2017 - 2018 ANNUAL REPORT

A MESSAGE FROM OUR PRESIDENT & CEO

Since our inception, Team Pennsylvania has sought to bring the private and public sector leaders of the commonwealth together to grow our collective economy. In this unique structure, businesses and stakeholders from Penn’s Landing to Presque Isle come together with a stated purpose that Pennsylvania can be a national leader in economic and workforce development. This drives us every day and is evident in the work you see in these pages.

We are proud of what we have done over the past 12 months. Whether it was building a new partnership in agriculture or seeking to recalibrate our educational system to be responsive to business needs, we took on big projects that will seek to change our state’s economy for years to come. None of that happens without all of you. Your investment and partnership is critical for Pennsylvania to be, in the words of our founder, Governor Tom Ridge, “A leader among states, and a competitor among nations.”

Yours in Partnership, EDUCATION

In partnership with the Pennsylvania Department of Education and the Pennsylvania Department of Labor & Industry, Team Pennsylvania is working to ensure that businesses have a career-ready workforce, and that students have the resources they need to succeed. 2017 - 2018 CAREER READINESS MINI-GRANT PROJECT

In 2017, the Pennsylvania Department of Labor & Industry awarded Team Pennsylvania a Strategic Innovation Grant of $312,000 to support the With 51 out of the 54 projects reporting on student participation Career Readiness Mini-Grant Project. The initiative sought to support at least regional work and incentivize greater collaboration between education and workforce development at the micro-level. 45,948 students participated in a career readiness mini-grant project across the state Team Pennsylvania partnered with the Pennsylvania Association of

Intermediate Units (PAIU), awarding $30,000 in each of PA’s nine This translates to an investment of just In addition, regions. School districts applied for up to $5,000 of flexible funding 39 out of the 65 % school districts that 60 to support career readiness activities, and 65 school districts received received mini-grants per student have Title 1 schools.* awards. $6.79

* Title 1 is the federal designation for at least 40% of students in the school building living in poverty.

Application of Labor “Industry partners Market Information Investment in STEM appreciated that a high

Approximately 94% of school districts grounded their Science, technology, engineering, and math occupations are school program was being projects in labor market information. Furthermore, over half expected to grow 9.1% annually, resulting in approximately 190,000 developed that could help of school districts indicated that the High Priority Occupation new positions by 2026. Many districts utilized their mini-grant to expand their workforce lists put out by the Pennsylvania Department of Labor & Industry implement new and creative STEM activities, such as building pipeline. They were informed their projects. heat detecting drones for search and rescue teams or organizing computer programming workshops. enthusiastic to get involved and open their business Expansion of Partnerships sites to the students. Early Access to Career This demonstrated that Local Workforce Development Boards acted as critical Programming resources for connections and information, introducing districts to education and industry regional businesses and data. work together toward 71% of school districts 63% High School Industry and business leaders provided students first-hand utilized the mini-grant (9-12) providing students career experience through internships, job shadowing, and to enhance career readiness opportunities.” 43% Middle School pre-apprenticeship programs. readiness activities at the (6-8) elementary and middle Ross Berger, College and Career Post-secondary entities partnered on dual enrollment 28% Elementary School (K-5) Academy Program Coordinator at programs, soft skills trainings, campus tours, and career days. school levels. Harrisburg School District BUSINESS GROWTH & DEVELOPMENT

Pennsylvania must remain competitive in attracting, retaining, and growing new business domestically and internationally. Team Pennsylvania is able to utilize its unique role as a convener between its public and private partners to deploy a variety of opportunities for business growth throughout the Commonwealth. INTERNATIONAL ACCOMPLISHMENTS

Bringing the World to Pennsylvania European Business Development Mission

In September 2017, Team Pennsylvania provided funding and In support of Pennsylvania’s Office of International Business Development (OIBD), Team Pennsylvania coordination in support of the annual Bringing the World to PA led the coordination of a strategic multi-city mission to develop new prospects, engage partners and (BTW2PA) Trade events. This two-week tour around the state multipliers, and conduct retention visits with existing PA investors. From May 23 through June 6, provides PA companies an opportunity to engage one-on-one presentations, meetings, and networking events were conducted in more than 10 unique European cities. with PA’s Authorized Trade Representatives and discuss Working in partnership with the Philadelphia Orchestra in Dusseldorf and Vienna, the team international export opportunities for their products. In total, leveraged its relationship with the renowned orchestra as a catalyst to demonstrate what opportunities 276 companies participated, 95 of which were new clients to the and assets exist for business growth and expansion in Pennsylvania. Since 2015, Team Pennsylvania trade program. This is the third BTW2PA event for which Team has built upon this relationship to further direct foreign investment initiatives on behalf of OIBD and PA has provided full funding and support. regional partners.

