Partnering to push for rail-parts contracts
Joe Diurno stands in his West Babylon workshop with a prototype of the MTA Help Point which provide help and assistance if a passenger is in need. His company, Power Resources International, of West Babylon is one of some 100 Long Island companies hoping to benefit from a new initiative by the Long Island Forum for Technology to start a rail industry on the Island. (Dec. 9, 2011) Credit: Steve Pfost
As the little guy in big business deals, Joe Diurno always worries about being left out, or dealt with disparagingly.
Diurno, president of Power Resources International Inc. in West Babylon, which builds software and hardware that monitors equipment at railroad substations, hopes big companies and big government agencies will treat his business differently in the future.
That's because Power Resources is joining forces with other Long Island companies that make railroad parts to compete together for big contracts.
The first step comes Wednesday, when Diurno and about 100 other Long Island executives attend the kickoff meeting for a small-business program run by the Long Island Forum for Technology at the Morrelly Homeland Security Center in Bethpage. The program aims to help the businesses work as teams.
"This LIFT initiative is very important," Diurno said. "As a small company, we have very little visibility in terms of the mega-dollars that are being let out by the big railroad companies. Usually we're relegated to playing third or fourth tier. People will say, 'I'm buying this from you, and I'll pay you when I want and you don't matter to me.' "
In September, LIFT was one of just 11 organizations nationwide to receive a $250,000 U.S. Small Business Administration grant to help small companies. LIFT president Frank Otto said the organization decided on a strategy that puts several small companies together. LIFT also decided, Otto said, to go after contracts to build parts -- brakes, sensors and the like -- for the railroad industry because "it seems to be hot these days."
The meeting Wednesday will be the first since LIFT got the grant. LIFT can apply for second and third rounds of SBA financing. Total grants are capped at $500,000.
Ken Bauer, former president of the Long Island Rail Road who is now heading what LIFT calls the Long Island Rail Suppliers Alliance, said 100 LI companies have the capability to make railroad parts. The alliance will build a database identifying those companies and then reach out to train them to join forces to compete. Bauer said he hopes an initial contract will be won by a team of companies early in 2012.
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