Middle Georgia Digital Economy Plan

Transcription

1 Middle Georgia Digital Economy Plan 2014

2 TABLE OF CONTENTS I. EXECUTIVE SUMMARY... 1 a. Project Purpose...1 b. Key Conclusions and Next Steps...2 II. INTRODUCTION... 5 a. Program Information...5 b. Regional Summary...7 c. Map of Region...16 d. Period of Work to Develop the Plan...17 III. REGIONAL STAKEHOLDERS a. Stakeholder Types Engaged...17 b. Highest Levels of Stakeholder Engagement...19 IV. REGIONAL OVERVIEW a. Economic Summary...20 i. Economic Summary of the region...20 ii. Major Employers...29 iii. Workforce Statistics & Utilization Rates...31 iv. Survey Results...33 b. Workforce and Education Summary...35 i. Population Projections...35 ii. Workforce Summary...36 iii. Educational Attainment...36 iv. Major Educational and Workforce Development Resources...37 v. Efforts to Improve Educational Attainment/Adult Learning...40 vi. Computer and Digital Readiness Indicators...40 c. Infrastructure i. Broadband Service Summary...41 ii. Key strengths in the region for broadband and areas in need...46 iii. Potential Partners and Leaders...47

3 iv. Additional Digital Economy Resources (beyond Community Anchor Institutions) Technology Incubators Makerspaces...48 d. Capital...49 i. Venture Capital Investments...49 ii. Unique Sources of Potential Funding Businesses and Cooperatives Foundations and Philanthropists Angel Investors Grants and Other Funding Assistance Other Entities and Non Profits...54 V. CURRENT DIGITAL ECONOMY PROJECT HIGHLIGHTS IN THE REGION a. Workforce...55 b. Infrastructure...65 c. Capital...66 d. Non Digital Economy Projects...67 VI. SWOC ANALYSIS VII. STRATEGIC FOCUS AREAS VIII. APPENDICES a. Stakeholders b. Digital Economy Informational Flier c. Business and Residential Survey d. Community Anchor Institution Information

4 I. EXECUTIVE SUMMARY a. Project Purpose The Middle Georgia Regional Digital Economy Plan strives to answer How can Middle Georgia, and the State of Georgia as a whole, leverage current technological assets and develop additional assets in order to promote the Digital Economy? This plan examines local and regional abilities to participate in the Digital Economy and identifies important resources, organizations, leaders, programs and investments that already exist, and those which can be leveraged in the future. It also identifies the region s gaps in infrastructure, workforce, and access to capital and seeks to align, prioritize and convert these gaps into actionable projects with goals that can be measured. The planning process analyzed the Digital Economy capacity of the region in three distinct areas: 1. Workforce capabilities and needs; 2. Supporting infrastructure and services for Internet connectivity; 3. Access to capital to invest in each region s plans to increase participation in the Digital Economy. These three topics guided the planning process and compelled each community to examine its current Digital Economy and associated positives and negatives. The most important value of the Middle Georgia Digital Economy Plan is to raise awareness, develop community and regional collaboration, prioritize objectives and establish plans to use our assets and strengths to be competitive as we move forward. The key to success for any region in the future will be cooperatively working together to leverage opportunities and mitigate threats brought about by the ever growing Digital Economy. Development of the Middle Georgia Digital Economy Plan hinged on engagement of stakeholders, review of existing data, and compiling information related to the three primary focus areas of the Digital Economy Plan Workforce/Education, Infrastructure and Capital. Stakeholder outreach efforts focused on gathering information related to Strengths, Weaknesses, Opportunities and Challenges (SWOC), Project Highlights, Potential Funding Sources, Strategic Focus Areas and Implementation Actions. To connect with stakeholders and the greater community during plan development, a variety of technological resources were utilized. Through the Middle Georgia Regional Commission website and social networking platforms such as Facebook and Twitter, stakeholder input was solicited and received and general awareness of the planning process was spread. Social media platforms, Facebook and Twitter especially, will continue to be utilized to maintain awareness and to increase support for specific implementation initiatives, such as the upcoming Digital Economy Summit and SparkMacon makerspace project. 1

5 Middle Georgia Regional Commission Digital Economy webpage: administration planning/digital economyplanning initiative/ Facebook: Twitter: twitter.com/midgadigital b. Key Conclusions and Next Steps The planning process identified a variety of innovative projects and initiatives related to promoting the Digital Economy in each of the three focus areas: Workforce/Education, Infrastructure and Capital. The Current Digital Economy Project Highlights section of the plan discusses these pockets of innovation, which serve as a foundation for additional digital growth and development, as well as inspiration for other communities aspiring to launch Digital Economy programs and initiatives. The plan also highlights projects that are not directly related to developing the Digital Economy, such as heritage tourism initiatives, but have a stake in the further development of broadband coverage within the region. Broadband connectivity and accessibility is crucial to advancing the region s digital capacity and growth. In terms of connectivity and accessibility, Middle Georgia maintains adequate broadband availability, particularly in regards to wireless access, where it is estimated greater than 90 percent of the region has broadband access. While wireless broadband access is pervasive in the region, it is limited by geography, and in most cases, data limits, or limits on how much data you can upload and download during a certain period of time. For this reason, wireline access is preferred by business and residential consumers. A glaring weakness, however, exists in regards to wireline broadband access, which is overwhelmingly preferred for business and household use. The demand and need for broadband access is hindered by the lack of wireline coverage in the region and the Digital Economy in the region may be negatively impacted by this lack of access. In addition to this wireline coverage gap, additional Strengths, Weaknesses, Opportunities and Challenges (SWOC) associated with Middle Georgia s Digital Economy were identified by project stakeholders. The plan contains a full SWOC Analysis and stakeholder input guided the selection of high importance issues, as defined in the table starting on the next page: 2

6 Workforce Strengths Opportunities Challenge Infrastructure Strength Concentration of higher education opportunities: Universities, technical colleges which are anchors of digital technology and positioned to further support the growth and development of Middle Georgia s Digital Economy. Establish self supporting makerspaces to facilitate innovation, mentoring and small business development. Reaching, low income populations, seniors and school age children who may not have access to technology outside of libraries or classrooms. Building awareness amongst local government and community leaders regarding the threats to current jobs as computerization and automation increases. Fiber connectivity nodes throughout the region. The City of Hawkinsville is particularly well connected with fiber due to the work of ComSouth. Technology Parks in Hawkinsville, Eatonton/Putnam and Twiggs County are well served by fiber as are a number of school systems within the Region including: Baldwin, Macon Bibb, Crawford, Houston, Jones, Monroe and Pulaski. Weaknesses Coverage Gaps. Wide ranging impact: 1.) lack of residential access can hinder education and prevent students (children and adults) from being able to complete homework assignments, 2.) Stagnates new business development and growth of existing business because companies are unable to take advantage of the latest technology to propel the business forward, 3.) Prevents economic development growth of non Digital Economy initiatives such nature based and cultural heritage tourism (which need additional coverage to combat increased absorption rates from trees and hills). Elected leadership is not technologically aware and do not realize the impact technology makes across all avenues within a community. Opportunities Challenges Increased education of elected officials of the importance of broadband access as a community development avenue. Fiber availability/overcoming service issues both in terms of access and reliability in the rural communities. Insufficient data speeds for upload/download hinders entrepreneurs and Internet based and reliant businesses. 3

7 Engaging service providers in Digital Economy growth processes and educating the public. Capital Challenges Lack of capital to support business growth and development within the region, particularly Venture Capital (VC) and Angel Investment to finance seed and early stage companies. To address the identified issues and opportunities and move implementation forward, the plan sets forth six Strategic Focus Areas and accompanying implementation activities. 1. Planning. The Digital Economy and broadband infrastructure should be a consideration in all planning documents and initiatives. 2. Local Government Policies. Local governments must understand the importance of broadband internet access, the economy this access supports, and should foster its development and use. 3. Education/Training. Citizens, organizations, local government officials, etc. should understand that this valuable resource is available to them and should learn to harness its capabilities. 4. Coordination amongst Local Associations. Organizations and individuals coming together to support the Digital Economy. 5. Websites. Enhance Middle Georgia s web presence and use of broadband technologies. 6. Makerspace. Fostering creation and innovation in Middle Georgia through the establishment of makerspace(s). One of the most unique features of the Middle Georgia Digital Economy Plan is that plan implementation is occurring simultaneously with the document preparation. Some of the most notable implementation activities include: Establishing Makerspaces in Macon (SparkMacon, opening in October/November 2014) and Warner Robins (Crowd Source Innovations Middle Georgia CSI MidGA); Training and education through a Digital Economy Summit (October 2014);and Incorporation of Digital Economy considerations into all local and regional planning documents, including the 2014 CEDS Annual Report and local government comprehensive plan Short Term Work Program updates. The above listed activities are only the beginning. Through ongoing stakeholder engagement and cooperation among the various local government and non profit partner agencies, 4

8 broadband providers, related business and industry and interested citizens, proactive plan implementation will continue and hopefully result in a more robust Digital Economy for Middle Georgia. II. INTRODUCTION a. Program Information What is the Digital Economy? The Digital Economy impacts nearly every facet of our society. Technically, the Digital Economy consists of business conducted through computers, computer networks and broadband internet access. However, this simplification does not provide proper credence to the Digital Economy and its ever expanding reach. The Digital Economy is e commerce, the technological workforce, infrastructure, education, training, etc. With ever increasing technological innovation and competition/globalization, people are turning more than ever to the Digital Economy and utilizing its capacities to further their individual or organizational goals. Farmers use wireless moisture sensors on farms to increase yield and use the Internet to advertise and sell their crops. Doctors see patients using telemedicine, detectives use social media to investigate crime and lawyers search and find legal precedents through online search rather than through paralegals and clerks. K 12 education and post secondary education is taking place more and more via an online medium. It is difficult to find a business or institution in Georgia that does not rely on the Internet and digital technology to improve service, lower cost, automate work, or expand into new markets. The Digital Economy is not a replacement of our economy but an evolution of using technology to adapt business to global innovation. The Digital Economy is enabled by access to information technology infrastructure, a skilled workforce and funding to incorporate these technologies and services into business operations. Computers, mobile phones, tablets, sensors, software applications and broadband networks are basic ingredients. Education, a skilled workforce, adult learning, and the financial resources to incorporate new technologies are critical enablers. As business adoption of the Internet reaches critical mass, competition will intensify for companies and workers alike. It can produce benefits that include wider access to resources, more effective health care and education systems, and a workforce with greater skills. Georgia s ability to incorporate and use them directly affects its competitiveness. Why is a Digital Economy Strategy Important to Georgia? Georgia s economy will increasingly be impacted by the Digital Economy, therefore, a long term strategy and planning is critical in providing stability and opportunity for future generations. 5

9 Georgia, in order to remain competitive nationally and internationally for jobs and private investment, must take a proactive approach in fostering a healthy Digital Economy. The Digital Economy is creating new industry and new business opportunities, such as one Georgia startup company, AirWatch, which sold in 2014 for over $1.5B. New technologies have lowered the costs and opened access to markets anywhere in the world by anyone in Georgia who has access to the technology, knowledge, skills and the drive to pursue them. No longer are businesses decisions constrained by transportation networks and proximity to suppliers. All many businesses need is an adequate Internet connection. The Digital Economy disrupts businesses and institutions that took decades to build. Jobs are being lost to offshoring of manufacturing enabled by the technologies and networks of the Digital Economy. Many video and record stores, bookstores, and even shopping malls were other early victims. This trend will accelerate. One study done by Oxford Professors indicates 47 percent of current professions could be at risk for automation by The Pew Research Center s Internet Project has been analyzing the impact of the internet for over a decade. Its most recent study in August 2014 analyzes how daily life will be changed by 2025 through the Internet, artificial intelligence and robotics, after speaking with almost 2,000 widely quoted technologists and analysts. The conclusions directly quoted below emphasize how large a role the Digital Economy will play in the future 2 : The Digital Economy: Reasons to be Concerned 1) Impacts from automation have thus far impacted mostly blue collar employment; the coming wave of innovation threatens to upend white collar work as well. 2) Certain highly skilled workers will succeed wildly in this new environment but far more may be displaced into lower paying service industry jobs at best, or permanent unemployment at worst. 3) Our educational system is not adequately preparing us for work of the future, and our political and economic institutions are poorly equipped to handle these hard choices. The Digital Economy: Reasons to be Hopeful 1) Advances in technology may displace certain types of work, but historically they have been a net creator of jobs. 2 Pew Internet, AI, Robotics, and the Future of Jobs, Aaron Smith and Janna Anderson, August 2014, of jobs/. 6

10 2) We will adapt to these changes by inventing entirely new types of work, and by taking advantage of uniquely human capabilities. 3) Technology will free us from day to day drudgery, and allow us to define our relationship with work in a more positive and socially beneficial way. 4) Ultimately, we as a society control our own destiny through the choices we make. What does the Regional Digital Economy Plan accomplish? The Regional Digital Economy Plan examines local and regional abilities to participate in the Digital Economy and identifies important resources, organizations, leaders, programs and investments that already exist, that can be leveraged in the future. The plans also identify each region s gaps in infrastructure, workforce and access to capital and align, prioritize and convert these gaps into actionable projects with goals that can be measured. How can Middle Georgia, and the State of Georgia as a whole, leverage current technological assets and develop additional assets in order to promote the Digital Economy? The planning process analyzes the Digital Economy capacity of each region in at least three distinct areas: 1. Workforce capabilities and needs. 2. Supporting infrastructure and services for Internet connectivity. 3. Access to capital to invest in each region s plans to increase participation in the Digital Economy. These three topics will guide the planning process and force communities to take a look at their current Digital Economy and its positives and negatives. The most important value of these plans is to raise awareness, develop community and regional collaboration, prioritize objectives and establish plans to use our assets and strengths to be competitive. The key to success for any region in the future will be cooperatively working together to leverage opportunities and mitigate threats brought about by the ever growing Digital Economy. b. Regional Summary The Middle Georgia region consists of Baldwin, Macon Bibb, Crawford, Jones, Houston, Monroe, Peach, Pulaski, Putnam, Twiggs, and Wilkinson counties. Considered the Heart of Georgia the Middle Georgia region is a blend of interdependent urban and rural communities with a rich history of arts and culture. Encompassing an area approximately 3,599 square miles, Middle Georgia, geographically, is located in the center of the state just 85 miles south of Atlanta. The region is divided north/south by the Ocmulgee River and east/west by the Fall Line. These two dividing lines converge in Macon, the region s economic and cultural center. The Fall 7

