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Igl Board Of Realtors April 2011

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Presentation to Iowa Great Lakes Board of Realtors about socio-economic data and economic development efforts in the region.

Presentation to Iowa Great Lakes Board of Realtors about socio-economic data and economic development efforts in the region.


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  • 1. Economic Development in the Iowa Lakes Corridor Region
  • 2. Economic Development Defined• “the creation of wealth and jobs for the improvement of quality of life”• “a process that influences growth and restructuring of an economy to enhance the economic well being of a community”
  • 3. Economic Development Defined• The main goal of economic development is improving the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life.• There is no single strategy, policy, or program for achieving successful economic development. Communities, regions, and states differ in their geographic and political strengths and weaknesses.• Each community, region and state, therefore, will have a unique set of challenges and opportunities for economic development.
  • 4. Corridor Mission & Goals … created in 1992 to foster, encourage, aid, promote or otherwise assist in the economic growth and development of Buena Vista, Clay, Dickinson and Emmet Counties• To become recognized as the most attractive region in Iowa for entrepreneurs and new ventures• To assist in the addition of 150 new primary jobs per year• To attract and retain workers• To build and maintain partnerships More Businesses More Jobs More People More Partners
  • 5. Iowa Lakes Corridor Region
  • 6. Demographics• Region population is approximately 63,000 (-3% from 2000; -9% from 1980; -4% from 1970)• While the area has natural growth (more births than deaths), the out-migration of individuals is reducing the area’s total population.• Projections indicate more of this to occur over the next 20+ years, particularly in Clay and Emmet Counties
  • 7. Demographics• Hundreds of current job openings in the area; shortage of specific skills; more jobs and employers requiring skill sets – Polaris, Eaton, GKN, Maurer Mfg., Cycle County Accessories, Pure Fishing, Rosenboom, Thinix Technology, Sara Lee, Daybreak, health care, education – Seasonal (Hospitality and construction)
  • 8. DemographicsData Sources: U.S. Department of Commerce. 2010. Bureau of Economic Analysis, Regional Economic Information System,Washington, D.C., Table CA30
  • 9. DemographicsData Sources: U.S. Department of Commerce. 2010. Bureau of Economic Analysis, Regional Economic InformationSystem, Washington, D.C., Table CA30
  • 10. In/Out Migration – Corridor Region Households Year In Out Net Income Swing PHH 2007-2008 754 729 25 $131,623.77 $5,265 2006-2007 696 777 -81 -$3,677,110 $45,396 2005-2006 710 772 -62 -$939,247 $15,149 2004-2005 662 683 -21 -$16,900 $805 2003-2004 684 690 -6 $1,755,131 -$292,522 2002-2003 678 706 -28 $2,152,666 -$76,881 2001-2002 693 778 -85 -$4,734,780 $55,703 2000-2001 635 722 -87 -$2,748,639 $31,594 1999-2000 711 751 -40 -$1,200,275 $30,007 Cumulative 6,223 6,608 -385 -$9,277,531 $24,097 Average 691 734 -43 -$2,541,606 $59,414Source: U.S. Internal Revenue Service (7/23/2010 ).All the dollar amounts are in 2008 dollars.
  • 11. In/Out Migration – Corridor Region People Average Annual Gross Household Income Year In Out Net In Out 2007-2008 1,383 1,270 113 $38,045 $39,169 2006-2007 1,301 1,397 -96 $41,349 $41,771 2005-2006 1,307 1,285 22 $36,586 $34,864 2004-2005 1,245 1,228 17 $35,961 $34,880 2003-2004 1,261 1,183 78 $39,131 $36,247 2002-2003 1,273 1,274 -1 $39,766 $35,140 2001-2002 1,271 1,433 -162 $36,306 $38,425 2000-2001 1,207 1,252 -45 $41,750 $40,526 1999-2000 1,343 1,330 13 $39,596 $39,085 Cumulative 11,591 11,652 -61 Average 1,288 1,295 -7 $38,721 $37,790 Source: U.S. Internal Revenue Service (7/23/2010 ). All the dollar amounts are in 2008 dollars.
  • 12. School Enrollment in the Corridor Region School Year 2000-2001 2009-2010 Change Percentage ChangeState of 492,022 474,227 (17,795) -3.62%Iowa Buena 3,810 3,45 (360) -9.45% Vista 0 Clay 2,822 2,49 (330) -11.69% 2 Dickinson 2,800 2,40 (400) -14.29% 0 Emmet 1,944 1,65 (294) -15.1% 0Region 11,376 9,992 (1,384) -12.17%Total
  • 13. Workforce• Workers are mobile• Jobs are following the talent• Talent is attracted to quality places• Skilled labor pool is critical factor for employers• Two approaches – Retaining existing talent (education; retraining/up-skilling; new opportunities; quality places) – Attracting others (internships; new opportunities; quality places )• Fostering young workforce – Junior Achievement, youth entrepreneurship training, business-school partnerships
  • 14. Entrepreneurship & The Economy• A new study by the Ewing Marion Kauffman Foundation, "The Economic Future Just Happened," challenging economic times can serve as the rebirth of entrepreneurial capitalism, leading to the creation of much-needed new jobs. – Study found that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies (3M, Apple, Buffalo Wild Wings, IBM, GE, Microsoft, Gallup, …) – The report also suggests a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.
  • 15. Entrepreneurship & The Economy• From 1980 to 2005, firms less than 5 years old accounted for all net job growth in the United States This data set also shows that without startups, net job creation for the American economy would be negative in all but a handful of years. If startups excluded, an analysis of the 2007 Census data shows that young firms (defined as one to five years old) still account for roughly 2/3 of job creation, averaging nearly four new jobs per firm per year.• Of the overall 12 million new jobs added in 2007, young firms were responsible for the creation of nearly 8 million of those jobs
  • 16. Entrepreneurship & The Economy• In 2008, an average of 0.32 percent of adults created a new business each month, equaling about 530,000 new businesses per month.• The highest rate of entrepreneurial activity belongs to the 55 – 64 age group over the past decade. The 20-34 age bracket has the lowest. Most high-tech founders come from middle-class or upper-lower-class backgrounds, are well- educated and married with children.
  • 17. Income & Employment Establishments 1992 2001 Change % 2008 Change % Total 5,946 6,191 245 4.12% 7,610 1,419 22.92% Noncommercial 375 581 206 54.93% 520 -61 -10.50% Nonresident 161 254 93 57.76% 229 -25 -9.84% Resident 5,410 5,356 -54 -1.00% 6,861 1,505 28.10% Self employed (1) 1,632 1,910 278 17.03% 2,894 984 51.52% Stage 1 (2-9) 3,350 2,898 -452 -13.49% 3,430 532 18.36% Stage 2 (10-99) 406 528 122 30.05% 520 -8 -1.52% Stage 3 (100-499) 22 19 -3 -13.64% 17 -2 -10.53% Stage 4 (500+) 0 1 1 0 -1 -100.00% Jobs 1992 2001 Change % 2008 Change % Total 41,370 48,357 6,987 16.89% 40,638 -7,719 -15.96% Noncommercial 10,944 12,207 1,263 11.54% 5,347 -6,860 -56.20% Nonresident 5,309 7,905 2,596 48.90% 6,773 -1,132 -14.32% Resident 25,117 28,245 3,128 12.45% 28,518 273 0.97% Self employed (1) 1,632 1,910 278 17.03% 2,894 984 51.52% Stage 1 (2-9) 10,873 9,546 -1,327 -12.20% 10,347 801 8.39% Stage 2 (10-99) 9,019 12,555 3,536 39.21% 12,329 -226 -1.80% Stage 3 (100-499) 3,593 3,584 -9 -0.25% 2,948 -636 -17.75% Stage 4 (500+) 0 650 650 0 -650 -100.00%Source: Youreconomy.org; Edward Lowe Foundation
  • 18. Entrepreneurs & WealthTransfer of Wealth - Iowa $531 Billion in 50 years$180$160$140$120$100 $80 $60 $40 $20 $0 2000-2009 2010-2019 2020-2029 2030-2039 2040-2049 State of Iowa
