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PA’s Permitting Process ‘Pain in the A**,’ Local Businesses Say

It is not a matter of if but when Pennsylvania moves toward permitting reform, according to Harrisburg insiders. Still, industry groups and business owners insist, time is of the essence.

Building A Better America, a campaign in support of permitting reform, recently hosted area legislators, labor leaders, and business owners for talks on the subject. All agreed government needs to do a better job of helping businesses and workers by speeding processes and cutting red tape.

“This is the biggest pain in the a** going right now, in my opinion,” said Rob Buckley, president of Buckley & Company, Inc., a family-owned construction company founded in 1928. “We have jobs, we have opportunities, but that opportunity only lasts so long, and next thing you know, it’ll go somewhere else.”

The Pennsylvania Chamber of Business and Industry can relate.

In 2022, U.S. Steel built a $3 billion investment with 900 good-paying jobs with six-figure salaries a year in Arkansas. Pennsylvania wanted the investment, but the permitting system was too big a factor. In fact, when then-Gov. Asa Hutchinson (R-Ark.) announced U.S. Steel’s decision to come to his state, Hutchinson said it would move into the building before it would even get permitted in Pennsylvania. The situation was brought up in the Building A Better America panel discussion, just as it was during a recent press conference featuring the Pennsylvania Chamber of Business and Industry held with legislators and industry representatives.

Joseph Szafran, executive director of Lower Bucks Chamber of Commerce, wants to see permitting reform to help the Delaware Valley region.

“Bucks County is prime for economic growth,” said Szafran. “There’s construction, whether it is roads or new businesses, and items like permitting slowdowns and the implications they have to that economic growth, are, you know, endless.”

Gov. Josh Shapiro (D) appears to be on board with the idea of permitting reform. In March, he did not mince words when he told legislators that “our licensing and permitting process takes too damn long.” Shapiro went on to say that “bureaucratic delays and inefficiencies” make life difficult for everyone from barbers to nurses and the people involved in infrastructure projects.

“We’ve been held back,” said Shapiro. “I say no longer.”

Shapiro has since issued executive orders to try to make things better for professionals and industries. In July, following the partial collapse of Interstate 95, Shapiro cut red tape to expedite the rebuilding process. The damaged section of the interstate reopened 12 days later. Buckley was part of that rebuild.

Republican legislators are ready and willing to work with their colleagues from across the aisle. State Sen. Frank Farry (R-Bucks), who worked as a firefighter while running for office, said if government fought fires the way it handles permits and other processes, not only would a house burn but maybe an entire block. State Rep. Martina White (R-Philadelphia) agreed, saying time is money, and that is not something businesses have a lot of to throw around.

“Companies want to come here. But then they see the potential issues with our regulatory process or our permitting approval processes,” said White. “If the permits are not approved in a timely manner, those dollars are going elsewhere.”

Buckley put it this way: Stop playing kick the can down the road and work with guys like him who are in it to win it.

“When I bid a job, it’s money that is coming out of me, and I kind of like my house, but if you tell the people that are in the permit process, ‘either get this thing approved or you’re going to lose your house,’ I’ll bet there’s a little more motivation to get that done,” said Buckley. “It’s good for the economy, it’s good for the industry, it’s good for the union, it’s good for the people in this area of Philadelphia where we’re trying to attract businesses.”

Speaking of unions, Jim Snell, Business Manager at Steamfitters UA Local 420, was also a participant at the Building A Better America panel discussion. Snell said the issue is very important to Local 420 and the Philadelphia building trades. Just as legislators serve citizens, Snell said he is there to serve members and their families, some of which have seen projects go to other states.

“My members should be on that project working, but they’re not because of red tape,” said Snell.

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DelVal Workers Slowly Returning to the Office

“The pandemic is over,” President Joe Biden told 60 Minutes last week — but do Delaware Valley workers agree?

Biden has stepped up his advocacy for employees to return to their normal work routines, sending  a letter to federal workers urging them to show Americans the time is right to return to work as COVID cases decline.

“It’s time for Americans to get back to work and fill our great downtowns again,” Biden said. “People working from home can feel safe to begin to return to the office. We’re doing that here in the federal government. The vast majority of federal workers will once again work in person. The workplace enables a sense of teamwork and belonging.”

