Preread Material

1
Initiative for a Competitive Greater Reading
Pre-read Material Strategy Board Meeting March 5,
2004
2
Objectives of March 5th Meeting

• Gain a common understanding of the economic
  landscape of Berks County and its context to
  Southeast Pennsylvania
• Examine Berks County economic base and its
  relationship with the surrounding regions
• Obtain preliminary insights into Berks County
  economic assets
• Begin discussions on defining the economic vision
  for Greater Reading
• Select 10 clusters to profile in more detail to
  inform final selection of targeted clusters at
  the next meeting

3
Agenda
Initiative for a Competitive Greater Reading

• I. Review Key Highlights from Last Meeting
• II. Berks County in the Context of Southeast
  Pennsylvania
• Snapshot of key economic indicators
• Demographic trends
• Review of past reports
• III. Economic Structure and Berks County
  Strengths
• Snapshot of economic base
• Berks County economic position nationally and
  regionally
• Berks County competitive assets compared to the
  region
• IV. Next Steps
• Identify 10 clusters to conduct more detailed
  analysis
• Next Strategy Board meeting in May

4
Initiative for a Competitive Greater
ReadingReview Key Highlights from Last Meeting

• Project Description and Approach
• Objective is to enhance the capacity of the
  business environment to retain and generate
  sustainable jobs, income and wealth-creating
  opportunities
• This is not a research project it is a strategic
  process with action as the outcome
• Methodology grounded in fact based information to
  identify and leverage the competitive advantages
  of Greater Reading
• Not meant to replace existing social initiatives,
  but complement by improving the economic base of
  Greater Reading to increase economic
  opportunities for low-income residents
• Initial Demographic Overview
• Berks county population continues to grow
  outpacing its surrounding counties
• Berks county suffers from a powerful income and
  racial divide
• Unemployment and poverty are concentrated in the
  city of Reading

5
Agenda
Initiative for a Competitive Greater Reading

• I. Review Key Highlights from Last Meeting
• II. Berks County in the Context of Southeast
  Pennsylvania
• Snapshot of key economic indicators
• Demographic trends
• Review of past reports
• III. Economic Structure and Berks County
  Strengths
• Snapshot of economic base
• Berks County economic position nationally and
  regionally
• Berks County competitive assets compared to the
  region
• IV. Next Steps
• Identify 10 clusters to conduct more detailed
  analysis
• Next Strategy Board meeting in May

6
Berks and Surrounding Counties DemographicsSize
of Berks County
The Reading MSA (Berks County) is the 110th
largest metro area out of 922 in the nation and
is located in close proximity to the first,
fourth and sixth largest metro areas
Note Metropolitan Statistical Area ranking is
out of a total 922. Reading MSA is defined as the
entire Berks County. The Philadelphia CMSA
includes the counties of Bucks, Chester,
Delaware, Montgomery, and Philadelphia in
PA Source 2000 US Census
7
Berks and Surrounding CountiesComparison of Key
Economic Indicators
National
Reading City
Berks County
Outer Counties
Inner Suburbs
23.5 11.1 13.2 80.0 30.6 12.4 41,994 5.8
1.1 66.2

• Population
• Age 18-34
• Foreign Born
• Growth (90-00)
• Workforce
• H.S. Diploma
• College Grad.
• Economic
• Poverty
• MHI
• Unemployment
• Job Growth
• Other
• Home Ownership

26.7 10.5 3.6 60.0 11.8 26.1 26,698 9.6
-0.1 51.0
21.3 4.3 11.0 77.6 24.0 9.4 44,714 6.5
0.4 74.0
20.9 3.9 7.6 78.9 25.1 8.3 42,982 3.6 1
.0 71.9
19.9 6.3 8.8 88.8 42.1 5.4 58,815 4.6 1
.1 74.6
Note Outer Counties include Lancaster,
Lebanon, Lehigh, Northampton, and Schuylkill.
Inner Suburbs include Bucks, Chester, Delaware,
and Montgomery. Sources Unless otherwise noted,
the above data is from the 2000 Census. 2002
Annual Average, Local Area Unemployment
Statistics Program Bureau of Labor Statistics.
1997-2003 Bureau of Labor Statistics US Census
Bureau.
8
Berks County DemographicsSummary
Berks County demographic trends can be leveraged
to shape its economic future. The key trends
identified thus far are

• Berks County population growth is fueling sprawl.
  This is primarily driven by two factors
• Migration from the Philadelphia Metro area to the
  eastern towns in Berks County
• Migration from the city of Reading to outer towns
  around Reading
• The sprawl is not being supported by job growth
  which is increasing the commuting to other
  counties, most notably Montgomery County
• The people moving into Berks are younger and more
  have some college, but more also have less than a
  HS diploma
• Berks County is becoming more segregated as the
  Hispanic population of Reading grows
• Hispanics are moving into the City of Reading,
  while whites are moving out of Reading into the
  townships around the city

9
Berks County DemographicsPopulation Growth
Berks County population growth has exceeded that
of the state and the surrounding areas, but has
not kept pace with national population growth
CAGR
Indexed Population Growth Estimates (1990-2002)
United States
1.3
1.1
Berks County
0.7
Outer Counties
0.3
0.3
Pennsylvania
Inner Counties
Source Census Bureau Estimates Note There is a
jump in population in 2000 as estimates were
reconciled with actual Census Data. Inner
Counties include Bucks, Chester, Delaware,
Montgomery, and Philadelphia. Outer Counties
includes Lancaster, Lebanon, Lehigh,
Northampton, and Schuyllkill
10
Berks County DemographicsPopulation Growth and
Sprawl
The highest growth towns in Berks county are
outside the immediate vicinity of Reading.
Population growth is reducing the rural character
of these towns
High Growth Towns
MAIDENCREEK
MUHLENBERG
LOWER HEIDELBERG
EXETER
AMITY
SPRING
Source 2000 Census, 1990 Census, Berks County
Planning Commission
11
Berks County DemographicsUrbanization and
Population Growth
Growth in urbans area has vastly outstripped
population growth in the last half century.
While the situation in Reading is no worse than
the rest of the Pennsylvania, this is a
significant problem statewide
Overall Urban Land and Population Growth
(1950-2000)
Ratio of Land Growth to Population Growth
61
61
71
31
61
2.51
Source David Rusk, A Study of Fragmented Local
Governance in Pennsylvania, Its Scope,
Consequences, and Reforms
12
Berks and Surrounding Counties Demographics
Population Growth and Job Growth
While for most of the 1990s it appeared that job
growth in Berks County was exceeding population
growth, since the downturn in the economy and the
readjustment of population estimates, the reverse
is actually the case. Economic cycles also
contribute to this change
Comparison of Job Growth and Population Growth
(1993-2002)
Source Census Bureau Estimates, PA Dept of
Labor Note There is a jump in population in
2000 as estimates were reconciled with actual
Census Data.
13
Berks County DemographicsMigration

