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Green Building Industry Cluster StudyLeadership Team Meeting
December 2, 2015
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Leadership Team Meeting Agenda
I. Introductions – Leadership, Consultant Team
II. Why Green Building Focus?
III. Questions and Discussion
IV. Milestone Description and Research Model
V. Industry Cluster Roles and Responsibilities
VI. What is worth your time and talent?
VII. Milestone #1 Event Outline and Recruitment
VIII. Q&A – Discussion, Leadership Additions?
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Introductions and Project Structure
GreenBuildingrelatedopportunitiesintheSEVermontRegion Estimated5yearjobcreationpotentialDesigners,engineers,architects,researchersandproducttestingprofessionals 100SmallandMediumsizeEnterprise(SME)GreenBuildingManufacturing 75Systemsintegrationspecialistsandknowledgebrokersattractedtoco-locateintheregion 75Tourism/hospitalityemploymentassociatedwiththesponsorshipofhostedseminarsforindustryprofessionals,nationaleducationseminarsforleadersoflocalcommunitiesfromthroughouttheU.S.andindividualsvisitingtheregionseekingassistancewithdesigningtheirownneworretrofitbuiltenvironment
50
TotalEstimated5-yearGreenBuildingClusterCreation 300
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Why Green Building Focus?
• Asset mapping recognized a significant concentration of green building, knowledge, production capability and technology in Southern Vermont.
• The Green Building Industry Cluster has an opportunity to create a national center for green building technology, research, product development and services that will result in sustainable economic growth and high value job creation to replace and exceed the high wage jobs being lost in the closure of Vermont Yankee.
Initial Proposition Topics
National Green Building Systems Knowledge Center of Excellence
Finance, Insurance and Appraisal Services
International Relations and Export Opportunities
Research & Development, Manufacturing Services
Why where you asked to participate on the Leadership Team
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Generating a Industry Cluster Focus
RegionalEconomicAnalysis
GreenEconomyMarketAnalysis
GreenBuildingCluster Focus
RegionalIndigenousResources
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The SEVEDS region GB Cluster is a subset of the overall green, clean, low-carbon or environmental economy as alternately defined by the BLS, Navigant, Battelle, Brookings, etc.
For purposes of consistent definition, we are using the term Green to represent all of the above and Green Building to represent the subset of the larger Green economy or industry.
"The Green Building (GB) Cluster will focus primarily on the segments of the larger Green/Clean Economy that transform the existing or new built environment and its related land use into resilient, sustainable and green built communities.
This cluster will focus on research products and services that leverage the existing systems talent base of the region and expand this systems approach into a national center of green building systems, product development, service, research, design, knowledge exchange, education and training leadership."
Validate the Green Building Area of Focus
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Questions and DiscussionEconomic & Market Research
Initial PropositionsNational Knowledge Center Vision
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Formationü Benchmark the 4-county regional economy
ü Benchmark Green Building in the regional economy
ü Define the vision and brand identity of the GB Cluster
ü Agree on the key propositions to be hypothesis tested
ü Build the GB Cluster leadership team
ü Define its guiding principles
Asset Mapping & Researchü Complete asset mapping and leverage analysis
ü Test hypotheses for each GB Cluster proposition
ü Conduct primary and secondary market research
ü Identify priority niche markets to activate and/or expand
ü Define Strategies to address barriers to opportunity
Targeted Opportunityü Turn niche market research into business opportunity
ü Establish SMART Goals for each niche market and business opportunity
ü Finalize business plan for the National Green Building Knowledge Center of Excellence
ü Define GB finance, insurance and appraisal services
ü Recruit and establish action teams to act on the business opportunities
Green Building Industry Cluster Milestone Schedule
Report & Institutionalizeü Establish long-term performance metrics for economic impact
of the GB Cluster
ü Develop Implementation plan and roadmap for the GB Cluster
ü Define the finance ecosystem requirements to implement business plans
ü Launch business plan action teams to capture opportunity
ü Market plan results to develop, attract, retrain and grow GB Cluster talent and business opportunity
Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov
Milestone #1 Event Milestone #2 Event Milestone #3 Event Milestone #4 Event
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VE Seven Step Research Model
Issues of Challenge & Opportunity -> Data -> Information -> Knowledge -> Opportunity->Action
Step 1 - Characterize the primary issues of “challenge/opportunity” to be addressed?
