Essential Product? Or Essentially a Scam?
Corrections or additions?
These stories by Peter J. Mladineo and Barbara Fox were published in U.S. 1 Newspaper
on April 29, 1998. All rights reserved.
Life in the Fast Lane
Top Of PageBloomberg on Bloomberg
Technological changes, Mike Bloomberg predicts,
will make ours a much more open and egalitarian world: “The good
news is that we will all probably keep our jobs,” says Bloomberg.
“The bad news is that everything will be much more competitive.
If you are below the median, in the new world it will be much more
difficult to hide. You will have to improve your skills, and you will
have to make your product better, because barriers of distance, time,
and currency are going away.” As an example, Bloomberg pointed
to the formidable competition that Airbus now presents to Boeing,
once considered indomitable.
Michael R. Bloomberg, CEO and founder of Bloomberg Financial Markets,
spoke this Monday, April 27, at the New Jersey Economic Development
Authority’s networking conference called “Bringing Business and
Capital Together.”
As technology advances and gizmos get easier to use, the need for
technical skills may actually decline, Bloomberg told the gathering
of more than 200 at the Hyatt. “It will be more, not less, important
to know how to read, to have good interpersonal relationships, and
to know how to set up the math problem,” he said.
He opposes putting PCs in elementary and junior high school because
children need smaller class size and interaction with a teacher more
than they need to learn technology that will be out of date when they
enter the work force. “There is nothing about technology that
a sixth or ninth grader could possibly learn that will be useful to
them when they graduate. The thinking process will become more important
in everything we do.”
“Technology will be here whether you go out and buy it or not.
Everything you touch has, or will have, a computer built into it,”
said Bloomberg. These ubiquitous products do not involve products
of the well-known companies that dominate the PC market. “Intel
is a minor player and most of these chips don’t run Microsoft software.”
“The real innovation in your company has not been in the office
but on the shop floor, at construction sites, and in road building.
The same people, with the same level of intelligence, are doing these
jobs that used to do them with a pickax and shovel. Today they do
it with automation.”
Bloomberg proved his point about how technology evolves by using the
VCR as an example. “VCRs have always been a particular annoyance
to me because they have a terrible design. The buttons are tiny and
not backlit. You can’t see them, and your fingers can’t touch them.
You can’t use VCRs for time shifting — you can’t replay `Baywatch’
five minutes later than the program begins.” In contrast, on a
computer disc you can record and play at the same time. “So now
we don’t use VCRs for time shifting, we use them for playing blockbuster
movies.”
Bloomberg offered these views in response to questions from the audience:
Teleconferencing and virtual offices? He compares thehype on teleconferencing to yesteryear’s anxiety about how the telephonewould replace letter writing and going to dinner with customers. Thatpartly came true, he admitted, but though “growth in restauranttraffic has not increased with the economic activity, tickets to sportingevents are still out of sight.”He believes that videoconferencing will be added to every businesscall but plans to find a software program “that will play my pictureso you think I am paying attention, when really I am opening my mail.””There won’t be a lot of working at home. In tough times, to superviseand excite people, you still have to do it interpersonally.”Year 2000 problem? Bloomberg thinks that the change toEuro currency will have a more serious effect on commerce than thecalendar rollover.Automated transactions are working in the securities businessand will never work completely for cars: “One kind of transactionthat will never be automated is automobiles. People like tokick the tires, open the hood, and go for a test drive. People willgo one place for the demo and another place for the transaction. Youwill pay for a test drive or agree to have your service done at thatdealer.The media: Because anyone can get published on the Internet,”All of a sudden people are thinking Matt Drudge is a reporter.That’s like saying the New York Observer is a newspaper.”He used the Monica Lewinsky coverage to show how wrongheaded it isto believe that the press leads the public. “The press thoughtthe public would believe one thing, and they fed the frenzy, but thepublic went in the opposite direction,” said Bloomberg. PaulaJones preceded him in an entrance line recently and, he said, “peoplewere actually hissing at her.”On education. Though it is fashionable to downgrade theUnited States schools, “in Japan the kids are going to schoolseight days a week, and Japan is falling apart.”Immigration. “Almost the stupidest