ERIE
2015
Annual economic report | Sunday, February 15, 2015
INSIDE SECTION K:
! Lord Corp. a win for region. 4K ! DevelopErie status report. 5K ! Waterford snack factory already is looking to grow. 6K
INSIDE SECTION L:
! GE: Full steam ahead. 1L ! Area tourism growth evident. 2L ! Manufacturing going strong. 9L ! Region’s top employers. 10L
Potato chips pouring off conveyors at a snack food plant in Waterford are a visible sign of a comeback year in 2014. But they aren’t the only indication that our increasingly diverse economy is moving in the right direction. Challenges lie ahead, but statistics and stories suggest 2015 could be better than the year before.
INSIDE SECTION M:
! Immigrant business owner living the American dream. 1M ! Do we lack entrepreneurs? 2M ! Entrepreneurs’ stories. 2-5M
INSIDE SECTION N:
! Where the buffalo still roam. 1N ! Women hold key positions. 4-5N ! How the region gave back. 6N ! Big projects on the horizon. 8N
ERIE 2015
2K | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Where we’re
GOING
Erie’s bayfront continues to be a site for development. Below, from left: The return of snack making in Waterford was a success story of 2014; plastics manufacturing remains vital to the area’s economy; Presque Isle Downs & Casino is a tourist draw.
F
rom the darkest days of the recession and the slow recovery that followed, Erie County has regained more than 7,900 lost jobs. Karrie O’Connor’s job was one of them. The Wattsburg woman collected unemployment after the Troyer Farms plant where she had worked for more than a decade closed in 2011. Later, she earned money by baby-sitting and cleaning houses. It wasn’t until last summer that her luck finally changed. Today, she’s one of about 150 employees at Barrel O’ Fun Snack Foods Co. East in Waterford, where she and her fellow employees transform about a million pounds of raw potatoes into crunchy kettle chips each week. O’Connor, whose job title is seasoning specialist — she applies barbecue spice or whatever the recipe demands — saw her fortunes change in 2014 as she returned to full-time employment. Is it possible, we wonder, that the Erie economy as a whole might be on the verge of some sort of transition as well? It’s happened before. What began as a wilderness fishing and shipbuilding town eventually grew into a manufacturing center, a builderoflocomotives, a pioneer in plastics, a town that built plumbing fixtures, medical equipment and parts that helped keep planes in the sky. Much of that legacy lives on. But there are signs, it seems, that all this talk of a new economy, built not on one leg but several, might be taking shape.
By the numbers O’Connor’s new job, complete with benefits, is an example of how lives change when the economy improves. In 2014, five years after the recession ended in June 2009, one of the slowest recoveries in memory seemed at last to gain momentum. By December, the seasonally adjusted unemployment rate fell to 4.9 percent, a decline of 2 percentage points in one year. Some of those gains were made on large, public stages.
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We’re industry, and we’re tourism. We’re health care, education, plastics and more. Erie’s unique identity is vital to its success. P% S&7 7)KF&6 4 C-:H:?@0-'$0-:#;'#*;H3": GE Transportation called about 70 employees back to work. Lord Corp., which now has more than 850 Erie-based employees, made good on its promise to expand its workforce. And then there’s the 150 employees now making snacks in Waterford. Meanwhile, a combination of state, local and federal government added 1,000 jobs in Erie.
New blood More than ever, though, there’s growing concern that Erie has grown too dependent on those large, established employers. SterisCorp.,GAFMaterials Corp. and International Paper Co. have taught Erie painful lessons about what happens when key employers move away. Anumberofareagroups, led by the Innovation Collaborative, is concerned that local entrepreneurs aren’t laying the groundwork for the homegrown companies of the future. But in an unusual show of unity, local groups seem to be lining up to address concerns about both launching new businesses and finding employees for the existing ones. The Ben Franklin Partnership, all the local colleges, the Innovation Collaborative, the Erie Gaming Revenue Authority, the Athena Project, the Erie Technology Incubator and a long list of others all seem eager to play a role. In the view of John Buchna, chief executive of the Erie Downtown Partnership, the infrastructure to breed entrepreneurs is
in place. What’s missing, he said, is a can-do attitude, a conviction that Erie is a good place for bright young minds to gather and build a future. “Success often breeds success,” he said. “I would agree that there is a need for us to develop this spirit. It is the culture that exists in places like San Francisco. It is the culture that is starting to exist in places like Pittsburgh.”
Investing in Erie That search for a different culture stands to get a boost from continued efforts to revitalize Erie’s bayfront. Thelatestofthoseefforts can be seen in the preliminary work being done for a new200-roomCourtyardby Marriott. Ground has been broken for the $45 million hotel that will be built adjacent to a new $7.6 million parking garage. The bayfront isn’t the only spot in Erie County getting an upgrade. Some of the most conspicuous efforts to revitalize downtown Erie over the past couple years have come from Erie-based Erie Insurance, which followed up construction of a new parking garage in 2013 with construction in 2014 of a new Technical Learning Center. The months ahead will see a new building take shape at Knowledge Park and continued work on a new EMTA facility that couldcostupto$70million. Private investors also continue to invest in Erie. Tom Kennedy has built
Erie 2015 is the Erie TimesNews’ 16th annual report on Erie’s economy. The special report was coordinated by B"<J 5?01"<0, editor/news.
one Cobblestone Inn in Corry and has two more planned. Meanwhile, Scott Enterprises Inc., owner of Splash Lagoon Indoor Water Park and Peek’n Peak Resort near Findley Lake, N.Y., is eyeing what could be his company’s largest investment, a $150 million mixed-use project on the east bayfront. Paul Nelson, owner of Waldameer Park & Water World, isn’t eyeing anything. He’s moving ahead on a wave pool that should open in May.
What we do The most recent employment numbers tell us somethingaboutourselves. Erie remains a manufacturing town with more than 22,000 manufacturing jobs. That’s double the concentration of factory jobs for an average community of Erie’s size. Outsiders have called this a Rust Belt city. But Erie doesn’t fit so neatly into a single box. There’s no question that Erie is home to heavy industry. It doesn’t get much heavier than building ships and locomotives. Erie is also home to four colleges and a medical school, one of the nation’s largest insurance companies, a health-care and education sector that employs more than 28,000, and a booming tourist economy that helps to support more than 13,000 jobs. It used to be said that Erie was a town of corner bars and churches. There’s still truth to that. It’s also a community
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that’s home to a casino, a zoo, professional sports teams, leading educational programs in plastics engineering and intelligence studies, and a booming retail sector that draws shoppers from three states and two countries. There is strength in that diversity, said Jim Kurre, former director of the Economic Research Institute of Erie at Penn State Behrend’s Black School of Business. And it helps explain why, amid one of the worst recessions in our country’s history, the recession in Erie was nothing special. “Erie has seen worse,” he said.
Troubling trend The good news has been piling up like snow in February. The unemployment rate is down. Plunging gas prices have given most families more money to spend on other things. Even the cost of cooking and heating our homes has fallen, thanks to continued exploration and drilling the Marcellus and Utica shale formations But a pair of closely linked trends also bears watching. The size of Erie County’s civilian workforce, the number of people who are either working or actively looking for work, is shrinking, falling by 1,800 people in just the past year. At the same time, transfer payments — payments such as welfare payments or Social Security payments — account for an increasingly large share of total income in Erie.
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Blame it on an older population. Blame it on a higher rate of poverty. The city of Erie, after all, has the second highest rate among major Pennsylvania cities. The bottom line is that 24.4percent,nearlyafourth, ofallincomeinErie,comes from some sort of transfer payment. That’s 50 percent higherthanthenationalaverage. It’s also a dramatic increase from 1969, when just 8.7 percent came from transfer payments. It’s one thing, Kurre said, if those numbers are simply a function of an aging population. But if those numbers reflect a discouraged workforce, that’s cause for concern, he said.
Looking forward It’s hard to remember a time when more people were thinking about what Erie’s problems might be and how we can fix them. The Erie Chamber and Growth Partnership is trying to discover what positions employers are trying to fill. DestinationErieisworking to help the community advance its priorities. The Economic Research Institute of Erie is trying to find a way to measure our entrepreneurial activity. Scores of upstart business owners — people like Sarah Godwin, owner of Pure Parenting — are working to grow a business from little more than an idea and a lot of work. AndDevelopEriehelped broker a deal that found a new owner for an old potato chip plant. That’s how Karrie O’Connor got her job. Barbara Chaffee, president of the Chamber and Growth Partnership, understands the challenges. But she also has some insight into what’s being done to tackle them. And most importantly, she has some insight into the region and its people. “I believe it’s a region wherepeoplehavegritand a strong work ethic,” she said.“Havewereachedour full potential yet? No, but with the people who reside here and the people we want to attract here, we believe we can reach them.”
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 3K
Regionâ&#x20AC;&#x2122;s economic indicators A brief look at the state of Erie County and Crawford County.
Electric rates
Per capita income
Lower rates means homeowners have more cash.
The more we make, the more we spend
Penelec rates
Erie metropolitan area
$87.83 in February
$37,727 in 2013 *
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Unemployment
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Employment is one of the most important indicators of economic wellbeing.
The verdict:
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Natural gas rates As rates rise, homeowners spend less elsewhere.
The verdict:
Erie
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4.9%
Meadville
5>L? ';>@ $D$O !? in December 5)-D ,B.*
4.6%
Manufacturing employment
Erie County
Manufacturing remains a key employment sector.
in December
The verdict:
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22,100
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7,500
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Erie County
$61.42 in February
105,100
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in December
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in December
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Bankruptcies
Air travelers
Bankruptcy filings are an indicator of tough times.
People boarding planes at Erie International Airport is a reflection of business and leisure travel.
Western district of Pennsylvania
2,484
3rd quarter of 2014 0= ';>@ ,E,(* !? *;+ <6C;8); >' ,B.*
The verdict:
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National Fuel rates
The verdict:
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GE Transportation
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on Feb. 1, 2015
The verdict:
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Park visitors
Presque Isle State Park attendance
Visitors help drive local tourism.
3.76 million in 2014 0= CA>68 *,EBBB ';>@ ,B.*
The verdict:
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Erie International Airport
97,222 5>L? QE.., ';>@ ,B.*
The verdict:
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SOURCE: Pennsylvania Department of Labor and Industry; Erie International Airport; VisitErie; AAA; American Bankruptcy Institute; GE Transportation; National Fuel Gas Distribution Corp.; Penelec; Presque Isle State Park ERIE TIMES-NEWS file photos; JIM MARTIN and CHRIS SIGMUND/Erie Times-News
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ERIE 2015
4K | Erie Times-News | GoErie.com | Sunday, February 15, 2015
COMPANY OFFICIAL: ‘We expect our business to continue to grow here.’
An ‘amazing’ win
DevelopErie was leader in retaining Lord Corp.
Lord Corp.’s land deals After a three-year renovation, ,%( *130/2$'- 4!& #."( )1+2,$ employees now work in the former Bush Industries building in Summit Township. 4#H" 0#H!*/E :1,8$HJ !H#!JHC& 8C 5JEC :7CD <CHJJC 8%" =HJJ%F8H"J% ?#8" (8E E#;" C# =HJ8CJH BHAJ 9%"@ECHA8; -J>J;#!'J%C Corp. The property is being marketed as a commercial or industrial development.
By JIM MARTIN jim.martin@timesnews.com Lord Corp. never wanted to leave Erie, the company’s birthplace in 1924, said Will Hinkston, Lord’s vice president of global operations development. There were too many engineers who might not have followed the company to a new location, too many veteran employees whose experience might have been lost in the move. But for a time back in early 2011, the departure of this homegrown company seemed like a real possibility. In fact, Regina Smith, vice president of DevelopErie, who was working in a different role at the time, said many believed it was a foregone conclusion that Lord Corp. would move its Erie operations elsewhere. But that didn’t happen. In late 2014, the company put the finishing touches on a $100 million facility in Summit Township that merges locations on West 12th Street and West Grandview Boulevard. By some measures, retaining Lord and its 850 jobs in Erie County has to rank as one of DevelopErie and the local economic development com-
Lake Erie College of Osteopathic Medicine main campus E TY CI ERI OF
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FILE PHOTO ANDY COLWELL/Erie Times-News
over the years, emerge this time as the winner? As Hinkston sees it, Erie had the edge from the beginning. “Our first preference was always to remain in Erie,” he said. “We wanted to retain all those skilled employees.” But the company had space needs that had to be addressed. While the company’s space at 2000 W. Grandview Blvd. was showing its age, the real problem was at
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Contributed photo. SOURCES: Steve Pattison, director of Lord Corp.’s advanced process development; Millcreek Mall; LECOM; DevelopErie; Erie Times-News archives
Lord Corp. repairman Mark Briggs, of Wesleyville, inspects parts for an engine mount for a McDonnell Douglas MD-90 commercial aircraft at Lord’s new Summit Township facility, during a tour on Dec. 3. munity’s most substantial wins in years. Erie County Executive Kathy Dahlkemper called it an important victory, on par with bringing a major new employer into the region. “To keep the company here and have it grow here is amazing,” she said. “I don’t know if we can say enough about the impact it will have.” So how did Erie, which has a long list of factories moving to other locations
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CHRIS SIGMUND/Erie Times-News
the manufacturing facility at 1635 W. 12th St., a portion of which dates back to 1932. “We were growing as a company, and we were landlocked,” Hinkston said. “We had nowhere to go.” But Lord’s real estate broker did have an Eriearea location in mind. Bush Industries had acres of unused space at its warehouse on Robison Roadin Summit Township. DevelopErie would play the role of facilitator, help-
ing, for instance, to make the case publicly for Tax Increment Financing. If Lord made its decision solely on tax incentives, there’s little doubt Erie would have lost, Smith said. There were too many other states that could offer more, she said. What other locations couldn’t offer was a complete package of services that would include finding buyers for the company’s two Erie-area locations. Lord has sold its prop-
erty on West Grandview to Lake Erie College of Osteopathic Medicine. Meanwhile, the Greater Erie Industrial Development Corp., an affiliate of DevelopErie, bought the company’s 17-acre property on West 12th Street and is looking for a buyer. So what was it that kept Lord from accepting aggressive offers from both Ohio and North Carolina? “It was more than one
➤ Please see LORD, 5K
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 5K
DevelopErie’s standing Leaders of DevelopErie, Erie
County’s highly visible economic development organization, have taken pains to explain their new direction. Following the October resignation of John Elliott, the group’s former president, the DevelopErie board and Katrina Smith, the group’s new president, have staked out what they see as a more humble, collaborative approach to their work. “We don’t need to be the organization grabbing the headlines,” said Mark Denlinger, chairman of the DevelopErie
FILE PHOTO GREG WOHLFORD/Erie Times-News
board. DevelopErie leadership also has been clear on another point: Tight finances have the organization motivated to sell certain assets. So what does that mean for projects launched under Elliott’s leadership? Here’s a look at some of those initiatives and where they stand.
Setco Storage, at 1450 Walbridge Road in Harborcreek Township, is on property that DevelopErie had proposed for an intermodal terminal, part of the Erie Inland Port plan. Those plans were scuttled when the terminal faced opposition from the public.
THE PLAN: DevelopErie announced plans in 2013 to build, in partnership with Penn State Behrend, a new $16.5 million, 60,000-squarefoot building at Knowledge Park. STATUS: Construction is underway for what’s being called the Advanced Manufacturing and Innovation Center. Smith said the project will add to the more than 500 jobs already tied to Knowledge Park.
THE PLAN: The group had hoped to develop a site in Harborcreek Township for use as a rail terminal. Those plans were scuttled in the face of public opposition. STATUS: DevelopErie is operating the storage business located on the property. Smith said, “We are evaluating long-term options for the business as well as the property.”
THE PLAN: DevelopErie had hoped to bring an iron-processing plant to a site it owns near Cranesville in western Erie County. Thanks to access to rail, Great Lakes ports and large amounts of energy, the Erie County site was listed as a finalist for the project, which was projected to create hundreds of jobs. STATUS: Grand River Ironsands Inc., which was looking for a building site, is “stepping back and re-evaluating their needs,” Smith said. Efforts will be made to market the property, she added. Smith said her organization continues endorse the broad strokes of this plan, but it has to find a company that’s ready to build. THE PLAN: DevelopErie had hoped to develop a $32 million import-export facility on Erie’s east bayfront after the city’s planning commission agreed to designate 70 acres as blighted to qualify for tax incentives. STATUS: Nothing has materialized yet from efforts to market the location for bulk commodity use and for industries related to shale gas production. Smith said DevelopErie continuestolook forprospects.
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Lord: Company makes $100M investment in new facility Continued from 4K thing,” Smith said. “They didn’t know what they were going to do with the 12th Street location. It speaks to the reality that it took some collaboration. This organization worked
with the Governor’s Action Team and worked with local officials.” Together, she said, “We worked to close the gap. We are very proud of this.” Bob Glowacki, chairman of the Greater Erie Industrial Development Corp., a
DevelopErie affiliate, has seen other homegrown companies leave town. Lord, after all, moved its headquarters to North Carolina. But Glowacki isn’t losing sleep over the future of Lord in Erie County — not
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after the company’s $100 million investment in its new plant. “With the money they spent, they cannot move,” he said. “We’ve got them.” Hinkston doesn’t disagree. “This is a long-term in-
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vestment,” he said. “We expect our business to continue to grow here.” The gleaming new facility is designed, in part, to send a message to visiting customers, he said. He also hopes there’s a message for the local community.
“Hopefully we’ve demonstrated our commitment to Erie County,” he said.
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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6K | Erie Times-News | GoErie.com | Sunday, February 15, 2015
ERIE 2015
BRIAN GARLICK: ‘There were good people ready to go back to work.’
KLN might expand plant
Snacks’ success could lead to major expansion By VALERIE MYERS valerie.myers@timesnews.com
WATERFORD — With $26 million just invested in its new Waterford Township plant, KLN Enterprises Inc. is expanding production and considering expanding its plant. KLN subsidiary Barrel O’ Fun Snack Foods Co. East has been making kettle-cooked potato chips at the former Troyer Farms snacks plant since fall and now produces about 275,000 pounds of chips from 1 million pounds of raw potatoes weekly. It’s also begun production of extruded snacks, including puffs and popcorn, and in January added caramel corn and kettle corn. Now the company is looking at making those and more snacks in a bigger, better plant on property adjacent to the revamped facility. “We make products for other companies who in turn sell that product to retailers, and we need to wow those customers with our plants,” said Brian Garlick, general manager of the local Barrel O’ Fun facility. “KLN has top-ofthe-line plants, but they’re bursting at the seams. It has options to buy 20 acres to the east of us and is actively looking at building a plant there and making this building warehousing only.” The 145,000-square-foot Troyer Farms plant was idle for three years before Barrel O’ Fun bought and renovated it in 2014. The plant was purchased from Troyer Potato Products Inc. in June for $1.3 million, according to Erie County property records. The Troyer family built the plant in 1967 and made snack foods there until 2008, when it sold operations to Bickel’s Snack Foods
GREG WOHLFORD/Erie Times-News
Brian Garlick is Barrel O’ Fun Snack Foods Co. East’s general manager. Garlick, 41, is shown here near potato chips produced at the KLN Enterprises plant in Waterford Township.
WATCH IT: See video from the Waterford plant. GoErie.com/video Inc. Bickel’s moved production out of Waterford and to its York headquarters in 2011. Katie O’Connor, 32, of Wattsburg, was one of 77 local employees who lost their jobs when that happened. Originally hired by Troyer Farms in 2001, she’s been back at the plant, on the Barrel O’ Fun payroll, since July. “It’s nice to see the building in use again and not just sitting here empty,” she said.
O’Connor was off work for a year after Bickel’s closed and afterward found a variety of part-time work, some of it miles away. She’s now operating machinery and seasoning snacks alongside former coworkers in Waterford. “It’s good to be here,” she said. Former Troyer and Bickel’s workers are what brought KLN to Waterford, Garlick said. The company also looked at sites in Girard and Summit Township.
“The payback here was that we could hire some of these people,” Garlick said. “That kind of stacked the deck here. There were good people ready to go back to work, good managers and good facilities here.” Reopening the plant was personally satisfying for Garlick, who worked for Troyer Farms for three years and later as an operations manager for Bickel’s. “I was here during those transitions when a lot of people lost their jobs,” he said. “It took us about six months renovating the building before we got to bring some of them back. That was great.” Barrel O’ Fun now employs 150 people full time, including about 40 former Troyer and Bickel’s employees. A majority of its workers live in Waterford or Union City. Grateful for those jobs, the community has been looking for ways to support the plant, Garlick said. He’s heard from merchants who want to sell KLN and Barrel O’ Fun brands; without knowing it, most already do, Garlick said. Barrel O’ Fun makes a variety of snacks sold under other labels. Individuals want to buy the snacks, too, Garlick said. “People are used to Troyer Farms being here and going to the stores to buy their products, or coming here to buy. We can’t sell from here,” he said. “We can’t sell products with someone else’s name on it. But we’ve had just amazing community support.” Barrel O’ Fun Snack Foods Co. East will continue to add products and jobs and will continue to invest in Waterford, Garlick said. “This company plans to be here a long time. The investment it’s already made supports that,” he said.
V A L E R I E M Y E R S can be reached at 878-1913 or by e-mail. Follow her on Twitter at twitter. com/ETNmyers.
KLN’S HIRING ‘PHENOMENAL’ Union City Borough Council President Dan Brumagin worries that small communities can no longer offer the kind of incentives needed to keep or attract large employers. Ethan Allen, Union City Chair, Union City Memorial Hospital, Ames True Temper and other large employers have closed their local plants in recent years, putting more than 800 people out of work, by Brumagin’s 2013 estimate. To have a company come into neighboring Waterford Township and hire 150 employees — a majority of those from Waterford and Union City — has been “beyond our dreams,” Brumagin said. “I would have never thought that this area would be able to attract a business of that size that would employ that many people again,” Brumagin said. “Any growth in jobs in this area is fantastic; this hiring at KLN is phenomenal.” — Valerie Myers
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8K | Erie Times-News | GoErie.com | Sunday, February 15, 2015
ERIE 2015
What’s the formula?
Area colleges try variety of approaches to up enrollment By ERICA ERWIN erica.erwin@timesnews.com
GREG WOHLFORD/Erie Times-News
Mercyhurst University students, including junior Cayla Slade, 20, foreground left, and senior Blair Pembleton, 21, foreground right, take part in a microorganisms lab. The university, like others in the region, is taking steps to combat slumping enrollment. director for university communications. Keith Taylor, president of Gannon University, announced in October that the Catholic university would change its footprint, too, with the opening of a new campus in Ruskin, Fla., this summer. Taylor said then that one of the reasons behind the move was to reach a new pool of potential students. “We’re doing this because we have to make sure our campus stays strong,” he said. Mercyhurst University is considering cuts to faculty and sports as it battles declining enrollment. A faculty committee is
examining potential sources of additional revenue and is prioritizing where about $1 million in cuts could occur, if necessary. Cornell LeSane II, the dean of admissions at Allegheny College, went to speak to students and families in Baltimore at the end of January, one of what he said is an increasing number of outreach efforts by the college to boost enrollment. The number of early-decision applications and regular decision applications submitted are up, compared with this time in 2014, as are deposits, LeSane said. One of the biggest selling
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to lead efforts in departments across campus to keep students engaged and at Behrend. “It’s not just about going to class,” said Mary Ellen Madigan, who is in charge of enrollment management at the college. “It’s about getting involved in activities, meeting people, making friends, engaging with faculty, maybe getting involved in research. All of those things help a student feel like this is a place where they belong.”
E R I C A E R W I N can be reached at 870-1846 or by e-mail. Follow her on Twitter at twitter.com/ ETNerwin.
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points: the picturesque Meadville campus. “Just having them see the campus and the community pays dividends long term,” LeSane said. “It’s a big difference from seeing marketing publications.” At Penn State Behrend, which has seen strong enrollment thanks in part to high-interest programs and the recruitment of international students, part of the work is keeping current students. About 25 percent of students leave for another campus, in or out of the Penn State system. The college hired a retention coordinator two years ago
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Colleges and universities struggling with declining enrollment are tweaking their course offerings, reaching out to new groups of prospective students and offering incentives to help boost their numbers. Enrollment at Edinboro University of Pennsylvania stood at 6,837 students at the start of this academic year, down slightly from the same time the previous year. But admissions of new freshmen and transfer students increased for the first time in three years — a trend the university wants to see continue. The university is offering new programs, including new tracks in its computer science program and a first-of-its-kind online master’s degree in art therapy. It also recently lowered the bill for outof-state students: Tuition for outof-state students is now 5 percent more than for in-state students, down from 150 percent. But perhaps the most noticeable change was the opening of Porreco College in fall 2014. Billed as “the community’s college” and designed as a place where students can earn affordable degrees and job training, the campus at 2951 W. 38th St. offers four two-year associate degree programs and one certificate program. “Our academic leaders are being what I would consider very entrepreneurial, very proactive in trying to meet the needs of the region, both of students and employers,” said Jeffrey Hileman,
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 9K
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ERIE 2015
10K | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Erie’s past lives on in
MEMORIES
Is it possible to wax nostalgic for something that’s sitting in plain sight? Let there be no doubt about it. When the Erie Times-News asked readers what they missed most about the way Erie used to be, the leading answer by a wide margin was the Boston Store. The building, of course, still sits big as day along State Street, home to apartments and radio stations. Obviously, though, it’s not the bricks and mortar that we miss. It’s the life of the place, what it represented, what it said about Erie and ourselves. Here’s a glimpse at what some miss about the Erie that lives in our memories: ▀ Rita Chojnacki has fond memories of Fishers, at 10th and State streets. “They had a machine you could put your foot in and see your bones, and outline of your shoe to make sure it fits,” she said. ▀ Jim Hills said, “I recall the Boston Store in the 1940s. What I recall most was the great Christmas scenes in the display window. Always some part of the display moved.” ▀ Blanche Gehrlein remembers eating at the Boston Store, “at the sixth floor restaurant or basement cafeteria. They had everything in that building, and to me that was the greatest loss.” ▀ Timothy Church has fond memories of the Commerce Building, once one of Erie’s most imposing buildings. ▀ Helen List Elletso said she can still smell the bread baking at Firch Baking Co. at West 20th and Cranberry streets, where her father worked as a delivery driver. ▀ Scott David Fisher said, “My favorite was the old Central Mall back in the days when we had a supermarket,varietystore,drugstore
and several other shops in it.” He said he also misses Metro Health Center. “That was a blessing when you had a minor emergency and thebigtwoemergencyroomswere full at Hamot and Vincent.” ▀ Lisa Rodriguez Britton knows not everyone will agree, but she said, “I did like the Transitway Mall. Of course, I was a child and didn’t have it annoying me while driving.” ▀ Bobby Baumann’s favorite memory was of a public institution. “The most prominent building with so much history would be the Saint Joseph’s Home for Children, which Bishop John Mark Gannon had built with contributions and opened debt-free in 1922.” ▀ Mary E. Y. Czulewicz said, “ I miss Kresge’s and going up and down the elevator.” — Jim Martin
FROM TOP: The Commerce Building was an imposing structure at 12th and State streets. The Boston Store brings back fond memories for many Erie residents, who shopped and dined in the State Street business. The Transitway Mall restricted traffic on State Street. PHOTO CREDITS: Images contributed; Commerce Building image contributed by Thomas A. Teets.
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SUNDAY
February 15, 2015
Annual economic report for the Erie region
ERIE 2015
SECTION
L
ANDY COLWELL/Erie Times-News
DID YOU KNOW? According to the latest earnings report, issued in late January, GE Transportation recorded a $1.13 billion profit for 2014. The 2014 profit was down from the $1.16 billion profit that GE Transportation recorded in 2013.
ERIE’S DRAW:
Growing regional attractions and wider marketing are helping to boost tourism. 2L
This GE Transportation Evolution Series Tier 4-compliant locomotive is on display at GE Transportation’s Customer Innovation Center at the local plant in Lawrence Park Township.
Full speed
AHEAD COMEBACK?
Evidence points to not just a steady base but also growth in manufacturing. 9L
By JIM MARTIN jim.martin@timesnews.com Count 2014 as a “very good year” for GE Transportation. The company was first to market with a Tier 4 locomotive that meets the government’s latest pollution requirements. Revenues and orders soared, and more than 70 employees were called back to the company’s Lawrence Park Township plant, where 4,500 earn paychecks, making it Erie County’s largest employer. The company took orders for 1,355 of the new locomotives that meet the government’s newest and most stringent pollution standards as overall orders rose 62 percent to $1.9 billion.
➤ Please see FULL SPEED AHEAD, 8L
ALSO INSIDE THIS SECTION: !What’s poppin’ on Peach Street? Plenty of new businesses. 4L !Is Erie still affordable? 5L !Health-care law’s effects felt. 5L !Top employers hold on. 10L
2L | Erie Times-News | GoErie.com | Sunday, February 15, 2015
ERIE 2015
Tourism, hotels linked
Attractions, expanding market key to success
By JOHN GUERRIERO john.guerriero@timesnews.com Waldameer Park & Water World owner Paul Nelson knows that the park’s new wave pool will do more than make a big splash for his business this summer. Attractions such as the wave pool also will put more people into Erie County’s hotel rooms — one of many tourist attractions that are helping to drive a hotel building boom. “We get 35 percent of our picnics from Ohio (residents), and a lot of those people — when they come for a picnic — will stay overnight,” he said. “The more people we bring into town, they become overnight people; they become vacationers,” Nelson said during a tour of wave pool construction on a bitterly cold day. Nelson said he expects the park’s business to increase by 15 percent this year after the wave pool, a food concession building, additional lockers and related amenities open in late May or early June. And that’s good news for hoteliers who continue to build and add to what are now about 4,000 hotel rooms in the county. Some of the latest developments: ▀ A $42.5 million Courtyard by Marriott Bayfront Hotel, with 192 rooms, is being built west of the Bayfront Convention Center. ▀ Ground has been broken for a 54-room Bayfront Cobblestone Hotel and Suites, on the south side of the Bayfront Parkway near Liberty Park. ▀ Construction contin-
GREG WOHLFORD/Erie Times-News
ABOVE: Waldameer Park & Water World owner Paul Nelson is overseeing the construction of a mammoth wave pool, background center, and a new bathhouse and restaurant. AT LEFT: A four-story Candlewood Suites hotel is being built on the north side of Interchange Road, near the Millcreek Mall complex. CHRISTOPHER MILLETTE/Erie Times-News
ues on a 68-room Candlewood Suites on Interchange Road, near the Millcreek Mall complex, that will open this year. is ▀ Construction planned on a 79-room Sleep Inn & Suites, 8066 Old Oliver Road, and a 65room Best Western Hotel, 8033 Oliver Road, both in Summit Township. With Waldameer, Presque Isle State Park, Presque Isle Downs & Casino, Splash Lagoon Indoor Water Park Resort, the Erie Zoo and more, there are enough attractions to
drive people to Erie and keep them here for multiple overnight stays, said John Oliver, president of VisitErie, the county’s tourism promotion agency. But Oliver said, “I think it’s going to involve a continued marketing of Erie as a destination, and we’re also looking to market Erie as a four-season destination so we’re able to fill rooms not only in the summer, but also see increases in occupancy in the spring, fall and winter.” VisitErie markets Erie County in a 200-mile ra-
dius that includes Pittsburgh, Buffalo, Cleveland and southern Ontario, Oliver said. The agency this year will expand its marketing to Columbus, Ohio, he said. Oliver said that Waldameer’s wave pool, which will accommodate up to 1,000 people and hold 500,000 gallons of water, could lead to more overnight visitors who would check out other attractions. Oliver said shoppers, including those who stay one or more nights, continue to
Hotel stays beget more rooms By JIM MARTIN jim.martin@timesnews.com A historic snowstorm that buried Buffalo in November didn’t do much for the hotel business in Erie. A review of hotel tax collections provided by VisitErie, Erie County’s tourism promotion agency, shows that the hotel revenues fell off sharply compared to November 2013. Meanwhile, business in December was off just slightly. The broader trend, though, shows that in six of the past 12 months, hotel receipts topped those from the same month in the previous year. Over the past 12 months, Erie County hotels, inns and motels have collected $61.4 million in room charges. Those numbers appear to be driving additional hotel construction.
Erie County, which has about 4,000 hotel rooms, has between 300 and 400 newroomseitherunderconstruction or in the planning stages, said John Oliver, president of VisitErie. That spending, 3 percent of which VisitErie collects as a tax to promote local tourism, pumped more than $1.8 million into tourism promotion efforts over the past 12 months. The payback might not be immediate, but Oliver believes the end result will be more visitors making more trips to Erie. “Keeping in mind we never ran a TV commercial before that increase, in the past year we have run over 10,000 TV commercials and 10,000 radio spots,” he said. Most of that advertising has been directed to Erie’s traditional tourism markets, including Pittsburgh,
Cleveland, Buffalo and southern Ontario. The availability of extra money has VisitErie looking to expand its marketing reach into Columbus. Revenue from the hotel tax will also be used to help target younger visitorswithInternetadvertising and the increased use of social media. Evidence suggests that strategy is working. In just the past year and a half, the number of VisitErie Facebook friends has jumped from 3,000 to 24,000, while Twitter followers climbed from fewer than 1,000 to more than 4,000, Oliver said. The goal, he said, is to “build the Erie brand. “When visitors are thinking about vacation plans, we want them thinking about Erie.”
J I M M A R T I N can be reached at 870-1668 or by e-mail.
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Reflects an additional 2 percent tax collected ?>#' ;#:@5<+
2011: $613,784
Why it matters 2012: $636,724
2010: $570,320
SOURCE: VisitErie
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CHRIS SIGMUND/Erie Times-News
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JOHN GUERRIERO can be reached at 870-1690 or by e-mail. Follow him on Twitter at twitter.com/ ETNguerriero.
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be one of the most important drivers of Erie County’s more than $1 billion annual tourism industry. And with many hotels located “along the spine” of Interstate 90, Oliver cited that as a convenience for people who need a break from long-distance travel. But Oliver said it’s important that new hotels don’t siphon business from existing ones. “So the need is there to aggressively market Erie to increase the market share, as opposed to having new properties divide
up the market share,” he said. Nick Scott Jr., vice president of Scott Enterprises and VisitErie board chairman, said a number of regional assets have been added over the past decade, including Splash Lagoon, the casino, the Ravine Flyer II roller coaster and other Waldameer expansion, the Tom Ridge Environmental Center and the airport runway extension. “Andthoseallhelpedincrease demand for rooms. We have to be careful that we don’t oversupply the market without new demand generators,” he said. Scott called it “a big question mark” whether the allure of the current attractions will keep pace with the growing hotel rooms. Scott said his company, which owns Splash Lagoon, seven hotels, 12 restaurants and the Ambassador Center in Erie County, plans to expand the indoor water park in the next two years. The company is not ready to release details. But the expansion, he said, would help to increase occupancy and demand in the Erie hotel market. Scott Enterprises still plans to develop its propertyon theeastEriebayfront, including a first phase for a hotel. Scott said the company is working on architectural plans now. But more hotels will open before the bayfront hotel for Scott Enterprises, which is awaiting word on the state possibly awarding a tax abatement program to part of the bayfront. “I think time will tell how the market absorbs the additional rooms,” he said.
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ERIE 2015
4L | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Peach poppin’
New stores, restaurants come to Erie; more on way
A SAMPLING OF
WHAT’S NEW
Field & Stream, at the Millcreek Marketplace
By JOHN GUERRIERO john.guerriero@timesnews.com You could run out of breath quickly saying aloud the names of all the businesses that moved into the Millcreek Mall complex and other parts of the busy upper Peach Street shopping corridor in 2014. And 2015 is shaping up to be a busy year as well. For 2014, the big names include the new Field & Stream store in the Millcreek Marketplace, south of the mall complex, and two restaurants that opened in the former Burlington Coat Factory store at the mall — Mad Mex and Primanti Bros. Burlington has relocated to Summit Township on upper Peach Street. Mad Mex, Primanti Bros. and Field & Stream were just three of 11 new stores or restaurants that opened at the mall complex, said Joe Bell, a spokesman for Youngstown-based Cafaro Co., which owns the mall. The others were — are you ready? — Bob Evans Express, Forever 21, Dress Barn, Five Below, Carter’s, H&M, Pandora jewelry and Maurices, Bell said. “It was a pretty active year at the Millcreek Mall complex,” he said. Upper Peach Street continues to be the dominant retail center of the Erie region, though new stores continue to open along busy Buffalo Road in Harborcreek Township and West 12th andWest26thstreetsinMillcreek Township, among other places.
Home2 Suites by Hilton, 8035 Oliver Road
Primanti Bros. restaurant, at the Millcreek Mall. CHRISTOPHER MILLETTE/Erie Times-News
Chris Tomkalski, of JBI Painting & Powerwashing of Perry, Ohio, paints the ceiling of what will become the new 14,000-square-foot Old Navy store, which is being added to the building that houses Burlington Coat Factory on Keystone Drive in Summit Township. It wasn’t all upbeat for the mall in 2014. Women’s clothing retailer Coldwater Creek Inc. closed all of its stores, including the one at the mall, after filing for Chapter 11 bankruptcy protection and failing to find a buyer. As for businesses outside the mall complex, Nathan Miller, assistant zoning administrator for Summit Township, said among those that opened were: GetGo, 6400 Peach St.; Citta Pasta, 6660 Peach St.; Head West Outfitters, 8931 Peach St.; Auto Express Fiat of Erie dealership building, 9030 Peach St.; Home2 Suites by Hilton, 8035 Oliver Road; Zoom Tan, 6803 Peach St.; and Sports Clips, 6805 Peach St.
Also, Scott Enterprises opened Hooch & Blotto’s Sports Bar & Grill at 8071 Peach St., the site of the former Boston’s Restaurant. And in early January, Family First Academy Child Care Center opened at 8155 Oliver Road. Turning toward this year, look for Old Navy to open a new store this spring at 1894 Keystone Drive, south of the relocated Burlington. Old Navy is currently at the mall complex. Nearby, at the northeast corner of Douglas Parkway and Commons Drive, a five-unit retail building is also planned, Miller said. Another big change will come in May, when At Home, a home
décor superstore, will open at the former All Season’s Market Place in the mall pavilion, Bell said. The national chain will occupy the entire building — more than 80,000 square feet, Bell said. Massage Envy, offering massages and cosmetic treatments, will open in the next couple of months in the strip plaza at the mall complex between Fox & Hound Sports Tavern and LensCrafters, he said. “It’s going to be busy this year,” Bell said.
