SYRACUSE — The Central New York Society for Human Resource Management, (CNY SHRM), has announced its 2014 executive committee and board of directors. The officers
UTICA — A proposed federal law would establish a national paid, family and medical-leave insurance program. U.S. Senator Kirsten Gillibrand (D–N.Y.) announced the proposal for
The federal government ran a $53 billion budget surplus in December, the third month of the 2014 fiscal year, the U.S. Treasury Department reported today.
OSWEGO — Oswego County has announced plans for the competition, dubbed “The Next Great Idea: 2014 Oswego County Business Plan Competition” (NGI), with a top prize
BUFFALO — First Niagara Financial Group (NASDAQ: FNFG) today announced changes to the banking company’s executive leadership team, including the elimination of one position, a search to fill another post, and two promotions. The Buffalo–based banking company, which is the parent of First Niagara Bank, has promoted Inder Koul to executive vice president and chief
BUFFALO — First Niagara Financial Group (NASDAQ: FNFG) today announced changes to the banking company’s executive leadership team, including the elimination of one position, a search to fill another post, and two promotions.
The Buffalo–based banking company, which is the parent of First Niagara Bank, has promoted Inder Koul to executive vice president and chief information officer (CIO), First Niagara said in a news release.
First Niagara, which ranks third in deposit market share in the Syracuse market, also promoted Julie Signorille to executive vice president and managing director of operations.
And, First Niagara also announced the elimination of the chief banking officer position. The person serving in that role, Daniel Cantara, III, will leave the banking company no later than Feb. 28, First Niagara said.
The company has also launched a search for an executive vice president of commercial financial services, the news release stated.
First Niagara promoted Koul, who joined the company in November 2012 from Columbus, Ohio–based Huntington Bancshares Inc. (NASDAQ: HBAN), where he served in the roles of CIO for that bank’s commercial, auto-finance and corporate-services groups, and as director of enterprise project-management office, according to First Niagara.
Signorille joined First Niagara in May 2010 as senior vice president and managing director-operations. She has enterprise-wide leadership responsibility for banking and card operations, consumer-loan operations, facilities, strategic sourcing and business- performance management.
Signorille previously served as vice president of U.S. operations for Symcor, a Mississauga, Ont.–based operations outsourcer to the financial-services industry, First Niagara said.
In addition to Koul and Signorille, four company officials who have been serving on the executive-leadership team will continue in their respective roles.
They include Gregory Norwood, senior executive vice president and CFO; Richard Barry, executive vice president and chief risk officer; Andrew Fornarola, executive vice president, consumer-finance group; and Mark Rendulic, executive vice president of retail banking.
Each member of the company’s executive-management team and will report directly to Gary Crosby, the banking company’s president and CEO.
Crosby calls it a “talented” leadership team.
“Each one of these leaders has a proven track record of success and a deep knowledge of our business, customers and industry,” he added in the release.
First Niagara, through its wholly owned subsidiary, First Niagara Bank, N.A., operates about 420 branches, and has $37 billion in assets, $27 billion in deposits, and about 6,000 employees providing financial services in New York, Pennsylvania, Connecticut and Massachusetts, the company said.
VESTAL — On Nov. 11, Matthews Auto Group, Inc. opened its sixth location at 3512 Birney Ave. in Moosic, Pa., about six miles south of Scranton. The dealership features “Planet PreOwned,” a trademark of Matthews Auto Group for its used cars. Moosic is the third used-car location for Matthews, in addition to the firm’s Norwich
VESTAL — On Nov. 11, Matthews Auto Group, Inc. opened its sixth location at 3512 Birney Ave. in Moosic, Pa., about six miles south of Scranton.
The dealership features “Planet PreOwned,” a trademark of Matthews Auto Group for its used cars. Moosic is the third used-car location for Matthews, in addition to the firm’s Norwich and Vestal locations. It is the family-owned business’s first venture into the Pennsylvania market.