At many companies, hybrid work settings have become the norm in a post-pandemic world. Hybrid work is a flexible working model where employees work partly in the physical workplace and partly remotely – at home or from another workspace.

Here in the Delaware Valley, Chris Yangello, a broker at Capital Commercial Real Estate Group, in King of Prussia says that “business is slow but steady, and anything from where we were before the pandemic would be an improvement. We are getting more and more calls and inquiries for office space recently.”

“Basic signs are going up. But business employers must tread carefully.  Offices have been the weakest area of growth in the past. But this could change dramatically. In light of the pandemic, this type of business landscape has been forever changed,” Yangello said.

But it’s hardly pre-COVID business as usual.

Bernard Dagenais, President & CEO of the 850-member Mainline Chamber of Commerce in Wayne, says his employees work two to three days per week at the chamber office.

“It is a matter of culture vs. choice,” said Dagenais. “The trend throughout the Delaware Valley region is hybrid, with some segmenting members requiring in-person, and some members only requiring two to three days per week. Larger companies, culturally, are requiring four to five days per week. Some embrace remote work. Some incentivize to compel workers to stay in the office.”

Not everyone is buying into the remote work model. Celebrity CEO Elon Musk of Tesla (and perhaps, eventually, Twitter) issued a strict return-to-office edict this spring, informing employees on May 31 that they would need to “spend a minimum of forty hours in the office per week.” Return-to-office advocates argue something is lost by not being in person, like team building.  It is harder to assure a strong company culture when people work at home. Member companies are encouraging younger workers to work in person to develop needed interaction skills.

Kevin McCann, a five-year business owner of the SearchStone Partners recruiting firm in Doylestown, with 28 years specializing in the food, beverage, and flavors industry, says that the “trend over the past year is to get workers back to the office quicker.”

“But there is a blend – some have gone back, and some are more productive at home,” he said. “Some corporate cultures have suffered because workers have lost their teamwork ability – a big tradeoff cost.  Over the past two years, sales and corporate operations workers have worked from home, while marketing and research & development have worked from the office. Hybrid test kitchens have also worked from home.”

“Productivity in this industry may not have actually suffered from being at home. It could be a matter of enticement, although one must draw the line somewhere,”  he said.

Overall, the general sentiment within the industry is to get back to work. However, some who’ve been working from home say they are not going back.

Kimberly Tinari, president of Rowland Personnel in Newtown Square, which serves law, engineering, manufacturing, and industrial firms in Montgomery, Delaware, and Chester Counties and Philadelphia, says “In general, employers want workers back in the office.”

“They were amenable to workers working at home at the start of the pandemic. Over this period of time since the pandemic, there has been a noticeable productivity drop. Employers, therefore, want white-collar workers back into the office, although candidates themselves want remote work to stay at home,” she said.

“The pendulum will eventually swing back,” Tinari said. “Although right now this trend of workers wanting to stay at home is unsustainable. Younger workers will have to change their attitude about staying at home. They simply can’t hold out over the long run.”

Employers are trying to get back to pre-pandemic levels, and are seeking to snatch up new hires or experienced workers right away.

“But there is a disconnect between employers and candidates on the work-at-home issue,” she says. “This gap needs to be closed, to create a coming together. I am optimistic this will happen.”

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DelVal Dems Have Holiday Season Headache as Inflation Hits 39-Year High

Delaware Valley Democrats, some already facing a tough electoral environment next year, got hit with more bad news Friday: Inflation reached a 39-year high, and voters believe the federal spending in Washington is part of the problem.

Friday morning, the Labor Department reported the consumer-price index jumped to its highest rate in 39 years, rising to 6.8 percent in November. It is the sixth consecutive month inflation was higher than 5 percent. That is a blow to Democrats like U.S. Reps. Chrissy Houlahan and Madeleine Dean, who voted for trillions in new federal spending and likely face serious challenges in the 2022 midterms.

Hours later, a new Congressional Budget Office analysis of the Biden administration’s Build Back Better spending plan found the bill would add $2.8 trillion more to the national debt than originally projected. Despite claims by President Joe Biden and Dean that the CBO found the BBB spending plan is “fully paid for,” the agency has always said the proposal will add between $160 billion and $367 billion to the deficit.

