Presentation

Economic Growth: Survey of Growth Communities

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

Connecting Companies With CommunitiesTM

Moran, Stahl & Boyer

Economic Growth: Economic Growth: Survey of Growth CommunitiesSurvey of Growth Communities


Moran, Stahl & Boyer Profile (Sample of Client Base)

Corporate Site Selection• American International Group (AIG)

• American Fuji Seal

• AT&T

• Colgate-Polmolive

• Columbia Energy Group

• Corning Incorporated

• Dow Chemical

• Federal Express

• Infineon Technologies

• John Hancock Insurance

• Johnson & Johnson

• Mac Dermid Corporation

• Merrill Lynch

•Prudential Financial Services

Economic Development Consulting• Alberta

• Arizona

• British Columbia

• Connecticut

• Delaware

• Florida

• Georgia

• Massachusetts

• Newfoundland/Labrador

• New Jersey

• New York

• Pennsylvania

•Texas

• Virginia



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



Fifteen Communities Surveyed

Community Selection Based on:• Level of growth

• Size of population

• Diversity of economic base

• Geography

• Personal experience



Key Drivers of Growth



Target Industries for Future Growth

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

Clean/Renew able Energy

Aviation/Aerospace

Electronics/Optics

Healthcare Services

Logistics/Distribution

Information Technology

Region/Corporate Headquarters

Specialty/Advanced Mfg.

Life Science/Biotech

Back Office/Shared ServicesBack Office/Shared Services

Life Science/Biotech

Specialty/Advanced Mfg.

Region/Corporate HQ’s

Information Technology

Logistics/Distribution

Healthcare Services

Electronics/Optics

Aviation/Aerospace

Renewable Energy

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



Biotech and Life Sciences

Chemicals Pharmaceuticals Biomaterials Pesticides

BioinformaticsMedical DevicesMedical InstrumentsElectronic Equipment



Techniques for Reaching Out to Existing Employers

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

Survey of Needs/Business Climate

Topical Seminars/Workshops

Periodic Social Events

Newsletter

One-on-One MeetingsOne-on-One Meetings

Newsletters

Periodic Social Events

Seminars/Workshops

Annual Business Surveys

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?

• How can the community support them?

• Where are they in their life cycle?

Employer interviews and plant tours are important ways to better understand your economic base.



Phase IIIMaturation &Consolidation

Phase IIRapid Market Growth Through Internal

Expansion and Acquisition

Phase IBusiness Start-up & Product Rollout

Outp

ut

Time

Company/Product Life Cycle: Key to Understanding Opportunities

Start-up Capital > Labor/Facilities/Capital > Minimize Cost > Sustained Market

Phase IVSustained Niche or“Last One Standing”

A

B

C

D

Critical Decisions Made in Phase IIIA: Attempt to go back to Phase II (new market expansion/product improvements)B: Consolidate with competition to grow share in a shrinking marketC: Go/stay private with niche operation and proceed to Phase IVD: Continue to enhance productivity to sustain margins (production improvements/cost takeouts)



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

• Punctuality . . . dependable

• Business etiquette . . . respect/discern

• Drive to succeed . . . focused/ethical

• Commitment . . . hard work/time management

• Attention to detail . . . pursuit of quality

• No drugs . . . testing is inevitable

• Work in teams but also independent thinker

• Demonstrate creativity and innovation

• Grasp critical thinking approach to problem solving

• Quick to learn new information and concepts

• Attitude that readily adapts to change

• Math…integral to many industries

• Computer…Microsoft Office platform

• Communication … written and verbal

• College degree . . . technical and entrepreneurial

• Industry specific. . . jargon and concepts

• Special certifications . . . by discipline

Core “Soft” CompetenciesCore “Soft” Competencies

Core “Technical” CompetenciesCore “Technical” Competencies

Advanced “Soft” Competencies

Advanced “Technical” Competencies

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



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



Workforce Development Strategy

Elementary > Secondary > College > WorkforceStudents, Parents, Educators, Prospective Employees, etc.

On-Going Interface With Local IndustryLabor Force Planning, Career Awareness/Trends, Internships, etc.

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

Facilitators• Econ. Dev. Staff• WIB’s• Local Industry

Leaders• Local Education

Leaders

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



Techniques for Stimulating Entrepreneurial Activity

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

Low Cost Space andIncubators for Start-Ups

Courses on PreparingBusiness Plan

Business Plan Competitionto Win Start-Up Funds

Access to Low InterestLoans and Grants

Entrepreneurship Aw arenessEntrepreneurship Awareness

Access to Low Interest Loans/Grants

Business Plan Competition to Win Start-Up Funds

Courses on Preparing Business Plans

Low Cost Space and Incubators for Start-Ups

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



Entrepreneurial Index

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

Allentow n-Bethlehem, PA

Knoxville, TN

Sarasota-Bradenton, FL

Albuquerque, NM

San Antonio, TX

Richmond, VA

Indianapolis, IN

Nashville, TN

Jacksonville, FL

Medford, OR

Austin, TX

Raleigh, NC

Charlotte, NC

Bend, OR

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.

Allentown-Bethlehem, PA



Effective Economic Development Marketing Tools

Web site

Direct letters to consultants and prospects

Road trips to visit consultants, brokers and prospects

Industry-specific trade shows

Use of PDF attachments on web site

Familiarization trips for consultants, brokers, etc.

Real estate-related trade conferences/trade shows

E-mail updates and newsletters

Hard copy mailed updates, newsletters, magazines

Advertising in site selection publications

Advertising in industry-specific publications

Web Site-Related Tools

Direct Communications

Face-to-Face Activities

Print Advertising

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

Advertsing in industry-specif ic publications

Advertising in site selection publications

Hard copy mailed updates, new sletters and magazines

E-mail updates and new sletters

Real estate-related trade show s

Familiarization trips for consultants, brokers and prospects

Use of PDF attachments on w eb site for easy dow nloading

Industry-specif ic trade show s

Road trips to visit consultants, brokers amd prospects

Direct letters to consultants and prospects

Web site



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.

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.




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)

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.




Two Most Important Things to Stimulate Economic Growth

• 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).

Strategy



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.



Two Most Important Things to Stimulate Economic Growth

• 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.

Relationships



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.



Reflections on Economic Growth

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

- Benjamin Franklin



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.

John M. Rhodes, Senior Principal

941.755.0041

[email protected]

Moran, Stahl & BoyerSite selection and community economic development consultants.

MS B&

Date post:	15-May-2015
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