Pennsylvania’s top economic development official came to Lititz in July 2015 to tour one of the borough’s homegrown manufacturers and pitch the state’s plans to help companies like it grow.
Dennis Davin, secretary of the Pennsylvania Department of Community and Economic Development (DCED), visited Versatek Enterprises LLC on July 29, 2015, as part of his statewide “Jobs That Pay” tour. He was joined by state Sen. Ryan Aument, Economic Development Company of Lancaster County President Lisa Riggs and Versatek President and CEO Earl Furman.
A Lititz manufacturer
Versatek is a Lititz-based manufacturer of custom product displays, store fixtures, cabinets, parts and assemblies. Its customers are largely in the convenience store and entertainment industries, two sectors where display design can make a real difference to sales.
During the visit, Furman walked the group through the production floor and described how the company had grown.
“Over the past 17 years, Versatek has grown from a small start-up to a vibrant part of the Lancaster County manufacturing sector,” Furman said. He credited part of that success to state financing. “Our growth and success was possible in part to state financing through Small Business First Fund loans and the capable assistance of the Economic Development Company of Lancaster County staff.”
The budget pitch
Davin used the stop to promote then-Gov. Tom Wolf’s 2015-16 budget proposal, which was still being debated in Harrisburg.
“Governor Wolf is providing unrivaled support to our manufacturers and small businesses,” Davin said. “His budget provides critical access to capital for businesses, paving the way for more companies like Versatek to continue to thrive.”
The centerpiece was a plan to put $100 million into the Pennsylvania Industrial Development Authority (PIDA), the state’s low-interest loan program for businesses. The money would come from a proposed severance tax on natural gas drilling.
According to DCED, the infusion was meant to make up for a $180 million transfer out of the Small Business First Fund and the Machinery and Equipment Loan Fund in the prior year’s budget. Officials described a revamped PIDA as a potential “powerhouse” tool for job creators.
The proposal also included a $5 million manufacturing tax credit. Companies that increased their annual taxable payroll by at least $1 million over four quarters could receive credits of up to 5 percent of the new taxable payroll, with the goal of encouraging good-paying, middle-class jobs.
Local partners
Riggs said the visit highlighted the kind of company that anchors the county’s economy.
“We are pleased to have Secretary Davin visit Lancaster County and specifically Versatek in Lititz, one of the progressive manufacturing businesses that help to form the foundation for our diverse economy,” she said. “We have developed a strong relationship with Versatek over the years on numerous projects as they have grown their business.”
The Economic Development Company of Lancaster County works with local employers on financing, site selection and expansion projects, often serving as the bridge between companies and state programs such as PIDA and Small Business First.
Context
Manufacturing has long been a pillar of the Lititz-area economy, from food production to stage and event technology to fabrication shops like Versatek. State officials in 2015 were looking for examples of small and mid-sized manufacturers that had used public financing to grow, and Versatek’s story fit that message.
The 2015-16 state budget became one of the longest impasses in Pennsylvania history, and the severance tax at the center of the PIDA proposal was not enacted that year. Still, the visit gave a Lititz company a moment in the statewide spotlight and a chance to make the case for programs that had helped it expand.
More information on the state’s jobs initiatives was posted at pa.gov at the time of the tour.
This story was originally published on LititzDailyNews.com in July 2015 and has been updated for our archive.