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Month: September 2005

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Richard B. Collins, (center) President and Chief Executive Officer of United Financial Bancorp, Inc. presides over the closing bell ceremony at the NASDAQ market. Collins and other executives from United Financial Bancorp participated in the NASDAQ closing ceremony in New York City to celebrate the company’s initial public offering in July. Photo courtesy of NASDAQ Stock Market.

State Sen. Brian Lees (R-East Longmeadow) speaks to attendees at the annual Senior Citizens Forum held at Western New England College in August. Lees stages the event each year to bring resources and information to the senior citizens of Western Mass.; hundreds of elder care, human services, health care, and community organizations were on hand at the forum.

The Orlando Magic’s Grant Hill, next to a commemorative locker that will be placed in the Basketball Hall of Fame, answers questions about his career and the game of basketball at the Hall earlier this summer. Hill visited the Hall to donate pieces from his personal art collection, in an ongoing effort to bring fine art to a greater audience.

Hill speaks to an audience at the Naismith Basketball Hall of Fame as Hall of Fame President John Doleva looks on.

Internet service providers

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Provider Contact Charges Services
Ashton Services
1 Federal St., Bldg. 101, Springfield, MA 01105
(413) 746-9661;www.ashtonservices.com		 David Flaherty $165/quarter Web-site hosting for commercial accounts Hosting services include dial-up, DNS, E-mail accounts, and
automated site registration; real-time statistics are also available; T3 lines
BerkshireNet
126 Fenn St., Pittsfield, MA 01201 (413) 442-7805;www.berkshire.net		 Michael Bathrick $19.95/month standard dial-up;one-time $19.95 set-up fee Dial-up locations throughout Mass. and N.H.;multiple phone lines; full-time system administrator
Choice One Communications
1 Federal St., Bldg. 111, Springfield, MA 01105
(413) 732-6336;www.choiceonecom.com		 N/A $19.95/month dial-up Dedicated Internet access; dedicated DSL; fractional and T1access; speeds from 128k to 1.54 megabytes; serving the (413) Greater Springfield area
Conversent Communications
1441 Main St., Springfield, MA 01103 (413) 732-5088;www.conversent.com		 Nicholas Capman $19.95/month standard dial-up Basic business lines; Centrex; local and long distance plus DSL; Web hosting and E-mail; 24/7 supervision through operations
center
Create-A-Website
P.O. Box 993, Wilbraham, MA 01095 (413) 596-4321;www.createawebsite.net		 Jim DeForest Web-site hosting starts at $14.95;
all other services are priced based
on content		 Full-service Web site company; design, hosting, E-commerce, database, and marketing solutions
Crocker Communications
P.O. Box 710, Greenfield, MA 01302 (413) 772-1800;www.crocker.com		 James Crocker Accounts start at $9.95/month;
corporate accounts assessed and
quoted through free consultation		 Full-service provider with local dial-up; electronic commerce;
high-speed DSL connections; T1 service; 33.6k & 56k modems;
frame relay; ISDN networking security; intranet/internet
Eclectechs
26 Market St., Northampton, MA 01060 (413) 584-8600;www.eclectechs.com		 Victoria White $18/month unlimited access;
no hook-up fee		 56k dial-up access; full-time connections; ISDN; free unlimited
tech support; nationwide service; high ratio of lines
per user; Web hosting
Excell.Net
P.O. Box 983, Wilbraham, MA 01095-0983 (413) 525-0770;www.excell.net		 Patricia Shaw As low as $12.50/month for
personal account; $15 and up
for domain, Web hosting		 Full-service Internet service provider; dialup access; DSL;
Web site design; Web site hosting
HGE.net 998 Suffolk St., Holyoke, MA 01040 (413) 536-9444;www.hge.net Todd Taupier Rates start at $125/month High-speed fiber optic internet access; T-1, frame relay, metropolitan wireless internet
Lightship Telecom 583 East Columbus Ave., Springfield, MA 01105 (877) 548-7447;www.lightship.net John Johnston Free E-mail and Web hosting;
dedicated Internet priced by client solution ing services; E-mail services; voice mail		 Products include dedicated high-speed digital Internet services;
telephone service; integrated digital T1s; frame relay services; digital DID service; PRI service with DID and DNIS; Web host-
MAP Internet Inc.
One Federal St., Springfield, MA 01105 (413) 788-2000;www.map.com		 Mark Morgan $19.95/month unlimited access; $19.95/month ISDN Full-service Internet provider; 33.6k and 56k dial-up access;
frame relay; dedicated ISDN; Web hosting for individuals
or businesses; tech support; DSL
MicroTest
104 Gold St., Agawam, MA 01001 (413) 786-1680;www.mtlinternet.com		 Tony Douglas Customized with each customer’s needs Domain registration; Web design; E-commerce; routine Web updates; full-site programming capabilities; CD business cards;
CGI script; Web hosting; full Web maintenance and manage- ment; E-mail support; search engine registration & optimization

Rubberneck.Net P.O. Box 21, Northampton, MA 01061 (413) 527-8520;www.rubberneck.net

 Jeff Mackler Hosting & E-mail services starting at
$150/year; development & mainten-
ance services starting at $50/hour		 Web-site development, graphic design, hosting, marketing; spe- cialize in small- and medium-business sites, database develop-
ment, shopping carts; discounted rates for non-profits & startups
SAMnet
2785 Boston Road, Wilbraham, MA 01095 (413) 596-2050;www.samnet.net		 Tony Iannarelli $19.95/month standard dialup;
$25/month standard hosting;
high-speed DSL starting at $40		 Dialup; DSL; T1s; Web site design; Web site hosting
Skytech Communications Inc.
20 Maple St., Springfield, MA 01103 (413) 731-5500; Fax: (413) 737-9222 Web site:www.skytechinfo.com		 Mike Dod Customized for the needs of each business Providers of wireless, Internet, and broadband services; servicing the Greater Springfield area
Springfield Web Design
340 Cooley St., #303, Springfield, MA 01128
(413) 297-2522www.springfieldwebdesign.com		 Chris Marion Priced according to customer’s needs, with hosting starting as low as $10/month Web design; E-commerce; graphics; hosting; E-mail; full range
of creative services
Thelix Internet
401 Main St., Amherst, MA 01004 (413) 253-7700;www.thelix.net		 Nicole Perron Basic E-mail and Web-site hosting
starting at $24/month. Corporate
E-mail systems and Web site hosting
starting at $24/month		 Web hosting, design, development, and security with custom-
ized support services; Internet presence provider from standard
Web sites to large-scale Internet operations such as corporate
E-mail systems and dedicated servers; DIY packages available
Tortus Tek
1686 Riverdale St., W. Springfield, MA 01089
(413) 788-5080;www.tortus.com		 Larri Cochran Business connection $25/month;
residential connection $12.99/month		 Design; connectivity; hosting; end-to-end solutions; Web hosting available
Togather LLC
51 Summit Ave., Longmeadow MA 01106 (413) 364-1224;www.togather.com		 Len Bertelli Based on system and data bandwidth Standard and custom business systems with services to centralize data; collect and merge data from multiple offices, manage inventory; automatically updates Web sites

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A Passion for the Job · and the Community

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Sections Supplements
Rick Sullivan Takes the Long View as Westfield’s CEO
Westfield Mayor Richard Sullivan, with a dozen years at the helm and a seventh two-year term set to start in January, is among the longest-serving municipal CEOs in the Commonwealth. He told BusinessWest that he owes his longevity — and his track record for success — to a deep commitment to the job and the community in which he grew up.

When Rick Sullivan first ran for mayor of Westfield in 1993, he never dreamed he would be at the job for six terms — with a seventh set to start in January (he’s running unopposed this November).

“I remember the discussions we had back then,” he said, referring to talks with his wife, Lisa, and other family members. “The plan was to run, and if we were lucky enough to win that race, to look at a second term and then that would be it, because you can’t really change much in two years.”

No, but you can in a dozen, and Sullivan has a lengthy list of accomplished goals to mark his tenure at City Hall, starting with his desire to improve the school system that he and Lisa believed had declined from the days when they shared classes at Westfield High School.

In a wide-ranging Q&A session, Sullivan, now the dean of mayors in the Pioneer Valley and one of the longest-serving chief executives in the state, talks about his passion for the city he grew up in, his accomplishments, and the work still left to do.
In the course of doing so, he weighs in on everything from the qualities that make an effective mayor — “you have to know how to really listen, and not just take up a chair in the room” — to Gov. Mitt Romney’s policies and practices — “he has no respect for the operation of municipal government and what local officials and public servants do in order to provide services that impact people’s lives on a daily basis.

BusinessWest: You said you had no intention of serving for mayor as long as you have. What keeps you in what many people would consider a difficult, often thankless job?

Sullivan: “I could have embarked on some things that were certainly more lucrative financially, but it’s really very satisfying to be in service to a community and look back and say, ‘we made a difference.’ And we is everyone who works here (City Hall) and also my family, who made a lot of sacrifices over the years.

“Let’s just say that I have a passion for the this community, and also for the practice of government.”

BusinessWest: How long do you want to keep doing this?

Sullivan: “We take it two years at a time; that’s how we’ve always approached it. Two years from now we’ll assess where we are professionally and personally.”

BusinessWest: What makes someone an effective chief executive in a city like Westfield, or any community?

Sullivan: “You have to be visible, and you need to be able to listen well. And you must have a lot of patience.

“Being visible is a crucial element. I don’t have things going on every night, but most nights — and many weekends — there’s some event I need to be at, and I try to be at as many as possible. Why? Because it’s important when a church has its annual festival, and it’s important when a classroom of students wants to learn about civics first-hand. Local government is the most personal form of government there is.”

“I could have embarked on some things that were certainly more lucrative financially, but it’s really very satisfying to be in service to a community and look back and say, ‘we made a difference.’ And we is everyone who works here and also my family, who made a lot of sacrifices over the years.

BusinessWest: How do you approach the job of being the city’s chief executive? In other words, describe your management style?

Sullivan: “The most important thing is to be honest people; don’t tell them that you can get something done tomorrow when you know you can’t; I’d rather give someone all the information they need, even if it’s something they don’t want to hear.

“One of the first people I talked with after I got elected was Carol Mazza (publisher of the city’s daily newspaper). She said that the hardest thing I was going to face — and I think her exact words were that she was worried about whether I could do it or not — was the fact that I was going to have to say ‘no’ a lot more than I could ‘yes.’
“I think about that a lot, because she was right; even though this is a $100-plus million corporation known as the city of Westfield, and that’s a lot of money, it’s not enough to do everything you want to do or that everyone wants to see done; you have to live with having to say ‘no,’ and understand that it’s part of the job.”

BusinessWest: Let’s shift gears and talk about the challenges facing Westfield and all communities. The state’s budget situation is improving, but cities still seem to be struggling fiscally. What are the primary challenges?

“I think our basic mission has been to achieve economic diversity, and this goes back to what I was saying earlier about funding basic services. No community should be dependent on one big employer or even one industry group.

Sullivan: “The biggest one, plain and simple, is providing basic services when you’re limited to the regressive property tax. So I think there has to be recognition at the state level that there must be another way to fund these programs, because you can’t keep going back and having the cost of property taxes and other services at the local level become so expensive that people can’t afford to live here

“Take schools for example; the cost of education is always a concern. Everyone wants better MCAS scores, better achievement, and more accountability through the school system in terms of how they are spending each dollar and getting the absolute best product that we can. But you also need to have the ability to pay for those things. That is going to be an ongoing problem for communities now.”

BusinessWest: Do you see the state — and specifically the Romney administration — responding to this situation in the way that you and other mayors would like?

Sullivan: “No.
“I don’t think there’s an appreciation for what cities are towns are facing. He (Romney) keeps talking about how he hasn’t raised taxes. In fact, what he’s done is shift all the burden back to the local communities. And in those communities, the biggest share of that has to be picked up by property taxes, and it often falls on the backs of people on fixed income, those who work two jobs, and others who are struggling to make ends meet.

“There’s a real disconnect between his policies and how they’re impacting people in our cities and towns.”

BusinessWest: How is Westfield, and the region as a whole, impacted by the many challenges facing Springfield, the capital, if you will, of Western Mass.?

Sullivan: “We see and feel it a number of ways. For example, we see it with teachers, police officers, firefighters, and other municipal servants who are leaving Springfield and trying to come over here. They see this as a much more stable environment. In some ways, that’s good, because it allows communities like Westfield to hire the best and the brightest. But this will be a real hardship on Springfield, and it will be a long time before that city recovers, because it will also be a long time before people there believe that’s a stable community.

“As for the importance of a healthy Springfield, of course that’s important to the entire region. But I’ve always been a firm believer that, while we need a healthy Springfield, we also need a healthy Holyoke, a healthy Easthampton, and a healthy Westfield; we’re in a regional economy; there are no walls around any of those communities.

BusinessWest: Let’s talk about that regional economy for a minute. Regionalism is the main goal of the Economic Development Corporation. Is this approach working?

Sullivan: “It is. Even before the formation of the EDC, area mayors were getting together on a fairly regular basis; there was Chris Johnson in Agawam, Rich Kos in Chicopee, Mike Albano in Springfield … we were working toward taking a more regional approach then, looking at the bigger picture and not thinking parochially.”

BusinessWest: There were some turf wars in the ’90s, like the competition between Westfield and Northampton for a Coca Cola bottling facility. That was a fight, if you can call it that, which Westfield lost; were there lessons learned from it?

Sullivan: “That episode went a long way toward changing some attitudes; we learned that pitting one community against another like that is not healthy for the region. I can’t tell you that we weren’t disappointed that Coke didn’t come here, because we were. But that whole thing showed us that we shouldn’t be doing things at the expense of Northampton, and vice versa.

“We will always try to be competitive when someone is looking to move into the area, but we can’t let companies leverage one community against another. What I learned from the Coke saga was that I don’t want my competitor to be Holyoke, Chicopee, Northampton, or Springfield; when Mike Sullivan in Holyoke has a chance to bring in a new business, that’s good for us and for the whole region — we need a healthy Holyoke.”

BusinessWest: Can you describe your administration’s main economic development strategy for Westfield?

Sullivan: “I think our basic mission has been to achieve economic diversity, and this goes back to what I was saying earlier about funding basic services. No community should be dependent on one big employer or even one industry group. Who would have thought that GE would leave Pittsfield or that Digital would be gone from Westfield? And recently, we’ve seen many large businesses leave the Palmer area and move south. If you’re relying on one employer or one sector, your local economy is put in jeopardy.

“So we’ve spent a lot of time and energy here working on achieving that diversity. We still have a backbone of strong manufacturers — our tool and die base is the unnoticed foundation of that sector, but we have other kinds of manufacturers as well — and we have a commercial base and a retail sector we’re trying to expand. You need to watch that mix all the time.

“If you look at Westfield’s 10 biggest taxpayers and employers, they’re all either new in the past 10 years or have done some significant expansion in that time. And when you have discussions with rating agencies on Wall Street in terms of what your bond rating is, these are the things they look at; they look to see if you’re economy is diversified and they ask how your 10 or 20 largest employers are doing. And there is a direct correlation between those things and the rating you receive.

BusinessWest: Downtown remains perhaps the one area that has escaped the progress seen across the rest of the city. What does the future hold for that area?

Sullivan: “I’ve said for years that the only thing that doesn’t reflect our economic healthiness is downtown, but I firmly believe that will change in the years ahead. We’ve already seeen some significant improvement with several new restaurants and clubs, and there will be more.

“We have a $50 million public works project set to start (a second bridge over the Westfield River in the downtown area) and a $20 million hotel project that’s moving forward; these developments will produce some dramatic changes in our downtown.”

BusinessWest: Beyond the many aspects of downtown revitalization, are there are any other major goals for the future?

Sullivan: “Only to simply continue what we’ve been doing — listening to people
and trying to make this a better community.

“I remember what my dad said after we won that first election for mayor and came to
see the office for the first time; he said, ‘don’t forget where you came from.’ I wasn’t born here, but in my mind, I came from Westfield, and I have never forgotten that.” ?

George O’Brien can be reached at[email protected]

Current Events

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Sections Supplements
WSC Shapes Plans for a Westfield River Environmental Center
It’s called the Hemlock Wooley Adelgid.
That’s the name of a small, non-native species of insect that is currently attacking hemlock forests in the Northeast. It apparently arrived in this country via some wood delivered to New Jersey from China two decades ago, and has been slowly making its way north.

Tim Parshall, a professor of Biology at Westfield State College, isn’t sure if the intruder can survive in the climate and elevation of the Westfield River Watershed — and thus pose a threat to the old growth Hemlock forests there — but he wants to find out.

And his efforts to determine the extent of the insect’s presence in the watershed, and the prospects for the future, will be one of the first initiatives launched by a new venture taking shape at the college called the Westfield River Environmental Center.
Blueprinted by Environmental Science, Biology, Physical Science, and Regional Planning professors at the college, the center, in its first phase, would bring together existing faculty and programmatic strengths on the campus to create an integrated, field-based science and education program focused within the Watershed.

“The school is in a very unique setting, at the foot of several mountains and near the Westfield River,” said Michael Vorwerk, an Environmental Science professor at WSC. “It provides us with some very unique opportunities.”

To take advantage of them, the group applied for — and received — funds from a new program at the college created by President Vicky Carwein called I3: That’s short for Initiate, Innovate, and Inspire, a $200,000 fund designed specifically for programs that will enhance community involvement and raise the college’s profile in the region — while also involving students at all levels in real-world issues and concerns.

Like the Hemlock Wooley Adelgid.
“That’s just one example of how we want to involve our students, our faculty, and the community in maintaining the health and beauty of the watershed,” said Vorwerk, who told BusinessWest that the initiative includes a number of educational components involving college and K-12 students.

Down to a Science

Parshall told BusinessWest that, in the world of academia, the word center often connotes not a building or a wing, but a coordinated research effort.

Such is the case with the Westfield River Environmental Center, which may someday have a mailing address, but for now is a collection of initiatives focused on the area in and around the watershed, a largely undeveloped ecosystem whose namesake river is nationally designated as “Wild and Scenic.”

WSC’s location only a few hundred yards from the river (the school actually owns land on the river’s bank) and across the street from Stanley Park puts it in a unique position to promote research on the watershed and inspire (that’s one of those I’s) advancements in the teaching — and learning — of science.

This was the thesis of the grant proposal written by a group of science and regional planning professors, whose proposal won the respect of a review committee — and a $50,000 grant from the I3 program.

“The project will both create and fill a niche that other Massachusetts college cannot offer: the opportunity for hands-on learning in a unique natural setting,” the group wrote in its application. “The program would provide a learning laboratory for students studying in all areas of science, extending to K-12 programs in the region.

urthermore, WSC’s location at the juncture of urban and rural communities provides a unique opportunity for the college to serve as a forum for dialogue among the watershed’s diverse stakeholders.”

In the project’s second phase, said Vorwerk, organizers would move forward with development of a permanent environmental center at the college that would include many other academic disciplines such as History, English, Economics, and Communications.

For now, the center is focused on a series of broad initiatives that fall under the categories of science, education, and outreach. These include strengthening the current science curriculum at WSC by encouraging both field and laboratory environmental studies; facilitating collaboration on region-wide environmental studies; and offering opportunities for K-12 teachers, students, and the community.

Specific goals include:

  • Developing goals for student and faculty research in the watershed;
  • Developing and encouraging the use of field locations for education and research, beginning with WSC holdings and Stanley Park;
  • Strengthening existing courses in Geographic Information Systems (GIS) and developing new courses with specific environmental science applications;
  • Coordinating a community working group, comprised of faculty, students, and members of non-profit, governmental, and community organizations;
  • Initiating and strengthening ties with community partners to develop collaborative regional ecosystem studies, focusing initially on the Westfield River Watershed;
  • Coordinating an education working group, comprised of faculty, students, K-12 teachers and administrators;
  • Developing internship and other learning opportunities for WSC education students to work with regional community and governmental organizations.

Meanwhile, there are a few research projects planned or already underway. One involves the Hemlock Wooley Adelgid, said Parshall, noting that an Environmental Science student at the college has expressed interest in researching the insect’s penetration into the watershed.

“It’s just starting to get a foothold there,” he said. “We think the watershed, which reaches into the Berkshires, represents the edge of insect’s ability to live and survive through the winter; we have a student interested in identifying where the adelgid lives, how common it is, and how fast it’s spreading.”

That project will be funded through the grant received from the I3 program, said Parshall, as will several other initiatives now in the planning stages. These include research on a another invasive species, something called Canary Reed Grass, which has gotten a foothold in marshy, wet areas within the watershed, including Stanley Park, and changing the habitats there. It is a real threat, for example, to Cat Tails. A professor at the college has already received a grant to study the intruder, and is currently enlisting student support for that work.

Another project due to be undertaken soon is a trail-mapping initiative, said Vorwerk, who told BusinessWest that this venture, as well as those involving the reed grass and the adelgid, researchers will be encouraged to employ GIS, which can be used to map trails or the territorial expansion of insects.

“This is a technology that’s important to understand, especially if you’re interested in environmental science, but in many other disciplines as well.”

Progress — Naturally

Developing new and effective uses of GIS is one of many goals of the emerging environmental center, said Vorwerk, noting that he and others involved with the venture expect it to evolve continually to meet the changing needs of students, educators, and area non-profit groups that are invested in the watershed.

And it will adjust as new issues — and new invasive species — arise in the ecosystem. That setting provides myriad opportunities for those who wish to study science and preserve the fragile environment, and the center will help the college — and the community — maximize those opportunities.

Looking Sharp

By
Bill Heisner
Sections Supplements
American Saw Sinks its Teeth into Aggressive Growth Strategies
Bill Heisner

Bill Heisner displays a torpedo level, one of many new products that will carry the Lenox name.

American Saw & Mfg. Co in East Longmeadow is marking its 90th birthday this year. While that milestone — and the company’s proud history — are cause for celebration, new president Bob Heisner has his focus on the future, which promises continued new-product development, expansion into new markets, and ever more aggressive efforts to leverage the company’s well-respected brand: Lenox

Indeed, Lenox American Saw, which already sells products in more than two dozen countries, is looking to increase its presence in Europe and Asia, especially China.
“We’re not looking to make products in China,” said Heisner, noting quickly that the company does, in fact, manufacture some lines there already. “We want to sell products in China.

“They’re cutting a lot of steel there,” he continued, referring to both China’s dizzying growth curve and one of American Saw’s main niches — blades that can cut steel quickly and cost-effectively. “China holds a lot of opportunities for us.”

BusinessWest looks this issue at how the East Longmeadow-based company’s new president will approach the task of capitalizing on those opportunities and thus remain a cut above the competition.

Cutting-edge Developments

Heisner was promoted to his new post from the position of vice president of marketing for American Saw, what he called “the easiest job in the world.”
He was exaggerating, of course, but also making a point about the quality of the company’s products and their reputation within the industry.

“We’ve always said that if we could put our products in people’s hands, then they were sold on them,” he explained, noting that this was true across the company’s three main product lines: band saw blades, power tool accessories, and hand tools. “It was my job to get those products into people’s hands, plain and simple.”

That assignment remains part of his overall job description, but he also has a bigger, broader responsibility — picking up where his predecessor Bill Burke, now head of Rubbermaid’s tool division, left off in the drive toward the company’s stated goal of growing sales (currently around to $250 million) to the $500 million mark by 2008.
Only now, that target has actually moved to a loftier number. “Our CEO is upping the ante,” said Heisner. “He wants us to get to $1 billion.”

To get there, the company will take a multi-faceted approach that includes new-product development, continued improvement to existing products, and cultivation of new markets in which to sell those items.

Leading those efforts will be Heisner, who, like Burke, spent many years developing a competitive admiration for the Lenox brand while working for one of American Saw’s main hand tool rivals — Baltimore-based Black & Decker.

There, he worked in marketing and new-product development for several years. In 2001, he joined Danaher Tool Corp. as vice president of marketing for its Hennessy Tools division, and two years later accepted Burke’s invitation to join the team at American Saw.

Like Burke before him, Heisner told BusinessWest that what attracted Rubbermaid to American Saw (and pay $450 million for the then-family owned company) was the Lenox brand, which has a strong reputation among end users for quality and dependability.

So much so, that, while the name American Saw & Mfg. is still used in Western Mass., where it has considerable equity, outside the area, the company is known as Lenox.

“Here, if you say ‘American Saw’ or simply ‘The Saw,’ everyone knows what you’re talking about,” he said. “Get outside this market, though, and that name means nothing to them. They know the name Lenox.”

And Heisner’s current priority is to put that name on a wider range of products, but without compromising what he says that name means to professionals.

As he talked about new-product development, Heisner reached over to a table next to his desk and picked up a multi-purpose screwdriver, or an ‘all-in-one, as its known. This is an indispensable tool for many of tradesmen, including plumbers, electricians, and HVAC technicians, but a product that never carried the Lenox name and signature wolf logo — until recently.

“We made a promise when we (Rubbermaid) came here that we swore we’d live by,” he explained. “And that was we’d only offer a product that has a demonstrable benefit. If we couldn’t come up with one, then we wouldn’t offer it as a Lenox product.”

By that, he referred to the difference between the Lenox brand and other tool and accessory brands the parent company sells, such as Irwin — a difference he compared to the disparity between a Mercedes and a Chevrolet.

“We could get to $500 million in one year, forget five, if we wanted to make Lenox more of a mass-market product as opposed to a premium product,” he explained. “We didn’t want to do that.

“What we want to do is take this brand and go like this,” he continued, spreading his hands apart, “because there’s a lot of things that plumbers, electricians, and others use that we don’t make but could — if we could create that demonstrable benefit.”

“We’re not looking to make products in China, we want to sell products in China.”

Looking for an Edge

In the case of the all-in-one, that benefit is a thicker wall for the nut-driver, which also doubles as a tube that holds the various screwdriver heads, said Heisner, noting that while conducting the five-gallon-bucket research he spoke of, the company’s R&D team noticed that the nut driver became quickly stripped on competitors’ models because that wall wasn’t thick enough.

“No one had ever done that before, and we’re not sure why,” he said of the seemingly simple innovation. “But that’s our demonstrable difference. And it’s a great example of how we were able to take something that had been out there forever and make it better — to make it good enough to carry the Lenox name.

“We’re maniacs when it comes to user research, and that’s what we did with the all-in-one,” he said. “We didn’t know if there was an opportunity to do something with this particular product; all we knew was that all our users, every single one of them, used one of these.”

The same type of detailed user research has led to other new products, said Heisner, including a torpedo level (another tool that nearly every tradesman carries) with several innovations and a circular saw blade manufactured in conjunction with a Japanese company. It has also spawned improvements to a number of traditional product lines, including band saw and reciprocating saw blades made with a recently developed coating that provides more durability and faster cutting.

Many of the company’s significant innovations move from the band saw blade line — the company’s single largest product segment — into other areas, said Heisner, noting that this was the case with the new coating.

“It’s all about heat — if you can eliminate heat, you can make a much better blade. This coating product dissipates the heat and protects the tooth, so you create a blade that lasts much longer,” he said, noting that the company’s new Armor line of products has been extended from band saw blades to reciprocating saw blades and other lines.

The new-product development initiatives are having a demonstrable difference on American Saw’s bottom line, said Heisner, noting that the company has set several sales records this year and has matched three straight years of double-digit growth — and also in the nature of those sales.

Indeed, while sales of new products (a category reserved for those within three years of initial introduction) have historically accounted for about 5% of total volume, this year, that number is nearly 20%.

“And we want to continue to move that figure higher,” Heisner told BusinessWest. “World class is 30%, and we want to be there within 18 months.”

While working to introduce new products and improve traditional lines, American Saw is also working toward expanding its geographical reach, said Heisner, noting that by this he meant developing new and stronger markets in many of the countries where the company already has a presence.

“Normally, when people talk about China, they’re referring to taking their manufacturing over to China to support the U.S.,” he explained. “We’re doing the opposite; we want to support China with manufacturing here.

“The market in China is exploding, and we have lots of innovative products, starting with band saw blades.” he continued. “That’s half our business — making products that turn big pieces of steel into smaller pieces of steel, and no one is cutting more steel right now than the Chinese.”

The keys to penetrating new markets, and also improving sales in existing markets, are continued R&D, or ‘user research,’ as Heisner called it, and efforts to put the company’s products in front of people and actually in their hands.

Which is why the schedule has become much more crowded for the employee known simply as “Hack Man.”

Lee Breton, a 35-year American Saw employee, started cutting cars in half with reciprocating saws armed with Lenox blades in 1981. He eventually moved on to tanker trucks, airplanes, and anything else that could demonstrate the product’s quality and efficiency. (He recently set a personal best by ripping through a car in less than a minute).

Today, there is something called “Team Hack Man,” said Heisner, noting that Breton now has some help, and will use it to take the schedule of car-cutting events from 20 (the average for the past several years) to more than 200 for 2005.

“That’s quite a show they put on,” Heisner said of the Hack Man team, which appears across the country and overseas. “When you cut in half that fast, you get users to take a look at your products. And once they start using them, they’re sold.”

Drill Formation

Summing up the broad strategy for American Saw in the years to come, Heisner said it comes down to one word: relevance.

By that, he meant that the company and its Lenox brand plan to enter into more product lines — items as simple as an all-in-one screwdriver — and thus greatly expand its reach in terms of visibility and, more importantly, sales.

“We want to move into a bigger room,” he said, noting that the company and its
R&D teams will continually look for ways to bring demonstrable benefits to the people who use blades, hand tools, and power tool accessories.

And for that, they will need more of that five-gallon-bucket research.?

George O’Brien can be reached at[email protected]

By
Departments

Global Business, Global Risks

Sept. 27: TD Banknorth Insurance will host a free luncheon seminar, Global Business, Global Risks, from 11:45 a.m. to 1 p.m. at its offices at 2077 Roosevelt Ave. in Springfield. The featured speaker will be Kim Finlay, CPCU, Are, New England international manager for ACE USA. The presentation will guide businesses through the need for international insurance, international exposure identification, the basic international coverages, and tips for choosing an international carrier. For more information, call (413) 750-4438.

School Law Seminar

Sept. 28: The South Hadley-based Sheridan law Offices, L.L.C. will host a seminar focusing on the latest developments in School Law. The program, slated for 8:30 a.m. to 1:30 p.m. at the Hotel Northampton, is ideal for superintendents and assistants, business managers, principals, and other school officials. The event will feature a case law update, and such specific topics as: ‘what constitutes due diligence in hiring teachers and educational staff’, ‘reporting teacher misconduct to the Department of Education — what is the obligation of the school district?’ and others. Cost of the program is $120 per person. For more information, call (413) 536-8523.

Branding Symposium

Nov. 1: The strategic identity firm Bidwell ID and the Mass. Small Business Development Center Network will convene panelists from diverse sectors encompassing the arts, business, education, and health, to examine the
elements of effective branding at a program at the Eric Carle Museum of Picture Book Art. The event, called brandnew 2005, will be staged from 8:30 a.m. to noon. The program will feature several local case studies in branding and a panel of experts who will put questions to those business owners. The case studies will include Amherst College, The Eric Carle Museum, the Amherst Nursing Home, Banana Publishing, and Cooley Dickinson Hospital’s Way Cooley
brand of coffee. The expert panelists will be Lee Phenner, vice president of Hill Holiday Design in Boston, Cheri Cross, partner and communications professional with Slate Roof Studio, and Rick DeBonis, senior vice president and director of Marketing for Hampden Bank. Cost of the program is $35 per person. For more information, visit www.brandnew2005.com

By
Departments

The following bankruptcy petitions were recently filed in U.S. Bankruptcy Court. Readers should confirm all information with the court.

Adams, Jon G.
Adams, Maureen
38 Walnut St.
Northampton, MA 01060
Chapter: 7
Filing Date: 08/11/05

Albano, Mariarosaria
42 Maryland St.
Springfield, MA 01108
Chapter: 7
Filing Date: 08/04/05

Allyn, Jonathan G.
43 Downing Ave.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/12/05

Anderson, Martin R.
Anderson, Lori A.
4 Greenwood St.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/02/05

Atwood, Thomas E.
Atwood, Barbara L.
50 Day Ave.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/11/05

Baker, Teague Alan
Baker, Lisa Marie
2 Rockvalley Road
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/14/05

Basile, Michael A.
139 Glynn Farms Dr.
East Longmeadow, MA 01028
Chapter: 7
Filing Date: 08/09/05

Beaver, Marjorie I.
52 Queen Ave.
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/07/05

Bielski, Richard J.
Bielski, Karen L.
21 Sunnyside St.
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/02/05

Bisbee, Jo Anne
106 Rolling Green
Amherst, MA 01002
Chapter: 7
Filing Date: 08/07/05

Blair, Kenneth C.
Blair, Laurie P.
44 South St.
Easthampton, MA 01027
Chapter: 7
Filing Date: 08/14/05

Blanchet, Patricia K.
1 North Kellogg Road
P.O. Box 144
Williamsburg, MA 01096
Chapter: 7
Filing Date: 08/08/05

Boudreau, Arthur A.
Boudreau, Shirley M.
8 Gunn Road Ext.
Southampton, MA 01073
Chapter: 7
Filing Date: 08/11/05

Brown, William H.
351 Pleasant St.
Northampton, MA 01060
Chapter: 7
Filing Date: 08/08/05

Burkhard, Michael J.
771 Parker St.
East Longmeadow, MA 01028
Chapter: 7
Filing Date: 08/02/05

Butterfield, Lexia Lynette
121 North Main St.
Belchertown, MA 01007
Chapter: 7
Filing Date: 08/03/05

Canteenwalla, Ferdauz N.
Canteenwalla, Alice M.
45 Willow St., Apt. 54
Springfield, MA 01103
Chapter: 7
Filing Date: 08/08/05

Carpenter, Charlise Marie
21 Alvord Place
South Hadley, MA 01075
Chapter: 7
Filing Date: 08/03/05

Cecchetelli, Joseph A.
34 Church St.
Agawam, MA 01001
Chapter: 7
Filing Date: 08/02/05

Champagne, Michael L.
137 Hanson Dr.
Springfield, MA 01128
Chapter: 7
Filing Date: 08/11/05

Claudio, Carmelo
298 Oakland St., Apt. 7
Springfield, MA 01108
Chapter: 7
Filing Date: 08/03/05

