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Prepared by Michael Bergeron
Retention & RecruitmentNH Division of Economic Development
January 31, 2013
Prepared for the
Town Durham:Economic Development
Committee
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Overview
• Current national economy• Key points in retaining business• Key points in recruitment business• Economic development ideas for Durham
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DRED Overview
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Michael’s background:
• Has been with DRED since 1997• Manages out of state business recruitment• Before joining DRED, worked with CB
Richard Ellis in Boston as a leasing broker• Lives in Litchfield New Hampshire• Has three children—two boys and a girl.
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The labor participation rate (58.6%) is well below the 66% to 67% rate that was
normal over the last 20 years
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1 Trillion in $100.00 bills
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Annual spending on entitlement programs is massive
ANNUAL SPENDING (2012 )
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“U.S. Economy Unexpectedly Contracts in Fourth Quarter”
• Updated January 30, 2013, 10:10 a.m. ET
“WASHINGTON —U.S. economic momentum screeched to a halt in the final months of 2012, as businesses pared back inventories and government spending fell sharply ”
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Conclusion:
Its no longer business as usual
for towns andcities
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Business Retention
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Focus on Keeping Your Current Business Durham
• Don’t waste your time and limited resources looking for out-of-state companies hoping to land the BIG ONE.
• Instead, first work on keeping the BIG ONES already in Durham.
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Retention/Expansion is Much More Important
Current Trends in 2012:
* More consolidations* Cost containment* Fierce competition
“Double or nothing” retention and expansion projects
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How to retain and grow companies in your community:
RelationshipsRelationships are primary,
all else is secondary.
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Stay in touch with yourCURRENT BUSINESSES
80% of business growthwill come from your town or city.
Continue to visit your companies and ask them how
you can help them— Justin Slattery will helpyou with the larger companies
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Create long-term relationshipswith your businesses
• Town Newsletter, e-mail
• Recognition awards to businesses.
• Ground breaking and other public relations
• Develop a relationship with your local chamber of commerce
• Set up regular visits or calls
• Invite the business to get involvedwith the community-get them connected!
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Current ERZ Zones in Durham?
• 1) Durham Downtown Economic Revitalization Zone (approved 5/10)
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Part IIBusiness Recruitment
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Key Target Industries--Industrial and office uses:
• Advanced mfg. companies
• Biotechnology/Medical Device Industries
• Financial Services & Insurance Companies
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Marketing Tactics• Old fashion cold calls• Web-site as a sales tool – key to success• Targeted Tradeshows (2 per year)• Targeted sales group presentations • Targeted initiatives• Referrals from NH companies• Network with real estate brokers, venture
capitalists, site consultants and attorneys• Network with local and regional economic
development officials
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Recruitment sales cycle—two years
1 Businesses!
5 Prospects
20 Leads
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Recruitment lead sources
11%
1%
8%
9%
5%
4% 2%2%2%
30%
1%
25%
Attorney
Recruitment Dinner/Presentation
Tradeshow
Web
MEP
DRED
CIBOR
Banker
Local Economic Development
Cold Call
Governor's Office
Pease
WEB
DRED
CIBOR
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Offering a great “quality of life” is not a competitive advantage anymore.
People want to know these answers to these
Questions in this order:
• 1. What are the incentives and taxes $$$?
• 2. Your skilled labor?
• 3. Highway access?
• 4. Available industrial/office buildings to lease/sale?
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New York50 Connecticut40
New Jersey49Maine30
Vermont47Massachusetts22
Rhode Island46New Hampshire7
StateRankStateRank
US Business Tax Climate 2013
1 = best 50= worst
Source: Tax Foundation, Washington DC
(South Dakota is lowest)
New Hampshire’s business taxes compared to neighboring states
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How can a town show they are business friendly?
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Start with a single point of contact in town and have clarity of approval process
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The point person should:
• Professional dress and meeting place
• Consultative selling—good questions
• Correspondence—Professional• Don’t apologize for weaknesses
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Do too many town employees think they are the boss?—
“Too many cooks spoil the broth”
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Selectman and economic development
committee must work together
• Select one person to represent the town• Town selectman should agree with the
selection
• Town selectman should have consensus on the role of the committee and it’s authority.
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Remember:
“Attitude and Patience is more important than
water and sewer.”--Commissioner George Bald, DRED
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Confidentiality must be honored“Loose lips sink ships”
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SPEED = SUCCESS:Speed is of the essence.
Decision time frames are half of what was allowed
3 years ago.Selection process stresses
ELIMINATION !!
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Ways to be Eliminated Today:
• Can’t find the right building for the right price
• Uncertain about the economy• Weak or poor water/sewer system• Permit and approval process
TOO SLOW• City or town with a bad attitude
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What = NOT business friendly?
• Too much in-fighting between boards
• Protracted regulatory review: planning board, ZBA and conservation committee
• Poor customer service
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The elected officials and town employees must have a Service
Excellence Attitude:
* Return phone calls & e-mails promptly
* Quick follow -up* Don’t use voice mail to avoid the
public* Remember the tax payers are your
customers* Smile
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Town Hall
• Is the town hall well kept?• How is the parking?
• Is the parking lot well lighted at night?• Is it easy to find if your not from town?• Is it easy to find the main entrance?
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What does the town hall look like?
• Is it welcoming?• Is it designed with the
customer in mind?
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How can local (and state) Boards deterbusiness?
Delay, Delay, Delay
--too focused on small technical issues like the number of landscaping trees and bushes
-- requiring a company to pay for infrastructure that the town or city should have planned an paid for in advance.
