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, CCEPresident and FounderGarner 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.

www.garnereconomics.com

Who We Are

Garner Economics provides creative, strategic and executable value to companies, communities and organizations globally.

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Who We AreWe 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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www.garnereconomics.com5

A Sample of Our Experience with Primus


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 theEconomic 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. FriedmanNew York TimesFebruary 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?


Top ranking destination countries by estimated jobs – 2009 (08)

Source: IBM Global Business Services, 2010


Top ranking origin countries by estimated jobs - 2009 (08)



Top ranking destination states/provinces in North America by estimated jobs - 2009 (08)

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TheSite Selection Process

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Facility Siting Process FundamentalsPROFIT DRIVENInvestment for purpose of return. Business is in business to make a profit.

DEADLINE DRIVEN

Both the site selection process and the project.

COMPETITIVEMultiple location options. We are looking for reasons to exclude you after the initial cut.

COMPREHENSIVEComplex 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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Communities are being evaluated before they even know they are being considered.

Local Newspapers

Community Web Sites

Private Data Sources

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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 Screening Process

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Facility Siting Process Fundamentals and TrendsSITE SELECTION FACTORS AS NOTED BY COMPANIES

Ranking 2010 2009

1. Highway accessibility 97.3 92.9(2)** 2. Labor costs 91.0 96.7(1) 3. Tax exemptions 90.9 88.4(3) 4. Occupancy or construction costs 89.8 86.7(7) 5. State and local incentives 89.3 84.9(8) 6. Corporate tax rate 86.3 87(5) 7. Availability of skilled labor 85.9 86.9(6) 8. Energy Availability and costs 82.1 88.0(4) 9. Availability of buildings 81.0 75.7(12T)10. Low union profile 75.4 75.8(11)11. Available land 73.4 75.7(12)12. Proximity to major markets 66.4 73.3(15)

Source: Area Development Magazine 2011** (2009 ranking)

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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 50.7(8)

8. Cultural opportunities 48.7 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

Marketing and selling your

product globally

Organization

Having the internal infrastructure to accomplish your

mission

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Being Prepared

Product Improvement– Leadership– Sites– Infrastructure– Workforce– Education– Training– Taxes– Quality Of Place– Community Assets

Product Marketing– Customer knowledge– Product knowledge– Communication

Organization– 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

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People & Income Overview (By Place of Residence) Value Industry Overview (2010)

(By Place of Work) Value

Population (2010) 681,728 Covered Employment 285,365

Growth (%) since 1990 16.3% Avg. wage per job $36,205

Growth (%) since 1970 29.0% Manufacturing - % all jobs 22.4%

Land Area (in sq. miles) 3,960.2 Avg. wage per job $47,889

Population Density (2010) 172.1 Transportation & Warehousing – % all jobs 4.3%

% reporting one race only (2010) 98.0% Avg. wage per job $40,255

% reporting only African American (2010) 6.3% Healthcare, Social Assist - % all jobs 14.3%

% reporting Hispanic (of any race) (2010) 5.1% Avg. wage per job $38,202

Households (2010) 258,852 Finance and Insurance - % all jobs 3.6%

Labor Force (2010) 327,968 Avg. wage per job $51,089

Unemployment Rate (2010) 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 2005-20090) 85.8%

Bachelor’s Degree or More - % of adults 25+ (ACS 2005-2009) 19.9%


Some Data On Your Region As Defined by the Government (Fort Wayne-Huntington-Auburn, IN combined)

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People & Income Overview(By Place of Residence)

ValueIndustry Overview (2010)(By Place of Work)

Value

Population (2010) 578,435 Covered Employment 250,136

Growth (%) since 1990 17.1% Avg. wage per job $37,030

Growth (%) since 1970 28.0% Manufacturing - % all jobs 21.5%

Land Area (in sq. miles) 2,858.7 Avg. wage per job $49,294

Population Density (2010) 202.3 Transportation & Warehousing - % all jobs 3.9%

% reporting one race only (ACS 2005-2009) 98.1% Avg. wage per job $41,361

% reporting only African American (ACS 2005-2009) 7.1% Healthcare, Social Assist - % all jobs 14.1%

% reporting Hispanic (of any race) (ACS 2005-2009) 5.1% Avg. wage per job $39,673

Households (ACS 2005-2009) 220,204 Finance and Insurance - % all jobs 3.8%

Labor Force (2010) 281,023 Avg. wage per job $52,298

Unemployment Rate (2010) 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%


Some Data On Whitley County

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People & Income Overview(By Place of Residence)

ValueRank in

U.S.Industry Overview (2010)(By Place of Work)

ValueRank in

U.S.

Population (2010) 32,896 1348 Covered Employment 10,746 1333

Growth (%) since 1990 19.0% 1107 Avg wage per job $34,083 1225

Households (2009) 13,010 1343 Manufacturing - % all jobs in County 36.9% 52

Labor Force (persons) (2010) 17,149 1288 Avg wage per job $44,053 1099

Unemployment Rate (2010) 10.5 964Transportation & Warehousing - % all jobs in County

0.6% 2663

Per Capita Personal Income (2009) $31,341 1686 Avg wage per job $46,182 618

Median Household Income (2009) $48,451 733Health Care, Social Assist. - % all jobs in County

D N/A

Poverty Rate (2009) 8.0 2953 Avg wage per job D N/A

H.S. Diploma or More - % of Adults 25+ (ACS 2005-2009)

89.9 478 Finance and Insurance - % all jobs in County 1.9% 2173

Bachelor's Deg. or More - % of Adults 25+ (ACS 2005-2009)

16.4 1,650 Avg wage per job $37,377 1669

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_p04.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_f3.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_pog4.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_s14.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_th.html


http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_l1.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_s19.html

http://statsamerica.org/profiles/uscp_skin.asp?main_link=http://www.stats.indiana.edu/uspr/a/usprofiles/ranks/c_l10.html



SummaryThe 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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SummaryWhat 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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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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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!

Documents

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,