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Binghamton consumer confidence dips slightly in Q2
Binghamton consumers continued to resist opening their wallets in the second quarter of 2012, according to an index from the Siena (College) Research Institute (SRI)
Youth golf event should bring boost to area
BINGHAMTON — From hotel guests to diners, the upcoming USGLL (U.S. Golf Local League) National Championship should benefit area businesses and the local economy, organizers
Excellus commits $90,000 to A.V.R.E. program over 3 years
BINGHAMTON — A new partnership between the Association for Vision Rehabilitation and Employment, Inc. (A.V.R.E.) and Excellus BlueCross BlueShield is about more than just funding.
Endicott Interconnect lays off undisclosed number of workers
ENDICOTT — Endicott Interconnect Technologies, Inc. recently laid off an undisclosed number of employees at its headquarters manufacturing plant. The electronic-packaging business did not issue
Former O’Brien & Gere CEO takes over at Falcone Center
SYRACUSE — Working on a college campus has been a longtime ambition for Terry Brown, the new executive director at the Syracuse University (SU) Falcone Center for Entrepreneurship. While he was CEO of the engineering firm O’Brien & Gere, Brown says he developed close relationships with a number of university leaders in the region. And,
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SYRACUSE — Working on a college campus has been a longtime ambition for Terry Brown, the new executive director at the Syracuse University (SU) Falcone Center for Entrepreneurship.
While he was CEO of the engineering firm O’Brien & Gere, Brown says he developed close relationships with a number of university leaders in the region. And, he says he has maintained close ties to his alma mater, Clarkson University in Potsdam, where he earned a bachelor’s degree in civil and environmental engineering.
The ties have shown him firsthand the economic value of the Central New York region’s educational institutions.
“As a region, we have just a tremendous asset in the college students that come here,” he says. “How do we retain them and that talent to help drive our economy?”
The Falcone Center is an ideal place to help answer that question, Brown says. The center is the outreach arm of the Department of Entrepreneurship and Emerging Enterprises at SU’s Martin J. Whitman School of Management.
It aims to foster entrepreneurial activity on campus, and in the local and regional community.
Brown will oversee and develop the Falcone Center’s strategic plan, manage its budget and development initiatives, advise student entrepreneurs, and work to strategically develop the entrepreneurial community both on and off campus, according to SU.
Brown started his new position in May. He was with O’Brien & Gere from 1975 to 2011 and held various senior-level positions in addition to chairman, president, and CEO. He was most recently president and CEO at Warner Energy Solutions, LLC, a startup focused on renewable energy and environmental projects.
At the Falcone Center, Brown succeeds Thomas Kruczek, who is now dean of the College of Business and Management at Lynn University in Boca Raton, Fla.
Connecting the community and the university around entrepreneurial activity is a focus for the Falcone Center, Brown notes. That means getting students into internships and working on projects for local companies, but also bringing businesses to campus to take advantage of SU’s resources.
Brown says his motives are at least partially personal. He wants his children and grandchildren to see the same opportunities in the Central New York region that he did while growing up here.
“If we’re going to retain our talent and have opportunities for our children and grandchildren, we have to create a robust economy,” he says. “Syracuse has a lot to offer.”
Efforts like the Syracuse Technology Garden, SU’s Student Sandbox business startup program, the Syracuse Center of Excellence, and the Central New York Biotech Accelerator can make big contributions in the years ahead, Brown adds.
“There’s a lot of entrepreneurship programs going on,” he says. “They all have to be linked together. We all have to be talking as one.”
Already, Brown says he’s been impressed by the passion and enthusiasm of students for entrepreneurship. Even though it’s summer, he says he’s already been approached by a handful of students with ideas and well-written business plans.
He hopes to use his connections in the business community to find solid mentors for any students with ambitions to start companies. The Falcone Center, Brown says, can help ensure that the ideas are relevant to the marketplace and have a reasonable chance of succeeding.
“I think that’s a huge thing we can bring to the students,” he says.
