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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 […]
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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
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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
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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.
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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
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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
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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
St. Joseph’s formally opens new $1.3M sleep lab in Clay
CLAY — St. Joseph’s Hospital Health Center today cut the ribbon on its new 6,000-square-foot sleep laboratory on the North Medical campus in Clay. The
New York lobbies USDA for pilot program on Greek yogurt
New York is angling to be chosen as the site for a federal pilot program to test the cost effectiveness of including Greek yogurt in
Beardsley Design Associates names Reynolds new stockholder
AUBURN — Michael N. Reynolds, senior associate, project manager, and senior architect with Beardsley Design Associates (BDA), Architecture, Engineering and Landscape Architecture, PC, has been
Pepsi makes another donation to Entrepreneurship Bootcamp
SYRACUSE — The Entrepreneurship Bootcamp for Veterans with Disabilities received a $500,000 donation from PepsiCo, Inc. on Wednesday. The contribution brought the total donation from
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