FEATURE
A year in review: Business trends of 2019
fundamentally see the world differently “Of course, fundamental change to the way business is done takes time, and it may take years for us to see real improvement to the way government operates,” said Ooms. HR advancements Several trends surfaced during 2019 indicating that the business world is changing its human resource practices, according to Lucyann Vierling, executive director with the Wayne Pike Workforce Alliance. Leading the way are rising compensation packages that increasingly offer, in addition to wage adjustment, career expanding options Vierling such as training and tuition reimbursement. “Our businesses, as a whole, are increasingly recognizing the costs of turnover and financial losses from a lack of employee skills,” said Vierling. “Applicants who can learn are in great demand.” Vierling has also noticed that business is accepting the value of professional coaches for human development. She declared that professional coaching is a different process from case management. Comprehensive economic plans being used in the region during 2019 also helped created pockets of excellence in areas such as transportation, infrastructure, workforce education and community development. According to Vierling, this marks a departure from the past where development was less organized. “There also has been an increased understanding that you can’t just have work to succeed,” said Vierling. “You need a broader context that produces a superior quality of life so that people can truly thrive.” lysts for downtown renewal. Mixed signals According to Ooms, her organization is also finding Calendar year featured solid investment, but that major foundations such as Scranton, Weinberg also unsettling signals for and Moses Taylor are now banding together in a business, according to cohesive regional fashion to address problems. Larry Newman, executive “The applicants for grants are also showing director of the Diamond collaboration, and this helps to reduce duplication City Partnership. These of efforts,” said Ooms. metrics have indicated the As she eyes the new female leadership within presence of decreased corruption-scarred Scranton resulting from the No- unemployment coupled vember election, Ooms is optimistic. She believes with workforce shortages, Newman this could be a turning point with new blood who the existence of people
by Dave Gardner
Changes within employment, leadership, ongoing investment and market demands marked the evolving trends that confronted the regional business arena during 2019. Several metrics from the 2019 edition of the Indicators Report for Lackawanna and Luzerne counties, created by The Institute for Public Policy & Economic Development, paint a picture of a region departing its last connections to the dusty coal mining past. The unemployment rate, long a source of regional frustration, has dropped at least four points since 2012 with approximately 13,000 business units now operating regionally. According to the report, regional GDP exceeds $23 billion, and is witnessing a 2.2% annual growth. This rate stand in contrast with the statewide GDP expansion total that was listed as exceeding 4%. The median price for real estate rose to $135,500, fueling a market that has rebounded since the dark days of the Great Recession. Additionally, one in five regional residents were age 65 or older, requiring a bustling health care arena. Vibrant downtowns According to Teri Ooms, Institute executive director, downtown resurgence continued as a major trend during 2019. These areas are relatively safe, and now include a vibrant mix of students, millennials, and older residents who have relocated to downtown apartments for convenience or may reside there during the weekdays. She credits programs such as Wilkes-Barre Connect and the establishment of business incubators, plus development accomplishments such as the Marketplace at Ooms Steamtown, as being cata-
8 NORTHEAS T P ENNS YLVANIA BUS INES S J OURNAL TS_CNG/NPBJ/PAGES [B08] | 12/03/19
18:18 | FARRELLSHE
DECEMBER 2019
choosing not to work or unable to do so, and pressure on employers to increase wages for a long overdue compensation correction. “The metrics seems to indicate many economic indicators are not moving in tandem, said Newman. “We also are no longer isolated within NEPA from global economic conditions.” Investment continued at a solid pace within downtown Wilkes-Barre, and Newman said this indicates confidence in the city’s economic fundamentals. The downtown now has its first private business accelerator, business startups continue, angel and venture capital is flowing, and visual evidence continues to prove a vibrant downtown with intellectual capital has been established. Demand for downtown residency is also expanding. Waiting lists for precious downtown apartments may extend years into the future. “Another positive sign we’re witnessing is that many employers are beginning to realize that the millennials as employees are the norm, and their generational behaviors must be accepted,” said Newman. “This is particularly true in the startup companies.” He added that the valley’s colleges, which can serve as a key resource for business startups, remained anchored during 2019. Investment and expansion within these schools continued, as witnessed by the new King’s College engineering center that has attracted both students and economic activity. Demand-oriented Consumer demand, as opposed to product supply, directed business activity at an ac-
celerating rate during 2019, according to John Mellon, Ed.D., associate professor of business at Misericordia University. He described how the expanding number of restaurants in the region, including national franchises, has been made possible by a strong regional appetite to dine outside of the home. Educational opportuniMellon ties for employees by business management is also increasing, as employers across the spectrum of commerce look beyond current employee skills and strive to help them grow professionally and with life skills. This development demand is creating new markets for the educational community, including traditional classroom and seminar formats. “We’re even teaching some management education,” said Mellon. “Lifelong learning is now vital, and there’s a Connecticut model with less emphasis on degrees and more on certificates and direct skill training as technologies such as robotics advance in use.” Mellon also was pleased that, during 2019, identification was achieved of the need for increased public transportation, particularly during “off” hours so that workers on night shifts can get to and from work. The regional need for public transportation for the elderly also is high, making public transit more important than ever and a vital part of economic development.