The Power of 32, created and funded by five Pittsburgh-based foundations, was formally created in May of 2009.

Allen Kukovich, who spent 27 years in the Pennsylvania state legislature representing Westmoreland County, serves as regional chair of the organization.

“The presidents of five western Pennsylvania foundations wanted to learn about the most effective way to use their philanthropy,” Kukovich said. “Meetings were held at the Institute of Politics at the University of Pittsburgh and some people suggested we try regional visioning here. It had been done in Utah and North Carolina,” among other places.

The Power of 32 recently entered into what Kukovich called “the listening phase.” A series of small “community conversations” are being held throughout the region to assess what’s on the minds of the citizens.

Thus far the sessions have been productive and constructive. “We want to give everyone in the region a chance to bounce their opinion off the group,” Kukovich said. “We are trying to get people to think long-term.”

The goal is to make the 32-county region a thriving, pleasant place to live and work. Included in the effort is the development of a strategy for economic development.

Not everyone agrees with the concept or Kukovich’s optimistic assessment of the Power of 32’s potential.

“I think it’s a waste of somebody’s money,” said Jake Haulk, Ph.D., economist and president of the Allegheny Institute for Public Policy. “The major problem is that it is such a wide area with disparate government structures.

Having four states complicates things enormously. It’s a Herculean task to get agreement on anything. They tried this ‘metropolitanization’ in Pittsburgh and it didn’t work. Now they think that by casting their nets wider it will. You’re going to end up with hundreds of different views that can never be pulled together.”

The Power of 32 creators see this “largest regional visioning project ever” as a way to create a more economically competitive area. The counties in the region share a common history and industrial past, a common workforce, and common assets including universities, health care systems and natural resources.

“Our interests are aligned,” said Kukovich. “Regionalization is the only way to compete in a global economy.

“In two months we will move into a consensus building phase,” said Kukovich. “There will be data analysis and issues identified. We will create an achievable agenda and then prioritize it. By the end of ten months we will hopefully create a shared vision and empower the counties to achieve it. We want to get sign off from as many people as we can, including the governors of the four states.”

Kukovich acknowledges that a major challenge for the Power of 32 is the mindset of the region that dates back more than a century. “It’s natural for policy makers to think short term,” he said. “There are going to be problems between municipalities that may not be that far apart. We may even deal with something that happened at a football game in the 1950s.”

In selecting the 32 counties in the region, the organizers took a number of factors into account. These included transportation, common media markets, geography, and cultural concerns.

“Pittsburgh is driving this and it’s their agenda,” said Haulk. “Some of them actually believe that multi-county planning hasn’t worked because they never had enough counties. This is an uphill battle, at best. They couldn’t get 11 counties around Allegheny to agree. People can only fight so many battles. Let’s just say that when all is said and done, more will be said then done. Tell me what they’re going to fix in Allegany County, Maryland’s transportation system that is going to make the people of Mahoning County, Ohio happy?” Kukovich believes that there is now an understanding that counties need to be collaborative to succeed in fighting for jobs and government dollars. “I have been encouraged that people see that,” he said.

“To me it all seems like a fool’s errand,” said Haulk.

Now, the culinary trio are branching out with the sale of their first franchise store in Danville. They are working with two other potential buyers, one in Minnesota and the other in West Virginia.

“We were never really thinking about franchising, “ said Brandy. “It was the idea of the people who purchased the first one.”

John and Barbara Bryce are the new owners of Herwig’s of Danville, having set up shop on Mill Street.

“John was a chemist who worked in Williamsport,” Gundy recalled. “He was the one who asked about the opportunity to buy a franchise.”

Having no idea how to franchise their business, the Brandstatters found help from an attorney in New York City who specializes in creating franchising opportunities. With his help they were able to create a handbook for franchising Herwig’s.

The purchase price for a franchise was set at $50,000 plus 5 percent of sales, excluding alcohol.

“We train them for several weeks on how to cook authentic Austrian food,” said Brandy. How to make the different sausages that we make and our potato salad. We work with them every day for two weeks to make sure they get the basics. They are buying our name, reputation and expertise.”

A major consideration for the Brandstatters is leaving each franchise a large enough market in which to do business.

“We want them to be successful, and we want their customers to have as much fun as ours do,” Brandy said. “All of our people are trained to do the same things we do, including the (theatrical) interactions with customers. Everyone does everything.”

“Pennsylvania lends itself well to our type of cooking. And we cook the same for our customers as we do at home.. We also buy as much food locally as we can, including our pork.” Brandy would like to establish a Herwig’s restaurant in Altoona.

