organizing for success in economic development

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

YESVIRGINIA.ORG

ORGANIZING FOR SUCCESS IN ECONOMIC DEVELOPMENT

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VEDP MISSION STATEMENT

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To enhance the quality of life and raise the standard of living for all Virginians, in collaboration with Virginia communities, through aggressive business recruitment, expansion assistance, and trade development, thereby building the tax base and creating higher income employment opportunities.

THE VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP (VEDP)

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• Virginia’s Business Welcome Center • Global Gateway for Virginia Companies • Ally for Virginia’s Communities • Revenue Generator for Virginia’s Citizens • Good Steward • Report to Board of Directors

– 24 members – 18 appointed by the Governor or the General Assembly – 6 ex-officio members – 6 year terms

• Report to the Secretary of Commerce and Trade

THE MARKET - REPORT CARD ON 2014


• Announcements results up compared with 2013 • Jobs: +35% (21,531) Strongest since 2011 • Capital Investment: +64% ($5.5 billion) Strongest capex on record

• Existing Business Expansions remain important to economic performance: 66% of jobs; 63% of capital investment

• Manufacturing represents 45% of job totals; 60% of total capital investment; very diversified activity

• Paper Manufacturing surpassed Data Centers as the dominant sector for investment; ($2.11B); Data Centers stayed strong at $2B

• Professional, Scientific, and Technical Services continues to be dominant sector for job growth (3,814 jobs)

• International investment up 303%* ($2.7 billion), 17% of all projects, 5,493 new jobs (+77% from 2013); slowly climbing back from the 2008 peak of almost 7,000 jobs

* +3% excluding the Tranlin deal

Presenter

Presentation Notes

2014 – By Jobs: Professional, Scientific, and Technical Services (3814) Administrative, Consulting, and Support Services (2548) Paper Products (2010) Transportation Equipment Manufacturing (1661) Management of Companies and Enterprises (1321) Printing and Related Support Services (905) Chemicals (642) Food Products (602) National Security and International Affairs (602) Publishing Industries By Investment: (without Tranlin, still the 5th strongest capex year) Paper Products($2.11 billion) Data Processing, Hosting, and Related Services ($1.62 billion) Had 44 Data Centers; 570 jobs; $2.002 capex Transportation Equipment Manufacturing ($406million) Management of Companies and Enterprises ($166 million) Food Products ($141million) Administrative, Consulting, and Support Services ($89million) Beverage Manufacturing ($76million) Merchant Wholesalers, Durable Goods ($66million) Warehousing and Storage ($64million)

WHAT IS THE MARKET DELIVERING?


• Market activity remains strong • Active Pipeline of projects is + 60% since Dec 2013 • Delivered Custom Proposals/RFI responses are

+74% from FYTD 2014 • Manufacturing represents 75% of these proposals

• Leading sectors: food & beverage, chemicals, industrial machinery, automotive/transportation)

• Corporate headquarters, operations centers • Professional Services

• Improving interest from retail distribution centers; seeing DCs integrated into manufacturing operations

• Average Deal Size : 67 jobs*; $13 million* • Ten Years Ago: 101 jobs; $8 million *For averages Tranlin deal was excluded.

THE NEW VIRGINIA ECONOMY

• A Commonwealth at the Crossroads

6 VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

• VEDP Current & Proposed Deliverables

• Recalibrating VEDP

• Five Declarations of Intent & Hurdles to Clear

STRATEGIC REVIEW 2015


• The New Virginia Economy – “…Enhancing our infrastructure…”

VEDP Proposed Deliverable 1. Establish and fund public/private partnership site program, with emphasis on mega-sites



• The New Virginia Economy – “…Growing our strategic industry sectors…”

VEDP Current Proposed Deliverables 1. Produce target sectors for marketing 2. Build-out geographic capacities 3. Conduct more in-depth sector research in targeted markets 4. Rely on empirically-driven marketing to reach key prospects 5. Outreach to key corporate and high-growth businesses 6. Expand communication and coordination with allies 7. Put in place cross-department industry sector “swat” teams



• The New Virginia Economy – “…Promoting our competitive business climate…”

VEDP Current and Proposed Deliverables 1. Develop new brand for The New Virginia Economy 2. Market attributes of Virginia regions 3. Increase exports to global markets 4. Build stronger collaborative partnerships 5. Create synergies and support work of VEDP’s regional allies 6. Benchmark Virginia’s regional industry strengths against global competitors 7. Protect Virginia’s competitive taxation system, fair regulatory environment and business-friendly laws and leadership



• The New Virginia Economy – “…Nurturing a sustainable entrepreneurial environment…”

VEDP Proposed Deliverables 1. Develop the first statewide sustained high-growth firm strategy in the nation



• The New Virginia Economy – “…Equipping Virginia’s workforce with in-demand skill sets…”

VEDP Current and Proposed Deliverables 1. Fully integrate workforce (VJIP) into operations 2. Enhance VJIP as a portal for businesses to access workforce delivery capabilities 3. Leverage and champion higher education partners in creating credentials that count for business

LOCAL, REGIONAL, STATE…..PARTNERSHIPS!

STATE

REGION

LOCALITY

AT THE LOCAL LEVEL • Provide leadership to the community in attaining its goals. • Have we established goals for our community?

Where are they found? Is there community consensus around those?

• Do we have…

– An Economic Development Strategy or Plan? – A process for measuring progress against the plan? – Designated ownership in the community for various

plan elements & implementation? – A real estate strategy? Prepared, controlled sites? – Resources ($$ and people) to carry it out?

Presenter

Presentation Notes

KEY POINT:�Today, economic development is far more than a singular focus, on “selling” your community to an outside firm. There are major risks to such a narrow strategy. It is far more about maintaining a staedy process to critically understand the community’s economic base; knowing what drives the economy; and understanding how the locality “fits” into a regional economy; then developing a series of strategies designed to: Shore up your weaknesses Recognize and leverage your competitive strengths; what makes you different and better? Create improvements to the community with an eye towards areas that will drive community growth, boost the talent level of the area, and create balance economic performance. Requires leaders to work collaboratively with citizens, businesses, and other communities towards a common vision. The vision should be captured in the ED Strategic Plan; have a regular/annual review of progress made on the plan and recommend tweaks as needed. Community Marketing, Branding, and “Selling” may be part of your plan – but hopefully it is being done as part of a sanctioned, intentional community effort and “fits” into an overall plan. More than just building an industrial park and hoping it will attract a tenant.

AT THE LOCAL LEVEL • The toughest part. Looking at your community through the

lens of an outsider, potential investor. Why would a business choose to come to my locality?

• Objective analysis of conditions in the community • What forces are impacting the community? • Truly understand the economic base of the community.

What is the structure of my community’s economy? What stands out as a strength? What looks like a vulnerability?

• Forms the foundation for pulling together a strategic plan. • Lead with your strengths. Plan for shortcomings. • Look for collaborations, partnerships, ways to leverage

partners strengths.

Presenter

Presentation Notes

The Local Role – Ultimately where economic development activity occurs. A function of community preparedness in the areas of zoning, land use, infrastructure and utilities, community planning, place making, quality of life, education, lifestyle, and amenities. May involve development or partnering on industrial /business sites & buildings with private sector.

AT THE REGIONAL LEVEL • Regions are the primary level of analysis for businesses • Businesses evaluate and utilize a regional perspective for labor,

transportation, education, supply chain, market, and virtually every aspect of their operations

• In Virginia, the governing system of independent cities and

counties creates an artificial barrier for the public sector to answer business needs from a similar regional perspective.

• Regional alignment – and in some cases, regional ownership and/or cost-sharing – is attractive to business. (example, regional industrial parks.)

• Localities that connect with each other effectively can reduce

costs, as well as produce more innovative, competitive and sustainable solutions in many areas including utilities, workforce, transportation, education, and visibility in the market.

Presenter

Presentation Notes

Regional Role – A key convener and facilitator of jurisdictions around common purpose. Fashioning a regional vision & strategy; benchmarking performance against appropriate peers. Elevating the profile of the region for external market audiences. Rallying regional support for economic prosperity and growth. Key coordinating link between state/local ED functions. d before, businesses do not see or much understand regional boundaries as they evaluate business locations.

AT THE REGIONAL LEVEL

• Realities of regionalism – not easy, can be messy • Defining the issue and defining the successful outcome is necessary. • Identifying the common aspect of regional interest, and building

the stakeholder relationships is the critical foundation. • Role & responsibilities of partners must be clear • Geographies can be barriers to communication that is necessary to

develop the stakeholder relationships. • Regionalism that produces results takes leadership, trust, time and

treasure. • The issue to be solved, will define the region to be included. • Leadership can be stretched thin. • Progress is incremental.

AT THE STATE LEVEL


• Coordinating entity with high visibility in global market • Capturing Virginia’s distinctive regions into a multi-

faceted unified outreach marketing strategy • Serving as trusted advisor to existing businesses • Leveraging the prestige and power of the Governor’s

Office • Linking and leveraging state partners to solve business

needs • Identifying business issues and recommending policy

modifications to create a stronger business climate • Serving as a resource to share best practices with

localities and regions • Managing state incentive programs

Presenter

Presentation Notes

This could likely be expanded one slide or page for each level…

WHAT DOES SUCCESS LOOK LIKE?

Presenter

Presentation Notes

So…if we continue to have continued success, it might look something like this with new and additional names sprinkled all over Virginia. These are just a sampling of some we have worked with in the last couple of years. Advanced Manufacturing: Areva/NN; Goodyear; Continental; Rolls Royce Services: Hilton, CSC, Raytheon; CGI in SWVA Science & Research: AREVA (Lynchburg) Transportation: Harris Teeter; Orbital (Aerospace) Internationally-headquartered: MWV, AREVA Existing Industry: Nautilus, Goodyear, AREVA, Continental, CSC, Raytheon. MWV

LOCAL, REGIONAL, STATE: PARTNERS

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organizing for success in economic development

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