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The Impact of Media Coverage on your Reputation
As public-relations professionals, a lot of what we do involves managing an organization’s reputation. For the most part, the more media attention your organization receives, the more your stakeholders will recognize you. But today, visibility isn’t enough. It’s the content of news stories that determines whether your audiences will have a favorable impression of you. So […]
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As public-relations professionals, a lot of what we do involves managing an organization’s reputation. For the most part, the more media attention your organization receives, the more your stakeholders will recognize you. But today, visibility isn’t enough. It’s the content of news stories that determines whether your audiences will have a favorable impression of you.
So how do you know whether the content was good or bad? And what do you do with that information? Having someone on your team who can conduct in-depth analyses of your media coverage, including the tone of the stories — whether they are positive, neutral, or negative — on a regular basis will significantly improve your communications strategy, support your overall business goals, and your reputation.
This type of analysis helps you to not only measure the success of your public-relations initiatives, but also provide well-informed advice for real-time decisions that the organization is making.
Both the quantity and quality of media coverage for your organization directly correlate to how much the public trusts, likes, and supports you. That coverage even determines the characteristics that are associated with your organization as opinions are formed.
So remember, a large amount of media clips doesn’t mean a positive reputation. Ask yourself if your messages are truly getting across to your audiences. Make sure you know which reporters lead the conversations in your industry, and then strengthen your relationship with those individuals.
Are you being heard?
Crystal DeStefano is president and director of public relations at Strategic Communications, LLC, which says it provides trusted counsel for public relations, including media relations, employee relations, and community relations. Contact DeStefano at Crystal@stratcomllc.com
What does the Affordable Care Act’s Contraceptive-Mandate Controversy Mean for your Benefits Plan?
This past summer, the U.S. Supreme Court decided a monumental case regarding the Affordable Care Act’s (ACA) contraceptive mandate, with potential implications for employers across the nation offering employee health benefits. Though the Supreme Court issued a final ruling, much debate has continued regarding the rights of nonprofit and for-profit, religious-based organizations, specifically in complying
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This past summer, the U.S. Supreme Court decided a monumental case regarding the Affordable Care Act’s (ACA) contraceptive mandate, with potential implications for employers across the nation offering employee health benefits.
Though the Supreme Court issued a final ruling, much debate has continued regarding the rights of nonprofit and for-profit, religious-based organizations, specifically in complying with ACA’s contraceptive mandate. While the nation continues to wait for final guidance from the government, many organizations are left wondering how the recent Supreme Court case impacts their employee-benefits plan as they finalize benefit strategies for 2015.
The case was Burwell vs. Hobby Lobby and at issue was whether or not the Religious Freedom Restoration Act (RFRA) of 1993 protects a company from complying with a government mandate that is opposed by the owner, or owners, of the company on religious grounds. More specifically, the family that owns and operates the Hobby Lobby Corporation argued that as an organization that seeks to operate the company based on the family’s Christian beliefs, ACA’s contraceptive mandate was unduly burdensome to their free exercise of religion.
ACA’s contraceptive mandate requires non-grandfathered employers with more than 50 full-time employees to provide female health-care-plan members with coverage for more than 20 forms of FDA-approved birth control, including oral, injectable, and implantable methods, with no member cost share. This means that the employer, in the case of a self-funded benefit plan, would pay for a member’s contraception in-full.
The ruling by the Supreme Court determined that requiring closely held corporations to pay for contraceptive coverage, as required by ACA, violates RFRA. The ruling further exempted religious-based organizations from complying with the contraceptive mandate. The ruling in Burwell vs. Hobby Lobby is the first case of the Supreme Court extending religious-freedom protections to what Justice Ruth Bader Ginsburg called the “commercial, profit-making world.”
In response to the Supreme Court’s determination, the Obama Administration stood firm on its position that it is important for employers to offer comprehensive health coverage for women, and to ensure that women across the nation have equal access to health-care services.
As a sort of compromise, and to ensure coverage for female health-plan members whose employers are opposed to the idea of paying for contraceptive coverage, the Obama Administration suggested that insurance carriers, and third-party administrations (TPAs), should pay for the contraceptive coverage in lieu of the employer. This, the administration suggested, would relieve the religious-based organization of the need to pay for coverage that it opposed on moral grounds, without compromising ACA’s position on women’s health.
