Community Revitalization and Jobs

INTRODUCTION

Delaware County is a great place to live and to work.  We have a tremendous number of resources for a growing business environment:  Public transportation, the airport, thirteen outstanding universities, colleges, and trade schools.  Yet our economy is slipping behind our neighboring counties.  County government must provide the leadership to inject new vigor in Delaware County’s economy, attract new businesses, and entice skilled workers to those businesses to move this county forward.  Our current county government is simply not getting the job done.  Their piecemeal approach has attracted a new larger employer here and there.  Yet, there is no comprehensive plan for sustainable economic growth.  David Landau will provide the leadership and the vision to get Delaware County’s economy moving.

THE PROBLEM

According to the Pennsylvania Bureau of Labor Statistics, Delaware County lost over 8000 net jobs from 1998-2005.  In addition to this job attrition, over 600 private businesses have left Delaware County in the past three years, including 20% of our local manufacturing establishments.  Moreover, since 1987, the number of jobs in Delaware County has increased by 12%, less than half of the national average of 30% over the same time period.

The decline in jobs and employment opportunities is echoed by the long-term general population trends in Delaware County.  The rate of population growth serves as an accurate measure of economic growth, as economic development and population growth exist in synergy.  Delaware County’s rate of population growth over the past 20 years has been anemic.  Our population has increased by 1% over the past twenty years, below the PA rate of 5% and far below the national rate of 22%. 

These numbers stand out even more when compared to our peer counties.  While Delaware County’s population growth hovers at about 1% over the past 20 years, our peers in the Delaware Valley have demonstrated much higher gains.  Bucks, Chester, and Montgomery counties all boast a population growth rate of over 10% over the past 20 years.  Not surprisingly, all of these three suburban Philadelphia counties exhibit much higher rates of job creation and subsequent total employment numbers. 

A recent study by the Delaware Valley Regional Planning Commission (DVRPC) forecasts employment levels in 2035 based on historical workforce and population trends in the Delaware Valley counties of Delaware, Philadelphia, Montgomery, Chester, and Bucks.  The forecast percent increase from 2005 to 2035 in employment in Montgomery County is 15.7%; in Chester County, 32.9%; and in Bucks County it is 23.2%.  The predicted increase in employment over thirty years for Delaware County is predicted to grow by 2.5%. 

DAVID’S PLAN

Delaware County needs to take a more comprehensive approach to economic development in our county, starting with the development of a comprehensive, countywide plan, much like Chester and Montgomery counties.  A comprehensive plan should deal with what I call, “The 4 C’s for a New Day in Delaware County.”

1.      Community Revitalization

First and foremost revitalizing our aging and distressed communities must become a priority.

Pennsylvania offers a number of programs suited to aid local government in community revitalization.  The Governor’s Center for Local Government offers consultation in areas of planning and financing through regional Community Action Teams.   These Community Action Teams help guide municipalities to the programs that best fit their needs.  Unfortunately, Delaware County does not utilize these resources as much as it should. 

Underuse of the resources available essentially means that Delaware County is leaving money on the table.  For instance, since the inception of the Pennsylvania New Communities Main Street and Elm Street programs, designed to improve streetscapes and town centers in distressed areas, Delaware County has received a meager sum of money in comparison to our sister counties.

Montgomery County: $1.612 million

Chester County:          $2.581 million

Bucks County:            $882,000

Delaware County:       $456,000 

2.      Collaboration 

In order to further develop resources for small businesses, Delaware County must continue to actively strive for efficient and effective partnerships with the private sector, the Delaware County Chamber of Commerce, and large, well-established companies.  Cooperation between the private sector and county government will allow for the procurement of low cost business loans, tax credits, training assistance, and access to expert advice and startup help. 

Chester County, for example, has partnered with the Community First Fund to provide small business loans and microfinance loan solutions for small business owners.  Montgomery County has partnered with S.C.O.R.E., the Service Corps of Retired Executives, in order to provide small business owners with the expertise of former businessmen at no expense.  Delaware County must continue to actively pursue these partnerships to encourage small business development. 

Funding is also available from the state for collaborative efforts between municipalities.  Neighboring Montgomery County has received over $240,000 from the Shared Municipal Services in order to improve economic development planning coordination.  Chester County received $140,000.  Delaware County has received only $103,000.  County government must encourage coordination and a multi-municipal approach to economic development.   

 3.      Career Training 

Delaware County must have the ability to provide skilled workers when a business is interested in relocating to Delaware County or else risk losing the company.

 Like Montgomery, Chester, and Bucks counties, Delaware County must continue to partner with local community colleges and training offices to provide job training.  The State Department of Community and Economic Development provides grant money through the Customized Job Training program (CJT) for which any local workforce investment board, private company, economic development agency, or other employing entity can apply.  Since the program’s inception Delaware County’s eligible applicants have received far less money and created far fewer jobs than our peer counties: 

Delaware County government must work harder to inform eligible applicants of the resources available.  The result would be increased grant money for training, allowing for the retention of old jobs as well as the creation of new jobs.  Furthermore, the county must actively and aggressively recruit businesses using programs like CJT to ensure a supply of skilled labor.  Unless the county works to make businesses aware of these resources, they will simply relocate in order to find larger pools of skilled employees.  

4.      Commerce  

Delaware County is creating jobs at a rate well below the state and national average.  Statistics show that job creation in Delaware County has remained stagnant for a number of years.  In 30 years, we are projected to create 2.5% more jobs than we have now, while Montgomery, Bucks, and Chester counties are all projected to have growth over 10%. 

In addition, Delaware County has performed below average in developing key industry sectors.  These jobs drive the 21^st century economy including: High Tech, Manufacturing and Materials, Life Sciences, and Business Services, among others.  Of the jobs that Delaware County is currently losing, almost 20% are manufacturing jobs.  In the meantime, our peer counties are developing high tech industry clusters that grow rapidly and are sustainable in today’s economy.

Delaware County must start by working to preserve the jobs that it already has.  Council can facilitate job preservation through the use of state funds such as the Opportunity Grant Program.  However, despite having the lowest rates of job creation and retention in the suburban Philadelphia counties, Delaware County receives only the third highest amount of funding.  County government must do more to secure these funds to preserve jobs in Delaware County.                                         

                                       County:                    Grant Allocation:            Jobs Preserved:   

We also must do more to attract small business to Delaware County.  While our peer counties engage in collaborative efforts with non-profits like S.C.O.R.E. and the Community First Fund, small businesses in Delaware County have not benefited from similar partnerships. 

The county government must act as a liaison and as a guide for small business owners by actively pursuing collaborative efforts with the state government.  Then, small businesses will be able to use state and county programs concurrently, lowering their taxes and driving up their probability of success and sustainable business.