Greater Youngstown 2.0

Youngstown Advantage Redux

2010-01-13T10:02:00.000-08:00

Janko focused my attention on an article in today's Business Journal. Here's the passage that resonated with him:

“I think if we can continue to develop Lordstown’s reputation as the center of gravity for the auto industry,” Ryan said, “the Cruze can be just the beginning.“ Developing a cluster of auto and auto-related companies in the Mahoning Valley, especially those related to alternative and green energy, is possible.

“We have a great opportunity with the green revolution because we offer everything that they would need. If they need business software development, we’ve got the Youngstown business incubator,” he elaborated. “If they need energy product development, we’ve got the Warren incubator. If they need research, we’ve got Youngstown State University. If they need job training we’ve got the community college -- we’ve got everything infrastructure-wise in place. Now it’s about going out and pitching the deal.”

Financial incentives are still important in luring business to the Valley, but they aren’t as important as they once were, Ryan said.

Today, knowing that there are opportunities to partner with YSU, the business incubator and other entities that can help businesses succeed long term are more important than incentives, he observed. Those possibilities along with the Valley’s skilled workforce, low cost of living and vision “are all in our favor,” Ryan said. “Youngstown State having the first STEM college in the state of Ohio sends a signal that we know where the future is.” He added, “I believe our area is leading the country out of the recession.”

In bold is the part of Congressman Tim Ryan's comments that jumped out at me. I'm not a big fan of financial incentives. I'm in good company:

While states battle to outdo each other with bigger incentives, there are smarter ways to attract or bolster companies, the nonprofit research center Good Jobs First of Washington, D.C., suggests in its [report] released today.

For instance: Concentrate efforts around occupations that already are strong in a specific region, rather than creating packages for specific companies. Nuclear, civil and other types of engineering along with biomedical fields are strong in Pittsburgh, so training and job growth efforts could be focused there, Good Jobs First said. ...

... The research center contends Pennsylvania's tax structure isn't significantly different from those in most other nearby states — in fact, it's in the middle of the pack — so the state should "do no more harm to the tax code."

Instead, Pennsylvania should hone its attention on workforce development and other issues such as growing its own employers rather than recruiting from outside, and pushing for better federal trade policies.

Especially in manufacturing, "The number of jobs lost offshore is dozens of times greater than the number lost to other states," Good Jobs First said.

For more, see the Wall Street Journal.

I'm not crazy about the proposed federal trade policy angle, either. But I appreciate the stated course for localities and states to follow instead of lavishing companies with all kinds of money. Even if the incentives do work, the gains are ephemeral. There is always another place that can afford to offer a better deal. Frankly, it is extortion and a lot like the leveraging of brain drain hysteria to get voters (or politicians) to support some boondoggle.

I look around the Rust Belt and I see many regions with the same assets. What sets apart one shrinking city from the rest? Not to scratch the scab off of a recent wound, Sean Safford's research comparing and contrasting Youngstown with Allentown offers possible comparative advantage. I believe that the Mahoning Valley civic infrastructure could be the envy former manufacturing centers across the country. However, Pittsburgh probably holds that distinction thanks to some remarkable partnerships and economic vision that started, in some cases, 50-years ago.

The current civic infrastructure bodes well for the future. It's a big change from the Youngstown Safford saw. The legacy of the James Traficant era won't disappear overnight and the ravaged economic landscape will continue to dominate the headlines. Pittsburgh is just beginning to shake the rust off of its national image, a process that has taken decades and at least two major urban reinventions that served as a model for many US cities such as Minneapolis. This hard-won transformation isn't easy to replicate, unlike generous tax incentives or even substantial tax reform.

The task before us now is to get the good word out and help the ambitious to understand the unique value proposition. This result still eludes Pittsburgh, as the Power of 32 fiasco indicates. Let's hope that the TechBelt Initiative is better up to the task. This should be an open and inclusive process, not business as usual.

Return to Youngstown? Jobs Available

2010-01-12T14:20:00.000-08:00

There's a TechBelt emerging in downtown Youngstown. With the Youngstown Business Incubator (YBI) serving as anchor, the knowledge economy is booming along Federal Street:

Revere Data is the first outside company attracted to the Tech Block, which is being developed downtown by the incubator and the Youngstown Central Area Community Improvement Corp.

Lih-Hann Chiu, Revere’s product manager for federal programs, said Youngstown was selected after a nationwide search because of its low cost of operations and abundance of talent.

He said Revere learned in its research that the area has a good number of college graduates but a lack of jobs for them.

“We found that it is an extremely undertapped area, and one that’s very ripe,” he said.

The company is looking for graduates who have degrees in business, economics, information technology, life sciences or engineering.

Chiu's comments highlight a few things. First, the local talent market has substantial leakage. Qualified graduates from Youngstown State University might stick around if there were jobs that would make use of the expertise. It also indicates that many smart people are now members of the expatriate community we call the Mahoning Valley Diaspora. As our research graphically reveals, you folks haven't fallen too far from the tree. Revere Data has a large talent shed from which to find good employees.

The second point is the low cost of doing this kind of business. The USA Today article detailing the cheap real estate opportunities in the area provides a compelling example. Most Rust Belt cities offer a similar value proposition, but few combine it with a revitalizing downtown and an ample supply of talent. Add to that the dynamic political leadership that might be the envy of all shrinking cities and you can see why Revere Data would open an office in Youngstown.

While the 10 openings are entry level, this is your chance to move back and join the Defend Youngstown cause. The Tech Block is the center of the Mahoning Valley renaissance. Here's 411 printed in the Business Journal:

Revere Data LLC, which is opening a research office in the Youngstown Business Incubator’s Semple Building, is seeking 10 full-time research associates to conduct research on publicly traded U.S. companies.

In August, Jim Cossler, YBI’s executive director, announced that the San Francisco business research and intelligence company would relocate its research and development operations to Youngstown. The nine-year-old company specializes in business intelligence and mapping.

Applicants for the positions should have an undergraduate degree in business. economics, information technology, life sciences or engineering, zero to two years of work experience, strong research and Internet search skills, and a demonstrated interest in business, finance and global affairs.

Candidates are invited to send a resume to Cossler specifically referencing the Revere Data openings.

Email Jim Cossler at jcossler@ybi.org if you are interested in the position.

Greater Youngstown Green Manufacturing

2010-01-11T08:44:00.000-08:00

What will the new economy look like? Congressman Tim Ryan and US Senator Sherrod Brown proposed a vision that makes the TechBelt an American center for green innovation. An article in today's Akron Beacon Journal about the wind power industry provides a glimpse of the emerging geography:

Green Energy Technologies LLC is not producing utility-size wind turbines but smaller units aimed at commercial and industrial customers.

The privately held firm based in Bath Township is selling what it calls the WindCube, a wind turbine that will produce power on site, not just electricity to be added to a grid like the large twirling turbines. ...

... The WindCube — with its 61 components — will be built by Roth Bros. Inc., a Youngstown energy-management company that has invested $2 million in what Cironi is doing. Parker-Hannifin Corp. in Cleveland will produce the generator and electrical system.

From Cleveland to Morgantown (West Virginia), your alternative energy idea can be manufactured in the Mahoning Valley. That's not to say innovation can't happen in Youngstown, but that industrial know-how is already clustered in the area. This is an example of how regional approaches to economic development can benefit all member communities.

The kind of talent needed to produce these goods is already in short supply. Research and development is geographically mobile, but ample supplies of manufacturing expertise (along with the necessary infrastructure) are not. I think this is a harbinger of more geographically concentrated global supply chains providing the TechBelt with a comparative advantage. Also, it doesn't hurt that Ryan and Brown are funneling substantial public investment in clean technology back home.

Thoughts on ITC Ruling Press Conference in Warren

2010-01-08T09:54:00.000-08:00

I was tempted to address the criticism of the Mahoning Valley trade mission to Israel, but the objections are ridiculous. Those community leaders got the 15-minutes they were seeking. I found the following comment about the benefits of the import duties illuminating:

The congressman emphasized that the U.S. is on the verge of a “green revolution” in which companies such as Wheatland Tube and V&M Star would be called on to produce the components needed to power America’s future through alternative energy sources such as wind turbines.

“There is a revolution coming in green technology,” Ryan said. “If we let the Chinese continue to dump their products on our country, then we’ll see another revolution in America that we’ll miss.”

Today's news cycle is still spitting out stories about the Green Revolution (great one here). Reads like a media blitz trumpeting Obama's preferred economic strategy, a manufacturing manifesto. Whether or not it is a good idea, the money is coming.

That pipeline is pointed right at Greater Youngstown. Again, I'll stress the connectivity opportunities. Israel is certainly one of them, but so is Pittsburgh (via the TechBelt Initiative) and the Front Range of Colorado. The regional diaspora in the Greater Denver area could prove to be very useful, particularly concerning alternative energy projects back home.

Blog Release: ITC Ruling Press Conference in Warren

2010-01-07T10:54:00.000-08:00

Congressman Tim Ryan joins Senator Sherrod Brown and ODOD Director Lisa Patt-McDaniel at Local Steel Manufacturer to Discuss Recent ITC Ruling on Chinese Steel Imports

(Warren, OH) This afternoon, Congressman Tim Ryan, Senator Sherrod Brown, and Ohio Department of Development Director Lisa Patt-McDaniel will discuss the impact of the International Trade Commission’s recent ruling regarding Oil Country Tubular Goods imported from China. William Kerins, President of Wheatland Tube Co., and Roger Lindgren, President and COO of V&M Star Steel, will join the legislators to address the potential positive effects of this ruling on their local operations.

Regarding the decision, Congressman Ryan stated that, “For years, our manufacturers have been fighting a flood of inferior Chinese products in the American market. The recent ITC decision regarding the placement of tariffs on steel pipe and its previous decision regarding rubber tires move us in the right direction toward leveling the playing field for local businesses including V&M Star and Wheatland Tube. Senator Brown and I will continue to work with the ITC and the Obama Administration to seek tariffs for other Chinese products that threaten to undermine the economic health of this nation.”

Senator Brown added that, “Trade enforcement means jobs. For too long, domestic manufacturers like Wheatland Tube and V&M Star faced an inexcusable flood of Chinese products made with unfair subsidies. By enforcing trade law, we will ensure a fair playing field and save jobs.”

WHO: Congressman Tim Ryan (OH-17), Senator Sherrod Brown (D-OH), and Ohio Department of Development Director Lisa Patt-McDaniel

WHAT: Press conference regarding recent International Trade Commission ruling re: tariffs on Oil Country Tubular Goods imported from China

WHEN: THURSDAY, JANUARY 7, 2010 at 1:30 PM

WHERE: Wheatland Tube Co.

901 Dietz Road NE

Warren, Ohio 44483

# # #

Clean Tech Market Watch

2010-01-07T08:40:00.000-08:00

I look at economic development through the lens of migration and workforce development. Does the Mahoning Valley have the talent it needs to be a leader in the Green Revolution? If not, where will this skilled labor come from? Retraining via federal government grants would appear to be the preferred answer to the above questions:

“The most exciting part of what’s happening here is that these programs are aligning with what Ohio communities and universities are doing to tap into the green economy and the green revolution,” said U.S. Rep. Tim Ryan, D-17 Ohio, who with U.S. Sen. Sherrod Brown, D-Ohio, joined Solis on a conference call to announce the grants. “Our manufacturing base isn’t just our past now, it’s our future.”

Ohio, Brown said, already has a skilled work force and “a rich manufacturing heritage. These funds are targeted for communities that have been hit hardest by job loss in the auto industry,” he continued. “They will lead to good-paying jobs and will help Ohio become the Silicon Valley of clean energy manufacturing.”

Greater Youngstown is betting a lot of resources on clean tech manufacturing and innovation. That's why I follow this storyline so closely. If you want to move back, then you best keep that in mind. Follow the money trail.

But is the region making a smart bet? A recent report highlighting the relatively robust venture capital investment in clean tech suggests that it is:

In a flurry of deal making bolstered by government subsidies for renewable energy, venture capitalists invested $5.6 billion in green technology companies worldwide in 2009, according to a preliminary report released Wednesday by the Cleantech Group and Deloitte. ...

... “In 2009, clean-tech went from a niche category to become the dominant category in venture capital investing,” said Dallas Kachan, managing director of the Cleantech Group, a San Francisco market research and consulting firm. “Clean-tech continued to outpace software and biotech.”

I emphasized the caveat in what looks to be good news for the clean tech sector. There's a debate about whether or not public investment in green jobs is sustainable. A good example is the natural gas market. Currently, there is a global supply glut. As a result, gas is a very cheap source of energy. Can clean tech compete?

The Mahoning Valley already has a substantial stake in the development of cheap natural gas, as represented by the proposed $1 billion expansion of V&M Star in Youngstown. That, too, is a big bet. You might see that as a good thing. The region is diversifying its economic portfolio within the energy sector. Looking at Pittsburgh, that strikes me as a good idea.

Mahoning Valley Goes to Israel

2010-01-06T10:10:00.000-08:00

The Regional Chamber is leading another international trip, this time to Israel. A large contingency representing a variety of interests will be making the journey. Just because I've read a lot about clean tech innovation in Israel, I'm interested in that angle:

The trip will include site visits and one-on-one meetings with Israel’s vast array of business incubators, including visits by Mayor O’Brien and members of the Warren Cleantech incubator steering committee -- Scott, Osterloh, Smith and Garvey -- to Cleantech incubators in Israel.

Israel is an entrepreneurship dynamo. Warren stands to gain a lot by going and learning from a global leader in clean tech R&D. I think this bodes well for the future of the incubator in that neck of the Mahoning Valley.

I recommend a close inspection of the economic geography of the Israeli incubators. There are likely a few aspects that can't be replicated, but the general clustering and proximity should be telling. Also, how do the incubators serve as economic drivers for the host communities? Warren has the opportunity to do something unique in the TechBelt and Israel is an excellent guide.

Energy Industries of Ohio

2010-01-05T12:54:00.000-08:00

As publicized at Brewed Fresh Daily, Energy Industries of Ohio will (once again) speak at the Youngstown Business Incubator. The 411:

Energy Industries of Ohio
“Supplier Opportunities for Clean Coal, Advanced Energy, Nuclear & Defense”

Thursday, January 28, 2010
3:00 pm
Youngstown Business Incubator
241 W. Federal Street, Youngstown

Nancy Horton, Project Manager for Energy Industries Ohio (EIO), will speak on the development of Ohio’s advanced materials supplier base for clean coal, nuclear power, advanced energy and defense applications.

RSVP to jmsmith@ybi.org

Looks to me like a must-attend if you are interested in Mahoning Valley and/or TechBelt economic development.

Expatriate El Paso

2010-01-04T13:05:00.000-08:00

Over at Burgh Diaspora, I look at the problem of the growing risk-averse population in the Rust Belt and consider two solutions. An emerging trend, shrinking city expatriates are returning home to rebuild. By way of adding another tale to the pattern, boomerang El Paso:

But a new trend is taking place at the start of the second decade of the 21st century. Many young professionals are deciding to make a difference in their community, and with it, enhancing the long-term growth and prosperity of El Paso.

"You see it in the young people moving back here for the kind of jobs El Paso has never had before or who come back to start businesses or families or projects," city Rep. Beto O'Rourke said. "You see it in someone like Jim Ward of Sleepercar, who because of his talent and standing in his industry, could live and work in any city in the world and yet chooses to make El Paso his home."

Mayor John Cook sometimes looks at the city representatives and thinks to himself, "I have a grandchild almost your age."

Cook, whose granddaughter is 27, realizes how important tomorrow's young leaders are to El Paso.

"New ideas are extremely important, especially those from young people who have gone off to college, lived in other communities, lived in other exciting cities and then come back wanting to make their city a better place, wanting to make a difference in their community," he said. "You will see more innovative young people coming back and saying, 'I didn't just get smart in college, I got ideas and I'm going to come back home and make my city a better place and make a difference."

Plugging the brain drain, keeping talent from leaving, is bad policy. Even if effective, the region will lack a fresh perspective needed to reinvent the economy. Deeply rooted natives aren't going to be agents of change.

Ohio workforce development initiatives make this mistake. Too much attention is given to local graduates moving out of state. Take the money that has been earmarked to slow the exodus of talent and apply it to luring the best and brightest back to Northeast Ohio. Why doesn't Joe Schiavoni fund what Tyler Clark is doing, instead of incentivizing graduates to stay? Why not facilitate another Eric Planey returning to the Mahoning Valley? I can tell you that all the brain drain initiatives being tried now have been tried before, and failed. Time to explore some different options.

ITC Steel Pipe Ruling

2009-12-30T11:30:00.000-08:00

Breaking good news for Greater Youngstown:

The Commerce Department is likely to issue an order Jan. 14 for U.S. Customs offices to collect duties that would counteract the subsidies, [International Trade Commission spokesman John Greer] said.

Seven U.S. producers of steel piping that is used in oil and natural gas wells, along with the Downtown-based United Steelworkers union, filed a trade complaint in April, claiming the subsidized Chinese products have hurt the industry and resulted in the loss of about 2,400 steelworker jobs.

The Business Journal has some additional information you can find here. Again, I'll point out that this steel product is important to the booming natural gas industry centered in Pennsylvania and New York. The close proximity to the Marcellus Shale Play is likely a key factor in V&M Star's decision about where to expand operations. I would speculate that the imposed duty makes the investment more likely, but doesn't necessarily privilege the Youngstown location.

Youngstown in Buffalo

2009-12-29T14:37:00.001-08:00

As a blogger, I often stumble upon curious and unexpected facts. Youngstown is a part of the Buffalo (New York) region. I'm not referring to the great steel city on the Mahoning River. I gather Youngstown is a suburb of Buffalo. When I'm searching for stories about the Youngstown in Ohio, every so often the place in New York pops up.

Yesterday's blog post afforded a similar serendipity. Youngstown Pride chimes in with an anecdote about immigrants improving a Buffalo neighborhood. Then, Defend Youngstown offers up PUSH Buffalo as a relevant neighborhood redevelopment model.

The very act of creating the blog post you are reading now yields the following find:

As a snow plow trudged its way over Delaware Park — designed from 1868 to 1874 by Frederick Law Olmsted and Calvert Vaux, the vision behind Central Park — Mr. Akauola, 53, warmed up in his black Ford Escape. He had walked only two laps — about 3.6 miles — in the park. “Normally, I go three to four rounds, but today it’s hard on your feet,” he explained. “You don’t want to mess up your ankles.”

A native of Tonga, Mr. Akauola, who works in construction, estimated that he is one of a very tiny number of people from the South Pacific living in western New York. (The two climates, of course, could not be more different.)

Mr. Akauola lived in Hawaii, where his two sons and daughter were born, from 1980 to 1985. His wife’s sister, who lived in the Buffalo area, suggested that the family settle here.

“When our first son was born, she gave us the idea,” Mr. Akauola recalled. “Buffalo was an affordable place to put your kids in school.” The three children are grown now. The younger son, who graduated from Rutgers University, lives in New Jersey; the daughter, an alumna of Arizona State University, works for an oil company in Houston.

This unexpected migration to Buffalo could just as easily occur in Youngstown. Missing are the folks who might encourage it. Why not Youngstown?

Youngstown Immigrant Innovation

2009-12-28T13:29:00.000-08:00

Update: Youngstown Pride points to a New York Times article about immigrants revitalizing a struggling Buffalo neighborhood.

Richard Herman passed along to me a link to an op-ed in the Cleveland Plain Dealer about the weak investment in the Fund for Our Economic Future. The Cleveland Foundation's hasty retreat is a mystery. Is the Fund not Cleveland-centric enough? One critique of the Fund, found in the op-ed, is a lack of leadership on the immigration front.

The Youngstown/Warren Regional Chamber should keep that in mind as it campaigns for a renewal of the Ohio Third Frontier program. Anything good can always be better:

Regional groups have told [Richard Herman] ''internationalization was not a top priority,'' he said. ''Immigration is kind of a dirty word here, and organizations don't want to use it.''

For instance, until a year ago, an Ohio Third Frontier-funded program for interns specifically excluded those who weren't citizens from participating.

''That was a bright sign saying, if you're an immigrant, don't come to Ohio,'' Herman said.

One regional mover and shaker who seems to get it is Rob Briggs, president of the Akron-based GAR Foundation, Herman said. He credited Briggs with some of the ideas in the book.

Briggs once convened ''the top believers in the region and asked them to produce an international talent blueprint,'' Herman said. Aspects of that effort are beginning to emerge around the region.

He pointed to the EB-5 Regional Center in Akron and Wooster (which speeds up the visa process for foreign investors of American businesses), an international welcome center being discussed between Cleveland State University and the Jewish Community Federation, and increased activity around international student recruitment and business recruitment (such as Akron Mayor Don Plusquellic's missions to lure foreign companies into launching American operations).

If the Mahoning Valley doesn't have an international talent blueprint, it better craft one ASAP. The Regional Chamber took a strong step in that direction when it hired Eric Planey. The trade trip to China is an impressive undertaking. What about an analogous workforce development strategy?

The "America First" mentality that James Traficant represents is alive and well in Greater Youngstown. Congressman Jason Altmire, TechBelt co-conspirator, has pandered to the anti-immigrant sentiment of his constituency on more than a few occasions.

Being tough on illegal border crossings and putting America's prosperity first don't preclude immigration as an economic development strategy. Too often, we throw that baby out with the bathwater. The debate is polarized as closed borders versus open borders. Or, you are either anti-globalization or anti-American jobs. These are difficult waters for politicians to navigate, but the issue is mission critical for a struggling region.

Spotlight on Warren

2009-12-22T10:55:00.000-08:00

All the natives won't move back to the Mahoning Valley, but there is more value in the expatriate community than just numbers. Those who leave have an easier time seeing a bigger region. Where you went to high school is still important, but not to someone born and raised in California. From far away, the fate of Youngstown and Warren are obviously intertwined.

