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1350 Main St. Melds Art Gallery, Event Space into Unique Facility

By
Evan Plotkin in the 1350 Conference Center.
Commercial Real Estate Special Coverage

Art of the Matter

Evan Plotkin in the 1350 Conference Center.

Evan Plotkin in the 1350 Conference Center.

Evan Plotkin says he decided to call it the ‘Springfield Room.’

That’s because … most all of the paintings on the walls, courtesy of artist John Simpson and his students, depict well-known personalities who either live in the city or have strong connections to it.

It’s a diverse group that includes Herbie Flores, the long-time director of the New England Farm Workers’ Council, as well as philanthropist Lyman Wood, White Lion Brewery founder Ray Berry, and even Plotkin himself, who has become well-known for his work in recent years to being more people — and more vibrancy — to the city’s downtown.

The paintings, all of which are for sale, are just one of the selling points of this facility, part of what is now known as the 1350 Conference Center, one of Plotkin’s latest efforts to re-envision, and repurpose, the property at 1350 Main St., which he co-owns.

The center is located on the ninth floor, in space that had served as what Plotkin called “an informal art gallery and event space” that was used occasionally for fundraisers and other gatherings. It was not marketed or really open to the public, he said, adding that it has been given a facelift to bring another amenity to existing tenants, hopefully attract others, and bring new meeting space to downtown Springfield.

And Plotkin believes the timing is right for such an undertaking. After more than two years of COVID, he noted, gatherings of all sizes and types are becoming more prevalent as the region continues to move beyond the pandemic, even at a time when most meetings have at least some type of remote component.

“The artwork in here is spectacular, and combining an event space with a gallery made a whole lot of sense.”

“Most meetings are hybrid now,” he noted. “You have people who can attend the meeting live, and there’s an opportunity to bring in others via Zoom. With such formats, your meetings tend to be better-attended, but most groups are gathering in-person again.”

Plotkin acknowledged that there are several meeting spaces in the region, including others in downtown Springfield, but nothing quite like the one he has created.

Indeed, it is different because of the art, he said, but also the location, in the center of downtown, and the amenities, including state-of-the-art equipment and new furniture.

“The artwork in here is spectacular, and combining an event space with a gallery made a whole lot of sense,” he noted. “And the response I’m getting from social media and the tenants who have been up here has been very positive; people are excited about it.”

Meanwhile, the new conference center is not the only intriguing development at 1350 Main St.

Indeed, Plotkin said he has several new tenants coming in that will turn on the lights on floors that have been dark, or mostly dark, for several years.

art adorning the Springfield Room

Just some of the art adorning the Springfield Room at the 1350 Conference Center.

The long-vacant sixth floor is now home to lawyers and support staff with the Committee for Public Counsel Services. Meanwhile, the Department of Children and Families is poised to sign a lease to take the seventh and eighth floors and part of the 15th. In all, roughly 60,000 additional square feet will be under lease by the summer, he said, adding that these new additions should help bring more foot traffic to downtown businesses and help them make a full recovery from COVID.

For this issue and its focus on commercial real estate, BusinessWest talked with Plotkin about the new conference center and other developments, literally and figuratively, at 1350 Main St.

 

Drawing Interest

Plotkin told BusinessWest that he recently took a prospective tenant through the building for a detailed look-see. The last stop on the tour was the re-envisioned ninth floor.

“After going through, they said, ‘where do we sign?’” he recalled, adding that the business in question stages training programs on a regular basis and needs such a facility.

A desire to solicit such responses was one of the motivating factors for renovating the space, said Plotkin, adding that, overall, he believes there is room for additional meeting and event space in the region, especially something that falls into the category of ‘different.’

The art makes it so, he said, adding that the works currently on display are mostly from Simpson, a self-described painter, sculptor, muralist, and teacher, whose works can also be found throughout downtown Springfield, on museum and office-building walls and adorning the sides of buildings as well.

But new works from various artists will be rotated in and, hopefully, sold, said Plotkin, adding that the art gives the space a unique, always-changing look.

There are three rooms in the 1350 Conference Center, he said, listing a larger room ideal for presentations and meetings of up to 200 people, and two smaller rooms, including the Springfield Room, that are designed for smaller gatherings, training sessions, team meetings, and more.

“We’re still just moving the pieces around. We need to get some net gains in the downtown, and the region as a whole.”

The space can be used for a variety of different uses, including fundraising events, annual meetings, and even holiday parties, he went on, adding that he only recently opened the space to the public — the sign outside the entrance went up late last month — and has already had a number of inquiries.

“I’m ready now to get the word out to the public and offer it to organizations across the region as another option; I think it’s going to really take off,” he said, adding that the space will be free to tenants of the building, while there will a fee charged to for-profit businesses and a lower fee to nonprofits.

He expects interest to spread through word of mouth, and noted that the space is just one of several intriguing developments at 1350 Main St.

As noted earlier, three long-vacant floors — six, seven, and eight — will have new tenants. The Committee for Public Counsel Services, which includes the Public Defender division, Children and Family Law, and the Youth Advocacy division, will bring close to 100 people to the building. Meanwhile, the Department of Children and Families will bring an additional 200 people to that address.

As they do so, they will do more than activate some long-vacant space, said Plotkin, adding that these additions should help many downtown businesses that have been impacted by the pandemic and the accompanying trend toward remote and hybrid work schedules.

“We’re bringing 320 people downtown — that should make the restaurants happy,” he said, adding that history has shown the importance of the downtown office towers — especially when vacancy rates are low — to the surrounding business community.

With these new additions, 1350 will approach 70% occupancy, said Plotkin, adding that he is exploring all options for the remaining spaces, which include the 16th and 17th floors (the ‘penthouse’), which were occupied by Disability Management Services until last June, and several retail spaces on the ground floor, including the large space last occupied by Santander Bank.

As he goes about trying to fill those spaces, he reiterated his contention that what the city — and the region — need are positive momentum when it comes to absorption, and less movement by existing businesses from building to building.

“We’re still just moving the pieces around,” he said. “We need to get some net gains in the downtown, and the region as a whole.”

 

Imaginative Stroke

Talking in general terms about Springfield, the region, and its business community, Plotkin said there is an ongoing need to be creative and do more to bring people to Springfield and its downtown.

With the new 1350 Conference Center, he believes he’s doing both.

He considers this an exciting new addition to the landscape, event space that is a work of art. Time will tell if it generates the interest he expects it will, but this is certainly shaping up to be an intriguing brush stroke as he fills in the canvas that is 1350 Main.

 

Celebrating 150 Years

By
Holyoke’s canals gave the city water power — and an identity.
Community Spotlight Cover Story Features

The Paper City Looks Back — and Ahead

Holyoke City Hall

Go just about anywhere in the Paper City — City Hall offices, manufacturing facilities, the local utility, restaurants, some cannabis dispensaries, anywhere — and you will find pictures of what would be called ‘old Holyoke.’ And some images of the new Holyoke as well.

They’re everywhere. Pictures of the old but still-standing mills, the canals, Mount Tom, High Street in a different age, the Hadley Falls Dam, and especially City Hall, the iconic Gothic Revival structure built in 1871 that is, in many ways, the symbol of this historic city.

These pictures you see everywhere are visible evidence of the enormous pride people from this city, or now doing business in it, take in Holyoke.

You see this this pride in every community in Western Mass., from the small towns in Franklin County to the capital of the region, Springfield. But in Holyoke, it’s … well, different. And it just seems like there is more of it.

This much is made clear in the stories that follow in this special section commemorating the city’s 150th birthday. People from Holyoke take a special pride in being from their city, and for many reasons.

There is history — this is the country’s first planned industrial city. There is architecture. There are landmarks. There are institutions. There is tremendous diversity. There is the St. Patrick’s Day Parade and Road Race. Mostly, though, there are people — those who lived a century and more ago, and those who call it home today.

As the city turns 150, there is much to celebrate, and certainly not all of it is in the past, although the past is what many people like to focus on.

There was a time when Holyoke was a model industrial city producing some of the finest papers and textiles in the world. The mills producing these products created thousands of jobs, enormous wealth, and tremendous prosperity.

The city’s fortunes changed, obviously, as these mills closed or moved south or overseas starting just after World War II. For decades, the city was in decline, even as it remained a center of jobs and manufacturing.

Today, there is a sense of revitalization and vibrancy, with new leadership, especially Joshua Garcia, the city’s first Hispanic mayor, and an economy that is far more diverse and fueled by everything from a surging creative-arts sector to a cannabis industry that found in Holyoke a welcome mat, millions of square feet of old mill space perfect for cultivation and even dispensaries, and inexpensive, green energy.

Another factor powering this revitalization is entrepreneurship. Through the efforts of EforAll, the Greater Holyoke Chamber of Commerce, Holyoke Community College, and other agents of change, Holyoke residents, and especially those making up the minority majority, are creating new businesses, from restaurants to dance studios to fabric shops, that are changing the face of High Street — and the entire city.

These stories and many others are told in the pages that follow. Together, they tell of a city with momentum. A city with vision. A city with renewed optimism about what can be done when people work collaboratively. A city that has a lot to celebrate.

 

Holyoke. Wanna Make Something of It?

By Darby O’Brien

 

Unless you’re from Holyoke, you probably won’t get it.

We’re a little like Southie on the other side of the state. Hardscrabble Holyokers have grit and never quit. Holyoke is a city with soul. It’s a city of neighborhoods. Churchill, Elmwood, the Flats, the Highlands, Oakdale, and Springdale. As Liberty Bank President and Holyoker Dave Glidden says, “you can take the kid out of Holyoke, but you can’t take Holyoke out of the kid.”

Just look at the cast of characters that came out of this place. Start with the famous drummers. Hal Blaine, a Rock & Roll Hall of Famer, played with the legendary Wrecking Crew on 40 number-one hits, and Ronnie Hurst played in Steppenwolf. Holyokers Michael and John Shea wrote the Notre Dame fight song. We have Emmy-winning actress Ann Dowd. Alan Eisenstock was a writer and producer on shows like Mork and Mindy, Sanford and Son, and Family Matters. My nephew, Lenny Jacobson, is another one you’ve seen on the tube, from big-time TV spots to shows like Nurse Jackie, and he just won the 2023 JFK Award.

We’ve also got Neil Sheehan, the New York Times writer who released the Pentagon Papers and won a Pulitzer Prize for his book A Bright Shining Lie, considered to be one of the best books about the Vietnam War. Mitch Epstein is a world-renowned photographer. Frank Leja, who lived down the street from me as a kid, signed as a ‘bonus baby’ with the New York Yankees at 17. To this day, he’s the youngest player ever to appear in the pinstripes. The list goes on. Maybe it’s in the water. We’ve got four reservoirs. They’re all closed for fishing now, but we sneak in and cast a line anyway.

Another thing unique to Holyoke is the game of Pickie. We invented the game in the streets and alleys downtown. Just saw off your mother’s broom for a bat, and grab some Pee Gee balls, and you’re set. It’s always been a sports town. Betsy Frey carries on the family business at Holyoke Sporting Goods, probably one of the last independent sporting-goods stores left. Part of what keeps it going is the boatload of Holyoke merchandise she sells in the store, especially around parade time. You’ve heard about Holyoke’s St. Patrick’s Day parade, right? One of the biggest in the country.

The late “Made in Holyoke” rapper Justin Chavez said, “it’s a city full of pride and hope, a city that’s alive.” My old buddy John Hickey, who was the Water and Power chief, coined the slogan “Holyoke. Best City by a Dam Site.”

Damn right.

 

Darby O’Brien, a Holyoke native, is the owner of the marketing and public relations firm Darby O’Brien Advertising in South Hadley.

LEDC Provides Grants, and Much More, to Small Businesses

By
Pedro Arroyo
Features Special Coverage

Getting a Leg Up

Pedro Arroyo

Pedro Arroyo says the LEDC mini-grant helped him and his sister, Elizabeth Arroyo, secure better signage for their business.

 

Tony Bermudez started his digital-media venture just before the pandemic hit.

And like just about everyone else who was in business at the time, he lost considerable momentum — and opportunities — when the state essentially shut itself down.

Indeed, his business has many components, but specially event video work, and for the first year or more of the pandemic … there were no events, or very few of them, anyway.

Bermudez, again, like many others, slogged his way through to the other side of COVID. But money has always been tight, and that’s why he considers himself fortunate to receive, and is very appreciate of, a mini-grant from the Latino Economic Development Corp. He is one of several to get one of the grants in a first round issued late last year, with another nine grants awarded in a second round just a month or so ago. Another round of grants will be awarded later in March.

‘Mini,’ in his case, means $1,100. But Bermudez was able to use it to secure software and some new equipment, specifically a lighting kit, that will help him take his business, Tony Digital Music & Media, to a higher level.

Beyond the small grant, though, Bermudez has been able to secure invaluable coaching from the LEDC, and through it he has been able to make important connections, including one with Mercy Medical Center that enabled him to secure work to create a video to help address the stigma attached to opioid addiction; work is expected to behind on that production soon.

Bermudez’s story is one of many that help bring to life the work going on at the LEDC, a new agency that BusinessWest profiled last year. Its mission, in simple terms, is to help employees become employers, said Andrew Melendez, director of Operations for the LEDC, and enable small businesses to take the next step.

It does this through a unique model focused on everything from these mini-grants to training programs offered by those coaches that will focus on everything from how to qualify for a business loan to workforce training to mental wellness, and much more.

“Capital infusions — putting money into the hands of small business owners — even if it’s only $1,000 or $2,000, can often make a huge impact, whether it’s a new business or even an existing business.”

As for the grants, they are indeed small, with amounts varying from $1,000 to $3,000 in the first few rounds. But small businesses just getting off the ground can use such funds to take important steps forward, Melendez said.

“Capital infusions — putting money into the hands of small business owners — even if it’s only $1,000 or $2,000, can often make a huge impact, whether it’s a new business or even an existing business,” he explained, adding that the grants are funded through $450,000 in overall support awarded to the LEDC by the state. “They can put that money to use in many different and important ways.”

Such was the case with Pedro Arroyo, who used his $2,500 grant to secure new and better signage for his business, Juguitos Healthy Grab & Go, at its new home on State Street in Springfield.

Arroyo and his sister, Elizabeth, saw a unmet need in Springfield for a place where people could get healthy foods in a hurry and moved forward to meet it, despite the pandemic, which was descending on the area just as they were getting started.

Jason Vásquez

Jason Vásquez envisions his business growing and someday being run by his son, Nazareh.

“We saw an opportunity to provide something that wasn’t really available anywhere in the city,” he noted. “We came together, took a chance and said, ‘let’s try this.’

The stories behind these businesses, and people taking chances — and the grants they’ve obtained — help shed important light on the important work being done by the LEDC, and how it is changing the business landscape in all kinds of ways.

 

Progress Report

It’s called the unrestricted construction supervisor’s license.

Jason Vásquez, owner of Nas Small Repairs, which specializes in small construction projects and repairs to homes and businesses, needs one to take his venture, and his career, to the next level. And he’s using his $1,000 mini-grant to buy the code and regulations books and other materials to help him attain that license.

“I want to enable my small business to grow, and in the future, I’d like to have a program for young people and women to learn about construction and maybe move into the field,” he explained. “And to do that, I need this license and the right personnel behind me.”

Vasquez’s use of his mini-grant is exemplary of the many ways they are being put to use and how important they are to small businesses who need them to gain some momentum with whatever might be written into their business plan.

And the names on the businesses that have received such grants in the most recent round show just how varied these business plans are. That list includes Faded Barber Lounge, Thomas’ Cleaning, 50-50 Food Truck, Agudelo Apiary, Burgos & Son Trucking LLC, and Top-Flight Nutrition.

It also includes Juguitos Healthy Grab & Go, a name that tells you all you need to know (or almost all you need to know), and a venture inspired by personal need.

As Arroyo tells the story, he and his sister, Elizabeth, were both looking to shed some weight and “take back their health,” as he put it, starting with their respective diets.

“It was difficult because I was a videographer, and I was on the road all the time — I didn’t have the time to make prepared meals, and would eat out a lot,” he went on, adding that he and Elizabeth set out to address their own needs, and those of countless others, by creating a business focused on smoothies, juices, soups, sandwiches, and other healthy offerings that, as the sign says, people can grab and go.

The venture started off at 112 State St., a small location that was hindered further by a lack of parking, Pedro said, adding that the business was nonetheless able to thrive at that location, and thanks to $75,000 in ARPA funding secured from the city, he and Elizabeth were able to move into needed larger quarters just up the road, at 133 State St.

The LEDC has provided assistance at many critical junctures, he said, including direction on how to secure ARPA funding from the city of Springfield.

This work in progress is just one of many that the LEDC has become involved with, through technical assistance and coaching, a mini-grant, or both. And it’s just one example of how this agency is trying to change Main Street, or State Street, in this case, by helping more people get into business and put their signs on buildings.

Bermudez isn’t there yet, but he’s moving in the right direction, thanks to many different kinds of support from the LEDC.

As noted earlier, he received a grant that he used to buy equipment that made an immediate impact on his venture, which specializes in video promotion, business presentations and advertising, animation, event photography, and more.

“We saw an opportunity to provide something that wasn’t really available anywhere in the city. We came together, took a chance and said, ‘let’s try this.”

But it has been the coaching, and the connections the LEDC has helped him make, that have been even more impactful, he went on, citing not only the Mercy project, but also a contract in Holyoke to teach video production to young people as just a few examples of how the LEDC has been able to help him seize opportunities.

“They have a great team there, and a forward-looking attitude to help Latino small businesses,” he said, adding that that are dozens of coaches, each with a specific niche, that can help individuals like himself not only create a business plan, but execute it.

Gilberto Amador

Gilberto Amador finds it rewarding to coach small-business owners to greater success.

Gilberto Amador, president and CEO of the Mass 2 Miami Consulting Group, is one of those coaches. He told BusinessWest he and other coaches at the LEDC act as a support network for new and emerging businesses.

He said the process starts with an hour-long meeting at which a game plan is developed for creating momentum and forward progress.

“They leave that meeting knowing what we need to work on,” Amador said, stressing the ‘we’ part of that equation, while emphasizing that the business owner needs to take ownership of the next steps and is held accountable for staying on the set course. “Maybe it’s a business plan, because many people are working on their business but they don’t have a business plan, or it could be marketing … whatever needs to be worked on.

“Sometimes it’s cash flow,” he went on. “You talk to them about cash flow and how their business functions, how they have to pay themselves from their business finances of their business, how to separate business from personal … these are things that a lot of business owners are not aware of or they haven’t been doing, and it’s very important for us to shed some light on these kinds of things so that these become more productive, and successful, businesses in our community.”

 

Bright Ideas

Amador described this work as very rewarding, especially as he sees small-business owners, such as Bermudez, Vasquez, and the Arroyos, take important steps forward and put their ventures on more solid footing.

“Part of being a business coach is really seeing the success of some of the businesses that are coming in,” he said. “They work so hard every day to do what they have to do … and we help them articulate what it is that they want to do and lay out the steps to get there. That’s where the rubber meets the road, and I love working with them because you get to see those lightbulbs go on.”

Turning on more of these lightbulbs is the unofficial mission at the LEDC, which has been busy handing out grants in recent weeks and will continue to do through the course of the year.

But that’s just part of the story. The other, much bigger part is helping these individuals get on a path to success, and stay on that path.

Jeff Fialky Ascends to Managing Partner at Bacon Wilson

By
Jeff Fialky
Law Special Coverage

Change at the Top

Jeff Fialky

Jeff Fialky

It’s called Service at the Pleasure of My Partners: Advice to the New Firm Leader.

And as that title might suggest, this book by Patrick McKenna and Brian Burke is intended for those lawyers who have, or soon will have, the title ‘managing partner’ affixed to their business card.

Jeff Fialky, a partner at Springfield-based Bacon Wilson, bought a copy of the book, which presents content built around real-life issues and questions, several weeks ago, after initial talks with Ken Albano, longtime managing partner at the firm, about passing the torch.

He said he’s read it, marked several passages, and dog-eared several of the pages, an exercise he described as just part of the transition process at the firm, one that should be completed by the spring.

“It’s a good resource to hear from other managing shareholders about coping with some of their challenges — what they encountered and what they had to overcome,” he said of the book.

As he takes the helm at Bacon Wilson, Fialky said he believes the firm is well-positioned for the future. It has what all firms this size — roughly 40 lawyers — are looking for in a solid mix of young lawyers, those at the mid-career stage, and several older, veteran lawyers. It also has an established presence in the region through its main office in Springfield and smaller locations in Westfield, Amherst, Northampton, and Hadley.

“The firm is in a phenomenal place,” he said. “We’ve been here for 135 years, and we have a solid foundation for the firm to succeed well on into the future — for another 135 years.”

There are challenges, though, especially when it comes to hiring young lawyers and maintaining that mix of talent. Indeed, there are fewer people graduating from law schools, and the competition for those who do is considerable and becoming more intense with each passing year.

“I felt the time was right for some new leadership, some younger leadership. Jeff is respected by everyone in the firm, and he’s the one that take the firm to the next level.”

“We’ve had significant challenges in retaining and identifying new talent,” he said. “The past few years have been really difficult to find people; it’s been very competitive, with all forms of employees, be it staff members, legal secretaries, administrative assistants, and lawyers. It’s all about supply and demand.”

Fialky said he is looking forward to leading the firm through these intriguing times and continuing a pattern of strong leadership that has enabled Bacon Wilson to continue to grow and expand its presence over the past few decades.

“I’m really excited for the opportunity,” he said. “My first reaction was just humility and comprehending the enormity of the responsibility and feeling really honored and humbled by it. When I came back to Springfield to Bacon Wilson, I was a mid-career transfer; I’d been practicing for a number of years at that point. I was so fortunate to be given an opportunity to start a career, and to think that, all these years later, I’d be in this position is something I would never have contemplated.

“But now that I’m here, I’m really appreciative for the level of responsibility that’s been given to me by my partners and my colleagues,” he went on. “And it’s something I take very seriously, but also with great energy and enthusiasm; I’m really excited.”

For this issue and its focus on law, BusinessWest talked at length with Fialky about his new role and what comes next for one of the most venerable firms in the region.

 

Firm Resolve

As he talked about his practice and large case load, his work in the community, the additional burdens that come with managing partner, and how he will manage it all, Fialky summoned that time-honored axiom ‘if you want to get something done, ask a busy person, and they’ll get it done.’

He has certainly been busy in recent years as chair of the firm’s corporate and commercial department, and also a member of the municipal department. He has also been involved in the firm’s governance and was one of the founders of its executive committee.

Overall, he specializes in sophisticated business, financing, and commercial real-estate transactions, representing the interests of business owners and lending institutions, as well as municipalities and landowners.

A BusinessWest Forty Under 40 honoree in 2008 and consistent finalist for the Alumni Achievement Award established several years later, Fialky joined Bacon Wilson in 2006 after nearly a decade in Eastern Mass., where he held senior attorney positions with some of the country’s most prominent Fortune 100 telecommunications and cable-TV companies. Prior to that, he served as an assistant district attorney in Hampden County after earning juris doctor at Western New England School of Law in 1994.

Albano told BusinessWest that, after six years as managing partner, including the three long and very challenging years defined by the pandemic, he felt it was time for a change at the helm. And he considers Fialky to be a logical and well-qualified successor.

“I felt the time was right for some new leadership, some younger leadership,” he explained. “Jeff is respected by everyone in the firm, and he’s the one that will take the firm to the next level.”

Fialky acknowledged that he takes the helm at an intriguing and challenging time for law firms, which are coping with everything from a difficult hiring market to transitioning to new ways of doing work in the wake of the pandemic, to new technology that tempts consumers to find their legal answers online instead of from a trained attorney.

“Technology, as it pertains to the law, is really interesting and difficult to predict,” he noted. “The legal industry is a trailing indicator of technology; we’re never at the forefront of innovation. The next big question is what happens with artificial intelligence down the road. There’s been quite a bit of recent press of artificial intelligence and service professions like the law and accounting. What’s so interesting about the law is that technology is a platform to accomplish the outcome, and how personal the law is relative to an attorney-client relationship.

“With so many of our clients … while they can pick up the phone, while we can Zoom from 15 miles away, they want to come in, they want to sit down, and they want to talk to their attorney,” he went on. “These are relationships that last decades, throughout people’s lives … you can’t replace that with technology.”

When asked about the management style he will take as he addresses these and other issues, Fialky said it will be one grounded in collaboration.

“That’s how I’ve engaged in our commercial department, where we ask for many opinions before we make a decision,” he explained. “But then, when decisions need to be made, we make a decision and stand by it. That’s how I intend to manage.”

 

Case in Point

Getting back to that book he’s been reading, Fialky said it’s a collection of thoughts from managing partners on subjects ranging from following a successful leader to keeping up morale when a firm is under duress; from creating performance standards to managing one’s time.

Soon, he won’t be reading about such matters, but coping with them in real time.

It’s a challenge he’s looking forward to, one he’s spent a career preparing for, and he knows he will take it on not by himself, but in collaboration with others.

Bay Path’s Women’s Leadership Conference Returns on April 6

By
Robin Roberts
Special Coverage Workforce Development

Fired Up

By Elizabeth Sears

 

Betsy Allen-Manning

Betsy Allen-Manning

Tunde Oyeneyin

Tunde Oyeneyin

Robin Roberts

Robin Roberts

The Women’s Leadership Conference is turning up the heat this year.

When Bay Path University’s signature annual conference returns to the MassMutual Center on Thursday, April 6, the theme will be “Ignite” — an extension of last year’s theme of “Reimagine.” The goal, simply put, is to ignite the post-pandemic professional plans of conference attendees and help turn them into reality.

“Last year, it felt important to bring the community back together to reimagine what may come next that may have shifted over COVID and from being away from the office place,” said Melissa Welch, Communications and Content director at Bay Path and co-chair of this year’s Women’s Leadership Conference (WLC). “That went so beautifully last year, with people in the community coming together to reimagine what came next for them. So this year, how do we build on that? How do we bring that same excitement and motivation back to the community?”

Bay Path President Sandra Doran echoed this sentiment.

“We want them to reignite their passion,” she said. “They’re professional women looking to further their career, looking to further their own professional journey, whether it’s in their existing career or looking outside of that. And this is the place to do it.”

The university’s 26th annual conference will feature TV host Robin Roberts and several other speakers (more on them later). The conference typically draws attendees not only from the Pioneer Valley, but from Eastern Mass., Connecticut, New York — anywhere within driving distance, due to the power of the speakers and the power of community.

“This is a new group, a new community … they’ve got their work community, they’ve got their family community, but now maybe they have a professional-development community. That is incredibly powerful,” Doran said. “If you are a mid-level manager or somebody who’s looking to executive leadership, or somebody who’s just entering into your career, and you’re trying to figure out, ‘what are those skills? What are those attitudes? What’s that growth mindset that is going to propel me to success in the workforce?’ Those are the professionals that you will find in the audience.”

“It’s very much experiential. Some people describe it as transformative. Some people describe it as the only conference they go to in any year because of the value that it brings to them personally as well as professionally. “

She explained that people keep coming back year after year because they’ve experienced growth, and they want to share that growth with others in the room. The conference provides a unique environment — a sort of support system — where professionals can share how they’ve grown in their career, and what comes next on that journey.

And this isn’t a conference where people just come and sit in rows to listen to speakers, Doran continued.

“It’s very much experiential. Some people describe it as transformative. Some people describe it as the only conference they go to in any year because of the value that it brings to them personally as well as professionally. I can’t emphasize enough how this is not a conference where we’ve just got 1,400 chairs lined up in a room. It is not that — everybody sits at a table. Every table is a conversation topic around something to do with personal or professional growth.”

 

Face Value

This is the second year WLC has returned since a two-year absence during the pandemic. With such a deep focus on the experiential quality of the conference, a virtual alternative was simply not an option, so no conference at all was held in 2020 or 2021.

“I think what was telling in the pandemic is a lot of things stopped, so in our case, our conference stopped for two years — and to come back last year and have 1,400 people come … people missed it so much over those two years,” said Karen Woods, Bay Path’s assistant vice president of Brand Strategy, Marketing, and Integrated Communications and WLC co-chair.

In addition to individuals who buy tickets to attend, Woods noted that companies call in inquiring about the upcoming conference far in advance. Businesses eagerly await to hear who the speakers each year will be and buy tables for their employees, knowing the professional-development value the conference holds.

Sandra Doran emphasizes the interactive nature of the conference, which is not a place to sit in rows and just listen.

Sandra Doran emphasizes the interactive nature of the conference, which is not a place to sit in rows and just listen.

Indeed, this year’s keynote speakers come from vastly different backgrounds and careers, but share something in common: the ability to ignite motivation in others.

The conference will begin with a motivational and humorous talk from author and speaker Betsy Allen-Manning that will guide attendees through exercises that aim to set the tone of the conference and ignite a day of learning. The founder of Corporate Culture Training Solutions, a leadership-training company, she specializes in creating positive employee experiences as well as developing leaders who are equipped to handle a hyper-competitive marketplace.

“Success doesn’t necessarily mean the top person in the company,” Woods said of the first keynote session. “Every single one of us needs that secret sauce to our own success, and how do we get there?”

The luncheon keynote talk will be given by Tunde Oyeneyin, a cycling and bike boot-camp instructor from Peloton who has become known for her empowering and motivational cycling sessions.

Oyeneyin was a professional makeup artist for 15 years, but after lifting the confidence of her clients through her beauty skills for so long, she realized that her true calling was in motivating others. She became a cycling instructor in Los Angeles and ended up being hired onto Peloton’s instructor team. She trains up to 20,000 riders per day through her live motivational classes. Now, she’s taking to the WLC stage to spark the energy of attendees and bring forward their inner passions.

“When you’re going to ignite new business plans, and you’re going to bring those forward, whether it’s personal or professional goals, you really need to have that ability to trust your gut — to find your voice, to be able to advocate for what’s next in your career,” Woods said.

The day will end with a keynote talk from Roberts, well-known as a Good Morning America co-anchor, Emmy Award and People’s Choice Award winner, author, entrepreneur, and Women’s Basketball Hall of Fame inductee, among other achievements. She’s going from the screen to the stage for a moderated Q&A session with Doran.

“We are so excited to introduce Robin Roberts to our WLC audience,” Woods said. “Everything she has done has been a way to ignite what’s next. From the court, when she played basketball, through all of her interviews, those that she’s spoken with and worked with over the years, to writing books — award winners — she’s the perfect person to end our day.”

 

Breaking Out

The conference will also feature four breakout sessions offering lessons and activities designed to give attendees valuable takeaways that can be applied to their professional lives.

Session A, titled “Forging and Managing the Hybrid Workspace” and led by Alexandra Samuel, will address how attendees can better navigate the hybrid workspace culture that emerged post-COVID. Samuel is an author and digital-workplace expert who seeks to help her audience solve the puzzle of balancing in-person and remote work in hopes of making the now-popular hybrid format a more viable piece of their workday.

Session B is called “Igniting Your Innovation and Understanding Your Onlyness” and will be presented by author and speaker Nilofer Merchant. She will discuss the concept of ‘onlyness’ — identifying what you alone bring to the table that somebody else can’t, what makes you stand out in the workplace, and how to find power in this self-knowledge. Merchant will help attendees discover their ‘onlyness’ and teach them how to socialize it to create real change.

Session C is titled “You’ve Got the Seat at the Table, Now What?” and will be led by Pirie Jones Grossman, a TedX speaker, author, and life-empowerment coach. She will offer an extension to the common conversation of how to reach corporate positions as a woman — and what to do once there. Sharing her research, she will challenge the idea that successful women in the corporate world need to show up like men, instead offering information on the unique leadership instincts and strengths of women’s brains.

Session D is called “The Power of Inclusive Leadership,” and will be led by Juliet Hall, an advisor, leadership consultant, speaker, and author. Objectives of this session include how workplaces can transform their leadership teams to build a strong foundation and promote equity, how workplaces can adjust their internal work teams to create a more inclusive environment for their employees, understanding unconscious bias and microaggressions, and how leaders can remodel internal culture.

For more information on the 2023 Women’s Leadership Conference, visit www.baypath.edu/events-calendar/womens-leadership-conference.

Hospitals Challenged by Rising Costs, Falling Revenues

By
Health Care Special Coverage

Critical Condition

 

 

An “inflection point.” 

That’s what Dr. Robert Roose says hospitals have reached when it comes to their bottom lines and the ongoing challenge of making ends meet at a time when revenues continue to fall and expenses continue to rise. 

Hospitals have perpetually struggled from a fiscal standpoint amid continually rising prices, the need to constantly upgrade technology and innovate, and reimbursement rates from payers that have historically been below 80 cents on the dollar, Roose said. But trends and conditions that existed before the pandemic have only been exacerbated over the past three years, and now, hospitals are at a critical, and extremely challenging, crossroads. 

“There’s no way to sugarcoat it — hospitals and health systems across Massachusetts, and across the majority of the country, are finding themselves struggling in many regards, and at an inflection point where there are going to need to be continued efforts to support hospitals, or there will continue to be systems and hospitals that remain in distress,” said Roose, chief administrative officer at Mercy Medical Center in Springfield, part of Trinity Health Of New England. 

He quantified the situation by noting that Mercy is on a path to lose roughly $25 million for the fiscal year that will end in June, about the same amount as last year. 

“There’s no way to sugarcoat it — hospitals and health systems across Massachusetts, and across the majority of the country, are finding themselves struggling in many regards, and at an inflection point where there are going to need to be continued efforts to support hospitals, or there will continue to be systems and hospitals that remain in distress.”

Dr. Robert Roose

Dr. Robert Roose

“It will be challenging to persist with the current models that are in place in the same ways that we have in the past,” Roose went on. There are a multitude of reasons for that, but the challenges remain significant, and the pathways forward are going to require multiple initiatives and ongoing support from a variety of different angles. 

Dr. Lynette Watkins, president and CEO of Cooley Dickinson Hospital, an affiliate of Mass General Brigham, agreed, noting that COVID put the challenges that all hospitals are facing under a brighter spotlight. 

“The past three years have been particularly challenging,” she said, citing everything from staffing issues to the aging of the population and the pressures they put on hospitals. “What COVID laid bare is that all of these issues are there, and that it’s incumbent on us to be creative, accelerate the solutions, and leverage a lot of the tools that we were in many ways reticent to use, such as telehealth and virtual visits. 

“While this situation has challenged us, it has also provided us with an opportunity to think differently, to treat patients differently, to engage differently — with our patients and with the community,” Watkins went on, adding that she and her team at CDH are working to taking full advantage of that opportunity. 

Spiras Hatiras, president and CEO on Holyoke Medical Center (HMC), concurred. In remarks made to BusinessWest for its annual Economic Outlook, he spoke of both challenge and opportunity, on several fronts, but especially when it comes to workforce issues. 

The ongoing workforce crisis, while it has impacted all sectors, has put healthcare providers, and especially hospitals, at an extreme disadvantage, especially when it comes to nursing and the need to fill vacancies with contract or ‘travel’ nurses, which can cost two or three times what a staff nurse might, Hatiras noted. 

“In healthcare, there is a great deal of concern, and the most concerning part is the continuing shortage of personnel, which has created this market for temporary staffing at rates that are truly outrageous,” he said. “To put things in perspective, we have about 20 nurses on temporary staff that we get through agencies. Those 20 nurses, on an annual basis, cost us $5 million; each nurse costs us $250,000 because the rates are exorbitant — the nurses get a lot of money, but there’s also a middleman that makes untold amounts of money from this crisis. 

“As a nation, the federal government is doing a lot of things — they did some things with railroad workers, they’re helping Ukraine, they’re talking about a lot of things. They should have stepped in and regulated this and said, ‘the pandemic created a tremendous amount of shortage; we cannot allow private companies to go out and profit from that shortage of staffing and bring hospitals to their knees.’ With all this, it’s going to be very difficult for hospitals to cope, and that’s why all our strategy centers around finding a way to attract nurses here.” 

For this issue, BusinessWest takes an in-depth look at the fiscal challenges facing hospitals today, and what must happen for these institutions to weather this severe storm. 

 

Dollars and Sense 

When asked how hospitals arrived at this inflection point, as he called it, Roose said it was a combination of factors, but, as he and others noted earlier, it comes down to an exacerbation of, to borrow an industry term, some pre-existing conditions. 

These include a trend toward outpatient, rather than inpatient, care, which certainly impacts overall revenues, and also shortages on the workforce front, which increase the cost of doing business in many ways, and sharp rises in prices of … well, just about everything, from medications to PPE. 

