Presenting Sponsors Corporate Sponsors

Media Sponsors

2013ECONOMIC FORECASTCenterState New York

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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 you’ll find that the 2013 CenterState CEO Economic Forecast provides a unique perspective on your sector and our region that

can’t 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 year’s report. I look forward to working with you as we strive for a prosperous 2013.

Robert M. Simpson

President, CenterState CEO

CONTENTSContentsCEO 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

3

CEO FORECASTERS’ OUTLOOKCEO Forecasters’ Outlook

Focus groups reported the following:

2012 PERSPECTIVE

What were your business growth projections for 2012?

Significant Growth 17%

Slight Growth 54%

Flat 25%

Somewhat Down 4%

Significantly Down 0%

What was 2012 actually like for your organization?

Significant Growth 25%

Slight Growth 38%

Flat 22%

Somewhat Down 14%

Significantly Down 1%

How did your organization’s growth compare with your sector peers in 2012?

Better Than 39%

Same As 55%

Not as Favorable 6%

2013 OUTLOOKWhat are your projections for 2013 as to:

JOB GROWTH Decrease 4%

CAPITAL INVESTMENT Decrease 8%

SALES/REVENUE Decrease 2%

PROFITS Decrease 6%

COMPANY GROWTHWill you expand products or services?

Increase 50% Increase 47%

Increase 74% Increase 61%

Flat 46% Flat 45%

Flat 24%

Flat 33%

Yes 76%

No 24%

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IntroductionEvery 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.

Region InfoFor this analysis, the CenterState New York region is defined to be the twelve counties

surrounding the Syracuse market. This area encompasses the following counties:

Cayuga

Cortland

Herkimer

Jefferson

Lewis

Madison

Oneida

Onondaga

Oswego

St. Lawrence

Seneca

Tompkins

Industry Summary

Basic Information

2012 Industry Jobs 638,559

2016 Industry Jobs 644,997

Total Growth 6,438

Total % Growth 1.01%

2012 Average Earnings per Worker $40,213

Occupational Summary

Basic Information

2012 Occupational Jobs 618,136

2016 Occupational Jobs 624,246

Total Growth 6,110

Total % Growth 0.99%

Openings 78,721

2012 Median Hourly Earnings $19.31

Modest Job Growth Expected for Syracuse, NY MSAAccording 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 Decrease Staff Levels Maintain Staff Levels Don’t Know Net Employment Outlook

SyrMSA U.S. SyrMSA U.S. SyrMSA U.S. SyrMSA U.S. SyrMSA U.S.

Q1 2013 12% 17% 7% 8% 79% 72% 2% 3% 5% 9%

Q4 2012 18% 17% 11% 9% 68% 72% 3% 2% 7% 8%

Q1 2012 13% 14% 6% 9% 73% 70% 8% 7% 7% 5%

*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.

MARKET ANALYSIS OF CENTERSTATE NEW YORKMarket Analysis of CenterState New YorkPrepared by

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.

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2012-2016 CenterState NY Industry Size and Growth

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.

Description 2012 Jobs 2016 Jobs Growth % Growth 2012 EPWAgriculture, natural resources, and mining 4,950 4,954 4 0% $32,549Construction 19,834 19,625 -209 -1% $48,406Education and health services 119,175 129,897 10,722 9% $42,131Financial activities 28,908 27,523 -1,385 -5% $51,508Government 156,954 159,012 2,058 1% $44,009Information 8,044 7,288 -756 -9% $48,758Leisure and hospitality 57,740 60,309 2,569 4% $14,638Manufacturing 53,315 46,439 -6,876 -13% $55,939Other services 18,946 19,147 201 1% $23,841Professional and business services 52,685 53,949 1,264 2% $45,877Trade, transportation, and utilities 118,008 116,852 -1,156 -1% $34,334

Total 638,559 644,997 6,438 1% $40,213

Source: EMSI Covered Employment - 2012.3

PREPARED FOR CENTERSTATE CEOPrepared for CenterState CEOA

vg E

arn

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ork

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$65000

$60000

$55000

$50000

$45000

$40000

$35000

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$25000

$20000

$15000

$10000

$5000

$0-20% -10% 0% 10% 20%

2012 - 2016 % GrowthBubble size represents 2012 jobs in each supersector

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

Prepared by

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MARKET ANALYSIS OF CENTERSTATE NEW YORKMarket Analysis of CenterState New York2012 CenterState NY Industrial Makeup

