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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 131: October 3, 2022

George Interviews Ann Kandilis, Springfield Works and the Working Cities Challenge Initiative

Creating opportunities to thrive. That’s the underlying goal of Springfield Works and the Working Cities Challenge Initiative. Ann Kandilis leads that program, and she is the guest on the next installment of BusinessTalk. Kandilis and BusinessWest Editor talk about Springfield Works, a $400,000 Community Empowerment and Reinvestment Grant, and ongoing work to address the needs and goals of those who are justice-system involved. It’s must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

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Employment Special Coverage

What’s in a Job?

team members at Big Y’s St. James Avenue location in Springfield

From left, Nadia Doyle, Leslie Soto, Anialys Gomes, and Michelle Martin, team members at Big Y’s St. James Avenue location in Springfield.

Michael Galat says Big Y has a story to tell, and its employees do, too. And sharing those stories goes a long way toward building and retaining workers in a job market slanted toward job seekers to an unprecedented degree.

“It has been a challenge. Everyone is fighting for top talent,” said Galat, Big Y’s vice president of Employee Services. “We’ve adapted by leveraging our existing workforce to share stories of why they work for Big Y. We’ve got a lot of long-tenured, dedicated people working here, and they’re our best recruiters. We focus on their testimonies, telling their stories about why they want to work at Big Y.”

The supermarket chain has bolstered its workforce efforts in other ways, to be sure, from streamlining the application process to college internships that expose students to career opportunities to hosting a recent series of on-the-spot hiring events. “That’s been a home run for us. Recruitment is an ongoing effort,” Galat said.

But the stories are important, he added, noting that it’s important to build a culture where people want to work when they have other options.

“We’ve updated our career page and social platforms with people’s testimonials — why they like working for Big Y, what makes us different, the flexibility we provide. All those things go a long way to retain people and attract new talent.”

Amy Roberts, executive vice president and chief Human Resources officer at PeoplesBank, says both the company and its employees have a story to tell, and creating the right cultural fit is key to building a stable workforce.

“We’re trying to be up front with individuals about our core values and who we are and that we’re looking for people who are interested in being a part of that,” she explained. “So the process is focused around asking the candidate to tell us stories, tell us things about themselves. We believe that’s really critical.”

After all, it’s not just about bringing in talent, but creating a team for the long run.

Amy Roberts

Amy Roberts

“I think it’s important not to oversell yourself and make the position or company something they’re not; if you do, ultimately a person is not going to stick around.”

“I think it’s important not to oversell yourself and make the position or company something they’re not; if you do, ultimately a person is not going to stick around,” Roberts said. “We try to be up front about who we are as an organization, what’s important to us, how we view success here, and hope that’s best match for the individual. We spend time in the process talking about that.”

For this issue’s focus on employment, BusinessWest spoke to five area employers — Big Y, PeoplesBank, the Center for Human Development (CHD), Bulkley Richardson, and Health New England (HNE) — to get a feel for how challenging the much-talked-about workforce crunch has been for their organizations, and how they’ve shifted their hiring and retention strategies to deal with it.

Carol Fitzgerald, vice president of Human Resources at CHD, admitted that 2021 was difficult, but “I feel like 2022 has gotten better, though there are still some challenges. In 2021, we were losing a lot of folks; it was not only hard to get folks, but our folks were making the choice to leave the field.

“As a large, human-service, behavioral-health organization, we are essential workers, and we work face to face with folks anywhere from birth to elders,” she explained. “And I think a lot of people were deciding during the pandemic not to do this work anymore. So we lost ground in 2021, but we’re gaining ground again. I feel optimistic; it feels less frenetic than it did last year, and it feels like things are improving. We’ve gained about 100 employees over 2021.”

Many of the current challenges are geographic, especially in rural settings, where CHD has dozens of locations. “It’s a lot of geography to cover, and there are fewer people in more rural places, so we’re having a harder time finding folks to do the work.”

Betsey Quick, executive director at Bulkley Richardson, had one of the most positive stories to tell about her law firm’s workforce situation, but, like at CHD, 2021 saw some turmoil.

“That was an unduly interesting time for us, as COVID made people retire faster,” she told BusinessWest. “People who had worked here 10, 20, even 40 and 50 years re-evaluated their work-life balance and said, ‘I don’t need to work until I’m 70. I want to spend money and travel; life is short.’ So we had a slew of retirements we wouldn’t have had, and that punched up our needs quite a bit.”

Carol Fitzgerald

Carol Fitzgerald

“I think a lot of people were deciding during the pandemic not to do this work anymore. So we lost ground in 2021, but we’re gaining ground again. I feel optimistic; it feels less frenetic than it did last year, and it feels like things are improving.”

When the firm started ramping up hiring last year, “all the news in every sector was stating how employees were being poached and salaries were way up; it was an employees’ market. I was fully prepared to have a difficult time because we needed attorneys, we needed staff, we needed management,” she went on. “And for maybe the first three months, I saw the tightness in the market. We weren’t getting responses. We considered going out to recruiters, which we never had to do here. But after about three months, résumés started flooding in.”

 

Passion for Purpose

Sarah Morgan, director of Human Resources and Organizational Development at Health New England, noted that the Great Resignation has affected all employers, but it has also been an opportunity to recruit talented people who are looking for new opportunities or are rejoining the workforce. And many are looking for greater purpose in their jobs.

“This is a competitive recruiting environment we face today; however, Health New England employees know they are helping our members to live more healthful lives and improving the health and well-being of the communities we serve,” she said. “Ultimately, people connect to our role as a hometown not-for-profit health plan and are excited about the possibility of joining that cause.”

At the same time, the pandemic showed all companies how much employees — both current and prospective — value flexibility, and Health New England was no exception.

“Even before the COVID-19 pandemic emerged, we recognized that our employees have different needs, such as around childcare, eldercare, transportation, and the like,” Morgan said. “We respect the individual needs of our staff members and offer flexibility when possible, including the opportunity to work primarily remotely when the business needs allow.”

Betsy Quick

Betsy Quick

“You don’t have to work 6 in the morning to 12 at night and drive people into the ground. People want something different.”

Galat agreed. “We’re highly focused on retention, so we provide flexible work schedules and work-life balance, which is very important in this day and age. People have busy lives; we understand and that try to provide that flexibility for childcare, eldercare, school activities, sports … those things are important, and having that ability to balance their personal life with work is more important than ever.”

At CHD, Fitzgerald added, “we definitely know flexibility is really something people are looking for. While we’ve always tried to be flexible, our jobs are face to face with people for the most part, so we need to be in certain settings. However, during the pandemic, we went to telehealth, and we are trying to maintain a small bit of flexibility for telehealth. Going forward, especially in remote settings, that might work best for us. For example, a clinic in Orange is posting for a position that can be primarily remote. Up there, our managers are willing to talk about any and every way to get somebody to come into work, whether that’s remote or a flex schedule where they can; they’re trying to be creative on an individual basis.”

She added that competition has changed over the past couple years as well. “A lot of service industries are paying a lot more, really crazy rates. So we had to get creative. We offer a lot of hiring incentives and bonuses to come in, and when our employees refer folks. We’re trying to be creative from a compensation standpoint as well.”

Galat says Big Y hosts employee roundtables and focus groups and conducts surveys to get feedback on how the work environment can improve and what employees are looking for, and that information is used as a retention tool. The company also implemented a wage increase in July that impacted 75% of the hourly workforce.

All these efforts are critical because, despite some success stories with hiring, the Great Resignation and a generation of young workers who feel they know their value and want to assert it have created a smaller pool of talent to draw from.

“The highly technical or skilled positions have gotten even harder to recruit for,” Roberts said, “because there’s probably a handful of people who have a certain skill you’re looking for, and they’re either going somewhere else or already have a job and are perfectly happy where they are. Trying to figure out recruiting for those positions has been tricky.

“We’ve engaged recruiting partners and firms to broaden our scope,” she went on. “We’ve had people express interest in 100% remote, and we don’t operate that way, but at the same time, managers who said for years, ‘I want them here on site’ are now open to a more flexible work arrangement, seeing how difficult it is to get people to fill positions.”

Meanwhile, Roberts said, “I think our benefit programs are some of the best around, and we’re always looking at that and asking what else we can be doing. How do we help our people learn and build a career with us? How can we bring in more educational opportunities and help them build their career paths and help them see they have a future here? That goes a long way toward retention, but also from a recruiting standpoint, people want to know they have growth potential with your company. Identifying that process definitely has been key for us.”

 

Culture Counts

As Bulkley Richardson has sought to grow, Quick said, it was clear that “we have a really strong older workforce and a really strong middle, and we didn’t have such a strong younger workforce. So part of our succession plan is to keep that younger personnel coming up behind the bigs so they garner all that knowledge.”

One strategy to bring in young lawyers has been a summer associate program that was revived a few years back. After on-campus interviews and an in-depth review process, three to five candidates are selected every summer, and at the end of the summer, if the fit is right, offers are extended. Of eight offers so far, seven are coming back, and the other one took a clerkship and plans to be back at Bulkley when it’s over.

“We feel like this is a desirable place to work,” Quick said. “There’s been a lot of effort from our executive committee to punch up our vibe so it’s about the humans that work for us, not just about billable hours like a lot of big law firms in big cities. You’ve got to have that component, but you don’t have to work 6 in the morning to 12 at night and drive people into the ground. People want something different.

“COVID has taught us that Bulkley Richardson has always had a super strong family vibe,” she added. “We appreciate your personal time, what happens to you in your life. We really feel that’s paying off. We’re good lawyers and good people, and I feel like this is a positive hiring time for us.”

Galat agreed that culture is key.

“We have employees ranging from 16 to 85. Our people make the difference. We look for individuals that enjoy working with people. This is a people business. We want individuals that want to learn and grow and want to develop others, want to provide exceptional customer service and support our inclusive and belonging culture. Through our employee resource groups, employees share ideas and have a voice in business initiatives and each other.”

At Health New England, Morgan said, “we have been more focused than ever on recruiting people with diverse identities and experiences. More than ever, people want to work for companies that value them for who they are and empower them to bring their full, true selves to their work. We see strength in that and want employees from all backgrounds so we can better serve customers from all backgrounds.”

To that end, Health New England aims to deepen its relationships within the community through participation in local cultural events, job fairs, leadership programs, sponsorships, and more, she noted.

Getting back to the idea of the right cultural fit, Fitzgerald said CHD isn’t looking to hire just anyone, even in a tighter-than-usual market.

“We want the soft skills, the people skills. the relationship skills. That’s important not only for the work we do, but for being able to work with folks who appreciate each other and appreciate differences and have great communication skills and can manage different conversations. These are the kinds of things we’re looking for aside from just technical skills. It’s got to be the right fit.”

After all, she added, the company can train employees on certain tasks, but soft skills and a cultural connection are more organic.

“To have the right mindset about work and fit into that culture, I think those are things that are really important to our people. They care about who they’re working with, who they’re working for, and that translates to how we treat clients and quality of care. It really matters.”

 

Joseph Bednar can be reached at [email protected]

Law Special Coverage

Recent Case Shows the Danger Lurking with ‘Stray Remarks’

 

A recent Massachusetts Appeals Court decision, reversing a lower-court decision to dismiss an age-discrimination complaint, may have repercussions for businesses of all kinds facing a transition in their workforce. The issue — and the ruling — go deeper than just the perceived discrimination itself, however, delving into questions about how much exposure an employer attracts by simply discussing matters of age in the workplace.

By Erica Flores, Esq. and John Gannon, Esq.

 

Erica Flores

Erica Flores

John Gannon

John Gannon

It is common knowledge that older workers are a major part of this country’s workforce. According to U.S. Census Bureau statistics, more than 35% of all essential workers are over age 50, and nearly 15% are over age 60. As the Baby Boomer generation approaches retirement age, employers often wonder whether they can talk to their employees about their retirement plans. Is this allowed, or does it run afoul of age-discrimination laws?

The short answer is that general discussions about retirement plans are fair game. However, the conversation should always be about succession planning and/or transitioning of job duties. And, of course, suggestions about needing “younger” workers must be avoided.

A recent decision from the Massachusetts Appeals Court demonstrates the risks associated with subtle remarks about an aging workforce population coupled with an organizational need to make room for “junior-level talent.”

In Adams v. Schneider Electric USA, the Appeals Court reversed a lower-court decision that dismissed an age-discrimination lawsuit of a 54-year-old employee. The plaintiff in that case was an employee who worked for his employer for many years as an electrical engineer. In January 2017, the employer laid off the employee as part of a larger reduction in force (RIF) related to cost-cutting strategies. The RIF laid off a total of eight employees, all of whom were over age 50. In fact, the employer conducted a series of RIFs over a period of just 10 months that, when combined together, cut 24 employees, all but two of whom were over age 50.

“General discussions about retirement plans are fair game. However, the conversation should always be about succession planning and/or transitioning of job duties. And, of course, suggestions about needing “younger” workers must be avoided.”

The employee sued, claiming his employer terminated him on the basis of his age in violation of Massachusetts law. The lower court dismissed the case before trial, but a divided Appeals Court reversed that decision, concluding that the employee had pointed to enough evidence of age discrimination to require a jury to decide the case.

 

Evidence of Age Discrimination

The majority opinion, joined by three of the five judges who decided the case, found that the Trial Court should not have dismissed the case for multiple reasons. First, the court concluded that there was evidence of a high-level plan to replace aging employees with “early-career” talent and recent college graduates, “from which a jury could find that the RIF itself was tainted even if the person who selected the employees for the RIF [did so] neutrally.” Among this evidence was an October 2015 email from a vice president in the IT department telling an HR professional that the employer needed “age diversity” and “young talent.”

Notably, the comments relied on by the court — including the references to “creating space” for “junior-level talent” and a potential early-retirement program — did not reflect age bias on the part of the person who actually made the decision to include the employee in the RIF. The decision maker had completely neutral, business-based reasons for laying off the plaintiff. In fact, there was evidence in the record that suggested the decision maker and the plaintiff were long-term friends.

Even so, the court felt that there was also evidence demonstrating that, although the decision maker himself did not harbor discriminatory motives, he did have meetings with higher-level managers who were the supposed “architects” of employer’s plan to clear out older employees. Finally, the court pointed to the all-to-obvious fact that all of the employees selected for the January 2017 RIF were over age 50. This fact alone suggested the decision maker “understood the company strategy to discriminate.”

 

Takeaways

Interestingly, the Adams decision was the subject of a strong dissenting opinion joined by two members of the five-judge Appeals Court panel. Among other things, the dissent argued that the majority had departed from the long-standing legal rule that “stray remarks” are insufficient to prove discriminatory bias by holding that the rule can never apply to a manager who has the power to make employment decisions. The dissent also took issue with its apparent intolerance for modern succession planning in industries dominated by aging employees.

For now, though, the majority opinion remains the law, and it will certainly be relied upon by attorneys trying to avoid dismissal in employment cases. What does this mean for employers? For one, it means that management-level employees who have the authority to hire, discipline, promote, terminate, or make other employment decisions must be even more careful about remarks they make in the workplace. Comments that may have previously been brushed aside by courts as nothing more than “stray remarks” may now be considered evidence of a high-level corporate strategy to discriminate against employees in all manner of employment decisions, not just RIFs.

Also, employers who are thinking about succession planning need to be extra careful about the rhetoric they use to describe their concerns, needs, wants, and strategies, especially if their plans involve eliminating jobs. Partnering with employment counsel at an early stage can help reduce legal risk and shield sensitive conversations from being used in any ensuing litigation.

 

Erica Flores and John Gannon are partners with the Springfield-based law firm of Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal laws, including the Age Discrimination in Employment Act; (413) 737-4753; [email protected]; [email protected]

Insurance Special Coverage

Putting a Premium on Measured Growth

Current and future leaders at the Dowd Agencies

Current and future leaders at the Dowd Agencies, from left: Evan Dowd, account executive; John Dowd Jr., president and CEO; Dave Griffin Jr., senior vice president; and Jack Dowd, vice president of Personal Lines.

There’s a framed picture of downtown Holyoke on one wall of the conference room at the Dowd Agencies — downtown Holyoke circa 1870.

The view is looking west along Dwight Street by the first-level canal. City Hall, prominent in the upper-left corner, looks … exactly as it does today. The other side of Dwight Street, not so much — most of the buildings seen in the image have been gone for decades. For perspective, a horse-drawn carriage is moving east down the hill.

John Dowd Jr. said the picture was owned by a long-time client who offered it to him after Dowd repeatedly raved about it. He accepted the offer and gave the picture a prominent home — across the conference room from another framed photo, this one of the insurance company’s founder, James J. Dowd, who went into business just a few decades after that picture of downtown was taken.

Together, the pictures provide some needed perspective — about time, Holyoke, the company, change, what hasn’t changed — and how they all come together. And the juxtaposition of all this will come into even sharper focus in 2023, when the agency, which Dowd claims is the oldest family-owned insurance agency doing business in the Bay State, celebrates its 125th birthday.

“We want to continue to grow, but want to make sure we’re not growing too quickly; we don’t want to get over our skis, as we like to say.”

There hasn’t been much hard planning about how to mark that milestone, he said, adding that he and others will pick up the pace in the coming months and put together some events and programs, as they did for the company’s centennial in 1998.

“We have a few things we’re planning that are in the works,” he said. “We’re trying to do some things that involve the community; overall, it’s an opportunity for us to say ‘thank you’ to the community for supporting us for 125 years and through five generations. That’s an important ‘thank you,’ and we’re thinking long and hard about what we’re going to do.”

In the meantime, the company is taking steps to ensure that it can continue its long history as an independent agency, said Dowd, noting, for example, the latest in a series of recent acquisitions that provide needed size and flexibility at a time of continued consolidation in the insurance industry.

Just last month, the firm acquired the Ideal Insurance Agency in Ludlow, which, like many smaller, family-owned agencies in the area, became available for one of many reasons, ranging from COVID-19 to lack of a clear succession plan to the inability to effectively compete in a market increasingly dominated by larger firms.

photo of downtown Holyoke, circa 1870

This photo of downtown Holyoke, circa 1870, has earned a spot on the wall in the conference room at the Dowd Agencies.

This was the third such acquisition over the past two years, coming after Dowd bought the J. Raymond Lussier agency in West Springfield and the Wilcox agency in Westfield and Feeding Hills. This expansion has given the agency much greater size, and in insurance, as in banking and most all other sectors, size matters, and it bring benefits.

“The advantages come with volume with carriers,” Dowd explained, noting that the firm is roughly 30% larger than it was a few years ago, and almost double the size it was a decade ago. “The more volume you have, the better compensation you negotiate, as well as profit sharing, services, and other perks. We’ve been able to achieve some of that volume leverage through aggregation with other agencies and through M&A.”

Moving forward, the agency will continue to look for opportunities for growth organically, and also through additional acquisitions, said Dowd, adding that it approaches this assignment with an eye toward smart growth and not taking on too much too quickly.

“We want to continue to grow, but want to make sure we’re not growing too quickly; we don’t want to get over our skis, as we like to say,” he noted, borrowing a phrase used often in business to connote getting ahead of oneself with a specific strategic initiative. “A healthy company grows organically and also through M&A. With the M&A, it has to be measured growth, but organic growth is essential — that’s boots on the ground, bringing in new clients, retaining your current clients; that’s good, healthy growth, augmented by acquisition, which comes with debt, which obviously has to measured and balanced.”

Meanwhile, there are other matters to consider, said Dowd, including succession planning for this agency, something that is obviously taken seriously at a company that has been around this long, covets its independence, and wants things to stay that way.

For this issue and its focus on insurance, BusinessWest talked with Dowd about … well, everything conveyed by those two photos in the conference room.

 

Cover Story

Dowd told BusinessWest that the phone calls come maybe once a week, or five or six times a month on average.

They’re from representatives of private-equity firms who want to know if Dowd Insurance might be for sale, and, if so, under what circumstances. He tells them ‘no,’ and in a polite way — at least the first time they inquire.

“I’ll usually have one conversation with them and let them know that we’re not interested in selling and are happy to stay the way we are. And then when they call the next month with the same question, my patience starts to wane, and I start to wonder about how obligated I am to answer every email and every phone call, especially when I’ve already talked to them and told them my plan.”

“They are relentless,” said Dowd of those on the other end of the phone. “I’ll usually have one conversation with them and let them know that we’re not interested in selling and are happy to stay the way we are. And then when they call the next month with the same question, my patience starts to wane, and I start to wonder about how obligated I am to answer every email and every phone call, especially when I’ve already talked to them and told them my plan.”

These days, there are even more people calling and asking about the agency, he noted, and that’s because of those acquisitions over the past few years and the scale they generate.

It’s a somewhat minor annoyance, and at the same time a reminder of the agency’s track record for success, he said, adding, again, that he is polite, but only to a point.

Dowd has other matters to occupy his time, he noted, adding that, overall, the firm is still trying to make its way all the way back to where it was before the start of the pandemic, especially with “behind-the-scenes” work, as he called it, when it comes to quality, efficiency, and serving clients.

“We have a quality team that evaluates what we do and how we do it,” he explained. “They would get suggestions every month from anyone on the staff — ‘here’s an area that I think we can look at and get better at’ — and the quality team would research and come to us with suggestions for developing a plan. That’s an example of an area where we lost some momentum.”

Some momentum was also lost when it came to connecting with potential new customers, he went on, adding that this put far greater emphasis on growth through acquisition, which is exactly what the company did.

“From a revenue standpoint, we were flatlining — if we held onto everything,” he explained. “And we didn’t hang onto everything because businesses were closing. It was a scary time because there was so much uncertainty. But then came the M&A opportunity, and we looked at it and said, ‘this is not a great time to be taking on some debt, but we think this is prudent.”

John Dowd Jr., seen here next to a photo of the company’s founder, Joseph Dowd

John Dowd Jr., seen here next to a photo of the company’s founder, James J. Dowd, says the Dowd Agencies targets controlled, ‘smart’ growth, both organically and through acquisition.

Elaborating, he said the agencies that came into consideration were good fits, culturally and otherwise, and under normal circumstances, they would be consider logical acquisitions. The circumstances weren’t normal, but the times dictated some aggressive action.

“Sometimes you’ve got to stick your chin out there and, when opportunity knocks, take advantage of the opportunity,” he said, adding that this is just what the firm has done.

In doing so, it has put itself in and new different position — an independent agency of considerable size — and it is determined to sell both of those qualities.

“We’re a good-sized agency, certainly in Western Mass., and the only one of our size that is still independently owned — not owned by one of the big guys,” he said. “We like that distinction, and we use it to our advantage. We’re totally local — not only do we live and participate in our community here, we’re also locally owned, and profits go right back here in to Western Mass., and not Chicago or anywhere else.”

But with that independent status comes the challenge to compete with those often much larger concerns, Dowd explained, adding that this challenge, as in banking and other sectors, is very real and becoming more stern with each passing year.

“We’re at a point now where getting to the next level requires a higher level of sophistication in just about every area,” he said. “Obviously, technology is huge because it creates the efficiencies we need. Meanwhile, the labor market is extremely difficult and challenging right now.

“The investment in technology and the way we staff ourselves, the levels of management … all of these important areas have to be looked at and adjusted accordingly,” he went on. “You can’t keep doing things the way you were when you were half the size. You have to be forward-thinking in this business; you have to be looking ahead and be prepared for what may come, and you know the unexpected will happen. You have to be nimble enough to be able to adjust.”

 

Prudent Policy

As he looks forward, Dowd sees the agency doing what it has been doing all along and especially over the past decade or so — seeking to grow organically, but also looking for opportunities to grow through acquisition and expand geographically.

The agency currently has nine locations, all in Western Mass., but it is exploring options well beyond this area code, he noted.

“We’ve looked at Northern Connecticut, we’ve looked at acquisitions in Vermont and New Hampshire, and we’ve also looked at Eastern Mass., toward Worcester, working our way in that direction,” he said, adding that, while the agency serves clients in those areas and others, including Boston and New Jersey, it does not have a physical presence in those locations, but could attain some if the conditions are right.

“In our business, it’s about where your network of contacts takes you and what your appetite for challenge is,” he told BusinessWest. “Do you want to do what it takes to be regional and available and able to support services? You just have to be realistic that you can do what you say you can do.

“We’re careful and selective with regard to companies where there’s some distance,” he went on. “But we’re looking at some relationships in New York right now where we could possibly have an ofice and be able to operate similarly, but on a smaller scale, to what we’re doing here.”

Overall, there are a number of ways to get to the proverbial next level in terms of size and revenues, he went on, adding that, while remaining independent is the preferred route, the agency will consider all its options. “We’re evaluating what steps we need to take in order to continue to grow and build the company.”

Returning to those phone calls he gets from the private-equity firms, Dowd noted, again, that he doesn’t take many of those calls anymore.

“I feel bad about that, but not too bad,” he explained. “I get a lot of messages — they call and they say they’re from such and such firm, and he’s calling again; I talked to him a year or two ago and told him I’ll call if anything changes.”

Nothing has really changed, at least on that front, he went on, adding that there has certainly been change with regard to the company’s size, reach, and position among area agencies.

Over the course of 124 years, many things have changed, but the most important ingredient hasn’t — this is still an independent, family-owned agency.

And as it prepares to mark another important milestone, that’s a quality worth celebrating.

 

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

Special Coverage Technology

A New Gig

SHELD General Manager Sean Fitzgerald

SHELD General Manager Sean Fitzgerald

‘Ahead of schedule and under budget.’

Those are the words that any business owner or board of directors would love to hear regarding a specific project or undertaking. They are not heard often, to be sure, and they are being heard even less frequently, if at all, in these days of soaring inflation, supply-chain issues, and a workforce crisis.

But that phrase can certainly be applied to the ongoing work of the South Hadley Electric Light Department (SHELD) to provide commercial and residential customers in that community with fiber internet service, a project that had the additional challenge of being launched only months before the pandemic arrived in Western Mass.

“In the last financial report we gave to the board, we were under budget and ahead of the construction schedule,” said Sean Fitzgerald, SHELD’s general manager, noting that roughly 75% of the town now has fiber service, with the rest to be built out by July 2024.

The fiber program, which had been known as Fibersonic, has been rebranded as Fiberspring to avoid any potential problems with another internet provider using ‘sonic’ in its name, said Fitzgerald (more on this new name later). It now boasts more than 1,600 customers, including residents, businesses, municipal entities, public schools, and the majority of town departments, and to say the initiative has been successful and is turning some heads would be an understatement.

Indeed, the early success in South Hadley has led to new agreements to provide internet service to nearby towns Leverett and Shutesbury, and inquiries from, and preliminary talks with, other communities, said Fitzgerald, adding that SHELD’s board of directors must now decide just how entrepreneurial it wants to be with this product.

Indeed, the Fibersonic program, similar in many ways to a fiber initiative launched by Westfield Gas & Electric — which Fitzgerald was part of — was initiated with the simple goal of providing better, more reliable service to South Hadley residents and businesses. But its pattern of success, the new contracts with Leverett and Shutesbury, and the potential to add more small towns and even larger communities (there have been talks with Easthampton) have the potential to turn this into a dynamic new profit center for SHELD.

“Customers are streaming more; they’re going into Best Buy, they’re buying a TV that is all streaming,. And with the internet of things, with everything from doorbells to vacuum cleaners connected to the internet, people are increasingly concerned about bandwidth and performance.”

“Originally, the vision from the board was not to expand; it was to improve quality of life for residents of South Hadley — that was the initial plan,” Fitzgerald said. “But in doing that, other towns became aware of us being an option; we did it very well, and we did it to what I would call the gold-standard level, so these expansion opportunities have fallen into our lap.”

SHELD has scheduled a strategic planning event for October, at which discussions will be had about where the utility can go from here with its fiber endeavor and whether further expansion should be pursued.

“That’s a discussion point that the board and I will have to have — how aggressive should we be as a municipal light plant in going after expansion of fiber?” he said, noting that, with scale, the utility can ultimately reduce the cost of the service it provides. “And these are questions we don’t have full answers to yet.”

For this issue and its focus on technology, BusinessWest talked with Fitzgerald about what is now officially known as Fiberspring (the recently detailed trucks with the brand can be seen on the roads), and what the next chapters in this intriguing story might be.

 

A New Gig

‘Big Gig.’ ‘Fiber Galaxy.’ ‘Gazoo.’

Yes, Gazoo, the extraterrestrial character from the old Flintstones cartoon show.

