only to the color, texture, and grain, but to the quality of the manufacturing as well.

Brownlee Lumber is a single location sawmill.

Are you putting all your eggs


6TH ANNUAL W.I.L.D. CONFERENCE PLANNED FOR MAY 10 IN ERIEThe Gannon University SBDC recently announced that it will present the 6th annual Women in Leadership Development (W.I.L.D.) Conference, titled “Envision your Leadership Journey,“ on Friday, May 10, 2013 at the Erie Bayfront Convention Center. Up to 750 attendees are expected.

Keynote speakers for the 2013 W.I.L.D. Conference include: Barbara Van Dahlen, founder and president of Give An Hour, who was named to TIME magazine’s 2012 list of the 100 most influential people in the world; and, Martha Mayhood Mertz, author of Becoming ATHENA: Eight Principles of Enlightened Leadership and the founder of ATHENA International, a nonprofit organization that seeks to support, develop and honor women leaders.

Conference organizers also announced that Junior Achievement of Western Pennsylvania will be this year’s philanthropy.

Business BuzzJ.H. BENNETT EARNS MAJOR QUALITY AWARDJ.H. Bennett Moving & Storage, Inc., an agent of United Van Lines located in Erie, Pennsylvania, has received the 2012 United Van Lines President’s Quality award, which recognizes the top service achievement in the carrier’s U.S. family of affiliated moving agencies.

United Van Lines is the nation’s largest mover of household goods.

J.H. Bennett is the 17th recipient of the annual award, which was established in 1994. The company earned the recognition on the basis of its quality service performance in accordance with United’s five-step quality service process, as measured by data generated through a comprehensive survey completed by customers after the move.

In addition to the President’s Quality Award, J.H. Bennett was recognized as a Customer Choice Award winner, which is the fourth time the company has received the honor.

J.H. Bennett has been in continual operation since 1914 and is one of Pennsylvania’s oldest moving companies.

For more information about J.H. Bennett, visit www.jhbennett-moving.com.

J.H. Bennett Moving & Storage General Manager Kent Mitchell (left) and President J. Gordon Naughton accept the President’s Quality Award.

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BOLLINGER ENTERPRISESMARKS MAJOR MILESTONEBollinger Enterprises, Inc., (BEi) of Warren, Pennsylvania, which provides manufacturing and labor support for business, as well as vocational rehabilitation services for those with disabilities, recently celebrated its 40th anniversary at a luncheon held this fall at the Conewango Club.

More than 180 guests attended the event, which featured presentations by BEi employ-ees and program participants, and a special recognition for several longtime employees.

Also at the luncheon, it was announced that

BEi will begin work on a community service project in partnership with Pennsylvania Kinzua Pathways to maintain the grounds of the soon-to-be-constructed handicapped accessible viewing platform at Kinzua Beach. A check for $500 from Kinzua Pathways rep-resentatives to help with construction costs was presented to BEi officials.

For more information on BEi, visit www.beiwarren.com.

APPRENTICESHIPS SOUGHT FOR TECHNICAL SCHOOL STUDENTSCompanies interested in offering apprenticeship programs at their places of business are encouraged to contact their local technical school for further information.

Central Tech’s co-op program, for example, arranges for students to take their required courses in the morning and releases them before 1 p.m. to work in their chosen field of study. The students are required to be employed a minimum of 15 hours per week,

which can take place in the afternoon, evenings and/or weekends.

Central Tech students represent 17 different labs, such as business, protective services, electricity, electronics, computer aided drafting, machine technology, information technology, medical assistants, dental assistants, even a two-year welding program. Many of the students in the co-op program are also participants in the Manufacturer & Business Association’s-sponsored Your Employability Skills Certificate Program (Y.E.S.™), which is a 120-hour, rigorous certification course designed for high school seniors to acquire the fundamental skills that employers regard as important to a well-trained work force.

“If an employer would be willing to provide the on-the-job training to an eager student,“ notes Sandra Burr, Central Tech co-op coordinator, “I would love to discuss the possibilities with them.“ To learn more, email [email protected] or contact the technical school in your area.

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Life is full of stressful situations, both personal and professional. Stress of some kind is often unavoidable, or, at least, a common experience for nearly everyone in the workplace. Learning how to be resilient is a life approach that helps those who’ve developed it to handle stress more effectively.

For some, resilience is a way of living. But for all, it’s something to learn and incorporate as they develop.

