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The Valley’s Business Matters www.BusinessJournalDaily.

ISSN 1047-8582 Vol. 26 No. 16 MARCH 2010 $2.50

Strike Gold in
Marcellus Shale
Key to tapping gas reserve is
technology that enables cost-
effective horizontal drilling.
By Dan O’Brien

very industry loves a patient investor. But
400 million years is a l-o-n-g time to wait for
a return.
The rock formation known as the Marcellus Shale
– a comparatively thin layer of sediment formed and
compressed during the Devonian Period and buried
deep beneath eastern Ohio, western and central
Pennsylvania and southwestern New York – is today
yielding riches for energy companies, suppliers,
landowners and auxiliary businesses throughout
the region.
It’s because the shale contains what specialists are
calling one of the largest, most significant reposito-
ries of natural gas in the United States – a mother
lode with enough gas to supply the energy needs of
Tom Bailey and Hogan Petrick work at Dearing Compressor, which is expanding to capitalize on the Marcellus Shale gas field. See MARCELLUS SHALE, page 44

$64 Million, $650 Million;

Big, Even Bigger Projects
By George Nelson business retention and expansion at

W hen an economic
development effort is so
big that it all but eclipses
a $64 million project, that’s not a bad
situation to have.
the Youngstown/Warren Regional
That “significant investment,”
though, has been “somewhat eclipsed,”
he acknowledges, by speculation over
In any other year, Patriot Special the past several months on whether
Metals Inc.’s plans to build a 210,000- V&M Star Steel would move forward
square-foot plant – a project that could on its own project. On Feb. 15, the
be the first phase of the company’s company confirmed plans to build a
long-term expansion plan – “would $650 million rolling mill near its plant
have been the shining star of what in Brier Hill.
we’ve done,” muses Walter Good, vice “These are two big projects the
president of economic development, See BIG PROJECTS, page 10

Walt Good and Eric Planey share development leadership roles at the Regional Chamber.
2 MARCH 2010 The Business Journal
The Business Journal MARCH 2010 3


11 Made in the Valley at Chieffo’s

At Frattarolli’s Sparkle Market in
Struthers, Jerry Caruso, produce manager,
and Tony Frattarolli say Chieffo’s frozen
pasta is a top seller. Reporter Maraline
Kubik takes readers to Chieffo’s in this

Hold the Phone! No, Turn Off Ringer!

edition’s “Made in the Valley” feature.

Cell phone etiquette is evolving. who finds many professionals leave their phones on
during lunches and presentations.
By Jeremy Lydic “With the way students are today, they are perma-
nently attached, as many professionals are, to their

ith voice mail, e-mail, texting and the devices,” Dennison says. “We find that they cannot
Internet – not to mention the many seem to shut those off.”
“apps” – all accessible in one mobile Aside from being rude, focusing on a cell phone
communications device, many professionals can’t when your attention should be elsewhere hinders
imagine life without their cell phones. And while development of communication skills because eye
21 Manufacturers Must Diversify they all agree on the convenience, they have different contact is inhibited, Dennison says. Missing verbal
YSU’s Micheal Hripko and MAGNET’s ideas on what is considered professional use. cues, such as a look or a nod of the head, could cause
Ken Walter participated in a seminar Feb. One would think the basics go without saying, a listener to miss out on the message, she says.
25 that outlined how manufacturers can but even the most rudimentary elements of cellular Despite their convenience, relying on mobile
identify their core strengths, develop new phone etiquette are often forgotten, says Chris Den- devices can also encourage laziness in communicat-
products, modify existing ones, and iden- nison, an instructor of marketing at Youngstown ing, Dennison says. She finds students will use their
tify and enter new markets. State University. Dennison, who teaches a class on cell phones to e-mail her a question, only to find
business professionalism, says texting and leaving minutes after she responds that the same student
a phone’s ringer active during classes and meetings has left five more in her inbox. Rather than compose
are not only inappropriate but prohibited. Regard- a comprehensive e-mail, “some would prefer to do
less, some students (and faculty) haven’t gotten the texting,” which results in misspelled words and an
message. inbox full of messages, she says.
Students aren’t the only violators, says Dennison, See HOLD THE PHONE! page 4

33 Commercial Lending Roundtable

Four of the Mahoning Valley’s top commer-
cial lenders participate in a discussion of
the dilemna they face. Congress wants
banks to loan more money to business
but regulatory agencies are enforcing
stricter capital requirements.

15 Lou Zona 24 WIre Service

18 Interest Rates 47 BBB Report

23 Media Scope 51 For the Record

4 MARCH 2010 The Business Journal

Hold the Phone! No, Turn Off the Ringer!

From Page 3 ogy changes, what is or isn’t intrusive is constantly
“It doesn’t make them look like they’ve thought redefined, and Prodigal works to determine when
something out,” Dennison says. “Sometimes, I digital advertising is a good option for its clients,
would rather they just call me. I’m not going to get Hedrich says.
into text messaging them.” “Just as you can win friends, you can be really
From her work with internship recruiters, Den- intrusive and turn people off,” Hedrich says. “Most
nison finds recruiters think texting is inappropriate, people want to have some sovereign right to deter-
but at least one business professional disagrees. mine who invades their space and who doesn’t.”
Rob Palowitz, president of Palo Creative, says use As junk e-mail filters reduces the amount of spam
of cell phones, including texting, is the way profes- that gets through, Hedrich anticipates some similar
sional communication is evolving. “Texting is big,” form of filter for mobile devices will eventually come
he says, and will get only bigger when the next crop into play to ensure that “common human courtesies
of college graduates enters the work force. are not eclipsed by digital technologies,” he says.
“Sooner or later, they’re going to be people that Such courtesies should be extended by business
are in the work force, and that’s going to be the way professionals as well, he says, and Prodigal is in the
they communicate,” Palowitz says. “So get on board process of developing and employing a company
with it now and get used to using it. I’m definitely policy regarding mobile devices.
looking to text clients now to save time.” “Certain things transcend technology,” Hedrich
A 2008 poll by the says. “And everybody
New York-based Harris ‘Just as you can win friends, you can be likes to know they have
Interactive Inc. shows that really intrusive and turn people off,’ Jeff your undivided atten-
among teenagers texting tion.”
is indeed replacing talk- Hedrich says. ‘Most people want to have While Hedrich under-
ing on phones. Some 17 some sovereign right to determine who in- stands that in an emer-
million teens carry a wire- vades their space and who doesn’t.’ gency someone could be
less device, up 40% since expecting an important
2004, and they credit multi-tasking, speed and the text message, being in a meeting with someone who
option of avoiding verbal communication as why is constantly checking his phone leaves one with the
they text as much as they talk, the report says. feeling that “I was, but I was not, with that person,”
Palowitz, who traded his Blackberry for an iPhone he says. Thus, Hedrich stresses the importance of his
in January, says he hasn’t had any complaints from people giving clients their undivided attention, and
clients who receive his texts, and texting can get a letting the client know at the start of the meeting if
message to a target audience. an urgent message is expected.
“People are looking to it as another medium or Professionals should also be careful that complex
vehicle to get the message out,” Palowitz says. “It’s or sensitive communications be done over the phone
not as taboo as it once was. Marketers are always or in person, and never via text or e-mail, Hedrich
looking to push the envelope to reach their target says. He admits texting has gone from being a nov-
audience.” elty to an accepted form of communication among
Advertisements and Web banners for cell phones professionals, but shouldn’t be used for news that
complement, and sometimes replace, print pieces in requires nuance or explanation.
the mailbox, and some digital advertising has gotten Melissa Ames, director of marketing and public
even more aggressive, Palowitz says. A client with a relations for the Better Business Bureau of Mahoning
storefront in a shopping mall wanted Palo to develop Valley, refuses to text altogether. “I will not text as
an advertising campaign with a constantly repeating a professional rule, be it a contact or a fellow co-
wireless message that would instantly send a text to worker,” she says. “It’s a sign of disrespect. It’s also
passers-by with Bluetooth capability. Experimenting distracting for others around you.”
with such advertising is common in bigger cities, Ames, who switched to a Blackberry Storm from
Palowitz says, but some question its intrusiveness. an iPhone, says she couldn’t see herself without
“At what point do you feel like you’re intruding the phone, but is careful not to fall into a trap of
on someone’s privacy?” Palowitz asks. “Still, in this convenience, she says. With all that accessibility at
area, it has really started to take hold.” one’s fingertips, some could find themselves work-
Other Harris polls show that text-based adver- ing 24 hours a day. In some professions, contacting
tising is more acceptable to consumers than other people after business hours “already has become
methods. A 2008 study reports 69% of adults and the norm,” and while some might find this to be an
64% of teenagers say texting is the most preferred unprofessional practice, Ames says, its acceptability
advertising method, with 54% of adults saying they ultimately depends on the person.
are comfortable providing personal information to “I think it’s a case-by-case basis,” Ames says. “You
marketers via a mobile device, compared to 35% have to find your own limits.”
of teens. In or out of the office, “We’re in a world where
With 89% of adults using wireless phones, up there really isn’t a division,” which has become evi-
from 77% in 2006, advertisers have greatly increased dent through social media networks, Ames says. As
digital advertising. According to a 2009 poll of 1,015 such, she advises professionals to approach their cell
advertisers by Harris and the LinkedIn Research phones as an extension of their professional selves.
Network, of the 39% who said they incorporate Ringtones should be appropriate instead of a Top
advertising through cell phones, 69% of them do it 40 hit, and voice-mail messages should be simple
more often than they did a year ago. and professional.
Despite such changes in the advertising industry, “What you put out there is for everyone to see,”
“certain principles still hold true,” says Jeff Hedrich, Ames says. “You are who you are, and you are rep-
president of the Poland-based Prodigal. As technol- resenting your company.”
The Business Journal MARCH 2010 5



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99816-Youngstown Business Journal-9.25x10.875-4C-3.1

6 MARCH 2010 The Business Journal

Project Hire
Program uses stimulus dollars to
reimburse employers for on-the-
job training of new hires.
By Maraline Kubik

t’s first-come, first-serve, and $8 million is up
for grabs – available to employers who hire new
workers before the money runs out.
Project Hire, for Hometown Investment in Re-
gional Economies, is designed to help create jobs in
Ohio by reimbursing employers up to 50% of a new
hire’s wages – up to a maximum of $6,000 – while Neil Yutkin, ODOD business service representative.
that employee completes on-the-job training, reports
Neil Yutkin, a business service representative with unemployment compensation – UCRS is what we
the Ohio Department of Development. Reimburse- call the program – and been approved by them.”
ments, Yutkin notes, are made in cash rather than Project Hire came about, Yutkin continues, “when
issued as a tax credit. it was decided to prioritize getting people who are
Project Hire is funded by the American Recovery currently out of work back to work. The idea was
& Reinvestment Act and is administered by ODOD we would take a pot of money from the American
in conjunction with the Ohio Department of Educa- Reinvestment & Recovery Act and put it into an
tion and the Ohio OneStop centers. on-the-job-training program.”
Between five and 10 workers in the Mahoning Thus far, $2 million of the funds alotted have been
Valley have been hired under the program so far, spent, Yutkin reports, with the rest being disbursed
Yutkin reports, and he’s hoping more employers “on a first-come, first-serve basis to employers
in Mahoning, Trumbull and Columbiana counties throughout the state.”
become involved before other regions of the state The number of jobs that could be created is
empty the pot. uncertain, but Yutkin says reimbursement funds
There are no limits on how much funding indi- will be provided “for as many as we can until the
vidual employers or employers in a specific region money runs out.”
can receive, so whoever acts first will benefit most, Unlike most regions throughout Ohio, Yutkin
Yutkin explains. In some cases, employers seeking says, the Trumbull, Mahoning & Columbiana Coun-
funding through Project Hire have been approved ties OneStop, through area career and technical
in less than a day. centers, screen job applicants to deterimine if they
While industries eligible to participate must cre- are good candidates for adapting to the new jobs
ate jobs that pay a minimum of $8 an hour, Yutkin that will be created.
says Project Hire is not limited to manufacturers. Once new hires complete on-the-job-training,
Employers can be in any one of 11 targeted indus- employers must retain them for a minimum of six
tries or be deemed by local OneStop offices as being months to qualify for the reimbursements, Yutkin
in demand in their service areas. notes. The program cannot be used to call back fur-
The 11 target industries are: loughed employees or to replace laid-off workers.
•advanced energy / environmental technologies “This is a wonderful opportunity for this Valley,”
•aerospace and aviation Yutkin says. “In most bad economic times, it is the
•agriculture and food processing best time to bring on new employees and train them
•bioscience and bioproducts because you have the time to work with them. Being
•corporate and professional services able to use this money to offset the costs of their
•distribution and logistics training means you can start training people now as
•instruments, controls and electronics the business in this Valley is picking up. With all the
•motor vehicle and parts manufacturing good stuff we’ve been hearing lately,” Yutkin says,
•polymers and advanced materials “this is the best time to make use of this funding to
•health care be prepared for when the resurgence comes.”
•finance and insurance. With the recent announcement that V&M Star
“Individuals qualify through one of two ways,” will move ahead with plans to build a $650 million
Yutin continues. “First thing is, they have to be a rolling mill in Youngstown, Yutkin expects employ-
dislocated worker. The other thing is, they have to ers in the construction industry to become eligible
either have completed and been approved by the to participate in Project Hire. Construction, he says,
local work-force and investment groups – the One- could easily be deemed as an “in-demand” occupa-
Stops – and/or they have to have gone through an tion in the tri-county region.
The Business Journal
alChamber MARCH 2010 7

Humphries Pursues Regional Agenda
Regional Chamber CEO sees the
larger development picture – the
Pittsburgh to Cleveland corridor.’
By George Nelson

he president and CEO of the Youngstown/
Warren Regional Chamber, Thomas M.
Humphries, admits he had “a bit of a reputation”
when he was tapped to chair what was then the
Warren Area Chamber of Commerce.
Having overseen the merger of the Junior
Achievement programs in Mahoning and Trumbull
counties as local chairman for that organization,
Humphries had been involved in regionalizing
area nonprofits. In fact, one area nonprofit decided
against asking him to be its chairman when he
said he would “definitely” explore a merger with a
nearby affiliate.
“I understand that,” he says. At the same time,
he recognizes that the number of residents in the
Mahoning Valley has shrunk. “The fact is, we are a
smaller community than we were back in the ’60s,
’70s and ’80,” he says. Looking back on chamber
officials’ recent trade mission to China, he notes
they were dealing with the Shandong Province,
with a population of 90 million people. Israel, the
destination of a subsequent chamber trip, has seven
million people.
“So you have to look bigger,” he says. “Truthfully,
I think we need to look at the Pittsburgh-Cleveland
corridor. It might offend somebody, but I think we After nearly 13 years as CEO and president of the Regional Chamber, Thomas M. Humphries says he still enjoys his job.
need to promote that corridor because what happens
there helps us, too.” suggested he should consider taking on the job of Cathy, recalls, he decided to move into management
Humphries has been chairman of the Youngstown/ going in and repairing it. and so he studied engineering, eventually rising to
Warren Regional Chamber since it was formed in “There was very little process in place. It was general manager of the company’s Trumbull County
1993 with the merger of the Youngstown, War- financially challenged,” he says. operations. He was honorably discharged from the
ren and Niles chambers of commerce. A few years Humphries’ involvement with area nonprofits union, and still carries his union card with him,
later, he was preparing to step down after 29 years began as he advanced though the company then she says.
with the phone company then known as Sprint as known as United Telephone of Ohio, after separating At United Telephone, which later became Sprint,
it reorganized, and asked his attorney at the time, in 1969 from the Air Force after a four-year hitch Humphries says he used to go into “challenging ar-
John Pogue, to review the early retirement package during which he worked in telecommunications. eas” and address the issues involved. “What I found
he had been offered. Starting out in the United Telephone warehouse myself doing is I’d go into a job and, within two to
At the time, Pogue was the regional chamber’s cleaning telephones, he moved up in the company three years, I’d have it cleaned up to where it needs
chairman. Pogue, Humphries recalls, told him that in various positions such as lineman and installer. to be,” he says.
the chamber was facing “significant challenges” and While Humphries was still school, his wife, See HUMPHRIES, page 8

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8 MARCH 2010 The Business Journal

Humphries: Pursues Regional Agenda

From Page 7 ers are the lower wages paid in secondary markets
“I have a high energy level,” he continues, but such as Youngstown compared to New York City or
once he had gotten an area where it should be, he the coasts for the same work, as well as a turnover
found himself with a surplus of energy. He directed rate lower than elsewhere in the country, he reports.
that energy to volunteering in community initiatives “And then they grew because we started doing
such as the American Red Cross, Junior Achieve- inbound call centers for technical support,” which
ment, United Way and the area chambers. requires higher-skilled employees, he adds.
The chairman of the chamber board, Robert Humphries is pleased with the efforts during his
Shroder, president and CEO of Humility of Mary tenure to promote education, pointing to the 85%
Health Partners, views Humphries’ private-sector of districts in Trumbull, Mahoning and Colum-
background as a strength. “Tom has a really good biana counties rated either excellent or effective,
understanding of how business works. He had a and he continues to push for a single countywide
good reputation that he took from running a busi- administrative district the schools in Mahoning and
ness to trying to bring business in,” he says. Trumbull counties.
Early in Humphries’ tenure as CEO of the Also, while charter-government campaigns have
chamber, the Mahoning Valley faced the prospect been put on the back burner, more attention has
of losing one of its economic anchors, the General been focused on government collaboration initia-
Motors Lordstown Complex. “You’ll recall back then tives “and we have seen great results out of those
that Lordstown was not efforts,” he says. Trumbull
perceived very favorably, ‘We recognized that the only way we’re going County, for instance, is
and in fact was on a list of going to invest in three
plants to close,” he says. to save that plant [GM Lordstown] is from 911 centers rather than
“We recognized that people within that plant,’ he says. ‘If you’re the nine that had been
the only way we’re going producing a quality product in a timely fash- discussed earlier.
to save that plant is from ion with a modest net income, you have an He also points to
people within that plant,” the landmark proper-
he says. “If you’re produc- argument and a reason to stay open. If you ty agreement between
ing a quality product in don’t, you’re on the list.’ Youngstown and Girard
a timely fashion with a that led to V&M Star
modest net income, you have an argument and a rea- Steel’s recent commitment to building a $650 mil-
son to stay open. If you don’t, you’re on the list.” lion rolling mill.
The chamber launched the Bring It Home cam- Humphries was “very instrumental in getting
paign in support of keeping the plant open, work- the politicians working together,” Shroder says.
ing with both management and the United Auto Humphries is “not worried about stirring things up
Workers. The efforts led to the plant landing the either and thinking outside of the box,” as with the
Chevrolet Cobalt in 2002, and today GM is banking chamber’s initiatives on school district consolida-
on repeating that success with the Chevy Cruze, to tion. “It’s controversial but it’s causing people to
be launched later this year in the plant that appeared think,” Shroder remarks.
destined to close more than a decade earlier. After nearly 13 years as chamber CEO and presi-
While the chamber had some influence, the only dent, Humphries says the job is still enjoyable. On
people [who saved that plant], never misunderstand the day he was interviewed for this profile, he was
that,” were the people within, he says. Also, while in his office at 6 a.m., and had worked all day the
there has been a succession of general managers at previous Saturday.
the plant, “the consistency has been the labor force “He’s up with the birds. He wakes the birds,” says
and the labor leadership,” he is quick to point out. Cathy Humphries, who has become accustomed to
“My hat’s off to those guys. They understood the demands on her husband’s time after 44 years
what they had to do,” he remarks. “They turned of marriage, noting that he often worked out of
the place around.” town when he was with United Telephone. At night,
The chamber CEO’s work experience came into they’ll have dinner together, “then Tom goes into his
play in a sector that has become a niche for the study,” she says.
Valley, call centers, having managed a couple of “We kind of give each other space. I like to do
large call centers when he was at Sprint. Initially, arty things,” she continues. They make it a point
the chamber pursued call centers as a means of to spend Sundays together, often going for rides. A
employing the thousands of people in the Valley, couple of times each week they also have dinner out
many deemed “not employable,” who were going at spots such as the MVR in Smoky Hollow.
to be affected by welfare reform enacted in the mid “It’s like going home to a relative’s house,” she
’90s. While call centers need “a lot of skilled talent,” remarks – and Caffe Capri on Sundays. They live in
there is also “a large volume of entry-level positions Liberty Township but still attend mass in St. Anthony
in that business,” he says. Church in Brier Hill, where she grew up.
Over the past decade, call center employment in “Probably my favorite thing is sitting down over
the Mahoning and Shenango valleys has expanded a good meal with good people,” Tom Humphries
substantially, generating close to 5,000 jobs among says. He also enjoys working out, spending an hour
West Corp., InfoCision Management Corp. and, a day on a treadmill.
more recently, VXI Global Solutions among oth- “I relax by working, believe it or not,” he explains.
ers. “My relaxation comes when I’m doing strategic
Several factors have contributed to their growth, planning because I get into the zone, and start to
including the region’s neutral accent and the fact that think about ‘what if?’ and ‘why not?’ ” The day he
call centers here can call until midnight. When it’s no longer wants to do that “will probably be my
midnight here, it’s 9 p.m. on the West Coast. Oth- message it’s time to give it up,” he says.
The Business Journal MARCH 2010 9


