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Climate ripe for small business starts

A recent study shows Pennsylvania is the 12th best state to start a small business due to state incentives and loan availability.

A local financial advisor thinks part of that is the strong regional bank presence here.

Parker Marsh, financial advisor for Stonebridge Financial Group, said regional banks are more likely to lend to small businesses than larger, national banks, making the business climate attractive.

According to the study by Lendio, using the most recent data from the Bureau of Labor Statistics, Census Bureau, and Small Business Administration from 2016-2023, a record number of small businesses are opening nationally, and Pennsylvania is the No. 12 best state to start a small business.

Lendio said 10 million small businesses have opened in the last two years with annual revenue reaching $13.3 trillion, according to the Small Business Administration. However, only 48.9% will survive five years as owners battle inflation, recession fears and colossal shifts in how Americans work and live.

Gus Faucher, chief economist for PNC Financial Services, said while there is optimism among entrepreneurs, with a mild recession expected later this year, some people may hesitate to start a new venture.

However, he said many are confident they can increase prices and profits as the economy is expected to pick up by early 2024.

In its findings, Lendio said 54.3% of Pennsylvania small businesses survive five years, there are 81 incentive programs, corporate tax rates are 8.99%, companies received $6.4 million in loans per 100,000 residents, and 48,125 educated workers moved into the state.

“It seems more clients are willing to open a small business than they were five to 10 years ago,” Marsh said.

That may be because people had more savings and were making more money coming into the pandemic, so they have more capital to invest, he said.

“Through COVID, and even now, savings rates are better than when the economy bottomed out in 2007-2009, and people are ready to make investments,” Marsh said.

Faucher is a bit less optimistic, saying while the region has seen some startups, Pennsylvania has less people in the age range where they are willing to step into a new venture.

“People in their 30s and 40s tend to start businesses,” he said. “Pennsylvania is lacking in that demographic,” Faucher said.

In fact, his research shows that many people in that age range are leaving the state for employment.

People looking to start a business look at Pennsylvania because costs are lower than other states, Marsh said. He cited lower taxes and office space costs. And government programs like the State Small Business Credit Initiative are attractive.

Faucher said he gets a sense that some small business startups are born out of the pandemic when people were working from home and looking to do something else.

March agreed, saying people are happy to be out of the pandemic and may be looking for something different than their traditional job.

“The pandemic made it okay to take a lower income to be one’s own boss,” he said. “Some people start a business to create a lifestyle over income.”

Since the pandemic, Faucher said he is seeing startups in the tech industry, where there is less of a trend in the retail, leisure and tourism industries.

The biggest barrier to success is the labor market, both agreed, which is a national issue.

“The employment issue is multi-faceted,” Marsh said. “There are fewer employees with Baby Boomers retiring and the lack of legal immigrants, which businesses rely on.”

And while it is easier for U.S. citizens to find jobs right now, they are demanding more pay, which cuts into a company’s bottom line, Marsh said.

“We’re hoping that this clears up in the next few years,” Marsh said.

On the positive side, Marsh said, small businesses can find funding, build relationships and build revenue, which makes the prospect attractive.

Air Products expands reach in Malaysia

Air Products is building two nitrogen plants in Malaysia that it said will strengthen its position in the country and increase capacity to meet market needs.

The company, which has been serving Malaysia for nearly 50 years, said it will build, own and operate the two plants in Penang’s Bayan Lepas Free Industrial Zone and Batu Kawan Industrial Park and further extend its pipeline network in both areas.

“Air Products has a long-standing presence in Malaysia with a leading position in the Northern Region. Our latest investment in this fast-growing industrial district demonstrates our ongoing commitment to the country’s sustainable growth,” said Ramani Velu, Air Products’ Southeast Asia president. “We are dedicated to growing with our customers along their growth and sustainability journey with our safety, reliability, efficiency and excellent service.”

Air Products currently has two advanced air separation units in the Prai Industrial Area and a comprehensive pipeline network that covers Prai Industrial Area, Bukit Minyak Industrial Area, Penang Science Park, Batu Kawan Industrial Park, and Valdor Industrial Area.

