2017 - 2018ANNUAL REPORT

A MESSAGE FROM OUR PRESIDENT & CEO

Since our inception, Team Pennsylvania has sought to bring the private and public sector leaders of the commonwealth together to grow our collective economy. In this unique structure, businesses and stakeholders from Penn’s Landing to Presque Isle come together with a stated purpose that Pennsylvania can be a national leader in economic and workforce development. This drives us every day and is evident in the work you see in these pages.

We are proud of what we have done over the past 12 months. Whether it was building a new partnership in agriculture or seeking to recalibrate our educational system to be responsive to business needs, we took on big projects that will seek to change our state’s economy for years to come. None of that happens without all of you. Your investment and partnership is critical for Pennsylvania to be, in the words of our founder, Governor Tom Ridge, “A leader among states, and a competitor among nations.”

Yours in Partnership,

EDUCATION

In partnership with the Pennsylvania Department of Education and the PennsylvaniaDepartment of Labor & Industry, Team Pennsylvania is working to ensure

that businesses have a career-ready workforce,and that students have the resources they need to succeed.

“Industry partners appreciated that a high

school program was being developed that could help expand their workforce

pipeline. They were enthusiastic to get involved

and open their business sites to the students.

This demonstrated that education and industry work together toward

providing students career readiness opportunities.”

Ross Berger, College and Career Academy Program Coordinator at

Harrisburg School District

In 2017, the Pennsylvania Department of Labor & Industry awarded Team Pennsylvania a Strategic Innovation Grant of $312,000 to support the Career Readiness Mini-Grant Project. The initiative sought to support regional work and incentivize greater collaboration between education and workforce development at the micro-level.

Team Pennsylvania partnered with the Pennsylvania Association of Intermediate Units (PAIU), awarding $30,000 in each of PA’s nine regions. School districts applied for up to $5,000 of flexible funding to support career readiness activities, and 65 school districts received awards.

Local Workforce Development Boards acted as critical resources for connections and information, introducing districts to regional businesses and data.

Industry and business leaders provided students first-hand experience through internships, job shadowing, and pre-apprenticeship programs.

Post-secondary entities partnered on dual enrollment programs, soft skills trainings, campus tours, and career days.

Approximately 94% of school districts grounded their projects in labor market information. Furthermore, over half of school districts indicated that the High Priority Occupation lists put out by the Pennsylvania Department of Labor & Industry informed their projects.

Application of Labor Market Information

Expansion of Partnerships

Science, technology, engineering, and math occupations are expected to grow 9.1% annually, resulting in approximately 190,000 new positions by 2026. Many districts utilized their mini-grant to implement new and creative STEM activities, such as building heat detecting drones for search and rescue teams or organizing computer programming workshops.

Investment in STEM

Early Access to Career Programming

High School(9-12)

Elementary School(K-5)

Middle School(6-8)

63%

43%

28%

71% of school districts utilized the mini-grant to enhance career readiness activities at the elementary and middle

school levels.

2017 - 2018 CAREER READINESS MINI-GRANT PROJECT

at least

students participated in a career readiness mini-grant project across the state

With 51 out of the 54 projects reporting on student participation

45,948This translates toan investment of just

$6.79 per student

In addition,39 out of the 65school districts thatreceived mini-grantshave Title 1 schools.*

60%

* Title 1 is the federal designation for at least 40% of students in the school building living in poverty.

BUSINESS GROWTH& DEVELOPMENT

Pennsylvania must remain competitive in attracting, retaining, and growing new business domestically and internationally. Team Pennsylvania is able to utilize its

unique role as a convener between its public and private partners to deploy a variety of opportunities for business growth throughout the Commonwealth.

“Team Pennsylvania

Foundation actively

identifies current economic

trends and opportunities

while developing an

informed outlook for our

state’s longterm business

and technological plan.

We have been gratified

to work with business

and government sector

leaders in advancing these

pursuits.”

Joseph A. Fitzpatrick, Jr.,

Shareholder & Founder of

Fitzpatrick Lentz & Bubba

Bringing the World to Pennsylvania

In September 2017, Team Pennsylvania provided funding and coordination in support of the annual Bringing the World to PA (BTW2PA) Trade events. This two-week tour around the state provides PA companies an opportunity to engage one-on-one with PA’s Authorized Trade Representatives and discuss international export opportunities for their products. In total, 276 companies participated, 95 of which were new clients to the trade program. This is the third BTW2PA event for which Team PA has provided full funding and support.

