dm comm leadership meeting

7/29/2019 DM Comm Leadership Meeting

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Competitive Capacity Assessment

January 19, 2011


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Presented By

Alex Pearlstein, Director of Projects

Ellen Anderson, Director of Research

Community Leadership Meeting


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Economic context

Market Street Services

Capital Crossroads process Competitive Capacity Assessment

Next Steps

Agenda


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Economic Context


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The Great Recession: Dec 07 Jan 10

Total jobs lostduring this time:

8.35 million

Source: Bureau of Labor Statistics, seasonally adjusted

By January 2010,14.8 million wereunemployed and 9.3

million were workingpart time, wantingfull-time work.

70,000

-10,000

-50,000

-33,000

-149,000

-231,000

-193,000

-210,000

-334,000

-458,0

00

-554,000

-728,000

-673,000

-779,000

-726,000

-753,000

-582,000

-347,000

-504,000

-344,000

-211,000

-225,000

-224,000

64,000

-109,000

14,000

-900,000

-800,000

-700,000

-600,000

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000Dec-07

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10


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The 2000s

This was the first business cycle where a working-agehousehold ended up worse at the end of it than thebeginning, and this in spite of substantial growth in

productivity, which should have been able to improveeveryone's well-being.

Lawrence Mishel

Economic Policy Institute

Washington Post

January 2, 2010


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1. The decade of 2000 2009 was JOBLESS. While we gained 27 million newresidents, we lost 985,000 jobs.

2. Three in 10 unemployed Americans were out of work for 27 weeks or more at theend of the recession. That number has since climbed to 4 in 10, the highest since

the measure's creation in 1948.

3. The civilian labor force shrunk by 1.5 million people - a record since World War II.

4. Total loans at FDIC banks dropped 7.4 percent in 2009 - the largest drop in 67

years.

5. The Standard & Poors Index (including dividends) from 2000 through 2009 was -9%: a greater loss than the 1930s.

The Great Recession Has Left Us

Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve


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6. Number of homes where the mortgage exceeded the value: 1 in 4.

7. 70 banks failed during the recession, an additional 234 banks have failed since then.

8. Companies with fewer than 50 employees accounted for 41 percent of the total job loss

in the great recession. That number is five times its share compared to the 2001recession.

9. Household debt has declined 3.8 percent from its peak in July 2008 through October2009. This is the largest decline since 1943.

The Great Recession Has Left Us

Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve


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Household Net Worth 19812010

Source: United States Census Bureau, Moodys Economy.com

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

$700,000

Average Net Worth of Households and Non Profits, United States(Adjusted for Inflation, 2010 dollars)

= National Recession

-23.5%Q1'07 - Q4'09


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Families in Need

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Percentage of Households Receiving Food StampsSource: Food and Drug Administration; Moody's Economy.com

Key Dates:

1990 - Mickey Leland Domestic Hunger Relief Act greatly expands benefits.1997 -Welfare reform; introduction of TANF leads to restrictions on access and benefits .

2002 - Food Security and Rural Investment Act reapproves restores eligibility limited in 1997.

2005 - Spike in food stamp receipients due to Hurricanes Katrina and Rita.

1 out of every

6 households

(June 2010)


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The consumer confidence index from a survey of 5,000 U.S. households. Seasonally adjusted: 1985=100

Source: The Conference Board

Consumer Confidence

Drops Slightly

52.5

0

20

40

60

80

100

120

Jan Mar May Jul Sept Nov Jan Mar May Jul Sept Nov Jan Mar May July Sept Nov Jan Mar May July Sept Nov

2007 2008 2009 2010

Dec 2007: 90.6Dec 2008: 38.6

Dec 2009: 53.6Dec 2010: 52.5


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State Unemployment Rates

November 2010

United States 9.8%

Iowa 6.6%

Source: U.S. Bureau of Labor Statistics, seasonally adjusted

California 12.4%Michigan 12.4%

Rhode Island 11.6%South Carolina 10.6%

Oregon 10.6%

Nevada 14.3%

Florida 12.0%

Ohio 9.8%Mississippi 9.9%

Indiana 9.8%

Georgia 10.1%Kentucky 10.2%

Washington DC 9.8%


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Elvis Has Left the Mountain

First, if it is not apparent to you yet, it will be soon:

there is no magic bullet for this economic crisis, nomagic bailout package, no magic stimulusWe are

going to have to learn to live with a lot moreuncertainty for a lot longer than our generation has

ever experienced.

