Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Coweta County Development Authority&
Georgia Power CompanyCommunity and Economic Development
January 28, 2011
HERRON CONSULTINGHERRON CONSULTING
Community AssessmentCommunity Assessment
AgendaAgenda
• About HERRON CONSULTING
• Outline Of the Project
• Findings and Recommendations
• Questions
HERRON CONSULTING HERRON CONSULTING
• Senior Professionals The Principals Have 20+years of Experience Each
• Economic Development Strategy and Planning Community Assets and Competitiveness Site Assessments / Site Certifications Real Estate Analysis and Redevelopment Potential
• Corporate Site Selection Feasibility Studies Site Selection Implementation Services and Negotiation
Certifications:
- Women’s Business Enterprise National Council
- City of Atlanta
Representative Community Economic Development Projects
AEP Public Service of OKApple Valley MNBoston MABowling Green/Central KYCampbellsville KYChicago ILClinton IACoos County ORDallas TXDenver CODuke Energy/CinergyEmpire State Development NYErie PAFort Wayne INFrisco TXFox Cities WIGlenview ILGreensburg-Decatur County INGeorgia Power Co.
Hammond INHartford CNHouston TX Jacksonville FLKenosha WILafayette/W. Lafayette INLake Bluff ILLake Forest ILLehigh Valley PALas Vegas NV Los Alamos NMLos Angeles CAMartinsville-Henry County VAMesa AZMilwaukee WINavy Pier, Chicago New Orleans LANortheast OK AutomotiveCoalition
Pittsburgh PAPort of Lake Charles LAPort of South LouisianaQuad Cities IL-IA SAIL (Southeast Alliance of IL)Southern Illinois DeltaEmpowerment Zone
Springfield ILWest Cook County ILCeco Industries, Durham NCDisney Development, OrlandoFurman Co, Greenville SCHoward Hughes, Las VegasTaco Bell-FL and GAFederal Peer Review GrantPanels, Chair
•DHHS•HUD
Representative Site Selection Projects
AlcoaAmsted Rail GroupAESAkzo SaltAREVAAtlantic Electric BNSF RailwayBMWBoeingChanelCiba-GeigyColgateCorningDaimlerChryslerElmer’s ProductsEmbrexEcce PanisEast Kentucky PowerEl Paso Natural GasFanny Farmer Co.Florida Power & LightGriffin Wheel
Hoffman LaRocheHunt WessonJ M Huber Chemical KrogerLong Island Lighting Co.Louisiana Offshore Oil PortLucentMaytag3MMinerva PropertiesMetal LeveMobil Research & Dev.Moeller Marine ProductsNational Starch & ChemicalNevada PowerObayashiOkonite Wire & CableViking PressVolvoWilliams InternationalLord & TaylorTractor Supply Co.
AIGAmerican ExpressAT&TBlue Cross-Blue ShieldPitney BowesPrudentialThe New EnglandU S Trust Co. of New YorkAir Products & ChemicalsAlcoholics AnonymousAmerican Cancer SocietyAmerican International (AIG)Associated PressAT&T CapitalCAREDeloitteEntergyISONational Basketball Assoc.Presbyterian Pension Board
Industrial Office - Headquarters
Examples: Corporate Siting ObjectivesExamples: Corporate Siting Objectives
Corporate Site Selection ProgramObjectives
ImprovedGlobal/MarketPosition
Profit-Driven
Culture
Time to Market Competitive
Cost Advantage
EfficientSupply Chain
Effective Asset
Management
Some observations based on our site selection work with companies around the nation:
Site Selection Decision Makers Avoid Risk
• They seek a relationship with a partner community that can demonstrate: Understanding of their concerns
Willingness to share risk
Ability to navigate the political/regulatory landscape
Continuous improvement in the business environment and commercial infrastructure
• These challenges create opportunity for confident and forward-looking communities
It’s All About The CompetitionIt’s All About The Competition
Industry Week 2009
Planned supplier locations:
Coweta CountyCoweta County
Community AssessmentCommunity Assessment
Project Outline
• Study Timeline – 30 days • Purpose
Provide Coweta County Development Authority (the Authority) and Georgia Power Company Community and Economic Development (GPC CED) with information and recommendations useful for developing:
Strategies related to retaining and growing the industrial base
A targeted industry recruitment strategy
Partnerships between the Authority, the Chamber and other key stakeholder groups
A business plan for the Authority
Project Outline
• Data collection and confidential interviews
• Analysis
• Findings and Recommendations Economic Conditions and Trends
SWOT Analysis
Target Industries
Organizational Assessment
Findings and Findings and
RecommendationsRecommendations
PART 1:Economic Conditions and Trends
• Provides foundation for understanding demographic/economic trends; assessing Coweta County’s SWOT; and identifying target industries
• Comparison areas: Coweta County
Coweta Area (8-county Labor Area, per GDOL)
Atlanta MSA (20-county MSA in 2000 grew to 28-county MSA in 2010, per US Census)
Georgia
US (on some key factors)
Coweta Area
Metropolitan Area (MSA)
20 miles
Coweta County’s population experienced significant population gains between 2000-2009Population growth projected to continue
Population
Area 2000 2010% Change2000-2010
2015 Projected
% Change2010-2015
Coweta 89,215 129,842 45% 147,717 14%
Coweta Area 1,234,494 1,570,790 27% 1,730,972 10%
Atlanta MSA 4,247, 981 5,611,180 32% 6,180,206 10%
Georgia 8,186,453 10,014,045 22% 10,762,778 7%
US 281,421,906 308,745,538 10% 321,085,000 14%
Population year 2000 and 2010, US Bureau of the Census Population years 2010 and 2015, ESRI Market ProfilesUS population 2015, US Bureau of the Census (assumes constant net internal migration)
Population Trends
Percentage of Coweta County residents that are of working-age is less than the regional and state averages
Percentage <18 years exceeds the regional and state averages
Age
Source: Population year 2000, US Bureau of the Census Population years 2010 and 2015, ESRI Market Profiles
10%65%25%Georgia
9%65%26%Atlanta MSA
10%66%24%Coweta Area
9%63%28%Coweta
65+ years18-64 years< 18 yearsArea
Age Distribution 2010
87% of Coweta County residents 25 years and over are high school graduates, comparable to the regional averages
24% have a bachelor’s degree or higher, which is less that the region
Education
*25 years and over
Source: ESRI Forecast
27%83%Georgia
34%87%Atlanta MSA
40%87%Coweta Area
24%87%Coweta
Bachelor’s degree
or higher
High School graduateor higher
Area
High School Graduates 2010*
Good measure of economic growth and vitality
Coweta County’s median household income is higher than Coweta Area and Georgia
Household Income
AreaMedian
Household Income
Coweta $66,939
Coweta Area $63,093
Atlanta MSA $68,100
Georgia $56,184
Source: ESRI Forecast
Median Household Income 2010
Global, domestic and local economies were impacted by economic decline for past few years. US experienced a recession.
Coweta County – Unemployment rate less than Coweta Area, MSA, Georgia, and US
Labor Force 2010
Area Labor Force Employed Unemployed Unemployment Rate
Coweta 58,192 53,145 5,047 8.7%
Coweta Area 706,778 636,635 70,243 9.9%
Atlanta MSA 2,639,158 2,384,284 254,874 9.7%
Georgia 4,655,643 4,206,896 48,747 9.6%
US 153,652,000 139,749,000 14,140,000 9.0%
Labor Force and Employment 2010
Source: Georgia Department of Labor
Coweta County: Consistently lower unemployment rates in comparison with the region and state
Unemployment Rates
Unemployment Rates
Source: Georgia Department of Labor
Area 2000 2005 2008 2009 2010
Coweta 3.2% 4.8% 5.7% 9.5% 8.7%
Coweta Area 3.4% 5.6% 6.5% 10.0% 9.9%
Atlanta MSA 3.1% 5.2% 6.2% 9.6% 9.7%
Georgia 3.5% 5.2% 6.2% 9.6% 9.6%
US 4.0% 5.1% 5.8% 9.3% 9.0%
Primary measure of economic vitality is job creation
Coweta County: Positive gains, even with economic decline
Job Growth 2000-2009
Jobs 2000 - 2009
Source: Georgia Statistics System, University of Georgia
Area 2000 2005 2009% change 2000-2005
% change 2005-2009
Coweta 27,006 30,073 30,267 11.4% 0.6%
Coweta Area 917,135 906,461 861,463 -1.2% -5.0%
Atlanta MSA 2,134,648 2,185,953 2,114,935 2.4% -3.2%
Georgia 3,913,547 3,933,307 3,799,790 0.5% -4.0%
While Coweta County jobs have increased, impacts of recession are seen in several sectors. The decline in manufacturing reflects a national trend.
