Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.
Creates new service division in direct mailing SYRACUSE — Dupli Envelope & Graphics recently acquired business mailing supplier Lettergraphics, Inc. to create a new service division named Dupli Direct. Lettergraphics located at 433 West Onondaga St., has been providing marketing mailing services in Syracuse since 1910. This acquisition brings traditional mailing experts to […]
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
Creates new service division in direct mailing
SYRACUSE — Dupli Envelope & Graphics recently acquired business mailing supplier Lettergraphics, Inc. to create a new service division named Dupli Direct.
Lettergraphics located at 433 West Onondaga St., has been providing marketing mailing services in Syracuse since 1910.
This acquisition brings traditional mailing experts to Dupli, according to J. Kemper Matt, Jr., president and co-owner of Dupli.
“It allows us to continue to expand on our direct-mail offering,” Matt says in a phone interview. “Now we can take the traditional direct-mail expertise and combine it with new technology to help make our customers’ direct mails more effective.”
Dupli approached Lettergarphics last December and the merger closed in mid-January. Dupli acquired Lettergraphics’ six employees, customer list, office space, and manufacturing equipment — including two traditional ink-jet printing machines. Matt declined to disclose the financial terms of the acquisition.
Lettergraphics’ employees have moved to work at Dupli’s headquarters — a 5-story 160,000-square-foot building in Syracuse’s Franklin Square. Dupli is currently looking for a buyer for the roughly 20,000-square-foot building Lettergraphics used to occupy.
“All of the Lettergraphics employees are grateful to know our legacy of high standards in both service and customer relations will be continued,” Nancy Osborn, former president and owner of Lettergraphics, said in a news release from Dupli. The Business Journal couldn’t reach Osborn for an interview by press time.
The Dupli Direct division will be led by Gary Valik. According to the news release, Valik has been working in the print advertising industry for more than 25 years.
Dupli, founded in 1965 and purchased by its current management in 1980, offers on-demand production of envelopes, corporate stationery, and marketing materials with multiplatform printing technology. It now has 152 employees and three offices in Syracuse, Trumansburg, and Malvern, Pa. (near Philadelphia). The Matt family owns the company, Matt says, declining to be more specific about the ownership structure.
Dupli’s revenue rose to $26 million last year from $25.5 million in 2011, according to Matt.
The primary objective of Dupli, Matt says, is utilizing new technology to help customers achieve their marketing goals. The company has been working with Winkler+Dünnebier GmbH Corp., a printing machine manufacturer in Germany, to develop technology of high-speed envelope publishing. In 2012, realizing that more and more customers read only the outer envelope, Dupli purchased a high-speed inkjet machine from Winkler+Dünnebier that can print marketing pitches and other information on the front of an envelope.
Dupli has a tradition of investing in cutting-edge technology, Matt says, and it will continue to do so in the future.
“The printing industry is definitely changing; print has to be updated to work better and to work smarter,” says Matt. “There is going to be less printing, but printing documents is still one of the most effective ways to communicate.”
Contact The Business Journal at news@cnybj.com
New investment commitment in place for this year’s StartFast firms
SYRACUSE — In an increasingly crowded field of startup accelerators, leaders at Syracuse’s StartFast Venture Accelerator know they need to work hard to make their program stand out. Early-stage companies have more and more options on where to turn for help, says StartFast Managing Director Nasir Ali. And accelerator programs like StartFast can draw applicants
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
SYRACUSE — In an increasingly crowded field of startup accelerators, leaders at Syracuse’s StartFast Venture Accelerator know they need to work hard to make their program stand out.
Early-stage companies have more and more options on where to turn for help, says StartFast Managing Director Nasir Ali. And accelerator programs like StartFast can draw applicants from around the world, meaning Syracuse isn’t just competing with accelerators down the Thruway for the best participants
A commitment from Sarasota, Fla.–based Sand Oak Capital Partners to invest $250,000 in this year’s StartFast companies will help separate the local program from the pack, Ali says.
“There’s been a very large increase just in the last 12 months in terms of the number of accelerator programs coming online,” he says. “We have to differentiate ourselves to rise above the noise and be seen as people who are serious and committed and able to drive results.”
More partnerships like the one with Sand Oak are likely in the future, he adds.
StartFast is a private capital-backed accelerator for software, Internet, and mobile startups. Teams already receive $18,000 in seed funding and then spend the summer working with mentors and coaches in Syracuse.
Its focus is on helping the young companies develop and validate a prototype product and secure enough funding for them to move forward with their work.
The commitment from Sand Oak is above and beyond what teams get just for participating in StartFast and the investments will come after firms have been through the program. But not all the companies will get a piece of that capital.
Sand Oak Managing Partner Jeremy Schwimmer says he’ll look for the same things in potential StartFast investments as he does when looking any possible deal. Schwimmer joined StartFast earlier this year as an entrepreneur in residence.
“I want smart, driven people who will listen, who will take advice, and are passionate about what they do,” he says. “It’s energy. It’s passion.”
Schwimmer led the successful turnaround of a metal-recycling business in Central New York and has made investments in six other companies in the area, according to StartFast. He is a member of the Seed Capital Fund of CNY.
Schwimmer has lived and worked in New York, San Francisco, Silicon Valley, and Los Angeles. He currently lives in Skaneateles.
As an investor, it’s appealing to target firms that have been through an accelerator like StartFast, Schwimmer says. It’s like a finishing school for promising startups, he notes.
“Most companies don’t go in and leave with an entirely different view of their business,” he says. “The acceleration comes from buttoning up the final points of execution.”
StartFast is part of the Global Accelerator Network. The network grew from the TechStars program that began in Boulder, Colo. in 2007. TechStars has since expanded to Boston, Seattle, and New York City and includes a separate program for companies working on cloud computing and infrastructure.
The network includes 45 accelerators around the world.
StartFast investors receive a 6 percent stake in exchange for the money program participants receive. The businesses also get access to a number of in-kind contributions from national sponsors like Google and Rackspace through the Global Accelerator Network.
Teams receive regular coaching with mentors from around the country and from Ali and the program’s other managing director Chuck Stormon.
The Seed Capital Fund of CNY (SCF) is providing 40 percent of StartFast’s $2 million in funding. The rest is coming from private investors. The initial funding round will allow StartFast to run for four years.
This is the second year of the program.
Contact Tampone at ktampone@cnybj.com
Baldwinsville, businesses plan curb-appeal project
BALDWINSVILLE — Village officials and at least one area business owner are hoping a four-way partnership is soon cemented officially so work can begin along the village’s main intersection on East Genesee Street to improve pedestrian traffic and safety. “It’s a nice project,” Baldwinsville Mayor Joseph Saraceni says of the planned work and partnership between
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
BALDWINSVILLE — Village officials and at least one area business owner are hoping a four-way partnership is soon cemented officially so work can begin along the village’s main intersection on East Genesee Street to improve pedestrian traffic and safety.
“It’s a nice project,” Baldwinsville Mayor Joseph Saraceni says of the planned work and partnership between the village, KeyBank, property owner The Widewaters Group of DeWitt, and the B’ville Diner. While a formal agreement has not yet been signed, Saraceni says he expects one in the near future so work can begin this spring. He did not provide financial details on the project.
For the village, work will include reducing the number of curb cuts (breaks or ramps built into a curb to ease passage to the street) along East Genesee Street, installing new granite curbing, and making sidewalk improvements. The overall goal, Saraceni says, is to make the area safer and more attractive for pedestrian traffic. Currently, that stretch of road has about 35 curb cuts, making it challenging for pedestrians to travel. Following the village’s central business district plan, Saraceni says a number of those cuts will be removed to improve pedestrian flow. Included in that work is the current double-lane entrance to KeyBank, which is slated to drop to a single-lane entrance.
Diner owner dishes on plans
The B’ville Diner, located at 16 E. Genesee St., will launch its own project that will tie into the village’s efforts, co-owner James Orlando says. Work has already begun to eliminate the diner’s outdoor grease trap and will also include moving dumpsters into an enclosed, landscaped area.
But the big project for the diner will be the addition of a 20-foot by 40-foot outdoor patio area that will add an additional 30 to 40 seasonal outdoor seats, Orlando says. To make this happen, Orlando will purchase land adjacent to the diner from The Widewaters Group, which owns the former Eckerd Drugs building next to the diner. He declined to disclose any financial details.
Orlando is excited about the project, not only because it will provide additional seating for his 120-seat diner, but because it will bring some much-needed greenery to the area. “There’s not a tree or a bush on our property, so I’m excited about it,” he says. Orlando purchased the diner, which employs 52 people, in 2003.
Once everyone is signed on for the project, Orlando says he’s ready to get to work and hopes to complete the work this year or by early 2014.
That falls in line with the village’s schedule, Saraceni says. “The village is looking to complete its work this spring,” he says.
The Widewaters Group, which did not respond to press inquiries, will look for a tenant for the former Eckerd building, Saraceni says. The building has been vacant for about five years.
This project is just the first of many for Baldwinsville this year, Saraceni adds. Other projects include a new $6 million housing project, a Byrne Dairy, a possible Tim Horton’s location, and an expanded senior-living facility. He expects to hold a press conference in the near future to announce further details on these projects.
The Widewaters Group (www.widewaters.com) is a real-estate development and management company with offices in DeWitt; Park City, Utah; and Charlotte, N.C. Other area Widewaters properties include the Northern Lights Plaza in North Syracuse, the Route 57 Plaza in Liverpool, and the Hinsdale Plaza in Camillus.
Contact The Business Journal at news@cnybj.com
Sequester talk doesn’t dampen consumer sentiment in Upstate
Consumer confidence among upstate New Yorkers continued to lag behind the rest of the state and nation in February, although it rose from January, according to the latest index from the Siena Research Institute (SRI). Upstate New York’s overall consumer-sentiment index rose 1.6 points to 69.9 in February, compared to the previous month. But it
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
Consumer confidence among upstate New Yorkers continued to lag behind the rest of the state and nation in February, although it rose from January, according to the latest index from the Siena Research Institute (SRI).
Upstate New York’s overall consumer-sentiment index rose 1.6 points to 69.9 in February, compared to the previous month. But it still lagged behind New York state’s 77.3 reading and the metro New York City area’s 82.4. The state’s index was up 2.8 points from January and the New York City area’s rose 4.4 points.
The indexes have a break-even point of 76, at which consumers express equal levels of optimism and pessimism.
