1 22 15 centre county gazette cbicc

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GAZETTE THE CENTRE COUNTY

Showcasing Centre County January 2015

Effectively marketing Centre County and its unique assets is an important component of business recruitment efforts.


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GAZETTE THE CENTRE COUNTY

5 — Economic development marketing key to raising awareness of Centre County brand

403 S. Allen St., State College, PA 16801 Phone: (814) 238-5051 • Fax: (814) 238-3415 www.CentreCountyGazette.com PUBLISHER Rob Schmidt

MANAGING EDITOR Chris Morelli

STAFF WRITER Brittany Svoboda

BUSINESS MANAGER Aimee Aiello

SALES MANAGER Don Bedell

AD COORDINATOR Katie Myers

ADVERTISING CONSULTANTS Amy Ansari, Vicki Gillette

GRAPHIC DESIGN Beth Wood ADMINISTRATIVE ASSISTANT Kristin Blades

CONTACT US: To submit news: editor@centrecountygazette.com Advertising: sales@centrecountygazette.com The Gazette is a weekly newspaper serving Centre County and is published by Indiana Printing and Publishing Company. Reproduction of any portion of any issue is not permitted without written permission. The publisher reserves the right to edit or reject any advertisement for any reason.

7 — Coordinated effort underway to promote I-99 Innovation Corridor for development 8 — CBICC partners with DCED to give county presence at international plastics expo 11 — PSU challenge seeks to engage smaller businesses in additive manufacturing technology 13 — In-house 3D printing essential to product development at Actuated Medical 14 — Keystone Innovation Zone improvements helping area businesses

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A message from the CBICC

Officers

Welcome to this edition of front + Centre. We hope that over the past year, front + Centre has provided you with valuable insights into the Chamber of Business & Industry of Centre County’s efforts to create a healthier private sector and a more balanced local economy. For much of 2014, the Chamber’s focus was on preparing the community as a whole for economic development projects. Business recruitment is a component of the Chamber’s three-pronged economic development strategy that also includes entrepreneurial VERN SQUIER development and business retention expansion. Our plan for robust recruitment activity is an effort to bring new jobs and wealth into the county, which will ultimately strengthen the existing business base and create a more well-rounded local economy. Thoughtful economic growth is also critical to retaining young pro- TED MCDOWELL fessionals, and to creating job opportunities for trailing spouses, a significant factor in the recruitment of physicians and university faculty. Many of the following articles highlight steps the CBICC is taking to promote the county and its extraordinary assets that make the area an attractive business destination, targeting industries that are good fits for the community, such as high technology, advanced manufacturing, Marcellus staging or professional back office. Working with our membership and our public/private Centre County Economic Development Partnership supporters, the Chamber is making important strides forward to position the Centre County economy for a brighter future. Sincerely, Vern Squier, CCE President and CEO Chamber of Business & Industry of Centre County Ted McDowell Senior Vice President, AmeriServ Bank CBICC Board Chairman 4 | January 2015

President/CEO Vern Squier, CBICC Chair Ted McDowell, AmeriServ Bank Vice Chair William Joseph, First National Bank Secretary David Gray, Penn State University Treasurer Brad Scovill, Kish Bank

Board of Directors

Tim Boyde .......................... Centre County Government Steve Brown .................................. Mount Nittany Health Betsy Dupuis .............................................. Babst Calland Tom Fountaine ........................... State College Borough O.J. Johnston .................................................. Consultant Leanne Martin .................................................. M&T Bank Mark Morath .......... Hospitality Asset Management Co. Lee Myers ........................................................... Geisinger Robert O’Donnell ... State College Area School District Michael Schaul ..................................... The WHM Group John Sepp .................................. Penn Terra Engineering

Ex Officio Members

David Capperella ......................... Capperella Furniture Fred Leoniak ..................................................... Baker Tilly Cristin Long ........... McQuaide Blasko, Attorneys at Law

