ECONOMIC FORECAST

2013
CenterState New York
Corporate Sponsors Media Sponsors

Presenting Sponsors

This year, 168 CenterState CEO members and community participants from 12 counties took part in a series of focus groups and online surveys to provide insight on the year that was, and the regional trends to watch in the year ahead. Those findings, spanning 13 sectors of our diverse economy, are outlined in the following pages along with detailed data from ManpowerGroup on industry, occupation, employment, and earnings trends through 2016. Our volunteer forecasters identified a range of trends that impacted their bottom line in 2012, and shared their expectations for 2013 everything from cautious optimism for growth, to bracing for a year of uncertainty and fiscal challenges. While many are gearing up to launch new products and services, or are expanding into global markets, others are treading carefully, concentrating on achieving greater efficiencies to remain competitive in their respective industries. Regardless of where your business or organization falls within that spectrum, I hope youll find that the 2013 CenterState CEO Economic Forecast provides a unique perspective on your sector and our region that cant be found anywhere else. I wish to thank our forecasters for their valuable insight, and our sponsors - presenting sponsors M&T Bank and Destiny USA; corporate sponsors Dermody, Burke & Brown, CPAs, LLC and Manpower Inc.; and media sponsors Clear Channel and the CNY Business Journal as well as staff who significantly contributed to this years report. I look forward to working with you as we strive for a prosperous 2013.

Robert M. Simpson President, CenterState CEO

CONTENTS Contents
CEO Forecasters Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ManpowerGroup Market Analysis of CenterState NY . . . . . . . . . . . . . . . . . . . 4 CenterState NY Export Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Agribusiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Banking, Finance & Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Construction & Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Energy & Environmental Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Government & Economic Development . . . . . . . . . . . . . . . . . . . . . . . 14 Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Higher Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Human Services, Not-for-Profits & the Arts . . . . . . . . . . . . . . . . . . . . . . 17 Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Small Business & Professional Services . . . . . . . . . . . . . . . . . . . . . . . . 19 Technology & Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Tourism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Regional Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Thank You Forecasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CEO FORECASTERS OUTLOOK CEO Forecasters Outlook

Focus groups reported the following:
2012 PERSPECTIVE
What were your business growth projections for 2012?
Significant Growth 17% 54% 25% 4% 0%

What was 2012 actually like for your organization?

Significant Growth 25% 38% 22% 14% 1%

How did your organizations growth compare with your sector peers in 2012?
Better Than 39% 55% 6%

Slight Growth
Flat Somewhat Down Significantly Down

Slight Growth
Flat Somewhat Down Significantly Down

Same As Not as Favorable

2013 OUTLOOK
What are your projections for 2013 as to:

JOB GROWTH
Decrease 4%

CAPITAL INVESTMENT
Decrease 8%

SALES/REVENUE
Decrease 2%

PROFITS
Decrease 6%

COMPANY GROWTH
Will you expand products or services?

Flat 24% Flat 46%

Increase 50%

No 24% Flat 33%

Increase 74% Increase 61% Yes 76%

Flat 45%

Increase 47%

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MARKET ANALYSIS OFAnalysis of CenterState New York Market CENTERSTATE NEW YORK
Region Info
For this analysis, the CenterState New York region is defined to be the twelve counties surrounding the Syracuse market. This area encompasses the following counties: 618,136 624,246 6,110 0.99% 78,721 $19.31 Cayuga Cortland Herkimer Jefferson Lewis Madison Oneida Onondaga Oswego St. Lawrence Seneca Tompkins

Introduction
Every market is unique in terms of its occupations, industries and demographics. As such, each one of these factors, as well as myriad others, plays a role in determining overall growth of the market and its ability to foster current and future demand for labor. For a company or a Workforce Investment Board, knowledge of market specific indicators and trends will help in strategic decisions relating to pricing determination, recruiting initiatives and retention. The following pages are an analysis of the 12-county CenterState New York region, prepared for CenterState CEO by ManpowerGroup. The analysis incorporates size, growth and demographics figures to gauge if the greater market can sustain current or greater demand within certain occupations and industries. However, the true viability of a market involves many more variables than those presented in this document. As such, this analysis should be utilized as part of a broader discussion on how to expand skill sets within the region.

Industry Summary
Basic Information 2012 Industry Jobs 2016 Industry Jobs Total Growth Total % Growth 2012 Average Earnings per Worker 638,559 644,997 6,438 1.01% $40,213

Occupational Summary
Basic Information 2012 Occupational Jobs 2016 Occupational Jobs Total Growth Total % Growth Openings 2012 Median Hourly Earnings

Modest Job Growth Expected for Syracuse, NY MSA

According to the Manpower Employment Outlook Survey, Syracuse, NY MSA employers expect to hire at a moderate pace during Quarter 1 2013. From January to March 2013, 12% of the companies interviewed plan to hire more employees, while 7% expect to reduce staff. Another 79% expect to maintain their current workforce levels and 2% are not certain of their hiring plans. Overall, employers expect stable employment prospects, with a Net Employment Outlook* of 5%, in the first quarter of 2013. Increase Staff Levels SyrMSA Q1 2013 Q4 2012 Q1 2012 12% 18% 13% U.S. 17% 17% 14% Decrease Staff Levels SyrMSA 7% 11% 6% U.S. 8% 9% 9% Maintain Staff Levels SyrMSA 79% 68% 73% U.S. 72% 72% 70% Dont Know SyrMSA 2% 3% 8% U.S. 3% 2% 7% Net Employment Outlook SyrMSA 5% 7% 7% U.S. 9% 8% 5%

Observations
For the coming quarter, job prospects appear best in wholesale and retail trade, professional and business services, education and health services, leisure and hospitality and other services. Construction, non-durable goods manufacturing and government plan to reduce staffing levels. Hiring in durable goods manufacturing, transportation and utilities, information and financial activities is expected to remain unchanged.

*Derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.

PREPAREDCenterState CEO Prepared for FOR CENTERSTATE CEO

2012-2016 CenterState NY Industry Size and Growth
$65000 $60000 $55000 $50000 $45000 $40000 $35000 $30000 $25000 $20000 $15000 $10000 $5000 $0 -20% -10% 0% 2012 - 2016 % Growth 10% 20% Agriculture, natural resources, and mining Construction Education and health services Financial activities Government Information Leisure and hospitality Manufacturing Other services Professional and business services Trade, transportation, and utilities

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Avg Earnings per Worker

Bubble size represents 2012 jobs in each supersector

Description Agriculture, natural resources, and mining Construction Education and health services Financial activities Government Information Leisure and hospitality Manufacturing Other services Professional and business services Trade, transportation, and utilities Total

2012 Jobs 4,950 19,834 119,175 28,908 156,954 8,044 57,740 53,315 18,946 52,685 118,008 638,559

2016 Jobs 4,954 19,625 129,897 27,523 159,012 7,288 60,309 46,439 19,147 53,949 116,852 644,997

Growth 4 -209 10,722 -1,385 2,058 -756 2,569 -6,876 201 1,264 -1,156 6,438

% Growth 0% -1% 9% -5% 1% -9% 4% -13% 1% 2% -1% 1%

2012 EPW $32,549 $48,406 $42,131 $51,508 $44,009 $48,758 $14,638 $55,939 $23,841 $45,877 $34,334 $40,213

Observations
The largest industry sector in the CenterState NY region is government, with 25% of total jobs. Other large industry sectors include education and health services, and trade, transportation and utilities. The sector with the largest earnings per worker on average is manufacturing, followed by financial activities. Five industry sectors are not expected to see growth in the next four years. The largest growth is in education and health services, while overall growth in CenterState NY is at 1% and an increase of 6,438 jobs.

Source: EMSI Covered Employment - 2012.3

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MARKET ANALYSIS OFAnalysis of CenterState New York Market CENTERSTATE NEW YORK
% State Jobs

2012 CenterState NY Industrial Makeup

% Regional Jobs 30% 25% 20% 15% 10% 5% 0%

2012 Industry Supersectors

Observations
Compared to state industry jobs overall, the CenterState NY region has a higher percentage of government and manufacturing jobs, but less professional and business services, financial, and information industry jobs.