Thomas L. Friedman, AuthorNew York Times

February 1, 2009


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Market Street Services


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Background on Market Street

Three key principles distinguish our work from other firms:

Rather than prescribing quick fixes, our goal is systemicchange.

Rather than producing boilerplate studies where only theclients name changes, our goal isproducing deliverablesspecific to each clients situation.

Rather than faceless consultants that make two presentations

and disappear, our goal is developing a relationship aspartners.


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Market StreetClients

Austin, TX

Nashville and Memphis, TN

Birmingham, AL St. Louis, Springfield, and Jefferson City, MO

Tulsa, OK

Little Rock, AR

Sioux Falls, SD

Coachella Valley, CA

Greenville, SC

Metro Atlanta: Carroll, Clayton, Cobb, Henry,Forsyth, & Gwinnett Counties

Since 1997, Market Streethas worked in more than 125 communitiesand 29 states, including:

At the state level in: Alabama

Florida Georgia

Indiana

Missouri

North Carolina

West Virginia

Wyoming


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Market StreetCurrent Clients

In addition to Greater Des Moines, Market Streetis currently working inthe following communities:

Wheeling, West Virginia

Hancock County, Mississippi Springfield, Illinois

State of Missouri

Montgomery, Alabama

Northwest Arkansas

Cobb County, Georgia

DeKalb County, Georgia

Alpharetta, Georgia


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Visioning Process


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Steering

Committee

Stakeholder Input

Economic and

Demographic Snapshot

Competitive Capacity

Assessment

Target Cluster and

Marketing

Analysis

Implementation Action

Plan

Capital Crossroads Plan

Scope of Work

People, Prosperity & Place

Greater Des Moines (MSA)

Central Iowa

Des Moines MSA

Ames MSA

Newton MiSA

Pella MiSA

Marshalltown MiSA

Boone Misa

Comparison metros

Denver, Omaha, Madison

State and Nation

Stakeholder Input

50 one-on-one interviews

30 focus groups

Constituency-specific

Assistance from ISU Extension

Online survey

General survey:

CapitalCrossroadsVision.com

Young professionals survey

Project Advisors

Dr. Jesse L. White

Amy Holloway

Next Generation Consulting


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Competitive Capacity Assessment

Analyzes Greater Des Moines and Central Iowas competitivenessas a place for business and talent

People, Prosperity, Place

Research indicators reflect those from a typical site selection process

What issues, challenges, constraints and opportunities affect yourcommunity product?

Public input informs and supports the quantitative research


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Target Cluster and Marketing Analysis

Reviews business location/expansion decision factors Begins with an overview of the decision making process of relocating and

expanding businesses

Confirms existing and analyzes emerging targets

Recommends key targets for Greater Des Moines to pursue Based on the Capital Crossroads regions corporate and research strengths,

workforce capacity, wealth-creation potential and national industry trends

Marketing advisor Amy Holloway will review: Regional websites

External and internal marketing programs

Advertising, branding, identity, message

Findings will inform the Capital Crossroads strategy


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Capital Crossroads strategy

Focus is on taking community to the next level of competitiveness

Culmination of all prior research components

Recommendation of goals, objectives, and action steps to prioritizefuture Greater Des Moines and Central Iowa investments for thecoming five-year period

References best practices and provides benchmarks andperformance measures


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Implementation Plan

Critical to the success of the Capital Crossroads strategy

Key components:

Identification of lead and support implementation entities

Program assessments and recommended enhancements

Funding allocation analysis and recommendations

Action timelines for implementation developed for each program year

Discussion of new and/or enhanced partnerships necessary for effective

implementation


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Key questions

How can the Capital Crossroads regions growth be most sustainable?

