BusinessJournal

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The Regions Business Publication
April 2013

OF WEST CENTRAL OHIO

K&M Tire expands headquarters

A northwest Ohio company, headquartered in Delphos, recently completed an expansion. K&M Tire, a wholesale tire distributor, is located in 11 states and 16 cities including Toledo, Detroit, and Grand Rapids. The expansion was completed in January 2013. The companys expansion included 6,000 additional square feet of office space and 100000 additional square feet of warehouse space at its Delphos headquarters. Ken Langhals, president of K&M Tire, attributed the need for this expansion to K&M Tires recent acquisition of Triton Tire, including six warehouses in Minnesota, North Dakota, Iowa, Nebraska, and Kansas. New warehouse and office equipment were added to the expanded space. This included new racking in the warehouse for the tires and additional desks and partitions in the new office space. The total amount of investment in this project is over $2.5 million and it created around 15 new jobs, according to Langhals. According to Bonnie Marlow, K&M Tire marketing manager, a variety of positions were added. The company hired new warehouse employees and delivery drivers. Additionally, we recently added a bilingual inside sales representative, enlarged the marketing staff, and additional office staff, Marlow stated. Some things we always look for in a good employee include having a great customer service attitude and good work ethic. Marlow noted the created jobs added approximately $525,000 to the companys annual payroll. The

Logistic company expands

Headquartered in Findlay, Ohio, Ohio Logistics has seen a tremendous amount of growth in the last 21 years and is now expanding into the g2 revolution building at 14601 C.R. 212. Their steady growth in the Findlay area as well as across the United States allows Ohio Logistics to respond to their customers increased needs in the region. While Ohio Logistics

company currently has over 350 employees across its locations with 130 at the Delphos headquarters. According to Marlow, the 130 employees includes warehouse workers, route drivers, inside sales staff, accounts receivable, accounts payable, human resources, IT, inventory, logistics, marketing, and management. The general contractor for this expansion project was Unverferth Construction from Kalida. The architect was Technicon Design Group from Ottawa. Marlow stated that the Delphos facility is very green. She noted the lighting in the warehouse is set up in zones with motion detectors. The entire facility in Delphos uses geothermal heat, Marlow commented. She noted that the company does not provide any support to dealers for tire recycling but it is planning on developing such a program in the future. Apart from selling tires, Marlow stated the company partners with its customers to help customer businesses. We recognize when our customers grow and succeed, we will continue to grow and succeed, Marlow stated. Our outside sales representatives dont just sell tires, they work as business consultants See K&M, page 8

maintains facilities in Ohio, Indiana, Georgia, Pennsylvania, New York, Kentucky and Wisconsin, this new location will allow them to have a closer proximity to their labor resources and their growing customer base in the Findlay See LOGISTIC, page 8

Cotterman & Company to Celebrate 35th Anniversary

In the year 2013 Cotterman & Company will celebrate its 35th anniversary of roofing excellence. Cotterman & Company has been a pioneer in the commercial roofing industry since 1978. Family-owned and operated for two generations, the company installed and warranted more than 30,000,000 square feet of roofing. In the early years, the company had employed just a hand full of employees and serviced the Shelby/Auglaize County region. Currently, they have over 75 employees servicing the entire state of Ohio as well as eastern Indiana. The majority of their projects are located between Findlay, Dayton, and Columbus corridor. The second generation Andy and Mike Cotterman acquired full ownership in 2009 from Max R. Cotterman, their father and founder. The company has continued substantial growth since the transaction. We continue to operate under the core principles Max practiced. I believe this diSee ANNIVERSARY, page 8

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TheBusinessJournal

April 2013

Credit Managers Index Rebounds to Decembers Level of 54.9

The National Association of Credit Managements economic report for February 2013 depicts a stalled economy. Political and economic concerns appear to weigh more heavily on the manufacturing sector, while data from the service sector shows progress. Columbia, Maryland: February 28, 2013The National Association of Credit Managements (NACMs) Credit Managers Index (CMI) for February is exactly the same as it was in December54.9. This is just slightly better than it was in January when the index fell to 54.6. For all intents and purposes, the readings suggest that the economy has stalled. The interesting movements are in the individual factors where there is actually some better news overall. The favorable factor index is up to just below where it was in November, at 59. This is a slight improvement from January, and the gains occurred in important factors.Sales jumped, taking the reading back to last years levels. The strength of this indicator cant be overlooked, as this signals substantial activity despite all the concerns registered over the fiscal cliff, the debt ceiling and the sequester said NACM Economist Chris Kuehl, PhD. However, the impact has been hard to figure out. On the one hand, it is pretty obvious that the lower GDP number from the fourth quarter was directly related to fiscal cliff concerns within the business community, but the latest revisions show no dip into recession as first thought. The data coming from the Purchasing Managers Index shows similar variability, and other signs within the rest of the CMIs favorable factors point to continued confusion and caution, Kuehl noted.The unfavorable factor index rose from 51.9 to 52.2. In general, there was either significant progress or stability in the factors. Of note, rejections of credit applications fell, but it is still higher than the majority of the readings in the last year. The trend seems to indicate that most of those seeking credit are qualified and most are getting the credit they apply for. The overall impression is of a steady state, with a slight movement in a positive direction, said Kuehl. What makes all of this interesting is that it is taking place against a backdrop of political drama that many believe will cause serious economic dislocation before all is said and done, and it seems to be the manufacturing sector that is harboring the most concern. Decisions in manufacturing have to be made in advance, making this industrial sector generally more cautious and reluctant to make long-term plans. The negatives that caused the manufacturing index to decline just slightly to 53.6 seem to have come from the sectors favorable factors, the most serious of which was new credit applications, which slipped to the lowest since November and the second lowest in the last year. The overall takeaway for the manufacturing sector is that there appears to be some pent-up demand for growth, but there are also inhibitions that seem to stem from the political wrangles, said Kuehl. In the service sector, there was some pretty good news, with the gains helping to offset the slips in the manufacturing data. The service sector index improved to 56.2, resulting in the combined index looking more positive. The most impressive gain occurred in sales given that this is not the strong season for the retail community. The sense from the service side is that some of the more stressed sectors are making a bit of a comeback, with housing at the top of the list. A couple of conclusions can be reached from the data, said Kuehl. It is either a testament to the fact that business can ignore political gyrations and grow anyway, or it means that the economy would be growing that much faster if all the political histrionics were not a factor. The complete CMI report for February 2013 contains more commentary, complete with tables and graphs. CMI archives may also be viewed on NACMs website.About the National Association of Credit ManagementNACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACMs collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nations policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. Its annual Credit Congress is the largest gathering of credit professionals in the world.Source: National Association of Credit Management