PLASTICS “Team Pennsylvania

Team Pennsylvania partnered with Pennsylvania’s Department of Community and Economic Development (DCED) to sponsor and organize Foundation actively a delegation to participate in the National Plastics Expo in Orlando Florida, May 7-11, 2018. Meetings with key business development identifies current economic prospects such as Shell, Braskem, Sekisui, Kennemetal, and Greiner were conducted during the event, which hosted over 65,000 professionals. trends and opportunities Through the meetings and networking events at the Expo, Team Pennsylvania worked to promote Pennsylvania as a strong place for the plastics industry to invest in and thrive. This work is a result of the implementation strategy from last year’s report on while developing an petrochemical opportunities in Pennsylvania. informed outlook for our

COLLISIONS AND TRANSITIONS state’s longterm business and technological plan. ENERGY How might CHANGING WEATHER Pennsylvania’s We have been gratified energy system Working alongside DCED and Shell Oil Company’s Global Energy evolve over the to work with business Scenarios Team, Team PA served as convener for the Pennsylvania next 25 years? and government sector Energy Horizons work to develop scenarios to inform PA’s energy strategy. UNIQUELY PA US & GLOBAL Prompted with the question, “How might Pennsylvania’s energy system 2040 FORCES leaders in advancing these evolve over the next 25 years, and what might it mean for Pennsylvanians?” TRANSITIONS PA ENERGY pursuits.” this project built two divergent pathways that the Commonwealth’s energy system might follow between now and 2040. This year-long collaborative And what might Joseph A. Fitzpatrick, Jr., initiative lays out the Rivers & Roots Scenarios. it mean for Shareholder & Founder of Pennsylvanians? Fitzpatrick Lentz & Bubba AGRICULTURE

By working together, Pennsylvania’s Department of Agriculture and Team Pennsylvania will advance Pennsylvania’s agriculture sector and grow the commonwealth’s presence in regional, national, and global marketplaces — ensuring this industry remains a vibrant part of our state for generations to come. AGRICULTURE ECONOMIC IMPACT AND TRENDS REPORT

PENNSYLVANIA AGRICULTURE’S In January 2018 at the 102nd Pennsylvania Farm ECONOMIC IMPACT Show in Harrisburg, Team Pennsylvania and the ECONOMIC IMPACT & TRENDS REPORT Pennsylvania Department of Agriculture (PDA) STRATEGIC unveiled “Pennsylvania Agriculture: A Look at the Economic Impact and Future Trends.” RECOMMENDATIONS The report, developed by Philadelphia-based $135.7 Econsult Solutions and Temple University’s Fox School of Business, provides – for the first time – a BILLION 1. Capitalize on branding detailed look at the direct and indirect impact of ANNUAL ECONOMIC IMPACT and marketing agriculture on Pennsylvania’s economy. About 18% of total opportunities; gross state product! The report also contains a set of six strategic 2. Expand on agricultural recommendations for policy and industry to $83.7 BILLION DIRECT infrastructure, such advance Pennsylvania agriculture. The report and $27.8 BILLION INDIRECT as processing and recommendations will continue to guide the work of $24.1 BILLION INDUCED the Agriculture Advisory Board in action oriented manufacturing capacity; sub-committees developed and led by champions of 3. Continue improving the industry. regulatory processes and the business climate;

4. Broaden workforce development and NEW MANAGER OF AGRICULTURE POLICY & PROGRAMS education opportunities;

5. Make additional Team Pennsylvania, Pennsylvania Department of Agriculture, and agriculture industry stakeholders recognized the investments in importance of ensuring longterm sustainability of the agriculture public-private partnership. Thus, Team PA and PDA infrastructure systems began the cooperative pursuit of hiring a devoted full-time staff person to manage the portfolio of strategic agriculture like transportation and initiatives. Working together, several private-sector investors pledged contributions in support of the position, demonstrating broadband; a commitment to and an investment in a prosperous future for the commonwealth’s agriculture industry.

