Oh-Penn Interstate Region Economic Development Guide 2013 by Journal Communications

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Interstate Region Economic Development

Marcellus, Utica shale development fuels record oil, gas growth Easy access to regional, international markets draw logistics firms to the area

Built to Last

Region retools workforce for the future Sponsored by the Oh-Penn Interstate Region | 2013-14

Ocean Vessel on the Ohio River!

Photo credit: Paul Giannamore, Herald Star

The ocean vessel Delta Mariner recently called at the Columbiana County Port Authority’s Wellsville Intermodal Facility to load NASA rocket parts bound for the Kennedy Space Center. Even if your business isn’t rocket science, we can provide low cost, all water transport to international destinations via the Gulf of Mexico.

Tracy V. Drake, CEO 1250 St. George St. • East Liverpool, OH 43920 • (330) 386-9051 • Fax: (330) 386-1122 Email: ccpa@ccpa-ohioriver.com • www.ccpa-ohioriver.com

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Bridging Entrepreneurship & Innovation in the City of Hermitage

(724) 981-0800 • www.hermitage.net LindenPointe is located on Route 18, north of I-80’s 376 interchange, with easy access to Pennsylvania and Ohio turnpikes.

 LindenPointe Lots Available For Development Training & Workforce Development Center Available For Use – (724) 981-1829

There’s no other business park like LindenPointe LindenPointe is a planned technical park and an exciting development providing unrivalled regional location opportunities. It is a strategic economic development initiative built through a unique publicprivate community partnership. The “campus like” environment differentiates LindenPointe from other real estate developments. 115 acres are fully improved with street lighting, entry signage, landscaping, buried utilities, high-speed telecommunications and cable at the lot line.

www.eCenterLindenPointe.com “Hermitage, Pennsylvania, may not strike you as a hotbed of technological advancement, but it sure is. That’s true in large part thanks to the eCenter@LindenPointe, a STEM (Science, Technology, Engineering and Mathematics) incubator committed to promoting innovation and entrepreneurship … “ – Pittsburgh TEQ Magazine

LindenPointe Innovative Business Campus

Region Economic Development 2 || Oh-Penn Interstate www.lindenpointe.com

Our vision is to create “economic magic” through innovation and entrepreneurship in the Oh-Penn Interstate Region and beyond by providing support including office and lab space, education, training, coaching, and mentorship for entrepreneurs and students.

Contents

oh-penn

interstate region economic development

Transportation assets in the Oh-Penn Region include four major interstates, three airports, two Class II rail carriers and proximity to major deepwater ports – and its infrastructure network continues to evolve, providing even more access major markets.

Manufacturing

Where Innovation transportation Going Places Starts

Youngstown, Ohio, is home to the nation’s first National Additive Manufacturing Innovation Institute, which is advancing manufacturing processes and systems to make them cleaner, faster and more energy efficient.

2013-14 Edition | Volume 3

Education

Training Talent The Oh-Penn Region’s extensive network of colleges, universities, career and technical centers, and vocational schools provides workforce training and STEM education to help students score high-tech jobs.

42 Livability

Distinctive Destinations From live entertainment venues and sporting arenas to museums and shopping hot spots, quality-of-life attractions in the Oh-Penn Region keep residents and visitors coming back for more.

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Online

What’s on businessclimate.com/ohpenn Business Climate

Read more about the Oh-Penn Region’s competitive advantages and assets.

Trends Learn more about what’s shaping business in the region.

Cool Companies Meet more innovative, fast-growth businesses finding success in the area.

oh-penn 2013-14 edition volume 3

interstate region economic development Editor | Emily McMackin Contributing writers | Nan Bauroth, Frederick Jerant, Kathryn Royster, Kelly Kagamas Tomkies, Jeff Walter, Gary Wollenhaupt Content Coordinator | Jessica Walker Boehm Staff Writer | Kevin Litwin Proofreading Manager | Raven Petty lead designer | Kacey Passmore Senior Graphic Designers | Stacey Allis, Laura Gallagher, Kris Sexton, Jake Shores, Vikki Williams Graphic Designer | matt west Creative Technology Analyst | Becca Ary lead photographer | Jeff Adkins Senior Photographer | Brian McCord Staff Photographers | Michael Conti, wendy jo o’barr, frank Ordonez, michael tedesco color imaging technician | alison hunter Integrated Media Manager | Steve Murillo Sales Support Project manager | Sara Quint Sales Support Coordinator | Christina Morgan Sales graphic designer | rachel Lorance Ad Production Manager | Katie Middendorf Ad Traffic Assistants | Krystin Lemmon, Patricia Moisan Web project manager | David DAy Web Developer I | Nels noseworthy Web Designer II | richard stevens Web Product Manager | John Hood Digital Project Manager | Jill Ridenour Digital Products designer | Erica lampley

Twitter

Demographics

Top Industries

Keep updated and informed on the latest real-time news, developments and information.

Drill down on the numbers behind the region’s powerhouse economy with a full set of statistics and data.

Learn more about the key industry sectors and top companies that make the region work.

Oh-Penn Interstate Region Economic Development Guide is published annually by Journal Communications Inc. and is distributed through West Central Job Partnership. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by email at info@jnlcom.com.

Photo Gallery & Videos See unique faces, spaces and places presented in a whole new way courtesy of our team of award-winning photographers.

For more information, contact: West Central Job Partnership 44 S. Beaver St. New Castle, PA 16101 Phone: (724) 658-2501 www.wcjp.org Visit Oh-Penn Interstate Region Economic Development Guide online at businessclimate.com/ohpenn

Tablet Take the region with you with a digital edition optimized for tablet viewing.

4 || Oh-Penn Interstate Region Economic Development

©Copyright 2013 Journal Communications Inc., 725 Cool Springs Blvd., Ste. 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent. Member Member

The Association of Magazine Media Custom Content Council

Member West Central Job Partnership

Contents

on the cover The National Additive Manufacturing Innovation Institute in Youngstown uses high-tech additive manufacturing processes to produce metal turbines and other industrial pieces. Photo by Jeff Adkins

7 Overview

8 Discover

41 Economic Profile

Built to Last

Banking on Tradition

Raising the Bar

business climate

Oh-Penn’s five counties retool workforce for renewed production demand in manufacturing, energy

Logistics

The Right Connections Easy access to regional, international markets draw logistics firms to the Oh-Penn Interstate Region

Financial Services

Region’s deeply rooted financial services industry continues to grow

health care

Hospitals in the Oh-Penn Region boost technology, services and facilities

Energy

Power Play Rapid Marcellus and Utica shale development fuels record growth in region’s oil and gas industry

All or part of this magazine is printed with soy ink on recycled paper containing 10% post-consumer waste. Please recycle this magazine

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Looking for heLp to deveLop your Workforce? Let our staff of workforce development professionals assist you in recruiting, understanding and enhancing your workforce through the programs offered through the West Central Workforce Investment Board and the Pennsylvania CareerLinks® of Lawrence and Mercer counties.

free onLine Job Listings • Labor Market inforMation assessMents • QuaLified Job seekers recruiting • training services

Lawrence county

102 Margaret St. New Castle, PA 16101 44 S. Beaver St. 724-656-3165 tel New Castle, PA 16101 724-656-3232 fax 724-658-2501 tel 724-598-2075 tty 724-658-4252 fax Interstate Region Economic Development 6 || Oh-Penn www.jobgateway.pa.gov www.wcjp.org

mercer county

217 W. State St. Sharon, PA 16146 724-347-9257 tel 724-983-5701 fax 724-983-5822 tty www.jobgateway.pa.gov

Overview

Five Counties, One Vision Oh-Penn Region offers many advantages for business growth

he five-county Oh-Penn Region is a hub of commerce that built on its legacy industries to create vibrant new growth sectors. The region – Columbiana, Mahoning and Trumbull counties in Ohio and Lawrence and Mercer counties in Pennsylvania – offers numerous advantages that include lower land costs, a deep pool of highly skilled workers, affordable labor rates, ample buildings and sites, high-caliber higher education institutions and superior transportation assets. Building on its industrial heritage, Oh-Penn has formed a

robust advanced manufacturing cluster and emerging technology, life sciences and financial services. The region is poised to be the buckle of the Tech Belt that runs from Cleveland to Pittsburgh, an area that includes 7.2 million people and what in total is the fourth-largest industrial/ technology region nationally. With access to a network of interstate highways, proximity to major markets, and major rail and port capabilities, the Oh-Penn Region is a competitive center for logistics and distribution. A number of major retailers have distribution operations in