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April 2013

TheBusinessJournal

The secret of lousy service and why it happens

QUESTION: Why does lousy service occur? ANSWER: Lousy service happens because (big) companies dont understand people OR training. I am amazed at how many times someone in a service environment delivers lousy service. And its often not just lousy add rude, offensive, abrasive, defensive, maddening, and most of all disappointing. GREAT NEWS: It doesnt have to be like that. If I take the time to complain, which I rarely do anymore, the manager will always ask, Did you get the name of the person? Somehow getting the name of the person is important to the manager. But it is unimportant to me. I never get their name. The manager is looking to blame someone. Im looking for someone to accept responsibility. The manager is NEVER the one who takes it. I have found poor service is a reflection of the company and its leaders, not just the person who delivered it. MY REALITY: When a manager asks me for the persons name who delivered lousy service, I reply, Dont yell at the person who gave me lousy service. Yell at the person who trained them. and their leadership, underThe person delivering poor serpaid, rarely if ever praised, vice is most likely to have been and are exposed to constant poorly trained or ill trained, or customer complaints. They both. Theyre doing what they dont like their job, they were trained to do, and say dont like or respect their what they were trained to say. leader, they dont like their Or the employee will modcompany, and they dont ify training and make statelike the people they serve. ments based on their at the Not good. moment feelings: Now granted, this is a Sorry about that generalization, but Im in Thats our policy the air enough to make the Im just doing my job comment based on 20 years They dont pay me to of flying experience. I get Jeffrey think an occasional nice person. Gitomer Im just a peon I have an occasional pleasOr worse, they become deant experience. But they are fensive, even rude, when a customer ex- so rare that I actually go up to the person presses frustration or anger as a reaction and thank them for being nice, for being to what happened. Employees do that happy, and for being friendly. because someone TAUGHT THEM they So lets get back to the question at dont have to take gruff from a customer. hand. Why does lousy service exist? (REALITY: The customer provides the Who is responsible to make great sermoney for their paycheck). vice possible? Ever get poor service at an airline? Of Who is responsible to make great sercourse you have, EVERYONE HAS. It vice happen? happens because the people who work at I always ask people in service posithe airlines are undertrained, poorly man- tions, Hows it going? Most people aged, feel put upon by their management respond in some negative fashion. Statements like, Well, tomorrow is Friday! or Ill let you know in two hours when I get off. or Youre kidding, right? These are losing, self-defeating statements. Statements made by people who fail to understand that doing their best, having a great attitude, and having a high sense of personal pride have nothing to do with the job. They have everything to do with who you are as a person. Most of the front-line servers are in low-paying positions. When you combine that with our feeling of entitlement workforce and with training thats all about the company, with a smattering of, smile, greet the customer, thank the customer, you have a perfect setting for mediocre or lousy service to occur most of the time. About now, you want answers to this dilemma. I have them. They revolve around four words you already know: positive attitude and personal pride. But there is way more to these four words than your known definition. Positive attitude and personal pride hold the key to your success, and they will be discussed in-depth next week.
Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training, seminars, and webinars - or email him personally at salesman@gitomer.com. 2013 All Rights Reserved. Dont even think about reproducing this document without written permission from Jeffrey H. Gitomer and Buy Gitomer. 704/333-1112

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Findlays Tall Timbers Distribution Center Incoporated expands into Middletown

Findlays Tall Timbers Distribution Center Incorporated (FTTDC) has contracted with an industry leading metal food and beverage container manufacturer with several locations around the country. In an announcement today by Charles Bills, president of Findlays Tall Timbers Distribution Center Inc., and affiliates, Bills said This facility, located at 1225 Logistics Way, Middletown Ohio will enable us to service our customers in the greater Cincinnati area. James Zuehlke is the Manager of the facility, and the telephone number is (513)-5397001. FTTDC is headquartered in Findlay, Ohio, and is one of the largest privately held logistics companies in the Midwest. It provides innovative warehousing, distribution, and transportation services. FTTDC operates approximately 6.5 million square feet of warehouse space in 24 locations in Ohio, Indiana, Pennsylvania, New York, Wisconsin, Kentucky and Georgia. FTTDC also operates Foreign Trade Zone #151 in Findlay, Ohio and Foreign Trade Zone #29 site 10 in Louisville, Kentucky. The Transportation Group operates its own fleet of trucks, Doing Business As Ohio Logistics Transportation. The Documents Storage Company has a major warehouse in Findlay and delivers the most complete records management and document destruction services in its marketing area. For more information, visit the web site at www.Ohiologistics.com

