Best Practices in Business Retention

Economic Development Best Practices in Business Retention TVA Perspective Business Case for Retention Award Winning Models What’s Next

Economic Development TVA Perspective

Economic Development TVA Perspective Nation’s largest public power producer Over $9 billion in 2006 revenues 158 distributors, 62 directly served customers 221 counties in seven states, serving 8.7 million people % reliability for seven straight years

Economic Development TVA Mission Energy – provide affordable, reliable power Environment - provide environmental stewardship and integrated river management Economic Development – promote sustainable development

Economic Development TVA Perspective Economic Development is at the core of TVA’s mission. TVA works together with distributor customers, communities, and state and regional economic development partners to:  attract new companies  retain and grow existing businesses  help communities prepare for growth

Economic Development TVA Perspective Jobs and capital investment are our bottom line  Industrial recruitment  Business Retention  Technical services  Community Development  Entrepreneurship  Retail development and recruitment  Financial assistance

Economic Development The Business Case Award Winning Models

Economic Development The Business Case Fortune 500 Top 25 Sectors – Manufacturing11 2. Energy13 3. Communications 1 Fortune 500 Top 25 Sectors – Finance/Insurance10 2. Manufacturing 5 3. Energy 4 4. Retail 2 5. Health 2 6. Communications 1 7. Technology Services 1

Economic Development National Manufacturing Trends 548,900 net jobs lost in the US in FY05 5,330 net job loss in Valley 8,050 manufacturers lost in US in FY05 Shifting manufacturing sectors Textiles, furniture, light assembly going offshore Regional disparities occurring Bureau of Labor Statistics 2005

Economic Development Tennessee Valley Trends 11,325 manufacturing facilities in the Valley 666,000+ manufacturing jobs in the Valley 21.4% total employment 32.7% of rural 16.9% of urban 815,000 additional jobs from multiplier effect $27.0 billion personal income

Economic Development Recruitment Costs $1,000 – $50,000 per job  Retention Costs $200 – $4,000 per job Source: US Department of Labor & Employment, 2006 Cost Benefit Analysis

Economic Development New Job Creation - Averages Recruitment 15%

Economic Development  Got Focused  Driven at the local level  Strong action plan  Got Prepared  Training  Researched Targets  Pre-determined follow up plans Award Winning Models

Economic Development  Got Connected  Partnered with industry stakeholders  Learned from the best practices of others  Stayed “connected” to industry Award Winning Models

Economic Development Award Winning Models Blane Canada, Ltd

Economic Development Award Winning Models

Economic Development  Distributor and 2 rural, West Tennessee Counties  Two Unique Strategies  Big Results  Success Breeds Success  2007 BREI Winner Gibson EMC

Economic Development  New Economic Development Director  No Existing Industry Program  The Numbers Tell the Story  The Impact of One Call  2005 BREI Winner 0 to 60 in 30 Days

Economic Development  North Mississippi Industrial Development Association  50% Power Distributors - 50% TVA  Industrial Recruitment Focus  “So, tell me about your workforce…”  2006 Blane Canada, Ltd Award NMIDA ToyotaGeneral Electric Peterbilt

Economic Development What’s Next?

Economic Development What’s next at TVA?  Enhancing our company’s approach to retention  Aligning internal resources  Equipping distributors and communities  Integrating current products and services  Creating new products and services  Incorporating good energy policy with retention  Innovative Partnerships

Economic Development What’s next?  Innovation  An example: Automotive Research Alliance  Workforce Development and Education  Expanding Entrepreneurship  IEDC “Innovation Agenda”

Economic Development What’s next for you?  Key Account Management?  Website Enhancement?  Partnerships with economic development?  Rate consultation?  Retention friendly policies?  Industry support?

Economic Development BREI Business Retention & Expansion International Annual Conference Wichita, KS June 2-8, State & local ED Partners EDA IEDC What’s next for you?

Thank you Questions? Amy Bunton(615)