“What COVID laid bare is that all of these issues are there, and that it’s incumbent on us to be creative, accelerate the solutions, and leverage a lot of the tools that we were in many ways reticent to use, such as telehealth and virtual visits.”

Dr. Lynette Watkins

Dr. Lynette Watkins

“We’ve been dealing with the aftershocks of one of the most significant public-health crises of our time,” Roose explained. “And it occurred at a point where many shifts in healthcare were already underway, including a shift from inpatient care toward the delivery of care in a lower-cost outpatient, ambulatory setting where the trends of consumers, our patients, were beginning to change, but where the reimbursement for those services had not been able to keep up with those changes. This was layered on top of an existing healthcare-workforce shortage. 

“So, the pandemic caused a significant challenge amidst what was already several headwinds that were providing stiff challenges for smaller hospitals across the country to overcome,” he went on, “forcing them to transform, to look differently, to meet those challenges and the needs of our community.” 

Elaborating, he turned the clock back to late 2019 for perspective. He said that there was already significant movement in how healthcare was being delivered. More services were being provided in settings outside hospitals, he explained, with surgeries taking place in outpatient, ambulatory settings. Meanwhile, insurance companies were adjusting as well, covering certain types of procedures, such as joint replacements, only if they took place in those lower-cost settings. 

“With that, inpatient volume was beginning to decline by a few percentage points,” Roose said, adding that those shifts were beginning to accelerate when the pandemic hit. Overall, there has been movement away from the fee-for-service model that had dominated healthcare delivery for decades and a shift toward promoting wellness, he explained, but not enough movement to shelter hospitals, especially smaller community hospitals, from those headwinds he described earlier. 

“It has certainly not kept pace with the dramatic impact on volume and the lack of reimbursement for fee-for-service care that has occurred to make up that gap,” he went on, adding that staffing shortages already existed before the pandemic, but they, too, were exacerbated by COVID and its many side effects. 

Watkins agreed, and, like others we spoke with, she said revenues have certainly improved since the depths of the pandemic, but they are still not at pre-COVID levels. 

And there are many other forces at play that are challenging hospitals, she added, including a shortage of workers at post-acute facilities such as nursing homes, which often leaves patients who are otherwise ready for discharge with no place to go, putting more pressure on hospitals. 

“We have two, three, or sometimes more patients who are ready for medical discharge, but when we don’t have a place to send those patients, so they stay with us,” Watkins said. “And that means that some patients who need to in an acute-care facility are in the emergency room or cannot get in; that’s been a huge, huge challenge.” 

 

Work in Progress 

One of the factors greatly impacting hospital finances is the ongoing workforce crisis, which has certainly increased the cost of providing care. Roose told BusinessWest that, while Mercy’s overall workforce is down perhaps 20%, due to a variety of factors, its workforce costs are still 7% to 8% higher than before the pandemic. 

Indeed, with many positions, not just nurses, hospitals have had to rely on contract employees, which are considerably more expensive than those on staff. 

“In healthcare, there is a great deal of concern, and the most concerning part is the continuing shortage of personnel, which has created this market for temporary staffing at rates that are truly outrageous.”

Spiros Hatiras

Spiros Hatiras

But there are other factors as well, said Watkins, including additional overtime, bonuses needed to attract job candidates, shift bonuses, and more. 

“It’s a huge challenge, and it significantly affected our financial performance, as well as that of other systems in the Commonwealth and across the country,” she said. “And we have to make sure that we are staffed to take care of the patients here that are sicker and that are staying longer.” 

Elaborating, she explained that Cooley Dickinson used very few contract nurses prior to the pandemic, but the need for such personnel has risen dramatically due to retirements, burnout, and individuals simply leaving the profession to do something else. 

These forces have left hospitals to fill the gaps as best they can and, for the long term, focus energies — or even more energies, as the case may be — on attracting and retaining personnel across the board. 

Indeed, Hatiras told BusinessWest that closing the staffing gap is critical because it will bring down the overall cost of doing business and help hospitals cope with lower amounts of COVID relief and revenue levels still below those from before the pandemic. 

“With ARPA funds drying up, we’re going to have pull ourselves up by our bootstraps. So our emphasis is on closing the staffing gap,” he said. “If we can do that, and not bleed money on the expense side, I think we’ll be OK; I think we’re poised to have a good year, as long as we’re able to attract nurses here.” 

Elaborating, he said closing this gap involves making HMC a preferred place to work, one where applicants with choices will want to go — and hopefully stay, thus reducing the high cost of continually filling vacancies. 

“We’re doing OK because we had to respond to what was going on in the market by creating even more attractive reasons for coming here — we raised our rates, we’re enhancing benefits, and at the same time, we’re looking at economic assistance for the lower-earning employees,” he said. “Where it’s more difficult is with the professionals because the dollars are significantly more, so competing just on price is difficult. The key for success — what keeps people here and makes them come here — is the culture of the place, so we put a tremendous amount of effort in the 10 years I’ve been here on creating a good culture. Now, it’s become a differentiator, and we’re pushing it even more. We’re an employer that listens to employees, responds to their needs, and cares. That’s what people want.” 

Roose concurred, and told BusinessWest that the recent challenges that hospitals have faced have put even more emphasis on the importance of people in the overriding task of providing quality care to patients — and the overall success of a provider. 

“Never has it been more apparent, and critical, to realize that people are the vehicles through which we deliver healthcare,” he said. “We do not deliver services that can be provided by machines; we’re reliant upon the great skills of care providers — and we don’t take that lightly.” 

 

Bottom Line 

Moving forward, Roose said, as hospitals cope with these various challenges — and, again, there are many of them — state and federal governments need to step up and continue to provide needed support. 

“The ARPA funding and other sources of relief through the pandemic and beyond, which is greatly appreciated, is not enough to close the gap from the challenges that we have encountered,” he noted. “The cost structure for delivering care has increased so dramatically, the models for fee-for-service care have not shifted quick enough, and the rates from commercial and other payers has not kept up with inflation. 

“So even with all that support, hospitals like Mercy Medical Center are expected to lose about $25 million this year, which is very similar to what it was the year before, and Trinity Health Of New England lost $65 million in fiscal 2022 from operations,” he went on. “And that puts incredible stress on hospitals.” 

Indeed, it does, and these losses, and the forces behind them, explain why hospitals are at an inflection point, and why change is needed if they are to move from critical condition fiscally to something far more sustainable.

The Faces of Holyoke Business

By
Owner Nicole Ortiz
Features

Hazen Paper Co.

This Family Business Has Been Innovating for Nearly a Century

President and CEO John Hazen

President and CEO John Hazen

John Hazen figured there was some risk in purchasing his first holographic printer back in 2005. But, as the third-generation co-owner of Hazen Paper Co. in Holyoke, he also saw the potential.

“I always say I was like Jack and the beanstalk,” he told BusinessWest. “Dad sent me out with a bag of beans — ‘grow the business, son!’ — and I bought this crazy thing called a holoprinter.”

But he was determined to build Hazen’s footprint in the world of holographic printing, and plenty of other technology at the company sprung from that first investment.

These days, Hazen regularly wins awards from the Assoc. of International Metallizers, Coaters and Laminators for everything from beverage packaging to annual programs for the Basketball Hall of Fame induction ceremonies and the Super Bowl. The 200-employee company has also been recognized for workforce-development efforts like an internship program with Western New England University that helps engineering students gain experience.

Clearly, Hazen Paper has come a long way from its origins in 1925, when Hazen’s grandfather, also named John, launched the enterprise as a decorative paper converter and embosser. His younger brother, Ted, joined Hazen in 1928 to help manage the growing company, which grew rapidly in the 1930s and expanded into printing and foil laminating by the 1940s.

Ted’s son, Bob, joined the company in 1957, and John’s son, Tom, signed on in 1960, and the second generation dramatically expanded the company, which became known worldwide for specializing in foil and film lamination, gravure printing, specialty coating, and rotary embossing. Hazen products became widely used in luxury packaging, lottery and other security tickets, tags and labels, cards and cover stocks, as well as photo and fine-art mounting.

The third-generation owners, John and Robert Hazen, joined the company at the start of the 1990s, and have continued to grow and expand, with a special emphasis on coating, metallizing, and — of course — holographic technology.

“It really was a startup, a technology startup in an older company. And ultimately, we really reinvented Hazen Paper,” John told BusinessWest. “The holographic technology ended up feeding the old business. So it’s like we installed a new heart in an old body.”

—Joseph Bednar

 

Crave

Nicole Ortiz Has Turned a Love of Food into a Growing Enterprise

Owner Nicole Ortiz

Owner Nicole Ortiz

Nicole Ortiz was born in Springfield, but became intrigued by food during her four years in Cleveland.

There, she worked her first job in a kitchen, prepping and washing dishes in a small Puerto Rican restaurant, and the city’s West Side Market — filled with fresh foods from all over the world — became her favorite place, where she became captivated with food culture, local ingredients, and … food trucks.

After moving back to New England in 2016, she put her business degree and an itch for entrepreneurship to work, enrolling in the HCC MGM Culinary Arts Center, then winning a pitch contest and setting up a successful pop-up restaurant experience at HCC. She bought a food trailer, graduated from both HCC and EforAll Holyoke, and launched a food-truck business called Crave, specializing in modern Puerto Rican cuisine, all in 2020.

“My father is from Puerto Rico, and my mom’s family is from Italy and Finland,” she said. “I think the food we offer is different and unique, and draws inspiration from the many walks of life that I have had the opportunity to experience.”

Despite opening into the teeth of the pandemic, Crave Food Truck was a big-enough hit that Ortiz started sharing storefront space on High Street with Holyoke Hummus early in 2021, where she could prep meals and sell takeout orders. In June, she solely took over the lease, and Crave had a full-service restaurant, which now offers sit-down and takeout service, in addition to the food-truck operation and catering gigs.

Now managing a staff of eight, Ortiz is proud to be part of an ongoing entrepreneurial renaissance on High Street (see related story on page 36).

“We want to build on that and let people know what’s going on down here. Before, this street had a bad image, and a lot of people didn’t want to come down here. We created a High Street Business Association to look at all the businesses here on High Street and get all of us on the same page, working for a common goal — you know, bringing more people down here. That’s really exciting.”

—Joseph Bednar

 

Nick’s Nest

Area Residents Relish Visits to This Holyoke Landmark

Co-owner Jenn Chateauneuf

Co-owner Jenn Chateauneuf

If you’re looking for perhaps the most iconic hot dog this side of Fenway, look no further than Nick’s Nest — a Holyoke landmark since 1921.

What originally started as a simple popcorn cart evolved into the well-known hot dog stand it is today, more than a century later. It started when founder Nick Malfas was told by his wife that the original location looked like a little bird’s nest — and the name ‘Nick’s Nest’ stuck.

The current owners of 18 years are Jenn and Kevin Chateauneuf.

“We always worked in the restaurant business; my husband was a bartender, and I was a waitress,” Jenn said. “We always wanted to venture out and own our own place. I’m from Holyoke, he’s from South Hadley, so obviously we knew of Nick’s Nest. When it came up for sale, we just jumped at the opportunity.”

Nick’s Nest has been at its current location on Northampton Street since 1948, but Jenn and Kevin have since expanded the menu from its original offerings. “Our specialty is hot dogs; when we bought the place, it was hot dogs, baked beans, and popcorn,” she explained. “We’ve added french fries, onion rings, homemade soups … we have homemade potato salad, homemade macaroni salad.”

Nick’s Nest continues to be the area’s go-to destination for hot dogs. In fact, the venerable eatery has won ‘best hot dog’ honors in the Valley Advocate’s reader poll every one of the 18 years the Chateauneufs have owned the restaurant.

In addition to its food offerings, Nick’s Nest has an assortment of branded merchandise including T-shirts and hats that display the name of the establishment along with its slogan — “A Holyoke Tradition” — for patrons to proudly show their love of good food and community.

Though Nick’s Nest has achieved much success over the years, Chateauneuf noted that it hasn’t been without its fair share of trials.

“We try to do a lot for the community because, obviously, they support us,” she said. “They were tremendous through COVID. We’re happy that we’re still standing after those couple of years because a lot of small businesses can’t say that.”

—Elizabeth Sears

 

Star Dancers Unity

This Business Helps Young People Take Positive Steps

Alex Saldaña has made important moves to improve his community — dance moves, that is.

He’s been the owner and operator of Star Dancers Unity on High Street in Holyoke for the past 10 years. He originally became an enrichment dance instructor for Holyoke Public Schools, which is what inspired him to open his own business.

“I pretty much didn’t know what I was getting myself into,” he said. “But it’s just finding the opportunity — to be able to open a center in our community for youth that can benefit from dance services.”

Saldaña knew he wanted to use his background in dancing for good within the community, and he envisioned a space where area young people could go, noting high rates of teen pregnancy at the time of the studio’s opening.

“My inspiration was to be able to help some of those kids get some different activities besides being on the streets or doing things other than being productive in the community,” he said.

Star Dancers Unity currently has 65 students enrolled, said Saldaña, adding that Holyoke has been a great place to run his growing dance studio.

“The community has been supportive of my business, and also the aspect of understanding that I serve not just the youth but families in povery,” he explained. “I try to keep my tuition in a reasonable price range where it could be affordable to all families.”

As an extension of this work, Saldaña has taught salsa and hip hop for Holyoke Public Schools, and has been a visiting teacher in local afterschool and summer programs throughout the region. Currently, he works as a family coordinator for Holyoke Public Schools.

Star Dancers Unity not only participates in dance competitions, but is involved in many community events as well, from Celebrate Holyoke to performances at Holyoke High School for Hispanic Heritage Month.

“We partner up with different art pageants and do things for the schools,” Saldaña said. “When they have cultural diversity times, we also do presentations there.”

Clearly, by creating a safe, inclusive space, Star Dancers Unity is offering young people much more than dance lessons.

—Elizabeth Sears

 

Black Rose Trucking

These Two Women Are Hauling a Load of Ambition

Co-owners Yolanda Rodriguez (left) and Ashley Ayala

Co-owners Yolanda Rodriguez (left) and Ashley Ayala

All Yolanda Rodriguez and Ashley Ayala needed to start a hauling company was … well, a truck. Soon, they will have two. And they’re not stopping there.

That second truck is the result of a successful crowdfunding campaign on Patronicity, bringing in $21,448 from 35 backers, more than their goal of $19,950. It’s an example of growing by thinking outside the box.

“Our long-term goal is to have more equipment and do more transport, which means more employees and growing our company,” said Ayala, the daughter in the mother-daughter ownership team that launched Black Rose Trucking three years ago. “We definitely have big dreams of having a lot of trucks, and being able, in the future, to offer different services than what we do now.”

Rodriguez has been in the commercial trucking industry for a long time, and Ayala eventually caught the bug. “She had a dream of owning her own business,” Ayala said. “She’s passionate about what she’s doing, and that kind of rubbed off on me. So a few years ago, I ended up getting my commercial driver’s license as well. And we decided to make a business out of it. Her dream kind of became my dream.”

COVID-19 delayed the process, and Black Rose didn’t start taking jobs in earnest until early 2021. “We just kept going until everything kind of opened up,” Ayala said.

They haul asphalt and other materials to and from construction sites, as well as doing paving and milling work for contractors and on highway projects, all the while taking pride in their position as women of color in a male-dominated field — and pride in their city as well.

“I was raised in Holyoke, so I see how Holyoke has progressed. And I’ve seen all these small businesses also come about and grow,” Ayala said. “We see these restaurants and other businesses come about that are owned by women of color. You can see every day how they’re progressing, and they’re still around. It’s definitely a nice feeling to be a part of that.”

—Joseph Bednar

 

Holyoke Sporting Goods

This Venerable Institution Helps Foster Team Spirit

Owner Betsy Frey

Owner Betsy Frey

Nothing says ‘team spirit’ quite like matching uniforms, and whether you’re on a sports team, a sales team, or even team Gas & Electric, there’s a place in Holyoke to find your team spirit — Holyoke Sporting Goods.

Originally founded in 1928 in downtown Holyoke by James Clary, the company moved to its current location on Dwight Street under current owner and operator Betsy Frey in 2005.

“It’s in a much easier section of town to get to, we’re right off of the highway, which is convenient,” Frey said. “We have our own dedicated parking lot, which is nice, too; you don’t have to park on the street.”

Holyoke Sporting Goods caters not only to sports teams, but to many area businesses. “We do a lot of schools; we sell their sports equipment and their uniforms,” Frey said. “Then we do leagues like Little Leagues — we’ll supply them with all their baseballs, their equipment, their uniforms. I also do a lot of municipal stuff for the city of Holyoke or the city of Springfield, like Holyoke Gas & Electric, Water Works, Housing Authority, all the uniforms that they wear — they’ll wear shirts and stuff with a company logo on them. So we do all that.”

And with St. Patrick’s Day — along with Holyoke’s famous St. Patrick’s Day Parade — right around the corner, look no further than Holyoke Sporting Goods for related merchandise.

“Right now, we’re doing a lot of stuff for St. Patrick’s Day,” Frey said, “so I have a lot of Holyoke stuff with shamrocks and things like that.”

Frey said she enjoys running a business in Holyoke, adding that she gets a real team-spirit feeling from the city.

“Oh, it’s great,” she said. “Holyoke’s a great place to be in business. The people here are extremely supportive; they like to support their local businesses. I sell a lot of stuff in the store that has ‘Holyoke’ on it or is related to Holyoke. The people in Holyoke are wonderful; they support the business. This is a good community to have a business in.”

—Elizabeth Sears

 

Hadley Printing

For 125 Years, This Holyoke Staple Has Been on a Roll

Owners and brothers Greg (left) and Chris Desrosiers

Owners and brothers Greg (left) and Chris Desrosiers

Hadley Printing has been a family-owned business for 125 years. Currently in its third generation under the direction of brothers Chris and Greg Desrosiers, the commercial printer offers digital printing, offset printing, and mail services to a wide variety of customers in New England.

The business originated in South Hadley, but in 1976, it moved to its current location on Canal Street in Holyoke. When asked about operating a business in the 33,000-square-foot building alongside one of the city’s historic canals, Vice President Greg Desrosiers had a lot to say.

“We’re in an old mill building … it used to be a silk company years and years ago; that’s when it was originated, so we’re kind of in an old silk mill,” he said. “The building itself serves us well — these mill buildings were made really well back in the day; so long as you take care of them, they serve you back really well. Obviously, it has tons of windows with natural light. In a manufacturing setting, that’s really, really welcomed and beneficial.”

Desrosiers noted that many manufacturing settings don’t have any windows to allow natural light to come in, so having the abundant natural light of one of the Holyoke mill buildings is much preferred to the usual dreary setting of four solid walls. The water view of the canal is not only another added bonus for day-to-day working pleasure, but it actually helps with the printing itself — Desrosiers can say with certainty that at least 50% of the company’s power is hydroelectric, but noted the actual percentage is probably much higher than that.

Hadley Printing, with 30 employees working across two shifts, has found another advantage to being located in Holyoke aside from operating out of the former silk mill. The company services customers in Connecticut, Vermont, New Hampshire, the Boston area, and Albany, in addition to local customers, making Holyoke a sweet spot.

“It’s really the crossroads of New England, with 91 and the Mass Pike intersecting right through Holyoke,” he explained. “It’s the center of our customer base. We’re in the middle of who we service.”

—Elizabeth Sears

 

International Volleyball Hall of Fame

For a Half-century, It Has Lifted Up Its Sport and Its City

Executive Director George MulryStaff Photo

Executive Director George Mulry

Honor. Preserve. Promote.

Those three simple words reflect a robust, multi-pronged effort to celebrate the sport of volleyball and secure its future, and George Mulry detailed just a few of those prongs. Or spikes, if you will.

“On the honor side, we certainly recognize the inductees and those worthy of enshrinement in the Hall of Fame,” said Mulry, the Hall’s executive director. “But with some of our awards, we’re recognizing local individuals and organizations that are doing great things, not just for the sport of volleyball, but to help move the Volleyball Hall of Fame forward, which in turn helps move the city of Holyoke forward.

“The preserve side is really where we’re focusing a lot of our time now,” he added. “We have our Archival Preservation and Community Access Project, where we’re going through our entire archive, cataloguing it, and trying to digitize it and make it available as a resource library for the area. That will help bring some scholars in, which will give us an opportunity to improve the exhibits that we have and improve some online exhibits as well.

“And on the promote side, we’re not only trying to promote the growth of volleyball, but we want to promote volleyball itself within our region,” Mulry said, listing events like a summer volleyball festival, the collegiate Morgan Classic tournament at Springfield College, and no-cost youth clinics. “We’re just promoting the sport as a whole, while at the same time promoting the Hall of Fame as that vehicle for telling the story.”

From the Hall’s inception in 1971 to the opening of its current facility on Dwight Street in 1984 through today, with conversations taking place about what a future Hall of Fame might look like, Mulry said Holyoke has always been top of mind.

“For over 50 years, the city has really embraced being the birthplace of volleyball and used that as an economic driver for tourism and economic spinoff,” he explained. “There are a lot of really exciting things going on. But it’s the support that we’ve received from the city of Holyoke that really makes the whole thing go.”

—Joseph Bednar

 

Valley Blue Sox

This Team Has Become a Summer Tradition in Holyoke

If you visit Holyoke during the summertime, you might catch the Valley Blue Sox in action at Mackenzie Stadium.

The Blue Sox, originally known as the Concord Quarry Dogs, began in New Hampshire but have since rebranded and have called Holyoke their home for more than a decade now. The team is part of the New England College Baseball League, with players coming from all over the U.S. each summer.

“Having a team in Holyoke is great for us; you have a really loyal fan base, the same fans that usually come to a lot of games, so we get to know the same people throughout the summer in the city,” said Tyler Descheneaux, the new general manager. “The community really rallies around it.”

He went on to explain the team’s national impact as well as local significance.

“The purpose of this league is to try and have players that are trying to make it to that next level, to the major leagues, play summer ball,” he explained. “Our league is ranked as one of the top leagues in the entire country for summer leagues — last year, we were number two in the entire country. It’s a highly coveted league, so a lot of MLB scouts or even college scouts will come to our games to see how these players are.”

The team is going to bat with plenty of new promotions this season, including a partnership with Michael’s Bus Lines on a raffle, with one lucky fan winning a free bus ride for 25 people. Additionally, opening weekend will feature a giveaway of shirts to the first 250 fans who come to the game, and these aren’t just any shirts — the team is debuting a new logo this season, and this will be the first chance for fans to sport the team’s new look.

The Blue Sox are actively involved in the community — on and off the field.

“One thing that we do every summer is we always hold different youth baseball clinics, which usually last a week. We always hold one in Holyoke, and that’s coming up,” Descheneaux said.

With so much in store for the team and the community, this summer seems to be shaping up to be a home run.

—Elizabeth Sears

 

Marcus Printing

For Almost a Century, This Press Has Found Success

The printing industry has seen plenty of changes over the past century, but they’ve only accelerated in the new century, said Susan Goldsmith, president of Marcus Printing.

“Technology in printing has changed more rapidly in the past 20 years than the 100 years before that,” she noted. “We have basically kept up with technology, starting with eliminating film from the printing process and going direct to plate, and then getting into the digital world and most recently expanding into mailing as well as wide-format; we’ve become a little bit of everything to everybody.”

It’s a model that works for Marcus, she added. “We couldn’t be just a standalone digital shop, or a standalone offset shop. We’re a mid-sized print shop. That’s where we’re most comfortable — not printing a million pieces, but we can print 50,000, or we can print two for you. That’s been the niche we always wanted to serve.”

The third-generation family business was established in 1930 by Phil and Sarah Marcus at 32 Main St. in Holyoke, who moved to 109 Main St. in 1942. Back then, it was strictly a fine letterpress printing company, installing its first offset press in 1945.

In 1961, Marcus moved to a 7,000-square-foot space in the former Skinner Mill on Appleton Street. During the next 25 years, it expanded its offset production, purchased the building, and expanded to use all of its 21,000 square feet on three floors. The current location, at 750 Main St., is a 33,000 square-foot facility, all on one floor.

The company’s 30-plus employees pride themselves on customer service, Goldsmith said. “We don’t make promises we can’t keep, and we do everything in our power to get it to you when you need it. And we try to employ as many Holyoke people as we can.”

She’s also proud of her company’s place in the Paper City.

“Holyoke has a great business community, and printing and paper have been at its foundation. We just had a conversation with John Hazen about work our parents did together, and I’m guessing maybe our grandparents. It’s nice to have that long-term connection with the history of what the city is built on.”

—Joseph Bednar

In Holyoke, the Past, Present, and Future Come Together

By
Lynn Gray, general manager of the Holyoke Mall
Features

Pride and Promise

Jim Sullivan

Jim Sullivan says Holyokers, like himself, share a deep sense of pride in their community.

Jim Sullivan says he’s not really sure where it comes from. Like most people from Holyoke, he’s just taken it for granted.

He was referring to the immense pride people take in being from this city and, in a great many cases, still living in it.

“There’s been a lot of change over the years, but what hasn’t changed is the spirit of the people,” said Sullivan, president of the O’Connell Companies, which was started in Holyoke and is almost as old as the city itself (it will mark its own sesquicentennial in six years). “There is a very proud heritage in the city of Holyoke, and it still exists today. Even with the youth today — and I like to spend some time with them at the Boys & Girls Club, where I’m a trustee — you get a sense of pride with the folks that you talk to.”

This pride is something that’s almost palpable as you talk with people from this city, and it was referenced by just about everyone we talked with for this special section — in one way or another.

“There’s a saying … as Holyokers, we can talk bad about Holyoke, but you can’t talk bad about Holyoke,” said Gary Rome, owner of Gary Rome Auto Group, another Holyoke native, and someone with a huge presence in the city. “People here are very committed and passionate about their city.”

Beyond this omnipresent pride, Rome, Sullivan, and other business leaders we spoke with see many other qualities in Holyoke — history, tradition, diversity, economic progress, collaboration, energetic new leadership, new businesses, new business sectors (including cannabis and green energy), and something they’ve always seen: opportunities.

As in opportunities for entrepreneurs, for individuals looking for work or a career, for professionals looking for an affordable place to live, and for people aspiring to work for themselves instead of for someone else.

“There’s a lot of entrepreneurial spirit really coming alive in the city,” said Lynn Gray, general manager of the Holyoke Mall, which opened 44 years ago, changing the landscape in the community in many ways. “And that’s exciting because it benefits the city; it benefits everyone in and around the mall, having that entrepreneurial spirit. Moving forward, it’s a great path to be on.”

Meg Sanders, one of those entrepreneurs — she opened Canna Provisions on Dwight Street, part of a wave of cannabis-related businesses in Holyoke — agreed. She said she sees a great deal of vibrancy and entrepreneurial energy in the city, not just in cannabis, but also in the arts, hospitality, retail, and more.

“There’s a lot happening here — Holyoke is a great city that has so much to offer,” she said, adding that downtown is becoming more vibrant and, with many new types of arts and hospitality businesses opening, becoming much more of a destination.

Matt Bannister, senior vice president of Marketing and Corporate Responsibility at PeoplesBank, another Holyoke institution nearly as old as the city (it was founded by silk-mill owner William Skinner in 1885), concurred.

Steve Grande (left) and his son, Ben

Steve Grande (left) and his son, Ben, have engineered a transformation at Meridian Industrial Group.

He cited Gateway City Arts on Race Street, a live-entertainment venue, as an example of a relatively recent arts-fueled resurgence in the city, one that displays the trickle-down effect of such businesses and their ability to spur more development.

“Gateway is an example of the kind of anchor that you can build around,” he explained. “You get some nightlife, and the next thing you know, you have entrepreneurs and food trucks and all that. What’s happened down at Gateway, and what’s happening on Main Street, is that there’s some nice enthusiasm and energy.

“Overall, there is a good core of solid businesses, and there is a government in place that understands the importance of business development — we have smart people with a good vision,” Bannister went on, adding that the current wave of entrepreneurial energy coupled with large amounts of state and federal stimulus money make this a unique and potentially powerful moment in the city’s history.

For this special 150th-anniversary celebration edition, BusinessWest talked with a number of business owners about what they see today in Holyoke — and what they expect to see down the road.

 

Making Progress

There’s a manhole cover embedded in the floor just inside the main entrance to the property at 529 South East St., near the lower canal in Holyoke.

It bears the name J.W. Jolly, the company that made manhole covers for cities across the country and around the globe at that site more than 140 years ago.

There’s a mat now covering the one in the lobby here because more than a few people tripped over it, said Steve Grande, a former Springfield police officer who bought the business that was operating there, Central Massachusetts Machine, in 2009 and eventually changed the name to Meridian Industrial Group to reflect a broader customer base and product portfolio.

Indeed, this cutting-edge machine shop that he manages with his son, Ben, now specializes in very large parts (up to 30,000 pounds), including components for missiles, submarines, and even NASA’s DART (Double Asteroid Redirection Test) program that famously knocked a meteorite off its orbit a few months back.

Meridian is an example, and there are many of them in this city, where the past, present, and future come together at the same mailing address. And this is one of the many things being celebrated as the city turns 150.

It’s like that at the Canna Provisions facility on Dwight Street, where a dispensary designed to look like an art gallery has been created in an old mill where Yankee Candle once leased space and began its meteoric rise.

It’s like that at the Gary Rome Hyundai dealership on Whiting Farms Road, where a combination car wash and dog wash is taking shape on property that also boasts a solar array and, in his office, pictures of Rome’s father, who started selling cars in Holyoke more than 60 years ago.

It’s like that the O’Connell Companies’ gleaming new headquarters building on Kelly Way, which includes photos of the company’s founder, Daniel J. O’Connell, and his descendants, as well as construction projects undertaken decades ago — specifically the Memorial Bridge reconstruction project and the Rowes Wharf initiative in Boston, that won Build America awards from Associated General Contractors of America.

And it’s like that PeoplesBank’s banking center at 1866 Northampton St., site of the former Yankee Pedlar, a popular restaurant and gathering spot for generations of city residents.

Yes, the past, present, and future come together seamlessly in this city, where change is as constant as tradition.

Lynn Gray, general manager of the Holyoke Mall

Lynn Gray, general manager of the Holyoke Mall, says there a great deal of “entrepreneurial spirit” coming alive in the city.

This change can been seen everywhere — on High Street, where many new businesses have opened in recent years (see related story on page XX); at the mall, where many of the traditional retail stores have been replaced with entertainment-related businesses, such as a trampoline center and a bowling alley; in the countless mills, many of them now occupied by cannabis-related ventures; on Race Street, where Gateway City Arts and other arts- and hospitality-related businesses are now operating; at the historic Cubit Building, now home to apartments and the HCC MGM Culinary Arts Institute, and elsewhere.

What hasn’t changed is the great pride that people take in their city, and the spirit of entrepreneurship that built the community and is fueling its resurgence today. In fact, what business leaders see when they look at the city today is continued progress and revitalization.

Bannister, like others we spoke with, credited Joshua Garcia, the city’s first Hispanic mayor, and Aaron Vega, former state representative and now director of Planning and Economic Development in Holyoke, for creating a business-friendly environment in the city and generating real momentum on several fronts.

“They’re tilling a lot of soil in order to make things happen,” Bannister said. “When you throw a lot of seeds out, you’re never sure which ones are going to take and which ones aren’t, but you’re creating opportunities for things to happen.”

 

No Place Like Home

Those we spoke with said they consider it important not to just do business in Holyoke, but to be actively involved in the community and especially with efforts involving the next generations of Holyoke leaders.

Rome said his family has been doing business in Holyoke for almost a century. His grandfather started with a drugstore, he believes, and then opened a haberdashery. As Rome tells the story, money was so tight that his grandfather’s store and the neighboring shoe store would share a telephone.

Matt Bannister

Matt Bannister credits Holyoke Mayor Joshua Garcia and his administration for creating a business-friendly environment and fueling a surge in entrepreneurship.

“They had a hole in the wall, and they would pass the telephone back and forth through the wall,” he said, adding that things have certainly changed, for both his family and the city. What hasn’t changed is the family’s commitment to the city.

Indeed, Rome, was recently named one of BusinessWest’s Difference Makers for 2023, not only for his success in business — he was recently named TIME magazine’s Dealer of the Year — but for his work within the community, and especially Holyoke. He is a member of the foundation board at Holyoke Community College, and has donated his time, energy, and talent to countless nonprofits, while getting his company involved with them as well.

“When I look at Holyoke today, I see a lot of hope, a lot of passion,” he said. “And I see a strong initiative to let people know about all the good things that are happening in the city, and you can see that first-hand with our mayor and our economic-development team.”

Sullivan, who has been involved with the Boys & Girls Club for more than a decade now, said O’Connell supports a number of organizations and initiatives, from Girls Inc., which found a new home in the O’Connell Companies’ former headquarters on Hampden Street, to Providence Ministries for the Needy.

Gary Rome

Gary Rome, one of BusinessWest’s Difference Makers for 2023, is one of many Holyoke business leaders actively involved in the community.

PeoplesBank, meanwhile, has always been heavily involved in the community — supporting its nonprofits, being the main sponsor to the city’s famous St. Patrick’s Day Parade, and backing the many efforts at EforAll, the chamber, and other agencies to promote entrepreneurship and help others launch their own ventures, a key to the city’s continued progress.

“There’s an awful lot bubbling up,” Bannister said. “You have to wait and see which ones take root and which ones don’t, but we work with the Holyoke EforAll group to drive entrepreneurship because that’s how the next generation of businesses will come up; it won’t be a giant company that you lure here with tax incentives — it will be a whole lot of small businesses that will take off. It’s entrepreneurs at the street level that will drive growth.”

Even some of the relative newcomers to the scene in Holyoke said they realized early on the importance of getting involved, collaborating with others to generate more positive energy in the city, or just choosing the city as a landing spot.

Indeed, Sanders said there were many reasons why Canna Provisions put down roots in Holyoke, literally. Business-friendly bylaws and attractive space were among them, but there was also a desire to positively impact a city that was negatively impacted by the war against drugs and has, as she put it, “such good bones.”

“For us, Holyoke was a perfect canvas to do good,” she explained, adding that, in addition to bringing jobs and a new storefront to the city, the venture is also sparking other new business. Meanwhile, Sanders herself is getting involved with several initiatives, from the 150th-anniversary celebrations to the parade committee.

“Holyoke is an amazing city with so much potential, and bringing awareness to downtown and making sure everyone knows about all the cool things that are happening is very important,” she said. “Downtowns don’t turn around overnight, but it’s helpful if a community gets behind it — we see things turn around faster when everyone gets behind those efforts.”

Grande agreed, noting that he’s seeing progress in the community and is getting involved himself, with everything from workforce-development issues in manufacturing (he’s involved at Dean Tech and, specifically, an ongoing project to market its manufacturing programs) to his work as vice president of the Holyoke Taxpayers Assoc.

“I don’t want to sit on the sidelines and let other people do the heavy lifting,” he said. “We see improvements and excitement; this administration is bringing city officials together, and the real push from the business community is to make the city more attractive to potential new businesses by streamlining the permitting process, addressing crime, and much more. There’s an upward trajectory, but Holyoke has not been an easy sell.”

 

Passion Play

Flashing back more than a half-century to his youth, Sullivan said he and his friends thought Holyoke was “the center of the universe.”

It was only when they got older that their perspective changed — but only somewhat.

For many, it’s still the center of their lives, if not the universe, and the home of their businesses. It’s a unique and special place where the past, even the events of 150 years ago, are never far away and the future seems increasingly bright.

Holyoke Then and Now

By
Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’
Features Picture This

Photos Past and Present

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Old Holyoke Dam

Mountain Park

A view of Mountain Park, the popular amusement park that closed its doors in 1987.

 

Holyoke’s canals gave the city water power — and an identity.

Holyoke’s canals gave the city water power — and an identity.

 

City Hall has become a symbol of Holyoke.

City Hall has become a symbol of Holyoke.

 

One of the horses from the carousel

One of the horses from the carousel at Mountain Park, later moved to Heritage State Park, where it has become a popular attraction.

 

An aerial shot of Holyoke, one of its canals

An aerial shot of Holyoke, one of its canals, and one of its many distinctive mills.

 

The Massachusetts Green High Performance Computing Center

The Massachusetts Green High Performance Computing Center is part of a new era for Holyoke’s business community.

 

This mural created by the artist known as BORDALO II

This mural at 44 Clemente St., created by the artist known as BORDALO II, is part of the Beyond Walls initiative that has changed the landscape in downtown Holyoke and beyond.