• There are two large flows of migrants to Berks
  County
• Residents of the Philadelphia Metro area moving
  out to the Eastern towns in Berks County
• Resident the New York Metro area moving to the
  city of Reading
• The migration from New York is predominately
  Hispanic
• Despite the large flows of people into the city
  of Reading the population has not grown
  significantly because current residents of
  Reading are moving to the towns around Reading
• The positive net migration flow into Berks County
  is younger and less educated than the population
  as a whole
• While this is keeping the area from aging at the
  same rate of the rest of the State, it is causing
  Reading to fall further behind national average
  education levels
• While migration is changing the demographic
  portrait of Berks County, the percent of Berks
  County residents who moved to the county in the
  last five years is still in the lowest quartile
  of migration for US counties and on par with
  local and state averages

14
Berks County DemographicsSources of Migrants
Reading City attracts migrants from New York
City, while migrants to the Eastern Townships are
more likely to be from the Philadelphia area
Sources of Migrants to Berks County (1995-2000)
Percent of Migrants to Area
Total Migrants
9,600
13,414
7,083
14,651
Note Reading Area includes towns around Reading
but not Reading, Eastern Townships includes towns
and boroughs along border with Chester and
Montgomery Counties. See Appendix for
definitions. Source 2000 US Census
15
Berks County DemographicsCharacteristics of
Migrants
While the City of Reading is attracting large
numbers of Hispanic migrants, white migrants into
the city is comparable
Ethnic / Racial Mix of external Migrants to Berks
County (1995-2000) by destination

• The city of Reading external migration is 44
  Hispanic, 36 White and 20 Other
• 68 of migrants from the New York Metro area to
  the City of Reading are Hispanic
• 39 of Hispanic migrants to Berks County are from
  New York, 29 are from other places (largest
  sources include Florida, Massachusetts, and
  California)
• 87 of migrants from the Philadelphia metro area
  to Berks county are white

Note See Appendix for definitions of Greater
Reading, Eastern Townships, and Rest of
County Source 2000 US Census
16
Berks County DemographicsCharacteristics of
Internal Migration Flows
The vast majority of the people moving out of
Reading City to other parts of Berks County are
white. These people are moving to the towns
around Reading
Ethnic / Racial mix of Berks County residents who
moved to different parts of Berks County
(1995-2000) by town of residence in 1995

• 76 of people moving from Reading city to other
  parts of Berks County settled in the towns around
  Reading
• Only 8 of Berks County residents who moved
  within Berks, moved into the City of Reading

Note Definitions of Categories included in the
Appendix Source 2000 US Census
17
Berks County DemographicsCharacteristics of
Migrants
More people are moving in than out of the county.
The net migration into Berks County is younger
and more have some college, but more have less
than a HS education
Educational Attainment of Berks County Migrants
(1995-2000)
Age of Berks County Migrants (1995-2000)
Note Educational Attainment data is for people
25 only. Source 1990 Census, 2000 Census
18
Berks County DemographicsChanging Demographics
of Reading City
Migration in the 1990s caused Reading to become
more Hispanic and younger. The education level
has improved, more have some college, but net
results are still behind national levels
City of Reading Demographic Change 1990-2000
Hispanic
Age
Education
65
50-64
Hispanic
35-49
Bachelors or more
Some College
19-34
High School Diploma
Non-Hispanic
Less than High School
lt19
United States Demographic Change 1990-2000
65
Hispanic
50-64
Bachelors or more
35-49
Some College
19-34
High School Diploma
Non-Hispanic
Less than High School
lt19
Note Education is for people 25 only. Source
1990 Census, 2000 Census
19
Berks County DemographicsComparison to Regional
and National Migration Levels
While migration to Berks is changing the make-up
of the county the relative levels of in-migration
and out-migration are lower than national
averages and consistent with surrounding counties
Percent of 2000 Area Residents over the Age of 5
who did not live in the area in 1995

• Migrants in the last five years comprised 15 of
  Berks county population over the age of 5. This
  is less than the national average of 21 and
  ranks Berks County 2601 out of 3107 counties
  nationwide (84th percentile)
• Compared to other Metropolitan Areas the Reading
  MSA ranks 196 out of 297 metro areas nationwide

Source 2000 Census Note Inner Counties
include Bucks, Chester, Delaware, and
Montgomery. Outer Counties include Lancaster,
Lebanon, Lehigh, Northampton, and Schuylkill
20
Berks and Surrounding Counties Demographics
Commuting

• The migration from the Philadelphia Metropolitan
  area is leading to an increasing numbers of
  people commuting from Berks County to Montgomery
  County and the rest of the Philadelphia Metro
  area
• Commuting out of Berks County to jobs in
  Philadelphia is predominately from towns on the
  eastern edge of the county
• Residents of Reading and the towns around Reading
  overwhelmingly work in the area and are not
  commuting to jobs in the Philadelphia area or
  jobs in other parts of Berks County
• On average Berks County residents are still more
  likely to work in Berks County than residents of
  surrounding counties are likely to work in their
  home county, or than the national average for
  commuting out of the county
• The exception to this is the Eastern Townships of
  Berks where a majority of people work in
  Montgomery or Chester counties
• While concerns about sprawl and detachment
  between location of work and location of homes
  are rising, residents of Berks County and the
  Reading area in particular have shorter trips to
  work than national averages