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TheBusinessJournal

Construction materials prices increase 1.3 percent in February

Leading nonresidential construction indicators generally have turned positive and the associated increase in demand for materials appears to be driving prices higher. ABC Chief Economist Anirban Basu. Summary The nations construction material prices rose 1.3 percent in Februarymarking the sharpest increase in 22 months, according to the March 14 Producer Price Index (PPI) report by the U.S. Department of Labor. Overall, construction materials prices remain 2 percent higher than one year ago. Nonresidential construction materials prices rose 1.4 percent last month, and are up 1 percent on a year-over-year basis. Softwood lumber prices increased 2 percent last month and are up 27 percent compared to February 2012. Prices of concrete products rose 0.4 percent in February and are up 2.3 percent from one year ago. Plumbing fixtures and fitting prices were up 0.3 percent last month and are 1.7 percent higher than the same time last year. Prepared asphalt, tar roofing and siding product prices fell 1.5 percent, though prices remained 7.2 percent higher than a year ago. In contrast, a number of materials prices recorded declines. Fabricated structural metal fell by 0.1 percent on a monthly basis and is flat relative to a year ago. Nonferrous wire and cable product prices declined 1 percent for the month and are down 3.7 percent from February 2012. Steel mill prices dropped 0.9 percent last month and have declined 9.7 percent on a year-over-year basis. Prices of iron and steel products fell 1.8 percent on a monthly basis and are down 10.8 percent compared to one year ago. Crude energy materials prices rose 2.2 percent in February on a seasonally adjusted basis, which is largely attributable to a 6.3 percent increase in petroleum prices. Overall, the nations wholesale or finished goods prices increased 0.7 percent in February on a seasonally adjusted basis, and are up 1.8 percent from February 2012. Analysis Increased volatility in monthly construction materials prices continues, said Associated Builders and Contractors Chief Economist Anirban Basu. In January, construction materials prices rose 0.7 percent, with nonresidential materials prices rising 0.6 percent. The rise in materials prices in February was even sharper after nearly a year of relatively stability. A number of different factors are at work, stated Basu. Key asset prices are generally on the rise globally; this is particularly apparent given the behavior of U.S. equity markets. Other prices are also on the rise, due in part to accelerating global economic growth and accommodative monetary policy. There is also evidence that nonresidential construction spending is positioned to accelerate, particularly in private construction categories, said Basu. Leading nonresidential construction indicators generally have turned positive and the associated increase in demand for materials appears to be driving prices higher. However, increased volatility is not synonymous with rising prices, Basu said. Production of inputs typically rises as prices rise. This suggests that there may be months later this year during which materials prices fall. But for now, price momentum is clearly to the upside.

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Promotion and new hire at Perry proTech

PERRY proTECH is pleased to announce the addition of David DeToro to our IT/Networking team as General Manager. Dave assumes the duties of Jeff Boate who has been promoted to President of PERRY proTECH corporate office and Barry Clark has been named as CEO. David DeToro is a native of Chicago, Illinois. He is married to his wife Amy of 9 years; a Pediatric Intensive Care Unit Nurse at Cincinnati Childrens Hospital. They have 3 children; Katie - 7, Gianna - 5, and DeTORO Nicholas - 3 months. Dave grew up in the south suburbs of Chicago in Orland Park before attending Valparaiso University in Indiana. He studied Business Administration, focusing on Marketing, while also receiving a minor in English Writing. Being raised in a family of entrepreneurs, Dave started his first company at the age of 17, while a freshman in College. After graduation, he worked largely in the IP/Telephony arena for 7 years for both McLeod USA and MCI/WorldCom. In 2004, he shifted focus from telecommunications and started his second company, Divvy Inc., as a sole proprietor selling advertising and consulting services for the automotive industry. In a short 2 year timeframe, the company went from one employee and roughly $200k in annual sales to a Corporation of 17 reps and over $10M/annual sales. After the decline of General Motors and several other automotive companies in 2008, Dave was forced to reduce the size of the sales force with an ailing US economy before eventually closing the company. In June of 2010, the family made a decision to head to Cincinnati so his wife could pursue a career at Cincinnati Childrens as well as continue her education as a Nurse Practioner by attending Wright State University. Dave joins a PERRY proTECH, IT/Networking team in Sidney, Ohio he has become very familiar with for the past 2 years while holding the position of Territory Manager for EMC Corporation for Ohio. PERRY became his go to partner in Ohio and was quickly recognized as a Top 5 Partner for Ohio Valley. He developed a team first approach with the sales and service channels in the IT Division and was very anxious to join this highly respected company. When asked why he took the position as GM of IT/Networking, Not only was I comfortable with the PERRY team in Sidney, it was a nice fit that I knew a large part of the customer base. With the ability to leverage his industry knowledge and sales management background with the talent of the PERRY staff, this was a great career for Dave. The basic foundation of the company and pride that each employee owner has in their job was something I wanted to be part of. The market opportunity that PERRY has with its nearly 50 years of business makes for an exciting time to help roadmap the company for the next level. Im committed to making that progression take place!

