TMVBJ.COMTMVBJ.COM

BUTLER VIEWPOINT 5

GIOTTO STORY 2

THE LIST 7

TMVBJ BRIEFS 3

INDEX

The Mohawk Valley Business Journal269 W. Jefferson StreetSyracuse, NY 13202 Register @ www.tmvbj.com to receive

your daily dose of business news TMVBJ.COMTMVBJ.COMTMVBJ.COMTMVBJ.COMTMVBJ.COMTMVBJ.COMTMVBJ.COMTMVBJ.COM

In print • On-line • In-person

Vol. XIV • No. 1 January 24, 2014 • $2.00

TMVBJ.COMTMVBJ.COM

BUSINESS JOURNALV A L L E YM O H A W KBUSINESS JOURNAL

Presorted StandardU.S. Postage Paid

Syracuse, N.Y.Permit # 568

THE LIST: MOHAWK VALLEY COLLEGES & UNIVERSITIES / 7

Serial Entrepreneur: Frank Giotto builds his 10th business. Page 2.

Addition: D’Arcangelo merges with Canastota firm. Page 3.

Oneida Savings Bank: Diversification turns sleepy, little bank into community powerhouse

BY NORMAN POLTENSONJOURNAL STAFF

ONEIDA — One year after the Civil War ended, residents of Oneida established the Oneida Savings Bank (OSB). Chartered in New York state, the corporation was structured as a mutual sav-ings bank, whereby the deposi-tors were the bank’s owners.

Serving clients in Oneida and Madison counties, OSB collected deposits, paid interest, and fi-nanced residential mortgages for 113 years, when the banking world sud-denly turned upside down.

Determined to wring rampant in-flation out of the economy, then Federal Reserve chairman, Paul Volcker, slowed the growth of the money supply. Between 1979 and 1981, he also raised the federal-funds rate from 11 percent to 20 percent. The prime interest rate hit 21.5 percent in June 1982. “The recession was a … [double-

whammy],” says Eric E. (Rick) Stickels, the current president and COO of Oneida Savings Bank who joined the bank in 1982. “The industry was already grappling with deregulation, which was en-acted in 1980. The recession of 1981, coupled with deregulation, forced 1,617 financial institutions, of which 747 were savings-and-loan associations, to close or seek FDIC assistance between 1980 and 1994.”

In July 1982, Congress enacted additional, deregulation legislation

authorizing banks to offer money-market accounts, removed restrictions on real-estate lending, and relaxed the loans-to-one-borrower limits. Not surprisingly, there was a rapid expansion of real-

estate lending, just at a time the real-estate market was collapsing. Where once the savings-and-loan banks represented a stable sec-tor, it now faced competition from

BY NORMAN POLTENSONJOURNAL STAFF

“It’s not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” — Charles Darwin

UTICA — Darwin’s theory applies equally to organisms and enterpris-es. Just ask any business person today wrestling with the rapid pace of change. To some it’s a threat; to others it’s an opportunity.

Gerard T. Capraro sees op-portunity as he adapts Capraro Technologies, Inc. (CTI) to the new economy. “In 2011, CTI gener-

ated half its sales from government, the other half from commercial [sources],”

says the company president and senior scientist. “With the Department of Defense cutbacks beginning in 2011, it’s now 90/10 [in favor of commercial].”

Capraro, majority stockholder in

the operating company, just com-pleted 20 years in business. CTI, located in a 5,000-square-foot, for-mer SBU branch bank and GVH building at 401 Herkimer Road, is an engineering, information-technology (IT) firm that employs 10 and generates $1.5 million in revenue annually.

“We have expanded our com-mercial business by focusing on IT infrastructure and on software de-velopment,” notes Capraro. “Our technology experts act as our cli-ent’s IT department or as an exten-sion … [of the client’s department].

CTI’s state-of-the-art data center benefits companies of any size with their hosting, cloud computing, disaster-recovery, or surveillance systems and offers a range of sup-port for the medical community, including HIPAA compliance and meaningful-use EMR solutions, for example, OpenEMR.”

Capraro Technologies also helps its clients develop and im-prove their web offerings. “On the development side, our engineers can maximize your search-engine-

See ONEIDA SAVINGS, page 4

Capraro adapts to Department of Defense cutbacks

NORMAN POLTENSON/THE MOHAWK VALLEY BUSINESS JOURNAL

Gerard T. Capraro, left, president, and James D. DeLude, right, COO, stand in the boardroom of Capraro Technologies. The 20-year-old company has expanded its commercial business to replace the paucity of defense contracts.

See CAPRARO, page 6

2 • The Mohawk Valley Business Journal January 24, 2014

By NormaN PolteNsoNJournal Staff

ORISKANY — The Greeks called it “suner-gia.” Today, we call the word “synergy,” meaning “cooperation” or “working togeth-er.” In business, it generally relates to the cooperative interaction of acquired subsid-iaries or merged entities. For Frank Giotto, it’s the driving force behind his business enterprises. Not content to manage nine businesses, he incorporated his 10th last May.