Matthews Auto Group bought the property that was formerly the Santo Volvo/Lincoln dealership. In 2013, the former owner sold off the Volvo franchise to the Pollock Auto Group, and in 2011 it had sold the Lincoln franchise back to Ford.
“We bought a 20,000-square-foot building on 2.8 acres of land,” says Rob Matthews, president of Matthews Auto Group. “It was a turnkey operation. The only thing we had to change was the signage.” Matthews did not reveal the purchase price or any financing details, but did announce the creation of 15 new jobs, which he projects to grow to 40 employees within two years.
Headquartered at 3721 Vestal Road, Matthews Auto Group now boasts six locations with 10 franchises, including Buick, Cadillac, Chevrolet, GMC, KIA, Mazda, Subaru, Mitsubishi, Ford, and Lincoln. “The company is the largest dealer group in a two-county area,” says Matthews. “With the Moosic deal, we now have 200 employees and project $200 million in annual revenue … The retail side of the business is 40 percent [of our revenue] … from new-car sales and 60 [percent] from used-car sales. This year, we will sell 5,700 cars … Our dealerships cover 115,000 square feet [of building space], and we need 30 acres to accommodate our staff and vehicles.” Matthews Auto Group is a sub-S corporation with five siblings as stockholders. Each location has its own real-estate company.
That’s a long way from the 2,200 cars sold and $60 million in revenue when Matthews joined the family business in 2005. His late father, Jim Matthews, was a legendary entrepreneur who migrated from Ontario, Canada to the Binghamton area. He founded Matco Electric in 1965 and went on to create businesses in manufacturing, insurance, real-estate development, publishing, and brought the first professional hockey team to the area. His venture into autos was accidental.
“Doug, the second-oldest Matthews son, [was prone] … to carsickness,” remembers Rob Matthews. “For some reason, he didn’t get sick riding in Chryslers. In 1973, dad went to buy a Chrysler, but the dealer was unable to sell him one because the dealership was in poor financial shape and the inventory was on credit-hold with the lender. My father guaranteed the deal with the lender and bought the car. Shortly [thereafter], the dealership failed, and the Matthews family found itself in the auto business.”
Rob Matthews got the call from his father in late 2005. “Paul Brown had run the company for 20 years and done an incredible job. My father didn’t get involved [typically] with the day-to-day details of running a business. He much preferred to start them and focus on the big picture. However, Paul had a medical issue in 2001 that forced him to leave the business, and for several years, there was no overall direction. The dealership had fallen on hard times.
“I was in Boston at the time, working as an escrow-account officer for State Street Bank. I had an MBA from Babson [College] and sold shirts online at curse/reverse.com, a business I started for Red Sox fans hoping to end the ‘Curse of the Bambino.’ Curse/reverse.com sold shirts with the logo and a ‘Yankee Fan Conversion Kit,’ which included a vial of water from the Charles River. Red Sox fans would sprinkle the water on Yankee fans [to change their allegiance.] … I was convinced I would stay in Boston.”
The younger Matthews didn’t anticipate the effort needed to turn around the company. “I don’t think I slept [a wink] in 2006,” remembers Rob Matthews. “The business was really struggling. The Internet had put pressure on prices and driven down the margins on car sales. Consumers were in the driver’s seat, because the public had so much information. The industry was also consolidating, which put more pressure on small dealerships to compete. Then came the recession, which forced General Motors and Chrysler into bankruptcy [protection]. For us, it meant the loss of the Chrysler, Jeep, Saturn, and Pontiac franchises.”
A time for change
The Matthews Auto Group began to change in 2006. “I went to my father with a radical idea of how to restructure the business,” says Matthews. “First, we needed to re-connect with our customers. So, no more haggling about price. We’ll give our best price on every vehicle, every day and call it ‘One-Price.’ No more fake sales at the end of the month. If you have a trade in, we’ll quote our purchase price, regardless of whether you buy a car from us.
