July 3, 2017 • Vol. 28 • No. 27 • $2 SERVING BERKS, LEHIGH, NORTHAMPTON & SURROUNDING COUNTIES www.LVB.com Markets still trending upward but a correction looms By DAWN WIVELL first half will continue, barring any kets in advance of reality, and we SECOND HALF Special for Lehigh Valley Business 2017 FORECAST: unforeseen events and with perhaps may see a reality adjustment in the < An adjustment So far, it’s been a big year for slight adjustments in the market. second half,” said Jonathan Moyer, in the market as investors, and the second half of Those latter modifications could financial adviser Moyer Insurance & reality replaces 2017 should be similar – a strong one occur as reality replaces expecta- Financial Solutions of Reading. expectations. although the market could correct tions created by the Trump admin- Michael Joyce, president of < Slightly higher ILLUSTRATION/DARIUSL a bit. istration and as the Federal Reserve JoycePayne Partners of Bethlehem, interest rates. < Continued consumer and Financial advisers are optimistic increases benchmark funds rates. investor confidence. that the positive trends of the year’s “Expectations drive stock mar- please see UPWARD, page 4 ALL PAWS ON DECK More workplaces allow pets for stress relief, recruitment
By STACY WESCOE Some even pop their heads [email protected] into his ground-floor office for Robert Toedter, principal a quick hello. engineer at RT Consulting & Some of them, however, Engineering Inc., is a popular don’t even know his name. man in his office building at 65 He’s just known as “Molly’s E. Elizabeth Ave. in Bethlehem. Dad,” for the chocolate Most people stop to greet Labrador retriever he brings to him as he comes and goes. his office every day. Toedter doesn’t mind that PETS AT WORK his dog is the real attention getter because he knows she’s < Eight in 10 employees at bringing a little brightness into pet-friendly workplaces say having pets at work would make them feel everyone’s day by being there. more happy, relaxed and sociable. She is certainly good for him. Having pets at work is < 63 percent of employees becoming more common and in pet-friendly workplaces say they are very satisfied with their work helps to reduce stress and environment, nearly twice as many helps make people happier, as those in workplaces that do not more productive and more allow pets. social. It also helps to recruit < Those who work for pet- and retain talent, especially friendly employers describe their young adults. workplaces as friendly (47 percent), “If you just got off a bad productive (35 percent) and happy phone call, you can say, (30 percent). PHOTO/CHRISTOPHER HOLLAND Molly, a Labrador retriever, brightens the workday of Robert Toedter of RT Consulting & Engineering Inc. and others in their SOURCE: ONLINE SURVEY FOR NESTLE PURINA please see PAWS, page 10 Bethlehem office building.
OPINION: Times are changing, and it’s best to be on board | In sales, follow the golden rule | Can’t we all just get aligned? Pages 6-8
FEATURES INDEX Behind the List ���������������������������15 Briefs ��������������������������������������������4 Calendar �������������������������������������15 Classifieds ����������������������������������22 Focus �������������������������������������11-13 For Your Information �������������������15 Liens �������������������������������������17, 22 Newsmakers �������������������������������16 Off The Clock �������������������������20-21 FOCUS ON TOURISM Opinion ��������������������������������������6-8 The beauty and serenity of Upper Bucks and northern Montgomery County The Lists �������������������������������18, 19 draw visitors for day trips and weekends. Meanwhile in Bethlehem, Celtic Fest Transactions �������������������������17, 22 has been a big hit for tourism and businesses for 30 years. Pages 11-13 Highmark and Lehigh Valley Health Network BETTER TOGETHER When the region’s leading health insurer and health care provider work together, you win. Our collaborative approach helps make the right care at the right time more accessible and affordable.
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Highmark Blue Shield is an independent licensee of the Blue Cross and Blue Shield Association. LVB.com Lehigh Valley Business • July 3, 2017 3 Nevada developer to build 1M-square-foot warehouse
By WENDY SOLOMON [email protected] A Nevada-based developer of ware- houses will build its largest building in the country off Interstate 78 in Berks County at a cost of $50 million. And it is looking to invest more in the region. Dermody Properties, a national real estate investment, development and man- agement company PHOTO/WENDY SOLOMON in Reno, will build Officials attend the groundbreaking for the the LogistiCenter LogistiCenter at Midway in Bethel Township. at Midway, a 1,081,200-square-foot radius. That’s a one-day truck drive,” warehouse on 136 Kiersey said. acres off Exit 16 in “We’re very bullish on the Lehigh Bethel Township. Valley. We’re seeking additional invest- The building is ment.” ‘This means expected to open next CONTINUED E-COMMERCE GROWTH we get to be spring. While e-commerce is driving the growth Gene Preston, of distribution centers, it represents less a player.’ partner at Dermody than 10 percent of U.S. retail sales but will — Pamela Properties, East region continue to grow, Kiersey said. Shupp, Greater office in Chatham, “We think it’s going to be 20 percent in Reading Economic N.J., said the facility CONTRIBUTED five to 10 years,” he said. Partnership Rendering of the $50 million LogistiCenter at Midway, a 1,081,200-square-foot warehouse in has already attracted a Bethel Township. The warehouse will be Dermody’s couple of prospective second in Bethel. The company built a tenants. He declined to name them, saying ‘WE NEED THIS KIND OF INVESTMENT’ Properties, said the region has several 750,000-square-foot distribution center they are “big names.” The site now has the utility and water essential factors – transportation, labor four years ago at Berks Park 78, off I-78 While the building will be designed so it infrastructure developers seek for large and infrastructure – that make it attractive and Route 501, now leased by Samsung can house several tenants, Preston said it warehouses, Shupp said. for warehouse development. Electronics. would likely be used by a single occupant, “This means we get to be a player,” she “This is an area where our distribu- In 2016, Dermody completed the a trend seen elsewhere in the marketplace. said. tion customers can serve 40 percent of LogistiCenter at 33, a 475,000-square-foot Single occupancy is more economical and Shupp said the partnership has fielded the U.S. population and 60 percent of the facility in Forks Township near the Route efficient for large companies because of an inquiry about the warehouse from Canadian population within a 500-mile 33 interchange, and is looking for a tenant. the investments they make in sophisticat- an anonymous prospect who is seeking ed equipment used for tracking and mov- 500,000 square feet of space. ing goods, among other factors, he said. “We need this kind of investment,” state “This is a really important day for us Sen. David Argall told the small crowd at because our sites in Berks County had not the groundbreaking. been shovel-ready before,” said Pamela 300 PERMANENT JOBS Shupp, president of the Greater Reading The warehouse will not only create 200 Economic Partnership, who was among construction jobs and 300 permanent jobs the officials who attended the ground- after it is completed, he said, but provide breaking Wednesday as bulldozers cleared $700,000 in property taxes to the county, a wheat field in the background. township and school district. “It’s going to be a facility that is going to create jobs for generations,” Argall said LOGISTICENTER AT MIDWAY later. < Where: 270 Midway Road, Bethel Township, Lured by the Greater Lehigh Valley’s Berks County. growing dominance as an East Coast cen- < What: 1,081,200-square-foot cross-dock ter for distribution centers, Dermody’s warehouse with four optional office locations for warehouse construction in the region has single or multiuse tenants. been picking up pace the last four years. < Parcel: 136 acres. The company has 5 million square feet < Clearance height: 36 feet. of space built or under construction in To Do: < Doors: 212 dock doors with 35,000-pound Pennsylvania and southern New Jersey, �� co�ier mechanical levelers. Preston said. < Parking: 207 cars (expandable to 309); 368 BULLISH ON THE REGION review invoices trailers, expandable to 438. Doug Kiersey, president of Dermody make our office look amazing!!
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“Fear Index” by many investors, has been UPWARD A BIG START TO 2017 low for a while. continued from page 1 The first half of the year was a strong one for the “While it can continue to be low into the financial markets. future, our view is that many good things also sees a good chance for a correction in Optimistic investors, decreased volatility, [strong corporate earnings, tax reform, etc.] Volume 28, Number 27 65 E. Elizabeth Ave., Suite 400 the financial markets. corporate earnings that exceeded expectations, are priced into the market already, and Bethlehem, PA 18018 “However, at this point we don’t believe heightened expectations for earnings growth across policy missteps or an exogenous shock to 610-807-9619 • [email protected] many industries and a drop in the U.S. dollar, which that a correction in the markets would be the system could cause the market to pause affected international stocks, are some of the factors Publisher the beginning of a bear or go into reverse,” said Kevin Karpuk of Michael O’Rourke that contributed to the great returns for investors in [email protected] • ext. 4112 market, so we would the first half of 2017. Cornerstone Advisors Asset Management likely ride out any cor- LLC in Bethlehem. Office Manager But perhaps the biggest influence on investments Cheryl Gaydos • [email protected] • ext. 4119 rection that occurs in was the Trump administration’s promise of reduced “Unlike in prior market resets, there the near-term,” Joyce regulatory burdens, tax reform and pro-business doesn’t appear to be the large financial NEWS policies. Editor said. imbalances in the system that would cause Bill Kline • [email protected] • ext. 4115 Timothy Roof, assis- a meltdown that would not find a bot- Staff Reporters tant vice president “With the caveat that it took me six years tom at a painful, but reasonable level,” he Brian Pedersen • [email protected] • ext. 4108 with Valley National to be partially right on interest rates, I think added. Wendy Solomon • [email protected] • ext. 4118 ‘If fiscal Financial Advisors in interest rates could drift modestly higher “Most companies have relatively strong Bethlehem, also talked – especially if U.S. economic growth acceler- balance sheets, which investors would find Senior Writer/Online Editor Stacy Wescoe • [email protected] • ext. 4104 policy is able about the possibility of a ates in the latter part of the year,” Joyce said. attractive at discounts from today’s price Researcher to deliver short-term setback. With slightly higher interest rates, there levels.” Christopher Holland • [email protected] • ext. 4110 “If tax reform doesn’t could be a whiff of inflation, Joyce said. FOREIGN STOCKS pro-growth DESIGN/PRODUCTION meet expectations, “Real wages are increasing,” he said. For decades, U.S. stocks have outper- Designer reforms, it we may experience a “We’re not talking about 1979-1980 type of formed non-U.S. stocks. However, that did John Layton short-term pullback in inflation but modestly higher than the past not occur in the first half of the year. could help AUDIENCE DEVELOPMENT the equity markets as decade.” That may continue in the second half, VP Audience Development accelerate volatility has been quite HIKE IN WAGES, BUSINESS INVESTMENT Moyer said, cautioning that everything is Zander Gambill the pace of muted thus far in 2017,” Consumer and investor sentiment is the cyclical. Audience Development Manager Roof said. “As long as strongest in years. “International equity valuations still look Sherry Andersen growth.’ the consumer remains “Labor markets are tight, and there are attractive relative to the U.S. stock market,” For subscription information and questions, please call 888-506-5770 — Timothy Roof, healthy, interest rates real wage increases that are occurring, Joyce said, “and investors would do well to Valley National remain favorable, and which bodes well for continued strength in have appropriate amounts allocated there.” ADVERTISING Financial Advisors earnings growth meets consumer spending. Business investment, PRO-GROWTH EFFORTS Senior Account Executive John C. Coyle III • [email protected] • ext. 4105 or exceeds expectations, which had been abysmal, is showing signs In the second half of 2017, investors should Account Executive the positive stock market trend can remain of improvement,” Joyce said. keep an eye on the progress of fiscal reform, Jennifer Rush • [email protected] • ext. 4106 in place.” “Of course, you can have too much of a good corporate earnings and geopolitical events. Special Inserts Account Executives INTEREST RATES AND INFLATION thing because a pickup in in economic growth “If fiscal policy is able to deliver pro- Jordan McCoonse • [email protected] • ext. 4113 Moyer said the Federal Reserve is could also lead to more inflation, which, in growth reforms, it could help accelerate the Nancy Signorovitch • [email protected] • ext. 4117 expected to increase its benchmark funds turn, could beget interest rates that rise faster pace of growth,” Roof said. rate, which may result in an increase in the than the markets currently have priced in.” EVENTS interest rates on savings, bonds, loans and STRONG BALANCE SHEETS Events Director Wendy Berg certificates of deposit. The VIX index, which is considered the please see UPWARD, page 5 [email protected] Events Coordinator Dayna Edelman [email protected] • ext. 4109 These news briefs originally appeared in LVB.com’s Daily News email or as breaking news. Sign up at LVB.com. BRIEFS Copyright 2017 by BridgeTower Media. All rights reserved. Volume 28, Number 27. Lehigh Valley Saucon Valley named to host said. Business is protected under the federal Copyright Act. The facility can now accommodate about 50 Reproductions of any part by any means or facsimiles U.S. Senior Open in 2022 without the express written permission of the publisher additional jobs, he added. The company employs are not permitted. Reprints of LVB articles are avail- Saucon Valley Country Club will host the 2022 able. For licensing, reprints, e-prints and plaques, email U.S. Senior Open, a major national golf champion- about 500 at its two Lehigh County bottling facili- [email protected]. Authorization to photo- ties. copy articles for internal corporate or instructional use ship expected to draw more than 100,000 fans and may be obtained from the Copyright Clearance Center at 978-750-8400. the sport’s top senior players to the region. Lehigh Valley Business (ISSN 2169-219X) is pub- The event will be the eighth United States Golf OraSure, Gates Foundation lished weekly (except for the week of Christmas and one extra issue in December) by BridgeTower Media, 1500 Association event at the club in Upper Saucon CONTRIBUTED PHOTO partner for HIV testing Paxton St., Harrisburg, PA 17104-2633. Periodicals postage paid at Harrisburg, PA and at additional mail- Township. It previously hosted the U.S. Senior Open, The clubhouse at Saucon Valley Country Club A Bethlehem medical device manufacturer will ing offices. POSTMASTER: Send address changes to which is for players 50 and older, in 1992 and in Upper Saucon Township. The club will host supply its HIV diagnostic product to developing Lehigh Valley Business, 1500 Paxton St., Harrisburg PA 17104-2633. 2000. Two other more recent USGA events at the its third U.S. Senior Open in 2022. countries at a reduced cost, thanks to a global Lehigh Valley Business services business own- foundation. ers, managers and professionals in an eight-county club were the U.S. Women’s Open in 2009 and the beverage choice for consumers, one Lehigh County region comprising Berks, Lehigh, Northampton, Carbon, U.S. Mid-Amateur tournament, for those 25 and OraSure Technologies Inc. of Bethlehem said it Schuylkill, Monroe, northern Bucks and northern water bottling company said it completed a $79 Montgomery counties. older, in 2014. million expansion to accommodate the increased entered into an agreement with the Bill & Melinda Subscriptions are available for $56 per year, two years “Everything has always gone well when we demand. Gates Foundation that will allow OraSure to offer its for $89, and three years for $119. hosted events,” Saucon president David Kennedy Nestle Waters North America said it finished its OraQuick HIV Self-Test at an affordable price in 50 Note to Readers said. developing countries in Africa and Asia with funding Opinions expressed in any commentary published in two-year expansion of its Nestle Pure Life East bot- this newspaper are not necessarily those of Lehigh Valley The 2022 Senior Open coincides with the club’s tling facility in Breinigsville. from the Gates Foundation. Business. Any suggestion written in material published by this 100th anniversary and will occur when many top “The consumer continues to look for healthy OraSure manufactures, develops, markets and newspaper is not to be regarded as advice (legal, tax, players, such as fan favorite Phil Mickelson and sells oral fluid diagnostic products and specimen investment or otherwise), and Lehigh Valley Business alternatives for beverages,” said Mike Franceschetti, assumes no liability for actions taken by any group or Pennsylvania native Jim Furyk, would be eligible to Nestle Waters plant manager. collection devices. individual based upon such material. We welcome your opinion on issues. Write to Lehigh play, Kennedy said. The expansion includes the $23 million invest- While people in these developing countries have Valley Business at the address listed above, c/o Editor. You Mickelson will turn 50 in 2020 and is expected ment the company made in Production Line 17, some ability to pay, it’s often limited, and this is also can email your comments to [email protected]. to be a major draw, Kennedy said. which expanded bottling operations for Nestle Wa- one of the challenges in getting the product to this Published by BridgeTower Media “There’s kind of a new wave of names coming ters 0.5-liter bottled water products. The company market, said Douglas Michels, president and CEO of online,” Kennedy said. then invested $56 million to build Production lines OraSure Technologies. 18 and 19, which now produce 8-ounce, 0.5-liter, The company said the funding from the Gates Breinigsville bottling company 700-milliliter and 1-liter products. Foundation will be in an aggregate amount not completes $79M expansion The company also added another 100,000 to exceed $20 million over the four-year term, or With water toppling soda as the most popular square feet to its warehouse space, Franceschetti exceed $6 million any year of the agreement. LVB.com Lehigh Valley Business • July 3, 2017 5
DISCIPLINE AND DIVERSIFICATION Regardless of what the second half of 2017 brings, financial advisers said that investing continues to be about discipline, diversification, focusing on goals (including allocating appropriately) and focusing on the long term. “It’s important for investors to align their investment allocations with their objectives and remain disciplined,” said Timothy Roof, assistant vice president with Valley National Financial Advisors in Bethlehem. “Rebalance your portfolio to effectively manage your risks, and don’t let emotions drive investment decisions.” While the financial markets have been Karpuk favorable for an extended period, investors must maintain discipline and not get out “over their skis” from an asset allocation standpoint, said Kevin Karpuk of Cornerstone Advisors Asset Management PHOTO/GINASANDERS LLC in Bethlehem. In the second half of 2017, investors should keep an eye on the progress of fiscal reform, corporate earnings and geopolitical events. “It is a mental bias that people assume what has happened in the recent past is likely to “The economy is sluggishly growing thing that we didn’t discuss here that will continue, but as any seasoned investor knows, this UPWARD now, but if the Fed doesn’t maintain good impact the markets either positively or is not always the case. If investors are properly continued from page 4 balance in their goals of low inflation and negatively.” allocated in their portfolio, they should be able to low unemployment or the federal govern- ECONOMY NOT POLITICS weather a storm in the markets until a recovery Advisers also are concerned about geo- ment can’t come to amicable solutions on Joyce cautioned about fixation on poli- occurs,” Karpuk said. political risks such as the uncertainty of the budget, debt limit, etc., there could be tics and the happenings in Washington. “Our concern is that many investors, personal and institutional alike, have gotten too risky in their historical trade relationships. heightened risks in the market,” Karpuk “However, politics and policy specula- investments in search of return maximization and “We don’t know where that will go,” said. tion will have less impact – whether good could suffer outsized losses should this relatively Moyer said. “Throw in the uncertainty of “On the flip side, if the consumer or bad – than most people believe they calm market start to behave poorly. If there are risk North Korea and development of nuclear continues to spend and corporate earn- will,” he said. mismatches in an investment portfolio, the time to weaponry.” ings meet or exceed expectations, we “At the end of the day, fundamental rectify those is when markets are favorable rather INFLUENCE OF THE FED can see continued profits in the market. economic factors will have a more mean- than after the fact when it might be too late.” Karpuk noted the importance of the Fed. Of course, in a year, there will be some- ingful impact.” 2017
The 2017 Top 100 Private Companies edition will be this year’s most anticipated read with exclusive information on SPACE RESERVATION the leading companies that make up the dream team of privately held businesses here in the Greater Lehigh Valley CALL TODAY! Region. This special edition, magazine format publication, will reveal the companies who made the list and provide insight from the champion executives who have led them to success. Top 100 Private Companies is your opportunity to reach the PUBLICATION DATE: August 21, 2017 local titans of industry and promote your fi rm to the business decision makers of our region in this must read publication. 6 Lehigh Valley Business OPINION July 3, 2017 LVB.com Things are crazy, folks, and you had better join the party If asked what United Parcel Service angry customers demand a fix. does, probably you will respond, “Deliver The rise of 3-D printers, That was yesterday’s outcome. packages.” e-commerce and consumer ‘UNITED PROBLEM SOLVER’ And you would be correct – sort of. demand to want things now has Today, you call UPS. created a new world for business. It is true that UPS delivers more than 19 In at least 30 locations across the million packages daily United States, “United Problem Solver” to nearly 9 million cus- can 3-D print the part you need, often in tomers in 200 coun- just a few hours. tries. It also is true it Just think what that kind of turnaround operates storefronts does to the warehousing of inventory. where thousands of Tomorrow’s large warehousing complexes customers stop by will stand as empty as today’s shopping daily to ship packages PHOTO/ SCANRAIL centers. and even mail. DELIVERY BY DRONE Ira But the UPS you The average customer will also feel the Wolfe know isn’t the busi- how would they answer? gest threat is the convergence of advanced effects of this sci-fi-like business revolu- ness UPS is becoming. When was the last time you asked them, technologies with innovative business tion. It’s no longer using its slogan, “What can “What do you expect us to do for you?” models fueled by the accelerating pace of Meet Joe. He just ordered a pair of brown do for you?” The answer might surprise you. disruption. shoes on Amazon. Today, UPS is calling itself the “United Your business, your job and the work YESTERDAY’S WORLD Today, the order is filled, boxed and Problem Solver” when it comes to sup- you do are evolving – fast. The business One can learn a lot from UPS, so let’s shipped from an Amazon warehouse, and ply chain management. Tomorrow, who you are in today won’t be the business continue. as quickly as 24 hours later, Joe is wearing knows what this evolutionary business will you are in tomorrow, no matter how many You manage a manufacturing company, his new shoes, delivered to his front door become? generations ago your company may have and your primary production machine thanks to a human being working for UPS And that’s the point. been established. breaks down. You call the vendor for or FedEx. Is your organization evolving with the Your biggest threat isn’t globalization, service and are told the part you need is In the very near future, Joe’s shoes shifting needs of your customers? If you the economy, government regulations or a back-ordered. ask your customers what you do for them, new competitor down the street. Your big- Panic sets in as orders pile up and please see PARTY, page 8
TAKING STOCK: Lennox is hot – but things could turn cold Dear Mr. Berko: I have $2,000 to HVAC GIANT BOUNCE SOON invest. Please tell me about Lenox, the The company you mean is Lennox, COULD END company that makes that lovely china spelled with a double “n.” Morgan Stanley However, I’m con- and our faithful home air conditioner. took it public in July 1999 at $18.50 a cerned that the post- Do you think its value can increase? – LJ, share. recessionary bounce in Waterloo, Iowa Lennox International Inc. (LII-$191.07) LII’s business may be a Dear LJ: Lenox Corp. is a Bristol, Pa., is a $3.6 billion-revenue manufacturer of little long in the tooth. company that makes tableware and glass- heating, ventilation, air conditioning and Big-box retailers are ware – with pieces refrigeration equipment for the residen- opening fewer stores so beautiful, elegant tial, commercial and industrial market. (many are closing stores), and exquisite that Lennox divides its business into three and housing starts in the they have graced our segments: U.S. concern me. embassies the world Residential heating and cooling gener- Also, LII’s internation- over and have been ates 55 percent of revenues. al business (Europe and PHOTO/LISAFX used as serving pieces Commercial heating and cooling (res- Air conditioning, along with heating and refrigeration, is an China) could be subject at the White House taurants, office buildings, large retail unexciting, sweaty and stinky business. But it’s also enormously to a border adjustment since 1918. Lenox’s stores) generates 25 percent of revenues. profitable. tax under the Trump Malcolm hand-blown lead Refrigeration accounts for 20 percent administration. Berko crystal pieces have of revenues. In fact, many of supermarket billion. Net profit margins had marched to I’m concerned that the 166-point run- become highly desir- display cases carrying your favorite brands 8.2 percent. up in price since 2011 may encourage LII’s able collectors’ items, and prices for some of ice cream and other frozen foods have Return on total capital had improved officers and directors to sell their shares. stemware are out of sight. the Lennox imprimatur. to 48 percent. The dividend had segued to And indeed, some have. In 1999, the Environmental PROFITABLE VENTURES $1.58 as earnings sailed to $6.95 a share. Todd Bluedorn, chairman of the board Protection Agency decided to have a Air conditioning, heating and refrigera- And then management announced that and president, sold 34,000 shares recently, hissy fit. The dunderheads at the EPA tion is an unexciting, dirty, sweaty and it was going to buy back nearly 2 million and several other officers have sold more told Lenox to get the lead out of its stinky business. But by the hair on my shares. than 30,000 shares the past few months. glassware, or else. chinny chin chin, it’s also enormously ROSY 2017 AND 2018 RISK OUTWEIGHS POTENTIAL GAIN They reasoned that lead was poisonous profitable. LII’s product reputation is rock-solid. Some believe that LII has the power to for those who’d drink from Lenox stem- The Great Recession was officially over Post-recession demand continues strong reach $210-$230 in the next 18 months. ware and hazardous to the Lenox employ- in June 2009. In 2011, LII was trading at this year and most likely will next year. I think the risk of ownership at the cur- ees. In the process, the EPA buffoons spent $25 a share, and revenues were $3 billion. Revenues for 2017 should reach $3.9 rent price outweighs the potential for gain, $167 million (guesstimate) presenting Net profit margins were 2.7 percent. billion, and improved cost controls could but if you want to reach for the $210-$230 thousands of pages of testimony to sup- Return on total capital was 10.6 percent. increase net profit margins to 8.8 percent. level and a possible split, you have enough port their decision. The dividend was 72 cents, and share Therefore, LII expects to report a 12 cash to buy 10 shares. Try as it might, Lenox could not find a earnings were $1.65. percent increase in share earnings to $7.85 formula to make glass of the same quality RAMPING IT UP and may increase the dividend to $1.74. Florida-based Malcolm Berko regu- without lead. Therefore, in 2002, the EPA Then, for unknown reasons, the folks in And 2018 looks even better, with pro- larly dispenses financial advice. You may forced Lenox to close a New Jersey factory management found religion. They got off jected net profit margins of 9.2 percent, address questions to him at P.O. Box 8303, and pink-slip 358 employees. The EPA their fundaments and began to manage. projected earnings of $8.95 a share and a Largo, FL 33775 or by email at mjberko@ strikes again. By 2016, revenues had grown to $3.6 possible $2 dividend. yahoo.com. Creators Syndicate Inc. LVB.com July 3, 2017 OPINION Lehigh Valley Business 7 Following the golden rule paves the way to sales gold I have occasion to visit a beach town them to the not sports complex. in South Jersey that has a reputation for THE GOLD STANDARD so terra firma, But not just any sports complex, this being elitist. and in the shad- was the most remarkable, spacious collec- What it really is, however, is an island
Getting everyone in your company on It’s no wonder companies to cascade the communication to its teams the same page is critical to success. Devise a plan that everyone without a written strategic plan and direct reports. Without this alignment, it feels like has a stake in developing. Then struggle with alignment and Then everyone will be tied into the swimming against a growth. strategy and its successful execution. riptide, and in fact, write it down in a clear manner REPETITION, REPETITION And it’s not a once-and-done activity. if you don’t get this that everyone understands. Finally, as the leader, you It is an iterative process of think, plan, act, alignment, it can be as need to repeat yourself often in learn. fatal as a riptide. order to create the alignment REACTING-ONLY WILL FAIL It seems pretty and to get people back on the Jim Collins, renowned consultant simple – tell everyone rails when they veer off. and author of numerous business books what they need to do When you get to the point including “Good to Great,” says, “A com- and they’ll do it. Isn’t where your leadership team is pany without a written vision and plan to Tom that aligning every- PHOTO/GARAGESTOCK mocking you as you talk about achieve it has no chance of creating their Garrity one? What is so hard of strategic planning. the company’s vision, core val- future. They can only react to it.” about this? The third reason for a lack of alignment ues, core purpose, three-year key strategic Given that most family business owners There are several reasons for this dis- is the plan is not written down in a clear, moves, etc., then you know you’re on the have 90 percent of their wealth tied up in connect. concise manner that everyone under- right track. their business, that is a lot to risk to fate. For starters, as your company grows stands. One of your primary jobs as the leader It only makes sense to implement and you add people, it gets more complex. If the strategy is complex and difficult to is to create clarity and achieve the com- this into your business. Not only will it And the complexity becomes exponential understand, it’s probably wrong and has pany’s vision through your people. produce results today, such as growth, as you grow. It is not one-for-one. little chance to be implemented. People MEASURING RESULTS improved profitability and cash, it will Communication becomes the No. 1 will just check out. Tying this together is a methodology to drive business value for tomorrow. breakdown in the company. BETTER SUCCESS RATE monitor progress. As the leader, you need to control the Does writing it down really matter? What gets measured gets done. To win, Tom Garrity is managing partner of story, or someone else’s story will take According to a 2011 study by Gail you need to know the score and what the Compass Point Consulting LLC in Hanover hold. More likely, multiple stories. Matthews of Dominican University in score needs to be. Township, Northampton County. He is a Next, the leadership team does not California, a company that has clearly The most effective way is with a consis- certified coach with Gazelles International agree on the direction of the company and articulated, written goals is 50 percent tent rhythm of meetings to review progress and a certified exit planning adviser with how it will get here. more likely to achieve those goals. toward defined targets, make adjustments the Exit Planning Institute. Compass Point The path to this alignment is through If your plan to grow the company is based on what is learned in execution, and provides growth and business transition discussion and debate among the leader- only in your head, then you can be certain maintain focus and team alignment. consulting to small- and medium-sized ship team, devising a plan that everyone everyone else also has their version of how ENSURE EVERYONE KNOWS businesses. He can be reached at 610-336- has a stake in developing. This is the role to grow in their head, as well. After these meetings, the leaders need 0514 or [email protected].
is the whole torah; the rest is explanation.” sleigh to again embrace the frothy GOLD That is, of course, the veritable golden rule, and life really majesty of the sea and revel in the continued from page 7 is that simple. Be kind to others. Period. good company of fellowship. Regarding Rule 2, Benjamin Franklin famously said, And we will ignore the scions Meanwhile, the assiduous mainlanders slept soundly only “Honesty is the best policy.” of synthetic affluence with their a few miles away but light years in expressions of self-worth. He said that about 250 years ago, and you know what? It’s edifices of narcissism and continue THREE SIMPLE RULES still true, maybe even more so today. to bask in the simple pleasures This, of course, is what sales is all about: You can make the ALL ABOUT INTEGRITY of sunburn, jellyfish and hostile choice to go for the money and end up with nothing of real value, The late author and sales guru Zig Ziglar said, “The most seagulls. ‘You can have or you can make the choice to help people and create value. important persuasion tool you have in your entire arsenal is Because that’s the choice we make. everything in And sleep well. integrity.” life you want, The ethics of selling boils down to three simple rules: And when it comes to helping others, the Zigmeister said, Sales consultant and profession- THE STUFF OF TODAY But are you aware of the more immi- ging your comfortable present to your PARTY Far-fetched? Hardly. Amazon and UPS nent but also more subtle threat confront- chest, get over it. continued from page 6 already work together to fulfill millions of ing all us courtesy of the convergence of Preparing for the future isn’t a game. orders. advanced technologies with innovative It’s a test, and there are only two options – might be delivered by drone or robot or What happens when you add a company new business models. pass or fail. self-driving vehicle. such as Adidas that recently announced the The world is about to go crazy because Tomorrow will be nothing like today. FULFILLMENT WITHIN HOURS launch of its 3-D printed shoes? of exponential change, and too many What is the future of your business? What Better yet, Joe orders his shoes on You can see that Joe’s same-day, cus- people treat it as if they have an option do your customers expect you to be? Amazon in the morning. tom-made shoes are not the stuff of fan- whether or not to join the change party. The clock is ticking. Amazon forwards Joe’s order to the tasy. They are the stuff of tomorrow – or Change doesn’t request your atten- local UPS store that 3-D prints the shoes maybe even later today. dance – it demands you participate. Ira S. Wolfe of Wind Gap is president of the same day so Joe can pick up his cus- YOU MUST JUMP IN TIME IS OF THE ESSENCE Lehigh Valley-based Success Performance tom-made shoes that day. So maybe your organization is finally This era of exponential change is unlike Solutions and author of the new book Just a few hours later, Joe stops by UPS beginning to contemplate how robots, any period that any living being has ever “Recruiting in the Age of Googlization,” on his way home from work to pick up his drones and autonomous vehicles might experienced. Whether it’s bewilderment, to be released in September. He can be custom-made shoes ordered that morning. disrupt your business and jobs. ignorance or hubris that keeps you hug- reached at [email protected]. Presented by: Has your company experienced revenue growth from 2014-2016? Nominate your company to be recognized as part of the 2017 Fastest Growing Companies Awards. To submit your nomination, visit www.lvb.com/events Questions? For more information, please e-mail Dayna Edelman at [email protected] or call 610-807-9619 ext. 4109. SPONSORSHIP OPPORTUNITIES AVAILABLE Contact Mike O’Rourke for details: [email protected]/610-807-9619 ext. 4112 NOMINATION DEADLINE: FRIDAY, AUGUST 4 Major Sponsors: Supporting Sponsor: Join the conversation! #LVBFGC 10 Lehigh Valley Business • July 3, 2017 LVB.com PAWS continued from page 1 ‘I’m taking the dog for a walk,” said Ann Gallen Moll of Gallen Insurance in Sinking Spring, who brings to work ser- vice dogs that she fosters. “Everyone here loves it.” REDUCING STRESS Molly is Toedter’s second office dog. His original, Chelsea, died a few years ago. While he missed her dearly, he didn’t replace her right away. One day, his doctor warned that his blood pressure was getting a little high. It wasn’t dangerously high, but it was worth watching. The doctor asked Toedter if he was under more stress at work. He wasn’t, but he realized he was missing the stress-reducing effect of hav- ing his beloved pooch by his side in the office. He soon adopted Molly, and his blood pressure returned to normal – a sign that *All statistics are based on an online a good dog is good for one’s health. survey by Penn Schoen Berland HAPPIER, MORE PRODUCTIVE of Washington, D.C. for Nestle Toedter isn’t alone in the notion. Purina conducted among 1,004 respondents 18 and older in the U.S. Many experts praise the health benefits over six days in May. of having a pet. Dr. Kurt Venator, a veterinarian for Purina Pets in St. Louis, said studies have There can also be a group Large corporations have to take into shown that interacting with animals is benefit. If the dog’s owner is consideration things such as insurance good for your health, lowering stress hor- stuck in a meeting, others in in case someone gets bitten or property mones, improving blood pressure and the office can take the pet for a is damaged. There also should be a writ- encouraging exercise. walk and get exercise. ten policy on such things as what kind of By incorporating the benefits of pets That helps with communi- pets are allowed, how often and where. into the workplace, Purina found that cation. People who can coor- A toolkit on pets at work, published people are happier, more productive dinate dog walks can learn to by Mars Petcare, said policies are best and more social. In fact, Venator said the work better together and be developed by a committee of leadership ability to bring a pet to work was one of more productive, Venator said. and pet and nonpet owners with legal the most valuable employee benefits in a Plus, the positive influence counsel input and review. recent survey conducted by Purina, out- of a friendly, furry face tends POPULAR CONCEPT scoring even free coffee. to make people happier over- While there may be legal and human Venator said while pet owners have all. resources issues to wade through, the always known that pets calm frazzled BRINGING THE ENERGY ability to have pets in the office is a pop- nerves, scientific research has shown Anthony Marraccini, cura- ular idea, according to the Purina survey. that acts as simple as petting a dog for a tor at Connexions Gallery Venator said one-third of people in few minutes can dramatically lower lev- in Easton, said for 10 years nonpet-friendly workplaces want a pet els of the stress hormone, cortisol. Fredo, a chubby orange tabby CONTRIBUTED PHOTO policy and more than half than half of For 10 years until his death, Fredo was the official greeter Besides increasing blood pressure, cat, was the gallery’s official dog owners in nonpet-friendly workplac- at Connexions Gallery in Easton. His energy is missing at high levels of cortisol over time can sup- greeter. the gallery, owner Anthony Marraccini says. es said they would be likely to bring their press the immune system, raise blood “People would come in and dog to work if they could. sugar, decrease libido and contribute to pet him. He added a layer of Pets at work policies aren’t just for acne and obesity, research has shown. energy that you don’t get any other way,” Because, of course, not every work- dog lovers. Almost one-third of cat own- SPURS EXERCISE Marraccini said. place is the right workplace. ers would be likely to bring their cats to Moll, president of Gallen Insurance, Fredo died recently, and Marraccini Purina is a good example. While it has work. which has 20 employees, has been foster- said the gallery hasn’t been the same. had a pet-friendly workplace at its St. RECRUITMENT, RETENTION ing service dogs for Susquehanna Service “That energy he gave us is just miss- Louis headquarters for 20 years, its pet Pet-friendly policies are an attractive Dogs for two years and is always bringing ing,” he said. food manufacturing facility in Orefield lure for companies in competitive indus- new puppies into her office. She agreed MUST BE A GOOD FIT does not allow pets. tries where they are trying to recruit top that time with a puppy is a perfect cure However, Marraccini said, no one is PET POLICIES talent – especially with the younger gen- for stress. jumping to bring another gallery cat to The adoption of pet-at-work policies eration. “They’re calming,” she said. the store. has been a grass roots movement. The tech industry is particularly pet- Reducing cortisol levels isn’t the only “Not every pet is the right pet. He Most pet-friendly places are in friendly, with 17 percent allowing pets way a pooch at work can help keep off [Fredo] didn’t want to be left alone,” owner-operated businesses or small at work to attract millennials who often the pounds. Just as Moll’s staffers like Marraccini said. offices, such as RT Consulting and Gallen are working away from home for the first to walk the dogs for stress relief, people Moll agreed. She recalled that one of Insurance, but more big companies are time and enjoy the companionship of a with pets – especially dogs – tend to exer- the foster puppies she brought into her finding it beneficial to allow staff to bring pet. cise more. office once ate an employee’s lunch that pets to work, Venator said. Once the companies lure in that tal- Since dogs need walking during the was on his desk. The main reason pets are found more ent, pet-friendly policies can help with day, it gives an employee an excuse to “It was OK, because it was my brother,” often in small businesses is because it’s retention. The Purina survey showed a get up to exercise, Venator said. Moll said. But she can assume that could simpler to dictate a pet policy if you’re greater satisfaction among employees in BETTER COLLABORATION be a problem in a different office. the boss and you love pets. pet-friendly workplaces. CELTIC FEST TURNS 30 I N S I D E Annual cultural festival in Bethlehem has lifted business for three decades. Page 13 BusinessFOCUS ON TOURISM July 3, 2017 • www.LVB.com Next week: Forensic Accounting A countryside paradise in Upper Bucks, northern Montco By MELINDA RIZZO Special for Lehigh Valley Business Low-cost summer recreation can fuel local economies while offering visitors and residents alike a chance to unwind and have fun on less than a tank of gas and without breaking the bank. Upper Bucks and northern Montgomery counties are examples. “There’s so much to do in Upper Bucks County this summer, whether you’re here for the day or weekend, traveling as a family or a couple,” said Jerry Lepping, president and chief operating officer of Visit Bucks County in Bensalem. The rolling hills, lush farmland, parks, streams and lakes offer outdoor enthusi- asts a chance to enjoy a variety of sports and active recreation. “This area is a countryside lover’s para- dise with parks, lakes and outdoor adven- ture at every turn,” Lepping said. According to Tourism Economics and Visit Philadelphia, visitor spending in PHOTO/PAM MURRAY please see PARADISE, page 23 Green Lane Park in Green Lane offers boating, canoeing, kayaking and miles of hiking trails, fishing and year-round camping. Turn your meeting 26,000 sq. ft. of flexible Hiking and biking trails meeting space Indoor and outdoor pools into a retreat. 116 Room hotel with hot tubs Two restaurants with bars Mountainside fire pit and outdoor seating Complimentary Parking Some work & some play Full service spa Geocaching, disc golf, ! Lighted tennis courts paddle boating, etc. 101 Doe Mountain Lane | Macungie, PA 18062 | 866.754.2822 | bcmr.com 12 Lehigh Valley Business • July 3, 2017 LVB.com FOCUS ON TOURISM President, Pennsylvania’s Americana 5 QUESTIONS WITH Crystal Seitz Region - Reading, Berks County and more and more are looking for fun Hopewell Furnace, covered bridges and I wish our government officials would things to do on their weekends. They are the Pagoda), arts (the Goggleworks, our take the time to truly understand what more positive about their futures. studios on our main streets, national enter- tourism does for their area and help to tainment venues), culture (Pennsylvania fund it. After all, it is one of the main con- How do you connect with German Heritage Center, Reading Railroad tributors to creating a great place to live, potential visitors and Museum, festivals and so much more). work and play. Each convention and visi- 2 tourists? And our outdoor recreation (hiking, bik- tors bureau is marketing the location they ing and kayaking) is unsurpassed. Visitors serve to others throughout the state, coun- Pennsylvania’s Americana Region realize that they can’t see everything they try and world. connects in various ways with potential want in just one visit. visitors and tourists. With our change in I am proud to say that we have busi- What is the best piece of brand, we are marketing our region rather nesses who understand excellent custom- career advice that you ever than just our county. We understand that er service and are willing to go out of their 5 received? visitors are looking for an experience way for anyone. When you experience when traveling and do not know where the that, you always remember the way you I have had many careers in my life- county borders start and end. were treated and want to experience that time in various industries. Some of these How is the local economy? In today’s world, Pennsylvania’s again and again. careers were totally different from my Americana Region provides a comfort- starting point as a graphic designer. Chris 1 From a tourism perspective, my able, homespun, Americana experience If you could change one thing Kraras, CEO of White Star Tours, said to opinion is that the local economy is that includes arts, culture, history, festi- about your industry, what would me when I was offered the job, “It’s not picking up. Remember, tourism dollars are vals, outdoor recreation, and all spread 4 it be and why? rocket science; you will figure it out.” new dollars coming into an area. In turn, throughout a beautiful countryside. If I struggle with something, I think of those new dollars employ and provide great- Future trends tell us that individuals are That the tourism industry is not just that and go “no brainer, I’ll figure it out!” er revenue for local business. That means looking for these types of experiences to about fun, it is big business in this coun- I think the willingness to always push locals businesses are buying more supplies counterbalance the technology drive that try. It is often overshadowed by other forward and take calculated risks, plus and hiring more people, who in turn are happens so fast and furious in their day- types of industries. being good with people, reminds me – spending their dollars in the local market. to-day life. We offer that. Think about this: Many only relate don’t be afraid, you will figure it out. We have had an increase in hotel tourism as to when they go on vaca- occupancy and revenue this past year, How do you get visitors to return tion. They are excited and ready to get Editor’s note: Appearing periodically, 5 meaning people are traveling. Business/ to Berks County? What’s the most away, relax and have fun. But, as an Questions With spotlights a professional’s corporate travel has picked up consider- 3 important part of that equation? industry, tourism employs a huge number take on the economy and an industry. If ably. Individual travel, whether it is over- of people. It generates significant sales you have a suggestion for a subject for this night or day trips, is stronger than past years. We have such a tremendous mix of tax for our federal, state and local govern- feature, please email Bill Kline at billk@ People feel a little better about finances, tourism assets from historic sites (like ment and is an economic driver. lvb.com. LVB.com Lehigh Valley Business • July 3, 2017 13 FOCUS ON TOURISM Celtic Fest: Furthering business and culture for 30 years By JENNIFER TROXELL WOODWARD Special for Lehigh Valley Business One weekend a year, downtown Bethlehem is transformed into a Celtic- themed venue of kilt-wearing merrymak- ers. Bagpipers parade down Main Street, musical groups take center stage to crowds of thousands, merchants set up tents with cultural trinkets, food and beverage, and highland athletic games and competitions showcase some of the best athletes in the nation. Celtic Classic Highland Games and Festival, which is run by the Celtic Cultural Alliance, is celebrating its 30th year. The alliance, local businesses and vendors are getting tuned up to host yet another Celtic Fest on Sept. 22-24 with an expected crowd of 285,000, according to Jayne Ann Recker, executive director of the alliance. PHOTO COURTESY OF JAYNE ANN RECKER/CELTIC CULTURAL ALLIANCE “The economic impact is just huge,” Cultural entertainment and traditions are a big part of the Celtic Classic Highland Games and Festival held every September. Recker said. “Some of the hotels in the area are booked for that weekend by are talking about an event that draws by Christmas. Christmas. People who come for the festi- a quarter-million people to downtown The hotel fills 128 rooms that range val book their room for the following year. Bethlehem. They are dining in our restau- from $299 per night to $599 for the presi- We have dozens of vendors with tents set rants, staying at our hotels, shopping at dential suite. up at the event.” local merchants. So, it has an enormous “It is one of our largest [revenue] gener- The precise dollar figure is difficult to impact.” ating weekends all year, and we just enjoy gauge, she said, since the event is free and THEY BRING THE FAMILY the unique guests. They come from all the financial gain depends on a variety of Lynn Collins Cunningham, senior across the world,” Levine said. PHOTO COURTESY OF JAYNE ANN RECKER/CELTIC CULTURAL ALLIANCE factors, including patrons’ spending hab- Celtic Fest annually draws more than 250,000 vice president at the Bethlehem “Celtic fest is huge for us. Even our bell- its, the weather and attendance. people to Bethlehem. Chamber of Commerce, said Celtic Fest men wear kilts that weekend.” HIGHLAND GAMES is much different than others held in the The CCA is a nonprofit organization in partial shutdown of Main Street during region. Bethlehem dedicated to educating and the festival can be problematic. But, he “I used to work for the parking author- promoting Celtic heritage, which encom- said, the pros greatly outweigh the cons ity, and I can tell you once they come, passes a number of cultures, including in many respects. they stay until the entire thing is over. Ireland, Wales, Cornwall and Scotland, ‘ENORMOUS IMPACT’ These people are hard core,” Collins she said. Neville Gardner opened two Bethlehem Cunningham said of festival attendees. Festival funding comes from multiple businesses that thrive on providing goods “The merchants do well since a lot of sources, including fundraisers, grants and and services inspired from his Irish people shop at the stores.” Journey to Fun sponsorships as well as money collected upbringing. She said attendees don’t just arrive in from purchases made at Celtic Fest, she Gardner, who helped to launch pairs. They bring the entire family, stay With The Freedom said. Celtic Fest, owns Donegal Square and over, eat several times a day, fill up on gas of Choice “There are 40 food vendors and 60 McCarthy’s Red Stag Pub and Whiskey Bar before they leave and buys gifts and sou- retail merchants that sell nothing but in downtown Bethlehem. venirs. Celtic wares,” Recker said, adding that Beth Barry, spokeswoman for the two Meanwhile, marriage proposals are there are five stages for musical groups businesses, said Donegal Square sells made and, last year, a wedding took place. and performers. clothing, accessories, jewelry crafts and FROM ACROSS THE WORLD The festival annually hosts the U.S. other goods from Ireland and the British Historic Hotel Bethlehem marketing National Highland Games Championship, Isles. coordinator Brynn Levine said the hotel including events such as lifting a heavy “We have a tent during the festival is filled on festival weekend and then gets stone, throwing the hammer and tossing where we sell our wares,” Barry said. “We booked up for the following year’s festival the caber. Like the festival, the Highland Games are held Friday through Sunday. PROMOTING THE CULTURE A Choice Vacation ECONOMIC DRIVER free wi-fi or unplug Neville Gardner, a Bethlehem business owner, is credited with helping to establish the Celtic festival and get it up At Aardvark Sports Shop in the down- and running in 1987. free breakfast or sleep late town, manager Jon Notary said he sees Gardner, who grew up outside of Belfast and operates Donegal Square and McCarthy’s Red Stag Pub and Whiskey free 24 hour gym or ascend up Hawk the festival as a positive for Historic Bar, said the festival was created by three or four people. It was started as a way to blend Irish and Scottish cultures, Mountain on a hike Bethlehem. It brings in people from all mixing in some Welsh, Manx, Breton, Galician and Cornish, as well. free salt water pool or splash into over the world. He said that the festival debuted during a period of upheaval in Northern Ireland. It was a way to educate the Wild Water Kingdom at Dorney Park He said his store does well during the people of Lehigh Valley about the Celtic culture, since a significant portion of the population of the area is of Celtic Use Code “FUN” for a 10% Discount on reservations festival because of the Highland sports descent. booked through hotel or 800.300.8880 valid to July 31 competitions throughout the weekend. Gardner said many view Bethlehem as “the cultural center of the Lehigh Valley,” so the town became the chosen 7471 Keebler Way, Allentown PA 18106 Anytime there is such a large influx of destination for the festival. Near the junction of Route 78 people, it is good economically for the “We now have societies, dance schools, pipe bands, music groups playing Celtic music and a better understanding and Route 100 Hotel Reservations: 610.391.1500 businesses in town, Notary said. of Irish and Scottish and British Isles culture – and many people travel to the U.K.,” Gardner said. “The festival is very culturally focused, and the mix of music, piping, athletics, food and dance paint a great picture, Hotel Fax: 610.391.0386 He conceded some local businesses www.allentownparkhotel.com will say the parking limitations and the which attracts a wide cross section of people from all over North America and beyond.” Be a part of the construction boom in the Lehigh Valley! Lehigh Valley Business will offer an upfront view of the latest construction and real estate news and trends in both commercial and residential in our annual Fall Construction & eal Estate report. The issue will include up-to-date information on the current pro ects that are influencing the ehigh valley as well as the current real estate environment. The issue will also include lists of: L N L V L N L N L L N B L