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Chemung County is bouncing back

Major job losses in 1999 from Adtranz, Sysco and others are being offset by fast growers.

By Al Levin
The Business Record
March 1, 2000

With giant Corning Inc., the world’s leading fiber optic company virtually on its doorstep, Chemung County’s economy has consistently been one of the fastest growing in the Upstate region for the past several years.

Then 1999 brought a string of bad breaks. "We lost several large businesses — ADTranz, Sysco Foods, Artistic Greeting, and had layoffs at Hardinge and Toshiba," reports George Miner, president of Southern Tier Economic Growth (STEG), the public/private partnership that spearheads economic development in Chemung County.

ADTranz was unsuccessful in securing government contracts for rail cars and closed up shop causing the loss of about 500 jobs. In mid-year 1999, another 270 jobs were lost when Sysco opted to close in Chemung County and divided its operations between Syracuse and Harrisburg, PA. Artistic Greetings was acquired and subsequently moved out of town by its new Minnesota-headquartered owners causing the loss of another 325 jobs.

For a small county like Chemung with a population of a little less than 100,000 and non-agricultural employment of roughly 44,000, that’s a significant downturn.

Uncharacteristically, employment in Chemung County fell by 1.5 percent during 1999 while the rate of unemployment, which dropped to a record low of 3.7 percent in 1998, jumped to 4.8 percent in 1999.

Some 2,000 workers were "released into the 1999/2000 labor market by the closings and cutbacks at Hardinge and Toshiba," Miner says.

But the downturn appears to be little more that a momentary pause as other manufacturers in the area continue to thrive, adding "30 to 50 to 150 jobs at a time," according to Miner.

Some examples he cited include Anchor Glass which added 60 people, Hilliard which grew its employment by 35 and Emhart Powers, which closed a Connecticut operation and brought 25 jobs to its Elmira facility.

Plus, Miner reports a recent shift toward white collar and retail development in the traditionally manufacturing-heavy community, commenting, "It’s healthy to diversify."

Chemung County’s economy is resilient. Sales tax revenue rose 6.9 percent during 1999 fueled by the county’s expansive retail sector while the residential real estate market continued to get stronger.

Between 1997 and 1999, the number of single family homes sold increased by 13 percent, and by 20.4 percent between 1998 and 1999. On the retail front, the town of Big Flats is a growing retail hub that draws shoppers from five surrounding counties and Pennsylvania’s Northern Tier.

Looking ahead, Chemung County Executive Tom Trantor declares: "In Big Flats, we will see the opening of another chain restaurant as well as a big name electronic retailer, the opening of Michaels Arts and Crafts, a new Chemung Canal Bank & Trust Company branch," plus an expanded and renovated office building adjacent to the back of Arnot Mall.

Chemung County’s growth in sales tax revenue contributes heavily to the fact that its full value tax rate on real estate is the lowest in the Southern Tier. The favorable tax structure is a significant competitive advantage in the region.

In addition, Chemung County is proving to be fertile ground for "back room" operations, according to Miner of STEG, due to the abundance of skilled people seeking new jobs coupled with the relatively low cost of office space in the area.

About 900 of the people suddenly unemployed had worked in customer service positions. Meanwhile Class A office space in the city of Elmira rents for no more than $14 per square foot with property owners picking up most common area expenses.

Furthermore, the city is a state-designated Economic Development Zone offering the incentives of wage and tax credits and utility discounts to expanding businesses. Those benefits helped STEG entice Travelers Insurance to choose Elmira as the site of a new service center to support its network of independent insurance agents.

Early last year, Travelers employed just 60 people in Elmira and announced that its workforce would decline in the city. "But STEG negotiated a project which encouraged Travelers to select Elmira for a new business they were starting resulting in the redevelopment of the Eastowne Mall into professional offices and the creation of 200 new jobs," Miner says.

"Because of the high level of skills required and the grueling training requirements," Miner continued, "Mary Swan, director of the Travelers Service Center, expected employee attrition to be 20 to 30 percent. Instead, the company found it to be below 10 percent."

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