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Elder Care
Is it time to find elder care for your aging parent?
For some, holiday gatherings deliver an unwanted gift: the realization that an aging relative is losing the ability to live independently. When far-flung families come together to celebrate, adult children can be alarmed to discover that mom is forgetting more than she used to, dad is leaving the house in disarray, or auntie is now trembling and shuffling when she walks. No wonder inquiries about elder care services, including nursing homes and assisted living, peak annually just after the winter holidays. The time has come to begin looking into options for long-term care. Its definitely something that we see every year, said Amy Goyer, AARPs family expert. People start doing their homework right after the holidays. Goyer encourages families to avoid jumping to the conclusion that a residential institution like an assisted-living facility is necessary. Some people have a knee-jerk reaction, she said. But a stack of unopened mail could be just a sign of holiday stress, she said, rather than a symptom of inability to care for oneself with proper support. If a loved one is having trouble paying his bills on time, he might just need someone to handle his finances. If he has trouble getting in and out of the bathtub, families should consider having a walk-in shower built; if he isnt eating right, they should consider Meals on Wheels; if the house is messy, they could have a housekeeper visit every week. For some aging relatives, though, it may be time to consider an assisted-living facility or even a nursing home in the most serious circumstances, such as when a relative has a fall and suddenly needs around-theclock care. Inquiries made for senior care providers through one website, SeniorHomes.com, were on average 58 percent higher in the weeks after Christmas than in the weeks leading up to the holiday. Thats according to recent data released by the site, which features and advertizes long-term care providers and connects them with potential residents. The data, collected from 2009 to 2011, show a spike in inquiries following Christmas day and continuing through January. Family members often asked managers for tours of facilities. But they didnt necessarily conclude assisted living or another care option was needed immediately. In fact, says SeniorHomes.com CEO Chris Rodde, the rate of people moving into assisted-living facilities did not increase following the inquiries. Even if mom or dad isnt ready for such a drastic change, families shouldnt wait to make these types of inquiries until after a loved ones mental or physical capacity has diminished. For adult children its important to start asking the questions and to start the conversation with parents and siblings, Rodde said. A lot of people avoid the conversation in the first place until things get really bad. Goyer emphasizes that early on its important to become familiar with local services that can help loved ones live independently in their own homes, and to help keep track of how an aging relative is doing even from far away. Over the phone, ask: What did you do today? How did you get there? Are you feeling comfortable driving? she said. You want to ask about their home, their transportation, health, finances and support system. Ask, Do you feel safe in the house? Are you going to activities? Dealing with a loved ones change in behavior, though, could require just a simple medication adjustment. Sharon AllisonOttey, an internal medicine specialist with training in geriatrics, said people between the ages of 65 and 70 should get full physical exams every year. If this hasnt been done, families should schedule an evaluation with a doctor who specializes in geriatric care. The family should try to accompany their elderly relative to one of the appointments, writing See ELDER CARE, page 9

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TheBusinessJournal

April 2013

Senior care industry analysis 2013 - cost & trends

Senior Care Industry in 2013 at a Glance Thanks to the aging of the baby boomer generation born in the late 1940s and 1950s, the American population is getting older. Between 2010 and 2050, the senior population will swell dramatically. As the boomer population reaches age 65, the senior population is projected to reach 88.5 million well over twice the number of seniors in 2000 and twenty percent of the total population of the United States. 8,000 people will turn 65 every day in 2011. This increasing elderly population has and will necessitate more senior healthcare. In fact, in the late 2000s, there were more than 17,000 providers of home healthcare to 7.6 million people, servicing anything from temporarily illness, to disabilities, to terminal illness. This is a substantial increase from the mere 1,100 providers in place in 1963. The combined annual revenue for these providers is $57.6 billion, up from 38.3 billion in 2003. Industry Background Senior care as an industry picked up steam in the 1960s and 1970s with government activity such Medicare and the advent of the National Institute on Aging, as well as longer life expectancy, which led to more older Americans needing care. In 1965, Medicare provided the elderly with federal money for home care. In 1973, government home health care funding was expanded to benefit younger people as well. And since its enactment, Medicare has been far and away the largest single source of revenue in home health care services, accounting for 37 percent of the total. The rest is accounted for by way of private insurance and out of pocket costs, which made up 22 percent, nineteen percent from medicaid and twenty percent paid for by money from local governments. By the end of the 2000s, a majority of home health care agencies were for-profit companies, reaching 57 percent of overall home health care agencies, and up from just six percent in 1980, when most agencies were not-for-profit or government-run entities. The industry as a whole employs 900,000 people. Because of its importance in the industry, the policies of medicare have been closely linked to the industrys growth over time. Certain changes in the 1980s halted expansion of the industry, as did changes in the 1990s under the Balanced Budget Act. But each time, the industry rebounded relatively shortly after. Additionally, the industry is quite fragmented. The fifty largest companies control less than 25 percent of the total revenue. Because the majority of revenue for the industry comes from Medicare, Medicaid and private insurance, all of which set prices ini the industry, competition between agencies is not on price but reputation, name recognition, quality of care, word of mouth and other referrals from medical professionals. Possible difficulties business owners face in the industry include difficulty finding quality registered nurses and home health aides. As the number of home health care businesses increases, the demand for good employees is high. And although the amount of workers tripled between 1989 and 2004, this was still not enough to feed demand. Registered nurses in particularl are aging, and there are not enough younger nurses to replace them. High turnover and worker retention is another issue franchisees will have to address in this industry, since it can exceed fifty percent, largely because of the low wages and difficult working conditions for aides. Lastly, another obstacle could potentially be changes in medicare. While some companies think See SENIOR CARE, page 9

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area. This is a tremendous opportunity for Ohio Logistics to utilize an existing high bay warehouse in a dynamic market, stated Tim Echemann of Industrial Property Brokers who represented both parties in the lease transaction. This is a good match for the owner of the building, John Graham, as well as Ohio Logistics, he said. Grahams foresight in purchasing the building has allowed him to watch his investment come to light. With Ohio Logistics move into 61,512 SF of the facility, and the recent Tour de Force CRM, Inc leasing of 12,500 SF of office space, the building is now fully leased

(Continued from page 1A)

and they are looking for build to suite opportunities as well as possibly adding on to the building. Ohio Logistics is a provider of warehousing and transportation along with distribution, inventory management and manufacturing support to their customers who require global logistics. This building provides us with a modern, clean facility that is most similar to our other locations, stated Rick Aurand, Human Resource Manager with Ohio Logistics. Aurand said they plan on utilizing the facility shortly after taking possession in mid- March and plan on hiring approximately three employees.

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rectly impacts our quality level of installations, which has lead to our success in the roofing industry. In addition to that, the hard work and dedication of the individual team members culminates, creating a winning recipe, says Mike Cotterman. In 2012 Cotterman & Company received the most prestigious recognition in the commercial roofing industry. Carlisle Syntec, the leading manufacturer of single-ply roofing materials, elected Cotterman to the Perfection Council. Only the top 15 contractors in North America, determined by historical installation quality metrics, were given this recognition. Cotterman also reached the 750 Perfect 10 Hall of Fame Status with Carlisle. Out of 2,700 authorized applicators, only 43 have reached this achievement.

Anniversary

(Continued from page 1A)

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and help our customers with marketing, advertising, and business planning. K&M Tires customer base includes many northwest Ohio companies such as Speck Tire in Bowling Green; Tri County Tire in Oregon; JAM Tire of Toledo; and Sylvania Tire & Wheel. The company began as a two-bay gas station in 1970 selling gas at a price of $0.30

K&M

Duro-Last Roofing recognized Cottermans achievements with the JRB Award, which is based on volume and quality of installations. They also announced Cotterman installed the most Duro-Last Roofing material in the state of Ohio again in 2012. Looking forward into this year, we believe the trend of renovating and retrofitting existing buildings will continue to grow and the new construction projects will remain relatively moderate similar to 2012. This enables us to offer cost effective energy savings roofing solutions for businesses looking to remain in their current facilities, says Andy Cotterman Cotterman & Company is eager to earn the opportunity on your next roofing project and add you to the list of satisfied customers.

(Continued from page 1A) a gallon. Now K&M Tire distributes more than 20 brands of passenger and light truck tires, seven brands of commercial truck tires, and eight brands of farm and utility tires, according to the company. Some of the brands include Cooper Tires, Dunlop, Firestone, GoodYear, and Michelin. We only sell tires, from small lawn mower tires to large farm tires, Langhals stated.

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the new Patient Protection and Affordable Health Care Act of 2010 will ultimately help the home health care industry, there could be unforeseen consequences as the act is put into place. Home Health Care

Senior care Elder care

(Continued from page 6A) common being private nursing, administering antibiotics and assisting in rehabilitation. Heart disease, diabetes and cerebral vascular disease are the most common ailments resulting in home care, and about seventy percent of in home patients are 65 or older. Interim Healthcare is a franchise working in the medical sphere. Non-medical assistance includes aides helping seniors with chores, preparing meals, taking medication, helping with bathing and general companionship. As seniors age, non-medical care is often a step between self-sufficiency and family care and more serious medical care. FirstLight HomeCare and Careminders are two franchises that focus on non-medical home senior care. One advantage of being part of a large franchise in this industry is access to increased marketing that might not be available to a smaller business, which is particularly important in senior care where name recognition counts. Although it is currently far more common for a family member to take care of a senior, rather than a nursing home or home health care, as the population ages dramatically it will be far more difficult and the burden will be more onerous on younger family members. This will lead to an increased need for both nursing homes and home health care. In 1990, there were 11 possible caregivers for every family member needing care. But by 2050 it is projected this ratio will reach four to one. In 2006, 23 percent of Americans provided care for someone over fifty, and it is predicted that nine million seniors will require long-term care in the foreseeable future. This along with the relatively high cost of nursing homes and hospitals has led to a boon in the home health care industry. Home health care can be less stressful and more convenient for seniors, as well as more affordable. In addition, in a survey, 89 percent of seniors expressed a desire to remain in their homes as long as physically possible, which would provide more future home health care business. In addition, medical advances will make more and more patients who would have otherwise had to stay in a hospital or nursing home able to stay at home in a familiar setting. By 2050, it is projected that home health care services will impact 27 million people. In the fourth quarter of 2010, home health care revenues had risen 4.1 percent over those in the same quarter the year before, and it is predicted to grow by an annual compounded rate of seven percent between 2010 and 2015. With a rapidly growing senior population, there is no better time to be a part of the burgeoning senior care industry.

Home health care is the primary aspect of the senior care industry in which franchises exist. This can involve either medical care or non-medical care, or some combination. Medical care provides a variety of medical services for patients, with some of the most

(Continued from page 6A)

down their concerns ahead of time. The doctor should cross-check medications to make sure they are not liable to interfere with each other. You may think your mom has dementia, Allison-Ottey said, but maybe medications are crossing each other and she just isnt sleeping well. Families may want to consider a geriatric assessment, which is a head-to-toe, two-hour exam performed by a geriatrician. Doctors will evaluate the heart, lungs, ears, eyes, memory, and ability to walk, among other things. Most of all, Allison-Ottey said, the aging parent needs to be part of the decision-making process. The elderly still want to have a sense of independence, she said. It is still their lives. Its important for adult children to ask their parents what they want par-

ticularly in terms of whether they will want to stay in their own home, whether they want help around the house, or whether they will want to live in a nursing home when conditions require it while they are still able to give insight. When adult children are not sure what their parents want, they tend to make a lot of decisions for them later on, which can result in a significant amount of guilt. It is very difficult to see your parent or your loved one who was strong, vibrant, and healthy to all the sudden be weak, ill, or dependent, Allison-Ottey said. I do suggest that families get support. Understand that you are not superman or superwoman. Understand the limitations for your family financial limitations, social limitations, and the amount of time you can devote to care.

