2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE€¦ · 2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE...

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2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE

ECONOMIC DEVELOPMENT MARKETINGSeptember 10, 2019

STRATEGY MATTERS

2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE

ECONOMIC DEVELOPMENT MARKETINGSeptember 10, 2019

TODAY’S AGENDA

TODAY’S AGENDAWhat to expect

• Introductions

• Overview of Traditional Economic Development

o Site selection process and key EDO success factors

o Branding and industrial marketing

• Economic Development Reimagined

o The “New” Three Legs of the Stool

o Impact on EDO’s Marketing

INTRODUCTIONSA Little Bit About You

• Name

• Organization

• What you want to learn about Economic Development Marketing and Attraction

ABOUT ADY ADVANTAGE

THE ADY ADVANTAGE ECOSYSTEM

Economic Development Organizations

Understand a region’s and community’s economic assets

Businesses

Understand what makes business

competitive

ADY ADVANTAGE AREAS OF EXPERTISEIssues We Help EDOs Address

ADY ADVANTAGE AREAS OF EXPERTISERepresentative Clients

THE SITE SELECTION PROCESS AND KEY EDO SUCCESS FACTORS

SITE SELECTION PROCESS

• The traditional three legs of the stool of Economic Development

• BRE versus

• Business Recruitment

• Business Start-Up

• Industrial versus commercial versus retail

• Primary jobs versus secondary jobs

Key Concepts

THE SITE SELECTION PROCESS

Reverse engineering the “funnel of doom”

THE SITE SELECTION PROCESSQuestion for the audience

THE SITE SELECTION PROCESSCategories of location criteria

• Operating costs

• Operating conditions

• Quality of life

THE SITE SELECTION PROCESSExamples of Location Criteria

Operating Costs Operating Conditions Quality of Life• Labor

• Utilities

• Electric

• Gas

• Water

• Sewer

• Fiber

• Occupancy

• Incentives and Taxes

• Transportation

• Labor productivity

• Labor availability

• Labor-mgt. relations

• Electric reliability

• Electric redundancy

• Electric ability to service

• Availability of sites and buildings

• Suitability of sites and buildings

• Availability of incentives

• Availability of job training

• Recruitment assistance

• Interstate access

• Rail access

• FTZ status

• Etc.

• Quality of K-12 education

• Colleges/universities

• Healthcare quality

• Availability of housing

• Housing cost

• Housing diversity

• Cost of living

• Trailing spouse opportunity

• Cultural amenities

• Recreational amenities

• Etc.

THE SITE SELECTION PROCESSDrivers to relocating or expanding

Conclusions and Implications

1. There is a chance to influence which states or regions the company and site selector includes in its initial set of locations.

Conclusions and Implications:

2. Every project starts with a search for an available site and/or building.

3. Using data that shows regional assets, not just those in your specific community, can help your community from getting eliminated.

4. There are two times a site selector will visit your website; your website’s E.D. data and how it is organized should mirror this process.

5. Site selectors use state, utility and/or regional ED partners to serve as the point of contact.

6. Ninety percent of an RFI response can be anticipated.

7. Communities should work with their utilities to have service, capacity, and cost information available for the main industrial sites in its service territory.

8. Confidentiality is a given for site selection projects.

9. Project urgency is driven by the companies.

10. Stakeholders – Board members, elected officials, and the like – can make or break a site visit.

ECONOMIC DEVELOPMENT MEGATRENDS

THREE ECONOMIC DEVELOPMENT MEGATRENDS

WHAT’S DRIVING IT?• Avoidance of surprises

• Competitiveness of economic development field

• Accelerated project timelines

Megatrend #1: Elimination of Risk

THREE ECONOMIC DEVELOPMENT MEGATRENDSMegatrend #1: Elimination of Risk

IMPLICATIONS FOR ECONOMIC DEVELOPMENT ORGANIZATIONS• Increasing importance in certain location criteria:

o Availability and productivity of people at various skill levels

o The fiscal position and stability of regulatory/policy platforms at the city/town, county, and state levels

o The long-term cost and availability of water, electricity, and natural gas

• Increasing importance in programs that reduce uncertainty, such as:

o Certified Sites programs

o Clearly defined zoning and permitting processes

o Workforce recruitment assistance

“The antidote to risk is readiness and alignment.” Janet Ady1

“The antidote to risk is readiness and alignment.” Janet Ady

Also known as “DIRT IS NOT A SITE!” Janet Ady

“The antidote to risk is readiness and alignment.” Janet Ady

THREE ECONOMIC DEVELOPMENT MEGATRENDSMegatrend #2: Economic Development Ecosystems

