SYRACUSE — How important is the perception of environmental responsibility to U.S. companies both large and small?  And, how much are businesses publicly promoting their sustainability initiatives?

Those are questions the Energy + Sustainability group at Eric Mower + Associates (EMA) posed in a survey of more than 300 decision makers at U.S. companies during 2013.

Syracuse–based EMA is the largest advertising agency in Central New York.

The survey focused on energy-efficiency measures within a given company in sectors that included manufacturing, health care, and higher education. EMA gathered its data at the end of 2012 and beginning of 2013 through email and phone surveys.

The respondents represented companies with annual revenue exceeding $10 million.

EMA is using the survey, which doesn’t have an official name, in communications with its clients and in efforts to attract new business, says Stephanie Crockett, account director who leads the Energy + Sustainability group at EMA.

“We haven’t done a full-fledged … release of the survey [to the public],” Crockett says. 

The survey found nearly half of respondents (48 percent) believe the perception of being environmentally responsible is important to public opinion about the business and sustaining its current business (47 percent).

About one-third also believes the perception is important to recruiting talent and generating new business, the survey found.

The EMA survey also found that 37 percent of respondents are promoting their current sustainability initiatives to the public or their respective market.

EMA conducted the survey to gain an understanding of motivations and barriers around sustainability practices and energy efficiency beyond cost savings, says Crockett.

Saving money is “the leading reason why companies undertake some sort of an energy-efficiency program,” she adds.

When companies understand customer motivations and barriers, they know how to market their products ”more appropriately,” she says.

Beyond cost savings, EMA wanted to find out what motivates the respondents and what they hoped to gain from energy efficiency.

For EMA, the survey respondents represent consumers of an energy-efficiency product or service, such as a building product, technology in a manufacturing plant, or light-emitting diode (LED) lighting, Crockett says.

“We really wanted to be able to understand and profile those motivation barriers for these various audience groups, so that our customers, our clients can understand what’s the appropriate messaging to sell to these folks,” she says.

The responding companies were “most likely” not EMA clients that the agency selected based on their industry sector, Crockett says.

“The notion was that these respondents are all the customers of our clients,” she adds. 

The respondents might also be the customers of the companies that EMA wants as clients, according to Crockett.

The survey has provided EMA an understanding of the motivations and rationale behind focusing on sustainability or energy efficiency, she says.

EMA grouped the respondents into groups based on their involvement in sustainability activities.  EMA labeled the groups as early adopters, adopters, and laggards.

Most of the early adopters, the survey found, are in the manufacturing sector.

Laggards are respondents who don’t believe in climate change, Crockett says.

“They don’t believe in … any impact that humans have on what’s happening in the environment, and they’re almost angry about the notion of energy efficiency because they just don’t buy it,” Crockett says.

Advice on greenwashing
When discussing energy and sustainability, “one of the first warning signs or buzzwords that come up is greenwashing, the notion of painting your service or project with a happy smile and a green coating,” says John Lacey, management supervisor at EMA.

He says that businesses should not fake it when it comes to embracing sustainability initiatives.

“If you’re not doing it, don’t say you do it, otherwise bad things will happen,” says Lacey.

For those people who actually “walk the walk,” there is more to the process than logo placement, he adds.

“What really matters is how you understand your market, how you implement these messages in a way that connects with your customers,” Lacey says.

Having that understanding helps the agency work with its clients and teach them how to implement credible messages once they already “walk the walk,” he adds.

Contact Reinhardt at ereinhardt@cnybj.com

The Federal Reserve Bank of New York on March 17 reported that its Empire State Manufacturing Survey general business-conditions index rose to 5.6 in March from 4.5 in February.

Even though the index was “little changed” this month, the survey indicates business conditions “continued to improve” in March, according to a news release from the New York Fed.

The survey provides a monthly snapshot of trends in the sector, says Randall (Randy) Wolken, president of the Manufacturers Association of Central New York (MACNY).