What is Resilience? Resilience refers to the ability to adapt, recover and grow stronger from adverse situations. It has been referred to by Robert Brooks of Harvard Medical School as “ordinary magic,“ because everyone has the capacity to be more resilient.

Managers and leaders may not realize that what they do contributes to having a more resilient work force. Their job is to create a work environment that makes it possible for each individual to contribute their competencies, to be creative. It isn’t that resilient people are extraordinary people. It’s that they’ve been tested and learned that they are adaptable.

To succeed on the job, employees need to acquire cognitive skills through training and education. Equally important is the establishment of a solid work/life balance with families, social networks and leisure pursuits. It is that support that enables employees to have a solid foundation from which to better handle stress in the workplace and expand their capacity for change and resilience.

Creating an Environment That Encourages ResilienceThe capacity for resilience is in all people, but things can be done to nurture or hinder resilience. Employers and managers need to realize that employees respond far more flexibly and readily when they have supervisors who connect with them in an authentic and personal way. When managers are able to see their employees as whole persons with a desire to contribute their talents, if given an opportunity, then both parties will benefit.

Most employees want an opportunity to shine. They also want their employer to be fair, and to give them some control over what happens to them. They want their employers to be respectful and they want to connect with their manager on a human-to-human, personal level.

Advantages of a Resilient Work ForceA more confident, challenged and interested work force is what every employer wants. The simple truth is that for this objective to be realized, managers need to spend the time and make the effort to know each of their employees as an individual contributor to the overall mission and vision of the organization.

Employees are far more motivated by flexibility and fairness, by opportunities to learn and develop themselves, and by acknowledgement of their accomplishments. For this objective to be realized, managers need to spend the time and make

the effort to know each of their employees as individual contributors to the overall mission and vision of the organization.

Stressful work environments are a fact of life but a more resilient response by employees and their managers makes all the difference in whether they’ll be overwhelmed and burned out.

Creating an atmosphere for resilience is something that comes from leadership at all levels. An employer can turn to an employee assistance program (EAP) to learn different ways to develop resilience in their managers and for their staff.

To learn more about how LifeSolutions uses its expertise in human behavior in the workplace to help companies thrive, visit www.lifesolutionsforyou.com.

Successful Workplaces Foster Resilience

Health MattersEDITORIAL > By Annette Kolski-Andreaco

Annette Kolski-Andreaco, is the manager of Account Services for LifeSolutions, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC WorkPartners, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits — and which offer a full range of insurance programs and products.


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Many communities in Pennsylvania have established a goal of providing improved educational opportunities in order to decrease poverty and to close the gap between available jobs and the skills of graduates. The Pennsylvania Department of Community and Economic Development (“DCED“) offers several types of tax credit programs to eligible businesses that promote innovation in education. These tax credits can be used to provide funds to public schools through non-profit foundations, private schools, eligible students who attend a low-achieving school, and eligible students who attend a pre-kindergarten program.Businesses Eligible to Apply for These CreditsTo be eligible for these tax credits, a business must be authorized to do business in Pennsylvania, and the business must be subject to one or more of the following taxes: corporate net income tax, stock franchise tax, bank and trust company share tax, title insurance companies share tax, insurance premium tax, mutual thrift institution tax, or personal income tax of S-Corporation shareholders or partnership partners.The Amount of the Available CreditsThe business receives a tax credit equal to 75 percent of its contribution up to a maximum of $400,000 per taxable year. This credit can be increased to 90 percent of the contribution if the business agrees to provide the same amount for two consecutive years. For contributions to a Pre-Kindergarten Scholarship Organization, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed, up to a maximum credit of $200,000 annually.Available Tax Credit Programs The DCED provides most of these

tax credits through their Educational Improvement Tax Credit Program (“EITC“). There are three types of organizations that are eligible to receive funding through the EITC program: “scholarship organizations,“ “educational improvement organizations“ and “pre-kindergarten scholarship organizations.“ Businesses can choose which organizations will receive the grants funded by the tax credits. A list of the organizations that are eligible to receive these grants, as well as the guidelines pertaining to them, is available on the DCED’s website provided at the end of this article.The EITC program is used to fund innovative educational programs that are not part of the regular curriculum, but rather offer an advanced academic or similar program that enhances the curriculum of the educational organization. All EITC funds have been exhausted for the current fiscal year (FY 2102-13). Because the new fiscal year begins on July 1, 2013, it makes sense to begin the planning and application process now in order to take advantage of whatever types of credits are available on July 1.“Scholarship Organization“ tax credits can be used to provide funds to any public or non-public kindergarten, elementary or secondary school that satisfies the Public School Code’s compulsory attendance requirements and that meets the requirements of Title 6 of the Civil Rights Act of 1964.“Educational Improvement Organization“ tax credits are awarded to nonprofit organizations only. The programs funded with these tax credits offer a different focus, delivery, methodology or skill training than is provided in a typical academic program of a public school.“Pre-Kindergarten Scholarship Organization“ tax credits provide tuition to eligible pre-K students to

