Service providers flourish They include Comcast, Vanguard and other companies dominant in their fields.

December 10, 2007|By Joseph N. DiStefano INQUIRER STAFF WRITER

From modest beginnings, a handful of Philadelphia-area companies grew rapidly in the 1980s and 1990s to become the nation's top mass-market service sellers. The region gave birth to dominant players in credit cards and mutual funds, prescription drugs and cable television, cafeterias and financial software.

This collection of service companies spreads across the region to form a diverse elite that does not much resemble the old power center of Philadelphia-based railroads, manufacturers and banks. Their customers are national and global, not primarily regional, and they do not often act as a single group with common goals, though Mayor-elect Michael Nutter and others are trying to get them to work more closely.

FOR THE RECORD - CLEARING THE RECORD, PUBLISHED DECEMBER 14, 2007, FOLLOWS: In the Top 100, a story on Philadelphia's flourishing service firms did not identify Unisys Corp.'s main business. It provides computer services and servers.

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If metro Philadelphia has grown more slowly than the world financial and communications center of New York or the government-fueled defense and technology industries surrounding Washington, its service companies have kept the region prosperous while other manufacturing centers such as Pittsburgh and Detroit have stagnated.

Some of the biggest local players clearly have roots in the region's industrial past. Less clear is which of today's big firms contain the seeds for growth in the next generation.

Among the service companies with national reach and local roots:

The Vanguard Group Inc., the largest mutual fund complex, started as an arm of a Philadelphia investment firm in 1973. Founder John Bogle, now retired, won free publicity for his fledgling firm with his folksy, frugal approach to retailing stock and bond funds. His successor,

John Brennan, has expanded and diversified the company's product list. Vanguard employs nearly 9,000 people in offices along U.S. 202 near Malvern, making it the largest employer in wealthy Chester County.

Comcast Corp., the largest cable television company, grew out of a 1960s-era investment portfolio assembled by Wharton School graduate Ralph Roberts, a New Yorker who married into a Philadelphia business family. Deal-maker Roberts more than held his own in tough negotiations with media powers in New York and Los Angeles, regulators in Washington, and merger targets and governments in hundreds of local markets. His son and successor, Brian, has made Comcast a power in telephone and Internet service.

Its glass-walled office tower is Philadelphia's tallest building, topping rival Verizon Communications Inc.'s red high-rise next door.

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