What will that growth look like, and where/how will it be focused?

How big is too big? Is there such a thing as too big?

How can the Capital Crossroads area grow, but retain the qualities that

people cherish about the region? What employment sectors will drive the regional economy and how can

they best be supported?

Does the regional training pipeline effectively prepare students and adults

for locally available, high-value jobs? What could be the transformative projects/efforts that really move the

region forward in the coming years?

How can quality of life continue to play a key role in the regions growth?

Can it be enhanced even more?


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PEOPLE:Talent development & socioeconomics


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People: Talent Development

Pre-K Access: Participation skyrocketing, but potentially

threatened by de-funding

Stakeholders are pleased with services but would like increased access

Iowa ranks 14th nationally, but significantly trails top states

Governor Branstad set to propose a shift to needs-based funding

Public K-12 Schools: Urban/suburban regional disparities

Des Moines PS enrollments have declined (-0.92%) while those in the MSA

have increased notably (10.1%) over the 5-year period Performance challenged by changing demographics

Stakeholders would like to see more charter schools and career academies butare discouraged by state policy and regional parochialism


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Higher education: Extremely competitive capacity, which

continues to grow can be better leveraged for talent retention

Very high college students per capita, with the highest percentage increase inenrollment among the comparison MSAs

ISU one of the nations top agriculturally-focused research institutions All of the regions colleges and universities are well regarded by residents, with

Drake University achieving the highest ratings among survey respondents

Question of how students can be better connected to job opportunities

Workforce development resources: Multiple resources butreported lack of awareness of certain programs

RWIB trying to recover from scandal involving predecessor agency

Central IA Works created to fill void coordinate cluster councils

DMACC a key asset but some programs are space-constrained


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Rank Metropolitan Area Index

Population

ApproachingRetirement

Young

ProfessionalsPopulation

LFPR

(Ages 62+)

LFPR

(Ages 25-34)

Long-Term Net

Migration

Short-Term Net

Migration

37 Des Moines-West Des Moines, IA 60.37 89 106 23 16 93 72

116 Ames, IA 53.24 102 82 52 99 284 291

39 Denver-Aurora, CO 59.50 59 77 13 139 105 142

38 Madison, WI 59.99 81 81 15 20 117 160

62 Omaha-Council Bluffs, NE-IA 56.73 96 114 21 55 173 165

Age Pipeline Labor Force Participation Migration TrendsWorkforce Index - Demographic Substainabilit y Index

Market Street Services Workforce Risk Index,

Rankings out of 353 Metropolitan Areas, 2008


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People: Socio-economics

Poverty

2009 total poverty rate 15.0% 17.1% 11.0% 15.0% 15.7% 20.0%

Rank 2 4 1 2 3 5

Per Capita Income

2008 Per Capita Income $42,506 $48,010 $44,172 $43,012 $37,509 $40,166

Rank 4 1 2 3 6 5

Per Capita Income Growth

%, 2005-08 10.87% 11.01% 12.05% 12.17% 16.02% 13.39%

Rank 6 5 4 3 1 2

Educational Attainment

% of adults w/ an Bachelor's degree or higher, 2009 33.8% 37.6% 41.0% 31.8% 25.1% 27.9%

Rank 3 2 1 4 6 5

Des Moines,

IA

Denver,

CO

Madison,

WI

Omaha,

NE Iowa

United

States

PEOPLE: Snapshot data


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People: Young Professionals

Overall

RankMSA Vitality Earning Learning

Social

Capital

Cost of

Lifestyle

After

Hours

Around

Town

Avg.

