State warns utility operators about performance during storm

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New York state put utility operators on notice before the arrival of the winter storm that swept across the state last night and today. Larry

SUNY Cortland shuts down campus buildings amid power outage

Energy, Environment & Sustainability, Health Care, Regional News

CORTLAND — The State University of New York (SUNY) College at Cortland asked some employees to stay home today due to a power outage darkening

ESD approves grants for two Cortland County companies

Health Care, Nonprofits

Two manufacturers operating in Cortland County are in line for state aid toward expansion projects after Empire State Development’s (ESD) board of directors approved a

Consulting firm to host big data training at SU, Cornell

Health Care, Technology

SYRACUSE — Comrise, a global consulting firm, will sponsor big data training sessions in January at Syracuse University (SU) and Cornell University. The company, based

A New Way to Measure Prosperity: Counting Jobs Destroyed

Opinion, Subscriber Only

Everyone is focused on how many jobs America creates. Every month, we wait breathlessly for the U.S. and state labor bureaus to release the latest data on the economy’s employment status. An army of statisticians labors to analyze every facet: how many new jobs were created, the rate of unemployment, participation of workers in the

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Everyone is focused on how many jobs America creates.

Every month, we wait breathlessly for the U.S. and state labor bureaus to release the latest data on the economy’s employment status. An army of statisticians labors to analyze every facet: how many new jobs were created, the rate of unemployment, participation of workers in the labor force, the average duration of unemployment, the number of hours worked, and the average hourly earnings. The information is then recalculated by a variety of factors, such as age, minority status, and education levels.

The country expends this effort because we all agree that higher levels of employment and lower levels of unemployment are desirable. The assumption is that “full” employment is a requirement in order to generate prosperity.

I agree that employment is an important indicator of the country’s prosperity, but is it the only or the best unit of measure? I suggest we study another indicator: how many jobs are destroyed.

Before you think I am off my medication, let me explain.

In 1942, Joseph Schumpeter, an Austrian economist, popularized the idea that capitalism was based on “… the perennial gale of creative destruction.” That is to say, the free market is constantly churning, because entrepreneurs keep introducing innovations that disrupt, and in many cases destroy, established businesses and their jobs. Society accepts this disruptive process of transformation only because the residents, over time, see the benefits of greater productivity, which leads to higher living standards, new and better goods and services, shorter work weeks, and jobs demanding less physical labor.

The paradox of this creative destruction is that there is no gain without pain. Some individuals are worse off from the forces of change, and not just in the short run. So are corporations. Only five of today’s 100 largest companies were in the same category a century ago. Since 1970, barely half of the top 100 companies are still in the top tier.

What happens to all the labor that is disrupted? The country recycles its labor force from declining economic sectors into those that are expanding. The telecommunications sector is but one example. Remember Lily Tomlin playing Ernestine, the obnoxious telephone operator, on Rowan & Martin’s “Laugh-In” TV show? In 1970, the telecom industry employed 421,000 switchboard operators at a time when Americans made fewer than 10 billion long-distance calls annually. Today, there are 156,000 operators who handle more than 100 billion calls. Technology now allows each operator to handle 1,861 calls per day versus 64 back in 1970. That means more “ringy-dingys” per operator per day and lower costs for consumers.

Think farming. In 1800, it took 90 percent of Americans living on farms to feed a population of 3 million. By 1900, when the country had 90 million people, 40 percent of the population lived on farms. Today, about 2 percent of the population lives on farms and not only feeds 310 million people, but also exports foodstuffs to the rest of the world.

What happened to the switchboard operators and the farmers? What happened to the country’s 238,000 blacksmiths employed in 1910, the 109,000 carriage and harness-makers in 1900, or the 75,000 telegraph operators in 1920? They found work in new industries as electricians, auto mechanics, airline pilots, medical technicians, truck or bus drivers, appliance salespeople, software developers, and webmasters.

Thus, I propose that the U.S. Department of Labor create the “Bureau of Destroyed Jobs,” an office that tracks job destruction as a way of measuring the country’s prosperity. The purpose is to take a long-term view of our prosperity by measuring job and industry churn. This would help to remind the country that our short-term government policies designed to insulate corporations and their workers from change almost always backfire. Instead of allowing inefficient producers to go out of business, government steps in too often to protect them, thus delaying the shift of resources to more productive sectors and adding costs to consumers and, oftentimes, taxpayers.

Government wants the gain without the pain. The irony is that societies that think they can reap the gain of creative destruction without the pain end up experiencing the pain without the gain. Think Jimmy Carter, who thought government could tax its way to prosperity. What we reaped were rising unemployment and inflation, stagnant markets, and high energy prices. Think President Obama, who also wants government to tax and spend us into prosperity. The result is a sluggish economy, workers abandoning the labor force, astronomical debt and deficits, and crony capitalism. Can inflation be far behind?

Society both loves and hates its entrepreneurs. They bring us better things and create jobs. But they simultaneously disrupt the established order and kill jobs. We also can’t seem to accept their pursuit of self-interest — read profit motive — which ignites the progress that makes the rest of us better off.

The country would prosper by establishing a policy where the majority of our taxes go to educating our students and retraining our workers to prepare the labor force to adapt to constant change rather than to spend it on trying to retard the impact of innovation by wrapping a protective net around its established corporations and citizens.

The Bureau of Destroyed Jobs would help us to recognize the good that comes from economic turmoil.

Norman Poltenson is publisher of The Central New York Business Journal. Contact him at npoltenson@cnybj.com

SUNYIT, nfrastructure launch internship program

Health Care, Subscriber Only

MARCY — The State University of New York Institute of Technology at Utica/Rome (SUNYIT) and Clifton Park–based nfrastructure are launching a new program to help develop the state’s information-technology workforce. The program will allow students to work on projects at the nfrastructure Center of Competency in Information Technology (NCCIT) site on the SUNYIT campus. The

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The program will allow students to work on projects at the nfrastructure Center of Competency in Information Technology (NCCIT) site on the SUNYIT campus. The center is a public-private partnership among nfrastructure, the College of Nanoscale Science and Engineering at the University at Albany, and SUNYIT.

The center works on technology projects for local and state government entities, institutions of higher education, and health-care facilities. Nfrastructure designs, builds, and operates technology infrastructure for public and private entities.

Students in the new program at SUNYIT could wind up working on just about anything nfrastructure has in its pipeline, says Larry Delaney, president of the NCCIT.

“Employers don’t just want book smart,” Delaney says. “They want guys and gals that have put their hands on things. They’ve designed networks. They’ve worked in a data center.”

Delaney says he’s not sure how many students will be involved in the program yet, but he is planning to start with two and scale from there. The program will also help SUNYIT students with required senior projects.

Nfrastructure staff members will mentor those efforts, Delaney says.

The effort at SUNYIT is just the beginning of what NCCIT wants to accomplish, he adds. The center also has an office at the University at Albany and a partnership with the Stony Brook University.

“This is the first iteration of something we intend to repeat at lots of SUNY schools,” Delaney says.

Students could work on projects including network monitoring, upgrades, design, equipment installation, and more, he adds.

The program makes sense for nfrastructure as well. One of the company’s priorities is to attract and retain top technical talent, Delaney says.

Working closely with SUNYIT and other schools will give the firm first crack at hiring some bright students. The NCCIT has six employees at SUNYIT. That total could grow to 60 or 70 or more given the pipeline of customer opportunities in place, Delaney says.

Nfrastructure employs more than 150 people companywide.

Students will receive academic credit for the internships and be paid as well, says William Durgin, SUNYIT provost. It’s a terrific opportunity for them to gain experience on projects for actual, real-world clients, he adds.

Students, he notes, are quick to detect projects that are designed by faculty as good academic experiences.

“There is no substitute in terms of engagement for real-world projects,” Durgin says.

Companies running programs like this one often give students backburner projects that accumulate over time, he adds. They’re often initiatives companies want to move forward, but simply don’t have the time or resources to execute.

SUNYIT is working to launch similar internship programs with other area companies, Durgin says. The school is looking to work with M. A. Polce Consulting, an information-technology consulting firm, on a program and wants to explore partnerships in advanced manufacturing and engineering as well.

M.A. Polce is based in Rome and has an office in Syracuse.

Contact Tampone at ktampone@cnybj.com

Northside UP aims to foster entrepreneurship with grant

Health Care, Small Business, Subscriber Only

SYRACUSE — A grant from the Central New York Community Foundation will help the Northside Urban Partnership (Northside UP) launch a business incubation project on the city’s Northside. The project will assist entrepreneurs in starting small businesses in Northside neighborhoods by providing support, education, and lending assistance, according to the foundation. The foundation made the

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SYRACUSE — A grant from the Central New York Community Foundation will help the Northside Urban Partnership (Northside UP) launch a business incubation project on the city’s Northside.

