Cornell to launch university-wide business minor

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ITHACA — Growing interest in business education at Cornell University led the school to add another academic option for its students. Cornell will launch a

Local unemployment rates dip in September compared to August

Employee Benefits & Human Resources

Unemployment rates in Central New York’s metro areas fell slightly in September compared to August but were still higher than year-ago levels, according to new

Environment New York report details potential costs of fracking

Energy, Environment & Sustainability, Regional News

Hydrofracking could cost New York State millions in areas like health care, property values, roads and infrastructure, and contamination, according to a report from Environment

NBT Bancorp Q3 profit slips as merger costs rise

Banks & Credit Unions, Regional News

NORWICH — NBT Bancorp, Inc., (NASDAQ: NBTB), which last month announced plans to acquire Alliance Financial Corp. (NASDAQ: ALNC), reported an earnings dip in the

Chemung Financial profit slips in Q3 but up year to date

Banks & Credit Unions, Regional News

ELMIRA — Chemung Financial Corp. (ticker: CHMG) reported that its third-quarter net income fell in spite of the banking company’s expansion into the Albany market

Elmira Savings Bank Q3 net income rises 6 percent

Banks & Credit Unions, Regional News

ELMIRA — Elmira Savings Bank (ticker: ESBK) reported net income of $1.4 million, or 44 cents per share, in the third quarter, up from $1.3

Tessy preps for more expansion at Elbridge HQ

Construction, Design & Real Estate, Manufacturing & Engineering, Subscriber Only, Technology

ELBRIDGE — Tessy Plastics Corp. didn’t take very long to outgrow a new building at its headquarters complex. The plastic component and packaging manufacturer is almost ready to break ground on an expansion of its 90,000-square-foot “south” building at 488 Route 5 in Elbridge. That building, which is one of three on Tessy’s campus at

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ELBRIDGE — Tessy Plastics Corp. didn’t take very long to outgrow a new building at its headquarters complex.

The plastic component and packaging manufacturer is almost ready to break ground on an expansion of its 90,000-square-foot “south” building at 488 Route 5 in Elbridge. That building, which is one of three on Tessy’s campus at that address, was completed in 2010.

Crews are slated to break ground on the addition in November. The expansion will add nearly 100,000 square feet of warehouse space that is necessary after Tessy took on new work, according to its president and CEO, Roland Beck.

“In order to do those new projects, we’ve encroached on our existing warehouse space,” he says. “We need to make up for that.”

Beck does not want to name the specific customers Tessy is working with on the new projects. But he notes that half of the new work involves manufacturing medical products and the other half is making consumer products.

Tessy currently employs around 820 workers in Central New York, about 100 of which are temporary. But it expects to make 40 of those temporary employees full time in the next few weeks.

And it will continue to add employees as its sales grow, Beck says. The south building’s new warehouse will likely require 30 new employees once it is open, he says. Construction could be completed as early as June.

“I don’t have exact numbers,” Beck says. “We grow about 10 percent a year, so we add on fairly steadily.”

Beck projects 10 percent revenue growth again in 2012. Tessy’s Central New York operations generated about $180 million in revenue in 2011, while the company tallied about $220 million between its New York locations and sites in Lynchburg, Va. and Shanghai, China.

Tessy’s other Central New York facilities include a 206,000-square-foot “west” plant and an “east” plant of approximately the same size at 488 Route 5 in Elbridge. The company also operates a 270,000-square-foot warehouse and assembly facility in the town of Van Buren. That facility, the former Syroco, Inc. building on Route 48, had been strictly warehouse space until this year.

Building the new warehouse on the south building in Elbridge will cost between $5.4 million and $8 million, according to Carl Hulett, Tessy’s director of maintenance. The company will finance the expansion with funding from M&T Bank. Syracuse–based VIP Architectural Associates, PLLC and VIP Structures, Inc. are set to design and build the addition.

