When
Manny Gandhi, owner and president of Power Plant Services, Inc., says he
needs to fill about 30 job positions right away, he isn't kidding. Click on
the company's website and the employment opportunities page opens first.
Listed are job postings for inside and outside sales/estimators, saw and CNC
lathe operators, shipping and receiving personnel, department managers and
even a general manager. Interestingly, the web ad garners great results.
Part of the reason for the hiring push is the company's rapid growth during
the past several years. In 1999, 2000 and 2001, Power Plant Services
experienced rapid expansion and 100 percent growth each year. That growth
rate stabilized in 2002, partly because of the shortage of qualified staff
to handle the huge workload.
'We
have been so busy for the past three years, I didn't have
the time to hire and train people," admits Manny. "if people are hired but
not properly trained, quality and production can suffer. Then, a company can
actually lose money."
This
summer, Manny's focus turns to hiring and training. "We've been on a little
growth break," he says. "Now it's time to get back on track."
Job
seekers who click on the employment page will find a summary about the
company and several good reasons why it is a good place to work. "We are a
low‑volume (quantity) job machine shop specializing in power plants, steel
mill and printing industries equipment," the ad reads. "We offer competitive
wages, a 401 (k) plan, health and dental insurance, profit sharing and a
clean environment."
Power
Plant Services operates out of a 42,000‑square‑foot sprawling, brick and
glass building in a manufacturing corridor of Melrose Park. Custom
manufacturing of turbine parts accounts for about 70 percent of the
business; 25 percent is devoted to parts repair, and another 5 percent is
attributed to machining parts for offset printing presses. Day and night
shifts run 24 hours, seven days a week, supplying customers with parts when
they are needed. Sonia Gandhi, who works part time as the sales and
marketing director, points to customer service as one of the main reasons
for the company's success.
'We try
very hard to accommodate our customers' needs and meet their production
schedules," she says.
Power
Plant Services buys unused inventory parts from power plants. The company
sells some thirty turbine parts (and raw material) for turbines, generators
and coal pulverizers. With millions of people dependent upon their power
sources, utilities demand reliable service providers. Power Plant Services
is one of those providers.
Ideas that Work
With
nearly 20 years experience in the industry, Manny was ready when he had the
opportunity to purchase his own company. In 1998, he bought the assets of
the 25‑year‑old Alin Manufacturing Company. Under his expert management, the
business thrived and grew. While that growth has stabilized (15 percent
growth in 2002), the company has expanded its focus.
"We
started out as an existing machine shop, supplying parts and service to
printing companies," Manny says. "However, the product line for power plants
added another dimension to the business."
Support Where It's Needed
Most of
the work required for power plants consists of routine, scheduled
maintenance. Customers are also supported at their own locations. When
emergency repairs are needed, the employees of Power Plant Services respond
quickly and efficiently. The management team has more than 90 years of
combined experience in turbine parts repair and manufacturing. Customer
satisfaction is both a motto and a goal that all employees strive for every
day.
Attracting and Keeping Good employees: A Big hurdle
The
biggest challenge for or the company has been attracting and retaining
wellqualified employees. About three years ago, Manny turned to Allen
Kutchins of KRD to help him with this issue.
"I
realized that I needed the professional assistance of a CPA who could guide
the company and help us manage our growth. One area where we needed help was
in developing an employee benefit package. Allen is not only knowledgeable
and thorough, he assists us wherever and whenever we need help.
Value‑Added Accounting Services
Services provided to the company include annual financial statements and
income tax returns, financial and estate planning, family income planning
including college funding for the owner's two children, QuickBooks@
consulting and business advisory work.
'With
the assistance of Allen and KRD we've improved our efficiency and now
utilize our software to the fullest benefit," adds Manny. KRD staff also
designed and implemented a benefit package for our employees, which includes
a 401 (k) and profit sharing plan.
Scott
Coleman of KRD Financial provides ongoing plan support service to the
participants in the self‑directed 401 (k). A self ‑directed plan with a
choice of mutual funds offers each participant a great deal of flexibility
based on his or her risk tolerance
'To his
credit, Manny cares about his company and wants to provide benefits for his
employees," comments Soon.
As for
the future, Manny anticipates continued growth for his company and a
continuing relationship with KRD
"KRD's
value‑added services have been invaluable to me and my business," he
concludes.
