Business

A pair of articles in the Buffalo News this morning has bleak and bleaker pronouncements to make on the upstate economy as we head into the holiday season. While economists have yet to declare the big 'R' word at the national level, researchers at one local university have no trouble making such a statement about our own home turf. From one article: "University at Buffalo researchers are declaring a recession in New York."

Not only have we taken off with a head start, but it looks like we'll be huffing and puffing out on the track field of troubled economies even after the nation has made its laps and gone:

“Given that the current decline has been precipitated by the implosion of the real estate bubble that created a serious financial crisis for major Wall Street investment banks and insurance companies, New York state’s economy is again likely to be hit harder than the national economy,” said Isaac Ehrlich, a UB economist. Wall Street accounts for about 20 percent of the state’s tax revenues.

In another article, picked up from the Associated Press, holiday job seekers are found to be too many for too few open slots.

The odds of landing a part-time job at department store operator Bealls Outlet Stores this holiday season are slimmer than getting into Harvard University: It’s one out of every 45.

It's much the same across the nation. In California, one 7-Eleven received more than 100 applicants in a week for a position that pays $8.50 per hour.

The national trends are being borne out locally as department store, convenience chain and call center managers who only a year ago had to scramble to fill holiday jobs are seeing a surge in the number of seasoned applicants — many of them laid off in other sectors and desperate for a way to pay the bills.

That was the case with Tracey Gibbs, a Buffalo resident who landed seasonal work at keepsake store Things Remembered in the Boulevard Mall. She said last month that she accepted a seasonal job because full-time positions were scarce.

What have you seen here locally? A few weeks back, the Daily News published a handful of stories on the economy that all sounded the note of cautious optimism. Since then, it seems things have only gotten worse. We've heard about troubles with several downtown businesses, and whether that's linked to the general economic downturn or not, it doesn't bode well. Are you a local retailer? Have you seen more applicants than usual looking for a part-time holiday gig? Have you cut back your positions?

Fire hydrants in the village of Oakfield will be flushed starting Monday and ending on Friday of next week, according to WBTA's Wayne Fuller.

Seventy workers at the Fisher-Price facility in East Aurora may soon be out of a job. The company, run by Mattel, plans to cut 1,000 jobs across the nation due to "the economic slowdown." About 900 people are employed at the facility in East Aurora.

Batavia-based manufacturer Graham Corp. has seen its sales slow in the second quarter after so many months of strong growth.

From the Buffalo News:

The troubles in the financial market and the plunge in energy prices are taking a toll on Graham Corp.’s sales and orders, but company executives said Tuesday they don’t think the slowdown will last long.

Investors, however, had a more bearish view, focusing on the company’s slowing sales growth and flat profits during the second quarter and causing Graham’s stock to plunge by 27 percent, or $5.70, to $15.25.

Graham Corp. is no more immune to the current credit crisis than anyone else, it would seem.

Because of the upheaval in the energy and credit markets, which have made it difficult for independent refinery operators to borrow the money needed for expansion or upgrade projects, Graham’s new order bookings fell by 15 percent in the summer quarter. Lines said he also expects orders to be “light” during the final three months of the year.

Still, (Graham's President R.) Lines said Graham’s customers continue to work on new projects and noted that the company still has ample opportunities to bid on future work.

Don't expect any economic slowdown to slow down the company's own verve. Lines is already talking aquisitions.

With nearly $43 million in cash on its books and virtually no debt, Lines said he sees the ongoing economic upheaval as creating an opportunity for Graham to use its solid financial position to make acquisitions, although asking prices remain high.

Graham is interested in deals that would be less than $100 million in size and broaden the company’s line of custom- engineered products for the energy industry, ranging from refinery projects to the renewable energy field. The company also is interested in deals that would expand the company’s geographic footprint, he said.

Monday morning, Pontillo's restaurant in Batavia closed up shop temporarily for renovations. "It's all good," owner Sam Pontillo told Daily News reporter Joanne Beck. In that article, which appeared in the Tuesday edition of the Daily, Beck wrote that Pontillo "expects to re-open ... within a couple of weeks."

