BusinessWest Staff, Author at BusinessWest

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The health care industry faces unique challenges when beginning new marketing initiatives, brought on by the service-related qualities of the sector and a culture shift that has many organizations struggling to define their very identities.

Often, an attempt with good intentions is effective when unrolling a new business practice.

But when it comes to the complicated topic of branding a health care entity, some say the old college try could do more harm than good.

Branding, or brand development, is an increasingly prevalent aspect of many marketing initiatives across several industries. Once utilized primarily by those in the retail, financial and legal sectors, branding attempts to define a business by illustrating and calling attention to specific services, strengths, and attributes through a number of initiatives. Those can include advertising, logo design, mission statement and tag line development, sales or event promotions, publicity, internal training, and much more, but all draw from a common, sustainable theme.

Several industries are now treating branding and rebranding as the most important aspect of their marketing endeavors, and the health care industry is no exception.
Many marketing professionals contend, however, that health care is following the lead of many other industries when it comes to brand development, and still has a long way to go in terms of understanding effective branding initiatives that resonate within a large audience.

There is the issue of marketing within health care in general, for one; some, including John Bidwell, president of Bidwell ID in Florence, say that in the past, providers have shunned the practice of marketing health care services.

“The uncertainty of health care plus the explosion of information on the Web has made for well-informed patients,” he said. “Marketing has traditionally been looked down upon, but now providers are realizing that the better-informed patients are making choices on where to go, and that they have to work to retain and attract those patients.”

There’s also the time and money required to roll out a new branding initiative, and the already lean resources of many health care facilities can be prohibitive. Plus, according to Suzanne Hendery, corporate director of Marketing and Creative Services for Baystate Health, the very nature of health care as a service-related industry can make pinpointing those tangible aspects of the business difficult.

“Branding for health care entities differs from product-related businesses,” she said. “In a service business, outstanding people are your key to success, and recruiting and retaining the best of the best can be a challenge, especially when there are national shortages in many health care professions.”

And finally, with health care still bringing up the rear when it comes to branding and marketing in general, there is the problem of the learning curve – knowing what branding is, what it will entail, and how to best implement it within a given facility and, for that matter, a unique region like Western Mass.

John Garvey, president of Garvey Communications in Springfield, said effective branding could, indeed, enhance the overall quality of health care itself.

“But attempting to brand … that can create more dangers than opportunities,” he said.

The Product of Wellness

That’s true on the national level, but even more so on the regional level, where a facility’s competition could be quite literally across the street, and budget pressures are felt that much more.

As Bidwell noted, the national health care industry is one that has historically shied away from big marketing blitzes. He said that was because, for a long time, the work spoke for itself. Patients didn’t travel far for their care, they didn’t shop around for the best possible physician or program, and they stuck with one doctor – their doctor – often for their entire lives.

But all of that has changed. “My general feeling is that health care is going through a huge cultural shift,” Bidwell said. “In the past, the medical industry was looked at sort of like a religion – people stayed with one doctor and did what they were told. Patients weren’t really proactive, but they’re becoming increasingly so. They don’t mind traveling so much, and locally there are many choices to pick from.

“Also, the rising uncertainty of health care costs is spurring much more shopping around,” he continued. “So overall there have been huge changes across the board in health care, and branding is becoming a response to that. What health care businesses are having to do now is recognize that they need to pay attention to their brand in order to stay competitive.”

And when it comes to defining branding, Bidwell noted that the term does indeed extend across several aspects of marketing and development within a given company or facility, and that will likely prove to be the biggest challenge for health care providers.

“It’s not just designing a new logo,” he said. “Branding begins as an exercise in finding out who you are and where you want to go. Businesses have to be brutally honest with themselves in regard to what they have been.

“My feeling is that health care in general is not on the cutting edge of branding,” he continued. “That is changing, though, and I think health care professionals will catch up fast. They are a smart group, and once they recognize the importance of branding and put in the resources, they could do very well.”

A See-through Message

Garvey added that branding can be defined as a promise, which focuses on specific attributes of a company or a particular service. Health care businesses typically want to pledge the best care to their patients and clients, and that is where branding usually begins for them.

But beyond that, he agreed with Bidwell that branding signals a major shift in marketing, which creates the need to place the most value on concrete, objective aspects of a business, not vague sentiments, and also an added challenge for all health care providers.

“The value a facility is trying to convey can’t be superficial,” he said. “A branding initiative can’t focus on something like, ‘We Appreciate You.’ It has to center on bringing out core attributes of a company that are unique.

“But,” Garvey continued, “the message also needs to be sustainable, and that’s where it gets more complex for businesses in health care.”

The reasons why are varied. First, a message that is sustainable must also keep an audience’s interest for a long period of time, and not mirror the messages of competitors too closely. It must be comprehensive, with all aspects tailored to share some common bond – a logo, use of the same, yet still fresh, fonts and design within ads, and the constant use of a tag line or mission statement are just a few examples. In addition, a company’s brand must also help to describe current advances at a given health care facility, thus proving that a business is, indeed, ‘keeping up with the Jones’.’

But those reasons are complicated, Garvey said, by the increased importance placed on transparency in health care – the release of information to the public regarding internal practices or a facility’s financial and patient-related statistics.
“If branding is a promise of something real and definable, then what happens if somehow that promise is broken?” he mused. “That danger, in relation to branding an institution, is that much more real as more information regarding quality in health care is made available to the public. The accountability becomes that much more important to marketing initiatives. It makes branding in and of itself risky.”

Bidwell agreed, adding that failure to address increased transparency within a given health care providers’ marketing messages could have a detrimental effect on a provider’s bottom line.

“Health care (providers) must left their actions like never before, and can’t hoard information,” he said. “The industry must explain what it does and be forthcoming with data. If not, the information will get out anyhow and the provider will simply get a reputation as a stonewaller. ‘What are they hiding?’ people may ask.”

Branding a Region

Still, there are some national health care entities that represent the best examples of effective brand development; Garvey cited Dana Farber and the Boston Children’s Hospital as two examples, based in part on their strong ties to nationally-renowned programs. But he added that local institutions face unique hurdles, created by increased competition within one of the region’s largest sectors. It’s important to remember, he said, that no one branding strategy is a cure-all for a health care provider’s marketing ills, and moreover, national standards for brand development differ greatly from those specific to Western Mass.

“Institutions like Dana Farber can lean on one major strength, like the Dana Farber Cancer Program, and create incredibly effective brand recognition based on that aspect,” Garvey explained. “But on the local level, health care providers are still facing the challenge of translating to the public that they can be all things to all people. Currently, what we’re seeing a lot of regionally is ‘We Got,’ and ‘We Have,’ in reference to new staff, programs, equipment … that’s the big branding message that providers are using now, and it can be effective as long as providers are consistent, clear, and able to cut through clutter with the message they’re sending.”

Garvey noted further that many institutions and smaller health care providers and businesses are quick to make their staff, including physicians, nurses, and others, a core piece of their materials, and that has proven to be an effective route.

“There are rock stars in the health care world, especially when it comes to cancer care, surgical technology, or cardiology, for example,” he said. “Those are the people that are famous for breakthroughs or for treating celebrities, and some national providers have used them as part of their brand with good results. We might not have those types of physicians here, but calling attention to familiar faces still works for us on a different level.”

Bidwell added that Western Mass. also excels in touting the benefits of a more holistic approach to medicine, and that includes spotlighting health care professionals in addition to physicians, as well as programs that draw from many different disciplines. He said that could stem from the unique history of the region.
“Many utopian societies were established here,” he said. “My gut feeling is that legacy is still here on some level – marketing of a more holistic approach to wellness is appearing here more than elsewhere.”

Regardless of the message, however, it must also be filtered through diverse media and means of communication, and touch every aspect of a business, reflecting a facility’s overall mission statement while remaining rooted in the tangible.

Indeed, a rebranding initiative doesn’t stop at a new logo design or a print ad campaign. Rather, it extends into television, radio, and Web advertising; sales strategies; internal and external publications; public relations initiatives; narrow-casting, or reaching niche audiences through various means, and other marketing tools.

The Sum of All Parts

Hendery told BusinessWest that increased attention to branding within the health care sector signals acceptance of a larger marketing shift, both nationally and regionally. But she stressed that an innate understanding of what is involved in brand development beyond marketing is necessary before any business or facility can launch a branding campaign.

“Because the term ‘branding’ is used so often, some don’t understand all that it means,” she said. “Branding is not advertising, and not just marketing and PR. It is the job of everyone in the organization, because when branding is done right it is fundamental to all you do, tied to your mission, vision and measurable goals – linked to every action you take, internally and externally.”

She said brand development extends across an entire business, affecting everything from employee involvement to quality control.

“For any business, before a brand is developed, the organization must have a number of solid business principles in place, a strong vision, identified values, service standards and operating principles that employees are accountable for, and measurable goals for the future based on a sound strategic plan,” Hendery explained. “Also key is a service-recovery program – because the way you treat a customer when a problem has occurred is where you gain or lose their loyalty and confidence – and a reward and recognition program for those employees who go above and beyond in exceeding the service standards. You also need a strong senior management team who easily lives and defines the best of the brand, and communicates often with employees and the community.”

Bidwell added that, to meet those needs, a healthy amount of research is required – of a facility’s strengths and weaknesses, of the population it serves, and of the practices of its competitors, to name a few.

“Of course, the amount of research will depend on your budget and size, but you need enough to get a realistic understanding of how you are perceived so that you can better align your communications with where you want to go,” he said.

And all of those issues must be addressed before any ad copy is drafted, or a new logo is even considered. But despite challenges, more health care businesses are creating a brand as one way to stay viable in an increasingly competitive industry.

Patients and Prospects

“There is a whole debate over whether or not branding is even the way to go for the health care industry,” Bidwell said. “ But I would contend that when it comes to an increasingly educated public making choices as to where they’re going to go for their care, marketing who you are and what you’re about is something a health care provider simply can’t ignore.”

When dealing with a more educated public, though, the health care industry is well served to keep in mind that in terms of branding, most are still students.

Jaclyn Stevenson can be reached at[email protected]

Holyoke’s Big Pitch

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When Mike Sullivan became Holyoke’s mayor in January, 2000, he vowed to be diligent in pursuit in new businesses and jobs for this historic industrial city.

“There were a lot of mayors complaining about jobs leaving this area and going to other places,” Sullivan told BusinessWest. “What I discovered quickly is that you have to learn how to fight back and be aggressive in getting people to come to your city or stay there when they could go somewhere else.”

And aggressive is just what Sullivan and Jeff Hayden, director of the Holyoke Office of Economic and Industrial Development, have been. Together, they have helped inspire and facilitate a number of new development initiatives and a building boom of sorts in the city’s Ingleside section. This growth spurt has included everything from a new Dunkin Donuts to a new Hilton Homewood Suites hotel — and most everything in between.

“We’ve worked hard to sell Holyoke,” said Sullivan, re-elected in November to a fourth term. “We’ve let people know that we’re open to ideas and would welcome anything that makes sense for this city and this region.”

Sullivan would the first to admit that he wasn’t thinking about minor league baseball when he first started selling the Paper City — or considering things that made sense — but that is one of the many projects that have come to the forefront.

Actually, baseball is only one component of what is now projected to be a $120 million project that could significantly alter the landscape of the Ingleside area and bring hundreds of new jobs to the city.

Mandalay Sports Entertainment Group of California has put on the table plans for a multi-faceted development that includes a Double-A baseball team and a 6,500-seat stadium, a 133-room hotel, 75,000 square feet of office and retail space, 73 high-density single-family homes, 255 market-rate apartments, and three acres of surface parking.

Mandalay and the city are hammering out a memorandum of understanding, or MOU, on the project, but much remains to be done to bring it from the drawing board to reality — everything from asssembling a site to receiving the requisite approvals to move the Eastern Division’s Erie (Pa.) Seawolves to Holyoke for the start of the 2008 season.

But the venture is moving forward — as are several other projects in the city, from a comprehensive new health center in the downtown to an expansion of the power-grid management company ISO New England.

“What we’re sending out is a broad message: ‘come on in and take a look at Holyoke,’” said Hayden, “and we’re sending it to everyone. Baseball is just one of the byproducts of that effort.”

BusinessWest looks this issue at the many facets of Holyoke’s baseball project, and how the initiative reflects the city’s aggressive efforts to expand and diversify its jobs base.

Covering their Bases

As he talked about ongoing efforts to promote Holyoke, Hayden said city officials have plenty to sell.

First, there’s ample land, much of permitted, and also hundreds of thousands of square feet of former mill space available, most of it at attractive lease rates — at least when compared to what’s available in other cities. There’s also comparatively low utility costs, thanks to some imaginative programs created by the city’s municipal utility, a location just off I-91 and near the Turnpike, and even the Holyoke Mall, which attracts an estimated 17 million visitors a year.

“Think about it,” said Sullivan. “Yankee Candle attracts maybe 2 million people a year; the mall draws 17 million! And those license plates are from all over — Connecticut, New York, even New Jersey. People are driving over 100 miles to come to Holyoke. That’s quite a drawng card.”

It was the sum of these various parts that attracted Mandalay, the Los Angeles-based corporation that has emerged as one of the premiere national sports entertainment companies, owning and building professional sports franchises and venues across the country.

The portfolio includes the Las Vegas 51s, Triple-A affiliate of the Los Angeles Dodgers; the Daytona Dragons, Single-A affiliate of the Cincinnati Reds, which counts among its ownership partners NBA legend Erving “Magic” Johnson, and the Double-A Frisco (Texas) RoughRiders, a joint venture with Texas Rangers and Dallas Stars owner Tom Hicks’ Southwest Sports Group. Also, the Haggarstown Suns, the Single-A affiliate of the San Francisco Giants, and the Erie Seawolves.

It was a desire at Mandalay to find a less climatalogically challenged location for the Seawolves — Erie is visited by significant rainfall and early-spring snow that results in numerous postponements — that prompted the company to consider other locations, said Sullivan, noting that a number of factors contributed to Holyoke eventually working its way onto the radar screen.

Indeed, the city has many of the necessary ingredients for the multi-faceted projects Mandalay likes to build, said the mayor, listing everything from a minor league baseball tradition — the city has played host to several teams over the years, most recently the Holyoke Millers, an affiliate of the Milwaukee Brewers — to strong markets for housing and retail.

Meanwhile, the city actively pursued the venture, meeting several times with Mandalay officials over the past two years to keep the city in the mix.

“We looked at this as a piece, but a very important piece, of a broad development strategy,” said Hayden. “Baseball is at the core of the project, but there is much more to it than that — it presents a number of opportunities for Holyoke, including jobs and property tax revenue.”

To use industry language, the effort to bring the project to fruition is still in the early innings. Work continues on several fronts; Mandalay must receive approval to move the Seawolves from a number of minor league baseball organizations, and also from teams currently in this market, including the Boston Red Sox. Meanwhile, the city is exploring the use of a relatively new state financing program — “District Increment Financing” — to help pay for needed infrastructure work. The low-interest loans could be used for parking, access roads, traffic lights, and other improvements.

At the same time, work continues to find a site — four locations in the Ingleside section are currently being explored — while Mandalay officials prepare to meet with executives at the Holyoke Mall to examine mutual development interests in that area.

There is also ongoing talk about how to package the new baseball venture with an existing team in Holyoke, the Giants, a member of the New England Collegiate Baseball League. Now under new management — local business owner Phillip Rosensfield acquired the team last fall — the Giants are preparing for their third season at MacKenzie Stadium.

Two minor league franchises have co-existed in several markets, including Lowell and Manchester, N.H., said Sullivan, adding that if Holyoke should add the Seawolves, they and the Giants could feed off one another.

Fielding Opportunities

The baseball project and its related components fit nicely into a broad blueprint for economic development in Holyoke that was drafted by Sullivan, Hayden, and other city officials.

Essentially, the plan calls for economic diversity — the city suffered greatly when large segments of the paper industry that gave the city its name moved out or shut down — but also the creation and retention of service and entry-level jobs.

This might run counter to the goals of some major metropolitan areas, which are instead focused on high-tech or bioscience jobs, said Sullivan, but in Holyoke it is the key to continued, sustained growth.

“Some people have scoffed at the notion of entry level or service jobs, but they are the backbone of every economy,” said Sullivan, adding that they are especially needed in a community like Holyoke, a blue collar city with a large immigrant population. “These are bread-and-butter jobs, and they’ll be there when the economy changes or declines.”

The resiliency of service jobs is why Holyoke is actively pursuing the baseball project, which will bring some white-collar positions but mostly entry-level jobs, said Hayden, and it’s also why the city would consider further expansion of the sprawling mall.

“These are the kinds of jobs that

Holyoke and this region need,” he said, noting that an estimated 16,000 of the 24,000 jobs in the city are filled by those who live outside the community. “These are solid opportunities for area residents who need jobs or second jobs.”

Sullivan concurred.

“People can say that retail stinks, but they should take a closer look,” he explained. “Look at the mall; there are hundreds of stores there, and each one has a manager and most have an assistant manager; those are attractive jobs.

“People say we need to attract more nanotechnology jobs,” he continued. “Maybe we do, but every city needs more of those bread-and-butter jobs.”

And this has been the focus of many recent initiatives in Holyoke, from creation and recent expansion of the Holyoke Health Center, located in the former Steiger’s building on High Street to efforts to fill the former Ampad building on Jackson Street with an array of smaller manufacturers.

“There are a number of things coming together,” said Hayden, “that are part of a vision to stabilize our tax base, bring new jobs here, and make Holyoke a more vibrant city.”

Home Run

Sullivan recounted for BusinessWest a recent visit he made to the Homewood Suites facility, which has quickly taken shape over the past few months.

He stopped in unannounced, and was not recognized by the on-site manager.

“I told her I was the mayor of the city and I was checking in to see of they needed anything or if I could help with any matters,” he recalled. “She couldn’t think of anything, but seemed a little surprised that the mayor would be taking an interest like that.”

But this has been Sullivan’s style since he took office. He says it’s part of being aggressive, part of his efforts to “fight back,” as he put it. They have paid off with new businesses and new jobs — and the promise of many more.

Indeed, if the current baseball proposal becomes reality, then the city would really have a reason to cheer.

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

Taking Charge

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ISO New England was created to manage the region’s electrical grid so power will always be available to consumers. In doing so, the Holyoke-based company has also made the electricity marketplace more competitive, reducing power costs and spurring the development of more innovative, efficient technologies. Now the non-profit firm looks to a future charged with promise.

When it comes to the role played by his company, ISO New England, Steve Whitley thinks in big terms.

“We keep the lights on in New England,” said Whitley, the company’s chief operations officer.

It’s an accurate job description. As a regional transmission organization (RTO), Holyoke-based ISO New England manages the six-state region’s bulk electric power system, directing the generation and flow of electricity across its interstate high-voltage transmission lines. The company also oversees New England’s wholesale electricity marketplace, where power is bought, sold, and traded on a daily basis.

It’s a niche that does indeed keep the power flowing – a scenario that wasn’t always guaranteed in years past.

In November of 1965, some 30 million people lost power across the Northeast in one of the nation’s worst blackouts. Concerned about the possibility of another such incident, the region’s power companies formed a series of “power pools” to boost the reliability and connectedness of the electrical grid – and the seeds of independent system operators, like ISO New England, were planted. What would bloom was a completely different way of doing business in electricity.

Today, the non-profit company, which is funded by a tariff on power sales, manages the electrical supply of 6.5 million households and businesses across its six states, all from its headquarters in Holyoke – which are currently being expanded.

This issue, BusinessWest takes a tour of the past 40 years of electrical history in New England, and delves into the crucial role of ISO New England in brightening people’s lives.

Seeing the Light

ISO New England has its roots in one of the original power pools formed in the years following the blackout. The New England Power Pool (NEPOOL) was created in 1971 to foster cooperation among utilities in the six-state region.

In 1965, the regional electrical system was weakly networked compared to what it is today. In fact, Maine largely avoided the historic blackout because its ties to the rest of New England were so unstructured.

During the next three decades, NEPOOL created a regional power grid that has grown to include more than 350 separate generating plants and more than 8,000 miles of transmission lines today, all interconnected to ensure that New England never again endures a region-wide power failure.

“In 1965, you had a loosely connected set of individual utility companies supplying their local customers, and interconnections between these facilities were primarily a matter of convenience and resource sharing,” said Gordon Van Welie, CEO of ISO New England. “Today, the transmission structure is like an interstate highway system moving this commodity called electricity across state borders, and connected to that highway system are producers shipping electricity to those willing to pay for it.”

But at the same time, power costs remained high and generators had little incentive to improve service or develop new technologies under the electric power industry’s system of regulated monopolies. In fact, by the 1990s, New England’s electric rates ranked among the nation’s highest, and the region’s power infrastructure was becoming increasingly antiquated.

As a result, the Federal Energy Regulatory Commission (FERC), on orders from the U.S. Congress, began to allow the deregulation of wholesale electric power, believing that competition would provide a lift to the industry, much as it had in the transportation, telecommunications, and financial services industries.

FERC essentially created a level playing field for competitive markets, encouraging states to force utilities to sell off power plants and ensuring equal access to transmission grids. The shift also aimed to eliminate regulator-set prices in favor of market-driven prices.

It accomplished this through the creation of ISOs, which were given the responsibility of overseeing the wholesale electricity market through a daily competitive bid process – a stock market for power, as it were.

“We had to have an ISO, so that generators of power would compete with each other,” Whitley explained, emphasizing that these generators can no longer be owned by the utility companies.

Working with the generators, utilities, and public power companies that make up NEPOOL, ISO New England implemented wholesale markets in 1999. Each day, generators of electricity essentially bid for the right to sell power. ISO New England examines the bids and accepts or denies them based on how much power is being offered at what price. Then it coordinates the distribution of power.

Since its creation in 1997, ISO New England has led the nation’s most extensive restructuring effort of electricity markets. Today, 88% of the power generation in the six states is unregulated, the most of any region in the United States. As a result, more than 260 market participants complete more than $7 billion in wholesale electricity transactions annually, about a quarter of all power sold in the region; the rest is sold through negotiated, long-term contracts.

Price and Service

Obviously, any market that shifts from regulation to competition will offer benefits to the end consumer – particularly in the area of price. Indeed, electricity prices have declined by 11%, on average, in New England since 2001.

“One of the primary purposes of introducing wholesale electrical markets was to shift the investment risk from consumers to investors,” Van Welie told BusinessWest. In the past, he explained, when utility companies owned both the transmission and generation sides of the power business, consumers bore the full risk of their investments, which was reflected in rising electric rates.

“There was dissatisfaction with that over the years, especially with cost overruns on large projects. So we moved to a system based on wholesale markets and competition,” Van Welie said, adding that the competition resulted in much more efficient allocation of resources, in addition to price breaks for consumers.

The other benefit of open markets has been a renewed investment in power-generation across New England. Since opening the wholesale markets in 1999, the region’s generation capacity has increased by 40%, which in turn boosts the reliability of the grid – the reason ISOs were created to begin with.

“We’ve added more infrastructure than any other region of the country because we have a good plan in place and great input from the states and our partners,” said Whitley. “New England is traditionally the most difficult place in the country to get anything built – but we’re getting it done.”

As a further benefit, the new power plants typically use more efficient and cleaner-burning natural gas technology – and produce fewer pollutants – than older plants. This, in turn, has reduced emissions of nitrogen oxide, sulfur dioxide, and carbon dioxide, which can be health or environmental hazards.

This is an example of the long-term thinking made possible by the ISO framework, Whitley said. In fact, planning ahead is one of the company’s main responsibilities.

“Our mission is the reliable dispatch of the power system and ensuring its long-term reliability,” Van Welie said. “In order to do that, we produce a regional system plan every year. This plan looks 10 years into the future and forecasts where we think our electrical function will be and also illuminates where we need to strengthen the underlying infrastructure and increase generation.”

For example, Whitley explained, the metropolitan Boston area and Fairfield County on the southwest corner of Connecticut have increased electrical usage the most and required the most infrastructure growth among all regions of New England.

oreseeing areas of need and encouraging capital investment in those areas is crucial to the company’s success.

ISO New England makes all these decisions free of conflicts of interest, as all its officers, board members, and employees must be free of any ties to utility companies, said Ken McDonnell, corporate communications officer. “That allows us to be completely independent in our decision-making.”

High-powered Growth

The electrical market in New England isn’t the only thing that’s expanding, however.
ISO New England has itself embarked on a building project that will house all its operations in two buildings on one Sullivan Road property. Three years ago, the company was forced to separate its administrative and operational divisions in two separate locations in Holyoke, but they will be combined once again at the completion of the $45.5 million building project, which is funded by a bond that will be paid back by the companies that do business in the wholesale electricity marketplace.

The project adds 100,000 square feet of space adjacent to one of the company’s two current locations. Not only will it streamline ISO New England’s operations and house all 400 employees in the two buildings, but it will cost, in the long run, about the same as leasing two properties today, McDonnell said. The new building is set to open in the spring.

Taking a cue from the cleaner technology ISO New England has promoted, the new building will be a ‘green’ facility, McDonnell added. “We have taken steps to make the building both environmentally friendly and energy-efficient.” The company is also reusing as much material as possible, including furniture and building materials, he said.

The move reflects both the company’s growing reach in managing electrical power for the region and its eye for innovation. When it comes to new ideas to streamline the busy electricity marketplace, the lights are on at ISO New England.

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

Angy’s Food Products Inc.
77 Servistar Industrial Way
Westfield, MA 01085
Chapter: 11
Filing Date: 12/07/05

Brunelle, Timothy W.
122 Squire Lane
Springfield, MA 01118
Chapter: 13
Filing Date: 12/12/05

Buchanan, Amy
61 Arthur St.
Springfield, MA 01104
Chapter: 13
Filing Date: 11/25/05

Buchanan, William L.
61 Arthur St.
Springfield, MA 01104
Chapter: 13
Filing Date: 11/25/05

Delvalle, Jose M.
228 Tiffany St.
Springfield, MA 01108
Chapter: 13
Filing Date: 12/08/05

Demers, Alicia E.
28 Entrybrook Dr.
Springfield, MA 01108
Chapter: 13
Filing Date: 12/14/05

DiCarlo, Jeanne A.
4 Bull Head Road
Southampton, MA 01073
Chapter: 13
Filing Date: 12/01/05

Fortier, Milca R.
80 Kanawha Ave.
Agawam, MA 01001
Chapter: 7
Filing Date: 12/02/05

Gonzalez, Maribel
81 Elcon Dr., Apt. 20
Chicopee, MA 01013
Chapter: 7
Filing Date: 12/08/05

Holloway, Angela J.
Holloway, James T.
64 Hillside Dr.
Springfield, MA 01118
Chapter: 13
Filing Date: 12/06/05

Johnston, William
Timothy
Johnston, Mary Desmarais
170 Washington Blvd.
Springfield, MA 01008
Chapter: 13
Filing Date: 11/17/05

Larrivee, Steven R.
27 New Ludlow Road
Granby, MA 01033
Chapter: 7
Filing Date: 12/01/05

Laureano, Maria D.
29 Parkside St.
Springfield, MA 01104
Chapter: 13
Filing Date: 12/13/05

McWhinnie, David J.
206 Palmer Road
Monson, MA 01057
Chapter: 13
Filing Date: 11/23/05

Melendez, Tricia Dawn
16 Stuart St.
Springfield, MA 01119
Chapter: 13
Filing Date: 11/23/05

Merceri, Darrell Shane
32 Byers St., Apt. 308
Springfield, MA 01105
Chapter: 7
Filing Date: 11/23/05

Mestres, Francisco J.
21 Sumerset St.
Springfield, MA 01108
Chapter: 13
Filing Date: 11/28/05

Nero, Walter J.
190 Englewood Road
Longmeadow, MA 01106
Chapter: 13
Filing Date: 11/17/05

O’Brien, Donna Marie
675 Pendelton Avenue
Chicopee, MA 01020
Chapter: 13
Filing Date: 12/09/05

Pike, Jeffrey D.
94 Paradise St.
Chicopee, MA 01020
Chapter: 7
Filing Date: 11/23/05

Poplawski, Kathryn Marie
32 Irene St.
Chicopee, MA 01013
Chapter: 13
Filing Date: 11/18/05

Smart, Laura H.
6-8 Bates St.
Westfield, MA 01085
Chapter: 13
Filing Date: 12/05/05

Thompson, Philamena M.
298 Ambrose St.
Springfield, MA 01109
Chapter: 13
Filing Date: 12/13/05

Lenox Recertified With OSHA ‘Star’

EAST LONGMEADOW — Lenox’s American Saw & Manufacturing Co. has been recertified for an additional five-year membership in the prestigious ‘Star’ Voluntary Protection Program (VPP) of the U.S. Labor Department’s Occupational Safety and Health Administration (OSHA). The plant, which employs 646 workers, manufactures saw blades and hand tools, including band saws, hack saws, tubing cutters, and utility knives. With its “Star” recertification, it continues as part of an elite corps of about 1,370 workplaces nationwide that have earned VPP recognition. The latest recertification came after an OSHA team’s thorough on-site review of the plant’s safety and health programs, interviews with employees, and a tour of the work site. The plant was first certified as a ‘Star’ site in June 1997 and re-certified in September 2000. The latest review of the plant’s safety and health management programs found that Lenox remains consistent with the high quality of VPP programs, according to Marthe Kent, OSHA’s New England regional administrator. In addition, the plant’s illness and injury rates remain well below the industry average for saw blade manufacturing, added Kent.

Firm Adds Three Clients at Year’s End

HOLYOKE — Bauzá & Associates closed out the year by landing three major accounts – Manny’s TV & Appliances, Williams Distributing, and Economy Insurance, Inc. Hector Bauzá, founder and CEO, said the firm had a “stellar year in 2005” by adding three clients who understand the importance of marketing to Hispanics as a prudent business objective. The firm’s main focus for these companies will be to develop strategic marketing platforms and media campaigns aimed at the Hispanic market, according to Bauzá.

TD Banknorth Massachusetts Ranked #2 in Small Business Lending

WORCESTER — TD Banknorth Massachusetts, a division of TD Banknorth, N.A., recently announced that the U.S. Small Business Administration (SBA) has ranked it the state’s second-largest lender in terms of dollar volume of SBA-backed loans, and fifth in terms of the number of loans made. For the year ending Sept. 30, TD Banknorth Massachusetts made 131 7 (a) SBA loans for more than $19 million, marking the fourth year in which the bank has ranked among the state’s top- 10 small business lenders. SBA loans, which are guaranteed by the SBA, help banks lend to small businesses that might not otherwise qualify for a loan. TD Banknorth, which is an SBA Preferred Lender, works in partnership with small business clients and supports them with loan decisions that are made locally.

Yankee Candle Exec Assumes New Duties

DEERFIELD — Harlan M. Kent, President of Yankee Candle Co., recently added the title of chief operating officer to his role. The COO position did not exist prior to Kent’s promotion. With his new duties, Kent will also oversee the company’s manufacturing and finance areas. He joined Yankee Candle in 2001 as senior vice president for the wholesale division, and was promoted to president in 2004.

Maryland Company Purchases Computer Services Firm

SPRINGFIELD — TEKsystems of Hanover, Md., recently purchased CSA-Tobin, a computer services company, for an undisclosed price. CSA-Tobin was created in 2004 by a merger of Tobin Systems, based in Springfield, and Computer Staffing Associates, based in Connecticut. Approximately 200 technical professionals are employed at the company, which specializes in creating custom programming and offering contract programmers for companies. The Farmington, Conn.-based firm has offices in Springfield, Stamford, Conn., and Tampa, Fla. TEKsystems offers temporary staffing for the computer industry, as well as provides project services to information technology companies.

Big Y Education Express Program Extended

SPRINGFIELD — Due to an overwhelming response from almost 2,000 participating schools, Big Y Foods has extended the fourth round of its Education Express Program to June 28. Education Express is a program in which Big Y shoppers purchase money saving products featured with the Big Y Express Savings Club electronic discount card to earn merchandise points for the school of their choice. Schools redeem these points for free equipment and supplies including computers, software, textbooks and sports equipment. Since the program started in 1994, Big Y has awarded more than $7.5 million in free teaching materials and classroom equipment to more than 1,900 schools in its market area. In this fourth round alone, schools have accumulated more than $2 million in Education Express points.

Bay Path to Offer Criminal Justice Major on Saturdays

LONGMEADOW — Bay Path College will expand the degree offerings available in its accelerated One-Day-A-Week Saturday College for women by adding a Bachelor of Science in Criminal Justice to its curriculum in January. The B.S. degree for One-Day students, with specializations in either fraud investigation or counseling, will prepare them for a career in the criminal justice field. For more information, call (413) 565-1273, (800) 782-7284, ext. 273, or visit www.baypath.edu.

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

The Binding Source LLC v. Etchell’s Technology Corp.
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $25,000
Date Filed: Dec. 5

HAMPSHIRE SUPERIOR COURT
C & S Distributors Inc. v. Michelson Properties Inc.
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $40,692.98
Date Filed: Dec. 15

HOLYOKE DISTRICT COURT
Broadcast Music Inc. v. Pearl St. Night Club Inc. a/k/a-d/b/a Pearl Street
Allegation: Breach of contract — Failure to pay for services: $10,333.92
Date Filed: Nov. 25

SPRINGFIELD DISTRICT COURT
Valley Industries Inc. v. Todd Hanks d/b/a New England Cap & Hitch
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $8,880.91
Date Filed: Dec. 6

Project Graphics Inc. v. Prodigy Sign Innovations LLC
Allegation: Breach of contract — Failure to pay for goods sold and delivered: $5,970.15
Date Filed: Dec. 12

Liberty Mutual Insurance Co. v. Autumn Rose Corp.
Allegation: Breach of contract — Failure to pay for workers’ comp insurance: $5,139
Date Filed: Dec. 12

WESTFIELD DISTRICT COURT
Industrial Technical Services Inc. v. Delray Contracting Inc.
Allegation: Breach of contract — Failure to pay for services: $8,319.91
Date Filed: Nov. 21

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

AGAWAM
Crowley’s Trailer Sales
32 Shoemaker Lane Dennis Crowley

Gemini Massage
299 Walnut St.
Aimee Coulombe

Mason & More
767 South West St.
Ken Basdekis

Mortgage Processing Services
31 Meadow St.
Angela Valego

Suspension Shack
1 Belden Ct. L1
Benjamin Libbey

Wicked Teez
767 South West St.
Melissa McCabe

AMHERST

A.R.M.
683 Station Road
Joel Bias

Chao’s Consultant
11 Willow Lane
I-Ting Chao

Supply from China
25 Edgehill Place
Chen Feng Lee

CHICOPEE

Arbour Cuts
1523 Memorial Dr.
Debra Arbour

Family Chiropractic
478 Burnett Road
Catherine Guertin

Jack’s Styling Salon
955 Front St.
Joaquim Santos

Knoller Translation Services
104 Johnson Road
Maria-Helena Knoller

Mook Media
41 Broadway
Michael Lareau

EAST LONGMEADOW

Charter Communications
East Longmeadow/Ludlow Office
Thomas Hearity

J & B Landscape
290 Westwood Ave.
James Lynch IV

Polish American Memorial
Cavalry Squadron
202 Parker St.
Matt and Theresa Knas

HADLEY
Steve & Barry’s Sportswear
Suite HC6
Barry Prevor

HOLYOKE
The Clover Pub
102-104 High St.
Michael Rigali
K & D Auto Sales
16 Kay St.
Alexander Oquendo

Sunglass Hut
50 Holyoke St.
Sunglass Hut Trading Corp.

LONGMEADOW

Footcare Zone
123 Dwight Road West 1
Karen Marsian DPM
Karen E. Marsian DPM
123 Dwight Road West 1
Karen Marsian DPM

NORTHAMPTON
Krista’s Jewelry Box
237 Main St.
Patrick and Krista Rondeau

Never Another Death
67 West St.
Joyce Sabin-Rescia

SPRINGFIELD
Aimee G. Munnings
139 Euclid St.
Aimee G. Munnings

Ambassador Auto Sales
1095 State St.
Lance Watson

BM Home Improvements
71 Chestnut St.
Gregory Bryla

Blades of Steel Remodeling
11 Mohegan Court
Joseph McCallum
Couture Heating & Cooling
31 Lavender Lane
Paul Couture

Edwin Auto Repair
136 Nursery St.
Edwin Santiago

Full Service Real Estate
135 State St.
Wayne Farul

Indu Streetz Magazine Inc.
29 Foster St.
Artie Gratan

JC Xpressions
115 Florence St.
Joan Lee Cole

Johnyna’s Creations
25 Roy St.
Andrea Pagan

Loving Care Kennels
139 Maybrook Road
Nick Korniotes Jr.

Mario Cosentini Landscaping
7 Rosemont St.
Mario Cosentini

Paint’n the Town
66 Garland St.
Andrea Perry

Pioneer Valley Plantscapes
68 Glenoak Dr.
Sandra Mayeck

Quick Stop Food Mart
889 Carew St.
Imran Raheel

Signs by Bob Smith
188 Oakland St.
Robert Smits

Vincent’s Beauty Salon
1655 Main St.
Vincent Stanek

WEST SPRINGFIELD
Advanced Print & Copy
229 Memorial Ave.
Markath Inc.

ATC Systems
150 Grand View Ave.
Joseph Conti Jr.

B’Shara’s Restaurant
1268 Riverdale St.
Paul B’Shara

Connecticut Valley Block
Company Inc.
55 Circuit Ave.
Anthony Parrelli

Elm Market & Package Store
246 Elm St.
Walter Rickus Jr.

Five Star Towing and
Recovery LLC
55 Exposition Ter.
Richard Harty

Hardy’s Home Décor
86 Connecticut Ave.
Stephen Hardy

J.M.S. Towing
334 Park St.
Pedro Miranda

Liberty’s Shell
3 Central St.
Ali Jabak

Magnolias
1680 Riverdale St.
Kathleen Roy

Miguel Coamo Barber Shop
1146 Union St.
Miguel Velazquez

Olde English Style Chimney
Sweeps
58 Sikes Ave.
Angela Boido

River Inn Motel
55 Main St.
Ohmna Moshivay

WESTFIELD
Absolute Siding & Window System
125 Union St.
Anthony Paroline

Blackberry Lane
7 Sadie Lane
Beverly Lucey

Fantasy Frogs.com
190 Ponders Hollow Road
Mary Vella

P & M Detailing
202 Union St.
Peter Chistolini

Top Gunz Paintball
71 Loomis St.
Todd Mullane

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

AMHERST
Esperanza International Inc.,
203 Rolling Ridge Road,
Amherst 01002. David S.
Poritz, same. (Nonprofit) To
carry out projects on
environmentally impacted
zones to aid indigent
inhabitants, etc.

BELCHERTOWN
Accurate Automotive Service
Inc., 644 Federal St.,
Belchertown 01007. Steven A.
Miss, same. Gasoline sales and automotive service.

Belchertown Family Center Inc.
, 720 Franklin St.,
Belchertown 01007. Kara L.
Drake, 10 Howe St.,
Belchertown 01007. (Nonprofit)
To provide the community with early childhood enrichment through learning
activities, support and teaching good parenting skills, etc.

CHICOPEE
Chicopee Center Chiropractic
Inc., 18 West St., Chicopee
01013, Steven Edward
Przezdziecki, 199 Ventura St.,
Ludlow 01056. To provide
chiropractic services, etc.
SAS Cable Inc., 195 Meadow
St., Chicopee 01013. Alex Sedyakin, same. Installation of cable.

FEEDING HILLS
Panda Garden Chinese
Restaurant Inc., 1340
Springfield St., #5, Feeding
Hills 01030. Qiu Ping Wang, same. Restaurant.

HOLYOKE
Yash & Aashi Inc., 615
Homestead Ave., Holyoke
01040. Sanjay Patel, same.
Sale of telecommunications services and equipment, rental of video/DVD equipment, etc.

LUDLOW
Autocraft Interiors Co. Inc.,
200 State St., Gate 3, Ludlow
01056. Anthony M. Zalucki,
395 Miller St., Ludlow 01056. Manufacturing.

NORTHAMPTON
Irokomaple Orthopedic
Surgeons Foundation USA
Inc., 351 Pleasant St., No. 7,
Northampton 01060. Bernard
Retti, MD, same. (Nonprofit)
To increase the access of Nigerian citizens to orthopedic services through the efforts of volunteer surgeons, etc.

SOUTH HADLEY
New England Playwrights
Project Inc., 44 Spring St.,
South Hadley 01075. Hillary
Rathburn, 27A Hooker Ave.,
Northampton 01060. (Nonprofit)
To produce readings of new
plays and musicals; workshop
and stage new plays; provide educational wing for young playwrights, composers, etc.

SPRINGFIELD
Allied Testing Laboratories
Inc., 115 St. George St.,
Springfield 01104. Richard
Bellucci, 236 Westerly Circle,
Ludlow 01056. Construction testing and engineering services.

Cotanak Inc.,
1383 Liberty St.,
Springfield 01104. Neset
Karaaslan, 57 Cedar St., Ludlow
01036. Restaurant business.

Rukmini S. Kenia, M.D., P.C.,
65 Springfield 01085. Rukmini
S. Kenia, same. To render
professional medical services.

WESTFIELD
H.F.P., Fire Protection
Services Inc., 32 Char Dr.,
Westfield 01085. John F. Viola,
same. To design, install, service
life safety fire protection systems including the Fire Warning and Security Systems installation, etc.

H.F.P., Fire Sprinkler Inc.,
32 Char Dr., Westfield 01085.
John F. Viola, same. To deal in
life safety fire protection
systems including the Fire
Warning and Security Ststems installation, etc.

