1. TARGETED ECONOMIC DEVELOPMENT: TOOLS AND TECHNIQUES Mike D. Woods Oklahoma State University February 2003

2. Lincoln County Targeted Economic Development Results

3. Table of Contents Introduction –Definitions –Applications Study Area Results Weighting System Lincoln County Response Site Selection Factors State Target List How to Use the TED List

4. Introduction Definitions Applications

5. What is Targeted Economic Development (TED)? A systemized approach to analyzing a community or regional economy to identify potential options for creation, attraction, retention, or expansion of job/income opportunities and economic growth. Analytical tools and community planning tools are utilized to enhance community decision making and incorporate local desires and ideas.

6. Targeted Economic Development (TED) Includes Several Methodologies Including: Target Industry Analysis Cluster Analysis Community Assessment and Planning

7. What is Target Industry Analysis? A method of local community economic analysis which produces a list of business sectors which have a moderate-to-strong likelihood of containing companies that might be interested in expanding and/or locating in the community under study. Source: Doescher

8. Target Industry Analysis Techniques Econometrics (probability)  Leatherman-Kansas  Barkley-South Carolina Location Quotients  Bradshaw-California Input-Output  Lamie-Virginia  Johnson-Missouri  Holland-USDA

9. What is Cluster Analysis? Industrial clusters are defined as interconnected sets of firms in a region that have national or global competitive advantage because they share common infrastructure including university research, labor market, specialized suppliers, and collective marketing. Source: Bradshaw, 2000

10. What is Community Assessment and Planning? Community assessment and planning is an organized process to follow through community assessment, development of a strategic plan, community involvement, implementation of the plan, and evaluation of results.

11. (2) Engage the Community and Legitimize the Process (1) Begin/ Continue the Process (10) Create an Ongoing Process (8) Evaluate the Effort (3) Form an Organized Structure (6) Seek Community Feedback and Commitment (5) Develop a Strategic Plan (9) Celebrate Success (4) Conduct Community Assessment(s)* (7) Implement the Plan Community Development * One tool to accomplish this is Targeted Economic Development

12. How is Targeted Economic Development (TED) used? Target industry analysis can be used in both business recruitment AND retention or expansion of existing business. Success depends on the way your community uses this information in their economic development efforts.

13. Households Basic Industry Local Stores Labor Goods & Services $ $ $ $ $ $ Your Community

14. Study Area

15. Lincoln – Pottawatomie County Study Area

16. Lincoln County Population Source: ODOC

17. Lincoln County Aggregated Employment Source: IMPLAN

18. Lincoln County Top 10 Employers There are 12,037 jobs in Lincoln County. The top 10 employers account for 5,497 jobs, 45.7% of all jobs in the region. All other employers account for 6,540 jobs, 54.3% of all jobs.

19. Lincoln County Per Capita Personal Income Source: ODOC

20. Results

21. Targeted Strategies for Economic Development Export Enhancement Import Substitution

22. Export Enhancement Households Basic Industry Local Stores Labor Goods & Services $ $ $ Products $ Your Community $ $ Retail Goods & Services Export Enhancement is expanding the volume of goods and services your region sells to the rest of the world.

23. Export Enhancement Community Exports –Domestic Exports –Foreign Exports. Export base includes all goods and services that are sold to businesses or persons outside the region.

24. Lincoln – Pottawatomie County Top 10 Exports IMPLAN Sector Export Value, $M Rank 264Copper Rolling and Drawing160.601 220Miscellaneous Plastics Products156.422 065Fluid Milk110.163 072Flour and Other Grain Mill Products59.694 038Natural Gas & Crude Petroleum45.695 454Eating & Drinking44.836 124Apparel Made From Purchased Materials31.667 230Glass and Glass Products – Exc Containers30.218 460Insurance Agents and Brokers29.919 378Electronic Components – N.E.C.28.6610

25. Import Substitution Import Substitution is replacing items purchased outside the region with local production Households Basic Industry Local Stores Labor Goods & Services $ $ $ Your Community $ Supplies for Local Businesses Inputs $ $ Family Goods & Services

26. Import Substitution Commodities produced in one region often use goods and services (inputs) imported from outside the region. “Import Substitution” refers to replacing imported goods and services with goods and services produced in the local community.