The rapidly evolving story of the Warren advance-energy incubator should interest everyone in the entire TechBelt. Enter Rebecca Bagley, the CEO of NorTech (Cleveland):

Bagley, U.S. Rep. Tim Ryan, D-17 Ohio, state Sen. Capri Cafaro, D-32 Hubbard, state Rep. Tom Letson, D-64 Warren, and Mayor Michael O’Brien, outlined their vision Monday of what such an incubator might achieve in the fields of “advanced energy and flexible materials.”

Long on optimism and short on specifics, the four expressed hope the incubator will rejuvenate manufacturing in Mahoning Valley through infant enterprises that one day produce parts for windmills, geothermal, solar and nuclear energy plants and sources of energy other than petroleum, coal and natural gas.

You can find out more about Bagley's vision for Northeast Ohio here. You can also read more about NorTech's plans here. The effort dovetails nicely with the big energy sector push going on right now in Pittsburgh.

Warren could play a key role in the growth of this industry. That's good news for Youngstown and the entire Mahoning Valley. The bad news is the border between Ohio and Pennsylvania. NorTech covers Northeast Ohio, not the entire TechBelt. How Cleveland and Pittsburgh can work together is still a mystery.

Global Green Youngstown

2009-12-21T13:17:00.001-08:00

The greening of the Rust Belt is a big part of the vision for this megaregion's future. The primary reorientation is turning to face all the lakes, rivers and streams that used to serve as a dump for all the industrial waste. Green manufacturing is supposed to help along this transition:

Thursday in Copenhagen, U.S. Rep. Timothy J. Ryan announced what he's calling a ''transformational partnership'' between Youngstown and a national environmental group to foster green job creation and development in the rust belt city.

California-based Global Green USA will help speed along planning efforts in the city by building on the Youngstown 2010 plan and putting into place citywide and neighborhood specific greening plans.

The move, Ryan said, could position Youngstown to be a model green city for other Midwestern communities by, simultaneously, reducing its carbon footprint and by doing so, becoming an economic engine in the growing green industry.

''We are leading the green revolution,'' Ryan, D-Niles, said. ''This innovative collaboration will help to elevate Youngstown, northeastern Ohio and the Cleveland-Youngstown-Pittsburgh tech belt - opening us up for global investment in cutting edge green energy technology and sustainable development in our district.''

Not to diminish the gratuitous TechBelt reference, the Global Green USA partnership imagines a green city that serves as a redevelopment model. Youngstown is to be a test tube for sustainable urban design. Helping to fund this initiative is a member of the Youngstown Diaspora:

Jack Scott, a former Youngstown resident who runs a technology company in the Salt Lake City area, and the Raymond John Wean Foundation each contributed $25,000 to this program.

Scott's name rang a bell. He was involved in the Sustainable Energy Forum held last summer at Youngstown State University:

Abraham credited YSU alumnus Jack Scott with being the driving force behind the conference.

Scott earned a degree in mechanical engineering and worked his way up to become president and chief operating officer of Parsons Corp., a California-based engineering and construction company that has $3.4 billion in annual revenues.

Scott said he has a passion for sustainable energy, but he wanted to hold the conference in Youngstown because of his love for the Mahoning Valley and its people.

“One of the greatest assets of this area is the work ethic,” he said. “We hire people from all over the world. You can always tell people who were hired from this area.”

Scott said the forum has to produce action to be a success. The goal is to link researchers with innovative ideas to people who can bring those ideas to market, he said.

Discussions are to be held today on how to continue the collaborations, he said. Also, he and other organizers will meet Wednesday to review the effort and talk about the future.

The issue of sustainable energy is critical for the nation, Scott said. The nation needs to rebuild its manufacturing base to remain an economic power, and a new opportunity is to produce parts for wind turbines, solar panels and other new forms of energy, he said.

The nation should not rely on other countries for these forms of power as it has done with oil, he said. The U.S. sends nearly $1 trillion a year to Saudi Arabia and other oil-exporting countries.

“It’s the single biggest transfer of wealth in the history of the world,” he said.

Scott is an archetype for the region's diaspora economy. One needn't reside in the area to benefit the Mahoning Valley. Scott's success and expansive network are assets for his hometown.

Blog Release: Round Two of EfficientGovNow to Offer $330,000 in Grant Awards to Government Collaboration Projects in Northeast Ohio

2009-12-18T11:15:00.000-08:00

The Fund for Our Economic Future, a collaboration of philanthropic entities working to strengthen the region's economic competitiveness, introduced EfficientGovNow earlier this year to encourage greater government collaborations and engage the public to advocate for change.

EfficientGovNow is a competitive grant awards program that encourages and accelerates government collaboration and efficiency by providing rounds of funding to government collaboration projects as selected by YOU, the residents of Northeast Ohio.

The first round of the program, held in early to mid 2009, attracted more than 255 local governmental entities to submit ideas for collaborative projects. Collectively, the projects estimated one-time savings of nearly $40 million and anticipated annual savings of more than $22 million – dollars that can be used to grow and/or attract businesses, provide more education and training, or spent in other ways that grow the economy.

Equally exciting, you, along with nearly 13,500 other Northeast Ohioans, voted in support of the ideas. You participated in a way that motivated government officials to continue to seek ways to collaborate and become more efficient.

That is why, earlier this month, the Fund announced a second round of EfficientGovNow – this time offering $330,000 in grant awards.

RIGHT NOW is your chance to help get this round started. Check out 10 easy ways Northeast Ohioans can spur the second round of EfficientGovNow. Getting engaged is as easy as e-mailing a government official, following EfficientGovNow on Twitter or Facebook, or forwarding EfficientGovNow news coverage to a friend.

Your voice is essential to this effort. Help spur greater government collaboration -- help advance the economic revitalization of Northeast Ohio.

Ragnarök Youngstown

2009-12-16T21:58:00.000-08:00

Once again, Mahoning Valley misery is national news. You've seen the images a thousand times. If not in Youngstown or Warren, then in Detroit. The new round of photos don't look so fresh. They haven't for 30 years:

In this corner of northeast Ohio, from Warren to Youngstown, where the old steel mills along the Mahoning River stand like rusted-out mastodons in the weeds, the recession was a final cruelty piled on top of three decades of disappearing jobs. ...

... The road from Warren and Youngstown is a graveyard of silent machines behind chain-link fences. Near the Pennsylvania border, this 25-mile stretch along the Mahoning River was the world's fifth-largest producer of steel until the late 1970s, when more than 50,000 jobs vanished in a decade. The General Motors plant in Lordstown, which employed 14,000 in the 1970s, is down to about 2,500 workers.

Every time globalization goes into one of its funks, some journalist is grasping for the final nail in this region's coffin. The angle is the same, as are the images. It is cliché, the latest downturn providing another excuse to dredge the Mahoning River for the body of Industrial America.

The real story, if you can pry your eyes away from the urban blight, are the changes. The "final erasure" is the burial of the glory days, a blank slate. However, a writer can't look at the current pain without relating what happened in the late 1970s. This isn't the flaking gild of the Golden State or dramatic collapse of Motor City. Thus, everyone overlooks the transformation in order to provide another glimpse of a crumbling steel mill. It's supposed to be a sign of the times.

These aren't the last days of disco.

Rust Belt Porn

2009-12-16T14:32:00.000-08:00

I figure most people are familiar the pejorative usage of the term "Rust Belt". The image is one of deep economic malaise and over-dependence on anachronistic industry. These shrinking and decaying cities are stuck in a permanent recession. The stubborn stereotype:

Pittsburgh was devastated by the collapse of the domestic steel industry, but reinvented itself through education and medicine, and has done relatively well in recent years. Local unemployment is now at only 7.7 percent, well below the national average. However, there are limits to Pittsburgh’s recovery, and the city’s many college graduates often move away in search of work.

The current Pittsburgh renaissance deserves an asterisk, but not for the reasons stated. When anyone thinks of a Rust Belt city they include population decline. That's still the Pittsburgh bugaboo, the dreaded brain drain. This is the most persistent element of Rust Belt mythology. It's also the most erroneous.

Here is Youngstown at the bottom of another list (top US cities for business):

In late 2008, Youngstown was deemed by Forbes to be one of America's fastest-dying cities.

"It's not shocking," said Albert Sumell, assistant professor of economics at Youngstown State University. "Obviously, we haven't had good news in a while."

But, he says, the city is showing signs of life. While Youngstown is shrinking in size, it's embracing its smaller future, not just simply expecting it to come back. The city has set up a business incubator that is trying to encourage tech-oriented companies to get started there, and its downtown region is undergoing enough of a renaissance that The Economist magazine recently said it may have turned a corner.

"I think in some ways, our history is worse than our future," Sumell said. "I honestly believe our reputation, nationally, is worse than our potential."

Youngstown does have one Russell 2000 company in its metro area, Stoneridge Inc. (SRI 8.05, -0.10, -1.23%) , a maker of electrical components for cars, in suburban Warren.

But for now, the city is at least in the bottom third in all metrics, the bottom fourth in nine of 10 metrics and the bottom 10% of three. Its growth and job numbers are low, and the city struggled mightily to retain jobs during the past year; it was sixth worst in that metric.

The problem is in the methodology:

We also checked population growth since 2000 and measure job growth against population growth from the beginning of the decade to July 2008, the latest population data available.

In and of itself, population growth isn't a useful way of measuring health. A shrinking city such as Pittsburgh is still being punished for an exodus that happened 25 years ago. That out-migration still defines the city. Youngstown is similarly defined more by its past than the current state of affairs. The legacy costs are staggering. The ranking analysis also suggests the city is a victim of its own geography. The agglomeration economies of larger cities provide them with a comparative advantage.

Many of the metrics used strike me as outdated, a relic of the industrial economy. The booming population of Nigeria doesn't make it an economic power. Despite the loss of people, Pittsburgh is ranked 23rd on the list. So the supposed brain drain becomes the scar on an otherwise glowing review. A Rust Belt city can only go so far, so fast. But that is only a problem if the residents believe it to be true.

Youngstown, believe in Dream City. The measures you see above capture the past, not the future. Take it from someone who still hears the tired refrain, "At least we're not in Pittsburgh."

Myths of Brain Drain

2009-12-15T09:34:00.000-08:00

As a Rust Belt refugee, I obsess brain drain policy. This preoccupation has developed into a successful blogging niche. I've been studying this issue for about 3.5 years and I continue to notice a steady flow of false information about a perceived brain drain problem.

A declining population is often used as a surrogate for brain drain:

The other two sectors to enjoy significant growth have been education and health. Yet these fields do not seem to generate the broad-based economic growth needed to boost the overall economy. The region most often favorably linked with the "eds and meds" economy, Pittsburgh, has produced only modest, below-average job growth over the past generation. In fact, Pittsburgh has looked successful largely because the region has continued to hemorrhage its population to other regions, and it attracts few foreign immigrants.

To be frank, the above assessment is bogus. The analysis barely scratches the surface of the demographic story. Pittsburgh did "hemorrhage its population to other regions" back in the early 1980s. But the overall population decline over (at least) the last decade is a result of an aging population dying off and an anemic replacement rate (that does connect to the lack of immigration). Joel Kotkin's claim is wrong and he should know better. I gather he hasn't digested the articles I have written for his website.

Kotkin is in good company. Jumping to brain drain conclusions is the rule, not the exception. Few seem interested in drilling down into the numbers to get a better idea of what is going on in the region. A recent study of rural brain drain is an excellent example. Minnesota Public Radio recently tackled the issue and unearthed some surprising results:

Given this refreshed view of changing demographics, rural America needs to rethink its description of gains and losses. If rural America is losing high-school educated youth (the brain drain) and replacing them with those that at least have a bachelors, isn’t this a Brain Gain?

Indeed, this is brain gain. But Kotkin and others are too busy trying to shoehorn their preferred narrative to notice. The result is misguided policy and government waste, which is ironic given the dominant perspective of many brain drain fear mongers. The rush to judgment only serves surreptitious ends. Brain drain talk is a popular political football. Beware when politicians and pundits invoke the term.

Expatriates in the News

2009-12-14T13:51:00.000-08:00

Occasionally, I see a story about someone successful who used to reside in the Greater Youngstown region. In Scranton:

As a senior executive for the Boy Scouts, Mr. LaPolla raises money, organizes new troops and packs, recruits volunteers and scouts. He has worked for the local council for six years, and worked for five years before that for Boy Scout councils in Colorado and Ohio.

"This is my last stop. My wife told me she'd divorce me if we had to move," he joked. "This area to me is thriving ... I'm not leaving here, I love it here and I want to make a difference."

A native of the Youngstown, Ohio, area, he and his wife, Jacqueline, moved to Scranton six years ago and are expecting their first child in February.

"I want to get more involved in politics in the state, with what's going on," he said. "Now that I'm established here in this area, and I'm expecting my first child, I want to make sure our state is on stable financial ground for my child and everyone else's child and their future children as well. Right now, I don't think our state's on that right path. I want to get involved and try to do my best to correct that."

Mr. LaPolla would fit our migration model in terms of ending up in another Rust Belt city. He also has made at least two moves since leaving Youngstown, which makes tracking the Diaspora difficult. I'd bet his first move was to another city in Ohio.

I also wonder if his wife is from the Scranton area. Couples starting a family often boomerang back to the expectant mother's hometown to be near her family. In other words, the trailing spouse is usually male. The better policy approach is to network female talent.

Mahoning River Salmon

2009-12-11T09:17:00.000-08:00

On Wednesday, I mentioned the recent NEOtropolis episode about regionalism in Northeast Ohio. I managed to carve out some time to watch the show that night. Towards the end, the panelists briefly discussed "salmon".

Salmon are the people who left the area only to return, among other reasons, for spawning. I gather that the policy wonks are familiar with the boomerang migration trend, going so far as to highlight this demographic as prospective entrepreneurial talent. However, I think the idea was to lure back expatriates who are established entrepreneurs.

The words of the panelists encouraged me. There would seem to be some interest in the boomerang migrant incubator project. I'll remind you of the singular motivation of salmon to travel back to the place of their birth. Channel that energy towards economic redevelopment.

Tim Ryan Hits Home Run

2009-12-10T09:45:00.000-08:00

I've anguished over the location of the proposed green energy incubator. In my view, downtown Warren is the ideal place. This would mimic the economic geography of the Youngstown Business Incubator and serve as an anchor for the urban core. Another example is the Greensburg Business Incubator:

Gary Smith, who works in the Kansas office of the USDA, helped plan the Greensburg Business Incubator. Smith says the first step for planners is to ask, "What does the community have that they want to build upon?" In the case of Greensburg, it was the community's shared vision of rebuilding after its disastrous tornado. A traditional business incubator serving as a downtown anchor fit that vision. Additionally, the city was eligible for disaster funding to finance the incubator.

I like downtown Warren, but so much more could be done to revitalize it. A strong city center can do wonders for the entire region. Consider Wooster:

Invest in downtown. Town centers are the communal heart. Too many Midwestern towns let their main streets go to seed. More than anything, this reveals a community that just doesn't care anymore. Who wants to invest in a town with a slum at the center? Columbus, Pella and Wooster look like the good places they are. Wausau may have economic problems, but you'd never know it from its beautifully rehabbed downtown.

Warren is headed in that direction but a recent announcement by Congressman Tim Ryan suggests that this small city is ready to put economic development into overdrive:

The officials said they want to bring the kind of benefits downtown Youngstown has enjoyed from the Youngstown State University’s proximity to the central business district. Ryan said the campus would tie in with the “green” energy incubator being developed in downtown Warren.

“This is the catalyst,” he remarked. In the future, this will be the day that people point to when they ask when did Warren change, he said.

The campus would be located somewhere on Courthouse Square, Ryan said.

That kind of vision is a game-changer and positively plugs Warren into globalization. The ideal location of an institution of higher education is downtown. Innovation thrives in dense areas of face-to-face interaction. Pack it all in as tightly as you can. Let the proposed community college campus house the incubator, introducing students to green entrepreneurial opportunity.

Downtown Warren is now positioned for a jump start. Kudos to Ryan and Governor Ted Strickland for realizing downtown's potential.

Greater Youngstown Includes Cleveland and Pittsburgh

2009-12-09T09:33:00.000-08:00

Via the Cuyahoga County Planning Commission blog, NEOtropolis tackles regionalism for Northeast Ohio. That issue finds an echo in the latest edition of PopCity (Pittsburgh):

We can still diss the Browns and cheer for the Steelers, but Pittsburgh and Cleveland simply must work together on economic development and that's what the Tech Belt Initiative is all about. Replicating the Research Triangle in North Carolina and Silicon Valley, Congressmen Jason Altmire (PA-04) and Tim Ryan (OH-17) established the Tech Belt Initiative and its 134 miles of economic opportunity between Pittsburgh and Cleveland. Over the past several years, the Pittsburgh Life Sciences Greenhouse, BioEnterprise in Cleveland and a host of other organizations have repeatedly joined forces to draw more venture capitalists to our area and to facilitate collaborations between research firms in both states.

The Tech Belt covers 7.2 million people, making it the 4th largest industrial/technology region nationally, with a potential economic impact of more than $1 billion in annual academic R&D. Currently, 700+ companies employ over 25,000+ in bioscience enterprises alone.

Who were the key drivers? Top of the list is John Mancini, President of the Pittsburgh Life Sciences Greenhouse along with various foundations and organizations include the McCune Foundation, the Raymond John Wean Foundation, Allegheny Conference and the Pittsburgh Technology Council.

I recently heard a rumble that the TechBelt Initiative is soon to take wing. To what end? That's a good question that Aaron Renn has tackled:

I’m willing to be convinced. I clearly see the benefits of regional cooperation on a metro or economic area basis. Even there, however, we’ve seen significant challenges operationalizing even that idea. To really justify significant time and effort being spent on mega-regionalism beyond the quick and easy idea exchange variety, I think a specific program of recommended actions and the type of results we should expect to see from them needs to be put forward. Otherwise I’m inclined to view mega-regionalism in the Midwest as dinosaurs mating. Rolling up a bunch of weak players won’t make a strong one.

As you might note, Aaron is looking at mega-regionalism. I think his critique applies equally well at a smaller scale such as the TechBelt. I don't agree with the "dinosaurs mating" simile. The issue is competing for a slice of a shrinking economic pie. When Cleveland sees Pittsburgh as a competitor, both cities lose:

To distinguish its red-carpet tours, Team NEO crafts attention-grabbing invitations. For the tour during the Rock Hall's induction weekend, invitees received small guitar cases with invitations tucked inside.

"We are competing for these jobs against Indianapolis, Detroit, Pittsburgh," said Team NEO's Carin Rockind, vice president of marketing and communications. "We have to break through."

The parochial barriers to cooperations are significant. The biggest loser in this pride tug-of-war is Youngstown. If Cleveland is fighting with Pittsburgh for "these jobs", then those positions are more likely to end up outside of the TechBelt. Whether they end up in Cleveland or Pittsburgh is of little consequence to Youngstown. That's why it makes sense that the TechBelt is Tim Ryan's baby.

Even the Mahoning Valley has a long way to go concerning regional thinking. Need I remind you of Girard v. Youngstown? The turf war didn't benefit either city. That is what is at stake with the TechBelt Initiative.

Geographic Arbitrage Revisted

2009-12-08T08:55:00.000-08:00

The Business Journal Daily relates a story about Youngstown being a good place to get the best bang for your buck. Unfortunately, cost of living advantages have had little influence on talent migration. On the contrary, people continue to cram into global cities with little regard for price. (Via TechBurgher) That trend may be changing:

A lot of our uncertainty revolves around money, and our realization that we can't afford to buy a home here. That fact, rightly or wrongly, has become a touchstone for other uncertainties -- about finding a neighborhood we can stay in for the long term; about having good school options for our two-year-old daughter; about making enough money to afford the high cost of living without giving all of our waking hours over to work.

As in many distressed relationships, there's a third-party involved. In this case it's the seductive call of some smaller, more livable city.

I'd note that the article looks at a particular adult life stage demographic, when career opportunities begin to play second fiddle to other concerns (e.g. quality of school district). The typical migration is to the wealthy suburbs of Big City. But the place swap described is a downgrade in the global urban hierarchy. I think this aptly describes the ideal boomerang migrant that would return to Youngstown.

Regarding the coveted young and educated adult demographic, I wrote a post recently about it. The quote of note is from a Christian Science Monitor article:

Demographics will drive change, too. Cities that have expensive housing may find themselves at a disadvantage in attracting young people. “We’re going to be facing what I call the third civil war – it’s going to be a war between cities and metro areas over where young people will settle, because we’re going to have to fill a lot of jobs,” says Barry Bluestone, an economist at Northeastern University in Boston.

Many of these young workers will be going to places where they sense a think-outside-the-box culture. “It’s hard to be a dynamic economy if you’re a culture that does not tolerate risk,” says Susannah Malarkey, who heads a trade group, the Technology Alliance, in Seattle.

Everyone knows that Youngstown is an inexpensive place to live. What few people realize is the risk-taking culture that has taken root downtown. I don't think this would appeal to graduates fresh out of college, but it could attract young talent looking to accelerate a career after cutting their teeth in Big City.

Again, the migration trends overwhelmingly favor attraction strategies. Trying to keep graduates in town or in state is foolish. The research continues to support this critique. The game is to understand how relocation strategies are changing and then position your region to take advantage of them. Building a wall around Ohio is not the answer.

Promoting Rust Belt Chic

2009-12-07T08:51:00.001-08:00

Phil Kidd and Defend Youngstown receive a nice plug in a recent post over at Rust Wire. The personality and hospitality of the Mahoning Valley vanguard is one of the area's greatest draws. Daniel Denvir makes a reference to another regional asset:

The news format of these articles did not allow me space to describe a lot of what I liked so much about these cities. My time in Cleveland was too short, so I can’t say I really got to know it. But my visits to Detroit and Youngstown sparked some real affection for these struggling locales–along with their bars and delis. In Youngstown, this was all due to the unparalleled hospitality offered by Defend Youngstown impresario and Mahoning Valley Organizing Collaborative organizer Phil Kidd–really enough reason in and of itself for my sure to be soon return visit. And the next time I do this trip, I’ll have to do a series on Rust Belt bars. Because on a personal note, they were amazing. And microbrews like Youngstown’s Rust Belt Brewing Company certainly qualify as a creative and delicious alternative.

The emphasis added is my doing. There is an curious tension within the group that seeks to revitalize America's industrial heartland. Some see the term "Rust Belt" as a pejorative and reinforcing negative stereotypes holding back so many shrinking cities. On the other side are those who celebrate the same world Anthony Bourdain explored in Baltimore, Detroit, and Buffalo for his show "No Reservations":

I think that troubled cities often tragically misinterpret what's coolest about themselves. They scramble for cure-alls, something that will "attract business", always one convention center, one pedestrian mall or restaurant district away from revival. They miss their biggest, best and probably most marketable asset: their unique and slightly off-center character. Few people go to New Orleans because it's a "normal" city -- or a "perfect" or "safe" one. They go because it's crazy, borderline dysfunctional, permissive, shabby, alcoholic and bat shit crazy -- and because it looks like nowhere else. Cleveland is one of my favorite cities. I don't arrive there with a smile on my face every time because of the Cleveland Philarmonic.

Bourdain's post is the best description of Rust Belt Chic I've encountered and aptly characterizes Denvir's fascination with Rust Belt bars. It's about an authenticity of place taken out of context by a younger generation with little to no connection to the world that produced the social environment.

In Youngstown, Rust Belt Chic exists in the relics of the steel industry. It is in the ethnic food from countries that no longer send immigrants to the area. It's captured in ruin porn or on display during a local high school or college football game. Most importantly, Rust Belt Chic is a brand that can attract Generation Y talent.

Like Bourdain, I'm perplexed as to why no place has cashed in on this marketing opportunity. Instead, we obsess the negative publicity misrepresenting our city or chase the title of the next Silicon Valley. Where else can you buy a Daniel Burnham designed building for under $150,000? Is there a better place to headquarter an initiative to revitalize America's great industrial cities?This is a tremendous opportunity, not an indicator of how far Youngstown has fallen. Of course, that depends on how you feel about the term "Rust Belt".

Mahoning Valley Diaspora Economy

2009-12-04T14:16:00.000-08:00

GlobalErie has a motto, Putting Erie's Brain Drain to Use. What does it mean? I interpret those words as a way for a region to benefit from the talent that has left to explore opportunity elsewhere. Today's news from the Mahoning Valley provides an excellent example of the practice:

As he stood among business and civic leaders on a cold Thursday afternoon in his hometown, Warren native Mark D. Marvin discovered one essential he will need to do business here -- a coat.

“I live in New Mexico and it’s typically sunny there,” he said at an outdoor media event to announce that his company, Reinforcement Solutions Inc., would build a new manufacturing plant on West Market Street. Marvin, a 1983 graduate of Warren Harding High School, is president of The Marvin Group Inc. and owns Reinforcement Solutions.

The company, now based in Allentown, Pa., makes resistance-welded wire reinforcement, which is used to reinforce concrete structures, said William C. Gallenz, Reinforcement Solutions president. “Anything from highways, tunnels, high rises -- any concrete structure you see” could potentially use the company’s product, he said.

“We did a lot of research and kept coming back to this area and saying, ‘Why not?’” he affirmed. “We know there’s good labor here,” which was another “big factor,” he added.

New Mexico is a long way from Warren, Ohio. As our research shows, rare is the individual who moves so far from home. As other research demonstrates, she or he who moves so far from home tends to make an excellent entrepreneur. Finding and networking these talented expatriates for economic development in the Mahoning Valley is the mission of Greater Youngstown 2.0.

I have no doubt that the native connection was instrumental in making this deal happen. There are a bunch more deals like it if the region is willing to connect with its Diaspora. Put Youngtown's brain drain to use.

Brain Drain Policies

2009-12-03T08:52:00.000-08:00

Given the high rates of unemployment across the nation, now would seem to be a strange time to worry about brain drain. But that's exactly what California is doing. The alarm isn't about what most would expect. The issue is a looming talent shortage. There won't be enough qualified people to fill all the expected job openings and businesses are willing to move wherever they can to find an ample labor pool.

I don't think Ohio's leadership is making the problem clear enough for residents. I'm sure the latest proposed policy to plug this state's brain drain won't work:

Ohio college graduates who stay in the state would be eligible for 10 years of income-tax breaks under legislation introduced in the Ohio Senate.

Sen. Joe Schiavoni of Canfield, D-33rd, offered Senate Bill 198 with hopes of keeping more science, technology, engineering and math degree holders in Ohio, to whom the incentive would be directed.

“We all know that brain drain is a major problem facing our state today,” Schiavoni told members of the Senate’s ways and means committee. “I’ve seen it firsthand as many of my friends, neighbors and former classmates decided to pursue careers in other states. Some of our best and brightest leave Ohio and never come back.”

I won't bore you with my usual sermon about the folly of trying to keep graduates from leaving. The idea is to provide incentive to stay. Look at the legislation from a cost-benefit angle. All the qualifying students who would have stayed regardless of the tax break will cash in on the opportunity. The numbers of those who stick around often surprise the casual observer. Typically, more stay than go and state is proposing to pay all those people in hopes of getting more to seek employment in Ohio.

The proposed policy amounts to nothing more than a tax cut for a fiscally strapped Ohio. It won't generate or attract new business and jobs. And graduates will continue to leave the state at roughly the same rate. In fact, the exodus might get worse before it improves.

Geography of Angel Investors

2009-11-18T14:20:00.000-08:00

Update: If you would like to learn more about the geography of innovation, watch the webcast for the Pittsburgh Technology Council / Innovation Works Public Policy Forum detailing President Obama’s “Innovation Strategy” on Thursday, November 19 fro 8:30 to 9:30 a.m.

Urban agglomeration is one of the defining features of globalization. People and firms will bear very high costs in order to benefit from the proximity advantage. I think this is a function of trust. Deals happen and knowledge exchange occurs thanks to a face-to-face interaction. A story about angel investors in The Business Journal is a great example of this kind of behavior:

Angel investors bless entrepreneurs with capital and the know-how to build successful companies, and bless communities with new jobs. Securing funding from angel investors, however, is no easy task, says Catherine V. Mott (WATCH VIDEO), president, CEO and founder of BlueTree Capital Group and BlueTree Allied Angels in Wexford, Pa., a suburb of Pittsburgh.

Mott, who holds an MBA in finance from Youngstown State University, returned to her alma mater Nov. 17 to discuss angel venture capital with students, faculty and members of the community as part of the Williamson Symposium series. ...

... BlueTree Allied Angels focus on “early stage technology companies,” 50% of which are in the healthcare and life sciences fields. That’s because there is a heavy concentration of companies in those disciplines in the Pittsburgh area and angel investers typically invest “in their own backyard,” Mott said.

They invest in the company’s very early stages, “right after family, friends and fools,” and want to be involved in the business to help ensure its success and a return on their investment, Mott stressed. So, she explained, they typically don’t invest in companies outside of a two-to-four hour’s drive. “They want to be able to ride past and see that the lights are on.” Mott described the angels’ involvement in the startups they fund as “an active watching of their money.”

That reach would make angels less risk averse than your typical venture capitalist, many who employ the 20-minute rule:

Meet the “20-minute rule” that guides fateful decisions in Silicon Valley. Craig Johnson, managing director of Concept2Company Ventures, a venture capital firm in Palo Alto, Calif., who has 30 years of experience in early-stage financings, said he knew many venture capitalists who adhered to this doctrine: if a start-up company seeking venture capital is not within a 20-minute drive of the venture firm’s offices, it will not be funded.

Mr. Johnson explained that close proximity permits the investor to provide in-person guidance; initially, that may entail many meetings each week before investor and entrepreneur come to know each other well enough to rely mostly on the phone for updates. Those initial interactions are fateful. “Starting a company is like launching a rocket,” Mr. Johnson said. “If you’re a tenth of a degree off at launch, you may be 1,000 miles off downrange.”

Capital and attention are lavished on entrepreneurs in the Valley as in no other place. Ten years ago, when Dow Jones VentureOne began a quarterly survey of where venture investments landed, one-third of all deals in the country went to the San Francisco Bay Area. Since then, the same share of deals has gone to the same place, almost without variation. Most recently, in the first six months of this year, Silicon Valley still pulled in 32 percent; the region with the second-largest total, New England, was far behind, at 10 percent.

The concentration of venture capital in a few places is textbook urban agglomeration. There are downsides to this economic geography. First, the cost of living or doing business goes up dramatically as more ambitious people cram into an innovation hub. Second, the investment market is limited and dramatic returns are increasingly rare. How might some of this money find its way out of Silicon Valley and well beyond the 20-minute limit?

AnnaLee Saxenian answered this question in her book "The New Argonauts". Foreign born entrepreneurs in Silicon Valley would return home and take the trust of venture capitalists with them. Of course, some of them are the venture capitalists. They move to Israel or India in order to be closer to the investment. On the backs of these cosmopolites, Silicon Valley expands its reach.

Which brings me back to Catherine V. Mott. She represents an opportunity for Pittsburgh venture capital to explore the Mahoning Valley. Mott leaving Youngstown could be a good thing if locals understood her willingness to give back to this community. Her success in another city should be cause for celebration. Mott is the exception to the proximity rule, which is what Greater Youngstown 2.0 is all about.

Study Abroad in Ohio

2009-11-17T08:47:00.000-08:00

International education is big business. Ohio is no exception. But the global churn of highly-skilled talent is also vital for local economic development:

"It's really critical to the economic future of Ohio because the businesses that operate in Ohio know they have to compete globally for customers and sales," Chancellor Eric D. Fingerhut said yesterday. "They need employees who can work with their international counterparts and students who have global exposure and understanding."

Too bad the Ohio leadership doesn't apply this framework to domestic migration. The talent exchanges with other states are just as important as the global connections. Brain drain hysteria tends to rule even the most open and well-educated minds.

Regardless, there is a more pressing issue:

In his office, Dr. Snider pulls out a placard and points to a shaded zone representing a 30-minute drive to campus, the area responsible for more than 80 percent of the campus enrollment. The problem, he says, is population in that zone is projected to decline by 12 percent through 2016.

"We have got to supplement that with other populations," Dr. Snider said. "International students, because of the value they add through diversity, are a terrific opportunity."

I'm still struck by the obvious about face from the typical brain drain narrative. Why is the attraction imperative so obvious to university administrators but lost on politicians? Declining student populations are a big threat to the eds and meds economy. This puts a different spin on Pittsburgh's proposed tuition tax, which seeks to meet ballooning municipal pension obligations via the local higher education industry.

I doubt this surcharge would affect enrollment, but it does make clear the struggles to reconcile a shrinking city with vibrant local universities and colleges. We're still not sure how to best leverage these regional knowledge engines given the growing disconnect between those locally trained and those locally employed. There seems to be little interest in the network located outside of the state and the economic opportunities it presents.

I'll just keep scratching my head.

Get Your Globalization Game On

2009-11-15T22:03:00.000-08:00

Jon Meacham ends his introduction to the November 23rd issue of Newsweek with the following sentence:

Globalization is not a zero-sum game, but we need to hone our skills to stay in play.

This month, I've been looking to the Greater Youngstown media to help the Mahoning Valley hone its skills for the globalization game. A column in the Sunday Vindicator suggests that the local reporters are not up to the task. Bertram de Souza thinks that US President Barack Obama should intercede on the Valley's behalf concerning the location of V&M Star's pending expansion. Read Eric Planey's comment, which explains the fundamental misunderstanding of the situation informing the opinion piece.

Houston is one of the sites in the running. Another option is Muskogee, Oklahoma. Given this report, also in the Vindicator, the reader might wonder if all the incentives are necessary. That issue deserves some commentary. Consider what James Duderstadt (director of the University of Michigan's Millennium Project) has to say about such an approach to economic development:

It's basically stupid. We hear over and over from companies thinking of moving here that they don't relocate because of tax breaks. People are going to move here for other reasons, such as the quality of life. Or access to markets. Or because it's a beautiful place to be.

Duderstadt knows a lot about globalization. I'd weigh his words carefully. The article by David Skolnick indicates that the access to markets is very important to V&M Star:

Top officials with the Vallourec Group, V&M’s parent company, met Nov. 2 with Youngstown Mayor Jay Williams at its Paris world headquarters to discuss the proposal. ...

... Among the areas mentioned, Williams said the Valley best suits the company’s needs if it expands.

Williams said Vallourec officials mentioned those assets during the Nov. 2 meeting: the company already has a facility here that employs more workers than its two other North American locations combined; the Valley workforce; the financial incentives put together by Youngstown, Girard and the state; and the proximity of Youngstown to V&M’s main customers in New England, New York, Pennsylvania and the Carolinas.

V&M manufactures seamless tubes used mostly in the oil and gas industry.

To me, that sounds like a slam dunk; and I don't mean the financial incentives. I'm still waiting to read how the Marcellus Shale natural gas play is factoring into V&M Star's plans. Perhaps I'm connecting the wrong dots, but the Mahoning Valley journalists are doing little to flesh out a billion dollar story. The scale of context is too small.

Brain Drain and Globalization

2009-11-13T09:25:00.000-08:00

Akin to the benefits derived from the liberalization of trade, increasing geographic mobility can improve economic development. Of course, as is the case with globalization, there are perils. Losing talent to another region is costly. Protectionism, which is often more destructive than the alternative, isn't the answer. Instead of impeding out-migration, work with the established flows:

There is much more here – it’s a great collection of news and resources that will be of interest to Donegal people at home and abroad. If only more counties would produce such resources – this is a model that would be very useful throughout Ireland.

Read the publication online on the Donegal County Council website.

Donegal, a rural and isolated part of Ireland, isn't going to reverse the demographic trends. Born of necessity, the region has developed an innovative form diaspora economics. I'm amazed that US communities experiencing similar population decline haven't noticed. One can't embrace the shrinking city paradigm and launch a crusade to plug the brain drain. The factories will not return. Neither will the numbers of people seen during the peak of industrialization.

Diaspora means scattered. The community is dislocated from its place of birth. That kind of consciousness isn't fostered in the Rust Belt. This perception is divorced from a global context. The rest of the world is something to be held at bay. Those who leave are lost in an abyss. The result is that globalization continues to ravage the Midwest and brain drain stifles innovation. Opportunity is some place else.

Undermining the Youngstown Advantage

2009-11-12T09:11:00.000-08:00

I'm going to break with the globalization and international migration theme to address a situation of grave concern. First, you should be made aware of the emerging economic redevelopment paradigm of urban frontier. To say that this understanding of shrinking city opportunity resonates with a lot of people is an understatement:

From the I'm-going-to-find-a-rainbow-in-this-dark-cloud-if-it-kills-me school of journalism comes this celebration of the disaster that is Detroit.

Titled Urban "Laboratory and the New American Frontier," it sees the crumbling city as an opportunity to be seized on.

One thing this massive failure has made possible is the ability to come up with radical ideas for the city, and potentially to even implement some of them. Places like Flint and Youngstown might be attracting new ideas and moving forward, but it is big cities that inspire the big, audacious dreams. And that is Detroit. Its size, scale, and powerful brand image are attracting not just the region’s but the world’s attention. It may just be that some of the most important urban innovations in 21st century America end up coming not from Portland or New York, but places like Youngstown and, yes, Detroit. ...

... Maybe it's not for everybody, but that's the whole point. The American frontier wasn't for everybody, either, just the ambitious, the adventurous or the desperate. Such is Detroit.

Detroit isn't the archetype of the urban frontier. That designation goes to Youngstown. However, Tyler Clark suggests that this unique opportunity landscape is under siege:

Last week it was announced that the City of Youngstown received a grant to pursue a deconstruction program related to the dismantling of vacant structures. Steve Novotny, currently interning with the city while finishing his degree at Youngstown State, wrote the $39,000 grant proposal for management of the project and is being looked at to lead the program. ...

... I think the key paragraph comes in the last part of the quoted Vindicator article: David Bozanich "defended the plan to hire Novotny." Defended against whom? Nowhere is there an assertion that anyone is questioning Novotny's fitness to lead the program. Anyone except The Vindicator, perhaps.

Notice, too, the title of the article: "Youngstown council to weigh plan to hire YSU student." It suggests, "Read me, you may find out about another questionable expenditure of funds at City Hall." Yet, no funds are being spent except those Novotny himself applied for and won. And no one is quoted as objecting to or even hinted at questioning the decision to hire the 24-year-old for the program.

Also, note Eric Planey's response to Tyler's blog post:

The area cant grow if there is no risk taking. There will be no risk taking if we as an area collectively assault the new. Some senior at YSU took an initiative on urban planning? Good for him/her. The city wants to hire that person? Sounds good to me...fresh minds / fresh ideas.

For Youngstown to stand out in a region littered with cities of declining population, then it needs to promote itself as a place where such ambition is encouraged. I'd expect the squelching of unproven talent in Cleveland or Pittsburgh, but not Youngstown. However, I'm not as concerned about the journalism employed to write the story.

On the contrary, I applaud the Vindicator for its approach. The nature of the reporting reveals the substantial resistance to urban frontier Youngstown. It reminds me of the soap opera surrounding the V&M Star expansion. There are many residents of the Mahoning Valley who didn't like how the deal was going down. Is it better to sweep these parochial attitudes under the rug?

The key is bloggers such as Tyler to pick up the ball and run with it. If Novotny doesn't get the job, a lot of us will be asking questions. The situation is high profile and politically charged. It won't be business as usual for the patronage network.

The other side of the story is that the newspaper serves all readers, even those who would disparage the hiring of someone so young and inexperienced. If the Vindicator is generating controversy where none existed, then it is behaving in an unethical manner. I suspect that the editor and reporter took a risk in airing the opinions of unnamed sources. But that's what I read in between the lines.

YSU Global Business School

2009-11-11T14:48:00.000-08:00

If you want to run with the big dogs:

The purpose of the Centers for International Business Education (CIBE) Program is to coordinate programs of the Federal government in the areas of research, education, and training in international business and trade competitiveness; and to provide grants to pay the Federal share of the cost of planning, establishing, and operating Centers for International Business Education that will– 1. Be national resources for the teaching of improved business techniques, strategies, and methodologies that emphasize the international context in which business is transacted; 2. Provide instruction in critical foreign languages and international fields needed to provide an understanding of the cultures and customs of United States trading partners; 3. Provide research and training in the international aspects of trade, commerce, and other fields of study; 4. Provide training to students enrolled in the institution, or combinations of institutions, in which a center is located; 5. Serve as regional resources to businesses proximately located by offering programs and providing research designed to meet the international training needs of these businesses; and 6. Serve other faculty, students, and institutions of higher education located within their region.

Your move, Youngstown.

Immigration Stimulus

2009-11-10T13:49:00.000-08:00

I'll start this post by writing that the Cool Cities approach to urban revitalization isn't effective. At least, I'm deeply skeptical that it can work. I bring this up concerning the immigrant talent advantage that many Sun Belt cities currently enjoy. The Sound of Ideas recently hosted a panel that explored what the Rust Belt could do to steal some of this economically vital talent:

John Austin Brookings Institution
Richard Herman immigration attorney, co-author Immigrant, Inc.: Why Immigrant Entrepreneurs Are Driving the New Economy (and how they will save the American worker)
Reka Barabash Executive Director TiE Ohio
Ratanjit Sondhe entrepreneur, author, board member Cleveland Foundation

One of the strategies suggested is to make your community more welcoming to immigrants. In other words, increase one of Richard Florida's key variables: Tolerance. I doubt southern cities are attracting more immigrants than Rust Belt cities because they are more tolerant. Short of policy change at the federal level (notoriously difficult), what can shrinking cities such as Youngstown do?

I suggest targeting foreign-born secondary migration, which has benefited many cities in Eastern Pennsylvania thanks mostly to the proximity to New York City. Reading's Cool City credentials didn't catalyze more immigration. In fact, look no further to Hazleton to grasp the tolerance climate in that part of the United States. Instead of committing resources to local social transformation, fund a campaign to attract immigrant talent thriving in the DC Metro area or Chicago.

Business Journal Daily Kudos

2009-11-09T14:21:00.000-08:00

Great follow up story on the V&M Star expansion and the steel pipe tariffs in today's online edition of the Youngstown Business Journal:

At the request of V&M executives, Youngstown Mayor Jay Williams and [U.S. Rep. Tim Ryan] are scheduled to testify at a congressional hearing next month looking at trade policies and their impact on communities like the Mahoning Valley. Williams met with senior V&M officials last week in Paris to make his case for the proposed expansion.

Another example of news you can use comes from NEOtropolis. I am thrilled to discover that I can watch this program online. I'm a junkie for quality information and this show delivers.

Now, if I can get these two media outlets to target a diaspora audience ...

Hidden Assets at Youngstown State

2009-11-06T07:30:00.000-08:00

Janko e-mailed to me an interesting article in this morning's Business Journal online edition. He knows me well enough to highlight the passage that resonates with my interest in talent migration:

The company’s executive team also includes an Ohio State University alumnus. Foreign students who studied in U.S. schools and return to their home counties are the best U.S. ambassadors, he said. “They loved their experience in the states, want to work for American companies abroad and have a global view we need to have,“ Planey remarked.

These New Argonauts are featured in Richard Herman's new book, "Immigrant, Inc." Eric Planey is taking full advantage of reverse brain drain, also known as boomerang migration. Of course, Planey himself is a boomerang migrant back to Youngstown. As Herman might say, "He already thinks like an immigrant."