Team Pennsylvania partnered with Pennsylvania’s Department of Community and Economic Development (DCED) to sponsor and organize a delegation to participate in the National Plastics Expo in Orlando Florida, May 7-11, 2018. Meetings with key business development prospects such as Shell, Braskem, Sekisui, Kennemetal, and Greiner were conducted during the event, which hosted over 65,000 professionals. Through the meetings and networking events at the Expo, Team Pennsylvania worked to promote Pennsylvania as a strong place for the plastics industry to invest in and thrive. This work is a result of the implementation strategy from last year’s report on petrochemical opportunities in Pennsylvania.

Working alongside DCED and Shell Oil Company’s Global Energy Scenarios Team, Team PA served as convener for the Pennsylvania Energy Horizons work to develop scenarios to inform PA’s energy strategy. Prompted with the question, “How might Pennsylvania’s energy system evolve over the next 25 years, and what might it mean for Pennsylvanians?” this project built two divergent pathways that the Commonwealth’s energy system might follow between now and 2040. This year-long collaborative initiative lays out the Rivers & Roots Scenarios.

European Business Development Mission

In support of Pennsylvania’s Office of International Business Development (OIBD), Team Pennsylvania led the coordination of a strategic multi-city mission to develop new prospects, engage partners and multipliers, and conduct retention visits with existing PA investors. From May 23 through June 6, presentations, meetings, and networking events were conducted in more than 10 unique European cities. Working in partnership with the Philadelphia Orchestra in Dusseldorf and Vienna, the team leveraged its relationship with the renowned orchestra as a catalyst to demonstrate what opportunities and assets exist for business growth and expansion in Pennsylvania. Since 2015, Team Pennsylvania has built upon this relationship to further direct foreign investment initiatives on behalf of OIBD and regional partners.

INTERNATIONAL ACCOMPLISHMENTS

PLASTICS

ENERGYCOLLISIONS AND TRANSITIONS

How mightPennsylvania’senergy systemevolve over thenext 25 years?

And what mightit mean for

Pennsylvanians?

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2040

AGRICULTURE

By working together, Pennsylvania’s Department of Agriculture and Team Pennsylvaniawill advance Pennsylvania’s agriculture sector and grow the commonwealth’s

presence in regional, national, and global marketplaces — ensuring this industry remainsa vibrant part of our state for generations to come.

PENNSYLVANIA AGRICULTURE’SECONOMIC IMPACT

$ 135 .7BILL IONANNUAL ECONOMIC IMPACT

About 18% of totalgross state product!

$83.7 BILLION DIRECT$27.8 BILLION INDIRECT$24.1 BILLION INDUCED

ECONOMIC IMPACT & TRENDS REPORT

STRATEGIC RECOMMENDATIONS

1. Capitalize on branding and marketing opportunities;

2. Expand on agricultural infrastructure, such as processing and manufacturing capacity;

3. Continue improving regulatory processes and the business climate;

4. Broaden workforce development and education opportunities;

5. Make additional investments in infrastructure systems like transportation and broadband;

6. Diversify products to strengthen markets and build resiliency.

In January 2018 at the 102nd Pennsylvania Farm Show in Harrisburg, Team Pennsylvania and the Pennsylvania Department of Agriculture (PDA) unveiled “Pennsylvania Agriculture: A Look at the Economic Impact and Future Trends.” The report, developed by Philadelphia-based Econsult Solutions and Temple University’s Fox School of Business, provides – for the first time – a detailed look at the direct and indirect impact of agriculture on Pennsylvania’s economy.

The report also contains a set of six strategic recommendations for policy and industry to advance Pennsylvania agriculture. The report and recommendations will continue to guide the work of the Agriculture Advisory Board in action oriented sub-committees developed and led by champions of the industry.

Team Pennsylvania, Pennsylvania Department of Agriculture, and agriculture industry stakeholders recognized the importance of ensuring longterm sustainability of the agriculture public-private partnership. Thus, Team PA and PDA began the cooperative pursuit of hiring a devoted full-time staff person to manage the portfolio of strategic agriculture initiatives. Working together, several private-sector investors pledged contributions in support of the position, demonstrating a commitment to and an investment in a prosperous future for the commonwealth’s agriculture industry.

