Region's Business 10 January 2013

WHY TURNPIKE TOLLS KEEP RISING NHL LOCKOUT COST CITY REAL DOLLARS

STATE FACES ‘LOTTERY CLIFF’ THAT THREATENS SENIORS

REGION’S BUSINESS BUSIN

PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

2013: YEAR OF THE

INNOVATOR

Multiple factors have aligned, setting the stage for a breakout year for entrepreneurialism and innovation across the Philadelphia area.

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JANUARY 10, 2013

10 JANUARY 2013

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CONTENTS

18

3

It’s the year of the innovator

The pieces are in place for Philadelphia to be come the “it” spot for entrepreneurs and innovation. It’s a trend that could dramatically reshape the region for years to come. !

22

Why First Round moved to Philly

WE ARE CRIPPLING OUR FUTURE AS WELL AS OUR PRESENT BY FAILING TO DO WHAT IS NEEDED TO DEAL WITH THE SHORT RUN.’

Josh Kopelman’s decision to bring First Round Capital into the city sent a strong signal about the city’s potential to nurture the innovation economy . !

20 Pennsylvania must 28 avoid ‘lottery cliff’

Make room for the n3rds !

Where will Philadelphia find space for all these innovators?

Saying ‘Thank you’ can help the bottom line

Why are critics, in particular a certain union, putting up such a fight against privatizing the state’s lottery system?

!

10

NHL lockout cost plenty

Put the sports aspect aside for a moment and there were some real dollars lost during the extended work stoppage. !

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ECONOMIST PAUL KRUGMAN

PRG welcomes National Penn Bank to their newest center city location at the corner of 21st and Market. Occupancy is scheduled for the Spring 2013 while the apartments above have begun delivery, totaling 282 units. PRG would also like to thank Metro Commercial Real Estate and Joe Dougherty for their efforts representing the Tenant.

Gifts, money and other incentives are nice, but the epxression of sincere gratitude can ignite a change in your organization that can drive sustainable results. !

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EDITORIAL DIRECTOR Karl M. Smith ASSOCIATE EDITOR Terrence Casey CONTENT TEAM Brandon Baker CONTRIBUTORS Karen Fratti, Don Lee ADVERTISING DIRECTOR Larry Smallacombe DIRECTOR OF BUSINESS DEVELOPMENT Jim Bauer

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10 JANUARY 2013

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EDITOR’S DESK

Year of the Innovator, One Week at a Time

Karl Smith is the Editorial Director for Region’s Business.

You can contact him at ksmith@regionsbusiness.com.

We’re generally excited about each issue of Region’s Business, but this week we are at a whole different level.

That’s because we’re kicking off our year-long focus on innovation in the Philadelphia region. We’ve anointed 2013 as The Year of the Innovator and that’s going to be a major focus for us throughout the year.

We believe - strongly - that the stage is set for a breakout year for Philadelphia in regard to startups, entrepreneurialism and innovation. This week’s cover story summarizes that nicely and over the next several months, here are some of the ways we’ll keep you abreast of this exciting movement.

Success stories: Our region has plenty of them and we’ll share

them, with the hope that budding innovators can learn from the success of others.

Diary of a startup: Headlines are one thing, but the story of a startup is made up of a bunch of little things happening over time.

We’re going to follow some local startups for a few weeks at a time to get a perspective on ongoing challenges, from the inside.

Capital seekers: All businesses need money and digging into personal savings and hitting up friends and relatives can only take ideas so far. At some point, an influx of cash is needed, whether it’s for expansion, development or distribution. We’ll ask up and coming businesses to explain why their needs are a smart investment.

Resources: Every innova-

tor needs help with something.

Often times, there are resources available if you just know where to look. We’ll do the leg work and look for you.

Legislation: State and federal laws, particularly taxes, often have significant and unintended consequences on small businesses, especially startups. We’re tuned into legislation at the local, state and federal levels and will keep you informed.

Commentary, inspiration and guidance: The Ideas column remains one of my favorite parts of the Region’s Business print edition. I love the variety of people who’ve contributed and the wide range of subjects they’ve tackled. We’re looking to focus these columns on issues relevant to innovators with practical

advice, motivation and thoughtprovoking commentary.

There will be more - much more - of course, because any project like this tends to be a constant work in progress. We’ll add, subtract and rebuild things on the fly, in the true spirit of innovation. But the bottom line is this - it’s an exciting time to be in the Philadelphia region; 2013 is going to be a big year and we’re anxious to be a part of what is going to be a very special time.

Strap in folks! * * * We’re loving the attention we’re getting on the web, both on the new and improved website (regionsbusiness.com) and on Facebook. If you haven’t done it already, check out both and tell us what you think.

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PUBLIC-PRIVATE PARTNERSHIPS

Goldman Sachs Small Business Initiative Arrives in Philadelphia Philadelphia Wednesday partnered with Goldman Sachs in the investment firm’s 10,000 small businesses program.

Mayor Michael A. Nutter touted the partnership as an initiative to help create jobs and economic growth by providing small businesses with business education, support services and access to capital.

Community College of Philadelphia will deliver the business education portion of the program, and Philadelphia Industrial Development Corporation (PIDC) and Community First Fund will originate loans.

Goldman Sachs and the Goldman Sachs Foundation are committing $20 million to the program in the greater Philadelphia area, half of that for the loan program.

“This program is the latest in a series of economic development initiatives to help businesses start, stay and grow in this city,” Mayor Nutter said in a press release.

The program is currently operating in Chicago, Cleveland, Houston, Long Beach, Los Angeles, New Orleans, New York and Salt Lake City.

John F.W. Rogers, Executive Vice President of Goldman Sachs and the firm’s chief of staff said the program “is a good fit for Philadelphia because of the city’s strong local leadership, engaged partners and economic need in the small business sector.”

More info: www.ccp.edu/10KSB.

WEEKLY BRIEFING

Health Department Report: Hydro Fracking Can Be Safe A New York Health Department report written last year concluded that the gas drilling process known as hyrdo fracking is safe when drillers follow recommended guidelines, WNYC reported.

Pennsylvanians opponents to drilling have argued that the fracking process could be potentially dangerous to area residents, but according to the report, “significant adverse impacts on human health are not expected from routine HVHF (hydro fracking) operations.”

The New York Department of Environmental Conservation, whose recommended guidelines reportedly make fracking safe, argued that the report is outdated and incomplete.

GERRY DINCHER

“The document is not a health assessment, is nearly a year old, and does not reflect final DEC policy,” said DEC spokeswoman Emily DeSantis in a statement. “The final SGEIS will reflect the review currently underway by DOH and its outside experts.

ENERGY

Business owners applying for a state business loan through any of five programs can ignore the upfront fee and receive a lower rate, Gov. Tom Corbett announced this week.

Interest rates will be at 1.5 percent and the fee will be waived until April.

NOTEWORTHY

Burch Named Billionaire

Fashion designer Tory Burch, born in Valley Forge, Pa., will be named to the 2013 Forbes World’s Billionaires list in March.

After Ms. Burch’s ex-husband sold part of his share of Tory Burch LLC, the company was valued at $3.5 billion, Forbes reported, making Ms. Burch’s 28.3 percent share worth $1 billion.

Ms. Burch first launched a line of $195 ballet flats in 2006.

Discovery Lab CEO Resigns

EXECUTIVE BOOKSHELF

Shale Coalition Responds to Film ‘Promised Land’

Report: Natural Gas Won’t Eliminate Need for Fossil Fuels

When the movie Promised Land opened in theaters across the nation January 4, the Marcellus Shale Coalition (MSC) launched a campaign in Pennsylvania theaters and via social media to respond.

The MSC sponsored 15-second advertisements to run during movie previews, highlighting its Learn About Shale platform (www.learnaboutshale.org) and asking viewers to submit their own questions about natural gas production.

Peer-reviewed scientific journal Climatic Change recently released a report claims that while the recent discovery of an abundance of natural gas will ease nations off coal, it will not allow the nations to live without fossil fuels, NPR’s StateImpact reported.

The study, “Climate consequences of natural gas as a bridge fuel,” by Michael Levi claims the following, according to the NPR report: “Collectively, these results suggest that it may be useful to think of a natural gas bridge as a potential hedging tool against the possibility that it will be more difficult to move away from coal than policymakers desire or can achieve, rather than merely (or primarily) as a way to achieve particular desired temperature outcomes.”

STATE BUSINESS PROGRAMS

Corbett: State Loan Program Application Fees Temporarily Waived

No conclusions should be drawn from this partial, outdated summary.”

Meanwhile, the Environmental Protection Agency is reviewing Pennsylvania data as it works on its own fracking study, to be released next year, according to StateImpact

5

John Cooper has been named CEO of Warrington, Pa.-based Discovery Laboratories Inc. The former executive vice president and chief financial officer will now take on the roles of president, CFO and member of the board of directors.

Bike Share Deadline Nears The mayor’s Office of Transportation and Utilities has set a deadline of January 14 for business model proposal for a city bike sharing program.

The city hopes to have the program in place by 2014, and $3 million has already been put aside for the project.

Philadelphia was recently named the fouth-mostbikable city in the nation by website Walk Score.

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10 JANUARY 2013

WEEKLY BRIEFING: EDUCATION

REGIONSBUSINESS.COM

GRANTS

CONTRACT NEGOTIATIONS

Hite Unveils Plan for City’s Schools

Neshaminy Agreement ‘Within Reach,’ But Issues Remain

Philadelphia’s new superintendent William Hite released the details of his plan to improve the district’s academic and financial performance.

The district’s financial picture is bleak.

According to the TheNotebook.org: “This year, the District borrowed $300 million to pay its bills. Officials say they face a cumulative deficit of $1 billion by 2017-18 unless harsh austerity measures are taken now.”

Hite’s plan includes shuttering more than three dozen schools and he will reportedly seek steep concessions from teachers in upcoming contract negotations.

According to TheNotebook.org, he said“If you’re a teacher, it’s going to be a tough conversation.”

Reports indicate that there may soon be a contract agreement in Bucks County’s Neshaminy school district.

The head of the teachers’ union told WHYY’s Elizabeth Fiedler that an agreement was within reach, but that several issues still needed to be worked out.

Patch.com reports that, for its part, the school board presented its final offer to the union. After a presentation last week, Patch reports the union did not vote on the offer.

According to the Commonwealth Foundation’s OpenPaGov.org website, the average Neshaminy teacher salary was $80,142 in 2009. The beginning salary was $40,950;the highest salary was $144,572.

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Biomanufacturing Center Collaborative Receives $2.7M Grant According to John George at The Philadelphia Business Journal, an alliance that includes local community colleges received a $2.7 million grant from the National Science Foundation.

George reports that The Northeast Biomanufacturing Center and Collaborative (NBC2), the grant recipient, includes Montgomery County Community College in Blue Bell and Bucks County Community College in Newtown.

Schools from five other states are also members.

10 JANUARY 2013

REGIONSBUSINESS.COM

PENNSYLVANIA LOTTERY

Union: Privatization Could Be Costly HARRISBURG — Pennsylvania’s administration is looking to win big off of a pursuit to privatize the Pennsylvania Lottery, estimating as much as $34 billion in 20 years of profits from lone bidder Camelot Global Services.

But public-sector union officials representing 174 state lottery employees said Tuesday that the state doesn’t need to look to a private manager to fulfill its goals of larger profits.

In a proposal to retain control of the Pennsylvania Lottery, the American Federation for State, County and Municipal Employees Council 13 said that keeping the Pennsylvania Lottery state-run can generate at least $1.5 billion more in profits than Camelot’s proposal.

AFSCME criticizes the private management agreement the administration is considering with Camelot, saying that it could end up costing taxpayers hundreds of millions of dollars if Camelot fails to meet its revenue estimates.

AFSCME’s report asserts that Camelot’s expansion proposals, like introducing Keno and online gaming, would be more profitable under a publicmanagement agreement because they could be operated without the costs of paying a private manager.

— PaIndepedent.com

WEEKLY BRIEFING

Blatstein Unveils Tower Place Developer Bart Blatstein formally cut the ribbon on the latest building block in his slow but steady transformation of North Broad Street: Tower Place, the new 204-unit luxury highrise apartment complex known until two years ago as the Philadelphia State Office Building.

From groundbreaking to opening, the $70 million gutting and rebuilding of the State Office Building was completed in 11 months.

Save for an inscription in the lobby, all traces of its former occupant have been erased and replaced with 17 floors of one- and two-bedroom apartments, spacious and smartly equipped, with 11 units on each floor.

Make that all traces save one. The former Governor’s Office suite on the penthouse floor has been preserved with its original paneling and spectacular city views; it will serve as a common area tenants

View of a sample living room

can use for relaxation and entertaining. Other building amenities include a fitness center, private theater room, business center and 24-hour concierge service with coffee, tea and Continental breakfast daily.

According to Tower spokesperson Frank Keel, the building is already 10 percent leased after being on the market for less than a month with no fanfare beyond word of mouth.

“This is just one part of our $1 billion commitment to North Broad Street,” Mr. Blatstein said in remarks at the ceremony.

That commitment began with the Avenue North residential-commercial project on the Temple University campus and

PHILADELPHIA REAL ESTATE BLOG

includes a proposed $700 million entertainment complex just to the south incorporating the former Inquirer building.

The renovated State Office Building is the first phase of the overall Tower Place project. Phase Two will include a second, 20-story, 170,000-squarefoot building including an 18-story, 215-unit apartment wing along 15th Street and a two-story, 80,000-square-foot retail building along Spring Garden Street.

Total cost of the second phase is estimatd as $110 million and expects to complete the project within five years.

— Philadelphia Real Estate Blog

TECHNOLOGY EXECUTIVE BOOKSHELF

City Taps Director of Civic Technology The city’s 311 app project manager is now its first Director of Civic Technology, TechnicallyPhilly.com reported.

The position is not seen within any other municipal IT team in the nation, according to the report.

Tim Wisniewski’s responsibilities will include working work with the civic hacking community to further the city’s emphasis on open data.

He’ll also work concurrently with other city agencies to streamline government, according to the announcement.

Residential Development Planned for Science Center The University City Science Center recently announced it will become a high-end residential development at 3601 Market Street.

The proposed 400,000-square-foot building will mark the first time in the Science Center’s 50-year history that it will offer residential accomodations in order to extend the Science Center community to become a place to “live, work and play,” according to a release.

Construction will begin in the fall, according to a release.

A rendering of 3601 Market Street.

9

DEVELOPMENT

Philadelphia Receives Planning Award Philadelphia’s Integrated Planning and Zoning Process will receive the 2013 National Planning Excellence Award for a Best Practice from the American Planning Association for its innovative approach at leveraging the synergy between citizen education, planning, and zoning reform.

The Best Practice award is for a specific innovative planning method or practice that yields lasting values in the community.

“The Philadelphia City Planning Commission (PCPC) has created a unique and effective process that is fully transferable to other planning organizations, particularly when planning and regulatory activities occur simultaneously in a short period of time,” said Ann C. Bagley, FAICP, 2013 APA Awards Jury chair. “Their approach demonstrates how education results in policy reform that leads to innovative regulatory changes that in turn results in implementation of the community vision and plan.”

The PCPC coordinated three distinct planning activities — the Citizens Planning Institute, Philadelphia2035 (the city’s comprehensive plan), and a new zoning code and map revision.

Individually, these activities educated hundreds of citizens and professionals, and engaged thousands in envisioning the future of Philadelphia and improving the way development is regulated.

(PHILADELPHIA CITY PLANNING COMMISSION

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10 JANUARY 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING

CONSTRUCTION

Toll Brothers Announce New President Toll Brothers, Inc., the nation’s leading builder of luxury homes, recently announced the promotion of Richard T. Hartman to the position of President and Chief Operating Officer.

Mr. Hartman, 56, was promoted to Executive Vice President and Chief Operating Officer in January 2012.

PHILANTHROPY

Bloomberg Group Donates $3.3M to Philadelphia Bloomberg Philanthropies and Living Cities for Financial Empowerment (CFE) Fund recently announced it was giving a $3.3 million Financial Empowerment Center grant to Philadelphia and four other cities to replicate New York City’s model.

The model provides free, one-on-one financial counseling by trained professionals to low-income residents both at new local Financial Empowerment Centers and by integrating counseling into the delivery of municipal services.

Send your business new to Associate Editor Terrence Casey at tcasey@regionsbuisness.com.

NHL Lockout Weighed On Area Businesses, Employees

BY ED MILLER

LOCKED OUT

NHL’s Economic Impact

113

Days the lockout lasted

After 113 days, the 20122013 National Hockey League lockout came to an end January 6 when the NHL and the NHL Players’ Association shook hands on a new collective bargaining agreement.

But the loudest cheers likely came from neither the players nor the owners (or even fans, for that matter); those who benefitted most from the return of hockey are the NHL-related businesses and employees.

The owners had plenty to fall back on, and don’t worry about the players; they earned escrow checks averaging $204,000, based on the average league salary of $2.55 million last season.

It’s the blue collar workers that were once again taking the biggest hit.

Take Wells Fargo Center employees for instance: The arena depends on hundreds of employees to serve the 19,000-plus fans who pack its doors for a total of 46 NHL preseason and regular Philadelphia Flyers games from September until April, and that doesn’t include the playoffs.

The only silver lining for arena employees was that the Wells Fargo Center still hosts a multitude of events during the winter — including 76ers basketball, concerts and the circus.

Some NHL-only facilities, such as Buffalo’s First Niagara Center, don’t have 41 basketball games to fall back on during the winter months.

“It’s tough to lose the daily schedule with the absence of the NHL. It costs me about $400 a month; even though the joint has brought in addi-

$2.55M

Average salary in the NHL last season

19,000

Fan capacity of the Wells Fargo Center

46

SHINYA SUZUKI

tional events since the Flyers aren’t playing,” said a Wells Fargo Center ticket attendant who wished to remain anonymous.

Lost hotel stays and restaurant charges were also a direct result, causing a downgrade on the amount of employees needed nightly.

Xfinity Live, the closest entertainment and dining hub to the arena, opened its 60,000-square foot indoor mini-mall of businesses last March and was packed with a sea of orange during last season’s playoff run.

The attraction cost nearly $50 million to build and created 400 permanent jobs.

The entertainment center declined to comment on the fluctuation of sale during the lockout, simply stating: “Xfinity Live is doing very well.”

The Boston Business Journal reported that the lockout was costing Boston — a market similar to Philadelphia — businesses between $850,000 and $1 million in revenue per home game. That’s a sizeable chunk throughout an eightmonth span.

The city itself also lost out on wage taxes. When the Flyers aren’t playing, wage taxes from the team’s projected $66 million payroll are lost. Players who live in the city pay 3.9 percent in city wage tax, while the ones who live outside pay 3.5 percent. That would have added up to about $1.3 million if the lockout had lasted the entire season, according to Flyers beat writer Sam Carchidi of Philly.com.

The Pro Image — a national chain, with three area stores — has certainly taken a hit.

Dan Collelouri, an employee at the store’s Montgomeryville location admits that sales of Flyers merchandise were down and the lockout hurt holiday sales.

“I have definitely noticed a drop in sales, especially in our Northeast Philadelphia store, likely because of its location,” Mr. Collelouri said. “People are buying a lot less Flyers stuff at this point than last year, even with the holidays approaching, but surprisingly they’re still outselling the Phillies.”

