Hidden Assets for Economic & Community Development" Spencer County, IndianaPresentation Transcript
“Hidden” Assets for Economic & Community Development February 1, 2012 – Spencer County, IN Nick Held & Scott Hutcheson
Goals for Today• Learn about our community‟s “hidden” economic and community development assets• Understand how other communities are developing asset-based economic growth strategies• Consider how our community can better leverage our unique assets
Our Grandparents Built the Indiana Economy on Our Assets • Rich soils • Waterways: Lake Michigan and the Ohio River • Crossroads of AmericaWhat were our community’s greatest economicassets 100 years ago?
Our Grandchildren Will Inherit anEconomy Based on a New Set of Assets• Talent & Brainpower• Innovation & Entrepreneurship• New Narratives• Quality, Connected Places• New Ways to Collaborate
Five Asset NetworksK-12 New BusinessesWorkforce Training Small BusinessesHigher Education Growing BusinessesCapacity for Innovation Partnerships w Strategic Alliancesw New ModelsInfrastructure StorytellersBroadband Social MediaIncubators HeritageSocial Capital Folklore
Focusing on Assets: A Glass Half Full 1. The Talent of Our People 2. Our Capacity for Innovation 3. Our Fastest Growing Companies 4. Our Most Vibrant Industries 5. Our Skills for Telling New Stories 6. Our Ability to Connect People & Ideas 7. Our Capacity to Invest in our Civic Economy
The Talent of Our People: Occupational Clusters• An “Occupational Cluster” is a group of related occupations• The Purdue Center for Regional Development has defined 21 basic Occupational Clusters• Many communities have a higher concentration than average of one or more clusters• Occupational Clusters can be part of an economic development strategy
Occupational Cluster: Ideas in ActionBring together Information Technologyprofessionals to foster new ideas for hightech start-ups
Occupational Clusters: The Talent of Our PeopleLQ = Location Quotient. The US LQ for each cluster is set at 1.00.Anything above that means there is a greater concentration than theoverall US. For example, an LQ of 1.80 means that a cluster had80% more jobs than the US.
Agribusiness & Food Technology• Farm, ranch, and other • Veterinarians agricultural managers • Pesticide handlers, sprayers,• Farmers and ranchers and applicators, vegetation• Purchasing agents and buyers, • Supervisors, farming, fishing, farm products and forestry workers• Food scientists and • Agricultural inspectors technologists • Animal breeders• Agricultural and food science • Log graders and scalers technicians • Water and liquid waste• Biological technicians treatment plant and system• Chemical technicians operators• Farm and home management advisors
Occupational Clusters: Questions to Consider• Did a look at Occupational Clusters give us any new insights?• What explanation might there be for our occupational strengths?• Do we need to find out more about our Occupational Cluster assets?
The Talent of Our People: Our Capacity for Innovation• Capacity for Innovation can provide valuable insights• Innovation is defined as the new products, services, processes, and business models that get translated into business growth• The Purdue Center for Regional Development has created an Innovation Index• The index is a simple way to look at lots of different factors related to innovation.
Innovation Index: Ideas in ActionThink of “economic churn” as an asset andlaunch a neighborhood-basedentrepreneurship program
Our Capacity for InnovationSpencer
Our Capacity for Innovation
Innovation Index: Questions to Consider• Did a look at Innovation Index give us any new insights?• Which of the index factors that showed good capacity did you find most interesting?• Do we need to find out more about our innovation assets?
