River Revenue an Economy Built on the Banks of the Susquehanna

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Central Penn Business Journal’s Dauphin/ Cumberland Business Report 2014 River Revenue An economy built on the banks of the Susquehanna

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2 Dauphin/Cumberland Business Report 2014 FROM OUR SPONSOR 4 Dear Readers: MARKET FACTS The facts and numbers behind Dauphin and Cumberland Area Economic Development Cumberland counties Corp. (CAEDC) and Cumberland Valley Visitors Bureau (CVVB) are proud to serve the Cumberland Valley community, which includes Cumberland County and the surrounding area, through the attraction of new 7 business, the growth and retention of existing BUSINESSES THAT LISTEN business, and the promotion of our tourism and natural assets. We A focus on customer needs spurs business growth work each day to create jobs, generate investment and maintain a in the region high quality of life for our community. Our success is contingent upon the strength of our partnerships with businesses, nonprofits, local municipalities and residents. As the county’s designated economic development agency, CAEDC has access to a variety of investment strategies to help 14 new and existing businesses bridge the financing gap between A DIFFERENT KIND OF private investment and total project cost. We offer development RIVER ECONOMY services ranging from site selection, capital access, permit naviga- The Susquehanna’s scenic backdrop propels local business tion, community planning and more. The CVVB, CAEDC’s tourism arm, is the designated destination marketing organization for the county. We assist organiza- tions through tourism grant programs; the Tourism Infrastructure Loan Fund; increasing visitation through leisure, group and 18 business travel; and by providing public relations support. Q&A WITH SCOTT KARNS In 2013, CAEDC experienced its best year since its incep- Karns Quality Foods president and CEO discusses tion in 2005. We financed or funded seven projects with a total investment of $24 million, which leveraged another $46 million company history and future in private investment or matching funds. Site selection was also strong, with three development projects with a total investment of $207 million and 2,287 jobs created and/or retained. When we talk to businesses about why they moved to Cum- 21 berland Valley, or continue to stay in the area, their response PROTECTING LIQUID ASSETS always includes the combination of a highly skilled, trained and Keystone Clearwater Solutions provides secure water educated workforce alongside our strategic location and high supplies for the shale industry quality of life. We look forward to continuing that momentum through advancing and promoting economic growth in Cumber- land Valley and fostering strategic partnerships. Thank you to our partners, because together we make Cumberland Valley the best place to live, work and play. 1500 Paxton St., Harrisburg, PA 17104 | 717-236-4300 | Fax 717-236-6803 www.CPBJ.com Sincerely, CEO/Publisher Project Editor Contributing Designer David A. Schankweiler Erica Streisfeld Ann Marie Reynolds President Editorial Coordinator Sales Manager Jonathan Bowser, CEO Larry Kluger Barbara Phillips Long ShaunJude McCoach Cumberland Area Economic Development Corp. Business Manager Operations Director Account Executive Donna Schankweiler Chad Pickard Sarah Plesic Associate Publisher Graphic Designer VP, Audience Development Douglas D. Cooper Mark Lockley Zander Gambill

BRIDGING THE FINANCING GAP with private investment for real estate acquisition and construction, working capital and equipment purchases. CumberlandBusiness.com (717) 240--7180

Dauphin/Cumberland Business Report 2014 3 Dauphin/Cumberland MARKET FACTS EMPLOYMENT BY INDUSTRY

Getting to know Agriculture, Forestry, Fishing & Hunting 635 Mining 163 Utilities 858 Dauphin and Construction 5,129 Dauphin Manufacturing 11,579 Wholesale Trade 6,944 Cumberland Retail Trade 14,791 Transportation & Warehousing 5,855 Information 2,330 Finance & Insurance 10,057 counties Real Estate & Rental/Leasing 1,345 Professional & Technical Services 6,902 Management of Companies & Enterprises 3,552 TOP EMPLOYERS Admin/Support & Waste Management/Remediation Services 9,085 10 Educational Services 3,027 Health Care & Social Assistance 26,463 Dauphin County Arts, Entertainment & Recreation 6,597 Accommodation & Food Services 1. State government 13,560 Other Services, except Public Administration 2. Milton S. Hershey Medical Center 6,031 Federal Government 2,626 3. Hershey Entertainment & Resorts Co. State Government 26,153 4. The Hershey Co. Local Government 10,963 5. PinnacleHealth Hospitals

6. PHEAA Agriculture, Forestry, Fishing & Hunting 235 7. Federal government Mining 76 8. Tyco Electronics Corp. Utilities 75 9. Pennsylvania State University Cumberland Construction 4,127 10. Harrisburg Area Community College Manufacturing 8,222 Wholesale Trade 3,854 Cumberland County Retail Trade 15,475 Transportation & Warehousing 1. Federal government 12,231 Information 2. Highmark Health Services 2,336 Finance & Insurance 8,218 3. Holy Spirit Hospital Real Estate & Rental/Leasing 1,382 4. State government Professional & Technical Services 7,168 5. Giant Food Stores LLC Management of Companies & Enterprises 4,311 6. Cumberland County Admin/Support & Waste Management/Remediation Services 8,066 7. Cumberland Valley School District Educational Services 3,125 8. Ahold Financial Services LLC Health Care & Social Assistance 14,293 9. Fry Communications Inc. Arts, Entertainment & Recreation 1,079 10. Dickinson College Accommodation & Food Services 9,357 Other Services, except Public Administration 4,636 Source: Center for Workforce Information & Federal Government 4,892 Analysis, Pennsylvania Department of Labor State Government 3,318 & Industry, third quarter 2013 Local Government 7,594 Source: Pennsylvania Department of Labor & Industry, 2012 annual average

LABOR FORCE Dauphin Cumberland Pennsylvania Civilian labor force 140,200 125,800 6,430,000 Dauphin/Cumberland unemployment rates Unemployment rate 5.5% 4.8% 6.2% are lower than the Source: Center for Workforce Information & Analysis, Pennsylvania Department of statewide rate. Labor and Industry, 2014; preliminary February 2014 figures, seasonally adjusted

4 Dauphin/Cumberland Business Report 2014 POPULATION GROWTH

Cumberland has been Pennsylvania’s fastest-growing county since 2010. Growth* POPULATION Dauphin County 270,937 Cumberland County 241,212 Pennsylvania 12,773,801

*Population growth from April 1, 2010 to July 1, 2013 Source: Pennsylvania State Data Center, 2013 estimates 1.1% Dauphin County 2.5% Cumberland County

POPULATION DENSITY The Harrisburg-Carlisle MSA has the lowest population density in Central Pennsylvania. Population

METRO AREA DENSITY Lancaster 528.00/square mile 519,445 434,972 Lancaster York-Hanover York-Hanover 477.61/square mile Lebanon 368.47/square mile Harrisburg-Carlisle* 330.21/square mile 133,568 549,475 Harrisburg- *Harrisburg-Carlisle MSA includes Perry County Lebanon Source: USA.com; based on 2010 data Carlisle

MEDIAN HOUSEHOLD INCOME* *For Harrisburg-Carlisle MSA; includes Perry County $57,368 Source: USA.com; based on 2008-2012 data

MEDIAN HOUSE PRICE* *For Harrisburg-Carlisle MSA; includes Perry County $169,000 Source: USA.com; based on 2008-2012 data

COLLEGE GRADUATES GDP*

31k

30k 28.7% of residents had college degrees in 2010 29k 28k 27k of residents had college degrees in 1970 26k 9.4% 25k 24k

23k That represents 19.3% growth 22k 21k Millions of current dollars 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Cities with the Most College-Educated Residents, The New York Times, May 30, 2012; based on data from the Brookings Metropolitan *For Harrisburg-Carlisle MSA; includes Perry County Policy Program for the Harrisburg-Carlisle metro area Source: U.S. Department of Commerce, Bureau of Economic Analysis

Dauphin/Cumberland Business Report 2014 5 PinnacleHealth is a great partner in making our Wellness Initiative a success. - Susan Stough, Benefits Administration Manager, Hershey Entertainment & Resorts

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6 Dauphin/Cumberland Business Report 2014 Dauphin/Cumberland

As a multi-location John Deere equipment dealer, Valley Ag & Turf rents, services and provides parts for agricultural equipment, commercial work products and lawn and garden equipment. PHOTO/SUBMITTED Businesses that Listen Local business growth stems from meeting customer needs By Barbara Phillips Long

When you look at some of the fast- “A lot of it is taking a lesson learned to be at “the intersection between busi- est-growing companies in Dauphin and from mom and pop stores,” said Matt ness goals and customer results.” Cumberland counties, it is quickly ap- Hummel, president of Red Privet in down- Most of Red Privet’s clientele is drawn parent that they are also sharply focused town Harrisburg. “People value someone from the insurance, health care and on customer needs. Th ey start by off ering who listens.” fi nancial sectors, with goals being to a quality product and then acquire the support the clients’ business processes, skilled workforce needed for success. keep customers satisfi ed and increase Choosing the right employees is import- Red Privet business. For example, Hummel cited ant and training and integrating them into Red Privet is a Amazon Prime as a product that has the business’s culture is important, but business-to-business increased returns for a company while satisfying customers is even more import- fi rm specializing in user creating a group of customers who are ant. It’s a back-to-basics approach about experience research and fans of the service. knowing the customer, in contrast to the service design. It’s the Red Privet starts by interviewing big-box stores that have lowered prices kind of work that owner the client’s customers to discover what through effi ciencies. Hummel Matt Hummel considers will make customers satisfi ed with their Continued on page 8 Dauphin/Cumberland Business Report 2014 7 Dauphin/Cumberland BUSINESSES THAT LISTEN

experience. The company then does But it’s the qualitative and quantitative primary research and observes customers research the firm does that sets it apart navigating through a website, mobile site from the competition. “We don’t design or using a social media project, and then on instinct ... we go out and test it,” Hum- it designs a prototype and tests it. mel said. “We’re very rigorous and evi- Red Privet isn’t a retail operation, but dence-based,” Hummel said, noting that it still has back-office needs. “We’re really his company does not favor a particular a consultancy as much as anything. Our platform or method. “We’re technology fixed costs are relatively small … we are agnostic.” mostly about our thinking power,” Hum- That means its designers look for the mel said. most effective technology and then design Nevertheless, the company has found in order to produce a satisfactory custom- that it needs people to manage its office er experience. Sometimes the product is a operations. In addition, having project blend of online and offline services. managers on staff to make sure products Hummel once watched a woman are delivered on schedule has turned out using a software product, and at the end, to be essential. when asked, she said “The software’s fine, The firm began with an office in- Har but I’m just too stupid to use it.” risburg, which is located above the train Having customers use software that station. There are also some employees in makes them feel inadequate is not effec- Pittsburgh and an office in the Philadel- tive design, and design is not just about phia area in Chester County within walk- appearance. The design has to be seam- ing distance of the Paoli train station. less and functional. “(Our) designs have Red Privet has a high percentage to look good, but they also have to work of repeat business, although it also is Red Privet’s focus on helping businesses improve their well and anticipate what the customers expanding strategically into new markets, customers’ user experience results in efficiency gains will do next,” Hummel said. “It’s about and many repeat customers have multiple and cost reductions. PHOTO/SUBMITTED being useful now.” services redesigned by the Red Privet staff.

8 Dauphin/Cumberland Business Report 2014 The repeat customers are also a source of referrals, bringing in new customers. Valley Ag & Turf LLC “We are in the people business first,” said George S. “Tige” Kot- kiewicz, vice president and general manager of Kotkiewicz Valley Ag & Turf LLC in Halifax. “It is a ‘now society,’ period.” Since 1996, this John Deere dealer has grown from one location to five, and it has also added behind-the-scenes business doing setup and service for John Deere products that sold through about a dozen big-box stores in the region, such as Lowe’s and Home Depot. While business peaks in the spring and fall, Kotkiewicz said Valley Ag has been able to level out some demand by adding “a very strong Valley Ag & Turf has John Deere dealerships in Halifax, Watsontown, Centre Hall, Reedsville and Harrisburg. winter service program.” A fleet of service PHOTO/SUBMITTED trucks and a deep inventory of parts allow commercial landscapers, light industry, erations, and the new features may move for service in a homeowner’s driveway, at small agricultural operations and large into commercial landscaping equipment a big-box store or at a business location agricultural businesses. Innovation from next. Tractors, sprayers and harvesters or farm. John Deere is coming at the high end of offer auto tracking and auto steering using In addition to the residential market, the product lines, mostly in equipment GPS and ground-based data, wireless data the business sells John Deere products to designed to serve large agricultural op- transfer, remote monitoring of equip- Continued on page 11

