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New York AG starts $400K grant program for restoring acid-rain damaged Adirondack waterways
New York Attorney General Eric T. Schneiderman today announced the creation of a $400,000 grant program to fund projects aimed at restoring hundreds of lakes
NY manufacturing conditions continue sputtering in January
New York’s manufacturing firms said the difficult business conditions they have faced in recent months continued in January. But the picture looks brighter here in Central New York and going forward. The general business conditions index in the Empire State Manufacturing Survey from the Federal Reserve Bank of New York dropped half a point to
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New York’s manufacturing firms said the difficult business conditions they have faced in recent months continued in January. But the picture looks brighter here in Central New York and going forward.
The general business conditions index in the Empire State Manufacturing Survey from the Federal Reserve Bank of New York dropped half a point to -7.8. The report’s negative reading, which was issued Jan. 15, means more manufacturers reported declining conditions than improvement.
Although 25.9 percent of surveyed firms said conditions improved in January, they were outweighed by 33.7 percent citing declines from the previous month. The other 40.4 percent of manufacturers responding to the New York Fed’s monthly survey reported no change.
Most other current indicators languished below zero, reflecting manufacturers’ ongoing struggles. The month’s steepest drop came in the shipments index, which skidded 15 points to -3.1.
Central New York’s manufacturers aren’t quite as down on local conditions as the New York Fed’s survey would seem to indicate, according to Robert Trachtenberg, president and CEO of the Central New York Technology Development Organization, Inc. (TDO). Many of the businesses that the TDO works with are anticipating an increase in exports, he says.
“I think this survey’s a little more negative than I see,” Trachtenberg says. “I see much more positive thinking out there than the survey would indicate. I think a lot of people will look back on 2013 as being a really good year.”
In the Empire State Survey, the new-orders index slipped 3.7 points to -7.2. Manufacturers indicated they had fewer unfilled orders, reflected by the unfilled-orders index dipping 1.1 points to -7.5.
Delivery times edged down slightly, as indicated by the delivery-times index posting a reading of -2.2. That was unchanged from December.
Manufacturers continued to cut inventories, but at a slightly slower rate than in recent months. The inventories index stayed below zero at -8.6 despite rising 3.2 points in January.
Prices, meanwhile, were on the uptick. Manufacturers paid higher prices, with the prices-paid index increasing 6.5 points to 22.6. They also received higher prices for their goods, according to the prices-received index, which jumped 9.7 points to 10.8.
Employment indicators remained negative, despite manufacturers tempering their plans to reduce employment levels and trim employees’ hours. The number-of-employees index rose 5.4 points to -4.3, and the average employee-workweek index climbed 5.4 points to -5.4.
Stronger future expectations
The state’s manufacturers assembled a stronger set of hopes for the future. The Empire State Manufacturing Survey’s forward-looking indicators, which measure expectations for a time six months into the future, all avoided dipping below zero.
They did so as the future general business conditions index gained 4.5 points to 22.4. In January, 40.8 percent of manufacturers predicted better conditions in six months, compared to 18.4 percent anticipating worse conditions and 40.8 percent foreseeing no change.
New orders will jump, according to the future new-orders index. It swelled 7.9 points to 25.1. That rising tide is in line to lift shipments, if the future shipments index proves to be accurate. It moved up 1.4 points to 23.9.
The future unfilled-orders index slid 2.2 points to 1.1. The future delivery-time index didn’t change, holding steady at zero. And the future inventories index moved above zero, adding 4.3 points to notch 1.1.
“What you’re finding is that while a lot of companies are kind of coasting at the sales level they’re at right now, they’re anticipating more sales and they’re anticipating growth,” Trachtenberg says. “They’re reading about the fact that a lot of companies are starting to bring jobs that had been overseas back.”
Price increases are still on the horizon, the survey found. The future prices-paid index tallied 38.7 despite a 12.9-point decrease. On a similar note, the future prices-received index edged down 4.3 points to 21.5.