21
Berks and Surrounding Counties Demographics
Commuting Patterns
Berks residents are increasingly commuting to
other counties in the region over the last 20
years, especially to the neighboring counties in
the Philadelphia Metro area
Number of Berks Workers commuting to other area
Counties (1980-2000)
Number Commuting from Berks to other Counties
Overall Berks Population Growth
Percent growth
75
121
287
128
64
108
20
CAGR
2.8
4.0
7.0
4.2
2.5
3.7
0.9
Source 2000 US Census
22
Berks and Surrounding Counties Demographics
Commuting Patterns
Very few people commute from the inner suburbs to
Berks or from Berks to Philadelphia. The most
common commutes are between inner suburbs and
Philadelphia and between some outer counties
Source 2000 Census Journey to Work Data Note
Inner Counties include Bucks, Chester, Delaware,
and Montgomery. Outer Counties include
Lancaster, Lebanon,, Lehigh, Northampton, and
Schuylkill
23
Berks and Surrounding Counties Demographics
Commuting within and out of Berks County
The majority of residents of towns around Reading
work in that area, while residents of other parts
of the county tend to work outside of the Reading
area
Place of Work for Residents of Different Parts of
Berks County (2000)
Includes Alsace, Bern, Cumru, Exeter, Kenhorst,
Laureldale, Lower Alsace, Lower Heidelberg,
Mohnton, Mount Penn, Muhlenberg, Reading,
Shillington, Sinking Spring, South Heidelberg,
Spring, St. Lawrence, Wernersville, West Lawn,
West Reading, Wyomissing, Wyomissing Hills
Includes Amity, Bally, Bechtelsville, Boyertown,
Caernarvon, Colebrookdale, Douglass, Earl,
Hereford, New Morgan, Union, Washington
Includes Adamstown, Albany, Bernville, Bethel,
Birdsboro, Brecknock, Centreport, Centre,
District, Fleetwood, Greenwich, Hamburg,
Heidelberg, Jefferson, Kutztown, Leesport,
Lenhartsville, Longswamp, Lyons, Maidencreek,
Marion, Maxatawny, North Heidelberg, Oley,
Ontelaunee, Penn, Perry, Pike, Richmond, Robeson,
Robesonia, Rockland, Ruscombmanor,
Shoemakersville, Strausstown, Tilden,
Tulpehocken, Upper Bern, Upper Tulpehocken,
Windsor, Womelsdorf,
Source 2000 US Census Journey to Work
24
Berks and Surrounding Counties Demographics Town
Commuting Patterns
Commuters to the Inner Counties are concentrated
in the townships and boroughs of Eastern Berks,
while people working in the Reading area live in
the ring of towns right around the city
Towns where more than 40 of workers commuting to
inner counties

• Douglass 57
• Amity 57
• Hereford 55
• Bechtelsville 54
• New Morgan 54
• Colebrookdale 53
• Washington 52
• Boyertown 50
• Union 44
• Caernavon 41

Source 2000 Census Journey to Work Data, Berks
County Planning Commission
25
Berks and Surrounding Counties Demographics
Commuting Patterns
Almost 80 of Berks working residents work in the
county, a higher percent than surrounding
counties and the national average
Percent of Workers working in County of Residence
National average 73
Percent working in County
Area of Residence
Note Outer Counties includes Lancaster,
Lebanon, Lehigh, Northampton and Schuykill.
Inner Suburbs includes Bucks, Chester, Delaware
and Montgomery Source 2000 US Census
26
Berks and Surrounding Counties Demographics
Commuting Time
Consistent with patterns of where people work,
Berks County average commutes are less than
national or regional averages, but the situation
in the eastern townships differs from the Reading
area
Estimated Average Journey to Work time (2000)
Source 2000 Census Note Inner Counties
include Bucks, Chester, Delaware, and
Montgomery. Outer Counties include Lancaster,
Lebanon, Lehigh, Northampton, and Schuylkill.
See Appendix for Definition of Reading Area,
Eastern Townships, and Rest of County Note Data
is estimated from ranges given in Census data for
number of people with various commute time lengths
27
Berks County Demographics Minority Population

• Greater Reading is a racially segregated
  community
• Minorities are highly concentrated in the city of
  Reading
• Berks county is one of the most racially
  segregated metropolitan areas
• Areas with a high percentage of minorities also
  have higher poverty rates
• There are emerging communities outside of the
  city of Reading with relatively higher
  percentages of minorities compared to the rest of
  Berks county

28
Berks County Demographics Minority Populations
Minority Populations in Berks County are highly
concentrated in the City of Reading
Minority Percent of Area Population
Total Population
81,207
292,431
Hispanic Population
30,302
6,055
African-American Population
11,479
4,530
Source 2000 US Census
29
Berks County Demographics Comparison of
Segregation to other Places
Reading is the second most segregated
metropolitan area in the United States for
Hispanics
Note Cities are ranked by a Dissimilarity
Index, which measures whether one particular
group is distributed across census tracts in the
metropolitan area in the same way as another
group. A high value indicates that the two groups
tend to live in different tracts. Values range
from 0 to 100. A value of 60 (or above) is
considered very high. It means that 60 (or more)
of the members of one group would need to move to
a different tract in order for the two groups to
be equally distributed. Values of 40 or 50 are
usually considered a moderate level of
segregation, and values of 30 or below are
considered to be fairly low. Source Lewis
Mumford Center at SUNY-Albany
30
Berks County Demographics Minority Populations
and Poverty
Areas with a high minority population in Berks
tend to have higher rates of poverty, although
some outlying towns are the exception
Percent of Township Population White-Only (2000)
Percent of Township Population in Poverty (2000)
Source 2000 Census, American FactFinder
31
Berks County Demographics Concentration of
Minority Populations
There are some towns outside of the city of
Reading with higher percentages of minorities
compared to the rest of the county
Percent of Township Population Latino (2000)
Percent of Township Population African-American
(2000)
Source 2000 Census, American FactFinder
32
Berks and Surrounding Counties Demographics
Crime Statistics
Perceptions of crime in Reading are grounded in
data. Crime in Reading is higher than national
averages, and higher than surrounding cities on
several significant measures
2002 Overall Crime Index per 1,000 Population
2002 Murders per 1,000 Population
2002 Robberies per 1,000 Population
Source 2002 Federal Bureau of Investigation
Crime Reports from www.areaconnect.com
33
Berks and Surrounding Counties Demographics
Review of Past Reports
Of the 21 reports reviewed on major studies
relating to Berks County and Greater Reading, 80
were research studies and few recommendations
were implemented. The studies concentrated on
Business Environment, General Surveys and
Strategy Planning issues.
Key Themes

• Strengths/Progress
• Expected growth in health care, education, and
  service jobs
• Collective desire to revitalize the Greater
  Reading area
• Greater Reading has a strong base of economic
  development research to build upon

