Economic Insider — February 27, 2009

Director's Focus
Alliance Board Adopts Strategic Plan

As reported in recent weeks, we have been busy preparing a strategic plan to provide direction and to guide the work of the Economic Progress Alliance for the foreseeable future.

To meet our expectations in establishing a strategic plan, it was critical that the Alliance Board of Directors be engaged in a deliberate process to determine and to take ownership (responsibility) for the future direction of the organization. While day-to-day operational execution is very important to achieve success, the ultimate success of organizations such as the Economic Progress Alliance will be determined by the collective results of its acts over a long period of time. The long view taken by the Alliance Board of Directors in crafting new vision and mission statements, and in the adoption of a formal strategic plan serves to focus our efforts while simultaneously requiring greater levels of accomplishment.

The recently adopted strategic plan includes revised vision and mission statements, organizational and staff charts, and detailed economic development and organizational goals and objectives. To access the entire Economic Progress Alliance Strategic Plan, click here.

We would always welcome and look forward to comments on our plan.

Until next time...

Mark Turner

Economic Downturn Continues

The economic downturn is continuing at a faster pace than estimated, according to a recent Commerce Department report, shrinking at the worst pace in 26 years. Sharper cutbacks in consumer spending, which accounts for about two-thirds of economic activity, along with a bigger drop in exports sale, and reductions in business spending and inventories all contributed to the large downgrade. The downhill slide in the last quarter 2008 was the worst since 1930.

The current number of laid-off Americans continuing to receive unemployment benefits has topped 5.1 million. First time requests for unemployment jumped to 667,000 in mid-February from the previous week's figure of 631,000. The four week average of initial claims rose to 639,000, the highest in more than 26 years. The nation's unemployment rate is now 7.6%. The Federal Reserve expects this rate to rise to near 9% this year.

American consumers, faced with vanishing jobs, sinking home values and shrinking investment portfolios, have slashed spending where they can, from cars, furniture and appliances to clothing and incidental items. Businesses are slashing production, payrolls, inventory and investments. Economic troubles overseas as well are diminishing demand for domestic goods and services.

None of this is surprising to any of us. It is a vicious circle of which we are all aware. Crawford County is not immune to these happenings and are all feeling the effects. Generally, the service, electronics and telecommunications industries, while definitely feeling the crunch, have been weathering the situation so far. The healthcare industry is now starting to feel the effects. Hardest hit are the lumber, and oil and gas industries, and manufacturing, especially those mostly connected with the auto industry.

Everyone is trying different methods and tactics to get not only their businesses but their employees through this storm. While some have reluctantly had to lay off, others have been able to implement different measures to prevent or at least delay as long as possible the need to let employees go. Some companies have initiated job sharing and flexible work schedules, while others have cut their work weeks to three- or four-day weeks in lieu of lay offs. Those who had been able to resist the need for employees to pay into their insurance benefits now require their contributions, and inventories are being further reduced.

In an effort to break the downturn cycle and bring life back to the economy, the President has signed a $787 billion recovery package of increased government spending and tax cuts. It is hoped that the economic decline will lessen by the end of this year and recovery will happen next year. Whenever, it is going to be a long and slow process as businesses will be reluctant to jump too quickly until they are confident that the economic rebound is on a positive footing.

For those interested, there are a couple sites online, recovery.gov shows how the money from the American Recovery and Reinvestment Act of 2009 is spent and usa.gov, provides details of the Act as well as additional resources.

source: Associated Press

PA Trade Representatives Spring Visit

Three locations are set for the Spring 2009 Visit of the Pennsylvania Trade Representatives to the northwest region offering businesses the opportunity to meet the Pennsylvania representatives to discuss their export potential. The Spring visits are focusing on industry sectors, however, meeting appointments are available for any Pennsylvania company interested in meeting with the listed representatives.

The first visit, focusing on the power generation and energy industry (mining, rail, oil and gas, renewable energy, life sciences and medical, and environmental technologies), is scheduled for Tuesday, March 24th, at Penn State Behrend, 5240 Knowledge Park, Erie, with representatives for the United Kingdom, Australia/New Zealand, Brazil, Saudi Arabia, South Africa and the Eastern Mediterranean. A Breakfast with the Pros will begin at 8:00 a.m. with the trade representatives hosting one roundtable each to share in-country intelligence including country overviews, export opportunities, best business practices, distribution/marketing channels and cultural differences. This will be followed by 30 minute one-on-one meetings starting at 9:00 a.m. offering attendees the opportunity to introduce their company, products and objectives.

The second visit will be held April 29th at the Holiday Inn in Clarion, focusing on the building and hardwoods industry (manufactured housing, green building, lumber, construction materials, construction machinery) with representatives form China-Beijing, Canada, Russia, Singapore/Vietnam and the United Arab Emirates. The last visit will be May 13th at the Radisson Hotel in West Middlesex with a focus on the metals and machinery, electronics and IT industry (automotive, aerospace and defense, plastics and resins, electronics and IT, powdered metals, industrial machinery) with representatives from Germany, India, Japan, Korea, Mexico and China-Shanghai. The format for all visits is the same with a breakfast roundtable followed by individual meetings.

Registration is $20 per company per visit. For additional information and appointment registration, contact Dorte Heffernan at 814-677-4800 x 110.

Breaking into the Trade Game

The international program of the Northwest Commission, in partnership with the U.S. Department of Commerce and the Gannon Small Business Development Center, is offering a five-module training series to the exporter to be held at the Knowledge Park Center in Erie. This training series is for new to exporting companies, experienced exporters training new staff, or experienced exporter wishing to brush up on the basics. The dates for the series are as follows:

  • April 14, 2009 - Making the Export Decision
  • April 28, 2009 - International Market Selection
  • May 12, 2009 - The Export Transaction and Logistics
  • May 26, 2009 - Financing and Payment Methods
  • June 9, 2009 - Legal Aspects of Exporting

The cost to register is $30 per person, per session, and $15 for each additional registrant per company. Sessions will run from 9:00 a.m. to 12 noon. For further information or to register, contact Claudia Garcia, at 814-454-7191.