J O H N G U E R R I E R O can be reached at 870-1690 or by e-mail. Follow him on Twitter at twitter. com/ETNguerriero.
Five Below and Dress Barn, at the Millcreek Mall Pavilion
Mad Mex restaurant, at the Millcreek Mall.
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 5L
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Is Erie a cheap place to live? The Council for Community of Economic Research compared five $#'!#%<%68 #; 67< $56&*8 <$#%#'& 6# 67< /3<:/9< #; .+, 0)2) 4:-/% /:</8 /%" ;#4%" 67/6 #%1& 67< $56&*8 !:5$< #; 9:#$<:5<8 <($<<"<" 67< %/65#%/1 /3<:/9<)
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Employers face health law effects Saint Vincent Hospital, like many other local health-care providers, began preparing for the Affordable Care Act when it became federal law in 2010. The Erie hospital installed an electronic medical record system and converted all of its primary-care offices into patient-centered medical homes. It also formed an accountable care organization, a network that includes Saint Vincent, its employed doctors and several independent medical practices. All of these changes allow Saint Vincent to earn higher payments for treating Medicare patients, according to the ACA. But the ACA’s most significant impact on Saint Vincent is in the hospital’s role as an employer, not a health-care provider, said Tom Fucci, Saint Vincent’s chief operating officer. “The biggest impact for us is that our employees’ children now have health insurance coverage until they are 26,” Fucci said. “It’s 200 to 300 additional peopleonourhealthplans. Our health-care costs are up, in part because we are covering more bodies.” Saint Vincent isn’t the only local employer who has seen health insurance costs increase since the ACA took effect. ECCA Payroll Plus saw its health insurance premiums increase by about 30 percent for 2015. It would have likely been even higher, but the Millcreek Township company enrolled early so it could keep its ACA-noncompliant plan, said Doug Starr, ECCA president. “We have 47 employees, so we otherwise would have gone to an ACA-compliant plan with a community rating,” Starr said. “Those premiums only take age and tobacco use
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AFFORDABLE CARE ACT TIMELINE 2010: Coverage options provided for those with preexisting conditions; insurance companies prevented from denying coverage to children with pre-existing conditions; lifetime limits on coverage banned; prevention and health programs funded; young adults permitted to stay on parents’ plans until 26.
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2011: Discounts for seniors in Medicare’s coverage gap; free preventive senior care; insurers forced to pay rebates to customers if costs or profits too high. 2012: Financial incentives offered to hospitals to improve quality of care; physicians offered incentives to form groups to better coordinate patient care; regulations begin to move health systems from paper records to electronic systems. 2013: States required to increase payments for primary care doctors; open enrollment in the Health Insurance Marketplace begins. 2014: Reforms prohibit discrimination based on gender or pre-existing conditions; annual limits on insurance coverage eliminated. 2015: Physicians’ payments tied to quality of care. SOURCE: U.S. Department of Health and Human Services
into effect, and we were told our premiums would have likely been much higher. But we couldn’t switch insurers, so we had limited options.” ECCA buys its insurance through Jeff Evans Jr., an employee benefits consultant for Northwest Insurance Services. Evans said the biggest change he has seen since the ACA rolled out, in addition to higher premiums, is the level of service health insurers provide to smaller employers. “Almost all of the insurance companies have restructured their small business unit so that it includes businesses with up to 100 employees,” Evans said. “That’s a significant change. There are lots of insurance reps out there who are used to working with companies with 30 to 40 employees, not 90. Those larger employers expect a lot of information, a lot more assistance and attention.” Higher premiums and a lack of clarity about the ACA and its effects have caused some employers
to delay hiring additional employees, Evans said. “We have seen situations where employers have chosen not to hire,” Evans said. “They look at the cost of their premiums going up 25 percent, they don’t know what the cost will be next year, and they decide not to hire.” Starr said he’s not sure what will happen with ECCA’s health insurance rates for 2016 and beyond. At some point, the company will have to switch to an ACA-compliant plan. ECCA will then be able to shop different insurers, but Starr is worried that having a community-rated plan will be extremely expensive. “We share the premium cost with our employees, though we pay the bigger share of it,” Starr said. “We’ll have to see what happens. With a new Congress this year, maybe something will change.”
D A V I D B R U C E can be reached at 870-1736 or by e-mail. Follow him on Twitter at twitter.com/ ETNbruce.
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ERIE 2015
8L | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Full speed AHEAD Continued from 1L
For the third straight year, earnings topped $1 billion. But no one, it seems, is taking anything for granted. Russell Stokes, who took the helm as the company’s chief executive in October 2013, knows the company has an advantage. If a U.S. railroad wants to buy a new freight locomotive, GE Transportation is the only company with one to sell. But Stokes said that advantage might have a short shelf life. Caterpillar Inc., which now owns Electro-Motive Diesel, the other big player in the U.S. freight locomotive market, has said publicly that it wouldn’t have a Tier 4 locomotive ready to sell before 2017. “I expect you may see them back sooner,” Stokes said. “They are making comments now around 2016. I wouldn’t be surprised if they got back in late 2016.” Stokes can’t control Caterpillar’s timetable, but he’s determined to make the most of this head start. “If we focus on doing what we need to do, delivering a great, reliable product, then things will take care of themselves,” he said. Strong sales of Tier 4 locomotives are good for GE Transportation. What’s less clear is what it means for the Erie workforce. Although GE’s local plant builds most of the locomotives and kits for foreign customers, most of the Tier 4 locomotives
GE Transportation trends &#% (02/-1"$+ #%-'.)-,*%,+ !+ !1 Chicago, but its largest plant is in Erie. Note: All figures are for fourth quarters from 2012 to 2014.
Fewer workers
Profits jump
Sales
Layoffs occurred, but employment at the Lawrence Park plant has stabilized.
Indicates profits after taxes.
$1.9
5,300
ANDY COLWELL/Erie Times-News
The cab of a GE Transportation Evolution Series Tier 4 locomotive — which features a computer system called Trip Optimizer that helps boost fuel economy — is displayed at GE Transportation’s Customer Innovation Center in Lawrence Park Township. will be built in Texas.
Contract looms More than its current edge over Caterpillar, more than sales numbers, the future of GE Transportation in Erie might well hinge on contract negotiations that begin in June. Four years ago, General Electric and the United Electrical, Radio and Machine Workers of America reached a fouryear pact that both sides touted as a victory. The contract included a signing bonus and pay raises. The company scored wins with provisions that workers would pay for a larger share of their health care
and that new employees would receive a 401(k) in place of a traditional retirement plan. When that agreement was signed, weeks after a second U.S. locomotive plantwasannounced,shifting jobs to Fort Worth was not an immediate option. That’s all changed. It became clear in the summer of 2013 that the company wanted employee costs in Erie to fall closer to those in Fort Worth. After announcing 950 job cuts, the company said it would spare 410 of the jobs if the union agreed to a two-year wage freeze and lower pay for new employees. The union rejected that
offer, but the stage appears set for intense negotiations this time around. Key issues will include health care, compensation and retirement, Stokes said. “It’s always important to make sure we have a competitive position to be able to deal with the likes of not just Caterpillar EMD, but competition globally from the Chinese,” he said. Does the Fort Worth plant increase pressure on union workers in Erie? “Our global competition is very aggressive, and all of our facilities need to remain committed to driving a culture where cost, ontime delivery, quality and safety are critical to our ongoing success,” Stokes
0
2012
2014
The value of new orders for *#% (02/-1"$+ transportation business in the fourth quarter of 2014. It is unclear how much effect sales will have on the Erie plant in 2015.
$316
5,500
4,500
billion
In millions.
$252
$0
2012
$280
2014
SOURCES: GE Transportation; Erie Times-News archives JIM MARTIN and CHRIS SIGMUND/Erie Times-News
said. “Erie, Texas, Grove City should view each other as partners — we are in this together.” Scott Slawson, president ofUE506atGETransportation, said Erie workers are worth every dime. “Labor is a very small part of the cost. Material costs are astronomical, and there are very expensive overhead costs,” Slawson said. “You have to take into account the overall cost of the Fort Worth facility. It’s very expensive, and it’s going to take time to pay that off. They are not any cheaper than we are.” Barbara Chaffee, president of the Erie Regional Chamber and Growth Partnership, hopes an agree-
ment can be reached. “I do believe these negotiations are critical for Erie in the long haul. We need to not just look at the short term,” she said. “We are looking at do our children here in Erie have a future at GE?” Stokes reflected on what he considers a successful year. “I would like to thank everybody. It’s been a very good year,” he said. But he cautioned they “need to find ways to be better than we were last year.”
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 9L
Manufacturing steady
Sector shows strong signs of a comeback
Manufacturing jobs’ trend
The employment sector is the second-largest in Erie County.
Erie County at a glance Average employment, yearly, in thousands.
25
By JIM MARTIN jim.martin@timesnews.com
Raw employment numbers suggest a harrowing decline in manufacturing. In 1974, manufacturing in Erie County reached its peak with more than 50,000 employees. Today, 41 years later, that number has fallen to about 22,000. But a growing body of statistics and anecdotal evidence suggest something entirely different. Fueled by low energy costs, improved U.S. productivity and the growing cost of producing goods in China, some experts believe that domestic manufacturing is making a comeback. You’ll find evidence of brisk business at companies such as GE Transportation, Viking Plastics and Plastikos, where company President Philip Katen said 2014 might have been the best year yet. “It was a very good, very strong year across a range of our customer base,” he said. “We had especially strong growth from the medical segment.” What’s more, he’s seen the trend of offshoring — shipping production out of the country to low-cost producers — has slowed and even shown signs of reversing itself. “We have seen customers that were actively and fairly aggressively offshoring stop that strategy,” Katen said. “They started to realize there wasn’t a pot of gold at the end of the rainbow.” With wages rising rapidly in China, Boston Consulting Group estimates that China’s cost advantage has shrunk to just 4 percent over the U.S., according to the Wall Street Journal. Robin Scheppner, chief exec-
2004:
24.4
2010:
19.6
22.1
GE Transportation
Erie County lost 6,600 jobs during the global recession, 4,400 of which were in manufacturing. 5 FILE PHOTO GREG WOHLFORD/Erie Times-News
Shipping caps for the automotive industry are manufactured at Viking Plastics in Corry in 2014. Job levels in manufacturing over the past two years have held mostly steady in Erie County at about 22,000 workers. utive of American Tinning and Galvanizing Co., which employs about 70 people, said 2014 was something more than a bounceback year. “It was a significant improvement,” she said. “Our customer base actually expanded.” While U.S. manufacturing employment edged up by 600,000 people over the past four years, employment levels over the past two years have held mostly steady in Erie at about 22,000. That, in itself, can be viewed as a victory. History shows that Erie has sustained a substantial net loss of manufacturing jobs in each recession. This time around, Erie regained most of the manufacturing jobs it lost, after falling to an average of 19,600 in 2010. Jake Rouch, vice president of economic development for the Erie Regional Chamber and Growth Partnership, sees a confluence of events coming
together to produce an environment that could allow the manufacturers who survived tough times to flourish. “The number of competitors that companies are facing domestically is diminishing,” Rouch said. “No one is racing into manufacturing anymore.” Couple that reality with growing demand worldwide, and “it leads to opportunity for those still in existence who have made the investmentin technology and their workforce,” Rouch said. Instinct might suggest that growing success for manufacturers will likely prompt others to invest in manufacturing, ultimately driving down prices. Rouch doesn’t see it. Ramping up a new manufacturing facility is too expensive to be done on a whim. That doesn’t mean there aren’t challenges. Katen sees them every day as his company looks for qualified workers.
“We have a few open positions we have been trying to fill for the better part of a year,” he said. Katen said he struggles to find workers willing to commit to a career in manufacturing. He’s hired apprentices who have trouble showing up at work. Other companies report a struggle to find prospective employees who can pass a drug test. Katen said, “My read on it is a broader challenge that manufacturers and a lot of the trades face, a lost generation, where parents and aunts and uncles and teachers steered a generation of young people away.” For his part, Rouch is impressed and encouraged by the companies he sees investing and planning their moves. Scheppner isn’t taking anything for granted, but the evidence, including lots of work for the aerospace industry, has her “very optimistic and encouraged
CHRIS SIGMUND/Erie Times-News
by what I see for our forecast.” She’s not the only one keeping busy. GE Transportation has invested millions in two Grove City engine plants. KLN is making potato chips 24 hours a day in Waterford, and the sights and sounds of shipbuilding have returned to Erie’s bayfront. Rouch wonders if Erie may be entering a second golden age of manufacturing, an era not as smoky or as dominant as the boom times many remember. Erie, where the concentration of manufacturing jobs is twice the national average, already has an edge, he said. “We stuck to our guns,” he said. “We never let manufacturing disappear.” Now, he said, “We need to run toward it.”