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MILESTONES: An anniversary celebration

Inside this issue C E N T R A L P E N N B U S I N E S S J O U R N A L’ S FINANCIAL www.CPBJ.com EXE oF ThEC YeaRUTIVE 2014 PRESENTED BY: Submit nominations at www.CPBJ January 3, 2014 • Vol. 30 • No. 1 • $2 .com/events. DEADlINE: JAN. 27

- www.CPBJ.com February 28, 2014 • Vol. 30 • No. 10 • $2 Inside LEBANON AND YORK COUNTIES ties have been sold to private compa nies that medical officials say canReg run ION in buying the facility, despite a county them more smoothly and efficiently. subsidy totaling more than $20 million Inside “I would say in almost every case, — Elite Coach has Firms eager toCedar buyHaven Nursing nursing Home, the line homes, despite deficits since 2003 just to keep it open. , page 5 Motoring along of private companies ready to buy the - NURSING BY MICHAEL SADOWSKI .com Lebanon County is facing a decision please see had a pretty smooth ride. Page 3 michaels@cpbj facility goes out the door. - other Pennsylvania counties have tack — Boutique Representatives of six private health led, as county-run nursing home facili Midstate music care companies have met formally with conference and showcase connects While Lebanon County com- the commissioners to express interest mIDSTATE industry and grows Harrisburg’s live missioners delve through information Page 3 Rental plans — Apartment complex music brand. to help decide whether they should sell of “unusual size” coming to Inside Business Harrisburg. Page 3 REGION Home matters — Lancaster County CORPORATE MEETINGS plumbing firm’s growth strategy AND COMPANY OUTINGS targets female homeowners. ST Page 3 o A five-year analysis of theC k REPo Space potential CPBJ RT — HIAPilot tests hostingshortage hasbiggest public companies FANTASy SToCk PoRTFolIo events for outreach, notlong-range finances. implications In the spirit of experimentation and a little fun, staff reporters Jason Scott and Michael Sadowski have Page 3 in Central Pennsylvania created a fantasy fund of seven local stocks from the Business Journal’s June public companies list. Call 717-236-4300 today for print BY JOHN HILTON We “bought” 1,000 shares of each at the closing bell on the first day of trading last month. Jason .com FLIGHT CHANGESjohnh@cpbj By JasoN picked three of the nonfinancial companies, Mike chose three banks, and we randomly selected a Inside Business scoTT aNd MichaEl sadowsKi seventh stock to round out our portfolio. AgRIB usINess IN During 2014, we will track our fantasy investments and report our returns or losses as we Ce NTRALWhile PA. the pilot shortage hasn’[email protected] yet and [email protected] update information on all of the public companies from the list. We might even add to the “CPBJ been felt at Lancaster Airport,While David stock chasing is often an inexact Performance Fund” portfolio based on a desire to expand this project to include other public compa-

Catering to the group — Area Eberly knows it will eventuallyscience, havewe tried an to boil it down as exactly as it nies with ties to Central Pennsylvania. restaurant owners see a growing impact locally. Investment returns also could help spur that along. could be. - demand for corporate eventsPage and 15 Lancaster officials are trying to get Our initial investment in these stocks “cost” $229,980. That number does not include any broker fees. and digital subscriptions to the private social functions. We tracked the stock price movement of the out in front of the issue with program Check back for an update in our Jan. 31 edition. From there, we will report back at the end of each ming aimed at area22 youth. biggest Every publicly so traded companies based quarter this calendar year. Updates will occur at the end of March, June, September and December. often, the airport directorin the midstate,and his staff according to Business Journal will visit a local schoolrecords, or host to a determine public how those stocks have Jason’sJason’s selections selections session in which aviationperformed is the for topic. their investors. RITE AID CoRP. “We really tried to broaden it out $6.03 per share at $6,030 initial invest- The stock prices are from the closing bell close on Dec. 2 and make it something that high ment on 1,000 shares, school students on could the really last traded look at day of the third quarter from minus broker fees ARmSTRoNG WoRlD and get excited 2008about to a potential 2013. That career excludes East Pennsboro INDUSTRIES INC. $53.05 per share $53,050 investment Central Penn Business Journal. in aviation,” EberlyTownship-based said. “We’ve been Rite Aid Corp., where we THE HERSHEy Co. Behind the list — In this week’s sort of taking ourlooked show at on the the company’s road.” second quarter. $96.49 per share $96,490 investment Q&A, meet Dennis Grumbine, CEO of Growing on them Recent data from the Frederick, - — Central Pa. There is no specific reasoning for using the Mike’sMichael’s selections selections Lebanon Valley Expo Center and the farmers slow to embrace social Md.-based Aircraft Owners and Pi third quarter other than it was the last avail SUSqUEHANNA BANCSHARES INC. Lebanon County tourism promotion media. Page 13 4 $12.35 per share Page 19 PHOTO/AMY SPANGLER lots Association has renewed concerns, page - $12,350 investment agency. ableplease quarter see FLIGHT filed and publicly accessible. After mETRo BANCoRP INC. $21.37 per share $21,370 investment page 22; Golf Planning time — Agribusiness we compiled the statistics, some companies CoDoRUS VAllEy BANCoRP INC. The lists — Caterers, $19.95 per share programs pump up dairy farm admitted they do better in the third quarter $19,950 investment courses, page 23; Hotel-based page 24; Meeting finances.Page 13 RandomRando selectionM selection meeting facilities, than they do in other quarters. page 25. Flight instructor Barbara George and student pilot Chris Hoffman prepare for takeoff at the Carlisle Airport. George owns THE y facilities, The list oRk WATER Co. Cumberland Valley Aviation, a business based at the Cumberland County airport in South Middleton —Township. Heavy equipment dealers please see $20.74 per share $20,740 investment directory, page 21. report, page 6 ONLINE - —Jason Scott and Michael Sadowski THIS WEEK goes with it. You have to break it.” The company was founded as Cas - REGION “The existing customer base still sTAT e THIS WEE key Printing in 1986 before rebrand sees us as a printingk company. oNlINE The new Print evolves – butThe two remains are one and the same core today. Missservice last month’s Franklin in digitaling about marketing two years ago to reflect the - clients don’t know the background and Abruzzo lays out experience, background to be DEP’s leader The High Center and the BY JASON SCOTT However, that herd of companies is County Growth Report? Read it change in ownership and a shift to Business Journal have teamed .com see us as a communications company,” 6 jasons@cpbj slowly being culled through acquisi online. Visit www. digitalSecretary and marketing also services. addressesPRINT, page E. Christopher up for the High Center Family said Tony Rife, president and majority please see learned as a member of the “regulated tions. And rebranding efforts in favor of CPBJ.com climate-change comments Abruzzo, as secre “We’ve shifted (at DEP) the para Business Forum, a two-part owner of York-based Caskey Group - community” — a term he used to refer - - names that include “communications” and click tary of the Pennsyl - digm a little bit to make sure we are event focused on family-owned Traditional commercial printers LLC. “I do think there is a stigma that - ence his time as a supervisor in Derry and “group” have replaced “offset” and “Special By BRENT BURKEy vania Department examining not only the intended con and small businesses. For are dead — at least in name. Market Editions” in Township — is that the unintended - “printing” in many company names. [email protected] of Environmental sequences but also the unintended tickets and more information ing service and logistics providers are the top LIFTING THEIR consequences of policy and regulation about the March 20 event, visit Protection. consequences. And if we do that well, alive and well — even growing. menu bar. The state Senate lastSTANDARDS month con that environmental regulators put in www.CPBJ.com/events. - One of the things then we really do create a win-win,” INDEX firmed Gov. Tom Corbett’sSchindler choice, goes place typically are what cause industry FEATURES 21 Abruzzo said he has he said...... for environmental Abruzzo to struggle. Business Record 15 ...... gold in new facility please see ABruzzo, page Inside Business 19 4 ...... Lists & Leads 20 Page 3 ...... FEATURES Newsmakers 30 INDEX ...... Awards ...... Ag Off The Clock 21 20 RIC uLTuRAL ...... Business Record ...... On The Move 10 22 CONveRsATION ...... Inside Business ...... Opinion 11 13 In this week’s Q&A, ...... Lists & Leads The Whiteboard ...... 17 meet Jim sharp, Newsmakers ...... 18 Pennsylvania Farm show Off The Clock ...... 26 manager for competitive On The Move ...... 19 agricultural events Opinion ...... 10 Page 17 www.CPBJ.com

