1. The New North: From Concept to Reality

2. How it Got Started The Fox Valley WDB – “What’s happening?” The
The New North
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Networking Welch & Winters
The Bay Area WDB joins in
The project evolves
The concept of a regional plan emerges
The

3. The Plan is Launched! October 2004 Key players/leaders emerge
The Governor speaks
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4. The Keys to the New North
Private sector leadership
Money
A plan
A professional staff
Buy in
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5. Is the New North plan a success?
Basis for forming the New North Economic Partnership and all that followed
Outside assessment – “We want a plan like the New North plan.”
Stimulated economic development thinking within the New North region
Led to other regional plans Centergy, Grow North, UP/Wisconsin Border Region

6. Regional Organization and ThinkingMI WI MN IA
UP/WI Border Region

7. Measuring Up: What has happened and where are we?

8. Key Strategies Leverage the regional brand
Attract, develop and retain diverse talent
Advance educational attainment
Target growth opportunities
Build entrepreneurial climate and small businesses
Incorporate sustainability
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9. Key Events Since 2004 Formation of the New North Inc.
A strategy to work the plan
Hiring a first rate executive director
The economic summits
The branding initiative
Targeted initiatives
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10. Some Leading Edge Thinking and Action
The Wind Energy Cluster
Sustainability and Green Jobs
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Cellulosic Bio-Fuels Studies and Plans

11. Looking Ahead: The New Normal Economy

12. Perspective & Attitude Adjustment
There is and will be bad economic news for at least six more months.
The most successful Wisconsin industries – paper and dairy- came out of economic crisis
Many Wisconsin industries were initial failures - paper T
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13. The Last 11 Recessions The New North Measuring Up Looking Ahead
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Source: The National Bureau of Economic Research 13

14. What makes this recession different from the last five major recessions?
28 years since last major downturn
First recession experience for 1+ generation(s)
The multiple sources of economic trouble & risk
The speed and depth of the economic downturn
The first major recession in the age of the Internet
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15. U.S. Housing Starts 2003 1.4 million 2004 1.85 million
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Housing = 4% GDP
Normal Replace/ Growth 1.3 million 15

16. U.S. Auto Sales 2004 17.7 million 2005 16.9 million 2006 17.0 million
2009 (Est.) million
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Decline: 18% in 2008; 25% in 2009
Autos = 3.5% of GDP
Past declines: 21% in 1974; 19.1% in 1980 16

17. The Global Economy 2008 World Population (Market) 6.5 Billion
U.S. Population Billion
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World Economy (GDP) $60.6 Trillion
U.S. Economy $14.4 Trillion
EU Economy $18.4 Trillion
China’s Economy $4.3 Trillion
Source: 2006 Estimates IMF and World Bank 17

18. Economic Excess/Overhang
Furloughs and wage freezes and give backs
Mercury Marine
Milwaukee labor contracts
State furloughs
Unemployment
Housing glut/Housing cycle
Consumer deleveraging
Consumer savings rate> – to +
New financial regulations
Generational reality check
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Moving Ahead 18

19. The Budget Deficit: A Threat to the Dollar
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20. So what is the “New Normal”?
Consumer:
Savings Rate
Spending
Work Life
Standard of Living
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Moving Ahead ä æ ä æ 20

21. So what is the “New Normal”?
Business:
Regulation
Outsourcing
Globalization
Business Cycles
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Moving Ahead ä æ ä ä 21

22. Moving Ahead: Where do we go from here?

23. In the New Normal economy, where is the advantage?
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A back to basics economy
Huge global markets
A versatile workforce
Alignment with market opportunities A

24. Key Global Market Demand
Energy
Fiber
Protein
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25. Some Economic Opportunities
Waste transformation & technology
Higher education & training
International direct investment
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26. Why waste transformation?
New North is full of waste producers – meat packing, paper, dairy farms and processors, etc
Waste transformation is green
Academic and private sector research assets
Some proven models & pilots e.g. Encap
The world’s largest fresh water clean up project.

27. Higher Education and Workforce Training
Large markets – global markets
UW, private colleges, proprietary, and WTCS assets
Private sector training programs
Good paying jobs
Students as “educational tourists”

28. Foreign Direct Investment
The record of foreign direct investment in the New North
A different investing perspective and timeline
An interest in R&D – Fincantieri, Kikkoman, Roche
UW Task Force on International Investment

29. Parting Thoughts
Focus on the plan: Most regions don’t have a strategic plan
Think globally: The markets increasingly are over there
Position for the next recovery: It will come and those with a good plan will prosper
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30. David J. Ward, Ph.D., CEO
Phone: (608)
Fax: (608)
Web: