erie magazine | august/september 2010
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ERIE Magazine | August/September 2010TRANSCRIPT
Accelerating Erie’s Manufacturing, Transportation and Technology
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• The Takt Triangle: Generating Global Business Leads for Area Manufacturers • Inland Port Project to Connect Erie to the World • Erie Technology Incubator Preparing New Tech Companies for Success
S P E C I f I C A T I o N S
©2010 Erie Regional Chamber and Growth Partnership. All rights reserved.
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Save the DateErie Regional Chamber & Growth Partnership2010 Annual fall Member festWednesday, September 29 4-9 p.m.Shades Beach Park Pavilion in HarborcreekTickets: $100 (tax and gratuity included)Reserve Your Tickets Today!Call (814) 454-7191 or email [email protected]
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contents[ [
Erie regional Chamber and Growth Partnership Mission StatementLeadership to attract, retain and expand business.
Board of DirectorsPeter BalmertJohn J. BarberDr. Donald L. Birx John C. BloomstineC. Angela BontempoKurt F. BuseckCarl M. CarlottiTerrence W. CavanaughRosanne CheesemanGary L. Clark Joel DeutermanHarvey E. Downey Mary L. EckertDr. Antoine M. Garibaldi Thomas C. HoffmanThomas KennedyChuck KnightLeonard Kosar John P. Leemhuis Jr. President/CEOJim Dible
Vice President, ChamberClaudia Thornburg
Vice President, Economic DevelopmentJacob A. Rouch
Vice President, Growth PartnershipMary Bula
EditorMatthew Cummings
Contributing Writers Amanda Prischak
Design Tungsten Creative Group
for Advertising Information Julie Graff, Sales Executive 814.454.7191; [email protected]
Staff Matthew Cummings, Director of Marketing & Communications Sara Galbreath, Sales Executive Julie B. Graff, Sales Executive Melanie A. Johnson, Business Retention & Expansion Program Manager Doug M. Massey, Workforce Development Coordinator-Training Cathy Noble, Events Coordinator Michael Pistone, Director of Research Linda Robbins, Accountant Susan M. Ronto, Membership Coordinator
814.454.7191 • fax: 814.459.0241 • www.EriePA.com 208 East Bayfront Parkway, Suite 100 • Erie, PA 16507
Above: More than 25 business and community leaders completed the Chamber’s Erie Ambassador program this spring and were recently honored during a graduation ceremony at the Watson-Curtze Mansion. For information on the Ambassador program, please contact Cathy Noble at [email protected]
On cover: Manufacturing remains one of the top wealth and job generating industries in northwest Pennsylvania. In the Takt Triangle—the manufactur-ing center of excellence bound by Erie, Cleveland, Pittsburgh and Buffalo—there are more than 25,000 manufacturers. The capabilities of manufacturers in our region are extremely diverse; from contract manufacturers and job shops to precision machinists and injection molders. Read more on page 6.
President’s Perspective ...................... 2
Welcome New Investors ................3-4
The Takt Triangle: Generating Global Business Leads for Area Manufacturers .................. 6-7
Connecting Erie to the World...........................................8-10
Ready, Set, Launch ....................... 12-14
Chamber’s Business Retention and Expansion Program Works With More Than 200 Local Companies ........................................18
Way to Grow! ....................................20
2010 Fall Member Fest ..................23
Erie Regional Chamber and Growth Partnership Magazine www.EriePA .com August/September 2010
John T. Malone James E. Martin James W. MartinMichael P. MartinMarlene D. MoscoJack MunchJames R. NapierDavid PoorJames Rutkowski Jr.Matthew Schultz Nick Scott Jr. Ronald A. SteeleNoreen A. Stegkamper David M. TullioRussell S. WarnerMichael WeberThomas J. Wedzik Matt Wiertel
perspectivepresident’s[ [
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“I just want to know someone is doing something to try to help.”That quote from an unemployed Erie person came to mind when I read the stories in this edition of ERIE Magazine. Reading about the Inland Port Project, the Erie Technology Incubator and the Takt Triangle should give that person and all of us confidence that strategic, collaborative and very practical initiatives exist to bolster our local economy today and into the future.
Those three initiatives focus on what we are good at today (manufacturing through Takt Triangle), what we need to do to embrace new technologies going forward (Erie Technology Incubator), and helping to define our region’s future by capitalizing on what defined us from the beginning (Inland Port Project). As you read, think of these as long term, mid-range and immediate economic development efforts.
