Professional Documents
Culture Documents
The Business Journal March 2010
The Business Journal March 2010
com
ISSN 1047-8582 Vol. 26 No. 16 MARCH 2010 $2.50
Manufacturers
Strike Gold in
Marcellus Shale
Key to tapping gas reserve is
technology that enables cost-
effective horizontal drilling.
By Dan O’Brien
E
very industry loves a patient investor. But
400 million years is a l-o-n-g time to wait for
a return.
The rock formation known as the Marcellus Shale
– a comparatively thin layer of sediment formed and
compressed during the Devonian Period and buried
deep beneath eastern Ohio, western and central
Pennsylvania and southwestern New York – is today
yielding riches for energy companies, suppliers,
landowners and auxiliary businesses throughout
the region.
It’s because the shale contains what specialists are
calling one of the largest, most significant reposito-
ries of natural gas in the United States – a mother
lode with enough gas to supply the energy needs of
Tom Bailey and Hogan Petrick work at Dearing Compressor, which is expanding to capitalize on the Marcellus Shale gas field. See MARCELLUS SHALE, page 44
W hen an economic
development effort is so
big that it all but eclipses
a $64 million project, that’s not a bad
situation to have.
the Youngstown/Warren Regional
Chamber.
That “significant investment,”
though, has been “somewhat eclipsed,”
he acknowledges, by speculation over
In any other year, Patriot Special the past several months on whether
Metals Inc.’s plans to build a 210,000- V&M Star Steel would move forward
square-foot plant – a project that could on its own project. On Feb. 15, the
be the first phase of the company’s company confirmed plans to build a
long-term expansion plan – “would $650 million rolling mill near its plant
have been the shining star of what in Brier Hill.
we’ve done,” muses Walter Good, vice “These are two big projects the
president of economic development, See BIG PROJECTS, page 10
Walt Good and Eric Planey share development leadership roles at the Regional Chamber.
2 MARCH 2010 The Business Journal
The Business Journal MARCH 2010 3
Inside
Cell phone etiquette is evolving. who finds many professionals leave their phones on
during lunches and presentations.
By Jeremy Lydic “With the way students are today, they are perma-
nently attached, as many professionals are, to their
W
ith voice mail, e-mail, texting and the devices,” Dennison says. “We find that they cannot
Internet – not to mention the many seem to shut those off.”
“apps” – all accessible in one mobile Aside from being rude, focusing on a cell phone
communications device, many professionals can’t when your attention should be elsewhere hinders
imagine life without their cell phones. And while development of communication skills because eye
21 Manufacturers Must Diversify they all agree on the convenience, they have different contact is inhibited, Dennison says. Missing verbal
YSU’s Micheal Hripko and MAGNET’s ideas on what is considered professional use. cues, such as a look or a nod of the head, could cause
Ken Walter participated in a seminar Feb. One would think the basics go without saying, a listener to miss out on the message, she says.
25 that outlined how manufacturers can but even the most rudimentary elements of cellular Despite their convenience, relying on mobile
identify their core strengths, develop new phone etiquette are often forgotten, says Chris Den- devices can also encourage laziness in communicat-
products, modify existing ones, and iden- nison, an instructor of marketing at Youngstown ing, Dennison says. She finds students will use their
tify and enter new markets. State University. Dennison, who teaches a class on cell phones to e-mail her a question, only to find
business professionalism, says texting and leaving minutes after she responds that the same student
a phone’s ringer active during classes and meetings has left five more in her inbox. Rather than compose
are not only inappropriate but prohibited. Regard- a comprehensive e-mail, “some would prefer to do
less, some students (and faculty) haven’t gotten the texting,” which results in misspelled words and an
message. inbox full of messages, she says.
Students aren’t the only violators, says Dennison, See HOLD THE PHONE! page 4
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Project Hire
Reimburses
Employers
Program uses stimulus dollars to
reimburse employers for on-the-
job training of new hires.
By Maraline Kubik
I
t’s first-come, first-serve, and $8 million is up
for grabs – available to employers who hire new
workers before the money runs out.
Project Hire, for Hometown Investment in Re-
gional Economies, is designed to help create jobs in
Ohio by reimbursing employers up to 50% of a new
hire’s wages – up to a maximum of $6,000 – while Neil Yutkin, ODOD business service representative.
that employee completes on-the-job training, reports
Neil Yutkin, a business service representative with unemployment compensation – UCRS is what we
the Ohio Department of Development. Reimburse- call the program – and been approved by them.”
ments, Yutkin notes, are made in cash rather than Project Hire came about, Yutkin continues, “when
issued as a tax credit. it was decided to prioritize getting people who are
Project Hire is funded by the American Recovery currently out of work back to work. The idea was
& Reinvestment Act and is administered by ODOD we would take a pot of money from the American
in conjunction with the Ohio Department of Educa- Reinvestment & Recovery Act and put it into an
tion and the Ohio OneStop centers. on-the-job-training program.”
Between five and 10 workers in the Mahoning Thus far, $2 million of the funds alotted have been
Valley have been hired under the program so far, spent, Yutkin reports, with the rest being disbursed
Yutkin reports, and he’s hoping more employers “on a first-come, first-serve basis to employers
in Mahoning, Trumbull and Columbiana counties throughout the state.”
become involved before other regions of the state The number of jobs that could be created is
empty the pot. uncertain, but Yutkin says reimbursement funds
There are no limits on how much funding indi- will be provided “for as many as we can until the
vidual employers or employers in a specific region money runs out.”
can receive, so whoever acts first will benefit most, Unlike most regions throughout Ohio, Yutkin
Yutkin explains. In some cases, employers seeking says, the Trumbull, Mahoning & Columbiana Coun-
funding through Project Hire have been approved ties OneStop, through area career and technical
in less than a day. centers, screen job applicants to deterimine if they
While industries eligible to participate must cre- are good candidates for adapting to the new jobs
ate jobs that pay a minimum of $8 an hour, Yutkin that will be created.
says Project Hire is not limited to manufacturers. Once new hires complete on-the-job-training,
Employers can be in any one of 11 targeted indus- employers must retain them for a minimum of six
tries or be deemed by local OneStop offices as being months to qualify for the reimbursements, Yutkin
in demand in their service areas. notes. The program cannot be used to call back fur-
The 11 target industries are: loughed employees or to replace laid-off workers.
•advanced energy / environmental technologies “This is a wonderful opportunity for this Valley,”
•aerospace and aviation Yutkin says. “In most bad economic times, it is the
•agriculture and food processing best time to bring on new employees and train them
•bioscience and bioproducts because you have the time to work with them. Being
•corporate and professional services able to use this money to offset the costs of their
•distribution and logistics training means you can start training people now as
•instruments, controls and electronics the business in this Valley is picking up. With all the
•motor vehicle and parts manufacturing good stuff we’ve been hearing lately,” Yutkin says,
•polymers and advanced materials “this is the best time to make use of this funding to
•health care be prepared for when the resurgence comes.”
•finance and insurance. With the recent announcement that V&M Star
“Individuals qualify through one of two ways,” will move ahead with plans to build a $650 million
Yutin continues. “First thing is, they have to be a rolling mill in Youngstown, Yutkin expects employ-
dislocated worker. The other thing is, they have to ers in the construction industry to become eligible
either have completed and been approved by the to participate in Project Hire. Construction, he says,
local work-force and investment groups – the One- could easily be deemed as an “in-demand” occupa-
Stops – and/or they have to have gone through an tion in the tri-county region.
The Business Journal
alChamber MARCH 2010 7
Region
Humphries Pursues Regional Agenda
Regional Chamber CEO sees the
larger development picture – the
Pittsburgh to Cleveland corridor.’
By George Nelson
T
he president and CEO of the Youngstown/
Warren Regional Chamber, Thomas M.
Humphries, admits he had “a bit of a reputation”
when he was tapped to chair what was then the
Warren Area Chamber of Commerce.
Having overseen the merger of the Junior
Achievement programs in Mahoning and Trumbull
counties as local chairman for that organization,
Humphries had been involved in regionalizing
area nonprofits. In fact, one area nonprofit decided
against asking him to be its chairman when he
said he would “definitely” explore a merger with a
nearby affiliate.
“I understand that,” he says. At the same time,
he recognizes that the number of residents in the
Mahoning Valley has shrunk. “The fact is, we are a
smaller community than we were back in the ’60s,
’70s and ’80,” he says. Looking back on chamber
officials’ recent trade mission to China, he notes
they were dealing with the Shandong Province,
with a population of 90 million people. Israel, the
destination of a subsequent chamber trip, has seven
million people.
“So you have to look bigger,” he says. “Truthfully,
I think we need to look at the Pittsburgh-Cleveland
corridor. It might offend somebody, but I think we After nearly 13 years as CEO and president of the Regional Chamber, Thomas M. Humphries says he still enjoys his job.
need to promote that corridor because what happens
there helps us, too.” suggested he should consider taking on the job of Cathy, recalls, he decided to move into management
Humphries has been chairman of the Youngstown/ going in and repairing it. and so he studied engineering, eventually rising to
Warren Regional Chamber since it was formed in “There was very little process in place. It was general manager of the company’s Trumbull County
1993 with the merger of the Youngstown, War- financially challenged,” he says. operations. He was honorably discharged from the
ren and Niles chambers of commerce. A few years Humphries’ involvement with area nonprofits union, and still carries his union card with him,
later, he was preparing to step down after 29 years began as he advanced though the company then she says.
with the phone company then known as Sprint as known as United Telephone of Ohio, after separating At United Telephone, which later became Sprint,
it reorganized, and asked his attorney at the time, in 1969 from the Air Force after a four-year hitch Humphries says he used to go into “challenging ar-
John Pogue, to review the early retirement package during which he worked in telecommunications. eas” and address the issues involved. “What I found
he had been offered. Starting out in the United Telephone warehouse myself doing is I’d go into a job and, within two to
At the time, Pogue was the regional chamber’s cleaning telephones, he moved up in the company three years, I’d have it cleaned up to where it needs
chairman. Pogue, Humphries recalls, told him that in various positions such as lineman and installer. to be,” he says.
the chamber was facing “significant challenges” and While Humphries was still school, his wife, See HUMPHRIES, page 8
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10 MARCH 2010 The Business Journal
O
country.
ld family recipes make for the best meals.
Bringing them to the masses at a fair price
– and a profit – keeps Chieffo’s homemade
pasta feeding one of the hungriest markets in the
which is sold at lower prices, and is easier and less
expensive to store and stock.
Chieffo’s frozen pasta also competes with large
national and regional companies that are in better
positions to promote their brands and build name
The business was born nearly 30 years ago when recognition, Yannucci says. Entering new markets is
the Chieffo family, Dominic and his son, Nick, also challenging because what sells best varies from
began making pasta for a few local grocers, says community to community.
Richard Yannucci, owner and president of In the Mahoning Valley, where there is a large
Chieffo’s, a Niles-based company that ethnic population, Yannucci says cavatelli is the
makes a complete line of frozen pasta top seller. In the Pittsburgh market, where many
– cavatelli, spaghetti, linguini, gnocchi, residents trace their ancestry to central Europe, gn-
cheese ravioli, beef ravioli, tortellini and occhi – bite-sized dumplings – outsell the cavatelli in
stuffed shells. many of the supermarkets and grocery stores where
The Chieffos perfected the recipes Chieffo’s frozen pasta is available.
and added their name to the business “All of the [major grocery store] chains” that
in 1981, Yannucci continues. Nick serve Ohio, western Pennsylvania, West Virginia,
sold the business to his son, Mark, Maryland, Michigan and Connecticut carry Chieffo’s
in 2000, a dozen or so years after line, Yannucci reports, including Marc’s, Fishers
Yannucci had joined the com- Foods and Giant Eagle.
pany as a sales representative. Yannucci says Chieffo’s frozen pasta is also
Five years lat- packaged under several private labels,
er, Mark sold expanding its availability to
the business to a much wider geographic
Yannucci.