WHAT’S DRIVING IT?• Availability of data

• Better reflection of labor pools than either state or local jurisdictions

• Close enough to know the local operating environment, yet distant enough to be able to offer a single point of contact

“Regionalism does not mean homogeneity. It means just the opposite: celebrating differences with the region.”

Janet Ady

Megatrend #2: Economic Development Ecosystems

REGIONAL

You’re only as strong as the ecosystem in which you operate when trying to attract a project.

REGIONAL

You’re only as strong as the ecosystem in which you operate when trying to attract a project.

Each state, regional, and local EDO has its own interdependent role.

THE ECONOMIC DEVELOPMENT ECOSYSTEM

www.AdyAdvantage.com/See-Value-Strong-Economic-Development-Ecosystem/

THREE ECONOMIC DEVELOPMENT MEGATRENDSMegatrend #2: Economic Development Ecosystems

IMPLICATIONS FOR ECONOMIC DEVELOPMENT ORGANIZATIONS• Some searches now start at the regional level

o Have to wave the flag for the whole state

o LEDOs need to treat the region, state, and utility ED organizations as “customers”

• Always think in terms of the pooled assets from throughout your region

• For most locals, most leads will come from their regional, utility, or state partners. Those locals who treat these entities as customers will be at an advantage.

• The locals will always be at the table at the end of the day

THREE ECONOMIC DEVELOPMENT MEGATRENDSMegatrend #3: Increasing Competition

WHAT’S DRIVING IT• The maturation of the economic development field

• The increased sophistication of relocating/expanding companies, especially as incentives have proliferated

• A limited pool of relocating and expanding companies

• The increased sophistication of relocating/expanding people, especially as information available online has proliferated

• A limited pool of skilled, talented workers

IMPLICATIONS FOR ECONOMIC DEVELOPMENT ORGANIZATIONS

• Increased emphasis on Business Retention and Expansion (BRE) programs

o Your BRE program is your best defense against a competing region’s business recruitment program

o How you treat your current businesses is the best indicator of how you’ll treat my client

• Avoid the most common fatal flaws – workforce, product, costs

• Need to develop talent strategies and to integrate them throughout your ED strategic plan

• Community image and reputation matter

• Knowing your value proposition is key – to people and to companies

• Branding to communicate your value proposition sets you apart

A COMPETITIVE ENVIRONMENT FOR ED COMMUNICATIONS

Total: 7,070 emails

MEGATREND IMPLICATION

Minimizing Risk AlignmentReadiness

ED Ecosystems Regionalism

Increasing Competitiveness Differentiation

TRADITIONAL ECONOMIC DEVELOPMENT: BRANDING & INDUSTRIAL MARKETING

TRADITIONAL ECONOMIC DEVELOPMENT

Need to differentiate your community beyond “a great place to live, work, and play.”

Why Branding?

Over 5 billion results!

How do you differentiate your community?

• You start with a realistic understanding of “who you are” – what you have that is different than other places and valued by your target audiences.

• You address any explicit or implicit misperceptions of your community, region or state.

• You communicate from a basis of authenticity.

• And after you have done those steps, you define your branding/marketing goals and strategies.

How to Do Economic Development Branding

“If you do not know what your community’s brand is, then I don’t, either, and I don’t have the time to figure out what it is.”

- Dennis Donovan, Founding Member, Site Selectors Guild

What you do not do when branding or rebranding your community, region, or state, using building a house as an analogy.

• Think about branding as just a logo or a campaign. The analogy would be thinking that getting new throw pillows on your sofa will provide the same benefits as a redesign of the house.

• Think about branding as just a fresh coat of paint on an old house. If the flow of the house and the number of bedrooms did not work before the paint, a new paint job won’t solve those fundamental problems.

