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Research and Development Credits Within the Construction Industry

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Nicholas L. Shires, CPA , Abby K. Sweers, CPA, Dannible & McKee, LLP

When taxpayers think of research and development (or R&D), most picture scientists in long white coats mixing liquids in a laboratory. However, the meaning of research and development in the tax world goes far beyond that. While the construction industry may not be the first that comes to mind when thinking about R&D, it certainly contains its fair share of qualified projects. For construction companies that take advantage of these R&D projects, changes are on the way.

Originally introduced as a temporary credit in the Economic Recovery Tax Act of 1981 (ERTA), the R&D credit was made permanent in 2015 with the passing of the Protecting Americans from Tax Hikes (PATH) Act. For construction companies that qualify for the R&D credit, thousands of dollars in credits can be claimed on the associated income tax returns, depending on the level of qualified expenses. While the R&D credit has been around for several years, effective for tax years beginning after December 31, 2021, as part of the Tax Cuts and Jobs Act (TCJA) of 2017, the treatment of qualifying research expenses used in the credit are undergoing a major change.

Generally, for projects to qualify for the R&D credit, they must be technological in nature, and their application must be intended for use in developing a new or improved business component or process for the taxpayer. In addition, substantially all the activities of the research must be elements of a process of experimentation relating to a new or improved function, performance, reliability or quality. Within the construction industry, these research projects could include developing new processes that would reduce the time spent on site, creating new materials for use in projects with unique conditions, designing or improving tools and equipment that would lead to improved job efficiency and many more. For example, say a contractor is working on a road in an area that endures heavy snowfall. If they were to develop a new mix of materials (asphalt, concretes, etc.) that would experience less wear and tear from the snow, that would be considered R&D.

The qualifying research expenses can be broken down into two categories: (1) in-house research expenses and (2) contract research expenses. The in-house research expenses include wages paid to an employee for engaging in qualified research, amounts paid for materials and supplies used in the conduct of qualified research and any amounts paid to another person for the right to use a computer in the conduct of qualified research. Contract research expenses include 65 percent of any amount paid to another person, other than an employee, for qualified research.

As previously mentioned, the way that these R&D expenses are to be treated by the taxpayer is altered for tax years beginning after December 31, 2021. The TJCA amended Internal Revenue Code (IRC) § 174, which outlines the treatment of research and experimental expenditures. Previously, taxpayers were allowed to immediately deduct their qualifying research expenses in the year they were paid or incurred. Based on the amendments to IRC § 174 included in the TCJA, taxpayers must now capitalize these expenses and amortize them over five years.

For example, assume a taxpayer has $200,000 of qualified research expenses for the 2022 tax year. Prior to the TCJA amendments, the taxpayer could expense all $200,000 of these expenses in the year they were incurred. Under the new rules, the taxpayer must capitalize these expenses and would be entitled to an amortization expense of $20,000; $200,000 divided by 5 years and applying a midpoint to amortization to cut the first full year expense in half, as specifically stated in the code section.

Although these changes may appear to make the credit less lucrative, this should not deter taxpayers from pursuing the credit as it’s still very beneficial to those that qualify. The Internal Revenue Service has been known to look further into these credits when claimed by taxpayers, so it is important to contact your tax professional early to ensure that proper substantiation is being maintained throughout the process of each qualifying project.

Nicholas L. Shires, CPA, is the partner-in-charge of tax services and Abby K. Sweers, CPA, is a tax manager with Dannible & McKee, LLP, a public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, New York.  The firm has specialized in providing tax, audit, accounting and advisory services since its inception in 1978.  For more information on this topic, you may contact them at (315) 472-9127 or visit online at www.dmcpas.com.

A-Frame Ladders Vs Platform Ladders

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Wael Khalil, CSP  Safety Representative Lovell Safety Management Co., LLC

Have you noticed in recent years that more general contractors are requiring platform ladders instead of standard A-frame ladders? As a matter of fact, some general contractors (GCs) will not allow ladder usage on their jobsite, period. On some construction sites, A-frame ladders have become a tool of last resort when performing work at an elevation. Most GCs would prefer that employees use manlifts, scissor lifts, boom lifts or other elevated work platforms rather than ladders. The main reasoning behind this philosophy is to eliminate a primary source of costly fall injuries.

FALLS CONTINUE TO BE THE LEADING CAUSE OF DEATH AND SEVERE INJURY IN CONSTRUCTION. In 2020, there were 351 fatal falls to a lower level out of 1,008 construction fatalities (BLS data). A 2014 study published by the Centers for Disease Control and Prevention (CDC) cited ladders as being a leading cause of workplace injuries. According to the study, an estimated 81% of construction-related falls treated in U.S. emergency rooms involved a ladder. The most common ladders used on construction sites to perform work are A-frame ladders. When these ladders are used in accordance with required safety work practices dictated by manufacturers and regulating bodies, they can be a very useful and safe piece of equipment. Unfortunately, A-frame ladders are misused more often than we would like to admit.

Most injuries associated with A-frame ladders occur when employees climb higher than the 3rd step from the top, when overreaching to the side of the ladder, missing or slipping off the bottom step/rung, and using a worn or damaged ladder. Many of these hazards can be significantly minimized by using platform ladders instead of standard A-frame ladders.

