Engaging Communities for Economic DevelopmentStaying competitive in community

development while the world is changing around us!

And the winner is…..

And the winner is…..

What will the election of _______ mean for economic developers?

1) Continued significant reduction in federal budgets

2) Focus on private sector oriented approaches vs. direct government subsidy

3) Shorter term Congressional approvals for critical programs

4) Potential reorganization of key government agencies involved in economic and community development

Engaging Communities for Economic Development

Major (and long term) Economic and Demographic Shifts Impacting Community and Economic Development

Ten Focused Strategies to keep your Community Competitive in Economic Development

Economy Workforce Technology

Major (and long term) Economic and Demographic Shifts Impacting Community and Economic Development

Economy

Structural Change

Government Fiscal Issues

Workforce

Older Workforce

Younger Workforce

Workers Traveling Further

Technology

Changing Business Models

Wired Economic Development

We are not replacing jobs lost through the recession

The recovery from this recession is taking longer than prior recessions

Property Taxes based upon Valuation

Sales Taxes based upon Sales Revenue

Income Taxes based upon Wages

Property Taxes based upon Property Values

Fees and Transfer Payments from other sources

GLOBALIZATION

LAYOFFS

FORECLOSURES

CLOSINGS

Distress on city / county budgets as the recession ripples through the economy

State & Local budgets are lagging the recovery

Public sector employment has declined through the recession after years of growth

Major programs at the federal and state levels have experienced major cuts.

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We are not replacing our retiring workers with our new workers

Over the next twenty years there will be 76 million Baby Boomers old enough to retire…

….but only 48 million new workers will be available in the talent pipeline to fill their positions.

What percent of people have ever had a tattoo or body piercing?

Over 40: 10%

Under 40: 40%

Employers have significantly increased their use of part time workers.

Education continues to define unemployment rates.

Dayton Montgomery County

2002 2010 2002 2010

Travel less than 10 miles 66.20% 60.50% 60.50% 54.20%

Travel 10 to 24 miles 19.50% 22.30% 22.60% 23.90%

Travel 24 to 50 Miles 7.90% 8.70% 8.80% 9.70%

Travel Over 50 Miles 6.30% 8.60% 8.10% 12.20%

Out of necessity, workers are more mobile --- they will travel further for a job

5. The Internet = Speed, democratization of information

6. Technology: Impact on Manufacturing, Service, Distribution

52 percent of all small businesses are home based and 78.5 percent employ only the sole proprietor.

Of the 21.5 percent that do employ anyone, only 10.7 percent of that group will employ more than 20 people.

There are 331,000 self-employed workers in Ohio, making up 6.00% of the total workforce, up by 5.00% from 2001. The Average Wage of a self-employed worker in Ohio is $25,331.

The 1099 Economy is becoming a more important part of your community

In 2010, there were about 28 million small businesses in this country, responsible for 49.2 percent of private sector employment.

But there were also 18,500 firms with 500 employees or more, defined as big business, and they employed the other 50 percent or so.

Entrepreneurship: More small businesses…working for big business

“Politicians and senior regulators consistently and publically profess the value and importance of community banks to our economy, yet their recent actions suggest otherwise…The flood of new regulation, demands for more capital, harsh enforcement plus an unexplained three-year-old de facto moratorium on de novo bank charters lead one to believe that Washington really wants fewer community banks.”

The American Banker, October, 2012

Bank restructuring will continue to limit financing options

There is a significant consolidation of banking institutions

The number of community banks has declined significantly

And the Data Shows….

• Total Projects: 93 (47 Expansion, 46 New)• Average Jobs: 181• High Jobs Number: 900 • Average Square Feet: 157,000• Average New Jobs: 256• Average New Square Feet: 203,000• Big Deals: 1 Project; 1,500 jobs, Mfg. 1M SF

Source: Site Selection Magazine, May 2012

Death of the Big Deal in Economic Development

And the Data Shows….Even in Attraction….workforce & infrastructure rank higher than incentivesWhat Matters Most: Site Selectors Most Important Criteria

1. State and Local Tax Structure2. Transportation & Utility Infrastructure3. Land/Building Prices & Supply4. Ease of Permitting and Regulatory Process5. Workforce Skills6. Local economic development strategy7. Legal Climate8. Availability of Incentives9. State Economic Development Strategy

Ten Strategies to Stay Competitive

• The need to develop a strategy is NOT changing

• The need to develop strong partnerships is NOT changing

• The need to provide quality services is NOT changing

• The need to tailor your ED tools to the needs of your community is NOT changing

What’s NOT Changing?

1. Think “Strategic Doing” vs. “Strategic Planning”

• Network of Networks• Plan; Then Do, Then Plan Again• Go from planning to implementation• Know your goals and focus your efforts• Engage the Community and the Networks• Ed Morrison, Purdue University• What’s happening at EDA with their CEDS

2. Understand the ROI of your Economic Development Program

• Cost / Benefit analysis for community investment of time and resources

• Economic Development E > P• Fiscal Impact Analysis• EDA Triple Bottom Line: Equity, Environment,

Economy• Political justification• Understand…and take…informed risk

3. Collaboration is the New Competition

• Companies are looking for your ability to bring a wide variety of resources to the table

• Regional collaboration: What is your community’s role in the region?

• Expand your partnership to include workforce, land use, transportation, philanthropic, hospitals, permitting

4. Make your collaborations effective

• Look for the key development Levers that help move projects forward: – Transportation, Land Use, Regulation

• Understand who does what best• Share back office resources to focus on the

delivery of services

5. Place Matters: Enhance what makes your community livable

• Identify and leverage your strongest assets• Richard Florida: The Creative Class ?• What makes your community special?• Asset mapping on a local AND regional basis• Tactical urbanism

6. Double Down on Retention and Expansion

• Sometimes the best R & E does not involve incentives but simply helps solve problems• Understand your business community and

what helps it grow• Organized R & E program to track activity and

performance• Don’t promise what you can’t deliver• R & E is still the Best Attraction Strategy• Cluster Strategy, Supply Chain, Key Partners

7. Expand workforce collaborations to include K-12 and Community Colleges

• Realign workforce programs to focus on two key priorities:• Job Readiness training as a public priority• Specific skill training in direct partnership

with employers• Engage employers more directly: Train for

their job openings and for their future needs

8. Emphasize the Entrepreneurial Strategy that fits your community

• Small Business • Economic Gardening• 1099 Economy• Incubation and Acceleration

9. Fine tune your financing and incentive toolkit

• Use state incentives strategically• Create local incentives that make sense for

your community• Provide for transparency and accountability• The fewer the programs, the easier the deal• Stronger reliance on local financing and

federal programs

10. Fine Tune your web presence and social networking

• 90% of the research by a site selection company is done BEFORE you are contacted

• Keep your inventory of sites up to date• Have a user friendly website• Link your site with your regional economic

development partner• Easily accessible public services

Key Questions

• Where are you, where do you want to be, how do you get there

• How well do you know your community?• Have you established priorities, goals, tasks, with

assigned leads?• Do you have a toolbox that is appropriate to your

community and priorities?• Do you have a way of measuring performance

and reacting?

Key Questions and Next Steps

Thank you.