Economic Revitalization Strategy Kittanning Borough
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C HAPTER 4: K ITTANNING E CONOMIC AND M ARKET A NALYSIS Introduction An analysis of the current and projected economic conditions was conducted for the Borough of Kittanning in order to understand the current economic dynamics in the area. The assessment included interviews with the Armstrong County commissioners, real estate brokers and property owners, and research derived from U.S. Census data, as well as consumer expenditure and retail trade data acquired from Claritas, Inc. and DemographicsNow. Economic Background Kittanning’s economy reflects the changing landscape of many river towns in western Pennsylvania that once relied heavily on manufacturing, production, and shipping as the basis of the local economy. Kittanning serves as the county seat for Armstrong County, with a base of professional firms, including attorneys and related occupations, serving the county. Downtown Kittanning provides an attractive location for businesses, given the beauty of the riverside and the prominent historic buildings that occupy the central business district. Despite these assets, downtown vacancies and an overall “tired and worn” appearance have detracted from the downtown business district and resulted in a decline in property values. A few new redevelopment projects, including the Rosebud Mining building on Market and McKean Streets, a prominent corner, have contributed to the appearance and vitality of the downtown.
The types of industries and occupations represented within the borough reflect the overall economy of Armstrong County and southwestern Pennsylvania. While data at the county level is more readily available, employment data by occupation and industry is more limited for the borough. The following table provides a list of major employers and their corresponding industry sectors for Armstrong County from the third quarter of 2007, the most recent data available. It is worth noting that Rosebud Mining Company, located in the Kittanning central business district, was identified as the fifth largest employer in the county. Armstrong County government was the sixth largest employer. Three of the ten top employers were governmental entities. Armstrong County ranked sixth, the State of Pennsylvania ranked ninth and the federal government ranked tenth. While these jobs generally are well-paying, stable positions, the dominance of government reflects the relative absence of larger private sector employers in the county.
Page 24 Table 1. Armstrong County Major Employers Major Employers 1 Industry Sector Armstrong County Memorial Hospital Health Care and Social Assistance Armstrong School District Education Services Allegheny Ludlum Corp. Manufactoring Creekside Mushrooms LTD Agriculture, Forestry, Fishing and Hunting Rosebud Mining Company Mining Armstrong County Public Administration Wal-Mart Associates Inc. Retail Trade Apollo-Ridge School District Education Services State Government Public Administration Federal Government Public Administration 1 3rd Quarter 2007 - Final Source: Pennsylvania Department of Labor and Industry Understanding the industries in Armstrong County provides an overview on the types of occupations available. The following table provides census data on the industries in Armstrong County from the 2000 U.S. Census with updates from the American Community Survey (ACS) for 2007. It should be noted that these are census estimates.
Agriculture, forestry, fishing and hunting, and mining 1,279 4.2%
1,350 4.3%
Construction 2,146
7.1% 2,134
6.8% Manufacturing 6,586 21.7%
4,683 15.0%
Wholesale trade 903
3.0% 988
3.2% Retail trade 3,792 12.5%
3,020 9.7%
Transportation and warehousing, and utilities 2,072
6.8% 2,323
7.4% Information 533 1.8%
539 1.7%
Finance, insurance, real estate, and rental and leasing 1,006
3.3% 1,603
5.1% Professional, scientific, management, administrative, and waste management services 1,473
4.9% 2,038
6.5% Educational, health and social services 5,914 19.5%
7,256 23.3%
Arts, entertainment, recreation, accommodation and food services
1,967 6.5%
2,856 9.2%
Other services (except public administration) 1,726
5.7% 1,407
4.5% Public administration 911 3.0%
987 3.2%
Totals: 30,308 100% 31,184 100% Industry 2000 2007
Source: U.S. Census Bureau, American Community Survey The following are highlights from the above industry table: •
In 2007, it was estimated that educational, health, and social services was the economic sector with the largest number of employed persons, accounting for 23.3% of those employed. This industry experienced the largest percentage increase of all of the industries, gaining 4%. Page 25 •
In 2000, the largest industry employer was manufacturing, comprising 21.7% of total employment. However, this industry experienced the largest decrease of those employed, losing an estimated 1,903 jobs by 2007, or a decrease of 40%. •
Arts, entertainment, recreation, accommodations and food services experienced the largest number of new employees by industry, with an additional 889 persons employed between 2000 and 2007. •
The retail trade industry employed over 12.5% of the total workforce in 2000. It is estimated that the percentage declined to 9.7% by 2007. The following table shows the top five industries in Armstrong County by employment level. This data corresponds closely to Table 2 (on the previous page) on the number of employees by industry.
