Lancaster-York : Innovation & Job News

A York County manufacturing firm now owns its building and is hoping to manufacture further growth.

Doucette Industries, which makes heat exchangers and hose assemblies for refrigeration systems and other industrial applications, employs about 30 people at its facility outside the city of York. Doucette's chief financial officer, Stan Falenski, explains that the company was leasing its 27,000-square foot building. When the company bought a division of electrical-products company RG Industries in 2006, the agreement included an option for Doucette to buy the building.

The firm is now purchasing the building with the help of a $660,000 loan through the Pennsylvania Industrial Development Authority. The total cost of the project is estimated at $1.3 million.

Most of Doucette's work is for commercial and industrial customers, Falenski says, but the company is planning to expand into the residential market. Three years ago it bought Trevor-Martin Corp., a Florida company that specialized in heat-recovery units for homes. Doucette could potentially hire more workers if sales increase, Falenski says.

Source: Stan Falenski, Doucette Industries
Writer: Rebecca VanderMeulen

Would you be surprised to learn that less than 1 percent of all businesses in Pennsylvania created almost every new job throughout the commonwealth?

That's exactly the impact that about 2,300 high-growth companies had on the state, according to research by economic development consultant Dr. Gary Kunkle. His examination of Pennsylvania's economy found that these businesses -- affectionately referred to as "higros" -- generated almost 60,000 new jobs between 2006 and 2009. Out of 757,000 businesses in Pennsylvania, 0.3 percent were considered higros. In about a month, there will be a new list of higros.

"These firms are in every single industry within the state," says Kunkle, president of North Carolina consulting company Outlier LLC. "They're almost randomly geographically distributed."

Focusing on nurturing these businesses and helping them expand represents a new approach to economic development, His research shows that 97 percent of new jobs come from businesses expanding, rather than companies opening or relocating. The most successful businesses hire new workers gradually as they grow.

"It's better to hire 10 people 10 times than to hire 100 people once," Kunkle says.

The Allegheny Conference on Community Development plans to put this research to work to predict which businesses in a 10-county region of southwestern Pennsylvania are most likely to succeed, and how to best ensure their success. Details are still being worked out.

Also, the Team Pennsylvania Foundation is talking with the state Department of Community and Economic Development about how to use Kunkle's findings.

Sources: Dr. Gary Kunkle, Outlier LLC; Matt Zieger, Team Pennsylvania Foundation
Writer: Rebecca VanderMeulen

A year ago FlyCast, the maker of an app that allows people to listen to the radio for free on smart phones, had figured out how to make their app work on Android and BlackBerry devices along with iPhones. And they realized a lot of developers would find this ability useful.

This epiphany led to FlyCast's rebranding as appMobi, which makes its technology available to the public. Thanks to the Lancaster firm, developers can write their apps once and have it converted for use on Apple and Android devices. The company plans to roll out BlackBerry and Windows phones soon, appMobi spokesman Roy Smith says.

A group of angel investors, who don't want to be identified, is contributing $6 million to fund appMobi's expansion. The company employs about a dozen engineers now and is hoping to hire about five more so the staff can keep up with new mobile platforms and improved versions of mobile platforms that already exist. Other improvements are in the works, including technology that would make it easier for shoppers to make purchases using their smart phones.

"We're just scratching the surface of what can be done with apps," Smith says.

Additionally, appMobi is increasing its efforts in online marketing, including its presence on Facebook and YouTube.

Source: Roy Smith, appMobi
Writer: Rebecca VanderMeulen

Bedford County will soon have new office space for startups and expanding businesses.

The Bedford County Development Association is working an addition to the 24,000-square foot Bedford County Business Center it owns outside the town of Bedford in southwestern Pennsylvania. The nearly 15,000-square foot addition is set to be finished in the summer of 2012.

The existing business center, which opened in 2004, is a home for new businesses and those in need of a new space. About 21,000 square feet are occupied now. Companies leasing space in the center include printing firm Stel-Tek Graphics and the sales and marketing division of Bedford Reinforced Plastics.

Construction on the additional facility is expected to start this summer and take about a year, says Bette Slayton, president of the Bedford County Development Association. Its cost is estimated at $1.1 million, of which $650,000 will be covered by a federal grant. The Pennsylvania Industrial Development Authority is lending another $252,000.

Slayton says the additional space will be open to entrepreneurs, startup businesses, companies looking for a place to expand, and people who work out of their houses now but want an office away from home.