Regular season games played in Philadelphia normally

50.8

Percent of 2012-13 games canceled by the lockout

625

Games canceled

1,230

Total NHL games originally planned for 2012-13

$20M

The amount of money lost daily by the NHL

$10M

The amount of money lost daily by the players

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MONDAY APRIL 9, 2012 REGIONSBUSINESS.COM

EXECUTIVE BOOKSHELF

WHO TO FOLLOW

@IndyHall “We are a community of people who could work from anywhere but choose to work together, more productively, here at Indy Hall.”

RT @IndyHall: Who’s joining us for a Night Owls work session tomorrow night?

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QuickBooks Mobile

Inspections to be Posted Online

Peter Lynch is America’s No. 1 money manager. His mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.

Now, in a new introduction written specifically for this edition of One Up on Wall Street, Lynch gives his take on the incredible rise of Internet stocks, as well as a list of 20 winning companies of high-tech ’90s. That many of these winners are low-tech supports his thesis that amateur investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter daily.

— Amazon.com

You already use QuickBooks to help run your small business, so if you can handle a smartphone, you need the QuickBooks app (free on Android and iOS).

This app allows you to sync with your desktop version of QuickBooks as you process receivables and payables, address payroll, track inventory and create reports.

The state of Pennsylvania will post the results of all restaurant inspection online by the end of 2013, the Pennsylvania Department of Agriculture recently announced.

Annually, about 60,000 inspections are conducted by communities who post the results online, according to The Associated Press.

An additional 40,000 inspections are conducted by the Department of Agriculture, who then posts it on its website, www.agriculture. state.pa.us.

The goal this year is to aggregate all of the results from individual municipalies on the Department of Agriculture website.

GOTTA-HAVE-IT GADGET

Thermador Freedom Induction Cooktop One look at the Thermador Freedom Induction Cooktop ($5,000), and you’ll struggle to appreciate your gas range anymore.

The cooktop senses the size and placement of any pot or pan placed on its surface and directs heat to exactly that location.

10 JANUARY 2013

REGIONSBUSINESS.COM

DEALBOOK

13

NOTEWORTHY

RETAIL

REAL ESTATE

RETAIL

Trevose’s Broder Bros.

Acquires Denver Group

BGC Partners Acquires Phila.’s Smith Mack

Locally-Connected Groups Bidding for Hostess Brands

Bala Consulting Buys NY Firm

Trevose, Pa.-based Broder Bros., Co., the largest distributor of imprintable apparel in the country, announced it has acquired Denver-based Imprints Wholesale. Terms of the deal were not disclosed.

Norman Hullinger, CEO of Broder Bros., said, “This acquisition is important to us and we are committed to the expansion of Broder Bros. to serve our growing market.

“We are pleased to have (Imprints Wholesale CEO) Scott Lynes and his Imprints team join us at Broder. They have built a well-deserved reputation for strong customer service in the regions they serve and we plan to maintain the best of their business and integrate it across our national platform where appropriate.”

Imprints Wholesale offers imprintable apparel and products in the Rocky Mountain region.

Philadelphia real estate services company Smith Mack was acquired by BGC Partners last week, the companies announced. Details of the transaction were not disclosed.

Smith Mack has been a partner of Newmark Grubb Knight Frank since 2009.

Flowers Foods Inc. and Grupo Bimbo SAB are both in discussion with Hostess to acquire a number of the bankrupt company’s brands for up to $350 million, according to a Wall Street Journal report.

Grupo Bimbo has its United States division headquartered in Horsham, Pa. Flowers Foods bought Tasty Baking (maker of Tastykake) in 2011.

Details will likely be revealed next week.

Quantum Buys Texas Company

ACCOUNTING

ParenteBearde Acquires Presscott Associates Accounting firm ParenteBeard, of Philadelphia, acquired Presscott Associates, a health care management consulting firm, the Philadelphia Business Journal reported.

Presscott will operate as a ParenteBeard division under its own name.

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Bala Consulting Engineers acquired Critical Solutions and Innovations, the company announced. A new consulting engineering firm, Bala | CSI will open in New York.

The two companies are already working together on a number of Superstorm Sandy recovery projects, according to a statement from Bala Consulting.

Dublin, Pa.-based Quantum Clean acquired Texas semiconductor parts cleaning business Advent Cleaning Technology, Inc. Terms of the deal were not disclosed.

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10 JANUARY 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Councilmen’s D.C. Mission: City Manufacturing

Timothy Holwick is a freelance writer covering Philadelphia government.

Find more coverage at citycouncilmatters.com.

CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com.

Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

In December 2012, Councilman Bobby Henon and Councilman David Oh traveled to Washington, D.C. to seek support for Philadelphia’s manufacturing industry.

The target for their visit was the relatively new White House Office of Manufacturing Policy.

The councilmen met with representatives of the Commerce Department, National Science Foundation and the Department of Labor to begin a long lobbying process for federal support for Philadelphia’s manufacturing companies.

The White House Office of Manufacturing Policy was created in 2011 to coordinate President Barack Obama’s Advanced Manufacturing Partnership and has the mandate to aggressively implement the administration’s priority manufacturing initiatives. The three major tenets of the President’s Plan to Revitalize American Manufacturing are (1) enabling innovation, (2) securing the talent pipeline, and (3) improving the business climate.

When Councilman Henon was running for council, he realized there were clean, advanced manufacturers operating in what would become his district — the 6th district, which generally includes Northeast Philadelphia.

He has said he feels strongly about the manufacturing sector, which are a bigger part of the fabric of city neighborhoods than many realize. Some manufacturers are not off in a warehouse district or down by the river, but within neighborhoods, employing city residents.

At first, Councilman Henon was skeptical of the White House Office of Manufacturing Policy. He thought it may have been a stunt as President Obama was preparing for the 2012 election and “jobs” was one of the main buzzwords.

This suspicion was bolstered by the Policy Office’s complete

lack of funding.

Councilman Henon was already out looking for help.

Flying to Chicago and Pittsburgh to speak with manufacturing policy groups, he was looking for guidance on how to do more than just talking about creating jobs.

Recently, the Policy Office received approximately $1 billion in potential funding to get serious about improving the U.S. manufacturing industry as a job creator.

Not surprisingly, this development convinced Councilman Henon to head to Washington, D.C. and meet with representatives of the Policy Office and other relevant federal administrations. He invited Councilman Oh along as he felt that this initiative merged well with Councilman Oh’s global efforts to bring more talented candidates and jobs to Philadelphia.

Councilman Henon now refers to his efforts as the Manufacturing Matters Initiative. He is already working with Mayor Michael Nutter and hopes to garner further support from his colleagues.

Councilman Henon believes that Philadelphia

has the infrastructure to be an example to other cities as to what a flourishing manufacturing sector looks like. He will lobby hard to convince the Policy Office that Philadelphia’s growth opportunities are worthy of its support.

Councilman Henon hopes soon to have announcements clarifying the scope of the collaboration on the Manufacturing Matters Initiative.

Meanwhile, he continues his usual attention to the manufacturing sector with biweekly tours of city manufacturing plants. By Councilman Henon’s count, Philadelphia has more than 1,100 manufacturers employing more than 30,000 Philadelphia residents.

One of his major observations has been the technological advancement of some of the plants, which now utilize computers for detailed, real-time tracking of their efficiency and output. In order to operate these types of plants, workers who can at least operate basic technology are required.

“The biggest challenge, every manufacturer has said, is having an educated work force,” Councilman Henon said.

He has met with the School District of Philadelphia as part of his Initiative and insists, “We have to be thinking big picture, not just public schools, but also community colleges” and other outlets for providing training to make Philadelphia residents competitive for manufacturing jobs.

The formula of supporting American companies to create jobs for American residents is as ubiquitous as any other political platitude. However, so many of these entities, such as the White House Office of Manufacturing Policy, are created to back up campaign promises but quickly disappear from the public radar.

Councilman Henon, along with the mayor and likely other private and public collaborators, is providing a firsthand view of city government fighting for those benefits for their residents.

His initiative started with knocking on doors in Northeast Philadelphia, trying to win his own election, and now added a new chapter with a personal visit to the nation’s capital.

It is hard not to be interested in where Councilman Henon’s efforts take him next.

10 JANUARY 2013

CAPITOL REPORT

REGIONSBUSINESS.COM

State Spent $690M on Unemployment Overpayments HARRISBURG – Pennsylvania recently implemented new work-search requirements for people getting unemployment compensation, but data from the federal government says the state is overpaying benefits at a high level.

Pennsylvania distributed more than $690 million in overpayments of unemployment compensation money between July 2011 and June 2012, according to new data from the U.S. Department of Labor’s Benefit Accuracy Measurement program. Overpayments are usually the result of fraud, clerical errors and inaccurate reporting by employees and employers.

That total is nearly double the $376 million in overpayments made during the previous 12 months, largely due to the state’s new, stricter, work-search rules that require claimants to be actively seeking work by applying to at least two positions each week they get benefits.

“That is the driving factor for the increase we see in Pennsylvania,” said Jason Kuruvilla, spokesman for the U.S. Department of Labor.

For the period report examines, unemployment in Pennsylvania ranged from 8.1 percent to 7.4 percent.

Unemployment was 7.8 percent in November 2012, the most recent month available.

Improper payments to workers who failed to meet those work-search requirements accounted for $250 million of Pennsylvania’s total during 2011-12.

In the 2011 report, Pennsylvania recorded zero overpayments due to search requirements — because the state had no such requirements. They were implemented in January 2012.

In last year’s report,overpayments because of failure to meet work-search requirements jumped to 8 percent of all unemployment payments.

Data seems to indicate many claimants are still receiving benefits without meeting the work-search requirement, though those payments are now classified as “improper” instead of “proper.”

Sara Goulet, spokeswoman for the state Department of Labor and Industry, agreed that unemployment overpayments are up, in part, because of the new requirements.

So how do all those improper payments get through the system?

Some are the result of outright fraud – about $158 million during 2011-12, according to the federal report – but most are due to recipients who fail to report they have been hired and continue to collect benefits, clerical errors on the part of employers or the state Department of Labor and improper reporting of firings.

- PA Independent

Act 44 Drives Skyrocketing Turnpike Tolls Of course, the turnpike HARRISBURG – Taking a ride still has to take care of its on the ol’ Pennsylvania Turnpike own operations and keep will cost you a bit more starting its own bridges in usable this week. condition. It just has to do And no, this isn’t a broken so with a balance sheet that record – even if it sounds like one. is $450 million lighter.

Burdened by a state law that The end result: borrowrequires it to transfer $450 million Eric Boehm is annually to PennDOT and more bureau chief for ing, lots of it, and annual than $8 billion in debt, the Pennsyl- PA Independent, toll increases to cover the spiraling debt service costs. vania Turnpike this week increased an online The turnpike has been tolls for a fifth consecutive year. political news turned into a cash cow for The toll hike took effect on Jan. 6, organization.

PennDOT, but the people with cash customers hit with a 10 really getting milked are percent increase and those using those who pay the tolls.

E-Z Pass charged 2 percent more.

And there’s no end in sight – Act 44 A trip from Ohio to New Jersey on the mainline of the turnpike will now cost requires the turnpike to make those pay$39.15 for cash customers, a 71 percent ments every year until 2057. increase since 2008, and $30.77 for Auditor General Jack Wagner has those using E-Z Pass, which is still a 36 warned that continuing to increase tolls percent increase in five years. will, sooner or later, drive people away Oh, and did I mention that prior to from the high cost of using the turnpike 2008, tolls had only been hiked on four and on to other roads that may not be occasions in the turnpike’s entire history designed to handle the traffic. dating back to 1937? It’s true.

He says the tipping point may be And before 2008, the turnpike had a coming sooner than anyone expects, much lower level of debt, around $2.9 and a report by the Pittsburgh Postbillion.

Gazette last week showing that truck So what happened in 2007 to set traffic on the highway has declined in off this seemingly endless spiral of toll recent years seems to give his argument increases and unsustainable borrowing? more weight.

That year, the state legislature considThe Turnpike Commission maintains ered a proposal to lease the turnpike to a that their debt is sustainable and points private operator, but ultimately decided to internal projections showing an expected increase in traffic despite the not to do it.

Instead, they concocted a plan that higher tolls.

Time will tell who is correct, but as was approved as Act 44 of 2007, requiring the turnpike to hand over $450 lawmakers and Gov. Tom Corbett get million to the state annually. It would serious about transportation funding have been $900 million annually, had later this spring, some changes could be the federal government allowed the coming to Act 44.

The House and Senate Transportaturnpike to put tolls on Interstate 80 – turning it into the Pennsylvania Turn- tion Committees have already held hearings on the law to study its adverse pike North.

That annual payment is divided into consequences.

Individuals and businesses that rely $200 million for various road and bridge projects around the state and on the turnpike to do business should $250 million to subsidize mass transit, certainly push for changes that address with most of it spent in Philadelphia and the debt and ever-increasing tolls on Pennsylvania’s most important highway.

Pittsburgh.

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IN HARRISBURG

Printer change saves $1.1M Debates on government spending can turn thoroughly complicated, but sometimes saving taxpayer dollars is as simple as pressing a couple buttons on a couple thousand printers.

One example: Changing default settings on Department of Public Welfare printers, saving a cool $1.1 million in paper and toner costs. Settings were changed on 2,300 printers to print double-sided pages, and 200 to print in black and white.

- Melissa Daniels PaIndependent.org

State Schools Pass ... Barely StudentsFirst, a national educational reform organization that was heavily involved in the unsuccessful push to create a public school voucher program in Pennsylvania during the last two years gave the state a D+ on its recent report card.

To be fair, no state scored higher than the “B-” awarded to Louisiana and Florida, so it’s clear StudentsFirst wasn’t grading on a curve. If it was, Pennsylvania surely would have been higher, since the state ranked 19th overall.

- Eric Boehm PaIndependent.org

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Congress Must Leap Into Void

Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.

CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

After Congress took the nation to the edge of the "fiscal cliff," it passed, at the 13th hour, a bill that averted an income-tax hike for all but the highest-earning Americans.

That's little good news for the people who foot the bill for Congress' spending.

The bill passed on January 1—the first time in two generations that Congress actually held votes on New Year's Day—made permanent the "Bush tax cuts" for all but a select few. That's a small victory for Republicans who for a decade argued in favor of making the cuts permanent. It SHOULD take taxation off the board and let Congress focus on the real issue of Round Two: spending. But President Obama is already saying he'd like to raise the taxes of a few more Americans to provide the federal government with more bucks to spend.

What the measure passed by Congress didn't do was address the pressing issue of overspending on the part of the federal government (and governments at all levels for that matter).

A little history is important here. Back in 2009 President Obama formed the Simpson-Bowles Commission to make specific recommendations on how to deal with the burgeoning federal debt. It did; the Obama Administration simply ignored them.

Congress, frustrated and angry over the lack of presidential leadership to move his own panel's suggestions, balked at raising the debt ceiling one more time. Ultimately this produced the so-called "Supercom-

PRESIDENT OBAMA, SADLY, HAS SAID HE’S NOT INTERESTED IN NEGOTIATING ON THE DEBT CEILING. THAT IS A FAILURE OF LEADERSHIP OF THE HIGHEST ORDER. mittee" charged with coming up with a congressional plan. Their plan included a stick: if Congress didn't act there would be both massive tax increases and automatic spending cuts.

For the longest time Congress failed to act. Then at the last minute (actually past the last minute, but Washington seems to be able to do those sorts of things) it allowed increased taxes for the highest wage earners but postponed the automatic cuts for an additional two months, thus setting up a real fight over the debt ceiling.

President Obama will ask Congress to raise the debt ceiling for the fifth time under his watch. During this period the federal debt has grown at an unparalleled rate, increasing $6 trillion. Erskine Bowles, a well-known Democrat who served as deputy chief of staff in the Clinton White House (and the same Bowles of the commission's name) put it succinctly, "...these deficits are like a cancer and over time they will destroy the country from within."

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REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

We're already borrowing roughly 40 cents of every dollar the federal government spends. In just a decade the interest payments on this debt and entitlement spending will drain every dime of revenue.

It simply cannot continue.

However, many in Washington are so addicted to spending other people's money for their own political fortunes, they are unwilling to support simple common sense proposals to cut spending and get this mess under control.

President Obama, sadly, has said he's not interested in negotiating on the debt ceiling.

That is a failure of leadership of the highest order.

President Obama won on the first round without exercising leadership. It was Vice President Biden who hammered out the agreement with Senate Republican Leader Mitch McConnell. It was a lousy deal that was voted for by many who simply believed that the alternative was worse. It probably was.

But now the stakes have changed. Now the debate will center on whether or not it is good for America to keep running up massive deficits and enduring debt by spending money we don't have. The leadership vacuum created by the White House will need to be filled by courageous members of Congress whose spines have stiffened.

If they can stand firm and take their case directly to the American people, they can win the debate and the debt fight.

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IDEAS

Saying Thanks Can Improve Bottom Line In many organizations, employees go through their days assuming that coworkers, and especially their bosses, don’t notice or appreciate the hard work that they do. If that’s the way they feel, they won’t have any true motivation or dedication, and productivity will be mediocre at best.

In the midst of an already tough economy, this is the last thing you want for your organization. In a very real way, tapping into the spirit of ThanksTodd Patkin is the author of giving can tip the balance between success and “Finding Happiness: One Man’s growth and stagnation and failure.

Quest to Beat Depression and If you’re a leader who wants to harness the Anxiety and — Finally — Let the power of thanks (or even an employee who wants Sunshine In.” Learn more at to start a grassroots movement), read on for six ToddPatkin.com. how-to tips: Always say “thank you.” By taking a few seconds out of your day, you will improve another person’s mood, day, and productivity level. You’ll also be making yourself more approachable and likeable, and over time your team will begin to relate to you more positively. I’ve found consistent and heartfelt recognition — when deserved — to CONTRIBUTE be a better long-term motivator than money.

Send comments, letters Take intent into account. I often tried to show and essays to feedback@ my employees how much I appreciated them by regionsbusiness.com. sending high achievers to sports games, highOpinions expressed by lighting employees in company newsletters, planguest writers do not ning company parties, etc. Sometimes those plans necessarily reflect those of mlfa_taxad_mercury_qrtr1212_Layout 1 12/14/12 8:37 AMtimes Pagethey 1 weren’t. were well received; other Region’s Business.

Inevitably, there will always be someone who says, “Gosh, the food at this party tastes horrible,” for example. Despite negative feedback, showing gratitude is always the right thing … the majority of non-complainers probably loved your gesture.

Start being more open. If you’re a leader, constructively tell your people how they can improve their performance. If you’re a team member, be proactive about asking your coworkers and boss how you’re doing and how you can get better.

And no matter what your position is, learn how to receive constructive criticism.

Showing others that you care enough to either help them or to improve yourself is a form of gratitude, because you’re demonstrating that your team is worth the investment of your time, energy, and advice.

Learn to graciously accept thanks. How you respond to appreciation is also important. If you brush off compliments or ignore expressions of gratitude — even if it’s because you’d rather stay out of the spotlight — you’ll eventually stop hearing “thanks!” altogether, and you’ll be discouraging the person complimenting you from reaching out to others. Whenever someone thanks you or notices something positive, engage with them and let them know their words have been meaningful.

Keep the gratitude going outside of your organization. Thank your customers or the peo-

ple you serve for choosing your organization, and for trusting your team with their money, health, products, or publicity. This is something many clients don’t hear, so when they do, their loyalty to your company is strengthened. You might also consider offering discounts, coupons, or promotions to show customer appreciation.

Use gratitude to reinforce stellar performances. Using gratitude to shape your team’s habits and priorities can be every bit as valuable as training programs and industry conferences … at a fraction of the time and cost.

Whenever I saw an employee going out of her way to make sure that the product a client purchased was the best possible value, I thanked her for doing it. If a store manager made a mistake and came clean to me about it, I thanked him for that, too. Never forget that whatever you acknowledge positively will be repeated.

Throughout my years of leadership, I became more and more amazed by just how strong the power of thanks really is. Gratitude is an amazing motivator, it strengthens employee and customer loyalty, and it really can allow you to see a positive change in your company’s bottom line. And especially in today’s not-so-stellar economic environment, it’s extra-important to give your people something to be positive about and thankful for.

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Consider me corrected.

When this magazine launched, I wrote a column about why I thought Philadelphia had to change its ways. I love Philadelphia, I wrote, but I felt that it was lacking. I couldn’t see why smart, innovative, and talented people would stay in the city when there were options like New York City or San Francisco. I posited that while Philadelphians have the soul, something was lost in translation between city and business leaders and its citizens. Philadelphia just wasn’t living up to my expectations.

But through recent visits and conversations with Philadelphians, longtime professionals and up-and-coming peers in the city, there is a general sense in the area of growth, change, and the one thing I scathingly wrote we were missing: drive.

Change doesn’t happen overnight and it’s been bubbling for a few years now. Economic initiatives from City Hall, innovative expansions in University City, redevelopment in places like the Navy Yard and Northern Liberties, and the will and enthusiasm from the business and technology community have started to come to a full boil.

The mood surrounding the tech community and the recent focus on finding and funding innovative ideas in Philadelphia has a certain patriotic feel to it.

Many of the city leaders, educators and techies I spoke to cite Benjamin Franklin as the original American entrepreneur. And of course, Mr. Franklin did leave Boston for the bustling urban and professional environs of Philadelphia.

In a recent Bloomberg TV interview, Mayor Nutter went so far as to call Philadelphia the “original start-up.” They aren’t being overly proud. It’s obvious to most Philadelphians that it’s a prime location for anyone who wants to start something new and disrupt the status quo. Whether it’s creating a new app for take-out delivery or writing the Constitution, Philadelphia has a long history of risk-taking. With the move of First Round Capital onto University of Pennsylvania’s campus this past year, Philly has been getting some long deserved attention from business media and the technology community.

It’s time to start believing the hype.

Text by Karen Fratti Illustration by Don Lee

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2013: YEAR OF THE

INNOVATOR

All the pieces are falling in place for Philadelphia to establish itself as the “it” spot for innovation and entrepreneurs this year.

P

Staying in Town

hiladelphia’s task isn’t to foster innovation, but to keep it in town.

The move of First Round Capital into the city “highlights the recent legislative change to our tax code that City Council passed which made Philadelphia attractive for venture funds,” according to councilman David Oh, Chairman of the committee on Global Opportunities and the Creative/ Innovative Economy. “This move sends a signal that they recognize the talent in Philadelphia and the fact that as a city we are at or close to a tipping point of becoming the next big tech city.”

It’s also in line with the long term goal of keeping companies and business leaders in the city. For too long, Philadelphia has been a launch pad for startups before they head to greener pastures. Take the example of Warby Parker, the disruptive eyewear retailer created by friends from UPenn’s Wharton School of Business. They immediately moved their company into New York City to raise their first rounds of capital.

This fall, they secured close to $40 million in funding and are off to change the world of online retail and how people think about buying eyewear, battling the monopoly and donating a pair of eyeglasses to the needy for every pair sold to a hipster.

Luckily, some companies are starting to stick around. Popular rising companies like The Neat Company, DuckDuckGo, and Monetate are staying true to their roots, turning down New York for the community they’ve found in Philadelphia.

That’s part of what the Mayor’s StartUP PHL project is all about. The highly publicized Seed Fund is a proposal for a public/ private venture fund to make seed-stage investments in Philadelphia-based tech startups. The Philadelphia Industrial Devel-

PHOTO BY G. WIDMAN FOR GPTMC

In the top 6 According to the website 24/7 Wall St., Philadelphia is on of the six most innovative cities in America with more than 2,000 patents granted.

opment Corporation (PIDC) will seed the fund with $3 million to be matched and managed by a private investment firm that will make investments on behalf of the fund.

There is a counterpart Call for Ideas that will fund up to a total of $500,000 to entrepreneurs with smart ideas to help the city grow.

Councilman Oh is happy to finally see a program like this come to fruition. “While our entrepreneurial community has been growing organically, having this type of support and commitment from the City shows how much we value this community and see the potential for these companies to grow and create jobs in Philadelphia.”

Of course, it’s not all about the money.

Alex Hillman is the co-founder of Indy Hall, the largest co-working community down on

N3RD Street, a hub of Northern Liberties where the like-minded, digital gurus, and entrepreneurs of Philly have claimed as their camp. A natural and outspoken leader, Mr. Hillman was originally put off by the program and what he saw as it’s narrow focus on just getting cash to innovators. He wrote on his blog, dangerouslyawesome.com, that he was “underwhelmed” when he first heard of the program. When he declined to be involved, he says that Bob Moul, president of Philly StartUp Leaders and former CEO of Dell Boomi, challenged him to sit down and talk about why. And that was when Mr. Hillman’s mind was blown.

Mr. Hillman says that he and Mr. Moul are like “yin and yang.” Mr. Moul is “hardwired for growth.” Mr. Hillman and his Indy Hall peers are hardwired to focus on growing deep, creating a tech community in Philadelphia that is as focused on growing up as it is about remaining plugged into the city, its roots, and making it better.

“What we realized is that it’s not an eitheror [situation]. They are symbiotic only if they listen to each other and share a common set of goals and beliefs about why you start a company and what you do with it,” says Mr. Hillman.

And so Mr. Hillman was convinced. He has come to see StartUP PHL as a “good start to a conversation that’s barely the first page in a long, new book.” He says he was “pleasantly surprised” to learn that the institutions were more interested in getting feedback from the existing tech community about how to move forward with the StartUP PHL project than just asking them to come along for the ride.

“I’m glad the city is standing beside [the Philly tech community] in support and I think there are a multitude of ways to do that that are more

... HAVING THIS TYPE OF SUPPORT AND COMMITMENT FROM THE CITY SHOWS HOW MUCH WE VALUE THIS COMMUNITY AND SEE THE POTENTIAL FOR THESE COMPANIES TO GROW AND CREATE JOBS IN PHILADELPHIA.’ COUNCILMAN DAVID OH

OUR VIEW

Opportunity, challenges clear Our editorial: The region has a rare chance to do something special. While there are many positives in place, there are also challenges that can’t be ignored.

PAGE 29

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valuable than money,” he posits. Although, “of course,” he adds, “money makes things go faster.”

A Community, Not a Scene Mr. Hillman used to be one of those people who almost left the city. After leaving Drexel University to work as a freelance developer in 2006, he had trouble settling into the city. He looked around for others like him and couldn’t find them on the streets, so he found them online.

From one tech meet-up to another, he eventually landed in San Francisco, an obvious choice. There, he found a community of people doing things the way he wanted to do them. There was a longstanding tech community.

There was capital. There was cooperation between the bureaucrats and the innovators. He was introduced to co-working, a very particular consequence of the digital economy, places where people can pay a membership fee for a desk to write code or their business plan, and network both professionally and personally. Mr. Hillman was inspired.

Unforeseen circumstances caused him to eventually not settle down in Silicon Valley. Luckily, Mr. Hillman came back to Philadelphia and worked to find other people in the city. It was hard, but he found them. And in 2007, they founded Indy Hall together, the fastest growing coworking space in Philadelphia, nestled on N3Rd Street.

The Indy Hall story is important to the newer story about Philadelphia becoming more tech and entrepreneur friendly in the headlines. Those headlines tend to focus on a tech “scene,” whereas Mr. Hillman and his peers like to emphasize that it’s more a tech “community.” This community is just as focused on helping you figure out how to get a first round of seed funding as it is civic minded and making the city accessible to newcomers looking to get down to work.

The community they have systematically built has grown “explosively,” says Mr. Hillman, and fostered other core groups in the tech scene. It’s that kind of community that can convince entrepreneurs to stay in the city.

“There is a bubble-like quality to the talk about Philadelphia [right now],” Mr. Hillman said. “We want to make sure that when people arrive, let’s make sure the story they hear is about the community, about making Philadelphia better. And then we all win over the gold rush mentality.”

“You need ‘big’ companies, for talent and capital, but it can’t just be two dimensional. We have to make sure we’re all dumping our resources into the same pool to make Philly better.”

That sort of mentality is at the heart of disruptive technologies and entrepreneurship. It’s also at the heart of SEED Philly, another collaborative for local entrepreneurs. SEED Philly, a non-profit, provides the “ecosystem” and resources new companies need to get started. Like everything tech-minded, it’s all about collaboration, there too. Education, vetted community directory, and shared workspace to help get start-ups off the ground, but keep them in Philadelphia.

Local entrepreneur AJ Bubb has been spending his time helping with tech support for startups at SEED Philly when he’s not consulting through his own company.“If there’s one thing Philadelphia is good at it’s cultivating hard core fans,” Mr. Bubb jokes. “There’s less population per capita here. But it’s about quality, not quantity. There

The school district’s plan to shutter three dozen schools (including Abigail Vare in South Philadlephia) could work out for entrepreneurs. Old schools can often be retro-fitted into multi-functional work spaces.

Make Room For The N3rds It’s time to start fluffing those pillows and cleaning house. If we’re going to start fostering small businesses in town and inviting others to come here, we need a place to put them.

Luckily, Philadelphia and the region has tons of prime real estate for small businesses. Already, the tech community has organically collected itself on North 3rd Street, known to those in-the-know as N3RD Street (computer geeks, get it?)

Anchored by Indy Hall,the co-working upstart, and other companies like SEER Interactive, I-Site, and Drink Nation among others, the stretch of city blocks has become a hub of talented entrepreneurs.

But there is still space to be conquered. Councilman David Oh is the Chairman of the Committee on Global Opportunities and the Creative/Innovative Economy. After companies like appRenaissance and TicketLeap moved in above Rittenhouse Square, City Hall has Oh in charge of bringing more

companies to town last year. The first step is to avoid office complex deserts.

“One of my top agenda items is exploring the creation of a 24-hour section of the city where people can build tech businesses or live in the lofts where they create art or a host of other things. Today’s workforce in the creative and innovative sectors are not 9 to 5 workers. These people have the ability and flexibility to work anytime and anywhere.

We need to take a serious look at the physical assets of the City,” he says.

One idea is to take a look at old school buildings. These can be retro-fitted for not just high end lofts, but multi-functional work spaces.

“The creative/innovative economy is based on very smart, very skilled and very talented people working together. These people are highly mobile and can work in ways less constrained by location.

Therefore, they can often choose where they live and where they work... Starting with personal safety and a good environment to live,

learn, and raise a family, having a city which provides a great quality of life will draw a large number of these people and following them, both employers and investors,” continues Oh. “While we still have a lot of work to do and many difficult challenges yet ahead, when you look around Philadelphia you get to understand just how ‘people friendly’ our city is. We truly are a ‘walkable city’ with such a diverse mix of neighborhoods...The cost of living in Philadelphia is lower compared to other large cities making it affordable for families; we have the largest urban park by acreage in the country; our arts and culture are spread throughout the city; and our public transportation system has been named among the top in the country.”

Once we find a home for these entrepreneurs, Councilman, can we make one of them to find a way to change the ‘cash-only’ payment rule on that transportation system?

Make room, Philadelphia, the nerds are coming.

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are angel investors here, venture capitalists, here, you just have to work harder to find them. You have to be better at what you do.”

If Can Make it Here, You Can Make it Anywhere Philadelphia’s universities have started to shift their focus to help young entrepreneurs be better at what they do. While SEED Philly and StartUP PHL focus on getting a start-up off the ground, more business schools are helping students focus on how to think outside the box and foster innovation.

Temple University’s Fox Business School’s Innovation and Entrepreneurship Institute (IEI) is partnered with the university’s Small Business Development Center to support entrepreneurship at a multi-disciplinary level across the university.

The IEI’s Innovation Center provides a space on campus where students can tap into a large network of business advisors, mentors and faculty at Temple’s Fox Business School to provide consulting for students with a business plan in mind.

Aside from providing a space to be inspired, they also host competitions like the Be Your Own Boss Bowl, where undergraduates enter their “vision” to be matched with a mentor to work on a full blown business plan. The grand prize is $115,000 in cash, Microsoft products and professional services.

More than just a way to win some money, the purpose of the competition is to “encourage the launch and sustainability of new small businesses and scalable entrepreneurial ventures by the Temple community.”

While the IEI and its contests are backed by Fox Business School, past grand prizes for the most well-thought out, strategic business plans have been awarded to College of Engineering, College of Liberal Arts, School of Tourism and Hospitality Management, Tyler School of Art, and Beasley School of Law students.

They also work with the Temple Accelerator Program (TAP), “an uber business incubator designed to take early-stage Temple affiliated businesses and infuse them with additional manpower on strategic, well defined projects so it can achieve progress to the next level of sustainable growth.”

Each year, two or three businesses are selected and staffed with IEI stu-

dents and members of Fox’s Entrepreneurial Student Association. The students work to THERE DOES bring the business to SEEM TO BE fruition - outside of the classroom. They SOMETHING receive counseling HAPPENING on everything from AT PENN JUST creating a manageNOW.’ ment team and business model to brand—DON HUESMAN THE INNOVATION ing and accounting GROUP strategies.

Business school just isn’t what it used to be. West Chester University, too, works with savvy students at its Cottrell Entrepreneurial Leadership Center Apart from advising students and providing a space for their ideas, the center’s most successful program, according to Monica Zimmerman, the Director , is the intern program in which they place PHOTO BY T. LEONARDI FOR GPTMC students in small or start-up companies. steps in a new venture. It comple“The university ments the work of Wharton Entreprefunds interns to work in small and neurship, the Weiss Tech House and startup companies. Without this fundother programs providing a range of ing such companies might not be able incubator services,” according to Don to host an intern. Companies miss out Huesman, Managing Director of the on young talent and students miss Innovation Group. opportunities to experience working in They also send second year MBA’s to a small or startup company.” she says.

San Francisco for a semester - a new This is key to most students. While twist on “studying abroad” - where some have their hearts set on being the students benefit from the “strong next Mark Zuckerberg while in school, presence in the Bay area of major techthe majority want the experience of nology fi rms, a well-known entrepreworking at small and new companies neurial culture, firms specializing the before launching their own business fi nance of innovation, and thousands plan, seeing all the work that goes into of Wharton alumni living and working creating a company means a better in the Bay area,” he says. plan later on.

A curriculum focused on innovaUPenn’s Wharton Business School tion is nothing new, but Mr. Huesman students have been focusing on innoadmits that there is a different sensivation as well. The Wharton Innobility to the need to teach it now than vation Group was founded in 2010 there was a decade ago. to “take advantage of the wealth of “There does seem to be something emerging opportunities for innovation happening at Penn just now. The in education and scholarship created exciting robotics work in the engineerin part by globalization and technoing school and new Nano-technology logical change.” center, new educational ventures The group “provide[s] early stage coming out the Graduate School for small grants to help students turn their Education, the Weiss Tech House, the idea into a prototype, or take the initial Y Prize, Wharton’s expanded entrepre-

neurship programs, this year’s new Coursera open learning initiative in which Penn was a founding partner, and in which Penn leads among our partners in the scale of engagement, reaching a global student body numbering in the millions,” he says.

Councilman David Oh feels the buzz, too. “In Philadelphia it is a somewhat new phenomenon to see our city government working closely with our universities to achieve these results and brand our city a top place for innovation and creativity.”

This just means better collaboration. Continues Mr. Oh, “In my opinion, the role of University City as it relates to City Hall is to provide an environment where very smart and talented people are encouraged to brainstorm and come up with ideas for new things that can impact the world we live in and City Hall is the place where the legislation and policy is developed to support and encourage these people to stay in Philadelphia and build thriving businesses.”

Come Together Too often, we think of the entrepreneur as a lone genius, off to make his fortunes. But it takes more than that. If there’s something to celebrate in Philadelphia right now, it’s the fact that a multitude of forces are coming together to make entrepreneurship easier- to find the funding, to find a team, to fine tune the idea - all in the same place. And of course, it’s not just about being the next Silicon Valley, but participating in a new global, economic shift.

Says Mr. Huesman, “Let’s face it, San Francisco has that beautiful bay and gorgeous weather – we’re not going to win on that. What we have is what brought Franklin here – a thriving, diverse, urban community with a passion for the professions. We’re an hour train ride from the markets in New York and the policy centers in Washington ... I think we should acknowledge and deepen our access to the global networks that foster innovation. It’s not just Silicon Valley – it’s Tel Aviv and Shanghai, Boston, Milan and Stockholm, to mention a few.”

That’s something both City Hall and Indy Hall could agree on.

22

Q&A

10 JANUARY 2013

REGIONSBUSINESS.COM

JOSH KOPELMAN’S

FIRST ROUND DOWNTOWN The managing director of First Round Capital moved his venture capital firm out of the suburbs and into West Philadelphia to be closer to the community of entrepreneurs and supportive politicians that could kick off a Renaissance in the city.

JOSH KOPELMAN / TWITTER.COM/JOSHK

Walking into First Round Capital’s new office location on 4040 Locust St., there’s a distinct feeling of openness.

To the left of the entrance is a skeeball arcade machine, with two boxed-in office spaces just across from it made accessible through glass doors. The offices themselves feature idea-filled white boards stretched across the length of the square spaces, with no trace of a formal dress code policy to be seen from its inhabitants.

First Round’s primary office space is, to say the least, spacious but integral, with room to breathe but still more room to grow — just as the city’s tech startup scene itself continues to be as First Round head-honcho Josh Kopelman makes his reappearance in the city limits.

“I’m probably the only person who’s chosen to triple his commute,” Mr. Kopelman remarked. And with $500,000 ini-

tial startup investments from the firm, it can be safely assumed the city’s aspiring tech entrepreneurs love it as well.

What sparked your interest in Philadelphia in the first place?

For me, I got my start here in Philly.

I was a student here at Penn when I got my start with my first company.

For the last 20 years I’ve been in the suburbs, investing on a more national scale than a local one. But in the last several years I’ve seen companies get their start that have gone on to create more than a billion dollars-worth of market value.

Warby Parker, Venmo — these are companies that, all told, have either exited or raised money at a price of a billion dollars. I thought it didn’t make sense that the venture capital was removed from those companies, so we wanted to

be closer.

Are there certain characteristics you look for in a company?

Yeah, we invest at the earliest stages, so we’re funding ideas and PowerPoints, so we’re really focused on the entrepreneur. We’re trying to get in their head and understand what drives them, and understand how they adapt to change, how they handle adversity — things like that.

So do you have people scouring the region, going to events and looking for investments?

Yup, but not just in the region, we have that nationally. We have offices in New York and San Francisco as well.

Politically, did you expect the overwhelming support from Mayor Nut-

ter? I know he came to the opening event here when you first moved.

I think the administration has been a big booster of tech entrepreneurship and tech startups, whether it’s him speaking at Philly Tech Week or, you know, even with the latest PHL initiative, where they’re basically allocating $3 million for seed-stage technology investments. I think the Nutter administration has been a real supporter of startups in the region.

Speaking of investments, do you have an update on the Dorm Room Fund?

We’ve had hundreds of students apply for one of eight spots in the investment committee, because you know, we think it’s a pretty unique opportunity. We’re giving half a million dollars for eight students to invest.

Philadelphia, as a whole, do you feel

Q&A

10 JANUARY 2013

REGIONSBUSINESS.COM

it has potential to be something bigger — like Silicon Valley?

I don’t think that’s the goal. I think what we’re seeing is the tech world is getting flatter — the geographic advantages of any region are diminishing.

You’ve seen startups come out of New York, but then there’s Boston, Philadelphia and Pittsburgh, and we’ve funded companies too in Portland, L.A. and Louisville.

I think what we’re seeing is that there are clearly advantages to certain ecosystems in terms of advantages to building a company, but the gap between them is shrinking. I think it’s unrealistic and not a natural goal to assume Philadelphia is going to become the next anything, but Philadelphia is a great place to build a business.

Does “tech” have the capacity to be the next “manufacturing?” Could it be the jolt Philly needs to draw in new people, especially young people?

Well, I think if you look at where the growth is coming from, the country at large, venture capital startups have created well over 20 percent of GDP in the country, and you know, where you look at where jobs are created, they’re created from entrepreneurial companies, not from large companies.

And the trends I think you’re seeing in the U.S. are happening around the world, and are also happening in Philadelphia.

Do you have a leg up by coming here before other venture firms?

I hope other venture firms come here.

When you look at one of the reasons why Silicon Valley has been successful, it’s because on one street, Sam Hill Road, right across the street from Stanford University, you have 200 venture capital firms managing $40 billion.

And I don’t believe Silicon Valley would be nearly as successful if there was one venture firm there. I think the whole ecosystem has benefitted by having a concentration of capital there.

So I have no desire to be the only venture capital firm in Philadelphia. I would love to have other venture firms come nearby.

I think it’s a shame the region’s venture capitalists are spread out in Radnor, Wayne, Bala Cynwyd or Conshohocken where we were. And I think if the capital doesn’t come to where the entrepreneurs are, then the entrepreneurs will resort to going to where the capital is, which has historically been New York and San Francisco.

So now’s the time to look and see if you can move to the city if you’re a venture firm.

Is there a company here in Philadel-

23

INSIDE FIRST ROUND

Who? Josh Kopelman is the managing partner of First Round Capital.

What?

First Round Capital is a venture capital firm.

It provides money to technology startups and budding entrepreneurs.

When?

I DON’T THINK PHILADELPHIA’S CHALLENGE IS IN ATTRACTING GREAT ENTREPRENEURS; THE CHALLENGE IS KEEPING THEM HERE.’

First Round was founded in 2004. In September 2012, it relocated from Conshohocken to West Philadelphia.

Why? phia you’ve observed that made you think, “Wow, I wish I’d invested in that one?”

I think there’s a company called LiftDNA that’s done very well, and we should have funded that one. I look at DuckDuckGo, that one’s pretty interesting.

So you know, there are plenty — RJ Metrics, we didn’t fund them — that are doing great and doing some interesting things.

During the election cycle, did venture capital firms get kind of a bad rap?

I think, well, I think that venture capital is very different from private equity, and that to some degree, there may have been some confusion created about the distinction.

What would you tell someone just now starting out in the tech world, whether that’s a student or a 40-yearold just now deciding to get into the tech business?

I’d tell them that there’s never been a greater time to start a company.

The cost to start has come way down.

Your ability to get access to distribution platforms, whether Facebook, Twitter, Android, Apple — costs have come down.

But while the costs have come down, the mechanics of starting a company are still the same. Surround yourself with great people, try to learn from advisors and mentors as much as possible, try to get to market quickly — the basic entrepreneurial lessons are still the same, even though the costs have come down.

It’s 2022 in Philadelphia. What does the Philly tech scene look like?

You know, I think that tech ecosystems are created by successful companies. They can’t be legislated into existence, you can’t have a task force to do it — it’s not a topdown thing.

Because what you see is that the alumni of successful companies, you know, it’s not an accident that Yelp, which went public; Yammer, which sold to Microsoft for [$1.2] billion dollars; YouTube, which sold to Google for a billion; and LinkedIn were all started by alumni of PayPal. It’s the alumni of one successful company that start the next one. The alumni of one company become the angel investors, the mentors, the advisors and the founders of the next generation.

It’s like a forest — the seeds of one great tree drop the next ones, and the next ones.

I think it takes time to create an ecosystem, and that only gets created if we have more successful companies in the region.

I look at one of our investments, it’s a company called Monetate — they’ve grown from two employees in 2008 when we seeded them, to more than 130 today. And, you know, I’m hopeful that the alumni of Monetate will become the creators of the next generation of entrepreneurs.

So I don’t think Philadelphia’s challenge is in attracting great entrepreneurs, the challenge is keeping them here. What I’m hopeful for in the next 10 years is we keep more of these companies started here, and get them to stay here.

— Brandon Baker

Aside from upward trends in the community and Mr. Kopelman’s alumnus status at Wharton, legislation passed in 2012 exempted not only investment funds from paying business taxes in the city, but also their partners.

This, in addition to implementation of the Keystone Innovation Zone Tax Credit Program, new tax breaks for design- and video game-related companies, and a slew of other cost of living and cultural elements, combined to create a more attractive — if imperfect — foundation for tech startups to launch.

www.firstround.com

www.twitter.com/joshk

www.facebook.com/ firstroundcapital

24

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10 JANUARY 2013

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10 JANUARY 2013

REGIONSBUSINESS.COM

GREATER PHILADELPHIA CHAMBER OF COMMERCE

Campbell Soup’s Morrison Wins Paradigm Award

Denise Morrison, president and CEO of Campbell Soup Company, received the 2013 Paradigm Award, presented annually to a woman in business whose professional and personal achievements serve as a model of excellence, according to the chamber.

CHAMBER REPORT

27

EASTERN MONTGOMERY COUNTY CHAMBER OF COMMERCE

Township Managers Report Economic, Development Goals The Eastern Montgomery County Chamber of Commerce recently held a Municipal Managers’ Business Breakfast, at which managers addressed economic projects and objectives for 2013.

Horsham — Toll Bros. will build 94 single-family homes. A Re-Use Plan for Willow Grove Navy Base calls for 1,400 dwelling units and a new office park.

Cheltenham — Matrix will build 166 townhouse and single-family dwelling properties on the former Ashbourne Country Club property, and 59 townhouses will be built across the street.

Abington — A Super Wawa will be built on Old York Road, across from Barnes and Noble, which will be replaced by a CVS this year.

The Saturn dealership could become housing for students at Penn State Abington or be used for university art

RegionsBusiness.com Version 2.0 Philadelphia, 24/7

exhibits, parking and/or classrooms.

In 2012, Nordstrom Rack and JC Penny stores moved to Willow Grove Mall.

Upper Moreland — Results of a township study of the feasibility of moving the Willow Grove train station suggest the cost would be prohibitive. The township is also considering a student housing project for Penn State Abington students in Willow Grove.

Lower Moreland — The township is working to build a large athletic field.

A transit oriented development grant would allow the township to add retail near either the Bethayres or Philmont train stations. A Wawa will open in April on Philmont Avenue.

Jenkintown — The former Bucca de Peppa space has been leased to West Avenue Grill, which will be replaced by a Thai restaurant.

Willow Grove Park Mall

LOUIS SHACKLETON

28

10 JANUARY 2013

REGIONSBUSINESS.COM

OPINION

State Must Avert ‘Lottery Cliff’ for Seniors, Taxpayers F

Elizabeth Stelle is a policy analyst with the Commonwealth Foundation, Pennsylvania’s free-market think tank.

Learn more at CommonwealthFoundation.org.

CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com.

Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

rom the greatest generation to the latest generation, Pennsylvania’s seniors have worked a lifetime to build this great commonwealth through hard work and sacrifice, but are now being told the only way to depend on well-earned and needed care is if the right numbers come up in the Pennsylvania Lottery. Sadly, that’s a gamble our grandparents and children can’t afford to make.

Ultimately, our booming senior population could result in a “Lottery Cliff ” — dramatic cuts to programs that benefit senior citizens and/or significant tax increases on working Pennsylvanians. Our Pennsylvania seniors depend on Lottery revenues to fund critical programs, including prescription drug programs, property tax rebates and senior centers. Unfortunately for them, a recent Legislative Budget and Finance Committee report found that future demand for these programs will outpace Lottery revenues. Bringing in private experts to run the state Lottery offers an alternative solution to higher taxes or cutting seniors’ programs.

To Governor Corbett’s credit, the commonwealth recently completed a competitive bidding process for a private company — Camelot Global Services — to operate the state Lottery with future financial guarantees of a minimum of $34 billion in Lottery profits over the next 20 years. Compared to the Lottery’s historic performance, this bid would generate an additional $2.3 billion for senior services over the first decade.

Through a private management agreement (PMA) between the Department of Revenue and Camelot, the commonwealth would continue to own and oversee the Lottery, but would contract out day-to-day operations to an experienced private company with a record of increasing revenues.

Camelot currently runs the lottery for the United Kingdom, and California and Massachusetts have engaged Camelot to consult on their lotteries.

Furthermore, this deal will be good for

After a lengthy, open

bidding process resulting in an agreement that guarantees more money for senior programs, critics — particularly, AFSCME union leaders —

are attacking Gov. Corbett.

What are they really concerned about? job seekers and taxpayers. Camelot will incorporate in Pennsylvania and pay the same state taxes as other businesses. The contract requires that 80 percent of Lottery workers and hours worked be located in Pennsylvania. And Camelot has already indicated plans to expand the current Lottery workforce.

Under the proposed contract, the commonwealth would retain 70 of the 230 current Lottery employees. The contract guarantees the remaining 160 state Lottery workers one year of employment.

During the transition time, Camelot will offer new positions to state employees and the commonwealth will find replacement positions for anyone who does not receive an offer.

This means more private sector job opportunities for Pennsylvania workers, reduced strain on our public pension system and more tax revenue for the commonwealth.

In contrast to coordinated claims the process has been rushed, the Department of Revenue issued the invitation for bids nine months ago. Over that time, there was a legislative hearing, a series of news releases, an investigation into the qualifications of each of the prospective bidders, and posting of the full contract on the Department of Revenue’s Web site.

While Camelot was the only company to put money on the table ($200 million up front), the bidding process was competitive, with two other interested bidders.

This represents more bidders than any state Lottery management procurement to date, pulling from the handful of companies worldwide qualified to operate Pennsylvania’s multibillion dollar enterprise.

In addition to Camelot’s proposal demonstrating the benefits of a competitive bidding process, the union representing Lottery employees (AFSCME) has the opportunity to put forward an even better deal.

Yet after a lengthy, open bidding process resulting in an agreement that guarantees more money for senior programs, critics— in particularly, AFSCME union leaders— are attacking Gov. Corbett. What are they really concerned about?

The number government union bosses really care about is not $34 billion, it’s $100,000. That is how much union dues money AFSCME could lose if 160 Lottery employees transition to jobs with a private company.

Those dues, which the state government deducts from workers’ paychecks and sends directly to the union, cover about half of AFSCME Executive Director David Fillman’s $204,000 compensation package. Those dues also support AFSCME’s lobbying and political activity—nearly $1 million in 2011-12, not including Political Action Committee spending.

Certainly, the Corbett administration should be applauded for putting the needs of seniors and taxpayers ahead of the demands of special interests who get rich off big government. The guaranteed $34 billion in Lottery profits is no gamble, and will ensure we don’t push seniors and working Pennsylvanians over the impending “Lottery Cliff.”

10 JANUARY 2013

REGIONSBUSINESS.COM

OPINION

29

Year of Innovation Presents Opportunity for Philadelphia

S

ome of life’s most important moments happen before you realize they are materializing. An invitation ignored, a call missed, a meeting never scheduled, all can alter a life without the consequences being known until years later.

But there’s a great moment being presented to the Philadelphia region, and it’s not happening in any covert fashion. And how the region responds may well shape its destiny for the forseeable future.

A confluence of variables have come together to put Philadelphia in a great position to become the hub of the innovation economy on the East Coast, if not the country.

Those variables include being at the “50-yard line” between the nation’s political capital (Washington D.C.) and the nation’s financial capital (The Big Apple). There’s an extremely well-educated work force, a bustling city that’s enjoying a population boomlet, riding a wave of exciting residential development and a cultural scene that attracts a desirable demographic.

Then there are more mundane, but no less important factors, such as a cost of living (especially volatile energy costs) that compares very favorably with New York, a walkable city augmented by a sophisticated mass transit system, plenty of great workspace and, not of least importance, the availability of investment capital.

That all adds up to put Philadelphia in a great position to reshape itself as “the” spot for innovation,

creativity and entrepreneurialism.

This needs to be encouraged and nurtured as a way to stabilize the region’s economic future.

Because while the advantages are apparent, challenges remain.

First, there is competition.

Other metro areas are working to attract this type of development.

Philadelphia is not working in a vacuum here.

Second, the city has a reputation to overcome. There are still some stubborn stereotypes out there, not the least of which is that Philadelphia is the last of the major cities dominated by thug-style unions.

That, plus a legendary bureacracy, can make Philadelphia a difficult place to do business.

As venture capitalist Josh Koppleman astutely points out, “I don’t think Philadelphia’s challenge is in attracting great entrepreneurs, the challenge is keeping them here.”

Streamlining bureacracy and creating a positive labor environment would set the groundwork for stemming a potential brain drain and keeping the next generation of entrepreneurs right here where they started.

The opportunity is too massive to ignore; the stakes couldn’t be higher. So local and state officials need to keep their eyes on the ball and focus on making Philadelphia not just a great place to start a business, but a great place to grow a business. It’s time to take the long view and vault Philadelphia to national prominence in 2013.

It’s the type of innovation we need.

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COMMENTARY FROM ACROSS THE WEB

Gov. Corbett Disgraces Himself With Lawsuit We are just three days into the new year and we have a strong contender for Dunce of the Year. Pennsylvania Gov. Tom Corbett (R) has done the impossible — making the NCAA a sympathetic figure and deepening the horror of the Penn State child-rape scandal. Corbett is suing the NCAA because the penalties imposed on Penn State, which the university accepted in the aftermath of the Jerry Sandusky child-molestation scandal, are too “harsh.” No, seriously.

@hblodgett

Please remind the Republicans of that! RT @moorehn: @TheStalwart @PragCap Default is unconstitutional. There is zero chance it will happen.

7 JANUARY 2013

on Nov. 6, 2012. Levittown voted for big government. Now let them pay for it.

JENNIFER RUBIN, WASHINGONPOST.COM, 3 JANUARY 2013

Let Obama’s Backers Pay A few weeks ago, Congressman Mike Fitzpatrick said he would vote to avoid the Jan. 1 fiscal cliff to protect people in “places like Levittown” from having their taxes spike by thousands of dollars a year, as the Bush tax cuts expired.

Odd. Why protect Levittown? The four municipalities that comprise that sprawling, iconic suburban middle-American heartland (Bristol Township, Falls, Middletown and Tullytown) voted 61 percent for Barack Obama

EDITORIAL BOARD CEO and President James D. McDonald Editorial Director Karl Smith Associate Editor Terrence Casey

Levittown, it’s time to settle your entitlement tab. There is no such thing as a free lunch.

J.D. MULLANE, PHILLYBURBS.COM, 7 JANUARY 2013

Lawsuit a Gamble [Gov. Tom Corbett] made a bold decision to sue the NCAA over its sanctions against Penn State. Unfortunately, it’s not the right decision. ... it seems odd that a governor who has urged tort reform and curbing costly litigation has decided to sue the governing body of college sports. It’s possible that this suit could cost hundreds of thousands of taxpayer dollars.

THE PATRIOT NEWS EDITORIAL, 4 JANUARY 2013

HOW TO CONTRIBUTE To contribute, send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business. We reserve the right to edit all submissions for content, style and length.

30

10 JANUARY 2013

REGIONSBUSINESS.COM

BY THE NUMBERS

How unpopular is Congress?

Well, Public Policy Polling asked people to choose between Congress and, well, just about everything.

Here’s how Congress fared.

$690,000,000

Amount Pennsylvania spent on overpayments for unemployment compensation between July 2011 and June 2012 according to new data from the U.S. Department of Labor’s Benefit Accuracy Measurement program.

67

Percentage of poll respondents who chose lice over Congress. Yes, lice.

58

Percentage of poll respondents who chose a colonoscopy over Congress.

41

Percentage of poll respondents who chose legendary bad guy Genghis Khan over Congress. No, Congress didn’t win this one as only 37% chose Congress.

45 Percentage of poll respondents who chose cockroaches over Congress.

Again, Congress did not win as only 43 percent chose Congress.

DAVID SHANKBONE

49 Percentage of poll respondents who chose Congress over the ubiquitous Kardashians, who were only chosen by 36 percent.

Congress also managed to win against Lyndsay Lohan, Fidel Castro, gonorrhea and meth labs.

52%

3,500

Percentage of Pennsylvanians who approve of the lawsuit Gov. Tom Corbett brought against the NCAA according to a poll by Public Policy Polling, which also showed 62% of Pennsylvanians think the sanctions against the school were too strict, compared to only 27% who think they were ‘about right’ and 8% who think they were too lenient.

Estimated number of large murals across Philadelphia, one of the reasons the city was named in Business Insider’s “15 Hottest American Cities of the Future.” The website also ranked Philadelphia as one of the 10 Cities with the Fastest Growing Wages in America.

2,000

27%

Approximate number of patents awarded to Philadelphia-area applicants, one of the reasons the website 24/7 Wall Street named Philadelphia one of the six most innovative cities.

Percentage of Pennsylvanians who approve of the way Gov. Corbett has handled the Penn State situation according to a poll by Public Policy Polling.

111

52%

Number of destinations serviced by U.S. Airways after they announced nonstop flights to and from Salt Lake City, Utah.

The airline makes 462 weekday departures from Philadelphia International Airport.

Percentage of Pennsylvanians who disapprove of the job Tom Corbett has done as governor. About 38% approve and that -14 net approval ties him for the 4th most unpopular sitting Governor Public Policy Polling has polled on.

2

Philadelphia’s ranking among readers of Travel + Leisure for street food and hamburgers.

The same magazine named Philadelphia the most sports-crazed city in the country.

41%

PHOTO BY B. KRIST FOR GPTMC

Percentage of Pennsylvanians who said they would vote for Gov. Corbett if he ran for re-election against congresswoman Alyson Schwartz.

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