By BF Editors
From the November/December 2024 Issue
Business Facilities: Please tell us about the status of economic development in Pennsylvania as 2024 comes to a close and 2025 is approaching.
Aaron Pitts: In short, the state has a great deal of momentum right now. This year, Pennsylvania passing its ambitious bipartisan budget includes investments to fuel the first economic development strategy that we’ve had in decades. This is an important as a strategy that outlines a set of priorities and a set of goals for the Commonwealth. And now we are backing it up with action.
For instance, Governor Shapiro’s administration is speeding up government, eliminating backlogs and slashing red tape. The average processing time for business licenses has gone from eight weeks to two days, for example.
And the legislature has backed this economic development strategy by investing in our already strong business environment to make it amongst the most competitive in the nation. We are on the path to cutting corporate net income tax in half.
And, just last year, the bipartisan budget approved a $400 million PA SITES program to make sure the state has site inventory for the businesses that want to expand here or relocate here. The program also invested $20 million in small business and commercial corridors across the state.
And, at the Pennsylvania Department of Community & Economic Development, we’re investing in our team. And we are focused on expanding our statewide partnership to more effectively and efficiently engage with the businesses are already here. And, then those that seek to come here.
BF: What are target or growth industries for Pennsylvania?
Pitts: There are five industries targeted in the state, and these are a mix of industries that are already large employer bases here. These is manufacturing which is established across the state. Agribusiness and food processing is another that is a strong sector in Pennsylvania.
And then there are growth industries — life sciences; technology and robotics; and energy. Pennsylvania is replete with energy resources.
These are a mix of what is already strong in the state and where we have an advantage to compete. And, then there are the industries that we know are going to grow and we are positioning ourselves to win there.
BF: Why is the Pennsylvania workforce an asset to business?
Pitts: Pennsylvania’s education system is the envy of the nation. It’s the fifth largest state in the U.S., and the attainment levels are impressive. If there’s one thing that Pennsylvania has demonstrated through the course of history is that the people here value education. And if you’re running a business, it starts and ends with the people helping you run that business. The workforce here is a great asset that has contributed to success in the state. We will be leveraging that asset much more.
BF: Why is the state’s location and infrastructure advantageous to companies?
Pitts: First, let’s consider the natural resource assets that Pennsylvania boasts, including the largest hardwood forest in the U.S. The middle of the state is replete with natural resources, underground oil, gas on the ground. We also have a great river system.
There are large cities, like Philadelphia and Pittsburgh, and many smaller cities from there, and then into the suburbs. On the west side of Pennsylvania, there is Pittsburgh and all of the industrial development supporting the region. That area’s river system is just one great asset to moving products to and from market.
And considering Pennsylvania’s Mid-Atlantic location, the state’s infrastructure allows products to be moved up and down the eastern seaboard. On the west side of state, infrastructure allows product to get in and out through the waterway system, out to Europe and other global locations.
And, there is the extensive road system that continues to be developed here in the state. There are also railway advantages.
BF: Why is Pennsylvania’s 20-year economic development strategy, released in early 2024, a boon for the state and businesses there?
Pitts: We want to be a Top 10 state for business. Proactively moving toward that goal is behind the strategy. This includes slashing red tape, implementing a disciplined process through which we are able to know the companies that are here, know that we want to earn their next investment.
And we have invested in site readiness. There need to be sites ready in order for a company with that type of need to choose the state. We know that states compete heavily for business and offer business incentives. Pennsylvania will have the combination of having a great business environment, plus incentives, and now ready sites. That is equipping us to attract the types of deals that the state has not focused on historically.
So, a main focus for our team is to engage with companies, telling our story, having ready sites, and great incentives.
The PA SITES program has the $400 million in funding, with a pilot program behind it. The pilot program was significantly oversubscribed with interest of developers of properties that want to finish the last mile of development. The program seeks to find those places (those sites) across the Commonwealth — and to competitively score them and prepare the sites for companies.
We want to tell companies we have right place with the right infrastructure ready for their needs.
BF: Why is quality of life in the state of Pennsylvania desirable?
Pitts: For one, Pennsylvania has world-class cities. Some of the original cities in America are here, founded by industrialists and the philanthropy and all the arts and culture that goes with that.
For some people, that is a very appealing environment. We also have suburbs and rural communities.
Pennsylvania has a diversity of environments, so there is something for everyone.
BF: Why is the future bright for business in Pennsylvania?
Pennsylvania Launches Permit Fast Track Program
PA Permit Fast Track Program is nation’s first project-based permitting fast track program for economic development, infrastructure projects. Plus, Hranec expands in Fayette County. Read more…
Pitts: The state is creating a great business operating environment. And it is a great place to live. Our PA Business team within the Department of Community and Economic Development has created a strategy to build upon all of the positive attributes discussed here. It is incumbent upon us to identify the right opportunity and put each company with which we interact with the right place, and then have that company interact with the network of existing businesses that are here. Through these efforts, businesses will be strengthened and so will the Pennsylvania economy by virtue of those actions.