Source: Bette Slayton, Bedford County Development Association
Writer: Rebecca VanderMeulen

Advanced Solar Industries isn't your typical solar panel installer.

The New Holland, Lancaster County-based firm has an employee whose job is to maintain connections with customers after their energy systems have been completed. It invites customers to take part in company volunteer projects, and customers have welcomed workers into their homes when solar installations were long finished. Soon, Advanced Solar plans to deliver lunch to competitors, an overture aimed at uniting solar installers so they can work together as an industry.

CEO Josh Mitten says his goal for 2012 is to be recognized as one of the best businesses to work for in Pennsylvania.

Part of Advanced Solar's distinction lies in its founding in 1995 by Elam Beiler, an Amish man who wanted to use the sun's energy to keep his buggy's headlights on.

Beiler has since moved to Indiana. Before he left, he built a company that already had plenty of experience installing solar panels by the time solar energy systems started becoming popular a few years ago. And Advanced Solar's own offices are just now being connected to the grid, a necessity for a business with 33 employees.

The company installed about 140 solar panel systems in 2010 and plans to expand beyond Pennsylvania this year with projects in Maryland and North Carolina. And this fall it will have a charity bike ride to raise money for The Collaboratory, a Messiah College organization that plans to install solar panels at medical facilities in developing nations.

"Where our business is does not limit where our impact can grow," Mitten says.

Source: Josh Mitten, Advanced Solar Industries
Writer: Rebecca VanderMeulen

The state Department of Conservation and Natural Resources has a wealth of information about Pennsylvania's trail system, from the trails' GPS coordinates to the location of boat docks on waterways. And these tidbits would be very useful in the hands – or smartphones – of hikers, bikers and snowmobilers, the department thought.

Sounds like a recipe for a smartphone application.

So DCNR asked the Harrisburg University of Science and Technology for help developing an app. From there came the idea for a contest to see who could develop the best one.

"We know there are a lot of bright developers out there, and any app we could have come up with, they probably would have come up with something better," says Charles Palmer, executive director of the
university's Center for Advanced Entertainment and Learning Technologies.

The contest will be open to developers in Pennsylvania and students at all of the state's colleges. It starts Jan. 18 and all entries have to be in by March 1. The winner will get an iPad.

Palmer foresees all sorts of possibilities for smartphone apps. Maybe users could rate different trails and make comments on them for others to see. Or perhaps an app could point out streams that are prone to flooding.

"We really don't know what they will do," he says.

Source: Charles Palmer, Harrisburg University of Science and Technology
Writer: Rebecca VanderMeulen

Len Rieser says the state of public schools should matter to everyone, because every child has the potential to make the world a better place.

"It sounds cliche, but any child could be the person who comes up with the cure to a disease, or a new environmental approach, or a way to solve conflict and war," says Rieser, executive director of the Education Law Center, which has offices in Philadelphia and Pittsburgh. "I just see it as human potential."

That attitude explains why Rieser, who has been with the center since 1982, was chosen for the Philadelphia Bar Association's Andrew Hamilton Award. Each year the award goes to a public-interest attorney or someone who provides legal services to people who can't afford them.

The Education Law Center started in 1975 to help children facing legal hurdles to access public schools. The organization has evolved to also work as an advocate for improving public education. It was one force behind a new statewide funding formula adopted in 2008 to target state money toward the neediest school districts.

In the future, Rieser says the center plans to continue collaborating with other public-education advocates. "I think we want to keep our eye on what's good for kids and families," he says. "We basically believe that in every political climate, it's possible to keep kids at the forefront of the discussion."

Source: Len Rieser, Education Law Center
Writer: Rebecca VanderMeulen

A cutting-edge medical research company outside of York expanded its offices earlier this year and is already running out of space.

Aptagen specializes in aptamers, which are DNA- and RNA-based substances that bind with specific molecules. The company develops aptamers for research, medicine and industrial customers. They are designed for tasks like diagnosing disease and delivering drugs. "There's really no other companies that do what we do," says Aptagen CFO and project coordinator Andrew Sprich.

In June the company added more than 600 square feet, including labs and offices, to its 1,000-square foot office in Jacobus, York County. It employs about 15 people, including interns. Aptagen continues to expand and plans to hire two or three more scientists. As a result, the company plans to add more physical space next year, either in its current building or at a nearby location. The timing of this move will partially depend on the increasing pace of business Aptagen is receiving.