“Even incremental improvement … points in the right direction,” Wolken says.

About 30 percent of respondents reported that conditions had improved over the month, while 25 percent said that conditions had worsened, the New York Fed said in the news release.

The new-orders index climbed three points to 3.1, indicating that orders were “slightly higher,” while the shipments index inched up to 4.0, indicating a small rise in shipments.

“Those [indexes]… indicate current activity,” Wolken says.

The survey also found that unfilled-orders index fell further into negative territory, declining 10 points to minus 16.5.

The delivery-time index dropped to -3.5, indicating somewhat shorter delivery times, and the inventories index climbed twelve points to 7.1—a sign that inventory levels had risen over the month, according to the New York Fed.

Price indexes headed lower in March, and pointed to a slowing in the pace of both input price increases and selling price increases.

The prices-paid index fell four points to 21.2, while the prices-received index declined 13 points to 2.4, suggesting only a “slight increase” in selling prices, according to the New York Fed.

Labor-market conditions continued to improve.

The employment index fell five points but, at 5.9, indicated a small increase in employment levels.

The average-workweek index, holding steady at 4.7, pointed to a minimal increase in hours worked.

Indexes for the six-month outlook continued to convey a “solid” degree of optimism about future-business conditions, though to a “somewhat lesser degree” than last month, according to the New York Fed.

Besides examining the survey for trends over time, Wolken also looks to the index number to answer a key question on the outlook for manufacturing conditions, he says.

“Do they [manufacturers] continue to remain optimistic in terms of growth and opportunity?,” Wolken says.

The index for expected general-business conditions fell six points to 33.2, and the index for future new orders dropped to 36.0, down nine points from last month’s two-year high.

Indexes for future price increases inched higher.

The index for expected number of employees, though lower than last month, remained “firmly” in positive territory, the New York Fed said.

After falling sharply last month, the capital-expenditures index rose 14 points to 16.5, and the technology-spending index increased to 7.1.

“We’re probably not at the point where we’re going to see significant job growth, but the capital investments usually lead to job growth,” Wolken says.

Manufacturing is a “capital intensive” sector, which requires firms to focus on future planning, whether it’s six months, a year, two years, or more, he adds

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York.

On average, about 100 executives return responses, it says.

Contact Reinhardt at ereinhardt@cnybj.com

NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on March 14 reported a profit for the fourth quarter and the full 2013 year, compared to losses during the same periods in 2012.

But PAR’s top official indicated the firm is “not satisfied” with the results in 2013, according to its earnings news release.

PAR’s stock slipped 11 cents, or more than 2 percent, in the three trading days following its earnings report — closing at $5.07 on March 18. The stock was down about 7 percent year to date.

In addition to announcing its earnings, PAR said two members of its board of directors, citing personal reasons, have indicated they won’t seek re-election to the board.

PAR Technology reported net income from continuing operations of $245,000, or 2 cents per share, during the fourth quarter that ended on Dec. 31.

Those figures compare with a net loss from continuing operations of $3.6 million, or 24 cents per share, during the same quarter a year ago.

On a non-GAAP basis, excluding certain charges, PAR’s net income from continuing operations for the fourth quarter of 2012 was $1.2 million or 8 cents a share, PAR said.

The non-GAAP results exclude certain charges totaling $7.6 million, primarily related to restructuring of the company’s hospitality-product portfolio, as well as specific legal costs, according to the firm’s news release.

PAR generated revenue of nearly $60 million during the fourth quarter, which is down from the more than $66 million produced during the fourth quarter of 2012.

For the full 2013 year, PAR reported net income from continuing operations of $569,000, or 4 cents per share, compared to a net loss of $1.8 million, or 12 cents a share, during 2012. 

On a non-GAAP basis, excluding certain charges, net income from continuing operations for 2013 was $1.1 million, or 7 cents, compared to non-GAAP net income from continuing operations of $3 million, or 20 cents, during 2012, the company said.

