Harrisburg, Pennsylvania — An Economic Profile

LEADING BUSINESSES

ALTHOUGH HARRISBURG IS PERCEIVED AS PRIMARILY HAVING A GOVERNMENT AND SERVICE-BASED ECONOMY, THE CITY’S AND THE AREA’S BUSINESS AND INDUSTRIAL PORTFOLIO IS SURPRISINGLY DIVERSIFIED, PARTICULARLY BECAUSE THIS IS A TRANSPORTATION, DISTRIBUTION, COMMUNICATIONS AND ELECTRONICS CENTER.

The Harrisburg metropolitan area serves as the corporate headquarters for several world companies including Hershey Foods Corp., Rite Aid, Inc. and Harsco Corp. as well as the AMP Division of Tyco Electronics Corporation.

Tyco Electronics Corporation is one of the largest business units of Tyco International Ltd. Tyco Electronics is the largest passive electronics components supplier in the world, and also designs and manufactures leading-edge wireless and fiber optic active components. Tyco Electronics Corporation is built upon the foundation of AMP Incorporated, as a result of the Tyco International Ltd. acquisition of AMP in 1999. The company has grown quickly through both internal growth and acquisitions of complementary products and technologies. The products supplied by Tyco Electronics are hard to see, but are virtually everywhere. They are used in cellular phones, communications switching and networking equipment, computers, instrumentation, industrial machinery, aircraft, defense systems, automobiles, household appliances and consumer electronics. Tyco Electronics employs approximately 60,000 around the world and has facilities located in 56 countries serving customers in the automotive, computer, communications, consumer electronics, industrial and power industries.

Harsco Corporation. Headquartered locally since 1853, the Harsco Corporation provides services and products to worldwide industries that are fundamental to long-term economic growth, including infrastructure development, steel and glass, and energy. Operating in nearly 40 countries with more than 20,000 employees, Harsco is the world’s leading producer of scaffolding, shoring and related access services and equipment, and a major producer of gas and fluid containment and control equipment. The company is also the technology leader in railroad track maintenance equipment and services.

Rite Aid Corporation, headquartered on Harrisburg’s west shore is the second largest retail drugstore chain in the United States based on store count, serving customers in 30 states across the country and in the District of Columbia. As of mid-2000, Rite Aid operated 3,776 stores and had a first or second place market position in 34 of the 65 major U.S. metropolitan markets in which the Company has a presence. Rite Aid operates in two business segments: the retail drug segment and the pharmacy benefit management (PBM) segment.

Hershey Foods Corporation, headquartered 11 miles east of Harrisburg in Hershey, is the leading North American manufacturer of quality chocolate and non-chocolate confectionary and chocolate-related grocery products sold in the form of bar goods, bagged items and boxed items. The corporation and its subsidiaries also manufacture grocery products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages.

IBM has a sizable operation in the Harrisburg area and has been a major service contractor for the City of Harrisburg’s automation program, supplying a wide array of hardware and software equipment along with professional maintenance and service. The introduction of this IBM technology by the City has allowed major expansion of services and improved efficiency. Harrisburg has become a national model for local governmental applications of advanced technology.

Harrisburg is also home to several major insurance companies, including Penn National Insurance, Merchants and Businessmen’s Mutual Insurance Company and Nationwide Insurance.

Metropolitan Harrisburg’s Largest Employers

Name of Company	Nature of Business	Number of Employees
Commonwealth of PA	State Government	31,200
U.S. Government	Government	11,600
Hershey Foods Corp.	Food, Food Processing	5,600
Highmark Blue Shield	Insurance	5,600
Tyco Electronics Corp.	Electronics	5,332
Hershey Medical Center	Health Care	4,251
PinnacleHealth	Health Care	3,587
EDS Corp.	Electronics	2,708
Rite Aid Corp.	Drug Stroe Retail	2,375
County of Dauphin	County Government	2,175
Fry Communications	Publishing	1,688
Capital Blue Cross	Insurance	1,661
PA Steel Technologies	Steel Manufacturing	1,500
Roadway Express	Trucking	1,500
Bookspan	Book Club	1,200
Holy Spirit Health System	Health Care	1,194
County of Cumberland	County Government	1,093
Harrisburg School District	Public Education	1,100
West Shore School District	Public Education	1,015
ABF Freight Systems	Trucking	834