attend a pre-K program operated by, or in conjunction with, a school within Pennsylvania. A school includes any public or non-public kindergarten, elementary school or secondary school.There are still credits available for a new program offered by the DCED, the “Opportunity Scholarship Tax Credit Program,“ which provides tuition assistance in the form of scholarships to eligible students residing within the boundaries of a low-achieving school to attend another public school outside of their district or non-public school.The Application Process Applications can be submitted to the DCED’s Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120, 717/787-7120, or online at [email protected]. Full requirement and application forms can be found at www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/educational-improvement-tax-credit-program-eitc. For further information, contact Tom Pendleton at MacDonald, Illig, Jones & Britton LLP at 814/870-7756 or e-mail [email protected].

Thomas A. Pendleton is a partner with MacDonald, Illig, Jones & Britton LLP and has been repre-senting businesses, nonprofit corporations and individuals in a wide variety of legal matters for more than 15 years. He is a grad-uate of the Vanderbilt University School of Law.

Legal BriefPlanning for Tax Credits Now Can Benefit Education in the Future

EDITORIAL > By Thomas A. Pendleton


Accuracy and reliability are everything in the demanding oil and gas industry. And no one understands this better than the experts at FMC Technologies Measurement Solutions in Erie, Pennsylvania.

At the company’s three-building campus located at 1602 Wagner Avenue in Erie, this team of highly skilled and experienced professionals design, develop, manufacture and test the most sought-after flow measurement and control products.

Measurement Solutions, a business unit of FMC Technologies, Inc., traces its local roots to 1926 when Erie Meter Company introduced the world’s first electric service station gasoline dispenser. When the company was bought by A.O. Smith, the foundation to such technological innovations as the Positive Displacement meter and the turbine meter were formed. Both products are still known throughout the oil and gas industry as the global standards for custody transfer measurement. Now it continues to produce the most precise and rugged meters in operation today and leads the industry with advanced metering solutions.

With 250 employees in Erie, 140 at its Ellerbek, Germany site, and another 60 employees at the U.S. regional sites, including Atlanta, Georgia; Canton, Ohio; Houston and Odessa, Texas; Torrance and Bakersfield, California; Denver, Colorado; and Tulsa, Oklahoma, FMC Technologies Measurement Solutions continues to grow to meet the needs of the industry and customers it serves.

All business segments of FMC Technologies are experiencing strong growth initiatives which allows Measurement Solutions the ability to offer unique opportunities to current and potential employees.

According to Marketing and Product Promotions Manager Carol Nicotra, FMC Technologies is expecting its employment level to reach 19,000 employees over the next three years. That number equates to approximately 12,000 new employees globally due to attrition and growth projections.

“This allows people to begin their career in Erie and have the opportunity to relocate to any of our global operations,“ states Nicotra. “That enhances our ability to attract, retain and develop new employees.“

Jim Ertl, Measurement Solutions vice president and general manager adds, “At FMC Technologies, you don’t have to spend 30 years in the same position or even the same discipline. There are career opportunities, and if you are willing to invest in yourself, we will invest in you as well.“

THE MEASUREMENT SOLUTIONS EXPERTS

FMC Technologies Measurement Solutions has developed mentoring and intern programs to cultivate and grow its work force. Its parent company, FMC Technologies, employs 16,800 workers around the globe, including 250 in Erie, Pennsylvania.

James ErtlVice President and General Manager


About: FMC Technologies Measurement Solutions designs, manufactures and services the precision products and systems used to measure and control liquids and gases in industrial applications. The business unit is owned by FMC Technologies, Inc. a $6-billion multinational corporation comprised of three business segments — Subsea Technologies, Energy Infrastructure, and Surface Technologies.

History: Established in 1926 as the Erie Meter Company, which was founded by L.O. and N.A. Carlson to manufacture service station pumps. Eventually became the Smith Meter Company, and then went through several acquisitions by the A.O. Smith Meter Company, Geosource, and MOORCO International. In 1995, the company was acquired by FMC Corporation. In 2001, FMC Technologies, Inc. spun off from FMC Corporation.

