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									Economic Growth: Survey of Growth Communities




Discussion and Presentation on the Survey Results From Fifteen
           Moderate and High Growth Communities.



                     Moran, Stahl & Boyer
                   Connecting Companies With CommunitiesTM
Economic Growth: Survey of Growth Communities

Moran, Stahl & Boyer Profile (Sample of Client Base)
 Corporate Site Selection                       Economic Development Consulting
 • American International Group (AIG)           • Alberta
 • American Fuji Seal                           • Arizona
 • AT&T                                         • British Columbia
 • Colgate-Polmolive                            • Connecticut
 • Columbia Energy Group                        • Delaware
 • Corning Incorporated                         • Florida
 • Dow Chemical                                 • Georgia
 • Federal Express                              • Massachusetts
 • Infineon Technologies                        • Newfoundland/Labrador
 • John Hancock Insurance                       • New Jersey
 • Johnson & Johnson                            • New York
 • Mac Dermid Corporation                       • Pennsylvania
 • Merrill Lynch                                • Texas
 • Prudential Financial Services                • Virginia


Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Discussion Topics
 • The fifteen (15) growth communities that participated in the survey
 • Key drivers of population growth
 • Target industries for future growth
 • Techniques for reaching out to existing companies
 • Product/company life cycles
 • The new work ethic and its impact on workforce development
 • Effective economic development marketing tools
 • Two most important things to stimulate economic growth
 • Reflections on economic growth
 • Action Plan to support economic growth




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Fifteen Communities Surveyed
                             2005         AAGR
 Location                  Population   2000-2005
 Medford-Ashland, OR          195,000    1.55%
 Bend, OR                     141,000    4.51%
 Flagstaff, AZ                124,000    1.30%
 Albuquerque, NM              980,000    1.87%
 Austin-Round Rock, TX      1,453,000    3.25%
 San Antonio, TX            1,890,000    2.08%
 Indianapolis, IN           1,641,000    1.51%
 Nashville, TN              1,423,000    1.69%      Community Selection Based on:
 Knoxville-Oak Ridge, TN      655,000    1.28%      • Level of growth
 Allentown-Bethlehem, PA      791,000    1.35%
                                                    • Size of population
 Richmond, VA               1,176,000    1.43%
                                                    • Diversity of economic base
 Raleigh-Cary, NC             950,000    3.83%
                                                    • Geography
 Charlotte, NC              1,521,000    2.87%
                                                    • Personal experience
 Jacksonville, FL           1,248,000    2.24%
 Sarasota-Bradenton, FL       673,000    2.82%

Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Key Drivers of Growth
Location                      Job Seekers       Retirees   “Cool” Place Syndrome   Relative Low Cost
Medford-Ashland, OR                                n                n                     n
Bend, OR                           n               n                n
Flagstaff, AZ                                      n                n
Albuquerque, NM                    n                                n                     n
Austin, TX                         n                                n                     n
San Antonio, TX                    n               n                                      n
Indianapolis, IN                   n                                                      n
Nashville, TN                      n                                n                     n
Knoxville-Oak Ridge, TN            n               n                                      n
Allentown-Bethlehem, PA            n
Richmond, VA                       n                                                      n
Raleigh-Cary, NC                   n                                n
Charlotte, NC                      n                                n                     n
Jacksonville, FL                   n                                n
Sarasota-Bradenton, FL             n               n                n


Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Target Industries for Future Growth

 Back Office/Shared Services
   Back Office/Shared Services
             Life Science/Biotech
          Life Science/Biotech
       Specialty/Advanced Mfg.
     Specialty/Advanced Mfg.
      Region/Corporate HQ’s
  Region/Corporate Headquarters
          Information Technology
       Information Technology
            Logistics/Distribution
          Logistics/Distribution
             Healthcare Services
           Healthcare Services
               Electronics/Optics
             Electronics/Optics
              Aviation/Aerospace
            Aviation/Aerospace
         Clean/Renew able Energy
            Renewable Energy
                                     0%     10%   20%   30%   40%   50%   60%   70%     80%



 Which industries have higher-paying jobs and will remain in the community into the future?