“And to prove that the customer is getting the best value, we’ll give any customer 110 percent of the difference in AutoAward points up to $1,000 if he [or she] finds a lower advertised price in New York state. We’ll call it ‘Price Assurance.’ Matthews wants a customer for life, not just to sell one vehicle.”
Then, Matthews put its sales people on commission based on volume and customer satisfaction, so they were focused on what was best for the customer.
Next, the Matthews Auto Group instituted a member-awards program. “Every customer is automatically enrolled in our AutoAwards program,” Matthews continues. “They earn points for every dollar spent on service, for referrals, and for bonuses. (Bonuses are issued for becoming a member, buying an extended service contract, choosing a Matthews financing option, rust-proofing, collision work, and out-of-state inspections.) The program can save members thousands of dollars while they own a vehicle and when they go to buy a new one [from us]. AutoAwards also offers discounts at 95 area merchants, ranging from restaurants, landscapers, hotels, clothing stores, and laser eye-surgery to athletic clubs and spas, carpet dealers, and flower shops. The merchants are happy because it drives traffic to them.”
Rob McLaughlin, the company’s operations manager, shared the following program statistics: On Oct. 24, 2013, AutoAwards included 19,478 active members who have earned $6.5 million since the program’s inception, of which $2.3 million has been redeemed.
“The … [fourth] step was to create free-standing, used-car locations,” continues Matthews. “We understood that people don’t think of new-car dealers having used cars. But, the impetus to change really came when we lost the Chrysler franchise and had an empty building. That was the time to create Planet PreOwned and brand our used-car business, even though all of our stores have used cars on their lots.
“Dad backed me on the changes,” says Matthews. “He also agreed that we needed a diversification strategy that included more dealerships and a wider geographic reach. All I can say is that it was a real leap of faith.”
Growth
Despite continuing consolidation of the industry, pricing pressures, and stiff competition, Matthews is feeling better about the 40-year-old family business. “Our sales have grown 40 percent because of the One-Price program,” avers Matthews, who is far more relaxed than he was in 2006. “We took a gamble that if we focused on what was best for the customer, our business would … [flourish]. Customers are interested not just in price, but in the whole relationship with the dealer. That means concern for service, customer relations, and recognizing that an owner’s expenses only start when … [that person] drives off the lot. We want to help to manage and control those expenses [throughout the entire ownership period].
Success has come in large part because of the management team assembled at Matthews Auto Group. In addition to Rob Matthews as president, Larry Davis is the company CFO, Megan Kosar is controller, Nelson Van Atta is the COO, and Tara Connelly is the manager of human resources. Matthews’ sister Theresa serves as the company spokesperson.
The auto group also relies on area professionals to help steer the company on its growth path. “J.P. Morgan has handled our floor plan for more than 20 years,” says Rob Matthews. “We also work with Piaker & Lyons [P.C.] for our accounting and Hinman, Howard & Kattell [LLP.] for our legal work. But our success is mostly due to the great staff at Matthews. We have a number of long-term employees who are not only well trained but also focused on the customer. I think we are doing the right thing, because people are coming to us looking for employment.”
The Matthews Auto Group has also embraced the Internet and social media to help fuel its growth. “While consumers can now search a wide geographical area in a short time and gather a lot of information, the Internet and social media give us a much broader customer base to draw from,” says Matthews. “Our competitors may now be 60 miles away, but that also means we have the opportunity to reach new customers. That’s why we put so much emphasis on our website and on Facebook, where we already have 4,200 fans. Communications is critical in our business … We have four people on staff who are posting updates.”
Matthews communicates regularly not only with its customers but also with its employees. The company’s Facebook page is filled with news about the employee-of-the-month, weddings, engagements, births, community volunteers, new hires, and promotions along with photos snapped by the staff.
At age 37, Rob Matthews is feeling more confident about the direction of the eponymous auto group. The company’s first move out of the Binghamton area came in 2012 when it bought Smith Ford/Lincoln on Main St. in Norwich. In addition to retaining the Ford/Lincoln franchise, Matthews Auto Group opened its second used-car operation at the same location. Now, in 2013, the company has expanded again to the Scranton area.