K’s Restaurant Inc.,
318 East Main St., Westfield 01085. Rui
Zhi Wang, same. Restaurant.
Uganda Rural Fund USA
Inc., 6 Union St., Westfield
01085. Michael C. Lillpopp,
same. (Nonprofit) To provide charitable assistance to impoverished adults and
children in the rural districts of Uganda, etc.

WEST SPRINGFIELD
Victor D. Govoni, P.C., 131
Elm St., West Springfield
01089. Victor D. Govoni, same.
To engage in the practice of law.

Dr. William P. Ferris, Western New England College Professor of Management, has been appointed Associate Editor of the Journal of Management Education. Ferris is an expert in teambuilding, leadership, and management education. In addition to his appointment as an associate editor, Ferris was recently named the Editorial Board Member of the Year for the Academy of Management and Learning, the educational journal of the national Academy of Management.

•••••

The Spirit of Springfield announced that Lawrence Goldberg, President and General Manager for Springfield Rock Radio Group, has accepted the position as Chairman, and Arlene Putnam, General Manager, Eastfield Mall, Springfield, will serve as Vice Chair. Board members also include Treasurer, Kristina Houghton, Meyers Brothers Kalicka, PC; Clerk, Attorney Charles Casartello, Pellegrini, Seeley, Ryan & Blakesley, PC, and Directors, Romola Rigali, The Republican; Douglas McKell, Connecticut Surgical Group, and Daniel M. Glanville, Director of Government and Community Affairs for Comcast.

•••••

PeoplesBank in Holyoke announced the following:

	• Brady D. Chianciola has been appointed Branch Officer of the Chicopee office;
Brady D. Chianciola

	• Kristen Pueschel has been appointed a Loan Officer in the Consumer Loan Division;
Kristen Pueschel

	• Colleen A. Brown has been appointed a Loan Officer in the Residential Lending Division, and
Colleen A. Brown

	• Katherine A. St. Mary has been appointed Assistant Vice President in the Residential Lending Division.
Katherine A. St. Mary

•••••

Arthur M. Haselkorn, a commercial loan officer for Berkshire Bank, recently relocated to the 31 Court St., Westfield branch office.

•••••

	Attorneys John G. Bagley and Dennis R. Anti of Morrison Mahoney LLP of Springfield have been voted Massachusetts Super Lawyers by their peers. The award is presented annually by Law and Politics magazine.
John G. Bagley

	Both Bagley and Anti are partners of the firm and work in the Springfield office.
Dennis R. Anti

•••••

	Terri Fox has been named Vice President of Retail Banking for Monson Savings Bank. Fox will assume the position held by Norma St. John who is retiring after 22 years of service.
Terri Fox

•••••

Beth Larrow has been named Executive Administrative Assistant at the Berkshire Chamber of Commerce in Pittsfield.

•••••

Denise M. Beaulieu has been named Marketing Manager for the Loomis Village in South Hadley. Loomis Village is a part of the Loomis Communities.

•••••

Christopher C. Desmarais, Senior Vice President of Gamco Asset Management Co., has been appointed to the Dolan Advisory Council for Fairfield University’s Charles F. Dolan School of Business.

•••••

Rich Mathews has been named Vice President of Marketing for Lenox in East Longmeadow.

•••••

Katherine K. Coolidge, a Law Librarian at Bulkley, Richardson and Gelinas in Springfield, will serve on the Board of Directors of Wing Memorial Hospital and Medical Centers in Palmer.

•••••

Trinidad Andino has been named a Mortgage Loan Officer at TD Banknorth Mortgage Group in Springfield.

•••••

Julie Makris has joined Carlson GMAC Real Estate as a Sales Agent in the Longmeadow office.

•••••

Suzanne Smith has been named Director of Health Services of Tapestry Health in Florence. She will direct the agency’s 11 family planning and community health services offices.

•••••

Gretchen O’Neil has joined the Belchertown office of ERA Laplante Real Estate as a Sales Associate.

•••••

Former Springfield Mayor Theodore DiMauro has joined the Springfield-based law firm Pellegrini, Seeley, Ryan & Blakesley.

•••••

Bacon & Wilson, PC of Springfield announced the following:
• Attorney Hyman G. Darling, Partner, has been named a Super Lawyer in the November issue of Boston magazine. Also, Attorney Darling recently attended a national conference on Special Needs Trusts at Stetson University.

Other Bacon & Wilson attorneys named Super Lawyers were:
• Paul Salvage, co-chairman of the Insolvency Department;
• Gary Fialky, chairman of the Corporate Department;
• Michael Katz, co-chairman of the Bankruptcy Department;
• Paul Rothschild, chairman of the Litigation Department;
• Stephen Krevalin, the firm’s Managing Partner, and
• Francis Mirkin, whose practice includes commercial and residential real estate.

•••••

Bulkley, Richardson and Gelinas, LLP in Springfield announced that Francis D. Dibble, Jr., Commercial Litigation, has been inducted as a Fellow of the International Academy of Trial Lawyers.

•••••

North Brookfield Savings Bank announced the following:
• Roberta Boucher has been appointed Main Office Branch Manager, and
• Tammy Gour Gustafson has been promoted to Assistant Branch Manager.

•••••

The Pioneer Valley Planning Commission in West Springfield announced the following:
• Jessica Jo Allan has been named a Senior Planner, and
• Gail E. Bobin has been named a Social Services Planner.

•••••

Andrew E. Markowski was named Counsel at Elizabeth Gara & Associates, a lobbying firm based in Hartford, Conn. He will focus on energy law and legislation as well as consumer protection issues.

•••••

Kent Pecoy Construction announced the following:
• Kevin Wiler has been promoted to Senior Foreman. In his new position, he will oversee junior foremen and crews, do scheduling, ordering, and product layout, as well as focus on customer relations and employee evaluations;
• Scott Poulin has been promoted to Project Manager. He will be responsible for managing each new custom home-build.

Connecting the Dots

Cover Story

Jim Mullen Wants The Elms to Branch Out

Since assuming the presidency of tiny Elms College in Chicopee in July, Jim Mullen says he’s spent most of his time listening — to students, faculty, staff, the alumni, and area community and business leaders. This is a key element in his strategy to build new and stronger partnerships in the community and take the school’s mission well beyond its walls.

Jim Mullen calls it “management by walking around.”

That’s how he describes the style he brings to the president’s office at Chicopee’s Elms College, a post he assumed last summer. And there’s more to it than merely patrolling the school’s tiny 21-acre campus.

He makes a point of eating at least one meal a day in the dining commons and sharing a table with students. He’s also been known to join in touch football games in the quad, and he even works out occasionally with members of the school’s baseball team.

“That’s a pretty humbling experience,” he told BusinessWest. “I usually have to peel weights off the bar to handle the repetitions.”

But he says such exercises give him energy — literally and figuratively — and a stronger connection with the campus community.

It’s all part of Mullen’s ongoing efforts to continuously monitor student and faculty thoughts and concerns at the 77-year-old school, which he believes is at a critical juncture in its history. Whether he’s throwing batting practice to those assembled for an impromptu pick-up baseball game or grabbing a quick lunch in the cafeteria, Mullen is also listening.

That’s what I’ve spent a good amount of my time here doing,” he told BusinessWest. “Often, when I’m eating with students, I’ll hardly say a word; I’ll just sit there and listen.”

And by listening to students, faculty, alumni, and the public at large, Mullen is helping to shape a course for the school. It’s not a new course, he stressed repeatedly, but merely an attempt to re-emphasize the school’s mission — educating and inspiring young people committed to serving their community — while also creating some new manifestations of that broad purpose and generating greater awareness of the college.

Which brings him to something called the ‘Elms College Community Spirit Service Day.’

That’s a new program he initiated this fall that addresses all those goals by having students take a day off from the classroom and go out into the community.

Specifically, groups of students ventured to sites ranging from the Chicopee Department of Public Works to the Emergency Food Pantry in Springfield; Girls Inc., to the Open Pantry Teen Living Program.

Duties included everything from helping young people with homework to painting the walls at several area shelters, said Mullen, noting that more than 200 members of the college community participated, a number he expects will grow each year.

Service Day was created to give students a taste of community service and awareness of its importance to quality of life in the region, while also providing the Elms, its students, facility, and staff with greater visibility.

It’s part of Mullen’s enhanced partnership- building initiatives, or work to “connect the dots,” as he put it, within the Western Mass. community.

Such partnerships include a tutoring/mentoring program that involves students of the Holy Name school located across the street from the Elms campus, and an ongoing collaboration in which drama students at the college help students at Holyoke Catholic High School stage productions like the recent Dead Man Walking. There’s also a venture called the Quest Program, which brings area middle school students to the Elms campus each summer.

Doing so introduces them to the school, but, more importantly, it often inspires participants to pursue a college education.

Looking to the future, Mullen said Elms administrators want to build a new science center, a necessary step toward expanding some of the school’s most successful programs, such as Nursing, Chemistry, and Speech and Language Pathology, and also build new athletic facilities to facilitate growth of programs that have helped attract and retain many students.

The more immediate goal, however, is to build more of those partnerships that Mullen believes will take the school to the next level.

“Our mission is not only to provide a great education,” he said, “but also to inspire connections.”

School of Thought

When asked how he arrived at the Elms, one of the smallest schools in New England in terms of both acreage and enrollment, Mullen said it was a case of “as natural a fit as one could ask for.”

Elaborating, he said that, as chancellor of the University of North Carolina at Asheville, a post he assumed in 1999, he would often get calls from a variety of search firms. “The conversations usually started with, ‘would you interested in becoming the president of ….?’ The answer was usually a qualified ‘no,’ he said, adding that he did consider some of the positions. But none as seriously as the Elms, which presented a chance to come home — he was born in Granby and lived in the Greater Springfield area for many years — and raise his family in the environment he enjoyed.

Meanwhile, the Elms presidency presented a chance to work for and within an institution that has played a big role in his life — the Catholic Church — while also giving him the challenge and opportunity of making Elms a stronger, more vital force in Catholic higher education.

“It is a perfect fit for me professionally and personally,” said Mullen, who attended a Catholic college, Holy Cross, and has spent the bulk of his career in higher education, establishing a reputation as a hands-on administrator specializing in building bridges between schools and the communities in which they are located.

At UNC Asheville, for example, Mullen created a program similar to Elms’ service day. Called ‘Bulldog Day,’ it involves freshmen performing thousands of hours of community service.

Meanwhile, at Trinity College in Hartford, where he served in a variety of positions, Mullen was executive director of an initiative called Project 2002, a $300 million public-private revitalization project that has transformed the neighborhood surrounding the college into what is called the “Learning Corridor.”

Mullen wants to continue that pattern at the Elms, a school founded in 1928 by the Sisters of St. Joseph. Located near the Chicopee-Springfield line in a mostly bluecollar neighborhood, the originally allwomen school has historically provided opportunities to those who might not otherwise enjoy a college education.

“Many of our students are the first in their family to attend college, and the vast majority of our students receive some form of financial aid,” Mullen explained. “These are individuals who haven’t had all the opportunities that others have.

“Our goal is to prepare such students for success in their chosen field,” he said, “but also to make them responsible citizens of the world.”

In an effort to diversify and grow its enrollment, the Elms went co-ed in 1999, a move that met with resistance from many students, faculty, and alumnae. Ultimately, the move has proved successful in boosting enrollment, and now roughly one-third of the school’s 1,200 full- and part-time students are male.

The Elms boasts a wide variety of programs — many of them involving service — including Nursing, Education, Social Work, Criminal Justice, and others.

Work in the classroom is complemented with service within the community; students are required to complete a minimum of 30 hours of community service to meet what the school calls its “service-learning requirement.”

Students volunteer time with such groups as the American Red Cross, Habitat for Humanity, the Springfield Library & Museums, and others.

Aggressive Course

Moving forward, Mullen said he wants to increase enrollment, and the broad strategy for doing so is building awareness of the school and its many programs, both in this region, home to the vast majority of current students, and well beyond.

The school has embarked a moreaggressive marketing initiative, one that involves print, radio, and television, but the awareness-building efforts go well beyond advertising, said Mullen.

Indeed, it is grounded in the relationship- building efforts he described and creating greater visibility. Some of the initiatives are small in scope — such as an effort this fall to encourage Chicopee-area businesses to reach out to Elms students and welcome them back for the new semester; the campaign resulted in signs in many storefronts that were not seen in years past. Others, such as the Quest Program are broader.

Quest was designed to introduce young people to the idea of college education — it is still a foreign concept for some population groups, Mullen explained — and then encouraging students to get and stay on that path.

“We would naturally like these people to come to the Elms,” said Mullen. “But the important thing is for them to go to college — any college.”

Quest, the drama partnership with Holyoke Catholic, the tutoring initiative at Holy Name, and other ventures are all part of the ‘connecting-the-dots’ philosophy that Mullen brings to Elms. He told BusinessWest that colleges cannot be islands in their cities and towns, merely taking in students to attend classes.

“Schools can’t be insular, they can’t put up gates and hide behind them,” he said. “Here, we’re about knocking down gates and reaching out.”

By doing so, the school can meet a number of goals — everything from better preparing students for careers in chosen fields, to familiarizing area young people with the Elms — which will naturally help with enrollment.

“All colleges get interested in people when they turn 17,” he told BusinessWest. “Through many of our partnerships, we show that interest much earler, and that helps us create more opportunities for people.”

As for enrollment, Mullen said he does not have a magic number in mind, but would like to see steady increases without impacting one of the school’s better selling points.

Indeed, the small size of the school is one of its strengths, he said, noting class sizes that generally run between 12 and 15 students, and also a close-knit community that isn’t found on many campuses.

“Here, if you’re having a bad day, someone’s going to take notice,” he explained.

“It could be another student, a faculty member … it could be me; and they’re going to ask what’s wrong and offer to help.”

Another of the school’s strengths is its status as the only Catholic college within the Diocese of Springfield. This gives the school a strong base from which to recruit, said Mullen, referring to the many Catholic high schools in the region, including Holyoke Catholic, Cathedral in Springfield, and St. Mary’s in Westfield.

Overall, however, the policy is one of inclusion, he said, noting the school strives to create diversity within the faculty and student body.

Meanwhile, it is working hard to shed its ‘best-kept secret’ status within the higher education education community.

“People will often say that they’ve heard of The Elms, but that they didn’t know all that it does,” he explained. “That’s something we want to change, and to do that, it all comes back to partnerships.”

Class Act

As he talked with BusinessWest in his spacious office in Berchmans Hall, Mullen said he likes his new digs. “But I’m just not in them a lot.”

Instead, he’s taking in one of the drama projects conducted in partnership with Holyoke Catholic, or watching one of the school’s 16 sports teams, or trying to get a curve ball past a student in a pick-up baseball game.

That’s ‘management by walking around,’ and it’s the M.O. that Mullen will employ in his efforts to help the Elms branch out – becoming an increasingly larger, more visible part of the community.

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

Springfield Doesn’t Need a Garage Sale

The headline in the local newspaper read, ‘Springfield Mulls Garage Sale,’ or something to that effect. Given the current sad state of fiscal affairs here, one might have given that a quick look and proceeded to conjure up images of a giant tag sale staged to help raise some revenue to pay teachers or keep the lights on.

Reading further, however, we come to learn that Springfield officials, including members of the Finance Control Board, are in preliminary talks with the state about a possible sale of one of the parking garages run by the Springfield Parking Authority to the Mass. Convention Center Authority, which runs the recently opened MassMutual Center.

The theory goes that the convention authority can benefit from owning and operating the 1,300-space Civic Center Parking Garage, located across East Court Street from the MassMutual Center, thus gaining a steady source of parking for events. Meanwhile, the cash-strapped city could pocket some much-needed revenue.

While all this might sound good, such a transaction would ultimately make as much sense as that other kind of garage sale.

Yes, Springfield needs the revenue. But what it doesn’t need to do is start messing with one of the few real assets it has left in its efforts to draw businesses and consumers to its downtown: accessible, affordable parking.

Selling the Civic Center garage to the state will, we believe, create fewer parking opportunities downtown, which will inevitably drive up the cost of the spaces still in the inventory, which will eventually impact a wide array of businesses in the downtown area.

Which is why we hope these ‘preliminary’ talks don’t go any further.

Before we elaborate, let’s return to the subject of parking in Springfield. For some, it’s a sore subject, but in reality, car owners and business owners have it better here than they have it in any other large city in the Northeast.

Most don’t see it that way, but this stems from the notion that people tend to regard Springfield, and the region as a whole, as a place where people shouldn’t have to pay to park. When the Big E started charging people to park, for example, area residents got angry. When the price at the Big E went from $3 to $5, people went ballistic.

That’s because they have no perspective — unless they’ve attended a Red Sox game recently. Only then can they fully understand the true meaning of paying to park.

These individuals also understand that a parking lot or garage is a business, and it can be a very good business.

In Springfield, we’re fortunate. There is an ample supply of parking, some of it convenient to downtown businesses and some of it less so, and at rates — generally $40 to $90 a month — that would make people in Boston, Hartford, or Providence laugh. In general, these lots are secure, clean, and well-managed by the city’s parking authority. They should be considered assets, not buildings to be sold off to raise cash.

As we said, these are challenging times for downtown Springfield and companies doing business there. Incidents of violent crime have increased; one shop owner on Main Street was recently shot in broad daylight, and there was a mugging outside the TD Banknorth building. Business owners and those working downtown don’t need another reason to start thinking seriously about taking their act to the suburbs — the land of free parking.

They would have one if the Civic Center garage were to be sold to the convention authority. Such a transaction would adversely impact inventory and the price of remaining spaces.

If the city wants to raise revenue, it does have some properties that can be sold. Union Station comes to mind. Nothing is happening with the long-vacant train station and it appears that nothing is likely to happen anytime soon. The old jail is also available — although no one seems to want it — and there are other surplus buildings to be had.

What this struggling city doesn’t need is a garage sale — of any kind.

Schooled in Capital Concern

There are growing concerns that Massachusetts is losing its competitive edge to other states and countries.

More of our students, and future workforce, are looking to Massachusetts public colleges and universities to build their futures. In 2002, 67% of Massachusetts natives who entered college in state went to a public college or university — up from 59% in 1996.

Our private higher education institutions are also a tremendous asset, in that they recruit many students from out of state. We must work with those institutions in developing strategies for keeping talented out-of-state students here.

But our public colleges and universities are already playing a vital role in retaining educated workers, and in a state with anemic population growth, more than 85% of the 800,000 UMass alumni and our state and community colleges are living, working, raising families, and paying taxes in the Commonwealth.

Our public colleges and universities also are highly responsive to local and statewide needs, interests, and industries:

The 15 community colleges have provided direct training this year for more than 500 Bay State companies, from Analog Devices to Yankee Candle Co.;
The nine state colleges have adopted innovative programs for meeting the growing need for K-12 math and science teachers; and
UMass has become a national leader in technology transfer, helping to fuel the life sciences, nanotechnology, marine sciences, and information technology industries statewide.

After several years of cuts to operating budgets and foregone capital investment, the state has taken some initial steps toward addressing funding gaps in public higher education. But a bolder leap is necessary to ensure that we retain our competitive edge.

We need to seriously address the critical capital needs of our public colleges and universities, which have been conservatively estimated at $2.9 billion for the 29 public campuses. We must make sure that our buildings are safe, that our students are learning in the most modern laboratories and classrooms, and that our researchers have state-of-the art equipment and technology.

By any standard, Massachusetts’ capital investment has been woefully inadequate. In 2004, Massachusetts invested only $43 million, far less than any of the states against which we compete for investment and jobs, including Connecticut, at $175 million; New York, $269 million; and North Carolina, $617 million.

The $286 million public higher education capital bond bill that is currently being considered barely makes a dent in the need, although many of the proposed projects would make a direct contribution to the economic competitiveness of our state, including an allied health building at North Shore Community College to train muchneeded nurses, a life sciences R&D facility at UMass Medical to bolster the biotechnology sector, or a design center at MassArt to help keep Massachusetts among the nation’s leading centers of design.

Further, the Legislature should adopt a series of reforms championed by the Massachusetts Taxpayers Foundation, which will provide public colleges and university with greater management flexibility to employ these funds more effectively and efficiently.

To remain competitive economically, our Commonwealth must get many things right: the cost of doing business, public school quality, health care policy and energy supply, among others. Strategic state investments in our public higher education system are a key part of ensuring our future prosperity.

Richard Lord is the president and CEO of the Associated Industries of Massachusetts;www.aimnet.org. William H. Guenther is the president of the Mass. Insight Corporation;www.massinsight.com.

A Developing Story

Dan, Chris, Larry, and Marc Grenier of Grynn & Barrett Studios

Features

The Greniers Studio Changes Its Name, Widens Its Focus

Dan, Chris, Larry, and Marc Grenier of Grynn & Barrett Studios

Second-generation members of the Greniers photography studio say the company is in a growth mode — expanding services, while also widening its geographic reach. To convey the growth of this family business, and facilitate it, the brothers Grenier are actually downplaying the family name somewhat, adopting Grynn & Barrett Studios as a new moniker. It’s a play on words they hope will resonate with a younger audience and show that while this is a company that knows how to have fun, it takes its business seriously.

One of the early entries was ‘S.O.B.’

That stands for Sons of Bob, as in R. Robert (Bob) Grenier, founder of the nearly 60-year-old photography business that still bears the family name — sort of — and his four sons, Larry, Dan, Chris, and Marc, who now run the company.

‘S.O.B.’ was one of several concepts floated as a new name for the Holyokebased business, which specializes in school and family portrait work, and sought a new name for several reasons, including territorial expansion and a need to consolidate many business divisions.

Ultimately, it was decided that, while S.O.B. was clever and well-liked internally, there would no doubt be problems making it work within a youth- and family- dominated customer base.

But the search for a name that conveyed fun and a contemporary focus continued and, ultimately, the company, with the assistance of the local marketing firm Darby O’Brien, came up with Grynn & Barrett Studios.

The words The Grenier Family, Photographers since 1948 accompany the new name in all marketing materials, letterhead, and business cards, said Larry Grenier, the company’s president and CEO, noting that the family name is well-known and respected in the community and the industry, and still holds great value.

But the company is pushing Grynn & Barrett, a play on words that the brothers believe conveys not only what the company does, but how it does it — with an accent on fun and outside-the-box thinking.

Meanwhile, they say the name change and the expansion with which it coincides, send a message to competitors that this family business is strong — and intends to get stronger.

“Within a part of the industry, our family name was getting trashed,” explained Larry Grenier. “People were saying that we’re a dysfunctional family, that we can’t keep the family together (a sister did leave to start her own venture), and that this business was not working well.

“We want to show those people that we’re not dysfunctional,” he continued, “and that we have plans and we’re moving them forward.”

Those plans include a physical expansion into Connecticut, where the company plans to open a second studio, probably in Rocky Hill, early next year. From there, the brothers want to continue their expansion effort into New York and perhaps beyond. With questions about how well the Greniers name would travel, the sons of Bob undertook a search for a new name.

BusinessWest looks this issue at how a family business intends to grow by actually downplaying the family name, and at how its broad expansion might ultimately develop.

Portrait of a Success Story

To announce the name change and new business strategy, the brothers Grenier took the company’s annual holiday pot luck lunch, staged Dec. 13, and turned it on its ear.

A light-hearted program began with announcements that the company had been sold (rumors to that effect have been circulating for years) and continued with the introduction of the new ownership tandem (both blind), and a display of their work. This was a set of poor, out-of-focus, badly aligned photographs that soon led staff members to realize that what they were seeing was all a gag.

But the new name and the company’s expansion efforts are serious business, said Dan Grenier, who heads studio operations for the company as vice president and director. He told BusinessWest that there were several motivations for changing an established name, especially the need to pull several different businesses, or divisions, under one brand.

Those divisions include one that he established, called Daniel’s School Pictures, which concentrates on portraits of students in grades K-11. There is another component that focuses exclusively on high school seniors (The Greniers), and still another, called Greniers ProSports, which concentrates on high school and youth sports.

These specialties have been developed over the course of the past 57 years, or since Bob Grenier, later nicknamed ‘Grin’ set up shop in the family home on Pine Street in Holyoke.

He started out with a partner, Lucien Ducharme, and the two names co-existed on the letterhead until the latter retired in the mid ’60s. The company grew steadily through the ’50s and ’60s, with wedding, family portrait, children, and high school senior photography.

In 1971, Grenier opened a second studio in the then-new downtown Springfield office/retail complex Baystate West. Soon thereafter, Larry Grenier became the first of the second generation to join the business. He was joined by Marc in 1976, Dan in 1979, and Chris in 1980.

The company saw a surge of growth in the ’80s, with the addition of the undergraduate student department, as it was called, and the sports department, which features products and services ranging from team photos to cards (similar to the ones for the pros) to championship plaques and refrigerator magnets.

Today, the company counts more than 60 high schools and colleges and about 300 elementary and middle schools on its customer list, as well as other clients ranging from the Vermont State Police Department to the Holyoke and Hartford, Conn. fire departments.

Bob Grenier eventually sold the business to his five children in 1991, and since, the company has continued to grow, while also consolidating. The Springfield studio (the company moved from Baystate West to a location on Mill Street in the late ’70s) was eventually closed, with all operations moving to Holyoke. This necessitated a larger facility, and, after a lengthy search of sites across the region, a location was found on Jarvis Avenue in Holyoke. A 24,000- square-foot, state-of-the-art studio was opened in July 2002.

Looking forward, the Grenier brothers believe they can build on their considerable success in Connecticut (roughly 50% of their business is generated in the Nutmeg State), which was amassed without an actual studio there.

Plans to construct an operation similar to the one on Jarvis Avenue are being finalized, said Larry Grenier, noting that such a facility should enable the company to secure a larger share of the Connecticut market and ultimately serve it more effectively.

The Big Picture

To take the company to the next level, and a broader territorial market, it was decided to create one name, or brand, said Dan Grenier, noting that this was an exercise approached with equal amounts of caution and determination.

“There is a lot of equity in the family name,” he explained. “But maybe not as much as we thought; it is well known in Western Mass. and Northern Connecticut, but beyond that, it doesn’t mean much to people.”

The search for a new name, he said, focused on finding something that would get people’s attention and make it clear that this was a fun company to work for and do business with.

Bob Grenier was brought in on the project early in the process, said his son Larry, noting that the company’s founder agreed that a new name would be needed to take the company into new and different markets.

‘S.O.B.’ was one of several contenders, although it was quickly confined to internal use, said Larry Grenier, and it will continue to be used in that capacity, with S.O.B. tshirts, sweat shirts, and other items for staff members.

Meanwhile, other suggestions for a new name included Churchill Studios, to connote the neighborhood in Holyoke in which the business grew up, and ‘The Brothers Grinn,’ another play on words.

‘Grynn & Barrett Studios’ emerged after several rounds of concepts and debate, said Darby O’Brien, because it conveys a sense of fun and contemporary thinking. This matches what goes on in the company’s studios, especially when it comes to high school senior portraits, where the nature of the final product is limited only by the student’s imagination.

Indeed, while decades ago, the photos were fairly static, with limited options, students today can blend their passions, modern technology, and even a little MTV to produce something truly original.

Larry Grenier

recalled one student who, wishing to pay homage to her father’s passion for the Red Sox, donned a uniform and was captured in a image in which a ball and bat seemed to be on fire.

“Our studio is built like a TV set,” he explained. “We can use a number of different backgrounds and elements to make this more than a photo — we want it be an event.”

Thus, the company wanted a name that would play with students and young parents, he continued. “And we think we’ve accomplished that.”

There was a good deal of discussion about the name change before the company moved forward, said Larry Grenier, noting that the proposed new brand was test-driven before some people in the photo industry.

“Most got a chuckle out of it; they thought it was fun, but also somewhat risky,” he told BusinessWest. “There is some risk involved, but at this point, we knew it was necessary to do something a little risky to move our business forward.

“We didn’t want something safe,” he continued. “We wanted to make a statement — to our staff, to our customers, and to our competition.”

Taking Their Best Shot

That statement is that the Grenier family is focused — figuratively and quite literally — on continuing the growth pattern that has defined the company since ‘Grin’ first told a family to say ‘cheese.’

The Grenier name will still be on each portrait taken, said Dan Grenier, adding that this long-standing tradition will not change. But the larger letters on the sign outside the Jarvis Avenue studio are reserved for the names Grynn and Barrett. They are there to make people laugh, but also take this family business seriously.

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

Compensation— Reward or Entitlement?

How to Make Your Program Cost-effective and Motivational

Most small business owners will say how their employees comprise their most valuable asset. In fact, very few businesses can succeed and grow without employees. Small businesses employ the largest segment of our country’s workforce, yet many business owners fall short in one aspect of effectively managing this resource: compensation.

Employee payroll and related benefit costs comprise the highest segment of overhead for most small businesses, averaging 40% or more of revenue. The new fiscal year is upon us and overall cost-of-living increases of 2% or more means business owners need to look for increased revenue sources and opportunities for cost containment.

Here are some options to consider to more effectively compensate your employees, and to reward and motivate them while keeping these costs in check.

Compare and Contrast

You first need to compare your employee numbers, compensation, and benefit levels with those of your peers and the market. Your competitors may not be open to sharing their numbers with you but your company’s CPA firm may be a valuable resource. Also, surveys are published every year by various industry groups on both a national and regional level. These surveys can give you an indication of whether your employee costs and personnel levels are generally in line or above the norm, overall.

Next, list each employee by job description, full-time equivalent status (FTE) and compensation expressed in terms of total annual compensation and hourly wage.

Compare this with survey data to find out where each individual is within the compensation range. Highlight those individuals at or above the upper range. This is important because you need to periodically assess whether you are paying your employees fairly relative to the market, whether each employee’s duties are still appropriate, needed and commensurate with compensation, and whether you are over or understaffed.

Pay Raises

Across-the-board pay raises are generally not a good idea. They don’t motivate employees, they send mixed messages, and eventually lead to overpaid individuals and disproportionate compensation levels. Pay raises should be granted on an individual level and only after a performance review.

A pay raise may be given to bring compensation to a level within the market range of that position if performance is as expected and the individual has achieved a noticeable and expected improvement in professional development.

A pay raise is also appropriate if an individual assumes more responsibility than originally assigned and obviously if one is promoted to a new position. Cost-of-living increases are appropriate but may not necessarily have to be made on top of other aforementioned increases. For example, an employee is paid $13.50 per hour and the market range for that position is $13 to $17.

If a 50-cent raise is granted to bring that employee higher within the market range based on performance and development, this represents a 3.7% raise which exceeds the cost-of-living increase of 2.5% and therefore, no further adjustment is necessary.

Once an individual’s compensation reaches the upper market range, you need to weigh carefully any pay raise beyond that upper limit because, if the individual is now above the range in the following year, the cost becomes compounded. You can’t just cut pay and benefits. You need to inform the employee of the condition and plan over time to get this back into the market range.

Bonus or Entitlement?

Bonuses are an important part of an employee-compensation program when utilized appropriately. Unfortunately, they are often misapplied, overused, and lose their effectiveness. Prior to implementing a bonus program you need to make sure your base pay and benefits are relative to the market, as discussed above. If they aren’t, fix them. A bonus program is not a substitute for an inadequate base compensation package.

If a company gives an across-the-board bonus year after year, employees see this as a part of their recurring compensation and in some cases spend more or plan in anticipation of receiving it. The “Clark Griswold” syndrome comes to mind and pity the owner who doesn’t come through with that annual Christmas bonus. He may end up at the bottom of the planned family swimming pool. I’m not suggesting you immediately scrap small goodwill holiday gestures, but consider the following. A bonus program should be communicated as a not necessarily recurring but discretionary reward for past exceptional performance. It should be based on profitability and, ideally, targeted performance goals.

A bonus program should be aligned with company goals, such as increased sales, quicker inventory turnover, decreased sick time and overtime, more-efficient customer flow, decreased order processing and customer waiting time, reduced customer write offs and lower days of revenue in accounts receivable. These should be specific and directed to appropriate departments.

For instance, an accounts receivable clerk can’t impact sales volume or inventory turnover. A bonus pool should be budgeted, based on targeted levels of achievement and communicated to the employees so that they understand how it works and what they have to do.

Actual monthly and year-to-date results should be posted so employees can monitor progress. Manager and supervisor bonuses should be based on the results of their departments. This promotes individual and group effort. Part of the pool is awarded across the board for team effort and part is awarded to selective individuals based on relative work ethic, achievement, and attitude.

An individual that stepped up to the plate above expected levels is rewarded for that particular achievement. Employees must know that each year stands alone and there will be good years and better years — the better years count.

Occasionally missing a bonus period can be as motivating as receiving the bonus because it reminds employees that these are not entitlements and must be earned. Look closely at your bonus program and find out if it needs restructuring. It can save you wasted dollars, promote efficiency and productivity, and motivate employees.

Employee Benefits

Employee-benefit costs have soared in recent years and, in some cases, are more important than the hourly pay rate. Some companies hand out to each employee an annual benefits value sheet that shows the dollar value of every employer provided benefit. In doing so, employees are made aware of their total compensation package, which is important if they are comparing to employees of other companies, which they do.

Offering additional fringe benefits can actually be less costly when adding these in lieu of or in addition to a smaller pay increase. The following are employee benefits that, properly structured, can be less expensive in the long run than employee raises and yet may be worth the same amount dollar wise to employees than a pay raise because they are tax free:

Pre-tax flexible spending accounts
Short-term disability insurance
Group term life insurance
Increase in employer portion of health and dental insurance premiums
Increase in employer match on 401(k) s
Dependent care plan

These are less expensive than comparable pay raises for two reasons. First, they are not subject to payroll taxes and second, if the employer cost is in terms of actual dollars rather than a percent, their cost will not compound annually like a pay raise will. One employee administrator who was already earning at the upper compensation range for her position was given the choice of a lesser raise or long-term disability insurance coverage. She opted for the disability coverage.

Reduce Staff Through Attrition

Companies that find themselves overstaffed may find it difficult to identify certain individuals to terminate, especially if it results in retained employees picking up their less-than-full-time duties. This could create unwanted morale problems.

However, individuals retiring or otherwise voluntarily moving on often provide an opportunity to reorganize and reassign duties and job descriptions to save the costs of a full-time position. It may require a parttime replacement or it may require a small increase in pay for affected individuals but the savings could be substantial. Base your department managers’ bonuses on targeted staffing levels and watch what happens.

Control Overtime

As indicated above, lower overtime targets could be a basis for bonuses. Overtime is sometimes necessary, especially when someone is absent or in peak business periods. However, in most businesses, overtime is excessive.

Have your accountant or bookkeeper tabulate last year’s overtime hours and related cost as a starter. In monitoring overtime, don’t forget to also track the hours and costs of outsourcing to temp agencies.

A decrease in one may result in an increase in the other. Savings could be achieved by allowing employees to take up to a week of overtime earned in additional paid vacation, but check your state labor laws first.

Restructure Retirement Plans

The laws and regulations governing the design and coverage of employer retirement plans has changed significantly in recent years, yet many companies have the same plan structure in place. More-recent safe harbor rules and discrimination restrictions have enabled some employers to change their plan design so as to enable owners to maximize their annual contributions at a lesser cost overall.

This may be done without reducing the current benefit to non-owners. If your retirement plan has not changed, it may be worthwhile to have a benefit plan consultant review your current plan design and employee census to see if you could benefit from a new plan design.

Conclusion

Business owners should view their employee compensation and benefits as a program to promote the well-being and objectives of both the individual and the organization. Hopefully you will find one or more useful ideas in this article to make your compensation program more cost effective, rewarding and motivational.

James B. Calnan, CPA, is a partner with Meyers Brothers Kalicka, P.C., Holyoke, Certified Public Accountants and Business Consultants; (413) 536-8510.

Proposed Changes Could Dramatically Impact Medicaid Planning

As part of the proposed Deficit Reduction Act of 2005, the U.S. Senate and House of Representatives each passed different bills on Nov. 3, 2005 and Nov. 18, 2005, respectively, the results of which could greatly impact long-term care (nursing home) Medicaid planning.

Although both the Senate version of the bill (S. 1932) and the House version of the bill (H.R. 4241) both impact Medicaid planning, the House version, if adopted by the Senate, could effectively eliminate most of the Medicaid-planning strategies currently being utilized to preserve assets in the context of long-term care planning.

The purpose of this alert is to highlight a few of the potential draconian changes in the Medicaid bills (the House version of the measure in particular), discuss the current status of the bills, and outline potential immediate planning strategies to consider.

By no means is this alert intended to be a comprehensive explanation of both bills in their entirety, but rather it is intended to draw attention to the most significant changes affecting most people who are contemplating Medicaid planning.

Look-back Period Changes

Under current law, if you apply for Medicaid, you are required to disclose to Medicaid any gifts made by the institutionalized or healthy spouse within the 36- month period preceding the date that the Medicaid application is filed. This period is referred to as the ‘look-back’ period. The House bill would extend the look-back period from 36 months to 60 months.

According to the current provisions of the House bill, the 60-month look-back period would apply to all gifts made after the enactment of the Act. Therefore, if gifting is an appropriate strategy for you, there is an incentive to attempt to make gifts immediately before a final version of the Act is enacted in order to avoid having your gifts be subject to a 60-month lookback period instead of a 36-month lookback period.

Transfer Penalty Starting Date Changes

If you or your spouse make a gift to charity or any person other than your spouse, and you subsequently apply for Medicaid within the look-back period, a transfer penalty may be imposed by Medicaid. In essence, Medicaid takes the position that if you give away cash or property that you could have otherwise utilized to pay for your long-term care, Medicaid will determine how many months worth of nursing home care you gave away and penalize you for that period of time.

In order to calculate the transfer penalty, Medicaid divides the value of a gift by the amount that Medicaid determines to be the average monthly cost of nursing home care in Massachusetts to arrive at the number of months penalty created by the gift.

Medicaid currently uses $232 per day (approximately $7,000 per month) as the average cost of nursing homes in Massachusetts. This amount is naturally below the actual cost of most nursing homes in the area, but by using a small dollar amount for the average cost, a larger transfer penalty results. Under current law, the penalty period begins to run on the date that you make the gift.

For example, if you gave $70,000 to a child on Jan. 1, 2005, a 10- month transfer penalty would result ($70,000 divided by $7,000 per month = 10 months) and the penalty period would begin to run on the date of the gift (Jan. 1, 2005) and would end 10 months later on Oct. 31, 2005.

Therefore, assuming your remaining assets were below the maximum amount of assets allowed for Medicaid eligibility (i.e. $2,000 for a single individual), you could qualify for Medicaid as soon as Nov. 1, 2005.

The House bill would change the date on which the penalty begins to run. The House bill provides that the penalty will begin to run on the later of (1) the date of the gift, or (2) the date that you are in a nursing home and you would otherwise qualify for Medicaid based upon the amount of assets that you own. In effect, for a single person this means that the penalty period will not start to run until your assets are spent down to $2,000, at which time you would not have sufficient funds to pay for your own nursing home care for the penalty period.

For example, assume that the House version of the bill is enacted into law on Dec. 31, 2005, you are single, you give $70,000 to a child on Jan. 1, 2006, and you enter into a nursing home on Sept. 1, 2006 with a total net worth of $2,000. The penalty period would not start to run on Jan. 1, 2006 (the date of the gift) but rather would start to run on Sept. 1, 2006, the date on which you entered the nursing home and had assets less than or equal to the asset limit.

Under this House bill regime, you would not be eligible for Medicaid until July 1, 2007. The problem that is presented with the House bill provision is that on Sept. 1, 2006 you only have $2,000 in the bank.

Apparently, the House expects that the person to whom the gift was made will pay for your care in a nursing home for the next 10 months.

As you can see, the House bill not only has a devastating impact on an institutionalized person who has made gifts within the look-back period, but it also could have a terrible financial impact on nursing homes as well. Nursing homes will be forced to make the difficult decision of evicting a resident who is unable to pay his or her monthly costs or the home would have to attempt to absorb the monthly cost of keeping the patient until he or she qualifies for Medicaid. In light of the fiscal crunch facing nursing homes in the United States, the latter option is not realistic.

The effective date of the potential change in the manner of calculating the transfer penalty is the date on which the Act is enacted. Therefore, transfers made prior to the enactment of the Act are ‘grandfathered’ under the current transfer of asset penalty rules.

Accordingly, if you are contemplating making gifts to loved ones or charities as part of a Medicaid planning strategy, such as making a gift of your home to your children and retaining for yourself a life estate, you should consult with a qualified Medicaid planning attorney as soon as possible to help you determine if making a gift is appropriate for you at this time. It would behoove you to make any such gift prior to the enactment of the Act in order to avoid a potential 60-month look-back period and the threat of the change in the manner in which the penalty is calculated.

While there are no guarantees that Congress will not make further sweeping changes to the bills prior to passing the Act, in most cases the negative taint associated with any gift can be eliminated as long as your loved ones are willing to give the gifts back to you if necessary to enable you to qualify for Medicaid or eliminate all or a portion of the transfer penalty.

Other Changes

A few other changes in the House bill that would adversely impact Medicaid planning include the following:

The use of annuities to convert Medicaid countable assets into allowable income would appear to be effectively eliminated (both for married couples as well as single individuals).
The value of the refund portion of entrance fees paid to continuing care retirement communities and life care communities may count toward the Medicaid asset limitations.
The current benefit of protecting your home from Medicaid liens by purchasing a long-term care policy meeting certain minimum standards law may be greatly restricted or potentially eliminated.

There are other potential rule changes contained in both versions of the Medicaid reform bills not discussed herein, as they are fairly technical and are beyond the scope of this review. The Senate bill does not contain the harsh revisions to the lookback period and transfer penalty changes contained in the House bill. However, among other changes, the Senate bill would eliminate the annuity planning strategy for single individuals and could restrict the benefits associated with Massachusetts residents purchasing long-term care policies.

