Nw-Ceds-Stragegy-Rep

Table of Contents

Executive Summary...... iv Vision Statement...... vi Plan Goals...... vi Objectives ...... vii Identified Projects ...... vii

I Background ...... 1 A. Regional Location and Physical Characteristics...... 1 B. Demographic Highlights...... 12 1. Current Population...... 12 2. Age ...... 12 3. Population Diversity...... 14 4. Population Projections ...... 14 5. Educational Attainment ...... 18 6. Housing ...... 21 7. Construction and Building Permits ...... 22 C. Regional Economy...... 24 1. Income...... 24 2. Employment and Unemployment...... 27 3. Considerations of NAFTA...... 34 D. Infrastructure Systems...... 36 1. Highway ...... 36 2. Rail Transportation...... 36 3. Air Transportation ...... 37 4. Transit...... 37

II. Analysis of Economic Development Problems and Opportunities...... 39 A. Strengths, Weaknesses, Opportunities and Threats...... 39 B. Potential Economic Impact Areas...... 43 C. Industry Drivers and Economic Clusters...... 44 D. Regional Competitiveness...... 48

III. Goals and Objectives ...... 50 A. Vision Statement...... 50 B. Strategic Goals ...... 50 C. Regional Objectives ...... 51

Table of Contents

IV. Community and Private Sector Participation...... 57

V. Strategic Projects, Programs and Activities...... 58 A. Overview ...... 58 B. Long-Term Economic Development Initiatives...... 58 1. County Identified Projects ...... 59 2. Regional Opportunities ...... 70 C. Catalysts – Attracting and Retaining Talent ...... 73

VI. Action Plan and Performance Measures ...... 77 A. Action Plan...... 77 B. Performance Measures ...... 77 C. Annual Development Summit...... 78

List of Maps

Regional Base Map...... 2 Landform Analysis Map...... 3 Clarion County Base Map...... 4 Crawford County Base Map...... 5 Erie County Base Map ...... 6 Forest County Base Map...... 7 Warren County Base Map ...... 8 Lawrence County Base Map ...... 9 Mercer County Base Map...... 10 Venango County Base Map ...... 11

Table of Contents

List of Tables

Table 1: Population Trends...... 12 Table 2: Population Diversity ...... 14 Table 3: Region Population Projections and Methods ...... 15 Table 4: Cohort Method Projections ...... 15 Table 5: Linear Employment Method Projections...... 16 Table 6: State Share Method Projections...... 17 Table 7: Trend Analysis Projections...... 17 Table 8: Education Attainment ...... 18 Table 9: Education Attainment by School District (2006 -2007) ...... 19 Table 10: Construction/Building Data...... 24 Table 11: Income and Wage ...... 25 Table 12: Household Income ...... 26 Table 13: Per Capita Personal Income (PCPI)...... 27 Table 14: Largest Employers in Clarion County...... 28 Table 15: Largest Employers in Crawford County...... 29 Table 16: Largest Employers in Erie County ...... 29 Table 17: Largest Employers in Forest County...... 30 Table 18: Largest Employers in Lawrence County ...... 30 Table 19: Largest Employers Mercer County...... 31 Table 20: Largest Employer in Venango County...... 31 Table 21: Largest Employer in Warren...... 32 Table 22: Regional Top Industry Sectors...... 33 Table 23: Largest Industries in the Northwest Region (Total Employment)...... 45 Table 24: Largest Industries in the Northwest Region (Earnings Per Worker)...... 46 Table 25: Northwest Region Key Industries...... 47

List of Figures

Figure 1: Northwest Region Industry Clusters Location Quotient...... v Figure 2: Project Population % - Greater than 65 Years of Age ...... 13 Figure 3: Home Ownership Rate, 2000 ...... 22 Figure 4: Reported Residential Building Starts...... 22 Figure 5: Average Residential Building Cost (Inflation Adjusted) ...... 23 Figure 6: Unemployment Trend (2000-2008)...... 28 Figures 7 and 8: Manufacturing Trends (Northwest PA)...... 35

iii

Executive Summary

Executive Summary The Northwest Region is one of ten planning regions in the Commonwealth; the Region composed of eight counties in the northwest corner of Pennsylvania. The eight counties comprising the Northwest Region include Clarion, Crawford, Erie, Forest, Lawrence, Mercer, Venango and Warren. The region is bordered on the north by New York and the west by Ohio. The counties are linked by three major interstates I-79, I-80 and I-90, which are tremendous assets to the region’s infrastructure and transportation needs.

A Comprehensive Economic Development Strategy (CEDS) is a document created to guide the strategic development of a region’s economic growth. The Federal Economic Development Administration (EDA) provides guidelines for the strategic planning process as well as the items that should be incorporated into the document. A CEDS is required by the EDA for a region to qualify for assistance under the administration’s public works, economic adjustment and other planning programs.

Based upon work completed, a SWOT Analysis was prepared to identify strengths, weaknesses, opportunities and challenges (threats) within the region. The Region’s economic impact areas and industry drivers were identified and a Location Quotient Analysis was performed to illustrate the Region’s competiveness. The Location Quotient Analysis identified the Region’s industry clusters that can be characterized as either “current strongholds,” “emerging industries,” or “transitional industries.”

Executive Summary

Figure 1: Northwest Region Industry Clusters Location Quotient

Executive Summary

• Current strongholds are characterized by a location quotient above 1 and have significant employment and increasing competitive advantage. They show a positive change over several years. • Emerging industries or clusters are growing but do not yet have significant employment. Their location quotient is less than 1, but has been increasing over a period of time. • Transitional industries indicate those that are significant but are not a growing or dynamic component of the local economy. They have a location quotient above 1, but show a negative change or contraction over a period of time. It was these analyses that identified the potential economic growth areas of the Northwest Region and lead the Northwest Commission to develop an economic development vision statement undergirded by realistic goals and solid objectives.

Vision Statement Building upon the evaluation of the region’s existing strengths, weaknesses, opportunities and threats as well as its potential economic growth areas, the Northwest Commission developed a vision statement reflecting on the CEDS project.

“Assist the residents, businesses and industries of Northwest Pennsylvania with the development and retention of a vibrant and sustainable economy by improving the capacity and availability of infrastructure, educational, capital and work force resources.”

Plan Goals The vision statement is subsequently realized through the implementation or achievement of a series of goals. The Northwest Commission CEDS goals include: 1. Build future economic development utilizing the strengths of the region’s existing industries and businesses.

2. Leverage emerging industries relative to the region’s predominant economic sectors.

3. Expand and/or improve the road grid, utility service, fiber network and railroad facilities to enhance infrastructure capacity, connections and access between businesses within and beyond the region.

4. Promote the region’s heritage, natural resources, cultural values, educational assets and quality of life.

5. Develop cooperative relationships, outreach and recruitment which promote the expansion of regional and local work force opportunities.

6. Strengthen the specialized industry training programs for product development and fabrication.

7. Promote land use planning and policies which balance economic development opportunities with the conservation of sensitive natural resources.

Executive Summary

8. Partner with regional education providers, local governments and the business community to forge a positive perception of the Region’s industries and career opportunities.

9. Continue to expand the regional economy by leveraging existing employment opportunities and attracting additional skilled labor force by recruiting businesses and workers to the Region and fostering entrepreneurship.

10. Elevate the Region’s quality of life through the provision of affordable, equitable, and accessible human and health services throughout the Region.

11. Market the Northwest Region as an attractive and safe place to live, work and visit by producing and disseminating marketing materials related to business development, employment and quality of life.

Objectives Goals are simply left as lofty ideas without concrete steps and policy formation found within Objectives. The Northwest Region’s Objectives are organized into the following categories:

1. Manufacturing 2. Business Financing 3. Government Procurement 4. International Marketing Program 5. Tourism 6. Business Creation/Entrepreneurship 7. Keystone Opportunity Zones (KOZ) 8. Workforce Development 9. Business Retention 10. Marketing 11. Data Intelligence/Analysis Gathering 12. Fiber Optics Infrastructure 13. Other Infrastructure 14. Municipal Technology Support 15. Transportation 16. Regional Cooperation 17. Community Development

Identified Projects Based upon the identified vision statement, goals and objectives, a series of recommended regional and County-specific projects have emerged. These projects, together with the EDA criteria and the Keystone Principles for Growth, Investment and Resource Conservation as criteria defined by the Governor’s Interagency Land Use Team form the basis of the Northwest Region’s economic planning efforts. Projects are focused on:

vii

Executive Summary

1. Strategizing and pursing opportunities related to job expansion and retention 2. Enhancing central business districts 3. Encouraging growth in smaller business markets related to larger industries 4. Expanding industrial/manufacturing opportunities 5. Improving infrastructure by constructing and repairing roads, water and sewer systems 6. Supporting entrepreneurial activities 7. Promoting the region’s technology “readiness” through expansion of telecommunications, high-speed Internet access infrastructure 8. Strengthening continuity between the region’s natural resource-based tourism opportunities

viii Part I Background

I Background

A. Regional Location and Physical Characteristics The Northwest Region (Region) is one of ten planning regions in the Commonwealth; the Region composed of eight counties in the northwest corner of the State of Pennsylvania. The eight counties comprising the Northwest Region include Clarion, Crawford, Erie, Forest, Lawrence, Mercer, Venango and Warren. The region is bordered on the north by New York and the west by Ohio. The counties are linked by three major interstates I-79, I-80 and I-90, which are tremendous assets to the region’s infrastructure and transportation needs. The majority of the region is rural and agricultural. The terrain consists of mostly gently rolling topography, characteristic of the glaciation patterns from the Illinoisan and Wisconsin glaciers that once covered most of the region. The region is also comprised of a random pattern of stream beds with associated valleys and ridges.

The region has a rich history that includes a significant battle in the War of 1812, discovery of oil and the printing press. The region experienced significant industrial growth in the 1900’s and has continued to prosper since the collapse of the steel industry.

The following series of maps illustrates the physical geography of the overall Region as well as the individual counties that comprise it. The Region’s general landform characteristics are also depicted. Landform refers to the relationship of different elevations. The Region’s highest ground is in its Northeast corner, part of its more intense forested lands, while its lowest ground is in its Northwest corner, as the land drains toward Lake Erie.

1 Part I Background

Regional Base Map

2 Part I Background

Landform Analysis Map

3 Part I Background

Clari on C ount y Bas e M ap

4 Part I Background

Crawford County Base Map

5 Part I Background

Erie County Bas e M ap

6 Part I Background

Forest County Base Ma p

7 Part I Background

Warren County Base Ma p

8 Part I Background

Lawrence County Base Map

9 Part I Background

Mercer County Ba se M ap

10 Part I Background

Venang o County Base Ma p

11 Part I Background

B. Demographic Highlights

1. Current Population The Northwest Region exhibits challenges similar to other rural regions including a shrinking or stagnant population that is also aging. According to the 2000 U.S. Census, 734,284 people resided in the Northwest Region. Erie County remains the largest population in the region with over 278,977 people. In 2005, it was estimated that the region experienced a population decline of more than 10,000 people - resulting in an estimated population of 722,056 people.

Population trends are an important piece in determining a region’s vitality. The Northwest Region has experienced flat to slightly declining population growth since 1990. During the 1990’s the region grew by approximately 4,400 people - a growth rate of only 0.6 percent - with most growth occurring in Crawford and Erie Counties. The relatively flat growth rate can lead to challenges in funding infrastructure improvements, education and other government services that are generally paid for by tax dollars. However, a relatively flat growth rate can also be a strength, because the region can plan and act incrementally to meet the demands of a slower growing population.

Table 1: Population Trends

1990 Census 2000 Census 2005 Census

Clarion 41,699 41,765 40,079 Crawford 86,169 90,366 89,101 Erie 275,572 280,843 278,977 Forest 4,802 4,946 6,540 Lawrence 96,246 94,643 92,025 Mercer 121,003 120,293 118,183 Venango 59,381 57,565 55,554 Warren 45,050 43,863 41,597 Total 729,922 734,284 722,056 Source: US Census Bureau

2. Age The Northwest Region’s population has a higher percentage of persons over 65 years of age than the national average. An emergence of an older population often requires different goods and services than a younger population. According to the 2000 US Census, 16 percent of the region’s combined population was 65 years of

12 Part I Background

age and over; this compares to the State’s overall 15.6 percent and to the nation’s overall 12.5 percent. The region’s 65-and-over population is projected to increase to 18.7 percent of the total population by the year 2020. The aging population of the Region is a major concern for the sustainability of its industrial work force. The Region could be faced with the situation that they have many jobs, but without enough workers. Clarion and Venango Counties, in particular, should be mindful based upon projected aging population trends, that the amount of people over the age of 65 could likely reach 30 percent by 2030.

Figure 2: Project Population % - Greater than 65 Years of Age 35.0%

30.0% Clarion 25.0% Crawford Erie Forest 20.0% Lawrence Mercer 15.0% Venango W arren 10.0% Region State 5.0%

0.0%

15 2000 2005 2010 20 2020 2025 2030 Source: Pennsylvania State Data Center

13 Part I Background

3. Population Diversity Another facet of the Northwest Region’s population is its racial diversity. In general, the region is not diverse. The majority of the population - nearly 93 percent - is of a white, non-Hispanic origin. This compares to the Nation’s 74.1percent and the State’s 82.9 percent white, non-Hispanic population. Most of the Region’s non-white population is located in the more urbanized areas of New Castle, Sharon and Erie.