thing that Congressever proposed (second only to its position on the IMF, InternationalMonetary Fund) is to not let in the people we need to fulfill thejobs, people who could be moved almost overnight. We will, nevertheless,let them work via telecommuting.”Employment policies. Bloomberg Financial enjoys a lowerturnover than most businesses, and though it is known for paying well,Mike Bloomberg prefers to think it is because the firm has createda great work environment with good lighting, nice work stations andfree snacks — not an extravagance “when you realize the foodkeeps workers from getting in their cars to drive five miles to eat.”His summary of how to accumulate and keep skilled workers: “Createan environment where people are challenged and can work very hard– good people like doing that — and share the revenue witheveryone from the most junior people up.”Try to take away class distinctions “which are more evident inNew Jersey then in New York. Here, when you drive up, there is a parkingspace by the door reserved for the president. It is telling everybodyelse that they are second rate. And I’m not sure I would want to advertisethat I were not in. I would want that first space empty so peoplerush in early to get it.”Top Of PageLabor Force WorriesAnother speaker at the NJEDA conference, Rae Rosen,senior economist at the Federal Reserve Bank of New York, soundeda loud alarm about the scarcity of skilled labor and warned that businessesneed to take matters into their own hands to get the workers theyneed.”The labor force simply isn’t growing as fast as the demand,”said Rosen. “In five to ten years it will grow at half the growthrates we are used to. Your alliances with community colleges, technicalschools, and training programs are going to be critical. Makeit clear to the community colleges that you need `this program,’ not`that program,’ and do not rely on the United States government.”Rosen told of eight Stamford, Connecticut, manufacturers that wereready to leave the state because of a worker shortage — they werehaving to bus engineers to Stamford from Brooklyn. But the local communitycollege turned on a dime to create a new major for their specificskill set, and these eight firms stayed in the state.Many of those attending agreed with Rosen: “It’s not easy to goout and find employees, and to maintain them,” said Daniel Waltonof Systech Inc., an automated inspection system manufacturer withplans for expansion at Exit 8A.”We are a distance learning software company, and we need moresoftware developers, and also sales and marketing people,” saidJames Scott, chief financial officer of Systems Task Group at 4365Route 1 South.”There was a time when access to credit was the most importantproblem, but priorities have changed,” said Jay Biggins of AreteCapital on Nassau Street. “I would wager that, to business owners,labor and the skill sets required are the most important problems.”Rosen points out that though employment growth may be faster nationally,New Jersey’s labor force is growing nearly two times as fast as NewYork State. “The employment forecast is strong for both New Jerseyand New York City, and this has helped fuel income growth in New Jersey,”said Rosen. “In business services, health, and social servicejobs New Jersey has outpaced the nation. The construction sector isvibrant, in part because New Jersey was overmalled but is now buildingand renovating.”More of Rosen’s conclusions:Manufacturing is New Jersey’s weak area, where it lostemployment more rapidly than anywhere else in the nation. Still, thestate competes well in high technology areas.Median income: New York State has extreme pockets of povertyand wealth, but its median income is below the national average. Incontrast, New Jersey has one of the highest median incomes in theUnited States. “We think that is because you recovered more quicklythan New York,” said Rosen. Also most of New Jersey’s jobs arein the higher pay scale.Immigration policies are critical to the worker populationin New Jersey, where the numbers of workers leaving are matched bythe numbers entering from overseas.Exposure to problems in Asia: New Jersey’s exposure ismuch lower than elsewhere, with 5.1 percent of its Gross State Productresulting from exports compared to 9.3 percent in California. “Becausewe have a diversified economy, we have some insulation from the downturn.In contrast, New York City is highly tied to the financial marketsand therefore more sensitive.”If computer engineers are in short supply, blue collar machinistsare another scarcity. “It will be driven home, if not at the peakof this cycle, then at the next one,” warned Rosen. She advocatessetting up apprenticeships for highschoolers. Instead of dipping icecream for $4 an hour, these students would work in a machine shopfor the same wages.”I came away more disheartened about the state labor force,”said Maxine Ballen, president of the New Jersey Technology Council.”But the state labor department has made a lot of inroads. Weare doing a lot in New Jersey, but nobody knows it.”