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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SOURCES: U.S. Bureau of Labor Statistics; Economic Research Institute of Erie; Erie Times-News archives
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10L | Erie Times-News | GoErie.com | Sunday, February 15, 2015
ERIE 2015
EMPLOYER SNAPSHOT: Rankings show diversity among county’s largest companies
Top 5 hold on
By JIM MARTIN jim.martin@timesnews.com
Here’s a sobering fact. At a time when diversity of employment is seen as a safeguard against tough times, 1 in 13 working residents of Erie County is employed by 1 of just 4 employers. The top spots on that list haven’t changed much in years. GE Transportation, Erie Indemnity Co., UPMC Hamot remain in the top three spots. In the second quarter of 2014, state government moved into fourth place, replacing Saint Vincent Hospital, which moved to fifth place. In Crawford County, the top spot belongs to Meadville Medical Center. In Erie County, where the top four employers combine to employ more than 10,000 people, it’s fair to acknowledge that the community has a lot of its eggs in just a few baskets. At the same time, a review of the top-50 list suggests that Erie County has in some ways never been more diverse. Although Erie County has about twice the manufacturing employment of an average county its size, only nine manufacturing companies make the list of the county’s 50 largest employers. The rest of the top 50 are a strikingly varied group that includes retailers, social service organizations, colleges, schools, retailers, a convenience store chain, and a restaurant and hospitality company. Crawford County’s mix
FILE PHOTOS/Erie Times-News
AT TOP: Erie Indemnity Co., headquartered in downtown Erie, is Erie County’s secondlargest employer. ABOVE LEFT: GE Transportation, in Lawrence Park Township, is the county’s largest employer. ABOVE RIGHT: UPMC Hamot is the third-largest employer. of top employers is slightly less diverse, with 15 manufacturing companies included among the county’s 50 largest employers. The number of large manufacturing employers reflects another reality. Crawford County’s manufacturing employment sector represents 22.6 percent of all nonfarm jobs, compared with just 16 percent in Erie County.
Wal-Mart Stores, the nation’s largest employer, also figures prominently in this region. The retailing giant was the sixth largest employer in Erie County and the seventh largest in Crawford County. The lists of top employers also demonstrates that a growing share of us work in the public sector. Government bodies,
public school districts, and public colleges and universities accounted for seven of the top spots in Erie County and six of the top 20 spots in Crawford County.
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
Who employs the most in Erie County? As of the second quarter 2014, the most recent data available, compared to the first quarter of 2004. 2014 2004 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
1 2 3 4 5 7 6 8 12 9 11 16 13 22 20 10 33 27 24 42 29 48 30 44 28 39 31 25 35 45 34 18
GE Transportation Erie Indemnity Co. UPMC Hamot Pennsylvania state government Saint Vincent Hospital Wal-Mart Erie School District U.S. government Dr. Gertrude A. Barber National Institute Erie County government Millcreek Township School District Presque Isle Downs & Casino Lord Corp. City of Erie Pennsylvania State University Country Fair Inc. Plastek Group Inc. Tamarkin Co. YMCA of Greater Erie Gannon University Regional Health Services Inc. State System of Higher Education (Edinboro University) Mercyhurst University Millcreek Community Hospital Wegmans Lakeshore Community Services Voices for Independence Erie Homes for Children and Adults Inc. -$*#%/1"+; <>;9/6</%9; 4/7%9 -/<&+; 2#'> #= 8<7> Pleasant Ridge Manor Infinity Resources Inc. Dr. Gertrude A. Barber (serves clients in their homes) Saint Vincent Medical Education & Research Institute Parker-Hannifin Corp. Waldameer Park Associated Clinical Laboratories Welch Foods Inc. Stairways Behavioral Health Northwest Tri-County Intermediate Unit Harbor Creek School District Eriez Manufacturing Co. .#(>+; 2#'> ,>%9><; 0%$) Port Erie Plastics Inc. 8/9+% :/<3 2#;!79/179& 5<#6! Parker White Metal Co. Northwest Bancshares Inc. FMC Tech Measurement Solutions Fort LeBoeuf School District Career Concepts Staffing Services
Crawford County’s top 5 employers 1 2 3 4 5
1 2 3 4 -
Meadville Medical Center Pennsylvania state government Crawford County government Crawford Central School District Allegheny College
SOURCE: Pennsylvania Department of Labor & Industry
ERIE TIMES-NEWS
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SUNDAY
February 15, 2015
Annual economic report for the Erie region
ERIE 2015
SECTION
M
CHRISTOPHER MILLETTE/Erie Times-News
DID YOU KNOW? Immigrants have higher business ownership rates than those who are not immigrants: Roughly 1 in 10 immigrant workers owns a business, the U.S. Small Business Association reported.
ON THE BAY:
Businessman Tim Sedney has been steadily adding to his interests on our growing bayfront. 6M
Saad Albidhawi has owned and operated Albidhawi Auto Service since 1998. Albidhawi, 47, is an Iraqi immigrant who has lived in Erie since 1993. “I look back at everything and see where I am now,” Albidhawi says. “I’m very blessed.”
American
DREAM GOING STRONG:
There’s plenty brewing at Mill Creek Coffee: a new name, a new showroom, and plans for the future. 5M
By GERRY WEISS gerry.weiss@timesnews.com When Saad Albidhawi emigrated to Erie, the Iraqi refugee spoke no English and had $300 to his name. Today, the 47-year-old entrepreneur and auto repair shop owner is living proof the American dream is still possible. “I’ve been blessed with this opportunity,” he said from the office inside Albidhawi Auto Service, 2502 Parade St., which he’s owned and operated since 1998. “I look back at everything and see where I am now. I’m very blessed.” In the early 1990s, Albidhawi and his two
➤ Please see AMERICAN DREAM, 7M
ALSO INSIDE THIS SECTION:
!Are we lacking entrepreneurs? 2M !Medical web business in the works. 3M !New restaurant gets a kickstart. 3M !It started with a sound idea: sleep phones. Now, sales top $3 million. 4M
ERIE 2015
2M | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Entrepreneurs in short supply
By JIM MARTIN jim.martin@timesnews.com
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Jeff Parnell knows what the statistics suggest about the lagging success of upstart business owners. But he also knows what he sees day after day as executive director of the Erie Technology Incubator at Gannon University.
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laborative, an Erie-based nonprofit organization dedicated to boosting entrepreneurism in the Erie area, said the organization is awaiting word on a grant application for $750,000 from the Erie County Gaming Revenue Authority. If the grant is awarded, she said, the money would be distributed to groups working to promote business startups. “We don’t have an attraction tool other than the facts,” she said. “Now we will have money to give to people who are willing to step in and be part of the solution.” Zimmerseesnoshortage of organizations working to help small businesses. If there is something missing, shesaid,itisawayforthose groups to work together to help entrepreneurs find the support they need. More than anything else, though, Zimmer sees the need for Erie to unleash its creative energy and hold in check its fear of failure. “The No. 1 priority is laying the groundwork to really change our culture over time to be less complacent and less risk averse,” she said.
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capacity for taking chances and starting businesses. TheEconomicResearchInstitute of Erie, which measures turning points in the localeconomywiththeErie Leading Index, is working on a different sort of index. “We want to come up with a single composite measure of the degree to which our area is (engaged in) entrepreneurial activity,” Louie said. He and the institute are among a long list of local groups that have begun to focusonErie’sneedfornew businesses that could grow into larger businesses. Beth Zimmer, chief executive of the Innovation Col-
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While many remember the 1960s and 1970s as the height of manufacturing employment in Erie County, it was also a vibrant time for small businesses. In 1969, 10 percent of all income in Erie County was earned from proprietorships, which are a proxy for entrepreneurial activity, Louie said. Today, proprietors account for just 5 percent of Erie County income. That’s just a little better than half the national average, Louie said. Concerns about entrepreneurial activity in Erie County have Louie looking for a way to measure our
JEFF PARNELL: ‘I think the world is more sophisticated today. There is a lot of competition out there.’
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Economists have been
arguing for years about the merits of small companies versus large companies when it comes to creating jobs. One recognized study pointed to a different conclusion — that it’s the age, not the size, of the firm that determines how many jobs it creates. “Companies under the age of 5 tend to be the ones that create the most jobs,” said Ken Louie, director of the Economic Research Institute of Erie at Penn State Behrend’s Black School of Business. Statistics suggest Erie doesn’t have enough of those.
BETH ZIMMER: ‘The No. 1 priority is laying the groundwork to really change our culture over time.’
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KEN LOUIE: ‘Companies under the age of 5 tend to be the ones that create the most jobs.’
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Erie Insurance and Lord Corp. rank today among Erie’s best-known and largest employers. That’s not all they have in common. Both began life 90 years ago, growing from the vision of Erie entrepreneurs. Lord Corp., with more than 850 employees in Erie County, was born of frustration when patent lawyer Hugh Lord couldn’t find anyone to manufacture the products he had invented. Erie Insurance, with more than 2,100 local employees,wasthebrainchild of H.O. Hirt and O.G. Crawford, middle-aged insurancesalesmenwhothought they could do better. Those late business owners helped write two of the most prominent chapters in the long, proud history of Erie entrepreneurs. Growing evidence suggests, however, that dreambig entrepreneurs are losing traction in Erie County. And there’s reason to believe that doesn’t bode well for the future.
“I am optimistic because I see the enthusiasm and the eagerness to learn,” he said. Parnell said he’s also encouraged by the growing number of organizations, including the Gannon Small Business Development Center and Ben Franklin Technology Partners, that are providing funding and assistance for the next generation of Erie business owners. What’s more, Parnell said he’s excited by the plans of incubator tenants, companies such as MedicalOpinionCenter. com, which will provide medical patients with second opinions, and Conduit Technology, which is working to streamline the flow of medical records. Years ago, Erie made a name for itself as a center for plastics manufacturing; neighboring Crawford County, meanwhile, already had a reputation as a center for the tooling industry. Parnell wonders if Erie might become a center for the development of medical devices or medical technology. Only time will tell, he said. Earlier generations, including the founders of companies such as Hammermill Paper and American Sterilizer Co., likely launched their companies without the helping hand of public grants, formal mentors or incubators. But the old way isn’t the only way. Zimmer, Parnell and a long list of others are confident that success stories will emerge from programs that offer a helping hand. “I think the world is more sophisticated today,” Parnell said. “There is a lot of competition out there. And (as an entrepreneur) you owe it to yourself to find people whose primary interest is helping you.”
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 3M
2nd opinions from home
By DAVID BRUCE david.bruce@timesnews.com Stephen Kovacs, D.O., sees patients with lung problems all day long as a pulmonologist at Saint Vincent Hospital. His plan is to help even more patients through a new online business he has formed with two other physicians, a lawyer and softwarearchitect Jamison Krugger. MedicalOpinionCenter. com is a website that will allow patients to seek a second opinion without having to leave their home. Kovacs, 37, and his partners would put the patient in touch with a physician specialist who would analyze the patient’s medical records and diagnostic
scans to determine if the treatment they are receiving is the best for their illness, injury or condition. “So many patients have to wait a long time or drive out of town to see a specialist,” Kovacs said. “We are offering a way to provide expert opinions to people who might have trouble getting them any other way.” The idea for Medical OpinionCenter.com began about three years ago when Kovacs and Krugger were introduced by Krugger’s girlfriend, who worked with Kovacs in Saint Vincent’s intensive care unit. Kovacs had been thinking about ways to spread the word about new and improved lung cancer procedures and treatments. Krugger’s experience as a software developer led them to consider creating a website that would allow patients to reach out online to physicians across the country.
CHRISTOPHER MILLETTE/Erie Times-News
MedicalOpinionCenter.com — conceived three years ago by Jamison Krugger, left, and Stephen Kovacs, D.O. — is based at the Erie Technology Incubator. “We looked at organizations like the Cleveland Clinicandothers,andtheir efforts seemed to be on the right track,” Krugger said. “But our site would have
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Michael and Elizabeth Augustine, longtime owners of Like My Thai, a popup restaurant operated one day a week — wanted to do the impossible. The couple, prior owners of Papa Joe’s Pepperoni Cafe, wanted to open a permanent restaurant without taking out a loan. “We didn’t have the money, and we didn’t think we wanted to go into debt,” Elizabeth Augustine said. “We got really into debt (with their previous restaurant) and learned a lot of lessons.” Augustine, who opened her new restaurant at 827 State St. on Jan. 26, made one conventional move to get the needed money and another that would have been unheard of a few years ago. First, she took on an investor. She and Bonnie Baker formed a corporation. Then Augustine, whose husband works in the kitchen, looked to the world of crowdfunding to raise money. Among other things, they needed money for kitchen equipment, rent and a deposit. She decided to seek help on Kickstarter, an online crowdfunding program that pairs business owners with donors who pledge a specific amount of money in exchange for some sort of payment in kind. But it wasn’t a sure thing.
GREG WOHLFORD/Erie Times-News
Like My Thai restaurant chef Mike Augustine and Elisabeth Augustine, his wife and the restaurant’s owner, work at their new restaurant at 827 State St. Kickstarter’s own statistics say about 39 percent of all projects are funded. Augustine said she and her partner turned the job over to Quickstarter, a no-charge initiative run by students at Mercyhurst University under the supervision of Kris Wheaton, a professor of intelligence studies. Wheaton’s team urged them to set a low fundraising goal of $4,000. In just 15 days, Like My Thai’s Kickstarter campaign raised $14,000, more than enough to open the
doors of the new restaurant. Now, Augustine said, they’re busy paying off debts — shipping out Tshirts, and personalized chopsticks and cooking dinner for donors in their homes. Augustine knows she’s not out of the woods yet. But so far, she said, “It’s worked out wonderfully.”
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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D A V I D B R U C E can be reached at 870-1736 or by e-mail. Follow him on Twitter at twitter.com/ ETNbruce.
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MedicalOpinionCenter. com expects to have between 70 and 80 physicians on staff in 10 core specialties, including cardiology, oncology and pulmonology. “The physician will send their opinion to the patient within five days,” Kovacs said. “They will also send it to the patient’s primary physician, as well.” Unlike traditional second opinions, these online opinions are not currently covered by most health insurers. The cost is expected to be close to the $565 the Cleveland Clinic currently charges for online second opinions, Kovacs said. “This isn’t designed to replace the primary or specialist physician,” Kovacs said. “It’s to give patients another option.”
By JIM MARTIN jim.martin@timesnews.com
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access to physicians from many different medical centers, not just one.” Kovacs and Krugger, 41, began recruiting physicians to serve as the web-
site’s panel of experts, while working on the website to make it simple and safe for patients to use. Once testing is completed and the website opens later this year, here is how MedicalOpinionCenter. com will work: Patients will log on, fill out forms and complete a questionnaire about their medical condition. They will then send any relevant diagnostic scans via FedEx to the company, which recently moved into the Erie Technology Incubator, 900 State St. “We would prefer that people send us those scans digitally,” Krugger said. “But people have issues in dealing with their PCs in general, and many of them are using devices that don’t have a CD-ROM, so they can’t send them to us that way.” The website would translate all of a patient’s information into a concise report, then send it to an expert physician.
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Web business coordinates medical advice from experts
ERIE 2015
4M | Erie Times-News | GoErie.com | Sunday, February 15, 2015
WEI-SHIN LAI: ‘They’re really surprised to hear that we’re from Erie, Pa.’
Inventors’ dreams sweet
SleepPhones inspired during bout of insomnia By VALERIE MYERS valerie.myers@timesnews.com
Wei-Shin Lai and husband Jason Wolfe made their first SleepPhones at their kitchen table in Bellefonte, near State College, in 2007. Lai, then a private practice physician, had trouble getting back to sleep one night after a wee-hours call. Her husband suggested that she listen to soft music, but she could find no earphones or headphones comfortable enough to sleep in. So husband and wife decided to make and market their own. They ordered the flattest speakers that they could find online, in catalogs and at their local Radio Shack store, and bought soft fleece for headbands to hold them in place. “We waited for the newspaper coupons every week and then drove around to multiple JoAnns, not only in State College but in Altoona and Williamsport. We were buying them out,” Lai said. Each evening after work, Wolfe, a games developer originally from Cambridge Springs, soldered parts for the speakers. Lai stitched headbands on a sewing machine that Wolfe had bought for her birthday. “I had to learn how to sew,” she said. The SleepPhones that the couple created allow wearers to fall asleep listening to nature sounds, audio books or soothing music from their iPods, MP3
QUICK FACTS
GREG WOHLFORD/Erie Times-News
AcousticSheep inventor Wei-Shin Lai, M.D., models RunPhones Wireless at the company’s Millcreek Township office and warehouse. players, smart phones or CDs. Their company, AcousticSheep LLC, got its first, provisional patent and launched a website to sell the easy-wear speakers, including 500 that the couple had made by hand. Sales totaled about $30,000 in 2007, and topped $3 million in 2014. AcousticSheep now makes both wired and wireless SleepPhones plus RunPhones, waterresistant headband speakers. As its product line grew, the company — including only Lai as chief executive and Wolfe as chief technical officer — moved to the EBCO Business Park in Millcreek Township in March. “We had things in our basement and in the garage, and had
sheep stacked up in our bedroom. The business was taking over our house,” said Lai, who is originally from Tennessee. The sheep are stuffed animals sketched by Lai and made for the company by the Mary Meyer Co. in Vermont. Each animal has a pocket in the back to hold a musicplayerorSleepPhonesbyday. AcousticSheep hired its first employee, Wolfe’s brother, Jeff Wolfe, of Erie, as warehouse manager. Just one year later, the company employs 21 full- and part-time staff. Almost every one of those employees attended the 2015 International CES, formerly the Consumer Electronics Show, in Las Vegas in January to help pitch AcousticSheep products.
▀ AcousticSheep is a hybrid term referring to sound and the sheep that its customers previously counted. The company logo ▀ includes Cirrus, a sheep named for a cloud. Stuffed versions are available “to good homes” at www. sleepphones.com. Other companies assumed that the innovative company hailed from California’s Silicon Valley, Lai said. “They’re really surprised to hear that we’re from Erie, Pa., but we have a distinct advantage here. There’s a large untapped labor pool, and people are very dedicated to their work. Businesses root for each other and work together very well. I’m not sure you can say that about Silicon Valley,” she said. Dedicated AcousticSheep employees continued to pitch SleepPhones and RunPhones on the way home from the show. “We were all sitting in different parts of the plane and were all wearing our SleepPhones,” Lai said. “I could hear the others
starting pitches to the people beside them. There she goes over there; there he goes; they were selling all over the plane.” Employees also pitched in to recruit friends, parents, spouses, neighbors and even softball teammates to help pack stacks of Christmas season orders, Lai said. Customers help promote the products, writing to say that they now sleep soundly without medication or have saved their marriage because they can sleep in the same bed with a snoring spouse. “I feel that I’m helping more people than I ever did as a doctor,” Lai said. “As a family doctor, I can only help one person at a time.” Lai expects growth in sales and employment. New SleepPhones Effortless and RunPhones Effortless, both with induction charging, won the company its third CES Innovation Award this year and should be popular with consumers. Appearances or mentions on the “Today” show, by Dr. Oz, in Forbes, in the New York Times and other media have helped make RunPhones and SleepPhones a dream to market. They’re sold, starting at $39.95, in major catalogs, by major online retailers and at brick-andmortar stores including Cell Fixer in the Millcreek Mall, YogaErie in the Colony Plaza, Dunham’s Sports in Meadville, and Complete Wireless in Yorktown Centre, Waterford and Edinboro. Despite their success, Lai and Wolfe hang onto a memento of their company’s humble roots. “We still have that kitchen table,” Lai said, “with its soldering iron marks.”
V A L E R I E M Y E R S can be reached at 878-1913 or by e-mail. Follow her on Twitter at twitter. com/ETNmyers.
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 5M
ANITA ROSE MARCOLINE: ‘We are changing our name and upping our game.’
A taste for success
Marcoline an entrepreneur long before coffee work By JIM MARTIN jim.martin@timesnews.com
SARAH CROSBY/Erie Times-News
Anita Rose Marcoline, owner of newly renamed Mill Creek Coffee, works in the Linden Avenue business. fee places in the hands of its customers. “We are changing our name and upping our game,” she said. “After 10 years of being McCormick Coffee, we decided it would be a good time to put a new face on the business. I feel that the McCormick name had gotten a little stale, and you sure don’t want that in the coffee industry.” Marcoline, a certified
barista, said she’s hoping to avoid that trap and has plans to teach a coffee class that will touch on the fine points of making coffee and coffee drinks. She’s already opened a showroom where customers can buy coffee or coffee-making equipment, including Keurig-type coffee makers. Marcoline, who said her company is already the largest distributor
of K-Cups in the Erie region, credits both Keurig, which popularized those single-serving cups, and Starbucks with elevating America’s love of coffee. “They have changed the way people buy coffee,” Marcoline said. “People don’t buy it by the pound; they buy it by the cup.” In much the same way, she said, Starbucks has helped elevate coffee to the level of wine, a prod-
uct that consumers crave, savor and discuss. As much as she loves coffee and the business of selling it, Marcoline recognizes in herself the broader impulses of an entrepreneur. “I was always looking for an opportunity,” she said. “I think if you are alert, you start to see things you understand are missing.” Marcoline, who spent 10 years as an X-ray techni-
J I M M A R T I N can be reached at 870-1668 or by e-mail. Follow him on Twitter at twitter.com/ ETNmartin.
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Anita Rose Marcoline dipped her toe into the world of business at an early age. Marcoline, who was 10 at the time, remembers walking through her hometown of Kane, selling something called Cloverine salve. She hit her first sales target, selling enough salve to win a camera. The camera broke a few days later. But the entrepreneurial spirit she discovered as a child is still alive and well 53 years later. Marcoline, who bought McCormick Coffee 10 years ago, today runs a company that serves an average of 21,350 cups of coffee a day, mostly by providing coffee and coffee machines to offices within a 100-mile radius of Erie. But Marcoline, who moved into a new building and opened a new retail space a year ago at 1222 Linden Ave., isn’t standing still or resting on her laurels. In fact, she changed the name of her company earlier this year to Mill Creek Coffee and has plans for expansion. The new name will appear soon on the company’s delivery trucks and, eventually, on the equipment Mill Creek Cof-
cian, saw firsthand things that were missing in her world. That led her to form Lake Erie Couriers, a company that picked up lab specimens from area medical offices. Later, inspired by the struggle to find fax numbers and contact information for medical facilities, she launched Regional Fax Directories, a directory for Erie County Medical offices that is still published today. It was while running the cafe at what is now Saint Vincent Hospital that she decided she had finally arrived as a business owner. “I went down to my old boss’ office, and she had a cup of my coffee in her hand and one of my business directories on her desk,” Marcoline said. That was a few years and millions of cups of coffee ago. Despite the success she’s had, Marcoline isn’t taking anything for granted. Just two years ago, she applied for and won a yearlong Mentorship from the Erie Athena program. And now she’s looking for ways to expand and improve an already successful business. “I did a couple of things that failed,” she said. “It’s important to remember you’re not always going to win. Sometimes you are going to fail, but you have to keep looking and pushing to find the next thing.”
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ERIE 2015
6M | Erie Times-News | GoErie.com | Sunday, February 15, 2015
TIM SEDNEY: ‘We have something here that no one else has on the Great Lakes’
Bustling on bayfront
With his latest purchases, Rum Runners’ owner expands vision
ON THE WATER, AND ON LAND Tim Sedney’s ventures: ▀ Owner: Rum Runners Bar and Grill, east bayfront. ▀ Owner: Rum Runners Cove, foot of State Street. ▀ Co-owner, with business partner Gary Liebel and longtime employee Janis Guthrie: Lady Kate tour boat, O Danny O fishing charter, Scallywags piratethemed pleasure boat. ▀ Co-owner, with Liebel: land on which Rum Runners Bar and Grill sits, and two adjacent properties. ▀ Co-owner, with Liebel: Bruster’s ice cream shop, to reopen in March at 3100 W. 12th St., Millcreek.
By ED PALATTELLA ed.palattella@timesnews.com
ANDY COLWELL/Erie Times-News
Businessman Tim Sedney, 50, owns Rum Runners Bar and Grill, behind him at left, and is a member of a partnership that recently purchased the Rum Runners property and two adjacent parcels. defunct Lund Boat Works. Sedney had been leasing the properties from Lund Boat Works Inc., and the purchase let him complete a project that his late father and mother launched in 1976. The Sedneys that year bought what was the Northwest Marine property, including the land where Rum Runners Bar and Grill is now located. The Sedneys sold boats and ran a charter service on that property through their Bay Shore Marine and G.J. Sedney Yacht Sales and Charters. When the declining economy hurt those businesses, the family diversified in 1988. They opened Rum Runners Bar and Grill, modeled after a favorite
waterside hangout in Fort Lauderdale, Fla. After Jerry Sedney died at 51 in 1990, Rum Runners and the other two businesses filed for bankruptcy. Carol Sedney sold the Rum Runners Bar and Grill property to Lund Boat Works in 1991, and Lund immediately leased the land to the Sedneys for Rum Runners. Carol Sedney died at 73 in 2013. With the purchase in December, the property is under Tim Sedney’s control. He bought the parcels with his longtime business partner, Gary Liebel, and the two are working on nonresidential plans for the area, where Rum Runners Bar and Grill will continue to operate.
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able person as far as the waterfront is concerned,” Findlay said. “I suspect he has baywater in his bloodstream.” Sedney, a fan of Key West and other boating havens, said Erie is his favorite. “We have something here that no one else has on the Great Lakes — a protected harbor and the peninsula,” he said. “When you see people having fun and utilizing something you have created, it is special. And to see that on the waterfront — it is a unique community.”
E D P A L A T T E L L A can be reached at 870-1813 or by e-mail. Follow him on Twitter at twitter. com/ETNpalattella.