The new corporation, called Oriskany Arms, Inc., is a boutique firearms company. Located in Giotto’s Fiber Optic Research Park in the town of Oriskany, Giotto’s latest creation is currently restricted to producing non-functional prototypes of its version of the popular Colt 1911 pistol. “We are just waiting for a dealer’s license from New York state,” says Giotto, the irrepress-ible entrepreneur and sole stockholder. He says the license “should be received in February or March. That means produc-tion can begin in April.”

Giotto is utilizing a 5,000-square-foot building, of which his pistol assembly and testing requires 1,500 square feet. The gun components are manufactured by another Giotto enterprise, called Fermer Precision, Inc., which has manufactured gun parts since its founding in 1947 and was granted a federal firearms license in 1997. Giotto bought Fermer in July 2011. “They [Fermer] have the experience and

capacity to produce the Colt 1911 parts, and Oriskany [Arms] can assemble them using our existing facility and supervisory experience,” notes Giotto. “That’s what I mean by synergy.”

Oriskany Arms projects manufacturing between 1,000 and 5,000 units in the first year, depending upon demand. “Oriskany will need four to five new employees ini-tially, and Fermer will have to add an-other three to four,” says James Rabbia, president of Oriskany Arms and the vice president of operations at Giotto’s Fiber Instrument Sales, Inc. Rabbia previous-ly worked at Remington Arms in Ilion, where he was a manufacturing engineer and quality manager before assuming the role of plant manager. Rabbia, who holds a mechanical-engineering degree from Syracuse University and an MBA from the Lally School of Management & Technology at Rensselaer Poytechnic Institute, joined Giotto Enterprises in 2010. Born in Utica, he and his wife have six children.

Oriskany Arms at first will aim to attract consumers, rather than police forces.

“We are initially targeting recreational users, especially gun collectors and target shooters, and additionally, those concerned about home security. At a later date, we may shift our focus to security forces, such as police departments.”

Even though the company is only pro-ducing prototypes, it has already begun to market the guns.

Oriskany Arms showed off its wares at the Shot Show, held Jan. 14-17 at the Sands Expo and Convention Center in Las Vegas. The company went to Vegas “to get our name out to the [professional] com-munity and line up three to five good-sized distributors. Oriskany [had] a booth at what is the largest trade show of its kind in the world. The Shot Show features 1,600 exhibitors and draws more than 60,000 industry professionals [from all 50 states and 100 countries] involved with shoot-ing sports, hunting, and law enforcement,” Giotto says.

“Oriskany Arms has also retained reps in Phoenix, [Arizona] and Tennessee to reach out to the larger dealers,” Rabbia adds,

“and we are planning to exhibit at regional shows in 2014, in addition to the national show. We are also relying on the company website (www.oriskanyarms.com) to alert both distributors and dealers, as well as the general public. For now, our focus is strictly on the domestic market.” To aid the company’s marketing effort, Rabbia and Giotto are working with Rick Uselton, a manufacturer of custom pistols in Franklin Tenn. under the company name Uselton Arms, Inc. Uselton, who claims that a majority of Colt 1911 purchasers immedi-ately replace factory parts with aftermarket parts, is consulting with Oriskany Arms on its marketing and production.

Fermer Precision started as a tool-and-die shop after World War II. Giotto bought the company to provide his group of compa-nies a computer-numerical-control (CNC) production facility capable of producing metal-working and related solutions. The 65,000-square-foot plant is located in Ilion. The president is Stewart Bunce, who has worked at Fermer for more than three decades. At the time of Giotto’s purchase, Fermer employed 40. Today, it employs 70, working two shifts. In 2012, the company acquired 16 additional machining centers and is now one of the largest CNC machin-ing facilities in Upstate, capable of ma-chining ferrous and non-ferrous materials. Fermer’s customers include the Carrier Corp., Goulds Pumps, Magna Powertrain Systems, G.W. Lisk Co., and Remington Arms.

Classic gun“The Colt 1911 is a classic and still very

popular,” says Giotto. “Even though there are a number of manufacturers like Colt, Ruger, and Remington and the market seems to be saturated, our model fits a niche which is above entry-level and offers a good price-value. While Colt 1911s sell for between $400 for entry models and $5,000 for custom models, our pistol is priced in the $700 to $750 [retail] range. The gun offers a custom feel at a production price. Also, the gun is 100 percent American–made, and ammo is reasonably priced. That’s why we chose the Colt 1911 as our first product, and chose this time to start production: We have the greatest gun salesman in history — President Obama.”

The popularity of the Colt pistol can be traced to its inventor, John Browning, who developed the weapon as a substitute for the revolver. The 1911 was the standard of modern semi-automatic pistols, which rely on bullet-energy to reload rounds housed in a clip. The U.S. Army tested the weapon in 1910 by firing 6,000 rounds from a single weapon over a two-day period. When the barrel became too hot, the gun was im-mersed in water to cool it. There were no malfunctions.

