2019-2020 SVA Impact Report : simplebooklet.com

Executive Summary The SVA began celebrating our 35th Anniversary in 2020 Starting from a small regional jobs authority founded by the Mayors of Pittsburgh and eleven Mon Valley towns the Authority today is nationally acclaimed for its layoff aversion sustainable investment and economic policy initiatives Working families in the region and nationally faced an exhausting anxious and for some heartbreaking 2020 due the shocks caused by Covid 19 Fifty million workers applied for unemployment benefits and the UI rate shot to the worst levels since the Great Depression The racial justice protests in hundreds of cities exposed the deep faults of systemic discrimination and income inequality This Annual Report highlights our work aims to describe the difference that we ve made in people s lives and is to reflect on our ongoing canon of good works The SVA redoubled our mission to revitalize the economy and our impacts were felt regionally state and nation wide in 2019 20 Saving Jobs Through SEWN the SVA averted or deferred the loss of 1023 manufacturing jobs in 2019 20 and helped lead the Commonwealth s response to the COVID 19 crisis SEWN sponsored by Pennsylvania s Department of Labor and Industry DLI and the nation s most layoff aversion system has now saved over 1 000 jobs annually for over a decade In 2020 the SVA assisted Chicago Cook County in establishing its own jobs saving program

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Executive Summary Investing Responsibly The SVA s Heartland Network helped hatch America s first national sustainable investment policy act proposed by Congressman Andy Levin Though our Heartland Georgetown Summer Fellowship was cancelled this past summer we have now graduated 25 remarkable fellows a new generation of capital stewards We also completed our 6th mini book on responsible investment Building Sustainable Communities Commissioned by the Heinz Endowments the SVA Heartland team convened a four state Sustainable Finance Hub virtual event in 2020 This innovative initiative to mobilize capital for clean economy jobs for Ohio Valley Industrial Appalachia Mayors brought together Heartland investors unions elected leaders and sustainability champions The last time this country faced such an existential crisis was the Great Depression and WWII America needs new development and finance institutions can stabilize the economy We ve done it before we can do it again The SVA and our partners have helped design sustainable jobs and investment policies that we are sharing with the new Presidential transition Congress and state governors Our communities need capital for a clean economy an advanced manufacturing base and a revitalized infrastructure Here are a few building blocks from that conversation National Policy SVA Heartland brought together a brain trust to help the US Congress draft a national sustainable investment bill focused on pension funds We also mobilized opposition against a DOL rule rolling back responsible investing Heartland authors also completed a revision for a new book chapter on U S codetermination and the stakeholder economy part of a new corporate governance book in 2020 21 State Manufacturing Policy PA s SEWN Program was praised in the Century Foundation s Midwest Great Lakes Manufacturing Communities Report Card which reported on how well PA and our neighbors have enacted 9 Steps to Revitalize America s Manufacturing Communities We contributed to the layoff aversion and capital strategies steps in the new manual City Energy Investment Policy SVA Heartland contributed to Pittsburgh Mayor Bill Peduto s Marshall Plan for Middle America which envisions the Ohio River Valley as a sub region of middle America that can lead America s renewable energy infrastructure We also worked with NYC s mayor to jointly provide pension policy education to the City of Pittsburgh pension fund trustees The city then implemented a responsible investment ESG pension policy In closing I would like to thank the staff boards sponsors and Friends of the SVA who supported us and made our work possible We look forward to our exciting 36th year ahead

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SVA ANNIVERSARY The SVA began it s 35th year in September 2020 We re extremely proud of our grass roots start and continue to this day our reliance on keeping things close to home While we ve expanded our reach across Pennsylvania we have not given up the good fight of looking out for our communities In lieu of a fundraiser the SVA solicited donations of PPE materials Thanks to generous donations from community partners and former SEWN clients we received enough gloves face masks hand sanitizer face shields cleaning wipes and floor markers to provide Manufacturing Worker Safety Boxes to small and medium sized manufacturers in our Commonwealth To see a virtual presentation on our history visit our website at www steelvalley org history

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By the Numbers SVA s growth has been sure and steady In 2020 the SVA Board approved an annual budget of 1 7 million We have managed an estimated 27 million in revenues since 1985 and channeled millions more to small businesses and our member communities during that time This past year the Authority maintained a core staff team of eleven employees our solicitor and public relations consultant and a steady cadre of three SEWN consultants in addition to as needed advisors Here are the SVA s financial and organizational highlights SVA s growth has been sure and steady In 2020 the SVA Board approved an annual budget of 1 7 million We have managed an estimated 27 million in revenues since 1985 and channeled millions more to small businesses and our member communities during that time Cost to Pennsylvania for each job saved by SEWN in 2019 20 This past year the Authority maintained a core staff team of eleven employees our solicitor and public relations consultant and a steady cadre of three SEWN consultants in addition to asneeded advisors Here are the SVA s financial and organizational highlights Jobs Program The PA Department of Labor and Industry DLI awarded the SVA 4 5 million to manage the Commonwealth s layoff aversion program for 2020 2023 program For 2020 21 the SVA received a contract of 1 5 million The SVA also received an 8 000 grant to provide layoff aversion training to Manufacturing Renaissance for Chicago Cook County Illinois Sponsor Funding for the Heartland Program in 2020 Five Year Savings to Pennsylvania in Unemployment Costs Capital Program The SVA s responsible investment program Heartland Capital Strategies HCS raised an anticipated 197 663 for 2020 primarily from the Heinz Endowments responsible investment houses and unions This year s support represents the best budget to date

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SEWN Saving Jobs SEWN saves Pennsylvania manufacturing jobs and communities by offering layoff aversion services to stabilize restructure turn around or attract buyers for at risk small to medium sized companies SEWN plans to remain the national gold standard of state layoff aversion programs as measured in the number of Pennsylvania jobs saved for dollars spent Originally commissioned by the PA Department of Labor and Industry in 1993 SVA s Strategic Early Warning Network SEWN provides layoff aversion services a critical component to the state Rapid Response program SVA built this early warning and job retention infrastructure system which relies on a unique public private information system quality programming public awareness and professional staff and consultants With our main office in Pittsburgh and Regional Directors located in Harrisburg Bethlehem Philadelphia and Erie SEWN provides no cost turnaround services to smallmedium sized manufacturers across our Commonwealth Regional advisory board members hail from bi partisan business labor and community stakeholders as well as former clients to provide guidance for the SEWN field offices SVA and the SEWN program work to meet the needs of layoff aversion by Participating in ongoing engagement and relationship building with businesses Establishing partnerships with economic development at all government levels Partnering or contracting with business focused organizations Engaging in proactive measures to identify needs in growing sectors or expanding businesses

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SEWN Saving Jobs Often described as the most cost effective layoff aversion program in the country SEWN continues to produce results The nationally acclaimed model has been recognized by the U S Departments of Labor and Commerce the U S Economic Development Administration EDA the National Governor s Association and numerous other federal and state agencies Over the last five 5 years SEWN has saved jobs at an average of 994 per job saved More than 7 300 direct manufacturing jobs were saved during this time saving the Commonwealth over 45 million in Pennsylvania Unemployment Compensation benefits TOTAL 21 132

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SEWN COVID Challenges First quarter of 2020 brought about one of the the greatest challenges faced by companies and workers everywhere Coronavirus SEWN staff mobilized quickly to create a resource page on our website hosted a webinar on Contingency Planning conducted surveys and published several articles on Paycheck Protection loans small business initiatives and the PA Shared Work program In the Northwest SEWN collaborated with Rapid Response the Northwest Industrial Resource Center NWIRC and Small Business Development Centers SBDC from Clarion and Gannon Universities on an initiative to help as many businesses as possible The COVID Recovery Program CRP provided free business assessments cash flow checks and tactical action plans to companies located in Clarion Crawford Erie Forest Lawrence Mercer Venango and Warren counties SEWN continues this work with plans to expand statewide