At Herwig’s bacon is, indeed, an herb.

“That’s a saying that we created and trademarked,” said Brandy. “And it’s true. Bernd makes some of our most popular dishes – especially deserts –with bacon. We have bacon ice cream and chocolate covered bacon.”

Diners from throughout the United States as well as many nations throughout the world have stopped in for the great food and unique atmosphere. At Herwig’s if you don’t finish your food they will come after you with a stick. It‘s all in good fun. Now, the Brandstatters are working to share their love of cooking as well as the joy they receive from serving customers with a sense of humor.

At each stop the message was clear, something needs to be done – and soon – to address
the transportation needs of the Commonwealth, since Act 44 — which depended on the
tolling of Interstate 80 — was shot down by the federal government.

Recalling the old Fram Oil Filter commercial of years ago, Rendell quipped, “Remember
when the narrator said you can pay me now, or you can pay me later? Well that’s
where we are in Pennsylvania.” Rendell explained that the state can pay for a strong
transportation budget now – including the shortfall of $3.4 billion – or it can pay a lot
more later as the deferred maintenance of bridges and road surfaces adds up.

“Do we really need a tragedy to happen before we do something about this,” Rendell
asked? “I certainly hope not.

Rendell chose the intersection of Interstate 80 and State Route 26 as the spot for his
Centre County press conference because that spot alone is going to require $115 million
to improve two bridges and create a high-speed connection between I-99 and I-80.

“I’ve repeatedly called on the General Assembly to set aside partisanship and act on
transportation funding solutions that will not just shore up Pennsylvania’s crumbling
infrastructure, but allow for real improvements in the years ahead,” Rendell stated.

Rendell suggested a number of funding possibilities including raising state licensing and
registration fees, increasing the gasoline tax by 3.5 cents per gallon, closing tax loopholes
that allow gasoline companies to avoid paying corporate income taxes and others.
Rendell would prefer that legislators enact an oil company excess profit tax but he said he
would consider other proposals to generate the funds necessary to ensure a safe and efficient
transportation infrastructure that will serve future generations.

According to Jason Henry, outreach coordinator for the Power of 32 organization, the region faces common challenges and opportunities in the global economy.

“We invite people from communities from across the entire region – and across all economic sectors – to engage in small group discussions,” Henry said. “We start by asking them why they came to the meeting, to talk about the strengths and weaknesses of their communities and where they would like to see their community in 15 years. It’s a like a giant brainstorming session. Next year we will sponsor a massive town hall.”

The first community conversation took place on July 25.

The data that is collected at the man y conversations will be compiled and solutions will be suggested, Henry said. “These will be presented to the public for review.”

Henry suggests that the major challenge facing the initiative is helping communities get past provincial thinking. “We have to present this as a way to get beyond politics and political  infighting. The Sunbelt isn’t waiting around for us to solve our problems and make the region more attractive to business. Maybe this is going to take a group like ours to show that the regional approach is the best.”

Henry pointed to the success that Monroe County, Ohio had in attracting a General Motors factory by thinking regionally.

“We need to put aside our differences to attract large companies. It can be done,” Henry said.

PBC: The recent report from Penn State indicated that there would be many jobs created by the Marcellus drilling. How can people in the PA Marcellus regions prepare to take advantage of the jobs that will be available?

DB: While the development of natural gas from the Pennsylvania’s Marcellus Shale is in its earliest phase, the demand for a skilled workforce is already expanding rapidly. It is likely, with the continued development of the Pennsylvania Marcellus Shale and the aging of the current natural gas industry workforce, that more than 200,000 well-paying jobs will be generated over the next decade, with an even greater number as drilling activity increases.

Due to this recent resurgence of the industry, companies are having a difficult time finding all the employees they need to drill, service and operate their wells. There is an immediate need for truck drivers/operators, equipment operators, drillers, rig hands, geologists/geophysical staff, production workers, well tenders, engineers, land agents and more.

The oil and gas industry is partnering with educational institutions around the Commonwealth to help train for this emerging oil and gas workforce. Technical schools and colleges throughout Pennsylvania’s Marcellus region are developing programs aimed at training the specialists who will be needed by the natural gas industry.

PBC: What are the programs you’re referring to?

DB: Examples include the Marcellus Shale Education and Training Center (MSETC) at Penn College; the University of Pittsburgh-Bradford has developed curriculum for the petroleum technology degree and supports the Pitt-Bradford Energy Institute;

Lackawanna College has implemented a two-year associate’s degree program – Natural Gas Technology; PA Training Consultant’s  “Natural Gas Operator’s Course” conducted at Western Area Career and Technology Center in Houston, Pa., and at the Steel Center in Braddock, Pa.;  Keystone College has implemented the Gas and Alternative Technology Energy Solutions (GATES) program, a four-year program designed to prepare students for careers in the  emerging gas and oil extraction and alternative energy industries; and the Potter County Education Council has started an Introduction to the Natural Gas Industry and Workplace Expectations program.

The industry has been working with educational providers, Workforce Investment Boards and the PA CareerLinks around the state to develop a comprehensive recruitment, training, placement and retention program.

We encourage companies in this industry to list their job openings with the PA CareerLink and the Commonwealth Workforce Development System as a means of bringing together employers and potential employees. Job seekers interested in looking into jobs in Pennsylvania’s oil and gas industry are encouraged to talk with their academic or career counselor, or contact the local PA CareerLink office.

PBC: How can local high schools and technical/vocational schools help prepare the workforce?

DB: High schools and technical/vocational schools will be critical in laying the foundation for career awareness and teaching the basic skills needed for entry into this growing industry. The Pennsylvania Oil & Gas Extraction Industry Workforce Partnership produced a “Great Jobs in Oil and Gas” interactive CD for career counselors that tell about opportunities in the industry and the skills needed for these jobs. Educators that are interested in learning more about the industry and implementing curriculum are encouraged to attend the second annual ShaleNET Workforce Forum that will be held December 6 and 7, 2010, at the Blair County Convention Center.

PBC: What are the skill sets that are sought by gas companies?

DB: The gas and service companies are looking for candidates with a good work ethic and understand what it takes to run a 24/7 operation.  These positions require the ability to work in all weather conditions and all types of hours. Many companies run a 12-hour shift with a two week on/off rotation.  Of utmost importance are individuals that are drug and alcohol free, possess a valid drivers’ license, physically fit for labor, mechanically inclined and are safety and environmentally conscious.

PBC: What are the major job categories?

DB: The development of the shale will be done in three phases – pre-drilling, drilling and post-drilling phases. Each of those phases requires a special group of jobs to complete, ranging from entry-level laborers to professionals with college degrees. According to the MSETC’s Workforce Assessment conducted in 2009, the direct workforce required for a single well is comprised of over 400 individuals working in 150 different occupations.

PBC: What are some of the ancillary jobs that will be created as a result of growth from gas drilling?

DB: There will be many ancillary industries that will benefit from the growth of the natural gas industry. Indirect jobs will come from companies that supply surveyors, cement, rig parts, real estate, gas processors, machinery manufacturing, pipeline, iron and steel, rock and quarries, construction, commodity traders, and heavy equipment. Induced jobs will come from hotels, retail, education, travel, food and drink, and entertainment.

PBC: From PIOGA’s point of view, how can businesses take advantage of this unique opportunity? What about an individual – who should people contact?

DB: PIOGA has been a proud planning partner of all the oil and gas business-to-business expos and informational sessions that are taking place around the state.  These outreach events have been very beneficial for the business community to make connections, to showcase their products/ services and build relationships with the gas and service companies that are working in the region.

Businesses interested in servicing this industry must understand the nature of this industry and need to be flexible and nimble to meet the needs of its 24/7 operations.

Many entrepreneurial–minded individuals have learned how to cater to this mobile industry, such as the dry cleaner that picks up/drops off at the drill site or the caterer that travels around providing hot meals to the gas workers or the supply company that can deliver parts in the middle of the day or night.

Ideas for networking and working with this industry: join the local chamber of commerce, join an oil and gas trade association such as PIOGA, monitor the activity of drill site permits and the gas companies applying for those permits on the Department of Environmental Protection’s website, look for networking opportunities geared toward the oil and natural gas industry that many communities are hosting.

PBC: With regard to workforce myths versus realities, what would you say are the major misconceptions about the opportunities that Marcellus presents?

DB: Pennsylvania oil and natural gas producers are committed to hiring a local workforce.  There’s a misconception that these jobs are only going to out-of-state workers. Due to the new technology and drilling techniques, companies need to use sub-contractors that have experience from other shale plays for this preliminary work. It’s paramount that experienced and skilled workers are on the job site for safety and technological know-how.

Other myths floating out there that might deter a candidate from pursuing this industry as a career path include: extensive travel and time away from family, the stereotype that oil/gas workers are environmental “pariahs” with a complete disregard for the environment, the impression that you need to have a post-graduate degree or that you only need a high school diploma to work for this industry, it’s a “white” male-dominated industry, and that these are low paying jobs. These are only myths and are completely false.

