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About the Judges

A panel of judges was kept quite busy over the past few weeks, reading, evaluating, and eventually scoring nearly 200 nominations for the Forty Under 40 Class of 2019.

Yes, that’s a record, and it’s a clear indication of how coveted that designation ‘BusinessWest 40 Under Forty honoree’ has become within the 413.

Who will be most recent 40 people able to add that line to their résumés? The judges are concluding their work, and the letters alerting the winners should be going out sometime this first full week in March. They will be announced in late April, and the gala is in June at the Log Cabin.

To say the judges had their hands full this year is an understatement. But it is a very capable group that includes one previous winner, representatives of a number of business sectors, and a few players within the burgeoning entrepreneurship ecosystem within the region. Here are the judges for this year’s competition:

Michael Buckmaster

Michael Buckmaster

Michael Buckmaster, vice president of Commercial Banking for Community Bank, N.A. He has more than 30 years of experience within the banking industry working for a wide range of institutions, from global market leaders in corporate and investment banking in The U.K. to U.S. regional and community banks within the areas of small-business and middle-market commercial lending. Current specialties include commercial banking loan origination and relationship management for small and medium-sized businesses, and commercial investment real-estate financing within the New England region.

He serves as board president for Hartsprings Foundation (an affiliation of Big Brothers Big Sisters of Hampden County), and as a board member for Big Brothers Big Sisters of Hampden County and for the East of the River (ERC5) Chamber of Commerce.

Kristin Leutz

Kristin Leutz

Kristin Leutz, CEO of Valley Venture Mentors (VVM), a nonprofit organization based in Springfield offering mentorship, startup accelerators, and co-working space to build the innovation economy in Western Mass., and 40 Under Forty honoree in 2010.

Previously, she was the director of Development for RefugePoint, an innovative NGO, working to help at-risk refugees by improving humanitarian systems. She also consulted with the global philanthropic membership organization Women Moving Millions, creating strategic communications to catalyze unprecedented resources for women and girls. Before that, she served as vice president for Philanthropic Services at the Community Foundation of Western Massachusetts, where she led donor services, professional advisor engagement, fundraising, and communications.

She earned a master’s degree in industrial/organizational psychology from Springfield College, a bachelor’s degree from Colgate University, and her yoga teacher certification from Kripalu.

Julie Quink

Julie Quink

Julie Quink, CPA, CFE, managing principal of the accounting firm Burkhart Pizzanelli, P.C.

A graduate of Elms College with a bachelor’s degree in accounting, Quink joined the firm in 2011. She is involved in the accounting and consulting aspect of the practice and manages engagements of various sizes and complexities. She also performs services relative to forensic and fraud-related engagements.

Quink is a member of the American Institute of Certified Public Accountants, the Mass. Society of Certified Public Accountants, and the Assoc. of Certified Fraud Examiners. She is licensed to practice in the Commonwealth of Massachusetts and is a certified fraud examiner.

Active in the community, she serves in a number of boards for the Quaboag Hills Chamber of Commerce, Baystate Wing Hospital, and Square One. She’s also a member of the School Committee of Pathfinder Regional Vocational Technical High School.

Christina Royal

Christina Royal

Christina Royal, president of Holyoke Community College. Royal is the fourth president of Holyoke Community College and the first woman to lead the school since it was founded in 1946.

She holds a Ph.D. in education from Capella University and a master’s degree in educational psychology and a bachelor’s degree in math from Marist College.

She sits on the boards of directors for the United Way of Pioneer Valley, the Mass. Technology Collaborative, and the American Assoc. of Community Colleges’ Commission on College Readiness. 

Before coming to HCC in January 2017, she served as provost and vice president of Academic Affairs at Inver Hills Community College and previously as associate vice president for E-learning and Innovation at Cuyahoga Community College in Cleveland and director of Technology-assisted Learning for the School of Graduate and Continuing Education for Marist College, her alma mater. 

Gregory Thomas

Gregory Thomas

Gregory Thomas, executive director and lecturer at the Berthiaume Center for Entrepreneurship. He works with constituents on campus and throughout the Commonwealth to develop and execute partnerships while also teaching courses in entrepreneurship and innovation.

