1. Title Subject Heading
What is CEDs?
1
Sustainable Economic Development
through Local & Regional Synergism
Expanding the Comprehensive Economic Development Strategy Framework
Capstone Research Project
Jordan Yves Exantus
University of Memphis
Spring Semester
2014
Case Study: Greater Memphis,TN-AR-MS
2. 2
Research Statement
My research will explore the goals defined by the Economic
Development Administration (EDA) and guidance from the National
Association of Development Organizations (NADO) as they relate to the
development and implementation of the Comprehensive Economic
Development Strategy (CEDS). Using the existing CEDS as a starting
point, it will be determined in what ways the Memphis Area (MAAG
Region) CEDS could improve in order to be more comprehensive,
impactful, prescriptive, and reflective.
This project will explore best practices for Regional Economic
Development Planning and consider new strategies for the identified
regional priorities. I will explore a few rationales as to why planning
in a regional manner is essential to local success and identify a
few recommended models for regional planning which will guide
implementation efforts going forward.
Essentially, CEDS is an Economic Development tool which is meant to
be an‘economic roadmap’for the region. Within the CEDS, goals are
established, investment priorities and funding sources identified, and a
planning process is outlined which promotes“broad-based and diverse
public and private sector participation”. Key outcomes of this planning
process are job creation and other measurable impacts. Additionally,
the CEDS serves as a benchmarking tool which allows the region to
measure it’s opportunities versus other regions.
About the Author
Jordan Exantus is a passionate individual who has been actively expanding his
planning skills and knowledge through worldwide experiences for over 10 years.
Starting in 2003, Jordan studied urban planning at Cornell University where
he excelled for 4 years. At Cornell, Jordan was recipient of two scholar awards
given to less than 2% of the student population recognizing his commitment to
academic excellence, work, community service, and leadership. Additionally,
Jordan took his studies to Nairobi, Kenya;Tokyo, Japan; Brasilia, Salvador and Rio
de Janeiro, Brazil. After his undergraduate studies, Jordan worked in New York
City for Gensler Architecture, Planning and Design Worldwide where he had the
opportunity to contribute to mixed-use master planning projects, LEED projects
and “sustainability consulting” initiatives. During his time at Gensler, Jordan
gained a great deal of experience and knowledge pertaining to architecture and
the built environment, he became a LEED Accredited Professional, obtaining
his professional accreditation for doing sustainable work in existing buildings
and operations and maintenance. In 2009, Jordan took his talents to Red Lake
Minnesota where he helped the Red Lake Band of Chippewa Indians apply for
and receive over $280,000 in grant funds and spearheaded several planning,
economic development and energy related initiatives. In 2012, Jordan began his
MastersdegreeattheUniversityofMemphis. Inhisfirstsemester,Jordanworked
as the community meeting organizer for the University’s Vance Avenue Choice
Neighborhoods Grant. During the summer Jordan took part in an Environmental
Planning summer course which travelled to Catania, Sicily, Italy to present best
practices for sustainable economic development through agriculture. During
the summer of 2012, Jordan also worked with the Memphis Area Association
of Governments (MAAG) to develop the Comprehensive Economic Development
Strategy (CEDS) for Greater Memphis. This plan ended up being the starting
point of Jordan’s current Capstone project. In the fall, Jordan worked as the Safe
Routes to School Coordinator for Frayser Elementary School. Recently, in 2013
Jordan worked at the University’s Center for Partnerships in GIS (CPGIS). In his
role at CPGIS, Jordan helped to develop a database model for the Memphis MPO
and designed Map Representations for the Databases’prominent feature classes.
In August of 2013, Jordan was called back to the Memphis Area Association
of Governments (MAAG) to work full-time and continues to work on CEDS
development as well as administering a number of housing programs, servicing
local planning contracts and assisting in grant writing and administration.
Background
3. 3
1. Introduction
What is CEDS?
Why analyze CEDS process?
EDA & NADO Guidance
Gap Analysis Approach & Innovation Assets
2. MAAG CEDS
Organizational Mission
Identified Priorities
2013 CEDS Update
Summary Background
SWOT
Economic Base Analysis
Work Plan & Economic Development Activities
3. Regional Economic Development Planning
RATIONALE
Positive Development
Regionalism
Justice
Sustainability
APPROACH
Community Engagement
Education andWorkforce Development
Small Business Assistance/ Entrepreneurialism
Business Recruitment and Retention
Asset Mapping, Performance Metrics and Data Driven Analysis
BEST PRACTICES
Regional Development Consortium
Value Chain
Rural Growth Model
Self-Reliance
LOCAL EXAMPLES
WestTennessee DayTrippin’
Community LIFT
WestTN Regional Planning Organization (RPO)
4. Works Cited
4
10
34
42
52
60
62
Table of Contents
4. 4
Introduction
What is CEDS?
(CEDS)
A comprehensive economic development strategy (CEDS) is designed
to bring together the public and private sectors in the creation of an
economic roadmap to diversify and strengthen
regional economies. The CEDS should analyze the
regional economy and serve as a guide for establishingregional
goals and objectives, developing and implementing a
regionalplan of action, and identifying investment
priorities and funding sources. A CEDS integrates a
region’s human and physical capital planning
in the service of economic development. Integrated
economic development planning provides the flexibility to adapt
to global economic conditionsand fully utilize
the region’s unique advantagesto maximize
economic opportunity for its residents byattracting the
private investment that creates jobsfor the
region’s residents. A CEDS must be the result of a continuing economic
development planning processdeveloped with broad-
based and diverse public and private sector
participation, and must set forth the goals and objectives
necessary to solve the economic development problems of the region and
clearly define the metrics of success. Finally, a
CEDS provides a useful benchmarkby which a regional economy
can evaluate opportunities with other regions in the national economy.
As the federally designated Economic Development District, MAAG
is responsible for developing and implementing the region’s
Comprehensive Economic Development Strategy (CEDS). The CEDS
analyzes our regional economy and serves as a guide for establishing
regional goals and objectives, developing and implementing a
regional plan of action, and identifying investment priorities and
funding sources. MAAG staff works closely with the MAAG Board
of Directors, the MAAG CEDS Committee and community leaders
from the public and private sector in this effort. Updates to the
CEDS are submitted annually. The CEDS is a federally funded
Partnership Planning program through the Economic Development
Adminstration.
Since completing the 2012 CEDS MAAG has been designated by
the National Association of Development District to an Economic
Development Administration organized Steering Committee for CEDS
Guidelines Development.
5. 5
GOALS
• Measure a comprehensive set of performance metrics
• Assess the long-term trends leading to the current climate
• Identify the key issues and create a sense of urgency
• Map and analyze existing assets.
• Create a quality of place vision for the region.
• Set measurable goals
• Develop strategies for targeted industry clusters
• Involve the entire region/community, including the private sector
• Foster a climate of innovation and entrepreneurship
• Implement and monitor progress
Introduction
Why Analyze CEDS Process?
MAAG (Memphis Area Association of Governments)
CEDS (Comprehensive Economic Development Strategy)
As an organization, MAAG is looking at utilizing the CEDS planning process to help
develop new initiatives which seek to engage regional stakeholders in efforts to
collaborate on and enhance regional awareness surrounding economic development
issues and identifying tools to address needs.
Through participatory planning, research, outreach, and benchmarking, MAAG will
build upon the content and objectives of the 2012 CEDS and seek to transform the
next deliverable into actionable steps which can be implemented in an incremental
approach.
In 2013, MAAG developed an update to the CEDS which takes into consideration
new guidance from the Economic Development Administration (EDA) and the
NationalAssociationofDevelopmentDistricts(NADO). The2013updateprovidesthe
foundation for this research and provides a base of information on which to build
towards regional economic planning efforts. Going forward the goals of the CEDS
planning process are as follows:
WhilemanyofthesegoalsareaddressedinthecurrentCEDS,thisdocumentwillseek
to address the curent gaps in the regional planning conversation. This gap analysis
approachwillprovideasnapshotofthe2013CEDSasastartingpointandprovidebest
practice strategies, rationales, and approaches for regional economic development
planning. Through this analysis, it will be determined what strategies need to be
pursued in order to achieve our stated goals, and move forward as a region.
6. 6
Mission
To lead the federal economic development agenda by promoting
innovation and competitiveness, preparing American regions for growth
and success in the worldwide economy.
The U.S. Economic Development Administration’s investment policy is
designed to establish a foundation for sustainable job growth and the
building of durable regional economies throughout the United States.
This foundation builds upon two key economic drivers - innovation and
regional collaboration.