Something else that caught my eye is the tapping of alumnus from Ohio State. Janko recently told me that many of the foreign born students at Youngstown State University because it is the most inexpensive place for them to study in the entire United States. The Valley could do a much better job of leveraging this comparative advantage. These students are links to global business opportunities, just like the ones the Regional Chamber is exploring in China. Something to think about as the new business school gets cranked up.

Breaking News: US Tariff for Chinese Steel Pipes

2009-11-05T16:46:00.000-08:00

First, a reminder about the Mayor Williams in Paris story:

Last week, the U.S. International Trade Commission voted 6-0 to approve an investigation into imports of $380 million in subsidized steel pipe from China. The investigation, which could result in duties of nearly 100% on the imports, followed a petition filed by V&M and other domestic steel companies.

Williams said he would be testifying in December on the “first-hand impact” of unfair trade practices on communities like Youngstown and the Mahoning Valley, and why duties and countervailing measures should be implemented “should China continue these actions,” he said.

“Favorable trade rulings are another important component that V&M is looking at as they determine whether or not to expand here,“ said Walt Good, vice president of economic development, business retention and expansion for the Youngstown/Warren Regional Chamber.

About 30-minutes ago, the Financial Times issued this report:

The US hit China with another big trade action on Thursday as it slapped preliminary anti-dumping duties on $2.6bn worth of Chinese pipe imports.

The commerce department’s decision to impose duties of up to 99 per cent on imports of some steel pipes is the latest in a string of trade spats between over tyres, cars and chickens. It comes less than a fortnight before President Barack Obama’s first visit to China.

The ruling will affect more imports by value than Mr Obama’s recent move to impose duties on Chinese tyres, which sparked an international row in which Beijing accused the US of “rampant protectionism”.

The decision was a victory for steel companies, including US Steel Corporation, that petitioned for the duties in April. The United Steelworkers union said the decision was “an overdue message for thousands of American laid-off workers that trade laws are being enforced”. It says nearly half the domestic industry’s workers have been laid off.

I still think V&M Star intended all along to expand in Youngstown. But given Walt Good's comments, the prospects look even brighter.

WTO, China and Youngstown

2009-11-05T08:00:00.000-08:00

Taking yesterday's post to heart, the story missing from today's Mahoning Valley headlines:

The US, European Union and Mexico have asked for a World Trade Organisation dispute panel to investigate Chinese restrictions on exports of specialised raw materials used in industry, the latest indication that the global slowdown is leading to greater international action against China’s trade policies.

The request to the WTO claims that China’s restraints on exports of bauxite, magnesium and other raw materials, which are used to make steel, aluminium and some chemicals, is driving up the price of those end products.

If I was King of Youngstown, then every kid coming out of the local high schools would know the fundamentals of global civics and international political economy. Students should be able to understand how a WTO ruling could affect their lives. At the very least, Valley citizens should be able to read about it in the newspaper.

The Business Journal (a great newspaper that everyone interested in the TechBelt should be reading) does a good job of staying on top of global issues. But if they have a journalist dedicated to issues of globalization, I'm unaware of who she or he is. As the article about Mayor Williams meeting with V&M Star executives in Paris highlighted, international trade disputes involving China impact local employment. Today's news about the WTO investigation is a great opportunity to follow up that angle and clue readers in on an important development.

Why Youngstown Should Care About Strikes in Germany

2009-11-04T14:34:00.000-08:00

Geography as a subject of study is more often than not misunderstood. Geographers are masters at seeing the links between things that no one else notices. In the future, I think all journalists should have a college degree in geography. That way the following makes the cut in various Mahoning Valley news outlets:

Industrial union IG Metall said workers at Opel's four German plants would halt work - so-called "warning strikes" - on Thursday. Other plants in Europe would follow on Friday, it said.

Perhaps this is the value add we bloggers provide. I don't expect the Vindicator to have foreign correspondents on the payroll. However, I do demand that local beat writers help us readers make the necessary connections. If you don't see stories about globalization in the paper or on the TV news, then where can you get this kind of information with that valuable parochial slant?You won't find it in the Financial Times or the Economist.

General Motors is an important employer in the Mahoning Valley. GM's reneging on the sale of Opel sent shock waves of anger through Germany and elation through the United Kingdom. How might it affect workers in Lordstown? It may be irrelevant, but I'd feel better if a reporter or two could track that down for me. I'd figure struggling newspapers would be scrambling to fill any available niche. No doubt I'm wrong about that.

Steel Pipe Geopolitics: Youngstown, France

2009-11-03T14:14:00.000-08:00

Mayor Jay Williams in Paris after a meeting in Berlin is a great example of the globalization of local politics. National governments are cut out of the conversation. That doesn't mean that the nation-state is retreating from the international stage. However, subnational regions must have a coherent geopolitical strategy. The lesson from V&M Star:

“Obviously the market forces need to be trending in a direction that makes sense, and there’s a lot of things that go into that, but there was a sense of optimism as they looked out over the time horizon,” Williams said.

Along with the specific site and project, Williams said he also discussed with the executives the company’s overall strategy, market forces and other factors involving the decision and their timeline. “But I feel very comfortable that the Mahoning Valley site is very high up on their agenda and their radar screen,“ he said.

One of V&Ms concerns is with the unfair trading practices used by some of its international competitors, such as China, they said, and company officials hope that the United States will take “appropriate action,” according to Williams.

Last week, the U.S. International Trade Commission voted 6-0 to approve an investigation into imports of $380 million in subsidized steel pipe from China. The investigation, which could result in duties of nearly 100% on the imports, followed a petition filed by V&M and other domestic steel companies.

Williams said he would be testifying in December on the “first-hand impact” of unfair trade practices on communities like Youngstown and the Mahoning Valley, and why duties and countervailing measures should be implemented “should China continue these actions,” he said.

A company headquartered in France is demanding US protectionism on imports from China. Impacts on the economic geography of the Mahoning Valley are complicated. A bit of good news for Pittsburg, CA could be bad news for Youngstown:

In a welcome contrast to local factory closures, a venture of manufacturing companies from the United States and South Korea has opened a $135 million East Bay plant here that will make big pipes for the energy industry.

United Spiral Pipe's new state-of-the-art factory in Pittsburg will employ about 150 people, with room to expand.

The plant produces large-diameter pipes used for transmission of natural gas and oil.

The 340,000-square-foot welded pipe factory is a joint venture of American steel titan U.S. Steel Corp., South Korean steel maker POSCO and South Korean tube products maker SeAH Steel Corp.

The opening of the new plant comes at a time when the looming shutdown of the NUMMI auto factory in Fremont has ripped open numerous economic wounds.

"These are good jobs and these are well-paying jobs," said Pittsburg Mayor Nancy Parent.

Sound familiar? It should. I see a connection between the V&M Star expansion in Youngstown and the natural gas boom headquartered in Pittsburgh, PA. In other words, I'd be shocked if the plant ended up anywhere else but in the Mahoning Valley. Williams can help the company in Paris push the United States to punish cheap steal made in China. The POSCO deal in the Bay Area reveals the bluff. Domestic production is still a strong bet despite the accusation of unfair trade practices.

Youngstown holds all the cards.

Why Not Move to Youngstown?

2009-11-02T09:06:00.000-08:00

In anticipation of Richard Herman's book launch party, I'm dedicating all blogging during November to issues of international migration and globalization. As you may be aware, Herman is a tireless advocate for immigrants and the value they bring to the Northeast Ohio community. Read more about the Talent Blueprint Project here. And there is a wealth of information available at the "Immigrant, Inc." website.

The book aims to teach people how to think like an immigrant in order to act as a driver for the regional economy. Resonating with major themes of both of my own blogs, migrant as risk taker:

Immigrant business success has a lot to do with high risk tolerance. Risk tolerance is the core common value shared by both immigrants and entrepreneurs. Reflecting this commonality, MIT Professor Edward Robert has said, “To immigrate is an entrepreneurial act.”

A very small percentage of people in the world ask themselves “why not?” move to another country, and then actually take the plunge, uprooting themselves from the only place and people they have ever known. If they had actually listened to the “why” voices in their head and those around them, they never would have made the move. Try to anticipate future trends in your industry, try to identify big opportunities before anyone else does (even if it labels you a contrarian or a little crazy), and place a big bet or two on an which you are passionate about.

If immigration were a place, it would be Youngstown. Rust Belt refugees already think like the immigrants whom Herman interviewed. Long distance moves during an economic crisis is the definition of risky. People just didn't leave America's centers of manufacturing. They built, from the ground up, boomtowns such as Charlotte. That's how I would rewrite Richard's book, telling the stories of successful Rust Belt refugees. The challenge now is put that talent to work back in the homeland.

Global Youngstown

2009-10-30T13:44:00.000-07:00

Next month is dedicated to global themes and international migration. I'm helping my friend Richard Herman promote his new book, "Immigrant, Inc." I share Richard's passion for immigration issues and I'm a strong believer in what foreign born talent can do for local economic development. I also advocate taking advantage of globalization forces, as opposed to merely weathering the storm. That's why I am delighted to see this story in today's Business Journal:

Officials with the Youngstown/Warren Regional Chamber are heading to the Far East this weekend for a two-week trip to establish business ties in China and Taiwan.

The trip is part of a strategic plan to forge a “global footprint for the Mahoning Valley,” chamber officials report.

Comprising the local delegation for what chamber officials describe as an “unprecedented trip” are Tom Humphries, Regional Chamber president and CEO, Eric Planey, vice president, international/national business attraction; and Florence Wang, a member of the chamber’s board of directors and its senior advisor for Asian markets.

“This is the beginning of a coherent international strategy for the chamber and the Mahoning Valley,” said Planey, who was hired by the chamber in July. The goal of the two-week trip is to put the Youngstown-Warren area on the radar of Chinese corporations looking to expand into overseas markets “as a logical destination for their American operations,” he said.

Coherent international strategies are few and far between in the Rust Belt, particularly at this scale. Much of this development is catalyzed at the state level, mostly as a result of the dominant political geography. However, globalization opens up new avenues for dialog and metro-to-metro exchanges make more sense. In other words, don't wait for Ohio or your folks in DC to get the conversation started.

There are plenty of grassroots opportunities for international relationships. Audrea Cika sent out an e-mail that nicely illustrates this point:

The Kosciuszko Foundation is seeking area teachers and university students to participate in its Arts Enriched English Camp in Poland in July 2010.

The innovative three-week program brings together American teachers with Polish youth to enhance their knowledge of conversational English through instrumental, performance and visual arts experiences. College and high school students who are at least 18 years of age may apply as Teaching Assistants in this unique cultural exchange program. Last summer 44 elementary and 48 high school Polish students participated.

Polish ancestry and knowledge of the Polish language are not required, but participants must be U.S. citizens or permanent residents.

Selected participants receive FREE room, board, a weeklong follow-up tour and a modest stipend. Airfare is discounted because group flights are arranged by the Foundation. Teachers who are parents of teenagers can bring their children to serve as Peer Tutors to the Polish students.

Rev. Joseph Rudjak, pastor of Youngstowns Sts. Peter & Paul and Our Lady of Hungary served as dance and performance arts instructor at the camp last year. He will be joined by Mary Kay Pieski, the program's creator, when the Polish Arts Club of Youngstown hosts an informational session on the program and the opportunities on Sunday, November 15th at 1:30 PM on the 6th Floor of the Maag Library on the campus of Youngstown State University.

The public is invited.

I studied and taught in Poland during a three-week intensive course on transnationalism a few years ago. Poland was set to join the European Union and we were looking at how the border region between Poland and Germany might change. Poland is a country on the come with a number of great investment opportunities. Really, the exchange described above is no different than the Regional Chamber touring China and Taiwan. Business moves along the paths of relationships and Polish cities are strong partners for a revitalized Youngstown. You needn't be Eric Planey or Tom Humphries to engage in your own coherent international strategy.

V&M Star Rising in Youngstown

2009-10-29T09:39:00.000-07:00

Imagine Youngstown as a destination for a number of people conducting business globally. What would they see during their visit? V&M Star has already thought this through:

Earlier this year, V&M officials approached representatives of Lien Forward Ohio Regional Council of Governments, an organization that takes tax-delinquent land and matches it up with new owners who can redevelop or landscape the property, and asked if they would help organize a cleanup effort.

“Our intent is to work with Lien Forward in the demolition of vacant housing, making green space and taking areas that are blighted and turning them into areas similar to what you see on Market Street,” Johnson said, where landscaping efforts have cleaned up some of the entranceways into downtown.

Among the first blighted items to go was an unsightly chain-link fence that ran along a portion of the Route 422 thoroughfare. The city recently removed the fence. The city is also planning to raze a former office building of Youngstown Sheet & Tube by the end of the year. The dilapidated building is located at the entrance to the V&M Star plant.

V&M Star attracts visitors from all over the country and the world who do business with the Youngstown plant, and the company wants to clean up one of the city’s most visible gateways, said Debra Flora, Lien Forward’s executive director.

I'll make a wild guess and suppose that the above is one of the reasons V&M Star is so keen to have its expansion within the Youngstown city limits. I'm reminded of the cozy relationship between Big Finance and politicians in Charlotte that sparked a boom in the foothills of the Carolina Piedmont. I don't mean that as a critique, although there is a risk of over-dependence on one industry. It is indicative of the business friendly mindset of the Jay Williams administration and the forward thinking of the Regional Chamber. Things get done.

Youngstown has gone from brownfield backwater to an abundance of greenfield opportunities. Outside of Texas, there aren't many cities like it. In the Rust Belt, Youngstown may have no peers. In fact, I can think of only two cities in the United States that sport Youngstown-like assets: Tornado-ravaged Greensburg, KS and hurricane-ravaged New Orleans. I see New Orleans and Youngstown as kindred spirits. At least, the respective economic revitalization programs seem to be on a similar trajectory. Again, I'll remind you of the lessons from urban China:

Being near the coast is a help in China, because of access to external ideas and because coastal areas were permitted to experiment with reform first. An intriguing pattern is that governance is best in coastal cities that had very little industry when reform began in 1978. Shenzhen now has the highest per capita GDP in China. The same holds in Jiangmen, Dongguan, Suzhou--all were industrial backwaters in 1978, and responded to China's opening by creating good environments for private investment and learning from outsiders. Cities that already had industry tended to protect what they had and reform less aggressively.

In a nutshell, that's the urban frontier paradigm and what makes Youngstown so attractive to V&M Star. The missing piece might be the learning from outsiders, but the Phil Kidd story indicates otherwise. Youngstown leaders are remarkably open to new ideas.

Cleveland Envy in Pittsburgh

2009-10-28T08:54:00.000-07:00

The greatest beneficiary of increased connectivity between Cleveland and Pittsburgh is the Mahoning Valley. That's why the Youngstown/Warren Regional Chamber is promoting high-speed rail between the two big cities. That's why the driving force behind the Tech Belt Initiative is Congressman Tim Ryan. Youngstown is the capital of Cleveburgh.

But I would caution against highlighting all the similarities of the cities in this urban corridor as a way to breathe life into this economic region. Better to think of how they compliment each other:

I have a confession to make: I like Cleveland. Take it back, I love Cleveland. Maybe it's the New Girl in me and the inherent immunity to old rivalries with Pittsburgh, but I find the city by the lake to be charming and happening at the same time. Granted, some of Cleveland's assets do meet their equals in Pittsburgh: they have the Rock Hall, a terrific single-subject museum, but we have the Warhol, arguably one of the best single-artist museums in the world. While the Cleveland Botanical Garden has more colorful butterflies than we can shake a stick at, our butterflies at the Phipps flitted about the G-20 heads of state just last month and whereas the Ritz-Carlton Cleveland has received an impressive face-lift and is loveliness defined, we will debut a sleek Fairmont in a glass-walled tower come springtime. And while we best them in many areas, they have the Cavs with LeBron and Shaq, not to menton a Great Lake. Nothing we can do about that. So where is Cleveland really eating our lunch?

The point of the article is for Pittsburgh to learn from what Cleveland does well. I say just drive north and sample the delights. There is a lot of talk about emulating Pittsburgh's renaissance. But Cleveland must reinvent itself in its own way, leveraging its unique assets. I appreciate that I can get a different flavor in each of the Tech Belt cities.

What is the Cleveland model of revitalization?

Return to Cleveburgh

2009-10-27T08:23:00.000-07:00

We're in the last week of the Greater Youngstown 2.0 project. One of the unintended consequences of the effort is a better understanding of how to lure talented expatriates back home. Israel is struggling with these logistics:

"What we need is a kind of a vacuum cleaner, to suck back all those Israeli brains from foreign universities," Prime Minister Benjamin Netanyahu announced last week. One detailed plan proposed by the Immigrant Absorption Ministry was recently shot down by the Finance Ministry, citing financial concerns, amidst competing proposals to save Israeli academia.

"We've heard plenty of statements but I've yet to see a cabinet resolution to bring back the scientists," said Omri Ingbar, coordinator of the interministerial committee for absorption in science. "The brain drain problem is rooted in the lack of employment opportunities. The cabinet must spearhead a move to create new jobs, but it's trying to avoid the responsibility. The treasury wants solutions that don't cost money," said Ingbar, who heads the returning scientists unit in the Immigrant Absorption Ministry.

You can't call out to your wayward favorite sons and daughters if you don't have positions that need filling. Even if you do have jobs at the ready, interested members of the diaspora may not have the right experience. Youngstown is strategically located between Cleveland and Pittsburgh, which considerably expands the employment market. Cleveburgh makes for a compelling value proposition for boomerang migrants from all along the Tech Belt.

But expanding the geography of the labor-shed isn't a solution, particularly when unemployment is high throughout the country. In fact, migration during the Great Recession is making a curious pattern. Charlotte (NC) and Portland (OR) are two metros hit harder than most cities. Despite the lack of jobs, people kept coming. I moved to the DC area under similar circumstances. While sleeping on the couches of friends, I pounded the pavement looking for a good internship. I would do whatever it took to make a go of it in Washington.

That happens all the time in global cities such as New York. Talent innovates in order to stick in place of high opportunity. Migration is a matter of motivation. So is entrepreneurship. In fact, the two often go hand in hand. Ironically, many regions see the incubation of a thriving startup culture as a good talent retention strategy. These policies are misguided: Great idea, wrong demographic.

Don't get me wrong. Natives still living in the area can make great entrepreneurs. But identifying the right people is an inexact science, to say the least. But finding small-business-owners-in-waiting is easy when you target the diaspora. Do you want to move home badly enough that you would be willing to create your own job? This is a pool of potential entrepreneurs yet to be tapped.

Brain Drain Chicago

2009-10-26T10:31:00.000-07:00

When people leave, where do they go? If you are a Rust Belt native, then you immediately think of the Sun Belt. Perceptions of migration rarely match the reality, even at the policymaker level (which spells trouble for economic development). I submit for your consideration, South Carolina:

Lured by South Carolina’s beaches, lush green mountains and mostly snow-free climate, Ohioans and other northerners are moving here by the van load, right?

Not quite.

New population data show that most people who moved to South Carolina between 1990 and 2008 were from three southern states – North Carolina, Georgia and Florida.

North Carolina supplied by far the most newcomers during this period, with 393,935.

And Ohio? A mere 84,898 came from the Buckeye State.

Since 1990, more than 2.3 million people moved to South Carolina, while 1.9 million moved away, according to the state Office of Research and Statistics.

“We are a pretty mobile group of people,” said Jerry Mitchell, a geography professor at the University of South Carolina. But, he added, “most people don’t move far.”

Migration was one of my subfield specialties as graduate student in geography. That most moves are short was drilled into my head. The tendency is so typical as to not merit much study. Relocating over great distances is much more interesting. That's where global cities such as Chicago come into play.

Another popular myth is that the big cities somehow retain talent better than shrinking cities. You might be surprised to learn that most metros thought to be doing well are annual losers in the battle for domestic migration:

For years, Chicago lost its wealth and population as people with money moved out.

Some headed to the Sun Belt, and some to the collar counties for bargain homes.

Away they went, by the thousands each year, making it tougher for Cook County to pay its bills.

Nothing seemed to put a stopper in the drain, until now. Unlikely as it sounds, the recession has come to the rescue.

Brain drain Chicago. The picture is much more complicated than that, but the migration story is similar to that of Boston, New York City and even San Francisco. The idea that cooler cities are somehow doing better is a misrepresentation of the relocation data. However, big cities attract talent from further afield. The apple also falls further from the tree in places such as Chicago. Long distance moves away (or to) smaller cities are rare, as our map of Youngstown out-migration illustrates.

I'm amazed how many talent initiatives fail to grasp the above patterns. I think that is why so many efforts focus mainly on retention. We are trying to solve a problem that doesn't really exist. And that's why I feel so fortunate to be working with the movers and shakers of Greater Youngstown. While other cities recycle the same lame brain drain initiatives, I get to help create an innovative talent attraction initiative. This is a policy frontier. Only in Youngstown ...

Auto Industry Diaspora

2009-10-16T09:38:00.000-07:00

If you are interested in urban policy, then you should be reading the Brookings blog at The New Republic. By way of introduction, a post published today concerns all the communities with strong ties to the auto industry. This group shares common economic struggles, particularly now:

Last week’s Conference on Automotive Communities and Workforce Adjustment, sponsored by the Federal Reserve Bank of Chicago and held at the bank’s Detroit branch, understandably focused a lot on Detroit and southeastern Michigan. In my talk at that conference, though, I pointed out that the metropolitan areas that depend most heavily on the auto industry (including assembly and parts, foreign companies as well as the Detroit Three) aren’t just in Michigan, and most aren’t anywhere near the size of Detroit.

The implication for the Mahoning Valley is obvious given the dependence on the auto industry in Lordstown. The point I want to make is that we tend to paint with the broad brush of a state or, a bit finer, a large region within a state. The economic geography is a lot more complicated than that. Worse is the stereotypical landscape of "Rust Belt" and "Sun Belt". There are many Rust Belt cities within the Sun Belt megaregion.