Work Force: Employs 250 at 1602 Wagner Avenue in Erie, 140 in Ellerbek, Germany, and another 60 employees in branch sites, including Atlanta, Georgia; Canton, Ohio; Houston and Odessa, Texas; Torrance and Bakersfield, California; Denver, Colorado; and Tulsa, Oklahoma.

Innovative Products: The product offering includes PD meters, conventional turbine meters, helical turbine meters, electronic presets and high-tech ultrasonic meters, which use no internal parts to measure flow.

Markets Served: The business has a global presence in the oil and gas industry. Its measurement products can be found anywhere in the world, including Asia Pacific, the Middle East, North America, and South America, for example. In fact, the majority of their products are installed outside of the United States and the growing development of shale plays in North America, such as Utica and Marcellus, have provided an increase in opportunities for FMC Technologies Measurement Solutions.

Website: www.fmctechnologies.com

A Leader in Manufacturing-Education PartnershipsFMC Technologies industry recognition as “measurement experts“ has not come without investment of both time and resources. The company has invested heavily in its employee training, as well as longtime manufacturing-education partnerships.

One of its most progressive and exciting endeavors has been FMC Technologies partnership with Penn State Erie, The Behrend College — an affiliation started by Measurement Solutions Global Engineering Manager David Resch and Ralph Ford, Ph.D., director of the college’s School of Engineering. For the past 10 years, Measurement Solutions has collaborated and developed a strong internship program with Penn State. The program, which initially focused solely on engineering, has now expanded to 29 interns working in multiple disciplines, including engineering, accounting, marketing, customer service and information technology (IT).

One of the benefits of the intern program is the ability to mentor new employees and interns with veteran employees allowing the company to ensure a strong bench strength while building the individual’s skill sets.

Complementing this infusion of talent has been the recent manufacturing-education initiative launched by Measurement Solutions with support from Penn State Erie to develop the business unit’s $500,000 Design Center. The brand new engineering facility was established so that student interns, currently a total of 12 from Penn State Behrend, can gain practical, professional experience outside the classroom.

While at the new Design Center, students work approximately 12 to 15 hours per week during the school year, designing subsea components for FMC Technologies Subsea business segment, which accounts for 82 percent of the company’s entire business. During the summer, these interns will travel to Houston, Texas, for what the company describes as an intense “bootcamp“ to get hands-on training with the engineering and production teams there.

“The major benefit of the Design Center is that it will assist in FMC Technologies projected growth plan and the need to fill engineering positions,“ explains Kyle Anderson, Measurement Solutions’ Design Center manager. “Here, we can take someone who is in school and introduce them to the company’s culture and, in their senior year, offer them a full-time position at any one of our Subsea facilities around the world. It’s a benefit for the interns and the company.“

Both the Design Center and intern programs have become successful feeder systems for future hires. Since this partnership has been so successful, company officials say, Measurement Solutions also has developed a close working relationship with the Erie Institute of Technology to develop its production floor work force as well.

“Career development in a successful business requires ongoing training and advanced skill sets from one end of the organization to the other,“ notes Ertl. “And that is why we have reached out to educational institutions in the area to provide us the talent and training.“

A Growing Global Presence and Community CitizenWith 16,800 employees and 30 manufacturing facilities in 16 countries, FMC Technologies is a company recognized around for the world for its technology solutions in the energy industry — and a highly sought-after employer. >

FMC Technologies Measurement Solutions’ business unit is upgrad-ing its technology, facility and equipment. The installation of this $1.3-million vertical machining center began this past November.

FMC Technologies Measurement Solutions designs, develops, manufactures, installs and supports some of the most rugged and precise measurement instruments in the world today.


Students from Penn State Erie, The Behrend College work closely with Kyle Anderson (center), Design Center manager, to get hands-on training in FMC Technologies’ growing Subsea Technologies business segment.

In 2012, FORTUNE recognized FMC Technologies as the World’s Most Admired Oil and Gas Equipment, Service Company. That same year, the roughly $6-billion corporation climbed to No. 13 on Forbes’ list of the World’s 100 Most Innovative Companies, up from No. 18 in 2011, and reached No. 7 for Most Innovative Company in the United States.