Description 2012 Regional Jobs % Regional Jobs 2012 State Jobs % State JobsAgriculture, natural resources, and mining 4,950 0.8% 27,818 0.3%Construction 19,834 3.1% 300,948 3.5%Education and health services 119,175 18.7% 1,636,965 18.9%Financial activities 28,908 4.5% 684,791 7.9%Government 156,954 24.6% 1,508,435 17.4%Information 8,044 1.3% 247,952 2.9%Leisure and hospitality 57,740 9.0% 789,124 9.1%Manufacturing 53,315 8.3% 456,098 5.3%Other services 18,946 3.0% 327,123 3.8%Professional and business services 52,685 8.3% 1,186,661 13.7%Trade, transportation, and utilities 118,008 18.5% 1,507,831 17.4%

Source: EMSI Covered Employment - 2012.3

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.

% Regional Jobs30%

25%

20%

15%

10%

5%

0%

Agricultu

re, natu

ral

reso

urces, and m

ining

Constructio

n

Education and health

serv

ices

Financial activ

ities

Governm

ent

Inform

ation

Leisure

and hospita

lity

Manufactu

ring

Other s

ervices

Professi

onal and

business

serv

ices

Trade, transp

ortatio

n,

and utilitie

s

% State Jobs

20

12

Ind

ust

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rsPrepared by

7

PREPARED FOR CENTERSTATE CEOPrepared for CenterState CEOIndustry Sector Change Summary (at 2-digit NAICS)

Description 2012 Jobs 2016 Jobs Change % Change2012

Average Earnings2011

EstablishmentsRegional Total 638,559 644,997 6,438 1% $40,213 34,569State Total 8,673,746 8,782,835 109,089 1% $61,380 562,988National Total 134,222,034 139,805,804 5,583,770 4% $47,890 8,934,142

Source: EMSI Covered Employment - 2012.3

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).

NAICS Code Description

2012 Jobs

2016 Jobs

2012 Average Earnings

2011 Establishments

11Agriculture, Forestry, Fishing and Hunting

4,247 4,271 $29,115 434

21Mining, Quarrying, and Oil and Gas Extraction

704 683 $53,270 61

22 Utilities 4,699 4,864 $104,623 8723 Construction 19,834 19,625 $48,406 3,54431-33 Manufacturing 53,315 46,439 $55,939 1,35242 Wholesale Trade 20,867 20,425 $54,581 1,66244-45 Retail Trade 76,171 75,195 $23,557 5,13348-49 Transportation and Warehousing 16,271 16,367 $38,521 77851 Information 8,044 7,288 $48,758 54052 Finance and Insurance 22,676 21,356 $56,537 1,78253 Real Estate and Rental and Leasing 6,232 6,167 $33,209 1,290

NAICS Code Description

2012 Jobs

2016 Jobs

2012 Average Earnings

2011 Establishments

54Professional, Scientific, and Technical Services

24,968 26,445 $57,311 2,788

55Management of Companies and Enterprises

4,549 4,301 $67,164 219

56 Administrative and Support Services 23,168 23,203 $29,375 1,55361 Educational Services (Private) 33,535 35,177 $50,017 32262 Health Care and Social Assistance 85,640 94,720 $39,043 3,59571 Arts, Entertainment, and Recreation 7,335 8,086 $16,523 68872 Accommodation and Food Services 50,405 52,223 $14,364 3,519

81Other Services (except Public Administration)

18,946 19,147 $23,841 3,460

90 Government 156,954 159,012 $44,009 1,762Total 638,559 644,997 $40,213 34,569

Industry Breakdown (at 2-digit NAICS)

Regional Growth Rate State Growth Rate National Growth Rate

5%

4%

3%

2%

1%

0%2012 2013 2014 2015 2016

20

12

- 2

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6 %

Ch

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Prepared by

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CENTERSTATE NEW YORK EXPORT OUTLOOKCenterState New York Export OutlookThe 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.

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.

Do you currently export a product or service?

Yes 76%

No 24%

If yes, what % of your business is in exports?

Respondents

≤5%

6-10%

11-20%

21-30%

≥50%

35%

31%

7%

17%

10%

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

region’s exports

goals, the CenterState

Metropolitan

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.”

“We will continue to be involved with CenterState CEO discussions

to target the Canadian market for medical tourism.”

“Our company plans to export in 2013 after launching a new line of services.”

Companies in the CenterState region export to:

9

AgribusinessFarmers 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.

Energy & Environmental SystemsChina 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.

