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Doing business in Pennsylvania: A rust-belt renaissance
Despite some outside misconceptions, Pennsylvania is a state with a thriving and growing business environment. Though not widely known, Pennsylvania's attractive business atmosphere has not gone unnoticed. The March 2001 issue of Site Selection magazine, for instance, ranks Pennsylvania No. 6 of its top 10 states in the nation, recording the highest total of new corporate facilities and expansions. The December 2000/2001 issue of Plants Sites and Parks ranks Pennsylvania as the No. 8 Bizsite Hot Spot in the U.S., and Business Facilities magazine ranked Pennsylvania as No. 3 of its top 15 states for growth in the biotechnology industry.
The elimination of some regulations, lower taxes, and state-- private sector partnerships have gone a long way to enhancing the state's business climate. The state also offers "certified-ready" sites, called Select Sites and SelecTech sites, for many business sectors and an array of funding programs that make business creation and expansion easy and profitable.
Business Climate
Pennsylvania is committed to continuing to provide a "friction-- free" business environment that has helped transform Pennsylvania into a leader among states in the race to attract investors and cultivate new industries.
Workers' compensation reform, regulatory reform, utility deregulation, electronic commerce legislation, and business tax reductions that allow companies to reinvest in development and expansion have saved companies and individuals billions of dollars. Some companies that came to Pennsylvania in 2001 are as follows: The retailer Marshalls' (a subsidiary of The TJX Companies Inc.) distribution center will create more than 1,100 jobs, the most ever created in a Keystone Opportunity Zone. The 1 millionsquare-foot facility is located near the Northeast Philadelphia Airport.
* The retailer Target's 1.6 million square foot distribution center in Chambersburg, Franklin County, will create at least 1,000 new jobs over the next three years.
* AT&T Broadband opened a national customer service center in North Fayette Township in Pittsburgh, creating at least 800 new jobs.
* Verizon Wireless opened a call center in Cranberry Township, Butler County, and added to its existing regional headquarters in Warrendale, Allegheny County. Verizon will create more than 700 jobs over the next three years.
* WalMart is building a regional distribution center in Coolbaugh Township, Monroe County, that will create more than 600 new jobs.
* Ingram Industries Inc. - a wholesaler of trade books, audio books, and magazines - is building the largest facility of its distribution center network in Chambersburg, Franklin County. It will create 500 new jobs.
* Siemens will build a new 400,000 square foot stationary fuel cell manufacturing plant in Pittsburgh's Munhall Waterfront Development. This project will result in the creation and retention of 500 jobs.
* Synergy Inc. is relocating its headquarters into a Keystone Opportunity Zone in the City of Chester, Delaware County, to support its expansion. It will create 500 new jobs.
* Harley Davidson is constructing a new manufacturing facility on the site of its existing assembly plant in York County, creating 275 new jobs.
Innovative Technology
Although Pennsylvania embraces a wide array of industries, the states' high-technology and biotechnology industries are experiencing tremendous growth and opportunity.
The Pittsburgh Digital Greenhouse is one of the state's boldest high-technology initiatives. With the goal of making western Pennsylvania a thriving center of system-on-a-chip (SOC) design technology, numerous companies - including Sony Electronics, Casio, Oki Electric, Cadence Design Systems, and Cisco Systems - have joined with Carnegie Mellon University, Penn State University, and the University of Pittsburgh to fund research that will cultivate future industry.
The Digital Greenhouse will leverage Pittsburgh's existing assets to create a cluster that initially will focus on the digital video and digital networking markets. Ultimately, the goal is to put innovations like SOC to work to develop a range of next-generation products - from "smart homes" with interacting appliances to simpler business travel with hand-held devices that allow users to send faxes, receive e-mail, and surf the Web.
International Business
Pennsylvania is extending its economic development efforts beyond America's boundaries to generate economic growth into the 21st century.
Trade missions to the United Kingdom, Canada, Asia, Poland, Israel, Ireland, South Africa, Mexico, and Australia have been key components in bringing more overseas companies and investment to Pennsylvania. Because of these efforts, Pennsylvania is home to operations for global heavyweights such as SAP, Bayer, Sony, and GlaxoSmithKline. Since 1995, total sales generated by the more than 300 companies that have participated in the trade mission has reached more than $92 million.
The Governor's Action Team - a coordinated group of export partners who provide guidance to companies seeking to market products on a global basis - is a major component in bolstering Pennsylvania's competitiveness in the global economy. Pennsylvania's Team Penn Export Network provides companies with the information they need to enter international markets, including market research and mentoring programs as well as financial assistance and technical support.
Pennsylvania's international marketing efforts have helped attract and retain companies from the United Kingdom, Japan, France, Switzerland, and other foreign business centers. International companies cutrently operating in Pennsylvania include Ahold Financial Services of the Netherlands, Martin Baker Aircraft of the United Kingdom, Schmalbach-Lubeca of Germany, Hoganas of Sweden, Suntuf of Israel, and Danieli Corp. of Italy.
Incentives for Business
Pennsylvania is embarking on new programs to meet the needs of its growing and increasingly diverse business community, developing next-generation partnerships that will guide the state in smooth transition into the digital economy, and cutting taxes along the way to make the state more business friendly.
The state has made good progress in lowering the cost of doing business within its borders, and a new approach toward business that calls for the treatment of job creators as economic development partners and the creation of business incentives has proven vital to growth.
Team Pennsylvania, created to maximize this approach, is a public-private partnership that bridges the gap between business and government. Composed of Pennsylvania business leaders across the state and six members of the governors' cabinet, Team Pennsylvania is a statewide network that provides comprehensive information and economic development resources to businesses considering expansion or relocation in the state.
The Team Pennsylvania Business Resource Network (BRN), located on the Team Pennsylvania Web site at www.teampa.com, is a connection to an enormous pool of information about doing business in the state. The BRN puts a wealth of menu-driven, easy-to-locate information at your finger-tips.
Like the Digital Greenhouse project, Select Sites and SelecTech Sites are cutting-edge partnerships that stand to spur significant development. The programs were developed as a collaborative partnership between the Team Pennsylvania Foundation and a consortium of electric, gas, rail, and telecommunication utilities, as well as key technology stakeholders from across the Commonwealth.
The initiative focuses on eight development categories: heavy industry, general manufacturing, light industrial/assembly, office - technical services center, office - call center, warehouse and distribution/logistics, research and development, and commerce development. The process of selecting potential sites includes an exhaustive examination of potential qualifications, including a detailed description of community resources, geographic location, potential client base, local utilities, and infrastructure and access to such resources as transportation and bandwidth.
Keystone Opportunity Zones
To combat the challenges that poverty and underdevelopment have on the state's entire business climate, Pennsylvania launched an initiative in 1999 called Keystone Opportunity Zones (KOZs). Using the market-based incentive of tax abatement, the KOZ initiative is designed to revive economically distressed urban and rural communities throughout the Commonwealth.
The KOZ initiative fosters private and residential reinvestment in these designated areas to regain the economic stability of these communities. Each KOZ has an opportunity plan that addresses crucial issues such as business attraction/retention strategies, educational improvement, crime prevention, housing reinvestment, and overall quality of life. Since its inception, KOZs have helped to create more than 10,000 new jobs statewide and retain more than 5,200 jobs.
The top 10 job-creating projects currently located in a KOZ include the following: Marshalls Philadelphia County; Excel Corp., Office Max, Big Lots, Haworth Inc., and FabCon Inc. - Schuylkill County; Duferco Inc. - Mercer County; Sears Logistics Services, Guard Insurance, and Office Depot - Luzerne County.
When businesses operate in Pennsylvania, they operate in a state that is a healthy blend of knowledge, progress, and tradition. From the eastern port and cultural center of Philadelphia, through the enticing Laurel Mountains, to the business and education centers in Pittsburgh, our state is rich with technology, industry, entrepreneurship, and innovation. Today, companies in Pennsylvania are finding abundant, skilled workers, fewer restrictions, and more opportunities than ever.
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