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Description Agriculture, natural resources, and mining Construction Education and health services Financial activities Government Information Leisure and hospitality Manufacturing Other services Professional and business services Trade, transportation, and utilities

2012 Regional Jobs 4,950 19,834 119,175 28,908 156,954 8,044 57,740 53,315 18,946 52,685 118,008

% Regional Jobs 0.8% 3.1% 18.7% 4.5% 24.6% 1.3% 9.0% 8.3% 3.0% 8.3% 18.5%

2012 State Jobs 27,818 300,948 1,636,965 684,791 1,508,435 247,952 789,124 456,098 327,123 1,186,661 1,507,831

% State Jobs 0.3% 3.5% 18.9% 7.9% 17.4% 2.9% 9.1% 5.3% 3.8% 13.7% 17.4%

Source: EMSI Covered Employment - 2012.3

PREPAREDCenterState CEO Prepared for FOR CENTERSTATE CEO

Industry Sector Change Summary (at 2-digit NAICS)
Regional Growth Rate State Growth Rate National Growth Rate

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5%
2012 - 2016 % Change

Observations
The CenterState NY region is projected to grow slightly slower than the nation overall, based on all industry jobs at the 2-digit NAICS level. The region is expected to grow at 1% in the next four years while jobs are expected to grow 4% nationally. The area makes up about 7.4% of state industry jobs overall, meaning that the jobs in the state are either spread out more or are concentrated in larger metros such as New York City. There are an estimated 34,569 establishments in the area, which makes up 6% of the state. As indicated below, government makes up a large portion of the industries in the area, with health care being the second largest sector (education is smaller as many of the public schools are incorporated into the government industry sector).

4% 3% 2% 1% 0%

2012 2013 2014 2015 2016

Description Regional Total State Total National Total

2012 Jobs 638,559 8,673,746 134,222,034

2016 Jobs 644,997 8,782,835 139,805,804

Change 6,438 109,089 5,583,770

% Change 1% 1% 4%

2012 Average Earnings $40,213 $61,380 $47,890

2011 Establishments 34,569 562,988 8,934,142

Industry Breakdown (at 2-digit NAICS)

NAICS Code 11 21 22 23 31-33 42 44-45 48-49 51 52 53 Description Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing 2012 Jobs 4,247 704 4,699 19,834 53,315 20,867 76,171 16,271 8,044 22,676 6,232 2016 Jobs 4,271 683 4,864 19,625 46,439 20,425 75,195 16,367 7,288 21,356 6,167 2012 Average Earnings $29,115 $53,270 $104,623 $48,406 $55,939 $54,581 $23,557 $38,521 $48,758 $56,537 $33,209

Source: EMSI Covered Employment - 2012.3

2011 Establishments 434 61 87 3,544 1,352 1,662 5,133 778 540 1,782 1,290

NAICS Code 54 55 56 61 62 71 72 81 90

Description Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support Services Educational Services (Private) Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) Government Total

2012 Jobs 24,968 4,549 23,168 33,535 85,640 7,335 50,405 18,946

2016 Jobs 26,445 4,301 23,203 35,177 94,720 8,086 52,223 19,147

2012 Average Earnings $57,311 $67,164 $29,375 $50,017 $39,043 $16,523 $14,364 $23,841 $44,009 $40,213

2011 Establishments 2,788 219 1,553 322 3,595 688 3,519 3,460 1,762 34,569

156,954 159,012 638,559 644,997

CENTERSTATE York Export Outlook CenterState New NEW YORK EXPORT OUTLOOK
Do you currently export a product or service? The Brookings Institution estimates that for every $1 billion in increased export sales, more than 5,000 jobs are created. Therefore, doubling exports in the Syracuse metro area alone, from $3.3 to $6.6 billion, offers the potential to create 18,000 net new jobs. Given this enormous potential, forecasters were asked for feedback on their exporting experiences and challenges they have faced with the export market. Our forecasters currently export products and services to more than 35 nations and regions across the globe, with many reporting this as a key factor in their plans for future growth.

No 24%

Yes 76%

Our company plans to export in 2013 after launching a new line of services.
If yes, what % of your business is in exports? Respondents 5% 6-10% 11-20% 21-30% 50% 35% 31% 7% 17% 10%

Those not currently exporting cited limited knowledge on how to expand into international markets, or were uncertain about the countries or markets that are applicable to their business. This is an indication that more education is needed in certain sectors on exporting opportunities. Twenty-nine percent of respondents who do not currently export reported being interested in learning how to take advantage of those opportunities.

Companies in the CenterState region export to:

If yes, what % of your growth do you expect to come from exports over the next 5 years? Respondents 0 5% 6-10% 11-20% 21-30% 31-40% 50% 18.5% 7% 18.5% 26% 11% 4% 15%

To achieve the We will continue to be involved regions exports with CenterState CEO discussions goals, the CenterState to target the Canadian market for Metropolitan medical tourism. Export Initiative was developed in partnership with Brookings and released in April 2012. The plan provides strategies, resources and initiatives to help companies and the region grow through increased export activity, improving regional competitiveness in the global marketplace, and attracting and retaining world-class talent to ensure long-term economic sustainability for the region.

We have exported our services, but the cost of sales and marketing (vs. the cost of U.S. sales) makes it somewhat less attractive in 2013.

CENTERSTATE CenterState New York Export Outlook NEW YORK EXPORT OUTLOOK
Forecasters reported the following observations about export trends in their sector:
Agribusiness
Farmers are looking for assistance in exporting products directly to markets, and in finding new markets for their products. Upstate farmers also need assistance in getting their products to markets in northeast coastal cities, thereby reducing imports. Currently, upstate farmers only supply about 5% of downstate food, leaving much room for growth.

Government & Economic Development

There is still a demand for improved local, state and federal programs to assist in growing exports as outlined in the CenterState Metropolitan Export Initiative.

exposure to international cultures. Foreign students used to pay 100% of their expenses and did not require financial aid. Universities now have to extend financial aid to these students, particularly when recruiting students among groups other than political and economic elites.

Tourism
Despite the regional tourism industry being one of the regions strongest exporting success stories, with ongoing potential, many businesses in the regional tourism industry do not recognize the significance of their role in exporting. Despite the importance of the Canadian marketplace, the concept of exporting being greater than the international shipping of a physical product requires more education and communication in this sector.

Health Care
Growth of medical tourism presents an opportunity for the regions health care providers. Green cleaning technology for hospitals and other institutions is in Japan, Malaysia, and India (including the India Railway). Export market growing to 50%.

Small Business & Professional Services

Despite the market opportunities abroad, businesses are often hesitant to commit to exporting due to politics and the economy.

Energy & Environmental Systems

China has flooded the global market with just about every commodity type of energy product. This means that the U.S. is most competitive with high-value, highly-specific products that are often built to customers needs, not necessarily to an export market. Countries that do embrace energy products, such as solar in Germany, are often country-specific due to national policies and tariffs, making it nearly impossible for a non-German solar company to sell to Germany. Energy products and technologies are often in highest demand in places across the globe that are not able to purchase them (e.g., tidal power generators in developing nations where villages off-the-grid need it most). This makes it difficult to export in the clean energy arena.

Technology & Communications

Companies reported plans to export services in 2013 after launching business, and others are planning to land strategic partners to sub-license or distribute products abroad. Others are open to the prospect of exploring international market, but are focusing efforts on tackling the U.S. market first. Some companies have international offices, or have plans to open new offices abroad in 2013.

We are planning to open an office in Brazil in 2013.

Transportation
Export activity remains relatively low across this sector in the region. Greatest growth opportunities are likely in Canada. Growth in distribution centers in the region is likely to be one area for expanded export activity. Canadians are driving additional passenger traffic at Syracuse Hancock International Airport. Engineering firms that serve the transportation sector are using existing clients and partners as portals to gain entrance into foreign markets.

Higher Education
Campuses are seeing an increase in international students, a source of measured, rather than fast, growth. However, institutions are feeling more pressure to attract stronger students; they cannot afford to bring students who lack adequate language skills. Attracting foreign students also requires changes in institutional operation (e.g., cannot close residence halls during breaks when international students may have nowhere to go). Colleges and universities have to become more internationalized New York attracts the second . most international students of any state in the U.S. They need to attract foreign students to better educate American students, and help them gain

We are trying to help companies start commerce with China, but people seem scared to commit due to politics and the economy.

AGRIBUSINESS Agribusiness
TRENDS IN 2012
The Northeast agriculture sector had mixed outcomes. With record grain and forage crop prices, those farmers had a great year. However, the dairy, vegetable, fruit, and livestock markets had mixed results. Weather and water dominated the sector in 2012, starting with the warmest winter in decades, followed by a very inconsistent spring which broke temperature records at both sides of the thermometer, followed by the driest and hottest summer since the mid fifties. Many farmers had to conserve resources. In the fall, it rained frequently and yearly totals were back to normal. The extreme weather has been challenging over the last few years. Many farmers and consumers are wondering if this is the new norm. Crop sales were very strong for a second year in a row, with soybeans selling in the mid teens and corn at eight dollars per bushel.

OUTLOOK FOR 2013

Opportunities
Crop sales are expected to be very strong well into 2013. Agribusiness professionals are bullish on the prospects for the industry, especially as demand for food and general ag products is strong in Asia, India and other emerging economies. Currently there is a very robust demand for yogurt, especially Greek yogurt, which is higher in protein and lower in calories. Future demand is optimistic as eating trends crave healthier products, and Europeans consume three times as much yogurt as the U.S. market. The local food movement and knowing where food is produced continues to be strong, with consumers and institutional systems, such as schools, getting involved with farm-to-table programs. They see local products as more nutritious and their participation re-invests local dollars in the community. Logistical food hubs offer potential to bring upstate products to large cities and assist in aggregating multiple products.

Photo courtesy of Owera Vineyards

Challenges
At the federal level, deficit reduction and changes to farm risk management programs may affect what products farms invest in. The 2008 Farm Bill expired in 2012, and currently there is no joint agreement on language and programs for a new bill, putting tremendous pressure on ag sectors. Labor continues to be a major issue, as domestic workers are scarce and show little interest in this sector. Many farmers are planning on retiring or transitioning their business, making it increasingly challenging for young farmers to get access to capital needed for the generational transition. NYS has implemented several programs to reduce the tax burden of the property taxes on farms. However, tax and insurance rates remain among the highest in the country. Access to credit remains an issue. Capital is available, but approval and collateral requirements remain very high. Difficulty with traditional lenders may require farmers to look to non-traditional funding mechanisms. Natural gas opportunities continue to be a complex issue confronting both rural and urban communities. The natural gas debate has become a property rights issue for farms and rural landowners. In addition, there are concerns around food production, soil and water contamination, and environmental risks. However, states such as Pennsylvania and Ohio are seeing significant economic growth from the gas and oil industries.

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BANKING, Banking, Finance & Insurance FINANCE & INSURANCE

TRENDS IN 2012
Overall, the sector only reported slight growth in 2012 with modest growth predicated on early signs of recovery from the recession and pent up demand from existing customers. Uncertainty remained the single most consistent reason for client inaction during 2012, attributed in part to the presidential election and the potential impact of health care reform. Demand was clear, but clients were unwilling to make commitments in light of this political and financial uncertainty. For larger firms, re-regulation proved to be a major factor in decision making. Many firms found that the effects of the recession forced them to consider reorganizing, re-staffing and/or reprioritizing business lines, all of which added to the pressures of doing day-to-day business. Increased pressure from competition was cited by a number of firms. Unemployment rates continued to slowly decline and the housing market showed signs of life, but business seemed stuck in retrenchment mode, waiting for something dramatic to occur as a signal that all is well going forward. Firms with larger parents saw growth swings on a national level and those who operate within a global structure saw even greater variance. In general, the larger the enterprise, the greater the difference, driven by susceptibility to external political, economic and regulatory pressures, not necessarily by the core business.

OUTLOOK FOR 2013

Opportunities
As difficult as the year looks to be, profits are expected to increase. Budgets call for growth and participating executives expressed confidence that they would be able to deliver that growth both on the top and bottom lines. The financial services environment for the coming year appears equally focused on finalizing the corrections associated with past problems and anticipating new challenges and opportunities. Most firms postulate a back to basics stance particularly when it comes to relationship management. A few see market turbulence as an opportunity to be exploited. Continued focus on doing business locally. The re-emergence of client/provider relationships as a driver of profitability is expected. Efficiently but effectively delivering a high-touch, service-oriented approach will be critical to success. A focus on earning back the trust of targeted client segments in 2013 alluding to the conventional wisdom that the financial services industry both caused and exacerbated the recession.

Challenges
Lingering effects of the recession particularly around unemployment will be the primary challenge. No reduction in competitive pressures. Strong competition will bode well for clients, but weighs heavily on the industry. Turbulent markets will keep pressure on the bottom line which comes on top of increased pressure for performance from parent organizations. The rapid changes brought on by technology will have some impact, although the lack of control stemming from fear of uncertainty particularly in regulatory environment will also play a role. Job growth is expected to be flat or down. Technology, competition, regulation and bottom line pressure will all conspire to keep employment well below historic highs. Capital investments are expected to be down. While there may be opportunity for growth by acquisition, brick and mortar expansion will be limited.

New Products & Services Expected to Expand by:

Making difficult decisions about where and how to compete, with efficiency and effectiveness key factors. Getting back to basics with products, services and relationships. Expanding offerings, hopeful that diversity will yield opportunity. Refining or implementing significant change in offering mix in order to support client acquisition and retention efforts.

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CONSTRUCTION & REAL ESTATE Construction & Real Estate

TRENDS IN 2012
As expected, there was not a significant amount of new private and public construction work in 2012; economic uncertainty prevented construction growth. Trends in housing have been positive since late 2011 and continued in 2012, with growing confidence in home buying. Buyers started moving forward without the job or economic concerns that have been evident since the fall of 2008. Lack of available capital was a challenge. The environment remained competitive, with tighter margins, fewer bidding opportunities, and difficulty getting customers to move forward with projects due to a lack of confidence. Industry regulations increased, as anticipated.

OUTLOOK FOR 2013

Opportunities
Overall climate will remain as it has been in the last two years challenging and somewhat stagnant, with the region struggling to compete for limited state dollars for public projects. Decisions on tax structures will provide businesses with predictability. Some new work will be available from Hurricane Sandy, but previously planned improvements/upgrades will be pushed off into the future, resulting in a wash. Potential for capital projects on SUNY campuses through the SUNY Construction Fund. The health care and education construction market is booming and expected to double in two to three years. New home sales should be very positive, which may move existing home values up. This will bring more homeowners back into the market. Continued corporate outsourcing for real estate services. Natural gas opportunities could present a boost to local economies and construction companies.

Challenges
Capital markets are expected to be tight. Many quotes/bids remain outstanding but customers are afraid to pull the trigger due to economic uncertainty. Lack of subsidies from New York State, and competition from other regions (e.g., Albany, Buffalo); a push for more state funds to support construction in the region is expected. Labor Law 240 & 241, pertaining to height standards; contractors have absolute liability and this impacts insurance costs. Mandated health insurance will prevent some companies from expanding. Hurricane Sandy may impact construction negatively, as getting electrical/mechanical equipment will be difficult due to the amount that must be replaced in NYC/NJ. It will also impact ability to secure skilled trades people. K-12 construction market will be negatively impacted due to school budget pressures; schools lack funds for capital projects. In the real estate market, lack of available inventory is a concern. When buyers are unable to find a home that fits their needs, they delay putting their current home on the market. Private development may slow down due to banks reluctance to lend money and developers remain unsure of the economy.

New Products & Services Expected to Expand by:

Picking up services and accounts from competitors who are going out of business. Providing more in-depth corporate real estate services.

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Photo courtesy of St. Josephs Hospital Health Center

ENERGY & ENVIRONMENTAL SYSTEMS Energy & Environmental Systems

TRENDS IN 2012
Modest growth in sales, but not in employment base. Some introduction of new products; with product and service innovation an increasingly important strategy to becoming more competitive. Capital expenditures, even those that save money and reduce electricity consumption, were met with resistance in the marketplace, attributing to a rise in software, analytics, and software-as-a-service solutions over hardware. Regulations and government incentives seemed to be in constant flux, making it very difficult to predict business models and the needs/prices for customers. Many biofuel credits evaporated, these were because of federal actions not to renew them. An on-again, off-again Wind Production Tax Credit lead to less than attractive price structures for customers.

