collar counties

Collar Counties

Business & Industry Cluster Analysis and Recommendations for the Oshkosh Area

June 27, 2013

Oshkosh

Project GoalsEconomic Development Strategy and Detailed Action Plan to:

• further develop business and industry clusters in Oshkosh, Winnebago County and the

Northeast Wisconsin region

• increase private investment (and associated tax base)

• increase regional business interrelationships (and associated supplier network

contracting and growth)

• enhance job retention success (and associated capital investment)

• increase job creation (and associated payroll growth)

• increase local consumer spending

Project Summary

• Data Collection/Modeling

• Interviews and Surveys

• Analysis

• Strategy Development and Action Plans

• Preparation and Presentation of Final Report

Primary Planning AreaOshkosh Drive Times

(10, 20, 30 and 45 minute travel zones)

Collar Counties

8 County Regional Analysis Area

Economic Importance by SectorCurrent Sector Projected

1 Manufacturing 1

2 Education 3

3 Health Care 2

4 Tourism 5

5 Information Technology 4

6 Professional, Scientific & Technical 7

7 Retail 6

8 Management Administration 8

Interview and Online Survey Results

Economic Development FocusLocal economic development efforts and resources should be focused to:

Composite Score

Retain existing businesses in the area 387

Expand existing businesses in the area 331

Increase creation of new business start-ups in the area 271

Attract existing businesses from outside of the County to locate in the area 222

Interview and Online Survey Results

Rank the most important when measuring economic growth over the next 5-10 years:

Rank Economic Priorities Composite Score

1 Total jobs 254

2 High wage jobs 207

3 Tax base 188

4 Investment 179

5 Number of new businesses

153

6 Number of total companies

145

7 Total exports 56

Winnebago County Industry Profiles(ranked by age concentrations)

Manufacturing Total Emp. 24,214 % of Total Emp. 27.3 % of Payroll 35.8

Public Administration 3,688 4.2 3.8

Education and Health 17,845 20.2 18.7

Financial 3,488 3.9 4.0

Professional and Business Services

Total Emp. 9,825 % of Total Emp. 11.1 % of Payroll 15.3

Trade, Transportation and Utilities 13,912 15.7 11.6

Information Total Emp. 1,524 % of Total Emp. 1.7 % of Payroll 2.1

Construction 3,395 3.8 4.4

Leisure and Hospitality 6,610 7.5 2.0

U.S Department of Commerce, Census Bureau

Total Employment Change 2010-2040 (in thousands)

60.15.9 83.5

1.2

1.9

30.4 10.1

13.8

Source: Woods and Poole 2012 State Profile; Wisconsin Counties

Income Rank (2010 per capita)

2315 9

6613 17

3022


Income Rank (2040 per capita)

1739

5616

70

323422


Strategies SummaryCluster Company Destination Talent Site Based

Information Technology IT Industry group IT Entrepreneurship IT Accelerator program IT Company funding Attract Data Center State resources/ networks Security Research

“Second Stage” Growth Companies Manufacturing Information Technology Professional/Tech Growth Management Academy Recognition and Award Private equity

Tourism/Events UWO sports facilities EAA Sports spectators Sport participants Concerts Festivals Water-based activities Unique retail and hospitality establishments

Recruit Skilled Talent Design and engineering Skilled operators Middle management Production workers Information Technology

Residential Develop new rentals Mid-high end Higher density units

Manufacturing Foreign Direct Investment WMEP – Operations WMEP/WEDC – Exports Sustainability Supply Chain Professional , Technical

Middle Market Firms Global expertise Management experience Core competencies Private equity

Business VisitorsBusiness meetings ConventionsProfessional events

Retain High Skill Talent Enhance placement Community involvement Mentoring Serial entrepreneurs

Targeted Census TractsAreas 5, 7, and 12Mixed use RetailHospitalityResidential Redevelopment Owner occupied renovation

