Dean Barber

What Shop Class Did for Me

In Corporate Site Selection and Economic Development on August 14, 2018 at 12:47 pm

Among us boys, Wilhelm Wolfskill gained immediate cult-hero status with a single utterance.

“Willie,” as we called him behind his back, was our “shop class” teacher at South Lebanon Middle School in Lebanon, Pa. I’m guessing the year was 1968 or 1969, and I was in either in seventh or eighth grade.

Willie was showing us the proper way to use a mallet and chisel, and we were gathered around him when he said something in his heavy German accent that will remain with me for the rest of my life.

“Ach du Lieber, who let der schmelly von?” (Translation: Good heavens, who farted?)

Even my father cracked up when he heard that.

In addition to that memorable quote, I have something else that has remained with me from Willie’s shop class – a small, wooden foot bench that I made 50 years ago. It’s not much to look at, then or now.

But it meant a lot to me then to a 13-year-old boy who was much confused about the world. And it means a lot to me today as a 63-year-old man who still gets much confused on occasion. It’s why I have kept it.

Goggles and Aprons

Back then, shops class was formally known as “industrial arts,” and it was mandatory for all boys. (There were no girls in class.) I remember the goggles and the dark blue aprons that we had to wear and how the loud shrieking table saw absolutely terrified me.

I imagined losing control of a piece of wood while guiding it through the circular saw blade and the board snapping back and smashing into my face. I was much more relaxed with a handsaw.

If memory serves me right, my first shop class was strictly woodworking, but I remember being introduced to welding in school (no aptitude there), so I may have had a second shop class along the way. Mind you, this was middle school, before high school.

There was a degree of self-satisfaction in making my simple little foot bench. More importantly, shop class gave me the opportunity to figure out for myself that I was not nearly as mechanically inclined as my father, who was a metallurgical engineer. That realization would help me later make career choices.

Other classmates built things that made my little foot bench look like child’s play. They, too, probably made career choices, at least partially influenced by what they learned about themselves and their abilities in shop class. In that regard, shop class served us all well.

Finding the Good and the Bad

Today in my role as a consultant to economic development organizations and companies, it pleases me greatly when I come across communities that have established robust vocational education and training programs, both at the high school level and in local community colleges.

In my book, that’s always a good thing because it ensures a pipeline of talent for local employer, but it also usually indicates a willingness of educators and local employers to work together.

Likewise, I have been to communities where there is a profound lack of effort or resources devoted to what educators now call “career technical education” or CTE. It may have once been offered, but all such efforts have been seriously eroded or abandoned.

Not long ago, I was in town that had a community college, but all the industrial trades were taught at a sister campus in another town 80 miles away. Lucky kids living there.

Then there was that community college offering courses in aircraft maintenance, which was fine except that there was virtually no aviation presence in the community. The nearest commercial airport was more than 100 miles away.

The head economic developer in another community once told me that he had never had a sit-down meeting with the president of the local community college, that they in fact had no working relationship and barely knew each other.

I can remember a plant manager of metal fabrication plant, one of the largest employers in this town, telling me that while he thought the local high school was offering some fairly good vocational training, the community college was offering none. The exception was cosmetology. There were classes being offered in that.

“They are of no help to us. None whatsoever,” the plant manager said.

Recently, I was in a city with a population of 100,000, where there was no community college at all. I thought that was particularly noteworthy, because the city had a long legacy of manufacturing, a sector that still resonates within the local economy.

Incredibly, that same city had four four-year colleges. When I asked about vocational education, the answers were vague and none too encouraging.

A Caste System in the Making

Even as a kid, I could detect a caste system in place. There was the “academic” path for those of us who aspired to go onto college. It’s what our parents and guidance counselors told us we should do.

Then there was the vocational pathway, which we in the academic track derisively referred to as “vo-tech.” The implication was that vo-tech kids were not smart enough to go to college. They had to go to work.

Of course, it was a stupid and wrong way of thinking, but it was indoctrinated into us. I believe that line of thinking is still pervasive today, although many would deny it. (I resisted somewhat, working in a grey-iron foundry for a year after high school before going to college.)

Looking back, I suspect that many of the vo-tech boys actually had a pretty good idea what they wanted to do. They wanted to be machinists, carpenters, electricians, plumbers and such — whereas most of us on the academic track had not a clue.

My own career path became clear after reading “All the President’s Men” in 1974. Written by Carl Bernstein and Bob Woodward, two reporters at The Washington Post who investigated the first Watergate break-in and ensuing scandal, the book cemented the idea that I would pursue a career in journalism.

As it turned out, journalism school at the University of Wisconsin was largely vocational in nature, which was a good thing. And there were no screaming circular saws.

These Other Capabilities

Baby Boomers with sophisticated machine skills, people of my age, are now retiring in droves. At the same time, many parents, teachers and guidance counselors continue to discourage young people from pursuing careers in the industrial trades, just as they did when I was a boy.

Over the years, we have created an education system where the emphasis is largely on improving standardized test scores and getting students ready for four-year colleges, while building actual job skills is given short shrift. When you think about it, we are so dependent of the people who make and repair and drive and do the sometimes dirty jobs that we cannot or will not do.

“The work of electricians, builders, plumbers, chefs, paramedics, carpenters, mechanics, engineers, security staff, and all the rest is absolutely vital to the quality of each of our lives,” wrote Ken Robinson, Ph.D, wrote in his book “Creative Schools, The Element, Finding Your Element and Out of Our Minds.”

 “Yet the demands of academic testing mean that schools often aren’t able to focus on these other capabilities.”

The No. 1 Business Problem Today

Manufacturers have been telling us for some time now that our schools are not turning out enough graduates with the math and science proficiency necessary to operate and repair computer-controlled factory equipment. It’s about time we listen.

While there are some indications that CTE may finally be gaining new life (last month President Donald Trump signed an executive order aimed at improving vocational education and job training), one of the most important business stories of 2018 is the difficulty that employers are having in finding qualified employees to fill a record 6.7 million job openings.

“Business’ number one problem is finding qualified workers. At the current pace of job growth, if sustained, this problem is set to get much worse,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement. “These labor shortages will only intensify across all industries and company sizes.”

It Takes Two to Tango

The only way that I see for us to meet this problem head on is through creating partnerships between business and education. Mind you, that is far easier said than done. That’s because educators and business people, particularly manufacturers, tend to speak past each other in different tribal languages.

For a meaningful partnership to happen, companies must assess their human resources needs in terms of numbers and what skill sets they want future employees to have and communicate that information to educators. It may also entail employers donating equipment, personnel and money to get vocational training programs at schools off the ground.

For their part, educators need to listen, ask questions and truly be responsive in trying to determine the needs of the companies. It may also entail schools hiring additional personnel with backgrounds in the trades to do the teaching.

The point is that if both sides talk, listen and do their respective agreed-upon parts, then real partnerships can be formed. It just takes two to tango.

And the truth is that I have seen this beautiful dance in multiple places. Northwest Georgia is just one example. The Georgia Northwestern Technical College, serving nine counties from six campuses, offers credit and noncredit programs designed to meet the needs of individual companies and consortia of companies with similar needs.

The school seeks out these partnerships. It’s a lovely dance when it happens and it can happen in more places if we only try to make it so. Where there is a will, there is a way.

I’ll see you down the road.

Dean Barber is the principal of Barber Business Advisors, LLC, an economic development and corporate location consulting firm based in Dallas. Dean is available as a keynote speaker and can be reached at dbarber@barberadvisors.com. Visit us at www.barberadvisors.com to learn more.

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What Economic Developers Should Do

In Corporate Site Selection and Economic Development on August 5, 2018 at 8:43 pm

The email was labeled “Question.”

It came from an old friend, who is not so old as he is younger than me. My friend was also once my boss when we worked together at the Economic Development Partnership of Alabama back in the 1990s.

Don Erwin’s email was curious by the fact that he is one very knowledgeable and experienced economic developer. He gave me permission to share his email.

Economic developers are sometimes criticized for confusing “activity” with results. I think, most of the time, they clearly know the difference, but their challenge is how to produce results.

”Trade shows? OK. Visit site consultants? OK. Have a nice website? OK. Woo the state economic developers? OK. But what beyond that? The employees at Mercedes-Benz in Alabama clearly know what they need to do to turn out 1,200 cars/day, but it is much less clear for economic developers what to do. Any thoughts you have about this are appreciated. – Don”

For the uninitiated, economic developers are charged with creating jobs and investment in local economies, although they actually do neither. But that is how they are typically judged. They are part teacher, sales person, cheerleader and evangelist. They are, by and large, interesting people.

First, Get Out of Bed

What to do. We face that question every morning when we get out of bed. Sometimes it only hits me with my first cup of coffee.

In his email, Don mentioned some strategies pertaining to business attraction. He also mentioned “results.” Two things come to mind. First, I have come to realize over the years that there’s much more to economic development than business attraction. Second, focusing on results is, I hate to use this cliche, putting the cart before the horse. I will explain.

Maybe 18 or 20 years ago, I took an IEDC class taught by Laith Wardi, who founded a company in 1996 called ExecutivePulse. That class, more so than any other, revealed to me another facet of economic development other than “buffalo hunting,” which was my job at EDPA. (Never mind that I actually own a long-barreled .45-70 Sharps rifle.)

As most jobs are created by existing industry, I now know that business retention and expansion should be a primary focus for most economic development organizations. Laith preached that gospel and the heavens parted for me.

Later, he introduced me to Erik Collins in Montgomery County, Ohio. Erik puts the theory of BR&E into practice. I am so glad to have befriended these two men.

The Importance of Startups

Over the years I also came to understand the importance of entrepreneurial growth, that is, business startups to a local economy. We know that many large businesses have very humble beginnings, having been started in people’s garages. Apple, Disney and Harley Davidson come to mind. I think it is important to remember that.

Research from the Kauffman Foundation indicates that new and young companies are not only a primary source of job creation in the American economy but also inject competition into markets and spur innovation.

I saw that firsthand during a recent trip to Erie, Pennsylvania, where I spent three days doing what was essentially a mini-SWOT. The trip was made possible largely through the efforts of Laith, who lives in Erie.

No doubt my best meeting during my time in Erie was meeting with entrepreneurs, many of whom I would describe as “techies”, at a 24/7/365 incubator called Radius CoWork in an office building downtown.

Forget that most business startups will fail, successful entrepreneurs rightly figure, “damn the statistics, full speed ahead.” The entrepreneurs that I met in Erie were that gung-ho bunch.

Debunking the Myths

There are many myths about entrepreneurship. One is that most successful entrepreneurs are young. We think of Bill Gates, Steve Jobs, and Mark Zuckerberg, who were in their early twenties when they launched what would become world-changing companies. Those are great business stories.

But research shows that the average age of a successful startup founder is 45. (I started BBA when I was 50.) The truth is that the average entrepreneur has worked in business for years before starting their own business. Despite that, many venture capitalists operate under the mistaken belief that youth is the elixir of successful entrepreneurship.

Another myth is that small business is the employment engine of the economy. As the Kauffman Foundation points out, when it comes to job creation, it is not the size of the business that matters as much as it is the age.

Growing the Growers

So back to Don’s question, as to what economic developers should do. If we know that new businesses create jobs, then shouldn’t we be trying to grow the growers?

There are thousands of early stage entrepreneurship support programs across the U.S. Generally, they fall into four categories — accelerators, incubators and coworking spaces (what I saw at Radius CoWork in Erie), events and competitions, and formal degree or educational programs.

I’m not sure if you can actually teach people to become entrepreneurs, but you can educate them and give them tools that will help them grow their businesses and become better at what they do.

To be sure, there is overlap between these different types of programs out there. I tend to like accelerators, which work with startups for usually three or four months. In addition to guidance, they also offer capital. In exchange, accelerators usually get an equity position in the startup company.

There are four factors that make accelerators distinct from the other models, according to Susan Cohen, a professor of entrepreneurship at the University of Richmond. They are fixed-term, cohort-based, mentor-driven, and culminate in a graduation or demo day.

All the Above

The more you look at it, the more you begin to understand that economic development is a very broad field with lots of moving parts. It is why there are now specialists in the fields of business attraction, business retention and expansion and business startups.

Back in 2012, President Barack Obama spoke of “an all-of-the-above” energy strategy for the 21st century. He was referring to developing and using a combination of various resources to meet energy needs that included nonrenewable resources (coal, crude oil, and natural gas) and renewable resources (solar, wind, nuclear power, hydroelectric power, and biofuels).

Economic development organizations should take heed and develop their own “all-of-the-above” strategy. Economic development is not only about business recruitment. Nor is it only about BR&E or business startups. It truly is about all of the above.