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10 MARCH 2010 The Business Journal

Big Projects: Chamber Execs Share Leadership Roles

From Page 1 his department will continue an aggressive program
community should be proud of,” Good says. to visit area companies. Roughly 80% of job growth
Helping companies such as Patriot and V&M comes from expansion of existing businesses, so
with projects like these is part of the economic de- Good says his team’s focus is on meeting with busi-
velopment role the chamber plays in the Mahoning ness executives every day to assess their needs and
Valley and one of the initiatives Good oversees. help them better position themselves.
Good heads efforts in Mahoning and Trumbull “We’re going to increase our focus this year on
counties to keep businesses here and help them meeting with green, renewable energy companies
grow. He also works with site selectors to keep them because of the opportunities that present them-
abreast of what should make the Valley attractive to selves there,” he adds. The development office will
business, “working with these professionals as they also work more with advanced materials firms in
evaluate locations for new business from across the the area.
country,” Good explains. Good has two dozen or so projects in the pipeline
His role in putting together the V&M deal led – meaning they have a “good probability of occur-
U.S. Rep. Tim Ryan, D-17th Ohio, to describe the ring” within the next 12 to 18 months. “And we’re
chamber official as “a rock star” at a recent chamber going to continue working hard focusing on site
luncheon. selectors.”
Hired last year by the chamber as vice president, He says chamber officials will attend symposiums
international business attraction, Eric Planey ad- and familiarization tours in cities such as New York,
dresses another aspect of economic development. Chicago and Dallas, where such firms are concen-
Planey describes his responsibilities as working to trated. “We’ll spend two to three days in those com-
fulfill two distinct goals. One is helping Valley com- munities setting up appointments, meeting with site
panies enter overseas markets, either by exporting selectors … and assessing what projects they might
their products or forming an overseas subsidiary. The have in their pipelines,” he says.
other is bringing foreign investment to the region In the short term, Planey wants to continue to
by reaching out to countries, organizations within work on the opportunities that came about as a result
those countries, and businesses “to talk about the of the trips to China and Israel, he says. Beyond that,
Valley as a point of location.” he wants to focus on developing an international
Sometimes, the two chamber officials’ efforts strategy “where you create a matrix between cer-
intersect. When Planey has a lead, “we can provide tain countries and certain industries within those
him with the support he needs to sell the area,” countries,” he says.
Good says. When Planey was on the chamber-led At this point, Planey says he is looking at Ger-
trip to Israel, for instance, and needed information many, France, South Korea and Japan. The French
on available properties, Good’s team e-mailed the government is “well aware” of the V&M deal, and
data immediately. Good’s economic development the French consulate in Chicago has been very sup-
team maintains an inventory of available buildings portive. “We’re going to capitalize on [V&M] from
and sites as well as other data. the international aspect,” he says. “We’re really just
“That makes us look really good – the fact that laying the foundation for a long-term strategy for
we can respond in real time when we are overseas,” international business attraction for the Valley.”
Planey says.
A big part of working with companies here and
site selectors “is the timeliness of the response and
the materials that you respond with,” Good con-
tinues. “If you don’t have the information, whether
it be on properties, whether it be on community
information such as labor force or the quality of the
work force, if you can’t respond to the site selector
or the company’s informational needs quickly, you’re
quickly judged by that group as far as your level of
capabilities as an economic development organiza-
tion,” he says.
That makes the support team “critically impor-
tant” in making certain the information in printed
materials and on the Web site is current, he adds.
The print and Web materials also are geared toward
the questions that companies and site selectors
ask when they perform due diligence on the com-
“Even if we don’t land a transaction on one
particular day, people remember stuff like that,”
Planey says.
In instances where a competing community
might have initially seemed like a better fit for a
prospect’s needs, providing “a level of service that
is above [what the other community provided] has
given us a leg up,” Good says. “We were able to seal Girard Mayor James Melfi was commended by officials at the
the deal” because of the timeliness of the response press event where V&M announced its $650 million project.
and the depth of the information provided. Settling the land dispute between Girard and Youngstown
On the retention and expansion front, Good says consumed much of Good’s time the last few months.
The Business Journal MARCH 2010 11

Chieffo’s Popularity Feeds Growth

Private-label pasta paves the “To please the consumer you have to give them
quality and value. To please retailers, you have to
way to new markets. give them good service and profitability,” Yannucci
explains. “In the food industry, you don’t work on
By Maraline Kubik dollars, you work on pennies,” he says. Frozen pasta,
he continues, competes directly with dry pasta,

ld family recipes make for the best meals.
Bringing them to the masses at a fair price
– and a profit – keeps Chieffo’s homemade
pasta feeding one of the hungriest markets in the
which is sold at lower prices, and is easier and less
expensive to store and stock.
Chieffo’s frozen pasta also competes with large
national and regional companies that are in better
positions to promote their brands and build name
The business was born nearly 30 years ago when recognition, Yannucci says. Entering new markets is
the Chieffo family, Dominic and his son, Nick, also challenging because what sells best varies from
began making pasta for a few local grocers, says community to community.
Richard Yannucci, owner and president of In the Mahoning Valley, where there is a large
Chieffo’s, a Niles-based company that ethnic population, Yannucci says cavatelli is the
makes a complete line of frozen pasta top seller. In the Pittsburgh market, where many
– cavatelli, spaghetti, linguini, gnocchi, residents trace their ancestry to central Europe, gn-
cheese ravioli, beef ravioli, tortellini and occhi – bite-sized dumplings – outsell the cavatelli in
stuffed shells. many of the supermarkets and grocery stores where
The Chieffos perfected the recipes Chieffo’s frozen pasta is available.
and added their name to the business “All of the [major grocery store] chains” that
in 1981, Yannucci continues. Nick serve Ohio, western Pennsylvania, West Virginia,
sold the business to his son, Mark, Maryland, Michigan and Connecticut carry Chieffo’s
in 2000, a dozen or so years after line, Yannucci reports, including Marc’s, Fishers
Yannucci had joined the com- Foods and Giant Eagle.
pany as a sales representative. Yannucci says Chieffo’s frozen pasta is also
Five years lat- packaged under several private labels,
er, Mark sold expanding its availability to
the business to a much wider geographic
Over the
years, the
��� � area that encompasses the
entire Midwest. Chieffo’s
frozen pasta is also served in
product restaurants and sold by the
line and single serving by a regional
geograph- vending company.
ic area While the majority of busi-
served has Sponsored by: ness is local and regional
grown, but the secret to the – the region from Cleveland to
company’s success has always ComDoc Pittsburgh is second only to the
been “doing what we do best,” Boston-to-New York corridor when
Yannucci reflects. That means it comes to per-capita consumption of
making high-quality pasta that pro- pasta – Yannucci expects much of his
vides consumers a good value and grocers company’s growth will come from expanding
an opportunity to turn a profit. its private label business.
Introducing new products could pave the way
Richard Yannucci, owner and president of Chieffo’s, for some growth under the Chieffo’s banner but,
displays one of his company’s most popular products. See CHIEFFO’S, page 12
12 MARCH 2010 The Business Journal

Chieffo’s: Popularity Feeds Growth

From Page 11 to the next room where it is fed through a machine
Yannucci says, that could be problematic. Research that rolls it into sheets, cuts the sheets into ribbons
and development for new products is expensive, he and then cuts and molds the ribbons to form hun-
explains, and any new frozen pasta product would dreds of thousands of cavatelli.
compete with Chieffo’s exisiting line. So, rather than The cavatelli are fed onto a vibrating conveyor
generate new revenue, a new product could take a belt that separates them – so they won’t stick to-
bite out of Chieffo’s existing market. gether – and then carries them to a spiral freezer
New products could also strain resources, Yan- where the temperature averages 10 degrees below
nucci says, recalling a time when the company zero. After 22 minutes in the deep freeze, the con-
introduced frozen lasagna. Its popularity speeded veyor carries the cavatelli to the scale where it is
its demise because putting it together – layering the automatically weighed and packaged.
wide, flat noodles with beef, cheese and spaghetti Sealed packages continue along the conveyor to
sauce – was much too labor-intensive, Yannucci the packing room, where it is boxed into 12-pound
explains. “We couldn’t make enough of it.” cases and moved into the freezer.
Whether a product is successful isn’t necessar- Meanwhile, workers at other stations throughout
ily based on how the consumer responds to it, he the plant weigh and package spaghetti or stuff shells
points out, but rather how it affects the company’s by hand.
bottom line. “Can you make money with it?” Yan- Not every product in Chieffo’s line is made every
nucci asks. day, so the seven workers who operate one shift are
Chieffo’s experienced other growing pains too. cross-trained on equipment, Yannucci notes.
A line of frozen pierogis failed miserably, he says. Deliveries to area grocers are made by Chieffo
Introduced in the local market, they not only com- employees, and Yannucci says he’s been known to
peted against the national brand giants, but all of make emergency deliveries in his car on weekends
the homemade varieties at area restaurants and when retailers have run out of his product.
churches. A line of low-salt spaghetti sauce was At Frattaroli’s Sparkle Market in Struthers, the
also a flop. Not because it didn’t taste good, Yan- freezer case is restocked with Chieffo’s pasta almost
nucci says, but because it didn’t sell well enough to every day, says Jack Augustine, a manager in the
generate a profit. store. Cavatelli is the best seller, he says, but the
What he’s learned from these experiences, he says, full line of Chieffo’s products is popular with his
is, “If it ain’t broke, don’t fix it.” customers.
Expanding into other markets by selling frozen “Most customers know it’s made here. They buy
pasta labeled and marketed as a store brand does not it because it’s local and they like the taste of it,”
require the research or expense developing a new Augustine says.
product would require, would not cut into existing Demand for Chieffo’s products, especially the
sales and would not pit an unknown brand against homemade spaghetti and linguini, increases around
a national giant. the holidays, Augustine continues. “It is a specialty,”
To meet ongoing demand from the customers he explains. “Not everyone [makers of frozen pasta]
Chieffo’s serves, the plant in downtown Niles com- has spaghetti and linguini – a lot of them have
pletes 22 batches of pasta a day, which collectively cavatelli.”
require 2,400 pounds of flour and produce more Chieffo’s frozen pasta is an especially good seller
than 400 12-pound cases. given the market Frattaroli’s serves, observes Jerry
Flour, water and eggs are blended together in an Caruso, another manager in the store. Struthers is
enormous mixer that resembles a much-oversized a working-class community, he says, so there are a
washing machine. Once the dough is thoroughtly lot of families looking for affordable meals that are
blended – each batch weighs about 300 pounds – it quick and easy to prepare when they get home after
is unloaded onto a stainless steel table and wheeled putting in a day on the job.
Giant Eagle sells Chieffo’s cavatelli – both the
low-fat and the ricotta cheese varieties – gnocchi,
meat ravioli and cheese ravioli at all of its 222 stores,
Chieffo’s reports spokesman Erik Yorke.
“People do really like it,” says Doug Leonard,
Products: Frozen pasta – ricotta cheese ca- frozen food manager at the Giant Eagle on Board-
vatelli, low-fat cavatelli, gnocchi, cheese ravioli, man-Canfield Road in Boardman. He restocks the
beef ravioli, tortellini, stuffed shells, spaghetti freezer case there with Chieffo’s pasta “every couple
and linguini. of days,” emptying four to six cases every time he
Headquarters/Manufacturing: Niles, Ohio
At Macali’s Giant Eagle in Niles, Chieffo’s ricotta
Number of Employees: 7 cavatelli is the top seller, with the store selling
Retailers: Major grocery store chains that serve about three cases a week, more around the holidays,
Ohio, Pennsylvania, West Virginia, Maryland, reports Chris Calderone, manager of the dairy and
Indiana, Illinois, Minnesota and North Dakota, frozen food departments.
including Marc’s, Giant Eagle and Fishers Foods. Chieffo’s cavatelli and gnocchi are both strong
Many independent grocers, including Sparkle sellers at the Central Percentum Giant Eagle in To-
Market and Rulli Brothers. ledo, says Teresa Zakareckis, a frozen food manager
Geographic Area Served: Midwestern United at the store. Chieffo’s frozen pasta “is very popular.
States A lot of people do buy it,” she says. “I’m guessing
our customers know it is made in Ohio. That may
Source: Richard Yannucci be one of the reasons it sells,” she says. “They want
to support the Ohio economy.”
The Business Journal MARCH 2010 13

PTV Offers Public Access to Television

Schools, churches, individuals
submit programs that are aired
uncensored on cable channels.
By Maraline Kubik

ver dream you were a rock star, famous athlete
or TV actor?
With PTV you can be, sort of.
PTV is a public-access community television sta-
tion operated by Perkins Communications that airs
on Time Warner Cable channel 9 in Youngstown and
channel 15 in Warren. It serves more than 175,000
cable television subscribers and also streams live on
the station’s Web site,
Programming is primarily created by the viewing
audience and features area residents such as Jammin’
Johnson, a local hip-hop artist whose music videos
air on PTV and are available on demand on its Web
site, former state senator Thomas P. Gilmartin Sr.,
who hosts an educational program for preschoolers,
and Kristal Hart, an area native living in New York Joe Perkins says he operates the public television station, which serves 175,000 viewers, as a service to the community.
who provides coverage of sporting events – primarily
boxing – and interviews with athletes. Services and clock seven days a week, up and running. which require the handling fee. VHS tapes can also
sermons from area churches and local clergy also Revenues come from sponsorships, which are be submitted, Perkins says; they require a handling
air on the station, reports Joe Perkins, president of based on a Public Broadcasting Service model, and fee plus a charge for conversion to digital format.
Perkins Communications, as do performances by fees charged for programs that must air at specific Among the submissions PTV actively seeks are
Ballet Western Reserve. times, Perkins says. There is no advertising and no videos of community events, weddings of area
“PTV is a television station for the people where infomercials. residents, children’s sporting events and political
the things they care about are given time on TV,” Everything submitted is aired – there is no cen- commentaries. In fact, Perkins says, one of his
Perkins explains. sorship, he says – but submissions are broadcast at goals is to use the onsite television studio, inside
Students from Warren G. Harding High School random. “The only thing that we ask is that if there the Youngstown Business Incubator in downtown
in Warren produce some of the original programs, is adult content that they let us know and we’ll make Youngstown, to introduce individuals running for
including broadcasts of high-school basketball, Per- sure it’s on later,” Perkins explains. public office to the general public in a manner that
kins says. In addition, the station airs a news, sports Time Warner Cable’s community access guide- voters can “really get to know the candidate.” Other
and weather program “anchored by a robot, Maria,” lines specify that programming containing nudity TV stations offer sound bites, he explains, PTV’s for-
he says. “She’s one of our software developments.” or language of an adult nature will be broadcast mat allows for longer presentations and discussions
Software development is Perkins Communica- between midnight and 5 a.m. that can be presented in real time or rebroadcast at
tions’ primary line of business, its president says; While there is a charge for programs that must a variety of times on different days.
PTV is a community service offered at the company’s be broadcast at a designated time, he says most sub- “We did that with the State of the Union address,”
expense. Although the TV station is a commercial missions to be broadcast at random require only a Perkins says. “This was the only place you could see
venture, Perkins says he would be satisfied if “we nominal handling charge to cover the costs of load- it in its entirety [after it originally aired] without
break even and create a couple of jobs.” He’s hoping ing the content onto the servers. advertisements or commentary.”
the venture will eventually provide enough revenue Programming can be submitted using hyperlinks Independent films and other full-length programs
to hire two full-time employees and some part-timers to You Tube, Webcam feeds and Web pages, which submitted by viewers are limited to 27 minutes,
to keep the station, which is on the air around the are free, or DVDs and cell phone camera videos, shorts to five minutes and fillers to 12 minutes.


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14 MARCH 2010 The Business Journal

The Valley’s Business Matters

25 East Boardman Street, Suite 306
P.O. Box 714, Youngstown, Ohio 44501-0714
Telephone 330 744 5023
Fax 330 744 5838 • 330 744 0634
Web site:

Publisher Andrea Wood

Assistant Publisher Eileen Lovell
Copy Editor Dennis LaRue
Page Editor Maraline Kubik
Daily Buzz Anchor Stacia Erdos
Videographers Jeremy Lydic
Tony Marr
Mike Moliterno
Senior Reporters Dan O’Brien
George Nelson
Jeremy Lydic
Columnists Monnie Ryan
Lou Zona

Journal Opinion
Photographer Tony Mancino
Rate Comparisons Cara J. McClure
Sales Manager Janet O’Malley
Account Executives Gail S. White
Dan Gonder
Art Director/ Fred Sipe

2,000 New Jobs in 2 Weeks


When he came to the Lordstown complex Feb. industrial development and innovation.”
23, the North America president of General Motors This region was also at the heart of the organized
Co., Mark Reuss, declared the plant “Ground Zero.” labor movement, and in the 1980s and ’90s was left
Here the heavily anticipated Chevrolet Cruze will be in despair at the void left by the retreat of the steel
produced and bring the return of better times to the industry. “The Mahoning Valley is one of the best
automaker, the region and the nation, he said. and most-often- referred-to illustrations of industrial
T he Business Journal is published semi- The automaker’s announcement that it would and economic development and evolution here in
monthly (twice a month) in Youngstown, Ohio. add a third shift – 1,200 more workers – to turn out the United States,” Lawson says.
Copyright 2010 by Youngstown Publishing Co. the Cruze came one week after V&M Star Steel an- So these developments ought to presage better
nounced it would build a $650 million rolling mill times. Certainly, they’re cause for optimism, espe-
All rights reserved. Reproduction or use, with- near its Brier Hill operation. That mill is expected to cially in an area inured to hearing setbacks.
out written permission, of editorial or graphic employ 350 workers once it’s up and running, and Of course, these jobs only begin to fill the void
content in any manner is prohibited. provide another 400 to 500 construction jobs in the left by the myriad closings, downsizings and layoffs
18 months needed to build it. we have suffered since 1977. Even as the announce-
Average Issue Readership: 45,000
The day after GM’s big announcement, TMK ments were being celebrated, workers at Denman
Mail Subscription Rates: $42 for 12 months; Ipsco said it would start a threaded pipe mill in Tire Corp. learned their plant will close if the com-
$77 for 24 months; $96 for 36 months. Brookfield. The week before, Revere Data opened a pany can’t secure financing or a buyer.
Back Issues: If available, $4.75 apiece financial research center in downtown Youngstown. Still, the economic developments of the last
prepaid (mailed); $3.25 apiece prepaid And there was more good news: O.A.O. Severstal is two weeks certainly provide a base to build on and
(picked up at our office). gearing up to reopen its steel mill in Warren. The restore our confidence. “We see projects that are
Chester Hoist Division of Columbus McKinnon announced around the country and this is as big
Submission Policy: News articles and photographs
Corp. will more than double its presence in Colum- as it gets,” reflected Walter Good, vice president of
may be submitted but cannot be returned. We reserve
the right to select and edit all articles and letters.
biana County by spending $2 million to reopen the economic development at the Youngstown/Warren
All submissions become the editorial property of The former Solartec plant in Salem and hire 90 employees Regional Chamber, at the V&M announcement.
Business Journal. Submissions may be edited and over the next three years. That project “opens up so many doors to talk about
may be published or re-used in any medium including Sure enough: We may be recovery’s ground zero. what’s going on in the Valley and tell the story that
Business Journal television and radio reports and the “We’ve always been an industrial bellwether for this is a great place when you are looking to make
Daily Business Journal Online. the country,” reflects Bill Lawson, director of the a major investment,” he said.
Locally owned by the Mahoning Valley Historical Society. Lawson often Let the good news spread.
refers to the Valley as “the Silicon Valley of the early
Youngstown Publishing Co. 20th century when it was on the leading edge of In-depth story, pictures of GM’s BIG NEWS: Pages 40-42
The Business Journal MARCH 2010 15