The nation’s consumer-sentiment index for the month was 77.6, according to data from the University of Michigan. SRI, located at Siena College near Albany, surveyed 808 New York residents over age 18 to develop its sentiment indexes.
SRI’s overall index combines consumers’ current feelings and thoughts about the future. Upstate New Yorkers feel better about the current environment, with an index of 73.5, but are more pessimistic about the future, with an index of 67.6.
Both readings were higher than January’s, according to SRI.
Given all the recent negative talk about rising gas prices and the automatic federal budget cuts that took effect March 1, the sentiment indexes could have been much worse, says Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director.
“The stock market went up,” Lonnstrom notes. “The other big factor is home prices. There are signs the home market is starting to come back. That’s making people feel better.”
In fact, SRI found in its survey that 4.8 percent of respondents plan to buy a house in the next six months, up from 3.7 percent n February 2012. Even if consumers aren’t planning to buy or sell a home, recovering property values will help people underwater on their mortgages.
Plenty of homeowners continued to make payments during the downturn and avoided foreclosure in the hope that prices would eventually recover, Lonnstrom says.
Democrats and Republicans displayed some of the biggest disparities in sentiment level.
Democrats’ overall sentiment index for the month was 93.8, up eight points from January. Their future index of 95.8 was up 5.6 points and their current index of 90.6 rose 11.8 points.
Republicans on the other hand are feeling much worse about things. Their overall sentiment index was 58.7, up 1.5 points from January. Current sentiment among Republicans fell three points from January to 61.4 while future sentiment rose 4.3 points to 56.9.
Democrats displayed the highest sentiment level of any group survey by SRI in February while Republicans registered the lowest.
With a Democratic president in power, members of the party are hearing plenty of things they want, Lonnstrom says. President Barack Obama’s State of the Union address and inauguration speech likely contributed to the positive feelings among Democrats, he adds.
The gap between the two parties probably contributed some to the gulf between upstate New York and New York City as well, Lonnstrom says. The city is a Democratic bastion.
SRI also polled the state’s consumers on the effects of gas and food prices on their finances.
It found that 68 percent said their grocery bills were having either a very serious or somewhat serious effect on their finances, down from 71 percent in January, while 58 percent said the same about gas prices, up from 54 percent in January.
Half said both gas and food prices were having a serious or somewhat serious effect, up from 47 percent.
Contact Tampone at ktampone@cnybj.com
Vicks: A printing company adapting in the digital age
What if I should fall right through the center of the earth … oh, and come out the other side, where people walk upside down? — Alice in Wonderland YORKVILLE — Anyone operating a printing company today understands how Alice felt. In the past 13 years, over 10,000 establishments have vanished as the industry
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
What if I should fall right through the center of the earth … oh, and come out the other side, where people walk upside down? — Alice in Wonderland
YORKVILLE — Anyone operating a printing company today understands how Alice felt. In the past 13 years, over 10,000 establishments have vanished as the industry shrinks in the wake of the Internet and digitization. The consolidation has been hastened by the Great Recession of 2008 and early 2009, but structural changes have certainly redefined the industry.
No one understands the impact of this upside-down world better than Dwight E. Vicks III. Vicks, who is the president and third-generation owner of Vick’s, Inc., has reinvented his operation, headquartered at 5166 Commercial Drive in Yorkville. The digital revolution has forced him to respond to his publishing customers. “Vicks [Inc.] doesn’t live in the world of denial,” says the company president … The business model for book publishers has changed … [Formerly], 20 percent of their titles produced 80 percent of their sales, which meant that most books sat in inventory or were [ultimately] shredded. The digital age allows publishers to produce only those copies that sell, which eliminates obsolescence, reduces their inventories, and frees up cash.”
In 2003, Vicks made a major investment in digital publishing. The company allocated thousands of square feet of its 200,000-square-foot facility to new, high-speed, digital presses whose output matches the quality of offset printing. The printing operation is complemented by a full-service bindery as well as a fulfillment and distribution center. “We run three shifts in the digital [department] to be responsive to our customers,” says Vicks … They expect us to offer a [turn-key] service where they simply send us instructions and a digital file; we do the rest.”
Doing the rest also means “… having the capability to repurpose content for customers anywhere in the world,” says Vicks. [To accomplish this], we have created a strategic alliance with Absolute Services, Inc. of Towson, Maryland … This gives us the capability of providing editorial services such as content development, template setups, and data conversions … Absolute also owns a production facility in the Philippines to support content customization, editing, layout, and printing.”
Vicks has also struck up an alliance with Caligraving, Ltd., a specialist book printer located in Thetford, UK, 85 miles north of London. The British company has been involved in book publishing since 1956, specializing in the same field as Vicks – music and educational books.
“Caligraving gives us access to the Euro Zone … It also allows us to respond to a publisher who wants 2,000 books shipped in the United States and say 250 to England. Vicks can print and distribute the U.S. copies … Instead of printing 250 books and shipping them to England, Caligraving can handle the [European] order … We simply send them a [digital] file … [On the other hand], if Caligraving receives an order, the process also works in reverse.”
