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Commerce Chenango names Golden Artist Colors Business of the Year
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Maffei releases jobs plan to mark 100 days in office
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SYRACUSE — Frank Zaccanelli, who had been serving as CEO of the Hofmann Sausage Company, “has decided to resign from his duties,” according to a
Air Force seeks industry input on building lease at Rome Lab
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ICS grows by serving as clients’ “virtual CIO”
ENDICOTT — Penton Publications recently named Endicott–based ICS Solutions Group (ICS) one of the top-500, managed-service providers in the world. The award is granted to companies that provide software and support allowing for off-site and remote management of their clients’ assets. The award is just the latest accolade for ICS, which was established in 1986
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ENDICOTT — Penton Publications recently named Endicott–based ICS Solutions Group (ICS) one of the top-500, managed-service providers in the world. The award is granted to companies that provide software and support allowing for off-site and remote management of their clients’ assets.
The award is just the latest accolade for ICS, which was established in 1986 by George Schwarztrauber to repair computer hardware. He sold the company in 2005 to its current owners, Kevin Blake and Travis A. Hayes, who had joined the firm in 1996 and 1999 respectively.
“When Kevin and I began at ICS, the company had a break-fix model … When your PC [malfunctioned], you called us to repair it. Today, we have a proactive model, not a reactive one,” says Hayes, the company vice president, chief technology officer, and COO.
Blake, who is president of ICS, focuses on business development and administration, and Hayes, whose focus is IT delivery, have ramped up company revenue to a current sales level between $6 million and $7 million annually, a figure estimated by The Business Journal.
“We now have 46 employees, based on a seven-year growth rate that exceeds 30 percent compounded,” says Hayes. “Thirty-six are employed here in Endicott and another 10 at our Syracuse location [2518 Erie Blvd. E. in Syracuse].”
ICS is an owner, along with two silent partners, of the 40,000-square-foot Endicott location, which is called Square Deal Place. The real-estate company is called BiLaw, LLC. “We occupy 6,500 square feet in the building … Kevin and I own the 4,500-square-foot building in Syracuse through a company [we formed] called ICS Realty, LLC,” Hayes says.
Hayes and Blake are the two corporate stockholders with Hayes holding 14 percent of the shares and Blake 86 percent.
The proactive model Hayes describes still has IT as the core business. “Today, we help our customers navigate through every phase of technology,” says Hayes. “They think of us as a virtual CIO (chief information officer) offering technology consulting, help-desk assistance, and [lifecycle] management of their hardware and software … We do this on a fee basis, which allows our customers to budget more accurately and provides ICS with a steady cash flow … In addition to our managed services, ICS offers repair services for printers and copiers, sells refurbished copiers, and has a toner [division] with toner on demand.”
“ICS is also in the cloud,” adds Hayes. “We work with Office 365 (a Microsoft program), which provides affordability and portability … Our customers can access their workplace from anywhere and with any device … That means their data is always on … We also provide emergency response to get our customers back on track, … and we specialize in installing video cameras for those who need a video wall … In addition, we sell and support Cisco [United Communications] to integrate our customers’ phone systems with their computer networks … We even do our own cabling.”
ICS, headquartered at 111 Grant Ave. in Endicott, has retained its focus on small and mid-size enterprises. “Our sweet spot is businesses with 5 to 25 users in the network,” says Hayes. “This is our meat and potatoes, even though we have some customers with hundreds of users that require us to be onsite daily … We specialize in certain industries, such as dental offices and convenience stores, but we also serve car dealerships, doctors’ offices, law offices, accounting firms, insurance agencies, and manufacturers … Geographically, we have extended our [coverage] since acquiring MicroTech in Syracuse in 2010. We now reach from Oswego County to Bradford, Susquehanna, and Wayne [counties] in Northern Pennsylvania and from Otsego [county] to Monroe [county].”
“One thing that has helped us stay ahead of changes is our affiliation with HTG (Heartland Technology Group),” says Hayes. HTG is an organization of technology-industry resellers that collaborate with their peers on best practices. Peer groups include 10 to 12 IT companies of similar size, number of employees, similar lines of service and ownership structure, and located in non-competitive markets. “We meet quarterly and share everything. HTG is a global group that benchmarks technology and looks at trends … It is based on the power of peers,” avers Hayes.
“We need to set ourselves apart from the competition,” says Hayes. “In Syracuse, we find ourselves competing with companies like Usherwood and J.B. Kane and in Binghamton with Red Barn … Our strategy is to be a one-stop shop and to emphasize service … ICS now has a help desk manned every day from 8 a.m. to 5 p.m. There is no auto-attendant; if the three people on the help desk are tied up with customers, [subsequent] calls go to another employee … If the employees monitoring the help desk don’t know the answer to the customer’s question, they find someone who has the answer.”