For TPAs that do not assume the financial risk associated with the plans that they administer, the idea of paying for contraceptive coverage would have meant a paradigm shift in the self-funding industry. The government quickly clarified that in the case of self-funded plans, the government would ultimately reimburse the plan for the cost of contraceptive coverage. Insurance carriers, on the other hand, would absorb the cost of coverage.
The administration proposed that in order to be eligible for the exemption that would shift the cost of coverage to its plan administrator, an organization would need to file Form 700, a two-page form that certifies that the organization is a religious nonprofit organization that opposes providing some or all of the services and supplies required by ACA’s contraceptive mandate.
Many religious-based organizations, such as private universities and nonprofits, immediately voiced their opposition to the requirement to complete Form 700 in order to receive the mandate exemption, on the basis that the requirement to complete the form itself inherently violated their religious freedoms. In response, the Obama Administration recently proposed that both nonprofit and for-profit organizations that did not want to complete Form 700, simply notify the U.S. Department of Health and Human Services (HHS) that they have a religious objection to offering contraceptive coverage and provide the name of their TPA, if self-funded. HHS would then notify the TPA of the employer’s decision, and would reimburse the TPA for the health plan’s incurred contraceptive costs.
This proposal still did not alleviate the overarching concern for opposing corporations, however. For many religious-based organizations, the real opposition is not in the payment for contraceptives, but in acting in any capacity as part of the delivery system of contraceptive methods to women in the United States. Such organizations continue to maintain that their religious rights are burdened by any mandates that make them complicit in the contraceptive delivery channel, regardless of what entity is paying for coverage. In response to these unresolved concerns, religious-based organizations and their health-plan administrators are left waiting for further clarification and guidance.
As the contraceptive-mandate controversy continues to unravel new elements of ACA’s compliance requirements, the unfolding events raise more and more questions regarding the rights of employers to customize employee-benefits solutions post ACA-implementation.
If your organization is philosophically opposed to the contraceptive mandate, talk to your legal counsel to determine what recourse you may have to exclude coverage for contraceptive items from your health and prescription-drug benefit plan moving forward. While the nation continues to wait for further clarity regarding possible organizational exemptions, take the time to consider your organization’s philosophy regarding offering employee benefits so that you can be prepared to take appropriate action when further guidance is issued.
Vanessa Flynn is vice president, client services for the POMCO Group.
Five Lessons from the Whiskey Rebellion
Citizens are more willing to support tax increases when they believe someone else will be paying them, especially if they think that someone deserves it. Consequently, when looking for sources of revenue, government officials like to find an unpopular vice and slap a tax on it. The earliest and first U.S. tax-inspired revolt was the
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Citizens are more willing to support tax increases when they believe someone else will be paying them, especially if they think that someone deserves it.
Consequently, when looking for sources of revenue, government officials like to find an unpopular vice and slap a tax on it.
The earliest and first U.S. tax-inspired revolt was the 1791 Whiskey Rebellion. The federal government, just 2 years old, was $54 million in debt from the American Revolution. Another $25 million was owed by the states. Combined, the debt was the equivalent of $1.975 trillion in today’s dollars.
Alexander Hamilton, the first Secretary of the Treasury, argued that the federal government should pay the entire debt to build national unity and strengthen the central government. He built a coalition of states eager to receive free federal money. Then he partnered with social reformers anxious to use a new excise tax to discourage alcohol consumption. The act became law, and President George Washington defined revenue districts and appointed tax collectors to each one.
Lesson 1: Beware of politicians who ask your permission to pick another person’s pocket. Simpler and broader methods of taxing are fairer than highly targeted taxes. The “let’s tax that guy” mentality slips into systemic oppression and incentivizes rent seeking.
Hamilton thought an excise tax on alcohol would be a luxury tax borne mostly by the wealthy, a sneaky way to make the rich pay off the debt. He was wrong.
Frontier farmers often had excess grain and needed to get paid for it. But grain was bulky and difficult to transport over long distances to paying customers. So they regularly turned their excess grain into whiskey which was easier to ship and the alcohol kept the product from spoiling.