Greenville Cortland

422

MERCER MERCER Warren

TRUMBULL Niles

MER C E R Sharon Hermitage

Mercer 80

Grove City

Youngstown LAWRENC E

Canfield

224

New Castle

MAHONING Salem

Leetonia

COLUMBIANA

Canton 30

Libson

OHIO

Columbiana

Ellwood City Butler 376

PENNS YLVANI A

Pittsburgh

the region, and several logistics firms are based there. Columbiana County’s port system handles more than 15 million tons of cargo a year and is the largest on the Ohio River. The YoungstownWarren Regional Airport offers daily commercial service. The region lies in the heart of the Marcellus Shale Play, a huge natural gas deposit with a wellhead value of some $1 trillion. The formation is making the Oh-Penn Region a hub for production and distribution of natural gas drilling and delivery equipment. The region includes a burgeoning education and health care component. A centerpiece of higher education is the 13,500-student Youngstown State University, whose offerings include standout programs in engineering, business and computer information systems. A nucleus of top-level health care providers are investing heavily in the latest equipment, treatments, technology and facilities, and are among Oh-Penn’s major employers. Nestled between two major metro areas, the region provides access to big-city amenities and entertainment as well as homegrown cultural and fourseason recreation attractions. With its housing and overall living costs well below the national average, ease of getting around and a range of lifestyle choices from large cities to small towns, the Oh-Penn Region offers an inviting quality of life to match its advantages as a place to grow a business. businessclimate.com/ohpenn

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Discover the Oh-Penn Interstate Region cool companies

Innovation Central Innovation thrives in the Oh-Penn Region, where homegrown companies are developing and delivering some of the most cuttingedge technologies for applications ranging from alternative energy to aerospace. Norfolk Southernâ&#x20AC;&#x2122;s first all-electric locomotive will soon run on more than 1,000 advanced lead carbon, 12-volt batteries made by Axion Power International Inc. in New Castle, Pa. The company, which develops advanced batteries and energy storage systems, is working with the rail provider to design an energy-efficient system for over-the-road hybrid locomotives. Axionâ&#x20AC;&#x2122;s PowerCube technology is also being adapted for use in hybrid vehicles and office buildings and is part of a zero energy project at the federal Navy Yard in Washington, D.C. Other firms involved in groundbreaking research and development in the Oh-Penn Region include: Novocell Semiconductor: Develops intellectual property for the semiconductor industry, including some of the largest electronics and avionics firms, at its testing lab on the LindenPointe Innovative Business Campus in Hermitage, Pa. Fireline Inc.: Operates a 84,000-square-foot facility in Youngstown that makes industrial ceramics used in casting metal for aerospace turbine engines.

8 || Oh-Penn Interstate Region Economic Development

Axion Power International Inc. develops advanced batteries and energy storage systems in New Castle, Pa.

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Plant Home-Town Roots and Grow the Future in ellwood city JusT some oF ouR ameniTies: Full-service hospital, new state-of-the-art library, community plaza with performing arts stage, community theater, civic chorale, farmers market, annual arts festival, parks, trails, pool, golf courses and so much more!

LocaTion, LocaTion, LocaTion: •

40 minutes from Pittsburgh and Youngstown

•

20 minutes to Cranberry and New Castle

•

Adjacent to the Pennsylvania Turnpike and Route 376

•

15 minutes from I-79

Plant Your

RooTs

Contact the Ellwood City Area Chamber of Commerce at www.ellwoodchamber.org for information about our wonderful community or call us at 724-758-5501 to arrange a personal guided tour for your company or family.

ellwood city area chamber of commerce 314 Fifth St. • Ellwood City, PA 16117 • 724-758-5501 tel • 724-758-2143 fax Region Economic Development 10 || Oh-Penn Interstate www.ellwoodchamber.org

Member FDIC

by the numbers

Who’s Here

364,230

Getting the Goods

Number of jobs projected to be created by the oil and gas sector in Ohio and Pennsylvania by 2020

141,498 Number of direct and indirect jobs supported by the oil and gas industry in Ohio and Pennsylvania Source: U.S. Chamber of Commerce

One of the Oh-Penn Region’s biggest manufacturers is General Motors, which operates an assembly plant in Lordstown, Ohio, that has produced more than 14 million cars since opening in 1966. More than 4,500 employees work at the plant, building GM’s Chevy Cruze. Other leading advanced manufacturers in the region include: General Electric: Builds diesel locomotive engines and marine and stationary power applications in Grove City, Pa. American Standard Inc.: Makes plumbing products in Salem, Ohio. Werner Co.: Leading manufacturer of aluminum and fiberglass ladders and other climbing equipment; operates its corporate headquarters in Greenville, Pa. Delphi Packard Electric Systems: Makes automotive parts and accessories in Warren, Ohio, as a subsidiary of Delphi Automotive Systems.

Made Here

Breaking the Mold From the nation’s first fireworks to candy inventions, products made in the Oh-Penn Region are known for their originality. One of the earliest creators of the chocolate Peter Rabbit popular during Easter was Daffin’s Candies, which still conducts tours at its Sharon, Pa., factory and supplies hand-molded chocolates to specialty stores like Hallmark. Other brand-name products made in the region include: American Mug: Makes mugs for Starbucks in East Liverpool, Ohio, a town once known as the Pottery Capital of the World. Branded with the name Indivisible, the mugs are part of the coffee giant’s new Made in America merchandise, which benefits small businesses through Starbucks’ Create Jobs for USA Fund. Zambelli Fireworks: Provides pyrotechnic displays for more than 800 Fourth of July celebrations and worldwide extravaganzas, including events at the White House and Times Square. Founded in New Castle, Pa., in 1893 by Italian immigrant Antonio Zambelli. Pyrotecnico: One of the fastest-growing fireworks manufacturers, producing more than 2,000 pyrotechnic displays per year. Founded by Italian immigrant Constantino Vitale, who brought the business to New Castle in 1922. Emerging Industry

Stirring Up Success Ranked among the fastest-growing companies in the Pittsburgh area, New Castle, Pa.-based Keystone Compliance LLC conducts testing to help manufacturers meet regulatory compliance standards. Another up-and-coming testing lab in New Castle is ELS Laboratories. The firm, which conducts environmental testing for public and private agencies, is tapping into the region’s shale drilling boom by analyzing well drilling waste for oil and gas companies.

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business climate

Built to Last Oh-Penn Region’s five counties retool workforce for renewed production demand in manufacturing, energy

he Oh-Penn Region is flexing its manufacturing muscle again. The region’s five counties, long a stronghold for quality industrial production in the United States, are experiencing a resurgence of demand by advanced manufacturing and energy sectors. “This region is the fertile crescent of manufacturing,” says Sam Giannetti, executive director of workforce development for the West Central Job Partnership, one of the area’s leading workforce organizations. “This place helped build America in the previous two centuries, so it is only natural that as manufacturers repatriate, they come here.” According to Giannetti, two factors are spurring the area’s regeneration: A supply expansion as a result of the shale energy boom and the return of manufacturing to the U.S. “We are one of the leading areas in the emerging shale energy industry, and that is causing a

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renaissance in the proliferation of projects here, both in manufacturing and energy source development,” he says. “We’ve had manufacturing supply groups for the energy transmission side relocating and expanding.” Giannetti cites Ezeflow, a Canadian company that purchased New Castle, Pa.-based Flowline and invested more than $6 million there to produce pipe fittings supporting oil and gas production in the region. V&M Star, another example of the energy boom’s positive impact, recently invested $1 billion to open a rolling mill in Youngstown, Ohio, that will produce 500,000 tons of steel tubing a year and create 350 jobs.

GM, GE Invest in Plants Renewed manufacturing and remanufacturing demand is also driving job growth. General Motors is spending $220 million for tooling and equipment to build the next-generation Chevrolet Cruze at its Lordstown and Parma plants in Northeast Ohio,

retaining more than 5,000 jobs. In Grove City, Pa., GE Transportation recently spent $72 million to establish a new locomotive diesel remanufacturing plant, creating 150 new jobs. The area’s ability to reinvent itself stems from its proven logistical advantages. Centrally located between some of the heaviest populated areas on the East Coast, the area offers close access to major interstates, Great Lakes ports, regional airports and rail systems, making it a magnet for the logistics transportation industry.

“We now have an arsenal of 40 partners at our disposal,” says William Turner, workforce administrator. “We can put together a mix of services to assist businesses with whatever help they need in locating or expanding.” As evidence, Turner’s organization recently aided

To align itself with increased need for workers who possess advanced manufacturing expertise, agencies across the five counties have assembled the Oh-Penn Interstate Region Pathways to Competitiveness project, funded by a $6 million innovation grant from the U.S. Department of Labor. “We are working closely within the Oh-Penn Region to address the skills gap in manufacturing,” says Bert Cene, executive director of the Mahoning and Columbiana Training Association, an agency that provides job counseling and assessment, occupational classroom training and on-the-job training. “We’re matching the knowledge demand side of companies by coordinating with education providers to develop a curriculum to train workers in those fields,” he says. When V&M Star opened its new pipe facility in Youngstown, the Mahoning and Columbiana Training Association conducted all of the proctor testing and recruitment, helping deliver 300 qualified candidates. The Trumbull County, Ohio, Department of Job and Family Services is also working with local companies in five counties to establish job pathways by going into schools to promote careers in manufacturing. The agency is also involved in a collaborative Workforce Innovation Grant expanding a Business Resource Network.

jeff adkins

Collaborative Workforce Training

Ezeflow’s Flowline division in New Castle, Pa.

