The Tribune Democrat - Cambria Region Lands Foreign-Trade Zone Status

News Article

By Kecia Bal

In what politicians described as a "victory" for the region, Cambria, Blair and Bedford counties officially are a U.S. foreign-trade zone, meaning companies who participate and operate globally can realize discounted -- or eliminated -- import and export duties before products hit the U.S. marketplace.

Cambria County Economic Development Authority members said Wednesday that achieving foreign-trade zone status has been the No. 1 priority for the 2-year-old organization.

The authority received word this week that the application had received final approval, with a signature from U.S. Secretary of Commerce Penny Pritzker, authority Executive Director Nick Felice said.

"This levels the playing field with other countries that might be doing business in the U.S.," Felice said.

Senator Pat Toomey, U.S. Rep. Keith Rothfus, R--Sewickley, and U.S. Rep. Bill Shuster, R-Hollidaysburg, all applauded the creation of the FTZ in a news release issued by Rothfus' office.

"The establishment of Foreign-Trade Zone 295 is a significant victory for Western Pennsylvania that will facilitate international business opportunities and enable our region to become more competitive. Many were involved in this effort at the federal, state, and local levels, and I am thankful for their dedication. FTZ 295 is going to play an important role in stimulating increased economic activity, creating jobs, and facilitating trade in our region," Rothfus said.

"After working with the Administration on a bipartisan basis, local manufacturers and job creators in Bedford, Blair, and Cambria Counties now have access to a foreign-trade zone. There are seven other foreign-trade zones in Pennsylvania that help American employers by allowing them to pay reduced tariffs on their manufacturing inputs. Businesses across Pennsylvania have used foreign-trade zones for decades, but -- before today -- Johnstown area businesses were unable to use them," Toomey said.

The zone can offer a cash-flow advantage for companies who import a great deal of raw material, component parts or finished goods, allowing them to hold onto cash longer and elongate importing expenses. Those manufacturing-specific benefits also play into the Greater Pittsburgh Metals Manufacturing Community designation by the U.S. Department of Commerce, announced last summer, Felice said.

"This affords manufacturers the opportunity to augment their supply chain in a more affordable fashion, keeping them healthy and helping to preserve and create jobs here," Felice said.

Authority members also hope to use it as a method to lure new companies to set up shop locally, he said.

"We want to see how it can act as a recruitment tool on the retention side and move us ahead from an international business standpoint," he said. "That kind of international commerce is good for Johnstown and Cambria County. We want to get out there and actively market that."

"We were able to establish this foreign-trade zone because everyone at the county, state, and federal level worked together with one shared goal -- improving our region's economy to benefit the people of southwestern and central Pennsylvania," Shuster said. "I look forward to seeing the positive impact this will have for our businesses, and I thank everyone that was involved in getting this across the finish line."

Felice said the announcement highlights the importance of the authority, established in 2013 to assist in the development and implementation of the zone for Cambria County.

Though Felice and others have held information sessions with local companies on the perceived benefits of zone status, now the real work can begin, he said.

"My first order of business will be working in the region to get all counties signed up," Felice said. "Companies have to evaluate if it makes sense to them. We won't know until we sit down and go over the numbers. Now that it's ours, we can actively do that."

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