Score

1 Madison 10 8 9 7 2 10 7 7.57

2 Des Moines 6 4 5 7 8 5 5 5.71

3 Denver 5 5 5 8 3 5 6 5.29

4 Austin 3 7 6 5 5 5 5 5.14

5 Minneapolis 5 7 5 5 2 3 7 4.86

6 Omaha 5 5 4 2 6 3 6 4.43

7 Nashville 4 3 1 3 6 5 2 3.43

8 Indianapolis 2 1 4 2 6 5 1 3.00

10 = BEST SCORE

Source: Next Generation Consulting


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PROSPERITY:Economic performance and structure, business

climate, and entrepreneurship and innovation


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Prosperity: Performance and Structure

Des Moines,

IA

Denver,

CO

Madison,

WI

Omaha,

NE Iowa

United

States

Employment

5-year change, Q1 2005-Q1 2010 4.16% 0.23% -1.05% 0.96% -0.39% -2.58%

Rank 1 3 5 2 4 6

WagesAverage annual wage, 2009 $44,073 $51,733 $42,861 $40,555 $37,158 $45,559

Rank 3 1 4 5 6 2

Wage Growth

%, 2005-2009 10.85% 12.61% 12.17% 11.63% 12.36% 12.00%

Rank 6 1 3 5 2 4

Worker Productivity

Output per Worker, 2008 $106,493 $121,951 $98,418 $100,197 $91,040 $105,081

Rank 2 1 5 4 6 3

Business Bankruptcies

Rate per 1,000 Establishments, Q1 2010 5.4 10.6 5.8 5.3 3.8 6.8

Rank 3 6 4 2 1 5

PROSPERITY: Snapshot data


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Prosperity: Performance and StructureCentral Iowa Private Employment By Business Sector, Q1 2010, 5-Yr Trends

Total

Average

Annual

Wage

Establish-

ments LQ

Change

(%) Change (#)

Total Private 332,335 $43,220 22,769 1.00 1% 2,922

5-Year Job Growth

Health care and social assistance 44,991 $39,748 1,974 0.88 17% 6,586

Finance and insurance 49,127 $78,788 1,767 2.79 9% 4,262

Administrative and waste services 20,992 $30,122 1,358 0.95 19% 3,401

Professional and technical services 15,985 $56,160 2,766 0.67 11% 1,573

Educational services 6,472 $32,130 271 0.81 21% 1,105

Management of companies and enterprises 5,528 $74,818 242 0.93 14% 700

Arts, entertainment, and recreation 5,738 $20,009 377 1.06 13% 638

Agriculture, forestry, fishing and hunting 2,044 $114,219 221 0.65 33% 508

5-Year Job Loss

Wholesale trade 19,973 $66,711 2,206 1.16 -1% (105)

Real estate and rental and leasing 4,649 $38,777 954 0.77 -6% (321)

Transportation and warehousing 10,549 $53,096 659 0.85 -7% (742)

Accommodation and food services 28,322 $12,911 1,703 0.83 -3% (756)

Information 9,907 $49,006 414 1.14 -10% (1,110)

Retail trade 45,712 $22,652 2,855 1.01 -4% (2,145)

Construction 14,237 $47,007 2,070 0.86 -26% (5,043)Manufacturing 34,244 $45,726 799 0.94 -15% (5,844)

Business Sector

Private Employment, Q1 20105-Year Trend

(Q1 05 - Q1 10)

Source:U.S.

Bureau

ofLaborStatisticsandU

.S.

CensusBureau


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Prosperity:Business Climate & Small Business Development

Taxes: Perception of Iowas tax environment as anticompetitive Ranked 5th worst in U.S. by Tax Foundations 2011 State Bus. Tax Climate Index.

$1 million commercial building will be assessed $46,781 in property taxes in DesMoines vs. $21,343 in Omaha, $20,570 in Madison, and $5,185 in Denver.

Net tax expenditures minus credits and federal withholding are less restrictive

Competitive retail and office lease rates, but a glut of inventory

Downtown worries stakeholders

Small business development and tech transfer/commercialization must

be optimized High per capita small business loan amounts but no prominent go-to resource for

people looking to start or grow a small business.

