Transcript Are We On The Same Page? Understanding What Makes Good Communities Great A presentation for the by Jay Garner, CEcD, CCE President and Founder Garner Economics,

Are We On The Same Page?
Understanding What Makes
Good Communities Great
A presentation for the
by Jay Garner, CEcD, CCE
President and Founder
Garner Economics, LLC
8.16.2011
©2011 Garner Economics, LLC
This presentation can not be reproduced without the expressed
consent, written or verbal, of Garner Economics.
Who We Are
Garner Economics provides creative, strategic
and executable value to companies,
communities and organizations globally.
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Who We Are
We are specialists in site location and labor analysis for
the food sector and have a joint venture with Primus
Builders in food site and building certification.
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Some of Our Clients
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A Sample of Our Experience with Primus
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What is Economic Development?
Economic Development = wealth
building.
How do you achieve economic
development?
 Hunters (recruitment)
 Gardeners (entrepreneurial)
 Nurturers (support existing businesses)
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The Main Thing About the
Economic Development
Process is…
Attracting investment and
jobs is highly competitive,
and …
Being TOTALLY prepared
creates a competitive
advantage.
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…But the Speed of
Change and Uncertainty is
Scary!
“First, if it is not apparent to you yet, it will be soon:
there is no magic bullet for this economic crisis, no magic
bailout package, no magic stimulus…We are going to
have to learn to live with a lot more uncertainty for a lot
longer than our generation has ever experienced.”
Thomas L. Friedman
New York Times
February 1, 2009
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What Is The Most Important
Ingredient To Economic Development
Success?
Leadership is essential for success
 With good leadership you can get the
other ingredients you need for success.
 Without good leadership you can’t
maintain the other ingredients…even if you
have them.
 Good leaders cultivate your talent and the
resources for your economic engine.
Leadership will determine the winners and
losers!
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What Do Successful Communities
Have in Common?
A common vision for the future by the populous.
A desire and commitment by both public and
private leadership to achieve success.
A desire to unite for the good of the community
and resolve divisiveness.
The ability to adapt and change (quickly) your
strategy based on local and global economic
conditions.
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Jobs!
Where are they coming from, going to and types?
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Top ranking destination countries
by estimated jobs – 2009 (08)
Source: IBM Global Business Services, 2010
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Top ranking origin countries by estimated
jobs - 2009 (08)
Source: IBM Global Business Services, 2010
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Top ranking destination states/provinces in
North America by estimated jobs - 2009 (08)
Source: IBM Global Business Services, 2010
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The
Site Selection
Process
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Facility Siting Process Fundamentals
PROFIT DRIVEN
Investment for purpose of return. Business is in business
to make a profit.
DEADLINE DRIVEN
Both the site selection process and the project.
COMPETITIVE
Multiple location options. We are looking for reasons to
exclude you after the initial cut.
COMPREHENSIVE
Complex decision involving analytical and subjective
analysis.
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Facility Siting Process
Fundamentals and Trends
Use of GIS and the internet means that the initial site search
process is significantly shorter. Speed and accuracy are King!
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Facility Siting Process
Fundamentals and Trends
Local Newspapers
Private Data Sources
Community Web Sites
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Communities are
being evaluated
before they even
know they are
being considered.
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Facility Siting Process
Fundamentals and Trends
Increased importance of
project-ready sites
(shovel ready) and
buildings.
Incentives are still a
driving force for many
companies.
