2019

Greater Philadelphia Cell and Gene Therapy and Connected Health Sectors – Future Workforce and Talent Needs Analysis

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In 2019, the CEO Council for Growth, University City Science Center, and University City District’s West Philadelphia Skills Initiative convened a partnership to leverage their resources and networks on an initiative to support and grow the Philadelphia region’s cell and gene therapy and connected health industries. The stimulus for this partnership arose from a need, identified by various stakeholders, to understand the growth of and gaps in the cell and gene therapy and connected health workforce in Greater Philadelphia. Econsult Solutions, Inc. (ESI) was hired to provide an independent assessment of the future workforce and talent needs of the industries.

To determine the scope of the cell and gene therapy and connected health sectors in the eleven-county region, ESI used LinkedIn Talent Insights and Burning Glass Labor Insights to determine both the labor market supply and demand, respectively, for the cell and gene therapy and connected health sectors in Greater Philadelphia. Primary research was also conducted through surveys, interviews, and focus groups consisting of professionals with knowledge of the sectors, including academic researchers, industry and human resources experts, and workforce development organizations. Both quantitative and qualitative data and subsequent analysis informed our understanding of the scope of the sectors and identified barriers and opportunities for growth in Greater Philadelphia.

This report was funded in part by a grant from The Lenfest Foundation and supported by the investors in the Cell and Gene Therapy and Connected Health Initiative.

The Regional Impact of Philadelphia International Airport and Northeast Philadelphia Airport 2019

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ESI was commissioned in 2019 by The Philadelphia International Airport (“PHL”) and Northeast Philadelphia Airport (“PNE”), to study the direct and indirect regional economic impacts attributable to PHL on an annual basis, updating a similar analysis from 2017.

PHL serves a hub of activity and for the 11-county Philadelphia Metropolitan Statistical Area (MSA). Supporting the movement of more 31.7 million passengers annually, PHL is also a major center of employment and procurement activity. Using a custom economic impact model through the IMPLAN’s input/output modeling framework, ESI found that the direct and indirect economic activity associated with PHL annually produces $16.8 billion in output within the 11-county Philadelphia MSA, supporting 106,800 jobs and $5.4 billion in total earnings.

The airport is financially self-sustaining and receives no local tax dollars. Further, the economic activity it supports has significant fiscal impacts for state government and for local jurisdictions, generating $123 million in annual tax revenue for the City of Philadelphia and $396 million in state tax revenues for the four states touching the Greater Philadelphia region.

The report shows that the benefits of this significant center of economic activity are shared equitably by local residents and firms, and by employees of color and disadvantaged business enterprises. Additionally, the airport’s extensive national and international network of air service connections through PHL allows regional residents to easily access destinations, saving them on travel time and costs.

 

What is the best decision you’ve made in the nearly four years you’ve been CEO?

“Commissioning an Economic Impact Study two years ago was one of the most meaningful decisions I’ve made so far. The study breaks down the airport’s economic impact by state and county, which enables us to better communicate with stakeholders about how important they are to us, and how much we contribute to them. I’ve taken that study on the road to try and push out these local messages, and in doing so we have forged new relationships and reinforced existing ones. For example, we now have stronger relationships with all of the Chambers of Commerce in our catchment area, including South Jersey, New Castle County in Delaware, Montgomery County, Bucks County, Delaware County, Chester County, Northeast Philadelphia and beyond.”

Airport CEO Chellie Cameron
Philadelphia Business Journal
December 5, 2019

The Economic Case for Increased State Investment in Health and Social Services in Delaware

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The Ability Network of Delaware (A.N.D.) and its 39 member organizations provide vital services to members of the disability community, including those with mental health issues, physical disabilities, and intellectual disabilities. ESI was retained by A.N.D. to demonstrate the economic, community, and social return generated by State investment in the services provided by A.N.D. and its member organizations. This return derives from the multiplier effect of State dollars invested in such services, from cost savings and quality enhancements via reducing employee turnover, and from the larger financial and reputational costs avoided by adequate funding of those services, as well as from the economic contribution to the state that is made by participants of members’ workforce programs.