Investment Priorities
Within the parameters of a competitive grant process, all projects are
evaluated to determine if they advance global competitiveness, create
jobs, leverage public and private resources, can demonstrate readiness
and ability to use funds quickly and effectively, and link to specific and
measureable outcomes. To facilitate evaluation, EDA has established the
following investment priorities:
1. Collaborative Regional Innovation
2. Public/Private Partnerships
3. National Strategic Priorities
4. Global Competitiveness
5. Environmentally-Sustainable Development
6. Economically Distressed and Underserved Communities
Core Components of the Comprehensive
Economic Development Strategy
Since the 2012 CEDS was completed, the EDA has been evaluating the resulting
plans and working to develop new guidelines to increase the impact of local
planning efforts. Going forward the core components of the CEDS will be as
follows.
From the regulations governing the CEDS (see 13 C.F.R. § 303.7), the following
sections must be included in the CEDS document:
1. Summary Background:
A summary background of the economic conditions of the region;
2. SWOT Analysis:
An in-depth analysis of economic and community strengths,
weaknesses, opportunities and threats (commonly known as a
“SWOT”analysis);
3. Strategic Direction/Action Plan:
Strategic direction/approaches and an action plan (flowing from
the SWOT analysis), which should be consistent with other relevant
state/regional/local plans. The action plan should also identify the
stakeholder(s) responsible for implementation;
4. Evaluation Framework: Performance measures used to evaluate the
organization’s successful development and implementation of the
CEDS.
In addition to the sections noted above, the CEDS document must incorporate
the concept of economic resiliency (i.e., resiliency to economic shifts, natural
disasters, climate change, etc.). This can take multiple forms such as a separate
section, distinct goal or priority action item, or imbedded in the overarching
SWOT analysis .
Introduction
Economic Development Administration
7. 7
In late August 2013, the Economic Development Administration (EDA)
provided the National Association of Development Organizations (NADO)
with a draft copy of their new proposed Comprehensive Economic
Development Strategies (CEDS). EDA staff asked for comments on the
proposed guidelines from their membership over the next few months.
At the Annual Training Conference in San Francisco, the NADO Board of
Directors established a CEDS Steering Committee to assist in the review of
the guidelines. Based on prior CEDS development, MAAG leadership was
one of the 19 members from across the nation selected to serve on this
important committee.
As a direct result, MAAG is utilizing the lessons learned through the
CEDS Planning Process to help develop new initiatives and to inform the
National discussion surrounding economic development.
EDA Economic Development Districts:
Peer Standards of Excellence
Mission:
Thenation’s380EconomicDevelopmentDistricts(EDDs)shareacommonvision
and mission of promoting economic prosperity, regional competitiveness,
and quality of life through regional innovation, collaboration and strategic
investments across America.
Shared Commitment to Excellence:
As a national network, America’s EDDs are committed to pursuing excellence
and innovation in both regional economic development and organizational
performance. This includes fostering a regional strategic planning and
implementation framework that is results oriented, focused on aligning and
leveraging resources, inclusive of public, private and nonprofit sector leaders,
andemphasizestheimportanceofasset-basedregionaleconomicdevelopment.
Seven Principles of CEDS Standards of Excellence
Under federal law, one of the primary functions of EDA-designated
Economic Development Districts (EDDs) is to coordinate and lead a regional
economic development strategy and implementation process known as the
ComprehensiveEconomicDevelopmentStrategy(CEDS)process.Asanindustry,
the nation’s EDDs are committed to advancing seven core principles for CEDS
standards of excellence:
1. Build more resilient economies and communities by focusing and
targeting regional strategies on the existing and potential
competitive advantages of each individual region.
2. Foster a regional collaborative framework to strategically align
public sector investments from federal, state and local sources,
as well as private, nonprofit and philanthropic partners.
3. Use modern scenario, data and analysis tools and planning
techniques that provide policy makers, stakeholders and
the public with evidence-based and factual based information.
4. Transform the CEDS process into a more strategy-driven planning
process focused on regional visioning, priorities setting and
performance outcomes, rather than broad-based encyclopedia or
narrative of the region with a laundry list of random projects and
programs.
5. Promote and support peer reviews and exchanges of Economic
Development District planning professionals and policy officials with
the goal of increasing collaboration across EDD boundaries,
enhancing organizational resources, and positioning regional CEDS
as more effective building blocks for statewide and local strategies.
6. Communicate in a compelling and modern communication style,
including use of executive summaries, high quality print and
online media, and social media.
7. Engage the public, private, nonprofit and educational sectors,
along with the general public, in the development and
implementation of the CEDS.
National Association of Development Organizations (NADO)
Introduction
National Association of
Development Districts (NADO)
8. 8
EDA Regional Development Consortium
EDA outlines several “Innovation Assets” which help to promote healthy local
economies. Usingthisframework,conclusionscanbedrawnaboutwhatthecurrent
strengths of the region are and help us to identify where asset deficiencies exist.
Where gaps do exist, there are approaches which can help to promote development
oftheseassets. Goingforward,CEDSplanningshouldseektoengagetheregionand
its stakeholders in order to understand the current state of the regional economy
and plan to enhance or develop initiatives aimed at growing local Innovation Assets.
WHERE AREWE?
WHERE DOWEWANTTO GO?
Introduction
GAP Analysis Approach
9. 9
REGIONAL INNOVATION ASSETS
Government Policies – the presence of a business climate that fosters the
growth of technology companies.
CommunityMindset–acollectiveframeofmindfocusedoncollaboration,
commitment to common goals, and proactive, strategic transformation.
Entrepreneurial Capacity – the ability to generate entrepreneurial
endeavors through the development of new ideas.
Business Acumen – the resident business knowledge necessary to turn
good ideas into sound business models.
Risk Capital - the availability of requisite capital to finance high-risk, high-
growth entrepreneurial endeavors.
Networking Opportunities – an inherent environment that fosters
synergies and connections.
Research and Development Enterprise – the capacity of a region’s R&D
enterprisetoconductcutting-edgeresearchcombinedwiththedesiretosee
that research applied to solve real-world problems.
Technology Commercialization Competence – the capacity to
streamline and accelerate the process by which market-driven research is
translated into products or processes that create economic value.
Human Capital – the availability of a highly-skilled, technically-trained
workforce.
“A Buzz” – a regional identity/brand exists focused on entrepreneurial
endeavors that are embraced internally and externally.
Physical Infrastructure – the capacity within a region to support
entrepreneurial start-ups with desirable physical assets, such as specialized
space, dedicated equipment, information and communication technologies,
and logistics.
Industrial Base – resident cutting-edge, high-growth firms with global
market penetration based on disruptive technologies that in turn builds
comparative advantage for the region.
Global Linkages – the capacity to compete and participate on the global
stage, leading to greater growth potential.
Innovative Culture – the presence of an intrinsic culture that celebrates
entrepreneurship, which in turn generates an environment where startup
businesses can thrive and the pipeline for future entrepreneurs builds.
Quality of Life – the presence of a diverse, creative environment that
fosters an open, dynamic live/work/play community that in turn attracts
more creative people, as well as businesses and capital.
Introduction
Innovation Assets
11. 11
This section will highlight the 2013 MAAG CEDS. It contains an overview
of the organization, priorities for regional economic development as
determined by the CEDS committee, a summary background of the MAAG
region including a SWOT analysis, an economic base analysis which
discusses selected social and economic characteristics of the region,
MAAG’s current work plan and Economic Development Activities.
The 2013 CEDS seeks to answer the question: WHERE AREWE?
Only through understanding of the current economic and social climate
canwedeterminethebestcourseofactiontoaddressneedsandprioritize
strategies.
MAAG CEDS
WHERE AREWE?
12. 12
The Memphis Area Association of Governments (MAAG) is one of nine
statewide development districts established by the General Assembly
under the Tennessee Development District Act of 1965. Like all districts
in Tennessee, MAAG is legislated to provide comprehensive planning
and promote economic, community, and human resource development
in its defined geographic region. As a public non-profit association of
local governments, MAAG serves Fayette, Lauderdale, Shelby and Tipton
counties in Tennessee, Crittenden County, Arkansas and DeSoto County,
Mississippi. With offices located in Cordova, an executive director and
a board of directors consisting of member government officials, state
representatives, state senators, industrial representatives, and minority
representativesmanageMAAG. Anexecutivecommitteemeetsfourtimes
each year to set policy and conduct business on behalf of the full board.
The agency was organized in 1971, and is currently staffed by four
people, who have technical expertise in program areas of economic
development, community development, housing, environmental
planning, infrastructure needs, historical preservation, tourism and
transportation planning. Financial support for these program areas
is provided primarily by federal and state funds received from the U.S.
Department of Commerce, Economic Development Administration, U.S.
Department of Agriculture, Rural Development Administration,Tennessee
Housing Development Agency, Tennessee Department of Economic and
Community Development, Tennessee Department of Environment and
Conservation, Tennessee Advisory Commission on Intergovernmental
Relations, Tennessee Department of Transportation, Tennessee
Department ofTourist Development, and the Delta Regional Authority.
In addition to the state and federal funding sources, MAAG also receives
membership dues from local governments, fees for grant management
services, and program income from MAAG’s small business loan programs.