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Mercer County and Grand Lake Joint Township hospitals join HIE West Central Ohio wired through CliniSync
Both sides of the Grand Lake in West Central Ohio now have hospitals wired to electronically transmit health records and information throughout the region and state. Mercer County Community Hospital in Coldwater and Grand Lake Health Systems Joint Township District Memorial Hospital in St. Marys now are live on the statewide health information exchange CliniSync. They join other members of the West Central Health Information Exchange in committing to the regional and statewide sharing of electronic health records to improve patient care, including St. Ritas Medical Center in Lima and Van Wert County Hospital in Van Wert. Lima Memorial Hospital also joined and is in the implementation stages. Physicians in the area are directly receiving lab reports, test results and medical documents from the hospitals to their offices, making the sharing of information quicker and easier than traditional paper records. This is the first step in a growing process that will allow hospitals, physicians, labs and others involved in a patients care to exchange patient health information, no matter where they are located. QUOTE: George C. Boyles, Vice President of Finance and Chief Financial Officer. Through the participation in the statewide HIE program, medical care providers will be able to access specific patient information to allow for enhanced and efficient patient treatment care. We, at Mercer Health, are excited about continuing to utilize technology to help assist with patient care. Securing innovative computer solutions, and working with physicians, other medical professionals, and nursing staff to care for the patient is essential to continued quality patient care. Mercer County Community Hospital is a part of the Mercer Health organization serving Mercer County and the surround- prehensive care hospital serving Auglaize, ing areas. Mercer Health provides a con- Mercer and surrounding counties. tinuum of healthcare services to the area The Grand Lake Health System is comthrough prevention, education, diagnostic, prised of Joint Township District Memoinpatient, home care, medical equipment, rial Hospital, Grand Lake Home Health, physician and other services. Additional Grand Lake Hospice and numerous physiinformation about Mercer Health and its cian practices and Centers of Excellence. services and eight locations throughout Additional information can be found at Mercer County can be found at www.mer- grandlakehealth.org. cer-health.com. To date, 70 hospitals across Ohio have Being part of a statewide health infor- contracted for CliniSyncs services and 21 mation exchange (HIE) is the next step in are live. More than 1,000 physicians also providing quality care for our patients, signed up to receive exchange services, said Lori Miller, Chief Information Officer with close to 500 already getting results of the Grand Lake Health System. HIE and reports from their local hospitals. facilitates continuity of care by support- Eventually, CliniSync participants will be ing the efforts of DAYTON physicians with timely able9:21 to share information statewide so docFerguson BOL .25s.ai 1 11/14/12 AM and efficient access to medical informa- tors will have a complete picture of a pation from several facilities. HIE is a great tients health from other providers. While tool to assist providers so their time can be some health systems in Ohio share data spent focusing on the care of the patient. and information within their own faciliJoint Township District Memorial ties, CliniSync allows the sharing of inforHospital is the anchor of the Grand Lake mation from providers outside their own Health System and is a full-service, comSee JOIN HIE, page 11

Hospitals

More Locations in Your Community

Mercer County Community Hospital 800 W. Main St., Coldwater419-678-2341 Community Medical Center/Doctors Urgent Care 950 S. Main St., Celina419-586-1611 Home Care and Medical Equipment/ Rehabilitation Services 1107 N. Main St., Celina 419-584-0143 Mercer Health Family Care Celina 801 Pro Dr., Celina 419-586-3113 Mercer Medical Group 909 E. Wayne St., Celina 419-586-1863 Mercer Health Family Care Coldwater 809 W. Main St., Coldwater419-678-2381 OB/GYN Satellite OfficeFt. Recovery 1830 Union City Rd., Ft. Recovery 419-375-2939 OB/GYN Satellite Office St. Henry 442 Stachler Rd., St. Henry 419-678-2246

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National Health Care Decisions Day is April 16

National Health Care Decisions Day will be celebrated across the country on April 16 to inspire, educate & empower providers and the public about the importance of advance care planning. National Health Care Decisions Day is an initiative to encourage patients to express their wishes regarding health care and for providers and facilities to respect those wishes, whatever they may be. Advance directives are documents that patients complete to direct their medical care when they are unable to communicate their own wishes due to a medical condition. In Ohio, do not resuscitate orders, living wills, organ donation and durable powers of attorney are advance directives that are authorized by state law. Many Ohio organizations, including hospitals, will recognize National Health Care Decision day with educational seminars and informational sessions to ensure adults decision-making power over their own lives. Hospitals can lead by example by encouraging everyone in their facility to execute their own advance directives before April 16, so they will be in the best position to help others. This is a great opportunity to spread the word and highlight existing resources on advance directives.

Welcome to a whole new St. Ritas Emergency Department.

Join HIE
(Continued from page 10)

health system. Dan Paoletti, CEO of the Ohio Health Information Partnership, which manages CliniSync, said West Central Ohio leads in the way in community-based collaboration. The region jump started CliniSync when St. Ritas went live in December 2010. When we first started to implement CliniSync, West Central Ohio stepped right up to begin to fulfill a vision of interoperability and exchange that they had already envisioned, Paoletti said. These hospitals have worked hand-in-hand with our staff to go through a new technological process that will result in more timely and coordinated care for patients in their communities. Our thanks to Mercer County and Grand Lake for making that vision a reality for the entire region. A federal grant of $14.8 million from the Office of the National Coordinator for HIT to the Ohio Health Information Partnership enabled the creation of the CliniSync technological structure

and initial implementation. In addition, more than 6,500 Ohio primary care physicians signed up to use electronic health records through similar grant funding last year. The movement toward exchanging health records is occurring in states throughout the nation. In Ohio, physicians can receive free software that allows them to send direct, encrypted emails, to manage referrals, and to receive both transcribed reports and test results. Information being exchanged includes: registration information (admission notice, discharge notice, transfer notice), transcriptions (clinical and textual, discharge summaries, cardiology reports), and lab results (general chemistry, microbiology, pathology and blood bank.) For more information about the CliniSync HIE, go to CliniSync FAQs. For success stories on video about electronic health records and CliniSync, go to our Resources section.

RE
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April 2013

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11

Manufacturing

Manufacturing activity gains steam in March

U.S. manufacturing growth quickened in March and the pace of hiring increased, suggesting the sector will contribute to stronger overall U.S. growth in the first quarter, an industry survey showed on Thursday. Financial data firm Markit said its flash, or preliminary U.S. Manufacturing Purchasing Managers Index increased to 54.9 this month from 54.3 in February. A reading above 50 indicates expansion. Manufacturers stepped up hiring this month, driving the employment sub-index to 54.6 from 53.5 and rounding out the best three-month stretch for hiring in the sector since early last year, according to Markit chief economist Chris Williamson. With manufacturing a reliable bellwether of the rest of the economy, gross domestic product will have risen at a much improved rate over the first three months of 2013, he said. The U.S. economy grew at a 0.1% rate in the fourth quarter of 2012, but economists are forecasting a first-quarter growth rate of about 2%. The manufacturing output index eased to 56.8 in March from 57.3 the prior month, but the pace of incoming orders from domestic customers increased, while overseas demand grew slightly after contracting in February. The flash reading is based on replies from about 85% of the U.S. manufacturers surveyed. Markits final reading will be released on the first business day of the following month.