Due to the fact that the social and financial challenges facing the disabled community in Delaware are great, adequate funding of services provides a direct benefit to those served by A.N.D. members. These interventions also have larger impacts that benefit the state economy as a whole, and these additional benefits warrant further articulation. This report looks at four different aspects of economic impact:

  • Estimating the overall economic impact of the annual operations of A.N.D.’s member organizations, exploring both how State investments leverage other dollars and how operating dollars spent support a wide range of economic activity throughout the state.
  • Showing how uncompetitive wages in this field are relative to other job opportunities, and how costly the resulting employee turnover is to operating budgets and service quality.
  • Demonstrating that the cost of proactive social service provision is dwarfed by the financial and reputational cost borne within the state when services are underfunded.
  • Providing an illustrative example of the economic impact of job training and placement for the intellectually and developmentally disabled.

The State of the Kitchen Incubator Industry in the US: An Industry Update 2020

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In conjunction with Catharine Street Consulting, The Food Corridor, and Urbane Development, Econsult Solutions is proud to announce the release of its 3rd national survey of the kitchen incubator industry in the US. The state of shared-use food manufacturing activity has grown tremendously and evolved significantly since the first report in 2013, due to a confluence of forces, including:

  1. Stricter food regulations have increased the entry cost for commercial-grade food production, making more desirable the fractional ownership model seen in many other facets of the sharing economy
  2. Kitchen incubators represent the intersection of the growing popularity of a number of contemporary movements, such as entrepreneurship, the local craft economy, and artisanal food production
  3. Food is increasingly seen as an issue through which to pursue wellness, social justice, and equitable economic development

This report is expected to be widely utilized by individual participants and industry advocates, as was the case with the previous two reports in 2013 and 2016, as it uses an extensive survey of practitioners around the country to provide invaluable information on the state of the kitchen incubator industry in the US and its evolution over time on key operational metrics such as square footage, staffing, and equipment/services offered. The 2020 report methodology differs from the 2013 and 2016 reports, as outreach was done extensively to a broad range of shared-use food manufacturing facilities, which some of these facilities may not identify themselves as incubators. This revealed richer perspectives, which helped to inform the latter half of the report. The 2020 report also delves more deeply into industry trends and explores what might be next.  Some key takeaways:

  1. While the industry has come a long way in a short time, it has yet to formalize, and so missing standards and inconsistent practices create a perception of uncertainty, which yields reduced monetary and programming support.
  2. Lack of data, particularly in measuring the extent to which work is advancing economic inclusion, limits the case for funding.
  3. Both facility operators and individual users demand more support resources. Operators seek support with evidence-based entrepreneurial programming and development.  Food entrepreneurs desire distribution/logistics support, access to trained labor, affordable sourcing, and technical assistance around branding/sales.
  4. Lack of access to working capital is a major barrier for both facility operators and member businesses in getting off the ground and in achieving growth aspirations.

Year in Review 2019

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It has been a busy year for Econsult Solutions. We are grateful for our staff, senior advisors, and project partners who have made 2019 one of our best. This edition of ESI’s Present Value features a review of the highlights in the firm’s following practice areas: Economic Development, Higher Education, Transportation, Public Policy and Finance, Strategic Initiatives, and Thought Leadership. This occasion gives us the opportunity to observe how ESI has expanded in scope, impact, and geographic footprint. We are proud to provide a growing roster of clients with strategies and insights to meet their goals and improve their businesses and communities.