Our Fastest Growing Companies: Second-Stage Firms• Most economic growth comes from 2nd-Stage firms – Privately-held firms – 10-99 employees – $750K-10 million in annual revenue – Dealing with growth issues instead of survival issues – Intend and capacity to keep growing
What Do Second-Stage Businesses Need?• Help in re-articulating and realigning with their Core Business Strategy• Market Intelligence to answer important questions• Leadership & management team development to makes sure people are slotted right
Second-Stage Firms: Ideas in Action Littleton, Colorado• Littleton, CO developed and began to execute the strategy in 1989• Focused on “wealth” creation not “job” creation• Eliminated all incentives and tax breaks for business recruitment• Since 1989, more than doubled the number of jobs from 15,000 to 35,000• Sales tax revenue tripled from $6.8 million to $19.6 million
Second Stage Firms in Our Community Establishments Jobs Size of Firm Indiana Spencer Indiana SpencerSelf-Employed 33% 40% 6% 9%Stage 1 (1-9) 57% 53% 30% 34%Stage 2 (10-99) 9% 6% 37% 38%Stage 3 (100-499) .5% 0.5% 15% 20%Stage 4 (500+) 0% 0% 12% 0%
Second-Stage Firms: Questions to Consider• What insights do we gain by considering the role of second-stage companies in our local economy?• What do we currently offer our second-stage firms? – Companies to Watch – Participation in the Indiana Business Growth Network
Vibrant Industries: ClustersIndustry Clusters can benurtured and supported – Articulated – Activated – Accelerated – Accessing
Industry Clusters: Ideas in Action Appalachian Ohio’s Salsa Cluster• 20-plus boutique salsa businesses in the region• $700,000 annual sales among new businesses• Trains over 200 existing and emerging entrepreneurs annually• 350 gallons and 445 lbs of fresh and preserved foods delivered to the region‟s food pantries each year
Industry Clusters: Our Community’s Most Vibrant Industries Cluster Spencer IndianaPrimary Metal Manufacturing 9.86 2.12Transportation Equipment Manufacturing 3.95 2.55Forest and Wood Products 3.59 1.45Agribusiness, Food Processing & Technology 3.06 1.17Transportation & Logistics 2.86 1.46Energy (Fossils &Renewables) 1.43 1.05Arts. Entertainment, & Visitor Industries 1.30 .88Education & Knowledge Creation 1.08 .97Advanced Materials 1.07 1.57 Number of Establishments
Primary Metals ManufacturingIndustries in the Primary Metal Manufacturing subsector smelt and/orrefine ferrous and nonferrous metals using electrometallurgical and otherprocess metallurgical techniques.Establishments in this subsector also manufacture metal alloys andsuperalloys by introducing other chemical elements to pure metals.
Industry Clusters: Questions to Consider• Did a look at Industry Clusters give us any new insights?• What explanation might there be for our industry strengths?• Do we need to find out more about our Industry Cluster assets?
New Narratives: Telling Stories:• Every community has a “narrative” or a story that is being created.• We need to pay attention to the story we are telling ourselves and the one those outside our community are telling about us.• We have the power to shape these narratives.
Lots of Ways to Create Stories…
New Narratives: Ideas in Action L.A.’s Sunset Strip • The Sunset Strip in LA was in decline • The ownership of the famed “Roxy” nightclub began using Twitter • Others followed, a new story emerged, and the neighborhood has been transformed
New Narratives: What’s the Buzz …first time in Rockport, IndianaCant wait to be back in the great city of Rockport, Indianatomorrow! #Godscountry
Quality Connected Places: InfrastructureTraditional Emerging• Roads & Interstates • Sidewalks• Rail • Trails• Water • Bike Lanes• Electricity • Civic Spaces• Water & Sewer • Third Places • Broadband • WiFi
Public Spaces: Creating Economic, Social, and Environmental ValuePublic space is all around us, a vital part of everyday urban life: thestreets we pass through on the way to school or work, the placeswhere children play, or where we encounter nature and wildlife; thelocal parks in which we enjoy sports, walk the dog and sit atlunchtime; or simply somewhere quiet to get away for a momentfrom the bustle of a busy daily life. In other words, public space isour open-air living room, our outdoor leisure centre. The Value of Public Spaces: How High Quality Parks & Public Spaces Create Economic, Social, & Environmental Value, Bartlett School of Planning, University College London.