Over the
years, the
�������
��� � area that encompasses the
entire Midwest. Chieffo’s
frozen pasta is also served in
product restaurants and sold by the
line and single serving by a regional
geograph- vending company.
ic area While the majority of busi-
served has Sponsored by: ness is local and regional
grown, but the secret to the – the region from Cleveland to
company’s success has always ComDoc Pittsburgh is second only to the
been “doing what we do best,” Boston-to-New York corridor when
Yannucci reflects. That means it comes to per-capita consumption of
making high-quality pasta that pro- pasta – Yannucci expects much of his
vides consumers a good value and grocers company’s growth will come from expanding
an opportunity to turn a profit. its private label business.
Introducing new products could pave the way
Richard Yannucci, owner and president of Chieffo’s, for some growth under the Chieffo’s banner but,
displays one of his company’s most popular products. See CHIEFFO’S, page 12
12 MARCH 2010 The Business Journal
E
ver dream you were a rock star, famous athlete
or TV actor?
With PTV you can be, sort of.
PTV is a public-access community television sta-
tion operated by Perkins Communications that airs
on Time Warner Cable channel 9 in Youngstown and
channel 15 in Warren. It serves more than 175,000
cable television subscribers and also streams live on
the station’s Web site, www.onlineptv.com.
Programming is primarily created by the viewing
audience and features area residents such as Jammin’
Johnson, a local hip-hop artist whose music videos
air on PTV and are available on demand on its Web
site, former state senator Thomas P. Gilmartin Sr.,
who hosts an educational program for preschoolers,
and Kristal Hart, an area native living in New York Joe Perkins says he operates the public television station, which serves 175,000 viewers, as a service to the community.
who provides coverage of sporting events – primarily
boxing – and interviews with athletes. Services and clock seven days a week, up and running. which require the handling fee. VHS tapes can also
sermons from area churches and local clergy also Revenues come from sponsorships, which are be submitted, Perkins says; they require a handling
air on the station, reports Joe Perkins, president of based on a Public Broadcasting Service model, and fee plus a charge for conversion to digital format.
Perkins Communications, as do performances by fees charged for programs that must air at specific Among the submissions PTV actively seeks are
Ballet Western Reserve. times, Perkins says. There is no advertising and no videos of community events, weddings of area
“PTV is a television station for the people where infomercials. residents, children’s sporting events and political
the things they care about are given time on TV,” Everything submitted is aired – there is no cen- commentaries. In fact, Perkins says, one of his
Perkins explains. sorship, he says – but submissions are broadcast at goals is to use the onsite television studio, inside
Students from Warren G. Harding High School random. “The only thing that we ask is that if there the Youngstown Business Incubator in downtown
in Warren produce some of the original programs, is adult content that they let us know and we’ll make Youngstown, to introduce individuals running for
including broadcasts of high-school basketball, Per- sure it’s on later,” Perkins explains. public office to the general public in a manner that
kins says. In addition, the station airs a news, sports Time Warner Cable’s community access guide- voters can “really get to know the candidate.” Other
and weather program “anchored by a robot, Maria,” lines specify that programming containing nudity TV stations offer sound bites, he explains, PTV’s for-
he says. “She’s one of our software developments.” or language of an adult nature will be broadcast mat allows for longer presentations and discussions
Software development is Perkins Communica- between midnight and 5 a.m. that can be presented in real time or rebroadcast at
tions’ primary line of business, its president says; While there is a charge for programs that must a variety of times on different days.
PTV is a community service offered at the company’s be broadcast at a designated time, he says most sub- “We did that with the State of the Union address,”
expense. Although the TV station is a commercial missions to be broadcast at random require only a Perkins says. “This was the only place you could see
venture, Perkins says he would be satisfied if “we nominal handling charge to cover the costs of load- it in its entirety [after it originally aired] without
break even and create a couple of jobs.” He’s hoping ing the content onto the servers. advertisements or commentary.”
the venture will eventually provide enough revenue Programming can be submitted using hyperlinks Independent films and other full-length programs
to hire two full-time employees and some part-timers to You Tube, Webcam feeds and Web pages, which submitted by viewers are limited to 27 minutes,
to keep the station, which is on the air around the are free, or DVDs and cell phone camera videos, shorts to five minutes and fillers to 12 minutes.
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14 MARCH 2010 The Business Journal
Journal Opinion
Photographer Tony Mancino
Rate Comparisons Cara J. McClure
Sales Manager Janet O’Malley
Account Executives Gail S. White
Dan Gonder
Art Director/ Fred Sipe
When he came to the Lordstown complex Feb. industrial development and innovation.”
23, the North America president of General Motors This region was also at the heart of the organized
Co., Mark Reuss, declared the plant “Ground Zero.” labor movement, and in the 1980s and ’90s was left
Here the heavily anticipated Chevrolet Cruze will be in despair at the void left by the retreat of the steel
produced and bring the return of better times to the industry. “The Mahoning Valley is one of the best
automaker, the region and the nation, he said. and most-often- referred-to illustrations of industrial
T he Business Journal is published semi- The automaker’s announcement that it would and economic development and evolution here in
monthly (twice a month) in Youngstown, Ohio. add a third shift – 1,200 more workers – to turn out the United States,” Lawson says.
Copyright 2010 by Youngstown Publishing Co. the Cruze came one week after V&M Star Steel an- So these developments ought to presage better
nounced it would build a $650 million rolling mill times. Certainly, they’re cause for optimism, espe-
All rights reserved. Reproduction or use, with- near its Brier Hill operation. That mill is expected to cially in an area inured to hearing setbacks.
out written permission, of editorial or graphic employ 350 workers once it’s up and running, and Of course, these jobs only begin to fill the void
content in any manner is prohibited. provide another 400 to 500 construction jobs in the left by the myriad closings, downsizings and layoffs
18 months needed to build it. we have suffered since 1977. Even as the announce-
Average Issue Readership: 45,000
The day after GM’s big announcement, TMK ments were being celebrated, workers at Denman
Mail Subscription Rates: $42 for 12 months; Ipsco said it would start a threaded pipe mill in Tire Corp. learned their plant will close if the com-
$77 for 24 months; $96 for 36 months. Brookfield. The week before, Revere Data opened a pany can’t secure financing or a buyer.
Back Issues: If available, $4.75 apiece financial research center in downtown Youngstown. Still, the economic developments of the last
prepaid (mailed); $3.25 apiece prepaid And there was more good news: O.A.O. Severstal is two weeks certainly provide a base to build on and
(picked up at our office). gearing up to reopen its steel mill in Warren. The restore our confidence. “We see projects that are
Chester Hoist Division of Columbus McKinnon announced around the country and this is as big
Submission Policy: News articles and photographs
Corp. will more than double its presence in Colum- as it gets,” reflected Walter Good, vice president of
may be submitted but cannot be returned. We reserve
the right to select and edit all articles and letters.
biana County by spending $2 million to reopen the economic development at the Youngstown/Warren
All submissions become the editorial property of The former Solartec plant in Salem and hire 90 employees Regional Chamber, at the V&M announcement.
Business Journal. Submissions may be edited and over the next three years. That project “opens up so many doors to talk about
may be published or re-used in any medium including Sure enough: We may be recovery’s ground zero. what’s going on in the Valley and tell the story that
Business Journal television and radio reports and the “We’ve always been an industrial bellwether for this is a great place when you are looking to make
Daily Business Journal Online. the country,” reflects Bill Lawson, director of the a major investment,” he said.
Locally owned by the Mahoning Valley Historical Society. Lawson often Let the good news spread.
refers to the Valley as “the Silicon Valley of the early
Youngstown Publishing Co. 20th century when it was on the leading edge of In-depth story, pictures of GM’s BIG NEWS: Pages 40-42
The Business Journal MARCH 2010 15
BY LOUIS A. ZONA
Impressions ������������������
���������������������
The Angels in Our Lives ����������������������
Remembering people get her through the school year. “I
who helped, guided us. can remember everything about Miss
Martin and her class and I’ll never
T
here are so many wonderful forget her wonderful kindness to me,”
stories – few of them told and Tina recalls.
many all too quickly forgotten Not so long ago I took a phone
– about the special people who enter call from John Ellefson. This was no
our lives and touch us in a profound ordinary phone call and I still cannot
way. Sometimes believe that it ac-
their entry into My mother, rest her soul, very tually happened.
our lives is brief. much believed that angels enter I met John in
But their influence the late ’50s when �����������������������������������������
stays with us until our lives and guide us through he was a young ����������������������������������������������������
we die. crises and hard times. teacher with a
These are peo- summer job of ����������������������������������������������������
ple who believe in us when we don’t running the Rowan Avenue Play- �������������������������������������
believe in ourselves, when few others ground on the east side of New Castle.
give us a chance at succeeding. Such a I was a high school kid with friends
person might be an elementary teach- who lived near the playground and �����������������������������������������������������
er who takes a special interest in a they introduced me to this most won-
�����������������������������������������
talent you didn’t know you had, or derful and caring person.
an uncle who saw to it that you had John’s demeanor and personality, �������������
a new suit for that all-important high his love of kids and his knowledge of
school prom. baseball made meeting him an expe-
My sister Tina, born in the depths rience of a lifetime. Here I was, a kid
������������������
of the Great Depression, remembers from the poorest area of the city with
that she didn’t have a pair of shoes next to no self-confidence, but John
to wear to school. Tina never forgot took care of that in a hurry.
the kindness of a teacher named Miss Soon I was immersed in John’s
Martin at North Street School. Miss Rowan Baseball League. With his
����������������������������������������������������������������������������
Martin gave her a pair of boots to See ZONA, page 16
BY GAIL WHITE � � � �
Commentary
� � � � � �������������
� � � � � ��������
I was 10 years old on the infamous sitting empty were just normal life � �����������������
“Black Monday,” Sept. 19 1977, happenings. � ���������
when Youngstown Sheet & Tube’s When I graduated from high
Campbell Works closed, setting off the school, most of my friends went away
chain of events known as the death of to college – and most of them never
steel in the Mahoning Valley. I can’t came back. I went to Youngstown State
say that I remember very much about University, and graduated in the midst
that day at all. of the “brain drain” study conducted
My father worked at General Mo- by the university that documented the
tors in Lordstown so I wasn’t directly exodus of youth from the Valley.
affected. I do remember that many of I mention these things not as a
my friends had parents who lost their whining adult, resentful of my up- ��������������������������� �������������������������
jobs – but that kind of crisis doesn’t See WHITE, page 16
16 MARCH 2010 The Business Journal
YOUNGSTOWN - WARREN
I
n the last couple of weeks, we’ve all talk about at this breakfast event.
read story after story about business Youngstown Mayor Jay Williams, Recovery Act has made
expansions and job creation in the named one of eight Public Officials improvements to its
Mahoning Valley. of the Year by Governing Magazine, 7(A) program, including
With the announcements of V&M will provide an overview and update
S t a r ’s p l a n s t o of what’s happen- eliminating fees and
move ahead with A flood of stories about the ing in the city and providing a 90 percent
the $650 million
economic revival in the Valley what to expect in bank guarantee.
expansion of its 2010 and beyond.