“We also need to separate ourselves by training our techs to be business consultants,” continues Hayes. “It’s not enough to fix a problem; our reps have to help our customers grow … It’s a challenge to take technical people who are often introverted and focus them on understanding the customer’s business … This is how to build a long-term relationship with our customers.”
“We also need to function as one, big, [integrated] team,” says Hayes. Our response to a customer has to be seamless … If the Syracuse techs are tied up, we need to dispatch one from Endicott … Our customers depend on us to be connected 24/7,” concludes Hayes.
ICS’ meteoric rise has been helped by local professionals. “We rely on M&T Bank for all our banking needs’” says Hayes. “For our legal work, we use the law office of John G. Dowd of Binghamton, and for our accounting, we turn to Salvatore R. Peretore, CPA, located in Endicott.
When asked about future plans, Hayes says ICS is always looking for opportunities that are profitable. “We have no interest in growing just to grow,” says Hayes … We think Syracuse has real potential [as well as] other areas like Utica, Watertown, and Elmira … There is no reason we shouldn’t double [in size] in the next five years both through organic growth and M&A (mergers and acquisitions).”
Blake, 39, and Hayes, 38, met as undergraduates at SUNY Oswego. Their friendship has blossomed into a business partnership that has ICS Solutions Group on the fast track to continue growing at 30 percent.
Contact Poltenson at npoltenson@cnybj.com
Five Star Urgent Care expanding to Cicero in May
CICERO — Five Star Urgent Care Medical, a nascent, growing upstate New York emergency medical-service provider, plans to expand to Cicero in May. This comes only one month after the company added its third location in Ithaca on March 4. Its first two sites are Jamestown and Big Flats. “We did some research and found
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CICERO — Five Star Urgent Care Medical, a nascent, growing upstate New York emergency medical-service provider, plans to expand to Cicero in May.
This comes only one month after the company added its third location in Ithaca on March 4. Its first two sites are Jamestown and Big Flats.
“We did some research and found that there is a growing population in that area,” Dr. John Radford, M.D., co-owner and founder of the Five Star Urgent Care, founded in January 2012, says about Cicero. “We believe our urgent care could be a valuable service to the community.”
Cicero had a population of 31,632 in 2010, according to the latest U.S. Census data, up 13 percent from 27,982 in 2000.
The Cicero branch of Five Star Urgent Care, located at 8003 Brewerton Rd. (Route 11), will open on May 15. The medical practice will hire 10 employees, including three physicians. Five Star Urgent Care leased the 3,000-square-foot space for a 15-year term. Radford declined to disclose the financial terms of the lease. But, he says the startup costs to open up a new location, including equipping it, total about $500,000.
The Cicero Five Star Urgent Care will be equipped with EKG and X-ray machines, according to Radford. It will also be able to perform minor procedures such as incision, drainage, and splinting on site.
Company background
Five Star Urgent Care provides walk-in access for treatment of acute illnesses and injuries. Its other three offices include a 4,600-square-foot location at 830 County Road #64 in Big Flats, a 3,200-square-foot center at 15 S. Main Street, Jamestown, and a 3,400-square-foot branch at 740 South Meadow St. in Ithaca. It leases all four offices.
Five Star Urgent Care now has about 50 employees, including four physicians, working across its current three locations.
Radford and another partner, whom he declined to name, co-own the company.
Radford, 42, an M.D. specializing in emergency medicine, graduated from the SUNY Buffalo School of Medicine and Biomedical Sciences in 1997. Before founding Five Star Urgent Care, Radford spent four years working for the Amherst–based health-care-management organization The Exigence Group and seven years for Orchard Park–based emergency medical-service provider FDR Medical Service, P.C.
Radford declined to disclose Five Star Urgent Care’s annual revenue in 2012.
In discussing the possible growth trajectory for the Cicero location, he explains that an urgent-care center typically starts by accepting 5-10 patients per day in the first few months. Radford’s goal is to grow to 40-50 customers a day in the next 18 to two years at the new location.
The mission
Five Star Urgent Care says it offers affordable urgent care for an array of non-emergent medical needs ranging from diarrhea and allergies to abrasions and broken bones. Every Five Star center is fully equipped to perform electrocardiogram, electrolyte testing, STD testing, intravenous therapy, pregnancy tests, rapid strep, and X-rays.
The Elmira and Jamestown branches of Five Star Urgent Care both received the Certified Urgent Care Center designation, a certification awarded by the Urgent Care Association of America (UCAOA) to organizations meeting certain facility and medical staff criteria. Five Star is the only certified urgent–care provider in the Great Corning, Elmira, and Jamestown areas, according to Radford.