OUTLOOK FOR 2013

Opportunities
With Hurricane Sandy and heightened sensitivity to climate change and natural disasters, off-grid solutions are an opportunity. Technologies and products that improve the resiliency of the grid, distribute power, combine heat and power technologies, and demand response products should be opportunities in 2013. Energy efficiency controls, lighting and water reclamation, and green infrastructure products are expected to be large market gainers in 2013. Aging public infrastructure (e.g., wastewater plants, government and municipal facilities, etc.) should drive adoption of energy efficiency and new clean technologies as that infrastructure is replaced.

Challenges
Green and clean tech products tend to be purchased and installed along side major capital projects such as construction of new buildings, deep retrofits, or with major public infrastructure improvements. With the global economy and housing situations still in flux, overall infrastructure investments may be limited. Job growth and profits are expected to remain relatively flat.

New Products & Services Expected to Expand by:

Finding creative ways to finance up-front costs of renewable and green technology equipment so that customers can see savings directly through their utility bills. Bundling additional services, like software reports and analytics, with clean energy hardware.

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GOVERNMENT & ECONOMIC DEVELOPMENT Government & Economic Development

TRENDS IN 2012
At the local government level, there was a challenge to find new ways to generate more revenue at home, particularly as state and federal resources diminish. New York State spent less in 2012 than 2011; there was a lack of revenue, but was able to close budget gaps. Local governments looked at more opportunities for consolidation. Empire State Development has seen an uptick in requests for assistance. Regional Economic Development Council funding has been successful; cranes are in the air around the region. State funding is now used to close the gap on a project as the last money in, rather than the first. At the federal level, concern over sequestration and uncertainty of continuing resolutions has held back business growth. Earmarks are gone from the appropriation process, so there has been a shift in focus to competitive grants.

OUTLOOK FOR 2013

Opportunities
Regional Economic Development Council funding continues to strengthen core industries, coalesce community leadership, and aid in key projects. Finding a balance between attracting new talent and improving existing talent. Growing exports opportunities, particularly given the potential of the CNY Inland Port, the Port of Oswego, and additional transportation infrastructure in the region. Rebuilding from Hurricane Sandy will bring economic activity, jobs and improve utility infrastructure. The Northeast UAS Integration Research Alliances (NUAIR) regional effort to secure Federal Aviation Administration designation for an unmanned aerial systems (UAS) test site in New York holds significant potential for the region. Industry/university collaboration through assets such as the Syracuse Center of Excellence, the CNY Biotech Accelerator, and The Tech Garden provide opportunities to assist startups. Potential for an Infrastructure Bank to provide future transportation funding for states. New federal funding opportunities to address the skills gap, the need for more STEM education, and to keep students in the region. Potential for immigration reform at the federal level to address the needs of the agriculture sector, the corporate sector, and the talent/brain drain issue.

Challenges
2013 will be another difficult budget year for governments at all levels. Need better marketing of the variety of jobs that exists to attract people and improve workforce talent pool; current workforce development programs are not achieving a great enough return on investment. Potential budget cuts at the federal level, and the potential impact of Base Realignment and Closing creates uncertainty and fiscal challenges. The public sector will continue to do more with less, making determining spending priorities an ongoing challenge. Concern for reducing government waste and spending without sacrificing good programs and ideas; reaching a limit of how much government can be cut. There is an increased need for private investment given dwindling public sector funding; need to ensure there is a return on investment to the taxpayers when government invests in private projects. Infrastructure needs across the state are significant, yet lack funding; prioritization is needed.

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HEALTH CARE Health Care

TRENDS IN 2012
Rapid changes in the health care system from the federal level put pressure on states to move quickly to realize cost savings. New reimbursement methodologies, service strategies, regulatory frameworks, payment models and new partnerships/collaborations were introduced all with no funding for implementation. Implementation of the Affordable Care and HITECH Acts continued to drive numerous initiatives around use of Health Information Technology, Electronic Health Records, and electronic data exchanges to better manage population health with a goal of improving quality/coordination of health care while reducing costs. There has been a trend toward strategic mergers among providers. Reimbursements continued to decline, adversely affecting margins. Fewer doctors were available, with more pressure on them with the new health care model. Fiscal pressures from lower reimbursement rates caused some layoffs in the field. Higher patient volume, sicker patients, and higher acuity persisted. Long term care programs, e.g., PACE, maintained long waiting lists. Hospitals are moving to more regional models. Rural providers need to ramp up their services and find affiliations. Telemedicine was slower than expected even though broadband access improved.

OUTLOOK FOR 2013

Opportunities
Affordable Care and HITECH Acts continue to provide numerous opportunities, including Health Information Technology development and implementation of health information exchange standards. Numerous programs are in place to explore new ways of providing and paying for health care. New care models are emerging to reduce readmission rates. New patient monitoring systems present a huge opportunity for Welch Allyn and other medical device manufacturers. Regionalization is a solution for the Red Cross (16 counties), hospitals, and others. It provides a larger scope of resources to draw from and more affiliates are expected. If New York State is granted an 1115 Waiver it would provide important flexibility and funding for five years to test new or existing approaches to financing Medicaid, reinvesting the program and reducing costs. There are opportunities for acquisition of physician groups by hospitals and negotiation of physician employment contracts. Moving toward systems of care, e.g., collaboration among multiple facilities and the creation of patientcentered medical homes; investment by the state and federal government into these new models of patientcentered care. There is a growing market for safe cleaning in the health care industry. Accountable Care Organizations coming on board locally will allow people previously without care better access to quality and coordinated care at a lower cost.

Challenges
Skills and talent shortages remain, with a need to recruit and retain skilled staff and more primary care physicians, which will be compounded as more Americans become eligible for health care. More than 50% of young physicians leave New York State after completing their training. Anticipating ongoing trends in reduced reimbursements, pressures from private insurers to cut costs; inability of individuals who are being asked to cover a greater share of their care to pay bills, increased health care costs due to regulation. Hospitals and practices face increased employee wages/benefits and operating expenses. The region has an inadequate supply of health care technology professionals to support required initiatives. Meeting the demands of the new Affordable Care Act and mandatory directives from Washington make staying in business more challenging for some practices. Medical liability in New York State adds to the cost of services and products; remains a recruitment and retention issue for physicians. Getting medical devices to rural patients remains a challenge, as does determining who will bear these costs. There will be increased expenses with more FTEs to accomplish the administrative burdens of government mandates, resulting in physicians spending less time with patients.

New Products & Services Expected to Expand by:

Transcending walls and moving into surrounding neighborhoods, using data to determine where to invest resources within the neighborhood (e.g., St. Josephs Hospital Health Center/North Side). Growing green sanitation; green cleaning technologies are looking to regionalize manufacturing to service the U.S., Canada and India. Providing better services to patients where there are fewer funds available through Patient Navigators at hospitals. Expanding linkages and partnerships with physicians. Providing regional services across counties; expanding facilities and products.

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HIGHER EDUCATION Higher Education

TRENDS IN 2012
Changes in families economic status following the recession and the cost of higher education are a concern; families cant pay as much for higher education as they could a few years ago. Students and their families are shopping more for higher education bargains. The affordability issue cut both ways for institutions, particularly state institutions. On one hand, more students are going to community college for the first two years rather than commit to a four-year school. However, more students who, in the past, would have gone to higher-priced private institutions are now seeking lower- cost state institutions. The decline in high school graduates in CNY and the Northeast contributed to colleges and universities looking further to find candidates. (e.g., Syracuse University is recruiting more in California). New federal transparency rules are an issue for colleges, both in terms of the universities being able to accurately report information (e.g., graduates salaries five years after graduation) and their ability to present the information fairly to students. Continued pressure to provide job-ready skills, which threatens to erode universities traditional role of educating students. Schools put more focus on internships, adding classes on resume writing. Universities sought partners in the business community to create internships, co-ops, and special projects. Colleges and universities are trending to more nontraditional faculty, e.g. adjuncts and professors of practice in instructional roles.

OUTLOOK FOR 2013

Opportunities
Transfer students from community colleges become more of a hot commodity for universities as the number of high school graduates in the Northeast declines. An increased interest in recruiting international students, particularly from China, Korea, Brazil, India and Eastern Europe. This has attributed to steady growth, but not as much as anticipated. Greater use of online courses, particularly to reach nontraditional students. Growth in adult learners from out-of-area, including larger New York State and international markets. Also, longer life spans are leading to growing interests in education for second careers. Creation of more partnerships with other institutions to make programs financially viable. Creating specialized programs to appeal to business sectors where there are demands for graduates, such as medical careers and health-related professions, advanced manufacturing, nuclear engineering, and financial services.

