Philadelphia 2021 An in-depth review of the key issues facing the economies of Bucks, Chester, Delaware, Montgomery and Philadelphia counties, featuring the exclusive insights of prominent industry leaders
$159.00 ISBN 978-0-9988966-1-8
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CONTENTS
Contents:
Philadelphia 2021 ISBN 978-0-9988966-1-8 President & CEO: Abby Melone Chief Financial Officer: Albert Lindenberg Regional Director: Jack Miller Senior Editor: Mario Di Simine Regional Editor: Max Crampton-Thomas Art Director: Nuno Caldeira Executive Director: Josh Greenberg Content Manager: Joey Garrand Writers: C ameron Saunders; Esteban Pagés; Sara Warden Office Assistant: Michelle Orellana Intern: Brendan Meagher Invest: Philadelphia is published once a year by Capital Analytics Associates, LLC. For all editorial and advertising questions, please e-mail: contact@capitalaa.com To order a copy of Invest: Philadelphia 2021, please e-mail: contact@capitalaa.com All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the express written consent of the publisher, Capital Analytics Associates, LLC. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication. Capital Analytics Associates, LLC accepts no responsibility for the return of unsolicited manuscripts and/or photographs, and assumes no liability for products and services advertised
3 Chester County: 4 Growing stronger: Chester County is ready-made to meet the challenges of the new normal 5 Interview: Marian Moskowitz, Commissioners’ Chair, Chester County 6 Interview: Brenda Allen, President, Lincoln University 7 Interview: Paul Redman, President & CEO, Longwood Gardens 9 Interview: Joel Frank, Chairman & Managing Partner, Lamb McErlane, PC Attorneys at Law
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| Invest: Philadelphia 2021 | CHESTER COUNTY
herein. Capital Analytics Associates, LLC reserves
10 Roundtable: Goals and opportunities
the right to edit, rewrite, or refuse material.
Josh Maxwell, Commissioner, Chester County; Michelle Kichline, Commissioner, Chester County; Susan Hamley, Executive Director, Chester County Conference & Visitors Bureau; Brian O’Leary, Executive Director, Chester County Planning Commission
Photo Credits: Chester County: pg. 3, 4, 6 – Chester County Planning Commission
Chester County: With an ideal location, a diversified economy and an enviable education and healthcare landscape, Chester County has positioned itself as an attractive destination to live, work and raise a family. Its resilience in the face of the COVID-19 pandemic and a government that understands the importance of protecting local businesses has only bolstered its reputation.
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Growing stronger: Chester County is ready-made to meet the challenges of the new normal With an abundance of wide-open spaces, a highlyrated education sector and a sought-after quality of life, Chester County is on the rise. A plum location and a diversified economy that helped the county stave off the worst of the COVID-19 pandemic have positioned Chester County as a nationally recognized destination to live, work and raise a family. Its key virtue has been most evident during the pandemic in particular, giving the county a unique opportunity to face the new normal head-on. When the world began to place greater importance on living spaces, the county stood out as one deeply rooted in open space. About 142,000 acres, or 29% of its land area, is preserved. For many, this affords a desirable quality of life that is now crucial when selecting a place to live, which is why the county continues to experience one of the highest rates of net in-migration in the state. With good access to award-winning top public and private schools, thriving urban centers and recreational events, the county also is attracting a younger population, which positions it well for future growth. Projections are for the county’s estimated 2019 population of 524,989 to grow by another 137,294 4
| Invest: Philadelphia 2021 | CHESTER COUNTY
residents to 662,283 by 2045, making Chester County among the fastest-growing counties in southeastern Pennsylvania. Located within a short commute to both Philadelphia and Wilmington, the county offers road and rail proximity to New York and Washington, D.C. For this reason, a high proportion of residents work in professional occupations with a high median income of almost $100,000 – far above the U.S. median by approximately $31,000. But the county itself also provides solid employment opportunities, with an equal number of people commuting both into and out of Chester County. Median home values in Chester County climbed to $375,000 in 2020, which exceeds the U.S. average of $217,500 as well as the state average of $180,200. The county also remained resilient throughout the pandemic. Economically, Chester County has been rated within the highest Triple-A classification by the three main ratings agencies, Moody’s, Fitch and S&P Global, for the last 12 years. This was reaffirmed in December. The accolade places it in the top 2% of counties in the United States and allows the county to access debt at lower interest rates due to its financial strengths. ( )