Impressions ������������������
The Angels in Our Lives ����������������������
Remembering people get her through the school year. “I
who helped, guided us. can remember everything about Miss
Martin and her class and I’ll never

here are so many wonderful forget her wonderful kindness to me,”
stories – few of them told and Tina recalls.
many all too quickly forgotten Not so long ago I took a phone
– about the special people who enter call from John Ellefson. This was no
our lives and touch us in a profound ordinary phone call and I still cannot
way. Sometimes believe that it ac-
their entry into My mother, rest her soul, very tually happened.
our lives is brief. much believed that angels enter I met John in
But their influence the late ’50s when �����������������������������������������
stays with us until our lives and guide us through he was a young ����������������������������������������������������
we die. crises and hard times. teacher with a
These are peo- summer job of ����������������������������������������������������
ple who believe in us when we don’t running the Rowan Avenue Play- �������������������������������������
believe in ourselves, when few others ground on the east side of New Castle.
give us a chance at succeeding. Such a I was a high school kid with friends
person might be an elementary teach- who lived near the playground and �����������������������������������������������������
er who takes a special interest in a they introduced me to this most won-
talent you didn’t know you had, or derful and caring person.
an uncle who saw to it that you had John’s demeanor and personality, �������������
a new suit for that all-important high his love of kids and his knowledge of
school prom. baseball made meeting him an expe-
My sister Tina, born in the depths rience of a lifetime. Here I was, a kid

of the Great Depression, remembers from the poorest area of the city with
that she didn’t have a pair of shoes next to no self-confidence, but John
to wear to school. Tina never forgot took care of that in a hurry.
the kindness of a teacher named Miss Soon I was immersed in John’s
Martin at North Street School. Miss Rowan Baseball League. With his
Martin gave her a pair of boots to See ZONA, page 16


� � � � � �������������
� � � � � ��������

Onward and Upward � � � ������������������

Not so long ago, V&M register at age 10.
Growing up in the post-steel era, I
� � � � � ������������������������������������
deal would not happen. thought boarded-up buildings, friends
moving away and big industrial sites
� � �
�� �����������������
� � �������������������������������������������������

I was 10 years old on the infamous sitting empty were just normal life � �����������������
“Black Monday,” Sept. 19 1977, happenings. � ���������
when Youngstown Sheet & Tube’s When I graduated from high
Campbell Works closed, setting off the school, most of my friends went away
chain of events known as the death of to college – and most of them never
steel in the Mahoning Valley. I can’t came back. I went to Youngstown State
say that I remember very much about University, and graduated in the midst
that day at all. of the “brain drain” study conducted
My father worked at General Mo- by the university that documented the
tors in Lordstown so I wasn’t directly exodus of youth from the Valley.
affected. I do remember that many of I mention these things not as a
my friends had parents who lost their whining adult, resentful of my up- ��������������������������� �������������������������
jobs – but that kind of crisis doesn’t See WHITE, page 16
16 MARCH 2010 The Business Journal

Zona: Angels in Our Lives

From Page 15 the Internet after a chance meeting and how his extraordinary kindness the topic of angels. I was working as
strong encouragement, I achieved ath- at Giant Eagle with a mutual friend made a difference in our lives. a millwright’s helper accompanying
letic success and, more important, a who thought that John had landed You don’t hear much about guard- a fellow who repaired the various
sense of self worth and the confidence in Youngstown – not Ohio but the ian angels these days, but when I was pumps in the mill.
that comes with it. Youngstown near Rochester, N.Y. a kid in Catholic grade school it was One day we went out to a sta-
John cared about each and every So I wrote a note to the John a popular topic that always held our tion that pumped sulfuric acid into
one of us and the baseball league Ellefson listed there and hit a home interest. The nuns made guardian an- trucks that carted it from the plant.
elicits warm memories even today. run. John, now 83 years old, called gels so real that I named my personal (The acid is used to pickle the metal
Most of us had never even seen a new me and I can’t express my joy when angel “Mickey” – for Mickey Mantle, in one of the various processes that
baseball, but somehow John found a I saw his name on the Caller ID. The not Mickey Mouse. treat steel.)
way to furnish us with a new ball for greatest part of it was that I got to say I remember Father Tom Smith tell- The millwright told me to wait for
each game. thank you. ing our third-grade class at St. Joseph him above ground as he descended
He kept our batting averages and My mother, rest her soul, very School to make sure we paid attention a ladder to the below-ground pump.
showed us how it was done – he even much believed that angels enter our to our guardian angels and to heed Bored after a half an hour of waiting, I
created an all-star game that all of us lives and guide us through crises and their advice. This probably did two decided to explore the grounds around
played in. It was a fantastic experience hard times. My mother’s angels often things: it cautioned us to be careful the pumping station. All of a sudden
made possible by someone who cared. assume human form, like my sister’s while we played in the schoolyard, the pump turned on and an enormous
Long after the playground days, Mr. teacher, Miss Martin, or Mr. Ellefson. and it was a warning not to do bad rubber hose uncoiled and began
Ellefson made it a point to write and My mother spoke often of a woman things since our guardian angels were spraying acid in all directions.
mail us a card or note saying he was named Mrs. DiThomas who helped always present (heavenly spies, you Had I remained in that spot, I
keeping up with our accomplishments her through the bleakest part of the might say). likely would have been burned alive
– graduations, beginning new jobs, Depression when our family had so Before we left school for home, we by an acid bath. I can still hear that
and the various honors and recogni- little. stood and said a prayer to our guard- frightened millwright shouting my
tions we received. And she spoke as well about an ian angels. I remember each word of name after he quickly shut off power
Eventually John left New Castle insurance agent with the memorable the prayer. And I just bet that every to the pump. Inadvertently he had hit
and found great success elsewhere name of Cosmo who, back in the time that it’s said, an angel, like Clar- the wrong switch and was overjoyed
both as a teacher and as a school ad- 1950s, helped my parents through ence in “It’s a Wonderful Life,” gets when he saw that I was safe.
ministrator. another most difficult time after the his wings. When I eventually shared the ex-
Many years passed, decades in death of my infant sister. When I was in college and had a perience with my mother, she knew,
fact, since I last spoke with him. He Although I was a small boy, I summer job with U.S. Steel Corp. in “It was your guardian angel.” After all
had been on my mind so much that remember Cosmo and recall the heart- Ellwood City, I saw an incident which these years, let me just say one thing,
I decided to try to search him out on felt advice he offered Mom and Dad to this day causes me to wonder about “Thanks, Mick!”

White: Onward and Upward

From Page 15 steady, strong, wonderful winds of the sinking Valley ship around long local daily newspaper pictured three
bringing – not at all. I mention these change. before. Indeed, V&M is the perfect of the latest federal ethics-law viola-
things because this is my experience. It’s a strange breeze to me – I’m not example of opportunity meeting tors of the Valley.
This is all I know. quite sure if I should toss the raincoat preparation. My stomach
I remember my grandparents talk- in the closet for good in anticipation Not so long ago, turned at the sight
ing about the Great Depression. “We of sunny days ahead or make sure I a deal like V&M It’s time to see what possibili- of them.
didn’t know we were poor because ev- carry my umbrella, just in case. (We would have never ties a truly thriving Valley can This is the fi-
erybody was poor,” they liked to say. Youngstowners are a breed that have happened in the achieve so that, in time, we can nal frontier for
I didn’t know how “depressed” grown very leery of “hope.”) Valley. Backhand- share the story of how we took the Valley to over-
my hometown was because I had It’s difficult to pinpoint when the ed dealing and the come. It is time
no memory of a time when it was tide changed. Small, steady waves of expectant “greased our rubble and turned it into to expel ourselves
booming. improvement have been evident for palm” would have gold. from the remnants
And, quite frankly, I still have no some time now. catapulted V&M of a past riddled
memory of a booming Mahoning Of course, V&M Star is a huge executives all the way back to Paris. with bribery, fraud and deceit. To em-
Valley – but I am starting to feel the wave of success but we had turned Instead, private organizations, brace even one offender (that includes
public economic development agen- Jimbo) is to sentence the Valley to
cies and government officials worked repeating our past.
together on a regional level to make We’ve worked too hard to go
sure V&M Star did not overlook the back.
Valley. It’s time to experience what the
Truly, the cooperation among ev- breeze of community success feels
eryone involved was unprecedented. like. It’s time to see what possibilities
The process, in fact, was so unusual a truly thriving Valley can achieve so
that it is being studied so that it that, in time, we can share the story
can be a model in other parts of the of how we took our rubble and turned
country. it into gold.
Not bad for a community where a And it’s time for our youth to be
former mayor insisted that he start his able to have the choice to live, work
daughter’s car every morning, for fear and raise their families in this grand
it might have been tampered with by place to call home – the Mahoning
an organization with “collaboration Valley.
Still, even in the midst of all of our Catch the Business Journal Daily Buzz news-
good news, a recent front page of the cast posted at
The Business Journal MARCH 2010 17


First Place Bank introduces

Regional Chamber Report SBA Lender as part of
$10 million stimulus program
Exciting Time for Valley for local small businesses
World is taking notice Friday, March 12, at the Our Lady of
Mount Carmel Hall in Youngstown.
of our attractive The future looks brighter than ever
business climate. before – especially with the V&M Star The U.S. Small Business
expansion news – so we’ll have a lot to Administration (SBA)

n the last couple of weeks, we’ve all talk about at this breakfast event.
read story after story about business Youngstown Mayor Jay Williams, Recovery Act has made
expansions and job creation in the named one of eight Public Officials improvements to its
Mahoning Valley. of the Year by Governing Magazine, 7(A) program, including
With the announcements of V&M will provide an overview and update
S t a r ’s p l a n s t o of what’s happen- eliminating fees and
move ahead with A flood of stories about the ing in the city and providing a 90 percent
the $650 million
economic revival in the Valley what to expect in bank guarantee.
expansion of its 2010 and beyond.
Youngstown plant is sweeping regional, national And Presley Gil- Since SBA program details
and the location of and international media. lespie will give the
a Revere Data of- audience a glance
are often complicated for
fice in downtown Youngstown coming at what the Youngstown Neighbor- business owners to navigate,
just a day apart, the area was abuzz hood Development Corp. has planned First Place Bank has
with talk of a new, brighter chapter in for 2010. Also providing an update appointed John Yurchison
the Valley’s story. The announcements will be Chris McKee, a community
as our SBA banker.
meant almost 500 new direct jobs as- organizer with the Mahoning Valley John Yurchison
sociated with the two projects. Organizing Collaborative.
That’s not too shabby in these For reservations, visit Regional- SBA Lender With over 25 years’ banking
tough economic times. or call Jennifer at 330 Vice President experience and 7 years
So when GM announced the very 744 2131, ext. 12. specializing in SBA lending,
next week that it would add a third First Place Bank
shift and 1,200 jobs at the Lordstown Share In the Celebration John has the expertise to
Complex to build the Chevy Cruze, it At Our Annual Meeting help local small businesses
seemed like the Valley’s prayers were
With all of this exciting news of Call today take advantage of new
being answered. We were beginning
to see the end of the recession and
late, the Regional Chamber’s An- at 330-726-3623 national SBA initiatives
nual Meeting luncheon on Thursday, on 7(A) loans.
decades of tough times for the Valley.
March 25, promises to be a can’t-miss or 1-800-997-9856
Of course, we at the Regional
Chamber are excited about all of this
event. or e-mail John at First Place is dedicating
In addition to an update on the
good news, but the area’s residents
Chamber’s activities in 2009, the event $10 million to assist local
and leaders aren’t the only ones talk- thriving small businesses
will include a keynote address from
ing about it. A flood of stories about
YSU’s president, David C. Sweet, who through the SBA Recovery
the economic revival in the Valley is
is retiring from the university this
sweeping regional, national and in-
year, and our annual awards presenta- Act. We’re proud to
ternational media. At press time, the introduce John as the
tion. This year’s award recipients are:
chamber had tracked 35 regional, na-
tional and international stories on the
•William G. Lyden Spirit of the Val- small business community’s
ley Award: Core 6 Joe Kaluza Project.
V&M announcement and even more • Donald Cagigas Spirit of the
advocate in boosting the
stories related to GM’s announcement local economy.
Chamber Award: Florence Wang,
at the Lordstown Complex.
president, W&K International Trad-
The Valley garnered headlines in
ing Co. Inc., and a member of the Re-
CNN Money, Industry Week maga-
gional Chamber’s board of directors.
zine, Manufacturing and Technol-
• Chairman’s Political Achievement
ogy e-journal and Channels 45/49’s
Award: Jay Williams, mayor, city of
NEOtropolis. The world is beginning Youngstown.
to see what we’ve always known: The What do the Regioinal Chamber
Mahoning Valley has much going for and all of these award recipients have

it that businesses find attractive. in common? All of their work in 2009

Make Your Reservations for was “Building a Foundation for the
Good Morning, Youngstown For more information or reserva-
Member FDIC
We’re still taking reservations tions, go to or
for Good Morning, Youngstown on call 330 744 2131, ext. 12.
18 MARCH 2010 The Business Journal

February 26,
2-Week Trend APY*

�������������������������� CF BANK (formerly Central Federal S&L) 1 Year 1.50 — .10/

���������������������������� Wellsville 24 Mos. 1.75 — N.A.
����������������������� CHARTER ONE BANK 12 Mos. .40 — N.A./
5 Year 2.15 — .05
�������� CONSUMERS NATIONAL BANK 12 Mos. .55  .10/
�������������� Salem 4 Year 2.50 — .18
CORTLAND BANKS 1 Year .75 — .50/
����������������������� Cortland 5 Year 2.50 — .25
E.S.B. BANK 1 Year .80 — .30/
�������� Ellwood City, Pa. 4 Year 2.15 — .30
������������������ FARMERS NATIONAL BANK 1 Year .85 — .10/
Canfield 4 Year 1.90 — .25
�������������� FIRST MERIT BANK 1 Year .35 — N.A./
New Castle, Pa. 2 Year 1.60  .05
������������������������ FIRST NATIONAL BANK OF PA. 1 Year .50 — N.A./
����������������������������� Hermitage, Pa. 5 Year 2.25 — .10
East Liverpool 37 Mos. 2.38 — .40

FIRST PLACE BANK 6 Mos. .45 — .25/

Boardman 12 Mos. .80  .25

��������������� HOME FEDERAL

1 Year
3 Year
1.00 —
1.61 

��������������������������� HOME SAVINGS 12 Mos.

1.50 —
Minimum $500 .35/
Youngstown 5 Year 2.75 — .35
Minimum $500

����������������������� HUNTINGTON BANK

1 Year
4 Year
.94 
2.71 

�������������������������� KEYBANK
1 Year
3 Year
.20 
1.10 
5 Year 2.10 


1 Year
13 Mos.
1.00 —
1.26 —
���������������������� 2 Year 1.76 —

PNC BANK 1 Year .60 — N.A./
Youngstown 48 Mos. 1.25 — N.A.

PNC BANK 1 Year .60 — N.A./

������������������ Conneaut Lake, Pa. 5 Year 1.55 — .05

US BANK (formerly Firstar Bank) 1 Year .30 — N.A./

Boardman 59 Mos. 3.35  .10
���������������� *Annual Percentage Yield Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.”
Every effort is made to ensure the accuracy of The Business Journal compilations. Rates are subject to change without notice and should be
confirmed with the individual financial institution before entering into transactions. ©2010 Youngstown Publishing Co. All rights reserved.
The Business Journal MARCH 2010 19

BuildingWealth SPONSORED BY

How Grandparents Can Help Grandchildren with College Costs

As the cost of a college cation expenses are completely tax free at the federal Another attractive feature of 529 plans is that under
education continues to level (and at the state level too). current law, grandparent-owned 529 accounts are
climb, many grandparents Grandparents can open a 529 account and name a excluded by the federal government’s financial aid
are stepping in to help. grandchild as beneficiary (only one person can be listed formula – only parent-owned 529 plans count. So a
This trend is expected to as account owner, though), or they can contribute to grandparent-owned 529 plan won’t impact a grand-
accelerate as baby boom- an existing 529 account. Grandparents can contribute child’s chances of qualifying for federal aid.
ers, many of whom went to a lump sum to a grandchild’s 529 account, or they can However, if you need the money in your 529 account
college, become grandpar- contribute smaller, regular amounts. for something other than the beneficiary’s college ex-
ents and start gifting what’s Regarding lump-sum gifts, a big advantage of 529 penses – for medical expenses or emergency purposes,
predicted to be trillions of plans is that under special rules unique to 529 plans, for example – you’ll face a double consequence: the
dollars over the coming individuals can make a lump-sum gift of up to $65,000 earnings portion of the withdrawal is subject to a 10%
Andrew M. Moyer, CFP®
decades. ($130,000 for joint gifts by married couples) and avoid penalty and will be taxed at your ordinary income tax
Helping to pay for a grand- federal gift tax. A special election must be made to treat rate. Also, note that funds in a grandparent-owned
child’s college education can bring great personal the gift as if it were made in equal installments over a 529 plan may still be factored in when determining
satisfaction and is a smart way for grandparents to five-year period, and no additional gifts can be made Medicaid eligibility, unless these funds are specifically
pass on wealth without having to pay gift and estate to the beneficiary during this time. Significantly, this exempted by state law.
taxes. One of the best ways to accomplish this goal is money is considered removed from your estate, even
the use of 529 Plans. though one grandparent can still retain control over Note: Investors should consider the investment objectives,
A 529 plan can be an excellent way for grandpar- the funds if he or she is the 529 account owner. risks, charges, and expenses associated with 529 plans before
investing. More information about specific 529 plans is avail-
ents to contribute to a grandchild’s college education, There is a caveat, however. If the donor were to die able in each issuer’s official statement, which should be read
while simultaneously paring down their own estate. during the five-year period, then a prorated portion of carefully before investing. Also, before investing, consider
Contributions to a 529 plan grow tax deferred, and the contribution would be “recaptured” into the estate whether your state offers a 529 plan that provides residents
withdrawals used for the beneficiary’s qualified edu- for estate tax purposes. with favorable state tax benefits.

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20 MARCH 2010 The Business Journal

February 26,
2010 Credit Union Rates
INSTITUTION Term APY Minimum Term Rate Type Down Payment Term Rate, 2-Wk Trend Fees

ASSOCIATED SCHOOL 1 Year 1.00 — $1,000 Up to 48 Mos. 5.25 Fixed 20% 15 Year 5.00 — 2+200
EMPLOYEES 2 Year 1.75 — $1,000 Up to 66 Mos. 5.50 Fixed 20% 20 Year 5.25 — 2+200

FIRST CHOICE COMMUNITY 1 Year 1.65 — $500 Up to 48 Mos. 5.65 Fixed 20% 15 Year 5.50 — 2+200
(formerly RMI CO. EMPLOYEES) 2 Year 2.00 — $500 Up to 60 Mos. 5.65

OHIO EDISON/ 1 Year 1.00 — $1,000 Up to 48 Mos. 5.99 Fixed 5% 15 Year 5.125  0+costs
PENN POWER 2 Year 1.76 — $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 5.625  0+costs

SEVEN SEVENTEEN 1 Year .80  $1,000 Up to 48 Mos. 5.99 Fixed 5% 15 Year 4.375 — 0+costs
2 Year 1.55  $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 5.125  0+costs

STRUTHERS FEDERAL 1 Year 1.00 — $1,000 Up to 48 Mos. 6.00 N.A. N.A. N.A. N.A.
2 Year 1.51 — $1,000 Up to 66 Mos. 6.00

YOUNGSTOWN CITY 1 Year 1.00 — $2,000 Up to 60 Mos. 5.99

EMPLOYEES FEDERAL 2 Year 1.56 — $2,000 Up to 72 Mos. 6.99 N.A. N.A. N.A. N.A.

Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.” Rates are subject to change without notice and should be confirmed before entering into transactions.
©2010 Youngstown Publishing Co. All rights reserved.
The Business Journal MARCH 2010 21

Automakers Advise Suppliers to Diversify

By George Nelson
Bob Fenn, program director for the Ohio Procure- on the wars in Iraq and Afghanistan.

utomobile manufacturers want their suppliers ment Technical Assistance Center in Painesville. The Among the success stories Fenn cited is Nordic
to be healthy, but they warn that those centers offer “quite a bit of business intelligence,” Air Inc., an Ashtabula company that makes climate-
suppliers must look beyond the auto industry he says. The nine centers in Ohio also provide as- control devices for steel mills. In November 2003,
if they want to keep their health. sistance in preparing bids and certifying companies the company contacted the procurement center,
Market diversification is “crucial” for any busi- to do business with the government. which found a pre-solicitation notice a month later
ness, but especially those in the automotive supply The federal government, he notes, is “the larg- and helped the firm submit a bid in April 2004. Since
industry, says Ken Walker, senior business consul- est customer in the world,” making $400 billion in then, the company has done more than $300 million
tant with the Manufacturing Advocacy and Growth purchases in 2008, a figure that excludes spending in business with the government.
Network, or Magnet. At one point, the domestic auto
industry produced 16 million vehicles annually but
today “is nowhere near that,” he says.
“The paradigm has shifted. It’s just not going to be
that business for these manufacturers,” says Walker,
who spoke at a market diversification program
Magnet presented in Youngstown. The carmakers
say their suppliers need to enter other markets
“to help balance out their businesses” so they can
remain strong.
The announcement Feb. 23 that General Mo-
tors Co. will restore the third shift at its Lordstown
Complex and hire 1,200 more workers is “great and
wonderful,” but suppliers shouldn’t let that news
“mask the situation,” agrees Greg Krizman, senior
marketing director with Magnet.
During his segment of the program, Walker
outlined Magnet’s detailed approach to helping
companies identify their core strengths, develop new
products or modify those they offer, identify poten-
tial markets, and prepare to enter those markets.
Companies must recognize that increased ex-
pense will accompany diversification. “This is not
a ‘get out of bankruptcy free’ card. They’re going
to have to spend some money to get into new mar-
kets,” Walker says. Companies also must engage in
marketing, and have a “good value proposition” to
demonstrate why customers should purchase from
them rather than their competitors.
“You’re not moving into markets where there is
no competition. You’re moving into markets where
there’s already established competition,” he says.
Setting yourself apart from your competition “is the
only way that you’re going to succeed,” he says.
One growth sector that companies can look to ����������������������������������������
for diversification is the medical-device industry,
but there are important aspects to consider, says
Michael Southworth, principal and senior consultant ����������������
at Southworth & Associates, Beachwood. Medical
devices cover a range of products from simple tongue
depressors to artificial hearts, he notes, and the in- �
dustry is “dynamic, growing and generally stable” ������������������������
as well as resistant to economic downturns. The ��������
industry also enjoys high profit margins ��������������������
However, it is also highly regulated and “not
for everybody” because of liability issues, he adds.
Manufacturers of medical devices are directly regu-
lated by the U.S. Food and Drug Administration,
their suppliers indirectly.
Because of quality standards in place, companies
in automotive and aerospace fields “may be very
well-positioned” to meet requirements of the medi-
cal-device market, Southworth says.
Other potential downsides include lower product
volumes and higher overhead. ����������������������������������������������������������������������������������������������������������������������������
Selling to the U.S. government is another poten-
tial market for companies looking to diversify, says
22 MARCH 2010 The Business Journal


������� ����������������




��������������������������� ��������������������������������
���������������������������� ����������������
The Business Journal MARCH 2010 23


Media Scope �����������������������

Advertising Outlook Up,
FCC Seeks Public Input
Future of Media project With traditional ad dollars down,
media companies are trying to figure
asks how news outlets out ways to increase online revenues.
Another Nielsen study confirms what
serve their communities. you might expect: 85% of Internet
users believe online content currently

s we near the end of the first free should remain that way.
quarter of 2010, the future looks Now on to topic No. 2, the Federal
a little brighter for businesses Communications Commission’s inqui-
that rely on advertising dollars to ry into the future of media and its role

sustain their livelihoods. in providing news and information. At
The Nielsen Co. reports ad spend- a special page on its Web site, Reboot.
ing fell 9% last year, down to $117, the agency
billion. It was actually on pace to is soliciting ideas and votes on what
fall 15% the first policies could im-
half of the year.
A strong fourth
The FCC’s chairman, Julius prove information
and news in the � �������������������������������������
quarter cushioned Genachowski, promises the digital era.
the fall. process will be ‘consistent with The day I �����������������
Who spent and the vital goals of free speech in checked in, one of
who didn’t was as
you’d expect in a a democracy.’
the top vote getters
was ending mega- � �����������������
down economy.
Advertising by automakers and their
corporations own-
ership of media, the submitter of this
dealers dropped 23% last year. Fur- idea contending that powerful media
niture store advertising dropped 7%. owners, such as Rupert Murdoch, � ���������������������������������
And advertising by wireless telephone have disproportionate control over the
services dropped 8%. (Really? That’s
hard to believe.) Department store
content and delivery of news.
Another big vote getter: Restrict, � ������������������������
advertising increased 3% and phar- fine and suspend media outlets that
maceuticals were up 2%.
Now the good news: Before these
promote hate speech, racism and
violence. The person making this sug-
� ��������������������������������
numbers came out, industry analysts
at Barclays Capital revised upward
gestion urges the FCC to seek penal-
ties for corporations and broadcasters
its advertising forecast for all major such as Bill O’Reilly, who was accused
media for 2010. In some cases the of fueling hatred and violence against � �������������������������������
revision isn’t necessarily a positive George Tiller, the abortion doctor who
number, just less worse. was shot and killed. ���������������������������
Barclays estimates advertising will Another called for the FCC to hold
increase 3.5% this year, after forecast-
ing it would remain flat. That’s much
public hearings on deliberate disinfor-
mation and propaganda. True, hate
� ����������������������������������
better than the nearly 10% drop for
2009. Analysts see businesses return-
speech and deliberate disinformation
harms the public discourse, but let’s
ing to advertising at the local and na-
tional levels thanks in part to it being
not forget the First Amendment.
Steve Waldman, who’s spearhead-
an Olympics and election year. ing the Future of Media project,
Barclays now predicts TV adver- pledges to keep the First Amendment
tising will rise 10%, Internet 9% and top of mind. Any time the government
outdoor advertising 6%. Radio, which looks at the media, it must be “very,
Barclays initially predicted would drop very careful,” he says.
4%, is now expected to rise 2.2%. The FCC’s chairman, Julius Gena-
Print publications have been hit chowski, promises the process will be
hardest and while the new forecast “consistent with the vital goals of free � � � � ������������������������
is better, the outlook is still not good speech in a democracy.”
for magazines and daily newspapers, So let the inquiry begin. But be- �������������������������������������
with ad revenue expected to drop 3% ware: A lot of journalists, this one
and 6%, respectively. included, will be watching.
24 MARCH 2010 The Business Journal


Wire Service
If Saving Money Is Key,
It’s Hard to Beat Free
Download software compatible with the commonly used
but relatively expensive Microsoft
programs at no cost. Office, so you’ll be able to share the
documents you create.

lthough some economists see Admittedly, I’m not a Quicken user,
light at the end of the economic but many folks think they can’t live
tunnel, it’s clear most folks will without this personal, small-business
be in penny-pinching mode for some and financial accounting program.
time to come. There is, however, a free alternative
A big expense for small- and me- available at The program
dium-sized businesses, at least if they allows you to track bank accounts,
want to stick to the stocks, income
letter of the law, is and expenses and
software. Having A big expense for small- and works with Linux
to buy a copy of medium-sized businesses, at Source, Windows
Microsoft Word least if they want to stick to the XP and 7 and Mac
or an accounting operating systems.
program used dai-
letter of the law, is software. A new version,
ly by several com- GnuCash 2.3.8,
pany computers can get expensive. works with more systems, but it’s still
One answer to the problem is so- in the testing stage and best left for ex-
called “cloud computing,” in which perienced developers and testers until
We Carry GOJI the software programs are accessed, the stable version is released.

Herbs, Herbs, Herbs!

and the data stored, online. Instead of The most recent stable version,
Dragon Herbs BERRIES sinking money into software licenses 2.2.9, offers double-entry accounting,
and hardware, employees create, edit small-business accounting, scheduled
and save files online; passwords keep transactions, import of Quicken QIF
���������������������������������� data secure and allow safe access by files and more. If you’re not convinced
����������������� more than one user. right away, check out the screenshots
�� ������������������� A number of big players offer cloud and features before you download.
� ������������� computing services to businesses – HP Sometimes, you need to move
� ���������������� and IBM among them. Their services many files at once; for instance, at the
�� ��������� aren’t free, although if your company end of every year, I copy all our photo
� ����������������� is large with lots of computers, us- folders to a special portable hard drive
� ���������������� ing such services can be more cost- (then delete them on our PC) to clear
�� ���������������� effective than buying many copies of out space for the new year’s accumula-
��� ��������������� software. If you’re a small business, tion. And I’m here to tell you it can be
�� ��������������� though, you may want to consider a time-consuming process.
Dermal K Skin another option: Software you can This year, I’m going to try Tera-
Clarifying Cream ������������������������� ���������������

download to as many computers as Copy instead, available at CodeSec-
Heals Spider Ve uises, ������������������ you want at no cost.
, Br
Stretch Markszema, ��������������������������� Natural Admittedly, free programs aren’t as Downloading this will allow me to
Burns, Ec
Psoriasis ������������������� Products for sophisticated or as rich in features as queue up files I want to move or copy
Restless Legg their pricey counterparts (although – much like queuing up files to burn
Syndrome some work every bit as well). Still, onto a CD or DVD – which offers the
�������������� they’re quite serviceable, and when added benefit of letting me choose files
money is an object, it’s hard to beat from more than one location. Click on
����������������������� �������� free. the start button and go; if there’s a prob-
������������� If you need business software lem transferring any file, it’s skipped
����������� ����������������� for word processing, spreadsheets, rather than bringing the entire transfer
����������������������� ����������� presentation graphics and databases, to a screeching halt as can happen with
������������������������������� ���������� take a peek at The drag-and-drop. I can figure out how to
���������������������������������������������������������� ����� software can be downloaded and used fix it when the other files are copied.
as often, and by any number of em-
ployees, at no charge whatsoever. Catch the Business Journal Daily Buzz news-
Also on the plus side, OpenOffice is cast posted at
The Business Journal
Business MARCH 2010 25

Development at a Standstill? Not in Canfield
Township led the county ford Lifestyle Community, just off
Boardman-Canfield Road. “Activity
in residential housing has picked up on both the residential
and commercial end,” he says. “The
starts in 2009. phones are starting to ring again.”
By Dan O’Brien Among the major projects under
way at Westford is the completion

hile commercial growth in of a 20,000-square-foot office build-
Canfield isn’t as robust as ing already 50% leased, Whitman
in recent years, business reports. “By the fall, we should have
owners and developers there say the it filled.”
community draws significant interest The sprawling, 300-acre mixed-use
as it continues a transformation that development is also home to Kenn-
began in earnest five years ago. sington Golf Club, where bookings
New single-family housing starts are up 20% from the same period a
numbered in the double-digits in 2009 year ago, Whitman reports. “When
as other communities struggled. And, we see bookings up on the golf course,
a handful of commercial development it tells us that people are starting to
projects started last year are near spend again,” he says. “There’s been
completion, with more slated to begin phenomenal interest.”
this season. This year will be the first that
All indicators point to year filled Kennsington will operate under a new
with hope for the township and city course manager, Billy Casper Golf,
on the heels of what was a surprisingly Whitman says. The company man-
solid year for businesses. ages 110 courses across the country
“Thank God, they’re all doing and has the systems in place to make
well,” Michal Naffah says of the busi- playing golf more appealing than ever
nesses in his Ironwood Commons. for the customer, he adds. Work is also
The project was developed five years slated to finish on the course’s new
ago as a mixed-use development on grillroom this year; it is expected to
the corner of Raccoon and Boardman- open for business in June.
Canfield roads. In the development As consumer confidence rebounds,
are a Hampton Inn & Suites, three it should also translate into more
restaurants, a fitness center and tan- retail and residential interest, Whit-
ning salon. man relates. Late last year, one of
The Hampton Inn is drawing a size- the development’s first retail tenants,
able number of corporate travelers as Smith Jewelers, went out of busi-
guests, many of them executives from ness. Despite this setback, Whitman
other countries in the Mahoning Val- believes the space could be leased in
ley on business, Naffah says. “We’ve a matter of months. “We’re in nego-
had a lot of business people from all tiations with a jeweler for the Smith
over the world stay here” in addition location,” he says.
to traditional travelers who venture Dave Morrison, Canfield Township zoning administrator, says his community led the county in the And, even in the darkest days of the
into town for special occasions. number of residential housing starts last year with 24 – 21 of them single-family houses. housing slump, Westford managed to
Ironwood’s three restaurants – muster a handful of housing starts last
Ruby Tuesday, Inner Circle Pizza and wood. Three years ago, the couple decided year, Whitman says. “There are a cou-
Bob Evans – continue to fare well and Nevertheless, Naffah says inves- to launch a home-based business that ple under construction and two more
have exceeded projections, Naffah tors’ interest in that site is very high, initially focused on repairing and that just started,” he reports. Demand
relates. “It tells me that the Canfield and reports he hopes to make an an- providing support service for personal for new houses might be slow across
community has really been looking nouncement soon on a new business computers, McDonnell relates. “As the country, but interest in Westford’s
for these types of restaurants,” he there. “There’s also another project the company grew, we expanded our Wakehurst Village – a gated villa com-
remarks. in the works that we’re hoping to an- managed services and now provide munity – is on the rise. “There are 17
The development hasn’t come nounce in April,” he says. a backup and disaster recovery plan villas constructed now,” he says, “and
without hitting some bumps in the Ironwood is just one example of that we’re marketing to small and 32 of the 68 lots are sold.”
road. The recession forced Naffah to the sweeping changes the Canfield medium-size businesses,” she adds. Other work planned for this year
place on hold his plans to develop a community has seen over the last “We’ve seen steady growth and expect includes a new road that extends west
retail center there and begin work on five years. Once regarded as a small, a 20% to 25% increase in business to South Raccoon Road, opening up
a residential phase. bucolic area short on amenities and this year.” another phase of Westford, Charles
“When the economy takes a turn, service establishments, the Canfield of Within two years, McDonnell re- Gate. “These are single-family homes
the retail and housing sectors will also today is quickly becoming a desirable ports, the company expects to secure with larger lots” that range from
turn again,” Naffah says. “We have a place for people to live and build their office space somewhere in Canfield to three-quarters of an acre to 1.5 acres,
lot of calls related to villas and condos, businesses. accommodate its growing customer he reports.
but that market’s at a standstill – it’s Mary McDonnell, director of busi- base. “All indications are that it is going
too risky.” ness development for Canfield Com- “There are a lot of positive things to be a good year,” Whitman notes.
And, last summer, the restaurant puters, says she and her husband, going on,” reports Chuck Whitman, “As banks start to loosen up, it’s sure
Harry & Jean’s closed, leaving empty George, relocated in 1999 from the president of CTW Development to help.”
a nicely furnished building at Iron- Washington, D.C., area. Corp., which spearheaded the West- See DEVELOPMENT, page 26
26 MARCH 2010 The Business Journal


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Development continues in Westford Lifestyle Community just off Boardman-Canfield Road.

Development: Not Standing Still

From Page 25 Jim DiCioccio, president of DiCioccio
In 2009, Canfield Township led Construction Ltd. The development
Mahoning County in residential builds houses that range between
housing starts with 24 – 21 of them $170,000 to $300,000, he says – a
single-family houses and three villas, range that appeals to homebuyers in
reports Dave Morrison, township the area. “We sold two this past week-
zoning administrator. Growth at de- end,” he reports, “and we have four
velopments such as Westford “have already sold in our next phase.”
just been incredible,” he notes. “Five What sets this development apart,
years ago, none of it was there.” DiCioccio says, is that it combines the
A year earlier, the township re- best attributes of condominium living
corded 35 housing starts, 25 of which with single-family home develop-
were single-family dwellings, he says. ments. “You own your own home and
“We’re holding our own, but starts lot,” he says. However, those living in
were down in 2009.” During the the development have the option of
high-growth mode six years earlier, paying an association fee that could
the township was averaging about 75 cover maintenance and other auxiliary
housing starts annually. work to the property.
Foreclosures as well have tailed Summer Wind will also include a
off, Morrison says. “Last year there new clubhouse with an indoor pool
were just 12” compared to 2008, to be constructed by this summer,
when the township saw 60 bank DiCioccio says. Plans call for tennis
foreclosures. courts, basketball courts and an out-
Among the top prospects for resi- door swimming pool for residents.
dential development in the township “We started this development a year
is Summer Wind Private Estates, at and a half ago, and we have 20 houses
Turner and Gibson roads. occupied,” he boasts. “We’ve been
“We’re the only game in town,” says fortunate from the get-go.”
The Business Journal
usiness MARCH 2010 27


Michael Humphries, principal at Yurchyk & Davis CPAs Inc., Matt Sutton, owner of Yolo Grille and Wine Bar, 231 S. Canfield- Business at Bernard-Daniels Lumber & Home Center, 250
3701 Boardman-Canfield Road, reports the accounting firm’s Niles Road, says his decision to move his business to Canfield Railroad St., is on the move, says its marketing manager,
corporate clients say banks are still tight with lending, but from downtown Youngstown about a year ago has worked out Mike Herrmann. “It’s booming,” he notes. The company draws
other sectors, such as housing, seem to be picking up. for the best. “There’s a lot of opportunity here,” he says. a steady mix of contractors and do-it-yourselfers.

