1. ACCE DIALogue Behind the Numbers of Economic Development
J. Mac Holladay May 11, 2006

2. What is Economic Development?

3. Defining Economic Development
An environment in which communities and their citizens prosper and improve their quality of life
Economic diversity that sustains each locality and the entire region throughout economic cycles
Economic development is a process -- not an event
Economic development is where public policy and free enterprise intersect

4. Economic Development Today
Economic development means many things to many people
In our history, it has meant only “industrial recruitment”
Today’s definition is about multiple strategies—
small business development, tourism, existing business and industry, downtown development, sports, minority business, regional partnerships, etc.
It’s about building better communities

5. Five Key Trends in Economic Development
Globalization
Technology and Telecommunications
Regionalism
Sustainable Development
Workforce Development

6. Holistic (adj.) –
Relating to the theory that living matter or reality is made up of organic or unified wholes that are greater than the simple sum of their parts
Concerned with wholes rather than analysis or separation into parts
Emphasizing the importance of the whole and the interdependence of its parts

7. Economic Development Strategy
Enterprise/ Small Business Development
Existing Business and Industry Services/ Procurement
Tourism/ Film Development/ Product Development
Downtown/ Main Street/ Historic Preservation
International/ Trade/ Export
Quality Recruitment/ Commercial/ Industrial
Sports/ Recreation/ Culture
Minority Business Development

8. Getting Behind the Numbers
Know your community
Perform basic data research
Determine priority competitive issues
Create an actionable plan
Ongoing knowledge of the economy

9. Community Landscape Basic statistics Basic structure Economy
Governments
Geography
Leadership
History
Realities and problems
Trends, patterns, values, etc.
Politics
Unique features

10. Key Indicators Economic Employment change Top employers
Recent layoffs and announced openings
Labor force participation rates and unemployment rates
Economic structure by employment sector
Entrepreneurial activity
Average wages
Demographic
Population change
Migration patterns
Age distribution
Racial and ethnic composition
Commuting patterns
Socioeconomic
Teenage pregnancy rates
Educational attainment levels
Poverty rates
Per capita income

11. Competitive Realities Assessment

12. 4 Key Areas of Competitiveness
Education and Workforce
Infrastructure
Business Costs and Capacity
Quality of Life

13. Comparison Areas Key competitors State Nation
Metro areas, counties, and/or cities your community competes with for jobs and investments
State
Nation

14. Data Sources National Level State Level Community Level
Bureau of Labor Statistics (BLS)
Bureau of Economic Analysis (BEA)
US Census Bureau
National Center for Education Statistics
ACCRA
National Association of Realtors
Federal Bureau of Investigation (FBI)
State Level
Department of Health
Department of Labor
Department of Education
Community Level
Data available from government sources
Additional data collection needs
Staff research
Employer surveys
Work with community partners to produce pertinent data
Energy Information Administration (EIA)
Federation of Tax Administration
Federal Deposit Insurance Corp. (FDIC)
Small Business Association (SBA)
Patent Trademark Organization
Environmental Protection Agency (EPA)
Department of Commerce
Department of Transportation
Higher Education Institutions

15. Education and Workforce Development Indicators
Educational attainment levels
K-12 enrollment trends
High school dropout and graduation rates
Per pupil expenditure
Student-teacher ratios
Standardized test scores
Available higher education programs
Two- and four-year institution graduates by degree program
Available workforce development programming

16. Infrastructure Indicators
Accessibility, capacity, and condition of transportation networks:
Road
Air
Rail
Public transportation
Technology assets
High-speed, broadband internet access
Water and sewer infrastructure capacity
Access to business capital
Innovation measures
Patent activity
Academic research funding

17. Business Costs and Capacity Indicators
Availability of buildings, sites, and business parks for commercial and industrial use
Ease/difficulty of development regulations/processes
Labor cost assessment based on average annual pay by business sector
Cost of utility services
Average fuel prices
Local and state tax rates affecting business operations
Assessment of available local and state incentive programs
Available support for entrepreneurs and small business owners
Self-employed individuals, by business sector

18. Quality of Life Indicators
Cost of living estimates
Affordability of housing
Availability of health care services
Measures of infant, child, and adult welfare and health
Crime rates
Recreational, cultural, arts, and entertainment amenities
Air and water quality, and other measures of environmental health
Civic engagement
Creativity quotient and young professional amenities

19. Key Findings: Making Sense of the Data
Strengths
Weaknesses
Opportunities
Threats

20. Review of Key Findings from Research
Community Landscape
Basic Data
Comparables
Community SWOT analysis
Macroeconomics: “Big Picture”
Utilize dedicated research staff
Outline community capacity
Identify competitive realities