10 Dauphin/Cumberland Business Report 2014 Dauphin/Cumberland BUSINESSES THAT LISTEN ment (hydraulic fluid levels, engine fluid temperatures and more) and remote monitoring of performance so that farm fleet managers can compare how different operators are using the machinery. Naturally, there are also tradeoffs in serving the different markets. Large equipment may come with a higher commission, but fewer units are sold and the dealer is required to carry a deep inventory of parts, which ties up capital. With residential products, the per-item commission is smaller but the return comes from volume sales and the subcontracting that Valley Ag does with big-box stores. In essence, the business benefits from the sales force at the big-box stores, even though it doesn’t directly employ them, Kotkiewicz said. In order to support the sales and By closing its Maryland and Virginia locations, West Shore Window & Door has been able to double the revenue at service force, Valley Ag relies on in-house its Mechanicsburg location. PHOTO/SUBMITTED financial management and HR staff ning of 2013, West Shore Window members. And while the back-end staff & Door had an office in Maryland members are not visible in showrooms, and another in Virginia, in addition they are essential to keeping the business to its current one. Things were go- running smoothly. ing well, Werzyn said, but 80 percent of the profit was coming from West Shore the Central Pennsylvania location Window & while it was taking 80 percent of his effort to run the other two offices. It Door simply didn’t make sense. Lower Allen Town- At the same time, Werzyn was ship-based West Shore becoming increasingly aware of Window & Door installs statistics about the danger of slip- Werzyn replacement windows, and-fall accidents in bathrooms. doors and garage doors, and it recently His new goal was to offer a prod- expanded to add bath and shower units. uct that would serve people who While most replacement-window busi- wanted to stay in their homes even nesses use subcontractors, West Shore though their mobility was declin- Window owner B.J. Werzyn took a differ- ing, and he thought that would be ent route. an expanding market. It worked “We don’t use any subcontractors, and — the business was grossing $1 that’s very unique in our industry ... we million a month with the three can control the quality of the installation,” offices, and after closing the two Werzyn said. “You lose that when you out-of-state offices and adding the West Shore Window & Door recently opened a West Shore subcontract.” West Shore Shower & Bath divi- Shower & Bath division adjacent to its current Lower Allen While much of his business involves sion, West Shore Window & Door Township location. PHOTO/SUBMITTED replacing windows in homes built in the is now grossing $2 million a month 1950s, ‘60s and ‘70s, the company also and has about 100 employees. where the construction trash is housed. replaces windows in homes that were built “I am here every day anyway. I can Werzyn has also had to beef up his staff in 2004-2006, mainly because the build- oversee everything,” Werzyn said. “It’s in order to support this growth. There’s ers used inexpensive materials. Werzyn probably the best move I’ve ever made.” now a graphic designer, an HR manager estimates that inexpensive replacement In early 2013, West Shore Window and a full-time in-house recruiter, among windows have a life cycle of five to seven & Door moved into a new building on others. In order to ensure that these new years, but he no longer uses windows that Simpson Ferry Road. And, more recently, employees have the skills needed for their won’t last. “Now we get repeat customers Werzyn purchased half of the vacant lot jobs, he uses screening procedures. Hiring and referrals,” Werzyn said. between his site and the auto supply store is not only a matter of getting “all the right Refocusing the business also made a further down the street in order to expand people on the bus” but also “making sure big difference in growth. By the begin- his parking lot and redo the dumpster area they’re in the right seat,” he said.