On a platform ladder, you are typically standing on a 1’x1.5’ (or larger) platform, not a 3” ladder rung. This provides the use of a firmer and more stable surface to stand on, which minimizes fatigue and subsequently slipping off ladder rungs. The elimination of the ladder cap and second rung eliminates the potential hazard of climbing too high on the ladder. In addition, the fact that the user is standing firmly in the center within the framing of the ladder, the potential of falls due to reaching to the sides of the ladder is minimized.

 

While platform ladders will not eliminate all ladder fall hazards, they can be another tool that can significantly help minimize the potential for fall-related injuries when used properly. As employers, we still need to practice the fundamentals of hazard prevention through steps outlined in the same 2014 CDC Article:

1) plan the work to reduce or eliminate the need for using ladders by apply­ing safety-in-design and constructability prin­ciples to finish as much of the work as possible on the ground;

2) provide alternative, safer equipment for extended work at elevation, such as aerial lifts, supported scaffolds, or mast climbing work platforms;

3) provide properly selected and thoroughly inspected ladders, that are well-matched to employee weight, task, and location;

4) when applicable, provide proper accessories to supplement safe ladder use; and

5) provide adequate ladder safety information and training for employees.

Familiarity and compliance with the provisions of safety regulations, such as recognizing ladder types and conditions, and using ladder positioning and other safe ladder practices, are crucial to reducing injuries from ladder falls.

LSM Group Members Can Contact Their Local LSM Safety Representative for Further Assistance Regarding Proper Ladder Selection or Ladder Alternatives.”

Building an Effective Job Site Safety Program

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Paul Coderre, Vice President of Risk Management Services, OneGroup

If you’re a contractor, your job sites present the most consistent and, in most cases, the greatest potential for employee, subcontractor and visitor injuries. While your shop, yard and office can generate occasional accidents, most injuries occur on the job site. The reason isn’t mysterious – your job sites carry the greatest risks and hazards. For the most part, those risks and hazards are known and recognized by site superintendents, foremen, and workers.

So, why do we still have incidents and injuries if most of the hazards are known? It comes down to the level of risk that you, and in turn your supers and employees, are willing to accept in order to get the job done. Other than asteroid strikes, earthquakes, and locust swarms, if we recognize something as a hazard, we can reduce or eliminate the risk of an injury. Now that you’ve rolled your eyes, let me say that I agree with you. If we want to get anything done; on a construction site, or getting to work, or walking across the street, we must accept a certain level of risk. We can’t escape risk; it is inherent to life.

However, the level of risk we accept is not an all-or-nothing proposition. In construction, deciding the level of risk we will accept is a dynamic part of our decision-making process. As business leaders, you make those decisions. If your job requires an excavation, there is risk associated with that part of the job. Your risk acceptance decision could range from high-risk (excavation without a trench box or cut-back) to low or moderate risk, in which you apply controls to minimize the potential for collapse or cave-in. The accident and injury results that your organization faces are an outcome of your risk mitigation decisions.

But how do we keep people on our job sites from taking decision making into their own hands? We are all familiar with the employee who works on the roof without a harness and lanyard; or the one that operates a saw without the guard; or the one that uses the unsteady scaffold, on the brink of falling over. That’s where we come back to the fact that this is your company. You decide the level of risk that your company is going to accept. The trick is getting that message out and making sure your decisions are followed.

Easy job site safety fixes can be tempting – do some inspections, hold a couple toolbox talks and – boom – your job sites are safe. Unfortunately, job site safety is more involved than that. If you leave the decisions up to your employees without any guidance, then your job site and your results are uncontrolled. The level of risk being accepted is being left to the person you hired yesterday.

Here are the key elements of an Effective Job Site Safety Program:

  • Commitment
  • Understanding
  • Communication
  • Accountability

Consistently applying these elements of risk management to your organization will result in a risk level that you have decided is acceptable.

Commitment: Do your site supervisors manage the risk on your site (to your expectations), or do they go through the motions? I often go into organizations as a safety consultant, and am handed a three-ring binder, and am told, “This is our safety program.” It typically requires the supers to hold daily toolbox talks, document their safety inspections, hold workers accountable for everything from wearing hard hats to lifting with their legs, and more. The jobsite usually engages in some variant of the program described, but very rarely do they enforce every step of that program.

When you develop your safety program, make sure it is your program. We put together program templates for companies all the time. Each time we put together a program template for a company, we tell the owner to go through the program and make it their own; eliminate the things that don’t apply to their operations and even more importantly, eliminate or modify the things they do not intend to do. Once the program is built to accommodate an acceptable level of risk, commit to it. Make that program the rule by which you, your supervisors and your employees will live by. This is by far the most important aspect of keeping job sites safe.

Understanding: After building your safety program, you must make sure that everyone in the organization (particularly your managers and supervisors) understand your expectations. They should know, and be able to apply, the protocols you established in the plan without having to reference it (because it’s at the office or in the trailer, not out on the job).

If you have certain requirements for inspections or training or PPE, the supervisors should know the requirements and why they are in place. They must also know your level of commitment to those requirements. Only then will they understand that they must maintain that acceptable level of risk on your site, because that level of risk will yield the results you are looking for. And only then will your supervisors understand the need for them to administer those protocols over the job.

With the understanding built among the supervisors, they will also extend that understanding to the employees. Again, if the employee group doesn’t understand the expectations, they can’t be expected to work within them. Building this understanding takes both continuous training (upon hire and periodically during the project) and constant reinforcement by the supervisors – which brings us to our next element.

