Richland County Economic Development Strategy Review. September 2019
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1 Richland County Economic Development Strategy Review September 2019
2 Primary Challenges/Themes Community & Entrepreneurship 1. Lack of a unified vision, leadership and collaboration 2. Uninspired culture, lack of vibrancy and unfavorable business trends 3. Low interest in entrepreneurship and business growth Economic Development 4. Lead county economic development organization (RCDG) is under-resourced and over-committed 5. Disjointed business retention, expansion and attraction efforts, under-resourced support organizations and underutilized assets Workforce Development 6. Low awareness of existing training, education and career opportunities and support resources 7. Significant skills gap in the workforce 8. Negative perception of the region, manufacturing jobs and its workforce 2
3 Initiative Guiding Principles 1. The RCF needs to be a catalyst for change 2. The RCF does not want to become tied into long term operational support 3. All programs that are developed should be thinking sustainability 4. We should be seeking opportunities to attract outside investment capital from outside the county 5. Translate theoretical plans into tangible outcomes 3
4 Key Considerations Elements that we should consider in designing the path forward (1) LONG TERM VISION: Create greater impact through existing organizations. (2) Need to think VALUE and SUSTAINABILITY. (3) Need to enable a high degree of COLLABORATION. (4) Need to develop a MUTUALLY SUITABLE GOVERNING structure. (5) Need to establish a healthy degree of ACCOUNTABILITY and OVERSIGHT. 4
5 Recommendations Summary Major Investments: 2 Full Time Resources Drive growth of existing businesses in Richland County. This should be done through two key mechanisms: (1) An aggressive Business Retention & Expansion outreach; (2) Conduct surgical interventions with selected scaleups Address critical business challenges related to workforce needs by establishing a business/workforce champion Secondary Investments Entrepreneurship: Facilitate better integration amongst existing organization Business Attraction: Create opportunities for existing EcD entities to drive proactive attraction effort and share resources that can position Richland County more favorably Metrics & Accountability: Create an overall framework to better measure/monitor/drive economic outcomes in the county 5
6 Detailed RCF 5-Year Investment Plan 1. EcD - Retention & Expansion 2. Workforce Development Goals and Objectives Develop a more efficient RE&A regional capability. Individuals & entity will focus on the following areas: Business outreach Opportunity management Develop of a network of high-quality business service providers Improve the efficiency with which regional business workforce challenges are addressed by empowering a dedicated individual to drive workforce opportunities in Richland County. Primary area of focus: Improve worker productivity Fill critical positions Support transition of an aging workforce (expect supporting investment from ODJFS also) 3. Scale-ups Establish a program that allows for detailed engagement with a set of regional companies 4. Entrepreneurship 5. Performance and Accountability Help develop a culture of entrepreneurship for businesses in the Richland County Develop a common platform that serves as an objective dashboard of the economic performance of Richland County. 6. EcD - Attraction Better coordinate regional Business Attraction opportunities Develop a common set of tools, assets and opportunities that allows all entities to perform better in the attraction capability Become more proactive in attracting businesses to the region Outcome Metrics Drive profitability of local companies (increased revenue or decreased cost) Creation of jobs/increased hiring Reduction in critical open positions Improved workforce productivity Increased incumbent worker training Increased number of apprenticeships/internships Increased jobs creation Improved business profitability Increased investment of capital Increased deal flow Increased attendance at regional events Increased number of startups Improvement in the metric trends Utilization of the dashboard by the community and beyond Increased number of new businesses attracted to the region 6
7 1 Economic Development Retention & Expansion (R&E) Key objectives - Adopt County-wide perspective/ mandate - Centralize and coordinate R&E efforts to better leverage limited resources with focus on driving County-wide, regional impact - Key responsibilities: - Sales and business generation (will drive leads for the various regional services providers (e.g., workforce, Magnet) - Relationship manager, i.e., with local non-retail businesses - Project management - Build and sustain a robust network of service providers (e.g., marketing, operations, talent, etc.) and other tools/processes (e.g., EcD asset map) - Product/ service development Target outcomes: - Increase number of jobs created in the region - Increase number of payroll added in the region - Increase fixed asset capital investment made in the region Performance metrics - No. of BR&E calls completed - No. of projects worked - No. of referrals to service providers (e.g., training programs, real estate brokers, growth consultants, financing) Milestone(s) Year 1 Refine R&E job description and fill position Identify comprehensive Economic Development 101 training seminar and roadshow across County (i.e., public officials, EcD community) Articulate County-wide R&E strategy and annual goals Complete and track 100 outreach calls Year 2 Demonstrate general progress against goals Complete and track 200 outreach calls One completed referral project (Magnet or other comparable) Articulate annual goals Business community satisfaction survey Develop sustainability (i.e., funding) plan and secure [50%] of the following year s FTE cost Year 3 Demonstrate general progress against goals Comprehensive assessment of first two years, including EcD community collaboration and effectiveness survey Refine strategic plan and articulate annual goals Secure [75%] to cover of following year s FTE cost Year 4 Demonstrate general progress against goals Articulate annual goals Business community satisfaction survey Secure 100% of following year s FTE cost Year 5 Demonstrate general progress against goals Articulate annual goals 7
