Shapiro economic plan could spell good news for state competitiveness

Listen to this article

Gov. Josh Shapiro’s 10-year economic development strategy plan creates a clear path for growth for the state, head of Team PA said. 

Abby Smith, president of Team PA, a state nonprofit charged with accelerating Pennsylvania’s economy, who said she is excited the state has an economic plan after more than two decades, said, “To exceed, we need to know where we are headed.” 

Shapiro outlined the strategic plan in the Lehigh Valley on Jan. 30 to make Pennsylvania a leader in innovation and economic development.  It includes focusing on five key sectors: agriculture, energy, life sciences, manufacturing, and robotics and technology. 

To support economic growth in those sectors, the plan calls for reducing licensing times, opening doors of opportunity to all residents, innovating to win, and building vibrant and resilient regions. 

Outlining the five priority industries will allow regions and individuals to align their efforts, Smith said.  

“Pennsylvania has significant opportunities to strengthen its competitiveness, starting by getting clear about our priority sectors and the commonwealth’s strength,” Smith said. “This focus is energizing for local and regional partners from industry, the public sector, the network of economic development entities, academia, and labor to know that the state sees opportunities to accelerate in these key areas.”  

Workforce 

Identifying the key sectors also helps educators prepare a workforce necessary to support those sectors, Smith said. 

“The Pennsylvania Association of Career and Technical Administrators (PACTA) believe that all Pennsylvania students should have access to quality career and technical programming, and we work to connect business and industry partners with their future workforce,” said John T. Pulver, executive director, Pennsylvania Association of Career & Technical Administrators.  

“While it is well established that the commonwealth and the nation face workforce gaps, the need to address them is urgent,” he said. “Gov. Shapiro’s statewide plan for economic development will bridge the gaps by connecting Career and Technical Education (CTE) with in-demand careers. These connections will benefit in-demand industries and drive economic development in local communities.” 

However, Smith said currently, state schools attract a lot of students, but they don’t stay after graduation.  

“When there are good jobs, people will stay and the state is involved in supporting that,” Smith said. 

“Building a strong economy requires building a strong workforce, and we appreciate the Shapiro Administration’s focus on making sure that job seekers, workers, and employers have the resources they need to make Pennsylvania’s workforce the strongest in the nation,” said Carrie Amann, executive director, PA Workforce Development Association. 

Site Development 

Smith said investing in industrial and commercial sites will help attract business to the state and enable those that are here to grow. 

“When a business is looking to grow, more or establish a new facility, they have to know that what it needs is there,” she said. “Land development and power availability must be in place. Right now, we can’t even throw our hat in the ring because we don’t have established sites.” 

 Smith said the budget being proposed sounds like a big number, but it is not a big percentage of the total state budget, and the return will be huge. 

Shapiro, during his visit to Lehigh Valley, said the state is being outspent on economic development incentives with states like New York and Ohio leveraging as much as 16 times Pennsylvania’s total incentive spend.  

“If we are going to be competitive, we need sites that are ready and an economic tool kit to work with,” Smith said. 

While Pennsylvania spends much less than neighboring states on economic development, Smith said there is an advantage to seeing what is working in other states and using it here.  

“That’s building a foundation,” she said. 

Smith said Team PA did a strategic effort in 2022 with stakeholder feedback and quantitative input. The sectors the plan identifies came out strong, she said.  

“We need to be clear about where the best places are for growth and align our support for them,” she said. 

Licensing and permits 

Smith said Shapiro’s push to reduce the time it takes to get licenses and permits will help attract business too. 

“There has been a big emphasis on this because people need to know where they stand,” she said. “While still following the rules, we need to give people a clear path so they can prepare for business.” 

Life Sciences 

Smith said there is a big push for the life science sector in Lehigh Valley and the Philadelphia and Pittsburgh regions.  

“I’m pleased to see this. With our supply chain, I’d love to see this as an area of focus and how it grows with the attention of the governor,” she said.  

Smith said the industry has access to education, strong health care systems and proximity to major markets.  

“This all leads us to being a leader in the industry,” she said. “The time is ripe for growth in all the state’s regions.” 

“It’s not surprising to see life sciences, the field dedicated to harnessing the enormous potential of the natural world, identified as one of the sectors that will drive inclusive, sustainable growth in Pennsylvania in the years ahead,” said Michele Washko, president and CEO at Life Sciences Greenhouse Investments in Harrisburg.  

Agriculture  

Pennsylvania is also a leader in agriculture, Smith said.  

We have a lot of preserved farmland and the agriculture impact report outlines how significant that is,” she said. 

In addition, Smith said Pennsylvania is a leader in hardwood and mushroom production. And while the Midwest is strong in those areas, they don’t have access to education or markets like Pennsylvania does. 

“Pennsylvania’s Forest Products Industry values its close and long-standing partnership with the Pennsylvania Department of Agriculture and the Hardwoods Development Council,” said Matt Gabler, executive director, Pennsylvania Forest Products Association.  

“With a total economic impact exceeding $39 billion annually, forest products account for the single largest sector within Pennsylvania agriculture,” Gabler said. “The Shapiro Administration’s commitment to feature the forest products sector in its new comprehensive economic development strategy is great news for an industry that provides profound economic and environmental benefits across all of Pennsylvania’s 67 counties.” 

Smith said Pennsylvania is also doing a great job educating young farmers in new technologies, drawing them to the industry.  

“We excel at this,” she said. “Young farmers are drawn to what Pennsylvania is known for like organics and climate control.” 

Smith pointed out that the agriculture industry is not just based around the farm but encompasses industries like snack foods and candy. 

“The state can’t do this alone,” Smith said. “It will require working with businesses and organizations. We are greater working together.”