27. Lincoln – Pottawatomie County Top 10 Imports IMPLAN Sector Import Value, $M Rank 447Wholesale Trade123.051 001Dairy Farm Products59.952 260Primary Copper55.013 459Insurance Carriers48.464 492Hospitals38.285 441Communications – Except Radio and TV36.426 490Doctors and Dentists34.037 384Motor Vehicles33.138 220Miscellaneous Plastics Products30.569 191Plastic Materials and Resins30.0010

28. Weighting System

29. Evaluation Criterion for Export Industries What is important to your community? –Total Employment –Total Employee Compensation –Direct Compensation per Employee –Employment Growth

30. Total Employment Total number of people employed directly by the initial industry, as well as those employed indirectly due to the multiplier effect.

31. Total Employee Compensation Total payroll for all persons employed directly by the initial industry, as well as those employed indirectly due to the multiplier effect.

32. Direct Compensation per Employee Average wage paid to each direct employee.

33. Employment Growth Percentage change in the number of people employed in the United States from 1996 to 1997.

34. Lincoln – Pottawatomie Community Exports with Equal Weights IMPLAN Exports $M Rank by Total Employment Rank by Total Employee Compensation Rank by Direct Compensation per Employee Rank by Employment Growth Cumulative Weighted Rank 220 Miscellaneous Plastics Products 156.4231723341 435 Motor Freight Transportation and Warehousing 21.52372 264 Copper Rolling and Drawing160.60383 352 Fluid Power Pumps & Motors 16.37484 447 Wholesale Trade5.25545 378 Electronic Components – N.E.C. 28.66616 474 Personnel Supply Services8.36647 056 Maintenance and Repair Other Facilities 13.05658 454 Eating & Drinking44.83679 230 Glass and Glass Products- Exc Containers 30.217110

35. Weighting System Assign each criterion a value based on the following scale. You may use each value more than once. 0 = Unimportant- A criterion that the community feels has no value to their development objectives. 1 = Some Importance- A criterion that the community feels will contribute only a small amount to achieving the community objectives. 2 = Moderate Importance- Experience and judgment slightly favor this criterion over the others. 3 = Essential or Strong Importance- Experience and judgment strongly favor this criterion over the others.

36. Change Weighting Total Employment.24 Total Employee Compensation.32 Direct Employee Compensation per Employee.30 Employment Growth Rate.14

37. Lincoln–Pottawatomie Community Exports with Community Weights IMPLAN Exports $M Rank by Total Employment Weight=.24 Rank by Total Employee Compensation Weight=.32 Rank by Direct Compensation per Employee Weight=.30 Rank by Employment Growth Weight=.14 Cumulative Weighted Rank 220 Miscellaneous Plastics Products 156.420.7270.3182.1213.2206.41 264 Copper Rolling and Drawing160.607.72 352 Fluid Power Pumps & Motors16.379.13 435 Motor Freight Transportation and Warehousing 21.529.94 447 Wholesale Trade5.2512.75 378 Electronic Components – N.E.C. 28.6615.26 523 State & Local Government – Non Education 25.6015.67 454 Eating & Drinking44.8315.98 230 Glass and Glass Products - Exc Containers 30.2116.09 056 Maintenance and Other Repair Shops 13.0516.410

38. Evaluation Criterion for Import Industries What is important to your community? –Total Employment –Total Employee Compensation –Direct Compensation per Employee –Employment Growth

39. Lincoln – Pottawatomie Community Imports with Equal Weights IMPLAN Imports, $M Rank for Total Employment Rank for Total Employee Compensation Rank for Direct Compensation per Employee Rank for Employment Growth Cumulative Weighted Rank 220 Miscellaneous Plastics Products 30.5632819321 264 Copper Rolling and Drawing 15.94332 441 Communications – Except Radio and TV 36.42403 490 Doctors and Dentists34.03404 447 Wholesale Trade123.05495 522 State & Local Government – Education 21.45546 454 Eating & Drinking7.21557 455 Miscellaneous Retail10.23588 475 Computer and Data Processing Services 23.70599 492 Hospitals38.286210

40. Lincoln County Response to Community Preparedness Checklist

41. Lincoln County Response Diversity and Participation YES NO Blank Does Lincoln County have…? 711 1. An existing local organization for promoting development efforts. 720 2. Widespread community participation in the development effort representing social/economic segments of the population. 711 3. Public and private sector cooperation

42. Lincoln County Response Resource Availability YES NO Blank Does Lincoln County have…? 711 4. Adequate resources to support some level of local activity. 531 5. Willingness to invest those resources in local plants. 630 6. An inventory of financing sources available from local, state, and federal agencies as well as the private sector.

