by Peter Panepento
The candidates, advance teams, Secret Service, and famous spouses are all gone.
The Fortune 500 CEOs, the money managers, and the Wall Street analysts have all headed home.
The TV personalities, print reporters, and financial journalists have all moved on to other stories.
For a short time, Erie was a prime location on the news map.
It was a key battleground for the Pennsylvania primary — and the home of GE’s annual shareholders’ meeting.
By most accounts, the city was up to the task. The locals were hospitable. The streets were clean. The PR machine was in full force.
The question now: Will it make a difference?
Will the flash of attention lead anyone to consider Erie as a location for a business expansion? Will some of those who visited want to come back to visit its beaches? Will outsiders see the community as something more than a Rust Belt burgh?
The answer won’t come for awhile.
But I suspect it will rely, in part, on the follow up.
Will those who are charged with Erie’s story go back to business as usual now that the bright lights are shining elsewhere?
Or will they continue to push the story, to follow up with their new contacts, and leverage this new exposure?
After more than six years working as a journalist in Erie, I'm now the web editor for the Chronicle of Philanthropy in Washington, D.C., and the publisher of GlobalErie.com. I still maintain close ties to Erie - a community that I care about deeply. I hope this Web site can help inspire a better future for Erie.
George Vietze
April 24th, 2008 at 9:16 am
The fact that the election is over and the GE meeting is over is not the end of the Erie story, its much more like the BEGINNING of the Erie story. A lot has been done to share the NEW Erie with many people that have had old perceptions of the OLD Erie. Erie is not a mirage, this is not smoke and mirrors, a city the size of Erie that has a MANUFACTURING base, a MEDICAL base, an EDUCATIONAL base, a TOURIST base, a GAMBLING center and soon to be thoroughbred HORSE base has a lot going on.
The downtown is being re-vitalized and has both the local and State politics behind the move to help make Erie position itself as a GAMBLING hub for the State of Pennsylvania. The Convention Center and new hotel on the Bayfront is just the beginning and impetus for developing the Bay Front. The airport’s viability for easier air access will go a long way towards business leaders looking seriously at investing more business in Erie.
The Chamber of Commerce is on a new page of agressively marketing the potential of this area. Other groups are working hard on their niche of promoting the growth of this area. The Govenor supports the remodeling of the Tullio Center, hopefully the Downtown Master Plan will embrace the Parade Street area and include all the people in the area as the new growth continues.
The local politics seem to be working better towards a more regionalization attitude, this is enhanced by the State of Pa. and the Govenors support, because if the Airport agreement is any example, it looked as if the State of Pa. was going to intervene if the locals would not come together, that is evidence to me, that we now have Harrisburg’s attention. Gambling funds have generated so much money for the State of Pa. and this area, that I believe it is inevitable that FULL GAMING is on the way. Erie’s hotels, attractions, BAY FRONT, beaches, retail base, millions of tourists, easy road access and finally air access should be getting better, lead me toward that conclusion.
This is not the end of GROWTH but the beginning.
The road to progress will not be without many challanges, the City of Erie needs major infrastructure changes, the economic status of the City, as I understand, has challanges, and the counties and townships need to work closer together toward a common goal and that won’t happen overnight.
As the synergism continues and things happen more and more larger developers will be attracted, this is a great time to be doing the Master Planning during this tough economic times when financing and credit is difficult, but these cycle’s end and better times will come. Will Erie be ready? We are more ready now than we have been in the past and more people are aware of the potential of this area. The difference NOW from the PAST is that more people have a vested interest in our area than before. The casino people have invested over $300million dollars and continue to expand. Watch this new racing season where for the first time Presque Isle Downs have a FULL RACING SEASON with purses over $400,000 per day for FIVE MONTHS. The State of Pa. receives 55% of all gambling revenue, FOLLOW THE MONEY, Erie has been selected as the CHURCHILL DOWNS of Pa., we only have two other thoroughbred race tracks in the State, the other two are older than Presque Isle Downs, who by the way was selected as the RACINO OF THE YEAR 2007 after only ONE MONTH OF RACING.
