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Final approval received in First Niagara-HSBC deal
First Niagara Bank’s planned acquisition of 195 HSBC Bank branches has been approved by the Office of the Comptroller of the Currency. “We are very
Binghamton jobs outlook improves, led by education, health care
BINGHAMTON — The Binghamton–area job market is gradually recovering from the great recession, led by growth in “eds and meds.” “Where we’re seeing our best
EI focuses on website marketing
ENDICOTT — With a new website and a new quarterly electronic newsletter, Endicott Interconnect Technologies (EI) is hoping to continue its bounce back from the
Greater Binghamton Chamber gears up for Expo 2012
BINGHAMTON — The Greater Binghamton Chamber of Commerce will celebrate the 25th anniversary of its business-to-business event — this year, called Expo 2012 — on
Layoff leads to new business venture
VESTAL — After spending 36 years working in the electronics industry, John Giangrieco is finally doing something he always wanted to do — run his own business. Giangrieco spent 34 years working at Universal Instruments, a Conklin–based provider of automation and assembly equipment products for the electronics-manufacturing industry, before the company downsized and left him
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VESTAL — After spending 36 years working in the electronics industry, John Giangrieco is finally doing something he always wanted to do — run his own business.
Giangrieco spent 34 years working at Universal Instruments, a Conklin–based provider of automation and assembly equipment products for the electronics-manufacturing industry, before the company downsized and left him without a job in March 2008. Over the past few years, he held a few other jobs in the electronics industry that just didn’t suit him, so last summer, he decided it was time to go into business for himself.
His first thought was to open a franchise. “At my age,” the 57-year-old says,” I don’t have a lot of time to start from scratch.” He liked the idea of having all the steps toward opening a business set out for him.
Knowing that he didn’t want to embark on anything in the food industry, that he had to be able to start the business as a one-person operation, and that he wanted to keep his initial investment below $200,000, Giangrieco began his search for a suitable franchise.
“It was a wide-open search,” he says, but eventually, with the help of New York City franchise consultant Thomas Scarda of FranChoice, Giangrieco was able to narrow it down to eight possible franchises.
His options included a painting business, vinyl and leather repair and restoration, and even a pressure-washing business, but Giangrieco eventually settled on Floor Coverings International (FCI), an Atlanta, Ga.–based provider of floor coverings that has 93 United States franchises and 11 Canadian locations.
“I met with the president of the company,” he says. “I met with a couple other franchisees.” The company offers a great support system, he says, which added to its appeal.
“There were a number of things that made me think this looked like a business I could fit into,” he says. Giangrieco followed through by attending a “discovery day” with three other potential franchisees and decided to sign on with FCI last August. By the end of October, he was finished with all his training, and he opened his FCI location at 1500 Vestal Parkway East on Nov. 1.
“This is a lot different than the standard box store,” he says of his FCI franchise. Where a typical flooring store features products on display that customers view in the store, FCI switches things around and takes the product to the customer, Giangrieco says.
“That’s what people do anyway,” he says. They visit the store and take samples home to see how the product fits in with their wall color, furniture, etc.
“I try to facilitate that process to make it more simple for the homeowner,” he says. That even includes software that allows him to take a picture of a room and digitally replace the existing floor with samples of other options, he says. People may also visit Giangrieco’s 1,350-square-foot store by appointment.
Initially, Giangrieco says he focused his marketing plan on the Internet, but he found that just wasn’t getting his name out in front of people. With two well-known large competitors — Warehouse Carpet Outlet and Endwell Rug — Giangrieco says customers need to know about his business up front and not just when searching for floor coverings online.
With that in mind, he switched his marketing focus over to newspaper and radio advertising and says he’s already starting to build that name recognition. He declined to say how much he has spent on marketing.
So far, business is slower than he’d like but it is starting to build under the new marketing efforts. “I’m landing jobs,” Giangrieco says. Still, he’s only about 20 percent of the way to the sales goal he’d hoped to achieve by this time. With that in mind, he lowered his goal for this year back a bit to what he calls a more “realistic” level. Giangrieco declined to share specific sales projections, but says he is encouraged by the improved quality of leads his new marketing efforts are bringing in. He hopes to be able to hire a sales and design associate by the end of this year.