Aviation Small craft/ experimental EAA Innovation Products and services

Entrepreneurial Start ups Early Stage Access to resources Mentoring Networking

RetireesHousing Discretionary Spending Medical /HealthcareCharitable and civic Part-time workers Retirement assets

Develop Workforce K-12/Business Partners Post Secondary Entrepreneurship Management

Commercial/Industrial Business Park marketing Focus on business expansion/relocation Premier Lakefront resort

Project Deliverable Layers This project report document and Strategy

Recommendations include four layers including Concept Visuals (in the form of bubble diagrams), formatted description and explanation of Recommendations, Data and Research Summaries and Detailed Data and Spreadsheets.

Interview and survey results and

comments are included in the Data and Research Summaries.

Detailed source data and spreadsheets are not included within the project report document.

1 •Concept Visuals

2 •Recommendations

3 •Data and Research Summaries

4 •Detailed Data and Spreadsheets



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Targeted Census Tracts Areas 5, 7, and 12 Mixed use Retail Hospitality Residential Redevelopment Owner occupied renovation


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4490 Fund - IT Focus

Data Center New North

• IT Accelerator

•Gener8tor/UWO

• ORIGIN

Wisconsin Security Research Consortium

IT Users Group

UWO

IT Cluster Base

ImproMed; Dealer Fire; Yahoo Call Center; Oracular; CMS; Accu-com; Plexus; Bedrock; US Bank; Miles Kimball; Derksen & Sons; Spectrum; East Bay; and others

Angels on the Water – Start up funds

IT ClusterIT Base

IT Opportunity

IT Firms in Oshkosh

Source: Wisconsin Dept of Workforce Development

Regional Information EmploymentNumber and Percentage by County (2010/2035)

2010 – 570 7%2035 - 490 5%

2010 – 2,330 28%2035 – 2,910 31%

2010 – 2,320 28%2035 – 2,270 24%

2010 - 50 1%2035 - 50 1%

2010 – 1,760 21%2035 – 2,490 26%

2010 – 180 2%2035 – 230 2%

2010 - 80 1%2035 - 80 1%

2010 - 1,000 12%2035 - 990 10%


Key IT Trends

From:

Functionality

Bottom-line Efficiencies

Transactions

Connection points

Facts and Figures

Selling

To:

Analytics

Top Line Growth

Relationships

Data Assets

Visualization of Context

Co-creation of Solutions

IT Recommendations• Tactic 1A: Position Oshkosh/Winnebago County as a growing hot spot for

IT businesses and startups and a competitive location for IT related businesses in the region

• Tactic 1B: Facilitate networking of existing IT businesses and professionals to promote peer relationships and additional growth in their businesses

• Tactic 1C: Foster networking of IT technical professionals and IT related companies – resurrect the IT users group formed in 2008 as part of the New North capacity building initiative

• Tactic 1D: Establish and facilitate industry peer groups in emerging industry areas including software, gaming and mobile applications

IT Recommendations • Tactic 1E: Create an IT accelerator to incubate new and

growing start-ups in emerging industry areas including software, gaming and mobile applications

• Tactic 1F: Create value proposition and focused effort to attract the location of a major data center to the Oshkosh/Winnebago area

• Tactic 1G: Establish ongoing working relationships with angel and venture capital organizations to attract and secure financing sources for new and growing IT businesses

Manufacturing Cluster – Oshkosh/Winnebago County

Foreign Direct Investment

Supply ChainIntegration

NEW ERA Cooperative Engineering Programs

Professional, Scientific and Technical Services to Manufacturing Sector

•Expanded Exports •WMEP•WEDC• UWO

Oshkosh Corporation; KC; Bemis; Plexus; Jay; Triangle; Nercon; Menasha Corp.; Shallbetter; Hoffmaster; Banta; Milprint; JJ Keller; Baldor; Axeltech; Perfecseal; and others

