October 1, 2018 • Vol. 29 • No. 40 • $2 SERVING BERKS, LEHIGH, NORTHAMPTON & SURROUNDING COUNTIES www.LVB.com As trade dispute continues, costs and TARIFFS’ TOLL uncertainty trouble manufacturers By BRIAN PEDERSEN [email protected] With more tariffs imposed by the U.S. on a growing number of products and materials, manufacturers find themselves grappling with the uncertainties of how an emerging trade conflict could affect their business. For American Keg Co. in Pottstown, the tariffs are increasing the costs of domestic steel, the only material the company uses to make its kegs. “We use American steel, all made here in Pottstown,” said Paul Czachor, the company CEO. He said American Keg is the only company in the nation to make its kegs out of American steel. From the beginning of the fourth quarter last year, prices for domestic steel have been more than 20 percent higher than prices for imported steel, Czachor said. “Most people would certainly want to buy American made; however, there is a limit,” Czachor said. “We are just asking for a level playing field.” The tariffs are driving up costs for many regional manufacturers that export products to China as well as for companies that buy products from China because of the quality of the material or lack of domestic suppliers. As costs rise, many manufacturers fear passing the cost on to consumers could cost them business. The uncertainty of how many products will be included PHOTO/AMERICAN KEG CO. An employee handles a steel keg inside the manufacturing facility at American Keg Co. in Potttsown. The company said it is the in the tariffs or how much they will increase also creates only U.S. keg maker using American steel. conflicts for manufacturers looking to run their business. With Canada included in recent U.S.-imposed tariffs, and the United Kingdom, all nations hit by U.S.-imposed tariffs. The chamber said an emerging trade war threatens $1.7 pressure is also falling on regional manufacturers that In response to the tariffs, China, the European Union, billion in Pennsylvania exports and the state’s hardest hit export products to that nation. Mexico and Canada have already retaliated or made plans products are coffee, iron/non-alloy steel coated/plated with According to the U.S. Chamber of Commerce, to strike back with billions of dollars on American-made Pennsylvania’s top export markets are Canada, Mexico, China products, according to the chamber. please see TARIFFS, page 15 Warehouse boom squeezes small manufacturers By JENNIFER TROXELL WOODWARD They are creating jobs and boosting the Manufacturing officials say that they shrinking pool of truck drivers, less capac- Special for Lehigh Valley Business local economy. But smaller manufactur- have to raise wages to compete with the ity on truck hauls and growing highway The industrial landscape in Eastern and ers are feeling the pinch as they fight to fill starting salaries offered at warehouses congestion. Central Pennsylvania is flourishing with skilled jobs, retain good workers and get and distribution centers. Transportation warehouse and distribution centers. their goods shipped to customers. of goods, meanwhile, is hampered by a please see SMALL, page 5 EXPO 2018! Build your business and network with an exhibit at Lehigh Valley Business Expo 2018 on Oct. 3. Information at www.lvb.com/expo. FRESHPET FEATURES INDEX Behind the List ........................17 POISED FOR Briefs .........................................2 GROWTH Calendar ..................................17 Freshpet, a pet food Classifieds ...............................20 manufacturer in Focus .......................................11 Hanover Township, For Your Information ................17 Northampton County, is expanding its facility Off the Clock ............................19 and growing revenues. Opinion ...................................6-9 Page 11 The List .............................. 21-22 2 Lehigh Valley Business • October 1, 2018 LVB.com BRIEFS These news briefs originally appeared in LVB.com’s Daily News email or as breaking news. Sign up at LVB.com. Sign of warehouse growth: Major Pocono resorts owner expands in central truck companies expand maintenance Pa. with $76M acquisition facilities in Berks The Missouri-based owner of Jack Frost and Big Boul- In a sign of the growth of distribution warehouses der Ski Resorts in the Poconos has just purchased the in the Greater Lehigh Valley, two of the largest trucking owner of a number of central Pennsylvania resorts for $76 companies in the country have opened new maintenance million. facilities in Berks County. Peak Resorts Inc. has purchased Snow Time Inc., which Ryder System Inc., based in Miami, and Old Dominion is the parent company of Roundtop Mountain Resort in Freight Line Inc., based in Thomasville, N.C., built facilities York County as well as Liberty Mountain Resort in Adams near major highways and Interstates 78 and 81. County and Whitetail Resort in Franklin County. Ryder opened a 14,000-square-foot, full-service Including Jack Frost and Big Boulder, Peak Resorts maintenance garage last week at 86 Ashley Way, off Route operates 14 ski resorts, primarily in the Northeast and 61 in Ontelaunee Township, near Leesport. The facility will Midwest, 13 of which are company owned. Most of the serve the growing number of trucks powered with alterna- 280-seat space for both indoor and outdoor dining, said resorts are located within 100 miles of major metropolitan tive energy, such as natural gas and electricity, as well as manager Anthony Trapani. The restaurant also offers two markets, including New York City, Boston, Philadelphia, diesel trucks. private dining areas. Cleveland and St. Louis. In June, Old Dominion opened an 82-door service Weather permitting, rooftop seating would be available center on a 16-acre site in Cumru Township, near Birds- year-round, he added. St. Luke’s opens two new health centers boro. The company has eight centers in Pennsylvania, St. Luke’s University Health Network recently opened including Bethlehem Township and Harrisburg. The latest Kutztown University unveils social media lab two health centers in the region. facility is near Interstate 176 and Route 422, and helps As jobs in social media continue to grow, employers are The newly built St. Luke’s Health Center-Belvidere boost the company’s presence in eastern Pennsylvania. increasingly honing in on applicants with the right skills. opened this month at 187 County Route 519, Warren Old Dominion is expanding nationally and recently And colleges and universities are looking to make sure County, N.J. The center includes physicians who are spe- finished upgrading or building six new facilities. their students graduate with those skills. cialists in rheumatology and orthopedics, including hand Among them is Kutztown University, which last week and wrist and primary care sports medicine. Rooftop restaurant ready for November debut opened its Social Media Analytics Strategic Hub, or Other services include St. Luke’s Belvidere Family Prac- In November, a $20M office complex long champi- SMASH. Officials hosted a ribbon cutting for the lab, which tice, a laboratory, a physical therapy office and a walk-in oned as a catalyst for helping to revitalize South Side the university designed specifically for students in its St. Luke’s Care Now office. The walk-in clinic is the 15th in Bethlehem will see its newest tenant open a rooftop social media theory and strategy major. the network. restaurant. The major, which the university introduced a year St. Luke’s Miners Health Center recently opened in a The creators of Grille 3501 in South Whitehall Township ago, has 48 students, said Diana Ebersole, associate medical office building, 411 S. Shenandoah Road, Ring- plan to open a second restaurant, Zest Bar and Grille, on professor and chairperson of communication studies town, Schuylkill County. the sixth floor of the new building at 306 South New St. in at Kutztown University. In the spring, students will be The center is SLUHN’s third rural health clinic. The Bethlehem. able to minor in social media theory and strategy, she others are in Nesquehoning and Tamaqua in Carbon Zest will offer a menu of New American cuisine in a said. County. LVB.com Lehigh Valley Business • October 1, 2018 3 R.M. Candy maker creates sweet traditions Palmer Co. in West By KIM SODEN ing part in the United Way Campaign, for many years and helped us imple- Reading Special for Lehigh Valley Business plans to which has been a long tradition at R.M. ment a campaign analysis process that kick off For 70 years a family-owned business Palmer. we use to this day to develop campaign the holiday in Berks County has filled Easter bas- “R.M. Palmer Co. has a long-standing strategies.” season kets, Christmas stockings, Halloween history of supporting United Way and What’s new for the 71st year? with a life-sized bags and Valentine’s Day hearts with our community,” said Tammy White, “We’re coming out with a real-size foot- hollow hollow bunnies, gold coins, Santas and president of the United Way of Berks ball,” Schlott said. “It’s nothing anyone has chocolate many other types of character or theme County. “Rich Palmer served as our really ever seen before. We’re launching football. candy. board chair in the early 1990s, supported it for Christmas as one of our new hollow PHOTO/ R.M. Palmer Co. in West Reading, was our loaned campaign specialist program innovations.” SUBMITTED founded by the late Richard M. Palmer Sr. in 1948. A native of Berks County, Palmer’s vision was to create holiday candy that not only tasted good but was fun as well. “The company has grown tremen- dously,” said Mark Schlott, executive vice president of operations and COO at the company today. “We’re now the fifth-largest chocolate manufacturer in the U.S.” R.M. Palmer’s first success, Baby Binks, are hollow Easter Bunnies with yellow and blue eyes.