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Harley could cut 400 jobs to keep York County plant
By Jim T. Ryan
10/28/2009 5:18 PM


Harley-Davidson Inc. could cut jobs from its York County plant to keep it in Central Pennsylvania.

The company rejected union proposals to overhaul and keep non-core functions at the plant and discussed those talks with employees today, said Pat Sweeney, a company spokeswoman.

The Harley plant in Springetsberry Township employs about 2,000 people and is the company's largest factory.

The company wants to outsource work in its chrome plating, subassembly, small parts stamping and machining production to its network of suppliers, Sweeney said. The union proposal did not go far enough to do that, instead relying on an overhaul of those non-core functions to keep them in house, she said.

That would be too complex with Harley's core business restructuring, she said. The core business includes motorcycle assembly, paint and parts fabrication.

"If we try to do everything it puts the entire restructuring at risk," she said.

The number of jobs cut hinges on contract negotiations, Sweeney said.

Harley's union, the International Association of Machinists and Aerospace Workers Local 175, is scheduled to vote on a new contract in December.

Tom Santone, a district representative for the union, told The York Dispatch the plant could lose more than 400 jobs through the outsourcing of non-core jobs.

Once Harley and the union have a new contract, the company will determine how that affects the restructuring, Sweeney said.

The company prefers to stay in York County, Sweeney said.

The company was evaluating other sites around the country citing inefficiencies with the plant.

Union president David Bunnell had said the company needed to cut about $100 million from its annual operating costs.

Harley's share are traded on the New York Stock Exchange under the ticker symbol HOG.

CAEDC approved to be state lender
By Jim T. Ryan
10/28/2009 2:12 PM


The state Department of Community and Economic Development has approved the Cumberland Area Economic Development Corp. to be an area lending organization for state-backed loans to businesses.

Carlisle-based CAEDC, also known as Cumberland County Economic Development, applied with the state in September to be a lending agency for state-backed Small Business First and First Industries Fund loans, which help small companies and manufacturers buy equipment and build their business.

The approval will allow CAEDC to be a lender for Small Business First and the First Industries Fund. It was not immediately known when the group will begin lending.

"We're looking forward to partnering with the commonwealth on economic development initiatives," said Omar Shute, CAEDC's executive director.

He declined to comment further because CAEDC is waiting on additional approvals from the state.

CAEDC still needs approval from the Pennsylvania Industrial Development Authority to be an industrial development corporation and make authority loans, said Theresa Elliot, a DCED spokeswoman. The authority's next meeting is Nov. 4 at which time it will review CAEDC's application, she said.

CAEDC will be the second lending agency in Cumberland County.

The state re-certified the Harrisburg Regional Chamber & Capital Region Economic Development Corp. in July to be a lending organization in Cumberland and Dauphin counties.

"The decision was made and it is what it is," said David Black, president and chief executive officer of the chamber and CREDC. "We'll collaborate with them where we can and move forward from here."

CAEDC applied to be a lender because it said the chamber and CREDC were underserving Cumberland County businesses. Black said that wasn't true because his organizations offer more than just two loan programs to businesses in the county.

This item was modified from its original version to correct that the approval allows CAEDC to be a lender for Small Business First and the First Industries Fund, and to correct that CAEDC needs approval from the Pennsylvania Industrial Development Authority to be an industrial development corporation and make authority loans, said Theresa Elliot, a DCED spokeswoman.

York's White Rose Bar & Grill expands again
By Jessica Bair
10/28/2009 12:22 PM


On the heels of a five-month facelift, the White Rose Bar & Grill in downtown York is expanding once more.

Work began last month to build two larger rest rooms, a waitress station, a cooling system and a garage storage area for the restaurant's catering services, said Tom Sibol, president of the White Rose. The project is a result of the company's growing clientele base following the renovations it completed during the first half of the year, he said. Work is expected to be completed by Thanksgiving.

"We're really starting to grow so that's why we feel the need to increase our capacity," Sibol said.

Between February and June, the White Rose elevated its outdoor dining areas, brought in a third bar and cosmetically upgraded the inside and outside of the facility. The project increased the restaurant's capacity from 280 to 300 seats. It also allowed the business to hire an additional 20 people, bringing the total employee count to 62, Sibol said.

Sibol would not say how much was invested in either project.

"(The first project) came at a time when the economy was at its worst," he said. "I just felt there was a need to get aggressive and just make the place cosmetically appealing for the person driving by to not drive by but to stop."

Enginuity completes expansion
By Paula Holzman
10/28/2009 12:35 PM


Cumberland County-based Enginuity Energy LLC has opened a 9,000-square-foot expansion intended to allow for the company's growth and to showcase its focus on green energy and sustainable building practices.

The renovated building, at 180 Silver Springs Road, houses a conference facility known as the Energy Center, as well as Enginuity's service division and warehouse operations, President and Chief Executive Officer Jim Mooney said.

The Energy Center includes a 1,500-square-foot conference room equipped with multimedia capabilities, as well as kitchenette and cafeteria. The company wanted a way to demonstrate the latest technology it's employing, but decided, given the rapid pace of innovation, that a virtual showcase would make more sense, Mooney said.

Other features include environmentally friendly finishes, such as bamboo, and high-efficiency air conditioning, Mooney said.

Enginuity is opening the center to be used free of charge by nonprofits when not in use by the company, he said.

The project cost $900,000, of which $300,000 came from a low-interest loan from the Pennsylvania Industrial Development Authority, Mooney said. Expansion will allow Enginuity to add about 20 positions, he said.

The expansion is 200 yards away from Enginuity's main offices at 203 Lynndale Court, Hampden Township. Enginuity is a commercial and industrial mechanical contractor.

This item was modified from its original version to correct that Enginuity's center can be used free of charge by nonprofits when not in use by the company.

HIA passenger traffic down 2 percent in September
By Jim T. Ryan
10/28/2009 11:45 AM


The number of passengers departing and arriving at Harrisburg International Airport declined 2 percent in September compared with a year ago, the Susquehanna Area Regional Airport Authority said today.

Total passengers in the month equaled 100,156 people, down from 103,477 last year, according to the authority, which operates HIA in Lower Swatara Township, Dauphin County.

Commercial traffic declined by about 1,100 passengers, or less than 1 percent. That segment of the airport's business was buoyed by passenger increases at Continental Airlines, Delta Air Lines, AirTran Airways and United Airlines, according to the authority.

Continental saw the biggest increase: 5,691 passengers, or 155 percent more than last year, according to the authority.

The largest decline from the year-ago month was a 2,413-passenger drop because there were no military or charter passengers in September, according to the authority.

Last year there was a large military deployment that left from HIA, airport spokeswoman Stephanie Gehman said.

The authority also operates Capital City Airport in York County, Franklin County Regional Airport near Chambersburg and Gettysburg Regional Airport in Adams County.

Tower Q3 earnings up by almost $1M
By Eric Veronikis
10/28/2009 11:20 AM


Harrisburg-based Tower Bancorp Inc. today reported third-quarter earnings of $1.7 million, or 30 cents per diluted share, up from $711,000, or 26 cents per diluted share, during last year's third quarter.

Tower, the parent company of Graystone Tower Bank, completed a stock offering during the third quarter, which bolstered the bank's performance, Tower Chairman, President and Chief Executive Officer Andrew Samuel said in a statement.

Tower partnered with Graystone Financial Corp. earlier this year. The partnership, and conversion of systems from the partnership, has helped make the company more efficient and is producing cost savings, Samuel said.

Tower shares are traded on the Nasdaq under the ticker symbol TOBC.

Armstrong Q3 profits increase, sales fall
By Paula Holzman
10/28/2009 11:02 AM


Lancaster County-based Armstrong World Industries Inc. late yesterday reported third-quarter earnings of $64.4 million, compared with $38.9 million in the year-ago quarter.

Third-quarter earnings per diluted share totaled $1.12, compared with 68 cents in the year-ago period, according to the firm.

Analysts had estimated earnings per share of 45 cents, according to Yahoo! Finance.

Third-quarter earnings included a $46 million non-cash tax benefit.Net sales for the quarter reached $753 million, down 19 percent from sales of $929.6 million in the year-ago quarter.

Armstrong, located in Manor Township, manufactures flooring, ceiling and cabinetry products. Its shares are traded on the New York Stock Exchange under the ticker symbol AWI.

Metro reports Q3 loss, updates stock offering results
By Jessica Bair
10/28/2009 11:49 AM


Metro Bancorp Inc. reported a third-quarter net loss of $490,000, down from a $3.4 million profit in the same period last year. The loss per diluted share was 8 cents, down from a profit of 52 cents per diluted share in the year-ago period.

Metro Bancorp is the parent of Metro Bank.

Analysts estimated earnings of 5 cents per share, according to Yahoo! Finance.

The Dauphin County-based firm this week said it faced higher costs because of its rebranding and the move of back-office services to a new provider, according to a company statement. The company also set aside more money for potential loan losses.

Metro also raised $77.9 million as a result of its common stock offering, the statement said. The firm initially raised $70.7 million by selling 6.3 million shares at $12 per share. Metro underwriters exercised an option to buy an additional 625,000 shares, which raised another $7.1 million.

The firm continues to prepare for its potential acquisition of Philadelphia-based Republic First Bancorp Inc., the statement said. The all-stock deal was valued at $114 million when it was announced in November. The deal is expected to close in the fourth quarter, pending regulatory approval, the statement said.

Shares of Metro, formerly known as Pennsylvania Commerce Bancorp Inc., are traded on the Nasdaq under the ticker symbol METR.

TOP NATIONAL & INTERNATIONAL HEADLINES
By news wires
10/28/2009 8:12 AM


BUSINESS: Volvo Cars says China's Geely preferred bidder
Click here to read the full story.

U.S.: Democrats struggle to find unity on health plan
Click here to read the full story.

WORLD: Gunmen storm UN guest house in Kabul, 12 dead
Click here to read the full story.

OUT OF THE ORDINARY: Ga. woman scares off burglar by acting like a dog
Click here to read the full story.

BLOG UPDATE: the gadget cube
By Andréa Maria Cecil
10/28/2009 11:55 AM


Google Maps Navigation beta for Android 2.0 unveiled

Have you heard?

Google has introduced Google Maps Navigation - in beta - for devices using Android 2.0, the company's mobile operating system.

Click here to continue reading and to comment.

QUESTION OF THE WEEK
By CPBJ Staff
10/28/2009 9:47 AM


As some rate caps expire at the year's end, has your company shopped around for the best electricity rates? Why or why not?

Click here for Yes.
Click here for No.

Comments may be published. If you wish to comment, please include your name and the county where you live. The deadline to respond is 10 a.m. Tuesday, Nov. 3.

Your vote only will be counted once.

Results will be published in the Friday, Nov. 6, edition of the Business Journal.

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