CHESTER COUNTY INTERVIEW
Targeting tech Environment is ripe for technology growth but training local talent is a necessity
Marian Moskowitz Commissioners’ Chair – Chester County
In which sectors would you like to see more growth in Chester County? I would like to see more technology growth in Chester County; we’re ripe for it. We have very close relationships with our universities. West Chester, Immaculata and Lincoln University are in our backyard. We have other universities, community colleges and STEM schools throughout the county. One struggle is getting local talent trained for technology jobs. We’re thrilled that Mphasis has chosen Chester County to reside in. They are taking 1,000 employees from Vanguard and instead of taking those jobs out of the county, they’ll be setting up a permanent residence here. Those are the kind of things that help us build the future right, while still keeping our agricultural community, which is really important to us. Aside from COVID, what are the prevalent challenges you would like to see addressed? We would like to help municipalities with their stormwater management plans. We have a great comprehensive plan called Landscapes3, which stipulates our goals for things such as our open space, stormwater management, where we want to see the County grow and prosper. It’s going to be a year of repairing, restructuring and resolve. We are looking forward to the day when residents can feel good again, go out and visit shops, visit restaurants and see the beauty that Chester County has to offer. Everyone has struggled during the pandemic. Two key areas that we need to focus more resources on is drug and alcohol abuse and the mental health sector. We have to work on drug and alcohol abuse because that has become even more rampant during this time, given the despair and depression that people are feeling.
What is your general outlook for Chester County? First and foremost is the county budget. We’re focusing on zero-based budgeting for next year and outcome budgeting after that. We’re exploring those options because we do function differently. The end game for the Chester County government is that each department will function more efficiently. Economic development is also key. We’ve been working nonstop on transportation needs in the county and its overall improvement. One way we have started this initiative is by seeking to get trains and more diverse public transportation to the county seat, as well as the outskirts of the county. We recently partnered with Urban Outfitters, PennDot, the Governor’s Office and the Transportation Management Association of Chester County (TMACC) to get jobs to Coatesville where transportation has been a struggle. www.capitalanalyticsassociates.com
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Brenda Allen President Lincoln University
What were some highlights or major takeaways for the university in 2020? We’ve learned so much. The key takeaway for us is that we need to be nimble and flexible to make necessary adjustments. We also need to make sure we have priorities that guide those decisions. Those priorities for last year were ensuring we protected our staff and students. Another was maintaining continuity within our education. In June, when we reopened for the academic year, we made adjustments for the entire year. What are the main differentiators that set LU apart from the competition? As the first HBCU, we have a legacy of investing primarily in African American students, although we do have some racial diversity. We are a liberal arts institution, so we are small, and our goal is to offer our students the option to study any area that is of interest to them. For us, content is just a part of the education and we use this as a vehicle for honing the important skills required in the world of work. We focus on communication skills, problem solving, critical thinking and other skills that we build into our degree programs. The more I read about employer data, they are looking for those soft skills and do not tend to care what a potential employee’s major was. What changes do you expect in the education sector from the Biden administration? We’ve begun to see more interest in HBCUs and minority institutions over the last decade. I’m anticipating even more investment as this administration talks about social justice, including disparities. Much of the disparity we see along racial lines correlates to education, so it’s critical to make sure people of color have access to education. Many health disparities are based on the fact that people do not have access to knowledge on nutrition. We just received a $20 million gift from McKenzie Scott, which is a record, and we are seeing more and more of this recently. 6
| Invest: Philadelphia 2021 | CHESTER COUNTY
Chester County has a rich historical legacy, with a variety of offerings including the historic Hibernia Mansion.
( ) History Chester County was founded in 1682 by William Penn and played a vital role in many of the important battles of the revolutionary war, including the Battle of Brandywine, Battle of the Clouds and the Paoli Massacre. The first railroad was established through Chester County’s Great Valley, creating one of the first industrial corridors and commuter rail lines to urban jobs. The neighborhoods surrounding the Main Line remain among the most prestigious areas in the midAtlantic area thanks to this early development. The county has strong connections to Quakers and is home to a number of historical Quaker buildings and meeting houses. Kennett Square was an integral cog in the Underground Railroad, with dozens of Underground Railroad stations within an eight-mile radius of the borough. The Kennett Underground Railroad Center (KURC) was formed in 1998 to protect this heritage and abolitionist culture. Chester County’s historical growth is also rooted in its long-held status as an agricultural powerhouse. Not only does the county have mushrooms, Christmas tree nurseries, forestry, viticulture, orchards and vegetables but it also has strengths in crops, dairy, swine, poultry and egg production. It is also one of the most densely populated equine areas in the country.
CHESTER CONSTRUCTION COUNTY OVERVIEW
Paul Redman President & CEO Longwood Gardens
What is Longwood’s role in the community? Longwood’s role is as a community and cultural hub, a place for people to come, gather, be together, be inspired by nature and learn. We’re truly one of the finest horticultural display gardens in the world. The importance of Longwood and its indispensability was affirmed over this past year. When things were shut down, people couldn’t access places for families to gather. People couldn’t go to restaurants, museums, and so forth. Longwood has served as an outdoor space that is safe and beautiful. It has served as a community gathering place that is safe for families to connect. Longwood serves as an anchor in the beautiful oasis that Chester County is. Economy Chester County is home to 15,529 businesses that employ around 310,000 people, representing around 3.8% of Pennsylvania’s total jobs. Healthcare and social assistance provided around 15% of jobs in 2018, followed by retail at 11%, professional and technical services with 10% and finance and insurance at 8%. The majority of Chester County establishments are small and mediumsized enterprises (SMEs), with over 10,500 small businesses employing between two and nine people, while 16 businesses have 1,000 or more employees. From 2000 to 2018, Chester County saw significant job growth of over 20%, outpacing the national average and the state average. As of 2019, investment management firm The Vanguard Group was the largest employer, followed by home shopping channel QVC, the County of Chester and Chester County Hospital. Chester County’s GDP exceeded $45 million in 2019, which is more than double the $21 million recorded in 2001, according to St. Louis Federal Reserve data. As of 2018, the largest contributing industries to Chester County’s GDP were information, at 14%, professional, scientific and technical services, which provided 13%, real estate, contributing 12% and finance and insurance, with 10%. Manufacturing also provided 10% of GDP.
What is Longwood’s impact on the local economy? Prior to the pandemic, we were on track in 2020 to have one of our most successful and highly attended years ever. We were on track to have 1.6 million visitors. We have a $67 million operating budget and we’re getting ready to embark upon a $250 million capital expansion. Through our ongoing operations, our budget and with the indirect and ancillary impact that we’re having, we help to generate and support 2,600 jobs in the region, and we put $276 million back into the economy annually. That’s just our operations. The $250 million project alone is going to generate another 2,230 jobs, and it will put another $214 back into the community. How is Longwood involved in education? We were the first public garden in the world to deliver live, synchronous K-12 education programs. For eight years now, we’ve been doing the virtual learning that became so important when schools shut down. We were able to pivot and activate that entire platform on an entirely new level. That outreach is free. These programs are not only helping students achieve the science, technology, engineering, math and arts curriculum requirements they need, but are also serving as an introduction to careers working with plants. www.capitalanalyticsassociates.com
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CHESTER COUNTY OVERVIEW
Peter Urscheler Mayor – Borough of Phoenixville
Phoenixville as a community has weathered the pandemic storm. Although not fully out of it, we’re one of the few communities that has never had an interruption in meal service to our students, nor to our senior citizens. We started monitoring COVID in December 2019. Although we’re a borough and have a smaller governmental organization, we actually started monitoring this in conjunction with our hospital, superintendent and office of emergency management. In March, we implemented everything very quickly. We were blown away by the level of cooperation in our community from our nonprofit and business partners, and really just everyone in our community.
Despite the COVID-19 pandemic, Chester County government’s operating budget for 2021 dipped just slightly, with $513.2 million budgeted for expenditures in 2021 compared with almost $553 million in 2020. The county has also seen an increase in its capital investment program to $91 million from $73 million in 2020, targeting open space preservation, community revitalization, development of parks and trails and investment in libraries. COVID challenges The County is one of just six in the Commonwealth of Pennsylvania that has its own Health Department, which was crucial in its response to the pandemic and the public health support it brought to residents, businesses, education partners and all other community organizations. The Health Department also supported neighboring Delaware County in its response to COVID-19. When COVID-19 hit Pennsylvania, the Chester County government was quick to implement its “Continuity of Operations” plan, ensuring essential services remained, while many county services continued remotely. The County-owned long-term care facility, youth center and prison enacted swift mitigation measures, taking guidance from the County’s health department officials. The County followed the state’s stay-at-home order and additional lock-down measures, and the Commissioners came together with the County’s economic development and business leaders to provide support to business owners and organizations that were immediately impacted by the lockdown. 8
| Invest: Philadelphia 2021 | CHESTER COUNTY
Chester County’s 2021 operating budget dipped just slightly from 2020, to $513 million from $553 million In April, the Chester County Commissioners announced the formation of a COVID-19 Business Task Force, whose aim was to support county businesses and the economy in the short, medium, and eventually long-term. One month later, the County launched “Restore Chester County,” a comprehensive online toolkit offering guidance to individuals and businesses throughout the COVID-19 reopening process. Several webinars were held on the platform, including employment and training opportunities, mortgage and rent relief updates and ways to navigate the reopening process. Phase one of the economic recovery plan focused on short-term strategies for 21 key industry sectors using feedback from industry leaders. Phase two encompassed a more long-term recovery and evaluating how businesses could rebound from the effects of the pandemic. Throughout the rest of 2020, the County Commissioners made available a range of funding that
CHESTER CONSTRUCTION COUNTY OVERVIEW
benefited businesses, organizations and individuals across Chester County. As early as June, grants of up to $25,000 were awarded to 248 Chester County small businesses through the Main Street Preservation Grant Program, with a total of $5 million awarded. During the second funding round in February 2021, a further $10 million was awarded to 333 small businesses in grants ranging between $20,000 and $49,500. The Commissioners also provided $3.5 million in pandemic relief to nonprofits through the Restore Chester County Nonprofit Innovation & Resiliency Fund, and $15 million was provided to alleviate the burden of childcare during the pandemic. In September, $1.8 million was provided in CARES Act funding to prevent evictions and provide rental assistance, with payment made within 48 hours of documentation being submitted. The $10 million Public School Grant Program, which went to all the public-school districts in Chester County, allowed the schools within the 12 districts to comply with COVID-19 public health measures. Ninety-eight businesses received zero-interest loans through the PA COVID-19 Working Capital Access Program (CWCA) with over $7 million allocated to small businesses in the county. Seedcopa also assisted six partner banks in processing 557 applications to the Paycheck Protection Program and Seedcopa also approved loan deferrals for all borrowers. Throughout the pandemic, Chester County has continued to focus on community revitalization. In September five Chester County urban centers received more than $2.3 million in grants from Chester County’s Community Revitalization Program (CRP) and a further $5.6 million was invested in October, primarily on three new affordable housing developments. Since 2002, the Chester County Commissioners have awarded more than $70 million in funding for urban center improvements and upgrades, which include Chester County’s 15 boroughs and the City of Coatesville. By leveraging these investments, including water and sewer system upgrades, stormwater management, roadway improvements and streetscaping, the urban centers are able to accommodate future growth and see a rise in home values. The county is not only supporting the community monetarily but also through public policy measures. In July, the county expanded virtual services for jobseekers and businesses. Given the disruption of the pandemic on the job market, the PA CareerLink Chester County Site opened for limited on-site services, including use of the Computer Resource ( )
Joel Frank Chairman & Managing Partner Lamb McErlane, PC Attorneys at Law
What lessons did you take away from 2020? 2020 was actually our best year ever despite all of the impediments and roadblocks. Understandably, there were certain departments that were down, such as personal injury and criminal. However, other departments, such as litigation and employment, were off the charts. We were fortunate to continue to grow and it was a very productive year overall. We were even able to successfully consummate a merger with a fiveattorney Newtown Square firm. We think that there will be an uptick in work in 2021 with the pent-up demand when clients and the business community get up and running at full speed again. How do you continue to differentiate your firm in a crowded marketplace? We clearly are a unique suburban practice with a diverse client base, ranging from mom and pop shops and startups to Fortune 100 companies. We’re the largest firm headquartered in Chester County, with 42 lawyers. We can legitimately hold ourselves out as a full-service firm. The only primary practice areas that we do not delve into are intellectual property and immigration law. We’re also deeply integrated into the community, participating on numerous charitable, philanthropic, business and governmental boards across the county and in the region overall. Giving back to the community is an important part of being a lawyer, both financially and perhaps more importantly with one’s time. What is your near-term outlook? We remain highly optimistic and upbeat. Our pipeline is strong, especially in the litigation and M&A practices. We try to be conservative in our projections because we’re still uncertain about what is going to ultimately happen with the virus and the vaccine. I’m happy to say that despite the mandated COVID-19 protocols, we were able to pay everyone their full salary on the normal schedule and even provide significant bonuses at the end of the year as well. www.capitalanalyticsassociates.com
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®
oundtable:
Goals and opportunities Chester County leaders provide their outlook for 2021, discussing their priorities and goals and where the opportunities lie.
Josh Maxwell Commissioner Chester County
What have been some recent initiatives to boost the Chester County community? We’ve created an ethics policy and a diversity and inclusion board for our County government. We have over 2,000 employees, and we want to make sure we’re providing opportunities across all backgrounds. We’ve also been providing corporate relief grants. We’re up to $15 million in grants to businesses along with $15 million for childcare to ensure parents can get to work despite restricted daycare space. We’ve also been investing in affordable housing, creating six more affordable housing projects throughout the county. This includes $1.2 million for affordable housing in the center of the County. What are your top priorities for the near term? We’re always pushing to become a stronger, more efficient government and searching for ways to reinvent what we do. We’re also looking to further improve our already solid financial situation, specifically our budget process. We want to make sure we’re utilizing taxpayer dollars in the most efficient and effective ways possible. One aspect of this is looking at the space we need for our county government in a transforming work environment. A lot of our buildings were built decades ago and many were designed thinking people would be spending 40 hours a week in the office. With the new work environment as a result of the pandemic, we need to reevaluate our space needs to ensure we’re most efficiently using taxpayer dollars. This is the year we’re going to open up the budget and start looking at every dollar, making sure it’s being invested wisely. 10
| Invest: Philadelphia 2021 | CHESTER COUNTY
Michelle Kichline Commissioner Chester County
What role will inter-institutional and business cooperation play in the post-pandemic landscape? Chester County enjoys a long-standing tradition of collaboration, with a track record of public-private partnerships. We also have a robust nonprofit sector. Moving forward, it will be more important than ever to establish cooperation mechanisms among the different stakeholders that push our economy and community forward. We are looking to partner with small local businesses, whose successes will attract other businesses to set up shop here. Our COVID-19 Business Task Force is called upon to play a major role in that effort. Parallel to our robust financial services and biopharma sectors, Chester County has been a launching pad for several information and technology companies, coupled with intellectual-property firms. In 2018, we officially launched a program called Venture Chesco, in which we partnered with Ben Franklin Technology Partners to fund venture startups and small businesses as long as they locate and grow in Chester County. In turn, this fosters the intellectual capital of young, small businesses, which are critical to us. What are Chester County’s top priorities in 2021? Our top priority, in collaboration with our health department, is to ensure the health and success of our residents. Protection from the virus is certainly critical, but so is the health of our businesses. We’re putting tremendous effort into “Restore Chester County” and our COVID-19 Business Task Force. We will continue to implement the same prudent fiscal management that we always have. We remain optimistic.
CHESTER COUNTY ROUNDTABLE
Susan Hamley
Executive Director Chester County Conference & Visitors Bureau
What have been the biggest takeaways for Chester County Conference & Visitors Bureau this past year? I think one of the most significant takeaways is the old adage, “no man is an island.” I’ve always been an advocate for collaboration but this environment proved the absolute necessity of it. Our regional destination marketing organizations in Chester, Bucks, Delaware and Montgomery counties and Philadelphia, including the airport and the convention center, brainstormed recovery strategies together from the very start of the pandemic. As a side benefit, I think we also lifted each other up when we didn’t know exactly what we were facing. Together, we have greater impact and reach and a louder voice in the marketplace. Plus, we can be more efficient. How are you working to help the tourism sector rebound from the pandemc? We do know from research that leisure is going to drive tourism. We are 100% funded by a lodging room tax, so we’re pragmatic in how we spend those reduced dollars. We’re conserving in 1Q21 to be prepared for a more robust recovery when visitors are listening more and ready to travel. In the last part of 2020, we were awarded a block grant from the Chester County Commissioners’ office. With that, we did a multipronged campaign. One was hyper-local, supporting our restaurants and other small businesses. The second campaign was Magical Moments Await, centered on our biggest draw – Longwood Gardens – but inspiring future visitors with our full offering of Chester County gems they can experience here.
Brian O’Leary
Executive Director Chester County Planning Commission
What would you identify as the county’s primary challenges for 2021? Fully recovering from the pandemic will be the county’s primary challenge in 2021, including getting people vaccinated. Urban centers will be a continuing focus for us, specifically assisting downtowns and distressed businesses. Many of our downtowns are vibrant restaurant destinations, such as West Chester, Phoenixville, Kennett Square and Malvern. In 2020, a number of those communities worked with PennDot to close streets and expand outdoor dining, which was critical during the pandemic. The county is continuing to provide grants to these small businesses. Having a strong workforce remains critical for the county’s overall economy. It will continue to be so as we have a great, highly educated workforce, but some businesses are having trouble getting the workers they need with the correct training. The county’s Workforce Investment Board helps with this training. What are the Planning Commission’s 2021 priorities? We will be taking more of an economic focus during this year. First, we will redo our analysis of the county economy and update it. We also want to identify redevelopment opportunities and provide guidance on how places can be redeveloped. On the housing front, which is critical for economic development, we want to have housing that is attractive and fits in, is affordably priced, in the right location, aging friendly, and adaptable. During the year, we’re going to be looking closely at missing middle housing to see how we can get more of those assets. www.capitalanalyticsassociates.com
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CHESTER COUNTY OVERVIEW
Gary Smith President & CEO – Chester County Economic Development Council
There is optimism in the market as people are starting to see an increasing proportion of the population getting vaccinated. We remain completely engaged in helping the most fragile parts of our economy, those businesses that have been very much negatively impacted by the pandemic. The base of the recovery efforts is built into the design of Restore Chester County and the 21 industry clusters, which include some exciting opportunities. The good news is that Chester County has some very strong economic indicators: it is the 10th-wealthiest county in the country; has the fastest-growing and highest median income in Pennsylvania, and we are a Triple A-rated county that has enjoyed good management over the years. Though these factors have historically been economic pluses, we are also aware that there are pockets of need in any community that need to be addressed.
( ) Center and on-site educational assessments. Chester County also launched the Simple Ask: Wear a Mask Campaign to support local businesses by providing signage, social media toolkits, branded masks and other PPE items. The County Commissioners launched a social media and marketing campaign as well as offering grants totaling $150,000 to eligible chambers of commerce, to allow them to support local businesses in the effort. Infrastructure projects Over the last year or so, several major infrastructure projects, focused on road, rail and public transit have been completed in Chester County. At the end of 2019, SEPTA, Amtrak and state and local officials announced the completion of the Paoli Station Accessibility Improvements Project, a $48 million plan to improve operations. Station enhancements made by Amtrak included a new platform, new elevators and a pedestrian overpass. Shortly after, the county celebrated the completion by PennDOT of the final phase of the US202 improvement project, including rehabilitation of two bridges over Amtrak rail lines in West Whiteland and East Whiteland townships. And at the beginning of 2020, SEPTA inaugurated the newly modernized Exton Station on the Paoli/Thorndale Regional Line. The funding was received from Transportation Bill 89 signed into law in 2013 by then-Gov. Tom Corbett and improvements included new high-level platforms, covered bicycle parking, extension of the parking lot, 12
| Invest: Philadelphia 2021 | CHESTER COUNTY
At the start of 2020, SEPTA innuagurated the modernized Exton Station installation of a stormwater management system and platform lighting and signage upgrades. Significant improvements in Coatesville – Chester County’s only city – can be seen in the new train station initiative, with investment coming from Amtrak, a commitment to extend train service to the city by SEPTA, and $1 million in funding provided by the County Commissioners for a parking garage adjacent to the station. The US-422 between Chester and Montgomery counties is also undergoing several improvements, which include Schuylkill River crossings, rail crossings and improvements to facilitate multimodal transport. PennDOT is also designing projects to reconstruct US-1, with construction bids expected to open in 2023 through 80% federal and 20% state funding. A series of improvements are in the design stage for the US-30 to upgrade the Coatesville-Downingtown bypass.
CHESTER COUNTY OVERVIEW
Chester County is extremely active in land preservation, and for this reason, it boasts 142,000 acres of permanently protected land — nearly 30% of the county’s land area. As entertainment facilities closed during the pandemic, and many viable activities that comply with social distancing focus around the outdoors, Chester County was, and remains, wellpositioned with its extensive network of parks, trails and green areas. The Chester Valley Trail is 14.7 miles in length with over 13.5 miles open for use within Chester County. The county is actively working on an extension that would see the trail run an extra seven miles to the west into Downingtown. Montgomery County is also constructing an extension of the trail to the east into Norristown to provide a connection to the Schuylkill River Trail. When the Schuylkill River trail is completed in Chester County, it will run parallel to the river for 10 miles from Phoenixville to Pottstown. Right now, 5.75 miles of trail are open in Chester County. Key sectors Chester County has several key sectors that contribute to its economy. Namely, Life Sciences, Information Technology, Entrepreneurship & Management, Agri-
culture, Tourism & Entertainment, Banking & Finance, Manufacturing, Education and Healthcare. The county is once again seeing growth in the Life Sciences sector, which includes biotechnology and pharmaceutical research, development, manufacturing and distribution firms, after employment declines in prior years. Chester County is home to 7,114 life sciences employees. The county’s location quotient of 3.16, coupled with the burgeoning Route 202 high tech corridor, means it is often at the top of the list for companies looking to locate lab space in the region. Some of the life science focused companies that currently call Chester County home include Life Sciences Pennsylvania, Teva Pharmaceutical Industries and West Pharmaceutical Services. Named the Top Tech Hub in Pennsylvania, there are a high concentration of technology companies settled in Chester County. As a result, Information Technology has been a key economic driver. Total employment in the IT industry in Chester County is 13,629 as of 2018 and the location quotient is 1.77. This allows the county to compete nationally to attract technology companies. Bentley Systems, QVC, and Infosys are a few of the technology-focused companies that have a significant
CHESTER COUNTY OVERVIEW
presence in the county. Software publishing is also experiencing massive growth, more than doubling its number of jobs to 2,303 from 2015 to 2018. Entrepreneurial spirit is extremely high in Chester County and Management roles account for around 4% of jobs in the county, employing 9,134 people. The location quotient of 2.27 exceeds any other nearby Pennsylvania County as well as the Pennsylvania average of 1.3. The average annual wage provided by these professions is $178,554, well above the national and even the Chester County average. With its rich history of farming and swathes of protected land, it is no surprise Agriculture is one of the top industries in the county. With temperate climates and rich, fertile soil, the county remains in second place of Pennsylvania’s 67 counties in terms of value of agricultural products sold. Over half of the mushrooms produced in the United States are grown in Chester County. Agriculture and food production is one of the biggest job creators, providing over 10,000 jobs in 2018. While one of the major industries to suffer under the COVID-19 pandemic, as of 2018, Tourism & Entertainment was among the most buoyant economic sectors in Chester County. Philadelphia, as a convention and tourism and entertainment hub, leads the region in this sector with 77,000 jobs but Chester County has seen huge growth with 24,809 jobs as of 2018. Major attractions and historical sites include Longwood Gardens, the Brandywine Battlefield, the Paoli Battlefield, the Valley Forge National Historical Park and St. Peter’s Village. It is also host to the Devon Horse Show. With many of the major Banking and Finance institutions having set up roots in Philadelphia as one of the country’s financial centers, the overspill has created over 23,000 jobs in Chester County. Some of
Chester County ranks second in Pennsylvania in value of agricultural products sold the prominent financial institutions with a presence in the county include Citadel Credit Union, TD Bank, PNC Bank, De Lage Landen Financial Services and US Investment Corp. The location quotient of 1.83 is high compared to the national average and it outpaces neighboring counties. Investment management firm Vanguard is Chester County’s largest employer, and is the home of the company’s world headquarters, in this segment with over 8,000 employees. The original home of the nation’s iron industry, Chester County has retained much of its early Manufacturing expertise. Providing around 18,900 jobs pre-COVID, due to negative manufacturing trends countrywide pre-pandemic the sector has experienced some contraction. Feeding into all this economic growth is Chester County’s top-ranked Education offering. The county is home to a range of prestigious educational institutions. Its 12 public school districts contain 60 elementary schools, 19 middle schools and 17 high schools. Some
Doug Claffey Founder – Energage
For all of us, 2020 is a year we were happy to say goodbye to. But 2021 is starting strong, and I see us back on a growth path. In terms of our focus, which is helping companies generate employee engagement, we’re going to continue to press on to achieve our purpose of making the world a better place to work together. Our silver lining is seeing the effects of what we do, whether it’s giving employees a voice, sharing data that helps leaders improve the employee experience, or recognizing people-first organizations through our annual and quarterly awards,
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| Invest: Philadelphia 2021 | CHESTER COUNTY
CHESTER COUNTY OVERVIEW
Hubert Ho Chief Operating Officer – 8BioMed
As a venture company in biotech, we have to be agile and flexible. COVID triggered some uncertainties and difficulties, forcing us to slow down. But we took this opportunity to launch our 8HUB incubator to make use of our surplus resources and reserved space. The decision was timely as we noticed that other venture companies were looking at adjusting their plans to become COVID-resilient, therefore creating demand, and we are in the position to meet their needs. Furthermore, this pandemic-triggered slowdown also presented us the opportunity to re-evaluate our plan as we switched gears. Thanks to our 8HUB incubator initiatives, we started to connect to a greater variety of companies in the area, allowing us the opportunity to identify valuable synergy potentials and collaboration partnerships despite the physical limitations. This demonstrates not only that a crisis could evolve into opportunities but also the dynamic environment and resourcefulness the region offers. of the public schools in the county are nationally recognized, award-winning schools, one of which is the Downtown STEM Academy. There are 95 private, early childhood education schools, 20 private high schools, 18 charter and online schools, three technical college high school campuses and six colleges and universities. Notable higher education institutions include Lincoln University, Cheyney University, West Chester University, Immaculata University and Penn State Great Valley. The sector employed 12,689 people pre-COVID. One of the most critical sectors in the last year, the healthcare industry is also the largest employer in Chester County with almost 29,000 employees, and there are many opportunities for the county to capitalize on its geographical proximity to the metropolitan area. National and industrial trends are also supporting growth in the sector. Looking ahead Chester County’s economy is diversified among a number of key industries. As a result of the pandemic, the county’s economic growth was disrupted but it was largely insulated from large-scale damage by its strong economy and a local government that understands the importance of protecting local businesses. Restore Chester County has provided a lifeline to the community in terms of grants, training and support during the pandemic. And the county’s VISTA 2025
economic development strategy includes both the public and private sectors in the long-term growth of Chester County so that it continues to be an attractive place to live for its residents. Not only this, but emphasis is being placed on longterm economic strategies related to climate change and diversity and inclusion. In February 2021, the Chester County Planning Commission, in partnership with the Chester County Environmental and Energy Advisory Board, held a virtual public meeting on the county’s Climate Action Plan, and a draft plan has since been made available. The Chester County Commissioners and the Chester County Economic Development Council are also taking steps to focus on diversity, inclusion and equity within county government and the county’s business community. While challenges remain, in particular as the pandemic continues, Chester County is a bright spot in the region, focusing on its economic diversity to ensure it remains a leading destination for individuals and companies.
Capital Analytics would like to thank Chester County for its contributions in compiling this chapter. To learn more, visit its website at: www.chesco.org
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