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Competitive Site Selection
2. Musts and Wants
provided by the
company
3. Potential
States/Regions/
identified
1. Community Visits
2. Site Evaluation
3. Comparative
Analyses
4. Finalist Communities
Phase 3
1. Company Input
Phase 2
Phase 1
Screening Process
1. Location Evaluation
with company
officials
2. Site Due Diligence
3. Negotiations,
including incentives
4. Selection
4. RFP and Web Data
Retrieval
5. Announcement
5. Community
Questionnaire Review
and Analysis
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Facility Siting Process
Fundamentals and Trends
SITE SELECTION FACTORS AS NOTED BY COMPANIES
Ranking
2010
2009
1. Highway accessibility
2. Labor costs
3. Tax exemptions
4. Occupancy or construction costs
5. State and local incentives
6. Corporate tax rate
7. Availability of skilled labor
8. Energy Availability and costs
9. Availability of buildings
10. Low union profile
11. Available land
12. Proximity to major markets
97.3
91.0
90.9
89.8
89.3
86.3
85.9
82.1
81.0
75.4
73.4
66.4
92.9(2)**
96.7(1)
88.4(3)
86.7(7)
84.9(8)
87(5)
86.9(6)
88.0(4)
75.7(12T)
75.8(11)
75.7(12)
73.3(15)
** (2009 ranking)
Source: Area Development Magazine 2011
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Facility Siting Process
Fundamentals and Trends
QUALITY-OF-PLACE FACTORS
Ranking
2010
2009
1. Low crime rate
84.6
79(1)
2. Healthcare facilities
72.2
68.4(2)
3. Housing costs
68.4
61.5(4)
4. Housing availability
66.4
62.4(3)
5. Ratings of public schools
61.2
61.4(5)
6. Climate
56.3
55.0(6)
7. Colleges and universities in area
53.2
8. Cultural opportunities
48.7
50.7(8)
46(9)
9. Recreational opportunities
48.2
52.7(7)
Source: Area Development Magazine 2011
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Being Prepared as
a Community and
an EDO
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A Holistic Approach to Economic
Development
Product
Improvement
Preparing and
improving your
product
Product
Marketing
Organization
Marketing and
selling your
product globally
Having the internal
infrastructure to
accomplish your
mission
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Being Prepared
Product Improvement
Product Marketing
– Leadership
– Sites
– Infrastructure
– Workforce
– Education
– Training
– Taxes
– Quality Of Place
– Community Assets
– Customer knowledge
– Product knowledge
– Communication
Organization
–
–
–
–
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Vision & Strategic Plan
Org & Financial Design
Staffing / HR
Programs
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What’s All This
Talk About
Regionalism?
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Regional Collaboration
Why?
– Location decisions for new and expanding
companies are based on regions and then
communities.
– Benefits (ROI) of development are realized
regionally.
– Locations are most competitive as a region
through branding and marketing.
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Regional Collaboration
Location Decisions
– Companies don’t care about boundaries. They care
about the labor market area. Information needs are
rarely defined by local political boundaries.
– Need strong regional EDO in place:
• Efficiency in proposal response
• Effectiveness of communication
• Strong regional web site is very valuable
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Regional Collaboration is
Important
BUT…
Economic Development is
always sold on the local
level.
You must not sacrifice
local Economic
Development efforts by
thinking that a regional
effort will supplant a local
group.
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Some Data On Your 10 County Region
People & Income Overview
(By Place of Residence)
Population (2010)
Value
681,728
Industry Overview (2010)
(By Place of Work)
Value
Covered Employment
285,365
$36,205
Growth (%) since 1990
16.3%
Avg. wage per job
Growth (%) since 1970
29.0%
Manufacturing - % all jobs
Land Area (in sq. miles)
3,960.2
Avg. wage per job
22.4%
$47,889
Population Density (2010)
172.1
Transportation & Warehousing – % all jobs
% reporting one race only (2010)
98.0%
Avg. wage per job
% reporting only African American (2010)
6.3%
Healthcare, Social Assist - % all jobs
% reporting Hispanic (of any race) (2010)
5.1%
Avg. wage per job
$40,255
14.3%
$38,202
Households (2010)
258,852