Finally, this all-of-the-above approach requires that economic developers truly become students of business. Surprisingly, I find many who are not.

One Bite at a Time

Don attended the University of Alabama and is a big fan of that school’s football program. Coach Nick Saban, who has won five national championships in his 11 years at Alabama, is a firm believer in focusing on daily progress and not the end results.

Do your work, do it well, and when you find success, do it again and always strive for continual improvement. This is the Toyota Way (kaizen) and the embodiment of Saban’s “process.”

How do you eat an elephant? One bite at a time. Economic development is the elephant. It is a massively big field. No person or organization can master it all, we can only strive to get better. (Saban teams don’t win championships every year.)

That is precisely what economic developers can and should do – work on improving the business environment of their communities and how they do their jobs. If they focus every day on progress, the results, the investment and job creation, will follow.

This is what I told community stakeholders in Erie. This is what I would tell community stakeholders anywhere.

We’ll End with Crass Self Promotion

I am somewhat reluctant to tell you that we can offer communities an affordable “mini-SWOT,” similar to what we did in Erie. It just so happened that Erie wanted me to not only to give my impressions to community stakeholders, but also make my views public by writing the blog.

It was a gutsy move on their part. Certainly, it has sparked debate within the community, which is a good thing.

Some communities, however, might not want to go the “public” route, but would prefer a report made available to stakeholders only. In other words, I wouldn’t write a blog for the world to read.

However, we would still provide that hard look, pointing out the good and the not so good. (All communities have strengths and weaknesses.) Sometimes you need that outside perspective to bring about change.

Of course, we can also offer our full-fledged BBA Action Formula which takes a deeper dive and offers more than an assessment or any strategic plan.

Enough on that. I’ll see you down the road.

Dean Barber is the principal of Barber Business Advisors, LLC, an economic development and corporate location consulting firm based in Dallas. Dean is available as a keynote speaker and can be reached at dbarber@barberadvisors.com. Visit us at www.barberadvisors.com to learn more.

Erie on the Edge

In Corporate Site Selection and Economic Development on July 29, 2018 at 9:14 pm

The Texan accepted his job transfer to Erie, Pa., knowing it was the best way to rise in the company ranks. He arrived in late spring.

Soon thereafter he found a nice and surprisingly affordable house in Millcreek Township, just four miles west of the city. As his neighborhood was near Presque Isle State Park, a seven-mile long peninsula jutting out into Lake Erie, he made a habit of running in the park after work.

He found the views of the Presque Isle Bay stunning. And the summers were far more tolerable than back in Texas.

He took up fishing and began learning the ways of walleye, perch, smallmouth bass, and steelhead trout. He was amazed by the clarity of Lake Erie’s water.

But winter was coming and with it the famous “lake effect” snow. Just got to buck up, he told himself. Texans got grit.

The first snow came in November during the night. The next morning, he was up early in his pajamas and slippers, staring outside at the blanket of whiteness. Maybe I’ll get to work today, he thought. Maybe not. He shuffled back into the kitchen for another cup of coffee. The idea of a leisure morning at home was appealing.

But then he heard scraping sounds outside. Looking out his front window, he saw his neighbors, some in suits, digging out their driveways with snow shovels. Some were already in their vehicles backing out into the street. “Damn, these people got grit.”

Minutes later, he too, was out in his driveway with shovel in hand. And he got to work on time.

My Mission

Full disclosure. I was hired by Emerge 2040, a group funded by public and private monies, to come to Erie and give my assessment in terms of economic development. They wanted me not only to speak to stakeholders about my impressions, but also write about them in my blog.

I said I would, so long as everyone understood that I would tell it like I saw it. You won’t be getting a “puff” piece from me. They agreed, and I made the trip last week, arriving on a Sunday, leaving on a Wednesday. Not a lot of time, to be sure, but enough time to get a feel for the place.

Also, it should be noted that I did not see much of Erie County. I did travel about 20 miles northeast of the city to see some of the 12,000 acres of vineyards within the county. Many are within eye-shot of Lake Erie.

During my stay, I met a lot of very nice people, saw and heard a lot of things. Some good, some not so good. Being that I am a glass half-full kind of guy, let’s start with the good.