Change is not new at Vicks. Dwight Vicks III remembers his father’s gamble in 1957 when he bought a 29” Miehle press, thus introducing offset printing into a letterpress plant. Dwight E. (Duke) Vicks, Jr. mortgaged the company against the wishes of his father’s advisers. The gamble paid off as offset printing rapidly replaced letterpress. In the 1950s and 1960s, Duke Vicks also had to gamble on a new direction for the company as the old customers, many in the defense business, left the area. He diversified by entering the book-printing business with regular trips to New York City.
Today, Vicks, Inc., formerly Vicks Lithograph & Printing Corp., “… employs 80 and generates annual revenue of around $15 million,” says Dwight Vicks III … “We carry an inventory of paper that exceeds a million pounds … Vicks is a Sub-Chapter S corporation which owns the building.”
In addition to Vicks as president, the executive team includes Leo McCoy as CFO, Frank Driscoll as general manager, Michael O’Donnell as manager in charge of continuous improvement and digital print, and Gary Nelson, marketing analyst. “We run a flat organization, and we’re not big on titles,” quips Vicks. “Some titles I just make up.”
Vicks also relies on local professionals to help steer the business. “Vicks works with NBT for operating cash and for [purchasing] equipment … For legal advice in the area of human resources, we turn to Nick Fiorenza [Ferrara, Fiorenza, Larrison, Barrett, & Reitz, P.C. in DeWitt] and for corporate law we use Peter Rayhill [Martin & Rayhill, P.C. — Utica] … Our accountant is Mike Fitzgerald [from Fitzgerald, DePietro & Wojnas, CPAs, P.C.] in Utica,” says Vicks.
Vicks notes that his business is in a continuous state of change. “I would like to do [long-term] strategic planning,” says the MBA graduate from the Johnson School of Management at Cornell. “Three years would be my goal, but in reality, I plan for only one year because things move so fast. It’s not clear where the industry is going, since the introduction of electronic readers like the Kindle … So far, educational products, particularly in the music industry, have continued [to be produced] in print form, but the pace of change is so dramatic it’s unclear where things are headed … Our strategic challenges also include finding young people as employees … Unfortunately, our industry does not attract them … [And of course], we are always concerned with our major competitors who are the 20 largest book publishers, mostly located in the Midwest … Perhaps our biggest challenge is to find more niche customers.”
“Today, digital and offset book manufacturing still represent more than 85 percent of our revenues with fulfillment at 10 [percent] and content management at less than five [percent] … I think that our future growth will come in the fulfillment and content-management areas,” says Vicks. “Currently, our revenues from exporting are less than 10 percent … I think this is another growth area for us.”
Dwight Vicks III, 50, joined the company in 1991 after working in New York City at the Bank of New York. “I became president of Vicks around 2000,” he says. “My father [Dwight, Jr.] joined the firm in 1957 after graduating from Cornell, serving in the navy, and returning to Cornell for his MBA. … Dwight, Sr. founded the company 1918 when he and his brother bought the internal print shop of a large textile mill.”
After 95 years in business, Vicks, Inc. continues to adapt to change. “We have to listen to our customers and continue to invest in digital technology … We’re not putting our money into iron anymore but into software … We lease our digital presses to keep up with the upgrades and changes … Our sales representatives are no longer sales people but consultants who need to help our customers run their businesses better … We have to be sure our transaction costs are low so we can compete,” says Vicks III.
This is the plan to take the company to the century mark and perhaps to the fourth generation.
Contact Poltenson at npoltenson@cnybj.com
National Water Main Cleaning Co. starts Utica office
UTICA — Sewer overflows enticed a New Jersey company to open a new location in Utica. National Water Main Cleaning Co., of Newark, N.J., will hold a grand opening for its new Utica location on March 13. Its new office is at 928 Broad St. The firm provides sewer-system cleaning, studies, inspections, and repairs. It
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
UTICA — Sewer overflows enticed a New Jersey company to open a new location in Utica.
National Water Main Cleaning Co., of Newark, N.J., will hold a grand opening for its new Utica location on March 13. Its new office is at 928 Broad St.
The firm provides sewer-system cleaning, studies, inspections, and repairs. It started looking for a Utica location in order to work on state-mandated repairs to the Sauquoit Creek sewer line in Oneida County, according to Gary Millington, National Water Main Cleaning’s Utica office superintendent.
“It’s the Sauquoit Creek Basin,” he says. “They’re under a consent order to do the whole basin to stop the overflow. It’s a sanitary line, and when it rains too hard, it overwhelms the system and dumps into the Mohawk River.”
In the three months leading up to the office’s grand opening, National Water Main Cleaning hired seven new employees to work out of Utica, according to Millington. Then it hired an office employee to begin work Feb. 25. Millington was previously the company’s only employee based in the area.
Other employees have been in Utica temporarily to work on projects, Millington adds. But they were typically based in a National Water Main Cleaning Co. location in Canton, Mass.
Millington wants to expand the Utica location in the future. Its easy access to Albany, Syracuse, Rochester, Binghamton, and Ithaca makes it an ideal location to serve other cities, he says.
“It’s a central location,” Millington says. “We definitely have to get more work.”
Within Oneida County, an office in Utica’s Broad Street was attractive because it is near the New York State Thruway, Millington continues. Workers will be able to easily travel to the different locations where they will have to work, he says. He estimates employees will not need to travel for any more than 20 minutes to work on the project.
