AUGUST 10, 2015 I SOUTHERN TIER BUSINESS JOURNAL I 1TGBBJ.COM

BATES TROY STORY 5

BRIEFS 2

SCOTT TECH STORY 4

THE LIST 7

UHS STORY 3

n INDEX:

Register @ tgbbj.com to receive your daily

dose of business news

TGBBJ.COMTGBBJ.COMYOUR SOURCE FOR BUSINESS

NEWS, RESEARCH, AND EVENTS

Presorted StandardU.S. Postage Paid

Syracuse, N.Y.Permit # 568

Covering the Southern Tier

AREA'S HIGHEST-PAID OCCUPATIONS

Ranked by 2014 Annual Mean Wage in the Binghamton MSA

Rank Occupation

Annual Mean Wage ($) Mean Hourly Wage ($)Estimated No. of Area Workers in Occupation

1. Physicians and Surgeons, All Other

$225,030

$108

470

2. Family and General Practitioners

$217,360

$105

N/A1

3. Dentists, General

$202,350

$97

80

4. Psychiatrists

$168,520

$81

80

5. Sales Managers

$157,890

$76

50

6. Marketing Managers

$154,440

$74

50

7. Chief Executives

$145,890

$70

210

8. Architectural and Engineering Managers

$137,670

$66

200

9. Judges, Magistrate Judges, and Magistrates

$131,890

$63

60

10. Computer and Information Systems Managers

$128,280

$62

140

11. Financial Managers

$118,040

$57

150

12. Pharmacists

$114,970

$55

240

13. Software Developers, Systems Software

$110,580

$53

460

14. Veterinarians

$108,870

$52

50

15. General and Operations Managers

$106,080

$51

1,530

16. Psychology Teachers, Postsecondary

$102,830

N/A2

70

17. Personal Financial Advisors

$101,260

$49

90

18. Purchasing Managers

$98,780

$47

N/A1

19. Electronics Engineers, Except Computer

$98,550

$47

330

20. Physician Assistants

$98,500

$47

N/A1

21. Human-Resources Managers

$97,450

$47

40

22. Education Administrators, Postsecondary

$95,280

$46

230

23. Education Administrators, Elementary and Secondary School

$95,030

N/A2

210

24. Software Developers, Applications

$94,730

$46

540

25. Lawyers

$94,730

$46

190

1Estimates not released.

2Wages for some occupations that do not generally work year-round, full time, are reported either as hourly wages or

annual salaries depending on how they are typically paid.

RESEARCH BY

Tourism Survey Results: Area travel spending rose 5% in 2014 . Page 4.

VOL. 8 I No. 5 I AUGUST 10, 2015 I $2.50TGBBJ.COM

Profit Pops: Tompkins Financial net income jumps 33 percent in second quarter.Page 2.

THE LIST:

BINGHAMTON MSA HIGHEST-PAID OCCUPATIONS

PAGE 7

S O U T H E R N T I E R

BUSINESS JOURNALBUSINESS JOURNAL

PAGE 6NORM

AN P

OLTE

NSON

/BUS

INES

S JOU

RNAL

NEW

S NET

WOR

K

Alan Rae, executive director of IncubatorWorks, at the Elmira

Airport Park, stands in the 47,285 square-foot space it will lease.

WORK BEGINS ON UHS COMPREHENSIVE ORTHOPEDIC CENTER IN VESTAL

PAGE 3

PHOT

O CR

EDIT

UHS

AREA'S HIGHESTRanked by 2014 Annual Mean W

Annual Mean W

Physicians and Surgeons, All OtherFamily and General Practitioners

$202,350

$168,520

$157,890

$154,440

$145,890

Architectural and Engineering Managers

$137,670

Judges, Magistrate Judges, and Magistrates

$131,890

Computer and Information Systems Managers

$128,280

$118,040

$114,970

$110,580

$108,870

$106,080

$102,830

$101,260

$98,780

$98,550

$98,500$98,500

WORK BEGINS ON UHS COMPREHENSIVE ORTHOPEDIC CENTER IN VESTAL

PHOT

O CR

EDIT

UHS

After rebranding, IncubatorWorks

expands to Elmira Airport

Park

BATES TROY INSTALLS FIRST MICROGRID IN BINGHAMTON

PAGE 5

NORM

AN PO

LTEN

SON/

BUSIN

ESS J

OURN

AL N

EWS N

ETW

ORK

2 I SOUTHERN TIER BUSINESS JOURNAL I AUGUST 10, 2015TGBBJ.COM

ITHACA — Tompkins Financial Corp. (NYSE: TMP) on July 31 reported net income of $17.4 million, or $1.15 a share, in the second quarter, up from $13.1 million, or 87 cents, in the year-ago period.

The Ithaca–based banking company said results for the current quarter were boosted by a one-time curtailment gain of $3.6 million after tax, or 24 cents a share, related to changes to the company’s pension plan. If this gain were excluded from the cur-

rent quarter’s results, Tompkins Financial’s earnings per share would total 91 cents, still the best second quarter in company history, according to the earnings report.

Tompkins Financial pro-duced more than $60 million in revenue in the

latest quarter.Tompkins Financial serves the Central,

Western, and Hudson Valley regions of New York and the Southeastern region

of Pennsylvania. It is parent of Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins, VIST Bank, and Tompkins Insurance Agencies, Inc. It also offers wealth-management services through Tompkins Financial Advisors.