21. Example: Key Performance Measures and Benchmarks
Population Change:
Job Growth Rate:
Sept – Sept. 2005
Nashville MSA: 6.4% -Richmond MSA: 4.6% U.S.: 3.4%
Per Capita Income, 2003:
Nashville MSA: $ Richmond MSA: $32, U.S.: $31,472
Poverty Rate: In 2003, both MSAs had poverty rates around 10 percent. However, the City of Richmond’s (20.2 percent) was much higher than that of Davidson County, TN (13.5 percent).
Educational Attainment: In 2004, both MSAs had identical high school attainment (85 percent), but Richmond (36.2 percent) leads Nashville in college graduates (29.3 percent).
2005
% Change
Nashville MSA
1,422,544
22.5%
Richmond MSA
1,175,654
15.9%

22. Example: Socioeconomic Well-being: Per Capita Income
Source: U.S. Bureau of Economic Analysis

23. Example: Socioeconomic Well-being: Poverty Rates
Source: U.S. Census Bureau

24. Example: Labor Force Participation Rate (LFPR)
Region’s LFPR has decreased since 1990,
And is lower than the state, nation, and all 3 peer metro areas.
Low LFPR is related to lower per capita income.
Source: BLS, Employment Security Commission of N.C., U.S. Census Bureau

25. Example: Educational Attainment

26. Example: Migration Patterns
Components of Population Change, 2000 to 2004: Greater Waco, Benchmarks, Texas, and United States
Source: U.S. Census Bureau Population Estimates

27. Possible Key Benchmarks
Increase in real per capita income
Reduction in teenage pregnancy
Increase in labor force participation rate
Increase in high school graduation rate
Growth in the number of self-employed
Investment in local infrastructure development

28. Possible Key Benchmarks
Reduction in infant mortality rate
Increase in tourism/travel dollars spent
Reduction in the poverty level
Increase in investment of existing businesses
Steady population growth (in-migration)

29. Ongoing Knowledge of your Economy
Track the key demographic and economic statistics at least once a year
Note any significant local, national, or global change that could affect your numbers
Always maintain perspective of how your economy is doing in a national and global context
Keep looking for new information from reliable sources
Monitor your plan’s benchmarks and performance measures

30. Best Practices
Nashville, TN
Rome, GA
Austin, TX

31. Best Practice: Nashville, Tennessee

32. Best Practice: Nashville, Tennessee
Information available on website:
Data: demographic, workforce, taxes, incentives, target industries, utilities, transportation, education, culture and living, business activity, and monthly economic indicators
Customized site selection and real estate searches
Regional geographic maps
Investors and partners
Some programs targeting competitiveness:
Business location assistance
Starting a business
Existing and small business services
International business

33. Best Practice: Rome, Georgia

34. Best Practice: Rome, Georgia
Information available on website:
Data: demographic, income, population, workforce, industry
Industrial sites and buildings
Transportation, technology, utility, education, and healthcare availability
Some programs targeting competitiveness:
Business location assistance
Starting a business
Existing and small business services
International business

35. Best Practice: Austin, Texas

36. Best Practice: Austin, Texas
Information available on website:
Data: demographic, education, workforce, business and retail, transportation, telecommunications and utilities, cost of living, quality of life, climate and environment, taxes and incentives
Interactive community maps and real estate property search
Business resources
Media center
Some programs targeting competitiveness:
Tax and utility incentive programs
Austin Wireless Capital
Distribution and logistics
International investment
Clean energy technologies
Headquarters and regional offices

37. What Not to Do: Using and Presenting Data
Don’t mix different kinds of data or data sources
Don’t use or create an index without an understanding of how it is weighted
Don’t just collect the data to put on your website:
track the data and
understand what implications changes have for your community
Don’t use any data that comes from a questionable source
Don’t use data you can’t explain in simple terms

38. What to Do: Using and Presenting Data
Do track indicators on an ongoing basis
Do know how to use data to “sell” your community
Do the analysis - the data is only the first step
Do tell the whole story, but highlight your strengths
Do keep it simple - concentrate on 4 or 5 statistics
Do let the numbers drive the conclusions. Don’t make assumptions.

39. the numbers will set you free.
If you know the numbers,
the numbers will set you free.
Managing
Harold Geneen,
former CEO of ITT

40. ACCE DIALogue Behind the Numbers of Economic Development
J. Mac Holladay May 11, 2006