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 firstname.lastname@example.org MS&B Moran, Stahl & Boyer Site selection and community economic development consultants.
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