The project will assist entrepreneurs in starting small businesses in Northside neighborhoods by providing support, education, and lending assistance, according to the foundation. The foundation made the $85,000 grant in celebration of its 85th anniversary.

Northside UP beat out 15 other applications. Northside UP is a collaboration of business and community organizations aiming to revitalize the Northside neighborhood of Syracuse. It is led by organizations including St. Joseph’s Hospital Health Center, CenterState CEO, and Catholic Charities.

The Community Foundation-funded project is an outgrowth of work Northside UP has already been doing, says Dominic Robinson, director of Northside UP. One of the organization’s main goals throughout its history has been to develop neighborhood businesses.

But the group was finding that some people it helped faced challenging barriers to success, including lack of business knowledge and basic education. Many Northside residents are recent immigrants or refugees and their ideas were good, Robinson notes.

But their lack of experience was a major obstacle.

“It really prohibited them from pursuing those ideas any further,” Robinson says.

Others the group worked with were able to get businesses off the ground, but then needed lots of help after the fact dealing with zoning issues, permitting problems, and basic financial reporting.

The new grant will allow Northside UP to establish a formal program that will allow the group to select participants with the best chance for success. Participants will go through an intensive training program over several weeks that will provide a grounding in business basics and entrepreneurship and help them refine their ideas, Robinson says.

The plan is then to help participants launch their business in an incubator setting and continue to provide them with counseling and support as they get their ventures off the ground. Launching first in an incubator will allow participants to determine whether their ideas are truly viable, Robinson says.

Plans are in place for a pilot program this spring with three to five participants, who will incubate their companies at the Central New York Regional Market and Downtown Farmers’ Market in Syracuse this summer. Northside UP eventually wants to open a marketplace for program participants on the Northside, Robinson says.

After the pilot program, the organization will launch a larger version next summer with seven to 12 participants. The goal is to run two to three program sessions per year, Robinson says.

Although Northside UP has been working on developing local businesses for years, the new program is a big step forward.

“There really are needs beyond what we’ve been doing,” Robinson says.

The Community Foundation is a charitable foundation with assets of more than $130 million. It awards close to $6.7 million in grants to nonprofit organizations annually.

Northside UP’s application stood out for the level of collaboration it involved, says John Eberle, vice president for grants and community initiatives at the Community Foundation. Some partners on the project include Syracuse Cooperative Federal Credit Union, the Tech Garden in downtown Syracuse, and ProLiteracy.

Many of the residents on the Northside have incredible skills and creative ideas they could transform into vibrant businesses with a little help, Eberle adds.

“The idea of helping create pathways for entrepreneurs to start businesses and create jobs — that was just really exciting,” he says. “It really resonated with us.”

Contact Tampone at ktampone@cnybj.com

Edward Audi’s move to Stickley president part of ‘gradual handoff’

Manufacturing & Engineering, Small Business, Subscriber Only

MANLIUS — The recently appointed president of L. & J.G. Stickley, Inc. says his new seat at the furniture company is part of a transition from one leadership generation to the next. Edward Audi became the Manlius–based wood and upholstered furniture manufacturer’s president in a move announced to employees Dec. 1. He had been the

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MANLIUS — The recently appointed president of L. & J.G. Stickley, Inc. says his new seat at the furniture company is part of a transition from one leadership generation to the next.

Edward Audi became the Manlius–based wood and upholstered furniture manufacturer’s president in a move announced to employees Dec. 1. He had been the company’s executive vice president and president of its Stickley International division.

He takes over a president’s role previously held by his mother, Aminy Audi. She will continue to be Stickley’s CEO and the chairman of its board of directors. The Audi family owns 100 percent of the company.

“It’s a planned gradual handoff from my mother to the next generation,” Edward Audi says in an interview. “Over the past five years, my mother and I have worked very closely on all major decisions at Stickley. And this is just a natural progression with additional responsibilities for me in manufacturing, product development, and human resources.”

Audi says he will also take on more strategic-planning duties. The company does not share revenue totals, but it hopes for “double-digit” percentage growth, he says.

Stickley is working on developing a contract and hospitality division focused on four-star and five-star hotel properties, along with increasing its institutional business. That follows the creation of its Campus Collection, which it started in 2011 when it furnished the State University of New York College of Environmental Science and Forestry’s first dormitory, Centennial Hall, in Syracuse.

Stickley is already heavily involved in custom design for hotels, according to Edward Audi. But the company isn’t ignoring its retail business, which operates as Stickley, Audi & Co. It plans to open between five and 10 new stores in the next few years.

The new stores will come in regions where Stickley already operates, he says. The company currently has 14 retail locations in New York, New Jersey, Massachusetts, Connecticut, Pennsylvania, North Carolina, and Colorado.

“The contract division represents, I would say, the biggest growth opportunity for Stickley,” Audi says. “That would not interfere with our extremely important residential business.”

Stickley is currently hiring for manufacturing positions at its 425,000-square-foot manufacturing facility at its headquarters at 1 Stickley Drive in Manlius. Audi would not disclose the exact number of open positions, but he says the company has about 1,000 employees in Central New York. It employs roughly 1,400 companywide.

The recent recession has been difficult for the entire furniture industry, Audi says. He believes conditions are slowly improving, however. And he points to the Audi family’s track record with employees since it purchased Stickley in 1974.

“What I’m most proud of is our track record of never having had any layoffs in almost 40 years,” he says. “We had to reduce hours at one point. And I want to publicly thank our employees for their patience and hard work through those difficult times.”

Edward Audi also gives credit to his mother for guiding the company through those tough years.

“She has certainly earned the right to smell the roses and enjoy some good times with book club, which is a group of friends she really enjoys being with,” he says. “She’s done a tremendous job navigating these uncertain times and bringing Stickley through this recession. I can’t ever imagine her not being involved in the business.”

Aminy Audi expressed confidence in her son in a news release.

“His deep appreciation for Stickley’s heritage and for our long-term commitment to our dealers and customers, combined with his vision, passion, and innovative spirit, will help him take the company to the next level,” she said. “During his tenure at Stickley, Edward has worked in almost every department and has become very familiar with every aspect of the business. He is well prepared for this new leadership role and has the support of everyone at Stickley.”

In addition to Manlius, Stickley also has manufacturing operations in Archdale, N.C. and Vietnam.

Contact Seltzer at rseltzer@cnybj.com

Dependable Disposal testing truck to help it pick up and grow

Small Business, Subscriber Only

VAN BUREN — A Central New York trash hauler is in the midst of a pilot program testing a new truck that’s less stressful on its pilot. Dependable Disposal, headquartered at 6948 Herman Road in Van Buren, started sending an automated split-body vehicle on some of its residential routes in November. The truck uses a

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VAN BUREN — A Central New York trash hauler is in the midst of a pilot program testing a new truck that’s less stressful on its pilot.

Dependable Disposal, headquartered at 6948 Herman Road in Van Buren, started sending an automated split-body vehicle on some of its residential routes in November. The truck uses a mechanical arm to pick up recycling and trash receptacles and empty them into separate compartments for disposal or recycling.

That means a driver can operate the truck alone without having to constantly climb in and out of its cab, cutting the potential for injury. It could also allow Dependable Disposal to add more routes without having to take on the expense of rapid hiring.

The company currently operates some routes with two-man crews, each of which is made up of a driver and a laborer dumping bins. It also has routes served by lone employees who both drive and jump out of their trucks to dump bins.

No employees are in line to lose their jobs because of the new truck, according to Dependable Disposal. The automated process is intended to be better for both workers and customers, says Steve Morgan, owner and president of Dependable Disposal.

“It’s more convenient for the customer and much safer from the collection standpoint,” he says.

Convenience for customers stems from the fact that Dependable Disposal provides each customer being served by the new truck with two containers — one for recycling and one for trash. The containers come in 35-gallon, 65-gallon, and 95-gallon sizes, which are much larger than the standard “blue bin” Onondaga County recycling receptacles, Morgan says. And they’re lidded, keeping bottles and papers from blowing away when the receptacles are on the curb.

Customer feedback has been largely positive, according to Morgan. A few believe the 35-gallon containers are too large, but the company has actually picked up some new customers because of the system, he continues.

“It’s allowed us to differentiate ourselves from our competitors,” Morgan says. “None of our other competitors are offering two containers. They’re offering the trash container, but not one for recycling.”

The automated split-body truck is a significant investment. Purchasing it and its compatible containers cost a total of $350,000, Morgan says. Dependable Disposal paid for the vehicle using its own cash, along with financing from Lyons National Bank.

Morgan wants to continue the vehicle’s pilot program for another few weeks before he decides whether to add similar trucks in the future.

“We’ll probably look at it through January and then make that determination,” he says. “We want to see how the holidays go.”

The truck serves routes with a total of about 2,000 residential customers. It is one of 22 vehicles at Dependable Disposal and Morgan Rubbish Removal, a sister company Morgan owns that focuses on the commercial market.

Both companies are headquartered in 16,000 square feet of space at 6948 Herman Road. Together they employ 32 people, which is up six in the past year.

The hiring came because of a municipal contract with the town of Camillus, Morgan says. Dependable Disposal also has a municipal contract with the town of Geddes. It and its sister company serve residential and commercial customers in Onondaga County. Much of their business is in regions to the west of Syracuse, although they are also expanding in Cayuga County.

Morgan anticipates keeping employment levels steady over the next year. He declines to share specific revenue totals, but anticipates growth of about 5 percent.

“We’re always adding front-load accounts — that’s our commercial side,” he says. “Every month we’ll get three to five accounts.”

Contact Seltzer at rseltzer@cnybj.com

Revolving loan fund to aid rural small businesses

Small Business, Subscriber Only

Program includes SBDC at OCC providing technical support to loan recipientsSYRACUSE — A federal grant will help support a new revolving loan fund for small businesses in rural parts of the greater Syracuse area. The Central New York Regional Planning and Development Board applied for $500,000 from the U.S. Department of Agriculture to fund the program.

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Program includes SBDC at OCC providing technical support to loan recipients

SYRACUSE — A federal grant will help support a new revolving loan fund for small businesses in rural parts of the greater Syracuse area.

The Central New York Regional Planning and Development Board applied for $500,000 from the U.S. Department of Agriculture to fund the program. The loan fund will get $400,000, with the rest of the money going toward technical support for loan recipients from the Small Business Development Center (SBDC) at Onondaga Community College (OCC).

Applicants must come from rural areas in Onondaga, Oswego, Cayuga, Cortland, or Madison counties. The program is specifically targeted at very small firms with fewer than 10 employees, says Michael Rosanio, regional loan manager for the planning and development board.

The maximum loan amount is $50,000, which can cover up to 75 percent of a project’s cost.

“There’s generally kind of a lack of money for small rural businesses all in all,” Rosanio says.

The loans will go toward actions like equipment purchases or they’ll help provide working capital, he adds. Loan terms will generally be limited to seven years or less so major construction projects or real-estate transactions aren’t in the cards.

The goal, Rosanio adds, is to focus on companies that are key pieces of their local communities.

The region’s small villages are important economic assets, he notes. But most of the area’s economic-development efforts focus on Syracuse as the region’s urban core.

The loan fund is a way to help tap into the potential of small businesses in less-populated areas.

“We believe they’re important economic and cultural and social assets in our region,” Rosanio says. “This sort of program could help get economic activity going in those areas again.”

Banks, Rosanio adds, don’t often provide loans at the amounts this program will support. They’d rather see a business owner tap into home equity or open some other line of credit for smaller projects, he says.

“They don’t do smaller commercial loans,” he says. “A lot of these [small businesses] are pretty tapped out. They’ve already tapped into their home equity and their savings.”

Other loan funds sometimes have strict job-creation requirements that very small firms cannot meet, he adds. Worthwhile projects end up falling through the cracks as a result.

The SBDC will provide one-on-one counseling for recipients of the loans. Recipients will also be required to attend the center’s 20-hour class on business basics.

Counselors could work with the business owners on developing a business plan or marketing strategy, depending on what they need, says Joan Powers, the SBDC’s assistant director and a certified business adviser. The center is also developing a workbook targeted specifically at marketing businesses in rural areas.

The SBDC will be able to provide companies some help with market research as well by providing access to the State University of New York research network, Powers says. The businesses will have access to information on trends and various demographic statistics that could help them refine their strategies.

Counselors will also help business owners work on projections to determine if their companies are financially viable.

Contact Tampone at ktampone@cnybj.com

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