Mission Statement
It is the mission of Memphis Area Association of Governments to assist and
support its members in matters related to regional planning, economic
development and intergovernmental matters.
Vision Statement
Our vision is to partner with local and regional governmental leaders filling the
gap as a resource to improve, promote and support economic growth in the
communities we serve.
Engaging Regions to
Better Understand
Development Desires
ProvideTechnical Support
and Links to Resources
Leveraging Existing Assets
MAAG CEDS
Organizational Profile and Mission
MAAG Service Area
13. 13
MAAG CEDS
Priority Identification
Top concerns relating to industrial development
1. New Industrial Sites - 62%
2. Job Skills Training - 57%
3. Building Public Improvements - 52%
4. Marketing of Existing Buildings - 52%
5. Financing Programs - 33%
Business recruitment and education
Top concerns relating to business development
1. Small Business Assistance - 71%
2. Downtown/Commercial Redevelopment - 47%
3. Marketing Assistance - 38%
4. Tourism - 38%
Business retention and education
Top concerns relating to planning and management
1. Federal/State Programs - 71%
2. Local Leadership Training - 57%
3. Administration/Financial Assistance - 57%
4. Grantwriting/Administration - 52%
5. Information Management - 14%
6. Development Controls - 14%
7. Mapping/GIS - 14%
8. Redistricting - 9%
Resources and education
Recruitment
Retention
Resources
and
Education
Promotion of High-Tech
Job Skills Training
Leveraging Existing Assets
Priority Identification
2012 CEDS SURVEY ANALYSIS
The 2012 CEDS Survey distributed to regional stakeholders in 2012 gives a clear
picture of what the regional priorities and needs are.
In 2013, the CEDS committee met and a more clearly defined set of specific
priorities were identified. These priorities will contribute to MAAG’s future
Economic Development objectives and efforts.
2013 CEDS Committee Meeting
Identified Priorities
• Need for MAAG to be“regional
convenor”
• I-269 corridor plan - marketing/
collaborative/fundraising
• Funding for I-69
• Dealing with outmigration (Memphis
to Rural Areas)
• Business Recruitment
• Tourism
• Promotion of CEDS
• Freight Logistics Grant
• Funding models to reduce reliance
on Government
• Marketing the region
• Engagement
• Positivity (Changing outside
Perceptions)
• Self-reliance/entrepreneurship
• Innovation
• Rural Growth models
• Infrastructure
2012 CEDS Survey Top Priorities
14. 14
MAAG CEDS
2013 CEDS Summary Background
Center.” The Memphis International Airport also has a Delta hub and
the FedEx headquarters/global operations center. The area is traversed
by I-40 and I-55 interstates, with the NAFTA I-69 being constructed to
intersect the area as well as five Class-I railroads. The City is bordered
by the Mississippi River which opens up the river to provide additional
access to the western part of the United States. The City is a regional
and national hub for transportation and logistics, providing access to the
entire country through air, roadways, railways, and waterways.
The Memphis region also has significant medical research facilities
including the University of Tennessee Health Science Center, St. Jude
Children’s Research Hospital and the University of Memphis.While some
research is done collaboratively, each institution has its own research
focus such as St. Jude Children’s Research Hospital which is known for its
focus on children’s diseases and bio- and health sciences. St. Jude is one
oftheworld’spremierecentersforresearchandtreatmentofcatastrophic
children’s diseases.
Furthermore, the Memphis region offers a wide range of attractions
that bring tourists from regional, national and global areas and adds
to the quality of life for area residents. Sports, convention and musical
venues are dispersed throughout the metro area and across the region
and people come from all over to visit the nationally known venues such
as: Beale Street, Graceland, the Smithsonian Rock ‘n Soul Exhibit, the
GibsonGuitarExperience,thePyramid,PeabodyPlaceandHotel,andthe
National Civil Rights Museum.
Summary Background
Historically, Greater Memphis’s economic growth has been strong,
outperforming the nation up until the recent recession. Memphis
suffered significant economic losses in the recession, with local
employment being especially hard hit.
Therecessionhasamplifiedourchallenges.Innovationhasdisrupted
stability, but has also created new opportunities. Automation and
efficiencies have eliminated the need for many workers in different
sectors. New industry clusters have moved to or emerged in the
South.
The region’s industrial and spatial growth patterns limit many
workers’ access to economic opportunity. Greater Memphis’s
economic development has created over 200,000 jobs since 1980
butmanyofthesejobsareinmaterialsmovingorlow-skilledservice
occupations.These jobs provide few opportunities for advancement
and can be difficult to access by transit.
Greater Memphis’s advantages as a global trade hub provide a
platform that the region’s leaders can leverage. The strength of the
local logistics industry has fueled growth in related industries and
acrosssectors.Theregion’sleadershipshouldcontinuetoencourage
thiseconomicdiversificationbyinvestingintheskills,infrastructure,
and other inputs desired by these industries.
WhenlookingattheMemphisregionitisimportanttonotethatitis
thecultural,economic,social,andenvironmentalcenteroftheMid-
SouthandwhatbenefitstheCityofMemphiswillbenefittheregion.
The area is centrally located between Nashville, Huntsville-Decatur,
Little Rock and Jackson, MS. It is home to the nation’s largest
air cargo facility and is known as “North America’s Distribution
2013 CEDS UPDATEPrepared by the Memphis Area Association of Governments
EVALUATING CEDS PLANNING PROCESS AND NEXT STEPS
Comprehensive Economic Development Strategy
15. 15
MAAG CEDS
SWOT Analysis
S W
O T
INTERNAL
EXTERNAL
POSITIVE
NEGATIVE
STRENGTHS
Agricultural Assets
Recreational/Natural Assets (Shelby Farms,etc.)
Tri-State Region (Diversified Incentives and Communities)
Multi-Modal Transportation (Logistics)
Cultural Assets (Tourism)
Location
Available Land
Healthcare and Research Cluster
WEAKNESSES
Over-supply of single-family homes
Sprawl
Poverty
Crime/Perception
Lack of Resources
Fragmentation/Internal Competition
Workforce Skill Level
Social/Economic Segregation
Diversity of Economic Base
Blight
Food Deserts
OPPORTUNITIES
Education Attainment
Workforce Development
Business Recruitment
Agro-Tourism
Geurilla Planning
Regional Planning
Small Business Assistance
Brownfield Development
Web-Based CEDS Development
Resource Mapping
Downtown Redevelopment
THREATS
Global Competition
Climate Change
Loss of skilled jobs
Business relocation
Outmigration
TheMemphisregionisanareaoftremendousopportunityaswellassignificantchallenges. WhileMemphishasmanaged
to exhibit economic resilience throughout its history by adjusting to National changes in the economy, social challenges
have continued to plague the region. Social and Economic segregation have contributed to the proliferation of crime,
poverty, racial disharmony and internal competition. Despite this, the Memphis region boasts tremendous assets, within
which Memphis’great potential lies. As a region, the Memphis Area is host to a number of large companies, economic
clusters and is strategically located for distributional efficiency. Through targeted efforts, specifically aimed at creating
opportunities for members of the region’s disadvantaged communities Memphis could further establish itself as the
economicdriverforthegreaterMid-South,andtheentireDelta. Throughcollaboration,promotionofeducation,workforce
development, community development, and smart planning, Memphis can begin to address the blight and other issues
which prevent it from attracting the type of firms which provide high-paying skilled employment opportunities for the
creative class. These efforts, however, will only work if they are done as a region. Currently, Memphis is not lacking
in positive attributes, however, the spatial distribution of the city has created real problems. Suffering from significant
sprawl,thecityhasseenvastareassufferfromdisinvestment,whilethepopulationcontinuestomovefurtherandfurther
awayfromthecity. Ifthistrendistoreverse,thaninnovativeplanningeffortsareneededtorevivetheregion’sdowntown
areas.
16. 16
MAAG CEDS
Economic Base Analysis
Memphis Area Population
Straight Line Extrapolation
Male Female Total Male Female Total Male Female Total Male Female Total
Population 559,420 603,295 1,162,715 609,405 659,366 1,268,771 8.9% 9.3% 9.1% 663,642 720,687 1,384,329
Memphis Area, 2000 Memphis Area, 2012 % Change 2024 Projection
Memphis Area Population
2012
Population
Crittendon County
50,618
DeSoto County
161,536
Memphis Area
Population
1,268,771
Shelby County Fayette CountyLauderdale County Tipton County
929,437 27,772 61,03838,370
Memphis Area Population
2000
Population
Crittendon County DeSoto County
Memphis Area
Population
27,101 28,806 51,271 50,866 107,199 1,162,715
Shelby County
897,472
Lauderdale County Fayette County Tipton County
Population Dynamics
Is Memphis Growing?
The current population of the Memphis Area is approximately 1,268,771 people. This number represents a 9% increase in population size since
2000 when the population was 1,162,715. Using straight-line extrapolation methods, in 2024 the population of the six county area will be
approximately 1,384,329 people.
Note: This analyis examines data from the MAAG Area
(denoted“Memphis Area”) and the Memphis MSA
which includes a couple of additional counties.
MSA Boundaries
Memphis (MAAG) Area
17. 17
MAAG CEDS
Economic Base Analysis
The Next Generation
One of the key indicators of a successful economy is the ability to attract and retain talent. In urban areas with lots of opportunities, you
will find high numbers of young people (aged 25-34) that represent new talent in the workforce. Cities with high proportions of this age
cohort have shown the ability to attract college graduates to their city and often have more vibrant urban cores due to the preference of
youngpeopletoliveinurbanizedanddowntownareas. Unfortunately,despiteitsgrowth,itappearsthatMemphisislosingitsyoungtalent.
WhilethenumbersofyoungpeopleinMemphishavegrownalongwiththetotalpopulation,theproportionofpeopleaged25-34hasfallen
slightlyincomparisontothe2000figures. In2000,youngfolkscomprised15percentofthetotalpopulationinMemphis. Yet,in2010,young
folks comprised just under 14 percent of the population. This data indicates that Memphis is either attracting less new talent, or less young
Memphians are staying local once they reach adulthood.
60,000 40,000 20,000 0 20,000 40,000 60,000
Under 5 years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 29 years
30 to 34 years
35 to 39 years
40 to 44 years
45 to 49 years
50 to 54 years
55 to 59 years
60 to 64 years
65 to 69 years
70 to 74 years
75 to 79 years
80 to 84 years
85+
Memphis Area 2012 Population Pyramid
Male
Female
60,000 40,000 20,000 0 20,000 40,000 60,000
Under 5 years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 29 years
30 to 34 years
35 to 39 years
40 to 44 years
45 to 49 years
50 to 54 years
55 to 59 years
60 to 64 years
65 to 69 years
70 to 74 years
75 to 79 years
80 to 84 years
85+
Memphis Area 2000 Population Pyramid
Male
Female
18. 18
Recently,theMemphis,TN-MS-ARMetropolitanStatisticalArea(MSA)earnedthedistinctionofbeingthefirstmajorityminoritymajormetropolitan
area in the United States. While there are several cities that have urban centers which are majority minority, typically the surrounding fringe and
suburb communities balance the racial dynamics towards a white (or Hispanic) majority in most metropolitan areas. Due to the fact that the US
census does not include Hispanic amongst its racial categories, statistically speaking, Memphis is unique in its distinction as the only majority
minority city. This distinction begs the question,“What does this mean for Memphis?” Since the demographic make-up of Memphis is different
than the rest of the country, a closer look at the numbers is needed to paint a clear picture of what is going on within the metropolis and why.
In 2000, white folks comprised approximately 53 percent of the Memphis MSA’s population (636,707); since that time, the white community has
lostapproximately6000peopleregionwide(-1%). Currently,thewhitepopulationisapproximately630,714or48percentofthetotalpopulation.
During this same time period, the black community grew by 15 percent from 522,923 individuals to 601,043 people. The Asian community also
grew significantly during this time period expanding by 52 percent from 16,000 to 24,000 people. Overall, the trend appears to be that despite
losing white population, all other race categories have been experiencing significant growth.
The Greater Memphis Region, like many cities in the nation, is characterized by a“black”urban core, and“white”suburban communities. During
the second half of the 20th Century, much of urban America experienced“white flight”as American cities saw their white residents flee the city
center for seemingly more attractive suburban lifestyles. Memphis is no different; from 2000 to 2010, Memphis’urban core lost 15 percent of
its white residents falling from 34 percent to 29 percent of the total population. As a direct result, the African American proportions rose from
61 percent to 63 percent despite minimal population growth. Overall, there is negative growth in the urban core, the total population of urban
Memphis has fallen by 3,000 people since 2000. Therefore, all of the growth the Memphis region has been experiencing has occurred in the
suburbs, which have grown by 20% since 2000.
Based on the census data, it would appear that the majority of the urban white population loss is being absorbed by the suburban communities,
resultingina7percentincreaseinwhitepopulationfrom2000to2010. Additionally,itwouldappearthatthesuburbancommunitiesarebecoming
increasingly integrated with high levels of minority infiltration into suburban communities. Suburban growth has seen a 53 percent increase in
blackpopulationsanda126percentincreaseinAsianpopulations. Asaresult,thesuburbanracialcompositionhaschangedfrombeing75percent
white, to being 65 percent white. Currently, blacks comprise almost 30 percent of the total suburban population, up 6 percent from 2000. Based
on these numbers, we can reasonably assume that the suburban communities are becoming increasingly integrated.
Racial Composition
MAAG CEDS
Economic Base Analysis
Black
White
Asian
Latino
19. 19
Race by the Numbers
Memphis MSA Racial Compostion by Location, 2000
Population Pct of Total Population Pct of Total Population Pct of Total
White alone 636,707 53% 223,654 34% 413,053 74%
Black or African American alone 522,923 43% 397,702 61% 125,221 23%
American Indian and Alaska Native alone 2,521 0% 1,216 0% 1,305 0%
Asian alone 16,152 1% 9,819 2% 6,333 1%
Native Hawaiian and Other Pacific Islander alone 659 0% 427 0% 232 0%
Some other race alone 13,264 1% 9,648 1% 3,616 1%
Two or more races 12,978 1% 7,379 1% 5,599 1%
Total 1,205,204 649,845 555,359
Memphis MSA Racial Compostion by Location, 2010
Population Pct of Total Population Pct of Total Population Pct of Total
White alone 630,715 48% 190,120 29% 440,595 66%
Black or African American alone 601,043 46% 409,687 63% 191,356 29%
American Indian and Alaska Native alone 3,360 0% 1,549 0% 1,811 0%
Asian alone 24,479 2% 10,146 2% 14,333 2%
Native Hawaiian and Other Pacific Islander alone 613 0% 300 0% 313 0%
Some other race alone 37,404 3% 26,163 4% 11,241 2%
Two or more races 18,486 1% 8,924 1% 9,562 1%
Total 1,316,100 646,889 669,211
Change in Memphis MSA Racial Compostion, 2000-2010
Total Change Pct Change Total Change Pct Change Total Change Pct Change
White alone (5,992) -1% (33,534) -15% 27,542 7%
Black or African American alone 78,120 15% 11,985 3% 66,135 53%
American Indian and Alaska Native alone 839 33% 333 27% 506 39%
Asian alone 8,327 52% 327 3% 8,000 126%
Native Hawaiian and Other Pacific Islander alone (46) -7% (127) -30% 81 35%
Some other race alone 24,140 182% 16,515 171% 7,625 211%
Two or more races 5,508 42% 1,545 21% 3,963 71%
Total 110,896 (2,956) 113,852
MSA Within Memphis Outside Memphis
MSA (current boundaries) Within Memphis Outside Memphis
MSA Within Memphis Outside Memphis
MAAG CEDS
Economic Base Analysis
20. 20
United States
Crittenden
County,
Arkansas
DeSoto
County,
Mississippi
Fayette
County,
Tennessee
Lauderdale
County,
Tennessee
Shelby
County,
Tennessee
Tipton
County,
Tennessee
Memphis Area
Total Total Total Total Total Total Total Total
204,336,017 31,267 103,255 26,886 18,407 589,395 39,232 808,442
6.0% 6.8% 3.8% 6.6% 8.2% 4.8% 5.7% 4.9%
8.2% 14.5% 7.7% 9.0% 17.4% 9.3% 9.9% 9.5%
28.2% 34.8% 30.9% 36.1% 43.6% 27.2% 37.5%
29.1%
21.3% 24.0% 27.2% 22.2% 16.4% 24.0% 25.2% 24.2%
7.7% 5.4% 9.2% 5.9% 3.6% 6.0% 7.3% 6.4%
17.9% 10.8% 15.0% 14.3% 7.5% 18.1% 10.0% 16.7%
10.6% 3.7% 6.2% 5.9% 3.3% 10.6% 4.5% 9.2%
85.7% 78.7% 88.5% 84.5% 74.4% 85.9% 84.4% 85.6%
28.5% 14.6% 21.2% 20.2% 10.8% 28.7% 14.5% 25.8%
26.5% 28.7% 21.8% 27.9% 32.0% 34.4% 19.6% 31.6%
13.1% 18.9% 7.5% 9.3% 21.7% 19.4% 12.3% 17.2%
9.6% 16.2% 6.6% 5.8% 18.0% 11.8% 7.7% 11.0%
4.1% 2.7% 1.6% 3.6% 3.0% 4.1% 4.9% 3.7%
35,522 30,882 37,250 36,731 26,182 33,036 33,155 33,464
19,642 20,815 21,990 19,156 21,733 17,102 20,822 18,224
27,607 26,038 31,212 30,630 23,857 25,588 26,841 26,513
33,857 30,600 37,686 39,059 26,695 31,626 35,232 32,670
50,096 48,342 46,705 53,222 38,053 48,169 46,802 47,860
66,109 54,384 61,801 55,313 45,303 61,641 55,367 60,494
4.6% 5.0% 3.6% 3.7% 4.4% 4.8% 2.7% 4.5%
Subject
Population 25 years and over
Some college, no degree
Associate's degree
Bachelor's degree
Less than 9th grade
9th to 12th grade, no diploma
High school graduate (includes
equivalency)
Percent bachelor's degree or
higher
Graduate or professional degree
Percent high school graduate or
higher
POVERTY RATE FOR THE
POPULATION 25 YEARS AND OVER
FOR WHOM POVERTY STATUS IS
DETERMINED BY EDUCATIONAL
ATTAINMENT LEVEL
Less than high school graduate
High school graduate (includes
equivalency)
MEDIAN EARNINGS IN THE PAST 12
MONTHS (IN 2012 INFLATION-
ADJUSTED DOLLARS)
Population 25 years and over
with earningsLess than high school graduate
Some college or associate's
degreeBachelor's degree or higher
Educational attainment
Graduate or professional degree
PERCENT IMPUTED
High school graduate
(includes equivalency)
Some college or associate's
degreeBachelor's degree
Education Attainment
TheMemphisAreahasverysimilareducationattainmentstatisticstothatoftherestofthecountry. Whiletheratioofcollegedegreesattainedin
the region is slightly lower than the national average, the rate of people who graduate high school or complete equivalency programs are slightly
higher than national figures. This is not entirely surprising considering the fact that the local economy is largely built around“blue collar”labor,
and there is a relatively lower demand for skilled“white collar”workers.
