ED 101: The Fundamentals of Economic Development. Millie Callaway, Program Manager Economic Development -Training and Development October 2015
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1 ED 101: The Fundamentals of Economic Development Millie Callaway, Program Manager Economic Development -Training and Development October 2015
2 Agenda What is economic development? Economic development trends How to play the game ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 2
3 What is Economic Development? Economic Development is a dedicated effort to create/retain jobs, grow the tax base and increase the standard of living for a community or region. ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 3
4 Economic Development Activities Can Include: Manufacturing Distribution Tourism Personal and professional services Agriculture Health care Retail Government ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 4
5 Successful Economic Development More jobs & more job options Enough jobs for citizens Adds to the tax base Tax base is sufficient to provide improved public services Stimulates other commercial, industrial and residential development Provides opportunities for young people to stay in the community Families have more income to spend Per capita income is increasing near or above the state and national average Positive news Standard of living is rising More traffic, newcomers, more public services required, more changes! Development aligned with local vision ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 5
6 Always Consider Risk Money Speed ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 6
7 Trends in Economic Development Non-traditional economies Interdependence and mutual vulnerability New technology: capital investment, Financial and credit markets Energy costs/supplies Environmental issues Workforce jobs, skills ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 7
8 Trends in Economic Development Elections Foreign investment outweighs domestic investment Competitiveness continues to increase Incentives Access and logistics Large loads = power reliability Local sustainability ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 8
9 Pop Quiz When corporate executives rank site selection factors, what are the top 10? ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 9
10 Pop Quiz Area Development 2014 Corporate Executive Survey (Combined Rating) Ranking Site Selection Factors 1 Highway accessibility 2 Occupancy or construction costs 3 Available land 4 Available buildings 5 Availability of skilled labor 6 Labor costs 7 Right-to-work state 8 Proximity to major markets 9 Energy availability and costs 10 Corporate tax rate ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 10
11 Pop Quiz When site selection consultants are looking at quality of life factors, what are the top 9? ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 11
12 Pop Quiz Area Development 2014 Site Consultants Survey Ranking Quality of Life Factors 1 Low crime rate 2 Ratings of public schools 3 Healthcare facilities 4 Housing availability 4T Housing costs 6 Colleges and universities in area 7 Recreational opportunities 8 Cultural opportunities 9 Climate ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 12
13 What is Business Recruitment? Movement of new companies into the community; expansion of current companies Most expensive/most rewarding Extremely competitive Companies can consider locations around the world they would never have considered before Typically led by site selection consultants Multiplier effect ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 13
14 Playing the Site Selection Game Buildings in demand Compressed timeframe Comprehensive Eliminate Risks Time Environmental Political Cost Quantifiable data ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 14
15 Playing to Win Communities must differentiate to succeed: Shovel-ready sites Available, suitable buildings Incentives early on Business case Accurate and timely information Committed leadership/partnerships Consensus on direction, goals, targets Workforce Infrastructure Website ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 15
16 Evolution of a Business Recruitment Project Company has a need Information request (RFI/RFP) Your response The community visit Negotiations Announcement Groundbreaking Service after the sale ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 16
17 Top Reasons Why Communities Lose Prospects Breach of confidentiality No sense of urgency No follow-up Too many people or wrong people at the meeting Can t work together Poor track record Verbal blunders Lack of diversity Vision and development do not match ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 17
18 Who is on the Economic Development Team? Elected Officials City Employees Economic Developer Local Power Companies & Other Utilities Schools Colleges Existing Businesses Media Financial Institutions State & Regional Organizations Civic Groups Engineers All Citizens ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 18
19 What Can the Economic Development Team Do? Be knowledgeable about the economic development process Be responsive to companies needs regarding city and county services Appoint knowledgeable and experienced people to economic development boards, commissions and task forces Provide accurate information in timely manner for proposals, site visits, etc. ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 19
20 What Can the Economic Development Team Do? Provide funding and appropriate oversight for economic development efforts Identify what incentives the local government is willing to provide Be proactive and cultivate a positive business climate Support local businesses ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 20
21 What Can the Economic Development Team Do? Support regional economic development efforts Plan for and invest in the development of land, buildings and infrastructure Participate on local sales team Represent the community, not just one area Expand relationship networks ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 21
22 Winning Economic Development Organization Committed leadership Consensus on vision and goals Realistic plan, regularly revised Partnerships (internal and external) Monitor, evaluate, celebrate ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 22
23 Questions? ED 101: THE FUNDAMENTALS OF ECONOMIC DEVELOPMENT 23
24 Millie Callaway Program Manager, Economic Development Training and thevalleyworks.org
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