“The reason we are most admired is because we have core values that we live by and each and every employee is expected at all times to represent,“ says Ertl. “Also, our safety record is renowned throughout the world, and we set the standard for our safety and our concern for our employees.“

As a global leader, FMC Technologies also recognizes the responsibility it has to the communities in which it operates. A longtime supporter of Diehl Elementary School, Measurement Solutions recently contributed to their playground project. Employees also regularly participate in team and individual charitable events and have committed to creating and funding a new exhibit at the Erie Children’s Museum.

An Investment in Technology That Tests Industry LimitsThe precision in which FMC Technologies products need to be designed and manufactured, and their ability to sustain the harshest environments is one of the reasons that so many customers turn to Measurement Solutions for their metering needs. It’s also the reason that its parent company, the multinational corporation FMC Technologies, has invested so heavily in its Measurement Solutions business unit — and northwest Pennsylvania.

FMC Technologies is currently in the third year of a five-year revitalization and expansion of the Erie-based operation, investing $25 million to $35 million in upgrades to the facility, tooling and its state-of-the-art ISO/IEC 17025:2005 accredited Flow Research and Test Center. The “Flow Lab,“ as it is commonly called, is the most comprehensive hydrocarbon accredited testing facility of its kind in the world.

Inside the high-tech laboratory, FMC Technologies engineers and technicians can simulate the conditions and environment under which its products must operate. Depending on the types of fluids, viscosity and temperature, a customer can witness the testing of their meters over the most dynamic operating ranges. There they can utilize the lab for validation of their products and specific requirements and know that FMC Technologies’ testing standards meet the world standards as set by the International Organization of Legal Metrology (OIML) in France.

The other advantage of the Flow Lab is FMC Technologies’ ability to conduct more research and development, bringing in measurement

experts and scientists from all over the globe to push advancement of multiple technologies.

“One of the things that we have been able to do is to reduce the time needed for new product development and that is very important for us to remain leaders in custody transfer measurement,“ says Ertl. “As exploration and product requirements are changing, our ability to simulate the dynamic conditions allows us to leapfrog traditional solutions in some areas of the industry.

“This is where we are able to work very closely with our customers at a much higher level, going beyond just providing a meter,“ he adds.

The Flow Lab is one of Measurement Solutions’ most effective selling tools because of the unique advantage it offers the customers. Another dynamic feature is its 257,000-square-foot production facility and warehouse, which enables customers to view the manufacture and development of their products.

“We are consistently complimented by customers regarding the level of expertise that our employees demonstrate — friendliness, professionalism and dedication. That equates to world-class products of which we are recognized in a zero-tolerance environment,“ says Ertl.

According to FMC Technologies, accuracy and repeatability of its products is key to the success of its customers like Shell, BP and Enbridge and national oil companies, such as PDVSA in Venezuela, Statoil in Norway and Saudi Aramaco in Saudi Arabia. Meters such as the advanced ultrasonic meter must be so exact that they measure within plus or minus .027 percent of the true value — or approximately three teaspoons out of a barrel of oil. If any of these calculations are off by even half a percent, millions of dollars could be lost per year.

“Our meters must meet tight tolerances and they must be accurate and reliable,“ says Plant Manager Ed Saffron. “There is no room for error.“

Simply put, adds Ertl, “Our equipment has to work every time, all the time.“

For FMC Technologies and its employees, it’s this determination that pushes them to continue to do things right and find ways to do it better. The results are reflected in the workmanship and product quality that FMC Technologies Measurement Solutions is recognized.

“It is absolutely a privilege to be a part of an organization that consistently delivers world-class products,“ says Ertl. “We compete on a daily basis with corporations far larger than ours and we continue to represent the best in the measurement business located in Erie, Pennsylvania.“ For more information about FMC Technologies Measurement Solutions, visit www.fmctechnologies.com.

FMC Technologies Measurement Solutions has partnered with Penn State Erie, The Behrend College to develop its new engineering Design Center. The Design Center will not only enhance the business’s intern program but also create a feeder system for future FMC Technologies employees.


HR ConnectionCOMPANIES EXPECTED TO INCREASE HIRING OF NEW COLLEGE GRADUATESA recent survey finds employers will increase hiring of new four-year college graduates about 5 percent in 2013. Demand for graduates with associate’s degrees is expected to increase more sharply, while MBA hiring appears headed for an unexpected decline.

The 42nd annual survey from Michigan State University’s College Employment Research Institute collects responses on hiring plans from more than 2,000 U.S. employers.

For four-year college graduates, the report finds employers are looking most actively for business-related majors but demand is also strong for “all majors“ — an indication many employers want critical thinking skills that can be developed in many different courses of study. Demand for engineering,

accounting and computer science majors appears somewhat softer than in previous years.