For a City the size of Erie that is a lot of action and potential for future growth. The handwriting is on the wall…..and as another commentor mentioned….MISS IT AND MISS OUT……THIS IS A GREAT CITY ON A GREAT LAKE…WITH A GREAT LIFESTYLE……
Heavy D
April 24th, 2008 at 9:31 am
The good PR will not make a difference. The core competencies are what count for companies: namely low taxes and ease of doing business. Erie has very high taxes and debt.
Remember last year’s US Airways Magazine’s Erie spread from February 2007? I still have a copy because it upset me so much. Erie spent over $60,000 on it. Remember all the good press where Jake and company said it would put us on the map? I never heard anything more about it after March 2007. I’d be interested in how many web hits they got let alone how many businesses or people moved here because of it. Strange how they don’t gloat over that success.
I am in marketing & PR and all the great PR doesn’t do anything if your product can’t compete with its peers.
Remember the Segway “It” scooter or whatever it was? That got some of the best PR in the history of new product roll outs. Have you seen one lately or ever? Over time and under inspection the PR doesn’t matter; the product does.
Peter Panepento
April 24th, 2008 at 9:41 am
Heavy D:
You make some good points. We need more than just good marketing to make Erie more competitive. But Erie does have some attractive qualities and it has done a poor job in the past of marketing those qualities to the outside world. The key is finding the right audience.
Speaking of that, you don’t see many Segways in Erie, because the Erie market isn’t what the manufacturers are trying to hit. I see them all the time here in D.C. because they are most useful in congested cities with high pedestrian traffic. There is actually a Segway dealership a few blocks from my office.
The takeway: know your market and sell to that market.
Erie does offer some advantages to some companies. The key is identifying those firms and tailoring the message to those companies.
Jim Russell
April 24th, 2008 at 9:53 am
Erie will get some more attention from the global press this fall:
http://www.eastwestcenter.org/seminars-and-journalism-fellowships/journalism-fellowships/jefferson-fellowships
Heavy D
April 24th, 2008 at 10:25 am
Peter,
I agree Erie is a great place to live. I have lived in 9 states since I was 18, ( including all 4 US times zones)I love it here. it is a great place to raise a family. My problem is that they are trying to change the marketing as a way to get investment rather than change the underlying problems, like putting new paint on an old car.
I believe the business of America ( and Erie) is Business. The government should do things to encourage business and not compete with them. The convention center competes with Rainbow Gardens ( and the Civic Center and others). The new hotel (publicly funded) competes with all private hotels. This is a bad idea. The bay front has very limited space and the government took up a HUGE section of it by putting a library on it. That competes too.
I should have put together the Segway and you being in D.C.! But still it hasn’t lived up to any of the hype. Do you know anyone who actually owns one?
I just think the government says we should have something whether or not it is a good business idea. So they spend OUR tax dollars to do what no one in the private sector will. The cruise boat terminal comes to mind.
Peter Panepento
April 24th, 2008 at 11:18 am
Heavy D:
You are correct that state and local government need to create a more attractive environment for businesses. That should be a top priority for the community.
I also believe that opportunities exist to bring businesses to this region under existing conditions. And the attention over the recent days exposed some decision makers to Erie in new ways. The key is matching that up.
This wasn’t a post about government-funded projects. That is a different topic. There is a connection, for sure, but it distracts from the main point of my initial post — which was essentially that Erie has an opportunity to leverage this recent exposure. Part of doing that, as you rightly point out, is improving the overall business climate.
Finally, the Erie Regional Chamber isn’t a government agency. It is a member-supported nonprofit organization. If it chooses to spend its money on advertising, it must answer to its members — not the taxpayers.
I don’t know if the US Airways piece generated new business for Erie on its own. That is a question worth asking. But I also suspect that piece was as much about selling Erie as a tourism destination as it was a place to set up a business. Is that a worthwhile investment? You all can debate that.
I don’t have an answer without having more facts.
Heavy D
April 24th, 2008 at 11:33 am
Peter,
As is Erie has a lot to offer, I know lots of successful business people here. Obviously you believe that too or you wouldn’t spend the huge time you do on what has become my favorite Erie Blog.
I am just worried that the politicians squander opportunities and actually make things worse. I had the opportunity to leave the area for a much better paying job and declined it because Erie is good for me and my family.
and finally I can’t resist: The Regional Chamber does get some government funding!
Danny Lucas
April 24th, 2008 at 11:43 am
I should have put together the Segway and you being in D.C.! But still it hasn’t lived up to any of the hype. Do you know anyone who actually owns one?
