Philadelphia | Capital Analytics Associates

Spotlight on: Chad Dobbs, General Manager for Pennsylvania, Uber

Writer: Yolanda Rivas

2 min read JULY 2019 — Ride sharing is here to stay. Although the concept is not new, it has gained significant popularity over the last few years. According to Statista, a survey indicated that 36% of 11,000 participants in the U.S. used ride sharing services in 2018, an increase from 15% in 2015. Our ‘Spotlight on’ for this week, Uber’s general manager for Pennsylvania Chad Dobbs, shared with Invest: Philadelphia the latest highlights and growth areas for the company in the region.

What were some highlights that Uber saw in the region during the past 12-18 months?

We rolled out Express POOL, which is a new version of Uber POOL. This new shared ride option allows passengers to get more affordable rides by taking a short walk to a spot along the route to meet their Uber, and joining other users with similar routes — which makes ridesharing more efficient. We also made significant progress on our wheelchair accessibility, through a partnership with MV Transportation, to get more wheelchair accessible vehicles on the road and massively improve the reliability of that service. Finally, we launched Uber Rewards in late 2018, which is a loyalty program for riders. Whether you’re using Uber as a rider or to get food you can accumulate points and unlock special features on the Uber app.

What are the main growth drivers for Uber in Philadelphia?

In Philadelphia and other similar-size cities, our fastest growth areas are typically outside of the core. We’re excited to bring portable options to places that are not traditionally served by public transportation, and need a quick, reliable and cheap alternative. Outside of our ride program, we’re expanding the Uber concept as a platform and joining other transportation modes. For example, we recently launched a transit planning pilot program in Denver with the local transit system. The biggest opportunity for growth is around this concept that Uber is a platform and a way to get from point A to point B, but not necessarily in the back of a car. That part of the business has grown substantially over 2018 and is continuing to grow.

What are you doing to grow and improve the driver side and experience in the city?

We’re sitting in our Greenlight Hub facility, which is a physical location where drivers can come to receive in-person support with the on-boarding process. It’s very important for us to make sure the drivers have the support they need. We have also launched a number of different tools over the last 18 months to improve the drivers’ experience. For example, we had our 180 Days of Change campaign to make substantial improvements to our product based on the feedback of our local and national drivers.

To learn more about our interviewee, visit:

Uber: https://www.uber.com/

Spotlight on: William Burns, Tax Office Managing Partner, BDO

By Yolanda Rivas

2 min read JULY 2019 — Accountants and financial professionals play an important role in the global economy and business model, taking on an array of roles within organizations in all industries. According to the Bureau of Labor Statistics the employment of accountants and auditors is projected to grow 10 percent from 2016 to 2026, faster than the average for all occupations.

Accountants can bring a significant perspective of the economy and industries growth. Our ‘Spotlight on’ for this week brings a perspective of what are the industries looking for in regards to advisory and how the local accounting companies impact the labor pool.

BDO offers a wide range of services including advisory, audit/assurance and tax services. Which are most in demand in Philadelphia?

The core services that we provide in Philadelphia are audit and tax, which is where we are seeing the most demand. Our recent acquisition of AC Lordi will allow us to bolster what we can do regarding advisory and scale us up to the next level. We have seen an increase in demand for our services from healthcare, life sciences, and manufacturing and distribution. In addition, we have seen an influx of people reaching out for advice regarding maximizing the benefits of tax reform. We expect to see an increased demand for advisory services related to tax reform, especially surrounding Opportunity Zones.

What are BDO’s efforts to recruit talent from the local pool?

Six years ago, BDO merged a select group of geographically close practices, retiring a number of partners and ushering in a new class. We now find ourselves in a position where we can grow exponentially in one of the largest markets in the country. Our focus on targeted growth means we are constantly adding talent as we look to expanding our tax specialties.

There is always a hunt for qualified talent. To combat that, we try to over-hire at the entry level. Turnover in our industry is relatively high and by attracting more students at the front end we have more opportunity to offer them higher positions when people decide to leave. We have partnerships with local universities and we recruit on a regional and national level. We also have a program to identify and attract students to the region from all over the nation.

What Impact does technology have on the accounting and financial sectors?

Technology has a huge impact on how we operate, since most of what we do is software driven. Data analytics is making us more efficient and many firms are using it as a tool within their audit and tax practices. Those firms that aren’t focused on using and developing technology are going to lag behind.