Tompkins Trust ranks sixth in deposit mar-ket share in the 16-county Central New York region with almost $1.3 billion in deposits and nearly a 5 percent share of total market deposits, according to the latest FDIC data from June 30, 2014. The bank has 13 branch-es in the CNY market.

Tompkins Financial net income jumps 33 percent in 2nd quarterCOMING UP:

Next Issue: September 21

Top Ranks List: Largest Employers

October 26 Issue:

Top Ranks List: Nonpro� ts

December 7 Issue:

Top Ranks List: Credit Unions and Banks

STBJ Data & Details

Sign up for the Business Journal News Network’s Email News Alerts

Visit www.tgbbj.com

NEWS ALERTS

STBJ Briefs

High-tech manufacturer holds grand opening for new Binghamton headquarters

BINGHAMTON — ScottTech Integrated Solutions, LLC, a warehouse management-technology company, held a formal grand-opening ceremony July 23 for its new headquarters in the city of Binghamton, located at 336 Court St.

The firm designs automated systems that handle materials for warehouses and distribution centers, according to a news release from the office of Binghamton Mayor Richard David. The company also designs automated packaging and processing lines for food and beverage products.

ScottTech started in 1996, and currently employs 33 people, according to the release. It recently hired people for three new en-gineering positions, with salaries ranging from $50,000 to 75,000, as well as new as-sembly and technical positions as part of the company’s expansion into Binghamton, the release stated.

ScottTech purchased the building for $225,000 from Binghamton Storage, LLC, in June, 2014, according to Broome County property records. The company bought it through an entity called JMT Logistics Properties, LLC.

ScottTech spent more than $400,000 on rehabbing the building and purchasing new equipment, according to the release. The building is the former Hannsman’s Mills fac-tory, and had been vacant since 2006.

“ScottTech has invested hundreds of thousands of dollars to bring new life to a

vacant building and support exactly the type of well-paying, professional jobs we’re looking to create in Binghamton,” Mayor David said in the release. “ScottTech’s spirit for entrepreneurship and innovation is re-markable. We officially welcome them into the growing Binghamton business com-munity.”

The company chose the location in Binghamton because of its proximity to downtown hotels and restaurants, Mike

Yezzi, ScottTech’s managing partner and vice president of business development, told the mayor’s office.

The company has a software develop-ment facility in the Onondaga County town of Salina, located at 2500 Brewerton Drive, and a service center in the Rochester area. Other ScottTech service centers are situated in New Jersey, Ohio, Pennsylvania, South Carolina, and Texas, according to the com-pany’s website.

WRITERS/EDITORS:

Eric Reinhardtereinhardt@tgbbj.com315.579.3915

Norman Poltensonnpoltenson@tgbbj.com315.579.3916

Adam RombelEditor-in-Chiefarombel@tgbbj.com315.579.3902

Nick Kapteynnkapteyn@tgbbj.com315.579.3904

The new headquarters for ScottTech Integrated Solutions in Binghamton.

PHOT

O CR

EDIT:

SCOT

TTEC

H W

EBSI

TEHealthlinkNY moves to new, larger Binghamton office

BINGHAMTON — HealthlinkNY — a nonprofit, regional health-information organization for an 11-county area of southern New York — has moved its western office to a new, larger location at 49 Court St. in downtown Binghamton.

The organization moved to the new 9,500-square-foot space, from its prior 4,000-square-foot office on 45 Lewis St., because of growth in its workforce and its workload in the Southern Tier region, the nonprofit said in a news release. HealthlinkNY has 21 full-time employees working from its Binghamton office.

In 2005, then operating under the moniker Southern Tier HealthLink, it had just nine employ-ees, according to HealthlinkNY’s marketing & rela-tions coordinator, Brandi Devine.

The staff’s first day in the new office was Monday, Aug. 3.

Devine says the organization currently plans to hire “a few more” employees in the coming months, but does not have an established time-line.

HealthlinkNY offers a health-information exchange for the region spanning the Hudson Valley, Catskills, and Southern Tier of New York. It was formed by the collaboration between Southern Tier HealthLink (STHL) and Taconic Health Information Network and Community (or THINC).

Binghamton–based United Health Services, Lourdes Hospital of Binghamton, and other stake-holders established STHL in 2005.

HealthlinkNY encompasses 11 counties: Broome, Tioga, Chenango, Delaware, Sullivan, Ulster, Dutchess, Orange, Putnam, Rockland, and Westchester, according to the nonprofit’s website.

Its eastern office is located in Fishkill in Dutchess County.

The new western offi ce for HealthlinkNY, which just opened in downtown Binghamton.

PHOT

O CR

EDIT:

HEA

LTHL

INKN

Y WEB

SITE

AUGUST 10, 2015 I SOUTHERN TIER BUSINESS JOURNAL I 3TGBBJ.COM

ClassoftheofofofofthethethethethetheCentury

Cornell University division of rare and manuscript collectionsPhoto:

August 22 on WSKG TVby Brian Frey

Birth of the American University chronicles the founding of Cornell University, focusing on two men, Ezra Cornell and Andrew Dickson White, whose individual dreams and ambitions would come together to create one of the great institutions of learning in the world. This one-

footage from the Cornell University Archives.