Health Care and Social Assistance 197 3,032
$27,188 $36,979
Manufacturing 87 2,994 $39,974 $47,293
Local Government 101
2,409 $33,391
$38,343 Retail Trade 206 2,383
$19,720 $23,096
Accomodation and Food Services 106
1,146 $8,141
$13,431 Source: Pennsylvania Center for Workforce Information and Analysis, 2005
•
Health care and social assistance continues to play an increasingly important role in Armstrong County’s economy. The data for the above table, taken from a 2005 annual average, also shows the continuing role of manufacturing as a major economic force in the region. The following table provides an overview of occupations in Armstrong County:
Management, professional, and related occupations 6,709 22.1%
8,175 26.2%
Service occupations 5,029
16.6% 6,562
21.0% Sales and office occupations 6,640 21.9%
6,099 19.6%
Farming, fishing, and forestry occupations 392
1.3% 281
0.9% Construction, extraction, and maintenance occupations 3,896 12.9%
4,019 12.9%
Production, transportation, and material moving occupations 7,642 25.2%
6,048 19.4%
Totals: 30,308 100% 31,184 100% Occupation 2000 2007
Source: U.S. Census Bureau, American Community Survey Highlights from the above occupation tables include: •
Management, professional, and related occupations employed the largest number of persons, with 26.2% of the total by 2007. Service occupations employed the second largest number, comprising 21% of the total and experiencing the largest increase in the number of employees, increasing by 1,533 employees between 2000 and 2007. •
losing an estimated 1,594 jobs between 2000 and 2007. Page 26 The following table provides data on the number of establishments by employment-size class for industries within the 16201 zip code. Although the 16201 zip code is larger than the borough, it provides the latest information available on the number of businesses by employment class size. Table 5. Zip Code 16201, Number of Establishments by Employment-Size Class Industry '1-4' '5-9' '10-19' '20-49' '50-99' '100-249' '250-499' '500-999' 1000+ Total Mining
6 6 6 4 0 0 0 0 0 22 Utilities 2 0
1 0 0 0 0 0 4 Construction 16 6
0 0 0 0 0 0 26 Manufacturing 8 4
4 3 0 0 0 0 22 Wholesale trade 6 1
2 0 0 0 0 0 14 Retail trade 36 27
10 3 2 0 0 0 95 Transportation & warehousing 7 4
0 2 1 0 0 0 17 Information 1 4
2 0 0 0 0 0 10 Finance & insurance 17 10
3 0 0 0 0 0 30 Real estate & rental & leasing 9 0
0 0 0 0 0 0 11 Professional, scientific & technical services 34 5
1 1 0 0 0 0 47 Management of companies & enterprises 2 1
1 0 0 0 0 0 4 Administration, support, waste management, remediation services 6 2 2 0 0 0 0 0 0 10 Educational services 3 2
0 0 0 0 0 0 5 Health care and social assistance 30 38
17 0 3 0 1 0 98 Arts, entertainment & recreation 9 2
0 0 0 0 0 0 12 Accommodation & food services 14 6
9 2 1 0 0 0 42 Other services (except pub. admin.) 39 16
1 0 0 0 0 0 63 Total: 245 134 79 55 11 7 0 1 0 532 Source: U.S. C ensus Bureau, 2006 County Business Patterns Highlights from the above table include: •
•
Health care and social assistance was the industry category with the largest number of employers; retail trade was second. •
The largest number of establishments with 1-4 employees was in the “other services” category, which includes establishments that provide repair and maintenance services, personal services, such as hair cutting and laundry services, as well as religious, civic, and other volunteer groups. The retail trade industry was a close second. •
5-9 employment-size class. Kittanning Background Data on Employment, Industries and Occupations While manufacturing continues to play a key role in the local economy, the transition to a more service-based economy has resulted in employment gains in the educational, health and social service sectors. Manufacturing employs only 8.6% of the positions in Kittanning, and is now the sixth largest sector of the borough’s economy. The following table provides an overview on employment by industry for all industries in Kittanning Borough:
