1. Collar Counties Business & Industry Cluster Analysis and Recommendations for the Oshkosh Area June 27, 2013 Oshkosh

2. Project Goals Economic Development Strategy and Detailed Action Plan to: further develop business and industry clusters in Oshkosh, Winnebago County and the Northeast Wisconsin region increase private investment ( and associated tax base) increase regional business interrelationships (and associated supplier network contracting and growth) enhance job retention success (and associated capital investment) increase job creation (and associated payroll growth) increase local consumer spending

3. Project Summary Data Collection/Modeling Interviews and Surveys Analysis Strategy Development and Action Plans Preparation and Presentation of Final Report

4. Primary Planning Area Oshkosh Drive Times (10, 20, 30 and 45 minute travel zones)

5. Collar Counties 8 County Regional Analysis Area

6. Economic Importance by Sector CurrentSectorProjected 1Manufacturing1 2Education3 3Health Care2 4Tourism5 5Information Technology4 6Professional, Scientific & Technical7 7Retail6 8Management Administration8

7. Interview and Online Survey Results Economic Development Focus Local economic development efforts and resources should be focused to: Composite Score Retain existing businesses in the area387 Expand existing businesses in the area331 Increase creation of new business start-ups in the area271 Attract existing businesses from outside of the County to locate in the area222

8. Interview and Online Survey Results Rank the most important when measuring economic growth over the next 5-10 years: RankEconomic PrioritiesComposite Score 1Total jobs254 2High wage jobs207 3Tax base188 4Investment179 5Number of new businesses 153 6Number of total companies 145 7Total exports56

9. Winnebago County Industry Profiles (ranked by age concentrations) Manufacturing Total Emp.24,214% of Total Emp.27.3% of Payroll35.8 Public Administration 3,688 4.2 3.8 Education and Health 17,84520.218.7 Financial 3,488 3.9 4.0 Professional and Business Services Total Emp. 9,825% of Total Emp.11.1% of Payroll15.3 Trade, Transportation and Utilities 13,91215.711.6 Information Total Emp. 1,524% of Total Emp. 1.7% of Payroll 2.1 Construction 3,395 3.8 4.4 Leisure and Hospitality 6,610 7.5 2.0 U.S Department of Commerce, Census Bureau

10. Total Employment Change 2010-2040 (in thousands) 60.1 5.983.5 1.2 1.9 30.4 10.1 13.8 Source: Woods and Poole 2012 State Profile; Wisconsin Counties

11. Income Rank (2010 per capita) 23 159 66 1317 30 22 Source: Woods and Poole 2012 State Profile; Wisconsin Counties

12. Income Rank (2040 per capita) 17 39 56 16 70 32 34 22 Source: Woods and Poole 2012 State Profile; Wisconsin Counties

13. Strategies Summary

14. Project Deliverable Layers This project report document and Strategy Recommendations include four layers including Concept Visuals (in the form of bubble diagrams), formatted description and explanation of Recommendations, Data and Research Summaries and Detailed Data and Spreadsheets. Interview and survey results and comments are included in the Data and Research Summaries. Detailed source data and spreadsheets are not included within the project report document. 1 Concept Visuals 2 Recommendations 3 Data and Research Summaries 4 Detailed Data and Spreadsheets

15. Strategies Summary

16. 4490 Fund - IT Focus Data Center New North IT Accelerator Gener8tor/ UWO ORIGIN IT Accelerator Gener8tor/ UWO ORIGIN Wisconsin Security Research Consortium IT Users Group UWO IT Users Group UWO IT Cluster Base ImproMed; Dealer Fire; Yahoo Call Center; Oracular; CMS; Accu-com; Plexus; Bedrock; US Bank; Miles Kimball; Derksen & Sons; Spectrum; East Bay; and others IT Cluster Base ImproMed; Dealer Fire; Yahoo Call Center; Oracular; CMS; Accu-com; Plexus; Bedrock; US Bank; Miles Kimball; Derksen & Sons; Spectrum; East Bay; and others Angels on the Water – Start up funds IT Cluster IT Base IT Opportunity

17. IT Firms in Oshkosh Source: Wisconsin Dept of Workforce Development

18. Regional Information Employment Number and Percentage by County (2010/2035) 2010 – 570 7% 2035 - 490 5% 2010 – 2,330 28% 2035 – 2,910 31% 2010 – 2,320 28% 2035 – 2,270 24% 2010 - 50 1% 2035 - 50 1% 2010 – 1,760 21% 2035 – 2,490 26% 2010 – 180 2% 2035 – 230 2% 2010 - 80 1% 2035 - 80 1% 2010 - 1,000 12% 2035 - 990 10% Source: Woods and Poole 2012 State Profile; Wisconsin Counties

19. Key IT Trends From: Functionality Bottom-line Efficiencies Transactions Connection points Facts and Figures Selling To: Analytics Top Line Growth Relationships Data Assets Visualization of Context Co-creation of Solutions

20. IT Recommendations Tactic 1A: Position Oshkosh/Winnebago County as a growing hot spot for IT businesses and startups and a competitive location for IT related businesses in the region Tactic 1B: Facilitate networking of existing IT businesses and professionals to promote peer relationships and additional growth in their businesses Tactic 1C: Foster networking of IT technical professionals and IT related companies – resurrect the IT users group formed in 2008 as part of the New North capacity building initiative Tactic 1D: Establish and facilitate industry peer groups in emerging industry areas including software, gaming and mobile applications

21. IT Recommendations Tactic 1E: Create an IT accelerator to incubate new and growing start-ups in emerging industry areas including software, gaming and mobile applications Tactic 1F: Create value proposition and focused effort to attract the location of a major data center to the Oshkosh/Winnebago area Tactic 1G: Establish ongoing working relationships with angel and venture capital organizations to attract and secure financing sources for new and growing IT businesses

22. Manufacturing Cluster – Oshkosh/Winnebago County Foreign Direct Investment Supply Chain Integration Supply Chain Integration NEW ERA Cooperative Engineering Programs Professional, Scientific and Technical Services to Manufacturing Sector Expande d Exports WMEP WEDC UWO Expande d Exports WMEP WEDC UWO Oshkosh Corporation; KC; Bemis; Plexus; Jay; Triangle; Nercon; Menasha Corp.; Shallbetter; Hoffmaster; Banta; Milprint; JJ Keller; Baldor; Axeltech; Perfecseal; and others Paper Products Converted Paper Printing Plastics/ Rubber Machinery Transportation Metal Fabrication Paper Products Converted Paper Printing Plastics/ Rubber Machinery Transportation Metal Fabrication Supply Chain Workforce Training Manufacturing Culture Supply Chain Workforce Training Manufacturing Culture Sustainability Viessmann Group Mfg Base Mfg Opportunity

23. Metropolitan Areas by Degree of Manufacturing Specialization, 2010 Note: Metropolitan areas colored gray are not specialized in manufacturing, green are strongly specialized, blue are very strongly specialized, and red are highly specialized. Source: Brookings Institution

24. Manufacturing Concentrations Geographic Area% of Jobs in 2000% of Jobs in 2010% of Jobs in 2020 United States10.737.055.97 Great Lakes Region15.3710.248.79 Wisconsin17.7513.4311.90 Appleton, Oshkosh, Neenah CSA 23.8119.4818.60 Oshkosh/Winnebago County 28.6924.4324.12 Woods and Poole, 2012

25. Regional Manufacturing Employment as a % of total County employment- 2010 17.813.8 16.0 12.1 10.6 14.8 24.4 16.6 Source: Woods and Poole 2012 State Profile – Wisconsin Counties

26. U.S. Manufacturing Employment (Gains & Losses by Industry – 2000–2010) Gains Automotive 6,000 Paper & Printing 13,000 Metals & Minerals 21,000 Machinery 50,000 Transportation Eq. 95,000 Losses Computers & Electronics - 407,000 Textiles & Apparel - 284,000 Chemicals, Plastics - 84,000 Food & Beverage - 18,000 Wood & Furniture - 9,000 Source: Bureau of Economics Analysis; McKinsey Global Institute

27. Global Trends Affecting Manufacturing High volatility and uncertainty Changing global patterns of demand Consumption in developing countries to grow from $12 trillion in 2010 to $30 trillion in 2025; By 2025, developing countries could account for 70% of global demand for manufactured goods Rising input costs (rising wages in low cost areas) Source: McKinsey Global Institute

28. Global Trends Affecting Manufacturing Talent shortages (engineering, design, automated production, customer support) Productivity gains through robotics and automation New technologies (demand for value-added services in a timely and effective manner) Innovation (growing number of SKUs to meet customer preferences and applications) Advanced materials development Need for communication and efficient management of resources Government policies that encourage or discourage investment Source: McKinsey Global Institute

29. Manufacturing Recommendations Tactic 1A: Strengthen Regional Support for and Implementation of Advanced Manufacturing Growth Tactic 1B: Expand export activities of local manufacturers Tactic 1C: Establish working relationships with existing and potential Foreign Direct Investment partners in the region Tactic 1D: Establish Regional Supply Chain Council to address current relationships and potential opportunities to further integrate the regional supply chain

30. Manufacturing Recommendations Tactic 1E: Establish Regional Association of Professional, Scientific and Technical Service providers to address current and evolving opportunities to serve the regional and national market Tactic 1F: NEW ERA – Cooperative Engineering Programs Tactic 1G: Pursue Development of Regional Sustainability Council

31. Second Stage Companies - Oshkosh/Winnebago County Growth of customer base Market expansion Exports focus and resources Growth of customer base Market expansion Exports focus and resources Wisconsin Companies to Watch Awards Production, fulfillment, distribution and business organization Growth Management Academy Skilled and Experienced Management UWO Management Programs SBDC Business Success Center Success UWO Management Programs SBDC Business Success Center Success Second Stage Businesses - - Companies with 10 – 100 employees: Manufacturing (150+) Professional, Scientific & Technical (50) Information (15) Second Stage Businesses - - Companies with 10 – 100 employees: Manufacturing (150+) Professional, Scientific & Technical (50) Information (15) Educational resources Mentoring capabilities Investment capacity Educational resources Mentoring capabilities Investment capacity Workforce Training programs Growth of markets Workforce Training programs Growth of markets Second Stage Co. Base Second Stage Co. Opportunity

32. Second Stage Growth Companies Second Stage Cluster Strategies recognize an existing concentration of growing businesses between 10 and 100 employees Recommended strategies emphasize focus on further developing this cluster through actions that will: Assist in the expansion of existing growth firms across industry types Expand the supply of a trained and skilled workforce that meets needs of group Deliver local, regional and statewide resources that serve to accelerate the learning curve and rate of growth for companies Identify opportunities to match operational and management needs with regional expertise to accelerate growth Recognize the efforts and accomplishments of Second Stage growth companies at the State and local level

33. Winnebago County Manufacturing Firms By Stage of Growth YearTotal Number of Companies Total Number of Stage 1 Companies (1-9 employees) Total Number of Stage 2 Companies (10-99 employees) Total Number of Mid. Market Firms (100 – 1000+ empl) 2007316103 157 56 2008314104 153 57 2009310107 159 44 2010305107 157 41 Source: U.S. Census Bureau – County Business Patterns 2012

34. Winnebago County Information Firms By Stage of Growth YearTotal Number of Companies Total Number of Stage 1 Companies (1-9 employees) Total Number of Stage 2 Companies (10-99 employees) Total Number of Mid. Market Firms (100 – 1000+ emp.) 20075335 15 3 20084834 13 1 20094630 13 3 20104728 15 4 Source: U.S. Census Bureau – County Business Patterns 2012

35. Winnebago County Professional and Technical Firms By Stage of Growth YearTotal Number of Companies Total Number of Stage 1 Companies (1-9 employees) Total Number of Stage 2 Companies (10-99 employees) Total Number of Mid. Market Firms (100 – 1000+ emp.) 2007265206 57 2 2008258203 54 1 2009248191 56 1 2010250198 50 2 Source: U.S. Census Bureau – County Business Patterns 2012

36. Second Stage Recommendations Tactic 1A: Identify Second Stage growth companies in the areas of manufacturing, information, and professional, scientific and technical services Tactic 1B: Explore potential of Regional Stage 2 Program. Combine education and training, facilities and equipment for new product development, and a community-based mentoring program with local and regional partners. Partners can assist and accelerate commercialization and growth for these high potential companies in the region Tactic 1C: Develop Suite of Services for Second Stage Companies

37. Second Stage Recommendations Tactic 1D: Develop Growth Management Academy for Second Stage Companies Tactic 1E: Collaborate with Sponsors of Wisconsin Companies to Watch awards program Tactic 1F: Research and Develop Relationships with Private Equity Investor Groups

38. Aviation Cluster – Oshkosh/Winnebago County North American Production FDI Defense Dept. Regional Supply Chain North American Production FDI Defense Dept. Regional Supply Chain New Aviation Products - Materials - Software New Aviation Products - Materials - Software Further Develop EAA and Oshkosh Brand New Aviation Services Facilitate Aviation Focused Investors Aviation Cluster Base EAA, Air Show; AirVenture Museum; Basler, Sonex, Spanbauer, Aero Innovate, Wittman Field and FBOs Aviation Cluster Base EAA, Air Show; AirVenture Museum; Basler, Sonex, Spanbauer, Aero Innovate, Wittman Field and FBOs Aviation Asset Base: Global brand recognition of EAA Spanbauer/Training Programs Skilled Labor and Management Base Aviation Asset Base: Global brand recognition of EAA Spanbauer/Training Programs Skilled Labor and Management Base Aviation Base Aviation Opportunity

39. Aviation Cluster Aviation Cluster Strategies recognize existing concentrations of Aviation business activity and events that create brand recognition for Oshkosh Recommended strategies emphasize focus on further developing this cluster through actions that will: Strengthen Oshkosh and EAA as a thought leader in general aviation Attract prospective companies and aviation based entrepreneurship to the area Expand and retain trained and skilled workforce in the area Assist in the expansion of existing manufacturing, service and membership businesses Identify additional market opportunities for the development of new aviation products and services Reinforce the image and recognition of Oshkosh as a general aviation destination and gathering point within the State of Wisconsin and the U.S.