In this sense, our attempts at better policy are doomed from the start. Federal initiatives are funneled through the states. That is the legacy of our political geography. We try to work around this handicap by grouping states together that seem to share some common traits. (See the Great Lakes Economic Initiative) The economic geography reveals that we live in a Metro Nation. Chattanooga, TN and Birmingham, AL have a lot in common with Youngstown. I think this suggests that there should be a network of cities with similar economic development issues. The best example I know about is the Shrinking Cities Network.

Instead of thinking in terms of Ohio or Northeast Ohio or even Cleveburgh, remember the shrinking cities diaspora.

Congressman Ryan Calls Diaspora Home

2009-10-15T08:23:00.000-07:00

As the Mahoning Valley quickly moves on from the spat between Youngstown and Girard over the V&M Star expansion, Congressman Tim Ryan shares his vision with the public:

“This is the beginning of a new era,” said U.S. Rep. Tim Ryan, D-17, as he addressed a crowd filled with elected officials and staff representing Youngstown and Girard’s city councils, Mahoning County and the office of Gov. Ted Strickland.

“We’re ready,” Ryan vowed. “We’re going to do business and have people come back to this community to raise their families.”

Congressman Ryan, we here at Greater Youngstown 2.0 are ready to help those people move back.

Disruptive Youngstown

2009-10-14T13:13:00.000-07:00

I've got a big backlog of blog fodder. If I don't write now, then I'll likely never do it. Aaron Renn does a good job of framing the urban frontier hypothesis here and here. I'd like to add to this burgeoning narrative the thinking of Ryan Avent:

I think Lee’s disruptive technology post offers us a glimpse at an explanation. When a metropolitan area has an old, successful, established industry as its economic driver, that area builds its infrastructure and institutions around that industry. These institutions are likely to be unwilling and unable to accomodate and support growth industries. We can think about legislators in a Rust Belt state who fight to protect old industries even when the protections they seek would undermine growth industries. Or banks in old manufacturing centers that are reluctant to invest in start-ups with sharply different practices from the old giants.

If you have a daring new idea, you don’t take it to someone who’s living fat off something which has worked for decades. You take it to someone who is hungry. Many of the Sunbelt boom towns which have sprung up over the past half century grew at the start by accepting what investment they could. I’m reminded of my hometown, where leaders were anxious to attract high-tech investments to their new Research Triangle Park. It was lack of better options that gave them the idea in the first place — something which might not have occured to leaders in a city where hundreds of thousands of people earned good union wages in manufacturing plants. And while leaders definitely wanted to craft a research environment, they took the investments they could get. Not having recently been on top of the world, they had the benefit of not suffering from wounded pride when less-than-glamorous operations came to invest.

I emphasized the relevant part of the passage. Youngstown may be the hungriest city in the entire Rust Belt. That's another way of framing an urban frontier opportunity. You can do in Youngstown what you can't do in Cleveland, a city "suffering from wounded pride".

When I imagine Richard Longworth's Midwest, I envision a landscape of wounded pride. We need a good psychiatrist. The collective psyche of Youngstown has moved beyond historical stature. That's why the Mahoning Valley is a good place for a daring idea.

Brain Drain Columbus

2009-10-12T22:26:00.000-07:00

The brain drain story is almost always overstated. Reactions to various statistics verge on hysteria. But every so often a more measured assessment bubbles up in our local newspaper. Goodbye Columbus:

The Fordham Institute is a nonprofit organization based out of Dayton, Columbus and Washington, D.C., that lobbies for education reform at the state and national level. It became interested in brain drain issues—where college students leave after graduation and take their Ohio educations with them to help bolster someone else’s economy—as part of its effort to improve the public education system.

The report, released June 15 and titled “Losing Ohio’s future: Why college students flee the Buckeye State and what might be done about it,” was touted in the media as applying to all fields in the state, when in fact, it was developed out of a study meant for the education sector.

“We were looking at the deficit in the education field and how difficult it was to find dynamic new school leaders and teachers. So we ended up doing a study to get at why education students are leaving Ohio,” said Emmy Partin, director of Ohio policy and research for the Thomas B. Fordham Institute. “More specifically, we know there is a talent deficit (in education). It’s incredibly difficult to find bright people to run these schools. In the education sector, specifically, there is a brain drain.”

But it seems the report has sparked a sky-is-falling reaction in every sector.

Columbus had its share of brain drain hysteria in the wake of the report. But the actual migration numbers tell a different story:

Central Ohio, like the Cincinnati and Cleveland areas, reflected a move to the suburbs by residents of Franklin County, which experienced a net loss of 4,161 people to seven nearby counties. Nearly half of that loss came from Franklin County residents heading north to Delaware County, which in recent years has been ranked as one of the fastest-growing counties in the nation.

What sets 1.1 million-resident Franklin County apart from Cincinnati’s Hamilton County and Cleveland’s Cuyahoga County is the fact that migration gains from elsewhere in Ohio are more than offsetting residents’ flight elsewhere in the region. Franklin County booked a net gain of 4,260 residents from areas outside Central Ohio.

“Even within Ohio, Franklin County attracts people from across the state, providing evidence of Central Ohio’s relative economic health,” the report said.

Community Research Partners published a useful look at "Ohio Population Migration Patterns". I think the maps would surprise most people. Probably the biggest relocation problem in Columbus is the move to the suburbs, hollowing out the city core and undermining municipal fiscal health. A more sober look at migration issues would help the state to avoid wasteful policies such as the Grads for Grants program.

Ohio Metro Success Stories

2009-10-12T09:33:00.000-07:00

I have a more detailed post over at Burgh Diaspora discussing Midwestern/Rust Belt metros doing surprisingly well. These cities offer strong opportunities and hit well above their weight in the urban hierarchy. The good news in Ohio:

Now for a look at the rest of the Midwest. Site Selection asked [Richard Longworth] to name a city or two in each of the states he includes in his definition of the Midwest that he considers to be bright spots, leaders in their states' economic turnaround or, at the very least, worth site selectors' attention in 2009 and beyond. ...

... "Columbus is doing well and not losing population. Akron is interesting. It's taking its old base in rubber and is working hard on a new polymers industry. Wooster has a good local college, an ag branch of Ohio State and a beautiful downtown. It's a thriving town."

Wooster is a city that has been on my radar for a few years. Every so often, I read a story about innovative approaches to economic development going on there. I think Wooster would be a good model for Steel Valley cities to emulate.

As for Akron, I also find the city "interesting". I need another visit to get a better sense of the transformation going on there. Both Wooster and Akron are off the mental maps of outsiders. Figuring out how to better appeal to talent in other cities should be priority one for Tech Belt stakeholders.

Dying Cities Paradigm

2009-10-10T10:17:00.000-07:00

The infamous Joshua Zumbrun, the author behind the Forbes list of dying cities, expresses skepticism about good news Youngstown gracing the pages of this week's Economist newspaper. Industrial decline would seem to be an intractable problem. I think the issue is the lens (growth paradigm) we use to assess city health. We're fixated on the population numbers and focus on reversing the trend (e.g. plug the brain drain). The trick seems to be thinking about all the perceived liabilities as an asset, a competitive advantage.

Yesterday, I was speaking on the phone with one of the Youngstown Vanguard (the architects of Dream City). He had met with a group of the foreign-born students at Youngstown State University. How did they end up at Youngstown? The answer surprised him (and me). All of them mentioned that YSU was the most inexpensive place to earn an American college degree. They were employing geographic arbitrage, a key component of the Mahoning Valley opportunity landscape.

In order to unleash the geographic arbitrage advantage, the region must mitigate or reduce legacy costs. As we begin to develop shrinking city planning techniques, dealing with these legacy costs should be priority number one. Joshua Zumbrun should come and see for himself just how Youngstown has done this.

Stubbornly Stuck In Place

2009-10-09T15:50:00.000-07:00

The big news in the Mahoning Valley is, of course, the deal struck between Girard and Youngstown that will allow for the expansion of the V&M Star site. I'm still fixated on the Mayor of Girard. In my opinion, he walks away from this looking like a parochial jackass:

The agreement was reached after a marathon bargaining session in downtown Youngstown, mirroring a similar session Aug. 24, when the sides reached a tentative agreement on the land.

''I guess we were all going to turn into pumpkins if we didn't (reach a deal),'' said Girard Mayor James Melfi.

Melfi is mocking the sense of urgency expressed by Youngstown officials, the Regional Chamber and Congressman Tim Ryan. Furthermore, Melfi refused to speak with The Business Journal:

About two months ago, Girard Mayor James Melfi criticized the plan to annex the Girard Land to Youngstown, resulting in several weeks of discussions. Only days ago, Melfi had said he did not believe a deal was close. ...

... The Business Journal has been unable to secure any comments from Melfi. The newspaper has criticized his actions in an online editorial and satirized his position in a political cartoon. ...

... A formal signing ceremony is being planned for Wednesday, and a V&M official is also expected to be on hand for the event.

“It’s a very good day for the Valley,” Girard City Council President Reynald Paolone said Thursday evening. Based on discussions he has had, he does not foresee any problems with his council’s vote.

The council president specifically wanted to thank officials with the Youngstown/Warren Regional Chamber, which has been working with V&M on the project, as well as V&M officials for being patient, Youngstown’s administration and the city councils of both cities, and The Business Journal. “You guys were really positive on this thing,” he said.

Upon reading that, I had to laugh. This is far from subtle journalism. Here you have the Girard City Council President praising the newspaper that Melfi refuses to acknowledge. Melfi had no problem speaking to reporters of the Warren Tribune Chronicle. Of course, he's quoted as making a snarky remark.

I'm relieved that the Mahoning Valley was able to overcome all the obstacles that Melfi decided to throw down at the last minute. He acts as if his brinkmanship isn't obvious. His conduct is shameful and would make outsiders wary of investing in his city. Time for a change.

Rising Star of Youngstown

2009-10-08T09:17:00.000-07:00

The Economist is in the midst of a love affair with Pittsburgh. The reviews of the city's makeover are glowing. Now, some of that attention is spilling over into Youngstown:

One developer is hard at work converting old downtown high-rises into stylish new apartments. And Federal Plaza, the once abandoned main drag, is now speckled with a few clubs and restaurants. On Friday and Saturday nights, twenty-somethings spill out onto the pavements. Now all Youngstown has to do is keep them.

No. Youngstown must attract more of them. Let Detroit and Michigan waste time and resources worrying about retention. Ignore Ohio's silly scheme to help college graduates buy homes in the state. In general, first-time homebuyer credits make for lousy policy. The legislation is a handout to real estate interests.

Youngstown's challenge is to get the word out about the tremendous opportunities available in the city. The article in the Economist highlights the geographic arbitrage advantage:

Jim Cossler, head of the Incubator, expects more growth as more start-ups join Turning Technologies and the 13 others currently there. He says he has convinced a software company from San Francisco to send some employees to Youngstown, not least because—according to him—the rent is 4% of what it would be in San Francisco.

I would stress the embrace of entrepreneurship and the very accessible Mahoning Valley powerbrokers. Youngstown might be the nation's startup garage. Tinker on the cheap along with all the other young, ambitious talent scheming and dreaming downtown.

New Rust Belt Visions

2009-10-07T10:27:00.000-07:00

When I write that Youngstown is at the front of a new economic paradigm, I'd bet most people think that I'm guilty of hyperbole. But after reading about ambitious self-starters re-inhabiting the homes of the economic titans of the city's past, I tend to think that I'm understating the transformation. Also, the creative vanguard is seeing the same thing I am:

“All of the projects draw upon the phenomenon of decay as a process of change affecting our built components,” Maher said. “We are each interested in transcending the negative … associations of decay, and in revealing neglect, abandonment and blight to be catalysts for extraordinary forms of regeneration.” ...

... “Most of the world’s older cities have been built again and again, layer upon super-imposed layer and our understanding of those places is based upon our glimpses in between the layers. But here in Buffalo, things are actually de-layering,” Maher said. “Rust belt cities are particularly interesting to me because we don’t really know where they are headed and because the vacuous nature of such places creates tremendous opportunities to invent new ways of living.”

To date, this is the best interpretation of urban frontier I've encountered. The suburbs used to be the place where this kind of innovation occurred. As California slides into the abyss, the sprawl paradigm is coming along for the ride. Tomorrow's greenfields (i.e. "vacuous nature") can be found in Youngstown, today.

Nowhere else are the barriers of entry so low. The best ideas truly have a chance to flower. You needn't be well-connected or sport an impressive résumé. Come to Dream City and live in the mansions that industrial riches built.

Polish Happy Hour at Lemon Grove Cafe

2009-10-06T13:54:00.000-07:00

The next Polish Happy Hour Youngstown will be held on Thursday, Oct 8^th starting at 5:30 PM at:

Lemon Grove Cafe

122 Federal Plaza W

Youngstown, OH 44503

330.301.0282

Map

SPECIAL FEATURES:

Happy 1^st Anniversary to US
It was a memorable year! We wanted to thank you by commemorating it by bringing in a special guest. We will be joined at this event by Andrew Bak, brand manager of the popularBison Grass Vodka and official sponsor of polishyoungstown.com. He is flying in from New York to teach us all about vodka infusions, the latest way to enjoy Poland’s most popular export. In fact, he is having his chemists make up a couple of special formulas just for us!

Of course we want you to make it even more fun! inviting you, our guests, to participate in our first Infusion Challenge: whip up your own vodka specialty flavor this week, bring it with you on Thursday and we will judge them at the party! Compete for a fun prize!

Here are some links to inspire you:

http://bexhuff.com/2006/08/how-make-vodka-infusions

http://cocktails.about.com/od/spirits/ht/infusions.htmut.com/od/spirits/ht/infusions.htm

I put mine together last night and can’t wait to share it!

Our featured vodka will be the stylish Bison Grass. Known in Polish as Żubrówka, this brand of wisent -flavored vodka is distilled from rye and mixed with a tincture made of grass grown in Eastern Poland’s Bia 2;owieża Forest. The rich flavor qualities of this unique vodka will be highlighted in our signature drinks, the Bison Apple Martini and the Cranberry Bison Cocktail. Our beer offering will come from Zywiec.

By your request, we also will have NEW chic Polish Happy Hour Shirts on red and as well as brought back the popular black with its cool back design. It is a short run so you may want to reserve yours in advance. They are available to purchase online or at our events. Order one NOW!

As always there will be authentic Polish Hors’douvres, Zywiec beer and drink specials, music, door prizes, 50/50 raffle and more!

Stick around to hear the sounds of acoustic specialist 60 Year War!

Poland 2010

Many of you have filled out the survey on our website expressing interest in traveling to Poland next summer with us. It is very exciting! It is also time to start making our dream into a reality. As such our friend Mitch Benia, owner of Kniola Travel in Slavic Village, Cleveland, will be on hand Thursday with some more information on our itinerary and dates for our planning meeting. No obligations necessary yet, just a willingness to share in the dream!

CALENDAR REMINDERS AND ADDITIONS
The Krakowiaki Polish Folk Circle will participate in Zata 4;czmy: a Celebration of Polish Folk Dance on October 18th at Magnificat High School in Rocky River, OH. Tickets for this six –group concert are on sale now. More info available HERE.

It’s a Girl Thing: Your night of relaxation and inspiration

Tuesday, October 27th 6-9 PM $5 pp

Five Points Wine & Bar, Western Reserve Road

Featuring presentations, demonstrations and tastings by Five Points, Dove Chocolate Discoveries and Pampered Chef.

Before the rush of holidays start, treat yourself to a relaxed night out full of elegant ideas you can implement this season while entertaining at home!

Proceeds to benefit the Krakowiaki Polish Folk Circle costume fund.

The Artistry of Wigilia: A Polish Christmas crafts and traditions workshop

Saturday, November 14th 1-5 PM $5 pp

Featuring demonstrations and hands-on workshops of by noted Slavic folklorist Lawrence Kozlowski

Polish Advent and Christmas practices, rituals foods and folk crafts will be covered.

Items available to create and take home as well as merely to purchase.

Proceeds to benefit the Krakowiaki Polish Folk Circle costume fund.

******** About Polish Happy Hour **********
Polish Happy Hour Youngstown brings together those who hold any interest in Poland or Polish culture to have fun and meet new friends. All persons are welcome, including Polish language speakers and non Polish speakers. Part of a national organization, the group will host a gathering on the second Thursday of every month in downtown locations. Each time the event will respond to the venue by changing the selection of imported Polish beer, vodka special and music selection. We welcome everyone! Check outwww.polishyoungstown.com for information on our organization.

If you are interested in hosting or assisting future Polish Happy Hour events, please write to info@polishyoungstown.com

Warren Incubator Geography

2009-10-05T08:17:00.000-07:00

Tim Ryan's advanced energy initiative is beginning to take shape. The hub of innovation will be in Warren. The exact location is still up in the air:

Anthony Iannucci, director of Warren Redevelopment and Planning Inc., spearheading the drive for a business incubator, said nearly $3 million already has been earmarked for the project, including $500,000 from the Ohio Department of Development and more than $2 million from the federal Department of Energy, which should be available in the next 30 days.

It's unlikely the incubator will be located in downtown, but Iannucci said it will be within city limits. A site cannot be chosen until the incubator's niche is determined, he said. ...

... "We have been talking to Northeast Ohio Energy Partners, the Fund for Our Economic Future, Jumpstart and NeoTech on the state level. But I also have been in touch with venture capitalists who come to my office about energy issues. Some of them are from Ohio and some are from places like California. We will seek the expertise of those involved with the Youngstown Business Incubator. I think all of these relationships will save time and trouble down the road,'' Ryan said.

He said the Youngstown Business Incubator was primarily focused on software and did not require a large amount of space. He said here, space is needed for companies to build prototypes so a site with manufacturing capabilities is needed.

Ryan said this area has a strong manufacturing base, along with resources at universities such as Youngstown State University, Kent State University, Case Western Reserve University and the Great Lakes Energy Institute.

"I want our incubator team to be a real blend of local strengths and local input, but we also need that venture capital on a national level to make things happen," Ryan said.

WRAP previously purchased a building in Courthouse Square to house an incubator, but as the focus changed to green technology, WRAP began to rethink locations, and the building was sold, Iannucci said.

I first heard about the incubator plans while in Youngstown last August. At the time, all signs were pointing towards downtown. I was skeptical enough to request a tour Warren, as well as the strip of development stretching between the two cities.

Warren's town square reminds me of New England. The buildings and homes are aesthetically pleasing and the hotel there is a great anchor. There's a river walk and a bandshell, which was active with music during my visit. It was Friday evening with the sun still up and downtown was closed. On the way to Warren, I noticed all the activity along the highway in the strip development. Restaurants were packed. Downtown Warren keeps banker's hours.

Contrast that with Youngstown, the downtown full of energy well into the night. The Youngstown Business Incubator has a lot to do with that. The geography of innovation is ideal. Startups are in city center. The university and the Butler Institute of American Art are a short walk up the hill. I experienced firsthand the spillover potential. Walking around the city, we had one chance encounter after another. Knowledge and ideas are exchanged, schemes hatched.

Warren doesn't have the core assets that Youngstown has, but the hotel and river access distinguish it from the rival down the road. (Very interesting political history between the two cities) I hope the parties concerned will reconsider a downtown location. The need for manufacturing space makes sense. But the production site could be separate from the office work (e.g. marketing and design). I recognize that throwing Warren a bone is necessary, but the pigeonholing of the incubator project is a concern.

I'm thinking about this issue from the perspective of talent attraction. Your engineers will appreciate being able to jog along the river and walk to work from one of the beautiful homes adjacent to downtown. While drinking coffee, idea can meet up with financial capital. Political issues? Just visit the next table over from you. This will revitalize the core and better plug into economic globalization.

Tech Belt Advanced Energy

2009-10-03T09:18:00.000-07:00

I'm still trying to connect all the dots, but there is some movement on the Tech Belt front:

The U.S. Department of Energy is looking at establishing “a handful” of advanced energy research commercialization centers around the country, said Chris Thompson, director of marketing for the fund, which has put more than $1 million into regional advanced energy initiatives.

The Fund for Our Economic Future is a Cleveland-based group of philanthropies collaborating on efforts to promote growth in northeastern Ohio.

This summer Ryan, D-17 Ohio, secured $2.2 million for the Warren Technology and Business Center for Energy Sustainability proposed for downtown Warren.

Mayor Michael O’Brien, who also traveled to Washington recently along with representatives of the Regional Chamber and the Youngstown Business Incubator, reported that an economic adviser to President Obama said Warren could also receive funds from the automobile task force to establish the incubator. Companies represented at that meeting involved in the energy incubator concept nationwide “were interested in what Warren has to offer,” he said.

“We need to make sure that the [proposed] Tech Belt between Cleveland and Pittsburgh gets one of those labs,” said Thompson, who filled in for Whitehead at the breakfast, sponsored by the Youngstown/Warren Regional Chamber. Fund officials believe that advanced energy represents a big opportunity, and has the potential to enjoy the same kind of growth as the bioscience industry.

The story here is the coordination of key actors in the Mahoning Valley (sans parochial Girard). There exists a potent mix of doers and thinkers who are all on the same page. It is remarkable, particularly for the Rust Belt. For the record, these same vanguard actors are still on the margins in Pittsburgh. I'm a big Pittsburgh booster, but this is one of the area's shortcomings.

Entrepreneurship reigns supreme in the Mahoning Valley. Let Dayton have its aerospace cluster. If you want to start a business, then move to Youngstown.

Battle For Clean Tech Jobs Begins

2009-10-01T10:31:00.000-07:00

The Brookings Institution has the scoop on the US Senate version of the Waxman-Markey bill:

Equally or even more important given our concern for metropolitan and national economic restructuring, the new bill calls for investments in energy innovation. On this front, the Kerry-Boxer bill tracks both the Waxman-Markey proposal and the Department of Energy’s FY2010 budget request by proposing the creation and funding of a string of energy innovation hubs.