After distilling, 1,200 pounds of wheat, oats, or rye produced just 20 gallons of spirits weighing only 160 pounds. After journeying to eastern markets, the whiskey was sold for $1 per gallon. It was one of the few cash crops for the western frontier.
Whiskey also improved with age, making it a medium of exchange for businesses west of Appalachia.
For the frontiersmen, this so-called “sin tax” was effectively taxing their currency.
And the tax increased with the proof of the spirits, ranging from 30 cents to 40 cents per gallon. To the average consumer, the tax was $1.50 a year. But for the farmers, the government was taking $6 of their annual $20 income. They relied on this cash to purchase their supplies for the full year.
Thus, in an attempt to tax liquor sales in Philadelphia, Congress effectively killed the entire economy of frontier farmers.
Lesson 2: The economy is complex. Advocates of big government believe controlling the economy is simpler than it is. Advocates of the free market have a more humble attitude toward our lack of ability to dictate everyone’s behavior.
What made the taxation of 1791 worse is that many of these farmers were veterans of the Revolution. They had just fought a war over onerous British tea and stamp taxes, only to be betrayed with even higher whiskey taxes.
In response to the excise tax, some 7,000 frontiersmen rose up in western Pennsylvania to protest. They called on delegates to attend a more formal assembly.
The convention petitioned the government with a list of grievances. They modeled their actions after the American Revolution. The tax was reduced by a penny, but still no one paid it.
Tax collectors were tarred and feathered. Even some who collaborated with federal officials and paid the tax had their stills destroyed.
Lesson 3: The fairer the tax, the less violent the response. The fairest tax would be a head tax in which everyone owed the same amount. Anything more complex can pit one faction against another and incite rebellion.
Hamilton counseled Washington to put down the rebellion and inspire the fear of punishment in the new citizens. Washington raised an army of 13,500 men. Hundreds of suspects were rounded up and detained in corrals. Twenty were put on trial. Two were convicted and later pardoned by Washington.
Lesson 4: If a law is not worth an army, it shouldn’t be a law. Every government decree should meet this very high standard. It must be so important that it is still worth doing even if the government has to create an army to enforce it. Every government tax or regulation requires force or the threat of force to be meaningful. Legislators should ask themselves, “Is this law worth raising an army and fighting the citizens over?” If the answer is no, their vote should be the same.
Jefferson had already resigned from the cabinet at the time of the Whiskey Rebellion, but he communicated his thoughts to James Madison: “The excise law is an infernal one. The first error was to admit it by the Constitution; the second, to act on that admission; the third and last will be, to make it the instrument of dismembering the Union and setting us all afloat to choose which part of it we will adhere to.” Needless to say, just after being elected president, Jefferson hastily abolished all the excise taxes.
To this day, historians disagree on how much Hamilton sought to provoke violence to justify strengthening federal control. Some call it conspiracy theory. Others quote Hamilton’s own words in support.
Although the quelling of the Whiskey Rebellion established the sovereignty of “We the people” to tax and oppress any selected group, it did not raise much in taxes. Even after the rebellion was pacified, the tax was still largely uncollectable.
Jefferson repealed the Whiskey Tax as well as all other internal taxes as soon as he became president in 1801. He claimed that closing the bureaucracy and overseeing tax offices made the taxes unnecessary. He also ran a surplus for his years in office, enabling him to pay down the debt from $83 million to $57 million by 1811. The discontent subsided.
Lesson 5: Tax cuts can cause a government surplus, whereas tax increases can cause rebellions.
David John Marotta is president of Marotta Wealth Management, Inc., which provides fee-only financial planning and wealth management at www.emarotta.com. Megan Russell studied cognitive science at the University of Virginia and now specializes in explaining the complexities of economics and finance at www.marottaonmoney.com
Six tips for improving your business communications
It’s easy to roll your eyes and complain about the state of business communications. I mean everything from incomplete, inaccurate, and confusing emails and memos to meeting minutes and reports that don’t make sense. Ineffective business letters, most of which are peppered with the first person singular pronoun, are fodder for the recycling bin. All
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It’s easy to roll your eyes and complain about the state of business communications. I mean everything from incomplete, inaccurate, and confusing emails and memos to meeting minutes and reports that don’t make sense. Ineffective business letters, most of which are peppered with the first person singular pronoun, are fodder for the recycling bin.
