Penn-Northwest CEO Reports Progress, Potential
HERMITAGE, Pa. – Completing his first year, the new president and CEO of Penn-Northwest Development Corp. Monday presented his officers and directors with an optimistic picture of economic development in Mercer County, both achievements this past year and the potential for even greater gains next year.
Whether measured by capital investment in private companies, attracting companies to locate in Mercer County, jobs retained or jobs created, Randy Seitz showed how Penn-Northwest is meeting or exceeding the goals set a year ago.
Nearly $63 million in capital investment has gone into local industry projects with a potential for $124.44 million, he said. Of the goal of 200 jobs created by next June 30, 115 has been recorded; the potential is 344. And of the goal of 588 retained jobs, Penn-Northwest has achieved 529.
“Throughout 2012, Penn-Northwest produced a "Program of Work" designed to reach short-term goals while taking significant steps toward multi-year goals,” Seitz said.
The “Program of Work,” he explained, is a compilation of activities that take “a more aggressive focus” on entrepreneurial efforts and that seeks to have the organization “become the go-to agency for Marcellus/Utica shale information in Mercer County.”
To applause in the ballroom of the Avalon Golf & County Club here, Seitz showed five clips, part of the nascent marketing campaign, “Make it in! Mercer County, Pennsylvania,” to tell why Mercer County is an ideal place to start, expand or relocate a business and raise a family.
The campaign is the work of Bensur Creative Marketing Group, Erie, Pa.
In addition, the finances of Penn-Northwest are in good shape, reported John Stillwaggon, a certified public accountant with Stillwaggon & McGill CPAs. The organization has $1.66 million available to lend companies that quality and the auditor issued a clean bill of health.
As he began his duties at Penn-Northwest, Seitz said, he saw that Mercer County faces three challenges: a shrinking population, an unemployment rate above the state and national averages and a population whose average attained education level, basically a high school diploma, falls below the state and nation.
“Once they graduate [from college], kids are getting jobs outside the county,” he noted.
In Mercer County’s favor, however, is its location (“absolutely fantastic”), cost of living ("much lower than the competition”) and low cost of land available for industrial development (“We fare extremely well”).
The county has 150 sites for industrial development, Seitz continued, “and a great workforce.” Turning to his theme, the CEO said, “Mercer County is a low-cost alternative for industrial expansion.” A challenge before him, the directors and officers is “how to get that message out to the clusters of industry” Penn-Northwest wants to attract.
Measurable progress that Penn-Northwest achieved in 2012, Seitz reported:
- The development of 120 new leads and conducting 13 tours at nine sites with a small number of site selection firms. This resulted in $5 million in actual investment, Seitz said, noting the potential is $1.2 billion. Companies who came are Kohl’s, which will build at the intersection of state Route 18 and U.S. 62 -- $3.68 million in initial infrastructure and 85 construction jobs; Astralloy at the Penn-Ohio industrial complex, $1.2 million in investment and 30 full-time jobs created; and a Walmart distribution center in Wheatland, $187,000 invested and four full-time jobs created.
- 119 jobs created with a goal of reaching 500 by the end of June. Long-term potential, 5,279.
“Projects on the horizon for 2013” -- total potential investment, $808 million, he said:
- An Italian firm is interested in building a paper-pulp mill in Greenville-Reynolds East Industrial Park. Potential full-time jobs, 750.
- A shale service company “has focused on Mercer County” and is interested in locating in or near the Interstate 79 Flexospan building and Hovis plant, in Stateline Industrial Park and a 17-acre tract in the Shenango Valley. Potential full-time jobs, 30.
- A tire producer is interested in locating in the Greenville-Reynolds park, Winner/Westinghouse complex or Greenville-Trinity South plant. Potential full-time jobs, 1,500.
- An unidentified sports retailer is interested in space near the Grove City Airport. Potential full-time jobs, 20.
Copyright 2012 The Business Journal, Youngstown, Ohio.
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