--zoning rules that restrict business growth in a slow economy
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Small business say they are frustrated by too many local
regulations
Rules are always made with good intentions usually justified for public safety/welfareand revenue needs. But how much is too much?
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Federal Rules
State Rules
City/Town Rules
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Durham Business Park
* Ever expanding wetland rules reduce usable land*Vague rules that are open to “confusion and delay”
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Building design for park:
• Buildings shall be designed to complement rather than dominate their surroundings.
• There must be a coherent and consistent theme reflected in the design and construction for all of the individual buildings located on the site.
• Mechanical equipment and other utility hardware (i. e. meters, satellite dishes, etc.) shall be screened f rom public view with materials harmonious to the building or located to preclude visibility from any public ways.
• Traditional building materials such as wood, stone, and brick shall predominate.
• Windows shall be located on building sides facing primary roads or public areas in addition to any windows that may be located on the water side.
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How many screws in your dry wall?
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If you can’t change the rules,
make it easy for your businesses
to work with the rules
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What helps a business:
• “Look at the zoning rules on the website”
VS• “These are the critical steps you need
to take and this is how long it will take—let me know how I can help you”
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Marketing Durham to the outside world
Your key strengths includes:
1. University of New HampshireYoung talented labor at lower costR & D possibilities
2. Close proximity to Portsmouth
3.Excellent school system nice small town feel
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Your Key Weakness
1. Perceived as anti-development
2. Lack of industrial inventory
3. High real estate taxes
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Commercial real estate search on broker websites—what shows up for
Durham?
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8 New Market Road, 4059SF $769,000
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10 Newmarket Road, Durham
• Summary • Property Details• View Details• Primary Property Type: OfficeProperty
Sub-type: Office BuildingBuilding Size:7,233 SF
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Recommendation:
• Inventory your industrial buildings and land
• Address, contact name and e-mail address
• Show on a map
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Recommendation
• Change the perception that Durham is anti development—work on your brand image
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Marketing:More Intense Competition Necessitates Differentiation
• Economic Development Marketing consists of all activities designed to create desirability and differentiationof a state or town to the audience.
Be Different!
Get Atten
tion!
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Work with media to help get the word out
• Write positive press releases• Talk about growing companies
in Durham• Pitch stories to the media
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“New Hampshire ’s secret salesman luring Bay State firms across the line ”
By Jenn Abelson Globe Staff / July 8, 2011
“CONCORD, N.H. - New Hampshire pays Michael Bergeron to be a full-time thief , sending him across the border in an unmarked black sedan to poach Massachusetts companies.”
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Insurance Dinner, Hampton, NH
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Dinner/Presentation in New Jersey
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Northern Coos County Bus Tourfor Southern NH Brokers September, 2003 & 2007
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Western Grafton County Tour Bus 2012
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Broker Tour: Western GraftonCounty 2012
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B-52s Private dinner/concertHampton Beach 2011
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Private Client Dinner before the concert
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Hampton Beach Casino, 2011
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GET BIG AND RICH INNEW HAMPSHIRE
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Biotech Show, Boston 2012
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Sherbrooke Dinner, 2012
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Follow up FAM tour in CoosSeptember 2012
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Kheops Inc., in Colebrook invited 10 people from Quebec to meet with
Beno and Michael Sept. 2012
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Aerospace show in Montreal 2012
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Private dinner in Montreal withManufacturing company
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Next Suggestion to Durham:Your website is door to the outside
world
• 80% of brokers, site consultants, and company decision makers research a city or town by a website before contacting someone at the city or state.
• Its also important to your tax payers
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Top FiveMost Useful Features of an Economic Development Organization's Website
0% 10% 20% 30% 40% 50% 60% 70%
Demographic information
Database of available buildings/sites
Comparisons to competitor locations
Workforce
Incentives Information
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Examples of award winningwebsites (International Economic
Development Council)
Population—under 25,000 people• Ohio• Florida• Texas• California• Virginia
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Website colors
• Simplicity
• Forget black and white or shades of gray.
• Think of green, yellow, red, andblue as your primary color.
• Limit your to two or three colors.
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Then add images of peopleRed--Life Magazine Website:
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Green
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Blue
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Web images
Your web images should not look like a Steven King novel where aliens have kidnapped all the people and all that is left are buildings.
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Blue Ash, Ohio—front page
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Quality of Life Images
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Recommendation: Good map
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Government website awards 2011Government Technology Magazine
• First place: West Hollywood, CA
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Click on Planning Board:
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OK, what about the contact page:I want to call the town hall
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Recommendation:Create written checklist of
Durham’s approval process……
Names, titles, phone numbersand time frames
for the normal approval process,assuming the application is
complete
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Recommendations
Website:MapBusiness—why DurhamInventory—available industrial land/buildingsList the names and contact info for the town council,
planning board members, etcGood contact pageRemember: The tax payers are your customers—
make it easy for them to contact you
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Towns People have to Work Together
• Everyone can take a part--- from business owners to stay-at-home mothers
• You already have so much going for you—don’t take it for granted!
• Be Patient and don't give up. Ex: Colebrook, New Hampshire
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Finally, Remember:
“Attitude and Patience is more important than
water and sewer.”Commissioner George Bald, DRED
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Summary
• Planning Board and Selectman--smile when you meet with businesses
• Ask how you can help them with town rules and the process.
• Improve the town website • Let us know who DRED can help you
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Contact:Michael Bergeron
DRED603-271-2591