In addition to walk-in medical services, Five Star offers occupational health-care services. It helps company customers design physical and drug-screen protocols and perform examinations, including blood testing, pulmonary function testing, audiometry, EKG with interpretation, and chest X-rays.
The average waiting time after registration at Five Urgent Care is about 15 minutes, says Radford, and the average treating time is about 40 minutes.
For uninsured patients, the cost for examination and basic treatment is around $110. If advanced procedures such as stitches or X-rays are needed, the cost is around $175, Radford explains. For insured patients, the emergency co-pay ranges from $15 to $50, depending on the insurance company or health plan.
Five Star Urgent Care accepts private insurance from Aetna, ELMCO, Excellus BlueCross BlueShield, POMCO, RMSCO, Today’s Options, and United Health Care, among other firms, according to its website. It also accepts Medicare and managed Medicare plans of the private insurers it works with, as well as some managed-care Medicaid plans.
If patients need only a prescription instead of medical services, Radford adds, the company can directly send electronic prescription copies to the patient’s local pharmacy.
Five Star Urgent Care offers flat screen TV and computers in its waiting rooms Radford noted. “We really try to give people a pleasurable experience if they have to wait at all,” Radford said.
Burgeoning industry
Five Star Urgent Care’s rapid expansion reflects the growth of urgent-care centers as an alternative to more expensive hospital emergency rooms.
In a study published on Feb. 27, a group of researchers, led by the department of emergency medicine at Stanford University, found that the median charge for outpatient services in the emergency room reached $1,233. In comparison, most urgent-care centers charge about a few hundred dollars.
As for services, urgent-care centers can meet most non-emergent medical needs, except serious medical conditions or mental illness that requires immediate treatment. Such conditions include heart attack, stroke, poisoning, high fever, and seizure, according to information provided on the website of Five Star Urgent Care. In those conditions, the patients should directly dial 911.
The U.S. has more than 8,700 urgent-care centers, according to the website of UCAOA, and the number is growing by 300 a year. UCAOA estimates that about half of those centers can meet the criteria of a certified urgent-care center. There are now 71 certified urgent-care centers in the New York state.
Contact The Business Journal at news@cnybj.com
Quarterly consumer sentiment falls in all New York regions in Q1
Overall consumer sentiment declined in all major regions of New York state in the first quarter of 2013, according to results of the latest quarterly survey of nine metropolitan statistical areas (MSAs) of the state issued by the Siena (College) Research Institute (SRI) on April 10. In the first three months of the year, consumer
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Overall consumer sentiment declined in all major regions of New York state in the first quarter of 2013, according to results of the latest quarterly survey of nine metropolitan statistical areas (MSAs) of the state issued by the Siena (College) Research Institute (SRI) on April 10.
In the first three months of the year, consumer sentiment fell 7.6 points to 60.6 in the Utica–Rome region, dipped 2.6 points to 71.6 in the Syracuse area, and declined 6.2 points to 66.4 in the Binghamton region, compared to the fourth quarter of 2012.
The Long Island region recorded the smallest decrease at a single point, and the Rochester MSA’s sentiment fell 7.7 points, representing the largest confidence decline during the quarter, according to the SRI data.
At 60.6, the Utica–Rome region had the lowest overall consumer sentiment of the nine regions, and the New York City area had the highest confidence at 82.4. Current sentiment decreased in six regions, and future sentiment fell in all MSAs.
An MSA is a core, urbanized area of 50,000 or more people plus adjacent counties with strong social or economic ties, as measured by commuting patterns, according to SRI.
Even though the first quarter included new trading highs in the stock market and an improved housing market nationwide, it also included “fairly gloomy economic news,” says Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director.
“The jobs reports are not robust, the numbers are still not there; one out of five people is still worried about losing their job, so that’s hanging over everybody’s head,” Lonnstrom says.
He also noted the budget battle in Washington and the federal sequester budget cuts are still making headlines, which doesn’t help to inspire consumer confidence, he adds.
“The economists are not predicting great growth for this year, or even in the next year, and people are aware of that,” Lonnstrom says.
Consumers are also keeping their eyes on gas and food prices, and even though Wall Street and the housing market performed well in the first quarter, Lonnstrom believes it wasn’t enough to overcome the negative news.
He adds that it’s not surprising that future consumer sentiment slipped in all nine MSAs across New York.
“People are just looking forward and not seeing a lot of good news out there that they think things are going to get better,” Lonnstrom says.
The intent of the consumer-sentiment index is to measure people’s willingness to spend, as opposed to their ability to spend, SRI says. This data reports consumer confidence for the first quarter by MSA and should not be confused with SRI’s monthly New York index.