This matters a great deal to Greater Youngstown thanks to the tireless efforts of US Congressman Tim Ryan to secure an energy innovation hub in the Mahoning Valley. This also highlights the importance of the Tech Belt Initiative, which would integrate the entire Cleveburgh corridor with Pittsburgh's emergence as a global energy center.

The stakes couldn't be bigger. This is an economic development bonanza and Greater Youngstown cannot afford to be left out of the national program. Now is a good time to get organized and lobby your senators. Repower America: Ohio Chapter is a place to start.

Made In Youngstown

2009-09-30T06:13:00.000-07:00

Manufacturing is making a comeback. At least, that's the vision emerging from the Pittsburgh Summit. The global concern is that the United States consumes too much and produces too little. Germany is one model that America might follow, the Rhine-Ruhr Valley in particular:

For Managing Director Ines Freesen, the similarities between Pittsburgh and Germany’s Rhine-Ruhr Valley, where her company is based, are evident and made for a good fit with the trade show’s focus. Both are formerly steel and coal industry heavy regions whose economies took a serious hit in the 1980s.

“Now, Pittsburgh and the Rhine-Ruhr Valley have become leaders in greening the landscape and in creating a renewable energy industry,” Freesen said. “This development plays nicely with the theme of our event as it reflects how the global economy is changing towards a cleaner, greener way of doing business.”

There is an ongoing cooperation between Pennsylvania, Pittsburgh in particular, and the state of North-Rhine Westphalia to foster technology exchange and create business opportunities for companies in both countries, according to Freesen. “The focus of this agreement is on renewables and a number of projects with American-German participation are already underway,” she said.

As you may have heard, Pittsburgh is positioning itself as the energy hub in the United States. The offshoot of the this cluster is green manufacturing of all kinds. The Tech Belt looks to be the cradle of most of this activity.

Ironically, geography is blessing the Rust Belt. Proximity to East Coast markets is a big plus. Ample resources such as natural gas is another. But the biggest one may end up being water:

Here is an inconvenient truth about renewable energy: It can sometimes demand a huge amount of water. Many of the proposed solutions to the nation’s energy problems, from certain types of solar farms to biofuel refineries to cleaner coal plants, could consume billions of gallons of water every year.

“When push comes to shove, water could become the real throttle on renewable energy,” said Michael E. Webber, an assistant professor at the University of Texas in Austin who studies the relationship between energy and water.

Conflicts over water could shape the future of many energy technologies. The most water-efficient renewable technologies are not necessarily the most economical, but water shortages could give them a competitive edge.

The parched West doesn't look so green. If we define carrying capacity in terms of renewable energy, then the Rust Belt has a lot of room to grow. The old manufacturing states should be ardent supporters of legislation that seeks to reduce greenhouse gases. For a variety of reasons, that isn't the case.

The global reset in Pittsburgh suggests another golden era for America's traditional manufacturing centers. If we are to make things again, then there is only one region in which to do it. Go see this future at Energy & Environment Week in Pittsburgh (April 12-16, 2010 at the David L. Lawrence Convention Center).

Mahoning Valley Provincialism

2009-09-29T10:46:00.001-07:00

While Youngstown tries to move boldly forward, Girard remains stubbornly stuck in the past. I've been following the dispute between the two cities concerning the $1 billion V&M Star expansion. The old municipal rivalry shouldn't be taken lightly:

Some Girard residents spoke out against Youngstown giving any land toward the project. “I wouldn’t give Youngstown one foot of this land,” growled Mike Panno. “I don’t care if V&M moves to Texas, I wouldn’t give them one foot of Girard,” he said, vowing to campaign against those who voted for the resolution without knowing it details.

That angry voice will find political expression and even if this gets done, all the brinkmanship going on will leave a bad taste in mouths of both cities. Workers like to blame globalization or free trade agreements for their troubles. But no one pays any attention to all the self-destructive behavior going on all around them.

If Mahoning Valley residents are going to help themselves, then parochial attitudes have to go. Getting what you can now says that you don't expect much in the future. Mayor James Melfi represents the constituency that has no hope.

The Youngstown Paradigm

2009-09-28T15:49:00.000-07:00

Grow or die. That's conventional economic development thinking. But the current global malaise is lending itself to the challenges to this approach. The status quo fires back:

A recent study reiterated the conclusion that population growth ought to be controlled in order to combat global warming, and other world problems. I beg to differ. The authors of studies like these have exaggerated the benefits of population control, because they ignore some of the significant economic benefits of large populations.

I happen to disagree. Show me the greater innovations of large populations and I will hold up the power of density, how the concentration of talent yields regional economic dividends. If I'm wrong, then shrinking cities have a bleak future:

Go to Europe, and you'll trip over the remnants of all kinds of empires. After the fall of the Berlin Wall, the German government moved residents to concentrated areas in cities like Leipzig and turned off the lights elsewhere.

But in North America, where people spend more time every year commuting to work than vacationing, the idea of planning decline is foreign.

"In the U.S., everything is about reaching the next frontier. Growth is progress," says Karina Pallagst, director of the Shrinking Cities in a Global Perspective program at the University of California at Berkeley. "So talking about shrinking is taboo. It's a very painful insight to say we have to cut back."

Still, there are some local models. Facing a population a third the size of its glory days, former steel hub Youngstown, Ohio, has offered to move residents out of dying neighbourhoods into denser ones, where city resources are concentrated. It plans to demolish leftover homes, yank up street lamps and let nature take over.

"It's like taking a segment of an orange out," says Joe Berridge, a partner with Toronto's Urban Strategies, which helped draft Youngstown's "right-sizing" plan.

Flint's former acting mayor, Michael K. Brown, recently spoke about following suit and "shutting down quadrants of the city."

While running for mayor last spring, Bing raised the prospect for Detroit.

I wouldn't say it is planning decline as it is unleashing the power of density, one of the dominant urban patterns for globalization. I don't see the human capital angle often expressed in the right-sizing narrative. Intentionally or not, Youngstown is moving in that direction. The trick is to entice as many businesses and residents as possible to pack into the city core. Save a big bump in birth and in-migration rates, density is one of two ways to tap into the knowledge economy. The other is diaspora networking, which deserves its own post.

New Economy Youngstown

2009-09-25T14:35:00.000-07:00

I would guess that since I'm a Pop City subscriber, hiVelocity thought I'd be interested in the publication. About hiVelocity:

hiVelocity tells the story of the new economy in Ohio. It's a narrative of creative people and businesses and what they are doing to create jobs for today and tomorrow. It's the story of a state on the move.

I've found Pop City to be a great news aggregator of the kind of information I'm seeking. But if you don't care for regional boosterism, you might as well skip it. I tend to focus on the progressive agents and hiVelocity looks as if it will deliver. There are already enough venues where I can find out about what is wrong. And anything that helps to connect like-minded people is a good thing.

G-20 Youngstown

2009-09-24T12:08:00.000-07:00

Thus far, the G-20 Summit has been a public relations coup for Pittsburgh. All that is missing is a landmark agreement forever remembered as the Pittsburgh Accord. The press seems quite smitten with Pittsburgh's transformation and some of the love is spilling over into the surrounding hinterlands:

Karl Leet, a resident of nearby Youngstown, says his home town is undergoing a revival of its own. But in many parts of the region 'they are still going through knocking down the housing and waiting for something to happen'.

The message to G20 leaders, says Tom Murphy, is that waiting around doesn't cut it. 'You have to be willing to take some risks.'

Youngstown is on its own path, but the transformation of the Mahoning Valley is no less remarkable. However, the area is being framed as a counterpoint to the gilding of Pittsburgh:

So, very close to Pittsburgh with its stirring symbolic story of regeneration and post-industrial prosperity lies this other America of the Mahoning Valley where they see the costs of globalisation in their closed-down factories and derelict buildings on Main Street.

One needn't go to Ohio to find the other side of the story. Pittsburgh is full of such places. As for Youngstown, the city is positioning itself to plug into globalization. It isn't a message of reform or an alternative approach. The handwriting on the wall is that the United States needs to be more export driven. In layman's terms, we need to make things.

The bet is on green manufacturing and clean tech. Obama is highlighting that very sector in Pittsburgh. In some respects, the result is a pro-globalization rally with Mahoning Valley residents leading the way:

To coincide with the global meetings, hundreds flocked to Point State Park for a rally on a hot issue expected to emerge at the meetings, the importance of clean energy jobs. United Steelworkers members already see the need. "We can created millions of jobs. Somebody's gotta build the windmills, put the solar panels on the roof, build the tubing for the thermal, that needs to be the steelworkers' union, American jobs," says Lee Geisse of United Steelworkers, Local 1046.

About 25 people from the Valley made the trip down, including some who used to work at Severstal Steel. They want to make sure leaders know local workers want to take on green jobs. "These are the things I want to see manufactured, not only in our country, but in our state because we have a strong manufacturing base in Youngstown. We have some of the most skilled workforce in the world and I'd really like to see my friends and neighbors back to work as soon as possible," says George Calko of United Steelworkers, Local 1375.

Beyond the rally, the fact that such a huge event is taking place in our own backyard has attracted attention, "This is a great moment in history that we can be a part of, and the Valley can show we're a force for change, and we really want to be a part of making the world a better place," adds Sheila Klasovsky, a supporter of clean energy jobs.

The G-20 isn't just about Pittsburgh. It's really about the entire Rust Belt and how places such as Youngstown are rising out of the slag heap. The world is looking for a way forward and Obama is holding up Pittsburgh. In my mind, he's admiring Youngstown too.

Youngstown: Hell of an Opportunity

2009-09-23T08:42:00.000-07:00

My wife is a Pittsburgh native and she makes fun of my Youngstown efforts almost on a daily basis. The energy of a place is difficult to communicate. I'm left using obscure concepts such as "liminal" in an attempt to describe why I'm all in on Youngstown. Mostly, I borrow other voices so I don't sound so crazy:

As a venture capitalist in sunny (and smug) Santa Monica, who happened to often travel to Michigan, I'd heard every possible joke and put-down about the Michigan economy (you know, how it's cheaper to buy a foreclosed house in Detroit than a decent used car, but at least you can live in the car if you have to, ha ha ha.) Well, I'm not laughing any more. This summer, I decided to move my wife and three little kids away from the sunny beaches and new media millionaires of Southern California to -- you guessed it -- Michigan.

Yup, we bought a one-way ticket to Michigan. Five of them, actually.

What was I thinking? Don't worry, you're not the first to ask. For several months I've been explaining my decision to friends, family and work colleagues. Why walk away from good weather and a sweet gig investing in new media companies for a cold, Rust Belt state that's been hemorrhaging jobs and hope for decades?

Quite simply, because I believe it's a hell of an opportunity -- despite the jokes, the put-downs, or the perceptions of Detroit as a lost city -- I wouldn't be moving to Michigan if I didn't.

The passion for home is obvious and most people understand that motivation. Less discussed is the hearth that has forged visionaries who left in search of bigger things. The Midwest is supposed to be parochial and stale, risk averse. Nonsense. The exodus from the Rust Belt is a measure of the enterprising nature fostered in the industrial leviathan. The innovative spirit that so many lament is long dormant simply moved somewhere else to build the likes of Charlotte and Dallas.

The Sun Belt boom is over. California Dreaming is now more about getting in touch with your inner Okie. Rust Belt refugees, such as myself, are looking for the next big thing. That's Detroit. That's Youngstown.

Right-Sizing Youngstown

2009-09-22T09:44:00.000-07:00

There is a different brand of Youngstown making its way across the country and even around the world. To be sure, the economic devastation of the Mahoning Valley is still prominent. But the innovative vanguard is making waves and even inspiring new corporate strategies:

Wangler believes the term “right-sizing” may have new relevance for the strategic thinking of truckers these days – and for one, he does not believe that if you can‘t make companies bigger, they‘re on a path to extinction.

He pointed to the revitalization of Youngstown, Ohio, as an example – an American steel town that with a population of 168,000 in the 1950s that seemed destined to grow forever, with city leaders back then envisioning the city being home to a quarter of a million people by the end of the century. Instead, by the 1980s, the steel industry had gone into a tailspin. Today, only a single, large steel mill is left and the city’s population is half of what it was in 1950.

While most of the mills have been torn down, the city has thousands of empty buildings and it still has 535 miles of roads that need to be maintained and kept free of snow and ice all winter. Like other Midwestern cities in similar straits, Youngstown tried to find some big employers to replace steel, such as prisons (both private and public), while also re-developing some of the former steel-mill sites into industrial parks. Yet none of those efforts ended up replacing jobs that vanished along with the steel industry.

Then in 2005, Youngstown elected Jay Williams, a former city planner, to be their mayor. He addressed the city’s problems with a radically simple concept –if the city removed its unused buildings and large chunks of un-needed infrastructure, it could then focus on improving its services and better align its expenses with tax revenues.

By reducing its obsolete infrastructure, the city could position itself for a much more sustainable future, one that might include a new era of growth, but not one that desperately needed growth to ensure its survival.

“Youngstown‘s approach to a future without foreseeable population growth is controversial,” said Wangler. “Accepting that a city is going to shrink, and even planning to help it shrink seems like a rejection of the American idea of progress, where a bigger city means more jobs, more tax revenues, better education, and better services.”

Yet he stressed that the “carrying capacity” of a city, or its ability to sustain its residents, is ultimately determined by its tax base, with the infrastructure needs of businesses and residents have to be balanced against available tax revenues.

“For decades, professors of urban planning have taught that the inability to grow a city‘s population is a terminal condition; all city planning strategies must revolve around growth, and city leadership should focus on stimulating that growth,” Wangler explained. “So is Youngstown just preparing for its extinction, or is it emphasizing quality over quantity? Well it‘s early in the new ballgame, but … it’s choosing an improved quality of life for its citizens by seeking creative alternatives to conventional growth.”

This idea of shrinking instead of growing in order to be more profitable is something that must wend its way into trucking, Wrangler believes. “Typically, [trucking] companies thrived for years by putting as many trucks on the road as possible and working to keep every truck on the road every day,” he said. “Unfortunately, declining freight volumes meant that more and more of those road miles were empty and unpaid miles.”

What, exactly, is the "new ballgame"? Demography is a big part of it. Shrinking cities are a global phenomenon. The wealthiest countries are aging and some are even beginning to lose people. Such realities demand a new economic paradigm.

When people consider an uncertain future, some of them are looking to Youngstown for a way forward. I would add that we need to embrace out-migration just as we make peace with a declining population. Ignore the handwriting on the wall at your own peril. Youngstown is one of the few places assessing the situation with open eyes. The world awaits the next round of civic entrepreneurship.

Learning From Youngstown

2009-09-21T13:23:00.000-07:00

I'm going to break my promise and bring up James Traficant. I do so only to reference an interesting use of Youngstown as a model of best practice:

In America, a similar situation existed in Youngstown, Ohio, which in 1963 was described by the Saturday Evening Post as "Crime Town, U.S.A."

Youngstown "exemplifies the truism that rackets cannot survive without two basic conditions -- the sanction of police and politicians and an apathetic public," the Post wrote. It went on to say: "The time now has come for action on the part of the whole citizenry. Until each honest man is aroused, the cesspool will remain. And Youngstown will remain a shame to the nation."

A culture of corruption continued to infect the Youngstown area well into this decade. Its congressman of 17 years, a bombastic Democrat named Jim Traficant, went to federal prison in 2002 after a jury in Cleveland convicted him on 10 counts of bribery and racketeering. Traficant was released from prison two weeks ago.

Residents of Youngstown who wanted to change the culture -- and to stop electing politicians such as Traficant -- went to Sicily to examine how people in that country attacked the mafia.

The suggestion is for Juárez, Mexico to look at how Medellin, Colombia tackled its corruption problem just as Youngstown studied Sicily. Despite all the fretting about Traficant's release, the dominant image for a journalist in El Paso is how Youngstown put a stop to all the insanity. It is a story of success, not the past coming back to haunt the Mahoning Valley.

That's the Youngstown I know, the one on the cover of Entrepreneur magazine. As for the Saturday Evening Post, that is long gone. Crime City, U.S.A. is now Dreamer City, U.S.A.

Mahoning Valley Hidden Delights

2009-09-18T12:58:00.000-07:00

Today's blog post from i will shout youngstown takes us inside an urban secret garden. The Mahoning Valley is full of such treasures. I argue that this is the essence of Rust Belt Chic, but every region has under-appreciated assets. The point is that there is a lot more going on in a shrinking city than an outsider would think and those strengths deserve celebration.

Another example is Just Pizelles, a cookie boutique that was recently featured on The Rachel Ray Show. There is nothing more authentic than a family run business, particularly when it comes to food:

It would not be possible without the help of my amazing family...from physically helping to 'drizzle', package, and do shows with me (my mother/partner); creating efficient ways to produce my products and develop ideas for multiple uses for pizzelles (my father/research & development); giving me ideas for new flavors and helping me set up my booth at shows (my husband/labor assistant); willing to monitor the quality of my creations (my brother/quality control); helping with fundraising activities, brainstorming about other markets to explore and fun flavor creations (my niece/marketing). My friends also make a huge contribution with their devoted support and the extraordinarily "hard" task of taste-testing my new "concoctions"!!!

Just Pizzelles is a relatively new and growing small business in an area that most people perceive as dead. Liminal Youngstown incubates ideas and risk taking. Geographically independent ventures are particularly robust here. If it doesn't matter where you do your thing, there are few places as advantageous as the Mahoning Valley.

Nanette Lepore Opens Boutique In Youngstown

2009-09-17T12:46:00.000-07:00

There's a crisis in the fashion industry. London is fretting over losing young designing talent. In New York, the very existence of the Garment Center is threatened. (Nanette Lepore is a blogger!) The economic geography of fashion may be in a state of flux. That's where Youngstown comes in:

Retailers and their customers are asking for color these days, and that's right up the design table alley of Youngstown-native Nanette Lepore. For Spring 2010, her swinging dresses, feminine tops and sassy shorts shone in a tropical palette of blue, orange and mustard yellow, with a few khakis and deeper blues to calm things down a bit. Prints were plentiful, stripes and florals often in the same outfit.

The passage above is from the Cleveland Plain Dealer. What outsiders don't know about Cleveland, Pittsburgh and (dare I say it) Youngstown is just how cosmopolitan many of the residents are thanks to growing up in close proximity to world class cultural amenities. That Nanette Lepore is from Youngstown isn't some bizarre random occurrence, an anomaly.

I make mention of the Cleveburgh disposition because of a recent conversation I had in Youngstown. The idea discussed was Ms. Lepore opening a store in her hometown. But who would shop there? Obviously, people from Cleveland who read about fashion in their local paper. I'd bet plenty of folks in Pittsburgh recognize the Lepore brand.

Perhaps the Pittsburgh market doesn't justify a shop. Nor would an exclusive Cleveland location. But combine the two cities and you have critical mass for an economic niche found only in the likes of London and New York. Dream even bigger and imagine the Garment Center in Youngstown, appropriating declining manufacturing space as it did in Manhattan.

Super models strutting through the Mahoning Valley? Believe it.

Mahoning Valley Green Jobs Campaign

2009-09-16T09:10:00.000-07:00

At the Greater Youngstown 2.0 LinkedIn website, Sheila Klasovsky links to a letter to the editor in the Warren Tribune Chronicle:

Lastly, like our representatives in the House that already have supported the American Clean Energy & Security Act, we need the Senate to get behind this ''green energy'' initiative that wind power offers us, and in doing so help businesses grow in Ohio, including many in the Mahoning Valley area.

Regarding the above action item, Sheila offers an opportunity:

Letter Writing & National Call In Day to Urge Our Senators to Pass Clean Energy & Climate Protection Legislation THIS YEAR!!!!

Please Join Us:
~THURSDAY September 17, 2009~ Anytime btwn. 6:30 & 8:00pm
@ Lemon Grove Cafe & Lounge 122 Federal Plaza W, Youngstown, OH 44503

www.repoweramerica.org/getlocal
www.lemongrovecafe.com (check calendar of events)

Use the POWER of the pen to Repower America!!!!

I would encourage expatriates who would like to return to Ohio to lobby all four relevant US Senators. Regarding the Ohio two (Brown and Voinovich), be sure to make the point that more green jobs would bring you back home. Also, keep an eye on the developments in Pittsburgh, a city poised to become America's number one energy hub. That includes all types of green industry. Come to think of it, lobby the PA US Senators as well.

Tech Belt Buzz

2009-09-15T11:27:00.000-07:00

The Tech Belt Initiative isn't dead. I see the name mentioned in the news, here and there. The latest invocation:

If you live in the Northeast, or have an interest in high-tech entrepreneurship, you may have heard rumblings of a new Cleveland-Pittsburgh Technology Corridor.

The initiative, according to collaborators, “is an economic development strategy designed to reinvigorate the region by building on its unique civic, educational, healthcare and industrial institutions.”

The corridor would encompass Cleveland, Youngstown and Pittsburgh, which share common traits. Because all of these cities were built on a foundation of entrepreneurial spirit and innovation – and their success depends on their ability to generate new products, technologies and wealth – the idea makes a lot of sense.

Click here for a bit of Tech Belt resonance in Columbus. Stay tuned ...

Detroit Dreams Youngstown

2009-09-13T22:19:00.000-07:00

In just the three years I've been blogging, I've seen Pittsburgh go from the punchline of a joke to a city that everywhere else is trying to emulate. Believe it or not, Youngstown is going down the same road. The word from Detroit:

At the time of "Driving Detroit," the plans by Youngstown, Ohio, to shrink itself smartly was starting to get attention. Youngstown is a much smaller city, but I realized then that Detroit needed to do the same thing. Two years later, I'm even more convinced that Detroit should become the nation's biggest city to "right-size." ...

