PPG Axes 1,700 Jobs As Part Of Global Restructuring

PPG Industries Inc. is trimming 4 percent of its global workforce as the world’s largest paint and coatings company tries to reduce costs related to a spate of recent acquisitions.

The Downtown-based company said it was cutting 1,700 jobs as part of a restructuring that also includes reducing production capacity. About 40 of PPG’s 2,500-person workforce in Pittsburgh will lose jobs, the company said.

PPG is aiming to achieve $100 million to $105 million in annual pretax savings by 2017 from the restructuring. Further details of the capacity reductions were not available, the company said.

PPG spent about $2.4 billion buying companies last year, part of a long-term strategy to grow through acquisitions.

Read more: http://triblive.com/business/headlines/8177530-74/million-share-ppg#ixzz3XUlxVMxb
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Experts Worry Stagnant Wages Are Delaying Economic Recovery

Editor’s note:  Came across this article right after I posted about grocery store price increases. They certainly speak to each other.

Jim Talerico got a $900 raise this year, but he isn’t happy about it.

“It’s a terrible wage,” said Talerico, a part-time faculty member in Robert Morris University’s English department. “Now I’m making a whopping $14,400.”

It was the first pay raise in 10 years for the 54-year-old Ingomar resident. Even with the $13,500 he earns from his other part-time teaching job at Community College of Allegheny County, he said a barista job at Starbucks looks tempting. At least it would come with benefits.

Working Americans have had to make difficult choices — from canceling doctor’s appointments to cutting their grocery budgets — as their paychecks barely keep up with the cost of living.

Consumer spending drives 70 percent of economic activity, and wage stagnation has been a stubborn problem that might be holding back the recovery as other measures such as unemployment improve.

Read more: http://triblive.com/business/headlines/6812082-74/percent-pay-employers#ixzz3FO9O6Fhr
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Corbett: Gas-Line Project Fuels Jobs

Map of Pennsylvania highlighting Monroe County (Photo credit: Wikipedia)

SWIFTWATER — Gov. Tom Corbett said Monday’s announcement to extend the Route 6/11 Corridor Natural Gas Line is about creating and attracting jobs but, more important, he said it’s about retaining jobs already in Pennsylvania.

Corbett visited the campus of Sanofi Pasteur, the vaccines division of Sanofi in Monroe County, to announce the $5 million extension project, made possible in part through the recent release of a $5 million Economic Growth Initiative grant.

While Corbett said the project is expected to boost job creation and retention in the Northeast Pennsylvania region, he said by lowering utility costs to large employers such as the vaccine maker the 2,000 jobs at the Swiftwater facility — plus 500 contractor positions — are likely to stay.

Read more:  http://www.timesleader.com/news/local-news/678739/Corbett:-Gas-line-project-fuels-jobs

US Economic Growth Slowed To 1.5 Percent Rate In Second Quarter

WASHINGTON (AP) — The U.S. economy grew at an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending.  The slowdown in growth adds to worries that the economy could be stalling three years after the recession ended.

The Commerce Department also said Friday that the economy grew a little better than previously thought in the January-March quarter.  It raised its estimate to a 2 percent rate, up from 1.9 percent.

Growth at or below 2 percent isn’t enough to lower the unemployment rate, which was 8.2 percent last month. And most economists don’t expect growth to pick up much in the second half of the year.  Europe’s financial crisis and a looming budget crisis in the U.S. are expected to slow business investment further.

Read more: http://hosted2.ap.org/PASCR/a5050f4ad4f44dafab85bb41a15281cf/Article_2012-07-27-US-Economy-GDP/id-a8fa417340a94237b704b53fa94dd871

Pittsburgh Ranks 37th In Best-Performing Cities List

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The Pittsburgh metro area fell five spots but remained in the Top 40 in the 2011 Milken Institute Best-Performing Cities Index measuring economic and job growth.

Pittsburgh was ranked 37 on the 2011 list compared to 32 in 2010. This year’s No. 32 was York-Hanover, Pa; the only other Pennsylvania city in the top 50 was Philadelphia, at No. 49.

Pittsburgh was 30th in the United States when it came to one-year job growth during the recession years of 2009-10, and 60th in terms of five-year growth from 2005 to 2010. It was 50th in terms of job growth from June 2010 to June 2011, the Milken Institute said.