43. Lincoln County Response Networks and Information YES NO Blank Does Lincoln County have…? 612 7. Good coordination among local agencies and organizations promoting community/economic development. 900 8. Working relationships with state and federal sources of assistance. 810 9. Support and involvement of the local media.

44. Lincoln County Response Public Infrastructure YES NO Blank Does Lincoln County have…? 711 10. Adequate public infrastructure to support business activities and provide for local quality of life. 810 11. Community services and facilities to support the needs of existing and potential residents. 540 12. A capital improvements plan to inventory existing public infrastructure and anticipate future needs.

45. Lincoln County Response Human Resources YES NO Blank Does Lincoln County have…? 711 13. A well-trained workforce. 810 14. Capabilities to provide training and skills when needed. 900 15. Local leadership with the vision and desire to build a community plan for the future.

46. Site Selection Factors based on a National Survey Combined ratings of 1999 site selection factors are percentages and are all the total of “very important” and “important” ratings of the Area Development site selection survey.

47. Combined Ratings of 1999 Site Selection Factors Availability of skilled labor95.8 Highway accessibility94.6 Labor costs93.8 State and local incentives90.3 Occupancy or construction costs87.5 Tax exemptions85.9 Energy availability and costs85.2 Availability of telecommunications services85.1 Source: Area Development, 1999

48. Combined Ratings of 1999 Site Selection Factors Availability of land85.0 Cost of land80.9 Low union profile79.5 Environmental regulations79.0 Availability of unskilled labor77.3 Nearness to major markets75.6 Right-to-work states67.7 Availability of long-term financing64.2 Source: Area Development, 1999

49. Combined Ratings of 1999 Site Selection Factors Worker/technical programs63.7 Nearness to suppliers59.3 Raw materials availability58.7 Accessibility to major airport 57.2 Near technical university31.1 Railroad services31.0 Waterway or ocean port accessibility13.2 Source: Area Development, 1999

50. Combined Ratings of 1999 Quality-of-Life Factors Low crime rate79.9 Ratings of public schools72.4 Health facilities70.4 Housing availability70.1 Housing costs69.1 Source: Area Development, 1999

51. Combined Ratings of 1999 Quality-of-Life Factors Recreational opportunities57.6 Climate58.8 Cultural opportunities52.5 Colleges and universities in area 52.4 Source: Area Development, 1999

52. Oklahoma State Target List

53. State Targeted Industries Aerospace Motor Vehicles Parts/Accessories Business Services (Finance, Insurance, Dot.Com/Internet) Communications/Telec ommunications (Fixed/Wireless) Electronics/component s and related high tech industry Food Processing Plastics and Rubber Distribution & Warehousing General Manufacturing Health Source: ODOC, 2000

54. How to Use the TED List

55. How to use the Targeted Economic Development List 1)Identify local organization and local contact person. 2)Complete “Community Preparedness Checklist” and confer with community development professionals from OCES. 3)Review targeted industry list and confirm region of study. 4)Review targeted list of industries. Do they make sense? Do you have questions?

56. How to use the Targeted Economic Development List 5)Evaluation criteria include: jobs, wages, wage rates, and employment growth rates. How do you rate these criteria? 6)Begin to identify the top 10 industries to focus on for recruitment efforts. 7)Begin to identify the top 10 industries on focus on for retention/expansion efforts. 8)Consider in-depth analysis of these industries. Utilize the U.S. Industrial Outlook and others.

57. How to use the Targeted Economic Development List 9)Build a recruitment program including: –Target List –Marketing Material –Mail Campaign –Personal Contracts

58. How to use the Targeted Economic Development List 10)Build a retention/expansion program including: –Visitation –Appreciation Efforts –Expansion Needs –Local Support

59. How to use the Targeted Economic Development List 11)Remember the key role of your allies and resources! 12)Build your strategy for development with CARE. Balance optimism with realism and insure you have the resources to accomplish the goals you set.

60. Thank you!

61. Lincoln County Targeted Economic Development Results Thursday, June 25, 2015