Youngstown plant is sweeping regional, national And Presley Gil- Since SBA program details
and the location of and international media. lespie will give the
a Revere Data of- audience a glance
are often complicated for
fice in downtown Youngstown coming at what the Youngstown Neighbor- business owners to navigate,
just a day apart, the area was abuzz hood Development Corp. has planned First Place Bank has
with talk of a new, brighter chapter in for 2010. Also providing an update appointed John Yurchison
the Valley’s story. The announcements will be Chris McKee, a community
as our SBA banker.
meant almost 500 new direct jobs as- organizer with the Mahoning Valley John Yurchison
sociated with the two projects. Organizing Collaborative.
That’s not too shabby in these For reservations, visit Regional- SBA Lender With over 25 years’ banking
tough economic times. Chamber.com or call Jennifer at 330 Vice President experience and 7 years
So when GM announced the very 744 2131, ext. 12. specializing in SBA lending,
next week that it would add a third First Place Bank
shift and 1,200 jobs at the Lordstown Share In the Celebration John has the expertise to
Complex to build the Chevy Cruze, it At Our Annual Meeting help local small businesses
seemed like the Valley’s prayers were
With all of this exciting news of Call today take advantage of new
being answered. We were beginning
to see the end of the recession and
late, the Regional Chamber’s An- at 330-726-3623 national SBA initiatives
nual Meeting luncheon on Thursday, on 7(A) loans.
decades of tough times for the Valley.
March 25, promises to be a can’t-miss or 1-800-997-9856
Of course, we at the Regional
Chamber are excited about all of this
event. or e-mail John at First Place is dedicating
In addition to an update on the
good news, but the area’s residents
Chamber’s activities in 2009, the event jyurchison@fpfc.net $10 million to assist local
and leaders aren’t the only ones talk- thriving small businesses
will include a keynote address from
ing about it. A flood of stories about
YSU’s president, David C. Sweet, who through the SBA Recovery
the economic revival in the Valley is
is retiring from the university this
sweeping regional, national and in-
year, and our annual awards presenta- Act. We’re proud to
ternational media. At press time, the introduce John as the
tion. This year’s award recipients are:
chamber had tracked 35 regional, na-
tional and international stories on the
•William G. Lyden Spirit of the Val- small business community’s
ley Award: Core 6 Joe Kaluza Project.
V&M announcement and even more • Donald Cagigas Spirit of the
advocate in boosting the
stories related to GM’s announcement local economy.
Chamber Award: Florence Wang,
at the Lordstown Complex.
president, W&K International Trad-
The Valley garnered headlines in
ing Co. Inc., and a member of the Re-
CNN Money, Industry Week maga-
gional Chamber’s board of directors.
zine, Manufacturing and Technol-
• Chairman’s Political Achievement
ogy e-journal and Channels 45/49’s
Award: Jay Williams, mayor, city of
NEOtropolis. The world is beginning Youngstown.
to see what we’ve always known: The What do the Regioinal Chamber
Mahoning Valley has much going for and all of these award recipients have
®
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February 26,
2010 Interest Rates CERTIFICATES OF DEPOSIT PASSBOOK
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STATEMENT
TERM PERCENTAGE YIELD, SAVINGS
2-Week Trend APY*
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Youngstown
1 Year
3 Year
.20
1.10
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20 MARCH 2010 The Business Journal
February 26,
2010 Credit Union Rates
FINANCIAL CERTIFICATES OF DEPOSIT AUTO LOANS MORTGAGE LOANS
INSTITUTION Term APY Minimum Term Rate Type Down Payment Term Rate, 2-Wk Trend Fees
ASSOCIATED SCHOOL 1 Year 1.00 — $1,000 Up to 48 Mos. 5.25 Fixed 20% 15 Year 5.00 — 2+200
EMPLOYEES 2 Year 1.75 — $1,000 Up to 66 Mos. 5.50 Fixed 20% 20 Year 5.25 — 2+200
FIRST CHOICE COMMUNITY 1 Year 1.65 — $500 Up to 48 Mos. 5.65 Fixed 20% 15 Year 5.50 — 2+200
(formerly RMI CO. EMPLOYEES) 2 Year 2.00 — $500 Up to 60 Mos. 5.65
OHIO EDISON/ 1 Year 1.00 — $1,000 Up to 48 Mos. 5.99 Fixed 5% 15 Year 5.125 0+costs
PENN POWER 2 Year 1.76 — $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 5.625 0+costs
SEVEN SEVENTEEN 1 Year .80 $1,000 Up to 48 Mos. 5.99 Fixed 5% 15 Year 4.375 — 0+costs
2 Year 1.55 $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 5.125 0+costs
STRUTHERS FEDERAL 1 Year 1.00 — $1,000 Up to 48 Mos. 6.00 N.A. N.A. N.A. N.A.
2 Year 1.51 — $1,000 Up to 66 Mos. 6.00
Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.” Rates are subject to change without notice and should be confirmed before entering into transactions.
©2010 Youngstown Publishing Co. All rights reserved.
The Business Journal MARCH 2010 21
A
utomobile manufacturers want their suppliers ment Technical Assistance Center in Painesville. The Among the success stories Fenn cited is Nordic
to be healthy, but they warn that those centers offer “quite a bit of business intelligence,” Air Inc., an Ashtabula company that makes climate-
suppliers must look beyond the auto industry he says. The nine centers in Ohio also provide as- control devices for steel mills. In November 2003,
if they want to keep their health. sistance in preparing bids and certifying companies the company contacted the procurement center,
Market diversification is “crucial” for any busi- to do business with the government. which found a pre-solicitation notice a month later
ness, but especially those in the automotive supply The federal government, he notes, is “the larg- and helped the firm submit a bid in April 2004. Since
industry, says Ken Walker, senior business consul- est customer in the world,” making $400 billion in then, the company has done more than $300 million
tant with the Manufacturing Advocacy and Growth purchases in 2008, a figure that excludes spending in business with the government.
Network, or Magnet. At one point, the domestic auto
industry produced 16 million vehicles annually but
today “is nowhere near that,” he says.
“The paradigm has shifted. It’s just not going to be
that business for these manufacturers,” says Walker,
who spoke at a market diversification program
Magnet presented in Youngstown. The carmakers
say their suppliers need to enter other markets
“to help balance out their businesses” so they can
remain strong.
The announcement Feb. 23 that General Mo-
tors Co. will restore the third shift at its Lordstown
Complex and hire 1,200 more workers is “great and
wonderful,” but suppliers shouldn’t let that news
“mask the situation,” agrees Greg Krizman, senior
marketing director with Magnet.
During his segment of the program, Walker
outlined Magnet’s detailed approach to helping
companies identify their core strengths, develop new
products or modify those they offer, identify poten-
tial markets, and prepare to enter those markets.
Companies must recognize that increased ex-
pense will accompany diversification. “This is not
a ‘get out of bankruptcy free’ card. They’re going
to have to spend some money to get into new mar-
kets,” Walker says. Companies also must engage in
marketing, and have a “good value proposition” to
demonstrate why customers should purchase from
them rather than their competitors.
“You’re not moving into markets where there is
no competition. You’re moving into markets where
there’s already established competition,” he says.
Setting yourself apart from your competition “is the
only way that you’re going to succeed,” he says.
One growth sector that companies can look to ����������������������������������������
for diversification is the medical-device industry,
but there are important aspects to consider, says
Michael Southworth, principal and senior consultant ����������������
at Southworth & Associates, Beachwood. Medical
devices cover a range of products from simple tongue
��������������
depressors to artificial hearts, he notes, and the in- �
dustry is “dynamic, growing and generally stable” ������������������������
as well as resistant to economic downturns. The ��������
industry also enjoys high profit margins ��������������������
However, it is also highly regulated and “not
for everybody” because of liability issues, he adds.
Manufacturers of medical devices are directly regu-
lated by the U.S. Food and Drug Administration,
their suppliers indirectly.
Because of quality standards in place, companies
in automotive and aerospace fields “may be very
well-positioned” to meet requirements of the medi-
cal-device market, Southworth says.
Other potential downsides include lower product
���������������������������������������������������������������������������������������������������������������������������
volumes and higher overhead. ����������������������������������������������������������������������������������������������������������������������������
Selling to the U.S. government is another poten-
tial market for companies looking to diversify, says
22 MARCH 2010 The Business Journal
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The Business Journal MARCH 2010 23
BY STACIA ERDOS
A
s we near the end of the first free should remain that way.
quarter of 2010, the future looks Now on to topic No. 2, the Federal
a little brighter for businesses Communications Commission’s inqui-
that rely on advertising dollars to ry into the future of media and its role
������������������
sustain their livelihoods. in providing news and information. At
The Nielsen Co. reports ad spend- a special page on its Web site, Reboot.
ing fell 9% last year, down to $117 FCC.gov/FutureOfMedia, the agency
billion. It was actually on pace to is soliciting ideas and votes on what
fall 15% the first policies could im-
half of the year.
A strong fourth
The FCC’s chairman, Julius prove information
and news in the � �������������������������������������
quarter cushioned Genachowski, promises the digital era.
the fall. process will be ‘consistent with The day I �����������������
Who spent and the vital goals of free speech in checked in, one of
who didn’t was as
you’d expect in a a democracy.’
the top vote getters
was ending mega- � �����������������
��������������������
down economy.
Advertising by automakers and their
corporations own-
ership of media, the submitter of this
�����
dealers dropped 23% last year. Fur- idea contending that powerful media
niture store advertising dropped 7%. owners, such as Rupert Murdoch, � ���������������������������������
And advertising by wireless telephone have disproportionate control over the
services dropped 8%. (Really? That’s
hard to believe.) Department store
content and delivery of news.
Another big vote getter: Restrict, � ������������������������
advertising increased 3% and phar- fine and suspend media outlets that
maceuticals were up 2%.
Now the good news: Before these
promote hate speech, racism and
violence. The person making this sug-
� ��������������������������������
numbers came out, industry analysts
at Barclays Capital revised upward
gestion urges the FCC to seek penal-
ties for corporations and broadcasters
��������������������������
its advertising forecast for all major such as Bill O’Reilly, who was accused
media for 2010. In some cases the of fueling hatred and violence against � �������������������������������
revision isn’t necessarily a positive George Tiller, the abortion doctor who
number, just less worse. was shot and killed. ���������������������������
Barclays estimates advertising will Another called for the FCC to hold
increase 3.5% this year, after forecast-
ing it would remain flat. That’s much
public hearings on deliberate disinfor-
mation and propaganda. True, hate
� ����������������������������������
better than the nearly 10% drop for
2009. Analysts see businesses return-
speech and deliberate disinformation
harms the public discourse, but let’s
����������������������������������
ing to advertising at the local and na-
tional levels thanks in part to it being
not forget the First Amendment.
Steve Waldman, who’s spearhead-
���������������
an Olympics and election year. ing the Future of Media project,
Barclays now predicts TV adver- pledges to keep the First Amendment
tising will rise 10%, Internet 9% and top of mind. Any time the government
outdoor advertising 6%. Radio, which looks at the media, it must be “very,
Barclays initially predicted would drop very careful,” he says.
4%, is now expected to rise 2.2%. The FCC’s chairman, Julius Gena-
Print publications have been hit chowski, promises the process will be
hardest and while the new forecast “consistent with the vital goals of free � � � � ������������������������
is better, the outlook is still not good speech in a democracy.”
for magazines and daily newspapers, So let the inquiry begin. But be- �������������������������������������
with ad revenue expected to drop 3% ware: A lot of journalists, this one
and 6%, respectively. included, will be watching.
24 MARCH 2010 The Business Journal
BY MONNIE RYAN
Wire Service
If Saving Money Is Key,
It’s Hard to Beat Free
Download software compatible with the commonly used
but relatively expensive Microsoft
programs at no cost. Office, so you’ll be able to share the
documents you create.