– Barbara FoxTop Of PageEssential Product? Or Essentially a Scam?If any segment of the population would be ripe for aninnovative credit card, it would be college students. That is thetarget market for the National College Registration Board, foundedby three University of Pennsylvania alumni and recently relocatedto 251 Wall Street. The firm aims to sell debit cards for a fee of$25. In return, the company claims, students get a card that entitlesthem to discounts on many national brands and that “allows parentsto set aside funds specifically for their students’ essential collegeliving needs.”But the company may have promised too much. This past weekend an APstory reported that the NCRB’s offer was “deceptive” and hintedthat the company was a potential lawsuit target. One outraged parentquoted in the article even described the card as a “scam.”Now the National College Registration Board is offering refunds, andtrying to counteract the negative publicity. “A university administratorcalled us a scam. That’s a joke and that really angers us. We’ve beenworking four years on this project. It’s really our blood sweat andtears,” says Matthew Levenson, 23, one of the founders, alongwith Chris Cononico and Mike Vaughan.The NCRB sells the Campus Card, which claims to help students gaindiscounts on meals, books, airline tickets, copy centers, pharmacies,and hair salons. It markets them nationally as a way for parents tomake sure college children have money for meals, books, and essentials.Campus Card also can be used as a debit card if extra money is deposited.”They deposit money that’s federally insured and fully refundableand they can use the card to make purchases,” says Levenson. “It’sa way for parents to monitor money.”But the NCRB, it seems, was borrowing other school’s logos and marketingthe card by sending official sounding letters to first year studentsimplying that the NCRB was affiliated with the school. The Universityof Michigan got wind of the letter, which claimed that the CampusCard was a “student identification card issued to all registeredcollege students” and was “required for many services andpurchasing privileges.” The promotional materials also used alogo from the University of Michigan, which dispatched its campuspolice to investigate the company.Almost immediately, the NCRB offered to give out refunds to “anybodywho was confused” about the offer, says Levenson. “We’re notlooking to go head-to-head with the university system,” he adds.Levenson argues that school officials are wary of the Campus Cardbecause its off-campus offers could potentially detract from salesat school cafeterias. “This has the potential to cannibalize someof their on-campus sales,” says Levenson.The company moved from Philadelphia, where it operated as UniversitySupport Services. “We got about half of Penn participating inour program,” says Levenson.Will this negative publicity hurt? “We’re obviously not happyabout it, but most people understand it. It’s really going to helpcollege students quite a bit.”Peter MladineoNational College Registration Board, 251 Wall Street,Princeton 08540. Matthew Levenson, partner. 609-688-0447; fax, 609-688-0626.Top Of PageLaser EnergeticsIf Robert D. Battis has his way, Mercer County willbecome the epicenter of the profuse laser marking industry, whichis responsible for putting the microscopic lettering on chips foundin electronic devices. His company, Laser Energetics Inc. moved fromOrlando, Florida, to 8,000 square feet at 4044 Quakerbridge Road inJanuary. The company has plans for another major expansion this year.Sometime in late July or early August the firm plans to go publicand start selling stock on NASDAQ. Also, says Battis, the 10-employeefirm will move to larger quarters somewhere in the Princeton areasoon — perhaps into a 40,000 to 50,000-square-foot space, whereit will hire significant additional staff. “Our plan is to makeMercer County the UV laser marking capital of the world,” he says.But that move won’t even be enough to keep up with the chip industry,which some expert says is a $30 billion industry that has alreadychurned out some 3 trillion chips. “Not having enough capacityis going to be the biggest problem for the industry,” says Battis.To see evidence of the kind of work that Laser Energetics does, justopen a stereo, VCR, camcorder, cellular phone, or a watch. All ofthese devices contain ceramic chips, known to laser people as surfacemounted devices (SMDs). All SMDs have markings on them, which areeither applied with ink or burned in with lasers. Laser Energetics’proprietary ultraviolet laser-marking process replaces ink, whichcan be scratched off, says Battis. For laser marking, the ultravioletspectrum works better than infrared, which use more heat and can crackthe chips.Laser Energetics’ machines mark mostly capacitors, resisters, andsilicon wafers, and most of its customers are microelectronics companies(although Battis won’t name them because of non-disclosure agreements).He is also pitching the firm’s laser marking services to the bevyof pharmaceutical firms in this area. “With our experience andpart handling, we are working on a process for marking pills and thatwill hopefully get the attention of Squibb and some of the other pharmaceuticalsin the area,” he says. “We’re developing several types ofnew laser technologies. We work with ultraviolet lasers and we’recoming up with some very compact, laser diode-pumped UV lasers forlaser marking and for laser materials processing.”Currently, Battis claims, Laser Energetics has the capability to printroughly 20 million chips per week using a machine he invented, thePSLM 1000 Ultramark High Speed Marking System, which can mark up to30 chips per second on both sides. “It’s the fastest machine inthe world right now,” he says. “That’s the backbone of themarking side of the business. Using our technology you could actuallywrite your name and address on a human hair.”In his spare time Battis, 39, writes song lyrics, takes in art, andgoes ocean fishing with his two sons, 11 and 7. As an inventor, Battisdisplays abundant state pride. Lasers were invented in his hometown,Summit, by Bell Labs engineers, one of whom was a childhood neighbor.At age 10, Battis’ family moved to this area, and he attended NotreDame High School (Class of 1977) where he was captain of the trackteam, and then Seton Hall University, where he majored in chemistry,and joined its esteemed track and field team. (“When I went toSeton Hall it was a whole new ballgame,” he says. “We stillhave the record for the mile relay.”)After college, Battis worked in a materials sales divisionof Rheometrics Inc., a Piscataway-based materials company. Beforestarting Laser Energetics, he spent five years as national sales managerfor Lambda Physik, a division of Coherent Laser. “Lambda is themost profitable laser company of all time, Coherent is the biggestlaser company in the world,” he says. It was at Lambda where Battisstarted to identify entrepreneurial opportunities. “I ran allover the U.S. populating industrial production lines with Lambda Physikslasers,” he says. “I spent a lot of time doing that and learneda few niches within the industry.”Finding those niches have paid off, so far, Battis maintains. “Wehave no competitor in this part of our business right now. Becauseit’s a process I’ve brought to this industry, we have a niche businessright now and we think the barrier to entry is two to three years.”– Peter J. MladineoLaser Energetics Inc., 4044 Quakerbridge Road,Mercerville 08619. Robert D. Battis, president and CEO. 609-587-8250;fax, 609-587-9315.Top Of PageStart-UpsDPRA, 707 Alexander Road, Suite 208, Princeton08540. Tony Montrone, principal. 609-514-1090; fax, 609-514-0910.E-mail: amontrone@dpra.com. Home page: https://www.dpra.com.Tony Montrone has left Environ, where he was a principal,to join a Kansas-based environmental health and safety consultingfirm, and he has opened an office in Daily Plan-It.Montrone, an economics major at Syracuse, Class of 1973, has an MBAin management from Michigan State. He is married to Lisa Montrone,head of sales and marketing information systems for Bracco Diagnosticson College Road. He spent 12 years at the federal Environmental ProtectionAgency, where he headed the hazardous waste enforcement program andthe groundwater task force, worked for 10 years in the Arthur D. Littleenvironmental group in Cambridge, Massachusetts, and spent 18 monthsas a principal in Environ before opening the Princeton office of thisfirm.Named Development Planning and Research Associates when it was foundedin 1961, the firm has been known by its initials since the early 1970s.It has a strong presence in the midwest and southeast, with 200 employeesdivided among Arlington, St. Paul, Dallas, Denver, Knoxville, andits headquarters in Manhattan, Kansas. “We call it the LittleApple,” says Montrone.Montrone had dealt with DPRG in various capacities since 1975. “Isaw an excellent opportunity to join an environmental consulting firmthat has been in business since the 1960s, and they were looking toexpand their consulting operations into the northeastern United States,”says Montrone.Much of his work is determining the environmental and financial liabilityinvolved in mergers and acquisitions, with the potential for groundwatercontamination that requires costly treatment. “In one deal theestimate of liability was $350 million, but the deal was worth only$300 million,” says Montrone. “It didn’t go through.”Top Of PageExpansionsGilbane Building Company, 3705 Quakerbridge Road,Suite 116, Mercerville 08619. Walter McKelvey, senior vice president.609-631-4000; fax, 609-631-4055. E-mail: wmckelvey@gilbaneco.com.In July the construction firm will expand its northeastern officesfrom 11,500 square feet at University Plaza to 19,000 square feetat Crossroads Corporate Center. Aubrey Haines and Karen Iman of GMHRealty represented the owners, Leggat McCall Properties, and FennellyAssociates represented Gilbane. This office manages construction projectsin New Jersey, Pennsylvania, New York and Delaware. Gilbane’s AdvancedTechnologies Sector (serving national clients in pharmaceutical, biotech,electronics, chemical, and food industries) is also here.Gilbane is the third largest general building contractor in Americaand is headquartered in Providence, Rhode Island. Founded in 1873,it has 130 employees working from this facility.Top Of PageCrosstown MovesSeth D. Josephson Esq., 55 Princeton-HightstownRoad, Suite 204, Princeton Junction 08550. 