Finance and Insurance - % all jobs
Labor Force (2010)
327,968
Avg. wage per job
Unemployment Rate (2010)
4.3%
3.6%
$51,089
11.1
Per Capita Personal Income (PCPI) (2009)
$31,521
10 Year PCPI Growth (%) adj. for inflation
-5.7%
Poverty Rate (ACS 2005-2009)
11.6%
HS Diploma or More - % of adults 25+ (ACS 200520090)
85.8%
Bachelor’s Degree or More - % of adults 25+ (ACS
2005-2009)
19.9%
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Some Data On Your Region As Defined by the
Government (Fort Wayne-Huntington-Auburn, IN combined)
People & Income Overview
(By Place of Residence)
Value
Population (2010)
578,435
Industry Overview (2010)
(By Place of Work)
Covered Employment
250,136
$37,030
Growth (%) since 1990
17.1%
Avg. wage per job
Growth (%) since 1970
28.0%
Manufacturing - % all jobs
Land Area (in sq. miles)
2,858.7
Avg. wage per job
21.5%
$49,294
Population Density (2010)
202.3
Transportation & Warehousing - % all jobs
% reporting one race only (ACS 2005-2009)
98.1%
Avg. wage per job
% reporting only African American (ACS 2005-2009)
7.1%
Healthcare, Social Assist - % all jobs
% reporting Hispanic (of any race) (ACS 2005-2009)
5.1%
Avg. wage per job
3.9%
$41,361
14.1%
$39,673
Households (ACS 2005-2009)
220,204
Finance and Insurance - % all jobs
Labor Force (2010)
281,023
Avg. wage per job
Unemployment Rate (2010)
Value
3.8%
$52,298
10.9
Per Capita Personal Income (PCPI) (2009)
$32,300
10 Year PCPI Growth (%) adj. for inflation
-4.3%
Poverty Rate (2009)
13.4
HS Diploma or More - % of adults 25+ (ACS 2005-2009)
87.2%
Bachelor’s Degree or More-% of adults 25+ (ACS 2005-2009)
20.8%
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Some Data On Whitley County
People & Income Overview
(By Place of Residence)
Population (2010)
Growth (%) since 1990
Value
32,896
19.0%
Rank in Industry Overview (2010)
U.S.
(By Place of Work)
1348 Covered Employment
1107 Avg wage per job
Households (2009)
13,010
1343 Manufacturing - % all jobs in County
Labor Force (persons) (2010)
17,149
1288 Avg wage per job
Unemployment Rate (2010)
10.5
Per Capita Personal Income (2009)
$31,341
Median Household Income (2009)
$48,451
Poverty Rate (2009)
8.0
H.S. Diploma or More - % of Adults
25+ (ACS 2005-2009)
89.9
Bachelor's Deg. or More - % of
Adults 25+ (ACS 2005-2009)
16.4
964
Transportation & Warehousing - % all jobs in
County
1686 Avg wage per job
733
Health Care, Social Assist. - % all jobs in
County
2953 Avg wage per job
478 Finance and Insurance - % all jobs in County
1,650 Avg wage per job
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Rank in
U.S.
Value
10,746
1333
$34,083
1225
36.9%
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$44,053
1099
0.6%
2663
$46,182
618
D
N/A
D
N/A
1.9%
2173
$37,377
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Summary
The Path to Success!
Site selection is a process of elimination but
no place is utopia.
Competition is fierce with 3,141 counties
and over 18,000 municipalities…and global
competition too!
Success in business attraction/marketing
requires a regional effort.
Companies are “risk averse” in site
selection.
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Summary
What You Need to Remember!
Your web site is your #1 marketing
tool.
The internet has now proven to be
the primary source of site location
data.
“Shovel-ready” sites are imperative.
– Spec buildings are a plus.
Incentives will remain a major
location criteria.
– Have defined incentives for
each County.
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Summary
What You Need to Remember!
Communities need a long term executable
strategy/vision.
Have an internal strategic plan with the EDO that is
built on creating success.
Focus on a few targets and on what you’re good at:
advanced manufacturing, recruitment, tourism,
downtown development???
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Summary
What You Need to Remember!
Build for Tomorrow…Shoot for the Stars and
fully fund your economic development efforts.
Be innovative in everything you do - from
providing efficient government services to the
public, to nurturing and growing new and
small businesses.
Enhance your local quality of place. It’s what
differentiates you!
Attention to detail makes the difference.
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Remember…
Those communities and
regions that stand out
above the crowd get
noticed …and win!