Local Jobs By Industry
Sector Jobs2000
Jobs 2009 Change
% Change 2000 - 2009
Other Services 417 675 258 61.9
Leisure and Hospitality 2,788 4,034 1,246 44.7
Education & Health Services 4,959 6,611 1,652 33.3
Financial Activities 751 970 219 29.2
Trade, Transport, Utilities 6,553 7,913 1,360 20.8
Information 469 535 66 14.1
Construction 1,379 1,476 97 7.0
Professional BusinessServices 2,778 2,088 -690 -24.8
Manufacturing 5,257 3,925 -1,332 -25.3
Nat. Resources/ Mining 150 99 -51 -34.0
Public Administration 1,204 282 -922 -76.6
Total 26,705 28,608 1,903 7.1
Georgia Statistics System, University of Georgia (www.georgiastats.uga.edu).For descriptions of sectors see NAICS Reference File (www.census.gov/eos/www/naics) and the US Bureau of Labor Statistics Census of Employment and Wages (www.bls.gov/cew).
PART 2:Economic Development SWOT Analysis
• Companies can choose from an increasingly large number of locations in the US and abroad for their expansions / new investment
• Competition from cities, counties, states and countries is intense
• SWOT = Strengths, Weaknesses, Opportunities, Threats We assess Coweta County from the eyes of a site selection decision-
maker
We rate the factors that will impact Coweta County’s economic development success
We offer recommendations to consider to take advantage of strengths and opportunities, and mitigate identified weaknesses
SWOT Analysis - Strengths
SWOT Analysis Summary
•Proximity to Atlanta•Highway Transportation•Airports•Railroads•Economic Base•Land•Electric Power•Natural Gas•Water•Wastewater
•Workforce•Wage Rates•K-12 Education•Colleges, University•Coweta Development Authority•Business/ Economic Dev. Climate•Local Taxes•Collaboration With State•Health Care•Quality of Life
SWOT Analysis - Weaknesses
SWOT Analysis Summary
• Business Fees
• Economic Development Incentives
• Environmental (Air Quality Nonattainment)
• Perception “Southside”
• Services and Amenities
• Limited Sites
• Work Ethic
• Public Aware of Education As Economic Development Asset
SWOT Analysis - Opportunities
SWOT Analysis Summary
•Newnan-Coweta Airport•Hospitals (Marketing)
•Land•Target Industries
SWOT Analysis - Threats
SWOT Analysis Summary
•Limited Marketing•Increasing Competition•Global Vision Needed
•Few ED Tools•Window of Opportunity
•Decline In Tax Revenue(real estate values)
SWOT Analysis - Recommendations
SWOT Analysis Summary
•Target Industry Strategy•Marketing Plan•Value Proposition•Enhanced Incentives
•Labor Force Soft Skills•Newnan-Coweta Airport•Public Awareness
PART 3:Target Industry Analysis
• What is target industry analysis? A strategic tool for identifying specific “target” industries to recruit and
retain, to strengthen a region’s economy
A strategic elimination process – eliminates industries not meeting the criteria for a local marketing effort/do not match the locational assets of the community
Integral component of a successful cost-effective economic development marketing program
Target Industry Analysis
• Begins with an understanding of the area’s competitive strengths
• Extensive data analysis, supported by: Confidential interviews
Review of previous documents/reports
Our familiarity with the region and state
Our combined location analysis and economic development expertise
Target Industry Analysis - Objectives
• Recommend industrial sectors and specific industries that capture Coweta County desires, and reflect best practices More technology-based, knowledge industries
New economy, growing, clean industries
Diversification, not only supply chain / distribution
High value-added, high wage jobs
Bring wealth into the community
Target Industry Analysis - Criteria
• Location Factors How the locational requirements of industries match up with Coweta
County’s economic development strengths and competitive advantages
• Concentration Presence / relative representation of the industry (based on
employment), calculated as Location Quotients
• Growth Industry’s employment growth trend in the US and the State
Target Industry Analysis - Criteria
• Diversification and New Economy Reflect a mix of diversified industries, with reliance on technology
• Wages and Skills Industries should create good-paying jobs for local residents
• Export Oriented Industries should export products and services to markets outside
Coweta County and bring new wealth and income into the community
Target Industry Recommendations
Cluster Sectors and Industries NAICS Code
Advanced Manufacturing •Plastics products manuf.•Agriculture, construction & miningmachinery manuf.
•Industrial machinery manuf.
32613331
3332
Automotive and Vehicle Parts Manufacturing
•Motor vehicle parts manuf. 3363
Health Care Services •Medical laboratories•Diagnostic imaging centers
621511621512
Warehouse and Distribution •Warehousing and storage•Durable goods merchant wholesalers•Non-durable goods merchant wholes.•Other industries not classified (Kmart, etc.)
493423424
Data Centers and Management &Technical Consulting Services
•Data processing, hosting & related services•Management, scientific & technicalconsulting services
51825416
Example - Target Industry Wages and EmploymentAdvanced Manufacturing Wages and Employment In Georgia
Plastics Products Manufacturing (3261) – Annual Wage
Plastics Products Manufacturing (3261) – Employment
Agriculture, Construction & Mining Machinery (3331) – Annual Wage
Agriculture, Construction & Mining Machinery (3331) – Employment
PART 4:Organizational Assessment
• Coweta County Development Authority – Responsible for economic development in Coweta County (1966) Business attraction and retention
Internal expansion and new business start-ups
5 member volunteer Board, appointed by County Commission
7 member volunteer Board, Development Authority of Coweta County, established by legislation in 1973
• 3 major programs Marketing
Existing Industry
Recruitment and Expansion
Organizational Assessment
• Economic development stakeholders and partners Coweta County government Municipal governments in Coweta County Georgia Department of Economic Development and other departments
and agencies that are part of state government Newnan-Coweta Chamber of Commerce Economic Prosperity Council Georgia Power, Atlanta Gas Light, and other utilities Newnan-Coweta Airport Authority Central Educational Center West Georgia Technical College University of West Georgia Georgia Tech Newnan-Peachtree Employer’s Committee Shenandoah Property Owner’s Association Business community, hospitals, and other employers Coweta County Convention and Visitor’s Bureau
Organizational Assessment
• Economic development marketing budget Should be based on priority goals, strategies, actions in a marketing plan
Budget will need to be increased if Development Authority is to implement more full-fledged and competitive marketing program
Recommendation: Economic development marketing plan with stipulated budget is necessary
• Staff Economic development marketing is personal and involves establishing and
maintaining relationships
Additional demands and opportunities will dictate the need, type and timing to add additional qualified, experienced, professional staff
Existing staff, Greg Wright and Brenda Washington, work well together and present a good team
Organizational Assessment
• Economic development climate Interviewees believe this is much better than in the past
o Result of improved relationships between Development Authority and Chamber, among others
More collaboration and trust
Existing relationships growing stronger; New ones being formed
Development Authority: earned leadership role in economic development
o Current leadership credited for improved and healthier climate
Other local organizations understand their respective roles in economic development and implementing these
Overall Assessment
• Local economy is relatively healthy
• Governance has low tolerance for risk, but performs well
• Many strengths to draw upon
• Several suitable target industries to be pursued
• Through implementation of the recommendations in this report, the Development Authority and economic development partners will likely produce better results in 2011 and beyond.
Questions and Answers Questions and Answers
Joan HerronPresident
HERRON [email protected]
Robert PriceDirector
HERRON [email protected]
Atlanta, Georgia404.815.7613