Bauer plans expanded Clay production for Cascade
CLAY — Bauer Performance Sports Ltd. (TSX: BAU) will take a shot at expanding manufacturing in the Syracuse area after completing a lacrosse power play and acquiring a Clay–based helmet maker. Exeter, N.H.–based Bauer paid $64 million for Cascade Helmets Holdings, Inc. in a deal that closed June 29. The transaction allows Bauer to jump
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CLAY — Bauer Performance Sports Ltd. (TSX: BAU) will take a shot at expanding manufacturing in the Syracuse area after completing a lacrosse power play and acquiring a Clay–based helmet maker.
Exeter, N.H.–based Bauer paid $64 million for Cascade Helmets Holdings, Inc. in a deal that closed June 29. The transaction allows Bauer to jump head long into lacrosse helmet sales, a category in which it did not previously participate.
Bauer produces ice hockey, roller hockey, and lacrosse equipment and apparel. Cascade makes women’s lacrosse eyewear, field hockey eyewear, whitewater helmets, rescue helmets, and hockey helmets, in addition to lacrosse helmets.
“Cascade has a fantastic brand in lacrosse, has a dominant market share in the helmet category,” says Kevin Davis, president and CEO of Bauer Performance Sports Ltd. “And they have great technology, both for lacrosse and hockey helmets, in addition to a remarkable manufacturing operation where they can turn around custom lacrosse helmets in 48 hours.”
Bauer plans to keep Cascade’s manufacturing operation at the acquired firm’s current headquarters at 4697 Crossroads Park Drive in Clay, Davis says. Cascade leases 72,000 square feet and employs between 60 and 70 people there. It leases the facility from U.R. Best Resort, Inc., according to records from Onondaga County’s Office of Real Property Tax Services.
Cascade is currently recruiting for open positions in Clay, according to Davis, who declined to say how many staff positions are available. In addition to lacrosse helmets, Cascade produces a line of hockey helmets it developed with former National Hockey League player Mark Messier.
Bauer plans to start producing Bauer-branded hockey helmets in Clay. Other manufacturing expansions are in store for the location, Davis says.
“There’s nothing else that I want to mention, but I would by no means limit it to helmets,” he says.
Cascade’s Clay facility is the second manufacturing location for Bauer. The New Hampshire–based company also makes equipment at a facility in Saint-Jérôme, Quebec, which is northeast of Montreal. Before acquiring Cascade, Bauer had about 400 employees.
Bauer financed the Cascade deal, which was a stock sale, using a syndicate of lenders led by GE Capital, according to Davis. It also sold some public shares, he adds.
The company did not use a broker in the deal. It enlisted the international audit, tax, and advisory firm KPMG LLP for accounting, Davis says.
Cascade had been owned by North Castle Partners, a private-equity firm based in Greenwich, Conn. North Castle, which first acquired a controlling interest in Cascade in December 2007, doubled the manufacturer’s sales during its ownership, it said in a news release.
“We believe North Castle’s experience in sports, fitness, and recreation, in partnership with Cascade’s exceptional leadership team, has created a company that is well-positioned to capitalize on the wide range of opportunities the company will have as part of Bauer Performance Sports,” North Castle Managing Director Alison Minter said in the release. She did not respond to a request for further comment by The Central New York Business Journal’s press deadline.
Cascade generated $22 million in revenue in 2011, Davis says. He declined to disclose projections for 2012.
Bauer produced $306.1 million in revenue in its 2011 fiscal year, which ended May 31, 2011. That was up 18.9 percent from the 2010 fiscal year, when the company generated $257.4 million.
Davis says the company’s revenue totaled $362 million in its most recent 12-month accounting period, which ended in February 2012. He cannot share Bauer’s future sales projections, he adds.
The manufacturer is not making any changes to Cascade’s leadership at its Clay facility, Davis says.
“The folks that were running that facility and are managing that company on a day-to-day basis are all continuing with the company,” he says. “What we have talked about to the folks in [Clay] is that the idea is to grow, expand, and leverage that facility for all the great work that they’ve already done.”
