Economic Insider — June 19, 2009

Director's Focus
Just a few items this week:

First, congratulations to Chuck Guiste on his recent appointment as the Executive Director of Precision Manufacturing Institute (PMI). Prime among the requirements of area manufacturers is the need for a qualified and productive workforce. PMI with its strong engagement from the private sector has become a model among workforce training providers, having provided contemporary skills to hundreds of folks employed by area manufacturers and others. We at the Economic Progress Alliance welcome Chuck and wish him and PMI continued success in achieving their critical mission.

The state’s fiscal problems appear to have the potential to adversely affect the practice of economic development by local organizations. While the Economic Progress Alliance is self sufficient, operating without administrative support from either local, state or federal governments, we, along with our counterparts throughout the Commonwealth, have long participated in an aggressive outreach program that has traditionally received partial funding from Harrisburg known as BREP (business retention and expansion program). Our practice in recent years has been to meet with between 200 to 250 targeted area businesses yearly to determine if or how we might support their needs. During this fiscal year ending June 30th, we will have met with 240 businesses, many of whom have been assisted directly or by agency referrals made by Alliance staff. As of this writing, projected budget deficits have resulted in the complete elimination of state support for the BREP program.

It seems a consistent problem that during times of either extreme deficits or surpluses policy makers fail to prioritize economic development funding as important to economic recovery or growth. Certainly budget deficits are intolerable, and cuts in spending are greatly preferred over tax increases, but focusing on the retention and expansion of existing businesses should be considered a fundamental responsibility of governments claiming to have a commitment to economic development. While I hope a solution is found for continuing public support for the Business Retention and Expansion Program, with or without it, the Alliance and all of its counterparts throughout the Commonwealth must find a way to continue this critical work.

This week’s observation: economic development is often defined as an event rather than a process. Because we often shine the spot light on end results, the general public, and maybe some policy makers, tend not to appreciate or understand the need for consistent day-to-day efforts. We all know that a touchdown is an “event” enabled by the “process” of blocking and tackling. Economic development, like many other business endeavors, is much more about blocking and tackling.

Until next time…

Mark Turner

C&J Industries Expansion

C&J Industries of Meadville currently has a $1 million expansion project underway to add 3,200 square feet of clean room manufacturing capacity that will include 1,000 square feet for a new packaging room, auxiliary equipment room and an enlarged gowning area. New machinery will also be added, including five all-electric Toshiba injection presses and a high-speed computer numerically controlled mill.

Four of the new presses have 65 tons of clamping force while the fifth one has 110 tons. Two of the presses will be outfitted with automated parts handling system and a vision inspection machine. The systems were designed in-house by the company's engineering group. The new machinery will increase C&J's clean room molding machines from 17 to 22 presses, ranging from 20 to 390 tons.The new mill is a Makino Model S56 3-Axis CNC high speed mill which can accommodate a work piece up to 1,100 pounds and is equipped with a Blum laser inspection system and probe to facilitate unattended operation.

C&J has had clean room space for more than 20 years but in recent years has been expanding its focus on medical device and pharmaceutical customers. This expansion project gives them the ability to accomodate additional business they have been awarded.

C&J Industries began in 1962 when two young toolmakers, Dick Johnston and Harold Corner, started a small tooling company. They became renowned for building high-precision injection mold components and quality injection molds. Eventually, one of their customers wanted them to qualify the tools prior to shipment and, upon learning they didn't have presses to do this, shipped to the company two slightly used injection molding presses, thus not only helping his own business but setting C&J into a new area of business. The company continued to grow and expanded in the 80s into the medical and business machine markets, becoming an FDA registered medical device manufacturer producing medical injection molded components and complete medical devices.

The company became the first injection molder and tool builder to receive ISO 9001 & QS 9000 certifications from Underwriters Laboratories. In 1998, C&J was selected to be the primary contract manufacturer of fiber optic apparatus for Lucent Technologies. They began to offer product design and development services to their customers, investing millions of dollars to improve their technology in every manufacturing discipline, adding best-in-class all-electric molding presses and tripling their clean room molding capabilities. Their tool shop is equipped with some of the highest speed and precision machining capabilities in the industry.