National Water Main Cleaning is leasing 10,000 square feet for its office. About 1,000 square feet of that is dedicated to office space, with the rest set aside to house equipment. The company is leasing the space from property owner David Mazloom, Millington says.
Renovations were necessary to prepare the new office. Crews installed a new floor drain, paved the building’s parking lot, and added fencing. They also built in the 1,000 square feet of office space.
The building’s landlord handled the renovations, according to Millington. The cost is built into National Water Main Cleaning Co.’s lease, he adds.
Millington says he does not have access to sales totals or revenue projections. National Water Main Cleaning Executive Vice President Jim Lounsbery did not respond to requests for comment.
The Sauquoit Creek sewer repairs are estimated to cost over $180 million. The new National Water Main Cleaning Co. office won’t handle all of that work — it has to bid separately on different parts of the job over several years, according to Millington.
He stresses that having an office in Utica is a big move for the New Jersey company.
“We really didn’t have an office here,” he says. “We were parking at the town yards. And then we were renting space at a garage.”
National Water Main Cleaning Co. is a part of Chicago–based Carylon Corp., an environmental-maintenance company with subsidiaries in 18 states.
Contact Seltzer at rseltzer@cnybj.com
Empire Recycling: From rags to riches
UTICA — It was 1916. Woodrow Wilson was in the White House, the Rose Bowl held its first football game, Gen. “Blackjack” Pershing was chasing Pancho Villa in Mexico with 15,000 American troops, and Albert Einstein presented his Theory of Relativity. This was also the year that Robert, Morton, and Louis Kowalsky opened a small
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
UTICA — It was 1916. Woodrow Wilson was in the White House, the Rose Bowl held its first football game, Gen. “Blackjack” Pershing was chasing Pancho Villa in Mexico with 15,000 American troops, and Albert Einstein presented his Theory of Relativity.
This was also the year that Robert, Morton, and Louis Kowalsky opened a small business in Utica recycling rags, metal, and paper.
With the fourth generation now running the business, Empire Recycling, headquartered in an 80,000-square-foot complex on 12 acres in Utica, is no longer a modest endeavor. “Empire Recycling, which is the holding company for 10 operating businesses and four separate corporations, processes 5 million pounds of non-ferrous metals, 7,000 tons of ferrous metal, and 2,000 tons of paper every month,” says Edward L. Kowalsky, the company’s executive vice president. He is a 50/50 stockholder with his brother Steven R., who is company president.
In 97 years, Empire Recycling has grown from a single site to six, metal-division locations in New York (Utica, Albany, Waterloo, Watertown, Syracuse, and Shortsville, near Rochester). The paper division has three locations — Utica, Syracuse, and Binghamton — handling both confidential documents and non-confidential paper. Along the way, Empire Recycling also acquired a trucking company — Lightning Fast Freight, Inc. — in 2011.
Scrap material is collected from individuals, businesses, scrap dealers, demolition contractors, and others. The materials are weighed, graded, sorted, cut, and then shredded, baled, or logged. The metal end-products are shipped to its customers for re-melting and processing into mostly sheet metal and can stock, and the paper is typically recycled to paper mills as pulp.
“Empire recycling today has 200 employees and [generates] more than $100 million in revenue,” Edward Kowalsky adds. “Our sites include about 40 acres of land and 400,000 square feet of [building] space, mostly owned by the company … We have 60 trucks, 300 tractors, and 500 roll-offs, in sizes ranging from 30 to 50 cubic yards … We export about 20 percent of our volume, shipping through the Port of Newark.”
Empire recycling recently expanded its geographic reach. “Empire has a new state-of-the-art, indoor scrap facility in Watertown,” says Steven Kowalsky. “It’s probably the largest of its kind in New York State … The facility opened last October. We have 12 employees handling both ferrous and non-ferrous metals.”
“The site contains 6.5 acres, and the 75,000-square-foot building occupies about two acres,” adds Edward Kowalsky. “We currently use 50,000 feet with 20,000 feet left over for expansion. The building also has 5,000 [square] feet of attached office space on two floors, which we will probably lease out … The building was originally the 90-year-old Black-Clawson warehouse [located at 511 Pearl St.].”
“We spent four years negotiating with the Railstar Corporation, the former owner,” Kowalsky continues. “Once the deal closed, we simultaneously closed on a contract to buy Perkins Scrap Metals [129 Factory Square in Watertown], a customer of ours for the past 20 years who sold us scrap to be shredded and distributed … The acquisition of the land and building cost us $500,000. We then invested $1 million in renovating the building and site and another $500,000 in new equipment, bringing the total investment to $2 million. The new company is called Empire Watertown.”
“We have been interested in the North Country for a long time. By opening an operation in Watertown, we cut our [hauling] time by an hour-and-a-half and make it easier for our customers … Watertown also gives us better access to our customers in Canada and lets us expand north to serve customers in St. Lawrence County. The volume of recycled materials coming from contractors at Ft. Drum, of course, is an added benefit,” says Kowalsky.
Edward Kowalsky says the company is not currently focused on another expansion, but it is considering moving into a new line — electronics recycling.
Steven Kowalsky, 60, and his brother Edward, 53, represent the fourth generation of this “rags to riches” story. Each has two children, none of whom is yet working in the business. Steven Kowalsky does have a son-in-law who works at Empire Recycling.