PAR generated revenue from continuing operations of more than $241 million in 2013, down from the more than $245 million the company produced in 2012.

PAR Technology is “clearly not satisfied” with its operational performance in 2013, Ronald Casciano, CEO and president, said in the earnings news release.

“We are seeing early signs of momentum in our specific markets, but have more work to do to achieve consistent success. We continue to exploit our distinctive strengths including market presence, differentiated product and service offerings, strong brand and an improving portfolio of software. PAR is in a stronger position to compete effectively in our core markets in 2014,” Casciano said.

PAR Technology is “aggressively pursuing” its new product initiatives and remains “confident that our business is being positioned for future growth and profitability,” Casciano added.

Besides the financial results, Sangwoo Ahn, chairman of the PAR board of directors, announced his intent to retire from the board at the upcoming 2014 shareholders’ meeting.

In addition, Kevin Jost and James Simms, both members of the PAR board of directors, have indicated they won’t stand for re-election to the board.

Both Jost and Simms will continue serving until their terms expire at the upcoming 2014 annual meeting.

“Each of these directors has assured me his decision was not a result of any disagreement with the company on any matter relating to the [firm’s] operations, policies, or practices. The company has immediately commenced an extensive search for replacement candidates who will assist PAR in building long term value for our loyal shareholders,” Casciano said.

Based in New Hartford, PAR provides hardware and software to the hospitality industry. Products from PAR also can be found in retailers, cinemas, cruise lines, stadiums, and food-service companies. PAR’s government business provides computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.

Contact Reinhardt at ereinhardt@cnybj.com

New York state has awarded two Central New York companies and a university $250,000 each for their work on new technologies in battery and energy storage.

A total of six organizations statewide will share in the $1.4 million in funding, the office of Gov. Andrew Cuomo said in a news release.

The recipients include Custom Electronics, Inc. of Oneonta; Widetronix, Inc. of Ithaca; and Cornell University, the governor’s office said.

The technologies will help develop working prototypes that demonstrate the ability of these advanced energy-storage systems to harden the state’s electric grid and diversify transportation fuels, Cuomo’s office said.

Funding is provided through the New York State Energy Research and Development Authority (NYSERDA) and New York Battery and Energy Storage Technology (NY-BEST) consortium bench-to-prototype solicitation.

The funding will help leverage a total private investment of $2 million, according to Cuomo’s office.

The money will help to transition new energy-storage technologies with “proven” technical feasibility to a working prototype, the governor’s office said.

A working prototype is an “essential step” along the product-commercialization path and increases a company’s opportunity to attract additional investment, according to Cuomo’s office.

Custom Electronics, of Oneonta, will work with Binghamton University and use its funding to develop a new electric capacitor for power-conditioning applications to enable a smoother, consistent voltage for sensitive, electronic devices.

The new capacitor will incorporate a flexible manufacturing process. Custom Electronics also expects the capacitor to provide energy density and greater tolerance to temperature.

Cornell University will use its award to develop and demonstrate a regenerative, fuel cell energy-storage system, using a Cornell-designed membrane, to produce hydrogen.

The project seeks to reduce the cost of renewable hydrogen production, which could lead to a transition to hydrogen-powered vehicles and a reduction in fossil-fuel dependence, according to Cuomo’s office.

Another funding recipient, Widetronix, Inc. of Ithaca, will work with the Cornell Nanoscale Science & Technology Facility to enhance the power density of the Widetronix betavoltaic platform.

Betavoltaics are millimeter-scale semiconductor chips that convert electrons emitted from an embedded isotope layer into electric power, enabling “decades of power,” Cuomo’s office said.

Widetronix is targeting applications in defense, industrial, and medical-implant sectors where the technologies’ longevity, high power density, and “robustness” in harsh environmental conditions are important characteristics for “critical” monitoring needs, according to the governor’s office.

This is the third of six rounds of NYSERDA funding to help members of NY-BEST move “promising” technologies toward commercialization.

Contact Reinhardt at ereinhardt@cnybj.com

UTICA — To cavemen, an open fire was high tech. The Greeks brought added comfort when they invented central heating, and the Romans perfected it by hollowing out channels inside floors and walls to circulate the warm air from the fires in a lower level. In the 13th century, Cistercian monks in Aragon, Spain crafted a central system using hot water that created steam, an idea they garnered from the Syrians. It wasn’t until the 1800s, when James Watt invented the first practical steam engine for commercial use, that hot-water, central-heating systems became common. Commercial air-conditioning was only developed in the 20th century.

Today, heating, air conditioning, and refrigeration have evolved to become a major industry in America. “AHRI (Air-Conditioning Heating & Refrigeration Institute) represents 314 member companies with over a million U.S. workers,” says Ronald J. Passafaro, the president & CEO of ECR International, Inc., headquartered in Utica. He is also the new chairman of the Hydronics Institute, the boiler sub-section of AHRI.

“ECR has grown with the HVAC (heating, ventilation, air-conditioning) industry. In 1928, Earle C. Reed founded the Utica Companies (Utica Boiler) and at the same time started Dunkirk Radiator Corp. in Dunkirk, N.Y. His first customer was Sears Roebuck, and Sears is still our customer 86 years later,” Passafaro notes.

ECR is a major Mohawk Valley manufacturer and now employs 310 in its two locations. The plants cover more than 400,000 square feet, and the business owns all of the real estate. The company stock is held by approximately 100 shareholders who are mostly descendants of the original investors in 1928. The Business Journal estimates ECR generates annual revenue of $80 million, with most of it coming from residential boiler sales. ECR designs, manufactures, and markets hydronic and HVAC equipment for residential, commercial, institutional, and hospitality markets.

“This company has evolved as demand and the industry have changed,” notes Passafaro. “We are a boiler company first and foremost, but we also manufacture ductless air-conditioning units, through-the-wall PTACs (Packaged-Terminal Air Conditioners) for the hospitality and lodging industries, indirect water heaters, and oil furnaces. Our growth has been fueled both organically and by strategic acquisitions over the years.”

In the 1950s, Dunkirk Radiator bought the Sanitary Receiver Co., and in 1992 expanded its boiler market by acquiring Ultimate Engineering. Dunkirk Radiator purchased the boiler assets of Pennco in 1998. Utica Boiler was also active in acquiring companies that could both broaden and diversify the product lines. Utica bought EMI of Rome, which produced ductless units, and Oneida Royal Furnace, which had been manufacturing home heating since 1822. In 1999, Dunkirk Radiator and Utica Boiler merged to form ECR International (the initials are in honor of the company founder, Earle C. Reed), and post-merger, acquired Olsen Technology, Inc. of Canada and Argo Technology in Hartford, Conn., which manufactures HVAC heating-system controls.

Where it took millennia to develop heating and cooling systems, the pace of change is now approaching warp speed. “I have been in this industry for 25 years,” avers Passafaro, “and the changes are amazing. Everything today is about efficiency. Any boiler more than 10 or 15 years old is wasting energy and performing inefficiently. The new boilers are lower mass and higher-pressure drop, which simply means we are heating a smaller amount of boiler water very quickly and converting more of the energy from the fuel to usable heat. These units now convert 90-plus percent of the fuel into heat, which reduces exhaust temperatures from 380 degrees Fahrenheit (F) to as little as 150 degrees F. The 230 degree F pick-up is now heating your house rather than being wasted as chimney-flue losses and unwanted emissions of carbon dioxide to the atmosphere.”

To stay ahead of the competition, ECR focuses on innovation. “R&D is extremely important, and that is why, unlike our North American competitors, we chose to own our critical-to-success technology,” notes the company’s president. “A few years ago, ECR invested $14 million to upgrade our facilities. This included building a world-class research and development lab for hydronic, warm-air, and cooling-equipment testing. About 30 percent of the salaried staff is focused on research and development, and more than a dozen employees have degrees and Ph.D.s in mechanical and electrical and even in nuclear engineering.