Cornell: Birth of the American University at 7:00PM

Class of the Century at 8:00PMfollowed by the broadcast premiere of

An artist’s rendering of the new $30 million UHS

Comprehensive Orthopedic Center located at 4433 State

Route 434 in Vestal.

PHOT

O CR

EDIT:

UHS

Work begins on UHS Comprehensive Orthopedic Center in Vestal BY ERIC REINHARDTereinhardt@tgbbj.com

VESTAL — Construction-site work on the planned $30 million UHS Comprehensive Orthopedic Center is underway at 4433 State Route 434 (the Vestal Parkway East) in Vestal.

Crews started the demolition work on the site of the former Van Atta car dealer-ship about five weeks ago, says Danielle Donlin, UHS program director for muscu-loskeletal services.

She spoke to The Business Journal on July 17.

UHS expects the 68,000-square-foot Comprehensive Orthopedic Center, which crews will build adjacent to UHS Vestal, to open in late 2016, the organization said in a news release issued June 24.

Regional, technological, and industry trends are driving the need for such a facil-ity in the area.

“Our region’s aging population, coupled with technologic[al] advancements and minimally invasive surgical techniques, results in a growing need for orthopedic and similar services in the Southern Tier,” Matthew Salanger, president and CEO of UHS, said in the release.

Binghamton–based UHS, which is short for United Health Services, is the third largest health system in Central New York, according to the 2015 Book of Lists.

The New York State Department of Health found UHS’ evidence of public need for the new orthopedic center “compel-ling” and “quickly” approved its certificate of need, or application, necessary to launch the project, according to the release.

“It’s a fairly large process. It probably had to do with the market and the growth of our current practices and how there’s no more room for expansion and it’s on-site,” says Donlin.

The Town of Vestal approved the project at its March planning-committee meeting.

About the centerThe UHS Comprehensive Orthopedic

Center will house UHS’ medical programs in orthopedics, podiatry, chiropractic, rheumatology, and physical therapy, ac-cording to the UHS news release.

Each of those services will relocate from another UHS site to make the new location its home.

UHS said it has designed the new facility to accommodate “significant” growth and to allow for the recruitment of additional health-care providers.

The new building will also house the Binghamton area’s largest sports-medicine practice, UHS said. It will feature areas for post-surgical strength conditioning and a concussion program specifically related to sports injuries.

The new orthopedic center will employ more than 125 people, including providers and staff, and will create at least 15 new jobs once it opens, UHS said.

It expects the facility to record 125,000 outpatient visits per year.

UHS is designing and building the Comprehensive Orthopedic Center to “complement” its Vestal complex next door, creating an outpatient campus that hosts a number of UHS medical programs at one, “centralized” location, the organization said.

Architecturally, the new building will be a “companion” to the UHS Vestal struc-ture. Chianis + Anderson Architects, PLLC designed the Comprehensive Orthopedic Center, while LeChase Construction is the contractor on the project, says Donlin.

UHS is a locally owned, nonprofit, 916-bed hospital and health-care system serv-ing Greater Binghamton and surrounding counties.

Founded in 1981, UHS provides medi-cal, surgical, rehabilitative, and long-term care services from more than 60 locations around New York’s Southern Tier. n

4 I southern tIer busIness journal I auGust 10, 2015tGbbj.com

Region includes Greater Binghamton and Utica–Rome areasBY ERIC REINHARDTereinhardt@tgbbj.com

T ravel spending in the eight-county Central New York tourism region totaled more than $2 billion in 2014,

up nearly 5 percent from 2013.The figure is part of a larger study that

Tourism Economics, Inc. conducted that found travelers spent a “record” $62.5 bil-lion across the state in 2014.

The Greater Binghamton Chamber of Commerce distributed a news release that included the figures on July 23.

The release defined Central New York as including Broome, Chenango, Herkimer, Madison, Montgomery, Otsego, Schoharie, and Oneida counties. New York State calls that same area the Central New York Vacation Region (formerly the Central-Leatherstocking Region).

The eight counties are also featured at the website www.justgocny.com, a site that lists attractions, dining, lodging, and events through the region.

Kelly Blazosky, president of Oneida County Tourism and chair of the Central

New York Vacation Region, called the find-ings “terrific news.”

“It’s clear that visitors are choosing to come to Central New York and enjoying our attrac-tions, restaurants, and shops. But what’s really important to note is that these travelers are supporting more than 35,800 jobs across the region,” Blazosky said in the news release.

The Tourism Economics study found that the state’s tourism industry generated $596 million in direct labor income in 2014.

The figure climbs to $999.7 million when it includes indirect and induced labor in-comes.

Tourism in Central New York yielded near-ly $238 million in state and local taxes in 2014,

“saving the average household $786 in taxes that year,” according to the news release.