 

Holyoke Sees Surge in Entrepreneurship, Business Diversity

By
Brothers Juan (left) and Gilberto Uribe
Features

Getting Down to Business

Brothers Juan (left) and Gilberto Uribe

Brothers Juan (left) and Gilberto Uribe are co-owners of El Paraiso Colombiano restaurant, a true family affair that has found a home on High Street.

Juan Uribe calls it a “family dream.”

He was referring to El Paraiso Colombiano restaurant, an entrepreneurial gambit that is truly a family affair.

Indeed, Juan and his brother, Gilberto, are co-owners and also cook and tend bar. Their father is head chef, and their sister is a waitress. Together, they created and now operate what they believe to be the only Colombian restaurant between here and Hartford, one that opened in the middle of the pandemic, but quickly found its stride nonetheless.

“On grand-opening day, there was a line outside to the corner,” said Juan, adding that, while there have been plenty of challenges with this venture, it has been a huge success to date, drawing patrons from around the block but also across the region and even beyond. “We thought people would come out and support something new, and they have.”

Juan, Gilberto, and other members of the Uribe family are now part of a changing scene on High Street, one of several ‘main’ streets in this city, and also part of an ongoing surge in entrepreneurship that is changing the face of the local business community.

Indeed, where once this city was dominated by large mills that covered several blocks of real estate, it is now marked increasingly by smaller ventures that occupy a storefront or even a desk or cubicle in the incubator space at the EforAll offices, also on High Street.

Jeff Cattell and Joseph Charles are also part of this changing scene. Business and life partners, they launched Paper City Fabrics, a supplier of a wide variety of fine fabrics, in September 2021, and have taken it from an online operation to a storefront on High Street that was most recently home to a law firm. They are completing renovations now and expect to open in the spring.

“Our goal has always been to open a brick-and-mortar storefront,” said Cattell, adding that he and Charles moved to the city four years ago and, after considering several business options, settled on a thrift-store model in what he called the “fiber-arts realm.”

Elaborating, he said the store will accept donations of fabric, everything from cotton to silk, as well as sewing machines and other goods and equipment, and sell them at steep discounts, thus bringing another unique concept to downtown Holyoke and one that speaks to its storied past in many respects.

Paper City Fabrics, El Paraiso Colombiano, and many other new businesses on High Street and beyond, from City Sports Bar to the Artery, a pop-up shop, to Star Dancers Unity (see story on page 50), are, indeed, part of a wave of entrepreneurship in the city, said Jordan Hart, executive director of the Greater Holyoke Chamber of Commerce.

“There’s a lot of old players in Holyoke — there are many established businesses in many sectors, including manufacturing, which has traditionally been our foundation,” she explained. “But we’re seeing a lot of young, new faces as well, people who are investing in our downtown.”

Tessa Murphy-Romboletti, executive director of EforAll Holyoke and its Spanish equivalent, EparaTodos — an agency that is fueling this wave through accelerator programs, pitch contests, virtual workshops, co-working space, and more — agreed.

She said that the chamber, EforAll, and programs like the Transformative District Initiative, which are funneling dollars into storefront-improvement efforts and other programs, are helping people launch new businesses and then weather the many challenges they will face.

Tessa Murphy-Romboletti (left) and Jordan Hart

Tessa Murphy-Romboletti (left) and Jordan Hart say a surge in entrepreneurship has helped Holyoke’s business community become as diverse as the city itself.

These efforts are also making Holyoke’s business community much more diverse, said both Jordan and Murphy-Romboletti, noting that it looks much like the city itself, with many Hispanics and other minority groups taking on risks and putting their names (figuratively and, in some cases, literally) over the door of buildings on High Street and many other roads.

“Holyoke is such a diverse community, and I think we’re both trying to make sure that our business community reflects our community at large,” said Murphy-Romboletti, who is also an at-large city councilor in Holyoke. “That’s one of the great things about the Holyoke chamber now — you go to one of its monthly networking events, and it looks like the community of Holyoke; it’s very diverse, and Jordan has created a very welcoming environment.”

 

Food for Thought

Juan Uribe was driving a truck when he and other members of his family decided to pool their talents and resources and open El Paraiso Colombiano.

And he still drives a truck in the morning and sometimes during the day depending on how business it is at the restaurant, because … well, because he needs two jobs at this stage in his life, especially as the restaurant continues to emerge and build its brand.

But, like other members of his family, Uribe desired to be in business for himself, and with some encouragement and learning while doing from EforAll, the dream became a reality.

Like many such ventures, it started with a passion that would become a business.

“We were born and raised here in Holyoke, and friends would come around; we’d have little events — my grandmother would make empanadas, and my father would cook, my mother would cook, everyone would just love to be in our house,” he recalled. “So we decided to make it a business; we all love to cook, and this is a family business.”

A restaurant operating at 351 High St. had to shut down because of COVID, he went on, adding that, while the timing may not have been perfect for launching a new eatery, the family took the plunge.

Joseph Charles, left, and Jeff Cattell

Joseph Charles, left, and Jeff Cattell, owners of Paper City Fabrics, are part of a changing scene on High Street.
Staff Photos

“We knew we had a good idea going, so we decided to take everything we had and move ahead,” he said. “We knew that, even though there was a pandemic, people still had to eat, and we thought they would come out and support something new.”

That’s the quick version of the story, he said, adding that many pieces to the puzzle had to come together, obviously, as well as a business plan for bringing that ‘something new’ — authentic Colombian cuisine — to Holyoke and the region.

And the learning while doing continues, he said, adding that working for himself is “a lot of work, but it’s something that I love, something that my brother loves. It’s challenging, and it’s hard, but it doesn’t get any better than this.”

Cattell and Charles offered similar sentiments and similar excitement when it comes to being part of the scene on High Street, which is the logical next step for their venture.

“Shopping for fabric is a tactile experience,” Charles said. “Touching and seeing the colors in person and the textures of the fabric is an important part of the buying process.”

The two had been looking for a storefront for more than a year and eventually settled on 330 High St., across the road from El Paraiso Colombiano, a location that affords them the space they need for their retail operation as well as to process donations and create a classroom for sewing lessons. The space has some history — it was once a popular lunch counter — and some intriguing features, such as tin ceilings and a mosaic tile floor that was hidden by carpeting.

“It’s really cool to be able to restore some of that historical perspective,” said Cattell, adding that it’s also cool to be part of a changing dynamic in downtown Holyoke, which is seeing new businesses across many sectors.

Meanwhile, the chamber, EforAll, and other agencies, such as Nuestras Raices, a grassroots urban-agriculture organization, are working collectively to not only create a pipeline of new businesses like these, but help those businesses survive, thrive, and get to the proverbial next level.

For example, EforAll has, in addition to accelerator programs, a number of virtual programs it calls Deep Dives.

In recent months, such dives have been taken into subjects ranging from “Making It in the Food Business” to “Are You Getting All You Can Out of QuickBooks?” to “How to Use LinkedIn to Grow Your Small Business.”

Meanwhile, the chamber, through its many networking programs, is enabling these new small businesses to make the connections they need to grow their portfolios, while also learning from others facing the same challenges.

Indeed, Jordan told BusinessWest that the chamber has an attractive rate for solopreneurs and small businesses, enabling these ventures to be part of a full slate of events that provide invaluable opportunities to not only hand out business cards but also be an active part of a growing, more diverse business community.

Murphy-Romboletti agreed.

“The chamber has created a very welcoming environment, especially for my entrepreneurs who are not familiar with networking and are often so focused on being in the business and not necessarily working on the business,” she explained. “I think the chamber creates this environment where people can step away from the cash register or step away from the kitchen and connect with the community and build those relationships so they can be successful and really be part of the community; that’s been really valuable.”

In addition to helping individuals start a business and move it to the next level, agencies like the chamber and EforAll are working to get them involved in the community and take ownership of efforts to revitalize High Street and, overall, improve the landscape for business in the city.

“Whether it’s a new business or a business that’s been around for decades, we want them to feel like they have the ability to make change and advocate for what they want,” Murphy-Romboletti said. “We’re really being intentional about creating these spaces for them.”

Uribe said that getting involved in the community has been not just part of the business plan, but something important for the family.

Indeed, they are part of the many festivals that place in the city, and Uribe is the founder of the Paper City Food Festival, which staged its second edition last fall on the section of High Street between Appleton and Dwight streets, attracting more than 20 of the city’s restaurants.

“It’s a way for people to come out and see all that this city has to offer,” he told BusinessWest, adding that he engaged the chamber and started the festival to uplift local businesses and celebrate the community’s heritage and diversity.

 

Bottom Line

There was much to celebrate at last October’s food festival, and, similarly, there is much to celebrate with this city’s business community as it turns 150.

There is diversity. There is change. There is vibrancy. And, overall, there is a wider pipeline of new businesses, entrepreneurs like the Uribe family and Jeff Cattell and Joseph Charles.

Together, they are not just filling storefronts on High Street. They are energizing a city and writing an intriguing new chapter in its long and distinguished business history.

 

Holyoke Has a History of Facing Challenge, Creating Opportunity

By
Mayor Joshua Garcia
Features

A Portrait of Resilience

Mayor Joshua Garcia

Mayor Joshua Garcia says Holyokers need to take the long view when it comes to their city and its future.

As he talked about his city and its outlook moving forward, Holyoke Mayor Joshua Garcia first turned the clock back nearly 150 years and did what amounts to a ‘what if?’ exercise.

He was referring to Holyoke’s ubiquitous canals, which were, when they were conceived, no small bit of engineering — and financial — daring.

“It was a risk,” said Garcia, the city’s first Hispanic mayor, who took office in late 2021. “When folks built the canal system … I think about what that conversation might have been like, the divide that might have been going on in this community. You had some who probably said, ‘yes, we need to be proactive and build this system,’ and others who likely said, ‘this is too much money; our taxes are going to go up if we do that, and besides, I’ll be gone in 30 years.’”

Fortunately, those in that first category prevailed, he went on, adding that the canals helped fuel decades of prosperity, jobs, and an enviable quality of life, and they put the city on the map. And as he looks ahead, Garcia believes Holyokers must have that same willingness to take reasonable risks — to be daring, if that’s the right word — and make the necessary investments to continue, and bring to a higher level, an ongoing renaissance in a city that was among the nation’s wealthiest and a model of innovation and manufacturing excellence.

“I’m trying to get people to not think short-term — the investments we make today are not just for next month or next year, but 20 to 30 years out,” he said. “We want to build a middle school, for example, something that would benefit this city for generations to come.”

Long-term thinking is one of necessary ingredients for continued progress in this city, said Garcia and many others we spoke with for this special section commemorating Holyoke’s 150th anniversary. Overall, they said many of the other needed ingredients are already in place, everything from a focus on entrepreneurship to inexpensive and reliable green energy; from a solid, diverse workforce to spaces in which new businesses can get started and eventually grow.

Jeff Hayden, currently vice president of Business and Community Services at Holyoke Community College, previously served in several economic-development posts in the city, including as director of Planning and Economic Development. Nearly a half-century ago, he worked part-time at a Dairy Mart on Dwight Street managed by his father.

He has seen a lot of change over that half-century, and, more recently, a good deal of progress as Holyoke has diversified a business community once dominated by manufacturing, especially paper and textile making.

In the ’90s, manufacturing was still a pillar of the local economy, along with healthcare — there are several facilities providing everything from acute care to behavioral-health services to care to veterans, he noted, adding that, in recent years, diversification has included more retail (the city already boasts the Holyoke Mall), cannabis businesses, and strong growth in the arts and entertainment sectors.

And this diversification has strengthened the economy and made it more resilient, he said, adding that current efforts have been focused on creating opportunities across the board — meaning both jobs and opening the door to entrepreneurship.

Holyoke’s St. Patrick’s Day Parade

Holyoke’s St. Patrick’s Day Parade, this year celebrating its 70th edition, is a great tradition for the city and the many organizations, schools, and clubs that march.

“When I look at where Holyoke is today and where it’s going, it’s clear that its leaders are focused on providing economic opportunity for all, whether they be entrepreneurs who perhaps identify as Latinx or established businesses that have been here for a long time,” he said. “The hope is to help everyone grow, and grow together.”

Aaron Vega, the former state representative who is now serving as director of Planning and Economic Development, agreed.

“Like a lot of cities, we’re at a crossroads,” he said, noting that, while manufacturing has declined in recent years and decades, other sectors have emerged, such as cannabis, IT, and clean energy. One of the keys moving forward, said Vega and many others we spoke with, is that focus on entrepreneurship and helping new small businesses take root, in some cases literally.

“It’s very hard these days to start a small business, but we have a lot of supports for that, like EforAll and the chambers, and people now realize, especially here in Western Mass., that it’s the downtown businesses that create the character in a community,” he said. “So we’re really trying to focus on that; we’re really trying to empower people who live here already to open up their own business.”

 

Something to Celebrate

Like many others we spoke with for this special section, Garcia said the 150th anniversary is a time of reflection, an opportunity to look back at the city’s proud history and ahead to what the next chapters might be.

It’s also an opportunity to celebrate all that Holyoke is — a proud city with a rich history, rich traditions, a diverse population, a legacy of innovation, and other enviable qualities, he said, noting that perhaps the greatest of these is resilience.

Indeed, the city has always displayed the ability to withstand adversity and move on — whether it was the many challenges of becoming the nation’s first planned industrial city or reinventing itself and diversifying its economy when much of the manufacturing moved south or overseas, or, most recently, persevering through the COVID pandemic and its many side effects.

“It’s a celebration of resiliency,” he said, adding that the city will mark the occasion in a number of ways, including a gala, an ‘Eat, Drink, and Be Holyoke’ event, a time capsule that will be placed in City Hall and opened at the 200th anniversary, ‘150th’ merchandise (hats, key chains, etc.), commemorative beers made by local brewers, and much more. “It’s a celebration of everything Holyoke.”

Vega agreed, and noted that one of the driving forces behind the city’s ongoing resurgence is a focus on the arts and culture. He cited businesses such as Gateway City Arts, a live-performance venue, and organizations such as Beyond Walls, which partnered with Nueva Esperanza Inc., a community-development and social-services agency, to honor Holyoke’s designation as a Puerto Rican Cultural District, as well as the city’s rich history and diversity, with the installation of five large-scale outdoor murals.

“When you celebrate culture, people feel more connected to their community, more connected to their neighbors,” he explained. “And when you have the ability to celebrate art, it’s about bringing people into your community, with initiatives like Beyond Walls, the events at Wistariahurst, Gateway City Arts — it’s a celebration of music and arts that invites everyone to come join.”

Aaron Vega

Aaron Vega says Holyoke has many outstanding traits, especially its long history of resilience.
Staff Photo

Beyond the arts, Holyoke is seeing a surge in new businesses on High Street; a strong wave of cannabis businesses of all kinds, including large cultivation facilities; and an influx of data centers, including the Massachusetts Green High Performance Computing Center. And in many cases, the city’s ability to provide lower-cost, green energy is a big reason why many of those businesses found Holyoke.

“Anyone who is looking for cheap electricity and green energy will knock on our door — we’re the first call they’ll make,” said Jim Lavelle, general manager of Holyoke Gas & Electric (HG&E), which can trace its roots to 1902. “It’s an interesting time, to be sure, and we’re getting a lot of inquiries; people like the story of the low-carbon, cheap electricity.”

Interest is across the board, he said, adding that it comes from data centers and cannabis cultivators (both huge consumers of electricity), but also from business owners who want to minimize their carbon footprint, he said, adding that HG&E is working with city officials to help make the most of this asset and many others the city can boast.

Another asset is Holyoke Community College, said Hayden, adding that, historically, significant numbers of city residents have been unable to take full advantage of the employment opportunities in the city because they were qualified for those jobs.

The college has long worked to change that equation through programs that will ready individuals for jobs, be they as nurses, medical assistants, chefs, or, most recently, workers in the cannabis industry. HCC also has a strong track record of students transferring students to four-year institutions.

“I like to say that we help people get a job, get a better job, or help them do their job better,” he said.

 

Traditions Old and New

Getting back to those planned celebrations … the 150th will be just one of a growing number of events in Holyoke this year, said the mayor, noting everything from the famous St. Patrick’s Day Parade later this month to the Fiestas Patronales, which debuted last August — a four-day celebration of the city and region’s Puerto Rican culture and heritage and billed as the largest Latino event in Western Mass.

Jeff Hayden

Jeff Hayden says Holyoke has diversified its business community, strengthening it in the process.

These celebrations, old and new, capture the city’s past, present, and future, he said, adding that they reflect the city, its history, and especially its people.

That’s especially true of the St. Patrick’s Day Parade, which this year will mark its 70th edition, said Karen Casey, president of this year’s event. The 69th parade was three years in the making because of COVID, she said, a tiring, very frustrating experience on many levels.

What the pandemic years did was make those in Holyoke and beyond — this is, after all, a regional event — appreciate the tradition even more, if that’s possible.

“After having gone through what we all went through a few years ago, you saw just how much this meant to everyone,” she explained, referring to everyone from parade committee members to those who watch each year along the parade route. “Everyone just has a greater appreciation for how important this is.

“This is the third-oldest parade in the country, and we work very hard to maintain high standards,” she went on. “Anyone from around Holyoke is very proud of it; they brag about it … it’s a great tradition.”

While the buildup to the St. Patrick’s Day Parade continues, so too does planning for the 150th anniversary, said the mayor, adding that one of the intriguing tasks — and big challenges — ahead is deciding what should go in the time capsule.

Organizers are already thinking about items like one of the Super Bowl programs created by Hazen Paper, a Holyoke High School yearbook, T-shirts, a history of the city, and much more. It may take the shape of a volleyball with a large box inside.

The task of deciding what goes in the limited space in the time capsule is made more complicated by the many aspects of the city’s history and the many objects — recent and more than a century old — needed to tell the story. In many ways, it’s a good problem to have.

But getting back to that matter of resiliency, Vega said that trait is at the heart of the 150th celebration. And it is one shared by the community and the people who have lived here over the past few centuries.

“People talk about Boston Strong in the wake of the marathon bombing, but there’s also Holyoke Strong; it’s about resiliency, and it’s about history,” he said. “People have always come to Holyoke who have been migrants and have had nothing — and they built a life here. That’s what we need to keep remembering. This has always been a place where people come, get that grit, and find a path.

“This is what we’re celebrating as the city turns 150,” he went on, adding, again, that there is so much to celebrate.

City Hall’s Dedication Is Long Overdue

By Contributor
Features

Holyoke’s 150th

By Penni Martorell

Happy anniversary, Holyoke! 2023 is the sesquicentennial, or more commonly called the 150th anniversary of the incorporation of the city. It is our good fortune that we, the citizens of Holyoke, will, at long last, will hold an official dedication ceremony for Holyoke’s City Hall, a structure that is not only of notable architecture, but also a fundamental component of Holyoke’s past, present, and future and the foundation of our community.

In a July 1876 article, the Holyoke Transcript reported:

“There ought to be public spirit enough in this city to appropriately dedicate this noble building. There seems to be a small faction opposed to it, but they should not be allowed to present a fitting dedication by those whose money has been spent in the construction of the finest hall in New England.”

That’s right, Holyoke City Hall was never dedicated upon its completion. Apparently, that small faction held out, and other circumstances derailed the building’s official dedication. So, it is only appropriate that we take time now to dedicate this magnificent building as it has stood in service to Holyoke for a century and a half. The official dedication will take place on Thursday, April 6.

Most of the story about City Hall is documented in Holyoke Annual Reports and a lengthy, detailed, unsigned article in the Saturday morning edition of the July 1, 1876 Holyoke Transcript. And as history so often reveals itself in layers, there are likely many more stories about the building. So here is some background information and details about the construction.

The total financial outlay to build this magnificent building, when all was said and done, was $372,000 in 1876. (Additional research done by the Historical Commission indicates that final cost was closer to $500,000 at the time.) In any case, in today’s money, that would be more than $10 million.

The town of Holyoke was established by an act of Massachusetts Congress Chapter 71 and signed into law On March 14, 1850 by Gov. George Nixon Briggs. The town’s first board meetings were held in rented meeting halls like Chapin Hall, Parsons Hall, and the Exchange Hall. A separate selectmen’s office was rented starting in 1861. The largest financial challenges for the town at that time were fees to West Springfield in relation to the contract of separation.

Constructing a building of this size and character was not an easy task, nor was it inexpensive. Delays and contractual issues increased the amount of time and money it took to complete this monumental undertaking. Unfortunately, division arose early on deciding where the building should be located. More delays arose during the building of City Hall and were memorialized in Holyoke’s Building Committee reports.

Fortunately, the city’s incorporation in 1873 brought about the reorganization of elected officials and, most importantly, new Building Committee members who acted quickly and effectively to get the construction work back on track … but it wasn’t a smooth process.

In October 1874, the new Building Committee contracted H.F. Kilburn of New York to serve as architect under the supervision of Watson Ely of Holyoke. In order to facilitate the completion of the building in a timely manner, Ely ordered that everyone that had moved into the unfinished building vacate the building and then closed City Hall during the winter of 1874.

Charles Attwood was the original architect who created the Gothic Revival and Romanesque Revival structural plan in 1871. However, many others contributed structural and decorative details, including local builder Casper Ranger, John Delaney, Ecclesiastical Stained Glass Works, Watson Ely, Henry Kilburn, Kronenberger and Sons, Filippo Santoro, Serpentino Stained Glass, and Samuel West.

Beyond the granite exterior walls, stone steps and pavers, and slate roof, other building materials include random ashlar, galvanized iron, glass, lead, marble, wood, brick, sheet metal, and copper.

One of the most important historical and stately features of Holyoke City Hall is the looming clock and bell tower. The imperial tower stands 225 feet high and houses a bell that weighs nearly 5,000 pounds. The clock’s face is composed of two-inch-thick Belgium milk glass. Sadly, the clock was inoperable and the bell was silent for decades. Thanks to Friends of City Hall, David Cotton, and a team of volunteers, the clock was restored after completing hundreds of hours of repairs, and on July 4, 2018, the clock was lit up and began keeping time again after almost 30 years.

But back to City Hall itself. As of July 1876, it had not been dedicated, and research has not found any indication it was ever dedicated. It’s time to remedy that.

 

Penni Martorell is Holyoke’s city historian and curator at Wistariahurst.

Holyoke’s History Is One of Adaptation, Evolution, and Water

By
Features

Going with the Flow

By Joseph Bednar

bednar@ BusinessWest.com

Old Holyoke Dam

The city of Holyoke’s website details a series of telegrams sent by one James Mills on Nov. 6, 1848 to a group of industrialists in Boston who had invested in the first dam at South Hadley Falls and were eager to hear of its performance.

“The gates were closed and the water filling behind the dam,” Mills reported at 10 a.m. It would be his only happy missive.

Noon: “Dam leaking badly.”

1 p.m.: “Leaks cannot be stopped.”

2 p.m.: “Bulkheads are giving way.”

3:20 p.m.: “Dam gone to hell by way of Willimansett.”

So, it wasn’t the most auspicious way to begin Holyoke’s new direction as a planned industrial city that harnessed the power of the Connecticut River.

But the builders learned from their mistakes — and built a replacement dam. Like the first, it was also made of wood and completed the following summer. This dam still stands, 150 feet underwater, behind the current, modern stone dam that was put into service in 1900.

This bit of history is just one example of Holyoke not only overcoming challenges, but evolving with them along a winding, intriguing, still-evolving story.

The story actually begins much earlier, with the Indigenous tribes who settled there on the rich, alluvial plain, including the Nonotucks, from whom early European settlers eventually purchased the land that would be incorporated into the future boundaries of Holyoke.

Captain Elizur Holyoke is believed to be the first European to explore the future city. In 1633, he led an expedition up the Connecticut River to explore the potential for settlement. Two years later, based upon his report, European agriculture settlement began in the region. Initially concentrated in Springfield, settlers soon began to migrate to the surrounding areas that would later become West Springfield, Chicopee, and Holyoke. Holyoke was then known as Ireland Parish, a name that would remain in common use until 1850.

When Boston investors saw in the parish industrial potential similar to Lawrence and Lowell — and the energy potential of the river — they set out to create an industrial city on a large scale.

In 1847, taking advantage of the broad plain and the 57-foot drop in the Connecticut River at South Hadley Falls, work began on the planned industrial city. Canals, mills, boarding houses, offices, and a dam were all built by pick and shovel. And on March 4, 1850, Holyoke — with its working dam — was finally separated from West Springfield and designated its own town.

“There was some resistance from the farmers who initially didn’t want to sell their land,” said Penni Martorell, Holyoke’s city historian and curator of Wistariahurst. “But eventually [the investors] won out. They just bought the land and then laid out the plan for the city. The flats area was definitely the working man’s area. The middle area around the canals was where the factories were built, and then the highlands were set aside for retail businesses and homes of the wealthier families.”

 

Strength in Paper

Before the planned-city idea got rolling, Holyoke was mainly an agricultural community with a sprinkling of industry, including a lumber mill on the river.

“The investors had had success in Lawrence, in getting mills set up along the river up there. And then they were like, ‘well, where else can we go?’” Martorell told BusinessWest. “Lawrence and Lowell often lay claim to being the first planned industrial cities. We say they worked it out there, and then they perfected it here in Holyoke. They really took advantage of the 60-foot drop in the river, how to harness that energy and then send it through the canals.”

Holyoke’s development was rapid, with its population surging from about 3,200 in 1850 to 45,000 by the turn of the century and more than 60,000 at its peak in the early 1920s. Textiles were the first major product of the city, quickly followed by paper, which became the dominant force in the city. At one time, more than 25 paper mills were in operation.

By 1885, 12 years after its official designation as a city, Holyoke was the largest single producer of paper of any city in the U.S., producing around 190 tons per day, more than double the next-largest producer, Philadelphia, which produced 69 tons per day despite having a population nearly 40 times its size. By 1900, Holyoke would produce about 320 tons per day, predominantly writing paper, led by American Pad & Paper Co., American Writing Paper Co., and others.

Holyoke also built schools, churches, parks, and many public buildings, including the historic City Hall (see story on page 28). By the turn of the century, Holyoke exerted considerable influence on American life. The Holyoke Opera House was the test location for Broadway plays before moving on to New York. The Easter parade here drew as many spectators as on Fifth Avenue.

A number of industrial inventions arose out of the city in the late 19th and early 20th centuries. The first and most prominent hydraulic testing lab in the U.S., Holyoke Testing Flume, performed 3,176 tests to establish turbine efficiency from 1870 to 1932. Other pioneering developments included the first use of Hans Goldschmidt’s exothermic welding process in the Americas in 1904, by George Pellissier and the Holyoke Street Railway. In electronics, the world’s first commercial toll line, between the city’s Hotel Jess and a location in Springfield, entered service in 1878. Holyoke was also home to Thaddeus Cahill’s New England Electric Music Co., which, in 1906, demonstrated the telharmonium, the world’s first electromechanical instrument, a predecessor of the synthesizer.

Meanwhile, the availability of water power enabled Holyoke to support its own electric utility company and maintain it independently of America’s major regional utilities. The city was thus a rare unaffected area in the Northeast blackout of 1965.

But the city’s second century has been a complicated story, Martorell said.

“It was boom and bust. So every time there was a bust, the wealthier people were able to prepare for that. But the lower-income people were not able to prepare. They would move on to wherever there was work. So it was a bit of transience at certain points. The paper industry kind of morphed into other industrial spaces.”

 

Northern Migration

Beginning at the end of World War II, the city’s demographics began to change, as an influx of Puerto Ricans and other Latino groups began to migrate to the Northeast U.S., driven largely by the Farm Labor Program initiated by the U.S. Department of Labor, which recruited Puerto Rican laborers to work on agricultural land; in the case of Holyoke, many worked on tobacco farms and arrived in the city in search of better job opportunities at the mills, as previous generations had.

“In Springfield and Holyoke, housing was inexpensive, you had access to 91 and 95, and a lot of them had an agricultural background and were looking for farm work,” Martorell said of the Puerto Rican influx. “So between Hatfield and the tobacco fields along the Connecticut River, they were able to find work pretty quickly once they got here.”

By 1970, the number of Puerto Rican residents numbered around 5,000; however, by that time, many faced a city economy that was struggling. Holyoke’s mills had closed due to the changing economic landscape of early globalization and deindustrialization; from 1955 to 1970, half of all industrial jobs vanished. Despite economic and social difficulties, however, the population grew significantly, and today Latinos form the city’s largest minority group, with the largest Puerto Rican population per capita of any American city outside Puerto Rico proper, at 44.7%.

As for those old industrial buildings, their use is evolving.

“The Skinners, who made silk, sold their company to Indian Head Mills, which was a conglomerate going around buying up textile mills in the late 1950s or early 1960s. They bought the company and then shut it down a few years later,” Martorell said. “And many of the other paper companies had already gone out. Parsons Paper was the first paper company in Holyoke, and they closed their doors in 2005. So that was a pretty good run.”

A few specialty paper and printing companies remain, but today, many of the old mills along the canals are being repurposed, from cannabis cultivation, manufacturing, and retail operations to the entertainment venue known as Gateway City Arts.

Martorell said change has been a constant in Holyoke, but so has a feeling of promise.

“People in Holyoke love Holyoke. People are committed to being here, and they want to see good things happen for the city,” she told BusinessWest. “And I think the last two mayors have really tried to make an effort to rebrand the city in a more positive way and say that the challenges that we’ve had in the past have made us stronger and more diverse. So we embrace that and celebrate that.”

 

Some information for this article was adapted from the city of Holyoke’s written history and from Wikipedia.

EEOC Releases New Guidance on Hearing Disabilities

By Contributor
Law

Sound Advice

 

By Trevor Brice, Esq.

 

Trevor Brice

Trevor Brice

On Jan. 24, the Equal Employment Opportunity Commission (EEOC) released new guidance for employers on how and when to accommodate applicants and employees with hearing disabilities.

The guidance covers when an employer may ask an applicant or employee questions about a hearing condition and how it should treat voluntary disclosures of a condition, what types of reasonable accommodations applicants or employees with hearing disabilities may need, how an employer should handle safety concerns about applicants and employees with hearing disabilities, and how an employer can ensure that no employee is harassed because of a hearing disability or any other disability.

This guidance is an update to the original guidance that the EEOC released regarding accommodations for deafness and hearing disabilities in the workplace on May 7, 2014.

 

Questioning Employees and Applicants on Hearing Disabilities

In general, before offering an individual a job, avoid asking the applicant about hearing disabilities or any disabilities or requiring an applicant to have a medical examination before a conditional job offer. However, the limited exception to this general rule is if an applicant has an obvious impairment or has voluntarily disclosed an impairment, and the employer reasonably believes that the applicant will require an accommodation to complete the application process or to perform the job because of the condition.

If this is the case, the employer may ask if the applicant will need an accommodation and what type. However, as a best practice in the pre-offer stage, it is prudent for an employer to stick to questions about the applicant’s ability to perform the position’s essential functions, with or without reasonable accommodation, such as whether the applicant can respond quickly to instructions in a noisy, fast-paced work environment.

After making a conditional job offer, an employer may ask questions about the applicant’s health (including questions about an applicant’s disability, including deafness and hearing disabilities) and may require a medical examination as long as all applicants for the same type of job are subjected to the same requirement.

For current employees, an employer may ask disability-related questions or require an employee to have a medical examination when the employer knows about a particular employee’s medical condition, has observed performance problems, and reasonably believes that the performance problems are related to a medical condition. However, the EEOC notes that employers should take precautions in this situation, as performance problems often are unrelated to a medical condition, and the problems should be handled in accordance with the employer’s existing policies regarding performance.

Regarding hearing conditions for current employees, an employer also may ask an employee about a hearing condition when it has a reasonable belief that the employee will be unable to safely perform the essential functions of the job because of it. Further, an employer may ask an employee about their hearing to the extent necessary to support the employee’s request for accommodations, to enable the employee to participate in a voluntary wellness program, or to verify the employee’s use of sick leave related to a hearing condition if the employer requires all employees to submit a doctor’s note to justify their use of sick leave.

 

Possible Accommodations and Safety-Related Exclusions

The EEOC suggests several reasonable accommodations that could be suggested or employed for hearing-disabled individuals. This non-exhaustive list includes a sign-language interpreter for use in interviews or during employment, assistive technology (including video relay or video remote interpreting services, hearing-aid-compatible telephone headsets, etc.), appropriate written memos and notes, note-taking assistance, work-area adjustments (moving a desk away from a noisy area, for example), time off, altering non-essential job functions, and reassignment to a vacant position.

Employers should remember that there is no magic word for requesting a reasonable accommodation; an individual simply has to tell the employer that he or she needs an adjustment or change at work because of an impairment. Employers do not have to provide reasonable accommodations if doing so would be an undue hardship, meaning that providing reasonable accommodation would result in significant difficulty or expense. Additionally, employers do not have to eliminate an essential function of a job, tolerate poor performance, or excuse violations of conduct to provide reasonable accommodations.

There is another consideration for employees with hearing disabilities. Employers may also exclude an individual with a hearing disability from a job for safety reasons when the individual poses a direct threat, which is defined as a significant risk of substantial harm to the individual or others because of a disability that cannot be eliminated or reduced through reasonable accommodations. If an employer believes there is such a direct threat, the employer should conduct an individualized assessment of the individual’s present ability to perform the essential functions of the job.

Considerations should include the duration of the risk, the nature and severity of potential harm, the likelihood that the potential harm will occur, and the imminence of the potential harm. The harm must be serious and likely to occur, not remote and speculative. Finally, the employer must consider whether any reasonable accommodations, such as the ones above, would reduce or eliminate the risk of direct threat. The EEOC provides examples of how this balancing test should work.

If employers have questions relating to this balancing test, or regarding the new guidance for hearing disabilities or disabilities and reasonable accommodations in general, it is prudent to contact legal counsel in order to avoid any potential liability.

 

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Rule Would Ban All Non-compete Agreements, and Possibly More

By Contributor
Features

A Changing Landscape?

 

By John Gannon, Esq.

 

John Gannon

John Gannon

Last month, President Biden gave his State of the Union address, during which he hyped the legislative accomplishments made during his time in the Oval Office. One of the topics that made the list: non-compete agreements.

Specifically, the president discussed the Federal Trade Commission’s (FTC) proposed rule to ban all non-compete agreements in the workplace. The rule could affect the employment terms of more than 30 million American workers.

 

Background

As many readers are likely aware, Massachusetts state law already restricts the use of non-compete agreements in the workplace. The Massachusetts Noncompetition Agreement Act (MNAA), which was passed back in 2018, prohibits non-compete agreements with non-exempt employees. In addition, non-compete agreements are enforceable only if an employee is terminated for cause. Under the MNAA, non-competes generally must be limited to 12 months, and must be supported by garden leave (i.e., paying the employee some amount of money during the non-compete period).

The MNAA does not prohibit agreements restricting employees from soliciting business with customers or clients, nor does it impact non-disclosure agreements meant to protect dissemination of trade secrets. And non-compete agreements entered into after the effective date of the MNAA — Oct. 1, 2018 — are not affected.

On Jan. 5 of this year, the FTC proposed its own rule that would ban all non-compete agreements, with limited exceptions. The proposed rule also bans ‘de facto’ non-competes, which could include anti-solicitation and non-disclosure agreements, depending on how they are written.

According to the FTC, “when employers use non-compete clauses to restrict workers from moving freely, they have the power to suppress wages and avoid having to compete to attract workers. Based on existing evidence, non-compete clauses also reduce the wages of workers who aren’t subject to non-competes by preventing jobs from opening in their industry.” The FTC estimates that “the proposed rule could increase workers’ earnings across industries and job levels by $250 billion to $296 billion per year.”

 

The Proposed Rule

The FTC’s proposed rule would ban all non-compete agreements between employers and employees, as well as independent contractors. The rule defines a non-compete as “a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment.”

This is not limited to traditional non-compete provisions that limit an employee from seeking work with a competitor. The rule would encompass post-employment restrictions that ostensibly prohibit the employee from seeking future employment. Certainly, an argument could be made that overly broad non-solicitation or non-disclosure agreements have the effect of prohibiting a worker from going to work elsewhere.

Unlike the MNAA, the FTC’s proposed rule would rescind all employment non-compete agreements currently in place. It would also require employers to inform employees currently subject to a non-compete agreement that the agreement is no longer valid.

 

Strong Resistance

Not surprisingly, the FTC’s proposed rule does not sit well with businesses.

Calling the rule “blantantly unlawful,” the U.S. Chamber of Commerce noted that, “since the agency’s creation over 100 years ago, Congress has never delegated the FTC anything close to the authority it would need to promulgate such a competition rule.