V&M Star and TMK IPSCO with recruitment and on-the-job training and is working with other manufacturers on testing and referrals. Oh-Penn’s workforce initiatives are a major reason companies increasingly see the region as a leader in reinventing its manufacturing heritage and successfully transitioning to the new economy. “We work with businesses to ensure that they have human resources prepared for the economy of the 21st century,” Giannetti says. Story by Nan Bauroth

Businesses Boost Investment in Oh-Penn Region

The roster of business investment throughout the Oh-Penn Region is on the uptick. Top investments over the past year include: V&M Star, $1 billion in a new rolling plant in Youngstown LS Power of New Jersey, $750 million for a natural gas fired power plant in Lawrence County, Pa., just across the Ohio line NiSource, $300 million to build a pipeline for the Utica shale play from Mahoning County to Mercer County, and to locate an oil and gas processing plant in eastern Mahoning County GM, $220 million to retool and equip two Chevrolet Cruze plants

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Top Manufacturers in the Oh-Penn Region General Motors Lordstown Complex

General Electric Transportation

Location:

2300 Hallock-Young Rd. Warren, OH 44481 Trumbull County

1503 W. Main St. Ext. Grove City, PA 16127 Mercer County

Employees:

= 100 employees

Products:

Chevrolet Cruze

Locomotive engines

Facts:

Lordstown is among the highest-volume single-line vehicle assembly facilities in the world with total production at more than 14.5 million vehicles since production started in 1966. Recent investments by GM include $351 million for Cruze readiness and $176 million for a new paint shop.

In late 2011, GE announced a series of investments totaling $72 million in Grove City, including $35 million to build capacity at a new diesel engine remanufacturing plant.

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Manufacturing Industry

Bridging the Skills Gap Manufacturers band together to fill workforce needs Perception is everything, which is why manufacturers in the Oh-Penn Region held a summit last year to brainstorm how to correct misconceptions among area youth about local manufacturing jobs. Members of the Mahoning Valley Manufacturers Coalition and Industry Partners of Lawrence and Mercer Counties are working to address labor skills shortages in the region and develop a plan to fill workforce education/training needs. At present, manufacturers in the region are projecting a 33 percent growth in their business over the next few years, and they will need skilled workers to keep progressing.

The first step begins with education, says Jessica Borza, sector partnership coordinator of the Mahoning Valley Manufacturers Coalition and Industry Partners of Lawrence and Mercer Counties for the Oh-Penn Manufacturing Collaborative. “We have developed materials and strategies to get the word out to students in schools and the community, with an emphasis on young people who have not yet made a decision about their career, as well as young working adults who have not found a career pathway or are transitioning into new careers,” Borza says.

The second part of the coalition’s strategy is to identify specific skills needed by area manufacturers by conducting a skill gap analysis. “This will give us more specific information from manufacturers about knowledge skills and abilities they need in candidates, and compare curricula available within our current education and training programs, as well as where new programs need to be created or realigned,” Borza says. “We encourage all manufacturers to get involved so their voice can be heard, because the more manufacturers, the more powerful the voice.” Story by Nan Bauroth

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logistics

The Right Connections Easy access to regional, international markets draw logistics firms to the Oh-Penn interstate Region

Trucks transport cargo between Ohio and Pennsylvania along Interstate 80.

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early 500 McDonalds and 70 Chipotle restaurants in four states receive everything from buns to napkins to straws from Anderson-Dubose trucks. The company relocated to Lordstown, Ohio, in 2012 to consolidate its real estate and move closer to the vital highway connections that make its business possible. From its new refrigerated warehouse, Anderson-Dubose delivers the equivalent of 550 million burgers and 36.5 million milkshakes a year, keeping restaurant owners and customers happy. “We selected our Lordstown site because of the proximity to the Ohio Turnpike and Interstate 76, which give us easy access to our service areas,” says Matt Liegl, an Anderson-Dubose spokesman. “It was a critical component of our site selection for our facility.”

attracted major distributors such as Macy’s, Sears, Toys ‘R Us, Things Remembered and FedEx. It’s the only major population market geographically centered in the middle of five of the nation’s six largest population markets. Advanced manufacturers have moved to the region, lured by the proximity to major markets. Based in Texas, Sabre Industries purchased an existing plant in Ellwood City, Pa., and began manufacturing components for electrical distribution infrastructure. The company supplies utility energy projects throughout the eastern United States. “They were attracted by easy access to the highways to the Northeast; it makes them much more competitive in a new market,” says Terri Stramba, director of the Ellwood City Chamber of Commerce.

Logistics Leaders

One of more than 250 FTZs in the United States, Foreign Trade Zone 181 is operated by the Northeast Ohio Trade & Economic Consortium. FTZs provide special customs procedures to U.S. manufacturers engaged in international trade activities. Duty-free treatment is given to items that are processed in FTZs and then re-exported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market.

Anderson-Dubose is just one of the many forward-thinking companies that have tapped into the highway, rail, water and air connections linking the Oh-Penn Interstate Region with major domestic and international markets. New York and Chicago are only an overnight drive away, and rail and air links provide connections to international markets and resources for top companies that have a presence in the region. In fact, the Oh-Penn Interstate Region name – the first official interstate region in the nation – reflects the importance of the highways that knit the two-state area together. Centered on the Pittsburgh/ Cleveland Industrial Corridor, the fourth-largest U.S. market by population, Oh-Penn has logistical advantages that have

A Diverse Network While easy access to I-76, I-376, I-79, I-80, the Ohio Turnpike and key state routes are well-known, it’s the diversity of transportation assets that makes the region stand out, says Rose Ann DeLeón, executive director of the Western Reserve Port Authority in Youngstown, Ohio. “We’re halfway between Lake Erie and the Ohio River, and if companies are looking to move things on water we have that capacity, and the rail infrastructure is here as well,” DeLeón says. Columbiana County’s port system and the nearby Port of Pittsburgh constitute the country’s second-largest maritime cargo centers. The region also offers proximity to Great Lakes deepwater ports — the closest one at the

FTZ Access

Sites include: Trumbull County, OH

Columbiana County, OH

Warren Commerce Park City: Warren Acreage: 50

Intermodal Industrial Park City: Wellsville Acreage: 66

Youngstown-Warren Regional Airport City: Vienna Acreage: 444

Leetonia Industrial Park City: Leetonia Acreage: 60

Mahoning County, OH

Port Terminal Facility City: East Liverpool Acreage: 19

Allied Industrial Park City: Youngstown Acreage: 200 businessclimate.com/ohpenn

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Port of Cleveland

Cleveland Cleveland Hopkins International Airport

Youngstown-Warren

ME RCER Regional Airport MERCER 80

Akron

Akron-Canton Airport

376

Wellsville Intermodal Facility

OH I O

CSX Rail Lines Norfolk Southern Rail Lines Interstates Rivers

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Pittsburgh Ohio River

L A KE E RI E

Pittsburgh International Airport

Port of Pittsburgh

P EN N SYLVAN I A

Port of Cleveland. Columbiana County, the northernmost point of the Ohio River, is the state’s largest river port system and serves as a feeder port for the industrial base of the Cleveland/Pittsburgh region. Its Wellsville Intermodal Facility provides a seamless transfer of cargo among rail, highway and water modes of transportation. The facility has a 60-ton overhead river crane for bulk cargo handling. Development continues just outside the region on the Erie, Pa., Inland Port project, capitalizing on the city’s location on the Great Lake of the same name. The port connects with the Great Lakes St. Lawrence Seaway system. Leaders in the region are also investing in rail infrastructure improvements to extend existing connections. Rail service is provided by Class I carriers CSX and Norfolk Southern as well as short-line services such as the Warren & Trumbull Railroad and Youngstown & Austintown Railroad that move bulk and intermodal cargo across the country. Air freight and passenger services are widely available from nearby airports in Akron, Cleveland and Pittsburgh. The Youngstown-Warren Regional Airport has Northeast Ohio’s longest runway at 9,025 feet, capable of handling large commercial aircraft. There is also abundant adjacent land for development at the airport, DeLeón notes. “There is a lot of opportunity at that airport, and we will see more businesses looking there in the future,” DeLeón says. Story by Gary Wollenhaupt Photography by Jeff Adkins

Learn more about the Oh-Penn Interstate Region’s logistics network and its connections to major markets at businessclimate.com/ohpenn.