All this results in errors, causes confusion, wastes time, creates aggravation, and puts even capable workers at an advancement and career disadvantage, not to mention the negative implications for their employers.
It’s a wonder that productivity, which is dropping, isn’t collapsing. However, it’s irrelevant whether or not the ability to express oneself clearly and accurately is at an all-time low. It’s not enough to identify a problem; the test is what you can do about it. Here are suggestions on how to get (really) good at business communication:
1. Put it in writing. It’s easy to “talk stuff” or text and assume that’s sufficient. It isn’t. Just ask Amazon’s Jeff Bezos, who says, “There’s no way to write a six-page, narratively structured memo and not have clear thinking.” Few people can accomplish the task.
“Writing is the primary basis upon which your work, your learning, and your intellect will be judged — in college, in the workplace, and in the community,” states Marquette University.
Writing clarifies thought, uncovers false assumptions, helps articulate worthwhile questions, and stimulates feedback. All of which are essential qualities for success in business.
2. Start at the beginning. The worst mistake is to assume that readers or listeners will figure out what’s important about your message. They won’t.
For example, wading through a half-dozen long paragraphs of a newsletter’s lead article before getting to the main point asks too much of any reader. Simply moving the last paragraph to the beginning would make it interesting and compelling. The way to capture the attention of readers and listeners is to start at the beginning.
3. Have a plan. If you don’t have a plan, the reader or listener won’t bother with it. Although we’ve all had too many experiences like this, few learn from them.
Too often we start typing with only some vague idea where we’re going. And we never get there. To avoid a “stream of consciousness” calamity, here’s a sure-fire outline that works wonders in any type of business communication: Problem/Solution, and it’s useful for almost every subject. For example, “Why we need to make a change in our product line” may be your topic.
– Problem. A discussion of reasons how and why the problem developed.
– Solution. After laying this groundwork, present the solution to the problem, which includes why it overcomes each of the reasons that caused the original problem.
Then comes the call to action, the steps to take to move forward and resolve the issue.
4. Put your work to the test. If experienced writers, and even the most famous wordsmiths, require an editor, it only makes sense that the rest of us do, too. The only way to improve and to make sure the message is clear and on target is to find someone who can help. And it doesn’t need to be a “professional.” It can be a co-worker, friend, partner or spouse, or really anyone who is meticulous and likes language.
Your “editor” should be encouraged to point out inconsistencies, errors of fact, lack of clarity, and make suggestions for improving your work. That’s the gold standard, so be sure to come up with ways to say thank you.
5. Rewrite. However much you do it, it’s never enough. Someone said, “Hey, this isn’t the Gettysburg Address, it’s just a monthly wrap-up.” That’s the problem: business communications are not worth the effort.
The designers could have said that about the Apple TV remote control. Hold one in your hand and you’ll see that its simplicity and elegance are compelling. Just three buttons, not a dazzling array of dozens. It took time, effort, and commitment to go from 50 or more buttons to three. Forceful and persuasive business writing, presenting, and speaking take rewriting. We never do our best work the first time.
6. Slay the good business-communication killers. They may seem minor, but they can do big-time damage:
– Needless words. Extra words are “filler” and obscure the message. They’re like plaque in arteries, clogging the flow of ideas. It takes practice, but getting rid of unnecessary words is a big step for improving communication.
– Jargon. Stay away from it; if in doubt, don’t use it. It’s showy, sophomoric, and off-putting. Those who are insecure use “in” words, attempting to convey that they know what they’re talking about. Actually, they don’t.
– Adjectives and adverbs. Avoid adjectives and adverbs. Like lights in Las Vegas, they add glitter and call attention to themselves. Practice writing without them and watch your writing improve.
– Active vs. passive voice. The active voice is easier to understand. Here’s the difference: Active: “The supervisor stole the product report.” Business writers use the passive to soften a statement: “The new product report was stolen by the supervisor.” Also, the passive usually adds words.
– Short paragraphs. The eye rebels at the sight of a long paragraph. Two or three sentences work well. At times, even one will do it.
– Exclamation points. Mostly ineffective and pointless. Never more than one; preferably none. Let what you write give the emphasis.
