Economic Insider — June 5, 2009

Director's Focus
Strategy of Reutilization

As most of you are well aware, throughout Crawford County’s recent history economic development organizations have pursued a strategy to redevelop and reuse blighted properties to support the economy of the region. These initiatives have resulted in the reversal of blight and their productive reutilization combine to represent considerable economic value to the community. Properties such as…

  • Crawford Business Park – former Avtex fiber plant
  • Talon Plant # 5 - multi tenant facility
  • Talon Plant # 7 – private corporate headquarters (Vantage)
  • Bessemer Railroad property – Bessemer Complex, Office Building, Edinboro University, PMI
  • Linesville – former Tel-O-Post plant – Multi tenant / Distribution Center
  • Titusville Opportunity Park – formerly Cyclops

I know you all know about these properties and the efforts undertaken over the years by a lot of people and organizations to make them successful. These efforts keep on giving by providing a unique and valued capacity in Crawford County to directly influence and reduce the cost of doing business for those who occupy these facilities. Businesses and organizations located in these facilities (nearly 40 total) have and continue to enjoy lease and operating cost advantages over other locations, contributing to improved competitiveness and greater profitability.

My focus on this subject this week is to support an observation that during times of economic turbulence or transition, ingenuity, creativity and entrepreneurial drive can often provide critical incremental value to the economy by developing foundations for long term economic growth. We are uniquely positioned to support innovation and new business start-ups and are committed to using the business cost advantages associated with the redevelopment of these properties to assist in the establishment of new business ventures.

To that end, if you are aware of anyone pursuing, or maybe contemplating pursuing, what you believe to be a new viable business venture that could use our help and support, please refer them directly to us. Small “cottage” businesses or new ventures that involve the potential for mass sales and production are of particular interest. Businesses plans which are dependant upon the use and cost of real estate are key targets for support.

Particularly during times like these, we want to be sure to use our unique advantages to the benefit of innovators, entrepreneurs and the community.

Until next time…

Mark Turner

PA Rural Counties Exporters

Exports have become a large component of the Gross Domestic Product (GDP) over the past three decades, increasing from 5% of GDP in 1970 to more than 12% in 2007. They have also become an significant factor of Pennsylvania's Gross State Product with annual sales to foreign buyers increasing from $16 billion in 2003 to more than $29 billion in 2007. This growth in exports was the eighth largest nationwide. This trend and the potential for future growth has resulted in the Commonwealth instituting a large network of export trade consultants and programs to assist Pennsylvania businesses expand into international markets.

Pennsylvania is an important exporter of processed foods, crop and livestock products, agricultural and forestry machinery, and agricultural chemicals according to 2007 data compiled by the World Institute of Strategic Economic Research. According to the Pennsylvania Department of Agriculture, the Commonwealth ranked first among all 50 states in the production of export grade hardwood, second in hardwood logs, 10th in furniture and 19th in paper.

On a county level, researchers determined that roughly 25% of Pennsylvania's exporters reside in rural counties and 75% in urban counties. Among rural counties, Butler and Crawford County ranked first and second respectively in terms of the number of exporting establishments and total employment among rural counties. Crawford County had an estimated 80 exporting companies with about $162 million in exports. Monroe County ranked first in terms of sales, however, due to one large manufacturer and exporter of biological vaccines and chemicals. Most Pennsylvania exporters are in the manufacturing industries such as chemical manufacturing, fabricated and primary metals, machinery manufacturing, food product manufacturing and transportation equipment. However, a great majority of rural exporting firms export less than 10% of their total output and still sell most of their products to domestic buyers.

The size of exporting firms does not vary significanlty between rural and urban counties. Pennsylvania exporters are relatively small in size with about 80% of registered exporting businesses employing fewer than 100 workers. This is consistent with national level reports that show the great majority of exporters are small and medium sized. The research findings also show that about 82% of rural exporters in Pennsylvania do not use any government assistance.

In 2007, the total estimated impact of exporting industries on Pennsylvania's total income was $66 billion. In the same period, the total estimated number of jobs related both directly and indirectly to exporting activity was 375,363.

Save the Date

41st Greater Meadville Area Day

The Country Club

Thursday, August 6, 2009

Chamber Breakfast of Champions

Representative Brad Roae will speak at the June Chamber of Commerce Breakfast of Champions on Friday, June 12th at 7:30 a.m. at the Community Center of Crawford County. Roae will talk about the state budget that is currently being worked out for the next fiscal year and whether or not it will include tax increases.

Currently, Representative Roae serves on the House Insurance, State Government and Youth Committees. During the 2007-2008 session of the General Assembly, he served on the Speakers Commission on Legislative Reform which was created to revamp the rules of the House of Representatives.

To register for the Breakfast of Champions, email the Chamber office or call them at 337-8030. Cost for the event is $16 for Chamber members and $18 for non-members.