Moran, Stahl & Boyer
 Economic Growth: Survey of Growth Communities

 Biotech and Life Sciences




    Chemicals              Pharmaceuticals        Biomaterials      Pesticides




Electronic Equipment        Medical Instruments   Medical Devices      Bioinformatics



Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Techniques for Reaching Out to Existing Employers

          One-on-One Meetings
                   One-on-One M eetings


                          Newsletters
                               Newsletter


          Periodic Social Events
                    Periodic Social Events


            Seminars/Workshops
                Topical Seminars/Workshops


              Business Surveys
      Annual Survey of Needs/Business Climate

                                            0%   10%   20%     30%   40%    50%   60%    70%   80%    90%   100%

 Critical Questions:
 • Are they growing?
 • Any new products/services (R&D)?
 • How tough is the competition and
   where is it coming from?
 • What are their challenges?                                Employer interviews and plant tours are important
 • How can the community support them?                       ways to better understand your economic base.

 • Where are they in their life cycle?


Moran, Stahl & Boyer
           Economic Growth: Survey of Growth Communities

          Company/Product Life Cycle: Key to Understanding Opportunities

             Phase I                          Phase II                      Phase III            Phase IV
         Business Start-up      Rapid Market Growth Through Internal        Maturation &      Sustained Niche or
         & Product Rollout            Expansion and Acquisition             Consolidation    “Last One Standing”
Output




                                                                                  B

                                                                             A         C

                                                                                  D

                                                                 Time
         Start-up Capital      >      Labor/Facilities/Capital          >   Minimize Cost   >   Sustained Market
         Critical Decisions Made in Phase III
         A: Attempt to go back to Phase II (new market expansion/product improvements)
         B: Consolidate with competition to grow share in a shrinking market
         C: Go/stay private with niche operation and proceed to Phase IV
         D: Continue to enhance productivity to sustain margins (production improvements/cost takeouts)

          Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

The New “Work Ethic” . . . The Bar Has Been Raised


            Core “Soft” Competencies                        Advanced “Soft” Competencies

 • Punctuality . . . dependable                   • Work in teams but also independent thinker
 • Business etiquette . . . respect/discern       • Demonstrate creativity and innovation
 • Drive to succeed . . . focused/ethical         • Grasp critical thinking approach to problem
 • Commitment . . . hard work/time management       solving
 • Attention to detail . . . pursuit of quality   • Quick to learn new information and concepts
 • No drugs . . . testing is inevitable           • Attitude that readily adapts to change


        Core “Technical” Competencies                    Advanced “Technical” Competencies

• Math…integral to many industries                • College degree . . . technical and entrepreneurial
• Computer…Microsoft Office platform              • Industry specific. . . jargon and concepts
• Communication … written and verbal              • Special certifications . . . by discipline


 Higher skills required in order for companies to quickly adapt to rapidly-evolving markets.


Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Career: Vision > Motivation > Preparation > Outcome
                                  Vision: defining realistic opportunities and knowing how to
                                  achieve them.

                                  Motivation: personalizing options and having the ongoing
                                  support for success.

                                  Preparation: having the focus and discipline to meet
                                  requirements.

                                  Outcome: securing the best jobs and careers in the local
                                  marketplace.

    Student interest in participating in various career-related activities . . .
    • College and industry tours
    • Job shadowing
    • One-to-one contact with someone in career area
    • Internships



Moran, Stahl & Boyer
 Economic Growth: Survey of Growth Communities

Workforce Development Strategy



Facilitators                           On-Going Interface With Local Industry
• Econ. Dev. Staff              Labor Force Planning, Career Awareness/Trends, Internships, etc.
• WIB’s
• Local Industry
  Leaders
• Local Education          Elementary > Secondary                 > College        > Workforce
  Leaders                           Students, Parents, Educators, Prospective Employees, etc.