EMPLOYERS HELD HEALTH-BENEFIT COST GROWTH TO 4.1 PERCENTDecisive action by employers in 2012 — for example, moving more employees into low-cost consumer-directed health plans and beefing up health management programs — was rewarded with the lowest average annual cost increase since 1997.

According to the National Survey of Employer-Sponsored Health Plans, conducted annually by global consulting firm Mercer, growth in the average total health-benefit cost per employee slowed from 6.1 percent in 2011 to just 4.1 percent in 2012. Cost averaged $10,558 per employee in 2012. Large employers — those with 500 or more employees — experienced both a higher increase (5.4 percent) and higher average cost.

Employers expect another relatively low increase of 5 percent for 2013. However, this increase reflects changes they plan to make to reduce cost; if they made no changes, cost would rise by an average of 7.4 percent.

Mercer’s nationally projectable annual survey includes public and private organizations with 10 or more employees; 2,809 employers responded in 2012.

“Employers are very aware that in 2014, when the health reform law’s provisions kick in, they will be asked to cover more employees and face added cost pressure,“ stated Julio Portalatin, president and CEO of Mercer.

To download a copy of the Manufacturer & Business Association’s most recent health-care reform update by Lorin Lacy of HR consulting firm Buck Consultants, visit www.mbausa.org.


Dan Monaghan is the director of Training at the Manufacturer & Business Association.

DEPARTMENTS > Contact: Stacey Bruce

Not a day goes by where you are not faced with making some sort of a de-cision. Thankfully, most are not of the critical, gut-wrenching kind. But every once in a while, we are faced with a decision that can have far-reaching effects. How well you make that decision can be a career-defining mo-ment. Below are three things to keep in mind when making key decisions.

• Who will be impacted? Most decisions lead to change and change occurs much more rapidly if those impacted by the change have had some input early on in the process. List those involved and bring them in on the discus-sions. Those you ignore will find reasons to resist the change and help to slow your desired result.

• Have you done your due dili-gence? Sometimes in our quest

to make a decision and move on, we don’t fully investigate all the facts. Take the time to research, interview and observe what might really be happening before pulling the trigger. Hasty decisions can create problems that can take a long time to fix.

• Make the decision. People respect leaders who make deci-sions. They won’t agree with all of the decisions you make, but they will respect you less if you don’t step up to the plate and take a swing.

In the end, we win some and we lose some. That’s the nature of decision-making. But if you involve others, practice due diligence and are willing to pull the trigger, you will enhance your reputation as a leader who isn’t afraid to make the tough call.

With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area. For more information, please contact me at 814/833-3200, 800/815-2660 or [email protected]. I also en-courage you to visit the Association’s website, www.mbausa.org, to learn more about our upcoming offerings.

Have a Tough Decision? Here are Three Ways to Make the Process Easier

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Is your hand up or is it out? What is your value in this new world?In the book The Coming Jobs War, author Jim Clifton writes, “The will of the world is first and foremost to have a good job. Everything comes after that. A good job is a social value.“I am writing this article because there is not a day that goes by that our company, customers, competitors, educators, union leaders, community leaders and elected officials all say there are qualified candidates to fill the jobs we have open.Yet every day I hear from jobseekers who believe there are no jobs available.In the Erie community alone, we have approximately 12,500 unemployed people who are looking for work.So, what is the reason for this disconnect? And how do we connect the dots?In my experience as a longtime businessman, we need to connect them one job at a time — and we need to do it locally.Because, as Clifton writes, “The federal government cannot create sustainable jobs, just short-term ones.““Jobs are as local as politics,“ he continues. “Cities are job power plants of human energy, which creates jobs through innovation and especially through job entrepreneurship.“In Erie, we have an estimated 5,000 employers. If each company hired one person, we could reduce unemployment by 40 percent. And by growing our work force locally, we could gain efficiencies in the system, which could be translated into real value for our community.That is why O*NET (the Occupational Information Network) is so valuable. O*NET gives everyone the ability to access data on job characteristics and worker attributes. This comprehensive library includes information on the knowledge, skills, abilities, interests,

