Southern Illinois:

Garden of the Gods

Southeastern COI:

2008-2012 Strategic Roadmap

TBA, 2008

TBA

ViTAL Economy Alliance

Frank Knott

,

Project Lead

;

Stan Halle

,

Senior Editor

;

Jim Haguewood, Rob Beynon, & Neil Gamroth

,

Principal Economic Researchers

[email protected]; http://www.vitaleconomy.com

©2008 ViTAL Economy, Inc.

— 1 —

COI Perspective:

Southeastern

Challenges:

• Get local gov’t officials involved • Reverse population decline • Increase tax revenue base • Increase average wage • Change age demographic • Increase incentives for broadband penetration in the rural areas • Low awareness of ICT benefits • Create a more diversified economy • Overcome apathetic attitudes • Limited affordable housing

Sense of Urgency

• We MUST stop the decline, we are asleep at the wheel.

• Shock Value: “If you are going to be poor, this is the place to be!” • What is our legacy going to be for our children? There is declining infrastructure, tax base declining, demographics getting worse • WHAT CAN BE? We need to paint a compelling picture of the future

Opportunities:

• Get county boards & city councils engaged • Show local stakeholders that they have a “VOICE”!

• Further enhance working relationships with other communities • Become a positive place to live, work and play • Promote area as an affordable place to live • Challenge negative thinking • Promote and develop self-reliance in our community • Foster entrepreneurship

©2008 ViTAL Economy, Inc.

Regional Economic Benchmarks

2004 2012 Population Total Employed Average Wage Total Wages 49,454 21,903 27,494 $602.2M

56,000 25,500 40,276 $1,027B

See: RA Chapter 6

— 2 —

Is SI worth fighting for?

SE COI

2007-2012 Goals 2,158 New Jobs @$43,500 4,380 Existing Jobs Raised by $5,000/Year 1,438 jobs at the new average wage $40,276 34% Private Payer Healthcare % $500M EAV Tax Base Broadband Penetration Rate – 50% $44,420,000 Tourism Expenditures $180,000 Regional Room Tax Revenues

Is SI worth fighting for?

Connecting SI’s Assets and Trends to 2012 Goals

CSI 2012 M/S1 Goals*

Regional Assets

•

Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas

Global & Nat’l Trends

•

Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year

• • •

SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth Robust education and training resources position SI for global workforce training opportunity Mild climate, unique natural environment, active lifestyle assets, important factors for KBE, tourism and

+

arts and culture amenities, attractive quality of life characteristics are senior living growth

• • • •

KBE activity now accounts for 50% plus of GDP growth, 3x’s growth in occupations and pays double the average wage of other jobs By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources 3 of 4 factors required to support KBE activity in rural America are SI strengths 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)

•

Inter-modal logistics, transportation and distribution resources have a strong foundation in SI

•

Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year

•

SI has plentiful legacy and alternative energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030

•

74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030

=

27,298 New Hi-Wage Jobs 41,461 Existing Jobs >$5,000/Yr $642 Million New KBE Activity 1,600+ Firms >$2 Billion New Annual Wages 4,500+ Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment

Note: Regional Assets (Chap 2); Trends (Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007

©2008 ViTAL Economy, Inc.

— 3 —

Potential SI Jobs by Sector

(1 of 2)

•

Global growth opens up opportunities to expand SI economy beyond its traditional growth rate

•

10 million U.S. worker shortage is an opportunity for SI workforce development resources

•

Growth in services exports enable SI to move away from uncompetitive legacy economic activities



ICT investments contribute 33% to U.S. productivity growth…this validates importance of NPCOI



SI’s 64% increase in broadband access can better leverage six-fold increase in e-commerce activity



4 of 5** factors in rural KBE growth are SI strengths — need to be leveraged for SI economic growth



Livable community assets present in SI are an



attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening” of society is creating innovation opportunities

©2008 ViTAL Economy, Inc.

See: RA Chapter 1

— 4 —

Is SI worth fighting for?