Today, C&J Industries is a total plastics contract manufacturer and product design company specializing in manufacturing complex, high-precision injection molded components and custom packaged assemblies. Their customers include not only the medical industry but telecommunications as well as consumer and industrial product industries.They have approximately 250 employees working in their 143,000 square feet facility located in Meadville.(www.cjindustries.com)

Loan Approved for Conneaut Lake Park

A USDA Intermediary Relending Program (IRP) low interest loan in the amount of a $150,000 was recently awarded to Park Restoration LLC for further renovations and operations of the Hotel Conneaut, Beach Club and Dockside at Conneaut Lake Park. Problems to be addressed in this project phase include new construction as well as renovations, machinery and equipment, and operating costs and working capital. Some infrastructure upgrades of Hotel Conneaut have already been completed with the addition of new plumbing, electrical wiring and energy improvements.

Park Restoration LLC has entered into a 30-year lease on the Hotel Conneaut and a 20-year lease on the Beach Club and Dockside from the Conneaut Lake Park Board of Trustees. Partners Geg Sutterlin and Steve Popovich have extensive experience in all phases of commercial and residential construction as well as strong business backgrounds. Plans for the Hotel Conneaut include keeping it open at least 9-10 months of the year with new events in the hotel and on the lawn, and initiate efforts to attract small business meetings as well vacation travelers. Remodeling and re-opening the Beach Club and bringing in popular musical bands, and Dockside for teen dances and other events such as bingo and flea markets are also part of Park Restoration's master plan.

The USDA Intermediary Relending Program is administered by the Economic Progress Alliance and can be used for numerous project aspects to assist Crawford County businesses. For further information on the IRP or other funding assistance programs available through the Alliance, contact Larry Morgan at 814-333-2299 ext. 227.

Government 101 - On the Road in Crawford County

A half-day introductory training seminar to provide area companies with an overview of how to do business with the federal and state governments will be held Wednesday, June 24, 2009 at the Douglass Conference Center in the Bessemer Commerce Park, Meadville. Registration will begin at 8:30 a.m. and presentations will start at 9:00 a.m.

This event is for any company looking to start working with or to refresh their knowledge about the sites and certifications of the federal and state procurement process. Representatives from the Northwest Commission's Procurement Technical Assistance Center program and the Pennsylvania Department of General Services will present and be available for a question and answer session. Topics such as set-asides, bid leads, registrations, and working through government opportunities will be addressed. The U.S. government spends over $280 billion a year on buying over 17 million different items. State and local governments are also potential profitable markets for companies.

There is no charge to attend the seminar but registration is requested. For more information or to reserve a spot, contact Candace Glover at 814-677-4800 x107. This event is made possible through a partnership of the Northwest Commission, NW Industrial Resource Center, National Tooling and Machining Association, and Economic Progress Alliance.

Energy Bulk Purchasing Seminar

The Economic Progress Alliance is co-hosting an Energy Bulk Purchasing Seminar with the NW Industrial Resource Center (NWIRC) from 8 - 10 a.m. on Wednesday, July 15, 2009 in the Douglass Conference Center in the Bessemer Commerce Park, Meadville. The seminar will most benefit manufacturers with natural gas bills over $20,000 per year and electric bills over $10,000 per year, but all manufacturers are invited to attend.

The NWIRC has contracted with Northeast Energy Advisors, a Pennsylvania energy advisory and procurement firm, to assist in creating this energy buying workshop. Participants in this program will receive the lowest-cost, most competitive natural gas and electricity supply prices available from the marketplace. After the presentation, Northeast Energy Advisors will meet individually and confidentially with interested companies to review their gas and electric bills, and estimate their annual savings with bulk purchasing.

Now is the best time to prepare for the removal of Penelec's rate caps by joining with other manufacturers in our area and locking in today's low rates through bulk purchasing. There is no charge for this seminar but registration is required. Please call Jean Miller at 814-456-6299 to register. Registration and further information is also available online.