preparation, contexts, and tasks associated with more than 1,122 O*NET occupations.And it’s easy to access. Simply visit the website www.onetcenter.org, go to the top right corner, and type in what you do. You will then find the appropriate O*NET code.The Summary report will give you a detailed job description and advise you on what job zone and education is usually needed to perform the job, as well as what interests, work styles and values are needed for the job code. It also will give you related occupations.More importantly, it will give you value for this occupation — both nationally and by state — plus how many people are in the field, as well as employment trends.In my opinion, O*NET is one of the most transformational resources for both employers and jobseekers.For business owners, it is an imperative tool that you can easily use to determine where you are at, and where you want to go with your human capital. I know because we have used it to update all of our job classifications, hiring practices for each job, and our overall company budget.By using O*NET and its concrete information, we can now effectively utilize CareerLink to find candidates. We can constructively talk to educators on what programs we need to produce the most profitable work force. And, we can inform students about what jobs are available and give career counseling.If O*NET sounds like a valuable tool, that’s because it is. The only cost required is an Internet connection and the time to figure out how you can bring value to the equation.So ask yourself: Is your hand going to be up or is it going to be out? With a tool like this, I assure you that we can work together to improve our work force and our community.

Jim Rutkowski Jr. is the vice president of Erie, Pennsylvania-based Industrial Sales & Mfg., Inc., a manufacturer and supplier of quality machined, fabricated and assembled components since 1967. To contact him, please email [email protected].

Valuable Web Tool Can HelpConnect Employers, Jobseekers


IF I HAVE EMPLOYEES WHO ARE IMPROPERLY CLASSIFIED AS INDEPENDENT CONTRAC-TORS, WHAT LAWS COULD IT IMPLICATE? While most independent contractor misclassification disputes occur in the wage-and-hour context, disputes also can arise under federal and state discrimination laws, tax laws, and unemployment laws, just to name a few.

Implementation of the Patient Protec-tion and Affordable Care Act (PPACA) also raises the prospect of liability, as it requires each employer with a specific number of employees to provide them with health benefits or risk paying an excise tax (based on the number of employees). Having the status of an “employee“ for purposes of many laws affords such individuals

greater rights and benefits than if they were independent contractors.

HOW DO I DETERMINE WHO IS AN EMPLOYEE AND WHO IS AN INDEPENDENT CONTRACTOR?There is no single test to determine who is an employee versus an inde-pendent contractor; rather the correct analysis depends on the relevant stat-ute or claim. All tests, however, take into consideration, in whole or in part, the degree of control the purported employer has over the purported em-ployee’s performance of the job.

Every test, whether it is the Internal Revenue Service (IRS) test, or the test used under the Fair Labor Stan-dards Act, is heavily fact-driven with no single factor being dispositive. The IRS has stated that, “there is no ’magic’ or set number of factors that

’makes’ the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.“

HAVE A LEGAL QUESTION? GET ANSWERS.At the Manufacturer & Business Association, we know that urgent employment issues can arise at a moment’s notice.

As an Association member, you can call our certified HR specialists and labor and employment law attor-neys anytime for counsel on a broad range of workplace-related issues, at no charge.

Call the Association’s Legal Hotline today at 814/833-3200 or 800/815-2660!

Legal Q&A


The U.S. Department of Labor (DOL) announced its “Misclassifica-tion Initiative“ in September 2011, and with President Obama’s re-elec-tion to his second term, employers should be aware of the continued federal and state enforcement ef-forts under way to ensure that em-ployees are not being misclassified as independent contractors.

Along with the DOL’s Misclassifica-tion Initiative, came a Memorandum of Understanding (MOU) between the DOL and the Internal Revenue Service (IRS). According to the DOL, “under this agreement, the agen-cies will work together and share information to reduce the incidence of misclassification of employees, to help reduce the tax gap, and to improve compliance with federal labor laws.“

The DOL is actively pursuing MOUs with states as well. Currently 13

states have signed such MOUs. Ad-ditionally, some states are enacting separate legislation that addresses misclassification, such as Pennsyl-vania’s Construction Workplace Misclassification Act, which targets specific industries where legislators believe misclassification is more likely to occur.

The correct use of independent contractors can undoubtedly con-tribute extensively to an employer’s operations and bottom line. Inde-pendent contractor use has always involved some risk but with state and federal governments both searching for ways to increase tax revenues in these hard economic times, the risks of using independent contractors continues to increase. In lawsuits across the nation, workers argue that they have been misclassi-fied as independent contractors and deprived of employee benefits.

While determining whether a worker is an “independent contractor“ or an “employee“ is a very fact-specific analysis, employers should review their use of independent contractors and ensure that their workers are correctly classified.

The Association’s Legal Services Division can assist you with a va-riety of employment law issues. Please contact me at 814/833-3200, 800/815-2660 or [email protected] for more information.

Misclassification Missteps: Know Who Your Employees Are

DEPARTMENTS > Contact: Tammy Lamary

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.


Anniversary information is based on member records as of November 2012. We regret any errors or omissions. Please

contact the Manufacturer & Business Association with updated information for inclusion in future publications.


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KIDDER WACHTER ARCHITECTURE HIRES PROJECT MANAGERKidder Wachter Architecture and Design in Erie announced that Sean Sexauer has joined the firm as a project manager.Sexauer is an Erie native and graduate of Technical Memorial High School and Triangle Tech with a degree in specialized technology for architectural computer-aided drafting and design. He has almost 20 years of professional experience with architectural firms in the Columbus, Ohio area, specifically as a project manager for clients in the national retail and hospitality markets. Kidder Wachter Architecture and Design is a full-service architectural and interior design firm that designs and a broad spectrum of building types and provides building consulting services to clients in Maryland, New York, Ohio and Pennsylvania.

SEVEN KNOX ATTORNEYS NAMED TO BEST LAWYERS 2013 Guy C. Fustine, Robert M. Bauer, Thomas A. Tupitza, Francis J. Klemensic, Richard A. Lanzillo, Peter A. Pentz, and Neal R. Devlin, shareholders at Knox McLaughlin Gornall & Sennett, P.C. in Erie, were recently selected by their peers for inclusion in The Best Lawyers in America® 2013. Since it was first published in 1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Attorney Fustine was selected for both Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law and Litigation – Bankruptcy. He is among a distinguished group of attorneys who have been listed in Best Lawyers for more than 20 years. Attorney Bauer was selected for Information Technology Law. He has been included in Best Lawyers for the past three years and is the founding editor of SciTech Lawyer. Attorney Tupitza was selected for

Public Finance Law. A past president of the Pennsylvania Association of Bond Lawyers, he has been active as bond counsel in tax-exempt financing transactions in western Pennsylvania for more than 25 years. Attorney Klemensic was selected for Medical Malpractice Law – Defendants. He has successfully defended hospitals, physicians, dentists, podiatrists, rehabilitation facilities, therapists and psychiatrists in both state and federal courts throughout Pennsylvania. Attorney Lanzillo was selected for Commercial Litigation. He has extensive experience in complex commercial and employment litigation and has successfully litigated numerous cases to verdict and other disposition in state and federal courts. Attorney Pentz was selected for Workers’ Compensation Law – Employers. He represents employers and insurance carriers and counsels employers in workplace safety programs, return-to-work programs, accident investigation and accident prevention. Atttorney Neal R. Devlin was selected for Commercial Litigation. His practice is focused primarily on litigating contract, business and intellectual property disputes.

ACHIEVEMENT CENTER ANNOUNCES NEW DIRECTORS The Achievement Center, headquartered in Erie, recently promoted Steve Wilcoxon, a licensed professional counselor, as the co-director of the Taking Flight Program and hired Adam Bratton as director of Development. In his role, Wilcoxon will provide oversight to Taking Flight Outpatient Therapy, a preteens program designed to provide mental health and behavioral health services for young children, and adolescents

with a diagnosis other than ADHD or autism. He has a bachelor’s degree in psychology and a master’s degree in clinical psychology from Edinboro University. Wilcoxon has been employed with the Achievement Center for more than four years and is a licensed professional counselor in Pennsylvania.As the director of Development, Bratton’s focus is primarily in donor cultivation for major gifts through an increase in donor relationships and donor support. He has a bachelor’s degree in political science from Allegheny College and a master of public administration degree from George Mason University. In addition, the Center has announced several new appointments to its board for 2012-2014. Jim Stoik will serve as president, and Dan Teed as vice president of the board.Stoik, CPA, CPCU is vice president — Internal Audit at Erie Insurance Group, while Teed is president of Wedgewood Investors, a Registered Investment Advisor that specializes in investment management for individuals and institutions. Ray Moluski, Jim Carlucci and Mike Neubauer also have been appointed as members of the board.Moluski is vice president of General Services at UPMC Hamot; Carlucci is vice president, Strategic and Integrated Services, at Erie Insurance Group; and Neubauer, CPA, is a manager at McGill, Power, Bell & Associates. The Achievement Center is a nonprofit organization that serves children from birth to 21 years with physical disabilities, autism spectrum disorders, ADHD, developmental delays and emotional/behavioral problems.

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January 2013 Business Magazine

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Transcript of January 2013 Business Magazine