Regional Economic Development Report Q3 2014
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- Barrie Gardner
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1 Regional Economic Development Report Q Collaborative economic development efforts across Northeast Ohio resulted in significant gains in jobs, payroll and capital investment in the third quarter of This report provides a snapshot of business attraction, expansion and retention activity in Northeast Ohio as reported by JobsOhio, Team NEO and economic development organizations in 18 counties across Northeast Ohio. NETWORK REGIONAL PARTNER Ashland Area Council for Economic Development Columbiana County Port Authority Erie County Economic Development Corporation Geauga Growth Partnership, Inc Greater Akron Chamber Greater Cleveland Partnership Growth Partnership for Ashtabula Huron County Development Council Lake County Ohio Port & Economic Development Authority Medina County Economic Development Corporation Portage Development Board Richland Community Development Group Stark Development Board, Inc Team Lorain County Tuscarawas Community Improvement Corporation Youngstown/Warren Regional Chamber Wayne Economic Development Council
2 Total Regional Economic Impact Q July-September TOTAL ATTRACTION, EXPANSION AND RETENTION PROJECTS: Q3: 16 YTD: 63 TOTAL PROGRAM IMPACT Q3 TOTAL PROGRAM IMPACT YTD TOTAL : Q3: 3,521 YTD: 14,002 TOTAL PAYROLL: Q3: $260M YTD: $875M TOTAL CAPITAL INVESTMENT Q3: $289M YTD: $1.2B The region s economic development partners continued to support growth for Northeast Ohio s economy in the third quarter of Year to date, 63 attraction and expansion projects contributed to economic development across the region, representing more than 14,000 jobs, $875M in payroll and $1.2B in capital investment. 2,620 RETAINED $222M 901 NEW $38M New Jobs Retained Jobs* 10,661 RETAINED $716M *Jobs stabilized by investments in company growth 3,341 NEW $158M Notable Business Attraction Wins* Q3 COMPANY INDUSTRY COUNTY CREATED PAYROLL CAPITAL INVESTMENT Smithers RAPRA BioHealth Summit 10 $940,000 $1,157,250 Matalco (U.S.), Inc. Trumbull 60 $4,000,000 $85,700,000 Core-Mark Logistics and Distribution Cuyahoga 150 $6,000,000 $14,790,300 *These companies were selected from the full list of wins. CASE STUDY Core-Mark 150 new jobs $6M payroll Logistics and Distribution Village of Glenwillow CORE-MARK Core-Mark distributes and markets consumer packaged goods to the convenience retail industry. It provides sales and marketing, distribution and logistics services to customers across the United States and Canada. JobsOhio, Team NEO and the Greater Cleveland Partnership collaborated to develop a comprehensive business case to convince the company that Northeast Ohio was the best location for its distribution center. Workforce, business environment, access to markets, lease arrangements and competitive incentives were key decision drivers. This was a time-sensitive and highly competitive project with Michigan, Indiana and Pennsylvania in the consideration set. The team was able to convince Core-Mark to open its distribution center at a recently vacated facility in Glenwillow. The $14 million capital expansion will create 150 jobs with a payroll of $6 million.
3 Project Pipeline and Sources PIPELINE: ACTIVE PROJECTS AS OF SEPTEMBER NEW PROJECTS Q3 DOMESTIC/INTERNATIONAL PROJECTS AS OF SEPTEMBER BUSINESS ATTRACTION 101 EXISTING INDUSTRY INTERNATIONAL 31% 49% 51% 15 DOMESTIC 10 69% 5 0 BUSINESS ATTRACTION EXISTING INDUSTRY Based on location of parent company ACTIVE PROJECTS BY STAGE PROJECT LEAD SOURCES 13, LEADS Lead: Team engages with company that has a defined growth opportunity Company Inquiry Referral 4,754 6,177 3, NEGOTIATIONS 20 OFFERS 16 APPLICATIONS 27,821 TOTAL Negotiation: Team understands barriers to growth and proposes solutions Offer: Company receives commitment letter outlining the assistance details Application: Company begins the formal process to grow in Northeast Ohio Consultant Business Expansion/ Retention Contact Business Attraction Outreach Trade Show Other TOP PROJECT CLUSTERS Business Attraction Activity Aerospace & Aviation Automotive BioHealth Energy Food Sciences & Agriculture Information Services & Software Polymers & Chemicals Other Business Attraction Existing Industry 40 New project activity was solid in the third quarter, nearly matching the strong activity in Q2. manufacturing, specifically related to automotive, had the most inquiries. Northeast Ohio continues to earn national recognition for its pronounced advanced manufacturing cluster and workforce. Opportunities in the biohealth and polymer and chemicals industries also showed significant vitality. Many of the projects that surfaced appear to tie back to some national rationalization of resources by the companies involved. The decision to host the Republican National Convention in Cleveland and the return of LeBron James to the Cavaliers are stimulating additional coverage and conversations about the region s rebound.
4 Business Attraction Development Activities YTD OUTBOUND OUTBOUND MARKET VISITS HANNOVER GUANGZHOU 25 M AR KET VISITS In the first three quarters of 2014, Northeast Ohio economic development organizations conducted outreach missions to trade shows and markets in 25 cities in the US and around the world. HONG KONG Q3 OUTBOUND VISIT DETAILS Detroit, MI: German American Chamber of Commerce ANAHEIM DENVER OMAHA DETROIT CHICAGO ALIQUIPPA PHILADELPHIA COLUMBUS PITTSBURGH PARKERSBURG WASHINGTON, D.C. PINEHURST ATLANTA Chicago, IL: International Technology Show Québec City: Industrial Asset Management Council Fall Forum Omaha, NE: The Mid-America Economic Development Council Board Meeting Amsterdam, Netherlands and Linz, Austria: Cleveland Orchestra FAM Tour Parkersburg, WV: Ohio Valley Polymer Summit Houston, TX: Platts NGLs and Petrochemicals DALLAS SAVANNAH WATERCOLOR Savannah, GA: Meeting with Mitsubishi Hitachi Power Systems Americas, Inc. INBOUND HOUSTON TAMPA 85 TORONTO M AR KET VISITS INBOUND SITE VISITS In the first three quarters of 2014, Northeast Ohio economic development organizations reported hosting 85 companies and international delegations that visited the region to learn more about Northeast Ohio and/or conduct site selection reviews. QUÉBEC CITY AMSTERDAM LINZ Marketing and Communications Q3 HIGHLIGHTS OF MARKETING ACTIVITIES CONDUCTED BY TEAM NEO ON BEHALF OF THE REGION: New ClevelandPlusBusiness.com: The website was completely revamped to better sell Northeast Ohio as a prime location for business expansion. The new site, which launched in July, offers enhanced navigation and functionality, a better mobile and tablet experience, data-rich, interactive content and enhanced search engine optimization. NGL (Natural Gas Liquids) Gold Rush event: In conjunction with the Black Gold Ohio Summit, JobsOhio, Team NEO and the Appalachian Partnership for Economic Growth held an event for Midstream and Downstream energy companies to educate them about opportunities in the Ohio Utica Shale play; there were approximately 30 attendees. German Networking Reception: In August, Team NEO hosted a networking event for eight German-owned Northeast Ohio companies at the Cleveland Museum of Art to foster stronger relationships with the German business community. Two new projects were generated as a result. European Business Development Mission: In September, Team NEO capitalized on the Cleveland Orchestra s performances in Europe by hosting pre- and post-concert networking receptions with companies from Austria, Slovenia, The Netherlands and Germany. More than 19 companies attended the receptions and concerts. Team NEO also made six headquarter visits. As a result of the mission, two companies will visit Northeast Ohio to evaluate sites in October and eight new leads and projects have been identified. Business Attraction Campaign: A new fact sheet on Northeast Ohio s headquarters and professional services was created. This single sheet is used as a stand-alone marketing tool and in conjunction with the main business attraction brochure.
5 Notable Existing Industry Growth * Q3 COMPANY INDUSTRY COUNTY PAYROLL CAPITAL INVESTMENT Star of the West Milling Co Custom Poly Bag, Inc. Trans-Foam, Inc. SGS Tool Company TruBridge, Inc. Fosbel, Inc School Specialty, Inc. Food Sciences and Agriculture Financial Services Logistics and Distribution Huron 18 $943,000 $46,460,275 Stark 70 $2,601,873 $4,400,000 Summit 27 $874,760 $316,306 Summit 91 $3,974,670 $8,000,000 Stark 306 $8,344,599 $575,000 Cuyahoga 64 $4,134,816 $150,000 Richland 515 $13,279,605 $5,869,295 *These companies were selected from the full list of companies that are expanding within the region. CASE STUDY TruBridge, Inc. 306 total jobs $8M total payroll Financial Services North Canton TRUBRIDGE TruBridge, Inc. specializes in Medicare Enrollment. They provide health care education and plan choices through state of the art technology and well-educated enrollment specialists. Formed in 2008, the company has grown from an early stage venture to an established name in the insurance market. To increase its market share, the company needed to expand its current operations. Concerned with workforce availability in North Canton, the company considered expanding in a more densely populated location out-of-state. To alleviate the company s workforce concerns, the Stark Development Board connected the company to talent recruitment and training support through Ohio Means Jobs. In addition, JobsOhio, Team NEO and the Stark County Development Board were able to help secure a job creation tax credit to support the hiring of 100 new agents representing $2.5 million in new payroll.
6 Significant National Media Coverage Q3 The Regional Marketing Alliance conducts outreach to influential national media outside the region, resulting in the following coverage: JULY AUGUST SEPTEMBER Bloomberg Businessweek Forbes (blog) ICIS.com NBC News: Meet the Press The Wall Street Journal Forbes (blog) New York Times Forbes (blog) Lake Ashtabula CLEVELAND LORAIN Cuyahoga Geauga Erie Trumbull Lorain Portage Huron Summit Medina AKRON YOUNGSTOWN Mahoning Ashland Richland Wayne CANTON MANSFIELD Columbiana Stark ABOUT TEAM NEO Team NEO is a regional, private-sector organization that markets Northeast Ohio to the world and collaborates with its partners and others to attract new businesses and help those that are here grow. We are the Northeast Ohio regional partner for JobsOhio, a private, nonprofit corporation that drives economic development and job creation for the state. As the JobsOhio regional partner, we support the retention and expansion work of our 18 county partners by connecting them, and their client companies, with both state and JobsOhio support as well as resources across Northeast Ohio. Since 2007, we have attracted 94 new company operations, more than 8,200 new jobs and nearly $360 million in annual payroll to Northeast Ohio. Since becoming a JobsOhio regional partner in 2011, we also have helped 254 companies within Northeast Ohio create or retain more than 68,000 jobs and add almost $3.3 billion in capital investment. For more information, visit Tuscarawas CONNECT WITH US GENEROUS SUPPORT PROVIDED BY: NETWORK REGIONAL PARTNER 737 Bolivar Road, Suite 2000, Cleveland, Ohio NEO Regional Marketing Alliance of Northeast Ohio
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