Staff and donors gather to cut the ribbon at the new YSB headquarters in State College.

State College — The Youth Service Bureau, a Centre County-based organization that develops and delivers programs to help troubled youth in their home communities, cut the ribbon on its new location on Friday, June 11.

The YSB was able to acquire the building, located at 325 West Aaron Drive in State College, through the generous help of  local business leaders.

The Hawbaker family, who operate several of the region’s most respected construction firms, provided a substantial gift to the YSB, according to Andrea Boyles, YSB CEO.

The Hawbaker Family Partnership financed the remainder of the costs.

The Hawbaker family

In addition, a significant gift was made by the Louis E. Silvi Foundation. In her remarks, Boyles noted that the real estate transaction was the brainchild of Nancy Ring at ReMax Centre Real Estate. In addition, George McMurtry, owner of  America’s Carpet Outlet re-carpeted the building at a reduced price.

“This allows us to bring our entire staff of 40 together,” Boyles said. “This is a major step for the organization.”

According to a statement from the Chamber of Business and Industry of Centre County, the YSB will be able to reduce its overall monthly expenses as a result of owning its own facility, rather than renting two facilities in the county. In these difficult economic times, the move decreases overhead costs and ensures that every dollar is invested to help children and families who benefit from the YSB services.

Boyles noted that the YSB has developed strong ties to the region’s business community. “We have a long history of working with business leaders,” she said. “Getting our own building was on my 10 year to-do list, but through the generosity of the Hawbaker family, we were able to do it now. We are heavily involved with the Chamber of Business and Industry, and we try to be good business partners.”

A military humvee on display at the 2009 Showcase for Commerce.

Johnstown – Now in its 20^th year, the annual Showcase for Commerce, the major business exposition administered by the Greater Johnstown/Cambria County  Chamber of Commerce, has grown into an important gathering of defense contractors and related industries.  Thanks to the powerful influence of Congressman John Murtha, the event has become one of the largest government procurement expositions in the nation.

With the recent passing of  the Congressman, the event is now entering the post-Murtha era. All signs, thus far, point to a continuation of the event as an  important and influential business  gathering.

This year’s Showcase for Commerce began June 3 with attendees by invitation-only. Today, June 4, the event is open to the public. There is a $5 entrance fee.

“The response to the Showcase  has been tremendous this year,” said Robert Layo, president and CEO of the Greater Johnstown/Cambria County Chamber of Commerce. Layo said that there are 161 exhibitors at the show.  “And we have about three dozen new companies in the show,” he said. More than 3,000 visitors are expected.

“It’s a complete sell out,”  he said. “We owe this to the legacy of the Congressman (Murtha).  His personal attention to the Showcase is what makes it so popular.”

Layo does not feel that Murtha’s death had a negative effect on the show.  “The long  recession has hurt some of the companies,” he said. “I think it’s the economy, more than  anything else. We have had a tremendous effort by Dan DeVos, Showcase chairman.”

According to DeVos, more than 30 multi-national defense firms will be present, seeking qualified subcontractors and suppliers from the Johnstown region.

Layo said that Congressman and House Appropriations Defense Subcommittee Norm Dicks (Washington, 6^th District)  has stepped in to help sponsor the show.

“We also expect to see [newly elected] Congressman [Mark] Critz,” Layo said.

Since 1991, the Showcase has been responsible for injecting more than $2 billion into the western Pennsylvania economy.

Bedford — The Bedford County Development Association held its annual meeting on Thursday, May 27, at the Omni Bedford Springs Resort and Spa.  The featured speaker was Martin A. Corry, a federal health policy consultant with Buchanan, Ingersoll and Rooney. Corry’s presentation was based on his work with UPMC.

The focus of the address was on the impact that the new health care bill will have on business and industry.

“”It was agreed that there were problems that needed to be addressed,” he stated. “It didn’t work out to be bipartisan, but we’re now in the implementation phase. There always are amendments in major bills, so no, matter your position, it will be important to continue to speak up and continue a dialogue.”

Corry distributed a timeline for the implementation of the bill to those attending.

One of the problems with the bill, thus far, Corry explained, has been the lack of a clear understanding of what is involved. The language used in creating the hill, he noted, was too technical.

Other concerns, Corry noted, include the level of Medicare payments,the impact on rural hospitals, and the impact on  Medicare Advantage plans.

Bette Slayton, president of BCDA, provided an overview of 2009, a year in which the unemployment rate reached 12 percent in Bedford. While there were setbacks, 2010 has begun to show that the economy is rebounding in the region. Many businesses in Bedford County were able to make it through the recession relatively unharmed.