To help further spread the FCI name, Giangrieco is working on networking and building connections. He participated in the recent Southern Tier Home Show and will participate in the Greater Binghamton Chamber of Commerce’s Expo 2012 event.
He’s also focusing on building a good reputation with his customers to help boost word-of-mouth benefits. “It’s going to be one customer at a time getting positive customer experience with Floor Coverings International,” he says.
FCI sells an array of floor coverings from carpeting to tile to hardwood. Giangrieco’s business is online at www.binghamton.floorcoveringsinternational.com.
FCI, founded in 1988, has grown from 70 franchises in 2008 to 93 locations in 2011.
FCI requires a $45,000 franchise fee and a 5-percent ongoing royalty fee for the length of the five-year franchise term, according to franchise-profile information on entrepreneur.com. Franchisees may renew their franchises. FCI requires its franchisees to have a net worth of at least $200,000 and $75,000 in liquid assets. The total cost to start a franchise can range from $133,000 to $305,500, according to entrepreneur.com.
Small-business optimism edges up in February
Small-business owners became slightly more optimistic in February, raising their hopes for future sales but taking a darker view of general business conditions. Those are the results of the Small Business Optimism Index from the National Federation of Independent Business (NFIB), a small-business association with members in Washington, D.C. and all 50 state capitals. The
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Small-business owners became slightly more optimistic in February, raising their hopes for future sales but taking a darker view of general business conditions.
Those are the results of the Small Business Optimism Index from the National Federation of Independent Business (NFIB), a small-business association with members in Washington, D.C. and all 50 state capitals. The optimism index inched up 0.4 points in February to 94.3.
The index has now posted an increase for six consecutive months. It is at its highest point since February 2011, when it registered 94.5.
However, the index’s gains have not been substantial to start 2012. February’s increase of 0.4 points comes after the index rose by just 0.1 point in January.
Business owners helped drive February’s index up with high hopes for future sales. Seasonally adjusted, a net 12 percent of survey respondents expected to generate higher sales during the next three months. That is up 2 points from January.
Survey respondents’ views of future general business conditions helped temper that optimism, though. A seasonally adjusted net negative six percent of survey respondents indicated they anticipate business conditions will be better in six months, down three points from January.
The negative survey result indicates more business owners actually expect business conditions will be worse in six months. The NFIB calculates net percentages by subtracting negative survey answers from positive answers. A positive net percentage indicates a majority of respondents were optimistic, while a negative percentage means pessimism was prevalent.
It’s encouraging that survey indicators like future sales expectations are on the rise in NFIB’s national survey, according to NFIB New York State Director Mike Durant.
Other survey findings
Small-business owners’ actual sales were down in February, according to the NFIB survey. Seasonally adjusted, a net negative 7 percent of business owners said sales were higher in the last three months, compared to the prior three months. That was a dip of 1 point from January.
Owners continued to cite sales as their single most important problem. In February, 22 percent of survey respondents said poor sales was their biggest problem, unchanged from January.
Hiring plans took a slight hit in February but remained positive. A seasonally adjusted net 4 percent of owners indicated they plan to increase hiring in the next three months, down one point from January.
Inventories will be on the rise in the next three to six months, according to the survey. Seasonally adjusted, a net 2 percent of business owners plan to increase their inventories, up five points from January.
Earnings improved in February, according to the index’s actual earnings-changes measurement, which gauges earnings over the last three months compared to the prior three months. Still, more business owners cited lower earnings than higher earnings, with a seasonally adjusted net negative 19 percent reporting higher profit. That’s up from a net negative 24 percent last month.
Small-business owners continued to make plans for capital expenditures. Seasonally adjusted, 23 percent of survey respondents said they planned capital expenditures in the next three to six months, down from 24 percent last month.
The NFIB randomly surveyed 819 of its members in the month of February to develop the Small Business Optimism Index.
The NFIB will issue the Small Business Optimism Index results for March on April 10.
Welch Allyn headquarters earns LEED gold status
After $35M renovation, building gets 2nd-highest U.S. Green Building Council certification. SKANEATELES FALLS — Medical-device manufacturer Welch Allyn’s newly renovated and expanded headquarters has received the second-highest Leadership in Energy and Environmental Design (LEED) certification, the company revealed April 2. The headquarters, which is located at 4341 State St. Road in Skaneateles Falls, is now
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After $35M renovation, building gets 2nd-highest U.S. Green Building Council certification.
