Bo Beaulieu & Michael Wilcox October 29, 2014 Transforming Your Local & Regional Economy Perry County & Its Region

Special Thanks Economic Development Administration, Chicago Regional Office Kim Howard, Southwest ISBDC Perry County Development Corporation Our Purdue Extension Colleagues

Our Focus Today Examine the economic resources and opportunities that exist in your county/region (but are often overlooked) o The stages of your local establishments o Regional competitive assets Highlight entrepreneurship as an important aspect of your economic development strategies. Identify ways you can cultivate entrepreneurship in your county & region

Something to Ponder The research on job creation has frequently found that most jobs are created from existing employers, yet many local economic development organizations continue to emphasize new industry recruitment. Daniel Davis The Federal Reserve Bank of St. Louis. May 2011

ESTABLISHMENTS IN PERRY COUNTY

6 ​ Source: National Establishment Time Series (NETS) – 2011 Database An establishment is a physical business location. Branches, standalones and headquarters are all considered types of establishments. Definition of Company Stages Self- employed 2-9 employees employees employees 500+ employees National Establishment Time Series, 2012

2012 Establishments in Perry County, Indiana EstablishmentsProportion of Total Total % Stage % Stage % Stage % Stage 4 * * Employment Total 6, % Stage 1 2, % Stage 2 2, % Stage 3 1, % Stage 4 * * Sales ($) Total 595,270, % Stage 1 161,337, % Stage 2 211,595, % Stage 3 222,337, % Stage 4 * * * According to NETS, Perry County does not have a Stage 4 (500+) establishment, but Reference USA says that Waupaca Foundry Inc. is the major employer with 700 jobs * IN DWD also says that Waupaca Foundry Inc. is the major employer in Perry County

THE REGION’S COMMUTE SHED AND LABOR SHED

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VariableCount, 2011% Share Employed in Perry County5, Employed in county but living outside2, Employed and living in county3, Living in Perry County9, Living in county but employed outside6, Living and employed in county3, Perry County is mostly a resident county and not an employment center given that a larger number of workers are commuting out of Perry County to work than are coming into the county for work purposes. Net commuting (In- commuters minus out- commuters) is negative in the county with a loss of 3,674 commuters. Perry County residents are commuting to surrounding counties in Indiana and Kentucky for purposes of securing work. A large number of Perry County residents commute to Evansville metropolitan area for work The footprint of Perry County as a workplace extends to a few adjacent counties in IN and KY. Source: OTM, LEHD, U.S. Census Bureau; PCRD 2,515 3,044 6,189 Perry County Commute Shed (Journey to Work) Data

11 Counties Jobs Count, 2011 ShareCumulative Share Perry County, IN3, % Dubois County, IN1, %45.6% Vanderburgh County, IN5495.9%51.6% Spencer County, IN4675.1%56.6% Hancock County, KY3784.1%60.7% Marion County, IN3043.3%64.0% Daviess County, KY2472.7%66.7% Posey County, IN2302.5%69.2% Knox County, IN1892.0%71.2% Warrick County, IN1541.7%72.9% All Other Locations2, %100.0% Perry’s commute shed touches major metropolitan area of Evansville (Vanderburgh County) Perry County sends over 600 workers to KY counties Strong economic ties to Dubois County (with 1,100 residents or 13% employed there) Source: OTM, LEHD, U.S. Census Bureau; PCRD Perry County as a Home (Commute shed)

12 Counties Jobs Count, 2011 ShareCumulative Share Perry County, IN3, % Spencer County, IN4999.0%63.7% Hancock County, KY3115.6%69.3% Daviess County, KY2434.4%73.7% Dubois County, IN1572.8%76.5% Vanderburgh County, IN1422.6%79.1% Warrick County, IN701.3%80.3% Marion County, IN601.1%81.4% Gibson County, IN430.8%82.2% Pike County, IN400.7%82.9% All Other Locations %100.0% Perry’s labor shed extends to adjacent counties in KY A labor shed is a region from where the labor force is drawn Source: OTM, LEHD, U.S. Census Bureau; PCRD Perry County as a Workplace (Labor shed)

INDUSTRY CLUSTER ANALYSIS: THE PERRY COUNTY REGION

Perry County Region, IN & KY The region includes the following counties: Dubois, Perry, and Spencer in Indiana Daviess and Hancock in Kentucky Source: RDM, PCRD & ESRI

Data Source: EMSI (QCEW Employees, Non-QCEW Employees, and Self-Employed are selected) & Population estimates 2013, Census Full-time jobs are accounted for. Economic Attributes of the Perry County Region

Note: Label includes cluster name, LQ 2012 and Employment 2012 Full-time jobs are accounted for. Data Source: EMSI , industry cluster definitions by PCRD Mature Star Transforming Emerging Perry County Region

