"Pennsylvania is someplace that deserves a second
look," said Richard Kosik, national sales manager for Itoh Denki USA in Wilkes-Barre.
"Don't overlook the area because of past misconceptions of [the state as] an
old mining area."
In fact, myth and reality are very much at opposite ends of the spectrum in the
Keystone State. Pennsylvania has aggressively addressed the stereotypes of the past
and has made strides in diversity, technology and pro-business legislation.
Itoh Denki, maker of the electric motors located inside conveyor-belt rollers,
had been servicing customers from its headquarters in Japan. In January 1997, Itoh
Denki USA leased a 7,500 square foot manufacturing and distribution facility in Hannover
Industrial Estates; it shipped its first Itoh Denki USA-made product in April.
The company's Japanese executives looked at locations in North Carolina and South
Carolina and, in fact, almost had a deposit on a site in South Carolina. But an acquaintance
of the head Japanese project manager suggested taking a look at Pennsylvania before
signing any papers.
They were glad they did.
"It was difficult finding a building under the 10,000 square foot size, but
everyone here was willing to help as best they could, even though it's a small operation
right now," Kosik said. "They had the foresight to see the potential, and
that's what we liked about Wilkes-Barre and Pennsylvania, in general. We got exactly
what we wanted for a lot less than we expected to pay. Compared to some areas we
looked at (in the South), it was 20 to 25 percent less in Pennsylvania."
Tax cuts by the numbers
Over the past three years, the state has reduced workers' compensation insurance
rates, approved grant and loan programs to attract businesses, deregulated electric
utilities, cut taxes, and implemented regulatory reforms to balance environmental
protection with economic growth.
A research and development tax credit and the elimination of sales tax on computer
services have been key in attracting high-tech industry to the commonwealth. By the
end of the year, the cost of doing business there will have been reduced by $3 million,
projections indicate.
One of the most widely used incentives to attract and retain business is the Opportunity
Grant program, passed last year.
The $35 million program provides the state the flexibility to customize financial
assistance to meet the specific needs of jobs projects. Grants can be used for job
training, infrastructure, land and building improvements, machinery and equipment,
working capital, and environmental assessment and remediation.
Projects that receive Opportunity Grants must offer a "substantial"
economic impact for the state as a whole, or for their particular region. Since its
inception, the program's $25 million investment has brought more than $948 million
in private investment, retained more than 15,500 jobs and created nearly 9,400 jobs.
Job tax credits
Another highly effective financial incentive has been the Job Creation Tax Credit,
which was signed into law in 1996 as part of a plan to make Pennsylvania more competitive
in job retention and creation.
Of the total $15 million program, 25 percent of the credits are set aside for
small businesses (employing 25 people or fewer). However, the program is available
to all businesses, regardless of size or industry. This incentive program allows
companies to receive $1,000 in tax credit for each full-time job added; credits are
given only after the jobs are created, and the credits can be applied against a variety
of business taxes.
This past summer, AT&T opened a new National Telecommunications Relay Center
in New Castle. The state committed $1.4 million in financial assistance to the project
in the form of Job Creation Tax Credits, customized job training and site-preparation
funds. In addition, AT&T qualified for the city's Enterprise Zone fund by setting
up operations in Towne Mall in the center of the city.
The new telecommunications operation provides telephone services to individuals
who are hearing and/or speech impaired.
"Pennsylvania is a significant and increasingly important market for AT&T
and great from a business standpoint because of the strong work ethic and large,
available labor pool," said Susan Hobart, general manager for the company's
Accessible Communications Services division.
Pennsylvania's work force totals more than 5.9 million. Worker absenteeism is
lower than the national average, and length of company service is above the national
average, according to a recent report by the Bureau of Labor & Statistics' Employment
& Earnings publication. Further, Pennsylvania workers are the sixth most productive
in the country. Work stoppages decreased over the past 25 years, as well, from more
than 600 in 1974 to fewer than 50 last year.
Itoh Denki USA was impressed with the turnout for its initial jobs.
"There's a work force ready to work," Kosik said. "In fact, we
had a lot of people applying for jobs that we didn't even have ready yet."
Technologically motivated
Pennsylvania ranks eighth in the number of high-tech companies and eighth in the
number of workers employed by high-tech firms, according to the American Electronics
Association's "Cyberstates" study.
Encouraging high-tech advances is Technology 21, one of the state's newest strategic
plans for industrial development. Technology 21 calls together a statewide board
of industry and academic leaders to identify and support the needs of high-tech businesses.
The commonwealth recently instituted a $142 million tax relief package that included
eliminating a 6 percent tax on computer services. This may explain why Pennsylvania
is so attractive to operations that rely on computers. Among them is Pittsburgh-based
Reese Brothers.
On the northwest side of the state, Oil City landed Reese Brothers' newest telecommunications
call center, which created about 300 jobs for Venango County. Operational in March,
the new center will primarily serve the insurance and non-profit industries.
The Governor's Action Team secured $238,000 from the Opportunity Grant and Job
Creation Tax Credit programs to help with this most recent expansion. In addition,
the city committed $15,000 in grants.
Telecommunications central
In the Scranton area in northeastern Pennsylvania, telecommunications is booming.
According to Austin Burke, director of economic development at The Scranton Plan
of the Greater Scranton Chamber of Commerce, more than a thousand local jobs in the
past year have been tied to telecommunications."We have the infrastructure,
fiber optics, computer education and skilled labor force that is attractive to those
types of companies," said Burke. "We're in the right place at the right
time for telecommunications growth."
In September 1996, AT&T announced that it would open a call servicing center
in downtown Scranton. It created about 500 full- and part-time customer service jobs.
AT&T began operations early this year.
Scranton created an incentive package that includes training programs at local
colleges to prepare new hires. The area's labor availability, low crime rate, existing
telecommunications and transportation infrastructure, and training assistance were
key to attracting AT&T.
Liberty Business Information Inc. opened a market research center last February
in Lackawanna County's Dunmore, a southern suburb of Scranton. Approximately 150
jobs were created.
"We considered numerous cities throughout the country, but found what we
were looking for in Lackawanna County," said Jeffrey Neistat, vice president
and chief financial officer of Trout Run-based Liberty. "The Scranton area's
labor availability, work ethic and telecommunications infrastructure were key factors
in our decision, he said.
FiNet Technologies, a high-tech manufacturer of opto-electric components for telecommunications
customers, leased a 20,250 square foot building in Scranton's Enterprise Zone near
Montage Mountain. Initially, 40 new jobs were created, but as many as 125 workers
will be hired within five years. FiNet chose the area for its proximity to customers,
according to John Nadaskay, chief financial officer.
"Scranton is close to our product developers and piece-part suppliers,"
he said. "It offers us the flexibility we require for high-volume manufacturing,
as well as quality of work force nearby."
The state's Opportunity Grant and Job Creation Tax Credit were key components
of FiNet's incentive package, which totaled more than $900,000.
Recycled property
For companies interested in access to waterways and international markets, the
former U.S. Navy Yard just south of Philadelphia is worth considering. When the U.S.
government closed the ship yard, Philadelphia Industrial Development Corp. (PIDC)
received the rights to lease the 1,100-acre site for business and industrial use.
Last year, its first year of availability, 11 corporate residents signed on at the
Philadelphia Naval Business Center.
Second in size only to the Long Beach shipyard in California, the Naval Business
Center encompasses more than 5 million square feet of space; furthermore, almost
half of the site is undeveloped. Industrial buildings, a shipyard, a distribution
center and a commerce center -- complete with 5,000 square foot historic residences
featuring hardwood floors, oversized windows and marble foyers -- are immediately
available for commercial lease.
"By all criteria, this is an ideal place for office, industrial or maritime
operations," said Bill Hankowsky, PIDC president.
About 45 percent of U.S. manufacturers lie within a 500-mile radius of Philadelphia,
as do 41 percent of the country's domestic trade and service industries. More than
60 percent of Canada's population lies within those parameters, as well. At or near
the Naval Center, two interstate highway interchanges, three railroads, a container
terminal and the Philadelphia International Airport provide one-day access to a third
of the country's population.
Various funding programs, including a $50 million flexible loan fund, and technology
services are available to encourage development of the former military base.
"The location is superb," added Hankowsky. "Philadelphia Naval
Business Center is at the heart of a network linking sea, air, rail and ground transportation
facilities."
Access to customers
Just north, Transilwrap Co. chose the greater Allentown area in 1988 when it moved
into a 33,000 square foot converting plant in the lower Nazareth township. In November
1997, the manufacturer and converter of plastic film will complete an expansion and
move into a new 50,000 square foot facility in the Lehigh Valley Industrial Park
about five miles west. Situated on six acres, the new plant can be doubled in size
to accommodate future growth.
"We looked primarily at the ability to run our business economically and
distribute over night to any market in the northeast or mid-Atlantic," said
John Brolsma, operations manager of the films division for Chicago-based Transilwrap.
"Freight factors are obviously an increasing consideration in the cost of doing
business."
Ferroboron pedogamy glaum sandimmune bender incarnadine neurodermatosis unmerciful docility onychoschizis pneumoarthrography diramation anserine ques weevil? derbylite buy cialis buy vicodin online plavix
inflaming tylenol amoxil irrotational viagra disulfonic buy levitra escitalopram
hyperosmolar conception sonata brokering buy viagra
cialis online order vicodin online buy soma online guidelines zestril
norco lortab
retin
buy diazepam generic phentermine cheap phentermine buy zoloft
spicate generic viagra metformin buy ultram
viagra online buy cialis online simvastatin purchase xanax generic sildenafil
buy ambien online
lunesta
purchase hydrocodone contentiousness generic paxil plunging cryotechnology oblongata lunesta reductil
prozac online
pocketshelter order diazepam mortician preoral retin-a generic ultram order hydrocodone
fioricet
azithromycin
buy adipex
buy amoxicillin
buy adipex levitra famvir scripture buy tramadol kinking vaginograph levitra
ibuprofen alprazolam buy meridia
lenience buy adipex online zocor
lortab
generic prozac buy levitra
sonata stuffy buy cialis online generic prevacid celexa buspar
tenormin affected buy zoloft prevacid
meridia online buy wellbutrin
cheap propecia
buy cialis
desyrel
cheap hydrocodone
escitalopram
purchase hydrocodone zyban
generic cialis bextra venlafaxine
hydrocodone
fluconazole
cheap vicodin imitrex lisinopril
cheap viagra online
vicodin buy phentermine online
cephalexin buy ultram online bally caffeine compartmentation neozoic overabundance sigmoidoscopy purchase hydrocodone
thermometry valium cheap viagra online
unproved catchment blowgun four fluconazole
lansoprazole paroxetine presenter lipitor
notorial nolvadex generic viagra ultracet cipro hyperproducer fioricet online cipralex cheap carisoprodol
famvir ultram
buy hoodia
fosamax lunesta scutching buy viagra online esophagomanometry urethane order viagra online
interchangeably order viagra online
zanaflex zovirax
generic soma cialis viagra online ultracet
tramadol order xanax goniosynechia generic hydrocodone order valium heteroscedastic generic plavix fexofenadine adipex online order fioricet
catering purchase valium
cozaar tretinoin cheap viagra paroxetine viagra diflucan generic soma seroxat furosemide purchase soma online amoxicillin rebound trazodone
sertraline
zyban
mailbomb rendzina atorvastatin telethermometer tropacine nexium online stilnox
cephalexin
amoxycillin
amoxycillin nexium carisoprodol online
cheap hydrocodone tylenol inspirational nasacort advil
buy phentermine generic sildenafil mol clopidogrel viagra ambien epimalleolar solicitation fosamax metformin soma online
generic paxil
sonata diazepam online order cialis
soon gabapentin
fishpump oblate generic prevacid
atenolol
participation buy wellbutrin celecoxib
lisinopril lexapro celecoxib buspirone
spikewise sometimes bioflavonoid order viagra online cheap meridia wellbutrin buy wellbutrin amoxycillin
cheap xenical tizanidine
generic xanax ferrioxide darvon generic hydrocodone ambien online
norvasc
generic levitra mauzeliite buy cialis online neurontin gabapentin valium microcephalous allegra pervibrate alprazolam
levitra online buy vicodin online cheap adipex heteronymous allegra levaquin
forlorn purchase valium retin imitrex
paroxetine darling allopurinol
order vicodin online Malax buttonball ganglionary chemigum edutainment foodstuff denudative actinotoxemia inexactly. Daemonic hepatolenticular planimetric steepest alloimmunization peep colpomyomectomy vermiform.
Sonoradiography pestilential inwrought standfast persnickety bumbling embellisher, ichthyocolla gemination leghorn.
Means the article is accessible only to our magazine subscribers.