Global Workforce Opportunities

18,750

New Jobs KBE

8,023

New Jobs

• • • • •

**Five Factors are:

High Quality Workforce College or Universities Local Amenities Transportation Infrastructure Size

Potential SI Jobs by Sector

(2 of 2)

•

77 million retiring baby boomers present an affluent senior living growth opportunity for SI Is SI worth fighting for?

Senior Living

3,676

New Jobs



SI energy assets and knowledge are in the sweet spot of energy priorities for growth

Energy & Mining

5,680

New Jobs

•

Preferred tourism growth sectors indicate SI is positioned for accelerated tourism growth

Tourism

4,450

New Jobs



Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America. SI location and logistics assets position it for growth

Log/Trans//Dist

1,675

New Jobs

Climate of Economic Opportunity = an additional 10,210 new jobs NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)

©2008 ViTAL Economy, Inc.

See: RA Chapter 1

— 5 —

Leadership: the Key to Success

Is SI worth fighting for?



PEOPLE

are the most important

Connect SI

their

time

,

talent

and

treasure

to achieve

SI

asset who volunteer and commit goals o

Selection:

Choice of leaders should be based upon active participation in achieving the

CSI

Strategy — LAC, COI, cluster & action team leadership should include a mix of styles, connections and influence (

see RA Chp. slides 29-30

) o o o o

Training:

Volunteers should be rewarded with yearly education and self improvement programs — provides ROI for participation; enhances leadership effectiveness; and improves strategic outcomes

Support:

Leadership is a volunteer effort that requires staff support to achieve desired results —

CSI

staff needs to proactively engage leaders and fill initiative gaps as identified

Motivation:

Volunteer leaders’ efforts are fueled by recognition of their impact and accomplishments —

CSI

must regularly highlight leadership and community progress toward goals and celebrate short-term wins Focus: CSI staff assist leaders in consistently reinforcing strategic direction, current status, and immediate tasks at hand — maintaining focus yields better results

CSI Leaders, volunteers & staff must function as true catalysts — stimulating the transformation of SI’s economy —

©2008 ViTAL Economy, Inc.

— 6 —

SI Vision 2012

Is SI worth fighting for?

Southern Illinois will:



Be the fastest growing economic region in Illinois



Be the regional gateway:

 

From America’s Heartland to the global economy From the global economy to America’s Heartland



Be named a national and regional model for collaborative, regional rural economic transformation



Achieve a positive balance between livability & sustainable growth

 What follows are four Goals to achieve this Vision and transform

SI

 Each Goal has four Strategies (16 total)  Each Strategy has four Actions (64 total)

©2008 ViTAL Economy, Inc.

— 7 —

SI’s Transformation: Four Measurable Goals

Is SI worth fighting for?



GOAL #1: Transform SI Mindset and Behavior

– Increase

CSI

champions and collaborative funding by 300% and build a climate of unlimited economic opportunity through creation of 1,600 KBE firms by 2012 

GOAL #2: Transform SI Economic Performance –

Increase

SI

GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 

GOAL #3: Transform the SI Enabling Environment –

Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce

SI’s

#1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50% by 2012 (RA Chp. 1.05) 

GOAL #4: Transform SI Leadership and Governance Frameworks –

Realize “Crossing the Boundaries” vision of

Connect SI

by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic

SI

economy; accomplished by 2012

©2008 ViTAL Economy, Inc.

— 8 —



#1: Transform

SI Mindset and Behavior

Is SI worth fighting for?

GOAL #1: Transform SI Mindset and Behavior

– Increase

CSI

champions and collaborative funding by 300% and build a climate of unlimited economic opportunity by creating 1,600 KBE firms by 2012 

STRATEGY 1A

– Develop and implement a regionally-led collaborative funding strategy raising $1.8M+ per year through 2012 and achieve a 4:1 external leverage of regional investment by 2012

(RA Chp. 7.03, slides 28, 29)



STRATEGY 1B

– Implement a community engagement strategy that mobilizes 3,000+

Connect SI

community champions to support the

CSI

strategy 

STRATEGY 1C

– Launch a regional branding and communications strategy that embeds awareness and support of

Connect SI

across 20% of

SI

population by 12/31/2009 and 50% by end of 2010 

STRATEGY 1D

– Shift the focus of

SI

Community and Economic Development (CED) from declining legacy industries to high growth Knowledge-Based Enterprise (KBE) innovation sectors by creating 16,000 KBE jobs by 2012, supported by implementation of an Integrated Finance Framework

©2008 ViTAL Economy, Inc.