Team PA officially welcomed a full-time Manager of Agriculture Policy & Programs in May 2018. The cornerstone of the 6. Diversify products to role is to facilitate new opportunities for economic growth that address needs of the industry through its integration into strengthen markets and PDA’s Executive Office and facilitation of the Agriculture Advisory Board. build resiliency. WORKFORCE DEVELOPMENT

Team Pennsylvania recognizes that a healthy economy depends on a healthy workforce. We listen to the needs of business and industry, and ground our work in aligning our education, workforce, and economic development systems. NEXT GENERATION INDUSTRY PARTNERSHIPS

To bring more resources to the commonwealth’s workforce development community, Team Pennsylvania continued With the transition to the Next to advance Next Generation Industry Partnerships in the commonwealth. Pennsylvania’s economic vitality depends on Gen Industry Partnership model creating an ecosystem where businesses have what they need to succeed while our workforce is prepared with in-demand in fiscal year 2017-2018, the skills. This requires an active, authentic, and engaged partnership from industry coupled with alignment commonwealth funded 15 Next across workforce and economic development efforts to ensure that we are collectively addressing the most critical Generation Industry Partnerships needs of our regional economies. Next Generation Industry Partnerships serve as a venue for businesses to tackle the through a competitive grant shared competitive needs of their sector—including, but not limited to, workforce issues, with support from public partners process. Additionally, five from workforce development, economic development, and education. unfunded partnerships have launched across the commonwealth. COMMUNITY PARTNERS PARTNERSHIPS HAVE LAUNCHED Community K-12 “A group of manufacturers Colleges IN THE FOLLOWING SECTORS: came together to figure out Advanced Manufacturing – 8 Universities how to promote manufacturing Agriculture & Food Processing – 1 Adult Basic in our region not just because it Education Business Services (IT) – 1 BUSINESS helps our business but because Energy – 1 Community-Based TABLE Organizations it helps the economic vitality of Healthcare – 5 Business Berks County.” Hospitality, Leisure & Economic Champions Entertainment – 1 Organizations Karen Norheim, Logistics & Transportation – 2 Executive Vice President Workforce Convener American Crane & Equipment Solutions Corporation COMMON THEMES: Providing career awareness Credit: Next Generation Sector Partnership Community of Practice activities and talent development (training, retention, career Starting in December 2017, a cross-agency state team met to develop proposed statewide and regional metrics for pathways, etc.) Next Generation Industry Partnerships. Over multiple meetings, the team developed a list of priority indicators of Business-to-business networking, success in three categories: workforce, economic, and partnership engagement. Team Pennsylvania serves on that regional marketing to business cross-agency state team and partners with national efforts to build capacity within the commonwealth. and workers, and joint advocacy efforts. 2017 - 2018 BOARD OF DIRECTORS

Pedro Anes Lisa Dell’Alba Honorable Patty Kim President, Inpact Learning, LLC President & CEO, Square One Markets, Inc. Representative, Pennsylvania House of Scranton, PA Bethlehem, PA Representatives Harrisburg, PA Anthony Bartolomeo 2 (Assumed co-chair position Vince Delie June 6, 2018) President & CEO, First National Bank Dave Kleppinger 3 President & CEO, Pennoni Associates, Inc. Corporation Chairman, McNees Wallace & Nurick LLC Philadelphia, PA Pittsburgh, PA Harrisburg, PA James Becker Wendie DiMatteo Holsinger 4 Jason Klipa President, PEDA CEO, A.S.K. Foods, Inc. Director of Public Affairs, Walmart Harrisburg, PA Palmyra, PA Hummelstown, PA David Black Joe Fitzpatrick Michael Kraft President & CEO, HBG Regional Chamber & Founding Member & Shareholder, Fitzpatrick Senior Vice President & General Manager, CREDC Lentz & Bubba Lycoming Engines Harrisburg, PA Center Valley, PA Williamsport, PA Honorable John Blake Honorable Matt Gabler Tom Lynch Senator, Pennsylvania State Senate Representative, Pennsylvania House of Chairman & CEO, TE Connectivity Scranton, PA Representatives Berwyn, PA DuBois, PA Heather Chandler H. Glenn “Bub” Manning President, Sealstrip Corporation Thomas B. Hagen 4 Principal, Quandel Construction Group, Inc. Gilbertsville, PA Chairman & Owner, Custom Group Industries Harrisburg, PA Erie, PA Honorable Dennis Davin Ken Mash Secretary, Dept. of Community & Economic Bruce Heugel President, APSCUF Development Senior Vice President, B. Braun Medical Inc. Harrisburg, PA Harrisburg, PA Bethlehem, PA Bobbi Kilmer President & CEO, C&T Enterprises Lewisburg, PA 2017 - 2018 BOARD OF DIRECTORS

Linda Moss Doug Rohrbaugh Michael Walton President of PA Operations, FirstEnergy Founder & Principal, Crabtree, Rohrbaugh & CEO, Jamestown Coating Technologies Reading, PA Associates Architects Jamestown, PA Mechanicsburg, PA Morgan O’Brien Brent A. Ward President & CEO, Peoples Natural Gas Honorable Mario Scavello President & Owner, Integrated Fabrication & Pittsburgh, PA Senator, Pennsylvania State Senate Machine, Inc. Tannersville, PA Greenville, PA Honorable Jerry Oleksiak Secretary, Dept. of Labor & Industry Scott Sechler Karen Winner Sed 4 Harrisburg, PA Chairman & President, Bell & Evans President & CEO, Winner International Fredricksburg, PA Sharon, PA Honorable Russell Redding Secretary, Dept. of Agriculture Melissa Shafer Honorable Tom Wolf 1 Harrisburg, PA Assistant Vice President of Government Governor, Commonwealth of Pennsylvania Relations & Community Affairs, Harrisburg, PA Jay Ridder St. Luke’s University Health Network Coordinating Partner, Ernst & Young Bethlehem, PA Susan Yee Philadelphia, PA CEO, Active Data, Inc. Don Siegel Bethlehem, PA Julian Ritchey International Vice President, IBEW 3rd District 1 2 3 Head of Vaccine Public Affairs & Advocacy, Coraopolis, PA Co-Chair; Vice Chair; Secretary; Sanofi Pasteur 4 Director Emeritus Swiftwater, PA Art Stephens Managing Director, Deloitte Honorable Pedro Rivera Harrisburg, PA Secretary, Dept. of Education TERMS ENDING IN FISCAL YEAR Harrisburg, PA Stephen S. Tang, Ph.D., MBA 1 2017-2018 President & CEO, University City Science John Robinson Center Katherine Bishop Vice President, Northern Region Air Products Philadelphia, PA Allentown, PA David Gruno Dionne Wallace Oakley “Chip” Loren D. Prescott Senior VP of Human Resources, Erie Insurance Erie, PA Roger Richards FINANCIALS

Available Funds 2016 - 2017 total 2017 - 2018 total* $10,439,345 $10,087,697

1,275,205 1,058,404

2,840,037 2,825,160

5,905,197 6,043,414

418,906 160,719

UNRESTRICTED PROGRAM-SPECIFIC ENDOWMENT OTHER INVESTMENTS

*based on unaudited financials INVESTORS

1st Summit Bank Ernst & Young, LLP PEDA

Air Products & Chemicals, Inc. First National Bank Pennoni Associates, Inc.

Alpha Precision Group FirstEnergy Corporation Quandel Constuction Group

APSCUF State Office Fitzpatrick Lentz & Bubba, P.C. Richards & Associates

B. Braun Medical Inc. Gannett Fleming Sanofi Pasteur

“The success of Pennsylvania depends heavily on collaboration between business, political, and civic leadership, which is another key reason FNB supports Team Pennsylvania.”

Vincent J. Delie, Jr., CEO & President of First National Bank

Claverack Rural Electric Cooperative Glatfelter Insurance Group Sealstrip Corporation

Community Commonsense Education Fund IBEW Third District Office Shipley Energy Group

Crabtree Rohrbaugh & Associates Architects Insight Partners University City Science Center

David E. Black Integrated Fabrication & Machine, Inc. Wilkes University

Erie Insurance Company McNees Wallace & Nurick LLC Winner International, Inc. WORKING. TOGETHER.

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