Page 27 Table 6. Kittanning Borough, Employees by Industry Industry Total Employees Percent of Industry Total Agriculture, forestry, mining 0 0.0
Construction 40 2.0 Manufacturing 175
8.6 Wholesale trade 35 1.7
Retail trade 215
10.5 Transportation, warehousing, utilities 40 2.0
Information 160
7.8 Finance, insurance, real estate 145 7.1
Professional, management, administrative services 235 11.5
Educational, health and social services 410
20.0 Entertainment, accommodations, food services 150
7.3 Other services (except public) 230 11.2
Public administration 210
10.3 Armed forces 0 0.0
Industry Total: 2,045 100.0 Sources: U. S. Census Bureau (2000)
•
The educational, health and social services industry has the largest percentage of employees at 20%, which mirrors Armstrong County at 19.5% (2000 U.S. Census). •
largest percentage of those employed, at 11.5%, or over twice the percentage compared to the county. •
maintenance services, personal services, such as hair cutting and laundry services, as well as religious, civic, and other volunteer groups was the third largest employment category. Page 28 The following table provides data on the number of employees by occupation, which supplies more detailed information than just employment by industry:
Management 115 5.6%
Farmers, farm managers 0 0.0% Business, financial operations 75 3.7% Computer, mathematical 20 1.0% Architecture, engineering 35 1.7% Life, physical, social science 10 0.5% Community, social service 155
7.6% Legal
40 2.0%
Education, training, library 50 2.4% Arts, design, entertainment, sports, media
20 1.0%
Healthcare practitioners, technicians 120
5.9% Healthcare support 50 2.4%
Protective service 45 2.2% Food preparation, serving related 125
6.1% Building, grounds cleaning, maintenance 50 2.4% Personal care, service 55 2.7% Sales, related 165
8.1% Office, administrative support 525 25.7%
Farming, fishing, forestry 0 0.0% Construction, excavation 40 2.0% Installation, maintenance, repairs 55 2.7% Production 165
8.1% Transportation, material moving 125 6.1%
Armed forces 0 0.0% Total Occupations 2,045
100% Sources: U. S. Census Bureau; The University of Wisconsin-Milwaukee Employment and Training Institute (2000)
• Almost 26% of those employed in Kittanning were employed in office and administrative support functions. Generally, these positions are lower paying positions with limited benefits. •
supplying 8.1% of the total employees in Kittanning. •
Community and social service occupations were third at 7.6%. •
Transportation and material moving were fourth at 6.1%. Page 29 Employee Earnings Table 8 Employee Earnings by Industry indicates the relatively low wages paid in the retail and personal care services industries. •
40% (165) of those employed in the educational, health and social services industry earned less than $20,000 annually, the largest of any industry in this income category. Conversely, the educational, health, and social services industry also had the largest number of employees earning more than $50,000, or 54 employees. •
services industry earned less than $20,000 annually. The industry also had the second largest number of employees earning more than $50,000, or 50 employees. •
was also the industry with the greatest number of persons earning less than $10,000. Other services had the second greatest number of persons earning less than $10,000.
0 0 0 0 0 0 0 0 Construction 10 0 24 4 0 0 0 40 Manufacturing 15 75 35 39 0 15 0 175 Wholesale trade 4 19 4 14 0 0 4 35 Retail trade 70 85 45 4 4 4 4 215 Transportation, warehou sing, utilities 0 4 30 8 4 0 0 40 In formation 20 24 45 50 15 4 4 Download 0.59 Mb. Do'stlaringiz bilan baham: 
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