While education rates are relatively normal for the Memphis area, statistics show that unless local residents do acquire a Bachelor’s degree or
higher, they are much more likely to be living below the poverty line than national counterparts. Conversely, those who do acquire a Bachelor’s
degree or better, are less likely to live below the poverty line than national counterparts.
MAAG CEDS
Economic Base Analysis
21. 21
Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent
243,810,053 243,810,053 37,390 37,390 121,012 121,012 30,504 30,504 21,777 21,777 713,977 713,977 46,868 46,868 971,528 971,528
157,664,311 64.7% 23,878 63.9% 85,467 70.6% 18,972 62.2% 11,105 51.0% 472,055 66.1% 30,257 64.6% 641,734 66.1%
156,533,205 64.2% 23,840 63.8% 85,166 70.4% 18,921 62.0% 11,105 51.0% 470,864 65.9% 29,852 63.7% 639,748 65.8%
141,996,548 58.2% 20,790 55.6% 78,113 64.5% 17,025 55.8% 9,400 43.2% 417,662 58.5% 25,920 55.3% 568,910 58.6%
14,536,657 6.0% 3,050 8.2% 7,053 5.8% 1,896 6.2% 1,705 7.8% 53,202 7.5% 3,932 8.4% 70,838 7.3%
1,131,106 0.5% 38 0.1% 301 0.2% 51 0.2% 0 0.0% 1,191 0.2% 405 0.9% 1,986 0.2%
86,145,742 35.3% 13,512 36.1% 35,545 29.4% 11,532 37.8% 10,672 49.0% 241,922 33.9% 16,611 35.4% 329,794 33.9%
156,533,205 156,533,205 23,840 23,840 85,166 85,166 18,921 18,921 11,105 11,105 470,864 470,864 29,852 29,852 639,748 639,748
14,557,588 9.3% 3,052 12.8% 7,069 8.3% 1,892 10.0% 1,710 15.4% 53,208 11.3% 3,940 13.2% 70,871 11.1%
141,996,548 141,996,548 20,790 20,790 78,113 78,113 17,025 17,025 9,400 9,400 417,662 417,662 25,920 25,920 568,910 568,910
2,699,250 1.9% 441 2.1% 474 0.6% 447 2.6% 341 3.6% 1,392 0.3% 284 1.1% 3,379 0.6%
9,221,878 6.5% 1,208 5.8% 5,494 7.0% 1,454 8.5% 422 4.5% 20,563 4.9% 2,019 7.8% 31,160 5.5%
15,079,996 10.6% 2,686 12.9% 8,399 10.8% 2,556 15.0% 2,196 23.4% 35,704 8.5% 3,663 14.1% 55,204 9.7%
4,018,762 2.8% 683 3.3% 3,899 5.0% 630 3.7% 350 3.7% 15,030 3.6% 792 3.1% 21,384 3.8%
16,422,596 11.6% 2,685 12.9% 7,683 9.8% 2,107 12.4% 968 10.3% 46,062 11.0% 3,178 12.3% 62,683 11.0%
7,096,633 5.0% 1,813 8.7% 10,378 13.3% 1,327 7.8% 638 6.8% 47,858 11.5% 1,934 7.5% 63,948 11.2%
3,139,327 2.2% 218 1.0% 783 1.0% 270 1.6% 53 0.6% 6,453 1.5% 369 1.4% 8,146 1.4%
9,574,851 6.7% 1,063 5.1% 4,121 5.3% 886 5.2% 398 4.2% 26,262 6.3% 1,386 5.3% 34,116 6.0%
15,141,136 10.7% 1,346 6.5% 5,977 7.7% 1,326 7.8% 551 5.9% 42,539 10.2% 1,752 6.8% 53,491 9.4%
32,513,621 22.9% 4,700 22.6% 15,011 19.2% 3,413 20.0% 1,750 18.6% 93,853 22.5% 5,247 20.2% 123,974 21.8%
13,039,332 9.2% 1,889 9.1% 8,804 11.3% 850 5.0% 498 5.3% 40,132 9.6% 2,151 8.3% 54,324 9.5%
7,027,803 4.9% 1,138 5.5% 4,221 5.4% 1,007 5.9% 382 4.1% 21,290 5.1% 1,435 5.5% 29,473 5.2%
7,021,363 4.9% 920 4.4% 2,869 3.7% 752 4.4% 853 9.1% 20,524 4.9% 1,710 6.6% 27,628 4.9%
141,996,548 141,996,548 20,790 20,790 78,113 78,113 17,025 17,025 9,400 9,400 417,662 417,662 25,920 25,920 568,910 568,910
111,686,094 78.7% 16,027 77.1% 64,012 81.9% 13,242 77.8% 6,794 72.3% 333,719 79.9% 19,581 75.5% 453,375 79.7%
21,192,565 14.9% 3,463 16.7% 9,649 12.4% 2,405 14.1% 1,925 20.5% 61,569 14.7% 4,694 18.1% 83,705 14.7%
8,907,425 6.3% 1,251 6.0% 4,386 5.6% 1,360 8.0% 681 7.2% 22,100 5.3% 1,587 6.1% 31,365 5.5%
210,464 0.1% 49 0.2% 66 0.1% 18 0.1% 0 0.0% 274 0.1% 58 0.2% 465 0.1%
Crittenden County,
Arkansas
Memphis AreaSubject United States
DeSoto County,
Mississippi
Fayette County,
Tennessee
Lauderdale County,
Tennessee
Shelby County,
Tennessee
Tipton County,
Tennessee
Civilian labor force
Employed
Unemployed
EMPLOYMENT STATUS
Population 16 years and over
In labor force
Civilian labor force
Percent Unemployed
Armed Forces
Not in labor force
Civilian employed population 16
years and over
Agriculture, forestry, fishing and
hunting, and miningConstruction
INDUSTRY
Transportation and warehousing, and
utilitiesInformation
Finance and insurance, and real
estate and rental and leasing
Manufacturing
Wholesale trade
Retail trade
Other services, except public
administrationPublic administration
Professional, scientific, and
management, and administrative andEducational services, and health care
and social assistanceArts, entertainment, and recreation,
and accommodation and food services
Government workers
Self-employed in own not incorporated
business workersUnpaid family workers
CLASS OF WORKER
Civilian employed population 16
years and over
Private wage and salary workers
Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent Estimate Percent
115,226,802 115,226,802 18,560 18,560 57,518 57,518 14,412 14,412 9,826 9,826 341,948 341,948 21,383 21,383 463,647 463,647
8,272,970 7.2% 2,061 11.1% 2,299 4.0% 965 6.7% 1,153 11.7% 32,288 9.4% 1,579 7.4% 40,345 8.7%
6,260,673 5.4% 1,304 7.0% 1,815 3.2% 800 5.6% 1,012 10.3% 21,872 6.4% 1,274 6.0% 28,077 6.1%
12,309,201 10.7% 2,980 16.1% 5,445 9.5% 1,248 8.7% 1,574 16.0% 40,534 11.9% 2,116 9.9% 53,897 11.6%
11,939,777 10.4% 2,626 14.1% 5,335 9.3% 1,283 8.9% 1,488 15.1% 38,698 11.3% 2,532 11.8% 51,962 11.2%
15,779,346 13.7% 2,343 12.6% 8,697 15.1% 2,013 14.0% 1,432 14.6% 47,983 14.0% 2,708 12.7% 65,176 14.1%
20,929,952 18.2% 3,220 17.3% 12,697 22.1% 3,304 22.9% 1,589 16.2% 59,558 17.4% 4,540 21.2% 84,908 18.3%
14,110,448 12.2% 1,775 9.6% 9,087 15.8% 1,577 10.9% 808 8.2% 36,189 10.6% 3,089 14.4% 52,525 11.3%
14,768,587 12.8% 1,626 8.8% 8,920 15.5% 1,811 12.6% 462 4.7% 37,474 11.0% 2,638 12.3% 52,931 11.4%
5,510,639 4.8% 278 1.5% 2,211 3.8% 710 4.9% 195 2.0% 13,232 3.9% 619 2.9% 17,245 3.7%
5,345,209 4.6% 347 1.9% 1,012 1.8% 701 4.9% 113 1.2% 14,120 4.1% 288 1.3% 16,581 3.6%
53,046 (X) 36,521 (X) 58,851 (X) 56,297 (X) 32,987 (X) 46,251 (X) 51,847 (X) 47,714 (X)
73,034 (X) 51,381 (X) 68,959 (X) 74,738 (X) 45,275 (X) 66,741 (X) 62,570 (X) 66,003 (X)
5,271,043 4.6% 1,768 9.5% 1,742 3.0% 772 5.4% 799 8.1% 17,166 5.0% 1,196 5.6% 23,443 5.1%
3,132,921 2.7% 331 1.8% 582 1.0% 214 1.5% 337 3.4% 11,325 3.3% 753 3.5% 13,542 2.9%
13,180,710 11.4% 4,014 21.6% 5,054 8.8% 2,046 14.2% 2,413 24.6% 66,077 19.3% 3,365 15.7% 82,969 17.9%
28,051 (X) 19,548 (X) 25,073 (X) 28,541 (X) 16,328 (X) 25,465 (X) 22,410 (X) 24,941 (X)
Memphis Area
Shelby County,
Tennessee
Tipton County,
Tennessee
Subject United States
Crittenden County,
Arkansas
INCOME AND BENEFITS
Total households
DeSoto County,
Mississippi
Fayette County,
Tennessee
Lauderdale County,
Tennessee
Mean household income (dollars)
Less than $10,000
$10,000 to $14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more
Median household income (dollars)
Per capita income (dollars)
With Supplemental Security Income
With cash public assistance income
With Food Stamp/SNAP benefits in
the past 12 months
Income & Employment
With regard to income, the Memphis area has similar income levels when compared to National figures. There are, however, slightly (percentage
wise) more people living in poverty, and slightly fewer making more money. This discrepancy is seen with the differences in median (53k vs 47k)
and mean (73k vs 66k) income levels and the significantly higher proportion of people in the Memphis area receiving food stamp benefits.
UnemploymentlevelsintheMemphisareaareslightlyhigher(11.1%)thannationalfigures(9.3%). OnlyDeSotoCounty,Mississippihasalower
