The strength of Erie’s economy has always been based in technological innovation, and the products that have been built here — the ships for Commodore Perry’s fleet, advanced locomotives, and the plastic and metal products that support the automotive, aerospace and pharmaceutical industries — are a source of pride for our community.
But we are losing our competitive edge. Pennsylvania reduced its investment in innovation programs by nearly two-thirds during the Great Recession, according to "Commonwealth of Innovation," a new report by the Brookings Institution. Pennsylvania now ranks sixth out of nine peer states in advanced industry job growth. We trail Indiana and Massachusetts by nine percentage points, and Michigan by 23.
Manufacturing employment in Pennsylvania decreased by 0.5% between 2009 and 2020, according to the Pennsylvania Manufacturing Advisory Council. That shift has hit Erie especially hard: Across the commonwealth, only Chester County has lost more jobs. Our overall job and wage growth is well below the national average.
By contrast, where there is economic growth, it is shown to be directly sparked by university-based research and design activity. In Pennsylvania, all but 1% of that investment occurs in three areas: Pittsburgh, Philadelphia and State College. We have an opportunity to change that.
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Project RESOLVE is a long-term strategy to advance our region's competitiveness by shifting the plastics, metal-casting and transportation industries to a sustainable model. By leveraging our strengths — a skilled workforce, and the expertise at our region's universities — we can build more competitive businesses while reducing the plastic and waste pollution that can negatively affect our air and freshwater, including Lake Erie. Project RESOLVE also will enhance our diversity-and-inclusion efforts, including our Excelerate partnership with Erie Insurance, by creating new engagement and place-based internship programs.
The first phase of Project RESOLVE involves the construction of a Center for Manufacturing Competitiveness, which will include plastics and metal-casting research labs and the nation's first full-service heavy-haul battery testing facility.
Companies need these resources. And we need those companies to thrive: The region's plastics, metal-casting and transportation companies provide approximately 17% of all jobs in the Erie region. They employ nearly 25% of the new Americans in Erie County.
Our political leaders understand that: In January 2021, a committee led by members of Erie County Council explored how to best leverage Erie County's share of federal funding for a post-pandemic recovery. The first recommendation in the committee's report was a call for "transformative projects," such as Project RESOLVE.
The funding formula for the Center for Manufacturing Competitiveness includes three sources: grants from the state Redevelopment Assistance Capital Program, or RACP; Erie County support; and investments by Penn State. Recently, Gov. Tom Wolf allocated the first $1.5 million of RACP funding for RESOLVE, drawing from an approved, multi-year $10 million line item. That's a tremendous endorsem*nt of the project.
Penn State will match up to $5 million in county funding for Project RESOLVE. The university is investing in Behrend, and Erie, to build an innovation hub that will grow our economy and support our citizens.
Our industry partners have pledged to invest in the technologies that will be developed at the Center for Manufacturing Competitiveness. To date, they have committed to making $21 million in investments in their businesses as part of this initiative.
The resolution before Erie County Council is about more than money. It's about vision — the willingness to invest in innovation that will make our region competitive.
That requires committed partners. We know the model works: In 2019, a $6 million grant from the Erie Community Foundation linked four partner institutions — Penn State Behrend, the Hamot Health Foundation, UPMC and the Magee-Womens Research Institute and Foundation — with the goal of bringing clinical medical research trials to Erie. Each of the partners agreed to contribute an additional $5 million. This partnership is now bringing clinical trials, research funding and new jobs to the region, all while improving the health of women in Erie County.
We appreciate that every member of Erie County Council supports Project RESOLVE. The question before the council is how to allocate funding to support it. That discussion has been complicated by a separate debate about the funding of programs that support Erie's seniors and minority communities. Those vitally important programs should be funded. We believe it is possible for county officials to agree on an approach that supports both underserved communities and economic development.
Now is the time to look forward. We have a rare opportunity to come together and support our much-needed economic growth and our diverse community needs. It can be done in a sustainable and environmentally beneficial way that keeps our community competitive in the decades ahead. If we fail to capitalize on that, leveraging the opportunity to match and expand on local investment, the generations that follow us will only fall further behind.
Ralph Ford is the chancellor of Penn State Behrend.
