The document provides an overview of economic analysis tools and support available from Economic Development Services to support local economic development planning. It discusses tools such as First Impressions Community Exchange, Business Retention and Expansion, Downtown Revitalization Services, and Community Economic Analysis. The tools are designed to help communities develop strategies through consultation, research, and analysis of the local economy. Communities can access the tools and support through Regional Offices.

1. Economic Analysis Tools for
Economic Development Planning
EDCO Regional Seminar - Ingersoll
November 25, 2010

2. Presentation Overview
• Who are we?
• What do we do?
• What tools and support do we provide and how do they
support local economic development planning?
– Including new developments in existing tools
• How do EDO’s access the tools/support/resources?

3. Economic Development Services
“program development and community support”
Community Economic Development
Unit (CEDU)
Regional Economic Development Unit
(REDU)
• Program development & support
–BR+E, FICE, CEA, DR, CIRRO
• Training
–Program based
–Communities of Practice
• Best practices research
–Emerging program needs
• Policy support
–Local food, human capital
• Stakeholder facilitation
–EDCO, EDAC, Provincial & Federal
• Program implementation
• Strategic planning
• Advisory services
–Business development
–Marketing strategies
–Funding programs
• Network building in support of regional
economic development

4. Rural Community Development
Branch – Client Coverage
Regional Office Location
Community Economic Development Unit

5. Community Economic Development
“helping communities chart their own course”
• Develops practical, locally-driven strategies to build
economic opportunities
• Enables local organizations and work with local leaders to
build capacity and inform their decision-making.
• Builds multi-functional, comprehensive strategies in contrast
to individual economic development projects.
• Integrates economic and community goals to bring about
more far-reaching community revitalization.
• Guided by strategic planning support, service, and analysis
– CED is a rigorous process

6. Build the skills, expertise and teams to create economic
opportunities through:
– Education
– Outreach
– Programs
– Services
– Network development
Capacity Development

7. • First Impressions Community Exchange (FICE)
• Business Retention & Expansion (BR+E)
• Downtown Revitalization Services (DR)
• Community Economic Analysis (CEA)
Tools for Economic Development Planning

8. First Impressions Community Exchange (FICE)
“building capacity from the ground up”
• Identifies opportunities and challenges
for a community to begin developing
an economic development strategy
• Reveals how a community is
perceived by visitors, potential
investors or potential new residents
• Identifies a communities strengths
and weaknesses in critical areas such
as:
– Key government and retail services
– Education
– Signage
– Access / Amenities
– Recreation
Benefits/Outcomes
• Creates a shared sense of priorities
among local leaders
• Community engagement - champions
and teams are identified
• Sets priorities for local action:
– Tourism development
– Community revitalization efforts
– Approaches to attract and
retain businesses
*Refreshed materials launched earlier
this year

10. Community Commitment
• To participate in First Impressions, you will need to:
– Sign a Terms of Engagement with the exchange community and
with OMAFRA;
– Select and identify a Coordinator;
– Recruit and train volunteers for a Visiting Team;
– Complete the visit and assessment using the booklet provided;
– Prepare and present to the exchange community using First
Impressions Presentation Template;
– Host a “report back” from the exchange community
– Develop an action plan based on the report and feedback;
– Submit a final report to OMAFRA using a supplied Report Form.

11. Program Resources
• Resources and Training
– Rural Business Consultants
– Economic Development
Consultants
– Program Lead
– Program & Service Delivery
• Program Marketing Brochure
• Web pages: www.reddi.gov.on.ca
• Coordinator’s Guide
• Full Picture Guidebook
• Tourism Guidebook
• Downtown Guidebook
• Report Forms
• Presentation Templates

12. Reach of the First Impressions
Community Exchange (FICE)
FICE Projects(135)
FICE 2005-2009
• Municipalities Supported: 108
• Businesses within these
Municipalities: 97,000
• Population of these
Municipalities: 2,245,000