Mature Star Transforming Emerging Note: Label includes cluster name, LQ 2012 and Employment 2012 Full-time jobs are accounted for. Data Source: EMSI , industry cluster definitions by PCRD Perry County Region

P e r c e n t G r o w t h i n S p e c i a l i z a t i o n L e v e l o f S p e c i a l i z a t i o n Transforming Stars Maturing Emerging Perry County Region, Industry Cluster Analysis, Arts, Entertainment, Recreation & Visitor Industries Business & Financial Services Education & Knowledge Creation IT & Telecommunications Printing & Publishing Manufacturing Sub-Clusters Fabricated Metal Product Mfg Machinery Mfg Chemicals & Chemical Based Products Advanced Materials Agribusiness, Food Prod & Technology Apparel & Textiles Forest & Wood Products Glass & Ceramics Transportation & Logistics Manufacturing Super-Cluster Manufacturing Sub-Clusters o Computer & Electronic Prod Mfg o Primary Metal Manufacturing o Transportation Equipment Mfg Biomedical/Biotechnical (Life Sciences) Defense & Security Energy (Fossil & Renewable) Mining Manufacturing Sub-Cluster Electric. Equip, App & Comp Mfg

Data Source: EMSI , industry cluster definitions by PCRD Star clusters

Perry County Region, Industry Clusters, 2012 Data Source: EMSI , industry cluster definitions by PCRD Full-time jobs are accounted for. Red numbers in parenthesis are negatives Cluster Name 2012 Jobs2012 LQ Percent Change LQ, EPW Competitive Effect(Shift-share), Forest & Wood Products 9, %$54,0011,281 Manufacturing Super- cluster 6, %$64, Biomedical/Biotechnical (Life Sciences) 5, (14%)$40,776 (713) Agribusiness, Food Processing & Technology 5, %$47, Advanced Materials 5, %$64, Business & Financial Services 4, %$51,8041,136 Energy (Fossil & Renewable) 3, (8%)$67,264 (222) Transportation & Logistics 3, %$61, Arts, Entertainment, Recreation & Visitor Industries 2, %$17, Primary Metal Manufacturing 2, %$86, Transportation Equipment Manufacturing 2, %$56, Defense & Security 1, (16%)$38,416 (272) Chemicals & Chemical Based Products 1, (6%)$53,916 (82) Information Technology & Telecommunications 1, %$54,96485 Education & Knowledge Creation 1, %$31, Apparel & Textiles 1, %$48, Fabricated Metal Product Manufacturing %$52,07481 Computer & Electronic Product Manufacturing %$49, Printing & Publishing %$39,11197 Glass & Ceramics %$44, Machinery Manufacturing %$58,04812 Mining (46%)$67,082 (77) Electrical Equipment, Appliance & Component Mfg (60%)$50,415 (28)

Note : ** presents “Star clusters in 2012” Data Source: EMSI , industry cluster definitions by PCRD Full-time jobs are accounted for. Perry County Region, Regional Expenditures & Leakages, 2012

PCRD’s Major Programs

Natural & Environmental Resources Steve Yoder Economic Development Heather Strohm Kris Parker Leadership & Civic Engagement Tanya Hall Economic Analysis Tamara Ogle Local Government NEW REGIONAL CD EDUCATORS

Opportunities How regional educators can help  Assist educators in understanding data on their communities  Explore feasibility of an economic impact analysis and/or other analytical tools  Assist in understanding local government structures, taxes and the budget process  Help you plan/teach local government programs to elected officials, government boards and community leaders  Help you to plan a Beginner’s Guide to Grant Writing workshop  Help facilitate a community decision-making process  Help present a workshop on a leadership topic Tanya Hall Tamara Ogle Kris Parker

Opportunities How regional educators can help  Assist business and entrepreneurial networks in establishing strategic and business plans in collaboration with existing business resources.  Assist in identifying business assets and opportunities for improvement with respect to business attraction, retention and creation.  Help plan programs related to the physical development of communities and their natural resources.  Help plan trainings for non-profit board members. Heather Strohm Steve Yoder

NETS Dynamics – Perry Co

Net New Jobs in Perry County Expansions = Expand - Contract Startups = Expansion Startups + New Startups - Close Relocation = Move In - Move Out

To assist targeted communities in Indiana as they transform their local economies through the development of key components required for entrepreneurship and small business development. Purpose Creating a Regional Entrepreneurial System Together

Three ways in which entrepreneurship plays a critical role in economic development… Entrepreneurship – the link between assets and finding new sources of competitive advantage and economic opportunity Entrepreneurs – recognize opportunity and bring together resources to turn opportunity into a viable business venture Entrepreneurial communities and leaders – understand their assets and mobilize to employ these assets through entrepreneurship development Relationships and Roles