“I feel comfortable that we can manage this expansion, including extending our geographical reach,” says Matthews. “We are always looking for new dealership opportunities, but there has to be a fit and the numbers have to work. We are also interested in [acquiring] new franchises, [such as] … Hyundai and Toyota. The recession [of 2008] taught us the importance of diversifying the operation.”
Jim Matthews entered the auto business by accident. The second generation, however, has set a clear direction for the company’s future. Rob Matthews has combined his skills honed at Babson with his natural, creative spark. A guy who could figure out how to convert Yankee fans to Boston fans with Charles River “holy water” can certainly steer Matthews Auto Group on a track to continuing prosperity.
New York consumers closed out 2013 with a focus on the holidays but didn’t display much positive movement in their overall willingness to spend money. Consumer sentiment in upstate New York rose 1.7 points to 69.1 in December, according to the latest monthly survey that the Siena (College) Research Institute (SRI) released Jan. 6. Upstate’s
New York consumers closed out 2013 with a focus on the holidays but didn’t display much positive movement in their overall willingness to spend money.
Consumer sentiment in upstate New York rose 1.7 points to 69.1 in December, according to the latest monthly survey that the Siena (College) Research Institute (SRI) released Jan. 6.
Upstate’s overall sentiment index of 69.1 is a combination of the current sentiment and future-sentiment components. Upstate’s current-sentiment index of 72.4 fell 1.9 points from November, while the future-sentiment level increased 3.9 points to 66.9, according to the SRI data.
The Upstate figure was 4.5 points below the statewide consumer-sentiment level of 73.6, which edged up 0.3 points from November, SRI said.
New York’s consumer-sentiment index was 8.9 points lower than the December figure for the entire nation of 82.5, which rose 7.4 points from November, as measured by the University of Michigan’s consumer-sentiment index.
Overall, consumer sentiment statewide was “flat,” says Donald Levy, SRI director.
“If you just take a snapshot of this moment in time versus a year ago, we’re [statewide consumer sentiment is] down about five percent [for all of 2013],” Levy says.
Some demographic groups were down more than others over that time period, according to the SRI data.
The sentiment indexes for Democrats and consumers under age 55 were down “appreciably,” about 10 percent for all of 2013, Levy says. The sentiment levels for lower-income consumers (those with annual salaries of less than $50,000) were also down “significantly,” or 8 percent for the year, he added.
It was a year when consumer sentiment hovered near the break-even point (a level of 75 at which overall optimism and pessimism are balanced), but “never really got meaningfully across it,” Levy says.
That’s despite the best year for investors on Wall Street since 1997, consumers paying gas prices that are below $4 per gallon, and an unemployment rate that is down, although “not overwhelmingly.”
“We still see the mythical average consumer sitting here hopeful but cautious,” Levy says.
When compared with the previous three years, the state’s overall consumer sentiment of 73.6 is down 3.7 points from December 2012, up 6.3 points from December 2011, and has increased 8 points compared to December 2010, according to the SRI data. The sentiment index measured just 57.1 in December 2008.
Besides determining consumer sentiment, SRI’s monthly survey also examines respondents’ plans for buying big-ticket items in the next six months.
In December, buying plans rose 1.1 points to 20.4 percent for furniture and increased 2.3 points to 15.3 percent for major home improvements. Buying plans slipped 2.1 points to 11.9 percent for cars and trucks and decreased 3.4 points to 34.9 percent for consumer electronics.
Buying plans for homes remained unchanged at 4 percent, according to the SRI data.
Gas and food prices
In SRI’s monthly analysis of gas and food prices, 63 percent of upstate respondents said the price of gas was having a serious impact on their monthly budgets, up from 60 percent in November.
In addition, 54 percent of statewide respondents indicated concern about the price of gas, up from 50 percent in November, according to SRI.