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28 MARCH 2010 The Business Journal



The Business Journal
usiness MARCH 2010 29


MultiMedia Farms Inc., 17 Main St., has seen the market improve this year, says Clare Neff, who Jim Rosenberg, president of Neo3, a software sales and support firm at 196 N. Broad St., says
co-owns the company with her husband, Bruce. MultiMedia Farms has contracted events such 2009 “was a solid year” for his company and begins 2010 marking Neo3’s 10th year in business.
as the Daytona 500 and Disney Marathon. From left are Neff and Megan Christensen. Neo3 sells and provides support services for Sage accounting software. It employs five.
30 MARCH 2010 The Business Journal

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32 MARCH 2010 The Business Journal

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The Business Journal MARCH 2010 33

Roundtable Reveals Bankers’ Dilemma
Congress wants banks to make Robert H. Kempe, senior vice president and team
leader for the Mahoning Valley Region of First Place
Are there different products that you’re steering busi-
ness customers toward? Are there new products you’ve
more business loans while regu- Bank: There’s no question greater scrutiny is placed
on credit and loan applications than probably there
introduced or modifications of existing products so
those who used to qualify can continue to qualify? Are
lators demand tighter standards. ever was. you involving the Mahoning Valley Economic Develop-
What’s missing is that banks aren’t in a very ag- ment Corp. and U.S. Small Business Administration to
The Business Journal: Small-business owners complain gressive growth mode. So you don’t have a lot of a greater degree?
that they can no longer get the credit they need. They bankers out there [pursuing new business].
say that lending criteria are too high; they’re upset [To] folks saying that lending criteria are too Kempe, First Place Bank : We’re putting a greater
because they can no longer borrow or that their lines high, the lending criteria is the same as it’s always emphasis on the Small Business Administration’s
of credit have been reduced, that you’ve made it too been. But when there’s a lot of competition, banks Seven-Day Guarantee Program.
tough to borrow. tend to back off on some things they normally The stimulus legislation [American Recovery and
wouldn’t because they want Revitalization Act] passed
Mark Graham, senior vice president and senior the business, because they’ve last year provided for up to
loan officer, Farmers National Bank: We’ve contin- got these aggressive growth Mark Graham a 90% guarantee to banks up
ued to follow the same basic lending practices and numbers [to meet]. to$2 million and eliminated
lending criteria. And we’ve always based our lending You don’t have that any- ‘We continue to the fees.
practices on character, capital, credit capacity and more. And you don’t have grow our loan Fees were a huge obstacle
collateral. that irrational lender out in those programs, because
there trying to grow by 20%,
portfolio – we the origination fee could be
In this environment regulators want to see more
supporting documentation, such as tax returns, making it tougher for the rest experienced up to 3½% with the maxi-
personal financial statements, rent rolls. of us to make loans.
[Another aspect over-
more than 10% mum [being] $53,000 to a
borrower in that program.
They’re paying a lot more attention to the global
situation of the borrower. But we’re ever mindful of looked is that] business own- loan growth in That was a big number;
the adverse effects of tightening credit in a recession- ers have to understand that 2009.’ it’s been eliminated. At First
ary period. And as Farmers has shown, we continue they’ve got to take the same Place, we’ve got a very strong
to grow our loan portfolio – we experienced more risk as the bank. They’ve got initiative to increase our
than 10% loan growth in 2009. And we hope that to put their capital at risk. SBA lending because it’s a
continues. And that’s foreign to a lot of business owners [be- win-win.
cause] they haven’t had to do it in the past. The bank gets a 90% guarantee. Granted you
Dennis E. Linville, senior vice president, The have to do your documentation correctly, and you
Middlefield Banking Co.: We’ve continued to support Peter J. Asimakopoulos, executive vice president have to follow [SBA] procedures, which can be very
our customers as we always have. Our bank is new for small-business banking, First National Bank of tedious.
to the Mahoning Valley. We opened up our office Pennsylvania: … There was no change in our under- But the borrower gets a loan on terms I would
in Cortland about a year and a half ago. And we’ve writing criteria We’re really doing business as usual. consider nonconventional: You can go up to 10 years
been well-received. We’ve picked up new custom- Our asset quality has remained strong throughout on working capital; 10 to 15 years on equipment; up
ers from some contacts I’ve had, from people who this downturn. to 25 years on real estate. That’s a win.
have heard good things about Middlefield Bank and So we’ve continued to approach everything as we The borrower gets a longer amortization, a bet-
came in to see us. always have. And that’s put us in a very good position ter cash flow. They can refinance some loans or
But I don’t know that we’ve tightened our credit today. We saw 6% growth in ’09 in our commercial consolidate loans and recapitalize their business.
standards. We have insisted on more documenta- loan portfolio. We brought in 115 new relationships Hopefully, business is coming back.
tion. We realized that our loan file needed to be of significant size. Maybe they’ve exhausted all their working capital,
better supported with financials and background and As Mr. Kempe mentioned, some banks did some just surviving. We can refinance, restructure their
historicals. We pay a lot of attention to cash flow. irrational things that were competition-driven. But balance sheet, give them more favorable terms than
And collateral is something you look at a bit more if you stayed the course, you’re in a good position conventionally. And we get the guarantee.
closely than we might have in the past. Our loan today to capitalize on the opportunities out there. That’s a win-win.
growth in the past year has been very good, too. So And we continue to lend money out to the com-
we’re looking forward to 2010. munity. Asimakopoulos, First National Bank: … On the
deposit side, a little over a year ago, we looked at
what we offered small businesses. We saw it was very
Who’s Who, Participating in the roundtable on commercial lending held Feb. 16 at the Holiday Inn-
Boardman were Peter Asimakopoulos, executive vice president for small-business banking
similar to what we offered our larger commercial
Said What: at First National Bank of Pennsylvania; Mark Graham, senior vice president and senior
loan officer at Farmers National Bank; Robert Kempe, senior vice president and team
So we revamped our business checking for a
smaller business. The number of criteria is a lot less
leader for the Mahoning Valley region of First Place Bank; and Dennis Linville, senior vice president, Middlefield and the activity [is nowhere the same].
Banking Co. We also attached treasury-management capa-
Dennis LaRue, copy editor of The Business Journal, led the questions and edited the verbatim transcript prepared bilities for the smaller businesses. Banks typically
by Tracey L. Berarducci, certified court reporter at David R. Burton & Assoc. Tony Mancino took the photographs. went after larger commercial customers for treasury
Also asking questions was publisher Andrea Wood. See ROUNDTABLE, page 34
34 MARCH 2010 The Business Journal

Roundtable: Commercial Lenders Discuss Their Dilemma

From Page 35 customers. How are you trying to work with them?
management or cash management. As a smaller bank, we sometimes [enter loan] Linville: The worst thing we are hearing from
We saw a niche that needed to be filled on the participations. In other words, some of our custom- our customers is their cash flow issues. They’re not
small-business side. So we’re very proud that have ers [present a larger exposure than we’re comfortable able to service their debt.
those products out. with]. Throughout the state we’re part of a network Their [accounts] receivables have slowed down.
On the loan side, our [entire bank] is trying of banks that are willing to share in the risk on larger They may need some help there. We have long-term
to cater to the small businesses through business loans. We’ve done that with strong loans outside relationships with these customers.
development officers in the field and training the the area. We know that when things improve, they’ll be
branch manager so that the people they see regularly improving, too.
at their branch can assist them. That will make it a We assume you’ve been holding very close conversations There are a few stopgap measures we need to
lot more convenient. with many of your customers who used to qualify but no take in the meantime to walk them through and
And we’ve steamlined our application – we have longer do. What are they telling you their needs are? CONTINUES NEXT PAGE
a Web-based app[lication]. The branches are doing
a lot of the smaller loans. We doubled our applica-
tions last year. …
We are a preferred lender for the SBA. So we don’t
have to go through a [lengthy] process; our under-
writers can approve an SBA loan without having to
go directly to the SBA.
So there’s a big savings in time. You still have
to meet the [SBA] criteria. But we can sign off on Succeed. Lead. exceed.
Another area where we feel we have an advantage,
a niche, is through the American Recovery and Rein-
vestment Act, where the SBA provides a 100% loan
guarantee. We’ve done quite a few of these.
These have been challenging to put through.
We’re catering primarily to our customers [who can
benefit most from] that particular program.

Graham, Farmers National Bank: We also have

used some of these programs. We’ve had a long
relationship with MVEDC. All of our lenders are
educated in the process.
A program that we had a lot of success with is the
Ohio Grow Now through the state of Ohio, which is
a modification of the old Linked-Deposit program
[begun by former Ohio Treasurer Mary Ellen With-
erow]. We originated approximately $12 million in
small-business loans under this program. The success of your business is just as important to us as it is to you. We are dedicated
It’s relatively easy to apply for. It offers a subsi- to providing you with the personalized financial expertise you need and the exceptional
dized rate. service you deserve. Our goal is to exceed your expectations . . . every time!
Some of the smaller loan amounts are easy to
qualify for if they lead to job creation or retention.
The borrower can get as much as a 3% discount Contact one of our local business development team members today!
on the rate. We experienced a lot of growth in that
Business Checking & Deposit Services Business & Commercial Loans
Linville, Middlefield Banking Co: We’ve taken
the two-pronged approach, too, on the deposit side Matt Connelly l 330.507.8589 Nick Berardino l 330.742.0224
and the loan side.
We had to redesign our business when we started
Bob Swauger l 330.856.1940 Stan Magielski l 330.742.0641
in Trumbull and Mahoning counties. We didn’t have
a product like that beforehand. It’s been very suc-
cessful in bringing in customers.
We also began offering the merchant capture to
some of our larger volume customers. It’s been well
Merchant capture [is the process that] allows the
business owner to scan the image of a check they
receive at their computer, to image the check at their
business, and transfer the images to our bank to get
same-day credit on those deposits. They don’t have
to make a trip to the bank.
Subsidiary of United Community Financial Corp. Equal Housing Lender Member FDIC
We’ve also redesigned some of our loan products
to better accommodate existing customers and take
care of [new] customers that we’re seeing from other
banks, that have not been treated as kindly as they
were used to being treated. They’re good-quality
The Business Journal MARCH 2010 35

stay with them. they may find themselves at 100-plus percent loan among your customers that at least the worst is over –
We’re in closer contact with them now because to value. As you’ve seen with residential real estate, even if they don’t think the good times have returned?
we share their concerns about their financials, their they’re going to owe more money on the property
progress and other things they face. than it’s worth. Asimakopoulos: As a community we should see
So if one thing has come out [of this recession] So this is a huge issue for our country but not a lot of positives: V&M Star Steel, [O.A.O.] Severstal
it’s that you build deeper, closer relationships with so much locally. Because we didn’t see the [falling Steel in Warren, with General Motors at Lordstown,
your customers. Because by spending more time values] a lot of other areas experienced. with The Youngstown Business Incubator, with
with them, you really get to know them and help We still have issues here because values are driven Youngstown State [University]. We can make a long
them. by comparable sales data. And values are down. list of things that are positive.
Comparable sales are As to the extent that customers are feeling that,
Graham: Dialogue with your down. and bankers are feeling that, everybody feels that
customers is especially impor- Robert Kempe A lot of times ap- at least we’ve leveled off. We’re looking at greener
tant in this environment. Most praisers look at short pastures and bluer skies.
of our customers understand the ‘Roughly sales. So it’s still very We can start accentuating all the positive things
economy that we’re in. $1.4 trillion difficult to get a com- happening in this community. Borrowers and busi-
Not only are you talking more
with the borrower, you’re engag-
in commercial mercial real estate loan
in some areas, particu-
nesses are starting to realize that.

ing in more dialogue with their real estate larly the investment real Linville: There are strong industries and weak
CPA, to work together. loans come estate area. industries out there. We tend to gravitate towards
the strong players, whether the industry is weak or
If two years ago, most of your cus- due in the Graham: I would strong. We’ve identified some of those.
tomers were being paid within 30 next five agree. … From the per- Some trucking companies are looking to expand
days, how long is it taking them to spective of the regulator, right now. They’re buying tractors; they’re buy-
collect their receivables today? years.’ [he expects] to see more ing trailers. Things have turned slightly for them,
stress in the banks’ com- although they’re still cautious. But they’re doing
Graham: Good question. It varies. But our cus- mercial real estate portfolios. better.
tomers’ customers tell us they have to extend terms, We’ve [all] seen that. [Farmers National] is ever We see the same thing in the long-term care
extend contracts. Payment is slower. It’s all part of mindful of that. But we all want keep lending. industry. There’s expansion there. …
the environment. And that impacts the borrower. It’s All those factors will impact how we move with And in the hospitality industry. They faced the
taking them longer to collect what they’re owed. lending to owner-occupiers. same downturn as everybody else. They see this as a
good opportunity to improve their properties, even
What is the health of the commercial real estate market? What are your customers using the funds they borrow if occupancy was down. They can take rooms out
What has been your experience? for? To what extend do they need funds for day-to-day of service; they can do the upgrades.
operations? Equipment? Commercial real estate?
Asimakopoulos: This area never saw the booms Kempe: [Our customers are] starting to see im-
that other areas did. So our lows weren’t quite as Graham: Well, you can’t put everyone in the same provement. But, we have a long way to go. Recovery
low. category. is going to take a lot
There’s been, over the past couple of years, quite Some customers have re- longer this time.
a bit of vacant commercial space. But it hasn’t grown mained healthy and prosperous Pete Asimakopoulos Companies have
substantially. And as we start going in the other throughout. Their needs are the learned their lessons,
direction, we’re not likely to see the [rebound] same that they’ve always been: ‘This area and it’s been a good
that some other parts of the country are going to Operating lines of credit for ex- never saw thing.
experience. pansion purposes, equipment. They’ve gotten lean-
So I’m still optimistic that commercial real estate Others are looking to refinance the booms er. They found that they
will recover, but I don’t think it will be as impactful because as their cash flows have that other can still operate with
here. But the bank certainly still has cause for con- been impacted, they have the fewer employees and
cern. It’s looking at the portfolios, seeing what the same historical needs. areas did. less overhead.
cash flows of the projects are, seeing the strengths So our lows I anticipate that as
of the guarantors. It seems so tempting to think that recovery takes hold,
Again, there’s a need for constant communication if you are having trouble collecting weren’t quite they’ll return to their
with the borrowers and seeing their tenants’ ability your receivables, you just go to the as low.’ earlier revenue levels
to pay rent or reduced rent. bank and borrow enough to tide and that they’ll do it
yourself over, so you can continue to operate day-to-day. with less employees and less overhead.
Kempe: I agree with Pete that this area hasn’t Did that happen? Or are we over that? They’ll be stronger and better prepared [for the
seen what the rest of the country has seen, which next downturn].
is a good thing. Nationwide this is the next bubble. Asimakopoulos: That still exists in situations in
Without question, commercial real estate is the some areas and in some industries where working The economists we’ve talked to think that 2010 is
next bubble. capital and cash flow have been depleted. They’re going to continue to be a year of sustained recovery.
Roughly $1.4 trillion in commercial real estate looking towards their bank for getting a cash injec- For one thing, at least half of the stimulus funds from
loans come due in the next five years that are going tion. the American Recovery and Revitalization Act are still
to have a hard time finding [refinancing]. [The recession has] also been an opportunity unspent, still in the pipeline. It’s 2011 they’re not so
These loans are going to mature, and the lenders where companies that thrived in this environment optimistic about. What is your sense as to the sustain-
who holding them now, for the most part, are not are looking at opportunities to expand because ability of the recovery and your customers’ continued
going to want to want to keep them. So [lenders] real estate costs less. Equipment either costs less comeback?
are going to ask [borrowers] to refinance [what they or can be financed at lower rates. Borrowing rates
owe]. There aren’t a lot of places [borrowers] can are low. Linville: The key to recovery in our area is em-
go right now. Companies doing well see opportunities to take ployment. And tough to deal with. A lot of these
That, coupled with the fact that values have fallen the next step toward greater profitability. companies have gotten pretty lean. And it’s at the
15, 20% in some areas, and even more, in Florida, expense of their employees. And once they realize
Arizona and Las Vegas. Since we are now officially in recovery (even though it that they can operate with fewer employees, I ques-
These folks are going to try to refinance. And doesn’t feel like it), to what extent do you sense optimism See ROUNDTABLE, page 36
36 MARCH 2010 The Business Journal

Roundtable: Need to Meet Greater Capital Requirements?

From Page 35 quite frankly, you’re going to listen to your regula- other banks to participate by taking $4 million or
tion – when they expand – whether they’re going tors. Because your regulators control your destiny. $5 million shares.
hire back all of these employees. That’s a tough What First Place has done [is accept $73
issue. … million]from [Treasury’s] Capital Purchase Program. Graham: The major focus of the regulators has
Employment is going to be the key. We’ve lost We’re deploying that. been capital. And we’re not exempt. The regulators
some major employers. Those still here have down- And then we’re looking at some of the areas where have continued to refine their definition of “well-
sized. we traditionally lent but are not anymore. A good capitalized.”
example is loan participations. A bank is a business. It should have a strong bal-
Some of your customers tell us that they could get loans, We’re limiting the number of participations we’re ance sheet. A borrower’s ability to borrow, our ability
except that the banks now have doing. We’re saving our to lend, is driven by our capital.
these excessive capital require- capital for our exist- We’re well aware of the challenges. And we’re
ments. So if you could address, to Dennis Linville ing clients in situations committed to continuing to lend.
what extent (if at all), your need to where we can establish
meet certain capital requirements ‘The worst new relationships with Do you foresee the regulators increasing the definition
has affected your ability to lend? thing we companies here in Ma- of “well-capitalized”?
honing Valley.
Kempe: It’s a big issue. Pete are hearing Graham: Yes.
and I were talking earlier that from Please explain what a loan
you have the politicians telling participation is. Linville: Yeah, they’re in the business of keeping
the banks we need to lend more our custom- banks strong. That’s their focus. There have been so
money. ers is their Kempe: A bank ex- many, so many failures. [Editor’s note: The Federal
But then you have our regu- tends a large credit to Deposit Insurance Corp. reports three banks failed in
lators telling us that we have
cash flow a customer but doesn’t 2007, 25 in ’08, 140 in ’09 and 15 so far this year.]
to meet higher capital require- issues.’ want to keep the en- It’s their responsibility to make sure that the banks
ments. tire exposure. So it ap- remain strong and able to serve this economy. ...
In our case, 10% capital was considered well- proaches other banks and asks if they want to It’s a difficult balancing act for all of us.
capitalized. And the Office of Thrift just said that participate in the loan, to take a share of the loan.
bar needs to be raised to 12. It’s very common. Kempe: Let’s face it: there’s no incentive for a
The only way you get there is to stop making The bank that originates the loan is called the regulator to not be conservative when it comes to
loans to raise capital. lead bank. rating a bank right now. They are going to err on
You have two factions in the same town, Wash- Maybe it’s a $50 million loan. The lead bank the side of caution.
ington, D.C., saying two different things to you. And will keep the majority of it and invite three or four CONCLUDES NEXT PAGE

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The Business Journal MARCH 2010
116760.BizChecking.AD.12.09 2/12/10 12:45 PM Page 1 37

Asimakopoulos: Another way to address is the

issue of capital – and F.N.B. Corp. did it last year
– was issuing a stock, common stock, sale. We raised Is your business lost in the banking shuffle?
$100 million.
We took the opportunity where we were all
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F.N.B. had a very strong balance sheet. But our
stock was down because of the industry. So we took
a look at that and said, “What a great opportunity to
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raise capital! We have a great story to tell.”
The [banking industry] analysts know our core not just another
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The Business Journal MARCH 2010 39

Solar Market Energizes Northern States

Youngstown company invents
racking system that speeds the
installation of solar panels.
By Dan O’Brien

s the economy ground to a halt last year and
manufacturers were forced to place tens of
thousands of employees on layoff, Northern
States Metals Inc. saw the opportunity to grow its
business into areas unthinkable a decade ago.
Northern States Metals’ latest venture is manu-
facturing frames for solar panels that could be set
up in a matter of minutes, says Robert Voytilla, chief
financial officer. The company has added two new
processing lines and hopes to bring two full-time
shifts to the plant by this summer, which means
another 25 employees.
“We had a record year in 2009,” Voytilla says.
“Our capacity has increased by 100%. The real prob-
lem we’re going to have in the future is parking” as Youngstown State University’s Yogendra Panta, Martin Abraham and Ganesh Kudav join Robert Voytilla at a press event Feb. 24
the company grows and adds more employees. where Voytilla presented YSU with a 16-square foot cross-section wind tunnel. Northren States Metals has tapped the brain power
The key was to develop a racking system that at YSU’s engineering department to help solve a manufacturing problem. Read the story below.
could be easily deployed in the field, saving time Northern States Metals’ is also involved with simi- in the time it would take to erect 10 traditional solar
– and in some cases, hundreds of thousands of dol- lar solar installations in New Jersey, Pennsylvania, frames, 150 could be completed with the FlexRack
lars – for customers. “We recognized costs had to Texas, Arizona and California, Voytilla says. product.
come out of this industry,” Voytilla says. The racks are assembled and fabricated in the “There’s simply no comparison in the market to-
Northern States’ answered with the Solar Youngstown plant, mostly using materials and day,” Voytilla says, adding the company is developing
FlexRack, a steel and aluminum skeleton system equipment sourced from companies in Ohio. Once a smaller, roof-mounted version of the product.
for solar panels produced and fabricated at the com- the product is assembled it’s then shipped to the site. Production and delivery speed is critical. “You’ve
pany’s plant on Intertech Drive at the Salt Springs The racking system is so efficient, Voytilla says that got to be extremely nimble,” he says.

Moment in Sun for Company, YSU

Road Business Park.
The system allows a user to set up an entire solar
panel array within three minutes, as opposed to an
average of 45 minutes for other systems, Voytilla By Dennis LaRue
explains. “We took all we learned from traditional Northern Metals designed.
manufacturing and applied it to this product,” he
Northern States Metals started in business 35
years ago and manufactures components used in
everything from surgical instruments to Venetian
H ow a problem is defined determines its
solution, the chief financial officer of
Northern States Metals said Feb. 24 as
he announced his company’s partnership with
Youngstown State University.
“The brain power right here at YSU did it,”
Voytilla, thanking former Engineering College Dean
Cynthia Hirtzel, the dean of the College of Science,
Technology Engineering and Mathematics, Martin
Abraham, engineering professors Ganesh V. Kudav
blinds. The company employs 81 production work- In the fluids laboratory of YSU’s mechanical and Yogendra Panta, and Mark Harvey, a junior ma-
ers and another 24 in its offices. and industrial engineering department, the CFO, joring in mechanical and industrial engineering.
The idea to create the new racking system came Robert Voytilla, presented the university with a 16- Where competing designs take four people as
about because the company was manufacturing square-foot cross-section wind tunnel that allowed long as 38 minutes per panel to install, a Solar
small mounts for solar panels, Voytilla says. Building his company to solve the problem of keeping solar FlexRack can be unfolded at the site and installed on
on the success of this business, the company opted panels from being blown away by gusts of wind. posts by three people in less than 90 seconds.
to explore developing additional products for the The solution lay not with the panels but what is Because the panels had to be tested in wind
solar industry and pumped about $1 million toward used to keep them on the roofs so winds don’t move tunnels as recorded by computer simulations, the
new research and development. them, Voytilla explained. In this case, winds of up to engineers and Northern States Metals staff had to be
Then, last summer, the company launched its 130 mph will blow around the panels, deflected by sure the simulations would hold up. The wind tun-
Solar FlexRack product and shipped 13,000 of these the quarter-circle Solar FlexRacks that hold them. nels created gusts of up to 34 mph. Northern Metals
racks for a project in Ontario. With a $77,000 research grant to YSU, Northern designed the Solar FlexRacks to keep the panels in
“The nice thing about this unit is that it’s not big, States Metals studied the problem anew, Voytilla place in wind of as high as 130 mph.
heavy or cumbersome,” says Tom Hughes of Sullivan related, and the expertise of YSU engineering pro- A common standard for tall buildings is the ability
& Sons, Ltd., Ottawa, who oversaw construction of fessors and students proved invaluable. Hence, to withstand winds of up to 90 mph in three-second
the solar farm, the third-largest solar array in North Northern States Metals donated the custom-built bursts. With the support of YSU, the company has
America and the largest in Canada. wind tunnel to the university. It replaces the one- designed a configuration that allows Solar FlexRack
“I don’t see anything out there that has a product square-foot tunnel in the lab. arrays to endure sustained winds of 110 mph.
as easy to install as the Solar FlexRack,” he adds. “We saw tens of thousands of solar panels,” Voyt- The Solar FlexRack “drives down the cost of
Voytilla says the company expects to churn out illa recalled. As they studied how to keep them on installation,” Voytilla said, saving the entity that in-
“tens of thousands” of these systems each year as roofs – they couldn’t fasten them into roofs because stalls them thousands of dollars in time and labor.
demand for solar energy rises, and the costs to de- that would break the weather seals – it stuck them Last year, Northern States shipped enough
ploy these systems decrease. that the panels needn’t be redesigned. FlexRacks to hold 25,000 solar panels. So far this
Just this year, Northern States has received orders How they were held down held the answer. The year it has shipped an order to Texas to hold 5,000
for 25,000 units, Voytilla reports. flat panels needed the Solar FlexRack that YSU and solar panels, and one to Canada to hold 20,000.
40 MARCH 2010 The Business Journal

Third Shift at GM, Third Shift at Suppliers

‘Lordstown is Ground the complex begins turning out the third shift at Lordstown, which is ex- attention in North America.
Cruze in August. pected to pump another $47 million in Reuss said full production of the
Zero for the company “We’ll also have to increase to a payroll into the economy, and generate Cruze could hit 300,000 units a year.
and the country.’ third shift,” Babb said. His company,
which employs 25 hourly and six sala-
$470,000 in local income taxes and
$1.4 million in state income taxes.
Recent events such as the massive
recall of Toyota’s small cars – often
By Dan O’Brien ried workers, supplies the front and The third shift will bring employ- regarded as the chief competitors
rear fascias for the Chevrolet Cobalt ment at the plant to 4,500 workers, for the Cruze – had no effect on the

ast year at this time, Clark and is gearing up to do the same for Reuss told employees, community company’s decision to add the third
Babb was worried. Business had the Cruze. When GM’s new product leaders and elected officials gathered shift, he said. “We’re going for the
plummeted by two-thirds and hits the streets, he expects business at the complex for the announcement. best product and we’re going to build
just a handful of workers remained to increase by one-third, making it Included in the 1,200 workers are it here in the United States and be
at Jamestown Moraine, a Youngstown possible for the also 70 salaried profitable at it.”
company that provides sequencing company to hire The complex has already built employees needed The Cruze launch this summer
and light assembly services for General another 10 to 12 300 Cruzes as it simultane- to man the third means additional investment in GM
Motors Co.’s Lordstown complex. people. shift. plants across Ohio so they can support
“We were concerned as to whether Though these ously winds up production of “Lordstown is the vehicle, Reuss said. GM’s Defiance
we would be able to remain in busi- aren’t huge job the Cobalt. Ground Zero for Foundry is to produce engine blocks
ness,” said Babb, the plant manager numbers, James- the company and for the vehicle’s 1.4-liter Ecotec turbo
at the company’s Meridian Road site. town Moraine is just one example the country,” Reuss declared, his engine, GM’s Parma Metal Center will
“You could’ve flipped a coin” to de- of the many automotive suppliers, remarks often interrupted by enthu- stamp 49 different components for the
termine his company’s fate, he noted, auxiliary manufacturers, and small siastic applause. Cruze, while the automaker’s Toledo
underscoring the precarious state of businesses that stand to gain as soon GM is banking on the Cruze to Powertrain Center will produce trans-
the domestic automobile industry and as the vehicle is launched. “It’s a good lead the way in transforming the au- missions for the product.
GM itself. stroke for all of the suppliers in the tomaker. The company is so confident Since July, GM has announced
All that changed Feb. 23, when area,” Babb said. of its success that it opted to add a more than $1.4 billion worth of new
GM North America President Mark Small and large businesses, local third shift to Lordstown even before investment in North America, repre-
Reuss drove a Chevrolet Cruze from and state governments, and the Ma- the first automobile is sold in North senting 5,515 new jobs, Reuss said.
Detroit to the Lordstown plant and honing Valley economy stand to reap America. GM has pumped more than $500
announced the company would add a long-term benefits from the Cruze “Think about hybrid performance million – $351 million in Lordstown
third shift and 1,200 jobs here when launch and the reinstatement of the without a hybrid price tag,” Reuss alone – to retool plants in Ohio and
said of the fuel-efficient Cruze, which Michigan to help launch the Cruze.
is expected to reach 40 miles per gal- Among the renovations at the plant
Since 1965 lon on the highway. “We’re confident are the development of an entirely new
they’re putting the third shift on be- body shop in what was the fabricating
cause we have confidence in this car. plant, which is being equipped with
We have a game-changer here in terms 800 robotic systems.
of fuel economy.” Add to GM’s $500 million invest-
GM said that engineers have logged ment the 18 other Tier 1 suppliers in
• Executive Search & Recruiting more than four million miles in qual- the Mahoning Valley and across Ohio,
ity and durability testing for the Cruze and the ripple effect becomes even
• Outplacement: Individual or Group worldwide. more pronounced.
• Temporary Staffing, Leasing & Payroll Services Following his announcement, Jamestown Moraine’s Babb said his
• Financial Services: Benefits & Pensions Reuss told reporter that in the over- business involves light assembly and
seas markets where the Cruze has sequencing for parts manufactured by
5083 Market Street • Youngstown, Ohio 44512 been launched, it is selling very Norplast, a plastics company that pro-
330/ 788-4001 • FAX 330/ 783-3966 • • well. Since January 2009, more than duces the front and rear fascias. “Our
100,000 units have been sold, and GM business is all just-in-time,” he said.
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is betting that it will draw the same See LORDSTOWN, page 42

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The Business Journal MARCH 2010 41

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42 MARCH 2010 The Business Journal

Lordstown: Third Shift at GM, Third Shift at Suppliers

From Page 40 Donahoe said. Those workers would willingness to step up to the challenge. Jack Norling, a member of the Cru-
“We need to be located 20 minutes also be trained for first and second “It’s a team effort, and good things ze’s build team, said the atmosphere in
from the plant.” shifts; the plant would then kick into happen. It’s a great day.” the plant is “very upbeat” and rumors
Full production of the Cruze on three full shifts in “a couple of weeks” Green said all of his membership is abounded that the Lordstown com-
three shifts could amount to 300,000 after that. now back to work, which he attributes plex would win an upscale Buick to
units per year, which means 600,000 The plant should produce about to the launch preparation under way build or a crossover vehicle based on
parts annually for Jamestown. “It 300 vehicles in July and another 1,000 at the fabricating plant and the new the same platform of the Cruze.
takes eight hours from the time we get or so during August. By September, body shop. “Every week we’ve had The plant has the flexibility to pro-
a broadcast from the plant until it’s on production should be hitting full about 20 folks transfer over to the duce seven different styles from the
a new vehicle,” he noted. stride, Donahoe said. body shop, so our membership will same platform, Donahoe said. “Cur-
Other local suppliers include Com- About 330 members of United Auto continue to grow and the third shift is rently, all we’re going to is focus on
prehensive Logistics in Austintown, Workers Local 1112 still on layoff will like icing on the cake for us.” the Cruze. We’re going to be building
and Magna, in Lordstown, which pro- be called back to work, he continued. Workers at the plant hailed the an- more than 300,000 units,” he said.
vides seating systems for the Cobalt Another 700 workers would probably nouncement as an important step for “There’s always room for another
and the Cruze. come from other GM locations. the plant and the Mahoning Valley. product,” laughed Local 1112’s Gra-
Key to making the launch a success “It’s been a roller coaster ride,” “I think we’re able to compete, if ham, but he emphasized that all at-
is to bring the third shift on gradu- Donahoe said, as he reflected on a dif- not lead,” noted Willis Johnson of tention is on the Cruze. “We want to
ally and train these new employees ficult 2009 that saw the plant virtually UAW Local 1714 and chairman of the make sure when that car comes to the
on building strategies for the Cruze. shut down during the summer as GM union’s education committee. Johnson end of the line, that it’s 150% pure.”
“This is a process we go through that’s drove toward bankruptcy. was placed on layoff for seven months The Cruze should curry broad
very meticulous to bring our work During the summer of 2008, Lords- and called back last August. “It’s very favor among consumers, said Diana
force on line with high skills to build town added a third shift to answer exciting,” he said. Tremblay, GM’s vice president of
a high-quality car,” said Lordstown skyrocketing demand for the Cobalt, Dave Snyder, a GM Lordstown manufacturing and labor, and a native
plant manager John Donahoe. only to have that shift abandoned employee of 41 years, said he’s excited of Austintown. “We think the market
The complex has already built 300 when the economic crisis hit. Then, about the Cruze coming on line and is going to love this vehicle. It’s got the
Cruzes as it simultaneously winds the second shift was terminated when preserving the future of Lordstown. features of a mid-size, the amenities of
up production of the Cobalt, he said. demand collapsed. The second shift “I want to see the younger generation a mid-size, but its got the efficiencies
The first hires – team leaders – should was reinstated last October. coming out here and getting jobs and of a small car.”
be called back this month, and then Donahoe praised the work and raising their families.” And, just as important, she said,
gradually build up through July. cooperation of UAW leaders Jim Gra- Still, others were hoping that Reuss “We’re going to make money.”
“After the July 4 holiday week, ham of Local 1112 and Dave Green of would bring even bigger news, such as
we’ll have third-shift members here,” Local 1714 for their cooperation and a second product for the plant. Maraline Kubik contributed reporting.

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The Business Journal MARCH 2010 43

GM Lordstown Cruzes to Third Shift

The General Motors Lordstown Complex is “ground zero” for recovery of gathered at the plant for the press event. The third shift will mean another 1,200
GM and the country, the president of GM North America, Mark Reuss said Feb. jobs at the plant and bring total employment to 4,500, he said.
23 as he announced the launch of a third shift at the plant. Reuss said response to the Cruze in Asia and Europe has been everything the
Anticipated for several days, Reuss’ announcement was nonetheless greeted company hoped for and more. Based on the Lordstown plant’s history, he said,
with thunderous applause from plant workers, business and political leaders “This is exactly the right place to build it.”

Greg Greenwood, left, welcomes Dave Green, president of Local 1714 of the United Auto Workers, Diana Tremblay, GM’s vice president of manufacturing and labor, speaks with Gov. Ted Strickland
Reuss, and Jim Graham, president of UAW Local 1112, during a tour of Greenwood Chevrolet in and Reuss. “We think the market is going to love this vehicle,” she says. “It’s got the features of
Austintown. The dealership was the GM executive’s first stop before heading to Lordstown. a mid-size, the amenities of a mid-size, but it’s got the efficiencies of a small car.”

“The Cruze will become synonymous with Ohio. And that’s fitting Vows Ben Strickland, UAW 1112 shop chairman, during his “It’s only fitting that this community is ground zero for the
because it reflects the innovation and resilience of the people remarks, “This is the cornerstone of General Motors, and we greatest economic comeback in the history of the United
of Ohio,” Gov. Strickland tells the crowd. are going to continue to drive it that way.” States of America,” proclaims U.S. Rep. Tim Ryan, D-17 Ohio.
44 MARCH 2010 The Business Journal

Marcellus Shale: Manufacturers Strike Gold

From Page 1 time,” he says. “The biggest problem facing these City Council. Councilwoman Carol Rimedio-Righet-
this country for decades to come. energy companies now is to get rid of the water.” ti has said she is concerned about the environmental
“This could have a tremendous impact on our Companies have perfected the technique of hori- ramifications because of how close the proposed
area and our economy,” says Becky Wall, executive zontal drilling, which uses a large amount of pressur- location is to neighborhoods in the 4th Ward.
vice president of Dearing Compressor & Pump Co., ized water to blast open the highly compressed shale Drilling in the Marcellus shale is nothing new.
Boardman. The company assembles large, heavy- – in some areas 9,000 feet below the Appalachian Prospecting companies began exploring the region
duty compressors energy companies use to explore surface. Because the shale is relatively thin – on in the 1830s and areas such as Oil City and Titusville,
for natural gas. average between 100 and 300 feet thick – the drill- Pa., became the epicenter of the world’s oil industry
Business for the company, which has undergone ing then turns horizontally and punches through during the late 19th century.
steady growth since 2006, has skyrocketed since fractures within the rock, unleashing pockets of However, reaching and extracting natural gas
energy companies started drilling in earnest at the natural gas encased tens of millions of years. from the Marcellus has always proved tricky and
shale about a year and a half ago, Wall says. The The excess water, now contaminated, needs to costly. First, it’s deep – the layer forms what amounts
natural-gas rush in the region convinced Dearing to be cleansed and properly disposed of. to a large pocket beneath the Appalachian Mountains
pump about $1 million into a major expansion of its That’s why D&L and another partner, Hart Re- that ranges in depth from 4,000 feet to 9,000 in shal-
operations just to keep up with orders originating source Technologies of Creekside, Pa., plan to con- low areas such as eastern Ohio. And, the Marcellus
from Marcellus drilling. struct a $1.7 million retainer well and wastewater layer is relatively thin, measuring on average about
“We’ve had an advantage because we’ve been treatment system at the Ohio Works Business Park 300 feet thick.
growing at a rapid pace,” Wall relates. “It prepared in Youngstown to cleanse and dispose of the con- The key to tapping into the Marcellus reserve
us for the opportunities for drilling in the shale.” taminated water produced from drilling the Marcel- is technology that has enabled horizontal drilling
The company is building a 50,000-square-foot lus shale. In total, the project would create 24 jobs techniques to become more cost-effective, says
manufacturing and assembly area in addition to immediately and pave the way for D&L’s exploration Terry Engleder, professor of geosciences at Penn
the 30,000-square-foot plant it occupies on Simon activities this summer. State University.
Road. As a result of Marcellus projects, the company “This could blossom big time,” Lupo says of the These advances, which energy companies started
expects to hire another 20 to 30 workers once the project, noting the area could be home to a half- to employ in earnest just two years ago, has the po-
expansion is finished in June. dozen wells. “He who can get rid of the water and tential to open an energy field so vast that, by itself,
Dearing Compressor, which employs 93, should get rid of it legally is king in this business. If we’re could supply the natural gas needs of the country
hit the 100 mark by March 31, Wall reports. able to get rid of it first, we could hit big time.” at least 20 years.
The machines Dearing designs and builds are The project is awaiting approval from the Ohio “It’s mind-boggling how large this is,” Engleder
huge – engines that range between 1,500 to 5,000 Environmental Protection Agency and Youngstown CONTINUES NEXT PAGE
horsepower, vary in price from $50,000 to $3 million
and that can drive drilling operations for major en-
ergy companies, reports Rick Dearing, president.
“The equipment we’re selling has a 30-year
lifespan to them,” Dearing says. “That means these
companies are in it for the long haul.”
Development officials in Pennsylvania project
that the commonwealth could realize $14.7 bil-
lion in economic development and the creation of
100,000 jobs by Dec. 31 as a result of Marcellus
drilling, Wall relates. “We want Ohio to latch onto
this,” he says.
Some Valley companies have already heard the
call loud and clear.
“We’ve been in Pennsylvania for five years and
got in before Marcellus broke loose,” says Ben Lupo,
president of D&L Energy, Youngstown. The com-
pany partners with large drilling companies, such
as Atlas Energy in Pittsburgh, to extract the gas.
D&L then hauls byproducts – especially resultant
contaminated water – for safe disposal.
The company also owns acreage in the shale and
expects to begin drilling operations there this sum-
mer, Lupo says. Just how much natural gas could be
extracted and the money that could be made in the
Marcellus is anyone’s guess, he says. “A $5 million
well could generate $50 million” over its lifetime,
he speculates.
And, landowners along the shale stand to profit
greatly as drilling along the most productive areas
– mostly in central to central-western Pennsylvania –
steps up, Lupo notes. “There are landowners getting
$1,500 to $5,000 an acre,” he reports. “If you have a
200-acre farm, you could make $1 million.”
Or, as landowners in the Marcellus Shale have
discovered, it’s more lucrative to lease their land,
Lupo relates. Standard leasing agreements call for
the landowner to reap a 20% royalty on the natural
gas produced from the well.
“We were lucky, we got the acreage ahead of Youngstown Mayor Jay Williams holds a rendering of V&M Star’s $650 million mill, a project fueled by demand for tubular pipe.
The Business Journal MARCH 2010 45

says. “Many believe that this area could yield 489 and oil. Demand is on the increase for the company’s threading and coupling processing. The pipe is then
trillion cubic feet of gas supplies.” products, largely because of Marcellus drilling. The sent to drill rigs in the Marcellus shale.
Engleder, who has studied the Marcellus Shale project is expected to create 350 full-time jobs and The Brookfield plant “eliminates any logistical
25 years, says those numbers are based on just 10% another 400 to 500 temporary construction jobs. problems” that could arise as a result of its Marcellus
of the natural gas that is packed within – an area And, another tube maker, Russian-based TMK customers, Galitzine says.
that conservatively covers 15 million acres. Others Ipsco, announced Feb. 23 that its subsidiary, Ultra He says the Marcellus will quickly be inundated
have pegged the area of useable gas at close to 35 Premium Connections, has leased the former Sharon with business interests across the country – Pitts-
million acres. Tube operation in Brookfield to start a threading mill burgh is already attracting its share of cars bearing
“Something of this magnitude hasn’t happened there that could eventually employ up to 120. Texas and Oklahoma license plates – and also a
in America for a long time,” Engleder notes. The “These shales are a game-changing phenomenon” strong international presence.
reserve is so significant that he compares it to the for natural gas exploration worldwide, says Pitor “In the last three months, you’ve seen about $50
oil rush that kicked off in 1859 with the Drake Well Galitzine, TMK Ipsco’s chairman. The company billion in takeover and investment deals related to
near Titusville, Pa., in Venango County. That single manufacturers seamless pipe in Ambridge, Pa., north shale exploration [around the world],” Galitzine
moment, also made possible by the perfection of new of Pittsburgh, and will then send it to Brookfield for says. “This is the energy of the future.”
drilling techniques, is largely considered the birth of
the world’s modern petroleum industry.
The Marcellus play could have the same effect on
the world’s natural gas industry, providing an alter-
native source to oil and thereby eliminating global
dependence on energy sources in the Middle East.
“Our dependence on foreign oil also jeopardizes our
security,” he says.
The first gas wells in the Marcellus were drilled
as early as the 1880s, Engleder notes. In 1940,
explorers trying to drill vertically below the shale
in Allegany County, N.Y., fractured the rock and
unleashed a torrent of natural gas with no means to
control the geyser. “We now have the technology to
control and transport the gas,” he relates.
The Marcellus shale was formed 400 million years
ago, when Ohio and Pennsylvania were covered with
heavy organic sediment that decayed over millions of
years. As the sediment degraded, methane and other
gases compressed and forced fractures in the rock.
As the sediment hardened and became packed under
layers and layers of other formations in the earth’s
crust, the gas became trapped in the fissures.
Horizontal drilling through the use of hydraulic
fracturing has proved revolutionary for exploration
because it unlocks these unconventional reservoirs,
Engleder says. Through this method, operators drill
vertically until they hit the shale. Then, the drill path
turns horizontally and bores 5,000 feet through the
fractures, creating a path for the released gas.
Strict vertical drilling is useless in the shale be-
cause the formation is so thin, Engleder says.
The best drilling sites are those where the shale is
thickest and deepest, which is generally in the center
to western portion of Pennsylvania, Engleder says.
He said it’s not likely that there would be any sub-
stantive drilling in the Mahoning Valley or nearby
Pennsylvania counties such as Lawrence and Mercer
any time soon.
“Mercer and Lawrence don’t have good shale for
drilling,” Engleder says. “It’s too shallow and thin.”
In Centre County, Pa., for example, the shale could
be buried 7,800 feet compared to just 4,000 to 3,500
in eastern Ohio and far western Pennsylvania.
As drilling technology improves, though, extract-
ing gas from this portion of the shale is very possible,
Engleder says. “In my opinion, it will happen, and
that includes areas around Youngstown. It’s just a
matter of when.”
But it’s clear the Mahoning Valley is already reap-
ing major rewards for the drilling activity because
of its proximity to the sites.
On Feb. 15, V&M Star announced it would
spend $650 million on its tube-making operations
in Youngstown and construct a new rolling mill. The
company melts scrap steel to produce oil-country
tubular pipe used for the exploration of natural gas
46 MARCH 2010 The Business Journal