13. Business Retention & Expansion (BR&E)
“breaking down the barriers to local business”
• A systematic business
consultation program
• Focus on understanding needs
of local businesses
– 80% of job growth and
investment comes from
businesses already in a
community
• Remediation of barriers to
business through local action
• Benefits/Outcomes
– Job creation/retention,
increased tax base,
increased investment, more
positive business climate
– Local problems get solved
– Early warning of
expansions and closures
– Closures are prevented
– Improved business –
community relationship

14. BR+E Program Organization
Leadership Team (Usually 5 to 8 people)
Leads and manages the overall project
Task Force (15 to 25 people)
Assists in developing and implementing the project
Interview Teams (25 to 50 people)
Assists in the business visitation step of the program
Business Resource Network (numbers vary)
Critical resource for the project

15. BR+E Process
Stage 1:
Project Planning and Business Survey
Step 1: Introducing BR+E to the community
Step 2: Leadership Team and Task Force
recruitment (variable)
Step 3: Project design
Step 4: Interviewer recruitment and training (1-2 months)
Step 5: Business Visits
Step 6: Review surveys for Red Flag issue (6 months)
Stage 1:
Planning &
Firm Visits
Immediate
Follow-Up
Data Analysis
Implementation

16. BR+E Process
Stage 2:
Immediate Follow-Up
Step 7: Red Flag response (immediate)
Planning & Firm
Visits
Stage 2:
Immediate
Follow-Up
Data Analysis
Implementation

17. BR+E Process
Stage 3:
Data Analysis and Recommendations
Step 8: Data entry (web application)
Step 9: Data Analysis
Step 10: Task Force Retreat (3 months)
– Identify key findings
– Identify potential actions
Planning & Firm
Visits
Immediate
Follow-Up
Stage 3:
Data Analysis
Implementation

18. BR+E Process
Stage 4:
Public Meeting and Implementation
Step 11: Initial public meeting
Step 12: Formation of groups for implementation
Step 13: Implementation/Action Plan
Step 14: Monitor progress
Step 15: Follow-up public meetings (1 month +)
Implementation of projects can take
1 to 2 years +
Planning & Firm
Visits
Immediate
Follow-Up
Data Analysis
Stage 4:
Implementation

19. BR&E Program Resources
• Coordinator Training and
Certification (2.5 days)
• Main, sectoral and specialized
surveys
• Executive Pulse web application
– Technical support
• Training manual
• Resource manual
• Evaluation manual
• Team Management manual
• Multimedia resources
• Regional support

20. BR+E Program Improvements
*NEW* Agri-Business & Food Processing Business Survey
• Building on traditional Agri-Food Survey to capture changing needs in the new
local food economy
• Pilot survey currently under development with Durham Region
• Manufacturing Survey modified for growing food processing sector
• Community questions used to develop new survey templates
• Launch: December 2010

21. BR+E Program Improvements
*NEW* Workforce Development & Human Capital Survey
• By 2011, all net growth in Ontario’s labour force will come from new immigrant
employees
• Base Survey modified to address:
– challenges and opportunities for businesses in the attraction and retention of
immigrant employees;
– NOC classifications to link business needs with skill-specific employees
• Partnership with Community Immigrant Retention in Rural Ontario (CIRRO)
program
• Pilot currently under development with Brockville, Leeds & Grenville
• Community questions used to develop new survey templates
• Launch date: November 2010

22. Reach of the Business Retention
+ Expansion (BR+E)
BR+E Projects (63)
BR+E 2005-2009
• Municipalities Supported: 186
• Businesses within these
Municipalities: 163,000
• Population of these
Municipalities: 3,536,000

23. Downtown Revitalization Services
“building on a community’s assets”
• Technical assistance and
insight to support rural
community efforts to strengthen
downtown cores
– Business & Building
Inventory
– Business Owner Survey
– Resident Survey
– Business Mix Analysis
– Trade Area Analysis
• Insight and expertise for a
market-driven downtown
revitalization approach
Benefits/Outcomes
• Job creation/retention
• Business openings/recruitment
of new business
• Decreased commercial vacancy
rate
• Sharpens the competitiveness
of existing business owners