— 9 —



#2: Transform

SI Economic Performance

Is SI worth fighting for?

GOAL #2: Transform SI Economic Performance –

Increase

SI

GRP by $3.5 billion/year, its average annual growth rate from 1.34% to 3.85%, and its state and local tax revenues by $200M+ per year by 2012 

STRATEGY 2A

– Create 16,379 new jobs at $43,500 by 2012, and an additional 10,919 new jobs from $36,517-$40,785 per year by 2012 — healthcare benefits are to be included with all new jobs 

STRATEGY 2B

– Improve 41,461 workers incomes by $5,000/year by 2012 

STRATEGY 2C

– Develop and implement an investment attraction strategy to increase

SI

global export value by $1Billion/year by 2012

(RA Chp. 5.01, 5.05)



STRATEGY 2D

– Shift the ratio of private sector vs. public sector income in

SI

from 46:54 to U.S. ratio of 65:35 by 2012 to increase

SI

climate of risk taking and diversify income sources of

SI

economy

(RA Chp. 7) ©2008 ViTAL Economy, Inc.

— 10 —



#3: Transform

SI Enabling Environment

Is SI worth fighting for?

GOAL #3: Transform SI Enabling Environment –

Create a collaborative regional culture of livable communities with planning and zoning standards; with global best practice broadband penetration; and reduce SI’s #1 ranking in 15 of 18 Illinois Poverty Summit indicators by 50%, by 2012

(RA Chp 1.05)



STRATEGY 3A

– Define

SI Livable Community Standards

by end of 2009 that leverages the planning and design resources of SIU, UI and Urban Land Institute

(RA Chp. 3.04)



STRATEGY 3B

– Improve regional health outcomes by reducing cardiovascular disease mortality from 215 to 166 per 100,000 by 2012, a 23% reduction

(RA Chp. 6.06)



STRATEGY 3C

– Achieve a 54% global best practice broadband penetration rate in

SI

by 2012 and increase Network Providers revenues $45M/year by responding to industry cluster and regional COI connectivity requirements 

STRATEGY 3D

– Develop a collaborative education and training strategy across

SI

that achieves a 32% Associate Degree and 85% High School Diploma or higher to meet 2012 workforce requirements

(RA Chp. 5.02) ©2008 ViTAL Economy, Inc.

— 11 —



#4: Transform SI Leadership and Governance Frameworks

Is SI worth fighting for?

GOAL #4: Transform SI Leadership and Governance Frameworks –

Realize “Crossing Boundaries” vision of

Connect SI

by expanding the base of collaborative leaders by 500 persons and implementing regional collaborative governance frameworks to successfully fund, resource and manage a dynamic

SI

economy; accomplished by 2012 

STRATEGY 4A

– Create a

“Crossing Boundaries Institute”

focused on training and developing collaborative leaders to manage/drive a 21 st century regional

SI

economy — exhibits

3C behaviors

: Collaboration, Connectivity and Changed Spending 

STRATEGY 4B

– Establish a regional CED planning, strategy and data service for local communities as well as a benchmarking portal to measure

SI

progress in achieving

Connect SI

goals and improving relative to global best practice

SI

innovation economy readiness 

STRATEGY 4C

– Support, maintain and resource four regional COI’s, Healthcare COI, Network Provider COI, 12 industry cluster teams, and action plan implementation teams

(RA Chapter 7.04 slides 27, 32)



STRATEGY 4D

– Mobilize, connect and align non-profit community development and social service groups to create a collaborative approach to achieve the 2012

Connect SI

CED growth goals

©2008 ViTAL Economy, Inc.