• Challenges
• Statewide people are not satisfied with economic
  situation and outlook
• High taxes and healthcare costs
• Low education levels, poor schools, and
  low-paying jobs reduce Readings competitiveness

SCOPE TYPE
GEOGRAPHIC SCOPE
17
Business Environment 6
Fact Sheets 2
General Survey 4
Housing 1
6
Industry Specific 2
Minority Business Development 1
2
Strategy Planning 4
Research Study
Strategy Formulation
Implementation
Workforce Development 2
Note See Appendix for information
34
Agenda
Initiative for a Competitive Greater Reading

• I. Review Key Highlights from Last Meeting
• II. Berks County in the Context of Southeast
  Pennsylvania
• Snapshot of key economic indicators
• Demographic trends
• Review of past reports
• III. Economic Structure and Berks County
  Strengths
• Snapshot of economic base
• Berks County economic position nationally and
  regionally
• Berks County competitive assets compared to the
  region
• IV. Next Steps
• Identify 10 clusters to conduct more detailed
  analysis
• Next Strategy Board meeting in May

35
Berks County EconomicsEconomic Base Summary

• The largest clusters by employment size are
  mainly local clusters (clusters that cater to the
  local population)
• Many of Berks County traded clusters (clusters
  that serve the broader economy) are dominated by
  a few big employers, making the cluster dependent
  on their existence
• Examples include Lighting Electrical
  Equipment, Medical Devices and Financial Services
• Agere Systems closing reduced the Information
  Technology cluster size by 80, practically
  obliterating the cluster existence in Berks
• Berks clearly dominates the Southeast
  Pennsylvania region in the Lighting Electrical
  Equipment cluster with 40 share of employment
• Recent jobs lost are a result of economic forces
  vs. local conditions and employment additions
  reflect the continued shift to retail

36
Berks County Economics Economic Base
The Top 10 employers in Berks County represent
approximately 15 of the total workforce. They
are comprise of a diverse set of industries
mainly focused on the local population
Sources 2003 Berks County Chamber of Commerce
top employer list, 2001 County Business Pattern
data Note The percentage of cluster employment
is only an approximation due to the different
sources and time frame of data
37
Berks County Economics Economic Base
The largest clusters by employment are mainly
local clusters. The majority of traded clusters
are comprised of 1-3 large employers, making the
cluster dependent on their existence
Top 20 Clusters by Employment in Berks County
Note Shaded boxes are traded clusters, non
shaded boxes are local clusters Sources 2001
County Business Pattern
38
Berks and Surrounding Counties Economics
Activity in Largest Traded Clusters in Berks
County
Berks has above average share (6) in a few
clusters. Several of the large Berks clusters
are only a small part of the total regional
cluster activity
Percent of Total Employment in Southeast
Pennsylvania in Cluster among 15 Largest Traded
Clusters in Berks County
Average 72
Percent of total SE PA employment in Cluster
Average 22
Average 6
Metal Manufacturing
Medical Devices
Automotive
Business Services
Hospitality and Tourism
Financial Services
Processed Food
5,133
8,845
3,786
1,789
3,055
2,154
1,898
4,088
1,426
6,527
1,715
1,427
1,511
4,571
2,201
Berks Employment
Source Cluster Mapping Project, 2001 Census
County Business Patterns Data, ICIC
Analysis Note Inner Counties include
Philadelphia, Montgomery, Chester, Delaware, and
Bucks. Outer Counties include Lancaster,
Lebanon, Schuulkill, Lehigh, and Northampton
39
Berks County Economics Employment Changes
Firms that left Berks County since 2000 were
mainly due to market forces (e.g,. downturns in
the economy, consolidations due to mergers, etc.)
and not local business environment issues (e.g.,
high taxes, lack of skilled, labor, unavailable
land, etc.)
Source Reading Eagle, February XX, 2004
40
Berks County Economics Economic Changes
The Top 15 employers that have recently added
employment in Berks County are mainly in the
retail sector serving the local population, which
is partially due to the population growth
Source Reading Eagle, February XX, 2004
41
Berks County Economics Workforce by Industry
.
In the past decade employment in Berks shows the
emergence of the information and arts industry.
Overall employment level have remained stagnant
between 1990 and 2000.
Note Industry definitions are set by the Census
Bureau and are unrelated to cluster
definitions. Source 1990 2000 Census
42
Cluster AnalysisGuide to reading Cluster Maps

• The horizontal and vertical axes indicate a
  measure of growth share or size of the cluster.
• The size of the bubbles indicate the total number
  of people employed in Berks County in that
  particular cluster.
• Note There are two main types of clusters
  traded, and local (see boxes below for
  explanation of each). While all clusters are
  important to local economies, traded clusters
  are the growth engines that bring export
  dollars into a region.
• Some of the Cluster Maps show both traded and
  local clusters which are color coded, other maps
  show only traded clusters

Traded Clusters
Local Clusters

• Export products beyond their region--driving
  economies
• Examples Financial Services, Metal
  Manufacturing, Business Services
• 32 of US employment

• Serve local demand
• Examples Local Personal Services, Local Retail,
  Local Construction
• 68 of US employment

Sources 2003 Dun Bradstreet ICIC analysis
43
Berks County Economics Cluster Analysis
Berks has a higher percentage of traded clusters
than the national average, which is an important
positive sign given its small population size
Berks County
National Average
32
40
60
68
Source 2001 County Business Pattern Data,
Institute for Strategy and Competitiveness
44
Berks and Surrounding Counties EconomicsCluster
Analysis Summary

• Many of Berks large traded clusters are
  performing well
• Metal Manufacturing, Business Services and
  Financial Services are growing faster than the
  national average
• Berks increased it share of national employment
  in each of the above clusters
• Berks employment growth compared to the outer
  counties is comparable. However, there are a few
  clusters in Berks that are growing faster and
  have higher employment concentration than the
  outer counties
• Business Services and Local Commercial Services
  are growing faster in Berks
• Metal Manufacturing and Lighting Electrical
  Equipment have a higher level of employment
  concentration in Berks
• Berks is growing faster in many clusters compared
  to the inner counties mainly due to its
  population growth and smaller employment base
• Clusters such as Local Hospitality Establishments
  and Local Health Services are growing in Berks
  and directly linked to population size
• Berks has a much smaller employment base in
  Business Services and Financial Services
  compared to the inner counties