It will include some energy-efficient features, like low-energy lighting and motion sensors that switch lights on and off. That’s keeping with an emphasis on energy efficiency in the south building.

The facility has energy-efficient injection-molding machines, high-efficiency chillers for air conditioning and process chilling, and water-economizing heat exchangers that allow Tessy to shut down its chillers during colder months. It also has water-cooled air compressors that reject heat to the building’s heating system to offset heating requirements.

Constructing the building and its energy-efficient features cost about $15 million, Hulett says. Sources of funding included Tessy’s cash, M&T Bank financing, and a $978,000 incentive from the New York State Energy Research and Development Authority’s (NYSERDA) Industrial Process and Efficiency Program.

“We estimate they’re saving approximately 50 percent over and above what they would have if they built that conventionally,” says Samuel Cosamano, president of IPD: Engineering of Syracuse, which helped to design the facility.

NYSERDA estimates show the building saves about $800,000 in energy costs annually, according to Stacey Sabo, a senior project manager at the authority. It saves over 8 million kilowatt-hours a year, she adds.

“The incentive is performance based,” she says. “So it’s based on actual savings.”

Tessy hasn’t signaled whether it plans to work with NYSERDA on the south building’s warehouse expansion. But NYSERDA is hoping to drum up corporate interest in its programs at the NEXT technology and innovation conference on Nov. 8 at the Holiday Inn Syracuse-Liverpool.

“NYSERDA was looking for a venue for us to present program information and to engage industrial manufacturing customers in Central New York,” Sabo says. “NYSERDA does have the capability of working with large industrial companies on very complex process projects.”

Contact Seltzer at rseltzer@cnybj.com

Credit unions move toward video teller machines

Banks & Credit Unions, Subscriber Only, Technology

Technology is pushing banks and credit unions into new territory, including the use of video teller machines. In a legal opinion, the National Credit Union Administration (NCUA) in August ruled that credit unions aren’t prohibited from using the machines, says Mark Harrington, an attorney with Syracuse–based law firm Mackenzie Hughes, LLP. Like any new technology

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Technology is pushing banks and credit unions into new territory, including the use of video teller machines.

In a legal opinion, the National Credit Union Administration (NCUA) in August ruled that credit unions aren’t prohibited from using the machines, says Mark Harrington, an attorney with Syracuse–based law firm Mackenzie Hughes, LLP. Like any new technology though, credit unions need to consider all the costs involved before jumping in, he says.

Video teller machines are somewhat similar to ATMs, Harrington explains. The machines themselves look like their older counterparts, but have video-conferencing capabilities so customers can talk with and see tellers as they conduct their business.

“You would be speaking with an actual teller of your institution and be able to transact business in the same way as if you did go into a branch and spoke with the same person,” Harrington explains.

And while ATMs are limited to transactions like deposits, withdrawals, and balance checks, video teller machines could handle business that’s a little more complex because of the presence of an actual human on the other end.

“Certainly there’s an element of convenience,” Harrington says of the potential appeal of the machines. “It’s a relatively new technology.”

The machines also offer a cost-effective way for credit unions to add another service facility where they might not be able to otherwise because of cost or space limitations, Harrington adds. It could be a way for institutions to explore new markets as well.

If a credit union placed a video teller machine in a new community and it proved to be popular, the institution might then follow up with a branch.

“That would be a part of the business plan in determining whether it’s a suitable area and if there’s enough traffic there,” Harrington says.

Finding a good location for one of the machines wouldn’t be any more difficult than setting up an ATM, a task most credit unions have completed numerous times, he adds. The machines do cost more and there are more back-office concerns.

A credit union would have to set up specific times that a teller would staff the machine, Harrington notes. An institution might choose to have a teller in an office dealing with in-person customers while staffing the machine at the same time, for example.

“Offering services that way may take some different coordination,” Harrington says.

He notes that most credit unions are highly sensitive about the level of service they provide to members. They would have to be sure they were not ignoring members who come to branches in person in favor of video customers, he says.

In its August decision, NCUA said it would allow video tellers to count as service facilities and satisfy the requirements of credit unions that would like to expand their membership territory or serve underserved areas, according to an article in the Sept. 26 issue of Credit Union Times magazine.

Contact Tampone at ktampone@cnybj.com

Bonadio Group enters the Mohawk Valley market

Insurance & Financial Services, Law, Accounting & Taxes, Regional News, Small Business, Subscriber Only

NEW HARTFORD — The Bonadio Group is adding to its Central New York presence once again, this time with the acquisition of an accounting firm in the Utica–Rome region. Bonadio, an accounting firm based in Rochester, acquired Richard Zweifel’s Utica–area accounting practice effective Nov. 1. The move increases Bonadio’s headcount in Central New York to

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NEW HARTFORD — The Bonadio Group is adding to its Central New York presence once again, this time with the acquisition of an accounting firm in the Utica–Rome region.

Bonadio, an accounting firm based in Rochester, acquired Richard Zweifel’s Utica–area accounting practice effective Nov. 1. The move increases Bonadio’s headcount in Central New York to more than 60 people, including offices in Syracuse, Geneva, and now the Mohawk Valley region. The firm has additional offices in Buffalo, Albany, and New York City.

Bonadio approached Zweifel about an acquisition. The firm was not out looking for a deal, says Zweifel, who joins Bonadio as managing partner for the Utica–area office, located at 7936 Seneca Turnpike in the town of New Hartford.

Zweifel says he and Bonadio worked together on joint projects in the past.

“Our clients here certainly mesh well with Bonadio,” he says. “We knew they were a quality firm. When they approached us, we knew it was something we needed to consider.”

The Bonadio Group provides a broader range of services, Zweifel notes. Their offerings include new areas of expertise for Zweifel’s clients like payroll, risk management, and financial planning, he says.

For Bonadio, the acquisition brings strong practices in health care and nonprofits, two areas that make up a sizeable chunk of the firm’s work, Bonadio Group Managing Partner and CEO Tom Bonadio says.

“We see it as another step forward for us in Central New York,” he says. “In Central New York, you have to have people who live in the community and know the community.”

Zweifel’s firm provides accounting, auditing, tax, and advisory services. In addition to health-care organizations and nonprofit groups, clients include small and medium-sized businesses, estates and trusts, and local governments.

Before the acquisition, Zweifel says he withdrew from his old firm, Gruver, Zweifel & Scott, which included the New Hartford office involved in the Bonadio deal and another location in Oneonta. The Oneonta office is not included in the acquisition and will continue independently.

Zweifel joined the Bonadio Group as an independent partner and brought the Utica–area work force with him, Bonadio explains. The deal adds nine new employees and about $1 million in annual revenue to the Bonadio Group.

The New Hartford office could already be in need of expansion, Bonadio says. The Bonadio Group currently has employees living in the Utica–Rome region who commute to either Albany or Syracuse.

They may now work locally, Bonadio says. The firm will probably also begin more hiring in the market.

Consolidation among accounting firms locally and nationally is likely to continue, Bonadio adds. Many smaller firms have aging partners without good exit plans, he notes.

“And it’s hard to compete,” he says. “They can’t find good people. They can’t work on larger companies because they don’t have enough depth. They’re looking to merge up.”

The Bonadio Group has more than 350 employees statewide and annual revenue of more than $50 million. The firm first entered the Syracuse market in 2007 with the acquisition of Loguidice & Kamide, CPAs PLLC.

It acquired the Syracuse operations of Philadelphia–based ParenteBeard in 2011, which added 21 employees and four new partners.

Contact Tampone at

ktampone@cnybj.com

Ex-Im Bank official returns to Syracuse

Banks & Credit Unions, Small Business, Subscriber Only

SYRACUSE — Central New York could be importing a new source of financing for small and medium companies after a federal official’s recent visit. Wanda Felton, the vice chair and first vice president of the Export-Import Bank of the United States, spent the day in Syracuse Oct. 26 to meet with area businesses. Felton, who

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SYRACUSE — Central New York could be importing a new source of financing for small and medium companies after a federal official’s recent visit.

Wanda Felton, the vice chair and first vice president of the Export-Import Bank of the United States, spent the day in Syracuse Oct. 26 to meet with area businesses. Felton, who gave the keynote speech in April at CenterState CEO’s annual meeting, returned to the area to build relationships with companies that want to export or boost their exporting.

“We had the opportunity to go around and visit some people,” Felton says. “It’s to talk with companies about what they need and to give them more insight into how Ex-Im Bank can help them with their financing needs.”

The Export-Import Bank of the United States, also known as Ex-Im Bank, is the country’s official export credit agency. It’s tasked with helping to finance the exports of U.S. goods and services to international markets. The bank provides working-capital guarantees, export credit insurance, loan guarantees, and direct loans.

It backed more than $119.2 million in disbursements to seven businesses in New York’s 25th Congressional District, which includes Syracuse and Onondaga County, between 2007 and 2012. Those disbursements supported more than $138.7 million in export sales, according to the bank’s website.

“I think there’s a lot of opportunity here,” Felton says. “You’ve got a very engaged business community, and it’s seen in a CenterState CEO membership that looks to be working very hard to promote exports. That’s very important.”

Felton’s Syracuse stop comes as Ex-Im Bank pushes to increase its visibility among small and mid-sized businesses. The institution has drawn the nickname “Boeing’s bank” because of high-profile financing it has provided for large corporations like the aerospace company, but the bank is working hard to reach smaller firms, Felton says.

Ex-Im Bank tallied $6 billion in small-business volume in the 2011 fiscal year. It is attempting to double its annual small-business volume to $9 billion between the 2010 and 2014 fiscal years. It’s also trying to add 5,000 small businesses to its portfolio in that time frame — the bank had added 1,839 toward that goal as of the beginning of August.

Felton met personally with representatives from three companies during her stop in Syracuse. She also sat down to lunch with the heads of about eight firms. And Ex-Im Bank’s Northeast and Mid-Atlantic regions director, Thomas Cummings, met with two companies on Oct. 25, the day before her arrival.

The bank doesn’t generally close financing deals after a first meeting, according to Cummings.

“It’s really great if you can close something on your first visit, but in most cases it may take a repeat,” he says. “It can be a very long process. Sometimes, it can run from as little as 30 days up to a couple years before the close.”

Ex-Im officials discussed mostly credit insurance in their Friday visits, Cummings continues. He met with companies that were more interested in working capital the day before, he adds.

Central New York seems to be rich in the conditions needed for boosting exports, Cummings continues.

“What I found is that in the Syracuse as well as the Rochester area, so many companies and so many people are already familiar with exporting, far greater than you’ll find in most cases in the United States,” he says. “I think it came from a few large, major corporations that really brought exporting into view. I think there’s a much higher knowledge of trade in the Syracuse, Rochester area than there is on average across the country.”

The Ex-Im officials urged any business owner interested in working with the bank to contact Cummings or John Tracy of the U.S. Commercial Service’s Syracuse associate office by telephone. Cummings can be reached at (212) 809-2652. Tracy is available at (315) 453-4070.

The officials’ visit dovetails with Central New York’s participation in an effort to boost exporting, the Brookings Metropolitan Export Initiative, according to Kevin Schwab, CenterState CEO vice president for marketing and communications. And a question-and-answer session business leaders held with Felton when she visited Syracuse in the spring probably helped draw her back to the area, he adds.

“That’s really, I think, a testament to what our companies said,” Schwab says. “You don’t usually get that.”

Contact Seltzer at rseltzer@cnybj.com

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