Need for an enterprise development support system

Despite improvement, ISUs IP and Conflict of Interest policies limit research and

commercialization efforts


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PLACE:Quality of life, infrastructure, arts and culture, and

community capacity


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Des Moines,

IA

Denver,

CO

Madison,

WI

Omaha,

NE Iowa

United

States

Cost of Living

C2ER Index (US = 100), 3Q2010 90.0 103.9 109.8 89.5 - 100.0

Rank 2 4 5 1 n/a 3

Home Prices

Median sale price of single family homes, 2Q2010 $154,298 $229,258 $213,599 $137,027 - $173,178

Rank 2 5 4 1 3

Rental Housing CostMedian Rent $619 $778 $731 $611 $496 $702

Rank 3 6 5 2 1 4

Health Care Capacity

Physicians per 100K residents, 2010 227.5 238.9 334.7 242.3 175.3 220.5

Rank 4 3 1 2 6 5

Well-Being Index

Overall Well-Being Ranking of 185 metros 30 52 33 73 - -Rank 1 3 2 4 n/a n/a

Crime Rates

Combined Property and Violent Crime Ranking of

332 metros 200 168 277 119 - -

Rank 2 3 1 4 n/a n/a

Philanthropy

Nonprofit Organization revenue per capita, 2010 $11,685 $4,627 $11,109 $8,307 $5,408 $5,587

Rank 1 6 2 3 5 4

PLACE: Snapshot data

Place: Summary

Cost of living keyselling point

Favorable housingappreciation trends

Rental market iscomparatively

affordable, butmany residents stillpay >30% of theirincome on rent

Lower number ofdoctors per capita

Lowest average

cost per doctor visitcompared toOmaha, Madison,and Denver

Health andwellness poised tobecome a majorinitiative in theregion

Metro crime ratesare very low

However, the City ofDes Moines

combined propertyand violent crimerates ranked higherthan all thecomparison cities

Strong philanthropicand civic capacities


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Place:Infrastructure

Highways and roads N/S and E/W interstates and loop highway competitive for logistics and an

attractor for manufacturing projects

I-35 corridor could be key link b/w Ames-Story Co. and Greater Des Moines

What do you think about the relationship between Des Moines and Ames? 81.3 % -

friendly but do not cooperate very often, 5.4% - relationship is strained

Air and rail Air cargo capacity allows for growth, but passenger issues related to limited direct

flights and high airfares a source of strong stakeholder concern

Strong number of Class I rail lines hope dimming for passenger rail

Public transit Many input respondents want to see more capacity but lack of population density

is a challenge


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Place:Livability and Civic Capacity

Arts, Culture and Recreation Strong capacity in Greater Des Moines, not just for a community of its size, but

for a much larger region

Bravo regional arts agency has been effective in coordinating resources and workingto increase capacity

Billions invested in Downtown Des Moines helping with talent attraction/retention

Miles of bike/walking trails developed next stage is to close gaps and connect

Philanthropy and Leadership

Legacy of strong public and private leadership led to development of numerouscommunity assets and projects

Reportedly, a growing philanthropic gap as older generation steps away and next

generation of transformative leadership yet to be identified


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General Online Survey: Highlights

Place of EmploymentPlace of Residence

Please respond to the following statement:


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Exce llent Good Average BelowAverage PoorDontKnow

49.8% 34.2% 9.7% 3.6% 1.8% 0.9%

50.4% 30.9% 9.4% 3.5% 3.1% 2.7%

11.0% 28.4% 26.2% 12.2% 8.8% 13.4%

20.6% 27.5% 20.8% 10.6% 12.3% 8.3%

Likelihoodyouwillcontinuetoliveinthecommunity

Likelihoodyouwillraisechildreninthe

community

Likelihoodyourchildren(oncegrown)