• Paper Products• Converted Paper• Printing• Plastics/ Rubber• Machinery• Transportation• Metal Fabrication •Supply Chain

•Workforce •Training•Manufacturing Culture

Sustainability

Viessmann Group

Mfg Base

Mfg Opportunity

Metropolitan Areas by Degree of Manufacturing Specialization, 2010

Note: Metropolitan areas colored gray are not specialized in manufacturing, green are strongly specialized, blue are very strongly specialized, and red are highly specialized. Source: Brookings Institution

Manufacturing Concentrations

Geographic Area % of Jobs in 2000 % of Jobs in 2010 % of Jobs in 2020

United States 10.73 7.05 5.97

Great Lakes Region 15.37 10.24 8.79

Wisconsin 17.75 13.43 11.90

Appleton, Oshkosh, Neenah CSA

23.81 19.48 18.60

Oshkosh/Winnebago County

28.69 24.43 24.12

Woods and Poole, 2012

Regional Manufacturing Employment as a % of total County employment- 2010

17.8 13.816.0

12.1

10.6 14.824.4

16.6

Source: Woods and Poole 2012 State Profile – Wisconsin Counties

U.S. Manufacturing Employment (Gains & Losses by Industry – 2000–2010)

Gains• Automotive 6,000• Paper & Printing 13,000• Metals & Minerals 21,000• Machinery 50,000• Transportation Eq. 95,000

Losses• Computers & Electronics - 407,000• Textiles & Apparel - 284,000• Chemicals, Plastics - 84,000• Food & Beverage - 18,000• Wood & Furniture - 9,000

Source: Bureau of Economics Analysis; McKinsey Global Institute

Global Trends Affecting Manufacturing • High volatility and uncertainty

• Changing global patterns of demand

• Consumption in developing countries to grow from $12 trillion in 2010 to $30 trillion in 2025;

• By 2025, developing countries could account for 70% of global demand for manufactured goods

• Rising input costs (rising wages in low cost areas)

Source: McKinsey Global Institute

Global Trends Affecting Manufacturing • Talent shortages (engineering, design, automated production,

customer support)• Productivity gains through robotics and automation• New technologies (demand for value-added services in a timely

and effective manner)• Innovation (growing number of SKU’s to meet customer

preferences and applications)• Advanced materials development • Need for communication and efficient management of resources• Government policies that encourage or discourage investment

Source: McKinsey Global Institute

Manufacturing Recommendations• Tactic 1A: Strengthen Regional Support for and Implementation

of Advanced Manufacturing Growth

• Tactic 1B: Expand export activities of local manufacturers

• Tactic 1C: Establish working relationships with existing and potential Foreign Direct Investment partners in the region

• Tactic 1D: Establish Regional Supply Chain Council to address current relationships and potential opportunities to further integrate the regional supply chain

Manufacturing Recommendations

• Tactic 1E: Establish Regional Association of Professional, Scientific and Technical Service providers to address current and evolving opportunities to serve the regional and national market

• Tactic 1F: NEW ERA – Cooperative Engineering Programs

• Tactic 1G: Pursue Development of Regional Sustainability Council

Second Stage Companies - Oshkosh/Winnebago County

•Growth of customer base•Market expansion•Exports focus and resources

Wisconsin Companies to Watch Awards

•Production, fulfillment, distribution and business organization

•Growth Management Academy Skilled and Experienced Management

•UWO Management Programs•SBDC•Business Success Center Success

•Second Stage Businesses --•Companies with 10 – 100 employees:•Manufacturing (150+)•Professional, Scientific & Technical (50)•Information (15)

•Educational resources •Mentoring capabilities•Investment capacity

•Workforce •Training programs•Growth of markets

Second Stage Co. Base

Second Stage Co. Opportunity

“Second Stage” Growth Companies Second Stage Cluster Strategies recognize an existing concentration of growing businesses between 10

and 100 employees

Recommended strategies emphasize focus on further developing this cluster through actions that will: Assist in the expansion of existing growth firms across industry types