Contact Poltenson at npoltenson@cnybj.com
Tim Birnie: Steering the company to success through diversification
ROME — “All you men want to do is talk about buses,” Timothy (Tim) Claude Birnie remembers his mother saying. Birnie is the president of Birnie Bus Service, Inc. with headquarters located at 248 Otis St. at the Griffiss Business & Technology Park in Rome. “My father, Martin K. Birnie, joined his brother-in-law [Martin J.
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
ROME — “All you men want to do is talk about buses,” Timothy (Tim) Claude Birnie remembers his mother saying. Birnie is the president of Birnie Bus Service, Inc. with headquarters located at 248 Otis St. at the Griffiss Business & Technology Park in Rome.
“My father, Martin K. Birnie, joined his brother-in-law [Martin J. Nunn] in 1947 to run a small transportation company that had one motor coach, two school buses, and a station wagon. He bought the bus [operation] in 1953 and incorporated in 1960 as Birnie Bus Service … My mother was right; all the family talked about were buses,” says the current president.
After 10 years of teaching public school, Tim Birnie joined the bus company in 1979. At that point, the fleet had 55 buses, mostly transporting children to school. “When I joined the company, we only had one contract with the Rome School District. Over the past 33 years, our fleet has grown to more than 1,200 vehicles,” Birnie says. “School buses now represent [only] 60 percent of our revenues. We also transport handicapped adults, which is another 20 percent. The transit and motor coach divisions each generate 10 percent.”
The transit operation includes non-emergency transportation for Medicaid recipients in five counties: Oneida, Herkimer, Lewis, Madison, and Otsego. Birnie Bus also runs a shuttle from Syracuse to Turning Stone Resort Casino and has operated a Little Falls to Syracuse route for 20 years. Diversification includes campus shuttles for Colgate University and Hamilton College and a sub-division (Quality Coach Lines, Inc. in Syracuse) that serves the athletic programs at Colgate, Hamilton, Utica College, Herkimer Community College, Mohawk Valley Community College, Syracuse University, Le Moyne College, the Syracuse Crunch professional hockey team, and the Syracuse Chiefs pro baseball team.
Birnie Bus is also certified by the U.S. Department of Defense to transport military personnel, and the company is affiliated with the Trailways Transportation System, a national carrier comprised of about 80 independent bus companies.
“People don’t realize that we are the 12th largest, privately owned bus company in the country,” Birnie notes. “We have 18 locations in New York and with the recent contract for Jacksonville [Florida], Birnie is probably now the 10th largest company, … transporting 100,000 passengers every day. The company has 1,482 employees [of whom] two-thirds are part-time.” Birnie declined to disclose the company’s annual revenue, but confirmed it is well north of $50 million.
“The Rome site contains 22 acres, so there is plenty of room for expansion. The headquarters building, which is owned by the company, is about 60,000 square feet and was a former vehicle-maintenance shop at Griffiss [Air Force Base].”
Birnie Bus’ growth has come through diversification. While expanding the traditional school-bus service, Bernie Bus also was granted rights in 1982 by the Interstate Commerce Commission to transport groups and tours anywhere in the United States. In 1988, the company started a handicapped-transportation program for the Rome Developmental Center, under the auspices of the New York State Office for People with Developmental Disabilities, and in 2008, Birnie Bus announced its affiliation with Trailways. “Our growth over the years has been 50 percent organic and 50 percent through acquisitions,” says Birnie. “Today, we now have such a large repair, parts, and paint facility that we fix and paint buses as well as sell parts not just for ourselves but also for school districts [that own their own buses] and for other bus companies.”
The diversification has also created a complicated table of organization and myriad corporations. Birnie Bus Service, which is structured as a C-corporation, has a number of sister corporations including Birnie Bus Tours, Inc.; T&K Real Estate; Birnie Transport Service, Inc. in Corning; Reliable Bus Parts, Inc.; and Arthur F. Mulligan, Inc., near Kingston.
Birnie Bus has grown so large that its competition to transport school and handicapped passengers is now large national and international companies. Birnie Bus competes for contracts with firms such as First Student, Inc., which has 54,000 buses operating in 38 states and nine Canadian provinces; the National Express Corporation, which operates more than 17,000 school buses in 30 states; and Student Transportation Inc. (NASDAQ: STB), with more than 9,000 vehicles serving more than 200 school districts.
Birnie says “… my success in growing the company has come from hiring employees who are looking for a career, not a job.” Leading the company is the executive team, which in addition to Birnie as the company president, includes Terry Inkawhich as the vice president of finance, Eric Taylor as the vice president for operations, and Paul D’Aiuto and Bonnie Bates as regional managers.
At age 65, Tim Birnie is not slowing down. “I have a passion for this business,” says Birnie, who maintains his license to drive a bus. “I am very optimistic about the future growth of the company … 60 percent of the [school] districts still own their buses … As school budgets grow tighter, more are realizing they can save money by outsourcing their transportation and still deliver quality service … I think more school districts are looking favorably at privatization so they can focus on what they do best — educating the children.” While not revealing any details, Birnie is positioning the company to ride what he sees as a growing trend.