unemployment rate (8.3%) than the national average. The remaining 5 counties in the MAAG study area all have unemployment rates that
exceed the national average.
MAAG CEDS
Economic Base Analysis
22. 22
Large Industries
NAICS code Industry description
2007 US
Employment Percent of Total
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Local
Requirements
Export
Employment
Total 120,604,265 549,614
Key (Largest) Industries
561 Administrative & support services 9628468 8.0% 48,137 8.8% 1.10 43,879 4,258
722 Food services & drinking places 9657310 8.0% 44,690 8.1% 1.02 44,010 680
551 Management of companies & enterprises 3121402 2.6% 38,369 7.0% 2.70 14,225 24,144
622 Hospitals 5477818 4.5% 29,865 5.4% 1.20 24,963 4,902
541 Professional, scientific, & technical services 8179941 6.8% 25,451 4.6% 0.68 37,277 -
Totals 186,512 33.9% 33,984
NAICS code Industry description
2011 US
Employment
Percent of
Total
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Local
Requirements
Export
Employment
00 Total 113,425,965 509,410
Key (Largest) Industries
561 Administrative & support services 9,032,939 8.0% 48,998 9.6% 1.21 40,568 8,430
722 Food services & drinking places 9,691,577 8.5% 41,912 8.2% 0.96 43,526 -
622 Hospitals 5,672,028 5.0% 28,526 5.6% 1.12 25,474 3,052
551 Management of companies & enterprises 2,921,669 2.6% 27,774 5.5% 2.12 13,122 14,652
621 Ambulatory health care services 6,355,462 5.6% 25,248 5.0% 0.88 28,543 -
Totals 123,460 33.9% 26,135
Largest Industries (Employment) in Memphis MSA (2007)
Largest Industries (Employment) in Memphis MSA (2011)
This report utilizes an array of techniques in order to illustrate the health of the regional economy based on the existing industries, employment
levels in those industries and diversity of the “economic base” (industries that produce for export). Using the Economic Census, this analysis
identifies the industries which are part of the economic base, how these industries have grown over time, what the proportional share of total
employment is for these industries, the diversity of the economic base and the location quotient (proportion relative to national averages).This
type of analysis helps us to understand what the regional economic engines are and how they compare to national benchmarks, and allow for
conclusions to be drawn about the overall health of the economy.
Thefollowingchartsillustratethefivelargestindustries(basedonemploymentnumbers)intheMemphisMSAbetween2007and2011.Themost
significant (negative) change observed in this period is the loss of Professional, scientific, & technical services as one of the largest employers.
Administrative & support services continues to be the cornerstone of employment with almost 10% of all the regions jobs. Both Hospitals and
Managementofcompanies&enterprisescontinuetobelargeemployers,buthaveexperiencessomecontractionlocally,andarenotasstrongas
theywerein2007. Foodservices&drinkingplacesareshowingsignsofstresswithatransitionfromabasicindustry(specialization)toonewhich
has dipped below national averages and no longer produces export employment.
Of these Key Industries, the basic industries are Adminstrative & support services, Management of companies & enterprises and Hospitals.
MAAG CEDS
Economic Base Analysis
23. 23
Basic Industries
Basic Industries in Memphis MSA (2007)
Basic Industries in Memphis MSA (2011)
NAICS code Industry description
2007 US
Employment
Percent of
Total
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Local
Requirements
Export
Employment
Basic Industries
551 Management of companies & enterprises 3121402 2.6% 38,369 7.0% 2.70 14,225 24,144
484 Truck transportation 1476397 1.2% 16,245 3.0% 2.41 6,728 9,517
721 Accommodation 1907554 1.6% 17,877 3.3% 2.06 8,693 9,184
493 Warehousing & storage 679077 0.6% 11,530 2.1% 3.73 3,095 8,435
423 Durable goods merchant wholesalers 3395277 2.8% 20,714 3.8% 1.34 15,473 5,241
622 Ambulatory health care services 5477818 4.5% 29,865 5.4% 1.20 24,963 4,902
561 Administrative & support services 9628468 8.0% 48,137 8.8% 1.10 43,879 4,258
813 Religious/grantmaking/civic/professional & similar org 2816537 2.3% 16,057 2.9% 1.25 12,835 3,222
492 Couriers & messengers 569190 0.5% 5,672 1.0% 2.19 2,594 3,078
488 Support activities for transportation 610641 0.5% 5,802 1.1% 2.08 2,783 3,019
339 Miscellaneous manufacturing 680848 0.6% 5,076 0.9% 1.64 3,103 1,973
481 Air transportation 480648 0.4% 3,527 0.6% 1.61 2,190 1,336
325 Chemical manufacturing 793717 0.7% 4,577 0.8% 1.27 3,617 960
323 Printing and related support activities 631771 0.5% 3,704 0.7% 1.29 2,879 825
722 Food services & drinking places 9657310 8.0% 44,690 8.1% 1.02 44,010 680
812 Personal & laundry services 1380284 1.1% 6,786 1.2% 1.08 6,290 496
452 General merchandise stores 2897472 2.4% 13,669 2.5% 1.04 13,204 465
448 Clothing & clothing accessories stores 1648157 1.4% 7,880 1.4% 1.05 7,511 369
324 Petroleum and coal products manufacturing 103577 0.1% 761 0.1% 1.61 472 289
712 Museums, historical sites, & similar institutions 128539 0.1% 825 0.2% 1.41 586 239
447 Gasoline stations 888705 0.7% 4,188 0.8% 1.03 4,050 138
483 Water transportation 68947 0.1% 444 0.1% 1.41 314 130
322 Paper manufacturing 425096 0.4% 2,057 0.4% 1.06 1,937 120
711 Performing arts, spectator sports, & related industries 436072 0.4% 2,098 0.4% 1.06 1,987 111
521 Monetary authorities - central bank 20223 0.0% 153 0.0% 1.66 92 61
446 Health & personal care stores 1069187 0.9% 4,894 0.9% 1.00 4,872 22
Totals 315,597 57.4% 83,213
NAICS code Industry description
2011 US
Employment
Percent of
Total
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Local
Requirements
Export
Employment
Basic Industries
492 Couriers & messengers 526,762 0.5% 19,660 3.9% 8.31 2,366 17,294
551 Management of companies & enterprises 2,921,669 2.6% 27,774 5.5% 2.12 13,122 14,652
561 Administrative & support services 9,032,939 8.0% 48,998 9.6% 1.21 40,568 8,430
484 Truck transportation 1,332,250 1.2% 14,376 2.8% 2.40 5,983 8,393
493 Warehousing & storage 658,414 0.6% 10,919 2.1% 3.69 2,957 7,962
423 Ambulatory health care services 3,156,124 2.8% 19,491 3.8% 1.38 14,175 5,316
721 Accommodation 1,864,708 1.6% 13,363 2.6% 1.60 8,375 4,988
488 Support activities for transportation 583,637 0.5% 5,734 1.1% 2.19 2,621 3,113
622 Hospitals 5,672,028 5.0% 28,526 5.6% 1.12 25,474 3,052
813 Religious/grantmaking/civic/professional & similar org 2,707,377 2.4% 15,167 3.0% 1.25 12,159 3,008
339 Miscellaneous manufacturing 560,987 0.5% 5,157 1.0% 2.05 2,519 2,638
481 Air transportation 425,787 0.4% 4,213 0.8% 2.20 1,912 2,301
448 Clothing & clothing accessories stores 1,659,696 1.5% 8,543 1.7% 1.15 7,454 1,089
322 Paper manufacturing 363,014 0.3% 2,132 0.4% 1.31 1,630 502
325 Chemical manufacturing 725,288 0.6% 3,656 0.7% 1.12 3,257 399
324 Petroleum and coal products manufacturing 98,410 0.1% 770 0.2% 1.74 442 328
452 General merchandise stores 2,843,559 2.5% 13,018 2.6% 1.02 12,771 247
712 Museums, historical sites, & similar institutions 128,780 0.1% 745 0.1% 1.29 578 167
483 Water transportation 63,365 0.1% 421 0.1% 1.48 285 137
521 Monetary authorities - central bank 18,041 0.0% 83 0.0% 1.02 81 2
525 Funds, trusts, & other financial vehicles (part) 3,079 0.0% 14 0.0% 1.01 14 0
Totals 242,760 47.7% 84,017
While the Economic Base has become slightly less diverse since 2007, and has lost over 70,000 jobs it still comprises almost half of all local
employment. Also, while overall job numbers are down, the export employment numbers have actually increased slightly, this indicates that
the Memphis area’s basic industries are competing very well when compared to national counterparts in those industries. Despite this, the base
does not contain many skilled labor industries, so greater efforts will be needed if Memphis hopes to attract and retain talented professionals in
the future.
MAAG CEDS
Economic Base Analysis
27. 27
NAICS
code Industry description
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Export
Employment
Percent
Change
Industrial Mix
Component
Competitive
Component
Fastest Growing Industries
492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410
519 Other information services 69 0.0% 0.08 - 86.6% 88 -54
454 Nonstore retailers 1,658 0.3% 0.68 - 59.6% 127 553
336 Transportation equipment manufacturing 1,084 0.2% 0.20 - 45.5% -116 499
312 Beverage and tobacco product manufacturing 536 0.1% 0.81 - 41.1% -1 179
623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599
481 Air transportation 4,213 0.8% 2.20 2,301 19.5% -193 1,089
524 Insurance carriers & related activities 6,460 1.3% 0.65 - 15.4% 90 1,106
221 Utilities 412 0.1% 0.14 - 14.1% 31 41
611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48
NAICS
code Industry description
Memphis MSA
Employment
Percent of
Total
Location
Quotient
Export
Employment
Percent
Change
Industrial Mix
Component
Competitive
Component
Largest Industries
561 Administrative & support services 48,998 9.6% 1.21 8,430 1.8% -112 3,838
722 Food services & drinking places 41,912 8.2% 0.96 - -6.2% 2,818 -2,937
622 Hospitals 28,526 5.6% 1.12 3,052 -4.5% 2,836 -2,398
551 Management of companies & enterprises 27,774 5.5% 2.12 14,652 -27.6% -171 -8,140
621 Ambulatory health care services 25,248 5.0% 0.88 - 10.4% 3,479 257
492 Couriers & messengers 19,660 3.9% 8.31 17,294 246.6% -85 14,410
423 Durable goods merchant wholesalers 19,491 3.8% 1.38 5,316 -5.9% -226 236
541 Professional, scientific, & technical services 17,331 3.4% 0.49 - -31.9% 737 -7,342
813 Religious/grantmaking/civic/professional & similar org 15,167 3.0% 1.25 3,008 -5.5% 333 -268
484 Truck transportation 14,376 2.8% 2.40 8,393 -11.5% -619 -283
721 Accommodation 13,363 2.6% 1.60 4,988 -25.3% 662 -4,112
238 Specialty trade contractors 13,313 2.6% 0.91 - -25.8% -4,095 533
424 Nondurable goods merchant wholesalers 13,028 2.6% 1.35 3,349 -7.5% 378 -589
452 General merchandise stores 13,018 2.6% 1.02 247 -4.8% 559 -397
623 Nursing & residential care facilities 11,554 2.3% 0.79 - 23.9% 1,187 1,599
611 Educational services 11,278 2.2% 0.74 - 11.9% 1,750 48
Industry Targeting Analysis
Current Strengths
The industries listed as“current strengths”in the previous table were obtained by isolating the basic industries (location quotient > 1) with both
positive percent change in employment and a positive competitive component. Several of the“fastest growing industries”listed below are not
listed in the “current strengths”industries because they are yet to reach the distinction of being basic industries. Many of these industries are
instead listed in the“emerging strengths”field.
Emerging Strengths
The industries listed as “emerging strengths” in the previous table were identified due to their significant growth and positive competitive
component despite not yet achieving the status of being local specializations.
The tables below illustrate the fastest growing and largest industries in the Memphis MSA region.
Of the largest industries, most of them are part of the base or they are growing towards becoming basic industries. Two critical areas are the
significant decline in the Food Services & drinking places and Professional, scientific & technical services industries. These two industries have
limited prospects, but are needed to nurture sustainable economic development going forward. Significant efforts will be needed to turn these
industriesaround,especiallywithregardtothelargenumbersofjobslostintheProfessional,scientific,&technicalservicesindustry. Additionally,
reliance on low-skilled labor is a weakness of the economic base because one plant or factory closure could create significant changes to the local
economy.
MAAG CEDS
Economic Base Analysis
28. 28
MAAG CEDS
Work Plan
ECONOMIC AND COMMUNITY DEVELOPMENT
This work program is organized around economic and community development with
emphasis on small business and industrial development in a six-county region. To carry
out this effort, MAAG provides staff assistance to the region’s communities in planning and
facilitating economic and community development projects.
GrantWriting and Administration
Under the supervision of the executive director, a two member staff will work with state
andfederalagenciesthroughouttheyeartopreparegrant/loanproposalsforinfrastructure
improvement projects for member governments. Projects may include those such as
water treatment facilities, water line extensions, industrial park improvements, rural
fire protection, and city parks. State and federal agencies include but are not limited to
the Economic Development Administration, Rural Development Administration, Delta
Regional Authority, TN Department of Economic and Community Development, and the
TN Department of Environmental Conservation. Efforts to obtain grant/loan funds for
infrastructureprojectswillbemadethroughouttheyear.Staffwillworkwithcommunities
who express specific needs and will meet with local officials, gather data, attend public
hearings, and provide necessary resolutions and notices in order to develop these projects
further. Staff will also work with member governments to administer approved projects.
Comprehensive Economic Development Strategy (CEDS)
As the federally designated Economic Development District, MAAG is responsible for
developingandimplementingtheregion’sComprehensiveEconomicDevelopmentStrategy
(CEDS). The CEDS analyzes our regional economy and serves as a guide for establishing
regional goals and objectives, developing and implementing a regional plan of action, and
identifying investment priorities and funding sources. MAAG staff will work closely with
the MAAG Board of Directors, the MAAG CEDS Committee and community leaders from the
publicandprivatesectorasaguideinthiseffort. AnewCEDSwasdevelopedlastyearand
will be updated this year.
Data Collection
MAAG recognizes the region’s need for maintaining relevant demographic information and
using it in the economic and community development planning process. Throughout the
year, staff will collect, analyze, and disseminate statistical and demographic information
for the region. This information will be used in the development of proposals, special
projects, and to guide the development of the CEDS.
MAAG will continue to monitor and provide information to the Economic Development
Administration’s economic development representative on area plant closings and the
number of employees affected. These efforts should help MAAG maintain accurate and
timely updates of the region’s CEDS.
