Business

You see Pauly Berardini everyplace. His face is on the side of his ubiquitous delivery cars, on the outfield wall at Dwyer Stadium and various youth sports facilities around town.

It’s been that way in Batavia for five years now.

It’s an audacious bit of promotion, but when Berardini and his partner Dave Stupp decided to open up a pizza joint, they knew they would need strong marketing to stand out in a very competitive town for pizzerias.

“I thought about that (the competitive environment),” Berardini said while slathering tomato sauce on a pepperoni pie destined for a youth sporting event. “I thought about the demographic. I just decided to use my face, my talent and go from there.”

He's done other things with his life – from baking to selling cars – but to hear him talk, it’s clear: 40-year-old Pauly Berardini was destined to be a pizza man.

“I went to food service at BOCES and I learned how to frost cakes and make pancakes,” Berardini said. “That wasn’t exciting to me. Ever since I was a little boy, just watching that guy throw a pizza in the air – you know, like a kid wants to be a fireman, he sees the fire trucks, I saw a couple of gentlemen who ended up being good friends of mine kind of teaching me the business, and I just decided it was something I wanted to do.”

Pauly was inspired by the pizza men he saw at the legendary Gino’s Pizza. Gino’s was a mainstay at 102 Liberty St. through the 1960s and 1970s. Then the location became Ficarella’s, where Pauly worked for seven years. And that was the location Pauly chose for his own pizzeria when he and Stupp opened for business Oct. 24, 2004.

By all accounts, the original Pauly’s was a successful, growing company, and then tragedy struck – the kind of turn of events that has put many people out of business – fire.

An early morning blaze on March 21, 2007 destroyed Pauly’s on Liberty. The cause of the fire was never determined, but it meant that three businesses lost their locations. The old place -- behind the former Mother’s Chicken ‘n’ Fish building  -- is now a parking lot. 

Apparently, the two other businesses in that building – Room for Dessert Cafe and Batavia Framing and Design – never reopened.

Berardini and Stupp weren’t going to be kept down, though. Eighty-eight days later, the doors opened at 314 Ellicott St., and this time Pauly's featured seating and a waitress, a level of service the partners had wanted to add all along.

“I had a lot of phone calls and messages that were left on my answering machine from customers and friends encouraging me to get going again,” Pauly said. “Yeah, it was traumatic at first, but when one door closes, another one opens.

"Now we have a great sit-down place here and the parking on the weekends is great. (People can) bring the family, have a party – we have a party of 20 today – sit down is the key.”

Pauly was excited Saturday morning -- not just to be celebrating five years in business – he and Stupp had just received word that they’ve been approved for a beer and wine license and will start serving them within a week.

“Now you can come and enjoy pizza or pasta with beer or wine, and that’s always a plus,” Berardini said.

More than 400 people showed up for a party on Saturday evening at 700 Ellicott St., world headquarters of Chapin International, a growing Batavia-based manufacturer that employs 175 people and has been run by the same family since its founding in Oakfield 125 years ago.

Now that's something to celebrate.

Chapin International is a rarity in the business world. It's been family owned through four generations (and heading toward a sixth), which puts it among 2 percent of all U.S.-based businesses. Plus, it's been located in Western New York 1884, which puts it among an elite 1 percent of businesses statewide.

"I’m sure that my father, grandfather and great-grandfather would be amazed at what we have here today,"  Chairwoman of the Board Andris Chapin told the crowd to open the party.

"They would be amazed that there would be a tent and music and beverages and ice sculptures and just all of the wonderful things that have been put together for us today to help us celebrate."

The party featured dignitaries such as Congressman Chris Lee, Assemblyman Steve Hawley and State Senator Mike Ranzenhofer, but more emphasis was put on the importance of Chapin employees. Lee and Hawley both noted that the company's survival is a testament to how well its employees are treated.

Hawley told a story of how he first met Andris's father, Ralph Chapin, who befriended him as a college student. Hawley described him as an intelligent, kind, caring man, and that's why so many people have stuck with the company for so long. Chapin has third-generation employees, and people who have worked for the company for 30, 35 and even 45 years.