Expand the supply of a trained and skilled workforce that meets needs of group

Deliver local, regional and statewide resources that serve to accelerate the learning curve and rate of growth for companies

Identify opportunities to match operational and management needs with regional expertise to accelerate growth

Recognize the efforts and accomplishments of Second Stage growth companies at the State and local level

Winnebago County Manufacturing Firms By Stage of Growth

Year Total Number of Companies

Total Number of Stage 1 Companies(1-9 employees)


Total Number of Mid. Market Firms(100 – 1000+ empl)

2007 316 103 157 56

2008 314 104 153 57

2009 310 107 159 44

2010 305 107 157 41

Source: U.S. Census Bureau – County Business Patterns 2012

Winnebago County Information Firms By Stage of Growth


Total Number of Stage 1 Companies

(1-9 employees)


Total Number of Mid. Market Firms(100 – 1000+ emp.)

2007 53 35 15 3

2008 48 34 13 1

2009 46 30 13 3

2010 47 28 15 4


Winnebago County Professional and Technical Firms By Stage of Growth




Total Number of Mid. Market Firms(100 – 1000+ emp.)

2007 265 206 57 2

2008 258 203 54 1

2009 248 191 56 1

2010 250 198 50 2


“Second Stage” Recommendations• Tactic 1A: Identify “Second Stage” growth companies in the areas of

manufacturing, information, and professional, scientific and technical services

• Tactic 1B: Explore potential of Regional Stage 2 Program. Combine

education and training, facilities and equipment for new product development, and a community-based mentoring program with local and regional partners. Partners can assist and accelerate commercialization and growth for these high potential companies in the region

• Tactic 1C: Develop “Suite of Services” for Second Stage Companies

“Second Stage” Recommendations

• Tactic 1D: Develop Growth Management Academy for Second Stage Companies

• Tactic 1E: Collaborate with Sponsors of “Wisconsin Companies to Watch” awards program

• Tactic 1F: Research and Develop Relationships with Private Equity Investor Groups

Aviation Cluster – Oshkosh/Winnebago County •North American Production• FDI • Defense Dept.• Regional Supply Chain New

Aviation Products- Materials - Software

Further Develop EAA and Oshkosh Brand

New Aviation Services

Facilitate Aviation Focused Investors

Aviation Cluster Base

EAA , Air Show; AirVenture Museum; Basler, Sonex, Spanbauer, Aero Innovate, Wittman Field and FBOs

•Aviation Asset Base:

•Global brand recognition of EAA

•Spanbauer/Training Programs

•Skilled Labor and Management Base

Aviation Base

Aviation Opportunity

Aviation Cluster Aviation Cluster Strategies recognize existing concentrations of Aviation business activity

and events that create brand recognition for Oshkosh Recommended strategies emphasize focus on further developing this cluster through

actions that will:

Strengthen Oshkosh and EAA as a thought leader in general aviation

Attract prospective companies and aviation based entrepreneurship to the area

Expand and retain trained and skilled workforce in the area

Assist in the expansion of existing manufacturing, service and membership businesses

Identify additional market opportunities for the development of new aviation

products and services

Reinforce the image and recognition of Oshkosh as a general aviation destination and

gathering point within the State of Wisconsin and the U.S.