Challenges
Pressures from business to deliver workforce and trained specialists. These programs are expensive, and it may not be financially viable for colleges and universities to provide them. Student preparation. As many as 60% of the students being accepted to community colleges need remedial training to start college courses, even students who graduated with a Regents diploma, resulting in students utilizing financial assistance on remedial courses that dont count as college credit. More disruptive technologies making their way into higher education and universities. Downward pressure on tuitions, and a greater demand for financial aid, particularly for middle class students. University revenues and expenses still under pressure. Benefit costs are escalating rapidly, and costs for new facilities and keeping aging facilities up to date has become more expensive. Universities endowment values have recovered, but more are for dedicated purposes, and trying to keep commitments that were made pre-recession.

New Products & Services Expected to Expand by:

More online programs and degrees, including online graduate degrees, particularly for students already in the workforce. Increasing outreach and networking to recruit underrepresented populations. Collaborating more on cooperative programs between institutions, e.g., SUNY Oswego, SUNY ESF, and SUNY Upstate, as well as between private business and educational institutions. Paying more attention to the downsizing of the military, a potential growing market with federal education benefits.

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HUMAN SERVICES, NOT-FOR-PROFITS & THE ARTS Human Services, Not-for-Profits & the Arts
TRENDS IN 2012
Organizations saw an increase in requests for emergency services, including medical co-pays, utility assistance and rent assistance, indicating that the economic recovery has not yet affected the most vulnerable populations. Though social service providers and non-profits expected to receive significant reductions in funding, much of it from public sources, in many cases the reductions were not as severe as expected and planned. Anticipating an ongoing climate of reduced public support, many small non-profits and human service providers investigated merging with larger regional organizations. New York State began to use managed care companies as a middle man between the state and the human service support organizations, with the goal of containing the cost of Medicare and Medicaid. In many cases, these companies encouraged mergers and acquisitions between local human service providers to keep costs down for the state. Health care reform presented many changes and unknowns. Gas and food prices were up, impacting many of the populations served by this sector.

OUTLOOK FOR 2013

Opportunities
New opportunities to provide services to various vulnerable groups will come with the implementation of new federal health care legislation. Connecting some of the more formal human service activities with workforce development activities. Many individuals that use human service organizations can also benefit from workforce development training and assistance. New collaborations between non-profit organizations continue to be an opportunity, as well as merger/ acquisition opportunities; some driven by budgetary needs to consolidate services, but many driven by the desire to bring new solutions and partnerships to persistent community challenges. In the human services field, the continued trend towards integrating mental and physical health care will enhance the ability to provide wrap around support to clients. Technological advancements with medical health records make it cheaper and easier for non-profits to transition systems from paper to electronic. This could ultimately help reduce costs but also help coordinate the provision of care. Service providers are poised to help health care providers adapt to the changes in federal health care reform. Libraries are interested in digitization projects; promotion of library products and services offered to the community is becoming increasingly important. Opportunity to expand individualized supports for people with disabilities. The growth in managed Long Term Care may provide opportunity for more service referrals and funding sources.

Challenges
Policies and regulations for small non-profits and small businesses continue to challenge the operational bottom line of organizations. Trend towards consolidation of smaller non-profits has the potential to negatively impact the level of care and service each non-profit can provide. Traditional services offered to the public (e.g., libraries) are going through a transition due to increased use of the Internet and the need to provide Internet access to the public. Planned and expected budget cuts at the county, state and federal level directly impact the ability of many social service agencies that rely on Medicare and Medicaid reimbursements to maintain current services. Costs for personnel and fringe benefits continue to rise. Donor uncertainty impacts peoples willingness to give generously to causes they care about. Deficit planning will cut funding to non-profits that assist the poor, requiring the need to find new funding streams to meet a growing need. Growing waiting lists resulting in those in need not being served in a timely manner. Pay stagnation in the sector may increase turnover.

New Products & Services Expected to Expand through:

More programs to assist vulnerable populations and individuals living in poverty. New programs to address homelessness, which appears to be on the rise. New services and programs directed at home health care to address the increase of elderly in the community. Connecting more providers to the Regional Health Information Organization and reaching out to more long-term care providers. Acquisitions that expand services into new counties and markets in the region.

17

MANUFACTURING Manufacturing
TRENDS IN 2012
A sluggish recovery continued to affect the sector, coupled with a severe reduction of government contracts that contributed to significant downward pressure on businesses. A rise in manufacturing and raw material costs created a strain on the ability to drive profit. Despite these challenges, some companies chose to invest in facility and equipment upgrades to achieve efficiencies and to reduce production costs, labor costs, and insurance costs. Although consumers have said they want more renewable energy products, there was a loss of interest in green products dating back to the recession. The wind energy market saw significant slippage with credits not extended. Larger manufacturers have gotten more aggressive, creating competition and the challenge to maintain market share. There was some unforeseen customer slowdown, with international business growing at a much slower rate than projected for some.

OUTLOOK FOR 2013

Opportunities
Some companies in the sector expect a great year in 2013, with increased sales. Major opportunities lie in the development of new products and markets resulting from R&D efforts and new equipment/technology investments to facilitate product development. International trade growth. Continued growth in demand for renewable energy, but not necessarily green products. As manufacturers have expanded their capabilities, efficiency has increased due to significant capital investments, enabling some to win more private label and contract manufacturing business. Continued decline in the print industry will create opportunities for new products and consolidation. Consolidation and loss of competition due to those impacted by a challenging economy provides opportunities for others. Continued growth in new technology and equipment spending enables companies to reduce production costs, labor costs, and insurance costs. If consumer spending increases, businesses will have more opportunities to purchase new equipment. Tax incentives for consumers, as well as businesses, will help.

Challenges
General economic trends, including a slow growth domestic economy, increasing expenses (specifically health insurance), and reluctance in customer spending, remain a challenge. Loss of significant government contract work will require companies to partner on creative solutions to growing product lines. Securing capital for inventory expansion and operations growth. Uncertainty over taxes and health care changes present a major challenge. Controlling material costs to remain competitive on the national level. Balancing pricing pressure from customers against expense pressures (e.g., increasing costs from health care, taxes). Market/customer identification and development is challenging for smaller companies.

Photo courtesy of Pall Corporation

New Products & Services Expected to Expand by:

Finding new opportunities for unique applications of existing products, and increasing distribution of legacy brands. Identifying and partnering with companies seeking creative solutions. Innovating to develop new products for more markets and marketing them to existing customers. Enabling quick expansions of product lines and customer base through acquisition. Additional capital investment. Pushing products internationally. Incorporating the latest in technology improvements from partners into existing product offerings.

Photo courtesy of Novelis

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SMALL BUSINESS & Business & Professional Services Small PROFESSIONAL SERVICES
TRENDS IN 2012
The economic environment was exceptionally cautious. Businesses delayed new investment due to market uncertainty. Uncertainty in tax laws impacted the accounting and legal industries. Individuals held off on legal estate planning until after the election because of the uncertainty. Firms found it difficult to find top talent and recruit people, particularly mid- to high-level positions. The sector is seeing a switch in work habits, as more of the workforce is looking for work/life balance. Businesses were conservative with their spending and sought to cut costs. New government reforms (e.g., Dodd-Frank Wall Street reform, health care reform) caused delays or postponements in scheduled work. Health care costs and insurance rates increased dramatically. Companies focused on niche business, becoming more of an expert in their field and client base and doing so on a more regional basis. Focus on local business; which has helped businesses with sustainability, value to clients and transportation costs. Clients cut back on amount of services purchased, but firms made up for it by increasing the services offered. New business opportunities were not as prevalent as in 2011. Uncertainty in government spending; particularly impacts service businesses dependent on public funding for part of their revenue. Consumer weakness increased competition, and the economy has recovered more slowly than anticipated.