Economic Development

 

NYC’s Nightlife Economy

The first-ever impact analysis of New York City’s nightlife economy was released this year, completed by Econsult Solutions in partnership North Highland and Urbane Development. Commissioned by the Mayor’s Office of Media and Entertainment, the report provides case studies exemplifying the nightlife economy within each of the five NYC boroughs as well as detailed analysis of:

  • The direct impact of NYC’s nightlife economy with historic trends across subsectors and geographies.
  • The total economic impact of NYC’s nightlife economy, including indirect, induced, and ancillary spending, as well as fiscal impact.
  • The distribution of nightlife establishments and venues using geospatial data visualization to model historic taxi/Uber/Lyft trip demand during key nightlife hours.

In total, we found that the NYC nightlife economy has a $35 billion annual impact. What’s nightlife worth in your city? We can help you find out.

The State of North Broad 2019

Philadelphia is our home and we are proud to provide support to Special Service District, The North Broad Renaissance. ESI President Stephen P. Mullin serves on the board of directors integrating his expertise as the organization strengthens the North Broad Street corridor. One of Philadelphia’s most prominent thoroughfares, it supports neighborhoods, businesses, and institutions. North Broad’s entertainment, retail, and job center assets are expanding, bringing renewed energy to this important area of the city. North Broad Renaissance’s report, The State of North Broad 2019 is the stakeholder’s guide to understanding how to take full advantage of community and economic development opportunities to improve neighborhoods for residents and businesses.

Fused with this effort, in 2019 we guided People for People, Inc., a North Broad St. community services anchor founded by the Reverend Herbert H. Lusk, II, through an RFP process that will leverage their assets to enhance opportunities in the corridor. We are also active with specific development projects along N. Broad Street, we work with EB Realty Management Corp., and Temple University, and others.

Opportunity Zone Consulting

Econsult Solutions provided Opportunity Zone Advisory Services to the City of Wilmington, DE, and the City of Chester, PA which have Federally Designated Opportunity Zones.

ESI Directors Brittany Forman and Dan Connelly gave presentations to public officials throughout the year, and were expert panelists at several real estate development and investment forums.

Economic Impact Studies  Throughout 2019, we also provided Economic Impact Studies for more than twenty of Philadelphia’s anchor institutions and organizations, including: the Franklin Institute, Old City District, SBN’s Green City Clean Waters program, the Kimmel Center, Philadelphia Film Society, the Greater Philadelphia Film Office, Philadelphia CraftNow, and we’ve started a project with the Philadelphia Free Library with J2/ExploreExit Design. Add to that the Pennsylvania Economic Development Corporation; Chester County’s Protected Open Space; and the Delaware River Watershed segment of the East Coast Greenway, to name a few.

Higher Education

 

The Economic and Social Impact of Tulane University

Tulane University is a top-ranked research and higher education institution, founded on a mission that emphasizes integrating education and research with intellectual pursuits and community-based initiatives.

A Force for Good at the Local, Regional, and Global Levels: The Economic and Social Impact of Tulane University, the report summarizing our analysis and findings articulates the University’s impact in terms of economic output, jobs created, and tax revenues, generated from Tulane’s annual operations, large-scale capital projects, and visitors. Also highlighted in the report is Tulane University’s role as an anchor institution in New Orleans and the state of Louisiana, extending its values and mission far beyond the classroom resulting in broader societal benefits, often enhancing the quality of life for local and regional residents.

campus philly reportPhiladelphia Renaissance: College Student Retention Drives Growth in the City and Region

Campus Philly knew it was on to something big, but needed objective research and analysis to lean on in telling their story. The Philadelphia region’s young college-degreed population has steadily grown. And with top-notch institutions of higher learning located here, it can be said with numbers to back-up that talent retention is going strong. While the general population has grown at a rate of 4%, the rate growth is 115% for young adults with college degrees. For our report to Campus Philly, we analyzed data from a variety of sources to measure growth in this population cohort, including Linked In’s Career Insights platform.

Solutions for Universities and Hospitals  Over the years we have provided Solutions for Universities and Hospitals, and 2019 was no exception. We also helped Villanova University demonstrate it’s social and economic impact, the University of Wisconsin Athletics show the positive impacts of its events and programs, as well as Simpson University, and many more.

Transportation

 

SEPTA: A Value Proposition for Philadelphians

Do Philadelphian’s value convenient transit? Our analysis demonstrates a strong correlation between property value premiums and proximity to Southeastern Pennsylvania Transportation Authority stations and routes. And, higher property values increase taxable values, to the tune of a combined $233 million in annual property tax revenue for jurisdictions and school districts of the SEPTA service region.

Our report to SEPTA summarizes the agency’s property value impacts region-wide. We also delivered an interactive tool that allows the user to easily see where and by how much property value premiums are realized. The ESI team did so by developing data visualization functionality that the transit authority has incorporated into its web platform.

economic impact port authority of allegheny countyThe Economic Impact of the Port Authority of Allegheny County

Our report to the Port Authority of Allegheny County, PAAC, the greater Pittsburgh, Pennsylvania regional public transportation provider, measured the total economic impacts of the agency’s services. We analyzed PAAC as a significant regional employer, purchaser of goods and services, and tax revenue generator for the state of Pennsylvania and a multitude of local government and school district entities.

Further, our report to the transit authority demonstrates the efficiencies supported by the service provider. Through mapping and analysis of housing and demographic data, we illustrate the density of employment nodes, and workforce access gained through provision of convenient and efficient transportation services. The analysis promotes the Pittsburgh region’s competitive advantage, and shows how PAAC’s investments help shape regional development patterns, and enhance property values.

PATCO: BUILD Grant Recipient

Port Authority Transit Corporation, PATCO, was successful in their bid to receive federal funding from the USDOT Better Utilizing Investments to Leverage Development (BUILD) program. The funds will enable the reopening of the Historic Franklin Square station at 7th and Race Streets in Philadelphia. Following needed renovations, the station will reopen in 2023 after having been closed for decades. The reopening of the station allows renewed commuter access from New Jersey into Center City. We are proud to have assisted PATCO!

Solutions for Transportation  Econsult Solutions Transportation practice is keenly focused on the economic impacts of modes of transportation with an eye to the community impacts as well. We completed a property value analysis for Montgomery County, MD’s Bus Rapid Transit, Congestion Impact analysis for SEPTA, Projects of Regional Significance analysis for SEPTA, and Autonomous Vehicles Readiness Index with KPMG. Look for more to come in 2020.

Public Policy and Finance

 

PA DCED Act 47 Recovery and Early Intervention

Econsult Solutions, together with McNees, Wallace, & Nurick, LLC, and SRW Strategies developed an Early Intervention Program for the Borough of Pottstown under PA DCED Act 47, which includes a Financial Conditions and Trends analysis, and Management Audit of borough departments. Our report to Pottstown includes over fifty recommendations addressing every aspect of government operations.

ESI and McNees, Wallace, & Nurick, LLC continue to serve as PA DCED’s Act 47 financial recovery coordinator for the City of Chester and the Borough of Colwyn. Our team works with officials, employees, and community stakeholders of these jurisdictions in developing comprehensive recovery plans that address all areas of municipal operations with a goal to aid each in returning to self-governance.

Congratulations to our clients who were 2019 RACP funding awardees!

2019 was a banner year for Econsult Solutions’ RACP clients! Eighteen were awarded PA Redevelopment Assistance Capital Program grants. We are proud to be a part of their success and applaud their impacts on the communities where they invest.

