When a Company Comes to Town

Headline local news in my area is Neiman Marcus is coming to town in a few months. No, not theglamorousto-die-for store with the Louboutins;a 198,400-square-footdistribution center in a not-sexy-at-all industrial park - with an expected 151 jobs and investment of$12 million for leasehold improvements, equipment purchases and employee training.

The reviews are mixed. One woman interviewed on 6pm news on TV said she thinks it's great, people will be able to support their families. Online the comments are much less favorable and contrary. For example..

This area is not perceived to have a highly skilled workforce (rightly so) and doesn't attract many companies that 'pay well' (unfortunately). You might think with no less than 16 colleges and universities around here companies would be flocking in. However, that's not the case and getting college students to stay here is quite a challenge (over 50% are out of state students). Our regional colleges pop out so many mass comm, marketing and accounting grads (because that's what students like and they are in the business of selling education) - area industry simply cannot support them all and so they leave for greener pastures creating the very real phenomenon of 'brain drain'. Combine that with low levels of high school diploma and college degree attainment of the native home grown populous and it's quite a catch 22.

Ask engineering and IT companies in the area if they can ever fill ALL their positions - the answer is a resounding no, yet at the same time, the local cost of living doesn't support external recruiting because of the low salaries compared to other markets. It's quite sad really...

Northeastern PA (NEPA) is a logistics and transportationcorridor due to its accessibility to interstate highways - this was a planned strategic initiative by regional chambers and economic development agencies and the State of PA over the past 40 years or so, as the 'solution' to replace the loss of mining and then manufacturing jobs - in part because such a significant sector of the population wasn't prepared to transition to higher skilled work. However, this type ofnearsighted bandaidstrategy has sorely held us back.

Despite the abundance of educational opportunity available in Northeastern Pennsylvania, only approximately half of the local population pursues higher education, which irrefutably enhances the quality of any workforce. The concept of brain drain continues to be an issue in our region, which basically means that our own students seek education elsewhere, while our own colleges and universities attract students from other parts of the country especially Southeastern PA, New York and New Jersey who, in turn generally leave our region upon graduation.

Written Testimony to the US House of Representatives
Raymond S. Angeli, President
Lackawanna College

What to do?

Entrepreneurism must grow stronger, seed and root here, train here, and hire local. The state should invest money in local entrepreneurial initiatives - not in trying to attract low skill, low pay big boxes and retailers with tax incentives that benefit ridiculously wealthy commercial real estate brokers but not workers who need and deserve to earn family sustaining wages.

And that's my two cents for today. What's yours?

P.S. If you do want go after one of these upcoming sure to be highly sought after jobs, I don't suggest you wait till the masses apply. They aren't posted yet but why leave what you can do today for tomorrow? Establish relationships now! I checked LinkedIn and many of their key HR people are on there and they are way big on networking. Hint, hint...

Comments

tombolt / Jul 10, 2012 @ 6:21 AM

This is such an important topic. There are no doubt countless communities where this story is repeated, but knowing personally the hardships of some of the people who live there makes NEPA a particular concern for me. I could write volumes on the heartbreak of people who want better but are trapped and have no choice but to move elsewhere or settle for more hardship. Unfortunately, the lure of business to the area is cheap labor. I am not sure whether Neiman Marcus should be applauded for their actions or scolded for their motivation, but at least there is one more opportunity for employment in the area. A lot more are needed. Every community needs to find that magic formula that makes it a place to go to instead of a place to go through.

karlaporter / Jul 10, 2012 @ 7:01 AM

@tomboltYou said a mouthful Tom- unfortunately, the lure of business to the area is cheap labor. I can’t fault Neiman Marcus, as Gov. Corbett said, they could have gone other places, and we need the jobs here. In a more balanced local economy this would be a non-issue because every community needs a good mix of employment opportunities for workers of all skillsets. The problem of course is when most every jobs announcement the Governor makes for this area is of the warehousing kind. There will be supervisory and management opportunities for a few and those individuals and their families will be very, very happy. Culturally this community is healthy is other areas and that’s a plus. It will continue to be a good place to live as long as it can stave off the undesirable urban influences encroaching into the valley from over the Poconos in NY and NY.

genagrippa / Jul 12, 2012 @ 7:05 AM

Great topic Karla.

NEPA, for a variety of reasons, has a strong distrust of the private sector when it comes to employment. Part of me believes that there is an almosthereditary memory, if you will, back to the coal mining days when Coal Barons raped and pillaged the land and its communities. Regardless, when your largest employers in a region are the government (and you are not home to, say, an Air Force base) then that says a lot about a community. The ironic part is that the large number of governmental jobs (be they local, state, or federal…”Da Depot”) in turn reinforces the notion that the best jobs aren’t be had in the private sector. It all seems to be aviscouscircle of sorts that will eventually come crashing into itself one day when “Da Depot” closes (which it will…).

Speaking of the “Da Depot”, ever notice that when there is even a slight threat to Tobyhanna Army Depot the local chambers of commerce come rushing in Marines on a beachhead? It’s been my experience that they DON’T do the same when there is a similar threat in the private sector. Trust me, I know. Reason? I’m not sure, but see above for at least a partial explanation. When the people who supposedly push for private sector economic development seem more interested in government-sector jobs, well maybe that leads to what you are discussing regarding Neiman Marcus.

Now I don’t fault Neiman Marcus for wanting to build a low cost distribution facility in NEPA. In fact they should be welcomed with open arms. But there are valid questions to be asked about the kinds of industry being attracted to NEPA and the efforts (or lack thereof) to diversity the economy…which includes fostering the vigorousentrepreneurialspirit you rightfully noted. To the best of my knowledge the local chambers of commerce don’t do much when it comes to diversification orentrepreneurship. In fact, the local Small Business Development Center is run by the University of Scranton (in cooperation with the federal Small Business Administration and the PA Department ofEconomicDevelopment)…anything appear to be missing in thatequation?

We have low paying jobs and a high unemployment rate in NEPA in part because we tolerate it…

…we tolerate elected officials who seem more interest in self enrichment than community enrichment (Bob Mellow & countless others).

…we tolerate local chambers of commerce that seem interested in protecting existing businesses from labor competition and maintaining an economy that is overly dependent on the public sector for jobs.

…we tolerate and perpetuate stereotypes about ourselves that are not self-serving. We are defeatest and we don’t question authority nearly enough in NEPA. It’s no wonder it took the FBI to take down the judges in Luzerne County, Bob Mellow and countless others…we kept re-electing these people who were harming our communities! For example, Bob Mellow should have been thrown out office the moment he, as as sitting Senator, started serving on the board of the local “Blue” (a business he played a part in regulating as a member of the PA Senate…conflict of interest anyone?).

In the end, all of this will continue until we demand something be done about it. Period.

For the record, I’ll be cross posting this onwww.sgalbert.com, as I am never one to not recycle content.

Thanks again Karla for the great topic & I apologize in advance for any typos.

karlaporter / Jul 12, 2012 @ 8:29 PM

@genagrippaI didn’t see any typos! I had my eyes wedged wide openworkingfor one of our local chambers but not for the reasons you mentioned. They are non-profit enterprises that exist to support the businesses that are members. They do some economic development work via business incubators, etc. It could be much improved, no doubt there. The government doesn’t pay to be a member so a place like Tobyhanna doesn’t exactly benefit a chamber except in the sense a large employer keeps a significant population employed and the unemployment rate manageable and that is a benefit for any community. Federal employment is highlydesirable for the benefits and working conditions and people are very attracted to that type of opportunity. SBDC’s and chambers are friendly but not connected. In Wilkes-Barre, the Wilkes University SBDC resides in the Chamber owned and operated business incubator The Innovation Center as a resource to the small start ups taking root there. Our problems are rooted in culture and custom – for certain. The cycle of low graduation statistics needs to be broken. As you statedwonderfully, we tolerate unacceptable things here. However, I don’t believe the answer it to demand something be done about it. We the community need to get up and ‘do’ something about it. thanks for posting onwww.sgalbert.com – and for the time you took to provide a very thoughtful response.

When a Company Comes to Town

Jul 09, 2012 / 4 comments

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