8 2 Economic Development Attraction Key objectives - Adopt County-wide/ regional perspective and mandate - Centralize and coordinate business attraction efforts, e.g., develop an opportunity County-wide response playbook, focus marketing on key assets - Better leverage limited and existing resources (e.g., Team NEO) Target outcomes: - Increase number of jobs created in the region - Increase number of payroll added in the region - Increase fixed asset capital investment made in the region Performance metrics - No. of opportunities pursued - No of site visits hosted - Response time - No. of Team NEO-sponsored events attended Milestone(s) Year 1 Better leverage relationship with Team NEO e.g., sponsored site visits, County-specific marketing analysis and materials, website links Articulate County-wide strategic plan and goals Streamline efforts County-wide Year 2 Demonstrate general progress against goals County-wide attraction annual goals Develop and implement County-wide rapid response playbook Develop marketing materials for key assets i.e., GM plant, airport Year 3 Demonstrate general progress against goals County-wide attraction annual goals Year 4 Demonstrate general progress against goals County-wide attraction annual goals Year 5 Demonstrate general progress against goals County-wide attraction annual goals 8
9 3 Workforce Development Overall Effort, Comprised of 3 Sub-areas Key objectives - Create and fill a full-time position focused on workforce development in the manufacturing sector at the intersection of regional economic development and skills - Key responsibilities: - Work closely with [R&E Generalist] and [Chamber] to interface with business community - Driving efforts to support business adoption of higher productivity and higher skilled forms of manufacturing - Service and program development and management identifying and coordinating/developing funding sources, service providers; tracking progress - Key priority areas - Succession planning - Workforce productivity - Filling hard-to-fill positions Target outcomes: - Leveraged funds to support workforce development goals and project sustainability - Partnerships developed with workforce providers - Assemble performance data to track and manage projects Milestone(s) Year 1 Create and fill position. Assume 50% of funding to come from ODJFS Establish a process to integrate with EcD R&E Develop a detailed multi year plan that addresses how workforce programs will get built out in 5 years Launch projects according to the plan s timeline Year 2 Refine the plan Continue project implementation Measure outcomes Seek regional, state, and national grant funds for projects Identify sustainability funding (with community colleges and ODJFS). Year 3 Refine the plan Continue project implementation Measure outcomes Begin implementing sustainability plan Year 4 Refine the plan Continue project implementation Measure outcomes Continue implementing sustainability plan Year 5 Refine the plan Continue project implementation Measure outcomes Fully implement sustainability plan 9
10 4 Scale-up Intervention Catalyzing high growth for small- to medium-sized businesses Key objectives - Help scale-up companies identify and address barriers to growth e.g., sales & marketing, talent search, access to capital, lean - Scale-ups are typically 3+ years old, between $2-$50 million in revenue and have employees. They can be a major contributor to regional growth and, we believe, businesses receive less focus and resource assistance than others in the past - Evergreen fund / pool of money to help minimize a company s risk by fronting part of the cost of external services - Success fee of x multiple of total cost - Meeting milestones triggers payments - Payments return to pot to support more companies and projects Target outcomes: - Increase number of jobs created in the region - Increase number of payroll added in the region - Increase fixed asset capital investment made in the region Performance metrics - Pipeline metrics - Milestones met/ not met - % of total cost recovered Milestone(s) Year 1 Identify scale-up opportunities and pursue diligence on 2-3 months Define the work and opportunity Design fees structure (milestones, payment amount, timing) Sign contract(s) Launch project(s) Year 2 Complete first projects and receive compensation Develop pipeline Launch new projects Year 3 Complete projects and receive compensation Develop pipeline Launch new projects Year 4 Complete projects and receive compensation Develop pipeline Launch new projects Year 5 Complete projects and receive compensation Develop pipeline Launch new projects 10
11 5 Entrepreneurship Infusion Summary description - Empower Chamber to lead entrepreneurship programming in collaboration with current resources i.e., SCORE, SBDC, Braintree - Key focus on educating and building awareness of entrepreneurship and related services across the entire community, young and old - Students - Annual County-wide entrepreneurship competition, engaging schools, companies, entrepreneurs - Launch summer mini-bootcamp for students (e.g., Shaker LaunchHouse Deep Dive) - Integrate entrepreneurship knowledge and skills in the classroom - Community - Streamline and leverage services go to the market as single force market, market, market - Co-develop a robust website with educational materials and referrals - Leverage existing programs Goldman Sachs 10,000 business; leverage regional resources Target outcomes: - No. of new businesses - No. of small establishments - No. of jobs created Performance metrics - Participation rates - Unique website hits Milestone(s) Year 1 Form collaborative with SCORE, SBDC, Braintree Develop strategic plan to increase entrepreneurship awareness and activity Develop and launch one-week mini-boot camp(s) for school-age children (K-12) Develop a one-stop small businesses section on Chamber website 101s, links Year 2 Year 3 Year 4 Year 5 11
12 4 6 Metrics & Accountability Summary description Holistic view of metrics relative to Richland County to track baseline and show progress over time. Data collection and resources available as described below. Community Portal (release CY2015) Hosting of a Jobs and Equity portal to engage the Richland community, track baseline data, and show progress over time. Presented via a web interface, with custom data integration to allow for long term tracking. Data categories include: * Economic Development (e.g., Top Employers, Fast Growth Firms) * Workforce (e.g., Unemployment, Per Capita Income) * Entrepreneurship (e.g., Innovation Index, Patents / 1000 workers) Voice of the Community Survey (release CY2016) Bi-annual recurring stakeholder survey to test the pulse of the Richland community perception of Jobs and Equity. Data collection activities (e.g., survey monkey) and outcome report included Metrics for Progress review (release CY2016) Status update on Inputs, Leading indicators, Measure of progress, and Outputs for project initiatives. Assumes manual data collection activities led by community resources and supported by JumpStart Key activities and considerations - Development of baseline for long term metrics tracking - Design of web site interface and content development - Data collection strategy and refresh plan Milestone(s) Year 1 Data Design Plan and Data Collection Process Website Design and Content Development Custom data widget development for long term effectiveness Year 2 Site refresh, hosting, maintenance, content development Annual data collection activity market survey where necessary Year 3 Site refresh, hosting, maintenance, content development Annual data collection activity market survey where necessary Year 4 Site refresh, hosting, maintenance, content development Annual data collection activity market survey where necessary Year 5 Site refresh, hosting, maintenance, content development Annual data collection activity market survey where necessary 12
13 The Richland County Partnership Opportunity Rationale Long Range For Community Leaders More sustainable structure; removes investment redundancies More effective accountability one point person to solve a problem Ease of oversight; Eliminate multiple management boards For Businesses and Community Members Ease of navigating the system single point of entry For the Organization Create better focus for each team member. Focus = Outcomes Better sharing of information across the various teams (i.e. insights gained from R&E discussions, patterns of incoming community calls, etc.) 13
14 Results Economic Development Retention & Expansion YTD Business Retention & Expansion Metrics Input Variables Number of Unique Calls Follow up Activities Outreach Engagement yes yes yes yes Output Variables Closed Projects Involving Jobs Ohio Closed Local Projects (non Jobs Ohio) New Jobs Committed New Payroll Committed (thousands) $950 $7.66M $1.42M $5.63M Capital Expenditures (millions) $6.3M $61.40 $12.50 $9.44 Jobs Retained (total employees) NA NA Active Projects in the Pipeline 45 NA NA NA Number of Referrals Made NA 14
15 Results Entrepreneurship Infusion Created Entrepreneurial Alliance through Braintree. Resource providers met monthly to discuss like clients and discuss ways improve client access. Funded Created and published Resource guide. A comprehensive guide for start-up companies. Launched Richland Idea Audition. Pitch contest for local entrepreneurs. Purpose to provide small start-up capital for the winners, create an entrepreneurial vibe in the area, create awareness of local resources. Funded Leveraged outside investment through the State of Ohio for minority, women and disadvantaged entrepreneurs. Funded Supported Young Entrepreneurs Academy through the Chamber Foundation. Funded
16 Entrepreneurship Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Two Year Total Two Year Goal Number of Inbound Inquiries Number of Qualified Inquiries Number of Entrepreneurial Network Referrals Number of Entrepreneurial Events Number of Inbound Inquiries - anyone that contacts a service provider about entrepreneurship in Richland County Number of Qualified Inquiries - someone who then follows up by attending Caffeinated Ideas, an open house, or another event that was recommended to them, or schedules a meeting with an appropriate organization like SCORE, Braintree, or SBDC Number of Entrepreneurial Network Referrals After someone in the EA works withan entrepreneur, they are forwarded to a resource that could possibly be outside the county, like Innovation Fund, BioOhio, or OSU.
17 Results Metrics & Accountability Richland Vital Signs - the site was shut down in 2018 due to no traffic 17
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