45
Berks County Economics Cluster Analysis Summary
Several clusters are experiencing fast growth
based on its small employment base.
Additionally, there are clusters where Berks
clearly has the highest level of employment
concentration compared to the region
Fastest growing clusters in Berks Top 15
Highest level of employment concentration Top 15
Pre-Agere plant closing Location Quotient is
the of Berks Employment divided by the of US
employment for a cluster. A Location Quotient
above 1 indicates a cluster has above average
employment concentration. Source 1990 and 2001
County Business Pattern Data
46
Reading MSA Economic Base (1990-2001)Top 15
Traded Clusters by Berks Employment Size
Although Readings national employment share is
small, the LEE cluster is nationally significant.
90
1
1
1
70
2
2
2
3
4
5
Change of National Share (1990-2001)
6
1 Business Services 2 Financial Services
3 Information Technology 4 Plastics 5
Metal Manufacturing 6 Lighting Electrical
Equipment 7 Processed Foods 8 Heavy
Construction Services 9 Medical Devices 10
Hospitality Tourism 11 Education Knowledge
Creation 12 Apparel 13 Distribution
Services 14 Building Fixtures, Equipment
Services 15 Automotive
7
8
9
10
11
12
13
14
5,000 EMP
15
Share of National Cluster Employment (2001)
Source CBP 1990-2001, ISC Cluster Mapping Project
Source CBP 1990-2001, ISC Cluster Mapping Project
Source CBP 1990-2001, ISC Cluster Mapping Project
47
Philadelphia MSA Economic Base (1990-2001) Top 15
Clusters by Philadelphia Employment Size
Business Services, Financial Services and
Education Knowledge Creation are the economic
anchors for the Philadelphia MSA
1
Financial Services
2
Change of National Share (1990-2001)
Education Knowledge Creation
3
4
5
6
7
1 Information Technology 2 Transportation
Logistics 3 Hospitality Tourism 4
Distribution Services 5 Publishing
Printing 6 Entertainment 7 Plastics 8
Building Fixtures, Equipment Services 9
Processed Foods 10 Metal Manufacturing 11
Analytical Instruments 12 Heavy Construction
Services
8
9
Business Services
10
11
12
25,000 EMP
Share of National Cluster Employment (2001)
Source CBP 1990-2001, ISC Cluster Mapping Project
48
New York City MSA Economic Base (1990-2001) Top
15 Clusters by New York City Employment Size
The NYC MSA has the same economic anchors as the
Philadelphia MSA, but on a larger scale
1 Information Technology 2 Heavy
Construction Services 3 Processed Foods 4
Building Fixtures, Equipment Services 5
Biopharmaceuticals 6 Transportation
Logistics 7 Distribution Services 8
Entertainment 9 Publishing Printing 10
Apparel 11 Jewelry Precious Metals
1
1
10
11
Change of National Share (1990-2001)
2
26
Hospitality Tourism
5
Financial Services
Education Knowledge Creation
Business Services
9
7
3
4
6
8
25,000 EMP
Share of National Cluster Employment (2001)
Source CBP 1990-2001, ISC Cluster Mapping Project
49
Berks and National Economic Snapshot
(1990-2001) Top 15 Traded Clusters by Berks
Employment
Berks has several clusters that are growing
faster than the US
Growing in Berks Growing in the US
Not Growing in Berks Growing in the US
Information Technology (pre-Agere closing)
Financial Services
Business Services
Education Knowledge Creation
National Employment CAGR (1990-2001)
Distribution Services
Medical Devices
Hospitality Tourism
Building Fixtures, Equipment Services
Plastics
7
Processed Food
Heavy Construction Services
Automotive
Lighting Electrical Equipment
Metal Manufacturing
Growing in Berks Not Growing in the US
Not Growing in Berks Not Growing in the US
5,000 EMP
Apparel
Berks County Employment CAGR (1990-2001)
() CAGR -- Compounded Annual Growth Rate Source
Cluster Mapping Project, Census County Business
Pattern data ICIC analysis
50
Berks Top 15 All Clusters Change of Share of
National Employment (1990-2001)
Berks has increased its share of national
employment only in traded clusters that are
growing. Local clusters have tended to not gain
share due to below average population growth
1 Local Real Estate, Construction and
Development 2 Local Hospitality
Establishments 3 Local Community and Civic
Organizations 4 Local Motor Vehicle Products
and Services 5 Local Food and Beverage
Processing and Distribution
Business Services
Financial Services
Percent increase in Berkss share of National
Employment in Cluster (1990-2001)
Growing in Berks Berks gained share
Information Technology (pre-Agere closing)
Metal Manufacturing
Lighting and Electrical Equipment
Local Retail Clothing
6
4
Local Commercial Services
3
5
Processed Food
2
1
Local Health Services
Not Growing in Berks Berks did not gain share
Traded Cluster
Local Financial Services
5,000 EMP
10,000 Emp
Growing in Berks Berks did not gain share
Berks County Employment CAGR 1990-2001
Source Cluster Mapping Project, County Business
Pattern data ICIC analysis
51
Berks Top 15 Traded Clusters Change of Share of
National Employment (1990-2001)
Most of the large traded clusters in Berks
increased their share of national employment in
the 1990s while many of the smaller clusters
lost ground against national growth
Business Services
Growing in Berks Berks gained share
Financial Services
Percent increase in Berkss share of National
Employment in Cluster (1990-2001)
Information Technology (pre-Agere closing)
Metal Manufacturing
Lighting and Electrical Equipment
Plastics
Heavy Construction Services
Processed Foods
6
Medical Devices
4
Education and Knowledge Creation
5
Distribution Services
Apparel
1
Hospitality and Tourism
Building Fixtures, Equipment, and Services
5,000 EMP
Automotive
Growing in Berks Berks did not gain share
Not Growing in Berks Berks did not gain share
Berks County Employment CAGR 1990-2001
Source Cluster Mapping Project, County Business
Pattern data ICIC analysis
52
Berks and Outer Counties Economic Base
(1990-2001) Top 15 All Clusters by Berks
Employment Size
There are a few clusters in Berks ithat are
growing faster than the Outer Counties
Financial Services
10
Growing in Berks Growing in the Outer Counties
Not Growing in Berks Growing in the Outer Counties
6
Local Commercial Services
5
3
Outer Counties Employment CAGR (1990-2001)
4
2
1
(pre-Agere closing)
11
8
9
7
12
1 Local Motor Vehicle Products Services 2
Local Community Civic Organizations 3 Local
Real Estate, Construction, Development 4
Local Hospitality Establishments 5 Local Health
Services 6 Lighting Electrical Equipment 7
Local Financial Services 8 Processed Food 9
Local Food Beverage Processing
Distribution 10 Local Retail Clothing
Accessories 11 Information Technology
10
Not Growing in Berks Not Growing in the Outer
Counties
Metal Manufacturing
Traded Cluster
5,000 EMP
Berks County Employment CAGR (1990-2001)
Outer Counties Lancaster, Lehigh, Northampton,
Schuylkill, Lebanon () CAGR -- Compounded Annual
Growth Rate Source Cluster Mapping Project,
Census County Business Pattern data ICIC
analysis
53
Berks and Inner Counties Economic Base
(1990-2001) Top 15 All Clusters by Berks
Employment
Berks is growing faster in many clusters compared
to the Inner Counties, partially due to the
higher population growth and smaller employment
base
(pre-Agere closing)
11
Growing in Berks Growing in the Inner Counties
Not Growing in Berks Growing in the Inner Counties
7
Business Services
Local Commercial Services
Local Financial Services
Inner Counties Employment CAGR (1990-2001)
2
3
4
1
9
5
12
Growing in Berks Not Growing in the Inner Counties
10
8
1 Local Motor Vehicle Products Services 2
Local Community Civic Organizations 3 Local
Real Estate, Construction, Development 4
Local Hospitality Establishments 5 Local Health
Services 6 Lighting Electrical Equipment 7
Local Financial Services 8 Processed Food 9
Local Food Beverage Processing
Distribution 10 Local Retail Clothing
Accessories 11 Information Technology
Not Growing in Berks Not Growing in the Inner
Counties
Metal Manufacturing
6
Traded Cluster
5,000 EMP
Berks County Employment CAGR (1990-2001)
Inner Counties Philadelphia, Montgomery,
Delaware, Bucks, Chester Source Cluster Mapping
Project, Census County Business Pattern data
ICIC analysis
54
Berks Top 15 Traded Clusters Local Concentration
Compared to Outer Counties (2001)
There are several clusters that Berks clearly has
a higher level of employment concentration than
the Outer Counties
1 Heavy Construction Services
2 Education and Knowledge Creation
3 Financial Services
Apparel
4 Distribution Services
5 Automotive
6 Hospitality Tourism
Building Fixtures, Equipment Services
7 Transportation and Logistics
8 Medical Devices
Outer Counties Location Quotient
Processed Foods
2
Plastics
Lighting Electrical Equipment
1
8
Metal Manufacturing
2
3
4
Information Technology (Pre-Agere closing)
5
6
5,000 EMP
Business Services
7
Berks County Location Quotient
Note Location Quotient is the percent of
employment locally in a given cluster divided by
the percent of employment nationally in that
cluster. Numbers greater than 1 indicate an
industry more highly concentrated in the area,
numbers less than 1 indicate an industry less
concentrated than the national average Source
Cluster Mapping Project, County Business Pattern
data ICIC analysis
55
Berks Top 15 Traded Clusters Local Concentration
compared to the Inner Counties (2001)
The Inner Counties have a higher concentration of
employment in clusters that are service oriented
compared to Berks, which is predominately
manufacturing oriented
1 Business Services
2 Medical Devices
Education Knowledge Creation
3 Plastics
4 Heavy Construction Services
5 Distribution Services
Financial Services
6 Hospitality Tourism
7 Building Fixtures, Equipment Services
Apparel
8 Transportation Logistics
Processed Food
7
Inner Counties Location Quotient
5
1
2
Metal Manufacturing
3
Lighting Electrical Equipment
8
4
Information Technology (Pre-Agere closing)
6
Automotive
5,000 EMP
Berks County Location Quotient
Note Location Quotient is the percent of
employment locally in a given cluster divided by
the percent of employment nationally in that
cluster. Numbers greater than 1 indicate an
industry more highly concentrated in the area,
numbers less than 1 indicate an industry less
concentrated than the national average Source
Cluster Mapping Project, County Business Pattern
data ICIC analysis
56
Berks County EconomicsCluster Profiles Metal
Manufacturing
Metal Manufacturing in Berks County is one of the
few locations nationally that is growing