To support growing customer demand, Air Products said it will build a nitrogen plant at its greenfield site in Batu Kawan Industrial Park, which is home to a host of manufacturing companies and integrate the plant into its existing pipeline network.

The company will also build a new nitrogen plant in the Bayan Lepas Free Industrial Zone to serve the fast-growing demand from the electrical, electronics and other manufacturing industries. Air Products brought its first nitrogen plant in the zone onstream in 2021, the company said.

By converting hauled-in liquified nitrogen to gaseous nitrogen supply via pipeline, Air Products brings greater reliability and cost-effectiveness to customers, especially those with high-volume demand, the company said. This conversion also helps customers reduce carbon emissions and improve sustainability.

Lancaster firm claims top spot among PA-based accounting firms

Lancaster-based RKL LLP ranks first in Pennsylvania and 57th nationwide in the latest roundup of the 100 largest CPA and advisory firms from industry publication Accounting Today.

RKL’s 2023 national ranking, based on prior year revenue of $113.16 million, is five spots higher than its 2022 position. The firm also ranked as 10th largest in the Mid-Atlantic, up five spots from last year’s regional tally.

“2022 was another year of success and innovation here at RKL, as we continue to apply our capabilities and expertise in new ways to address evolving management and financial needs,” said RKL CEO Ed Monborne. “We’re grateful for the trusted relationships with our colleagues, our clients and our communities, which make accolades like this possible.”

In 2022, RKL expanded its geographic footprint, with new offices in Franklin and Adams counties. Last fall, the firm launched a new entity, RKL Virtual Management Solutions, and a reimagined spectrum of wealth-focused services, RKL Private Wealth.

RKL Virtual changes daily management of core functions, like accounting, finance and HR, into improved performance and results, the company said. RKL Private Wealth takes a unified approach to life and legacy planning for high-net-worth individuals and families, with a lineup of financial planning, tax, investment and advisory solutions.

At the core of RKL’s next-level approach is a commitment to others and the firm’s guiding values, RKL said. The RKL team aims to be bold, caring and collaborative as they serve clients, grow as professionals and people, and give back to our communities.

Proactive and comprehensive service from RKL advisors earned a world-class satisfaction rating from the firm’s clients on a 2022 survey, while innovative service development creates compelling growth opportunities for RKL team members.

Company signs 115,000-square foot lease in Reading Distribution Center

An affiliate of Endurance Real Estate Group LLC announced the signing of a 114,550-square-foot lease with Can Corporation of America Inc., a subsidiary of The Giorgi Companies Inc., at the Route 61 Distribution Center, 184 Tuckerton Road, Reading.

The lease with “Can Corp. continues our strong leasing activity within our Reading Industrial Portfolio,” a statement from Endurance said. The CBRE team of Paul Touhey, Sean Bleiler and Abraham Kromah represented Endurance in this transaction.

Endurance acquired the Reading Industrial Portfolio in February 2022. The largest building in the group is 184 Tuckerton Road, with 392,030 square feet. The building is 100% occupied, “in large part due to Reading’s strong labor pool and prime location to exceptional highway infrastructure that places six of the top 10 U.S. (metropolitan statistical areas) and 60% of the Canadian population within a one-day truck drive,” the statement said.

“This specific space was leased prior to launching a full-blown marketing effort, which speaks to the strength of the market and lack of functional product currently available to tenants,” said Albert J. Corr, senior vice president/principal of Endurance.

Formed in 2002, Endurance Real Estate Group is based in Radnor. Since its formation, the company has acquired and developed over $1.3 billion of assets totaling 20.6 million square feet and sold over 11.7 million square feet with a combined value of nearly $1 billion. Endurance also owns and operates a portfolio totaling over 5.3 million square feet consisting of 54 buildings.

Paula Wolf is a freelance writer

Penntex Construction continues expansion with Mechanicsburg site

Penntex Construction continues its expansion with the opening of a Mechanicsburg office Wednesday.

The Philadelphia-based commercial and industrial construction firm, with offices in Allentown, said the office at 5001 Louise Dr., Suite 101 in Mechanicsburg, will serve as a home base for its Harrisburg-area team members and provide space for growth.