Public Spaces: Ideas in Action Three Oaks, MI• Renovated dilapidated downtown theatre to show classic films – Opened in 1996 with a showing of Citizen Kane.• Opened art gallery in the lobby• Now a „fine arts” theatre• Averages over 1,000 customers per week• Community now hosts film festivals
Public Spaces• Get a “grade” of 111.6 on Public Amenities (Changeable)• Get a “grade” of 104.2 on Public Amenities (Static)
Civic Infrastructure Continuum Trust Co-Creation Co-Execution Turf Sharing Resources Sharing Information Mutual AwarenessAcknowledgment Exploration Cooperation Collaboration InnovationTIME You have to walk before you run Adapted from Collaboration Continuum from ACT for Youth
Investing in Our Civic Economy• Every community needs civic entrepreneurs.• Even civic entrepreneurial ventures need “seed” capital.• Every community has the capacity to invest in civic entrepreneurship and new collaborations that create a health civic economy. “Civic entrepreneurs help communities collaborate to develop and organize their economic assets and to build productive, resilient relationships across the public, private, and civil sectors. They forge the ties that bind economy and community for their mutual benefit.” - Center for Community Economic Development, University of Wisconsin
Investing in Our Civic Economy: Capacity for Philanthropy • Millionaires and the Millennium report found that between 1998-2052 $41 trillion in wealth will transfer from one US generation to another. • In 2005 the Indiana Grantmakers Alliance commissioned a study on the transfer of wealth in Indiana. The study was updated in 2010.The Smiths have lived in rural Boone County their entirelives and have been tremendous stewards of thecommunity. They have three grown children one of whomlives in nearby Indianapolis and the others on the WestCoast. When they pass on their wealth, unless they havemade other arrangements, it will leave Boone Countyforever.
Our Community’s Transfer of Wealth• 2010 net worth of all Spencer County households is estimated to be $790 million.• Over the next 10 years (2010-2020), an estimated $202 million will be available to transfer between generations in Spencer County households. $688 million over the next 50 years• If just 5% of that amount were to be captured by local non-profit organizations, such as community foundations, for the betterment of Spencer County communities, those organizations would realize $11 million. This same 5% capture over 50 years is an estimated $34 million.• Using a conservative 5% annual rate of return on the endowment amount could ultimately yield $530,000 each year at the end of 10 years to support community economic development and other charitable investments. After 50 years, approximately $1.7 million would be generated each year. While never touching the principle.
Transfer of Wealth: Ideas in Action Some communities have launched informationcampaigns and enlisted the participation of financialplanners to share this opportunity with their clients.
The Real Power Is in…Combining Assets in New andInnovative Ways – Linking andLeveraging
Linking & Leveraging: Success Story Medora, Indiana + + =
Linking & Leveraging: Success Story + + =
Small Successes Add UpNo Single Big Strategy Many Modest Strategies
Our Community’s Hidden AssetsStrong Occupational Clusters Second Stage Firms Capacity for Innovation Great Public Spaces Strong Industry Clusters Capacity for Philanthropy Positive Buzz
Purdue Extension: Your Partner inEconomic and Community Development
More Information• Occupational Clusters - http://www.statsamerica.org/innovation/data.html• Innovation Index - http://www.statsamerica.org/innovation/data.html• Second Stage Firms - http://www.youreconomy.org/• Economic Gardening - http://www.littletongov.org/bia/economicgardening/• Industry Clusters - http://www.statsamerica.org/innovation/data.html• ACEnet (Salsa Cluster) - http://www.acenetworks.org/• Twitter Search - http://twitter.com/#!/search-advanced• Broadband Data - http://www.broadband.gov/• Transfer of Wealth in Indiana - http://www.waynecountyfoundation.org/documents/ IndianaTransferofWealthUpdate.pdf• National Maple Syrup Festival – http://www.nationalmaplesyrupfestival.com• Purdue Guitar Summer Camp - http://metalsound.tech.purdue.edu/default.aspx