A
lthough some economists see Admittedly, I’m not a Quicken user,
light at the end of the economic but many folks think they can’t live
tunnel, it’s clear most folks will without this personal, small-business
be in penny-pinching mode for some and financial accounting program.
time to come. There is, however, a free alternative
A big expense for small- and me- available at GnuCash.org. The program
dium-sized businesses, at least if they allows you to track bank accounts,
want to stick to the stocks, income
letter of the law, is and expenses and
software. Having A big expense for small- and works with Linux
to buy a copy of medium-sized businesses, at Source, Windows
Microsoft Word least if they want to stick to the XP and 7 and Mac
or an accounting operating systems.
program used dai-
letter of the law, is software. A new version,
ly by several com- GnuCash 2.3.8,
pany computers can get expensive. works with more systems, but it’s still
One answer to the problem is so- in the testing stage and best left for ex-
called “cloud computing,” in which perienced developers and testers until
We Carry GOJI the software programs are accessed, the stable version is released.
nfield
Ca
Development at a Standstill? Not in Canfield
Township led the county ford Lifestyle Community, just off
Boardman-Canfield Road. “Activity
in residential housing has picked up on both the residential
and commercial end,” he says. “The
starts in 2009. phones are starting to ring again.”
By Dan O’Brien Among the major projects under
way at Westford is the completion
W
hile commercial growth in of a 20,000-square-foot office build-
Canfield isn’t as robust as ing already 50% leased, Whitman
in recent years, business reports. “By the fall, we should have
owners and developers there say the it filled.”
community draws significant interest The sprawling, 300-acre mixed-use
as it continues a transformation that development is also home to Kenn-
began in earnest five years ago. sington Golf Club, where bookings
New single-family housing starts are up 20% from the same period a
numbered in the double-digits in 2009 year ago, Whitman reports. “When
as other communities struggled. And, we see bookings up on the golf course,
a handful of commercial development it tells us that people are starting to
projects started last year are near spend again,” he says. “There’s been
completion, with more slated to begin phenomenal interest.”
this season. This year will be the first that
All indicators point to year filled Kennsington will operate under a new
with hope for the township and city course manager, Billy Casper Golf,
on the heels of what was a surprisingly Whitman says. The company man-
solid year for businesses. ages 110 courses across the country
“Thank God, they’re all doing and has the systems in place to make
well,” Michal Naffah says of the busi- playing golf more appealing than ever
nesses in his Ironwood Commons. for the customer, he adds. Work is also
The project was developed five years slated to finish on the course’s new
ago as a mixed-use development on grillroom this year; it is expected to
the corner of Raccoon and Boardman- open for business in June.
Canfield roads. In the development As consumer confidence rebounds,
are a Hampton Inn & Suites, three it should also translate into more
restaurants, a fitness center and tan- retail and residential interest, Whit-
ning salon. man relates. Late last year, one of
The Hampton Inn is drawing a size- the development’s first retail tenants,
able number of corporate travelers as Smith Jewelers, went out of busi-
guests, many of them executives from ness. Despite this setback, Whitman
other countries in the Mahoning Val- believes the space could be leased in
ley on business, Naffah says. “We’ve a matter of months. “We’re in nego-
had a lot of business people from all tiations with a jeweler for the Smith
over the world stay here” in addition location,” he says.
to traditional travelers who venture Dave Morrison, Canfield Township zoning administrator, says his community led the county in the And, even in the darkest days of the
into town for special occasions. number of residential housing starts last year with 24 – 21 of them single-family houses. housing slump, Westford managed to
Ironwood’s three restaurants – muster a handful of housing starts last
Ruby Tuesday, Inner Circle Pizza and wood. Three years ago, the couple decided year, Whitman says. “There are a cou-
Bob Evans – continue to fare well and Nevertheless, Naffah says inves- to launch a home-based business that ple under construction and two more
have exceeded projections, Naffah tors’ interest in that site is very high, initially focused on repairing and that just started,” he reports. Demand
relates. “It tells me that the Canfield and reports he hopes to make an an- providing support service for personal for new houses might be slow across
community has really been looking nouncement soon on a new business computers, McDonnell relates. “As the country, but interest in Westford’s
for these types of restaurants,” he there. “There’s also another project the company grew, we expanded our Wakehurst Village – a gated villa com-
remarks. in the works that we’re hoping to an- managed services and now provide munity – is on the rise. “There are 17
The development hasn’t come nounce in April,” he says. a backup and disaster recovery plan villas constructed now,” he says, “and
without hitting some bumps in the Ironwood is just one example of that we’re marketing to small and 32 of the 68 lots are sold.”
road. The recession forced Naffah to the sweeping changes the Canfield medium-size businesses,” she adds. Other work planned for this year
place on hold his plans to develop a community has seen over the last “We’ve seen steady growth and expect includes a new road that extends west
retail center there and begin work on five years. Once regarded as a small, a 20% to 25% increase in business to South Raccoon Road, opening up
a residential phase. bucolic area short on amenities and this year.” another phase of Westford, Charles
“When the economy takes a turn, service establishments, the Canfield of Within two years, McDonnell re- Gate. “These are single-family homes
the retail and housing sectors will also today is quickly becoming a desirable ports, the company expects to secure with larger lots” that range from
turn again,” Naffah says. “We have a place for people to live and build their office space somewhere in Canfield to three-quarters of an acre to 1.5 acres,
lot of calls related to villas and condos, businesses. accommodate its growing customer he reports.
but that market’s at a standstill – it’s Mary McDonnell, director of busi- base. “All indications are that it is going
too risky.” ness development for Canfield Com- “There are a lot of positive things to be a good year,” Whitman notes.
And, last summer, the restaurant puters, says she and her husband, going on,” reports Chuck Whitman, “As banks start to loosen up, it’s sure
Harry & Jean’s closed, leaving empty George, relocated in 1999 from the president of CTW Development to help.”
a nicely furnished building at Iron- Washington, D.C., area. Corp., which spearheaded the West- See DEVELOPMENT, page 26
26 MARCH 2010 The Business Journal
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Ca
Michael Humphries, principal at Yurchyk & Davis CPAs Inc., Matt Sutton, owner of Yolo Grille and Wine Bar, 231 S. Canfield- Business at Bernard-Daniels Lumber & Home Center, 250
3701 Boardman-Canfield Road, reports the accounting firm’s Niles Road, says his decision to move his business to Canfield Railroad St., is on the move, says its marketing manager,
corporate clients say banks are still tight with lending, but from downtown Youngstown about a year ago has worked out Mike Herrmann. “It’s booming,” he notes. The company draws
other sectors, such as housing, seem to be picking up. for the best. “There’s a lot of opportunity here,” he says. a steady mix of contractors and do-it-yourselfers.
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The Business Journal
usiness MARCH 2010 29
nfieldB
Ca
MultiMedia Farms Inc., 17 Main St., has seen the market improve this year, says Clare Neff, who Jim Rosenberg, president of Neo3, a software sales and support firm at 196 N. Broad St., says
co-owns the company with her husband, Bruce. MultiMedia Farms has contracted events such 2009 “was a solid year” for his company and begins 2010 marking Neo3’s 10th year in business.
as the Daytona 500 and Disney Marathon. From left are Neff and Megan Christensen. Neo3 sells and provides support services for Sage accounting software. It employs five.
30 MARCH 2010 The Business Journal
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32 MARCH 2010 The Business Journal
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The Business Journal MARCH 2010 33
CommercialLending
Roundtable Reveals Bankers’ Dilemma
Congress wants banks to make Robert H. Kempe, senior vice president and team
leader for the Mahoning Valley Region of First Place
Are there different products that you’re steering busi-
ness customers toward? Are there new products you’ve
more business loans while regu- Bank: There’s no question greater scrutiny is placed
on credit and loan applications than probably there
introduced or modifications of existing products so
those who used to qualify can continue to qualify? Are
lators demand tighter standards. ever was. you involving the Mahoning Valley Economic Develop-
What’s missing is that banks aren’t in a very ag- ment Corp. and U.S. Small Business Administration to
The Business Journal: Small-business owners complain gressive growth mode. So you don’t have a lot of a greater degree?
that they can no longer get the credit they need. They bankers out there [pursuing new business].
say that lending criteria are too high; they’re upset [To] folks saying that lending criteria are too Kempe, First Place Bank : We’re putting a greater
because they can no longer borrow or that their lines high, the lending criteria is the same as it’s always emphasis on the Small Business Administration’s
of credit have been reduced, that you’ve made it too been. But when there’s a lot of competition, banks Seven-Day Guarantee Program.
tough to borrow. tend to back off on some things they normally The stimulus legislation [American Recovery and
wouldn’t because they want Revitalization Act] passed
Mark Graham, senior vice president and senior the business, because they’ve last year provided for up to
loan officer, Farmers National Bank: We’ve contin- got these aggressive growth Mark Graham a 90% guarantee to banks up
ued to follow the same basic lending practices and numbers [to meet]. to$2 million and eliminated
lending criteria. And we’ve always based our lending You don’t have that any- ‘We continue to the fees.
practices on character, capital, credit capacity and more. And you don’t have grow our loan Fees were a huge obstacle
collateral. that irrational lender out in those programs, because
there trying to grow by 20%,
portfolio – we the origination fee could be
In this environment regulators want to see more
supporting documentation, such as tax returns, making it tougher for the rest experienced up to 3½% with the maxi-
personal financial statements, rent rolls. of us to make loans.
[Another aspect over-
more than 10% mum [being] $53,000 to a
borrower in that program.
They’re paying a lot more attention to the global
situation of the borrower. But we’re ever mindful of looked is that] business own- loan growth in That was a big number;
the adverse effects of tightening credit in a recession- ers have to understand that 2009.’ it’s been eliminated. At First
ary period. And as Farmers has shown, we continue they’ve got to take the same Place, we’ve got a very strong
to grow our loan portfolio – we experienced more risk as the bank. They’ve got initiative to increase our
than 10% loan growth in 2009. And we hope that to put their capital at risk. SBA lending because it’s a
continues. And that’s foreign to a lot of business owners [be- win-win.
cause] they haven’t had to do it in the past. The bank gets a 90% guarantee. Granted you
Dennis E. Linville, senior vice president, The have to do your documentation correctly, and you
Middlefield Banking Co.: We’ve continued to support Peter J. Asimakopoulos, executive vice president have to follow [SBA] procedures, which can be very
our customers as we always have. Our bank is new for small-business banking, First National Bank of tedious.
to the Mahoning Valley. We opened up our office Pennsylvania: … There was no change in our under- But the borrower gets a loan on terms I would
in Cortland about a year and a half ago. And we’ve writing criteria We’re really doing business as usual. consider nonconventional: You can go up to 10 years
been well-received. We’ve picked up new custom- Our asset quality has remained strong throughout on working capital; 10 to 15 years on equipment; up
ers from some contacts I’ve had, from people who this downturn. to 25 years on real estate. That’s a win.
have heard good things about Middlefield Bank and So we’ve continued to approach everything as we The borrower gets a longer amortization, a bet-
came in to see us. always have. And that’s put us in a very good position ter cash flow. They can refinance some loans or
But I don’t know that we’ve tightened our credit today. We saw 6% growth in ’09 in our commercial consolidate loans and recapitalize their business.
standards. We have insisted on more documenta- loan portfolio. We brought in 115 new relationships Hopefully, business is coming back.
tion. We realized that our loan file needed to be of significant size. Maybe they’ve exhausted all their working capital,
better supported with financials and background and As Mr. Kempe mentioned, some banks did some just surviving. We can refinance, restructure their
historicals. We pay a lot of attention to cash flow. irrational things that were competition-driven. But balance sheet, give them more favorable terms than
And collateral is something you look at a bit more if you stayed the course, you’re in a good position conventionally. And we get the guarantee.
closely than we might have in the past. Our loan today to capitalize on the opportunities out there. That’s a win-win.
growth in the past year has been very good, too. So And we continue to lend money out to the com-
we’re looking forward to 2010. munity. Asimakopoulos, First National Bank: … On the
deposit side, a little over a year ago, we looked at
what we offered small businesses. We saw it was very
Who’s Who, Participating in the roundtable on commercial lending held Feb. 16 at the Holiday Inn-
Boardman were Peter Asimakopoulos, executive vice president for small-business banking
similar to what we offered our larger commercial
customers.