The next step in the process toward the passage of the Act is the reconciliation of the House and Senate bills by conference committee. Once the conference committee reconciles the bill, the Act will become effective on the date the President Bush signs the bill out of conference.

Bruce E. Devlin, Esq. is an associated attorney at the law firm of Robinson Donovan, P.C.; (413) 732-2301.

Something to Work on

Features Sections Supplements

To Climb the Career Ladder, You Must Have Good Balance

We’ve all heard the saying that all work and no play makes Jack (or Jill) a dull person. Well, that saying is not just a cute statement of life. It actually means that a person who never takes time off from work becomes both boring and bored. So if you opt to work seven days a week, 12 hours a day, you’re doing yourself more harm than good.

No matter what part of the country you work in, no matter what your background, no matter what your family or financial situation, you must have a balance between your personal and professional life. In fact, it’s impossible to produce at high levels without a personal life.

Yes, this philosophy goes against the American work ethic, which says to push yourself to the breaking point to get ahead. So many people these days think it’s normal to work seven days a week, to never take a vacation, and to sacrifice family time for financial gain. Well, that’s not the case in business. That’s right … if you want to reach the top dog status, you MUST take time off and have a work/life balance.

The fact is that you cannot work 90 hours a week and be a millionaire. Sure, you may be able to pull it off for a short period of time, but fairly quickly something will start to fall apart. Maybe it’ll be your marriage or your health. Whatever it is, you can be sure it will happen. What’s funny, though, is that the top producers— the ones who consistently earn at high levels — always have family and personal time built into their schedules.

Set the Expectation

Unfortunately, many businesspeople feel guilty when they spend time with their family or pursuing personal interests. They feel they must be available for their clients at all times — weekends and evenings if need be. Look at many business cards today and you’ll see that many give out their cell phone number, home number, and some even their home address.

Unknowingly, these workers are setting the expectation that they are available 24/7, rain or shine, sickness or health. And that’s no way to run a business.

While you should be accessible for your clients, you must also have some boundaries in your professional relationships. If you’re new to the business, then you more than likely will have to work weekends to get yourself established. That’s fine. But you still must plan some other time off for yourself during the week.

If you’re established in the business and you are still working every weekend, then maybe you really need to look at how efficient you’re being while you’re working.

Are you sticking to your established schedule? Once your business is established, there’s no reason for you to be working seven days a week. For example, one real estate agent in Colorado only works three days a week, sells about 270 homes a year, and earns approximately $4.5 million a year. That’s efficiency.

Ultimately, it’s your responsibility to tell clients what your days off are. They won’t guess, and they can’t read your mind. So if they ask you to meet with them on Thursday, and you take off Thursdays, you must set the expectation.

Don’t meet with them anyway and then be mad that they made you work on your day off. The client did not make you work on your day off; you made yourself work on your day off because you did not set the expectation. Hiding your schedule from clients will only create problems later.

What to Schedule

People often wonder what kind of personal things they should be putting in their schedule. Put in whatever is important to you. Some things you may want to schedule are your kid’s sports events, dinner with your spouse, time to work on your favorite hobby, commitments to personal groups or clubs you belong to, etc. There’s no right or wrong thing to schedule. The important thing is that you do it.

But putting these items in your schedule is only step one. Next you need to have accountability to these personal items.

Perhaps your spouse can keep you accountable for your scheduled ‘date nights.’

Maybe your kids will keep you accountable for going to their events. Whatever it is, be sure to tell your family and friends what you’re scheduling in your planner. When they know you have time set aside for them, they’ll help ensure you keep your word. After all, you don’t want to let down your family and friends, do you?

How Much Balance is Enough? When you’re starting out in the business, you must have at least one full day to recharge your batteries. This is one day when you’re completely unplugged from the office and from clients. You don’t take any phone calls, return any E-mails, or even think about work. This is a day just for you. This may sound scary for some people, especially you Type A control freaks, but relax … the office won’t fall apart without you. And your clients won’t abandon you and work with another agent just because you took a day off. Remember, set the expectation upfront and no one will mind.

As your business grows, or if you’re already established in the business, then you must take at least two days off per week. They don’t have to be two consecutive days (although that is best), and they don’t have to be weekends. You simply need to take two days. Why? Because as you get established, your efficiency should naturally be increasing. You can accomplish more in less time, so there’s no reason to work more than five days per week. Also, when you produce at higher levels, your brain and body will require more relaxation time so you can stay at peak performance.

Finally, when you push yourself and overwork yourself, you begin to develop a sour attitude. You may secretly resent those clients who want to meet with you on weekends or whatever days off you want. You may resent colleagues who seem to work less but make more money than you. Resentment, anger, and frustration are not traits of successful businesspeople. A positive attitude, enthusiasm, and a love of the business are the traits that propel people to the top. And you can’t possess those traits consistently if you’re not allowing yourself time to rest.

A Little R & R Goes a Long Way The bottom line is that you must have a balance between your work and personal life. Without it, your career, your health, and even your family life will suffer.

No career is worth that price. So work diligently to maintain balance. When you do, you’ll be able to hob-knob with all the other top dogs as you sit by the pool on your day off.

A real estate trainer and speaker, Jerry Pujals helps agents nationwide increase their production, efficiency and sales. His forthcoming book, “Secrets to Real Estate Success,” offers strategies to help others achieve their real estate goals;www.jpsalessystems.com.

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Diggin’the New Digital

Camera Manufacturers Say It’s Time to Throw the Kodachrome Away

Charles De Luca, product manager for Nikon USA, demonstrates the ‘Face Focus’ feature on a new digital model

When Paul Simon immortalized Kodak’s Kodachrome slide film in his 1973 hit of the same name, it’s unlikely that he realized the tune would eventually serve as a swan song for an entire medium.

Indeed, the days of film photography are nearly over, and Paul Simon fans of tomorrow will soon be Googling ‘Kodachrome’ to find out what the heck that song is about.

Like all personal electronics, new camera offerings for 2006 are trending toward smaller, sleeker styles with more capability and finer picture quality, at increasingly affordable prices, but film doesn’t even enter the picture, as this review of new camera techology reveals.

Compact, or point-and-shoot, digital cameras have eclipsed film camera sales, and sales of digital single lens reflex (SLR) cameras, those with interchangeable lenses, are expected to reach their highest rates yet this year.

Kodak itself might serve as the best illustration of the shift. Once synonymous with film, the company’s future was grim, until it caught the digital wave and secured the top sales spot in the U.S. earlier this year, topping 2004 numbers by 41%. Other companies, including digital giants like Sony and photographic staples such as Canon, Fuji, and Nikon are seeing similar success.

That’s because in terms of both cost and ease of use, digital cameras have reached the point at which they’re accessible to just about everyone. Unlike the first few digital cameras to hit the market more than a decade ago, they’re simple to operate and designed to take a beating. They come equipped with autoflash, autofocus, and red-eye reduction, use memory cards that include up to 1 GB of storage space, and nearly all include both optical and digital zoom.

They also start as low as $99, rising in price depending largely on zoom capability and the number of effective megapixels – most newly released digital cameras are capable of shooting at 5.0 megapixels or more.

Extra features also play a role in price, although many are becoming the norm as photo technology progresses. Many new digital cameras, for instance, come equipped with more than a dozen different shooting modes (portrait, landscape, and close-up or macro modes are some of the more recognizable settings; newer offerings include backlighting, panoramic assist, and dawn/dusk modes).

‘Capture modes’ are also advancing – in addition to simply snapping one photo at a time, most new digital cameras include options such as multi-shot – taking several photos with one press of a button – movie modes, which allow for digital video, and color options, which allow the photographer to take a picture in full-color, black and white, or even with sepia tones.

And photo-editing options are being seen more frequently on new camera models, and allowing for immediate red-eye correction, cropping, image sharpening, or voice memos, among other tools, before a photo is downloaded to a computer or printer. “Give Us Those Nice, Bright Colors”

A Glossary of Digital Terminology

Combined Zoom
Refers to the total zoom capability of a camera, when the optical and digital zoom are combined. Optical zoom means that mechanisms within the camera are actually moving to zoom in on the subject; digital zoom is a digital enhancement of the optical zoom.

LCD
Liquid crystal display; refers to the screen on the back of most digital cameras. The larger the screen, the easier it is to see the image and navigate through menu options.

Matrix Metering
The camera measures optimum exposure automatically, by comparing 256 areas of the frame.

Megapixel
One megapixel equals one million pixels, the tiny dots that create a digital photo. The more megapixels a camera is capable of using to shoot and save a photo, the better an image’s quality will be when printed, and the larger a print can be made. On a camera or in its literature, megapixels are typically denoted in numerical form, such as ‘3.1’ or ‘5.0.’ A camera with 4.0 megapixels will yield prints up to about 8×10. Most new cameras on the market have at least 5.0 megapixels.

MB/GB
Megabytes and Gigabytes – refer to the amount of memory available on a digital camera’s internal memory or on a memory card. A memory card with 1GB of storage space will hold hundreds of photos at a time.

Noise-reduction Mode
Reduces the ‘busy factor’ in photos taken with a long exposure – makes for a clearer photo, especially at night.

Panorama Assist
Allows you to take several side-by-side photos, then combine them later using photo editing software.

Nikon, for example, recently unveiled five new models in its Coolpix collection that offer many of the new features that are quickly becoming standard among digital cameras.

One feature common to all five models is Face Priority AF, which automatically focuses on a subject’s face to ensure clear, crisp portraits.

But the new models also add to three different series of cameras – the ‘L’, ‘S,’ and ‘P’ series, which are geared toward different types of photographers and tailor new features toward those audiences.

The P series appeals to consumers looking for the latest in advanced technology, and as such, includes one of the newest offerings among digital cameras – Wi-Fi, which allows for the wireless transfer of photos and digital video from the camera to a nearby computer or printer, and is available on the new P1 and P2 models ($549 and $399*).

“These are the first cameras to offer wireless technology,” said Charles De Luca, product manager for Nikon. “It’s a great feature if you’re, say, shooting photos at a party – the photos can be printed and ready for you without ever having to leave the fun.”

The technology also allows for the creation of slide shows, complete with music, and wireless printing with the use of the PD –10 wireless printer adapter (which De Luca said is about the size of a lemon), and a printer enabled with PictBridge, the industry standard for printing photos without the use of a computer.

Several camera, camcorder, printer, and mobile phone manufacturers are now creating PictBridge-compatible products, including Nikon, Canon, Pentax, Fuji, Kodak, Olympus, Hewlett-Packard, Panasonic, and Sony.

“The wireless capabilities open up a whole new set of options for people,” De Luca said. “With the ability to automatically create a live slide show or transfer photos to the computer, people can get their prints faster as well as send them right away to others – imagine getting a slide show of an event you can’t attend, while the event is still going on.”

Increasingly, digital cameras are being tailored to enhance those moments when they are most commonly used – during family functions, vacations, and at special events in general, and that includes the incorporation of new technology such as wireless transfer, digital video, and other features. But manufacturers have not lost sight of the style factor – many shoppers rate the look of a piece of equipment right up there with capability and durability.

Nikon’s Coolpix L series, for example, caters to the novice photographer, and the new L1, ($329) with 6.2 megapixels, features a large, 2.5-inch LCD screen set in a small, pocket-sized body.

The S series tends to appeal specifically to those in the market for stylish, designoriented electronics, and the new S3 ($379), dubbed ‘beautiful in black’ by Nikon, adds to that line, previously made up of only silver cameras.

New cameras in the Canon Digital Elph series, one of the most well-known product lines among all digital cameras, also lean heavily on design as a major selling-point.

All of the Elph models in the PowerShot line measure just a few inches, are slim in width, and come in a variety of finishes. The new PowerShot SD30 ($399) includes 5.0 megapixels and a 10x zoom, but also comes in four different colors with names like ‘Rockstar Red,’ ‘Tuxedo Black,’ and ‘Glamour Gold.’

Similarly, Fuji’s new additions to its digital line include the FinePix Z1, a product designed specifically with aesthetics in mind. Retailing for about $400, the Z1 includes a U-shaped cover that conforms to a palm, a sliding body that protects the camera’s lens while enhancing its look, and comes in both silver and black.

It also measures about 3.5 inches x 2.2 inches, following the trend toward smaller, more lightweight design that all digital camera companies are following.

Camera Ready?

B.J. Adams, a product and market analyst for Pentax, explained that it’s not typically the technical explanations of digital cameras that most shoppers find attractive, but rather the features that augment those capabilities, including compact, easy-to-use design.

That has been one goal for Pentax’s Optio line, which includes a number of cameras designed to appeal to various lifestyles. Most new digital cameras only weigh between five and seven ounces – the Optio WPi ($349) weighs in at only 4.2 ounces, and that has become one of the camera’s main selling points.

“It’s all about taking a lot and putting it in a very small package,” Adams said, noting however that while bells and whistles and snazzy design are important to many consumers at the point of sale, most will come to appreciate the capability a camera has that allow them to simply take better photos, and more of them.

The WPi is waterproof – able to take photos in five feet of water for up to 30 minutes. Perhaps more important, though, is the 6.0 megapixel camera’s versatility in many situations – during a romp with a slobbery dog, a child’s bathtime, or hike through misty mountains.

Adams dubbed it “life-proof.” “It tracks people very well,” he said, noting that not only is the camera durable, but it can also take a clear action photo and a well-framed portrait shot using a nine-point autofocus system that includes ‘sport’ and ‘pet’ modes.

The WPi was also designed to include an optical and digital zoom, like most digital cameras, but with a unique twist – while most optical zooms require a lens that extends from the camera body and can pose an added risk for damage if given a good whack, the optical zoom on the Optio WPi is actually encased within the camera. “All of the optics are inside the camera,” Adams explained, “and actually turn a corner within the camera in order to allow that design.”

Pentax is also currently featuring two other cameras as part of an overall marketing push for their ‘lifestyle’ cameras – the Optio S60, an inexpensive beginner’s model, and the istDL, a digital SLR.

“The S60 retails for $199, and is a great starter camera for anyone who is not familiar with digital photography or even with photography in general,” Adams said. “It has a help-mode incorporated into the camera that gives step-by-step directions, and the menu has a zoom, which is especially helpful for people with poor eyesight.

“There’s also room to grow and learn with this camera,” he continued. “As people learn, they can try new things, and included software allows them to share their photos online with friends and family.”

Additionally, the istDL ($799, which includes a standard lens) is marketed toward more sophisticated photographers, but includes some of the same features that many consumers are looking for – lightweight design, diverse capabilities, and durable manufacturing.

“The istDL is a great traveler’s companion,” Adams said. “It takes great photos and is compatible with a whole pool of Pentax lenses, so photographers can get creative. But it’s also one of the smallest, most lightweight SLRs out there, and that’s what people are looking for.”

…Forget About Rewind

And for those people still frightened by the prospect of a camera that doesn’t require loading those small, cylindrical canisters into the back, Adams said today’s camera manufacturers are more sensitive than some might expect.

“This is our business,” he said. “We understand completely how many changes have occurred in the photography arena, and our products are very consumer-centric. There is a bridge from film to digital, and all are welcome to cross.”

* – Manufacturer’s suggested retail price. Jaclyn Stevenson can be reached at[email protected]

Who’s Your ISP ?

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For Sale, For Lease

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The ‘Domestic Production Deduction’

A New Tax Consideration for ‘Producers’

Does your business ‘produce’ anything? Beginning in 2005, any business that is considered to be a ‘producer’ by the Internal Revenue Service is entitled to a new deduction called the “Domestic Production Deduction.” The dollar amount of the deduction will equal 3% of your income in 2005, and this percentage will steadily increase in future years to a maximum of 9% by the year 2010. But more on that later.

First things first. In order to qualify for the deduction, you must determine if your business is a ‘producer.’ As with any tax law provision passed by Congress, there is a long-winded definition that goes like this: A producer is a taxpayer who derives revenues from the “lease, exchange, rental, license, sale or other disposition of tangible property that was manufactured, produced, grown, or extracted (‘MPGE’) in whole or significant part within the United States.”

‘MPGE’ is further defined to mean “activities relating to manufacturing, producing, growing, extracting, installing, developing, improving, creating, processing, manipulating, refining, and combining.”

There you have it. If you can make a reasonable argument that your business activity falls within the above definition, you should qualify for the deduction. In many cases, the determination will be obvious, but in some cases not so obvious.

For example, most manufacturing and agricultural activities clearly qualify (note that the activity has to be in the U.S.). Most service businesses will not qualify. But there are myriad business activities that may be questionable. For example, what about a dentist filling cavities? There will be many situations where tax accountants and their clients will have some interesting discussions, to say the least.

In addition to the above general definition, the tax law also carves out certain business activities that will specifically qualify, as follows:

Real estate construction
Architectural and engineering services for real estate construction
Film production
Production of natural gas, electricity, or potable water
Production of computer software (but not software accessed via the Internet)

Calculating the Deduction

Once you determine that you qualify for the producer deduction, the next step is to figure the amount of the deduction. For 2005 and 2006, the deduction will equal 3% of your income from the production activity (or your taxable income if less). From 2007 to 2009 the percentage will be 6% of income, and in 2010 it will top out at 9%.

For example, in 2005 for every $10,000 of income, you’ll get a deduction of $300. This will in turn create a tax savings based on your marginal tax rate (e.g. marginal tax rate of 33% would yield a tax savings of $100 for every $10,000 of income).

If all of your business activities qualify for the production deduction, the above computation is relatively quick and painless for your accountant. He or she will simply multiply your taxable income by the percentage, and that’s the deduction. There is also a relatively simple one page tax form (Form 8903) that the Internal Revenue Service has provided for claiming the deduction.

On the other hand, there might be significant complications if you are a partial qualifier, that is, some of your business activities qualify and some do not. In those situations, your total business income will have to be broken out between the qualifying production activities and the non-qualifying non-production activities. That will require revenue and cost allocations that might be extremely complicated, depending on the particular situation. It could be an accounting nightmare that is more costly than the deduction is worth.

Here are some other points to consider:

The producer deduction applies to tax years beginning on or after Jan. 1, 2005. In general, this means it will first apply to taxpayers with calendar years ending on Dec. 31, 2005.
Any type of taxpayer can qualify, including sole proprietors, partnerships, limited liability companies, corporations and trusts.
The deduction cannot exceed 50% of W-2 wages paid by the business, which means that if the owner runs the business alone with no employees, there would be no producer deduction.
The producer deduction will not be allowed on Massachusetts tax returns.

Conclusion

The new Domestic Production Deduction represents tax savings for certain businesses, therefore this is a tax provision that you and your accountant should know about.

Rodney McCorkill, CPA Director of Tax Services for Springfield-based Moriarty & Primack, P.C; (413) 739-1800.

Introducing the Roth 401(k)

On Jan. 1, the U.S. government will allow businesses to offer employees a new retirement option the Roth 401(k).

The new Roth 401(k) plan combines features of a traditional Roth IRA account with those of regular 401(k) account. This new program enables employees to contribute after-tax dollars to their retirement funds in place of, or as part of, their percentage of contributions. The advantage of an after-tax contribution is a tax-free withdrawal of the contributions and their earnings at retirement.

Although this plan has such benefits, it is important to understand what is involved when implementing a Roth retirement package. With so many retirement options to choose from, education regarding the effects this program can have for businesses and employees is of paramount importance.

The Pros

From an employee perspective, the greatest advantage of the new Roth 401(k) is that no income taxes will ever be paid on the earnings for these contributions. Moreover, it also provides an avenue for individuals with extra cash for investment, or those near retirement, to add to or build up their savings. Unlike a traditional 401(k), the Roth option enables a person to roll their account into a Roth IRA that doesn¹t have minimum distribution amounts at age 70. Because of these benefits, it is easy to understand why a Roth 401(k) might be an attractive retirement option for certain investors.

From an employer¹s point of view, the biggest benefit is easy to see. Since there is no additional cost to add a Roth option to a 401(k), other than a plan amendment, employers can add a benefit without any major hassles. The Roth 401(k) enables employers to broaden their retirement options and help their employees save for retirement at no real cost.

The Cons

Despite these benefits, businesses and employees need to be aware of some of the changes created by a Roth plan. For example, employees need to realize
that participation is with after-tax dollars and will affect their weekly take-home pay. Contributions made to a regular 401(k) are pre-tax, which means you get the benefit of investing your money before the government gets its cut.

With the Roth 401(k), any monies you contribute will have already been taxed. Because of this, employees need to make sure that it makes sense mathematically for them to participate. After retirement, most people will find themselves in a lower tax bracket because they no longer have an income from a job. Why pay taxes now when you are in a higher tax bracket, which is what the Roth 401(k) requires, versus in retirement when your tax bracket is likely to be lower? For example, a pre-tax investment of $15,000 requires you to earn $15,000. However, when utilizing an after-tax plan, you will need to earn $25,000 (assuming a 40% tax bracket) to make the same contribution.