PLS grows revenue by narrowing its focus
BALDWINSVILLE — Produc-tivity Leadership Systems, LLC (PLS), a leadership training and coaching firm, has more than doubled its revenue in the past six years by sharpening its focus. Back in 2006, the firm was expanding its services to new markets, including Buffalo, Albany, and Philadelphia. A new focus on Central New York has allowed PLS
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BALDWINSVILLE — Produc-tivity Leadership Systems, LLC (PLS), a leadership training and coaching firm, has more than doubled its revenue in the past six years by sharpening its focus.
Back in 2006, the firm was expanding its services to new markets, including Buffalo, Albany, and Philadelphia. A new focus on Central New York has allowed PLS to grow, Ralph Simone, company president, says.
The firm’s revenue is now “well into the seven figures,” he says. PLS works with 16 different organizations coaching and training 300 people.
Simone says the narrower focus on the local market emerged from a desire to take part in the region’s revitalization. Good clients are also abundant in the area, he notes.
“It’s exciting,” Simone says of the focus on Central New York. “It seems to be paying off.”
PLS has also concentrated on building its own employee base in the past few years. The firm employs six people now, including three partners, up from three total employees in 2006 at its offices located at 410 Oswego St., Suite 130.
With more employees of its own, the firm uses fewer contractors than it has in the past, Simone says. PLS still works with some long-term contractors for certain projects, but its own staff members are now providing more of its training.
“That seems to have strengthened our brand and our ability to help transform and develop leadership within organizations,” Simone says.
PLS’ growth has also been aided by some new programs. The company designed and implemented a yearlong leadership development program known as LeadForward, which is aimed at senior- level leaders.
Simone says the program takes a holistic approach.
“We’re looking at the whole person in this process,” he says.
The company has also spun off a new firm that is set to formally launch in 2013. LIIO (Leadership Integrated Intelligence Online) is now a tenant of the Tech Garden in downtown Syracuse.
The company is run by a current PLS employee, who will probably transition to working on LIIO full time by the end of 2012, Simone says. LIIO is an online service that provides leadership coaching support.
It’s initially targeted at colleges and universities to help students with tasks like goal setting, taking the right steps to get internships, and simply finding their passions, Simone says. The service could apply in many sectors though, he adds.
The company grew from PLS’ ongoing work with colleges and universities in the region, Simone says. Other clients in the area include defense contractor SRC and its manufacturing subsidiary SRCTec, computer manufacturer Seneca Data, and Carrier.
A traditional strength for PLS has been the technology sector, Simone notes. As employees with technical backgrounds get moved into leadership positions, they often need help developing new skills and dealing with the emotional aspects of their new jobs.
But the firm has seen that trend in many industries, Simone says, and its client base has broadened as a result.
PLS was previously known as Simone & Associates, which Simone founded in 1999. He started his first training and coaching company in 1991.
Prior to running his own business, Simone worked for companies including Carrier and Coopers & Lybrand in management development. He is a graduate of Siena College, located near Albany.
Contact Tampone at
ktampone@cnybj.com
Small-business owners slash optimism in June
Small-business owners’ plans to hire dried up in June, helping to cause a monthly optimism index to sag to its lowest level since October 2011. The Small Business Optimism Index, measured by the National Federation of Independent Business (NFIB), slipped 3 points to 91.4 in June. It hit its lowest point since registering 90.2 last
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Small-business owners’ plans to hire dried up in June, helping to cause a monthly optimism index to sag to its lowest level since October 2011.
The Small Business Optimism Index, measured by the National Federation of Independent Business (NFIB), slipped 3 points to 91.4 in June. It hit its lowest point since registering 90.2 last October.
In June, business owners cut plans to hire in the next three months. Seasonally adjusted, a net 3 percent of owners anticipated increasing hiring in that time period. That’s down 3 points from May, when a net 6 percent planned to hire over a three-month period.
New York director’s comments
Small-business owners appear to be losing patience waiting for government measures to improve economic activity, according to NFIB New York State Director Mike Durant. The national optimism-index results and his anecdotal experience bear that out, he says.
“I think what we’re seeing here is sort of a delayed response to the lack of significant action both in Washington and, frankly, in the last few months here in New York for business,” he says.
June’s optimism index does not reflect small-business owners’ reactions to the U.S. Supreme Court ruling that upheld key portions of the federal health-care reform law, according to the NFIB. The court issued its ruling June 28, but ramifications on business owners’ outlooks will not be felt until the NFIB’s July index.