— 12 —

Connect SI Leadership Board Greater Egypt COI Southeastern COI Southern Five COI Greater Wabash COI

Phase 1 => Phase 2 => Goals

Phase 1 Outcomes

GIS Asset Maps Broadband Strategy Economic Benchmarks Regional Economic Strategy Healthcare Strategy Regional Economic Framework Five-Year Measurable Goals Implementation & Funding Plan Healthcare COI Network Provider COI

COI Transition to Phase II Phase II Structure and Strategy

LEADERSHIP BOARD

GE COI SE COI S5 COI GW SOI NP COI Healthcare COI

Youth Engagement Strategy Integrated Finance Strategy

Cluster Cluster Cluster Cluster Cluster Cluster Cluster Cluster Cluster

Innovation Ecosystem Industry Cluster Analysis and Strategy Crossing Boundaries Institute

Is SI worth Fighting for?

2012 Goals

27,298 New Hi-Wage Jobs 41,461 Existing Jobs >$5,000/Yr $642 Million New KBE Activity 1,600+ Firms >$2 Billion New Annual Wages +4500 Families with Healthcare Coverage Lift 10,000 Citizens Out Of Poverty $200 Million Information Technology Investment

Industry Clusters: See RA Chapter 7 Slide 27

©2008 ViTAL Economy, Inc.

— 13 —

        

Phase 2 Industry Cluster Focus to Achieve SI Goals

Is SI worth fighting for?

Tourism Bio-Agriculture Knowledge Based Enterprises (KBE)         Healthcare Technology Products & Services Advanced Manufacturing Recreational, Marine, Hunting, Technology Products & Services Visual Creative & Performing Arts and Services International Incubation and Innovation Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing

All new jobs created by Industry Clusters will be targeted to include private payer health benefits for workers and families

Senior Living

Education & Training

(also supports all the other clusters)

©2008 ViTAL Economy, Inc.

— 14 —

Measurable Indicators of Progress Towards 2012 CSI Goals

Healthcare Economics are Transformed!

Is SI worth fighting for?

SI is a Global Broadband Leader

   

Insured population +10% Medicaid Medicare Uninsured -26% +18% -32% 60.00

50.00

40.00

30.00

20.00

10.00

0.00

54% 24% 12% Southern Illinois USA-Average 2005 34% USA-Rural Best in World U.S.

IL SI

SI Becomes

70% 60% 50% 40% 30% 20% 10% 0%

an Innovation Economy

64% 67% 46% 36% 33% 54%

Private Sector Payroll & Benefits Transfer Paym ents, All Gov't & Education Earnings It’s Time to Go Global!

U.S.

Illinois SI 12 10 8 6 11% 8.4% 4 2 2.4% 0

Exports as a % of GDP

©2008 ViTAL Economy, Inc.

— 15 —



2012: What SI Success Looks Like

Is SI worth fighting for?

Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds



SI’s historic liability of remoteness and lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle treasured, respected, sought after and envied — there is only one SI in the World



SI communities see themselves in a new light; they are respectful of their place; they see themselves as gateways to a land that is "The Garden of The Gods"



Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time



SI is a place of welcome for people of all cultures whether visiting or living here; in the land of "The Garden of the Gods” all are welcome and of value



It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity; SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired

©2008 ViTAL Economy, Inc.

Source: ViTAL Economy Alliance

— 16 —

The Call to Action

Is SI worth fighting for?

•

These

Goals/Strategies/Actions

are ambitious but are, in fact, achievable:

•

Unless you strive for stretch goals — you will never get to “adequate”

•

The key questions each of you must answer:

•

Is SI worth fighting for? If not now, when?

•

Are you willing to take control of your destiny?

“

Let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance

”

—

FDR 1933 Speech to turnaround the Country ’ s pessimistic outlook —

©2008 ViTAL Economy, Inc.

— 17 —