staying competitive in economic development

PowerPoint Presentation

Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Changing Times: Staying Competitive in Economic Development

Mark BarbashExecutive Vice PresidentFinance Fundwww.linkedin.com/in/markbarbash

Part 1: Whats happening in the economy thats impacting economic developmentPart 2: What this means for economic development of our communitiesStaying Competitive in Economic Development


Lets remember how far we have come since the end of the recession:

1 minute, 38 seconds


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Is our economy coming back? On the one hand.On the other hand


On the One Hand: Jobs are Coming Back .. 66th Straight Month of Growth


Trend: Ohios economy is expected to continue recoveryBank Lending Appears to be Coming Back


and Capital Investment is starting to come back.


On the Other Hand: almost 40% of potential workers are NOT looking for work


and many people have only been able to find part time work

Part Time Employment

Full Time Employment


and demographic trends are changing makeup of the workforce

Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015The pipeline of younger workers is significantly less than the number of retirement age workers.

The number of banks has declined due to mergers & acquisitions


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and most larger banks have exited the business of small business lending

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and expensive financing from alternative lenders is growing rapidly

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while we are appear to becoming less entrepreneurial over time

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The Inland Northwest Region is also experiencing an overall recovery

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And jobs in the region are recovering and projected to continueJob Growth and Trends: 2001 2025 / Percent Change

19But there some are disparities among the INW Regions

Trend: Business Lending could show a turnaroundInland Northwest Partners Staying Competitive in Economic Development September 17, 201520So what does this all mean for community leaders?Economic recovery with the economy is going through a major transitionGlobalization is continuing to challenge American communitiesProductivity improvements because of technology changesDemographics are shifting workforce, interest in urban areas & job skills

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21How should community leaders respond?

Ten Strategies to Help Stay Competitive


Strategy 1: Analyze and understand what drives your local and regional economy

Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015Who are the major employersWhich industries are growingHow does your economy support the communityHow does your community support the economy

Trend: Economies are defined by their RegionsStrategy 2: Think, plan and act regionally

Economic growth is not based on boundary lines.


69,507 people work in Inland Northwest and live outside the county

Trend: Economies are defined by their Regions80,502 people live in the Inland Northwest and work outside the county

248,026 people work & live in Inland NorthwestStrategy 2: Your residents and workers come from throughout the region


Strategy 2: Think, plan and act regionallyBetween 2002 and 2012:32,096 more residents traveled over 50 miles to work32,198 more people left the area to find work30,185 more people living outside the area found work in the area


Companies are looking for your ability to bring a wide variety of resources to the table:Infrastructure and Public SerivcesIncentives and FinanceEducation and WorkforcePermittingPolitical jurisdictions are almost irrelevant

Strategy 3: Think collaboration, not competitionInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy #2: Collaboration is the New CompetitionForm creative new partnerships that will promote economic developmentInclude new partners like education and training, health care, major employers, lenders, utilities. Establish a leadership group that meets frequently, measures results and celebrates success.Understand which partner is best suited for which serviceNetwork with regional, state and national partners

Strategy 3: Think collaboration, not competitionInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy #3: Double Down on Retention & ExpansionMeeting the needs of existing businesses should be priority number 1!Most job growth comes from expansion of existing businesses in the communityMany businesses leave a home-town location because of a lack of expansion space or financingNew businesses look for customers, suppliers, strategic partners, and a quality workforce.

Strategy 4: Double down on retention and expansion


Strategy #3: Double Down on Retention & ExpansionStrategy 5: The best attraction strategy is a good retention & expansion strategy

Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015Site Selectors Survey, Area Development Magazine89% of companies looking for new site locations consider whether there are businesses performing similar activities in the area of search.

60% of corporate execs get their most important information from industry peers

75% of site selectors dont contact a community until after a short list is established

Total Projects: 93 (47 Expansion, 46 New)Projects connected with existing businesses: 78Average Jobs: 181High Jobs Number: 900 Average Square Feet: 157,000Average New Jobs: 256Average New Square Feet: 203,000Big Deals: 1 Project; 1,500 jobs, Mfg. 1M Sq. Ft.Strategy 5: The best attraction strategy is a good retention & expansion strategyInland Northwest Partners Staying Competitive in Economic Development September 17, 2015Dont get hung up on the big score. Big deals in site selection are few and far between.

Companies are looking for a good quality of life for their executives and employeesArts and CultureEducationDiversity of Housing OpportunitiesVaried Transportation OptionsRecreational OpportunitiesSupport For A Safety Net

Strategy #5: Place MattersStrategy 6: Place Matters: Enhance what Makes your Community LivableInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy 7: Emphasize the Small Business Strategy that Fits your CommunityMain Street RevitalizationTourism and RecreationMeat & Potatoes Small BusinessesInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy 7: Emphasize the Small Business Strategy that Fits your CommunityAccess to CapitalSmall Business AssistanceEconomic GardeningIncubation vs. AccelerationSmall Business Development CenterInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy 8: Develop a Workforce Strategy that improves skills needed by businessInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

There is a significant mismatch between business needs and workforce skills.

Trend: The Impact of Advanced Manufacturing Technology

Strategy 8: Develop a Workforce Strategy that recognizes the change in technology


Trend: The internet is changing the way that everyone does businessStrategy 8: Develop a Workforce Strategy that recognizes the change in technologyInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy 9: Fine Tune your Marketing, Web Presence and Social Networking

Have a user-friendly websiteLink your site with your regional economic development partnerEasily accessible public services75% of the research by a site selection company is done BEFORE you are contactedKeep your inventory of sites up to date


Strategy #2: Collaboration is the New CompetitionWhat Matters Most to Businesses & Site Selectors:Basic Community ServicesInfrastructure (Sewer, water, utility, connectivity)Ease of Permitting and Regulatory ProcessExisting Workforce SkillsLand/Building Prices & SupplyState and Local Tax StructureFlexibility & Availability of Incentives Access to Higher Education Legal Climate

Strategy 10: Make your ED Tookit about more than just incentivesInland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Strategy 10: Understand the Return on Investment (ROI) for Incentives

Successful economic development should help make fiscally stable local governmentUnderstand both the short and long term costs/benefits of your investmentsShort term: Cost of building a new roadLong term: Cost of maintaining that roadNeglecting basic government services can hurt a communitys economic futureIts all about fiscal impact!Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015

Final Words.

Economic Development is like baseball. Its hard work. To quote Tom Hanks in A League of their Own

It's supposed to be hard. If it wasn't hard, everyone would do it. The hard... is what makes it great.Inland Northwest Partners Staying Competitive in Economic Development September 17, 2015

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Workers

Sheet1WorkersRetirement Age Workers76,000,000Talent Pipeline48,000,000To resize chart data range, drag lower right corner of range.

staying competitive in economic development

Economy & Finance