These are just some of the dozens of names Fitzgerald and his team at SHELD considered as they went about rebranding Fibersonic in conjunction with Darby O’Brien Advertising, the South Hadley-based firm that has developed a strong reputation for helping businesses and nonprofits with such endeavors.

As they talked about the process, Fitzgerald and O’Brien said potential new names would be tossed around, with their merits and shortcomings weighed, before most all of them would have to be discarded because they had been completely, or partially, trademarked by someone else. Such is the growth of this sector of the economy, where the word ‘fiber’ has been attached to just about every conceivable noun.

one of utility’s trucks with the new brand, Fiberspring

General Manager Sean Fitzgerald shows off one of utility’s trucks with the new brand, Fiberspring.

Oddly, and both O’Brien and Fitzgerald thought it was odd, and that’s why they made very sure that Fiberspring was not trademarked. That’s the colorful brand name — literally and figuratively — now, or soon to be, seen on trucks, business cards, letterhead, and everything else.

By whatever name it goes, South Hadley’s new telecom business has become an intriguing success story, one that begins with SHELD’s hiring of Fitzgerald in 2017 with the intent of launching a business division to bring fiber to the home. As noted, Fitzgerald had been working for Westfield G&E and had developed the business component for that municipal utility’s Whip City Fiber project.

What eventually emerged in South Hadley was a $17.4 million initiative, said Fitzgerald, with roughly $15 million going toward fiber construction, with the other $2.4 million in funding needed for advanced meter infrastructure, or AMI. It was financed mostly through a $12 million bond secured through the Massachusetts Municipal Wholesale Electric Co. at a favorable 2.7% rate.

As he assembled a team to take this new business division, named Fibersonic, off the drawing board and make it reality, Fitzgerald borrowed from the successful Whip City model in many respects.

These include everything from ordering materials well in advance — a strategy that has brought dividends in these times of supply-chain issues and soaring prices — to the concept of ‘fiberhoods’ — bringing fiber to a community neighborhood by neighborhood.

As he gestured to a map of the town on a large screen in the SHELD conference room, Fitzgerald noted that there are many fiberhoods in South Hadley now, with those currently without fiber to be completed by 2024.

As neighborhoods become fiberhoods, the ‘take rate,’ as it’s called, a statistic that tracks how many households are signing up for the service, is roughly 43%, a good number that grows higher as more residents add the gig-speed service and word of mouth spreads about its speed and reliability.

And as more and more household devices and appliances are driven by the internet — everything from lighting to security to thermostats — demand for fast, reliable service grows.

“Customers are streaming more; they’re going into Best Buy, they’re buying a TV that is all streaming,” he noted. “And with the internet of things, with everything from doorbells to vacuum cleaners connected to the internet, people are increasingly concerned about bandwidth and performance.”

As for ordering materials ahead of schedule, that has been one of the keys, along with a solid team, effective buildout strategy, and staying under budget and ahead of schedule, Fitzgerald said.

“We proactively ordered our equipment and materials in advance, before we knew COVID was coming,” he explained. “I learned that in Westfield, and it was a great strategy.”

As South Hadley adds more fiberhoods, it’s becoming apparent that SHELD’s fiber-service initiative could expand well beyond the borders of that town.

Indeed, just as Whip City Fiber has moved beyond Westfield and into the surrounding hilltowns, Fiberspring is now expanding into other communities.

Shutesbury, northeast of South Hadley, was the first town to enter into a contract with the company, and Leverett, which borders Shutesbury, followed soon after. Those two communities, which both had existing networks in place, will bring another 3,000 customers into the fold.

After that … Fitzgerald said there is potential to expand the footprint in several directions.

“We could go pretty much anywhere in this region,” he told BusinessWest. “The key is the truck rolls — if you have to roll a truck to a customer, you need to be able to reach that customer in a reasonable period of time. If a town in New Hampshire or Maine wanted to hire us, we could do it, but we would probably have to put a satellite building there or a small hub or hire technicians that live in that area.

“Just as Westfield is now serving a number of hilltowns, we can now do the same,” he went on, adding that Fiberspring is now competing with Westfield and other providers. “These towns chose us because of our team and our ability to serve them.”

Moving forward, Fitzgerald said there will be several factors that will determine if, when, and to what degree Fiberspring expands.

“First and foremost, we don’t want to negatively impact the service that we provide to South Hadley — those customers are priority one,” he explained. “Second, we want to make sure we have enough resources to adequately perform any of those contracts. And third, does it make sense for our customers? The whole reason we’re doing this is to reduce the cost to the South Hadley customers and at the same time provide a good service to Shutesbury. But ultimately, we need to show cost savings for South Hadley customers, who are our owner, which we will do with these contracts.”

 

Speed Thrills

Summing up where the telecom business now known as Fiberspring is, and where it could be a few years or a decade down the road, Fitzgerald said everything is happening faster than he or the SHELD board anticipated.

That statement goes for everything from the buildout in South Hadley — again, it’s ahead of schedule — to the expansion of the business into neighboring communities.

That’s a good problem to have — if it’s even a problem — and a business story that bears watching in the months and years to come.

In other words, this new gig — as in gig — has vast potential to be a huge player in this market.

 

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

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 130: September 26, 2022

George talks with Gabrielle Gould, executive director of the Amherst Business Improvement District

Downtown Amherst was among the regions hardest hit by the pandemic. With more than 30,000 students, faculty, staff, and more gone from the equation, it became, in many respects, a ghost town. But it’s staging a strong comeback as the students and everyone else return and many new businesses open their doors. Gabrielle Gould, executive director of the Amherst Business Improvement District, talks about these developments with BusinessWest Editor George O’Brien on the next installment of the BusinessTalk podcast. It’s must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 129: September 19, 2022

George Interviews Square One President and CEO Dawn DiStefano

The challenges facing this region’s nonprofits — and cookies. Those are two of the many subjects that BusinessWest editor George O’Brien and Square One President and CEO Dawn DiStefano discuss on the next installment of the BusinessTalk podcast. There are many challenges confronting nonprofits, obviously, from finding talented help to fundraising. Which brings us to … cookies — the focal point of the agency’s new fundraiser, set for this fall. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

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Features Special Coverage

School of Thought

Rachel Romano

Rachel Romano, founder and executive director of Veritas Preparatory Charter School, shows off one of the classrooms in the recently opened high school.

Rachel Romano says she started Veritas Prep Charter School after becoming frustrated as a middle-school teacher in Springfield with just how ill-prepared students were to succeed — at the next level in their education, and in general.

She called it “unfinished learning,” and it was occurring at many levels, especially with reading.

“They really hadn’t made that shift from learning how to read to reading to learn, which should happen around third or fourth grade,” she explained. “But if it hasn’t happened and they come into the middle school, most middle schools are not designed to keep teaching that, so students really fall behind. When your foundation is weak, there is nothing to build on.”

It was with a desire to provide middle-school students with a better, stronger foundation so they would not fall behind that Romano started Veritas Prep Charter School, opening the doors in a former nursing home on Pine Street nearly a decade ago. And almost from the day it opened, parents and students alike were asking, ‘when are we going to start a high school?’

It took several years, considerable planning, the transformation of what was manufacturing space on Carando Drive, and many other pieces to fall into place, but that high school opened its doors late last month.

As Romano, an educator but also a true entrepreneur (and BusinessWest 40 Under Forty honoree in 2013), put it, in some ways, the new Veritas facility is high school reimagined. This is a career-focused, early-college model designed, like the middle school, to enable students to succeed at the next level — whatever that might be.

“To get two years of college under their belt while still in high school … it just compresses their timeframe to earn a degree.”

For many, it will be college, she said, but higher education is not the goal of every child.

“But every kid should have the choice,” she said. “And if they’re prepared for college … then they have options open to them; the doors are not closed to them.”

The early-college model is just what it sounds like, she noted, adding that students can take college courses while in high school and could even have an associate degree upon graduation.

Having a track record of success in college even before walking across the stage to pick up their high-school diploma instills confidence in students and a mindset that they can accomplish anything they might dream, she said, adding that this model also brings great advantages when it comes to the overall cost of a college education.

“To get two years of college under their belt while still in high school … it just compresses their timeframe to earn a degree,” she explained. “That can be a huge help when they decide to go and get their degree.”

For this issue, BusinessWest talked with Romano about the new high school, but also the broader mission to provide students with that stronger foundation and the tools to build upon it.

 

Grade Expectations

As she offered BusinessWest a tour of the new high school, Romano started in the gym.

The gym is an important part of this equation, she said, noting that the middle school doesn’t have one, and students, parents, and others involved in the design process of the high school identified it as priority.

The gym thus represents an example of how a vision became reality, one that officially started with 90 students (many of them being graduates of the Veritas middle school), teachers, and staff gathering on opening day in late August.

The student demographic at the high school essentially mirrors the grade 5-8 enrollment, said Romano, adding that 70% are Latinx and another 20% are Black. Meanwhile, 83% have what she called ‘high needs,’ and 77% are economically challenged.

The plan is to add a grade a year and build enrollment to roughly 400 students by 2025, she said, adding that for Veritas to realize that size and scope (800 students across nine grades) is something she could not have imagined when she first started conceptualizing this concept.

Indeed, to appreciate where Veritas Prep is now, we need to go back to the beginning, and that’s where we find Romano, a frustrated middle-school teacher, looking to find something better for the city and its young students.

Actually, the story starts in New York, where Romano was working in advertising sales in 2001, and the terrorist attacks on 9/11, which essentially left her homeless and heading back to Western Mass. and her parents’ home in South Hadley. She took a job substitute teaching to essentially get out of the house — “my mom kept nagging me about what I was going to do next” — and wound up loving the work.

She applied for a full-time teaching job in Springfield for the following year and wound up at Duggan Middle School, where she worked for six years and experienced what could be called a stern reality check.

“I didn’t have traditional training as an educator, so I came in with the expectations that had been set for me as public-school student myself,” she explained. “And I sort of believed that education was the great equalizer; everyone got a public education, and if you worked hard enough, you could go on to college and do whatever you wanted.

“And when I began teaching in Springfield, I realized that this just wasn’t true for everyone,” she went on. “My eyes were really opened to the inequity that exists in our public education system.”

What stood out to her — and eventually compelled her to start a new charter school — were the expectations for students and the system’s inability to prepare students for success.

“The expectations for students in Springfield were not that high,” she told BusinessWest, adding that this is how and when the seeds were planted for a new charter school.

“I didn’t have traditional training as an educator, so I came in with the expectations that had been set for me as public-school student myself. And I sort of believed that education was the great equalizer; everyone got a public education, and if you worked hard enough, you could go on to college and do whatever you wanted.”

She started by looking at urban settings with similar demographics but different results when it came to student performance and success.

“We went to New Haven and Boston, where we found schools serving similar populations of students and getting very different results,” she said. “These kids were outperforming their neighboring wealthy districts, like kids in East Boston outperforming kids in Wellesley, and we saw the same in New Haven, and we went and looked at those schools and said, ‘wow, what are they doing?’ They were charter schools.”

The schools were different in some ways, but a common denominator was a needed level of autonomy to “actually respond to the needs of the kids in front of them and create the kind of school and systems that could generate different results.”

Fast-forwarding significantly — getting a charter school off the ground is a lengthy, complicated ordeal — Romano set about creating Veritas, a middle school that would “reset the bar,” as she put it, one that borrowed (‘stole’ was the word she used) best practices from high-achieving schools, set high standards for its students, and prepared them for high school.

And, as noted earlier, it wasn’t long before parents and students alike were asking if the same model could be used to create a high school, questions that grew louder as the first classes of Veritas students were graduating and moving on to the city’s schools.

The cafeteria in the new high school

The cafeteria in the new high school is one of the many aspects of the facility that are state-of-the-art.

Eventually, the chorus became too loud to ignore, she went on, adding that she went to the Veritas board of trustees with the concept of a high school, and the ambitious concept was greeted with enthusiasm.

A request for expansion was submitted to the state Department of Education in 2019, and, upon approval, what became a two-year planning process commenced. With that time, a design team comprised of former students (those now in high school or their first year of college), current students, families, teachers, staff members, representatives of area colleges, and community partners put together for a blueprint for a high school.

 

Course of Action

And by blueprint, she meant not just the actual design of the school — and its gym. Rather, she meant a plan for helping to make sure that graduates of the school would not have doors closed to them.

“We looked at different models, and we looked into what was happening — where is the innovation in high schools now,” she said, putting the accent on ‘we.’ “We focused on what we could do better and what we could do that was different.”

And the chosen model was early college, or EC, as it’s called, she said, adding that it is a somewhat unique model for this region.

“There’s not a lot of it in happening in Massachusetts,” Romano went on. “There’s a lot of talk now in the Legislature and the Department of Education about early college, but there are some great examples in other states.”

Elaborating, she said this is certainly not a new concept — many area school districts have dual enrollment, with students talking college courses while in high school. But this model is different in that it’s “wall to wall” early college and not merely for exceptional students in accelerated programs, as it is in many schools.

“Every student will be able to earn 12 college credits — it’s not for a subset, but for everyone,” she said, adding that, while some might earn as few as 12 credits, some may actually garner two full years of college credits while at Veritas.

“They can literally walk across the stage with a high-school diploma, and an associate degree awarded by Springfield Technical Community College,” she said, adding that STCC and Worcester State University have both signed on partners in the initiative.

“The cool thing about this model is that it really just breaks down the barrier that it’s really tough for a first-generation college student to access college,” she told BusinessWest. “So our kids will actually have a college transcript; they’ll have a track record of success in college when they graduate.”

And, as she noted, having that head start brings advantages on many levels, from a student’s confidence level to the cost of a college education.

“For some of our kids, they may go straight to college, while others will have to go to work, and they’re going to have to finish college at night and on weekends,” she explained. “This just gives them such a leg up because they’re halfway done — they’ve already got it, they’re on a roll, they’ve built some momentum.”

Building needed momentum was just one of the goals for Romano, the Veritas board, and other supporters as they went about conceptualizing the new high school. The overall mission is to eliminate barriers to success, open doors, and provide that leg up that she talked about, and it shows enormous promise for doing all that.

Returning to that question of why and how a high school came to be reality, she said that she and others at the middle school simply didn’t want to let go of their students.

“Many of our students come in not loving school, for whatever reason,” she explained. “School and learning hasn’t been an experience they’ve really enjoyed and felt that they’re really good at; we’ve kind of turned that around for them in the middle grades. By eighth grade, they’re really invested in their education.”

And now, they can continue investing at another important level.

 

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

Commercial Real Estate Special Coverage

A Landmark Decision

The historic Alexander House

The historic Alexander House

Amy Royal first started taking notice of the Alexander House in Springfield when she was a high-school student at nearby MacDuffie, and soon became taken in by its beauty, 200 years of history, and place in the city. Later, she started viewing the property in a different light — as a potential home for her growing law firm. Earlier this year, that dream came true.

Amy Royal says she’s long had an affection for the historic Alexander House in Springfield.

She first took hard notice of it when she was in high school at MacDuffie, located a mile or so away from the home’s former location on State Street. Back then, she recalled, it was a beautiful home with a lot of history, and she’s always had a fondness for structures that fit that description and now lives in a home that is nearly 250 years old.

Later, after beginning her career as an employment-law attorney and eventually starting her own firm, she started looking at the 6,000-square-foot home, built in 1811, in a much different light — as a place to locate her business.

Amy Royal, seen at the grand staircase of the historic Alexander House, has long had her eye on the landmark as a home for her business.

“I’ve always really, really loved the building,” she told BusinessWest. “Everything about it — the design, its place in the city’s history … it’s magnificent.”

These thoughts only intensified after the Alexander House was moved from its long-time location around the corner to Eliot Street to make way for the new federal courthouse in Springfield that eventually opened its doors in late 2008. Royal had business in the courthouse, and eventually found parking a few hundred yards down Eliot Street, necessitating a walk past the Alexander House.

“At that point in time, it was beautiful, but you could tell that it needed a lot of help — even though it had been moved by the federal government, it needed a lot of love,” she recalled. “I remember thinking ‘I wish I could buy that building; I wonder if that building is for sale?’”

Today, Royal is living the dream, literally — the one about moving her growing business, the Royal Law Firm, into the Alexander House’s 14 rooms, and the basement as well.

She’s needed a new home almost from the day she moved into her now-former home, leased space in the large office building at 819 Worcester St. in Indian Orchard. She looked at both options, leasing and owning, and decided that the latter made far more sense.

But owning the Alexander House? Like she said, this was a long-held dream come true.

“I’ve always really, really loved the building. Everything about it — the design, its place in the city’s history … it’s magnificent.”

For this issue and its focus on commercial real estate, BusinessWest talked with Royal about how her affection for this historic home became a quest — and eventually a dream realized. We also got a tour, one that quickly revealed why this landmark has been a career-long pursuit for Royal.

 

At Home with the Idea

Royal said she’s looking forward to being able to walk to the federal courthouse when she has business there, especially when she considers the large amounts of paperwork she traditionally brings with her when she’s in court.

Which … isn’t very often at all, she told BusinessWest.

One of the 14 rooms at the Alexander House

One of the 14 rooms at the Alexander House has become home to the Royal Law Firm’s main conference room.

“We’re civil litigators … if I don’t see the inside of a courthouse in a year, that’s not unusual,” she said, adding that location, location, location, the driving force in many decisions concerning real estate, was only a minor factor in this case. It was the property that drove this decision.

Since launching her own law firm, Royal has had lengthy drives to that federal courthouse. After starting in a small office on Center Street in Northampton, she relocated to larger quarters on Pleasant Street, and remained there until moving her headquarters office — she has satellite locations in several other cities — to a suite of offices in the building on Worcester Street in March 2020, just after the pandemic found its way to Western Mass.

She wasn’t expecting to be looking for a new home so quickly, but rapid growth — traditionally put in the ‘good problem to have’ category, although it does present challenges — made a change necessary.

“I knew we were outgrowing our space where we were — I just didn’t expect to outgrow it as quickly as we did,” she explained. “I just casually started looking for something.”

In a nice twist of fate, this casual search coincided with the Alexander House being put on the market in June 2021, signaling the start of a new chapter for a home that had seen plenty of history and had become historic in its own right.

Designed by the prominent architect Asher Benjamin and built by noted builder Simon Sanborn, the Greek revival home draws its name from its fourth owner, Henry Alexander Jr., a mayor of Springfield who acquired the property in 1958. But it has another, less-known known name, the Miss Amy House, derived from Alexander’s daughter, Amy, who lived in the house for many years and was quite active in the community on a number of philanthropic fronts.

Rooms at the Alexander House have been converted into a small conference room and lawyers’ offices.

The home has had a relatively small number of owners over the years, said Royal, who has come to know the history of the property — she learned in high school that one of the dorms there was designed to reflect the Alexander House — and is always seeking to learn more about it.

When a search was commenced for a home for a new federal courthouse at the start of this century, those involved, and especially U.S. Rep. Richard Neal, became determined to find a location on State Street, long the cultural and historic thoroughfare in the city and home to several schools, churches, and government buildings.

The property on which the Alexander House stood became the preferred location, and to make it happen, a short but complicated — because of the size, age, and condition of the home — move had to undertaken, one that was well-chronicled and captured the attention of the city.

After the move, the home became to several small businesses, including an architect and an attorney, but much of it was unoccupied. As noted, it came on the market in the summer of 2021, and soon after, Royal commenced her pursuit of the home.

Because of that aforementioned move, the home now has a new foundation, one of many features that caught her eye when she toured the property after it went on the market.

“The foundation they put in is incredible — there must be 10-foot ceilings there,” she told BusinessWest, adding that her firm will use that space as a filing center but may eventually build it out.

“I’ve always really, really loved the building. Everything about it — the design, its place in the city’s history … it’s magnificent.”

But there was so much more, obviously.

“I thought it was magnificent — the spiral staircase alone just stood out to me,” she recalled. “But every facet of the architecture — the crown molding, the ornate craftsmanship in all of the trim work, the grand ceilings, the chandeliers, the fireplaces … to me, it just spoke of having a law-firm practice inside; it’s a magnificent place to have a law firm.”

Royal said she heard anecdotally that there were a number of other suitors for the Alexander House when it came on the market. She believes she prevailed because her passion for the property quickly became evident, and she convinced then-owner Thomas Schoeper that she would be a good custodian of the landmark.

“He really wanted someone who would be a good steward of the property and really cared about its history and character and the integrity of the building itself,” she noted. “I spent a lot of time talking with him about all that.”

Royal closed in February of this year and has spent the past several months giving the property that ‘love’ she said it needed. Improvements have included a new HVAC system, an alarm system, remodeling the kitchen, installing IT wiring throughout, and painting many of the rooms, she said, noting that the property is subject to historic covenants and monitored by Historic New England, and also subject to an annual inspection and historic preservation.

The firm moved in a few weeks ago and is still settling in, Royal said, adding that, with a property of this vintage, there will always be work to do.

“That’s going to be a never-ending project,” she said. “That’s the way it is with historic buildings.”

Meanwhile, her new mailing address is everything she hoped it could be and would be when she first started thinking about it as a future home all those years ago.

“Everyone here just loves it — it’s a great place to work,” she said.

 

Right Place, Right Time

Noting the continued growth of her law firm, Royal was asked if the Alexander House provides the requisite space for additional team members.

She said it did, but in a more emphatic voice, she noted that she would not be moving again — soon or probably ever.

“We may grow in other regions — that’s the plan — but this will be our headquarters building,” she said. “This is home.”

 

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

Cannabis Special Coverage

Cannabis in Flux

Aaron Vega

Aaron Vega says cannabis has been a definite economic driver in Holyoke’s downtown and canal district.

 

According to the Cannabis Control Commission (CCC), legal marijuana is now an annual $3 billion business in Massachusetts.

The communities that have embraced it from the beginning, like Holyoke, can attest to cannabis as an economic driver in terms of commercial real estate, jobs, and other opportunities. The city now has four dispensaries, three grow facilities, and a testing lab up and running, with dozens of other applications at various stages of the permitting process — a process, city Planning & Economic Development Director Aaron Vega said, that was always intended to be easy to navigate.

“This community voted in favor. The mayor was in favor. As a state representative, I was in favor. And we didn’t want to make it more difficult. It was challenging enough with the regulations coming down from the state. We saw this as an industry that could take over some vacant and underutilized buildings, and that’s what informed how we went forward.”

That has indeed occurred. “We’re very excited about the investment that has happened — tens of millions invested in these downtown buildings because of cannabis, and 500 jobs that didn’t exist three years ago,” Vega said, noting that the cannabis enterprises themselves aren’t an endgame, but a way to spur even more investment.

“What do you do with 500 people? You make sure they’re going to your concerts, going to your restaurants and events, utilizing your local food trucks. And then there’s the ancillary businesses to the cannabis industry; how do we lure them to the city and make it even more beneficial for companies to do business in Holyoke?”

Other cities and towns have, to varying degrees, told similar stories. But the host-community agreements they’ve put forward have not always been well-received, and that was one of several issues addressed last month by a multi-faceted cannabis bill passed overwhelmingly by the state Senate and House of Representatives and signed into law by Gov. Charlie Baker.

“We saw this as an industry that could take over some vacant and underutilized buildings, and that’s what informed how we went forward.”

Among its main elements, the law clarifies the host-community agreement (HCA) process by authorizing the CCC to prioritize social-equity program businesses and economic-empowerment priority applicants for expedited review.

It also clarifies the scope of HCAs and adds new criteria, mandating that no host-community agreement can include a community impact fee that is beyond the business’s eighth year of operation, the community-impact fee must be reasonably related to the actual costs required to operate a cannabis business in a community, the CCC must review and approve each HCA as part of the license application and renewal process, and all host communities must establish procedures and policies to encourage full participation in the regulated marijuana industry by people from communities that have been disproportionately harmed by marijuana prohibition and enforcement.

“Communities of color across our country have historically been criminalized, prosecuted, and left out of the conversation in regards to cannabis legalization,” state Sen. Adam Gomez said. “When cannabis was legalized in Massachusetts, those same communities continued to be barred from the conversation table and left behind, with historic barriers preventing them from growing small businesses in meaningful ways. The legislation passed by the legislature will remove those barriers.”

The law also expedites the expungement process, Gomez noted. For individuals seeking to expunge a record for previous offenses that are now decriminalized, the law requires the court to order the expungement of the record within 30 days of the request and expunge records for possession or distribution of marijuana based on the now-legal amount.

“It is incomprehensible that anyone who was charged with a marijuana-related offense still has that on their record in our state, especially when you can drive down the street to a dispensary to buy the same product that that person was arrested for,” Gomez said. “I was proud to support this legislation and can’t wait to see cannabis businesses run by BIPOC owners flourish as a result.”

 

Growing Pains

The law makes other major changes as well, including a clarification of the local social-consumption approval process.

The advent of what’s known as cannabis cafés will give renters, public housing tenants, and tourists a legal place to use a legal substance. Under this legislation, a city or town may allow for social consumption sites through the passage of a bylaw or ordinance.

The legislation also creates a trust fund to make grants and loans to social-equity program participants and economic-empowerment priority applicants, which will give entrepreneurs from communities that have been disproportionately harmed by marijuana prohibition and enforcement better access to grants and loans to get their businesses off the ground.

In addition, 15% of the revenue collected from the sale of marijuana and marijuana products must be transferred to the Cannabis Social Equity Trust Fund, which will be administered by the Executive Office of Housing and Economic Development in consultation with a newly created Cannabis Social Equity Advisory Board.

“It is incomprehensible that anyone who was charged with a marijuana-related offense still has that on their record in our state, especially when you can drive down the street to a dispensary to buy the same product that that person was arrested for.”

“This legislation will create a more equitable cannabis industry in the Commonwealth,” said state Sen. Jo Comerford, noting that lawmakers “approached this issue with expertise and compassion, and the resulting bill will bring more diversity and equity to this industry.”

House Speaker Ronald Mariano added that “the passage of this legislation will help to ensure that those who have been historically impacted by marijuana prohibition can find new opportunity in the emerging industry. This legislation will help to support folks who have faced generations of inequality secure the needed capital to launch a cannabis business.”

The loan fund highlights one of the challenges of starting a business that’s technically illegal under federal law. Although there have been rumblings that the U.S. Congress could move to decriminalize cannabis and open up traditional financing to such businesses, nothing has been done so far.

“It’s still a hard-money business,” said Tim Sheehan, chief Development officer for the city of Springfield, and that affects both entrepreneurs and property owners. “That’s challenging from a real-estate standpoint. If that were to change, it would provide a more stabilized financial underpinning for the industry itself, and obviously, that would translate into folks that have space feeling far more comfortable in terms of the security they have relative to leasing and everything else. It would be accepted in the mainstream financial market.”

While Springfield didn’t embrace cannabis in the unfettered way Holyoke did — the city has put forward two rounds of retail applications and one for a grow facility, but that project, by Page Cultivate LLC in East Springfield, was derailed by the City Council in May over a site-plan change and other concerns — many of its leaders recognize the economic value of the burgeoning industry.

“Once it was legalized, there was clearly a focus on it becoming an economic benefit for the city,” Sheehan said. “Much like when gaming was legalized, we looked to see what the economic potential of the cannabis industry would be relative to both city finances and economic impact in terms of the marketplace.

“Much like when gaming was legalized, we looked to see what the economic potential of the cannabis industry would be relative to both city finances and economic impact in terms of the marketplace.”

“Obviously, the industry has had an impact on storefront and warehouse space, and I would quantify that as a positive impact,” he went on, adding that it remains to be seen what kind of impact the cannabis trade will have on the surrounding residential real-estate market.

“Caution is the watchword. As an industry, it remains to be seen what the saturation point is, and I really think that needs to be factored in through the process with regard to how many of these establishments you’re going to allow, whether it be a grow facility or how many retail establishments you’re going to allow. There is a limited market.”

 

In the Weeds

The cannabis industry’s potential is still unknown, though the early results in terms of new businesses, tax revenues to communities, and jobs have been positive.

But Sheehan is right that no one really knows what the saturation point is, if there is one. And the Legislature’s sprawling cannabis bill last month was an admission that plenty about the permitting process — especially for traditionally disenfranchised communities — needs to be addressed.

As Senate President Karen Spilka put it, “I am thrilled we were able to reach a deal on this bill, which will take meaningful steps toward ensuring communities who have historically been harmed by marijuana criminalization can access resources to enter this industry.”