One has to wonder if that's really the case. Owing to an anonymous tip, The Batavian has learned that "Pontillo's Pizzeria" in Batavia owes more than $112,000 in unpaid taxes to the New York State Department of Taxation and Finance. In an attempt to collect those funds, the state department has issued six tax warrants to "Pontillo's Batavia Pizzeria Inc." totalling $58,379. Another roughly $53,000 in unpaid taxes were the subject of warrants issued to other "trade" names of Pontillo's.

Finance Department Spokesperson Susan Burns:

"Generally, the tax department tries to work with the taxpayer and work on some sort of negotiated settlement in order to satisfy those warrants. Generally we like to see everything come to a positive outcome, and that's generally what happens in these situations. Sometimes, is there a time when a business is seized? Yes, that happens also."

No seizure of property has yet been made by the state, however, Burns said. Pontillo's is not faced with any deadline when the taxes must be paid. Burns stressed that the department does its best to negotiate a settlement before it comes to legal seizures.

In a records search at the Office of the Genesee County Clerk, The Batavian turned up six tax warrants issued to Pontillo's Batavia Pizzeria Inc. Two of those were for withholding tax, three for sales tax and one for corporate tax, explained Burns. They were issued between March 28 and October 17, of this year. All are still outstanding.

In addition to these, we discovered another tax warrant issued to "Sam's Tomato Pies Inc." and "Pontillo's Pizza" in the amount of $36,117.80. Another warrant in the amount of $17,585.03 was issued to "Pontillo's Pizzeria." Burns explained that "Pontillo's Batavia Pizzeria Inc." has been trading under the name "Sam's Tomato Pies Inc." for about a year or so now. Pontillo's Pizzeria is the sort of general rubric that comprises the Batavia Pizzeria Inc. and Sam's Tomato Pies. That entity is responsible for all of the owed taxes listed under all three "trade" names, which amounts to more than $112,000.

A warrant was also issued to Pontillo's Batavia Pizzeria Inc. by the New York State Department of Labor in the amount of $1,640.92. The Workers' Compensation Board of the State of New York has also filed a judgment in the amount of $1,250, in addition to a civil suit filed with the state's Supreme Court.

Whether this is related to the recent closure of Pontillo's, we cannot say. The Batavian tried to contact Sam Pontillo earlier today. We left a message at the Pontillo's restaurant in Le Roy at 3:30pm. We also tried a telephone number listed for John Pontillo in the Batavia phone book, but that was disconnected.

Pontillo's closed Monday morning and will remain that way for a couple of weeks or more, according to the Daily News. The restaurant will undergo renovations in that time.

In other news, the city school district—along with others all over the state—have been warned "to brace themselves about future state aid," according to Pat Burk, Batavia's Board of Education president. More info should become available in a couple weeks.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

It's all about the economy today in the Daily News. Hardworking reporter Joanne Beck logged no less than three front page stories today, all with a local look at how the current economic crisis is hitting home for folks in Batavia.

In one article, Beck chats with some downtown business owners about how they're faring "despite the recent stock market collapse." Chris Ariyaratnam, owner of the Main Street beauty salon Mane Attraction, told Beck that shoppers aren't "going to cut back."

"They're starting their Christmas shopping now," [said Ariyaratnam]. "I think they'll spend the same, but I think it will take longer. I think it's going to be OK."

Beck found much of the same mood among other downtown retailers and restaurateurs. Maybe they're not stocking as much, but their expectations of a good season are high.

In another article, "consumers" are given their turn to be optimistic despite the ongoing financial crises. Sherrity DiSanto told Beck:

"Short-term, I'm worried. But long-term, I think it will be picking itself back up. With gas prices going down and some sales, people's desire to shop will come back."

The optimism keeps on rolling in Beck's third article on the economy, in which she gets the advice of Dave Chua, a financial adviser with the Legend Group, "a retirement planning and investment company." Chua urges people to "remain still with where you are" and know that "it won't last forever." In particular, people looking for some extra cash shouldn't just dip into their retirement account. They should "explore other options."