OUTLOOK FOR 2013

Opportunities
Continuing niche-based focus on areas of strength to be more competitive outside the region. Servicing health care is an opportunity for growth; hospitals are growing and expanding. For businesses that deal with municipalities, tax laws will play a larger role on 2013. For accounting and law firms, the laws surrounding income tax and estate tax/planning provide more consistency in workflow and firms see opportunity for growth. Decline in unemployment claims. Retention of hourly employees is starting to stabilize. Growth outside the region. Growing portfolios attract larger businesses outside the region. Technology also allows for more efficient communication and reduction on travel costs. Greater support for the buy local movement. Effectively communicating businesses strengths and the local message helps win business within the region. The ripple effect of doing business locally is important. Clients are looking for solutions that help save money and streamline processes. More smaller-scale manufacturing locally could lead to less reliance on overseas, and contribute to hiring of skilled employee. CenterState New York Export Initiative. A potential state minimum wage increase could improve the standard of living for some, and as more individuals rely on hourly jobs, this will have a positive impact on the overall health of the economy. Increasing usage of the mobile technologies.

Challenges
Retention, leadership development and recruitment to the area; still seeing a lack of qualified talent at all skill levels. Rising health insurance costs and changes under the Affordable Care Act will impact businesses and unemployment/ underemployment. Changes in federal health care have service providers considering more part-time employee options. Although some expect profits to increase, continued uncertainty in the economy dissuades companies from investing in infrastructure. Aging workforce requires skill development in younger employees; need for succession planning and leadership development. A potential state minimum wage increase could negatively impact hiring and retention at companies already paying significantly more, as it is cost-prohibitive to continue to increase pay to stay above competitors. Uncertainty with fiscal policy holds up business investment. Increased market pressure to consolidate. Lack of funding opportunities for startups. Wholesale costs are up, creating new pricing challenges.

New Products & Services Expected to Expand by:

Increasing outreach and networking to recruit under-represented populations, and understanding that growing demographic. Continuing expansion into niche and national markets; penetrating territories where theres currently a smaller market share. Improvements in technology and growing digital platforms. New alliances and strategic partnerships. Expanding the succession and family owned business segment of professional services.

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TECHNOLOGY & COMMUNICATIONS Technology & Communications

TRENDS IN 2012
Existing customers were hesitant to spend money; waiting to see an uptick in the economy. Increased need for innovative solutions to reduce manufacturing costs. Growth in data use was anticipated, and the challenge is to keep up with demand (capacity). Device diffusion continued to change the way customers consume content. Constrained customer budgets were prevalent. Price basement restrictions were a factor as anticipated. Semiconductor capex downturn started in the summer of 2012 was not anticipated, however it is also not unprecedented for this industry. Difficulty operating in a low margin industry (e.g., mobile applications). Anticipated demand for product didnt always translate to new clients/customers, even when greater efficiencies are offered. Finding qualified software engineers remained a challenge.

OUTLOOK FOR 2013

Opportunities
Significant growth in mobile device sales, as well as automation and use of mobile devices. Opportunities for manufacturing cost reduction and making U.S. manufacturing more competitive globally. Network expansion of 4G LTE, lower cost data devices, increase in business solutions. Civil aviation modernization requiring technology upgrades. Organic LED lighting is growing in demand and showing capabilities to support manufacturing locally. Opportunities to expand business models to target customers in other fields who have demand for products being developed. Increased spending on mobile advertising. Manufacturing leaning towards using new technology for monitoring process.

Challenges
Large corporations will continue to dominate mobile advertising. Reduced budgets for capital expenditures; fiscal challenges hinder ability of firms to expand networks and products at the pace desired for 2013. Customers are making do longer with existing technologies, rather than upgrading. Budget uncertainty. Supply chain problems requiring longer lead time. Economic stagnation or decline may persist depending on how governments in the U.S. and European Union deal with the resolution of public sector debt issues. Increased competition. Costs vs. perceived costs of new technology.

New Products & Services Expected to Expand by:

Investing significantly in new product development in every area of business. Innovating current products via software development. Launching new mobile advertising services in 2013. In the mobile device industry, introducing more devices with greater coverage at greater speeds. Expanding into international markets.

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TOURISM Tourism
TRENDS IN 2012
For most tourism businesses and organizations, the growth rate was around 3%. There was a shift in the type of business growth, with more group-related and Canadian business. Growth patterns were fairly consistent across multiple dimensions of the industry. As Destiny USA, the Landmark Theatre, the Onondaga Creekwalk and other attractions drastically changed the marketplace, attentiveness to existing product and customers did not shrink. All segments of the industry report shifting focus to new potential market segments, i.e. group travel, corporate, short-term leisure, Canadian, etc. There is more group travel, but lighter loads. Shifting consumer spending habits directly related to the economy have made leisure activities less accessible to many patrons. Companies in other sectors (e.g., transportation) sought out ways to find their niche in the tourism sectors.

OUTLOOK FOR 2013

Opportunities
Collaboration among area businesses and organizations is an enormous priority for maximizing the impacts of Destiny USA across the region. Emphasis on amplifying impacts of new community visitors to Destiny USA and cultural offerings is a trend for the foreseeable future. Arts and cultural offerings will continue to grow in impact and distinction, including one-of-a-kind exhibition schedules at the Everson Museum of Art, aggressive programming by performance venues, and unprecedented collaboration across multiple entities, all of which will foster cultural participation and visitation. The regions heritage will be more pronounced through the efforts of the Onondaga Historical Association and its partnership with the Haudenosaunee. Canadian travel is projected to continue to grow stronger as the Canadian dollar continues to outpace the U.S. dollar. Sports travel to the area will continue to grow stronger as it receives greater levels of national recognition (e.g., #6 best city in the U.S. for triathlons) and as Syracuse University enters the Atlantic Coast Conference. The expansion of the Rosamond Gifford Zoo will aid in driving family visitation to the area. There will be greater focus on increasing the quality of products while finding new ways to interact and communicate with audiences. Growing opportunities in agritourism.

Challenges
The most unsettling challenge for the areas tourism industry for 2013 and beyond is the uncertainty of the overall national, international, and even local economy. Minimal growth is anticipated in the overall tourism sector with projections ranging between 1 and 3%. Continued changes to the regional destination product present challenges to the industry. While Destiny USA presents vast opportunities for visitation and spending, the ultimate level of impact is still undetermined. Economic uncertainty expresses itself visibly in the form of extended decision making periods among meeting and travel planners, looser terms in contracts for rooms and meeting space, and abbreviated planning periods for conducting events. Hotel room inventory continues to grow emphasizing the need for business expansion. Lingering effects of Hurricane Sandy will potentially impact state travel and funding decisions. With the increased focus on Canadian customers, there is a challenge in marketing and getting the word out about services offered in order to compete for those dollars.

New Products & Services Expected to Expand by:

Increasing the number of scheduled programs and performances. Raising the awareness of combining tourism and agriculture. Continuing to grow audiences and develop products in alignment with company brands.This includes partnering with organizations in the industry and with local businesses. Cooperative marketing to proactively drive new business, and continued educational efforts on market development and needed outreach techniques.

21

TRANSPORTATION Transportation
TRENDS IN 2012
The increased cost of fuel affected businesses across the transportation sector, placing pressure on profitability and requiring transportation companies to increase prices, institute fuel surcharges, or develop ancillary revenue streams. Decreased state and federal infrastructure spending had a negative impact on operations for transportation firms and depressed revenue for firms that serve the sector (e.g. engineering). New authorizations for federal transportation spending (aviation and surface) were passed for shorter terms than usual, making it difficult to advance long-term projects that require significant lead time. In air travel, Syracuse passenger traffic was flat in 2012, in line with national trends. The number of Canadians using Syracuses airport increased in 2012, driven by high airfares in Canada and the strong Canadian dollar. Syracuse Hancock International Airport advanced a major security and renovation project, scheduled for completion in late 2013. Capital investment increased in 2012 among bus and trucking companies, with some moving to newer, more fuel efficient vehicles. Others reported a lack of cash and lending. Alternative fuel vehicles are growing in this sector (Centro added 65 new buses). Centro opened its new Transit Hub in downtown Syracuse.