CENTERSTATE NEW YORK EXPORT OUTLOOKCenterState New York Export OutlookForecasters reported the following observations about export trends in their sector:

Government & Economic DevelopmentThere is still a demand for improved local, state

and federal programs to assist in growing exports

as outlined in the CenterState Metropolitan

Export Initiative.

Health CareGrowth of medical tourism presents an opportunity

for the region’s 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%.

Higher EducationCampuses 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

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.

Small Business & Professional ServicesDespite the market opportunities abroad,

businesses are often hesitant to commit to

exporting due to politics and the economy.

Technology & CommunicationsCompanies 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.

TourismDespite the regional tourism industry being

one of the region’s 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.

TransportationExport 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.

“We are trying to help companies start commerce with China, but

people seem scared to commit due to politics and the economy.”

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

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AGRIBUSINESSAgribusinessTRENDS 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.

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.

Photo courtesy of Owera Vineyards

11

BANKING, FINANCE & INSURANCEBanking, Finance & InsuranceOUTLOOK FOR 2013Opportunities

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.

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.

12

CONSTRUCTION & REAL ESTATEConstruction & Real Estate

OUTLOOK FOR 2013Opportunities

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.

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.

Photo courtesy of St. Joseph’s Hospital Health Center

13

ENERGY & ENVIRONMENTAL SYSTEMSEnergy & Environmental SystemsTRENDS 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 2013Opportunities

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.

14

GOVERNMENT & ECONOMIC DEVELOPMENTGovernment & Economic DevelopmentOUTLOOK FOR 2013Opportunities

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 Alliance’s (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.

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.

15

HEALTH CAREHealth Care

OUTLOOK FOR 2013Opportunities

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 patient-

centered medical homes; investment by the state and

federal government into these new models of patient-

centered 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.

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.

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. Joseph’s 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.

16

HIGHER EDUCATIONHigher EducationOUTLOOK FOR 2013Opportunities

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 “non-

traditional” 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.

TRENDS IN 2012 Changes in families’ economic status following

the recession and the cost of higher education are

a concern; families can’t 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 non-

traditional faculty, e.g. adjuncts and “professors of

practice” in instructional roles.

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 don’t 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 under-

represented 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.

17

HUMAN SERVICES, NOT-FOR-PROFITS & THE ARTSHuman Services, Not-for-Profits & the ArtsOUTLOOK FOR 2013Opportunities

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.

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.

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 people’s 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.

18

MANUFACTURINGManufacturingOUTLOOK FOR 2013Opportunities

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.

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.

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.

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 Pall Corporation

Photo courtesy of Novelis

19

SMALL BUSINESS & PROFESSIONAL SERVICESSmall Business & Professional ServicesTRENDS 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 2013Opportunities

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 there’s 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.

20

TECHNOLOGY & COMMUNICATIONSTechnology & 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

didn’t always translate to new clients/customers, even

when greater efficiencies are offered.

Finding qualified software engineers remained a challenge.

OUTLOOK FOR 2013Opportunities

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.

21

TOURISMTourismOUTLOOK FOR 2013Opportunities

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 region’s 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.

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.

Challenges The most unsettling challenge for the area’s 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.

22

TRANSPORTATIONTransportationOUTLOOK FOR 2013Opportunities

Increasing numbers of Canadians using Syracuse’s 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.

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 Syracuse’s

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.

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 Syracuse’s 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.

23

REGIONAL PROJECTSRegional Projects

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 Arby’s 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

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 Pall’s 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

Projects Driving Growth for CenterState New York in 2013The 12-county CenterState region received $137.6 million for 180 catalytic projects in the second round of the state’s 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 CenterState Counties Total Awarded # of Projects

Central New York Cayuga, Cortland, Madison, Onondaga, Oswego $93,751,565 73North Country Jefferson, Lewis, St. Lawrence $24,688,010 48Mohawk Valley Herkimer, Oneida $11,617,610 46Southern Tier Tompkins $6,656,790 11Finger Lakes Seneca $875,000 2TOTAL $137,588,975 180

Photo courtesy of Pall Corporation

Photo courtesy of Soules & Dunn Development Corporation

24

REGIONAL PROJECTSRegional ProjectsEmpire 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: $1,029,250Award Amount: $550,000 Jobs: 75 new; 30 construction

Sibley’s Building Redevelopment (Onondaga County)The former Sibley’s 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: $18,744,599Award Amount: $2,500,000Jobs: 42 construction

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: $30,200,560Award Amount: $2,000,000Jobs: 150 new; 339 construction

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: $1,029,250Award Amount: $500,000

Jobs: 30 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

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

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-of-

way to a boulevard-style design, and

creation of additional parking.

