Business
Heath care costs, taxes top Pennsylvania business woes
PITTSBURGH — Pennsylvania’s small businesses say rising health care costs, along with the recession and business and personal taxes are the biggest challenges they will face this year, according to a recent survey.
“It really confirms that in Pennsylvania, we need to zero-in on health care costs and taxes,” said Thomas Henschke, acting president of the SMC Business Councils, a Churchill-based trade association that conducted the Small Business State Opinions survey in February. SMC represents about 5,000 businesses throughout western and central Pennsylvania.
About 71 percent of the 250 businesses that responded to the survey said health care costs were their biggest challenge. More than 70 percent said that high business and personal taxes were a moderate-to-severe challenge to their business.
Increases in health care costs — ranging between 7 and 12 percent a year — are a “huge problem” for small business that isn’t being addressed by politicians in Washington, said Peter Cady, president of Command Systems Inc. of Oakmont. The company operates Advanced Mining Service, which repairs and sells coal mining equipment.
“You can’t pass those costs along. Nobody wants to hear that your health care costs went up,” Cady said.
In response to a 23 percent jump in health care costs four years ago to cover about 55 employees, Command Systems moved to a high-deductible insurance plan, which makes it partially self-insured. Command Systems pays 99 percent of the insurance costs for its employees, Cady said.
In addition to health care, the poor state of the economy was cited as a severe challenge by about 45 percent of the respondents.
“Even before the recession, Pennsylvania was a very difficult place to operate a business,” compared to the neighboring states, Henschke said.
The survey was released the same day that President Obama announced his latest version of health care reform.
“That’s politics. This is reality,” Henschke said. “Proposed reforms change daily, and you can’t find anything that is going to lower costs.”
Small-sized employers often believe they are overpaying for health insurance for employees. But self-insurance for their work force is really not available because the pool of covered employees is “too small to spread the risk out,” said Vincent Wolf, executive vice president of Cowden Associates Inc., a Downtown-based health care benefits consulting firm.
Health care costs are a major concern for businesses, which is driving their need to make changes in health care plans, said Lorin Lacy, principal for the health and productivity practice at Buck Consultants Inc., a Downtown-based human resources consulting firm. Those changes include revising cost-sharing between employees and employers and the use of wellness programs, Lacy said.
- Business
-
-
Court: No benefits to worker who damaged equipment
Commonwealth Court has supported the findings in an unemployment compensation case, and the conclusion that a former employee of a local company was not entitled to benefits.
Bruce R. Taylor was fired May 8, 2009, from G.W. Becker Inc., Hermitage, after a lathe he was moving from a truck to the company’s Grove City plant fell off a forklift and was destroyed.
-
Under new management — Ill. company takes over SV mall
The Shenango Valley Mall in Hermitage is under new management.
Chicago-based Urban Retail Properties LLC has been awarded the contract for management and leasing services effective immediately, according to a news release issued Tuesday.
-
FNB earns 16 cents a share in 2nd Q
FNB Corp. had a “solid” second quarter, the Hermitage-based financial company’s president and chief executive officer said Monday.
“I’ve very pleased with the quarter. We made 16 cents (per share),” Stephen J. Gurgovits said. “It just turned out to be a very good quarter.”
Loans and deposits are up and expenses are stable, he said.
-
Grant to pay for land study
Penn-Northwest Economic Development Corp. has received a $129,360 planning grant to perform a market analysis of the 218 acres Mercer County owns at Interstate 80 and Route 19 in East Lackawannock Township, said Douglas Thomas, chairman of Penn-Northwest’s sites committee.
A study will be performed to determine the site’s best use, the possible positioning of buildings, what kinds of buildings would be appropriate and how utilities can be extended onto the site, Thomas said Wednesday.
-
Planning begins now for future business incubator
Although construction has only just begun to build a technology center in Hermitage’s LindenPointe technical business park, it’s not too soon to plan the mission and function of the business incubator side of the center.
Debra Steiner, executive director of the Gannon Small Business Development Center, Erie, told Penn-Northwest Development Corp.’s board Wednesday that incubators function much like parents do with children.
“You need someone who will make day-in and day-out contact with the tenants,” she said.
-
Company files patent suit over truck fender design
Jones Performance Products Inc. of West Middlesex has filed a federal design patent infringement suit against a competitor over a truck fender.
Jones, of 1 Jones Way, said it received a patent for an “ornamental arc design” fender for installation of some models of big rigs in 2007, and sells it to customers and distributors.
Bad Ass Parts of Louisville, Ky., ripped off the design and has been selling its own version, according to the lawsuit filed last month in U.S. District Court, Pittsburgh. -
Rep says tech training key
Historically, American manufacturers have paved the way in technological and scientific advances.
But over the years foreign producers have eaten away at what used to be a distinct American advantage. U.S. Rep. Kathy Dahlkemper said she wants the government to bankroll scientific advances to help American producers get back on track.
-
Aqua plan helps some pay their water bill
Aqua Pennsylvania Inc. is reminding customers that its Helping Hand assistance program is available to low-income families who find it difficult to pay their water bills.
The Helping Hand program offers customers a payment plan to pay down arrears and ensure their water isn’t turned off; an opportunity for customers who make payments on time to earn a monthly credit toward their arrears; and a conservation kit to help customers curb usage and therefore, reduce their bills.
-
Local bankers getting steady refinancing business
Local bankers say more people want to refinance their mortgages to save money.
With interest rates hovering in the 4.5 percent range for a 30-year loan, it’s a deal too good to pass up, bankers said.
-
‘Heartbeat of Clarion’ to stop
CLARION, Pa. (AP) — There’s a hum here, soft yet ever-present.
The noise is drowned out during the din of the day, but late at night the sound of the Owens-Illinois glass plant reverberates through this town of 6,000 people.
Mayor Andrea Estadt calls it the “heartbeat of Clarion,” an enunciation from a plant that has been a centerpiece of community employment and pride for 105 years.
But when the glass plant closes July 1, Estadt said, it’ll be silent here.
- More Business Headlines
-
Court: No benefits to worker who damaged equipment
