Northwest Indiana: Growing Businesses, Growing the Regional Economy

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These are slides used on May 28 at Purdue North Central in a workshop on business-growth strategies for economic development.

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Northwest Indiana: Growing Businesses, Growing the Regional Economy

  1. 1. Growth: Growing the Economy, Growing Businesses Scott Hutcheson, Ph.D. Purdue Center for Regional Development
  2. 2. 4 The predominant economic development sales pitch has been cheap taxes cheap land cheap labor cheap utilities
  3. 3. Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011 5 IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011
  4. 4. Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011 6 IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011
  5. 5. Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011 7 IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011 …and Indiana’s one of the “best” in the U.S.
  6. 6. Niche: Existing Business Base
  7. 7. Stage Four: 500+ Employees Stage Three: 100-499 Employees Stage Two: 10-99 Employees Stage One: 1-9 employees
  8. 8. Stage Four: 500+ Employees Stage Three: 100-499 Employees Stage Two: 10-99 Employees Stage One: 1-9 employees
  9. 9. Second Stage Companies • 10-99 employees • Revenue of $750,000 to $10 million • Local owned/controlled • Privately-held businesses • Dealing with growth issues instead of survival issues • Intent to grow
  10. 10. Northwest Indiana 2nd Stage Firms 2012 Lake LaPorte Porter Pulaski Starke Jasper Newton
  11. 11. Northwest Indiana 2nd Stage Jobs 2012 Lake LaPorte Porter Pulaski Starke Jasper Newton
  12. 12. What Do Second Stage Companies Need? • Information • Infrastructure • Connections Gibbons, C. (2010). Economic gardening. Economic Development Journal 9.3:5.
  13. 13. • Help in articulating and realigning with their core business strategy • Market intelligence & GIS to answer important questions • Guidance on search engine optimization and effective use of social media • Leadership & management team • development to make sure people are • slotted right Indiana Business Growth Network
  14. 14. Our Certified IBGN Team Purdue Center for Regional Development Hoosier Heartland Small Business Development Center Parrish Library of Management & Economics Erik Deckers, co-author of No Bull-&%$# Social Media
  15. 15. IBGN partners with local and regional economic & business development groups to offer a business growth-focused economic development strategy to their community or region. Some of the ways we can assist companies include: • Identifying qualified sales leads by sorting extensive databases • Mapping geographic areas to facilitate targeted marketing efforts • Reviewing strategies related to commodity and/or niche markets • Examining social media utilization to connect with customers • Deploying search engine optimization to expose a targeted website to more customers Indiana Business Growth Network
  16. 16. $250K with of databases & analytic tools
  17. 17. Manufacturer of diesel-powered pumps & equipment for the construction industry 12 employees $3 million in revenue annually Strategic Questions • Do we have the right business model? • Where do we stand in comparison to our competitors? • Are we fully optimizing our website & social media? • How does the water table differ in different parts of our region? Strategic Information Provided • Detailed analysis on competitor’s market share and types of products offered • Search engine optimization recommendations including better ways for international customers to find them • GIS analysis of water tables in target markets Strategic Decisions Made • Repositioned bidding strategy • Added SEO to website • Revised market strategy based on water table information (different geographies require different pump features Results • Added 5 new positions. Case Study #1
  18. 18. Provider of outsourced technology management 16 employees $4 million in revenue annually Strategic Questions • What firms are about our size but serve a national client base? • If we were to expand beyond our region what other areas make sense? • How can we better use social media? Strategic Information Provided • Identification of and information about peer firms that serve national client base • Profiles of six additional regions that seem to be a good fit for firm’s services • Recommendations for a blog-based social media strategy Strategic Decisions Made • Retooled website • Began a blog and associated social media strategy • Began marketing to three additional regions Results • Expanded to three additional regions • Added 1 new positions. Case Study #2
  19. 19. Results Source:http://www.growfl.com/downloads/2013- 08%20GrowFL%20Performance%20Analysis%20VERSION %202%20FINAL.pdf
  20. 20. The IBGN Process • Companies access IBGN through their LEDO, REDO, Chamber, etc. • Fill out a Company Profile, sign mutual NDA • Schedule call with IBGN Team Leader (1 hour) • Schedule Call with IBGN Team (1hour) – Identify 4-5 growth-related questions that need answered – Team does 30 hours worth of work • Information and communication occurs on a secure website • Company is contacted 6 months and 12 months afterward
  21. 21. For More Information or to Connect Scott Hutcheson, Ph.D. Purdue Center for Regional Development Purdue Extension Purdue University 203 Martin Jischke Drive 765-479-7704 (mobile) hutcheson@purdue.edu www.linkedin.com/in/scotthutcheson/ www.twitter.com/jshutch64 www.facebook.com/scott.hutcheson http://www.slideshare.net/jshutch/

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