The Army adopted the weapon in 1911 as its standard sidearm. While the military services officially replaced the model in 1985, many special-forces and police units still rely on it as standard issue.

“I chose the company name Oriskany Arms because of the epic battle fought here during the Revolutionary War,” says Giotto. “ ‘Oriskany’ is a name in history that’s syn-

Giotto builds his 10th business, Oriskany Arms

norman poltenson/tHe moHawk valley BUsIness JoUrnal

James rabbia, left, president, and Frank Giotto, right, owner of oriskany arms, display a prototype of the 1911 Colt pistol soon to be assembled and tested at the oriskany plant. Fermer Precision, Inc., another Giotto company, will manufacture the parts.

see GIotto, page 6

January 24, 2014 The Mohawk Valley Business Journal • 3

8.4% VS. 15.1%

Lower upstate uninsured rate means more than 300,000 additional local people have health insurance.

Across upstate New York, the uninsured rate from 2010–2012 averaged 8.4 percent, while nationally 15.1 percent were uninsured. This means that 324,000 more people had coverage here than if our region were at the national rate. We’re proud to offer significantly lower-cost private coverage than the national average, which helps more people afford coverage. In 2012, upstate New York’s under-65 health insurance coverage rate (91.3 percent) already exceeded the federal projection of the post-reform U.S. rate of 89 percent by the year 2023. We’re neighbors helping neighbors build healthier communities.

To learn more visit: ExcellusBCBS.com/AnnualReport

National strength. Local focus. Individual care.SM

A nonprofit independent licensee of the Blue Cross Blue Shield Association

D’Arcangelo accounting firm merges with Canastota sole proprietor UTICA — D’Arcangelo & Co., LLP, a Utica–based accounting and consulting firm, on Jan. 6 announced its recent merger with Harry L. Hood CPA, a sole proprietorship in Canastota, that gives D’Arcangelo an eighth office.

The D’Arcangelo firm didn’t release terms of its merger agreement with Harry L. Hood CPA.

The Hood firm includes Hood, a second certified public accountant, and two additional employees, the

D’Arcangelo firm said in a news release.Its latest office is located at 3210 Seneca

Turnpike in Canastota.Besides Canastota and its Utica head-

quarters, the D’Arcangelo firm also operates Central New York offices in Syracuse, Rome, and Oneida.

It also has offices in Westchester, Poughkeepsie, and Millbrook, according to its website.

Organized in Westchester County in 1950, D’Arcangelo & Co. includes 33 partners and about 120 professional staff, the website says. q

D’Arcangelo accounting firm elects Miller managing partnerUTICA — Scott E. Miller has been elected to serve as D’Arcangelo & Co., LLP’s man-aging partner for the Utica, Rome, Oneida, and Canastota offices, effective Jan. 1, the accounting and consulting firm announced.

Miller, CPA has been with the Utica–based firm for 24 years and had previous experience as a revenue agent with the IRS. He specializes in personal, business, and estate tax law and tax planning and return preparation, the firm said in a news release.

Miller provides accounting, income tax and consulting services to individual clients, phy-sician groups, manufacturers, real-estate de-velopers, construction contractors, retail and wholesale operations, and employee-benefit plans (single-employer and multi-employer union plans).

The D’Arcangelo firm also has offices in Syracuse, Westchester, Poughkeepsie, and Millbrook.

Organized in Westchester County in 1950, the firm includes 33 partners and about 120 professional staff, according to its website.

4 • The Mohawk Valley Business Journal January 24, 2014

commercial banks as well as other S&Ls pressured to find additional income. Saddled with 30-year residential mortgages issued at low interest rates, some S&Ls rushed to finance high-risk developments such as ca-sinos, fast-food franchises, ski resorts, junk bonds, arbitrage schemes, and a variety of derivative instruments.

“When I joined the bank in 1983,” says Michael R. Kallet, president and CEO of Oneida Financial Corp. (NASDAQ: ONFC), the stock-holding company for OSB, “we were still a sleepy, little bank. OSB had just offered checking accounts and adjustable-rate mortgages, but it was difficult to com-pete. There’s no doubt that the bank took its lumps in the 1980s and 1990s.” Kallet was appointed CEO of the bank in 1989, and Stickels assumed responsibility for opera-tions and finance.

Growth strategyDuring the 1990s, the team of Kallet and

Stickels crafted a strategy to grow the bank and diversify its revenue streams. In 1998, they took step one by establishing a mutual-holding company, which, in turn, created a stock-savings bank subsidiary to hold all the assets and liabilities. The parent company owned a majority of the subsidiary and was authorized to sell shares in order to raise capital. “After 12 years of growth and suc-cess, we decided to take step two,” continues Kallet. “In 2010, we shed the mutual struc-ture and created Oneida Financial Corp., a Maryland stock-holding corporation. Our second offering raised $31 million in new capital, of which we have deployed $5 million to date.”