LoNG TErM: The Inland Port Project, led by the Economic Development Corporation of Erie County and CEO John Elliott, will take seven to 10 years to complete. It will establish a logistics park on a 400-acre parcel housing warehouse and distribution centers and intermodal transfer terminals. It will redevelop the ports of Erie and Conneaut, Ohio, so that Lake Erie can better connect to the Port of Montreal and the St. Lawrence Seaway-to-Atlantic Maritime routes. It will coordinate a weekly Erie-to-Montreal ship liner service that could process 20,000 containers per year.
“This initiative seeks to grow the region’s logistics and shipping industries,” Elliott says, “which will not only create direct employment, but also make regional agriculture, manufacturing, timber and other industries more competitive in the world market.”
MID-rANGE: The Erie Technology Incubator (ETI) services 20 client companies from its 33,000 square foot home on West Eighth Street in downtown Erie. It was the vision of Gannon University President Antoine M. Garibaldi, and today is led by Russell Combs, a business incubator veteran of 27 years.
Now in its third year, ETI and 65 community mentors work with client companies for about three years until they “graduate” from incubation. Combs predicts that over the next 15 years ETI will graduate 35-50 companies, each with 25-50 employees. Even at the low end of the prediction that’s almost 900 new jobs in advanced and innovative technology companies.
IMMEDIATE: Our Takt Triangle initiative is a virtual, membership-based database connecting manufacturers to potential customers in a most efficient way. “Takt” in manufacturing terms is the shortest amount of time needed to create a profitable product.
Takt Triangle grew out of business attraction travels by Jake Rouch, vice president of Economic Development at the Erie Regional Chamber and Growth Partnership (ERCGP). He noted that while many companies might not have immediate plans to look for new places to grow, they always had a need for suppliers and/or contract manufacturers.
Takt Triangle includes the manufacturing-dense area bounded by Erie, Pittsburgh, Cleveland and Buffalo, and will be marketed as a global manufacturing center of excellence.
“To have a partner proactively driving new and potential customers to Snap-tite not only helps me grow my business, but also enhances our region’s economy,” says Gary Clark, Snap-tite vice president. “The ability to get connected to people all over the world who are in need of what we manufacture is priceless, and this does just that.”
So there ARE efforts to help that unemployed person I quoted at the outset and to create family-sustaining jobs now and into the future.
You can read more about each of these in the pages that follow.
I’ll also be happy to visit with you about these efforts and anything else at our Annual Fall Member Fest at Shades Beach Park Pavilion in Harborcreek on Wednesday, Sept. 29. It’s a great party with lots of good food and networking from 4-9 p.m. I encourage you to get your tickets today from ERCGP Events Coordinator Cathy Noble ([email protected]).
I look forward to seeing you there!
welcome new investors[ [We look forward to seeing you at these networking events for Chamber investors.
Please RSVP to the Chamber at (814) 454-7191 or [email protected].
Reservations required name tags will be provided.
If you know a company or organization that wants to invest in Erie and in their business, please contact Sara Galbreath, sales executive, at (814) 454-7191 or [email protected].
(continued next page)
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August 12, 2010 Iadeluca Chiropractic 1334 West 26th Street, Erie 5 - 7 p.m.
october 14, 2010 Springhill Senior Living 2323 Edinboro Road, Erie 5 - 7 p.m.
September 16, 2010 St. Vincent - Yorktown Plaza 2501 West 12th Street, Erie 5 - 7 p.m.
S i lv e r i n v e S t o r
Port Erie Plastics, Inc.Offering total solutions in plastics processing—from injection molding to structural foam and extrusion. Offering nearly 90 molding machines, a full-service tool room and complete distribution warehousing from a 575,000 square foot facility.Mr. John Johnson 909 Troupe Road Harborcreek, PA 16421-1098 (814) 899-7602
i n v e S t o r S
Georgann M. richard, LSWPsychotherapy: industrial, group and maritalMs. Georgann Richard 3939 West Ridge Road Suite B50 Erie, PA 16506 (814) 868-2600
Avalon HotelFull service hotel and conference center with 192 rooms and more than 30,000 square feet of meeting and banquet space. Ms. Jenna Lombardo 16 West 10th Street Erie, PA 16501-1487 (814) 459-2220
Grape Arbor Bed & BreakfastRelax in elegant and comfortable accommodations in side-by-side mansions on Main Street in downtown North East. Eight rooms available with private bath (some with jacuzzis), wi-fi, television and four-course gourmet breakfasts.Ms. Peggy Hauser 51 East Main Street North East, PA 16428-1340 (814) 725-0048
H&H Machined Products, Inc.Manufactures custom precision machined parts for a wide array of OEM applications. Founded in 1980, and headquartered in Fairview Township, H&H specializes in all types of machining and sub assemblies.Mr. Andrew Foyle 2540 Manchester Road Erie, PA 16506-1008 (814) 838-6801
KMX InternationalAsset-based export logistics company specializing in project cargo including rigging, heavy haul trucking, export packaging, warehousing, and project management logistics.Mr. Steve Frank 2nd & Grand Streets Hamburg, PA 19526 (814) 440-6842
All About Smiles, Inc.A practice that strongly believes in comprehensive treatment planning, preventive dental care, and optimal dental health —achieved by maintaining, restoring, and enhancing the natural beauty of your smiles.Ms. Joanne Westwood 6660 Peach Street Suite C-12 Erie, PA 16509 (814) 866-8650
City Motel/ Dawson rentalsCentrally located and family-run facility in downtown Erie. Affordable rates for short- or long-term stays and within walking distance of major downtown employers. Also owner of rental properties throughout the Erie area. Member of Better Business Bureau and Apartment Association of NWPA.Ms. Ferita Dawson 344 East 6th Street Erie, PA 16507 (814) 455-7594
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welcome new investors continued[ [
If you know a company or organization that wants to invest in Erie and in their business, please contact Sara Galbreath, sales executive, at (814) 454-7191 or [email protected].
Gutters unlimitedProfessionally installs customized, seamless gutters and downspouts fabricated on-site with the latest equipment. Exclusive dealer of the Leaf Shield gutter cover system. Locally owned and serving Erie since 1992.Ms. Stacey Gadley 173 East Main Street Girard, PA 16417 (814) 774-3524
Employee Insights, LLCOffers a variety of services and resources to identify, coach and develop the right people for organizations so they can grow and prosper. Specializes in management assessment, leadership development, organization surveys and employee retention.Mr. Jay Fritzke P.O. Box 444 North East, PA 16428 (814) 725-8321
Shred-itSecure document management company offering peace of mind that confidential documents are securely handled and destroyed, eliminating an information security breach. Confidential document management solutions and destruction done right and onsite.Ms. Shawn Martin 5480 Cloverleaf Parkway Unit #7 Cleveland, OH 44125 (440) 243-8500
rogan InvestigationsRogan Investigations is a full service private detective agency that brings with it more than 25 years of both defense and prosecution experience. Rogan Investigations will provide the highest quality support at low cost to all clients.Ms. Laurie A. Rogan 1001 State Street Suite 1400 Erie, PA 16501 (814) 480-5788
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I made the
From left to right: Dan Franks, Leah Manino, Lou Sherwood, Brian Volmer, Donna Carlino, Gary Marz, and Steve Carman.
MEMBER FDIC
Northwest welcomes Steve Carman Vice President, Commercial Lending After years as one of Erie’s most highly respected relationship managers in corporate banking, Steve has joined Northwest’s team of retail, mortgage, commercial lending and wealth management professionals in pursuit of serving your every banking need.
800 State Street, Suite 300, Erie, PA 16501(814) 461-6999
Northwest Direct: 1-877-672-5678 • www.northwestsavingsbank.com
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The Takt Triangle: Generating Global Business Leads for Area Manufacturers
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By Amanda Prischak
In manufacturing terms, “takt” refers to the shortest amount of time needed to create a profitable product. Now, this concept that speaks to the necessity for efficiency in the manufacturing process will serve as a most apt name for a new initiative spearheaded by the Erie Regional Chamber and Growth Partnership.The initiative is the Takt Triangle, and it is a virtual, membership-based database that connects manufacturers to potential customers in the most efficient possible way. But there is more to it than simply making a fast and beneficial connection: the Takt Triangle is also the name that will be used to identify the manufacturing-dense area bounded by Erie, Pittsburgh, Cleveland, and Buffalo, a region the ERCGP wants the world to know is a global manufacturing center of excellence.