Table 2: Population Diversity NWPA Total White persons (a) 93.7% Black persons (a) 4.5% American Indian and Alaska Native persons (a) 0.2% Asian (a) 0.6% Native Hawaiian and Other Pacific Islander (a) Persons reporting two or more races 1.0% Persons of Hispanic or Latino origin (b) 1.4% White persons not Hispanic 92.5% a) Includes persons reporting only one race b) Hispanics may be of any race, so also are included in applicable race categories Source: US Census Bureau

4. Population Projections Population projections from the US Census showed that in 2010 the Region would experience growth between the years of 2006 and 2010 and have a projected population of 758,541 people. This pattern contrasts with the population decline estimated during the time period between 2000 and 2006. For that reason several methods were identified and used to project the Region’s population in 2010, 2015 and 2020. Several methods are used to project population change including the Cohort Method, the Linear Employment Method, the State Share Method and the Trend from 2000-2005 Method. These methods were used to project population at the County level and then the County projections were added together to form the regional population specific to the associated projection method. The final projected population in the region is calculated by averaging the four projection methods as shown below. Following the regional projection table is a brief description of each method and the corresponding projections.

14 Part I Background

Table 3: Region Population Projections and Methods Method Projected 2010 Projected 2015 Projected 2020 Cohort Method 803,815 778,231 823,928 Linear Emp Method 752,523 786,328 840,305 State Share Method 778,408 786,229 790,956 Trend Analysis 699,417 668,501 668,501 Average 758,541 754,822 780,923 Source: US Census Bureau

Cohort-Component Method The cohort method uses data on population by age and then applies population changes for births, deaths and migration. The migration rates were estimated based on real population changes in the period between 1990 and 2005. Pennsylvania- specific data on birth rates by the age of the mother and death rates by individual age was gathered from the National Center for Vital Statistics. A gradual decline in both birth and death rates is projected. Migration rates by age were assumed to remain more or less stable. The results of this model are heavily driven by the initial demographic makeup of the county. This model will predict growth primarily as a result of the age structure of the area.

Table 4: Cohort Method Projections 1990 2000 2005 Projected Projected Projected Census Census Census 2010 2015 2020 Clarion 41,699 41,765 40,079 44,022 42,910 43,230 Crawford 86,169 90,366 89,101 97,871 97,741 102,882 Erie 275,572 280,843 278,977 316,532 311,871 339,032 Forest 4,802 4,946 6,540 9,329 12,872 16,749 Lawrence 96,246 94,643 92,025 99,813 89,929 91,301 Mercer 121,003 120,293 118,183 130,099 121,271 125,732 Venango 59,381 57,565 55,554 61,425 58,733 61,270 Warren 45,050 43,863 41,597 44,725 42,903 43,733 Total 729,922 734,284 722,056 803,815 778,231 823,928 Source: US Census Bureau

Linear Employment Method The Linear Employment Method is a linear projection based on employment and sole proprietors in each county. Using the Federal Bureau of Economic Analysis

15 Part I Background

(BEA) data on wage and salary employment and proprietors from 1969 to 2006, five-, ten-, fifteen- and twenty-year estimates for the employment base can be projected. With data on population for the same time period, the ratio of the population and the employment base are estimated and those shares are used to estimate the population. This estimate is, in reality, a prediction of how many people you would need to support the current trend in employment.

Table 5: Linear Employment Method Projections 1990 2000 2005 Projected Projected Projected Census Census Census 2010 2015 2020 Clarion 41,699 41,765 40,079 42,947 47,098 52,415 Crawford 86,169 90,366 89,101 94,782 100,584 109,712 Erie 75,572 280,843 278,977 292,800 304,907 324,683 Forest 4,802 4,946 6,540 8,295 10,506 12,405 Lawrence 96,246 94,643 92,025 94,616 96,532 100,456 Mercer 21,003 120,293 118,183 122,485 130,348 142,143 Venango 59,381 57,565 55,554 56,604 57,905 60,923 Warren 45,050 43,863 41,597 39,994 38,448 37,568 Total 729,922 734,284 722,056 752,523 786,328 840,305 Source: US Census Bureau

State Share Method The Census Bureau provides estimates of projected population growth for the United States and for individual states. Each county’s share of state population within the time period of 1969 to 2006 is estimated and then those shares are applied to the projected state population. Since the Census estimates growth for Pennsylvania as a whole, each county is also expected to grow.

16 Part I Background

Table 6: State Share Method Projections 1990 2000 2005 Projected Projected Projected Census Census Census 2010 2015 2020 Clarion 41,699 41,765 40,079 43,702 44,142 44,407 Crawford 86,169 90,366 89,101 92,087 93,012 93,571 Erie 275,572 280,843 278,977 291,632 294,563 296,333 Forest 4,802 4,946 6,540 5,193 5,245 5,277 Lawrence 96,246 94,643 92,025 103,797 104,840 105,470 Mercer 121,003 120,293 118,183 129,034 130,331 131,115 Venango 59,381 57,565 55,554 64,405 65,052 65,443 Warren 45,050 43,863 41,597 48,557 49,045 49,340 Total 729,922 734,284 722,056 778,408 786,229 790,956 Source: US Census Bureau

Trend 2000-2005 The Census Bureau provides estimates of population for the years between the actual decennial surveys. There were significant differences between the final numbers from Census 2000 and the projections from the previous three to five years. The percent changes from 2000 to 2005 were calculated as annual estimates and then projected out to 2020.

Table 7: Trend Analysis Projections 1990 2000 2005 Projected Projected Projected Census Census Census 2010 2015 2020 Clarion 41,699 41,765 40,079 36,843 33,869 31,134 Crawford 86,169 90,366 89,101 86,606 84,182 81,825 Erie 275,572 280,843 278,977 275,270 271,612 268,003 Forest 4,802 4,946 6,540 10,755 17,688 29,089 Lawrence 96,246 94,643 92,025 86,934 82,124 77,581 Mercer 121,003 120,293 118,183 114,037 110,036 106,176 Venango 59,381 57,565 55,554 51,673 48,062 44,704 Warren 45,050 43,863 41,597 37,299 33,445 29,990 Total 729,922 734,284 722,056 699,417 681,018 668,501 Source: US Census Bureau

In assessing the population projections, a number of items must be considered. First, no projection or estimate is completely accurate. While organizations such as the U.S. Census Bureau and others seek to give the best possible representation of

17 Part I Background

what the actual situation is, until actual numbers are recorded, the estimated amount is at best a calculated guess. There are many instances where estimated numbers turned out not to represent actual trends. A good example of this is the difference between the Census estimates of the suburban population in Western Pennsylvania leading up to the 2000 census, and the census numbers themselves, which inherently reversed the perceived trends that had been taking place between 1990 and 2000.

The variation in the population projection numbers are influenced by a range of factors. One factor that caused the Cohort Method and other methods to indicate more dramatic increases in population is the weighting factor that was used. The population difference between 1990 and 2000 was more heavily weighted than the change between 2000 and 2005 (2007 Census estimates were not used). Except in the Trend method, the estimated population decreases from 2000 to 2005 (or 2007) have not been weighted more heavily than the increases from 1990 to 2000.

5. Educational Attainment Education attainment is an important factor in determining the economic potential of a region. A majority of the residents in the Region are high school graduates or have earned some form of high school education equivalency. Approximately 21 percent of all residents have had some form of college education and 11 percent of residents hold a Bachelors degree. The average high school dropout rate for the region, which is 1.4 percent, also remains below the State average of 1.9 percent. The only county above the State’s dropout rate is Venango.

Table 8: Education Attainment

Education (age 25+) NWPA Total

High school graduates, % of persons age 25+ 83.1% Bachelor's degree or higher, pct of persons age 25+ 17.4% Source: US Census Bureau

Another interesting facet of the Northwest Region in terms of education is its high level of graduation rates in each county. The table below illustrates the number of 12th Grade students enrolled compared to the number of graduates reported for the year. (SD= School District)

18 Part I Background

Table 9: Education Attainment by School District (2006 -2007) 12th Grade Total Graduation Enrollme Graduate Rate nt s (percent) Clarion Allegheny-Clarion Valley 68 67 98.5 Clarion Area SD 78 75 96.2 Clarion-Limestone Area SD 78 71 91.0 Keystone SD 73 71 97.3 North Clarion County SD 57 56 98.2 Redbank Valley SD 123 117 95.1 Union SD 58 56 96.6 Crawford Conneaut SD 214 206 96.3 Crawford Central SD 286 265 92.7 Penncrest SD 324 299 92.3 Erie Corry Area SD 198 194 98.0 Erie City SD 819 730 89.1 Fairview SD 121 110 90.9 Fort Lebeuf SD 155 148 95.5 General McLane SD 195 192 98.5 Girard SD 134 119 88.8 Harbor Creek SD 181 173 95.6 Iroquois SD 97 94 96.9 Millcreek Township SD 577 561 97.2 North East SD 149 143 96.0 Northwestern SD 158 150 94.9 Perseus House CS of Excellence 100 60 60.0 Union City Area SD 99 94 94.9 Wattsburg Area SD 134 131 97.8 Forest Forest Area SD 58 60 103.4*

19 Part I Background

Table 9: Education Attainment by School District (2006 -2007) - Continued Graduation 12th Grade Total Rate Enrollment Graduates (percent) Lawrence Ellwood City Area SD 154 148 96.1 Laurel SD 97 95 97.9 Lawrence County CTC 115 104 90.4 Mohawk Area SD 149 149 100.0 Neshannock Township SD 121 119 98.3 New Castle Area SD 211 199 94.3 Shenango Area SD 96 93 96.9 Union Area SD 58 57 98.3 Wilmington Area SD 124 120 96.8 Mercer Commodore Perry SD 54 50 92.6 Farrell Area SD 62 57 91.9 Greenville Area SD 117 111 94.9 Grove City Area SD 220 220 100.0 Hermitage SD 170 170 100.0 Jamestown Area SD 57 52 91.2 Keystone Education Center CS 57 50 87.7 Lakeview SD 111 109 98.2 Mercer Area SD 117 114 97.4 Reynolds SD 119 116 97.5 Sharon City SD 151 135 89.4 Sharpsville Area SD 116 112 96.6 West Middlesex Area SD 123 110 89.4 Venango Cranberry Area SD 110 109 99.1 Franklin Area SD 207 191 92.3 Oil City Area SD 199 172 86.4 Titusville Area SD 179 162 90.5 Valley Grove SD 53 47 88.7

20 Part I Background

Table 9: Education Attainment by School District (2006 -2007) - Continued Graduation 12th Grade Total Rate Enrollment Graduates (percent) Warren Tidioute Community CS 20 19 95.0 Warren County SD 448 425 94.9 Northwest Region 8349 7857 94.1 Pennsylvania 137,174 128,603 93.8 Note: Bold numbers indicate that a district meets or exceeds the comparison values; *May indicate some form of reporting error. Source: Pennsylvania Department of Education, Bureau of Assessment and Accountability; US Census Bureau

6. Housing

Home Ownership The home ownership rate is calculated by dividing the number of owner-occupied housing units by the number of occupied housing units or households. Home ownership rates can be an important indicator of a region’s economic strength. According to the Federal Reserve Board, on average a homeowner’s net worth is 46 times that of a renter’s. Data from the U.S. Census indicates that homeowners are less likely to move than renters, are more likely to be involved in the community and are more likely to partake in political decisions to protect their investment. Factors such as these indicate a stable work force. Forest County has the highest home ownership rate in the Northwest Region. This could be attributed to several factors such as the rural nature of Forest County or the higher percentage of elderly. Nearly all of the counties within the Region are above the State’s home ownership rate (74.7 percent) and none are below the Nation’s average (67.4 percent).

21 Part I Background

Figure 3: Home Ownership Rate, 2000

85%

80%

75%

70% Clarion Forest 65% Lawrence Venango Crawford Warren Erie Mercer

60%

Source: US Census Bureau

7. Construction and Building Permits New residential construction within a region can be an indication of a region’s need to house growth; not just in terms of population growth, but also in terms of new and/or expanding business. A tool to measure the Northwest Region’s need includes analyses of the number of building starts in each county. Building starts means any activity in which new construction for a residential building has started and has been reported. Figure 4 indicates that the number of building starts has decreased in every county except Erie since 2000.

Figure 4: Reported Residential Building Starts

700 600 500 400 2000 300 2007 200 100 0 Clarion Crawford Erie Forest Lawrence Mercer Venango Warren County County County County County County County County

Source: US Census Bureau

22 Part I Background

This decline in new residential construction has the potential to mean several things. First, there have been patterns of rapid growth in the housing stock throughout the country. Rapid growth in housing stock can lead to surplus and the time period measured in this study may be a measure of the demand catching up to the supply.

Secondly, in some cases, counties can use this information to evaluate permit costs associated with new residential construction. Some find that permit costs tend to depress development in certain areas and push it towards other areas with more inexpensive costs. Depending upon the economic outlook for an overall area, developers may opt to build in another location depending on the degree of the financial burden. Further analysis would be required to determine if this were the case and probably should be determined on a more local scale.

Lastly, average building cost may also be an indicator of the value of the land within each of the counties. As an example, it may be more expensive to build in Erie and Lawrence Counties due to the demand of the property.

Figure 5: Average Residential Building Cost (Inflation Adjusted)

$200,000 $180,000 $160,000 $140,000 $120,000 2000 $100,000 $80,000 2007 $60,000 $40,000 $20,000 $-

y y y ty y y y y unt ount o oun C rie C E est rcer Count For e Clarion C M Warren Count Crawford Count Lawrence Count Venango Count Source: US Census Bureau

23 Part I Background

Table 10: Construction/Building Data

Avg Building Cost Construction Avg Building (2000 Inflation 2000 Buildings Units Cost Cost (2000) Adjusted to 2007) Clarion 102 106$ 8,062,871 $ 79,048 $ 97,219 Crawford 165 175$ 14,944,773 $ 90,574 $ 111,395 Erie 581 688$ 72,159,260 $ 124,198 $ 152,748 Forest 18 18$ 685,000 $ 38,056 $ 46,804 Lawrence 198 266$ 26,649,247 $ 134,592 $ 165,531 Mercer 295 420$ 36,908,761 $ 125,114 $ 153,875 Venango 91 117$ 8,485,422 $ 93,246 $ 114,681 Warren 84 84$ 5,955,931 $ 70,904 $ 87,203

Construction Avg Building 2007 Buildings Units Cost Cost 2007 Clarion 40 41$ 4,189,131 $ 104,728 Crawford 120 120$ 13,133,855 $ 109,449 Erie 591 788$ 99,384,162 $ 168,163 Forest 2 2$ 105,000 $ 52,500 Lawrence 80 85$ 14,682,256 $ 183,528 Mercer 136 138$ 20,787,800 $ 152,851 Venango 43 43$ 5,372,172 $ 124,934 Warren 30 30$ 3,631,900 $ 121,063

C. Regional Economy

1. Income According to the U.S. Census, 13.9 percent of residents reported an income of less than $24,999, with an overall median income of $35,126. The Region’s median income is approximately 21 percent less than the State of Pennsylvania which has a median income of $47,913.

24 Part I Background

Table 11: Income and Wage Median household Persons below Average Weekly income poverty Wage Clarion $34,110 12.7% $552 Crawford $35,386 13.2% $599 Erie $37,876 13.7% $669 Forest $29,217 14.8% $634 Lawrence $36,079 13.1% $628 Mercer $36,536 13.0% $627 Venango $34,403 14.0% $608 Warren $37,399 11.2% $620 NWPA $35,126 13.3% $617 Source: US Census Bureau

Household Income A region’s median household income and percent of the population below the poverty level can be important indicators in the area’s economic performance. The Northwest Region’s median household income is well below Pennsylvania’s median household income level. Clarion County has the lowest median household income in the region, while Erie has the highest. The region’s number of people below the poverty level is also significantly higher than the Commonwealth’s. It is significant to mention that Erie, while the largest urbanized area has the lowest percent of the population below the poverty level.

25 Part I Background

Table 12: Household Income Households Percent Persons 2007 Median with Households Below Projected Household Income $0 - below Poverty Population Income $24,999 $24,999 Threshold Clarion 40,385 $37,666 5,529 13.7% 15.4% Crawford 89,389 $36,928 11,014 12.3% 13.2% Erie 279,811 $42,073 31,612 11.3% 10.1% Forest 6,506 $27,581 914 14.0% 12.0% Lawrence 91,795 $41,491 10,892 11.9% 12.6% Mercer 118,551 $40,353 13,922 11.7% 12.1% Venango 55,488 $37,053 7,175 12.9% 14.3% Warren 41,742 $39,602 5,166 12.4% 12.6% NWPA 723,667 $37,843 86,224 11.9% 13.3% PA $47,913 11.9% Source: US Census Bureau

This section of the document provides a brief glimpse into past and present trends in the Northwest Region’s economy. This “snapshot” provides information on the Region’s economic stability and the public’s quality of life, as well as a few strengths and weaknesses that decision makers can begin to key in on. It is important to gain understanding of a region’s current conditions and past trends in order to have a better understanding of the processes required to obtain the goals that the communities wish to achieve.

Per Capita Income The per capita personal income (PCPI) of the region has remained well below the State average and the national average at least since the 1990’s. The average annual percent growth has also lagged significantly behind both the state and national averages, where only Clarion County had a per capita increase above the State and national averages. Since 2000, the Region’s employment rate has decreased by 1.45 percent while the State’s total employment rate has remained constant.

26 Part I Background

Table 13: Per Capita Personal Income (PCPI) Average Annual PCPI 1996 PCPI 2006 % Change Clarion $18,378 $28,425 4.5 Crawford $18,675 $25,914 3.3 Forest $17,434 $19,479 1.1 Erie $21,308 $28,767 3.0 Lawrence $19,670 $28,629 3.8 Mercer $19,670 $28,629 3.8 Venango $19,944 $28,534 3.6 Warren $20,700 $28,773 3.3 Pennsylvania $24,344 $36,825 4.2 Nation $24,175 $36,714 4.3 Source: US Census Bureau

2. Employment and Unemployment Employment in the Region as a whole has remained fairly steady within recent years. Unemployment levels peaked at 6.4 percent but then declined to reach fairly stable levels of 5.0 percent in 2007. In Pennsylvania, unemployment levels averaged 4.3 percent in 2007. Other than State Government jobs, employment in the Region rests primarily in the manufacturing and retail industries, of which General Electric Company and Wal-Mart are the Region’s largest employers. Because of the current national economic downturn, the region’s unemployment rate is likely to increase in line with the national unemployment rate. The following chart measures the unemployment rate for each county within the region from January 2000 to June 2008 and indicates that the unemployment rate through six months of 2008 began to rise in all but Forest County. Each County’s unemployment rate was significantly higher than the State’s (3.7 percent) as well as the Nation’s (4.2 percent) at the conclusion of 2007.

27 Part I Background

Figure 6: Unemployment Trend (2000-2008)

16.0% Clarion 14.0% Crawford 12.0% Erie 10.0% Forest 8.0% Lawrence 6.0% Mercer 4.0% Venango 2.0% Warren 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: US Department of Labor, Bureau of Labor Statistics

Top Industry Sectors Upon gaining an understanding of population and what percentage of it is employed, analysis can occur to determine where the population is employed and in what industry sectors employment occurs. Such an understanding will help guide the Region as it creates and carries out it economic goals.

Top Employers by County (Number of Employees) This section, arranged alphabetically by County name, outlines the top five employers, by number of employees in 2006.

Table 14: Largest Employers in Clarion County Employer Industry State System of Higher Education Education New Era Building Systems, Inc Manufacturing Clarion Hospital Health Care Wal-Mart Associates, Inc Retail Owens-Brockway Glass Container, Inc. Manufacturing Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis

Clarion – The State System of Higher Education is the largest employer in Clarion County and includes Clarion University faculty and staff.

28 Part I Background

New Era Building Systems, Inc is a business that creates and builds pre- manufactured housing. Their facility builds the homes from the floor up and then ships the house to its designated site.

Clarion Hospital is the third largest employer in the county followed by Wal-Mart and Owens-Brockway Glass Container, which is the leading producer of glass containers in North America.

Table 15: Largest Employers in Crawford County Employer Industry Meadville Medical Center Health Care Pennsylvania State Government Government Services Crawford Central School District Education Wal-Mart Associates, Inc. Retail Crawford County Government Services Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis Crawford – There are only two private industries in the list of top 5 employers in Crawford County: the Meadville Medical Center and Wal-Mart Associates, Inc. The Meadville Medical Center is the largest employer in Crawford County and the State Government is the second.

Table 16: Largest Employers in Erie County Employer Industry General Electric Company Manufacturing Erie Indemnity Company Insurance Hamot Medical Center Health Care Saint Vincent Healtcare Center Health Care Wal-Mart Associates, Inc Retail Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis Erie – Erie is one of two counties in the Region that does not have a public industry sector in the list of top 5 employers. At the top of the list is General Electric Company, which is a supplier to the railroad, marine, drilling, wind and mining industries.

29 Part I Background

Erie Indemnity Company is locally based insurance company providing automobile, homeowners and other coverage to individuals and businesses throughout the State. The third and fourth employers provide health care to the population of Erie County, and Wal-Mart again makes the list as number five.

Table 17: Largest Employers in Forest County Employer Industry Pennsylvania State Government Government Services Cornell Companies Inc Professional Services Snyder Memorial Health Care Forest Area School District Education Industrial Timber and Land Company Manufacturing Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis Forest – The Pennsylvania State Government is the largest employer in Forest County. Cornell Companies Inc. is the second largest and provides administrative support, such as payroll services to its clients. Industrial Timber and Land Company is the fifth largest employer in Forest County and is a producer and manufacturer of kiln-dried hardwood lumber and veneer logs.

Table 18: Largest Employers in Lawrence County Employer Industry Jameson Memorial Hospital Health Care Pennsylvania State Government Government Services Liberty Mutual Insurance Company Insurance The Tamarkin Company Health Care New Castle Area School District Education Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis Lawrence – Health Care is the largest employer in Lawrence County with the Jameson Memorial Hospital located in New Castle, Pennsylvania. The Tamarkin Company also provides health care services and is listed as the fourth largest employer in the county. Liberty Mutual Insurance Company is the third, and like Erie Indemnity, offers an assortment of insurance to both public and private clients.

30 Part I Background

Table 19: Largest Employers Mercer County Employer Industry Sharon Regional Health System Health Care UPMC Horizon Health Care John Maneely Company Manufacturing General Electric Company Manufacturing Wal-Mart Associates Inc Retail Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis

Mercer – Sharon Regional Health System and UPMC Horizon are the two largest employers in Mercer County and provide many forms of health care services to the public. Manufacturing plays a very important role in Mercer’s economy as the third and fourth largest employers. The John Maneely Company manufactures steel pipe for a number of uses such as electrical and fencing.

Table 20: Largest Employer in Venango County Employer Industry Pennsylvania State Government Government Services Joy Mining Machinery Manufacturing UPMC Northwest Health Care Oil City School District Education Bacou-Dalloz Fall Protection Inc Manufacturing Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis

Venango – Two manufacturing companies are in the top five largest employers in Venango County as well. Joy Mining Machinery provides equipment for the mining industry throughout Pennsylvania and the rest of the country. Bacou- Dalloz Fall Protection Inc. designs, manufactures, and sell personal protective equipment to protect men and women against hazards in the workplace.

31 Part I Background

Table 21: Largest Employer in Warren Employer Industry Blair Retail Catalog Company Warren County School District Education Pennsylvania State Government Government Services United Refining Company Manufacturing Warren General Hospital Health Care Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis

Warren – Blair is the largest employer in Warren County as a retail catalog company and ships their retail line all across the United States. The Warren County School District and the Pennsylvania State Government are the second and third largest employers, respectively. The United Refining Company, according to its website, refines and markets petroleum products. Among their many operations, United owns and operates several retail gasoline stations such as Country Fair and Kwik Fill and a trucking facility in Erie.

Top Industry Sectors It is also important to analyze the Region’s top industry sectors not just each top employer. The following tables show the top Industry Sectors ranked by the number of employees within that sector. It also shows the sectors average quarterly employment for four quarters in 2007, growth in employment, the hiring growth and the average monthly earnings for the time period between the four quarters of 2007. “Growth in employment” indicates a sector’s ability to accept new employees while “hiring growth” indicates the number of employees hired during that particular time period. For this reason, “growth in employment” may have decreased while “hiring growth” increased.

32 Part I Background

Table 22: Regional Top Industry Sectors Average Hiring Average Quarterly Growth in Growth Monthly Employment Employment (%) Earnings (2007Q1 - (%) (2006- (2006- (2007Q1 NAICS Industry Name Q4) 2007) 2007) - Q4) Ambulatory Health Care 1 14,781 20 -28 $3,283 Services Fabricated Metal Product 2 12,773 -16 136 $3,039 Manufacturing Nursing and Residential Care 3 12,004 -20 1 $2,374 Facilities Administrative and Support 4 11,621 7.00 -125.00 $1,982 Services 5 Hospitals 9,091 133 204 $4,555 6 Machinery Manufacturing 7,098 -10 -18 $4,384 Professional, Scientific, and 7 7,012 -85 -262 $2,882 Technical Services Plastics and Rubber Products 8 6,188 42 51 $2,477 Manufacturing 9 Specialty Trade Contractors 5,996 16 126 $2,554 Transportation Equipment 10 5,438 0 52 $5,333 Manufacturing 11 Educational Services 5,431 -35 -120 $3,655 12 Primary Metal Manufacturing 4,029 32 -110 $4,610 13 Wood Product Manufacturing 2,590 16 -7 $2,823 14 Truck Transportation 2,520 -2 23 $2,823 15 Food Manufacturing 1,231 -16 26 $1,956 Nonmetallic Mineral Product 16 1,035 2 67 $4,597 Manufacturing Computer and Electronic 17 617 13 -92 $2,745 Product Manufacturing 18 Miscellaneous Manufacturing 367 -3 59 $2,193 Petroleum and Coal Products 19 325 8 32 $2,347 Manufacturing Furniture and Related Product 20 235 -6 -13 $2,653 Manufacturing Source: US Department of Labor, Bureau of Labor Statistics

33 Part I Background

3. Considerations of NAFTA A portion of the planning process explored the relationship between the timing of NAFTA and regional manufacturing employment trends. The following two figures illustrate these patterns. Northwest Pennsylvania was one of many regions in the Commonwealth and the United States who experienced impacts from the general decline in manufacturing during these years.

34 Part I Background

Figures 7 and 8: Manufacturing Trends (Northwest PA)

Manufacturing in PA and Northwest PA, 1969-2006

NW CEDS Other PA

6% NAFTA

0 72 78 86 02 974 980 982 988 994 996 998 1 -19 1 1 1 -1 1 1 -2% 3- 9- 1- 7- 9-1990 5- 7- 3-2004 69-1970 71-19 7 77 7 8 83-1984 85-19 8 8 91-1992 93 9 9 99-200 01-20 0 9 9 19 19 19 1975-197619 19 19 1 19 19 19 1 19 19 19 19 20 20 2005-2006

-4%

-6% Annual Employment Change

-8%

-10%

-12%

-14%

120,000

100,000

NAFTA

80,000

60,000 Employment

40,000

20,000

- 1969 1974 1979 1984 1989 1994 1999 2004 Source: Bureau of Economic Analysis, REIS.

35 Part I Background

D. Infrastructure Systems

1. Highway Northwest Pennsylvania possesses four interstate highways: I-90, I-86, I-80 and I-79. Their alignments, three (3) traveling east-west and one (1) traveling north- south, respectively, provide businesses, residents and other travelers with the ability to directly access five of the region’s eight counties. Most significantly, these limited access Interstates link the Northwest Region to larger markets including: • Boston through Albany, Syracuse, Rochester, Buffalo, Cleveland and the Trans Canada Highway [Toronto and Quebec] (via I-90); • New York (via I-80 east) • Chicago (via I-80 west); and • Pittsburgh and Charleston (WV) (via I-79).

Based upon 2006-2007 PennDOT’s average daily traffic data, there are approximately 25,000 (north) and 35,000 (south) vehicles which travel on I-79, 30,000 vehicles on I-80 and 40,000+ vehicles traveling on (I-90 east of Erie)1. Based on PennDOT’s truck volume records, more than 13,000 trucks were recorded passing through the PA-290, PA-430 & I-90 Interchange every forty-eight hours. On I-80, between US-19 & I-79, an average 3,600 trucks were recorded within this segment during a two-day period.2

The region’s other primary State routes include Route 6, Rt. 62, Rt. 66, State Road 322 and Route 8. Again, based upon 2006-2007 PennDOT’s average daily traffic data, the northern portion of Route 8 has over 10,000 cars in an average day while the southern portion of the roadway has nearly 20,000 vehicles a day. Portions of Route 6 experience between 10,000 and 20,000 vehicles on an average day. Other portions of this designated PA Heritage Route host between 5- and 10,000 vehicles on an average day.

2. Rail Transportation In addition to highway travel, freight rail service links the Northwest Region’s businesses to other regional markets. The two major railroads Norfolk Southern (NS) and the Bessemer Subdivision of the Canadian National Railway Company (CN) [formerly Bessemer and Lake Erie Railroad].

The Norfolk Southern operates on three lines, one passing through Erie to points west, via Cleveland and points north and east via Buffalo; a second line passes through Mercer and Venango Counties to Youngstown, Ohio via Cleveland and to

1 20,000+ vehicles in an average day travel west of Erie. 2 PennDOT truck data is gathered based upon 48-hour periods.

36 Part I Background

the east via Binghamton (NY); and the third line passes through New Castle and Lawrence County on its way from Cleveland and Youngstown to Pittsburgh and points beyond. The CN’s Bessemer line provides freight services between Erie and Pittsburgh. Connection between most of the Region’s larger communities and the railroads’ rights-of-ways are prevalent. Three shorter line railroads in the Region include the Oil City and Titusville, the Buffalo and Pittsburgh, and the Western New York and Pennsylvania.

As Pennsylvania’s only port on Lake Erie, the Port of Erie accommodates both commercial shipping and recreational boating. Products travel along the Great Lakes, and to various US coastal and European markets with stops to load and unload cargo in Erie. Manufacturers can also use the Port of Erie to move bulk goods in the Great Lakes network and through the St. Lawrence Seaway to and from European markets. The port is served by railroads operating in the area. The Port’s draught berth (27 feet deep) provides approximately 100,000 square feet of covered storage.

3. Air Transportation Air cargo shipments can be made by trucking products to major international airports in Pittsburgh and Cleveland. For some portions of the region Pittsburgh International Airport is less than two hours away. BufffCleveland’s Hopkins International Airport is between 2 to 3+ hours away from residents and businesses within the region. Commercial, passenger and airfreight service is available at Erie International Airport in Erie and the Venango Regional Airport in Franklin. Smaller, local service airports are located in, Clarion, Corry, Meadville, Titusville, and Greenville.

4. Transit In addition to the existing transportation network, the Region is working on other planning strategies in order to further strengthen and optimize transportation efforts for businesses and residents of the Northwest Region. The two main plans include The Northwest Commission’s Strategic Plan (2008) and the Region’s Long-Range Transportation Plan. A pertinent goal in the Northwest Commission Strategic Plan includes “creating high quality transportation infrastructure to support economic development, quality of life, and job creation/retention in northwest Pennsylvania.”

Furthermore, as part of the Region’s Long-Range Transportation Plan, eight goals aim at improving the effectiveness and efficiency of its transportation network. These goals include:

1. Support the region’s economic vitality. 2. Increase transportation system safety.

37 Part I Background

3. Increase transportation system security. 4. Increase accessibility and mobility options available to people and for freight. 5. Protect and enhance the environment, promote energy conservation, and improve quality of life. 6. Enhance the regional transportation system’s integration and connectivity. 7. Promote efficient transportation management and operation. 8. Give priority to transportation system preservation.

To advance these goals, the Commission has outlined performance measures, specific work activities, scheduling, annual budgeting/funding goals and performance reporting measures. The planning efforts which emerge as part of this Comprehensive Economic Development Strategy should consider each of these above concepts and further promote ways in which the businesses and residents of the region can achieve its goals.

38 Part II Analysis of Economic Development Problems and Opportunities

II. Analysis of Economic Development Problems and Opportunities

A. Strengths, Weaknesses, Opportunities and Threats As part of preparing the Comprehensive Economic Development Strategy, project participants - those with both regional and county perspectives - were asked to identify the ways in which the region’s existing general characteristics were either strengths or weaknesses to realizing potential desired outcomes. As a result, a series of opportunities and threats were then identified. This assessment, often referred to as a SWOT analysis, identifies the following considerations:

Strengths Diverse landscapes The region represented by the Northwest Commission is composed of diverse landscapes – both rural and urban places offer residential and non-residential opportunities for the region’s population.

Rural and historic heritage As part of the region’s rural landscapes, community history and pride are evident. Within Northwest Pennsylvania, there are numerous recognized historical sites and annual events devoted to community heritage. Two regional-scale examples are Route 62 which spans from Niagara Falls, New York to El Paso, Texas, running through Northwest Pennsylvania. The Route is nationally recognized for its cultural and tourism attractions. Another is Route 6 which travels through eleven counties in Pennsylvania and crosses over 400 miles in northern Pennsylvania and encounters many of the Keystone State's historic treasures and scenic places.

Low crime rate Annually, there are fewer than 25 crimes per 1,000 persons within the region’s eight counties where the Pennsylvania rate is 29 crimes per 1,000 persons and the national rate is 41 crimes per 1,000 persons.

Affordable cost of living The median household income within the region is $35,126, as compared to the State’s median household income of $46,259. The region’s median home value in 2000 was $69,075 whereas Pennsylvania’s median home value was $97,000 compared to the nation’s median home value of $119,600.

State parks and scenic places Natural and scenic resources are one of Northwest Pennsylvania’s treasures. A majority of the region is classified as agriculture, open space and forest lands.

Other natural resources In addition to the region’s recreation-focused resources, natural resources provide the foundation of many industrial-oriented economic opportunities: water, gas, oil, timber, and quarry sites.

39 Part II Analysis of Economic Development Problems and Opportunities

Network of Interstate and other regional access routes With miles of Interstate (I-80, I-90 and I-79) hosting between 25,000 and 40,000+ vehicles per day, this primary network of interstates provides access to six of the region’s eight counties. The supporting network of State Route 62, Route 6 and Route 8 are constructed and provide quality access to the remaining two counties of the region.

Proximity to economic areas and markets Given the region’s road, rail and air-based infrastructure, businesses are accessible to other markets in the Tri-State - including Pittsburgh, PA, Cleveland, OH and Buffalo, NY.

Established workforce As part of the region’s commercial and industrial basis, a long-established workforce exists including more than 56,000 manufacturing jobs - or approximately 19 % of the 290,000 of all non-agriculture jobs in the region. More than 47,000 of the region’s jobs are health-care related.

Manufacturing/factory architecture Based upon the constructed square footage of industrial-oriented architecture, there is abundant existing manufacturing and/or factory building stock in the region.

Established education opportunities In addition to the many institutions of higher education in the region, there are numerous trade/applied technical schools which offer curriculum to students of varying ages on an average annual basis.

Weaknesses Divided region and lack of identity Based upon the combination of topographic changes and road infrastructure, Northwest Pennsylvania is commonly known as a region divided by its own geography. Physical separation between communities also contributes to the region’s general lack of an overall identity.

Population density Having approximately 730,000 residents within the region’s 5,500 square miles produces an average of 135 residents per square mile in Northwest Pennsylvania. This is significantly less compared to the Cleveland and Pittsburgh regions. Moreover, the low intensity of residents and development increases travel distances between destinations.

40 Part II Analysis of Economic Development Problems and Opportunities

Aging Workforce Within the next ten years, a significant percentage (20%) of the workforce-aged population will be approaching the traditional retirement age of 65.

Lack of zoning Some communities in the region do not control zoning at the local level. Served by general ordinance regulations managed at the County-level, these communities are not easily able to customize or work with potential businesses to address unique site and/or development opportunities.

Limited municipal cooperation To date, few communities currently are or have implemented joint municipal planning strategies. Based upon current grant and economic opportunities encouraged and available through the Commonwealth, priority funding considerations for multi- municipal initiatives is increasing.

Stagnant population growth Over the last two decades, the region’s overall population has remained relatively stagnant or unchanged.

Lack of diversity In general, the communities of Northwest Pennsylvania have relatively homogenous demographic patterns. Where population diversity exists, it is located within Erie County – primarily the City of Erie itself.

Youth flight On a broad scale, there are a significant number of youth who elect to find other opportunities for jobs outside of the region rather than electing to stay within Northwest Pennsylvania.

Aging infrastructure In general, sanitary sewer and water infrastructure services a limited percentage of the Northwest region and many of the existing systems are deteriorated due to age.

Limited rail access Railroad travel between industrial- and commercial-oriented development has declined over the years.

Communications infrastructure A significant number of communities and portions of the Northwest Region lack telecommunications and high speed Internet access; the system of fiber optics is also fragmented.

41 Part II Analysis of Economic Development Problems and Opportunities

Opportunities Strengths of industries to leverage other industries Based upon the range and divergence of existing industries, Northwest Pennsylvania companies have the opportunity to pursue and build relationships that can expand to both broader and new markets.

Alternative energy movement Based upon the international movement toward more efficient energy systems and the established expertise existing in the region today, the businesses of the region have the opportunity to further expand in type and quantity to serve this growing industry.

Factory architecture and skilled workers With established development areas and work force, the region has the opportunity to market itself as a community with existing investments that can easily be expanded.

Natural amenities The presence, accessibility and diversity of natural resources provide the region with existing amenities upon which tourism and recreation opportunities can be expanded.

Capturing youth to the work force The number of residents approaching workforce employment represents approximately eight percent (8%) of the population. By growing cooperation between technical school programs and regional development strategies, there becomes a system in place to capture and train an existing population before it elects to leave the region in search of equal opportunities.

Increasing the job-to-worker ratio Based upon potential business growth, based upon the range and divergence of existing industries, Northwest Pennsylvania companies have the opportunity to pursue and build relationships that can expand to both broader and new markets.

Threats Impact of a recession on economy National and international economic patterns influence local and regional markets. The length of time that communities and the region may be impacted by these trends is unknown.

Available state and federal funding Based upon recent national trends, it is anticipated that the availability and/or extent of state and federal funding could be lessened or targeted toward specific areas of interest or industry.

42 Part II Analysis of Economic Development Problems and Opportunities

Competition against other Regions Given current economic conditions, other regions in the tri-state area, such as Cleveland, Buffalo, Pittsburgh, are also vying to attract emerging and expanding businesses. The scale of regions “competing” for businesses is greater than in recent years.

Skyrocketing cost of health care Costs of health care have increased dramatically in recent years. Some businesses that may be unable to absorb these costs could face a point in time where decisions may necessitate changes to what health care options and/or extent of coverage is provided by the traditional entity covering health care - businesses.

Continued stagnant population With a limited influx of new residents and a general pattern of smaller household sizes, the region could be challenged to maintain or expand its existing services and amenities without the existing population incurring greater costs to cover desired improvements.

Costs of fully developing infrastructure systems The extent and types of desired infrastructure improvements, inclusive of fiber optics, could be significant without identifying strategic cooperative opportunities between the public and private sectors.

Aging population’s effects on industry longevity As the region’s population ages, communities could be challenged to identify how new and/or necessary technical skills can be maintained and/or grow by those that remain within their working years.

B. Potential Economic Impact Areas The U.S. economy is currently going through a period of “rebalancing” and retraction. This is a time where higher growth of nonresidential investment and exports are offsetting the lower rates of housing investment. The economy’s output (real Gross Domestic Product or GDP) is projected to fall at an annual rate of 2.2 percent in the second half of 2008, while the unemployment rate is projected to rise from 6.8 percent in December 2008 to 7.8 percent in December 2009. Inflation is expected to average 0.5 percent in 2009 and consumer prices are then expected to increase 2.1 percent in 2010.

A comparison of the Gross Regional Product of the Northwest Region with both the Gross State Product of Pennsylvania and the Gross Domestic Product of the United States indicates that the regional economy follows the trends of the others, but lags behind and reacts more strongly. This is due primarily to the size and impact of large, mature industries in the region that are labor intensive. When the U.S. GDP drops, the

43 Part II Analysis of Economic Development Problems and Opportunities

regional economy drops significantly, but also recovers quickly due to the direct influences of economic effects.

The near-term pattern of consumer spending is unknown. The Federal Reserve Bank of Philadelphia’s December 2008 biannual Livingston Survey revised economic growth estimates downward for 2008 and 2009. In Pennsylvania, economic growth is expected to be minimal in the immediate future.

Based on a series of leading indicators making up a coincident index (nonfarm payroll employment, average hours worked in manufacturing, unemployment rate, wage and salary disbursements deflated by the CPI), the Federal Reserve Bank in Philadelphia estimates there to be little to no growth in the state economy possibly beyond 2008 due to the subprime lending problems in the financial sector and the slowdown in the residential housing and real estate markets. The Wachovia Economic Group projects a drop in economic growth because of the crippling credit crunch. The credit crunch in the mortgage market, specifically the sub-prime market, and the on-going volatility in the corporate debt markets, will result in a longer period of downtime in the housing market. The increased aversion to risk has resulted in a slowdown in fixed investments and subsequently, the U.S. economy has been experiencing a significant housing correction for approximately the past two years. These factors most likely will have a negative impact on the Northwest Region’s economic growth potential for the next few years.