To accomplish his vision of continued growth, Birnie is focusing on the question of succession. “I have twin daughters and a son who have grown up listening to my passion for the company. Lauren is working for JPMorgan [Chase] and her sister Kait is currently working in the fashion industry. Both are getting outside experience, which I think is important. The girls have worked summers and while they were in college at the company. My son is still a teenager in high school,” Birnie says.
Birnie Bus works with local vendors for key services. “Our lead bank to finance operations, buy buses, and fund real estate in New York is NBT. When we did the Jacksonville contract, which was a $20 million project, we worked with Wells Fargo and SunTrust. For our legal work, we use Bond, Schoeneck & King for labor issues and the Matt Law Firm, PLLC in Utica, which is of counsel to Hiscock & Barclay. For accounting, we work with Mike Fitzgerald [Fitzgerald, DePietro & Wojnas CPAs, P.C.],” says the company president.
“Birnie Bus is also active in the local community. The company has been a sponsor of the Utica Boilermaker Road Race, Special Olympics New York, the Heart Run & Walk, the Kennedy Arena, Stuff the Bus, Rome Hospital Tree of Lights Festival, and the Rome Clean and Green Initiative, to name a few,” says Birnie … We’re part of this community, and it’s important to be civic-minded.”
“I was born into this business,” avers Birnie. “I have long had a vision to create a company where there is mutual respect, … a company with just compensation, benefits, and work atmosphere so employees enjoy coming to work … We [need] to treat our customers with respect, good service, and [fair] pricing … We can grow our business within our core concept of safe, reliable transportation, create a stable environment while still taking advantage of opportunities, and creating diversification around [our] core business.”
Birnie thinks back nostalgically to his mother’s comment about the Birnie men only talking about buses. “My children hear the same thing growing up [I heard],” says Birnie. He hopes to hand over to the third generation of Birnies a bus company that is growing through diversification. Judging by his current vehicle fleet, which is more than 20 times larger than when he started at Birnie Bus, and his passion for the business, Birnie Bus will continue to grow and compete on the national scene.
Birnie keeps an autographed photo of Jackie Gleason in his office dressed as Ralph Kramden, the 1950s TV character who drove a bus. Kramden was fond of saying “And away we go.” Birnie has adopted the phrase as he steers the company in new directions.
Contact Poltenson at npoltenson@cnybj.com
Rome Memorial Hospital launches educational TV system
ROME — Rome Memorial Hospital has introduced a new television system to provide patient and staff education on the hospital’s 1500 N. James St. campus. The Rome Hospital Foundation, the hospital’s fund-raising arm, secured a $50,000 grant from M&T Bank for the purchase of a nine-channel medical media-on-demand system. It delivers patient education on topics
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
ROME — Rome Memorial Hospital has introduced a new television system to provide patient and staff education on the hospital’s 1500 N. James St. campus.
The Rome Hospital Foundation, the hospital’s fund-raising arm, secured a $50,000 grant from M&T Bank for the purchase of a nine-channel medical media-on-demand system. It delivers patient education on topics such as relaxation, diabetes, lung disease, surgeries, pregnancy and newborn care, lifestyle, and general health advice.
The programming, which will be selected by the hospital’s education department, will be broadcast through the existing local cable system in patient rooms and staff areas as closed-circuit channels.
“We are grateful to M&T Bank for their generosity and ongoing support of Rome Memorial Hospital,” Gregory Mattacola, board president of the Rome Hospital Foundation, said in a news release. “The new television system will help educate our patients and their families and enable them to learn more about their diagnosis while they recuperate in the hospital.”
With the help of this education program, patients are able to better understand their diagnosis, treatment, and be prepared to care for themselves properly at home, according to Gale Barone, director of education and employee health at Rome Memorial Hospital.
“Studies done on hospitalized patients show that only 50 to 60 percent of the information provided to them by health-care professionals is retained,” Barone said in the release. “Our patient education television system reinforces key information in a format that is easy to understand. This will improve patient outcomes and satisfaction and decrease re-admissions to the hospital.”
In addition to the patient education program, the hospital will also initiate a staff education channel through this television system.
“New medications, treatments, and technologies are developed every day,” Barone said. “Health-care providers need to constantly update their knowledge. The staff education channel is one more tool to help educate caregivers and employees, many of whom work various shifts.”
Rome Memorial Hospital has nearly 1,000 full and part-time employees, 181 physicians, 130 acute-care beds, 80 long-term care beds, and 6,000 yearly patient visits, according to its website. The hospital’s total operating budget in 2012 was $93 million.
Contact The Business Journal at news@cnybj.com
Strategic Financial eyes $1 billion in assets
UTICA — “Our goal is to hit $1 billion in assets within two years,” says Alan R. Leist, III, the senior portfolio manager at Strategic Financial Services, Inc. The firm is headquartered at 114 Business Park Drive in Utica, with additional offices in DeWitt and West Palm Beach, Fla. Alan R. Leist, Jr., company CEO
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
UTICA — “Our goal is to hit $1 billion in assets within two years,” says Alan R. Leist, III, the senior portfolio manager at Strategic Financial Services, Inc. The firm is headquartered at 114 Business Park Drive in Utica, with additional offices in DeWitt and West Palm Beach, Fla.
Alan R. Leist, Jr., company CEO and founder, says, “I started in 1979 in wealth management and estate planning. I ran out of money in three months … and went to KeyBank for a $25,000 loan … It took three to four years before [the business] blossomed.” His son, Alan R. Leist, III, notes that, “the firm [currently] manages and advises on assets of over $850 million.”