Total Project Cost: $2,400,000

Award Amount: $250,000

25

REGIONAL PROJECTSRegional ProjectsNorth 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

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 co-

operatives, schools, colleges, hospitals and other institutions.

Award Amount: $350,000

Jobs: 15 new

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

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

Photo courtesy of The Post-Standard/Stephen Cannerelli

26

THANK YOU FORECASTERSThank You ForecastersBob Allen

Crouse Hospital

JB AllredAllred & Associates, Inc.

Nathan AndrewsMorse Mfg. Co., Inc.

Debra AngaranoTsys Merchant Solutions

Alessandro A.E. AnzaniWavElectric

Kim ArmaniSUNY Oswego Metro Center

John ArquetteJohn Arquette Properties

Michael AtkinsOffice of New York State Assemblyman Sam Roberts

Stephen BaileyMillennium Transportation

Mary Anne BarringtonChadwick Residence, Inc.

Chris BelnaA La Carte Business Services

Rob BenettiWoodbine Hospitality

Michelle BerryCourtney Consulting Enterprises, LLC

Mark BethmannThe Bell Group, LLC

Khalid BeySyracuse Common Council

Sara BollingerHealtheConnections

Beth BroadwayInterFaith Works

William BrodSyracuse New Times and Family Times

Eileen BrophyBrophy Services, Inc.

Todd BuchkoWonderWorks

Dean BurrowsNixon Gear

Amy Casper Ephesus Technologies

David ChalkerSun BD Corporation

George ChapmanGW Chapman Consulting

Peter ChappellChappell Farms

Jason ChiesaEmpire State Development

Matthew ClarkCazenovia College

Dan ClearyCortland Beer Company, LLC

Edward CoatesNorwich Bank and Trust

Gregory CohenEBS-RMSCO, Inc.

Dan ColasantiAdStreamer, Inc.

Mario ColoneSyracuse Metropolitan Transportation Council

Samuel ConleyThe Whitacre Engineering Co., Inc.

Jon CooleySyracuse Sports Corporation

David CotterRarely Done Productions

Michael CrinninAIDS Community Resources, Inc.

Bill CulleyEmpire Robotics, Inc.

Patrick DaileyFust Charles Chambers, LLP

Matthew DaRinBluepoint Environmental, LLC

Ray DavisSharenet

Arthur DelaneyDelaney Moving & Storage, Inc.

Louis DeMent Jr.Giovanni Food Co., Inc.

Victor DiserioHaylor Freyer & Coon, Inc.

Sue DoveSkaneateles Chamber of Commerce

Gino DucaSalt City Technical

Paul DugalCaz Limo & Tours

Scott EbnerOnondaga Case Management Services, Inc.

Deborah EmersonCentral NY Library Resources Council

Robert FancherCrown Risk Management, LLC

Maureen FellowsSUNY College of Environmental Science & Forestry

Joseph FerraroThe Shaker Group, Inc.

Michael FinnCBR Real Estate

Andrew FishCayuga County Chamber of Commerce

James FishClarkson University

William FisherOffice of Onondaga County Executive Joanie Mahoney

Kim Fortin4 Tin Fish Farms

Stephen FournierKeyBank

Michael FrascielloUniversity College Syracuse University

Pat FratangeloOnondaga Community Living

David FreundSelflock Screw Products

William GageEastern Managed Print Network

Daniel GardnerRich & Gardner Construction Co., Inc.

Mike GillespieSUNY Empire State College

Bea GonzalezUniversity College Syracuse University

Susan GorskiJetBlue

Chris GrayTurner Construction

Ellen GriffinFleet Feet Sports Syracuse

Jeff GrimshawSUNY Oswego

Sam HainesGear Motions, Inc.

Earl HallSyracuse Builders Exchange

Kevin HannaAT&T

Rose HapanowichDestiny USA

Larry HarrisSaab Sensis

Isabelle HarrisOffice of New York State Senator John DeFrancisco

Charlene HartOncenter

Lee Henderson PhDVybion

Kevin HerlihyWatervale Farms

Spike HerzigThe Herzig Group, Inc.

Mark HettlerTestone Marshall & Discenza, LLP

David HeymannSheraton Syracuse University/Greater Syracuse Hospitality & Tourism Assoc.