—Heavy D
Well, I do not know one person who owns a locomotive.
They must not live up to their hype.
What absurd thinking.
“The good PR will not make a difference.”
along with
“I am in marketing & PR and all the great PR doesn’t do anything if your product can’t compete with its peers.”
—Heavy D (both)
Do you want to reconsider career choices there?
Good PR is the name of the game.
Do you think that manufacturers in Erie sat at their desk and threw a dart at Monterrey, Mexico….
OR, did Monterrey do PR second to none in Erie?
PR is everything!
Beanie Babies???
Who needs ‘em? Compete with peers??? Does not matter.
They were marketed extraordinarily well and people snapped them up. And, at their height of sales, the window of opportunity to buy more was closed intentionally. This was a brilliant marketing group.
This town has had its first decent wave of good PR in a lifetime of existing. Catching that wave is now critical.
To lament our shortcomings is to adopt the knowledge of Erie, PA as it existed 6 weeks ago.
I read of GE spending $2 billion in joint ventures in China and get concerned. Immelt comes to town and says the story of spending $2 billion in Erie. I’d like to delve into those numbers better, but my eyes were opened at the thought we get as much as all of China.
Look at this for PR:
“In 2002, GE spent $66 million promoting its corporate image, and none of that was on the Internet.”
Source: http://www.allbusiness.com/marketing-advertising/4218485-1.html
Voila! We have a 2 year backlog on locomotives. Coincidence?
Unless WE market US, we get to be cripples in the world market. That sign at the airport was brilliant. So was the one I saw on Liberty Street south of 12th Street:
Erie Appreciates Ceneral Electric. The Manufacturers Association picked the best day to place a full page ad in the Erie Times-News.
Credit do to them too. Has ANY other GE shareholder meeting anywhere ever had live blogging of the meeting?
THAT is a record of us, that is readily available to the world for future firms, to see our advantages….through wise PR efforts.
And this sentence is backwards:
“Erie does offer some advantages to some companies. The key is identifying those firms and tailoring the message to those companies.”
—Peter Panepento
I believe that Erie offers some advantage to ANY company in the world. The key is identifying those advantages, and linking each of the myriad advantages to any firm anywhere. In marketing, they used to call it “Find a Need and Fill It”. You can’t fill a need until you know impeccably well what you have to fill it with.
It is even easier with the Internet.
And, I’d like to see more direct mail marketing of Erie.
Look at the comments years ago from GE Credit Union marketing themselves. They are on page one under the title GOOD INGREDIENTS.
Here: http://www.allbusiness.com/marketing/strategic-marketing/1068153-1.html
It has been a fabulous month for Erie and the best is yet to come!
George Vietze
April 24th, 2008 at 1:02 pm
If you have a product or a service or a City that you are trying to market the information needs to be available to the market you are trying to reach.
I came to visit my son who moved to Erie from Scottsdale
and my first thought was Why, Erie? In his case his daughter was moving here and he wanted to be with his daughter and raise her in a community suitable for their lifestyle. Upon visiting Erie I had the same old perceptions of a Rust Belt, old mill town in a decclining economic cycle. When I drove down Peach Street and observed the amount of retail, in what I perceived as a small country town, I soon realized that people came from somewhere to justify that amount of retail. The casino and racetrack were under construction and I was curious why someone would invest $300 million dollars in a Rust Belt area in a declining cycle. I downloaded the feasibility study that the Convention Center submitted to the State of Pennsylvania and my eyes began to open.
The research I had done finding out about the sales tax laws that attracts retail buyers and that the casino/racetrack decided upon Erie and the partnership with the State of Pa. that shares 55% of the gambling revenue with the Casino gives the Casino owners the political support to further grow convinced me that the area was going to grow at least from the tourist side of the equation. Knowing that country race tracks do not make any money I further found out that the State of Pennsylvania in a effort to help the horse business and keep a viable Pennsylvania lifestyle alive decided that 12% of the gambling revenue be set aside to guarantee that the purse money to attract quality horses would always be available. To futher enhance Pennsylvania’s horse business the Pennsylvania Horse Breeders Association
changed the rules for qualifying for the large purses set aside for PA bred horses. It used to be that adjoining states could send horses here and breed in PA and then return to where they were based. The changes made were that the horses had to be in PA at least five months of the year to qualify as a PA bred horse, this was an effort to attract breeding and training facilities to Pennsylvania.
When a 200 acre farm became available that was 15 minutes from the Casino/Race track I purchased it for less than I would pay for a small townhouse in San Diego. How do I now convince other people to move to Erie, Pa. to enjoy what I believe to be a great opportunity for those people that enjoy the types of lifestyle and activities available in this area. The first thing I did was to develop a web site with all the information I found out about in my research. The next thing I did was to do local advertsing, advertising in the racing times, produced a brochure and now have the brochure at the Erie Airport with maybe six or so other brochures. Any other place I would be competing with 100 brochures, that’s another story. I also am making arrangements to place brochures at two visitors centers on route 79 and 90. When I found out about this web site it was a blessing because this vehicle could generate enough communication to others to help make things happen in Erie. You would be amazed how many people view this site from the media and political arena just to keep abreast of what information is being disseminated.
I promote the entire area because I know the whole is worth more than the sum of the parts, every city needs to be balanced and tourism is not the entire answer. This city does have a balanced base with manufacturing, medical,universities, tourism, gambling etc.,but at the time it was the least marketed City that I was aware of.
Things are slowly changing. The last post of the Jefferson Fellowship grant was HUGE, Honolulu, Phoenix,
Erie,Pa.,Cleveland, Ohio and Washington, D.C. were chosen as areas for media to do a comprehensive study on demographics by GLOBAL INTERESTS as well as national interests. This is another opportunity to expose and SPOTLIGHT ERIE to the world and by the time this study get rolling Erie will be a little further ahead towards a critical mass that will attract further growth. Hopefully someone local will apply for this grant and get to go to HONOLULU, someone has to go, might as well be someone who knows Erie and can represent us well.
You are correct, taxes and business friendly aspects do make a difference. In my case, I like the country lifestyle, and the fact that the real estate taxes on lots that qualify for over 10 acres for CLEAN AND GREEN
status have taxes below $200 per year and that natural gas is available and that one lot has free gas works also,
guess who gets the lot with the free gas? I have the vision to promote the business and manufacturing aspects of the entire area as well because I know a balanced community needs good paying jobs to be more viable as well as tourist and service business.
Peter mentioned follow up with our visitors, I did not see anyone taking names of visitors or companies to follow up with. I know in the real estate business when we have open houses we do not just pass out information because with out follow up there is not much business.
Waiting for people to call you is a long process, maybe our representatives will review and see if having someone taking the names of companies or individuals who have interest in providing that information and wanting follow up services. The Manufacturing Association said they had PLANS, the only PLANS I saw was a copy of their monthly magazine, maybe they can explain their plans or maybe they chose to keep them secret, but overall the event went well and the community was as ready as it ever was.
I get the impression that some people think that this is just PR baloney and does not do any good. I certainly do not share that opinion because I know that thoughts and communication of those thoughts manifest into action if those thoughts are focused upon. I have seen those changes take place and this site has been doing its share in making those changes manifest. If I did not think this site was doing any good towards moving growth along I would not spend my time writing (gramatical mistakes and all).
Global Erie needs to be exposed to more people, Peter, share with us your plans to GLOBALIZE or expand this site?
Heavy D
April 24th, 2008 at 3:04 pm
Danny,
I can’t really refute everything there is so much to go after but jobs moved to Monterrey, Mexico: they have cheap labor & low taxes! How much PR do you need for that? If I had a gas station that only charged $2 a gallon, when you saw the line would you say that I must have good PR?
The Segway was promised to replace cars when it came out and that in 10 years everyone would own one.
GE hasn’t moved its plant because the cost of the move for such huge heavy equipment would take decades to recover.
Skip the great PR I just want a quality product and good experience. Toyota just pasted GM in world car sales, Toyota doesn’t have the greatest ads but they have reliable well built cars, many of them are made by Americans. American car sales have suffered from perceived quality problems not bad PR problems.
We couldn’t get National Fuel to move here because we didn’t offer them enough money. In business if you want to sell more product you….have a sale! You lower the cost for consumer. I am sure even you have bought something on sale and not just because of the item’s PR & advertising.