...The next steps are complicated and largely uncharted. Moving residents into more densely populated districts has legal and moral implications; it must be done with care and the input of those who would be moved. And what do you do with the empty space? The city is already dotted with big vegetable gardens, and one entrepreneur has proposed starting a large commercial farm. Some people advocate bike paths, greenways, and other recreation areas. Surrounded by fresh water, and buffeted by nature reasserting itself on land where factories used to be, Detroit could someday be the greenest, most livable urban area in the country. A city can dream, can't it?

The city title of "Dreamer" is already taken.

Detroit is at a crossroads. As suggested, it might look to Youngstown for inspiration. Another model is Pittsburgh. I think Detroit is too big to pull a Youngstown. In terms of area, it might be too big to pull a Pittsburgh. The city needs its own redevelopment paradigm. And perhaps in a decade, or two, people will talk about pulling a Detroit.

Moving To Youngstown

2009-09-11T10:07:00.000-07:00

Among those interested in returning to the Steel Valley there are lots of questions about where to live and how to manage the move. One of the issues concerns access to the amenities enjoyed at the current expatriate residence. That's a difficult riddle to solve. However, a better focus is on the opportunities that a Youngstown residence might provide. Some advice from a family who left the Mahoning Valley for Chicago:

Motivations vary from person to person and family to family, but often it's a mix of factors involving lifestyle choices, emotional comforts, health-care decisions and economic concerns. Thomas says her primary motivation was simple: "I was by myself too long." Having been widowed 13 years ago, she found herself living alone in her large Youngstown home, and each of her four daughters had left Ohio after graduating college. With two of her children settled in Chicago and another in Naperville, the choice to move here made sense.

"My kids wanted me to be by them in case I needed anything," she says. "Before, I saw my grandchildren two or three times a year. Now I see them, like, every other day. I go to their games. I'm part of their life now."

The move also provided an opportunity to downsize, which made economic sense. "I don't have to worry about taking care of the house and the grounds. I had a big Colonial house and an awful big yard in back," she continues. "I was paying taxes on it, and the upkeep . . . I'm better off here. It's cheaper."

I'm sure this tale of Youngstown out-migration strikes the reader as strange. But there are a couple of points worth emphasizing. First, extended families are trying to get back together. Wonderful if all your kids end up in the same place (more common than one might think), but the ties to mom and dad often encourage those who left to return home. There's an excess of large and inexpensive housing stock in the Rust Belt well suited to intergenerational living arrangements. The economics of boomerang migration could be a compelling value proposition if leveraged in the right way.

A second point is the matrilineal nature of diaspora communities and the return home. In most nations, women are seen as the bearers of culture. This is reflected in contemporary citizenship law. The typical tradition is that the men leave, but the women stay to maintain the thread with the past. If a couple from two different locales marries and looks to be near family after having kids, the woman's hometown usually wins.

In other words, keep track of where the women of Youngstown go.

Green Youngstown

2009-09-10T11:32:00.001-07:00

Youngstown oriented blogs are doing a good job of getting the word out about this Saturday's Grey to Green Festival. The event is a perfect place to network with the people moving the community forward and plug into the energy transforming the Mahoning Valley:

Organizer Atty. Debra Weaver says this year’s festival will include more exhibits and activities, and will also feature a nationally-known speaker. The festival runs Saturday from 10 a.m. to 5 p.m. at Wick Park. ...

... Weaver adds that Youngstown Mayor Jay Williams and U.S. Rep. Tim Ryan (D-17) will make opening remarks at 10:30 a.m. in the Wick Park Pavilion. ...

The Grey to Green coalition, as she likes to refer to it, is made up of members from the following groups and organizations: Youngstown State University, The Raymond John Wean Foundation, Grow Youngstown, Art Youngstown, Youngstown CityScapes, Defend Youngstown, Treez Please, the Green Team, Oakland Center for the Arts, Youngstown Litter Control and Recycling, Commonwealth Inc., the Northside Farmers Market, TCT Renewable Energy, Lien Forward Ohio, The Villa Shoppe, Mill Creek Metroparks, YSU SMARTS, Children’s Center for Science and Technology, Animal Charity, the Alliance for Climate Change, TimeBank Mahoning Watershed, the Audubon Society and other environmental organizations and businesses.

Count Greater Youngstown 2.0 as a member of the coalition. We will have a table at the festival manned by Mr. Peanut.

Steel Valley Innovation Cluster

2009-09-09T12:15:00.000-07:00

When Youngstown grows up, what kind of innovation hub will it be? Ohio has a bunch of cities (too many?) competing for scarce resources. Ideally, each region focuses on a specific economic strength. Dayton has staked its claim:

“Ever since the Wright Brothers cemented Dayton’s place in aerospace history by inventing the airplane here, we have been creating an economic base built around invention, creativity and originality,” added the mayor of Dayton, Rhine McLin. “Today’s Hub designation further solidifies the strong relationship we have forged between such institutions as the University of Dayton Research Institute, Tech Town, and Wright Patterson Air Force Base. These relationships have helped create a powerful knowledge center that attracts talented professionals and technical expertise worldwide.”

Cleveland should have the edge on biotech. Toledo with its budding solar panel industry looks like a lock for green technology. I'm not sure what Cincinnati would chase. How the Mahoning Valley fits within Ohio's Hub initiative is anyone's guess.

I don't think Youngstown needs Hub love. A place at the public trough is always nice, but the aims of the program are redundant:

To be designated an Ohio Hub, a region must identify core strengths and develop a strategic plan for urban revitalization. A Hub designation is a commitment from both the state and region to work collaboratively and target development efforts toward building upon those identified strengths, the governor noted.

Youngstown 2010 is a strategic plan for urban revitalization and the Youngstown Business Incubator, among other entities, is developing an innovation cluster that fits nicely in that framework. Dayton isn't there yet. You might even notice some Youngstown-envy in Columbus. In some regards, the Ohio Hub program is an attempt to replicate Mahoning Valley success throughout the state.

Geography Of Globalization In Youngstown

2009-09-08T11:31:00.000-07:00

What does a local geography of globalization look like? One obvious example is evidence of an international workforce. One neighborhood park in the city of my residence has a cricket pitch, indicative of all the South Asians with jobs at companies throughout the region. But there is a more important pattern that reveals the lack of integration into the global economy:

Gene Krebs, co-director of the anti-sprawl group Greater Ohio, said Columbus' growth has created an illusion that everything is fine when the city's core continues to hollow out with vacant and abandoned houses.

This regional doughnut shape is a lousy interface with globalization and the dominant knowledge economy. Thus all the interest in revitalizing downtowns. I don't think greater numbers of urban dwellers is all that important. On the other hand, the more bodies in the central business district the better. This is why I think you should consider Eric Planey's vision for Youngstown:

The reason I want to discuss my quality of life position is twofold. The first of which is that it is important for many to understand that certain intangibles in a community matter for economic development. And this certainly includes a flourishing arts community and a pedestrian-emphasized downtown corridor. It includes items such as bike trails that can connect New Castle to Lowellville to downtown Youngstown to Mill Creek Park to Canfield. I am amazed that in New York City, a city of 15 million people in a closed-in space, there are more bike-only dedicated trails than there are in the Valley. Connecting YSU, downtown Youngstown, and Mill Creek Park would create a golden triangle that other cities could only dream of having. Having bike trails in place is the most cost-effective and immediate bridge to such a connection. How cool would it be to get on your bike in Austintown, hook a left into Mill Creek Park, and to work up a thirst for an ice latte that can be quenched at an outdoor cafe on Federal Street? It is possible.

Youngstown has a number of remarkable assets that predispose the city to take advantage of the opportunities that globalization offers. The university is a stone's throw away from a compact and surprisingly active downtown. Mill Creek Park is truly an urban treasure and only lacks connectivity with the central business district. What Eric is proposing would increase the concentration of brains in the city core and more effectively plug Youngstown into the international community, a gateway to the Mahoning Valley.

James Traficant Diaspora

2009-09-04T07:49:00.000-07:00

This is my last post on the return of James Traficant to the Mahoning Valley and then I'll leave well enough alone. My perspective is how this story resonates throughout the Rust Belt. This occurred to me while reading an editorial about Traficant in the Cleveland Plain Dealer:

His crimes reinforced Youngstown's reputation for corruption, a huge deterrent to outside investment. His rants in Congress ensured his isolation and embarrassed his district. Worst of all, his embrace of angry victimhood -- his and his district's -- as a political strategy gave his struggling constituents an excuse not to face the realities of a global, knowledge-based economy.

That last sentence describes, in a nutshell, why so many urban industrial powerhouses are now struggling. Most shrinking cities are keen to play the victim instead of figuring out how to take advantage of a new political-economy. Aaron Renn (The Urbanophile) touches on this theme in his admonishment of the worst of Midwestern culture:

This sort of attitude is so self-defeating because it is toxic to talent attraction. The Midwest requires that anyone who lives there surrender his ambitions, or else be subjected to endless questioning, discouragement and ridicule. Who is going to sign up for that except someone with some pre-existing roots or connection there? Not very many people. Locals seems to recognize this and don't even attempt to market to the world at large, focusing all efforts on retention of home grown talent and boomerangers.

There's a counterculture movement going on in Youngstown and Traficant's return offers a benchmark that measures how far the city has come. The Plain Dealer editorial is a thinly veiled shot across the bow of the Cleveland leadership. We see a similar epic playing out in Detroit. Hat tip Politics and Place, the rumblings out of Johnstown, PA should seem familiar to those who abhor what Traficant did. Ironically, most of the Rust Belt is now eating Youngstown's dust. While the world celebrates Pittsburgh, it would be wise to head west on the turnpike and take a gander at the Mahoning Valley Miracle.

Tech Belt Expatriate Talent

2009-09-03T07:30:00.000-07:00

(Hat tip Null Space) Pittsburgh graces the cover of the latest Site Selection magazine. Skimming the article, a passage catches my eye:

As Labor Day approached to end the summer of 2009, 20th Century Fox was approaching Pittsburgh to film its $90-million action thriller "Unstoppable," starring Denzel Washington, thanks in part to an incentive program to attract such activity to the Commonwealth. But it also came thanks to having a new place to do its work: Mogul Mind Studios, which is investing $30 million to renovate the former Pittsburgh Flat Roll complex in the Strip District along the Allegheny River.

The tracks that used to carry raw material for steel products now carry the locomotive at the center of that film's storyline. John Yost, a Pittsburgh native and CEO of Mogul Mind, hopes the runaway train is a perfect metaphor for the growth potential of entertainment production in the region. ...

... 2008 saw 11 productions with a $50-million economic impact come to southwest Pennsylvania, drawn in part by that 2004 film incentive program offered by the state. Yost says he'd like to see the $75-million program remove its cap: "If it was unlimited, we'd literally take all of those runaway projects from Canada and bring them here," he says, pegging the cost advantage over a Hollywood production at between 20 percent and 30 percent – "It will be 30 to 40 percent when I'm done," he says.

Asked if he looked outside the area for his site, Yost said, "Never. I'm a kid from Pittsburgh. I lived in New York and in Germany, but I'm a kid from Pennsylvania. If I were to run for president, my attitude would be 'America first.' So here's my attitude – Pennsylvania first. We have a tremendous brain drain, with wonderful minds leaving our state to find jobs."

He says he's received a lot of queries from expatriate talent since his project first got going in summer 2008, people who "would love to come home."

From Cleveland to Pittsburgh, a lot of smart people want to return. But there isn't one place an interested person could turn. Greater Youngstown 2.0 intends to address this shortcoming.

Regardless, regional workforce development initiatives would be wise to direct more resources towards talent attraction and boomerang migration. What's the best approach to helping expatriates come home? We should think more about how to tap these Rust Belt refugees.

NEO Energy Economy and Talent Shortages

2009-09-02T11:28:00.000-07:00

Good news from the Fund for Our Economic Future. $2.2 million will be invested in NorTech and the Regional Talent Network (RTN) to help fuel the expected growth in the energy industry in Northeast Ohio. More about RTN's mandate:

The Regional Talent Network will use the funds to support the development of the network, an employer-led effort to strengthen the talent development system across the 16 counties of northeast Ohio. The network is in the formative stages and the fund’s grant dollars will be distributed as it achieves milestones, including developing an organizational structure and conducting an assessment of the trends and gaps in the supply and demand for talent in the region, officials said.

I'm concerned about the region's ability to meet the coming talent demand. More than local labor mobility and workforce development are needed. I propose diaspora talent network, which can locate skilled workers wherever they may live.

I live in the Front Range of Colorado. The "talent development system" here is already oriented towards the energy sector. Like any other community, college graduates tend to leave the area. Many of them could end up in Northeast Ohio if we establish the pipeline. I hope both RTN and NorTech will keep this geography in mind as energy businesses begin to grow and the scramble for talent begins in earnest.

Liminal Greensburg, Kansas

2009-09-01T10:12:00.000-07:00

Perhaps my most popular post at the Burgh Diaspora blog is titled "Liminal Youngstown". I won't bore anyone with the social theory behind the term liminal space. Suffice to say, Youngstown is a place where the cultural fringe can thrive. This is where new ideas find expression.

Fellow blogger Brian Kelsey describes a liminal city in Kansas:

[Greensburg Mayor Bob Dixson] also said something that really resonated with me. He said that Greensburg was lucky to have the entire town destroyed, as opposed to only 50 percent of it. The storm did not divide the town into the haves and the have-nots; everybody lost everything. According to Mayor Dixson, that's one reason why the rebuilding efforts have been so successful. The entire community owns the process.

A tornado practically wiped Greensburg off of the map. The disruption opened up liminal space that allowed the unusual suspects to lead the way for remaking their home. Katrina did the same thing for New Orleans. For Youngstown, it was Black Monday. In today's Detroit, it is the Great Recession.

But why did it take so long in Youngstown for the liminal space to appear? Ironically, Black Monday didn't do enough damage. There were still enough spoils for the likes of James Traficant. His criminal conviction was the last tie to the old way of doing business. When the feds put him behind bars, Liminal Youngstown was born.

Why The Garden Club Could Destroy Youngstown

2009-08-31T10:19:00.000-07:00

I Will Shout Youngstown points to a troubling rebuttle to the letter from Regional Chamber CEO Tom Humphries. Humphries should be commended for his leadership and his public rejection of the cronyism that is responsible for the protracted economic slump that devastated the region. Silence on the return of James Traficant is tacit approval of his criminal activity. I wouldn't invest money in a community celebrating a convicted felon. Most of the world shares my caution. Ever wonder why Russia struggles to attract foreign dollars?

All of this comes at a time when Youngstown is better known for innovative approaches to urban decline than backwards parochialism:

I haven’t forgotten that we’re still in the midst of a recession that has hit low-income neighborhoods particularly hard. But new models of community development based on collaborations that go beyond “public-private partnerships” seem to be gaining traction — especially when they mobilize a broad constituency for change. ...

... Youngstown, Ohio, another “dying city,” nonetheless offers some important examples of social entrepreneurship. The New Deal for Communities program developed in Britain explicitly seeks to improve community cohesion.

The world of Traficant and those who would quietly ignore his return are unable to "mobilize a broad constituency for change." This is the crux of Sean Safford's critique in "Why the Garden Club Couldn't Save Youngstown". On the other hand, Humphries represents those who would move the community forward. The door is open to anyone who wants to take part in the economic revitalization of the region. It isn't a club or a list of Who's Who Youngstown. That this movement has upset the established the order of things has ruffled more than a few feathers.

Youngstown Diaspora: View From Evansville, Indiana

2009-08-30T07:17:00.000-07:00

Reading the missive of president and CEO of the Regional Chamber Tom Humphries about relegating James Traficant to the past, I can see how far the Mahoning Valley has come over the last five years. Concerning the expatriate perspective, Youngstown still has a lot of work to do:

Allentown has largely rebounded through private investment, nurturing entrepeneurship and diversifying its economy. Youngstown is showing some signs of rebirth, but it is largely driven by public — not private — investment. A visit to the city in July showed that it still has a long way to go to recover the vibrance I saw there as a child.

I realize that Sean Safford's book, referenced in the opinion piece, is a sore point. Furthermore, the Youngstown native is asking Evansville, Indiana to choose between the paths of his hometown and that of Allentown, PA. However, the thread tying all the narratives together is the burying of the past. That includes the "vibrance" of yesteryear.

There are a number of Rust Belt communities, such as Evansville, that are well behind Youngstown. What Safford celebrates in Allentown is now happening in Youngstown. This is what congressman Tim Ryan represents and why Traficant is now an amusing anachronism.

Exporting Brains

2009-08-28T09:49:00.000-07:00

Trying to stop brain drain before it starts is a futile, and ultimately counterproductive, exercise. More promising, particularly for Rust Belt communities, are helping expatriates return home. Norfolk, Nebraska has a useful tip:

“You tend to hear about the problems and think all the kids want to get out,” said Brandon Day of Norfolk. “The survey tells us that’s not really true.” ...

... “We give a lot of lip service to the problems of declining population and brain drain,” Day said. “What we’ve done is adopted this defeatist attitude, and we don’t ever take any steps to do anything about it.”

Day serves as a board member of the Norfolk Area Recruiters, a group to attract graduates from the Norfolk area to return to the communities where they were raised.

While the group’s work has proven to be successful, it’s much more difficult to wait until young people go off to school, establish themselves in another community and then try to recruit them back to the area.

That recruitment process needs to start much earlier, he said.

“We need to give them some ownership in the community and make them feel from the get-go they have a vital role in the community. . . . We won’t see the results for at least five years, more likely 10 years, but that doesn’t mean it shouldn’t happen,” he said.

That makes a lot of sense. The likelihood of return often depends on the strength of the ties that bind. One way to start the recruitment process earlier is to help graduates leave. Connect them to the out-of-region experience they need through other people who have left the area.

Even Norfolk has a diaspora, a community often not considered when touting the region's human capital assets. That's a huge oversight. A town alumni network can pave the way for career success and keep talent connected to home.

Grey to Green Festival

2009-08-28T08:19:00.001-07:00

Since the Regional Learning Network graced my inbox this morning, another plug for the Grey to Green Festival:

Wick Park, Youngstown, Ohio
11am Keynote presentation
3pm Panel discussion

For more details visit the Regional Learning Network site...you don't want to miss this!

Will Allen, founder of Growing Power and one of the world’s foremost experts on urban farming, is the keynote speaker at the Grey to Green Festival in Wick Park in Youngstown on Saturday, Sept. 12.

Allen, recipient of the 2008 MacArthur Genius Award and recently featured in the New York Times Magazine, will speak at 11 a.m. in the pavilion in Wick Park.

Allen will also participate in a panel discussion, “Economics, ‘Food Racism’ and Urban Agriculture,” at 3 p.m. in the Unitarian Church across from the park.

The appearance is sponsored by Grow Youngstown, Youngstown State University and the Raymond John Wean Foundation.

The Grey to Green Festival features entertainment, educational exhibits, children’s activities, “green” vendors, healthy food, a Farmers Market, Magic Carpet Theater, composting, artists, energy assessment activities, recycled products and a Wick Park historic tour. Wick Park is located across from Stambaugh Stadium on Fifth Avenue in Youngstown.

For more information on Allen, visit www.nytimes.com/2009/07/05/magazine/05allen-t.html. Or, visit the Growing Power Web site at www.growingpower.org.

Follow The Green

2009-08-27T10:05:00.000-07:00

The picture is coming into focus. We are past the point of promising. The opposition has launched a critique:

[Van Jones, a Bay Area activist and author who would be brought into the Obama administration as green jobs czar in March,] talks up the need for a "green New Deal" that will "help our Rust Belt cities blossom as Silicon Valleys of green capital." But scroll through the websites and reports of the many organizations with which he's been connected, and one begins to suspect that this "green" commitment is less about nature than about welfare--for inner-city residents without the skills or knowledge to compete in a 21st-century economy, and for the professional poverty organizations that collect the money for government job-training programs.

That's in The American Spectator and the intent is to expose the green jobs charge as folly. Boondoggle or not, the money is in the pipeline. A lot of it will land in Tim Ryan's and Jason Altmire's Tech Belt. Pittsburgh is already basking in the glow of President Obama's love. Thus, the GOP is eager to find the flaws in the White House plan. This is a done deal.

The emerging US energy policy narrative will translate into a lot of jobs and, as fiscal conservatives would complain, federal tax dollars for Cleveburgh. Green doesn't just mean cutting edge alternatives. It also includes nuclear power and natural gas:

Earlier this year, President Barack Obama proclaimed that the US could "become the world's leading exporter of renewable energy".

His Energy Secretary, Steven Chu, is a highly respected environmentalist and the Obama administration sees natural gas as a transition fuel that can help lead this country towards a new clean economy.

Many in rural Pennsylvania are also optimistic. The gas industry is leasing land from local owners - there is good money to be made. But not everyone is happy.

That last sentence offers important caution. There are serious environmental concerns. But it also speaks to the scale of investment. The gas rush is on, at a time when prices are at all-time lows. As more energy demand shifts to natural gas, and it will, the fuel will become more expensive and profitable. This is why Obama is going all in on Pittsburgh. And this is why V&M Star is investing $1 billion in its Youngstown plant. The money is beginning to follow all the rhetoric.

Exal: Our Aluminum. Your Canvas.

2009-08-26T13:31:00.000-07:00

Breakfast Briefing: EQT And The Natural Gas Industry in Western Pennsylvania: A Proud Past. A Bright Future.

