Northeast Pennsylvania Business Journal - March 2018

Business Journal NORTHEAST

$1.50

PENNSYLVANIA

THE REGION’S AWARD-WINNING SOURCE OF BUSINESS NEWS AND INFORMATION

March 2018 VOL. 33 NO. 3

Economic Winners and Losers

coping with a bonanza of activity. Needs for trained caregivers continue to rise, creating endless employas 2018 unfolds and the effects of the Great reces- ment opportunities as well as growing economic ties sion become hard-learned lessons, an examination of with formalized education. NEPa’s economic sectors presents surprising diversity, Barr added that NEPa can expect to see its vast as well as a few big guns. retail arena suffer as e-commerce increases and the Gene Barr, president and cEO of the Pennsylvania effects of the buying appetites within the millennial chamber of Business and Industry, noted that warehousing generation intensify. and logistics is one area of commerce that has achieved “The millennials prefer to purchase experiences as phenomenal success within NEPa. This is fundamentally opposed to goods, and retail therefore must adapt to tied to the region’s strategic location on the east coast, become a destination experience,” said Barr. “These coupled to the availability of effective highway systems. changes in retail are creating many systemic implicaThe natural gas industry recovering methane from tions, such as within the commercial real estate business the Marcellus Shale has also achieved great success, where demand for big-box retail space has decreased.” despite the threat of increased product taxation. Gas well output has been prolific, while the shale’s supply of Technical diversity “wet gasses” that include propane and ethane represent a technical diversity among businesses that helped another gold mine of opportunity for the heating, rubprotect the region from many of the crippling effects of ber and plastics industry. the Great recession still exists within NEPa, accord“This overall development effort within the Marcel- ing to Ken O’Krepkie, regional manager with the Ben lus region has been inhibited by permitting problems Franklin Technology Partners. The duo of “Eds and and the need to construct a better pipeline infrastrucMeds” are still the region’s kings, and O’Krepkie pointed ture,” said Barr. “But, things are moving in the right to strong employment within these sectors as one of direction, and the economic development associated the region’s greatest achievements. with the gas will only increase.” “IT software development is also strong here, parBarr was firm that President Trump’s campaign ticularly among early-stage companies,” said O’Krepkie. promise to revive the coal industry is unattainable he acknowledged that old non-skilled manufacturbecause of environmental regulations as well as chang- ing has largely vanished, but modern technological ing market pressures. companies that transition to manufacturing has achieved many success stories natural gas from coal for heat and energy production throughout the region. These companies prosper by find themselves with a cheap, clean and instant energy being competitive and efficient and looking forward source, thereby guaranteeing they will never return to instead of trying to recreate a lost past. coal and its practical disabilities such as ash disposal. “Modern manufacturing must be knowledge and technolIn view of the reality that NEPa’s population is ogy based, plus be constantly evolving,” said O’Krepkie. “In relatively aged, the region’s health care industry is See WINNERS & LOSERS on page 4 by Dave Gardner