Almost an Island, Almost a Dump

Erie, Pennsylvania’s only Great Lakes port, is located on the southeast shore of Lake Erie in a natural bay formed and sheltered by the aforementioned Presque Isle Peninsula, a recurving sand spit. Presque Isle means “almost an island” in French, and the peninsula has been a real island at least four times since 1819 when waves have broken through the neck to isolate the main section of the spit.

Not too long ago, Erie’s bayfront was a rather nasty place. It was used solely for industrial purposes and as a dumping ground. People would throw their junk — including old refrigerators and stoves — from the top of a bluff into a ravine below. Industrial waste and sewage found their way into the bay.

Said one long-time resident, “The bay area had a kind of a funky smell back then.”

Transforming the Bayfront

That all began to change with water (cleanup) remediation in the 1980s, the building of the Bayfront Parkway and Bicentennial Tower in the 1990s, followed by the $44 million, 145,000-square-foot Bayfront Convention Center in 2007.

Surrounded by water on three sides, the Center spawned a $60 million, 200-room Sheraton Erie Bayfront Hotel in 2008, and a $54 million, 192-room Courtyard Marriott Erie Bayfront Hotel in 2016. Both hotels are waterfront properties that connect to the convention center.

And more commercial development is in the works for the bayfront. An eight-story Hampton Inn & Suites is now under construction, part of $150 million development that will likely include (more) restaurants, offices, residential units, an indoor market, parking, bicycle trails, parks and green space.

Tourism has become a major and relatively new industry in Erie, employing 16,000 during the summer, 12,000 in the winter, with about $1 billion in direct visitor spending. The jobs and the development happening are all due to the transformation of the bayfront.

Every evening I sat outside on the patio of my hotel and watched the sunsets over the bay. During those tranquil moments, I also came to appreciate Erie Brewing Company’s Railbender Ale as a regional asset. A community without craft beer is not entirely civilized in my eyes.

However, the bay is not just a recreational playground for boaters and fishermen. The Port of Erie is a working industrial port serving ocean-going freighters that traverse the Great Lakes and the Saint Lawrence Seaway. Donjon Shipbuilding and Repair, capable of dry docking 1,000-foot vessels, occupies a 44-acre site at the port with 4,000 feet of pier space.

Focusing on Downtown

From the bayfront, it’s only a 10-minute walk up State Street to Erie’s downtown which sits on a higher elevation. There I saw a 346,000-square-foot office building under construction. It is an expansion of the corporate headquarters for Erie Insurance, a home-grown, publicly-held company that provides property and casualty insurance.

Erie Insurance, the dominant employer and force in the community with 3,500 workers, has been has been acquiring and developing properties to enlarge its campus footprint in the downtown area.

About 1,200 employees will work in the new building, 500 existing employees with another 700 to be hired. CEO Timothy NeCastro says the company will likely create 1,000 new jobs over the next several years.

NeCastro is also the chairman of the newly formed Erie Downtown Development Corp. Modeled on the Cincinnati Center City Development Corp., the EDDC aims to use money from local investors to undertake large-scale projects. To date, more than $25 million has gone into the EDDC’s Erie Equity Fund for downtown redevelopment.

The EDDC has engaged the Urban Land Institute, based in Washington, D.C., to make land-use recommendations on a street-by-street, corner-by-corner basis. One key goal is to establish housing and amenities downtown that will make it attractive to young professionals, like those Erie Insurance plans to hire.

Of course, the EDDC is an evolving story, but it’s good to see local businesses investing in the downtown core. That’s putting your money where your mouth is. That’s a vote of confidence.

The Little Engine That Could

The best business stories are of home-grown companies doing the “impossible.” The Lake Erie College of Osteopathic Medicine (LECOM), sitting on a 53-acre campus, is such a story.

When sister and brother Silvia and John Ferretti launched LECOM in 1992, self-preservation was the motivating factor. “The best way to survive was to train the physicians we needed,” said John Ferretti, president LECOM Health.

At the time, it was the first newly-created medical school in the country in 25 years, Ferretti said. LECOM’s medical school is now the largest in the U.S., with campuses in Erie, Greensburg and Bradenton, Fla., graduating more than 530 students per year. (The average medical school graduates about 100 students per year.)

LECOM has also become one of the larger employers in Erie County with more than 2,000 employees, with 3,500 indirect jobs created. The financial impact to the community was estimated at $186.million in 2016. Nationwide, it’s more than $1 billion.