Why doesn’t Erie have a sale? Oh we did! With LERTA and now guess what? We have less building since we changed LERTA.
Businesses are in business to make money not by fooled by good PR.
My company just spent (for us) big money on customer research. A market research company from Chicago, that counts Nike & McDonald’s as its clients, told us after focus groups and research that our customers want a good experience above all–no gimmicks, no clever ads –just treat them right when they come in.
I think we are actually in agreement on a lot of things. I am optimistic in Erie’s future. I am very glad we are discussing this because I believe there wasn’t enough discussion in the past of things that affect our future. I believe in Erie and the people who live here, I just don’t believe the politicians are up to the task of improving things without us holding them accountable and questioning everything they do.
Danny Lucas
April 24th, 2008 at 3:46 pm
You make my case very well for me, Heavy D.
“I can’t really refute everything there is so much to go after but jobs moved to Monterrey, Mexico: they have cheap labor & low taxes! How much PR do you need for that? If I had a gas station that only charged $2 a gallon, when you saw the line would you say that I must have good PR?”
Those are all advantages you state for the reason of move to Monterrey. They are accurate.
That brings the next question.
When were those advantages NOT true?
Mexico has always had these advantages, though productivity is a problem blooming there.
If Monterrey had all these advantages, why did not all companies flee South 50 years ago?
The PR campaign that Monterrey has done is stunning in bringing those advantages to light. It is not a gimmick of targeting slogans to companies. The advantages were always there.
You believe:
“GE hasn’t moved its plant because the cost of the move for such huge heavy equipment would take decades to recover.”
I believe:
GE has not moved its plant due to the very KEY to their existence that John Dineen outlined in the live blog at Ian Enterline’s spot last week—-our workers know how to build a choo-choo right. They pop em out every day.
Educated, trained, highly skilled, …
a workforce second to none.
The balance of our labor supply is rich in engineers and finance folks due to offshore and outsource by companies no longer here…..but the workers trying to stay.
A shift is going on at GE, now that they have the albatross of Jack Welch no more. GE had a fine apprenticeship program and developed leaders for ALL its activities right here.
It is hard to be number 1 or number 2 when you invest in the future by training and educating future labor talent and management. Welch wanted the bottom line (still does and made a fool out of himself with the “shoot Immelt” statement).
Immelt is “putting back” into the system in the School District and in-house training. Why? He thinks long term (investors do not). Returns for Immelt will be felt decades from now and retroactively, he will appear a genius.
A new facility could be built anywhere, to replace our century old place here, relatively cheap. Locomotives require substantial Logistics delivery and our rail/water outlets are perfect.
You worry about the politicians?
Good news for you Heavy D! Peter asks “What’s next?
Well, we are gonna have an election in the fall.
This time, for all the marbles.
If you thought PA (and Erie) got canoodled in the Primary, just wait! These candidates and media will be up and down PA, spending money and time in every nook and cranny.
We are, and will be, a swing state in elections.
And, if you just spent big money to have someone tell you that customers want a good experience, no gimmicks and the like, I am sorry to hear that.
It is pretty much what YOU want as a company.
It is pretty much a base objective in any company that wants to stay in business.
Ask for some money back there, Heavy D.
The most basic things are missing in business today.
The receptionist is gone.
Customers can “press 1 for English”, “press 2 for a life in hell”, “press 3 for 3 options more”,…..
Clerks are on the cell phone; not talking, but texting the thing in their pocket while ignoring your customer here.
This does not need amplified. We all know what is missing every time we shop.
As for shopping on sale,… and then Toyota is bigger than GM now, the two do not compute. Everyone does love a sale (tho lately, sales ARE gimmicks; two for one –after the price is doubled, etc).
Toyota is rising due to quality, not price.
The PR? Word of mouth!
Here is another followup that Manufacturer’s Assoc, the Erie Times-News, the Sign guys , TV, and everyone can do.
Get the names and addresses of all board members. They are online; Pete can post all of them here in about 10 seconds.
Write a Thank You card or note to every Board Member that attended from all those corporations. Send them thousands of them from folks high in the echelons and low and everyone in between in this town.
I can assure you that not one town in the past that catered to GE as we just did, had a community of citizens send them a “Thank You”, a personal note saying
“Erie Appreciates General Electric! We Thank YOU for being a part of them, and a part of us. Hope you enjoyed your visit. Are you sure you want to wait 19 more years to come back? We would love to have your presence sooner”.
Do it!
Peter Panepento
April 24th, 2008 at 3:50 pm
Heavy D:
You’ve articulated some great points here. And, in many ways, a lot of us are saying the same things.
The final point you make — treating people right when they come in — is really a key part of what has made the past few weeks so encouraging. There’s a sense that the community is being much more welcoming and open to those who are coming in.
Erie is doing some of the little things well that have been neglected in the past. More, obviously, needs to happen. But creating a welcoming environment for these guests is an important start.
Danny Lucas
April 24th, 2008 at 4:02 pm
Jim Berlin just posted the Immelt speech at the GE meeting.
Within that link, Board Introduction begins on page 3.
Senator Sam Nunn was here. Bunches more.
http://www.globalerie.com/jimberlin/?p=58
Jim has the names, and who they represent. Now, all we need is a post of addresses. Folks are more likely to participate when all this backwork is done first.
TJ
April 24th, 2008 at 7:49 pm
Heavy D:
Competition is a good thing. It spurs innovation.
Peter:
Your are dead right about the need to follow up. Follow up, or the lack thereof, is the number one reason for any sale/deal falling through. Give the ERCGP and the mayor’s office a good nudge in the right direction. The right people need to listen to the new contacts (prospects?) that have been made and listen to their needs. It sounds sooo obvious, but a plan should certainly be in place for this.
Jim
April 25th, 2008 at 6:47 am
At some point I would hope that the Erie community would at least get serious about looking into the reasons for the business departures that have happened, and instead of limiting their response to taking shots at the dear departed, put that energy in to developing community responses to address the needs identified.
For example, we need to change the assessment formula that robs credit equity. We need to find ways to increase private venture capital. We need to lower the cost of government, starting with a slowing of the rate of growth of that cost. We need to address the cost of energy, and the fact that the state, at this late date, still has not done anything about the electric rates set to explode in two years.
Just as important we need to change the perception of Erie as being a militant union town. In my travels I’ve had that reputation thrown in my face entirely too many times, some times accurately, but most as the result of a perception, generally bases upon some council resolution picked up by PoliticsPa, or GrassrootsPa, or some other statewide web site read by Pennsylvania business people.
I was in Philadelphia several times during Filippi’s court trial, and it was amazing to hear the negative comments towards the community, not Filippi, and then after the verdict came down, the laughs at the community expense. At one meeting, an employee of Merck was talking about the need to expand one of their facilities, and I mentioned our
Knowledge Park as a possibility, and was immediately hit with the militant union argument. Wouldn’t even discuss it, let alone consider it.
Over the years we’ve done too many things as a community to put negative opinions and perceptions into the heads of site selection consultants. Until we take real and positive actions to address those perceptions they will not change.
Heavy D
April 25th, 2008 at 7:52 am
TJ,
Competition is good thing, but NOT from the Government. I am the most raging capitalist you’ll find. But implying that I don’t like competition is ridicules.
Rainbow Gardens pays taxes and their own tax money is used to compete against them! The government’s job is to GOVERN not to run pet businesses that politicians want that never make money. The Civic Center has never made money despite years of government ( read) our money. We need less of this not more.
I’m done ranting for now. Thanks.
john morris
April 26th, 2008 at 12:46 pm
I know I have done this before but I think linking in to emerging online projects to link other cities in the region can be very valuable. Rust Belt Bloggers is one attemted initiative and another interesting project is called GLUE.
I can’t help feeling that there is a cause an effect cycle going on. Most print media in the rust belt is hyper local in nature which of course makes it hard to interest anyone outside a small city or town. Figuring out a way to let someone in Cleveland know about things going on in Pittsburgh is very hard and oportunities to market projects or products on a regional basis is very hard.
There was an interesting discussion about the idea of creating some kind of regional business paper on Rust Belt Bloggers.
Please support these projects and or and perhaps add to the mix. A lot of very cheap practical things can be done in terms of just linking websites but they rarely are. The result is that your town is held hostage to national media coverage.
Rust Belt Bloggers
GlueSpace.org
Danny makes the great point that the Wikipedia can be a great tool. It should be a goal to make sure your town has the most interesting, complete, up to date and informative entry possible.