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20-21 SVA Impact Presentation

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SVA Steel Valley Authority 2020 2021 IMPACT REPORT SEWN HEARTLAND

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Letter from Tom Fiscal Highlights Table of Contents SEWN Heartland Our Staff Board Acknowledgements

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Tom Croft Executive Director The Steel Valley Authority SVA has been a vital voice in a fundamental shift in the national conversation about the importance of Maintaining a robust manufacturing and productive economy Reinvesting in our Industrious Heartland Appalachia and America Building sustainable inclusive communities During the COVID 19 pandemic crisis businesses learned the hard way the catastrophic mistake of sending vital jobs and industry overseas as we struggled to secure the masks ventilators and PPP needed to assist people Our communities still suffer from a breakdown of the supply chains for essential products like cars and electronics due to a lack of semi conductors Working families bore the brunt of pandemic and supply chainimpacted shutdowns and related crises affecting our schools restaurants and civic events Despite the hard times there is good news on the way There is a surge of new manufacturing and clean energy projects in Penn s Woods Appalachia and the Industrious Heartland and across the country Wind solar hydro EV charging and energy efficiency construction projects are popping up in towns and cities across Pittsburgh and the region Erie is building electric trains and Pittsburgh and Philly are buying electric buses Youngstown and Columbus are new homes to the electric battery industry and an awesome new semi conductor factory respectively The former Philadelphia Navy Shipyard is building new ships to serve the off shore wind business which also helped open the former Sparrows Point steel facility bringing back 500 steelworkers to build the modern windmills

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The SVA has advised our communities legislators the Wolf and Biden Administration in rebuilding our economy The new federal infrastructure bills will drive a massive amount of construction including long needed funding for bridges like the Pittsburgh Fern Hollow Bridge that tragically collapsed as I was writing this introduction The bills will fuel significant manufacturing supply chains and there are stronger provisions to ensure Buy America Build America and build it with good skilled jobs and qualified apprenticeships Starting from a small regional jobs authority founded in the mid 80s 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 Whether helping a manufacturer diversify into markets that provide pandemic protection provide new finance career opportunities for young and minority students or chart a new path for our local mill towns to take advantage of new clean energy opportunities the SVA is on the case This Annual Report highlights our work aims to describe the difference that we ve made in people s lives and reflect on our ongoing canon of good works The SVA doubled down on our mission to revive the economy and our impacts were felt regionally state and nation wide in 2020 21 SAVING JOBS Operating out of five offices across the Commonwealth the SVA s SEWN program the Strategic Early Warning Network averted or deferred the loss of 1 497 manufacturing jobs in 2020 21 and helped lead the Commonwealth s response to the COVID 19 crisis The COVID Recovery Program a pilot rapid response initiative in Erie County brought together the local IRCMEP SBDC and SEWN to triage the fallout from the pandemic helping many industry sectors Sponsored by Pennsylvania s Department of Labor and Industry DLI SEWN has now saved over 7 300 jobs for the last five years preserving for the Commonwealth 43 million in state UI benefits The Authority broadcasts this good news through a monthly blog the PA Turnaround Times to over 10 000 stakeholders which has featured original articles and videos for SMEs navigating the difficult waters of the past two years

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INVESTING RESPONSIBLY The SVA s Heartland Capital Network s real estate private enterprise and infrastructure investment partners primarily capitalized by workers pensions have saved or created 100s of thousands of high road union jobs built a similar number of housing units re invested in critical manufacturers and are building wind solar renewable energy and transit projects Network partners have invested in or exploring dozens of companies commercial and housing projects across Pittsburgh the Mon Valley Pennsylvania and the broader region Though our Heartland Georgetown Summer Fellowship we have now graduated 50 remarkable fellows a new generation of capital stewards In partnership with the Kalmanovitz Initiative for Labor and the Working Poor KI at Georgetown University GU the Fellowship is shaping new career paths for diverse students from two dozen universities Our Heartland Expresso brought original and important news to over 5 000 readers BUILDING SUSTAINABLE COMMUNITIES Heartland launched four convenings of the Sustainable Finance Hub in 2020 2021 drawing 800 stakeholders from Western PA Ohio West Virginia and Kentucky The mission of the Heartland Hub is to 1 Mitigate climate overheating and extreme weather disasters 2 Invest in a just transition recovery good union jobs and local apprenticeships and pathways for disadvantaged populations The Hub s goal is to serve as a clearinghouse to accelerate investments in clean infrastructure efficient housing real estate and the essential manufacturers in the 4 state region whose communities have been hit hard by deindustrialization mine closures and long term joblessness and poverty Commissioned by the Heinz Endowments as part of Reimagine Appalachia RA and the Marshall Plan for Middle America MP4MA the Finance Hub brought together Biden Administration leaders mayors state treasurers Heartland investors unions and sustainability champions and collaborated on broader initiatives to identify worthy jobs rich projects in the region

