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EconDev Challenges


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Presentation to Mercer County Businesses and Students on March 26 about Economic Development Challenges in 2013

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EconDev Challenges

  1. 1. Spring Breakfast Forum Tuesday, March 26, 2013 Looking ahead at the future of Ohio’s Economy Mark Barbash Finance Fund
  2. 2. Finance Fund Assists SolarVision with Celina Renewable Energy Center
  3. 3. Major EconomicShifts areImpactingEconomicDevelopment
  4. 4. The recovery from this recession is takinglonger than prior recessions
  5. 5. We are not replacing jobs lost through therecession
  6. 6. Employers have significantly increasedtheir use of part time workers.
  7. 7. We are not replacing our retiring workers with our new workers Workers 80,000,000 60,000,000 40,000,000 20,000,000 0 Retirement Age Workers Talent Pipeline
  8. 8. The Internet is changing the way thateveryone does business!
  9. 9. Ohio and the Midwest are leading thenation in the Manufacturing Recovery
  10. 10. Ohio’s Economy is Expected to continue to Expand in 2013… 1994 2015 2013 2001National GDPOhio GDP 2009
  11. 11. Technology is changing Manufacturing,Service and Distribution
  12. 12. Economic Development is not about the And the Data Shows….“big deal”…it’s about knowing yourcommunity• Who are the largest employers in the community?• Who do the largest employers buy from --- and sell to?• What makes your community special? Why do people want to live in your community?
  13. 13. Even in Attraction….workforce & And the Data Shows….infrastructure rank higher than incentivesWhat Matters Most: Site Selectors Most ImportantCriteria 1. State and Local Tax Structure 2. Transportation & Utility Infrastructure 3. Land/Building Prices & Supply 4. Ease of Permitting and Regulatory Process 5. Workforce Skills 6. Local economic development strategy 7. Legal Climate 8. Availability of Incentives 9. State Economic Development Strategy
  14. 14. Understand the ROI of your EconomicDevelopment Program• Communities should have a Cost / Benefit analysis for investment of time and resources and incentives• Is your investment in economic development generating measurable benefits?• Communities should understand … and take … informed risk• Use incentives strategically and create local incentives that make sense for your community
  15. 15. The slower economic recovery is having animpact on local budgets Property Taxes based upon Valuation Income Taxes based upon Wages Property Taxes based upon Property Values Sales Taxes based upon Sales Revenue Fees and Transfer Payments from other sources
  16. 16. State & Local budgets are lagging therecovery
  17. 17. Regional Collaboration is the NewCompetition• Companies are looking for your ability to bring a wide variety of resources to the table• Regional collaboration: What is your community’s role in the region?• Expand your partnership to include workforce, land use, transportation, philanthropic, hospitals, permitting
  18. 18. Business and Industry think regional, stateand international supply chain The Solar Supply Chain in Ohio; WIRENET, 2011
  19. 19. Business and Industry think regional, stateand international supply chain The Shale Supply Chain in Ohio; EID, 2013
  20. 20. Workers are more mobile --- they willtravel further for a job…into the Region
  21. 21. The best economic development strategy isto support your existing businesses• Understand your existing business community and help it grow• Who do your existing businesses buy from, sell to, and partner with?• Don’t promise what you can’t deliver• Retention and Expansion is still the Best Attraction Strategy
  22. 22. Education and workforce training are keyto a successful economy• Realign workforce programs to focus on three key priorities: • Job Readiness training as a public priority • Specific skill training in direct partnership with employers • Technical training is needed because of the increasing computerization of tasks• Engage employers more directly: Train for their job openings and for their future needs
  23. 23. Education continues to define economicrecovery.
  24. 24. Emphasize a Small Business Strategy thatfits your community• Small Businesses buy from --- and sell to --- large businesses and employers• 28 million small businesses support 49.2 percent of private sector employment.• 18,500 large firms employed the other 50 %• 52 percent of all small businesses are home based.• 21.5 % of small businesses employ more than one person…only 10.7 percent of that group will employ more than 20 people.
  25. 25. What’s NOT Changing?• The need to develop a strategy is NOT changing• The need to develop strong partnerships is NOT changing• The need to provide quality services is NOT changing• The need to tailor your ED tools to the needs of your community is NOT changing
  26. 26. Key Questions and Next Steps Key Questions• Where are you, where do you want to be, how do you get there• How well do you know your community?• Have you established priorities, goals, tasks, with assigned leads?• Do you have a toolbox that is appropriate to your community and priorities?• Do you have a way of measuring performance and reacting?
  27. 27. Mark BarbashChief Operating OfficerFinance 774-7599