– Short words. Using them makes writing and presenting more natural, and easier to understand and follow. Sprinkling your text with long words interferes with clarity.
– Simplicity. Ask yourself, “Will anyone misunderstand or be confused by what I’m saying or how I’m saying it?” Be ruthless. Unclear thinking causes confused communication.
Putting our words in front of others or making presentations involves risk and puts us to the test. Yet, whatever our aspirations and wherever we find ourselves, success depends on the well-honed skills of writing and speaking — or being really good at business communications.
John Graham of GrahamComm is a marketing and sales strategist-consultant and business writer. Contact him at jgraham@grahamcomm.com or visit johnrgraham.com

First Niagara to close 17 branches, including one in CNY
BUFFALO, N.Y. — First Niagara Financial Group (NASDAQ: FNFG) on Friday announced that it will close 17 branches and two offsite drive-thru locations across its
M&T Bank profit slips 6 percent in the third quarter
BUFFALO, N.Y. — M&T Bank Corp. (NYSE: MTB), the Syracuse area’s largest bank ranked by deposit market share, earned $275 million, or $1.91 a share,
Report: CNY metro areas post job declines in the last year
The Syracuse, Utica–Rome, and Binghamton regions lost jobs in the last year, as the state unemployment fell from 6.4 percent to 6.2 percent in September,
Cazenovia’s Tierno sets goals for final 21 months before retirement
CAZENOVIA — A renovation project and a new curriculum are two of the objectives that Cazenovia College President Mark Tierno hopes to meet in the final 21 months of his tenure leading the college. Tierno has announced plans to retire from his position on June 30, 2016. He made the announcement during a recent campus-update
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CAZENOVIA — A renovation project and a new curriculum are two of the objectives that Cazenovia College President Mark Tierno hopes to meet in the final 21 months of his tenure leading the college.
Tierno has announced plans to retire from his position on June 30, 2016.
He made the announcement during a recent campus-update gathering, Cazenovia College said in a news release issued Sept. 25.
In his remarks at that event, Tierno thanked his colleagues for their work to improve Cazenovia College and for their work in achieving “quite a bit over the … 15 years that I’ve been president.”
In an Oct. 8 interview with the Business Journal News Network, Tierno says, “We’ve advanced the college significantly. We’ve improved retention of students.
We’ve improved fundraising. We’ve improved our physical plan. We’ve worked on and improved our academic program offerings.”
Tierno, whose tenure began in July 2000, is third-longest-serving president in the school’s 190-year history.
In his remaining time, the college has plans for a capital project on its studio-art building, which Tierno described as “a distinctive part of the Cazenovia community as well as the campus.”
“The trustees made the decision to renovate that building … and we’re going to expand it,” says Tierno.
The 15-month, $3 million project on one of Cazenovia College’s “oldest buildings” begins in May, he adds.
In addition to the renovation project, the school is also planning to add a curriculum in finance and financial services.
Cazenovia College has been working with people in the Syracuse financial-services industry who want to find more “well-prepared, early-career people to enter financial services,” says Tierno.
He knows Cazenovia College has plenty to accomplish before his successor begins work in July 2016.
“Many active agendas here … will keep us busy for … my remaining [nearly] two years here,” he says.
Accomplishments
In its news release announcing Tierno’s upcoming retirement, Cazenovia College provided a list of college accomplishments during his tenure.
Enrollment during his presidency grew from 719 full-time students in the fall of 1999 to 963 full-time students this fall, a 34 percent increase during the 15-year period.
In that same time span, its application volume rose from 918 in 1999 to 2,599 for the fall semester 2014, an increase of 183 percent.
Cazenovia College also added the school’s art and design building, which opened in the fall of 2004.
The facility is now known as Reisman Hall following a $2 million naming gift from the DeWitt–based Dorothy and Marshall M. Reisman Foundation, which Cazenovia announced in October 2009.
It represents the largest single gift in the college’s history, the school said.
The facility that houses the college’s art gallery and its interior design, visual communications, and photography programs represents the first new academic building built on campus in 40 years.
The campus also added Christakos Field, a turf field that meets the needs of the school’s Division III men’s and women’s lacrosse and soccer program. Athletic programs in the Cazenovia Central School District and other youth-sports programming in the community also use the field.
