ERIE 2014
2K | Erie Times-News | GoErie.com | Sunday, February 16, 2014
see how we grow
the region’s economy is branching out and weathering the rough times. Will our efforts ultimately pay off?
Who we are
The typical city of Erie citizen ... ... is 33.6 years old Age: 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80+
By JIM MARTIN jim.martin@timesnews.com History has a way of showing us what wasn’t apparent at the time. The passing of years can highlight turning points, telling us, for instance, that the Battle of Lake Erie would be the pivot point in the War of 1812, or that Erie’s manufacturing sector would peak in the early 1970s and decline in breathtaking fashion in the 1980s. Today, the perspective of years demonstrates the significance of patent attorney Hugh Lord’s decision to start building his own inventions. But what, we wonder, will history one day tell us about February 2014, the year just behind us and the months ahead? Will we mark it as the beginning of something new, or will we look back one day and see that we were laying the cornerstone of some lasting change? Time will tell. For now, this much is sure: We’re not sitting still. As you read this annual section, we invite you to consider what’s important, and just what history we might be making.
... has a high school degree or higher No degree High school Some college Bachelor’s Post-grad
13% 41% 26% 14% 6%
... is female
51%
49%
... is white Other:6% Hispanic: 6% Black: 16% White: 71%
Does not add up to 100 percent due to rounding.
SOURCE: U.S. Census Bureau ERIE TIMES-NEWS
Thousands of Erie-area residents face uncertainties of their own in the year ahead as Highmark customers face the possibility that they won’t have access to UPMC Hamot, the area’s largest health-care provider.
Downsizing at GE Few stories of the past year have invited more speculation than the announcement in April that GE Transportation planned to eliminate 1,050 jobs in Erie. Part of the message was one the people of Erie had heard before: The famously up-anddown locomotive market was in a down cycle. Too many people for too little work. But there was something new in this missive from headquarters, located now in Chicago. Company officials raised concerns about productivity at the Erie plant. And instead of just laying off Erie workers, they announcedplanstoshiftproduction of AC locomotives to Fort Worth, Texas, Mexico and elsewhere. This wasn’t just more of the same for workers who had lived throughlayoffsbefore.Thiswasa structural change that has raised questions about the future of GE Transportation in Erie. There are reassurances coming from the company. They come in the words of Russell Stokes, the company’s new chief executive. And they take the form of massive investments in the Erie campus, including the gleaming new Customer Innovation Center, where visitors have come from around the world. The gravity of the GE cutbacks is not lost on Barbara Chaffee, president of the Erie Regional Chamber and Growth Partnership. “There is no sugarcoating the decision,” she said. But she’s hoping there’s a lesson to be learned about the need
14% 13% 17% 14% 11% 13% 8% 5% 5%
Seeds of success
JACK HANRAHAN/Erie Times-News
Donjon Shipbuilding & Repair is bustling with winter work. The shipyard’s success points to the region’s attempts at diversification, as it shares space on the bayfront with developments geared toward tourism. to compete. “I think every day is a challenge based on the fact that all competition is global now,” she said.
Erie on display The layoffs at GE Transportation might have cast a shadow over 2013, but Erie still found time to celebrate. History, the city and its bayfront were all on display for Tall Ships Erie, which drew an estimated 80,000 people. And that wasn’t the only game in town. Roar on the Shore once again brought the throaty growl of motorcycles to Erie to take part in what’s become one of the nation’s largest bike events. It was a year of big crowds and big moments as Elton John and other major acts took the stage and filled seats at Erie’s newly named and renovated Erie Insurance Arena. Erie has long counted on big crowds at Presque Isle State
About this speciAl report
Erie Women’s Health Partners
Erie 2014 is the Erie Times-News’ 15th annual report on Erie’s economy. It was edited by Doug oathout, managing editor/news. The lead writer was Jim Martin, Reporters David bruce, erica erwin, Kevin Flowers, John Guerriero, ron leonardi, sean Mccracken, Valerie Myers, ed palattella and Gerry Weiss assisted. Graphic artist chris sigmund and the photo staff — supervisor christopher Millette, plus Jarid A. barringer, Andy colwell, Jack hanrahan and Greg Wohlford — provided visuals. sherry rieder, managing editor/production, supervised production. It was designed by copy editor Kristin bowers.
Francis H. Tseng, MD Carla Picardo, MD Peggy Boyd, CNM Stefanie Young, CNM Gretchen McCool, CNM Sarah Henry-Walker, CRNP Lisa Quinn, CRNP Juliette Mannino, CRNP Heather Adams, PA-C Rebekah Nottingham, CRNP
Erie’s bayfront was photographed by Jack Hanrahan.
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and to begin promoting Erie in places like Pittsburgh, Cleveland, Buffalo and Ontario. “We want to take our circle, our reach, and make it broader,” Oliver said.
Eds and meds face change The past year brought new uncertainty for an increasingly important employment sector that includes the unlikely combination of medicine and education. After years of steady growth, enrollment growth at area colleges has slowed in recent years. What’s not yet apparent is if the trend is a passing one, a leftover of the recession, or a more permanent change that could reduce the schools’ economic impact. At the same time, the region’s health-care providers face a period of uncertainty as the nation moves ahead with the implementation of the Affordable Care Act.
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Park — nearly 3.8 million visited in 2013 — to help draw visitors to the region’s hotels, restaurants and shopping centers. Growth in tourism spending has been dramatic in recent years, thanks in part to the marketing efforts of attractions such as Waldameer Park & Water World and Splash Lagoon Indoor Water Park Resort In fact, visitors to Erie County spent more than $1 billion in 2012, more than double the $463 million they spent in 2001, according to figures from the Pennsylvania Department of Community and Economic Development. John Oliver, president of VisitErie, Erie County’s tourism promotion agency, is hoping that’s just the beginning, thanks to a vastly expanded advertising budget funded by an increase in the Erie County hotel tax. The higher tax has allowed VisitErie to raise its advertising budget from $60,000 to $800,000
The arrival, more than a century ago, of GE Transportation, is testament to the ability of an outside force to transform the local economy. But the story of Erie’s economy contains many accounts of companies born at a kitchen table or in a backyard garage that grew into important parts of the local economy. It is the story of American SterilizerCo.,HammermillPaperCo., Lord Corp. and dozens of smaller companies. It is the story of Erie Insurance, a homegrown company that is investing millions to revitalize its neighborhood. But Jim Kurre, professor of economics at Penn State Behrend and director of the Economic Research Institute of Erie, worries that Erie might not be sowing the seeds for future success. His worry is rooted in statistics that show the amount of income Erie derives from sole proprietorships — owner-run businesses — is just half the national average. It’s a trend, if not corrected, that could spell trouble, he said. “The economy is kind of like a forest,” he said. “Some trees are going to be dying, and you need new ones coming in to replace them.”
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