Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Staying Competitive in Economic Development

405 views

Published on

The challenge of keeping communities competitive is changing because of the nature of the economic recovery. This presentation to the Inland Northwest Partners provides some practical approaches to growing your town.

Published in: Economy & Finance
  • I pasted a website that might be helpful to you: ⇒ www.HelpWriting.net ⇐ Good luck!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Staying Competitive in Economic Development

  1. 1. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  2. 2. Changing Times: Staying Competitive in Economic DevelopmentMark Barbash Executive Vice President Finance Fund www.linkedin.com/in/markbarbash
  3. 3. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 • Part 1: What’s happening in the economy that’s impacting economic development • Part 2: What this means for economic development of our communities Staying Competitive in Economic Development
  4. 4. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Let’s remember how far we have come since the end of the recession: 1 minute, 38 seconds
  5. 5. 5
  6. 6. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Is our economy coming back? On the one hand…. On the other hand…
  7. 7. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 On the One Hand: Jobs are Coming Back .. 66th Straight Month of Growth
  8. 8. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Trend: Ohio’s economy is expected to continue recovery Bank Lending Appears to be Coming Back
  9. 9. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 … and Capital Investment is starting to come back….
  10. 10. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 On the Other Hand: almost 40% of potential workers are NOT looking for work
  11. 11. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 … and many people have only been able to find part time work
  12. 12. … and demographic trends are changing makeup of the workforce Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 The pipeline of younger workers is significantly less than the number of retirement age workers.
  13. 13. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 The number of banks has declined due to mergers & acquisitions
  14. 14. 14 … and most larger banks have exited the business of small business lending
  15. 15. 15 … and expensive financing from alternative lenders is growing rapidly
  16. 16. 16 … while we are appear to becoming less entrepreneurial over time
  17. 17. 17 The Inland Northwest Region is also experiencing an overall recovery
  18. 18. 18 And jobs in the region are recovering and projected to continue Job Growth and Trends: 2001 – 2025 / Percent Change
  19. 19. 19 But there some are disparities among the INW Regions 2005 2006 2007 2008 2009 2010 2011 2012 2013 Labor Force Eastern Washington and Western Idaho
  20. 20. Trend: Business Lending could show a turnaround Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 20 So what does this all mean for community leaders? • Economic recovery … with the economy is going through a major transition… • Globalization is continuing to challenge American communities • Productivity improvements because of technology changes • Demographics are shifting workforce, interest in urban areas & job skills
  21. 21. 21 How should community leaders respond?
  22. 22. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  23. 23. Strategy 1: Analyze and understand what drives your local and regional economy Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 • Who are the major employers • Which industries are growing • How does your economy support the community • How does your community support the economy
  24. 24. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Trend: Economies are defined by their Regions Strategy 2: Think, plan and act regionally Economic growth is not based on boundary lines.
  25. 25. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 69,507 people work in Inland Northwest and live outside the county Trend: Economies are defined by their Regions 80,502 people live in the Inland Northwest and work outside the county 248,026 people work & live in Inland Northwest Strategy 2: Your residents and workers come from throughout the region
  26. 26. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Strategy 2: Think, plan and act regionally Between 2002 and 2012: • 32,096 more residents traveled over 50 miles to work • 32,198 more people left the area to find work • 30,185 more people living outside the area found work in the area
  27. 27. • Companies are looking for your ability to bring a wide variety of resources to the table: – Infrastructure and Public Serivces – Incentives and Finance – Education and Workforce – Permitting • Political jurisdictions are almost irrelevant Strategy 3: Think collaboration, not competition Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  28. 28. Strategy #2: Collaboration is the New Competition • Form creative new partnerships that will promote economic development • Include new partners like education and training, health care, major employers, lenders, utilities. • Establish a leadership group that meets frequently, measures results and celebrates success. • Understand which partner is best suited for which service • Network with regional, state and national partners Strategy 3: Think collaboration, not competition Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  29. 29. Strategy #3: Double Down on Retention & Expansion • Meeting the needs of existing businesses should be priority number 1! • Most job growth comes from expansion of existing businesses in the community • Many businesses leave a home-town location because of a lack of expansion space or financing • New businesses look for customers, suppliers, strategic partners, and a quality workforce. Strategy 4: Double down on retention and expansion Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  30. 30. Strategy #3: Double Down on Retention & Expansion Strategy 5: The best attraction strategy is a good retention & expansion strategy Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Site Selectors Survey, Area Development Magazine • 89% of companies looking for new site locations consider whether there are businesses performing similar activities in the area of search. • 60% of corporate execs get their most important information from industry peers • 75% of site selectors don’t contact a community until after a “short list” is established
  31. 31. • Total Projects: – 93 (47 Expansion, 46 New) –Projects connected with existing businesses: 78 –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 Sq. Ft. Strategy 5: The best attraction strategy is a good retention & expansion strategy Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Don’t get hung up on the big score. Big deals in site selection are few and far between.
  32. 32. • Companies are looking for a good quality of life for their executives and employees – Arts and Culture – Education – Diversity of Housing Opportunities – Varied Transportation Options – Recreational Opportunities – Support For A Safety Net Strategy #5: Place MattersStrategy 6: Place Matters: Enhance what Makes your Community Livable Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  33. 33. Strategy 7: Emphasize the Small Business Strategy that Fits your Community • Main Street Revitalization • Tourism and Recreation • Meat & Potatoes Small Businesses Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  34. 34. Strategy 7: Emphasize the Small Business Strategy that Fits your Community • Access to Capital • Small Business Assistance • Economic Gardening • Incubation vs. Acceleration • Small Business Development Center Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  35. 35. Strategy 8: Develop a Workforce Strategy that improves skills needed by business Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 There is a significant mismatch between business needs and workforce skills.
  36. 36. Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015 Trend: The Impact of Advanced Manufacturing Technology Strategy 8: Develop a Workforce Strategy that recognizes the change in technology
  37. 37. Trend: The internet is changing the way that everyone does business Strategy 8: Develop a Workforce Strategy that recognizes the change in technology Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  38. 38. Strategy 9: Fine Tune your Marketing, Web Presence and Social Networking • Have a user-friendly website • Link your site with your regional economic development partner • Easily accessible public services • 75% of the research by a site selection company is done BEFORE you are contacted • Keep your inventory of sites up to date Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  39. 39. Strategy #2: Collaboration is the New Competition What Matters Most to Businesses & Site Selectors: 1. Basic Community Services 2. Infrastructure (Sewer, water, utility, connectivity) 3. Ease of Permitting and Regulatory Process 4. Existing Workforce Skills 5. Land/Building Prices & Supply 6. State and Local Tax Structure 7. Flexibility & Availability of Incentives 8. Access to Higher Education 9. Legal Climate Strategy 10: Make your ED Tookit about more than just incentives Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  40. 40. Strategy 10: Understand the Return on Investment (ROI) for Incentives • Successful economic development should help make fiscally stable local government • Understand both the short and long term costs/benefits of your investments – Short term: Cost of building a new road – Long term: Cost of maintaining that road • Neglecting basic government services can hurt a community’s economic future • It’s all about fiscal impact! Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015
  41. 41. Final Words…. Economic Development is like baseball. It’s hard work. To quote Tom Hanks in “A League of their Own” “It's supposed to be hard. If it wasn't hard, everyone would do it. The hard... is what makes it great.” Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015

×