Economic Insider — July 17, 2009

Director's Focus
Water System at the Keystone Regional Industrial Park

As you may have recently read in the Meadville Tribune, as of late we have been very busy with efforts to design, fund and construct a “public” water system at the Keystone Regional Industrial Park. Actually, because the original purchase of the property on which we intend to develop the park also included the acquisition of the water system that originally served the Keystone Ordinance Works during WWII, our efforts are more accurately described as the rehabilitation of a highly antiquated system.

This undertaking has received support from the Commonwealth’s PennWorks program as well as from federal sources. However, a number of challenges beyond our control have caused both delays and increases in project cost. Issues such as the proximity of nesting eagles to major water wells targeted for use; regulatory concern for the potential presence of an endangered rattlesnake habitat and plant species; and the severely deteriorated condition of the existing infrastructure have resulted in the need to alter established plans, and to fund and implement additional required investigations in order to proceed.

With all of this behind us, we now await word from Washington with regard to a pending application for supplemental funding to begin construction (reconstruction) in September of this year.

While this project and others associated with the development of the Keystone Regional Industrial Park have been challenging, planning and creating the physical capacity to support desired industrial development is a competitive imperative. While “build it and they will come” should not be assumed by any means, without a commitment to prepare and develop the physical capacity to efficiently compete for industrial growth we are not only disadvantaged, we’re not even in the game.

On a much smaller scale, our experience in preparing and developing Crawford Woodlands (across from the Crawford Business Park on Mosiertown Road) stands as an excellent example of a positive development that would not have occurred but for the commitment of time and capital to accommodate private investment and jobs.

The work is challenging but ultimately very likely to be successful and well worth the effort.

Until next time…

Mark Turner

Local Company Markets New Machine

Earlier this year, Nutec Tooling Systems officially put on the market their newest product, the TrayTender, a modular, robotic machine to automate parts handling to and from trays. The system is designed for integration with molding machines, machining centers, or other assembly and test automation. Its 6-axis robot(s) can also be easily configured to provide seconday operations such as inspections, marking, overmold insert loading and assembly tasks. The system was under development for over a year after the need for such an operation was recognized. After designing, building and testing the machinery, it was finally ready to put on the market.

Nutec has been providing innovative, cost-effective turnkey design and build services to their clients for many years. Ken Deane and his partner, Jerry Peters, started the company in the basement of a building owned by Peters in 1983 with three employees. Through the ensuing years, Deane became full owner and the company continued to outgrow new spaces until, in 1992, they constructed the 27,000 square feet facility they occupy today at Research Drive in Meadville. While one of the original employees is still there after 25 years, Ken retired - well, semi-retired - in late 2008, and sold the company to his son Brian and daughter Bobbi Jo Decrapio.

Today, Nutec's major customer base is the east coast of the United States although they do ship internationally. They supply automation equipment to a variety of industry sectors including medical device, electronics, energy, transportation, telecom, automotive, defense and construction. They are able to adapt and apply technology from multiple industry applications to provide innovative solutions for their clients, as well as custom design products to meet their customers' needs. Of their many customized products, probably the one most publicly recognized (although sometimes overlooked because it has become so familiar) innovations developed from a customer's request is the battery tester in the plastic wrap of the battery packs.

Happenings at the RDA

In recent activities, the Board of Directors of the Redevelopment Authority of the City of Meadville (RDA) has named Jill M. Groves as Executive Director effective the first of this month. Ms. Groves joined the RDA in March, 2004 as the properties and grants coordinator. She was appointed Interim Executive Director in August, 2008 following the resignation of her predecessor, Andy Walker.

Ms. Groves is a Guys Mill native and a graduate of the former Randolph East Mead High School. Her community activities include Crawford County Convention and Visiitors Bureau board member; Crawford County Read Program past board member; Laurel Technical and Business Institute, Meadville advisory board; NW Pennsylvania Incubator Association board member; Chamber of Commerce finance and audit committee and past board member; Council of Governments associate member; Fair Housing Officer for the city of Meadville; Beautification Committee member for the city of Meadville; and Streetscape Committee member for the city of Meadville.

