We’re Making Progress
I’m not one generally prone to giving a lot of credence to the various national rankings of communities and places typically published by entities such as Forbes or Fortune magazines. They have always seemed to me to be very self-serving in that when Forbes, or any other publication, annually ranks hundreds of communities, no matter what the issue or outcome that publication is sure to receive considerable media attention in the vast majority of those communities included in their review. Generally, the evaluations often seem subjective and somewhat arbitrary.
However, I recently came upon an analysis by the Milken Institute which I found interesting. In a recent report, the Milken Institute evaluated and compared the 50 states for wages, tax burden, cost of power and rent. On a scale where 100 is the national average, Pennsylvania’s costs were determined to be slightly below the national average at 97.2 and ranked 21st, while Hawaii was #1 at 151.5. Of particular interest were the rankings of regional competing states such as New York (130.9) New Jersey (120.9) Massachusetts (130.64) and Ohio (91.0).
While I was somewhat pleasantly surprised to see what appears, at least generally, to be a slight advantage over some regional competitors, this study was not intended to be predictive and does not attempt to inventory future challenges associated with revitalizing a mature economy experiencing substantial structural change. And while the Commonwealth has a long way to go to be among the best places in which to do business, it is very good to see that maybe some progress is being made.
Until next time..
Mark Turner
Three area businesses were recently received low-interest loan funding for their projects.
The Hair Haven, a start-up beauty salon, was awarded a $9,000 loan from the Meadville Redevelopment Authority Revolving Loan Fund for the purchase of business furniture and products, and office equipment as well as for some minor renovations to the facility to accommodate the salon. Hair Haven will be a full service hair salon located on 799 Water Street, Meadville. Owner Cynthia Allen has 25 years experience in the field of cosmetology, five as an instructor.
Al's Melons Farm Market & Greenhouses was approved for a $180,000 First Industries Fund Agriculture loan to purchase land on Route 6 in Conneaut Lake for business expansion. John O'Grady, owner, plans to construct a large greenhouse and a facility on the property to sell produce and flowers. The project will allow him to consolidate and enhance his current operations.
Jason and Jessica Kennedy were approved for a $125,000 First Industries Fund Agriculture loan to purchase a 157 acre dairy farm in Cochranton. The Kennedy's have been running a dairy operation since 2000 and currently lease property for their operation. The purchase of the dairy farm will enable them to expand their pasture area from 15 acres to 20 acres. The new facility also has 76 wooded acres and 60 tillable acres, enabling the Kennedy's to do their own forages and save approximately $30,000 each year. Project plans also include renovation of stalls in the barn as well as construction of a poll barn. In addition to raising milk cows, Jason also does hoof trimming.
The shopping bonanza at this time of year - from the Thanksgiving and Christmas holiday season to other wintertime celebrations like Hanukkah and Kwanzaa - provide a boost of activity to Pennsylvania's economy, as anyone trying to manipulate through the stores and malls can attest.
To accommodate the throngs of holiday shoppers, retail outlets increase their staffing. According to the Bureau of Labor Statistics, the retail trade industry added 39,000 employees from October to December, 2006. Pennsylvania employment alone for that period jumped 12,800 jobs, an increase of 21.2%. Pennsylvania ranks 5th in the nation in the number of retail trade employees with 655,800 in 2006.
Nationwide in 2006, retail sales represented $31.4 billion in December alone, a 44% spike over the previous month. Certain types of stores saw even more marked increases: bookstores jumped 86% between November and December 2006 while jewelry stores saw increases of 155%. According to the National Candle Association, 35% of all candle sales occur during the holiday season. In 2002, Pennsylvania candle manufacturer shipped $11.4 million worth of candles.
Pennsylvania agriculture gets a boost during the season also. In 2006, Pennsylvania sold more than 17.3 million Christmas trees according to the US Department of Agriculture. Pennsylvania farms raised 10.5 million turkeys, representing a value of more than $105 million. The Commonwealth is ranked 4th nationally in its production of potted poinsettias with more than 4 million sold in 2006. Now the most popular potted plant, more than 120 Pennsylvania producers grow poinsettias, contributing $13 million to the state's economy. And let us not forget that old fashioned holiday treat eggnog, which 37 of Pennsylvania's nearly 200 milk processors sell, contributing to the state's $4.2 billion a year dairy industry.
We wish everyone happy holidays
and a safe and prosperous New Year.
Join the Commonwealth's Center for Trade Development at EXPOMIN in Santiago Chile, April 14-19, 2008. EXPOMIN is the largest and most important mining show held in Latin America with 920 exhibitors and 60,000 visitors expected in 2008, drawing participants from as far away as Australia, China, Russia, the Middle East, Canada and the United States.
The best potential for exports to Chile is related to the provision of machinery, equipment and mechanical components for the stages of drilling, blasting, transportation, processing, smelting, refining and packaging of copper, especially those products which incorporate the latest technology and enhance production efficiency.
Chile is one of the most stable, low-risk countries in South America. Since the U.S. entered into a Free Trade Agreement with Chile in 2004, bilateral trade increased by 154% by 2006. The relative strengthening of the peso has also had a positive impact on imports denominated in U.S. dollars.
The trade mission provides participants with networking opportunities, pre-screened one-on-one business appointments with detailed company information in advance, in-country market research, and identification of hotels, interpreters and drivers.
Participation fee is $2,500. The first 10 eligible and registered companies will be accepted and share designated space within a 63 square meter booth. Companies are responsible for all travel and business-related expenses. If you are interested in this trade mission, contact Dorte Heffernan at the NW Commission, 814-677-4800 x110. Registration deadline is February 8, 2008.
The Northwest Commission's Board of Directors approved at their December meeting an interest rate reduction for the microloan program from 9% to 6% effective immediately, thus making it a more competitive financing option for eligible applicants. Maximum loan amount under this program is $20,000.
The microloan program is a very flexible funding source for machinery and equipment (new or used) and related expenses, and working capital. It is open to commercial and retail as well as industrial and manufacturing businesses, and covers a wide variety of business expenses from the machinery required for manufacturing a product to equipment such as vehicles needed to operate a commercial enterprise efficiently and effectively. Funds from this program cannot be used for real estate.
If you would like further information on this program or other financing opportunities for you business project, contact Krista Ikirt of the Economic Progress Alliance at 814-333-2299 x 223.
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Economic Progress Alliance of Crawford County
764 Bessemer Street, Suite 101
Meadville PA 16335
814-333-2299
01/04/2008