When asked about food prices, 71 percent of Upstate respondents indicated the price of groceries was having a serious impact on their finances, up from 67 percent in November. About 67 percent of statewide respondents expressed concern about their food bills, up from 66 percent in November.
SRI conducted its survey of consumer sentiment in December by random telephone calls to 622 New York residents over the age of 18.
As consumer sentiment is expressed as an index number developed after statistical calculations to a series of questions, “margin of error” does not apply, SRI contends.
Buying plans, which are shown as a percentage based on answers to specific questions, have a margin of error of plus or minus 3.9 points.
New York Gov. Andrew Cuomo on Jan. 6 announced details of a more than $2 billion tax-relief proposal he says is designed to increase economic opportunity and attract and grow businesses across the state. Cuomo’s office is citing “responsible fiscal management in state government” as the reason why New York has gone from a $10
New York Gov. Andrew Cuomo on Jan. 6 announced details of a more than $2 billion tax-relief proposal he says is designed to increase economic opportunity and attract and grow businesses across the state.
Cuomo’s office is citing “responsible fiscal management in state government” as the reason why New York has gone from a $10 billion deficit to an expected $2 billion surplus.
Based on current projections, the state will see a surplus of about $2 billion by fiscal year 2016-17 if spending growth is held to two percent annually, according to Cuomo’s office.
Given the projected surplus, Cuomo proposes a more than $2 billion package of tax-relief measures to help New York residents and businesses.
Cuomo’s proposals include a two-year freeze on property taxes, cutting business taxes and treating businesses “more fairly,” a real-property tax credit for manufacturers, and eliminating the tax rate on Upstate manufacturers. The governor also proposes accelerating the phase-out of the 18-A surcharge, which is the two percent temporary utility assessment levied on commercial electric, gas, water and steam-utility bills for industrial customers.
The news release from the governor’s office explains its rationale for the business-related proposals involved.
New York’s corporate-franchise tax is “largely outdated” and its “complexity” results in lengthy and complex audit processes that take businesses years to resolve, Cuomo’s office said.
To streamline the tax structure and provide relief for businesses, Cuomo recommends merging the bank tax into the corporate-franchise tax and lowering the rate to 6.5 percent – the lowest rate since 1968, the office said.
Cuomo also proposes the creation of a refundable credit against corporate and personal- income taxes that would be equal to 20 percent of a firm’s annual real-property taxes. The credit would provide $136 million in tax relief to the manufacturing sector, according to Cuomo’s office.
Additionally, Cuomo recommends the elimination of the corporate income-tax rate for Upstate manufacturers, which is intended to encourage the growth of manufacturing.
The proposal would provide an additional $25 million in tax relief for Upstate businesses and complement the proposal to reduce property taxes on manufacturers, Cuomo’s office said.
Proposals to streamline tax collection will offset any costs of the tax-relief package exceeding $2 billion.
The proposals will increase revenue through improved audits, Cuomo contends.
Local reaction
These proposals stand to have an “immediate” impact on New York’s businesses and residents, including property-tax relief for homeowners, targeted tax reductions for upstate manufacturers, and estate-tax reform that will “greatly benefit” small-business owners, Robert Simpson, president of CenterState CEO, said in a statement issued Jan. 6.
“It is refreshing to start the year with a series of reform proposals that could meaningfully move the state forward economically, instead of preparing to fend off further escalations of New York’s already crushing tax burden,” Simpson said.
CenterState CEO believes the state is taking “great strides” to build a “competitive” business climate. The organization hopes state-government leaders will implement “as many of these measures as possible,” he added.
The proposed elimination of the corporate tax rate for Upstate manufacturers, a 20 percent tax credit of a manufacturer’s property taxes, and the proposal calling for an immediate elimination of the 18-A energy-tax surcharge will send a message that New York wants to grow its manufacturing sector, Randall Wolken, president of the DeWitt–based Manufacturers Association of Central New York, said in a statement.
