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David C. Munson RBJ 2019 David C. Munson RIT president discusses joys and challenges INSIDE The region’s largest employers Weathering middle skills drought CEO views of the economy Get Greater Rochester’s business news and information 16 W. Main St., Suite 341 online every day and in print Rochester, NY 14614 every Friday. (585) 232-6920 Fax: (585) 546-3398 Email: [email protected] RBJ.net/subscribe • 866-941-4130 www.rbjdaily.com SUZANNE E. FISCHER-HUETTNER Publisher BEN JACOBS Editor DICK MOSS Special Products Editor OUR COLLABORATION MATTERS ANDREW GREEN Research Director BILL ALDEN WHEN LOOKING FOR Copy Editor KELLY PLESSINGER COUNSEL WHO CARES Digital Content Manager DIANA LOUISE CARTER AS MUCH AS YOU DO Reporter GINO FANELLI Our attorneys and consultants are invested in understanding your Reporter business and industry, knowledge that is key to crafting customized and KEVIN OKLOBZIJA Reporter effective solutions to take advantage of opportunities and address your VELVET SPICER pressing challenges. Our dedicated client teams are organized for optimal Reporter efficiencies and devoted to delivering high value with dependable and TRACY BUMBA Audience Development Manager proactive communication. Together, we strategize to get the job done. JEAN MOORHOUSE Account Manager MICHELLE SANFILIPPO Account Manager JESSICA SIMS Events & Marketi ng Coordinator RACHEL ZACHARY Public Noti ce & Adverti sing Coordinator Contact our Rochester Office Managing Partner Heidi S. Gregory | 585.419.8800 KADY WEDDLE Special Publicati ons Supervisor HEATHER HEATER Graphic Designer ERIN ROPER Ad Designer ©2019 by Rochester Business Journal. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without permission in writing from the publisher. The ROCHESTER BUSINESS JOURNAL RBJ (ISSN 0896-3274) is published weekly for $84 a year by Rochester Business Journal, 16 W. Main St., Suite 341, Rochester, NY 14614. Periodicals postage paid at Rochester, N.Y. Image used is stock photography. Postmaster: Please send address changes to Rochester Business Journal, Meet our statewide attorneys and consultants at www.harrisbeach.com PO Box 1051, Williamsport, PA 17703. ALBANY BUFFALO ITHACA MELVILLE NEW YORK CITY ROCHESTER SARATOGA SPRINGS SYRACUSE UNIONDALE WHITE PLAINS NEW HAVEN, CT NEWARK, NJ Rochester BusinessJournal and 99 Garnsey Road, Pittsford, NY 14534 The Daily Record NY are owned by BridgeTower Media. RBJ 2 Rochester Business Journal Table of Contents 4 Introduction 5 CEO views of the economy 6 How companies are addressing Glossary 6 graying of the workforce Annualized total return—total re- Paychex is evolving but tries to turn, compounded monthly with dividends 8 reinvested, stated on annual basis stay true to its roots Sales, earnings, executive com- 10 The RBJ 75: The region’s pensation— from fiscal year-end 8 largest employers annual reports, proxy statements or other public filings 13 Lists: Public company NA—Not available or not applica- performance ble 14 Charting the RBJ 75 NM—Not meaningful 15 15 Q&A: RIT’s new president, NR—Not ranked William Munson 19 How Rochester is weathering middle skills drought 19 21 The RBJ 75 CEOs Business is Complex. Paychex Makes it Simple. For nearly 50 years, we’ve made it simple for businesses to pay and manage employees. We handle their benefits programs, help guide them through human resources challenges, keep them up to date with ever-changing laws and regulations. We do it on many levels – with our innovative technology platform, experienced professionals and dedicated experts, online and mobile, over the phone, and in person. At Paychex, we work with you the way you want to work. Empower your business at paychex.com/Roc RBJ Rochester Business Journal 3 Letter from the Editor Nonprofi ts, health care thrive Health care has long been a nonprofi ts, up from 53 percent from 36,479 to 30,182, and pri- ees to make the list for the fi rst crucial part of the Rochester a year ago. vate companies now supply 22 time, and Companion Care of of economy, but as we compiled The two orga- percent of the Rochester Inc. added 212 local this 30th edition of the RBJ 75, nizations that local employ- employees. the industry’s impact on the re- grew the most ment among The number of public compa- gion became more apparent in the past year RBJ 75 com- nies on this year’s list increased than ever. are both non- panies, down to 25, from 23 last year, while More than 30 of the 75 com- profi ts working from 26 per- local employment among pub- panies on this year’s list work— in the health cent last year. lic companies on the RBJ 75 whether exclusively or in part— care indus- The biggest climbed from 29,970 to 30,357. in the health care and human try: University contributor The public