“The funds raised since 1998 have been used largely for acquisitions,” notes Stickels. “We entered the insurance business in 2000 with the purchase of Bailey & Haskell Associates, Inc. Oneida Financial conclud-ed its eighth insurance-agency acquisition in 2012, buying McMahon, Fenaroli, and White, Inc. (d/b/a Schenectady Insuring Agency or SIA). Our merger-and-acquisition activity [since demutualization] also included two banks — the State Bank of Chittenango and the National Bank of Vernon. In 2006, we acquired the Benefit Consulting Group, LLC (BCG) located in [Clay]. BCG, formed in 1983 as Retirement Income Services, focuses on 401(k)-plan analysis, design, and adminis-tration; personal financial services; business financial services; human-resources consult-ing; and health insurance and employee benefits. Altogether, the bank has invested nearly $36 million in acquisitions over the past 13 years.”

In 2008, Oneida Savings Bank created Workplace Health Solutions, a company spe-cializing in offering employers access to networks of independent medical examiners in New York state. The goal is to partner with those providers who commit to timely appointments, give objective feedback on their diagnoses, and offer treatment recom-mendations to return injured workers to the workplace as quickly as medically appropri-ate. “Our growth is not confined just to acqui-sitions,” says Kallet. “We create companies where we see the need for a new product or service.”

Kallet stresses that the goal is not just to acquire and grow. “We need to find a good fit that will help us to leverage our assets and create synergies. The companies we target should be free to focus on selling, while our back office [of IT, marketing, and audit] supports their efforts. In the case of Bailey

& Haskell and BCG, both were vendors to the bank, and we were comfortable that we could integrate the different cultures into the bank.”

The demutualization strategy has wrought significant changes at OSB. “When Mike and I joined the bank back in 1982-1983, we had 35 employees. Today, [Oneida Financial (OFC)] has 365,” says Stickels. “In 1982, the bank’s assets were $130 million. When we … [initiated] demutualization in 1998, our assets were $220 million. At the end of 2013, OSB posted more than $750 million in assets. OFC’s consolidated [annual] revenues [Dec. 31, 2013] were approximately $58 million and our income exceeded $6 million, with most of the growth coming from our non-banking subsidiaries. (Subsidiary income rose 13.6 percent in 2013.) OSB has expanded to 11 full-service offices, and our equity exceeds $90 million, all while remaining well capital-ized. At the time of our secondary IPO in July 2010, shares sold for $8.” Today, Oneida Financial shares trade above $12 (the stock closed at $12.25 on Jan. 21).

The next stepThe day after the SIA deal closed on Dec.

31, 2012, Kallet and Stickels implemented the next step in the strategic plan: they cre-ated a new corporation — Oneida Wealth Management, Inc. “Our major concern is client services,” posits Donald J. Abernethy, Oneida Wealth’s president. “We needed to bring … a common vision … to all Oneida Financial companies offering wealth-manage-ment services: life insurance, wealth manage-ment, the broker-dealer functions, pensions, financial planning, and trust services. A per-fect example of the benefits of this approach is our new, centralized [software] platform that integrates our pension, administration, and trust departments so that we can see all of our clients’ needs and respond. The name ‘Oneida Wealth’ also lets us create a single brand as we expand into new markets, such as Albany and Long Island.”

Abernethy continues, “[In short,] our mission is to implement what we call the Premier Advantage, a trade-marked name for providing a comprehensive portfolio of services to help our clients manage their personal and business needs while reducing their risk. The old model of utilizing multiple services and advisers is confusing and often costly because of overlapping expenses and gaps in coverage. With our new platform, all of our programs mesh seamlessly.”

Abernethy joined Retirement Income Services as a partner in 2003, following a stint at First Albany Securities. A 1994 graduate of Siena College, he holds multiple licenses and is a registered principal broker. Oneida Wealth Management also includes Chasity Jaynes, the company’s vice president and COO. Jaynes was the assistant vice president in charge of transition at Cadaret, Grant & Co., Inc. in Syracuse before joining BCG in 2005. She and Abernethy sit on the Oneida Wealth Management board of directors.

New locationThe growth of Oneida Financial’s

Syracuse–based insurance and financial ser-vices business has forced the company to seek new quarters. “We just announced that we are moving [our 110 employees] from the current North Syracuse [town of Clay] location to a building just two blocks from the Syracuse Inner Harbor,” says Kallet. (COR Development is currently planning to build a hotel, apartments, retail space, and other amenities in the Inner Harbor.) “By late 2014, we hope to occupy 28,000 square

feet in the old Nabisco plant located at 706-716 N. Clinton St. Andy Breuer (Hueber-Breuer Construction Company, Inc.) and Josh Podkaminer (Emhoff Associates) are developing the former bakery into office space for medical and financial tenants.” Abernethy adds that the staff will initially occupy 20,000 square feet, which provides room to grow.

