by Peter Panepento
By most accounts, Erie’s economy has held up fairly well in recent months when compared with other parts of the country.
The low real-estate prices — and the fact that Erie’s economy isn’t too reliant on financial services — has helped temper some of the shocks that are being felt elsewhere.
But the plunge in manufacturing in September has me concerned.
If manufacturing orders truly are trending down and if money is tightening up throughout the economy, Erie won’t be immune from this downturn for much longer.
Penn State Behrend economist Jim Kurre has said many times that Erie tends to follow the rest of the country into recessions — and then follow on the rebound, too.
If that pattern holds true this time around, tougher times could be coming.
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
October 5th, 2008 at 8:52 am
The plunge in manufacturing is just one more indicator that we are either already in a recession or certainly headed for slow economic times. The so called “bailout” probably mitigated a depression of sorts but will not stop the global slowdown that will effect everyone. In my opinion, Erie because of the reasons stated, and other reasons, is in as good a position as anyplace but will not be unaffected.
Economic times cycle and we most likely have another 2-3 years of slow economic times but I see Erie taking advantage of these times in a productive way, they are re-developing downtown/midtoown and implementing a Comprehensive Master Plan, mostly on grant funds.
This is a great use of this slow times, get ready for the up-cycle, re-develop where we can, master plan our community and county, position our community and policies to define and welcome quality growth. Our Bayfront could well be the engine that sparks the interest in Erie as the community of the future of NW Pennsylvania. Plan our community, put in place proper architectuaral controls, height and view limitations, land use criteria, environmental, historical, traffic and other criteria that will attract quality development when the time is ready.
Do not let your Bayfront be designed by the first developer who wants a high rise condo as high as they can go.,one the market in Erie is not the same as San Diego and the absorbtion would take years to sell thousands of condos, a properly planned Bayfront will create value as well as protect the beauty of our community. Coronado Island in San Diego has two huge hi-rises that defame that beautiful beach to this day, they are tall and huge and totally out of propertion to the classic Hotel Del Coronado a classic historical hotel that is the gem of the island. Do not let that happen to our Bayfront, it will be there forever!
I am happy that this forum has promoted the planning concept and the community has supported the Comprehensive Master Plan concept.
Slower economic times are coming, use this time well, it will create
a better quality of life and value for your community.
Jim
October 6th, 2008 at 6:13 am
Unfortunately, in addition to economic downturns hitting Erie later, they also hit harder when they do, and when the recover does come, later, it comes lighter. In other words we tend to get hit harder and recover less than other places. The only positive aspect, if you can call it that, is that in getting hit later, we have time to get out. This has been replaced numerous times since the 1950’s. We end up with a smaller economy, higher cost of government and a larger wage gap when the cycle is completed.
While the planning that George talks about it vital, because we have to change, and we can’t do that effectively without planning, we also have to address the costs of doing business here, and make it more attractive to do business here, and that means more cooperative efforts between the local economy and the state. As we currently have our state house members and senator up for reelection this year, its time to start asking them when they are going to get serious about making Pennsylvania more business friendly, and coordinating with local governments to reduce the cost of government on business. Business simply won’t locate in a place they can’t afford to operate.
In Erie, one of our largest service products is medicine, and they are getting more stressed by the month. High levels of medical assistance, low reimbursements and high malpractice make it extremely difficult to recruit physicians to the Erie area. We need to be pushing for action to change that dynamic. We have the hospitals, medical education, and geographic location to grow this industry in the service sector.
Manufacturing is indeed going through a difficult time. I work in manufacturing. Don’t write it off. I often get the feeling that because manufacturing has taken so many hits in the last fifty years, the Erie area has essentially written them off, thinking there is nothing they can do. I disagree with that. There will always be manufacturing opportunities. We just have to adopt an attitude that we want those opportunities, and make those offering them feel welcome coming here. We need to value the job opportunities manufacturing provides. We don’t do that. The city of Erie has a reputation of being antagonistic towards manufacturing. That must change. We simply cannot afford to be viewed as antagonistic towards any aspect of our economy. City council needs to get that message. Comments like Cappy’s response to Lord Corporation concerns are not helpful.
In this current economic crises on Wall Street, it is easy to paint all business with the same brush. We have to refrain from doing that. We have to put real value and appreciate those willing to take risks, providing employment opportunity for others.