However, Durant has been hearing reactions from some of the organization’s New York members, he says.
“They’re always skeptical of the legislation,” he said. “They do not believe this bill will do what proponents say in driving down their health-care costs. So it’s really going to be a problem.”
The NFIB is one of the parties that sued the federal government over the health-care reform law.
Other survey findings
Hiring plans weren’t the only component of the Small Business Optimism Index to decline in June, as eight of 10 components fell. Just one indicator increased, while another was unchanged from May.
The only increasing component was expected credit conditions in the next three months. It improved 2 points to a net -8 percent of regular borrowers who anticipated easier credit conditions.
The net negative result means more survey respondents still predicted tighter credit conditions than easier conditions. That’s because the NFIB calculates net percentages by subtracting pessimistic survey answers from optimistic replies. A positive net percentage indicates more optimistic business owners, while negative percentages reflect prevalent pessimism.
Satisfaction with current inventory levels did not change in June. A net 0 percent of business owners indicated their inventories were too large, seasonally adjusted. Current-inventory satisfaction has not changed since April, according to the NFIB survey.
The remaining optimism-index components fell by varying degrees. Business owners’ outlook for general business conditions dropped the most, plummeting eight points. A net -10 percent of business owners expect better business conditions in six months, seasonally adjusted.
Earnings also declined sharply, skidding 7 points in June. A seasonally adjusted net -22 percent of business owners reported higher earnings in the last three months when compared to the prior three months.
Owners dropped plans to make capital expenditures. A seasonally adjusted 21 percent of small-business owners said they planned to make capital expenditures in three to six months, a dip of 3 points from May.
Inventories will not be changing in the next three to six months, according to the NFIB survey. Seasonally adjusted, a net 0 percent of small-business owners said in June that they plan to increase inventories, a decrease of 2 points from the previous month.
Expectations for sales dipped into negative territory with a 5-point tumble in June. Seasonally adjusted, a net -3 percent of business owners said they expect higher real sales in the next three months.
Business owners reported a lower number of job openings they were unable to fill in June. Seasonally adjusted, 15 percent of survey respondents said they had positions they could not fill, down five points from last month.
And fewer business owners in June judged the next three months as a good time to expand. Just 5 percent said the next three months would be good for expansion, seasonally adjusted — a drop of 2 points from May.
“There’s really not a lot of optimism. What we saw was a major decline in expectations for sales and for the state of the economy six months out,” William Dunkelberg, the NFIB’s chief economist, said in a July 10 interview on CNBC. “And of course, if you don’t think things are going to be very good, then you see hiring plans fall, you see capital spending down, you see inventory investment fall to nothing, and that’s not good.”
A plurality of business owners cited poor sales as their single most important problem. In June, 23 percent of business owners named sales as their top problem, followed by taxes, which were mentioned by 21 percent, and government regulations and red tape, which were cited by 19 percent.
The NFIB is a nonprofit organization that represents members in 50 states and Washington, D.C. It randomly surveyed 740 of its member businesses in the month of June to develop the optimism index.
Guardian plant in Geneva succeeds despite recession
GENEVA — Guardian Industries’ glass plant in Geneva is sensitive to swings in the housing market, so to survive the past five years without a single layoff is a point of pride, says Joel Daoust, plant manager. The facility produces glass used mainly as windows in commercial and residential buildings. “This group up here has done
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GENEVA — Guardian Industries’ glass plant in Geneva is sensitive to swings in the housing market, so to survive the past five years without a single layoff is a point of pride, says Joel Daoust, plant manager.
The facility produces glass used mainly as windows in commercial and residential buildings.
“This group up here has done a good job adapting to different manufacturing principles,” Daoust says. “We haven’t had one layoff in this plant’s history. That’s something we’re very proud of.”
The plant has employed lean-manufacturing techniques to help cut costs during the economic downturn. Daoust says employees have been open to more flexible scheduling and other moves to help the facility save money.
The site is well positioned for growth as the economy recovers, he adds.
The plant first came online in 1998, expanding Auburn Hills, Mich.–based Guardian into the Northeast. Having a plant in the region allowed the company to boost its market share in the Northeast, Daoust notes.
Guardian employs 300 people at the 800,000-square-foot plant, located at 50 Forge Ave. That’s up 20 percent from when the site opened.
The plant includes a “floater” that measures more than the length of a football field and is used in manufacturing the glass. The process begins when a mixture of powdered, dry ingredients is added to a massive, 710-ton furnace that heats the materials to 3,000 degrees and melts them into molten glass.
The liquid is then poured into the floater over a bed of liquid tin. Because of the substances’ differing viscosities, the glass “floats” atop the tin, Daoust explains.
Workers can then control the thickness and size of the glass sheets by controlling how it is stretched across the floater.
The plant also includes warehouse space and in 2002, Guardian added equipment that can lend specialized coatings to its glass products. The move was made in response to the changing market for glass, Daoust says.
Customers now are looking for value-added products, he notes. The coatings allow buildings to meet demanding new energy-efficiency standards and gain valuable points in programs like Energy Star.
The coating equipment has also allowed the Geneva plant to produce glass used for shower doors, according to Guardian. The coating in that case makes the glass easier to clean.
Glass like that produced in Geneva is rapidly becoming a commodity product so manufacturers must seek ways to help themselves stand out from the pack, Daoust says. The future of the plant will be focused on working with Guardian research and development to develop new coatings that can help the company get its products into even more markets.
“The more we do that, the more we can differentiate ourselves,” Daoust says.
Guardian Industries, which is privately held, employs 18,000 people in 25 countries. In addition to glass like it produces in Geneva, the company manufactures fabricated glass products, fiberglass insulation, and other building materials for commercial, residential and automotive applications.
Guardian was founded in Detroit in 1932.
Transonic Systems completes expansion project
LANSING — Transonic Systems held a grand opening for its 30,000-square-foot expansion on July 9. The company broke ground on the addition to its world headquarters and manufacturing facility in March 2011. The expansion, which houses manufacturing operations, doubled the size of Transonic’s existing space. Transonic Systems manufactures flow-measurement devices with applications in medicine and
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LANSING — Transonic Systems held a grand opening for its 30,000-square-foot expansion on July 9.
The company broke ground on the addition to its world headquarters and manufacturing facility in March 2011. The expansion, which houses manufacturing operations, doubled the size of Transonic’s existing space.
Transonic Systems manufactures flow-measurement devices with applications in medicine and research. The company’s products are used in everything from heart surgery to dialysis and in research labs around the world.
The company’s facility in Lansing houses manufacturing, sales, engineering, and everything else. The firm ran out of room for additional manufacturing or expansion in the old building, so began planning for the addition.
Other operations remain in Transonic’s pre-existing building. The company employs 130 people.
As of 2011, Transonic Systems had been growing at a pace of 6 percent to 10 percent a year for the past 14 years, company leaders say. The firm’s annual sales expanded in that period from $7 million to $20 million.
Its sales have been boosted by an expanding worldwide presence. The company’s international divisions all opened in the past five years with Japan launching in 2006 and Taiwan in 2007. Transonic expanded into the Netherlands last year.
In addition, Transonic’s holding company, Measurement Innovation Corp. (MIC) closed an acquisition of Scisense, Inc. of London, Ontario in July 2011. Scisense produces advanced products for assessing cardiac-pressure volume and blood pressure.
The deal allowed the companies to offer complete cardiovascular solutions by providing products to measure blood flow and pressure, according to the firms.
Transonic CEO and Chief Technology Officer Cornelis Drost founded the company in 1983. It’s based on work he was involved with originally at Cornell University. Drost was the main researcher on a project at Cornell to adapt what became some of Transonic’s core technology for medical use.
Tompkins County Area Development (TCAD) facilitated the Transonic expansion project with the town of Lansing, the village of Lansing, businesses in the Warren Road Business & Technology Park, Tompkins County Planning, and Cornell University Real Estate. It took more than three years of effort to launch the expansion.
Empire State Development awarded a $400,000 grant to construct a new municipal sewer line along Warren Road that made the project possible. The line serves seven businesses in the area that employ more than 300 people.
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