Oneida Financial’s success has been built on a model that closely controls the process. “Ours is a more expensive model than other financial-services companies that outsource many of their functions,” asserts Kallet. “We like to keep as much in-house as we can. We’re convinced that we provide better service … This means a big investment in our technol-ogy. [For example,] we were the first bank north of metro New York [City] to offer online banking. As our mobile usage increased, we deployed new software in 2012 to keep up with the changing habits of our customers.”

Even with the investments in technology, it still comes down to the quality of the staff, according to Oneida Financial’s leader.

“Our ultimate success is based on our people,” Kallet opines. “[Oneida Financial] … has a team of long-term employees with talent. We nurture them and invest heavily in their education. We teach them that change is a constant, and they must be facile in re-sponding to it.”

Oneida Financial’s success is also attribut-able to its management team, which includes Kallet and Stickels; Pierre Morrisseau as the CEO and John F. Catanzarita as the COO of Bailey Haskell/BCG; Abernethy at Oneida Wealth Management; and Deresa Durkee as a senior vice president and CFO, and Russell Brewer as a senior vice president and chief lending officer at Oneida Savings Bank.

Kallet, 62, says Oneida Financial has al-ready put a succession plan in place for the company and for all department heads. “Rick [Stickels] will succeed me, although we have not chosen a date. We have worked together as a team for 30 years, and he is intimately involved in our strategy and execution to diversify and grow.”

Kallet, who started in the 1970s with the Bank of New York, says “[t]here has never been a better time to be a community bank. The public understands and appreciates our role as the economic engine of development in small communities. We understand the communities we serve and their needs, and we believe strongly in supporting them.” Looking back on three decades of radical change in the banking industry, Kallet says “I have never been more optimistic of the future. To me, challenges make us better.”

Kallet, a 1972 graduate of St. Lawrence University and a music major who went on to study at the Berklee College of Music in Boston, has orchestrated a major change at what was once a sleepy bank and is now the community’s economic powerhouse. His ap-proach seems to have avoided improvisation, even though he enjoys jazz, instead following a carefully crafted score that has made his stockholders, employees, and the Oneida community smile.

Contact Poltenson at npoltenson@tmvbj.com

Business by

Equal Housing Lender | Membership restrictions apply | Federally insured by NCUA

Our team of experts in commercial lending, commercial

insurance, employee bene�ts, retirement plans, and specialized

business services is standing by to help your business, large or small.

PEEPS YOU GOT

EXPERTS IN Commercial Lending, Insurance, Employee Bene�ts +

Retirement Planning

ONEIDA SAVINGS: Success has been built on a model that closely controls the processContinued from page 1

“Our ultimate success is based on our people,”

Kallet opines.

January 24, 2014 The Mohawk Valley Business Journal • 5

R ecently, New York Gov. Andrew Cuomo gave his State of the State address, and there are

many aspects of it that I would like to dis-cuss over the coming weeks. The issues include tax relief, economic development, and many others, but this week I would like to discuss education.

There are exciting opportunities devel-oping here in our region, particularly in the Mohawk Valley. The nano- and high-tech industries are growing in our state, and Central New York is one of the hubs. But in order to be prepared for these new opportunities, we need to ensure that our children develop the skills to secure the jobs currently being created.

The governor said “the best long-term economic development strategy is to have the best education system in the world…,” and I agree.

Easily accessible public education that gives students the skills and training to suc-ceed in the job market is critical. Time and time again, public education has proven itself to be the way out of poverty.

Expanded opportunities to study the sci-ences, technology, engineering,, and math-ematics (STEM) are critical to ensuring that the tech-boom is being fed by a pool of talented young workers. The governor emphasized the need to get technology such as laptops, tablets, and broadband in our schools. He has proposed offering a referendum to voters to approve a $2 billion initiative to help struggling schools acquire tools to prepare our children for the emerg-ing technological economy.

I would also like to encourage the expan-sion of trade curriculum in our BOCES system. The rapid growth of high-tech jobs requires a steady source of workers with

traditional trade skills like machining, weld-ing, electrical, and others. The opportuni-ties are great, but our students must have the knowledge and skills to make them marketable in this changing economy.

I am on board with preparing students for these new opportunities, but we cannot forget that a real conversation must take place about the Common Core standards imposed on our children. Parents, stu-dents, educators, and administrators are concerned that Common Core, instead of helping our kids, is in fact stifling their edu-

cational progress.While student per-

formance metrics are designed to measure performance, the real-ity is that each child is different, and forcing them to fit into a mold isn’t helping anyone. Each student is im-bued with unique and extraordinary talents, and it is our responsi-bility to help them har-ness and finesse those skills so that they can be successful.