Transportation

Going Places Oh-Penn Regionâ&#x20AC;&#x2122;s transportation network continues to evolve, boosting multimodal access for companies

The Oh-Penn highway system provides easy access to Interstates 76, 376, 79 and 80, as well as proximity to major cities.

The region has three international airports, including the Youngstown-Warren Regional Airport.

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The new Wellsville Intermodal Facility gives companies a direct connection to ports in the gulf of Mexico.

rom road and rail to air and port access, the Oh-Penn Region boasts a diverse transportation network for businesses looking to reach national and global markets. Drawing more than 500 trucking firms, Oh-Penn is known for its excellent highway system, which offers direct access to Interstates 76, 376, 79 and 80. Along with linking to Columbiana, Mahoning and Trumbull counties in Ohio, and Lawrence and Mercer counties in Pennsylvania, these roadways also provide proximity to Cleveland and Pittsburgh as well as overnight access to New York and Chicago. The regional highway system also continues to improve. A project to widen and reconstruct I-80 to six lanes from the Ohio Turnpike to State Route 46 was recently completed, and that section of I-80 now sees about 100,000 vehicles and 15,000 trucks per day.

Airport Passengers Rising For rail, the Oh-Penn Region is served by Class I providers CSX and Norfolk Southern, along with the Class II New Castle Industrial Railroad and shortline providers Warren & Trumbull Railroad and Youngstown & Austintown Railroad. The region also has three regional airports, including the Youngstown-Warren Regional Airport, which operates the longest runway in Northeast Ohio. “Our goal for the near future is to bring more passenger travel to our airport,” says Dan Dickten, director of aviation at Youngstown-Warren Regional Airport. “In fact, we started in February 2013 with casino junkets to Atlantic City. Our big target is to eventually schedule daily service to connecting airports such as Chicago, Detroit, New York, Orlando and Washington, D.C.”

The Wellsville Intermodal Facility, part of the Columbiana County Port Authority, has a 70-acre terminal that provides companies with cargo access to the Gulf of Mexico.

Wellsville Intermodal Facility Operator: Columbiana County Port Authority Size: 70 acres Location: On the Ohio River in East Liverpool Features: A 60-ton overhead river crane and bulk cargo handling system, and provides international cargo access to Gulf of Mexico ports, including New Orleans and Mobile, Ala.

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Youngstown-Warren Regional recently poured $4 million into upgrading its terminal building, plus added new parking lots and passenger boarding bridges. The airport has also secured a $780,000 grant for a revenue guarantee to draw a daily carrier. Dickten adds that natural gas drilling activities connected to the region’s Marcellus and Utica shale plays are causing more energy company executives to use Youngstown-Warren Regional. “Three years ago we had 27,000 passengers using our airport, and we expect about 80,000 passengers in 2013,” he says. “Our goal is to have an annual passenger base of 500,000, which means attracting one or more major carriers. Big things are ready to happen at Youngstown-Warren Regional Airport.”

staff photo

Port Access to the Gulf

Interstate 80, the second-longest interstate highway in the U.S., connects the Oh-Penn Region to major cities, including New York and Chicago.

The Oh-Penn Interstate Region also sits within proximity to the deepwater ports of Cleveland and Pittsburgh, while the local Columbiana County Port Authority offers barge access to the Ohio River. “Both Ohio and Pennsylvania are major maritime states, which

Road

Rail

Air

Ports

Four major interstates, including I-76, I-376, I-79 and I-80

Two Class I carriers: CSX and Norfolk Southern, the Class II New Castle Industrial Railroad, plus shortline providers Warren & Trumbull Railroad and Youngstown & Austintown Railroad

Three airports, including the Columbiana County Airport, the Grove City Airport and the Youngstown-Warren Regional Airport

Columbiana County Port Authority on the Ohio River, plus proximity to deepwater ports in Cleveland and Pittsburgh

22 || Oh-Penn Interstate Region Economic Development

most people in the nation don’t realize,” says Tracy Drake, Columbiana County Port Authority CEO. “Both states rank among the top eight maritime states in America with regard to tonnage moved.” Adding to the port authority’s economic impact is its on-site Wellsville Intermodal Facility, a $5.7 million, 70-acre terminal that provides cargo access to Gulf of Mexico ports. Wellsville Intermodal is already being used by oil and gas companies to transport raw materials and products to the Gulf. “Companies such as Anchor Drilling Fluids, Arrowhead Utica Pipeline, Cimbar Performance Minerals, Heritage Pipeline, Marathon Petroleum and Quality Liquid Feeds have located at the Wellsville terminal,” Drake says. “Wellsville allows barges to dock along the Ohio River and eventually gain access to the Tennessee-Tombigbee Waterway that goes to Mobile, Ala., or the Mississippi River to New Orleans.” Wellsville Intermodal is equipped with a 60-ton overhead crane that can lift crates to and from barges, railcars and trucks, and trucks have easy loading dock availability. Also for truckers, an interchange was constructed on OH State Route 7 to give them a direct route to Wellsville Intermodal. “The terminal also has Foreign Trade Zone designation to reduce duties and taxes for companies dealing in international trade,” Drake says. “A total of 43 percent of Ohio’s entire economy comes out of Northeast Ohio, and our port plays a major role.” Story by Kevin Litwin Photography by Jeff Adkins

Read more about transportation assets in the Oh-Penn Region at businessclimate.com/ohpenn.

The hotel’s friendly and experienced staff will cater to special requirements and make every guest feel at home. Whether traveling for business or pleasure, the Comfort Inn hotel provides inviting accommodations, affordable prices and exceptional customer service to every guest visiting the Austintown, Ohio area.

Newly Renovated Rooms Free Hot Breakfast Free USA Today Free Local Calls Outdoor Pool Fitness Center Free Wireless High-Speed Internet Access

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www.comfortinn.com/hotel-austintown-ohio-OH266

Financial Services

Banking on Tradition Regionâ&#x20AC;&#x2122;s deeply rooted financial services industry continues to grow

24 || Oh-Penn Interstate Region Economic Development

businessclimate.com/ohpenn

|| 25

he roots of business in the Oh-Penn Region run green. Financial services is a significant industry in the region and has been since the mid-19th century, starting with the founding of First National Bank of Pennsylvania in Hermitage, Pa., in 1864.

today, community-based ones, such as Mercer County State Bank, are still a vital part of the financial landscape. “We survived ‘merger mania’ because our board made a deliberate decision to stay independent,” Kaltenbaugh says. “We thought it was the best approach for our shareholders and our community.” The biggest advantage of being

Founded and headquartered in Hermitage, Pa., the First National Bank of Pennsylvania operates branches in more than 44 counties across three states.

“There were many small banks popping up around that time, possibly because of President Lincoln’s encouragement of establishing rural banks,” says Vincent J. Delie Jr., CEO of First National Bank of Pennsylvania, which serves 44 counties in three states from its headquarters in Hermitage. As recently as the 1970s, “there were many more individual, midsized banks – those with total assets under $1 billion,” says Ray Kaltenbaugh, president of Mercer County State Bank. “A lot of them grew aggressively, or merged and remerged.” Though top banking institutions dominate the region

a locally based bank is, well, being local, Kaltenbaugh says. “Our board members are from this area, and we make decisions here,” he says. “And we can offer a certain degree of flexibility in our lending that you likely won’t get from a national bank.” The approach has paid off. Mercer County State Bank currently operates 10 branches and maintains its own investment division and insurance agency. With $350 million in assets, the bank’s goal is 5 to 10 percent growth per year. “We pay dividends twice a year,” Kaltenbaugh notes, “and the payments go up a bit each year.”

26 || Oh-Penn Interstate Region Economic Development

Coming Back from the Recession The region’s financial services sector has been battered by the same economic forces as the rest of the country, but the tough perseverance of area firms has allowed many of them to weather the storm. One example is Home Savings and Loan Co., headquartered in Youngstown, Ohio. “When the recession hit in 2007, the real estate market was devastated,” says president and CEO Patrick W. Bevack. “We were declared a troubled institution and subjected to regulators’ cease-and-desist orders.” The company received nearly two dozen provisions for improving its performance, Bevack says. “It was a difficult, years-long process, but we turned things around,” he says. Home Savings is now the thirdlargest publicly held savings bank in Ohio, with assets of about $1.8 billion. Bevack credits the bank staff’s dedication and the region’s economic resurgence for the turnaround. He cites Youngstown’s $69 million National Additive Manufacturing Innovation Institute for invigorating industry in the community. And in 2012, Vallourec S.A. and Mannesmann Tubes stirred up even more excitement by opening a 1-millionsquare-foot pipe mill to service natural gas exploration in the nearby Marcellus Shale formation. “I’ve never been more confident in the future of our region and of our institution,” Bevack says.

New Avenues for Growth That confidence is also reflected in the growth of First National Bank of Pennsylvania. In the 44 counties where it operates branches, the bank holds the No. 3 market share in each one.

“We’re able to drive good results through investments in our sales management system, our infrastructure, and our ability to manage our branches,” Delie says. “And we use capital efficiently. If it’s not being deployed for growth, it goes back to our shareholders as dividends.” The firm also capitalizes on emerging trends. With the growth of electronic banking and bill paying, First National has been reevaluating the mission of its branches. “We want them to become financial centers – places where customers can learn about new products and consult with financial professionals,” Delie says. The bank also recently rolled out its Mobile Deposit smartphone app. Customers can deposit checks directly to their accounts by simply keying in the amount, photographing both sides of the check and pushing a “confirm” button. “First National was the first bank in our region to offer that service,” Delie says. “And it’s not just for business accounts; individual customers can use it too. We expect its use to spread. It’s one way we can compete with larger institutions.” In 2013, FNB plans to introduce customized account alerts and extend the capabilities of its personto-person payment capability. Online banking customers will also be able to access an interactive budget center and a single-view financial dashboard. “The rich history of the region brought banks here,” Delie says. “Although we’ve gone through periods of great difficulty, we’re back on the rebound.” Story by Frederick Jerant Photography by Jeff Adkins

Find more about the Oh-Penn Region’s financial services industry at businessclimate.com/ohpenn.

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An employee uses an ExOne M-Lab additive manufacturing machine at Youngstownâ&#x20AC;&#x2122;s National Additive Manufacturing Innovation Institute.

28 || Oh-Penn Interstate Region Economic Development

Manufacturing

Where Innovation Starts

region’s national additive manufacturing innovation institute ushers in new age of High-tech manufacturing

he Oh-Penn Region is changing the face of manufacturing. The August 2012 creation of the $69 million National Additive Manufacturing Innovation Institute in Youngstown, Ohio, part of President Obama’s plan to revitalize U.S. manufacturing, was a watershed moment. The first of 15 nationwide Institutes for Manufacturing Innovation, NAMII, directed by the National Center for Defense Manufacturing and Machining, is the “epicenter” for additive manufacturing, says Darrell Wallace, associate professor of mechanical and industrial engineering at Youngstown State University and acting deputy director of workforce and educational outreach for NAMII. Using advanced technologies and skills, additive manufacturing, or 3-D printing, is faster, cleaner and more energy efficient than traditional manufacturing. Far from the outdated image of manufacturing as a dirty, labor-intensive job, it

is a high-tech, sustainable and alluring form of production, Wallace says. “I can design something on the computer and hit print, and it comes out of this magic box,” he says. Applications are hardly theoretical. For example, a significant number of components for the Lockheed Martin F-35 joint strike fighter are manufactured using additive processes, Wallace notes. The institute advances these processes through collaboration with the region’s extensive network of manufacturers, colleges and universities, economic development groups and related organizations.

A Regional Approach Working with NAMII is the Pittsburgh-based TechBelt Initiative, a regional collaborative for economic growth that focuses on growing advanced manufacturing, energy and life sciences industries in the area. businessclimate.com/ohpenn

|| 29

TechBelt organized the initial team that wrote the proposal for NAMII, which emphasized the region’s capacity to collaborate and share knowledge and research

a specific activity, project or program we can leverage across the broader region?” says Jerry Paytas, whose Fourth Economy consulting company serves as the TechBelt staff. Efforts range from organizing the supply chain for specific industries to developing links within the region’s talent pool. TechBelt’s partners include economic development groups; universities; chambers of commerce; manufacturing partners, such as Catalyst Connection; and groups that assist startups, such as Innovation Works, JumpStart and the Youngstown Business Incubator.

Investing in High Tech

Molds for Mountain Dew bottles are created at Custom Etch in New Castle.

across disciplines as well as borders to develop talent for the high-tech manufacturing jobs of the future. “We bring these partners together to identify: Is there

Regionwide, manufacturers are reaping the rewards of high-tech investments. Some, like Custom Etch in New Castle, Pa., have used government tax breaks to buy cutting-edge equipment. Clients turn to Custom Etch for texturing and engraving of molds of aluminum, steel and other materials. The company owns the only two five-axis lasers in the United States. These half-milliondollar machines use laser ablation to remove metal from the surface of a mold to give it a texture. This technology, which replaces the hours of labor required with traditional photo etching, is used by “everybody from Coke and

Pepsi to General Motors to Masonite to Boeing,” says Don Melonio, vice president of sales. M-7 Technologies in Youngstown is another manufacturer experimenting with new technologies like additive manufacturing. The company uses digital database technology and advanced measurement systems to manufacture and repair heavy industrial products. These new processes reduce manufacturing costs, improve quality and reduce cycle times.

A Ripple Effect Regional leaders hope that NAMII and the spotlight on the region’s innovative culture will attract more new businesses and expertise, and enable universities like Youngstown State to draw students from a wider demographic to keep the region stocked with ideas and talent. “This (additive) technology affects IT professionals, materials scientists, engineers – virtually every STEM discipline,” says Michael Hripko, director of technology-based economic development at Youngstown State’s College of Science, Technology, Engineering and Mathematics. “We’re going to see some fantastic technology breakthroughs in the next couple of years.” Story by Jeff Walter Photography by Jeff Adkins

Breaking Down Additive Manufacturing How does it work? Additive manufacturing, often referred to as 3-D printing or rapid prototyping, works in a similar way to a laser printer. The technique builds a solid object from a series of layers, each one printed directly on top of the previous one. The raw material for additive-layer manufacturing (ALM) is a powder, which can be a thermopolymer or a metal – aluminum, stainless steel and titanium 6,4 are common. The machines’ operating software cuts the CAD model of the workpiece into slices, whose thickness depends on the type of material used. A blade mounted on a moving arm sweeps an even layer of the powder on top of the work surface inside the chamber, then a laser scans back and forth over the surface, melting the powder in the shape of the first layer. What are the benefits? According to the Department of Energy, additive processes have the potential to reduce the cost of materials by 90 percent and energy use by 50 percent. Applications for the technology are evolving everywhere, especially in industries such as automotive, aerospace and defense, materials manufacturing and biomedical services. Source: The Engineer

30 || Oh-Penn Interstate Region Economic Development

talent attraction

Talent Scouts Industry leaders recruit region’s best and brightest In the past, much of the Oh-Penn Interstate Region’s top young tech talent has been lured away by career opportunities elsewhere: Seattle, the Silicon Valley and the Boston area. But industry and academic leaders are working to win them back. The Youngstown Business Incubator has “made a concerted effort now for several years to locate the Youngstown diaspora,” incubator CEO Jim Cossler says. The YBI, with a portfolio of more than 30 emerging software companies, provides startups with opportunities for securing angel and venture capital investment. Social media networks are a vital tool for the YBI. Using the paid version of LinkedIn, which allows the targeted mining of millions of resumes, the incubator has pinpointed a wealth of qualified Youngstown alumni – as well as area natives who attended Harvard, MIT or Berkeley. Through the YBI, hundreds have visited the incubator, the National Additive Manufacturing Innovation Institute and the Oh Wow! center while home for the holidays. The result, Cossler says, is “a huge, powerful network” from which the portfolio companies can recruit. In addition to employment opportunities, Cossler says the YBI emphasizes the importance and convenience of living close to family members, as well as the area’s reasonable real estate market. Ultimately, whether these hometown whizzes relocate to Youngstown, Cleveland, Akron or Pittsburgh, the entire Oh-Penn Region benefits.

educational exchanges and collaborative sponsored research, says Michael Hripko, director of technology-based economic development at YSU’s STEM College. Hripko presents overviews of additive manufacturing to civic groups and even demonstrates technology, such

as 3-D printing, at high school science fairs. Such efforts get students excited about manufacturing as a future career, while also opening their eyes to the area’s expanding education and job options, Hripko says. Story by Jeff Walter

Building a Talent Base

The College of Science, Technology, Engineering and Mathematics at Youngstown State University is working to build talent in the region – and to keep talent from leaving as soon as they graduate. The college partners with regional manufacturers to create co-op and internship opportunities, offer testing services and facility tours, and initiate

businessclimate.com/ohpenn

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Education

Training Talent T

Oh-Penn Region Emphasizes workforce preparation and STEM Education

he Oh-Penn Region deserves high marks for its strong education network that prepares today’s students to be tomorrow’s workers. The region distinguishes itself with several reputable colleges, universities, career and technical centers, and vocational schools, all of which are placing a growing emphasis on STEM (science, technology, engineering and math) education. At Youngstown State University, the College of STEM program occupies four buildings on campus. “About 20 percent of all current students at YSU are in the College of STEM curriculum,” says Martin Abraham, YSU’s College of STEM dean. “The college integrates the four course subjects

together so that students are more suitable to high-tech companies when they graduate. It provides a one-stop shop for companies looking for a top scientist, engineer or technologist.” Abraham says several local businesses and industries offer internships, co-op opportunities or full-time careers to students in the program. “Interested companies include Ajax Tocco Magnethermic Corporation, Dearing Compressor & Pump Company, Delphi Packard, FirstEnergy, General Electric, Goodyear Tire & Rubber Company, The Timken Company, the Pennsylvania Department of Transportation and the U.S. Navy,” he says. “We even had one student do a summer 2012 internship in South Korea to work on an electric vehicle concept.”

32 || Oh-Penn Interstate Region Economic Development

High-Growth Careers Other higher education institutions throughout the region are also emphasizing STEM education. Westminster College in New Wilmington, Pa., recently received a $7 million gift to establish The Lemmon Family Scholarships for students who seek careers in the sciences. It has also been recognized by Forbes as the one of best schools in the nation for women pursuing careers in STEM fields, and the college’s graduates are accepted into medical school at double the national average. Grove City College in Grove City, Pa., is also constructing a new STEM building that is set to open in August 2013, while Butler County Community College in Butler, Pa., has job training programs that help displaced

Head of the Class

Calling All Nurses At Eastern Gateway Community College in Steubenville, Ohio, officials have added new environmental science and security programs in response to industry needs, while Penn State Shenango in Sharon, Pa., has partnered with the School of Nursing at Sharon Regional Health System to offer more course opportunities for students to earn higher nursing degrees. Through the partnership, which was announced in 2012, qualified students will be able to obtain both a bachelor of science in nursing from Penn State Shenango and a diploma in nursing from Sharon Regional.

A student works with solar cells as part of Youngstown State University’s College of STEM program, which prepares students for high-tech jobs.

The same holds true at Kent State University Trumbull in Warren, Ohio, which plans to debut an RN to BSN nursing program beginning in the fall 2013 semester. “There is a push nationwide to have a more educated workforce in the nursing industry, so our RN to BSN program is designed for those nurses who have diplomas or associate degrees to transition to the bachelor’s degree programs,” says Dan Palmer, assistant dean at Kent State University Trumbull. “Hospitals are looking for a more educated workforce to better meet the increasing challenges of today’s health-care system, which is why Kent State

Staff photo

workers find jobs in high-demand industries like the region’s fastgrowing natural gas sector. In addition, the Pennsylvania Commission for Community Colleges has established JobTrakPA, which is part of the Trade Adjustment Assistance Community College and Career Training federal grant program, that uses fast, affordable retraining to help the state’s displaced workers regain employment. The mission of JobTrakPA is for individuals to enroll in community college classes for rapid retraining to become employable in industries such as advanced manufacturing, energy distribution, production, conservation and health-care information technology.

jeff adkins

Grove City College’s Career Services Office was ranked No. 12 in the nation by The Princeton Review for Best Career/Job Placement Services in its college rankings guide, The Best 377 Colleges, 2013 Edition. Grove City College was among four Pennsylvania institutions in the top 20. Graduates boasted a 94 percent placement rate in jobs or graduate school within the first six months of graduation in 2011, and the college was recognized for discussing job market options with students as early as their freshman year. Recent graduates work for companies such as Bayer, Marathon Oil, Microsoft, Northwestern Mutual, PPG Industries and Tyco International.

Westminster College is a top school for women interested in STEM careers.

businessclimate.com/ohpenn

|| 33

Education and Training Providers in the Oh-Penn Region

Institution

Locations

Website

Allegheny Wesleyan University

Salem

www.awc.edu

Columbiana County Career and Technical Center

Lisbon

www.ccctc.k12.oh.us

East Liverpool, Salem and Warren

www.kent.edu

Northeast Ohio Bible College

East Liverpool

www.neobc.org

Ohio Valley College of Technology

East Liverpool

www.ovct.edu

Choffin Career and Technical Center

Youngstown

www.choffincareer.com

Eastern Gateway Community College-Valley Center

Youngstown

www.egcc.edu

Mahoning County Career and Technical Center

Canfield

www.mahoningctc.com

Walsh University Canfield Campus

Canfield

www.walsh.edu

Youngstown, Niles

www.ysu.edu

Youngstown

www.national-college.edu

Warren

www.egcc.edu

Niles

eticollege.edu

Trumbull Business College

Warren

www.tbc-trumbullbusiness.com

Trumbull Career and Technical Center

Warren

www.tctchome.com

Lake Milton

www.tdds.edu

Niles

www.rosseducation.edu

New Castle, Hermitage

www.bc3.edu

Erie Business Center South

New Castle

www.eriebc.edu/newcastle

Jameson Memorial Hospital School of Nursing, Radiography

New Castle

www.jamesonhealth.org

Lawrence County Career and Technical Center

New Castle

www.lcvt.tec.pa.us

New Castle School of Trades

New Castle

www.ncstrades.edu

New Wilmington

www.westminster.edu

Grove City College Grove City

www.gcc.edu

Kent State University

Youngstown State University National College Eastern Gateway Community College-Warren Center ETI Technical College of Niles

TDDS Technical Institute Ross Medical Education Center Butler County Community College

Westminster College

Laurel Technical Institute

Sharon

www.laurel.edu

Mercer County Career Center

Mercer

www.mccc.tec.pa.us

Penn State University Shenango

Sharon

www.shenango.psu.edu

Sharon Regional Health System School of Nursing, Radiography

Sharon

www.sharonregional.com

Thiel College Greenville

www.thiel.edu

Venango Technical Center-Hermitage Campus Hermitage

www.keystonecec.org

34 || Oh-Penn Interstate Region Economic Development

is rolling this out.” Palmer says the nursing students will participate in classroom work, online classes and hospital training, and they could earn their bachelor of science degree in nursing within 18 months. “A total of 20-25 students will start in the fall 2013 semester,” Palmer says. “The Kent State University College of Nursing is the largest nursing school in the state of Ohio, with about 43 percent of the entire Northeast Ohio workforce of nurses having graduated from the Kent State program.” Kent State Trumbull is also looking into establishing a veterinary technology program beginning in late 2013, while the KSU East Liverpool campus recently spent $700,000 to upgrade its nursing laboratory. More than half the grant went toward the purchase of a METIman nursing patient simulator, which is a full-body wireless instrumented adult mannequin that has blinking eyes, reactive pupils, chest excursion, tongue swelling, cardiac rhythms, lung and bowel sounds, convulsion capabilities, and a simulated pulse. Story by Kevin Litwin

Digital Magazine Read it online or on your tablet and quickly share articles with friends.

energy

Power Play Rapid Marcellus, Utica shale development fuels record growth in regionâ&#x20AC;&#x2122;s oil and gas industry Most Shale Energy Jobs Created by State Texas

Pennsylvania

California

Louisiana

Colorado

576,000

102,600

96,500

78,900

77,600

36 || Oh-Penn Interstate Region Economic Development

he Oh-Penn Region is fast becoming one of the nation’s energy hotspots, with development of the Marcellus and Utica shale plays fueling the region’s growing oil and gas industry. Energy giant BP has set up a hub for its Utica drilling operations at Youngstown and plans to drill 10 wells in Trumbull County in 2013. Hilcorp Energy is investing $300 million in a new transmission network for its existing wells. And Chesapeake Energy, the nation’s secondlargest natural gas producer, has seen exponential growth in the northeast Ohio operation it opened in January 2011. According to Pete Kenworthy, Chesapeake’s manager of media relations, the company has invested more than $3 billion in both shale plays, drilling 134 wells and increasing its regional staff from 40 to 550. In 2013-14, the company plans to grow its production capacity by investing heavily in

processing facilities and pipelines. But Chesapeake’s money isn’t just going to its business operations. The company also donates generously to local charities such as United Way and Habitat for Humanity. Chesapeake also provides each employee with four hours of paid time annually to volunteer in the community. “Having grown up in this part of Ohio, I’m excited to see so many locals benefit from the Utica shale development,” says Keith Fuller, the company’s senior director for government affairs. “We at Chesapeake look forward to expanding the benefits of this economic opportunity.”

Downstream Growth Downstream businesses in the energy industry are also recognizing the area’s growth potential. In 2012, leading barium sulfate producer Cimbar Performance Minerals completed a $6.5 million expansion and doubled the workforce at its Wellsville minerals processing

plant. And Marathon Petroleum, which operates a wet gas holding facility in Wellsville, has invested $2.4 million to acquire property for an accompanying pipeline. Another example is Exterran, which manufactures custom and stock production equipment for the oil and gas industry. The company’s new $13 million Youngstown facility, completed in spring 2013, is projected to be at full production capacity by the year’s end. While Exterran was drawn to the region because of its shale plays, the company chose Youngstown in particular for the support it received from the state and local governments, says manufacturing manager Mike Lyons. The city of Youngstown provided a 10-year tax abatement, and the state of Ohio gave incentives to assist with infrastructure improvements. “Everyone went above and beyond the call of duty to get us here,” Lyons says. “The professionalism and helpfulness I’ve encountered have made my job really easy.”

Projection for Most Shale Jobs Created by 2020 Texas

Pennsylvania

California

Oklahoma

Ohio

929,400

220,600

153,600

149,600

143,600

Source: U.S. Chamber’s Institute for 21st Century Energy

businessclimate.com/ohpenn

|| 37

He says the city’s stellar workforce was also a draw for Exterran, which needs employees who are accustomed to the rigors of precision manufacturing. “The workforce here is second to none,” Lyons says. “These guys have great attitudes and a great work ethic, plus the knowledge base to make them trainable.”

Support for Oil, Gas Industry The Oh-Penn Region’s long history as a steel producer gives

Tanker trucks deliver water for fracturing

it the “manufacturing DNA” to foster growth for energy supply chain companies like Exterran, says Eric Planey, vice president of international business attraction for the YoungstownWarren Regional Chamber. The chamber itself is also a major contributor to the oil and gas industry’s growth. The organization’s hallmark program is its YOUNG (Youngstown Ohio Utica and Natural Gas) events series, which includes an annual

Pumper injects sand, water and chemicals into the well

trade show and conference, educational seminars, and golf outings that double as highpowered networking events. The newest YOUNG event is an American Petroleum Institute certification program for shale supply chain manufacturers from Cleveland to Pittsburgh and everywhere in between. “This is something that’s been very well received by the industry, because they want to use local suppliers, but those suppliers have

Natural gas flows out of the well into storage tanks

Recovered water is stored in open pits before taken to a treatment plant

Hydraulic Fracturing Through the process of hydraulic fracturing, also known as “fracking,” natural gas is extracted from shale plays. More than a million gallons of water, sand and chemicals are injected into the shale’s horizontally drilled wells at a high pressure as far as 10,000 feet below the surface. Due to the pressure and mixture of materials, the rock layer cracks, and sand particles enable the fissures to remain open so that the natural gas can flow up the wells. Once the gas is obtained, it is transported to a pipeline for delivery, and the recovered water is taken to a treatment plant.

38 || Oh-Penn Interstate Region Economic Development

Shale is fractured by pressure inside the well. Natural gas flows from the fissures into the well

to be qualified,” Planey says. “It’s not something that’s typical for a chamber to do, but we know how important it is for the industry.” Overall, that kind of attentiveness is what helps make the region a great choice for the oil and gas industry. “Oil and gas is a 24/7 industry, so we try to provide 24/7 responsiveness,” Planey says. “ We want to be the one-stop shop for the oil and gas industry.” Story by Kathryn Royster

Gas is trucked to a pipeline for delivery

[Now] the odds for a high-tech future are stacked in our favor. The Mahoning Valley has become a center of successful tech-based entrepreneurism led by an incubator focused exclusively on growing technology companies. With a track record of launching successful companies and a growing portfolio of B2B software firms, the Youngstown Business Incubator is rebooting the future in what can no longer be called the rust belt. For more information, contact: YBI Evangelist – Jim Cossler at jcossler@ybi.org YBI COO – Barb Ewing at bewing@ybi.org

Youngstown Business Incubator 241 W. Federal St. Youngstown, OH 44503 330.746.5003

www.ybi.org

the future rebooted.

40 || Oh-Penn Interstate Region Economic Development

Economic profile Population Mahoning County, OH: 237,270 Columbiana County, OH: 107,570 Trumbull County, OH: 209,264 Lawrence County, PA: 90,535 Mercer County, PA: 116,205 Oh-Penn Region: 760,844

Labor Force

368,488 Major Population Centers Youngstown, OH:

66,982 Warren, OH:

41,557 New Castle, PA:

23,273

Major Employment Sectors 1. Trade, Transportation & Utilities: 21% 2. Educational & Health Services: 20% 3. Government: 13% 4. Manufacturing: 13% 5. Leisure & Hospitality: 10% 6. Professional & Business Services: 10% 7. Construction & Mining: 4% 8. Financial Activities: 4% 9. Information: 1% 10. Other: 4%

9 7

10 1

6 5 2 4

Cost of Living

Median Household Income:

Austin, TX

Mahoning County, OH

Lawrence County, PA

95.6

$40,570 $43,821

Charlotte, NC

Columbiana County, OH

Mercer County, PA

Tampa, FL

Trumbull County, OH

94.7

93.0 Youngstown-Warren, OH

88.2

$41,003

$43,504

$42,441

Sources: www.quickfacts.census.gov, http://regionalchamber.com, www.ohpenn.org

This section is sponsored by

Lawrence County … our location is YOUR advantage! • Skilled workforce • Desirable quality of life • Shovel-ready sites

724-658-1488 www.LawrenceCounty.com

Economic Development Corporation Chamber of Commerce • Tourism Promotion Agency

livability

Distinctive Destinations The Oh-Penn Region offers A wealth of Live entertainment, culture and history 42 || Oh-Penn Interstate Region Economic Development

Named for President William McKinley, the McKinley Memorial Library in Niles, Ohio, is one of the top cultural attractions in the Oh-Penn Region.

ive performances, shopping and dining, and sporting events create a thriving entertainment scene in the Oh-Penn Region. The area’s rich history adds to its appeal, making it a popular place for museums and cultural centers. One of the area’s most frequented entertainment destinations is the Covelli Centre in Youngstown, Ohio. Home to the Youngstown Phantoms hockey team and the Little Steel Derby Girls, the

facility has hosted acts including Elton John, Carrie Underwood and the Trans-Siberian Orchestra. Also in Youngstown, DeYor Performing Arts Center hosts the Youngstown Symphony Orchestra’s concerts, as well as events from traveling entertainers and groups. The city has something for sports fans, too, thanks to Stambaugh Stadium at Youngstown State University. The 206,300-seat venue is home to the YSU Penguins football team.

Sports fans also gravitate to Eastwood Field in Niles, Ohio, where the Mahoning Valley Scrappers baseball team plays. The field is also a popular place for concerts, hosting big-name artists like Kenny Rogers and Gary Allan in recent years. Nearby in Warren, Ohio, the 60-member Warren Philharmonic Orchestra entertains audiences with instrumental music. For theatrical performances and musicals, the New Castle Playhouse in New Castle, Pa., has two venues – Augustine businessclimate.com/ohpenn businessclimate.com/ohpenn

|| 43

Birthplace Memorial. The sites are named after the 25th president of the United States, William McKinley, who was born in Niles. Also named after a local celebrity, the Lou Holtz Upper Ohio Valley Hall of Fame in East Liverpool, Ohio, honors residents’ accomplishments and contributions to the community.

Diverse Shopping and Dining

The Youngstown Phantoms compete against the Indiana Ice at the Covelli Centre.

Auditorium, the main theater, and Annex Theatre – where it puts on shows each season. New Castle is also home to the Scottish Rite Cathedral, which has a 2,800-seat auditorium that hosts the New Castle Lyric Opera and is considered the Pittsburgh Symphony Orchestra’s “home away from home.” At Westminster College in New Wilmington, Pa., an annual Celebrity Series draws top entertainers to the area. Performers such as LeAnn Rimes, the Midtown Men and Straight No Chaser have graced the stage of the college’s Orr Auditorium during the series.

Must-See Attractions Museums and cultural centers are also prevalent throughout the Oh-Penn Region. In New Castle, the Hoyt Center for the Arts features permanent collections

with items such as vintage toys and antique furniture, as well as rotating exhibits. Pennsylvania also has the SNPJ Slovenian Heritage Center in Enon Valley, which displays Slovenian costumes, household items, artwork and crafts. In Youngstown, Butler Institute of American Art showcases collections of paintings from four centuries, as well as rotating exhibitions that include works such as fiber art and photographs. Youngstown also has the Oh Wow! Children’s Center for Science and Technology where kids of all ages enjoy hands-on exhibits, special events and educational programs. Warren is home to the National Packard Museum, which includes exhibits of vehicles from Packard Motor Co. Nearby, the McKinley Memorial Library in Niles is free and open to the public, and includes the McKinley Memorial Museum and National McKinley

With more than 130 stores, Grove City Premium Outlets in Grove City, Pa., attracts shoppers throughout the region and is home to retailers such as J. Crew, Nautica, Juicy Couture and Banana Republic. Antique and specialty shops are easy to find in Amish country, which includes Lawrence County, Pa. New Wilmington has the Amish Peddler, offering custom furniture, while Volant is home to Teena’s Quilt Shop, where shoppers can find Amish quilts and crafts. New Wilmington also has Apple Castle, a family farm that has grown fruits and vegetables since 1861. The farm sells jellies, apple butter, honey and dried fruit, and is open year-round. When it comes to restaurants, Springfield Restaurant Group has the region covered with Rachel’s Roadhouse in Mercer, Pa.; Hickory Bar & Grille in Hermitage, Pa.; and Springfield Grille in both Mercer, Pa., and Boardman, Ohio. The quick, casual motor-themed Quaker Steak & Lube, which is based in Sharon, Pa., is another popular local eatery. Story by Jessica Walker Boehm Photography by Jeff Adkins

Reviving Downtown Main Street Warren, a volunteer-based organization focused on revitalizing the city’s downtown area, will be hard at work throughout 2013. The group was called on by Mayor Doug Franklin to promote downtown Warren, and as a result, members will serve as the city’s welcoming committee when businesses begin or relocate in the downtown area. The group also plans to work with the Trumbull Neighborhood Partnership to showcase available downtown commercial and residential properties on the city’s website. Main Street Warren will also continue to renovate Dave Grohl Alley, home to a variety of murals and the world’s largest drumsticks.

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Outdoor Recreation

Rustic Retreats Region is full of natural attractions Parks, hiking trails, golf courses and lakes make the Oh-Penn Region the perfect place for outdoor junkies.

Pennsylvania Parks

McConnell’s Mill State Park in Lawrence County comprises more than 2,500 acres of the Slippery Rock Creek Gorge, which offers rugged hiking trails, while the Slippery Rock Creek is ideal for whitewater boating. Additionally, the park has climbing and rappelling spots, including in the Rim Road and Breakneck Bridge areas. Also located in Lawrence County, West Park Nature Center has walking trails, a wildlife sanctuary and wetlands, and includes the two-mile Park Harbor Bike Trail. In Mercer County, the 2,856-acre Maurice K. Goddard State Park has 14 miles of hiking trails, as well as a 12-mile bicycle trail that also accommodates snowmobiling, crosscountry skiing and other activities. The park encompasses more than 1,150 acres of hunting and trapping areas and is home to the 1,860-acre Lake Wilhelm, which has largemouth and smallmouth bass, walleye, Northern pike, muskellunge, bluegill and catfish.

Mill Creek MetroParks, a park district that spans more than 4,400 acres in the Mahoning Valley area. The district includes Mill Creek Golf Course, which has two 18-hole courses, as well as Fellows Riverside Gardens, where more than 400,000 visitors travel annually to see 12 acres of plants and flowers. The district also has an 11-mile bikeway, hiking trails and paths, and several lakes.

Ohio Parks

Eastern Ohio also has plenty of places to enjoy the outdoors, including

Ohio is also home to the 43-mile Western Reserve Greenway, which stretches from Ashtabula to Warren, as well as various state parks. The state features the 396-acre Guilford Lake State Park and the 2,722-acre Beaver Creek State Park, both located in Columbiana County, as well as the 2,483-acre Mosquito Lake State Park in Trumbull County. Story by Jessica Walker Boehm

Slippery Rock Creek at McConnell’s Mill State Park in Lawrence County

• Loan Programs • Industrial Parks Mahoning Valley Economic Development Corporation 4319 Belmont Ave. Youngstown, OH 44505 (330) 759-3668 Youngstown (330) 369-6026 Warren

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businessclimate.com/ohpenn

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health care

Raising the Bar

igh-quality patient care is a given in the Oh-Penn Region, which encompasses Columbiana, Mahoning and Trumbull counties in Ohio, and Lawrence and Mercer counties in Pennsylvania. With 17 licensed hospitals in the five-county region, patients have access to state-of-the-art facilities, specialty physicians and the latest technologies through health-care systems that are continually enhancing their services. Ohio’s East Liverpool City Hospital is just one example. The hospital recently introduced new orthopedic services, as well as a 15-bed pediatric unit that will be operated by Akron Children’s Hospital. Another example is the $100 million expansion of the St. Elizabeth Boardman Health Center, which is part of the Humility of Mary Health Partners network in Ohio. The hospital

is adding 122 patient beds, four surgical sites and maternity care. “We are adding rooms at SEBHC because the suburbs are where the population is growing in Mahoning County,” says Genie Aubel, president of St. Elizabeth Boardman Health Center.

Renovations and Upgrades Humility of Mary Health Partners is also investing $70 million to renovate its St. Elizabeth Health Center in Youngstown, where it is preparing the area’s only tertiary care hospital, Level I Trauma Center and major teaching hospital to meet the next 25 years of community needs. All of Humility of Mary Health Partners’ facilities have been named among the top performing hospitals by U.S. News and World Report. In Pennsylvania, UPMC Horizon’s Greenville and Shenango Valley campuses, both recognized for excellence by the Joint Commission, have upgraded their medical imaging equipment.

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Hospitals in the Oh-Penn Region boost technology, services and facilities

A renovated mammography suite is now available at the Greenville campus, and a new wide-bore magnetic resonance imaging (MRI) unit provides imaging services at the Shenango Valley campus. The health provider has found innovative uses for its electronic medical records, says Don Owrey, president of UPMC Horizon. The hospital will soon make every part of a patient’s records, including physician’s records, available so health care can become proactive rather than reactive. “As a large system we can gather all the data and target those with specific conditions so we can be creative and manage them proactively as opposed to after they hit the hospital,” Owrey says. “This is the same technology that exists at larger academic cancer programs. Patients here don’t have to leave the local market to receive this treatment. They can get it here.” Jameson Hospital in New Castle, Pa., is also expanding its offerings with new $20 million emergency

and surgical departments. “It’s a whole new 55,000 -square-foot wing,” says Lisa Lombardo, director of public relations for Jameson Hospital. “It’s a new three-story building with the emergency department on the ground floor, and the first level is the surgical department.” The new wing includes operating rooms, same-day surgery services, and a waiting and recovery area. “It’s a dream 10 years in the making,” Lombardo says. The hospital also offers a new OB-GYN clinic and technology to boost patient safety.

Accolades and Awards Other hospitals in the region also exhibit a record of excellence. In Ohio, Trumbull Memorial Hospital was one of 14 hospitals in the state to receive the Joint Commission Gold Seal of Approval for its knee and hip joint replacement services. Sharon Regional Health System in Pennsylvania has also received endorsements for its patient care. It incorporated a new emergency room model in 2011 called Physicians First, which requires that all patients see a physician as soon as they enter the emergency room. The physician can start any diagnostic processes while the patient then goes through the typical registration process. “We were recognized for operational excellence in the ER for that model,” says Ed Newmeyer, director of marketing and community relations at Sharon Regional Health System. These innovations and enhancements represent just a small sample of what hospitals throughout the area are doing to provide cutting-edge health-care services to residents in the Oh-Penn Region. Story by Kelly Kagamas Tomkies Staff Photography

Sharon Regional Health System in Sharon, Pa. is one of several hospitals in the region that has received high marks for its patient care.

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Ad Index

23 Austintown Comfort Inn

40 Bruce & Merrilees Electric Company

27 City of Farrell

2 City of Hermitage

31 City of Youngstown- Economic Development

1 Columbiana County Port Authority 10 Ellwood City Area Chamber of Commerce

45 Mahoning Valley Economic Development Corporation

C2 NECA/IBEW/LMCC

48 New Castle School of Trades

C3 Penn-Northwest Development Corporation

45 Sharon Regional Health System

6 West Central Job Partnership

39 Youngstown Business Incubator

47 Huston Industrial Sales

C4 Youngstown State University

35 Kent State University at Trumbull

41 Lawrence County Tourism Promotion Agency

40 First National Bank

15 Home Savings Bank

19 Youngstown â&#x20AC;&#x201C; Warren Regional Chamber

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visit our advertisers Austintown Comfort Inn www.choicehotels.com/ hotel-austintown-ohio-OH266 Bruce & Merrilees Electric Company www.bruceandmerrilees.com City of Farrell www.cityoffarrell.com City of Hermitage www.hermitage.net City of Youngstown Economic Development www.ytowndevelopment.com Columbiana County Port Authority www.ccpa-ohioriver.com Ellwood City Area Chamber of Commerce www.ellwoodchamber.org First National Bank www.fnb-corp.com Home Savings Bank www.homesavings.com Huston Industrial Sales www.hustonind.com Kent State University at Trumbull www.trumbull.kent.edu Lawrence County Tourism Promotion Agency www.visitlawrencecounty.com Mahoning Valley Economic Development Corporation www.mvedc.com NECA/IBEW/LMCC www.neca-ibewelectricians.com New Castle School of Trades www.ncstrades.edu Penn-Northwest Development Corporation www.penn-northwest.com Sharon Regional Health System www.sharonregional.com West Central Job Partnership www.wcjp.org Youngstown Business Incubator www.ybi.org Youngstown State University www.ysu.edu Youngstown – Warren Regional Chamber www.regionalchamber.com

48 || Oh-Penn Interstate Region Economic Development