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SEWN Saving Jobs Below is just a sample of the more than 1000 jobs saved in Pennsylvania this year by SEWN Our largest success story is featured on the next page and deserves to take a bow Metalworking Machinery Erie PA SEWN worked to develop Value Stream Mapping and a reduction project to expedite changeovers 23 JOBS SAVED Paper Product Manufacturer Western PA SEWN provided market research to influence packaging and marketing for targeted demographics 12 JOBS SAVED Steel Products Northeast PA SEWN worked with management to setup a cash forecasting system 13 JOBS SAVED Machinery Manufacturer Southeast PA SEWN worked with the company to create a short term cash preservation strategy 46 JOBS SAVED

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SEWN Saving Jobs Flannel and Hammer Take Center Stage When Coronavirus hit it appeared the curtain had come down and the lights had gone out for a local company Flannel and Hammer F H F H was famous for constructing grand scenery for theaters along the east coast including The Wilma Pig Iron Fringe Arts and InterAct Theater F H was thriving employing 16 people from technical directors to carpenters painters and plumbers When theaters went dark due to COVID revenues plunged to zero Founding partners Lauren Tracy and Joe Daniels had to reinvent their business Surveying their expertise they found their niche decorative safety screens Their designs can be customized for restaurants using accommodating both outdoor and indoor dining while being customized to fit a range of customer needs The products are manufactured using both steel and wood frames with FDA approved polymer screens Saba Tedla owner of Bookers Restaurant and Bar in Philadelphia was their first customer She worked with Lauren and Joe to design build and install four custom double units Saba noted the screens are not only beautiful they help make customers feel more comfortable The extra revenue from having more tables in use justifies the added expense of custommade screens Business at Bookers has been booming

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SEWN Saving Jobs When asked how they decided to pivot the company Lauren and Joe knew they could rely on their foundational skills At the end of the day we re a wood shop For us it was about developing a product that uses the skills we have in a way that could help the community said Tracey But with their shop not being sterile enough to make masks or face shields they needed to look elsewhere for inspiration For F H designing is their wheelhouse While set design and developing temporary safety screens have a surprising amount in common becoming an efficient manufacturer as well as marketing to a wide variety of restaurant customers is another matter Steiker had pushed F H to dramatically cut production costs which was done quickly Lauren and Joe however had a much tougher time with marketing Enter SEWN F H connected with SEWN Director Greg Olson and Consultant Joel Steiker through a referral from PA Rapid Response Joel had already been working with another local manufacturer who specialized in fabrics for industrial and building uses When COVID hit they too were looking at alternative uses for their product giving Joel some foresight into what F H could potentially do When help was needed in sales their head carpenter AJ Garrigus rose to the occasion We were developing products doing custom work fine tuning production and working with clients We needed help if we were going to expand into sales and it turned out our master carpenter AJ Garrigus had the most experience said Daniels Currently F H is putting Garrigus to work expanding the market for their products Now that F H has installed the safety screens in a few locations Joel has been coaching them through marketing You have to focus on the top of the funnel pound the pavement and develop an email campaign to reach hundreds of potential customers he notes And by the way get used to rejection It happens more than 90 of the time

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SEWN Making Headlines SVA and the SEWN program published several pieces throughout the year with a focus on the pandemic and providing assistance to small business Additionally SVA and our Executive Director Tom Croft were featured in articles nationally A New Administration Small Business By Anita Prizio SEWN Outreach Staying on Top of Your COVID Safety Processes By Carrie Mihalko SVA SEWN Development Director Suddenly ABL By Mike Perfetti SEWN SW Director How Local Manufacturers Maneuvered During COVID 19 Survey Results By Greg Olson SEWN SE Regional Director NWIRC Driving Impact for Manufacturers By Deb Lutz SEWN Erie Director The Ongoing Worker Shortage By Carrie Mihalko SVA SEWN Development Director Alexa Find Me Some Employees By Carrie Mihalko SVA SEWN Development Director Manufacturing Diversification By Patrick Meese SEWN Central Director The State of Manufacturing in Pennsylvania By Bob Value SVA SEWN Deputy Director and Carrie Mihalko SVA SEWN Development Director Why Cash Is King By Bob Value SVA SEWN Deputy Director COVID Recovery Program By Deb Lutz SEWN Erie Regional Director A No Cost Effort to Push Manufacturing Through Coronavirus By Carrie Mihalko SVA SEWN Development Director Payroll Protection Program Advisory By Joel Steiker SEWN Consultant SEWN Advisory on benefits limitations of the PA Shared Work Program By Joel Steiker SEWN Consultant Preparing Your Company for the Potential Pandemic By Carrie Mihalko SVA SEWN Development Director Adjusting to a Post Coronavirus Economy Requires Just Transitional Workforce Strategies By Tom Croft SVA and Livia Lam Center for American Progress Innovative State Manufacturing Policies in the Great Lakes Region By Amanda Novello Christopher Ibeling The Century Foundation SVA Breathing New Life into Manufacturers By Pittsburgh Technology Council As Reshoring Interest Rises Consultants Offer Assistance an One PA Manufacturer Offers a Warning By Ethan Simmons Pittsburgh Post Gazette

