Engaging Communities for Economic Development Staying competitive in communitydevelopment while the world is changing around us!
What will the election of _______ mean for economic developers?1) Continued significant reduction in federal budgets2) Focus on private sector oriented approaches vs. direct government subsidy3) Shorter term Congressional approvals for critical programs4) Potential reorganization of key government agencies involved in economic and community development
Engaging Communities for Economic Development Major (and long term) Economic and Demographic Shifts Impacting Community and Economic Development Ten Focused Strategies to keep your Community Competitive in Economic Development
Major (and long term) Economic and Demographic Shifts Impacting Community and Economic DevelopmentEconomy Workforce Technology Structural Older Workforce Changing Change Business Models Younger WorkforceGovernment Wired EconomicFiscal Issues Workers Development Traveling Further
We are not replacing jobs lost through therecession
The recovery from this recession is takinglonger than prior recessions
Distress on city / county budgets as therecession ripples through the economy 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
Public sector employment has declinedthrough the recession after years of growth
Major programs at the federal and statelevels have experienced major cuts. 12 10 8 6 4 2 0
We are not replacing our retiring workerswith our new workers Over the next twenty years there will be 76 million Baby Boomers old enough to retire… ….but only 48 million new workers will be available in the talent pipeline to fill their positions.
What percent of people have ever had atattoo or body piercing? Over 40: 10% Under 40: 40%
Employers have significantly increasedtheir use of part time workers.
Education continues to defineunemployment rates.
Out of necessity, workers are more mobile--- they will travel further for a job Dayton Montgomery County 2002 2010 2002 2010Travel less than 10 miles 66.20% 60.50% 60.50% 54.20%Travel 10 to 24 miles 19.50% 22.30% 22.60% 23.90%Travel 24 to 50 Miles 7.90% 8.70% 8.80% 9.70%Travel Over 50 Miles 6.30% 8.60% 8.10% 12.20%
5. The Internet = Speed, democratizationof information
6. Technology: Impact on Manufacturing,Service, Distribution
The 1099 Economy is becoming a moreimportant part of your community 52 percent of all small businesses are home basedand 78.5 percent employ only the sole proprietor. Of the 21.5 percent that do employ anyone, only10.7 percent of that group will employ more than 20people. There are 331,000 self-employed workers in Ohio,making up 6.00% of the total workforce, up by 5.00%from 2001. The Average Wage of a self-employedworker in Ohio is $25,331.
Entrepreneurship: More smallbusinesses…working for big business In 2010, there were about 28 million smallbusinesses in this country, responsible for 49.2 percentof private sector employment. But there were also 18,500 firms with 500employees or more, defined as big business, and theyemployed the other 50 percent or so.
Bank restructuring will continue to limitfinancing options “Politicians and senior regulators consistently and publically profess the value and importance of community banks to our economy, yet their recent actions suggest otherwise…The flood of new regulation, demands for more capital, harsh enforcement plus an unexplained three-year-old de facto moratorium on de novo bank charters lead one to believe that Washington really wants fewer community banks.” The American Banker, October, 2012
There is a significant consolidation ofbanking institutions
The number of community banks hasdeclined significantly
Death of the Big Deal in Economic And the Data Shows….Development• Total Projects: 93 (47 Expansion, 46 New)• Average Jobs: 181• High Jobs Number: 900• Average Square Feet: 157,000• Average New Jobs: 256• Average New Square Feet: 203,000• Big Deals: 1 Project; 1,500 jobs, Mfg. 1M SF Source: Site Selection Magazine, May 2012
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
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
1. Think “Strategic Doing” vs. “StrategicPlanning”• Network of Networks• Plan; Then Do, Then Plan Again• Go from planning to implementation• Know your goals and focus your efforts• Engage the Community and the Networks• Ed Morrison, Purdue University• What’s happening at EDA with their CEDS
2. Understand the ROI of your EconomicDevelopment Program• Cost / Benefit analysis for community investment of time and resources• Economic Development E > P• Fiscal Impact Analysis• EDA Triple Bottom Line: Equity, Environment, Economy• Political justification• Understand…and take…informed risk
3. Collaboration is the New Competition• 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
4. Make your collaborations effective• Look for the key development Levers that help move projects forward: – Transportation, Land Use, Regulation• Understand who does what best• Share back office resources to focus on the delivery of services
5. Place Matters: Enhance what makesyour community livable• Identify and leverage your strongest assets• Richard Florida: The Creative Class ?• What makes your community special?• Asset mapping on a local AND regional basis• Tactical urbanism
6. Double Down on Retention andExpansion• Sometimes the best R & E does not involve incentives but simply helps solve problems• Understand your business community and what helps it grow• Organized R & E program to track activity and performance• Don’t promise what you can’t deliver• R & E is still the Best Attraction Strategy• Cluster Strategy, Supply Chain, Key Partners
7. Expand workforce collaborations toinclude K-12 and Community Colleges• Realign workforce programs to focus on two key priorities: • Job Readiness training as a public priority • Specific skill training in direct partnership with employers• Engage employers more directly: Train for their job openings and for their future needs
8. Emphasize the Entrepreneurial Strategythat fits your community• Small Business• Economic Gardening• 1099 Economy• Incubation and Acceleration
9. Fine tune your financing and incentivetoolkit• Use state incentives strategically• Create local incentives that make sense for your community• Provide for transparency and accountability• The fewer the programs, the easier the deal• Stronger reliance on local financing and federal programs
10. Fine Tune your web presence and socialnetworking• 90% of the research by a site selection company is done BEFORE you are contacted• Keep your inventory of sites up to date• Have a user friendly website• Link your site with your regional economic development partner• Easily accessible public services
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?