Meanwhile, a wire story picked up from the Associated Press reads: "Debt clock out of digits." Apparently, it couldn't fit the "1" to indicate the nearly $10.2 trillion in national debt. Good news, though. We'll get a new clock in 2009 that "will be able to track debt up to a quadrillion dollars, which is a "1" followed by 15 zeros."

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

Recognitions keep on coming for Batavia's Graham Corp. The vacuum and heat transfer manufacturer has climbed 100 spots on the Forbes list of the 200 Best Small Companies and cracked the top ten, landing at No. 10 and boasting a 41 percent return on equity for the past 12 months. Forbes had this to say of the company:

Graham Corp., in Batavia, N.Y., makes pumps, condensers, vacuum and heat transfer equipment for heavy industry, especially oil refineries. Revenue increased 31% last year and the backlog 40%. The domestic, Canadian and Middle East markets are booming. The 72-year-old company has branched into Suzhou, China.

Graham got a nod from Business Week earlier this year, making the list of the fastest growing small companies.

We've got a call into Graham to get some comment from the company on the recognition. We'll be sure to pass that along as it comes to us.

Batavia-based Graham Corp. hasn't been immune to the recent tumble in stock prices.

The company, which traded at a 52-week high of $109.82 in mid-August, closed Friday at $40.18, only 18 cents above it's 52-week low of $40, achieved in early January.

The stock lost 32 percent of its value in the past week, falling $18.68 per share.

On August 31, the Democrat and Chronicle ran a story noting that Graham was the region's best performing stock for the previous 12 months.

You can read company press releases and see it remains a strong financial performer.

In July, GHM announced a dividend increase and a 2-for-1 stock split to take effect tomorrow.

Most of the stories on the front page of today's Daily News were already featured on The Batavian this morning. We featured a full post on the court settlement between former priest Simon Howson and the Episcopal Diocese of Western New York. We also included in our early morning roundup two stories picked up from WBTA about the awarding of a $3 million grant to United Memorial Medical Center and the demolition of a downtown block in Le Roy.

We did not yet report that a state committee has begun the search for a private operator to take over the ownership of the state School for the Blind in Batavia. Scott DeSmit reports that "two private entities ... may be qualified to operate the school: Perkins School for the Blind in Masachusetts and The Center for Discovery in Monticello." Other operators may also be interested, and state legislature approval will be required before any move toward privatatization can go forward.

In other news, two new businesses are on their way to the town of Batavia: one to the new shopping center and another on West Main Street Road. Peebles, the national clothing retailer, will host its grand opening on November 13 at its location in the Batavia Shopping Center on Veterans Memorial Drive. Other businesses expected to move into the plaza include: "Cato, a women's and girls' cothing store; GameStop, a video game retailer, and a Shoe Show shoe store." Also planning on an opening by the end of the year is a KFC/Long John Silver's, which is set to open its doors at its West Main Street Road location by Christmas.

As for non-retail construction, an apartment complex set to go in "next door to East Town Plaza" got its approval from the state Division of Housing and Community Renewal. Joanne Beck writes:

The state-funded project is to be 43,000 square feet of a parking lot, two entrances (one for emergency vehicles) and 40 one-bedroom apartments. The units will predominantly be for clients of DePaul, a Rochester-based not-for-profit group that specializes in assisted living programs to help people who have mental illness, are in recovery from chemical addiction and/or live with a developmental disability.

Art enthusiasts and crafters in Genesee and Orleans counties will be happy to learn that galleries and studios throughout both counties will be open to the public this weekend. Genesee gets its turn Saturday from 10:00am to 4:00pm. Orleans will have a go at the same times Sunday. Pick up your free map and brochure listing of all participating studios at GO ART! at 201 E. Main St., Batavia.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

Larry's Steakhouse is set to open this Thursday for lunch and dinner. Larry's is located at 60 Main Street, attached to the Genesee Country Mall, with front-door access on Main Street.