The school credits the “extraordinary generosity” of the Christakos family in 2012 for the turf field.
Cazenovia College also points to a “surge” in fundraising and philanthropy during Tierno’s tenure.
The school in 2010 launched its first-ever capital campaign. Dubbed the “Building Futures One at a Time: The Campaign for Cazenovia College” it has exceeded its $10 million goal, early in the fifth and final year of the fundraising campaign.
“The funding has been targeting a number of different goals,” Tierno says, noting the renovation of the studio-art building is among them.
The college has raised $2 million of the $3 million for that project, according to Tierno.
Cazenovia College also used proceeds from the campaign for the $1 million Christakos Field and a $1.5 million renovation of the school’s science laboratories
This past April, James “Jimmy” St. Clair of Houston, a retired chemical engineer, made a $1 million commitment to the school in memory of his wife, the late Jill
Hebl St. Clair, a 1962 graduate of Cazenovia College.
The donation will fund the establishment of the Jill Hebl St. Clair ’62 Endowed Chair in Accounting & Finance at Cazenovia College.
Contact Reinhardt at ereinhardt@cnybj.com

Work begins on Southern Tier High Technology Incubator
BINGHAMTON — The design phase is under way on the Southern Tier High Technology Incubator, which the state describes as a “major” economic-development project in downtown Binghamton. Binghamton University broke ground on the project on Oct. 2. The incubator seeks to be an “entrepreneurial ecosystem for emerging high-technology companies” and should help create more than
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BINGHAMTON — The design phase is under way on the Southern Tier High Technology Incubator, which the state describes as a “major” economic-development project in downtown Binghamton.
Binghamton University broke ground on the project on Oct. 2.
The incubator seeks to be an “entrepreneurial ecosystem for emerging high-technology companies” and should help create more than 900 jobs within the next nine years, the state contends.
The Southern Tier regional economic-development council (REDC) endorsed it as a priority project and awarded it $7 million to support the construction of the $19 million facility.
Empire State Development (ESD) approved the grant during its meeting on Aug. 27 in New York City.
The project aligns with the Southern Tier REDC’s plan to create jobs through industry-university collaboration and high-tech infrastructure, Gov. Andrew Cuomo’s office said in a news release.
The facility is also included in Binghamton University’s plan for START-UP NY and will provide businesses that locate to and create new jobs at the incubator with the opportunity to operate tax-free for 10 years.
Companies involved in the START-UP NY program will be “major” participants and need to have a “strong connection” to Binghamton University’s academic and research mission, Harvey Stenger, president of Binghamton University, says in an Oct. 14 interview with the Business Journal News Network.
“That means that they have to have a faculty sponsor and they have to have student involvement,” he adds.
The START-UP NY program is a state initiative that helps an entrepreneur start, expand, or relocate a qualified company in a tax-free zone.
The five companies currently involved in the program are “small” and located in the school’s engineering complex, says Stenger. The school hopes the young firms will move into the new incubator.
“The real goal, though, is to provide an excellent environment for small, brand new businesses to start to make achievements and [move] them toward viable commercial entities,” says Stenger.
About the incubator
The nonprofit Southern Tier High Technology Incubator, Inc. formed in April 2012 to build, own, and manage such a facility, according to ESD.
It’s a nonprofit affiliated with the Binghamton University Foundation.
The school created the nonprofit with the aim of furthering and supporting the educational and scientific purposes of Binghamton University and expanding the university’s research and development capabilities.
The incubator will provide infrastructure for up to 12 businesses focusing on research and development in energy, microelectronics, and health care.
The nonprofit will use the grant funding to help in the first phase of the incubator’s design and construction. The organization wants the incubator to encourage industry-university partnerships.
A contractor, which the incubator has yet to choose, will build the 35,000-square-foot facility at the corner of Hawley and Carroll Streets and include specialized wet and dry laboratories, as well as a high-bay lab office and collaboration space.
Syracuse–based Ashley McGraw Architects, P.C. is handling the design work on the project, says Stenger.
The laboratories will include infrastructure to support companies conducting research; a hospital smart-room demonstration facility; and development and light manufacturing in areas such as energy, electronics, packaging, and health.