To learn more about our interviewee, visit:

https://www.bdo.com/about/us-locations/philadelphia-office

Philly Life Science Leaders Boosting Infrastructure, Partnerships

by Yolanda Rivas

2 min read July 2019 — With more than 800 related companies and a rich network of health and education systems, the life sciences sector in Greater Philadelphia is growing at a steady pace. All the activity is driving local organizations to develop new infrastructure and local partnerships to cater the burgeoning segment. One prime example: uCity Square

“There’s nothing like it right now in the Philadelphia region,” Steve Zarrilli, president and CEO of the University City Science Center, told Invest:. A community for entrepreneurs and innovators, uCity Square is an example of the recent efforts to connect businesses, residents, institutions and innovators to form a growing hub in Philadelphia.“Spark Therapeutics and Invisible Sentinel are two of the companies located in University City, and we recently announced that Amicus Therapeutics is creating one of its research centers here as well. These and other companies at uCity Square will play a significant role in the growth of Philadelphia’s life sciences sector,” Zarilli said.

More than 80 percent of all companies in the life sciences industry have a presence in the Greater Philadelphia region. As stated in Invest: Philadelphia 2019, health-focused sectors provided an economic impact of $88.5 billion for Pennsylvania in 2016 and an economic output of $24.6 billion total between 2011 and 2016 for the Greater Philadelphia region.

Numerous research, biotech and medical devices organizations contribute to the role of life sciences as a key player in Philadelphia’s economy. The pharmaceutical company GlaxoSmithKline (GSK) is an example of that impact, with more than 3,400 people employed at its Upper Providence research and development facility. According to GSK Vice President of Medicine Opportunities Research Unit David Payne, the site is the company’s hub for pharmaceutical R&D in the United States, and represents 40% of its global pharmaceutical R&D workforce.

As part of its efforts to contribute to the local life sciences sector, GSK continues to look for partnerships and alliances. “We want our U.S. R&D hub at Upper Providence to be a magnet for talented scientists, researchers and physicians. This is a great research center for innovators to build their careers. Every function required in the ‘molecule to medicine’ journey is represented at our hub, providing opportunities for employees to broaden their R&D knowledge and enable career progression and diversification,” Payne said.

Besides the demand for qualified professionals, there is also a need for infrastructure development to support the region’s scientists, entrepreneurs and life sciences companies. As Zarrilli explains, the Science Center’s goal is “to build an additional 3 million square feet of office, lab, residential and retail space over the next seven to 10 years, to further define the leading-edge community we envision at uCity Square. We will do our part to help make Philadelphia a leader in gene therapy and other areas of life sciences.”

As the growth in Philadelphia’s life sciences sector continues, it will impact different areas and draw more entrepreneurs and companies to the region. According to Zarrilli, the advances in the life sciences arena, especially in therapeutics, will lead to additional advancement in areas such as medical devices and digital health. “Life sciences is clearly the strongest area of innovation in Philadelphia, but it will spawn activity in other areas that are complementary.”

To learn more about our interviewees, visit their websites:

University City Science Center: https://sciencecenter.org/

GlaxoSmithKline: https://us.gsk.com/en-us/

uCity Square: https://ucitysquare.com/

Philadelphia Readies the Fireworks for Iconic July 4 Bash

by Yolanda Rivas

2 min read July 2019 — When it comes to celebrating America’s birthday, few do it like Philadelphia. From spectacular fireworks displays and public concerts to festivals and parades, the City of Brotherly Love has one of the biggest and most popular Fourth of July celebrations in the nation.

Among the most iconic local celebrations is the six-day Wawa Welcome America festival. With over 50 free multicultural events, the city, chambers of commerce, tourism organizations, local universities and dozens of public and private organizations come together to celebrate the nation’s birthday.

“The Wawa Welcome America festival continues to enhance Philadelphia’s national reputation as a must-visit destination, with show-stopping, diverse and most importantly, entertainment experiences that are open to the public,” Philadelphia Mayor Jim Kenney said in a written statement.

To offer families and guests an enhanced experience, the activities this year will have a new layout design for the July 4th Party on the Parkway and July 4th Concert & Fireworks. “Spending the day with us on the Parkway will be better than ever before; we are really excited to have our guests take advantage of this expanded layout,” explained Welcome America Inc. President and CEO Michael DelBene, in a statement outlining the event.

Attendees will also have free entrance to 22 local museums, attractions and cultural institutions during the 2019 Wawa Welcome America festival. This year marks the largest number of museums participating in the festival’s 27-year history.

The activities on the 4th of July will start with the Celebration of Freedom Ceremony at Independence Hall, presented by the City of Philadelphia’s Office of the City Representative and Independence National Historical Park. The event will include a reading of The Declaration of Independence and a performance by the Philly POPS® BIG Band. Mayor Jim Kenney will present the fourth annual Magis Award and convenience-store chain Wawa will announce the recipient of The Wawa Foundation Hero Award.

After this ceremony, 4,000 marchers, floats, and military personnel will begin the Salute to America Independence Day Parade. From noon to 7 p.m. visitors can enjoy numerous entertainment activities across five blocks at Benjamin Franklin Parkway.

