It might seem unlikely, that nestled in the hills of Northeast Pennsylvania that an area so identified with coal mining is now a hub for technology-based businesses. Over a dozen technology firms and online retailers call Northeast Pennsylvania home, including
iGourmet.com,
Vintage Tub and Bath, and
BabyAge.com.
Upon closer examination, however, it’s not that far-fetched, especially considering it’s the same work ethic and industrious spirit that built communities with coal that are now creating successful dot.coms and e-commerce firms. A combination of visionary thinkers with strong ties to the community, a talented pool of job applicants and acute business savvy are clearly transforming the area.
“This area has always had a very successful entrepreneurial culture and about ten years ago, that culture decided to focus on new media,” says Chris Haran, CEO of the Northeastern Pennsylvania Technology Institute (www.nepati.com), a Scranton-based organization that provides an array of programs and services to both new and established technology firms. “Many of the top executives at these companies are ‘serial entrepreneurs’ who have started a number of successful business ventures.”
Two examples are Shavertown-based
Solid Cactus, an e-commerce marketing firm, and the Wilkes-Barre-based
Pepperjam Network, a full-service Internet marketing agency focusing on search engine optimization and affiliate marketing. Both companies have been established and led by forward-thinking executives with regional ties, and both were recently sold--Solid Cactus to Web.com, Pepperjam to King of Prussia-based
GSI Commerce--and their founders are currently developing other projects.
Another e-commerce company, the Hazleton-based TABcom (formerly Pets United, LLC), recently changed their name to better reflect their rapid growth. A holding company for a number of online pet product retailers, including
dog.com,
fish.com,
horse.com, and
ferret.com, has expanded their domain to include
garden.com,
solar.com, and
camping.com. The company operates 10 different brands/websites out of its Hazleton facility alone. "We hold about 5,000 different URL’s," Thomas Frenchu, TABcom’s CEO, says. “TABcom has almost become a factory for domains. We’re presenting customers with different ways to buy products. We offer solutions, products, and information on our sites; we’ve sort of become storage for more information. We’re now offering product reviews and have become a bit broader due to customers demanding more from the people they buy from.”
Frenchu says that the holding company seeks out small companies that have had difficulty getting started, and add them to their family of online retailers. "What we will continue to do is look for $5-$10 million companies and bring them into the TABcom fold, with call center, distribution and technology," he says. "There are small businesses out there who have a good concept and good approach, but when they go to grow or expand, the cost kind of exceeds their ability to invest or the investors willing to take the risk." The company recently purchased another company in December 2009 to shore up their garden division.
But as most CEOs would agree, it would be impossible to sustain such innovation and growth without a staff of committed, creative individuals to constantly stay in tune with current and future trends. The region has long been credited with having a workforce that is second-to-none; a trait no doubt instilled by generations of laborers who put in long shifts doing difficult work in mines and factories. The current employees of these e-commerce companies are no different. “The workforce has been great in the area,” says Kristen Padden, Director of Marketing for
AllAboutDance, a Forty Fort-based online retailer of dance apparel and accessories.
AllAboutDance’s owner, Alice Ellman, is a NEPA native who believes in giving back. Ellman has been a strong supporter of the local dance community for many years. AllAboutDance has streamlined their operation and maintains a brick-and-mortar store in the same location as their online business. “We moved everything about two years ago. Now if a customer comes into the store they can get everything that is found on our website. They would receive the same discounts as what would be found online, but there are no shipping charges. It’s great for the customers who come in,” Padden says. It also encourages folks to shop locally and support the local business economy.
But if there's one thing the region has in its favor, it's talent. Besides having a strong established workforce, the Scranton/Wilkes-Barre area is home to 14 higher education institutions with plenty of emerging talent in a variety of fields. “Not everyone is writing code, and there are broad skill sets needed,” Haran says. “These college kids are getting great opportunities to work in these types of companies, whether as interns or full-time employees.” Some recent graduates are surprised to find such lucrative employment in a region that has been viewed by many as a place that has been in a slow decline for decades.
Frenchu says that there should be more awareness of all of the high-paying, cutting-edge jobs in the region. "It’s been a struggle to fill some positions. The jobs are there, but people do not consider this area to be a technology hub," he said. "Though we have high tech jobs available, it has been a challenge to find the resources. The young talent has to constantly push themselves to be state of the art." In order for these companies to remain on the cutting edge, it’s important for them to be as flexible and accommodating as they can to recruit and retain first-class talent. "One reason why I have been able to stay here is that I offer a virtual work environment. I have people who work all over the country. In this economy, can’t wait for people to come knocking on your door," Frenchu says.
A new wave of entrepreneurs isn’t waiting, either, and there are plenty of resources available in the Northeast to assist them. But the industrial spirit that has weathered so many economic storms persists, and the new wave of entrepreneurship is quickly catching on. A number of technology incubators, such as the
Innovation Center at Wilkes-Barre, the
Scranton Enterprise Center, the
Greater Hazleton Business Innovation Center (CANBE), and the
Pottsville/Schuylkill Technology Incubator all provide office space and a variety of other programs and resources to startup tech companies. Pennsylvania’s government has embraced these new businesses and offer tax incentives that new entrepreneurs find very helpful.
“There are many startup funds available from the state, such as KIZ [Keystone Innovation Zone] funds and various tax credits,” Haran says. “These programs are a huge asset for startup companies.” On a local level, Padden said “There is a lot of support in the community. The Chambers and the different business organizations that provide resources for businesses in the area--we’re very pleased with what we’ve found on that front.”
Sara Hodon is a freelance writer who lives,
works, and plays in Northeast PA. Learn more about her writing trials and
triumphs on her blog. Send feedback here.To
receive Keystone Edge free every week, click here.
Photos:Ribbons are sewn to a pair of pointe shoes at AllAboutDance.com
Christopher Haran of The Northeast Pennsylvania Technology Institute.
Alice Ellman of AllAboutDance.
The brick and mortar AllAboutDance discount dance wear shop in Forty Fort, Luzerne County.
All Photographs by Aimee Dilger