FutureWorks An Economic Development Strategy and Action Plan for Northwest Pennsylvania

FutureWorks Problem Statement Relative to other parts of the US, Northwest Pennsylvania is losing wealth, good jobs and talented people. The prospects for some of the important wealth producing sectors of the economy do not look good. If things don’t turn around, the gradual economic decline of recent years decline could well accelerate over the rest of this decade.

FutureWorks Goal Statement Our goal is to build wealth in Northwest Pennsylvania by retaining, attracting, and creating high-value jobs and people in the region.

FutureWorks Guiding Strategies 1. Develop effective institutions for regional leadership and coordination. 2. Diversify the economic base by Recruiting new job creating investment and talent to the region, and Strengthening support for entrepreneurs. 3. Accelerate the technological advancement and marketing capability of the existing, high value-adding manufacturing base.

FutureWorks Guiding Strategies (cont’d) 4. Build world-class education and training system for current and new workers. 5. Leverage the region’s recreation advantages for high value-added tourism. 6. Improve regional infrastructure for a 21st century economy

FutureWorks Five Major Initiatives Branding, Marketing, and Business Recruitment Improving the Global Competitiveness of the Region’s Manufacturing Base Creating a New College: An Accredited, Multi-County Technical College Establishing a Regional Authority for Infrastructure and Telecommunication Finance Mobilizing a Regional Seed Capital Fund for Entrepreneurial Development

FutureWorks Regional Initiative for Branding, Marketing, and Business Recruitment Objective: target and attract new investors, entrepreneurs, and talented people into the region International campaign of advertising and representation should be directed the Local Economic Developers’ Network with one strategy, one message, one budget. Establish a clear and compelling “brand” that everyone agrees to sell and that is based on existing economic strengths (one of the world’s best clusters of machining expertise, transportation/location advantages, low cost of living, affordable housing, great recreational opportunity, etc.)

FutureWorks Regional Initiative To Improve the Global Competitiveness of the Region’s Manufacturing Base Re-double efforts to retain and strengthen existing base of manufacturers, especially the small precision machining firms. IRC would lead this effort with expanded resources. Finding new market opportunities will require a formal, global marketing initiative. As existing manufacturing base seeks new global market opportunities,need help to combine and recombine technical and market capabilities through inter-firm networking. Will underscore the need for more sophisticated technical capabilities, especially e-commerce.

FutureWorks The New College: An Accredited, Multi-County Technical College A multi-county public institution providing sub-baccalaureate academic degrees and certificates and industry-recognized credentials, carefully articulated to four year institutions. Might be organized and funded under the PA Community College Act of 1963 (although new charter might be feasible), but in any case should be aimed at 21st century needs. Would have a high profile for working adults and college-age youngsters throughout the region, be tightly linked to employers, and be seen as a cornerstone of the region’s economic recovery. Would employ both direct and adjunct faculty in a flexible, multi- campus approach, sometimes contracting with existing higher ed institutions and other 2-year colleges through the state’s Virtual Community College, but with its own brand.

FutureWorks Regional Authority for Infrastructure and Telecommunication Finance Needs to be a middle ground between distant and often unwieldy state authorities and small, sometimes inefficient local governments for infrastructure projects finance (and conceivably administration). Could serve as a regional bond bank. Might finance (and even operate) regional telecommunication networks (providing cable TV, internet access and telephone services). Could have public and private investors.

FutureWorks Regional Seed Capital Fund for Entrepreneurial Development An early stage investment fund for new business ideas, targeted toward new growth sectors. Financed with start-up money from the Partnership and offering limited partnership investment opportunities to private sector individuals and institutions Double bottom line: financial return and “social return” (new jobs and new businesses in the region) Professionally managed under contract with private firm having appropriate incentives for performance.

FutureWorks Other Initiatives: Develop a regional resources and capabilities inventory Strengthen the local economic developers network Create a regional economic intelligence unit Establish a regional leadership academy Create a regional higher education alliance Get to work on clarifying the mission of all economic development related organizations in the region.

FutureWorks Regional Economic Development Coordination Alternatives Alternative One: Create a new entity as a partnership among the governing boards of major existing organizations/networks (with a few more “outside directors”). –As a permanent organization –As a temporary, transitional organization (sunset) Alternative Two: Elevate one of the existing organizations to a pre-eminent status. Alternative Three: Merge all (or most) of the existing multi-county organizations into a single new unit.

FutureWorks The Fund for the Future This Fund would be created to finance the new initiatives of this Action Plan. Supplement rather than replace current support for various on-going activities. Created and endowed by private and public sector partners. The umbrella coordinating entity would allocate the resources to the various initiatives and would establish accountability standards and measures but would not run the programs.

FutureWorks The Fund for the Future (continued) Existing groups might make an initial contribution from any operating reserves. All counties and municipalities in the region might be asked to assess a new 5-year levy to help capitalize the Fund. Private sector firms might be asked to contribute $X million over a five year period. The state and federal government might be asked to make major contributions to the discreet programs of the Fund.