Dauphin/Cumberland Business Report 2014 11 PAID ADVERTISEMENT AGRICULTURE The community and the Cumberland Area Economic Development Corporation (CAEDC) recognize the importance of agriculture to our local economy. The expansion at Earth Spring Farm is a great example of this investment in local farms and ag-related businesses. CAEDC assisted with ﬁ nancing for Earth Spring Farm’s new 42-acre agricultural site located in Monroe Township. Due to signiﬁ cant increases in production and customer base, the company decided to expand its operation and create additional jobs. AllBetterCare, South Middleton Township TOURISM DEVELOPMENT CAEDC invests in tourism-related attractions and projects, viewing this type of economic development vital to our area’s success. For example, CAEDC reached out to community leaders in Newville to begin discussions for the town to develop into a Trail Town as the Cumberland Valley Rail Trail plans to expand to Carlisle, placing Newville in the center.

CAEDC also uses in-house programs like the Tourism Infrastructure Loan Fund for projects, most recently to assist with the acquisition and renovation costs for Comfort Suites Carlisle.

Lodging growth develops in tandem with increased visitation and business expansion in the area. Since 2005, the county STRATEGIC has gained 731 rooms from 14 new properties, for a total of 4,191 rooms. Three new hotels are currently underway for an estimated total of 310 additional rooms.

REDEVELOPMENT LOCATION A project that will spark both economic development and tourism growth will be the Carlisle Urban Redevelopment Plan. The three vacant manufacturing properties includes Volvo Construction Equipment, Shippensburg plans for residential, commercial-mixed use and light = Earth Spring Farm, Monroe Township industrial development. CAEDC will continue to support this THRIVING ECONOMY Photo by Amy Spangler project through ﬁ nancing options and incentives.

WHAT’S THE IMPACT? The county’s approximately 6,000 businesses employ around Finding the balance is key 116,000 and, according to the PA Center for Workforce umberland Valley, encompassing Cumberland County HEALTHCARE Information and Analysis March 2014 report, the county’s and the surrounding area, offers a close proximity Highlights of Cumberland Valley’s healthcare industry include unemployment rate is one of the lowest in the state – 4.9%. Cto major east coast markets and regional seaports, the new PinnacleHealth West Shore Hospital in Hampden Growth in the industries listed above allows for the continued along with viable connections via Interstate 81, I-83, I-76 Township, Holy Spirit’s expansion in East Pennsboro Township success and demand for a skilled workforce in Cumberland and US 11/15. These unique geographic assets set the stage and Highmark’s continued presence as the number one private Valley and a high quality of life. for a vast selection of industries that thrive, expand and are employer. Smaller medical practices have also expanded, Cumberland Valley Rail Trail, Newville to Shippensburg headquartered here in the Valley. including the opening of the second location for AllBetterCare Tourism in Cumberland Valley generated an estimated 1.4 Urgent Care Center in South Middleton Township. million in overnight leisure and business travelers in 2013 and RETAIL $749.8 million in visitor spending, $35.5 million in federal Retail trade is the top industry in the Valley and shows DISTRIBUTION & MANUFACTURING taxes and $41.4 million in state & local taxes. Tourism also signifi cant growth in areas like the Carlisle Pike in Hampden Cumberland Valley continues to be an attractive location for employs 6,068 people and adds $153.5 million in wages. and Silver Spring Townships with announcements of retailers, the logistics, distribution and manufacturing industries due to Each household would pay $442 more in taxes without the automotive dealers, and restaurants to occupy space along accessible transportation systems and an available, skilled tax revenue generated by the tourism industry in the county. the pike. Strong national retailers such as New England and educated workforce. These unique qualities meet the Retailers Properties have also continued to show interest demands of international and national developers such as; CAEDC is invested in this region to support local business in the Valley, as they see demand is starting to increase Goodman Birtcher, Panattoni Development, and Hillwood. It’s and a thriving economy. As the county’s designated economic as population grows at a fast pace. According to the U.S. also why companies like Carlisle Construction Materials and development agency and destination marketing organization, Census Bureau, the county is the fastest growing county in Volvo Construction Equipment continue to expand and invest CAEDC values the diversity of assets we have here in the cumberlandbusiness.com Pennsylvania since 2010 with 2.5% growth. The population in this community. region and looks forward to future responsible growth and visitcumberlandvalley.com projection for 2020, according to the Penn State Data Center, maintaining the balance that makes Cumberland Valley is 258,880. special to those who choose to live, work and visit here. (717) 240-7180 12 Dauphin/Cumberland Business Report 2014 PAID ADVERTISEMENT AGRICULTURE The community and the Cumberland Area Economic Development Corporation (CAEDC) recognize the importance of agriculture to our local economy. The expansion at Earth Spring Farm is a great example of this investment in local farms and ag-related businesses. CAEDC assisted with fi nancing for Earth Spring Farm’s new 42-acre agricultural site located in Monroe Township. Due to signifi cant increases in production and customer base, the company decided to expand its operation and create additional jobs. AllBetterCare, South Middleton Township TOURISM DEVELOPMENT CAEDC invests in tourism-related attractions and projects, viewing this type of economic development vital to our area’s success. For example, CAEDC reached out to community leaders in Newville to begin discussions for the town to develop into a Trail Town as the Cumberland Valley Rail Trail plans to expand to Carlisle, placing Newville in the center.

CAEDC also uses in-house programs like the Tourism Infrastructure Loan Fund for projects, most recently to assist with the acquisition and renovation costs for Comfort Suites Carlisle.