609-716-7300; fax, 609-716-7401.An alumnus of Stockton State College, Class of 1981, Josephson startedout as an accountant, and then worked in computer sales for ADP, beforegoing to Seton Hall for law school, graduating in 1994. He moved hisgeneral solo practice from Hightstown to Princeton Junction inFebruary. His areas of focus are residential real estate, matrimonial,negligence (representing plaintiffs), and bankruptcies (representingdebtors).First Century Partners, 113 Herrontown Lane, Princeton08540. 609-683-8848; fax, 609-683-8123.Michael J. Myers, the venture capitalist, moved his office from 1Palmer Square to a home office at 113 Herrontown Lane.Principals’ Center for the Garden State, 195 NassauStreet, Suite 12, Princeton 08542. Carol Wilson, director. 609-497-1907;fax, 609-497-1927. E-mail: GSPrincip@aol.com.The continuing education service for school administrators and teachersmoved to 195 Nassau Street from 20 Nassau Street. The organizationis affiliated with the Geraldine R. Dodge Foundation.Top Of PageManagement MovesPrinceton Video Image Inc. (PVI), 15 Princess Road,Lawrenceville 08648. Brown Williams, chairman. 609-912-9400; fax,609-912-0044. Home page: https://www.pvimage.com.Douglas J. Greenlaw, the 47-year-old president and CEO,announced his intentions to step down by year-end. He was named presidentand CEO in January, 1997, and oversaw its initial public offeringin December. From 1994 to 1996 he was president and chief operatingofficer of Multimedia Inc. (which owns broadcast stations, cable systems,newspapers, and a division of eminent talk shows) and supervised itssale to Gannett. He had also been chairman and CEO of Whittle Communications’Venture Division and vice president of MTV Networks.Last week PVI announced it has made a small piece of advertising history.Its live video insertion system, which electronically creates adsto appear on the backstop behind the catcher without actually beingpresent at the game, now includes animation. For the San Diego Padres,the animated image lets viewers see how fast the pitcher is actuallythrowing.During the opening games for the San Diego Padres, ads for Amitronfeatured an animated clock, allowing viewers to see the actual timeof day being periodically updated by PVI’s technology. The animationsystem is also being used for the San Francisco Giants.The animation is not a breakthrough for PVI — the real innovationoccurred when PVI designed the system to insert ads off-camera, whichwas first employed by west coast teams in 1995.New Jersey Department of State, 125 West StateStreet, Box 300, Trenton 08625-0300. 609-984-1900; fax, 609-292-7665.Lonna R. Hooks has resigned as secretary of state, effective June30, to become executive director of the Global Leadership Instituteat Bloomfield College.Top Of PageLeaving TownAerojet General Corporation, 2119 Route 33, LexingtonSquare Commons, Hamilton Square 08690. 609-631-8004. Home page:https://www.aerojetpd.com.This sales office for a custom chemicals firm has closed and inquiriesare being handled by Howard Foote in Sacramento, California. A newphone number is 800-311-9668. For major pharmaceutical firms, it createsformulas for custom chemistry and synthesis, mainly of intermediates,on both a small and large scale.Fedders, 307 College Road East, Princeton 08540.Sam Rao, vice president R&D. 609-987-8767; fax, 609-987-8807.The largest manufacturer of room air conditioners in the nation movedits research and development facility out of 6,500 square feet inCollege Park. Sam Rao had headed up the center, which was workingon nontraditional heat transfer products in a joint venture with China.Armada Art Inc., 3 Nami Lane, Unit 8, , HamiltonTownship 08619. 609-631-9500.The scissors manufacturer moved from Hamilton to downtown Boston.The new address is 142 Berkeley Street, Fourth Floor, Boston, MA 02116.The new phone and fax numbers are 617-859-3800 and 617-859-3808.Vector Marketing, 379 Princeton-Hightstown Road,Cranbury 08512. 609-448-8864.Vector Marketing closed its cutlery sales office. The nearest Vectoroffice can be reached at 732-920-7790.Top Of PageDeathsElizabeth-Anne Murphy, 31, on April 20. She was coordinatorof events operations at Rider.Kimberly A. Bernath, 25, on April 22. She was a secretaryat Star Technical Institute on Carnegie Road in Lawrenceville.William A. Venanzi Jr., on April 24. He was director ofpurchasing for New Jersey Manufacturers Insurance Co.Corrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