Aviation Recommendations• Tactic 1A: Continue and expand the current initiatives to establish Oshkosh as a Center

of Influence in the Aviation industry

• Tactic 1B: Facilitate meetings and ongoing dialogue among aviation focused investors in the identification, discussion and due diligence of new products and services

• Tactic 1C: Explore potential aviation related production opportunities that leverage the intersection and concentration of the local aviation and manufacturing clusters

• Tactic 1D: Research international aviation products companies that may have an interest in expanding production in North America

• Tactic 1E: Establish partnerships with UW Madison – Advanced Materials Industrial Consortium to identify relevant research and regional manufacturing opportunities incorporating composites and other advanced materials

Recruit Skilled Talent Strategy

Middle and Senior Management

Entrepreneurs

Top Level University Graduates in Design, IT, Engineering

Skilled operators and production workers

•Regional companies that attract national and international talent

•Presence of broad range of regional employment opportunities

Talent Recruitment Base

Talent Recruitment Opportunity

Trailing Partner

Dynamic

Retain High Skill Talent Strategy Recommendations

Increase mentoring activity

Retain and develop Serial Entrepreneurs

Enhance Placement with regional companies

Increase Community involvement

Propel

•Existing base of highly skilled talent •Expanding metropolitan area •Expanding regional employment base •Range of regional community, employment, housing and educational options

Talent Base

Talent Opportunity

Workforce Development Strategy

FVTC Advanced Manufacturing

UWO MBA Exec MBA/ PMBA

•K-12 exposure to manufacturing technologies

•FABLAB

•Partners in Education

•Partners at Learning

•Business and entrepreneurship

•Project Lead the Way

Business Competitions Design Competitions

Primary school systemSecondary school systemPublic/Private PartnershipsFVTCUWO NEW ERA

Workforce Development Base

Workforce Development Opportunity

Talent Development Continuum K-12 • FVTC Fabrication Facility and Programs

• Product Development Competitions

Post Secondary• Business Clubs and Competitions• UWO Student Incubation

Entrepre -neurship

• Center for Innovation, Technology and Entrepreneurship (CITE)

• Regional Mentoring Network (UWO, business leaders, successful entrepreneurs)

Small Business Support • UWO – SBDC – Business Success Center• Placements

Growth Companies

• Stage 2 Accelerator Program• Product Development• International Opportunities – Exports, Foreign Direct

Investment

Middle Market

• Product Development• Process Improvement • Workforce Training, Certification and Apprenticeship

Advanced Manu- facturing• Promotion of Smart Manufacturing Opportunities• Workforce Training, Certification and Apprenticeship• Manufacturing Cluster Support

Conceptual Representation and Examples of System Parts

Talent and Workforce Recommendations

• Tactic 1A: Identify Key Talent Requirements in the Region

• Tactic 1B: Assist in the recruitment of an expanding pool of individuals with entrepreneurial and ownership interests, skills and experiences

• Tactic 1C: Inventory current concentrations of vital talent assets in the region

• Tactic 1D: Develop Public/Private Initiatives to Engage Skilled Talent in Regional Activities

• Tactic 1E: Map regional education/training and development continuum to help identify current resources, potential gaps and opportunities to improve transitions along the continuum

• Tactic 1F: Develop K-12/Business Partnerships that Include Promoting Hands-on Design, Innovation Development Activities, and Exposure to Careers in Technology

Talent and Workforce Recommendations

• Tactic 1G: Establish Regional Business Concept Competitions

• Tactic 1H: Explore Potential of UWO Student Business Incubator

• Tactic 1I: Explore potential of Entrepreneurial Companies Strategies – Tactics 1C and 1D as Parts of Development System

• Tactic 1J: Explore potential of Second Stage Companies Strategies – Tactics 1B, 1C and 1D; Manufacturing Cluster Strategies – Tactics 1A and 1B; and Middle Market Companies – Tactic 1B as key additions to Regional Workforce and Talent Development System

Moving Ahead Together

Think and Track Globally: Plan and Act Locally

Collaborate and Align Efforts Regionally: Implement

at Local Level

Act Collectively: Celebrate Progress and Wins

Community-Wide



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Targeted Census Tracts Areas 5, 7, and 12 Mixed use Retail Hospitality Residential Redevelopment Owner occupied renovation


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collar counties

Documents

state total

total employment change

minutes4collar counties

business servicestotal

economic growth

northeast wisconsin

industry clusters

winnebago accounts