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Bunge
Bunge Limited, founded in 1818, is a leading agribusiness and food company with integrated operations that circle the globe. Bunge employs over 32,000 employees at over 400 facilities in over 30 countries. Bunges agribusiness operations process and transport tens of millions of tons of commodities every year. The facility at 234 South Jefferson street is a soybean processing plant originally built in 1909. The business purchases soybeans which are processed to make soybean oil and meal. The oil is sent to the companys other locations for further processing into various food products. The meal is sold to customers both locally and globally. The Delphos facility has been making soybean oil and meal since the 1940s. The Delphos facility employs 53 people. Office hours are 8am to 4:30 p.m., with grain receiving hours of 7 a.m. to 7 p.m.. Tony Matney is the Facility Manager. For more information about the company, visit the companys website at : www.bunge.com

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Human-robot interaction can be improved with teamwork, study finds

As more U.S. manufacturers embrace the principles of lean enterprise, there is a growing acceptance of the role that automation can have in the industry. According to Wired, research conducted by the Massachusetts Institute of Technology has shown that while heavy-duty robots are usually confined to a separate part of the manufacturing facility, increased interaction between human and mechanical workers can increase productivity. With 225,000 robots now in active service in the U.S., the study, which concentrated on a practice known as cross-training,placed robots in a workplace environment and allowed workers to carry out simple tasks in tandem with the machine. This technique has been used for many years in the military, with team members encouraged to engage in reward motivator scenarios with their teammates, thereby increasing levels of unspoken communication and coordination. While the battlefield and the assembly line may have different expectations of teamwork, the MIT research took the concept and used it to demonstrate how human to robot interaction could be used in simple tasks. The task involved the human worker placing screws in one of three positions, with the robot then instructed to drill them into place. With the workers told to swap and change the position of the screws, the research team concluded that the robot would need to adjust quickly to a variety of challenges, especially as there were occasions when more than one screw was used. Thirty-six human volunteers were involved in the study, which was originally conducted in a virtual reality scenario. Fifty percent of them merely encouraged the robot with positive comments, while the others swapped roles with the machine halfway through. The test was then taken into a realworld environment and repeated, with an emphasis on quality management in manufacturing.. The results showed that robot-human sychronicity was 71 percent higher in those that had swapped roles while idle time the amount of time spent waiting for a co-worker

to complete a task dropped by 41 percent. The study also showed that the robot was able to anticipate what its human partner would do in other words the machine was able to predict what it should be doing and when. People arent robots, they dont do things the same way every single time, said Julie Shah, lead researcher and an assistant professor of aeronautics and astronautics at MIT. And so there is a mismatch between the way we program robots to perform tasks in exactly the same way each time and what we need them to do if they are going to work in concert with people.

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April 2013 TheBusinessJournal 13

Business Banking Top five retail banking trends for 2013

Retail banks, in the coming year, will focus on managing the multi-channel impact of mobile banking, downsizing branches and selective investing in branch technology. The tectonic plates underlying retail banking are shifting. In 2012 we have already seen various versions of the Branch of the Future, the increasing sophistication demanded by mobile and tablet customers, experimentation with new revenue streams, refocusing efforts on higher-profit customer segments such as the mass affluent and banking platforms on Facebook. All these trends are fundamentally changing the role of the bank and transforming retail delivery. Over the next year, we will see dramatic changes in both how customers interact with banks and how this impacts revenue streams in retail banking. Here are the five top trends retail banking executives should keep their eye on in 2013: Multi-Channel Impact of Mobile/Online. It is clear that mobile and online banking is continuing to grow. But what does that mean for the customers relationship with the bank across different channels? Most banks do not yet know how usage of mobile and online services impacts retention, cross sell and overall customer value. We have seen that the impact on these metrics varies significantly across services and features and it is important for banks to know which to focus on. Branch staffing levels and operating hours also need to evolve with increased non-branch banking. Online and mobile can help reduce cost in the physical channel but banks need to be careful not to hurt the customer experience. Making Money from Mobile. Most banks are not yet charging for mobile or online banking services but this is starting to change. BB&T and U.S. Bank now both charge 50 cents per check for mobile check deposit. Charging fees for mobile and online service could be an important source of fee revenue for banks. The risk is that it could cause significant backlash and customer attrition. It will be easier for banks to charge fees for entirely new services than to add fees to services customers are used to receiving for free. Banks will also need to test different fee levels to determine which work best. Finally, it is critical to identify which customers should be exempt from these fees to avoid losing the most valuable customers. Smaller Branches with Innovative Approaches to Staffing. Though branches will not go away completely, they will likely get smaller. Customers will continue to visit the branch to open accounts or discuss more complex products such as investments or mortgages. An extensive branch network provides the convenience many customers demand. However, many routine transactions are moving to other channels and branch cost is higher than it needs to be. Branches will get smaller in the future with more in-store branches or caf style branches. The key will be to know where to put these smaller branches and which locations warrant a full-scale branch. The Economist recently dedicated a special report to the intricacies of this new shift and its adoption on a worldwide scale. Banks will need to understand how demographics, the competitive environment, and the adoption of mobile/online banking in different geographies influence the optimal number of branches and the optimal mix of branch types. Similarly as customers continue moving more routine transactions to the online and mobile channels, the role of the branch staff will be even more focused on building relationships, growing sales and helping customers resolve more difficult problems. It does not make sense in this model to have branch staff focus exclusively on particular tasks, such as the traditional teller role. Branch staff will, if anything, shrink over time, so banks will need to do more with less. This will require hiring people who have a broader variety of skills and offering more training to help existing staff learn new skills. Banks should also work to develop new technology platforms to help branch staff have these broader and more complex discussions with customers. Bank of America has been one of the leaders in this area, with a new flagship concept that features advisers walking around the branch and having conversations with clients in more open spaces rather than in the traditional layout. Demanding ROI from Online/Social Media. Ad dollars will continue to shift to online and social media, and these channels will continue to grow in importance for banks. For instance, Chase and Bank of America now offer support services through Twitter, and other banks increasingly leverage Facebook as an engagement tool. At the same time, companies See TRENDS, page 15

