Rising costs remain concern for workers, businesses in Erie

The daylong trip highlighted the region’s many opportunities and challenges. For instance, during a downtown walking tour, Hammack saw several redevelopment projects up close—some complete and some underway. And several local leaders highlighted successful collaborations across the business, nonprofit, and government sectors. But like many organizations across the Cleveland Fed’s District, some of them reported challenges with rising costs.

Inflation was a particularly big concern for the workers Hammack spoke with during a roundtable discussion. It’s forcing them to make tough tradeoffs. For instance, one man said he missed all of his son’s travel football games this spring because he couldn’t afford the gas.

Hearing directly from individuals and businesses “is a critical part of what I do,” Hammack said. The hard economic data has its advantages, like large sample sizes and rigorous collection methods. But it can’t tell you what’s happening right now—or why it’s happening, she said.

“It’s about really understanding what the choices are that everyday Americans are facing. . . . We have to create an economy that’s working for everyone,” Hammack told reporters after the downtown tour.

Downtown energy

The tour started at Modern Tool Square, where Hammack learned how developers turned the old manufacturing plant into a mix of apartments, offices, and retail.

Next, she headed down the street to the Ember + Forge coffee shop. There, founder Hannah Kirby talked about her efforts to turn it into a community hub, despite the challenges posed by the pandemic.

“It’s been a slow climb out of that hole, for sure,” Kirby said.

The tour ended at the Country Fair Flagship Store, a bigger, souped-up version of Country Fair’s 72 convenience stores.

Employees across the company’s footprint—which stretches from eastern Ohio to western New York—are feeling the pinch of higher costs. A growing number are asking to be paid daily to smooth out cash flow challenges, said Paul Rankin, vice president of retail marketing.

In-store traffic remains high, but customers are “just buying less,” Rankin said.

In addition to the downtown tour and the worker roundtable, Hammack also held a fireside chat with local leaders and toured the JTM Foods plant, which makes snack pies and other treats.

Toward the end of the trip, Hammack noted that Erie faces challenges much like those in other manufacturing-heavy cities in the Cleveland Fed’s District but that it also has some of the same advantages, such as strong cross-sector partnerships focused on economic development.

“People have such pride in their town,” Hammack said toward the end of the visit. “That really comes through.”

Growing ties

This was Hammack’s first visit to Erie since joining the Cleveland Fed in August 2024, and it’s just the latest example of the Reserve Bank’s efforts to deepen its ties to the region.

For instance, in early 2024, the Cleveland Fed formed its Northwest Pennsylvania Business Advisory Council, a group of 15 local leaders who regularly give Cleveland Fed staff insight into area economic conditions.

One of those advisory council members is Kyle Hinsdale, chief financial officer at JTM Foods. He helped lead the tour of the plant.

“It’s important that local industries, employers, and communities have a voice in conversations about the economy, and I’m proud to contribute perspectives that reflect the experiences of our employees and customers,” Hinsdale said.

About President Beth M. Hammack’s Around the District tour

President Hammack is visiting communities across the Fourth District as part of her Around the District tour to meet and connect with the people who live and work in all corners of the region and to gain a better understanding of how the economy is working in different communities. The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia. Hammack will use this information to inform her policy views and better represent the Fourth District around the Federal Open Market Committee table.