6 —The Daily Collegian Thursday Oct. 30, 1980 I ai'i Employment in Slate College remains stable and is hardly subject to flucuations in the national economy because of the University. Blue collar or white collar; about 1 1,000 people from State College and the surrounding areas depend on the economic health of the University. r •» ‘ ■> f * < * fe V, ~\ T^F I,K, ‘ “ '" * 5 If 'W/W't 7‘>? JtffliH;' .>•:.*: ■ ' A V/> Ifr <#f - A -.<>. Director encourages economic expansion By CHRIS DELMASTRO and JEFF PORTNER Daily Collegian Staff Writers Centre County must look beyond the University for its economic base, a Cen tre Regional Planning Commission of ficial said. “Recognizing the predicted decline in student enrollment, Centre County must not depend on the University as the ma jor industry,” said Herb Kauhl, assis tant director of the commission. Kauhl said the computer software and design industry is the alternate economic base for the Centre Region. Two local industries who are examples of this base are HRB Singer which handles-numerous defense contracts for radar-related communications equip ment and Erie Tech which manufac tures ceramic capacitors. Roger J. Lusk, group general manager for the ceramics group at Erie Tech, said Erie Tech located in this area because of the favorable educational climate offered by the University. “A fair amount of our employees are University graduates. Also, our employees go on to further their educa tions at the University," Lusk said. Kauhl said the main disadvantage of the area for industry is the lack of energy and transportation sources. This disadvantage is less of a hindrance to a highly technical industry producing smaller components, he said. Lusk said the area has provided ade quate power and labor supplies for Erie Tech. He also said some employees were commuting from outside the Centre Region, and the company was promoting van pooling as a means of transportation for them. Lusk said Erie Tech is expanding its operations, and ground may be broken by the end of this year for additional pro duction space. “Our (production) lines will be grow ing between 10 and 15 percent, which will add about 35 to 50 new jobs,” Lusk said. Erie Tech now employs about 400 peo ple in its State College plant, which is the headquarters for its ceramics group. A Canadian-based multinational corpora tion, Erie Tech has three other domestic plants as well as subsidiaries in numerous foreign countries. * tv ' v »v. Besides the expansion of present in dustries, Kauhl said he sees new in dustries coming into the area. “The North American Refractory is setting up its headquarters here,” Kauhl saici. This company manufactures ceramic products and bricks. Kauhl said new industries bring in a new crop of technical people to the area. This causes a spillover effect that benefits area commerce by increasing the demand for services and for retail goods. 'Recognizing the predicted decline in student enrollment , Centre County must no t depend on the University as the major industry.' In addition to industry, the Centre Region can also look to an expansion of local business as a means of growth of the area’s economy. State College businesses received an added incentive to grow because of potential competition with the proposed Ferguson Mall. “Ferguson Mall is dead, but Nittany Mall is improving because of the pressure of a new mall, and the downtown was motivated into a healthy flux of growth,” Kauhl said. Kauhl said the Centre Region could make itself more attractive to outside in dustries by improving the area’s transportation system. He also said air commuter service is vital to linking State College to large cities around the country. Kauhl stressed the importance of com pleting the State College bypass. He said the Pennsylvainia Department of Transportation has reccommended its completion, but the future of the bypass is still uncertain. “Generally, the economy in the area is healthy, but there is always room for growth,” Kauhl said. ,*V ;**’”*• •' ;> V/ w, MV* *V Herb Kauhl University rated major employer By CHRIS DELMASTRO Daily Collegian Staff Writer The University as an employer ranked among the top 500 U.S. firms, according to Fortune Magazine. The May 1978 Fortune magazine figures introduced an economic study of the impact of the University on the Cen tre Region, done by Alice Warne, senior research assistant for College of Business Administration, and Ned Shill ing of the Center for Research. “A lot of people don’t see the Univer sity as being for them and their children,” Warne said. , “As a source of revenue for the local community, the University employs a large number of tax paying people, many of whom’ are also property owners,” a 1979 update of the study said. “It purchases large quantifies of goods and services from local vendors. Its several thousand employees and students support local businesses, and thousands of visitors to the University contribute to local economies and a por tion of the money spent by the University and by the students, staff and visitors.” Two studies were done by Warne to improve the relationship of the Universi- $: sr# */' .1 ~ > i ■ £) i ! - / * <, w ty with the local community. An update of the 1978 study was done in April 1979 with Ken Boras of the University Plann ing and Research group ofthe Office of Planning and Budget. “We were trying to provide informa tion to the Board of Trustees on the im pact of the University on the communi ty,” Boras said. The University also provides an in direct influence through alumni, faculty research and student volunteers, the study said. 'A lot of people don't see the University as being for them and their children.' —Alice Warne, senior research assistant for the College of Business Administration George Morgan, manager of Danks and member of the Chamber of Com merce, said the University students, faculty and staff were the dominant force in downtown sales. “A large part of the town and region would not be in existence without the University. It affects the total economy of the area,” Morgan said. The Bureau of Employment Security of the Pennsylvania Department of Labor and Industry keeps records of the University’s place in Centre County as an employer. The University provides a variety of blue collar and white collar, skilled and unskilled jobs. Employment at the University is much more stable than at a firm subject to seasonal flucuations. . “This steadiness has persisted through cyclical recessions and has been a significant contribution to the stability of the local economies in and around Penn State campuses,” the 1979 study said. w./ » rv ‘ /; : V K» ’«* ■ ; W I c. . .< The University remains Centre County’s largest employer. “In October of 1978, University Park reported to the Bureau of Employment A second aspect of the study dealt with and Security 14,046 employees in the salary of University employees. Univer- State College-Beliefonte labor-;market,” sity Park distributed sl39''million in the. 1979 Study said.i ; .-gross .wages and salaries, in 1978, accor “Perm Statehas'more’Julßime and 'ding to the later study. This is about 40 part-time .employees reported by percent of the total income in Centre Brockway Glass, Jonathan Logan, County. Kaiser Steel, McGraw-Hill, or Joseph E. The flow of this income affects the pur- Seagram and Sons , for example. It has chase of local goods and services, twice as many workers as Clorox, Pabst “Direct purchases for fiscal year 1978 Brewing, McLouth Steel, or the New amounted to $21,600,000,” the 1978 study York Times,” the 1978 study said. said. •ifior (ii ( And the University provides additional jobs beyond the confines of campus. . , >'< " ~ ' 1. ■> h * ’’■ Ranked among top 500 firms “Surely a part of the jobs in construc tion, transportation and public utilities, trade, /inanpe, insurance and real estate, services and government are providing services that would not be needed if the University and its students, visitors, etc., were not here,” the 1978 study said. Without the University, Centre County would have a different look. “It would be purely agriculture. There would be fewer college graduates here, since there is no other close source of education,” Warne said, Warne said a mutual benefit exists between the University and the surroun ding community. “I feel neither could exist alone,” Warne said. The borough supplies.goods and ser vices the University needs. Without this supply, the University would have to provide more dorms, food services and fire and police protection, Warne said. |n case of declining enrollment, the Centre County could feel the economic side effects. “The enrollment would have to decline quite a bit before it would affect jobs,” Boras said. Warne said the Centre County has become an attractive place to live. The area has an appeal to the retired with the availability of activities and events, to the salesman because of its central loca tion and to a number of University graduates. 'A large part of the town and region would not be in existence without the University..' But this figure is limited since it does not consider employee, student, visitor or indirect spending, the study said. Stu dent and employee spending wete' estimated in the 1978 study to bp' $182,400,000 for that year. Direct local spending attributed ;to the University becomes income for local residents. They in turn create indirect income as they spend this money locally;.' With adjusted figures, Boras also said indirect spending in 1977 amounted'fo' $71.4 million. Warne said one impact the study did not include was that of technology. She mentioned the University research hag brought more benefits to the community such as a closed sewer system recycl ing of water. Also, student experimenta tion with agriculture methods has helped local farmers. ' However, Warne said this works two ways since the University provides spillover costs as well, for example, pollution and the crowds from a football game. She also said the University also brings vandalism and drug-related pro blems to the area. - “Expenses are also attributable to the University. Penn State occupies large tracts of nontaxable land,” the study said. “It benefits, from locally tax supported municiple services such as fire and police protection; its staff and students use and benefits from many public services.” Warne said the study fairly sized up the impact of the University on the coni munity, and there were no plans forja further study. Boras said the study had some limita tions such as money and time and that the methodology had a somewhat restricted scope. He said, though, thatlie felt it did show the tremendous impacltf the University on the Centre County.,'^ Boras said he and Warne started Jby George Morgan, Danks manager defining a methodology for the study.'-' They consulted a book by John Caffrjfey and Herbert Issacs,“Estimating the Im r pact of a College or Um? Local Economy.” -• They dealt with indicators to decide oh the impact. “We looked at the primary effects of employment, salary, goods and services,” Boras said. The sources Warne and Boras were a 1973 study by Caffrey arid Issass for the University administration University files and the records of {hd Bureau of Employment Security^ If , -K, '/f tz>jf & ■ sv* Despite the University’s stabilizing} effect on the local economy, Centijei County may have to look toward lightj industry to expand its economic base*|! Also, Herb Kauhl, assistant directota: of Centre Regional Planning Com}?; mission, said he expects the e»J; pansion of present businesses such ;tsj the stores at the Nittany Mall will adfij! to the area’s economic growth. --P i :• ■ ► 4 . S S. . : f# ; 'ir t •'»? K*' < V ; $ i /%•' "P ■ \ V.s£ ■**«6j* }’* ' Area farms struggle with rising operating costs •By JEFF PORTNER Daily Collegian Staff Writer . Farm population in the Centre County 'region is decreasing faster than in other ‘areas of the country,, a county extension director said. According to the latest census, the number of productive farms in central Pennsylvania has increased, but Russel Seward, county extension director, said these are in regions outside of Centre County. Rising operating costs because of in flation and higher fuel