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April 2013

Economists warn Fed risks losing control

Four economists, including a former Federal Reserve governor who has co-written research with Chairman Ben S. Bernanke, warned that losses from the central banks more than $3 trillion balance sheet could lead to the Fed losing control of monetary policy. The combination of a massively expanded central bank balance sheet and an unsustainable public debt trajectory is a mix that has the potential to substantially reduce the flexibility of monetary policy, the economists write. This mix could induce a bias toward slower exit or easier policy, and be seen as the first step toward fiscal dominance. It could thereby be the cause of longer-term inflation expectations and raise the risk of inflation overall. The conclusion from economists, including Frederic Mishkin, a governor at the central bank from 2006 to 2008 and an academic collaborator with Bernanke before that, will be presented at the U.S. Monetary Policy Forum in New York. Their paper serves as a high-profile warning to an audience including Boston Fed President Eric Rosengren, Fed Governor Jerome Powell and St. Louis Fed President James Bullard. The central bank is currently purchasing $85 billion a month of Treasuries and mortgage-backed securities, following two previous rounds totaling $2.3 trillion, in an effort to lower an unemployment rate stuck near 7.9 percent. Once the economy strengthens, the central bank plans to unwind its balance sheet by raising interest rates and selling many of the assets acquired over the past four years. The economists say that the Fed could incur substantial losses that might occur when U.S. deficits are still high and Congress and the White House have been unable to put fiscal policy on a sustainable trajectory. This unfavorable fiscal arithmetic might tend to push the Fed toward delaying its exit from the extraordinary easing measures it has taken in recent years; it could even affect decisions this year about how much further to expand the Feds holdings of longer-term government securities, the authors said. The Fed could cut its effective drain on the Treasury significantly by putting off asset sales and delaying policy rate increases. But such a response would presumably feed rising inflation expectations. The U.S. Monetary Policy Forum is sponsored by the Initiative on Global Markets at the University of Chicago Booth School of Business. In addition to Mishkin, now an economist at Columbia University, the authors of the paper are David Greenlaw, chief U.S. fixed income economist for Morgan Stanley; James D. Hamilton, a professor of economics at the University of California in San Diego; Peter Hooper, chief economist at Deutsche Bank Securities Inc. Hooper and Greenlaw are both former Fed economists, while Hamiltons research on bond yields has been cited by Bernanke as justification for the Feds policies. The Federal Reserve recently released a paper showing that the income it has traditionally earned from its policies could disappear for years as interest rates rise. After paying its expenses, the central bank returns any surplus to Treasury to help fund the expenses of the U.S. government. In 2012, the Fed returned $88.9 billion to taxpayers. The Congressional Budget Office forecasts that the government will run deficits averaging nearly $700 billion from 2014 to 2023 in its baseline scenario. The bottom line is that no matter how strong the commitment of a central bank to an inflation target, fiscal dominance can override it, the authors of todays paper warned. Without long-run fiscal sustainability, no central bank will be able to keep inflation low and stable. Fiscal dominance refers to a situation in which a central bank is forced to purchase government debt and finance deficits through inflation. If the central bank does not do this, interest rates will rise and the economy will contract and the government could even default, leading to a crisis that would cause an even worse contraction, the authors say. The central bank will in effect have little choice, they write.

Trends

(Continued from page 14)

will look to better understand the return on investment (ROI) of these investments and will choose carefully how they invest going forward. With many online and social media vehicles such as Google and Facebook, advertisements can be turned on in a subset of markets allowing a comparison to control markets that do not receive the ads. We have found that the ROI varies significantly across different vehicles, products featured, and messages or keywords. Banks that know the ROI of different investments will be able to significantly improve the profitability of social and online advertising by focusing spend where it is most effective. Selective Investments in Branch Technology. Banks have made substantial investments in branch technology, such as adding remote check imaging at ATMs. These types of investments will continue, and the latest example is video ATMs. BBVA recently began launching its ABIL concept that features a touch-friendly interface and a virtual teller. Too often

though, we find that banks make uniform investments across all branches. This is a waste of precious resources; most new technologies will work well in some branches but provide little benefit in others. Any major investment should be tested in a subset of branches first, to determine what types of branches would actually benefit. As these trends drive transformations in retail banking it becomes increasingly necessary to innovate while minimizing the risk involved in innovation. We have seen leaders such as TD, PNC, SunTrust, and others respond to these emerging trends by rapidly testing new ideas with a small set of customers, branches or employees. Such scientific tests have helped them respond to these changes effectively and build a competitive advantage in offering cutting-edge products and services. Banks that are able to rapidly and robustly predict what customers want will have a successful 2013.

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Superior Federal Credit Union promotes Swinehart

Superior Federal Credit Union is pleased to announce the promotion of Doug Swinehart as their new Director of Mortgage Loan Operations. Doug has more than 35 years of experience in banking, mortgage lending, and mortgage underwriting. In his new position, he will be managing all mortgage processing and underwriting operations for Superior and its partner credit unions. Doug graduated from Ohio Northern University with a BA in History. He is married and

lives in Lima with his wife, Krista. Superior Federal Credit Union is a full service financial cooperative serving members in West Central Ohio. Superior FCU currently serves over 49,000 members with assets exceeding $425 million. The credit union also provides consumer and mortgage loans, checking and savings accounts, insurance and brokerage services, and small business services and loans.

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TheBusinessJournal

April 2013