SKANEATELES FALLS — Medical-device manufacturer Welch Allyn’s newly renovated and expanded headquarters has received the second-highest Leadership in Energy and Environmental Design (LEED) certification, the company revealed April 2.
The headquarters, which is located at 4341 State St. Road in Skaneateles Falls, is now LEED gold certified by the Washington, D.C.–based U.S. Green Building Council. The Green Building Council has established four levels of LEED certification to recognize green buildings.
Welch Allyn showcased its redone headquarters at a ceremony marking the LEED certification. Work to renovate and expand the building wrapped up in August 2011, about three years after Welch Allyn broke ground on the project, according to the company’s director of operations, Scott Spanfelner.
The headquarters stood at 225,000 square feet before the expansion, and construction added an additional 124,000 square feet. The project also renovated 80,000 square feet in the existing building.
Syracuse–based QPK Design was the architect for the project. Montour Falls–based Welliver was the general contractor.
Renovations and expansion at the building cost $35 million. Welch Allyn did not provide a breakdown of funding sources, but the company said it received grants from Empire State Development, the New York State Energy Research and Development Authority, and National Grid. It also received tax incentives through the Onondaga County Industrial Development Agency for the project.
“We created sight lines, large open hallways, and spaces to give greater visibility to the many working functions of our facility,” Spanfelner said during the LEED certification ceremony. “We created large windows and views into [the manufacturing space] in light of our pride as a manufacturer and to provide better visibility and connection to the other business functions in the facility.”
Design elements aimed at minimizing the building’s environmental impact and earning LEED certification include reflective roof materials that limit demand on cooling systems and low-flow water fixtures. The building’s lighting systems also sense natural light coming in through windows and adjust the intensity of lighting as needed.
“We significantly incorporated natural light through skylights and perimeter glass coupled with advanced control systems to automatically adjust high-efficiency powered lighting based on the amount of natural light available,” said Julie Shimer, Welch Allyn president and CEO.
The building’s energy use has increased by just 8 percent, while its size has grown by 55 percent, according to Welch Allyn. Its water consumption has decreased by 25 percent, the company said.
In addition, Welch Allyn transplanted more than 100 trees that had been growing in the expansion’s footprint. And more than 70 percent of construction materials used in the project were manufactured within 500 miles of Welch Allyn.
“When it comes to being environmentally sensitive, ecologically aware, and energy efficient, this building and the renovation of the existing building have done some wonderful things,” said Eric Allyn, co-chair of Welch Allyn’s board of directors. “We’re not here pushing an environmental angle because it’s a fad.”
More than 1,200 employees work at the building. It houses 160,000 square feet dedicated to manufacturing and operations supporting manufacturing.
The headquarters building also has a customer-service center and space dedicated to product development and administration. In addition, the building houses a fitness center and a cafeteria for employees.
S. Richard Fedrizzi, the president, CEO, and founding chair of the U.S. Green Building Council, was on hand to make note of the building’s LEED gold certification. Fedrizzi is a native of Camillus.
Welch Allyn was founded in 1915. The company has 2,750 employees in 26 different countries. Its manufacturing operations are in Skaneateles Falls; Beaverton, Ore.; Tijuana, Mexico; Navan, Ireland; and Jungingen, Germany.
New Center-State strategy aims to boost exports
SYRACUSE — A new regional strategy developed by CenterState CEO in a partnership with the Brookings Institution aims to double the Syracuse metro area’s exports in the next five years. The area’s exports already total $3.3 billion and while that may seem like a large number, it lags behind other regions, CenterState CEO President Robert Simpson
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SYRACUSE — A new regional strategy developed by CenterState CEO in a partnership with the Brookings Institution aims to double the Syracuse metro area’s exports in the next five years.
The area’s exports already total $3.3 billion and while that may seem like a large number, it lags behind other regions, CenterState CEO President Robert Simpson says. Exports account for about 8.7 percent of the Syracuse area’s gross metro product. The national average is about 11 percent.
Local businesses simply can’t turn away international markets, even though many remain hesitant to make the leap into exporting, Simpson says.
“We’ve got to move that number,” he says.
CenterState announced the project with Brookings, a Washington, D.C.–based public policy think tank, in June. Syracuse is one of four pilot cities to participate in the organization’s Metropolitan Export Initiative.