Marc W. Butler (R,C,I–Newport) is a New York State Assemblyman for the 118th District, which encompasses parts of Oneida, Herkimer, and St. Lawrence counties, as well as all of Hamilton and Fulton counties. Contact him at butlerm@assembly.state.ny.us

Call us at (315) 525-6233or visit www.smartbusinesssolutionsus.comor visit www.smartbusinesssolutionsus.com

$martBusinessSolutions

Computer Crime ConsultingID Theft and Fraud PreventionDon’t Wait to be a “Hacking” News Story. Act Now! Before It’s Too Late! n Are you adequately protected from cyber crime, fraud and ID theft?

n Is your and your customer’s information safe?

n Are you compliant?

n Let us help you protect your business before it hurts your profits.

A Certi� ed Minority & Women-Owned Business

State of the State Dissected: Creativity, STEM, and Skills Needed for Tech-Boom

MARC W. BUTLER

VIEWPOINT

Reach us on the Webwww.bizeventz.com

6 • The Mohawk Valley Business Journal January 24, 2014

optimization capabilities, transform your website, and develop custom apps (applica-tions) using open-source tools to reach the … [public because] everyone wants to be mobile. Our ‘intelligent mobile proxy’ can transform a website and customize it for vir-tually any mobile device. We also developed a product called ‘PocoDoc,’ which reduces the size of Word, Excel, PowerPoint, and PDF files while maintaining their original format. This lets our clients shrink their documents, store, and transmit the files without the need for standard compression.” Capraro also cites security as a growing mar-ket for the company’s expertise.

Capraro next turns to CTI’s government work. “We have performed R&D for the mili-tary for many years,” the company president avers. “Our strengths lie in data and informa-tion management and in signal processing.”

Capraro’s government research dates back to 1966 when, as a civil servant, he joined the Rome Air Development Center (RADC), where he spent 18 years as a project engineer and then as a task manager for the U.S. Air Force. He garnered his signal-processing expe-rience working on the Space Defense Initiative and worked in other areas such as artificial-in-telligence, electromagnetic compatibility, and high-power microwaves. Capraro has a B.A. in mathematics from Utica College of Syracuse University, and M.S. and PhD. degrees in en-gineering from Syracuse University.

In 1984, Capraro left RADC and joined

Kaman Sciences, headquartered in Colorado Springs. Capraro and John Spina jointly set up a Utica office, which served as a think-tank for the company in upstate New York. The office, located at 258 Genesee St., grew to 55 people over the next nine years. After Capraro left in 1993 to start his own company, Kaman sold the Kaman Sciences subsidiary to ITT for a reported $135 million. The ITT office is currently located at Griffiss Business & Technology Park and employs 150.

To take advantage of the rapidly chang-ing business environment, Capraro is as-sisted by another principal, James D. (Jim) DeLude, the company COO and a minority stockholder. DeLude met Capraro at Kaman Sciences, where he worked with him from 1991-1993. He joined CTI 10 years ago.

“We have been able to adapt quickly, because we focus on our strengths,” says the COO. “Unlike our competitors, CTI is a consulting business, not a VAR (value-added reseller). We’re not pushing hardware or bound by quotas from manufacturers … Second, we have unusual depth in our en-gineering talent … Third, we leverage our government research, looking for applica-tions in the commercial field. We know that one size doesn’t fit all solutions, so we’re good at listening to our clients and respond-ing to their needs.” CTI competes regularly with Annese [and Associates, Inc.] and M. A. Polce on the commercial side and M. A. Polce [Consulting, Inc.] and Total Solutions for hosting and cloud services.

DeLude also notes that all of the intellectual

property (IP) of CTI is owned by CTI. “We have the potential of scaling software that we have developed and applying it to other situa-tions,” he says. “CTI is currently working with a marketing company to convert its inventory of IP for use in alternative areas. While our marketing efforts are focused primarily on Upstate, we have clients in New York City, Tennessee, and Boston. CTI is not limited [geographically] in supporting new clients or current clients who want to expand.”

CTI, like many area companies, finds it dif-ficult to recruit new employees. “We reach out to universities like Drexel, RPI, SUNYIT, and Utica College to identify candidates to join the company,” says DeLude. “It’s getting harder to find them. Our best options … [lie] with those who grew up in the Mohawk Valley and have family here. We have tried using a variety of techniques for attracting candidates, includ-ing online and social media, but we have met with limited success.”

Capraro Technologies relies on local pro-fessionals to help steer the company’s suc-cess. “Our banking is [done] through NBT, our legal work is handled by Levitt & Gordon of New Hartford, and Vincent J. Gilroy, CPA is our accounting firm,” says Capraro.

Part of adapting is ensuring the business succession. “Jim [DeLude] will step in and run the company. We don’t have a formal plan or date yet, but the direction of the com-pany is … [assured],” says Capraro, who is age 70. q

Contact Poltenson at npoltenson@tmvbj.com

315.733.0854

RELIABLE IT SOLUTIONSsince 1993

cny

What if all your computerscrashed at the same time?

.comBIT.comBITcny

A comprehensive I.T. Recovery Planprotects more than just your data.

with offices in Syracuse Uticaand

(and it took daysor weeks to restore.)