“Our team’s experience across the Central PA region goes back more than 20 years. While we have had a consistent presence working at jobsites around the area for many years, we’re excited to now have a central location for both our team and clients that further demonstrates our connections to the region,” said Penntex President Jim Hoolehan.

The addition marks the company’s third Pennsylvania location.

“Penntex’s unprecedented growth over the last eight years, including the addition of over 50 team members and revenue growth of over 400%, has been led by a strategic focus on continuing to evolve to best meet the needs of our clients and partners,” said Hoolehan.

In December 2022, Penntex moved into the company’s new expanded Philadelphia headquarters to 460 Norristown Road, Suite 310, Blue Bell.

It opened a Lehigh Valley office at 7535 Windsor Drive, Suite 201A, Allentown in 2017.

“Our promise of Building Better is guided by commitments to strategically growing our team in the areas where we build to best serve our clients and continually investing in the communities we serve,” Hoolehan said.

“We look forward to the new opportunities this office presents to grow our connections in and support of the Harrisburg and Central PA region.”

Air Products to further expand, open facilities in Buffalo, Edmonton

Allentown-based Air Products announced plans Monday to establish new Project Delivery offices in Edmonton, Alberta, Canada, and Buffalo, New York.

A world-leading industrial gases company in operation for over 80 years, Air Products is focused on serving energy, environmental and emerging markets, a release said.

“Given the increasing number of projects in the United States and Canada, and the evolving footprint of our industrial gas business, additional offices in these locations will place our business in a strong position,” said Anthony Buzzeo, Air Products’ general manager – Americas. “We have strategically located these new execution offices close to our project sites, which has several benefits including access to a strong technical talent pool and proximity to several distinguished engineering schools.”

The Buffalo office will initially have approximately 75 employees, and the Alberta office will include over 40 employees. The Global Engineering and Manufacturing Technology Equipment offices will be a cross-functional space including executives, engineering, product, process gas, and air separation unit product line functions. The expansions will further strengthen collaboration between Air Products’ existing technical and large-project teams in the United States (Allentown, Houston), Europe (Hersham (UK) and Netherlands), Asia (Shanghai, Nanjing) and India (Pune, Vadodara).

The Alberta facility will make Edmonton the center of Canada’s hydrogen economy and “set the stage for Air Products to operate one of the most competitive and lowest-carbon-intensity hydrogen networks in the world,” the release said.

These two hydrogen projects are among several announced by Air Products and already in execution around the world.

Paula Wolf is a freelance writer

Passion pushes Allentown company’s growth

Kate Beers in Smooth Gear – Photo courtesy of Smooth Gear –

Allentown native Nick Beers found a niche and turned it into a growing business.

Smooth Gear, a lifestyle clothing company in Slatedale, Washington Township, Lehigh County, not only designs and prints a line of clothing and sneakers but provides printing services for others looking for custom jobs.

Smooth Gear weathered the COVID-19 pandemic and is growing revenue year over year. Beers, who still works a fulltime job, said he hopes to go fulltime into this venture in the next two to three years.

Last year, the company grossed $35,000 which was up from $25,000 in 2021 and $15,000 in 2020, he said.

“Most of the revenue comes from the custom printing side. That allows us to continue to grow our line of clothing and sneakers,” Beers said.

In fact, Beers said he started with printing jobs for 10 shirts with a one-color design. Now, he takes orders for 500-600 shirts with multi-color designs.

“A week ago, I got an order for an 11-color design which proved to be a challenge, but because of the design, we were successful,” he said.

Chad Holschwander, wearing a Smooth Gear jacket, is the design creator – Photo courtesy of Smooth Gear –

The idea for a line of clothing came from a project in a high school graphic design course where Beers designed and screen printed a T-shirt with his nickname “Smooth” on it. “I really liked having my own brand,” he said.

Admitting he is not the graphic designer; he enlisted the help of his cousin Chad Holschwander to do the design work. The two went to Drexel University together where they continued to design, print and sell clothing heavily influenced by hip hop, sports, sneaker and streetwear cultures.

After graduating, Beers moved to Mechanicsburg where he continued to grow the business in his basement with a one-color screen printer. He said after a short time, he was out of space.

He and his wife, Kate, bought a house in Slatedale from Holschwander, who refurnishes properties. “I bought the property because the warehouse was there,” he said.

The warehouse, which Smooth Gear refers to as Smooth Gear Creative Lab, is three stories with room for Beers’ new six-color screen printer and sewing equipment. He said it also has room for photo shoots to market his clothing line.

The business, since 2014, has grown through word of mouth. Beers said he made a move at the end of last year to grow the business through direct sales by attending trade shows and pop-up shops.

“We did a pop-up at Corporate which is a sneaker boutique in Cincinnati, Ohio,” he said. “It was a marketing effort really, but we were also hoping for sales.”

Beers said his wife is pushing the marketing aspect of the business in hopes of getting the Smooth Gear name out.

“Our target audience for the clothing brand and sneakers is the 16-35 age demographic. A subset being people who are also interested in fashion, athletics and the sneaker culture,” he said.

“We created our own silhouette, so it’s exclusively a Smooth Gear brand sneaker,” Beers said that he puts his designs on.

Looking forward, Beers said the company is looking to get into retail stores to increase exposure to the brand.

“This is our passion,” he said. “Sometimes I look back and see what time and money I’ve put into this and wonder if it’s worth it. But when I travel and see people wearing our stuff, it definitely is.”

LVHN buys Venel Institute to expand educational capabilities

Dr. Robert Barraco, chief academic officer for LVHN, shows off the lab at Venel Institute that will be used to train physicians, residents and fellows – PHOTO/CRIS COLLINGWOOD

Lehigh Valley Health Network has bought the Venel Institute in Bethlehem to expand its educational capabilities.

Dr. Robert Barraco, trauma surgeon and chief academic officer for LVHN, showed off the anatomical research and educational facility Wednesday that will allow current physicians, residents and fellows to learn new procedures on cadavers.

“This adds a whole new dimension to learning we haven’t had before,” Barraco said. “This gives us innovations in teaching that will make us the best we can be before practicing.”

Barraco said LVHN is expanding its educational programs to address the critical staffing needs in the health care industry. The addition of the institute will also give the medical school access to more high technology and offer a variety of modalities and techniques.

He explained that the use of cadavers gives practitioners real-life experience using new techniques and instrumentation before bringing the procedures to patients.

The facility has a 60-seat auditorium for lectures, a small room for procedures and the lab, which has room for 15 tables for larger groups. The lab is equipped with video monitors so practitioners can see how procedures are to be done as they are learning.

The Venel Institute, named for the “Father of Orthopedics” Dr. Jean-Andre Venel (1740-1791), will also offer outreach programs to high schools for students interested in a health care career. The institute has been offering programs to area high schools throughout its 13-year history.

Barraco said Venel will complement LVHN’s new state-of-the-art Center for Healthcare Education in Center Valley which is slated to open next month.

“This will really allow us to tailor the educational content and method to a group and its needs, whoever that group may be,” he said.

Along with the Center for Healthcare Education, Venel could serve as a potential training ground and education facility for LVHN’s institutes, including Lehigh Valley Orthopedic Institute, Lehigh Valley Heart and Vascular Institute and Lehigh Valley Institute for Surgical Excellence.

Venel Institute will also be part of LVHN’s medical school program run in partnership with the University of South Florida (USF) Morsani College of Medicine in Tampa, which has about 56 students per year, he said.

“Our partnership with the USF Morsani College of Medicine sets us apart, and the addition of Venel will enrich an already top-notch learning experience for our students,” Barraco said. “The addition of Venel will help make them as ready as they can be for their residencies.”

Alloy5 names first COO

Bethlehem-based Alloy5 has named Architect Vanessa dela Torre as its first chief operating officer.

In her new role, dela Torre will lead the workforce and manage resources, ensuring efficiency while providing high levels of customer satisfaction, the company said. She began managing operations as Alloy5 doubled the size of its staff in 2022.

“We’re writing our own playbook,” Alloy5 President Michael Metzger said. “Alloy5 is a non-traditional firm. We have created a unique office structure that supports our creativity. Vanessa is key to our success.”

Dela Torre is leading design of three essential projects in the Lehigh Valley: renovations of Lehigh Valley Academy Regional Charter School in Bethlehem; Third Street Alliance’s Pool-to School early learning conversion in Easton; and improvements at Resurrected Life Community Church and School in Allentown.

She is also developing a municipal campus master plan in Silver Spring Township, Cumberland County. Dela Torre previously designed Easton’s new North Fourth Street parking garage as well as renovations of two Nazareth Area elementary schools and Seven Generations Charter School in Emmaus.

Dela Torre volunteers with Big Brothers Big Sisters of the Lehigh Valley and Monocacy Farm Project. She is a graduate of Pennsylvania State University and holds a master’s in historic preservation with a certificate in ecological architecture from the University of Pennsylvania. She and her husband live in Bethlehem with their daughter.

St. Luke’s Warren Campus buys New Jersey plaza; plans expansion

St. Luke’s University Health Network’s Warren Campus has purchased Hillcrest Plaza in Phillipsburg, New Jersey – PHOTO/PROVIDED

St. Luke’s University Health Network’s Warren Campus has purchased Hillcrest Plaza in Phillipsburg, New Jersey to expand services there.

“Our acquisition of Hillcrest Plaza underscores St. Luke’s commitment to the Phillipsburg community,” said Trevor Micklos, president of St. Luke’s Warren Campus. “We continue to invest in New Jersey, which benefits our community by providing more convenient access to top-quality healthcare and additional services and programming.”

The acquisition of the shopping plaza, located at 755 Memorial Parkway, will add more than 220,000 square feet to the 92,000 square feet St. Luke’s owned, bringing St. Luke’s ownership to 95% of the facility.

St. Luke’s currently operates Coventry Family Practice and several specialty practices, including bone and joint, pediatrics, endocrinology, weight management, ENT, cardiology/vascular, balance center and general surgery, the health network said. There is also an outpatient lab and fitness and sports performance center.

David M. Herold, St. Luke’s assistant vice president, business development and strategy, said that St. Luke’s will use the newly acquired space to expand the existing practices, as well as to bring in new specialties and services for area residents.

“This acquisition also includes rehabilitating and revitalizing the buildings to bring them up to St. Luke’s University Health Network standards and assure best utilization of space,” Herold said. “Hillcrest Plaza has been a valuable resource for the community and St. Luke’s is pleased to be able to invest in making improvements to the facilities. We look forward to broadening the services we provide to the Phillipsburg and the greater Warren region.”

Allentown payment processing firm makes easy work for large venues

Rendering of the elevator lobby for Shift4’s new headquarters in Center Valley – PHOTO/PROVIDED

Shift4, an integrated payment processing firm in Allentown said it has seen explosive growth as the world of commerce is changing.

And Tuesday, Shift4 landed a contract with The Chickasaw Nation to process payments for dozens of venues, including WinStar World Casino and Resort, the world’s largest casino.

Taylor Lauber, president and chief strategy officer for Shift4, said the company, which was started in a basement in Far Hills, New Jersey by Jared Issacman, CEO, now employs 2,100 people globally with 600 in Allentown.

The company moved to Allentown because of the talent pool and Lauber said it is preparing to move to Center Valley within the first six months of next year to accommodate its continued growth.

Shift4 provides payment technology called SkyTab for merchants ranging from casinos to table restaurants and hotels to stadiums.

“These venues have lots of places to pay throughout their facilities and we connect them all safely,” Lauber said.

But even more importantly, the company allows the merchants to accept all kinds of digital payments on one platform. Lauber explained that globally, there are a multitude of platforms for electronic payments and Shift4 allows merchants to accept them all easily.

The company has seen a year-over-year 52% growth and 15% employee growth. In fact, it added 400 employees in the third quarter of this year, he said.

Lauber said digital payment has been growing for years but exploded during the pandemic. “We take all the devices and deliver them in one platform. That is our shining star,” he said.

The company grew through strategic mergers and acquisitions to allow it to use the multiple payment platforms around the world. Lauber said they have made 21 such acquisitions in the last five years.

“We power $.25 trillion through the platform and $250 billion worth of commerce flows through us each year,” Lauber said.

“We are rarely a recognizable brand by design because we want our customers’ brands to shine,” he said. “We work behind the scenes.”

Shift4 works with about 40% of hotels, 30% of table restaurants and all UPS stores. “When we began to diversify into stadiums and casinos, we saw real growth,” he said.

In fact, in early 2020, the company worked with zero stadiums and this year, it is in more than 120.

The large venues work with hybrid technology, he explained. “If you visit a theme park and want to pay in a modern way, we do that.”

From ordering tickets to buying food at concession stands, or even from a seat, Shift4 handles the payments. It is also set up to process payments for online merchandise and online gaming, Lauber said. All on one platform.

“It used to be the Visa, Mastercard, Discover, American Express way of payment,” he said. “Now, there are all types of payment methods, like PayPal in the U.S. Other countries have their own forms of payment and that can be daunting for a company to manage.”

Lauber said the bigger the merchant, the bigger the problems they face when processing payments. “We like complex because we make it simple.”

Good Shepherd offers financial support for employee ideas

Emily Lyter (left), administrative director of Good Shepherd Learns, Creates and Research, walks with Kandis Jones (center), director of Good Shepherd Learns, and Amanda Clark (right), director of Good Shepherd Creates, on Good Shepherd Rehabilitation’s South Allentown campus – PHOTO/PROVIDED –

Employees at Good Shepherd Rehabilitation Network are taking ideas and turning them into concrete tools and actions.

Emily Lyter, administrative director of Good Shepherd Learns, Creates and Research at Good Shepherd Rehabilitation Network, said the network is looking to harness employees’ enthusiasm, natural curiosity and deep dedication by offering them an opportunity to research their ideas and turn them into actionable plans that can help patients get better.

Emily Lyter

To that end, the initial Good Shepherd Innovation Grant of $200,000 provides financial support and development opportunities for projects that may define the future of rehabilitation, she said.

The project got underway in July. Lyter said all employees, whether clinical or nonclinical, have the opportunity to apply for the program which provides mentorships that enable employees to learn about business plans and technology.

“We want to support our employees and their ideas,” she said. “The grants provide them with the opportunity to engage in research they may not otherwise be able to.”

Good Shepherd collaborates with colleges and other research facilities. The first round of projects involves 45 employees with two project coaches.

One example, Lyter cited, is pressure mapping to determine the best way to sit in a chair. “If you sit in a chair too long, pressure can increase,” she said. “There is no information right now, so a team is looking at how long a person can sit in a position before issues arise.”

Another project is looking at how art can be used as a therapy tool, especially for younger patients. Lyter said in occupational therapy, often a patient is asked to move pegs around a board. “Many are not engaged in this,” she said. “But if they can dance or paint, they will be engaged, and outcomes will be improved.”

Artists teach therapists to use art to make tasks meaningful. Lyter said this is being looked at for autism patients to improve the social connection as well. “It’s fun and serves a purpose,” she said.

The program is geared toward engaging employees and allowing them to grow by teaching them how to go about developing an idea as well as creating new concepts and tools.

Lyter said when an employee or group of employees have an idea, the grant allows them to develop preliminary data. They write a business plan and then can apply for outside funding to continue developing the data, she said.

The coaches help with creating the business plan and grant writing – anything the project needs. “This helps employees grow and learn new things. This is about the individual. We have a lot of caring people and without this program, their ideas would have nowhere to go.”

Lyter said Good Shepherd patients rely on technology to function. That can be as low key as using devices such as an Alexa for text to speech to high tech equipment like robots that can help feed someone.

Many of the projects in the second round of grants will focus on improving or creating technology such as this, she said.

“The program is paying off,” Lyter said. “We expect it will continue to grow because the projects address real needs.”

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Company signs 115,000-square foot lease in Reading Distribution Center

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