HORSEHEADS — A key Southern Tier economic-development agency has a new name and is developing a new facility at the Elmira Airport Park, offering flexible manufacturing space and support services for startups and developing businesses.

On June 30, the Ceramics Corridor changed its name to IncubatorWorks, which is a d/b/a of the parent company Alfred Technology Resources, Inc. (ATRI). ATRI is a 501(c)(3) corporation established to promote economic development in the Southern Tier by supporting entrepreneurial growth, the creation and expansion of area businesses, and the creation of jobs.

“It was definitely time to rebrand,” says Alan Rae, executive director of IncubatorWorks. “The focus on technologies associated with the ceramics industry continues at our incubators in Alfred and Corning, but the expansion to the Elmira Airport Park lets us create a broader business ecosystem than just ceramics. The new name, then, encompasses ceramics and more. We’re creating a cross between an incubator and an accelerator.”

The new incubator is located on the east end of the Elmira–Corning Regional Airport — in the building that originally housed the Schweizer Aircraft Corp. and later Sikorsky Aircraft. 

“The building contains 180,000 [square] feet of which we plan to lease 47,285 feet,” continues Rae. “The space is designed to house between five and 10 tenants, which need flexible space that supports advanced manufacturing. The Schweizer plant comes with a 40-foot-high bay space, easy truck-loading access, and plenty of parking. The plans for the new facility include creating testing-lab space, a cloud videoconferencing center, break room, offices, a redesigned entrance, adding natural light to brighten the interior, and rewiring the space to bring it up to code. In addition, the location is ideal: it’s on Interstate 86, on the airport, and near a railroad line.”

Rae goes on to say that “While the facility will be state of the art, what is even more exciting is the support IncubatorWorks can offer to startup and developing businesses, all in the Southern Tier. We serve as a hub to help develop the business plan, find financial support, and even furnish a variety of mentors. When new businesses enter the incubator here, we’ll help get their feet on the ground, give them the tools they need to grow, and plan their graduation to be successful on their own.”

IncubatorWorks has retained HUNT (Engineers, Architects, Surveyors), headquartered in Horseheads, to draw up the renovation plans. Construction is scheduled to begin this August with completion targeted for September 2016.

The total cost of refurbishing the structure is $1.5 million. ATR received a $300,000 grant from the Southern Tier Regional Economic Development Council, a $600,000 loan from the Chemung County Industrial Development Agency for renovations (incorporated into lease payments), and $150,000 from NYSEG for interior wiring. An application is pending for $150,000 from the Appalachian Regional Commission to extend fiber/broadband to the facility, install cloud-conferencing, and for other amenities. The building is owned by the Chemung County IDA, which has signed a 15-year lease with ATR. Rae says the estimated lease cost to tenants will be in the range of $7-$11 per square foot, with tenants paying for their energy consumption.

The new incubator has also partnered with Corning Community College to be eligible for the Empire State’s “Start-Up NY” program. Tenants may qualify for the following: no corporate tax for 10 years, no property tax for 10 years, and no sales tax for 10 years. “This incentive has created a lot of buzz,” avers Rae. “Add to this the low cost of operating at the incubator; our state-of-the-art manufacturing services; mentoring for business operations; grant-making help, entrepreneurial boot camps; and the inventors’ sandbox. IncubatorWorks has also partnered with Southern Tier Startup Alliance (formerly Southern Tier Innovation Hot Spot), an organization of business incubators that provides support to entrepreneurs. The alliance also works with incubators at Binghamton University, Rev Ithaca Startup Works, and Cornell University. In short, our eco environment is not limited to the Elmira, Alfred, Corning area.”

Thinking ahead

Even before construction begins on the newest addition to IncubatorWorks, Rae is already eager to add another component. “We need to create a ‘makerspace’ here in [the] Elmira [area],” stresses the executive director, “These areas are designed as do-it-yourself spaces where people gather to create, invent, and learn. Today, makerspaces typically have 3-D printers, laser cutters, software, electronics, hardware supplies, and computerized machine tools that everyone shares and access to people who know how to use them. The space helps designers and entrepreneurs to create prototypes and bring their vision to the marketplace. For years, the ability to do this was confined to large corporations, which could afford the resources and staff. Now, the ability to convert an idea quickly into a tangible manufactured product, using local skills, and potentially selling to a global marketplace is absolutely revolutionary. The tools to create enterprises are now accessible to anyone: It’s changing how companies are formed.” 

Rae has applied for a grant to create 1,000 to 2,000 square feet of makerspace at the Elmira Airport Park facility.

The idea for an area incubator originated in 1988. 

“Alfred University and Corning [Inc.] developed the original idea at a time when local defense contractors were leaving,” recalls Rae. “They created what became known as the ceramics corridor, since both [entities] specialized in the field. One incubator was located at the university and the other at Painted Post (usually identified as Corning). The incubators were established, because landlords typically prefer not to subdivide their properties into spaces of 2,000 to 5,000 square feet.”

Expansion

The Alfred location has 30,000 square feet and 30 tenant employees, and Corning has 40,000 square feet and 70 tenant employees. Both incubators are fully occupied. 

“To accommodate tenant growth and the growing demand from startup businesses, which is projected to add another 50 tenant employees [at Elmira Airport Park], we clearly needed to expand,” notes Rae. “The deal at Airport Park cost us one-tenth the price of building an addition on to either of the original incubators. It was a no-brainer.” IncubatorWorks operates with a staff of five employees — three full-time and two part-time.

IncubatorWorks has an eclectic mix of tenants. At Alfred and Corning, the incubators house manufacturers of medical devices, reinforced glass for the medical industry, energy-storage for the railroad industry, ceramic medical components, and green-cleaning. At the Elmira Airport Park facility, Rae is projecting tenants such as a 3-D printing company, electrical manufacturer, and aircraft-coating company. 

“Selecting new tenants is based on three criteria,” says Rae: “Is there a workable business plan, is the company compliant with state laws (licenses, insurance, etc.), is there a realistic means of the company supporting itself? Applicants can be startups, growing companies with two to five employees, or growing companies with products and revenue. When a company grows to 30 people, that’s usually the time for it to graduate from the incubator.”

Rae’s roots

Rae brings enthusiasm and broad industry experience to his job. “My wife says I have made a career out of ADD,” quips Rae with a twinkle. “I just can’t help being enthusiastic about the energy and creativity I see at IncubatorWorks.” Rae earned a B Sc. degree in chemistry from the University of Aberdeen in 1971 and added a Ph.D. in metallurgy and engineering materials from Newcastle University in 1976. He also earned an MBA degree from Newcastle in 1985. His career includes stints in the following industries: electronics (raw materials, circuit boards, assembly, components); ceramics (traditional, structural, refractory, electronic); alternative energy (solar PV); and water (industrial water purification). On the business side, Rae’s experience includes new-business development, turnarounds, team-building, quality management, and system deployment. In addition to overseeing three incubators, the irrepressible Rae is also the CTO of Solan Corp. in the Greater Salt Lake area, chair of the Industrial Advisory Board for the nano-manufacturing center in Boston, an adjunct professor at Alfred University, and the president of ReNew Rare Earth, Inc., located at the incubators at Alfred and Corning.

Rae has high expectations for IncubatorWorks. “In the past, too many companies started with a professor, a patent, and a prayer,” intones the peripatetic executive director. “They knew little about business or marketing a product. The idea was to start something and sell it to a big company. IncubatorWorks is a very different model. We want to attract anybody with a good idea, help to develop a product, find capital, set up a going business, and give them every incentive to stay in the area. Bottom line: I want to create not only economic activity but also ‘sticky’ jobs. My goal is to fill up the Elmira [area] incubator within a year after opening.”

In Shakespeare’s play, “Romeo & Juliet” Juliet is arguing with Romeo that the name of something does not really matter. Rae clearly disagrees. “When we focused just on ceramics, the name ‘Ceramics Corridor’ was appropriate,” stresses the executive director. “Now that we are supporting a broad range of manufacturers, IncubatorWorks does a better job of identifying us. The name is perfect.”                

SYRACUSE — The City of Syracuse’s office of innovation is working with its departments of water and public works to examine where the city has had water-main breaks “where we believe we have had weaknesses,” Mayor Stephanie Miner said as she announced that her administration will use $10 million in state funding for local infrastructure improvement, maintenance, and repair projects.

The process will involve the use of maps and GIS (geographic-information system) to evaluate which Syracuse streets are “particularly bad,” said Miner.

The mayor announced the grant funding on July 23 at 121 Nelson St. in the Tipperary Hill section of Syracuse, where the city’s water department had equipment set up for routine maintenance on a hydrant line.

New York State Assemblyman William Magnarelli (D–Syracuse) secured the grant funding.

“We, every day, are faced with news of our deteriorating infrastructure largely, frankly, as a result of the age of our city,” Miner said in her remarks.

She added that the city’s infrastructure “has become a rallying cry for me,” noting the many water-main breaks that city crews have repaired in 2015.

Syracuse has had 251 water-main breaks so far this year, according to a news release on the topic from Miner’s office. In 2014, the city had a “record” 391 water-main breaks for the full year.

City officials will also use the data to “drive towards a system where we can efficiently use this money” to operate under a “dig once” policy, Miner said.

The work will target road and water-main reconstruction and other infrastructure that crews find in the ground, she added. 

“The goal is to use this money to leverage other money from the state, perhaps federal government and local government as well, to make sure that we can have as much reconstruction-infrastructure design built as possible,” said Miner.

Crews won’t handle any new construction with funding from the grant during this construction season, Miner added.

Syracuse will use some of the funding for new technology as well, said Miner.

She talked about technology that Boston and cities in Japan are using for similar problems.

They drop sensors into water mains to measure their exteriors for “potential weaknesses, so city crews can conduct preventive maintenance.

“The most expensive maintenance you can do is when it’s already broken,” said Miner.

It’s “obvious” that the city of Syracuse has “infrastructure needs,” Magnarelli said in his remarks at the Thursday morning event. 

“I hope it also lets people know, especially in Syracuse, that state government is there; that we are looking for ways to help; and that we will be advocating for more infrastructure monies, not only now but in the future as we go on,” he added.        

Editor’s Note: CNY Executive Q&A is a feature appearing regularly in The Central New York Business Journal, authored by guest writer Jeff Knauss, who is president of his own digital-marketing firm. In each edition, Jeff chats with a different executive at a Central New York business or nonprofit, with the interview transcript appearing in a conversational Q&A format.

In this issue, I speak with Mark Tryniski, CEO of Community Bank System, Inc. (NYSE: CBU) and its banking subsidiary, Community Bank N.A. 

Community Bank System operates more than 190 branches across upstate New York and Northeastern Pennsylvania through Community Bank, N.A. The company currently has total assets of about $7.9 billion.

Tryniski lives in Baldwinsville with his hometown sweetheart from Fulton. They have been married 27 years, and have four children, two dogs, and a cat.

JEFF: Tell us just a little bit about your background.

MARK: I was born and raised in Fulton. In high school, I thought I wanted to be a pharmacist, so I went to the Albany College of Pharmacy for one year. I did not do well there, but as is often typical for first-year college students, very much enjoyed the year. I worked and took classes part-time for a couple years. I then enrolled full time at Onondaga Community College and received a two-year business degree. I went to work for Fulton Savings Bank and got the best career advice from Mike Pollock, who is now the president. He told me “go back to school and get an accounting degree.” So I did. I went to SUNY Oswego and got a B.S. in accounting, graduating in 1985. I went to work immediately upon graduation at what was then Coopers & Lybrand (C&L), a public accounting firm in Syracuse.

I worked for C&L, which subsequently became PWC (Pricewaterhouse Coopers). After nine years as a partner, I was advised that if I wanted to grow further with the firm, I needed to relocate to a bigger office like Boston or New York City, which I did not want to do. I was born and raised here. My family and friends are here. I love Central New York and was determined to stay. At that time, the chief financial officer of Community Bank System, a previous client of mine while at PWC, announced his retirement. I reached out to the CEO and was brought on as CFO in 2003. My predecessor, Sandy Belden, retired in 2006, and the board appointed me as president and CEO. 

JEFF: Tell us about the growth trajectory of Community Bank System. 

MARK: Over the past 12 years, the company has more than doubled in size. Our earnings and returns to shareholders have grown even faster than that. A fundamental goal of any business should be to grow your revenues faster than your expenses. I think we have done a fair job, as we’ve grown larger, of creating above-average value for our shareholders. Our average annual shareholder return over the past 15 years is nearly 13 percent. We’ve completed many acquisitions, probably a dozen in the past 10 years. Some have been whole banks, some have been branch purchases from large banks, and several have been acquisitions of wealth management and benefits-administration businesses. (Editor’s note: Community Bank System expects to close on its latest deal, a $142 million acquisition of Oneida Financial Corp. (NASDAQ: ONFC), in October.). We’ve also grown organically by executing on our business plan in our markets to grow our banking business, our wealth-management business, and our benefits-administration business. Our growth model has been an effective combination of organic and acquired growth.

JEFF: Is there a philosophy that your organization has maintained and you attribute to the growth of Community Bank?

MARK: If there’s one word I would use to describe what we try to achieve in terms of operating philosophy, it is discipline. We try to be disciplined around the important value drivers of our business, including credit, capital deployment, cost efficiency, and M&A activity. We try to bring discipline to everything we do. We think that’s a model for success and optimal performance, particularly in the banking industry because it’s very highly regulated and if you look at the products and services that banks offer, they’re relatively commoditized. The distinction between a high-performing institution and the alternative is the discipline you bring to how you manage and operate your organization.

JEFF: How would you describe your leadership style? 

MARK: I try to live our values and be disciplined every day. That’s job number one. 

The way I think about my role is not that 2,300 employees report to me, but that I work for them. They’re the ones creating value for our organization day by day, customer by customer, not me. It’s my job to ensure they have the training, the resources, a productive work environment and the support they need to be successful in serving our customers and our communities. It’s also my job to ensure recognition for their efforts, proper compensation, and availability of career development and advancement opportunities. I judge my success by their success. I work for them,

Success is rarely about the CEO, but it is about the senior leadership team the CEO assembles. Business success is a team sport; it’s not chess. My senior management committee consists of 16 incredibly talented and experienced professionals. Their cumulative effort, decisions, judgments, and interactions with our staff, customers and others are significantly more important to our success than anything I can do. 

I think in terms of management style, communication, objectivity, and full disclosure are really important. I think living our values is also very important. We do not play politics and everybody understands it’s about our customers and it’s about our shareholders. You cannot create value in an environment where good news goes upstream, but bad news doesn’t. Everyone in our organization understands if there is bad news, it’s not about crime and punishment. It is about optimizing our outcome. We cannot address issues unless we know what they are. We look forward, out the windshield and not the rearview mirror. 

A robust and free flow of information and communication up and down the chain of command is very important. I think it’s fundamentally about respecting people and the importance of their role in the success of the company. Listening is critically important. It’s a lost skill, because many people believe that as a leader, they should be doing the talking. I believe the opposite. When you have a talented team in place, you sit at the table and you listen. That’s how you learn and gain perspective. That’s how you facilitate a productive discussion, formulate your own thinking, and effect optimal decision-making.         

About the author: Jeff Knauss is managing partner & president of a digital marketing firm, DigitalHyve.com, and has always been interested in hearing successful executives’ stories. He lives in Camillus with his wife Heta and son Max. For more, check out his blog at www.CnyCeo.org