Richard HezelHezel Associates, LLC

Gerald HoffmanOnondaga County Medical Society

Michael HowellS&W Services, Inc.

Michael JohnsonJohnson Brothers Lumber Co.

27

THANK YOU FORECASTERSThank You ForecastersRichard Kampas

Green Cleaning Technologies, LLC

Mason KaufmanMeals on Wheels of Syracuse

Teandra Kelly-LewisSaks Fifth Avenue OFF5TH

Barnett KlaneAmplifyU

Jeremy KlemanskiSyracuse Behavioral Healthcare

Amy KremenekOnondaga Community College

Ron KrukowskiTurner Construction

Ralph KrutulisADIO Health Systems

Mike KuhnMohawk Global Logistics

Richard KunzCNY Commercial Trucks/DeLacy Ford

Rich LanderkinCentral New York Regional Transportation Authority (Centro)

Daniel Paul Larson PhDCayuga Community College

W. Donald LempM. Lemp Jewelers

Lisa LoftusKing + King Architects

Bryan LuceReliance Funding Group, Inc.

Mac MacMurrayC&S Companies

William B. MagnarellliNew York State Assembly

Peter MaierINFICON

Nick ManciniUpFront

Michael ManciniSUNY Empire State College

Susan MarzolinoMarz Farm

Terence MastersonCayuga Economic Development Agency

Kemper Matt Jr.Dupli Envelope & Graphics

Toni MaxwellCatholic Charities of Onondaga County

Steve McCormickAnheuser-Busch, LLC

Stewart McGoughScolaro, Shulman, Cohen, Fetter & Burstein, P.C.

Jake McKennaParsons & McKenna Construction Co.

Tom McKeownARISE

Steve McMahonCortland Research, LLC

Shreefal MehtaPaper Battery Company

David MillerJADAK, LLC

Neil MillerFinger Lake Organic Growers Corporative

Patrick MohrEastwood Litho, Inc.

Bernhard MolldremLaw Office of Bernhard Molldrem

Dave MoreauGeoreader, LLC

Kristen Mucitelli-HeathSt. Joseph’s Hospital Health Center

Neil Murphy PhDSUNY College of Environmental Science & Forestry

Allen NaplesM&T Bank

Diana NapolitanoSyracuse University

Louis NeuburgerDonald J. Fager & Associates, Inc.

Sam NotaroRenAir

Alina OsbahrThe Eraser Company, Inc.

Laura PedersonPederson Farms

Stanfort PerryArc of Onondaga

Eric PersonsSyracuse University

David PittardBeak & Skiff Apple Farms

Michael QuigleyGlypher

Kathy RappOnondaga County Legislature

Samuel D. RobertsNew York State Assembly

Maryann RoefaroHematology-Oncology Associates of CNY

Angelo RoefaroOffice of U.S. Senator Charles Schumer

Beth RougeuxCity of Syracuse

Kathryn RuscittoSt. Joseph’s Hospital Health Center

Seth RutledgeBioChar Heating

David SchneckenburgerThompson & Johnson Equipment Co. Inc

Tim ShaughnessyRapid Cure Technologies, Inc.

Ross SheckleriCone Products Calmar Research

Thomas ShepherdDairylea Cooperative, Inc./Agri-Edge Development

James ShomarSolstice

Crista ShopisSynairco

Eric SmithUpstate Medical University

Michael SokolovAyguo

Roger StackpooleLe Moyne College

Ken SteigerSteiger Training & Development

John StepienAmerican Express/New York State Restaurant Association

James StewartTelligen

Albert A. Stirpe Jr.New York State Assembly

Todd SullivanTech Bridge International

Carol Sweet Arts and Cultural Leadership Alliance

Dale SweetlandARMtech Insurance Services

Craig SwieckiOffice of New State, State Assemblyman William Magnarelli

Rosie TaravellaAmerican Red Cross

Kenneth TockMacKintok, Inc.

Brett TruettSoftNoze USA, Inc.

Scott VinciguerraColumbia College

John WakefieldEmpower Federal Credit Union

Michael Wetzel PEAir Innovations

Sarah WilesMid Lakes Navigation

Heather WoodAmeriCU Credit Union

Ron WoytanBusiness Systems of CNY

Terry ZarnowskiSchneider Packaging Equipment Co., Inc.

Gary ZausmerZausmer-Frisch, Scruton & Aggarwal, Inc.

572 South Salina Street • Syracuse, NY 13202315.470.1800 • www.centerstateceo.com