Co-Location | Desktop/Server Sales & Support | Disaster RecoveryVirtualization/Consolidation | Software Development | Network Security

M O H A W K V A L L E YBusiness Journal

Vol. 14, No. 1 • January 24, 2014

NEWS Editor-in-Chief .......................Adam Rombel

arombel@tmvbj.com

Associate Editor ............Maria J. Carbonaromcarbonaro@tmvbj.com

Staff Writers ........................Norm Poltensonnpoltenson@tmvbj.com

......................................................... Eric Reinhardtereinhardt@tmvbj.com

Contributing Writers ...............Traci DeLoreMei Wang

Production Manager ......................Erin Zehrewebb@tmvbj.com

Research Manager ................. Nicole Collinsncollins@tmvbj.com

SALES

Sr. Account Managers ....Mary LaMacchiamlamacchia@tmvbj.com

Daniel R. Buddiedbuddie@tmvbj.com

Jeff Sydneyjsydney@cnybj.com

Marketing ......................BBB Marketing Inc.

CIRCULATION Circulation Management ...(315) 579-3927

AdmINISTRATIvE Publisher..........................Norman Poltenson

npoltenson@tmvbj.com

Chief Operating Officer .....Marny Neshermnesher@tmvbj.com

Business Manager .................... Kurt Bramerkbramer@tmvbj.com

The Mohawk Valley Business Journal (ISSN #1050-3005) is published six times a year by CNY Business Review, Inc. All contents copyrighted 2013. All rights reserved. No part of this publica-tion may be reproduced without the written consent of the publisher.

CAPRARO: CTI, like many area companies, finds it difficult to recruit new employees

Continued from page 1

onymous with pride, tradition, and honor.” Giotto is referring to the battle fought on Aug. 6, 1777, when the local militia attempt-ed to relieve the besieged Ft. Schuyler (Stanwix), which had been built by the British to protect a critical, water portage against invasion by the French. Ambushed by the British and Indian defenders, the militia sustained losses exceeding half their force. Nevertheless, the militia’s sustained effort broke the spirit of the attackers who subsequently deserted the fort and retreated to Canada.

Giotto Enterprises is comprised of the following companies: Fiber Instrument

Sales, Inc.; The Light Connection; Fermer Precision, Inc.; FIS Blue, in which his Giotto’s daughter holds a majority inter-est; Molding Solutions, Inc.; Force Guided Relays; Energy Efficient Products, Inc.; Max L. Cowen Student Stores; The Mohawk Valley Jet Service, in which he is a 50/50 partner; and Oriskany Arms. Except where noted, Giotto is the sole stockholder in all of his companies.

Giotto Enterprises currently employs 362 and generates $75 million in annual rev-enue. Fiber Instrument Sales, the largest company among his enterprises, exports to 11,000 customers in 110 countries. Giotto Enterprises includes 250,000 square feet of manufacturing and warehousing space,

plus a 15,000 square-foot training center that is used to train 1,000 people annually in fiber optics.

Giotto was born in Oneonta and grew up in Utica. As a youngster, he developed and sold individual pizzas before they were popular, ran a taco stand, and invented a coffee maker that could brew single cups. Driven to create new companies, the new-est addition not only leverages the synergy of his operation, but also diversifies the customer base of Fermer.

It’s only a matter of time before Giotto launches his 11th company. q

Contact Poltenson at npoltenson@tmvbj.com

GIOTTO: Giotto Enterprises currently generates $75M in annual revenue

Continued from page 2

January 24, 2014 The Mohawk Valley Business Journal • 7

THE LISTResearch by Nicole Collins

ncollins@tmvbj.com(315) 579-3911

Twitter: @cnybjresearch

Look for the Largest Employers list in the next Mohawk Valley Business Journal, due out on March 14.

ABOUT THE LISTInformation was provided by representatives of listed orga-nizations and their websites. Other groups may have been eligible but did not respond to our requests for information. Organizations had to complete the survey by the deadline to be included on the list. While The Business Journal strives to print accurate information, it is not possible to indepen-dently verify all data submitted. We reserve the right to edit entries or delete categories for space considerations.

WHAT CONSTITUTES THE MOHAWK VALLEY?For this list, Mohawk Valley includes Herkimer, Madison, Oneida, and Otsego counties.

NEED A COPY OF A LIST?Electronic versions of all our lists, with additional fi elds of information and survey contacts, are available for purchase at our website, cnybj.com/ListResearch.aspx

WANT TO BE ON THE LIST?If your company would like to be considered for next year’s list, or another list, please email ncollins@tmvbj.com

MOHAWK VALLEY COLLEGES & UNIVERSITIESRanked by Full-time Enrollment (undergrad./grad.) 2013-2014

Rank

NameAddressPhone/Website

FT Enrollment:Undergrad./Grad.

PT Enrollment:Undergrad./Grad.

Faculty:Full-TimePart-Time

2013-2014Budget

In-StateTuition

FTEmployees President or Top Official

YearEstab.