Communication: Risk management is a very broad discipline, particularly in construction. Minimizing the possibility of an accident or injury can include everything from health exposures (i.e., silica), to mechanical (i.e., power tools), to electrical (i.e., arc flash), to falls (i.e., ladders and scaffold) and many other risks. We cannot expect employees to intuitively know or understand all our expectations. Therefore, we must commit to continuous communication of those expectations as the demands arise. If a job involves work from elevations, then we must build understanding in those risks. If it involves a chemical exposure, then that must be trained (establish the expectation) and reinforced with continuous reminders.

Much the same as establishing the expectations for production results, your supervisors must continuously be present to build understanding of the safety protocols, and to provide appropriate reinforcement to workers based on observation. The term “reinforcement” brings us to our next element.

Accountability: The term accountability has developed a negative slant in recent years. Holding your staff accountable is really just making sure they are operating to your expectations, which isn’t a bad thing. Accountability, driven by the process of providing feedback and reinforcement to people, is the most important way to make sure they understand what you desire for your company and for their safety. Holding someone accountable could mean providing positive feedback or acknowledging that an individual (or group) executed their jobs successfully. On the other side, accountability can also mean providing feedback if the group did not perform as expected, requiring you to restate your expectations or provide additional education or training on an issue that was missed. If your expectations continuously go unmet, you can make risk-based decisions as you find appropriate.

However, you look at it, holding people accountable and providing feedback is the best way to ensure that your expectations (safety program) are being followed. Don’t shy away from routinely providing feedback.

Summary

The bottom line is that job site safety isn’t rocket science (unless you’re building a launch pad). Effective job site safety is based on deciding what you are trying to get done and the level of risk that you are willing to accept to do it (commitment), teaching your people about your expectations (understanding), continuously reinforcing those expectations (communication), and letting people know whether or not they are meeting those expectations.

Nothing will be as effective as creating a thorough and realistic safety plan and making sure it is enforced at all times. For those just getting started on Building a Job Site Safety Program, here are few items:

  • Get a Safety Program Template
  • Train your employees
  • Conduct site inspections
  • Do accident investigations, and
  • Maintain the appropriate documentation.

This is a much shorter list of things to do, you’ll notice that the title was also shortened by taking out the work “Effective.” The only way to have an effective job site safety program is to take a comprehensive approach and follow through with it.

For more information, please contact Paul Coderre, Vice President of Risk Management Services at PCoderre@OneGroup.com.

MAJOR CHANGES COMING REGARDING CERTIFICATION AS A VETERAN OWNED SMALL BUSINESS (“VOSB”) AND SERVICE-DISABLED VETERAN OWNED SMALL BUSINESS (“SDVOSB”)

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Diana Plue, Esq. Sheats & Bailey, PLLC

The United States government has promoted veteran owned businesses as essential for the U.S. economy.  Each year the federal government and NYS awards a portion of contracting dollars on federal projects to certified veteran and service-disabled veteran owned small businesses.

The federal government had two programs that provided federal agencies authority to set aside government contracts for exclusive competition among veteran owned small businesses.  Those programs were 1) A self-certification program under the Federal System for Award Management (SAM.gov) that gave access to non-VA government contracts set aside exclusively for SDVOSBs and VOSBs; and 2) the Veterans First Contracting Program, which required VOSBs and SDVOSBs, who wanted to bid on VA government contracts set aside for veteran owned businesses, to be certified by the VA’s Center for Verification and Evaluation (“CVE”).   

As of January 1, 2023, there will no longer be two separate programs. There will no longer be a self-certification program under the Federal System for Award Management and the CVE will no longer be certifying businesses as VOSB or SDVOSB.  Instead, starting January 1, 2023, all veteran owned small businesses will be required to apply for and be certified as a VOSB or SDVOSB by the Small Business Administration (“SBA”).

What does this mean for businesses currently certified by the CVE and for businesses currently self-certified? For businesses currently certified by the CVE they can continue to bid on VA and other government veteran set aside contracts until the end of their three-year approval term, at which time they would then need to recertify with the SBA. 

A self-certified VOSB or SDVOSB must apply for certification with the SBA by December 31, 2023. A self-certified SDVOSB that applies for certification with the SBA within this period may continue to compete for non-VA veteran set-aside contracts until the SBA has acted upon the application for certification. 

To be certified by SBA as a SDVOSB or VOSB the following criteria must be met:

  1. At least 51% ownership by one or more veterans or service-disabled veterans.
  2. The service-disabled veteran owners must have a service-connected disability.
  3. Veteran or service-disabled veteran ownership must be real, substantial, and continuous. The Veteran or Service-disabled veteran owners must have the authority to independently control the day-to-day operations of the business and make long-term decisions for the business and must run the business.
  4. Must be a small business according to SBA’s size standards.
  5. The veteran or service-disabled veteran owners must share in the profits equal to their ownership interest.
  6. The veteran or service-disabled veteran owner must hold the highest officer position in the company.

In addition to Federal SDVOSB certification a business can also apply for New York State SDVOSB certification. NYS has its own SDVOSB program ran by the Office of General Services.  NYS has legislated that 6% of state contracts be directed to NYS certified SDVOSB companies. The requirements for certification under the NYS SDVOSB program are similar to the Federal Program requirements but there are some differences as follows: 1) NYS defines small business as having 300 or less employees; 2) NYS requires the SDVOSB be located within NYS or have significant business presence in NYS; and 3) NYS requires the business to be operating for one year prior to application.

Before certifying as a VOSB and SDVOSB it is imperative that a business understands the control and ownership requirements of VOSB and SDVOSB certification. The business must be unconditionally owned and controlled by a veteran or service-disabled veteran. This unconditional control must be reflected in the business’ controlling documents and everyday operation of the business.

Procuring contracts that are set aside for VOSB or SDVOSB when the business is not unconditionally owned and controlled by a veteran is a violation of the False Claims Act and can have dire consequences such as prison time, large civil fines up to triple the profit earned on improperly gained contracts as well as debarment for five years from future federal contracting opportunities.

The process for VOSB and SDVOSB certification has many nuances. The attorneys at Sheats & Bailey, PLLC are experienced with these processes, and always ready to lend a hand to applicants filing for certification or businesses facing False Claim Act charges and debarment.  For more information or assistance contact Diana Plue, Esq. Sheats & Bailey, PLLC, Tel: (315) 676-7314, www.TheConstructionLaw.com.

The information provided in this article is not intended to serve as specific legal advice for any particular situation.  Competent legal and experienced counsel should be consulted.

Move Along, Inc.: Enhancing Abilities for All

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By: Liz Landry

Ten years ago, Mike Smithson suffered a spinal stroke and became an incomplete paraplegic, only able to walk and stand up with the help of assistive equipment. As a Navy veteran, retired air-traffic controller, husband and father, the following years were very difficult and involved re-learning his entire way of life.

In 2016, Mike attended an event hosted by the VA hospital and a not-for-profit organization called Move Along, Inc. There, he saw other disabled veterans playing sports, being active and genuinely enjoying life. He was so inspired by the participants that he became involved with Move Along and learned how to play adaptive sports himself, re-capturing his passion for life with every new activity he experienced.

Fast-forward to 2022 and Mike is now the newly elected board president of Move Along, working to achieve the organization’s goal of helping many more physically limited people re-gain enjoyment of life through adaptive sports and human connections.

In operation for over 20 years, Move Along has its roots in the still-active wheelchair basketball and sled hockey teams, the Flyers, which began in 1979. Move Along’s mission is to provide and promote inclusive adaptive sport and recreation opportunities for people with disabilities and allies.

The organization aims to make a difference for disabled people of every age and from every walk of life: veterans, stroke victims, amputees, the elderly, those born with cerebral palsy, spina bifida and other congenital disorders, and the list goes on.

The main goal of Move Along is to make adaptive equipment as available as possible to everyone in the community. Move Along owns many types of devices that are adapted for use by people with varying levels of physical abilities. Recumbent chairs, hand cycles, tennis chairs, wheelchairs for wheelchair basketball, sleds for sled hockey, kayaks equipped with pontoons, and many more, are all available for borrow or rent. Additionally, the organization sponsors and coordinates several events and sporting activities, such as wheelchair basketball and sled hockey tournaments, as well as stroke victim support group meetings, to name a few.

As the organization evolves, another of Mike’s initiatives for Move Along is to build partnerships with other like-minded organizations and increase educational awareness about interacting with disabled people. “We want able-bodied people to engage with us and not ignore us,” Mike explained.

People with physical disabilities often feel marginalized and disconnected from the wider communities they live in. When these individuals get the chance to actively participate in sports and other recreational events, their spirits are uplifted and their excitement is unmistakable.

“We want to reach people to tell them they should not be alone, they should not be looking out the window at their friends riding their bikes – they should be able to get out and play. I know how life-changing it can be,” Mike said.

As a 501(c)(3) non-profit, Move Along accepts donations to help reach its goals and continue to provide adaptive equipment for the community. All are welcome to get involved and help live out the organization’s mission.

To learn more about Move Along and how you can help or lead others to utilize their services you may visit their website at www.MoveAlongInc.org or call 315-350-1726.

Wilkins Mechanical: ‘I accept this challenge’

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By: Tami Scott

Susan Heffernan- Owner, President & CEO

Condensate Repair Manhole #3, Farrell Hall SUNY Delhi

Science III Chiller Upgrades, SUNY Binghamton University

When Susan Heffernan was presented with a chance for change, she grabbed it. It wasn’t part of her plan though it certainly served its purpose.

Heffernan had just enrolled at the Whitman School of Business at Syracuse University to further her education. She had been working as an accountant but felt an inner tug to do something different. Earning a master’s degree in her field was a sensible, safe route to start.

One phone call changed everything.

She learned through a friend that the owners of Wilkins Mechanical were looking to retire and sell their business. Her friend, who was aware of her current discontent, encouraged her to inquire. And so, she did.

“The broker asked if I’d ever considered owning my own business and I said ‘well, not consciously,’” Heffernan said, noting that for years she always worked hand-in-hand with business owners. “I guess you could say in a way, I’ve always been in training for this very moment, it didn’t take long for me to realize that this was the right path to take, so I gladly accepted the challenge and the process began.”

On Dec. 30, 2021, Heffernan became a business owner. For 11 months leading up to that moment, she embraced every occasion to learn from the people who built it.

“I worked alongside the previous owners for a few months with the intent of hitting the ground running a little faster upon closing,” Heffernan said. “That experience certainly helped me gain some insight on what challenges they faced and what I might expect.” 

Heffernan credits her mom and grandmother — her biggest heroes — for instilling the strength to take challenges and leaps of faith because, “if you don’t you never really know what you are capable of, and without risk, there’s no reward, right?”

Looking back, Heffernan said never once did she feel like she couldn’t do it. “I had the attitude of ‘yes, you can do this.’ The experiences I’ve gained over the years have prepared me for this.’”

Heffernan is in the process of working on obtaining her WBE certification, which she hopes to achieve by the end of 2023. “Through research, webinars, and speaking with other certified WBE business owners, I know the process is quite extensive,” she said.

Challenges and rewards

When asked what are the challenges and rewards of this new venture, Heffernan responded by saying that everything is rewarding and challenging all at once.

“They feed each other,” she said. “It’s exciting to be faced with a challenge or obstacle, and finding the solution or resolution to those situations are the reward.”

Before pursuing a shift in her career, Heffernan worked in finance for almost ten years at Martin-Zombek Construction. “We were all encouraged to “think like a business owner,” “think like an entrepreneur,” she said. “At that time, it was practice; now, it’s the real deal.”

Stopping the “I’m an employee” thought process was one of Heffernan’s biggest challenges. Her background at Martin-Zombek, however, prepared her well for the new path she walks today.

“I’m grateful to have had the experience at Martin-Zombek,” she said.

Though Heffernan is the new leader of this female-owned business, she’s mindful of each team member’s purpose within the establishment.

“We all have a very important job to do here and none of us can do it [alone],” she said. “The kind of culture I’m trying to create and build off of [is] the foundation that the Wilkins’ [had] so tirelessly built. We’ve got a solid crew, in the field and in the office.”

Aside from the employee-to-employer transition, Heffernan is also conscientious of continuous learning and the value of networking. The Construction Financial Management Association (CFMA) and the Syracuse Builders Exchange (SBE) — had both served as substantial resources for her in the past. She plans to engage with each again.

 

“[CFMA] and [SBE] were huge for networking and were resources when I was in my previous position in construction,” she said. “I miss that education because [not only] would I learn something new, but it also validated what I knew [already]. That’s how I can be most helpful to my team, by making sure I’m continually learning and knowing  the best way to account for all the hard work my team is doing.”

Though it’s been less than a year, the rewards so far, she said, are seeing the teams come together and watching the business develop.

A little history

Wilkins Mechanical Inc. was formally incorporated in 1997 and family-owned for 41 years. That’s a history that would make anyone who succeeds the founders feel both secure in their acquisition and apprehensive about filling their shoes.

“Many people dislike change,” said Heffernan. “There are times when it’s even uncomfortable for me. So, I understood there was going to be some apprehension [and] potentially some resistance.”

Heffernan noted how oftentimes when a new owner takes over, they decide to build their business from scratch. “It makes sense that there would be some concern,” she said, “but that was definitely not my plan.”

In fact, the only changes she sees on the horizon are newer technology and more staff. For herself, Heffernan implemented an accounting software program within the first six months to keep organized in job costing and project tracking. Her next focus will be organic expansion — growing the business in a way that makes sense.

“I hope to increase employment over the next few years,” she said. “New York State has been a very good customer; we have had success in bidding OGS, DASNY and SUNY projects. ”

Heffernan looks forward to having internal conversations with employees on exploring other gainful avenues, too.

What should their customers know?

Sometimes change can shake up customers’ confidence if they’re uncertain about what to expect. At Wilkins Mechanical, Heffernan exudes a commitment to excellence.

“I carry the same values, work ethic, and pride that the former owners had,” she said. ”I respect that. I want to continue to preserve the reputation that the previous owners worked so hard to build — that’s my goal.”

Does that mean there won’t be any “oh shoot,” “oh darn,” or “I’m sorry” moments? Of course, there might be, she said, because learning curves are a natural — and healthy — part of a new process, and show humility. Heffernan advocates for customer conversations to bring her up to speed on current happenings.

“I appreciate our customers and I am thankful for their patience in our growth,” Heffernan said. Our customers have been wonderful to work with. I’ve very much enjoyed getting to know them.”

In essence, Heffernan’s view on success for everyone is about collaboration. “We’re very prideful in the work that we do because we do a knockout job. We’re welders, we’re pipefitters and nobody can weld as good as we can,” she said. At the same time, feedback is critical, too. “If our client is unhappy with a certain situation, we entertain that. We’re open to that conversation.”

“I see everything as a team,” she added. “Everybody needs support, whether it’s on a project from a project manager to the foreman to the client’s project manager — we all need to work together and that’s the kind of culture and philosophy that I’m trying to build.”

Heffernan may not have ever consciously thought about owning a business, but her experience, philosophies, and can-do attitude, together with team-building principles, appears to have put her on the path she had been seeking from the start.

Main Boiler Plant Combustion Ventilation & Reverse Osmosis System, SUNY Upstate Medical University

Wilkins Mechanical Apprenticeship Program

The Wilkins Mechanical Apprenticeship Program is accredited through the National Center for Construction Education & Research (NCCER), which is recognized by the New York State Department of Labor.

“We encourage anyone, at any age, to join our organization and learn the plumbing, pipefitting, and steam-fitting trade,” Heffernan said.

The typical program is five years. The work processes that an individual is trained on and the minimum required hours are set by the DOL. A newly hired individual who enters the program will “test in,” which will determine their knowledge and skills to influence their entry level.

AmeriCU: Setting the Stage for Success Through Uncertain Times

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By Alycia Schick

Ron Belle, President & CEO

Grand Opening, Liverpool NY Branch

Operating a business in an ever-changing economic climate can be challenging. Being in the financial services industry, credit unions are certainly attuned to shifting economic environments. Despite rising costs in 2022 and economic uncertainties ahead for 2023, AmeriCU Credit Union has continued to grow.

Established in 1950 on Griffiss Air Force Base in Rome, New York, AmeriCU has grown to serve more than 160,000 members across Central and Northern New York. The credit union also specializes in working with over 850 business partners with whom they offer financial solutions and services to their workforces.  

Ron Belle, President and Chief Executive Officer of AmeriCU Credit Union, discusses AmeriCU’s “Stay Connected” strategies that can apply to businesses of any size. 

  1. Stay Connected to Your Markets

AmeriCU understands the importance of staying connected to its members. Identifying trends and changing needs of your market is not just important, it’s critical.  So is knowing how customers want and need to connect and interact with your business. Having this level of knowledge can ensure you are providing the services and technology capabilities necessary to remain relevant as well as could provide your business an opportunity to expand. Having a clear understanding of your market also provides a foundation towards developing a strategic direction.      

AmeriCU has found there are several ways to collect market data. The credit union regularly provides surveys and encourages member feedback to ensure the credit union understands what members are looking for in the way of product and service enhancements, member service expectations, and ease of doing business. AmeriCU has also found value in partnering with research companies who specialize in identifying industry and consumer trends across the region and nation.

  1. Stay Connected to Your Teammates

AmeriCU has strategically enhanced its self-serve technology capabilities for both members and teammates. “Our members require convenience of doing their banking how and when they choose – the same applies to our teammates,” says Belle. AmeriCU has enhanced internal capabilities so they can be more efficient, for example in gaining instant access to important business data. “Beyond any technology changes, our 400 teammates are who make us AmeriCU. We live our culture every day.”

Talent is hard to find and highly coveted. Retaining and promoting is just as important as hiring new teammates. AmeriCU makes it a priority to understand what individuals are looking for in an employer, while recognizing what motivates them to achieve success. This creates a culture that allows individuals to grow and thrive in their career at AmeriCU. The credit union also puts an emphasis on training and expanding the skills of teammates, leading to improved job satisfaction and more opportunities for internal promotions. Doing so helps to improve member experience and service levels that are industry leading.

AmeriCU conducts monthly all-staff meetings that supports transparency across the organization and keeps team members connected to the credit union’s vision and mission. AmeriCU offers a hybrid work schedule to attract and retain individuals, allowing for greater flexibility and balance, along with a generous paid time-off program. Regularly scheduled department and individual meetings along with a bi-annual review processes are in place. These practices keep teammates and management connected throughout the year while cultivating an environment of learning and personal development.

  1. Stay Connected to Your Community

Being a good corporate steward is paramount to success. Research shows individuals want to do business with companies that make a difference and leave the world in a better place for future generations. AmeriCU is committed to giving back to the communities it serves. The credit union supports local charities and community organizations and understands the importance of giving back financially and through volunteerism. AmeriCU regularly engages with community leaders to understand their needs and how to partner together. Teammates are also encouraged to spend time in the community and build connections that make a difference. A benefit at the credit union is a Personal Day of Meaning, giving each teammate the choice of a local organization important to them to volunteer their time. 

  1. Stay Connected to Your Vision, Mission & Strategic Plan

AmeriCU believes that by keeping its vision and mission at the forefront along with annual strategic planning allows them to be flexible and achieve desired outcomes. “The economy has been through a difficult period these last few years with a pandemic and high inflation. We had to plan and prepare more than ever,” says Belle. “Having a strategic plan provided us the ability to adapt during these times.”

When formulating a plan, it is important to identify what you do well, understand market trends, and try to anticipate needs.  These questions, along with direct feedback from the markets it serves, helped AmeriCU develop a strategic plan that teammates can embrace and track progress towards achieving goals. From this, AmeriCU formed a strategic plan and created a business strategy focused on six key pillars to sustain success and growth. Within each pillar are goals that are specific, measurable, achievable, realistic, and timely (SMART). 

AmeriCU has project management tools in place and holds regular check-ins with key stakeholders to measure progress against the plan. Strategic planning sessions are conducted to evaluate and adjust plans in response to business needs, shared or new learning opportunities, or external factors. This plan is available to the AmeriCU team and serves as a guiding light for decision making. AmeriCU has found greater structure and documentation allows it to better respond to shifting market conditions.

AmeriCU recognizes every business is different and the future can be uncertain. “In an increasingly disconnected world, real connections matter more than ever. Connecting to our members, our teammates, our communities, and our vision has truly been key to our success,” says Belle.  As a local, member-owned organization and full business service provider, AmeriCU takes pride in helping other businesses achieve their goals and is always there to offer tips and lend a hand.

AmeriCU & You. Let’s Connect. 

For more information on AmeriCU, visit AmeriCU.org or call 800.388.2000.

Drakos Clinical Laboratories: Providing Healthcare Without Walls in Central New York

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COVID-19 has radically disrupted the U.S. healthcare industry, which in turn has disrupted other business industries and entire communities. Healthcare workers are experiencing burnout at alarming rates. In a 2020 EClinicalMedicine survey, almost 50 percent of healthcare workers reported they were burned out from the COVID-19 pandemic. A 2021 special report from Morning Consult found that, since February 2020, 18 percent of healthcare workers have left their roles, 12 percent were laid off, and 31 percent have contemplated leaving their jobs.

Burnout and turnover issues are worsening U.S. healthcare provider shortages and hospital occupancy issues that existed even before the pandemic. Patients often wait long hours in the emergency room before seeing a physician, and many leave before they’re seen at all. If you’re in the healthcare industry, these could be your patients. If you’re in any other industry, these could be your employees. Either way, this issue affects us all.

The healthcare industry needs new, flexible solutions to ensure everyone has the access to care they need. In Central New York, Drakos Clinical Laboratories strives to serve patients wherever they are. Drakos provides mobile, at-work and at-home medical testing, concierge medical services, and medical testing logistics for large-scale events and productions. The company is now pursuing new partnership opportunities to help better reach patients.

“At Drakos, we believe in healthcare without walls,” says Drakos Founder and CEO Heather Drake Bianchi. “If we can go into a patient’s home, workplace, or another safe location to check their vitals and do their laboratory work, it lessens the pressure on hospitals, urgent cares, and physicians. It can also be safer for many patients, especially people who are immunocompromised or have young children or older adults at home.”

Drakos’s story begins in 2020 when its CineMedics division was founded. CineMedics was created to address the unprecedented medical testing needs on film sets during the pandemic.

“When the pandemic began, there was a significant need to keep entertainment productions running safely. People’s livelihoods depended on it,” says Drake Bianchi. “This was particularly important being from Central New York where we have a relatively new, but rapidly growing film industry. We knew that our skills as first responders were a natural fit for protecting people in this moment and ensuring they could do their jobs without worrying about COVID.”

The company’s roots are in community paramedicine. Many of the staff members, including Drake Bianchi, are first responders who are experts at providing critical medical services in any environment. A scientist as well as entrepreneur, Drake Bianchi earned her Master of Science in human anatomy and physiology from Northeast College of Health Sciences and her bachelor’s in biomedical sciences from RIT. Before founding CineMedics and Drakos, she spent 16 years working in critical care medicine, both in the U.S. and internationally. She has served as a paramedic for National Geographic, Remote Medical International, and the Ocean Classroom Foundation.

In the pivotal first months of the pandemic, the Drakos/CineMedics team helped developed new protocols that became the standard throughout the film industry. They provided medical services to major productions, including the cast and crew of the Oscar-nominated “Don’t Look Up.” They were also hand-picked by the CNN conference “LIFE ITSELF” to conduct large-scale event testing for a VIP crowd. At “LIFE ITSELF,” they provided the COVID-19 testing for attendees such as Dr. Anthony Fauci, several past U.S. Presidents, astronaut Mark Kelly, actress Goldie Hawn, and more.

Over the past two years, Drakos/CineMedics has grown from seven people to a team of 50, with locations throughout the U.S. and in the UK. They continue to be sought out by major production companies as the #1 preferred company for these services.

Most recently, CineMedics provided care for the cast and crew of the new Netflix film “The Union.” Described as a “blue-collar James Bond,” the action thriller stars Mark Wahlberg, Halle Berry, and J.K. Simmons.

As a result of CineMedics’ work on the film, Wahlberg asked Drakos/CineMedics to provide concierge medical care for him and his friends and family on his current project, an Apple Original film titled “The Family Plan.”

There’s still more Drake Bianchi and the Drakos team want to do. Drake Bianchi previously assisted in search and rescue efforts for Hurricanes Katrina, Irene, and Sandy. Having seen firsthand the barriers that underserved populations face when trying to access healthcare, she has also committed the next phase of her business to using her mobile technology to bridge that gap for veterans, rural populations, low-income individuals, the sex worker industry, and the LGBTQ+ community right here in Central New York.

“Sometimes I can’t believe this is my life. It’s an incredible honor to be able to deliver quality care to so many people,” says Drake Bianchi. “I love being able to meet people where they are and ensuring they have what they need to be healthy.”

Increasing access to healthcare services became even more important to Drakos when a close colleague was diagnosed with cancer during a recent production. Seeing their friend fight cancer accelerated the Drakos/CineMedics team’s desire to serve more people.

“To survive cancer, you have to survive chemo, which means staying out of the hospital and staying hydrated,” says Drake Bianchi. “We want to reduce their exposure in the hospitals. Our friend and colleague getting their cancer diagnosis jumpstarted our work to provide these services and do them well.”

Drakos believes that this kind of care is the wave of the future, with both immediate and long-term implications. While the immediate need for everyone in our community is apparent, by 2040, more than 20 percent of the U.S. population will be 65 years or older—a demographic change for which the U.S. healthcare and caregiving systems are currently unprepared, especially in light of the damage caused by the pandemic. Additionally, many older people want to age in place, creating a need for services to come to them.

Drakos aims to ensure everyone has the care they need, where they want it, now and in the future.

Looking ahead, Drake Bianchi sees boundless ways to innovate Drakos and how healthcare is provided—which could have significant positive impacts on other entities within the healthcare industry, as well as the health and productivity of our community overall.

“We have the tools to make healthcare more accessible, more inclusive, and more tailored to patients’ individual needs,” says Drake Bianchi. “We’re ready to connect with new partners who are also excited to help shape the future of healthcare.”

For more information on Drakos Clinical Laboratories and CineMedics please visit their respective websites.

 

Are Your New Year Resolutions Setting You Up to Fail?

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By: Jason D. Nickerson, CFP®, EA, Executive Vice President & Chief Operating Officer, John G. Ullman & Associates

That’s right, I said it.  A quiet voice amongst a crowd of gurus and life coaches that surface this time of year to help you get on track.  I am the opposite of this.  Not because I don’t believe in goal setting.  As an advisor and Certified Financial PlannerTM, this is the second step in our process.  It is essential to have goals.  As Zig Ziglar said, if you aim at nothing, you’ll hit it every time.

We need to aim for something in our personal and professional lives.  So, we set our targets, goals, and New Year resolutions.  Increase profits, increase customer satisfaction, lose weight, and get our financial lives in order.  We use “proven” systems to lay out our goals and plans, we buy-in to the hype of some consultant who is going to help us set our sights, and then ultimately, we fail.  Why?  “I used the SMART system.”  “I had an accountability partner.”  “I did everything they told me to do.”  I am telling you it’s not your fault, its psychology that is built into us.

First, let’s dive into why we set New Year resolutions.  Psychologists call this the Fresh Start effect.  We pick some arbitrary point in time that we feel is the beginning.  Monday, January 2nd, whatever, this is the first step in our failure.  We make such a big deal out of the starting point.  We eat worse because we know we won’t be able to eat the junk food starting at that point.  We rest and reduce intensity and focus knowing we have this big goal we will start working towards starting at some point.  We spend a certain amount of time just getting ourselves up to a pace of work and intensity to make progress and we find ourselves already behind our timeline a short time in.  You see, not your fault.  Its psychology programmed into us.

Second, there are two places we fail in this goal setting and chasing:

  1. We set big, huge, monstrous goals, and as humans, we tend to believe we are capable of more than we are. This is related to the Dunning-Kruger effect.
  2. We lose sight of the fact that there is very little within our control.

Again, I am all for setting goals and achieving them, so please don’t take this article as you should not be setting goals.  There is great advice out there to support this process (like SMART goals).  Let me present ideas on how we can do this better, given the errors I have pointed out.

  1. “A journey of a thousand miles begins with a single step” (Chinese proverb): Focus on the single step. If you want to lose 20 pounds in 2023 as an example, focus on losing 1-2 pounds the first week.  Then another 1-2 pounds the following week.  That success drives motivation and motion.  This can be attributed to the snowball effect in psychology.  A snowball rolling downhill picks up speed and size.
  2. Realize that there is so much more out of our control than within our control and you won’t lose site of the goal when you get delayed or behind. At the beginning of 2020, people and businesses were on their way to chasing down those big goals and resolutions.  Then a global pandemic hit and shut down the world.  Realize there will always be something that knocks you off course.  The universe is built this way.  Use it to toughen your resolve.  Reset your timeline and then go back to focusing on that next single step.

Psychology has failed you, but do not let that be your crutch and excuse.  Set your goals, get started now, know you will fail, toughen up, reset, and get back after it.  Cheers to you all for a successful 2023!

A New Year – Same Challenges

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By: Pierre Morrisseau, CEO, OneGroup

CEOs are entering 2023 better prepared after a long period of unique challenges yet facing many of the same risks and issues. According to the most recent Fortune/Deloitte CEO Survey, the majority of CEOs are cautiously optimistic that their companies will perform well this year and will continue to focus on investing in key strategic areas, particularly digital transformation and talent acquisition and retention.

This is true at my company as well as we are seeing continued stress on the organization from “The Great Resignation” and “Quiet Quitting.” As a result of the tight and highly competitive market for the best talent, employees have shown that they aren’t hesitant to quit their jobs and find something that better caters to their needs. Adding to that stress, the migration over the past few years to remote work has likely permanently altered the workplace environment and requiring workers to return to the office is showing that is serves to push away top performers.

We’ve seen that pizza parties, ice cream trucks and happy hours are not going to be what entices employees to return to the office. We are working harder than ever to enrich the workplace experience on a personal level for our employees and promote the benefits–both to the employee and our clients–of high-focus collaboration.

According to some business surveys, companies are looking to redirect a portion of their real estate budget towards high-intensity, high impact team off-sites. Our firm has had great success in pulling various teams together in off-site locations to problem solving and camaraderie, as well as holding a company-wide offsite we call Day Of Learning, where all employees come to Syracuse for a full agenda dedicated to their personal growth and enrichment.

We are experiencing there is no one-size-fits-all approach for bringing our employees back to the office. We realized we needed to figure out what works best for our employees, culture, and business needs. Forcing employees to conform to pre-pandemic modes of doing business leads to increased resignations and unhappy employees. Yet new research from Microsoft found that 50% of leaders are planning to require employees to return to in-person work full-time in the next year even while this same research revealed that 52% of employees are considering changing to a full-time remote or hybrid job. We hope to learn from this research and take the corrective steps to prevent losing valued employees. For example, to ensure we are meeting the needs of the individual, it is crucial that our leadership team take the time to solicit feedback from employees.

The Fortune/Deloitte survey confirmed that nearly all CEOs (94%) expect to see talent shortages for certain roles. When asked what they plan to do, CEOs indicated that they will focus on the employee experience, looking at ways to empower employees, and manage the tension around returning to the office. The plan to offer more flexibility and predictability in hours and location of work, increased immediate rewards for taking on more responsibilities, sabbatical programs, paid leave for caregiving, and more.

We at OneGroup view this persistent employee engagement issue as a significant item on the list of operational risk. It is easy to become disconnected from employees, customers, vendors, and the community in the current environment.  As we enter the New Year, we must find ways to adapt and stay connected.

If you have questions about risk management or would like to share ideas on how you are finding success with talent acquisition and retention, I would love to hear from you. Here’s to your great success in 2023.