“Attempting to ban non-compete clauses in all employment circumstances,” the chamber went on, “overturns well-established state laws which have long governed their use and ignores the fact that, when appropriately used, non-compete agreements are an important tool in fostering innovation and preserving competition.”

The FTC has invited public notice and comments on the proposed rule through March 20. Businesses and others can submit comments at www.regulations.gov/document/FTC-2023-0007-0001. After the close of this comment period, the FTC will publish a final rule, incorporating the input it receives.

This will just be the beginning. After the rule is issued, employers and trade associations are certain to challenge the rule in court. Ultimately, the legality of this rule may be decided by the U.S. Supreme Court, which is precisely what happened with the recent rule proposed by OSHA mandating a COVID ‘vaccine-or-test’ policy for larger employers. This rule was struck down by the Supreme Court earlier this year.

 

Next Steps for Employers

Many businesses in Massachusetts went through a non-compete process and procedure review back in 2018, due to the MNAA. However, employers need to understand that the proposed FTC rule goes beyond traditional covenants banning employees from working for competitors post-employment. It would be wise for employers to review non-solicitation and non-disclosure agreements currently in place to be sure they will be enforceable should the FTC’s proposed rule become the law of the land.

Businesses should also enhance any agreements meant to protect trade secrets and/or client relationships with suitable policies and procedures. This involves making sure confidential information stays confidential by limiting data access to ‘need-to-know’ groups. It also involves implementing polices geared toward ensuring that sensitive company information stays on site and cannot be accessed on an employee’s personal device.

Finally, employers should carefully follow the progress of the FTC’s proposed rule and work with legal counsel in drafting or enforcing non-compete and non-solicitation agreements going forward.

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, P.C., specializing in employment law and regularly counseling employers on compliance with state and federal laws; (413) 737-4753; [email protected]

Cannabis Employee Not Entitled to Federal Bankruptcy

By Contributor
Features

Petition Denied

By Michael McAndrew, Esq. and Michael Roundy, Esq.

 

Michael McAndrew

Michael McAndrew

Michael Roundy

Michael Roundy

The courts have widely established that cannabis businesses, even if compliant with state cannabis laws, are not protected by federal bankruptcy laws because they operate in a federally illegal industry. But can an employee of a cannabis business who has no ownership interest in that business file for bankruptcy individually under Chapter 13 of the Bankruptcy Code?

This question was answered with a resounding ‘no’ by the U.S. Bankruptcy Court for the District of Massachusetts in its recent decision in In re Blumsack, when the court dismissed such an employee’s bankruptcy petition in its entirety.

The would-be debtor, Scott Blumsack, had worked in the Massachusetts cannabis industry since 2021. At the time of the decision, he was the general manager of a cannabis business that manufactured, retailed, and wholesaled cannabis and cannabis products legally under Massachusetts law. In this role, Blumsack supervised employees, set up the retail operation, managed all aspects of the retail operation, and regularly acted as a ‘budtender,’ a role in which he regularly distributed cannabis to his employer’s customers. He was appropriately licensed under Massachusetts law to dispense cannabis, but had no ownership interest in his employer’s business.

In 2021, Blumsack filed a voluntary petition for reorganization under Chapter 13 of the Bankruptcy Code and submitted a plan of reorganization in which he proposed making payments to creditors out of the salary that he earned working in his employer’s cannabis operation. In the alternative, he proposed a plan for reorganization that would be funded out of his wife’s retirement funds, which arose from her wages unconnected to the cannabis industry.

In response to Blumsack’s proposed plans, the bankruptcy trustee moved to dismiss his bankruptcy petition, arguing that the proposed plans of reorganization could not be confirmed because the debtor’s activities in connection with his employment violate federal law. By working for a cannabis retailer, Blumsack had violated, and continued to violate, federal law by distributing cannabis and conspiring with his employer to violate federal law. The trustee argued that confirmation of the debtor’s plan would necessarily require the trustee to administer proceeds derived from such illegal activity.

Blumsack countered that, if the court adopted the trustee’s reasoning, any employee of a marijuana-related business (such as web designers and warehouse workers serving companies in the industry) could also be deprived of bankruptcy protections because of the cannabis industry’s wide-spectrum contributions to the state’s economy.

The court disagreed. Describing the case as one of “apparent first impression” because no on-point decisions had been found, the court noted that, for approval of a Chapter 13 plan of reorganization, the plan is required by statute to be submitted “in good faith and not by any means forbidden by law.” If a plan is not submitted in good faith, it may be dismissed “for cause.” Although neither ‘good faith’ nor ‘cause’ are defined in the bankruptcy code, both terms have been interpreted in case law throughout the country.

The Bankruptcy Court in this case held that, because Blumsack’s proposed plan of reorganization was funded by wages that were derived from participation in a cannabis retail operation and he continued to engage in the cannabis industry — federally illegal activity — while his bankruptcy case was pending, the plan was not proposed in good faith and was proposed by a means forbidden by law. Specifically, the court found that Blumsack’s job duties “require that he act in violation of federal criminal statutes.” Because of this, his plan would require the Chapter 13 trustee to “knowingly administer wages derived from an active participant in a criminal enterprise.” As such, the court could not find, under an objective standard, that the petition had been filed in good faith.

As a result, the Bankruptcy Court dismissed Blumsack’s petition for cause, noting that a lack of good faith is well-established grounds for dismissal for cause. The court also dismissed Blumsack’s alternative proposed plan for reorganization, despite the fact that it was to be funded by money not derived from the cannabis industry, because even under such a plan, Blumsack “objectively lacks good faith” by seeking the benefits and protections of federal bankruptcy law while simultaneously continuing to earn income from conduct that violates federal criminal law. In short, his plan, however funded, was tainted by his continued federally illegal activity.

While Blumsack’s counsel warned of a slippery slope, the court was unpersuaded and stated that it “must decide only the case it has before it.” The Bankruptcy Court made clear that its decision was cabined to the particular facts of this case, and that questions of good faith require a case-by-case analysis. Nonetheless, it is likely that other courts may take their cues from this decision to prevent others employed by cannabis companies or by companies serving the cannabis industry from filing for Chapter 13 bankruptcy.

How far will the reasoning of the court extend? To employees who do not directly participate in distributing cannabis products? To service providers who generate their own income by serving cannabis clients and thereby assisting them with their federally illegal activities? The Bankruptcy Court’s decision provides no guidance on these issues.

Absent congressional decriminalization of cannabis, issues at the intersection of state and federal laws affecting the cannabis industry will continue to be addressed on an ad hoc, case-by-case basis by federal regulatory agencies, prosecutors, and courts. For now, we can add individual bankruptcy protections to the growing list of complex issues affecting those working in, or for, the cannabis industry.

 

Michael McAndrew is an associate, and Michael Roundy a partner, at the Springfield-based law firm Bulkley Richardson.

Dulye Immersion Helps Local Leader Fill Her Well with Knowledge

By
Aundrea Paulk
Workforce Development

Learning Experience

 

Aundrea Paulk

Aundrea Paulk says no one should think they know everything about leadership.

Aundrea Paulk says many of her friends and colleagues call her a “sponge.” And she likes to use that phrase herself.

She believes it conveys what she considers to be a real and almost unquenchable thirst for knowledge and insight into how she can be a better leader, a better entrepreneur — and a better person.

“I like to learn … and I don’t think anyone gets to, or should get to, a place where they get comfortable and think they know it all when it comes to leadership,” said Paulk, director of Marketing & Communications for Caring Health Center in Springfield and owner of her own event-planning business called Soiree Mi. “Leadership is so expansive, and not only here at the Caring Health Center, but with my own business, I want to make sure that I’m constantly filling my well with knowledge so that, as a leader, I can show up in my best capacity, but also give those nuggets, as they call them, to others that are looking to grow their own leadership skills.”

It was this ongoing quest for knowledge — and desire to pass on those ‘nuggets’ — that prompted Paulk to put her name into consideration last fall when BusinessWest was gifting a slot at the two-day, immersive Dulye Leadership Experience (DLE) in the Berkshires.

Her self-nomination was one of many received by the magazine, and it certainly resonated with those deciding who would partake in this program of intense learning, networking, and professional development.

Paulk, a member of BusinessWest’s Forty Under 40 class of 2022, said she made the very most of her experience and came away with nuggets to share, a better appreciation of the need to sell herself and not just her company — or companies, in this case — and, overall, some solid takeaways on how to be a better, more effective leader.

“After completing the Dulye Leadership Experience immersion training, I learned how to better lead my department and, more importantly, how to recognize the strengths that I already have and better utilize them,” she said. “As the owner of Soiree Mi, it is important that I tap into those strengths to grow my business to develop relationships and gain partnerships that will enhance the overall community. These partnerships have allowed Soiree Mi to move from its infancy stage into an established, successful entity.”

Elaborating, Paulk said she and her staff recently conducted their own day-long retreat at Caring Health Center, and a good portion of the agenda focused on topics that were brought up at the DLE immersion training, including well-being, improved communication, and “networking with a purpose.”

 

Dive Right In

The DLE, as noted earlier, is a two-day, immersive program. It was conceived by Linda Dulye, founder of Dulye & Co., which helps leaders and their organizations cultivate magnetic cultures where employees want to stay and grow. During a painfully slow period for the company in the fall of 2008, their height of the Great Recession, she created the DLE, a nonprofit organization, to help recent college graduates be more workforce-ready and able to form relationships and sell themselves.

Over the years, the DLE evolved, and programming shifted to attract, develop, and retain young professionals in the Berkshires. The descriptions of the programs offered during the immersion provide real insight into how it helps attendees grow professionally and thrive in the modern workplace.

“The workplace has become more diverse, dispersed, digital, and dynamic,” reads the summation for a program titled “Create Connections for Differences.” “These changes create opportunities for growth, learning, and creativity, but they also cause disconnection. This session reveals strategies for working across and with differences to increase effectiveness, belongingness, creativity, and communication.”

A program called “(Re)train Your Communication Muscle” was described this way: “The pandemic has atrophied our social muscles — so much so that many find it difficult to interact with others. We have to retrain ourselves to work better. Fortunately, these muscles are resilient.”

The session was led by Marc Williams, communications coach and author of the books Beyond Limitations and The Rules of Engagement for Public Speaking. Paulk said she found the session helpful, and Williams even more so, especially when it came to the broad assignment of branding herself and building that brand.

She said one assignment attendees were given was to evaluate and update their professional LinkedIn page, and to fully understand its importance when it comes to their ‘brand.’

“We had to assess what we thought other people did without asking them, by just looking at their profile,” she explained while recalling the exercise. “What we found is that most of us don’t use our LinkedIn pages unless we’re looking for a job — that’s the only time people really go in and update it.

“That’s not what we should be doing,” she went on. “We should be making sure our professional and personal brand are on point. He [Williams] assessed and provided great feedback and evaluation of my page and how I can improve it.”

But the session she found most compelling, and the one that probably yielded the most ‘nuggets,’ she said, was one titled “Create a Culture of Well-being Within Your Team,” led by Andrea Lein, a self-described “positive psychology expert.”

“More employees are citing well-being as a key factor in deciding where and how they choose to work,” reads the brief description. “Experts believe we are transitioning to the next global crisis: a mental-health pandemic. Are you and your organization ready?”

Paulk said the session gave her plenty to think about when it comes to being ready, and it is prompting her to be more proactive on this issue.

“I always thought of well-being as self-care and the physical side of the equation,” she told BusinessWest. “I forgot about the importance of social well-being, communication as well-being, how we talk to one another; is it positive?”

Elaborating, she said that, while she still asks her staff members how their weekend went, she now looks to go deeper and find out how people are doing with their physical health, their financial health, their mental health, and how they are faring as they try to balance life and work.

 

Knowledge Is Power

Overall, Paulk said her willingness to take part in the leadership immersion program is a logical expression of her desire to continue learning and refine and build upon her leadership skills, something she believes all young professionals — and even those not quite so young — should be doing.

“The importance of continuing to develop your skills is critical to you as a human being and to what you want to put out in the world, the legacy you want to leave behind,” she explained. “If I stay stuck in a way of thinking or in the way I show up, I’m doing a disservice to myself; I’m doing a disservice to those I’m supposed to be in charge of and help grow.

“That’s why I continue to learn,” she went on. “I feel like there’s never a time in my life — I don’t care if I’m 100 — that I want to stop learning, and learning in different ways.”

That’s why she wanted to be at the Dulye Leadership Experience in November, and that’s why she’s a sponge, always looking to fill her well with knowledge.

In Its Fifth Decade, OMG Inc. Keeps Growing and Innovating

By
From left, Web Shaffer, Hubert McGovern, and Dewey Kolvek on one of the plant floors at OMG Inc.
Construction

View from the Top

From left, Web Shaffer, Hubert McGovern, and Dewey Kolvek on one of the plant floors at OMG Inc.

From left, Web Shaffer, Hubert McGovern, and Dewey Kolvek on one of the plant floors at OMG Inc.

The past three years — spanning the pandemic and all the ways it has impacted industry, from supply chains to workforce challenges — have been rough on businesses of all kinds.

But for OMG Inc., it’s been a different story.

“I want to say three-quarters of the business is re-roofing,” said Web Shaffer, senior vice president and general manager of the firm, which encompasses two main divisions: OMG Roofing Products and FastenMaster. “So, while it’s not entirely recession-proof, when your roof goes, you can patch it for a little while, but you can only do that for so long.”

OMG President Hubert McGovern agreed. “You either get a bucket, or you get a new roof.”

And the bucket isn’t the ideal choice for a large company — think of an Tesla factory, a Target store, or an Amazon warehouse — with plenty to protect under that roof.

Meanwhile, 2020 found people stuck at home, not going on vacation, and, in many cases, investing in their homes, said Dewey Kolvek, OMG’s senior vice president of operations. “During the pandemic, it was crazy, with everybody battening down the hatches. A lot of people were at home, looking around, and saying, ‘you know, maybe we should remodel our bathroom. Maybe we should remodel the kitchen. Oh, let’s put a deck out in the back.’”

OMG Roofing Products, which manufactures and supplies roofing fasteners, adhesives, and rooftop drains, pipe supports, and solar mounts, as well as proprietary installation technology for the flat-roofing market; and FastenMaster, which develops fastening and adhesive products used by remodelers, deck builders, residential framers, home builders, and floor installers, both benefited from this environment.

“We’re not making basic drywall screws or something like that. If we have a new product, it’s got to have a feature, a benefit, a patented intellectual property, and something the customer wants.”

And during a time of global supply-chain issues in 2021 and 2022, “we grew out of control, and we couldn’t keep up,” McGovern said. “These last two years have been record years for the company because of the demand. It’s finally starting to settle, but we’ve been under the gun to produce as much as possible, as fast as possible, for probably two and a half years.”

Kolvek recalls it all vividly. “For a period there, we were on 24/7 for two months, just to try to put a dent in it. It was brutal.”

OMG is no stranger to growth spurts. After launching in 1981 as Olympic Fasteners, by 1987 it was manufacturing 100 million fasteners a year. In 1993, the company became Olympic Manufacturing Group — hence the OMG acronym — and in 1997, it was acquired by Handy & Harman, which was later taken over by a public company called Steel Partners. Throughout its history, OMG has grown about 10% a year, on average, through organic growth, constant product development, and a series of acquisitions.

Today, OMG boasts more than 650 employees — about 450 of them at its Agawam campus, which spans 480,000 square feet over a half-dozen buildings — and records about $400 million in annual sales. Its three other plants are located in Addison, Ill., Charlotte, N.C., and Rockford, Minn., in addition to field salespeople located across the U.S. and overseas. The company estimates that around 65% of all commercial, industrial, and institutional buildings in the U.S. that have been built or reroofed within the past 25 years have one or more of its products on their roof.

“The good news about roofing is, people need roofs,” McGovern said. “So if you have a decent building, you’re not willing to let it just deteriorate; you’re going to get a new roof if you need it. Or you’re going to have a lot of buckets and be running around like a chicken with your head cut off every time it rains.”

 

Hot Stuff

During BusinessWest’s recent visit to OMG’s factory in Agawam, Shaffer pointed out a Chinese advertisement for RhinoBond, the first non-penetrating, induction-based roof-attachment method in North America, which OMG introduced in 1999.

“RhinoBond is a global leader in induction heat welding, and a leading-edge technology in the commercial roofing industry,” he noted. “So we make stuff in Western Mass. and export it to places like China, which is pretty cool. It usually goes the other way.”

McGovern said OMG has a family of about 20 patents on its induction roofing technology, which uses heat to meld the roofing membrane to a fastener plate without having to puncture the membrane with a screw. “It’s a different way of doing roofing — and we lead the market with that.”

On an aerial photo of the Agawam campus, he pointed out a building dedicated to research and development that houses about 30 employees, mainly engineers, who work on developing new products. Over the years, the company’s developments have included TrapEase, the first composite deck screw that does not mushroom; OlyBond Insulation Adhesive, a two-part, low-rise polyurethane foam; OlyBond500 canisters, a new method of applying adhesive, and many more.

OMG’s patented heat-induction system

This flat roof will use OMG’s patented heat-induction system, which requires no screws to pierce the membrane.

“A lot of the growth has come from looking at our customers and saying, ‘what else can we sell these guys that will help them build a better roof?’” Kolvek said. “And that’s where you see our drains come in, or the solar mounts and other things. Those accessories have helped grow the business, as well as new technologies that cannibalize some of our original product line or allow a more premium solution to builders.”

Shaffer agreed. “We’re really getting out there to the customer and saying, ‘how can we help you? What are your challenges you’re facing?’ And maybe we can bring a solution to the table.”

FastenMaster in particular has been introducing new products at a brisk pace, as evidenced by an innovation award it received from Home Depot in November, for its Cortex Hidden Fastening System, which is used to build a deck with fully hidden hardware and fasteners. That kind of continuous development is possible only by staying atop and even spearheading industry trends, McGovern said.

“Some of the technology is changing, but we’ve changed some of the technology with our products,” he noted. “And we’re not making basic drywall screws or something like that. If we have a new product, it’s got to have a feature, a benefit, a patented intellectual property, and something the customer wants.”

“We’re in Western Mass., and we’re all vying for the same pool of workers. So what makes you different than someone else you’re competing against for that same labor?”

Clearly, customers do want them — not only domestically, but in a place like China that’s known much more for its imports to the U.S. than its exports from stateside manufacturers. “You don’t see that a lot in any industry — maybe in some more high-tech ones,” Kolvek said. “But in the construction industry, there’s a lot more imported product. So we have to be different — and better. That’s the bottom line.”

And when OMG develops a successful product, similar products will follow, as with the OlyBond canisters. “We introduced that technology to roofing and, it took off — tens of millions of dollars of sales in a very short period of time,” McGovern said. “Now everybody has a canister technology.”

OMG’s Cortex Hidden Fastening System

Last year, Home Depot gave one of its three innovation awards to OMG’s Cortex Hidden Fastening System.

“In business, that’s what happens,” Shaffer added. “If you’re successful like Tesla, well, somebody else is going to come out with electric cars. They’re not going to let you just do that forever. So you’ve got to move on and innovate again, which is what that whole R&D building is all about.”

And being first to market is important when operating on a global scale, McGovern said. “Then it’s everyone else playing catch-up.”

A key element in OMG’s success has been its embrace of lean manufacturing concepts, Kolvek explained.

“We have a pretty robust continuous-improvement program where we want all employees to be engaged with that thought: what is a better way? How do I improve efficiencies? Can I work safer? Can I work faster? You know, really just instilling people to understand the principles of driving the waste out of everything that we do. There’s always an alternative, and we have to pursue that to stay competitive and stay out in front.”

Shaffer agreed. “How do we compete globally from Western Massachusetts, which is not an industrial region? It’s the innovation plus lean operations keeping costs down and improving that value proposition to the end user. Managing costs and innovating — that’s how we succeed here in Western Mass.”

Focus on People

McGovern said the importance of employees is also reflected in initiatives ranging from tuition reimbursement and financial-wellness programs to company picnics, subsidized healthy meals, and physical-wellness programs such as yoga, massage therapy, and a gym and fitness trainer on site.

“These are all things that enhance people’s lives, that aren’t necessarily attached to the working piece of the company. But if people feel better about themselves, if they’re financially well, if they’re physically well, then we know they’re going to be a better employee. We win, and they win.”

Such efforts are even more important at a time when businesses of all sizes struggle to recruit and retain talented workers.

“It’s a huge issue. That’s why we spend a lot of time and money on it,” McGovern said. “We want the best employees, and we want them to stay. And it’s not an easy market.”

The goal has been to create an employee-centric culture, Kolvek added, and the proof of that model’s success is OMG’s continued growth.

“Management will walk the floor every day, in different areas of the company, just to find the pulse: ‘what are your challenges? What can I help you solve? Do you need anything from me?’ Maybe we’ve got to make an investment somewhere, and who better to highlight that than the person who’s dealing with that challenge day in and day out?

In addition, “you have to differentiate yourself from your competition,” Kolvek said. “We’re in Western Mass., and we’re all vying for the same pool of workers. So what makes you different than someone else you’re competing against for that same labor? If you have employee programs where people see value and benefit, they’re going to be more inclined to come here, stay here, and make a career here.”

Accounting Policies and Procedures Are Essential for Nonprofits

By Contributor
Accounting and Tax Planning

The Goal Is Efficiency

 

Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be?

 

Start with Invoicing

A good first step toward accounting-function improvement is creating policies and procedures for the monthly cutoff of recording vendor invoices and expenses. For instance, you could require all invoices to be submitted to the accounting department within one week after the end of each month. Too many adjustments — or waiting for employees or departments to weigh in — can waste time and delay the completion of your financial statements.

Another tip about invoices: it’s generally best not to enter only one invoice or cut only one check at a time. Set aside a block of time to do the job when you have multiple items to process.

You also may be able to save time at the end of the year by reconciling your balance-sheet accounts each month. It’s a lot easier to correct errors when you catch them early. Also, reconcile accounts payable and accounts receivable subsidiary ledgers to your statements of financial position.

 

Think Through Data Collection

Designing a coding cover sheet or stamp is another way to boost efficiency. An accounting clerk or bookkeeper needs a variety of information to enter vendor bills and donor gifts into your accounting system. You can speed up the process by collecting all the information on the invoice or donor check copy using a stamp. Route invoices for approval in a folder that lists your not-for-profit’s general-ledger account numbers so that the employee entering data doesn’t have to look them up each time.

The cover sheet or stamp also should provide a place for the appropriate person to approve the invoice for payment. Use multiple-choice boxes to indicate which cost centers the amounts should be allocated to. Documentation of the invoice’s payment should also be recorded for reference. And your development staff should provide the details for any donor gifts prior to your staff recording them in the accounting system.

 

Optimize Accounting Software

Many organizations underuse the accounting software package they’ve purchased because they haven’t invested enough time to learn its full functionality. If needed, hire a trainer to review the software’s basic functions with staff and teach time-saving tricks and shortcuts.

Standardize the financial reports coming from your accounting software to meet your needs with no modification. This not only will reduce input errors, but also will provide helpful financial information at any point, not just at month’s end.

Consider performing standard journal entries and payroll allocations automatically within your accounting software. Many systems have the ability to automate, for example, payroll allocations to various programs or vacation-accrual reports. But review any estimates against actual figures periodically, and always adjust to the actual amount before closing your books at year end.

 

Ongoing Review

Accounting processes can become inefficient over time if they aren’t monitored. Look for labor-intensive steps that could be automated or steps that don’t add value and could be eliminated. Also, make sure that the individual or group that’s responsible for the organization’s financial oversight (for example, your CFO, treasurer, or finance committee) promptly reviews monthly bank statements and financial statements for obvious errors or unexpected amounts.

 

This article was prepared by Whittlesey, one of the largest regional accounting firms in New England, specializing in the areas of accounting, audit, advisory, and technology.

Don’t Make Yourself a Target with Easily Cracked Passwords

By
Cybersecurity

Guessing Game

 

NordPass, a password manager that provides users with an encrypted password vault, recently released its annual report on the most commonly used — and, therefore, most easily cracked — passwords.

The most common password globally? That would be ‘password.’ The rest of the top five: ‘123456,’ ‘123456789,’ ‘guest,’ and ‘qwerty.’

In the U.S., ‘guest’ takes the top spot, followed by ‘123456,’ ‘password,’ ‘12345,’ and ‘a1b2c3.’

Clearly, not a lot of effort is going into creating such passwords, and it doesn’t take a hacker much time — mere seconds, actually — to defeat them.

Popular films and TV shows also rank among the past year’s most popular passwords, including ‘batman,’ ‘euphoria,’ and ‘encanto.’

“While the worst passwords might change every year, human beings are creatures of habit,” NordPass notes. “Every year, researchers notice the same pattern — sports teams, movie characters, and food items dominate every password list.”

Here are a few tips from the Federal Trade Commission (FTC) to create strong, secure passwords.

 

Make Your Password Long and Strong

That means at least 12 characters. Making a password longer is generally the easiest way to make it stronger. Consider using a passphrase of random words so that your password is more memorable, but avoid using common words or phrases. If the service you are using does not allow long passwords, you can make your password stronger by mixing uppercase and lowercase letters, numbers, and symbols.

 

Don’t Reuse Passwords

Use different passwords for different accounts. That way, if a hacker gets your password for one account, they can’t use it to get into your other accounts.

 

“While the worst passwords might change every year, human beings are creatures of habit. Every year, researchers notice the same pattern — sports teams, movie characters, and food items dominate every password list.”

 

Use Multi-factor Authentication When Possible

Some accounts offer extra security by requiring something in addition to a password to log in to your account. This is called multi-factor authentication. The something extra you need to log into your account fall into two categories: something you have, like a passcode you get via an authentication app or a security key; or something you are, like a scan of your fingerprint, your retina, or your face.

 

Consider a Password Manager

Most people have trouble keeping track of all of their passwords. The longer and more complicated a password is, the stronger it is, but a longer password can also be more difficult to remember. Consider storing your passwords and security questions in a reputable password manager. To find a reputable password manager, search independent review sites, and talk to friends and family for ones they use. Make sure to use a strong password to secure the information in your password manager.

 

Pick Security Questions No One Else Can Guess

If a site asks you to answer security questions, avoid providing answers that are available in public records or easily found online, like your zip code, birthplace, or mother’s maiden name. And don’t use questions with a limited number of responses that attackers can easily guess, like the color of your first car. You can even use nonsense answers to make guessing more difficult — but if you do, make sure you can remember what they are.

 

Change Passwords Quickly If There’s a Breach

If a company tells you there was a data breach where a hacker could have gotten your password, change the password you use with that company right away, and on any account that uses a similar password. And if someone is using your information to open new accounts or make purchases, report it and get help at identitytheft.gov.

 

Bottom Line

“Passwords are the locks on your account doors,” the FTC notes. “You keep lots of personal information in your online accounts, including your email, bank account, and your tax returns, so you want good protections in place.”

Building a New Home for Girls Inc. Has Been a Learning Experience on Many Levels

By
Suzanne Parker, left, and Yadillete Rivera-Colón
Features Special Coverage

A Journey Continues

Suzanne Parker, left, and Yadillete Rivera-Colón

Suzanne Parker, left, and Yadillete Rivera-Colón in the new home of Girls Inc. of the Valley on Hampden Street in Holyoke.

An adventure.

A struggle.

An experience.

A journey.

Suzanne Parker used all those terms and others that would be considered synonyms, usually with more than a hint of understatement in her voice, to describe the process of taking Girls Inc. of the Valley to the doorstep of opening its new headquarters facility in Holyoke.

The journey, adventure, or whatever she wants to call it is far from over. In fact, construction is still in what would be considered phase 1. But most of the really hard work — and there has been a mountain of it — is now behind Parker, executive director of this nonprofit, and countless others who have been involved.

Thus, they can focus even more of their energies on making this facility all that they hoped it could be when people first started thinking about a new home more than seven years ago.

Indeed, Parker noted that the ceremonial ‘thermometer’ erected on a sign just outside the property on Hampden Street needs to be adjusted to reflect that 92% of the stated $5 million fundraising goal has now been met. Meanwhile, work continues inside on the various spaces that will define this facility, from a community room to a maker space to a teen lounge.

The work to create a new space for Girls Inc. began in earnest out of necessity — specifically, the knowledge that a 40-year lease on property the nonprofit was leasing in downtown Holyoke was expiring and would not be renewed — and brought Parker and other leaders of Girls Inc. to countless properties in or near downtown Holyoke in search of the perfect fit, knowing that such a thing probably didn’t exist.

But they found something close in the former headquarters of the O’Connell Companies on Hampden Street, a building, or at least portions of it, that date back to the late 19th century.

“Throughout this journey, we have gained a great deal of visibility, and people have been able to learn about who we are, what we do, and why Girls Inc. is so important to this region. It’s been a great opportunity to tell our story and get people involved.”

Retrofitting the multi-level structure, complete with many unique spaces, has become a labor of love for those involved with Girls Inc. — and so much more.

Indeed, for many of the girls who are members, it has been a unique, hands-on learning experience, with real-life lessons in everything from marketing to fundraising to architecture. In fact, several girls worked directly with lead architect Kuhn Riddle to design one of the spaces in the new home.

The ‘thermometer’ measuring donations to the Girls Inc. campaign needs to be updated to reflect that more than 90% of the needed $5 million has been raised.

The ‘thermometer’ measuring donations to the Girls Inc. campaign needs to be updated to reflect that more than 90% of the needed $5 million has been raised.

Meanwhile, this quest for, and the building of, a new home has been a tremendous opportunity for Girls Inc. to gain exposure, make new connections, and strengthen existing ones, said Parker, adding that this work is ongoing as the nonprofit works to raise that remaining 8% of the funds needed.

“Throughout this journey, we have gained a great deal of visibility, and people have been able to learn about who we are, what we do, and why Girls Inc. is so important to this region,” she said. “It’s been a great opportunity to tell our story and get people involved.”

And, in many ways, the project has been a means to celebrate and promote women in all kinds of businesses who have been involved in this endeavor. That list includes those working in fundraising, finance, law, architecture, and construction, as we’ll see.

This has also been a study in perseverance, said Yadilette Rivera-Colón, an assistant professor of Biology at Bay Path University, BusinessWest Forty Under 40 winner, and current Girls Inc. board chair, noting that the many inherent challenges in a project like this were magnified greatly by the pandemic, which made every aspect of the work more difficult.

Summing it all up, Parker said that, while there is much to do, a celebration of all that has been accomplished — and learned — is in order. And Girls Inc. will do that in March as it marks the passing of the 90% milestone in fundraising, as well as the completion of the first phase of construction. There will be tours and an opportunity to make more connections and more friends.

It will be an occasion to celebrate what’s been done and what this new home will be — and there is much in both categories.

 

Home Work

As she talked about the search for a new home and the many properties she and others toured during that lengthy process, Parker paused, glanced skyward, and let out a heavy sigh, body language that pretty much told the story.

“There was a four-year period where I was visiting nearly every building in the city of Holyoke,” she told BusinessWest, adding that, while many were attractive in some respects, none could really check all the boxes she wanted to check.

One was seemingly perfect in most ways, but had little if any parking, she said. Other property makeovers into a permanent home for the agency were simply out of the agency’s price range. And a great number simply needed way too much work to fit the bill.

Eventually, some properties graduated beyond the tour stage and into the exploration, or feasibility, stage, and that further consideration meant investments in time, energy, and sometimes money, she explained. And as the vetting process continued, there were often hard decisions about if and when to let go and move on to something else.

“To have to decide not to go ahead with it is a big decision,” she explained. “You’ve invested time and energy and resources into that, but you have to make a decision … that this is not the one. But you don’t know if the one is out there. There were lots of hard decisions to make.”

The property on Hampden Street didn’t exactly check all the boxes, either. Indeed, its front door is literally a five-foot sidewalk away from a very busy street, said Parker, adding that there were infrastructure issues as well.

But those few shortcomings were all but lost in everything else the building provided — from ample parking at a lot just a few hundred feet away to a backyard; from easy access to a nearby public park to 16,000 square feet of intriguing space Parker described as a “blank canvas” that would enable Girls Inc. to accomplish its primary goal of bringing all of its staff and programing under one large roof.

The property became available somewhat unexpectedly in 2020, at the height of the pandemic, and in many respects because of it — its owners had decided it would not be viable as office space moving forward with the advent of remote work. After some due diligence, those at Girls Inc. decided their search was over.

Some of the new and innovative spaces at the new home of Girls Inc

Some of the new and innovative spaces at the new home of Girls Inc. of the Valley include a teen lounge (seen here), a maker space, and a community room.

But the laundry list of challenges certainly wasn’t, especially with the way the pandemic slowed many aspects of this broad endeavor or prompted a full pause.

First, let’s back up a bit.

Our story starts back in 2016, with the knowledge that a new home was needed, said Parker, adding that an initial fundraising campaign, with a goal of $3 million, was launched in 2018 — long before a suitable space had been found. And the campaign got off to a great start, with gifts from the Kendeda Fund and the Elaine Nicpon Marieb Charitable Foundation.

“We were doing well,” said Parker. “And then, the pandemic hit, and we had to take a pause from the campaign. But the campaign steering committee continued to meet regularly throughout that time; we figured out how to use Zoom, we met virtually, and they kept meeting month after month.

“I think some people might have pulled the plug on a campaign,” she went on. “But we kept working.”

And this work enabled Girls Inc. to push ahead after all its due diligence on the Hampden Street property and eventually commence work in the spring of 2022, bringing a long-held dream that much closer to reality.

Cynthia Medina Carson, an executive recruiter, talent consultant, and leadership coach now living in New York, is one the campaign co-chairs and a Girls Inc. alumna who grew up not far from its original home. She remembers walking into what was then a new space for Girls Inc. back in the early ’80s.

“The approach has been, ‘we’re not going to make this for you without you.’ Every part of the process involves the stakeholders; they have to be part of it, so that, in the end, this will be a building we will all be proud of.”

She also remembers thinking that setting aside space for girls was somewhat radical at the time — but very important. It gave girls a place to go, things to do, and opportunities to learn. She said that space — and the programs staged in it — was so important to her development that she signed on to get involved in finding and creating a new home.

“I know there’s a lot of afterschool programs and online stuff, but having the actual physical space where people can congregate and be who they need to be around people who advocate for them and champion them is a very unique thing to have for women,” she said. “So it was very important for me to get involved in this project.”

And like the others we spoke with, she said this has been a challenging journey, but an invaluable learning experience as well.

“It was hard and crazy, and it wasn’t the journey everyone thought it would be,” she noted. “We ended up where we needed to be, but it was hard; it was intense.”

 

Designs on Growth

As Parker and Rivera-Colón led BusinessWest on a tour of the facilities, they stopped in a number of the emerging spaces. In each one, they talked about how they would enable Girls Inc. to serve more girls and expand its mission.

The renovations were scheduled to enable significant amounts of program space to be ready this summer, said Parker, adding that, given the property’s prior uses as a home to lawyers, engineers, and other professionals, minimal work will be needed to prepare the space for the agency’s staff and administration.

These emerging spaces include:

• A community room, a large space suitable for both small- and large-group activities. It will be the site of healthy-living programming, including dance, active games, yoga, and meditation;

• Maker space, which will be the cornerstone of the Eureka! program, where eighth-grade girls begin a five-year journey toward possible careers in STEM fields. The space will be educational and fun, with hands-on activities; and

• A teen lounge, a space for teen girls to call their own. A relaxed and empowering environment, it will be loaded with college-readiness resources and will host a diverse range of teen-centered programs.

The renovation work at the agency’s new home — and many stages of the process that came before it — have, as noted earlier, provided learning experiences for girls involved with the agency, said Parker, noting that teens gave tours to donors and potential donors.

The red hard hats

The red hard hats at the home of Girls Inc. reflect a project that has been an adventure and a learning experience on many levels.

Meanwhile, some of the Eureka! program teens learned about architecture and design from the team at Kuhn Riddle, led by president Aelan Tierney (one of BusinessWest’s Women of Impact for 2022), and actually made one of the design decisions on one of the spaces — a lobby area outside of the teen center.

Overall, nothing about the new home for Girls Inc. has been finalized without the input of they main stakeholders: the girls themselves, said Rivera-Colon, adding that this includes the location of Parker’s office.

“The approach has been, ‘we’re not going to make this for you without you,’” she explained. “Every part of the process involves the stakeholders; they have to be part of it, so that, in the end, this will be a building we will all be proud of. Everyone has had input, from the youngest girls up to Suzanne, which I think is incredible.”

While offering tours and providing input on the new space, girls have also seen women at work on every facet of this project, which was another goal and another part of the learning experience, said Parker, adding that many area women professionals have been integral to this project.