1.SUNY Oneonta108 Ravine Pkwy.Oneonta, NY 13820(607) 436-3500/oneonta.edu

5,7955,688/107

260132/128

494274220

$108.5M $5,870 857 Nancy Kleniewski, President 1889

2.Mohawk Valley Community College1101 Sherman DriveUtica, NY 13501(315) 792-5400/mvcc.edu

4,6304,630/0

2,8112,811/0

362145217

$51.6M $3,710 733 Randall J. VanWagoner, President 1946

3.Colgate University13 Oak DriveHamilton, NY 13346(315) 228-1000/colgate.edu

2,8772,871/6

2319/4

34529649

$164.7M $46,060 881 Jeffrey Herbst, President 1819

4.Morrisville State College80 Eaton St.Morrisville, NY 13408(315) 684-6000/morrisville.edu

2,6682,667/1

360182/178

266147119

$43.3M $5,870 442 William Murabito, InterimPresident

1908

5.Utica College1600 Burrstone RoadUtica, NY 13502(315) 792-3111/utica.edu

2,4442,230/214

1,584651/933

378143235

$62M $32,280 401 Todd S. Hutton, President 1946

6.Herkimer County Community College100 Reservoir RoadHerkimer, NY 13350(315) 866-0300/herkimer.edu

2,0552,055/0

602602/0

16767100

$24M $3,740 213 Nicholas Laino, VP forAdministration & Finance

1966

7.Hamilton College198 College Hill RoadClinton, NY 13323(315) 859-4011/hamilton.edu

1,8821,882/0

2121/0

22819038

$154M $45,620 646 Joan Hinde Stewart, President 1812

8.State University of New YorkInstitute of Technology at Utica/Rome(SUNYIT)100 Seymour RoadUtica, NY 13502(315) 792-7500/sunyit.edu

1,6191,424/195

864383/481

18676110

$19.1M $5,870 314 Robert E. Geer, Acting President 1966

9.Hartwick CollegeOne Hartwick DriveOneonta, NY 13820(607) 431-4150/hartwick.edu

1,5761,576/0

3939/0

20111289

$49.9M $38,120 353 Margaret L. Drugovich, President 1797

10.Cazenovia College22 Sullivan St.Cazenovia, NY 13035(315) 655-7000/cazenovia.edu

937937/0

140140/0

1435885

$24.5M $28,900 170 Mark J. Tierno, President 1824

11.USC The Business College201 Bleecker St.Utica, NY 13501(315) 733-2300/uscny.edu

250250/0

120120/0

601545

$0 $6,295 48 Philip M. Williams, President 1896

12.Pratt Munson Williams Proctor ArtsInstitute310 Genesee St.Utica, NY 13502(315) 797-0000/mwpai.edu

120120/0

00/0

281315

$6M $26,000 26 Anthony J. Spiridigloizzi, President 1941

13.Empire State College, UticaSuite 606, State Office BuildingUtica, NY 13501-2812(315) 793-2684 /esc.edu/central-new-york/

8987/2

174136/38

1248

$1.1M $5,870 6 Nikki Shrimpton, Central New YorkCenter Dean

Merodie Hancock, President

1974

Really?In business, the money doesn’t just fall out of the sky. Hard work and a great education can help you succeed. Want to be a manager? An entrepreneur? Get a degree that shows you mean business. Our MBA combines management with technology. Completely online. Accredited by AACSB. Really.

Do you want to succeed? If you mean business, so do we.

(315) 792-7347gradcenter@sunyit.edu

www.sunyit.edu/mba

!

It’s the 40th Anniversary of the Project: SITES Program and we’re looking for our past!

The MVEEC invites local SITES student participants from 1974-2013 to return and speak to the 2014 shadow day students

on March 27th at the Hart’s Hill Inn, Whitesboro.

After 40 years of shadow days, we want to impress upon our students the vastly divergent paths we all took “to go from their seats to our seats”.

Please forward this notice and help us present 40 years of lessons to the next generation of CNY technologists.

Please email any questions to Registration Coordinator Bill Rudge at Rudge44@aol.com

8 • The Mohawk Valley Business Journal January 24, 2014

Presents

nonprofi tA W A R D S

2 1 4Honor that special someone/organization who deserves this recognition!

Nomination deadline: 2/4/13 2013 Community Impact Award Honoree: Food Bank of CNY

2012 Honoree: Catholic Charities

2013 Youth Spotlight Honoree

NOMINATE TODAY!

March 25, 201411:00 AM - 2:00 PM

The Oncenter

Nonprofi t Organizations do not get recognized enough for their programs, leaders and volunteers who make our community stronger.

Award recipients will be awarded for excellence, leadership, fi duciary responsibilities, management practices, creativity and impact.

Contact Joyl Clance at (315) 579-3917 or jclance@bizeventz.com for more information.

Visit bizeventz.com to nominate

Event Date: