A Competitive Realities Report & Target Industry Strategy for Erie
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A Competitive Realities Report & Target Industry Strategy for Erie County, Pennsylvania April 15, 2019 Prepared for the: Target Industry Strategy715 Birkdalefor Erie County, Drive Pennsylvania | Atlanta, GA 30215 | p 770.716.9544 | f 770.719.8911 | www.garnereconomics.com | Page 1 Table of Contents Chapter 1: What Stakeholders Think .......................................................... 6 Chapter 6: Retail Analysis ......................................................................... 51 Chapter 2: Assets & Challenges Assessment .............................................. 8 Chapter 7: Local Specialization, Competitiveness & Growth ................... 54 Chapter 3: Dashboard Indicators Summary ............................................. 13 Major Industry Sector Change ....................................................................... 54 Chapter 4: Demographic & Community Trends ....................................... 23 Industry Earnings ........................................................................................... 56 Major Occupational Change .......................................................................... 58 Population Trends .......................................................................................... 23 Occupational Earnings ................................................................................... 60 Age.................................................................................................................. 25 Major Industry Sector Specialization & Growth ............................................ 63 Diversity .......................................................................................................... 27 Industry Competitiveness .............................................................................. 65 New Residents ................................................................................................ 28 Chapter 8: Optimal Business Targets for Erie County .............................. 69 Educational Attainment ................................................................................. 29 Secondary School Performance ..................................................................... 30 Life Sciences ................................................................................................... 71 Household Income ......................................................................................... 31 High Value-Added Manufacturing ................................................................. 75 Personal Income ............................................................................................. 32 Food & Beverage Processing/Agriculture & Aquaculture .............................. 80 Per Capita Income .......................................................................................... 33 High-Value Business Services ......................................................................... 85 Poverty ........................................................................................................... 33 Tech/Gaming/Digital ...................................................................................... 90 Crime .............................................................................................................. 34 Year-Round Experiential Recreation .............................................................. 95 Cost of Living .................................................................................................. 35 Chapter 9: Recommendations to Achieve Success .................................. 99 Chapter 5: Economic Dynamics & Employment Trends ........................... 36 Chapter 10: Call to Action ...................................................................... 103 Labor Force Participation ............................................................................... 36 Labor Force Participation—Families............................................................... 37 Labor Force ..................................................................................................... 38 Appendices Labor Force Draw ........................................................................................... 39 A: Focus Group Participants .............................................................. 104 College Enrollment & Degrees Granted ......................................................... 40 Commuting Patterns ...................................................................................... 41 B: Focus Group Summary .................................................................. 105 Estimated Annual Wages................................................................................ 43 C: Assets & Challenges Endnotes ...................................................... 111 Major Industry Sector Composition ............................................................... 44 D: Industry Details ............................................................................. 115 New Firm Startups .......................................................................................... 45 Self-Employment ............................................................................................ 46 E: Occupational Details ...................................................................... 119 Broadband Availability ................................................................................... 47 Airport Service ................................................................................................ 49 Unionization ................................................................................................... 50 Target Industry Strategy for Erie, Pennsylvania | Page 2 EXECUTIVE SUMMARY In January 2019, the Erie Regional Target Industry Strategy is to help Erie attract and retain businesses that Chamber and Growth Partnership will create jobs by focusing efforts that leverage the community’s assets (Partnership or ERCGP) retained Garner and strengths. Economics, LLC to help craft a Specifically, the scope of services for the overall project included: Competitive Realities Report and Target Industry Strategy to focus its economic • A comprehensive and holistic assessment of key forces driving development efforts. Erie’s economy; This engagement compiled data, • An Assets & Challenges Assessment (A&C) of Erie and Erie County analyzed qualitative and quantitative from the perspective of a site-location consultant that facilitates factors that impact the area’s investment decisions; competitiveness as a business location, • Recommendations for business targets suitable for Erie to pursue, and offers observations for the Partnership to understand the optimal based on our research and analysis; and finally, targets that exist for the area and the value the region offers to those targets. • A set of implementable recommendations that the Partnership and other organizations may use to enhance the economic vitality The resulting Target Industry Strategy details the product improvement, of the Erie region. organizational changes and marketing to the targeted industries needed to ensure that the region strengthens its competitive position. The goal of the FIGURE 1: PROJECT PROCESS PHASE 1 PHASE 2 PHASE 3 Discovery Analysis Strategy & Recommendations • Reviewed past studies • Business retention and growth Implementation plan with actionable items • Conducted site visits and focus groups • Product improvement (asset • Marketing • Evaluated demographic and existing development) for the area • Organizational cluster status/conditions • Entrepreneurship • Asset development • Undertook an Assets & Challenges • Business recruitment and marketing Assessment • Workforce needs Target Industry Strategy for Erie, Pennsylvania | Page 3 Assets & Challenges Assessment Target Industries Strategy (TIS) Garner Economics conducted an Assets & Challenges Assessment The analysis in the above-mentioned workstreams revealed that the (sometimes referred to as a SWOT analysis) of Erie County. This was done County has many assets upon which to build. The TIS identifies and through a comprehensive tour of the area that assessed the County against provides the rationale for the target sectors that will both diversify the a pre-determined list of investment factors. The evaluation was taken from industry mix in the area as well as build on current areas of strengths. These a site-selection perspective. Garner Economics assessed the area based on targets are “best fits” for the area and are recommended, given the the qualities, elements, and infrastructure that a business will examine attributes and assets of Erie County as a whole. when evaluating a location as a place for its operations or as an investment. The description of and rationale for the targets detailed in Chapter 3 will The Assets & Challenges Assessment is both an objective and subjective help the Partnership prioritize marketing resources and will identify areas evaluation of the area. The assessment allows us to document challenges where policymakers can act to increase the area’s competitive position in that exist in the community that constitute potential barriers for successful attracting and retaining these business sectors. targeted business recruitment to occur. By knowing what challenges or gaps exist, the region can take the steps necessary to mitigate the The identified target business sectors are: situation, strengthen its overall “product,” and be a more attractive Life Sciences