While consumer sentiment is reported as an index number, the buying-plans portion of the survey reflects the percentage of respondents who plan specific expenditures in the next six months.
Of the 45 buying plans possible across the nine MSAs, 12 increased in the first quarter and 32 decreased, according to SRI.
In the Syracuse MSA, buying plans were up 3.3 points to 18.3 percent for major home improvements, increased 1 point to 11.2 for cars and trucks, and edged up 0.2 points to 2.4 percent for homes. Buying plans declined 1.9 points to 10.2 percent for computers and fell 1.5 points to 15.4 percent for furniture.
In the Utica–Rome MSA, buying plans declined 5.6 points to 13.9 percent for major home improvements, fell 4.6 points to 10 percent for furniture, decreased 4.6 points to 8.3 percent for computers, declined 3.6 points to 10 percent for cars and trucks, and fell 2.1 points to 1.5 percent for homes.
In the Binghamton MSA, buying plans fell 7.7 points 6.6 percent for cars and trucks, declined 5 points to 11.7 percent for furniture, decreased 4.5 points to 14.4 percent for major home improvements, fell 2.6 points to 8.8 percent for computers, and declined 1.2 points to 2 percent for homes.
SRI conducted the quarterly consumer-sentiment survey by random telephone calls to more than 400 respondents over the age of 18 in all of the MSAs, except for New York City and Long Island, which are based on an average of SRI’s monthly consumer-sentiment surveys.
Contact Reinhardt at ereinhardt@cnybj.com
Online shopping app Rosie wins $200K Startup Labs Syracuse prize
SYRACUSE — CenterState CEO on April 8 awarded the $200,000 top prize in its Startup Labs Syracuse business competition to Rosie Applications, Inc., an Ithaca–based maker of an online-shopping application. Rosie Applications receives a cash prize of $150,000 and $50,000 in marketing and branding services from Syracuse–based advertising agency Eric Mower + Associates. The Ithaca
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SYRACUSE — CenterState CEO on April 8 awarded the $200,000 top prize in its Startup Labs Syracuse business competition to Rosie Applications, Inc., an Ithaca–based maker of an online-shopping application.
Rosie Applications receives a cash prize of $150,000 and $50,000 in marketing and branding services from Syracuse–based advertising agency Eric Mower + Associates.
The Ithaca company says that its Rosie shopping tool will save customers time, money, and stress by predicting household products they need, before they run out, and ordering them from local grocers and online retailers. Customers purchase online through rosieapp.com or through Rosie’s iPhone app and their orders are sent to their favorite local retailers for in-store pickup, Rosie Applications says on its website.
Winning the grand prize means Rosie Applications will have the ability to grow more quickly, hire two full-time employees, and scale nationally by 2014, Nick Nickitas, founder and CEO of the company, said in his remarks while accepting the Startup Labs Syracuse contest victory during CenterState CEO’s annual luncheon meeting.
Rosie’s patent-pending prediction capability is powered by a proprietary recommendation engine based on machine-learning concepts, the company says. The business is an eLab company, part of Cornell University’s incubator, which aims to accelerate the development of startup firms.
Rosie Applications beat out four other businesses — Full Circle Feed of Syracuse; SnagMobile, LLC of Delmar; Pretty Padded Room of New York City; and Yorango, Inc. of Ithaca — to score the win in the Startup Labs competition.
A panel of judges selected the winner following the competition’s demo day on Feb. 7 and after an “intensive” 22-day program where the five finalists worked daily with more than 50 mentors and advisors at The Tech Garden, according to CenterState CEO.
CenterState CEO, the region’s major economic-development organization, held its annual meeting at the Nicholas J. Pirro Convention Center at Oncenter. More than 1,000 people attended.
Also at the meeting, a prominent upstate New York business executive discussed how Central New York business and community leaders could adapt to meet new challenges facing their companies.
Kevin Warren, president of U.S. client operations at Xerox Corp., gave the keynote address.
“The key to sustainability and growth is being open to reinvention and the opportunities that come with it,” Warren said. “Regardless of industry, businesses must be skilled at changing. There is tremendous opportunity with change, but most people associate change with loss because it’s a disruption. No one can avoid disruption, but we can choose how to drive change.”
CenterState CEO also honored four companies with its annual “Business of the Year” award, including Tops Friendly Markets in the category of firms with more than 50 employees. It named Terakeet Corp. the winner among the finalists with fewer than 50 employees.
Syracuse University earned the award for community involvement. And, the Onondaga Historical Society won in the nonprofit category.
Based in Syracuse, CenterState CEO is a nonprofit organization focused on business leadership and economic development in a 12-county region of Central New York. It represents more than 2,000 members.
Contact Reinhardt at ereinhardt@cnybj.com
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