That list includes Tierney at Kuhn Riddle; attorney Rebecca Thibault with Doherty Wallace Pillsbury & Murphy, a former Girls Inc. board member; construction managers D’Lynn Healey and Ta Karra Greene with Western Builders, the general contractor for the project; Vicky Crouse, president of Commercial Lending at PeoplesBank; and Julie Cowan, vice president of Lending for MassDevelopment.

These professionals serve as role models, said Parker, adding that, from the start, this project was to be women-led and girl-focused.

“It’s been incredible the number of women involved in leadership roles on this project,” Rivera-Colón said. “And it wasn’t by accident.”

Summing up the feelings of most people involved with this project, she added that “we’ve been so long in planning and executing all this that it doesn’t seem real that we’re finally here. But we are.”

 

Bottom Line

Given the words used by Parker and others to describe this long and difficult process, one can see why those involved would certainly not want to do this any time soon.

The good news is they won’t have to; the property on Hampden Street will suit the needs of Girls Inc. for decades to come.

While acknowledging that fact, all those involved also recognize that, as challenging as this journey has been, it has also been rewarding on countless levels. And it encapsulates all that this thriving agency is all about: enabling girls to learn, grow, and reach their full potential — together.

Considering all that, this has certainly been an exercise in building momentum for Girls Inc. — figuratively but also quite literally.

 

Updated Act Introduces New Rules, Incentives to Promote Retirement Plans

By Contributor
Accounting and Tax Planning Special Coverage

Save and SECURE

By Dan Eger

The SECURE Act, or Setting Every Community Up for Retirement Enhancement Act, was signed into law in December 2019. This legislation made it easier and more affordable for individuals to save for retirement by introducing new rules and incentives that promote long-term savings.

The SECURE Act also supports small businesses by making it easier for them to offer retirement plans to their employees.

Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.

The 2019 legislation included changes that affected traditional 401(k)s and IRAs, such as expanded eligibility for opening a Roth IRA, new requirements for minimum distributions from retirement accounts, and incentives for small businesses to offer retirement plans. The law also included provisions to benefit those who are retired or disabled, such as increasing the age at which a person must begin taking required minimum distributions from 70½ to 72.

Legislation commonly referred to SECURE 2.0 Act (the Consolidated Appropriations Act of 2023) was signed into law on Dec. 29, 2022. The SECURE Act 2.0 bolsters the benefits offered in 2019’s version, making it more enticing for employers to provide retirement plans and improve employees’ retirement prospects along the way.

What follows is a summary of some of the provisions, but keep in mind that the act includes more than 90 provisions that potentially affect retirement-savings plans.

 

Mandatory Automatic Enrollment

Effective for plans beginning after Dec. 31, 2024, new 401(k) and 403(b) plans must automatically enroll employees when eligible. Automatic deferrals start at between 3% and 10% of compensation, increasing by 1% each year to a maximum of at least 10%, but no more than 15% of compensation. Participants can still opt out.

“Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.”

 

Automatic Escalation

Beginning in 2025, for new retirement plans started after Dec. 29, 2022, contribution percentages must automatically increase by 1% on the first day of each plan year following the completion of a year of service until the contribution reaches at least 10%, but no more than 15%, of eligible wages. Governmental organizations, churches, and businesses with 10 employees or fewer, as well as employers in business for three years or fewer, are exempt from this policy.

 

Expanded Eligibility for Long-term, Part-time Employees

Under current law, employees with at least 1,000 hours of service in a 12-month period or 500 service hours in a three-consecutive-year period must be eligible to participate in the employer’s qualified retirement plan. SECURE 2.0 reduces that three-year rule to two years for plan years beginning after Dec. 31, 2024.

 

Increase in Catch-up Limits

Effective after tax year 2024, SECURE 2.0 provides a notable rise in the amount of contributions for those aged between 60 to 63. Generally, the additional catch-up limit for most plans is $10,000 and only $5,000 for SIMPLE plans. These amounts are subject to inflation adjustment just like the normal catch-up contributions. Furthermore, those more than 50 years old are eligible for increased contribution limits on their retirement plans (known as ‘catch-up contributions’). For 2023, the maximum catch-up contribution amount has been set to $7,500 for most retirement plans and will be subject to inflation adjustments.

 

Rothification of Catch-up Contributions for High Earners

For plans that permit catch-up contributions, high earners ($145,000 in paid wages from the employer sponsoring the plan the preceding year, indexed to inflation) can no longer enjoy the privilege of tax-deferred catch-up contributions, as their contributions need to be characterized as designated Roth contributions.

 

Treatment of Student-loan Payments for Matching Contributions

Starting in 2024, student-loan payments can be treated as part of your retirement contribution to qualify for employer-matched contributions in a workplace retirement account. Employers will have the flexibility to provide contributions to their retirement plan for employees who are paying off student loans instead of saving for retirement.

 

Emergency Savings Accounts

Starting in 2024, retirement plans will have the option of providing ‘emergency savings accounts’ that allow non-highly paid employees to make after-tax Roth contributions to a savings account within their own retirement plan. Employers may automatically opt employees into these accounts at no more than 3% of eligible wages. Employees can opt out of participation. No further contributions can be made if the savings account has reached $2,500 (indexed), or a lesser limit established by the employer. The Department of Labor and/or the Treasury Department may issue guidance on these provisions.

 

Withdrawals for Certain Emergency Expenses

Penalty-free distributions are allowed for “unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses” up to $1,000. Only one distribution may be made every three years, or one per year if the distribution is repaid within three years. Penalty-free withdrawals are also allowed for small amounts for individuals who need the funds in cases of domestic abuse or terminal illness.

 

Federal Contribution Match

Starting in 2027, low-income employees can gain access to a federal matching contribution of up to $2,000 each year that will be deposited into their retirement savings account. The matching contribution is 50% of the contributions, but it decreases according to income — for example, married taxpayers filing jointly between $41,000 and $71,000, and single taxpayers between $20,500 and $35500.

 

Required Minimum Distributions

Beginning Jan. 1, 2023, the age for required minimum distribution (RMD) from an IRA is increased to age 73. Starting in 2033, the RMD age will be 75. (IRA owners turning age 72 in 2023 would not be required to take RMDs in 2023.) Furthermore, the penalty for not taking your RMD has been decreased from 50% of what was required to be withdrawn to 25%, and even further down to 10% if corrected within two years.

 

Facilitation of Error Corrections

The act expands the self-corrections system, allowing more types of errors to be fixed internally without having to amend returns in the Employee Plans Compliance Resolution System.

 

Immediate Incentives for Participation

At this moment, employers use matching contributions as a means to motivate employees to save for their retirement. Beginning in 2023, employers can incentivize employees with gifts cards or other small monetary rewards to increase engagement, although any financial rewards should be small and cannot come from retirement-plan assets.

In summary, the SECURE Act 2.0 provides many new benefits and opportunities to save for retirement. It allows employers to offer more flexible contributions and encourages employees with incentives to become engaged in their own financial health. With reduced penalties and expanded self-correction rules, this act gives Americans more control over their retirement savings, allowing them to become better prepared for their future.

As always, it’s important to consult with your advisor for advice, as guidance and changes to provisions are expected, and everyone’s situation is unique.

 

Dan Eger is a tax supervisor at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

What Does the Cybersecurity Landscape Look Like in 2023?

By
Cybersecurity Special Coverage

Defense Mechanism

 

The numbers are staggering. According to Cybersecurity Ventures’ 2022 cybercrime report, the cost of cybercrime is predicted to hit $8 trillion in 2023 and will grow to $10.5 trillion by 2025.

The impacts on businesses are already well-established. According to security.org, one in every six businesses that fell victim to cyberattacks faces ransomware, and about half of them pay the ransom. And according to a report last year by Security Intelligence, the share of data breaches caused by ransomware grew 41% in the previous year and took 49 days longer than the average breach to identify and contain.

A study conducted last year by Positive Technologies among financial organizations, fuel and energy organizations, government bodies, industrial businesses, IT companies, and other sectors found that cybercriminals are able to penetrate 93% of company networks and gain access to local network resources.

Such breaches, obviously, affect personal data. In 2020 alone, data breaches exposed more than 37 billion personal records, 82% of which came from only five breaches, security.org notes. Data breaches affect not only companies and organizations, but also the people whose information is in the exposed records. And identity-fraud losses in 2020 cost its 49 million victims $56 billion in total, or roughly $1,100 per victim.

“Cyber insurance premiums are climbing, and it’s becoming increasingly difficult for companies to afford or obtain coverage.”

Clearly, the threat is real, and growing. Here are a few trends to consider when looking at the cybersecurity landscape, and what tech media and organizations are saying about them.

 

Rising Threats, Rising Liability

With the rise in cybercrime has come increased risk for businesses, and that means a much larger cybersecurity sector. According to security.org, the global cyber insurance market was worth $7.8 billion in 2020 and is likely to grow into a $20 billion industry by 2025. About 75% of all cyber insurance premiums are for businesses, and the rest for individuals. But that could be shifting as well.

So, too, is the responsibility companies bear for their own data security, Forbes projects. “Cyber insurance premiums are climbing, and it’s becoming increasingly difficult for companies to afford or obtain coverage,” the publication notes. “To negotiate insurance premiums and better risk coverage, businesses will be required to present evidence across a broad spectrum of security areas in order to prove compliance with leading cybersecurity standards and best practices.”

Organizations will begin to conduct enterprise risk assessments that highlight the maturity level of their cybersecurity program and proactively address any underwriting concerns, it continues, noting that risk assessments can help determine decisions around insurance gaps, limits, and coverage.

“With the distinct possibility of a global recession on the horizon, we expect to see ransomware attacks spike in 2023. However, larger organizations in regions heavily impacted during the ransomware boom are the most prepared for this wave after investing time and money in fighting back.”

As for those internal efforts, Forbes also notes that cybersecurity has become too complex for many organizations to manage on their own, and most companies don’t have the skills or resources to manage a full-fledged security operations center (SOC). For these reasons, many businesses will be forced to think creatively and could decide to outsource their day-to-day security operations.

Locally, one such SOC is being developed at Springfield Union Station, part of a state- and federally funded project announced in November to establish a Cybersecurity Center of Excellence at the site, which will also include a ‘cyber range’ for training.

Mary Kaselouskas, vice president and chief information officer at Springfield Technical Community College (STCC), which will manage the center, noted recently that “a lot of companies don’t have the resources for a fully operational SOC, or can even afford to have managed SOC operations,” so the need for a local SOC is clear.

 

Zero Trust on the Rise

One way businesses are increasingly curtailing cyber threats is through a concept called ‘zero trust.’

According to IBM, the idea, developed by John Kindervag in 2010 while a principal analyst at Forrester Research, is a broad framework that promises effective protection of an organization’s most valuable assets. It works by assuming every connection and endpoint is considered a threat.

Essentially, a zero-trust network logs and inspects all corporate network traffic, limits and controls access to the network, and verifies and secures network resources. A zero-trust security model ensures data and resources are inaccessible by default, and users can only access them on a limited basis under the right circumstances, known as least-privilege access. The strategy also authenticates and authorizes every device, network flow, and connection.

“As hybrid work became a way of life, more organizations have started adopting zero-trust frameworks, meaning all users, apps, and devices that request access are assumed to be unauthorized until proven otherwise,” Security Intelligence notes. “Organizations with a zero-trust approach deployed saved nearly $1 million in average breach costs compared to organizations without zero trust deployed.”

 

Connecting the Globe

Perhaps no cybersecurity trend has been bigger in the last several years than the scourge of attacks related to the supply chain. Analyst firm Gartner predicted that, by 2025, 45% of global organizations will be impacted in some way by a supply-chain attack.

“Cyber criminals look for organizations or industries teetering at the edge and then make their move to tip them over,” said Charles Henderson, an IBM global managing partner and head of IBM Security X-Force. “Last year, we saw that with manufacturing — a strained industry viewed as the backbone of supply chains. With the distinct possibility of a global recession on the horizon, we expect to see ransomware attacks spike in 2023. However, larger organizations in regions heavily impacted during the ransomware boom are the most prepared for this wave after investing time and money in fighting back.”

Global threats often require a global response, which is why, last year, the U.S. State Department announced the launch of the Global Emerging Leaders in International Cyberspace Security (GEL-ICS) Fellowship, in partnership with the Meridian International Center.

The fellowship will support the development of a diverse global network of future cyber policy leaders who share the U.S. and other partners’ vision for cyberspace, and is designed to equip emerging leaders from the governments of these foreign partners with the knowledge and global connections to be advocates of the framework of responsible state behavior in cyberspace, as affirmed by the United Nations General Assembly.

The first cohort of 20 to 25 government officials will engage in a year-long program on international cyberspace policy in 2023. Fellows will visit Washington, D.C., New York City, and San Francisco to engage with U.S. and international leaders from government, industry, and civil society. They will also participate in a series of thematic webinars to support continuing education and foster networking among the fellows and stakeholders.

Additionally, fellows will reconvene on the margins of the 2023 Internet Governance Forum hosted in Japan to mark the end of the program. With each year, fellowship alumni will form a growing, global network of proponents for a stable and secure cyberspace for future generations.

 

Good Time for a Job Search

If there’s a plus to the increasing cyber threat landscape, it’s an explosion in job opportunities. Even at a time when the IT industry is seeing massive layoffs, cybersecurity appears to be a safer harbor than other tech careers.

The global cybersecurity workforce grew to encompass 4.7 million people last year, reaching its highest-ever levels, according to a workforce study by ISC2. However, the same study found there is still a need for more than 3.4 million security professionals, an increase of more than 26% from 2021’s numbers.

The U.S. Bureau of Labor Statistics projects similarly robust need, estimating that the number of cybersecurity jobs will grow by 35% between 2021 and 2031. According to Cyberseek, of those 3.4 million professionals needed globally, about 770,000 opportunities are in the U.S. alone.

Amid Enrollment Challenges, Colleges Stress Culture, Support

By
Hubert Benitez
Education

It’s Not Simply Academic

Hubert Benitez

Hubert Benitez says AIC strives to create a sense of belonging for students.

With high-school graduation numbers down in the U.S. and college enrollments following suit, Hubert Benitez says higher-education institutions must take a multi-pronged approach to enrollment management and their “overarching value proposition.”

“The academic portfolio of all our institutions across the region are very strong. So the students have options: wherever they will go, they will receive a sound education,” said Benitez, who began his tenure as president of American International College (AIC) last spring. “So, having said that, what truly differentiates one college from another?”

To answer that question, he pointed to a report called “AIC Reimagined 2022-2027,” which considers how to rethink strategies in six different pillars, including academics; student life, engagement, and support; fiscal growth; internal and external community engagement and development; diversity, equity, inclusion, and belonging, and athletics.

Take the first pillar, academics. “We realized, post-pandemic, that we have to reimagine our academic enterprise and what the collegiate experience is all about,” Benitez told BusinessWest. “We have to rethink how we offer education. Students learn differently, and they want to attend college in a different way. We have a lot of non-traditional students coming back to education, people who, post-pandemic, want to retool themselves for a career change — adult learners, students who have family commitments. If we are to address their needs, we really have to rethink how we offer our academic portfolio.”

Colleges and universities everywhere are having similar conversations about how to attract, and then shepherd to graduation, a smaller pool of potential college students than in past decades, due largely to changing demographics.

“The return-on-investment case has been made over and over again. The economics have been quite clear for a long time: people with a college degree earn over a million dollars more over their lifetime than those who don’t have one.”

According to the National Student Clearinghouse Research Center, undergraduate enrollment at U.S. colleges fell by 1.1% in fall 2022 compared to 2021, a pace of decline that’s nearly returned to pre-pandemic rates. In between was a year, 2020, when enrollment dropped 3.4%, followed by 2.1% in 2021. The net effect of those years is an enrollment total that’s down close to 7% from 2019.

“The trend for higher-education enrollment had been on the decline, but this was certainly exacerbated by the pandemic years,” Elms College President Harry Dumay said. “But things are coming somewhat back to normal these days for us.”

That’s reflected in some healthy numbers for Elms’ various segments, including first-time freshmen, traditional transfer students, and especially graduate students; the only segment that has seen some erosion is transfers from community colleges, which were hit hard by the pandemic.

A stabilization of enrollment makes sense, despite the high cost of college, Dumay said. “The return-on-investment case has been made over and over again. The economics have been quite clear for a long time: people with a college degree earn over a million dollars more over their lifetime than those who don’t have one.”

What Elms and many other schools are now doing is providing more flexibility for adult and non-traditional students, such as stackable, short-term certificates that ease the way to gainful employment and accumulate toward a degree down the line.

However, he noted, beyond the economics, what shouldn’t be undervalued is the formative aspect of college, especially for the shrinking 18-22 age demographic. “Whether you go full-time or part-time, whether residential or commuter, there is something that happens in those years — forming character, learning to think critically — which affects the value.”

Benitez said culture is a key element of AIC’s message to prospective students and their parents.

“One differentiator is how we create a sense of belonging for the students. It’s very important to today’s students,” he explained. “When they arrive on campus, they need to feel like they belong. I truly believe AIC provides that value to any student from any background because we have intentionally created an environment where every single student feels like they belong.”

Once enrolled, he added, “we follow the student along their educational journey, providing support services at every single stage of their academic journey.”

“If any students are struggling for any reason that would keep them from persisting and staying enrolled at college, we have a whole team dedicated to helping them work through that.”

Darcey Kemp

Darcey Kemp

In fact, that’s a key element of one of the six pillars, and it’s important, especially for first-generation college students, to have the peace of mind offered by such supports.

“For a parent who did not have the opportunity to attend college, leaving his or her child in an environment where they don’t know if they’re going to feel right has to be daunting,” Benitez said. “We try to approach parents and students alike, making them understand that’s important to us. I hope they are relieved when they come here and feel the caring environment.”

 

Support System

Springfield Technical Community College (STCC), whose enrollment figures are up slightly from last spring, is also heavily focused on culture and student support, said Darcey Kemp, vice president of Student Affairs.

“There’s no one-size-fits-all approach,” she added. “Our students are individuals, with individual experiences.”

The support starts early, with outreach to high-school students to help them with applications, placement testing, financial aid, choosing class schedules, and more. “We come to you,” Kemp said, noting that STCC also invites guidance counselors to campus so they can gather information to bring back to their schools.

Aware of the impact the pandemic had on men of color, who dropped out disproportionately during that period, STCC also created the Male Initiative for Leadership and Education (MILE), a program that provides inclusive academic support, mentoring, and community-engagement opportunities to male students, particularly Black and Latino students. Participants connect with professionals who serve as mentors throughout the student’s time at the college, helping them stay on track to reach their degree goals.

That can be a challenge at many institutions. The Education Data Initiative reports that first-time undergraduate freshmen have a 12-month dropout rate of 24%. Among first-time students in bachelor’s-degree programs, almost 26% do not earn their degree; among all undergraduate students, around 40% drop out.

The economic impact can be significant; the same report notes that college dropouts make an average of 33% less income than those who hold bachelor’s degrees, and college dropouts are almost 20% more likely to be unemployed than any degree holder.

That’s why student advisors at STCC work closely with students to make sure they’re taking the classes they need to achieve their degree goals, and why the college regularly looks back five semesters and reaches out to anyone who has paused their education and not returned during those two and a half years, to talk about what supports they might need to continue, and what steps to take to re-enroll.

“We need, in higher education in general, to invest time and energy into resources that help students reach their personal and academic goals,” Kemp said. “It’s an individualized conversation for each student.”

Dumay said 44% of Elms students are Pell-eligible, meaning they come from low-income families, so it’s important that they succeed. “You don’t want to come to Elms and not graduate, whether with debt or without debt, because of the investment of time. It’s really important we help our students graduate.”

With a student graduation rate and a first-year retention rate higher than the national average, that effort has paid off, he added. “There are a variety of things we put in place to ensure we help students be successful, including a physical Center for Student Access, but also supports like coaching.”

Benitez said 50% of AIC’s student body is Pell-eligible, and many are the first in their family to attend college. “We have a number of programs for first-generation college students that include very basic things like time management, how do you learn, how do you study, how to you financially plan? This is often new to them, so helping them navigate their college experience is very important to us.”

STCC’s Center for Access Services helps students tackle issues such as homelessness and food insecurity that could hinder their ability to get an education and climb the economic ladder.

“If any students are struggling for any reason that would keep them from persisting and staying enrolled at college, we have a whole team dedicated to helping them work through that,” said Kemp, adding that the STCC website also has a ‘chat now’ feature for student questions on anything from admissions to financial aid to understanding the Blackboard learning-management system. “It’s another way to demonstrate to students that we will engage with them in any way they want to engage with us.”

 

Rolling with the Changes

In short, Kemp said, “it’s important that we continue to share with students that there are opportunities to manage all the things they have going on. If a working parent wants to go to college, they can; they don’t have to choose between taking care of the family and obtaining a degree.”

That proposition is easier now, she added, with the program flexibility — in person, hybrid, or fully online — that emerged during the pandemic.

Benitez believes academic institutions today need to serve as engines for workforce development, and in AIC’s case, the impact is local, as most of its students hail from the region, and many stay and work here after graduation.

“We ask our business partners, what do you need in a graduate? What is the skillset, the competency set? And how are we going to revise and reimagine our academic offerings so it’s responsive to the workforce needs of this region?”

Because young people today plan to change jobs many times, one role of colleges is to teach them to be lifetime learners, he added, so they can easily adapt to their changing environment; in some cases, they’re training for jobs that don’t even exist yet. “We should prepare the groundwork for them to learn as they grow,” Benitez said.

Dumay told BusinessWest that the past few years have been a difficult time for all colleges, one in which they’ve had to be prudent financially. But he believes those efforts to tighten up and adapt are worth it.

“We’re providing a tremendous service to the general public — not just Elms, but all colleges like us — by helping the citizenry, both young people and not so young, get a foot on the economic ladder. That benefits all of us,” he said.

“If higher education struggles, the entire economy struggles,” he went on. “We are certainly staying strong, and the help that has been provided by the federal and state government helped a lot of colleges remain strong. But it is still a challenging time for higher education, and we want to remain healthy and strong so we can serve our students.”

To do that, Benitez said, requires a willingness to do things differently — in other words, to reimagine a college education. He believes the alternative, stagnation, is unsustainable.

“Academic institutions must be able to adapt to the current times, to meet the student where they are,” he said. “That’s critically important in these times.”

New Bay State Cannabis Entities Must Revisit Their Plans

By Contributor
Holyoke’s mill district
Cannabis

Beyond ‘If You Build It, They Will Come’

By Meg Sanders

 

The local cannabis industry is overflowing with weed.

The Massachusetts Cannabis Control Commission’s open data platform reports 95 cultivators were operational and licensed as of Dec. 8, 2022. Hot on those heels, another 180 provisional licensees are seeking approval that would bring the state up to somewhere around 3.6 million to 4.98 million square feet of canopy for flower cultivation within the Bay State cannabis market’s roughly 250 cannabis stores. 

If your operating and business plan is based on an outlook written for investors in the previous presidential administration, or during the halcyon days of the great green rush of the past, it’s time to face the truth: Massachusetts is well beyond the point of “if you build it, they will come.” 

So those Massachusetts cannabis businesses still in the queue or just getting open need to revisit their market overviews for investors and operators. They need to do so today. Not tomorrow, not if a market event happens — right now.

“Those Massachusetts cannabis businesses still in the queue or just getting open need to revisit their market overviews for investors and operators. They need to do so today. Not tomorrow, not if a market event happens — right now.”

Meg Sanders

Meg Sanders

Take a very hard look at what needs to be rethought, or what needs to be immediately addressed, in regard to budgeting, SOPs, and overall market impact strategies for launch — and for long-term survival. Roughly 37% of all cannabis operators in the U.S. are not profitable, and too many businesses are unaware they are launching only to be licensed to lose money and fail.

For Massachusetts, the danger zone is already here. 

 

New Markets = New Consumers

As more retailers and brands emerge online, operators just now getting their operational licenses are typically doing so using plans they wrote when originally fundraising months or years back, often without taking into account how business plans and projections need to be tweaked, updated, or overhauled in the realities of the Massachusetts cannabis industry in 2023.

Canna Provisions is the ninth-largest independent cannabis company in the Commonwealth, has won multiple ‘Best Dispensary’ awards for selection and customer service, and has been named one of the best companies to work for in the nationwide industry. And even we are reworking our plans. 

Surviving the current market constriction and correction from the imbalance of supply and demand — something that has happened in other markets that came online, though it arrived faster here in Massachusetts — is a challenge of smart maneuvering and business forecasting. Ultimately, those businesses with clear eyes, that are as responsible with every dollar moving in and out of the business, will be the ones that make it out. That’s also why, to me, 2023 isn’t all doom and gloom, despite the headlines. 

Price compression has been on the industry’s collective mind for the past year, which makes it all the more important to create new strategies at the retail level. Differentiation for brands will come down to matters of quality of product, a consistent and predictable retail experience, and the education level of the consumer. 

What we know for sure, as seen from my experience in cannabis stretching back to the dawn of the legalized market in Colorado more than a decade ago, is that, when new markets flanking legalized states come online, it helps everyone in the existing legal retail market. But ultimately, the ones that really come out ahead are those with a key differentiating advantage and a realistic, thoughtful approach to the business. Many small first-time operators do not have the forward-looking business modeling abilities needed in the current market, especially when their average day-to-day will be spent just trying to stay afloat. 

 

Smart Business Savvy Is the Key to Success

As experience has shown, the sky doesn’t fall in an existing market when competition is tight and the supply is in surplus, but businesses do need to be responsible. For those that need a reminder, thanks to IRS Code 280E, the effective tax rate for cannabis companies is roughly 70%. Meanwhile, cannabis companies cannot deduct normal business expenditures. Our three biggest line items, in order, are inventory, payroll, and taxes (the statewide total collected for 2022 was roughly $284 million, to paint the picture).

“Surviving the current market constriction and correction from the imbalance of supply and demand — something that has happened in other markets that came online, though it arrived faster here in Massachusetts — is a challenge of smart maneuvering and business forecasting.”

In some instances, the towns themselves are waking up to the runaway nature of the market glut. Last month, Northampton city councilors set a new limit on local cannabis dispensaries allowed to open (capped at 12 retail locations now) for a municipality noted for having the most licensed dispensaries in the state. 

Even with our collective experience in retail cannabis operations and strategy, it’s still a massive challenge to make it work with so many ways our hands are tied or restricted compared to traditional industries. When the revenue numbers generated by legal cannabis in the state seem to defy the crunch-time feeling of the market, all businesses and consumers need to remember the lion’s share goes directly to the government instead of back to the business. That’s another reason why it’s important to be more careful than ever about how and where dollars are spent, and how we are utilizing the investor capital we raise for our ongoing expansion and scaling plans.

 

Best by Definition

Competition is already at a fever pitch in the state, and in cannabis, getting there first sometimes just makes you best by definition in the market’s eyes. At the retail level, look at any new cannabis state — say, New York — and what happens when the first stores open: lines around the block and product (or what variety there is at first) flying off shelves at steep prices that make investors smile and consumers wince. But when the market becomes more savvy and educated about the products and value system of a brand-new industry, first is no longer best. 

As challenging as this time and sector is, it’s as important for the turbulent tenor of the day to subside as much as it is important for it to simply succeed at a functional level. In fact, it must succeed for the greater industry to thrive.

There is no shortage of stories about widespread layoffs and restructuring for asset consolidation on a large scale with bigger companies, primarily multi-state operators (MSOs). But in comparison to the trials of new, very small operators that found it a matter of survival just to get to the doors-open phase, MSOs have it much easier. They can bleed money in a way small independent shops cannot. If they have operational experience already, they may still not have the ability to see the forest through the trees if they are not actively responding to the business climate of an ever-changing, statewide industry.

You will need more money — from either increased sales or investor dollars for market expansion. There will continually be massive restrictive aspects to operating as long as no new banking reform measures or full-scale legalization measures are enacted. So plan on enduring such aspects as much as you should plan to be noble and focus on what is a differentiating aspect of your business.

And don’t plan on having a future in the business until you get your business plan reflective of the industry we have versus the one we want. For those new or inexperienced operators that don’t get those lessons under their belt, theirs will be a back aching for the lash of “don’t say you weren’t warned.”

 

Meg Sanders is the CEO of Canna Provisions, which operates cannabis dispensaries in Holyoke and Lee.

Top Entrepreneurs 2022

By
Bruce McAmis, left, and Benson Hyde, co-owners of Provisions
Cover Story Top Entrepreneur

Benson Hyde and Bruce McAmis Make Provisions a Regional Success Story

Bruce McAmis, left, and Benson Hyde, co-owners of Provisions

Bruce McAmis, left, and Benson Hyde, co-owners of Provisions

 

Grape Expectations

Benson Hyde was a financial advisor who wasn’t enthralled with the firm he was working for or the direction his career was headed in.

Bruce McAmis was a lawyer who would have preferred to be doing … well, just about anything else.

That was years ago. In the intervening time, let’s just say their paths crossed (we’ll fill in the details later), and they are now co-authoring one of the more intriguing entrepreneurship stories unfolding in the region.

It’s called Provisions, a wine, cheese, and much-more store that now has three locations: in Northampton, where it all started, in Amherst, where the plot thickened, and, most recently, Longmeadow, where it thickened even more, with the opening of a location in the Longmeadow Shops just before the holidays. They would have preferred to open sooner, but … well, that’s part of the story.

Indeed, expansion has come quickly — more quickly than they anticipated when they first drafted a business plan that has been revised several times already — because opportunities have presented themselves. Seizing them hasn’t been easy, but they’re managing to take a promising concept and run with it, even in the middle of a pandemic, as we’ll see.

The concept? Hyde described it in a number of ways, but maybe this one works best: “people like to talk about fine wine; we like to say we’re all about fun wine.”

By that, he and McAmis meant wine that comes with stories, products produced in ways that resonate with a younger audience that is embracing wine perhaps more than generations before them.

“Our focus is on smaller producers with a story,” Hyde said, “and being able to provide service on a personal level — when someone walks in the store and wants a recommendation, or wants to hear about where a wine came from, or wants a pairing suggestion and an idea for what would make a great gift.”

“People like to talk about fine wine; we like to say we’re all about fun wine.”

Of course, this story is about more than wine. It’s also about cheese — or cheeses, to be more precise. It’s also about spirits of all kinds now. It’s also about making connections with customers and the community, and educating people about wine, not just selling it by the bottle or case.

And, of course, it’s about entrepreneurship and two people settling into that role after working for others and not really enjoying it, and desiring something else.

McAmis and Hyde look the part, and they also sound the part, using words and phrases that anyone who has gone into business for themselves — especially over the past several years — would use.

“It’s been quite a ride … high highs and low lows; it’s been an incredible learning experience,” said Hyde as he talked about everything from accelerated expansion to coping with a pandemic that forced them to find new ways of doing business and had both of them venturing out to make deliveries themselves.

McAmis echoed those thoughts as he talked about their venture. He actually uttered the words “it’s been fun,” and then retracted the statement. Well, sort of. He said it’s occasionally been fun, but mostly it’s been a stern challenge, one that has tested them in all kinds of ways.

The Provisions owners aim to satisfy an evolving market

The Provisions owners aim to satisfy an evolving market when it comes to how people buy wine, and who is buying it.

“I love it … I rarely, if ever, take a whole day off, but that’s part of being an entrepreneur, I guess,” he said. “It’s been intense, but rewarding on many levels.”

For their work to make Provisions a regional story, one with many chapters still to be written, Hyde and McAmis have been named BusinessWest’s Top Entrepreneurs for 2022. They continue a tradition of entrepreneurship in this region that goes back more than 300 years, and they join a distinguished list of previous winners of this award.

That list includes a college president, a hospital administrator, a public utility, the founders of several tech startups, many family-owned ventures, and several individuals and partnerships like the one forged by McAmis and Hyde.

For this issue, BusinessWest tells their story and, in the process of doing so, explains why they are more than worthy of this coveted honor.

 

Vintage Undertaking

They call it the ‘Provisions Dungeon.’

That’s the name affixed to the basement of the Northampton location, on Crafts Avenue.

And the name fits. It’s a large, cavernous space with several rooms of various sizes, all of them now crammed with wine and other products sold upstairs. The main area off the stairs was once a classroom where experts on wine passed on their knowledge to diverse audiences eager to learn more about this far-reaching, truly global subject. Now, that space has been given over to racks holding a wide array of spirits, with the classes held at the Amherst location.

“One of the important traits we’ve shown over the years is being responsive to what we’re facing. Whether it’s having to reshape everything because of the pandemic or with growth, it’s a matter of staying aware and staying flexible, and leaning into opportunities.”

Because the main floor is somewhat cramped, with little if any room for inventory, employees are constantly going back and forth to the basement, McAmis noted.

“We almost need to have extra staff on hand because everything that needs to be restocked is in the basement, and that means a lot of carrying cases of wine up the stairs,” he said, adding that the dungeon, where we talked with the two partners, is just one of the more colorful aspects of this evolving business.

Our story starts roughly 12 years ago, said Hyde, at one of the many dinners he enjoyed with his cousin, Alex Feinstein, founder of GoBerry, the recently closed frozen-yogurt store in downtown Northampton, and his wife.

Bruce McAmis, Benson Hyde, and Hyde’s wife, Toni DeLuca

From left, Bruce McAmis, Benson Hyde, and Hyde’s wife, Toni DeLuca, also the company’s wine and spirits buyer.

“He and I had become very close in the Boston area … he and his wife would cook me dinner, and I would bring the wine,” Hyde recalled. “When they got to Northampton, he called me up and said, ‘they could use a good wine shop downtown.’

“I was working in financial services for a company that I wasn’t thrilled to keep working for, so it was pretty easy to twist my arm and talk me into moving out here,” he went on. “I was inspired by his foray into small business.”

In collaboration with the Feinsteins and two other partners, Gordon Alexander and Nancy Baker, he opened Provisions on Crafts Avenue in November 2011. One of the first wine vendors he worked with was McAmis, who, as noted earlier, had a law degree but decided he didn’t want to make that his career. Instead, he ventured into the liquor-wholesaling business with a venture called Yankee Distribution.

After three years in business, Feinstein and Hyde were the remaining partners in the venture, and in late 2019, McAmis bought out Feinstein and became Hyde’s partner in Provisions.

“I thought that we could really grow the business and take some next steps,” said McAmis, adding that he became intrigued by the possibilities — and by Hyde’s determination to take the venture to the next level and scale up.

Those plans started to materialize quickly, but first — actually, at the same time — the business had to contend with the pandemic, which hit Northampton and its downtown, dominated by restaurants and clubs, extremely hard.

“We stayed open the whole time, but we weren’t open to the public, obviously,” McAmis recalled, adding that, like other ventures of this kind, Provisions relied on pickup and delivery, which constituted new, and expensive, ways of doing business that had to be learned and mastered.

“Main Street was a ghost town,” he said, noting that he was making many deliveries himself, and could see that Provisions, State Street Liquors, and a CVS were essentially the only businesses with lights on in that historically vibrant area.

The new Longmeadow location

The new Longmeadow location came about rather unexpectedly and before the partners were really ready, but they jumped on the opportunity.

Overall, the pandemic was a learning experience and test of the partners’ mettle, said Hyde, adding that, while business was brisk — sales ballooned during the pandemic for many different reasons — business was also much more difficult.

“We had to completely pivot our business model and completely rethink how we worked with customers and how we operated the entire store,” he recalled. “It was intense, and we made a lot of mistakes before we eventually got things ironed out.

“We were really lucky because we had attracted a staff that was really committed,” he went on. “I don’t think we could have done it if we didn’t have such a loyal and committed staff — it was extremely hard.”

 

Case in Point

But at the same time they were enduring the pandemic and its many challenges, the two partners were still thinking about expansion and that proverbial next level.

And, as noted earlier, that expansion has come about more quickly, and more profoundly, than they had anticipated in any version of that business plan, primarily because opportunities presented themselves, and they were determined to take advantage of them.