• Key Highlights
• Berks County has the highest concentration of
  employment in Metal Manufacturing in the SE
  Pennsylvania region
• It is growing at CAGR 1.23 (1990-2001) compared
  to -0.02 nationally
• Carpenter is the 4th largest employer in Greater
  Reading with 1,775 employees representing 20 of
  the clusters employment
• Since 2001 cluster employment decreased by 12
  from downsizing (Carpenter-350, PA Steel
  Foundry -138, and Empire Steel -100)

Greater Reading 2001 Basic Metrics National Rank
(by emp) 35 out of 381 Employment 8,845 Establish
ments 65 Average Est. Size 136 CAGR1
(1990-2001) 1.23 Location Quotient2 4.95 Averag
e Wage 31,751
Composition by Employment
Other 12
Fabricated Metal Products 8
Metal Processing 8
Iron Steel Mills Foundries 52
Precision Metal Products 20
1CAGR Compounded Annual Growth Rate. 2 Location
Quotient (LQ) measures Greater Readings share of
cluster employment compared to the national
average. A LQ of 1 means that Greater Readings
employment share is equal to the national average.
Other Nonferrous Mills Foundries, Fasteners,
Primary Metal Products, Metal Furniture, General
Industrial Machinery, Wire Springs, Saw Blades
Handsaws, Metal Alloys, Laundry Cleaning
Equipment, Metal Armaments, Pumps, Environmental
Controls
Source CBP 1990-2001, ISC Cluster Mapping
Project, Berks County Chamber of Commerce
September 2003
57
Berks County EconomicsCluster Profiles Business
Services
Business Services is growing and gaining share
nationally (80 increase), but holds only 5
employment share in the SE Pennsylvania region