willchoosetoliveinthecommunity

Likelihoodyouwillretireinthe

community

Answer Options

Overall stakeholder attitudes on quality of place


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Business Climate

Community ClimateStrongly

Agree AgreeNeither

Agree norDisagree

Disagree StronglyDisagree

17.9% 54.9% 19.4% 6.4% 1.4%

10.7% 46.6% 24.5% 14.6% 3.6%

13.5% 51.7% 22.7% 10.9% 1.2%

43.5% 48.8% 5.8% 1.5% 0.4%

5.8% 32.0% 31.8% 20.8% 9.5%

15.1% 54.8% 18.8% 9.3% 2.0%

Healthy,activelifestylesareencouragedand

supported

Answer OptionsNewmembersofthecommunityare

welcomed

Thecommunityvaluespersonsofdiverse

races,ethnicities,faiths,andsexual

Youngprofessionalsareactivelyengagedin

leadership

Thereareopportunitiestovolunteeryourtime

forworthycauses

Thepublic'sopinionsarevaluedby

government


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Most critical workforceweakness

Greatest workforcestrength


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Rank Response Count

1 Des Moines/Iowa 'image' 1922 Unemployment/Lack of jobs 164

3 Young professionals leaving/attract younger people 155

4 Educational performance 109

5 Public transportation 105

6 Need to revitalize downtown 67

7 Attracting quality businessess 78

8 High property and sales taxes 57

9 Tolerance of diversity 52

10 Weather 45

Most importantchallenge

Rank Response Count

1 Quality of life 136

2 Quality of education 123

3 Family friendly 1204 Cost of living 115

5 Downtown revitalization 104

6 Workforce/work ethic 81

7 Outdoor recreation/Bike trails 75

8 The people 70

9 Low crime rate 67

10 Art scene 45

Top Opportunity


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VISION

A cool, culturally welcoming and diverse place with interesting cities andscenic rural attractions that offers all people access to world classeducation, career employment opportunities in 21st Century industries

while enjoying a very interesting and stimulating quality of life outside ofthe workplace.

I want to be able to brag about my city and how great it is to other youngpeople. I want to be able to say that, living in Des Moines, so many of

the cultural opportunities I am interested in come right to my doorstep. Ialso want to be able to say that, no matter what your career goal, DesMoines has something to offer.


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FINAL THOUGHTS

Central Iowa has the right people in the right places to accomplishanything it sets its mind on.

For the 33+ years that I have lived in Des Moines I have beencontinually impressed with the forward thinking and planning that goeson and the resulting progress made. It is and should continue to be anongoing cycle among Greater DSM and now Central Iowa thatcontinually expands the discussion of what is possible along with what is

attainable and doable next.

Some leaders do not realize they ARE leaders. There should bemindfulness toward cultivating those who would normally not speak up,but may have the greatest impact if incorporated into this process.


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Conclusion: Strengths and Opportunities

Increasingly diverse population

Competitive school systems

Dynamic higher education resources

Strong work ethic and competitive workforce

A growing base of networked young professionals

Well established, effective economic development programs

Finance and insurance concentration with key diversification opportunities

I-35 corridor potential

Growing number of fast-growing technology start-ups

A dynamic, affordable quality of life ongoing downtown development

A philanthropic, active civic capacity and respected leadership base


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Conclusion: Challenges

External perception of Greater Des Moines and Central Iowa

Divergent economic/demographic/education trends in City of DM vs.region

Potential over-concentration of finance and insurance employment

Reportedly risk-averse attitudes preventing development of a cultureof entrepreneurship in Greater Des Moines

Lack ofconnectivity and go-to support entity for small business

No formalized networking and support system for aspiring entrepreneurs

Evolving but still restrictive tech transfer and commercialization at ISU


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Conclusion: Challenges

Perceived tax inequities

Above average airfares and a lack of direct flights at DSM

Lack of critical mass of entertainment amenities and districts

YPs often dont serve as ambassadors for Central Iowa

Widening philanthropic gap as current leaders step aside

Persistent parochialism that hamstrings regional efforts


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Next Steps

Community Leadership Meeting #2

Presentation of the finalCapital Crossroads Plan

Tuesday, April 26, 2011

5:00-6:00 pm

Documents will be posted on the project website:

http://www.capitalcrossroadsvision.com


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Questions, comments?