 

Joseph Bednar can be reached at [email protected]

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 129: September 12, 2022

George Interviews Katie Allan Zobel, outgoing president and CEO of the Community Foundation of Western Massachusetts

BusinessWest Editor George O’Brien has a lively discussion with Katie Allan Zobel, outgoing president and CEO of the Community Foundation of Western Massachusetts. The two talk about Zobel’s eventful tenure at the community foundation, the many new programs introduced in recent years, and the evolution of the institution into what she calls a “catalyst for change.” It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 128: September 5, 2022

George Interviews Mark Rivers, event producer for Hooplandia, the giant 3-on-3 basketball tournament coming to the region next summer

BusinessWest Editor George O’Brien has a lively discussion with Mark Rivers, event producer for Hooplandia, the giant 3-on-3 basketball tournament coming to the region next summer. The two talk about how this concept came together, how it survived three years of cancellations and delays due to COVID, and why this tournament, a production, led by the Big E and the Basketball Hall of Fame, has the potential to become a legacy event. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

 

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Features Special Coverage

Meetings of the Minds

Korey Bell says Vistage has acted like a board of directors

Korey Bell says Vistage has acted like a board of directors for small companies who don’t have such a body, and has helped with some important issues.

 

Korey Bell had an issue.

It hasn’t been entirely resolved, but he’s making some real progress, thanks to some other business owners he was able to bounce things off.

The issue concerns pricing of the services provided by his company, Westside Finishing, which, despite that name, is based in Holyoke (yes, it started in West Springfield). More specifically, Bell noted that he held the line on prices, despite inflation and soaring costs of labor, material, and just about everything else, while almost all his competitors had raised theirs. He had questions about what to do and when, but needed a sounding board, like a board of directors.

And he had one in the form of a group of area business owners and managers — many of them in various stages of leadership transitions — called Vistage. This is a global entity with chapters across the country that total more than 23,000 members. The group now serving Western and Central Mass., led by business consultant Ravi Kulkarni, is in its infancy stages, having been formed in the spring.

Bell, the second-generation CEO who took over Westside Finishing from his father a few years ago, was one of the group’s first members. He credits the others in the room with being good listeners, solid providers of advice, and, perhaps most importantly, peers who will hold him accountable when he decides to move forward with something.

“We all do things differently, and that’s a refreshing perspective,” he said. “I may be thinking of attacking a problem one way, but at the meeting, some of the other members are able to ask the questions to get you looking at the problem in a different light. You might come into a meeting with a plan, and by the time you leave, you might have turned that plan on its head, but you’re more comfortable with the plan you came up with with the group then you were with your own.”

“You might come into a meeting with a plan, and by the time you leave, you might have turned that plan on its head, but you’re more comfortable with the plan you came up with with the group then you were with your own.”

Will Maybury, chief financial officer at East Longmeadow-based Maybury Material Handling, agreed. Maybury, son of company president and CEO John Maybury, is poised to take the helm at the company in a few years (there is no firm timetable) and he joined Vistage to help prepare him for that moment and learn from those who already have the title he aspires to.

“Where I saw the biggest value for myself is the growth opportunity the group provided me as someone coming into the CEO position,” Maybury said. “I’m able to surround myself with people who have been in the role and get an outside perspective, while also giving myself some personal growth and networking to help me transition into the role.”

Steve Graham, owner of Toner Plastics in East Longmeadow has been a Vistage member for more than a decade now. He’s not a member of the local group — instead he travels to Boston for meetings there — but is a firm believer of the organization’s power to bring minds together to address common problems and issues, and often help create answers.

“You have an opportunity to speak with other people who are in similar positions of leadership at their companies — entrepreneurs, owners, executives,” he said. “And having an advisory board of sorts, or a board of directors, which is what Vistage boils down to for many of us, is extremely valuable.

William Maybury, now in the process of succession planning

William Maybury, now in the process of succession planning

“You sometimes get reinforcement of an idea that you’ve been thinking about, and it’s just enough to push you over the edge to pull the trigger,” Graham went on. “And sometimes … you get a different view of the problem or the issues that you’re seeking to solve, and it pushes you in another direction; it’s extremely motivating for me.”

For this issue, BusinessWest talked with members of the local Vistage group about what they gain from participation, and how the monthly meetings have helped them become better leaders at a time when managing a business, large or small, has become ever-more challenging.

 

That’s the Idea

As he talked about his group and how and why it was formed, Kulkarni told BusinessWest that there was a clear need for such an entity in Western Mass., where there are few groups of this type focused on bringing young CEOs from diverse industries together around a conference room table.

Those that do exist are mostly regional, with Boston being the closest meeting place, and have requirements for membership that ultimately exclude many of the small businesses in this region. Vistage requires companies to have at least 25 employees and annual revenues of at least $5 million, which brings more area businesses into the mix, he said.

As for how it works, Kulkarni said it’s rather simple — when you put a dozen or so high-performing business executives in a room, these meetings of the minds have enormous potential for creating not only meaningful dialogue about the issues of the day — and there are many of them — but give and take that leads to problem-solving.

“You sometimes get reinforcement of an idea that you’ve been thinking about, and it’s just enough to push you over the edge to pull the trigger. And sometimes … you get a different view of the problem or the issues that you’re seeking to solve, and it pushes you in another direction; it’s extremely motivating for me.”

Elaborating, he said the hallmark of Vistage groups is something called ‘issue processing,’ a structured, thorough approach to helping members think through the dynamics of a challenge.

“It forces you to push beyond your assumptions and get to the real issues,” Kulkarni explained. “That’s critical to understanding and evaluating your options before making a decision and taking action.”

Such was the case with Bell and his issue with pricing and whether to increase his, which we’ll return to later. As he talked about it, Bell said that while Westside Finishing, a powder-coating operation that handles products ranging from cabinets to hand-dryers, has grown exponentially since his father started it as a one-person show and now boasts 65 employees, it is still, in most all respects, a small company.
“We’re not to the size where I would have a formal board of directors that I, as the president or CEO could lean on, bounce ideas off of, or help me with strategizing and planning for the future growth and development of our business,” he explained. “The members of Vistage are all people who have similar, high-level experience in running and managing a business, but at the same time, they have different backgrounds, very similar to what you would find on a board of directors.”

While Vistage is open to business owners and managers at all stages of their careers, Kulkarni said it is especially beneficial to those going through transition, be it in leadership or ownership.

Such was the case with Dave Boisselle, senior vice president of Operations for J. Polep in Chicopee, which has gone from being family owned to being owned by a large conglomerate, National Convenience Distributors. It’s not a small change, he told BusinessWest.

“When you’re sitting in the room and you’re talking corporate, it’s much different from family,” he said. “Family is family; everyone knows what they have to do, and they can talk to each other a certain way. Corporate is all professional, so you choose your words wisely and explain things in much more detail. It’s a much different structure.”

As for his transition to leadership of his company and how Vistage will ease that process, Maybury said he intends to be a sponge and “soak up as much as he can” at the monthly meetings with the goal of being more ready to take the helm. He said he benefits from being in a room where people at different points in their careers and different business situations, can thus provide different perspectives.

“Some people in our group are getting to the end of their careers and want to pass on some knowledge,” he explained. “I’m at the beginning, and some are in the middle; everyone is different, and that brings a lot of perspective to the table.”

Overall, Vistage provides value to members by bringing leaders of diverse businesses who are facing common issues and challenges together in a room to share what are usually different thoughts and approaches to those matters.

Ravi Kulkarni

Ravi Kulkarni says the Vistage group he leads is diverse and looking to add new members from different sectors of the economy.

“People do things differently in their businesses — they have different ideas,” said Graham. “They may have different ways of financing their business that you haven’t considered, for example, and you make some friends.”

Ryan Clutterbuck, president of Pace Engineering Recruiters in Quincy, which specializes in finding artificial intelligence, robotics, autonomous vehicle and high-performance and quantum-computing engineers, and another member of the local Vistage group, agreed.

“It’s beneficial to have a group of people that you can share ideas within a safe environment, where they’re willing to give you direct feedback,” he told BusinessWest. “You can’t always run your ideas by people below you, so you need a group of peers who can give you honest and direct feedback, and that’s what I get out of Vistage.”

Such feedback is what Bell sought, and received, when he brought his ‘issue’ to the group a few months ago.

“This year has been the busiest year in company history — we’ve set four sales records from January up until now,” he said while setting the stage for the discussion that ensued. “The issue brought to the group was ‘I’m busier than I’ve ever been, my margins are pretty good, but I feel that I may be leaving something on the table … because a lot of competitors had gone up 10-fold from what I’d done as far as price increases since COVID started.’

“I wanted to make sure I was charging a fair-market price for the service that I’m offering and make sure I’m not leaving a lot of meat on the bone,” he went on, adding, without going into much detail about his actual plans, that members of the group were able to help him answer those critical questions and others that were brought to the table.

“You can’t always run your ideas by people below you, so you need a group of peers who can give you honest and direct feedback, and that’s what I get out of Vistage.”

This is the essence of issue-processing, said Kulkarni, adding that members ask clarifying questions and, by meeting’s end, have the member in question much closer to moving beyond asking questions and acting. And once this action is taken, these same group members will follow up and hold the members accountable for the actions taken, again, similar to the way a larger company’s board of directors would.

Boisselle agreed.

“When it comes to issue-processing, first members listen and then they ask questions and ultimately give suggestions,” he said. “And you start changing your perspective on how you’re going to do things; asking the questions gets you to start thinking, then the advice comes, and then you connect everything together and decide how to move forward.”

Clutterbuck brought his own issue — one of scalability and the personal mindset to accompany such possible growth — to the group and came away with the feedback he was seeking.

“I’d gone through the roller-coaster of ‘are you building to scale or are you building to get to a certain level and then sustain?’” he said. “So, I brought an issue to the table that was related to more my personal mindset of what should I be doing from a target standpoint and a growth standpoint that’s going to beneficial for both the company and the family and making sure I’m not burning out on either end.

“It certainly helped me reset and get back to the original plan that I had developed for the business and the direction I wanted to go in,” he went on as he recalled this issue-procession session. “It was a good conversation to have, because there’s no one else I can have it with.”

 

Meeting Expectations

Moving forward, Kulkarni said his immediate goal is to recruit more members — “we’re looking for those who are hungry, humble, and smart” — and bring the number of business leaders in the room closer to 12, the desired sweet spot.

Doing so will bring more voices to that table and more processing of critical issues facing area business owners and managers.

These company leaders do not have their own board of directors, but they can share one. And this is the essence of Vistage, summed up effectively and concisely by Clutterbuck.

“They say it’s lonely at the top; I don’t necessarily agree with that, but you don’t have a lot of sounding boards,” he said. “It’s not like you can bring these conversations to your employees or people within your organization because they’re deeply personal. This is a good group of people to have real conversations with.”

 

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

Insurance Special Coverage

Into the Breach

 

 

 

When hackers gained access to a large retailer’s computer network through scam emails to employees, more than 900 store locations were affected, and 2 million customers were impacted before the company was alerted by a security blogger six months later. That led to several class-action lawsuits against the company, attorney generals in multiple states opened investigations, and the affected credit-card companies issued fines.

In another case, a ransomware attack blocked all access to a regional accounting firm’s computer system, and also deleted files. After ransom was paid, it took several days to restore the applications and recover deleted files from a backup. As a result, the firm was unable to meet tax-filing deadlines, causing brand and reputation damage.

Then there was a company that provides technicians to a laptop manufacturer’s repair center. While a young woman’s laptop was in the custody of technicians at the center, her Facebook account was hacked, and several sexually explicit photos were posted to it. She negotiated a quick multi-million-dollar settlement with the laptop manufacturer, which demanded, in turn, that the staffing company compensate it for the privacy breach.

These are only three of many real-life cases detailed by the Hartford Financial Services Group as warnings that companies of any kind and any size are vulnerable to cybercrime.

“That’s where insurance comes in, to mitigate the cost of a claim,” said Chris Rivers, senior vice president of Phillips Insurance Agency in Chicopee. “Small businesses sometimes feel they have less risk than larger ones, but that’s not the case. Anybody can be hacked and be held ransom or have data get out.”

Breaches can come at all severity levels, he noted, from a simple Facebook hack to an attack that steals credit-card information or Social Security numbers from tens of thousands of consumers.

Chris Rivers

Chris Rivers

“Small businesses sometimes feel they have less risk than larger ones, but that’s not the case. Anybody can be hacked and be held ransom or have data get out.”

The Hartford reports that the average cost of a data breach in 2020 was $3.86 million, and the U.S. will account for half of all breached data in the world by 2023, when an estimated 33 billion records will have been stolen by cybercriminals.

One of the more severe types of attacks, those involving ransomware, take place every 11 seconds, and the average ransom payment increased to more than $233,000 in 2020. Such attacks result in an average of 19 days of business interruption and downtime.

Again, it’s not just large companies at risk of cyberthreats of all kinds, said Jack Dowd, vice president of Personal Lines and a commercial risk consultant for the Dowd Insurance Agencies in Holyoke.

“The percentage of small businesses that are targeted is significant,” he noted. “A lot of the people doing this know that a lot of small businesses don’t have the infrastructure in place that a larger business does and are more susceptible to attack, and that’s why they’re attacking them.

“It’s important to know, if you’re taking credit cards or you have a system where you store any type of sensitive information with clients, you’re vulnerable,” he went on. “We’ve seen them target people who wouldn’t think they’d be typical targets, and your best course of action is to protect yourself as best you can, and that would include looking into cyber insurance.”

 

Costs Pile Up

According to the Philadelphia Insurance Companies, the average cost of a data breach is $204 per lost record, with more than half of such costs attributable to lost customers and the associated public-relations expenses to rebuild an organization’s reputation.

That’s one reason why cyber insurance policies cover two distinct classes of loss: first-party and third-party.

First-party coverages include loss resulting from damage to or corruption of electronic data and computer programs; income reimbursement during the period of restoration of the computer system; customer notification, regulatory fines and penalties, and public-relations expenses; and reimbursement for extortion expenses, among others. Third-party coverages, on the other hand, include legal liability for financial damage and privacy violations involving customers, employees, and other third parties.

“Network-security liability is a coverage that will provide defense and settlement costs in the event a third-party claimant sues the insured over a failure to secure their own computer system,” Dowd explained.

Jack Dowd

Jack Dowd

“If you’re taking credit cards or you have a system where you store any type of sensitive information with clients, you’re vulnerable.”

But he warned that these expenses can total much more than the client anticipates. In fact, insurers often include sublimits on certain specific types of losses, and it’s up to the insured party to purchase higher limits.

“A lot of insurance companies give a certain amount, say $50,000, toward notifying people they’ve been hacked. But the notification costs alone, depending on the size of the client book, could be more than that. Then there’s the cost to rebuild data, the cost to secure their network … a lot of things go into cyber insurance that people don’t always consider.”

Rivers agreed. “Within the insurance industry, a lot of carriers have thrown in some smaller sublimits that weren’t there in the past. But you can always buy more, up to what you want.”

It’s easy to see why they would. The Philadelphia Insurance Companies lists many breaches over the past several years that affected thousands of customers, like the international hacking group that gained access to the computerized cash registers of a restaurant chain and stole the credit-card information of 5,000 customers, starting a flood of fraudulent purchases around the world.

Or an employee of a Massachusetts rehabilitation center who improperly disposed of 4,000 client records that contained Social Security numbers, credit- and debit-card account numbers, names, addresses, telephone numbers, and sensitive medical information. The center settled the claim with the state and agreed to pay fines and penalties as well as extending $890,000 in customer redress funds for credit monitoring on behalf of the victims.

Selective Insurance Group relates the case of a payroll employee at a plastics manufacturing company who received a spoofed email from a scammer purporting to be the CEO, requesting that the employee send all employees’ W2s immediately. Which he did, and multiple employees reported that fraudulent tax returns were filed in their name.

This last example is a case of what’s known as ‘social engineering,’ and such phishing attempts have become more savvy and authentic-looking. “They’ve gotten a little more sophisticated in recent years,” Dowd said, which is why companies, often encouraged by their insurance companies, initiate training to reduce the chances of human error causing a breach.

 

Closing the Circle

Insurance companies provide another human element to the fight against cyberthreats, Dowd said.

“If you have a cyber policy, you have a place to go, a place of refuge, if you will. If you ever go to work Monday morning and your system is hacked and someone is demanding a ransom payment, you don’t know where to begin. But if you have cyber insurance, you can call the company; they’ve been through this many times, and they’ll tell you exactly what to do. It gives you a starting point you wouldn’t have otherwise.”

When quoting a policy, he added, an agency might run a test of the company’s system and let it know of any holes that need to be closed, Dowd added. “Even if you don’t proceed with coverage, at least you know you have those entry points, and you can pass it on to a person able to close those gaps for you.”

Insurers may also supply clients with training and quarterly check-ins, he added. “They’ll have your employees take these quizzes that will supply them with real-life incidents that happen in the cyber world, and have them identify the errors or signs that they were fake or malicious; they can actually give you some real-life practice on that.”

Rivers said many insurers provide an online help center, but many clients don’t use that resource, instead hiring a computer specialist to make sure the company has the correct virus and malware protection and that there are no gaps in security, in both the hardware and human realms.

However they delegate it, keeping up to date with the latest threats, strategies, and technology is critical, he added. Even though there’s a cost associated with that, it can pale compared to the cost of a breach.

“It’s something that is out there, and everyone can be impacted by it, no matter how small or how big they may be,” Rivers told BusinessWest. “The reputation of a company can certainly be impacted by it. It’s something people don’t always think about — or want to think about. They say, ‘I only have a couple computers; it can’t happen to me.’ But it can.”

 

Joseph Bednar can be reached at [email protected]

Special Coverage Women in Businesss

Getting Employees in the Game

 

Linda Dulye

Linda Dulye

Linda Dulye calls them ‘spectators.’

That’s the term she uses to describe employees who, well, are not in the game, as they say in the sports universe. Instead, they’re watching it from the sidelines. They’re not engaged, and they are not part of the solution, said Dulye, the former journalist turned corporate communications specialist and change-management agent turned entrepreneur who started Dulye & Co. in 1998 to help leaders and their organizations cultivate magnetic cultures where people want to stay and grow.

The Pittsfield-based company, which counts Lockheed Martin, General Dynamics, Cigna, and other global companies on its client list, helps guide these firms to achieve a ‘spectator-free’ workplace through meaningful connections, open communications, and mutual respect.

“If you’re paying people to show up, put a badge on, and complain all day, all they are … are spectators,” she explained. “And spectators don’t add depth. If you’re going to just leave them on the benches watching, that’s a bad business strategy. Your goal is to be spectator-free, have them down on the field helping you move forward and score.”

Such sentiments have always been important to the success of any organization, large or small, she told BusinessWest, but they are even more critical in this time of profound change in the work environment brought on by the pandemic and related forces.

“This has been the most dramatic change I’ve ever experienced in my consulting career,” Dulye said, adding that, at this critical time, communication and engagement have never been more important, but they have also never been as challenging.

Overall, she said companies large and small have historically waited until a time of profound change, or crisis, before addressing issues such as culture, communication, and engagement. Her simple message is not to wait.

“Let’s not wait for a crisis,” she said. “Let’s be pre-emptive; let’s realize that everything in building a spectator-free workplace is a great business strategy, not just when something catastrophic has happened.”

While helping companies become more connected and engaged — two words she used very early and quite often as she talked about her work — Dulye has also committed herself to helping the next generation of leaders thrive in an ever-changing work environment.

“If you’re paying people to show up, put a badge on, and complain all day, all they are … are spectators. And spectators don’t add depth. If you’re going to just leave them on the benches watching, that’s a bad business strategy. Your goal is to be spectator-free, have them down on the field helping you move forward and score.”

Indeed, she created the Dulye Leadership Experience (DLE), which offers year-round developmental and networking programs (such as an upcoming program on cryptocurrency) and, especially, an intense two-day retreat that, after two years of being a virtual event, will again be in-person in early November.

Applications are currently being accepted for the conference, and 45 individuals from different business sectors will eventually be chosen to attend the retreat, which “is a not a conference,” she said with considerable emphasis in her voice. Instead, it is more of an immersion, where young people hear from experts, who stay for the entire weekend, on various subjects with the goal of improving vital skills and stimulating networks for career and life success. The accent, as it with Dulye’s business-consulting work, is on collaboration and connections.

The DLE is a nonprofit endeavor funded by Dulye, who said she created it because there has always been a strong need for such programming, and that need has also been magnified given the changing landscape in business.

“I invest quite a bit in this because I believe in philanthropy,” she said. “And I believe in helping others see — and seize — their best.”

For this issue and its focus on women in business, we talked at length with Dulye about entrepreneurship, the leadership experience she created, changing dynamics in the workplace, and, especially, about how she helps companies convert employees from spectators into engaged team players.

 

Dulye Ink.

Looking back on her life and career, Dulye said she had several important role models and mentors, starting with her parents, who were both entrepreneurs.

Her father ran a chain of small newspapers in New York’s Lower Hudson Valley, while her mother started a commercial printing business, a field that was totally dominated by men at the time.

“When you grow up in family business, or businesses, you learn every facet of a business,” she said. “You also learn that you get paid last, and you learn that employees are what enable you to go to college — my parents’ employees enabled me to go to college — and you learn that every single person is vital; it doesn’t matter what their title is.

Linda Dulye says the Dulye Leadership Conference has evolved over the years

Linda Dulye says the Dulye Leadership Conference has evolved over the years, but its mission remains unchanged — to help young people gain the skills and confidence needed to thrive in an ever-changing workplace.

“I got my hands dirty, and I got humbled by both my parents,” she went on. “I never had cushy jobs, and I had to earn my promotions; I never wanted to be the kid that was the boss’s kid. I learned how to love work, and that’s important; I love what I do, and my parents loved what they did.”

Growing up, she worked in both businesses, starting with her mother’s shop when she was 8. By age 13, she was writing obituaries for her father’s papers “back when writers wrote the obituaries, not the funeral homes,” before moving on to the police beat and other assignments.

Meanwhile, her mother’s entrepreneurial spirit and willingness to go where women traditionally didn’t go, job-wise, certainly inspired her throughout her career.

“My mother was a novelty — there weren’t a lot of women business owners at that time, and I learned a lot from her,” she recalled. “Most of the industries I was in were male-dominated, and I learned how to express my views in a confident way and how to form relationships with people who were going to be very judgmental of me, because I’m the token female out there, so I have to prove myself a little bit more.”

But there was something else she took from her mother that stayed with her through all her various career stops and especially when she went into business for herself.

“She could look at a cloudy sky and always find that patch of blue,” Dulye said. “And it was finding that patch of blue every day — in your work, in your life — that stuck with me. Sitting in rooms where people would ask me when I was going to be serving the coffee, even though I was part of the leadership team at the table, was pretty typical — but I always looked for that patch of blue.”

Dulye didn’t want to go back to either of her parents’ businesses after graduating from Syracuse University, so she went to work for a daily newspaper in suburban Philadelphia called the Bulletin. Her real ambition, she told BusinessWest, was to be a sports journalist, but at the time, the field was mostly closed to women, so she stayed on the news side, while maintaining a love of sports that can be seen in the terminology she uses and references to getting employees into the game and off the bench.

Fast-forwarding a little, Dulye, seeking a better-paying profession, eventually segued into corporate communications, starting at Drew University while earning her master’s degree. With a desire to work for large corporations, she went to work for GE in Pittsfield and later New Jersey and Pennsylvania.

She joined the company in the late ’80s, at a time of dramatic downsizing, a period that provided several critical learning experiences she would apply later in her career.

“There’s was lots of learning about culture, about people, about effective leadership, about communication — you were communicating some of the toughest messages ever,” she recalled, adding that she worked for tough bosses, including Jack Welch, who were “ahead of their time in many respects.”

As GE was in the process of selling its aerospace division, she moved onto Duracell, then Allied Signal and Public Service Electric and Gas.

She made a number of job changes at a time unlike today, when such movement is expected and even appreciated by many of those doing the hiring, because she wanted to be in different environments, experience different organizations, and learn from different leaders.

“I wanted to experience different cultures and leadership styles and get smart in different industries,” she said. “Even though I knew family business, I wanted to learn global business.”

Eventually, after growing tired of lengthy daily commutes to work, she decided to go into business for herself, essentially to pass on to business leaders what she had learned while working for her parents, but also while working in corporate America.

“I knew what companies needed most,” she explained. “They needed people to help their leaders connect with the front-line folks, to help explain change, to help get people motivated, to move forward with goals. With all the work I had done, I wanted to focus on leadership communication and employee engagement.”

 

Connecting the Dots

As she talked about her business and the value it provides to clients, Dulye focused on that word ‘engagement,’ its importance in the workplace, getting people to be part of the team in question, and having them help leadership run the business.

Which brings her back to the importance of having a spectator-free work environment, which businesses appreciate, even if they know they need help to achieve such an environment.

The key, she said, is to give employees the opportunity to get on the playing field.

“My mother was a novelty — there weren’t a lot of women business owners at that time, and I learned a lot from her. Most of the industries I was in were male-dominated, and I learned how to express my views in a confident way and how to form relationships with people who were going to be very judgmental of me, because I’m the token female out there, so I have to prove myself a little bit more.”

“Which means you have to share information, you have to be open to their ideas, and you have to involve them in making decisions on how the business needs to move forward,” she explained. “Otherwise, you’re going to have spectators; that means really stopping, listening, and having conversations, not presentations.

“Presentations do not build relationships; conversations build relationships,” she went on. “That’s what leaders, more than ever, need to do. “Leaders say, ‘I don’t have time’ — and I understand, time management is a massive challenge. However, if you don’t have time to help your people understand what’s going on and why and you think it can be done better, then you’re losing out on the greatest resource you have to help you improve as a business — and as a leader.”

Finding time and becoming spectator-free is obviously challenging, said Dulye, adding that it almost always requires adjustments in culture and leadership dynamics, with a hard focus on upgrading people skills, processes, and practices that ultimately create what she calls a “connected organization.”

Providing critical help with this complex assignment through tools such as its Engagement through Action Planning Process has enabled Dulye & Co. to grow and consistently add new clients over the years, she went on, adding that there have been times — the Great Recession of 2008 was one of them, and the early months of the pandemic was another — when even the largest corporations cut back on consultants.

And it was during what became a very slow period for the company in the fall of 2008, when the company lost 80% of its work, when Dulye found a patch of blue and conceived of what would become the Dulye Leadership Experience.

“In my consulting work, I was noticing that the new grads coming into the businesses really weren’t prepared to integrate well,” she recalled. “They were very smart in their technical majors, but they’d gone from a bubble of being able to pick their friends, being able to hang around a lot of people their own age, and being able to know when there was a test because they would get a syllabus and knew what to read, to showing up and not knowing anyone, and being in a hodgepodge, diverse team that they didn’t pick, with people having all kinds of issues going on that are very different generationally. They need to form relationships and strong communication bonds, and they need to know how to sell themselves and their ideas.”

The DLE, originally established in partnership with Syracuse University, was created as a philanthropic, nonprofit organization to help undergraduates cope with all that and successfully transition to the workplace.

But like any successful business, it has responded to change and evolved over the years.

Indeed, when Dulye moved to Western Mass. in 2017 to re-establish her home and business, programming shifted to attract, develop, and retain young professionals in the Berkshires. And with the pandemic and the dramatic changes it has brought to the workplace, the DLE shifted again, to virtual programming that escalated in frequency and variety and succeeded in attracting a more diverse professional network that now stretches from coast to coast and beyond, she told BusinessWest.

“We started moving and creating new programming every single week to connect people, which means connecting people from all over,” she explained, adding that an alumni group was established, and programs like a ‘breakfast club’ and chat initiatives were created to involve more individuals at a time when technology allowed that to happen.

The DLE soon added workshops on a variety of topics, from public speaking to time management, to provide more and different learning experiences, most of them inspired by polling and questions like ‘what are you struggling with?’

This shift can be seen in the latest offering, an ownership workshop titled “Demystifying Cryptocurrency,” slated for Sept. 20. The one-hour, virtual conversation will feature nationally recognized experts Paul Farella and Alexandra Renders of Berkshire-based Willow Investments, who will discuss, among other things, what blockchains are and how they work, the impact this technology can have on business and society, and the risks and opportunity that exist in this realm.

This workshop is an example of how the DLE works to educate and inform, while helping emerging leaders succeed in a business world where change is the only constant, Dulye said.

As for the upcoming annual retreat, it is, as she noted earlier, an immersion in every sense of the word.

“It’s three days in the Berkshires — you stay at this compound; you don’t come and go like at a conference where you go to a 9 o’clock session and then hit Starbucks at 10 and go back at 11,” she explained. “Once you come in on Friday night, you can’t leave until Sunday, at all, and you need to stay fully engaged with everyone there.”

There’s that word, engaged, again.

Summing up the retreat, Dulye said the goal, the mission, is to get participants to “learn like mad and get out of their comfort zones,” and it has been this way since she first launched the initiative in 2008.

 

Bottom Line

Flashing back a half-century or so, Dulye remembers when her mother took what was a huge risk at that time and invested heavily in a Goss Community press to take her commercial printing enterprise to the next level.

“People would come into her business from all over the world to look at this press,” she recalled. “I have no idea how much she probably put on the line from our family finances and going into debt — although my father had to sign for everything, because women couldn’t do that then. That, I remember, was groundbreaking.

“And I wanted to experience a lot of groundbreaking events in business,” she went on, adding that she certainly has. But, more than experience them, she’s been part of them, through her work as a consultant, but also through creation of the Dulye Leadership Experience.

In both realms, she’s focused on facilitating success in a changing workplace and, as she said repeatedly, helping business leaders create a place where there are no spectators.

 

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

Community Spotlight Special Coverage

Community Spotlight

Jeff Daley says the Ludlow Mills project is at an important turning point.

Jeff Daley says the Ludlow Mills project is at an important turning point.

When Westmass Area Development Corp. and its board of directors went all in and acquired the massive and environmentally challenged Ludlow Mills complex in 2011, Jeff Daley said, they did so with the understanding that they were embarking on a long and difficult journey.

But they probably didn’t know how long and just how difficult.

Indeed, the process of transforming the former jute-making complex into a mixed-used property and destination has come complete with a number of challenges, many of them related to simply making various parts of the complex ready for redevelopment, said Daley, the executive director of Westmass since 2019.

But, in many respects, the Ludlow Mills redevelopment initiative has turned a critical corner, he noted, adding that much of the work to ready specific buildings and the property as a whole for development has now been completed, and the focus, increasingly, is on development.

“We’re certainly at a turning point, where we’re focusing our efforts on redevelopment as opposed to staying afloat and cleaning the site — it was a very dirty site back when they first bought it,” he told BusinessWest, referring to asbestos and ground contamination. “And there’s still a lot of cleanup left to do, but the focus is shifting from preserving and investing in the cleaning of the site to continuing that cleaning, which we need to do, but also looking now toward projects that we can invest good dollars in and get good returns from.”

“There’s a sense of place there as you come over the bridge. And we feel that this is an area that’s untapped and could be refreshed a little bit in terms of the roadway infrastructure and facades.”

That is certainly the plan, and the hope, with Building 8, or what many refer to as the ‘clocktower building,’ because it is home to the town’s most recognizable landmark.

With some imaginative financing assistance — Westmass will actually be taking an equity stake in the project — Winn Development will soon proceed with an initiative to transform the property into a 96-unit housing complex with retail on the ground floor.

Meanwhile, a $1 million project to put a new roof on Building 11, the largest structure on the campus, is underway, with the goal of facilitating development of that 480,000-square-foot property into another mix of housing and commercial businesses, and perhaps a parking garage as well.

Also, work is nearly complete on Riverside Drive, a new road that winds along the Chicopee River, which will connect the front of the property to the undeveloped acreage at its eastern end. Another road, hopefully to be funded with a MassWorks grant (word on the application should be received in the fall), will be built into that property, greatly facilitating its development, said Daley, noting there has been a good deal of interest expressed in that property due to a shortage of developable land in the region.

While the Ludlow Mills complex is certainly the dominant business story in Ludlow, there are other developments of note, starting in Town Hall. There, discussions continue about whether and how to change the community’s form of government, said Marc Strange, the recently hired town administrator.

“Officials are considering a mayoral form of government or a town manager/town council format similar to what exists in East Longmeadow,” said Strange, who served previously as director of Planning and Economic Development in Agawam and also as a selectman in Longmeadow, noting that the town has certainly outgrown its current format with five selectmen, a town administrator, and town meeting.

Karen Randall

Karen Randall says the business started by her father 60 years ago, has grown and evolved, just as Ludlow has.

“That’s a pretty big lift, and the town needs to be on board with it,” he explained. “For now, we’re chipping away toward that goal and making small, incremental changes to get everyone working in the same direction.”

Meanwhile, the community is looking to fund improvements to the downtown area that greets those as they come over the bridge that links the city to Indian Orchard, said Strange, adding that, while Ludlow has a large and diverse business community, it is always looking to build on this base.

“There’s a sense of place there as you come over the bridge,” he said. “And we feel that this is an area that’s untapped and could be refreshed a little bit in terms of the roadway infrastructure and facades.”

For this, the latest installment of its Community Spotlight series, BusinessWest turns its lens on Ludlow, a community that is a developing story in every sense of that phrase.

 

Growth Patterns

As she talked with BusinessWest outside the main entrance to Randall’s Farm, the business that her father started with what amounted to a vegetable stand, Karen Randall reflected on how much this enterprise — and the town of Ludlow itself — have changed over the past 60 years.

“None of this was here,” she said as she swept her hand in front of her and pointed out the many businesses now located along Center Street. “Ludlow has grown, and we’ve grown with Ludlow.”

Elaborating, she said the town benefits from its location — off turnpike exit 7 and near a number of growing residential communities, including Wilbraham, Granby, Belchertown, and others — and from its own growth; it has seen a number of new residential developments in recent years that have brought many young people to what was an industrial town that grew from the Ludlow Mills complex.

“If we can create some kind of plan for that area, that will be helpful, in terms of letting the development community know that we’re open for business and we’re ready to go if they want to come to Ludlow and put some shovels in the ground.”

Randall’s Farm has certainly benefited from the growth in and around Ludlow, she said, adding that it draws regular, daily traffic from those living in the community, but also steady traffic from those an exit or two down the pike.

“We have customers from within a 20-mile radius,” Randall said, adding that business has been solid this year, and she is expecting the fall, the busiest time for this enterprise, to be very busy as the region continues the two-year-long process of returning to normal from the pandemic and its many side effects.

The pandemic and its aftermath have brought changes at Randall’s — it has discontinued many of its entertainment-related endeavors, including a corn maze and workshops on various subjects — and challenges, including the workforce issues that have impacted businesses in every sector.

Overall, the pandemic has been for Randall’s what it has been for many business ventures, she said — a valuable learning experience.

“COVID taught us a lot of lessons on what works and what doesn’t, and it’s taught us that we can adapt quickly to whatever was coming down the pike,” she explained. “We didn’t miss a beat; we had the same issues that everyone else did — some people may have retired sooner, while others stopped working sooner during the first months of the pandemic, but we persevered, and I think we become stronger because of what we learned.”

Heading into the busy fall season, Randall’s, like other businesses, continues to face workforce challenges — there are some days when it does not have a donut maker, for example — but Randall believes it will be ready. The biggest challenge may be climate, specifically a lack of rain and its still-unknown impact on pumpkins, apples, and other crops grown locally.

“We’re hiring front-line people — we think we have the donut-making issue squared away — and we’re getting ready,” she told BusinessWest. “And we’ll see how this drought effects the season.”

planned redevelopment of Building 8 at the Ludlow Mills

Crews work to create a parking lot for the planned redevelopment of Building 8 at the Ludlow Mills, one of many new developments at the complex.

Overall, Ludlow has a large and diverse business community, said Strange, adding that one of the town’s goals is to improve infrastructure and make the Center Street corridor more attractive and even more of an asset.

Which brings him back to that area, technically the community’s downtown, that greets people coming over the bridge from Indian Orchard. The town will apply for a Community Compact grant to develop a broad economic-development plan that will encompass that area and others in the community.

“There’s some successful businesses in there, but we also have some empty storefronts,” he explained. “Our Memorial Park is there, and that’s where we’ll have Celebrate Ludlow. I think there’s a foundation for something special by way of economic development in that corridor.

“If we can create some kind of plan for that area, that will be helpful,” he went on, “in terms of letting the development community know that we’re open for business and we’re ready to go if they want to come to Ludlow and put some shovels in the ground.”

 

Run of the Mills

There should be some shovels hitting the ground soon at at Ludlow Mills, which has certainly been the focal point of development in Ludlow over the past decade. Indeed, continued progress is being made in what will be at least a 20-year effort to put the various spaces — as well as 40 acres of developable green space — to new and productive use.

Running through recent and upcoming developments, Daley started with Building 8, a long-awaited project that will bring another residential complex to the site after the highly successful renovation of Building 10 into apartments; there is now a lengthy waiting list for units in that property.

Ludlow at a glance

Year Incorporated: 1774
Population: 21,002
Area: 28.2 square miles
County: Hampden
Residential Tax Rate: $19.99
Commercial Tax Rate: $19.99
Median Household Income: $53,244
Median Family Income: $67,797
Type of Government: Town Council, Representative Town Meeting
Largest Employers: Hampden County House of Correction; Encompass Rehabilitation Hospital; Massachusetts Air National Guard; Kleeberg Sheet Metal Inc.
*Latest information available

The plan calls for apartments on the upper floors and a mix of retail on the first floor, Daley explained, adding that a coffee shop or sandwich shop would be an ideal use given the growing numbers of people living and working in the complex or within a few blocks of it. That growing population could inspire other types of retain as well, he added.

“We can’t overlook the fact that, once those apartments are done, there will be 160 units right in that vicinity, with an average of two people per unit. That’s a captured audience of more than 300 people to support small businesses; there might be a doctor’s office or lawyer’s offices, for example.”

To make the project happen in these times of inflation and soaring construction costs — an overall 28% increase in the projected price tag for this initiative — Westmass needed to get creative and take a “sizable equity investment” in the project, Daley said. He didn’t say how sizeable, but he did note that this step was needed to keep this project on track.

“It made the project go, and we really want to see the project go — for the town of Ludlow, for the mills, and, selfishly, we want to see that first floor activated so we can generate some revenues from retail and commercial businesses,” he explained.

As for Building 11, the next major target for redevelopment, a mix of housing and commercial retail would be ideal, he said, adding there will be options when it comes to what type of housing might be seen.

“There’s certainly a need for independent living, there’s a need for care living, dementia living, those types of facilities,” he said. “But also for more market-rate housing.”

Overall, the Ludlow Mills property is well-positioned for development, Daley said, adding that everything in its inventory, from commercial and industrial space to raw land, are in demand.

“We have a lot of interest in not only the land, but everything,” he told BusinessWest. “There’s not a lot of inventory out there — for commercial properties or green space. Our property is flat and mostly dry, so it becomes pretty attractive for development.”

As Daley said, Ludlow Mills has been a longer and more difficult journey than anyone could have anticipated when the property was acquired in 2011, but an important turning point has been reached, and a new chapter in this story is set to unfold.

 

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

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 127: August 29, 2022

George Interviews Jeff Daley, president and CEO of Westmass Area Development Corp.

BusinessWest Editor George O’Brien has a lively discussion with Jeff Daley, president and CEO of Westmass Area Development Corp. about the agency’s most ambitious, project to date, redevelopment of the massive Ludlow Mills complex. Daley recounts the latest developments and talks about how the project has turned a critical corner. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

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Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 126: August 22, 2022

George Interviews Ray Berry, founder of White Lion Brewery

BusinessWest Editor George O’Brien has a lively discussion with Ray Berry, founder of White Lion Brewery. The two talk about everything from the state of the craft brewing industry in Massachusetts to Berry’s plans to partner with former UMass and NBA star Marcus Camby  on a new and exciting White Lion in downtown Amherst. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

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Commercial Real Estate Special Coverage

Urban Pioneers

Colin D’Amour says the planned downtown store is unlike anything Big Y has created before

Colin D’Amour says the planned downtown store is unlike anything Big Y has created before and is, in many respects, a pioneering endeavor.

 

Big Y Foods will soon begin the process of transforming the former CVS location in Tower Square into its latest market. The chain has been operating for nearly 80 years now and has expanded its footprint well beyond its roots at that now-famous intersection in Chicopee where the converging roads formed a ‘Y.’ But this venture is something completely different in terms of scale — and just about everything else.

 

In many respects, the new store that Big Y is planning for the space in Tower Square formerly occupied by CVS constitutes pioneering — for the company and the city.

Indeed, what is proposed, a scaled-down version of a Big Y supermarket in an urban setting — the heart of downtown Springfield — hasn’t been tried before, as far as anyone knows. And it certainly hasn’t been tried by Big Y, the chain of supermarkets started by brothers Paul and Gerry D’Amour in 1936.

“To the outside observer, they see us operating supermarkets and say, ‘this is just a smaller format,’” said Colin D’Amour, senior director of Big Y Express and point person on this project. “But it’s really a completely new venture for us, everything from distribution to operations to trucking … we’ve never operated a downtown, urban-format market before, so there are a whole lot of unknowns for us.”

So while there is a great deal of anticipation and excitement about the company’s plans — downtown Springfield has been a food desert for decades now, and the need for a supermarket in that area has long been a recognized need — there is also a great deal of uncertainty about just how this will all play out.

So much so that determining just what constitutes ‘success’ at this new and decidedly different location is a difficult assignment.

“We are flying the plane as we build it in many respects,” D’Amour explained. “We know how to operate a supermarket, and we’re constantly tweaking that model, but when we open a new store, we have a very good idea of what success in that store will look like and what we need to do to achieve it. With this model, we’re trying to be a lot more flexible, even from our design standpoint.

“To the outside observer, they see us operating supermarkets and say, ‘this is just a smaller format.’ But it’s really a completely new venture for us, everything from distribution to operations to trucking … we’ve never operated a downtown, urban-format market before, so there are a whole lot of unknowns for us.”

“We don’t fully know what our lunch business is going to be like in the area; we don’t fully know what our after-work, prime-time, rush-on-the-way-home-from-work business is going to be like,” he went on. “We’re trying to build in some flexibility that’s going to allow us to adapt, once we do open, to what the customers’ needs are.”

Overall, this story is an intriguing one on a number of levels. For starters, there is the obvious need for a grocery store being filled. Meanwhile, the recruitment of Big Y marks another imaginative reuse of space in Tower Square by owners Vid Mitta and Dinesh Patel, who previously landed the YMCA of Greater Springfield and White Lion Brewery, among others, as tenants. And this new development was made possible by federal COVID-relief funds, making this is an example of how those monies have been put to work by the city to improve specific neighborhoods, including downtown (more on that later).

For now, the plan is to have the store open by next spring, said D’Amour, adding that there are some challenges to meeting that timeline, including supply-chain issues that make getting needing materials and equipment, like shelving, somewhat of an adventure.

An architect’s rendering of the planned new  Big Y market in Tower Square.

An architect’s rendering of the planned new
Big Y market in Tower Square.

As for the store itself, it will feature most of the same departments as a typical Big Y World Class Market (there will not be a pharmacy), but, obviously, a smaller volume of items.

As for customers, Big Y believes it will draw from several different constituencies, including those living downtown, those working in both Tower Square and other surrounding office buildings, those coming to Tower Square on other business, such as daycare services at the Big Y, and others.

“We think there’s going to be a good mix,” he noted. “Tower Square is a pretty robust facility, and there are a lot of people who work there who may be living in Springfield or commuting from outside the city who may be looking to grab something after work for dinner or grab something to help fill the fridge, and it saves them a trip to a traditional supermarket. There’s also a good number of residents that live right downtown as well. We think there will be a healthy mix.”

For this issue and its focus on commercial real estate, BusinessWest talked at length with D’Amour about how this concept came together and why the initiative represents pioneering on a number of levels.

 

Location, Location, Location

D’Amour said Big Y has been looking at downtown Springfield with an eye toward possibly opening some type of store there for some time now.

“It’s fair to say that it’s been decades,” he noted, adding quickly that, while the company hasn’t been actively pursuing something all that time, it has long understood that there is both need and opportunity involved with such an undertaking.

“We’ve had a very long, positive relationship with the city of Springfield, being headquartered here, and we’ve got a great relationship with the mayor’s office,” he went on. “So there’s just been a constant dialogue about what opportunities are there.”

“We’ve tried to take little bits of what we like from some different markets out there. But we think downtown Springfield is a bit unique, and we think that we understand the Western Mass. customer and the Springfield customer, and we’re trying to blend our brand with what we’ve seen other folks do in other environments and come up with something we think will work in this setting.”

Matters moved beyond the dialogue stage thanks to a number of puzzle pieces coming together, he went on, noting that the first was the location that became available when CVS vacated its longtime home in Tower Square for a location about a half-mile south on Main Street.

“The new owners of Tower Square came to us with this opportunity — everything just came together at the right time,” said D’Amour, noting that the company not only recognized an opportunity, it was prepared to take full advantage of it. “We were able to pull it together and make it work.”

Prepared, yes, but still moving into what would be uncharted territory for this company — and many supermarket chains, for that matter. Indeed, the location would be in the middle of the city’s downtown, with no on-site parking and certainly no loading dock.

The new market will serve people who work in the office towers

The new market will serve people who work in the office towers, as well as residents who live downtown.

These unknowns, along with uncertainty about just how much traffic this site will generate, made it enough of a risk that the project required an investment from the city, said D’Amour, adding that this investment has come in the form of $1 million in federal COVID CARES Act funding.

“That funding allowed us to answer some of those unknowns,” he said. “It solved some unsolvable challenges around distribution and issues like that, and it allowed us to see a pathway to a financially viable market in this location. I don’t think we would have been able to get there — what with rising construction costs and trying to figure out an entirely new model — without that federal money.”

Elaborating, he said the traditional Big Y model, one seen across this region and now far beyond, into Connecticut, Central Mass., and now Eastern Mass., is the suburban World Class Market, usually in a larger shopping center, with acres of parking; the company just unveiled its latest plans to build a store in Middletown, Conn. The Tower Square store is a much different model, one that, as noted, comes with a large supply of unknowns.

“There’s nothing close to this in terms of the urban setting, and there’s nothing close to this in terms of size,” he said. “This is maybe one-fifth the size of one of our traditional supermarkets. Obviously, all of our stores are unique in size and layout, but this is certainly an outlier.”

Thus, the team at Big Y has looked at models that would be considered similar in other urban markets, including New York and Boston, as well as some smaller cities in upstate New York, he said, adding that the chain is essentially creating its own model with this initiative.

“We’re having supply-chain challenges everywhere, and we’re working through them as best we can, and we think we’re doing a pretty good job with it.”

“We’ve tried to take little bits of what we like from some different markets out there,” he explained. “But we think downtown Springfield is a bit unique, and we think that we understand the Western Mass. customer and the Springfield customer, and we’re trying to blend our brand with what we’ve seen other folks do in other environments and come up with something we think will work in this setting.”

The plan, as noted, is to offer most of what would be found in a traditional Big Y market, he said, adding that patrons can do what he called a “full shop” at the downtown location, with fresh meats, bread, produce, and other items, just not in the variety to be found in the larger-model store.

Work has yet to begin on site, he said, but the plan is to open the store late in the first quarter of next year, and he believes that timetable can be met, despite those aforementioned challenges, including construction lead times and simply getting needed materials and equipment.

“Supply chain continues to be a challenge, both from a construction standpoint as well as from a product standpoint,” D’Amour explained. “But it’s nothing we’re not tackling, like everyone else in this late-pandemic, post-pandemic world, whatever we’re calling it these days. We’re just continuing to try to find innovative ways around it and fill our stores.

“With respect to this Tower Square downtown location, it’s really no different than what we’re tacking in all of our stores,” he went on. “We’re having supply-chain challenges everywhere, and we’re working through them as best we can, and we think we’re doing a pretty good job with it.”

 

Food for Thought

As D’Amour noted, it is difficult to make projections for the planned new market, and equally difficult to get a firm grasp on just what will constitute success.

But in an area that has been devoid of anything like this for as long as anyone can remember, there are great expectations and high hopes that the new store will be an important addition to the mix in Tower Square and the central business district as a whole.

In short, there is a good deal of anticipation about what’s in store for this location — figuratively, but also quite literally.

 

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

Features Special Coverage

Pivot Move

 

Mike Yates, left, and Ray Berry

Mike Yates, left, and Ray Berry agree that expansion into Amherst is a common-sense move for the company.

 

When asked how he would eventually become business partners with Marcus Camby, the former UMass and NBA star, Ray Berry, founder of White Lion Brewery, leaned back in his chair as if to indicate it was a bit of a long story.

It starts with Travis Best, another former NBA player who made his first headlines while playing for Springfield’s Central High School. It was Best who put together several annual Basketball Hall of Fame enshrinement weekend events, including a post-induction gathering. Following the opening of White Lion’s downtown Springfield operation just over a year ago, Best was looking to include the company in the festivities — and did.

Indeed, Best and Berry would collaborate with the city on a block party on Bridge Street during enshrinement weekend — the same weekend, it turned out, that UMass Amherst would be honoring Camby, Julius Erving, and John Calipari with statues in their honor on campus. Best and Berry decided to reach out to Camby to see if he wanted to co-host the event in Springfield, which he did.

“Marcus was all in — he was already in town, and he was excited to be part of what we were doing,” Berry recalled. “We shut down Bridge Street, rolled up the garage doors, and had some entertainment; it was our first grand event at our brick-and-mortar spot. At one point, I think we had 700 people between the brewery and the block-party environment. It was a beautiful evening downtown.”

Fast-forwarding a little, Camby became more than a little impressed with the White Lion operation and Berry’s status as one of the very few minority brewery owners in Massachusetts — so much so that he attached his name to an IPA produced by White Lion. And later — we’re moving very quickly now, but will go back and fill in some detail in a bit — when Berry was presented with an opportunity to expand his footprint and bring the White Lion brand to Amherst with a location in the heart of downtown, Camby agreed to come in as a partner.

The venture will be called White Lion Brewing Amherst, and will be based in a location that has been making headlines in recent months — 104 North Pleasant St., home to the recently opened Drake, a live-event venue that is already fulfilling its vast promise as a destination for music lovers from across Western Mass. and far beyond.

The White Lion taproom will be located just below the Drake in space that was formerly the High Horse restaurant and, before that, Amherst Brewing, where Mike Yates served as head brewer — before working behind the bar at High Horse.

He now has that same title at White Lion, so this new venture amounts to going home for him.

And with that perspective, he believes the White Lion brand is in the right place at the right time, and with the right business partner.

“It will feel good to be back there. It’s a great little town — I love Amherst,” Yates told BusinessWest. “I think this is going to be a big hit here. Since Amherst Brewing left downtown, there’s no brewery in the downtown area. This is essentially a tourist town — every year you have a new crop of students coming in and parents looking for a place to go for lunch or dinner, and a brewery is always a good option.

“I think this is going to be a big hit here. Since Amherst Brewing left downtown, there’s no brewery in the downtown area.”

“Combine that with our partnership with Marcus and our establishment’s reputation here in Springfield as a prominent player in the brewing business, and I think it will be a big win,” he went on. “I think they hit a big home run with the Drake — that’s what Amherst sorely needed — and we will be another big piece of the puzzle.”

For this issue, BusinessWest looks at how this new venture came together, and what it means for Amherst — and White Lion.

 

What’s Brewing?

Berry told BusinessWest that he recently took part in a panel discussion before a convention of craft brewers at the Samuel Adams facility outside Boston.

The subject being addressed by the panel was satellite facilities, and, more specifically, when and under what circumstances they should be considered.

Summing up his remarks, Berry said he told them, “from a business lens, if the situation if right, and you’re not over-leveraging yourself, it could make sense for that brewery’s respective business model.”

That is certainly the case with this new location in Amherst, he said, adding that it makes sense on a number of levels. “Amherst is a great town. It’s a natural fit for White Lion and its progression.”

So much so that the Amherst Business Improvement District and other stakeholders, diligently trying to replace the lost Amherst Brewing operation, initiated talks with Berry back in 2019, by his recollection, about bringing his brand there.

He listened, but back then, he was devoting almost all of his time and energy to opening his brewery and taproom in the former Spaghetti Freddie’s location in Tower Square, a project that would eventually be slowed — as in slowed — by COVID-19 and its profound impact on construction and the larger renovation efforts at Tower Square.

When that location was well on its way, Berry and Amherst officials essentially picked up where they left off.

“They kept in communication — the conversations would come and go,” said Berry, adding that he eventually went to Amherst to look at some spaces there, including the former High Horse/Amherst Brewing location, which was attractive, but far more space than he needed. Consumed with opening his Springfield location, he put the Amherst project, if it could be called that, on pause.

Marcus Camby has already attached his name to an IPA

Marcus Camby has already attached his name to an IPA, and now he will take his involvement with White Lion Brewery to a higher level as a partner in the Amherst venture.

And it stayed there until, by coincidence (again), Camby was back in Amherst for event. While there, he and his business agent were inquiring about the “space across from Antonio’s Pizza” — the Amherst Brewing space.

That conversation started a dialogue between the two about what whether that location was available and what could be done with it, conversations that got more serious over time, prompted more visits to Amherst, and eventually spurred consideration of not the Amherst Brewing site (because it wasn’t exactly available at that time) but one just down the street, owned by the same party.

But then, the space under the Drake did become available, and the parties involved made an important pivot — yes, that’s a basketball term — back to 104 North Pleasant St.

With that backstory now complete, Berry and Yates have their focus on the future, one they believe holds a great deal of promise, because of the community, Amherst, the specific location, and what White Lion can bring to the table.

“From a White Lion lens, this makes total sense, and for a number of reasons,” Berry said. “For starters, the Drake is iconic. What they’re trying to do on that second floor is a game changer for the downtown Amherst community. To be below that music venue has a number of benefits, from a business perspective.”

“To be on the Main Street corridor in downtown Amherst has a number of benefits from a business lens,” he went on, adding that, while Springfield and Amherst are vastly different in terms of size, he sees many similarities in their downtowns and the work done by the two communities’ business improvement districts and efforts to bring more vibrancy to their respective downtowns.

“We see the many benefits that come with being in the heart of downtown Springfield, and we see the benefit of the partnership and the work that our own Business Improvement District does day in and day out, which includes special programming with White Lion,” he went on. “And the leadership at the Amherst BID has a similar fabric relative to their approach with downtown Amherst; they encourage and participate and facilitate and coordinate outdoor programming, special events, and business-improvement initiatives. Based off of what we’ve witnessed and knowing what they’re doing, it made total sense to be right in the heart of downtown Amherst.”

What also made sense, he said, was to meld the White Lion brand with the brand that Camby has developed, especially in the community where he originally made his mark a quarter-century ago.

“Amherst is a great town. It’s a natural fit for White Lion and its progression.”

Berry said preliminary design work is underway, and the Amherst facility should be open for business by the end of December, in time for the winter semester of classes at UMass and other area schools.

The facility will be a taproom, restaurant, outdoor social space, and a small pilot, nano-brew house — the main production will still be in the Springfield location — one that will allow for what Yates called “one-off” experimental ales.

“It will be a smaller scale — probably a three- or five-barrel brew system, which will allow us to spread our creativity wings a little and try some things that we couldn’t afford to do on a large scale like we have here in Springfield,” he explained. “It will be fun; I’m excited. Springfield’s great, and Springfield’s coming along, but it will be great to do a little bit of both.”

 

Draught Pick

Summing up his thoughts on the two communities where White Lion will have a presence, Berry said Springfield and Amherst have “similar bones.”

By that, he meant they’re trying to achieve the same things in their downtowns — specifically the establishment of an eclectic mix of businesses that complement one another and, together, create a destination.

White Lion has become a key piece of this puzzle in Springfield, and Berry is expecting the same in Amherst, especially with his new business partner attached to the project.

Together, they’ll be making a full-court press in a town where Camby is synonymous with success.

 

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

Guide to Senior Planning Special Coverage Special Publications

Preparing for Life After 65

When people think about strategizing for their senior years, they often see it as a downbeat task, one marked by growing incapacity, financial stress, and, well, dying.

That’s not what this guide is about, although it definitely contains plenty of information about what to do before that day comes. But the goal isn’t planning to die; it’s making sure you get all your plans in order — from where you or your loved ones will live to how finances will be distributed — so you don’t have to worry about it. You can, instead, enjoy life.

 

And that planning is an increasingly important task. According to the U.S. Census Bureau, the number of Americans age 65 and older rose from 35 million in 2000 — 12% of the population — to 56.1 million, or 17%. By 2030, the bureau estimates, more than 21% of U.S. residents, about 73.1 million, will have passed their 65th birthdays.

That’s a lot of people. And a lot of planning. And a lot of living left to enjoy.

Achieving your goals — and your desires for your loved ones — requires careful thought, and that’s where our annual Senior Planning Guide comes in. So let’s sort through some of the confusion and get those conversations — and the rest of your life — started.

 

Architecture Special Coverage

Growth by Design

Tighe & Bond President and CEO Robert Belitz

Tighe & Bond President and CEO Robert Belitz

To say Tighe & Bond is a growing company would be an understatement.

From 2006 to 2016, the Westfield-based engineering firm increased its workforce from 170 to 270, but since then, the tally has expanded to 450, due to a combination of geographic expansion across the Northeast, enhancements to specialized services, and organic growth.

“We like to say it’s still manageable growth — robust, but manageable for us,” said Robert Belitz, who was hired by Tighe & Bond as chief financial officer in 2014 and took the reins as president and CEO three years later. “Our strategic planning process, which we go through every year, says it would be nice to grow between 5% and 10%. So you can see we’re on the higher end of that range.”

Among the recent footprint-expanding additions include an office in Portland, Maine, and two strategic acquisitions. One is a landscape-architecture and urban-planning firm in Boston called Halvorson Design (now Halvorson | Tighe & Bond Studio), which is part of the firm’s continuing strategy in Eastern Mass. and its first office presence in the Hub.

“The work they do is a terrific complement to our existing sites and brings more capabilities to our clients; they also did a lot of coastal-resiliency work as well, and that will continue to be in high demand for us.”

“We like to say it’s still manageable growth — robust, but manageable for us.”

The other recent acquisition was joining forces with RT Group, which expanded the firm’s waterfront and coastal-engineering capabilities in Rhode Island.

“Given where our offices are, there is a tremendous amount of coastline where we have opportunities to support our clients,” Belitz said. “There’s an awful lot of funding that’s being directed toward seawall construction, which is part of our coastal practice. The RT Group does a lot of work around port areas.”

River Valley Co-op in Easthampton

River Valley Co-op in Easthampton is one of the first net-zero-energy grocery stores in Massachusetts.
(Photo by Tighe & Bond)

With offices in Massachusetts, New Hampshire, Maine, Rhode Island, and Connecticut, it’s a natural fit for Tighe & Bond to tackle more coastline work, he added. “There have been a number of natural-disaster events that have raised the awareness of the need for coastal resilience.”

Clippership Wharf in East Boston is a good example. The waterfront residential complex was developed by Lendlease with landscape design by Tighe & Bond and Halvorson, and building design by the Architectural Team. The tiered site includes a harbor walk at the lower level, public access and open spaces at mid-level, and residences and a courtyard above. A ‘living shoreline,’ the first in Boston’s urban harbor, recreates the coastal habitat through the introduction of native plantings and wave-dissipating features to accommodate future sea-level rise, creating a natural flood barrier protecting tenants and other inland properties.

“Our challenge is prioritizing how we can capitalize on all these opportunities in the market.”

Tighe & Bond has also significantly expanded its capabilities in the MEP — mechanical, electrical, and plumbing — area, Belitz said. “We’ve added a significant number of resources there. That’s to serve our existing client base, but it’s also in response to the pandemic, when we were asked to do a fair amount of air-quality work.”

Other growth areas have included traffic and roadway projects as well as asset management, he added. Meanwhile, the firm’s traditional niches in water, wastewater, and other types of projects remain strong.

“We’re still really well-diversified in terms of the services that we can provide to our clients,” he went on. “We’ve trademarked a terminology we call the whole-asset approach, which says we can support a client’s needs on whatever their assets are, from the outset of a project all the way to completion, and that’s because we provide such a broad array of services to our clients.”

At the same time, “I think the stimulus money that’s coming from the Infrastructure Investment and Jobs Act aligns really well with the services that we provide as an organization, including our core water and wastewater services and our environmental work related to brownfield remediation. Our challenge is prioritizing how we can capitalize on all these opportunities in the market.”

 

System Expansion

Founded in 1911 to consult on broad-based civil-engineering projects, Tighe & Bond eventually came to specialize in environmental engineering, focusing on water, wastewater, solid-waste, and hazardous-waste issues, and its growing diversity of expertise has been a buffer against economic downturns in any one area.

Currently, 60% to 65% of its projects are public contracts with municipalities and state government agencies throughout New England and New York, and 35% to 40% are private work for a diverse group of industries.

Clippership Wharf in East Boston

Clippership Wharf in East Boston is an example of a project that includes elements of coastal resiliency.
(Photo by Ed Wonsek)

“It’s a great thing to be diversified during an economic slowdown,” Belitz said. “The diversity of the services we provide has always been beneficial for us.”

That’s particularly important during times of unusual economic disruption, like the current environment.

“We’re always trying to keep an eye on the economic conditions,” he told BusinessWest. “We are partnering very closely with our clients on any supply-chain issues that might cause delays in their projects or extensions of their projects. We’ve been trying to keep a very close eye on that and work closely internally to make sure our people understand how best to communicate with a client. That’s what it comes down to; it’s primarily communication around schedule and timing and making sure that all of that is coordinated.”

The firm has expanded its presence in renewable-energy projects over the past 15 years or so. For example, River Valley Co-op in Easthampton is one of the first net-zero-energy grocery stores in Massachusetts. Tighe’s engineers provided energy-modeling services to evaluate various design alternatives, including HVAC systems, building envelope, and lighting systems. In addition, it designed an array of electric-vehicle charging stations in the co-op parking lot.

Tighe & Bond, like all such firms, has faced an increasingly complex regulatory and permitting landscape, one where environmental concerns once considered minor are now paramount. But Belitz considers these issues not hurdles, but opportunities.

For example, “nitrogen and phosphorous removal for wastewater treatment plants has been a pretty big driver of some of our growth over the last few years,” he explained.

In that vein, the firm recently worked with the town of Southington, Conn. to upgrade its water-pollution control facility. Tighe & Bond developed a phased plan for addressing the town’s wastewater infrastructure needs over the next 20 years. Recent improvements included phosphorus removal, odor control, and UV disinfection.

The upgrades helped the town meet new phosphorus discharge limits that protect the Quinnipiac River, and odor-control measures have helped residents in nearby neighborhoods and those using abutting sports fields. The American Council of Engineering Companies of Connecticut honored the project team’s designs with the 2022 Grand Award for Engineering Excellence.

“We are partnering very closely with our clients on any supply-chain issues that might cause delays in their projects or extensions of their projects.”

Meanwhile, Belitz said, “one of the emerging regulatory drivers is what’s called lead service line replacements, which are requirements for communities to do inventories and replacement plans for the lead service lines. We also do a lot of brownfields cleanup, and that’s been a very significant piece of our growth over the past two to three years, and another example of our well-rounded services.”

 

Working on the Pipeline

Asked how Tighe & Bond continues to grow its workforce at a time when companies of all kinds are struggling with finding and retaining talent, Belitz said it’s a multi-layered strategy.

“I’m not sure a day goes by when we don’t talk about our hiring and attraction of talent. We’ve beefed up our talent-acquisition function here at the firm to continue to identify and attract candidates to the firm. And once we get candidates to join us, we’ve always done a really good job of investing in their development, in order to retain our latest employees.”

He said the firm’s “very robust” onboarding and training program consists of not only leadership training, but anything people need to do their jobs: project management, quality management, safety and health principles, and more. “We’ve made a very big investment in that area just because we’ve had to, given our growth. We’ve kind of branded it internally as Tighe & Bond University, where new folks come in and meet with their supervisor and figure out what sorts of training they need to be effective in their jobs, and we think that’s key to a successful onboarding.”

Tighe & Bond has purposefully cultivated a culture of mentorship and teamwork as well, particularly between the older and younger generations of engineers.

“One of the nice things that we hear all the time from people in our organization is they get to work on all different kinds of projects,” Belitz said. “The other thing we’ve always done, but have made further investments in, is the ability to work seamlessly across all of our offices. All our offices are fitted with collaboration tools and the technology that people need to work together, and to complement that, we assign new hires to current employees when they join the firm so they can get that initial mentoring and that on-the-job training that is so important to their success.”

The firm adopted a hybrid work model during the pandemic that has continued to be effective, he added. “We think that allows our people not only to have some of the work-life balance and work-life integration objectives they’ve always had, but it still affords us ample opportunities to collaborate on projects and have that on-the-job mentoring and training. That’s how we’ve approached the pandemic, with a pretty big investment in technology to make sure that happens.

“From the outset of the pandemic, we were very intentional about saying our main goals are to look after the safety and health of our people, to protect the jobs of our people, and also to maintain our employee benefits,” he went on. “There was a lot of uncertainty at the time. We had some sectors that slowed down for a short period of time, but we had others that ramped up, and now I think some of those sectors that have slowed down have come out of the pandemic ready to work with Tighe & Bond on even more projects.”

 

Building a Culture

Belitz said Tighe & Bond’s leadership is proud of the firm’s culture, which includes elements like the Make a Difference program, which affords employees time to give back to their communities through service projects with local nonprofits.

“Even during the pandemic, though we couldn’t do some of those things because of the restrictions, we had a number of our people volunteer in places like food banks and hospitals and places that had the most need during that period of time,” he explained.

Meanwhile, the company’s employee-benefit program has seen additions like a paid-time-off donation program, by which employees can donate hours of unused vacation to co-workers for certain personal needs; and a student-loan repayment benefit through which the company makes a principal payment to an employee’s student loan. “It shows our commitment to importance of education and our commitment to employees,” Belitz said.

Meanwhile, he added, the firm has made further investments in technology, both internally and with tools like drone technology, 3D laser scanning, and enhanced use of GIS. “We think those are things that enhance the client and employee experience.”

The firm has also increased its commitment to diversity, equity, and inclusion through efforts like the Supporting Women at Tighe & Bond Employee Resource Group and a partnership with the National Society for Black Engineers, which includes two scholarships for students in the engineering field; both efforts aim to increase the diversity of the firm’s talent pipeline.

All these efforts create an environment where people want to work, Belitz said.

“One area that’s super important for us is our employee ownership and the fact that, even in a climate today where there’s a lot of consolidation and a lot of influence of equity investment in engineering and architecture firms, we’re remaining committed to our employee ownership model,” he added.

“That, combined with the fact that we have all our offices within the Northeast, is a very good model for us to keep growing, but to grow in a manageable way. Growth creates opportunity for our people, and I think we’ve got a nice growth model in place.”

 

Joseph Bednar can be reached at [email protected]

 

 

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 125: August 15, 2022

George Interviews Springfield Mayor Domenic Sarno

BusinessWest Editor George O’Brien has a lively discussion with Springfield Mayor Domenic Sarno. The two discuss everything from the city’s new parking garage, to COVID-relief efforts, to a number of new developments — in the city’s downtown and its many neighborhoods. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

Also Available On

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 124: August 8, 2022

George Interviews Lisa Ekus, founder and partner with the Ekus Group in Hatfield

On the next installment of BusinessTalk, BusinessWest Editor George O’Brien has a lively discussion with Lisa Ekus, founder and partner with the Ekus Group in Hatfield, which likes to say it’s in the business of “creating culinary celebrities.” The two discuss everything from the massive, and still growing, business of food, to her 8,000-volume library of cookbooks and what it takes to become part of that collection. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

Also Available On

Banking and Financial Services Special Coverage

Pedal to the Mettle

Monson Savings Bank’s birthday celebration

Monson Savings Bank’s birthday celebration

Monson Savings Bank has been commemorating its 150th birthday in many different ways, from a time capsule to assembling and donating $15,000 worth of bicycles to several area charities. Through all these efforts, the bank is celebrating its continuity and its commitment to a community that is now much larger then when it took its first deposit back in 1872.

Dan Moriarty called it a ‘trial run.’

That’s how he referred to his 60-mile bike ride, which he also called the ‘Tour de Branches,’ on July 17, during which he visited all seven Monson Savings Bank (MSB) locations — five branches, the headquarters, and a loan center — on a trek that took him from Monson to East Longmeadow, with stops along the way in Ware, Wilbraham, and Hampden.

Moriarty, the bank’s president and CEO, said this was a tuneup for a ride two and a half times that length, a number that is significant because 150 is also the number of years the bank is celebrating this year, and the ride, still very much in the planning stages, has now become a poignant part of the celebration.

Dan Moriarty’s ‘Tour de Branches’

Dan Moriarty’s ‘Tour de Branches’ helped him prep for a 150-mile ride as part of Monson Savings Bank’s birthday celebration

“My goal is to raise money to give to a local charity … I’m thinking I could ask for per-mile pledges from friends, family, customers, and businesses,” Moriarty told BusinessWest, adding that the charity is still to be determined. “I’m guessing no other bank president belonging to a bank older than 100 years has done this.”

He’s probably on very safe ground with that statement. Not many bank presidents pedal such distances, although he’s certainly comfortable doing so having competed in several Ironman triathlons, where participants cycle 120 miles while also swimming 2.4 miles and running a full 26.2-mile marathon. And, more to his point, there simply aren’t many banks that can boast about being around for 100 years, let alone 150.

And that, more than anything else, is what MSB is celebrating this year, said Mike Rouette, executive vice president and chief operating officer, noting that this longevity, this stability — not only the same bank, but the same name since Ulysses S. Grant was patrolling the White House — is rare in this era of ongoing mergers and acquisitions.

bank employees buried a time capsule

As part of the 150th birthday celebration, bank employees buried a time capsule filled with a number of items reflective of 2022.

It is reflected, he said, in a borrowed slogan that the bank has adopted: ‘Never forget who you are and where you came from; it’s an important part of you that you will find strength and peace from.’

“It’s short, and it’s sweet, and it says a lot about us,” Rouette noted, adding that, while the bank has grown and expanded its presence within the region, it remains loyal to the principles on which it was founded in 1872.

Moriarty agreed.

“I think it takes a strong sense of loyalty to the legacy of the organization to hang on for that long,” he said. “As we know, in this area, some long-lasting institutions decided to go a different route and either merge or combine. It starts with the organization and how it feels the future can be laid out for a bank that’s been around a long time; if they feel they’re not going to make it, they look to a different situation or combination. So far, we’re not committed to looking in a different direction.”

Moving forward, he said the bank “has a lot to talk about” at its upcoming annual meeting and strategic planning sessions in September, from where, when, and how to expand geographically to anticipating where technology is going and how to maximize it to better serve customers.

“We had very big ideas, and I’m happy to say that we made most of them happen — and very successfully.”

“It’s all about delivery systems, customer service, where we’re physically going next, which means market analysis and possible branch expansion,” he explained. “We’re going to do it in a controlled and managed method.”

 

To a Higher Gear

While Moriarty is, indeed, a veteran of Ironman triathlons, it had been a while, seven years by his estimation, since he had taken part in one of those competitions. Thus, he admits to being a little sore after that 60-mile trial run.

“It was a reality check when I came off the bike that day,” he explained. “I said, ‘whoa … that was 60 miles; I have to do that twice plus another 30 miles.’ This will be a good challenge for me; there was about 3,500 feet of climbing for one loop — that’s like going up half of Mount Washington.”

Monson Savings Ba

Monson Savings Bank has retained its original name and home city for 150 years, a rarity in the banking world.

He’s presently training with long-time friend and Ironman coach Kevin Moloney, who took the 60-mile ride with him. He’s also mapping out a course, one that will essentially take him on the 60-mile loop twice, with an additional loop, totaling 30 miles, tacked on.

As he said, it’s a work in progress when it comes to planning the ride, choosing a beneficiary, and filling in other details. And this ride will, as noted, will be a capstone — along with a formal gala in September to be attended by employees, board members, and plus-ones (total guest list of … you guessed it, 150) — to what has been a full year of activities marking the bank’s milestone.

Recapping them, Caitlin O’Connor, vice president and Marketing officer, said there has been a wide variety of events and programs, from the burying of a time capsule to the commissioning of a painting of the bank’s first president, Charles Merrick; from a traveling historical display featuring antique currency to monthly $150 cash prizes; from the placing of a marker where the original bank building stood at the corner of Main and State streets in Monson to several build-a-bike initiatives, whereby bank employees have assembled and donated $15,000 worth of bicycles to several nonprofits in the area, including I Found Light Against All Odds, Educare Springfield, and the South End Community Center.

“We had a ‘Cheers to 150 Years’ event starting on March 19 to really kick things off; that’s was an employee event and the starting point,” O’Connor told BusinessWest. “And from then on, it just grew and took on a life of its own. We had very big ideas, and I’m happy to say that we made most of them happen — and very successfully.”

Collectively, these events and programs have punctuated the bank’s place in the community — literally, as with the marker placed at the original bank location, but also figuratively, as a community bank that is very much involved in the cities and towns where it has locations, and the region as a whole, Rouette noted, adding that the 150th anniversary has been a great vehicle for making introductions, forging new relationships, and reinforcing existing ones.

“What a great way to walk into a nonprofit that you’re hoping to bring into the bank or a commercial or residential customer,” he said of the celebration and everything that it conveys about the bank, its history, its stability, and a future that will look very much like the present and the past.

“It’s an opportunity to give them your story — who you are, what you’re about, and your overall legacy,” he went on. “People want to do business with people that have been around, that are part of the community — not just here today and gone tomorrow, but institutions that are truly the cornerstone, the bedrock of the area.”

 

The Ride Stuff

That word ‘area’ has taken on new meaning for MSB since its last major anniversary — its 100th, in 1972 — and especially since 1998.

It was during that year that the bank opened its first location outside of Monson, a branch in Hampden. Five years later, a third branch was opened in Wilbraham, and new locations were added in Ware in 2103 and East Longmeadow in 2020. During that same memorable year, MSB’s Loan and Operations Center moved to a state-of-the-art facility in Wilbraham.

‘Build a Bike,’ where employees assemble bikes and donate them to area charities

The 150th celebration has featured a number of programs and events, including ‘Build a Bike,’ where employees assemble bikes and donate them to area charities, in this case, I Found Light Against All Odds.

With these moves, the bank is now serving a much broader area and becoming more involved in the region’s unofficial capital, Springfield, and serving a broader demographic mix of commercial and residential customers, said Dina Merwin, senior vice president and chief risk and senior compliance officer for the bank.

“We’ve well beyond the towns in which we have branches, and so we recognize that we want to reach all potential customers in our market,” she explained. “We recognize also our desire to include financial inclusion in reaching all potential customers in our market, whether that cuts across lines of income levels, race, ethnicity, and any other basis.

“Many of our recent events were focused in the Springfield area,” she went on, “while we continue to support and celebrate all the communities in which we are committed. We also recognize that there have been some demographic shifts in our market area in age and different types of population, so it’s important for us to recognize that and make sure we’re inclusive in all our efforts.”

While the area being served by the bank has changed, the name over the growing number of doors hasn’t, said Moriarty, noting that his institution, unlike many others, has chosen to keep the name of the community where it began as part of the brand, as well as that word ‘Savings.’

“I think the recession will be short and challenging, but I think Monson Savings and other banks are positioned well to weather, manage, and help customers through this period.”

“We’re going against the grain on that in some respects,” he noted. “Mike and I met with the board of directors during a strategic planning session, and we feel that the reputation that the bank has built the past 150 years does mean something, and we believe it’s recognizable in the community. We want to leverage that from a standpoint of legacy — Monson itself, where it all began — and then ‘Savings’ connoting security and trust, even though we feel we are a commercial player in the market.”

Indeed, while celebrating its 150th anniversary in all those ways mentioned above, MSB has also been carrying on with business, said Moriarty, noting that it has been a solid year in many respects, despite a sagging economy, with continued growth in commercial lending and, overall, a $30 million increase in total assets, bringing the bank near the $650 million mark.

“We’re working to strengthen existing relationships while also fostering new ones across the board, from individuals to businesses,” he said. “We’re trying to help them navigate where this challenging environment is going.”

On the commercial-lending side of the ledger, an already competitive landscape has become even more so as rates start to edge up, said Rouette, adding that many businesses are being more cautious amid general uncertainty about where the economy is headed and, overall, a decline in confidence.

“You’re seeing a bit of a slowdown, especially as people hear of the inflationary environment we’re in,” he went on. “People are pushing back potential projects that they have; maybe they were going to start in the third quarter or fourth quarter of this year, and now they’re saying, ‘let’s pump the brakes a little bit and possibly look at next year and see where we land from a rate standpoint and with the economic environment.’

“We had a great first and second quarter,” he went on. “But when you’re out talking to customers, you can hear the apprehension and cautious tone of voice that business owners are using right now.”

Moriarty concurred, and noted that a recession is now more likely than not, in his opinion, and this will add to the many challenges business owners and managers are currently facing.

“I think the recession will be short and challenging,” he said, “but I think Monson Savings and other banks are positioned well to weather, manage, and help customers through this period. And once the Fed gets control of inflation and the employment market evolves a little bit, we’ll see some improvement.”

Looking ahead, and toward creation of a new strategic three-year plan for the bank, Moriarty said a number of topics will be considered, including the need to be more “customer-centric versus product-centric,” as he put it.

“That means that we have to make sure we’re creating frictionless opportunities and delivery systems that make it easy for customers to manage their banking,” he explained. “That includes digital banking; we know we have cutting-edge products now, but we know things are going to change drastically in the next three to five years, so we have to make sure we’re positioned to give those offerings to our customers.

“Artificial intelligence will come more into play in the next three to five years,” he went on. “The usefulness or the quickness with which we can do data analysis of what our customers have and what they need will be important. Customers want to have things at their fingertips; they want to maximize and analyze their financial situation and be able to look forward and make good decisions.”

As for possible geographic expansion, Moriarty said there are many possibilities, and he’s not ready to talk about any of them.

He did say that the consensus among experts in the industry is that the recent pattern of consolidation within the sector will continue, leaving opportunities for smaller, community banks like Monson Savings.

“We feel that we benefit from other mergers and acquisitions because we’ve been around for so long, and we know that where there’s shakeup, there’s also opportunity,” he said. “We’re going to keep an open mind to that.”

 

Going the Last Mile

Returning to the subject of his planned bike ride, Moriarty joked that now that he’s started to talk about it, he’s pretty much committed to doing it.

He’s training two or three times a week with Moloney and looking at a number of options for which charity or charities (probably the latter) he will be fundraising for.

It’s been a while since he’s taken part in an Ironman competition or even a marathon — he’s run in several of those as well, including Boston a number of times. But he said it’s like … well, riding a bike. Not really, but close.

In any case, like the institution he now leads, he’s proven that he’s in it for the long haul — as in the very long haul: 150 miles for him, 150 years for the bank.

They’ve both put the pedal to the mettle.

 

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

Education Special Coverage

Grade Expectations

Michelle Schutt says that, while it may seem like Greenfield, Mass. is a long way from Twin Falls, Idaho (3,160 miles, to be exact), it’s really not.

At least when it comes to the issues and challenges facing the institutions that now comprise the top lines on her résumé — College of Southern Idaho (CSI), where she was vice president of Community and Learner Services, and Greenfield Community College (GCC), where she started just a few weeks ago as the school’s 11th president — and their overall missions.

“There are many similarities between these communities,” she explained. “There’s a high number of first-generation college students, people who are hungry for educational opportunities, definite need within the community … they are very much alike, which lends itself to the applicability of what I’ve done in the past and what I hope to do the future. I’m a big believer that education opens doors and changes family trees, and that we can all be educated.”

Schutt comes to GCC with a résumé that includes considerable work in the broad realms of student services and diversity, equity, and inclusion, and she said this will be one of the main focal points at GCC.

“If we’re going to recruit and retain students,” she told BusinessWest, “we’ve got to take into account their entire experience because often, it’s not the academic rigor or even the finances that keep them from succeeding; it’s the social-capital issues of how they’re maneuvering through life.

“COVID definitely exasperated the social needs of our students,” she went on. “But they were always there.”

Regarding diversity, she said this issue is often looked at through the lens of ethnic diversity — and that is certainly part of it. But there are many aspects to this matter, some more visible than others, and they must all be considered at institutions like GCC.

“If we’re going to recruit and retain students, we’ve got to take into account their entire experience because often, it’s not the academic rigor or even the finances that keep them from succeeding; it’s the social-capital issues of how they’re maneuvering through life.”

“It’s a little cliché, but this is a bit of an iceberg topic,” she explained. “There are the physical things that we notice about each other, and then there’s the 90% of the iceberg that’s below the water line; you really need to get to know someone before you can fully understand how they, too, are diverse.”

Schutt told BusinessWest that, after more than 20 years of work in higher-education administration — work that had taken her from St. Cloud, Minn. to Hanover, Ind., Laramie, Wyo., and then Idaho, she considered herself ready to be a college president, and began looking to apply for such positions.

This recognition didn’t come overnight, she said, and it was actually several years after the then-president of CSI asked her to consider that position before she considered herself truly qualified and ready to take the helm at a campus.

She said she looked at a few opportunities that presented themselves — there have been a number of retirements and shifts in leadership in higher education (as in other sectors) over the past few years — but soon focused her attention on GCC.

Schutt said the school — which this year celebrates its 60th anniversary — and its mission, the area it serves, the team in place, and the institution’s prospects for future growth and evolution all appealed to her.

Her immediate goals are to become acquainted with the school, its staff and faculty, as well as Greenfield and the broader area served by the college.

Looking longer-term, she said she wants to properly position GCC for a future where enrollment will be even more of a challenge than it is today, and where students’ ‘needs,’ a broad term to be sure, will only grow.

“Nationally, we’re heading for an enrollment cliff,” she said, adding that 2025 is the year when already-declining numbers are expected to reach a new and more ominous level. “We have to ensure that we’re offering what people need and what people are looking for; we have to take a look at what we’re doing in workforce and in community education and what we’re doing with credit-based courses, and align those with good outcomes.”

 

Course of Action

As noted, Schutt brings to GCC a résumé dominated by work in student services, with a focus on diversity and inclusion.

At the College of Southern Idaho, where she started in 2015, she held several positions, starting with associate vice president of Student Services, then vice president of that same department, and, starting just last year, vice president of Community and Learner Services.

“If they’re stressed about some sort of insecurity or some issue related to childcare or transportation, it’s really difficult to focus on calculus. That’s where student affairs and student services come in — to educate the entire student.”

She lists a number of accomplishments, including a sharp rise in enrollment for the 2020-21 school year; steady increases in Hispanic student enrollment, from 17.8% in 2015-16 to 26.3% in 2109-20; and improvement in the graduation rate from 20% in 2016 to 34% in 2020.

But she believes many of her most significant gains came in the realm of diversity, equity, and inclusion.

Indeed, Schutt noted that, in helping CSI become a Hispanic Serving Institution (HIS), she recruited and hired bilingual staff members for each area of Student Services, spearheaded CSI’s first HIS Week, lobbied the board of trustees for gender-neutral bathrooms on campus, developed and offered a program called Parent College in both English and Spanish, established the Gay-Straight Alliance student group, and advocated for and hired the school’s first full-time veterans’ coordinator.

Prior to CSI, she served as director of Student Affairs at Penn State University’s campus in Scranton. As a member of the school’s senior administrative leadership team, she was engaged in strategic planning, policy development, and problem solving.

She said that she gravitated toward work in student services (she also teaches) because of its importance to the success of not only students but the institution in question. Summing it up, she said such work falls into the realm of student success and making sure they can get on — and stay on — a path to achieving their goals, whatever they may be.

“It’s about ensuring that their housing and food and social integration and mental health and physical health are all taken into account as it relates to their journey,” she explained, “because all of those things play a factor in their academic success.

“If they’re stressed about some sort of insecurity or some issue related to childcare or transportation, it’s really difficult to focus on calculus,” she went on. “That’s where student affairs and student services come in — to educate the entire student.”

When asked what she liked about this aspect of higher education, she said there are many rewards that come with it, especially those derived from helping students clear some of the many hurdles to success.

“I love that we’re able to help each and every student achieve their goals, and that we are looking at them as individuals, as humans, and not another person in a seat, and that we’re educating the whole person.”

“I love that we’re able to help each and every student achieve their goals, and that we are looking at them as individuals, as humans, and not another person in a seat, and that we’re educating the whole person.”

Looking to take her career in higher education to a higher plane, Schutt looked at several job opportunities, but eventually focused on the presidency at GCC because of what she considered a very solid match.

Compatibility was revealed the initial interview, conducted via Zoom, and then reinforced at a day-long, in-person session, during which she met and took questions from several constituencies, including faculty, staff, students, and other stakeholders.

“There is a shared set of values that focuses on students and recognizes the importance of community integration for a community college,” she said when asked what she came away with from that day’s experiences.

“When I came to campus, it was validating to meet people who truly care about students,” she went on. “And that was conveyed in every group that I met with; that was conveyed by the students — that they felt they were cared for. And those things are really important to me; you can’t make that up. And the end of the day, if you don’t care about students, the students know that.”

 

School of Thought

As noted, Schutt will bring a deep focus on the importance of equity, diversity, and inclusion to her new role, noting that, while she has always had an appreciation for these matters, it reached a new and much higher level through her experiences teaching English and social justice.

“I was teaching in the evening, when we had the greatest diversity of students,” she explained. “And to understand the general college-student experience was really eye-opening to me and made me a better administrator.

“That’s because, as a vice president, you see the highly successful students, or the students who were in great despair, who may not persist no matter how we helped them,” she went on. “To see the 40-year-old mom coming back to school, the 16-year-old dual-credit student, the student with limited English acquisition, the working dad … all those people coming together in one class really opened my eyes to the immense diversity in who we educate in community college.”

At CSI, Schutt said, it became a priority for the school to become a Hispanic Serving Institution, and the many steps taken to achieve that status became learning experiences on many levels. And, ultimately, they helped enable the school to better serve all its students.

“We worked really hard to make sure we were understanding the Hispanic student experience and that we were ensuring equitable outcomes and inclusionary practices,” she explained. “There were always critics who would say, ‘you’re focused on Hispanic students only.’ Well … no, we were making all our practices and policies better for all of our students.

“We worked very hard to get designation, but along the way, we also worked on broadening our understanding and awareness of all students,” she went on. “I lobbied in front of the board of trustees for more gender-neutral bathrooms and started a food bank and made sure we had a full-time veterans’ coordinator. Those are things that improve opportunities for all our students.

“When we’re taking about equity, we’re making sure that everyone has the same opportunity,” she continued. “But how they get there may look very different, and the inclusion component of it is celebrating those differences, and there’s a lot of work to be done — in the field, in society — and Greenfield isn’t any different.”

Elaborating, she said it’s one of her goals to soon have an administrator focused specifically on diversity, equity, and inclusion, a broad realm that, as she said, goes beyond ethnic diversity and to those matters below the tip of the iceberg.

“DEI here might look at educational attainment, it might look at poverty and wealth inequities, it may include LGBTQ identities — there’s diversity everywhere,” she said. “We can’t say, ‘we all look the same here in Greenfield or in the Pioneer Valley, so there is no diversity.’ Diversity is everywhere; it just may not be as obvious.”

 

Class Act

Looking ahead, Schutt said she’s looking forward to filling her calendar with meetings with local officials and members of the business community as she works to gain a broader understanding of the community served by the college.

She’s also looking forward to the fall, and a projected increase in enrollment as the school looks to fully recover from the pandemic and its many side effects, as well as the coming year, an important milestone for GCC as it celebrates 60 years of growth and change.

Mostly, though, she’s looking forward to continuing what has become, in many respects, her life’s work in student services and diversity, equity, and inclusion.

As she said, if schools like GCC are to successfully recruit and retain students, they must take into account their entire experience. And this will be the focus of her efforts.

 

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

Innovation and Startups Special Coverage

Going with the Flow

customer site in Detroit

From left, Aclarity’s Chief Science Officer Orren Schneider, CEO Julie Bliss Mullen, Application Engineer Liz Christ, and Senior Operations Engineer Chris Hull at a customer site in Detroit.

They’re called per- and polyfluoroalkyl substances. But they’re known by a much simpler, and more troubling, moniker.

“They’re nicknamed the ‘forever chemicals’ because they don’t break down in nature,” said Orren Schneider, chief science officer at the Hadley-based startup known as Aclarity. “The bonds in them are so strong that essentially nothing natural breaks them down. Maybe if you hit them with lightning, they’ll break down.”

Lightning isn’t exactly a feasible solution. But Aclarity — which has made waves (no pun intended) in the water industry with a its novel electrochemical approach to combating pollutants — offers a better one.

“We can actually destroy these compounds and break them into their component parts,” Schneider told BusinessWest. “There’s a big focus at the state level — and also starting at the federal level — on how to get these compounds out of the environment.

“The reason they’re there is they’re incredibly useful in a lot of different consumer and industrial products,” he explained. “Scotchgard, for instance. They’re also used in firefighting foam to help put out fires. They’re used on pizza boxes and Chinese food containers. So they’re very useful, and those same properties that make them useful make them difficult to break down. Right now, our main focus is, how do we break these down?”

Several years ago, BusinessWest told the early part of the Aclarity story, of how CEO Julie Bliss Mullen, as part of her PhD research, discovered an electrochemical technology that could treat water by passing a small electric current through it to destroy contaminants.

“They’re nicknamed the ‘forever chemicals’ because they don’t break down in nature. The bonds in them are so strong that essentially nothing natural breaks them down.”

 

It immediately stood out from other solutions on the market due to both the lack of resulting waste products and its versatility. So in 2017, she co-founded Aclarity, which won the top award at the UMass Innovation Challenge, claiming $26,000 in seed money to help jump-start the company.

Julie Bliss Mullen co-founded Aclarity to sustainably and cost-effectively clean the world’s most challenging waters.

Julie Bliss Mullen co-founded Aclarity to sustainably and cost-effectively clean the world’s most challenging waters.

Essentially, she explains, electricity is applied to an anode and cathode, water flows through the reactor, and contaminants are destroyed by strong oxidants such as free electrons (which break the PFAS bonds), hydroxyl radicals, ozone, and chlorine that are generated inside of the Aclarity reactor. The result is harmless byproducts — essentially water that is free of PFAS and other harmful contaminants.

“Think about a battery,” Schneider said. “You have electrodes in there, and it takes chemical energy and turns it into electrical energy. We do the opposite. We put electrical current into the electrodes, and chemistry occurs. What we’re trying to do is break down a lot of different chemicals that are found in water. And most of the ones we’re focused on right now are PFAS.”

Aclarity isn’t the only company trying to develop a workable and scalable solution for this type of water pollution, he added. “The first company that can commercialize a product that can destroy these compounds is going to be a big winner. And we think we are in the lead there. We know the technology works, and now we’re just figuring out how to make a product that we can sell to do it.”

 

Water, Water Everywhere

Schneider said the original product was just a small reactor that could handle a couple of gallons a minute, which proved out the technology.

“We used that with potential customers to run samples, run water through it, to show them what we can do,” he said, adding that Aclarity has recently built the next stage, scaling up from a single electrode to 10 electrodes in a reactor, and that is being used to further show potential customers that the system works.

“We’re working right now with landfills; we’re going to be starting a project in Warren at the end of August with one of these pilot units,” he noted. “Landfill leachate looks like Guinness beer when it comes out — dirty, dark brown. We turn it into something that looks a little more like Coors Light. And we destroy a lot of the stuff that’s in there, organic compounds, things like ammonia and PFAS. Landfill leachate is an ideal application for us because it’s really high concentration and relatively low volumes. That really favors our economics.”

Aclarity is also starting a pilot system in North Carolina at a water-treatment plant, working with an engineering firm there. “The levels of PFAS found in drinking water are generally pretty low, and the existing technologies work well to remove them,” Schneider explained, but not destroy them. So after small volumes of PFAS are separated from the water using membranes and a technology called foam fractionation, Aclarity will be on site trying to destroy those compounds.

“The first company that can commercialize a product that can destroy these compounds is going to be a big winner. And we think we are in the lead there.”

“You probably won’t see us bolted onto the end of a water treatment plant,” Schneider said. “In New York City, their small system treats 290 million gallons a day. Their large system, over a billion gallons. We just can’t treat that much. But this particular plant treats about 20 million gallons of water a day, and when you concentrate it all the way through foam fractionation, you might be down to 20,000 gallons, and at that level, that’s something we can treat. So it’s a combination of concentration technologies followed by destructive technologies.”

Meanwhile, in Northern Italy, Aclarity is working with a textile plant, treating PFAS at the factory rather than letting it get out to the enviroment and having to worry about treating it there, Schneider explained.

“One other area we’re looking at is Department of Defense bases and firefighting academies. A lot of these compounds are found in firefighting foam. They’ll spray it down, and it keeps oxygen away and stands up to high heat, but then you have this lagoon of water that’s highly contaminated. So we’re discussing building a mobile treatment system where we can come in, treat the lagoon for whatever amount of time is needed, then move on to the next site.”

Orren Schneider (left) brought decades of experience

Intrigued by the company’s promise, Orren Schneider (left) brought decades of experience in the water industry to Aclarity.

Schneider said Aclarity was looking for someone like him who knows the water industry — he’s been working in it for 35 years — and understands these technologies. And he was intrigued by the potential of Bliss Mullen’s startup.

“There are other emerging destructive technologies out there, but, putting on my scientific hat, my engineer’s hat, I have doubts about some of them, how well they’ll scale up or how much energy they’ll use or the materials that are required. I follow trends of new technologies that come out, and I think electrochemical is the next one that’s really going to make a change and emerge from the lab into something that becomes commercially viable.

“That’s one of the reasons why I joined Aclarity. None of our existing technologies really deal with PFAS well,” he went on. “We can get it out of the water, but we just transfer it to something else, whether it’s a more concentrated water stream or granular activated carbon or ion exchange, but then, what do we do with it? It’s still there. Electrochemistry has promise; we’re showing that we can actually destroy these compounds and render them harmless.”

 

Listen Up

That result, on a broad scale, would be life-changing for many, Schneider said. And it starts with an increasingly fine ability to detect pollution in water.

“I use this line a lot: one of the best things I learned in high school was that the number-one cause of pollution is analytical equipment. What that means is, if we can’t measure something, we don’t know it’s there. Our measurement technologies are equivalent to a blade of grass in Central Park. It’s that fine; we can find so many things, and we’re finding adverse health outcomes from these compounds.

“The goal is not just removing them, but being able to destroy them to very low levels,” he went on. “We can destroy things down to the limits of detection that we have now, and there’s no scientific reason to think that we can’t go even lower. It’s just a matter of how much money it’s going to cost and how much electricity it’s going to use. But the science is there.”

He’s excited about the flexibility and adaptability of Aclarity’s process.

“While we are focused on PFAS now, there’s a whole market out there that we can potentially deal with. Also, in things like landfills, because we can treat multiple contaminants at the same time, that just makes us more cost-effective. So rather than have technology A for this compound, technology B for that, we can treat both of those at the same time. So, hopefully, we can be not just a solution, but a cost-effective and the go-to solution.”

After all, Schneider said, until PFAS are out of the manufacturing stream and the environment — and that day seems a ways off, to say the least — there’s going to be a need for technologies like Aclarity. “But there’s always going to be something else. The beauty our technology is that it works for so many different things.”

The key to advancing ideas like this and making them marketable is cooperation between government and the private sector, he added.

“We’re a small company. We want to be the industry leader, but it’s going to take a lot of different people, different technologies, different ideas to figure our way out of this problem. We need government support to help drive this; if there aren’t regulations, people aren’t going to pay to treat things they don’t have to.”

His advice to leaders everywhere?

“Listen to the public. This is one of the few environmental issues where it’s not just caught up in the science; the public is aware and want things done. So it’s going to take cooperation between the public, private industry, and government, all coming together to help solve this big issue.

“We’re not a solution looking for a problem,” Schneider added. “We want to be part of solving that problem. I’m a big believer in the public-health part of this as well as the environmental part. I wouldn’t be doing it otherwise.” u

 

Joseph Bednar can be reached at

[email protected]

 

Community Spotlight Special Coverage

Community Spotlight

By Mark Morris

Mayor Nicole LaChapelle

Mayor Nicole LaChapelle’s priorities have included housing, business development, infrastructure, schools, and the emerging cannabis sector.

 

 

When people ask Easthampton Mayor Nicole LaChapelle to list her priorities for the city, her answer is always, “housing, housing, housing, and housing.”

And there’s a reason for that — actually, several of them, which LaChapelle summed up in this poignant way: “Easthampton is the cool-kid city.”

By that, she meant that this former mill town has become a destination for businesses, but also a very desirable place to live because of its arts, culture, attractive neighborhoods, and recreational spaces. That mix has created a need for housing — a major need.

“If we don’t put a huge focus on housing, and if we don’t get housing units done by 2025, our city will be in trouble,” said the mayor, adding that her administration has, indeed, focused significantly on this issue, and it has yielded results, such as the One Ferry project, an initiative that is creating not only new housing but retail and office space as well.

Several old mill buildings on Ferry Street are undergoing a massive effort converting the former factories there to condominiums and rental housing, as well as some retail and office space.

So far, the renovation work has focused on three buildings: 3 Ferry St. was finished in 2020, and it is now fully occupied with residents and several businesses. Meanwhile, 5 Ferry St. consists mainly of apartments with condominiums on the top floor; it is expected to open later this year.

“All but two condos are sold at 5 Ferry St., and the developer reported a 65% lease rate,” LaChapelle said, adding that “70% occupancy is usually the goal for a new development, so they are right there.”

Work has also begun on Building 7, scheduled to open in 2024. When complete, the three buildings will add nearly 150 units of housing to Easthampton.

“The Ferry Street project is what we hoped it would be, a spark for community development and neighborhood pride,” the mayor said. “Watching the progress at the site has been a real confidence booster for the city.”

While housing is indeed a priority, it is just one of many priorities in a community that has seen a great deal of change, evolution, and growth over the past quarter-century, and is poised for more of all the above.

“COVID was a huge challenge for businesses. This site allows them to respond to those challenges and to build more resiliency for changes in the future.”

Other focal points for LaChapelle and her administration include new business development, business-sector recovery from COVID, infrastructure, schools, growth of the city’s emerging cannabis sector, and more, and the mayor reports progress on all these fronts, especially those involving assistance and mentoring to small businesses.

Many are included in a broad initiative called Blueprint Easthampton. Designed to promote entrepreneurial innovation, the initiative also emphasizes partnerships with key constituents in the community such as nonprofit organizations and educational institutions.

Keith Woodruff

Keith Woodruff was one of the first local business owners to open an online store on the Shop Where I Live site.

LaChapelle said Blueprint Easthampton is like an octopus in the way it keeps reaching out to different areas. One notable partnership is with the Coalition for Community Empowerment, a collaboration with the Massachusetts LGBT Chamber of Commerce, the Black Economic Council of Massachusetts, and Lawyers for Civil Rights. They have embarked on a statewide program to provide small-business technical assistance and open paths to entrepreneurs from at-risk populations. LaChapelle said at least a dozen businesses in Easthampton have benefited in some way from this effort.

“At a deeper level, three businesses have received grants, and two others have signed up for extensive business coaching,” LaChapelle said, explaining that startup businesses often have to realign their ideas to serve the market that exists.

“In one case, a baker had a business plan based on a delivery and storefront model,” she noted. “After coaching from the coalition, she realized her idea would work better without the storefront.”

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at Easthampton, the many forms of progress being seen there, and what’s next for the ‘cool-kid city.’

 

‘Shop Where I Live’

In January, LaChapelle began her third term as mayor. Unlike her previous terms, which each lasted two years, the mayor’s term now runs four years. It’s a change that makes long-term planning easier on many fronts.

“With a four-year term, the mayor isn’t distracted with campaigning after only 18 months,” she said. “The longer term also makes it easier to manage the timing of grant cycles.”

The longer term is beneficial when coping with pressing issues, said LaChapelle, adding, again, that there are many of them, especially in a community that has become home to small businesses across many sectors, from technology to the arts to hospitality, that were negatively impacted by the pandemic.

In partnership with the Greater Easthampton Chamber of Commerce, the city secured a grant from the state’s Rapid Recovery Plan, which was set up to address the economic impact COVID-19 had on cities and towns. The grant resulted in an online retail effort run by the chamber known as easthampton.shopwhereilive.com.

Moe Belliveau, executive director of the chamber, explained that the Shop Where I Live program is an Amazon-type experience involving local businesses.

“Many businesses don’t have the resources or the time to set up online shopping, so this site makes that possible,” she said.

Consumers can choose offerings from several local businesses, put them all into an online shopping cart, and make one payment. Because the site is supported by a state grant, it’s open to all Easthampton businesses whether they belong to the chamber or not.

Moe Belliveau

Moe Belliveau said Shop Where I Live will help businesses respond to economic challenges both now and in the future.

“For members, this will be an ongoing benefit,” Belliveau said. “For non-members, the first year is free, then they can choose to join the chamber or pay a service fee to remain on the site.”

Each merchant can offer up to 100 products in their online store, said Belliveau, adding that Shop Where I Live is not restricted to retail operations. Services such as health clubs, web developers, and insurance agents can be found there, too.

“COVID was a huge challenge for businesses,” Belliveau said. “This site allows them to respond to those challenges and to build more resiliency for changes in the future.”

KW Home, an interior-design firm and retail showroom, was one of the first businesses to open an online store on Shop Where I Live. Owner Keith Woodruff expects the site to benefit his business going forward.

“For the last two years I’ve had to operate by appointment only with limited hours,” he explained. “Many consumers are still concerned about shopping in person, so having the online store will be a big help.”

KW Home is an example of a business that provides a service and sells products. Most of Woodruff’s work is driven by working with clients to present design plans specific to their homes and then providing the furniture, lighting fixtures, and other items to execute the plan.

He said 80% of what he sells are special orders for clients. Most items run the gamut from a specific type of fabric for a chair or couch to custom window treatments. He also carries items in limited fabric offerings that are more easily available and work well with the online store.

“In order to make the launch date of June 30, I put only a few items on the site,” Woodruff said. “As this rolls out, I plan to add smaller accessories on there to give people more choices.”

 

Work in Progress

One of the many disruptions COVID caused was the nature of where people work. Even now, some people have returned to their worksites, some continue to work from home, while others have left their jobs to pursue the business idea they’d always wanted to try.

Amid these changing dynamics, Belliveau conducted research on how best to use the space at the chamber office on Union Street. The result is a new co-work space called Work Hub on Union.

“We’re looking to address folks who still work from home but need a temporary space, as well as entrepreneurs who are just starting out but are not yet ready for a permanent space,” said Belliveau, adding that the chamber will remain on site, so those in Work Hub can benefit from its support.

“We are designing this so the furniture can be moved around to create educational space,” she explained. “We’ll be able to run things like development programs and entrepreneurial support programs. In short, it’s a much more productive use of the space.”

While inclusivity is a big part of Blueprint Easthampton, so is accessibility. Working with two land trusts, the city recently bought 22 acres of land near Mount Tom that connect to state-owned property. The purchase was intended to save the land from development. Instead, that area will soon have an ADA-accessible trailhead that goes up to the summit of the mountain.

“I ran on improving accessibility for everyone, so this project makes me very proud,” LaChapelle said.

Riverside Industries was a partner in the trail project. Located in the center of Easthampton, Riverside’s mission is “empowering people of all abilities to help them achieve their highest potential and live their best lives.” It is best-known for placing people with intellectual and developmental disabilities into employment throughout Hampshire, Hampden, and Franklin counties.

Lynn Ostrowski Ireland, president and CEO of Riverside, said anyone can use the new trail because it can accommodate manual or electric wheelchairs, and the ascent along the trail is no greater than the inclines in Riverside’s Cottage Street headquarters.

As someone who has previewed the trail, Ostrowski Ireland reported the summit view is “beyond spectacular.”

“There are plenty of places along the trail to pull off and take a break or just to stop and enjoy the view along the way,” she said. “We will definitely bring clients there and let their families know about it, too. It’s really something everyone can enjoy.”

Natural surroundings like Mount Tom are part of the attraction for new students at Williston Northampton School. The private college-prep school approaches the fall with a full enrollment. Ann Hallock, director of communications at Williston, said 495 students will be on campus, hailing from all over the U.S. as well as 30 different countries.

“We consider our location in Easthampton to be a unique selling point of the school,” Hallock said. “Students love the location, especially being able to walk into town for restaurants or visit shops or go for hikes on Mount Tom. Parents like all that too when they come to visit their kids.”

Williston students also get involved with several local organizations, such as the Easthampton Community Center and the Emily Williston Library.

When classes begin in the fall, the new Mountain View School, housing students in grades K-8, will be fully open to all its students. As the finishing touches were added this year, middle-school students moved in during the spring. Now that construction is complete, the elementary students will begin their classes at Mountain View in the fall.

With the new school project done, LaChapelle has shifted her attention to finding a reuse for the Maple Street, Center, and Pepin schools, the three buildings replaced by Mountain View. Later this summer, the mayor will issue a request for proposals that she hopes will attract the attention of developers who are planning their next construction season.

Naturally, the mayor would like to see the buildings turn into housing.

“Depending on how they are developed, the three buildings could add as many as 150 rental housing units,” she said. “Realistically, we’re hoping to see 70 to 80 units get added to the housing rolls, with 20% to 25% of those designated affordable.”

The search for a developer comes after 18 months of residents working with a consultant to determine the needs and wishes of each neighborhood where the schools are located.

“It’s exciting because every step of the way, we have been talking with residents about the buildings,” the mayor said. “The residents have done an amazing job, and after all their input, it’s safe to say the people have spoken.”

When the people spoke and voted to allow cannabis sales in Easthampton, no one knew what the impact might be on the city. In the beginning, there were fears of higher crime, underage use of cannabis, and fire-suppression issues in the shops. Now, with five dispensaries operating in the city, LaChapelle said none of those concerns came to pass.

Instead, the biggest effect was increased wear and tear on their roads.

“The revenue we’ve received from cannabis has largely been spent on our roads because they have been heavily impacted with the additional traffic,” she told BusinessWest.

The mayor added that it’s actually good news that the impact was on roads because many of them weren’t in good shape before cannabis came to town.

“We had to reprioritize which roads get paved because suddenly there are thousands more people driving on these roads,” she said.

 

Bottom Line

Now that the city is in a good place with its budget and has improved its bond rating since COVID, LaChapelle is reflective on how far Easthampton has come.

“I’m super proud of the people in our city departments and their leaders in how they’ve taken all our projects head on,” she said. “I feel we haven’t dropped any of the balls we were juggling before COVID.”

She quickly added that, because Easthampton is such a desirable place to live, there’s plenty of work to be done going forward.

That’s the reality when you’re the ‘cool-kid city.’

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 123: August 1, 2022

George Interviews Jennifer McGrath, communications manager at Six Flags New England

BusinessWest Editor George O’Brien has a lively discussion with Jennifer McGrath, communications manager at Six Flags New England in Agawam. The two discuss everything from the pandemic and its impact on the popular attraction to a surge in tourism this summer to the latest additions at the popular amusement park. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest  and sponsored by PeoplesBank.

Sponsored by:

Also Available On

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 122: July 25, 2022

George Interviews Eugene Cassidy, president and CEO of the Eastern States Exposition

Eugene Cassidy

BusinessWest Editor George O’Brien has a lively discussion with Eugene Cassidy, president and CEO of the Eastern States Exposition. The two talk about everything from what’s on tap for this year’s Big E, to what’s happening within the ‘fair’ industry, to the Big E’s impact on the local economy and its business community. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local and sponsored by PeoplesBank.

Sponsored by:

Also Available On

Law Special Coverage

Implementing Such an Initiative Can Provide a Number of Benefits

By Kylie Brown and Tanzania Cannon-Eckerle

Diversity, equity, and inclusion (DE&I) initiatives are being discussed more than ever in conference rooms, boardrooms, human-resources departments, and administrative offices. This is exciting, and for companies implementing these initiatives, one of the benefits incurred will be the creation of internal processes and procedures that will mitigate perceptions of discrimination and harassment in the workplace.

Massachusetts law requires that businesses maintain a harassment- and discrimination-free workplace. The law states, in summary, that it is unlawful to discriminate or harass in the workplace because of race, color, religious creed, national origin, or sex.

According to the related laws, a Massachusetts company has a duty to maintain a workplace that is free of discrimination and harassment. It would be fiction to state that it is possible for a company to ensure that it maintains an idyllic workplace for everyone. There are too many unique and diverse humans, too many variables. The good thing is the law does not require a company create an idyllic retreat.

However, it does require companies to do their due diligence to create and maintain a discrimination- and harassment-free workplace, and if something does occur that might meet the definition of discrimination or harassment, a company must address the matter in a timely fashion and implement remedial measures when and where necessary. As such, companies must prepare to manage the possibility of these occurrences. It would be most beneficial if a company did not wait to implement remedial measures in response to wrongdoing or after an incident has occurred; the programs should already be in place.

DE&I initiatives provide a multitude of benefits to an organization with returns that are both ethically and financially calculable, including assisting in the creation of discrimination- and harassment-free workplaces.

It can be difficult to calculate a financial return on prevention; however, in the realm of discrimination and harassment, prevention can be calculated by the declining costs of litigation. Creating a workplace that assures that policies are created to prevent harassment and discrimination, and that procedures are implemented to enable the consistent and equitable application of policies to all employees, will cause a decline in the appearance of harassment and discrimination and will diminish legal costs to a company — and costs to the company’s reputation.

The reason why DE&I initiatives work so well in this manner is because DE&I initiatives foster equity in the application of all workplace mechanisms and thus, once firmly established, naturally create a workplace environment free of discrimination and harassment, to the extent practicable. This is because, once DE&I initiatives are firmly established, most employees will feel a sense of belonging as they will feel heard and have a sense of empathy for their colleagues which fosters a team-oriented culture and problem-solving mindset. That not only prevents lawsuits, but it will also save money in the form of retention. Furthermore, data has shown that productivity and creativity increase, as does employee wellness.

Kylie Brown

Kylie Brown

Tanzania Cannon-Eckerle

Tanzania Cannon-Eckerle

“It can be difficult to calculate a financial return on prevention; however, in the realm of discrimination and harassment, prevention can be calculated by the declining costs of litigation.”

Unfortunately, many companies have leaders who have not identified DE&I as a cost-savings measure, or many leaders don’t know where to start. This article cannot, in the limited space provided, cover the entirety of what can be discussed in the realm of DE&I. However, we seek to plant a ‘can-do’ seed of desire to create DE&I initiatives in one’s workplace as a means of creating safe and discrimination- and harassment-free workplaces, by showing that creating such a workplace just takes a plan and a commitment to execute.

This article is one of a series that seeks to assist businesses with an inside-out approach, using existing resources to set up a sound foundation to grow a robust DE&I initiative within their company, and to create a workplace that is discrimination- and harassment-free while also becoming more ethical and more financially successful. It doesn’t have to be perfect. It can be tweaked along the way.

First, we start at the beginning. Let’s demystify DE&I.

 

What Does DE&I Even Mean? And What About Belonging?

Let’s broaden the concept to DE&I and B, or belonging.

Diversity means to be composed of different elements or offer variety. In application to the workplace, this translates to different people, through race, gender, and/or sexual orientation, with different cultural, social, and economic backgrounds, bringing their thoughts and ideas to the table.

Equity is the act of giving everyone in your pool of diversity fair treatment in access, opportunity, and advancement in the workplace, through processes and procedures implemented in a consistent manner. It’s recognizing we don’t all start from the same playing field and carries an idea of fairness and neutrality. That’s the difference between equity and equality.

Inclusion means being included in or involved in material decision making in the workplace at the appropriate level, and having the freedom or enterprise-level permission to weigh in on items of import that are relevant to one’s job and actually being heard. Identification of stakeholders are important here.

Belonging is what happens when a company has a strong foundation of continued diversity, equity, and inclusion processes, protocols, habits, and other customs of practice, and having a sense of being accepted as one’s authentic self at work that is supported by equity and inclusion. The goal should be to have an engrained DE&I model that is engrained in every aspect of the company so that it becomes common practice.

 

Where to Start?

First and foremost, focusing on DE&I must be in line with the overall business mission, values, and objectives in order to be successful. Second, there must be buy-in from all levels of the organization. Identifying what it will take to get that buy-in is important and will vary depending upon the audience. Third, identify the DE&I goals and why these are the goals. This is most likely dependent on what industry your company belongs to and how your company is structured.

Fourth, create a DE&I committee and identify who should be on the committee, and provide them with defined authority to act. This will create company accountability for continuing on with the initiatives. Fifth, do gap assessment. Where is the company now? Where does the company hope to be? What needs to be accomplished get there? What are the potential obstacles? How will they be overcome?

 

Gather Data

Focus on the return on the investment (know your audience). The return on investment might look different for the frontline supervisors than it does for procurement or accounting. Analyze the upfront costs, such as change in recruitment tactics, utilizing more networking forums, and potentially creating new roles to support the new business outlook

Where can we implement DE&I initiatives? DE&I can be external, by using diverse vendors, or internal, by establishing an equitable approach to handing out assignments. Every time a new business development is discussed, whether internally or externally, it creates another opportunity to include DE&I.

Identify stakeholders and talk to them. Encourage discussion on the topic of DE&I. Discuss their opinions on issues that impact them in the workplace. Gathering employee opinions and concerns will enable the company to make positive changes that will prevent issues and increase employee engagement. Hold open-forum discussions such as town-hall listening sessions — not talking sessions, where company executives talk at employees. These are great opportunities to listen to others and allow all staff to be heard.

A review of company documentation should be conducted to find existing areas where improvements may be needed. Obtaining statistical knowledge and data of the current demographics throughout the general workplace, as well as upper-level management, will help assist you in realizing where there is a need to implement DE&I.

 

Sell It

Make DE&I identifiable in the company mission. Make it a part of the company brand if possible. Involve company leaders in the celebration of meeting goals around DE&I initiatives. It is vital to get leadership support for the success of any DE&I initiative. Sell it to all employees. Create a well-thought-out communication plan. It is important that companies are knowledgeable about the prospective initiatives so they can answer any and all questions that may arise.

The company should support its initiatives by marketing them internally and externally to the general population, which could lead to potential exposure to overall business growth and development.

 

Implement It

At the core of implementing a successful DE&I program is implementing it in a manner consistent with the company mission, vision, and strategy. Including DE&I initiatives in your business model provides business growth opportunities and positive employee relations.

Implementation can start with recruitment, attracting different people from different backgrounds in order to bring new ideas to the table. Infuse DE&I in the employee-relations program by creating policies that are developed with the input of a cross-section of stakeholders and are consistently applied in an equitable manner.

Infusing all company mechanisms with DE&I approaches will be justified by the quantifiable growth and development it produces, as well as the prevention of discrimination and harassment lawsuits — and by the sense of belonging the company’s workforce maintains.

 

Kylie Brown is an associate attorney at the Royal Law Firm who specializes in labor and employment-law, and Tanzania Cannon-Eckerle is the firm’s chief administrative and litigation officer, who specializes in business and labor and employment law with certifications in Diversity, Equity and Inclusion and Workplace Investigations. The Royal Law Firm is 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.

Commercial Real Estate Special Coverage

Building on a Solid Foundation

Matt Flink was recently named president and CEO of Appleton Corp., the real-estate and property-management arm of the O’Connell Companies. He brings with him considerable experience in this field — and the football field, as a coach. He intends to lean on both as he takes the helm of the company with a solid foundation and opportunities for growth in a number of established niches.

Matt Flink enjoys going to the office every day.

But he especially likes Thursdays. That’s the one day of the week when all employees at the O’Connell Companies are asked to be in the office, with most of them working remotely at least a few of the other four days.

“I love Thursdays — all my friends are there, my colleagues are there — there’s a sense of energy and a liveliness and a vitality that I don’t necessarily get the other days of the week,” he explained, before adding a large-sized ‘but.’

“It’s not about me and what I want, it’s about what’s in the best interest of the company and the best interest our employees,” he went on, adding that remote work is popular, it has become a benefit — and an expectation — at O’Connell, and, as he put it, “the work gets done.”

This same dynamic is playing out in businesses large and small across the region and across the country, and that’s just one of many issues and challenges Flink is facing as he takes the helm at Appleton Corp., the division of Holyoke-based O’Connell Companies that provides property-, facility-, and asset-management services, along with accounting and financial services, to managers and owners of commercial and residential properties across a wide swath of New England.

“We can’t get caught up in old-school thinking that says, ‘it’s always been this way, so it has to continue to be this way.’”

He now presides over a portfolio of managed properties that includes everything from several transportation centers, including Springfield’s Union Station, to the Springfield Technology Park, retail shopping centers, medical offices, and industrial properties. It also includes a number of residential properties, including senior-living facilities.

The broad goal moving forward, said Flink, who was named successor to the now-retired Paul Stelzer last month, is to maintain and grow that portfolio and specific niches within it, such as those transportation centers. There are now several in the portfolio, including 12 in Connecticut, he noted, and the company will aggressively work to build on its track record of success in that realm.

As for the phenomenon of remote work and what it means to office properties here and elsewhere, Flink said property owners and managers, including Appleton, must be imaginative and open to alternative uses for those facilities, because he just doesn’t see things going back to the way they were.

“We can’t get caught up in old-school thinking that says, ‘it’s always been this way, so it has to continue to be this way,’” using that phrase to describe both the office setting and remote work, and how property owners should be looking to fill their spaces.

Flink brings more than 30 years of experience to his new role, a diverse résumé that includes work in Illinois, Colorado, Florida, and 10 years with O’Connell, during which he has served in various roles, including director of Capital Project Management.

 

He intends to tap that reservoir of experience, which includes work in construction, real-estate development, property management, and sales and leasing, while leading O’Connell to what he expects will be continued growth in an evolving, highly competitive marketplace that is acting and reacting in response to a number of forces, everything from shifting dynamics in the workplace to a still-changing retail landscape to the aging of the population and the need for more senior housing.

He also intends to borrow from his experience coaching youth football, especially when it comes to management and helping team members “understand that they’re probably even better than they think they are,” as he put it (more on that later).

“This opportunity with O’Connell gives me an opportunity to bring all that experience to bear in one location and participate in leading not only what we do Appleton, but in the larger effort that we make with our parent company, the O’Connell Corp.,” he said. “To me, it’s the most logical place for me to land at this point in my career.”

 

Space Exploration

The Appleton Corp. is approaching its 50th birthday, said Flink, noting that it was launched in 1974 by the O’Connell Companies, a Holyoke fixture for more than 140 years now. The larger corporation also includes Daniel O’Connell’s Sons, a large regional general contractor; Western Builders; the O’Connell Development Group; and New England Fertilizer Co.

Appleton is the property- and facility-management company in what Flink called a “vertically integrated stack.” Appleton manages commercial properties, industrial buildings, warehouses, educational facilities, and multi-family housing properties, including many that are subsidized, especially to senior populations, although some are market-rate.

“We manage properties that we own,” he explained. “But we also manage a lot of properties for third parties that own buildings; we do a lot of management of facilities owned by government entities, such as the technology park and the rail stations.”

It’s a diverse portfolio, as he noted, and it includes everything from an Amazon ‘last-mile’ facility in Holyoke to a biotech research facility on the campus of Worcester Polytechnic Institute. There are some established niches the company has developed, he said, adding that senior housing has long been one of them.

“The things that I learned about coaching my players transfer so wonderfully to our life at the office. I learned that I can’t coach every player, and every employee, the same way; people respond to different types of motivation, different types of stimulation.”

Meanwhile, transportation-facility management has become another niche, he said, adding that there are unique qualities to managing such properties, including the “interface between the public and private,” as he called it.

“Springfield’s Union Station is a perfect example; you have users of the bus facilities here — the PVTA, Peter Pan, Greyhound — and you also have Amtrak and CT Rail bringing people in on the tracks overhead, and all the people using those facilities circulating throughout the concourse,” he explained. “At the same time, you have several businesses that function there, so you have private folks parking in the garage, walking through the concourse, grabbing something at Dunkin’ Donuts, and then going upstairs.

Springfield’s Union Station.

Matt Flink says Appleton has developed a solid niche managing transportation centers, including Springfield’s Union Station.

“Maintaining safe conditions, clean conditions, secure conditions, is an important element in managing those types of facilities,” he went on. “For us, it is a niche market, and one we will continue to pursue.”

Moving forward, and from a strategic perspective, Appleton is focused on two key areas — business development and continuous improvement of the service provided to customers.

Overall, Flink said he has inherited a strong foundation and healthy portfolio from Stelzer, so he doesn’t have to reinvent the wheel, just maintain and build what is in place, with a focus on people and giving them the tools they need to succeed.

“It comes down to keeping our current portfolio stabilized, looking for continuous process improvements along the way, making better use of technology to better serve our customers, and making better use of technology so we ourselves can become more efficient,” he said. “And, at the same time, continuing other lines of our business and, as with those transportation facilities, looking outside of our traditional windows of opportunity. I think we’re well-positioned and well-placed to do that kind of work.”

the Springfield Technology Park.

The Appleton portfolio includes a diverse mix of properties, including the Springfield Technology Park.

As he goes about all this, he will call on not only previous work experience — and there is plenty of that — but also time spent coaching, especially football, at both the youth and high-school levels.

“The things that I learned about coaching my players transfer so wonderfully to our life at the office,” he said, by way of explaining how his work on the sidelines has shaped his management style. “I learned that I can’t coach every player, and every employee, the same way; people respond to different types of motivation, different types of stimulation.

“Some just need me to sit and listen to them and hear them and not even comment much, but just know that I’m hearing them,” he went on. “Some want a really deep and intense dialogue and to take a deep dive into the issues, and want me to act as a sounding board and really spend time devoted to solving problems or envisioning problems and coming up with mitigation strategies. As much as anything, I’ll be a coach trying to help each of our employees find a better version of themselves every day, with the goal of being a little better today than I was yesterday. And tomorrow, I really hope I’m better than I am today.”

 

Changing Dynamics

Returning to the subject of the office market and what will happen moving forward, Flink said there are many unknowns when it comes to this issue, and it will certainly take some time for the market to fully shake out.

By that, he meant everything from whether office workers will return and when — some are back, but across the country, many are not back or are working in hybrid arrangements — to how properties might be repurposed if they are not used for offices moving forward.

It’s a complex matter, he said, using the O’Connell family of companies as an example of how businesses managed to get work done, and done well, during the pandemic with almost all employees working remotely.

“For 475 days, plus or minus a day or two, we were essentially shut down in our corporate offices with just a few of us there,” he recalled. “What we learned in that period of time is that we can do that very successfully. We can allow people to work at home, we can give them the time they need to attend to things in the middle of the day, but all of us got our work done; we paid bills on time, we responded to requests for proposals on time … we did everything we needed to.

“Our experience in that space is similar to what we’re seeing around the country in that space,” he went on. “The pandemic forced people to rethink how they deliver their work product, what vehicle they use to deliver their work product; at the same time, there began to be a demand, a desire, to stay home once the pandemic eased up and people could return to their office space.”

This concept of remote work has turned into a benefit, he told BusinessWest, much like a 401(k), a vacation, or health insurance. And there is an expectation for it among job seekers and existing employees alike.

These factors have collectively reduced the demand for office space, he went on, adding that there are a few cases within the Appleton portfolio where tenants, specifically large call centers, have contracted substantially.

In one case, space was successfully backfilled, largely with government entities, Flink noted, adding that this may prove to a blueprint for many properties moving forward.

“Repurposing some of those commercial spaces for other user groups is going to be important,” he said. “Going forward, owners and managers of commercial real estate, at least for the short term, and maybe for the long term, depending on how the market responds to this concept of remote work, are going to be clever in how they look at various user groups.”

Imaginative reuse has been the watchword in retail for some time, he went on, noting that, as more shopping is done online, there has been less need for bricks-and-mortar facilities. Larger properties such as indoor malls and strip malls have adjusted by repurposing space for bowling alleys, laser tag, trampoline facilities, and more. Meanwhile, the cannabis industry has had a profound impact on the commercial real-estate landscape, absorbing large amounts of different kinds of spaces, from old mills in Holyoke and Easthampton to storefronts in many communities to a portion of the Springfield Newspapers building.

“Whether it’s that [cannabis] or seeking government entities where you may have looked to place a private tenant before, all this speaks to the need to be clever and really think outside the box and be open to other possibilities in that commercial marketplace,” said Flink, noting that the tech park at STCC is an example of this dynamic. A large call center has moved out, but over the next few years, he expects those spaces to fill back to something close to pre-pandemic levels.

 

Goal to Go

Getting back to football coaching and how it influences how he manages people, Flink summoned that often-used saying — among coaches and business owners alike — about people needing to give 110%.

“You don’t have to be a math major to know that this is literally impossible — you can’t give more than 100%,” he told BusinessWest. “What it comes down to, whether you’re coaching young athletes or spending time with senior-level executives on our staff, is redefining for people what their true capacity is. Very rarely do we operate at our true capacity; we’re blocked at times by our own negativity or the negative thinking of others. But we’re all capable of being more than we think we are, and helping people to understand where their 100% exists, and how they can live in a world that touches on that more often, is something that I’m passionate about.”

That’s one of many passions, and lessons, from past experiences that Flink will bring to his challenge, one that, as he said, is the logical place for him to be.

 

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

Special Coverage Technology

The Future Is Here

It’s striking to think that many young professionals entering the workforce today have never known a world without high-tech devices, many designed to be used on the go, that address every possible work and leisure need. And those devices have only become more powerful over time, with a wider array of options and price points. In its annual look at some of the most intriguing devices available, BusinessWest dives into what the tech press is saying about some of 2022’s hottest products for the home or … well, anywhere else.

 

Connecting and Computing

Among this year’s crop of smartphones, the Samsung Galaxy S22 Ultra ($1,199) has been getting plenty of raves. In fact, Spy calls it “the first true flagship phone to beat for 2022.” The site praises Samsung for bringing back the S Pen stylus, a popular feature with Samsung’s Galaxy Note series. “It’s also a beast when it comes to capturing photos and videos with its quadruple camera system, offering excellent image quality and low-light performance. You’ll have plenty of versatility with this package because you can get very close with its 100x space zoom telephoto lens.”

 

You’ll find no shortage of love for Apple’s newest models as well, the iPhone 13 Pro ($999) and 13 Pro Max ($1,099), which, boast the best cameras and battery life of any iPhone to date, CNET notes, as well as high-end features like the ability to record ProRes videos. “By packing the 13 Pro and 13 Pro Max with features many of us have wanted for years, including a display with a high refresh rate, Apple further defined the difference between its Pro and non-Pro phones. Three years ago, by comparison, the word Pro seemed more of a marketing term than an indication that the phone was any more professional than a regular iPhone.”

 

In the laptop world, the Dell XPS 13 Plus (starting at $1,449) “is a sleek computer that’s built around the latest and most powerful Intel Core processors,” Business Insider notes. “In lieu of click buttons, it uses a seamless glass touchpad surface and replaces the function keys with a top row of touch-sensitive function buttons.” In addition, Dell’s updated RapidCharge Express 2.0 technology can charge the battery up to 80% in under an hour. “Innovations like this,” the publication noted, “can benefit users and keep Dell ahead of rivals.”

 

Among today’s monitors, BBC Science Focus raves about the Samsung M8 smart monitor ($579). “With an affordable price tag, and an overkill of connection options, the Samsung M8 could be the perfect monitor for a lot of people. It doubles up as a TV and monitor, offering smart TV with Netflix, YouTube, and most streaming platforms, as well as connection options for most laptops, AirPlay for Apple products, and even DEX to connect your Samsung smartphone as a computer. Not enough? It also has built-in speakers, a 4K display and an added webcam.”

 

Need to keep your devices charged in the car? The Baseus USB-C Car Charger ($19) is an inexpensive device with a 65-watt USB-C port that can power up most laptops, according to bestproducts.com. A USB-A charging connector with a maximum power output of 18 watts is also included. “The product has a sleek design with translucent housing, a built-in voltage display, and onboard illumination. It has built-in tech to protect the connected devices from overcharging and overheating.”

 

That’s Entertainment

There’s no doubt that the explosion of entertainment choices we can stream on dozens of services has transformed the way we watch TV. At the same time, smart TVs have grown larger and less expensive over the past few decades. Among today’s models, Esquire praises the LG Electronics C1 65-inch OLED HDTV ($1,379). “With a beautiful picture and a sleek, stylish design, LG’s OLED TV is one of the best on the market. Plus, it can connect to Amazon Alexa devices so your whole house is hooked up.”

 

Most TVs aren’t built to survive the elements, but the SunBriteTV Veranda Series 3 ($2,899) is specifically designed for the outdoors. “In addition, it offers a few key advantages over previous Veranda models, including a brighter and much more colorful picture with support for Dolby Vision, as well as a full suite of Android TV features such as streaming media services, Google Assistant voice control, and the ability to mirror your phone,” PC Magazine notes, adding that, while the price tag is high, “you’re paying a premium for a TV you can use outside without worry.”

 

Gamers have more options than ever before as well, but for many, PlayStation still reigns supreme. Calling it “the best plug-and-play gaming platform available,” Digital Trends says the PlayStation 5 ($499), boasts “lightning-fast load speeds, a new controller, and a phenomenal lineup of launch titles (including fan favorites and new exclusives).” In fact, the magazine noted that the PS5 not only easily bests the Xbox when it comes to game selection, Sony has now brought backward compatibility into the fold, so the PS5 will be able to play most PS4 games. “The PS5 simply has the best game library out there right now.”

 

Speaking of new ways to play, “virtual reality might take its time to have its ‘iPhone moment,’ but it is still very much the next big thing for the coolest gadgets,” Spy notes, and no VR device flashes that promise more than the Meta Quest 2 ($299). Without the need for a powerful computer or special equipment, users can simply strap the Quest 2 (formerly Oculus) to their head, pick up the controllers, and move freely in VR space, thanks to its inside-out technology, which uses cameras placed outside the headset to track the users’ movement in the space around them.

 

Then there’s the Samsung Freestyle ($799), a new portable entertainment device that combines a projector and smart speaker into one compact package. It supports 1080p projection at up to 100 inches, offers access to a wide variety of streaming apps, and delivers 360-degree sound with built-in Alexa voice control. “The Freestyle stands out from other compact projectors thanks to its rotating cradle that makes it look like a portable spotlight,” Business Insider notes. “It also has automatic picture adjustments that could make it a breeze to set up virtually anywhere. It can even plug into an overhead light socket so you can project onto the floor or a table.”

 

Life on the Go

Smartwatches are all the rage, and the Apple Watch Series 7 ($329) ranks highly across most rating sites. With a bigger case and a larger screen than its predecessor, “the product also has best-in-class health-, fitness-, and wellness-tracking capabilities, powered by accurate heart-rate and blood-oxygen sensors, according to bestproducts.com. Apple offers the Series 7 with a 41- or a 45-millimeter case in a multitude of finishes, optional cellular network connectivity is available, and wearers can customize the timepiece with a wide selection of bands. “New year, new Apple watch,” Esquire adds. “The 20% larger screen makes all the difference.”

 

In the category of hybrid smartwatch, which combines connectivity with traditional watch mechanics, bestproducts.com chooses the Everett Hybrid Smartwatch ($179), calling it a feature-packed device with a built-in, always-on display and heart-rate sensor. “We like that, instead of looking like a tech product, it resembles a classic chronograph timepiece with mechanical hands and a three-button layout.” The stainless-steel timepiece is waterproof up to 30 meters, and it is available in several finishes, with an easy-to-replace band or bracelet.

 

Need a pair of quality headphones and don’t want to splurge on Apple AirPods? Then the clunkily named but sleekly built Sony WH-1000XM5 ($399) may be the way to go, BBC Science Focus notes. “These, like their predecessors, are some of the best headphones around. In terms of specs and audio, these are extremely similar to Sony’s renditions from before. They offer market-leading audio across the lows, mids, and highs, excellent noise cancellation, and you get an array of smart ambient features.” The site also praises the lighter, more minimalist design.

 

In the market for a drone? “Every year,” BBC Science Focus notes, “the DJI’s Mini series gets smaller and yet more powerful, cramming high-end specs into a lightweight drone that you can chuck in your bag. But with all those improvements comes an eye-watering price, and an increasing fear for your financial status if you crash it.” The DJI Mini 3 Pro ($759) offers advanced obstacle avoidance features, a rotating lens to film in portrait or landscape, 4K video, smart flying features like automatic tracking, and the ability to follow a subject, the site notes. “Despite its higher price, this feels like the perfect drone for beginners, those who like to travel, or really anyone in the market for a lightweight, high-tech drone.”

 

At the end of an active day, why not wind down by grilling dinner — wherever you are? The BioLite FirePit+ ($249) is a small, efficient fire pit that burns charcoal and wood. More than 50 air jets deliver oxygen to the fire for a uniform temperature and reduced smoke, while a rechargeable battery runs a built-in fan for controlling the fire up to 30 hours, according to PC Magazine. “You can cook on top of the included grill grate for direct contact with the flames or pick up a cast-iron griddle accessory. Bluetooth lets you control the flame intensity and fan speed with your phone, for a smart grilling experience no matter where you are.”

 

Around the House

Home security systems are nothing new, but if you’re looking for an extra layer of security, the Ring Glass Break Sensor ($40 for one, $70 for two) can detect break-in attempts through glass windows and doors from up to 25 feet away, Wired notes. Users will need a Ring Alarm or Ring Alarm Pro to use it, and the sensor can be configured the sensor to trigger a siren when it detects broken glass.

 

Sometimes home security means being prepared when the power goes down. The Anker 757 PowerHouse generator ($1,399) is powered by a lithium iron phosphate battery, which is the same type of battery used to power various electric vehicles, and “it’s a beast,” Gear Patrol notes. “Its multiple ports and outlets allow will allow you to simultaneously charge various gadgets, including your laptop, smartphone, and tablets, as well as power larger appliances like a refrigerator, a TV, or multiple outdoor lights.”

 

Air purification is a different kind of home safety product, and Gear Patrol touts the Wyze Air Purifier ($135), which can be purchased with one of three different filters, among the best on the market. “The air purifier works with the Wyze app, and, once set up, it can send you real-time status updates and alert you as to when it needs cleaning.” According to the company, each purifier is capable of cleaning 500-square-foot room more than three times an hour.

 

Wired has some ideas for making life easier as a pet owner, like the Smarty Pear Leo’s Loo Too Litter Box ($600). “Veterinarians say automatic litter boxes, while convenient, make it tough for owners to keep tabs on their cat’s bathroom trips — which can be useful for flagging any potential illnesses. The Leo’s Loo Too solves this with a built-in sensor that tracks how often your cat goes, along with its weight, and syncs the data to a companion app on your phone.” The device comes with additional features like UV sterilization and radar to keep the box from self-cleaning while the cat is nearby.

 

Speaking of animals, Wired also recommends the Bird Buddy Bird Feeder ($200), which “gives new meaning to bird watching. Not only does this cute little home feed birds, but its battery-powered camera offers a live feed via the connected app. If that’s not entertaining enough, it’ll snap photos of said birds, identify the species, and present a ton of facts about each one.”

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 121: July 18, 2022

George Interviews Nate Costa, president of the Springfield Thunderbirds

Nate Costa

BusinessWest Editor George O’Brien talks with Nate Costa, president of the Springfield Thunderbirds. The two discuss the team’s strong finish last season (an Eastern Conference championship), it’s lengthy playoff run, and how the team intends to build on all the momentum built during its surge to the top of the standings. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local and sponsored by PeoplesBank.

 

Sponsored by:

Also Available On

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 120: July 11, 2022

George talks with Peter Picknelly, chairman of Peter Pan Bus Lines and president of OPAL Development

Peter Picknelly says fuel prices affect more than the transportation sector he works in

BusinessWest Editor George O’Brien talks with Peter Picknelly, chairman of Peter Pan Bus Lines and president of OPAL Development. The two discuss everything from the price of diesel fuel to the housing project taking shape in Court Square. But mostly, they focus on Picknelly’s recently revealed, very ambitious plans for a new courthouse in Springfield, a project he believes will reshape the riverfront in Springfield. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local and sponsored by PeoplesBank.

 

 

Sponsored by:

Also Available On

Special Coverage Women in Businesss

The Right Ingredients

The staff at the Ekus Group

The staff at the Ekus Group in the reference library that Lisa Ekus has built over the past 40 years.

The Hatfield-based Ekus Group describes itself as a ‘full-service culinary agency.’ This is a unique niche obviously, one that has been successfully cultivated over the past 40 years, during which time the name Ekus, like the names of many of the authors the company represents, has become known across the country and around the world. Summing up the broad range of services, partners Lisa and Sally Ekus (mother and daughter) say they “bring chefs out from behind the stove.”

If one wanted to gain a full appreciation for how the company started by Lisa Ekus back in 1982 has grown, evolved, and emerged over the past 40 years, maybe the place to start is in what she calls her reference library.

It has become the centerpiece — although there are several of those — of the 250-year-old renovated farmhouse in Hatfield she calls home. She started with a small collection gathered in high school and college, and has grown it to 7,000 volumes, with more added seemingly every week; there’s a pile of books outside her office for reading and possible addition to the collection.

There are works of fiction placed in one small section, but the rest — much like Ekus’s career, and that of her daughter, Sally Ekus, now a partner in this venture — are devoted to food and cooking. The volumes are carefully cataloged and arranged by various subjects, meaning everything from food types to geographic regions, authors to individual countries; she recently added two volumes on Polish cuisine.

“There were agencies that did book PR. But we really honed in on chefs, cookbooks, food companies, and understanding the evolution and growth of what was happening on a very vast global stage.”

The library, like her work to create what have come to be known as ‘culinary celebrities,’ is a passion.

“It’s all organized physically, it goes around the globe by country, and then it goes through our country by region,” she told BusinessWest. “And there’s specialty, single subjects — soup, health and diet, wine … you name it. I’ve read maybe 75% of them and I’ve touched them all in some way.”

When asked what makes a book worthy of placement in the library, Sally answered for her mother. “It has to be … unique.”

That’s a word that could, and should, also be applied to this business, formerly known as the Lisa Ekus Group, but changed recently to reflect Sally’s more prominent role. Indeed, there are few companies like this anywhere, and probably only one in a rural setting like Hatfield. And while the library does a good job of conveying its growth and presence, it doesn’t … well, tell the full story — pun very much intended.

To fully understand, we need to visit other rooms of the house, which is adjacent to the company’s offices and plays a huge role in day-to-day activity.

Like the dining room and its massive table. Here, Lisa Ekus has hosted literally thousands of people for dinner over the years, including culinary celebrities such as Julia Child, Emeril Lagasse, and countless others.

Sally Ekus, left, with her mother and business partner, Lisa Ekus.

Sally Ekus, left, with her mother and business partner, Lisa Ekus.

Or the nearby kitchen, which doubles as a TV studio where many of these same chefs have mastered the fine art of cooking for a television audience, a business niche that the Ekus Group has cultivated over the years.

Or the large side porch that Ekus added on the property several years ago. Here, she does more entertaining with those who have become celebrities and those who want to gain that status.

Or the Airbnb that she recently opened with the appropriate name Cooks Chateau. As the pandemic has eased and leisure and business travel have returned, she has booked the space for the next several months, and projects that it will eventually become a solid profit center.

Together, these spaces in the Ekus home speak to a hugely successful business, one that continues to add new lines to its recipe for success, such as a virtual “How to Write a Cookbook” course that Sally considers a logical extension of what the company has done for the past four decades (more on it later).

Looking ahead, Sally said the company will continue to evolve and grow, but likely remain a boutique, as in “small” agency that can provide personalized service to its many kinds of clients.

“It’s not ‘here’s a book — let’s sell it. We want to identify the unique selling points and where in the marketplace this might fit; how can we help an author and a publisher articulate what the primary focus and goal of this particular book is. That’s what we do.”

“We have a desire to grow intentionally in a way that continues to support the work that our current team loves to do and also potentially bringing in a handful of new talent to grow things like our agent-representation program and our talent representation, and also continue to buildout our workshops and culinary expertise,” she said.

For this issue and its focus on women in business, we talked with Lisa and Sally Ekus about the first 40 years at this unique business and what may come next. Putting it in perspective, Lisa stated the obvious:

“We have so much fun with what we do; it’s one of the best industries to be in.”

 

Course of Action

For Sally Ekus, the phrase ‘growing up in the business,’ has perhaps more meaning than it does for most second-generation business owners and managers.

Indeed, since the Ekus home was — and is — also the office, but also the place where countless celebrities and celebrities in waiting came to meet with Lisa Ekus, cook, dine, and chat after meals with her, and Sally was part of all that; she literally grew up in the business — and around people like Julia Child.

And while she fondly remembers what she calls “the good old days,” she came of age, and became part of the business, as the scene was changing, with developments such as blog-to-book deals, online recipes, the rise of self-publishing, and much more.

From left, Lisa Ekus, Julia Child, and Irena Chalmers

From left, Lisa Ekus, Julia Child, and Irena Chalmers, a noted author and food commentator at one of many gatherings in the backyard of the company’s home in Hatfield.

Today, the company still celebrates the old while embracing the new, and Sally and Lisa are planning the next courses, if you will, for this venture, while continuing to provide the services that have made this company so successful over the past four decades. Summing them up, Lisa said she, Sally, and the assembled team “bring people out from behind the stove.”

By that, she means that the company helps those with culinary skills cultivate a brand while also helping them develop expertise in other areas required to become a true culinary celebrity — everything from writing a cookbook and getting it published, to learning how to cook for a television audience, to effective self-promotion.

While there have been cookbooks for perhaps a century now, there wasn’t, until recently, a focus on the chefs, the authors of these cookbooks, said Sally, noting that the Ekus Group devotes its energies to putting them front and center, and making them, as much as their recipes, the stars of the show.

It’s a package of services that, together, make the company unique and has enabled it to assemble a client list that is a veritable who’s who in the culinary world, with luminaries such as Haile Thomas, Toni Tipton-Martin, Davis Olson, and many others.

Turning back the clock 40 years, Lisa Ekus said she started her company to fill a need for a business that focused on book PR. She moved to the valley from New York City and brought with her an extensive portfolio of connections and experience.

“I developed the business because of, and through, my connections in New York publishing,” she explained. “So, I had a great base upon which to draw clients and get recommendations.”

In essence, she was doing remote work before anyone knew what remote work was, she went on, adding that she loved the lifestyle in Western Mass. and was committed to building a business here and traveling back to Gotham — or anywhere else she needed to go — when needed.

Over the next several years, the company would develop a culinary niche and become, in her estimation, the first and only culinary PR book agency in the country.

“There were agencies that did book PR,” she went on. “But we really honed in on chefs, cookbooks, food companies, and understanding the evolution and growth of what was happening on a very vast global stage. Our niche was putting it forward in book form.

“We worked to put our authors and their expertise out there through the covers of their books,” she went on. “No one had really focused on the personalities, the experts within the categories they wrote about — like Rose Levy Beranbaum and desserts; she wrote The Cake Bible, or Lynn Rosseto Kasper, who founded and was the host of Splendid Table for decades; she was an expert on the Emelia-Romagna section of Italy.

“Books were just put out there,” she continued. “And we really brought the expertise forward on a national level. And I really love personally to understand where someone comes from and what they write about. It’s not simply another book about cookies or Italy or wherever; it’s understanding and taking a deep dive into food.”

 

Stirring Things Up

While the Ekus Group remains grounded in the principles and services on which it was founded, it has certainly evolved over the years and changed as the times have.

The biggest change has simply been the emergence of food and cooking, said Lisa, noting that, 40 years ago, there were very few celebrity chefs, no television networks devoted to the subject, exponentially fewer cookbooks being written annually, few who knew what veganism was, and far fewer people who would say they are really into the culinary arts.

Starting in the early 90s, things started to change, she recalled, and today the landscape is much different.

“We’re willing to, and want to, explore food origins,” Lisa explained. “We want to say, ‘I’m going to cook an entire Korean meal this weekend, and I’m going to buy authentic ingredients and I’m going to make it from scratch. People have taken up cooking and food as a major hobby, and it’s a huge sector economically in the country.”

Elaborating, she said the food business has transformed itself into the food businesses — hundreds of different types, from importers to retailers to specialty food purveyors.

The Ekus Group has positioned itself to thrive in this environment, said the two partners, through the cookbook, but also a hard focus on serving those who want to be players in this movement, if it can still be called that, be they book writers, bloggers, podcast hosts, or simply those who want to take their culinary skills to another plane.

Ekus’s home

Top, the kitchen in Lisa Ekus’s home doubles as a studio for training chefs om how to cook before a TV audience. Above, one of the rooms in the Cooks Chateau.

Elaborating, Sally said the company is working with several hundred clients a year and perhaps a few dozen at any given time on specific book projects. Overall, the work involves building their brand, she said, and taking them beyond their first book, although they certainly help many get started.

“Oftentimes, it’s not just one book or the first book, although we love that it starts there,” she explained. “It’s the second, the third, fourth, fifth, and beyond; we help them build their brand through their publishing career.”

Lisa agreed, and said the company helps those at various stages of the book-writing process, from developing a concept, to finding a publisher, to shooting a photo for the cover.

The broad goal is to ‘position’ the book, she went on, adding the Ekus Group specializes in this value-added service.

“It’s not ‘here’s a book — let’s sell it,’” she told BusinessWest. “We want to identify the unique selling points and where in the marketplace this might fit; how can we help an author and a publisher articulate what the primary focus and goal of this particular book is. That’s what we do.”

Moving forward, the company is always looking for different ways to share its expertise in this large and growing market, she went on, adding that this mindset has led to new and different initiatives, such as the online How to Write a Cookbook course.

There are many such courses on the Internet, said Sally, but few if any that bring the Ekus Group’s level of expertise and understanding of what makes a book successful at a time when shelves are crammed with new titles, and more are written every week.

“I realized that we were getting the same questions about publishing, and cookbook publishing in particular, over and over again, whether they’re from our clients, the consults that we do, or just general curiosity in this industry,” she explained. “So a few years ago, I thought ‘how can we extend a core value of ours, which is to be a resource in this industry?’ And I put together this course, which is an extension of our expertise.”

Elaborating, she said it helps answer questions about self-publishing versus traditional publishing, how to stand out, the role of agents, and much more.

Thus far, the course, which features more than 20 “exclusive, insider tips” from Sally Ekus, has drawn considerable interest, said the partners, adding that it complements other services, such as training in culinary media, which ranges from cooking on TV or before a live audience, to conducting a radio interview. Cooking is one skill, said Sally, but media appearances are another … kettle of fish.

“There are a lot of people who say ‘I’m a food expert,’ or ‘I want to be famous and cook and talk on television,’” she said. “But there’s a very specific skill and personality that needs to be cultivated and trained, so we developed this program, which is the first of its type in this space.”

Over the past 40 years or so, hundreds, including celebrities like Lagasse, known for his mastery of Creole and Cajun cuisine, have had such training in that kitchen in the Ekus home.

As noted, countless cooking celebrities have come to Hatfield over the years, and now more are making the trek with the new Airbnb, which, as its name indicates, has a culinary focus.

“People can visit us, whether they’re a client or not, and be inspired, write, cook, visit the library, and more,” said Sally, adding that as more people become more comfortable with travelling, she expects that the space will become popular with those looking for a quiet spot to create — whether it’s with a laptap or on a stove.

 

Food for Thought

Summing up 40 years in business and the mindset that drives the Ekus Group, Lisa said, “some people eat to live; we live to eat and to celebrate the writers, the authors, the cooks who are doing it so brilliantly.”

And by celebrating them, it is helping them navigate the path to becoming celebrities — on one level or another.

This business is, like those books on the reference library shelves, unique. And as the business marks 40 years, those rooms in the Ekus home show just how far it has come and where it can still go.

 

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

Cannabis Special Coverage

Delivering on Business Promise

partners in Budzee.

From left, Kevin Perrier, Volkan Polatol, and Erza Parzybok, partners in Budzee.

Volkan Polatol didn’t actually speak the words, but he strongly implied them: ‘If this was easy, then everyone would do it. Or at least try.’

The ‘it,’ in this case, is delivery of cannabis products — Amazon-style. Polatol, teaming with Kevin Perrier and Ezra Parzybok in a venture called Budzee, has created such a service, believed to be one of the very few in this region, and the country, for that matter.

As the partners talked about their business, they addressed that logical question about why they are the first and why there are not more ventures addressing what appears to be a logical need within the marketplace.

And the simple answer is that this isn’t as easy as it looks. And it doesn’t even look easy.

Indeed, there are complex licensing issues to overcome, software programs to develop, logistics, myriad expenses — from buying dedicated, unmarked vehicles to outfitting them with special equipment, to staffing each vehicle with two people (one of many requirements to be followed). And now, gas costs more than $5 a gallon.

“All of this is incredibly expensive, and it’s very difficult; we had to create the model,” said Polatol, who summed it all up by saying that a roadmap had to be in place for such a unique venture.

Parzybok agreed, and elaborated — on the many challenges facing this venture and all businesses in the cannabis sector.

“There’s a strain put on these businesses when the state invents all these rules that make it difficult to run a smooth, profitable business,” he explained. “The rules for cannabis are more strict than for pharmacies that sell opioids; they’re more strict than those for the delivery trucks that deliver alcohol. All that costs money.”

The partners who created Budzee, all veterans of this industry in one capacity or another, have chosen to take on all these challenges — they opened their doors this past spring. And that’s because, despite all these hurdles and expenses, they see real need for what they’re doing. They also see a path to profitability — not right away, but certainly some day, and perhaps soon as word of their venture grows and more people decide that it’s easier to have cannabis products delivered to their door than it is to travel to an area dispensary.

“There are people who can’t drive to a dispensary,” said Polatol. “Meanwhile, even though cannabis is legal in this state, there is still a stigma out there; some people don’t want to be seen in dispensaries. There’s still a great many people who want to be home, and they like the convenience of things being delivered to them.”

“There’s a strain put on these businesses when the state invents all these rules that make it difficult to run a smooth, profitable business. The rules for cannabis are more strict than for pharmacies that sell opioids; they’re more strict than those for the delivery trucks that deliver alcohol. All that costs money.”

And that brings the partners, who have invested more than $1.2 million to move Budzee off the drawing board, to the major challenge that remains for them — educating the public about this service and the convenience it brings.

“There’s considerable work to do to educate the public about this,” said Polatol, adding these efforts are ongoing. “Once we get established, people will understand; there are so many non-cannabis models out there — from Domino’s Pizza to Amazon. Once they understand it, it clicks. To get it out there, though, will require marketing, marketing, and more marketing.”

Parzybok agreed, and said that in time, consumers will come to understand, appreciate, and embrace the convenience just as they have in many other industries where home delivery has become an important part of the business model.

“It’s a new industry, so you assume that most licensed categories are going to be profitable,” he said. “You can look at the numbers for retail establishments or see the lines coming out the door when retail was opening, so you just assume that people will also embrace delivery. But when Amazon first came out, people were like ‘why should I buy something on the Internet when I can just go get it at the grocery store?’ But now they realize that they never have to bring it in from their car again.”

ideally situated off I-91

Budzee’s location in Easthampton is ideally situated off I-91

Getting the word out, and creating a comfort level with home delivery of cannabis products is essential, because with this model — where Budzee is charging the same price for products as one would pay if they went to a dispensary (there is a $100 minimum) — relies on volume. And creating it will be the primary assignment moving forward.

“It’s all about scaling up,” said Polatol, adding the goal is to eventually serve the entire state and build a large portfolio of new and repeat clients.

For this issue and its focus on the region’s emerging cannabis industry, BusinessWest talked with the partners at Budzee about the venture, what it took to get it off the ground, and how they anticipate that it will continue to gain altitude in the months and years to come.

 

Creating a Buzz

As they offered BusinessWest a quick tour of their facilities — dominated by signs that read ‘authorized personnel only’ or ‘Do Not Enter — Limited Access Area’ — on just about every door — the partners stopped in the large vault area where the various cannabis products are stored and then gathered for delivery.

There are literally hundreds of different products on the shelves — a selection larger than what is to be found at most dispensaries, said Polatol — with names ranging from Rootbeer Float to Blue Sunshine; Purple Pineapple Express to Sundae Driver.

Putting such a portfolio of products together has actually been one of the easier aspects of this enterprise, they noted, adding quickly that just about everything else — from the software to the business model; from the licensing to the logistics — is difficult and, in many ways, pioneering.

Turning back the clock roughly two years, Polatol said the three partners came together behind the idea that the region needed a service that would ‘bring cannabis to your house like a pizza,” as he put it, and conviction that this team had the expertise, determination, and patience (a key ingredient to be sure) to make this happen.

There were some courier-like businesses working on a DoorDash model, said Polatol, but the concept they had, for a warehouse, Amazon-like model, was totally unique for this region, and the country, as far as they knew.

The vault at Budzee

The vault at Budzee holds a wide variety of products for delivery to customers.

The partners already knew each other well. Polatol and Perrier are the owners of the dispensaries Dreamer Cannabis in Southampton, and Honey in Northampton, and Parzybok served as a licensing consultant on those ventures. United in their vision for this new kind of business, what they put together a checklist of everything that was needed, and then a roadmap for taking the concept from the drawing board to the marketplace.

The first item on the list was a license, which was somewhat problematic, because the state was, and still is, awarding cannabis-delivery licenses exclusively to those who qualify for the state’s social equity program — meaning they were previously harmed by the nation’s war on drugs.

Enter Parzybok, who was arrested in 2015 after federal agents raided his home in Northampton and eventually seized dozens of marijuana plants; he received probation for the offenses.

The license-application process was lengthy and complex, mostly because of the new ground being broken, but also because the Cannabis Control Commission has historically been methodical when issuing licenses, said Perrier, adding that this bridge would eventually be crossed.

The partners also needed a location, and realized that they actually had one in property that Perrier owned in Easthampton that was ideally situated less than a minute from an exit onto I-91, positioning the company to deliver to the four counties of Western Mass. and beyond.

They also needed software for taking orders, vehicles, specialized equipment, drivers (a challenge when all companies are looking for help), and a system for safely getting products into those vehicles and then into the hands of customers.

All those hurdles were cleared early this year, and the company commenced deliveries in early April.

Most of these have been in and around Springfield, but there have been some farther east; the territory attached to the license is essentially everything west of Worcester. And the two-person teams (one drives, the other brings the items to the door) are delivering the full spectrum of products, from flowers to edibles to accessories.

Deliveries come on three levels: ‘express’ (within two hours, but usually less than that); ‘same day,’ where the customer picks a time slot, and ‘scheduled,’ where the customer picks the day and time.

Thus far, business has been good, but the venture is still very much in the ramping-up phase as awareness of the service builds, the public becomes more comfortable with the notion of having cannabis delivered to their doorstep, and it understands (at least with this company) that delivery is not more expensive than going to the dispensary.

And there are obstacles to building this awareness, they said, adding that state and federal laws limit where and how such a venture can advertise its products and services. For example, cannabis companies can only advertise on vehicles that can prove that 85% of their audience is 21 or older, said Perrier. Meanwhile, because cannabis is still illegal federally, such platforms as Google, Instagram, and Facebook “won’t take our money,” he noted, adding that television stations will not take it, either. They can’t even advertise on the vehicles delivering the products — those must be unmarked for, presumably, security reasons; this is a cash-only business.

“You’re really handicapped in how you can advertise,” said Polatol, adding that the company is using some billboards and a digital campaign to draw people to the Budzee website. But that’s just half the battle. Once there, consumers need to become comfortable with the products and procedures, and place orders.

Despite these challenges, the partners believe they have the right concept at the right time, and as awareness and comfortability grow, they will achieve the volume they need to be profitable.

“Once Budzee becomes known as a household delivery option for cannabis, things will snowball and we’ll get bigger numbers,” said Polatol. “And we’re seeing that right now; the numbers are going up every week, and we’re getting a lot of regulars.

“There are some people who can’t leave their house for health reasons, and they’re ordering from us three times a week,” he went on. “They love it, and it’s rewarding for us; it’s a model that’s working.”

At present, the company is making maybe 20 to 30 deliveries a day on average, he said, with the goal being to take that number past 100. Other goals are to go statewide (more licenses will be needed for that) and then perhaps to other states, he told BusinessWest.

 

Budding Proposition

None of that will be easy, of course. But as these partners have shown, they are willing to assume challenges and clear some high hurdles to get where they want to be.

And right now, they are where they want to be — the first to be out the door (and to your door) with delivery of cannabis products.

They know that it will take some time to scale up, as Polatol noted, and reach the volume level they need to be successful, but they believe they have a model that works and a foundation to build on.

 

 

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

Special Coverage Wealth Management

It’s a Time to Stay Focused and Think Strategically

By Barbara Trombley, CPA

If you have a retirement account, as many of us do, it is hard not to follow what is going on in the financial markets today. We are officially in a bear market, defined by a drop of 20% or more in a broad market index.

The Dow Jones Industrial Average crossed into bear market territory on June 13 of this year. Unfortunately, bear markets may plummet even deeper than the 20% threshold and may do so over a prolonged period. It is a tough time to be an investor during this scenario but, eventually, the market finds a bottom and investors feel comfortable once again to begin buying, putting an end to the bear market.

Bear markets are usually the result of a recession or some other financial strain. We are not officially in a recession, but many experts think that one is coming. A recession is defined as a significant decline in economic activity that lasts for months or years. This often means that unemployment rises as companies fail or shrink to control costs. Corporate profits fall causing a decline in stock market prices.

Usually, a bear market signifies tougher economic times ahead. Unfortunately, bear markets are ‘normal’ and happen periodically. We actually experienced a short bear market at the beginning of the pandemic. Bear markets tend to be much shorter than bull markets (when stocks rise over a period of time). They also tend to be less statistically severe, with average losses of 33% compared with bull market average gains of 159%, according to data compiled by Invesco.

“It is a tough time to be an investor during this scenario but, eventually, the market finds a bottom and investors feel comfortable once again to begin buying, putting an end to the bear market.”

What should an investor do during a bear market? Risk tolerance, asset allocation and your age really come in to play right now. The percentage of equities in your portfolio should match your risk tolerance and age. For instance, if you are in your thirties and forties and are investing in your 401(k), you could be very aggressive and have a large percentage of equities.

If this is the case, then you should be thrilled to make your monthly deposit into your account. You are buying stocks ‘on sale’ and you have many years to make up any temporary losses in your account. Even if you are a few years from retirement, and depending upon you situation, a bear market could be seen as an opportunity to purchase stocks at a discount.

A prolonged bear market for someone approaching retirement or a new retiree could mean making some changes to your lifestyle. For example, you could limit withdrawals from your investment account and/or eliminate panic selling. When you withdraw money or sell in a bear market it is considered “locking in the losses.” Perhaps you can cut spending or pick up an extra job for the short term, until the economy is on more stable footing.

There are financial products available that could potentially be suitable in many portfolios. In some cases when determined appropriate, an annuity could be used to create more stable income, a REIT (Real Estate Investment Trust) could be used to help diversity a portfolio and many insurance companies offer products with downside protection. Consult your financial advisor for different ideas to help address the volatility in your portfolio.

Perspective is key to a good night’s sleep when dealing with market volatility. Downturns are a normal occurrence in the stock market. Since 1932, bear markets have occurred, on average, every 56 months (about four years and eight months), according to S&P Dow Jones Indices. Make sure to keep emergency funds in the bank to keep market withdrawals to a minimum. Do not make rash changes to your portfolio. There is a saying that ‘time in the market beats timing the market.’ It is very hard to predict the exact best day to sell a stock or to buy a stock. Missing the best days in the stock market, over time, can seriously undermine your performance. Having a plan and sticking to it could yield the best results in the long term.

If you are a new investor, you may want to proceed cautiously. One potential strategy is to dollar cost average any funds that you have into the market (spread the investment over a period of time). This way you are buying at different price points in the market. Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

No one is predicting when the market bottom will happen, and it is nearly impossible to time. I believe you should see to have a well-diversified portfolio with a mixture of asset classes, though there is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Always remember the adages “This too shall pass” and “Time is on your side.” Those people that have been investing for a while have been through many economic downturns and have survived and, most likely, thrived if they have stayed the course and stuck to their plan!

 

Barbara Tromblay is a financial advisor and CPA with Wilbraham-based Tromblay, CPA: (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. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Insurance Special Coverage

A Policy of Purpose

After a long career growing FieldEddy (later HUB International New England) into one of the region’s most notable insurance success stories, Sam Hanmer called it quits, figuring he’d enjoy an early retirement. But he didn’t, in fact, enjoy it. So, three years later, with a renewed sense of passion and purpose, he got back in the game, purchasing two local agencies, with the intention to grow them further, with an eye toward cultivating the next generation of leadership.

By Stephen Carter

If not for the pandemic, Sam Hanmer said, he might have stayed retired.

Or maybe not.

A long stretch when COVID-19 largely shut down the world certainly didn’t add to whatever enjoyment his retirement years — which began in the spring of 2018 — were bringing him, but the truth, he admitted, is that early retirement simply didn’t suit him.

“Quite honestly, I was hanging around doing nothing every day and had a lack of purpose in my life,” said Hanmer, whose more than three-decade career in insurance was highlighted by the rapid growth of FieldEddy in the early years of this century and its acquisition by Hub International in 2014. “I said, ‘OK, I have to go do something. This is crazy; I’m too young. None of my friends are retired. I’m a golfer, but not a passionate golfer.’ So retirement didn’t sit well with me.”

As noted, COVID didn’t help — Hanmer’s bulldog, Santino, was his “pandemic dog,” a companion during those isolating months — and not even the golf courses were open for a while. Simply put, he was restless.

“I figured, I’ve got plenty of earning years left, so I went back to what I know,” he said, noting that he honored his non-compete agreement with HUB before jumping back into the insurance business. After bidding on another agency and falling short, he purchased the two locations of LeBel, Lavigne & Deady Insurance (in Chicopee and Springfield) in May 2021, rebranding them as the Rush Insurance Group. Then, in November, he bought Towne Insurance Agency in Agawam, changing the name to Towne Insurance Group; it may eventually be part of the Rush name as well.

“I got back in the business,” he said. “I needed something to do, and it’s what I knew.”

Back in the 1980s, when Hanmer graduated from UMass Amherst, his father was the majority owner of a firm known then as Field, Eddy, and Bulkley, but Hanmer didn’t go to work for him right away. When he later joined the family business, he started in sales but moved to the financial side when the treasurer suffered a heart attack and had to leave the company for some time. After his father retired in 1995, Hanmer stepped into the role of CEO.

It wasn’t long before he started to capitalize on a trend within the industry — many small, mom-and-pop operations struggling to adjust to changes and technology began looking in earnest for exit strategies — to grow by acquisition.

insurance business with a new venture

Sam Hanmer tried retirement, but it didn’t suit him, so he returned to the insurance business with a new venture

Over the next two decades, the firm acquired a number of agencies, including the Curtis and Hodskins agencies in Monson, Aliengena in Palmer, LDS in Three Rivers, Meadows in East Longmeadow, Remillard in South Hadley, Buckley Bridge in Windsor Locks, and both BPI and Lawson, Marino & Bertera in Springfield.

The 160-year-old firm, later branded FieldEddy, was still growing its footprint when it became part of the HUB International family in 2014, where Hanmer remained in a leadership role for three and a half years, then retired.

For a while, anyway.

 

A Different Perspective

Looking back to his un-retirement decision early last year, Hanmer figures it was probably inevitable, pandemic or not.

“I’m very happy I made the call to do it. I’ve had people, friends in the business, say, ‘why did you get back into this business?’ But it’s a good business, it really is, and they know it.

“But after a while, it can get old,” he went on. “So for me, taking three years off and coming back was a like a recharge. I was in the business 30-something years, and after 30 years, anything can get a little tiring. You take a few years off and realize — in my case, at least — retirement wasn’t working, and you come back with a different lens because you had three years off. So I’m excited and having fun in the business — probably more fun now than I had back in the day.”

Hanmer has navigated a number of changes in the sector, including the rise of direct writers like Geico and Progressive, who poured into Massachusetts after state regulations were changed to stimulate competition. But Hanmer, like other independent agents, has always countered that evolution by emphasizing the value of relationships in his business.

“The direct writers have captured a fair amount of the Massachusetts business, and you saw a big pitch years ago about online sales from direct writers. Now you see Geico offices popping up because they finally understand it is a relationship business. Geico’s done phenomenally; they don’t have to put offices up, but they’re starting to build offices you can walk into. And Progressive probably does 80% of their business through independent agents. People don’t know that.”

The other factor that’s been affecting the insurance world over the past 20 years — and remains a factor today — is consolidation, and there’s a place, Hanmer said, for locally owned companies in that landscape.

“Consolidation has been happening in all sectors, and that’s very much the case in the insurance-agency world,” he noted. “Everything is going to the nationals, and the local insurance agencies are dwindling. But we’re still local people.”

The main challenge is one of scale, he said, noting that the size of HUB certainly helped the former FieldEddy grow its business because of the buying power of a national firm. “And they have a lot of what I would call specialty units that focus on a particular sector. It’s powerful. It served us well.

“But I still think there are a group of middle-market buyers, smaller businesses that get lost in the shuffle with the nationals, and I think there’s a big opportunity for smaller local agencies to capture that business,” he went on. “A lot of national players actually walk away from that business. And in Western Mass., that’s 90% of businesses.”

So, against the backdrop of continued consolidation and with his accumulated years of experience, Hanmer saw an opportunity to be successful.

“It certainly was a scary thought to get back in, and come up with some capital in order to get back in, knowing that things have changed in three years — although they didn’t change as much as I thought they would have.”

Elaborating, he said he discussed coming back with friends and colleagues, and they led him to believe the business had changed quite a bit, even in the three years he was away.

“And there is change in the system environment, in the software we use, some of the peripheral things, but the actual dynamics of the business didn’t change. Once I got back in, I said, ‘this is what I anticipated.’”

It’s a landscape where relationship building and the consultative approach still matter, he explained.

“That’s never gone away. I’d rather be your consultant than your salesman. If someone buys from me, great, but if they don’t, and I’ve helped them, that’s fine too, because at some point, that will come around. Maybe they’ll talk to a friend. Even if I don’t ever get their business, that approach works. It doesn’t necessarily work quickly, but this is a marathon, not a sprint.”

He paused for a moment. “Well, I’m sprinting a little bit, because there will be retirement at some point ahead of me.”

 

Leaving a Legacy

For now, though, Hanmer is focused on growing his three offices, which offer personal, commercial, and employee-benefit lines — the latter being new for both agencies.

“My makeup isn’t to sit back. I absolutely plan on growing it through organic growth and organic sales and through further acquisitions, for sure,” he told BusinessWest. But he wants to leave his enterprise in healthy shape when that second retirement does come around — and, presumably, sticks.

“I’m hoping this time around to create something where a perpetuation might be internal instead of selling it externally to a national brand. If I can get a few young guys — and women — in here who are passionate about the business and want to keep it going, I would definitely perpetuate it internally, just create a little annunity for myself, as opposed to just cashing out. That’s the plan. Plans change, but that’s the plan.”

Bringing in young professionals is a national challenge, however.

“It’s hard. This industry is struggling to attract young people who want to be in the insurance business. It’s hard to get young people energized or even want to talk to you. They’d rather be in a dot-com; they’d rather be in a startup in Boston. There’s all kinds of things they’d rather do than sell insurance.”

One reason is that insurance isn’t an instant-gratification career, he explained.

“It’s a recurring-revenue business, which means your first few years are tough because you have to build a book of business. It’s a commission-based business, so once you build your business, you can create a recurring-revenue compensation program. It can be lucrative if you stick it out, but most people won’t stick it out because the first few years are lean. If they can manage through their first few years and have thick enough skin not to worry about the public perception of insurance, it can be a very lucrative job.”

The negative perception arises, Hanmer said, because insurance is something everyone needs, but they don’t want to pay for it. “They love having it when they have a problem, but if they’ve never had a problem, they say, ‘I can’t believe I spent all this money on insurance.’”

Hanmer found he needed insurance, too — not the product, but the career. He needed it more, in fact, than putting on a green or puttering around a house, or whatever activities he and Santino — who now goes to work with his owner every day — might get up to.

In other words, Hanmer needed to feel the spark of working again, so that’s what he did. And he found that spark.

“I definitely made the right decision,” he said. “I’m really happy.”

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 119: July 4, 2022

George O’Brien talks with Hubert Benitez, the recently appointed president of American International College

Hubert Benitez

BusinessWest Editor George O’Brien talks with Hubert Benitez, the recently appointed president of American International College. The two discuss his latest assignment within academia, his goals for AIC, COVID, and the many other challenges facing colleges and universities today. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local and sponsored by PeoplesBank.

 

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