OUTLOOK FOR 2013

Opportunities
Increasing numbers of Canadians using Syracuses airport will present new opportunities for airlines, particularly to leisure destinations. Engineering firms that have traditionally focused on serving the public sector see opportunities in private sector projects in energy, land use planning and specialty construction. Planning for the future of I-81 will accelerate in 2013. New environmental regulations and climate considerations may create new opportunities for firms with expertise in environmental engineering. With the widening of the Panama Canal scheduled for 2014, the region may see activity from companies preparing for increased import and distribution activity. This is likely to be driven by increased congestion at the Ports of New York and New Jersey, requiring the development of new inland port activity. Rail activity is expected to increase in the region due to fuel cost pressures and potential increases in port activity. New options for alternative fuel fleet vehicles (primarily natural gas) may help to reduce transportation fuel costs and drive additional capital expenditures. Rebuilding projects after Hurricane Sandy may drive additional business for companies that do work downstate and in New Jersey.

Challenges
The cost of fuel is expected to be an ongoing challenge in 2013. Recruiting qualified drivers, managers, and engineers for this sector may become even more difficult as the economic recovery continues. Transportation infrastructure repair and improvement projects are likely to decrease in 2013 due to reduced state and federal funding. Downward pressure on highway infrastructure funding is expected to continue due to increased fuel efficiency standards which are driving down fuel consumption; these projects are funded through the national gasoline tax. Rebuilding projects downstate in the aftermath of Hurricane Sandy may have a negative impact on funds available for infrastructure projects in other parts of the state. Other than FedEx and UPS, cargo flights to/from Syracuse are very limited.

New Products & Services Expected to Expand by:

Airlines Potentially expanding capacity in Syracuse in 2013 or 2014, with larger aircraft gradually replacing 50-seat regional jets currently serving some markets. Increasing numbers of Canadian travelers using Syracuses airport may help to attract non-stop flight to markets that currently require a connection, particularly to Florida. Griffiss International Airport, Rome Increasing aircraft maintenance operations and drawing additional interest for cargo operations. Centro - Opening a new Transit Hub in Utica; carrying out a long-term study of light rail and bus rapid transit possibilities for the Syracuse market. Inter-city bus operators - Examining service to new markets from various points within the region. Exporters - Looking to Canada and Latin America as potential growth areas. Trucking - Adding more vehicles to fleets.

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REGIONAL PROJECTS Regional Projects

Projects Driving Growth for CenterState New York in 2013
The 12-county CenterState region received $137.6 million for 180 catalytic projects in the second round of the states Regional Economic Development Council competitive funding process. These projects are creating jobs, supporting key industries and export-intensive businesses, and transforming the economic landscape of CenterState New York. Several key projects across the region are highlighted below. REDC Region Central New York North Country Mohawk Valley Southern Tier Finger Lakes TOTAL CenterState Counties Cayuga, Cortland, Madison, Onondaga, Oswego Jefferson, Lewis, St. Lawrence Herkimer, Oneida Tompkins Seneca Total Awarded $93,751,565 $24,688,010 $11,617,610 $6,656,790 $875,000 $137,588,975 # of Projects 73 48 46 11 2 180

Central New York

Plaza of the Arts (Cayuga County)
Project includes the demolition of an existing building and construction of a 20,000-square-foot, two-story office building to house a training facility for employees of WST33, the largest Arbys franchisor on the East Coast, with additional space for other businesses. Total Project Cost: $3,500,000 Award Amount: $700,000 Jobs: 23 new; 16 retained; 90 construction
Photo courtesy of Soules & Dunn Development Corporation

Pall Corporation/Finger Lakes Center of Excellence (Cortland County)

A state-of-the-art research and development facility will be created within existing space at one of Palls three facilities. Renovations will connect laboratories and offices and renovate/expand R&D and office space. The resulting Finger Lakes Center of Excellence will be the primary technology center for its industrial business. Total Project Cost: $8,884,571 Award Amount: $800,000 Jobs: 18 new; 10 retained; 50 construction

Photo courtesy of Pall Corporation

23

REGIONAL PROJECTS Regional Projects

Empire Farmstead Brewery, Inc. (Madison County)
Empire Farmstead Brewery will construct a new 20,000-square-foot agricultural and brewing facility that combines manufacturing, farming, value-added food processing, agritourism, with potential to expand the product into international markets. Total Project Cost: $1,029,250 Award Amount: $550,000 Jobs: 75 new; 30 construction

Mohawk Valley
Gehring Tricot Expansion (Herkimer County)
The Gehring Tricot Corporation will expand its fabric manufacturing and weaving operations at three facilities in Herkimer and Montgomery Counties, allowing the company to move its Massachusetts weaving operation to New York and enabling its R&D efforts to continue growing. Total Project Cost: $3,500,332 Award Amount: $950,000 Jobs: 28 new

Sibleys Building Redevelopment (Onondaga County)

The former Sibleys Department Store will be redeveloped into a mixed-use space with approximately 62,000-square-feet of ground-floor retail space and 60 residential units on the upper three floors. Total Project Cost: $18,744,599 Award Amount: $2,500,000 Jobs: 42 construction

Northeast Cyber Forensics Center at Utica College (Oneida County)

Utica College will create the Northeast Cyber Forensics Center to provide the high-technology crime-fighting tools and services needed to combat the exponential growth of cybercrime in the public and private sectors. Total Project Cost: $6,500,000 Award Amount: $250,000

CNY Raceway Park (Oswego County)

A 150-acre site in Central Square will be developed into a premier multi-use destination facility for motor sports, trade shows, concerts and other events. New facilities will include a state-of-the-art synthetic dirt racing track with new, high-tech LED lighting; banquet and restaurant facilities; and VIP suites. Total Project Cost: $30,200,560 Award Amount: $2,000,000 Jobs: 150 new; 339 construction

Downtown Utica Streetscape (Oneida County)

Project includes streetscape improvements along Genesee Street, from Oriskany Boulevard south to Oneida Square and in the city blocks immediately surrounding the State and County office buildings, as part of a conversion of the public right-ofway to a boulevard-style design, and creation of additional parking. Total Project Cost: $2,400,000 Award Amount: $250,000

Design Concepts and Enterprises LLC (Oswego County)

Design Concepts and Enterprises, LLC, will expand its production capacity with 12,000-square-feet of new space, expanding its ability to manufacture surgical-grade drilled end wound closure needles, and ultimately increasing annual sales by $4,500,000. Total Project Cost: $1,029,250 Award Amount: $500,000 Jobs: 30 new; 30 construction

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REGIONAL PROJECTS Regional Projects

North Country
Creekwood Phase II - Norstar Development (Jefferson County)
Norstar will construct 104 units of housing to serve low- and moderate-income families and military personnel in Jefferson County. Award Amount: $3,000,000 Jobs: 75 construction

Finger Lakes
The Seneca AgBio Green Energy Park (Seneca County)
The Seneca AgBio Green Energy Park will redevelop the former Army depot in Seneca County, renovating and equipping the plant for the expansion of two tenants, and will provide on-the-job training in advanced manufacturing and production operations of green energy, environmental sustainability and agricultural processing equipment, grain drying and waste processing. Total Project Cost: $8,000,000 Award Amount: $125,000 Jobs: 60 new
Photo courtesy of The Post-Standard/Stephen Cannerelli

Lyons Falls Mills Site Redevelopment Lewis County Development Corp. (Lewis County)
The project will redevelop a 9.4 acre brownfield site, including demolition of buildings and upgrading infrastructure to create a shovel-ready business park, and will allow for the expansion of an existing hydro-facility and the accommodation of other sustainable energy facilities. Total Project Cost: $30,000,000 Award Amount: $1,000,000

North Country Food Hub (St. Lawrence County)

North Country Regional Food Hub will establish a 9,000-square-foot facility to distribute high quality locally-grown and raised products to regional wholesalers, restaurants, grocery stores, food cooperatives, schools, colleges, hospitals and other institutions. Award Amount: $350,000 Jobs: 15 new

Southern Tier
Ithaca Commons (Tompkins County)
Project will rehabilitate and reconstruct three blocks of deteriorated surface in the Ithaca Commons, and will replace and upgrade all underground utilities. Project is the first phase of the planned Intermodal Transportation Hub-Accelerating Community Access (ITHACA). Total Project Cost: $10,000,000 Award Amount: $110,000 Jobs: 270

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THANK YOU FORECASTERS Thank You Forecasters

Bob Allen
Crouse Hospital

William Brod
Syracuse New Times and Family Times

David Cotter
Rarely Done Productions

Michael Finn
CBR Real Estate

Sam Haines
Gear Motions, Inc.

JB Allred
Allred & Associates, Inc.