WHAT’S THE IMPACT? The county’s approximately 6,000 businesses employ around Finding the balance is key 116,000 and, according to the PA Center for Workforce umberland Valley, encompassing Cumberland County HEALTHCARE Information and Analysis March 2014 report, the county’s and the surrounding area, offers a close proximity Highlights of Cumberland Valley’s healthcare industry include unemployment rate is one of the lowest in the state – 4.9%. Cto major east coast markets and regional seaports, the new PinnacleHealth West Shore Hospital in Hampden Growth in the industries listed above allows for the continued along with viable connections via Interstate 81, I-83, I-76 Township, Holy Spirit’s expansion in East Pennsboro Township success and demand for a skilled workforce in Cumberland and US 11/15. These unique geographic assets set the stage and Highmark’s continued presence as the number one private Valley and a high quality of life. for a vast selection of industries that thrive, expand and are employer. Smaller medical practices have also expanded, Cumberland Valley Rail Trail, Newville to Shippensburg headquartered here in the Valley. including the opening of the second location for AllBetterCare Tourism in Cumberland Valley generated an estimated 1.4 Urgent Care Center in South Middleton Township. million in overnight leisure and business travelers in 2013 and RETAIL $749.8 million in visitor spending, $35.5 million in federal Retail trade is the top industry in the Valley and shows DISTRIBUTION & MANUFACTURING taxes and $41.4 million in state & local taxes. Tourism also signiﬁ cant growth in areas like the Carlisle Pike in Hampden Cumberland Valley continues to be an attractive location for employs 6,068 people and adds $153.5 million in wages. and Silver Spring Townships with announcements of retailers, the logistics, distribution and manufacturing industries due to Each household would pay $442 more in taxes without the automotive dealers, and restaurants to occupy space along accessible transportation systems and an available, skilled tax revenue generated by the tourism industry in the county. the pike. Strong national retailers such as New England and educated workforce. These unique qualities meet the Retailers Properties have also continued to show interest demands of international and national developers such as; CAEDC is invested in this region to support local business in the Valley, as they see demand is starting to increase Goodman Birtcher, Panattoni Development, and Hillwood. It’s and a thriving economy. As the county’s designated economic as population grows at a fast pace. According to the U.S. also why companies like Carlisle Construction Materials and development agency and destination marketing organization, Census Bureau, the county is the fastest growing county in Volvo Construction Equipment continue to expand and invest CAEDC values the diversity of assets we have here in the cumberlandbusiness.com Pennsylvania since 2010 with 2.5% growth. The population in this community. region and looks forward to future responsible growth and visitcumberlandvalley.com projection for 2020, according to the Penn State Data Center, maintaining the balance that makes Cumberland Valley is 258,880. special to those who choose to live, work and visit here. (717) 240-7180 Dauphin/Cumberland Business Report 2014 13 Dauphin/Cumberland

Offi ce buildings fl ank the East Shore of the Susquehanna River in Harrisburg. PHOTO/VISITHERSHEYHARRISBURG.ORG A Diﬀ erent Kind of River Economy The Susquehanna River is no longer just a means of transportation By Barbara Phillips Long

From its origins as a trading post, the the new lines. Highway Routes 11 and 15 Harrisburg area is now thriving from a also run along the river. diff erent kind of river economy — one Some of the original industries, such that attracts housing, restaurants and as the steel industry, needed water from other businesses. the river, said August “Skip” Memmi, “Historically, the river’s been a very executive director of Dauphin County’s good thing for the city,” said Shaun Dono- Department of Community and Economic van, economic development specialist for Development. Harrisburg Regional Chamber & CREDC. Today, businesses along the river that When the city was forming, industries draw on its water supply still include A Norfolk Southern intermodal train pulls out of set up their businesses near the Susque- steel-fabricating plants, as well as the Harrisburg and crosses the Susquehanna River on the hanna River. When railroads were built, Th ree Mile Island nuclear power plant. Rockville Bridge. PHOTO/SUBMITTED the river provided fairly fl at topography for Th e railroads and rail yards construct- States, deriving 19 percent of its revenue ed earlier are now from intermodal business. In Dauphin the basis, along with and Cumberland counties, the Norfolk highways, for trans- Southern network includes the Rutherford portation and logis- intermodal facility in Swatara Township, tics businesses. “Th at Harrisburg intermodal facility on In- directly provides jobs dustrial Road and the Enola yard in East for the people who Pennsboro Township. Th e Harrisburg area live here, Donovan is a key routing point for freight rail traffi c said. “Th at’s helped moving east-west and also north-south, keep our economy and recent improvements to the Ruther- strong.” ford yard were expected to add 400 jobs. According to its Yet, the river is also a place for fi shing, website, Norfolk boating and tubing, in addition to photog- Southern operates raphy and birding, attracting both local the most extensive residents and visitors. “From a tourism Three Mile Island still uses the Susquehanna River’s water supply to produce intermodal network perspective, it’s a landmark in our region,” nuclear power. PHOTO/THINKSTOCK in the eastern United said Shireen Farr, tourism director and

14 Dauphin/Cumberland Business Report 2014 chief operating officer for Cumberland streets attracts a wide range of residents, other building in the city of Harrisburg.” Area Economic Development Corp. said Nicole Conway, executive vice The building includes fitness rooms (CAEDC), as well as a Lemoyne resident. president and general counsel. “The one and a rooftop garden in addition to park- “A lot of pictures are taken ing and neighboring retail of the river. It’s very serene.” businesses and eateries. That This viewshed has includes nearby Restaurant commercial outcomes, too. Row on Second Street, which Housing overlooking the has morphed into a sea of river on the Cumberland restaurants, bars and lounges County side, known locally over the past 10 to 15 years. as the West Shore, includes “The river adds a great “spectacular views of the deal of ambience,” Memmi river with the Harrisburg said, noting that buildings in capitol dome in the back- Dauphin County with a view ground,” Farr said. of the river can also com- Luxury housing in mand premium rents. Harrisburg puts residents Young professionals within walking distance of appreciate the chance to live the river and in the heart of in the city within walking downtown, and it seems to or biking distance of work, be in demand. For exam- The 1500 Condominium building is the first new residential highrise built in Harrisburg in restaurants, night life and rec- ple, the Lux condominium nearly 40 years. PHOTO/SUBMITTED reation, including the Harris- renovation on Third and State streets by commonality that our residents seem to burg Senators baseball and the Harrisburg Brickbox Enterprises Ltd. is opening to share is that nearly all have lived some- City Islanders soccer teams, both of which tenants in June, and more than half the where outside of Central Pennsylvania at call City Island home. building’s units have already been sold or some point in their lives,” she said. “They The Harrisburg Senators benefit from are in the process of being sold. all seem to appreciate the type of urban their location on City Island, and the team Developed by Vartan Group, the 1500 living that our building offers and all of its uses that fact in its branding, said Kevin Condominium building on Sixth and Reily features that make it so unique from every Kulp, president of the Senators franchise. Continued on page 16