Previous Top Entrepreneurs

• 2021: Dinesh Patel and Vid Mitta, owners of Tower Square in Springfield
• 2020: Golden Years Homecare Services
• 2019: Cinda Jones, president of
W.D. Cowls Inc.
• 2018: Antonacci Family, owners of USA Hauling, GreatHorse, and Sonny’s Place
• 2017: Owners and managers of the Springfield Thunderbirds
• 2016: Paul Kozub, founder and president of V-One Vodka
• 2015: The D’Amour Family, founders of Big Y
• 2014: Delcie Bean, president of
Paragus Strategic IT
• 2013: Tim Van Epps, president and
CEO of Sandri LLC
• 2012: Rick Crews and Jim Brennan, franchisees of Doctors Express
• 2011: Heriberto Flores, director of the New England Farm Workers’ Council and Partners for Community
• 2010: Bob Bolduc, founder and CEO of Pride
• 2009: Holyoke Gas & Electric
• 2008: Arlene Kelly and Kim Sanborn, founders of Human Resource Solutions and Convergent Solutions Inc.
• 2007: John Maybury, president of
Maybury Material Handling
• 2006: Rocco, Jim, and Jayson Falcone, principals of Rocky’s Hardware Stores and Falcone Retail Properties
• 2005: James (Jeb) Balise, president of Balise Motor Sales
• 2004: Craig Melin, then-president and CEO of Cooley Dickinson Hospital
• 2003: Tony Dolphin, president of Springboard Technologies
• 2002: Timm Tobin, then-president of
Tobin Systems Inc.
• 2001: Dan Kelley, then-president of
Equal Access Partners
• 2000: Jim Ross, Doug Brown, and Richard DiGeronimo, then-principals of Concourse Communications
• 1999: Andrew Scibelli, then-president
of Springfield Technical Community College
• 1998: Eric Suher, president of E.S. Sports
• 1997: Peter Rosskothen and Larry Perreault, then-co-owners of the Log Cabin Banquet and Meeting House
• 1996: David Epstein, president and co-founder of JavaNet and the JavaNet Café

The first such opportunity came on King Street in North Amherst, with the opening of Bottle-O, what McAmis described as “an easy, in-and-out beer and wine store where you can grab some cheese.”

As for the expansion of Provisions, the two partners had long targeted Amherst and Longmeadow as the most logical communities to take their concept, and they started with the former, primarily because opportunities in Longmeadow are harder to come by.

Specifically, they started in North Amherst and the emerging Mill District, for which Cinda Jones, architect of that ambitious undertaking, became another of BusinessWest’s Top Entrepreneurs three years ago.

When Atkins Farms decided to leave its space in the sprawling mill complex, Jones approached Benson and McAmis about taking that square footage. They did, recognizing an opportunity to take the brand to a new area and a site that is rapidly becoming a destination because of its array of shops and eateries.

The Amherst location opened in November 2020, still the height of the pandemic, and there have been some growing pains due to COVID, the emerging nature of the Mill District, and the fact that the complex is somewhat off the beaten path.

“It’s taken a little bit of time for word to get out that we’re there,” McAmis said. “But we are growing; we’re seeing green shoots.”

Hyde agreed. “We believe in their vision; they have created a really cool space there,” he said, adding that a planned move to another location at the Mill District, amid an emerging ‘food cluster’ at the complex — with a brewpub envisioned for the space they’re currently occupying — will generate even better results.

As for the Longmeadow location, McAmis said it came about through some “dumb luck.”

Indeed, a space in the Longmeadow Shops next to Max’s restaurant became available, and McAmis noticed the listing while doing a random search for space in Longmeadow last spring.

“As soon as we walked in there, we realized that it was well-suited for what we were looking for,” he told BusinessWest, adding that, while the timing was not exactly ideal because of everything else they were dealing with, they decided to press ahead and get it done, knowing that such opportunities — in that town and in that location — do not come about often.

“Longmeadow happened maybe a year or two sooner than it would have in a perfect world,” he said, noting that the partners were still engrossed in making the North Amherst location work. “It just felt like a bit of a rush to us to contemplate that, but we also didn’t think we would get a better opportunity; not only is it in the Longmeadow Shops, it’s right in the heart of it — so we went ahead. And now that it’s open, I’m happy it’s open.”

Hyde agreed. “The consequences of not taking that spot were huge; I don’t think we would ever have found something that ideal,” he said, adding that the location is close to East Longmeadow and Northern Connecticut, providing an opportunity to introduce the Provisons brand to some new customers.

 

Taste of Success

When asked what might come next for Provisions, Hyde and McAmis looked at each other, laughed, and offered a collective sigh.

The body language and sound effects made it clear that they’re not contemplating additional expansion at this time, and are instead focused on settling in — in every aspect of that phrase.

Elaborating, they said they want to put their new locations on solid ground, build the brand, and, well … keep doing what they’ve been doing all along.

Specifically, this means listening to customers, responding to what they’re saying, and providing an overall product that is in many ways as distinctive as the various bottles and cheeses on the shelves.

“One of the important traits we’ve shown over the years is being responsive to what we’re facing. Whether it’s having to reshape everything because of the pandemic or with growth, it’s a matter of staying aware and staying flexible, and leaning into opportunities,” said Hyde, adding that this operating mindset has served the partners well to date, and it will continue.

“The focus is going to be less on expanding our footprint in the near term, and more on expanding services and making connections within the community,” he went on. “What’s important to both of us is that we not only have a good business, but our business is part of the community; we support our community, and our community supports us.”

Meanwhile, the partners plan to continue with that theme of providing not just fine wine — they do that as well — but also ‘fun’ wine and products with compelling stories.

And while doing so — and this is perhaps the most rewarding part — they’ve earned the trust of customers.

“That’s been a cool thing — developing those relationships, getting to know people’s palates, and building that trust,” Hyde said. “People will call up and say, ‘I trust you … pick out 12 bottles for me, and I’ll come pick it up.”

That’s an example of that flexibility he described, and being responsive to what a changing audience wants and needs in a bottle of wine and the store that will sell it.

“How people shop for wine has changed, and who is shopping for wine has changed,” he expained. “There are more young people interested in wine these days than when we first opened.”

McAmis agreed. “They’re younger, and they’re interested in learning about the products; it doesn’t have to be a lot of money, but there’s an emphasis on quality, not quantity,” he noted. “We have wines that come from family-owned estates and are natural or biodynamic, organic or sustainably grown — these are all important attributes for a lot of these younger consumers.”

Wine tastings, such as this one at the location in the Mill District in North Amherst

Wine tastings, such as this one at the location in the Mill District in North Amherst, are one way the company focuses on education and engaging its customers.

These attributes and others are explained at the wine classes staged at the Amherst store, said Hyde, adding that education remains a big part of the equation at Provisions.

“There’s usually a theme to these classes,” he explained. “We’ll take people to a region, for example; it’s everything from ‘Wine 101’ to how you taste wines, to deep dives on regions or grades or producers.”

Such classes — and tastings — continued through the pandemic via Zoom, he said, noting that producers brought attendees into their operations virtually. “Having that actual producer in their winery talking about the wine is a cool way to experience it,” Hyde said, adding that the partners are looking to add more of these types of presentations in the future.

“Generally, we want to keep our eyes and our ears open to what people are wanting, what spaces we can fill, and how we can keep ourselves different from the bigger package stores,” he went on. “We do have a big selection, but we’re geared more toward service than having a ton of product; we have well-chosen, curated, thoughtful, fun products.”

Such an attitude explains not only why these two are successful, but why they are BusinessWest’s Top Entrepreneurs for 2022.

Community Foundation’s New Leader Focuses on Equitable Economic Mobility

By
Features Special Coverage

Opening the Doors Wider

Community Foundation President and CEO Megan Burke

Community Foundation President and CEO Megan Burke

Megan Burke was taking a walk through downtown Springfield on a Sunday morning not quite a year ago, and found herself on Bridge Street, passing by the offices of the Community Foundation of Western Massachusetts (CFWM).

She stopped, looked in, and became immersed in what she was seeing, while also not quite believing her eyes.

“I looked in the conference-room windows, and I saw the papers lining the walls detailing their strategic-planning process and all their priorities for the next year,” she recalled. “And I actually took some photos, sent them to my boss in Hartford, and said, ‘look at how transparent the Community Foundation of Western Mass. is; we need to be more like this.’

“There were no secrets — they just put it right out there,” she went on. “I took pictures, I took notes … I said, ‘hey, they’re moving to the same database system we use, but more importantly, these are things they’re prioritizing for the community.’”

The ‘we,’ in this case, was the Hartford Foundation for Public Giving, which Burke was serving as director of Community Impact Grantmaking. The amazing transparency she observed that morning was and is just one of the things Burke admired about the Community Foundation of Western Mass., and which she had come to respect from afar — or not really that far at all, depending on your take; she’s a resident of West Springfield.

And that helps explain why, when the agency’s long-time president and CEO, Katie Allan Zobel, announced in the spring of 2022 (just a few weeks after Burke’s walk in downtown Springfield) that she would be stepping down at the end of the year, Burke became interested in the position, at the same time she was being recruited for it.

After several rounds of interviews, during which she would see and hear more things that impressed her, Burke was tapped to fill Zobel’s very large shoes, thus beginning an intriguing new chapter in a career marked by more than two decades of work in nonprofit management, philanthropy, fundraising, and advocacy, with a particular focus on equitable access to economic opportunities and human rights.

Her career has included work on issues ranging from advancing LGBTQ+ rights in a Latin American country, Nicaragua, to continuing efforts to ban landmines globally, to the challenge of leveling the playing field between those in urban and suburban communities in Northern Connecticut.

“I looked in the conference-room windows, and I saw the papers lining the walls detailing their strategic-planning process and all their priorities for the next year. And I actually took some photos, sent them to my boss in Hartford, and said, ‘look at how transparent the Community Foundation of Western Mass. is; we need to be more like this.’”

Summing it all up, Burke said it has been invigorating and rewarding work, which she is anxious to take to the 69 communities served by the Community Foundation of Western Massachusetts.

In a wide-ranging interview with BusinessWest just a few days after she began work in those offices on Bridge Street, Burke said her broad goal is to build on all that’s been accomplished over the past several years to take CFWM well past check writing and into a role as convener and catalyst for positive change.

“I really want to spend at least the next three months getting to know the folks who are involved in the Community Foundation and who’s not involved, and opening our doors even wider,” she explained. “And listening to people — I have a lot to learn. I think I bring a lot to the job, but I have a lot to learn from the community about what they think is important and what they believe we should be doing better.”

She said the Hartford Foundation has been able to mobilize resources and support efforts to more equitable economic and social mobility, and one of her goals is to amass similar forces and create momentum on that same front in Western Mass.

“In both Hartford and Springfield, and in pockets of the regions more generally, success for people is often more closely correlated to the zip code in which they were born than their own talents, creativity, and hard work,” she said. “And I think that’s where the experience I have is relevant to thinking about how we can change that together — not just the Community Foundation, not just our nonprofit partners or our donors, but all residents of the region.”

 

Questions and Answers

Burke recalls that it “almost felt like I was cheating.”

That’s almost.

In the run-up to the first of her interviews with CFWM for the president’s position last September, she noted that Zobel was the most recent guest on BusinessTalk, the weekly podcast hosted by this writer. She listened to the episode, not once but twice, and heard Zobel talk in vague terms about what might come next for her career-wise — and, in far more specific terms, about the many new programs and initiatives she and her staff introduced during her tenure, everything from Valley Gives to Valley Creates.

the windows of the Community Foundation offices on Bridge Street

Megan Burke was amazed by the transparency she witnessed when looking in the windows of the Community Foundation offices on Bridge Street. It’s a tradition she intends to continue.
Staff Photo

“It was such a helpful interview,” she recalled. “I was able to get a sense of what she felt was important and what she thought were some of the great successes here.”

Whether listening to the podcast had any impact on her performance during that interview is a subject for debate (Burke already knew a great deal about the Community Foundation, as we’ll see), but what isn’t — according to those doing the interviewing — is that Burke is a logical successor to Zobel, and this position is a logical next step for someone who has spent a career working to advance diversity, equity, and the inclusion of diverse perspectives.

It’s a career that has taken her from New York to Nicaragua to Hartford, and to remote-working opportunities long before they became the norm.

Our story starts with Burke — who earned her bachelor’s degree in political science at Wellesley and a master’s degree in international relations at Yale — working for the Ford Foundation in New York, where she served as program officer, U.S. Foreign and Security Policy, Governance & Civil Society.

In 2007, she and her family moved to Nicaragua for what she called “a different pace to her work” than what she found in New York. There, she worked first for the nonprofit Centro de Estudios Internacionales, where her efforts supported the emerging LGBTQ+ movement and the development of a nationwide campaign to advance human rights.

“My role was to support various representatives of the movement to create a platform for them to come together and establish some advocacy priorities and to really be a go-between with the funder to make sure of the direction it was moving in, and to really track the impact of the work,” she explained. “For me … I had not worked on that particular issue before; it was incredibly eye-opening. It was very humbling to be working in a second language and be the least articulate person in the room.”

“During my time there, we announced a new strategic focus on dismantling structural racism and promoting more equitable economic and social mobility. And while that work is by no means easy, it’s incredibly important, and I spent the past few years with a great team trying to figure out how to make that happen.”

Burke worked for the group for roughly three years, eventually transitioning to a new role with the Nobel Peace Prize-winning International Campaign to Ban Landmines. She started working as a researcher in Latin America — Nicaragua was a country impacted by landmines from the war in the 1980s — and eventually became executive director of the campaign.

She was still in that position when she returned to Western Mass. nearly a decade ago, eventually to ease herself out of that role — while also downsizing the organization, as more countries addressed the problem of landmines.

“It’s kind of nice to be involved in something where we could see steady progress and say we were working ourselves out of a job; it’s not often that you get to say that,” she noted. “Every year I worked there, the casualty rate declined.”

In some respects, leading a coalition to ban landmines is a world apart from work with a local foundation, she said, but in Burke’s estimation, the work is very similar.

“Sometimes people say, ‘how did you go from this international work focused on advocacy at the U.N. and traveling around the world to working for a local foundation?’” she noted. “My feeling on that is that every issue is a local issue somewhere, and what we were really trying to do at the international level is raise up local issues that were impacting people in mostly post-conflict countries, and get international attention to redistribute resources — not totally unlike what a foundation does to help those with the greatest need.”

 

Vision Statement

In 2017, Burke joined the Hartford Foundation for Public Giving as senior Community Impact officer, a position with a broad job description, one that included everything from work creating career pathways to efforts promote civic engagement through grants and training to increase voter engagement and participation in the 2020 Census.

In September 2020, she became director of Community Impact Grantmaking, leading the foundation’s strategic grantmaking — there was an annual budget of $25 million to $30 million — to advance equitable economic mobility and address systemic racism in Greater Hartford.

“During my time there, we announced a new strategic focus on dismantling structural racism and promoting more equitable economic and social mobility,” she explained. “And while that work is by no means easy, it’s incredibly important, and I spent the past few years with a great team trying to figure out how to make that happen.”

Not long after Zobel announced that she would be stepping down from her position, Burke received a call from a search firm to gauge her interest in the position.

It was quite high, she said, and for all the reasons she mentioned earlier — from the agency’s transparency with its goals and plans for the future, as evidenced by the uncovered windows facing Bridge Street, to its rapid and highly effective response to COVID, marked by a deep commitment to helping the region’s struggling nonprofits, along with many other successful programs in realms ranging from the arts to education.

Summing it all up, Burke said that, while she loved her work with the Hartford Foundation for Public Giving, the only thing she might like more is a chance to similar work closer to her home, something this opportunity at the Community Foundation provided her.

Still, while those on the other side of the interview table had questions for her, she had some for them, and the answers — especially with regard to a willingness to broaden efforts in the realm of equity — would ultimately determine whether this would be the right fit for her.

“I wasn’t sure where they were in terms of their own strategic vision to promote equity and opportunity,” she explained. “And I know that when you take on work like that, it’s important that everyone has bought in, feels that it’s important, and sees the value in that work.

“You never have a situation where every stakeholder is 100% all in from the very beginning,” she went on. “But from other areas of my work, I’ve seen what happens when there is great resistance, and it makes it really, really hard. I didn’t know if there was resistance, but I also didn’t know how much buy-in there was. So in many of my early conversations, I really tried to get a sense — ‘is there a serious commitment to moving this forward?’ And I got a resounding ‘yes’ from everyone I spoke to.

“It was clear that the commitment runs deep,” she continued. “And that excited me.”

Elaborating, she noted that, while Greater Hartford and Greater Springfield are different in some respects, they are similar in most, especially when it comes to disparities that exist between the urban centers and the more rural and suburban areas, and the manner in which those inequities impact opportunity.

“When everyone has an opportunity to fulfill their own potential, I think everyone wins,” she went on. “When people are held back due to the circumstances of their birth, I think everyone loses.”

Burke started at the Community Foundation on Jan. 18, the day of a scheduled board meeting. She joked that this would be the first and only time she would be at such a meeting with the primary mission of simply watching and listening.

Although she still has a lot of that to do in general, and with a number of different constituencies, she noted that she has already embarked on what she calls a “listening tour.”

Its underlying goal, as she stated earlier, is to enable her to learn about the region and the issues facing those living and working here and to generate some momentum on the broad issue of economic and social mobility and making it more equitable.

“We don’t plan to change our broader strategic vision — I think it’s a great vision,” she said. “And promoting equity and opportunity is not something that’s going to happen overnight; I think there’s a huge commitment to that, and I was brought on to help figure out how to make sure we can operationalize that as effectively as possible.

“I have to listen,” she said in conclusion, “and make sure I’m building on what’s already happening here that’s great.”

 

Bottom Line

When asked what she likes to do when she’s not working, Burke offered a hearty laugh as she said, “take walks in urban areas.”

She also likes to hike in more rural settings, partake in yoga, be a good ‘dog aunt,’ and keep up with friends scattered across the region and around the world.

What she really likes, though, is to work with others to address what she called “seemingly intractable problems” — meaning everything from inhumane weapons to access to healthcare and education for LGBTQ+ residents of Nicaragua to food insecurity for residents of Greater Hartford.

Throughout her long career, it has been her mission to take doors and open them wider to enable more to pass through. With her latest assignment with CFWM, the setting has changed, but that mission hasn’t.

Outgoing HCC President Makes Strides on Everything from Food Insecurity to … Pickleball

By
HCC President Christina Royal
Education Special Coverage

Looking Back — and Ahead

HCC President Christina Royal

HCC President Christina Royal

 

Christina Royal wanted to make one thing clear.

Her decision to step down as president of Holyoke Community College (HCC) later this year has nothing whatsoever to do the Great Resignation.

“The Great Resignation, to me, reflected people who were in various stages of unhappiness with their respective roles and looking for a change,” said Royal, the school’s fourth president, who arrived on campus in 2016. “I love this college, and I love my position.”

Elaborating, she said her decision is about finding the space to decide what she wants to do next, and at this point in time, she really doesn’t know what that might be, other than some travel (destinations still to be determined), planning her wedding, and what she calls “voluntary unemployment” until at least the start of 2024.

In a wide-ranging interview during which she looked back as well as ahead, Royal talked at length about the past three years, especially, and what it has been like, personally and professionally, to lead an institution like HCC through the pandemic. She said it was a tremendous, and exhausting, learning experience, one in which she and members of her team had to reach down and find the determination and imagination to see the college and its students, staff, and faculty through an unprecedented crisis, during which the school was mostly closed to the public for more than a year.

Indeed, while talking about the length of her tenure at HCC — which will be close to seven years by the time she steps down this summer — Royal jokingly asked if there is a “multiplier” for the COVID era, a roughly two-and-a-half-year stretch that probably seemed like it was exponentially longer.

She likened that period to another one in the school’s long history, a devastating fire that destroyed its one building in 1968. Royal told BusinessWest that she has read and heard a lot about those days, and she believes they were in many ways similar to what the college and its leadership endured starting that day in March 2020 when the governor shut down the state.

“The Great Resignation, to me, reflected people who were in various stages of unhappiness with their respective roles and looking for a change. I love this college, and I love my position.”

“I never thought that in my lifetime and during my tenure there would be another moment to rival that one, but the global pandemic did,” she said. “And being in a leadership capacity during such uncertain times, you tap all of the skills that you’ve developed over a lifetime to be able to learn and lead in such times.”

While efforts to lead the school through the pandemic have in many ways dominated her tenure, she said there have been many important accomplishments, especially in the broad realms of diversity, equity, and inclusion, as well as addressing student basic needs, ranging from food to housing to childcare.

With the former, she said the school has made significant strides, and on many different levels.

“We have really prioritized equity at all levels within our organization, including at the board level, with a statement on anti-racism, and also with the great work of our facility and staff. We’ve invested financial resources to grow our wrap-around support services for our under-represented students, and we continue to help all of our students be successful regardless of what their starting point is, who they are, and what their background is.”

With the latter, Royal, named a Woman of Impact by BusinessWest in 2020 for her work at the school and within the community (the two often overlap), said there have been some important and innovative steps forward, and several ‘firsts.’

Christina Royal meets with students

Christina Royal meets with students at the HCC MGM Culinary Arts Institute, which opened its doors in 2019.

These include the Homestead Market, at which HCC became the first institution of its kind in the Commonwealth to accept SNAP benefits.

“This was pretty significant — we had to get federal approval from the USDA to be able to accept SNAP benefits,” she told BusinessWest. “To be able to do that on a college campus is innovative and an example of how we listen to students and respond to what we’re hearing.

“Our students who found themselves food-insecure and receiving SNAP benefits said, in essence, ‘why can’t I use my benefits on campus?’” she went on. “And we said, ‘good question.’”

As for her own future and what the next chapter might be professionally, Royal said that is … still to be determined. And it may not be determined for a while yet. Indeed, while she has already received some invitations to look at opportunities, she is determined to take her time — and take at least the balance of 2023 off — and find the right fit.

In the meantime, she is focused on the remainder of her tenure at HCC, continuing the work that has been done there and preparing the school for a successful transition in leadership.

 

Court of Opinion

As she talked about what she and her administration have been able to accomplish over the past several years, Royal made sure she didn’t leave out pickleball.

Indeed, under her direction, and in response to the meteoric rise in popularity of the game — a combination of tennis, badminton, and ping pong — the college created several pickleball courts in the Bartley Athletic Center on campus.

“I was looking for something to burn off stress, and as a former tennis player, I really enjoyed the racket sports, and this is something that’s a little easier on my knees,” she said, adding that a former trustee of HCC turned her on to the sport. “We have seven courts here now, and the response from the community has been tremendous; people are calling and asking if we can expand the hours. I think we’ve really tapped into an outlet that people are looking for.”

Beyond pickleball, Royal can provide a long list of accomplishments and milestones that have happened during her tenure. It includes the college’s 75th-anniversary celebration in 2022— put off for one year because of the pandemic — as well as the 50th anniversary of the HCC Foundation; the opening of a new life-sciences building and the HCC MGM Culinary Arts Institute, located in a renovated mill in the city’s downtown; and extensive renovations to the Campus Center, which reopened just a few weeks before the pandemic forced it to go dark once again.

Beyond infrastructure and new academic programming, Royal said the biggest strides made at HCC have come in the areas of diversity, equity, and inclusion, and meeting those basic needs of students that she mentioned earlier.

As for meeting students’ basic needs, Royal said there have been many steps forward, perhaps none as significant, and symbolic, as the Homestead Market and the acceptance of SNAP benefits.

Today, other schools and other institutions are looking to follow suit, she said, and they are looking at HCC as a leader in what Royal called “hunger-free college campuses.”

“We’ve used this as an opportunity to be responsive to students, and also to be able to further our work with basic student needs,” she noted, adding that there was a prime motivating force behind the school’s perseverance in this matter: “it’s hard to educate a hungry student.”

“This has been an incredible journey … I think about how much I’ve grown in this role. I never imagined leading through such uncertain times, with a pandemic that few saw coming and for which there was no playbook.”

As noted earlier, meeting student needs goes well beyond food, said Royal, who has been at the forefront of many such efforts, from housing and internet service to an important recent addition to the portfolio: the President’s Emergency Fund, which is … well, just what it sounds like, a fund to help students in emergency situations.

They can apply quickly and easily, said Royal, and they get a response within 24 hours.

“We cut a check immediately,” she said, noting that funding for the program was set up through the school’s foundation and has grown through the support of alumni and other donors to the college, including faculty and staff. “If you’re experiencing an emergency, that means you don’t have weeks to wait for financial resources to come in. And this fund has made a huge difference.”

Overall, these various programs reflect an operating philosophy at the college that, especially in a community like Holyoke, students need more than the right mix of courses to succeed — however they might define success.

“When we started our strategic plan, we defined our basic needs as encompassing four key priorities — food insecurity, housing insecurity, housing, and childcare,” she explained. “And in the process of addressing those, we had a few others emerge over time, including mental-health support and digital literacy.

“We knew that, in order to really support students, not only through wrap-around services but particularly with other barriers to them successfully completing, we had to address these other basic needs,” she went on. “The public at large tends to think of colleges as needing to focus on academics and the curriculum in order to set up students for success, and that is certainly a key priority — we’re focused on having the academic rigor that can allow for students to transfer successfully to our four-year colleges and universities. And in doing so, we needed to set students up outside of the classroom for success, and that is helping to address the other barriers that sometimes hinder their ability to stay continuously enrolled.”

 

Forward Thinking

The decision to move on from this work and to the next stage of her career came at a time of great change and reflection in her life, said Royal, who turned 50 last summer, traveled to Bali with her partner for an extended vacation, got engaged, and, amid all that, started to think about what’s next.

“I didn’t necessarily want to leave HCC … it was more about creating space for me to expand and engage in some creative projects and simply have some space,” she noted. “This job is an intense job, and I wanted to give it its due respect. And as I turned 50, I thought, ‘here is an opportunity for the next chapter.’ But first, I wanted to have some space to figure out what that might look like. So I didn’t want to rush into something; if I wanted to move into another presidency or another CEO position, I could have easily done that, but I wanted to focus on HCC.

“I’ve had a lot of opportunities come my way, but it felt too soon to commit myself to something else because I wanted to take a break,” she went on. “And that’s very important to me; I’ve been running hard for a number of years.”

Indeed, she has, with the pandemic years, especially, testing her in ways she could not have imagined. And they have left her reflecting on how those years have changed education, the world, and, yes, what she wants to do next.

“I’m a very intentional and reflective leader, so I make this shift with a great deal of intention around creating space for reflecting on this extremely unique and significant period in our lifetime — at least in my lifetime,” she said. “This has been an incredible journey … I think about how much I’ve grown in this role. I never imagined leading through such uncertain times, with a pandemic that few saw coming and for which there was no playbook.”

With that, Royal returned to 1968 and that fire that forever changed the college, and drew some direct comparisons to how the two disasters, more than 50 years apart, forced leaders to challenge themselves — and others — to find answers to complex problems.

Indeed, there were large amounts of learning and leading over the past three years or so, she went on, regarding everything from teaching from a distance — and supporting students at a distance — to simply reopening the college when the conditions allowed.

“It made me a better leader, and it certainly took a lot out of me,” she said of that period, adding that such experiences help explain why a large number of college presidents have moved on from their jobs in recent months, and more have announced intentions to do so.

For Royal, the pandemic provided large doses of perspective on what she could do next — and should do next.

“I feel excited for the next chapter, I feel excited about the possibilities, and perhaps something the pandemic did for me was invite me to expand those possibilities in my imagination of what can come next,” she said. “It was one of the most palatable reminders of just how short life is, and that in the blink of an eye, we’re dealing with an international crisis and health threats that were unprecedented in my lifetime.

“All that had a significant impact in shifting my perspective on what I want to do with the second half of my life,” she went on, adding that she won’t get around to figuring that out for a while.

After all, she still has a college to lead.

As Employers Fret over Remote Work, Hybrid Schedules May Be Here to Stay

By
Employment Special Coverage

Home Sweet Home

Make no mistake, Meredith Wise says — employers miss those bustling offices where all their employees used to come to work.

And after almost three years of remote work — during which the practice evolved from a temporary necessity to a ubiquitous reality — businesses are definitely grappling with what it all means, and whether they can slow the remote train down.

“A lot of businesses would like to have people back in the office,” said Wise, president of the Employers Assoc. of the NorthEast. “They’re struggling a bit with communication, with employee relations, and with staying in touch with people and knowing what’s going on with them.

“The idea used to be that people would come in, and you’d get a sense of how their night went, how their morning was going,” she added. “With Zoom communications, you just don’t get that same feeling. A lot of companies are feeling like they’re losing that personal connection with employees.”

Even some of the largest employers feel that way, as Walt Disney Co. workers found out in a recent internal memo from CEO Bob Iger, who is calling on all workers to spend at least four days a week in the office, starting March 1.

“In a creative business like ours,” Iger wrote, “nothing can replace the ability to connect, observe, and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”

Still, Wise noted that many local companies seem to be moving in the opposite direction, by continuing to embrace hybrid schedules. “They’ve found productivity can be better when working from home remotely, where people don’t have any of the distractions of being in an office, and I think that hybrid model is going to stay.”

Amy Roberts, executive vice president and chief Human Resources officer at PeoplesBank, agreed.

“A lot of businesses would like to have people back in the office. They’re struggling a bit with communication, with employee relations, and with staying in touch with people and knowing what’s going on with them.”

“We implemented a flexible work-arrangement policy in the midst of COVID, and we still have a lot of people working hybrid, with some time in the office and some time working from home,” she told BusinessWest. “It really depends on the area a person works in and what the business needs are. We have a couple fully remote workers; we actually hired a person out of Illinois who works fully remotely.”

Like Wise, Roberts said it’s easy to see why remote work is appealing, from the elimination of commuting time to creating a focused work environment. “I think the flexibility of it is really helpful to people in terms of work-life balance. Or they might say, ‘I really need to get X done, and doing this particular work is best done when I’m home, so I can focus more.’”

Roberts said many companies are starting to pull everyone back into the office — especially businesses that stress a collaborative culture or require plenty of face-to-face work with customers — but not all. “I do think the hybrid model is here to stay, though I don’t think it works for everyone.”

Seth Stratton, managing shareholder with Fitzgerald Law in East Longmeadow, noted that, like many small businesses, his firm never fully left the office during the pandemic, and these days, everyone has been back for some time. But they have continued to use communication tools, like Zoom, that became popular when employees at most companies were at home.

“We were forced to embrace some technology and ways of working that carried over and make work more flexible, even though we’re back in the office.”

Stratton understands the value of remote work in some situations, drawing on examples from his own career.

“During the peak of the workday in the office, there are a lot of interruptions, and a lot of times, when I’m focused on revising a lengthy contract or drafting a legal brief to submit to court, I need time to focus mentally on what I’m doing, so historically, a lot of that will be done early in the morning or later in the evening, after the phone stops ringing,” he said, noting that working from home can create more time and space for such work.

Seth Stratton

Seth Stratton says remote work can reduce distractions, but also hinder communication and collaboration.

On the other hand, someone in a home office can’t just walk into the next room to tap someone else’s expertise.

“You can do that remotely, but it’s harder to get on the cell or set up a Zoom meeting; it’s not as seamless as walking 10 feet away. That affects you from a collaborative standpoint.”

And collaboration happens outside the office, too.

“In Western Mass., probably moreso than other markets, when it comes to business generation, marketing, and client development, this is a parochial business community; a lot of business is conducted through personal relationships, personal connections,” Stratton explained. “I might be having lunch at the Fort or at Nadim’s and see someone I know — ‘oh, I’ve been meaning to call you; let’s schedule a call. Or do you have a minute now?’

“It’s harder to make those connections when you’re fully remote,” he went on. “Being available, I think, is a hallmark of business development in Western Mass., at least in my experience.”

 

Successful Experiment

While it may have eventually surprised employers how effective their teams could be at home, Wise recalled the challenge of those first few weeks in March 2020.

“When it first started, nobody really had the computer setups or the communication tools to be able to work remotely from home,” she said. “Now, people are more able to work at home and be productive.”

These days, “while we have found some companies saying, ‘we want all employees in the office Monday through Friday,’ those are few and far between. Instead, what a lot of employers are saying is, ‘you know what your job requires; work with your manager on what days you need to be in the office and what days you can work at home.’”

As a Baby Boomer, Wise said, she understands the old-school mentality of employers who have always been able to see their employees at work, and may be hesitant to give that up.

“It can be a hurdle to get over that perspective that ‘I can’t see you, so are you working?’ Part of the communication piece is doing a better job as organizations to define productivity and what needs to happen on the job. And it’s been good for leaders and workers to tighten up some of the parameters — ‘you know what’s expected of you, and you and I need to set that ahead of time, because things can easily get out of hand if you’re not here every day.’”

It makes sense to put those parameters in writing, said John Gannon, a partner with the law firm Skoler Abbott in Springfield. “The accountability policy needs to be clear. I’ve seen policies that say, ‘we need to see proof that your children are in daycare.’ I’m not sure if I’d recommend going that far, but certainly the supervisors need to be paying attention to their employees when they’re home.”

Zoom meetings help, he said, but employees are still unmonitored for the vast majority of the workday. Some companies have even installed technology on home computers that logs keystrokes per hour.

“If they have employees working remotely, even in a hybrid fashion, in another state — which is not uncommon given Springfield’s proximity to Connecticut — they have to be cognizant of which state’s employment laws apply.”

John Gannon

John Gannon

“I don’t like that, personally,” Gannon went on. “But it’s an option for employers if they have concerns that the hybrid model results in less productivity. I wouldn’t recommend it unless an employer is having problems, because it is a privacy issue, and a lot of this comes down to trust; you want to trust your employees, and you don’t want to set up a model that says you don’t trust them.”

Wise has heard of keystroke monitoring as well, and said most employers in this region aren’t looking to go there. But they’re also still in an experimental stage when it comes to remote and hybrid schedules.

“A lot of organizations are still feeling this out — ‘let’s try this for six months; I know we did it during the pandemic, but let’s try it in the new year and see if it works out, or whether we need to make adjustments to it.’ Handbooks and policies are still catching up.”

And if employers have employees working remotely in a different state, Gannon added, they need to update that handbook to make sure employees in those states are getting a handbook with laws applicable to that state, and also make sure the company is registered to do business in that state.

“If they have employees working remotely, even in a hybrid fashion, in another state — which is not uncommon given Springfield’s proximity to Connecticut — they have to be cognizant of which state’s employment laws apply,” he explained. “If they’re working from home three or four days a week and coming in one or two days a week, their primary office is their home, and if that’s in Connecticut, they’re subject to Connecticut employment laws and Connecticut employment taxation.

Those laws touch on everything from paid family medical leave and sick time to injuries on the job.

“It may sound crazy, but you may have to address workers’ compensation,” Gannon said. “If you’re walking down your stairs in the morning to go to your home office, that’s not covered, but in your home office, if you fall out of your chair and hurt yourself, that may be covered.”

 

Losses and Gains

Roberts agreed that there’s an interesting dynamic at play now, with some employers worried they don’t have eyes on their employees, while others fret about losing office culture and the ability to keep workers engaged.

“How do they know if they’re happy, if they’re productive, if they’re getting what they need from their career development? If you don’t see them all the time, how do you mentor? There’s a lot of questions managers are grappling with when it comes to this new style of work.”

That said, employers who embrace remote and hybrid schedules are able to cast a wider net in recruitment, at a time when talent is difficult to come by.

“We’ve been able to advertise positions as hybrid, which certainly brings more candidates our way,” Roberts said. “People are looking for that flexibility, and if you’re able to offer a fully remote situation, you can hire someone from anywhere; you have the ability to get the best available talent. Unfortunately for us, a lot of our positions are hybrid or in the office or banking center; we don’t have the luxury of large companies that are fully remote — but we’ve increased the candidate pool for sure.”

Stratton said the tools of remote business has helped his firm expand its client base beyond Western Mass.

“It allows us to reach out geographically with clients because clients are used to working by Zoom meeting and don’t feel that same compulsion to meet in person that they used to,” he said. “That’s given us more flexibility to actually grow our footprint a little more.”

And grow it into regions where legal services cost more than they do in the 413, he added. “We always had a pricing advantage over areas like Eastern Mass. and Southern Connecticut, and we can more easily use that pricing advantage to our benefit by expanding our footprint and working farther outside Western Mass.”

Though hybrid work may be here to stay, Stratton said, most of his firm’s clients are small to medium-sized businesses, and the majority of them have emphasized getting workers fully back in the office, though some are embracing hybrid work schedules and remote-work tools.

“A lot of large, national corporations, you see fully remote, where a lot of their workers are in different offices anyway, so it’s less impactful to be spread out,” he added. “But small to medium-sized businesses in this area, in my experience, are generally pushing toward being back and find it more effective, which is consistent with our experience as a small business.”

There’s no one-size-fits-all model, however, and Roberts said everyone is still grappling with the new work styles and how to make them effective.

“We need to figure out how to mourn the loss of the old way and transcend to a new way of working. It’s not the same as it was 15 years ago, maybe even 10 years ago, where you were identified by the office you worked in, and you had celebrations and events, things happening there. It’s different now; people are looking for a different way of working, and employers have to think differently.”

As Competition Depresses Profits, What’s Next for the Cannabis Industry?

By
Michael Kusek
Cannabis Special Coverage

After the Green Rush

The numbers are impressive, to be sure.

Adult-use cannabis shops in Massachusetts posted close to $1.5 billion in sales in 2022, up from $1.33 billion in 2021. Since recreational sales began in late 2018, the total figure is closing in on $4 billion.

That’s a big pie.

The problem, for the hundreds of dispensaries already open and many more at various stages of planning and development, is that each slice of that pie is getting smaller. As a result, prices are crashing, with some products selling for half of what they did a year or two ago.

That’s great for cannabis consumers. For businesses? Not so much.

But it’s not an unexpected development, not is it any sort of crisis, said Michael Kusek, publisher of Different Leaf magazine and one of the nation’s leading experts on the cannabis industry. But it’s certainly a challenge, one that promises to weed out some of the current players.

“You can’t solve the overabundance of product in the marketplace by transferring it to another market,” Kusek told BusinessWest. “You can’t make the product go away, so the price bottoms out. This has happened in every other market, so it’s not a shock.”

It will, however, require business owners to think smarter, focusing on quality, the customer experience, and other ways of differentiating themselves in an increasingly crowded marketplace. And the situation already has municipalities revisiting old concerns about a saturated market.

Northampton, where one of the city’s 12 dispensaries, the Source on Pleasant Street, recently closed, is the most notable case, as its City Council voted 6-3 last month to cap the number of retail cannabis shops at 12 going forward.

At press time, Northampton Mayor Gina-Louise Sciarra said she would not sign off on the cap, but with a two-thirds vote of the City Council needed to overcome any veto, the measure will likely still become law.

“We are not anti-business,” Councilor Marianne LaBarge said before the vote, as reported by the Shoestring. “We have a job, and we have heard from so many people to place a cap.”

Some residents at a hearing days before the vote expressed concerns about the impact of so many cannabis shops on the city’s youth, while councilors like LaBarge said they want to protect existing businesses from being crowded out.

Council President Jim Nash, one of the dissenters, said he favored a cap when recreational cannabis first became legal, but now believes the maturing marketplace is providing a natural cap, as evidenced by the Source’s closing and declining sales at other shops. He argues as much in a recent column in the Daily Hampshire Gazette, co-written with former City Councilor Dennis Bidwell.

“Since when does local government step in to protect the bottom line of existing businesses by excluding the entry of competition?” they wrote. “We don’t do that for beauty salons or pharmacies or anything else. It’s one thing to put a cap in place in the early stages of an industry’s development, before anyone has opened their doors. It’s another thing entirely to enact a cap that would freeze the market where it is, prohibiting further competition.”

What isn’t up for debate is that it’s getting tougher to turn a profit in an industry that’s already taxed about 70% and can’t claim many normal deductions. That reality, plus an ever-more-competitive marketplace, both inside Massachusetts and from surrounding states, is creating an environment that’s not unexpected for those who have followed the industry’s maturation in other states.

“So many people think, ‘if I get a license, I’m going to be a kajillionaire.’ Sorry, that’s not the case. If you’re in it because of the money, it’s going to be a tough road for you.”

People like Meg Sanders, CEO of Canna Provisions in Holyoke and Lee, who was in Colorado when that state, one of two, along with Washington, to pioneer legal adult-use cannabis in 2012, experienced its own ‘green rush,’ with a quickly saturated market causing prices to plummet. What Massachusetts cannabis businesses need to do, she said, is to focus on differentiating themselves in the right ways (see story on page 35).

“I think it’s going to be a painful year, but a necessary year. Honestly, it’s important,” she said. “So many people think, ‘if I get a license, I’m going to be a kajillionaire.’ Sorry, that’s not the case. If you’re in it because of the money, it’s going to be a tough road for you. We believe money is a byproduct, not a goal. We believe in running a good business, a responsible business, serving customers thoughtfully and respectfully and providing an amazing experience with lots of options on the menu. A cannabis purchase should be fun.”

Certainly more fun than selling the product at a time when economic realities in the industry are dramatically shifting.

 

Growth Potential

There’s no doubt that legal cannabis has been a boon to not only sellers, growers, and manufacturers, but to state and local coffers. Massachusetts imposes a 10.75% excise tax on purchases, while recreational cannabis purchases are also subject to the state’s 6.25% sales tax, and most municipalities levy 3% more.

David O’Brien, the president of the Massachusetts Cannabis Business Assoc., recently told the Boston Globe that the industry will remain strong despite its current challenges.

“Legalization has brought about change people can see. You can see it in the tax revenue, in the jobs that have been filled, in the dispensary storefronts that used to be empty, in the old warehouses that now host manufacturing companies — it’s all growth, it’s all progress, and the sky did not fall.”

Michael Kusek

Michael Kusek says the cannabis industry’s tightening profits are a natural evolution that has occurred in other states.

As for those jobs, about 22,000 workers were authorized by the state to work at licensed cannabis facilities as of December, making it an attractive field to enter, Kusek said. “Once they get a little experience under their belt, they’re infinitely more marketable. Head growers are making $100,000 to $120,000 a year.”

The problem, he noted, is that players coming into the market now are dealing with product prices that are much different than when they established their first business plans. And the regulatory hoops remain challenging in many cases, as is the decision of where to locate: in a community with limited licenses that are difficult to secure, or a community with a more laissez-faire approach, but also, as a result, much higher competition?

“I just talked to a couple of lawyers, and they’re not working as many licenses as they were two years ago,” Kusek said, and there could be several reasons for this, foremost being access to capital, which is still limited because most banks won’t lend for cannabis enterprises.

“If they can’t access capital, they’re forced to shoulder the ups and downs of the industry by daily revenues,” he added. “If you open a successful restaurant and want to open a second location, you can go back and get a loan to do that. If you want to open a second cannabis location to sell all this product you have, you can’t easily do it.”

“Regular businesses still get normal deductions, but we can’t deduct anything except the cost of goods. That creates a real challenge for overall profitability and cash flow.”

Meanwhile, cannabis investors in the Northeast are increasingly looking to what Kusek calls “the shiny new object” — New York, where shops started selling legal recreational cannabis just a few weeks ago. “That’s where the capital is going, which starves out the businesses we have here.”

And when capital dries up, it’s the mom-and-pop entrepreneurs that suffer, as well as social-equity candidates.

“The companies that operate in multiple states have more of a cushion; they can continue to roll forward,” Kusek said. “Who’s going to get hurt by this [competition]? People who have been trying to get a license for a long time. This just makes it harder for them if they didn’t get more of a leg up in the beginning.”

Sanders said the businesses that survive, both those currently operating and those just setting up shop, will be those that “hunker down a little bit and are super thoughtful with every dollar.”

“This is a business that has zero deductibility, except the cost of goods,” she added. “We have to be way more careful than any other business going through this recession. Those regular businesses still get normal deductions, but we can’t deduct anything except the cost of goods. That creates a real challenge for overall profitability and cash flow.”

Without examples from other states to consult, Sanders recalled, Colorado was immediately saturated, prices cratered, and the market became what she called “a race to the bottom,” with price trumping everything. “But as things got more sophisticated in Colorado, a lot of good operators started telling compelling stories about why you should spend money with this dispensary rather than that dispensary.”

That’s why she focuses on the stories behind Canna’s products and also on giving back to the communities in which she operates.

“Businesses need to be as lean as possible and as thoughtful as possible, and make sure you’re telling a compelling story about why people should buy your brand.”

 

Legitimate Concerns

In their recent column, Nash and Bidwell argued that public-safety and public-health concerns that motivated discussion about a cap on dispensaries in Northampton five years ago have not come to pass.

“There is, and always will be, an underground market for unregulated, uninspected marijuana. This black market is fraught with crime and suspect product,” they wrote. “The availability of legal marijuana puts a dent in this market, tilting the share of sales toward legal purchase rather than black-market ones. To the extent the market allows, additional regulated cannabis retail outlets will further reduce the use of unregulated, dangerous cannabis.”

And falling prices in legal shops may entice many long-time black-market customers to try different types of strains and products, Kusek said. “As prices come down, people will try and buy more. This is great for consumers; in some circumstances, it costs half of what it did. For consumers, that’s great.”

That’s even more true for medical users, he added, as they tend to be more price-sensitive than recreational users, since they often have to maintain regular usage with finite resources, since insurance won’t cover the product.

“This is still a young market, and consumers are still developing their preferences. It’s only been a couple of years, and people will develop brand loyalty and particular consumption methods, and they will spend their money to get those particular brands or products.”

Kusek agreed with Sanders that product quality is important, especially as consumers are still discovering what they like.

“This is still a young market, and consumers are still developing their preferences,” he told BusinessWest. “It’s only been a couple of years, and people will develop brand loyalty and particular consumption methods, and they will spend their money to get those particular brands or products. That will come over time.”

Kusek also believes the consumer base has room to broaden.

“People become cannabis consumers for a wide variety of reasons. We have a medical market and people for whom cannabis is a significant part of their medical treatment, and you have more people coming into the market and exploring cannabis for treating pain and sleeplessness. Those people are always going to be coming into the market, as well as people who are curious about it.

“I think one of the challenges in cannabis is connecting and finding consumers; with each new market that comes online, you get the people who are curious, or who are coming back to cannabis after not using it for a long time, people whose life circumstances have changed. There will always be new consumers.”

In other words, it may be a tougher business to navigate than when there were only a few dozen shops open in Massachusetts, but it’s still a dynamic field.

As Kusek put it, “it’s never dull, that’s for sure.”

The Employee Retention Credit and You

By Contributor
Features

Determining Whether a Business Qualifies Can Be Complicated

By Scott Foster & Jacob Kosakowski

 

Scott Foster

Scott Foster

Jacob Kosakowski

Jacob Kosakowski

Business owners have been bombarded recently with solicitations from firms offering to help them realize millions of dollars through the IRS’s Employee Retention Credit (ERC) program, which was included in the CARES Act adopted in the early phases of COVID-19. The CARES Act also contained the popular, and well-documented, Paycheck Protection Program (PPP), with forgivable loans that kept many businesses afloat.

Originally, if a business received a PPP loan, it was not eligible to receive ERC. The initial IRS guidance on this could not have been more clear: “an employer may not receive the Employee Retention Credit if the employer receives a PPP loan that is authorized under the CARES Act. An Eligible Employer that receives a PPP loan, regardless of the date of the loan, cannot claim the Employee Retention Credit.”

However, subsequent legislation, namely the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020; the American Rescue Plan Act (ARPA) of 2021, enacted March 11, 2021; and the Infrastructure Investment and Jobs Act, enacted Nov. 15, 2021, greatly expanded eligibility for ERC.

While some of these firms are offering legitimate services and will help businesses file accurate and legitimate claims for ERC, business owners should proceed with extreme caution due to several factors: the very complex rules regarding eligibility for an ERC, the IRS’s near-automatic acceptance of these filings (and payment of the credit, of which the firm usually collects 25% or more), the very strong likelihood that these filings will be audited in years to come (the IRS has up to five years to audit ERC returns), and the equally strong likelihood that the less-reputable ERC firms will have closed their doors and have liquidated all assets before those audits are completed, leaving the business holding the proverbial bag for tax penalties, fines, and interest.

“Perhaps the most complicated facet of determining eligibility under ERC relates to how its provisions interact with the Internal Revenue Code’s special aggregation rules for businesses.”

The IRS issued a warning on Oct. 19, 2022, stating that some firms “are taking improper positions related to taxpayer eligibility for and computation of the credit.” The IRS warning goes on to explain that firms “often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business’ federal income-tax return must be reduced by the amount of the credit.”

Determining whether a business qualifies for ERC can be quite complicated. If the business was fully or partially suspended due to a governmental order limiting commerce, travel, or group meetings related to COVID, then it may qualify for the time during which it was so suspended. If the business was not suspended but suffered a “significant decline in gross receipts,” it may also qualify. A significant decline in gross receipts is measured on a quarterly basis, comparing 2020 quarterly receipts to 2019 quarterly receipts (50% or greater decline), 2021 quarterly receipts to 2019 (20% or greater decline), or Q4 2020 receipts to Q4 2019 receipts (20% or greater decline).

Perhaps the most complicated facet of determining eligibility under ERC relates to how its provisions interact with the Internal Revenue Code’s special aggregation rules for businesses. Under the aggregation rules, multiple businesses may be combined into an ‘aggregated group’ based on common ownership, where all employees of an aggregated group will be treated as employed by a single employer. The members of an aggregated group are determined based upon the stock or membership interest ownership of a business entity. If multiple businesses are comprised of similar ownership, those businesses might be combined into an aggregated group.

The ownership of a business might be comprised of individuals, trusts, partnerships, or corporations. The ownership composition of a potential aggregated group must be closely examined because the aggregation rules and thresholds will differ based on whether the group consists of corporations, LLCs, or partnerships. Further, the relationship of individuals to one another will also impact how the aggregations rules operate.

By way of example, imagine three individuals: Alice, Brady, and Carol. Each own a one-third interest in each of Alpha LLC, Bravo LLC, and Charlie LLC. Under the aggregation rules, the three LLCs would form an aggregated group, known as a ‘brother-sister controlled group,’ based on their common ownership structure. All employees of all three LLCs would be treated as employed by a single employer. As another example, now assume that Alice and Brady own a one-half interest in Alpha LLC, Brady and Carol own a one-half interest in Bravo LLC, and Carol and Alice own a one-half interest in Charlie LLC. Under the aggregation rules, none of the LLCs would form an aggregated group with each other because any potential aggregated group would not meet the requisite ownership threshold requirements.

An aggregated group will impact how the members of such group are treated under the ERC provisions. Most notably, the aggregation rules affect the determination of a business’ average number of full-time employees, as well as what constitutes a ‘significant decline’ in gross receipts among members in an aggregated group. The aggregation rules also impact how suspensions due to governmental orders are enforced among members of an aggregated group. Businesses should consider carefully examining their ownership compositions so beneficial business aggregations are not missed.

And remember, if it sounds too good to be true, it likely is.

 

Scott Foster chairs Bulkley Richardson’s Business/Finance Department, and Jacob Kosakowski is an associate in the firm’s Trusts & Estates Department.

Webber & Grinnell Insurance Maintains Its Local Focus

By
Bill Grinnell
Banking and Financial Services

Policy of Partnership

 

Bill Grinnell

Among other reasons, Bill Grinnell says Webber & Grinnell joined with the Alera Group because of its commitment to the agency’s local focus.

Bill Grinnell says last year’s move by Webber & Grinnell Insurance to become part of the national Alera Group hasn’t changed much about the agency’s business model or its relationships with clients. And that was the idea.

“We’re still managing the agency locally here in Northampton and Holyoke,” said Grinnell, the agency’s longtime partner. “It’s still basically the same crew we had before, outside of some normal turnover.”

So why the move to Alera?

“I turned 60 last year, and we’re looking toward the future of perpetuating the agency and continuing to grow it, so we began looking for partners to help us perpetuate that moving forward,” he said. “We talked to 10 to 12 overall, and Alera, hands down, was the one group that really fit all our needs, and thus we became part of the Alera Group.

Partner Mike Welnicki, who specializes in employee benefits, explained why Alera stood out.

“Our area is a tight-knit business community, and we knew, if we joined a firm that wanted us to rebrand right away, to maybe move our offices or join up with other companies and really change the way that our model worked, we were going to lose that small-business feel in Western Massachusetts,” he said. “What Alera told us was, ‘we’re going to give you all the resources both regionally and nationally, but you’ve been successful for over 100 years; keep running your business the way you run it, and we want to be part of that.’ That’s really what made Alera stick out immediately.”

“What Alera told us was, ‘we’re going to give you all the resources both regionally and nationally, but you’ve been successful for over 100 years; keep running your business the way you run it, and we want to be part of that.”

What has changed, Grinnell said, is the breadth of resources Webber & Grinnell can now access.

“Our business is split three ways: personal lines, commercial lines, and employee benefits. Alera has a group of other property-casualty agencies, other employee-benefit agencies, across the Northeast. And we’re on the phone or in meetings just collaborating with them all the time. For example, we might get an opportunity to work on a risk, but we might not have the expertise or experience to enable us to write that risk, but another Alera agency might specialize in that market niche. So we’re able to tap into their expertise, into their markets. It just brings extra insurance minds and experience to the table in addition to what we had already at Webber & Grinnell.”

Mat Geffin

Mat Geffin says Webber & Grinnell has been consistently growing both organically and geographically.

Jenna Duval, Commercial Lines manager at Webber & Grinnell, said Alera’s values also lined up with the local agency. “That’s where it was an easy sell with my team to get behind Alera; they really do work in a collaborative spirit, and they work with each person to make sure those individual needs are being met, and it’s not just the big corporate feel of one company. We run as an individual branch with that collaborative spirit, and it really does make a huge difference with morale; everybody is on board with it.”

Beyond the new affiliation, Webber & Grinnell has been growing both organically and geographically, said Mat Geffin, another partner. He was on Cape Cod when he spoke with BusinessWest, an example of how the agency’s reach has spread.

“Our roots are in Western Mass., and that’s where the bulk of our business is, but we get pulled into clients all over New England, just because of our approach, the way we work with clients, and the value they get from it. From an organic growth standpoint, year over year, I want to say we’re always consistently growing in that 8% to 10% range, some years bigger, some years smaller, but we’re consistently growing, and most of it is referral-based business. And I think it’s because of the consultative approach we take to this business, which clients really appreciate, and it differentiates us quite a bit.”

 

Threat Assessment

That approach ensures that clients understand all their risks and exposures so they purchase the right policy, but it goes much deeper than that, Geffin said.

“We get really involved in the client’s business. Of course, we have a huge personal-lines operation as well, home and auto, but speaking from the commercial side of the house, it’s about being a part of their business, being on their team — understanding what they do operationally and how that translates to risk management, rather than just looking at it purely from the standpoint of coverage and insurance and quotes.

“Any agency can just quote a bunch of policies; that’s the basic part of the job,” he went on. “But how do you understand their operations, their culture, their level of employee engagement, and how that translates to risk and risk management? That’s the difference. And I think that’s what clients value about what we do.”

Welnicki said Webber & Grinnell wants clients to see the agency as a key employee in their firm.

“You need to evaluate what revenues we’re receiving as your broker and decide, are we worth it, just like any other key employee? If we’re not, then we’re not the right fit,” he explained. “We really want them to view us as an important resource of their business, and that’s why our retention rates have been in that 97%, 98%, 99% range year after year, to help us achieve that 8% to 10% growth.”

“We’re consistently growing, and most of it is referral-based business. And I think it’s because of the consultative approach we take to this business, which clients really appreciate, and it differentiates us quite a bit.”

Risk is always evolving, Grinnell said, most notably in the cyber liability realm. Since major breaches like

Bill: It’s always evolving. The biggest new coverage that emerged in the last five to eight years is cyber liability, and even that started off really as a coverage to protect your data. The TJ Maxx breach in 2007, which compromised the data of 94 million customers, and other breaches that followed have spurred companies to get on board with protecting their data.

“And that’s evolved even more; the bigger exposure now is extortion, where cyber thieves are coming in and shutting down your entire computer system and saying they want to be paid $100,000, $200,000, $500,000, or you’ll never log into your computer system again,” Grinnell said. “Not only is the coverage new, but how you’re selling it and what the exposures are have changed.”

So has the reporting employers have to do now because of the Affordable Care Act and a host of other regulatory entities, Welnicki said.

“You’ve got human-resource folks wearing 19 different hats, and controllers, CFOs, and business managers trying to do the HR functions. Part of our job is help support human resources, make sure they’re in compliance with the DOL and IRS and ACA. So many of our clients really don’t have that classically trained human resources professional, and that’s where our team, not only locally but with Alera nationally, can help them make sure they’re in full compliance.”

On the residential side, customers need to understand what their policies cover as well, Grinnell said, while insurance carriers are insisting on certain levels of protection these days, especially in coastal regions or other areas vulnerable to catastrophic weather, “because the cost of claims has just skyrocketed.”

 

Creating a Culture

Webber & Grinnell’s relationship with clients even extends to conversations about workplace culture, which is key to employee retention, especially at a time when businesses are struggling with that.

“We practice what we preach here at the agency, and we’re really proactive about creating a positive culture, and we’ve learned a lot along the way,” Grinnell said. “As a result, we’re able to have those conversations with our clients. So we get into not only insurance, but also just plain running your business and how to make it better. We try to have those overall business conversations with our clients and not just focus on quoting policies.”

Duval seconded the idea of practicing what they preach. “We’ve continued to build our culture. We have a work-hard, play-hard atmosphere; we’re definitely busy, and we put education into everything we do to better our employees, but we like to have fun, too.”

For example, a social committee plans events for both in-office and remote workers that helps everyone feel part of the organization and its collaborative spirit, she explained. “We want to get to know the team and have team-building moments, so everyone feels supported and has an opportunity to meet and talk and have that collaborative spirit outside of work.”

Geffin noted that culture is so important at Webber & Grinnell that the agency has a ‘culture book’ that’s given to new employees as part of the onboarding.

“It’s a way to emphasize how important culture is to the company, because, again, we try to practice what we preach. We talk about employee engagement with our clients, with our prospective clients, but most importantly with ourselves.”

That culture extends to supporting some 50 to 60 organizations in the community, by sponsoring events, like Safe Passage’s Hot Chocolate Run, and sitting on boards; for example, Grinnell is treasurer of the Food Bank of Western Massachusetts, and Geffin is treasurer of Clinical & Support Options.

“Whenever an employee has an idea on something they want to do from a community standpoint, we’re always figuring out how we can work it in,” Geffin said. “I think that’s just being a part of a business community with our peers and colleagues throughout Western Mass. What makes Western Mass. so great is we all do this. It’s not unique to us. We’re just happy to be a part of that community.”

When the agency acquired Ross Insurance in Holyoke several years ago, that was an important consideration for Ross as well, Grinnell said, which is why Webber & Grinnell has continued to support many Holyoke organizations.

It’s all part of a local focus that Alera has promoted from day one and impacts all parts of the business, he added.

“Alera’s tagline is ‘national scope, local service,’ and I think it’s really important to emphasize that, because we wanted that national scope, that ability to further enhance our colleagues’ careers and help our clients get more resources, yet not lose the local touch and the local leadership,” Geffin said. “When we made that move, that was top of the list.”

Amy Jamrog Takes Financial Advising, Coaching to Wider Audience

By
Banking and Financial Services

Taking Flight

Amy Jamrog

Amy Jamrog says she started Four Wings and wrote her book Confetti Moments to broaden her impact as a coach and consultant.

Amy Jamrog says the past few years have certainly been a rough ride for investors — and anyone looking for financial advice.

Indeed, between the pandemic and its many side effects, wild swings — and serious dips — on the stock market, copious amounts of uncertainty, and non-stop talk about inflation and recession, people have been looking for a calm voice, someone who can help them make sense of all this, someone who can help them cope.

Meanwhile … those doing the financial advising have been looking for all of those same things. And this certainly helps explain the rapid growth and intriguing staying power of a relatively new resource for these financial advisors called Four Wings Consulting. That name, and the accompanying logo, have some real significance.

“The dragonfly is the only insect that can fly forward, backward, up, down, and side to side,” Jamrog, a 25-year veteran of the financial advising sector, told BusinessWest. “And so, my coaching is about helping people figure out which direction they’re currently flying in and getting them moving in a forward direction.”

Elaborating, she said the coaching service was designed to help financial planners come up with relevant content, innovative solutions, and new ideas month after month — and pass on what they learn (often about subjects other than money) to their clients. At the same time, they were getting needed support themselves.

“The dragonfly is the only insect that can fly forward, backward, up, down, and side to side. And so, my coaching is about helping people figure out which direction they’re currently flying in and getting them moving in a forward direction.”

“During the pandemic, I was finding that so many financial advisors were working really hard to help their clients, and not having any support for themselves and feeling really isolated,” she said. “I just put out this idea of creating a community of advisors and coaching them as a group.”

Initially she thought maybe 20 or 25 of her colleagues might be interested in being part of such a group. But to her surprise, 130 signed up for it, and most of them continue to join each week.

 

Light in the Darkness

For Jamrog, Four Wings has become one way to share and spread ideas and inspiration. Another is the book she recently wrote called Confetti Moments: 52 Vignettes to Spark Conversation, Connect Deeply & Celebrate the Ordinary, a title that really says it all.

The book, finished in August and launched in November, is now a Wall Street Journal and USA Today bestseller, popular with CEOs, team managers, and even families.

Confetti Moments is a collection of entries to a blog Jamrog started near the start of the pandemic called Wednesday Wisdom, which was started to bring some light to some very dark times. To explain, she turned back to when the world shut down.

“I wanted to bring something positive to our clients in the wake of such uncertainty and depressing information everywhere,” she explained. “So I started blogging weekly with uplifting stories that I thought would be a nice diversion for my clients.

Amy Jamrog book

“I did it every week for two years during COVID, and I came to find out that thousands and thousands of people were reading it and forwarding it to their entire companies or their departments,” she went on. “I heard from people who said, ‘my boss sends me this every Wednesday, and I love your stories.’ And the feedback from my readers was ‘I wish you could package all these stories into a book — I would read the whole book again.’”

She did, and they are.

The 52 chapters in Confetti Moments take titles that include “Sometimes We Need a Wider Lens,” “You Can’t Take It With You,” “Stay in Your Lane,” “Lower Your Expectations,” “What Our Scars Say,” and “When Eight Oars Are In Sync.” Collectively, they are designed to provoke thought and inspire positive change, said Jamrog, who is doing all this in addition to her day job as a financial consultant with MassMutual.

“There are opportunities to impact one client at a time — that’s a fine career, and many people do really well with that. I got to a point, maybe five or six years ago, where I really wanted to have a bigger impact on my industry.”

As she talked about both Four Wings and Confetti Moments, she said they were both born from a desire to broaden her impact as both a financial consultant and coach.

“There are opportunities to impact one client at a time — that’s a fine career, and many people do really well with that,” she told BusinessWest. “I got to a point, maybe five or six years ago, where I really wanted to have a bigger impact on my industry. I knew that the work my team and I do as financial advisers is very, very good and very different than the average advisor, and I wanted to teach that.”

This was the start of Four Wings, through which she now coaches roughly 100 financial advisors, who take part in monthly Zoom sessions. This consulting work started a few years before the pandemic, she noted, but it really picked up steam during the early months of the pandemic, when, as she noted earlier, advisors were isolated, their clients were looking for answers, and many were just searching for a guiding voice.

“It started with financial advisors feeling isolated, trying to help their clients financially, and being resourceful for them,” she said. “But they were realizing that many of their clients were just stuck; they couldn’t make financial decisions, or they [the advisors] didn’t know how to move them forward in the wake of such uncertainty and panic for most people.”

Three years later, the community of advisors she created, who pay a monthly subscription fee to take part, continue to meet, with participants from across the 413 and also across the country, all of whom are still helping clients cope with a volatile market, uncertainty, and growing fears about recession and what might come next.

“Advisors want to be resourceful and bring a positive message to the clients,” Jamrog said. “But at the same time, they also need an outlet, someone to vent to, someone to present their worries and concerns to and get some great feedback. The biggest challenge in being a financial advisor is that we give advice and guidance all day long, but sometimes it’s nice to actually get some advice and guidance; that’s what I provide, and that’s what these groups provide.”

 

Sparking Change

As for Confetti Moments, she said she’s already sold several thousand copies of the book, which is comprised of what she considers the 52 “best” of her Wednesday Wisdom blog entries.

Each chapter has the blog post, followed by some “Ideas to Spark, Connect & Create This Week,” and a page to write down some notes.

In the chapter titled “Stay in Your Lane,” Jamrog writes: Safety features on cars are designed specifically to keep the drivers safe. Too bad we as humans don’t come equipped with those warnings too. Wouldn’t be great if we came programmed with a little sensor that reminded us periodically to stay in our lane? How often do we take on things that are not our business? Do you find yourself straying into other people’s areas with good intentions — probably even genuinely meaning to help them — but then realize that staying in your own lane is the better, safer place? For everyone?

For those ideas to spark, connect, and create, or ‘prompts,’ as she calls them, she has these:

• Look around at different areas in your life. Where are you drifting out of your lane?

• In an effort to be ‘helpful,’ have you drifted into someone else’s lane? Do you owe them an apology and a promise to stay out of their way in the future?

• What is your lane? Take some time to define this for yourself since it can change over the years. Once you identify the area(s) you excel and thrive, you’ll be happy to spend more time in those lanes.

“The prompts ask you to change something in your life over the next seven days,” she explained. “And then you do it again next week.”

Elaborating, Jamrog said the book is inspiring people to “celebrate the ordinary,” and in the few months since the book came out, readers, many of them business owners and managers, are heeding that advice and encouraging others to do the same.

“I have five appointments this week for corporations who want to book me for corporate speaking engagements because companies want to bring more Confetti Moments to their employees,” she said, adding that this was a typical week.

Summing things up, she said that all aspects of her work, including her day job, are about creating such Confetti Moments. That’s what she meant by broadening her impact.

And if the volume of book sales, as well as the number of advisors attending her weekly Zoom meetings, are any indication, then she is certainly succeeding with that goal.

How to Attract Employees with the Right Retirement Plan

By Contributor
Banking and Financial Services

Saving Grace

By Barbara Trombley, CPA

 

With a labor shortage and looming recession, attracting the right employee is more important than ever. Many small businesses are struggling to find qualified candidates.

Other than wages and healthcare, how can you make your business more attractive to a potential worker? Often, a retirement plan is the answer.

With the absence of traditional pensions today, the onus for retirement is on the employee. Many small-business owners may feel a personal responsibility to enable their employees to fund a retirement. Not having one at all can certainly be a deal breaker for many applicants.

The ability to save, directly from a paycheck, is very attractive. But what plan should you offer, and what are the costs? What are the benefits of the different types of plans?

The most common type of plan is a 401(k). You need only one employee to set up a 401(k). The biggest advantage to this plan is the high level of salary deferrals that it allows. The limit for 2023 is $22,500 with a $7,500 catch-up contribution for those over age 50. Many plans can offer both pre-tax contributions and post-tax (Roth) contributions. There are many investment choices that are possible in a 401(k) plan. Also, many plans are associated with a financial advisor who will offer education to your employees, possibly helping them save more for retirement.

“Other than wages and healthcare, how can you make your business more attractive to a potential worker? Often, a retirement plan is the answer.”

Barbara Trombley

Barbara Trombley

One drawback is that a 401(k) plan can be one of the more expensive types of plans to set up and maintain. The plan needs to be either a safe-harbor plan, where the employer must make a specified matching contribution or automatically deposit 3% of the employee’s salary into the plan (any contributions made by the employer are tax-deductible), or the plan needs to be tested each year to ensure that the plan does not discriminate against highly compensated employees.

In the past, this type of plan had to be offered to all employees over 21 years of age who work at least 1,000 hours. The rules are changing to allow some part-time workers to participate. In my opinion, a 401(k) plan is the most advantageous plan to the employee but may cost the employer more in administration, setup fees, and safe-harbor contributions compared to other plans.

Another popular plan for employers is the SEP plan. Again, this plan can be offered by businesses with more than one employee. The main difference between the SEP plan and a 401(k) is that SEP contributions are made only by the employer; there are no employee contributions. This type of plan is very simple to set up and does not have testing requirements. The maximum annual contribution is 25% of salary, up to a limit of $66,000. The employer has to make the same percentage contribution for each of his or her employees.

The benefit of this plan is that it is very simple to set up; the drawback to the plan is that the business owner needs to make all of the contributions, which may not be economically feasible. As an advisor, I often see a solo business owner having this type of plan.

What if a business owner does not want the complexity and costs of a 401(k) and does not want to fully fund a retirement plan like the SEP? A Simple Plan may be the answer. A Simple Plan can be offered by a business with fewer than 100 employees. There is no annual filing, and you usually use a financial advisor to set it up and choose the investments.

The limit for an employee’s contribution is $15,500 in 2023, or $19,000 if the employee is over age 50. The reductions can come directly from payroll, and the employee can decide how much to contribute. The employer must either contribute 2% of each employee’s compensation or match 100% of employees’ contributions up to 3% of their salary (which can be lowered to 1% in any two of five years). This plan is attractive to many small-business owners as the administration overhead is drastically reduced compared to a 401(k), and there is a relatively small matching contribution that needs to be made.

Lastly, I have helped a few small businesses set up a Payroll Deduction IRA. This is the perfect solution for an owner that would like to enable their employees to save for retirement but may not have the funds for matches or administration. In this type of plan, the employee can contribute up to the Traditional IRA limit ($6,500 if under age 50 and $7,500 if over), with the funds drawn directly from their paycheck. There are no setup fees for the business owner and no employer matches or testing requirements. The employees own their account if they change jobs. Many people are eligible to contribute to a Traditional IRA, but having the deduction made through payroll makes the plan more accessible.

As an additional motivation for a small business to set up a retirement plan, the federal government has been increasing the incentives to the business owner with tax credits. The owner can deduct up to 50% or $500 of plan startup and administration costs for the first three years of the plan. Additional tax credits may become available as our government continues to encourage retirement saving. Consult your financial advisor or an employee-benefits specialist to set up a plan.

 

Barbara Trombley is a financial planner with Wilbraham-based Trombley Associates Investment and Retirement Planning; (413) 596-6992. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this education material.

Nicole Bercume Steers Her Father’s Company into a Bright Future

By
Building Trades

Generation Next

Nicole Bercume

Nicole Bercume stands outside one of her current projects in Hadley.

 

When Ron Bercume passed away in 2021, his daughter, Nicole Bercume, said there was never a doubt that she would pick up the mantle of leadership in Bercume Builders, the company he started almost 40 years ago.

But it was a winding road that brought Nicole to that point, along which she settled in Florida, got married, built a law career with her husband, Andrew Bass, had kids, and returned home to Hadley.

Before her father succumbed to pancreatic cancer in October 2021, Bercume was already helping him build the final seven homes in a 28-home development in North Hadley called Shattuck Estates and Sapphire Estates; when he passed away, she stepped in and worked with the company’s longtime subcontractors to finish the job. By that time, she had already decided to stay on and continue Ron’s work.

“My dad had created such a fantastic company,” she told BusinessWest. “It would be a shame if it didn’t continue.”

Today, those 28 large homes on Crystal Lane, Indian Pipe Drive, and Nikki’s Way stand as the last success story in Ron’s career and the first in Nicole’s new one. Beyond that development, she is currently building her third house on a lot on Colony Drive, right across Shattuck Road, with a goal of creating a constant flow of residential projects, and even expanding the business beyond her father’s traditional focus on Hadley and Amherst.

“My dad had created such a fantastic company. It would be a shame if it didn’t continue.”

“Forty years is a long time,” Bercume said as she and Bass took BusinessWest on a walking tour of the development. “My parents started it together right when I was born, and they just went from there. Once I got older, I realized how talented of a businessman and builder my dad was. It’s not just that he would build homes; this was all wooded land, so he would design the actual subdivision. He would design the roads, and that takes a lot of skill.”

When he died at age 81, “he was still plugging away,” she added. “He always loved to work. All his subs worked for him for a long time. All the guys have known me since I was little, and I was very lucky to have learned from my father.”

 

Winding Path

Bercume had interest in the family business, but in her early 20s, the timing wasn’t right. “He was still working aggressively, and at that point, he was doing everything himself, so there wouldn’t have been a substantial role for me.”

So she went to college and law school in Florida, met Bass, and moved back to Hadley in 2015 and passed the Massachusetts bar. She started working at a firm in Northampton, while Bass started his own firm; in 2019, they bought a building on Route 9 in Hadley, which today houses Bass/Bercume Law Offices. Bercume handled the firm’s real-estate practice, while Bass handled the litigation practice.

Bass started out in consumer-protection work, particularly around Massachusetts’ lemon law. “That was really strong, so I started doing those cases all over the state; they mostly went to litigation because the dealerships wouldn’t resolve the cases, so that’s how I got into litgation,” he recalled. “After I got rolling, I got into construction litigation because Nicole’s dad had a lot of cases, so litigation became my core focus.”

Nicole Bercume and Andrew Bass

Nicole Bercume and Andrew Bass live in the 28-home development in Hadley that Nicole’s father started and she completed after his death.

Cases in that realm include land-use issues, contracts, and purchases of land; at one point, Ron settled a notable case with Tofino Associates of Hadley over a roadway issue in the Amherst Hills development near the Belchertown line.