Putting the Erie Region on the MapThe Takt Triangle grew out of the Tap Into Erie initiative after Jake Rouch, the Chamber’s vice president of economic development, noticed that many companies may not have immediate plans for a new location to grow, but they always had a need for suppliers and/or contract manufacturers.
“Northwest Pennsylvania is at the center of a huge and exceptionally strong component part and contract manufacturing region” he says. “So we knew we needed to build awareness that we are open for business and have things to offer beyond just land and buildings for the companies we met.” And so, in November 2009, work got underway on takttriangle.org, a database that not only connects northwest
Pennsylvania’s 1,700 manufacturers to the global marketplace, but also gives them unprecedented business-to-business opportunities among each other. With the trends showing that industrial sourcing increasingly starts with, rather than just includes, an online component, the Web-based format comes at an especially opportune time.
Like the regional designation, the Takt Triangle database also encompasses more than just Erie. Michael Pistone, ERCGP director of research, says that Erie can only benefit from thinking regionally and by inviting any manufacturer with operations in the Takt Triangle to join the database.
“In order to be competitive, you have to go beyond your immediate area,” he says in reference to the trend in economic development of working as a super region. “Reality is, Erie is part of a much larger economic region and we have to act accordingly. This super regional approach increases our attractiveness globally—as well as increasing our chances of receiving federal funding.” o far, the Chamber has applied for four federal and state grants to support Takt Triangle.
While many other regions of the country are moving away from manufacturing, Rouch says this initiative is the right move at the right time and presents a unique opportunity for the region to build on its strengths.
“Why would we want to run from 15-20 percent of our employment and wealth?
We want to run toward manufacturing because we still have a huge population of manufacturers—25,000, to be exact—in the Takt Triangle. Manufacturing is our foundation. To hold on to what we have, we have to go after it, or it will erode.”
How It WorksPerhaps the most unique feature of the Takt Triangle database is how the information is collected.
“Many databases fail because someone not connected with a company creates the entry,” Rouch explains. “This Web-based database lets a manufacturer log in, create, and constantly update their own entry.”
This model not only allows entries to be highly accurate, but also keeps the overhead—and by turn, the investment—to a minimum. Chamber investors can create an entry for free while any other Takt Triangle manufacturer is charged an annual fee of $350, a dollar amount that stands in stark contrast to fees upward of $20,000 that a manufacturer might pay to be listed in other online and print directories. The affordability factor of joining the Takt Triangle is something database users most appreciate.
“The opportunity to showcase the individual, unique, and specialty capabilities of my company for such a low cost is unbeatable,” says Jim Rutkowski, general manager of Industrial Sales & Manufacturing, Inc.
Because the Chamber is committed to making the database as resourceful as
possible, they plan on continually adding features to it; for example, an electronic bulletin board could allow manufacturers to buy or sell excess materials from each other.
Snap-tite, Inc., a leading manufacturer of hydraulic and pneumatic components, is showcasing its continued investment in CNC machining technology in the Takt Triangle’s Tap Into Manufacturing database.
The Takt Triangle: Generating Global Business Leads for Area Manufacturers
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Today and BeyondIn keeping with the goal to make the effort as regional as possible, ERCGP representatives have been reaching out to a wide variety of potential partners such as the Pittsburgh Regional Alliance; the Tech Belt Initiative, an effort championed by Congresswoman Kathy Dahlkemper that seeks to reinvigorate the Cleveland-to-Pittsburgh region; the Northwest Pennsylvania Industrial Resource Center; and the Regional Center for Workforce Excellence.
Matthew Cummings, ERCGP director of marketing and communications, also reports that the Takt Triangle
will be promoted through national trade shows, industry publications, direct mail, and traditional advertisements.
“We are also conducting focus groups this summer to determine the publications and Web sites
most used by manufacturers so that we can target the most effective media mix to promote both the search and list side of the database,” he says. “We’ll be launching an aggressive branding campaign to market the Takt Triangle region as the ‘global manufacturing center of excellence.’”
The educational efforts also include teaching Takt Triangle database users how to use this resource to its full advantage. “The site is very user friendly,” Pistone says. “But we are walking everyone through, telling them all of the database’s capabilities and encouraging them to make their entries as detailed and comprehensive as possible.”