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Dauphin/Cumberland Business Report 2014 15 Dauphin/Cumberland A DIFFERENT KIND OF RIVER ECONOMY

far from City Island — RockBass Grill, Dockside Willies and Dukes Bar and Grille. If their perpetually full parking lots are any indication (especially during the warmer months), the restaurants are thriving, and that helps contribute to local economic activity. The Susquehanna does affect businesses when weather causes flooding or excessive ice. If the river gets outside its banks, then it is costly for some businesses to repair damage and recover lost earnings. Excessive ice can also cause damage. The increasing cost of flood insurance is also a problem for businesses and homeowners, and Memmi said that the Dauphin County commissioners are concerned about the effect of increasing Metro Bank Park, located on City Island, is home of the Harrisburg Senators. PHOTO/VISITHERSHEYHARRISBURG.ORG premiums, which may drive housing prices down in flood-plain areas. The sense of being separate from the hus- The Harrisburg City Islanders, a USL Indirectly, the Susquehanna also con- tle and bustle of both shores of the river PRO soccer team, play at the Skyline tributes to the regional economy because appeals to the fans and the players. “It’s Sports Complex, but the team offices are its tributaries are popular fly-fishing like being in your own little world here,” he in Harrisburg. The team has proposed a destinations, particularly LeTort Run said. “It just feels like you’re secluded but new stadium that would cost about $14 in Carlisle, but also the Yellow Breech- you’re not.” million and open in 2016. Preliminary es and Conodoguinet creeks. Because The real challenge of being on an plans call for 4,500 seats, new restrooms, fishing is a more solitary activity, the island is game-day parking. “We work real locker rooms, a concession area and customers are quieter and less visible hard to get people in and out,” Kulp said. scoreboard, plus other amenities. As a than crowds at Carlisle’s well-known car However, minor league baseball isn’t multi-use fa- just about a day at the ballpark. There’s cility, it could also an emphasis on serving the commu- host concerts, nity. “The minor league market is very too. The con- Dukes Bar and Grille offers riverside dining hometown,” Kulp said. “We are a small struction proj- on the West Shore of the company, but we have a large platform. ect is expected Susquehanna River. We work with hundreds of charities in the to create about PHOTO/ERIC FORBERGER, course of a year.” 200 jobs and CUMBERLAND VALLEY The river can also negatively affect the state and local VISITORS BUREAU island and city-owned Metro Bank Park. tax revenue of Floods can leave silt on the field, which more than $1 is expensive to clean off, and the stadium million. Once and the offices are raised to deal with the facility flooding. Since the river is a hatching site opens, Delta for mayflies, it can be annoying to spec- Development tators a couple of nights a year when they Inc. projects swarm near the field. Some of the lights tax revenue of on the field were positioned to reduce the $910,000 an- annoyance when the stadium was reno- nually (about vated in 2009-10, Kulp said. Senators’ caps five times feature a picture of the mayflies, and “we greater than have some fun with it,” Kulp said. current receipts), along with an additional shows, but the visiting fly-fishing enthu- “(Recreation) is part of any successful annual $191,000 in amusement taxes for siasts provide steady business for local community,” Kulp said. “We’re just a small the city of Harrisburg. lodging, fishing equipment and gear and part, but we make an impact.” “The players and the fans absolutely related businesses. Other attractions on City Island add love our home field location here on City “People come from all over the world to the appeal for visitors. There are canoe Island,” said City Islanders President Eric to experience (the Susquehanna River),” and kayak rentals, marinas, water golf, a Pettis in a press release about the stadi- Farr said. carousel, a railroad ride around the island, um project. and other businesses and activities that The West Shore features three water- are seasonal. front restaurants in Wormleysburg, not 16 Dauphin/Cumberland Business Report 2014 On-site Staffing

Dauphin/Cumberland Business Report 2014 17 Dauphin/Cumberland

President & CEO Karns Quality Foods

By Lori Myers PHOTO/SUBMITTED

Scott Karns, president and CEO of Karns Quality Foods, has been op- WITH erating this family-owned business — founded by his father in 1959 — for more than 20 years. But he didn’t jump right into manage- SCOTT ment; he worked at the store as a teenager, and then he joined the staff full time after college, working as a buyer and a merchandiser. Karns attributes the growth of the business to being true to his family KARNS roots and the team players who run the eight locations, fi ve of which Q&A have been added during Karns’ tenure.

take advantage of the infrastructure of the butcher shop. We have the ability to react Q: Why did you and your father East Coast. to customer needs and the seasonal mar- choose this area as a base for establish- kets much quicker than the larger retailers ing and growing your business? What incentives or amenities do you that have international ties or stockholders think are missing in Cumberland and pushing set agendas rather than agen- A: Th e Karns family members are long- Dauphin counties? What would you das specifi c for the Central Pennsylvania term natives of the area, and as a result, we like to see in order to help your busi- customer. are organically in touch with the customer ness grow? base. Th is knowledge of our customers is Pennsylvania and the whole country What are some of your recent successes? truly what leads to our growth in the area. needs to be more focused on job creation In 2013, we added a store in the Car- and making our economy based on tax- lisle market, and we will be doubling the What incentives have you found in payers. Without a strong economic base, size of our location in Lemoyne in 2014. Cumberland and Dauphin counties that growth grinds to a halt, and no growth Th e Lemoyne location has been bursting attract business and economic develop- leads to lower standards of living for all. at the seams for years, and we are really ment? What makes them stand out from excited to expand this location and bring other counties in Central Pennsylvania? What’s your competitive advantage? loads of new products and departments. Central Pennsylvania has a good di- How do you shape your business to have versity of employment that has really kept a competitive advantage in the retail Beyond the move and expansion of the growth constant over the past 50 years. grocery industry? Lemoyne store, are there any new initia- Additionally, we are perfectly located to Karns truly is the LOCAL grocer and tives that you’re currently working on?