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LATTE Training When the SVA was originally commissioned to write the original Layoff Aversion Guidebook by the U S Department of Labor the term layoff aversion was barely a Google blip Today we can proudly say that we see our work being shared on a national basis Over the years SVA s Layoff Aversion Technical and Training Expertise LATTE has provided consulting and training to North Carolina Los Angeles Colorado New York and numerous other cities states With the 2015 DOL changes strongly advising states to implement layoff aversion which SVA contributed language to we updated the manual to a Layoff Aversion Playbook in 2018 On behalf of the Manufacturing Renaissance team we express our sincere gratitude to Tom Croft Bob Value and Carrie Mihalko for their support in our launch of Cook County Illinois Early Warning Network We share our pilot program success with the Steel Valley Authority SVA who generously shared their national model for layoff aversion Strategic Early Warning Network SEWN training us on their b est practices and innovative approach towards workforce and economic development Thank you for your dedicated support to impacting communities Selene Diaz Program Director Manufacturing Renaissance

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Heartland Capital The Heartland Network fosters a Community of Practice for responsible investments RI Heartland s advocates are working in a united front to rebuild our cities renew our industrial commons grow the clean economy and make the boss more accountable Established in 1995 by the SVA Steelworkers and AFL CIO to explore and promote capital strategies for labor s capital Heartland is today a leader in responsible investing Heartland s members are themselves investment aviators in innovative capital stewardship and corporate governance Heartland s Mission To mobilize responsible investments by capital stewards in the real economy achieving competitive financial returns and positive ESG impact Heartland s achievements fall into four main categories thought leadership education field work and communications National Responsible Investment Policies Congressman Andy Levin reached out to Heartland and some key stakeholders a year ago He asked a simple question How can we make our financial system better protect workers and the environment The push to better align US financial regulations with addressing worker rights power climate change and other essential concerns for investors isn t new but it s picked up a lot of steam recently In the US the Labor Department has been going in the opposite direction discouraging ESG integration and consideration Heartland worked with Congressman Levin over the past year to explore the development of a national responsible investment bill In addition to Heartland s Leadership Team advisors included SVA Heartland Board Member Tyler Gellasch and reps from the Center for American Progress CAP and the Principles for Responsible Investment PRI Andy introduced the bill at Heartland s Sustainable Finance Convening Our Heartland Governing Board marshalled a national response to the Department of Labor s DOL unreasonable rule proposal that threatened to severely limit responsible ESG investing With the help of Network member David Keto we submitted a letter in opposition to the DOL encouraged Congressional leaders to submit letters 40 did and worked on a pending Op Ed