We stopped by the restaurant today to wish them well and find out more about what they've got to offer. You can download the complete menu here. We also asked owner Steve Mullen if he could describe the place in a single sentence. He told us: "It's a great new dining experience with a very affordable menu." They've got everything from Guinness artichoke dip to marinated Mahi Mahi.

It's not hard to guess that steak is the specialty. Steve recommends the everyday steak special: a 14 ounce NY Strip, with a cup of chili or soup de jour, a salad and a side for $17.99.

The smartest thing I heard from Jon Powers during his campaign was about turning Western New York into a decent place to start new, green businesses.

I thought of that when reading Thomas Friedman's column today.

But that is not the point of this column. The point is, we don’t just need a bailout. We need a buildup. We need to get back to making stuff, based on real engineering not just financial engineering. We need to get back to a world where people are able to realize the American Dream — a house with a yard — because they have built something with their hands, not because they got a “liar loan” from an underregulated bank with no money down and nothing to pay for two years. The American Dream is an aspiration, not an entitlement.

In a green economy, we would rely less on credit from foreigners “and more on creativity from Americans,” argued Van Jones, president of Green for All, and author of the forthcoming “The Green Collar Economy.” “It’s time to stop borrowing and start building. America’s No. 1 resource is not oil or mortgages. Our No. 1 resource is our people. Let’s put people back to work — retrofitting and repowering America. ... You can’t base a national economy on credit cards. But you can base it on solar panels, wind turbines, smart biofuels and a massive program to weatherize every building and home in America.”

So even if Jon Powers ain't the 26th District, why can't WNY be a leader in creating new green businesses? Does it take a congress rep to make that happen, or just visionary entrepreneurs?

A state grant for $50,000 recently awarded to Batavia-based Graham Corp. will be used to certify the company with the International Organization for Standaridization, better known by its acronym: ISO. In particular, the funds will pay for the consultant who needs to be hired to guide the company through the standardization process and the subsequent training and development in the ISO procedures.

Dan Harvey, Graham's human resources director, said that the company is pursuing its "ISO-9000 quality system" certification. Such certification from the ISO essentially provides a stamp of approval for manufacturers that says the company and its products meet specifications accepted around the world.

"We're still in the process of meeting specifications," said Harvey. "We have not yet reached those. We're still doing some more training and development, and there are different milestones we're looking to acheive."

This kind of grant is called "an insutrial effectiveness grant," according to Stefanie Zakowicz, spokesperson for Empire State Development, the state economic development group that authorized the grant for Graham.

Said Zakowicz:

"The purpose of the grant is to pay consultant fees that provide technical and financial services to help a firm improve its productivity, efficiency and market share. It's only for New York State manufacturers that employ fewer than 500 workers, so small to mid-size. The more employees you have, the more you can get. In their case, at the time of application, they had 280 employees. Anything over 100, would make you eligible for up to $50,000."

Graham Corp. applied for the grant on June 17, of this year. They are on schedule to complete the project by the end of September.

Some 150 residents and officials of the town of Alabama got together last night to talk about a proposal that would allow a 1,300-acre manufacturing site to move into town at the intersection of Route 77 and Judge Road, according to WBTA's Chad Zambito. It seems no specific manufacturer has yet been named, though a feasibility study shows that a solar panel or flat display manufacturer might be the best fit. Nothing will get done, however, without state funding and the sanction of the town. Word is that any such large-scale manufacturer could bring "thousands" of jobs to the area.

That brings up a serious question: What would thousands of jobs, which I interpret to mean thousands of new people, mean for a town that hasn't even cracked the 2,000 mark in population? Doesn't that mean a new town? Also, how does that work? Recruiting for thousands of jobs? Are there stipulations that jobs must first come from the region? How is that possible? What other benefit would such a manufacturer have for a rural community? Would this mean the transition to more suburban living in Alabama?

Lots of questions here. Don't know if the Alabamans are already asking or not. Anyone know?