“The company has also joined with Yankee Scientific, Inc. of Medfield [Massachusetts] to form a joint-venture called Climate Energy, LLC, in order to produce a green alternative in home heating and power generation. Climate Energy is focused on micro-combined heat and power technology. The company has a couple hundred systems installed that marry a high-efficiency gas furnace or boiler to a generator which produces electricity while [simultaneously] heating the home. The U.S. Environmental Protection Agency has designated this as one of only two technologies called ‘Climate Choice.’ Climate Energy holds multiple patents on the technology and application of micro-combined heat and power.”

Passafaro says the company’s success is mostly attributable to the management team. In addition to Passafaro as president and CEO; Paul Totaro is a vice president and CFO, which includes overseeing IT, HR, purchasing, and China operations; Jim McKallip is the director of engineering and quality; Mitch O’Connor is director of manufacturing; Michael LaFreniere is director of administration and responsible for accounting and human resources; and David Walsh, is director of sales. ECR also relies on regional professionals for support: Phillips Lytle of Buffalo offers legal counsel; Fust, Charles, Chambers LLP of Syracuse handles the accounting; and insurance and risk-management are provided by Gilroy, Kernan & Gilroy of New Hartford.

“Real success will come not just because of our great employees, R&D, and quality products,” asserts Passafaro, “but because it is our aim to know more about our customers than do our competitors. We need to connect with our distributors and dealers; we need to understand their business to help make money for them. That means ECR needs to be engaged, and we do this in large part through our training center, where we hold classes for our staff and customers. To educate the staff, we bring in customers to train our people about their businesses so ECR can better understand their needs and thus meet them. The education for our customers is key, because these dealers only sell and install product they feel comfortable supporting. Our motto around here is, ‘Teach them, and they will buy.’”

The ECR training and education center is located at corporate headquarters in Utica. The center offers a wide range of programs that explain and demonstrate the principles of HVAC as well as product installation, maintenance, and operation. The company features hands-on training exercises with live-fired equipment to demonstrate proper setup and trouble shooting. ECR has recently invested $75,000 in an audio-visual simulcast system to conduct web-based training sessions.

ECR prides itself on being part of the communities in which it operates. “We have had three generations of Reeds in the business and many third-generation workers in the factory,” Passafaro notes. “We’re a company with family-based values that prides itself on helping area not-for-profit corporations. [Perhaps] … the best example is when the founder’s grandson, Earle, decided to celebrate the company’s 50th anniversary in 1978 by creating the [Utica] Boilermaker. He wanted to do something that would give back to the community. Reed brought together a committee of local runners who organized a 15k race. From a modest 930 runners in 1978, the Boilermaker now attracts nearly 20,000 runners and generates thousands of dollars not only for charities but also millions to support the local economy.” Tim Reed, also a third-generation Reed and past president of ECR, now leads the Boilermaker.

Passafaro, a native of Fredonia, graduated from Le Moyne College in 1982. His early employment was in the Boston area in sales and marketing. A conversation in 1989 brought him back to Upstate to join Dunkirk Radiator with the mission of starting a new distribution model, managing the brands, and developing the sales network. Passafaro, 54, rose to become ECR’s vice president of sales and marketing and oversaw engineering. He became president in December 2010. He lives in Clinton with his wife Paula.

Central heating has clearly changed our lives. We no longer huddle around a central fireplace, but move comfortably from room to room, armed with individual room controls. It created a fashion industry, since ladies have shed their Buffalo robes and now wear gowns and dresses in the winter. Air conditioning has opened vast areas that were formerly not conducive to comfortable living and spawned new industries. In short, HVAC is a basic component of modern living.

ECR is well-positioned to grow and profit in this period of high-tech change.

Contact Poltenson at poltenson@cnybj.com