From its modest start, Strategic Financial Services expanded in 1988 into investment management, when Judy Sweet, now the firm’s president, came onboard to co-found Strategic Investment Advisors, the firm’s registered investment advisor. Around 2000, Strategic Financial embraced company-sponsored retirement plans. “Today, we have 27 full-time employees of whom 10 are focused on research, one is in marketing/sales, and the rest service and support our clients,” says Leist, III. “Our [annual] revenue is around $5 million.” Leist, Jr. notes that “… the company owns the 9,000-square-foot building in Utica and leases the 960-square-foot office in DeWitt and the 450-square-foot office in Florida.”
Strategic Financial caters to high-net-worth clients. “Our clients [typically] have $1 million to $20 million in liquid assets and a net worth of $5 million to $50 million … Our institutions also have endowments of $1 million to $20 million,” says Leist, III. “This is our sweet spot, our core competency,” adds his father. “On the institutional side, we have 32 relationships … [of which] 31 are in Central New York … Many of our individual investors also own businesses, and we handle their company retirement plans.”
Contributing to the firm’s growth is the executive committee, which includes eight employees. In addition to Leist, Jr., Sweet, and Leist, III, the committee includes Jeremy Stewart, managing director, information and data systems; Nancy Meininger, managing director, finance and operations; Iris Buczkowski, managing director of wealth management; David Lemire, managing director, senior market strategist; and Laura Powers, director, retirement-plan services.
Strategic Financial has appeared regularly in Barron’s Top 100 Financial Advisors, based on assets managed, revenue produced, and quality of practice. “We’re proud of our being recognized by Barron’s, … [especially] considering the number of competitors, which range from international bankers and pure investment managers to other independent advisors,” says the CEO.
“What sets us apart is our value proposition,” adds Sweet. “We’re not selling a product … We’re giving investment advice based on a thorough understanding of our clients’ needs and goals. That means taking the time not only to gain this knowledge but [also] to establish a comfort level and earn their trust … Our clients have access to key executive talent … When you talk to us, you talk to a team of money managers … focused directly on your investment strategy … We focus on quality to protect assets in the short-run and [compound] returns in the long-term … Process, people, and persistence drive investment success.”
Michael Leist, who focuses on marketing and client relations, says to add “… communications to the mix of what sets Strategic Financial apart from the competitors. We have created a communications platform which includes regular publications in print and online. We are looking at adding videos and considering information seminars … We also advise our clients what’s new at Strategic Financial so they are aware of any changes.” Leist, Jr. also points out that “… two members of the staff focus on scheduling appointments between the relationship managers and the clients to [ensure] regular meetings … If a client has a question, we provide the answer by the end of the day or we call to say we’ll have the answer by tomorrow.”
“Education of our staff also sets us apart,” continues Leist, Jr. “[Just] look at the impressive credentials of our employees.” The CEO is referring to an alphabet soup of initials attached to the firm’s employees. “[For example], it is unusual for a firm our size to have so many CFAs,” he avers.
Leist, Jr., Sweet, and Leist, III are stockholders in the company. Leist, Jr. held management positions at Elder Pharmaceuticals, Xerox, and Chicago Pneumatic Tool Co. before founding the company in 1979. Prior to joining Strategic Financial, Sweet held investment positions at Marine Midland Bank and the Bank of New York, where she was responsible for equity and fixed-income management of trusts, estates, and investment-management accounts. Leist, III led the technology-trading team at Merrill Lynch before moving to Fulcrum Global Partners, LLC to run the trading operation. He joined Strategic Financial in 2005.
“Our firm is committed to the community … We are proud to sponsor over 65 different local organizations, such as St. Elizabeth’s Foundation, United Way, The Community Foundation, Utica Public Library, and Leave a Legacy,” says the company’s CEO. “We give six figures [annually] back to the community, and we try to grow it each year … Our employees also sit on 19 or 20 boards of not-for profit organizations.” Strategic Financial also works with local vendors. It has maintained a 34-year relationship with KeyBank for financing and relies on Fitzgerald, DePietro, & Wojnas CPAs, P.C. for its accounting work.
Strategic Financial is committed to growing the business. “That’s the reason we brought Mike [Leist] in, to focus on business development,” says Leist, Jr. “We have a good share of the Utica marketplace; we need to be more aggressive in Syracuse now that we have opened an office … Longer term, we need to [develop] Albany… Syracuse and Albany [are the ends] of the barbell … To develop the business, we also need to concentrate on succession, on continuity in the company … We have to retain the institutional knowledge while attracting young people.” Leist, Jr. is 66; Sweet is 52; Leist, III is 40; and Michael Leist is 32.
Leist, Jr. muses that he started the business “… because I was doing too much traveling. I moved my son (Alan, III) to three different schools in three years. I needed to feed my family … Because I grew up in Syracuse, I figured Utica (residents) would consider me an expert since I came from 50 miles away,” the founder says jokingly. Leist, Jr. and his wife Connie of 43 years, live in New Hartford near their two sons who returned to work in the family business. Their daughter, Libby Leist, works as a senior producer for the “Today Show” in New York City.
Contact Poltenson at npoltenson@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.