Manufacturers’ plans for increasing capital expenditures flattened. The future capital-expenditures index lost 8.6 points, moving down to 4.3. The future technology-spending index was steadier, picking up 1.1 points to 5.4.
Also flattening were employment indicators for six months from now. The future average employee-workweek index dropped 2.2 points to 3.2. The future number-of-employees index slid 3.2 points to 7.5.
“They’re looking for employees, and they just can’t seem to find the skills that match their needs,” Trachtenberg says. “That’s not only a local problem. We’re seeing that nationally.”
Survey respondents reserved more optimism for a 12-month time frame. The New York Fed sent manufacturers a series of supplemental questions in January to ask them about their staffing plans over a one-year period.
More than a quarter of respondents, 27.2 percent, said they expected to increase their number of employees, while 18.5 percent predicted staffing decreases. Those results were down from January of 2012, the last time the Fed asked this set of supplemental questions. At that time, 50.5 percent of manufacturers anticipated hiring and 8.8 percent thought they would cut staff.
The New York Fed polls a set pool of about 200 manufacturing executives in the state for its monthly survey. About 100 executives typically respond.
The Fed seasonally adjusts data, and January’s results take an annual benchmark revision into account.
Contact Seltzer at rseltzer@cnybj.com
StartFast brings on Whitman alum Blumin as entrepreneur-in-residence
SYRACUSE — Syracuse’s StartFast Venture Accelerator has a new entrepreneur-in-residence who believes the region is poised for success and more growth in the years ahead. Kyle Blumin was born and raised in Central New York and graduated from the Martin J. Whitman School of Management at Syracuse University in 1993. He’s since mentored students at
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SYRACUSE — Syracuse’s StartFast Venture Accelerator has a new entrepreneur-in-residence who believes the region is poised for success and more growth in the years ahead.
Kyle Blumin was born and raised in Central New York and graduated from the Martin J. Whitman School of Management at Syracuse University in 1993. He’s since mentored students at Whitman, worked with the Student Sandbox incubator at the Tech Garden in downtown Syracuse, and served as a mentor for StartFast last year.
Students, he says, are telling him they want to stay in the area and grow their businesses here. It’s something he says he didn’t imagine hearing while he was in college.
“These are scalable businesses,” he says. “It’s going to provide a tremendous amount of wealth over time and a bunch of jobs.”
Blumin has experience as an entrepreneur and investor.
He led the turnaround of a family-held business in the waste services industry and its successful sale to a Canadian firm. He then led U.S. mergers and acquisitions for the acquirer.
He later acquired a facility services company just entering bankruptcy, according to StartFast. The firm improved and was eventually acquired.
Blumin also started a company to deliver technology and services that identified areas for employers to minimize risk and reduce costs associated with providing health care coverage. That firm was acquired in 2010.
As entrepreneur-in-residence for StartFast, Blumin says he’s helping to recruit the teams for this year’s program. Once the program begins, he’ll continue providing mentoring and coaching.
He says he’ll also look for potential investment opportunities among the companies chosen for StartFast and could even wind up joining a management team through the program.
StartFast organizers are looking for more companies that are farther along in their development in 2013, Blumin says. He says he wants teams to focus tightly on business development once they’re here.
“We want more mature teams,” he says.
The vast majority of startups ultimately fail, Blumin notes. And while failure can spark innovation, StartFast is hoping its businesses have a strong chance to thrive.
StartFast is a private capital-backed accelerator for software, Internet, and mobile startups.
Its focus is on helping the young companies develop and validate a prototype product and secure enough funding for them to move forward with their work. The program’s first round in 2012 featured eight teams chosen from a group of more than 300 applicants.
StartFast is part of the Global Accelerator Network. The network grew from the TechStars program that began in Boulder, Colo. in 2007. TechStars has since expanded to Boston, Seattle, and New York City and includes a separate program for companies working on cloud computing and infrastructure.
The network includes 45 accelerators around the world.
Each company chosen for StartFast receives $18,000 in seed funding. StartFast investors receive a 6 percent stake in exchange. The businesses also get access to a number of in-kind contributions from national sponsors like Google and Rackspace through the Global Accelerator Network.
Teams receive regular coaching with mentors from around the country and from managing directors Chuck Stormon and Nasir Ali.
The Seed Capital Fund of CNY (SCF) is providing 40 percent of StartFast’s $2 million in funding. The rest is coming from private investors. The initial funding round will allow StartFast to run for four years.
More information is available at www.startfast.net. StartFast is accepting applications now for its summer 2013 program.
Contact Tampone at ktampone@cnybj.com
Metro Fitness expands in downtown Syracuse
SYRACUSE — A fitness club in downtown Syracuse has expanded with an eye toward the continued development in the area. Metro Fitness Club, formerly Personal Fitness, got its start in 1995 as a boutique personal-training studio. The club has since grown to a full-service executive health club. The latest expansion, which began in September, added
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SYRACUSE — A fitness club in downtown Syracuse has expanded with an eye toward the continued development in the area.
Metro Fitness Club, formerly Personal Fitness, got its start in 1995 as a boutique personal-training studio. The club has since grown to a full-service executive health club.
The latest expansion, which began in September, added 2,000 square feet to the club’s 10,000-square-foot space at Salina Place. The gym took over space that was previously occupied by the Ida Benderson Senior Center.
Metro Fitness doubled the size of its group fitness studio to 1,800 square feet. The space can now hold larger classes. The club also added a system that allows members to select video of different classes from a kiosk.
The video is then projected onto a screen inside the group studio. The studio can be divided in half when that system is in use so part of it remains open for other members.
Randy Sabourin, Metro Fitness’ owner, says the club’s younger clients have been looking for more classes and group-training offerings. It’s a trend he expects will continue with the ongoing development of new housing downtown, including the Pike Block and Merchant Commons projects.
Along with the traditional lineup of fitness classes, Metro Fitness added a program for children on Saturday mornings. Clients, Sabourin says, can now bring their children to the club for the program and get their own workout in at the same time.
The new space Metro Fitness took over also allowed for expansion of the general area of the club and new space dedicated to Pilates reformer training, Sabourin says.
In addition to the physical expansion, the club also invested in design. Sabourin says a local artist painted murals in some of the facility’s space and the renovation left some exposed brick in place to preserve its urban feel.
The club also improved its locker-room facilities and rebuilt its steam rooms as part of the renovation, Sabourin says.
Metro Fitness made an investment in a variety of new equipment as well, he adds. The entire expansion cost about $250,000 with some funding coming from Metro Fitness’ landlord, some coming from the club itself, and financing from M&T Bank.
The club recently re-signed a 10-year extension of its lease, Sabourin says. The gym is also working with the nearby Pike Block project and expects to offer special deals to residents.
Pike Block is located at the corner of Salina and Fayette streets and involves the rehabilitation of several buildings into residential and commercial space.
Metro Fitness currently has about 500 members. Much of its business comes from its continued personal-training business, Sabourin says. At the downtown club alone, he says trainers run 250 to 300 sessions a week.
The club also has a location at the CNY Medical Center near the Syracuse University campus. Metro Fitness employs about 20 people. Sabourin is the sole owner.
The latest expansion is the club’s third after it took on additional space at Salina Place in the 1990s, Sabourin says. Although the business began with an exclusive focus on personal training, members began asking if they could come in and use its facilities independently as well.
That’s when Sabourin says the club began adding more amenities and expanding its membership offerings.
Contact Tampone at ktampone@cnybj.com
Health-law symposium addresses changing landscape
DeWITT — Regulations governing the privacy and security of health information are in line for changes, attendees of a recent seminar heard. The Syracuse–based law firm Hancock Estabrook, LLP held a health-law symposium Jan. 10 at the DoubleTree by Hilton Hotel at 6301 State Route 298 in DeWitt. The symposium attracted 46 attendees who listened
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DeWITT — Regulations governing the privacy and security of health information are in line for changes, attendees of a recent seminar heard.
The Syracuse–based law firm Hancock Estabrook, LLP held a health-law symposium Jan. 10 at the DoubleTree by Hilton Hotel at 6301 State Route 298 in DeWitt. The symposium attracted 46 attendees who listened to its six speakers.
One of those speakers, Hancock Estabrook partner Laurel Baum, presented an update on the Health Insurance Portability and Accountability Act (HIPAA). She spoke as the federal government was expected to soon finalize a set of regulations known as the HIPAA Omnibus Rule.
“The Omnibus Rule contains information on privacy regulations, security regulations, enforcement changes, the breach notification which we’ve been kind of going with interim guidelines, and then also genetic information,” Baum said. “Hold on to your seats.”
The final rule will likely change the way that firms contracting with health-care organizations’ business associates are viewed, Baum said. They will probably be considered business associates as well, raising liability issues.
“If I’m a business associate of a health-care entity, and let’s say I contract with a coding expert to help with an audit, that coding expert is also going to now be a business associate,” she said. “Who’s going to now have liability directly under the law?”
Baum also discussed a pilot program for auditing organizations’ HIPAA compliance. The program, which ran from November 2011 to December 2012, saw the U.S. Department of Health & Human Services (HHS) Office for Civil Rights (OCR) conduct 115 audits.
Under the pilot program, OCR did not need to have received a complaint in order to audit an organization’s compliance with the privacy law, according to Baum.
“They found a lot of errors, a lot of room for improvement,” she said. “Now that the pilot program is done, you’re probably going to see the audits start up again at the end of this year.”
Most HIPAA breaches seem to come from theft, not employees inappropriately posting information, she continued. That makes mobile devices particularly concerning, Baum added.
On the subject of HIPAA breaches, Baum talked about a recent settlement between HHS and Hospice of Northern Idaho, which she described as a “small provider.” That group agreed to pay HHS $50,000 for violations of the HIPAA Security Rule, which sets standards for electronic health information.
“It was a laptop that was stolen,” Baum says. “There was no encryption. There was really no risk assessment done prior to this happening. There was no policy in place.
“I think what this signifies is a shift from looking only at the large breaches. This one, I think, should really drive home a point that we have to do something,” she continues.
Baum stressed large and small organizations need to work for HIPAA compliance, because mistakes happen.
“They are going to be a lot worse for your organization, though, if you don’t have really meaningful risk-assessment policies documented,” she said. “Teach your staff.”
The symposium also included a presentation by Rob Hack, executive director of HealtheConnections RHIO, Central New York’s Regional Health Information Organization. Karen Romano, director of provider-engagement services for HealtheConnections, spoke as well.
Also speaking were Hancock Estabrook partners Catherine Diviney and Marguerite Massett. Diviney discussed Accountable Care Organization laws, while Massett addressed activities at New York’s Office of the Medicaid Inspector General. And, Frances Ciardullo — an attorney at New York City–based Fager & Amsler, LLP, which has a Central New York office — gave a talk titled “Understanding Subpoenas.”
Contact Seltzer at rseltzer@cnybj.com
Goodwill Theatre names new members, officers
JOHNSON CITY — The nonprofit Goodwill Theatre Inc. of Johnson City has named William P. Fenwick and Judith D. Miller to its board of directors.
M&T Bank profit rises in fourth quarter and full year
Net income at M&T Bank Corp. (NYSE: MTB) rose to $296 million in the fourth quarter from $148 million a year earlier. Earnings per share
Rural/Metro expanding workforce in Syracuse
SYRACUSE — Rural/Metro Medical Services is adding 14 new medical-billing positions in Syracuse to support operations in Florida. The hiring will swell the ambulance company’s
Syracuse, Utica-Rome gain private sector jobs
New York added more than 34,000 private sector jobs in December as some areas of Upstate saw private sector employment jump as well, according to
Utica College cybersecurity programs get NSA approval
UTICA — Utica College announced that the National Security Agency (NSA) has approved its cybersecurity and information-assurance courses. It’s the first step toward the private
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.