  • 19. Transfer of Wealth – Corridor Region From 2000 TO 2049 - $13.5 billion• Buena Vista County: $3.8 billion• Clay County: $3.4 billion• Dickinson: $4.5 billion• Emmet: $1.8 billion
  • 20. American Household Wealth by Key Variable, 2007 Variable Mean Net WorthTop 10% of Households by Net Worth $3,736,000Top 10% of American Households by Income $3,105,000By Type of Work – Self-Employed Americans $1,840,000Occupation – Professionals $1,048,000Education – College $1,032,000Age – 65-74 Cohort $ 954,000Family Status – Couples without Children $ 756,000Home Owners $ 732,000Race – White Households $ 651,000 Entrepreneurs & Wealth – rupri Center for Rural Entrepreneurship, Feb. 2011
  • 21. Average U.S. Net Worth by Work StatusSource: Board of Governors of the Federal Reserve System, The Survey of Consumer Finances, 2007
  • 22. Corridor Focus on E Economy• Pool of successful entrepreneurs and locally- owned companies• Champions for entrepreneurship• # of large global companies in region• Seasonal industries (tourism, construction)• Rural location and challenges with transportation network and size of labor pool• Greatest opportunity for long-term wealth and jobs to remain in region; remain vibrant
  • 23. Corridor Entrepreneurial Programs - Youth• Okoboji Entrepreneurial Institute• Middle School Entrepreneurship Academy• Be Your Own Boss Seminar• High School Business Plan Competition• Teacher Seminars• Junior Achievement (JA)
  • 24. Corridor Entrepreneurial Programs• Food Entrepreneur Seminar - From Recipe to Reality; other industry-specific training• Kauffman FastTrac® NewVenture™ and FastTrac® GrowthVenture™• Community Seed (venture) Capital Fund• Entrepreneur on staff – Business Coaching – Commercialization Services – Talent Recruitment• Research, Information & Referral• Networking – Club E; WE; Women-in-Business
  • 25. Going Forward – Sustaining and Expanding Entrepreneurship• Iowa Lakes Corridor Entrepreneurial Development Endowment Fund – Okoboji Foundation Family of Funds (Community Foundation of Greater Des Moines)• Entrepreneurship is a workforce initiative; workforce is an entrepreneurship initiative – our two top priorities – Significant investment in workforce recruitment – nearly all marketing dollars devoted to attracting people
  • 26. Workforce Initiative• Job Fairs and Career Fairs• Radio, Print, Banners, Billboards, Internet, Social Media ads• Internships and internship grants• Job Center – www.lakescorridor.com/work/job-center• Employment Directory• Spousal Employment Network• Regional partnerships for recruitment – Law enforcement, hospitals – Regional profile vs. individual community profile
  • 27. Workforce Initiative• Research – Laborshed Studies – Fringe Benefits Profile – New Movers Study – Skillshed Analysis• Talent/management recruitment for entrepreneurial start-ups or existing companies
  • 28. Workforce Initiative• Fostering Young Workforce – School & business connections – Junior Achievement – Internships – Youth entrepreneurship programs
  • 29. Future Initiatives & Other Factors• Growing population base• Housing• Young professionals group(s)• Business coaching program• Add’l. opportunities for developing young entrepreneurs• Add’l. training/retraining opportunities
  • 30. Q&AFor the regional or individual county socio- economic profiles, visit: www.lakescorridor.com/partner-with- us/charting-the-course
  • 31. Contact information

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