Team PA officially welcomed a full-time Manager of Agriculture Policy & Programs in May 2018. The cornerstone of the role is to facilitate new opportunities for economic growth that address needs of the industry through its integration into PDA’s Executive Office and facilitation of the Agriculture Advisory Board.

AGRICULTURE ECONOMIC IMPACT AND TRENDS REPORT

NEW MANAGER OF AGRICULTURE POLICY & PROGRAMS

WORKFORCEDEVELOPMENT

Team Pennsylvania recognizes that a healthy economy depends on ahealthy workforce. We listen to the needs of business and industry, and ground

our work in aligning our education, workforce, and economic development systems.

With the transition to the Next Gen Industry Partnership model in fiscal year 2017-2018, the commonwealth funded 15 Next Generation Industry Partnerships through a competitive grant process. Additionally, five unfunded partnerships have launched across the commonwealth.

PARTNERSHIPS HAVE LAUNCHED IN THE FOLLOWING SECTORS:

Advanced Manufacturing – 8

Agriculture & Food Processing – 1

Business Services (IT) – 1

Energy – 1

Healthcare – 5

Hospitality, Leisure & Entertainment – 1

Logistics & Transportation – 2

COMMON THEMES:

Providing career awareness activities and talent development (training, retention, career pathways, etc.)

Business-to-business networking, regional marketing to business and workers, and joint advocacy efforts.

To bring more resources to the commonwealth’s workforce development community, Team Pennsylvania continued to advance Next Generation Industry Partnerships in the commonwealth. Pennsylvania’s economic vitality depends on creating an ecosystem where businesses have what they need to succeed while our workforce is prepared with in-demand skills. This requires an active, authentic, and engaged partnership from industry coupled with alignment across workforce and economic development efforts to ensure that we are collectively addressing the most critical needs of our regional economies. Next Generation Industry Partnerships serve as a venue for businesses to tackle the shared competitive needs of their sector—including, but not limited to, workforce issues, with support from public partners from workforce development, economic development, and education.

Starting in December 2017, a cross-agency state team met to develop proposed statewide and regional metrics for Next Generation Industry Partnerships. Over multiple meetings, the team developed a list of priority indicators of success in three categories: workforce, economic, and partnership engagement. Team Pennsylvania serves on that cross-agency state team and partners with national efforts to build capacity within the commonwealth.

NEXT GENERATION INDUSTRY PARTNERSHIPS

Credit: Next Generation Sector Partnership Community of Practice

BUSINESSTABLE

BusinessChampions

K-12CommunityColleges

COMMUNITY PARTNERS

Universities

Adult BasicEducation

Community-BasedOrganizations

EconomicOrganizations

WorkforceSolutions

Convener

“A group of manufacturers

came together to figure out

how to promote manufacturing

in our region not just because it

helps our business but because

it helps the economic vitality of

Berks County.”

Karen Norheim, Executive Vice President

American Crane & Equipment Corporation

Pedro Anes President, Inpact Learning, LLC Scranton, PA

Anthony Bartolomeo 2 (Assumed co-chair position

June 6, 2018)

President & CEO, Pennoni Associates, Inc. Philadelphia, PA

James Becker President, PEDA Harrisburg, PA

David Black President & CEO, HBG Regional Chamber & CREDC Harrisburg, PA

Honorable John Blake Senator, Pennsylvania State Senate Scranton, PA

Heather Chandler President, Sealstrip Corporation Gilbertsville, PA

Honorable Dennis Davin Secretary, Dept. of Community & Economic Development Harrisburg, PA

Lisa Dell’Alba President & CEO, Square One Markets, Inc. Bethlehem, PA

Vince Delie President & CEO, First National Bank Corporation Pittsburgh, PA

Wendie DiMatteo Holsinger 4 CEO, A.S.K. Foods, Inc. Palmyra, PA

Joe Fitzpatrick Founding Member & Shareholder, Fitzpatrick Lentz & Bubba Center Valley, PA

Honorable Matt Gabler Representative, Pennsylvania House of Representatives DuBois, PA

Thomas B. Hagen 4 Chairman & Owner, Custom Group Industries Erie, PA

Bruce Heugel Senior Vice President, B. Braun Medical Inc. Bethlehem, PA

Bobbi Kilmer President & CEO, C&T Enterprises Lewisburg, PA

Honorable Patty Kim Representative, Pennsylvania House of Representatives Harrisburg, PA