“It is well-known that manufacturing is the backbone to a thriving economy. Providing New York state manufacturers with the much-needed tax breaks will enable them to do what they do best: create high-quality manufactured goods, sustain and grow family supporting well-paying jobs, and generate much-needed revenue for our state,” Wolken said.
CONKLIN — WyckWyre Food & Hospitality Online Hiring Systems, a unit of Maines Paper & Food Service, Inc., acquired Keeping It Kleen, another Maines subsidiary, on Jan. 1. It’s a move designed to further WyckWyre’s goal of helping its customers boost employee retention rates through proper training. WyckWyre did not disclose terms of the acquisition,
CONKLIN — WyckWyre Food & Hospitality Online Hiring Systems, a unit of Maines Paper & Food Service, Inc., acquired Keeping It Kleen, another Maines subsidiary, on Jan. 1. It’s a move designed to further WyckWyre’s goal of helping its customers boost employee retention rates through proper training.
WyckWyre did not disclose terms of the acquisition, which included all the assets of Keeping It Kleen and its two employees.
There is a growing realization in the food industry that a well-trained employee tends to stay with a company longer, says Lisa DiVirgilio, WyckWyre’s company director. WyckWyre (www.wyckwyre.com) has been looking for a while to create a management training system for its clients and found the perfect platform in its fellow Maines subsidiary Keeping It Kleen, she contends.
Keeping It Kleen got its start as a food-safety program for Maines customers to use. Founded in 2010, the company now provides online food-safety training to both independent and franchise locations. According to its website, www.keepingitkleen.com, it costs $29.99 per month for a 12-month membership to Keeping It Kleen, which includes 10 training modules. Additional training components cost $10 per module.
“It just made sense for us to purchase Keeping It Kleen,” DiVirgilio says. Keeping It Kleen continues to operate under its own name and offers its array of online training programs. In the future, the company’s online platform will host WyckWyre Train, a management-training program currently in development, she says.
The program will offer clients the ability to manage branded training content, assign courses to employees, and track overall progress. It will team up with WyckWyre Hire, the company’s online hiring service, and WyckWyre On Board, which offers clients the option to have applications complete their new employee paperwork electronically.
The ultimate goal, DiVirgilio says, is helping business clients find the best applicants for the job and then helping clients retain those people using just one software platform.
A well-trained employee is 40 percent more likely to stay at the job for a minimum of one year, she says. Companies that invest in a learning-management platform see, on average, a 30 percent reduction in turnover in the course of a year, she adds.
That’s important because employee turnover costs money, both in lost productivity and in the efforts to find and train a replacement, DiVirgilio says.
WyckWyre will formally launch WyckWyre Train at the National Restaurant Association Show in Chicago in mid-May, she says. As many as 60,000 restaurant industry professionals will attend the show over the course of three days, providing an ideal target audience. “You can imagine how big this will be for us,” she says.
In the meantime, WyckWyre and Keeping It Kleen are cross-promoting their services between existing clients. Some of Keeping It Kleen and WyckWyre’s local clients include Tioga Downs Casino in Nichols, Burger Mondays Bar & Grille in Binghamton, Number 5 Restaurant in Binghamton, Fly Creek Cider Mill in Fly Creek, Ithaca Ale House, and Arooga’s Grille House & Sports Bar in Pennsylvania. WyckWyre also provides hiring services on a national level for more than 900 Wendy’s locations and a number of Chili’s Grill & Bar restaurants.
WyckWyre, which launched in 2010 with just two employees, currently employs 12 people (including the two just added from Keeping It Kleen) and will add two more employees over the next several weeks, DiVirgilio says.
While she declined to release revenue figures, DiVirgilio says WyckWyre’s revenue grew 130 percent in the fourth quarter of 2013 and she hopes to see revenue grow 150 percent in 2014.
Both WyckWyre and Keeping It Kleen continue to operate from Maines’ corporate headquarters at 1010 Broome Corporate Parkway in Conklin. Maines (www.maines.net) is a privately held food-service distributor with annual revenue approaching $4 billion and customers in 36 states.
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