HISTORIC PRESERVATION
InFY2013,MAAGappliedtotheTennesseeHistoricalCommissionforaFederalPreservation
Grant. The purpose of the grant is to allow MAAG to become involved in Historical
Preservation within the Greater Memphis region. However, due to federal sequestration,
the funds are not expected to be released until late summer/early fall 2013. Planned
activities for the funds include preservation planning studies for towns, neighborhoods,
and historic districts, the preparation of nominations to the National Register of Historic
Places, planning or pre-development work necessary to undertake restoration of an
historic property, and restoration of historic properties. Other activities may include
conducting architectural, archaeological, and historic site surveys to identify and record
historic districts, sites, buildings, structures, and objects significant toTennessee’s history.
HOUSING
It is the intent of MAAG to serve as a resource to improve, promote and support
economicgrowthinthecommunitiesweserve. Crucialtoeconomicdevelopment
istheaccessforverylow-andlow-incomepersonstoaffordable,qualityhousing.
To promote planning and economic development of the region, MAAG provides
housing services to local governments, not-for-profit entities and individuals.
MAAG will work with the THDA and USDA Rural Development to identify,
administer and promote housing programs throughout the region.
Homebuyer Education
MAAG staff has completed the NeighborWorks® America Training the Trainer
pre-purchase homebuyer education course and received certification by
NeighborWorks® America. In FY2014, MAAG plans to obtain certification by
THDA to be an approved homebuyer education provider in MAAG’s fourTennessee
counties. Threeofthecounties,Fayette,LauderdaleandTiptonCounties,currently
do not have a single homebuyer education provider offering courses within the
county – all residents of the counties must drive to Memphis or Brownsville, TN
to complete the course. To remedy this, MAAG will offer homebuyer education
courses on a monthly basis, with each county hosting one class each quarter.
Technical Assistance/Customer Service
MAAG staff will provide technical assistance and customer service to local
governments and not-for-profit entities and will make referrals to area residents
looking for housing assistance. MAAG staff will also provide assistance to local
governments and not-for-profit entities to take advantage of housing programs
offered by THDA, Rural Development Administration and Housing and Urban
Development. Assistance will be provided in areas of project development, grant
writing, and project administration.
Outreach
Throughout the year, MAAG will promote existing housing programs offered
by MAAG, THDA, and other government agencies and not-for-profit entities.
Promotion of housing programs includes developing and obtaining promotional
materials, making presentations about housing programs to local governments
and community leaders, making information about MAAG and THDA housing
programs available on the MAAG website, and presenting and participating in
local and regional housing conferences and tradeshows.
Emergency Repair Program
MAAG will continue to administer the Emergency Repair Program (ERP) forTHDA.
TheERPprovidesgrantstolowincomeseniorhomeownerstorepairorreplacean
essentialsystemand/oracriticalstructuralproblem.MAAGstaffwillpartnerwith
local not-for-profit entities and local governments to identify homeowners and
make essential repairs to make the home livable.
USDA 502 Direct Loan Program
MAAGstaffrecentlyreceivedcertificationtobecomealoanpackagerfortheUSDA
Rural Development 502 Direct Loan program. This program provides up to 100%
financingforvery-lowandlow-incomeruralresidentstopurchaseahome. MAAG
staff will work with REALTORS® to promote this program throughout the region.
29. 29
MAAG CEDS
Work Plan
RURAL TOURISM
In 2011, MAAG received the regional tourism organization designation grant from the
Tennessee Department ofTourist Development (TDTD) for the Greater Memphis region
that includes Fayette, Lauderdale, Shelby and Tipton counties in Tennessee. The MAAG
Tourism Advisory Board (TAB) has developed a tourism generating promotion called
DayTrippin’to brand the increased focus on rural tourism in the region. The DayTrippin’
campaign has received two prestigious awards – an International Communicators’
AwardandaTellyAward–whichhavegarnerednationalattention.MAAGwillcontinue
to promote the Day Trippin’campaign throughout FY2014. Additionally, counties may
submit requests for mini-grants allocated through the TDTD grant to promote specific
projects and/or events in their communities. Requests are submitted to MAAG and
reviewed for approval based on set guidelines. Each project that is allocated funding
will be monitored throughout the year by MAAG staff.
SMALL BUSINESS FINANCING
MAAG will continue to promote job creation by assisting area small businesses in
acquiring financing through, among others, the EDA Revolving Loan Program and the
Rural Development Agency Intermediary Relending Program. MAAG will maintain staff
that is experienced in the review, packaging, administration and/or referral of the most
appropriate loan programs to best meet the needs of interested businesses.
MAAGstaffwillstrivetoimproveuponthecurrentyear’sefforts,indoingsowillmaintain
close contact with area chambers of commerce and banks so that those organizations
will be more aware of our efforts and the availability of alternative financing options.
Efforts will be made to meet with and update the MAAG Loan Committee on a regular
basis. MAAG staff will actively pursue opportunities to address civic groups and
organizations so as to extend the knowledge and understanding and availability of the
Revolving Loan Fund program and the RDA Intermediary Relending Program.
EDA Revolving Loan Fund (RLF)
The RLF is a funding source for small businesses that was established by the Economic
Development Administration to create access to capital by start-up and ongoing
businesses that are viable, but do not currently meet commercial lending standards.
Theloansemanatingfromthissourceassistsmallbusinessesinneedofworkingcapital
and startup expenses and encourage innovative and entrepreneurial efforts from the
community.
RDA Intermediary Relending Plan (IRP)
The IRP performs the same function and requirements as the RLF with the exception
that the IRP is specifically targeted to small businesses in the designated rural areas,
and this program is sponsored by the U. S. Department of Agriculture. Uses of this IRP
capitalincludeworkingcapitalandstartupexpensesthatencouragetheinnovationand
entrepreneurialspiritandactivitythatisthegenesisofstrongeconomies. Thisisanew
program for MAAG. The MAAG staff looks forward to being proactive in promoting the
program and being the lender of the program for Fayette, Tipton, Lauderdale counties
inTN and portions of Shelby County,TN.
RURAL PLANNING
I-269 Planning
The planning staff of MAAG is participating in the economic development and
environmental planning of the I-269 Corridor in Fayette and Shelby counties in
TN. The I-269 Corridor is currently the only planned urban loop off of the I-69
“NAFTA” Highway. The 1,790 mile long I-69 highway will connect Port Huron,
Michigan and Laredo, Texas and will provide a direct link from Monterrey,
Mexico to Toronto, Canada. The Shelby County portion of the I-269 loop extends
approximately 35 miles in length and approximately 2,000 feet in width. MAAG
staff will be instrumental in the planning process which will provide a great
opportunity to consider effective economic, social, community, environmental,
and transportation planning for the region for the 21st century.
Community Planning
MAAGstaffwillcontinuetoserveastheplannersforatthreecommunitiesinfiscal
year 2014. These three communities are Gallaway, Henning and Somerville, TN.
MAAG will act as the community planning staff for these three jurisdictions and
the activities will include, land use planning, transportation planning, economic
development planning, environmental planning, geographic information
planning, as well as zoning and subdivision issues. Close contact and working
relationships with local officials and communities will be essential to assure that
plans are accepted and implemented by the local communities.
In addition to theTennessee counties mentioned, MAAG will be actively assisting
some of the communities in Crittenden County, Arkansas in their community
planning needs. The planning areas will be the same as above. MAAG currently
participates in the West Memphis Metropolitan Planning Organization for
transportation planning activities and hopes to expand participation and
assistance to the Crittenden County communities through community planning.
Rural Planning Organization
MAAG will continue to serve as theWestTennessee Rural Planning Organization.
The Rural Planning Organization is theTennessee Department ofTransportation’s
local presence in the rural communities to facilitate transportation planning
and to coordinate those plans with surrounding communities and the state.
MAAG will bring rural community officials together periodically to assess their
transportation needs and then design plans to accomplish those needs.
SolidWaste
MAAGwillbethedistrictofficeforShelby,Fayette,Tipton,andLauderdalecounties
to coordinate the Tennessee Department of Environmental and Conservation
Department’srulesandregulationsregardingsolidwaste. MAAGwillworkclosely
with its four counties and their Solid Waste Boards to coordinate requirements
andpolicybetweenthestateandthelocalgovernments. Atthesametime,MAAG
will assist the local jurisdictions in designing and implementing their SolidWaste
Plans to assure their effectiveness and compliance.
Tennessee Advisory Commission on Intergovernmental Relations (TACIR)
The General Assembly, through the Public Infrastructure Needs Inventory Act,
has directed that the Tennessee Advisory Commission on Intergovernmental
Relations (TACIR) shall annually compile and maintain an inventory of needed
public infrastructure within the state. On a county-by county basis, the following
categories of infrastructure will be inventoried: transportation (roads, bridges,
airports,etc.);waterandwastewater;industrialsites;municipalsolidwaste;K-12
facilities; recreation; low and moderate income housing; telecommunications;
public health buildings; public buildings; and other public facilities as deemed
necessary by theTACIR.