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nline banking has made it easier and more • Update virus protection and security software. immediately.
convenient to manage business finances, but Ensure that all anti-spyware, anti-malware, and Data Security Made Simpler was created by The
it also provides an opportunity for hackers security software and mechanisms are robust and BBB in collaboration with two nationally recognized
to gain access to business accounts with the goal of up-to-date for all computer workstations and lap- data security experts, Dana Rosenfeld and David
making unauthorized money transfers. tops used for online banking and payments. Imple- Zetoony.
According to Visa Inc., 85% of data breaches oc- ment a process to periodically confirm they remain Small-business owners can get additional advice
cur at the small-business level. Many business own- up-to-date. Security patches are often available via and tips on improving data security at
ers are ill-prepared to defend customer or employee automatic updates. security.
information in the face of an attack; 33% of small
businesses lack even simple anti-virus protection,
reports Symantec Corp.
Small-business owners might feel that they are
flying under the radar of data thieves and hackers,
Lots of Scams, Rarely Arrests
but they are actually in the crosshairs.
That’s why the Better Business Bureau partnered
with security experts to show small-business owners
that implementing a strong data security strategy
rab your wallet!
Here are just a
few of the scams
we hear about all the
Encourage your employees to visit to
check out EVERY offer EVERY time. We can’t warn
people enough. Every week we hear from people
who appear to be fairly intelligent but tried to
outsmart the scammer or just couldn’t understand
doesn’t have to take a lot of time or resources.”
The BBB and Symantec, Visa, Kroll’s Fraud So- • Free grants avail- how the latest pitch couldn’t be legitimate. The best
lutions and the Electronic Payments Association able from the federal advice is to throw that junk mail away or delete that
created “Data Security Made Simpler,” an online stimulus. new fabulous offer in your inbox.
resource to help small businesses implement key • Debt relief? Just These kinds of thieves are becoming more clever
data security policies and practices. circle here. every day. They have underground networks to trade
Data Security Made Simpler tackles the key topics • Let us settle your ideas and sell “sucker” lists to each other.
of small-business data security including the follow- debts to the IRS or com- Originally, scam letters came from Nigeria but
ing advice for small-business owners to make secure panies for 50% of what now they come with postmarks all over the world.
online banking transactions: you owe. They are better written and more believable. These
By Pat Rose • Suspicious activity crooks even have business plans.
BBB President on your credit card? They know how much they can average by steal-
Small-business owners might feel that they Click here to authorize/ ing an individual’s credit card numbers. They also
are flying under the radar of data thieves verify your account. know how much more valuable a company’s ID
and hackers, but they are actually in the • You have won $100,000. Here is a check (coun- numbers and account information can be. With
terfeit of course). Send $4,987 to cover all costs. the new generation of smart phones now used
crosshairs. • Deposit it in your account and send us a to transfer financial information, new schemes
check for $1,999 so we can direct deposit the are being developed to hack into your phone
• Initiate a dual-control payment process with balance of your winnings. information.
your bank and employees. Ensure that all payments • Guaranteed 12% return on your invest- Here is a final tip to lessen the harm an ID
are initiated from your bank accounts only after the ment available only to members of our group thief can cause you and your company. Enter
authorization of two employees. (church, school, factory, etc.). So keep it the phone number and credit card number of
One employee will authorize the creation of among ourselves and send your $300 to each of your credit cards into your contact
the payment file and a second employee will be the name on the top. lists on your mobile phone.
responsible for authorizing the release of the file. • Verified funds available, guaranteed As soon as you discover an ID theft
This process should be in place regardless of the financing. or stolen purse or wallet, you can imme-
type of payment being initiated – checks, wire • My name is …. And my deceased hus- diately contact every credit card you own
transfers, fund transfers, payroll files, ACH pay- band was the oil minister in (Nigeria, Iraq, Sierra and alert the fraud department. It can immediately
ments, etc. Leone). stop any further activity on that card. This is also
• Have dedicated workstations. Restrict the use These and other wonderful opportunities are extremely beneficial if you are traveling abroad or
of certain workstations and laptops solely to online available to a select few billion people seeking money for an extended time with no immediate access to
banking and payments, if possible. For example, in tough times. those numbers.
a workstation or laptop used for online banking There are rarely arrests; if you give out money Remember to “Grab your wallet and/or check-
should not be also used for Web browsing or social or personal information, you will lose big. Unfortu- book” if you see or hear any of the above phrases
networking. nately, no one will get caught, no one will go to jail and when in doubt check it out EVERY TIME with
• Use robust authentication methods and ven- and your money, ID and credibility are gone. the BBB.
48 MARCH 2010 The Business Journal

Law Governs How

����������� Employers Conduct
������������ Background Checks
lmost everyone can relate to the cannot be disclosed in a background
experience – when filling out a check, such as school records, which
job application, you are asked cannot be released without the con-
to sign a consent form, authorizing sent of the student.
a prospective employer to conduct a Although you cannot be discrimi-
background check on you. nated against because you filed for
Your life, including credit history, bankruptcy, keep in mind that bank-

������������������� credit scores, driving record and a

myriad of other
information that
ruptcies are a matter of public record
and will show up
on background
you once deemed Prospective employer must gain checks.
�������������������������� private becomes your written permission to con- The laws vary
accessible to many. duct a background check. by state. Some
������������������������������������������������ Any inaccuracies states don’t allow
– of which you questions pertain-
��������� may not even be aware – could un- ing to arrests or convictions beyond
�������������������������� dermine your efforts to land new a certain point in the past while oth-
employment. ers allow consideration of criminal
������������������������������������������ What do you need to know to en- history only for certain employment
sure your background check is an em- positions. This information typically
ployment tool and not a hindrance? appears in a complete background
������������� First, be aware that a prospective check.
����������������������������� employer must obtain your written Also, employers cannot request
������������������������������������ permission to conduct a background medical records and are not allowed
check. If he wants to communicate to make hiring decisions based on an
with your associates, neighbors or applicant’s disability. They may in-
�������������������������������������� friends, they will need you to sign off quire only about the applicant’s ability
on an investigative consumer report. to perform a certain job.
What’s included in an employee The best way to prepare for a back-
������������������ background check? ground check is to be actively aware of
The Fair Credit Reporting Act sets any potentially damaging information
the standards for screening for em- that an employer might find. Consider
ployment. At minimum, a background using a reputable third party to obtain
check will verify your Social Security a background check on yourself.
������������������������������� number. If you find inaccurate data in your
��������������������������������������� However, employers generally seek background check, there is a written
additional information about things process for having such data removed.
such as employment history, educa- Contact the nearest Consumer Report-
��������������� tional credentials, credit history and ing Agency for details.
��������� possible criminal background. Equally important, ensure that
��������������������������� While there are obvious privacy your resume and job applications are
concerns related to such requests, truthful and accurate. Even if you
employers have some justification in land the job with a falsified resume, it
������������������������ their need-to-know efforts. According
to the Privacy Rights Clearinghouse, a
could be uncovered later, putting your
employment history at risk.
�������������������������������������������������� consumer rights organization, areas of If you are not hired as the result
������������������������������������������ inquiry and concern might include: of information contained in a back-
• False or misleading data offered ground check, the employer must
������������� ����������������������� by applicants, such as fictitious em- offer you a disclosure that includes a
���������������� ployment or educational credentials. copy of your report and your rights.
• Negligent hiring lawsuits brought He must also serve notice that he has
against an employer as the result of an decided not to hire you and inform
employee causing harm to others. you of the name and location of the
����������������������������������������� • Federal and state legal require- nearest Consumer Reporting Agency,
������������������������ ments for certain positions, such as as well as information on how to pro-
���������������������������������������������������� those related to contact with children ceed in disputing the report.
or the elderly.
There is some information that SOURCE:
The Business Journal MARCH 2010 49


Getting Ahead
Why Your Job Hunt Fails
Common mistakes yourself” – select your top five sell-
ing points based on your analysis of
can be avoided. the job duties and link them together
in a few sentences to create a “verbal

mployers are extraordinarily business card.”
picky about the people they • Flustered or stumped by tough
hire, says Robin Ryan, career interview questions. Too many can-
counselor and author of several books didates don’t think through answers
including 60 Seconds & You’re Hired! to tough but typical questions such
Many common mistakes can be as, “Why should we hire you?” Or,
avoided, he maintains. To help job- “Tell us about the worst boss you
seekers be successful, he offers the ever had.” This style of interviewing
following reasons for failure: is common; the interviewer probes to
• Failure to quickly sell your ac- determine how you have performed
complishments. Resumes get glanced in the past. Specific examples of past
at and rejected in 15 seconds or less. performance are required. Plan your
Generic job descriptions and unfo- answers to these kinds of questions
cused resumes simply don’t work. The before the interview, trying to put a
Internet’s ease of use has added to this positive spin on the experience. Never
problem, increasing by thousands the say anything degrading or negative
number of resumes received and mak- about your former boss or company.
ing it very hard to get noticed. Making good eye contact more effec-
• Your resume needs to scream tively displays your confidence during
that actions = results. Be specific. the interview.
Show where you saved money, made • Not asking intelligent questions.
money, saved time or increased pro- Hiring managers complain that all the
ductivity. Use action verbs such as candidates care about is how much
streamlined, created and implemented they’ll get paid, what the medical ben-
to show you’re a take-charge, get-the- efits are and how many vacation days
job-done kind of person. Limit your they’ll get. Instead, stay away from
resume to no more than two pages. these topics and impress the employer
If you apply online, also mail a hard- with good questions about job duties
copy resume. and management styles. Good ques-
• Not writing a cover letter. Hu- tions to ask might include, “Could
man resources managers say today’s you describe to me your management
job hunters think they can skip this style?” “What major concerns need
step, especially when they apply elec- to be immediately addressed by the
tronically. A well-written cover letter person who has this job?”
has great power with employers and
always should precede any resume More Workers Calling Off
you send. Open your letter with a Nearly one-third of employees
powerful first paragraph that sums up played hookey from work last year,
your related experience, key strengths, finds CareerBuilder’s survey on absen-
skills and accomplishments. teeism. Most employers don’t question
• Not knowing how to control absences, but 29% say they’ve checked
the interview. Dressing inappropri- up on an employee’s excuse and 15%
ately, discussing your life story, not have fired someone for missing work
appearing confident, not being well- without a legitimate reason.
informed about the company and As for workers, 12% called in sick
nervousness get you off to a bad start. because of something work-related,
Employers often make snap decisions; such as not wanting to attend a meet-
many admit they mentally dismiss a ing, needing more time to work on a
candidate during the first five minutes project or to avoid the wrath of a boss,
after the initial greeting. colleague or client. Still others missed
• Immediately address the top work simply because they didn’t feel
strengths you have to offer. Display like going that day (32%), had a doc-
enthusiasm for the job, show you have tor’s appointment (31%), needed to
the potential to learn, grow and pro- relax (28%), catch up on sleep (16%),
duce on the job. When the interviewer run personal errands (13%) or catch
asks the inevitable – “Tell me about up on housework (10%).
50 MARCH 2010 The Business Journal

YSU President-Elect
Meets the Press
By Dennis LaRue
Of where she finds YSU today,

he president-elect of Youngstown “I believe we’re poised, positioned,
State University, Cynthia to prevail,” she said. With Gov. Ted
E. Anderson, apologized to Strickland and education Chancellor
reporters that she “missed the big Eric Fingerhut’s role for YSU as an
party” when trustees chose her as the urban research institution, Anderson
seventh president of the institution. said, “I believe in the charge of the
She was in Nevada delivering two governor and the chancellor. I believe
academic papers and unable to attend we can catapult YSU into national
the trustees’ special meeting Feb. 17. prominence. …
To reintroduce herself and signal “YSU students are why we are
her accessibility to reporters, Ander- here,” she iterated. Her focus will
son held a press conference Feb. 24 continue on attracting students,
where she reiterated her optimism seeing that they stay the course and
about the future of YSU and the Ma- graduate. Cynthia Anderson, YSU’s vice president of student affairs, will become its seventh president.
honing Valley. “We have the best faculty, staff and nity college on enrollment at YSU. the Internet, and a reduction in the
Word of hiring 1,200 for a third students,” she declared and would put She expects the university will sign an number of remedial classes offered.
shift at the Lordstown plant of Gen- them up against those of any college articulation agreement so its graduates “A build-it-and-they-will-come
eral Motors Co., V&M Star Steel Co. or university in the country. That receive full credit for their coursework doesn’t cut it any more,” she said.
building a $650 million rolling mill said, Anderson realizes she will have if they enroll at YSU and work toward “Our university will be an incubator
expansion in the Brier Hill district to oversee change because of reduced a four-year degree. of new ideas.”
of Youngstown, Revere Data LLC funding from Columbus, advances in No longer can YSU be all things Anderson related that she has re-
opening in the downtown and other technology and the birth of Eastern to all people, she elaborated. It will ceived 832 e-mails of congratulations
welcome economic news show the Gateway Community College. have to establish new priorities that from alumni, many former students of
Mahoning Valley is well on its way to Anderson declined to venture an recognize a strapped state budget, hers. “I intend to answer all of them,”
recovery, she said. opinion on the effect of the commu- distance learning that incorporates she said.




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The Business Journal MARCH 2010 51


For the Record

F. N. B. Corp., Hermitage, Pa., parent Home Investment Services, a divi-
company of First National Bank of Pa., sion of Home Savings, Youngstown, has
is the winner of two excellence awards appointed Jane E. Skusa, UVEST finan-
from Greenwich Associates, a Con- cial consultant, community liaison.
necticut company that provides market
The ribbon was cut Feb. 24 at Fab
research to financial institutions.
Limousines, Austintown, by owners
Roger Lindgren, president of V&M Mark and Kim Bagnoli. The couple
Star, Youngstown, will deliver the key- bought the business from Bagnoli’s
note address during the American Metal family last June.
Market’s steel tube and pipe conference
Austinwoods Nursing Center, Aus-
in Houston March 22 and 23.
tintown, has received exemplary state
Valley Energy Solutions, Salem, will sur vey results with a deficiency-free
hold free informational seminars on score in the areas of quality of care and
green solutions for reducing heating/ nursing services under the Medicare/
cooling costs and the incentives avail- Medicaid-sponsored Quality Indicator
able for businesses and homeowners. Survey 2010.
Seminars will be March 4 at the Holiday
Karen Neopolitan has joined North-
Inn–Boardman. Call 330 702 0147.
wood Realty Services in the company’s
“Be Prepared: 100 Years of Boy Boardman/Canfield office.
Scouts in America” will be on exhibit at InfoCision, Akron, has named Steve
the Arms Family Museum, Youngstown, Brubaker chief of staff, Michael Van
through May 30. Scyoc chief strategy officer, and Michael
The Youngstown Area Jewish Fed- White chief technology officer.
eration will kick off its 75th anniversary Kutlick Realty, Boardman, reports
celebration at the opening reception of that First Choice Communications,
“Fabric of Survival: The Art of Esther an authorized AT&T dealer, has leased
Nisenthal Krinitz,” on March 7 at the retail space in Liber ty across from
Butler Institute of American Art. The Wal-Mart. John Gillespie’s
exhibition consists of needlework and
fabric collage pictures depicting the
artist’s personal stories of survival dur-
Sharon Regional Health System,
Sharon, Pa., has introduced a bariatric Professional A+ Rating

surgery program under the direction of
ing the Holocaust.
Ravi Alapati, M.D.
Dave and Jeff Mirkin, franchisees of Sharon Regional’s Breast Care
Comfort Keepers in Youngstown, have Center has earned the Breast Imaging 157 S. Four Mile Run Rd. Youngstown, OH 44515
been awarded the Quest for Excellence Center of Excellence Award from the
award from CK Franchising Inc. American College of Radiology. (330) 793-6411 Since 1974

Great Office Cleaning!

Complete janitorial services.
Expert floor finishing and carpet cleaning.

� � ������������������������������������������������
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Scott Schulick, president of Youngstown State University’s board of trustees, welcomes
Leonard D. Schiavone to the board. Schiavone is a partner and treasurer of the Friedman
& Rummell law firm and co–owner and president of Metro Land Title Agency Inc. He is
completing his third term on the board of directors for Humility of Mary Health Partners. ������������������������
52 MARCH 2010 The Business Journal

Legal Listings
Business Bankruptcies
� ������������������������������������� 10-40467 FDM Corp., 4 Washington St., 10-40143 M.E. Supply Co., 1340 state
�� ������������������������� Leetonia 44431. Involuntar y. Petitioning Route 14, Columbiana 44408. Total As-
Creditors: Staff Right Professional Services sets: $1,786,140.46. Total Liabilities:
�� ���������������� LLC, Boardman; Nook Industries, Cuyahoga $3,509,141.51. Date Filed: Jan. 14, 2009.
Heights; J&C Industries Inc., Cleveland. No
Summary Schedules filed.
�� �������������
New Ohio Incorporations
Brother’s Auto Group Inc., Youngstown. Youngstown 44513. Agent: Alvin A. Miller Jr.,
Incorporator: Michael W. Rosenberg. Filed 30 White Oak Court, Canfield 44406.