                          Evolving Developmental Needs . . . Part of Life-Long Learning:
                          Career Awareness, Technical Skills and “Soft” Skills


                           Ultimate Goal: Having a Labor Force at the Right Size, with
                             the Right Skills, and the Desire to Remain in the Region.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Techniques for Stimulating Entrepreneurial Activity


                Entrepreneurship
  Entrepreneurship Awareness
                   Aw areness
        Access to Low Interest
           Access to Low Interest
                 Loans/Grants
             Loans and Grants

 Business Plan Competition to
        Business Plan Competition
          to Win Start-Up Funds
          Win Start-Up Funds

            Courses Preparing
         Courses on on Preparing
               Business Plans
              Business Plan
            Low Cost Space and
         Low Cost Space and
          Incubators for Start-Ups
      Incubators for Start-Ups
                                     0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%


      Business mentorship, access to angel/venture capital, and awareness of local
      university patent commercialization opportunities are also important.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Entrepreneurial Index
                      Bend, OR

                  Charlotte, NC

                    Raleigh, NC

                     Austin, TX
                   Medford, OR

                Jacksonville, FL
                   Nashville, TN
                 Indianapolis, IN

                 Richmond, VA

               San Antonio, TX

              Albuquerque, NM

        Sarasota-Bradenton, FL
                   Knoxville, TN
       Allentown-Bethlehem, PA
       Allentow n-Bethlehem, PA

                                  0%   10%   20%   30%   40%   50%   60%    70%    80%    90%   100%
Developed by Advanced Research Technologies, LLC based on new company startups per 1,0000
workforce participants, change in the number of new business start-ups over a 10-year period, and
percent of smaller firms experiencing high growth.

Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Effective Economic Development Marketing Tools

                                                   Web site
                                                    Web site
            Direct letters to consultants and prospects
                 Direct letters to consultants and prospects
     Road trips to consultants, brokers and prospects
Road trips to visit visit consultants, brokers amd prospects
                           Industry-specific trade shows
                              Industry-specific trade show s
                 Use of PDF attachments dow nloading
 Use of PDF attachments on w eb site for easyon web site
    Familiarization trips for consultants, and prospects
  Familiarization trips for consultants, brokers brokers, etc.
  Real estate-related trade conferences/trade shows
                         Real estate-related trade show s
                        E-mail updates and newsletters
                           E-mail updates and new sletters
     Hard copy mailed updates, newsletters, magazines
  Hard copy mailed updates, new sletters and magazines
                   Advertising in selection publications
               Advertising in site site selection publications
                Advertsing in industry-specific publications
           Advertising in industry-specific publications

                                                                 0%   10%   20%    30%    40%   50%   60%   70%   80%   90% 100%

                                                                      Web Site-Related Tools
                                                                      Direct Communications
                                                                      Face-to-Face Activities
                                                                      Print Advertising




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Effective Economic Development Marketing Tools

n Web Site-Related Tools – Key information to include:
    > Contact information for the economic development staff
    > Community profile in PDF format that includes area resources and a list of
          employers with 100+ employees by industry; a discussion on target industries
    and resource profiles for each industry; available incentives as well as a list of
    updated        sites and buildings with basic details noted.