A 1991 UMass Amherst graduate, Thomas held senior-level global roles in his more than 20 years with Corning Inc. In his last five years at Corning, he was a strategist in the Innovation Group. He is also the immediate past president of the UMass Amherst Alumni Assoc. board.

Law

Knowledge Is Power

By John S. Gannon, Esq.

John S. Gannon, Esq

John S. Gannon, Esq

As an employment attorney, my job is to help businesses comply with the myriad laws that govern the workplace. No business is immune from workplace problems, and for those who violate employment laws, hefty penalties and damages await.

In order to help businesses avoid these problems, I’ve put together a list five costly employment-practice mistakes we frequently come across, with tips for correction and prevention.

Misclassifying Employees as Exempt from Overtime

Employers are sometimes shocked when they learn that salaried employees might be entitled to overtime when they work more than 40 hours in a week. The shock quickly goes to panic when they are told the salaried non-exempt employee is due several years’ worth of unpaid overtime, and that this unpaid wage amount can be doubled and potentially tripled under state and federal wage laws.

Misclassifying employees as exempt is a common mistake. This is because many employers associate paying a salary basis with no overtime obligation. True, paying employees a salary is typically one part of the test, but there are several other factors to consider during your exemption analysis.

We recommend you work with legal counsel to audit your exempt employee classifications. While you’re at it, consider doing a pay-equity audit to help protect against equal-pay discrimination claims.

Leave-law Headaches

When an employee is out for a medical condition, there are a series of complex and challenging employment laws that need to be navigated. This includes the Americans with Disabilities Act (ADA), the federal Family Medical Leave Act (FMLA), workers’ compensation laws, the Massachusetts Earned Sick Time law, and, coming soon, the Massachusetts Paid Family and Medical Leave law.

These laws have a plethora of traps for the unwary. What do you do when an employee continually calls out in connection with a medical condition? Do your supervisors know what to do if an employee requests several weeks off for surgery? The answers are not always easy, so make sure you know how these laws interact with one another.

Outdated Handbooks and Employment Agreements

Recently, I was reviewing whether a non-compete agreement would be enforceable in court. It turned out the agreement was signed roughly 10 years ago. To make things worse, the last update to the document was pre-Y2K.

The point here is that employment agreements and handbooks should not grow cobwebs. Changes in the law require changes to these documents. For example, Massachusetts enacted significant legislation in October 2018 changing the entire landscape of non-compete law in the Commonwealth. The state also saw the Pregnant Workers Fairness Act take shape in April last year. This new law included a notice requirement that meant an update to the employee handbook was in order.

Having your employment agreements and handbook regularly reviewed by counsel is a good way to stay on top of the constant changes in the employment law world. Remember, if you have not updated these employment documents in a few years, they are probably doing more harm than good.

Failure to Eradicate Harassment at Work

Last year was dominated by headlines spotlighting sexual-harassment scandals and cover-ups. But was the #metoo movement just another fad? The answer unequivocally is ‘no.’

To prove it, late last year the Equal Employment Opportunity Commission (EEOC) published data on workplace harassment claims that revealed a 50% increase in sexual-harassment lawsuits filed by the EEOC when compared to 2017 numbers. The EEOC also recovered nearly $70 million for the victims of sexual harassment in 2018, up from $47.5 million in 2017.

You’ve heard it before, but it bears repeating: businesses need to take proactive steps to create a workplace free from harassment. This involves updating anti-harassment policies and practices, adequately training your workforce, and promptly investigating all harassment complaints.

Lack of Supervisor Training

Most of the mistakes listed above are fertile ground for supervisor slip-ups. Whether they fail to report harassment (or, worse yet, engage in harassing behavior themselves) or discipline an employee who has taken too much sick time, supervisors who don’t know any better are in a position to do considerable damage to your business.

Proper training can alleviate this risk. Plus, a supervisor who spots an issue before it spirals out of control could prevent a costly lawsuit from being filed.

John S. Gannon is an attorney with Skoler, Abbott & Presser, P.C., one of the largest law firms in New England exclusively practicing labor and employment law. He specializes in employment litigation and personnel policies and practices, wage-and-hour compliance, and non-compete and trade-secrets litigation; (413) 737-4753; [email protected]

Accounting and Tax Planning

2018 Tax Planning (in 2019)

By Brendan Healy, CPA

Brendan Healy

Even though we’re into 2019, there are still tax-saving opportunities available for the 2018 tax year.

This article summarizes a number of options that businesses and taxpayers should consider to help minimize their tax burden when they file their 2018 tax returns. As with any tax-savings strategy, you should discuss these post-2018 year-end planning techniques with your tax advisor before implementing them.

Retirement-plan Contributions

Although some retirement plans needed to have been in place before Dec. 31 to be used for the 2018 year, there are plans that could be set up in 2019, funded, and then used as deductions for the 2018 tax return.

A simplified employee pension (or SEP) IRA, for example, can be set up after year-end and funded up to the due date (including extensions) of the taxpayer’s business.

New Opportunity-zone Funds

The new tax law created a significant tax incentive to encourage capital investment in certain locations that need development. If you sell an asset with a large capital gain, you may be able to defer that gain if you essentially reinvest that gain into an “opportunity-zone fund” within six months of that sale. If done properly, you wouldn’t recognize the tax gain until the latter of when your new investment is sold or Dec. 31, 2026. You can also get up to 15% of the deferred gain forgiven entirely for holding the investment for specified time period. And if you held the investment for an additional 10 years, you’d pay no tax on subsequent capital gains.

Capital-expenditure Tax Writeoff

The new tax law allows businesses to write off (or expense) larger amounts of fixed-asset purchases. The new law not only applies to personal property (machinery, equipment, computers, office furniture, etc.) but also increases the ability to write off certain real-estate improvements. It also increases the amount of tax deduction available for business-owned automobiles. These capital-expense writeoff elections are made at the time you file the tax return.

State Tax Planning

If you ship product to different states or if you sell over the internet across the country, there may be state tax-planning strategies available for your business. Certain businesses can take advantage of apportioning their revenue across several states. And if they do not have to file tax returns in those states, that apportioned revenue may never be subject to state income tax.

There have been significant changes this past year in the way states are allowed to (or not allowed to) tax out-of-state shipments entering their state. You should review your state income tax plan as well as your state sales tax reporting process in light of these new and significant changes.

Tax Credits

The tax law provides certain incentives to businesses by offering tax credits. The research and experimentation tax credit, for example, allows a business to convert a dollar of deduction into a dollar of tax credit. Since tax credits reduce taxes on a dollar-for-dollar basis, a tax credit is more valuable to the business than a tax deduction. So if the business is allowed to convert an expenditure into a credit, the tax savings could be substantial.

Many businesses (such as manufacturers or software companies) are not taking advantage of this tax credit that may be available to them.

Estate Planning and Gifts During Lifetime

The new tax law significantly increases the ability for families to transfer wealth upon death as well as allowing gifts during lifetime on a tax-free basis. Although estate and gift planning can get very complicated, the limits available today (which will expire in about seven years) are substantially higher than they have been in the past and allow for great flexibility in wealth-transfer planning.

Bottom Line

Just because 2018 is over does not mean we should stop thinking about tax-planning strategies for 2018 tax returns that will be filed over the next several months.

There are many tax incentives written into the tax law to encourage business and individual taxpayers to reinvest. It is up to you to make sure you are taking advantage of every one available to you and your business.

Brenden Healy, CPA, a partner at Whittlesey, is an expert in state and federal tax matters who consults with businesses and individuals and focuses his practice on closely held businesses in the real-estate, manufacturing and distribution, and retail industries.

Construction

National Outlook

According to the 2019 Dodge Construction Outlook released by Dodge Data & Analytics, a leader in construction-industry forecasting and business planning, total U.S. construction starts for 2019 will be $808 billion, staying essentially even with the $807 billion recorded in 2018.

“Over the past three years, the expansion for the U.S. construction industry has shown deceleration in its rate of growth, a pattern that typically takes place as an expansion matures,” said Robert Murray, chief economist for Dodge Data & Analytics. “After advancing 11% to 14% each year from 2012 through 2015, total construction starts climbed 7% in both 2016 and 2017, and a 3% increase is estimated for 2018. There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still-healthy market fundamentals for commercial real estate, and greater state financing for school construction and enhanced federal funding for public works.”

One important question going into 2019 is whether deceleration is followed by a period of high-level stability or a period of decline, he noted. For 2019, it’s expected that growth for the U.S. economy won’t be quite as strong as what happened in 2018, as the benefits of tax cuts begin to wane. Short-term interest rates will rise, as the Federal Reserve continues to move monetary policy towards a more neutral stance. Long-term interest rates will also rise, reflecting higher inflationary expectations by the financial markets. At the same time, any erosion in market fundamentals for commercial real estate will stay modest. In addition, the greater funding from state and local bond measures passed in recent years will still be present, and it’s likely that federal spending for construction programs will increase.

“In this environment, it’s forecast that growth for construction starts will decelerate further, but not yet make the transition to the point where the overall volume of activity declines” Murray noted. “For 2019, total construction starts are forecast to hold basically steady at $808 billion. By major sector in dollar terms, residential building will be down 2%, non-residential building will match its 2018 amount, and non-building construction will increase 3%.”

The pattern of construction starts by more specific segments includes the following:

• Single-family housing will be unchanged in dollar terms, alongside a modest 3% drop in housing starts to 815,000. There will be a slight decline in homebuyer demand as the result of higher mortgage rates, diminished affordability, and reduced tax advantages for home ownership as the result of tax reform.

• Multi-family housing will slide 6% in dollars and 8% in units to 465,000. Market fundamentals such as occupancies and rent growth had shown modest erosion prior to 2018, which then paused in 2018 due to the stronger U.S. economy. However, that erosion in market fundamentals is expected to resume in 2019.

• Commercial building will retreat 3%, following 2% gains in 2017 and 2018, as well as the substantial percentage increases that took place earlier. While 2018 market fundamentals for offices and warehouses were healthy, this year, vacancy rates are expected to rise as the economy slows, slightly dampening construction. Hotel construction will ease back from recent strength, and store construction will experience further weakness.

“There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still-healthy market fundamentals for commercial real estate, and greater state financing for school construction and enhanced federal funding for public works.”

• Institutional building will advance 3%, picking up the pace slightly from its 1% gain in 2018, which itself followed an 18% hike in 2017. Educational facilities should see continued growth in 2019, supported by funding coming from numerous school-construction bond measures. Healthcare projects will make a partial rebound after pulling back in 2018. Airport terminal and amusement-related projects are expected to stay close to the elevated levels of construction starts reported in 2017 and 2018.

• Manufacturing plant construction will rise 2% following a 18% jump in 2018. The recent pickup in petrochemical plant projects should continue, and cuts in the corporate tax rate from tax reform should encourage firms to invest more in new plant capacity.

• Public-works construction will increase 4%, reflecting growth by most of the project types. The omnibus federal appropriations bill passed last March provided greater funding for transportation projects that will carry over into 2019, and environmental-related projects are getting a lift from recently passed legislation.

• Electric utilities and gas plants will drop 3%, continuing to retreat after the exceptional amount reported back in 2015. New generating capacity continues to come online, dampening capacity utilization rates for power generation.

Dodge Data & Analytics is North America’s leading provider of analytics and software-based workflow-integration solutions for the construction industry. 

Opinion

Editorial

Back nearly a quarter-century ago, BusinessWest launched a new recognition program — the first of what would become many: its Top Entrepreneur Award.

And that name pretty much says it all. It’s an award recognizing entrepreneurial spirit — the kind that made this region what it is today, business-wise. The kind possessed by people like Milton Bradley, Horace Smith and Daniel Wesson, Mike Kittredge of Yankee Candle, and Prestley and Curtis Blake, who were just 20 and 18, respectively, when they launched Friendly Ice Cream in 1935.

That kind of entrepreneurial spirit lives on today, and it needs to be recognized, because it is that spirit, as much as any effort to lure casinos or subway-car-building companies to the region, that is responsible for the economic vitality we enjoy in this region.

Indeed, BusinessWest now has a number of recognition programs, including the wildly popular 40 Under Forty competition and the Continued Excellence Award that emerged from it, Difference Makers, Healthcare Heroes, and Women of Impact. But the Top Entrepreneur Award may in some ways be the most significant in terms of its ability to recognize excellence and inspire others.

And entrepreneurship is inspiring, because it comes in many forms. There’s the more traditional variety — generally in the form of bringing new products and services to the market. And BusinessWest has recognized individuals who have done that over the years, such as Paul Kozub, creater of V-One Vodka. There are also serial entrepreneurs, like Peter Rosskothen, owner of the Log Cabin and several other businesses, and Bob Bolduc, founder of Pride, who continues to find new ways to expand and improve upon that brand.

There are generations of the same family who have taken an enterprise well beyond its original roots — the Balise family (auto dealerships) the Falcone family (Rocky’s Hardware), and the D’Amour family (Big Y) have been so honored.

And then, there are individuals and groups who would be considered non-traditional and honored because of the manner in which they have brought entrepreneurial thinking to an organization. There have been several winners in this category as well, ranging from former STCC President Andrew Scibelli to former Cooley Dickinson Hospital CEO Craig Melin, to last year’s honorees — the owners and managers of the Springfield Thunderbirds.

Actually, those who have resurrected hockey in Springfield fit into several of those categories, because they’re introducing new products and inspiring an organization to become entrepreneurial in everything it does.

And the same can be said for the Top Entrepreneurs for 2018, the Antonacci family. Indeed, its work also falls into several categories, of you will, especially that of the serial entrepreneur. The various generations have created everything from a waste-hauling operation to a horse-breeding and racing farm; from a family-entertainment complex to a high-end country club. But they have also worked continuously to find new and imaginative ways to expand those ventures and make them even more successful.

Younger generations of the family talked about their grandfather (Sonny Antonacci) as a visionary who could see opportunities where others didn’t — like bottled water during the 1970s, even though he didn’t actually get into that industry. But they possess the same trait themselves as they take GreatHorse, Sonny’s Place, Lindy’s Farm, and especially USA Waste & Recycling to new heights.

The Top Entrepreneur Award was created to recognize entrepreneurship, showcase the many forms it takes, and inspire those looking to follow in the footsteps of some of those now-famous names mentioned earlier.

In all those respects, the many members of the Antonacci family are certainly worthy recipients.

Difference Makers

Celebrate with Us!

2019 Difference Makers
Thursday, March 28, 2019
5 p.m.-8:30 p.m.
The Log Cabin, Holyoke

This program, initiated in 2009, is a celebration of individuals, groups, organizations, and families that are positively impacting the Pioneer Valley and are, as the name suggests, making a difference in this region. As previous classes have shown, there are many ways to do this: through work within the community on one or many initiatives to improve quality of life; through success in business, public service, or education; through contributions that inspire others to get involved; through imaginative efforts to help solve one or more societal issues; or through a combination of the above.

Our 2019 Difference Makers will be announced in the Feb. 4, 2019 issue of BusinessWest

Tickets are $75 per person/$750 for a table of 10.

Purchase Tickets Below:

Difference Makers Event Tickets

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Sponsored by

40 Under 40

40under40SMALLBusinessWest is now accepting nominations for the 40 Under Forty Class of 2019, a celebration of young business and civic leaders in the Western Mass., and an undertaking in which our readership will play a pivotal role. Indeed, the process of selecting this region’s 40 Under Forty begins with nominations. And we urge you be thorough, because 40 Under Forty is a nomination-driven process; the background material submitted on a given individual is the primary source of information to be weighed by the judges who will score the candidates.

Please take a few minutes and help us identify the region’s 40 Under Forty. For more information about 40 under Forty >>Go Here

Save the Date

The selected individuals will be profiled in the April 15th edition of BusinessWest and celebrated at the annual 40 Under Forty Gala on June 20, 2019.
For more information call (413) 781-8600

About the nomination form:

• Candidates should have achieved professional success and actively volunteer for civic and/or non-profit organizations.
• Only nominations submitted to BusinessWest on
this form will be considered.
• Fill out the nomination form completely.
• Photocopies are acceptable.
• Supporting information (i.e. résumé) may be sent to [email protected] Please include nominee’s name in subject line.
Deadline is February 15, 2019. No exceptions.
• Nominees must be under 40 as of April 1, 2019

Fill out the nomination form completely.
  • As of March 1
  • (job responsibilities, special projects, business-related affiliations)
  • (board involvement in community, state, or national organization, including trade associations)
  • (spouse, children if applicable)
  • Nominated by (your information):