Talent, Place & Prosperity !

Joe Cortright

Synopsis

• The City Vitals Framework • City Observatory • Distinctiveness • Prices & Places

Cortright Bio

ImpresaPolicy advice to public and private leaders on

economic policy

EconData.Net Data for understanding regional economies

Brookings Applying industry clusters to economic development

CEOS for Cities Benchmarking metropolitan econonomies

City Observatory What matters to city success

Framework

Talent Innovation Connections Distinctiveness

Mission

City Observatory is a virtual think tank, contributing original data-driven research and regular commentary on what matters to city success, focused on how building great places to live can attract, develop and harness talent to create widely shared opportunity.

CityObservatory.org

CityReports

• Young and Restless • Lost in Place • Surging City Center

Jobs • Less in Common

Talent & Connections

Talent determines prosperity

Talent now seeks placeThinking about how you will look for and choose your next job, which of the following statements best reflects your opinion? (Asked of 1,000 25-34 year old college graduates)

Look for the best job I can find. The place where it located is pretty much a

secondary consideration.

1

0% 18% 35% 53% 70%

Look for a job in a place that I would like to live

Concentration of College-educated 25-34 year-olds

3 miles from CBD

Growth of 25 to 34 year-olds

1990 to 2000 +30 Percent

!Share of

25 to 34 year-olds with a 4-year degree

54 Percent

Nationally: Close-in neighborhoods growing twice as fast

0%

10%

19%

29%

38%

Metro Close-In

What young talent seeks

• Dense • Diverse • Interesting • Bikeable • Walkable • Transit-Served

The new reality of economic development:The HR Department now drives business location and expansion decisions

!

• Where can we find lots of talented workers?

• Where can we easily attract more?

For companies hoping to hire top talent, the simple fact is that most tech workers want to live and work in the city.

Moving to or expanding downtownCity Companies

San Francisco Pinterest, Visa, Yahoo,

Chicago Archer Daniels Midland, Google, United, Sears, Hillshire Brands

Austin Cirrus Logic

Atlanta Coca Cola

Seattle Amazon

Boston Biogen/IDEC

New York Google, UBS

Detroit Quicken Loans

Surging City Center Job GrowthJoe CortrightDillon Mahmoudi

February 2015

cityobservatory.org

US: Job growth centralized

14

For the purposes of our analysis, we divide our data into two time periods: 2002 to 2007 and 2007 to 2011. The former period coincides with the economic expansion following the 2001-02 national recession. The latter period measures from the economic peak through the trough of the Great Recession and the early part of the recovery from that downturn.

Figure 2 shows the pattern of employment growth for city centers and surrounding areas for these two time periods. For brevity, we refer

to city centers as the “core” and the remainder of the metropolitan area outside the core as the “periphery.” The core or city center is defined using our three-mile radius around the center of the central business district.

In the economic expansion of the middle part of the last decade, employment growth was much stronger in the periphery than in the urban core. In the aggregate, employment in the periphery of our 41 metropolitan areas expanded at an annual rate of 1.2 percent between 2002 and 2007.

Figure 2: Core and Periphery Job Growth, 2002-07 and 2007-11

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

City Center City CenterPeriphery Periphery

2007-112002-07

PeripheryCity Center

0.1%

-0.1%

0.5%

1.2%Av

erag

e A

nnua

l Gro

wth

VC flowing to cities

San FranciscoSan Jose

BostonNew York

Los AngelesWashington

San DiegoChicago

AustinSeattle

PhiladelphiaDallas

Baltimore

Venture Capital Investment (Millions)

0 2,500 5,000 7,500 10,000

City/Walkable Suburb Other Suburb

Source: R. Florida, Startup City, 2014

Innovation

The expanding Silicon Forest

© Heike Mayer. 2008 -- used by permission

2008

Entrepreneurial Portland

Of 51 largest Metros, Portland ranks: • 4th in small businesses per capita

• 4th in self-employment rates

• 5th (smallest) in average firm size

• 7th in patents per capita

• 14th in venture capital per capita

Creative Portland

• Of 51 largest Metros, Portland ranks: • 3rd in Bandcamp

• 3rd in Kickstarter

• 3rd in Indie-GoGo

• 16th in Reverbnation

• Ranked 6th overall by Forbes

Forbes, America’s Most Creative Cities, July 2014

Distinctiveness

Differences matterMichael Porter

“Competitive strategy is about being different.”

!

Jane Jacobs

“The greatest asset that a city can have is something that's different from every other place.”

Judy Garland

“Always be a first rate version of yourself and not a second rate version of someone else.”

Physical activity

• Compared to the average for the US, Portlanders are:

• Twice as likely to go camping • 60% more likely to go hiking or backpacking • 40% more likely to golf or hunt • Region ranks last in theme park attendance

• Oregonians rank lowest in sedentary life styles and 2nd highest of vigorous physical activity

Recreationally-minded

In the late 60s the jogging craze takes off in many towns led by Eugene Oregon

A guy starts selling Japanese running shoes out of the back of his Plymouth Valiant

Athletic & Outdoor Cluster

Athletic & Outdoor Cluster

• 14,000 Employees • 700 firms with a payroll • 3,200 “non-employer” firms • Average wage: $82,700

Spinoffs/Startups

Learn more about clusters

Prices & Places

CityAdvantage

CityAdvantage

C2ER’s COLI

60 ubiquitous commodities

Place State Month Year

Updated March 2015

Grocery Store Names #1 #2 #3 #4 #5In Order of Prices Below #6 #7 #8 #9 #10

Grocery Items

Individual Establishment PricesAverage

1 T-Bone SteakPrice per pound

2 Ground Beef or Hamburger MeatPrice per pound, lowest price (min 80% lean)

3 Pork Sausage1 lb. of Jimmy Dean or Owen brand Size:(use other sizes only when 1 lb.-16 oz.- Price:size is not available in pure pork variety) Size:

Price:

4 Frying ChickenWhole uncut: price per pound, lowest price

5 Chunk Light Tuna5 or 6 oz. can, Starkist orChicken of the Sea

6 Whole Milk1/2 gallon, lowest price

7 Eggs1 dozen, grade A or AA, large

8 Margarine1 lb., Blue Bonnet or Parkay, stick form

9 Parmesan Cheese, Grated8 oz. canister, Kraft brand

10 Potatoes5 lb. sack, white or red, lowest price

11 BananasPrice per pound

12 Iceberg LettuceHead (approximately 1-1/4 lb.)

13 White Bread Size:Price loaf with lowest Price:price per oz. in each store Size:

Price:

COST OF LIVING INDEX PRICE REPORT

CityAdvantage

Supermodel/economist� Cindy�

Crawford

“Arugula� is� how� I� define� cities.� I� go� to� a� grocery� store, and either you can get arugula or you can’t.”

Jessie Handbury

“Consumers in larger cities have access to more varieties of products at a lower average price . . .” !

Groceries: • New York City: 97,000 varieties • Des Moines: 32,000 varieties = 10% lower cost in NYC

• Portland: 4 Miles less per day than average Metro

Portland’s Green Dividend• Portlander’s Drive 16% less than

US average • Transit commute 2x US average • Compact job pattern • Walkable, diverse

neighborhoods • Net savings: $1.1 billion out of

pocket; $1.5 billion in time

Restaurants per capita, Metro

Keys to a Prosperous City

• Get smart • Attract talent • Build a great place • Encourage innovation • Capitalize on your distinctiveness