40. Aviation Recommendations Tactic 1A: Continue and expand the current initiatives to establish Oshkosh as a Center of Influence in the Aviation industry Tactic 1B: Facilitate meetings and ongoing dialogue among aviation focused investors in the identification, discussion and due diligence of new products and services Tactic 1C: Explore potential aviation related production opportunities that leverage the intersection and concentration of the local aviation and manufacturing clusters Tactic 1D: Research international aviation products companies that may have an interest in expanding production in North America Tactic 1E: Establish partnerships with UW Madison – Advanced Materials Industrial Consortium to identify relevant research and regional manufacturing opportunities incorporating composites and other advanced materials

41. Recruit Skilled Talent Strategy Middle and Senior Management Entrepreneurs Top Level University Graduates in Design, IT, Engineering Skilled operators and production workers Regional companies that attract national and international talent Presence of broad range of regional employment opportunities Regional companies that attract national and international talent Presence of broad range of regional employment opportunities Talent Recruitment Base Talent Recruitment Opportunity Trailing Partner Dynamic

42. Retain High Skill Talent Strategy Recommendations Increase mentoring activity Retain and develop Serial Entrepreneurs Enhance Placement with regional companies Increase Community involvement Propel Increase Community involvement Propel Existing base of highly skilled talent Expanding metropolitan area Expanding regional employment base Range of regional community, employment, housing and educational options Existing base of highly skilled talent Expanding metropolitan area Expanding regional employment base Range of regional community, employment, housing and educational options Talent Base Talent Opportunity

43. Workforce Development Strategy FVTC Advanced Manufacturing UWO MBA Exec MBA/ PMBA K-12 exposure to manufacturing technologies FABLAB Partners in Education Partners at Learning Business and entrepreneurship Project Lead the Way K-12 exposure to manufacturing technologies FABLAB Partners in Education Partners at Learning Business and entrepreneurship Project Lead the Way Business Competitions Design Competitions Business Competitions Design Competitions Primary school system Secondary school system Public/Private Partnerships FVTC UWO NEW ERA Primary school system Secondary school system Public/Private Partnerships FVTC UWO NEW ERA Workforce Development Base Workforce Development Opportunity

44. Talent Development Continuum K-12 FVTC Fabrication Facility and Programs Product Development Competitions Post Secondary Business Clubs and Competitions UWO Student Incubation Entrepre - neurship Center for Innovation, Technology and Entrepreneurship (CITE) Regional Mentoring Network (UWO, business leaders, successful entrepreneurs ) Small Business Support UWO – SBDC – Business Success Center Placements Growth Companies Stage 2 Accelerator Program Product Development International Opportunities – Exports, Foreign Direct Investment Middle Market Product Development Process Improvement Workforce Training, Certification and Apprenticeship Advanced Manu- facturing Promotion of Smart Manufacturing Opportunities Workforce Training, Certification and Apprenticeship Manufacturing Cluster Support Conceptual Representation and Examples of System Parts

45. Talent and Workforce Recommendations Tactic 1A: Identify Key Talent Requirements in the Region Tactic 1B: Assist in the recruitment of an expanding pool of individuals with entrepreneurial and ownership interests, skills and experiences Tactic 1C: Inventory current concentrations of vital talent assets in the region Tactic 1D: Develop Public/Private Initiatives to Engage Skilled Talent in Regional Activities Tactic 1E: Map regional education/training and development continuum to help identify current resources, potential gaps and opportunities to improve transitions along the continuum Tactic 1F: Develop K-12/Business Partnerships that Include Promoting Hands-on Design, Innovation Development Activities, and Exposure to Careers in Technology

46. Talent and Workforce Recommendations Tactic 1G: Establish Regional Business Concept Competitions Tactic 1H: Explore Potential of UWO Student Business Incubator Tactic 1I: Explore potential of Entrepreneurial Companies Strategies – Tactics 1C and 1D as Parts of Development System Tactic 1J: Explore potential of Second Stage Companies Strategies – Tactics 1B, 1C and 1D; Manufacturing Cluster Strategies – Tactics 1A and 1B; and Middle Market Companies – Tactic 1B as key additions to Regional Workforce and Talent Development System

47. Moving Ahead Together Think and Track Globally: Plan and Act Locally Collaborate and Align Efforts Regionally: Implement at Local Level Act Collectively: Celebrate Progress and Wins Community-Wide

48. Strategies Summary