What will the election of _______ mean for economic developers? 1)Continued significant reduction in federal budgets 2)Focus on private sector oriented approaches vs. direct government subsidy 3)Shorter term Congressional approvals for critical programs 4)Potential reorganization of key government agencies involved in economic and community development
Engaging Communities for Economic Development Major (and long term) Economic and Demographic Shifts Impacting Community and Economic Development Ten Focused Strategies to keep your Community Competitive in Economic Development
Major (and long term) Economic and Demographic Shifts Impacting Community and Economic Development Economy Structural Change Government Fiscal Issues Workforce Older Workforce Younger Workforce Workers Traveling Further Technology Changing Business Models Wired Economic Development
We are not replacing jobs lost through the recession
The recovery from this recession is taking longer than prior recessions
Property Taxes based upon Valuation Sales Taxes based upon Sales Revenue Income Taxes based upon Wages Property Taxes based upon Property Values Fees and Transfer Payments from other sources Distress on city / county budgets as the recession ripples through the economy
Public sector employment has declined through the recession after years of growth
Major programs at the federal and state levels have experienced major cuts.
We are not replacing our retiring workers with our new workers Over the next twenty years there will be 76 million Baby Boomers old enough to retire… ….but only 48 million new workers will be available in the talent pipeline to fill their positions.
What percent of people have ever had a tattoo or body piercing? Over 40: 10% Under 40: 40%
Employers have significantly increased their use of part time workers.
Education continues to define unemployment rates.
DaytonMontgomery County 2002201020022010 Travel less than 10 miles66.20%60.50% 54.20% Travel 10 to 24 miles19.50%22.30%22.60%23.90% Travel 24 to 50 Miles7.90%8.70%8.80%9.70% Travel Over 50 Miles6.30%8.60%8.10%12.20% Out of necessity, workers are more mobile --- they will travel further for a job
5. The Internet = Speed, democratization of information
6. Technology: Impact on Manufacturing, Service, Distribution
52 percent of all small businesses are home based and 78.5 percent employ only the sole proprietor. Of the 21.5 percent that do employ anyone, only 10.7 percent of that group will employ more than 20 people. There are 331,000 self-employed workers in Ohio, making up 6.00% of the total workforce, up by 5.00% from 2001. The Average Wage of a self-employed worker in Ohio is $25,331. The 1099 Economy is becoming a more important part of your community
In 2010, there were about 28 million small businesses in this country, responsible for 49.2 percent of private sector employment. But there were also 18,500 firms with 500 employees or more, defined as big business, and they employed the other 50 percent or so. Entrepreneurship: More small businesses…working for big business
“Politicians and senior regulators consistently and publically profess the value and importance of community banks to our economy, yet their recent actions suggest otherwise… The flood of new regulation, demands for more capital, harsh enforcement plus an unexplained three-year-old de facto moratorium on de novo bank charters lead one to believe that Washington really wants fewer community banks.” The American Banker, October, 2012 Bank restructuring will continue to limit financing options
There is a significant consolidation of banking institutions
The number of community banks has declined significantly
And the Data Shows…. Total Projects: 93 (47 Expansion, 46 New) Average Jobs: 181 High Jobs Number: 900 Average Square Feet: 157,000 Average New Jobs: 256 Average New Square Feet: 203,000 Big Deals: 1 Project; 1,500 jobs, Mfg. 1M SF Source: Site Selection Magazine, May 2012 Death of the Big Deal in Economic Development
And the Data Shows…. Even in Attraction….workforce & infrastructure rank higher than incentives What Matters Most: Site Selectors Most Important Criteria 1.State and Local Tax Structure 2.Transportation & Utility Infrastructure 3.Land/Building Prices & Supply 4.Ease of Permitting and Regulatory Process 5.Workforce Skills 6.Local economic development strategy 7.Legal Climate 8.Availability of Incentives 9.State Economic Development Strategy
The need to develop a strategy is NOT changing The need to develop strong partnerships is NOT changing The need to provide quality services is NOT changing The need to tailor your ED tools to the needs of your community is NOT changing What’s NOT Changing?
1. Think “Strategic Doing” vs. “Strategic Planning” Network of Networks Plan; Then Do, Then Plan Again Go from planning to implementation Know your goals and focus your efforts Engage the Community and the Networks Ed Morrison, Purdue University What’s happening at EDA with their CEDS
2. Understand the ROI of your Economic Development Program Cost / Benefit analysis for community investment of time and resources Economic Development E > P Fiscal Impact Analysis EDA Triple Bottom Line: Equity, Environment, Economy Political justification Understand…and take…informed risk
3. Collaboration is the New Competition Companies are looking for your ability to bring a wide variety of resources to the table Regional collaboration: What is your community’s role in the region? Expand your partnership to include workforce, land use, transportation, philanthropic, hospitals, permitting
4. Make your collaborations effective Look for the key development Levers that help move projects forward: – Transportation, Land Use, Regulation Understand who does what best Share back office resources to focus on the delivery of services
5. Place Matters: Enhance what makes your community livable Identify and leverage your strongest assets Richard Florida: The Creative Class ? What makes your community special? Asset mapping on a local AND regional basis Tactical urbanism
6. Double Down on Retention and Expansion Sometimes the best R & E does not involve incentives but simply helps solve problems Understand your business community and what helps it grow Organized R & E program to track activity and performance Don’t promise what you can’t deliver R & E is still the Best Attraction Strategy Cluster Strategy, Supply Chain, Key Partners
7. Expand workforce collaborations to include K-12 and Community Colleges Realign workforce programs to focus on two key priorities: Job Readiness training as a public priority Specific skill training in direct partnership with employers Engage employers more directly: Train for their job openings and for their future needs
8. Emphasize the Entrepreneurial Strategy that fits your community Small Business Economic Gardening 1099 Economy Incubation and Acceleration
9. Fine tune your financing and incentive toolkit Use state incentives strategically Create local incentives that make sense for your community Provide for transparency and accountability The fewer the programs, the easier the deal Stronger reliance on local financing and federal programs
10. Fine Tune your web presence and social networking 90% of the research by a site selection company is done BEFORE you are contacted Keep your inventory of sites up to date Have a user friendly website Link your site with your regional economic development partner Easily accessible public services
Key Questions Where are you, where do you want to be, how do you get there How well do you know your community? Have you established priorities, goals, tasks, with assigned leads? Do you have a toolbox that is appropriate to your community and priorities? Do you have a way of measuring performance and reacting? Key Questions and Next Steps