Dave Kleppinger 3 Chairman, McNees Wallace & Nurick LLC Harrisburg, PA

Jason Klipa Director of Public Affairs, Walmart Hummelstown, PA

Michael Kraft Senior Vice President & General Manager, Lycoming Engines Williamsport, PA

Tom Lynch Chairman & CEO, TE Connectivity Berwyn, PA

H. Glenn “Bub” Manning Principal, Quandel Construction Group, Inc. Harrisburg, PA

Ken Mash President, APSCUF Harrisburg, PA

2017 - 2018 BOARD OF DIRECTORS

Linda Moss President of PA Operations, FirstEnergy Reading, PA

Morgan O’Brien President & CEO, Peoples Natural Gas Pittsburgh, PA

Honorable Jerry Oleksiak Secretary, Dept. of Labor & Industry Harrisburg, PA

Honorable Russell Redding Secretary, Dept. of Agriculture Harrisburg, PA

Jay Ridder Coordinating Partner, Ernst & Young Philadelphia, PA

Julian Ritchey Head of Vaccine Public Affairs & Advocacy, Sanofi Pasteur Swiftwater, PA

Honorable Pedro Rivera Secretary, Dept. of Education Harrisburg, PA

John Robinson Vice President, Northern Region Air Products Allentown, PA

Doug Rohrbaugh Founder & Principal, Crabtree, Rohrbaugh & Associates Architects Mechanicsburg, PA

Honorable Mario Scavello Senator, Pennsylvania State Senate Tannersville, PA

Scott Sechler Chairman & President, Bell & Evans Fredricksburg, PA

Melissa Shafer Assistant Vice President of Government Relations & Community Affairs, St. Luke’s University Health Network Bethlehem, PA

Don Siegel International Vice President, IBEW 3rd District Coraopolis, PA

Art Stephens Managing Director, Deloitte Harrisburg, PA

Stephen S. Tang, Ph.D., MBA 1 President & CEO, University City Science Center Philadelphia, PA

Dionne Wallace Oakley Senior VP of Human Resources, Erie Insurance Erie, PA

Michael Walton CEO, Jamestown Coating Technologies Jamestown, PA

Brent A. Ward President & Owner, Integrated Fabrication & Machine, Inc. Greenville, PA

Karen Winner Sed 4 President & CEO, Winner International Sharon, PA

Honorable Tom Wolf 1 Governor, Commonwealth of Pennsylvania Harrisburg, PA

Susan Yee CEO, Active Data, Inc. Bethlehem, PA1 Co-Chair; 2 Vice Chair; 3 Secretary; 4 Director Emeritus

TERMS ENDING IN FISCAL YEAR 2017-2018

Katherine Bishop

David Gruno

“Chip” Loren D. Prescott

Roger Richards

2017 - 2018 BOARD OF DIRECTORS

FINANCIALS

PROGRAM-SPECIFICUNRESTRICTED ENDOWMENT

2016 - 2017 total

$10,439,345

1,275,205

2,840,037

5,905,197

418,906

2017 - 2018 total*

$10,087,697

1,058,404

2,825,160

6,043,414

160,719

OTHER INVESTMENTS

*based on unaudited financials

Available Funds

INVESTORS

1st Summit Bank

Air Products & Chemicals, Inc.

Alpha Precision Group

APSCUF State Office

B. Braun Medical Inc.

Claverack Rural Electric Cooperative

Community Commonsense Education Fund

Crabtree Rohrbaugh & Associates Architects

David E. Black

Erie Insurance Company

Ernst & Young, LLP

First National Bank

FirstEnergy Corporation

Fitzpatrick Lentz & Bubba, P.C.

Gannett Fleming

Glatfelter Insurance Group

IBEW Third District Office

Insight Partners

Integrated Fabrication & Machine, Inc.

McNees Wallace & Nurick LLC

PEDA

Pennoni Associates, Inc.

Quandel Constuction Group

Richards & Associates

Sanofi Pasteur

Sealstrip Corporation

Shipley Energy Group

University City Science Center

Wilkes University

Winner International, Inc.

“The success of Pennsylvania depends heavily on collaboration between business,

political, and civic leadership, which is another key reason FNB supports Team Pennsylvania.”

Vincent J. Delie, Jr., CEO & President of First National Bank

240 N. 3rd Street, 2nd FloorHarrisburg, Pennsylvania 17101

TeamPA.com • 717.233.1375 • @TeamPA

WORKING. TOGETHER.