Slideshare Economic Development Overview 2012

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Slideshare Economic Development Overview 2012

  1. 1. Economic Development 101 Improving the quality of life of the Greater Owensboro region
  2. 2. The EDC fulfills its missionthroughthe following activities:Create an environment for economic investment, business formation, company location, and talentPrimary point of contact for existing companies, new business prospects, and startup companiesStrategic positioning for long-term global competitiveness through infrastructure, a competitive workforce, and quality of place
  3. 3. GO-EDC2011-2012 City of Owensboro $203,664Total GO-EDC Budget (EDC, Skills, Inc., DOI) $683,764 Daviess County Fiscal $178,100Five employees Court (EDC, Skills, Inc., DOI)Coordinated multi-dimensional strategy Investment 2020 $197,200(industrial, startup, (Private Investment)downtown, workforcedevelopment- Commonwealth of Kentucky $75,000OwensboroWorks.com) (KSTC- IN program)Fully funded innovationcenter programRegional partnerships withHancock, Ohio andnorthwest Kentucky countiesand Indiana
  4. 4. Milestones 2006-2012• 2006 • 2008 • Commerce Center • Placemaking Strategy- • Life Science Strategy Downtown Master Plan • Comprehensive ED • 2009 Strategy • Kentucky United • Revival of Regional Alliance • Emerge Partnership- LO for Education • Hancock County MOU• 2007 • 2010 • OwensboroWorks.com • Centre for Business and replaces Skills, Inc. Research opens • DOI folds into EDC as • 2011 Downtown Dev. Corp. • Community Campus • Innovation Network- SBDC • 2012 • WKU-O MOU • eMerging Ventures- ICC
  5. 5. Results GO-EDC 2005-2006 GO-EDC 2011-2012 • 14 state projects• 8 state projects • $60 million investment• $12 million investment • ICC program spawned over 20 new firms with• No Innovation Network over $50 million in new• Minimal activity in investments and 70 new jobs with average wage of downtown Owensboro over $75,000 • Downtown private investment reached $75 million in 2012, nearly matching original $79 million public investment
  6. 6. Economic Development:Approaches
  7. 7. Community Strategy…• Jobs Strategy • Product Development • Existing Business • Infrastructure Retention • Placemaking- Quality of • New Business Targets Life • Growing New • Workforce Development/ Companies- startups Education
  8. 8. Job Growth: 1990-2010 Source: Bureau of Economic Analysis; Owensboro peer region benchmarking done initially in 1998 by Paul Coomes, University of Louisville. Peers are regions within 30,00 of Owensboro MSA population in 1998, not located on an interstate, no public university, not a state capital region, not within 60 miles of major city of 1 million or more.
  9. 9. Best Cities for Jobs 20122012 RankAmongSmall Cities 1 Odessa, TX 70 Clarksville, TN-KY 2 Midland, TX 93 Bowling Green, KY 3 Columbus, IN 111 Elizabethtown, KY 4 Lafayette, LA 5 San Angelo, TX 6 Blacksburg-Christiansburg-Radford, VA 7 Casper, WY 8 Williamsport, PA 9 Glens Falls, NY 10 Lubbock, TX 11 Laredo, TX 12 Columbia, MO 13 Cumberland, MD-WV 14 Gainesville, GA 15 Portsmouth, NH-ME NECTA 16 Holland-Grand Haven, MI 17 Bismarck, ND 18 Houma-Bayou Cane-Thibodaux, LA 19 State College, PA 20 Fargo, ND-MN 21 Ocean City, NJ 22 Owensboro, KY 23 Charlottesville, VA 24 Tyler, TX 25 Cheyenne, WY Source: NewGeography.com
  10. 10. Manufacturing Jobs: 1990-2010Source: Bureau of Economic Analysis; Owensboro peer region benchmarking done initially in 1998 by PaulCoomes, University of Louisville. Peers are regions within 30,00 of Owensboro MSA population in 1998,not located on an interstate, no public university, not a state capital region, not within 60 miles of major cityof 1 million or more
  11. 11. Funding and PerformanceSource: Funding data from GO-EDC survey of peer region economic development organizations; jobs date from Bureau ofLabor Statistics and Bureau of Economic Analysis
  12. 12. Regional Demographics Labor Availability Labor Market 481,263 Owensboro Kentucky US Population Region Labor Force 255,128 Per Capita $33,160 $33,667 $39,937 (20 mile radius) Personal Owensboro MSA 112,266 Income Population 2000-2010 PCPI 3.1% 2.9% 2.8% Owensboro MSA 53,799 Growth Rate Labor Force Real GDP Per $32,774 $33,273 $42,346 Age Distribution (20- 32% Capita 44) Source: US Bureau of Economic Analysis Average Hourly $16.60 Manufacturing WagePer Capita Income GrowthIn 2010 Owensboro had a per capita personal income of $33,160. This PCPI was83 percent of the national average, $39,937. In 2000 the PCPI of Owensboro was$24,540. The 2000-2010 average annual growth rate was 3.1%. The averageannual growth rate for the nation was 2.8%.Source: U.S. Bureau of Economic Analysis
  13. 13. Industries that drive the regionaleconomy Industry LQ Gas Pipeline Transportation 31 Aluminum/ Metal Production 14 Food Manufacturing 2 Finance/ Mortgage Processing 1.7 Transportation Equipment Production 1.5 Health Care 1.3 Transportation and Warehousing 1.2 LQ or Location Quotient is a ratio to measure the concentration of local employment compared to national employment in an industry cluster to determine the if industries are basic or non-basic industries. An LQ of 1 or higher indicates a greater concentration of jobs in any given region compared to the nation and therefore a basic industry. According to economic base analysis theory, jobs in basic industries drive the flow of outside wealth into a region and provide greater economic development than jobs in non-basic industries.
  14. 14. Top Workforce Clusters Occupation Employment Mean Mean LQ Future Hourly Annual Growth Milling and Planing Machine 90 $14.15 $29,430 9.48 -21.10% Setters, Metal and Plastic Tool Grinders, Filers, and 50 $20.77 $43,210 8.42 -15.70% Sharpeners Rolling Machine Setters, 340 $19.82 $41,220 8.42 -11.80% Operators, Metal and Plastic Heat Treating Equipment 60 $15.76 $32,780 7.01 -14.80% Setters, Operators, Metal and Plastic Industrial Machine 550 $22.76 $47,340 5.42 9% Mechanics Regional Occupational Concentrations Ranked in Top 5 in the Nation!Source: US Bureau of Labor Statistics
  15. 15. Production Occupations LQ Future GrowthMetal, Plastic Industry Machine Setters 5.48 -12.20%Metal and Plastic Workers 5.06 -25.10%Welders, Cutters, Brazers 3.87 5.10%Helpers, Production Workers 2.88 -0.5%Packaging Machine Operators 2.5 -5.4%Inspectors, Samplers, Weighers 2.25 -7%First-line Supervisors, Managers 2.23 -4.48%Industrial Production Managers 2.33 -5.8%Bakers 2.35 10.5%Electricians 1.44 7.4%Source: US Bureau of Labor Statistics
  16. 16. Health Care Occupations LQ Future GrowthSurgical Technologists 3.70 24.4%Physical Therapy Assistants 2.24 16.7%Radiology Technicians 1.99 15%Pharmacy Technicians 1.71 28.9%Nursing Aides, Orderlies 1.69 18.2%Registered Nurses 1.65 23.5%Other Nurses 1.21 14%Lab Technologists 1.16 15%Physicians Assistants 1.15 27%Medical Records and Health IT 1.15 17.8%Source: US Bureau of Labor Statistics
  17. 17. Professional ServiceOccupations LQ Future GrowthLoan Officers 1.8 11.4%Purchasing Agents 1.25 -8.6%Cost Estimators 1.01 18.5%Human Resource Managers 1.81 12.5%Stock Clerks 1.09 -7.6%Shipping, Receiving Clerks 1.09 3.6%Source: US Bureau of Labor Statistics
  18. 18. Economic Development 101
  19. 19. Business Attraction:Strengths• River• Location• Low Cost Energy• Low Tax Burden• Diversity of Economic Base• Manufacturing Retention• Enhanced Transportation• Colleges and Universities
  20. 20. Business Attraction:ChallengesEPA Non Attainment Air Quality RegionRight to Work StateInterstate Access (I- 65 and I-75)Commercial Air ServiceWorkforce Skill Gap (production workers to technicians)
  21. 21. New Business TargetsCluster Analysis using Location Quotients • Advanced Manufacturing • Food, Automotive, Metals • Distribution/ Logistics • Back Office/ Call Centers
  22. 22. Kentucky United• Joint state-regional marketing effort• Kentucky Cabinet for Economic Development• Local EDO’s (GO-EDC)• Prospecting trips (New York, Detroit, California, Northeast)• Site selector luncheons (Atlanta, Chicago, Indianapolis, New York)
  23. 23. Community Marketing
  24. 24. Infrastructure• Certified Mega Site on River in Hancock County• Riverport- Panama Canal Changes• Cheaper-Faster Broadband• Certified Work Ready Community• Commercial Air Service
  25. 25. Higher Education Partnerships• Research Programs • U of L/ Nucleus • WKU-O/CBR• Degree Programs • WKU-O Campus • OwensboroU• High School • Discover College • Community Campus• Workforce Development • Workforce Solutions• P-16 Alliance for Education
  26. 26. Growing Companies• Innovation/ Commercialization/ High Tech • High Tech Business Attraction • Plant Therapeutics • Foods • Bio-Medical • Centre for Business and Research • Seed Capital
  27. 27. CBR Tenants• Hollison Technologies• Adult Immunization Management• WKU- Plant Biotech Center• WKU- Food Science Research Program• GuitarGoods.com• Brite Lite Logos• Dalisha’s Desserts• Craig O’Bryan Graphics• Infinity Digital Media• Higher Ground Consulting• KBP Analytics• Kentucky BioAlliance
  28. 28. Existing Business Retention Threats• Aluminum• Legacy Manufacturing• Energy Intensive Industries
  29. 29. New Investments, expansions, &retention: 4,864 jobs since 2008
  30. 30. ED 101: Economic GardeningStrategy Pros Cons OwensoboroEconomic Most cost Incremental gains, eMergingGardening effective strategy not headline- Ventures Center based, therefore, (state funded)Focusing on Focus on retaining politically difficultbusiness startups, and growing to sell because it GO-EDC Industryentrepreneurs, existing is slow growth and Advantage-and nurturing companies and long-term existing industrygrowth of stage II gazelle programcompanies using companies (3/4ths Requires adata analysis, of jobs) different skill set Centre forseed capital, and Business andbusiness Long-term stability Researchincubators
  31. 31. ED 101: Workforce
  32. 32. Incentive Process Kentucky Business Investment Program (KBI)- locally requires the local jurisdiction to abate 1% of occupational taxes for the 10- year term of the incentive on projects creating 10 or more jobs. State abates 3% of Kentucky payroll taxes on the project. Other Types of Incentives or Shared Investments •Industrial Revenue Bonds (IRB) •Build-to-Suit/Leaseback •Tax Increment Financing (TIF) •Seed capital funding- Emerging Ventures Seed Fund
  33. 33. ED 101: PlacemakingStrategy Pros Cons OwensoboroPlacemaking Mobile people in Indirect approach Downtown global economy based on PlacemakingFocus on correlations initiativedeveloping a Qualitative ratherregion that is than quantitative Not a standalone Carnegie Villageattractive to highly program, developmenteducated people. Encourages compliments 1st around Centre for regions to make and 2nd Business andInvestment quality of place approaches Researchalways follows investmentstalent Support for the Supported by data arts
  34. 34. PlacemakingPlace, environment,amenities, andlivability are the keyfactor for people intoday’s world whenchoosing a place to live.Talent, investment, andbusinesses are allattracted to qualityplaces.Placemaking is the toolused by communitiesand regions to capitalizeon local assets to createpublic spaces thatpromote health,happiness, andpropserity
  35. 35. Owensboro’s Place Strategy Downtown Around Town• Veterans Blvd • OMHS Parrish Campus• Marina- West Executive • OMHS- New Campus Inn Site to English Park • Moreland Park- Rec-Plex• Bluegrass Center • By-Pass Extension• Carnegie Village Corridor- US 60 East• East Bridge District
  36. 36. EDC Operating Budget 2009-2010 BudgetIncomeCity of Owensboro $181,043Daviess County Fiscal Court $155,000Commonwealth of Kentucky- Innovation Center $66,000Investment 2020- Private Companies $187,000Total $589,043ExpensesSalary and Staff Expenses $391,823Marketing and Recruitment $52,428Existing Industry Support $19,000Operational Expenses (Rent, Office, Insurance) $124,792Total $589,043

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