The Chamber’s goal for the Takt Triangle database, which debuted in March 2010, is for it to capture a critical mass of 1,000 users in the next eight to twelve months. Once this happens, they predict a domino effect of steadily increasing membership will take hold. This prediction is certainly within the realm of possibility if future users respond in the same way so many early adopters have.
“To have a partner proactively driving new and potential customers to Snap-tite not only helps me grow my business, but also enhances our region’s economy,” Gary Clark, vice president of Snap-tite, Inc. says. “The ability to get connected to people all over the world who are in need of what we manufacture is priceless, and this does just that.”
For more information on the Takt Triangle, visit takttriangle.org or contact Mike Pistone at [email protected].
By land and by sea, the Inland Port Project will establish Erie as a busy hub of transportation
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Connecting Erie to the World By Amanda Prischak
Timing, geography, extensive planning—these are the elements conspiring to make an ambitious new logistics project spearheaded by the Economic Development Corporation of Erie County (EDC) a reality.
The initiative is the Inland Port Project and it is actually a series of projects that leverage Erie’s strong industrial base, existing rail and port infrastructure, and close proximity to North America’s largest mega-regions.
“In the last several decades, our region has struggled to answer: ‘What’s next for us economically?’” John Elliott, president and CEO of the EDC, says.
Enter the Inland Port Project, which may very well provide an answer to that question.
Opportunities Amid ChallengesOver the next few years, the nation’s highways and, to a lesser extent, railroads will face extreme congestion challenges just as container transportation is expected to increase.
The Inland Port Project seeks to create a solution to this challenge by establishing a logistics park on a 400-acre parcel of land that will house warehousing and distribution
centers as well as intermodal transfer terminals; by redeveloping the ports of Erie and Conneaut, Ohio so that Lake Erie can better connect to the Port of Montreal and the St. Lawrence Seaway-to-Atlantic Maritime routes; and by coordinating a weekly Erie-to-Montreal ship liner service that could process upwards of 20,000 containers a year.
The Saint Lawrence Seaway Development Corporation, a partner on the project, fully supports the effort.
“It will have immediate benefits to the regional shippers through significant cost savings,” Terry Johnson, Jr., administrator for the Saint Lawrence Seaway Development Corporation, says. “The public will benefit through the savings from a more efficient mode of transportation, reductions in pollution and congestion, and infrastructure savings on our urban highways.”
He further adds that he and the St. Lawrence Seaway Management Corporation, which is the United States’ Canadian partner, also endorse the Project’s container shipping operations.
“Both Seaway Corporations are committed to bringing containerized shipping back to the Great Lakes because doing so will simultaneously increase Seaway traffic,
By land and by sea, the Inland Port Project will establish Erie as a busy hub of transportation
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Connecting Erie to the World
helping both of our nations diversify traffic which for too long has been largely restricted to bulk commodities and steel.”
Indeed, the port situation in the United States is in need of improvement, with short sea shipping being all but nonexistent in the Great Lakes region over the past 50 years and with ships waiting upwards of two days to dock at busy eastern seaboard ports including the port of New York & New Jersey.
“We are in an excellent position to promote shipping through Lake Erie and the St. Lawrence Seaway,” says Rachel McCreary, assistant project manager at the EDC. “With the Inland Port Project making it possible for smaller vessels in Lake Erie to transport their products to large vessels, marine carriers can save time and money by avoiding the hassle of heavily congested East coast ports.”
Further working to the Port of Erie’s advantage is the fact that it is equidistant from two of North America’s largest emerging mega-regions, Chicago and New York.
A Collaborative EffortFrom the time Elliott developed the idea in 2008, the Inland Port Project sought to develop relationships with a variety of organizations. Among the early partners on the maritime side were Great Lakes Feeder Lines, LLC and the Saint Lawrence Seaway Development Corporation.
Another major partner on the economic development side is the Northwest Commission, a Gold Investor in the Chamber and business development organization serving eight counties in northwestern Pennsylvania.
Executive Director Denise McCloskey says the organization she heads is helping the Inland Port Project in many ways.
“Our staff is visiting businesses in the region to raise awareness about the project as well as to determine their shipping needs.”
One way to determine shipper’s needs is through an online survey. Elliott notes that even though several high-level studies show that intermodal rail-truck-ship terminals would benefit regional manufacturers,
“we must gain a better understanding of the volume and movement of freight into and out of our region— and the shipper’s survey is designed to do just that.”
He invites manufacturers, freight-forwarders, and logistics companies to take the survey at erieshippersassociation.org.
Another major development in the project’s outreach efforts occurred in February when the EDC established a memorandum of understanding with the Conneaut Port Authority in Ohio to further develop the Conneaut Port. It was a move intended to capitalize on existing infrastructure at the Port of Conneaut, which also reaches into the state of Pennsylvania. According to officials, redevelopment of this port would lead to more jobs in the region.
Inland Port Project representatives have also reached across international boundaries to Nova Scotia-based Melford International Terminal Inc., a privately-held, $300 million marine terminal currently under construction that will feature a deep water port to accommodate the world’s largest vessels. That company’s chief executive supports the Inland Port Project and is discussing a possible partnership with EDC.
(Continued on next page)
Erie’s Logistics Plus (LP), through its owner Jim Berlin, is Great Lakes feeder Line’s (GLfL) main shareholder and a strong supporter of modern short sea shipping on the Great Lakes. GLfL’s Dutch runner is a multipurpose vessel with cranes and a roll on roll off ramp capable of carrying 4,000 metric tons of cargo. LP is a Silver Investor in the ErCGP.
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A Source of Economic Growth and PrideThe $50 million Inland Port Project—slated to be completed in seven to 10 years—will benefit the community in many ways. First among them is the direct creation of jobs such as dock workers, equipment operators, truck drivers, and clerical and security workers.
There will also be a ripple effect of increased employment in support industries such as ship and equipment repair, logistics consulting, specialized legal and insurance services, construction, and customs and border control. Finally, there will be the increased commercial activity resulting in faster and more efficient transportation of goods to and from the region.
“This initiative seeks to grow the region’s logistics and shipping industries, which will not only create direct employment, but also make regional agriculture, manufacturing, timber, and other industries more competitive in the world market,” Elliott says.
Now, in the wake of a May 2010 kickoff conference in which regional manufacturers gathered to introduce the Inland Port Project to the community, people from many organizations in collaboration with the EDC are hard at work to bring the initial projects to fruition in the next twelve months.
As an investor in the Erie Regional Chamber and Growth Partnership, the EDC has been able to use Chamber databases to keep track of local importers and exporters. Later, the two entities will work together on business attraction initiatives.
In the end, the Inland Port Project is both a nod to Erie’s past and an investment in its future.
“The lake, railroads, and highways have made large contributions in defining our region,” Elliott says. “We see the opportunity to again create a maritime and mercantile economy that will become not only a source of economic growth, but a source of pride for the region.”
The GLfL’s recently acquired Arctic Sea is a multi purpose vessel with two cranes capable of carrying 5,000 metric tons of cargo (the equivalent of 250+ truck loads).
(Continued from page 8)
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Industry Partnerships are a key institutional innovation for meeting the skills needs of businesses, the career goals of workers and the economic development goals of the Commonwealth.
The Advanced Diversified Manufacturing Industry Partnership is dedicated to bringing back employer partners, for the proper reason—the synergy necessary to continuously define their industry and the manner in which it will be sustained to support Northwest Pennsylvania.
• Our goal is to gather as a multi-employer unit focusing on improving our region’s manufacturing competitiveness.
• We are dedicated to creating a comprehensive retention and growth strategy that will support regional manufacturing businesses.
• We continue to align regional resources to meet our companies educational and business resource needs.
For additional information and to learn how you can join the Advanced Diversified Manufacturing Industry Partnership, please contact the Northwest Pennsylvania Workforce Investment Board at (814) 333-1286 or visit www.nwpawib.org.
Joy Sherry, Director of Human Resources, Dad’s Pet Care and ADM IP Member
This ParTnershiP
creaTes an incomParable
oPPorTuniTy for us.
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Ready, Set,
Launch Erie Technology Incubator
prepares a new breed of businesses for success
Boilers, engines, appliances—Erie is famed the world over for its manufacturing might. But what is not as well known is that the Gem City is increasingly becoming home to a diverse group of technology-based enterprises that, at first blush, one would expect to find only within the confines of Silicon Valley. But more on them later.
Right now, we shed light on the Erie Technology Incubator (ETI), the small organization that is making a big push to grow and retain innovative companies being launched right in our backyard.
A vision Becomes A realityThe establishment of the ETI began when Gannon University purchased property at 130 West 8th Street in 2001. Though several ideas were floated on how to use the space, Dr. Antoine M. Garibaldi, President of Gannon University (a Gold Investor in the ERCGP), envisioned establishing a technology-based business incubator as a key strategic initiative that would also give back to the Erie community. So, after he convened a steering committee, had his hunch confirmed by an outside feasibility study, and ordered extensive renovations to the building, work got underway to secure state and federal funding. Also on the agenda: a national search for an executive director. That process whittled the many applicants down to Russell Combs, a business incubator veteran of 27 years who recently launched three incubators in Virginia.
“I was fortunate enough to not only be their candidate of choice, but to also have an entire year to set all the pieces in place before we opened,” Combs says. Those preparations involved applying the $4 million in state funding ETI received, establishing the organization as a 501(c)(3) nonprofit, and hiring two full-time and one part-time employee before it opened for business on October 3, 2008.
A Business for BusinessesAny advanced technology startup company in the scientific, information, or engineering arenas can apply to be a client company within ETI. Once accepted, the incubation process follows a three-step process: an intake process that assesses the entrepreneur’s attitude and aptitude and evaluates his or her product; a mentoring process; and finally, after a stay that averages 36 to 42 months, graduation.
Clients have the option of being a resident within in the 33,000-foot
By Amanda Prischak
13(Continued on next page)
incubator or of being an affiliate that develops its technology off site while still receiving mentoring. The invaluable opportunity to be mentored starts with Combs and his team evaluating a company’s weaknesses. Then he carefully pairs his client with a business mentor.
“We have a tremendous group of over 65 individuals in our database who stepped up to the plate,” Combs says. “Their services are vital because these startups don’t have the cash flow to hire consultants.” Mentors, who
include retired executives, Gannon alumni, and civic-minded members of the community, donate one hour of their time each month to help these aspiring entrepreneurs succeed. ETI typically pairs clients with two or three mentors, tailoring the match over time in order to help these early-stage companies overcome each new challenge that arises during the incubation process.
Because of a unique partnership with Gannon’s Small Business Development Center, many other
support services—workshops, market research and planning, assistance in attracting investor capital and government funding—are also available to ETI clients. Sometimes, though, the best help comes from the ETI clients themselves.
“I started holding casual networking lunches each month where all the clients get together,” Combs says. “The price is simply to share a success and a challenge with the group. Sometimes, clients develop a partnership because of these lunches.”
A Promising futureCourtesy of support from Gannon University, funding from federal and state grants and Ben Franklin Technology Partners, and rent and service fees, ETI currently services 20 client companies as it nears its two-year anniversary. Considering the products of three soon-to-be graduates gives a good glimpse into the many kinds of enterprises ETI assists: M-Dot’s technology grants cell phones the capability to redeem coupons; DAGIR Co. uses intelligence software to target the location of methamphetamine labs; and CE Convergence allows individuals to track their continuing education credits. The story behind this final company from this trio is worth telling.
“Two gentlemen from Chicago with an idea for a technology that would meet an unmet need in the market—namely, a method of tracking continuing education credits for those in the accounting, legal, and insurance industries—visited a friend in Erie,”
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(Continued from page 13)
Combs says. That friend referred his friends to Combs, who told them about incubators in their area. Yet three weeks later, they were again calling Combs, this time to say they were returning to Erie.
“They told me that, yes, all those other incubators have those services,” Combs recalls. “But they said they didn’t see the same can-do attitude and energy they saw while they were in Erie.”
Besides word-of-mouth referrals, budding entrepreneurs learn about ETI on the Internet or from the Erie Regional Chamber and Growth Partnership. “In addition to being a great resource in helping us figure out who to contact to help our clients, the Chamber referred half a dozen companies to us,” Combs says.
Combs predicts that ETI will graduate between 35 and 50 companies that will each hire between 25 and 50 employees over the next 15 years. And companies of this size, he says, are at the heart of true
economic development and growth.
“Everyone wants big companies,” he explains. “But when those big companies leave, it is hard for a community to recover. This is not the case with technology companies that, unless you are a Google, typically employ a maximum of 50 employees.”
And though federal law bars business incubators from contractually obligating their clients to remain in the town or city from which they
launch, research shows that 84 percent of companies coming out of incubators nonetheless remain in their communities. Combs says he often reminds his clients that not only are tax dollars invested in them, but that the community is banking on them to stay.
“With help from the Chamber, we are doing everything we can to ground and prep these companies for success right here,” he says.
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The Regional Career & Technical Center is a leading provider of quality career and technical training programs for adults. We offer a wide variety of courses, affordable tuition and convenient class schedules.
RCTC specializes in customized training that is tailored to meet the needs of your organization. From entry-level to advanced training, let RCTC develop a program for your employees based on a time frame, location and
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Register for classes August 16 – 27. Term I classes begin the week of September 6.
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Where entrepreneurship and innovation meetInnovative minds at Gannon University have the unique opportunity
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“Our goal is to reach out to our existing business base to make sure they continue to grow and flourish in Erie County, and that they have the resources necessary to do so,” ERCGP Vice President for Economic Development Jake Rouch said. “We want our existing businesses and entrepreneurs to know that we are grateful for the jobs they create and appreciate having them in Erie, and we want them to know that the ERCGP is the place to go to access the wealth of resources provided by the 14 organizations in our Lead Economic Development Team and our various partners.”
During a fiscal year shortened to six months because of the delayed approval of the state budget, BREP industry representatives reached 208 local businesses to discuss their unique business management; financial assistance or capital; market development; product development; site location/preparation; infrastructure; technology; workforce and government needs. These visits resulted in 105 customer action plans from an array of economic development partners to address these businesses’ hiring, training, marketing, financing and other expansion needs.
Workforce development is consistently at the top of companies’ needs. The ERCGP, in partnership with the CareerLink, Regional Center for Workforce Excellence and Erie County, employs a full-time workforce development specialist to help match companies with available resources.
Chamber’s Business Retention and Expansion Program Works With More Than 200 Local Companies During Shortened 2009-10 Fiscal Year
In 2009-2010, more than $657,000 in workforce training funding was distributed to nearly 70 Erie County companies.
BREP Program Manager Melanie Johnson called these numbers impressive and said that the direct assistance provided through the region’s economic development system has allowed local businesses to stay competitive, remain in the community, and even expand.
“A healthy local economy depends on the well-being of our existing investors,” Johnson said. “While the Chamber is also coordinating the region’s business attraction efforts through our launch of ‘Tap Into Erie’, we recognize that ‘job one’ is to help local businesses survive and grow in the Erie region.”
In Erie, Rouch said, 90 percent of all new jobs are created by existing companies so it makes sense to have a strong and supportive focus on the region’s existing business base.
“Our most cost-effective approach to economic development is to help our existing base grow,” he added.
BREP is a program funded by the Commonwealth of Pennsylvania that serves to listen to companies’ needs and identify all of the appropriate resources that can benefit businesses and enable them to thrive in Pennsylvania. There is no cost for a business to visit with a BREP representative to find out if there are tools available to help them grow. The business retention program is part of Pennsylvania’s state-wide effort to retain and grow existing businesses. Since 2000, the region’s BREP program has provided more than 3,000 economic development assistance referrals to Erie County companies.
To schedule a BREP visit, contact Melanie Johnson at [email protected] or call (814) 454-7191, ext. 143.
Erie County’s Business Retention and Expansion Program (BREP), coordinated locally by the Erie Regional Chamber and Growth Partnership (ERCGP), reached more than 200 businesses during the first six months of 2010, generating more than 100 customer action plans (CAPs) that resulted in direct economic development assistance.
During the first six months of 2010, the BrEP team:• Met with 208 local businesses to discuss their needs• Developed 105 customer action plans (CAPS) to identify and provide assistance• Referred a local manufacturing company to a service provider who helped them realize an annual energy tax savings of approximately $200,000• Distributed more than $657,000 in workforce training funds to 69 local companies
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In addition to the kids and family TV series, Wellsville, Z3 Concepts, Inc. continues to provide creative video for sales, marketing and training needs.
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The Erie Regional Chamber and Growth Partnership recently helped cut ribbons at a number of new or expanding investors. We are excited for your success and appreciate the opportunity to help you mark these momentous occasions!
Way to Grow!
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Take Action Erie is a regional tool allowing your voice to be heard on issues that matter most to you and your business
Keep up-to-date on legislative news and issues
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