sector’s share of the services fi elds. As many of these of Rochester to the decline job total on the RBJ 75 ticked companies are nonprofi ts, this (added 817 em- was Sutherland up from 21 percent to 22 per- goes hand in hand with the con- ployees) and Global Services cent. Of course, the numbers in tinuing growth in nonprofi t em- Rochester Re- Inc., which has the local sector would be even ployment on the list. gional Health 996 fewer local better if not for the compa- There are 29 nonprofi ts on (602). employees. nies that used to drive the lo- this year’s list, up from 26 a year The number Even in the cal economy. Xerox Corp. shed ago. Those organizations em- of private com- private sector, 2,100 local employees to fall to ploy 78,032 people locally, up panies on the the health care 3,400, while Eastman Kodak Co. from 74,974 in local employment RBJ 75 declined signifi cant- industry was a bright spot. An- dropped from 1,640 local em- among nonprofi ts last year. That ly from 26 last year to 21 this gels in Your Home added 403 ployees to 1,505. means 56 percent of local jobs year. Employment by private jobs, while All-American Home at RBJ 75 companies are with companies on the list dropped Care added 273 local employ- —Ben Jacobs, Editor Established 1969 Celebrating 100 Years of Work. Wellness. Independence. strength. stability. service. Everything you need in a bank. For relationships that span generations. Canandaigua National Bank & Trust has remained an independent, community bank since 1887—with stable, local leadership that has allowed us to thrive in every kind of economy. We stay focused on our customers’ needs and provide new and innovative ways to meet them, without changing our commitment to personal service. So we can be your bank now, and for future generations. As always, CNB continues to invest in you. Discover the CNB difference today. Call or visit your neighborhood CNB office, or visit CNBank.com. ® (585) 394-4260 | Member FDIC BLOOMFIELD • BRIGHTON • CANANDAIGUA–LAKESHORE • CANANDAIGUA–MAIN • CHILI • FARMINGTON GREECE–LATTA & LONG POND • GREECE RIDGE • HENRIETTA • HONEOYE • HONEOYE FALLS • IRONDEQUOIT MANCHESTER-SHORTSVILLE • MENDON • PENFIELD • PERINTON • PITTSFORD • ROCHESTER–ALEXANDER PARK ROCHESTER–COLLEGE TOWN • ROCHESTER–EAST MAIN • VICTOR • WEBSTER–BAYTOWNE • WEBSTER JACKSON-RIDGE RBJ 4 Rochester Business Journal CEOs’ thoughts on the economy As part of RBJ’s survey of chief executive officers this year, we added four questions about the economy. We opted to use one question-and-answer from each of the responses, choosing what we thought were the best and most informative answers from each of the seven CEOs who responded. Bruce Van to be rising faster than supply. Faheem Masood, Saunt Industries such as healthcare and education have made up for some ESL Federal Credit Union Citizens of the manufacturing losses. And Q: Recent economic forecasts have been gen- Financial emerging growth companies con- tinue to leverage the highly-skilled erally pessimistic about the outlook for the next knowledge segment of the labor couple of years, predicting a slowdown, if not a Q: There are market. Retail is going through a downturn, in the US and global economic cycle. Do mixed eco- period of tremendous change—it is you agree with these forecasts or do you think the nomic signs not dead by any means. We’ll con- current rate of growth will continue, and why? at the Roch- tinue to see new approaches and A: Our economy has always worked in cycles and ester region- the integration of digital and retail we are experiencing the longest sustained period of al level, with a generally stable channels, much like what Amazon growth in our nation’s history. I agree that a slowdown will have to hap- commercial real estate sector, is doing with its stores and Whole pen at some point, but the Rochester region is unique in that it is a steady but ongoing challenges at the Foods. economy. We don’t see the high highs or the low lows like other regions brick-and-mortar retail level, to The business climate in New in the county, and from a standpoint of a looming correction or downturn, name one area of concern. What York is not as friendly as you see that’s an encouraging and positive characteristic for us. From a growth is your outlook for the Rochester in other states such as Texas and standpoint, unemployment remains at record lows, wages are growing, region’s economy and why? interest rates are still at historical lows, and there are still sectors showing A: Overall, the majority of our North Carolina. In addition, I signs of expansions—health care, education, multifamily commercial real clients in the Rochester region think you’ll see some pressure to are doing well.
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