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Heartland Capital Heartland Capital Col labor atory In January 2021 Heartland convened a distinguished group of consultants asset managers labor and policy leaders to launch a new research working group on private asset monitoring Heartland seeks to Rationalize guidelines to navigate the multitude of RI frameworks in the marketplace and push on a labor standard that strengthens the S in ESG Provide answers to responsible investors who wish to determine the extent of the attention given to the L or Labor in the S in investment products that are labeled ESG or Responsible In November the Network began distributing a test field survey to gather information and gauge interest Thanks to all of the supporters of the Col Labor atory initiative we hope to have a full report on prospective directions soon New Heartland Literature Temple University Press will publish in 2021 a new book on corporate governance that includes from HCS authors Investing in the Commonwealth Company a chapter on U S co determination and the stakeholder economy a topic that has exploded We also released our sixth mini book on responsible investment focused on implementing and measuring ESG and will package the series for national distribution Heartland Georgetown Fellowship Heartland and Georgetown s Kalmanovitz Initiative for Labor and the Working Poor KI announced the Labor Capital Strategies Fellowship LCS will resume in 2021 This will be the fourth remarkable fellowship class wherein responsible investors and unions are working with a diverse group of students to pay it forward in the responsible finance world The mission of the LCS is to identify and educate a new generation of capital stewards and responsible investors and to construct a new diverse talent pipeline In 2019 we graduated our third class of eleven 11 Labor Capital Summer Fellows from ten 10 hosts We have graduated 24 talented young people over the last three years from numerous colleges across the U S Past Fellowship hosts and sponsors have included AFLCIO Housing Investment Trust LiUNA Ullico KPS Capital Partners Blue Wolf Capital Partners Meketa Segal Marco Change to Win Hamilton Lane Teamsters Stellex and GCM Grosvenor

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Heartland Capital Presentations on Responsible Investment The Heartland Network and our investment partners are engaging with city mayors state treasurers pension funds the labor movement sustainable businesses environmental and community stakeholders Here are notable educational events in 2020 Education Program for Bloomberg financed C40 Cities Presentation to City of Pittsburgh pension managers trustees Presentation to Mayors in the Ohio Valleys Participation in presentation to Climate Mayors Sustainable Investment Hub for Industrial Appalachia In 2020 the Heinz Endowments commissioned Heartland to convene a four state gathering in Industrial Appalachia to mobilize responsible investments for Western Pennsylvania Southern Ohio West Virginia and Kentucky Building on our 2019 Steel Cities Capital Roundtable we assembled sustainable investment and responsible contractor policies models and practices for this region long impacted by boom bust deindustrialization resource depletion and high levels of poverty both rural and urban On October 7 2020 Heartland was the lead conductor for the Sustainable Finance Hub with the Reimagine Appalachia RA Campaign and the Center for Sustainable Business at the University of Pittsburgh Congressman Andy Levin five mayors a dozen investment manufacturing energy development and union speakers and 200 participants took part of this virtual event

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Heartland Capital During the convening Congressman Levin announced his 2020 Sustainable Investment Policy Act The Act would provide guidance to America s pension funds to invest responsibly The Hub s goal is to establish a clearinghouse for clean economy manufacturing energy transportation and affordable housing projects Heartland s capital partners engaged with city mayors state treasurers pension funds the labor and sustainable business leaders environmental and community stakeholders Pittsburgh Mayor Bill Peduto joined mayors from cities in Kentucky Ohio and West Virginia in November to call for federal support in a plan that would provide more climatefriendly industrial growth including jobs across the upper Appalachian region and the Ohio River Valley Heartland participated in the task force to bring eight mayors together and also contributed pension and labor standards content for the Marshall Plan for Middle America which is being submitted to the Biden Transition Team Heartland Thursday Expresso The Heartland Thursday Expresso along with its companion Double Expresso has broadcast in one form or another since 1998 In 2020 we broadcast articles on Heartland partners financial and economic problems and responsible capital strategies This includes Heartland 7 Questions feature stories on Responsible Investor Aviators National Local News Coverage Heartland s work with the Marshall Plan and Congressman Levin s bill has been mentioned in articles from coast to coast including ThinkAdvisor com Yahoo Finance KDKA Radio Lexology Pittsburgh Post Gazette Investment News

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Our Boards The staff wishes to thank our Board of Directors and SEWN Advisory Boards for your generous support to our common cause we express our deepest gratitude to you and the institutions that have sponsored our earnest endeavors You have all made a difference in this great fight we are forever indebted SVA Board of Directors Western PA SEWN Advisory Board Eric Ewell Lori Schmidt Chair Tyler Gellasch Tom Michlovic Vice Chair Tom Maglico Chris Casavale Treasurer David Perla Amy Starrett Secretary Gina Velar Jay Hornack Solicitor Robert Witherell Charles Bennett Colleen Wooten Rep Austin Davis Northeast PA SEWN Advisory Board Sen Lisa Boscola Richard Parry Jeffrey Box Darlene Robbins Nancy Dischinat Janet Smith Eric Esoda Tina Smith Rep Scott French Joel Steiker Richard Hobbs Frank Thompson LucyAnn Vierling John Kingsley Rep Ryan Mackenzie Ron Vogel Doug Warfel Southeast PA Advisory Board Jean Andrews Sen Bob Mensch Kevin Busza Joe Messner Jr Patrick Clancy David Niles Robert Cormack Peter Rapp Marybeth DiVincenzo John Shegda Dan Fogarty Suzanne Smethers Jeffrey Gossner Gary Smith Matt Hancock Lindsay Szejko Tom Krol Joel Steiker Bud Tyler Jaimyn Westenhoefer Central PA Advisory Board Jill Collier Jesse McCree Sheri Collins Tim McElhinny Marty Culp Drew Ortyn Derrick Donnell Ruben Pachay Shaun Donovan Tom Palisin Robert Duck Debbie Prosser Melanie Erb John Reichard Neil Fowler Cathy Rychalsky Kenetha Hansen Yanimer Serrano Steve Herzenberg John Sygielski Dan Kuba Brent Vernon Russ Lawrence Thomas Werstler Tom Matthews Susan Whisler Leigh Ann Wilson

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Acknowledgments We sincerely thank and wish to acknowledge a number of important people and organizations that contribute to our success Special appreciation to Governor Tom Wolf and the PA Department of Labor Industry for their sponsorship of the SEWN program especially Secretary Jerry Oleksiak Executive Deputy Secretary Robert O Brien Deputy Secretary Sheila Ireland BWPO Director Ruben Pachay BWDA Director Dan Kuba BWPO Division Chief Steve Wolf and Rapid Response Coordinator Bev Rapp Special thanks to our many PA partners including DCED and the Governor s Action Team DLI Rapid Response group Chester County EDC the WIBs IRCS and numerous other economic development partners Pittsburgh Mayor Bill Peduto and the Pittsburgh City Council along with Grant Ervin Sustainability Director Allegheny County Executive Rich Fitzgerald and the Allegheny County Council and the Mayors and Council Members of our eleven municipal towns David Mayernik from Eckert Seamans for his outstanding public relations work Dr Elizabeth Stork Robert Morris University for her professional evaluation services Dan Telep Crossroads for his project consulting Deane Patterson Patterson Consulting for his communications advice Professor Joe Mistick and the remarkable students from the Duquesne University Urban Law Clinic Thanks also to Bob Vernick Senior Vice President at Farmers National Bank for his continued service and support Special acknowledgement to our auditing team at Holsinger Thanks to Heartland Strategic Researcher Annie Malhotra CFA co author of the Responsible Investor Handbook and our friends at Routledge Publishing Sincere thanks to our Heartland Capital Strategies Governing Board Officers Deborah Nisson CRE Consultant Representing Ullico Investment Advisors Steve Sleigh Owner Sleigh Strategy Ted Chandler Managing Partner AFL CIO HIT David Keto President SRI Group and Thalia Lankin Chief Strategy Officer AFL CIO ITC Special thanks to David Blitzstein Blitzstein Consulting LLC and the HCS Governing and Fellowship Advisory Board members Thank you to our colleagues at the Georgetown University Kalmanovitz Initiative for Labor and the Working Poor including Dr Joseph McCartin Dawn Carpenter Jessica Chilin and Juan Belman Thanks to Steve Herzenberg Keystone Research Center and Amanda Woodruff Ohio Policy Matters for their leadership in Reimagine Appalachia Finally thanks to Grant Oliphant President Andrew McElwane Vice President Sustainability and Philip Johnson Senior Program Director all of the Heinz Endowment and Mike Kane President and Executive Director of the Community Foundation for the Alleghenies

2019-2020 SVA Impact Report

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