C. Industry Drivers and Economic Clusters Identifying indigenous assets is a key strategy for a diverse economy composed of urban and rural opportunities. One asset that researchers and economic developers often evaluate is the presence of existing or emerging industries and economic clusters. The term industry is used to describe either a specific business activity - such as “semiconductors” - or a generic business activity such as “consumer durables.” Industries are sometimes identified by a Standard Industry Code (SIC) or by the more updated and commonly used North American Industry Classification (NAIC) system. If an organization or company participates in multiple business activities, it is usually considered to be in the industry from which most of its revenue is derived.

44 Part II Analysis of Economic Development Problems and Opportunities

Table 23: Largest Industries in the Northwest Region (Total Employment) 8-County Region Total Earnings Per Industry Employment Worker Manufacturing 56,255 $42,360 Health Care and Social Assistance 47,544 $31,248 Retail Trade 38,366 $20,523 Accommodation and Food Services 23,610 $10,099 Administrative and Waste Services 12,233 $19,152 Other Services (i.e. Barber Shop, Automotive) 10,649 $16,628 Finance and Insurance 10,219 $44,302 Construction 9,549 $34,316 Wholesale Trade 7,935 $36,565 Professional and Technical Services 6,670 $34,279 Transportation and Warehousing 6,447 $31,363 Educational Services 6,159 $28,529 Information 4,444 $34,898 Arts, Entertainment, and Recreation 3,454 $12,500 Real Estate and Rental and Leasing 2,674 $25,180 Management of Companies and Enterprises 1,280 $56,531 Utilities 1,240 $62,374 Mining, Quarrying, and Oil and Gas Extraction 1,079 $42,150 Agriculture, Forestry, Fishing & Hunting 907 $20,646

45 Part II Analysis of Economic Development Problems and Opportunities

Table 24: Largest Industries in the Northwest Region (Earnings Per Worker)

8-County Region Total Earnings Per Industry Employment Worker Utilities 1,240 $62,374 Management of Companies and Enterprises 1,280 $56,531 Finance and Insurance 10,219 $44,302 Manufacturing 56,255 $42,360 Mining, Quarrying, and Oil and Gas Extraction 1,079 $42,150 Wholesale Trade 7,935 $36,565 Information 4,444 $34,898 Construction 9,549 $34,316 Professional and Technical Services 6,670 $34,279 Transportation and Warehousing 6,447 $31,363 Health Care and Social Assistance 47,544 $31,248 Educational Services 6,159 $28,529 Real Estate and Rental and Leasing 2,674 $25,180 Agriculture, Forestry, Fishing & Hunting 907 $20,646 Retail Trade 38,366 $20,523 Administrative and Waste Services 12,233 $19,152 Other Services (i.e. Barber Shop, Automotive) 10,649 $16,628 Arts, Entertainment, and Recreation 3,454 $12,500 Accommodation and Food Services 23,610 $10,099

In viewing the Region as a whole, the top five industries with the greatest number of employees are: manufacturing, health care and social assistance, retail trade, accommodations and food service, followed by administrative and waste services. However, those industries with the greatest earnings per worker include: utilities, management of companies/enterprises, finance and insurance, manufacturing followed by mining, quarrying and oil/gas extraction.

An economic cluster can be defined as a vibrant center of interrelated industries that fosters wealth creation. In essence, an economic cluster is a group of companies linked by common markets, labor pools, similar technologies, supplier chains, or other economic ties. Clusters can take on strategic importance because activities that benefit one member typically generate positive effects for the other members. The past economic history of the Northwest Region has led to the substantial growth of more than 20 top or key industries. Today, these key industries serve as the “economic drivers” of the region and can provide the basis for defining a series of economic clusters around which future economic development opportunities can align.

46 Part II Analysis of Economic Development Problems and Opportunities

Table 25: Northwest Region Key Industries Average Hiring Monthly Average Quarterly Growth Earnings ($) Employment (2007 (%) (2006- (2007 Q1 - Group: NAICS 3-digit industry name Q1 – Q4) 2007) Q4) 1 621 Ambulatory Health Care Services 14,781 -28 $3,283 2 332 Fabricated Metal Product Manufact. 12,773 136 $3,039 623 Nursing and Residential Care 3 Facilities 12,004 1 $2,374 4 561 Administrative and Support Services 11,621 -125.00 $1,982 5 622 Hospitals 9,091 204 $4,555 6 333 Machinery Manufacturing 7,098 -18 $4,384 541 Professional, Scientific, and Technical 7 Services 7,012 -262 $2,882 326 Plastics and Rubber Products 8 Manufacturing 6,188 51 $2,477 9 238 Specialty Trade Contractors 5,996 126 $2,554 336 Transportation Equipment 10 Manufacturing 5,438 52 $5,333 11 611 Educational Services 5,431 -120 $3,655 12 331 Primary Metal Manufacturing 4,029 -110 $4,610 13 321 Wood Product Manufacturing 2,590 -7 $2,823 14 484 Truck Transportation 2,520 23 $2,823 15 311 Food Manufacturing 1,231 26 $1,956 327 Nonmetallic Mineral Product 16 Manufact. 1,035 67 $4,597 334 Computer and Electronic Product 17 Manufacturing 617 -92 $2,745 18 339 Miscellaneous Manufacturing 367 59 $2,193 324 Petroleum and Coal Products 19 Manufact. 325 32 $2,347 337 Furniture and Related Product 20 Manufacturing 235 -13 $2,653 237 Heavy and Civil Engineering 21 Construction 205 -106 $3,799 22 236 Construction of Buildings 135 -93 $2,440 23 211 Oil and Gas Extraction 126 -67 $2,033 Source: U.S. Census Bureau, Local Employment Dynamics Industries ranked on the greatest employment Private Firms Only

47 Part II Analysis of Economic Development Problems and Opportunities

D. Regional Competitiveness

Location quotient is a method for assessing the relative specialization of a geographic region relative to a selection of industries or economic clusters. The quotient represents a ratio of a particular industrial concentration in the geographic area compared to the same industry’s concentration at the national level. A location quotient value of 1 (or close to 1) indicates that the region produces enough goods or services in a particular industry or economic cluster to satisfy local demand. A quotient of less than 1 indicates that the region does not produce enough goods or services locally and therefore must import goods or services to satisfy local demand. A quotient whose value is greater than 1 indicates that the industry is an export industry and the region likely has some competitive advantage relative to that industry or industry cluster.

In addition, location quotients can be analyzed over a period of time. Tracking the change of an industry’s quotient within a region allows for economists to determine whether that particular industry’s economic strength is increasing or shrinking. A positive change in location quotient indicates that the region is growing its competitive advantage relative to a particular industry, increasing market share or exports, and growing value-added employment and jobs. A negative change in a region’s location quotient for a particular industry signifies the industry’s decreasing economic strength. Most importantly, a negative quotient serves as a possible indicator to economic decline or contraction in that particular industry.

Industry clusters can be characterized as: “current strongholds,” “emerging industries,” or “transitional industries.”

The industries or economic clusters that rank as Current Strongholds in the Northwest Region include:

1. Primary metal manufacturing 2. Machinery Manufacturing 3. Fabricated Metal Product Manufacturing

48 Part II Analysis of Economic Development Problems and Opportunities

4. Oil and Gas Extraction 5. Plastics and Rubber Products Manufacturing 6. Nursing and Residential Care Facilities 7. Ambulatory Health Care Services 8. Truck Transportation

Emerging Industries in the Northwest Region include:

1. Food Manufacturing 2. Heavy and Civil Engineering Construction 3. Specialty Trade Contractors

Transitional Industries in the Northwest Region include:

1. Wood Product Manufacturing 2. Nonmetallic Mineral Product Manufacturing 3. Hospitals 4. Miscellaneous Manufacturing

Individual county concentrations may show a different picture of economic clusters and location quotients; however, economies do not align with arbitrary government boundaries. In fact, they reflect the fluid movement of goods, people, and ideas. Competitive advantage is created and sustained through highly localized processes. Differences in national and regional economic structures, values, cultures, institutions, and histories contribute to competitive success. However, the globalization of the economy makes a region and its attributes and strategies even more important. With fewer impediments to trade sheltering uncompetitive domestic firms and industries, the home region takes on greater importance because it is the source of the skills, knowledge, technology, resources, and assets that are the cornerstone of its competitive advantage.

49 Part III Goals and Objectives

III. Goals and Objectives

A. Vision Statement Building upon the evaluation of the region’s existing strengths, weaknesses, opportunities and threats as well as its potential economic growth areas, the Northwest Region’s CEDS Committee developed a vision statement reflecting on the CEDS project. The vision statement, as follows, serves as the underlying guide for implementation of the region’s future economic development strategies.

B. Strategic Goals The above vision statement is subsequently realized through the implementation or achievement of a series of goals. Goals represent the general desired outcomes in order to fulfill the vision statement. They provide direction and focus on the “ends” rather than the means. The CEDS goals include:

1. Build future economic development utilizing the strengths of the region’s existing industries and businesses

2. Leverage emerging industries relative to the region’s predominant economic sectors

4. Promote the region’s heritage, natural resources, cultural values, educational assets and quality of life

5. Develop cooperative relationships, outreach and recruitment which promote the expansion of regional and local work force opportunities

6. Strengthen the specialized industry training programs for product development and fabrication

7. Promote land use planning and policies which balance economic development opportunities with the conservation of sensitive natural resources

8. Partner with regional education providers, local governments and the business community to forge a positive perception of the Region’s industries and career opportunities

50 Part III Goals and Objectives

10. Elevate the Region’s quality of life through the provision of affordable, equitable, and accessible human and health services throughout the Region

C. Regional Objectives From the overall Regional Goals to strengthen economic development opportunities in the Northwest Region, a series of Objectives also emerge. These Objectives have, in part, been defined by other related land use, transportation and strategic planning efforts in the region. Identified objectives include:

1. Manufacturing • Develop infrastructure for manufacturing growth and expansion • Create shovel ready industrial parks • Encourage the development of fast growth and high tech industries that are manufacturing related • Continue the business calling program to existing businesses • Identify and develop the concept of core industry clusters such as plastics, metal fabrication, machining, wood products, biotechnology, etc. • Encourage adaptive reuse and modernization of vacated industrial facilities for new industry • Develop high technology incubators • Demolish unusable industrial buildings and facilities • Construct shell buildings for use by businesses • Cleanup contaminated and brownfield sites for industrial reuse

2. Business Financing • Deliver low interest loans to businesses to retain and create jobs • Provide business loan packaging assistance to businesses • Develop a venture capital pool • Established a network of “angel” investors or capital funders • Conduct training programs and workshops regarding availability of alternative sources of capital • Encourage banks to participate and businesses to utilize existing loan programs

51 Part III Goals and Objectives

3. Government Procurement • Provide businesses with the technical assistance to bid on government contracts • Assist in Historically Underutilized Business (HUB) Zone certification • Conduct procurement workshops and trade show events • Advertise the Program and its services to increase the awareness

4. International Marketing Program • Provide technical assistance to businesses in the region • Raise the awareness of the benefits of exporting • Provide educational sessions in conjunction with the lead county economic development agencies • Provide trained staff to service area clients • Develop a regional strategy that is consistent with the state and federal programs • Develop export finance projects in concert with the Small Business First Fund • Organize inbound and outbound missions for regional industry sectors

5. Tourism • Expand the strategic regional plan for the future of tourism development • Develop tourism projects and infrastructure required for these projects throughout the Region • Identify and secure funding for tourism development projects • Create a regional marketing strategy for tourism • Establish a regional way-finding and signage program for tourism • Preserve and enhance the region’s character and quality of life through regional greenway planning efforts including:

6. Business Creation/Entrepreneurship • Identify entrepreneurship needs and gaps • Create an entrepreneurship resources and support network • Target low income residents for entrepreneurial training and enhancement centers • Optimize opportunities for Community Development Block Grants (CDBG) and Microenterprise loans • Facilitate e-business training for entrepreneurs • Recruit and train young entrepreneurs • Support existing Junior Achievement programs and other young professional networks including entrepreneurial educations programs and clubs in schools • Provide entrepreneurial education experience for grades kindergarten through grade twelve • Promote advanced manufacturing, clean technology/green technology, information technology and life sciences opportunities within designated Keystone Innovation Zones (KIZ):

52 Part III Goals and Objectives

7. Keystone Opportunity Zones (KOZ) • Provide the infrastructure, which is required to fully develop the Northwest KOZ • Market the Northwest KOZ • Support capital investment financing for businesses located in the KOZ • Market technical assistance and ensure availablity to businesses and firms locating in the KOZ

8. Workforce Development • Identify priority business/employer workforce development needs • Evaluate the current state of workforce development • Evaluate and analyze the current workforce • Improve the availability and quality of workforce development training and education • Improve training and support systems to develop basic technical/academic skills • Match students with jobs • Establish technology oriented training centers, distance learning projects and other regional technical training programs and centers

9. Business Retention • Continue to formalize the business retention program at the local and regional levels • Market the business retention program system and resources • Analyze and fill service gaps for individual business clients • Foster continuing support for a public sector support network of elected officials for business retention • Maintain a forum to analyze and discuss unmet needs and take action • Execute Corporate Parent Visits • Maintain networking opportunities • Create an evaluation/recognition process for outstanding companies in Northwest Pennsylvania

10. Marketing • Partner with the region’s Industrial Development Corporations (IDCs) to set marketing priorities for the region to produce and promote a better pro-business environment throughout the region • Encourage input from the region’s key community and business leaders on what marketing priorities should be in support of the region’s business communities • Develop marketing materials for the entire region’s use using the most up-to- date data • Collect needs/gaps assessment information

53 Part III Goals and Objectives

• Evaluate the region’s market position of industry sectors and clusters compared to national/global markets • Identify opportunities for new/potential/existing businesses • Recognize businesses that are uniquely successful in the Region • Create marketing materials which are available online for site selector usage • Enhance domestic marketing services to entrepreneurial businesses in the region

11. Data Intelligence/Analysis Gathering • Establish a global and national data mining process • Conduct external market research • Perform an industry level analysis down to company level business analysis • Identify new and emerging economic development, technology, and business opportunities • Maintain a regional electronic library which includes economic development, local economic development and planning studies • Collect and report data on regional outcomes and measures of success • Analyze and disseminate data throughout the region

12. Fiber Optics Infrastructure • Educate businesses, health care providers, universities, schools, local governments, non-profit agencies, local elected officials, and others on specific broadband applications, and the infrastructure and equipment needed to support those applications • Work with telecommunication service providers (i.e. telephone, cable, wireless, Internet, and satellite providers) to provide advanced services that are needed for business development and growth (i.e. Digital Subscriber Line (DSL), T1, T3, etc.)