n Direct Communications
    > Both e-mail and hard copy materials receive only casual review by the reader
           unless the reader has some previous relationship with the community.
    > Communities send out hundreds of items a month and a consultant or commercial
         broker is typically deluged with information in this format.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Effective Economic Development Marketing Tools

n Face-to-Face Activities
    > Trade shows/conferences provide an opportunity for brief encounter
    > The road trips may provide 30 to 60 minutes of face time
    > Special conferences allow several days of potential encounters
    > Familiarization tours provide first-hand experience in community and multiple-days
      for discussions (precise planning and execution is critical to success)


n Print Advertising
    > Opportunity to reinforce a brand image or communicate a focused thought to
      a broad readership.
    > Keep in mind that most readers may give an ad one second or less to process
      unless there is a compelling reason to reflect longer or act on the message.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Two Most Important Things to Stimulate Economic Growth
    Strategy
• Stimulating Business Growth
   - Grow your own – both expansion of existing companies and new start-ups
   - Focus recruitment on targeted industries with emerging high quality jobs
   - Align recruiting efforts to capitalize on the unique assets of a community.


• Development of Resources to Support Economic Growth
   - Build the product capacity (buildings/sites, workforce, infrastructure) to facilitate growth
   - Train the region’s workforce for the businesses (industries) that will be growing
   - Maintain a “speed of business” model that addresses the needs and opportunities of the
     region’s businesses
   - Incentives are a strategic aspect of available resources (e.g., tax abatement/rebates,
     training support, other offerings)
   - Facilitate internal discussions (among stakeholders) to garner support for the
     development of a competitive product (community resource development).



Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Two Most Important Things to Stimulate Economic Growth
• Other Considerations
   - Have a focused strategy and the resources (people and finances) necessary to carry
     out the strategy
   - The regional marketing approach is a valuable asset for leveraging resources and
     building market awareness
   - Conduct a comprehensive marketing and business development campaign
   - Produce solid (accurate/timely) facts (statistics, available real estate, etc.) for prospects
     to make location decisions.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Two Most Important Things to Stimulate Economic Growth
        Relationships
  • Build strong relationships (partnerships) with existing local companies
    - Understand their needs and provide them and support their growth
    - Seek financial support from larger employers for economic development initiatives
      and access to HR functions for prospect/consultant interviews.
  • Sustain effective working relationships with local government agencies and assure
    they understand their role in the overall economic development process.
  • Educate the community (at large) on the need for economic development, the value
    businesses provide the local economy, and the need to stimulate and maintain a
    competitive business climate.
  • Host familiarization tours of the community for company prospects, consultants,
    brokers and other influencers as a valuable relationship-building tool.
  • Facilitate an on-going relationship between all local services and government
    agencies to present an effective and seamless team of resources to existing and
    prospective companies.
  • Develop a true regional economic development partnership and obtain buy-in from all
    stakeholders.


Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Reflections on Economic Growth

                             • Every community faces a crossroads at some time – in fact
                               multiple times. Those communities that are successful have
                               a group of stakeholders that pull together and help the
                               community recast a new economic strategy.
                             • High growth and no growth have their own unique but
                               separate challenges.
                             • Manufacturing is still a strong underpinning to many local
                               economies but every industry and company must deal with
                               their evolving life cycle issues.
                             • It’s OK to go “elephant” hunting for big projects but
                               remember that many jobs are provided through smaller
                               entrepreneurial companies.




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Reflections on Economic Growth




                                           “Without continual growth and progress,
                                           such words as improvement, achievement,
                                           and success have no meaning.”
                                           - Benjamin Franklin




Moran, Stahl & Boyer
Economic Growth: Survey of Growth Communities

Action Plan to Support Economic Growth

                              • Develop an objective evaluation of local resources that
                                support economic development.
                              • Determine an achievable target industry portfolio and
                                types of operations that provide the jobs and tax base
                                desired.
                              • Complete a labor force gap analysis that positions labor
                                resources to anticipate employer needs.
                              • Develop real estate resources at the level of readiness
                                required to support each type of operation.
                              • Prepare /implement a marketing and business
                                development strategy that targets each life stage
                                opportunity.




Moran, Stahl & Boyer
 John M. Rhodes, Senior Principal
           941.755.0041
 john.rhodes@msbconsulting.com



            MS&B
 Moran, Stahl & Boyer
Site selection and community economic development consultants.

								
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