Businesses also face a significant issue when utilizing a Roth 401(k). Employers have a fiduciary responsibility to educate their employees about the risks and rewards of their retirement offerings. That process is already difficult, but now businesses will be required to communicate the advantages and disadvantages of pre-tax and after-tax contributions which, if not done effectively, could create confusion. This uncertainty might reduce overall participation by employees because they may not feel well enough informed to make a decision. Also, as the implementation of these Roth plans has never been done before, there could be challenges for the testing and administration of these plans.

Making the Roth Choice

Since the Roth 401(k) plan is currently only in effect until 2011, many businesses might decide against offering it because it could be repealed after only six years. However, if they do decide to make this extra benefit available, there are clearly some individuals who might benefit from a Roth 401(k) package, especially those who have extra cash to invest in their retirement.

As always, the key to any retirement plan is moderation and diversification. Therefore, it is important for businesses and employees to fully understand their options before making any decisions.

Aviva Sapers is the CEO of Sapers & Wallack, an asset management firm specializing in insurance and benefits planning; (617) 225-2600.

Angy’s Food Products Inc.
77 Servistar Industrial Way
Westfield, MA 01085
Chapter: 11
Filing Date: 12/07/05

Brunelle, Timothy W.
122 Squire Lane
Springfield, MA 01118
Chapter: 13
Filing Date: 12/12/05

Buchanan, Amy
61 Arthur St.
Springfield, MA 01104
Chapter: 13
Filing Date: 11/25/05

Buchanan, William L.
61 Arthur St.
Springfield, MA 01104
Chapter: 13
Filing Date: 11/25/05

Delvalle, Jose M.
228 Tiffany St.
Springfield, MA 01108
Chapter: 13
Filing Date: 12/08/05

Demers, Alicia E.
28 Entrybrook Dr.
Springfield, MA 01108
Chapter: 13
Filing Date: 12/14/05

DiCarlo, Jeanne A.
4 Bull Head Road
Southampton, MA 01073
Chapter: 13
Filing Date: 12/01/05

Fortier, Milca R.
80 Kanawha Ave.
Agawam, MA 01001
Chapter: 7
Filing Date: 12/02/05

Gonzalez, Maribel
81 Elcon Dr., Apt. 20
Chicopee, MA 01013
Chapter: 7
Filing Date: 12/08/05

Holloway, Angela J.
Holloway, James T.
64 Hillside Dr.
Springfield, MA 01118
Chapter: 13
Filing Date: 12/06/05

Johnston, William
Timothy
Johnston, Mary Desmarais
170 Washington Blvd.
Springfield, MA 01008
Chapter: 13
Filing Date: 11/17/05

Larrivee, Steven R.
27 New Ludlow Road
Granby, MA 01033
Chapter: 7
Filing Date: 12/01/05

Laureano, Maria D.
29 Parkside St.
Springfield, MA 01104
Chapter: 13
Filing Date: 12/13/05

McWhinnie, David J.
206 Palmer Road
Monson, MA 01057
Chapter: 13
Filing Date: 11/23/05

Melendez, Tricia Dawn
16 Stuart St.
Springfield, MA 01119
Chapter: 13
Filing Date: 11/23/05

Merceri, Darrell Shane
32 Byers St., Apt. 308
Springfield, MA 01105
Chapter: 7
Filing Date: 11/23/05

Mestres, Francisco J.
21 Sumerset St.
Springfield, MA 01108
Chapter: 13
Filing Date: 11/28/05

Nero, Walter J.
190 Englewood Road
Longmeadow, MA 01106
Chapter: 13
Filing Date: 11/17/05

O’Brien, Donna Marie
675 Pendelton Avenue
Chicopee, MA 01020
Chapter: 13
Filing Date: 12/09/05

Pike, Jeffrey D.
94 Paradise St.
Chicopee, MA 01020
Chapter: 7
Filing Date: 11/23/05

Poplawski, Kathryn Marie
32 Irene St.
Chicopee, MA 01013
Chapter: 13
Filing Date: 11/18/05

Smart, Laura H.
6-8 Bates St.
Westfield, MA 01085
Chapter: 13
Filing Date: 12/05/05

Thompson, Philamena M.
298 Ambrose St.
Springfield, MA 01109
Chapter: 13
Filing Date: 12/13/05

Local Jobs Outlook Positive

SPRINGFIELD — A new survey suggests that employers in the Greater Springfield area are poised to hire staff during the first quarter of 2006. Manpower
Inc.’s quarterly survey for Western Mass. is very positive, according to Cathy-Ann Paige, Northeastern vice president for Manpower. Paige acknowledged that hiring has not gone as fast as it has in the past, particularly because there are fewer prospective employees with the right skill sets for the jobs available. She added that survey results indicate businesses remain cautious when making hiring decisions, however, if the right person comes along, they will be hired. Paige estimates that 47% of area businesses interviewed expect to add jobs in the first quarter. Manpower surveys approximately 16,000 employers nationwide for its quarterly report.

CFOs: Financial Incentives to Hold Steady in ’06

MENLO PARK, Calif. — The majority of the nation’s employees are not expected to receive larger raises and bonuses in 2006 than they did in 2005, a recent survey finds. Less than one-third (29%) of chief financial officers (CFOs) recently polled said they will give higher salary increases in the coming year, and just 20% anticipate boosting bonus amounts. The survey was developed by Robert Half International Inc. and was conducted by an independent research firm that includes responses from more than 1,400 CFOs from a stratified random sample of U.S. companies with 20 or more employees. CFOs who said they expected to increase raises and bonuses in 2006 were asked by what percentage these forms of compensation would rise. The mean responses were 5% for raises and 7% for bonuses. Many companies may be hesitant to increase employee compensation because of other expenses impacting the business, including rising health care and energy costs, according to Max Messmer, Chairman and CEO of Robert Half International Inc. Messmer added that being overly cautious can be detrimental, particularly as the competition for top candidates intensifies. Firms that fail to reward good performance risk losing their best talent, he added.

MassMutual Cites Harassment by Galvin

SPRINGFIELD — MassMutual Financial Group recently filed papers in Suffolk Superior Court accusing Secretary of State William F. Galvin with making “baseless, inflammatory and harassing public statements” that are causing harm to the company. Galvin is quoted as saying in a Nov. 23 Reuters dispatch that MassMutual continues to “stonewall the process at every turn.” Galvin has made several legal attempts over the past few months to force MassMutual to turn over
documents that involve the dismissal of Chairman and CEO Robert J. O’Connell last summer. MassMutual contends it has provided all relevant documents to Galvin, and would include two internal reports on O’Connell’s dismissal if Galvin agrees to keep the reports confidential. On numerous occasions, Galvin has refused to promise confidentiality since the reports come under the state’s public access law. MassMutual has also provided the internal reports to the state Division of Insurance and the attorney general’s office, which are continuing their inquiries. Galvin, as the state’s chief securities regulator, has jurisdiction over fraud in the sale or purchase of securities or in advising people on the purchase of securities. However, MassMutual contends that the information Galvin seeks involves only alleged violations of nepotism and company policy, not securities fraud.

WNEC Announces Admissions Agreements With STCC and HCC

SPRINGFIELD – Western New England College President Dr. Anthony Caprio, Springfield Technical Community College President Ira Rubenzahl, and Holyoke Community College President William Messner announced today that WNEC will offer HCC and STCC students dual admission under a new joint admissions program. The agreement will allow students accepted to HCC and STCC to also be accepted at WNEC. It also provides for academic support for students at WNEC while they attend one of the two community colleges. The agreement between the college and the two community college will emphasize collaborative communication and jointly supported advisement of students, and students who take advantage of the joint admissions option will be encouraged to use the WNEC library and support programs, engage in frequent contact with faculty and advisors, and to attend campus events. Students will also be eligible for scholarships at WNEC.

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

AMHERST

Amherst Commer. Assoc. LTD
PARTN.
370 Northampton Road, Bldg. 5
$5500 — Construct assessable ramp

Amherst Shopping Center Association
181 University Dr.
$17,000 — Modify existing
sprinkler system

D.M.P Trust
64 Montague Road
$7,000 — Separate one of
three bays in existing garage
to insulate for winter use

Eric Perkins
408 Northampton Road
$7,166 — Install new windows
Village Auto Service
24 Montague Road
$10,000 — Install new roof

NORTHAMPTON

Cooley Dickinson Hospital Inc.
30 Locust St.
$6,500 — Remove plumbing
fixtures, construct wall to
create two offices

Joe-Mae Realty Associates
147 Main St.
$3,675 — Rebuild parapit wall
between buildings

Smith College
West Street
$60,000 — Replace roof —
physical plant building

SPRINGFIELD

Baystate Medical Center
759 Chestnut St.
$300,000 — Sleep-study
observation room

Beth El Temple
979 Dickinson St.
$150,000 — Interior alterations

Jon Goff
125 Carando Dr.
$45,000 — Addition for shipping

Mercy Medical Center
271 Carew St.
$132,700 — Renovate office space

Price Cutter Inc.
2633 Main St.
$5,400 — Alterations

St. Johns Church
69 Hancock St.
$129,000 — Air
conditioning, lighting,
general construction

WEST SPRINGFIELD

F.L. Roberts & Co. Inc.
916 Riverdale St.
$5,000 — Alter for reoccupancy

Mike Kravitz
30 Capital Dr.
$22,000 — Renovate office space

Pioneer Spine & Sport
1275 Elm St.
$11,500 — New Entrance

WESTFIELD

Brooks Pharmacy
7 East Silver St.
$5,500 — Ramps

Mark Greenbers
587 East Main St.
$50,000 — Interior renovations

Westfield Women’s Club
16 Court St.
$19,000 — Replace columns

Süddekor Honored for Economic Development
AGAWAM — Süddekor LCC recently received honorable mention from the Mass. Alliance for Economic Development for its impact on economic development in the western part of the state. The company received recognition for opening a $20 million, 108,000-square-foot paper-treating plant in East Longmeadow, which added 37 jobs to the region’s economy. With the addition of the new treating plant, Süddekor will add capacity for impregnation of the papers prior to laminating. The company’s new facility is located on 22 acres, which will provide space for expansion of up to 300,000 square feet. Süddekor
LLC is a wholly owned subsidiary of Süddekor Printer GmbH & Co. KG, headquartered in Laichingen, Germany. The company started production in Agawam in 2000.

Solutia Plant Earns OSHA ‘Star’
SPRINGFIELD — Solutia Inc.’s Indian Orchard plant has been recertified for an
additional five-year membership in the prestigious ‘Star’ Voluntary Protection Program (VPP) of the U.S. Labor Department’s Occupational Safety and Health Administration (OSHA). The manufacturer of plastic sheeting, which employs 560 workers at the Indian Orchard plant, continues as part of an elite corps of approximately 1,370 workplaces nationwide that have earned VPP recognition. The ‘Star’ recertification came after an OSHA team’s thorough on-site review of the plant’s safety and health programs, interviews with employees, and a tour of the work site. The plant was first certified as a ‘Star’ site in February 1997 and recertified in September 2000. VPP companies achieve average injury rates 50% lower than other companies in their industry.

Kanzaki Gets Green Light for Expansion WARE — The town’s planning board recently approved a special permit for Kanzaki Specialty Papers Inc. to build a 44,000-square-foot addition to its existing building. The company manufactures coated papers that are used in inkjet printing as well as other paper products. The expansion plans will also add 13 jobs to the local economy, according to company officials. The permit was approved with stipulations ranging from a new traffic plan to assurances there would not be an increase of effluent to the town sewer system.

UMass Dining Commons Set for $10M Renovation
AMHERST — Starting in January, the Berkshire Dining Commons at UMass Amherst will undergo a $10 million renovation to improve students’ dining experience. The renovation project is expected to be completed by August, according to Ken Toong, director of dining services. Toong said the expanded 26,000-square-foot facility in the Southwest residential area will have 800 seats, an increase of 120. When completed, the new space will feature a stand-alone vegetarian and vegan station, expansive salad, fruit, and soup bar, hot food stations with rotating cuisine, and a made-to-order Pan Asian station. In addition, grill and pasta stations are planned, as well as an on-site bake shop and a separate grab-and-go takeout area. Students will be able to dine from 7 a.m. to midnight. During the renovation, said Toong, the university will make special arrangements to reduce inconvenience for students, including expanded shuttle service to other dining areas on campus.

UMass Researchers to Study Geohazards.
AMHERST — UMass Amherst scientists are part of a collaborative project that recently received nearly $2.4 million from the National Science Foundation (NSF) to develop worldwide protocols for identifying and studying offshore geohazards, including earthquakes that can trigger tsunamis. In addition to helping engineers, geologists, and geophysicists understand the nature of geohazards and identify where they might occur, protocols established by the project will also help governments and regulatory agencies make moreinformed decisions about shoreline development, building codes, and international agreements related to populations located in harm’s way, according to Don DeGroot, civil and environmental engineering. The protocols will be designed to offset or minimize the damage from incidents such as the Sumatra earthquake and tsunami of December 2004, which killed more than 283,000 people and displaced some 1.1 million others in 10 countries throughout South Asia and East Africa. Collaborators in the project include Tufts University, Northeastern University, Vassar College, the University of California Davis, the International Centre for Geohazards at the Norwegian Geotechnical Institute, and the Centre for Offshore Foundation Systems at the University of Western Australia.

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
Select Energy Inc. v. Olde Hadleigh Grill
Allegation: Breach of contract — Failure
to pay for goods and services: $6,925.89
Date Filed: Nov. 21

HOLYOKE DISTRICT COURT
Guard Insurance Group v. Quality Looseleaf Co. Inc.
Allegation: Breach of contract — Failure
to pay for workmen’s comp insurance:
$2,606.00
Date Filed: Nov. 10

SPRINGFIELD DISTRICT COURT
Select Energy Inc. v. Orlando Alban Jr.
d/b/a Mason Food Market
Allegation: Breach of contract — Failure
to pay for goods or services: $6,097.03
Date Filed: Oct. 26

CACV v. Gary E. Dion and Chicopee
Concrete Services Inc.
Allegation: Breach of contract — Failure
to pay for services: $2,699.24
Date Filed: Nov. 18

Acme Site Work Inc. v. Sentry Services Inc.
Allegation: Breach of contract — Failure
to pay for goods and services: $10,435.73
Date Filed: Nov. 22

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

EASTHAMPTON

Injury Rehab Medical
Assoc. Inc., 1 Northampton
St., Easthampton 01027.
Alexei S. Levine, 86
Crossbrook, Amherst 01002.
Injury rehabilitation.

HADLEY

Pioneer Valley Learning
Inc., 104 Russell St., Hadley
01035. Christina M. Buehrle, same.
To provide supplemental education services and materials for students preschool through adult.

LONGMEADOW
Creative Design Works
Inc., 67 Forest Glen Road,
Longmeadow 01106. Paul G.
Lagunowich, same. Interior design, decorating and related activities.

NORTHAMPTON

Lulublue Inc., 97 Laurel
Park, Northampton 01060.
Jena Sujat, same. Retail gifts and art sales. Quality Care Nurse Staffing

Agency Inc.,
13 Old South
St., Suite 2C, Northampton
01060. Fola Fagade 212
Acrebrook Dr., Florence
01062. Provider of temporary medical personnel.

SOUTHAMPTON

AAP Consulting Inc.,
76 Whiteload Road,
Southampton 01073. Andrea
Przybyla, same. Selling
nutritional supplements to
practitioners.

SPRINGFIELD

Certified Environmental
Technologies, Corp., 15
Park St., Loft 304,
Springfield 01103. Richard
A. Britt, 22 Rachel St.,
Springfield 01129.
Management services/
brokers, distributor of products.

Champion Foods Inc.
, 355 Belmont Ave.,
Springfield 01108. Antonio Collado,
same. To own and operate a retail establishment.
Ogirri Corp.,
164 Balboa
Dr., Springfield 01109. Henry Ogirri, same. To engage in the wholesale and retail selling of food products and groceries. Seeley Capital

Management Inc., 1365
Main St., Suite 320,
Springfield 01103.
Christopher J. Seeley, 101
Sheffield Ave., Longmeadow
01106. Investment advisory
services.

WESTFIELD

DC Cable Inc.,
62 Union St.,
#3, Westfield 01085. Dovydas
Cepulis, same. Installing cable
and providing service.
Pro Automotive Repair Inc.,
979 Southampton Road,
Westfield 01085. John A. DeNnardo, Jr., 628 Southampton Road, Westfield 01085. All aspects of automotive repair, towing, used car sales, inspections, etc., for heavy-duty diesel, car and fleet service.

WEST SPRINGFIELD

HAQ Corp.,
55C Van Deene
Ave., West Springfield 01089.
Jahoor Ul Haq, same. A retail
gas and convenience store.

Positive Pregnancy Solutions of Western Massachusetts
Inc., 116 Forest Ridge Road,
West Springfield 01103.
Barbara Shea, same. (Nonprofit) To assist women who desire information and services concerning pregnancy.

Bulkley, Richardson and Gelinas, LLP in Springfield announced the following:

Daniel J. Blake

• Daniel J. Blake has been named Counsel. He is a member of the Litigation/ Alternative Dispute Resolution (ADR) Department and
Employment Law Practice Group;

Gastón de los Reyes

• Gastón de los Reyes has been named an Associate. He is a member of the Litigation/ADR Department;

Jennifer K. Cannon

• Jennifer K. Cannon has been named an Associate. She is a member of the Litigation/ADR Department;

Daniel A. Leonardo

• Daniel A. Leonardo has been named an Associate. He is anew Associate in the Boston office and a member of the Litigation/ADR Department, and

Seth M. Wilson

• Seth M. Wilson has been named an
Associate. He is a member of the Intellectual Property Group.

•••••

Meyers Brothers Kalicka of Holyoke and Greenfield announced the following:

• Brenda D. Olesuk has joined the firm as the Firm Administrator in the Holyoke office, and
• Daniel J. Eger has joined the firm as an Associate in the Holyoke office.

•••••

Western New England College Professor of Management Dr. William P. Ferris has been appointed Associate Editor of the Journal of Management Education. Ferris is an expert in team-building, leadership, and management education. It is his second stint as associate editor, having previously served from 1999-2002. In addition to this appointment, Ferris was recently named the Editorial Board Member of the Year for the Academy of Management and Learning, the educational journal of the National Academy of Management.

Edward J. Terault, President of Reil
Cleaning Services in Greenfield, recently attended the SSA/Interclean Conference and Trade Show in Las Vegas, which showcased new processes and cost-cutting methods in the commercial cleaning industry.

•••••

Tereza Perez-Morale recently joined the Pioneer Valley Planning Commission in West Springfield as a Secretary.

•••••

Junior Achievement of Western Mass., based in Springfield, announced that the following individuals have been elected to the Board of Directors:

• Sara McFadden, Assurance Manager for ricewaterhouseCoopers LLP;

• Lynn Starr, Vice President, Systems & Operations for Easthampton Savings Bank;

• Ravi Kulkarni, Business and
Professional Coach, and

• Russ Davies, Director, Manufacturing Logistics & SAP Operations for Hasbro Games.

•••••

PeoplesBank in Holyoke announced the following:

• Mary J. Meehan has been named Vice President for Commercial Loans;

• Joyce A. O’Connor has been named Assistant Vice President and Manager of the new Westfield office, opening in early 2006;

• Heidi Nowak Leonard has been named Mortgage Consultant for the new Westfield office;

• Halena Ramos has been named a
Mortgage Consultant for the Chicopee, Ludlow, Monson, Palmer, and Springfield areas, and
• Brady D. Chianciola has been named Branch Officer for the Chicopee office.

•••••

Hampden Bank announced the following:

• Donna J. Kennedy has been hired as a Customer Service Representative and Sales Manager in the Agawam office, and • Sheryl Shinn has been named Vice
President of Information Technology.

•••••

Two MassMutual Financial Group executives were recently elected to posts in industry associations:

• Matthew M. Abraham, National
Managing Director of Public Markets for MassMutual’s retirement services division, has been elected President of the 2005- 2006 Industry Committee of the National Assoc. of Government Defined Contribution Administrators. He will also serve on the association’s seven-member executive board, and

• E. Thomas Johnson Jr., Senior Vice President of Enterprise Marketing for Massachusetts Mutual Life Insurance Co., has been elected to the Board of Directors of the Profit Sharing/401(k) Council of America. He will serve a three-year term.

And Now, A Little Optimism

As 2005 winds to a close, economic analysts are focusing their attention on the year ahead and what it might bring. For the most part, the forecasters arent very hopeful.

Indeed, they look at the recent surge in energy prices, the prospects for higher interest rates, and continued losses of population and innovative talent in the Bay State, and generally conclude that 06 will be a time of slow and unspectacular growth.

Thats one way of looking at things. From a regional perspective, and without discounting what the scholarly analysts have to say, BusinessWest looks more positively toward the year ahead. In some ways, we have to; considering what the past few years have brought Springfield and the surrounding region, things can only get better.

But with a less cynical eye, we can say that the City of Homes, and, to a lesser extent, the entire region, are turning a page. If nothing else, many people feel comfortable saying that the worst is now behind us.

Granted, there is a long way to go, and if Judge Constance Sweeneys ruling that the Albano administration improperly froze teachers wages is upheld, then the city will be faced with an even deeper budget crisis. But there are some signs of progress:

The MassMutual Center is open for business:Granted, we have yet to see any of the big conventions and shows weve been promised, but the center is big, bold, and it has people talking. Better still, it is providing people with new and different reasons to come downtown from chamber trade shows to the Bright Nights Ball and this can only help Springfield in the long run.

Some Movement on the Riverfront:After years of talk, we have a formal, approved plan for development of the old Basketball Hall of Fame. Its a $9 million sports and fitness complex that the developers and the Springfield Riverfront Development Commission (SRDC) believe will effectively complement the new Hall, its tenants, and neighbors. If theyre right (work is expected to be completed in 12-15 months) then the city will gain some valuable momentum in its efforts to make the riverfront a true destination spot. Thats good, because another development team is looking at a hotel proposal for Riverfront Park, several options for the York Street Jail, and some other parcels along West Columbus Avenue.

Progress on the Smith& Wesson Property:This is another project that has been years in the making, and the fact that the city is close (or at least much closer) to landing tenants for the property, is a positive sign. Springfield needs many things, but at the top of the list are tax revenues and jobs. The property at Smith & Wesson holds promise for both.

Strength in the Suburbs:As weve noted many times before, other cities and towns in the region are thriving.

Northampton is enjoying explosive growth, and more lies ahead due in part to the longawaited redevelopment of the former Northampton State Hospital site. Westfield is on the verge of adding hundreds of new jobs in the distribution sector, and has an industrial park primed for development. In Chicopee, a city rocked by the indictment of its sitting mayor on extortion charges seems poised to put that sad episode behind and move forward.

Eds and Meds:Two pillars of the regions economy education and health care are positioned for continued growth. As the Baby Boom generation nears retirement, the already steady health care sector will continue to add jobs across a wide spectrum. Meanwhile, the areas colleges and universities are continuously adding new programs and services to bolster the economy. From the Virtual Hospital at STCC to the soon-to-open Kittredge Business Center at Holyoke Community College, the schools are developing new ways to spur entrepreneurship and train people for the jobs of tomorrow.

This optimism must be tempered somewhat by the recent ruling on the Springfield teachers contract, which might ultimately wind up costing the city $30 million, undoing all of the budget progress made by the Control Board. Meanwhile, the ongoing epidemic of crime in Springfield must be curbed if the city is to move forward.

If Springfield can manage to somehow navigate that whitewater and that is a big if, then there is reason to believe that 2006 holds the promise of better times.

The Elephant in the Room

Massachusetts stands at a crucial point in the push for health care reform. Gov. Romney and the state Legislature are in agreement about passing health care legislation to extend care to more of the 750,000 uninsured in Massachusetts. A driving force for reform is retaining current federal funding for Medicaid; Massachusetts stands to lose significant federal funding if legislation to cover more of the uninsured is not in place by June 2006.

As a result, the government is tinkering with the health care insurance system to try to cover more patients who do not have insurance.

Romney, Senate President Travaglini, and House Speaker DiMasi have each proposed their ideas for this reform, and the Legislature will hammer out the details.

Meanwhile, everyone is ignoring the elephant in the room. That would be the private health insurance industry, which siphons off a huge percentage of the health care budget. In fact, the United States would save $200 billion per year if this elephant were eliminated.

Private health insurance through employer-based plans, which all three of these Massachusetts legislative proposals would perpetuate, funds only 19% of the health care in the United States. The other 81% comes from taxpayer-funded public programs and private spending. Yet our legislators choose to support and take care of the private insurance companies, rather than the citizens of the Commonwealth.

For example, the nations largest private health insurer, Wellpoint, more than doubled its earnings in the third quarter of this year. Our state and national policies have been designed, and are continuing to be fashioned right now in Massachusetts, to protect and nurture the private health insurance industry, even though more and more burdens are being placed on employers, towns, patients, doctors, and hospitals.

Employment-based health coverage segregates a large sector of primarily healthy working individuals, and places them in a low-cost and low-risk pool for the insurance companies, while the state and federal governments pick up the costs of those with significant health care needs.

And what do we get for all the money that is funneled into the private health insurance industry? We get high administrative costs and exorbitant insurance company profits, while the price of insurance keeps going up and up, and patients are required to share more of the costs of their health care. (For example, the CEO of Blue Cross and Blue Shield of Massachusetts earned more than $3 million in salary and benefits in 2002).

Why dont we extend government insurance coverage to everyone, and eliminate the middlemen? Why should administrative expenses consume 30% of the health care dollar, when a government program like Medicare takes only 3%?

Single-payer health care is the name for government-funded and administered health insurance; instead of many insurance companies, the government is the single payer. The legislation for single-payer health care in our state, The Massachusetts Health Care Trust, Senate Bill 755 (S.755), would cover everyone in the Commonwealth. But S.755 is not even on the negotiating table in this go-around for health care reform in the Legislature.

This affordable and comprehensive bill is the only one that meets the five criteria of the Institute of Medicine for coverage that is (1) universal (covers everyone), (2) continuous (not tied to a job), (3) affordable for individuals and families, (4) affordable for society, and (5) equitable and patient-centered (choice of doctors and hospitals). Yet single-payer legislation is being ignored by Romney and the state Legislature.

The insurance company elephant looms large; many politicians are ignoring it. Towns can do something about their out-ofcontrol costs, and citizens can create a grassroots movement to influence their politicians to legislate real health care reform. Suzanne L. King is a practicing physician and health care reform activist based in Lenox.

Soaring Energy Costs Fuel Speculation in Manufacturing

Chris Geehern says that even minor surges in fuel and electricity costs are cause for concern among the regions manufacturers.

So when the talk about the upcoming winter includes speculation about 30% or 40% increases in electricity costs and the possibility if not the likelihood of rolling blackouts, then those in this sector have good reason to be alarmed.

Manufacturers are large consumers of electricity, said Geehern, vice president of the Associated Industries of Mass.

(A.I.M.) So as we head into what could be a long, cold winter, there is a lot of concern in that sector.

How that concern will manifest itself remains to be seen, said Geehern, adding that much depends on just how severe the winter is and what transpires with other related issues, especially the broad subject of health care reform and proposed legislation with mandates requiring employers to assume more of the cost of that care.

The confluence of these issues will determine if and to what extent the region can build on some modest growth in manufacturing employment recorded over the past year, said Geehern.

Between October 2004 and October 05, the number of manufacturing jobs in the Greater Springfield area climbed from 39,600 to 40,200, he explained, adding that the 05 figure probably does not reflect layoffs at Springfields Danaher Tool plant, Holyokes Ampad facility, or other recent closings.

Geehern speculated that much of the 1.5% growth recorded since October of 04 came in the durable goods realm, specifically aerospace-related products and medical device manufacturing. This compares to relatively flat numbers the previous few years, and declines for much of the past decade.

That 1.5% increase may not sound like much, but its a pretty good number, especially when you look at the rest of the state, said Geehern, noting that, over the same period, manufacturing employment in the Commonwealth fell from 313,400 to 312,500, a .2% drop.

Given the projected increases in electricity and fuel prices and other factors that may increase the cost of doing business, the region is unlikely to see 1.5% job growth between now and next October, Geehern said, adding that while smaller increases are likely, overall job loss is a distinct possibility.

The worst-case scenario, he said, is that plant owners, especially those with facilities in other regions of the country or overseas will be prompted by those increasing costs to move operations out of the Pioneer Valley.

Bruce Stebbins, director of the regional office of the National Assoc. of Manufacturers (NAM), agreed that energy prices will likely be the most critical challenge for manufacturers in the year ahead. The reason is that the soaring costs touch producers in many ways from heating and lighting plants to production processes (most of which involve petroleum- based products of some kind) to shipping expenses.

And although theres a little more flexibility on pricing than there has been, its very difficult for most manufacturers to pass on those additional costs to consumers, he said.

Nancy Creed, a spokesperson for Springfield-based Western Mass. Electric Co., said new, much higher rates for electricity will go into effect Jan. 1. Increases, which result largely from soaring natural gas prices in the wake of Hurricane Katrina, will vary with the size of the customer, she told BusinessWest. Large users, many of them manufacturers, will see increases of about 50% over current rates, while smaller businesses will see costs rise about 28%. The rates are higher for the larger users because there are fewer of them and their demands are greater, she explained.

To date, there have been few calls to the utility concerning the increases and how to cope with them, said Creed, who expects that to change with the arrival of the first bills reflecting the new rates. WMECO is being proactive, she added, noting that letters have been sent to customers explaining the increases and outlining conservation programs.

Conservation is really their best tool, said Creed, referring to area business owners.We cant control the marketplace, butwe can help people control their consumption.

While doing battle with soaring energy costs, many manufacturers are facing another challenge, said Stebbins finding enough help.

Indeed, even at a time when some plants are closing or scaling back, many producers are struggling to find qualified workers, he explained, noting the problem is national, not regional in scope.

It is outlined in a study commissioned by NAM that identified what the agency is calling a workforce skills gap. More than 800 manufacturers were surveyed nationwide, said Stebbins, and roughly 75% of them said they have or had plans to hire, but cant find the help.

Theories abound, he said, but the probable causes for the shortage include the retirement of many long-time manufacturing sector workers and a subsequent shortage of replacements, as well as a general shift in opinion about the sector following substantial job losses in the 80s and 90s.

To inform young people about the opportunities that exist and eventually change some attitudes in the process NAM launched a program called Dream It, Do It. The initiative educates young audiences about jobs in the field and the educational requirements needed to perform them.

Locally, there is recognition of the fact that there are not enough qualified people out there, said Stebbins, noting that there is interest among area manufacturers inDream It, Do It and other programsdesigned to put more people in thepipeline.

Employment Picture Continues to Churn

Uncategorized

Volatile. Thats the word David Gadaire kept coming back to as he talked about the regional employment scene.

He has a front-row seat as director of Holyoke-based CareerPoint, one of the regions two one-stop career centers that recently marked 10 years in business. In 2005, CareerPoint set new highs for people it placed in jobs, said Gadaire, adding quickly that this good news is balanced by the fact that the agency also set a new high-water mark for requests for assistance from those looking for work.

What that tells him is that there is quite a bit of instability in the local market, or churning, as he put it.

This is really nothing new, and its all part of what he refers to as the free agent nature of todays jobs scene. There is less permanence, on the part of both employers and employees, he said, adding that he tells clients the agency places that, in all likelihood, theyre not going to a job theyll retire to.

Meanwhile, many of the jobs that the region is losing are being replaced by service- oriented positions that are not as highpaying as some of the manufacturing jobs that have been lost.

Theres not a lot of permanence in the job market, he explained. Were busy in all areas helping companies fill spots and also assisting people with finding employment.

Bill Ward, director of the Regional Employment Board of Hampden County, said the job market in the region has mirrored most other elements within the economy; in other words, there was slow, steady growth, which represents a slight improvement over the previous few years.

The job market is certainly not robust, he explained. But its holding its on own were slowly starting to move forward.

Mary Ellen Scott, president of United Personnel in Springfield, used similar adjectives to describe her companys year and the outlook.

Our business was ahead of last year by about 5%; thats not huge, but it is growth, she said. Its always good when staffing companies see growth of any kind, because it means there is movement in the market.

That movement, from what she has observed, has been in several areas, but especially light manufacturing.

On the supply side of the labor market, the regions unemployment rate is around 5%, near the state figure. The number is higher in the urban areas, topped by Springfields rate of about 7.2%. On the demand side, there has been some hiring, but mostly in small denominations, he explained.

The ongoing challenge for the region, said Ward, is to properly match people to positions that come onto the market; in many cases, its a mismatch, which explains the higher employment rate at a time when many employers are struggling to find good help.

This is especially true in machining, where many tool and die shops are looking to add staff, but often cannot because properly skilled individuals are in demand and not in adequate supply.

Right now, those precision machining companies are pirating from one another, said Ward. Thats because there are few of those people out there, and you cant grow them overnight.

Looking back on 2005, Ward said the region lost several hundred jobs to plant closings and consolidation initiatives, including just over 300 to the closing of the Danaher Tool plant in Springfields North End. Other losses came at Holyokes Ampad plant, which has been downsizing for the past few years, and with the closing of a few manufacturing facilities in the Quaboag area. The closing of Ludlow Textiles Co. has been announced, but the plant still remains open, and no timetable has been established, he said.

Those losses have been mostly absorbed, he said, noting that Danaher employees were able to tap into federal re-training programs. Many Danaher employees were hired by other area manufacturers looking for qualified machinists, said Ward, while others, with fewer specialty skills have been retrained for other types of manufacturing or have opted to leave that sector due to its volatility.

Meanwhile, the region did gain some jobs, said Ward, with the health care and higher education sectors leading the way, and some gains in specialty manufacturing. Overall, the growth has been modest, but across the board, and more is expected for the year ahead.

I think were though the worst of it, said Ward, referring to the times when the losses were outnumbering the gains.

Slowly but surely, the job market is moving forward.

Death Without the Estate Tax?

Although Congress has often discussed the elimination of an estate tax, it has yet to do so.

When George W. Bush was first elected president, part of his campaign was based on his promise to eliminate the estate tax.

At the time of this writing, the law currently stands that the exemption through 2008 will be $2 million per person for federal estate taxes. In 2009, the exemption becomes $3.5 million. In 2010, an unlimited deduction is available for any United States citizen, so anyone who dies then will pay no estate tax.

In fact, many practitioners have suggested that in 2010, wealthy clients who are not physically well should consider chartering a plane to the Netherlands or some similar country that permits assisted suicide.

Although this may be a harsh statement, this would completely eliminate federal estate tax as the law now stands. The governments plan is to return the limitation back to the amount of $1 million in 2011.

With the current economic and budget crisis in the United States and with the need for additional funds to be raised, it is unlikely that a full, unlimited estate deduction will be available for every individual.

Many proposals have surfaced providing that each decedent will have an exemption credit of between $2 million to $5 million, and this would certainly eliminate estate tax for most individuals. Therefore, with proper planning, a married couple would have the benefit of up to $10 million in assets that could pass to family members or friends without any estate tax.

With estate taxes making up less than 1% of the income received by the federal government from all sources, it is hard to imagine why the government would not consider eliminating this tax. It has been suggested that there be should be a tax on the very wealthy. Certainly, they can either afford to pay the taxes or leave a significant portion of their wealth to charity, which eliminates estate taxes.

Many charities are concerned that without an estate tax the charitable intention will be lessened, and wealthy individuals will plan fewer gifts without the incentive to reduce their tax liabilities. However, in light of Hurricane Katrina and other recent natural disasters, it appears that many companies and individuals may make significant gifts without regard to the value of a tax deduction, even though recent legislation has allowed increased gifts with fewer limitations for deductibility on income tax returns.

There are two other reasons for maintaining at least some form of estate tax.

The Internal Revenue Service needs to left many of its employees in the estate and gift tax area. There are thousands of individuals who process estate tax returns, audit them, and process payments. They could possibly lose their jobs, and may not be able to reclassify their positions within the government if the estate tax was totally eliminated.

Another group lobbying for a persistent estate tax includes insurance companies. Life insurance is often sold in order to replenish wealth as a result of payment of estate taxes. In order to alleviate the requirement to sell property, force a closing and sale of businesses, or liquidate other stocks or personal assets, life insurance is often used as the means to obtain fast cash for payment of estate taxes, which are due nine months from date of death.

Another frequently sold option is the socalled joint and survivorship policy, or second- to-die policy, which is marketed as one policy on two lives, normally a husband and wife. Since all estate taxes may be deferred until the second death, the second-to-die policy is available as a resource that provides for liquidity upon the second death, when the significant tax liability is due.

If there were no estate taxes, there would be less of a need for life insurance in the role of estate tax liability. However, there may still be a need for life insurance if a person has a spouse and children, and also wishes to ensure that funds are available to pay mortgages, provide liquidity for college education or otherwise supplement the surviving spouse or children in order to meet their future needs.

The government has also suggested that in the event that estate taxes are eliminated, there may be an adjustment to the basis of assets that are passed on to heirs upon death. This will result in significant income tax issues for heirs to review in lieu of estate tax issues.

Under the current rule, in most situations, assets passing to children receive a date-of-death basis if as the asset is includable in the estate for estate tax purposes, even if there is no estate tax due. Under suggested rules, there may be a threshold of between $1 million and $1.5 million for basis adjustment, but assets in excess of this amount will be taxable at the basis of the person who died.

Since assets included in the exempted amount are flexible, this could cause significant problems within families who may argue about one siblings inheritance being included as a step up asset and another siblings inheritance being taxed at the lower basis.

Therefore, it will be essential to do prior estate planning around the allocation of the basis adjustment and make decisions about which assets will be sold and which assets will be maintained upon death.

Hyman G. Darling, Esq. is chairman of Bacon & Wilsons Estate Planning and Elder Law Department. His expertise includes all areas of estate planning, probate and elder law; (413) 781-0560;harling@baconwilson. com.

Food for Thought

PeoplesBank Finds A Healthy Alternative to Traditional promotions

Sue Wilson says the bank was looking to go beyond toasters and most of those other traditional, if not exactly original, enticements for people to open new accounts.

Thats how Holyoke-based PeoplesBank began a process that found up partnering with Whole Foods Market and its Hadley store, said Wilson, vice president of Marketing for the bank. Its a promotion that is providing some effective exposure for both companies, while giving new customers something they can put in the toaster.

Last month, PeoplesBank launched a new customer-incentive program that offers a free $10 Whole Foods Market gift card for opening a checking account. In addition, the bank started holding weekly drawings for $500 gift cards at the market, a promotion open to existing bank customers and, essentially, anyone who visits one of its branches and wants to participate.

Thus, the promotion is similar to others staged by the bank in the past giveaways have included stadium seats, coolers, mini food choppers, and fleece blankets but different in that in involves free food(and, in the case of the larger gift card, lotsof it) at a time of year when people havethat topic on their minds.

There are still a few weeks left in the promotion (it will end when the year does), but there are indications that it has been more successful than some previous promotional efforts in generating new accounts, said Wilson.

It seems to be running ahead of many of our other promotions, she said, declining to give specific numbers. I think that results from the product food and the time of year.

Ann Walsh-Sullivan, marketing team leader for the Hadley Whole Foods Market facility, said that while the store cannot accurately gauge the full impact of the promotion the banks gift cards are not distinguishablefrom others the store sells she believes it has generated more trafficand exposure for the store.

I think its been an effective partnership that has made us more visible, she said, referring to the slew of newspaper and radio ads and a billboard in Hadley that have announced the promotion. And I think it has introduced us to some new customers.

Creating new customers was certainly the goal for PeoplesBank, said Wilson, noting that both the $10 gift cards and the larger, weekly drawings have been effective in that mission.

The former, like other give-aways for new accounts, is designed to provide some needed incentive to those thinking about switching banks or opening additional accounts. The free-gift tactic, used for decades with items ranging from oven mitts to dashboard mugs to Ray Borque bobble-head dolls, has stood the test of time, said Wilson, adding that PeoplesBank was looking for a new twist.

It found one in Whole Foods Market, the Texas-based chain that that now boasts more than 180 stores in North America and the U.K, and is now the worlds leading retailer of natural and organic foods.

The Hadley market on Route 9 is only a few hundred feet from one PeoplesBank branch and a few blocks from another.

The gift-card promotions was seen as a way to not only support a neighbor, said Wilson, but also to build visibility and a broader customer base in a region, Hampshire County, where it has launched a major expansion effort over the past several years.

In those branches, and at all of PeoplesBanks facilities, the focus is on customer service, and this is where the larger gift-card give-away comes in, said Wilson. Because no purchase is necessary, it is drawing people into the branch offices, she said, adding that this is the first step in the process of converting them into new customers.

This gives people a reason to come in and meet our people, she explained.When they do that, they can get a feel forthe kind of service we deliver.

Not an Impossible Dream

Single? You Can Still Own A Home!

Ive had many opportunities to go to Hawaii in my life, but I always found a way to put it off because I was saving it for my honeymoon.

Twenty years later, I am still single and have yet to go to Hawaii. The lesson here is that you dont have to wait for Mr. or Mrs. Right to come along in order to enjoy life, own a home, invest in your future. or even start a family.

Whether you are single by chance or by choice, owning a home does not have to be an impossible dream. Lets look at some of the obstacles that you may think stand in your way.

I need sufficient savings for a down payment and closing costs.

Today there are many programs available that require little or no money down. It is also very common today for a seller to contribute toward the closing costs. Loans close every day where borrowers do not have to bring a cent to the closing.

My credit may not be good enough or I dont have any credit.

You might be surprised to learn of the programs available that cater to borrowers with credit issues. If you have no credit, there are programs available that will accept alternate sources of credit, such as rent payments, utilities and insurance payments.

If you have had some difficulty in the past, there are programs that will accept lower credit scores. Perhaps, if you need to repair a few items before purchasing, the lender can recommend a plan to get you back on track.

Living in a single household may not give me enough income to qualify for a mortgage loan.

Today, with the exorbitant costs of rent, you may be able to find a home where the mortgage payment is comparable to renting. Many lenders have programs available that will allow you to use alternate sources of income, (cash income, boarder income, etc.) In the past, the debt-to-income ratio was very conservative, but today it has been stretched to allow more borrowers to purchase a home.

Homes are a money pit ……what if I cannot afford the expenses that go along with owning a home?

Yes, you will have additional expenses that will include the maintenance and repair of your property. If the furnace goes, the roof needs repair or the faucet needs to be fixed, it is your responsibility. However, there are many other positive reasons for owning a home.

Owning a home is one of the best ways to create future wealth. Each time you make a mortgage payment a portion of that payment goes toward your principal balance, which in time creates equity. That equity can eventually provide you with the ability to purchase a larger home, assist your children with their educational expenses or provide for future investments.

It could also provide for you in your retirement years.

Owning a home has tax benefits. The mortgage interest you pay each month can be deducted from your taxes up to certain limits of debt. Every persons situation is different and it is always a good idea to check with your tax accountant.

Owning a home of your own allows you the freedom to live your desired lifestyle. If you want pets you can have them. If you want to paint your walls with polka dots, you dont have to ask anyone. Perhaps you might like to plant a vegetable garden, put in a swimming pool or play your guitar into the night …. the choice is yours. Of course, normal limits should be observed. In most of these scenarios you wont run into theits not in the lease, like you would if youwere renting your house or apartment.

If you have children, both national and regional studies have shown that children of homeowners are more likely to stay in school through high school, score higher on math and reading achievement tests and are more likely to graduate from college.

Besides, there is nothing like having your own backyard to play in.

There are fears associated with home ownership and those fears may be increased if you are in a single household.

However, the benefits are substantial. Paying rent will not provide you with future equity as it will your landlord. If you wait until you find someone to share in the expense and the responsibilities, you may prolong the ability to create equity, provide for your retirement and live more freely. It may be time for you to sit down with a mortgage professional to review your financial situation and explore the many options available.

Jeannie Boudreau has 23 years experience in residential lending and is branch manager of National City Mortgage in West Springfield; (413) 788 9924.

Peaking Interest

The Berkshire Region Builds on its Economic Strength – Tourism

Berkshire County has historically recorded the best tourism statistics in Western Mass., and recent years have been no exception. To capitalize on that strength for the greater good of the region, the Berkshires are taking tourism efforts a step further, maintaining a knack for welcoming affluent, urban visitors, but paying more attention to young up-and-comers, families, and perhaps most importantly, the people in the neighborhood.

Bill Wilson, president and CEO of the Berkshire County Tourism and Visitors Bureau, says theres something in the air in the region that sparks creativity, peace, and tranquility.

Things move a little slower here, he said. Except reservations. Those are made at breakneck speed.

In terms of visitation, Berkshire County has recorded its best numbers this year since 2001 and several businesses and attractions across the region are also reporting positive year-end numbers. Tanglewood, for instance, the concert venue in Lenox that Wilson has dubbed the granddaddy of them all, welcomed about 400,000 visitors this past season and projects another strong season next year.

The Williamsville Inn in West Stockbridge, voted Best of the Berkshires by Boston Magazine after only three years under the current ownership, logged its best season in terms of revenue in its entire 54- year run.

Even one of the regions more unassuming attractions, Pittsfields Berkshire Museum, was pleased to announce that its recent reptile exhibit welcomed a record number of visitors to its halls about 40,000. Its current fairy-tale inspired Christmas tree exhibit is on its way to similar success.

As Wilson explained, tourism has always been strong in the Berkshires. But its showing some considerable momentum of late, and thats enabling the region to take a hard look at its marketing and branding initiatives, and to add some new numbers to its tourism repertoire.

Tourism is increasingly important to the Berkshire economy, said Wilson, a 20- year veteran to his post. Our economic development council has recently identified it as one the fastest areas of growth for the region; last year we logged $263 million spent by visitors, and thats not counting international visitors or day-trippers. If we factor everything in, I think we are looking at a figure of around a half-billion.

And while many tourism-centered regions took a hit after 9/11, the blow to the Berkshires was less severe than most, he added. That was due in part to consistently strong drive-in business, which balanced a decline in long-distance travel. A regionwide branding initiative that began in 1997 and took a two-pronged approach to luring guests from urban areas also deserved some credit.

Using the tag line nature sets the stage and culture steals the show, the Berkshire Tourism Bureau became the first in the state to successfully brand an entire region and note the effect thereof.

Theres also that peaceful vibe the Berkshires possesses, too, that Wilson said cant go unmentioned.

We had what people were looking for, he said of the tourism climate shortly after 9/11. We felt some effects of the attacks, but not as much as many, and the market held steady for us. Now, were coming back strong.

Tour of Duty

Wilson told BusinessWest that roughly one-fifth (12,000) of the Berkshire regions 60,000-person workforce is employed by businesses that are either directly related to tourism hotels, inns, attractions, etc. or indirectly related, such as shops and restaurants that would not survive without the heavy traffic the summer months and fall foliage weeks bring, or that brought by the winter skiing crowd. Whats more, those visitors come ready to spend.

Our typical visitors come from household with incomes of $100,000 or more, are typically urban, and affluent, said Wilson, adding that Berkshire County has long served as a weekend get-away for the wellto- do who hail from New York, Boston and its North Shore, and New Jersey, as well a vacation spot for the rich and/or famous. He continued that the trend is showing no signs of slowing.

But that doesnt mean he and others involved in the tourism industry and in Berkshire County, thats practically everyone plan to rest on their laurels and enjoythe brisk business. Rather, Wilson said theregion is making a concerted effort to takeadvantage of existing strengths by usingthem as a platform to expand into new territories,targeting new groups of potentialvisitors, promoting up-and-coming areasand attractions in the Berkshires, andcatering to the growing number of yearroundresidents, as well.

Tourism is one of our top industries here in the Berkshires, but were excited because we havent even reached our potential, said Wilson. Now, were trying to expand our market to appeal to new audiences were reaching out to younger people and beefing up our marketing of recreation and outdoor adventure options.

Were also targeting families, he noted. We want to create a group of kids that will grow up in the Berkshires.

That new tactic has been put in place to further diversify the types of visitors to the area, Wilson said, but he admitted that serving as a draw to affluent, out-of-state, and often international populations is a luxury the Berkshires as a whole should never ignore.

We want to give those kids great experiences in the Berkshires, he said, but when they grow up and have their own turbo-charged Saabs, we also want them to come back.

A Family Affair

Families and younger visitors are constituencies that several businesses and attractions are poised to welcome, especially in areas of the Berkshires that are breaking new ground in the cultural and artistic arena.

Kandy Wendt, co-owner of the Williamsville Inn with her husband, executive chef Erhard Wendt, has watched her business grow and flourish since taking the helm at the inn three years ago, thanks to the incorporation of several new ventures. Weve found two niches, she said.

One is our cooking school, which no one else in the area offers. The other is our family- friendly concept. As many as 80% of the other inns in the area dont accept guests with babies or young children, but we have found ways to welcome those guests that work very well.

Wendt added that catering to families also helps Berkshire businesses strengthen their year-round presence among the permanent population, not just boost their numbers during peak tourism seasons. It has created a word-of-mouth effect that the inn is one of few that will welcome families of all sizes, and that in turn has spread the word about the Williamsville Inn culinary school which offers classes to individuals at all levels of expertise in the kitchen, under the direction of Erhard Wendt. And that, further, has called greater attention to the inns German-inspired restaurant, which is open year-round by reservation only.

Now, the inn is introducing classes in Nia, a hybrid of yoga and dance, to continue that trend of constantly refreshing the business.

The whole concept has really worked for us, said Wendt. Our diversity makes people who live here feel welcome, and attracts new visitors too.

That, she said, is important because those busy seasons are consistently strong its the off-seasons that need the greatest attention.

In the summer, everyone is busy, she said. If youre not, something is really, really wrong. But the banks still need their payments throughout the year, not just during the busiest months. We need the locals to keep going through the winter, and stay where we want to be in terms of business.

And business is very good, she noted.Before we had call-forwarding to our cell phones, if we stepped out for two hours we missed 13 calls.

The Accidental Tourist

Sherrill Ingalls, director of marketing and public relations for the Berkshire Museum, agreed that attracting families and continuing to regard the regions nontourist population as a valuable resource for tourism-related business is the key to sparking some new life into Berkshire Countys already robust tourism industry.

She said that currently, about 60% of the museums visitors are families, many of whom are year-round residents. Greater attention to bringing in more families during strong tourism months, she said, would undoubtedly have a positive impact on the museums bottom-line.

Were perfectly poised to take advantage of that, she said. The museum itself is very family-friendly, and lately were on a roll in terms of successful activities and exhibitions geared toward that market.

Regardless of the strength of the region, museums nationwide face a common set of challenges, ranging from finding new ways to bring people in to see permanent exhibits, defining which rotating exhibits will have the greatest impact, and most importantly, operating on increasingly lean budgets.

But Ingalls added that Berkshire Museum isnt the only attraction in Pittsfield that is on board with the tourism bureaus new initiatives. As a city often seen as the blue collar blip on Berkshire tourisms radar screen, new cultural endeavors including the formal creation of the Downtown Arts District by Mayor James Ruberto, are in keeping with the regions push to promote its many cultural assets to a wider audience.

Pittsfield is currently home to more than 50 working artist studios and several restaurants and shops, for example, as well as five of the Berkshires most prominent cultural attractions; in addition to the Berkshire Museum, there is the soon-to-be restored Colonial Theatre, the Berkshire Music School, the Berkshire Atheneaum, the Berkshire Opera Company, and the City of Pittsfields Lichtenstein Center for the Arts.

All are receiving a shot in the arm from both the citys renewed focus on the arts and the regions push to include Pittsfield in its new marketing campaigns.

We have a great amount of family-oriented activities here, and the new attention is really beneficial for us, said Ingalls.

Often, people visit and they do Williamstown, or they do South County. A lot of times, Pittsfield gets lost in their travels, but there is a lot happening now and that is slowly bringing people in.

Winning the Race

And even in a positive climate, thats something Wilson said he and his office have recognized as integral to maintaining that Berkshire pull keeping the draw fresh, while still cultivating its traditional attributes.

There is no other place like this in the world, he said. We have world-class venues in a country environment. We have quality and quantity, so naturally we want to open that experience up to as many people as possible.

Im confident that the influx of people to our area is only going to become even more substantial, he concluded.

Slowly, but surely. Jaclyn Stevenson can be reached at[email protected]

Scene Two

Barrington Stage Co. Takes a Lead Role in Pittsfield’s Emerging Arts Scene

Julianne Boyd, artistic director for the Barrington Stage Co., said the

Posted around the interior of the Berkshire Music Hall are dozens of 8 x 10, pale blue watch for signs.

Watch for……a new box office! Reads one in the lobby. Watch for …… a new lighting and sound system! Reads another in the balcony.

The hall, nestled on a side street in the center of Pittsfield, is currently undergoing renovations and is, for now, easy to miss. A simple blue and pink placard belies the size and scope of the theater inside, which houses an historic vaudeville stage, 11 rows of orchestra seating and seven in the balcony, formal dressing and green rooms in the basement, and loads of New England charm.

But its neither the unique architecture nor the buildings history that many in Berkshire County are keeping an eye on these days; its the halls new owner, the Barrington Stage Company (BSC), and the commitment the group has made to breathing new life into an old music hall, the craft of theater itself, and the City of Pittsfield as a whole.

BSC, a non-profit, up-and-coming theater group, may have yet to carve a niche in the Berkshires as deep as some other regional theater staples, like Shakespeare and Co. or the Berkshire Theatre Festival.

But the company has already burst out of the Berkshire seams by garnering national acclaim for locally staged productions as well as world premieres of shows such as The 25th Annual Putnam County Spelling Bee, now playing on Broadway and the winner of two Tony Awards.

Until this year, BSC grew incrementally over the past decade from its headquarters in Sheffield, an arts and culture-rich section in the Berkshires South County.

Although the company was established in that area, BSCs artistic director, Julianne Boyd, felt it was time to break new ground, both literally and figuratively. So BSC purchased the hall and an adjacent structure known as the Octagon House for $785,000 in July, marking the procurement of the companys first-ever permanent home. It was also a significant move away from the familiar and toward the unknown, where instead of capitalizing on an already strong arts and theater climate, BSC will be a front-runner in creating such a culture in Pittsfield.

Setting the Stage

The purchase and subsequent renovawww.tion of the Berkshire Music Hall, which began in November and has closed the facility to the public until a projected completion date of June 1, 2006, is one of several initiatives currently underway in Pittsfield as part of the Downtown Arts District project, established to help bring the citys cultural assets to the forefront of its economic picture.

Not all of the reasons Boyd first considered the Berkshire Music Hall as a potential new home for BSC were as lofty as jump-starting an entire communitys cultural vibe, though. She said one major deciding factor was the surprising intimacy she felt within the expansive building.

The actors dont have to yell their lines, she said, recalling the acoustics Barrington Stage players enjoyed during their first production Hair at the Berkshire Music Hall last summer. That intimacy, coupled with the space the building offers for preparation, rehearsals, management of the company, fundraising, and other satellite events associated with the group, is what sealed the deal for Boyd.

She said it offered a physical space in which to house the work that is central to BSCs mission: producing quality, compelling work, developing new plays and musicals, and finding fresh, new ways to introduce theater to new audiences.

When I founded Barrington Stage Theater, Boyd explained, noting she began with a partner but has since struck out on her own, I had been with the Berkshire Theatre Festival for two years, and had some great experiences. But I wanted to create a company that would produce topnotch work, and also include a strong educational arm.

That educational aspect has become one of Barrington Stages strongest features. It works with drama students of all ages and levels, including youths in the area through programs such as KidsAct!, a year-round dramatic training program, Youth Theatre, a musical theater performance opportunity, and through youth-at-risk initiatives such as the Playwright Mentoring Project, designed to provide positive interventions for children and teenagers, steeped in the theater experience.

The youth-at-risk program has taken place around Berkshire County, in Pittsfield, Lee, and Sheffield, Boyd said. Its a project that allows the kids to work with playwrights and essentially tell their stories, after first creating a safe and secure environment.

Boyd said the students create a play based on their lives, and Barrington Stage Co. will travel to schools, community groups, and social service organizations to perform the piece for audiences.

But the youth-at-risk program, though both effective and groundbreaking, is just one piece of the broad organizational plan the Barrington Stage Co. employs on a year-round basis.

In addition to producing its own, original plays, the company also stages traveling shows and more-well-known productions, like last summers Hair that inaugurated the BSCs new home.

And now, with the halls renovation underway, Barrington Stage has its sights set on introducing its unique mix of educational activities and performing arts to a larger audience. It will also rent the space to other performing arts groups, in order to contribute to what amounts to a cultural renaissance in Pittsfield.

We wanted to try to stay in area, and for a long time we could not find the theater that we wanted, Boyd said of the move from Sheffield to Pittsfield. We didnt want to build from the ground up, because that would have to become the focus for years. Then, we found this great space, and the community of Pittsfield has been totally supportive from the beginning. We really feel like were going to be at the forefront of this community as it moves toward greater cultural significance.

Culture Shift

Indeed, Pittsfield is in the building years of an arts and entertainment movement. Existing attractions, such as the Berkshire Museum and Berkshire Opera House, are benefiting from a county-wide push to attract younger visitors as well as families to the region (see story, page 41). And new additions like the Barrington Stage Co. are receiving special attention from legislators and residents alike as one of the more visible examples of a cultural shift in the city.

We are moving into what has been long considered a blue collar town, and the community is totally embracing us, Boyd said, returning to her original mission of opening a theater that would reach diverse audiences and benefit a wide range of people in the community, year-round. I wanted to found my own theater and do year-round theater in the Berkshires, not just during those busy summer months. In Pittsfield, we are going to be more able to capitalize on a more year-round community, and we can affect the lives of the people that live here year-round as well as the tourists.

Boyd added that the greater accessibility to other locales from Pittsfield, including Springfield, Albany, and the major hubs of Boston and New York City, are an added plus associated with the move.

I think that positioning ourselves here will prove better because it is more accessible than South County was for us, she said.

We love Sheffield, and well still serve South County through traveling shows and other programs, but we had to change our hub, and in the process, were hoping that Pittsfield becomes a destination as well.

Renovations at the Berkshire Music Hall, which will surrender its name to make way for a new, as-of-yet unannounced moniker upon completion (slated for Summer 2006, when BSC also plans to open its 12th season), are expansive and being made possible by a capital campaign already supported by several Berkshire County businesses and grant funding.

According to facilities manager Jeff Gardner, the Octagon House (named for its unique shape) will house the administrative offices now located in rented space in Sheffield, and he and Boyd hope to have them ready for occupancy as early as March.

The theater itself requires more involved attention, however, and work will continue into the summer months. A new HVAC system must be installed, in addition to a new ceiling, new seats, sound and lighting and sprinkler systems, and an enlarged, fully accessible lobby and box office.

Gardner, a Pittsfield native, said he has a greater understanding of the impact the project will have, beyond BSCs growth. He added that for Pittsfield, the scope of the project is not only heralding a new shift in the city, but serving as a snapshot of the overall needs of the community.

Pittsfield is a story in and of itself, he said. Its a city that has experienced both greatness and struggle, and now this cultural shift were seeing is a real opportunity for the community to redefine itself.

Curtain Call

He added that the support given the theater project from within the city will also determine its level of success.

Operating a theater isnt always a winning proposition, said Gardner. Now, were riding a wave, but its very possible that in the future well have some flat years. It makes all the difference knowing that the support of the community is there for us.

And while the marquee currently reads closed for renovations, passersby can be seen glancing up at the building, waiting and watching for a change. The next act should be an exciting one.

Jaclyn Stevenson can be reached at[email protected]

In Construction, A Firm Footing

All land is not created equal. And yet, people are quick to talk about price per acre or price per square foot of land as if direct comparison is valid. To be sure, identical Peter Wood calls it the end of the pent-up demand.

Thats how he described a series of building projects that made 2005 a record year for South Hadley-based Associated Builders, which he serves as director of marketing.

As Wood explained to BusinessWest, following 9/11 there was a prolonged period of indecision for many business owners.

Uncertain about which direction the economy would take, these individuals back-burnered many new-building and expansion projects. When the economic picture came more clearly into focus, many of those ventures started to move forward, he continued, adding that it took some time to get through the pile.

He figures that point came sometime late this year.

And with that pent-up demand gone, there are some questions about what lies ahead for the construction sector, which is traditionally a good barometer of the overall economy.

Wood told BusinessWest that Associated has several projects currently in progress and more on the docket for the start of the spring building season but most are smaller in size and scale than some of the companys recent assignments. There is enough volume, however, for him to project that 06 might eventually wind up as good as this year.

For many years, I was cautiously optimistic about the prospects for this sector, he said. I havent had to use the word cautious lately, and dont think I need it now.

Still, there are question marks. Tom Zabel, who recently acquired The OLeary Company in Southampton, which specializes in fabricated metal buildings, said there are several factors that could impact the construction sector in the year ahead, starting with interest rates.

They continue to rise, he explained, which could prompt some business owners to think twice about building or expanding or … the trend might prompt some to strike now, before the rates go much higher.

The bottom line is that money is still relatively cheap, he said, noting that while rates are rising they are still near record lows. I think youll see some move now out of concern that rates will only go higher down the road.

Joe Marois, president of Chicopeebased Marois Construction agreed, but said interest rates could be one of many factors to sow uncertainty among business owners, which often translates into delaying new-building, expansion, or renovation projects.

Most of the things were doing now are deferred maintenance projects and other things that need to be done, he explained. I dont see as many people looking at new building; if they dont have to spend the money right now, theyre waiting to see what happens with the economy.

I suppose thats what people do every year, he continued, But it just seems that people are being more cautious right now. Beyond this heightened level of caution, there are other immediate challenges for builders specifically emerging supply problems involving buildable land and qualified construction workers.

Indeed, both Wood and Marois said that over the past few years, and especially over the past several months, it has become increasingly difficult to find good help at nearly all levels from laborers to tradesman such as carpenters and drywallers.

Wood said he doesnt have a firm grip on the reasons for the shortage, although he suspects that many individuals who might have sought out construction work in the past are now looking elsewhere, even though the field provides ample opportunities with decent wages.

Im not really sure why its happening, I just know it is, and its happening across the industry, he told BusinessWest. Its puzzling in a way, because there are good jobs out there and fewer people to take them.

Marois speculated that many of the summer workers that area contractors have relied on college students on break are now finding summer jobs in other fields, including technology and health care.

This is something everyone is dealing with, he said. There are simply fewer good people out there.

As for the land supply, Wood said several of the areas municipal and private industrial parks are at or near capacity, and there have been few additions to the inventory.

Land is becoming an issue, he said, adding that the dwindling supply is one reason why. Associated is working on smaller projects this year. Business owners like to have options, and they dont have as many now as they once did.