13. Other Infrastructure • Network with infrastructure providers-utilities, authorities etc. • Provide technical assistance for the development of capacity and adequate functioning of infrastructure needed to support economic development • Track Act 130 implementation and create regional progress reports on infrastructure development • Provide technical support for implementation of capital improvements for water and sewer infrastructure and help to procure necessary funding • Provide infrastructure to and within new industrial parks in the region • Upgrade deteriorated water and sewer infrastructure and if necessary replace with new facilities • Upgrade and expand water and sewer infrastructure to provide for economic development growth areas

54 Part III Goals and Objectives

14. Municipal Technology Support • Provide technical and financial assistance in obtaining computer hardware, software, and accessories • Educate local governments in the value of technology and specific software programs such as word processing, spreadsheets, and accounting packages • Provide technical one-on-one and telephone assistance for basic technology problems that local governments face • Provide technical and/or financial assistance in obtaining Internet connection, electronic mail access and broadband aggregation • Offer technical assistance in using Geographic Information Systems (GIS) for land use planning, infrastructure, homeland security, etc.

15. Transportation • Improve regional connectivity to the interstate system • Establish and prioritize candidate transportation projects for development and growth areas identified in county comprehensive plans • Preserve corridors along existing rail corridors • Coordinate program and project development with tourism-related initiatives • Improve directional and wayfinding signage • Reduce the rates of transportation-related fatalities and injuries • Improve design practices to more safely accommodate persons with disabilities • Expand the use of effective access management practices • Encourage the use of traffic calming in residential and downtown areas, where warranted • Ensure that procedures are in place that result in reliable information-sharing among all affected governmental agencies • Improve planning and communications with respect to transportation response to disasters and emergencies • Define a priority core multimodal transportation system (passenger and freight) for the region as the foundation for future planning and programming • Improve the coordination and efficiency of transit and paratransit systems • Identify capital improvements that enhance bicycling and walking mobility • Improve and maintain the region’s rail assets in support of economic development and freight mobility • Promote the designation and interconnectivity of shared rail-trail corridors • Maintain the viability of the region’s airports • Improve the efficiency of the region’s transportation system • Implement transportation improvements that enhance or maintain surrounding aesthetic value • Strengthen the intermodal links between bicycle and pedestrian facilities, public transportation, and motorized recreation

55 Part III Goals and Objectives

• Expand bulk commercial freight transfer capabilities for rail-truck movements to serve area shippers/receivers and to attract intermodal transfer facility development for the region • Leverage innovations in technology and procurement for improved traffic management, congestion reduction, and safety enhancement • Encourage multi-municipal collaboration and resource-sharing • Give priority to addressing the region’s substandard bridges and roadways • Support projects that bring non-highway infrastructure to an acceptable condition • Reactivate rail corridors

16. Regional Cooperation • Encourage and facilitate collaboration on regional projects • Offer leadership and governance training for elected officials • Create programs that professional economic development training to the region • Provide technical resources to procure federal and state development resources • Offer grant research and grant writing services • Establish regional priority projects and provide legislative support for those projects • Facilitate and Encourage a multi-municipal agility and resource sharing program

17. Community Development • Adhere to the Commonwealth of Pennsylvania Keystone Principles for growth, investment, and resource conservation • Identify and obtain sources of funding to assist in restoring deteriorated and underutilized downtown areas • Assist rural areas in obtaining grants for community projects • Encourage the consolidation of government services and municipalities • Promote modern and more uniform land use and development regulations • Create a positive internal attitude via newspapers and media regarding community development and revitalization of downtown areas • Develop proactive community, county, and regional planning programs • Invest in local communities by utilizing Community Redevelopment Associations (CRA) • Collaborate with County and local leaders promote improvement in blighted areas and in identified neighborhoods

56 Part IV Community and Private Sector Participation

IV. Community and Private Sector Participation An extensive amount of data was gathered for input to the CEDS. This data included regional plans such as current Long-Range Land Use and Transportation Plan documents; demographic and economic development information for the region was gathered from a variety of state-wide and federal sources. From the collection of current regional data, forecasts of future economic and demographic conditions and trends were calculated.

The Northwest Region CEDS Committee acknowledges and thanks its Board and each of the Counties’ Boards of Commissioners and respective County Planning Offices for their support and participation in this effort. The participation of the private sector as part of this effort has also enabled the Northwest Commission to recognize both the complexity of the efforts ahead, but most importantly, the enthusiasm and willingness the private sector has to cooperate with regional entities to transform these planning efforts into “bricks and mortar” realizations.

57 Part V Strategic Projects, Programs and Activities

V. Strategic Projects, Programs and Activities

A. Overview Based upon the identified vision statement, goals and objectives, the CEDS Committee has developed a list of activities or projects generally accepted as being related to economic development. These items, together with the EDA criteria and the Keystone Principles for Growth, Investment and Resource Conservation as defined by the Governor’s Interagency Land Use Team form the basis of the Northwest Region’s economic planning efforts and include:

1. Strategizing and pursuing opportunities related to job expansion and retention. 2. Enhancing central business districts. 3. Encouraging growth in smaller business markets related to larger industries. 4. Expanding industrial/manufacturing opportunities. 5. Improving infrastructure by constructing and repairing roads, water and sewer systems. 6. Supporting entrepreneurial activities. 7. Promoting the region’s technology “readiness” through expansion of telecommunications, high-speed Internet access infrastructure. 8. Strengthening continuity between the region’s natural resource-based tourism opportunities.

Future growth of the Northwest Region and its economy will hinge on the region’s ability to create a unique place that is attractive to businesses but is also a place where businesses will want to stay. This means that the Northwest Region must become a place where businesses thrive and expand. To accomplish this, the Region as a whole and each county must be purpose-driven in the projects that they decide to implement. Each county must also pursue regional opportunities to be more efficient and effective. The sections to follow, County Identified Projects as well as Regional Initiatives, expand on these ideas in detail.

B. Long-Term Economic Development Initiatives Economic development projects are long-term endeavors; it can be years from project formation to implementation. Studies, consensus building and logistical details are required before the idea can be vetted. Funding sources must be identified and, sometimes, matching funds acquired as part of pursuing public or private monies, including grant applications. Besides funding, investments of time are a significant commitment in pursuing any economic development initiative – especially those with long-term opportunity and growth potential.

58 Part V Strategic Projects, Programs and Activities

1. County Identified Projects The CEDS Committee has outlined a series of projects for each county within the Northwest Region. Projects address issues and opportunities in the following general categories: These projects represent initiatives that should be taken on in the next 5 to 7 years. The projects listed vary in their status of completion or implementation; in some cases, projects are currently underway while others are simply an emerging idea. Some projects will require further discussion in order to strategize potential funding avenues. (See also Part VI). The projects listed on the following pages are presented based upon individual County considerations and input and, subsequently, have not yet been ranked or prioritized based upon a hierarchal order or readiness. In the next section of this report, a series of emerging regional themes identify ways in which some of these individual opportunities could be elevated to broader-scale cooperation. It is recognized that the projects’ fruition and pace will largely be determined based on funding, available stimulus package dollars and/or other opportunities. Many projects focus on the following themes.

• Business park/industrial park • Business expansions/ improvements expansions • Downtown revitalization projects • Cultural assets (such as museums, • Streetscape improvements libraries, visitor centers, etc…) • Road, rail and bridge Improvements • Sewer/potable water expansion/rehabilitation projects • Airport expansion/upgrade • Utility construction/expansion • Hotel construction/renovation • Telecommunication infrastructure • Medical facility expansion/upgrade construction/expansion/renovation • Job/career/labor training programs • Employee Recruitment • Trail and/or recreational facility • Business Recruitment projects

The individual county projects are as follows. Clarion County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Continue development of Clarion County Commerce Center multi-use park 2. Complete engineering and architectural design of a 40,000 square foot multi- tenant building 3. Continue efforts to complete the Beaver Creek Environment/Recreation project. A regional project, which would provide recreation, aquatic, wildlife, avian,

59 Part V Strategic Projects, Programs and Activities

ecological and environmental education endeavors, and would also provide an alternative water supply source. 4. Continue efforts to develop a biotechnology business development center at Trinity Point 5. Clarion County Airport project is an upgrade of equipment, installation of a precision instrument approach and acquire and upgrade existing snow removal equipment. County is looking to extend public water and sewer to airport. 6. Development of infrastructure within trail towns to support year round economic development opportunities associated with outdoor recreation activities 7. Create an economic development revolving infrastructure loan fund, which would provide loans to existing businesses/new businesses with infrastructure needs 8. The counties of Clarion and Forest are partnering to facilitate the construction of a fiber sonnet ring extending telecommunications service capabilities to the communities and businesses situated in their communities. This fiber-based infrastructure will allow companies to access the service offerings of a to-be- determined provider. 9. Improvements to Foxburg water ($1.3 million), sewer ($2.2 million), and stormwater ($780,000) systems 10. Improvements to Rimersburg Borough water and sewage systems 11. Proposed sanitary sewer system for Toby Township 12. Improvements to East Brady Borough water system 13. Extension of public water to county park and extension of water and sewer to exit 62 14. Encourage advancement of corridors and links within the region’s land-based trail system: Knox to Kane Rail Trail, Allegheny River Trail, Redbank Creek Rail Trail, North Country National Scenic Trail 15. Extend Water Trail opportunities: Lower Allegheny River Water Trail, Red Bank Creek Water Trail 16. Develop and implement a trail town philosophy in identified communities: Foxburg, New Bethlehem and Clarion 17. Designate Natural Systems Greenway Corridors: Allegheny River Greenway Corridor, Clarion River Greenway Corridor and Hemlock Creek Greenway Corridor

Crawford County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Complete design and construction of water project at Keystone Regional Industrial Park 2. Complete build-out of Crawford Woodlands (industrial park) 3. Rehabilitation and subdivision of Linesville Business Park

60 Part V Strategic Projects, Programs and Activities

4. Recruit industrial occupants for Linesville Business Park, Crawford Business Park and Keystone Regional Industrial Park 5. Complete infrastructure for Terrance Drive Industrial park 6. Complete Phase I of Crawford Business Park – East 7. Extension of Rural Electric power service at the Keystone regional Industrial Park 8. Complete the Rail and Tool Museum 9. Complete Vernon Township French Creek trail system 10. Initial and complete the East Branch Trail in Crawford County 11. Complete the Ernst Trail from City of Meadville to Conneaut Lake Borough 12. Initiate and complete the Seebee Trail in Linesville and Pymatuning Lake Region 13. Continue to fund and implement initiatives and programs for the Pennsylvania Route 6 Tourism efforts 14. Construction of master rail siding at Keystone Regional Industrial Park 15. Completion of Mead Avenue bridge replacement project 16. Fund and complete a dedicated highway access to the Port Meadville Airport from SR 98 17. Fund and complete the SR 198 Corridor Improvement Projects in Saegertown Borough, SR 86 & SR 198 and the turning radius improvement in Blooming Valley Borough at SR 77 & SR 198 18. Fund and complete the "North Street Connector Projects" in the City of Meadville 19. Fund and complete the transition of the Peters Road Bridge in Woodcock Township into an at-grade crossing 20. Expand capital resources available to support growth of targeted businesses 21. Develop and implement Business Service Center as small business incubator 22. Encourage advancement of corridors and links within the region’s land-based trail system: The East Branch Trail, The Titusville Queen City Trail and The Spillway Trail 23. Extend Water Trail opportunities: French Creek Water Trail and Shenango River Water Trail 24. Develop and implement a trail town philosophy in identified communities: Titusville and Conneaut Lake 25. Designate Natural Systems Greenway Corridors: French Creek Greenway Corridor, Conneaut Lake / Conneaut Outlet Greenway Corridor, Muddy Creek Greenway Corridor and Pymatuning Reservoir Greenway Corridor

Erie County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Acquisition, redevelopment of Kaiser Property (East 12th Street) for industrial use