About
those 30 job openings listed on the website Manny is certain they will all
be filled.
Tax
and Business News from KRD
IRA
Options: All the Ways to Save
The
Individual Retirement Account (IRA) has always been a sensible way to invest
for retirement. Recent tax law changes have created a number of new
opportunities that provide even greater flexibility in the way people save for
retirement. Plus, the contribution limits on all types of IRAs have increased.
The new limits are:
2002,
2003 and 2004 $3,000
2005,
2006 and 2007 $4,000
V2008 and
after $5,000
For those
individuals age 50 and older, an additional catch‑up contribution is allowed
as follows:
2002,
2003, 2004 and 2005 $ 500
2006 and
after $1,000
Remember,
only one spouse needs to have earned income in order for both to be eligible
to make an IRA contribution. All individuals with earned income can make some
form of IRA contribution: traditional, nondeductible or Roth. Although most of
us are familiar with the three types of IRAs, here is a brief summary of each.
The
traditional deductible IRA is still a great way to grow your nest egg. You may
deduct contributions (if you satisfy certain requirements), but all
withdrawals are fully taxable. You won't get a tax deduction for a
nondeductible IRA, but the money earned in the IRA will not be taxed until you
take it out. You don't get a tax deduction when you contribute to a Roth IRA,
but the money is tax free when you withdraw it after at least five years. In
other words, you owe no tax on the account's investment earnings.
You are
eligible to contribute to more than one type of IRA; however, contributions
cannot exceed the limit, which is $3,000 ($3,500, if you're 50 or older) in
2003.
Consumer Spending and Personal Incomes Rise in March
Americans
spent a little more money on clothing and food March. The Commerce Department
reported a 0.4 percent rise in consumer spending for nondurable goods, but
spending on big‑ticket durable goods such as cars was slightly down. The
Commerce Department said the March increase followed a lackluster 0. 1 percent
gain in February and a decline of 0.1 percent in January. Incomes rose 0.4
percent in January compared to 0.2 percent in February.
In
comments made on April 30, Federal Reserve Chairman Alan Greenspan said he
remained hopeful the end of the Iraq war will result in stronger economic
growth. In addition, the University of
Michigan
reported that its urv4y of consumer confidence rebounded in April after three
consecutive months of declines.
Catch‑Up 401(k) Contributions
There are
more perks for the 50+ crowd today than ever before. Card carrying members of
the Association for Retired Persons (AARP) get all kinds of discounts at
restaurants, movie theatres, retail stores and hotels. Along with your
membership you can also receive the AARP Bulletin. The publication is chock
full of interesting news, including articles on how to save money for your
retirement. Speaking of saving money for your retirement, Uncle Sam is
offering some perks for seniors too. Individuals age 50 and older can now make
additional catch‑up" contributions to their 401 (k) and 403(b) plans.
For 2002,
the base maximum contribution was $11,000; a catch‑up contribution of $1,000
totals $12,000. ‑ For 2003, the base maximum contribution increases to
$12,000; a catch‑up contribution of $2,000 totals $14,000.
For 2004,
the base maximum contribution increases to $13,000; a catch‑up contribution of
$3,000 totals $16,000.
For 2005,
the base maximum contribution increases to $14,000; a catch‑up contribution of
$4,000 totals $18,000.
For 2006,
and thereafter, the base maximum contribution increases to $15,000; a catch‑up
contribution of $5,000 totals $20,000.
You
cannot do anything at this point about 2002; however, you can increase your
contribution for 2003 to a maximum of $14,000. Please call us with any
questions.
Postal
Rates to Hold Steady
Do you
know how much a 37 cent stamp will cost in the year 2005? It will still cost
37 cents, according to legislation recently signed by the President. The bill
effectively allows the United States Postal Service to hold rates steady until
the year 2006. Thereby giving Americans a three-year reprieve from higher
postal rates. Both the senate and House approved by unanimous conent the
Postal Civil Service Retirement Funding Act of 2003.
The Pace
of a first-class stamp was raised to 37 cents last June, the fifth increase
since 1991.
The
measure grew out of findings last year by the Office of Personell Management
that the USPS was paying too much into the Civil Service Retirement System.
Postal officials said they could hold off increasing rates until 2006 if they
were allowed to lower the conntributions. This bill will correct the
overpayment.
