Engaging Communities for Economic Development

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Engaging Communities for Economic Development. Staying 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?. Continued significant reduction in federal budgets - PowerPoint PPT Presentation

Transcript of Engaging Communities for Economic Development

Engaging Communities for Economic Development

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?Continued significant reduction in federal budgetsFocus on private sector oriented approaches vs. direct government subsidyShorter term Congressional approvals for critical programsPotential reorganization of key government agencies involved in economic and community developmentEngaging Communities for Economic Development

Major (and long term) Economic and Demographic Shifts Impacting Community and 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 ValuationSales Taxes based upon Sales RevenueIncome Taxes based upon WagesProperty Taxes based upon Property ValuesFees and Transfer Payments from other sourcesGlobalizationlayoffsforeclosuresclosingsDistress 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.

We are not replacing our retiring workers with our new workersOver 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.

DaytonMontgomery County2002201020022010Travel less than 10 miles66.20%60.50%60.50%54.20%Travel 10 to 24 miles19.50%22.30%22.60%23.90%Travel 24 to 50 Miles7.90%8.70%8.80%9.70%Travel Over 50 Miles6.30%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 information6. 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 communityIn 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 businessesworking for big businessPoliticians and senior regulators consistently and publically profess the value and importance of community banks to our economy, yet their recent actions suggest otherwiseThe 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, 2012Bank restructuring will continue to limit financing optionsThere 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: 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 SF

Source: Site Selection Magazine, May 2012Death of the Big Deal in Economic DevelopmentAnd the Data Shows.Even in Attraction.workforce & infrastructure rank higher than incentivesWhat Matters Most: Site Selectors Most Important CriteriaState and Local Tax StructureTransportation & Utility InfrastructureLand/Building Prices & SupplyEase of Permitting and Regulatory ProcessWorkforce SkillsLocal economic development strategyLegal ClimateAvailability of IncentivesState Economic Development Strategy

Ten Strategies to Stay CompetitiveThe need to develop a strategy is NOT changingThe need to develop strong partnerships is NOT changingThe need to provide quality services is NOT changingThe need to tailor your ED tools to the needs of your community is NOT changingWhats NOT Changing?

1. Think Strategic Doing vs. Strategic PlanningNetwork of NetworksPlan; Then Do, Then Plan AgainGo from planning to implementationKnow your goals and focus your effortsEngage the Community and the NetworksEd Morrison, Purdue UniversityWhats happening at EDA with their CEDS

2. Understand the ROI of your Economic Development ProgramCost / Benefit analysis for community investment of time and resourcesEconomic Development E > PFiscal Impact AnalysisEDA Triple Bottom Line: Equity, Environment, EconomyPolitical justificationUnderstandand takeinformed risk

3. Collaboration is the New CompetitionCompanies are looking for your ability to bring a wide variety of resources to the tableRegional collaboration: What is your communitys role in the region?Expand your partnership to include workforce, land use, transportation, philanthropic, hospitals, permitting

4. Make your collaborations effectiveLook for the key development Levers that help move projects forward: Transportation, Land Use, RegulationUnderstand who does what bestShare back office resources to focus on the delivery of services

5. Place Matters: Enhance what makes your community livableIdentify and leverage your strongest assetsRichard Florida: The Creative Class ?What makes your community special?Asset mapping on a local AND regional basisTactical urbanism

6. Double Down on Retention and ExpansionSometimes the best R & E does not involve incentives but simply helps solve problemsUnderstand your business community and what helps it growOrganized R & E program to track activity and performanceDont promise what you cant deliverR & E is still the Best Attraction StrategyCluster Strategy, Supply Chain, Key Partners

7. Expand workforce collaborations to include K-12 and Community CollegesRealign workforce programs to focus on two key priorities:Job Readiness training as a public prioritySpecific skill training in direct partnership with employersEngage employers more directly: Train for their job openings and for their future needs

8. Emphasize the Entrepreneurial Strategy that fits your communitySmall Business Economic Gardening1099 EconomyIncubation and Acceleration

9. Fine tune your financing and incentive toolkitUse state incentives strategicallyCreate local incentives that make sense for your communityProvide for transparency and accountabilityThe fewer the programs, the easier the dealStronger reliance on local financing and federal programs

10. Fine Tune your web presence and social networking90% of the research by a site selection company is done BEFORE you are contactedKeep your inventory of sites up to dateHave a user friendly websiteLink your site with your regional economic development partnerEasily accessible public services

Key QuestionsWhere are you, where do you want to be, how do you get thereHow 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 StepsThank you.