The others are Los Angeles, Minneapolis-St. Paul, and Portland, Ore.
CenterState announced the new plan and its three core strategies at its annual meeting April 4. The strategies include increasing export activity among the region’s top exporters, focusing on small and mid-size companies, and expanding service exports.
In practice, that means undertaking steps like streamlining export assistance to create one location for companies seeking help with international sales, Simpson says. CenterState also plans to develop profiles of some top international markets with data on growing industries and demand.
Simpson says many smaller firms feel they don’t have the resources to undertake international market research. The country profiles will help them get started.
And many of the region’s top exporters have agreed to take businesses new to international sales on trips overseas so they can learn.
“I think you ignore global markets at your peril,” says Amy Liu, senior fellow and co-director of the Brookings Metropolitan Policy Program. “There is huge wealth and a broad set of customers outside the U.S.”
Just 1 percent of all U.S. companies sell anything outside the country, Liu adds. Exporting, she says, isn’t in the DNA of American firms.
Businesses are naturally hesitant about working internationally given cultural and language roadblocks, Liu says. And for decades, U.S. companies enjoyed a thriving domestic market.
That’s not something they can rely on anymore, she notes. Companies can’t afford not to participate in the booming growth in nations like China, Brazil, and India.
Groups like CenterState CEO have close relationships with companies in local metro areas and can help connect them with services on the state and federal level, Liu adds. Making exporting a bigger part of the economic development conversation is a key step in boosting international sales everywhere.
Brookings estimates that every $1 billion in increased export sales creates 5,000 new jobs. The sales also contribute to 1 percent to 2 percent higher wages for workers.
Emerging Business Competition winner
Also at the CenterState annual meeting, the group announced MicroGen of Ithaca as the winner of the $200,000 grand prize in this year’s Creative Core Emerging Business Competition. The contest seeks to honor the region’s most innovative and growth-oriented company.
The firm’s technology harvests the energy created by vibrations for use in a variety of applications. The company is developing a line of micro-power sources to extend rechargeable battery lifetimes.
MicroGen had been a finalist in two previous years of the competition.
Past winners of the competition include Sound Reading Solutions, Widetronix, e2e Materials, and Mezmeriz, all based in Ithaca, and BrandYourself.com of Syracuse.
Homer startup plans building-control system
HOMER — A startup company in Homer is nearing launch of a new type of control system for building power systems. Cortland Research, LLC launched in 2011. The firm is a portfolio company of the Clean Tech Center at the Syracuse Technology Garden. Cortland Research currently employs four, including its president, Steve McMahon. The firm
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HOMER — A startup company in Homer is nearing launch of a new type of control system for building power systems.
Cortland Research, LLC launched in 2011. The firm is a portfolio company of the Clean Tech Center at the Syracuse Technology Garden.
Cortland Research currently employs four, including its president, Steve McMahon. The firm just completed a proof-of-concept demonstration system, McMahon says, and will now spend the next nine months to a year refining the system and designing a production version.
Lining up customers will also be a priority.
The system uses a combination of sensors connected to devices like lights or outlets, a central control system, and a user interface to measure and control power usage in a building. The technology can be set to automatically kill power to lights or outlets at a specific time or based on whether anyone is present in a room, McMahon explains.
Users can access the interface from anywhere with an Internet connection. Cortland Research plans to help its clients set up the systems according to their needs, McMahon adds.
The idea is to reduce power usage and help buildings run more efficiently, he says. Even if an employee of a business shuts down a computer at the end of the day, the machine can still draw power.
And plenty of schools, hospitals, and hotels leave lights on for hours or days when no one is around. It’s that type of “parasitic” power usage Cortland Research is attempting to cut, McMahon says.
The firm’s system can be tailored to user requirements precisely, he adds. If features smart outlets and switches that have micro sensors and RF antennas embedded inside, according to the company.
That allows for real-time analysis and allows users to manage outlets individually if they choose. In addition to time of day and the presence of people, the system can be adjusted based on rates of energy usage and other parameters as well.
The company is focusing initially on commercial buildings since they tend to pay more for power per kilowatt hour, McMahon says. But the system could be used in a residential setting as well, according to the company.