The release lists the following county-by-county tourism statistics for 2014 from the Tourism Economics study:

Broome County:• Travelers spent more than

$285 million, up 4.5 percent from 2013 • The tourism industry generated

$143 million in total labor income• Tourism yielded more than

$34 million in state and local taxes, sav-ing the average household $433

Chenango County:• Travelers spent more than

$28.2 million, up 1.7 percent• The tourism industry generated

more than $10 million in total labor income

• Tourism yielded nearly $3.4 mil-lion in state and local taxes, saving the average household $173

Herkimer County:• Travelers spent more than

$109.8 million, an increase of 1.8 percent• The tourism industry generated

more than $48.9 million in total labor income

• Tourism yielded more than $12.5 million in state and local taxes, saving the average household $472

Madison County:• Travelers spent nearly $83.7 mil-

lion, up 3.6 percent• The tourism industry generated

nearly $43.6 million in total labor income• Tourism yielded more than

$10.3 million in state and local taxes, saving the average household $383

Montgomery County:• Travelers spent more than

$39 million, an increase of 15 percent• The tourism industry generated

more than $18.7 million in total labor income

• Tourism yielded more than $4.7 million in state and local taxes, saving the average household $237

Oneida County:• Travelers spent more than

$1.2 billion, up 4.9 percent• The tourism industry generated

nearly $630 million in total labor income• Tourism yielded more than

$143 million in state and local taxes, saving the average household $1,565

Otsego County:• Travelers spent more than

$175 million, a rise of 4.8 percent• The tourism industry generated

nearly $83 million in total labor in-come

• Tourism yielded nearly $22 mil-lion in state and local taxes, saving the average household $900

Schoharie County:• Travelers spent nearly $54 mil-

lion, up 2.6 percent• The tourism industry generated

nearly $20.8 million in total labor in-come

• Tourism yielded more than $6.5 million in state and local taxes,

saving the average household $514

CBNA01630_Biz_75x9875_Ad, 7.5”w x 9.875”h, 4C

P E R S O N A L B U S I N E S S W E A L T H

Stop into any branch or call our business bankers, and let’s find a loan that’s right for your business.

communitybankna.com/business

For your business loan, may we suggest our

business-friendly bank?

(And our people-friendly bankers.)

FOLLOW US

Member FDIC

01630_Biz_75x9875_4C_Ad_F.indd 1 7/13/15 4:27 PM

Study: Travel spending in 8-county CNY area rose 5 percent in 2014

AUGUST 10, 2015 I SoUThern TIer bUSIneSS joUrnAl I 5 TGbbj.com

BY NORMAN POLTENSONnpoltenson@tgbbj.com

BINGHAMTON —– Mother Nature has a way of getting our attention. In 2006 and again in 2011, the Southern Tier was inun-dated by two, 500-year floods.

In 2011, 20,000 residents were ordered to evacuate the Binghamton area when the Susquehanna River crested at more than 25 feet — 11 feet above flood stage. The 2006 floodwaters forced Lourdes Hospital to shut down and evacuate its patients.

“The flood of 2011 really got our at-tention,” says Brian Kradjian, president and CEO of Bates Troy Healthcare Linen Services, located on Binghamton’s near west side. “Our company provides critical services to area hospitals, nursing homes, and clinics by transporting soiled health-care textiles to our plant and delivering clean linens on a timely basis. These health-care facilities generally operate 24/7, so we need to ensure an adequate supply. We felt an obligation not just to our customers but also to other area facilities faced by an emergency.”

After the 2011 floodwaters receded, the Bates Troy staff began discussing options to guarantee that its plant would always be operational.

“In July 2012, we filed a New York State Consolidated Funding Application, which was supported by a partnership of the New York State Energy and Development Authority (NYSERDA) and Empire State Development (ESD). Our application met the standards set by Gov. Andrew Cuomo’s initiative calling for the next-generation energy system that is clean, resilient, and affordable for all New Yorkers.

Distributed powerBates Troy opted to purchase a com-

bined heat-and-power system, also known by the names “cogeneration” or “co-gen.” The system is capable of producing enough power for the company to operate its plant completely off the electric grid, even dur-ing sustained power outages,” Kradjian told CNYBJ at the unveiling of the co-gen system on May 27.

“The system is comprised of four, 100-kilowatt Tecogen Inverde units capable of producing a total output of 400 kilo-watts. That’s enough capacity to support 80 homes. The Tecogen units generate electricity and simultaneously capture the waste heat to help produce hot water. We’re very proud that it’s the first micro-grid in the region,” he says.

A micro-grid is a small-scale power grid that can operate independent of or in con-junction with the main electrical grid. David Garrison, CFO of Tecogen, notes that the four units installed at Bates Troy are invert-ers, which take DC energy and convert it

to AC power of any voltage or frequency. Each unit is powered by a 454-cubic-inch Chevy engine.

“The micro-grid concept is the best way for us to keep Bates Troy running 24/7 and guarantee the support our custom-ers demand. That’s job-one. Secondly, the concept of distributed power offers us a substantial cost-savings,” Kradjian says. “We’re a small player in this industry, and we need to be competitive. It takes a lot of energy to heat enough hot water to clean 30 tons of laundry daily. And finally, this company has a long record of protecting the environment. This investment reduces pollution from electric generation by more than 50 percent.”

Ron Kamen, CEO of Earthkind Energy, who also spoke at the unveiling of the Tecogen system, noted that Bates Troy will generate about 90 percent of its daily electricity off the grid. In effect, the utility becomes the back-up to the Bates Troy co-gen system.

To finance the purchase and installa-tion of the co-gen system, ESD provided Bates Troy a $380,000 grant payable over three to five years, and NYSERDA offered a $594,000 grant. Bates Troy invested ap-proximately $700,000, supported by a loan from Tioga State Bank. The $1.67 mil-lion total does not include taxes, certain fees, interest, or miscellaneous peripheral costs. This investment follows a $4.5 million capital investment in 2008 that included an expansion of the building and the purchase of equipment.

“The co-gen investment has allowed us to extend our geographical reach from 90 to 120 miles,” asserts Kradjian, “and to hire an additional 25 employees. The company’s goal is to add a total of 55 new jobs. We now service Central New York, the Southern Tier, and Northeast Pennsylvania as far as Wilkes–Barre.”

The business and its originsBates Troy has two business lines: Bates

Troy Healthcare Linen and Bates Troy Quality Dry Cleaning, a dry-cleaning, tailor-ing, and fire- and water-restoration business. The company dates back to the 19th cen-tury when Otis Bates opened Bates Steam Laundry downtown on Court Street. In the early 1900s, Bates merged with the Troy Laundry and relocated to Laurel Street. In the late-1940s, two Armenian immigrants, Kenneth and Arthur Kradjian, who started in the dry-cleaning business as the own-ers of Ballard and Ballard, bought Bates Troy. In 2007, the company was one of the first laundries nationwide to be accredited by the Healthcare Laundry Accreditation Council. Brian Kradjian is the third genera-tion to lead the family business.

Today, Bates Troy operates from a 63,000-square-foot plant at 151 Laurel St.

and maintains three retail Binghamton outlets for its dry-cleaning business. The company employs 104 and maintains a fleet of 11 trucks. The property on Laurel Street is owned by the company. The stock is held by the Kradjian family. The Business Journal estimates that Bates Troy generates $10 million a year in revenue.

The commercial laundry industry is a $19 billion national market. According to Kradjian, “New York state consists of 7-10 laundries, of which Bates Troy has a domi-nant market share in the Southern Tier and in Central New York.”

Being creativeAgainst this background, Kradjian ob-

serves, “[w]e are a small business com-pared to our competitors. To compete, we must be both creative and innovative and be flexible and responsive to the needs of the 30 institutions [3,000 patient-beds per day] we serve locally. The investment in the co-gen system is primarily a response to our customers’ concern for back-up to guarantee our service 24/7. Second, our strategy has always been to control our costs and to pass the savings on to our customers. Third, Bates Troy is a leader in protecting the environment, for example, through water-saving measures and by re-cycling rather than generating waste which needs to be disposed. Finally, our growth has been measured and is the result of long-term relationships. Bates Troy sees itself as a strategic partner with its custom-ers: their success is our success.

“The plan for growth is to reinvest in technologies that are both green and cost-efficient and to focus on organic growth by offering more services to our existing

customers and by reaching out to new customers. One avenue to acquire new ac-counts is to convince nursing-home OPLs (on-premise laundries) to outsource their linen service to avoid the growing capital investment required of OPLs and to focus on their core business — providing health care to their patients. I am optimistic that Bates Troy will grow 10 percent this year as well as next year.”

Kradjian credits Bates Troy’s success to its employees, many of whom have been with the company for decades. He also cites the leadership team which, in addition to himself, includes Ara Kradjian, vice president and COO; Thomas J. Singe, general manager; Randy J. Widrick, sales and marketing manager; and James M. Rheinheimer, plant manager. Kradjian also recognizes support from Bates Troy’s pro-fessional service-companies: Tioga State Bank for financial services, legal counsel from Hinman Howard & Kattell, LLP, and architectural/engineering support from Keystone Associates, LLC.

Going greenBates Troy prides itself on going green.

“We are the only dry-cleaning company to receive the 4 Eco Leaf distinction awarded by the Green Cleaners Council,” exclaims Kradjian. “That’s not just for Broome County; it includes Upstate. On the laundry side, we received the “Clean Green” ac-creditation from the Textile Rental Service Association for our efforts to voluntarily reduce the company’s environmental foot-print. We are also a two-time recipient of the Broome County Legislature’s Green

Bates Troy installs first micro-grid in BinghamtonBrian Kradjian, president and CEO of Bates Troy in Binghamton, welcomed guests to the unveiling of a new co-gen system at the Laurel Street plant on May 27. It is the first micro-grid system installed in the region.

norm

an po

lten

son/

busin

ess j

ourn

al n

ews n

etw

ork

See BATES TROY, page 7 4

6 I southern tIer busIness journal I auGust 10, 2015tGbbj.com

Succession & Exit Strategies for your operating business

WEBINARPlease join us at 8:00 am - August 25, 2015

Top 10 questions you need answers to when considering an exit strategy: 1. Which exit options are available? 2. How to develop a long term exit strategy? 3. How to identify the key value drivers of your business? 4. How to determine the current value of your business? 5. How to enhance your business worth? 6. How to turn the value of your business into immediate hard cash? 7. What buyers are looking for in an acquisition? 8. What are tax consequences of business exit? 9. How long the process may take to complete?10. What are your responsibilities, involvement and time required throughout?

Learn from the CPA, Legal, Valuation & M & A Advisory practices from the following � rms:

M-One Advisors, LLC

VISIT CNYBJ.COM/MADISONONEWEBINARFacilitated by Business Journal News Network Webinars Business Journal

News Network

Presented by:

BY NORMAN POLTENSONnpoltenson@tgbbj.com

HORSEHEADS — A key Southern Tier eco-nomic-development agency has a new name and is developing a new facility at the Elmira Airport Park, offering flexible manufacturing space and support services for startups and developing businesses.

On June 30, the Ceramics Corridor changed its name to IncubatorWorks, which is a d/b/a of the parent company Alfred Technology Resources, Inc. (ATRI). ATRI is a 501(c)(3) corporation established to promote economic development in the Southern Tier by supporting entrepreneurial growth, the creation and expan-sion of area businesses, and the creation of jobs.

“It was definitely time to rebrand,” says Alan Rae, executive director of IncubatorWorks. “The focus on technologies associated with the ceramics industry continues at our incuba-tors in Alfred and Corning, but the expansion to the Elmira Airport Park lets us create a broader business ecosystem than just ceram-ics. The new name, then, encompasses ceram-ics and more. We’re creating a cross between an incubator and an accelerator.”

The new incubator is located on the east end of the Elmira–Corning Regional Airport — in the building that originally housed the Schweizer Aircraft Corp. and later Sikorsky Aircraft.

“The building contains 180,000 [square] feet of which we plan to lease 47,285 feet,” con-tinues Rae. “The space is designed to house between five and 10 tenants, which need flexible space that supports advanced manu-facturing. The Schweizer plant comes with a 40-foot-high bay space, easy truck-loading ac-cess, and plenty of parking. The plans for the new facility include creating testing-lab space, a cloud videoconferencing center, break room, offices, a redesigned entrance, adding natural light to brighten the interior, and rewiring the space to bring it up to code. In addition, the location is ideal: it’s on Interstate 86, on the airport, and near a railroad line.”

Rae goes on to say that “While the facility will be state of the art, what is even more excit-ing is the support IncubatorWorks can offer to startup and developing businesses, all in the Southern Tier. We serve as a hub to help de-velop the business plan, find financial support, and even furnish a variety of mentors. When new businesses enter the incubator here, we’ll help get their feet on the ground, give them the tools they need to grow, and plan their graduation to be successful on their own.”

IncubatorWorks has retained HUNT

(Engineers, Architects, Surveyors), head-quartered in Horseheads, to draw up the renovation plans. Construction is scheduled to begin this August with completion targeted for September 2016.

The total cost of refurbishing the structure is $1.5 million. ATR received a $300,000 grant from the Southern Tier Regional Economic Development Council, a $600,000 loan from the Chemung County Industrial Development Agency for renovations (incorporated into lease payments), and $150,000 from NYSEG for interior wiring. An application is pending for $150,000 from the Appalachian Regional Commission to extend fiber/broadband to the facility, install cloud-conferencing, and for other amenities. The building is owned by the Chemung County IDA, which has signed a 15-year lease with ATR. Rae says the estimated lease cost to tenants will be in the range of $7-$11 per square foot, with tenants paying for their energy consumption.

The new incubator has also partnered with Corning Community College to be eligible for the Empire State’s “START-UP NY” pro-gram. Tenants may qualify for the following: no corporate tax for 10 years, no property tax for 10 years, and no sales tax for 10 years. “This incentive has created a lot of buzz,” avers Rae. “Add to this the low cost of operating at the incubator; our state-of-the-art manufacturing services; mentoring for business operations; grant-making help, en-trepreneurial boot camps; and the inventors’ sandbox. IncubatorWorks has also partnered with Southern Tier Startup Alliance (formerly Southern Tier Innovation Hot Spot), an or-ganization of business incubators that pro-vides support to entrepreneurs. The alliance also works with incubators at Binghamton University, Rev Ithaca Startup Works, and Cornell University. In short, our eco environ-ment is not limited to the Elmira, Alfred, Corning area.”

Thinking aheadEven before construction begins on the

newest addition to IncubatorWorks, Rae is already eager to add another component. “We need to create a ‘makerspace’ here in [the] Elmira [area],” stresses the executive director, “These areas are designed as do-it-yourself spaces where people gather to create, invent, and learn. Today, makerspaces typically have 3-D printers, laser cutters, software, electron-ics, hardware supplies, and computerized ma-chine tools that everyone shares and access to

After rebranding, IncubatorWorks expands to Elmira Airport Park

Alan Rae, executive director of Incubator-Works, at the Elmira Airport Park, stands

in the 47,285-square-foot space which originally housed the Schweizer Aircraft

Corp. Tenants of the third and newest incubator of IncubatorWorks are eligible

for the Empire State’s “START-UP New York” program.

norm

an po

lten

son/

busi

ness

jour

nal n

ews n

etw

ork

See iNcuBATORwORkS, page 7 4

AUGUST 10, 2015 I SoUThern TIer bUSIneSS joUrnAl I 7 TGbbj.com

THE LISTResearch by Vance Marrinervmarriner@tgbbj.com I (315) 579-3911Twitter: @cnybjresearch

NOTES

1. Estimates not released.

2. Wages for some occupations that do not generally work full time, year-round are reported either as hourly wages or annual salaries, depending on how they are typically paid.

ABOUT THE LIST

Information was provided by representatives oflisted organizations and their websites. Other groups may have been eligible but did not respond to our requests for information. Organizations had to complete the survey by the deadline to be included on the list. While The Business Journal strives to print ac-curate information, it is not possible to independently verify all data submitted. We reserve the right to edit entries or delete categories for space considerations.

WHAT cONSTITUTES THE SOUTHErN TIEr rEgION?

For this list, Southern Tier includes Broome, Chemung, Chenango, Tioga, and Tompkins counties.

NEEd A cOpy Of A LIST?

Electronic versions of all of our lists, with additional fields of information and survey contacts, are available for purchase at our website: cnybj.com/ListResearch.aspx

WANT TO BE ON THE LIST?

If your company would like to be considered for next year’s list, or another list, please email: vmarriner@tgbbj.com

AREA'S HIGHEST-PAID OCCUPATIONSRanked by 2014 Annual Mean Wage in the Binghamton MSA

Rank Occupation Annual Mean Wage ($) Mean Hourly Wage ($) Estimated No. of Area Workers in Occupation

1.Physicians and Surgeons, All Other $225,030 $108 470

2.Family and General Practitioners $217,360 $105 N/A1

3.Dentists, General $202,350 $97 80

4.Psychiatrists $168,520 $81 80

5.Sales Managers $157,890 $76 50

6.Marketing Managers $154,440 $74 50

7.Chief Executives $145,890 $70 210

8.Architectural and Engineering Managers $137,670 $66 200

9.Judges, Magistrate Judges, and Magistrates $131,890 $63 60

10.Computer and Information Systems Managers $128,280 $62 140

11.Financial Managers $118,040 $57 150

12.Pharmacists $114,970 $55 240

13.Software Developers, Systems Software $110,580 $53 460

14.Veterinarians $108,870 $52 50

15.General and Operations Managers $106,080 $51 1,530

16.Psychology Teachers, Postsecondary $102,830 N/A2 70

17.Personal Financial Advisors $101,260 $49 90

18.Purchasing Managers $98,780 $47 N/A1

19.Electronics Engineers, Except Computer $98,550 $47 330

20.Physician Assistants $98,500 $47 N/A1

21.Human-Resources Managers $97,450 $47 40

22.Education Administrators, Postsecondary $95,280 $46 230

23.Education Administrators, Elementary and Secondary School $95,030 N/A2 210

24.Software Developers, Applications $94,730 $46 540

25.Lawyers $94,730 $46 190

1 Estimates not released.2 Wages for some occupations that do not generally work year-round, full time, are reported either as hourly wages orannual salaries depending on how they are typically paid.

RESEARCH BY

Business Initiative Award. Since 2011, Bates Troy has partnered with BAE to test the fuel economy of a delivery truck powered by a new propulsion system. We have cut our consumption nearly in half since installing our new tunnel washer and our efficient driers save both natural gas and electricity. We even introduced “Green Cleaning” garment tote-bags in our dry-cleaning stores to reduce the use of plastic bags. I’m very proud of the company’s

environmental record.”Bates Troy also takes pride in its long-

term relationship with ACHIEVE, a not-for-profit organization formed in 1952 to enhance the quality of life for residents of Broome and Tioga counties who have intel-lectual or developmental disabilities. “Since 2001, we have partnered with ACHIEVE through Country Valley Industries (CVI) located in Johnson City,” Kradjian points out. “Bates Troy supports 100 individu-

als at CVI to help us inspect and fold 2 million pounds of clean linen annually.” Achieve and CVI named Bates Troy the 2009 Company of the Year.

CEO’s backgroundKradjian grew up in Vestal and gradu-

ated from Boston University in 1993 with a dual major in economics and philoso-phy. Before joining the family business in the mid-1990s, he worked in Houston

and Boston. Kradjian currently serves on the business-development board at Tioga State Bank and served on the Broome County Industrial Development board. In addition to his role at Bates Troy as president and CEO, he is active in real-estate development in the Binghamton area. His avocations include fishing, trav-el, jazz, and architecture/design. He re-cently married his wife Anahit, and they reside in Vestal. n

BATES TROY: The company “has a dominant market share in the Southern Tier and in Central New York,” Kradjian says. Continued from page 5

people who know how to use them. The space helps designers and entrepreneurs to create prototypes and bring their vision to the mar-ketplace. For years, the ability to do this was confined to large corporations, which could afford the resources and staff.

Now, the ability to convert an idea quickly into a tangible manufactured product, using local skills, and potentially selling to a global marketplace is absolutely revolutionary. The tools to create enterprises are now accessible to anyone: It’s changing how companies are formed.”

Rae has applied for a grant to create 1,000 to 2,000 square feet of makerspace at the Elmira Airport Park facility.

The idea for an area incubator originated in 1988.

“Alfred University and Corning [Inc.] de-veloped the original idea at a time when local defense contractors were leaving,” recalls Rae. “They created what became known as the ceramics corridor, since both [entities] specialized in the field. One incubator was located at the university and the other at Painted Post (usually identified as Corning). The incubators were established, because landlords typically prefer not to subdivide their properties into spaces of 2,000 to 5,000 square feet.”