Read more: http://www.bizjournals.com/pittsburgh/news/2011/12/19/pittsburgh-37th-best-performing-city.html?ed=2011-12-19&s=article_du&ana=e_du_pub

Glum Econmic News For June

The economic recovery slowed down in June.  Consumer spending fell by .02 percent, which can be blamed in part on rising gas and food prices.  Workers saw incomes rise by only .01 percent, the smallest increase in nine months.  On a positive note, personal savings rose 5.4 percent.

Hiring in June was at the lowest level in nine months.  Only 18,000 net jobs were added and the unemployment rate rose to 9.2%.

Some economic forecasters are lowering their outlook for economic growth in the second half of the year from 2.5 percent to 2.0 percent.

Reading Based Carpenter Technology Poised To Buy Second Company This Year

Berks County’s fifth-largest employer (2009), Carpenter Technology Corp., announced their $558 million agreement to buy Latrobe Specialty Steel Company.  Latrobe Specialty Steel Company manufactures and distributes high-performance materials for aerospace, defense, energy, and other significant applications with manufacturing operations in Pennsylvania, Ohio, Texas, the United Kingdom and seven distribution centers throughout the United States.  In January, Carpenter purchased Amega West Services, LLC, a Houston-based directional drilling component manufacturer and service provider for $54 million.

Latrobe Specialty Steel is headquartered in Latrobe, PA.  Latrobe is 47 miles east of downtown Pittsburgh in Westmoreland County.  The company has been in business since 1913 (Latrobe Electric Steel Company) and employs about 800 people at its various locations.  Latrobe was formerly home to the Latrobe Brewing Company (Rolling Rock beer), golf legend Arnold Palmer and Fred Rogers of Mister Rogers’ Neighborhood fame (Won’t You Be My Neighbor).  Latrobe’s airport is named after Arnold Palmer, who was a pilot.

Carpenter Technology produces and distributes conventional and powder metal specialty alloys, including stainless steels, titanium alloys, tool steels and superalloys.  The company is strengthening its place in the specialty steel market and expanding their services into other compatible manufacturing areas.  Carpenter Technology, headquartered in Spring Township just outside Reading, PA, is an important player in the economy of Berks County.

Carpenter Technology Corp. is traded on the NYSE as CRS and the company website is http://www.cartech.com/

Lancaster, California – A Community Pottstown Should Emulate

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Listed below are the 2009 accomplishments for the City of Lancaster California’s Economic Development/Redevelopment Department.  This is not some wealthy, gated fantasy community.  It is ethnically diverse and economically very middle class.  I listed some demographic info from the city website below the accomplishments (also from the city website).

The accomplishments below are for ONE year – 2009.  The lists for other departments are also impressive.

Will the day ever come when we can expect even a fraction of such results in Pottstown?  I don’t think there has been this much economic development/redevelopment activity here in 10 years, let alone in one year! 

Lancaster, CA had a population of 37,000 people in 1977.  Today, the population is listed at 145,000.  This bedroom community has transformed itself into an economic powerhouse by streamlining the development process (cut red tape) and made local business a TOP priority.  The Lancaster Redevelopment Agency has attracted retail and dining establishments as well as businesses.  The revitalization of downtown Lancaster has been extensive and included façade improvements to existing businesses and the attraction of new business to the downtown.  In 2010, a one mile stretch of Lancaster Boulevard was revitalized which will further economic development in the downtown and beyond.  Lancaster also has an arts community which is helping to drive revitalization.

Lancaster, CA, like Pottstown, is a strong council, weak mayor system of government with a professional manager (like Jason).  I am not advocating that Pottstown try and surpass the population of Allentown.  What I am suggesting is our two communities are not all that different socio-economically.  If this degree of success is possible in Lancaster, CA then revitalization can happen in Pottstown (on a size appropriate scale, of course).  One last thing I will point out is that Lancaster’s city-data crime index for 2009 was 335.2 (Average) compared to Pottstown’s 456.6 (High).  Anything over 450 is considered high. 