Entrepreneurs and small business owners play an important role in local economic development, specifically… As Employers: creating new jobs and playing a significant role in hiring part- time workers and new workforce entrants As Tax Revenue Generators: broadening tax base, thus generating greater property and income tax revenues As Economic Supporters: buying and supplying local products and services. Income generated typically not exported out of local community Entrepreneurship as a Development Strategy

and… As Property Owners and Renters: leasing space from local property owners and filling vacant storefronts downtown As Providers of Economic Stability: small homegrown firms are, by definition, owned and operated by people who have a personal stake in the community and are more likely to remain As Providers of Economic Diversity: entrepreneurs diversify the mix of business types and sectors which contributes to economic resiliency Entrepreneurship as a Development Strategy (cntd)

Interconnectedness between rural and urban – Regionalism = rural and urban linkages – Systems = rural and urban resources – Assets = unique rural and urban strengths and markets – Ensure that urban and rural neighbors serve their region as equal partners The New Paradigm Needs to Embody Four Policy Principles

More entrepreneurs – Increase the numbers Stronger entrepreneurs – Increase the survival rate More high growth entrepreneurs – Increase the number that create jobs and wealth Policy Goals

These policy goals translate into program goals… More entrepreneurs in the pipeline More entrepreneurs staying in their community Better informed entrepreneurs Better skilled entrepreneurs More job creating entrepreneurs Greater business productivity Program Goals

Entrepreneurship and Economic Development Research suggests that: Growing firms from “within” is a more cost effective means of creating profit centers, tax base and employment per job created. Small, home grown firms play a significant role in job creation in both urban and rural areas. Communities should take a balanced approach to economic development and complement recruitment, business retention and expansion activities. Your community is what brings it all together!

“An effective entrepreneurship development system integrates a wide range of programs and tailors products and services to meet the diverse needs of entrepreneurs. It should be comprehensive, flexible, culturally sensitive, and integrated, and should require providers to collaborate rather than operate independently or in isolation” - Dabson, 2005 An Entrepreneurial System Supportive EnvironmentEntrepreneur Networks Training and Technical Assistance Access to CapitalYouth Entrepreneurship

Supportive environment: creating community and civic environments that celebrate and support entrepreneurs. Be Entrepreneur-focused Create ‘No wrong door’ Celebrate entrepreneurs Component #1: Supportive Environment Supportive Environment

Entrepreneur Networks: facilitating opportunities for informal gatherings of entrepreneurs to share experiences and information. Facilitate, but don’t lead Networks should be “by and for” entrepreneurs Component #2: Entrepreneur Networks Entrepreneur Networks

Training & Technical Assistance: the creation of systems of advice, expertise and training appropriate to the needs of entrepreneurs – can be public, private, educational or nonprofit agencies. ID your community’s “coaches” Help entrepreneurs navigate the system Component #3: Training & Technical Assistance Training and Technical Assistance

Access to Capital: in the form most useful for the stage of business development Connect entrepreneurs to local lenders – Increase the banking IQ of local entrepreneurs – Increase the business IQ of local bankers Leverage regional and state funding Incentives and assets Component #4: Access to Capital Access to Capital

Youth Entrepreneurship: programs to excite young people in schools, community colleges and universities about the possibilities of creating their own businesses Build a pipeline of future entrepreneurs Engage young people Component #5: Youth Entrepreneurship Youth Entrepreneurship

WHERE DO WE GO FROM HERE? Creating an Entrepreneurial System in the Perry County Region

According to Markley et al. (2005), communities that are “ready” have: Particular capacities in human, financial, and physical infrastructure A supportive business/entrepreneurial climate A strong self-image with positive citizen and community attitudes Open and creative community leadership, or leadership environment, that encourages and nurtures emerging leaders Entrepreneurial Community Readiness

Community Readiness Questionnaire

The Results

Awareness What is? Who are? How many? Networks? Impacts of? Organization Which? How? Collaboration Buy-in Planning What assets? Opportunity? Vision? Goals? Scope? Projects Focus Investments Incentives Implementation Impacts Evaluation Measurement Celebration Sustainability Commitment The Process

Create a list of institutions and associations that can assist us in the creation of a regional entrepreneurial system… Who else? Who?

Purdue Extension Purdue Center for Regional Development Local Initiatives Support Corporation Chambers LEDOs Community foundation Utility companies Local governments Revolving loan funds United Way Producer groups Farm Bureau / Advocacy groups Elevate ventures 4H / FFA Economic Growth Council Variety of local “Partners” _____________________ Who?

Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Thank you! Bo Beaulieu and Michael Wilcox and October 29, 2014 Presented in Tell City, IN at the Transforming Your Local Economy – Perry County Hosted by the Southwest ISBDC To Learn More about the Purdue Center for Regional Development, check our new website: