Page 1

CLUSTER MAGIC:

Creating Synergy

for Business and Workforce

Kathy ZavalaStearns-Benton Employment & Training Council

Tom Moore & Henry FischerSt. Cloud Area EconomicDevelopment Partnership

Page 2

BACKGROUND

Page 3

PURPOSE & VISION

• Purpose: To coordinate

strategies for enabling the

vision and to coordinate

the efforts for promoting

prosperity in Central

Minnesota.

• Vision: Prosperity in

Central Minnesota.

Growth is not the same

as prosperity. Growth

is only desirable

(“strategic”) if the

standard of living rises.

Workforce Development

Community Development

BusinessDevelopment

Human Services

Development

EconomicDevelopment

Page 4

PSG TIMELINE

• Over the past several years, the team of

partners has conducted extensive regional

workforce, social service, and economic

research and has targeted specific

industries and occupations that are

positioned to create results.

• The first three phases of the project

included organization, baseline data

collection, determining strategic industries

and initiating related initiatives to build.

• Working to align organizations in the

community has been a consistent goal and

task.

• Communications have included:

– Community Assessment (2002)

– Two Community Summits (2004,

2005)

– Co-sponsor 7 Revolutions

Conference (2007)

– Website presence (2003-present)

– Various Email Campaigns

– Numerous reports to Partner

Organizations

– Email update summer of 2008

Phase I

Public Partner Conduct the Community Assessment and

Strategic Industries (SI) Chosen

* Gathering Public Partners

* Community Assessment* Community Input on the SI

Phase II

Strategic Industry Forums and Initiatives Formed

* Engaging Private Partners

* Learning about the SI* Initaitives around each SI

Phase III

Resource Mobilization and Action Implementatin --

Initiatives

* Aligning Public & Private Partners

* Engaging Resources* Initiative Support

2002 - 2007

Partners for Strategic

Growth is an initiative

in Central Minnesota

to enhance positive

growth in the

community by growing

strategic industries

and building the 7

Forms of Capital.

Page 5

GOALS

Elements of an Effective Region (from the Council on Competitiveness):

• A shared economic vision

• Strong leadership

• An over-arching organization for economic development

• Broad-based collaboration

• Rigorous analysis, and clear action steps

• Strategies for dealing with economic transitions

In addition, local leaders have challenged the Partners to:

• Bring the right people to the table to discuss and work on various aspects of this work (engage the region’s public and private leaders in an “ongoing dialogue”

• Work to develop the on-going vision for the community, in terms of prosperity and what it will take to have a vibrant economy in the years ahead.

• Oversee the structure and sustainability of the effort

• Be the “keepers of the dream”

Regions around the world

have developed

public/private partnerships to

coordinate economic strategy

at a regional level – the place

where the Council suggests

this work needs to happen,

as regions are the building

blocks of the global economy.

Page 6

BUILD STRATEGIC INDUSTRIES

STRATEGIC INDUSTRIES

ILLUSTRATIVE INITIATIVES

AFFILIATED/ SUPPORTING ORGS

ManufacturingManufacturing

Partnership

Workforce Council; BCEDC; the Partnership; the Chamber Higher Ed. Institutions, Private Sector Advisors, and others

Printing & Publishing

Support of the Printer’s Association

Workforce Council, Higher Education, and others

Engineering and Management

Business Services Partnership to be

developed

Workforce Council, SCSU, AEC, and others

Health – Science Based Industries

Science Initiative of Central Minnesota

CentraCare, Chamber, the Partnership, Initiative Foundation, Higher Ed. Institutions, and others

Business ServicesBusiness Services Partnership to be

developed

Workforce Council, Higher Education and others

The Strategic Industries

(SI) were chosen by the

community as areas to

focus, based upon their

potential for growth and

high wages in the region.

See also: 2002

Community Assessment

for the detailed process

and definitions.

*Note: In the Health Industry, the decision was made to focus on Science Based Industries, as a growth strategy, since the health care delivery side is so well established in the region.

Also note that additional Affiliated Organizations will be added with new and more recent collaborations...

Page 7

BUILD STRATEGIC INDUSTRIES

Strategy Principles:

1. We must focus on building the strategic industries in the region, not at the neglect of other

industries, but as a means for strategic growth.

2. We must cultivate an environment that is conducive to starting, growing and expanding businesses.

A strong entrepreneurial environment is important for growth and innovation.

3. We need to look more closely at cluster development, and use it as a tool for development.

Initiatives:

– Retention and Expansion• Build public sector awareness of private sector needs in the region, by working with the

Partnership and the Chamber and other relevant organizations

– Innovation and Start-up• Support Entrepreneurship through the Anderson Entrepreneurial Center, Small Business

Development Center and other relevant organizations• Enhance the business mentor program through SCORE• Support transfer of knowledge and strengthen connection with and through the universities

– Recruitment and Marketing• Coordinate a Task Force for recruiting strategies, working with Marketing Central MN initiative

– Cluster Development• Continue to foster cluster development, including building of associations (like the

Manufacturing Partnership) and sharing data (as ENS) working with the WFC, Partnership, Chamber, and the like...

Page 8

BUILD THE 7 FORMS OF CAPITAL

FORM OF CAPITAL

WORKING DEFINITION EXAMPLESILLUSTRATIVE

INITIATIVESAFFILIATED/

SUPPORING ORGS

Natural Endowments

The existing resources in a region, such as raw materials.

Agriculture, Rivers Granite, Lakes

• Granite Country • Lake George Project

St. Cloud CVB, St. Cloud Rotary, & Granite Industry

InfrastructureThe man-made structures in a region for power, transportation, communication, and the like.

Roads, Airports Telecommunication, Internet

• Marketing Central MN• Northstar II

The PartnershipArea Planning OrgChamber – Executive Dialogue

FinancialThe financial systems, both public and private wealth, that support the region.

Banks, Venture/ Equity Capital, Tax

• Innovative Financing Network

Initiative Foundation, Banks, Granite Equity Partners

Institutional

Governance and organizations in a region, along with clusters of related and supporting industries that enable the economy.

Chamber of Commerce, Unions,

Cluster Collaboration

• Cluster Associations• Science Initiative of CM

Chamber, SICM,Workforce Council-Clusters

Human

The health and education of a local population.

Primary, Secondary, Technical Education

Workforce Development

• Success by 6• Adult Training

WFC, SBETC, United Way of CM, SCTC, Create CommUNITY and others

Cultural/Social

The connectedness, trust, and norms within a region. Includes long-term thinking, & the like.

Trust, Long-term thinking Architecture, Music Connectedness

• Social Capital Initiative

Central Minnesota Community Foundation, Create CommUNITY and others

Knowledge

Knowledge generation and sharing, including frameworks and concepts, qualitative and quantitative data.

Research and Dev, Sharing of Information

Universities

• Business Mentor Initiative• Entrepreneurial Center

AEC, SCORE, SBDC, SCSU, CSB/SJU, etc.

Note: additional Affiliated Organizations will be added with new and more recent collaborations...

Page 9

IMPACT

Page 10

ACTION AGENDAS

REGIONAL AND LOCAL GOVERNMENT

• Strongly support K-12 education

• Upgrade core business infrastructure (transportation, communications, specialized training)

• Develop a regional strategy that involves all stakeholders

• Encourage cluster development

Source: Clusters of Innovation: Regional Foundations of U.S. Competitiveness

HIGHER EDUCATION INSTIUTIONS

• Recognize the important role of higher ed. institutions in regional economic development

• Create and support technology transfer departments

• Actively participate in cluster development efforts.

• Align curricula and research to meet the needs of local clusters

• Support company start-up efforts through mentorship, entrepreneurial, education, financing...

CLUSTER SPECIFIC INSTITUTIONS FOR COLLABORATION

• Promote cluster awareness

• Engage in ongoing diagnosis of cluster’s competitive positions

• Develop training and management programs

• Actively participate with government in recruitment efforts

• Widen institutional membership to include all cluster constituents

FIRMS

• Recognize the importance of location to competitive advantage

• Take an active role in improving competitive environment (consistently communicate needs to universities, training centers, etc)

• See cluster as a competitive advantage

• Contribute actively to cluster development activities (recruitment, new ventures to build-out cluster, etc)

Page 11

STRATEGIC INDUSTRY SECTOR INITIATIVES

• This is “owned” by the community. Integration of 5 industries and 7 Forms of Capital drives work

plans of multiple economic development, human services development, community development

and workforce development organizations. Mapping or tracking of ever-evolving and growing

initiatives would be great to do! The “how” hasn’t been answered. Examples include:

• Health Services: Immediate need for Certified Nursing Assistants in extended care facilities. Is

first step on a career ladder. Growing diversity of population and need to build regional capacity.

Partnered with non-Metro area to develop and deliver Career Academies exploring careers in

health services; certified nursing assistant training; training of instructors for CNA; English-as-a-

Second Language CNA model.

• Manufacturing: Development of Manufacturing Partnership of Central Minnesota (4 County) and

receipt of $75,000 sector grant to develop on-line video tours of manufacturing facilities for use in

education/training/employment programs; scholarships to post-secondary enrollees not likely to

complete training due to unmet financial neet; expansion of STAR Camp to Wright/Sherburne area;

report on value of manufacturing to region; marketing; purchase of 2 robots for use by youth to

reach other youth; development of pre-manufacturing certificate program with SCTC. (CMMA)

• 95% of SBETC’s training scholarships is in the strategic industries.

• SBETC’s summer youth Camp Challenge program does career exploration in strategic industries.

Page 12

CLUSTERS VS. SECTORS

• “Sectors”: Groups of firms with commonalities

• “Industry Clusters”: Groups of firms with linkages

• “Clusters”: Groups of industries OR people

Page 13

CLUSTERS VS. SECTORS

Typical Workforce ‘Sector’ Strategies

Typical Economic ‘Cluster’ Strategies

Stakeholders Widget makers, workforce developers

Widget makers AND suppliers, financiers, services, researchers, trainers, logistics, …all support

Goals Employment, poverty reduction Export growth, profitability, employment

Focus Labor supply and demand Competitiveness, business environment, performance, relationships

Analysis Occupational skills needs and shortages, occupations, target populations

Entire value chain, all inputs (human, financing, infrastructure R&D), innovation, market sophistication, relationships, geography

Leadership Workforce agencies, single type of employer

Economic Developer, Variety of employers or associations

Page 14

PURPOSE & VISION

• Purpose: To coordinate

strategies for enabling the

vision and to coordinate

the efforts for promoting

prosperity in Central

Minnesota.

• Vision: Prosperity in

Central Minnesota.

Growth is not the same

as prosperity. Growth

is only desirable

(“strategic”) if the

standard of living rises.

Workforce Development

Community Development

BusinessDevelopment

Human Services

Development

EconomicDevelopment

Page 15

CENTRAL MN STRATEGIC INDUSTRY CLUSTERS

• PRINTERS ASSOCIATION

• MIDWEST STONE FABRICATORS

ASSOCIATION

• SCIENCE INITIATIVE OF CENTRAL

MINNESOTA

• CENTRAL MINNESOTA MANUFACTURERS

ASSOCIATION

Page 16

ST. CLOUD AREA PRINTERS ASSOCIATION

 - 50 Years Old!

-  Primarily Social

- Now - Trust & Teamwork

- Cooperation NOT Competition

- Printing Sludge, Suppliers & Workforce Issues

Page 17

MIDWEST STONE FABRICATORS ASSOCIATION (MWSFA)

- St. Cloud - "The Granite City“

- Cold Spring Granite Company

- Park Industries, Inc.

- Eye Glass Lens Manufacturers

- Local Granite Fabricators

- Now - A Five State Regional Association

- www.mwsfa.com

- St. Cloud - "The Granite City“

- Cold Spring Granite Company

- Park Industries, Inc.

- Eye Glass Lens Manufacturers

- Local Granite Fabricators

- Now - A Five State Regional Association

- www.mwsfa.com

- St. Cloud - "The Granite City“

- Cold Spring Granite Company

- Park Industries, Inc.

- Eye Glass Lens Manufacturers

- Local Granite Fabricators

- Now - A Five State Regional Association

- www.mwsfa.com

Page 18

MIDWEST STONE FABRICATORS ASSOCIATION (MWSFA)

The Midwest Stone Fabricators Association is an association of certified professionals dedicated to

helping its members grow their businesses.

Page 19

SCIENCE INITIATIVE OF CENTRAL MINNESOTA (SICM)

- Mission - Attract Science Based Firms

- Inventory Local Assets

- Consultant - Industry Specific Knowledge

•  Match Local Assets with Industry Needs

• Regulatory Affairs Degree Program

•  Bioscience Link Newsletter

Page 20

SCIENCE INITIATIVE OF CENTRAL MINNESOTA (SICM)

• http://www.cmbioscience.com/

• http://www.cmbioscience.com/News/

Newsletters/tabid/84/Default.aspx

• http://www.msras.com

Page 21

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

• Manufacturers

• Workforce

• Staffing Agencies

• Economic

Development

• Education

Page 22

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

• Convene: Organize and network firms to aggregate need and achieve scale.

Examples: Workers Compensation, Cluster Development, Workforce Training

• Concentrate: Focus expertise, programs and services to add relevance and value.

Examples: Enterprise Minnesota, Workforce Centers, Education Systems

• Innovate: Support R&D, design, creativity infrastructure and capabilities.

Examples: Training Centers, Business Incubators, Shared Talent Centers

• Connect: Open pipelines to markets, ideas, partners, underserved people, places

Examples: Global Marketing, Bioscience, Business Development

Page 23

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

• Monthly breakfast meetings, seminar, tour

• Legislative Committee

• Social Committee

• Workforce Committee

• Program Committee

Page 24

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

• January: Inaugural Meeting

• February: Workers Compensation

• March: LEAN

• April: Health Insurance

• May: Synchronous Flow

• June: Legislative Forum

• September: R&D Tax Credits

• October: Supply Chain Management

• November: Competing In a Global Economy

• December: Workforce Development: What’s In My Toolbox?

Page 25

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

• Teacher Training

• Project Lead the Way

• STAR Camp

• Boys & Girls Club Tours of Industry

• Video Tours of Manufacturers

• Target Marketing

• Website/Newsletter

Page 26

AFFILIATIONS:

CENTRAL MINNESOTAMANUFACTURERS ASSOCIATION

Minnesota Precision Manufacturing Association

http://www.mpma.com/

http://www.amfa-mn-wi.org/

http://www.tsma.org/newindex.htm

Page 27

MORE OPPORTUNITIES

• Wood Product Manufacturing

• Plastic/Composite Manufacturing

• Call Centers/Data Centers/IT

• Business & Financial Services

Page 28

CONTACT

• Kathy Zavala

Stearns-Benton Employment & Training Council

(320) 308-5702

kzavala@sbetc.org www.sbetc.org

• Tom Moore & Henry Fischer

St. Cloud Area Economic Development Partnership

(320) 656-3815 or 3816

t.moore@scapartnership.com h.fischer@scapartnership.com

www.scapartnership.com