Eileen Brophy
Brophy Services, Inc.

Michael Crinnin
AIDS Community Resources, Inc.

Andrew Fish
Cayuga County Chamber of Commerce

Earl Hall
Syracuse Builders Exchange

Nathan Andrews
Morse Mfg. Co., Inc.

Todd Buchko
WonderWorks

Bill Culley
Empire Robotics, Inc.

James Fish
Clarkson University

Kevin Hanna
AT&T

Debra Angarano
Tsys Merchant Solutions

Dean Burrows
Nixon Gear

Patrick Dailey
Fust Charles Chambers, LLP

William Fisher
Office of Onondaga County Executive Joanie Mahoney

Rose Hapanowich
Destiny USA

Alessandro A.E. Anzani

WavElectric

Amy Casper
Ephesus Technologies

Matthew DaRin
Bluepoint Environmental, LLC

Kim Fortin
4 Tin Fish Farms

Larry Harris
Saab Sensis

Kim Armani
SUNY Oswego Metro Center

David Chalker
Sun BD Corporation

Ray Davis
Sharenet

Stephen Fournier
KeyBank

Isabelle Harris
Office of New York State Senator John DeFrancisco

John Arquette
John Arquette Properties

George Chapman
GW Chapman Consulting

Arthur Delaney
Delaney Moving & Storage, Inc.

Michael Frasciello
University College Syracuse University

Charlene Hart
Oncenter

Michael Atkins
Office of New York State Assemblyman Sam Roberts

Peter Chappell
Chappell Farms

Louis DeMent Jr.

Giovanni Food Co., Inc.

Pat Fratangelo
Onondaga Community Living

Lee Henderson PhD

Vybion

Stephen Bailey
Millennium Transportation

Jason Chiesa
Empire State Development

Victor Diserio
Haylor Freyer & Coon, Inc.

David Freund
Selflock Screw Products

Kevin Herlihy
Watervale Farms

Mary Anne Barrington

Chadwick Residence, Inc.

Matthew Clark
Cazenovia College

Sue Dove
Skaneateles Chamber of Commerce

William Gage
Eastern Managed Print Network

Spike Herzig
The Herzig Group, Inc.

Chris Belna
A La Carte Business Services

Dan Cleary
Cortland Beer Company, LLC

Gino Duca
Salt City Technical

Daniel Gardner
Rich & Gardner Construction Co., Inc.

Mark Hettler
Testone Marshall & Discenza, LLP

Rob Benetti
Woodbine Hospitality

Edward Coates
Norwich Bank and Trust

Paul Dugal
Caz Limo & Tours

Mike Gillespie
SUNY Empire State College

David Heymann
Sheraton Syracuse University/Greater Syracuse Hospitality & Tourism Assoc.

Michelle Berry
Courtney Consulting Enterprises, LLC

Gregory Cohen
EBS-RMSCO, Inc.

Scott Ebner
Onondaga Case Management Services, Inc.

Bea Gonzalez
University College Syracuse University

Mark Bethmann
The Bell Group, LLC

Dan Colasanti
AdStreamer, Inc.

Deborah Emerson
Central NY Library Resources Council

Richard Hezel
Hezel Associates, LLC

Susan Gorski
JetBlue

Khalid Bey
Syracuse Common Council

Mario Colone
Syracuse Metropolitan Transportation Council

Robert Fancher
Crown Risk Management, LLC

Gerald Hoffman
Onondaga County Medical Society

Chris Gray
Turner Construction

Sara Bollinger
HealtheConnections

Samuel Conley
The Whitacre Engineering Co., Inc.

Maureen Fellows
SUNY College of Environmental Science & Forestry

Michael Howell
S&W Services, Inc.

Ellen Griffin
Fleet Feet Sports Syracuse

Beth Broadway
InterFaith Works

Jon Cooley
Syracuse Sports Corporation

Michael Johnson
Johnson Brothers Lumber Co.

Joseph Ferraro
The Shaker Group, Inc.

Jeff Grimshaw
SUNY Oswego

26

THANK YOU FORECASTERS Thank You Forecasters

Richard Kampas
Green Cleaning Technologies, LLC

Peter Maier
INFICON

Dave Moreau
Georeader, LLC

Beth Rougeux
City of Syracuse

Todd Sullivan
Tech Bridge International

Mason Kaufman
Meals on Wheels of Syracuse

Nick Mancini
UpFront

Kristen Mucitelli-Heath
St. Josephs Hospital Health Center

Kathryn Ruscitto
St. Josephs Hospital Health Center

Carol Sweet
Arts and Cultural Leadership Alliance

Teandra Kelly-Lewis
Saks Fifth Avenue OFF5TH

Michael Mancini
SUNY Empire State College

Neil Murphy PhD

SUNY College of Environmental Science & Forestry

Seth Rutledge
BioChar Heating

Dale Sweetland
ARMtech Insurance Services

Barnett Klane
AmplifyU

Susan Marzolino
Marz Farm

Allen Naples
M&T Bank

David Schneckenburger
Thompson & Johnson Equipment Co. Inc

Craig Swiecki
Office of New State, State Assemblyman William Magnarelli

Jeremy Klemanski
Syracuse Behavioral Healthcare

Terence Masterson
Cayuga Economic Development Agency

Diana Napolitano
Syracuse University

Tim Shaughnessy
Rapid Cure Technologies, Inc.

Rosie Taravella
American Red Cross

Amy Kremenek
Onondaga Community College

Kemper Matt Jr.

Dupli Envelope & Graphics

Louis Neuburger
Donald J. Fager & Associates, Inc.

Ross Sheckler
iCone Products Calmar Research

Kenneth Tock
MacKintok, Inc.

Ron Krukowski
Turner Construction

Toni Maxwell
Catholic Charities of Onondaga County

Sam Notaro
RenAir

Thomas Shepherd
Dairylea Cooperative, Inc./Agri-Edge Development

Brett Truett
SoftNoze USA, Inc.

Ralph Krutulis
ADIO Health Systems

Steve McCormick
Anheuser-Busch, LLC

Alina Osbahr
The Eraser Company, Inc.

James Shomar
Solstice

Scott Vinciguerra
Columbia College

Mike Kuhn
Mohawk Global Logistics

Stewart McGough
Scolaro, Shulman, Cohen, Fetter & Burstein, P.C.

Laura Pederson
Pederson Farms

Crista Shopis
Synairco

John Wakefield
Empower Federal Credit Union

Richard Kunz
CNY Commercial Trucks/DeLacy Ford

Jake McKenna
Parsons & McKenna Construction Co.

Stanfort Perry
Arc of Onondaga

Eric Smith
Upstate Medical University

Michael Wetzel PE
Air Innovations

Rich Landerkin
Central New York Regional Transportation Authority (Centro)

Tom McKeown
ARISE

Eric Persons
Syracuse University

Michael Sokolov
Ayguo

Sarah Wiles
Mid Lakes Navigation

Daniel Paul Larson PhD

Cayuga Community College

Steve McMahon
Cortland Research, LLC

David Pittard
Beak & Skiff Apple Farms

Roger Stackpoole
Le Moyne College

Heather Wood
AmeriCU Credit Union

W. Donald Lemp
M. Lemp Jewelers

Shreefal Mehta
Paper Battery Company

Michael Quigley
Glypher

Ken Steiger
Steiger Training & Development

Ron Woytan
Business Systems of CNY

Lisa Loftus
King + King Architects

David Miller
JADAK, LLC

Kathy Rapp
Onondaga County Legislature

John Stepien
American Express/New York State Restaurant Association

Terry Zarnowski
Schneider Packaging Equipment Co., Inc.

Bryan Luce
Reliance Funding Group, Inc.

Neil Miller
Finger Lake Organic Growers Corporative

Samuel D. Roberts
New York State Assembly

James Stewart
Telligen

Gary Zausmer
Zausmer-Frisch, Scruton & Aggarwal, Inc.

Mac MacMurray
C&S Companies

Patrick Mohr
Eastwood Litho, Inc.

Maryann Roefaro
Hematology-Oncology Associates of CNY

Albert A. Stirpe Jr.

New York State Assembly

William B. Magnarellli
New York State Assembly

Bernhard Molldrem
Law Office of Bernhard Molldrem

Angelo Roefaro
Office of U.S. Senator Charles Schumer

27

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