Colly, Christopher Todd
Colly, Christa Leigh
72 North Main St.
Florence, MA 01062
Chapter: 7
Filing Date: 08/14/05

Colon, Jacob Matthew
607 Beech St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/14/05

Corkum, Russell S.
71 Northwood Ave.
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/02/05

Cornelius, Gwendolyn Crocker
14 Pinewood Lane
Westfield, MA 01085
Chapter: 7
Filing Date: 08/07/05

Cortes, Erick M.
48 Blodgett St.
Springfield, MA 01108
Chapter: 7
Filing Date: 08/04/05

Crosby, Fred T.
Crosby, Kathy L
157 Goodwin St.
Indian Orchard, MA 01151
Chapter: 7
Filing Date: 08/04/05

Cust, Francesca B.
64 Hillside Dr.
Springfield, MA 01118
Chapter: 7
Filing Date: 08/02/05

Damkauskas, Lou C.
PO Box 8022
Westfield, MA 01086
Chapter: 7
Filing Date: 08/02/05

Davignon, Tiffany D.
214 East Guinea Road
Williamsburg, MA 01096
Chapter: 7
Filing Date: 08/08/05

DeGeorge, Gary R.
401 Blisswood Dr.
Ludlow, MA 01056
Chapter: 13
Filing Date: 08/02/05

Drug Assist Health Solutions, Inc.
26 Fort Pleasant Ave.
Springfield, MA 01108
Chapter: 11
Filing Date: 08/10/05

Dudley, Leonard C.
140 Woodlawn St.
Springfield, MA 01108
Chapter: 13
Filing Date: 08/02/05

Dunigan, Kelly M
P.O. Box 745
Chicopee, MA 01021
Chapter: 7
Filing Date: 08/12/05

Dwight, Jeanne W
PO Box 571
Leeds, MA 01053
Chapter: 7
Filing Date: 08/09/05

Everett, Stephanie A.
17 George Loomis Road
Southwick, MA 01077
Chapter: 7
Filing Date: 08/11/05

Ferreira, Stephen J.
170 Acrebrook Road
Springfield, MA 01129
Chapter: 7
Filing Date: 08/05/05

Ferrington, Dave
Ferrington, Lisa
370 Mill Valley Road
Belchertown, MA 01007
Chapter: 7
Filing Date: 08/08/05

Foster, Karen R.
106 Edgemont St.
Springfield, MA 01109
Chapter: 7
Filing Date: 08/09/05

Gailpeau, Jason Paul
135 Meadow St.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/01/05

Gaines, Edmund P.
P.O. Box 464
Granby, MA 01033
Chapter: 7
Filing Date: 08/13/05

Gallant, April Bella
57 High St.
Agawam, MA 01001
Chapter: 7
Filing Date: 08/11/05

Goldrup, James L.
159 Kerry Dr.
Springfield, MA 01118
Chapter: 7
Filing Date: 08/12/05

Gordon, Lisa M.
1007 River Road
Agawam, MA 01001
Chapter: 7
Filing Date: 08/05/05

Greenwood, Edward J.
65 Craig Dr., Apt. P4
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/02/05

Grimes, Steven D.
Grimes, Deborah A.
25 Gerrard Ave.
Springfield, MA 01109
Chapter: 7
Filing Date: 08/15/05

Guadeloupe, Heather S.
87 Fenwick St.
Springfield, MA 01109
Chapter: 7
Filing Date: 08/15/05

Guerin, Robert L.
Guerin, Laura I.
45 Schuyler Dr.
East Longmeadow, MA 01028
Chapter: 7
Filing Date: 08/01/05

Hebert-Voudren, Michelle J.
29 Brentwood Dr.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/08/05

Hirschhaut, Robert J.
91 Sumner Ave., Apt. 1
Springfield, MA 01108
Chapter: 7
Filing Date: 08/09/05

Holesovsky, Thomas John
Holesovsky, Gretchen Muriel
32 Park St.
Belchertown, MA 01007
Chapter: 7
Filing Date: 08/13/05

Hughes, Michael Christopher
53 Olmsted Dr.
Springfield, MA 01108
Chapter: 7
Filing Date: 08/12/05

Januszewski, Tadeusz
4 Manhan St.
Southampton, MA 01073
Chapter: 7
Filing Date: 08/11/05

Jaycox, William Hector
Jaycox, Diane Marie
1546 Westover Road
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/07/05

Johnson, Oscar L.
71 Ely St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/15/05

Josefiak, Deborah M
256 Newhouse St.
Springfield, MA 01118
Chapter: 7
Filing Date: 08/07/05

Kamenides, Mark Peter
1134 Northampton St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/03/05

Keim, Rachel Colette
124 Chesterfield Road
Leeds, MA 01053
Chapter: 7
Filing Date: 08/09/05

Keough, Thomas H.
93 Grochmal Ave. #86
Indian Orchard, MA 01151
Chapter: 7
Filing Date: 08/02/05

Kerr, James Robert
51 Maple Ter.
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/11/05

Kibbe, Louise R
275 Regency Park Dr.
Agawam, MA 01001
Chapter: 7
Filing Date: 08/02/05

Kimball, Craig R.
20 Jackson St.
Belchertown, MA 01007
Chapter: 7
Filing Date: 08/07/05

Klein, Stephen Daniel
48 Sergeant Ave.
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/03/05

Kras, Jennifer R.
42 Townhouse Dr.
Easthampton, MA 01027
Chapter: 7
Filing Date: 08/08/05

LaPointe, Bryan Lee
LaPointe, Dawn Marie
47 Coleman St.
Springfield, MA 01109
Chapter: 7
Filing Date: 08/05/05

LaRusso, John J.
67 Corey Colonial
Agawam, MA 01001
Chapter: 7
Filing Date: 08/02/05

Lawler, Lucy S.
44 Bay State Road
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/11/05

Laxton, Carol Anne
44D Colonial Circle
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/05/05

Leary, Kevin M.
1080 Main St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/09/05

Leger, Todd W.
365 Grand Valley Road
Springfield, MA 01128
Chapter: 7
Filing Date: 08/12/05

Leidberg, Richard E.
Leidberg, Penelope H.
4B Arthur St.
Easthampton, MA 01027
Chapter: 7
Filing Date: 08/02/05

L’Heureux, John A.
49 Dakota Dr.
Chicopee, MA 01013
Chapter: 13
Filing Date: 08/04/05

Line, Peter C.
25 Joy St.
Ludlow, MA 01056
Chapter: 7
Filing Date: 08/12/05

Liptak, James Peter
124 Chesterfield Road
Leeds, MA 01053
Chapter: 7
Filing Date: 08/09/05

Lorenzo, Wilmari M.
59 Margaret St., Apt.
Springfield, MA 01105
Chapter: 7
Filing Date: 08/02/05

Lumpkin, Pamela A.
83 Chmura Road
Hadley, MA 01035
Chapter: 7
Filing Date: 08/15/05

Pinkney, April M.
34 Berkley St.
Springfield, MA 01109
Chapter: 13
Filing Date: 08/09/05

Pollard-Jordan, Laurie J
7 Country Club Dr.
Southwick, MA 01077
Chapter: 7
Filing Date: 08/10/05

Quinn, Jeannette E.
22 Belmont Ave.
Northampton, MA 01060
Chapter: 7
Filing Date: 08/08/05

Reid, Viola
93 Grochmal Ave.
Indian Orchard, MA 01151
Chapter: 7
Filing Date: 08/02/05

Robbins, Clifford R.
249 Westfield St.
West Springfield, MA 01089
Chapter: 7
Filing Date: 08/08/05

Roy, Russell K.C.
c/o Tara Boycher
129 King St.
Northampton, MA 01060
Chapter: 7
Filing Date: 08/02/05

Salvas, Cornelia B.
49 Eureka St.
Springfield, MA 01104
Chapter: 7
Filing Date: 08/12/05

Santos, Lawrence Neal
Santos, Angela Marie
15 Holyoke Road
Westfield, MA 01085
Chapter: 7
Filing Date: 08/07/05

Scarpa, Kelsey Danielle
273 Lyon St.
Ludlow, MA 01056
Chapter: 7
Filing Date: 08/14/05

Scott, Irene A.
11 Klondike Ave.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/08/05

Scroggins, Richard
P.O. Box 91456
Springfield, MA 01139
Chapter: 7
Filing Date: 08/12/05

Siegal, Audrey
29 Reed Ave.
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/02/05

Simpson, Diane G.
18 Knapp St.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/02/05

Smith, Susan
26 Sterling Road
Agawam, MA 01001
Chapter: 7
Filing Date: 08/08/05

Soler Mateo, Eiizabeth
83 Phillips Ave.
Springfield, MA 01119
Chapter: 7
Filing Date: 08/06/05

St. Andre, Irene S.
153 Theroux Dr.
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/11/05

Lund, Jon Eric
PO Box 509
Agawam, MA 01001
Chapter: 7
Filing Date: 08/07/05

Lynes, Robert W.
P.O. Box 552
South Hadley, MA 01075
Chapter: 7
Filing Date: 08/10/05

Maldonado, Antonia
42 1/2 Franklin St.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/09/05

Maldonado, Eugenia
64 Taylor St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/03/05

Markland, Megan Sarah
191 Moss Road
Springfield, MA 01119
Chapter: 7
Filing Date: 08/14/05

Marques, Rose M.
155 Prospect St.
Ludlow, MA 01056
Chapter: 7
Filing Date: 08/02/05

Mateo, Raymond
83 Phillips Ave.
Springfield, MA 01119
Chapter: 7
Filing Date: 08/06/05

Mayotte, Amy L.
85 Martin Farm Road
Hampden, MA 01036
Chapter: 7
Filing Date: 08/05/05

Medina, Celinamaria
8 Utica St.
Springfield, MA 01104
Chapter: 7
Filing Date: 08/11/05

Miller, Lionel S
19 Honey Pot Road
Southwick, MA 01077
Chapter: 7
Filing Date: 08/11/05

Missildine, James
41 Greenwich St.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/09/05

Montmeny, Robert W.
Montmeny, Susan M.
86 Brewster St.
Springfield, MA 01119
Chapter: 7
Filing Date: 08/08/05

Moore, James M.
Moore, Alice M.
27 Empress Court
Springfield, MA 01129
Chapter: 7
Filing Date: 08/02/05

Morris, David G.
Morris, Mary Louise
21 West Glen St.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/12/05

Morrisino, Paul A.
Morrisino, Laura P.
37 Michel St.
East Longmeadow, MA 01028
Chapter: 7
Filing Date: 08/04/05

Nadeau, Janet A.
19 Columbus Ave.
Northampton, MA 01060
Chapter: 7
Filing Date: 08/08/05

Negron, Milagros
75 Balis St.
Springfield, MA 01109
Chapter: 13
Filing Date: 08/10/05

Nieves, Anibal
141 Phoenix Ter.
Springifeld, MA 01104
Chapter: 7
Filing Date: 08/11/05

Nowak, Michael E.
93 Harding St.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/02/05

Nunez, Iris V.
63 Central St. – Apt A
Springfield, MA 01105
Chapter: 7
Filing Date: 08/09/05

Page, Stacey C.
40 DeRoy Dr.
Chicopee, MA 01020
Chapter: 7
Filing Date: 08/12/05

Paksi, Sandor
344 Belmont Ave.
Springfield, MA 01108
Chapter: 7
Filing Date: 08/13/05

Parent, Robert Daniel
92 Redden St.
Springfield, MA 01119
Chapter: 7
Filing Date: 08/04/05

Paton, Darcy Laine
1343 East Mountain Road
Westfield, MA 01085
Chapter: 7
Filing Date: 08/11/05

Paulson, Michael R.
124 Yeoman Ave.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/02/05

Pelletier, George Louis
33 Mattoon St., Apt G
Springfield, MA 01105
Chapter: 7
Filing Date: 08/07/05

Phillips, Bernice M.
41 Elmer Dr.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/03/05

St. John, Lynn A.
92 Fordham Ave.
Feeding Hills, MA 01030
Chapter: 7
Filing Date: 08/07/05

Stramaglia, Angela Nina
47 Broad St., # C-43
Westfield, MA 01085
Chapter: 7
Filing Date: 08/07/05

Susa, Thomas J.
444 Ventura St.
Ludlow, MA 01056
Chapter: 7
Filing Date: 08/04/05

Swartz, Paul E.
33 Orchard St.
Ludlow, MA 01056
Chapter: 7
Filing Date: 08/15/05

Swinton, Ronald
267 Talmadge Dr.
Springfield, MA 01118
Chapter: 7
Filing Date: 08/05/05

Szumowski, Marilyn A.
PO Box 16
Chicopee, MA 01014
Chapter: 7
Filing Date: 08/07/05

Thomas, Anita L
55 Nagel St.
Indian Orchard, MA 01151
Chapter: 7
Filing Date: 08/04/05

Thompson, Linda D
275 North Valley Road
Pelham, MA 01002
Chapter: 7
Filing Date: 08/10/05

Trudeau, Edward F.
Trudeau, Linda M.
30 Belvidere Ave.
Holyoke, MA 01040
Chapter: 7
Filing Date: 08/08/05

Veighey, William James
54 Newell St.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/03/05

Voudren, Donald F.
29 Brentwood Dr.
Westfield, MA 01085
Chapter: 7
Filing Date: 08/08/05

Walker, Leslie F.
93 Grochmal Ave.
Indian Orchard, MA 01151
Chapter: 7
Filing Date: 08/02/05

West, Edward T.
30 Circle Dr.
Chicopee, MA 01013
Chapter: 7
Filing Date: 08/10/05

Wheeler, Steven Christopher
26 Olmstead Dr., 2nd Floor
Springfield, MA 01108
Chapter: 7
Filing Date: 08/03/05

Wollmershauser, Joan M.
157 Cambridge St.
Feeding Hills, MA 01030
Chapter: 7
Filing Date: 08/03/05

Zeronda, Joseph D.
8 Utica St.
Springfield, MA 01104
Chapter: 7
Filing Date: 08/11/05

By
Departments

The following building permits were issued during the month of September 2005.

AGAWAM

Oakridge Golf Club
850 South Westfield St.
$50,000 — Install wireless equipment

AMHERST

Amherst College Trustees
62 Snell St.
$68,000 — Remove and
replace shingles

Jeffrey Eisman
650 Main St.
$20,250 — Renovate business office and reception area of dentist office

Trustees of Hampshire College
Greenwich House 3
$25,913 — Extend roof overhang

EAST LONGMEADOW

St. Lukes Church
400 Prospect St.
$600,000 — New classrooms

HOLYOKE

Light of Restoration Ministries
98 Suffolk St.
$40,500 — Offices, handicap bathroom

NORTHAMPTON

Cooley Dickinson Hospital Inc.
30 Locust St.
$2,000,000 — Construct four-story surgical/bed expansion

Hampshire Council of Governments
Gothic St.
$4,164 — Erect ground sign

Treasure Towns LLC
24 North Maple St.
$10,000 — Construct two accessible bathrooms and mechanical room

SPRINGFIELD

Baystate Visiting Nurses
50 Maple St.
$42,000 — Exterior stairs

MRI Center of New England
3500 Main St.
$4,600 — Enlarge reception area

Picknelly Family
1414 Main St.
$64,250 — Create studio for CBS 3

Springfield College
263 Colby St.
$131,500 — Install handicap bathroom
$400,000 — Create parking area

WEST SPRINGFIELD

PR Restaurants LLC
935 Riverdale St.
$300,000 — Renovate retail space into restaurant-

By
Departments

St. Germain Opens Hartford Office

HARTFORD — St. Germain Investment Management, with offices in Springfield at 1500 Main St., has opened a new office in downtown Hartford. Company president, Paul Valickus, CFA, said a steady increase from Connecticut investors requesting more of St. Germain’s financial management services has prompted the firm to open the new facility at 100 Pearl St. in Hartford.

MicroTest Laboratories To Expand

AGAWAM — MassDevelopment recently announced an $800,000 Emerging Technology Fund loan and a $370,000 mortgage insurance guaranty to MicroTest Laboratories Inc. and MicroTest Properties, LLC for expansion plans. The company, which provides laboratory and environmental testing services to the medical device, pharmaceutical, and biotechnology industries, will use the funds to expand its manufacturing and new virology laboratory facility, upgrade utilities, and purchase equipment to accommodate its growth into the biopharmaceutical product testing and manufacturing business. MicroTest employs 89 and expects to create an additional 49 jobs when the expansion efforts are completed. Administered by MassDevelopment, the state’s $25 million Emerging Technology Fund provides loans and guarantees for facilities and specialized equipment for technology-based companies.

Rocky’s Ace Expands to Norwood

SPRINGFIELD — A new Rocky’s Ace Hardware Store will open in Norwood in November. The new store is part of Rocky’s Ace Hardware’s and Ace Hardware Corp.’s progressive strategy to spark growth and expand customer service by opening additional stores in New England. Since 1999, Rocky’s Ace has grown from eight stores in Western Massachusetts, to 26 stores across New England.

VPT Consulting Opens Springfield Office

SOUTH DEERFIELD — Vincent P. Traina Jr., founder and principal of VPT Consulting, has announced the company’s expansion with new offices at 1441 Main St., TD/Banknorth Center, in downtown Springfield. VPT Consulting offers a full range of marketing, advertising and business development services.

PIP Printing Receives Industry Awards

SOUTH HADLEY — PIP Printing and Document Services recently received a “Top 25” award for sales performance during the PIP Annual Convention in Tampa, Fla. This is the fifth time that owners Dorene and Wendell Pennell and John Bledsoe have received the annual award. Also, PIP Printing has received a “Franchise of the Year” Award by the International Franchise Association. The annual award is given as a symbol of recognition for the brightest and best leaders in franchising.

Berkshire Bank Opens N.Y. Branch

PITTSFIELD — Berkshire Hills Bancorp Inc., the holding company for Berkshire Bank, recently announced the opening of a full-service branch in Shoppers World Plaza in Clifton Park, N.Y. This is the bank’s second branch opened this year in the Albany region and its third in New York.

UMass Amherst Construction Projects Exceed $40M

AMHERST — As students returned to UMass Amherst this month, the campus is sporting some $40 million in new construction projects and improvements. Ongoing projects include the deck replacement at the DuBois Library, which began last year. The $6.35 million state-funded effort involves the installation of a new, waterproof membrane and concrete deck over an underground section of the library. Also taking shape is a $3.1 million athletic track facility, located near the softball and soccer fields at the north end of Stadium Drive. The new Llewellyn Derby Track, which is expected to be ready by the end of September, replaces an outmoded facility on the site of a planned central heating plant for the campus. Several health and safety projects were also completed or are continuing. These include new fire alarm systems in Goessmann Laboratory, Morrill Science Center, Fernald Hall and Goodell at a cost of approximately $3 million. Construction efforts also include security cameras, health and fire safety-related projects, roof replacements and work in residence halls.

Monson Savings Bank Opts For New Structure

MONSON — Monson Savings Bank is in the process of converting to a two-tiered mutual holding company structure that will create Monson Financial Services Mutual Holding Co. and Monson Financial Services Corp. The Monson Financial Services Corp. would be a stock bank owning Monson Savings Bank. The bank has three branches in Hampden, Monson and Wilbraham, with total assets of $177 million.

By
Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

NORTHAMPTON DISTRICT COURT

Rugg Lumber Co. v. Pinncon Inc.
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $21,534.34
Date Filed: Aug. 18

HAMPSHIRE SUPERIOR COURT

The Travelers Indemnity Co. of Illinois v. Drywall Systems Inc.
Allegation: Breach of contract — Failure to pay workmen’s comp insurance: $73,752.00
Date Filed: Aug. 8

SPRINGFIELD DISTRICT COURT

K.S. Trading Corp. v. Hot Fashions II
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $2,315.95
Date Filed: Aug. 8

Longhorn Carpet Co. Inc. v. Chase Décor Inc. f/k/a Chase House of Décor Inc.
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $11,724.51
Date Filed: Aug. 9

Saga Communications of N.E. Inc. d/b/a WHAI/WHMP/WLZX/WAQY v. Bare Furniture & Reproductions Inc.
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $7,385.60
Date Filed: Aug. 11

Arrow Oils Inc. v. Alice Stepanik d/b/a Alice Stepanik & Sons Farm
Allegation: Breach of contract — Failure to pay for goods and services: $11,227.06
Date Filed: Aug. 15

John Deere Landscapes Inc. d/b/a Century Supply Corp. a/k/a Century Rain Aid v. Joseph Barrepski f/d/b/a Aqua Flo Lawn Sprinkler
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $12,028.82
Date Filed: Aug. 22

UNITED STATES DISTRICT COURT

Morris Switzer Environments for Health Inc.
v. Loomis Communities Inc. f/k/a Loomis
Village Inc. and Loomis Communities
Allegation: Breach of contract and mechanic’s
lien: $1,997,101.50
Date Filed: Aug. 9

By
Departments

The following Business Certificates and Trade Names were issued or renewed during the month of September 2005.

AGAWAM

Birch Hill LLC
72 Birch Hill Road
Maurice Casey

Fdubbs Video Games and More
525 Springfield St. #11
Frank Bond Jr.

In-N-Out Auto & Trucks
91 Ramah Circle
Mark Walker

Longo Carpet Cleaning
80 Ramah Circle
Christopher Longo

M & M Links and Business Services
541 Springfield St.
Maureen Abdullah

Quick Pic
1 River Road
Ali Khan

Viola House Cleaning Service
420 Main St.
Wuoletta Ramanowska

Zen-Ergenic
75 Joanne Circle
Frederic Brodeur III

AMHERST

Ambrosia’s Emporium
178A North Pleasant St.
Leanne Moulton

Dare to Thrive
129 Gray St.
Virginia Lewis

Footprints to Success
170 East Hadley Road
Hughia Magnue

Kamins of Amherst
55 South Pleasant St.
Patrick Kamins II

Red Cab
38 Justice Dr.
Houshany Ansarifar

Zoo Mass Books.com
180 Clark Hill Road
James Highsmith

CHICOPEE

Candon’s Art
157 Old Lyman Road
Kevin Candon

Gamestop and Movies Too
649 Memorial Dr.
David Carlson

J & K Properties
20 Parker St.
Jesus Delgado

Robare’s Variety
32 Center St.
Theresa Robare

Skye Mountain Realty Inc.
406 Britton St.
Patricia Gajda

EAST LONGMEADOW

Encore
60 Shaker Road
Kelly Lavillette

Terri’s Barber Styling Shop
641 North Main St.
Theresa Fitzgerald

Thomas Behan
31 Brook St.
Thomas Behan

HADLEY

Howard Johnson
401 Russell St.
Robert Shumway

Reiki Room
245 Russell St.
Nancy Johnson

HOLYOKE

Botanica San Lasaro
1375 Dwight St.
Elmis Coilado

Elmwood Fish & Chips
37 Myrtle St.
Eusaquio Rivera

Marie’s Market
149 Suffolk St.
Geraldo Rodriguez

Roham’s News Room
648 High St.
Rajendra Pandit

Wing Chun Kung Fu Council
349 High St.
Juan Fernandez

LONGMEADOW

Maritime Smarts Inc.
141 Lawnwood Ave.
Stephen and Patricia Larivee

NORTHAMPTON

Club Bus
735 Westhampton Road
Ryan Hammel, Aaron Fradkin

Faith Sullivan, M.Div.
199 Main St.
Faith Sullivan

Helping Hands
18 Perkins Ave.
Marcus Yarde

The Jamescyn Collection
61 Gothic St.
Cynthia James

Morintouch Chair Massage
11 Overlook Dr.
Christopher Morin

Unite
1022 Main St.
Thuan Luu

SOUTH HADLEY

Benny’s Produce Delivery Service
12 Ingram St.
Binyam Avnalem

SPRINGFIELD

Able Maintenance Co.
73 Naragansett St.
John Muise

Atlas Flooring
8 Vandise Circle
Pauline Edwards

Cafe Di Vang
605 Dickinson St.
Anh Bui

Corona Enterprise
45 Willow St.
Ronal Corona

E.N.M. and Associates
663 State St.
Edmund Candelaria

5 Star Video Games
599 Page Blvd.
Shaun Kelly

Ghazala Magazine
112 Price St.
Tahirah Wadud

KDH Assoc.
104 Buckingham St.
Kelvin Hines

Main St. Bottle & Can Return
611 Main St.
Duc Truong

Nobody’s Kitchen & Bath
1257 Boston Road
Nobody’s Kitchen & Bath LP

Pinacle Power Washing
9 Ramah St.
Jamie Connell

Silver Construction
88 Biltmore St.
Gleb Leiderman

Stefano’s Style
66 Glenwood St.
Stephen Crenshaw

Two Brother’s Restaurant
67 Liberty St.
Manuel Sandova

Walnut’s Bottle & Can Redemption
136 Walnut St.
Maxwell Phan

WEST SPRINGFIELD

Baystate Family Chiropractic
346 Main St.
Filomenar Larroca-Strobel

Comfort Inn and Suites
106 Capital Dr.
Nataver Inc.

Delicious Kitchen
715 Main St.
Radames Garcia

Edible Arrangements
1702 Riverdale St.
Lisa Beachemin

JVD Tek
67 Irving St.
Viet Do

Mamma Mia’s Pizzeria & Ristorante
60 Park St.
Farone Inc.

Panera Bread
935 Riverdale St.
PR Restaurants LLC

Pioneer Valley Hobbies Inc.
54 Myron St.
Dennis Gamelli

Rose Day Spa
524 Main St.
Van Le Rowen

Stevens Jewelers Inc.
2068 Riverdale St.
Eric Stevens

Upscale Nails
84 Westfield St.
Minh Nguyen

Westside Market
204 Baldwin St.
Zahoor Ul-Haq

WESTFIELD

Annatana
92 Beveridge Blvd.
Louliia Kroutii

Carpentry Services
140 Wyben St.
Kerry Plourde

Center City Service & Muffler
709 Russell St.
Frank Scigulinsky

Getty Gas Station
41 Franklin St.
Syed Bukhart

J.C.K. Construction
25 Darby Dr.
John Kent

The Krafty Shack
37 Berkshire Dr.
Merritt Gayle

N.E. Home Improvement Service
37 Crown St.
Dustin Taudal

Northeastern Auto Coach
321 Munger Hill Road
Sewall Sachs

By
Departments

The following business incorporations were recorded in Hampden and Hampshire counties and are the latest available. They are listed by community.

AMHERST

North Amherst Community Farm Inc., 36 Harris St., Amherst 01002. Deborah Evans, 58 E. Leverett Rd., Amherst 01002. (Nonprofit) To provide services regarding organic farming methods, productive use of land, etc.

Margarita’s Food Inc., 28 Amity St., #5, Amherst 01002. Lius Manuel Medina Vaillard, 65 Amherst Road, Leverett 01054. To operate a full service restaurant.

CHESTER

PLS Inc., 128 Prospect St., Chester 01011. Joy L. Salvini, same. Land surveying.

CHICOPEE

Garg Trading Inc., 419 Montcalm St., Apt. #404, Chicopee 01020. Meena K. Garg, same. Trading of general merchandise.

TNT Asphalt Repair Inc., 221 Prospect St., Chicopee 01013. Milton Theriault, same. Asphalt repair.

FEEDING HILLS

Gorilla Marketing Inc., 547 Springfield St., Feeding Hills 01030. Gerald F. Smith Jr., same. To operate a cocktail lounge.

HOLYOKE

Stefanie’s Foundation Inc., 3 St. James Ave., Holyoke 01040. Pamela J. Murnock Lukomski, same. (Nonprofit) To provide financial assistance to families with a child suffering from cancer, etc.

NORTH HATFIELD

The Hatfield Pub Inc., 312 West St., North Hatfield 01066. Roger A. Grenier, same. To operate one or more bars, taverns, cabarets, restaurants, etc.

NORTHAMPTON

Northampton Cell Phone Store Inc., 98 Pleasant St., Northampton 01060. Jonathan L. Waxman, 19 Jyra Lane, North Easton 02356. To sell cellular phones and accessories.

Soo Ra Restaurant Inc., 1 Roundhouse Place, Northampton 01060. Hyun Kyu Lee, 162 Hadley Road, Sunderland 01375. To operate a restaurant.

SPRINGFIELD

Advantage Auto Service Inc., 93-97 Wilbraham Road, Springfield 01109. Shamone Cox, same. Automobile repair services.

Game Hunter Inc., 511 Belmont Ave., Springfield 01108. Vien Nguyen, 49 E. Gooseberry Road, West Springfield 01089. To deal in electronic media, game systems, CD, music and game equipment and media.

Hemocure Inc., 1462 Plumtree Road, Springfield 01119. Alexander L. Zheleznyakov, same. To manufacture and sell medical equipment.

HOPE for Habitat Inc., One Monarch Place, Suite 1900, Springfield 01144. Stephen D. Hoyt, 49 Drury Lane, Longmeadow 01106. (Nonprofit) To assist and carry out the purposes of Greater Springfield Habitat for Humanity.

Ideal Financial Holdings Inc., 933 Main St., Springfield 01005. Marjorie Feinberg, same. To own the common stock of Ideal Financial Services.

JimBob Aviation Charter Services Inc., 1102 Riverdale St., West Springfield 01089. James E. Balise Jr., 87 Blueberry Hill Road, Longmeadow 01106. Airplane charter service.

The Center After School Program Inc., 82 Bay Meadow Road, Springfield 01109. Althea Haines, same. To provide a place for after school children to be assisted in homework, partake in educational and group activities, etc.

The Dory Lounge Inc., 487 St. James Ave., Springfield 01109. Maureen Catherine Perry, 115 Wilmont St., Springfield 01108. To deal in restaurants, inns, taverns, catering, etc.

Triple G Cable Inc., 112 Washington Road, Springfield 01108. Gerson R. Souza, same. Cable installations.

Valley Photo Center Inc., 1500 Main St., Springfield 01103. David Moviouganes, 474 Alden St;, Ludlow 01056. (Nonprofit) To operate a gallery to educate the public about the art of photography, provide classes, etc.

Zonin’s Meats Inc., 18 Winthrop St., Springfield 01103. Aurelio Daniele, 57 Longivew Dr., Suffield, CT 06078. Alfonsina Liquori, 18 Winthrop St., Springfield 01103, registered agent. To manufacture and sell foods products including meats.

WESTFIELD

Gauntlet Games Inc., 304 Sackett Road, Westfield 01085. John Michaliszyn, same. Distribution and marketing.

Hawken Management Inc., 3 Cross St., Westfield 01085. John D. West, 19 1/2 Avery St., Westfield 01085. To deal in real estate, etc.

Pinnacle Piping Inc., 40 Susan Dr., Westfield 01085. Dan Rohan, same. To provide plumbing/piping services.

Brickyard Commons Inc., 385 Root Road, Westfield 01085. Jeffery Morin, same. Real estate ownership and management.

WESTHAMPTON

G.R. Marketing Inc., 120 Chesterfield Road, Westhampton 01027. Gerard J. Ronan, same. To provide marketing, sales and development of construction and home improvement products.

WILBRAHAM

RL Lafley Construction Inc.,
3 Drumlin Circle, Wilbraham 01095. Richard L. Lafley Jr., same. Real estate development.

Scantic Valley Pool and Spa Inc., 1 Hilltop Dr., Wilbraham 01095. Thomas E. Wilson, same. Residential pool installation.

SK3 Engineering Inc., 840 Ridge Road, Wilbraham 01095. Stanley Kowalski, III, same. Engineering and product development.

The Natural Rights and Laws Compact Inc., 47 Glenn Dr., Wilbraham 01095. Richard J. Howell, same. (Nonprofit) To promote and further the mores established by God through the first settlers in 1620 to our independence in 1776, etc.

WEST SPRINGFIELD

Carol’s Concession Corp., 60 Chilson Road, West Springfield 01089. Carol Delevo, 9 Tanglewood Dr., West Springfield 01089. To provide food and beverage to the general public.

Universal Trucking Service Inc., 182 Doty Circle, West Springfield 01089. Jan Chrzan, 89 Pendleton Lane, Longmeadow 01106. Truck delivery service.

The Right Mechanic

By
The Right Mechanic
Sections Supplements
Tortus Technologies Helps the Engines of Business Run Smoothly
The Right Mechanic

The Right Mechanic

A sharp-looking Web site won’t generate much business if a company’s message is muddled and it doesn’t generate Internet traffic. As e-commerce continues to grow, West Springfield-based Tortus Technologies is helping businesses navigate such whitewater and increase their revenues.

Harry Moore has a simple question for computer users: when you’re looking for information on a business, do you still open the yellow pages? Or is it more natural to search on Google?

“People don’t use the phone book anymore; if it’s not on the Web, it’s not worth looking up,” said Moore, president of Tortus Technologies in West Springfield. “That trend has hit critical mass with all generations and all groups. The question, then, is how to take this technology and make it work for businesses. That’s what we do.”

Since launching as a Web-development house with three employees in 1996, Tortus has grown exponentially as a technology and business planning resource for companies of all sizes, with 18 employees serving more than 350 current clients. Further growth is expected, Moore said, because of what makes Tortus unique in the Web services field – its business acumen.

“Our clients have a significant advantage with us because of what we can do for them outside of Web site development,” he said. “We’re business people, as well as big users of technology. Most people in this field are simply technologists trying to work with businesses.”

Art and Science

That dual focus has spawned some success stories as eye-catching as the two-headed tortoise that graces the company’s logo. The name Tortus means “twisted” in what Moore calls “bad Latin,” but the meaning behind the logo is a bit clearer.

“The heads are art and science, and you have to blend both to make it work,” Moore said, referring to the Internet. “That starts with a company’s Web site.

“The Internet isn’t just a business tool; it’s the primary business tool, and people are beginning to understand that,” said Larri Cochran, Tortus’s director of Business Development. “It’s not just about a big Web site that looks pretty. You also have to be found on the search engines. You have to draw traffic to your site.”

To that end, Tortus not only designs, programs and hosts Web sites for companies, it optimizes them to register highly on search engines. Tortus also offers a content-management system that allows clients to update their own sites with an easy-to-use toolbar, without having to learn technical code.

“It allows clients to keep their sites timely, and it keeps costs down,” Cochran said. “Sometimes the information just can’t wait.”

Gerard Gualberto, Tortus’ lead programmer, said some customers are surprised at how easy the system is to use. “They say, ‘you mean I can change my Web site at 2 in the morning?’ Well, yeah, you can.”

Putting such tools in the hands of business people who don’t consider themselves tech-savvy is crucial, Cochran said, because Web sites, with their round-the-clock exposure (unlike TV or radio ads), are becoming the foundation of business marketing. “It’s an education for some companies,” she said. “They think they need a Web master to manage their sites, but they don’t.”

That’s not the only education Tortus offers to its clients, however, Moore said. Bi-weekly seminars help customers learn to use the tools Tortus provides. “We train people in what we do,” he said.

That guidance goes beyond simple Web skills. Tortus also helps companies develop complete business plans that will help them grow at the pace that their finances, human resources and technology level will allow.

“The Internet isn’t just a business tool; it’s the primary business tool, and people are beginning to understand that.”

Rent.com is a good example. When Tortus began working with the online real estate company in 2001, it had no workable model. “We refocused them and turned them around,” Moore said. Recently, eBay, the leading Internet auction site, bought rent.com for $415 million. “That’s a big deal,” he said.

There are plenty of local success stories as well. When Flag Fables, a Springfield company, first partnered with Tortus, it was considering expansion of its its physical retail space. Instead, it bolstered its Internet presence, and now the majority of its sales are conducted online.

“They knew nothing about the Internet, and now they’re managing their own Web site and catalog online,” said Cochran. “Our people understand business; we really work as a team – no one person has all the answers. And our clients like that we really focus on education as part of our relationships.”

Moore said 80% of Tortus’s business lies in fixing other people’s problems. “We feel like a car repair place sometimes. People come in with baggage from bad experiences. But they learn that you can’t just throw a Web site up and see what happens. You need a business model.

“And when your car is serviced right,” he added, “it’s because your mechanic just gets what’s wrong.”

A Faulty Instrument

Say you attend a symphony concert, Moore said, and the third violin sounds noticeably squeaky. Attendees are likely to say that the concert was terrible – even though the problem lay in only one instrument.

That poorly tuned instrument can be anything when it comes to Web marketing, but as often as not, the problem lies in exposure. The most well-designed site on the Web won’t help a business grow if no one looks at it. That’s why Tortus helps clients optimize their sites to show up prominently on search engines such as Yahoo! and Google.

“People who are serious about the Web come to us,” Moore said. “If you really want to be a player, we can get you up and running, get you the look and feel you want, and generate traffic.”

“You can’t build a Web site and not have it found on the search engines,” Cochran stressed. And that will be even more crucial as the Web becomes a more commerce-friendly place and Internet users become more sophisticated, she added.
“It seems to be happening all at once, but people are actively looking to the Web for business solutions,” Moore said. “It’s becoming much more intuitive and easy to use.”

Other economic trends support the growth of Internet commerce. Dana Soucier, Tortus’s director of operations, suggested that soaring gas prices are likely to turn even more people away from traditional retail outlets like malls, and toward Web shopping.

“A Web site doesn’t replace a traditional business model; it’s an enhancement that allows them to operate faster and better,” Cochran said. “Companies want to make it easy to do business with their clients, just as we’re making it easy for them to business with us.”

That claim is reflected in the growth of Tortus’s client list, which is dominated by long-term customers, and in the company’s aggressive growth goals for the coming year – which include adding seven more employees and doubling sales. “Our goal is to increase our revenue while providing great services to our clients,” Moore said. “We don’t just build web sites; we build businesses, and that’s our uniqueness.”
“If a client is successful,” Cochran said, “we’re successful.”

Plugged In

Gualberto said there isn’t time for Tortus to rest on its laurels, not when the ways information is exchanged constantly change.

“Our goal is to be good not just for this area, but when compared with companies nationally and internationally,” he said. “But it’s like being a physician – you have to keep constantly re-educating yourself. If you lay off it for six months, it shows.”
And despite the shifting technology and the growing sophistication of Web design and e-commerce, it still comes down to how businesses connect with their customers, Moore said. After all, a great Web site design won’t obscure a poorly delivered pitch.

“There are two doors you have to open,” he said. “One is to get on the first page of
Google search results. Then, what’s your message?” It had better be solid, Moore explained, because the average computer user searching for a product or service will look at a site for four seconds, on average, before deciding whether to keep reading or head back to Google.

“If you’re on that first page, great, but what are you going to tell people?” he asked.
Once the message is clear, Tortus Technologies can help find the audience
– and that’s a marketing concept that has never changed with the times.

Community Profile:

By
Uncategorized
DEMOGRAPHIC INFORMATION

Year Founded: 1669
Type of Government: Mayor/City Council
County: Hampden
Area: 47.33 square miles
Population: 38,372
Population Density: 824 per sq. mile
Median Household Income: $40,144
Labor Force: 19,413
Households: 14,797
Owner-occupied Housing Units: 67.8%
Registered Voters: 9,596
Commercial Tax Rate: $30.79
Residential Tax Rate: $15.66
Avg. Residential Tax Bill: $2,728
Residential Tax Bill State Rank: 221
Median Sales Price of a Single-family Home: $173,000

KEY ELECTED/APPOINTED OFFICIALS

Mayor: Richard Sullivan
City Council President: Brent Bean
State Representative: Donald Humason Jr.
State Senator: Michael Knapik
School Superintendent: Thomas McDowell
Community Development Director: James Boardman
City Planner: Larry Smith
City Solicitor: Peter Martin
City Clerk: Karen Fanion
Bulding Commissioner: Donald York
Collector: Gregory Kallfa
Chamber of Commerce President: Ali Salehi

TELEPHONE DIRECTORY (area code 413)

City Hall (information): 572-6200
Mayor’s Office: 572-6200
Westfield G&E 572-0100
Assessor’s Office: 572-6223
Department of Community Development: 572-6246
Barnes Municipal Airport: 572-6275
Building Department: 572-6250
Greater Westfield Chamber of Commerce: 787-1555

MAJOR EMPLOYERS*

Westfield Public Schools 1,200
Noble Hospital 562
City of Westfield 500
Westfield State College 475
Old Colony Envelope Co. 400
Mestek Inc. 380
Hospice/Palliative Care Unit 250
U.S. Army National Guard 248
Walmart 245
Savage Arms Inc. 222

*Data from the 2003 Major Employers Inventory, prepared by the Pioneer Valley Planning Commmision

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From Crisis to Control

By
Sections Supplements
Four Tips for Strategic Project Management
Many businesses today are losing money by having projects in crisis. In fact, many organizations set up Project Management Offices (PMOs) as a tool to improve project management. However, the evidence shows these fail more often than succeed. In fact, recent findings show that over 75% of organizations that set up a Project Management Office shut it down within three years because it didn’t demonstrate any added value.

To get to the root cause of the problem we’ve got to take a broader perspective and look at how organizations approach project management from a strategic level.
Here are four key strategies that will immediately make a difference for organizations.

1. Ensure All Projects Are Strategically Aligned
A major reason for project failure is that organizations do not ensure that all projects they implement align with their core strategies. In fact, according to recent findings, 80% of organizations have no formal business case for the development of their project management office and 73% of organizations identified “lack of executive sponsorship” as being the primary reason for failure of their project management office.

If organizations were to implement only those projects that were in alignment with their strategic goals, their success rate would increase dramatically because executive sponsorship would not be an issue. However, the recent findings show that the majority of projects on the go are not associated with corporate and/or departmental strategic plans.

What You Can Do To Align Projects With Corporate Strategy
First, review lessons learned from projects currently underway or completed over the past year to uncover possible success criteria and to determine project prioritization issues. For example, if many projects were unsuccessful because of a lack of resources then resources required to complete future projects should be considered a criterion for determining project viability.

Next, develop criteria against which all projects can be prioritized. Include impact on corporate strategy and customers. To do this, work with a sub-committee of senior management. List all projects along with their goal and strategic alignment. Then try to identify criteria necessary for determining the expected impact each project will have on the organization, its departments and its customers. Rank each project quantitatively and determine its level of priority.

Finally, align projects to corporate and departmental strategic plans, thereby demonstrating how each project’s successful execution will support the corporate and/or departmental strategic plan. Terminate projects that are of low priority or not somehow linked to corporate and/or departmental strategy. This will ensure they stop costing the organization money, resources, time and lost customers.

If organizations were to implement only those projects that were in alignment with their strategic goals, their success rate would increase dramatically because executive sponsorship would not be an issue.

2. Create a Culture That Supports a Project-Management Environment
The research identified a number of reasons why organizations set-up a project management office. These included; more successful implementation of projects (82%); predictable, reusable project management tools (74%) and organizational improvement (66%). It is interesting to note some of the more important reasons why organizations should set-up a project management office such as organizational improvement and building the project-management culture, were not the top reasons cited in the research.

If a project is strategically aligned and if project management is built into the corporate culture then everyone who works on a project will immediately know what their part is in making the project successful. Staff will not have to locate a project management office to tell them how to manage a project, what tools to use, what templates to use, and so on. Project management will be a competency embedded into everyone’s role. Much as quality management has evolved over the past 20 years to becoming a competency requirement for all jobs, project management is following the same route.

What You Can Do To Create A Project Management Culture
Undertake a change strategy specific to creating it. Business improvement architects calls this a Project Culture Initiative™ (PCI™). This requires the forming of a cross-functional steering committee to develop the approach and process for creating the corporate change. Values and principles need to be created to identify the unique project approach for the organization. Staff education is required to ensure they understand the benefits of the change to them, the organization and its customers.

3. Implement Strategic Project Management Best Practices
The research identified the strategic priorities of most Project Management Offices and determined that: 77% developed project management methodologies, 76% developed structures for their project management offices, 69% identified project roles and responsibilities, 60% developed tools and templates, and 54% implemented project management training programs. From these results, it became evident that project management olffices were task oriented, not strategic. They didn’t consider lessons learned to be of great importance in their overall mandate.

What You Can Do to Implement Strategic Project Management Best Practices
Knowledge retention is a major benefit to organizations because it contributes to continuous learning and avoidance of repeated mistakes. In order to retain project knowledge that can be passed on as “lessons learned” for future project teams, the project management office must hold a formal ‘project close-out meeting’ as soon as possible after a project is completed because, at this point, the knowledge about the management of the entire project is still fresh in everyone’s mind.

The purpose of the closing meeting is to review what happened in the project and what the team and the organization can learn from what happened. The project sponsor, project manager and project team should be in attendance as well as any outside resources and/or stakeholders who would like to contribute their ideas. The outcome of the project closeout meeting will be the creation of a formal document of “lessons learned” for archiving, to be carried to future projects, their managers and their teams.

4. Create a Strategic Project-measurement System
The research identified how project management offices measured their success. Their measurements included projects on time (76%), projects on budget (67%), achieved scope requirements (66%), customer requirements met (65%) and achieved all milestone deliverables (52%). The project-management offices chose traditional metrics to demonstrate success, not strategic ones.

How to Create a Strategic Project Measurement System
The establishment of project success measures will help to provide the senior management team with relevant information needed to make decisions affecting project completion. For example, the presentation of project success measures may convince management to re-prioritize projects or to re-allocate resources.
Project success measures will also provide the Project Management Office with the necessary information to continuously sell the impact they are having on organizational effectiveness. The strategic types of project success measurement criteria should include:

  • Ability of the project to be managed within specified quality criteria;
  • Ability to meet regulatory requirements;
  • Number of resources used versus the number of resources they thought they would use;
  • Ability of the project to meet its defined targets and deliverables;
  • Customer post-surveys indicate satisfaction with the product or service delivery from the project;
  • A successful and problem-free launch;
  • Business case is proven through the rate of return.

Concluding With a Cultural Change
The research shows that successful project-management systems require that organizations undertake a significant cultural change because project management systems have a profound effect on: reporting structures, performance systems, communication systems and resources. Employees need to be prepared for the changes and understand the benefits.

A quality-based approach to the management of projects gives corporations the ability to successfully execute projects time after time.

Michael Stanleigh is President of Business Improvement Architects, a consulting firm that guides organizations to align their business strategy with their culture, performance systems and projects to reduce waste and increase profitability. Hew is also author of the recent global report: From Crisis to Control: A New Era in Strategic
Project Management;[email protected]. (www.bia.ca)

Eminent Domain

By
Sections Supplements
Ruling Blurs the Line Between Public Use and Private Economic Development
In June of this year, the U.S. Supreme Court, in a 5-4 ruling, granted cities and towns the right to take private property to promote private economic development projects even though the Constitution prohibits the government from taking private property except for a ‘public use.’

The ruling, derived from Kelo v. New London, a land-use law case argued before the court on Feb. 22, 2005, ended a bitter, intently watched confrontation between homeowners and the City of New London, Conn. The case arose from New London’s use of eminent domain to condemn privately owned real property so that it could be used for economic development.

A private entity acting as the city’s legally appointed agent, the New London Development Corporation (NLDC), created a development plan that included the construction of a resort hotel and conference center, a new state park, 80-100 new residences, and various research, office, and retail space. In 2000, the city of New London approved the plan and authorized the corporation to acquire the land in the Fort Trumbull neighborhood.

The owners of approximately 100 of the subject lots agreed to sell to the corporation at a negotiated price. However, 15 owners did not agree, and the city ordered the development corporation to condemn the 15 holdout owners’ lots.

The last clause of the Fifth Amendment to the United States Constitution, known as the Taking Clause, states “nor shall private property be taken for public use, without just compensation.” The owners sued the city in Connecticut courts, arguing that the city had misused its eminent domain power, therefore violating the public use requirement of the Takings Clause of the Fifth Amendment.

However, the Supreme Court disagreed. The court, led by Justice John Paul Stevens who wrote the opinion, concluded that the government can legitimately use eminent domain if it believes it will “provide appreciable benefits to the community, including but by no means limited to new jobs and increased tax revenue.” Furthermore, the court reiterated its policy of deference to local municipalities in determining what public needs left the use of the takings power. As such, the NLDC’s conclusion that the 90-acre redevelopment area was sufficiently distressed to left a program of economic rejuvenation was entitled to deference by the court. Moreover, Justice Stephens cited cases in which the court has interpreted ‘public use’ to include not only such traditional projects as bridges and highways but also slum clearance and land redistribution.

Justice Stevens’s opinion provoked a sharply written dissent from Justice Sandra Day O’Connor, who wrote that the decision will “wash out” any distinction between public and private uses of property, leaving homeowners vulnerable to the whims of unelected planning agencies. Furthermore, Justice O’Connor contended that the “specter of condemnation hangs over all property. Nothing is to prevent the State from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory.”

The decision also elicited strong opinions from those in academia. For example, Richard Epstein, Professor of Law, University of Chicago, wrote that “[t]he ‘public use’ test is so broad that no major government initiative fails to meet it, for every large-scale project could be justified in the name of ‘economic development’ even if the plan is a dead loser from the moment of conception.”

The backlash against the Supreme Court ruling has bolstered landowners and politicians to fight the seizures. According to a lawyer at the Institute for Justice, “It is finally dawning on homeowners and small businesses that ‘this could happen to me.’” A Quinnipiac University poll shows just how much the eminent-domain issue resonates. By an 11-to-1 margin, those surveyed said they opposed the taking of private property for private uses, even if it is for the public economic good.

Justice Stephens declared in his opinion that states may use their own constitutions and laws to limit eminent domain powers. In the six weeks after the Supreme Court’s ruling in the Kelo v. New London case, bills have been introduced in Congress and in more than half of the state legislatures that would restrict, to varying degrees, the use of eminent domain for private development.

In Massachusetts, a bipartisan group of state lawmakers led by State Rep. Bradley Jones, (R-North Reading), has filed a petition, a bill, and a proposed state constitutional amendment designed to limit the power of cities and towns to take private property by eminent domain. The bill would bar cities and towns from seizing private property solely for economic development except in cases where the property is “a substandard, decadent, or blighted open area” under state law.

Massachusetts has a history of unpopular and economically flawed takings. Two
famous examples are the eradication of four townships nearly a century ago to
construct the Quabbin reservoir in central Massachusetts, and the bulldozing of
Boston’s West End in the 1960s in the name of urban renewal. Both are now routinely lamented.

Local leaders and agencies such as the Boston Redevelopment Authority, who
fear that restricting the power of eminent domain will hamper their efforts to rejuvenate rundown neighborhoods by providing new jobs and increasing tax revenues, will likely provide strong resistance to the proposed bill.

These leaders and agencies will argue that the current legislative standards are sufficient and in recent years Massachusetts courts have held local officials to a relatively high standard of what constitutes the public good. They will cite a 2000 Superior Court decision barring Springfield from taking private land to build a minor league ballpark as an example of the impartiality and effectiveness of the current legislation.

In conclusion, courts have long struggled to determine what is a constitutionally permissible justification for taking property. Some argue that the Kelo decision is a landmark decision greatly expanding the government’s power to take private property
while others view the decision as not much of a change, as it has long been recognized that the government has broad powers to order the sale of property.

However, it can be definitively stated that businesses that hope to benefit from
an eminent domain taking can expect organized resistance and negative publicity
despite the intentions of the proponent.

Todd C. Ratner is a real estate and business attorney with the law firm of Bacon & Wilson, P.C., who specializes in business, transactional, commercial and
residential real estate law; (413) 781-0560;[email protected].

Windows of Opportunity

By
Steve ·Dusty· Hoyt
Features
Businesses Pitch in to Help Habitat for Humanity
Steve ·Dusty· Hoyt

Steve ·Dusty· Hoyt, left, and Steve Gelling,say the upcoming Habitat project takes the involvement of the business community to a higher level.

Steve ‘Dusty’ Hoyt says his company endured a good deal of hardship over the years on the way to its current robust health.

A distributor of Marvin windows and doors, Enfield-based A.W. Hastings was hard hit by the long recession of the early ’90s and its profound impact on the housing market. It also weathered other economic ups and downs, shifts in product lines, assimilation into the Greater Springfield market, and mounting competition.

“A lot of people stood by us and helped us through those tough times,” said Hoyt, listing banks, long-time customers, suppliers, and devoted employees as those who enabled the company to endure and recently reach a rare milestone — 150 years in business. (Actually, it’s 158, as determined by some recent research).

Being on the receiving end of such generosity has helped spark a strong sense of giving back throughout the company, Hoyt told BusinessWest. He cited creation of the program TEAM (Together Everyone Achieves More), which has involved employees in a number of community activities, as the greatest manifestation of that spirit.

Until recently.
Indeed, while searching for a meaningful way to celebrate the 150th birthday, Hoyt and his brother, Jonathan, Hastings’ treasurer, wondered if the company could take its participation with the Greater Springfield chapter of Habitat for Humanity to a higher level.

Hastings had frequently made at-cost contributions of windows and doors for Habitat homes, and several employees had volunteered to install such products, said Dusty Hoyt. “I was thinking about the various talents of the different people we have within our company — from architectural drawing ability to hands-on skills, and it struck me, ‘why can’t we build one of these houses all by ourselves?’”

He put that question to his employees early this year, and the response was overwhelming, thus providing one of the pieces to what will be a landmark Habitat project, scheduled to commence later this month.

Stephen R. Gelling, executive director of the Greater Springfield chapter of Habitat, said this will mark the first time that private companies will provide the land, labor, and materials for a home. A parcel at the corner of Bartlett and Carew Streets in Springfield, across from the entrance to Mercy Medical Center, has been donated for the project by Thomas Henshon, owner of West Springfield-based Pearson Systems, said Gelling, adding that Hastings employees will provide the bulk of the labor for the project and also purchase the materials — families in line for future Habitat homes will also contribute sweat equity. “We’ve had other companies sponsor homes in the past,” said Gelling, using that word to describe the act of covering the cost of materials and specialized labor not handled by volunteers. “But they (A.W. Hastings) want to utilize their specific skills and go in and make this a total hands-on effort. For our chapter, this is something totally unique.”

And also something he hopes will prove inspirational to other businesses in the area. “This build project will provide a family with a home,” he said, “but it will also create a lot of excitement within this company and a tremendous sense of accomplishment; we’d love to see other businesses experience those same things.”

BusinessWest looks this issue at how this most recent Habitat project came together, and also at how the local business community continually steps up its contributions to the organization that makes the dream of home ownership a reality.

Hammering Home the Point

Hoyt and Gelling both told BusinessWest they weren’t sure what to expect for a response when they scheduled an after-hours meeting at A.W. Hastings this past spring to formally present the company’s Habitat plans and gauge response.
“I was expecting maybe a handful of people,” said Gelling. “Instead, the room was full of people who wanted to know what they could do; there was a lot of energy in that room.”

The home to be built at the corner of Carew and Bartlett Streets, one of three to be started by the local chapter by the end of this year, represents a new, higher level of involvement for the business community in Habitat, said Gelling. He noted that individual companies and groups have made contributions ranging from full sponsorship to donations of materials to volunteering in the construction of many of the 22 homes the local chapter has built in the past five years.

Members of the business community have taken part in the chapter’s ‘women-build’ initiative, he said, referring to one home built, as the name, suggests, entirely by women. They have also taken part in some of the so-called “blitz build” projects in which homes are put in 10 days, and in various ways for more-traditional projects, which take six to nine months.

Meanwhile, the latest Habitat project is also the most ambitious act of ‘giving back’ for A.W. Hastings employees, said Hoyt, noting that it melds community activism with the company’s experience in home-building.

“This made sense for us on a number of levels,” he explained. “First, we’re affiliated with the home-building business as a window distributor, and we also recognize how important a home is to a family and understand the inspiration that can ensue when someone has a vision like that to look at.”

As Hoyt mentioned, the company’s ‘giving-back’ philosophy stems in part from the generosity extended in its direction throughout its history, and particularly over the past 30 years. In 1976, the company, founded in Boston, lost its primary window supplier, and, as a result, about 40% of its business. It found a new supplier in Marvin, but needed strategies to replace the lost volume.

One of those strategies was to expand territorially, a decision that brought Hoyt, grandson of Ivan Hoyt, a manager who purchased the company from the Hastings family in 1945, out to Springfield to cultivate a new market.

Over the next few decades, the company consolidated both its operations (into its current facility in Enfield) and its product lines — focusing on Marvin and its windows and doors — while also weathering several downturns in the economy.

“What brought us out here was a crisis — we were really on the ropes,” he said. “We’ve been through a few of those on my watch — hopefully not because of my watch — and there are a lot of people who helped us along the way.”

Today, the company, like most in the home-building and renovations sectors is enjoying profound growth at a time of extensive new building and remodeling in many regions, including the Pioneer Valley and Northern Connecticut.

“The past decade has been our longest period of sustained growth,” he said, adding that while the tough times are becoming an increasingly distant memory, they haven’t been forgotten.

“We know what it’s like to need help,” he explained. “And I think it’s because of where we are now and the experiences we’ve been through over all those years that we feel that since we’ve achieved some element of success that we have an inherent responsibility to give back to our community.”

This mindset helped drive the creation of TEAM, said Hoyt, noting that the program solicits small weekly donations from employees as well as time and energy for various charitable efforts, ranging from the “adoption” of a local Enfield elementary school to staging a bike race to benefit an employee’s with mitochondrial disease.
And it also created a great deal of enthusiasm for the Habitat project.

Indeed, as he talked about the enormous task ahead for A.W. Hastings — building the 1,200-square-foot, six-room home, raising the money to pay for the materials, and organizing every aspect of both initiatives — Hoyt said he expects each of his 140 employees to “touch” the undertaking in some way.

“One of my goals is to get everyone involved in this — be it with fund-raising or banging nails,” he said. “There’s certainly plenty of work to do.”

The level of organization needed for the project can be seen in a flow chart that delineates the various aspects of the initiative and those who will lead them. Hoyt is acting as project leader, and has three teams reporting to him — one focusing on processes and volunteer-coordination, another on marketing and finance, including fund-raising, and a third, much larger group dedicated to the broad construction effort.

Within the construction team are more than 20 leaders of specific tasks, from excavation to gutters, permits and inspections to landscaping, interior trim to the front porch.

The Habitat project has captured the imagination of the company’s employees, said Hoyt, adding that many have enthusiastically found ways to trim time and cost from the initiative by soliciting donations of materials and expertise.

“We had someone step up and say ‘my cousin does excavation, and he says he’ll do the excavation work for this and only charge us for the asphalt,’” said Hoyt. “We have an electrician who said he’d do that work for no charge; we’re seeing people come forward and do things like that. It’s exciting.”

Foundation Work

Reflecting on the creation of TEAM and this latest manifestation of its purpose, Hoyt said A.W. Hastings has created a culture grounded in the philosophy that, by working together, its employees and managers can do more than make their company successful.

“We can make an impact in our community,” he explained, adding that the “Hastings home,” as its being called, will hopefully inspire other businesses to be part of Habitat’s efforts and encourage more families to pursue their dreams of home ownership.

In that sense, the company is opening doors of opportunity — literally and figuratively. v

George O’Brien can be reached at[email protected]

The Broad Impact of Fuel Price Hikes

By
Opinion
You feel it at the gas pump every day – the cost of fuel continues to rise. These increases impact the price of many products, including other fuels — and electricity, which impacts every business, large and small.

Understanding why the price of electricity fluctuates — and is currently rising — doesn’t ease the pain, but it will give business owners some important perspective, and perhaps an appreciation of how the energy business has changed over the past several years.

With the utility industry deregulated and electricity now being purchased in the competitive market as any other commodity, customers are more exposed to market volatility. As with other commodities, various factors can impact the price consumers will pay for electricity supply. Global impacts, such as the war in Iraq, the death of Saudi Arabia’s King Fahd, or threats of terrorism, will impact the market. Weather also plays a large role in pricing – clearly evident in the wake of Hurricane Katrina.
Here in New England, fuel is the biggest driver of electricity pricing. Much of New England’s generating plants are powered by oil or natural gas. As these fuel prices rise and the cost to generate electricity increases, the cost for that electricity supply will also increase.

To illustrate the impact all these factors have on pricing: on August 15, electricity supply on the market was priced at 9.8 cents per kilowatt hour (kWh). The following day saw a slight dip in supply price – 9.7 cents per kWh. Two weeks later, the day Hurricane Katrina hit, the market price started out in the morning at 10.8 cents per kWh. By the day’s end, the price had increased to 11.1 cents per kWh.

Unfortunately, these factors not only play a role in pricing, but can impact the financial success, competitiveness, and economic development of our business community. Western Mass. Electric Co. (WMECO) customers who are not on competitive supply will see an impact by this market volatility in the fourth quarter pricing. Beginning Oct. 1, medium/large commercial and industrial customers (rate classes G-2, T-4, T-2, I-1, I-3, PR and Contracts) will see a fixed rate of 9.715 cents per kWh, up from a third quarter price of $7.625.

There are options to battler these rising prices, starting with conservation. WMECO can provide businesses with experience and expertise to reduce their energy usage, lower costs, and improve productivity and overall competitiveness. Through these conservation programs, the utility can also offer a variety of incentives for the installation of cost-effective, energy saving measures – in some cases, with no investment on the business’s part. From lighting upgrades to new construction, WMECO encourages its customers to contact us for more information about these programs (800-835 2707) or on the Web at www.wmeco.com and click on “How to Save Energy.”

Businesses also have option of choosing a supplier. WMECO encourages you to educate yourself on choosing a supplier, then contact the licensed suppliers in Massachusetts and evaluate the rates they are able to offer you.

As prices vary with each customer, it is often difficult to predict whether or a specific business will be able to obtain a lower price. However, suppliers may be able to offer a longer-term contract which can help companies better manage their budget and operating costs. Information to help choose a supplier and negotiate a contract as well as a list of licensed suppliers is available on the WMECO Web site, as well as through through the Department of Telecommunications and Energywww.mass.gov/dte) and the Division of Energy Resources;www.mass.gov/thepower.
While WMECO — or any utility — cannot control nor predict what occurs in the competitive market, it does make every effort to mitigate the price volatility. The utility conducts several competitive bid processes throughout the year to secure the lowest possible price available on the market at the time of bid, and it purchases blocks of supply at various times throughout the year to minimize the price impact.

The utility has also committed to keeping its distribution rates stable through 2006. For more information on WMECO rates, visit the “Basic Service Pricing” section ofwww. wmeco.com.

Rodney O. Powell is president and chief operating officer of Western Mass. Electric Co.; (413) 787-9293.

Fueling Speculation

By
Cover Sept. 19, 2005
Cover Story
As Gas Prices Soar, Business Owners Feel the Squeeze…
Cover Sept. 19, 2005

Cover Sept. 19, 2005

In this climate of staggering gas prices, businesses across all industries are struggling with both a new set of financial hardships and the crafting of an appropriate response. Most say they are trying to avoid measures that amount to panic, and are instead focused on creative solutions that will enable them to maintain client relationships — and also stay afloat until the storm passes.

Dennis Scibelli sees trouble brewing. His coffee delivery business, Break Time based in Springfield, is feeling the squeeze of gas prices that soared in the wake of Hurricane Katrina and have generally been much higher than they were a year ago. And the price of gas isn’t his only concern.

Indeed, the rising cost of fuel has contributed to hikes in prices for everything from sugar packets to paper cups. To add insult to injury, the price of coffee has climbed as well, as many warehouses and production facilities in Louisiana were decimated by the recent hurricane.

“It’s killing us,” Scibelli lamented. “We’re in the service industry, so how are we supposed to tell a customer that we just can’t deliver? We have to continue on, and we’re doing the best we can to curb our costs.”


Ed Dersarkis is owner of Deluxe Limousine, located in Agawam, Mass.

Scibelli’s plight is in many ways similar to that of business owners across virtually every sector of the economy. There is the immediate challenge of responding to the sharp spike in gas prices after Katrina and the larger issue of how the price at the pump impacts the cost of doing business. In short, everything costs more, from plywood to pizza.

This puts business owners between a rock and a hard place. They need to stay afloat and, hopefully, in the black. At the same time, however, they need to maintain clients and steady business relationships for he long-term.

This is a delicate balancing act, as Ed Dersarkis will tell you. As owner of Deluxe Limousine Service in Agawam, he’s impacted by gas prices in a number of ways, including the many pre-written corporate contracts he has, most of which were penned when gas prices were roughly half what they are currently.

Dersarkis said he plans to honor those contracts until the end of the year, at which time he said he’ll employ surcharges to help close the gap that the gas price explosion created, but will split the difference of any increases with his clients, absorbing 50%. The tactic, he said, is designed to keep prices down and to maintain a reputation of fair pricing, as well as to approach the gasoline crisis more conservatively.

“To increase prices creates the risk of pricing oneself out of the market,” he said. “And the worst thing I could do would be to increase prices across the board based on the cost of fuel. That’s a panic response and you can’t be constantly adjusting your prices to match your costs. It’s much smarter business to remain consistent.”
It’s that fine line between providing consistent service to clients and curbing costs that is undoubtedly the greatest concern for business owners in all industries, and it’s prompting many, like Dersarkis, to get creative in their business plans for the coming fiscal year.

BusinessWest looks this issue at the soaring prices at the pump impact area businesses, and how they respond.

“It’s killing us. We’re in the service industry, so how are we supposed to tell a customer that we just can’t deliver? We have to continue on, and we’re doing the best we can to curb our costs.”

Cost and Effect

Tom Demers, vice president of Finance and Supply Chain at Kleer Lumber in Westfield, a manufacturing company that produces plastic trimboard – an alternative to wood – said soaring oil prices touch every aspect of the business.

“Everything that goes out of here goes out on a flatbed truck,” he explained. “And as the price of oil goes up, so does the price of resin (used to make the plastic lumber Kleer manufactures).”

Those shifts in costs have prompted management at Kleer to look both externally and internally to reduce costs, reevaluate operations and procedures, and keep an even closer eye on competition, to ensure that any adjustments they do make to the company’s structure do not affect competitiveness in the marketplace.

“Everybody is feeling the burn,” Demers explained, noting that raising the cost of the company’s products will likely be part of the response to the gas quandary. “But it’s important to keep an eye on efficiency. We’re monitoring our costs quarterly … we don’t have a doomsday outlook, but we need to continue to examine ways to lower our cost base. That’s just the name of the game today.”

Scibelli concurred. He said small surcharges have been added to all deliveries — a necessary step — but the company’s response is much broader.

“Most people understand that we have to do that,” he said of the surcharges, which have been implemented by businesses ranging from cab fleets to golf courses. “But that doesn’t cover the whole nut. We can’t pass on the total cost, so naturally we have to absorb some, and that means we’re making less of a profit.”

To further address the problem, Scibelli has turned to reducing the number and length of ‘outs,’ or the number of times in a week that delivery trucks will make the rounds to their various customers in Western Mass., and asking clients to place larger orders less frequently in order to achieve that goal. Eventually, he suspects that he’ll also have to reduce his service radius, rather than expanding the business into new markets.

And, like all business owners, he’s being imaginative. “We’re utilizing UPS more than we ever did,” he explained. “That saves more than gas money – it saves the time the trucks are on the road, driver costs … it’s one example of how and why people need to really start to get creative out there.

“We’re doing OK,” he continued, “but it’s a day-to-day battle and a weekly concern. We’re just like the average consumer in that we’re chasing the best gas prices around Western Mass., too – I’m on the phone telling my drivers where to go every morning. You just have to.”

“To increase prices creates the risk of pricing oneself out of the market. And the worst thing I could do would be to increase prices across the board based on the cost of fuel. That’s a panic response and you can’t be constantly adjusting your prices to match your costs. It’s much smarter business to remain consistent.”

Small, delivery-oriented businesses like Break Time aren’t the only ones feeling a direct hit from costs at the pump, however. Those in the transportation industry are probably those feeling the crunch most immediately. Dan Crowley, vice president of Operations for Palmer Dedicated Logistics, which sells dedicated truck services to various businesses to meet their transportation needs, said his entire industry has undoubtedly been affected, although business has remained steady in the face of rising fuel costs.

“Diesel and unleaded fuel have both gone up in price, so that hurts us,” he said. “We’ve had to impose a fuel surcharge of about 45 to 50 cents on every mile run. If we tried to absorb those costs, we’d definitely be in the loss column.

“Consumers are paying those extra charges when they pay for nearly everything,” he continued. “It’s all being passed along. Business can always be better, but we’ve been able to cope … the entire economy is based on moving goods and services, and that’s not going to go away.”

