Mark Schweiker means business

The former governor wants to market the region to the world

By Fernando Méndez-Borrero

Mark Schweiker has a very ambitious and far-reaching plan for Philadelphia. The former Pennsylvania governor intends to create a new identity for the Philadelphia region, placing the area as a competitor in the world market. We had the opportunity to meet the former governor in the elegant headquarters of his newly formed organization, the result of merging Greater Philadelphia First into the Greater Philadelphia Chamber of Commerce. Mr. Schweiker greeted us in the conference room looking casual and relaxed and exuding confidence. It is easy to understand why many political experts lament the fact that he removed himself from the last election. The way he dealt with the mine disaster during his short term as governor, and the subsequent media exposure, caused many to wonder why he had not stayed in the race against Ed Rendell. But Mr. Schweiker is clearly not resting on his laurels, and his charismatic presence is a reassuring factor for the business community. Business and political leaders are looking to his agency to help improve the business climate of Philadelphia and to launch the new initiative that, in his own words, "will establish a business identity, promoting the region as a good place to do business".

"It's called branding", said Mr. Schweiker as he settled into the conversation, speaking without notes and demonstrating a mastery of the facts, quoting projects, the condition of the region, and statistics from memory.

PHBJ: Are local taxes a problem?

Schweiker: Our membership has addresses all around the Delaware Valley. It's important for you to know that we are a regional business force. We are not concerned only with what is of importance to Philadelphia.
Without a doubt the wage tax is the bane. We are also in an environment where the prospects to bring it down by half a point are good. That will make the city more affordable.

The next question elicited the longest response, in part due to the importance of the Convention Center as one of the large pieces in rebuilding the image of Philadelphia as a business friendly place. In recent months, especially since Rendell became governor, the Convention Center has become a political hot potato. Well, maybe not a hot potato, because the truth is that everybody, the mayor, the governor, City Council, Harrisburg politicians, want a piece of the action. The Convention Center is by all accounts already too small to hold the large and profitable conventions that end up choosing New York or Chicago. But the political fight is not about the need to expand, but rather for total control of the center. In the end, regardless of who has control, Philadelphia must come to terms with the unions that many perceive as an obstacle. Many conventions come here only one time and never return. Many others stay away. Size is only one of the problems. The union problem is another important factor. We asked Mr. Schweiker about that.

What is the status of the Convention Center?

The mayor and the governor will have to address that. I speak for my members when I say "let's get it sorted out. “We have to start paying attention to 2006 and 2007. We need to be asking the tough questions from the people in the hospitality industry. What are they going to do to persuade and create convention business? You are getting preliminary information about how we are going to do the regional business marketing. Keep in mind it's not the visitor's experience; it is not the residential experience; it's the business identity, and as you can see it's building the image, just beginning to find that now. I would say that what we do as far as the healthcare industry is just as important. The Convention Center is small in comparison to the healthcare industry in this region. 57,000 jobs and 2 billion in economic impact. Healthcare is 250,000 jobs and probably 30 billion in economic impact. Medical malpractice, a lack of insurance affordability is driving doctors away and potentially more hurtful than the Convention Center issue.

This Spring represents an important time as far as rectifying that issue, and my people in Harrisburg representing the business community talked about the need to resolve it. The next eighty days are critical. The legislature tends to do more work in the Spring than they do in the Fall. This issue manifests in many ways. It means that the pregnant mom doesn't have her favorite ob-gyn. It means the family who needs a neurologist early in the morning because of a serious car accident doesn't have a neurologist…so access to healthcare is foremost in our minds, but it is also the economic impact.

Is Philadelphia positioned to compete?

We talked a moment ago about branding, regional marketing. No one would argue that one of the more outstanding aspects of the regional economy is that we are home to successful healthcare institutions, life science companies and bio-tech, and when you lose physicians and intellectual talent we are forfeiting our future and hurting our economic health. So, while some think it is a public policy challenge, here at the chamber we see it as a severe economic problem. I was born and raised here. My mom and dad always talked about how ample medical care was in the city and that we have some of the finest teaching hospitals. So as a result of their academic experience doctors were inclined to practice here. Now, with medical malpractice they are declining to practice here.

We have the Chilean Chamber of Commerce here. The Hispanic Chamber of Commerce also. We provide space, kind of incubate, help growth. The Chilean ambassador came here. He spoke about the wisdom of expanding NAFTA opportunities. And some agreements with European Union countries. Activities with the EU countries are growing; the expansion of NAFTA means not just opportunities for the people of Chile but more activity at the port, more paychecks for Pennsylvania. So we have an advantage working in concert with the U.S. Chamber of Commerce just up the street and hosting the Chilean ambassador. That is representative of the networking strategy. The Chamber does a lot of things well. One of these is network building. So, we need to continue that. And you accomplish that through the alliances, such as business with Mexico.

What about new industries?

My administration [did a lot in that regard]. We worked with state government, especially for agricultural commodities and equipment. We are open to that--two-party efforts. But we have a number of those. British American, the Panamerican Association. It is an example of our realization that the world is the marketplace.