In other news, we reported yesterday on an article from the Daily News about the shady goings-on at a pair of area Pizza Hut restaurants. Today, the official word is out: Pizza Hut restaurants in Albion, Amherst, Medina, Alden, East Aurora, Grand Island and Aurora have all been closed. Zambito reports that the owners cite poor performance as the reason for closing the shops—why else would they, right—and say that they will open new locations "under the Wing Street Chicken Theme," whatever the heck that means.

It seems the Daily News ran out of all the hard-hitting and otherwise informative news that made for an overstuffed edition Wednesday—really, they put together a fine paper yesterday. Today's top headline, in triple-bold font, reads: "Pizza Huts set 'to go' in Albion, Medina". Sure, this is news, but top of the front page news? Well, on closer inspection, it seems that yes, there is more to this story than one might at first suspect.

Check out this second paragraph from reporter Virginia Kropf:

Rumors about the closing of the Albion and Medina stores have been circulating around the county for several days, but attempts to verify the fact on Wednesday were met with "No comment" or slammed receivers.

Sounds like some serious business. And Kropf doesn't let up. In what seemed like a boring story about a couple chain restaurants closing turns into a story about the worker getting screwed over by the man. It turns out the employees in Albion were never told the store would be closing, not officially—or at least, this is the impression from the article. Instead, the management simply stopped posting work schedules and told the employees to show up in Medina at 9:00am Thursday without their uniforms. They were not told why, they said to Kropf.

Check this out:

A man who answered the phone in the Lockport office said he was a supervisor, but declined to give his name. He said he knew nothing about any closings and when confronted with the sign in the Albion Pizza Hut [which read: Due to closing...], he said, "Thanks for telling me. I'll have to call and tell them to take it down."

When asked if he was saying the store would not be closing, he hung up.

Whoa. Those are some shady dealings. A quote from one of the women who works at the Albion Pizza Hut sums it up: "If they had been up front and told us, I could have had that other job," she said.

Great job giving a voice to the voiceless, Virginia. Great article.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

If you're looking to save a few bucks, learn yoga and taekwondo or get some free grub, you may want to search out the Downtown Batavia Coupon Book. It looks like this:

Inside, you'll find deals for a free cup of java at Main Street Coffee, a week of classes at Cain's Taekwondo, a session of tai chi at Blue Pearl Yoga, $35 off a pair of glasses at Optique, and much much more. The booklets of coupons include more than 30 downtown businesses and cost $2 each. You can find them at these locations:

Adam Miller Toy & Bike, Angotti Beverage,  Carlson’s Studio, Charles Men’s Shop, Christiano Cellular, Continental School of Beauty, Grugnale’s, House of K, Main Street Coffee, Marchese Computer, Optique, The Cutting Shack, The Spa at Artemis, Valle Jewelers and Washington Towers.

Information from the Batavia Business Improvement District.

From the D&C:

Lowe's will open its sixth area store in Batavia, Genesee County, on Oct. 18.

The new home-improvement store, at 4180 Veteran's Memorial Drive, has 117,000 square feet of retail space, with an adjacent garden center.

Batavia-based Graham Corp. (AMEX: GHM) received a $50,000 grant from the Empire Development board this week, according to a press release.

No word on the grant will be used. We'll see what we can find out Monday.

The grant was part of $67 million package of funds handed out by the agency. The funds are intended to spur economic growth.

Other area grants include:

• One Aid to Localities grant, totaling $150,000, to World Trade Center Buffalo Niagara for salaries and wages associated with outreach and service efforts in the twelve-county Western New York and the Finger Lakes region
• $50,000 to the Livingston County Agricultural Society and Fair
• $50,000 for Erie County Industrial Development Agency (Erie County)
• $25,600 for Qualicoat Inc. (Monroe County)

Graham was recently named one of Business Week's top 100 small companies. In Q2 2008, Graham reported $27.5 million in revenue and a 20 percent net profit margin. Graham employs 281 people. It's stock currently trades at $69.63.