Pumping for Information

Amid the general gloom over the gas-price issue there are some possible silver linings — and even some attempts to seize the moment. Indeed, businesses and organizations are urging local consumers to take advantage of local goods and services, in order to save on fuel costs and support the local economy as it weathers this, its most recent economic storm.

Bob Kaufman, owner of Bob’s Discount Furniture, has taken to the airwaves with his suggestion to local shoppers, in a recent commercial that asks them to avoid high gas prices and instead “Come on down to Bob’s.”

Meanwhile, area tourism leaders say the ugly numbers at the pump may prompt people to take in local attractions rather than hit the road for extended trips. Wayne McCary, president of the Eastern States Exposition, said he is hopeful that attendance will get a boost for this year’s fair, which runs through Oct. 2, as Northeast residents look for entertainment and travel options closer to home.

Dersarkis told BusinessWest that, in some ways, higher fuel costs actually promote more business for limo companies. He said he has seen early indications of continued health due to greater interest in chartered transportation for events both corporate and leisure in nature.

“People are starting to carpool to conventions and seminars or to Red Sox games, and splitting the cost to hire a car service rather than fill up their own gas tank,” he explained.

“It’s a day-to-day battle and a weekly concern. We’re just like the average consumer in that we’re chasing the best gas prices around Western Mass., too – I’m on the phone telling my drivers where to go every morning. You just have to.”

Pride Gasoline Stations, meanwhile, has chosen a unique approach to the issue of gasoline supply and prices in the nation overall. The company has made the proactive move of switching all of its stations over to a 90-10 mixture of traditional gasoline and ethanol, a corn-based bio-fuel. While that has little effect on prices, it does address the more global issues of petroleum supply, demand, and dependence on foreign oil, as well as that of the overall health of the U.S. economy.

“Ethanol is a renewable source of energy,” said Ellen Carra, director of marketing for Pride. “It reduces our dependence on foreign oil because it replaces crude oil, and gives work to U.S. farmers.

“Use of ethanol will cut the U.S. trade deficit by $34 billion by 2012,” Carra continued, noting that Pride is the first chain in the state to convert to a bio-fuel mixture, and 20 states in the nation already require it, including neighboring Connecticut and New York. “Pride has a commitment to fair pricing and responsible energy use and I think the two go hand in hand. As more suppliers begin to focus on changing their own tanks over to a blend, it’s going to create a real win-win for our economy.”

And Carra added that Pride gas stations don’t see themselves as on the other side of the fence of the current gas crisis; all but one of Pride’s stations include a retail component, she explained, and the rising costs of goods delivered to the stores, particularly those supplied by local vendors who cannot absorb costs as easily as larger, national companies, have indeed been felt.

“Those companies are having to tack on anywhere from $1 to $3.50 in surcharges for each delivery, and those costs definitely add up,” she explained. “This is something we’re dealing with on both fronts everyday.”

Crude Estimates

Coping, and waiting for the gas price fever to break, is what most businesses are doing today.

Taking a ‘this, too, shall pass’ attitude helps with the day-to-day struggle, said Scibelli, as does acknowledgement that the current crisis is not going to change how
people live or conduct business.

“People are just not going to stay in their homes and hide until these prices go down,” he said. “I’m a business owner, but I’m a consumer, too. I have an SUV … am I going to cancel my weekend plans? No, because when all is said and done we still need to strive for a quality of life here.”

“So my life really mirrors my business … I can’t increase what I’m doing right now, but I can do the best I can with what I have.”?

Jaclyn Stevenson can be reached at[email protected]

O P I N I O N

By
Opinion
Learning a Lesson from China
China has shed its fabled economic isolation and is now a world-class trader that uses its advantages of size, scale and cost to compete in the international marketplace. The consensus is that within a generation or two, China’s economy will equal America’s.

How did China advance so dramatically?

Historically, China has always had vast resources and formidable power — but has only intermittently sought engagement with the wider community of nations. After many years of walling itself from the outside world, China is again welcoming foreign investment and engaging in international trade. While others debate globalization, China has mastered it.

Some are alarmed at the pace of China’s economic expansion and seek to constrain it. We have seen the elements of this strategy in various proposals to erect barriers to U.S. imports of Chinese goods.

Not only are these attempts to inhibit China’s international trading unrealistic, they are potentially damaging to the U.S. economy and job growth. A prosperous China with a rapidly expanding middle class represents one of the most significant opportunities for the United States.

U.S. producers across nearly every industrial sector — from commercial aircraft to medical devices to integrated circuits — recognize China as one of the world’s most promising export markets. Boeing, for example, will soon begin filling an order for 60 new commercial airplanes for China. Limiting U.S.-China trade might actually do more to inhibit job growth in Seattle than in Shanghai.

U.S. agriculture also has a growing stake in China trade policy: Since it joined the WTO in 2001, China has become one of the fastest growing markets for U.S. farm products, with exports tripling from $1.7 billion to $6.1 billion in 2004.

And that’s just the export story. Last year, affiliates of U.S. companies doing business in China sold more than $75 billion worth of products to Chinese consumers and businesses.

Clearly, the U.S. has nothing to gain by adopting a protectionist posture. Rather than attempting to constrain the competition, we should adopt a strategy that will amplify our own strengths. Such a strategy has five elements:

  • First, we must take advantage of the economic opportunities in our own hemisphere. Congressional approval of CAFTA was an important step toward creating more outlets for products made in the U.S. This should be followed by a revitalized effort to complete the Free Trade Area of the Americas, covering 34 nations.
  • Second, we should deepen the Transatlantic Business Dialogue and work towards the creation of a Free Trade Agreement with the European Union. This would stimulate growth and provide an incentive for Western Europe to undertake reforms needed to keep their economies internationally competitive;
  • Third, we must intensify our trade program in Asia in order to benefit from the increasing economic interdependence among the region’s nations. Most importantly, we should build on the success of Indian Prime Minister Manmohan Singh’s recent trip to the U.S. to deepen our trade relationship with India. And the U.S. should accelerate trade negotiations with Southeast Asia, including Vietnam, and open talks with Japan and Korea. China is already moving aggressively to tie neighboring economies to its own.
  • Fourth, we must ensure a successful conclusion to the global negotiations in the World Trade Organization. This will further encourage China and virtually every important trading nation to live up to their WTO commitments and play by the rules of foreign trade;
  • Finally, if we are going to meet this new competitive challenge, we must get our own house in order. The biggest concern of American industry, according to a recent Commerce Department survey, is not foreign imports but domestic policies and problems. Manufacturers cite rising healthcare costs, burdensome taxation, excessive regulation, and inadequate investment in research and education as the prime constraints to long-term competitiveness.

China’s successful economic expansion is creating new wealth, for Chinese citizens and for Americans. As a society founded upon free enterprise, let’s not complain that today’s Chinese businesspeople are becoming too enterprising. We can learn a lesson from China: Isolation is not the answer. Instead, we must do what our nation does best: foster innovation, encourage entrepreneurship and boost productivity. That is how America will prosper.

Sy Sternberg is chairman and chief executive officer of New York Life Insurance Company. This opinion was first published in The Wall Street Journal on August 9, 2005.

The New Era of Export Compliance

By
Sections Supplements
New Regulations Will Change How many companies Do business.
Whether you export circuit boards or cranberries, your exports are under the uspices of U.S. export control laws. These regulations known as the Export Administration Regulations (EAR) or the International Traffic in Arms Regulations (ITAR) affect every product in every company in every industry.

Later this year, the new regulations will be effective. The Bureau of Census will issue new regulations (ETA Oct. 1) which will hold exporters, forwarders and carriers more accountable for complying with the export laws. According to Paul Devecchio, Devecchio & Associates, “significant changes to the regulations will impact companies currently doing business in China and will tighten controls and enhance enforcement of technology transfers to foreign nationals.

The Mass. Export Center, part of the Massachusetts Small Business Development Center Network, serves as the state’s one stop resource for export assistance. Part of that assistance is educating companies across the Commonwealth on a variety of issues including compliance and regulatory policies. The center’s Partners for Trade publication is forwarded to more than 13,000 individuals semi-annually and in 2004 the Center held over 30 training sessions. Many of those seminars involve logistics and compliance.

Export controls help protect our country and it is the obligation of every company and individual involved in international trade to adhere to them. The changes that have already been made and those that are forthcoming affect all exporters, freight forwarders and other parties involved in the process. Finally, when the new regulations become final later this year all exports will have to be filed automatically through the Automated Export System (AES). This change makes it a lot easier for U.S. Customs, the Bureau of Industry and Security (BIS), formerly the Bureau of Export Administration (BXA), and other federal agencies to track exports.

The Shipper’s Export Declaration (SED), as we know it, will cease to exist. Instead, the exporter will either submit directly to census through AES or ensure that comprehensive and accurate information is submitted to the freight forwarder by a Shipper’s Letter of Instruction for AES entry. For those products found on either the Commerce Control List (CCL), or the U.S. Munitions List, or for shipments of rough diamonds, companies are already obligated to file through AES. The CCL is controlled by the U.S. Department of Commerce and the Munitions List through the U.S. State Department.

Other changes in the regulations include much higher penalties for individuals or companies found in violation of the regulations. If your fine would have been $10,000 under the old regulations, it will be $100,000 with the new. According to Paula Murphy, director of the Center in Boston, “violations may include failure to file, filing late, and errors in AES entries.” The regulations also provide for greaterscrutiny of transactions and broadening of enforcement authority through BIS and the Department of Homeland Security. Prior to new regulations, things were done by hand, but now with the touch of a button any one of several agencies can check on your exports. AES gives the agencies a much greater chance of identifying violations. The agencies will be working more closely toensure that detections are dealt with swiftly and that agencies such as the Office of Export Enforcement will be able to penalize companies for a variety of violations including those dealing with AES. Certain areas of AES are going to be much easier to track, so exporters should be more careful when importing data that it is correct. Some areas include:

Classification

If the product is a controlled product, make sure it has the correct Export Commodity Control Number (ECCN) and Schedule B number. Whatever you do, do not allow the freight forwarder to decide what these should be. Do the research necessary and make the decision in-house. If you are having trouble determining this information, assistance is available through a variety of sources.

In one instance, a routed freight forwarder was using the wrong Schedule B using the wrong Schedule B number for a product and after he was provided with the correct one, he did not want to correct the previous documents for fear it would send out an error message and his company might receive a violation. In order for the exporter of the product to protect themselves, it was suggested that they write the forwarder a letter requesting the change. If something does happen they have done due diligence on their end.

Valuation

Overseas custom officials have always kept a close eye on the valuation of imports, but with everyone now reporting through AES, U.S. Customs will also be able to better track the data. Companies have always been advised that if this request to undervalue merchandise being shipped is received that the exporter should explain to their customer that U.S. laws forbid them to undervalue a shipment.

License Information

Authorities will be looking for inconsistencies in licensing for products. Make sure if your product is controlled either by ECCN or ITAR that the information is listed correctly.

U.S. Principal Party of Interest (USPPI)

The USPPI shall be reported as the address or street location (no post office box number) from which the goods actually begin the journey to the port of export.

For shipments with multiple origins, report the address from which the commodity with the greatest value begins its export journey.

Ultimate Consignee Information

The ultimate consignee is the party that the exporter knows to be the end user. This is an area that is going to received greater attention in the future. If you know the name of the end user, even if it is being shipped from a subsidiary or distributor, make sure you indicate it on your AES entry Also, make sure that you put the Destination Control Statement on all your commercial invoices. The statement reads as follows: e.g,

These commodities, technology, or software were exported from the United State in accordance with the Export Administration Regulations. Diversion contrary to U.S. law is prohibited.h

Record keeping Requirements

Current regulations indicate that the exporter needs to maintain copies of their SED, airway bill, or bill of lading, purchase order, commercial invoice, and any related licensing information for a period of five years. The new regulations, while doing away with the SED, now requires you to keep the ITN number for that same period of time. advised keeping everything as it relates to a particular shipment. If you gave the forwarder a Shipperfs Letter of Instruction, I would keep it to show anyone questioning an AES entry what was the actual information that was given.

While not required, it is recommended that companies develop an Export Management System (EMS). This process will assist companies in making sure that their exports and export decisions are consistent with the EAR. The more a company exports, the greater the need for the system. If a company has more than one division, it is highly recommended in order to make sure that everyone understands the importance of the regulations and that various departments are consistent in record-keeping and documentation.

Again, this fall the Mass. Export Center will be holding a variety of seminar related to compliance, regulations and AES. For information on upcoming Partner for Trade seminar, go to ww.mass.gov/exports/pft.htm.

P. Ann Pieroway is program director of the Western Mass.
Massachusetts Export Center;(413) 552-2316;[email protected]

Growth Policies

By
Sections Supplements
Rick Black Sets an Aggressive Course for TD Banknorth Insurance
As Rick Black commenced a job search last spring, near the end of his 17-year stint with Marsh Inc., the insurance brokerage unit of financial services giant Marsh & McLennan Cos., TD Banknorth Insurance wasn’t on his radar screen — not even a blip.

“I asked a friend in the business what he would do if he was going to start all over again but stay in insurance,” Black recalled for BusinessWest. “He said, ‘you’re going to laugh harder than you’ve laughed before … but I’d take a long, hard look at Banknorth.’

“He was right — I laughed,” Black continued, noting quickly that while he hadn’tconsidered TD Banknorth Insurance Group, the 44th largest insurance broker in the country — with $55 million in annual revenue, compared to Marsh’s $6 billion — he did eventually take a look, and really liked what he saw.

“This was a company clearly moving in the right direction,” said Black, who became president of anknorth’s Massachusetts Region, headquartered in Springfield, in late May. In that capacity, he will direct a multifaceted effort to grow the division and gain market share in a business that is seeing profound change.

His general strategy is to help expand TD Banknorth’s footprint across Massachusetts — and the Northeast — and to grow each aspect of his division — personal lines, small commercial, and the mid-market segment. He will do so through implementation of a shift in business philosophy — from being an insurance agent to acting, as he put it, as a business consultant.’

“By doing so, we can forge much better relationships with our clients,” he said. “This is a somewhat different approach that will help us create more value for our many types of customers.”

BusinessWest looks this issue at the course Black is setting for Banknorth’s Massachusetts division, and how he hopes to take full advantage of the parent company’s aggressive, entrepreneurial way of doing business.

Background Check

When Black was working as second vice president of The Travelers in the mid ’80s, he served as part of something called the Business Diversification Group. This was a team that developed a diversified offering of insurance and banking products that were to be bundled and distributed through the company’s large-employer market.

“It was a little ahead of its time,” he told BusinessWest, adding that it would be several years before this type of product would be commonplace within the financial services industry. Today, he explained, diversification and specialization are the watchwords in an industry where companies can really no longer be all things to all people.

Black has observed a great deal of change in his 30-year career in insurance and financial services, including the demise of Travelers and many other former stalwarts of the industry.

He comes to TD Banknorth from his post as product and development leader for Marsh & McLennan’s Hartford office. He took that position in 2004, just as an investigation of the company by New York Attorney General Eliot Spitzer was unfolding. Spitzer was probing allegations that Marsh brokers were rigging a supposedly unbiased bidding process in favor of insurers that provided the firm with what are known as ‘contingent commissions,’ or what the attorney general considered kickbacks.

Spitzer eventually filed suit against Marsh & McLennan, a development that sent its stock plummeting and eventually led to a $750 million fourth-quarter loss for the company and dramatic changes and cutbacks across the board.

“I knew it was time to move on,” said Black, who, like many Marsh executives, left to seek higher ground.

He found it within the TD Banknorth Insurance Group, the Portland, Me.-based insurance arm of Toronto-based TD Banknorth. As director of the Massachusetts division, he succeeds Joseph Fico, who became CEO of the insurance group earlier this year.

Black said that, upon heeding his friend’s advice to look into the company, he learned that, while Banknorth is small by Marsh’s standards, it has strong growth potential.

“It has a breadth and a depth that would rival some of the giants in this industry,” he explained. “This is the 44th-largest insurance agency in the country, and yet its capabilities would rival some of those in the top 5.”

Black said there are many things about the company that attracted him, including conditions that would enable him to “make a difference,” as he put it. And then, there’s the matter of the company’s entrepreneurial nature.

“It’s about as entrepreneurial as you can get with an entity that is part of a larger corporate organization,” he explained. “We’re in the infancy stages of building a culture, building a value proposition, and building a capability that will truly bring value to a customer beyond what they can garner from a local agent.”

When asked to elaborate on the company’s entrepreneurial nature, Black said this trait applies to everything from acquisition of other agencies to new-product development, to cultivation of the ‘business consultant’ mindset that he described. And, moving forward, he intends to move aggressively in all three areas.

Indeed, as the Banknorth Insurance Group works toward maintaining and improving its 12% growth rate from last year and expanding its territorial footprint — the New York/New Jersey area is the latest target in a move that coincides with TD Banknorth’s acquisition of Hudson United Bank — Black will focus specifically on growing market share in the Bay State.

The Massachusetts division has several offices, said Black, listing facilities in Springfield (the former Palmer Goodell agency), Methuen, Topsfield, a small office in Boston, and three locations on Cape Cod, a main office in Orleans and two satellites in Brewster and Dennis. Throughout that network, which he intends to expand through organic growth and acquisition, Black wants to leverage the many competitive advantages afforded by being part of the Banknorth group.

As one example, he mentioned a broad paradigm shift with regard to how the company approaches business.

“To go after individual clients on a policyby- policy basis may not necessarily be the best way for us to proceed,” he explained.

“If we can aggregate groups, whether they’re employer groups, such as a case where we can sell personal lines to a large-employer group, we can drive a better deal. “If we can aggregate small commercial businesses into groups, such as a self-insurance group, we can create better value for those customers,” he continued. “That will be a clear focus of ours as we move forward; we want to look at alternative ways to solve problems for businesses by aggregating.”

As it looks to grow market share in Massachusetts, Banknorth will make acquisition a key part of that strategy, said Black, adding that as the company adds agencies, it will also bring to bear a different model, a different support mechanism, and new technology needed to achieve established goals.

As an example, he pointed to the Cape,where Banknorth acquired an agency with a long history in the community. In addition to changing the name — a move that drew some criticism in a tradition-laden area, the company also changed the approach to doing business.

“To be successful, we knew we were going to have to do things differently,” he said, eferring to a strategy to aggregate the small businesses that dominate the Cape economy. We became an old-time agency doing business in a very different way.¡± In a broad sense, this is what Banknor this doing across the state and the Northeast, he said, adding that agencies cannot survive if they try to do business as usual.

The Bottom Line

In general, Banknorth wants to continually reshape its focus ¡ª and its business strategy ¡ª to one that is more concerned with solving problems than selling insurance and other products.

This is the way the financial services industry is evolving, said Black, and it is a pattern that will continue in the years to come, as individual companies and industry groups look for value and, as he mentioned, a business consultant.

In this environment, companies that can blend deep resources with an innovative, entrepreneurial mindset have a clear advantage over competitors, especially the smaller agencies that are disappearing from the landscape, said Black.

" We can do many things that those smaller agencies can he explained. Wehave the resources and the imagination to bring real value to our customers and be a leader in this industry.

This is what Black saw in the Banknorth Insurance Group when the company did eventually work its way onto his radar screen.

George OBrien can be reached at[email protected]

Financing: It’s Not All About Interest Rates

By
Features
There Are Many Factors that Determine if a Loan Package Works for You
Obtaining a commercial loan from a financial institution can be complicated, and it requires substantial consideration.

A bank traditionally proposes terms that are necessarily protective of its own best interests, so the borrower must be very careful to do the same. Unfortunately, many borrowers make their decision to sign on the dotted line by a sole factor, the interest rate.

Basing one’s decision on this sole criterion can be a dangerous mistake. Many other factors should be carefully considered before a commitment letter is signed, sealed, and delivered, as many of the terms may be negotiable.

First and foremost should be a careful evaluation of the loan officer, who should be someone with whom you are comfortable and share an open and honest mutual respect. He or she must have the ability to understand and the desire to care about your business. The lines of communication must be strong between the two of you, and if you find that you are not comfortable with him or her during the loan application process, you may want to consider asking for another representative or, if necessary, consider another financial institution.

Collateral is also an important consideration when evaluating loan terms. Whenever possible, it is recommended that business assets be utilized before personal ones. In the event that business assets cannot substantiate the loan amount requested, personal assets may have to be pledged as additional security. Items such as equipment, furniture, fixtures, inventory, accounts receivable, and related real estate should be considered. It is also important to note that the definition of what constitutes eligible accounts receivable and eligible inventory can vary from one financial institution to another.

Carelessly crafted loan terms can leave the borrower without options in the event that the borrower needs additional financing.

For example, one financial institution may look to a specific percentage of a business’s inventory as eligible collateral, specifically excluding old or obsolete collateral. Accounts receivable can also be utilized as collateral, but again, what constitutes eligible accounts receivable must be defined. For example, must they be earned less than 30 days, 60, days or 90 days? These conditions vary among financial institutions, so it is paramount to clarify them at the onset of the agreement.
Another factor that may be negotiable is marshaling. This ensures that business assets be utilized first rather than personal assets, in order to pay any indebtedness incurred, in the event that your business encounters future problems and a liquidation proceeding is necessary. Marshaling can designate the order of liquidation of assets, leaving any personal assets intact as long as possible. The failure to discuss this issue at the outset of the loan process will give the bank the option to elect which assets it will first proceed against when the borrower defaults.

Still another significant aspect of a loan is the covenants designated within the loan-commitment letter. These covenants, which may be both affirmative and negative, govern specifics that the borrower can and cannot do throughout the term of the loan. They may run the gamut from predetermined salary limitations for the company’s principals, to prohibitions on future acquisition of capital assets, and also prohibitions on additional borrowing from third party lenders. Carelessly crafted loan terms can leave the borrower without options in the event that the borrower needs additional financing, and is prohibited from obtaining it, which may tend to preclude a company’s ability to expand.

Covenants, such as maintaining a minimum net worth, or loan balance to fair market collateral value, i.e. equipment or real estate, effectively provide a report card for the business. They establish financial expectations that must be met on an annual basis as a condition of the loan. Therefore it is important to include an accountant who will be able to review these covenants in order to provide reasonable assurance that they can be complied with on a timely basis.

An attractive interest rate may initially be very seductive for a borrower; however, evaluating a business loan upon any single standard may tend be dangerous because this provides the potential that the loan may not be advantageous to you on an overall basis. By focusing on a lower interest rate you may be overlooking other critical aspects of the loan, which may be far more harmful than an extra point or percentage of a point. One key factor to keep in mind is that virtually all terms and conditions of the loan commitment may be negotiable. No business should enter into a loan commitment with a financial institution without the benefit of professional advisors, who will work to protect its best interests.

Gary Fialky is chairman of Bacon and Wilson’s Corporate Department. His practice is concentrated in Business and Banking Law, with an emphasis on business formations,as well as the purchase and sale of businesses and the representation of financial lending institutions; (413) 781-0560;[email protected]

Gary Breton is a member of Bacon & Wilson’s Banking and Finance Department whose major emphasis of practice includes representation of financial lending institutions,as well as both individual and businessborrowers. He also represents numerous business clients in the startup, purchase and sale of businesses; (413) 781-0560;[email protected]

Making Your Case as an Employer of Choice

By
Sections Supplements
Reputations, Like Careers, Have to be Managed
What if there was something that could drive superior job candidates to your door instead of having to search them out? There is.

It’s called your reputation and it’s the best way to attract the people you need, even before you need them.

A positive reputation is built on delivering on your promises as a business entity. Have you promised your customers they’ll get their products in 48 hours? Have you promised your stockholders straightforward statements of your earnings? Have you promised the media that you’ll do your best to respond to their questions? Have you promised your employees that you will fully support them in the quest to make your products better? Then deliver.

And when you deliver, it’s time to let your reputation shine.

Reputations, like careers, have to be managed. Yes, they travel by word of mouth, but engineering that word-of-mouth is critical. I had a professor in communication school who used to thunder at us, “Whose reputation is it anyway?” Whose reputation indeed? Either you manage that reputation or someone else will do it for you and you may not like the outcome.

A few years ago, a very smart new client of mine told me that the reason they were engaging a PR firm was to help them recruit the cream of the crop among recent graduates. “We want to hire these grads but our competitors usually snatch them up before we get the chance to interview them,” he complained. “I know part of the problem is that our reputation is that we’re formal and stodgy and they simply don’t want to work at a place like that. That’s how things used to be around here, but it’s not true anymore. Unfortunately, those old perceptions seem to stick with us.”

A solid, well-planned and consistent presence in the media positions any company as a successful and dynamic place to work.

We went to work reshapeing that misguided reputation with a series of feature stories aimed at humanizing the institution. For example, the company had several highly placed executives who worked parttime because of their childcare responsibilities. A feature story was crafted on the program, which generated coverage in the local paper and their local trade press. Also, the firm aggressively went out to the media, offering its people as guest commentators on hot news, which positioned the organization as being less remote and on top of the latest developments.

And, when a large percentage of its promotions went to women, steps were taken to ensure there was a story about that in their trade press.

A solid, well-planned and consistent presence in the media positions any company as a successful and dynamic place to work. That presence comes from a combination of reactive and proactive stories that reach out to the press, along with responsive relations with the press.

Reactive stories come from a company’s daily successes, like gaining new customers, hiring new people or adding new product lines. Proactive stories come from the expertise of those in the organization. Examples of this include simplifying the impact of a new law, explaining the influence of a trend or offering tips that people might been seen as the ‘secrets’ of your industry.

Your relationship with the press comes from a combination of offering real news stories (not fluff ) and responding to their needs in a timely manner.

When all that comes together, you build the kind of reputation that positions your company in a positive light – for customers, prospects, competitors and current and future employees.

A consistent public relations strategy raises your visibility in your community, your industry and the marketplace. This kind of ongoing public relations effort makes people want to work for you because you look like a winner.

Now, who wouldn’t want to work for a company like that?

Andrea Obston is the president of Andrea Obston Marketing Communications, LLC, a Bloomfield, Conn.-based public relations and crisis management firm. It also provides media training, as well as public relations seminars and individual consultations; (860) 243-1447.

By
Departments

Electronic Medical Record Seminar

Sept. 16: The Health Care Services Division of Meyers Kalicka, P.C., will present a seminar, EMR — What Does it Mean?, at the Crown Plaza Hotel in Enfield, from 8 a.m. to noon. The program will examine the many aspects of EMR (electronic medical record) and their implications for health care companies. The registration fee is $75 per participant, and is due Sept. 9. Space is limited. To register, or for more information, call (413) 536-8510.

Ethical and Financial Issues For Women

Sept. 27: The Women’s Fund of Western Mass. and the Estate Planning Council of Hampden County Inc. will jointly sponsor an evening focusing on ethical and financial issues for women. Featuring breakout sessions on a variety of topics and a keynote speech by well-known consultant Kristi Nelson, Planning Your Ethical and Financial Estate: Take the Time to Plan the Use of Your Money — How Your Values Live Through Your Life and Beyond will take a unique, value-based approach to estate planning for women. Local speakers presenting during the program include Kent Faerber of the Community Foundation of Western Mass., alonf with area lawyers and financial planners.The event, to be staged at Western New England College, is open to the public, and pre-registration with the Women’s Fund is requested by Sept. 16. To register, or for more information, call (413) 529-0087, or visit [email protected]. The cost is $20 and includes a light meal.

Realtors Conference, Tradeshow

Sept. 27: The Mass. Assoc. of Realtors (MAR) will stage its 2005 conference and trade show, from 7:30 a.m. to 6:15 p.m. at the DCU Center in Worcester. The oneday conference, which is open to all real estate licensees, will include a trade show and education sessions for real estate agents and brokers looking to enhance their business skills and learn new specialty areas of practice to advance their careers. The MAR conference will offer a wide range of of program options for participants, including a series of sales training sessions designed to increase agent productivity, a special curriculum track on realtor technology, multiple continuing education courses, and a series of educational seminars designed specifically for broker-owners and managers. In all, the program will offer attendees up to 6 hours of continuing education credits and more than 15 educational seminars. The opening general session will feature nationally recognized real estate trainer Terry Watson, whose motivational presentation will identify strategies for achieving goals and inspire agents and brokers on how to take their business from ‘good to great.’ Registration fees are $158 for realtors, and $228 for non-members. For more nformation or to register, call (800) 725-6272.

Entrepreneurship Hall Dinner

Oct. 6: The Class of 2005 will be inducted into the Western Mass. Entrepreneurship Hall of Fame at ceremonies to begin at 4:30 at the Andrew M. Scibelli Enterprise Center in the STCC Technology park. A dinner to honor the inductees is slated for later that evening at the Log Cabin Banquet and Meeting House. Those being inducted this year are: Sister Mary Caritas and the Sisters of Providence, founders of Mercy Medical Center; Joshua Brooks, founder of the Eastern States Exposition; William L. Putnam, founder of WWLP Television, Channel 22; Mary Lyon, founder Mt. Holyoke College; Fran & Teddi Laurin, founders of Laurin Publishing; and Joseph Napolitan, founder of Napolitan and Associates. At the dinner, STCC will also present its County Achievement Awards to entrepreneurs in Hampden, Hampshire, Berkshire, and Franklin counties. There will be a reception at 6 followed by dinner at 7. For more information on the dinner or to order tickets, call (413) 755-4477. Those interested in attending the induction ceremonies,
please call William Kwolek at (413) 755-4477.

By
Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

NORTHAMPTON DISTRICT COURT

Walker Industries LLC v. West Track Corp. Allegation: Breach of contract — Failure to pay for goods sold and delivered: $5,000 Date Filed: Aug. 9

HAMPSHIRE SUPERIOR COURT

Shelton Brothers v. Noble Union Trading LTD Allegation: Breach of contract — Failure to pay for goods sold and delivered: $35,504.52 Date Filed: July 28

HOLYOKE DISTRICT COURT

Holyoke Mall Co. LP v. Rufus Inc. d/b/a Family Pet Center Allegation: Breach of contract — Failure to pay store lease: $518,674.38 Date Filed: Aug. 8

SPRINGFIELD DISTRICT COURT

Intracom USA Inc. d/b/a Intracom v. Michael Filamonte f/d/b/a ITA Computers & Katherine Filamonte f/d/b/a ITA Computers Allegation: Breach of contract — Failure to pay for goods sold and delivered: $7,139.33 Date Filed:Aug. 1

Luxottica Group d/b/a Garde Optics Inc. v. Aspen Enterprises Inc. d/b/a The Eyeglass Co. Allegation: Breach of contract — Failure to pay for goods sold and delivered: $1,686.66 Date Filed: Aug. 4

C o n s t r u c t i o n Service, a Division of Dauphinais & Son Inc. v Robert A. Parket d/b/a P & P Concrete Allegation: Breach of contract — Failure to pay for goods sold and delivered: $2,842.52 Date Filed:Aug. 5

Daniel J. Hanson d/b/a Bailey-Hanson Mechanical v. Timothy Thompson, Robert
Weiss, Round Hill Realty LLC and Eric Appleton Allegation: Breach of contract — Failure to pay for labor and materials: $6,207.95 Date Filed: Aug. 7

WESTFIELD DISTRICT COURT

Connecticare Inc. v. William R. George d/b/a Machine Tool Repair Allegation: Breach of contract — Failure to pay medical insurance premiums: $2,246.76 Date Filed: July 26

The Language of Business

By
Opinion
If you can read and comprehend this sentence … you’re fortunate.

A recently released report, authored by MassINC (the Mass. Institute for A New Commonwealth) indicates that growing numbers of people in the state’s workforce — or who would like to be part of that workforce — cannot read it, and this simple fact may have dire consequences for the state.

The report, titled The Changing Face of Massachusetts, reveals that the state’s immigrant population is rising, and a significant proportion of these new arrivals has difficulty with the English language. These are troubling findings, because there has been significant out-migration from the Bay State in recent years — for reasons ranging from its cost of living to its liberal lifestyles — and the Commonwealth is relying heavily on immigrants to meet the needs of an economy that, when we last checked, was still expanding and adding jobs.

If large numbers of these immigrants are unable to gain a quick, reasonable grasp of the English language, that economy could sputter.

Bill Ward, director of the Regional Employment Board of Hampden County, knows this. That’s why he views the report as both a wake-up call and, hopefully, a catalyst for action on a statewide level to direct more resources to the task of improving proficiency in English across the board.

We share that view, and urge elected officials and economic development leaders to take the initiative on this issue.

The numbers within the MassINC report tell an intriguing story. For starters, the foreign-born share of the state’s workforce nearly doubled between 1980 and 2004, from 8.8% to 17%. Since 2001, the state’s labor force is estimated to have grown by less than 1%, and would have actually shrunk if it were not for the new immigrant populations.

What those numbers say is that the state is becoming increasingly reliant on immigrants for its continued economic health and well-being. And the report hints strongly that the state should be aggressive in helping to train and educate these people — especially in the matter of the English language.

Indeed, the report’s authors refer to proficiency in English — or lack thereof — as the new fault line separating those who succeed in the so-called New Economy from those who don’t.

But while the report’s findings are eye-opening, they are also somewhat misleading, at least when it comes to the communities of Western Mass., specifically Springfield and Holyoke.

Those two cities are not listed anywhere near the top of list of state cities and towns with high immigrant populations. These communites do, however, have large populations of Puerto Ricans who, because they are citizens of the United States, are not considered immigrants. But many of them do have problems reading, writing, and speaking English.

And Ward knows that this fact is contributing to a disconnect in the local job market — specifically a situation where people are looking for work and can’t find it, and some companies need qualified people and can’t find them.

Improved proficiency in English could help remedy this situation, but waiting lists for English as a Second Language (ESL) classes are currently longer than the lists of those currently enrolled.

What’s needed, according to The Changing Face authors, is a public-private partnership that will educate residents, the business community, and the Legislature on the pressing need to make proficiency in English a top priority. We support those efforts, and hope that if and when such a partnership gets down to business — literally and figuratively, it does leave Western Mass. behind.

Lawrence, Lowell, Chelsea, and other Eastern Mass. communities have much higher populations of recent immigrants, but Springfield, Holyoke, and other Pioneer Valley communities share the same overriding problem: English.

As the MassINC report indicates, the face of the state’s workforce is changing. The Commonwealth and its business community must acknowledge this fact and adjust accordingly.

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