Chamber Staff

Vern Squier, CCE, President and CEO Lesley Kistner, Communications Director Mary Resides, Economic Development Support Liisa Bartges, Administration and Events Shannon Brace, General Membership Chamber of Business & Industry of Centre County 200 Innovation Blvd., Ste. 150 State College, PA 16803-6602 (814) 234-1829 Fax: (814) 234-5869 Email: lkistner@cbicc.org Website: www.cbicc.org Published by The Centre County Gazette 403 S. Allen St. State College, PA 16801-5252 (814) 238-5051; (800) 326-9584 Fax: (814) 238-3415 E-mail: rschmidt@barashmedia.com Website: www.centrecountygazette.com

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Economic development marketing key to raising awareness of Centre County brand Increased activity with state will help position area for new opportunities By LESLEY KISTNER As part of its robust economic development activity in 2015, the Chamber of Business & Industry of Centre County /Centre County Industrial Development Corporation plans increased commitment with the state Department of Community and Economic Development (DCED) to market Centre County and the region as an attractive destination for business relocation and new business investment. This outward approach to marketing is critical to raising brand awareness, according to Steve Kratz, DCED Communications Director. “Simply having a strong and effective presence at conferences and trade shows generates a buzz that Pennsylvania is at the forefront of economic development,” he said. CBICC/CCIDC President and CEO Vern Squier said generating that same level of enthusiasm for Centre County is the goal of the Chamber’s decision to partner with the state this year on targeted industry expos [the first being the International Plastics Expo in March (see related article on page 9], as well as continuing its own independent interactions with site selectors. “We want to take our business recruitment efforts to the next level, to increase awareness about the assets that the county and the region have to offer companies that are considering locating here,” Squier said. “We have been

Pennsylvania pavilion at a typical industry showcase.

proactive, and the state is telling us that Centre County is on the radar. We’ve worked hard. We’ve earned that. We want to continue that momentum in the highly competitive business recruitment arena.” Because of the intense competition for economic development projects, DCED’s Kratz stressed that it is also important to take full advantage of the opportunities associ-

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ated with these conferences and trade shows. “For instance, while at the (recent) Global Plastics Summit in Chicago, DCED and its partners hosted a luncheon with site consultants, conducted private meetings with site consultant and tax firms, and met with global companies with operations in Pennsylvania to discuss potential retention and expansion projects,” he explained. Kratz pointed out that maximizing marketing resources also requires the need to be selective in order to ensure a positive cost/benefit. One key initiative DCED conducted in partnership with Team Pennsylvania Foundation was to research and develop an intensive analysis of the state’s economic capabilities, and to identify and target specific industry sectors that aligned with the state’s strengths and opportunities. “This analysis provided the framework to determine which conferences and trade shows would provide the strongest return on investment,” Kratz said. “Additionally, input from our valued partners regarding participation interest or past participation experiences is taken under consideration.” Squier said the Chamber is taking a similar approach by targeting industries that would be good fits for the community. For Centre County, those industries might include professional back office, high-tech, Marcellus staging and additive manufacturing.

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A partner booth inside the PA Pavilion at an industry show.

With the state and Centre County sharing a goal of successful economic development marketing, DCED Executive Director of Marketing Deb Bowman said the continued collaboration of DCED, Team Pennsylvania Foundation and local and regional economic development partners, such as the CBICC, is essential. “Statewide marketing initiatives build a solid foundation for the state’s overall economic development efforts. It inspires the establishment of a strong brand identity with Pennsylvania. Built to Advance and a mantra that all of the state’s economic development partners can rally around,” Bowman said. DCED Marketing Manager Mary Bethea added that DCED recognizes the great motivation to keep the momentum going and to competitively position the state as a place of opportunity for business. “While each region of Pennsylvania is competing for projects, everyone benefits from advancing the holistic view of Pennsylvania as a thriving, business-friendly environment,” she said. Bethea said the statewide marketing platform, along with the individual efforts of economic development partners around the Commonwealth, will continue to support the drive forward. “Through enhancing collaboration we can make great things happen and illustrate why Pennsylvania is built to advance.” For the CBICC, Squier said that effort entails embracing the assets that are being highlighted at the state level and tying them to the benefits and opportunities at the county level, while touting industry strengths. The hoped for end result: new jobs and wealth coming into the county, which will ultimately better support existing businesses and strengthen the local economy.

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Coordinated effort underway to promote I-99 Innovation Corridor for development Comprehensive marketing strategy aims to boost growth along corridor By LESLEY KISTNER Encompassing Centre, Blair and Bedford counties, the I-99 Innovation Corridor is home to Penn State University and numerous precision manufacturers, life science firms, technology-based companies and materials-related industries. Linking the cross-state corridors of I-80 and I-76, the I-99 Corridor is a university research center, supporting corporate America’s most essential need—its products, processes and people. In an effort to better promote business development opportunities throughout the Corridor, officials from the CBICC/CCIDC, Altoona-Blair County De-

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velopment Corporation and the Bedford County Development Authority are working together on a comprehensive marketing strategy for the region. The centerpiece of this marketing strategy is Pennsylvania’s I-99 Corridor Economic Development, a high-quality print publication that will be distributed to talent prospects, site selectors and key economic development and government partners. The print magazine—set

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to be available in late spring—will be accompanied by a companion website and digital version of the magazine viewable online and on mobile devices. CBICC President and CEO Vern Squier said the magazine and related components will be excellent tools to help promote the region’s industry strengths and sell Centre County and the I-99 Corridor as ideal places for businesses to locate, grow and expand. Squier said the I-99 Innovation Corridor offers a number of business location advantages. One of the most recognizable is Penn State University and its world-class research across many fields of study. “University leadership’s focus on economic development, the cutting-edge research occurring here and a dramatic improvement in the university’s intellectual property policy are all strong selling points that make the region attractive to business and industry,” he said. Bette Slayton, President and CEO of the Bedford County Development Authority, agrees.

“With the launch of this regional I-99 Corridor Economic Development publication, we are combining our efforts to showcase the unique strengths and diverse industries of all three counties.”

— Matt Fox, Marketing Manager for the Altoona-Blair County Development Corporation

“Accessing Penn State’s many resources has proven to be a major factor with the growth and expansion of Bedford County’s existing employers, ranging from small to internationally renowned companies,” said Slayton, adding that the county has a strong history in manufacturing along with a committed workforce, strategic location and availability of sites and buildings. Marty Marasco, President and CEO of the Altoona-Blair County Development Corporation, said the region has a long history of successful collaboration amongst the three counties, their businesses and Penn State University’s leading students, faculty and research. Beyond the tremendous value of the university, the Corridor offers Pennsylvania’s largest concentration of Keystone Innovation Zones (KIZ), specialized locations that provide tax credits to new and startup technology companies. Ten KIZ’s have been established along the I-99 Innovation Corridor. 8 | January 2015

Bette Slayton and Vern Squier promote the I-99 Corridor at a recent Penn State additive manufacturing forum.

The CCIDC coordinates management of the state-designated KIZs. The Corridor also offers numerous tax-free business locations called Keystone Opportunity Zones. KOZ’s are geographically defined areas with greatly reduced or often no tax burden for property owners, residents and businesses locating within a KOZ. “With the launch of this regional I-99 Corridor Economic Development publication, we are combining our efforts to showcase the unique strengths and diverse industries of all three counties,” said Matt Fox, Marketing Manager for the Altoona-Blair County Development Corporation. “Along with a soon to be re-launched website, Pennsylvania’s I-99 Corridor region is poised to take its marketing efforts to the next level to support local companies and attract new investment.” Fox said the website will provide information on available sites, buildings, financial resources, tax incentives, research grants and statistics to assist businesses in site evaluations. Squier said the marketing strategy for the Corridor will be a key part of the CBICC’s ongoing efforts to strengthen the local economy and achieve the goals of the 3B33 Initiative, which is a long-term revenue target of a private sector that generates $3 billion in annual economic output by 2033. “The I-99 Corridor magazine is an important step in our ongoing marketing efforts,” added Slayton. “This will be a great opportunity to showcase the many assets in our region.” Lesley Kistner is Communications Director for the Chamber of Business & Industry of Centre County.

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Centre County joins state DCED for presence at international plastics expo By LESLEY KISTNER Centre County will be in the spotlight at NPE2015: The International Plastics Showcase in Orlando, FL, when the CBICC/CCIDC serve as one of only six supporting presenters of the Pennsylvania Pavilion. In March 2015, more than 60,000 professionals from every spectrum of the plastics industry and markets, both nationally and internationally, will gather at the expo in order to discover new tools and access emerging technologies that are shaping the future of plastics. Recognized as the world’s largest plastics trade show and conference, the event brings together all sectors of the industry, including vertical and peripheral markets and end users. For the CBICC, partnering with DCED to have an elevated presence at the international expo is an opportunity to showcase the assets that Centre County has to offer the plastics industry.

“Partnering with DCED at the expo demonstrates our commitment to showcasing Centre County as a business location destination before national and international site selectors and industry leaders.”

— Vern Squier, CBICC/CCIDC President and CEO

CBICC/CCIDC President and CEO Vern Squier cited Penn State University’s leadership in 3D printing/additive manufacturing research as potentially promising to specific segments of the plastics industry. Penn State offers world-class expertise in polymer science, formulation, and engineering, in addition to extensive polymers processing capabilities, including fiber manufacturing, at University Park and Penn State Behrend. The university also boasts a broad range of 3D printing capabilities in polymer-based materials, and www.cbicc.org

active student design projects in polymer and metallic materials. In addition, the county’s strategic location to natural gas shale plays, particularly the Utica Shale, is of value to the plastics and rubber products industry, as is the low-cost energy available in Pennsylvania as a result of being the second largest producer of natural as in the United States. Pennsylvania ranks 5th in the country in both plastics shipment ($8.8 billion) and in value added to the plastics industry ($4.4 billion), according to the DCED. In addition, Shell Chemical LP recently announced that it was exercising its land-option agreement in Beaver County, an encouraging step forward in the construction of a major petrochemical facility there that could spur ancillary plastics industry growth throughout Pennsylvania. As a Pennsylvania Pavilion partner, the CBICC will have access to all leads generated, the ability to make press announcements within the Pavilion, abil-

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ity to display economic development literature, and will be included in all promotional activities associated with Pavilion activity, among other benefits. “Partnering with DCED at the expo demonstrates our commitment to showcasing Centre County as a business location destination before national and international site selectors and industry leaders,” Squier said. “We will continue to identify industries that would be a good fit for the county, and proactively work to make those critical connections.” Other sponsors of the PA Pavilion include the Pittsburgh Regional Alliance and Choose Greater Philadelphia. Greater engagement with state officials from the DCED and other statewide economic development partners, and identifying world-class opportunities to raise the county’s visibility to site selectors is a key component of the Chamber’s economic Development activities moving forward.

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PSU challenge seeks to engage smaller businesses in additive manufacturing technology By LESLEY KISTNER Additive manufacturing — or 3D printing, as it is commonly known — has the potential to revolutionize light manufacturing and many other fields — not to mention the home and kitchen as user-friendly consumer-grade machines gain in popularity — and strengthen the competitive advantage for companies developing new products to market. With the ramp up of additive manufacturing technology occurring across multiple industries, some of the major advances in metallic material 3D printing for land, air and space applications are taking place at Penn State University’s Center for Innovative Materials Processing through Direct Digital Deposition (CIMP-3D), generally regarded to be in the top three leading additive manufacturing centers in the nation.

“The America Makes Challenge is timely because the nation as a whole is just ascending the learning curve for metals additive manufacturing.”

— Dr. Richard Martukanitz, CIMP-3D Director

Through its partnership with America Makes—the nation’s leading and collaborative partner in additive manufacturing—researchers at CIMP-3D are bridging the gap between research and product development. An upcoming competition seeks to encourage smaller to medium sized companies (SMEs) to adopt the technology for use in their own operations. CIMP-3D Director Dr. Richard Martukanitz hopes that Centre County companies will be among the entities that submit proposals for the nationwide challenge. The America Makes Challenge for SMEs is expected to be formally announced next month. Once announced, applicants will have six weeks to eight weeks to submit “high-impact” proposals about their concept for additive manufacturing and how the technology would benefit their business. Martukanitz said four or five winning teams will receive $40,000 and the vast technical and enterprise resources of Penn State’s CIMP-3D to assist them in adopting the technology. The focus on small to medium sized enterprises is due to their importance to additive manufacturing technology. Martukanitz said about 98 percent of manufacturing firms

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within the United States fall into this category, and SMEs hold 10 times more patents than large businesses. They also form a strong second and third tier supply chain for larger organizations, as well as being naturally agile and responsive to market demands. “The America Makes Challenge is timely because the nation as a whole is just ascending the learning curve for metals additive manufacturing,” Martukanitz said. “However, smaller companies generally lag in advanced training in this type of manufacturing.” Another hurdle: additive manufacturing of metals tends to be capital intensive. Since most SMEs can’t afford huge risks, investments in product and market development for smaller businesses is usually focused within their comfort zone based on available resources. “A company might have a good idea and they would like to have it tested or demonstrated, but they don’t have the money to evaluate it and they don’t have experience in additive manufacturing, Martukanitz said. “The competition is an opportunity to receive free support from a vast network of experts.” For additional information about the challenge, contact Dr. Richard Martukanitz at rxm44@psu.edu, 814863-7282. CBICC President and CEO Vern Squier sees tremendous value in Penn State’s CIMP-3D facility beyond the benefits

of the SME Challenge. “Being close to the world-class research taking place at the university is a tremendous economic development asset,” Squier said, pointing out that additive manufacturing holds significant promise for the local economy. “With Penn State University’s status as the leading research institution for additive manufacturing/3D printing, Centre County has the potential to be an industry hub,” he said. Martukanitz added that PSU’s new Intellectual Property policy for industry-funded research is providing Penn State with a major competitive advantage over other universities. “As companies of all sizes try to separate the hype from the reality in additive manufacturing right now, Penn State offers the opportunity to learn that first-hand by working with the university through CIMP-3D without having to negotiate over who owns the IP,” he said. “From a business recruitment standpoint,” Squier stressed, “to be located where cutting-edge research is taking place; where advancements are being made, and to be close to the talent coming out of the university, is a strong selling point.”

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Penn State’s CIMP-3D is a leader in additive manufacturing research.

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In-house 3D printing essential to product development at Actuated Medical By LESLEY KISTNER Bellefonte-based Actuated Medical, Inc. has been turning innovation into commercial success since its founding in 2006 by CEO Maureen L. Mulvihill, Ph.D. and R&D Director Roger B. Bagwell, Ph.D. The medical device company focuses on stateof-the-art, minimally invasive instruments for clearing medical occlusions, penetrating tissue, and enabling the emerging MRI-guided surgical procedure industry. Actuated Medical began rapid prototyping inhouse in 2011, when it purchased its first 3D printer in an effort to fast track device development. The company has added three, more advanced machines since that time. Mulvihill said the overall savings to the company in both time and money is huge, as is the ability to get products to market more quickly. Those products include TubeClear®, an in-patient tube clearing system for feeding and decompression tubes, and GentleSharp™, a tool for low-force insertion of lancets and needles for more humane blood sampling. In fact, Mulvihill said rapid prototyping, along with lean manufacturing and innovation, are all key requirements to developing a medical device in today’s competitive market. “In just a few hours, our engineers can take a concept to a fully tested prototype,” Mulvihill said. “Pre-

viously, it would take several weeks to send a design to a machinist for fabrication then test it in our facility.” If the part wasn’t right as machined, or the engineer changed the concept, the process was further delayed. “It really extended the length of the development process,” Mulvihill said. With the addition of 3D printing capabilities, Actuated Medical’s engineers are able to design and create a part — or change or create a new prototype — in a matter of hours. Actuated Medical’s 3D printers serve another beneficial purpose as well — education. Mulvihill said the original machine is now used for demonstration purposes. The company partners with Discovery Space Children’s Museum in presenting a one-week summer camp in which children learn about medical devices, 3D printing, and can create their own objects using the technology. In addition, Bagwell takes the machine to Bellefonte Science Night and other activities within the Bellefonte School District so that students there can be introduced to 3D printing as well.

Actuated Medical introduces 3D printing to Bellefonte School District students.

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Keystone Innovation Zone improvements helping area businesses The state’s Keystone Innovation Zone program provides tax credits to new and start-up technology companies. Companies located in the tax zones that are in operation for less than eight years and fall under the industry sector focus are eligible to apply for state tax credits. In 2014, more than $17.1 million in KIZ Tax Credits were awarded by the Department of Community and Economic Development to 227 eligible companies throughout the state, an increase of about $2 million over 2013. In the I-99 Innovation Corridor KIZ, which includes Bedford, Blair and Centre counties, 14 companies were awarded more than $1.07 million in Pennsylvania tax credits, including eight companies receiving awards for the ďŹ rst time totaling $549,844. All but two of the 14 companies are located in Centre County. Available information dating back to 2008 shows that in the I-99 Innovation Corridor KIZ, 38 companies have been awarded more than $7.7 million through the KIZ Tax Credit Program. By comparison, the I-99 Innovation Corridor KIZ has a combined population of 327,839 out of the more than 12.8 million residents in Pennsylvania, or 2.6 percent. However, based on state KIZ Tax Credit award dollars, companies located in the I-99 Zone received 6.2 percent of the tax credits.

Regain Strength.

Additionally, serving as coordinator for the I-99 Innovation Corridor KIZ, the CBICC was successful in getting approval from DCED in December 2014 on a request to modify the zone’s footprint, adding 50 acres. Two sites are located in Centre County with three in Blair County. Established in 2004, the zone’s original footprint contained 965 acres. As a result of the recently approved modiďŹ cation, the total acreage is now more than 970 acres. While the increase of about 5 acres

CENTRE COUNTY KIZ TAX CREDIT AWARDS FOR 2014

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Innovation Park, a Centre County Keystone Innovation Zone

The following companies were awarded KIZ Tax Credits from the Department of Community and Economic Development: • Biomagnetic Solutions, LLC • Indigo Biosciences, Inc. • Chromatan, Inc. • Lasers for Innovative Solutions, LLC • M-Mech Defense, Inc. • Peconic, LLC • Piezo Energy, Inc. • PolyK Technologies, LLC • Actuated Medical, Inc. • SilcoTek Corporation • Prescient Weather, Ltd. • Quantum Vortex, Inc.

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seem slight, because of the application requirement of swapping out acreage no longer usable as KIZ, in reality about 43 acres were added in ďŹ ve different parcels located in the two counties. Blair County was able to swap out 34 acres in its I-99 Enterprise Campus because mature companies ineligible for KIZ beneďŹ ts now operate there. In return, the former Ben Secour Hospital Campus and Altoona-Blair County Airport were designated as KIZs, a combined total of 41 acres. Centre County was able to the include Torron Group property located adjacent to the Zetachron Incubator, part of the originally established Innova-

tion Corridor. Centre County also has three state-designated Keystone Opportunity Zones, which provide signiďŹ cant state and local tax beneďŹ ts for businesses locating within the zones. They include: Moshannon Valley Regional Business Park, with a designation through Dec. 31, 2017 Benner Commerce Park, with a designation through Dec. 31, 2022 Titan Energy Park, with a designation through Dec. 31, 2023. Population Source: Applied Geographic Solutions, 2014 at www.newPA.com

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©2015 Mount Nittany Health

Understanding what matters means Nicole can rely on her team of OB/GYN specialists to calm her worries, big or small. She can instead focus on what her son’s first words will be or if her daughter’s favorite flower will be the same as hers.

Your life. Our team. SCHEDULE AN APPOINTMENT WITH OUR TEAM: OB/GYN Mount Nittany Health – Park Avenue 1850 E. Park Ave., Ste. 301 State College, PA 16803 814.237.3470

16 | January 2015

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