Economic Development/Redevelopment Accomplishments for 2009

• Implemented the Lancaster Economic Stimulus Package (ESP), successfully generating an economic impact of over $123 million dollars
• The ESP’s Shop and Drive Program prompted more than $25 million dollars in new auto sales
• Over 5,000 gift cards were issued as part of the ESP’s Shop and Dine Program. More than 400 Lancaster based businesses and over 6,000 citizens participated in the Shop Lancaster program
• Grand Opening of three new restaurants; The Brooklyn Deli, Blvd Express, and Giannini’s in Downtown Lancaster
• Construction started on a $12 million dollar drainage channel enabling the future development of a new Kaiser Permanente facility and the Promenade at Amargosa Creek
• Launched “Destination Lancaster,” a new visitor’s bureau aimed at promoting tourism and supporting businesses within Lancaster and the surrounding Antelope Valley region
• Grand opening of eSolar’s Sierra Sun Tower, a 5MW solar thermal demonstration facility
• Grand opening of the Artist Lofts and Gallery, a 21-unit mixed use project in Downtown Lancaster, representing a $9.4 million dollar investment by Incite Development
• The inaugural “Streets of Lancaster Grand Prix” roared through Downtown Lancaster, garnering more than 20,000 visitors
• Finalized construction plans for $7 million streetscape improvement project in Downtown Lancaster
• Created a Memorandum of Understanding (MOU) with DayStar Farms, Inc. to cooperatively develop the nation’s first solar park
• The University of Antelope Valley was established in Lancaster and will begin to offer Associates, Bachelors, and Masters degrees at its newest campus, the former Antelope Valley Inn site
• Created new partnership with the Small Business Development Center, Wells Fargo Bank, and the AV Board of Trade to provide free one-on-one counseling and low-cost business workshops
• In conjunction with the County of Los Angeles and the City of Palmdale, hosted the Antelope Valley Enterprise Zone kick-off breakfast
• Launched Mayor’s new home-based business initiative to provide additional education, training and resources for home-based businesses in Lancaster
• Established two Community Neighborhood Impact houses through partnerships with local faith-based organizations
• Implemented ten Neighborhood Revitalization Plans to improve housing and public improvements within the newly designated areas
• Received the 2009 International Economic Development Council (IEDC) Promotional Award in recognition of the “Shop Lancaster” marketing campaign. The city also received a Savvy Award from the City-County Communications & Marketing Association (3CMA) for its “Shop Lancaster” marketing program

Race (2006-2008):Number and percentage of:Whites: 86,009 / 56.5 % Blacks/African Americans: 29,263 / 19.2 % American Indian/Alaska Native: 1,017 / 0.7 % Asian: 6,568 / 4.3 % Native Hawaii/Pacific Islander: 306 / 0.2 % Some other race: 24,109 / 15.8 % Two or more races: 4,912 / 3.2 % Hispanic or Latino (of any race): 55,551 / 36.5 %

Economic Characteristics (2006-2008):Number and percentage of persons:In labor force (over age 16): 61,103 / 57.0 % Median household income (2008): $49,494 Median family income (2008): $55,569 Per capita income (2008): $19,273 Percentage of: Families below poverty level: 17.9 % Individuals below poverty level: 20.4 % Mean travel time to work: 31.6 minutes

Economic Growth Slowed In First Quarter

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High gas prices, bad weather, the housing slump and a myriad of other problems kept economic growth at bay for the first quarter of 2011.  The U.S. economy only grew by 1.8% during the first quarter of 2011 as opposed to a growth rate around 3% for the fourth quarter of 2010.

Experts say this is “temporary” and we should expect to see economic growth at 3% for the rest of the year.  Experts are also saying gas prices should stabilize, but gas prices have gone up .30 cents since the end of the first quarter.  The national average for a gallon of regular unleaded gasoline is $3.88 as of today.

What can we do?  Cut back unnecessary spending and hope for the best.

I can say from personal experience, at least around Pottstown, that people were out in force shopping for Easter.  Shopping centers, malls, grocery stores and restaurants benefitted from the spring holiday.  One local store said their sales were at Christmas levels over the Easter weekend.

Pennsylvania Jobless Rate Falls Again

This is great news!  The jobless rate in Pennsylvania has fallen for the second consecutive month and is now 9%.  7,000 new jobs were added in September.  The national jobless rate stands at 9.6% so Pennsylvania is below the national average.