• Create a new brand that does not have enough of a footing in reality – i.e., creating a “dream house” that doesn’t resonate with the community you are trying to represent, the audiences you are trying to reach, or the programs you have to offer.

• Trying to use the exact same brand for business development, talent recruitment, visitors, and residents.

How Not to Do Economic Development Branding

TRADITIONAL ECONOMIC DEVELOPMENTSample Brand Positioning

TRADITIONAL ECONOMIC DEVELOPMENTSample Logo and Brand Board

TRADITIONAL ECONOMIC DEVELOPMENTSample Website

TRADITIONAL ECONOMIC DEVELOPMENT Marketing Plan Outline

Part One (narrative)

Situation Analysis

Marketing Goals

Marketing Strategies

Part Two (grid)

Marketing Strategies

Tactics

Timeline

Budget

Metrics

INSIDER TIP: THE THREE M’s

The three key questions every marketing plan must address:1. Markets – who you are trying to reach2. Messages – what each audience cares about3. Media – how you are going to reach each

audience with your messages

TRADITIONAL ECONOMIC DEVELOPMENT How to Sequence Marketing Tactics

MARKETING TO SITE SELECTORS

DRIVERS AND TRENDS: FROM NOW TO THE FUTURE

ABOUT U.S. SITE SELECTORS

MARKETING TO SITE SELECTORSAbout U.S. site selectors

• 2,000 commercial realtors, lawyers, and others who do some site selection projects

• 200 who regularly work on site selection projects

• 44 who are members of the Site Selectors Guild

• Numerous other organizations who connect EDOs to site selectors

MARKETING TO SITE SELECTORSDrilling down

• Site Selectors tend to work with larger businesses

• They tend to have their areas of expertise

o Geography

o Industry

o Piece of the value chain

• Site selectors are a mix of:

o “Single shingles”/boutique firms

o Those affiliated with a commercial real estate firm

o Those affiliated with a tax/accounting/strategy consultancy

o Those affiliated with a design/build/engineering firm

MARKETING TO SITE SELECTORSStart with a marketing plan

MARKETING TO SITE SELECTORSConsiderations in reaching site selectors

• How many of you directed marketing activities to site selectors in 2017? Why or why not?

• What was most/least effective and why?

ECONOMIC DEVELOPMENT MARKETINGHow to Reach Site Selectors

Consultant Visits and Familiarization Tours

Lead Gen

PrintCollateral WebsiteVideos

DirectMarketing

Social Media

MARKETING TO SITE SELECTORSWebsite content needs

CHARACTERISTICS SITE SELECTORS THINK ARE IMPORTANT

MARKETING TO SITE SELECTORSWebsite content gaps

CHARACTERISTICS EDOs THINK ARE IMPORTANT

MARKETING TO SITE SELECTORSIf there were one piece of advice you would give to communities/regions/states trying to market to site selectors, what would that be?

ECONOMIC DEVELOPMENT REIMAGINED

ECONOMIC DEVELOPMENT REIMAGINEDFactors Impacting the Location Decision Process

ECONOMIC DEVELOPMENT REDEFINEDAccess to Talent

The availability of talent has become the most important location criterion for site selectors and companies.

ECONOMIC DEVELOPMENT REIMAGINEDSummary: Changes in Location Decision-Making Process

• Site selectors’ have adapted to this new reality by placing more emphasis on Talent and Quality of Place and assessing these factors earlier in the process.

Earlier, deeper assessment of:• Availability of talent• Barriers to talent

(housing, childcare, transportation, things to do)

IMPACT ON E.D. MARKETING

ECONOMIC DEVELOPMENT REDEFINED

Impact on ED Marketing

How to be successful at ED marketing has also changed fundamentally. Every key element of marketing has changed:• The audience has expanded from primarily businesses to also individuals

looking to relocate or expand (which in turn attracts businesses).• What is important to each audience – the key messages – has also changed.• And how to reach audiences has changed, with social platforms providing the

opportunity for the 1:1 sharing of information, for better or worse.

Therefore, successful ED marketing today has new requirements for success.

Traditional Reimagined

ECONOMIC DEVELOPMENT REDEFINEDImpact on E.D. Marketing

Individuals’Location Criteria

Site Selector/CompanyLocation Criteria

Then N/A• Operating Costs• Operating Conditions• Quality of Life

Of the Community• Welcoming• Inclusive and diverse• Basics in place:

housing, transportation, childcare

• Vital –things to do

Of a Company• Welcoming• Inclusive and diverse• Flexible• Authentic,

transparent

Of the Place• Availability and productivity of

talent• Quality of Place – culture as well as

housing, education, etc.• Operating Costs• Operating Conditions

In the past, site selectors and the companies they advised were the decision makers. • Today, individuals have their own location criteria that must also be satisfied by the

communities they live in and the companies they work for. • Site selectors’ location criteria have adapted to this new reality by placing more

emphasis on Talent and Quality of Place and assessing these factors earlier in the process.

ECONOMIC DEVELOPMENT REDEFINEDImpact on E.D. Marketing

Individuals’Location Criteria

Site Selector/CompanyLocation Criteria

Then N/A• Operating Costs• Operating Conditions• Quality of Life

Of the Community• Welcoming• Inclusive and diverse• Basics in place:

housing, transportation, childcare

• Vital –things to do

Of a Company• Welcoming• Inclusive and diverse• Flexible• Authentic,

transparent

Of the Place• Availability and productivity of

talent• Quality of Place – culture as well as

housing, education, etc.• Operating Costs• Operating Conditions

In the past, site selectors and the companies they advised were the decision makers. • Today, individuals have their own location criteria that must also be satisfied by the

communities they live in and the companies they work for. • Site selectors’ location criteria have adapted to this new reality by placing more

emphasis on Talent and Quality of Place and assessing these factors earlier in the process.

Traditional E.D. Marketing FocusE.D. Reimagined Marketing Focus

Greater New Orleans business development website Greater New Orleans talent development website

Impact on EDOs

Implication #1: Two distinct audiences: businesses and people.EDOs now need to develop marketing communications that reach two distinct audiences: site selectors/companies and talent. This is in addition to internal stakeholder audiences. This means a larger budget is required.

Greater New Orleans business development website Greater New Orleans talent development website

Impact on EDOs

Implication #2: Different, but not inconsistent, branding and key messages.Individuals care most about factors such as housing and transportation, along with the vitality and welcoming-ness of the community.

Businesses care about availability and productivity of talent, along with operating costs, operating conditions, and quality of place factors.

The ED marketers challenge is to satisfy both without being inconsistent.

Impact on EDOs

Implication #3: Consistency in branding and messaging is key.Audiences can overlap from their intended channels of communication to unintended channels of communication. This is enabled by technology but also by individuals’ interest in uncovering the authentic personality of a community.

Some Considerations:• The “sharing economy” extends to a community’s brand: no one entity can

“control” a community’s brand anymore.

• Transparency and authenticity dictate that your community can’t be something it is not. Instead, focus on what the community is, what it wishes to become, and how it is going to get there.

• Anticipate what to do when things “go rogue.” This also means adopting strategies to counter rogue messaging.

Impact on EDOsImplication #4: Technology makes your job easier and harder.On the one hand, ED marketers now have at their fingertips access to tools like automated marketing, website tracking, multiple social media channels, and in-depth analytics.

On the other hand, so does everybody else, and so being smarter in how to deploy these tools is more important than ever. The challenge becomes how to differentiate your community’s assets among thousands of competitors.

Some Considerations• Strategy matters more than ever. The technology to build your website, for

example, is a commodity. What differentiates you is the content and how you leverage the technology to position your community and drive action.

• Data is the means to an end not the end in and of itself. We are beyond data for the sake of data, and even infographics are insufficient. ED marketers need to tell their story, and for that they need to understand their brand.

• It’s about your brand. And if you don’t know what your brand is, nobody else will either.

THANK YOU

608.663.9218

jady@adyadvantage.com

www.linkedin.com/in/janetady/

Blog and newsletter at www.adyadvantage.com

Midwest Talent Strategy InnovationPublished July 2019

Talent Toolbox for Economic DevelopersPublished February 2016

Rural Economic Development ToolboxPublished September 2014

2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE€¦ · 2019 WEDA BASIC ECONOMIC DEVELOPMENT COURSE...

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