McMahon previously worked as an electrician before earning a master’s degree and working for Sensis Corp. of DeWitt. Several of Cortland Research’s employees are former Sensis employees as well.
The company is financed currently by an individual angel investor, McMahon says.
Cortland Research was a semi-finalist in this year’s Creative Core Emerging Business Competition. The firm did not make the event’s final round.
The contest seeks to honor the most innovative, growth-oriented company in the region and awards a $200,000 grand prize. This year’s winner is MicroGen of Ithaca.
Heart doctors open Community Cardiology at Community General
ONONDAGA — A new group at Upstate University Hospital at Community General is working to pump up cardiology care. Dr. Norman Jaffe and Dr. Jorge Martinez opened Community Cardiology at the hospital last Nov. 28. The group is a division of FamilyCare Medical Group, PC, which is a multi-specialty medical organization with more than 30
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ONONDAGA — A new group at Upstate University Hospital at Community General is working to pump up cardiology care.
Dr. Norman Jaffe and Dr. Jorge Martinez opened Community Cardiology at the hospital last Nov. 28. The group is a division of FamilyCare Medical Group, PC, which is a multi-specialty medical organization with more than 30 locations in Central New York.
The two doctors who formed Community Cardiology opened its doors just five days after a practice they had been affiliated with, Clay–based SJH Cardiology Associates, closed its office at Community General. Jaffe and Martinez decided to form their own cardiology office rather than leave Community General.
“Our thinking was that we’ve developed a nice practice on this side of town,” Jaffe says. “This is where our patients want to go.”
But they did not strike out on their own. Instead, they became a division of FamilyCare Medical Group, which Jaffe says referred about 75 percent of their patients to them.
“Do we go on our own?” he says. “We thought there were too many liabilities at this time, when everybody’s joining with other people. And this seems to be the natural alliance.”
In addition to Jaffe and Martinez, Community Cardiology employs a nurse practitioner and 10 other workers, such as technicians and an office manager. The group is already operating near capacity.
Jaffe estimates Community Cardiology can see between 750 and 800 patients per month at its current staffing levels. It can test about 160 patients per month, he adds.
The medical group has its own space to perform electrocardiographic treadmill stress tests that check a heart’s electrical activity and echocardiographic stress tests that use sound to examine the heart. It also shares Community General equipment that allows it to perform nuclear stress tests, which use small amounts of a radiopharmaceutical to develop images of the heart.
“We’re talking about how we’re going to add in capacity to keep up with demand, which is a nice problem to have,” Jaffe says.
No expansion plans are on the table yet. Jaffe and Martinez will meet with FamilyCare Medical Group before finalizing any growth goals.
However, Jaffe says he would like to add another practitioner to the office in a year. And he would like to add an invasive cardiologist in 18 months to two years.
Community Cardiology currently operates in 2,800 square feet in the Physicans Office Building North at Community General. The group has the right of first refusal to adjacent office space as well, so it could conceivably grow at its current location, according to Jaffe.
Launching Community Cardiology was no easy task, according to Jaffe and Martinez. They were unable to reach an agreement to take over a lease for 4,400 square feet of space that SJH Cardiology Associates had been leasing in the Physicians Office Building South, Jaffe says. So they decided to lease their current 2,800-square-foot space in the north building — six weeks before the office needed to open.
And while the office space is in a clinical building, it wasn’t being used as a doctor’s office before Community Cardiology moved in.
“This was a warehouse,” Martinez says. “It was filled with air compressors. We looked at it and we said, ‘You think this is going to be ready in six weeks?’ And they said, ‘Oh yeah. We’ll work hard.’ And they did it.”
Renovations to the office space included new walls and wider doors that could accommodate wheelchairs. Upstate University Hospital handled the renovations and built the cost into Community Cardiology’s lease.
Jaffe and Martinez footed startup costs of about $160,000, Martinez says. That includes leasing equipment and purchasing equipment. They used credit from M&T Bank to help finance the costs.
The doctors also had to shift their focus when they started Community Cardiology.
“Being part of FamilyCare is much more preventive and outpatient,” Jaffe says.
Martinez says that although it took him some time to get used to that idea, he is happy with the new emphasis.
“I couldn’t see myself not being involved in acute-care patients on a daily basis,” he says. “Now the pendulum has swung to diagnose them early so we don’t have to have multiple interventions that are costly in the future.”
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