10 Strategies to Help Your Community Stay Competitive

Real World 21st Century Economic
Development: Helping Your Community Stay on
the Front Edge
Wyandot County Economic Development
6th Annual Dinner
Mark Barbash, EVP,
Strategic Initiatives
Finance Fund

FINANCE FUND: WHO WE ARE
• Statewide nonprofit financial
| 614.221.1114 T 614.221.7493 F | www.financefund.org
intermediary
• Established in 1987
• Founded to connect low-income
communities with public and private
sources of capital
 State, Federal, Banks, Private Institutions
.

FINANCE FUND: WHAT WE DO
Simplify the complexities of the financing
process to help good ideas come to life – ideas
that change systems, create jobs, address
community needs, turn things around and
improve the quality of life.
To date, Finance Fund and its affiliates have
invested more than $296.4 million in housing,
economic development, and community facility
projects leveraging over $1.2 billion.

FINANCE FUND: WHAT WE DO
Bring financial resources to urban and rural
low-income communities in a wide range of
projects:
• Economic Development (job creation and
neighborhood revitalization)
• Small Business Lending
• Health care facilities and equipment
• Commercial Real Estate Development

FINANCE FUND: CURRENT PROGRAMS
• PreDevelopment Grant
• Economic Development Grant
• Linked Deposit Fund
• New Markets Tax Credit Loan Fund
• Small Business Loan Fund
• Community Health Loan Fund
• Healthy Foods Financing Initiative

Is our
economy
coming
back?
On the one
hand….
On the other
hand…
Wyandot Staying Competitive in Economic Development Nov 10, 2014

On the One Hand: Jobs are Coming
Back..56th Straight Month of Growth

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

…Wages are not growing along with the
jobs…and

Trend: Business Lending could
show a turnaround
10
…family net worth has declined and is just
starting to recover

On the One Hand: The number of long
term unemployed continues to drop

On the Other Hand: Many people have
only been able to find part time work

On the One Hand: Bank Lending Appears to
be Coming Back
Trend: Ohio’s economy is
expected to continue recovery

show a turnaround
14
On the Other Hand: Lending Standards
have Tightened, Esp for Small Banks

show a turnaround
15
Ohio’s Economic Recovery

show a turnaround
16
Ohio’s recovery has been somewhat faster
than the nation’s…

…Ohio & the region are showing strong
manufacturing growth…
Trend: Ohio & the Midwest are
leading manufacturing recovery

…auto jobs are coming back in Ohio after
the recession & bailout…
Trend: Ohio & the Midwest are
leading manufacturing recovery

…Ohio’s is expected to continue to grow in
the next few years…and…
2009
1994
2013
2015
2001
National GDP
Ohio GDP

…Ohio ranks higher in the eyes of Site
Selectors
Site Selection Magazine 2014 Top Business Climate
Rankings
Survey of Key CEOs 9
Economic Competitiveness 9
New Facilities 2
Mature Company Tax Climate 5
New Company Tax Climate 5
Overall Ranking 5th

Strategy 1: Analyze and understand what
drives your local and regional economy
• Who are the major
employers
• Which industries are
growing
• How does your
economy support the
community

Trend: Economies are defined
by their Regions
Strategy 2: Think, plan and act regionally
Economic
growth is not
based on
boundary lines.
The Solar
Supply Chain in
Ohio

Trend: Economies are defined
by their Regions
Strategy 2: Think, plan and act regionally
4,123 people
work in
Wyandot
County and
live outside
the county
5,354 people
live in the
county and
work outside
the county
3,973 people work and live in
Wyandot County

Strategy 3: Think collaboration, not
competition
• Companies are looking for your ability to bring a
wide variety of resources to the table:
– Infrastructure
– Incentives and Finance
– Education and Workforce
– Permitting
• Political jurisdictions are almost irrelevant
• You need to be ready way before the prospect
enters the door

Strategy #2: Collaboration is the
New Competition
Strategy 3: Think collaboration, not
competition
• Form creative new partnerships that will promote
economic development
• Include 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
service
• Network with regional, state and national partners

Strategy #3: Double Down on
Retention & Expansion
Strategy 4: Double Down on Retention and
Expansion
• Meeting the needs of existing businesses should be
priority number 1!
• Most job growth comes from expansion of existing
businesses in the community
• Many businesses leave a home-town location
because of a lack of expansion space or financing
• New businesses look for customers, suppliers,
strategic partners, and a quality workforce.

Strategy #3: Double Down on
Retention & Expansion
Strategy 5: The best attraction strategy is a
good retention & expansion strategy
• 89% 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 don’t contact a community
until after a “short list” is established
Site Selectors Survey, Area Development Magazine

Strategy 5: The best attraction strategy is a
good retention & expansion strategy
• Total Projects:
– 93 (47 Expansion, 46 New)
–Projects connected with existing
businesses: 78
–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 Sq. Ft.
Don’t get hung
up on the big
score. Big
deals in site
selection are
few and far
between.

StSrtartaetgegyy # 65:: PPllaaccee M Maatttteerrss: Enhance what
Makes your Community Livable
• Companies are looking for a good quality of life for
their executives and employees
– Arts and Culture
– Education
– Diversity of Housing Opportunities
– Varied Transportation Options
– Recreational Opportunities
– Support For A Safety Net

Strategy 7: Emphasize the Small Business
Strategy that Fits your Community
• Main Street Revitalization
• Small Business Assistance
• Economic Gardening
• 1099 Economy
• Incubation vs. Acceleration
• Small Business Development Center

Strategy 8: Develop a Workforce Strategy
that recognizes changes in the economy
The pipeline of
younger workers
is significantly
less than the
number of
retirement age
workers.

that improves skills needed by business
There is a
significant
mismatch
between
business needs
and workforce
skills.

Trend: The Impact of Advanced
Manufacturing Technology
that recognizes the change in technology

Trend: The internet is changing the
way that everyone does business
that recognizes the change in technology

Strategy 9: Fine Tune your Marketing, Web
Presence and Social Networking
• Have a user-friendly website
• Link your site with your regional economic
development partner
• Easily accessible public services
• 75% of the research by a site selection company is
done BEFORE you are contacted
• Keep your inventory of sites up to date

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

Strategy 10: Fine tune your Investment
Toolkit and know your community ROI
• Successful economic development should help
make fiscally stable local government
• Understand both the short and long term
costs/benefits of your investments
– Short term: Cost of building a new road
– Long term: Cost of maintaining that road
• Neglecting basic government services can hurt a
community’s economic future
• It’s all about fiscal impact!

Strategy 10: Fine tune your Investment
Toolkit and know your community ROI
Property Taxes based upon
Valuation
Income Taxes based upon
Wages
Sales Taxes based upon Sales
Revenue
Fees and Transfer Payments
from other govt sources

Strategy #2: Collaboration is the
New Competition
What Matters Most to Site Selectors:
Strategy 10: Make your Economic
Development more than just incentives
1. Transportation Infrastructure
2. Ease of Permitting and Regulatory Process
3. Existing Workforce Skills
4. Land/Building Prices & Supply
5. Utility Infrastructure
6. State and Local Tax Structure
7. Flexibility & Availability of Incentives
8. Access to Higher Education
9. Legal Climate

Final Words….
Economic Development
is like baseball. It’s 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.”

QUESTIONS?
THANK YOU!
Mark Barbash, EVP, Strategic Initiatives
markbarbash@financefund.org
(614) 774-7599
Finance Fund
www.financefund.org
(800) 959-2333 - (614) 221-1114

10 Strategies to Help Your Community Stay Competitive

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