And there's no sign that business will slow down. According to Massachusetts firm BCC Research, the worldwide market for aptamers was valued at $10 million last year and is expected to skyrocket to $1.9 billion by 2014.

Source: Andrew Sprich, Aptagen
Writer: Rebecca VanderMeulen

Want to install a wind turbine at a Pennsylvania school? Penn State University would like to help.

The Penn State Wind Application Center is one participant in the Wind for Schools Project, a U.S. Department of Energy initiative that's operating in 11 states. Through the program, elementary, middle and high schools can have a small (2.4 kilowatts, to be exact) wind turbine installed to produce electricity and introduce wind power in the classroom.

"It's really not intended to take a huge chunk out of the school's energy costs," says Susan Stewart of Penn State, who is directing the project. "The educational component is really the key."

As part of Wind for Schools, teachers at participating schools will receive training on how to integrate wind power into their lesson plans. One aim of the national project is to develop kids' interest in working in the wind-power industry as adults.

Stewart says each wind turbine will cost around $20,000. Each school will be asked to cover part of the cost and Penn State will help find grants and donations for the rest. Penn State hopes to have between three and five turbines installed each year through the program.

Wind for Schools applications should be available soon. The State College Area School District is already interested in building a turbine at an elementary school under construction.

Source: Susan Stewart, Penn State Wind Application Center
Writer: Rebecca VanderMeulen

A lot of people dream of starting a business to make and sell food, but a barrier stands in their way: Commercial cooking equipment costs thousands of dollars.

But next year, entrepreneurial cooks in the York area can look forward to a business incubator just for them. YorKitchen, which is being built in downtown York's Central Market as part of a wider downtown revitalization effort, will be available for rent to aspiring business owners and companies that need the space to expand or test new products. The Entrepreneurial Support Alliance, a group of business development experts from nearby colleges and business professionals, will help entrepreneurs build their businesses.

"This is a really easy way to take your grandmother's carrot cake recipe and make a living from it," says Aeman Bashir, coordinator of the York Keystone Innovation Zone and a key organizer on the project. She expects YorKitchen to open in January.

Bashir says the incubator grew out of a desire to give the local agriculture sector a way to develop new products. And organizers have been reaching out to farmers, like apple growers next door in Adams County. But word has spread without much effort from those behind YorKitchen.

"We've had a huge response even before we've proactively marketed it," Bashir says.

Besides business-development services, plans call for the incubator to host classes on topics like nutrition, ethnic cooking and eating well on a tight budget.

Source: Aeman Bashir, York Keystone Innovation Zone
Writer: Rebecca VanderMeulen

Volvo Construction Equipment recently expanded its Shippensburg manufacturing plant, and the company is calling back employees to work there.

When Volvo bought a division of Ingersoll Rand in 2007, the 300,000-square foot Ingersoll Rand facility in Shippensburg came with the deal. And in 2008, Volvo shut down its factory in Goderich, Ontario, moving most of its operations to Shippensburg. Volvo then began a $30 million project to add 200,000 square feet to the Pennsylvania facility, which was built in 1974.

The Shippensburg facility makes equipment like asphalt rollers, graders and milling machines for North American customers. It employed about 830 workers in October 2008, before Volvo cut a quarter of its employees around the world. But demand for road construction equipment is rising again, company spokeswoman Beatrice Cardon said. Laid-off workers are being asked to return, and now about 650 people work at the Shippensburg plant.

"We hope to build up our employee base because the orders are coming back," Cardon said.

The facility has also received Leadership in Energy and Environmental Design certification from the U.S. Green Building Council. The plant's features include skylights, low-flow plumbing fixtures, recycled building materials, and outdoor plants that don't need to be watered.

Source: Beatrice Cardon, Volvo Construction Equipment
Writer: Rebecca VanderMeulen

Pennsylvania is a rich source of energy alternatives like wind and natural gas. And a report from a prominent conservation group cautions that those who wish to take advantage of these resources do so in a way that minimizes harm to the forests, wildlife and waterways that are also abundant across the state.

"An intact and healthy natural habitat represents dollar signs, too, in terms of tourism and recreation," says Nels Johnson, deputy director of Pennsylvania's chapter of The Nature Conservancy.

His group completed the report in partnership with Audubon Pennsylvania and the Western Pennsylvania Conservancy. It predicts the probable impact of energy development throughout the state over the next two decades, focusing on wind turbines, gas and electric transmission lines, wood-based biomass and gas-drilling wells in the Marcellus Shale formation that underlies much of Pennsylvania.

Overall, it estimates up to 60,000 natural-gas wells statewide by 2030, and perhaps more than 3,000 wind turbines. The report also looked at how this development would impact species like the brook trout and black-throated blue warbler.

Johnson says the conservationists' intent isn't to stop energy development or say one source is better than another. Their hope is that government and business work conservation measures into their plans for using the energy.

For example, Johnson notes that one natural gas well pad takes up about three acres, with another six acres or so for pipes, roads and other uses. Putting as many wells as possible on each well pad reduces the amount of land dedicated to drilling. From a conservation standpoint it's best to leave as much contiguous wooded land as possible because many species best thrive in the interiors of a forest.

Source: Nels Johnson, The Nature Conservancy
Writer: Rebecca VanderMeulen

Wondering where you can get online? Now you can go to a single website and find where broadband is available throughout Pennsylvania.

Using $7.3 million in federal stimulus money, the state recently launched an interactive map that shows where the Internet is accessible through cable, wireless networks, fiber-optic and telephone lines. Viewers can zoom in on a certain location or search for Internet service providers serving a particular street address. The map stems from a state law passed in 2004, requiring broadband access statewide by 2015.

Sue Suleski, director of broadband initiatives at the state Department of Community and Economic Development, says the main point of the map is to show where broadband service is lacking in Pennsylvania. Most of the need is in northern pockets of the state. Then it will be easier to target government funding for broadband expansion. (The state has already received $28.8 million in stimulus dollars to improve broadband north of Interstate 80). Suleski says Internet service providers are also excited to see the map so they'll have a better idea of where to build up their customer base.

"Broadband is certainly a powerful economic driver," she says, adding that areas without broadband access will be at a disadvantage in an increasingly technologically-driven economy.

Suleski says the map will be updated every six months, as some Internet service providers didn't provide information for the project. The plan is to include Pennsylvania's broadband map as part of a similar national map expected to debut in February.

Source: Sue Suleski, Department of Community and Economic Development
Writer: Rebecca VanderMeulen

Companies across Pennsylvania are working to implement environmentally responsible business practices, but students in the Harrisburg area are taking on that task while they're still in high school.

For the second year in a row, the Harrisburg Regional Chamber & CREDC is hosting a contest to see which local high school team presents the best green business plan. The Chamber Millennials' Green Business Challenge will take place Nov. 18 as part of the chamber's annual business expo at the Pennsylvania Farm Show Complex & Expo Center.

In preparation for the competition, teams of between three and five students from Harrisburg-area high schools have been developing environmentally friendly business plans for companies that already exist or for businesses invented for the challenge. Teams will be judged on how many jobs would be created from the business plans and which would produce the largest, fastest return on investment.

A team from Hershey High School won last year's competition. Event Chairwoman Chris Eshelman says that during the winning team's presentation last year, a student wore a skirt constructed with fabric made from plastic shopping bags, which was the subject of the team's business plan. "We were just amazed at the creativity of these high school students," she says.

Source: Chris Eshelman, Harrisburg Regional Chamber & CREDC
Writer: Rebecca VanderMeulen

Bioscience firms all over the Keystone State have been awarded grants and tax credits thanks to a federal program aimed at improving medicine and creating jobs.

The Qualifying Therapeutic Discovery Project program made grants and tax credits available for projects expected to reduce health-care costs, advance the quest to cure cancer or result in new treatments for disease. Also taken into account was each project's potential to create or retain high-paying American jobs.

A total of 158 Pennsylvania companies received grants totaling $48.1 million, and four companies got tax credits totaling $1.2 million. According to statewide industry group Pennsylvania Bio, grants went to businesses that are not yet profitable and tax credits were given to companies that have turned a profit.

Recipients are developing treatments for ailments like heart failure, ovarian cancer, diabetes, Parkinson's disease and lymphoma, to name a few.

“The impact of this program on Pennsylvania’s bioscience industry cannot be overstated," says Pennsylvania Bio President Christopher Molineaux in a statement. "The funding it provides will have positive effects on job sustainability, global competitiveness, and on advancing life-saving therapies and cures for patients.”  

Source: Amber van Niekerk, Pennsylvania Bio
Writer: Rebecca VanderMeulen