61 Part V Strategic Projects, Programs and Activities

2. Extension of East 26th Street to allow for development of 15 acres of KOZ property in Erie Industrial Park (addition of road, water, sewer facilities ) 3. Redevelopment of former GAF property to allow for compatible bayfront recreational/tourism related activities 4. Development of the Union City Dam 5. Acquisition and development of up to 1000 acres of land along I-90 corridor between New York and Ohio borders for industrial and/or warehouse distribution center 6. Build out and development of Knowledge Park (Phase III) 7. Acquisition and redevelopment of Gunite Property in the City of Erie 8. Redevelopment of the Koehler Brewery property and subsequent Phase II neighborhood revitalization plan 9. Build out of Cohen Industrial Park 10. Build out of Bayfront Convention Center and adjoining 200 room hotel facility 11. Development of Erie Bluff State Park with 4-season lodging options 12. Development of John Britton’s Presque Isle Bay Waterpark 13. Redevelopment of East Dobbins Landing into a multi-purpose office, retail, commercial and parking complex 14. Implementation of air bridge between Cottbus-Drewitz and EIA-TRF 15. Acquisition of high speed ferry and commencement of operations with Dover, Ontario 16. Build-out of cross Lake Erie Truck Ferry Terminal for roll on roll off between Erie and Nanticoke, Ont and associated Rail Transfer Facility 17. Rehabilitation of existing dock facilities at various locations 18. Parade Street Boulevard & Lighting Extension south of East 12th St. / ERA 19. Erie Downtown & Mid-Town Upper Floor Residential Rehabilitation / Conversion Program. ERA 20. Acquire & Construct approx. 40,000 s.f. Downtown grocery market and additional retail. 21. Develop the Erie Start-up Incubator project. 22. Encourage advancement of corridors and links within the region’s land-based trail system: Corry Junction Greenway Trail and The Thornton Junction Trail 23. Extend Water Trail opportunities: French Creek Water Trail 24. Develop and implement a trail town philosophy in identified communities: City of Corry and Erie Bayfront 25. Designate Natural Systems Greenway Corridors: French Creek Greenway, Walnut Creek Greenway and Conneaut Creek Greenway

Forest County 1. Jenks Township Sewer Project 2. Encourage advancement of corridors and links within the region’s land-based trail system: Knox Kane Trail 3. Extend Water Trail opportunities: Tionesta Creek

62 Part V Strategic Projects, Programs and Activities

4. Develop and implement a trail town philosophy in identified communities: Cooksburg, Marienville and Tionesta 5. Designate Natural Systems Greenway Corridors within public lands as opportunities arise

Lawrence County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Ellwood City Borough - Public Works Infrastructure 2. Ellwood City Borough - Repair and Replace Sanitary Sewers 3. Mahoning Township - Sewers 4. Neshannock Township - Millennium Park Sewer Project 5. New Castle Sanitation Authority - Construction of holding basins 6. Shenango Township - Storm water Projects 7. Union Township Storm Sewer Project 8. Volant Borough - Upgrade Volant's Water Treatment Facility 9. Wayne Township Municipal Authority - Expansion of Sanitary Sewer Lines 10. Ellwood City Borough - Roof Mounted Solar Panels and Turbines 11. New Wilmington Water Authority - Solar Mixing System 12. Ellwood Borough - Acquisition, construction, infrastructure and other related costs for the Ellwood Borough East Commerce Park 13. Ellwood City Rail Corridor - industrial redevelopment 14. Multi-Municipalities - Acquisition, site development and infrastructure improvements related to the railroad corridor development 15. Multi-Municipalities - Construction, acquisition, infrastructure, redevelopment and other costs related to the Central Lawrence County Route 422 Corridor Development Area 16. Multi-Municipalities - Construction, acquisition, infrastructure, redevelopment and other costs related to the Lawrence County South Central Route 18 Development District 17. Neshannock Township - Millennium Park Phase II, site acquisition, preparation and construction of a business park, construction of multi-tenant facility and installation of highway interchange and other applicable infrastructure 18. New Beaver Township - Property acquisition, site development, construction and infrastructure improvements for the New Beaver Commerce Park 19. New Castle - Acquisition, site development, infrastructure and construction to redevelop Southside New Castle 20. New Castle - Riverview Commerce Park Phase II, site acquisition, planning and development for the expansion of a business park 21. New Castle - Site development, infrastructure and expansion costs for the Business First Center to include business incubator space 22. New Wilmington - Acquisition, construction, infrastructure and other costs related to the rehabilitation of downtown area

63 Part V Strategic Projects, Programs and Activities

23. North Beaver - Werner Property acquisition, site development, installation of infrastructure and roadway 24. Shenango Township - Acquisition, demolition, infrastructure improvements, construction and other costs related to the Big Run Commerce Park project 25. Taylor Township Rail Corridor South - Brownfield reclamation and redevelopment including former Remacor Site 26. Wampum - Construction, infrastructure and other costs related to Wampum Borough downtown improvements and revitalization 27. Ellwood City Borough - Renovations and repairs of Municipal building and public works building 28. Ellwood City School District - Renovations to School Building 29. Lawrence County - Courthouse Plaza 30. Lawrence County - Renovations and Additions to Government Center 31. Mahoning Township- New Municipal Building 32. Mohawk Area School District - Renovations to School Building 33. New Castle Area School District - School Building Renovations 34. New Castle City - Equipment Building 35. Pulaski Township - New Municipal Building 36. Shenango Area School District - Renovations to School Building 37. Union Area School District renovation and expansion of school district facility 38. Union Township - New Police Department Building 39. Volant Borough Building acquisition, renovations and streetscape improvements, including parking facilities 40. Wampum Borough - New Fire Department Building 41. Wilmington Borough - Renovation of Westminster College Library 42. Ellwood City Borough - Swimming pool & park renovations 43. Lawrence County - Stavich Bike Trail upgrades and repairs 44. Lawrence County - Route 60/422 Interchange in Union Township 45. Lawrence County - Neshannock Trail Conversion of a rail right-of-way from New Castle to Volant 46. Lawrence County - Upgrading roads, bridges and drainage issues 47. Lawrence County Municipal Airport - Rehabilitate and Repair Runway 48. Union Township - Traffic improvements at Lawrence Crossings from Route 224 49. Ellwood City Borough - Installation of LED Street Lights and traffic Signals 50. New Castle City - Parking Garage Repairs 51. Shenango Township -- Construction, rehabilitation and expansion of the Shenango Community Park 52. Ellwood City Hospital expansion, construction and related costs 53. New Castle City - Jameson Health System, renovation and expansion of emergency services department and surgical suites 54. New Castle City - Acquisition, infrastructure improvements and construction for the New Castle downtown revitalization project

64 Part V Strategic Projects, Programs and Activities

55. Encourage advancement of greenway-related projects: Neshannock Rail Trail, North Country National Scenic Trail, Shenango River Water Trail, New Wilmington Borough, City of New Castle, Shenango River Greenway, Neshannock Creek Greenway and Slippery Rock Creek Greenway.

Mercer County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Strategy 1000 Sites Development Initiative-Initiative to develop 1000+ acres of new industrial/business park properties in the interstate corridors 2. Redevelopment of the Trinity Industries South Industrial Plant, Greenville. Project in early conceptual stages. Property presently owned by Trinity Industries, Dallas TX 3. Sewer and water upgrades and new infrastructure development throughout the County 4. Trinity North/Greenville - Redevelopment of a 35-acre brownfield to mixed use commercial and residential, Borough of Greenville. Environmental assessments in process 5. Westinghouse/Business Incubator - Redevelopment of former Westinghouse office complex, City of Sharon, into a multi-tenant high tech incubator 6. Exit 15-I-80 Industrial/Business Park - Redevelopment of a 218-acre brownfield, including extension of utilities, into a mixed use business and industrial park. Property acquired 12/2007 7. Expansion Reynolds East Business Park - Extension of utilities, water, sewer, electric, to open up new development sites 8. Redevelopment Broadway North Industrial Park/City of Sharon - Funds needed for additional site work and infrastructure to effectively prepare property for sale and development 9. Develop New Multi-tenant Facility - Reynolds East Business Park- Planning/Design in process 10. Extension of utilities and construction of a 400,000 SF Industrial/manufacturing facility to retain and create 400 jobs. Site evaluations in process. 11. Encourage advancement of corridors and links within the region’s overall greenway efforts: Shenango River Trail, Shenango River Water Trail, Greenville Borough (Trail Town), City of Sharon (Trail Town), Shenango River Greenway and Neshannock Creek Greenway 12. Enhance the economic competitiveness of the region and benefit the emerging workforce - Technology Center of Excellence Initiative at the LindenPointe Technical Park, which includes an incubator component and a LEED/Green Learning Laboratory

65 Part V Strategic Projects, Programs and Activities

Venango County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Reconstruction of Colbert Ave. in Oil City from Graff St. to the Oil City Industrial Park approx. 5,950 ft. 2. Reconstruction of Route 38/208 - Emlenton Hill. 3. Oil City Industrial Park Expansion – 50,000 sq. ft spec. building 4. The Sandycreek IP roads, water and sewer needs 5. The extension of the main runway 3-21 at Venango Regional Airport is needed. Extending the runway 900 ft from 5,200 to 6,100 thus allowing regional jet aircraft to use the facility 6. Cornplanter Township Rt. 8 corridor water line replacements and the placement of sewer lines along the corridor and adjacent housing developments 7. Barkeyville Borough Route 8 Corridor – Smart Transportation project Venango County. 8. County wide build out of fiber optics 9. City of Franklin - Franklin Heights Water Tank & Pump Station to increase fire flow to Sperian, the County FTZ/KOZ site, and the entire Heights area 10. City of Franklin traffic signal upgrades and replacements 11. City of Franklin Wastewater Treatment plant repair damage to the tank from the 2006 flood & septage station repairs 12. Sandycreek Township – Morrison Run water line extension. Extending public water to Morrison Run residents. Line can be then later extended to the far end of the Industrial Park 13. KOZ/FTZ spec. buildings on VC Regional Airport property preparation for “shovel ready” development and construction of three industrial buildings with 215 adjacent parking spaces 14. City of Franklin – Plummer Avenue road rehabilitation. Retaining wall was damaged in 2007, the road was therefore closed 15. City of Oil City – upgrade of sewer lines and pump stations throughout the city 16. City of Oil City – upgrades to the water lines throughout the city 17. Rouseville Borough – upgrades to the approx. 3,000 ft of water line to feed the Industrial Park and extend to the Rouseville Borough Sewer facility 18. Venango County Regional Airport ARFF Building – Airport Rescue/Fire Fighting Building. Construct a building to properly maintain ARFF equipment and house a training facility 19. Venango County Regional Airport Sand Storage & Equipment building 20. Venango County Regional Airport construction of a multi-tenant hanger 21. Oil Creek Township and Pleasantville Borough – laying sewer lines in Oil Creek Township going to the Pleasantville Borough sewer facility. Upgrade of the Pleasantville Borough sewer facility 22. Pleasantville Borough - Construct a 250,000 gal. water tank to replace the dilapidated 40,000 gallon tank

66 Part V Strategic Projects, Programs and Activities

23. Polk Borough sewer line improvements to remedy I&I issues flowing into Frenchcreek Township sewer facility 24. Rouseville Borough upgrade of the Rouseville Borough sewer facility. Connecting industrial park property to the facility 25. Sugarcreek Borough upgrade of the sewer facility 26. Emlenton Borough – repair replacement of fire hydrants 27. Emlenton Borough – upgrade of the sewer lines and facility 28. Cherrytree Township – Act 537 has been completed. Construct a sewer collection system to convey sanitary to Titusville WWTP 29. Barkeyville Borough water distribution system – rehabbing of the Borough water lines 30. Barkeyville Borough –connect residents into Barkeyville Sewer LLC facility, current customers are the commercial and industrial landowners 31. Clintonville Borough – updating the water system 32. Encourage advancement of corridors and links within the region’s land-based trail system: portions of the Erie to Pittsburgh Greenway, McClintock Trail, the Rynd Farm to Petroleum Centre portion of Oil Creek State Park Trail 33. Extend Water Trail opportunities: French Creek Water Trail and Oil Creek Water Trail. 34. Develop and implement a trail town philosophy in identified communities: Oil City, City of Franklin and Emlenton Borough 35. Designate Natural Systems Greenway Corridors: Sandy Creek Greenway Corridor, Allegheny River Greenway Corridor and French Creek Greenway Corridor 36. Polk Borough-repaving and reconstruction of Erie St. to include additional storm drains and curbing.

Warren County These projects have not yet been ranked or prioritized based upon a hierarchal order or readiness.

1. Development of Brokenstraw Creek Industrial Park - required demolition of existing school structure and construction of access roadways. Looking for demolition 2nd quarter 09 2. Hunting & Fishing Heritage/Conservation Center - developing partnership between Hunting & Fishing Center and Warren County Conservation District to develop Center at Conservation District land - 1st Qt 09 3. Geo-Thermal heating and cooling municipal system being assessed for extension into the City of Warren and a second system serving south side of City 4. Fiber-network build-out: Existing infrastructure has been evaluated, RFQ for missing infrastructure construction being developed with connection potential to neighboring counties. RFQ completion date May 2009.