This year’s concert, produced by Live Nation Philadelphia and Comcast NBCUniversal, will feature performances from GRAMMY® Award-winning singers Meghan Trainor and Jennifer Hudson.

“The City of Philadelphia is proud to welcome GRAMMY® Award-winning superstars Meghan Trainor and Jennifer Hudson to our great city, as well as shine a spotlight on Philadelphia native Patti LaBelle along with the hundreds of talented entertainers performing leading up to July 4,” said Mayor Kenney.

The Celebration of Freedom Ceremony and Salute to America Independence Day Parade will be broadcasted by NBC10 and Telemundo62 on July 4 at 10 a.m. and 11 a.m., respectively. NBC10 will also broadcast the Wawa Welcome America July 4th Concert and Fireworks live from 7-10 p.m.

“This year, we embrace time-honored traditions to celebrate the city’s diverse neighborhoods, thriving creativity, and global appeal. With over 50 free, family-friendly events, we invite everyone to join the fun, and commemorate our nation’s independence,” said DelBene.

For more information, please visit:

Wawa Welcome America: https://welcomeamerica.com/

Philly POPS®: https://www.phillypops.org/

Meghan Trainor: https://www.meghan-trainor.com/

Jennifer Hudson: https://jenniferhudsononline.com

Baby boomer retirees keeping accountants, advisers busy

By staff writer

June 2019 — As the baby boomer generation retires from the workforce, the need for business succession planning continues to grow. This is keeping at least one group busy: accountants and advisers.

“Over the past few years, we’ve seen significant growth in the need for succession and exit planning services due to the concentration of businesses that are owned by baby boomers who are retiring on a daily basis,” Christopher Meshginpoosh, managing director of Kreischer Miller, told Invest:. “Many of the owners of our clients are trying to fill their bench of future leaders or determine which exit options make sense for them in light of their long-term goals,” he said.

Although boomers are staying longer in the workforce and they continue to drive the U.S. labor market, business owners who were born between 1946 and 1964 are having a hard time transitioning their companies to the next generation of owners. According to Deutsche Bank Research an estimated 10,000 people turn 65 each day, which is the standard age for retirement. The Census Bureau estimates that by 2030, all baby boomers will be older than age 65.

“There is potential for a talent void as baby boomers leave the workplace. This represents a tremendous opportunity for younger professionals as they are presented with more career opportunities,” James Bartolomei, Principal at HBK CPAs & Consultants, told Invest:.

The increased number of boomers retiring each day presents several challenges for employers, including the need to provide the right tools for every party involved in the transition process. “Companies need to make sure they have mentoring and training programs in place to allow a smooth and effective transition from one generation to another,” Bartolomei said.

Some accounting and advisory firms, such as Kreischer Miller, have seen a great deal of interest in the formation of employee stock ownership plans (ESOPs), which has driven them to develop a deep expertise in that area.

“In the right situations, ESOPs provide a tax-efficient method for owners to gradually transition ownership to their employees, allowing the business to continue to thrive as an independent organization,” Meshginpoosh said.

According to Generational Equity, there were some 12 million baby boomers who owned a business in 2015, and 70 percent will be retiring over the next couple decades.

Although the exit of the boomers from the workforce presents numerous challenges for the economy overall, it translates into opportunities for the youngest generations. Many Philadelphia accounting experts are positive about the market.

“The fundamentals that our clients are showing us are great. Earnings are good, the businesses are solid and they’re growing organically as well as through acquisitions. Overall, the Philadelphia economy is expanding and we’ll continue to see a lot of private equity pumped into the Philly market,” Christopher Bruner, managing partner of EY, told Invest:.

For more information about our interviewees visit:

Kreischer Miller: https://www.kmco.com/

HBK CPAs & Consultants: https://www.hbkcpa.com/

EY: https://www.ey.com/en_gl

Big Game, Big Impact

January 2018 — “Win it all and the party is on us,” read a Bud Light tweet to the Eagles back in August. With the Eagles securing their place in one of the biggest sporting events in the world, it’s not just free beer that’s on the line for the city of Philadelphia.

While it’s a known fact that the host city of a Super Bowl is going to experience massive (if inconsistent) economic gain from the event, the impact on the competing teams’ home cities is a little more nebulous. After all, there’s no obvious boost in things like hotel occupancy, flight bookings or ground transportation. The potential economic benefits for home cities are more of a long-term bump rather than a short-term windfall.

With all of the media attention and news coverage currently being piled on the Eagles, Philadelphia’s image as a destination city is sure to get a boost. This could lead to an increase in visitors down the road, especially in sports tourism (good news: Lincoln Financial Field offers both public and private tours). Team and related merchandise sales are on the rise (costume shops were scrambling to keep those rubber dog masks in supply even before the playoff game), and locals are feeling a renewed sense of pride in their city. As Eagles owner Jeffrey Lurie said, “You just want to win so badly for them.”