�������� by: Letson, Griffith, Woodall, Lavelle & Rosen-
�������� X-Press Underground Inc., Canfield. Incor-
berg Co. LPA, 155 S. Park Ave., Suite 250, porator: Daniel G. Perr y. Filed by: Bodine
Warren 44482. Agent: Adnan M. Ali, 4439 Perry LLC, 3711 Starr Centre Drive, Suite 2,
Wyndham Way, Copley 44321. Canfield 44406. Agent: Daniel G. Perry, 3711
Starr Centre Drive, Canfield 44406.
������������ Hyland Industrial Products Inc., Poland.
Incorporator: Larry D. Wilkes. Filed by: Davis Corner Stone Management Co. Inc., Aus-
����������� & Young, 972 Youngstown-Kingsville Road, tintown. Incorporator: James P. Manchi. Filed
Vienna 44473. Agent: Larry E. Wilkes, 648 by: Manchester, Bennett, Powers & Ullman,
������������������������ Cathyann Drive, Boardman 44512. 201 E. Commerce St., Atrium Level Two,
���������������������� Youngstown 44503. Agent: James P. Manchi,
Temperature Technologies Inc., Diamond.
������������������� Incorporator: Ronald D. Griswold. Filed by: 1050 Compass West, Youngstown 44515.
����������������� Lawrence H. Richards Co. LPA, 400 City Jay’s Hot Dog Franchising Co., Youngstown.
�� Centre One, Youngstown 44503. Agent: Incorporator: Frank Petrakos. Filed by: Law-
Ronald D. Griswold, 14401 N. Palmyra Road, rence H. Richards Co. LPA, 400 City Centre
����������� Diamond 44412. One, Youngstown 44503. Agent: Frank Petra-
��������� kos, 1515 Alissa Place, Boardman 44512.
R&R Security Services Inc., Youngstown.
Incorporator: Jesse Rutland. Filed by: Man- Advanced Electrical Service Inc.,
chester, Bennett, Powers & Ullman, 201 E. Youngstown. Incorporator: Michael Bolotenny.
Commerce St., Atrium Level Two, Youngstown Filed by: Michael Bolotenny, 635 N. Schenley
44503. Agent: Jesse Rutland, 437 Sherwood Ave., Youngstown 44509. Agent: Same.
Ave., Youngstown 44511.
Canfield Pools Inc., Canfield. Incorporator:
Hampton Woods Assisted Living Inc., Aus- Bradley Timko. Filed by: Lori L. Timko, 8217
tintown. Incorporator: 350 Corporate Circle Columbiana-Canfield Road, Canfield 44406.
Inc. Filed by: Rolf & Goffman Co. LPA, 30100 Agent: Bradley Timko, 8217 Columbiana-
Chagrin Blvd., Suite 350, Pepper Pike 44124. Canfield Road, Canfield 44406.
Agent: 350 Corporate Circle Inc., 30100 Cha-
grin Blvd., Suite 350, Pepper Pike 44124. I.I.I. Claims Inc., Youngstown. Incorporator:
Carl Massullo. Filed by: Helbley, 725 Board-
Roxbury Realty Inc., Canfield. Incorporator: man-Canfield Road #K2, Youngstown 44512.
Alvin A. Miller Jr. Filed by: Michael P. Ma- Agent: Carl Massullo, 735 Boardman-Canfield
rando, Pfau, Pfau & Marando, P.O. Box 9070, Road, #K2, Youngstown 44512.

Pa. Fictitious Names

A fictitious business name is the name under which a Greenville 16125, apparel sales. Fictitious
company conducts business but which is not the legal Name Owner: Harbor Light Marketing LLC.
name of the owner or of the corporation as indicated
in its articles of incorporation. Young’s Vending, 200 Snyder Road, Her-
mitage 16148, vending service. Fictitious
Ageless Image, 647 N. Broad St. Ext., Grove Name Owners: Charles T. Cricks, MayField
City 16127, medical and cosmetic products. Ventures LLC.
Fictitious Name Owner: H. Martin Wrigley.
Christian Assistance Network, 823 Liberty
St., Grove City 16127, aid with living, hous-
Pa. Incorporations
ing and medical expenses. Fictitious Name JJSD Inc., 2708 Wilmington Road, New
Owner: Christians in Action in Crisis Inc. Castle 16105.
Eddie’s Garage, 115 W. Hunt Drive, Grove Kalsoom Dildar Inc., 104 Glen Ave., Ellwood
City 16127, general automotive service. Ficti- City 16117.
���������������������������� �������������������������� tious Name Owner: Joshua E. Sateia.
Pittsburgh Concessions Inc., 103 Worthing
��������������������������� �������������������������� D&D Cycle, 100 Pinchalong Road, Grove Ave., New Castle 16105.
������������������������������ City 16127, sell motorcycle parts and make
minor repairs. Fictitious Name Owner: Debo- Doctor’s Pharmacy Network Inc., 30 E.
����������������������������� State St., Sharon 16146.
rah E. Isenberg.
D’s Photographic Impressions, 103 Barr Nina Leigh Inc., 1390 Mercer-West Middle-
������ ���� Ave., Grove City 16127, photography studio.
Fictitious Name Owner: Darin Hazlett.
sex Road, Mercer 16137.
Stitch & Dazzle Ltd., 213 W. Main St.,
Hilltop Workwear LLC, 16 Hilltop Road, Sharpsville 16150.
The Business Journal MARCH 2010 53

Think globally.

Sales Savvy
The Best from the Best:
Listen locally.
WYSU 88.5 FM
Sales Tips from Readers
� ����������������������
What do salespeople your customers will be.
• SMILE and mean it.
� �����������������������
do that’s best? What
� �������������������������
• When you work hard consis-
do you do? tently, the numbers will take care of

B � �����������������������������
ack in October, I created a • Be prepared. Know your client
giveaway on my Facebook fan and their competition.
page. I offered a prize of several
autographed books for the person who
• Never get complacent. Challenge
yourself to be better. I asked my top
� �������������������
submitted the best sales tip. salesperson after a really successful
I received more than 260 responses. week if she was happy with the results.
Here are a few of the tips – I hope they She said “no.” That is why she is my
inspire you to think and take some top salesperson.
new (better) actions: • My best tip is to approach sales the
• If YOU don’t care, neither will way you desire to be approached. Radio you need to know.
your client. • Loose lips sink ships. I’ve seen
• I find that being curious and
genuinely interested in people has
more salespeople talk themselves
OUT of a sale than into one.
helped me grow my business and • I say to each client, “I am here
develop stronger relationships. It has to give you as much information as
also helped me to expand my profes- you need in order for you to make a
sional networks. completely informed decision.”
• Sales is not about selling. It is • Confidence speaks louder than
about relationships. words.
• Make the call! • Sales is a simple concept: help
• Always tell the TRUTH. people like you would want to be
• Alter the way you interact with helped.
each and every person, but never • Do your homework to earn the
change who you are! right to have a conversation.
• My second favorite four-letter • It’s difficult to take back a first
word is SOLD. My first is PAID. impression.
• Make doing business with you • Create a following by never fol-
easy. No nonsense. No rules. lowing.
• Just do what you say you are • Print out your client list/call list,
going to do. then turn your computer off and pick
• Don’t sell anything you wouldn’t up the phone. No e-mail you send is
buy yourself. going to be as good as the call I am
• Do it now, not tomorrow, not lat- going to make.
er, not after your coffee, not after you Pretty good? These are regular hit-
check e-mail. Do it now. Be known for the-phone-and-the-pavement sales-
your super-fast response. people who are out in their market or
• My best tip is “protect the base.” their community, making it happen. I
After I’ve met a prospective or current applaud them.
client, I’ve been writing a handwritten The winner? Bill Atkins. He owns
note expressing my gratitude indicat- Red Bank Limo in New Jersey. His
ing that I realize they have a choice in tip: Each day, pick two customers
buying supplies, but I thank them for at random. Tell them you just called
choosing my company. to see how they are doing. No sales
• My motto – NO PROBLEM! – no pitches allowed. Focus on the long-
matter what! People do not want term relationship you are building,
to know why something cannot be not the sale.
done, they just want it fixed, repaired,
made like new without any excuses Jeffrey Gitomer, author of The Sales Bible,
– period. The better, faster, and with conducts seminars, sales meetings and
understanding of their point of view, training programs. Reach him at 704 333
the stronger your relationships with 1112 or at
54 MARCH 2010 The Business Journal

February 26,
2010 Auto Loan Rates

Up to 60 Mos. 5.75 - 16.50 Up to 60 Mos. 8.00
10% Down
Rate varies based on applicant’s credit rating


Up to 60 Mos. 7.74
Up to 60 Mos. 6.75
Up to 66 Mos. 8.24
Up to 72 Mos. 6.75 10% Down

� �� ����� ��� �������� ��� ������ ��� ���

E.S.B. BANK – Ellwood City
Up to 60 Mos.
Up to 72 Mos.
Up to 60 Mos. 5.99


��������������������������������� Up to 60 Mos. 5.40
KEYBANK – Youngstown
Up to 66 Mos. 6.69
Up to 72 Mos. 5.94 Down: Varies
Rate varies based on applicant’s credit rating
��������� PNC BANK – Sharon
� �� ����������������������������� Up to 48 Mos. 5.50-12.50
Up to 66 Mos. 7.24
� �� ������������������������� 10% Down
PNC BANK – Youngstown
� � ������������ FIRST NATIONAL BANK OF PA. – Hermitage Up to 66 Mos. 7.00 - 13.00
� �� ��������������������������� Up to 60 Mos. 7.85 Rate varies based on applicant’s credit rating
Up to 66 Mos. 7.85
� �� �������������������������������
US BANK (formerly Firstar Bank) – Boardman
��������������������������������������� Up to 48 Mos. 4.00
Up to 60 Mos. 6.00 - 11.75

Every effort is made to ensure the accuracy of The Business Journal compilations. The rates are subject to change without notice. All rate
����� information should be confirmed with the individual financial institution before entering into transactions. © 2010 Youngstown Publishing Co.

� �� �����������

�� �����������������������������
�� ������������������� Valley Vehicle Sales Sag in January
� �� �������������������������
� � �������������������� Dealers sold 3,776 new and the Chevrolet Malibu with 125 sold. Second was the
Chevrolet Impala with 49, followed by the Chevy
���������������������������������������� used vehicles, down 16.2%. Equinox with 43. Rounding out the five top sell-
ers among Mahoning Valley dealers were the Ford
Auto dealers in Mahoning, Trumbull and Colum- Focus with 40 sold and the Ford F-150 truck, with
biana counties report sales of new vehicles fell by 37 units sold.
12% in January compared to the previous year.
The Automobile Dealers Association of Eastern January Home Sales Flat
� �� ������������������������ Ohio’s monthly sales report shows dealers in the YOUNGSTOWN, Feb. 23 – Sales of single-family homes
� �� ��������������������������������������� Mahoning Valley sold a total of 1,281 new cars and and condominiums in January were flat in Mahoning
trucks during the month, compared to 1,458 in County compared to the month before, and were down
� �� ������������������������� January 2009. in both Trumbull and Columbiana counties compared
� � ������������������������ Sweeney Chevrolet and The Honda Store of to December.
Boardman both recorded top sales for new ve- Sales of single-family homes and condos in January
� �� ��������������������������� hicles with 68 units sold. Greenwood Chevrolet, totaled 121 units, matching the 121 sold in December,
��������������������������������������� Austintown, reported 67 new vehicles were sold; according to the Youngstown-Columbiana Association
Stadium GM Superstore, Salem, sold 62 new ve- of Realtors. In Trumbull County, 93 single-family homes
hicles; and Bob & Chuck Eddy Chrysler Dodge Jeep, and condos were sold, compared with 139 in Decem-
Austintown, sold 55. ber. In Columbiana County, 31 single-family homes and
Total sales of new and used vehicles were also condos were sold, down from 50 in December.
down, the trade group reported. Dealers said they Total sales for January were nearly $8.9 million in
sold a combined 3,776 units of new and used cars Mahoning County, just short of $6 million in Trumbull
and trucks, compared to 4,511 during January 2009, County and close to $2.7 million in Columbiana County.
a drop of 16.2%. That compares to nearly $10.1 million in Trumbull in
Greenwood Chevrolet turned in the most new December, close to $9.8 million in Mahoning, and short
and used sales with 150. Stadium GM Superstore of $4.3 million in Columbiana.
in Salem was second-highest with 129 units. Fair- During the fourth quarter of 2009, 402 homes were
way Ford in Canfield was third with 118. Sweeney sold in Mahoning County, down from 450 the preced-
������������������������������������� Chevrolet turned in the fourth-highest sales with ing quarter. In Trumbull County, sales rose from 305
113 units. And Preston Toyota, Boardman, recorded in the third quarter to 322 in the fourth quarter. In
��������������������������� 97 new and used sales. Columbiana County, sales declined from 168 in the
The top-selling new model for the month was third quarter to 134 in the fourth quarter.
The Business Journal MARCH 2010 55

February 26,
2010 Mortgage Rates �������������


AMERISTATE BANCORP INC. FHA/VA 3.5% Down 30 Yr. 4.75  0+costs ��������������
Boardman Fixed 3% Down 30 Yr. 4.875  0+costs ���������
CHARTER ONE BANK Fixed 5% Down 15 Yr. 4.375  0+costs ��������������
Boardman Fixed 5% Down 30 Yr. 5.125 — 0+costs ���������
CONSUMERS NATIONAL BANK Fixed 5% Down 15 Yr. 4.50  0+costs ���������������������������������������
Salem Fixed 5% Down 30 Yr. 5.125 — 0+costs �������������������������

CORTLAND BANKS Fixed 5% Down 15 Yr. 4.375 — 0+costs ������������ �����������������������

Cortland Fixed 5% Down 30 Yr. 4.875  0+costs

DOLLAR BANK MORTGAGE CENTER ARM 5% Down 5 Yr. 3.875 — 0+costs ������������
Cleveland Fixed 5% Down 30 Yr. 4.94 — 0+costs

E.S.B. BANK Fixed 5% Down 15 Yr. 4.50 — 0+costs

Ellwood City, Pa. Fixed 5% Down 30 Yr. 5.25 — 0+costs
FARMERS NATIONAL BANK Fixed 20% Down 15 Yr. 4.75 — 0+costs
Canfield Fixed 20% Down 20 Yr. 5.125 — 0+costs �������������������
FIRST MERIT BANK Fixed 5% Down 15 Yr. 4.375 — 0+costs
New Castle/Boardman Fixed 5% Down 30 Yr. 5.125 — 0+costs �����������������������������
FIRST NATIONAL BANK OF PA Fixed 5% Down 15 Yr. 4.375  0+costs ��������������������������������������
Youngstown, Ohio Fixed 5% Down 30 Yr. 5.00  0+costs ���������������������������������������������
Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.” �����������������������������������




����������������� ����������������
56 MARCH 2010 The Business Journal

���� Mortgage Rates

February 26,


1ST NATIONAL COMMUNITY FHA 5% Down 30 Yr. 5.00 — 0+costs
East Liverpool Fixed 5% Down 30 Yr. 5.25 — 0+costs
FIRST PLACE BANK Fixed 5% Down 15 Yr. 4.375  0+costs
Boardman Fixed 5% Down 30 Yr. 5.125  0+costs
FLAGSTAR BANK Fixed 0% Down 15 Yr. 4.50 — 0+costs
Beechwood Fixed 0% Down 30 Yr. 5.125  0+costs

HOME FEDERAL Fixed 20% Down 15 Yr. 5.75  0+costs
4.50 
�42� � �������� HOME SAVINGS
5% Down
5% Down
15 Yr.
30 Yr. 4.99 
�77� � ������� HOWARD HANNA FINANCIAL Fixed 5% Down 15 Yr. 4.375 — 0+costs
Pittsburgh Fixed 5% Down 30 Yr. 5.25  0+costs
�96� � ������� HUNTINGTON BANK Fixed 3% Down 15 Yr. 4.50  0+costs
Youngstown Fixed 5% Down 30 Yr. 5.125  0+costs

KEYBANK Fixed 20% Down 15 Yr. 4.50  0+costs

Youngstown Fixed 20% Down 30 Yr. 5.125  .125+costs

PNC BANK FHA 3% Down 30 Yr. 5.25 — 0+costs

Youngstown Fixed 5% Down 30 Yr. 5.25  0+costs
WELLS FARGO HOME MORTGAGE FHA 3% Down 30 Yr. 5.00  0+costs
Boardman (Formerly Norwest Mortgage) Fixed 5% Down 30 Yr. 5.00 — 0+costs
US BANK Fixed 5% Down 15 Yr. 4.75  0+costs
������������������������������������� Boardman (Formerly Firstar Bank) Fixed 5% Down 30 Yr. 5.10  1+costs
������������������������������� © 2010 Youngstown Publishing Co. All rights reserved. *Private Mortgage Insurance because less than 20% down.




Time For Three
Brubeck Travels in Time For Three
Tchaikovsky Symphony No. 4, F minor

March 20, 2010 • 8 PM

CALL FOR TICKETS:330-744-0264
Online at

Concert underwritten in part by PNC Foundation
The Business Journal MARCH 2010 57

Local business news. Every business day. First on the Web.

Assisted Living Center

Opens in Poland
K athy Prasad, the owner and CEO of Woodlands
LLC, celebrated the grand opening of her
company’s new Assisted Living Center at
Hampton Woods on East Western Road in Poland
with a ribbon cutting Feb. 18. The new assisted-
living center has 52 residential units that can house
as many as 84, she says. Her son, Frank Antalocy, is
chief financial officer of the company. Another son,
Jason Antalocy is purchasing agent.
Kathy Prasad, owner and CEO of Woodlands LLC, presided over
the ribbon cutting at the new assisted-living center Feb. 18,
helped by her sons, Jason and Frank Antalocy.

Revere Data Office

Opens in Youngstown
R evere Data LLC, based in San Francisco, has
renovated 1,800 square feet of space and has
an option on another 1,800 feet in the Semple
Building in downtown Youngstown. The company
provides research data on companies for clients
such as financial institutions, the U.S. government,
hedge funds and other customers, says CEO Kevin
O’Brien. Community leaders and the media toured
Revere Data’s offices Feb. 16.
CEO Kevin O’Brien says Revere Data LLC’s new office in
downtown Youngstown could have as many as 100 employees.
Ten new employees are already on the job.

Summer Garden Grows

Model for Innovation
O hio Secretary of State Jennifer Brunner
visited Summer Garden Food Manufacturing
Co. Feb. 18 as part of her campaign for the
Democratic Party’s nomination for the U.S. Senate.
Brunner’s visit, the ninth in her so-called “Innovation
Tour for Ohio Jobs,” highlighted the 50,000-square-
foot plant at 500 McClurg Road in Boardman. The
building opened two years ago and adheres to the
LEED “green building” rating system.
Chris Thomas, director of quality assurance at Summer Garden,
shows Jennifer Brunner a jar of pizza sauce produced at the
food-processing plant.
58 MARCH 2010 The Business Journal


3 Minutes...

Alex & Jorgine Shaffo, Owners

Monday-Friday 10:30 a.m.- 2:30 p.m. Jane Oates Charlie Wilson
U.S. Assistant Secretary of Labor for U.S. Representative, D-6th Ohio
Located in the YMCA Building Employment and Training

17 N. Champion St. • Downtown Youngstown he U.S. assistant secretar y of .S. Rep. Charlie Wilson, D-
labor for employment and training, 6th Ohio, hopes to introduce
NEW MENU EVERY DAY Jane Oates, says she is pleased
at how effectively stimulus funds have
legislation that would allow
banks to provide companies with
been spent to help the unemployed in the capital they need while satisfying
Trumbull, Mahoning and Columbiana regulators the banks will maintain
counties train for new jobs. Oates was their higher credit standards. He met
in the Warren office of U.S. Rep. Tim with bankers and small-business
Ryan, D-17th Ohio, Feb. 19. owners Feb. 16 to determine how
these competing goals might be met.
Role of Community College:

������ The community colleges have to be

working hand in hand with businesses.
… I was so encouraged today by hear-
Bankers are being told by regulators
that they need to not take on new loans

��������� ing the direct connection between local and that’s counterproductive to what
businesses and Eastern Gateway Com- we’re trying to do.
munity College – I think that’s the recipe
for success. And I think it’s going to mean Banks’ Safety?
���������������������������������������� that your folks here get back to work We’re concerned about the safety of
much faster than people in other parts of the banks but we’re also concerned that
the country who don’t have those active
������������ and real partnerships.
we’re able to get finances to the small
businesses. We think this is a very im-
��������������� ���������
��� Where Are the Jobs?
portant ingredient. And it’s a place where
the government may be able to step in
����������� ����������������� ����� ��������� On a national basis, the two growth and ensure the banks their safety and
sectors throughout the recession have also provide the lending we need to get
����������� ����������������� ����� been education – both K-12 education business going.
and higher education, they’re still hir-
���������� �������������������� ����� ing – and allied health. Everything from Money Will Come From?
������������������ RNs – the shortage that we hear so The money’s going to come from
������� ��������������������������� ����� much about – to all the technical work where it always has and that is the
��������������������������������� ����� that’s done in hospitals . … The most investments and savings in the banks.
important thing is to go to your local Right now we’re in a very down economy
OneStop and really look at the labor and we need to make some exceptions
market information for your local area. to make sure that the banks can be suc-
�������������� Here in northern Ohio you’re going to
see growth in wind turbine and solar-
cessful, but even more so that they spur
business to continue to grow. We need
������������ panel manufacturing that you won’t see to get jobs going and that’s going to be
����������������������� in the southern part of the state. our focus.
Visit to view insightful video interviews with the Valley’s most influ-
ential business and community leaders. Topics are always timely and pertinent.
The Business Journal MARCH 2010 59

��������� ���������� �������� ������� �������� ������������� ��������� ������������

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Eagle Mechanical Celebrating 20 years in the Mahoning Valley.

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“Thank you” Mahoning Valley from Eagle Mechanical LLC

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