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5. Seeking right-of-ways to extend North Warren Bike/Hike trail to the New York line. Construction costs for extension not available 6. Kinzua Beach redevelopment - developing partnership with ANF management team to develop plan for expanded services at Kinzua Beach, including potential for lodging accommodations. Estimated cost for repair of sewage treatment facility. 7. Blair, LLC is developing plan to expand distribution services at Irvine facility. New employment - 180 full time positions 8. City of Warren streetscape project Phase I going to formal construction bid Jan. 09. Construction scheduled to begin May 09. 9. Warren Hotel/Convention Center (Comfort Suites Hotel) scheduled for ground breaking March 2009, grand opening March 2010. 10. City of Warren Municipal Sewage Treatment Facility upgrade and expansion. 11. Sheffield Township Municipal Sewage Treatment Facility upgrade and expansion. 12. Northwest PA Business Telecomm Build. Multi-county project that will include Northcentral Regional Commission counties. 13. Warren County Downtown Program. Core downtown areas of Youngsville Borough, Tidioute Borough, Sugar Grove Borough, and Sheffield Village. 14. Route 62 Improvements. Safety improvements to Route 62 from the City of Warren to the New York State Line. 15. Pine Grove Center expansion. The addition of long term health care facilities and nurses training/education. 16. Tidioute Medical Clinic. Healthcare facility to be located in the Borough of Tidioute that will include medical and dental offices and a pharmacy. 17. Warren General Hospital Regional Cancer Center expansion. Project to include additional treatment rooms and Oncologist office space. 18. St. Clair Professional Building expansion. Additional physician offices. 19. Encourage advancement of corridors and links within the region’s land-based trail system: Warren / North Warren Trail and Warren to Youngsville Trail 20. Extend Water Trail opportunities: Conewango Creek Water Trail and Allegheny Reservoir Water Trail: 21. Develop and implement a trail town philosophy in identified communities: Tidioute, Warren, Youngsville 22. Designate Natural Systems Greenway Corridors: Conewango Creek Greenway Corridor, Brokenstaw Creek Greenway Corridor, Tionesta Creek Greenway Corridor and Allegheny River / Reservoir Greenway Corridor

2. Regional Opportunities The Northwest Commission provides a forum for the counties of Northwest Pennsylvania with opportunity to come together to enhance economics and quality of life enhancements for businesses and residents. Building momentum through a common voice, the region’s potential to effectively pursue and succeed in growth is heightened. Cooperation between the Northwest Commission and County

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Commissioner offices should be the first line of communication as these efforts are pursued. Through cooperation, implemented projects such as the following example, benefit localities, Counties and the region as a whole.

Regional Project Implementation Example:

Pursuing regional-scale fiber optics installation/expansion

A number of the Counties have recognized the potential benefits to both the public and private sectors if the installation and expansion of fiber optics were able to occur on a region-wide level. To realize these types of infrastructure improvements, a number of steps should be pursued to cost-effectively determine the extent and phasing of these improvements.

• Identify current and proposed service areas inclusive of developing an estimate of probable development costs

• Assist state and federal lawmakers in creating legislation that will allow a more robust telecommunications environment especially in rural Northwest Pennsylvania

• Aggregate broadband demand for telecommunications service providers for rural communities that are perceived to be economically unable to attract advanced services on their own

• Identify and discover solutions to local community barriers to rapid broadband deployment

• Disseminate broadband application and service provider information through various forms of media and local/regional publications

• Perform as a centralized center for broadband deployment information (DSL, cable, modem, etc.), fiber optic maps, and project locations

• Encourage partnerships to obtain affordable middle and last mile broadband solutions

The Northwest Commission and the individual County and local governments as well as the private sector have the opportunity to pursue other cooperative efforts as part of any of the following six themes. These themes emerged from review and consideration of all of the County-specific projects. These themes allow the Counties within the region to consider how projects could be grouped into a series of collaborative efforts based upon similarities or commonalities.

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Infrastructure additions and improvements Infrastructure is not limited to political boundaries. In terms of sewer and potable water facilities, gravity and topography are major factors in considering facility placement and thusly collaboration among multiple municipalities and/or between multiple counties can be paramount. Whether for sewer, water or telecommunications, it is strongly encouraged that the Northwest Commission continues to promote partnerships among these multi-faceted groups and be a conduit in facilitating discussions between these groups and potential funding avenues such as PennVEST.

Transportation enhancements The Northwest Region’s economy is shaped by cooperation where smaller industries serve larger industries. For instance, a cabinet making business may provide products to a pre-manufactured housing business. Goods and services are often provided between counties as opposed to an economy where goods and services are transported in from other regions presenting a need to enhance transportation on a regional level. A large portion of the County-specific projects are related to transportation. Through a strengthened regional approach to traffic- shed planning, individual communities and/or Counties are encouraged to work with the Northwest Commission to collectively approach agencies, such as PennDOT, about related transportation project concepts. Related individual ideas could be prioritized at a regional scale in context of overall land use, transportation and economic development initiatives in order to enhance the opportunities for success in achieving both approaching and securing potential funding for individual, but related, transportation projects.

Land and building acquisition The communities and Counties of Northwest Pennsylvania have the opportunity to work collectively to realize a range of cost savings in evaluating and planning for future land and building acquisition. As an example, when market studies or feasibility studies need completed, entities cooperating through a regional approach can examine ideas at a greater scale which can promote efficiency in both individual successes, consulting (soft) expenditure and, ultimately, a more effective regional opportunity.

Quality of life enhancements There are many advantages at the both the local and regional levels to approaching quality of life enhancements cooperatively. Whether enhancing natural resource- based tourism opportunities or community development, the Northwest Commission provides the region’s businesses and residents with a conduit for collaboration in cobbling together and pursing available funding – such as Pennsylvania Department of Conservation and Natural Resources who has in recent years identified preferences for funding more comprehensive (multi- municipal or multi-county) planning and development projects.

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Job training The strengths, capacity and organization that currently exist within the Northwest region provide the member Counties with a significant opportunity to coordinate and enhance job training opportunities. Only a few of the County-specific projects are akin to workforce training; a regional approach to job training enables each county to optimize its support of existing education opportunities while minimizing competition with other counties – say in terms of the development or expansion of specific skill sets. The Northwest Commission can begin this cooperative dialogue among participants to shepherd them in defining the most suitable avenue for implementing training ideas. The Northwest Commission is encouraged to assist Counties and communities in embracing the existing skill sets and training opportunities and to more aggressively approaching aspects of skill “re-training” - especially to better pinpoint how industries can grow.

Regional marketing The Northwest Pennsylvania region, through enhanced communications to businesses and other regions, can market the opportunities of Northwest Pennsylvania. Identifying areas where specific industries are strong, are collaborating or are emerging enables those both inside and outside of the region to evaluate the potential benefits of participating and growing new or allied industries in a region that has established infrastructure, hardware and people trained. The Northwest Commission has the opportunity to be a lead implementer of regional marketing efforts.

C. Catalysts – Attracting and Retaining Talent The success of the Northwest Region will not come simply by offering the traditional incentives generally associated with economic development efforts. The Northwest Region must be a unique niche in the global economy. The Northwest Region must be a place where businesses expand and thrive. There will be certain catalysts that will help the Region attain this goal. These catalysts should be implemented as priorities for the Region.

Attracting and Retaining Talent and Skills Businesses grow and thrive through innovation. The Northwest Region must be able to provide businesses with talent and skills; therefore, it will be imperative for the Region to find a way to attract and retain talent and skills. A number of Talent Attraction Programs from around the country have been gathered and listed as examples of how the Region can design a Talent Attraction Program that fits their needs.

1. State of Michigan a. What: Attracting and retaining the best talent specifically relating to college migration patterns at Michigan public universities

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b. Who: Michigan Economic Development Corporation (MEDC) and the Presidents Council, State Universities of Michigan c. Recommendations: i. Connect with students in other states to various technical fields ii. Track migration patterns of MI grads and structure strategy based on shifts in patters iii. Work with pre-college and college students on choosing career paths and educating them about MI educational and job opportunities iv. Build alumni strategy to attract workers who would consider returning v. Strategy to attract more out-of-state students to attend MI universities vi. Continue national efforts to communicate MI’s role as a high-tech state and opportunities for employment d. Report link: http://ref.themedc.org/cm/attach/CC57DD37-4EB0-400D-A236- 786408E0389C/medc_migration_vcw.pdf

2. Columbus, Ohio – Young Professionals Commission a. What: Comprehensive strategy to attract and retain a talented workforce in Columbus region. Three-part strategy focuses on building the area’s local workforce by connecting area college students with the business community, attracting and retaining young professionals, and assisting area companies in marketing Columbus to potential employees. b. Who: The Columbus Chamber, in partnership with Mayor Coleman, Columbus city Council, Franklin County, Chase Bank, Experience Columbus, the Greater Columbus Arts Council, and the Ohio Department of Development c. Recommendations: i. A web-based portal to house internship opportunities and student resumes ii. Creating online downloadable materials to address the needs of area recruiters iii. Creating a young professionals board consisting of a diverse representation of young leaders 1) Hosting a statewide young professionals summit in Columbus, guiding the Mayors’ vision for Columbus’ Bicentennial in 2012, and serving as a sounding-board for community leaders d. Link: http://b700441e9603e56472e76fceed3901483f5d7759.gripelements. com/pdf/chamberlink/Chamberlink_June_2007.pdf

3. Washington, D.C. – The Greater Washington Initiative a. What: Regional economic development marketing organization that assists firms in expanding their businesses in D.C., northern VA and Suburban MD. The Greater Washington Regional Report (2008) works to attract both workers and businesses to the region by highlighting the area’s excellence. b. Who: The Greater Washington Initiative (GWI) and the Area Business Development Officials Committee (ABDOC)

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c. Recommendations: Does not provide advice as much as it serves as a resource for prospective workers interested in learning more about Greater Washington d. Report Link: http://www.greaterwashington.org/pdf/RR_2008.pdf

4. Albuquerque, New Mexico – Economic Development Department (EDD) a. What: Recruits companies to the area as well as assisting existing companies in expansion efforts b. Who: City of Albuquerque EDD works with Albuquerque Development Inc., NM Department of Economic Development, the NM Economic Development Partnership, and the regional Metro NM Development Alliance c. Actions: i. Prepares general and customized information including relocation packages, a directory of city and state economic information, and a regional atlas about the metro area. d. Link: http://www.cabq.gov/econdev/businessrecruitment.html

5. Pittsburgh, PA – Pittsburgh Perspectives Initiative a. What: Designed to communicate the region’s many quality-of-life assets to talented workers b. Who: Greater Pittsburgh Convention c. Link for prospective employees and anyone thinking about moving to the region. Covers all aspects of living in Pittsburgh area from community and recreation to career and self. d. Link: http://www.pittsburghperspectives.com/

6. State of Wisconsin – Grow Wisconsin Creatively Initiative a. What: Grow Wisconsin Creatively is a public and private action agenda to use the creativity and innovation that are prevalent in Wisconsin as essential tools for local, regional and statewide economic, educational and civic vitality. It provides the best approach to Wisconsin’s participation in the creative economy (key focus). b. Who: The State of Wisconsin through the direction of Governor Doyle (circa 2005) c. Recommendations: i. Invest in WI economic development and community revitalization ii. Assist in creation and retention of high-paying jobs based in creative economy iii. Support a consistently high-quality education system that uses creativity in the acquisition of local and global knowledge and understanding, and prepares students for the 21st century workforce iv. Develop and sustain vital communities that attract creative workers and organizations d. Report Link: http://portalxw.bisoex.state.me.us/mainescreativeeconomy/ growwisconsincreatively-cabinet.pdf

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7. Initiative for a Competitive Inner City (ICIC) a. What: Independent not-for-profit company created by Harvard professor Michael Porter to target inner city regeneration through a focus on competitive economic advantages as opposed to social disadvantages. Work in St. Louis, MO; Louisville, KY; Milwaukee, WI; Brooklyn, NY; Newark, NJ; Reading, PA; Akron, OH , among others b. Who: ICIC partnership with leading US corporations (Bank of America, The Boston Consulting Group, Merrill Lynch, PwC, Staples), the Economic Development Administration, the Small Business Administration, and the US Conference of Mayors (USCM) c. Impact: i. Transforming thinking ii. Engaging leadership iii. Harnessing opportunities for business development iv. Driving public and private investment v. Building critical mass d. Link: http://www.icic.org/site/c.fnJNKPNhFiG/b.3474895/k.C2D5/ Impact.htm

Additional: • The Governor of Hawaii created a Kama’haina Come Home program targeted to former Hawaiians in LA, SF, and Las Vegas

• The Greater Dubuque Development Corporation managed the “Dubuque: Your hometown. Your future.” workforce recruitment campaign.

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VI. Action Plan and Performance Measures

A. Action Plan As the Northwest Region moves forward to implement its projects, key stakeholders are encouraged to come together to identify more specific priorities and associated funding needs. These key stakeholders represent a broad range of the population including, but not limited to County planning offices, redevelopment authorities, planning commissions, the Northwest Commission, educational institutions and those in private industry. Each of these entities to one degree or another is a part of the Region’s future success.

Understandably, implementation will occur over time based upon a series of factors: project readiness and available funding. As its next task, it is recommended that the CEDS Committee under the direction of the Northwest Commission take on identifying the status of each of these factors in relationship to each of the projects outlined in this report. By defining the status of project readiness and available funding, each project should then be categorized into one of the following potential horizons:

Horizon 1 – Project is “shovel ready” with planning completed and funding in place

Horizon 2 – Planning is completed but funding has not been secured

Horizon 3 – Planning is underway or in conceptualization; no funding has been secured

B. Performance Measures After each project’s Horizon is defined, the CEDS Committee should identify appropriate implementation partners and specific targets for funding sources. As each of the projects is initiated, the Northwest Commission and identified implementation partners can “measure” how implementation is progressing by evaluating success in a number of ways:

• Net job retention • Net job growth • Level of job diversification, including increases in IT jobs • Net increases in wages • Net population growth • Percentage change in non-senior population • Net new private sector investment • Net public funds invested in the region based on CEDS recommendations • Net increase in persons graduating from local high school, technical school and community colleges. • Percentage decrease in unemployment rate • Net increase in Labor Force and Employment

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• Net decrease in the number of persons who commute outside of the region for jobs • Amount of new investment in infrastructure • Access to available broadband • Public water and sewer availability • Transportation • Number of new companies who moved to the region • Net increase in tourist visits and visitor days • Net increase in occupied hotel/motel rooms

C. Annual Development Summit The Northwest Commission should convene project implementation stakeholders annually as part of a Development Summit to review the status of past year successes as well as to strategize upcoming priorities and opportunities for additional project partnerships and implementation.