18 Dauphin/Cumberland Business Report 2014 Karns is currently working on a number health care plan with coverage for our full- What ideas do you have that you’d like to of areas to improve the shopping experi- time associates. But I am really concerned implement if given the opportunity? ence. One: an improved customer rewards that at some point this expense will be In Pennsylvania, that’s easy. Our cus- card program. Two: energy reduction growing faster than sales growth. tomers for decades have wanted to be able plans with refrigerator and freezer case re- We have always been good at taking to buy beer and placements. Three: expanded lines of local expenses out of the system that don’t af- wine in the stores. and specialty foods in all categories. fect our customer — items like packaging, Hopefully, we will energy, distribution fees and advertising. see this happen in What trends are you seeing in retail Our goal has been and always will be to the near future. grocery in this area and beyond? lower our cost of doing business without The biggest national trends are grocery the customer feeling any variance in the pickup services and expansion of store level of service they receive or products brands. Currently, we are not offering they purchase. pickup service, but we have been doing work in this area. In reference to store What are your five- and 10-year brands, we are fortunate to have the sup- growth plans? port of our distributor — Supervalu — that Karns is well positioned for the next 10 brings us great, quality store-brand lines years with excellent sites and a marketing in Essential Everyday products, Equaline, program to continue to grow our business. Super Chill and Carlita. We are planning on a major store upgrade each year at our current locations. This up- What are the biggest challenges that you grade will ensure that each store is operat- are currently facing in your business ing at the optimum level of performance. and in your industry? How are you And while we do not have any plans for handling them? additional stores, we are constantly asked Health care costs and premium costs to locate a store in York County or Juniata are going up, and it’s very much out of County, and south along Interstate 81. our hands. We have always offered a good

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Keystone Clearwater Solutions recently completed several pipeline construction Protecting projects for water transfer in the Marcellus Liquid and Utica Shale formations. PHOTO/SUBMITTED Assets Keystone Clearwater Solutions securely transfers water for the shale industry

By Jennifer Vogelsong

When Pennsylva- shale gas operators. It takes care of appli- Th e company also has two regional nia’s Marcellus Shale cation, permitting, installation, operation hubs — one in Williamsport that supports industry kicked into and maintenance of surface water intakes. the section of Pennsylvania north of Inter- high gear in 2008, Ned “I think many of the (energy) compa- state 80, and another in Seven Fields that Wehler was doing nies struggled doing this on their own, so supports western Pennsylvania past the engineering work for a they were open to having someone with Interstate 79 corridor and into Ohio and couple of key players the skill and expertise do that for them,” West Virginia. A number of yard locations in the energy market. Wehler he said. throughout the state store supplies and Because Keystone owns eight water equipment for the company’s operations. As he became familiar with the needs sources, as well as truck-loading depots, In addition to the Marcellus Shale and operations of hydraulic fracturing, it has the ability to pump water 24 hours fi elds, Keystone’s work has expanded to Wehler realized there was a demand for a day, seven days a week, 365 days a year. include projects extracting natural gas secure water supplies and protection of It can design, install and operate systems from shale in Kansas and oil in Indiana water resources. that serve a variety of hydraulic fracturing and Illinois. Of the company’s 250 full- By the end of 2009, Keystone Clear- setups, including high-volume pumps, time employees, about 80 percent work water Solutions was born. Th e Her- manifolds, tank farms and above-ground in the fi eld as construction tradesmen, shey-based company began by supplying storage and impoundments. mechanics, plumbers, technicians, truck water to support hydraulic fracturing of “Th e growth we have experienced drivers and equipment operators. the shale and by treating and properly going from serving one or two customers “Th e biggest challenge we have is disposing of fl owback water produced by to now serving about 20 diff erent energy recruiting and retaining qualifi ed person- the wells. producers has really diversifi ed the com- nel,” Wehler said. By 2013, it was the third fastest-grow- pany,” Wehler said. “We have gone beyond Th e explosive growth of the industry ing company, according to the Central supply and pumping to doing our own creates a constant demand for new hires, Penn Business Journal’s Top 50 Fastest construction, transfer, trucking and stor- yet long days working in the fi eld far from Growing Companies list. “We were very age tank service.” Th at allows the energy home can take its toll on some. “It is not excited and fl attered by that,” Wehler said. companies who make up Keystone’s client a good fi t for everyone because of the “We saw a need and decided to fi ll it.” base to deal with fewer suppliers in more intensity and dedication required for a As the Marcellus Shale industry of a one-stop-shopping setup. long time,” he said. “It is good wages and exploded, so has Keystone’s business. In Wehler said the company headquarters opportunities, but there is travel involved.” addition to learning regulations and pro- in Hershey provides access to a number of Keystone has a few competitors in cedures for water sourcing, the company scientists and engineers who are skilled in the market, but Wehler said the compa- provides intake development, frac transfer, environmental regulations governing the ny’s engineered solutions approach and water storage and turnkey pipeline con- oil and natural gas industries, as well as standard operating procedures bring a struction and management support for well-pad construction and permitting. level of quality and effi ciency that are hard Continued on page 22 Dauphin/Cumberland Business Report 2014 21 Dauphin/Cumberland PROTECTING LIQUID ASSETS

One of the company’s biggest achieve- ments is construction of permanent, un- derground water pipelines that run as far as 45 miles. It identifies the route; handles right-of-way agreements with landown- ers; obtains permits; designs, builds and delivers the system; and then operates and maintains it for the customer. “By using pipelines to deliver water, you are taking a lot of traffic off the roads,” Wehler said. Keystone also has expertise working with sensitive environments such as wetlands, endangered species, floodplains and watersheds of exceptional value. “There are special procedures you can use to minimize or eliminate any environmental impact and leave the ground the way you found it,” he said. Because the company holds only 10 to 15 percent of the market share, there is a tre- mendous opportunity for continued growth. “It is exciting to be involved with a growing Keystone’s water pipeline solutions simplify the process of supplying water for hydraulic fracturing. enterprise,” Wehler said. “We feel we are PHOTO/SUBMITTED supporting a noble cause by supplying the to match. “We are a ‘Yes, we can’ firm,” have to be able to find a way to serve cus- energy needs of America and reducing the he said. “This is a fast-paced field whose tomers as their need arises. We have built carbon footprint of our industry. We know needs are many and immediate, so we a reputation that is very attractive.” that energy can be developed safely.”

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22 Dauphin/Cumberland Business Report 2014 Dauphin/Cumberland Business Report 2014 23 Experience • Integrity • Innovation

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