The facility will also house SUNY Broome Community College’s new Bridge to Entrepreneurial Excellence program.
The 900 jobs the state expects from the project could include construction staff, incubator staff, employees at high-tech tenants and anchor tenants, and new hires as firms are graduated from the incubator into the community.
Additionally, Binghamton University projects the incubator will have a direct economic impact of $25.1 million on the Broome and Tioga County economies during construction.
Following completion of construction in the fall of 2016, school officials expect the facility to generate more than $6 million in economic impact annually to the local economy.
The Southern Tier High Technology Incubator, Inc. secured funding through several sources to establish the incubator in a “distressed” part of downtown Binghamton, Cuomo’s office said.
The sources include $7 million through Round II of the governor’s regional-council initiative; $6 million from SUNY Broome’s NYSUNY 2020 Challenge Grant program award; $2 million from the Economic Development Administration; $2 million from the SUNY Research Foundation; and $2 million from the Broome County Industrial Development Agency, according to the governor’s office.
Contact Reinhardt at ereinhardt@cnybj.com

National Pipe & Plastics ramps up production at new site
“The greatest risk is to do nothing” — a sign on Dave Culbertson’s desk. VESTAL — The year is 1967. Dustin Hoffman, who played the lead in the movie “The Graduate,” is pulled aside by a friend of his parents who wants to share one word — “plastics.” The idea is that the future will
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“The greatest risk is to do nothing”
— a sign on Dave Culbertson’s desk.
VESTAL — The year is 1967. Dustin Hoffman, who played the lead in the movie “The Graduate,” is pulled aside by a friend of his parents who wants to share one word — “plastics.” The idea is that the future will be driven by plastic products.
David J. Culbertson, president of National Pipe & Plastics, Inc. (NPP), headquartered in Vestal, agrees. “This year, NPP will produce 300 million pounds of PVC pipe (polyvinyl chloride) and another 30 million pounds of polyethylene pipe,” notes the president. “Our 3,000 customers buy sewer pipe, plumbing and industrial pipe, pipe for electrical conduits, utility duct pipe, pressure-water pipe, and other products. Demand for plastic pipe keeps rising as the population grows and aging infrastructure needs replacing to ensure clean drinking water and safe sewers. PVC and HDPE (high-density polyethylene) are more economical, easier to install, last longer, and are … [impervious] to tuberculation (corrosion products on the inside of the pipe) and biofilms.”
To accommodate the increased demand, Culbertson has just completed moving his Vestal manufacturing operation into a new facility located in West Endicott.
“The company bought the 235,000-square-foot building and 45 acres about 10 years ago,” says Culbertson. “The rationale for purchasing the property was to relocate our operation in order to take advantage of lower electric rates then offered by the municipality. When it didn’t materialize, we looked at moving to Canada and Pennsylvania as alternatives. Fortunately, the rates have dropped and stabilized, which made the move to Endicott viable.”
The investment in the new facility is substantial. “The company is projecting to spend $25 million in capital investments, of which $7 million pays for infrastructure improvements such as a new electrical system, new silos, a chilled-water system, and a 70-foot-high blending tower,” continues Culbertson. “Another $18 million is allocated to investment in new extrusion machines to produce pipe faster and with a larger diameter (up to 48 inches) and in items like material-handling equipment. Add in the original purchase price of the land and building, and the total investment is $29 million … This Endicott plant now has 11 PVC lines, which will grow to 13.”
Extrusion is a process used to create objects of a fixed cross-sectional profile. In the case of pipes, plastic polymers are mixed according to a formula and drawn through a die to create the desired cross-section. At NPP, the extrusion machines generate a continuous piece by first heating the stock material, loading it into a horizontal hydraulic press, and drawing it through the appropriate die. After the pipe is formed, it is immediately cooled to assume a rigid shape (PVC) or a more flexible shape (HDPE), cut to a pre-determined length, inspected, and packed for inventory and shipping. Any pipe that does not pass inspection is recycled.
NPP also has a 150,000-square-foot manufacturing plant sited on 40 acres in Colfax, N.C. (near Greensboro), which has 12 extrusion lines. The plants have interchangeable production facilities, including duplicate die-tooling. The decision to produce in either plant is based on production schedules and the distance to the customer, since freight is a major business cost. Both plants run four shifts per week around the clock and employ their own maintenance crews. NPP has to keep track of 400 SKUs (stock-keeping units) to accommodate the various industry standards for pipe.