Penn National Insurance, headquartered in Harrisburg since it’s founding in 1919, is among the top 100 of 1,250 property casualty insurance companies in the U.S. The company, which employs 889 people and is associated with 1,200 independent agents, does business in nine U.S. States. It has a direct-premium income of $407 million and total assets of $1 billion.

Merchants and Businessmen’s Mutual Insurance Company is a property and casualty company which has been headquartered in Harrisburg since 1895.

Nationwide Insurance is one of the largest diversified financial and insurance services providers in the United States, with over $115 billion in assets, more than 35,000 employees, and a market presence in 37 countries. Its Harrisburg office is the company’s largest Pennsylvania service center.

Harrisburg is also the home of several notable engineering firms.

Gannett Fleming, Inc. is a major US. engineering and consulting firm headquartered in metropolitan Harrisburg. The company, in consort with its nine subsidiary firms, provides consulting services in the fields of transportation, water/wastewater systems, environmental management, earth science and hydraulics, construction management, commercial, industrial and institutional planning and design, land development architecture and mechanical engineering as well as information systems. The corporation operates 45 regional offices in 23 U.S. states, Canada and Mexico.

Brinjac Engineering, which recently dedicated its crisply remodeled office headquarters at 114 N. Second St. in center city Harrisburg, is one of Pennsylvania’s leading engineering consulting firms providing services to prominent clients in civil, environmental and structural engineering, telecommunications design and management, mechanical, lighting, electrical, plumbing and fire protection engineering, and code consulting as well as security systems design. Founded in 1955 and once again named one of the Top 500 U.S. Design Firms by Engineering News Record, Brinjac Engineering also maintains fully staffed satellite offices in Philadelphia and the Lehigh Valley.

Clustered with the engineering firms are a number of exceptional and highly professional architectural firms and construction companies. Architects either headquartered in the Harrisburg area or having regional offices here include H. Edward Black & Associates (landscape architects), Hayes Large Architects, Crabtree Rohrbaugh & Associates, McKissick Associates PC and Bink Architectural Partnership. Major contractors include Wohlsen Construction Company (general), Marroquin, Inc. (masonry), Ritter Brothers (general), Alexander Constructors (general), Rogele Inc. (paving), General Electric Services Co. (electrical), and Aycock, Inc. (heavy rigging and steel erection).

Major industrial areas in Harrisburg include the Cameron Street Corridor, the Lucknow Industrial Park in the northern part of the city, and the industrial sections of the Federal Enterprise Community on Allison Hill and N. Seventh Street as well as portions of South Harrisburg. Significant businesses located in these areas include Richfood, Inc. (a major food distribution company); Sysco Food Services; Chromalloy-American Corp.; Dayton Parts, Inc. (manufacturer of heavy-grade vehicular suspension systems); W.O. Hickok Manufacturing Co., a company dating to the 1840s; E.C. Snyder, Inc. and Woodlore Builders Studio (architectural millwork companies); Schwalm & Fasolt, Inc. (cabinet manufacturer); W.S. Enterprises (appliance reconditioners); and J.K. Precision Automotive Machine Co., a national manufacturer and distributor of automotive engines, Sutliff Chevrolet Co. and the Taylor-Wharton Division of HARSCO, one of the oldest companies in the U.S., dating to 1742. Also headquartered on the Cameron Street Corridor is the Hershey Creamery Company, a full-line packaged and frozen novelty ice cream plant. Founded in 1894, Hershey Creamery manufactures and distributes through its 31 distribution centers, millions of gallons of ice cream annually to more than 28,000 retail outlets in 22 states.