24. Physical Improvements
Management + Leadership
Marketing + Promotions
Economic Development
Integrated Approach (Four-Points)

25. 25
Timeframe for the Four-Stage Process
PREPARING
STAGE I: ORGANIZING & SCOPING
(2-4 months)
STAGE II: COLLECTING & ASSESSING
(4-6 months)
STAGE III: ACTION PLANNING & PRIORITIZING
(3-4 months)
STAGE IV: IMPLEMENTING & Monitoring
(2 years)
Market Analysis
Physical
Design
Other
Research
Physical
Improvements
Marketing &
Promotions
Economic
Development
Leadership &
Management
Other

26. Program Resources
• Resources and Training
– Formal OMAFRA Downtown Revitalization Training
– Rural Business Consultants & Economic Development Consultants
– Program Lead
– Communities of Practice
• Web page: http://www.omafra.gov.on.ca/english/rural/inddr.htm
• Coordinator’s Manual and Resources CD-ROM including:
– Case Studies
– Templates
– Community examples

27. Reach of the Downtown
Revitalization Services and
Resources
DR / DMA Projects (38)
• Municipalities Supported: 32
• Businesses within these
Municipalities: 29,000
• Population of these
Municipalities: 629,000
DR/DMA 2005-2009

28. Community Economic Analysis Tools
“technical support to help you understand your local economy”
• Analytical Information and data
on the labour force and
business sectors
• Technical guidance for
incorporating economic analysis
into strategy development and
implementation.
Benefits/Outcomes
• Effective economic development
requires an understanding of the
dynamics of the local/regional economy-
its current and recent performance, the
evolution of its industry structure, the
underlying reasons for these trends, and
the challenges ahead.
• Leads to the formulation and
implementation of strategies that build
on local opportunities and address local
needs
• ED strategies are developed that
influence job creation/retention,
improved tax base and improved quality
of life

29. Community Economic Analysis Tools
• Community Business Profiler
• Labour Flow Analysis
• Competitive Advantage Analysis
– Location Quotient Analysis
– Industry Leading-Lagging Analysis
– Carvalho Classification

30. Community Business Profiler
Presents the number of businesses representing each sector by employment size
category for a selected municipality

31. Labour Flow Analysis
Labour Flow Analysis provides a picture of the movement of labour into and out of
a municipality
• Two Labour Flow Analysis Resources:
1. North American Industrial Classification System Version (NAICS)
Compares the number of jobs in each industry held by local residents with
the number of jobs in the same industry held by people working in the
community
2. North American Occupational Classification System Version (NOCS)
Compares the number of jobs in each occupation held by local residents
with the number of jobs in the same occupation held by people working in
the community
• Includes a measurement of the relative concentration of employment in each
occupation or industry, based on the resident employed labour force and the
workforce employed by local establishments.

32. Occupation-based Labour Flow Analysis

33. Occupation-based Labour Flow Analysis
OMAFRA’s occupation-based Labour Flow Analysis provides local statistics for 520
occupation categories.

34. Labour Flow Analysis
• The industrial and occupational mix of the labour force will provide
insight into the skill base of the local work force:
– Use the information to make evidence based assumptions of
labour market needs and issues
– Use the information to garner support for carrying out projects and
making the public aware of the importance of workforce
development strategies
– Can be used to match a community’s capabilities and objectives
with industries that require those capabilities to help establish what
industries are the best prospects
– Use the information to help profile a community to prospects and
fulfill information requests about the community
– Use the information to empirically measure the “creative economy”
in your community or region.

35. Competitive Advantage Analysis
1. Location Quotient Analysis
– Analysis of industry concentration, relative to Ontario
2. Industry Leading-Lagging Analysis
– Analysis of industry growth/decline, relative to Ontario
3. Carvalho Classification
– Ranking economic performance
• Provides a broad picture of the local economy, and reveals how business
sectors are performing (i.e. growing/declining) in the community
• Provides an indication of business sectors that drive the local economy
• Provides and indication of business sectors that the community offers a
competitive advantage.

37. • Measures the relative concentration of each industry in your local economy
compared to a reference area (in our case, Ontario).
% of local employment in industry i
% of provincial employment in industry i
• If LQ>1, industry i, is more concentrated in the region
• Sector is more concentrated than the reference area – serves a larger
market - brings new money to the local economy – community has a
“competitive advantage” for this industry
Location Quotient Analysis
LQ =

39. Industry Leading-Lagging Analysis
Describes the relative growth dynamics of provincial and local business
sectors
Provincial Sector Relative
Growth:
• “Leading” – if the sector’s
growth provincially exceeded
the overall provincial growth
rate for all sectors
• “Lagging” – if the sector’s
growth provincially was lower
than the overall provincial
growth rate for all sectors
Local Sector Relative
Growth:
• “Leading” – if the sector’s
growth locally was greater
than sector’s growth
provincially
• “Lagging” – if the sector’s
growth locally was lower
than provincial sector’s
growth provincially

41. Carvalho Model for
Ranking Economic Performance
• Developed by Dr. Emanuel
Carvalho – University of Waterloo
• Considers three separate measures
to rank sectors:
1. Degree of Concentration
– Location Quotient
2. Overall Strength of Industry
– Provincial Sector Relative
Growth
3. Local Growth
– Local Sector Relative Growth
Location
Quotient
Provincial
Sector
Relative
Growth
Local Sector
Relative
Growth
High
driving > 1.25 Leading Leading
accelerating 0.75 – 1.25 Leading Leading
rising < 0.75 Leading Leading
Medium
evolving > 1.25 Lagging Positive
transitional 0.75 – 1.25 Lagging Positive
moderate < 0.75 Lagging Positive
promising > 1.25 Leading Lagging
yielding 0.75 – 1.25 Leading Lagging
modest < 0.75 Leading Lagging
Low
challenging > 1.25 Lagging Lagging
vulnerable 0.75 – 1.25 Lagging Lagging
marginal < 0.75 Lagging Lagging

43. Competitive Advantage Analysis
Competitive Advantage Analysis can point to industries that enjoy local
comparative advantages. It cannot, however identify what the actual
comparative advantages are.
It is important to identify what factors have contributed to the local
comparative advantage:
– Local raw materials or local inputs
– Transportation methods
– Local wage rates
– Influence of local industries
– University influences/College influences
– Local consumption and savings
– Other comparative advantages

44. Competitive Advantage Analysis
• The results from the Competitive Advantage Analysis should be
supplemented with information acquired through a consultation
process to identify:
– Industries that possess competitive advantages in the community;
and
– Community competitive advantages
• The integration of information gathered through a community
consultation process and quantitative analysis provides the foundation
for a economic development strategy for the community.

45. Limitations of Competitive Advantage Analysis
• Time period for data: 2001- 2006
• Based on Census responses
• Results based on employment -
some sectors becoming more
capital / technology intensive
may show decline in
employment despite higher
productivity

46. • Municipalities Supported: 249
• Businesses within these
Municipalities: 239,000
• Population of these
Municipalities: 5,400,000
Reach of the Community
Economic Analysis (CEA)
Tools
CEA Tools 2005-2009
CEA Tools – Community Project (30)
CEA Tools – Regional Project (76)
CEA Tools – Combined Projects

47. CEA Tools
DR / DMA Projects
FICE Projects
CIRRO Case Studies
BR+E Projects
• Municipalities Supported: 313
• Businesses within these
Municipalities: 287,000
• Population of these
Municipalities: 6,782,000
CED Programs and Tools 2005-2009
Combined Reach of the
Community Economic Development
Programs & Tools
2009-2010 Client Success
Client Successes 2009-2010
• Clients Successes: 103
• Jobs created/retained 2,900

48. Presentation Overview
 Who are we?
 What do we do?
 What tools and support do we provide and how do they
support local economic development planning?
 Including new developments in existing tools
• How do you access the tools/support/resources?