Step 2 - Agree on hypotheses to be tested…no more than four, as well as research purpose.
Step 3 - “Data -> Information”- Conduct and document research..test against each hypotheses
Step 4 - “Knowledge” - Integrate and communicate findings, Describe the business opportunity and challengesList resource gaps
Step 5 - Identify and agree on next hypothesis to refine the opportunity, if required
Step 6 - “Opportunity”- Provide a summary business case from the research to direct action
Step 7 - “Action” – Recommend implementation plan with leadership and resources require
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Opportunity vs. Research Exercise
Industry clusters focus on the development of specific targeted action plans to create new economic growth that will produce jobs in accordance with a specific strategy that is connected to a defined goal.
Action Plan Template1. Name of project 2. Team leader and members3. Brief project description4. How does the action help to achieve the goals?5. Collaborators that will be involved to realize success6. Timeline including milestones to completion7. Target markets/customers, Primary, Secondary 8. Economic value/impact9. Budget: funding sources, revenues, expenditures10. Barriers and resolution strategy
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What is an Industry Cluster in a Regional Economy?
• The foundation of a regional economy is a group of clusters, not a collection of unrelated firms. The firms in a cluster have common competitive strengths and needs, share common markets, factors of production, infrastructure and workforce.
• Successful industry clusters are not passive forces in the economy, but consist of active agents who organize resources and actively refine the business environment to be highly efficient and effective in their pursuits
• Clusters are the key organizational unit for understanding and improving the performance of regional economies
• Cluster teams are catalysts….• To provide the vision and leadership• To assess and prioritize opportunities• To link resources, internal and external• To transform regional economies
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1. Be “Champions of the Green Building Industry Cluster”• Promote and communicate the initiative vision, work plan and activities
2. Lead key participant recruitment• Actively evaluate participation levels and make personal invitations to
key leaders that will bring value to cluster or populate action teams
3. Provide guidance and direction• Oversee industry cluster activities at the regional level. • Make key decisions regarding resources and strategic direction
4. Participate (and chair) mapping or action teams• Contribute input and analysis to asset mapping • Lead action teams pursuing new economic opportunities
5. Provide important intel and analysis of information and data• Provide proactive insight and expertise to the research activities• Identify key industry knowledge leaders for research team to interview
What is the Role of Cluster Team Leadership?
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What is worth your time and talent?
What outcomes do you want to see by November 2016?
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Milestone #1 Agenda and Logistics
I. Welcome & IntroductionII. Industry Cluster Opportunity Analysis DescriptionIII. Regional Economic BenchmarkIV. National, Global Green Building Market HighlightsV. BREAK – Room ChangeVI. Breakout Sessions
Ø GB Knowledge CenterØ GB Product, Services, R&D and Manufacturing
Ø GB FIRE SolutionsØ GB International Opportunities and Relationships
VII. Report OutVIII. Next Steps and Milestone #2 Descriptions
Session AgendaLocation
Date
Time
Wednesday, December 9th
3:00 PM – 5:00 PM
Attendance50 - 60
Who are the key regional Green Building leaders that must be in attendance?
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Questions and DiscussionLeadership Team Additions?
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Backup Slides
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A. Jobs in businesses that produce goods or provide services that benefit the environment or conserve natural resources.
• Energy from renewable sources• Energy efficiency• Pollution reduction and removal, greenhouse gas reduction, recycling, reuse• Natural resource conservation• Environmental compliance, education and training, and public awareness
B. Jobs in which workers’ duties involve making their establishment’s production processes more environmentally friendly or use fewer natural resources.
• Energy from renewable sources• Energy efficiency• Pollution reduction and removal, greenhouse gas reduction, recycling, reuse• Natural resource conservation
Bureau Labor Statistics Green Jobs Definition
Economic Research and Analysis
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Validate the Green Building and Services Market Focus
Brookings-Battelle Category Brookings-Battelle Detailed Segments
Agricultural and Natural Resources ConservationOrganic Food and FarmingSustainable Forestry Products
Education and Compliance Regulation and ComplianceTraining
Energy and Resource Efficiency AppliancesBattery TechnologiesElectric Vehicle TechnologiesEnergy-saving Building MaterialsEnergy-saving Consumer ProductsFuel CellsGreen Architecture and Construction ServicesHVAC and Building Control SystemsLightingProfessional Energy ServicesPublic Mass TransitSmart GridWater Efficient Products
Source: Sizing the Clean Economy: A National and Regional Green Jobs Assessment, 2011
Economic Research and Analysis
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Brookings-Battelle Category Brookings-Battelle Detailed Segments
Greenhouse Gas Reduction, Environmental Air and Water Purification Management, Technologies and Recycling Carbon Storage and Management
Green Building MaterialsGreen Chemical ProductsGreen Consumer ProductsNuclear EnergyPollution ReductionProfessional Environmental ServicesRecycled-Content ProductsRecycling and ReuseRemediationWaste Management and Treatment
Renewable Energy Biofuels/BiomassGeothermalHydropowerRenewable Energy ServicesSolar PhotovoltaicSolar ThermalWaste-to-EnergyWave/Ocean PowerWind
Validate the Green Building and Services Market Focus – cont.
Source: Sizing the Clean Economy: A National and Regional Green Jobs Assessment, 2011
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ü Renewable Energy Generation
ü Transportation
ü Energy Efficiency
ü Green Construction
ü Energy Trading
ü Energy and Carbon Capture and Storage
ü Research, Design, and Consulting Services
ü Environment Protection
ü Agriculture and Forestry
ü Manufacturing
ü Recycling and Waste Reduction
ü Governmental and Regulatory Administration
Green Economy Employment Segments
Let’s determine the areas of focus for the Green Building
Cluster?
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What is the Strategic Role of SeVEDS Leadership?
Take charge of your regional economy moving it in a new direction through the use of Asset Based principles
1. Create sufficient regional commitment to create “critical mass” of participation and resources
2. SeVEDS is the “key” regional economic development strategy
3. Secure and celebrate true collaboration and resource sharing behavior
4. Achieve alignment of public, private and non-profit sectors to a common strategic economic direction
5. Recognize and pursue the characteristics of a Knowledge Based Economy
6. Create a “culture of innovation and entrepreneurship”
7. Adopt a measurable economic vision of the future and analyze progress
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Green Building Industry Cluster Goals by 2018
Goal #1: Reverse Population Decline• Increase population to 46,266• Increase proportion of 25-44 year olds to 25% of population• Double the percentage of foreign born resident to 7% of population
Goal #2: Increase the Number of Well Paying Jobs• 1,054 jobs @ $46,340• 702 jobs @ $42,130• Increase wages of 4,650 by $5,000 per year• Increase median income for associates/some college to $32,328• Increase median income for bachelors degrees to $40,597
Goal #3: Improving Workforce Quality• Increase associate degrees/some college and technical certificates
among 18-24 year olds
Goal #4: Raising Household Income Relative to Surrounding Areas• $174M in new wages• $470M in new GDP• Improve the ratio of new earned income to total income to .65
• 300 high paying jobs in 5 years, • 180 > $46,340• 120 > $42,130
• # of Associates and technical degrees of 18-24 year old workers
• New regional GDP, TBD once new business opportunities are identified
• $ of new export value• # of talent workers attracted• # of visitors attracted• Increase wages of 790 by
$5,000/year• 4 niche markets• 9-12 new business opportunities• 4 green building action teams• Connection to 3 community
economic development initiatives
Green Building Industry “Initial” Cluster Goals
CEDS 2018 Goals
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Framework: Industry Cluster Team Guiding Principles
1. Industry cluster leadership and participation are key to generating outcomes
2. Work plan discipline insures completion all elements of each phase, is key to achieving success
3. Trust and respect is required between companies and individuals
4. Collaboration is recognized as a key to achieving regional goals
5. Uncovered opportunities will immediately have action teams assigned with leadership that accepts ownership of the opportunity.
The Vital Economy Industry Cluster approach achieves measurable results through the recognition and adoption
of key principles that insure measurable success
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Example: Hypothesis TestingRenewable Energy Industry Cluster Hypothesis TestingPremise: Energy costs to Aroostook residents and business sector is an extraordinary burden that places
the region at a disadvantage relative to New England.
Proposition: The Renewable Energy Cluster can address this burden with locally available resources while creating and retaining jobs, inducing wealth creation/retention in the region, and contributing to the realization of the Mobilize Maine vision and goals for Aroostook County.
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Three Initial Hypotheses
1. Establishing a National Green Building Systems Knowledge Center of Excellence for the sustainable and resilient built environment that attracts talent, businesses, investment and visitors.
2. The region can achieve increased exports, higher wages and new employment by focusing on green building and energy research, product development and manufacturing with a systems rather than a component focus.
3. The green building markets have a barrier in finance, assessment and appraisal services. The GB cluster can develop creative finance solutions designed to accelerate adoption of green building products and services across the US, creating high wage financial services jobs in the region.
Regional Issues1. Closure of VY – 600 high wage jobs2. Low percentage of earned income3. Low wages parity within the laborshed4. Overall population decline
Regional Opportunities1. Concentration of nationally linked individuals and
entities in the green building and services sector2. Vermont has a strong culture, reputation and brand
in sustainable living and products
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Who are “the right people to get on the bus”?
Build the Best Team:Region Economies Need
Level 5 Leaders
Level 5 Leader Characteristics:• Personal humility
• Professional will
• Ambitious for prosperity
• Results driven
• Workmanlike diligence
• Responsible for themselves & others
Source: “Good to Great”, Jim Collins
Level 5 leaders exist in every region; Hint: look for results where individuals do not step
forward to take credit
Level 5
Level 4
Level 3
Level 2
Level 1
Executive LeaderBuilds enduring greatness through a paradoxical blend of personal humility and professional will
Effective LeaderCatalyzes commitment to add vigorous pursuit of a
clear and compelling vision, stimulating higher performance standards
Competent ManagerOrganizes people and resources toward the
effective and efficient pursuit of the predetermined objectives
Contributing Team MemberContributes individual capabilities to the
achievement of a group objectives and works effectively with others in a group setting
Highly Capable IndividualMakes productive contributions through talent,
knowledge and good work habits
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Source: Purdue Center for Regional Development
ViTAL Economy Industry Cluster DefinitionAn Industry Cluster should establish core value linkages both within and across industry sectors. These linkages creatively leverage the indigenous strengths of a region. Clusters are assessed and prioritized in a collaborative process which insures that the critical challenges and opportunities of a region are continually addressed.
Support IndustriesR&D Specialized
Infrastructure
Education & Training
Government Regulator
Suppliers CustomersIndustry Drivers
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Leadership Team 1.Visionary leadership2.Strategic design, direction & progress assessment 3.Secure and deploy resources as required4.Review and adopt regional and industry goals5.Create and lead action teams6.Co-chairs of industry cluster teams
Roles, Responsibilities and Benefits of a Regional Industry Engaged Framework
Role & Responsibilities Benefits
CED Professionals1.Provide expert guidance and analysis, 2.Coordination and facilitation of action teams3.Federal/State liaison,4.Information & research resource
• Personal, professional growth, capacity in regional economic development
• Expansion of industry leadership• Strategic thinking, cross cluster possibilities• Quick impact on the regional economy
• First in line for industry research and business analysis
• Chance to be first mover on business opportunities
• Ability to lead and direct topics and priorities that directly benefit your business
• Personal, professional growth, capacity in regional economic development
• Expansion of leadership capacity• Strategic thinking and cross cluster analysis
Industry Cluster Teams1.Critical regional industry knowledge and intel2.Establish industry specific goals linked to regional goals3.Recruit key industry cluster leaders 4.Participate and be knowledge experts on action teams5.Provide recommendations to the leadership team
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Green Building Industry
Human Resources
Natural Resources
Building Products
Energy Systems
Research & Design
Center of Knowledge
Industry Networks &
Infrastructure
Vermont Brand!
Roofing – Panels – Wall coverings – Home kits Beams – Window Frames – Treated Wood
üSolar
üDistrict Heating Systems
üWaste Heat
üCo-Gen
üBiomass
üEnergy Management Systems
Green Building Products Market
Green Building Industry Cluster Ecosystem
Construction & Service Providers
üWorkforce Develop
üEducation
üMarket Research
Green FIRE