Moshannon Valley Economic Development Partnership looks to keep adding to tool box

PHILIPSBURG — For decades, the economy in Philipsburg and the surrounding Moshannon Valley was dependent on manufacturing. Dozens of sewing factories and a huge cigar plant helped push the local economy well into the 1980s; however, those factories, and the work inside of them, were eventually moved off to other countries, where labor is much cheaper.

Now, the manufacturing industry has made a comeback in Philipsburg, and with it, several other economic ventures have begun, including technology startups and consulting firms.

‘We really do have a lot of diversity as far as the different businesses and industries in Philipsburg,’ said Stan LaFuria, executive director of the Moshannon Valley Economic Development Partnership. ‘But, we seem to always go back to manufacturing. That’s our bread and butter, and if we keep producing quality items, we’re going to continue to grow, both economically and as a community.’

He said the MVEDP is able to make a difference for area businesses by having building space available, sites with infrastructure and loan financing.

‘We are adding to our sites by purchasing from the Commonwealth of PA the former Philipsburg Area Hospital site, 15 acres, that we will be able to make available to both existing businesses and to businesses from outside the area,’ he said. ‘We have loan financing available that can be used to match private equity and bank funding.’

He also said the building space available continues to be priced below market and all is well maintained. And, the organization is certified, which makes MVEDP able to administer the state’s PIDA loan program for all types of businesses.

THREE M’s ARE KEY

 Despite the building space available and any loan financing, LaFuria said the key to a successful business is ‘the three M’s’ — management, market and money.

‘We have businesses here who are owned by very talented people and well managed companies,’ said LaFuria. ‘There must be a market for the business’s product or services. If the management and markets are in place, the money will usually fall into place.’

There is a lot going on in the Philipsburg and the Moshannon Valley now. Manufacturers such as Diamondback Truck Covers, Advanced Powder Products and Lee Industries are growing and adding new square footage to increase production capacities, and last year, three local companies were recognized in Inc. Magazine as some of the nation’s top 5,000 fastest-growing companies, including TMMData, Advanced Powder Products and Diamondback Truck Covers.

‘We’re very fortunate to have these businesses located here, and to have them be nationally recognized is just incredible,’ said LaFuria.

Lee Industries is working on a plant expansion that will result in a greater capacity to produce the world-class stainless steel kettle vats that are made by the company. The company also plans to expand its line of product, and thus, maybe add more jobs to the local market.

Diamondback Truck Covers is in the midst of a construction project that will bring a new, state-of-the-art manufacturing facility to the Moshannon Valley Regional Business Park in Rush Township. This facility will make the manufacturing process more efficient, provide better work flow and increase sales.

LaFuria said Advanced Powder Products has seen sales growth of more than 50 percent every year for the past couple years and a plant expansion is currently being planned. The senior care facility Windy Hill Village also has a project on the books, as a new 48-unit apartment building will be constructed this year.

LaFuria also outlined other area businesses, industries and economic development tools making an impact in Philipsburg, including:

■ Health care facilities

Within the past two year, Penn Highlands Medical Center and Mount Nittany Medical Center added facilities in Philipsburg, making health care more accessible to people who live there.
■ More acreage

MVEDP is adding to the inventory of sites available to existing businesses and to businesses from outside the area. Acreage that is and will become available has the Keystone Opportunity Zone designation, which provides important tax breaks to businesses working there.
■ Outside developers

MVEDP is interested in finding sites for both residential and commercial products.
■ Internet upgrades

Strong Internet connections make it possible for companies such as TMMData to be located in Philipsburg. LaFuria said a company like this could be located anywhere in the United States, yet it chose to locate in Philipsburg.
■ Philipsburg incubator

This small business incubator opened in 2016 to provide space and resources for start-up businesses and companies.

■ American Home Patient

This company has recognized the good workforce in Philipsburg and the low cost of doing business. While AHH has shut down facilities in Buffalo, N.Y., and Oklahoma, it has expanded the operation in MVEDP’s Enterprise Center.

LaFuria said the future for business in Philipsburg is dependent on a number of factors, including the national and state economies, interest rates, bank willingness to loan money and the ability to find good and dependable workers.

‘We have lots of tools to attract businesses and companies, and I think we’ve done a really good job at that,’ said LaFuria. ‘But, at the same time, we can’t just sit back on our heels and wait for people to come to us. We need to be aggressive in trying to bring companies in, and we have to have strong marketing to find these companies. We also must continue to add to our economic tool box so when someone comes in and says, ‘well, it’s either here or Ohio,’ they decide to choose here.’