prices were blamsed by Seward as the most persis tent problems facing farmers in the Cen tre Region. These increased expenses narrow the profit margin for farmers and make it harder for them keep their farms, he said. “I think we’ve seen a few cases when an individual has had a tough time mak ing it.. .but usually they’ll sell their livestock and equipment to reduce their debt,” he said, and thereby save their farms. , Seward works as a liaison between the University and the surrounding farm communities. The office in which he works has branches located in every county of the state. The main function of his office is to provide informal educa tional programs for farmers throughout Pennsylvania. “We take research from the Universi- y\l'' * a ; Tlu* number of farms are decreasing in Centre County despite an increase in the farm population nationwide. Kussel Seward, county extension director, says the higher cost of fuel and inflation are hurting fanners' profits. ‘V , » K ,“'V. ~ > fl « <'; -v, nr> *' * v * *,, • v ivt?E,;~TV '-"i ty and adapt it to local conditions,”he said. Some of the research conducted by the University that has been directly benefited area farmers is a soil testing program developed at the University. “We have 1,500 soil samples tested per year; 200 different farms per year run soil tests through University labs,” - Seward said. The University itself also owns quite a significant area of farmland in the Cen tre Region. Seward said the areas oc cupied by the Pine Springs Research and Horticultural Research farms amount to three or four thousand acres. One program recently developed at the University is being administered by the 4-H organization. Described by Seward as “one of the most modern f types of programs in the U:S.”, it analyzes the hay that is fed to beef cattle from the silage and determines its quality. The Extension Service is also working with the University to provide some private farms in the Cente County area with an experimental type of oat seed, Seward said. The Horticulture and Pine Springs research facilities operated by the University also sponsor an event called “Agricultural Progress Days” for three days each August. “They estimated 45,000 people came 4 ’ „ * f } ' this year,” Seward said. Numerous displays and demonstrations-of interest to the farmer are the main attractions of the event. The displays include different varieties of crops and herbicides, and newly developed soil tillage methods, he said. “A lot of the different equipment com panies come to demonstrate their equp ment; it’s a live demonstation,” he said. “People actually see the machines working on the land,” he said. The College of Agriculture also has a hand in the program’s organization. “It’s a joint effort,” Seward said. Some area farmers praise the Univer sity’s involvement in agricultural research. Paul Harner, owner of Harner’s Fruit farm, while having no formal connection with the University or the County Exten sion Office, does receive the “fruits” of the University’s labors. “The University as a whole from the very beginning has helped to aid and abet farming in this area,” he said. One of the major areas in which Harner has gotten help from the Univer sity is the constant introduction of technical methods in today’s farming. “As farming has become more technical, the University has gone into researching new (farming) techniques,” he said. ' 4 <. Because the farmers follow the University’s advice on such things as soil treatment, pesticide use and harvesting techniques, “I think we have some of the best farming around here in the state,” Harner said. “The agricultural goods from Penn sylvania will surpass steel in value of the products, and the technology (behind) it has come from the University. “I think for the money invested in Penn State, it cannot be equalled in return (of investment) for our tax dollars,” he said. Sheldon Corl, a dairy farmer from State College, generally agrees with Harner’s opinions. “I guess the research programs have helped us fertilization, lime, new Imagine yo designing system tha locate any in the ocea Imagine your building the s that will safeguard the United S' types of seed”, he said. As a dairy farmer, Corl has had an easier time than most weathering the most recent recession. “I would say that the last couple of years have been lucrative for the dairy farmer. The past few years grain and feed prices have been on the rise, and I think milk prices will also rise,”he said. Inflation has nonetheless taken its toll on Corl and other dairy farmers. Corl said a relatively dry summer with a, period of drought was responsible for the recent rise in grain prices. “We’ve had a dry summer, and I don’t think the reserves (of corn) are available just yet,” he said. “The purchases of farm equipment V-*'' Imagine your t creating a sinv that duplicates in 3-D any situ a pilot might experience. Imagine yourself at Hughes ... taking advantage of Hughes’ continuing education program one of the finest in the country. See your placement office for an appointment. We’ll be on campus Nov. 11 At Hughes, your future is limited only by your imagination. HUGHES AIRCRAFT COMPANY Proof ol U.S. Citizenship Required Equal Opportunity Employer Hughes Aircraft Company, P.O. Box 90515, Los Angeles, CA 90009. The Daily Collegian Thursday Oct. 30, 1980 —7 and other machines are hurting us due to the high cost involved. It’s getting harder to replace things,” he said. “I think one of the biggest things out in the University is its (animal) diagnostic lab. Now it’s a lot of money, though,” he said. In the past, the University ran the lab, whose job it is to diagnose the various diseases afflicting farm livestock, free of charge. But Corl said because of fun ding problems in recent years, the University has resorted to extremely ex pensive fees for the services of the diagnostic lab, putting its benefits out of reach of area farmers. ‘^h 1 Y"' v -v/B / +■% fV' *... '-y working on innovations that could change the world enjoying the Southern California lifestyle. HUGHES
Significant historical Pennsylvania newspapers