• Key Highlights
• Business Services in Berks has the fastest
  employment growth in SE Pennsylvania (11.6) and
  supercedes the national average (5)
• It is a key cluster for Philadelphia (1
  employer) and NYC (2 employer). Both of these
  locations are losing share to other locations.
  Reading is in close proximity to both of these
  locations
• It appears that Business Services in Berks is not
  dominated by 1 or 2 large employers. Jetson
  Direct Mail Services is the 14th largest employer
  with 800 employees representing 12 of the
  clusters employment

Greater Reading 2001 Basic Metrics National Rank
(by emp) 104 out of 381 Employment 6,527 Establis
hments 354 Average Est. Size 18 CAGR1
(1990-2001) 11.64 Location Quotient2 0.99 Avera
ge Wage 48,220
Composition by Employment
Other 3
Marketing Related Services 28
Computer Programming 9
Engineering Services 28
Management Consulting 15
Professional Organizations Services 17
1CAGR Compounded Annual Growth Rate. 2 Location
Quotient (LQ) measures Greater Readings share of
cluster employment compared to the national
average. A LQ of 1 means that Greater Readings
employment share is equal to the national average.
Other Photocopying, Computer Services,
Facilities Support Services, Online Information
Services, Laundry Services
Source CBP 1990-2001, ISC Cluster Mapping
Project, Berks County Chamber of Commerce
September 2003
58
Berks County EconomicsCluster Profiles Lighting
Electrical Equipment
Berks County is the national leader in Batteries

• Key Highlights
• Berks County has 16.3 share of national
  employment in the Lighting Electrical Equipment
  cluster and 40 share of the total employment in
  SE Pennsylvania for this cluster
• East Penn the leading employer represents
  approximately 75 of the clusters employment.
  Enersys is also a very large employer
• The cluster is declining at CAGR -1.0 in Berks
  and -4.5 nationally. Companies such as Exide
  has ceased operations in the area (representing
  325 jobs), while East Penn has expanded by 252
  jobs

Greater Reading 2001 Basic Metrics National Rank
(by emp) 10 out of 381 Employment 5,133 Establish
ments 16 Average Est. Size 321 CAGR1
(1990-2001) -0.61 Location Quotient2 12.26 Aver
age Wage N/A
Composition by Employment
Other 11
Metal Parts 16
Batteries 73
1CAGR Compounded Annual Growth Rate. 2 Location
Quotient (LQ) measures Greater Readings share of
cluster employment compared to the national
average. A LQ of 1 means that Greater Readings
employment share is equal to the national average.
Other Electric Lamps, Electrical Parts,
Switchgear, Lighting Fixtures
Source CBP 1990-2001, ISC Cluster Mapping
Project, Berks County Chamber of Commerce
September 2003
59
Berks County EconomicsCluster Profiles
Financial Services
Despite leading the region in growth, Financial
Services is less represented in Berks than in the
rest of Southeast Pennsylvania region

• Key Highlights
• Berks has the fastest annual growth rate in the
  region (CAGR 7.77 1990-2001) for Financial
  Services. This is also above the national rate at
  2.63
• Similar to Business Services, Financial Services
  is an economic anchor for Philadelphia (2
  employer) and New York City (1 employer) and
  these locations are also losing national share.
  As Financial Services focus more on parallel and
  back-up sites, Readings close proximity can be
  leveraged
• Sovereign Bank, Wachovia Mortgage and Encompass
  Insurance (Allstate) represent approximately 60
  of the cluster employment
• Bank mergers have led to office closures, such as
  former First Union facility at Spring Ridge

Greater Reading 2001 Basic Metrics National Rank
(by emp) 79 out of 381 Employment 4,571 Establish
ments 173 Average Est. Size 26 CAGR1
(1990-2001) 7.77 Location Quotient2 1.03 Averag
e Wage 42,159
Composition by Employment
Depository Institutions 52
Other 12
Securities Brokers, Dealers Exchanges 8
Insurance Products 8
1CAGR Compounded Annual Growth Rate. 2 Location
Quotient (LQ) measures Greater Readings share of
cluster employment compared to the national
average. A LQ of 1 means that Greater Readings
employment share is equal to the national average.
Other Health Plans, Passenger Car Leasing, Real
Estate Investment Trusts, Risk Capital Providers
Source CBP 1990-2001, ISC Cluster Mapping
Project, Berks County Chamber of Commerce
September 2003
60
Berks County EconomicsCluster Profiles Medical
Devices
Greater Reading has an above average
concentration of employment in Medical Devices

• Key Highlights
• Although Greater Reading represents 6 of overall
  regional employment, it represents 18 of Medical
  Devices regional employment. However, it is
  losing share nationally (16 decrease)
• Large centers of employment, Philadelphia and New
  York MSA, show a 20 employment growth in the
  past 11 years
• Arrow, the 15th largest employer in Greater
  Reading, and Alcon employ approximately 70 of
  cluster employment

Greater Reading 2001 Basic Metrics National Rank
(by emp) 52 out of 381 Employment 1,789 Establish
ments 10 Average Est. Size 18 CAGR1
(1990-2001) 0.60 Location Quotient2 3.68
Average Wage 48,924
Composition by Employment
Other 4
Surgical Instruments Supplies 96
1CAGR Compounded Annual Growth Rate. 2 Location
Quotient (LQ) measures Greater Readings share of
cluster employment compared to the national
average. A LQ of 1 means that Greater Readings
employment share is equal to the national average.
Other Biological Products, Ophthalmic Goods,
Dental Instruments Supplies
Source CBP 1990-2001, ISC Cluster Mapping
Project, Berks County Chamber of Commerce
September 2003
61
Berks County EconomicsAgriculture Industry
Profile
Agriculture provide a livelihood to over 2,000
people in Berks County. There is proportionally
less farming activity in Berks than the US as a
whole. The age of the data and the challenges in
tracking agricultural activity make it difficult
to draw solid conclusions
Agricultural Data from the 1997 US Agriculture
Census

• Berks County ranks 3rd for most productive
  non-irrigated farming county in Pennsylvania
• Lancaster County ranks 1 with 725 million cash
  receipts and 5,910 farms
• Chester County ranks 2 with 333 million cash
  receipts and 1,845 farms
• Berks County ranks 3 with 252 million cash
  receipts and 2,065 farms

Sources 2000-2001 Pennsylvania Agricultural
Statistics Books (last updated 4/02), 1997 US
Agriculture Census
62
Berks County EconomicsReading Arts and Culture
Profile
Berks County serves as the regional arts and
culture hub for neighboring counties.

