Presentation about demographic and economic trends that are changing the practice of economic development

1. Engaging Communities for
Economic Development
Staying competitive in community
development while the world is changing
around us!

2. What will the election of _______
mean for economic developers?
1) Continued significant reduction in federal
budgets
2) Focus on private sector oriented approaches
vs. direct government subsidy
3) Shorter term Congressional approvals for
critical programs
4) Potential reorganization of key government
agencies involved in economic and
community development

3. Engaging Communities for
Economic Development
Major (and long term) Economic
and Demographic Shifts Impacting
Community and Economic
Development
Ten Focused Strategies to keep
your Community Competitive in
Economic Development

4. Economy Workforce Technology

5. Major (and long term) Economic and
Demographic Shifts Impacting
Community and Economic Development
Economy Workforce Technology
Structural Older Workforce Changing
Change Business Models
Younger
Workforce
Government Wired Economic
Fiscal Issues Workers Development
Traveling Further

6. We are not replacing jobs lost through the
recession

7. The recovery from this recession is taking
longer than prior recessions

8. Distress on city / county budgets as the
recession ripples through the economy
Property Taxes based upon
Valuation
Income Taxes based upon
Wages
Property Taxes based upon
Property Values
Sales Taxes based upon
Sales Revenue
Fees and Transfer Payments
from other sources

9. State & Local budgets are lagging the
recovery

10. Public sector employment has declined
through the recession after years of growth

11. Major programs at the federal and state
levels have experienced major cuts.
12
10
8
6
4
2
0

12. We are not replacing our retiring workers
with our new workers
Over 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.

13. What percent of people have ever had a
tattoo or body piercing?
Over 40: 10%
Under 40: 40%

14. Employers have significantly increased
their use of part time workers.

15. Education continues to define
unemployment rates.

16. Out of necessity, workers are more mobile
--- they will travel further for a job
Dayton Montgomery County
2002 2010 2002 2010
Travel less than 10 miles 66.20% 60.50% 60.50% 54.20%
Travel 10 to 24 miles 19.50% 22.30% 22.60% 23.90%
Travel 24 to 50 Miles 7.90% 8.70% 8.80% 9.70%
Travel Over 50 Miles 6.30% 8.60% 8.10% 12.20%

17. 5. The Internet = Speed, democratization
of information

18. 6. Technology: Impact on Manufacturing,
Service, Distribution

19. The 1099 Economy is becoming a more
important part of your community
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.

20. Entrepreneurship: More small
businesses…working for big business
In 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.

21. Bank restructuring will continue to limit
financing options
“Politicians and senior regulators consistently and
publically profess the value and importance of
community banks to our economy, yet their recent
actions suggest otherwise…The 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, 2012

22. There is a significant consolidation of
banking institutions

23. The number of community banks has
declined significantly

24. Death of the Big Deal in Economic
And the Data Shows….
Development
• Total Projects: 93 (47 Expansion, 46 New)
• 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 SF
Source: Site Selection Magazine, May 2012

25. Even in Attraction….workforce &
And the Data Shows….
infrastructure rank higher than incentives
What Matters Most: Site Selectors Most Important
Criteria
1. State and Local Tax Structure
2. Transportation & Utility Infrastructure
3. Land/Building Prices & Supply
4. Ease of Permitting and Regulatory Process
5. Workforce Skills
6. Local economic development strategy
7. Legal Climate
8. Availability of Incentives
9. State Economic Development Strategy

26. Ten Strategies to Stay
Competitive

27. What’s NOT Changing?
• The need to develop a strategy is NOT
changing
• The need to develop strong partnerships is
NOT changing
• The need to provide quality services is NOT
changing
• The need to tailor your ED tools to the needs
of your community is NOT changing

28. 1. Think “Strategic Doing” vs. “Strategic
Planning”
• Network of Networks
• Plan; Then Do, Then Plan Again
• Go from planning to implementation
• Know your goals and focus your efforts
• Engage the Community and the Networks
• Ed Morrison, Purdue University
• What’s happening at EDA with their CEDS

29. 2. Understand the ROI of your Economic
Development Program
• Cost / Benefit analysis for community
investment of time and resources
• Economic Development E > P
• Fiscal Impact Analysis
• EDA Triple Bottom Line: Equity, Environment,
Economy
• Political justification
• Understand…and take…informed risk

30. 3. Collaboration is the New Competition
• Companies are looking for your ability to bring
a wide variety of resources to the table
• Regional collaboration: What is your
community’s role in the region?
• Expand your partnership to include workforce,
land use, transportation, philanthropic,
hospitals, permitting

31. 4. Make your collaborations effective
• Look for the key development Levers that help
move projects forward:
– Transportation, Land Use, Regulation
• Understand who does what best
• Share back office resources to focus on the
delivery of services

32. 5. Place Matters: Enhance what makes
your community livable
• Identify and leverage your strongest assets
• Richard Florida: The Creative Class ?
• What makes your community special?
• Asset mapping on a local AND regional basis
• Tactical urbanism

33. 6. Double Down on Retention and
Expansion
• Sometimes the best R & E does not involve
incentives but simply helps solve problems
• Understand your business community and
what helps it grow
• Organized R & E program to track activity and
performance
• Don’t promise what you can’t deliver
• R & E is still the Best Attraction Strategy
• Cluster Strategy, Supply Chain, Key Partners

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

35. 8. Emphasize the Entrepreneurial Strategy
that fits your community
• Small Business
• Economic Gardening
• 1099 Economy
• Incubation and Acceleration

36. 9. Fine tune your financing and incentive
toolkit
• Use state incentives strategically
• Create local incentives that make sense for
your community
• Provide for transparency and accountability
• The fewer the programs, the easier the deal
• Stronger reliance on local financing and
federal programs

37. 10. Fine Tune your web presence and social
networking
• 90% of the research by a site selection
company is done BEFORE you are contacted
• Keep your inventory of sites up to date
• Have a user friendly website
• Link your site with your regional economic
development partner
• Easily accessible public services

38. Key Questions and Next Steps
Key Questions
• Where are you, where do you want to be, how
do you get there
• How 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?