  • Leopard Real Estate and Kassis Ventures – Proto Brewery Hotel – $1.0M
  • University of Pennsylvania – Pennovation Works – $1.5M
  • The Williams Group and Pride Enterprises – Cobbs Creek Commons – $1.5M
  • Allegheny West Foundation – 22nd Street Commercial and Community Development – $1M
  • Esperanza Health – Community Medical Care – Phase 2 – $500K
  • Esperanza Health – Wellness Campus – Esperanza Health II – $500K
  • Philadelphia Bar Foundation – Equal Justice Center II – $1M
  • The Mann Center – $1.5M
  • Pennsylvania Ballet Association – $1.5M
  • United Lutheran Seminary – Redevelopment and Expansion – $500K
  • Schuylkill River Development Corporation – Christian to Crescent Trail – $1.48M
  • Hunt Companies – Sharswood Phase II – $750K
  • Community College of Philadelphia – West Philadelphia Expansion – $2M
  • Philadelphia Freedom Valley YMCA, Willow Grove – new 100,000 s.f. facility/wellness center – $250K
  • Pennridge Development, Bucks County – mixed-use development – $2M
  • King of Prussia Business Improvement District – linear park – $1M
  • SORA West – redevelopment for AmerisourceBergen – $2M
  • Kimmel Center – Merriam Theater renovations – $4M

Strategic Initiatives: US-China Policy Research

 

Strategic Initiative: Our First Year Research Partnership with Beijing-Based Think Tank ANBOUND

Our research partnership with Beijing-based, independent Think Tank ANBOUND began late last year with a few early morning (for us) late evening (for them) telephone conferences. The relationship grew this year as we completed a few articles together for Present Value, the ESI blog, shared Anbound’s insights on Chinese and world economics through our monthly newsletter and social media, and explored a western market for China Observation Anbound’s newsletter. ANBOUND also joined the research coalition for our smart city thought leadership research study Building a Hyperconnected City.

Last month capped an active year with Dr. Richard Voith giving a keynote address during Anbound’s inaugural Pedestrian Oriented Development Forum in Chengdu, China. For a recap of the forum and all our Anbound news, visit our webpage devoted to this strategic initiative.

Thought Leadership: ESI ThoughtLab

 

Building a Hyperconnected City

The release of Building a Hyperconnected City, the second in our smart cities series completed in conjunction with ESI ThoughtLab, our thought leadership arm, sponsored by top-tier firms and research institutions, took place at the Smart City Expo World Congress in Barcelona, Spain last month. The culmination of nine months of surveys, investigation, and interviews, our analysis indicates that moving toward hyperconnectivity translates to a $60 billion return on investment worldwide.

A visit to the Building a Hyperconnected City microsite, which encapsulates all components of the project, provides our research findings in a multi-platform format. Here you will find the full report ebook, an interactive data navigator, case studies, articles, and insights from smart city and industry leaders.

Stay tuned to see what we have in store for the next thought leadership investigation into smart cities.

Cognizant: Jobs of the Future Index

What are the jobs of the future? Technologies solutions giant Cognizant, which is at the forefront of the digital revolution, has engaged ESI ThoughtLab to regularly conduct a survey and analysis for their quarterly workforce index. Tracking the jobs of the future in the age of the algorithm is essential for business planning, and for educators who are preparing the future workforce.

ESI ThoughtLab,  Econsult Solutions’ thought leadership arm, continues to provide global corporations with fresh thinking to stay ahead of the curve. And, on the heels of Building a Hyperconnected City, the research endeavor Driving Cybersecurity Performance has begun, set for a 2020 Q2 launch.

This list touches on some of the highlights. A perusal of the Our Impact section of the Econsult Solutions website will show the breadth and depth of the work we complete for our clients. We are looking forward to a busy 2020!

Market Analysis of the Sharswood Blumberg Housing Redevelopment

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The Philadelphia Housing Authority (PHA) and Hunt-Pennrose Sharswood, LLC  are redeveloping 645 housing units in the Sharswood Choice Neighborhood of Philadelphia. As part of the redevelopment process, Hunt-Pennrose Sharswood, LLC retained ESI to complete a market study that examines the unique opportunities and challenges of the Choice Neighborhood, PHA’s mission to provide safe and quality affordable housing, and leverages the city’s population resurgence and the subsequent capital investment in new residential, office, retail, and recreation development.