Psychic income — an economic term to describe non-monetary rewards — might not always come with big dollar signs, but it does bring real benefits. Emotional satisfaction is hard to measure, so if you’re the type that needs numbers, here’s something to consider: one study found that the real per capita personal income was higher in cities that have had a Super Bowl win, suggesting there’s a link between Super Bowl wins and worker productivity.

What we know for sure is that this is the first time the Eagles have been to a Super Bowl since 2004, and they’re the biggest underdogs to make the big game since 2009. Despite boasting one of the best defenses in the league, they have their work cut out for them in taking on the Patriots on February 4 at the U.S. Bank Stadium in Minneapolis.

While Boston cream donuts might not be getting any love from the City of Brotherly Love (one Philly shop banned their sale until after the Super Bowl), there’s no question that the underdog team from an underdog city is galvanizing its fans.

And if that’s not enough to get you excited, don’t forget that if the Eagles win, Bud Light has promised beer to the whole city!

Small City, Big Impact

January 2018 — Celebrating an official 20 years as Philadelphia’s Garden District, Chestnut Hill now has something else to be excited about as it kicks off the new year.

A recently conducted Annual Economic Impact Snapshot reveals that Chestnut Hill has an approximate economic impact of $482 million on the five-county southeastern Philadelphia economy. This figure does not even include money spent by visitors who come to shop and dine in the Garden District.

The report was conducted by Econsult Solutions, which came up with the approximate number by analyzing a consortium of 10 nonprofit organizations based in Chestnut Hill. These 10 organizations represent a diverse group of economic sectors and industries; three of them are in education, one in healthcare, two in arts and culture, one in sports, two in gardening and natural resources and the last is the Chestnut Hill BID.

The 10 organizations provide a total of 3,480 jobs and $6.1 million in taxes for the city. The largest of the 10 — Chestnut Hill Hospital — employs 300 people and attracts various patients from neighboring cities. In fact, the City of Chestnut Hill is becoming a hub for residents of neighboring cities who are attracted by the schools, stores and arts and culture.

In terms of Chestnut Hill real estate, the report concluded that homes in the city sell for 136 percent more than average homes in the City of Philadelphia and represent a total of $2.1 billion in market value.

Moving forward, Chestnut Hill seeks to use this momentum to continue this positive pattern. Community institutions of Chestnut Hill are seeking investments from the state and surrounding areas in order to spur growth.

Invest: Philadelphia is keeping an eye on the up-and-coming Chestnut Hill neighborhood and is excited to see what the future holds for this city.

For more information on Chestnut Hill, visit their website: https://chestnuthillpa.com/

PA Governor Tom Wolf in Philadelphia

Pennsylvania Governor Tom Wolf and

Executive Director Josh Greenberg of Capital Analytics

When: January 17, 2018

Where: Temple University – Center City Campus, Philadelphia

Website: https://jhp.org/programs/jewish-business-network/

What: JBN January Power Lunch Presenting PA Governor Tom Wolf. Each month, JBN invites prominent business people and community leaders who have reached accolades in their professional career to speak to our members, provide them with expertise, and offer all participants a unique and exciting networking opportunity.

Governor Wolf Declares Statewide Disaster Emergency

January 2018 — Back in October, President Trump declared the opioid crisis a national health emergency. While the national rate of drug overdose is 16.3 per 100,000 people, that number is more than double in Pennsylvania: 36.5 per 100,000 people.

In 2016 alone, drug overdoses accounted for 4,642 deaths in the state of Pennsylvania, a 37 percent increase from 2015. These horrific numbers led Governor Wolf to declare the heroin and opioid epidemic a statewide disaster emergency on January 10, 2018.

Pennsylvania already has many responses to the epidemic in place. These include the expansion of Medicaid to help 125,000 access treatment, the creation of a support hotline, the establishment of 45 centers of excellence treatment programs that allow 11,000 Pennsylvanians to receive care and the provision of $2 million to expand specialty drug courts.

As part of Wolf’s most recent declaration — the first of its kind for a public health emergency in Pennsylvania — 13 key initiatives are mentioned as means to continue to combat the issue. These include the creation of an Opioid Operational Command Center at Pennsylvania Emergency Management Agency, widening access to the state’s prescription drug monitoring program and easing the drug treatment process. The three main concerns that the initiatives address are enhancing coordination and data collection to bolster state response, expanding access to treatment and saving lives.

Pennsylvania has the fourth-highest opioid-related deaths in the U.S., after West Virginia, Ohio and Kentucky. Governor Wolf’s recent declaration will hopefully spur the actions being taken against the opioid epidemic in the state, saving both lives and families.

For more information on the opioid epidemic and what the Pennsylvania government plans to do to counter it, visit: https://www.governor.pa.gov