In addition to the medical school, LECOM also confers degrees in pharmacy, dentistry, health services administration, and biomedical sciences.

LECOM was the little engine that could. But today, it is not so little and is making a big impact on the Erie area.

Healthcare and Education Grows

In some ways, Erie resembles a mini-Pittsburgh in that the healthcare sector has become a dominant employer. The area has seven hospitals. Of a labor force of 128,000, about 29,000 people are employed in education and health services, making it the largest job sector.

In the fourth quarter of 2017, the Pennsylvania Department of Labor & Industry identified UPMC Hamot and Saint Vincent Health Center as the No. 3 and No. 4 largest employers respectively in Erie County. UPMC Hamot, a 424-bed hospital, employs about 3,300 while Saint Vincent employs about 3,000 people.

Erie County has four universities — Penn State Behrend, Gannon, Mercyhurst and Edinboro — which combined employ about 3,000. During my three days in Erie, I visited Mercyhurst University, where work underway on a $1 million cybersecurity lab. Made possible by a donation from the Cleveland-based tech company MCPc, the lab will be part of an expansion of Mercyhurst’s cybersecurity program.

To say that cybersecurity is a growth industry is an understatement. Watch for spinoff companies in the community as a result of the Mercyhurst program. This is another stay-tuned story.

Place Your Bets

Without a doubt, my most positive and inspirational meeting was at Radius CoWork, a 24/7/365 facility full of tech talent, designers, and young entrepreneurs located in an older office building downtown. It is “where Erie’s freelancers, startups, & remote workers share a community driven space to get work done and have fun doing it.”

Again, these were young entrepreneurs, mostly “techies,” who embody the attitude of “lead, follow, or get the hell out of the way.” They are committed to the city’s future and making their businesses go. Older people, including yours truly, could actually learn from them.

A common theme to their remarks was that Erie was big enough to offer the cultural amenities that they liked, but small enough to not get lost in the crowd. It was easier to make friends and connections here, and the cost of living and doing business was much lower than big cities where tech reigns.

These young people are the next generation of Erie’s business leadership. I would bet on them in a big way.

Not All is Peaches and Cream

But just as there were many good things that I saw and picked up on Erie, there are certain weaknesses, even bad things, that must be addressed.

The good news is that all of these things are fixable. It’s not all peaches and cream in Erie, which is an understatement, but improvements can and will come if the focus is on daily progress rather than end results.

Erie sits in the heart of what has been pejoratively called the “Rust Belt” but rebranded of late as the “Trust Belt.” This region, more so than any part of the country, took a beating with the loss of millions of manufacturing jobs and only now is recovering in the aftermath.

That said, manufacturing still plays a prominent part in Erie’s economy, accounting for 22 percent of the local GDP, but its largest manufacturing employer, General Electric, continues to lose jobs in dribs and drabs. GE employment in Erie now stands at about 2,500, whereas back in the 1950s, it hovered between 15,000 and 20,000.

With the loss of manufacturing jobs has come a loss in population. As of July 1, 2017, the city’s population was estimated to be 97,369, down from 98,289 a year earlier, a decline of about 1 percent. But the big takeaway is that Erie’s population has been falling for the past five decades, from a high of 138,000 in 1960.

Jobs are what draw people to a city and if the jobs aren’t there, well, they go elsewhere. It boils down to economic opportunity, which has historically been a downward trajectory in Erie for a long, long time.

That has left its mark on the people. I think it would be too much to call it self-loathing, but several residents referred to a “scarcity mindset,” characterized by a loss of confidence and resentment.

You Blew It

I wrote a story for Site Selection Magazine, published in May of 2011, detailing the intricacies of General Electric selecting Fort Worth, Texas, for a new $100 million plant to manufacture locomotives. Prior to that announcement, all GE locomotives had been built in Erie, and I contend the same would hold true today were it not for the stubborn refusal of a union to make concessions to GE management.

The truth is the United Electrical, Radio and Machine Workers of America dug in its heals and company called their hand. Those great manufacturing jobs went to Fort Worth, because of a 1950s mentality and when the country was still reeling from the Great Recession. Last year, GE said it would move all locomotive production from Erie to Fort Worth. So there you go.

“You blew it,” I said in a meeting with Erie officials last week. I could detect physical discomfort, squirming, in the room.

Sadly, certain public officials still cater and court organized labor. Coming off the heels of other Great Lake states, Michigan, Indiana and Wisconsin, becoming right to work states, I would tell them to wake up and smell the coffee. This is not your father’s manufacturing climate anymore and clinging to the past will not impress companies that would consider Erie and the surrounding area for corporate investment.

Just saying.

Connecting People to Resources

It is heartening to know that Erie celebrates diversity and welcomes immigrants trying to build a new life in this country. The American Dream is rooted in immigration and opportunity for a better life. In the past five years, nearly 1,900 people in Erie County have become U.S. citizens, hailing from 74 different countries.

But the fact remains that a sizable segment of Erie’s African-American community feels disenfranchised and alienated, as if they do not have a voice.

Lower incomes, educational attainment, and home ownership among black Americans, as well as higher poverty, unemployment, incarceration, and mortality all contribute to racial inequality. We know this to be true. The numbers show it.

Last year, 24/7 Wall Street, a financial news and commentary web site, compiled a list of worst cities for black Americans. Not surprising to some, Erie ranked No. 1, the absolute worst. USA Today published the story on Nov. 7, 2017.

To their credit, the first meeting that my hosts took me to in Erie was with Marcus Atkinson, an African-American minister and executive director of ServErie, which according to its website has the mission of “Restoring communities by connecting people in need to resources.” Much of the work is spearheaded by local churches.

Rev. Atkinson took me to a poor section that his group was targeting, East Side Eagles Neighborhood, where he said there was frequent “activity” – drug dealing, prostitution, shootings. While some of the homes were in decent condition, others were in states of decay.

I learned that Mayor Joe Schember, a former banker who took office in January and viewed by many as the visionary leader that Erie needs, has been knocking on doors trying to make connections with residents in some of these challenged neighborhoods. No doubt, they were surprised to see him as little attention has been shown their way in the past.

Despite the good works and good intentions, much remains to be done to bring Erie’s underclass into the wellspring. I hope the churches and the city continue this mission to make a difference in people’s lives, because it is the right thing to do.

I’m going to end my blog on Erie focusing on three fundamental aspects of economic development. And this holds particularly true when it comes to business/industry recruitment. In each area, Erie falls painfully short.

Vocational Training a Must

The first is vocational training. A skilled workforce is an absolute must for companies and that need transcends all industry sectors. In short, companies need people that can do the work and they will go to places where that is offered.

In the past few decades, community colleges have taken on the role of training people for the jobs that they may take. Some community colleges are very good at this, some not so good. But the fact is that many companies are now expecting that community colleges will do the bulk of their vocational training for them.

Incredibly, Erie does not have a community college offering workforce training. That is especially puzzling because of its manufacturing tradition. Unless or until the city ups the ante on providing jobs skills to its people, economic growth will be inhibited. It’s really that simple.

And So Are Buildings and Sites

Also, you cannot get around the fact that there is a real estate component to economic development. If companies are to grow and expand, they need buildings and/or sites. Without them, they are going elsewhere because they have little other choice.

In short, Erie needs to develop an inventory of buildings and sites, preferably with standalone industrial/business parks to be built near good transportation infrastructure. Public/private partnerships may be the best route to get this started.

Pay to Play

Economic development is a pay-to-play operation. If you are not devoting money to it, you are not in the game. One reason why Texas does so well in economic development is because it is well funded on the local level.

Look, the state can only do so much. Ultimately, it is up to the local community to command the necessary funds on a sustainable basis if it wants to compete in the economic development arena. This is your story to tell. Nobody else’s.

The Japanese have a saying: “Business is war.” It’s all about fighting for finite business resources and investment. You cannot fight without ammunition.

The bottom line is that funding economic development is a necessity to compete and win. You cannot do this on the cheap.

A Coming Together

Erie is on the edge of something greater. It is quite evident that good things are happening. Just look at the activity along the bayfront and downtown.

There is a certain optimism in the air, a turn-the-corner feel as if the community is finally coming together. Mind you, much work remains to be done, but it can be done, and I expect will be done, because these people have, well, grit.

I’ll see you down the road.

Dean Barber is the principal of Barber Business Advisors, LLC, an economic development and corporate location consulting firm based in Dallas. Dean is available as a keynote speaker and can be reached at dbarber@barberadvisors.com. Visit us at www.barberadvisors.com to learn more.