Economy of Erie, Pennsylvania
Erie, Pennsylvania is the Commonwealth's primary access point to Lake Erie, the Great Lakes, and the Saint Lawrence Seaway. The city developed first as a maritime center after the American Revolution, as a railroad hub during the great American westward expansion, and as an important manufacturing center during the Industrial Revolution. By the 21st century, electric locomotive building is all that remains of big industry, but smaller-scale steel and plastics manufacturers, as well as health care, insurance, tourism and recreation have emerged as Erie's new diverse mix of key industries.
Employment
Unemployment statistics
As of March 2007, Erie's unemployment rate was 4.1%, more than a point's improvement over the 5.2% rate a year earlier. It was the sixth consecutive month that the rate improved over its corresponding year-ago figure. The national unemployment rate is 4.4%. Spring construction jobs offset manufacturing losses due to recent layoffs. [1]
Top industries and employers
As of June 2005, Erie's top-ten employers by size of work force are the government (6,435 persons, or 30%), manufacturers (5,200 persons, or 24%), medical services (4,774 persons, or 22%), and other (insurance, retail, and public utilities) (4,950 persons, or 23%). This diversity is less apparent among firms with fewer employees, however. For example, manufacturing is a significant 39% of the local economy among firms with 200 to 500 employees (18 of 46 firms). [2]
Erie is the corporate headquarters of GE Transportation Systems, Plastek Industries, and Erie Insurance Group. GE Transportation is a world leader in railroad, marine, mining, and energy industries. [3] General Electric chose Erie as the setting for its "Take My Breath Away" advertising campaign. The Plastek Group is a major manufacturer of plastic packaging materials for consumer goods, cosmetics and pharmaceuticals, as well as connectors for cars, circuit cards, card holders, and other plastic products. [4] Erie Insurance Group handles a wide range of insurance products, including life, health, automobile, and homeowners. [5]
Manufacturing and technology industries
Heavy industry is on the decline in Erie. However, smaller, high-precision companies are growing in size and scope. For example, Lord Corporation, which specializes in shock- and vibration-damping products for the aerospace industry, was founded in and has major operations in Erie. [6]
The plastics industry is a vital part of Erie's economy. Over 10% of the nation's plastics are manufactured or finished in Erie-based plastics plants. [7] These plants are supported by many locally-owned CNC machine tool job shops.
Erie is an emerging center for biofuels and environmental research. Erie Biofuels, located on the former Hammermill Paper plant, will begin producing biodiesel in fall 2007, with an expected production volume of 45 million gallons of biofuel per year. [8]
Tourism and entertainment industries
Tourism plays an increasingly important role in the local economy as tourism numbers continue to increase. The four million annual visitors to Presque Isle State Park also frequent downtown Erie and regional attractions.
In February 2007, the Presque Isle Downs racino opened for business in Summit Township, creating more jobs and drawing tourists into the area.
As of May 2007, five new hotels are under construction in downtown Erie, Summit Township and Millcreek Township. [9]
Economic development
Erie is taking advantage of selected Commonwealth programs to encourage residents, universities, and businesses to cooperate in the economic development of the Erie community.
Local Economic Revitalization Tax Act (LERTA)
Mayor Rick Fillipi established an aggressive citywide real estate tax abatement program in November 2002, overhauling a more modest tax abatement program dating back to the 1970s that only applied to low- and moderate-income neighborhoods. The Local Economic Revitalization Tax Act (LERTA) plan allows a 100% ten-year tax exemption for the costs of new construction or improvements to property. The program is expected to cost the city $7.8 million in property tax revenue between 2005 and 2016. The program in its current form expires on 13 November 2007. The City Council, the Erie School Board, and the Erie County Council must approve any new program. Mayor Sinnot proposes to narrow the focus of the LERTA program to target development of blighted neighborhoods. Sinnot seeks to reduce costs in order to improve the city's real estate tax revenues, which have been flat as a result of the Fillipi model. A representative of the Erie Development Authority suggests that this will be "one of the most important redevelopment decisions the community is going to make in the next several years." [10][11]
Keystone Innovation Zone (Erie KIZ)
The Technology Council of Northwest Pennsylvania (TCNWP) is the regional coordinator (see roster of programs and coordinators) of Erie KIZ [(see program details), one of a number of programs of the Pennsylvania Department of Community and Economic Development (DCED) (see DCED Program Finder). KIZ aims to bring businesses and universities together to promote technological innovations and therefore regional economic development at the nexus of education and commerce.
References
- ^ YourErie.com. "Erie Unemployment Falls". Retrieved 2007-05-21.
- ^ Erie Regional Chamber and Growth Partnership. "Major Employee Groups". Retrieved 2007-05-21.
- ^ "GE Transportation". Retrieved 2007-05-25.
- ^ "The Plastek Group". Retrieved 2007-05-25.
- ^ "Erie Insurance Group". Retrieved 2007-05-25.
- ^ McNeel, Rick. "LORD Corporation History". Retrieved 2007-05-25.
- ^ Erie Chamber of Commerce. "Fact Sheet". Retrieved 2007-05-21.
- ^ "Lake Erie Biofuels". Retrieved 2007-05-21.
- ^ Guerriero, John, Another hotel planned for mall, Erie Times-News, 4 May 2007, pp 1A, 4A
- ^ Palatiella, Ed, Revised LERTA plan: Shorten program, target blighted areas, Erie Times-News, 6 May 2007, pp 1A, 8A
- ^ YourErie.com. "Mayor Announces Lerta Plan". Retrieved 2007-05-21.