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THOUGHT LEADERSHIP INITIATIVES The SVA and our partners have also helped design sustainable jobs and investment policies that we are sharing with the new federal Adminstration Congress governors and mayors Ourcommunities need capital for a clean economy an advanced manufacturing base and a revitalized infrastructure Here are a few building blocks from that conversation NATIONAL INVESTMENT POLICY In 2020 21 Heartland helped draft America s first national sustainable investment policy act proposed by Congressman Andy Levin We also mobilized opposition against a DOL rule rolling back responsible investing and helped draft a Congressional response supporting DOL Secretary Marty Walsh s positive revisions restoring the economically targeted investment and ESG rule Heartland s authors compl eted a new chapter in a book published by Temple University Press The Many Futures of Work on new paths toward an American co determination focused on stakeholder governance models STATE MANUFACTURING POLICY In 2022 the SVA will assist the State of Louisiana in establishing its own jobs saving program having assisted innumerable states and cities over the years With our longtime partner the P ennsylvania Commonwealth the SVA co invented the national layoff aversion approach to saving jobs acclaimed by the U S Department of Labor DOL and federal economic development agencies In fact the SVA wrote the book the 2003 DOL Layoff Aversion Guidebook which can still be found on our website updated in 2019 by our own Bob Value and Deb Lutz link In a partnership with the Duquesne Unive rsity Urban Law Clinic the SVA worked with a law student to shape up an exciting new Reshoring Handbook CITY 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 assist Pittsburg h s pension fund in implementing 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 37th year ahead and we are all hopeful for a safer more open 2022

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Cost to Pennsylvania for each of the 1497 jobs saved by SEWN in 2020 21 5 Year Cost Savings to Pennsylvania in Unemployment Compensation by SEWN jobs saved Sponsor funds received for Heartland Programming during 2021

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We saved 40 more jobs this year Even with the challenges presented by the pandemic SEWN was able to connect with manufacturing companies and save more jobs Clients came from a range of industries Our largest segment of clients came from the fabricated metals industry but also included wood products computer electronic components and food manufacturing Clients primarily needed help in two categories More than half of our clients needed assistance in financial restructuring and or new market opportunities Other services included operations management and human capital strategies

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Baum Precision Technology Roadmapping Business Strategy When SEWN began their assessment on Baum Precision Machining they identified several areas that required customized planning Scheduling and workforce issues were compounded by their need for accurate data collection on their manufacturing processes Our Director realized Baum would benefit from integrating their ERP system with other support platforms and identified advanced technology solutions SEWN worked with the client on review and analysis of advanced manufacturing technology upgrade opportunities including Industry 4 0 interventions and initiatives to align with Baum s existing strategies We also explored options and interventions with a lights out manufacturing process and to allow for more timely and accurate data collection Baum Precision has implemented SEWN s recommendations and averted the need for unnecessary cost cutting or down staffing

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NORTHEAST PA Assisted a steel manufacturing company with revamped marketing efforts and cost management strategies to retain 16 jobs NORTHWEST PA Worked with 30 companies through the COVID Recovery n Program saving over 500 jobs in the region SEWN provides thousands of no cost consulting hours to companies every year Contacted by the owner of a fabricated metals shop needing an operational overhaul which saved 35 jobs SOUTHWEST PA Conducted outreach to more than 500 small and medium sized manufacturers SOUTHEAST PA CENTRAL PA Saved 65 jobs at a family owned machine shop that was targeted for closure due to lack of a succession plan

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Education Labor Capital Strategies Fellowship Launched in 2017 by Heartland and GU s Kalmanovitz Initiative for Labor and the Working Poor KI GU the program has now graduated fifty 50 fellows in our mission to educate a new diverse generation of capital stewards Stats for 2021 were Spring 2021 Summer 2021 Fall 2021 11 Fellows 12 Fellows 6 Fellows 9 Hosts 12 Hosts 5 Hosts Our Fellowship Alumni are contributing to a more sustainable tomorrow in their own ways Sandra N Puetate Capital Alpha Partners Matt Maury Research Assistant at The White House Council of Economic Advisers Sean Mckee Analyst at Hamilton Lane Jasmine King Howard Law Casey Doyle Columbia Law Clare Heine NYU Law

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National Investment Policy Thought Leadership In 2020 Heartland brought together a mighty brain trust to mobilize opposition against a restrictive DOL ETI ESG rule In 2021 we worked with US Congressman Andy Levin to draft two national sustainable investment policy bills and help the Biden DOL fix and modernize the rule Heartland authors also completed a revision for a new book chapter on U S codetermination and the stakeholder economy part of a Temple Press corporate governance book in Fall 21 Heartland Col labor atory In 2020 the Heartland Network convened a distinguished group of pension consultants asset managers labor and policy leaders to launch a new research consultation on private asset monitoring Through this Col labor atory process we elevate labor standards and worker issues for pension capital stewards in the selection and monitoring of private asset managers Partnering with Segal Marco Advisors a global investment consulting firm we will conduct further field surveys and research HCS will then develop tools for pension fund managers and trustees to steer investments to those private asset managers who deliver competitive risk adjusted returns while scoring highly on job creation job quality and worker voice National Economic Policy Heartland released a new book chapter in 2021 as part of The Many Futures of Work Rethinking Expectations and Breaking Molds published by Temple University Press Co authored by Tom Croft and Annie Malhotra Commonwealth Companies A Path to Restore Workers Rights and Economic Democracy laid out five paths toward an American co determination model replicating the work systems in Europe that provide worker voice in governance of corporations The book represents a diverse set of voices imagining a future workplace that provides equitable rewards and worker inclusion rather than spiraling inequality and exploitation

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Field Work Sustainable Finance Hub Building on a decade of investment road shows Heartland organized four Sustainable Finance Hub convenings as part of our work on the Marshall Plan for Middle America MP4MA and Reimagine Appalachia Four Heartland Network Partners joined with US DOL Secretary Marty Walsh DOE Fund Director Jigar Shah Congressman Andy Levin eleven state treasurers nine mayors and 800 more investment manufacturing energy development and union leaders We assisted Pittsburgh s pension plan in adopting a responsible investment policy and also contributed pension and labor standards content for the MP4MA which has been submitted to the Biden Administration Congressman Andy Levin joined the initial MP4MA convening in 2020 to announce his Sustainable Investment Policy Act DOE Loan Fund Director Jigar Shah spoke at the fourth Hub event The LPO oversees over 40 billion in loan authority across manufacturing innovative finance and tribal energy projects US DOL Secretary Marty Walsh spoke at the Fall 2021 MP4MA Launch Walsh spoke to the importance of a strong labor movement to ensure a trained and skilled workforce along with new apprenticeship opportunities in Biden s Build Back Better plan

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OUR SUPPORT SYSTEM

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Tom Croft MPA Executive Director Bob Value CTP Deputy Director Carrie Mihalko MPR Chief of Staff Anita Prizio Outreach Specialist Nancy Sweeney Staff Accountant Kristen Estell Heartland Outreach Specialist CONSULTANTS Jack Bardol MBA CPA Donita Rudy CTP Joel Steiker MBA Deb Lutz MBA CTA Northwest Regional Director Patrick Meese Central Regional Director Greg Olson MBA Southeast Regional Director Michael Perfetti Southwest Regional Director Gary Wickham Northeast Regional Director

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Winnie Akrong Fellow William Allen Fellow Jakob Daucher Fellow Constance Tyne Fellow Michael Carvalho Fellow DU LAW CLINIC Jeff Kording Schuyler Smith Arlia Duarte Alexia Porche Taylor Martucci DU Law Clinic Malika Fields DU Law Clinic Mario Lombardi DU Law Clinic

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The staff wishes to thank all of our Board members 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 Charles Bennett Witherell Rep Austin Davis Colleen Wooten Southeast PA Advisory Board Sen Bob Mensch Jean Andrews Joe Messner Jr Kevin Busza David Niles Patrick Clancy Peter Rapp Robert Cormack John Shegda Marybeth DiVincenzo Suzanne Smethers Dan Fogarty Gary Smith Jeffrey Gossner Lindsay Szejko Matt Hancock Joel Steiker Tom Krol Bud Tyler Jaimyn Westenhoefer 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 John Kingsley LucyAnn Vierling Rep Ryan Mackenzie Ron Vogel Doug Warfel Central PA Advisory Board Melanie Erb Jill Collier Neil Fowler Sheri Collins Kenetha Hansen Marty Culp Steve Herzenberg Derrick Donnell Dan Kuba Shaun Donovan Russ Lawrence Robert Duck Tom Matthews k n a h T u o y

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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 Jennifer Berrier Executive Deputy Secretary Willian Trusky Deputy Secretary Sheila Ireland BWPO Director Dan Kuba BWDA Director Brenda Duppstadt 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 Ed Gainey and the Pittsburgh City Council along with former Mayor Bill Peduto 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 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 and Tom s co author for a new book chapter published by Temple University Press Sincere thanks to our Heartland Capital Strategies Governing Board Officers Deborah Nisson CRE Consultant Representing Ullico Investment Advisors Steve Sleigh Owner Sleigh Strategy 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 and thanks to the great crew at Resilient Cities 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

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Feel free to reach out to us if you have any questions 1 SVA SEWN Headquarters Pittsburgh 412 342 0534 sewn steelvalley org sewnsw steelvalley org 4 Southeast SEWN Reading 215 776 0130 sewnse steelvalley org 2 Central SEWN Harrisburg 717 901 6030 sewncentral steelvalley org 5 Northwest SEWN Erie 814 454 7191 x148 sewnerie steelvalley org 3 Northeast SEWN Bethlehem 610 849 2735 sewnne steelvalley org Powered by the SVA