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“It is a good opportunity,” said Liebel, a senior vice president and financial adviser at Morgan Stanley. Liebel, 68, met Sedney when Sedney was 13, and Liebel bought a boat from Sedney’s father. Liebel and Sedney share an appreciation of Erie’s bayfront — and a vision to transform it into a retail mecca for boaters, tourists and locals. “A lot could be done on that waterfront that hasn’t been done yet,” Liebel said. Sedney’s strengths include his insight and commitment, said retired Erie radio personality Mark Guy Findlay, 72, who handles advertising for Sedney. “He’s Erie’s most knowledge-
Sedney’s businesses employ 130 people in summer. His financing comes from banks such as Marquette, ErieBank, First National Bank and Huntington Bank.
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Tim Sedney never stopped thinking about boats when he was growing up in Millcreek Township. He inherited his maritime fascination from his father, Jerry Sedney, a banker and boater who owned a marina on Erie’s bayfront. When Tim Sedney was in 10th grade at McDowell High School, hismotherand fatherpulledhim out of class so he could work as a mate on a Florida-bound yacht of a family friend. And at just 18, Sedney got his captain’s license for charter boats. In high school, Sedney said with a laugh, “I was the guy who had the boating magazine in my study guide.” “I grew up on the water,” he said, “which is why I have such a passion for the water.” That passion has flourished on the bayfront. The 50-year-old Sedney owns or co-owns such well-known attractions as Rum Runners Bar and Grill, Rum Runners Cove restaurant, the Lady Kate tour boat and the Scallywags pirate-themed pleasure boat. He formerly co-owned the Victorian Princess paddlewheeler. Sedney’s waterfront presence is set to grow. In December, in one of his biggest deals, he bought the Rum Runners Bar and Grill property on East Dobbins Landing and two adjacent properties, including the building that had housed the now-
ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 7M
SAAD ALBIDHAWI: ‘I believe I’m a lucky person. But I also help people out.’
American DREAM Continued from 1M
CHRISTOPHER MILLETTE/Erie Times-News
Saad Albidhawi looks for a tool at his Parade Street garage, Albidhawi Auto Service. The Iraqi immigrant has lived here since 1993. running. A few years after he opened, a fire closed the shop for four months. “It was very hard. Thankfully I had guidance from God and support from family and friends,” Albidhawi said. “I was not going to let anything take me down.” Albidhawi, a father of
three who became a U.S. citizen in 1999, has happily watched his shop grow into a success. Consistent business led him to increase the number of service bays from two to five. “Word got out in the neighborhood that I was friendly and helpful and
did good work at a reasonable price,” he said. Albidhawi has seen several others from his country, or immigrants from other countries, start a business here, only to struggle to keep it open and eventually close. “You need to be honest withpeople.Whenyoulose
the trust of one customer, people find out, and that’s it, you’ve lost the trust of everybody,” he said. “I believe I’m a lucky person. But I also help people out in the neighborhood. If they need a repair and don’t have the money, I’ve done repairs sometimes and send them on their
way. You get burned every once in a while, but in the long run, you gain trust, the word gets out, and you gain more business.”
G E R R Y W E I S S can be reached at 870-1884 or by e-mail. Follow him on Twitter at twitter.com/ ETNweiss.
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brothers were part of the civilian uprising against Iraqi leader Saddam Hussein, and they later fled their war-torn homeland for Saudi Arabia. Albidhawi said they ended up in a refugee camp that he estimated held upward of 200,000 people. “We lived like unfairly treated animals,” he said. “Not enough food. Hardly any medical help. It was a horrible experience.” Albidhawi and his brothers arrived in Erie in August 1993. Three days later, through the help of the International Institute of Erie, Albidhawi was working at a local plastics shop. His jobs changed over the years, including gigs cleaning local offices and as a truck driver. Albidhawi soon learned how the days and nights of a long-distance truck driver can be long and lonely. “I loved seeing the country and learning about the people, the culture,” he said. “But I wanted to have a family and open a business. I was single and wasn’t spending much. Every last penny was saved.” Albidhawi studied to become a mechanic and, in 1998, opened his auto repair shop on the city’s east side. There were challenging times immediately. His two brothers worked with Albidhawi unpaid for about a year so he could get his business up and
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8M | Erie Times-News | GoErie.com | Sunday, February 15, 2015
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SUNDAY
February 15, 2015
Annual economic report for the Erie region
ERIE 2015
SECTION
N
GREG WOHLFORD/Erie Times-News
DID YOU KNOW? There were more than 2,500 private ranches and farms raising bison in the U.S. in 2012. Those farms were raising a total of 162,000 bison, according to the 2012 USDA census.
The herd at Wooden Nickel Buffalo Farm in Washington Township has been limited to about 45 to 50 bison, owner Dan Korman says.
Buffalo
ROAM
POWERFUL POSITIONS:
Influential women have emerged as leaders in key economic and political posts in the region. Hear from four women on their roles. 5-6N
By RON LEONARDI ron.leonardi@timesnews.com EDINBORO — Dan Koman, 51, said he still has the energy, drive and passion to keep his Wooden Nickel Buffalo Farm operating for at least another 10 years. About 20,000 people annually visit Koman’s 135-acre spread at 5970 Koman Road near Edinboro in Washington Township. His grandparents bought the land in the 1920s. Three generations of his family operated it as a dairy farm until
1993, when Koman and his family began a transition to a bison farm. What began as a hobby and a need to eat healthier turned into a small business operation that has supplied grassfed bison meat to regional customers for 22 years. Koman estimated the majority of people who visit his farm do so to get a look at the bison. Getting visitors into the farm’s restaurant and gift shop is more difficult.
➤ Please see BUFFALO, 2N
ALSO INSIDE THIS SECTION:
!Snapshot of Erie County farming. 3N !How we gave: A look at the region’s charitable donations in 2014. 6N !Big projects are in the works. A look at what’s coming to the region. 8N
ERIE 2015
2N | Erie Times-News | GoErie.com | Sunday, February 15, 2015
DAN KOMAN: ‘The past two years, the weather has killed us, and farming in general.’
Buffalo still ROAM Continued from 1N
GREG WOHLFORD/Erie Times-News
Dan Koman, 51, started the Wooden Nickel Buffalo Farm on his family’s land in 1993. “It’s just a little niche business that we’re not going to get rich off,” he says. “I’m doing what I enjoy — farming and kind of making a little money.”
2,000
Average weight of an adult bison bull, according to the National Bison Association. A bison cow weighs about 1,100 pounds.
“If I had a nickel over the past 20 years for every car that drove up here and looked but never stopped, I’d be a millionaire,’’ Koman said with a laugh. Keeping the business going during the past several years has become more difficult, Koman admitted. “Every winter, we struggle trying to make enough money to carry us through the winter, just to pay bills,’’ Koman said. “It’s getting tougher and tougher. Just the way times are and the way our operation is. We’re so seasonal. The weather is killing us. The GREG WOHLFORD/Erie Times-News past two years, the weather has killed us, and farming in Part of the buffalo herd is shown at the Wooden Nickel Buffalo general.’’ Farm in Washington Township. The 135-acre farm draws about Koman’s farm usually 20,000 visitors each year, owner Dan Koman says. opens full time in early to Koman has kept his bison grain and silage, and we remid-April. It remains open dailythroughmid-November, herd in recent years at about alized we wanted to get into the all-natural, grass-fed situwhen the operation is scaled 45 to 50. “Each year, we’re raising ation.’’ back to three days a week, and processing about 15 of When his bison herd then two days weekly. Another popular aspect of our own bison, and we’re reached about 100, Koman his farm business is his annu- probably buying 15 more, said he realized he had to al corn maze, which is open whether it be live animals or downsize. “Unfortunately, with our from Labor Day through Hal- boxed meat,’’ Koman said. Koman estimated he an- market for the meat, I need loween. “We have to figure out how nually sells between 6,000 to triple or quadruple that we can adapt to the growing pounds and 10,000 pounds of number to keep up, but I don’t have the property to do changes,’’ Koman said. “We bison meat. “About 15 years ago, we it,’’ he said. “So we have to have a lot of transitional decisions to make over the next had close to 100 bison,’’ Ko- supplement buying animals couple years. I would like to man said. “But we realized and boxed meat to keep up get back more into the tours, that was too many for the with our demand.’’ Visitors to the Wooden the group tour atmosphere property. Health was a conand more bus groups, be- cern and not having enough Nickel Buffalo Farm and cause I like to educate peo- pasture area for the animals. We started off just feeding ➤ Please see FARM, 3N ple with the groups.’’
60,000
7
Approximate number of bison slaughtered under federal and state inspection in the U.S. in 2013, according to the group.
0.07
In pounds per person, the annual U.S. consumption of bison meat, according to the group’s estimates.
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 3N
Down on the farm ... with the average farm being larger than Erie Cemetery.
How Erie County stacks up:
Erie Cemetery: 75 acres
$500,000+: 1.4% $100,000-$49 $100,000-$499,999: $100,0 $10 0,000-$49 $499,999: $499,9 9,999: 10 10% % $50,00 $50,000-$ $50,00 $50,000-$99,999: ,000-$ 0-$99, 4.5% 4.5% $10,000-$49,999:
FRU I
108 acres
2
3,
Below $10,000:
68.3% Ranked Fourth
075 acre TABLE GE VE
* S*
Most farms: 50-179 acres.
* IES
33.9% is farmland
427 acre , BERR TS
16%
Ranked second
s
1
2,
!"% *"&#'$() 511,296 total land acres.
Farms value by sales
Ranked first in Pennsylvania
APES GR
s
About one-third of Erie County is farmland ...
Farmland usage
9%
4
8%
,9
Woodlands: 24%
18 acr e
s
Other uses: Pasture:
About 39% are valued at less than $1,000.
Cropland: 59%
Most recent data shown is from 2007. *Includes trees nuts. **Also includes melons, potatoes and sweet potatoes.
SOURCE: Census of Agriculture
CHRIS SIGMUND/Erie Times-News
Farm: Bison business those who buy his bison products come from within a two-hour radius of Edinboro, he said. “The Pittsburgh area is our biggest customer base,’’ Koman said. “I wish I had more volume to move down that way. I know the economy isn’t great, but there just aren’t enough people locally who want to spend the money on it.’’ Koman’s market for bison meat exclusively is the public. “I don’t have a consistent enough product volume to sell to restaurants, and that gets back to not having enough land and not having enough animals,’’ he said. “It’s just a big, vicious cycle. It’s just a little niche business that we’re not going to get rich off. I’m doing what I enjoy — farming and kind of making a little money.’’ Koman did not envision his bison operation be-
coming a business when it began in 1993. “When we started in 1993, I was on high blood pressure medicine at age 30,’’ Koman said. “I was 30, and I was already starting to have some problems. That’s kind of what triggered us into wanting to eat healthier. We were eating everything and anything; it didn’t matter. That’s how it started.’’ Koman said people have become more receptive to eating bison meat. “More and more people want to eat healthier, and they’re finding out that bison is it,’’ Koman said. Eating a healthy diet, including bison meat, has enhanced his family’s lives, Koman said. “We started to sell meat right out of the house freezer when we began the bison farm in 1993,’’ Koman remembers. “Once a few people did find out that we were doing it, that’s kind of how it started. Then we decided let’s build a store
and offer some gift items and the meat and see where it goes.’’ When that portion of the operation began to escalate, Koman started doing farm tours and field trips. “We started offering samples for the groups while they were here, and that kind of led into the restaurant part,’’ he said. Rising beef prices nationwide over the past few years have had no impact on Koman’s bison meat sales. “I haven’t noticed any difference,’’ he said. “People who are going to eat beef are going to eat beef no matter what. It doesn’t affect us any. People who are coming here to buy bison meat are buying because of the health benefits, not because of the price. I think when the beef prices go up, people just eat less beef.’’
R O N L E O N A R D I can be reached at 870-1680 or by e-mail.
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ERIE 2015
4N | Erie Times-News | GoErie.com | Sunday, February 15, 2015
POWER positions When Katrina Smith was appointed executive di-
rector of DevelopErie on Jan. 14, she became the latest woman to fill another key economic or political role in the Erie region. Smith will direct Erie County’s lead economic developmental agency after serving as the organization’s interim chief executive after the resignation of DevelopErie’s former Chief Executive John Elliott in October. Other influential women who have emerged as regional leaders include Brenda Sandberg, who took over as executive director of the Erie-Western Pennsylvania Port Authority on Oct. 31; Barbara Chaffee, president of the Erie Regional Chamber and Growth Partnership; and Erie County Executive Kathy Dahlkemper. “I believe all of us will work together to move the region forward,’’ Chaffee said.
KATRINA SMITH: DevelopErie Smith, 34, begins her tenure as DevelopErie’s chief executive after some personnel reshuffling after Elliot’s departure. “We have to get back and focus on our core areas,’’ Smith said. Those areas, she said, include real estate, redevelopment, business financing, nonprofit financing, industrial development bonds and grant administration. “To me, it’s about leadership and results,’’ Smith said. She joined DevelopErie in 2006 and previously held the roles of senior vice president and vice president of real estate. “In the last nine years, I’ve
CHRISTOPHER MILLETTE/Erie Times-News
Brenda Sandberg, executive director of the Erie-Western Pennsylvania Port Authority, braves the weather outside the authority’s headquarters in the former Cruise Boat Terminal on Erie’s east bayfront.
BRENDA SANDBERG: Port Authority DevelopErie CEO Katrina Smith worked primarily around 40-, 50- and 60-year-old men, and I’ve seen myself as being equal at the table,’’ Smith said. “But the bottom line is I have to prove myself like anybody else, regardless of gender. I hope my hard work and dedication have paid off.’’
Sandberg was appointed in August by the Port Authority’s board of directors to succeed retiring authority Executive Director Ray Schreckengost. “I honestly don’t look at it as gender-specific, but I am becoming more conscious of it,’’ Sandberg said. Sandberg attended an American Great Lakes Ports Association meeting in Cleveland in September. “One of the other port directors said, ‘How does it feel to be in a room full of men?’’’ Sandberg said. “They said they thought I was the first and only female port director on the Great Lakes. It was casual conversation. “My response is I have worked in many different
jobs and, to me, it’s not atypical,’’ Sandberg said. “I’ve been used to that for 20 years.’’ Before she was appointed to the Port Authority, Sandberg, 42, had been Erie’s economic development director since October 2011, and also previously served as executive director of the Erie Downtown Partnership and as a city zoning officer. Sandberg worked with Schreckengost for about seven weeks before his retirement. “One of our goals as an organization is to do some strategic planning with all of our operations and to determine how we can meet our goals and how they can be expanded,’’ Sandberg said. “We will look at all the properties we own and determine their highest and best use.’’
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 5N
BARBARA CHAFFEE: Erie Regional Chamber
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Barbara Chaffee, president of the Erie Regional Chamber and Growth Partnership
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Chaffee, 64, was appointed president of the Erie Regional Chamber and Growth Partnership in April 2011. The Chamber and Growth Partnership’s three divisions — commerce, economic development and growth partnership — promote the organization’s core mission of providing leadership to attract, retain and expand regional business. Chaffee said Smith, Sandberg and Dahlkemper “bring deep experience from a variety of opportunities.’’ “I do think that in Erie County and the region, we are seeing more women in leadership positions,’’ Chaffee said. “That whole makeup has changed. I have greater concern with female leadership as far as corporate boards across the country. I would like to see more women on the corporate board level. I believe strongly that a good mix of men and women — and diversity — is good.
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Erie County Executive Kathy Dahlkemper
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Kathy Dahlkemper, 57, who began her duties as Erie County executive in January 2014, has previously worked on projects with Chaffee, Sandberg and Smith. “Brenda is very committed to the region and is a great representative of Erie County and the Port Authority,’’ Dahlkemper said. “Katrina brings a great skill set for what is needed right now. She is very well versed on the real estate side, and that will serve her well in that new role.’’ Dahlkemper was elected in 2008 to the U.S. House of Representatives for the state’s 3rd Congressional District. During her two-year tenure, she served on agriculture, science and technology, and small business committees. Dahlkemper said Chaffee, Smith and Sandberg are “all truly committed to the vitality and future of the region and how we can work together to create something greater by using our individual organizations’ strengths.’’
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6N | Erie Times-News | GoErie.com | Sunday, February 15, 2015
ERIE 2015
MIKE BATCHELOR: ‘Local donors have built a significant resource for local charities.’
Giving in Erie strong
Support, investments help local foundation
BY THE NUMBERS The United Way of Erie County, 420 W. Sixth St., annually raises money for a campaign that goes directly to funding income, education and health programs designed to reduce poverty. Erie has some of the highest poverty rates in the state. The nonprofit agency’s fundraising totals:
By GERRY WEISS gerry.weiss@timesnews.com Erie’s long-standing reputation of being a generous community was bolstered by the role philanthropy and personal giving played across the region in 2014. Growth of investments and continued donor support helped the Erie Community Foundation distribute $11.2 million in 2014, an $800,000 increase over 2013. President Mike Batchelor said it was the second highest grant total in the foundation’s 80-year history. The foundation in 2014 also received $8.9 million in gifts, an increase of about $900,000 compared to 2013. Donor support has surpassed $7 million each year for 12 straight years, Batchelor added. “Over time, local donors have built a significant resource for local charities,” Batchelor added. The United Way of Erie County, a major player in the region’s battle against high poverty, raised more than $6.7 million in its 2013 fundraising drive — the largest tally since the nonprofit agency began raising money in Erie County in 1914. The $6.7 million collected was in “total community
FILE PHOTO CHRISTOPHER MILLETTE/Erie Times-News
FILE PHOTO ANDY COLWELL/Erie Times-News
WAYS YOU GAVE: At left, Mike Batchelor, president of the Erie Community Foundation, takes a donation over the phone on
Aug. 12, during a 12-hour fundraising blitz known as Erie Gives. The community donated more than $2.2 million for more than 300 local nonprofits, breaking the previous high 2013 total of $1.7 million. At right, Shannon Hart-Parry, of Millcreek Township, donates to the Salvation Army’s annual red kettle campaign in December outside Kmart, 2873 W. 26th St. In 2014, the nonprofit’s largest annual fundraiser collected $163,496, shy of its goal but still surpassing the 2013 total.
support,” the new format the United Way began using to tabulate its fundraising total. That figure includes grants, sponsorships and other additional resources. In December, the nonprofit reported the 2014 drive was off to an impressive start, and nearly 6 percent above what was collected by December 2013. The United Way’s recordbreaking fundraising total in 2013 beat the 2012 total
of $6.1 million, which at the time was the most in the local agency’s history. Money donated to the United Way campaign goes directly to funding health, education and income programs designed to reduce poverty. The United Way invests in nearly two dozen poverty-related projects, including Erie Together, the anti-poverty initiative, and Erie’s Future Fund, which
provides scholarships to hundreds of low-income children to attend quality prekindergarten education. According to a national study conducted in 2014, Erie County’s poor and middle class donated a larger percentage of their income to charity than the county’s wealthier residents. The county’s poorest residents, with an income of $25,000 or less, on average gave 7.2 percent to charity in
2012, while county residents with an income of $200,000 or more gave, on average, about 2.1 percent, according to the Chronicle of Philanthropy, the nation’s leading news source in reporting on the nonprofit sector. The data was from the Internal Revenue Service and was based solely on tax returns filed by people who itemized their deductions,
2013 $6.7 million
2012 $6.1 million
2011 $5.9 million
2010 $5.6 million
2009 $5.2 million SOURCE: The United Way of Erie County
➤ Please see GIVING, 7N
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ERIE 2015
Sunday, February 15, 2015 | Erie Times-News | GoErie.com | 7N
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WAYS YOU HELPED: At left, volunteer Marvin Meyers picks up meals to deliver to
clients for Metro-Erie Meals On Wheels in May. The service, which delivers meals to senior citizens, is funded in part by the United Way of Erie County. At right, Delvon Henderson works on a preschool class activity in May at Early Connections, a United Way-funded learning center for youth from low-income families.
Continued from 6N including their charitable gifts. The most recent year for which statistics were available was 2012, according to the Chronicle report. Erie County’s giving patterns mirrored national trends: Wealthier people give more money to charity than the poor and middle class but a smaller share of their income. Erie County residents gave $80.5 million to charity in 2012, the study said. Of that $80.5 million, more than $51 million was given by people with an income of $100,000 or more. County residents with an income of $25,000 or less gave $2.3 million to charity in 2012. Erie County residents in 2012 gave, on average, 2.4
percent of their income to charity. The Erie Community Foundation, which links charitable endowments from donors to needs in the region, awards grants four times a year to groups seeking financial assistance in community development, education, health and arts. The foundation makes grants from earnings on more than $200 million of permanent charitable endowment funds and by processing specified gifts. The foundation utilizes a competitive application process to award unrestricted income. Income from endowments designated to particular charities is distributed according to the wishes of the original donor, foundation officials said. “Luckily,
many donors have created unrestricted endowments at the foundation, which gives us the ability to respond to current needs such as high violence and multigenerational poverty,” said George Espy, the foundation’s vice president of community impact. Espy said a few examples in 2014 of signature projects made possible by unrestricted endowment income include $112,500 to support Erie Together, the region’s anti-poverty project, and $100,000 for regional career-planning projects.
G E R R Y W E I S S can be reached at 870-1884 or by e-mail. Follow him on Twitter at twitter.com/ ETNweiss.
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ERIE 2015
8N | Erie Times-News | GoErie.com | Sunday, February 15, 2015
Bolstering 4 pillars of region’s economy
H ARBOR CREEK
B aTOWNSHIP yfront Connecto BEHRE ND r CAMP US
Four major building projects this year in Erie County could help foster a more vibrant economy through investments in four important pieces of the economy.
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Education $16.5 million Advanced Manufacturing and Innovation Center
log Techno Drive
Work on the he center is expected ed to be comple com pleted ted by fall. ll. completed
Building innovation Penn State Behrend and DevelopErie are building the Advanced Manufacturing and Innovation Center at Knowledge Park to bring together businesses, faculty members and students to work together on applied research-and-development teams. Erie County lags in high-tech employment and patent activity, according to a study for the Innovation Collaborative by Cleveland-based Jumpstart. “These projects lead to patents,” said Ralph Ford, associate dean for industry and external relations and director #@ ;A%% 4919A -A:?A%",< 4$:##2 #@ 8%=7%AA?7%=* /%" 9:A <$:##2 122#)< $#'!1%7A< working with the university to retain rights to the intellectual property they develop jointly.
Jordan dan Road Road
The 60,000-square-foot center will have labs and classrooms for students, as well as space for employers.
Classrooms
Employers
Labs
SARAH CROSBY/Erie Times-News
Employer
View from main entrance
BOSTWICK DESIGN PARTNERSHIP (2)
Health care $42 million LECOM Senior Living Center
Transportation Up to $70 million EMTA expansion
Tourism $53.4 million Courtyard by Marriott
Senior suites
Room to grow
The 151,000-square-foot skilled nursing facility at 5515 Peach St. is expected to open in June.
With construction underway, the hotel could open in 2016.
Millcreek Community Hospital
Transforming transit The first phase of the project is expected to be completed by June. et Stre 12th t s Ea et Stre 4th 1 t Eas Lovell B Place line A Rail
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Hotel: $45.8 million
Parade Street
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Parking garage: $7.6 $7. 6 million million mill ion ERDMAN CO.
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/< '#?A #@ 9:A $#6%9&,< 010& boomers are retiring and the older =A%A?197#%,< 27@A <!1%< 1?A 0A7%= extended, Lake Erie College of ><9A#!19:7$ .A"7$7%A,< %A) @75A+<9#?& facility aims to meet an important need. It will have as many as 18 individual suites that include a private bathroom, shower, bedroom and cabinetry for clothes. The suites are part of eight “neighborhoods” that are designed to have a communal feel.
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Visiting more The number of tourism-supported jobs in Erie County has grown from 11,000 in 2001 to 16,000 in 2012, according to a study by the Pennsylvania nnsylvania Office of Travel, Tourism ourism and Film.
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already rooms, Erie County Cou alrea al ready dy has ab about out 4, 4,000 000 ho hotel tel ro rooms oms,, but but #%2& #%A :#9A2 $6??A%92& A(7<9< #% 8?7A,< ,< 01&@?#%9* 3:A 191-room om hotel planned for the property just west of the Bayfront Convention Center will make more hotel rooms available at the Convention Center, which meeting and convention attendees have requested.
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Currently being built
1. Lift parking
The Erie Metropolitan Transit /69:#?79&,< !21% )722 '#?A 9:1% double the size of its bus facility #% 8?7A,< A1<9 <7"A* 3:A 8.3/ says the old facility, built in 1968, is too small for its needs. The planned public parking garage could serve people heading downtown to eat, be entertained or to ride Amtrak.
garage
2. Maintenance building
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garage; operations building
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CHRIS SIGMUND/Erie Times-News
SOURCES: Penn State Behrend; DevelopErie; LECOM; Erie County Convention Center Authority; EMTA; Erie Times-News archives
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ERIE
2015
Annual economic report | Sunday, February 15, 2015
INSIDE SECTION K:
! Lord Corp. a win for region. 4K ! DevelopErie status report. 5K ! Waterford snack factory already is looking to grow. 6K
INSIDE SECTION L:
! GE: Full steam ahead. 1L ! Area tourism growth evident. 2L ! Manufacturing going strong. 9L ! Region’s top employers. 10L
Potato chips pouring off conveyors at a snack food plant in Waterford are a visible sign of a comeback year in 2014. But they aren’t the only indication that our increasingly diverse economy is moving in the right direction. Challenges lie ahead, but statistics and stories suggest 2015 could be better than the year before.
INSIDE SECTION M:
! Immigrant business owner living the American dream. 1M ! Do we lack entrepreneurs? 2M ! Entrepreneurs’ stories. 2-5M
INSIDE SECTION N:
! Where the buffalo still roam. 1N ! Women hold key positions. 4-5N ! How the region gave back. 6N ! Big projects on the horizon. 8N