Key company statistics
NPP has a total of 550,000 square feet of manufacturing and office space and 102 acres in its three locations. Culbertson is the sole stockholder of both the operating company and of the real estate. The headquarters remains in the Vestal office, which utilizes 20,000 square feet of space; the remaining 145,000 is now available for lease. The company currently employs 300 people, with 180 of them located in the Greater Binghamton area. NPP was founded in 1970 and generates about $150 million in annual revenue. NPP sells its pipe primarily to the Northeast, Middle-Atlantic states, the Southeast, and the Canadian provinces of Quebec and Ontario.
“This is a very competitive business,” Culbertson opines, “made up mostly of national and international companies. JM Eagle is the world’s largest plastic-pipe manufacturer. Diamond Plastics is another major PVC-pipe producer (seven manufacturing facilities), and North American Pipe [Corp.], a subsidiary of Westlake Chemical Corp., is the second-largest pipe manufacturer in the U.S. We also compete against Royal Pipe, which is owned by Axiall, and IPEX, which is owned by Alianza. The reason we can compete effectively is because we are maneuverable. The management team can sit at a table in my office and make a decision inside of five minutes. NPP also forms long-term relationships with our customers and suppliers. The company is financially sound, and we … [run] lean, producing a quality product at the lowest cost. But most importantly, we treat people according to the Golden Rule. Our mission statement says: ‘To put God first and do the right thing.’ It’s all based on ethics and trust.”
Management team
NPP’s management team includes Culbertson as president, Matt Siegel as vice president, Michelle Suer as CFO, and John Sinowitz as director of operations. Culbertson received his bachelor’s degree from Purdue in 1973 and his M.B.A. from Ohio State in 1980. He worked for 20 different companies in 20 different industries before joining NPP in 1997 as the company’s CFO. He was promoted to president in 2003 and bought the business in 2004.
Siegel earned his bachelor’s degree in marketing from Juniata College with a certificate in finance and accounting from Rice University. He began his career with General Electric as a sales engineer and has worked for nearly two decades in the electrical, plumbing, and municipal-pipe industry before joining NPP in 2011. In his capacity as vice president, he has focused on diversifying NPP’s product line, expanding the service territory, and streamlining operations. Suer earned her bachelor’s degree in accounting from SUNY Oswego. She began her career as an auditor for a public-accounting firm before joining NPP in 1984. Suer has held positions in accounts-payable, payroll, as the controller, and was named to the position of CFO in 2004.
NPP was founded in 1970 by Robintech, Inc., which at one point owned 12 plants. The partnership dissolved in 1982 when the company was sold to the Buffton Corp. Buffton, in turn, sold the company to LCP Plastics, which also owned the Colfax plant and a facility in Ohio. LCP’s parent company, Hansen Chemical, filed for bankruptcy in 1992, and the business was run by the creditors until the last day of 1996 when Nissho Iwai Corp. bought it out of bankruptcy. The new owners bought another pipe plant in Georgia in 1999, but closed it in 2003, sold the building, and moved the equipment to North Carolina. Culbertson bought the business on Dec. 17, 2004. Nissho Iwai, which had changed its name to Sojitz Corp., was the seller. Culbertson was advised by Knox Securities Corp. and Mitsubishi Securities (USA), Inc., who acted jointly as the exclusive financial advisors.
NPP uses local professional support to assist the corporation. Johnson, Lauder & Savidge, LLP handles the accounting; Hinman, Howard & Kattell LLP offers legal advice; and M&T Bank is NPP’s primary banker.
The stock has been sold into a trust to ensure the continuity of National Pipe & Plastics. “I have a commitment to 300 families to guarantee the future of the company. That’s why I chose not to move out of the area, but to find a way to meet rising demand and to remain here,” Culbertson says. “We have grown steadily at 3 percent a year, and I see a future with 50 years of continual demand for plastic pipe. I am making marketing decisions [today] based on what the impact will be a half-century from now.”
Contact Poltenson at npoltenson@cnybj.com
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