Bass was recently recognized by Lawyers of Distinction as one of the top 10% civil-litigation attorneys in Massachusetts. Meanwhile, over the past couple years, Nicole was transitioning away from the practice into her new role leading Bercume Builders. “My father did teach me everything; once we had our kids and moved back here, that’s when he taught me everything.”

Ron typically built large homes with “classy, simple interiors, not a lot of clutter,” Nicole said, noting that homes in the new development start at 3,000 square feet, and typically feature open floor plans, high-end appliances, and maple flooring — and each was built in just four months. After her third house on Colony, she said she’s on the cusp of buying more land to develop a subdivision like the Shattuck/Sapphire project.

Woman’s Work

At a time when it’s still uncommon for a woman to lead a building firm (see related story on page 25), Bercume doesn’t particularly care if people question her abilities, noting that the subs who worked with her father for, in some cases, decades know what she can do — and they know she’s committed to her father’s values.

“My father really had such a great process. Even if you didn’t like my dad, you definitely respected him because he was an astute businessman, and he was just on top of it.”

“My dad’s greatest skill was that he had good taste; he picked out all the plans himself. People always say you know when a home is a Bercume home because they’re attractive and clean and classy-looking,” she said. “Construction defects were never an issue for him because, the second there was a problem, my dad, who could never sit still, would take care of it.

“He always did higher-end homes for whatever the era was,” she continued. “He liked big homes; the bigger he could build, the more fun it was for him.”

And when she got her Massachusetts construction license and reaffirmed her working relationships with those longtime subs, she knew it would be fun for her, too.

“My father really had such a great process. Even if you didn’t like my dad, you definitely respected him because he was an astute businessman, and he was just on top of it. All his subs respected him, and that transferred to me nicely. He taught me a lot, so I know what to expect from everyone, and it was very fluid.”

It’s just another way Bercume Builders has been a generational success story — one that occupies Nicole’s earliest memories, when she’d visit Ron at job sites. “And now, our three kids are always on the job sites with us.”

Because it’s never too early to introduce them to the family business.

New Ownership Brings Renewed Vibrancy to West Side Property

By
Michael Martin, left, and Nick LaPier
Commercial Real Estate

Building Momentum

Michael Martin, left, and Nick LaPier

Michael Martin, left, and Nick LaPier have acquired 333 Elm St. in West Springfield and made it home to their businesses.

In many respects, Nick LaPier is back where he started. Or at least back to where he started his own accounting firm in 2003.

That would be the office building at 333 Elm St. in West Springfield.

Back then, he took a tiny office (600 square feet) on the first floor. There, with his mother, Elaine, serving as an office manager, he quickly grew his firm and eventually moved out and up.

Today, he is co-owner of the property where he first put his name on the door, along with Michael Martin, managing partner of Paladin Wealth Partners, which will soon be expanding with a second office at 333 Elm, sharing the property with LaPier Dillon & Associates (LaPier partnered with Brian Dillon several years ago); New Valley Bank, which moved in last August; and tenants that will occupy roughly 1,500 square feet of space currently being built out.

Together, they’re filling the parking lot and bringing new vibrancy to the property known to many in the community as the ‘Checkwriters Building’ (the payroll company occupied most of the property before outgrowing the space and moving to Northampton in 2021) and, before that, as the home to a dental practice — Dr. James Sady built the property in 1975 — and other tenants.

It was also home years ago to Multi Bank, where LaPier and his wife, Kathy, secured their first car loan.

So LaPier has a long history with the property, and he and Martin intend to write more chapters, starting with the relocation of their businesses to that site, thus becoming part of the revitalization of West Springfield’s downtown, a work in progress that includes the redevelopment of the former United Bank property, 95 Elm St., just a few blocks to the south; some new restaurants; and planned traffic improvements, including a rotary at the intersection of Elm Street and Route 20 (more on that later).

“The hope with this move is that, as we continue to grow, we will have the space available to accommodate that growth.”

LaPier, Dillon, and the accounting firm’s other employees finished moving in just after the new year. Meanwhile, Martin and others from Paladin Wealth Partners are set to move in later this month. While the property was acquired last summer, the two partners have invested heavily in renovating its spaces.

“We essentially gutted it and designed it from the ground to function as a full-service CPA firm,” LaPier said of his firm’s 6,500 square feet, adding that the company now has 16 employees. “We designed it to be the most efficient operation format for a CPA firm, but, at the same time, designed for 2023.”

With both LaPier, Dillon & Associates and Paladin Wealth Partners, the acquisition of 333 Elm started with the realization that they had outgrown their existing homes. For the accounting firm, that meant space roughly a mile away at 71 Park Ave., and for Paladin, space in Tower Square.

“The hope with this move is that, as we continue to grow, we will have the space available to accommodate that growth,” LaPier said.

Martin said his firm, which he launched with partner Pat Donnelly in 2018, has seen steady growth over the past several years. Having outgrown the space in Tower Square, the logical decision was made to expand with a second office.

“We have 2,500 square feet in Tower Square, and we were full,” he told BusinessWest, adding that, at the advice of his son, Ryan, who once worked in sales at Checkwriters (and now works at Paladin Wealth Partners), he took a close look at the 333 Elm St. property. Later, he would partner with LaPier, his long-time accountant, to acquire it for $1.9 million.

But there were other considerations for this acquisition beyond the need for more space.

Both LaPier and Martin were looking for real-estate investment opportunities, and when the property came on the market in 2021, they gave it a close look and decided that, in addition to a storied past, it had a solid future, given its location, parking, and other amenities.

Nick LaPier, left, and Brian Dillon

Nick LaPier, left, and Brian Dillon in their renovated space at 333 Elm St. in West Springfield.

Soon after taking ownership, they signed New Valley Bank, an emerging player in the region’s financial-services sector, to a long-term lease for what is now its third location. A solid tenant, the bank also brings potential new customers to both LaPier, Dillon & Associates and Paladin Wealth Partners, he said, as well as needed foot traffic in the city’s emerging downtown — a story both partners wanted to be part of.

“Elm Street’s a growing area; that’s another reason to invest here,” LaPier said. “There’s been positive growth on the street for the past 10 years, and it appears that the city wants to continue developing it as a business corridor; we want to be part of that story.”

West Springfield Mayor William Reichelt confirmed those aspirations. He said there has been significant progress made in making Elm Street more of a destination in recent years, especially through the redevelopment of the former United Bank Building, which is now home to several tenants, including Tandem Bagel Company, Future Health, Kindred at Home, and several others.

Having 333 Elm vibrant again, especially with service businesses that will have employees but also bring people to that location, will certainly bring more momentum to that central business district.

“Just to have more bodies in the downtown is good overall,” Reichelt said, referring to employees working at that location. “There are now more people who are going to go eat at Tandem, the Celery Stalk, or the other restaurants in the area. They’re going to bring customers and more foot traffic down here, and that’s what our downtown is going to thrive on.

“That building being vacant really hurt us — all those employees who weren’t there anymore,” he went on, adding that the property had been largely vacant for roughly two years.

The parking lot is filling back up again, a positive sign for the city and the start of another intriguing chapter in the story of a property with an already-rich business history.

As a Shipping-solutions Company, AST Delivers for Its Customers

By
AST
Features Special Coverage

Going the Extra Mile

AST

AST President Billy Kingston, center, with his sons, Chris, left, vice president of International Services, and Tim, vice president of Domestic Services.

Billy Kingston says the global shipping business has historically been an ultra-challenging, often-misunderstood sector of the economy, one defined by heavy competition, demanding customers, unseen twists and turns, and a landscape that can, and does, change quickly and often.

And that was before COVID and the manner in which it eventually turned the supply chain on its ear, inflation, the war in Ukraine, higher tariffs on many goods, a workforce crisis, soaring fuel prices, remote work, and everything else that has happened over the past few years.

Summing it all up, Kingston, president of All States Transport, better known as AST, said this has certainly been a tumultuous and very difficult time for this industry, one that AST has withstood because of all it can bring to the table, especially (in his case) a half-century of experience, but also a deep, talented core of employees, connections around the globe, and, most importantly, a commitment to delivering for customers and going the extra mile.

Those are both industry terms, sort of, but they help explain why AST, a domestic freight broker and international freight forwarder, terms that are self-explanatory, is able to stand out in a sea of competitors, both domestically and globally, in a business where firms are tasked with getting things from here to there — or there to here — in a timely fashion.

Elaborating, he said the keys to success for any company in this business are flexibility, the ability to move quickly and effectively, establishing trust with customers, and amassing a track record for success in delivering for clients, in every sense of that phrase.

“We arrange for transportation of goods to and from our customers anywhere in the world,” said Kingston, offering a simple explanation for work that is anything but simple. “The domestic side of the business is how we started way back, and that side of it is very active. The international side has been growing over the years and doing well; we move freight internationally by land and water.”

“We have so many great customers … if you’re upfront with them, they’re going to be upfront with you. That way, you can work through things, because transportation is nothing if not problems that have to be worked through.”

“It’s a rugged business with real issues, and we live them,” continued Kingston, who leads a staff of 20 along with his sons, Chris, vice president of International Services, and Tim, vice president of Domestic Services. “Through all of the ups and downs of the economy, fuel issues, and supply-chain woes over the past few years, it has just been very challenging.

“For us as a company, it has been our best period of time, business-wise,” he went on. “But it’s also been the most difficult to operate in.”

In a wide-ranging interview, the Kingstons pulled back the curtain on an industry that few outside really know, one that is settling back into something approaching what was happening before the pandemic, although no one came close to using the word ‘normal.’

To put things in perspective, Billy Kingston said that, before the pandemic, the cost for a shipping container coming in from China was $4,000 to $5,000. At the height of the pandemic, that cost had soared to $25,000 to $30,000.

“The spike was just amazing, and at that price, you were bidding, and hoping, to be able to get a container, and then hoping to get a spot on a ship to come this way,” he said, adding that the impact of the many issues within the shipping industry on inflation and the general economy cannot be understated.

 

Train of Thought

As he talked about the global shipping business, Chris noted that, like other sectors of the economy, this one has a language all its own, with an alphabet soup of acronyms.

These include TL (truckload), LTL (less than truckload), DAP (delivered at place), DPU (delivered at place unloaded), and myriad others.

Learning this language and helping clients understand it is just one of the many nuances of the global shipping business, said Billy, who got his start in it back in the mid-’70s, working in sales for several different national trucking companies as well as an international freight forwarder.

After working in the business for many years, he decided he knew it well enough, and had enough solid connections, to strike out on his own. He started All States Transport in the basement of his home in the Forest Park section of Springfield in 1985.

The global shipping industry is highly competitive and ever-changing, and the pandemic only added several additional layers of challenge.

For the first year or so, it was a one-person operation that eventually moved into a small office in Market Square in downtown Springfield, adding employees as it continued to grow and expand its portfolio of clients, many of which have stayed with the company through its history.

The company had a few different homes — as well as its own small trucking company, which it operated out of property on Avocado Street in Springfield for several years — before settling into its current location on East Columbus Avenue, the former home to the Leonard Gallery and Sam’s Glass.

For the past 15 years, AST has also operated a small office in Miami. At one time, it also housed a trucking operation there, but that, like the one in Springfield, became difficult to manage. So, in both locations, the company has returned to its roots — and its routes — as a freight broker and forwarder.

“When the pandemic hit, because there was so much uncertainty in the general economy, you saw companies all over the world closing down and canceling orders that had been in place for a long time.”

As he explained the operation, Billy said that, in a nutshell, AST goes about finding global shipping solutions for its many kinds of clients, most of them manufacturers. About 80% of the company customers are based in Western and Central Mass., Northern Connecticut, and Rhode Island, he said, with the rest spread out over the country.

As a broker, AST will work with a client to secure the shipping of goods to or from their business. To do so, it works with trucking outfits across the region and around the country, as well as rail-service providers and sea and air carriers. What separates the many (as in thousands) of competitors in this field is their ability to make and maintain connections with carriers, know and understand the market, move quickly (many clients want same-day service), and deliver on both price and quality of service.

And all this requires an experienced, talented workforce. “You need a staff that is familiar with the marketplace and has all the tools and technology they need to succeed,” Billy explained. “It’s a fast-moving, time-sensitive, rate-conscious industry — that’s what it’s about.

“We have other customers that we’ve done business with for years and years … they don’t ask us for rate on every load,” he went on. “In many cases, we have the ability with those customers to move up or down as we need to, to service their needs and ours. And that only comes from years of good faith and years of trust, built up between us and our customers because they know that if we need to add extra dollars to a rate, there’s a good reason for that. They also know that if we can reduce that rate, we’re going to do that, and we do this as often as we can.”

Beyond rates, successful freight brokers and forwarders need to have a thorough understanding of the players in the shipping field, where they operate, and how, said Tim Kingston, adding that AST works with trucking companies across the country.

“And we need to, because trucking companies, by their nature, and by their history, generally service certain sections of the country,” he explained. “Some will go anywhere, but a lot of them carve out a part of the country that they want to service for their business needs. You learn those, and when you have freight moving to South Carolina, you know where to start.”

Chris agreed, and said one constant for the company through the years has been to apply an established set of values and principles and to effectively partner with clients and communicate with them — another must in this business.

“It’s a super-competitive, time-sensitive, money-sensitive industry that changes on a dime in many cases. You need to have a staff that’s dedicated; you need to have a staff that’s used to hearing the word ‘no,’ because they hear it a lot.”

“If you have good news for a customer, give them good news; if you have bad news, something’s gone wrong, let them know early, communicate that, and try to work through problems,” he said. “We have so many great customers … if you’re upfront with them, they’re going to be upfront with you. That way, you can work through things, because transportation is nothing if not problems that have to be worked through.

“Sure, 60% of your loads are going to go without a hitch,” he went on. “The other 40% … that’s where the real work is, so we try to apply the same values across all our different sectors.”

 

Plane Speaking

This combination of experience, built-up trust, and ability to adjust to rapidly — and often profoundly — changing conditions, has enabled AST to not only thrive for the past four decades, but also persevere through this recent, and ongoing, period of heavy turbulence.

Indeed, as noted earlier, this challenging business has become more so — make that even more so — over the past several years with the profound changes to the landscape brought on by the pandemic.

At the top of this list were supply-chain issues that could only be described as historic, said all three Kingstons, noting that the industry was seeing explosive surges in prices for shipping containers and backups at ports around the globe. It didn’t happen overnight, but almost.

Billy explained how it all happened. “When the pandemic hit, because there was so much uncertainty in the general economy, you saw companies all over the world closing down and canceling orders that had been in place for a long time,” he said. “Manufacturers then began cutting back, as well as transportation companies — steamship lines parked vessels all over the world because the demand wasn’t there. No one had an idea when it was going to come back, and that really kicked off the fluctuation in the supply chain.”

Chris agreed, and noted that, three or four months into the pandemic, an array of colliding forces made the situation much worse.

“A lot of people were at home, and they weren’t doing the things they always did in terms of discretionary income,” he explained. “People were at home, and they bought many more things than they normally buy. And then, you had the stimulus programs, which gave people more spending money. Then … you had a lot less international shipping capacity, but a giant surge in demand. Meanwhile, you had empty containers in the wrong places that took forever to get repositioned.

All this created a messed-up supply-and-demand curve, which would have resulted in a container coming in from China for $25,000, just for the cost of the container, never mind the tariff,” he went on. “It created a lopsided supply-and-demand curve, which pushed prices out of sight.”

This phenomenon, which has eased considerably in recent months but is still an issue, is just one of many that has contributed to this being what is considered the most volatile period ever for an industry known for volatility.

On top of everything else, the global shipping industry, like virtually every other sector, has been impacted by an ongoing workforce crisis, Billy said, adding, again, that success in this business is directly related to the quality and consistency of the people doing the work.

“It’s a super-competitive, time-sensitive, money-sensitive industry that changes on a dime in many cases,” he told BusinessWest. “You need to have a staff that’s dedicated; you need to have a staff that’s used to hearing the word ‘no,’ because they hear it a lot; you need to have a staff that understands customer needs and understands which customers can be a little more flexible and more reasonable at times, and which customers can’t be because of the nature of their business. They need to be thick-skinned because it’s not always pretty.”

Indeed, many in this business, including AST, are looking for help right now, he went on, adding that, over the past several years, and essentially from the beginning, AST has made itself into what he considers a good place to work — and grow.

“In this environment, especially, we take care of our staff in every possible way,” he said. “We have some benefits that are quite outstanding, especially for a company our size, and we’re proud of that. As a result, generally, our people are with us for a very long time; very few people leave, and we’re proud of that, too.”

Elaborating, he said that, because of tight deadlines and the need to deliver, there is pressure on employees, something the company’s managers work to alleviate as best they can.

“We have some fun every day — at different times, you never know when it’s going to happen,” he went on. “And there are days when the fun doesn’t come very quickly or very often because you’re right to the wall, morning ’til night. But we try to lighten things up when we can and in whatever way we can.”

Area Banks Navigate Unpredictable Economic Tides

By
Paul Scully
Banking and Financial Services Special Coverage

Cloudy Forecast

Paul Scully

Paul Scully says loan demand was strong in 2022 despite the interest-rate hikes.

A constant flow of interest-rate increases didn’t exactly make borrowers happy in 2022, Paul Scully said, but it didn’t keep them from participating in the economy.

“I think, coming out of the pandemic, there was a pent-up desire to reconnect, within business circles and in communities. We had a terrific year for lending,” said Scully, president and CEO of Country Bank, which opened a new business production office in Tower Square in downtown Springfield last year. “That’s worked out beautifully for us. Our loan production in 2022 was the greatest level ever — we originated over $400 million in loans, almost $170 million in net growth.”

A broadening of the focus made a difference, Scully said. “Country Bank has been known as a commercial real-estate lender; that was our niche. We’ve gotten more deliberately into C&I lending from 2021 going into 2022, and have done some significant C&I deals: $10 million, $20 million, $30 million deals. We have the expertise in house to be able to do that. And based on our capitalization — we’re one of the highest-capitalized banks in the Commonwealth — it gives us the opportunity to be able to grow along with businesses and customers.”

bankESB’s holding company, Hometown Financial Group, continued to grow in 2022 as well, with the acquisition of Randolph Bancorp and its subsidiary, Envision Bank, which was merged into Abingdon Bank, another Hometown holding, more than doubling its presence on the South Shore.

“The most interest-sensitive customers are residential borrowers, and as residential mortgage rates rose throughout 2022, we saw the volume of residential lending, especially refinances, drop dramatically. Commercial lending is definitely impacted as well, though not to the same extent.”

“We’re in a very low-margin industry,” said bankESB and Hometown President and CEO Matt Sosik, explaining why growing geographically to create scale is an important part of the company’s strategy. “Any business person will tell you costs are rising, whether it’s insurance, utilities, fuel oil, you name it — and, of course, wages. It’s the same for us, and if we’re not growing, we’re going backward.”

That said, “we had our best earnings year ever in 2022, and it wasn’t even anywhere near second place,” Sosik noted.

Part of that was the fact that interest rates for borrowers rose so quickly that the lag between those rates and the rates paid to depositors generated income for banks. But heading into 2023, margins are again shrinking as deposit costs rise, and a slowing economy has some people worried about a possible recession, which would further soften the loan market.

“The most interest-sensitive customers are residential borrowers, and as residential mortgage rates rose throughout 2022, we saw the volume of residential lending, especially refinances, drop dramatically,” Sosik said. “Commercial lending is definitely impacted as well, though not to the same extent.”

Tony Worden, president and CEO of Greenfield Cooperative Bank, agreed.

“Obviously, the residential market became soft because of what’s going on with rates as the year progressed,” he told BusinessWest. “And frankly, the commercial lending market became softer because people don’t know what the economy is going to do going forward; they’re keeping their powder dry, as they say. They don’t want to make big decisions if they don’t know how the economy will turn out.

Matt Sosik

Matt Sosik says fundamentals like low inventory have kept housing prices high.

“This year, everyone is holding their breath to see what the outcome will be,” he went on. “Will the Federal Reserve be able to engineer a soft landing? Last year, we thought we were in for a couple of rate increases, but the rates went much higher than everyone thought they would. When you do strategic planning, you make assumptions about what the rate environment will be, and we were all wrong last year.”

This year, economic projections include not only the rate issue, but whether unemployment will rise, what the impact of energy costs will be, and much more. On the topic of energy, Worden said the region has seen a mild winter so far, so that could help people weather the still-high costs.

“I guess if people knew what was going to happen, they could make a lot of money. From a banking standpoint, a lot of loan customers don’t want to make decisions until they know where we’re all situated.”

 

Saving and Spending

Worden lend some recent historical perspective to what banks are seeing when it comes to consumer and business behavior, starting in 2020, at the height of the COVID-19 pandemic.

“For a few months, Americans were saving at a rate that hadn’t been seen in 80, 90 years. They were saving money, they weren’t going anywhere, there was a lot of stimulus, both federal and state, and banks saw their deposits increase tremendously because people were sitting on a lot of cash.”

While that’s generally not a bad thing for banks, he said, cooperative banks not only pay for FDIC insurance, but also pay premiums on the private Depositors Insurance Fund, which covers deposits beyond the $250,000 the FDIC covers. “All the deposits coming in but no loan demand cost us money in a way; we were paying insurance on all the deposits, but couldn’t put the deposits to work.”

In the second year of the pandemic, people were starting to spend again, take vacations, and work on their homes, while most stimulus had ended, so deposit levels crept toward a more typical environment, and loans picked up as well. And while the current interest-rate environment has made some potential borrowers skittish, Worden said it’s important to note that those rates are still historically low — yes, a fixed 30-year mortgage rate is north of 5% right now, but a generation ago, it was 17% or higher.

“I think it’s a mental thing with borrowers,” he went on. “Rates were so low for an extended time, you get used to that mentally, and it’s hard to readjust when they start going up again.”

“Last year, we thought we were in for a couple of rate increases, but the rates went much higher than everyone thought they would. When you do strategic planning, you make assumptions about what the rate environment will be, and we were all wrong last year.”

Still, Sosik said, the housing market remains strong due to the fundamentals of low inventory levels and those still relatively low interest rates. But especially with remote work taking hold, “people who may be inclined to think about moving may not want to give up their 3% mortgage.’

“And there’s not a flow of new inventory, so we have this interesting dynamic where rates are rising, but it’s not impacting home prices materially,” he added — especially for a class of higher-income cash buyers who aren’t interest-sensitive.

“There’s a lot of liquidity in the economy, a lot of it funneled toward the residential market,” he said. “Volume is still good, but inventory is still low. Everything is still working; it’s just more expensive to borrow.”

Scully said Country continues to see significant loan demand early in 2023 — “not at the level of 2022, but we are seeing good pockets of business on the commercial side.” Meanwhile, to help customers purchase homes, the bank kicked off a homebuyers’ program in the fall featuring no money down and no private mortgage insurance in select areas.

“We’re still seeing a decent residential market, not as robust as it had been, but still decent,” he said. “On the commercial side, we’re still looking at some interesting deals. But everyone is holding their breath when it comes to construction lending for large projects.”

That said, investors are seeing positive signs, he added, including a comeback for retail and hospitality. “The restaurant industry is starting to have workers come back.”

Meanwhile, Scully added, “unemployment is still pretty low, and we’re not hearing much of layoffs, so hopefully we’ll see the Fed reach its level, see that interest-rate changes have impacted inflation, and we may be starting to see the other side of this sometime in 2023.”

Tony Worden

Tony Worden says everyone is hoping the Fed helps the economy to a “soft landing” with its rate policy aimed at reversing inflation.

Worden said no one really knows where the economy will turn, though there are hopeful signs. “As we see inflation numbers coming down, we’ll start to get an idea whether what the Fed is doing is starting to work. And maybe they’ll start pulling back on rate increases. If they can pull off that soft landing, we might see people reinvesting in business, buying equipment, buying new properties. But I think everyone is waiting a little bit.

“When you have a good economy, banks do well; people are out investing, buying, selling, doing things,” he added. “When the economy is bad, banks struggle because no one’s out doing anything.”

 

Community Counts

The higher-than-usual heating costs that impact every homeowner affect bank employees as well, Scully said, which is why Country recently gave a $750 stipend to all its employees to mitigate those impacts, and other inflationary pressures.

But Country isn’t taking its focus off the community at large, recently adopting the tagline “made to make a difference,” which applies not only to customers and business clients, but to the community as well, where the bank has focused much philanthropic energy over the years to needs like healthcare and food security. In 2022, the bank donated close to $1.3 million, a year after donating a total of $1 million to two major food banks on top of its other giving.

Scully said the pandemic shed a spotlight on basic human needs, not only for banks, but their employees, who, at least in Country’s case, have been more engaged in recent years.

“We’re still seeing a decent residential market, not as robust as it had been, but still decent. On the commercial side, we’re still looking at some interesting deals. But everyone is holding their breath when it comes to construction lending for large projects.”

“We learned a lot about ourselves and humanity during the pandemic, and we have a lot of staff members who really flourished in the sense of being able to volunteer and give time to the community,” he explained. “This what our brand us all about.”

Worden said Western Mass. is fortunate to be home to numerous locally owned banks that are active in their communities by supporting nonprofits through direct donations and volunteer efforts.

“In other parts of the country, this isn’t a thing,” he said. “But up and down 91 are all these good, local, community banks, and we’re all doing what we can do for the community. Obviously, we want to make money; that’s how we stay in business and give raises to our employees and hire new employees. But when Western Mass. does well, we all do well.”

bankESB recently announced that a fundraising drive raised $35,000 for local food pantries, part of its robust charitable giving program known as the Giving Tree, which reflects the bank’s commitment to making a difference in the neighborhoods it serves.

“We try to give back to all the communities we’re in, and we pointedly give back to those in need, things like food insecurity, for both children and older folks,” Sosik said. “The objective of the Giving Tree campaign is around $1 million a year — giving that back to the communities we serve and trying to make a difference for those who truly need it.

“Food insecurity is a year-round problem,” he went on, “but we turn our focus on it a little more at the end of the year and make that the key part of our campaign.”

Looking out his window, Scully noted a $35 million project the bank financed. “That makes a difference for the property owner, but we want to make a difference for everyone in our community,” he told BusinessWest. “All community banks do a tremendous job with community giving, and we’re not cutting back on our giving. Our earnings may change, but we’re committed to our level of philanthropy.”

Tower Square Owners Add Neighboring 1550 Main Building

By
Commercial Real Estate Special Coverage

Building the Portfolio

 

Vid Mitta acknowledged that the emergence of remote work and its impact — still to be determined in many respects — on the region’s inventory of office space was certainly a consideration when he and business partner Dinesh Patel were deciding whether to submit a proposal for the purchase of the 1550 Main building in downtown Springfield.

But ultimately, this was just one of many considerations, he told BusinessWest, adding that the others — as well as his firm belief that business owners and managers will always see value in having people working together in one place — convinced the two serial entrepreneurs to move forward and answer the request for proposals sent by the property’s now-former owner, MassDevelopment, early last year.

Mitta and Patel eventually prevailed in the bidding to acquire the property — formerly occupied by the U.S. Federal Court and currently home to tenants ranging from Baystate Health to the Springfield School Department — for $6 million.

As he talked about its prospects for the future, Mitta focused on those other considerations that played into this decision, especially that age-old axiom when it comes to commercial real estate — location, location, location. Beyond that, though, the current tenant mix, the timeline on current leases, and the good overall condition of the building also played a factor in generating a green light.

“These properties are connected, and they are the two best buildings in Springfield’s downtown for class-A space.”

“Remote work is the main thing that comes to anyone’s mind when we talk about office spaces today,” he acknowledged. “But look at the location — this is what we were looking at, as well as the maintenance and good condition of the property. These factors led us to see this as a good investment. When vacancies arise, people have choices, and they’re going to move into the best building possible.”

Thus, another chapter has begun in what would have to be called a developing story, in every sense of that phrase. That would be the expanding portfolio of properties now owned by Mitta and Patel, either individually or collectively.

That list includes Tower Square and its recently renovated hotel, which has re-earned the Marriot flag, as well as several other hotels, 99 Restaurant & Pub locations, a Walgreens, three McDonald’s franchises, adult day-care facilities, early-education facilities, and more. These collective investments and entrepreneurial gambits earned Patel and Mitta BusinessWest’s Top Entrepreneur award just a year ago.

Mitta told BusinessWest that 1550 Main St. was a common-sense addition to the portfolio, one that gives the partners a property that is essentially full (97% occupancy), with a stable tenant base that also includes the Internal Revenue Service, U.S. Immigration and Customs Enforcement, regional offices for U.S. Sens. Elizabeth Warren and Ed Markey, the law firm Alekman DiTusa, and an attractive, well-maintained property in the heart of the central business district.

“These properties are connected, and they are the two best buildings in Springfield’s downtown for class-A space,” he said of 1550 Main and Tower Square. “With these properties, we’ll be well-positioned to attract new tenants looking for quality space.”

The property that has come to be known as 1550 Main was acquired by MassDevelopment from the federal government in 2009. At that time, it was roughly 70% occupied, said a spokesperson for MassDevelopment, adding that, after achieving all its stated goals for the property, the agency decided to put the property up for sale through a disposition process to allow it to refocus its efforts on other projects.

Dinesh Patel, left, and Vid Mitta

Dinesh Patel, left, and Vid Mitta, who together orchestrated a stunning turnaround at Tower Square, believe 1550 Main St. is a logical addition to their growing portfolio of commercial real-estate properties.

That includes an initiative in Greenfield, where MassDevelopment is partnering with the city and the Community Builders in the acquisition and redevelopment of the former Wilson’s Department Store property in the heart of the community’s downtown. The redevelopment will create roughly 65 mixed-income rental units and reactivate prominent first-floor and basement retail spaces through the relocation and expansion of Franklin Community Co-ops’s Greenfield store, Green Fields Market.

Referencing 1550 Main, MassDevelopment President and CEO Dan Rivera said, “working with tenants, partners, and the city of Springfield over the years allowed us to cultivate this property to its best and highest use. This type of focused teamwork is how long-lasting redevelopment takes root. It is what makes converting an old federal courthouse into a stunning multi-tenant office building possible.”

The property went on the market in the spring of 2022, and the request for proposals issued by MassDevelopment attracted a number of bids.

Moving forward, Mitta said several of the leases of current tenants will be expiring over the next several years. He expressed optimism for renewals, but also for new tenants looking to take advantage of the property’s location and other amenities.

“Tenancy is not a permanent thing — tenants come and go; we know that,” he said. “Some leases are going to expire over the next few years, but we know how to market, and we have a very strong team here.”

“Even those working at home still go to the office — businesses prefer the hybrid model. They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”

Elaborating, he said this team is hoping to attract some current occupants of class-B space to properties that are not much more expensive but bring a number of amenities that class-B properties do not, including parking garages, lighting safety, and that aforementioned location in the heart of downtown.

The property at 1550 Main differs from its neighbor, Tower Square, to which it is connected by a skybridge, in many respects, said Mitta. He noted that Tower Square required significant investment and “re-imagining,” a word he and Patel use often, such as with new tenants that include the YMCA of Greater Springfield. The newer 1550 Main will not require much of either, he said, which is another of those considerations that prompted interest in the building.

As for the trend toward remote work and hybrid work schedules, Mitta acknowledged that there is likely permanence attached to these trends, but, ultimately, he anticipates that there will still be strong demand for office space, especially in the class-A category.

“Even those working at home still go to the office — businesses prefer the hybrid model,” he explained. “They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”

For evidence of this, Mitta points to Tower Square, where he acknowledged that the number of people in the office tower on any given day may be lower than it was prior to the pandemic. But overall, space needs have not changed to a great degree, and new leases continue to be signed.

“Overall, rent is a comparatively small item on the P&L statement,” he said, adding that, for this reason, he has seen few if any tenants at Tower Square downsizing.

Employment-law Roundup

By Contributor
Law

Five Important Things to Know Going into 2023

By Amelia J. Holstrom, Esq. and John S. Gannon, Esq.

 

Massachusetts employers are used to the ever-changing employment-law landscape. As we close out another year and ring in a new one, it is clear that 2023 will bring new challenges and new requirements for employers throughout the Commonwealth.

AMelia Holstrom

Amelia Holstrom

John Gannon

John Gannon

We’ve rounded up the top five things employers need to know and keep an eye on as we turn the page to 2023.

 

Decision on Micro-units May Be Troubling for Employers

When a union attempts to organize a group of employees at a business, it files a representation petition with the National Labor Relations Board (NLRB), identifying the proposed bargaining unit, which is the group of employees the union seeks to represent and who will be eligible to vote on whether it gets to do so. Sometimes, employers will seek to add additional employees to the union’s proposed bargaining unit, as larger proposed bargaining units may be favorable for employers in representation elections.

In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’ Specifically, the board decided that it will approve a smaller subdivision of employees as a bargaining unit if they meet certain criteria.

Under this standard, unions are likely to be very successful in getting the NLRB to approve micro-units. As a result, employers are placed at risk of having to bargain with several small units of employees in one workplace.

 

NLRB to Surveil Employers’ Surveillance Measures

Businesses regularly monitor employees in the workplace. For example, employers may monitor telephone calls for quality-assurance purposes, install cameras in the workplace or dashcam systems in vehicles, or monitor communications sent and received on employer-owned devices. Such monitoring appears be under attack by the NLRB.

In early November 2022, the general counsel of the NLRB issued a memorandum regarding employee surveillance, in which she urges the NLRB to adopt a “new framework” for determining whether employer surveillance violates the law. Under this framework, violations may occur when the surveillance would tend to interfere with an employee’s rights under the NLRA or “prevent a reasonable employee from engaging” in activity protected by the NLRA.

“In a recent decision, American Steel Construction, the NLRB, which interprets and enforces the National Labor Relations Act (NLRA), gave a powerful tool to unions by clearing the way for small bargaining units, often called ‘micro-units.’.”

This could involve employee surveillance of suspected organizing activity. The employer will then get the opportunity to explain their legitimate, business-based reasons for the surveillance. At that point, the new proposed framework would require the NLRB to weigh the employer’s business needs for the surveillance against the rights afforded to employees under the NLRA. If the NLRB determines that the employer’s reasons outweigh the rights of employees, the NLRB will require the employer to disclose all electronic monitoring, the reasons for doing so, and how the employer uses the information it obtains. This crackdown on employee surveillance impacts unionized and non-unionized workplaces alike.

 

Update That Handbook for New Protected Characteristics

Massachusetts law prohibits employers from discriminating against employees based on a number of protected characteristics, including but not limited to race, color, sexual orientation, and gender identity. Effective Oct. 24, 2022, Massachusetts added natural and protective hairstyles to the list of protected characteristics under the law.

Accordingly, employers need to update their handbooks and other policies to reflect the additions. Your handbook should also include language on many other employment laws, including the state Paid Family and Medical Leave Act.

 

Changes to Paid Family and Medical Leave

Speaking of the Massachusetts Paid Family and Medical Leave Act, last month the Department of Family and Medical Leave released updated model notices reflecting new contribution rates effective January 1, 2023. If you have not already done so, those new notices need to be distributed to your entire workforce as soon as possible. Employers should also ensure that their payroll providers are planning to implement this change.

The department also updated the mandatory PFML workplace poster, which should be posted in a location where it can be easily read by your workforce. The poster must be available in English and each language which is the primary language of five or more individuals in your workforce, if these translations are available from the department.

The department is also considering changes to the PFML regulations intended to clarify employer obligations to maintain employment-related health-insurance benefits while employees are out on leave. Stay tuned in 2023 for developments on these proposed regulations.

 

Speak Out Act Requires Changes to Employment Agreements

On Dec. 7, 2022, President Biden signed the Speak Out Act into law (see story on page 27). The new law prohibits employers from including non-disclosure and non-disparagement provisions applicable to sexual-assault and sexual-harassment allegations and claims in agreements executed before the allegation or claim arises. It does not impact agreements with those provisions entered into after such a claim arises.

Although it may seem insignificant because it only applies to pre-dispute agreements, employers need to carefully review their confidentiality, employment, and other agreements executed by employees and ensure that the non-disclosure and non-disparagement paragraphs in those agreements do not prohibit the employee from disclosing or discussing sexual-assault or sexual-harassment allegations or claims. Employers would be prudent to include language carving out those claims.

Businesses are encouraged to continue to consult with counsel regarding these changes in labor and employment laws. The team at Skoler Abbott also wishes readers a happy and prosperous new year.

 

Amelia Holstrom and John Gannon are attorneys at Skoler, Abbott & Presser, P.C. in Springfield; (413) 737-4753; [email protected]; [email protected]