“This holiday season Pennsylvania families are having to empty their wallets for gas, groceries, and gifts—and some of them can’t afford all three. Prices have skyrocketed to a 39-year high and consumer prices in the Northeast are up a costly 6 percent,” said Pennsylvania Republican Party Chairman Lawrence Tabas. “Next November, Pennsylvania Democrats will be held responsible for Joe Biden’s reckless policies, which are hurting Main Street businesses, eating up workers’ gains, and crippling our economy.”

The cost of a frozen turkey for this past Thanksgiving was up 20 percent from last year, and the entire meal cost the average family 10 percent more.

Sen. Pat Toomey (R-Pa.) said, “Today’s jaw-dropping inflation report should alarm every single American, but especially policymakers. Hardworking American families are suffering as a direct result of the Biden administration’s reckless borrowing and spending and anti-energy policies. If the message wasn’t clear enough before, it’s crystal clear now. Democrats should immediately halt plans to advance their nearly $5 trillion spending spree and the Fed should quickly normalize monetary policy before it falls further behind the curve.”

Guy Ciarrocchi, a Republican running for governor who is on leave from his job as president of the Chester County Chamber of Commerce, said, “Inflation is the cruelest of all taxes. It eats away at a family’s savings each week, each month. The good news is that bad government policies created this; so good policies can fix it. Step one and two: Time for almost everyone to get back to work and let’s get Pennsylvania energy out of the ground.”

Some Democrats are pushing back and claiming costs are actually going down in December and contending their policies are working so the Christmas ham won’t be as pricey as the Thanksgiving gobbler.

“As we head into the holiday season, I recognize that the pressure of increased costs is weighing heavily on many Americans,” said Rep. Mary Gay Scanlon (D-Delaware Co.). “My colleagues and I are working hand-in-hand with the Biden administration to get people back to work, address supply chain issues, and lower prices — and there is good news on those fronts.

“Americans, on average, have about $100 more in their pockets each month than they did last year, even after adjusting for inflation, thanks to rising wages and the Child Tax Credit passed as part of the American Rescue Plan,” said Scanlon. “In December, costs have also been falling for gas, used cars, and other goods that are driving inflation; these changes aren’t reflected in the latest Consumer Price Index report. I know the past several months have been tough, but we’re moving in the right direction.”

But consumers and business owners are holding onto their wallets as polls consistently show voters believe federal spending is making inflation worse, not better.

Maryann Brown, a pharmacist living in Warminster, said gas prices are down a bit, but other items are up.

“Grocery prices are high so I shop at Aldi or a grocery outlet,” said Brown. “Electricity is going up so I turn off all unused lights. Stamps are up, so I’m sending out fewer cards this year. I use coupons like at Old Navy or Kohl’s ‘cash’ since the prices are up.”

Wendy Klinghoffer, executive director of the Eastern Montgomery County Chamber of Commerce, said, “Obviously, it’s a major issue because the cost of goods and services went up for both purchasing as well as personnel.”

“For small businesses in particular, this is problematic,” said Klinghoffer. While business owners are reluctant to pass costs along to consumers “at some point they have to in order to stay in business. They have to recoup their costs.”

Meanwhile, the restaurant sector was particularly hard hit during the pandemic shutdowns and is still struggling with food and wages now increasing due to inflation, she said.

Pennsylvania Chamber of Business and Industry President and CEO Gene Barr noted inflation is the highest since 1982.

“Our economy is already overwhelmed with supply-chain issues, a workforce shortage, and an increase in consumer demand, particularly during the holiday season,” Barr said. “A high inflation rate hampers economic recovery and can be particularly painful on small businesses as they are less able to withstand challenges to their financial goals. As products and services get more expensive, there is no doubt that consumption will continue to fall.”

Barr called on Congress to drop the pending tax and reconciliation bill that would add “another $150 billion in transfer payments and tax cuts, plus additional spending will be a recipe for disaster for more inflation over the next year. We must continue to prioritize rebuilding our economy, and this bill is a roadblock to long-term economic recovery.”

 

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