ExpansionThe Alfred location has 30,000 square feet

and 30 tenant employees, and Corning has 40,000 square feet and 70 tenant employees. Both incubators are fully occupied.

“To accommodate tenant growth and the growing demand from startup businesses, which is projected to add another 50 ten-ant employees [at Elmira Airport Park], we clearly needed to expand,” notes Rae. “The deal at Airport Park cost us one-tenth the price of building an addition on to either of the original incubators. It was a no-brainer.” IncubatorWorks has a staff of five employees — three full-time and two part-time.

IncubatorWorks has an eclectic mix of tenants. At Alfred and Corning, the incuba-tors house manufacturers of medical devices, reinforced glass for the medical industry, en-ergy-storage for the railroad industry, ceramic medical components, and green-cleaning. At the Elmira Airport Park, Rae is projecting ten-ants such as a 3-D printing company, electrical manufacturer, and aircraft-coating firm.

“Selecting new tenants is based on three criteria,” says Rae: “Is there a workable busi-ness plan, is the company compliant with state laws, is there a realistic means of the company supporting itself? Applicants can be startups, growing companies with two to five employ-

ees, or growing companies with products and revenue. When a company grows to 30 people, that’s usually the time for it to gradu-ate from the incubator.”

Rae’s rootsRae brings enthusiasm and broad in-

dustry experience to his job. “My wife says I have made a career out of ADD,” quips Rae with a twinkle. “I just can’t help being enthusiastic about the energy and creativity I see at IncubatorWorks.” Rae earned a B Sc. degree in chemistry from the University of Aberdeen in 1971 and added a Ph.D. in metallurgy and engineer-ing materials from Newcastle University in 1976. He also earned an MBA degree from Newcastle in 1985. His career includes stints in the following industries: electronics (raw materials, circuit boards, assembly, components); ceramics (traditional, struc-tural, refractory, electronic); alternative en-ergy (solar PV); and water (industrial water purification). On the business side, Rae’s experience includes new-business develop-ment, turnarounds, team-building, quality management, and system deployment. In addition to overseeing three incubators, the irrepressible Rae is also the CTO of Solan Corp. in the Greater Salt Lake area, chair of

the Industrial Advisory Board for the nano-manufacturing center in Boston, an adjunct professor at Alfred University, and the presi-dent of ReNew Rare Earth, Inc., located at the incubators at Alfred and Corning.

Rae has high expectations for IncubatorWorks. “In the past, too many com-panies started with a professor, a patent, and a prayer,” intones the peripatetic executive director. “They knew little about business or marketing a product. The idea was to start something and sell it to a big company. IncubatorWorks is a very different model. We want to attract anybody with a good idea, help to develop a product, find capital, set up a going business, and give them every incentive to stay in the area. Bottom line: I want to create not only economic activity but also ‘sticky’ jobs. My goal is to fill up the Elmira [area] incubator within a year after opening.”

In Shakespeare’s play, “Romeo & Juliet” Juliet is arguing with Romeo that the name of something does not really matter. Rae clearly disagrees. “When we focused just on ceram-ics, the name ‘Ceramics Corridor’ was appro-priate,” stresses the executive director. “Now that we are supporting a broad range of manu-facturers, IncubatorWorks does a better job of identifying us. The name is perfect.” n

INCUBATORWORKS: Rae brings enthusiasm and broad industry experience to his job Continued from page 6

8 I southern tIer busIness journal I auGust 10, 2015tGbbj.com

2015Presented By

Greater Binghamton Education OutGreater Binghamton Education OutGreater Binghamton Education Outreater Binghamton Education Outeater Binghamton Education Outeach eater Binghamton Education Outeater Binghamton Education Outreater Binghamton Education Outeach eater Binghamton Education Outreater Binghamton Education Outeater Binghamton Education OutPeater Binghamton Education Outeater Binghamton Education Outreater Binghamton Education Outeater Binghamton Education OutPeater Binghamton Education Outreater Binghamton Education OutPeater Binghamton Education Outogrameater Binghamton Education Outogrameater Binghamton Education Outeater Binghamton Education OutPeater Binghamton Education Outogrameater Binghamton Education OutPeater Binghamton Education Outeater Binghamton Education OutPeater Binghamton Education Outreater Binghamton Education OutPeater Binghamton Education Outogrameater Binghamton Education OutPeater Binghamton Education Outreater Binghamton Education OutPeater Binghamton Education Out

Hosted By

gbbe.org

Media SponsorsCreative Sponsor Event Sponsors Tech Sponsor

NEWNEW

DATEPLACE

Thursday, September 17, 2O15 | 1 - 6pm

DoubleTree by Hilton Binghamton

NEWPARKING: FREE Parking at Double Tree by Hilton Binghamton 225 Water Street Binghamton

ENTRY: $5.00 Admission FREE for Business Professionals and College Students

NEWNEWNEW

PARKING: FREE Parking at Double Tree by Hilton Binghamton 225 Water Street Binghamton

ENTRY: $5.00 Admission FREE for Business Professionals and College Students

DETAILS: Guest Speaker, Arel Moodie 100 Exhibitors Biz Talks Speed Networking Giveaways