At the beginning of the Street administration they spoke of making Philadelphia a technologically advanced city. Is that an on-going effort?

We are already a powerhouse in bio-tech and life sciences. We are number two in Big Pharma, number three in life sciences, number four in biomechanical device production. We need to leverage off of that promise and create and help fund entrepreneurs who will establish companies to provide more jobs and paychecks to our residents. We need to emphasize that. Back to the regional business plan. You know, we are number two and three and four in those areas but not many people know it. Perception trails reality. And what can you do when you have that kind of status? You’ve got to communicate. You have to act to make perception catch up to reality. And you do that by putting a business plan in motion. That is what we seek to do. That will increase the gravitational pull of this region. It will pull in venture capital, it will pull in ideas, it will pull in intelligent people. And together create the circumstances to build a knowledge economy in order to create more jobs for our residents. That is the preoccupation of the new chamber.

Do you try to attract minorities?

This is a Chamber of Commerce-- that means to conduct itself to the benefit of all people. Good business means good opportunities and paychecks for all our residents, regardless of ethnicity.

Is Mexico a big partner?

Mexico is an immensely important trading partner. You cannot leave it to chance. This is a global marketplace. We have to learn new strokes. For our part, the Chambers that we house here and support are meant to do that in our own little way. Nothing with quite the reach of mayor or a governor. But we support that.

What is the number of Hispanic members?
We don't categorize according to ethnicity… if you want to do business, we want you as members





What can we do to build alliances with the Chamber?

You have to understand our value propositions. Spend some time with us. You are interested in linkages and network opportunities. The Chamber does a lot of things well. One of them is networking. We have the finest group of events choreographers in the region. When the President came to the port two weeks ago we put on that event. The Chilean ambassador came to talk about expanding the relationship, they called on the Chamber of Commerce.

How much does it cost to join?

Depends on what you want. We will make special arrangements.
The Hispanic community and business people have to realize that this ought to be their home.

We all want the same thing. One's background doesn't dictate what you want as a business environment. Regardless of your background you want a business environment, you want safe corners, fair tax model, work force training for residents, you want encouraging classrooms. Ethnicity doesn't drive those things. Human nature drives a lot of that, as well as the desire to have a supportive business climate. We are advocates for that. We have 5,500 members. You put together all our employers, you have 200,000 employees. We are a force. We are already a regional force. 52 percent of our members have city addresses. 48 percent have suburban addresses. Our business model has changed to the extent that now we are going to emphasize economy building measures. We already do member services well. We are involved in issues with City Council, Harrisburg, Washington, Charlotte, North Carolina, and the global marketplace. But now we are going to emphasize economy building measures, like regional business marketing. Charlotte wanted to be a financial center for the country. And they are. How? Through business identity promotion, through branding themselves that way. We are going to do the same thing. Work force development--real important here and to the folks that recruited me. You know, residents need training and retraining opportunities, and that is becoming even more attractive. [We have] employees with modern skill sets. We have to foster that. Regardless of the size of your business or your background, everyone is interested in that.

You are going to find a very hungry Latino community that is interested not just in what is happening in the neighborhood but also in what is happening in the city and the region. I think we have to tap into that interest. The Chamber is meant to be an advocate group for all.

Any plans to go back to public service?

Right now the only campaign I am involved in with my wife is raising our kids. I loved my time, but it's behind me now. We shall see. Never say never, but now it's not in the cards.

I came away from the experience even more optimistic about the wonders and the capacity of Penn residents and … with the right support and opportunities our residents can accomplish anything. Pennsylvanians make things well, and you got to tap that. We talk about branding the region. We ought to shine the spotlight on the capacity to make things well. On our diversity. And tout that as an advantage. When one contemplates the explosive growth and dependence on the Spanish language, and we are home to an awful lot of people who are bilingual. I think it translates to building bridges to the world. And this chamber has to figure a way of supporting that.

Do you have a message for the Hispanic community?

We want you to do business right here in our region and we can help. As an example I should point out that 45 percent of our members have employee counts of six and below. Small businesses. So, small businesses have a home here. That is part of our mission and emphasis. So, whatever their background they ought to see us as a harbor that provides resources and support.

That was the end of the interview and Mr. Schweiker made sure we received additional information regarding the plans he has for Philadelphia. In spite of the adverse business conditions around the region and the country his words reveal optimism and a desire to have a say in what happens around him. People like Mr. Schweiker are visionaries, people who can see through the haze of the present and imagine a better future.

Contents
Vol. 3 # 6
Signs of the times
Frank Azan: A Cuban immigrant at the helm of Health Partners
Mark Schweiker means business
Domestic politics in an international context
Lieberman Pledges to Reverse Job Losses
Fidel is still fighting the battles of the Sixties
City Year honors Harris Wofford
New energy and vision in City Council
Making the tough calls to bring about his vision
Vol 3 # 5
Rendell goes to Harrisburg
Vol 3 # 4
Remembering 9-11
Vol 3 # 3
Back Issue Coming Soon

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