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Hood expands Oneida plant; $36 million project adds 25 jobs
ONEIDA — HP Hood has completed a $36 million expansion of its Oneida facility, in Madison County. The expansion includes the addition of 25 new jobs at the plant. According to the New York Power Authority (NYPA), the expansion is the result of an allocation of low-cost power from the state’s ReCharge NY program. “The power […]
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ONEIDA — HP Hood has completed a $36 million expansion of its Oneida facility, in Madison County.
The expansion includes the addition of 25 new jobs at the plant.
According to the New York Power Authority (NYPA), the expansion is the result of an allocation of low-cost power from the state’s ReCharge NY program.
“The power allocation is directly tied to the firm’s completed expansion project and its commitment to retain approximately 200 existing jobs and hire more than 25 new employees,” according to a news release from NYPA. The Hood Oneida facility is receiving 280 kilowatts of expansion power from the ReCharge program.
Gil C. Quiniones, NYPA president and CEO, said, “ReCharge NY has been a great benefit to Central New York, creating nearly 1,200 jobs in the region since power was first provided under the governor’s program in 2012. This expansion project by HP Hood is great news for the local community as it signals the company’s strong commitment to the area.”
The expansion included the installation of an additional milk production line, cold storage, food security, and expanded capacity. The Oneida facility produces about 113 milk and fluid products, according to the release. It supplies major warehouse operations that provide foodservice, retail and wholesale firms with dairy products manufactured in Oneida and from other Hood facilities.
“We are pleased with the results of the program and would like to extend our gratitude to Governor Cuomo and the New York Power Authority for providing significant support to this expansion project. Having been customers of the governor’s ReCharge NY program for several years, we’re aware of how impactful the program’s lower cost power has been in sustaining our daily operations and providing us with the ability to reinvest in our facility,” said Lynne Bohan, spokesperson for Hood.
The company has been a NYPA ReCharge NY customer since 2012 when the Oneida location received 800 kilowatts of retention power under the program. In addition to serving Hood in Oneida, NYPA also provides ReCharge NY power to Hood locations in Arkport, LaFargeville, and Vernon. Hood is also building a plant in Batavia that will open next year with 230 employees, according to the release.
ReCharge NY offers up to seven-year power contracts. Half of the power is 455 megawatts from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants. The remaining 455 megawatts is purchased by NYPA on the wholesale market, the release stated. It added that the program includes nearly 100 businesses and not-for-profit organizations in Central New York, directly supporting the creation or retention of more than 20,000 jobs and nearly $1.2 billion in capital investments.
There remains more than 140 megawatts of low-cost power still available to be allocated to businesses and not-for-profit organizations throughout the state, according to the release.
Sen. Joe Griffo (R–Rome) said, “I congratulate HP Hood in Madison County for the successful completion of its facility expansion and for the creation of more than 25 new jobs. This is exactly the kind of project and subsequent job creation and retention that the ReCharge NY program, formerly the Power for Jobs program, was established to effectuate. I would also add that the Hood line of products, which incorporate healthy and abundant New York milk supplies, are some of the most delicious milk and cheese products imaginable and I am very pleased to see this company doing so well.”
“The addition of more than 25 jobs at HP Hood, its economic investment in its facility, and its commitment to remaining in Madison County is welcome news. Programs such as ReCharge NY that help HP Hood and other major employers retain and increase their workforce are directly benefitting our local communities all over Central New York,” Sen. David J. Valesky (D–Oneida) said.
Four Employee-Benefits Trends to Help Attract and Retain Talent
Attracting and retaining top Talent is more challenging than Ever. Employment is up, U.S. unemployment is at a 10-year low (falling to about 4 percent this year), and aging Baby Boomers are reaching retirement age and exiting the workforce. In fact, the percentage of working-age Americans in the labor force has dropped to about 63 percent,
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Attracting and retaining top Talent is more challenging than Ever. Employment is up, U.S. unemployment is at a 10-year low (falling to about 4 percent this year), and aging Baby Boomers are reaching retirement age and exiting the workforce. In fact, the percentage of working-age Americans in the labor force has dropped to about 63 percent, near a 40-year low. One way that businesses can attract employees is to understand their needs and provide a portfolio of benefits that are customized to the employee’s stage of life. Additionally, businesses that empower employees to understand and effectively use their health-care and retirement benefits can create a competitive advantage. Here are four tips for using employee benefits to help build and sustain a strong workforce.
1. Appeal to millennials
First review your strategies for targeting different age groups. According to a recent survey by Glassdoor, employees aged 18 to 44 prefer benefits or perks to pay raises, compared to those aged 45 to 64. Employers want to hire millennials, who are poised to climb the career ladder and fill the ranks of exiting baby boomers. Contrary to popular myth, millennials crave job security as much as any generation prior to them. Qualtrics’ Millennial Study reported that 77 percent would be willing to take a salary cut in exchange for long-term job security. In addition, 64 percent of millennials say benefits are extremely or very important to employer loyalty.
2. Help employees understand and adjust to new health-care options
Some companies are adopting consumer-driven or high-deductible health-care plans, with many pairing these with health savings accounts (HSAs) or health reimbursement arrangements (HRAs) to keep employee costs low. As employees adopt these solutions, they’ll need the right tools to understand and use their health plans. Interest in Health Savings Accounts has picked up among millennials, but only 50 percent are confident they have a strong understanding of their employee benefits. Consider new ways to increase their knowledge by offering education year-round, not only during the enrollment cycle.
3. Track changing legislation
In addition to updating internal benefit policies, it’s important to track changing health-care and retirement-plan legislation, as it may have far-reaching implications for how employee benefits are administered. The Kaiser Family Foundation reported that 96 percent of firms with 50 or more full-time employees offered at least one plan that would meet the Affordable Care Act’s minimum value and affordability requirements. This year, Congress passed a two-year delay of the 40 percent excise tax (or “Cadillac Tax”) imposed by the Affordable Care Act on high-cost employer-sponsored health plans. This change underscores the need to be aware of legislative activity.
4. Encourage informed decisions by promoting financial-wellness programs and tools
A strong financial-wellness program can empower employees and build loyalty to the firm. Take time to educate employees about the potential impact of major life events and how to prepare for and estimate the financial impact of future events to minimize the impact on other aspects of their lives.
The Bank of America Merrill Lynch 2017 Workplace Benefits Report found that the number one issue for employees is saving for retirement. Only one-third of employees are engaged with 401(k) plans — contributing 11 percent or more of their salary to their plan. To encourage better financial habits, 85 percent of employers plan to utilize a financial-wellness program. Companies are expanding their educational resources to help inform employee retirement and health-care decisions. These efforts include online financial/investment advice, group/classroom education and one-on-one support. Consider implementing additional support services and programs, or fully optimize your existing ones to engage employees and encourage positive actions.
Companies invest an enormous amount of resources in employee benefits, but without proper education and understanding may not receive the full value of these benefits. Offering robust plans and ensuring employees have the tools they need to make informed decisions can help you build a strong, sustainable workforce. Through education and financial-wellness programs, companies can not only help employees to fully utilize benefits, but also can build greater employee appreciation and loyalty as employees increasingly understand and exercise their benefits.
Michael W. Brunner is Central New York market president and senior relationship manager of global commercial banking at Bank of America.
The Legislative Session of Missed Opportunities
The 2018 legislative session has officially ended in Albany. Unfortunately, much of the dialogue in Albany was spent focused on President Trump instead of seizing the opportunities to improve New York state. Even before the session began, Gov. Andrew Cuomo claimed New York was under assault from the federal government. Due to anticipated cuts in health-care
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The 2018 legislative session has officially ended in Albany. Unfortunately, much of the dialogue in Albany was spent focused on President Trump instead of seizing the opportunities to improve New York state.
Even before the session began, Gov. Andrew Cuomo claimed New York was under assault from the federal government. Due to anticipated cuts in health-care funding, he said that New York would face a $4 billion deficit. Further, he claimed that the recent federal tax-reform law would only widen this gap and harm our state. Following this doom and gloom rhetoric, about $1 billion in taxes was proposed with this year’s budget rather than focusing on policies to boost the economy and make New York more competitive.
Thankfully, we were successful in pushing back on some of these taxes but still, a new optional payroll tax was created, taxes on drug manufacturers passed, and surcharges on taxis and ride-sharing services like Uber and Lyft were also signed into law. It is important to note that the purported cuts to health care never materialized and despite the rhetoric, the state is not bankrupt because of actions taken by the federal government. In fact, many signs show that because of the tax changes made at the federal level that more private businesses — small and large — are choosing to make investments, and in even some cases, provide their workers a raise.
After the budget was completed, it was a great opportunity to take up ethics reform. Even amid recent corruption cases involving Joe Percoco, a former trusted staff member of Gov. Cuomo, and Alain Kaloyeros, who was at the helm of many of the governor’s economic-development projects, including the failed CNY Film Hub, one would think reforming the state’s economic development programs and procurement procedures to prevent the pay-to-play politics would be a priority. Unfortunately, despite measures passing in the State Senate and efforts of many Assembly members, including myself, no action was taken by the governor or the Assembly Democrat majority.
Another matter that went by the wayside was school safety. For all the criticism, once again, that came out of Albany against the federal government on school safety, nothing passed that would impact school safety on the state level. I advocated for the NYS Sherriff’s Association proposal which was to provide all schools with the financial resources to employ school resource officers. Providing students the same sort of protection that the state provides to judges seemed like a reasonable way to protect students.
It is important to note that the school resource officers wouldn’t be just anyone. Under this proposal, they would be trained law-enforcement officers. In addition to their primary duty in keeping the students safe, they would have a positive presence in the school — a person who would build relationships with kids in school and, in doing so, can gain critical information needed in order to intervene and head off a tragedy. These are also the same trained law-enforcement officers who respond to emergencies in our communities when called. Many schools in Upstate are asking for this but they do not have access to funding that would pay for a school resource officer. This is where the state could have helped. Once again, the Assembly Democrat majority stonewalled this issue and decided to focus more effort on trying to implement more state policies on gun control.
We needed a session to focus on what can be changed to improve New York and pass policies that will move our state forward. In addition to ethics reform, school safety, and lower taxes, we need to increase penalties for drug dealers, protect victims of domestic violence, and lower property taxes. These are the issues that our constituencies are asking Albany to tackle, not Washington, DC. I will continue to be a voice in Albany that pushes for these and other measures that upstate residents seek.
William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.
When It Comes to Trump, There is a Little Secret
President Donald Trump confounds his critics and friends. Maybe he confounds you. But you can understand a lot about Trump if you follow my friend John’s advice. John is a big-time corporate headhunter. He finds people to fill jobs that pay multi-millions. He gets paid only if he finds the perfect executives. When they flop,
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President Donald Trump confounds his critics and friends. Maybe he confounds you. But you can understand a lot about Trump if you follow my friend John’s advice.
John is a big-time corporate headhunter. He finds people to fill jobs that pay multi-millions. He gets paid only if he finds the perfect executives. When they flop, he loses much of his fee. So he is careful in his work.
“Ignore most of what a job candidate promises,” is John’s advice. “But focus, utterly focus, on what he or she has done. His or her past reveals the likely future.”
This is the secret if you wish to understand Trump. Focus on what he did as a developer.
Consider the critics, the commentators, bureaucrats, diplomats, world leaders, and other politicians. The multitude he confounds and confuses. Few of them have worked in business. Fewer have owned a business. Virtually none have signed paychecks for armies of workers. Few, if any, have negotiated as developers must every day. Few even understand what a developer is and does.
A good developer dreams. You see a swamp and he dreams of a shopping mall. You see sand and water and he envisions a resort and golf course. You see wasteland and he dreams of a housing development.
A good developer imagines what others cannot. What others scurry from as risks, he sees and seizes as opportunities. He brims with confidence when others bog down in fear.
A good developer negotiates endlessly. Haggling is the lifeblood of his business. He must push and shove, cajole, persuade, pressure, compromise, and flex — with zoning overlords, politicians, lawyers galore, sellers, unions, contractors, and suppliers. And inspectors, bankers, investors, and tenants.
Is it any wonder great developers are great persuaders? They must persuade to survive. Is it any wonder Trump negotiates totally differently from Hillary Clinton, Barack Obama, John Kerry, as well as previous presidents? His history is as different from theirs as steel from marshmallow.
Is it any wonder Trump created a video for North Korea’s Kim Jong-un and crew to view in Singapore? Most critics ignored it or downplayed it. A few scoffed at it. This is because they know so little of business. And they know nothing of how developers persuade.
The video projected the dream of prosperity for Kim’s country. It imagined resorts on the sands where Kim launches missiles. It urged Kim to dream of a wealth of goods to replace the poverty his people suffer. It portrayed high-speed trains and skylines of handsome buildings. (Watch the video for yourself. Google “White House Film for Kim.”)
Leading up to this, Trump rattled sabers. He lined up support from China, South Korea, Japan, and other neighbors. He invoked sanctions and threatened more. He displayed our military might — and made clear we would use it if Kim continued to play idiot.
This is how a developer would approach the politicians of a big city. “Let us dream together of turning your unused railyards into a shopping mecca. Imagine this swampy area as the future home of a sports arena. We have lined up support throughout your city. However, if this does not win your favor, we don’t need to be here. Philadelphia is begging us to come. So is Baltimore.”
Does this sound like the approach Obama, Clinton, and Kerry took with Iran? They negotiated a flimsy agreement. They wrote checks for countless billions. They were rolled. They thought they had persuaded Iran to change the nuclear future of the country. Right. They did little more than persuade Iran to take a planeload of cash.
A good developer has many tricks of persuasion up his sleeve. Trump does. Many of them will confound critics, diplomats, and bureaucrats in the future. Because they do not understand business. They are ignorant of how developers think and work. They peer through lenses crafted from their own experiences. Experiences so different from Trump’s.
The secret to understanding much of what Trump does now is to know what he did, as a developer. His past achievements will likely be reflected in his future.
Critics reading this will howl that some of his past projects failed. They did. A mighty small percentage of them. Better to look at what he did in their wake.
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home in upstate New York. You can write to Tom at tomasinmorgan@yahoo.com. You can read more of his writing at tomasinmorgan.com
2018 Architecture & Engineering Directory
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Welch Allyn board co-chair discusses decision to sell company to Hill-Rom
SKANEATELES FALLS — The board of directors of Welch Allyn Inc. decided to sell the Skaneateles Falls–based manufacturer of medical-diagnostic equipment to Hill-Rom Holdings Inc. (NYSE: HRC) to get more “scale and relevance” in a consolidating health-care industry. That’s according to Eric Allyn, co-chairman of the Welch Allyn board of directors and a Welch
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SKANEATELES FALLS — The board of directors of Welch Allyn Inc. decided to sell the Skaneateles Falls–based manufacturer of medical-diagnostic equipment to Hill-Rom Holdings Inc. (NYSE: HRC) to get more “scale and relevance” in a consolidating health-care industry.
That’s according to Eric Allyn, co-chairman of the Welch Allyn board of directors and a Welch Allyn founding family member.
Allyn is the great grandson of company co-founder William Noah Allyn.
He spoke with CNYBJ on June 18, the day after Hill-Rom announced its planned acquisition of Welch Allyn for about $2.05 billion in cash and stock, which is expected to close in September. Hill-Rom, a medical-technology company, has corporate offices in Chicago, Illinois, and Batesville, Indiana, according to its website.
Welch Allyn’s board of directors started the process “a number of months ago,” says Allyn.
“Those discussions became more and more frank over the last few years as the business pressures became … started to limit our growth,” he adds.
John Greisch will be the CEO of the combined company. Hill-Rom expects that “certain members of Welch Allyn’s senior management will join the company.”
Welch Allyn CEO Steve Meyer will have an “interim role,” and the firm currently has executives “who will no longer be with us when this transition is done,” says Allyn.
It’s a “small number” of executives, and they “know who they are,” he adds.
CNYBJ also asked if the campus in Skaneateles Falls would retain the Welch Allyn name.
“It will stay Welch Allyn,” says Allyn. “Our brand is absolutely going to survive this.”
He noted that Hill-Rom spent “a lot of money” for the Welch Allyn brand.
“This by far is a better path for our Skaneateles facility than a go-it-alone path,” says Allyn.
Changing industry
Allyn remembers the days when individual doctor’s offices were their own businesses and “made up their own mind” to buy medical products.
“We kind of liked that,” he says.
Over the last 10 to 15 years, doctor’s office groups have merged with one another and formed multi-specialty clinics. The process has included hospitals acquiring the clinics and perhaps other hospitals, and in some cases, insurance companies then bought the hospital.
“And so today’s health-care system is a hugely consolidated business,” says Allyn.
He then went on to explain what the consolidation means for Welch Allyn.
In days gone by, an individual doctor bought products “based on quality.”
Nowadays, the doctor isn’t making the purchasing decision. Rather, a purchasing agent in an integrated-delivery network (IDN) makes that choice.
The U.S. has about 50 IDNs, says Allyn, which he describes as “massive organizations.” He noted that Trinity Health, which St. Joseph’s Hospital Health Center of
Syracuse is joining, is an IDN.
Allyn contends that a sourcing manager is making the purchasing decision as the individual seeks the “lowest possible price” when seeking to purchase not one device, but 200 such products.
“This has really hurt the pricing of our products,” says Allyn.
Besides the pricing aspect, Allyn contends the industry’s consolidation has also “hurt” Welch Allyn’s business.
Doctors and hospitals know Welch Allyn, but the IDNs don’t, he says.
“We don’t have relevance because we’re not big enough relative to our customers,” Allyn contends.
At the same time, Hill-Rom addresses both concerns, Allyn says.
The firm answers the relevance question because every IDN knows Hill-Rom. The company can help Welch Allyn “when it comes to pricing because we can bundle.”
Bundling involves selling several products or services in a package deal.
He says Welch Allyn’s biggest competitors are Fairfield, Connecticut–based General Electric Corp. (NYSE: GE); Amsterdam, The Netherlands–based Philips (NYSE: PHG); and Berlin, Germany–based Siemens AG, which “have a huge bundle” and can protect their prices.
“Together, Welch Allyn and Hill-Rom will be able to do just that,” he adds.
Hill-Rom also provides Welch Allyn the “global reach” it has been hoping to secure, says Allyn.
The company has tried it, but Allyn noted “the truth is it’s tough.”
Hill-Rom has a “huge” international business. The combined company’s international business will be over a billion dollars
As a point of comparison, Allyn says the local company has one employee in France, while Hill-Rom generates $100 million in sales in France annually.
He mentioned similar situations in Germany and India. Welch Allyn has two sales people and a service employee in India, which has a population and hospital count that is “quite a bit bigger than America’s.”
Hill-Rom has a presence in India, China, and Russia, enabling its sales representatives to offer more than the company’s beds and operating-room equipment.
“They’re going to be able to sell our blood-pressure gauges … odoscopes, thermometers, and monitors,” says Allyn.
Hill-Rom expects the combined company will generate $2.6 billion in revenue and produce more than $500 million in adjusted EBITDA.
EBITDA is short for earnings before interest, taxes, depreciation, and amortization.
Local impact
The 75 Welch Allyn shareholders will own 13 percent of the combined company and “will be the biggest [single shareholder group] in Hill-Rom by far,” says Allyn.
When asked if any members of the Welch Allyn board become part of the Hill-Rom board of directors, Allyn indicated it has “not been determined.”
“What’s been important has been our employees and our brand and having the Welch Allyn name survive,” says Allyn.
When asked about the Welch Allyn employee count, Allyn says that Hill-Rom has a “tremendous commitment” to the Skaneateles Falls and Tijuana, Mexico facilities of Welch Allyn.
“They want our efficiency. They want the people of Skaneateles and the people of Tijuana. They love what we do here,” says Allyn.
He also noted Hill-Rom hasn’t made decisions on its existing facilities “and where those products will go.”
Allyn also shared what Hill-Rom CEO John Griesch told Welch Allyn employees during a visit on June 17.
“You folks are very efficient. You build products really well, and if you keep doing that well, we could bring a lot more products here,” Allyn says, paraphrasing Greisch’s comments.
Allyn also noted that he “can’t talk about individual jobs” because some people “might not be here next year in an individual level.”
Before being acquired itself, Welch Allyn had made several acquisitions in recent months, including buying most of the assets of White Plains, New York–based
Scale Tronix in May; Knoxville, Tennessee–based Hubble Telemedical in January; and HealthInterlink of Omaha, Nebraska in December.
CNYBJ asked if the transactions played any role in preparing Welch Allyn for the Hill-Rom acquisition.
Allyn says they are related, noting the firm “did that to try to scale up ourselves.”
Welch Allyn is marking its 100th year in business in 2015, and CNYBJ asked if the acquisition announcement was planned to coincide with the anniversary or not.
“It just played out that way,” says Allyn.
Contact Reinhardt at ereinhardt@cnybj.com

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