Said What: at First National Bank of Pennsylvania; Mark Graham, senior vice president and senior
loan officer at Farmers National Bank; Robert Kempe, senior vice president and team
So we revamped our business checking for a
smaller business. The number of criteria is a lot less
leader for the Mahoning Valley region of First Place Bank; and Dennis Linville, senior vice president, Middlefield and the activity [is nowhere the same].
Banking Co. We also attached treasury-management capa-
Dennis LaRue, copy editor of The Business Journal, led the questions and edited the verbatim transcript prepared bilities for the smaller businesses. Banks typically
by Tracey L. Berarducci, certified court reporter at David R. Burton & Assoc. Tony Mancino took the photographs. went after larger commercial customers for treasury
Also asking questions was publisher Andrea Wood. See ROUNDTABLE, page 34
34 MARCH 2010 The Business Journal
stay with them. they may find themselves at 100-plus percent loan among your customers that at least the worst is over –
We’re in closer contact with them now because to value. As you’ve seen with residential real estate, even if they don’t think the good times have returned?
we share their concerns about their financials, their they’re going to owe more money on the property
progress and other things they face. than it’s worth. Asimakopoulos: As a community we should see
So if one thing has come out [of this recession] So this is a huge issue for our country but not a lot of positives: V&M Star Steel, [O.A.O.] Severstal
it’s that you build deeper, closer relationships with so much locally. Because we didn’t see the [falling Steel in Warren, with General Motors at Lordstown,
your customers. Because by spending more time values] a lot of other areas experienced. with The Youngstown Business Incubator, with
with them, you really get to know them and help We still have issues here because values are driven Youngstown State [University]. We can make a long
them. by comparable sales data. And values are down. list of things that are positive.
Comparable sales are As to the extent that customers are feeling that,
Graham: Dialogue with your down. and bankers are feeling that, everybody feels that
customers is especially impor- Robert Kempe A lot of times ap- at least we’ve leveled off. We’re looking at greener
tant in this environment. Most praisers look at short pastures and bluer skies.
of our customers understand the ‘Roughly sales. So it’s still very We can start accentuating all the positive things
economy that we’re in. $1.4 trillion difficult to get a com- happening in this community. Borrowers and busi-
Not only are you talking more
with the borrower, you’re engag-
in commercial mercial real estate loan
in some areas, particu-
nesses are starting to realize that.
ing in more dialogue with their real estate larly the investment real Linville: There are strong industries and weak
CPA, to work together. loans come estate area. industries out there. We tend to gravitate towards
the strong players, whether the industry is weak or
If two years ago, most of your cus- due in the Graham: I would strong. We’ve identified some of those.
tomers were being paid within 30 next five agree. … From the per- Some trucking companies are looking to expand
days, how long is it taking them to spective of the regulator, right now. They’re buying tractors; they’re buy-
collect their receivables today? years.’ [he expects] to see more ing trailers. Things have turned slightly for them,
stress in the banks’ com- although they’re still cautious. But they’re doing
Graham: Good question. It varies. But our cus- mercial real estate portfolios. better.
tomers’ customers tell us they have to extend terms, We’ve [all] seen that. [Farmers National] is ever We see the same thing in the long-term care
extend contracts. Payment is slower. It’s all part of mindful of that. But we all want keep lending. industry. There’s expansion there. …
the environment. And that impacts the borrower. It’s All those factors will impact how we move with And in the hospitality industry. They faced the
taking them longer to collect what they’re owed. lending to owner-occupiers. same downturn as everybody else. They see this as a
good opportunity to improve their properties, even
What is the health of the commercial real estate market? What are your customers using the funds they borrow if occupancy was down. They can take rooms out
What has been your experience? for? To what extend do they need funds for day-to-day of service; they can do the upgrades.
operations? Equipment? Commercial real estate?
Asimakopoulos: This area never saw the booms Kempe: [Our customers are] starting to see im-
that other areas did. So our lows weren’t quite as Graham: Well, you can’t put everyone in the same provement. But, we have a long way to go. Recovery
low. category. is going to take a lot
There’s been, over the past couple of years, quite Some customers have re- longer this time.
a bit of vacant commercial space. But it hasn’t grown mained healthy and prosperous Pete Asimakopoulos Companies have
substantially. And as we start going in the other throughout. Their needs are the learned their lessons,
direction, we’re not likely to see the [rebound] same that they’ve always been: ‘This area and it’s been a good
that some other parts of the country are going to Operating lines of credit for ex- never saw thing.
experience. pansion purposes, equipment. They’ve gotten lean-
So I’m still optimistic that commercial real estate Others are looking to refinance the booms er. They found that they
will recover, but I don’t think it will be as impactful because as their cash flows have that other can still operate with
here. But the bank certainly still has cause for con- been impacted, they have the fewer employees and
cern. It’s looking at the portfolios, seeing what the same historical needs. areas did. less overhead.
cash flows of the projects are, seeing the strengths So our lows I anticipate that as
of the guarantors. It seems so tempting to think that recovery takes hold,
Again, there’s a need for constant communication if you are having trouble collecting weren’t quite they’ll return to their
with the borrowers and seeing their tenants’ ability your receivables, you just go to the as low.’ earlier revenue levels
to pay rent or reduced rent. bank and borrow enough to tide and that they’ll do it
yourself over, so you can continue to operate day-to-day. with less employees and less overhead.
Kempe: I agree with Pete that this area hasn’t Did that happen? Or are we over that? They’ll be stronger and better prepared [for the
seen what the rest of the country has seen, which next downturn].
is a good thing. Nationwide this is the next bubble. Asimakopoulos: That still exists in situations in
Without question, commercial real estate is the some areas and in some industries where working The economists we’ve talked to think that 2010 is
next bubble. capital and cash flow have been depleted. They’re going to continue to be a year of sustained recovery.
Roughly $1.4 trillion in commercial real estate looking towards their bank for getting a cash injec- For one thing, at least half of the stimulus funds from
loans come due in the next five years that are going tion. the American Recovery and Revitalization Act are still
to have a hard time finding [refinancing]. [The recession has] also been an opportunity unspent, still in the pipeline. It’s 2011 they’re not so
These loans are going to mature, and the lenders where companies that thrived in this environment optimistic about. What is your sense as to the sustain-
who holding them now, for the most part, are not are looking at opportunities to expand because ability of the recovery and your customers’ continued
going to want to want to keep them. So [lenders] real estate costs less. Equipment either costs less comeback?
are going to ask [borrowers] to refinance [what they or can be financed at lower rates. Borrowing rates
owe]. There aren’t a lot of places [borrowers] can are low. Linville: The key to recovery in our area is em-
go right now. Companies doing well see opportunities to take ployment. And tough to deal with. A lot of these
That, coupled with the fact that values have fallen the next step toward greater profitability. companies have gotten pretty lean. And it’s at the
15, 20% in some areas, and even more, in Florida, expense of their employees. And once they realize
Arizona and Las Vegas. Since we are now officially in recovery (even though it that they can operate with fewer employees, I ques-
These folks are going to try to refinance. And doesn’t feel like it), to what extent do you sense optimism See ROUNDTABLE, page 36
36 MARCH 2010 The Business Journal
We’re LENDING
And Keeping $$ Flowing ���������
... into Businesses
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The Business Journal MARCH 2010
116760.BizChecking.AD.12.09 2/12/10 12:45 PM Page 1 37
#12
issued $100 million worth of common shares. So
we’re above the Tier One capital requirement of 12%.
We’re closer to 13. Switch to Seven Seventeen Credit Union,
We do have money to lend. Obviously, we’re going where your business comes first. Our number
to be prudent on how we do that. one concern is our personal and business
But it certainly provides us a nice opportunity
again to support our customers and prospects. customers – who are our members and our
owners. We have no stockholders and we
Linville: The double-edged sword here is that cannot be sold. We are committed to serving
most of your capital is generated through earnings.
And because of all the bank failures, the FDIC has
our local community. And just like banks, our
seen fit to raise our premiums substantially and deposits are federally insured up to $250,000
impose a special assessment. per business.1
It’s millions of dollars that should be going to
our bottom line instead paid as insurance premi-
ums. This money would be part of our capital if
we were allowed to keep it. And we’re not. We’re Business Checking: Three Great Options 2
Project HIRE
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s the economy ground to a halt last year and
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business into areas unthinkable a decade ago.
Northern States Metals’ latest venture is manu-
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another 25 employees.
“We had a record year in 2009,” Voytilla says.
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lem we’re going to have in the future is parking” as Youngstown State University’s Yogendra Panta, Martin Abraham and Ganesh Kudav join Robert Voytilla at a press event Feb. 24
the company grows and adds more employees. where Voytilla presented YSU with a 16-square foot cross-section wind tunnel. Northren States Metals has tapped the brain power
The key was to develop a racking system that at YSU’s engineering department to help solve a manufacturing problem. Read the story below.
could be easily deployed in the field, saving time Northern States Metals’ is also involved with simi- in the time it would take to erect 10 traditional solar
– and in some cases, hundreds of thousands of dol- lar solar installations in New Jersey, Pennsylvania, frames, 150 could be completed with the FlexRack
lars – for customers. “We recognized costs had to Texas, Arizona and California, Voytilla says. product.
come out of this industry,” Voytilla says. The racks are assembled and fabricated in the “There’s simply no comparison in the market to-
Northern States’ answered with the Solar Youngstown plant, mostly using materials and day,” Voytilla says, adding the company is developing
FlexRack, a steel and aluminum skeleton system equipment sourced from companies in Ohio. Once a smaller, roof-mounted version of the product.
for solar panels produced and fabricated at the com- the product is assembled it’s then shipped to the site. Production and delivery speed is critical. “You’ve
pany’s plant on Intertech Drive at the Salt Springs The racking system is so efficient, Voytilla says that got to be extremely nimble,” he says.
L
ast year at this time, Clark and is gearing up to do the same for Reuss told employees, community company’s decision to add the third
Babb was worried. Business had the Cruze. When GM’s new product leaders and elected officials gathered shift, he said. “We’re going for the
plummeted by two-thirds and hits the streets, he expects business at the complex for the announcement. best product and we’re going to build
just a handful of workers remained to increase by one-third, making it Included in the 1,200 workers are it here in the United States and be
at Jamestown Moraine, a Youngstown possible for the also 70 salaried profitable at it.”
company that provides sequencing company to hire The complex has already built employees needed The Cruze launch this summer
and light assembly services for General another 10 to 12 300 Cruzes as it simultane- to man the third means additional investment in GM
Motors Co.’s Lordstown complex. people. shift. plants across Ohio so they can support
“We were concerned as to whether Though these ously winds up production of “Lordstown is the vehicle, Reuss said. GM’s Defiance
we would be able to remain in busi- aren’t huge job the Cobalt. Ground Zero for Foundry is to produce engine blocks
ness,” said Babb, the plant manager numbers, James- the company and for the vehicle’s 1.4-liter Ecotec turbo
at the company’s Meridian Road site. town Moraine is just one example the country,” Reuss declared, his engine, GM’s Parma Metal Center will
“You could’ve flipped a coin” to de- of the many automotive suppliers, remarks often interrupted by enthu- stamp 49 different components for the
termine his company’s fate, he noted, auxiliary manufacturers, and small siastic applause. Cruze, while the automaker’s Toledo
underscoring the precarious state of businesses that stand to gain as soon GM is banking on the Cruze to Powertrain Center will produce trans-
the domestic automobile industry and as the vehicle is launched. “It’s a good lead the way in transforming the au- missions for the product.