"It’s impossible to thank the thousands of people that have gone through our doors as employees, to thank them enough, but all I can say is I speak with such joy and sincere gratitude to all those people that have worked for us over the years," Andris said during a short interview. "Thank you. Thank you. Thank you."

In 1884, Ralph E. Chapin and his brother-in-law, Frank Harris, were selling kerosene at their hardware store in Oakfield, when Chapin noticed that the containers his customers used were not well made. They leaked. So Ralph started making his own cans in the back of the store and selling them to his customers. Soon, the cans were so popular, that Chapin sold the hardware store and opened up a factory in Batavia.

By the turn of the century, Chapin Industries was manufacturing air and hand sprayers for spraying a variety of liquids, from pesticides to cleaning solutions.

Chapin is still known best for its cans and sprayers, but CEO Jim Campell said in recent years the company has been growing by acquiring other firms, such as a company that makes bird feeders and bird-feeding supplies. That company, Campbell said, has doubled in size since Chapin bought it.

"It’s a great honor to be the person who is tending the business at this point, at 125 years," Campbell said. "I intend to leave it in better shape than when I got here."

He seems to have Chapin heading in a positive direction. Campbell, who became CEO in 2004, said the company has grown at a record pace each of the past five years.

And in an interview, when asked about what makes Batavia a good place for Chapin, he again talked about Chapin's workforce.

"Batavia is a great place to be," Campbell said. "Genesee County is still agriculturally based, and when you get people from agriculturally based communities, they come in with a really great work ethic. I’ve run businesses in very large cities and have actually been involved in manufacturing in China and Germany and the work force in Batavia is really second to none. People are extremely diligent. They show up for work, which is a big thing that you sometimes find is a problem, and they are very conscientious."

Andris Chapin said she's well aware of the pressure companies face when they stay in Western New York, but she said Chapin is committed to Batavia.

"My father and my aunts were all born here, in Batavia, and we have supported this community by providing employment for all this time and I just feel strongly that as long as it’s truly feasible we need to continue to support Batavia, Genesee County," Chapin said. "It works two ways. We have third-generation employees in the company. If we don’t take care of them, they can’t take care of us. We’re helping each other. Part of the viability of the company is just to hunker down, yes, and believe in Batavia, believe in Genesee County, believe in Western New York. If everybody went away, there would be nothing. So, so far we can do it, and that’s part of our resilience. But, yeah, it’s hard. New York State, Western New York, it’s tough."

The State's economic woes and a wet, dreary summer has put the squeeze on the Genesee County Chamber of Commerce's tourism promotion budget.

The state cut its "I Love New York" allocation to the chamber by 20 percent, or $15,000.

The wet summer kept some people from traveling and the local bed tax was down 9 percent, or $26,000.

That kind of drop is reminiscent of 2004, according to chamber Tourism Director Kelly Rapone. That year there were a lot of rainy days and that resulted in fewer hotel stays locally.

"The impact on the programming is that we're not really able to develop new programming or enhance the programming that we have," Rapone said. "It hurts our ability to provide additional marketing dollars to our partners"

The chamber's tourism division is responsible for helping bring people into the county for golf, or events, or sight-seeing. It puts together golf packages for individuals and groups, provides information on amenities and things to do and markets the county throughout the region.

One of the changes in market, Rapone said, is that the Chamber will reduce the radius of its marketing from about 300 to 500 miles to 200 miles.

"We're going to be looking to do more precise, targeted efforts rather than some of the broader initiatives," Rapone said.

A host of local dignitaries and medical professionals gathered in the North Street parking lot today for a groundbreaking ceremony on a $20 million expansion of United Memorial Medical Center.

The project will add 44,000 square feet to the facility as a one-story addition to the front of the current structure. Operating room space will double from 300 square feet to 600 square feet. An additional 19 private recovery beds will be added to the hospital as well.
 

Well, I guess we could all see this coming, and within the past couple of months it seemed pretty inevitable as work crews stripped the building of pretty much all equipment and furniture, but the former Mother's Chicken-N-Fish location is for sale.

It's too bad. At one time, it was a great place to eat.

Most new retail businesses never last past the first year. The owners either run out of cash, mismanage their inventory or pick a poor location. For Kamilla Kabel, though, she had more than a dream. She had a plan and did her research.

House of K celebrated its fifth anniversary on Saturday, and Kabel was all smiles.

"I feel it is an accomplishment," Kabel said. "I set out for a goal. My business plan said for five years of survival and I’ve done it, and (there's) even been a (widespread) financial crisis at the same time."

House of K features designer European fashion for women, and Kabel, a native of Denmark, said her stylish clothing appeals to women of Genesee County as well as drawing customers from Rochester and Buffalo.

"We bring in unique items you can't get any place else," Kabel said.

Kabel moved to the U.S. in 1999 to be closer to Batavian Ben Kabel, whom she met in Copenhagen while he was studying architecture there. They were married in 2000. The Kabels now have two children.

After obtaining a two-year degree in interior design from Monroe Community College and working as an assistant manager at Pier 1 Imports in Amherst, Kamilla wanted to do something that would give her more freedom to visit her parents in Denmark. She told the Daily News in 2004 that she always wanted to own her own business.

Retail was a good choice. The always-effusive Kabel says she loves people and the only bad times she has in the store is when there are no customers to talk with and help find the perfect dress for an afternoon wedding or pick just the right accessory for a designer blouse.

"The high point (of owning the store) has definitely been the customers," Kabel said. "We’ve become friends and I know their lives and they know me."

In a business environment where many naysayers might try to talk people out of starting their own stores, Kabel's advice is simple: "Go for it."

"You have to give it a try or you will always wonder," Kabel said. "You don’t know what lies ahead. You can try and prepare for everything, but you never know, so you’ve just got to go with the flow and change things along the way."

Next Level Fitness, the new fitness center Ken Mistler has been constructing at the corner of E. Main and Jackson streets, will open Tuesday, Dec. 1, Mistler said in a message on Facebook.

Doors will open for the first time at 8 a.m. on that day.

Memberships will be $19.95 per month with a $14.95 annual fee on a one-year contract.

Child care will be available for $2 for an hour-and-a-half (there will be some restrictions).

Fitness classes will also be available at an additional cost, though Mistler said the cost will be minimal.

There will be a separate workout floor for women.

The facility is completely remodeled inside using quality material. Members will be able to enjoy locker rooms with showers, as well as steam rooms.

In a year in which New York has seen growth in lottery revenue, Batavia Downs is among the most successful video gaming facilities in the state, reports the Ithica Journal:

The largest was a 10 percent revenue increase at Batavia Downs Race Track, which is owned by Western Regional Off-Track Betting. Western OTB was criticized when it bought the track in the late 1990s, but the success of the terminals has offset losses on the racing side, allowing Western OTB in recent years to return profits to the counties it serves.

Western OTB has had about $250,000 in losses at its betting branches this year, but has had a profit of about $1.5 million at the video-lottery facility, which has 605 machines, officials said.

Overall in New York, video lottery terminal sales grew 3.3 percent in the first half of the fiscal year. Mega Millions sales were up 37 percent.

The trend across most of the rest of the nation for state-run lotteries has been downward.

Sanzo and Sons, a beverage distributor with locations in Olean, Salamanca and Batavia has been approved for $30,000 in tax exemptions by Genesee County Economic Development Center as part of its plans to expand locally.

The company plans to spend more than $250,000, which it will borrow, to add new space to its facility at 11 Apollo Drive for offices and storage. It also plans to put on a new roof and upgrade equipment, including forklifts and delivery trucks.

The space at the facility will be expanded by 1,222 square feet and company officials say the improvements will help make it more efficient.

Vanderhoof Electric Supply is a new company that is purchasing the assets of Falcone Electric. It will be located at 385 W. Main St., Batavia.

Falcone Electric began in 1955 and has been a very stable wholesale electric supply business. The new owner is looking to keep the same trade name and staff.

Vanderhoof plans to invest $50k in computer warehouse management system in a few months and  a $50k upgrade building facade next spring.

The company has been approved for $16,000 in tax incentives.  It is also looking to borrow $100,000 from GCEDC's revolving loan fund. The company's total capital investment will total $400,000.

At a time when most companies in the U.S. seem to be just holding on, Prime Materials in Batavia is primed for growth, according to company President Russell  K. Western.

On Friday, Prime Materials held a job fair to help fill at least a half dozen openings and build a pool of applicants for a number of anticipated new jobs in the coming year.

According to Western, 44 people showed up and 13 will be invited back for a second interview and several more will be considered in the next round of hiring.

“We’re regularly frustrated in our ability to find appropriately skilled people,” Western said, who described the classic conundrum of employers finding people looking for work who are over qualified, or people who are underskilled with spotty work histories.

“We were greatly excited to have 44 people to pick from,” Western said.

The firm, located at 6 Treadeasy Ave., is poised for expansion, Western said, because there is a growing domestic market for its closed-cell cross-linked foam, which is used as packing material for shipping of a wide range of products. While the company faces stiff global competition from Asia, the cost of shipping a higher quality, highly dense material into the U.S. gives Prime Materials an advantage.

The entire manufacturing process, from mixing to pressing, is handled in the Batavia plant.

It also manufactures foam for its parent company, Batavia-based P.W. Minor, which makes stylish shoes for people with diabetes or arthritis or who simply want a comfortable shoe.

The relationship with P.W. Minor may be heading in a new direction in the coming months, according to Western. Prime Materials is all grown up and the firm may have the opportunity to mature into an independently owned company in its own right. Western is in talks with investors now and if that goes through, Prime Materials’ ability to create many more good paying jobs will be greatly increased.

And finding good people, Western said, will be a key part of Prime Materials' success.  He thinks Genesee County, with its own skilled workforce and Batavia's location between Rochester and Buffalo, will help the company find good people. He said his goal is to build a company with a solid reputation in the community, which will help bring in and retain career-minded workers.

Roughly 15 people lost good-paying jobs this week at Batavia-based Graham Corp.. The across-the-board cuts were a necessary belt-tightening measure in the midst of a lackluster economy.

That's according to Vice President and Chief Financial Officer Jeff Glajch, who confirmed the rumored layoffs this afternoon.

"I feel sorry for the workers," he said. "But we needed to adjust to the marketplace in this sluggish economy. Things aren't getting worse, but they aren't getting better either."

It's the second round of job cuts this year. Slightly more than 10 percent of the engineering and manufacturing company's workforce was eliminated in January. 

That amounted to about 30 jobs at a time when the company was facing a 40-percent loss in revenue, the CFO said. Nonetheless, in May it received Empire Zone tax incentives.

It is the rare, if not the only, publicly traded company in Batavia, with offices and a production plant at 20 Florence Ave.. It has been in business since World War II.

It engineers and makes vacuum and heat-transfer equipment that has broad applications, from making synthetic fibers, petroleum products, electric power and fertilizer, to processing food, pharmaceuticals, paper and steel. Half its good are sold abroad.

Things were going great guns for Graham by mid-2008, when it made Business Week's list of the fastest-growing small companies.

China and other foreign markets' thirst for oil in 2007-08 created a robust demand for Graham's goods. Orders placed then continued to have a postive impact on the company's finances over the first three fiscal quarters of 2008-09 (the company's fiscal year runs April 1 through March 31).

At its peak, it had more than 300 employees and its stock was trading at a high of $50.98 a share. Its stock closed today at $14.68 a share.

As with other industries, the orders tapered off and the forecast today is a question mark. Looking ahead, the CFO said he hopes there won't be pink slips come December, but "I can't promise anything, we have to wait and see."

Press release:

Washington, DC - U.S. Senators Charles E. Schumer and Kirsten Gillibrand urged the House-Senate Conference Committee to include $350 million for the U.S. Department of Agriculture to help New York farmers struggling during the dairy crisis in the final Agriculture Appropriations Bill.  Senator Bernie Sanders of Vermont authored the provision that was included in the Senate version of the legislation. 
 
“Our dairy farmers are hurting.  A large step was taken when we convinced Secretary Vilsack to increase prices paid to farmers, and this is an important second step.  We need more to ensure that our dairy farmers survive this crisis and we will continue working to make sure that they do,” Senator Schumer said.

 
“During these tough economic times, this increase will bring some much needed relief for our farmers,” said Senator Gillibrand, the first New York Senator in 40 years to serve on the Senate Agriculture Committee. “While this is great for New York's dairy farmers, this is only a temporary solution to the fundamental problems with the dairy pricing system.  I will continue to work for a long term fix for our farmers.”
 
New York farmers are facing a dairy pricing crisis. According to the USDA it costs a New York dairy farmer $18.82 to produce a hundredweight of milk. Yet in July the average New York farmer received only $11.60 per hundredweight, though a number of farmers reported receiving even less.  The Milk Income Loss Contract (MILC), which was designed to be a safety net when there is a large price discrepancy, has not been able to adequately protect New York’s dairy farmers. As a result, New York farmers have been forced to either take on massive debt to cover their costs or go out of business.
 
In their letter, Senators Schumer and Gillibrand joined with 27 of their Senate Colleagues, writing, “America needs a strong, diverse dairy industry to feed our nation and keep rural communities thriving.  If retained in the final Agriculture Appropriations Conference Report, the funds provided by this amendment can be utilized by Secretary Vilsack to provide relief to America’s dairy industry.  These funds are crucial to helping hasten the recovery of farm milk prices this fall.”
 
The Agriculture Appropriations Bill is now being reconciled by the House-Senate Conference Committee, before final passage in both chambers, and sent to the President to become law.

What helps rural communities grow: entrepreneurship.

Entrepreneurs -- people who start and run their own businesses -- create jobs, restore and fill vacant buildings, contribute to the community with their time, resources and money, and support their fellow small business owners through mentoring and patronage.

Daily Yonder took a look at communities in rural Oklahoma and found the communities doing the best economically had strong entrepreneurship. They also emphasized their downtowns, diversified their business base and focused on community strengths.

As I wrote the other day, Batavia has a lot going for it and there is an impressive number of entrepreneurs starting and expanding businesses locally.

But we can always use more. And the area has resources to help, from the BID, to the city's revolving loan program to the Chamber of Commerce and BEST Center (which offers small business help) at GCC, and, of course GCEDC.

Maybe it's time for you to start a business. All it takes is a good idea and a willingness to work hard. If you're successful, the rewards are much more satisfying than working for somebody else. Trust me.

So you hear there are no jobs in Batavia, and companies don't want to do business here, etcetera. The carping sometimes seems ceaseless.

Me, I'm a glass-is-half-full kind of guy.

And I think most of the entrepreneurs who have invested in Batavia and Genesee County are the same sort of people, which is why this job ad posted today caught my eye:

Career Opportunities - Growing Company in Batavia is searching for hard working, reliable employees for all aspects of manufacturing.

We are conducting open interviews Friday 10/2/09 from 9:00am-12:00pm.

Imagine, a local company doing so well in Batavia that they have to conduct their own job fair. The ad makes it sound like there are at least six openings, and from the job titles, I'm betting a few if not all of them pay "a living wage" (to use the oft-cited term for what makes a good job).

The company is Prime Materials Corporation, 6 Treadeasy Ave., in the City of Batavia.

The last time somebody left a comment asserting that nobody wants to do business here and all the businesses are leaving, I pointed out some counter examples, which I'll note again: Kravings Kafe and Great Kutz both just opened in Valu Plaza; Ken Mistler is readying two new businesses and planning a third; There's one newish business on Ellicott Street and another store coming; A Canadian company is opening a new location downtown; Mancuso Corp. is investing a substantial amount of its own money (not just the RestoreNY funds) into the Masse Gateway Project; Clor's Meat Market greatly expanded its operations by moving to a new location; people complain about the open store fronts on Main Street, but all of them have ongoing interest from potential businesses for those locations. And I'm sure I'm leaving out other new businesses and expansions.

Not to mention that there are several hundred businesses thriving in the city and several hundred more throughout the county.

For me and Billie, we consider Batavia a great place to base our own business. If we didn't, we wouldn't be here. That's a lot of things I could do or places I could be if I didn't see Batavia and Genesee County as a great opportunity.

The bottom line: the pessimism about Batavia and Genesee County as a place to do business is unwarranted and it's contradicted by the actual business activity in town.