2009-08-26T07:56:00.000-07:00

On the heels of yesterday's post, some of you might want to attend this event:

Please join Murry Gerber, Chairman and Chief Executive Officer of EQT, as he discusses how a rich history and new technologies have recently made it economically feasible to recover natural gas from the Marcellus formation; a resource that has the potential to stimulate the biggest economic boom since coal and oil availability sparked the Pennsylvania industrial revolution. As the largest natural gas producer in the Appalachian Basin and the 14th largest in the nation, EQT is well positioned to play a major role in the development of this rich local resource. It owns the right to develop more than 400,000 acres of Marcellus reserves and has the technology necessary to extract Marcellus gas economically and with a small environmental footprint. Development of the Marcellus is in its infancy, but if Pennsylvania provides a friendly business climate which promotes development of this resource the potential benefits are unlimited.

Energy Economics And Youngstown

2009-08-25T09:11:00.000-07:00

Update: Read "An Emerging Giant: Prospects and Economic Impacts of Developing the Marcellus Shale Natural Gas Play". Quote of note - The Marcellus shale is the largest unconventional natural gas reserve in the world.

----------------------------------------------------------------------------------

I've prodded my Pittsburgh readers of the Burgh Diaspora blog to pay close attention to the nuclear and natural gas energy markets. I've even offered a geopolitical primer to help those interested make sense of all the news. Via Knowledge Problem ( a must-read blog), an interesting tidbit about America's emerging energy portfolio:

While an early R&D effort died following the first Gulf War, Yergin said the interest today in energy technology is huge and will "only be further stoked by the substantial increases that are ahead in government support for energy R&D. Much of that spending and effort is aimed at finding alternatives to oil. Yet the challenge is not merely to find alternatives; it is to find alternatives that can be competitive at the massive scale required."

One point Yergin mentioned in our interview but not the article: the huge potential of so-called unconventional natural gas in the U.S. thanks to the coming together of a number of technology break-throughs.

"Only in the last two months or so has Washington awakened to the reality of unconventional gas," Yergin said. "There was no master plan here, no 10-year technology road map. It was just a question of finding a combination to pick that lock."

How is this relevant to Youngstown? The V&M Star deal between Youngstown and Girard is one of the lynchpins:

V&M Star produces steel pipe and tube for primarily the natural gas market and is contemplating spending nearly $1 billion to expand its rolling mill. For months, Mahoning Valley officials have said that acreage in Youngstown and Girard is considered the strongest contender for the project.

This technology makes the extraction of gas from the Marcellus Shale much more economical. V&M Star's substantial investment is indicative of the expected upside for this method of extraction, most of it happening in relative proximity to the Steel Valley. Furthermore, as regular readers of this blog should know, Tim Ryan is a conduit for federal R&D dollars in the alternative energy sector.

There's a boom coming. Greater Youngstown needs to position itself to take full advantage of the opportunity. We at GY 2.0 are already busy in anticipation of looming workforce needs.

Youngstown Newcomers

2009-08-24T10:31:00.000-07:00

"Why would you want to move here?" Youngstown needs to answer that question. That's one among many lessons that New Orleans can teach the Steel Valley:

Cities with high percentages of natives have many positive characteristics, including "a strong sense of local culture, deeply rooted historical legacies, and extensive family networks, " said Richard Campanella, a Tulane University geographer and author.

But there are downsides, too. Such cities tend to be economically depressed and stagnant, Campanella noted, and as a result may have "an inability to attract outsiders."

Campanella's analysis describes almost the entire Rust Belt. Shrinking cities desperately need more outsiders. However, I argue that strong nativism has another upside, robust diaspora networks. Along these lines newcomers can learn about Youngstown and what the region has to offer.

At Greater Youngstown 2.0, our hope extends beyond reaching out to prospective boomerang migrants. We aim to attract newcomers with the same kind of opportunities one can find right now in New Orleans. But this project starts with the people already living in the Steel Valley, moving the region forward. Get in touch with us and find out how we can help.

Frontier Paradigms: Chaos v. Opportunity

2009-08-22T14:18:00.000-07:00

When I was an undergraduate at the University of Vermont, I was enamored with the Russian Far East. My plan was to follow in the footsteps of Richard Feynman acolyte Ralph Leighton and explore the steppes of Tuva. The collapse of the Soviet Union ruined my chances to study abroad in Irkutsk and explore the wilds of Siberia. At the time, this part of Russia was my frontier ideal.

Given my recent experiences in Pittsburgh and Youngstown, I've developed a different concept of frontier. In doing so, I make a distinction between chaos and streamlined bureaucracy. Surprising access to power is not the same as the absence of power. Consider La Paz:

This new trend of 'cocaine tourism' can be put down to a combination of Bolivia's notoriously corrupt public officials, the chaotic "anything goes" attitude of La Paz, and the national example of President Evo Morales, himself a coca grower. (Coca is the leaf, and cocaine is the highly manufactured and refined powder.) Morales has diligently fought for the rights of coca growers and tossed the US Drug Enforcement Agency (DEA) out of Bolivia. While he has said he will crack down on cocaine production, he appears to be swimming against the current.

Thanks to Foreign Policy's Passport blog for bringing that story to my attention. Head to La Paz if you want to openly snort cocaine without fear of getting busted. That might be good for a thrill, but it won't spur innovation and growth. Nice place to visit, but I wouldn't want to invest in it. This is how is see the frontier in Detroit.

Youngstown is somewhere between Detroit and Pittsburgh. There isn't the stuffy, old guard you find entrenched in Southwestern PA. But the local government isn't AWOL, either. Come to think of it, New Orleans has gone from Detroit-like implosion to Youngstown-like innovation in just a few years. Anything goes Nawlins didn't do much for the regional economy. Entrepreneurial NOLA is a different world. This is how I see the frontier in Youngstown.

You have a good idea? Take it right to the top and make your pitch. Expect much more than just cheap real estate.

Detroit Versus Youngstown

2009-08-21T10:15:00.000-07:00

Over the last week or so, I've spent a lot of time thinking about the urban frontier comparisons between Detroit and Youngstown. Detroit is the media darling of right now. But I think Youngstown is in much better position to take advantage of the ample political space a dramatic economic collapse creates. One reason is the respective size of each city. Sometimes, smaller is better:

Why did Pittsburgh win the iPhone App "space race" when Boston announced their app over a month ago? Is it because we have a younger mayor? No. It's because we're small. Less bureaucracy means more flexibility.

That's a good way to describe what I term "ample political space". Pittsburgh's power base remained largely intact during its dark years (e.g. Allegheny Conference on Community Development). There isn't a wild west opportunity in the region. But its smaller size, relative to Boston, might make it more nimble.

But if you really want to see "less bureaucracy" at work, then head to Youngstown. Given the compact development, almost everyone is rowing in the same direction. On the other hand, Detroit is unwieldy and chaotic. The city is big. Really big. Good ideas aren't likely to run into each other as they would (and have) in place such as Pittsburgh.

In Detroit, there is anarchy. In Youngstown, there is very little bureaucracy. That's the big difference between those two urban frontiers.

Youngstown CDA Communicator

2009-08-20T09:34:00.000-07:00

Greater Youngstown 2.0 is happy to help the Steel Valley concerned publicize events and generally get the word out. The Youngstown Community Development Agency (CDA) has jumped into the world of social media with a blog of its own:

This blog is your place to read about achievements within the CDA and city. There's also going to be some topics that can lend themselves to a bit more regularlity. Expect monthly updates on board of zoning appeals, planning commission agendas, and design and review meetings.

It's also a good place to check out what plans the department has for future community development. Posting statistics about demolitions completed and properties land banked is obviously necessary, but these numbers aren't really noteworthy unless they are pieces of the greater whole, laid against the backdrop of a plan. So expect to find here not only a list of what the CDA has done, but also some thoughts on the department's long term goals and aspirations.

I'm a commissioner for planning and zoning in Longmont, Colorado. At our last meeting, we talked about community outreach and the need to provoke more input from residents. A blog is a great way to do that. I hope the people of Youngstown will avail themselves of this resource.

Blog Release: Grey to Green Festival

2009-08-19T10:56:00.000-07:00

The second annual Grey to Green Festival will be held on Saturday, Sept. 12, 2009, in Wick Park on Youngstown’s North Side from 10 a.m. to 5 p.m. The entire festival is free and open to the public and will feature displays and information booths by green non-profits in the area, as well as vendors, healthy food, live entertainment, and earth-friendly activities for children.

As reported in the Wall Street Journal last year, Youngstown’s 2010 Plan has a large “grey to green” component, which provides for protection of the current green space in the city, such as public parks, and also encourages the positive use of green space that is created by the shrinkage of the city, for example, vacant lots created by demolition.

Grey to Green is designed to increase awareness of environmental issues in general, the grey-to-green component of the 2010 plan, and the revitalization plan for Wick Park. Located in the heart of the city near Youngstown State University, Wick Park is a lovely Victorian-era green space populated primarily by large oaks and ringed with a fitness trail, wide sidewalks, handsome old mansions, and broad avenues. The plan for the park focuses on drawing more activity into the interior, creating diverse habitat for plants and animals, and encouraging biophilia and a closer tie to nature in the city.

There will be numerous vendors and educational exhibitions at the festival as well as a Drop in Shop where you can bring your unwanted household goods, drop them off and take something else home. Most usable/working/non hazardous household items are accepted, however please do not bring chemicals, computers and electronics, gas cans, hospital, water, or sofa beds, hot water tanks, paint, piano’s or organs, scrap metal, solvents, tires, or trash.

Children’s activities will include a visit with Dora the Explorer as well as numerous arts and crafts activities. Rob Joki, and the Magic Carpet Children’s Theater will also be premiering a new play with an environmental message.

Adult entertainment will include various bands, acoustic performers and dancers. Brady’s Leap will be kicking off the festival at 10:00 AM at the Wick Park Pavillion. For the more serious minded we are very happy to announce that our speaker is Will Allen from Growing Power.

Wonderful organic food will be available from a variety of local chefs, and from vendors at the Northside Farmers Market which is collaborating with the Grey to Green Festival to festival to bring delicious organic food to festival attendees. Food will be available across the street from Wick Park at the Unitarian Church on Elm Street.

Information about vending or display opportunities is available by emailing organizer Debra Weaver at grey2green1@gmail.com or by calling (330) 744-1748. The Grey to Green Festival may also be found on Facebook.

Don't Blame NAFTA

2009-08-18T08:34:00.000-07:00

Blame Girard Mayor James Melfi. Blame the parochialism retarding economic development throughout the entire Rust Belt. If the Mahoning Valley continues to struggle, then the residents and leadership are at fault. If the region is to move forward, more cooperation between political entities is needed:

GSP is being paid $100,000 for the project, which is expected to be completed in early 2010, confirmed Chris Thompson, spokesman for Fund for Our Economic Future, a collaboration of foundations and individuals in the Cleveland region. Other supporters include the Youngstown-Warren Regional Chamber and Greater Cleveland Partnership, and the Allegheny Conference on Economic Development.

All are members of the Tech Belt Initiative, co-chaired by the Allegheny Conference, based Downtown, and the Raymond John Wean Foundation, based in Warren, Ohio. The initiative was formed last fall to reinvigorate the Cleveland to Pittsburgh region by building on collaborative efforts.

“We were hired to work with a number of technology organizations to identify a number of key areas the regions can come together around,” said Rich Overmoyer, GSP principal and director of its economic architecture practice.

The project GSP Consulting is working on is one to watch. But the Mahoning Valley seems unlikely to benefit, despite Congressman Tim Ryan's best efforts, as long as communities such as Girard continue to act out of fear. I am amazed how the status quo trumps a jump into an uncertain future at every turn.

A lot of lip-service is paid to various regional initiatives. Nothing seems to come of any of them. The Regional Visioning Project appears to be stillborn, flushing millions of dollars down the drain in the process. What can we do differently this time around?

Bringing Home The Brains

2009-08-17T15:01:00.000-07:00

I'm back from my trip to Youngstown, where I discussed our efforts to fill the talent pipeline to the region. I think the city has a good chance to be one of the Cleveburgh corridor innovation hubs. Not only is the downtown compact and in close proximity to a state university, but it is also surprisingly vibrant. All the action is along one street, stretching a few blocks. That's about the sum of activity for the entire area, but compare it to nearby Warren.

Warren's downtown is attractive. But the CBD is lifeless on weekends and after 5pm during weekdays. Much of the action is strung out along the strip development leading into the city. In that regard, Warren is quite similar in urban pattern to most of America. As for Youngstown, it is rebuilding from the core outward. The strip development has been left for dead.

The challenge is packing the center with more brains, who would benefit from all the serendipity I encountered while visiting. The place is already loaded with the kind of quirky activity that Eve Picker celebrates in a recent blog post:

Hot in New York City, some enterprising developers came up with this “lo-fi” version of the country club on a rented lot. The ultimate low cost swimming pool, dumpster dipping is accessible to everyone with a plastic bag. This is the mark of a great and creative city. Ideas that would be laughed at in small towns are revered here in New York.

Youngstown is an incredibly creative city. James Pernotto (who has an amazing studio downtown) and the crazy scene at the Oakland Center for the Arts are just two examples of the energy present along Federal Street. I went to a show at the Oakland (technically one block over from Federal) late Saturday night and had a blast. The downtown has a long way to go, but there is a very promising spark lit there.

To take full advantage, Youngstown needs a novel approach to talent attraction. That's where I come in. Communities spend a lot of money and other resources on brain retention. Israel is committing 1.6 billion in national currency to bring talent back home. But even that somewhat novel approach is too caught up in the blood lines of the brains:

While Israel is trying to fight brain drain and encourage scientists to make aliyah, the Immigrant Absorption Ministry has recently decided to cut its budget for absorbing immigrant scientists.

As a result some 200 olim scientists were fired this weekend by the universities that employ them.

The Absorption Ministry runs a project under which some 500 immigrant scientists are employed in Israeli universities, with the ministry sponsoring a part of their salaries.

However, budget cuts for 2009-2010 have forced the ministry to also cut back on its support of the program.

Well, the government wasn't too strapped for cash when it comes to luring scientists back home. That's the wrong approach for a country trying to spur job creation and win the war for talent. The same goes for Youngstown. Some of the diaspora will return, but the future of the city rests on the backs fresh blood. Greater Youngstown must, and can, attract more newcomers. What will bring people here? Look no further than Detroit for the answer.

Urban Frontier Geography

2009-08-12T09:24:00.000-07:00

Aaron Renn (The Urbanophile) wrote an exciting post about the urban frontier and its application in Detroit. Approximating greenfield economic development in Rust Belt cities is vital to their future. You might think of the Sun Belt as America's urban frontier during the 1980s. Migration to this part of the country was like a gold rush. But it isn't economic opportunity that defines an urban frontier. It is political opportunity, the obliteration of established power hierarchies and money circles:

Sarabeth Berman, a 2006 graduate of Barnard College with a major in urban studies, initially arrived in Beijing at the age of 23 to take a job that would have been difficult for a person her age to land in the United States: program director at BeijingDance/LDTX, the first modern dance company in China to be founded independently of the government.

Ms. Berman said she was hired for her familiarity with Western modern dance rather than a knowledge of China. “Despite my lack of language skills and the fact that I had no experience working in China, I was given the opportunity to manage the touring, international projects, and produce and program our annual Beijing Dance Festival.”

Ever toiled as an intern in the big city? In an urban frontier, you get to skip this step and move right into making your mark. You "bypass some of the dues-paying that is common to first jobs in the United States."

Of course, that is China. What about America? The best example is New Orleans. (hat tip Brewed Fresh Daily) The New York Times recently ran a great article about the urban frontier in the Big Easy:

Jon Guidroz, 27, is one of the entrepreneurs who was persuaded to move to the city. He grew up in New Orleans but was living in Massachusetts and working for Free Flow Power, a renewable energy company, after Katrina hit. “I wanted to return to help,” he said. But he said he did not see a strong business reason to move.

Then, last year, Sean Cummings, a real estate developer and entrepreneur in New Orleans, randomly found Free Flow’s Web site and noticed that the company had a Mississippi River project in the works. Mr. Cummings, 44, a co-founder of a group called Startup New Orleans, invited Mr. Guidroz to visit his offices in New Orleans at 220 Camp Street, a loft building called Entrepreneur’s Row. As an extra incentive, Mr. Cummings even offered to give him six months free rent.

“He helped me fulfill my dream of bringing this business to New Orleans,” said Mr. Guidroz, who moved back in January. “Until these guys rolled out the red carpet for me — immediate access to a substantial network in the city and state for getting things done, finding local investors — I don’t think we would have done it.”

On a smaller scale, the above is exactly what is going on right now in Youngstown. The Jim Traficant way of doing business is dead. Ideas, not deep connections and deep pockets, rule the day along with "immediate access to a substantial network in the city and state." I should know because I'm getting that treatment this Friday in Youngstown. Welcome to the urban frontier.

Expatriates Celebrate Youngstown

2009-08-11T09:24:00.000-07:00

George Bundy is a successful Bay Area entrepreneur. He's also connected to the Mahoning Valley. Recently, Bundy got wind of the renaissance in Youngstown:

What.. is this a joke? Nope, seems that Y-Town is on a comeback.

But it's not 1979, 89, or even 99.. it's 2009. Steel died in this rust belt valley in 1977, this article should have been written in 1979, not 2009. But, disappointingly it took well over 30 years for area to realize that their one trick pony (steel) was not coming back. Nobody wished harder, the "Good Old Days" of steel would come back, then the Mahoning Valley. Unfortunately, during the same time, the world (and business) passed "The Valley" by... year, after year, after year. Lets hope they have ultimately learned from the past 30 years.

Gee, someone should have told me Youngstown Ohio was "Where to Be an Entrepreneur". I would not have left.. 20 years ago!

I'm sure Bundy would appreciate yesterday's post about the struggles in Augusta, Maine. Relative to many other shrinking cities, Youngstown is ahead of the curve. Even if it took more than 30-years to start the economic transformation process.

George, the time has come for you to return to your home. Help Youngstown mind the lessons of the past and grow into the future. The urban frontier is calling.

Stuck In The Past

2009-08-10T09:38:00.000-07:00

The mills aren't coming back. Neither are the people. Augusta, Maine is beginning to come to terms with both these facts:

In May 2006, a suspicious late-night fire at the mill forced a reckoning: this once-mighty economic engine had become a skeleton of brick, filled with toxic chemicals that posed threats to the community and the river. To echo the writer John McPhee, who years earlier had witnessed the removal of Augusta’s mill-empowering Edwards Dam, it was time again for this city of 20,000 to say farewell to the 19th century, and perhaps to the 20th as well.

The global economy passed by Augusta. Twice. The problem is that the city did too good of a job hanging onto its productive history. Now, the last person out of town will kindly remember to turn out the lights.

What does the future hold for Augusta? Sadly, this story does not portend any hope. Reeling from the loss of industry, this city is still mourning.

More Kudos For Mahoning Valley

2009-08-07T13:54:00.000-07:00

Imagine Greater Cleveland looking at Greater Youngstown with envy. Well, that is exactly what is going on. Why? The Mahoning Valley is doing more than just talking about regional collaboration:

“They kicked butt. I don’t know any other way to put it,” remarked Chris Thompson, spokesman for the Fund for Our Economic Future.

That the two Mahoning Valley projects claimed two of the three grant awards came as no surprise, Thompson said. He recalled a meeting early on in the process with area government officials, during which one of them told his colleagues that they would support any local projects that made the cut, regardless of where they were located within the Valley.

“It was clear to me that the government officials there had each other’s back, for lack of a better term, and there was a real interest in making government collaboration real,” Thompson said.

I'd bet Valley residents are more accustomed to reading about the dysfunction of local government. Collaboration between political entities is very much the exception to the rule, especially in the Rust Belt. There is something special brewing in the area.

Outsiders are already noticing. We've got more initiatives in the works. The worm is starting to turn.

A Shiny New Life In Youngstown

2009-08-06T08:11:00.000-07:00

The Youngstown Paradox:

I've been so excited and relieved to be reading on Youngstown blogs about the hope and energy of the "new vanguard" that is striving to re-invent the city; it gives me hope, as an outsider about to fashion a "shiny new life" here. Even more so as Youngstown starts to get outside attention, as with the August Entrepreneur magazine cover and article.

However, at the same time, there is so much about the overwhelming weight of the past and the destruction of industry in the region, and the way that Youngstown is an iconic symbol of the decline, that I wonder if I am deluding myself...

In Rust Belt cities, the weight of the past often strangles hope for the future. (See the Detroit News videos about the GM plant in Lordstown and the fate of the Mahoning Valley) Understandably, residents are jaded. That's why outsiders are important. We see the other side of the coin. Relocation breeds optimism. Even an empty glass might seem beautiful.

Whether or not we are deluding ourselves is immaterial. If we believe in a place, in its people, then we can do anything. Just so happens that I think that is more true in Youngstown than anywhere else.

Piggyback On Pittsburgh

2009-08-05T06:26:00.000-07:00

One of the goals of Greater Youngstown 2.0 is to establish an infrastructure for better leveraging of publicity. The Entrepreneur magazine article is one example. How do we get that message out to prospective businesses and talent? Consider the logistics behind taking advantage of the G-20 summit in Pittsburgh:

Local leaders here are hoping to be more effective in getting out the message that Pittsburgh wasn't named the Most Livable City for nothing.

Dennis Yablonsky, the Allegheny Conference's executive director, said his staff was going to spend the next two months developing ways to tell the region's story to the world over the two-day convention next month.

"We need to get the message out about the Pittsburgh economy and the Pittsburgh transformation story," he said. "We're going to use that media attention to generate a pipeline of companies thinking about Pittsburgh."

There is absolutely no reason why the Steel Valley can't tell its story why the world is watching Pittsburgh. What brings Revere Data to Youngstown can attract other companies. Furthermore, proximity to Pittsburgh (and Cleveland) is a strong selling point.

Don't forget that 4 out of the 5 Greater Youngstown counties are part of the Pittsburgh Regional Visioning Project. Mayor Jay Williams is on the steering committee and the initiative finally settled on a name:

Power of 32

32 Counties, 4 States, 1 Vision

The Pittsburgh pitch is now much more than just Allegheny County.