The document discusses trends impacting economic development and strategies for communities to stay competitive. It notes that communities must adapt to major economic transitions, changing business needs, and shifts in economic development practices. Further, communities face replacing retiring workers with fewer new workers, budget cuts, and other challenges. The presentation then outlines 10 strategies for communities, including emphasizing collaboration, entrepreneurship, retention and expansion efforts, and fine-tuning marketing and financing tools. It stresses the importance of understanding the community and establishing goals and priorities to guide economic development efforts.

1. Starting (or retooling) Your
Economic Development Program
Staying competitive in community
development while the world is changing
around us!
December 7, 2012 Presentation by Mark Barbash 1

2. Starting (or retooling) Your Economic
Development Program
• Trends that are changing the way
we do economic development
• Economic Development Strategies to
stay competitive
• Where to start
December 7, 2012 Presentation by Mark Barbash 2

3. Let’s start Let’s a few economic realities
with Start with a few
economic realities:
that are impacting economic development
• We are going through a major economic
transition.
• The nature of business is changing.
• The practice of Economic Development is
changing as well.
December 7, 2012 Presentation by Mark Barbash 3

4. We are not replacing our retiring workers
with 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.
December 7, 2012 Presentation by Mark Barbash 4

5. Regional Interdependency: 244,881 Franklin
Regional Interdependency: Franklin County
County workers live outside the County
Regional Interdependency: 116,144 Franklin
County residents work outside the County
December 7, 2012 Presentation by Mark Barbash 5

6. State & Local budgets are lagging the
recovery
December 7, 2012 Presentation by Mark Barbash 6

7. Public sector employment has declined
through the recession after years of growth
December 7, 2012 Presentation by Mark Barbash 7

8. Major programs at the federal and state
levels have experienced major cuts.
Annual appropriations for federal
12
CDBG and HOME Funding:
10
1975 - 2012
8
6
4
2
0
December 7, 2012 Presentation by Mark Barbash 8

9. Manufacturing is becoming more
sophisticated…and jobs more skilled
December 7, 2012 Presentation by Mark Barbash 9

10. Entrepreneurship: More small
businesses…working for big business
In 2010, there were about 28 million small businesses in
this country, responsible for 49.2 percent of private
sector employment.
But there were also 18,500 firms with 500 employees or
more, defined as big business, and they employed the
other 50 percent or so.
December 7, 2012 Presentation by Mark Barbash 10

11. The 1099 Economy is becoming a more
important part of your community
About half – 52 percent – of all small businesses are
home based and 78.5 percent are non-employers in the
sense that they employ only the sole proprietor.
Of the remaining 21.5 percent that do employ
anyone, only 10.7 percent of that group will employ
more than 20 people.
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-
employed worker in Ohio is $25,331.
December 7, 2012 Presentation by Mark Barbash 11

12. The Internet is changing the way
EVERYONE works!
December 7, 2012 Presentation by Mark Barbash 12

13. Ten Strategies for Communities
to Stay Competitive
December 7, 2012 Presentation by Mark Barbash 13

14. First, what’s NOT changing?
• The need to develop a plan 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
December 7, 2012 Presentation by Mark Barbash 14

15. 1. Think “Strategic Doing” vs. “Strategic
Planning”
• 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
December 7, 2012 Presentation by Mark Barbash 15

16. 2. Understand the ROI of your Economic
Development 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
December 7, 2012 Presentation by Mark Barbash 16

17. 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, p
ermitting
• Understand who does what best?
December 7, 2012 Presentation by Mark Barbash 17

18. 4. Enhance what makes your community
livable and Know your product
• Identify and leverage your strongest assets
• What makes your community special?
• Asset mapping on a local AND regional basis
• Richard Florida: The Creative Class ?
• Tactical urbanism
• What is your available product? Large
sites, smaller sites, redevelopment sites, Main
Street
December 7, 2012 Presentation by Mark Barbash 18

19. 5. Death of the Big Deal….
• 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
December 7, 2012 Presentation by Mark Barbash 19

20. 6. Double Down on Retention and
Expansion
• Sometimes the best R & E does not involve
incentives but simply helps solve problems
• Understand your business community and
what helps it grow
• Cluster Strategy & Supply Chain
• Organized R & E program to track activity and
performance
• Don’t promise what you can’t deliver
December 7, 2012 Presentation by Mark Barbash 20

21. 7. Retention & Expansion is the Best
Attraction Strategy
• Companies locate where there are other like-
minded businesses
• Few companies locate only because of
incentives
• Follow the trail to customers, suppliers, key
partners
December 7, 2012 Presentation by Mark Barbash 21

22. 8. Emphasize the Entrepreneurial Strategy
that fits your community
• Main Street revitalization
• Small Business assistance
• Economic Gardening
• 1099 Economy
• Incubation vs. Acceleration
December 7, 2012 Presentation by Mark Barbash 22

23. 9. Fine tune your financing and incentive
toolkit
• 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
December 7, 2012 Presentation by Mark Barbash 23

24. 10. 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
• 90% of the research by a site selection
company is done BEFORE you are contacted
• Keep your inventory of sites up to date
December 7, 2012 Presentation by Mark Barbash 24

25. So, where do we
start?
December 7, 2012 Presentation by Mark Barbash 25

26. Key Next Steps:
Key Questions
• How well do you know your community ?
• Have you established
priorities, goals, tasks, with assigned leads ?
– Where are you, where do you want to be, how do
you get there ?
• Do you have a toolbox that is appropriate to
your community and priorities ?
• Do you have a way of measuring
performance?
December 7, 2012 Presentation by Mark Barbash 26

27. Key Questions and Next Steps
Key Questions
• How active and wide is your community’s
regional network?
• Network of Partners: Do you try to be a lone
gun? Do you build partnerships?
• Do you understand the daily needs of
existing businesses, not just the needs for
new investment?
• Is your web site accurate, current and
useful?
December 7, 2012 Presentation by Mark Barbash 27

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