The RDA staff has been working for the past several months to prepare the applications for both the FY2009 CDBG Entitlement Allocation and the FY2009 CDBG-R, which is the application for stimulus monies. Both applications have been now been submitted for consideration. In 2009, the city of Meadville anticipates receiving $367,023 in entitlement funds and approximately $93,960 in stimulus funds.

Earlier this year, the RDA resolved to submit an application to the Pennsylvania Department of Community and Economic Development DCED) for grant funding for the establishment of a Main Street Program in the city of Meadville. The formal application was submitted in May 2009. This month, representatives from DCED along with representatives from the Pennsylvania Downtown Center, the statewide nonprofit organization that provides assistance and training to participants of the program, travelled to Meadville to conduct a formal appraisal of the city.

The effort to bring the Main Street Program to downtown Meadville is commonly known as Make It Meadville. Volunteers of the Make It Meadville campaign are responsible for the recently introduced First Friday in Downtown Meadville. These dedicated volunteers are also working in conjunction with the Chamber of Commerce on the Thunder in the City event scheduled for August 15, 2009.

To gain city-wide support of the Main Street Program, the RDA and Make It Meadville volunteers have worked exhaustively to solicit the matching funds required to obtain the formal Main Street designation. As a result, the city of Meadville, Allegheny College and Meadville Medical Center have all pledged to contribute $50,000 to the program over the next five years.

Recent Loan Activities

The Economic Progress Alliance and Meadville Redevelopment Authority loan committee recently awarded two Crawford County businesses with low-interest loan assistance for their projects.

Precise EDM and Tool of Meadville recently received a $30,000 low-interest loan from the U.S. Department of Agriculture, Intermediary Relending Program through the Alliance/Redevelopment Authority Loan Committee. The funds will be used for working capital to assist with the financing of accounts receivable and purchasing inventory as business has increased. Total project cost is $40,000 with a projected increase of two new employees.

Owner Brian Dixon started Precise in 2002 and currently employees five people. The company specializes in both mold and die spare parts for the automotive industry. Their major customers are Tyco Electronics, a glpbal provider of engineered electronic components, and Oiles America, a major supplier of bearing products to the auto industry.

Hogue's Tree Service of Cochranton was approved for $15,000 from the Alliance Revolving Loan Fund towards a total project of $20,000. The funding will be used for equipment purchase, working capital and some graphic design. The business, started in 2006, is a father-son owned company that is currently operated on a part-time basis. Their goal is to grow the business into a full-time enterprise. They provide tree pruning, limb removal, complete tree removal and clean-up and removal of all wood debris to commercial and residential customers in Crawford County.

If you would like further information on available loan programs that may fit your project, contact Larry Morganat the Economic Progress Alliance, 814-333-2299 x227.

India Trade Mission 2009

The Commonwealth of Pennsylvania Center for Trade Development is offering interested companies the opportunity to participate in the India Trade Mission 2009 in Mumbai and Bangalore, December 8-11, 2009. The itinerary provides for cutomized one-on-one, pre-arranged business meetings; the opportunity to visit potential partners at their facilities; and networking luncheons with local businessmen who are members of leading industry associations and chambers of commerce.

Mumbai (Bombay) is the commercial and financial capital of India. Some of their major industrial sectors include banking/finance, pharmaceutical, textile, chemical, petroleum/oil/natural gas, food processing and agricultural equipment/tractors. Bangalore is Asia's Silcon Valley. Many mutinational corporations, especially hardware and software giants, have operations there. Additional sectors in Banglaore include biotechnology, aeronautics/aerospace, telecommunications, defense, heavey electrical and engineering.

There are ten spaces available on a first-come-first-served basis for this mission. Cost is $450 per company with a maximum of two people per company. Deadline for registration is September 25th. If you are interested in this trade mission or would like further information, contact Dorte Heffernan at the NW Commission, 814-677-4800 x110.