• Only 1.4 of Berks employment is located in the
  Arts, Recreation and Entertainment Industry. This
  is below the national employment rate of 2.2.
  However, it is comparable to Philadelphia at 1.5
• Greater Reading serves as an arts facility anchor
  for neighboring outer counties
• The Sovereign Center houses the only arena and
  7500-seat theatre within the outer counties
• The Reading Public Museum serves as a regional
  educational, artistic and scientific resource for
  South Central and Southeastern Pennsylvania. Over
  7,000 students visit the museum a year on school
  tours
• The Arts and Culture industry generates
  significant economic impact
• The Americans in Arts study showed the nations
  non-profit arts industry generated 134 billion
  in total economic activity 4.85 million full-time
  equivalent jobs. In Berks County, the study
  showed an 18 million economic impact
• The First Energy JazzFest is estimated to draw
  over 40,000 visitors and bring in an estimated 4
  million

Sources 2000 Bureau of Labor Statistics, Berks
Convention, Arts Economic Prosperity The
Economic Impact of Nonprofit Arts Organizations
and Their Audiences
63
Agenda
Initiative for a Competitive Greater Reading

• I. Review Key Highlights from Last Meeting
• II. Berks County in the Context of Southeast
  Pennsylvania
• Snapshot of key economic indicators
• Demographic trends
• Review of past reports
• III. Economic Structure and Berks County
  Strengths
• Snapshot of economic base
• Berks County economic position nationally and
  regionally
• Berks County competitive assets compared to the
  region
• IV. Next Steps
• Identify 10 clusters to conduct more detailed
  analysis
• Next Strategy Board meeting in May

64
Discussion QuestionsThoughts on Pre-read
Materials

• How does the demographic trends in Berks County
  impact the economic vision for Greater Reading?
• Are there other demographic trends that should be
  discussed?
• What are Berks Countys strongest economic
  assets?
• Which clusters seem well-positioned to leverage
  Berks County economic assets?

65
Discussion QuestionsDefining Greater Readings
Economic Vision
It is important to gain consensus on the economic
vision for Greater Reading in order to develop a
deliberate economic strategy and to inform the
cluster selection process. Here are the Steering
Committees initial thoughts to aid in this
discussion
Aspects of Greater Readings Economic Vision

• A commitment to innovation
• Technology driven clusters (all clusters can
  become more technological)
• A revitalized downtown Reading
• Increased choices and economic opportunities for
  low-income residents
• Educated and entrepreneurial workforce
• Risk taking and bigger more focused investments
• Preservation of Greater Readings identity

Sample Developing a few medium-sized clusters
that provide competitive inputs to businesses
located in New York and Philadelphia and jobs
that can support a quality lifestyle for
low-skilled residents while offering them
opportunities to grow and advance.
66
Next Steps

• Prepare detailed profiles of selected clusters
• Conduct next Strategy Board meeting to select
  final list of 3-4 targeted clusters in May
• Begin to assemble contacts in key industries for
  possible membership on the Cluster Action teams

67
Appendix

• Definitions
• Berks Township classifications
• Inner and outer counties
• Cluster descriptions
• Comparison of inner and outer counties economic
  characteristics
• Summary listing of past reports

68
AppendixBerks Township Classification Used in
Migration and Commuting Analysis
Reading Area
Alsace, Bern, Cumru, Exeter, Kenhorst,
Laureldale, Lower Alsace, Lower Heidelberg,
Mohnton, Mount Penn, Muhlenberg, Reading,
Shillington, Sinking Spring, South Heidelberg,
Spring, St. Lawrence, Wernersville, West Lawn,
West Reading, Wyomissing, Wyomissing Hills
Eastern Townships
Amity, Bally, Bechtelsville, Boyertown,
Caernarvon, Colebrookdale, Douglass, Earl,
Hereford, New Morgan, Union, Washington
Rest of County
Adamstown, Albany, Bernville, Bethel, Birdsboro,
Brecknock, Centreport, Centre, District,
Fleetwood, Greenwich, Hamburg, Heidelberg,
Jefferson, Kutztown, Leesport, Lenhartsville,
Longswamp, Lyons, Maidencreek, Marion, Maxatawny,
North Heidelberg, Oley, Ontelaunee, Penn, Perry,
Pike, Richmond, Robeson, Robesonia, Rockland,
Ruscombmanor, Shoemakersville, Strausstown,
Tilden, Tulpehocken, Upper Bern, Upper
Tulpehocken, Windsor, Womelsdorf,
69
AppendixSoutheast Pennsylvania County
Classifications
Inner Suburbs

• Bucks County
• Chester County
• Delaware County
• Montgomery County
• Philadelphia (included in Inner Counties, not
  Inner Suburbs)

Outer Counties

• Lancaster County
• Lebanon County
• Lehigh County
• Northampton County
• Schuylkill County

Berks County is ALWAYS analyzed alone, and is
NEVER grouped in with either of these
classifications
70
AppendixDifferences between Philadelphia Inner
Counties and Outer Counties

• For comparative analysis we want to understand
  what parts of the region have similar economies
  to Berks
• The data indicates that the economies of the
  Outer Counties (Berks, Lehigh, Northampton,
  Schuylkill, Lebanon, and Lancaster) are different
  from the economies of the Inner Counties
  (Chester, Delaware, Montgomery, Bucks, and
  Philadelphia)
• The key difference is that Philadelphia and its
  inner suburban counties have low levels of
  manufacturing activity while manufacturing is
  central to the economies of most outer counties
  around Berks
• The manufacturing clusters within the outer ring
  are different across the each county

71
AppendixCluster Descriptions Local Clusters
72
AppendixCluster Descriptions Traded Clusters
Note Not all traded clusters listed.
73
Appendix Comparison of Key Economic Sectors
Berks and Surrounding Counties
Percent of Total Area Employment in Manufacturing
(2001)
Outer Counties
Inner Counties
Outer Counties
Berks
Lebanon
Lancaster
Philadelphia
Delaware
Bucks
Percent of Total Area Employment in Professional,
Scientific, and Technical Services (2001)
Outer Counties
Inner Counties
Outer Counties
Berks
Lebanon
Lancaster
Philadelphia
Delaware
Bucks
Source 2001 Census Survey of County Business
Patterns
74
AppendixGreater Berks Studies Reviewed