GM itself. stroke for all of the suppliers in the tomaker. The company is so confident Since July, GM has announced
All that changed Feb. 23, when area,” Babb said. of its success that it opted to add a more than $1.4 billion worth of new
GM North America President Mark Small and large businesses, local third shift to Lordstown even before investment in North America, repre-
Reuss drove a Chevrolet Cruze from and state governments, and the Ma- the first automobile is sold in North senting 5,515 new jobs, Reuss said.
Detroit to the Lordstown plant and honing Valley economy stand to reap America. GM has pumped more than $500
announced the company would add a long-term benefits from the Cruze “Think about hybrid performance million – $351 million in Lordstown
third shift and 1,200 jobs here when launch and the reinstatement of the without a hybrid price tag,” Reuss alone – to retool plants in Ohio and
said of the fuel-efficient Cruze, which Michigan to help launch the Cruze.
is expected to reach 40 miles per gal- Among the renovations at the plant
Since 1965 lon on the highway. “We’re confident are the development of an entirely new
they’re putting the third shift on be- body shop in what was the fabricating
cause we have confidence in this car. plant, which is being equipped with
We have a game-changer here in terms 800 robotic systems.
of fuel economy.” Add to GM’s $500 million invest-
GM said that engineers have logged ment the 18 other Tier 1 suppliers in
• Executive Search & Recruiting more than four million miles in qual- the Mahoning Valley and across Ohio,
ity and durability testing for the Cruze and the ripple effect becomes even
• Outplacement: Individual or Group worldwide. more pronounced.
• Temporary Staffing, Leasing & Payroll Services Following his announcement, Jamestown Moraine’s Babb said his
• Financial Services: Benefits & Pensions Reuss told reporter that in the over- business involves light assembly and
seas markets where the Cruze has sequencing for parts manufactured by
5083 Market Street • Youngstown, Ohio 44512 been launched, it is selling very Norplast, a plastics company that pro-
330/ 788-4001 • FAX 330/ 783-3966 • www.callos.com • ytown@callos.com well. Since January 2009, more than duces the front and rear fascias. “Our
100,000 units have been sold, and GM business is all just-in-time,” he said.
NPA - 350+Offices Worldwide
is betting that it will draw the same See LORDSTOWN, page 42
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The Business Journal MARCH 2010 41
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The Panamera S.
Starting at $89,800.
Armando's
(877) 533-1944
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armandos.porschedealer.com
42 MARCH 2010 The Business Journal
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The Business Journal MARCH 2010 43
Greg Greenwood, left, welcomes Dave Green, president of Local 1714 of the United Auto Workers, Diana Tremblay, GM’s vice president of manufacturing and labor, speaks with Gov. Ted Strickland
Reuss, and Jim Graham, president of UAW Local 1112, during a tour of Greenwood Chevrolet in and Reuss. “We think the market is going to love this vehicle,” she says. “It’s got the features of
Austintown. The dealership was the GM executive’s first stop before heading to Lordstown. a mid-size, the amenities of a mid-size, but it’s got the efficiencies of a small car.”
“The Cruze will become synonymous with Ohio. And that’s fitting Vows Ben Strickland, UAW 1112 shop chairman, during his “It’s only fitting that this community is ground zero for the
because it reflects the innovation and resilience of the people remarks, “This is the cornerstone of General Motors, and we greatest economic comeback in the history of the United
of Ohio,” Gov. Strickland tells the crowd. are going to continue to drive it that way.” States of America,” proclaims U.S. Rep. Tim Ryan, D-17 Ohio.
44 MARCH 2010 The Business Journal
says. “Many believe that this area could yield 489 and oil. Demand is on the increase for the company’s threading and coupling processing. The pipe is then
trillion cubic feet of gas supplies.” products, largely because of Marcellus drilling. The sent to drill rigs in the Marcellus shale.
Engleder, who has studied the Marcellus Shale project is expected to create 350 full-time jobs and The Brookfield plant “eliminates any logistical
25 years, says those numbers are based on just 10% another 400 to 500 temporary construction jobs. problems” that could arise as a result of its Marcellus
of the natural gas that is packed within – an area And, another tube maker, Russian-based TMK customers, Galitzine says.
that conservatively covers 15 million acres. Others Ipsco, announced Feb. 23 that its subsidiary, Ultra He says the Marcellus will quickly be inundated
have pegged the area of useable gas at close to 35 Premium Connections, has leased the former Sharon with business interests across the country – Pitts-
million acres. Tube operation in Brookfield to start a threading mill burgh is already attracting its share of cars bearing
“Something of this magnitude hasn’t happened there that could eventually employ up to 120. Texas and Oklahoma license plates – and also a
in America for a long time,” Engleder notes. The “These shales are a game-changing phenomenon” strong international presence.
reserve is so significant that he compares it to the for natural gas exploration worldwide, says Pitor “In the last three months, you’ve seen about $50
oil rush that kicked off in 1859 with the Drake Well Galitzine, TMK Ipsco’s chairman. The company billion in takeover and investment deals related to
near Titusville, Pa., in Venango County. That single manufacturers seamless pipe in Ambridge, Pa., north shale exploration [around the world],” Galitzine
moment, also made possible by the perfection of new of Pittsburgh, and will then send it to Brookfield for says. “This is the energy of the future.”
drilling techniques, is largely considered the birth of
the world’s modern petroleum industry.
The Marcellus play could have the same effect on
the world’s natural gas industry, providing an alter-
native source to oil and thereby eliminating global
dependence on energy sources in the Middle East.
“Our dependence on foreign oil also jeopardizes our
security,” he says.
The first gas wells in the Marcellus were drilled
as early as the 1880s, Engleder notes. In 1940,
explorers trying to drill vertically below the shale
in Allegany County, N.Y., fractured the rock and
unleashed a torrent of natural gas with no means to
control the geyser. “We now have the technology to
control and transport the gas,” he relates.
The Marcellus shale was formed 400 million years
ago, when Ohio and Pennsylvania were covered with
heavy organic sediment that decayed over millions of
years. As the sediment degraded, methane and other
gases compressed and forced fractures in the rock.
As the sediment hardened and became packed under
layers and layers of other formations in the earth’s
crust, the gas became trapped in the fissures.
Horizontal drilling through the use of hydraulic
fracturing has proved revolutionary for exploration
because it unlocks these unconventional reservoirs,
Engleder says. Through this method, operators drill
vertically until they hit the shale. Then, the drill path
turns horizontally and bores 5,000 feet through the
fractures, creating a path for the released gas.
Strict vertical drilling is useless in the shale be-
cause the formation is so thin, Engleder says.
The best drilling sites are those where the shale is
thickest and deepest, which is generally in the center
to western portion of Pennsylvania, Engleder says.
He said it’s not likely that there would be any sub-
stantive drilling in the Mahoning Valley or nearby
Pennsylvania counties such as Lawrence and Mercer
any time soon.
“Mercer and Lawrence don’t have good shale for
drilling,” Engleder says. “It’s too shallow and thin.”
In Centre County, Pa., for example, the shale could
be buried 7,800 feet compared to just 4,000 to 3,500
in eastern Ohio and far western Pennsylvania.
As drilling technology improves, though, extract-
ing gas from this portion of the shale is very possible,
Engleder says. “In my opinion, it will happen, and
that includes areas around Youngstown. It’s just a
matter of when.”
But it’s clear the Mahoning Valley is already reap-
ing major rewards for the drilling activity because
of its proximity to the sites.
On Feb. 15, V&M Star announced it would
spend $650 million on its tube-making operations
in Youngstown and construct a new rolling mill. The
company melts scrap steel to produce oil-country
tubular pipe used for the exploration of natural gas
46 MARCH 2010 The Business Journal
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BuildingBetterBusiness
5 Tips for Safe Banking Online
Simple steps will keep financial dors. Make sure your financial service providers al- • Reconcile accounts daily. Monitor and rec-
low for multi-factor authentication. This means that oncile accounts daily against expected credits and
information, transactions secure. you need more than just a user name and password withdrawals. If you see any kind of unexpected activ-
to access your account. ity in your account, notify your financial institution
O
nline banking has made it easier and more • Update virus protection and security software. immediately.
convenient to manage business finances, but Ensure that all anti-spyware, anti-malware, and Data Security Made Simpler was created by The
it also provides an opportunity for hackers security software and mechanisms are robust and BBB in collaboration with two nationally recognized
to gain access to business accounts with the goal of up-to-date for all computer workstations and lap- data security experts, Dana Rosenfeld and David
making unauthorized money transfers. tops used for online banking and payments. Imple- Zetoony.
According to Visa Inc., 85% of data breaches oc- ment a process to periodically confirm they remain Small-business owners can get additional advice
cur at the small-business level. Many business own- up-to-date. Security patches are often available via and tips on improving data security at BBB.org/data-
ers are ill-prepared to defend customer or employee automatic updates. security.
information in the face of an attack; 33% of small
businesses lack even simple anti-virus protection,
reports Symantec Corp.
Small-business owners might feel that they are
flying under the radar of data thieves and hackers,
Lots of Scams, Rarely Arrests
but they are actually in the crosshairs.
That’s why the Better Business Bureau partnered
with security experts to show small-business owners
that implementing a strong data security strategy
G
time:
rab your wallet!
Here are just a
few of the scams
we hear about all the
Encourage your employees to visit BBB.org to
check out EVERY offer EVERY time. We can’t warn
people enough. Every week we hear from people
who appear to be fairly intelligent but tried to
outsmart the scammer or just couldn’t understand
doesn’t have to take a lot of time or resources.”
The BBB and Symantec, Visa, Kroll’s Fraud So- • Free grants avail- how the latest pitch couldn’t be legitimate. The best
lutions and the Electronic Payments Association able from the federal advice is to throw that junk mail away or delete that
created “Data Security Made Simpler,” an online stimulus. new fabulous offer in your inbox.
resource to help small businesses implement key • Debt relief? Just These kinds of thieves are becoming more clever
data security policies and practices. circle here. every day. They have underground networks to trade
Data Security Made Simpler tackles the key topics • Let us settle your ideas and sell “sucker” lists to each other.
of small-business data security including the follow- debts to the IRS or com- Originally, scam letters came from Nigeria but
ing advice for small-business owners to make secure panies for 50% of what now they come with postmarks all over the world.
online banking transactions: you owe. They are better written and more believable. These
By Pat Rose • Suspicious activity crooks even have business plans.
BBB President on your credit card? They know how much they can average by steal-
Small-business owners might feel that they Click here to authorize/ ing an individual’s credit card numbers. They also
are flying under the radar of data thieves verify your account. know how much more valuable a company’s ID
and hackers, but they are actually in the • You have won $100,000. Here is a check (coun- numbers and account information can be. With
terfeit of course). Send $4,987 to cover all costs. the new generation of smart phones now used
crosshairs. • Deposit it in your account and send us a to transfer financial information, new schemes
check for $1,999 so we can direct deposit the are being developed to hack into your phone
• Initiate a dual-control payment process with balance of your winnings. information.
your bank and employees. Ensure that all payments • Guaranteed 12% return on your invest- Here is a final tip to lessen the harm an ID
are initiated from your bank accounts only after the ment available only to members of our group thief can cause you and your company. Enter
authorization of two employees. (church, school, factory, etc.). So keep it the phone number and credit card number of
One employee will authorize the creation of among ourselves and send your $300 to each of your credit cards into your contact
the payment file and a second employee will be the name on the top. lists on your mobile phone.
responsible for authorizing the release of the file. • Verified funds available, guaranteed As soon as you discover an ID theft
This process should be in place regardless of the financing. or stolen purse or wallet, you can imme-
type of payment being initiated – checks, wire • My name is …. And my deceased hus- diately contact every credit card you own
transfers, fund transfers, payroll files, ACH pay- band was the oil minister in (Nigeria, Iraq, Sierra and alert the fraud department. It can immediately
ments, etc. Leone). stop any further activity on that card. This is also
• Have dedicated workstations. Restrict the use These and other wonderful opportunities are extremely beneficial if you are traveling abroad or
of certain workstations and laptops solely to online available to a select few billion people seeking money for an extended time with no immediate access to
banking and payments, if possible. For example, in tough times. those numbers.
a workstation or laptop used for online banking There are rarely arrests; if you give out money Remember to “Grab your wallet and/or check-
should not be also used for Web browsing or social or personal information, you will lose big. Unfortu- book” if you see or hear any of the above phrases
networking. nately, no one will get caught, no one will go to jail and when in doubt check it out EVERY TIME with
• Use robust authentication methods and ven- and your money, ID and credibility are gone. the BBB.
48 MARCH 2010 The Business Journal
Getting Ahead
Why Your Job Hunt Fails
Common mistakes yourself” – select your top five sell-
ing points based on your analysis of
can be avoided. the job duties and link them together
in a few sentences to create a “verbal
E
mployers are extraordinarily business card.”
picky about the people they • Flustered or stumped by tough
hire, says Robin Ryan, career interview questions. Too many can-
counselor and author of several books didates don’t think through answers
including 60 Seconds & You’re Hired! to tough but typical questions such
Many common mistakes can be as, “Why should we hire you?” Or,
avoided, he maintains. To help job- “Tell us about the worst boss you
seekers be successful, he offers the ever had.” This style of interviewing
following reasons for failure: is common; the interviewer probes to
• Failure to quickly sell your ac- determine how you have performed
complishments. Resumes get glanced in the past. Specific examples of past
at and rejected in 15 seconds or less. performance are required. Plan your
Generic job descriptions and unfo- answers to these kinds of questions
cused resumes simply don’t work. The before the interview, trying to put a
Internet’s ease of use has added to this positive spin on the experience. Never
problem, increasing by thousands the say anything degrading or negative
number of resumes received and mak- about your former boss or company.
ing it very hard to get noticed. Making good eye contact more effec-
• Your resume needs to scream tively displays your confidence during
that actions = results. Be specific. the interview.
Show where you saved money, made • Not asking intelligent questions.
money, saved time or increased pro- Hiring managers complain that all the
ductivity. Use action verbs such as candidates care about is how much
streamlined, created and implemented they’ll get paid, what the medical ben-
to show you’re a take-charge, get-the- efits are and how many vacation days
job-done kind of person. Limit your they’ll get. Instead, stay away from
resume to no more than two pages. these topics and impress the employer
If you apply online, also mail a hard- with good questions about job duties
copy resume. and management styles. Good ques-
• Not writing a cover letter. Hu- tions to ask might include, “Could
man resources managers say today’s you describe to me your management
job hunters think they can skip this style?” “What major concerns need
step, especially when they apply elec- to be immediately addressed by the
tronically. A well-written cover letter person who has this job?”
has great power with employers and
always should precede any resume More Workers Calling Off
you send. Open your letter with a Nearly one-third of employees
powerful first paragraph that sums up played hookey from work last year,
your related experience, key strengths, finds CareerBuilder’s survey on absen-
skills and accomplishments. teeism. Most employers don’t question
• Not knowing how to control absences, but 29% say they’ve checked
the interview. Dressing inappropri- up on an employee’s excuse and 15%
ately, discussing your life story, not have fired someone for missing work
appearing confident, not being well- without a legitimate reason.
informed about the company and As for workers, 12% called in sick
nervousness get you off to a bad start. because of something work-related,
Employers often make snap decisions; such as not wanting to attend a meet-
many admit they mentally dismiss a ing, needing more time to work on a
candidate during the first five minutes project or to avoid the wrath of a boss,
after the initial greeting. colleague or client. Still others missed
• Immediately address the top work simply because they didn’t feel
strengths you have to offer. Display like going that day (32%), had a doc-
enthusiasm for the job, show you have tor’s appointment (31%), needed to
the potential to learn, grow and pro- relax (28%), catch up on sleep (16%),
duce on the job. When the interviewer run personal errands (13%) or catch
asks the inevitable – “Tell me about up on housework (10%).
50 MARCH 2010 The Business Journal
YSU President-Elect
Meets the Press
By Dennis LaRue
Of where she finds YSU today,
T
he president-elect of Youngstown “I believe we’re poised, positioned,
State University, Cynthia to prevail,” she said. With Gov. Ted
E. Anderson, apologized to Strickland and education Chancellor
reporters that she “missed the big Eric Fingerhut’s role for YSU as an
party” when trustees chose her as the urban research institution, Anderson
seventh president of the institution. said, “I believe in the charge of the
She was in Nevada delivering two governor and the chancellor. I believe
academic papers and unable to attend we can catapult YSU into national
the trustees’ special meeting Feb. 17. prominence. …
To reintroduce herself and signal “YSU students are why we are
her accessibility to reporters, Ander- here,” she iterated. Her focus will
son held a press conference Feb. 24 continue on attracting students,
where she reiterated her optimism seeing that they stay the course and
about the future of YSU and the Ma- graduate. Cynthia Anderson, YSU’s vice president of student affairs, will become its seventh president.
honing Valley. “We have the best faculty, staff and nity college on enrollment at YSU. the Internet, and a reduction in the
Word of hiring 1,200 for a third students,” she declared and would put She expects the university will sign an number of remedial classes offered.
shift at the Lordstown plant of Gen- them up against those of any college articulation agreement so its graduates “A build-it-and-they-will-come
eral Motors Co., V&M Star Steel Co. or university in the country. That receive full credit for their coursework doesn’t cut it any more,” she said.
building a $650 million rolling mill said, Anderson realizes she will have if they enroll at YSU and work toward “Our university will be an incubator
expansion in the Brier Hill district to oversee change because of reduced a four-year degree. of new ideas.”
of Youngstown, Revere Data LLC funding from Columbus, advances in No longer can YSU be all things Anderson related that she has re-
opening in the downtown and other technology and the birth of Eastern to all people, she elaborated. It will ceived 832 e-mails of congratulations
welcome economic news show the Gateway Community College. have to establish new priorities that from alumni, many former students of
Mahoning Valley is well on its way to Anderson declined to venture an recognize a strapped state budget, hers. “I intend to answer all of them,”
recovery, she said. opinion on the effect of the commu- distance learning that incorporates she said.
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The Business Journal MARCH 2010 51
Maintenance
surgery program under the direction of
ing the Holocaust.
Ravi Alapati, M.D.
Dave and Jeff Mirkin, franchisees of Sharon Regional’s Breast Care
Comfort Keepers in Youngstown, have Center has earned the Breast Imaging 157 S. Four Mile Run Rd. Youngstown, OH 44515
been awarded the Quest for Excellence Center of Excellence Award from the
award from CK Franchising Inc. American College of Radiology. (330) 793-6411 Since 1974
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Scott Schulick, president of Youngstown State University’s board of trustees, welcomes
Leonard D. Schiavone to the board. Schiavone is a partner and treasurer of the Friedman
& Rummell law firm and co–owner and president of Metro Land Title Agency Inc. He is
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52 MARCH 2010 The Business Journal
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Business Bankruptcies
CHAPTER 7 CHAPTER 11
� ������������������������������������� 10-40467 FDM Corp., 4 Washington St., 10-40143 M.E. Supply Co., 1340 state
�� ������������������������� Leetonia 44431. Involuntar y. Petitioning Route 14, Columbiana 44408. Total As-
Creditors: Staff Right Professional Services sets: $1,786,140.46. Total Liabilities:
�� ���������������� LLC, Boardman; Nook Industries, Cuyahoga $3,509,141.51. Date Filed: Jan. 14, 2009.
Heights; J&C Industries Inc., Cleveland. No
Summary Schedules filed.
�� �������������
New Ohio Incorporations
Brother’s Auto Group Inc., Youngstown. Youngstown 44513. Agent: Alvin A. Miller Jr.,
Incorporator: Michael W. Rosenberg. Filed 30 White Oak Court, Canfield 44406.
���������������
�������� by: Letson, Griffith, Woodall, Lavelle & Rosen-
�������� X-Press Underground Inc., Canfield. Incor-
berg Co. LPA, 155 S. Park Ave., Suite 250, porator: Daniel G. Perr y. Filed by: Bodine
Warren 44482. Agent: Adnan M. Ali, 4439 Perry LLC, 3711 Starr Centre Drive, Suite 2,
Wyndham Way, Copley 44321. Canfield 44406. Agent: Daniel G. Perry, 3711
Starr Centre Drive, Canfield 44406.
������������ Hyland Industrial Products Inc., Poland.
Incorporator: Larry D. Wilkes. Filed by: Davis Corner Stone Management Co. Inc., Aus-
����������� & Young, 972 Youngstown-Kingsville Road, tintown. Incorporator: James P. Manchi. Filed
Vienna 44473. Agent: Larry E. Wilkes, 648 by: Manchester, Bennett, Powers & Ullman,
������������������������ Cathyann Drive, Boardman 44512. 201 E. Commerce St., Atrium Level Two,
���������������������� Youngstown 44503. Agent: James P. Manchi,
Temperature Technologies Inc., Diamond.
������������������� Incorporator: Ronald D. Griswold. Filed by: 1050 Compass West, Youngstown 44515.
����������������� Lawrence H. Richards Co. LPA, 400 City Jay’s Hot Dog Franchising Co., Youngstown.
�� Centre One, Youngstown 44503. Agent: Incorporator: Frank Petrakos. Filed by: Law-
Ronald D. Griswold, 14401 N. Palmyra Road, rence H. Richards Co. LPA, 400 City Centre
��������
����������� Diamond 44412. One, Youngstown 44503. Agent: Frank Petra-
��������� kos, 1515 Alissa Place, Boardman 44512.
R&R Security Services Inc., Youngstown.
Incorporator: Jesse Rutland. Filed by: Man- Advanced Electrical Service Inc.,
chester, Bennett, Powers & Ullman, 201 E. Youngstown. Incorporator: Michael Bolotenny.
Commerce St., Atrium Level Two, Youngstown Filed by: Michael Bolotenny, 635 N. Schenley
44503. Agent: Jesse Rutland, 437 Sherwood Ave., Youngstown 44509. Agent: Same.
Ave., Youngstown 44511.
Canfield Pools Inc., Canfield. Incorporator:
Hampton Woods Assisted Living Inc., Aus- Bradley Timko. Filed by: Lori L. Timko, 8217
tintown. Incorporator: 350 Corporate Circle Columbiana-Canfield Road, Canfield 44406.
Inc. Filed by: Rolf & Goffman Co. LPA, 30100 Agent: Bradley Timko, 8217 Columbiana-
Chagrin Blvd., Suite 350, Pepper Pike 44124. Canfield Road, Canfield 44406.
Agent: 350 Corporate Circle Inc., 30100 Cha-
grin Blvd., Suite 350, Pepper Pike 44124. I.I.I. Claims Inc., Youngstown. Incorporator:
Carl Massullo. Filed by: Helbley, 725 Board-
Roxbury Realty Inc., Canfield. Incorporator: man-Canfield Road #K2, Youngstown 44512.
Alvin A. Miller Jr. Filed by: Michael P. Ma- Agent: Carl Massullo, 735 Boardman-Canfield
rando, Pfau, Pfau & Marando, P.O. Box 9070, Road, #K2, Youngstown 44512.
Think globally.
BY JEFFREY GITOMER
Sales Savvy
The Best from the Best:
Listen locally.
WYSU 88.5 FM
Sales Tips from Readers
� ����������������������
What do salespeople your customers will be.
• SMILE and mean it.
� �����������������������
do that’s best? What
� �������������������������
• When you work hard consis-
do you do? tently, the numbers will take care of
themselves.
B � �����������������������������
ack in October, I created a • Be prepared. Know your client
giveaway on my Facebook fan and their competition.
page. I offered a prize of several
autographed books for the person who
• Never get complacent. Challenge
yourself to be better. I asked my top
� �������������������
submitted the best sales tip. salesperson after a really successful
I received more than 260 responses. week if she was happy with the results.
Here are a few of the tips – I hope they She said “no.” That is why she is my
inspire you to think and take some top salesperson.
new (better) actions: • My best tip is to approach sales the
• If YOU don’t care, neither will way you desire to be approached. Radio you need to know.
your client. • Loose lips sink ships. I’ve seen
• I find that being curious and
genuinely interested in people has
more salespeople talk themselves
OUT of a sale than into one. www.WYSU.org
helped me grow my business and • I say to each client, “I am here
develop stronger relationships. It has to give you as much information as
also helped me to expand my profes- you need in order for you to make a
sional networks. completely informed decision.”
• Sales is not about selling. It is • Confidence speaks louder than
about relationships. words.
• Make the call! • Sales is a simple concept: help
• Always tell the TRUTH. people like you would want to be
• Alter the way you interact with helped.
each and every person, but never • Do your homework to earn the
change who you are! right to have a conversation.
• My second favorite four-letter • It’s difficult to take back a first
word is SOLD. My first is PAID. impression.
• Make doing business with you • Create a following by never fol-
easy. No nonsense. No rules. lowing.
• Just do what you say you are • Print out your client list/call list,
going to do. then turn your computer off and pick
• Don’t sell anything you wouldn’t up the phone. No e-mail you send is
buy yourself. going to be as good as the call I am
• Do it now, not tomorrow, not lat- going to make.
er, not after your coffee, not after you Pretty good? These are regular hit-
check e-mail. Do it now. Be known for the-phone-and-the-pavement sales-
your super-fast response. people who are out in their market or
• My best tip is “protect the base.” their community, making it happen. I
After I’ve met a prospective or current applaud them.
client, I’ve been writing a handwritten The winner? Bill Atkins. He owns
note expressing my gratitude indicat- Red Bank Limo in New Jersey. His
ing that I realize they have a choice in tip: Each day, pick two customers
buying supplies, but I thank them for at random. Tell them you just called
choosing my company. to see how they are doing. No sales
• My motto – NO PROBLEM! – no pitches allowed. Focus on the long-
matter what! People do not want term relationship you are building,
to know why something cannot be not the sale.
done, they just want it fixed, repaired,
made like new without any excuses Jeffrey Gitomer, author of The Sales Bible,
– period. The better, faster, and with conducts seminars, sales meetings and
understanding of their point of view, training programs. Reach him at 704 333
the stronger your relationships with 1112 or at salesman@gitomer.com.
54 MARCH 2010 The Business Journal
February 26,
2010 Auto Loan Rates
������� CONSUMERS NATIONAL BANK – Salem FIRST PLACE BANK – Boardman
�����
Up to 60 Mos. 5.75 - 16.50 Up to 60 Mos. 8.00
10% Down
Rate varies based on applicant’s credit rating
Every effort is made to ensure the accuracy of The Business Journal compilations. The rates are subject to change without notice. All rate
����� information should be confirmed with the individual financial institution before entering into transactions. © 2010 Youngstown Publishing Co.
� �� �����������
�
�
�� �����������������������������
�� ������������������� Valley Vehicle Sales Sag in January
� �� �������������������������
� � �������������������� Dealers sold 3,776 new and the Chevrolet Malibu with 125 sold. Second was the
Chevrolet Impala with 49, followed by the Chevy
���������������������������������������� used vehicles, down 16.2%. Equinox with 43. Rounding out the five top sell-
ers among Mahoning Valley dealers were the Ford
Auto dealers in Mahoning, Trumbull and Colum- Focus with 40 sold and the Ford F-150 truck, with
biana counties report sales of new vehicles fell by 37 units sold.
12% in January compared to the previous year.
���������
The Automobile Dealers Association of Eastern January Home Sales Flat
� �� ������������������������ Ohio’s monthly sales report shows dealers in the YOUNGSTOWN, Feb. 23 – Sales of single-family homes
� �� ��������������������������������������� Mahoning Valley sold a total of 1,281 new cars and and condominiums in January were flat in Mahoning
trucks during the month, compared to 1,458 in County compared to the month before, and were down
� �� ������������������������� January 2009. in both Trumbull and Columbiana counties compared
� � ������������������������ Sweeney Chevrolet and The Honda Store of to December.
Boardman both recorded top sales for new ve- Sales of single-family homes and condos in January
� �� ��������������������������� hicles with 68 units sold. Greenwood Chevrolet, totaled 121 units, matching the 121 sold in December,
��������������������������������������� Austintown, reported 67 new vehicles were sold; according to the Youngstown-Columbiana Association
Stadium GM Superstore, Salem, sold 62 new ve- of Realtors. In Trumbull County, 93 single-family homes
hicles; and Bob & Chuck Eddy Chrysler Dodge Jeep, and condos were sold, compared with 139 in Decem-
Austintown, sold 55. ber. In Columbiana County, 31 single-family homes and
Total sales of new and used vehicles were also condos were sold, down from 50 in December.
down, the trade group reported. Dealers said they Total sales for January were nearly $8.9 million in
sold a combined 3,776 units of new and used cars Mahoning County, just short of $6 million in Trumbull
and trucks, compared to 4,511 during January 2009, County and close to $2.7 million in Columbiana County.
a drop of 16.2%. That compares to nearly $10.1 million in Trumbull in
Greenwood Chevrolet turned in the most new December, close to $9.8 million in Mahoning, and short
and used sales with 150. Stadium GM Superstore of $4.3 million in Columbiana.
in Salem was second-highest with 129 units. Fair- During the fourth quarter of 2009, 402 homes were
way Ford in Canfield was third with 118. Sweeney sold in Mahoning County, down from 450 the preced-
������������������������������������� Chevrolet turned in the fourth-highest sales with ing quarter. In Trumbull County, sales rose from 305
113 units. And Preston Toyota, Boardman, recorded in the third quarter to 322 in the fourth quarter. In
��������������������������� 97 new and used sales. Columbiana County, sales declined from 168 in the
The top-selling new model for the month was third quarter to 134 in the fourth quarter.
The Business Journal MARCH 2010 55
February 26,
2010 Mortgage Rates �������������
��������
�����������������
�������������������������
DOLLAR BANK MORTGAGE CENTER ARM 5% Down 5 Yr. 3.875 — 0+costs ������������
Cleveland Fixed 5% Down 30 Yr. 4.94 — 0+costs
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56 MARCH 2010 The Business Journal
������
1ST NATIONAL COMMUNITY FHA 5% Down 30 Yr. 5.00 — 0+costs
East Liverpool Fixed 5% Down 30 Yr. 5.25 — 0+costs
FIRST PLACE BANK Fixed 5% Down 15 Yr. 4.375 0+costs
Boardman Fixed 5% Down 30 Yr. 5.125 0+costs
FLAGSTAR BANK Fixed 0% Down 15 Yr. 4.50 — 0+costs
Beechwood Fixed 0% Down 30 Yr. 5.125 0+costs
�
HOME FEDERAL Fixed 20% Down 15 Yr. 5.75 0+costs
Niles
4.50
�42� � �������� HOME SAVINGS
Youngstown
Fixed
Fixed
5% Down
5% Down
15 Yr.
30 Yr. 4.99
0+costs
0+costs
�77� � ������� HOWARD HANNA FINANCIAL Fixed 5% Down 15 Yr. 4.375 — 0+costs
Pittsburgh Fixed 5% Down 30 Yr. 5.25 0+costs
�96� � ������� HUNTINGTON BANK Fixed 3% Down 15 Yr. 4.50 0+costs
Youngstown Fixed 5% Down 30 Yr. 5.125 0+costs
World
Premiere
Time For Three
Brubeck Travels in Time For Three
Tchaikovsky Symphony No. 4, F minor
MASTERWORKS
Concert underwritten in part by PNC Foundation
The Business Journal MARCH 2010 57
3 Minutes...
330-743-0920
Hours:
Monday-Friday 10:30 a.m.- 2:30 p.m. Jane Oates Charlie Wilson
U.S. Assistant Secretary of Labor for U.S. Representative, D-6th Ohio
Located in the YMCA Building Employment and Training
T U
17 N. Champion St. • Downtown Youngstown he U.S. assistant secretar y of .S. Rep. Charlie Wilson, D-
labor for employment and training, 6th Ohio, hopes to introduce
NEW MENU EVERY DAY Jane Oates, says she is pleased
at how effectively stimulus funds have
legislation that would allow
banks to provide companies with
been spent to help the unemployed in the capital they need while satisfying
Trumbull, Mahoning and Columbiana regulators the banks will maintain
counties train for new jobs. Oates was their higher credit standards. He met
in the Warren office of U.S. Rep. Tim with bankers and small-business
Ryan, D-17th Ohio, Feb. 19. owners Feb. 16 to determine how
these competing goals might be met.
Role of Community College:
��������� ing the direct connection between local and that’s counterproductive to what
businesses and Eastern Gateway Com- we’re trying to do.
munity College – I think that’s the recipe
for success. And I think it’s going to mean Banks’ Safety?
���������������������������������������� that your folks here get back to work We’re concerned about the safety of
much faster than people in other parts of the banks but we’re also concerned that
the country who don’t have those active
������������ and real partnerships.
we’re able to get finances to the small
businesses. We think this is a very im-
�������
��������������� ���������
���
��� Where Are the Jobs?
portant ingredient. And it’s a place where
the government may be able to step in
���������
����������� ����������������� ����� ��������� On a national basis, the two growth and ensure the banks their safety and
sectors throughout the recession have also provide the lending we need to get
����������� ����������������� ����� been education – both K-12 education business going.
and higher education, they’re still hir-
���������� �������������������� ����� ing – and allied health. Everything from Money Will Come From?
������������������ RNs – the shortage that we hear so The money’s going to come from
������� ��������������������������� ����� much about – to all the technical work where it always has and that is the
��������������
��������������������������������� ����� that’s done in hospitals . … The most investments and savings in the banks.
important thing is to go to your local Right now we’re in a very down economy
OneStop and really look at the labor and we need to make some exceptions
market information for your local area. to make sure that the banks can be suc-
�������������� Here in northern Ohio you’re going to
see growth in wind turbine and solar-
cessful, but even more so that they spur
business to continue to grow. We need
������������ panel manufacturing that you won’t see to get jobs going and that’s going to be
����������������������� in the southern part of the state. our focus.
�����������������������������������������������������������������������������
Visit www.business-journal.com to view insightful video interviews with the Valley’s most influ-
ential business and community leaders. Topics are always timely and pertinent.
The Business Journal MARCH 2010 59
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