11 Line is the dividing line between the rolling slopes of the Piedmont and the sand hills of the Coastal Plains. It also marks the northern boundary of the Jacksonian Aquifer System, the largest single groundwater resource in the country. The region is also bounded on the east by the Oconee River. In addition, the Appalachian Divide, which represents the dividing line between the watersheds that empty directly into the Atlantic Ocean and the watersheds that feed into the Gulf of Mexico, runs through the western portion of the region and crosses the Fall Line in Crawford County. These natural dividing lines provide a rich environmental, biological, and geological diversity within the Middle Georgia region. The region is served by an excellent transportation network, consisting of two major interstate highways, numerous state highways, and several airports, which have the capabilities to serve general business related air traffic. The major highways radiate outward from Macon to all corners of the region. Interstate 75, one of the nation s busiest north/south arterials, bisects the region and provides convenient access to metropolitan Atlanta and major destinations in Florida. Hartsfield Jackson International Airport, one of the nation s busiest, is only 80 miles northwest of Macon via I 75. Interstate 16 provides a direct route from Macon to the port facilities in Savannah. The northern portion of the region (Putnam County) is located only a few miles south of Interstate 20, which has helped make this area attractive to suburban development from Atlanta. The Fall Line Freeway, when fully constructed, will provide direct highway access from Macon to Augusta and Columbus. The three largest cities, Macon, Warner Robins, and Milledgeville, are the cultural and financial centers of the region. Middle Georgia s current population is 488,399 with its two largest counties being Macon Bibb and Houston. By 2015, Macon Bibb County is estimated to have a population of 158,950 and Houston County a population of 147,990. The region s population is evenly distributed between urban and rural areas, with approximately 48 percent of the region s total population living within incorporated cities. Over the past 50 years, the region has enjoyed steady population growth, increasing by 70.6 percent between 1960 and New residents have been attracted by jobs and affordable housing costs to the region and over the next 30 years there is a projected regional population growth of slightly more than 100,000 as shown below in Chart 1. 8

12 Chart 1: Middle Georgia Region Population Projections ( ) 700, , , , , , , , , , , , , , , Source: Woods & Poole Economics, State and County Projections to 2040, 2014 Although population varies county by county, the majority of the 11 counties are projected to have moderate growth in the next 30 years. Twiggs and Wilkinson counties are the only two communities expected to experience a slight decline in population. The chart below demonstrates the projected population trends for each county within the Middle Georgia Region between 1990 and

13 Chart 2: Middle Georgia Population Projections By County ( ) 180, , , ,000 Population 100,000 80,000 60,000 40,000 20, Baldwin 39,530 44,700 45,720 45,840 47,620 49,350 50,970 53,860 Bibb 149, , , , , , , ,520 Crawford 8,991 12,495 12,630 13,610 15,020 16,520 18,120 21,600 Houston 89, , , , , , , ,990 Jones 20,739 23,639 28,669 30,440 32,980 35,650 38,400 44,150 Monroe 17,113 21,757 26,424 28,370 30,670 33,070 35,540 40,670 Peach 21,189 23,668 27,695 28,820 30,070 31,310 32,480 34,630 Pulaski 8,108 9,588 12,010 11,980 12,270 12,540 12,770 13,120 Putnam 14,137 18,812 21,218 22,640 24,310 26,010 27,700 31,000 Twiggs 9,806 10,590 9,023 8,900 9,050 9,170 9,270 9,370 Wilkinson 10,228 10,220 9,563 9,530 9,620 9,680 9,720 9,700 Source: Woods & Poole Economics, State and County Projections to 2040,

14 As expected, development intensity within the Middle Georgia region is greatest in the cities of Macon, Warner Robins, and Milledgeville. Most of the region is characterized by rural development patterns, consisting of scattered residences and small businesses juxtaposed with large agricultural and forest areas. Unlike many urbanized areas in the country, Macon and Warner Robins are located in very close proximity to significant undeveloped natural resource areas, such as the Oconee National Forest, the Piedmont National Wildlife Refuge, Ocmulgee National Monument, and numerous recreational lakes and reservoirs. Milledgeville and Perry are the region s third and fourth largest urbanized areas, respectively. These cities exhibit traditional small city urban development patterns, consisting of a downtown central business district surrounded by suburban residential and commercial uses. Milledgeville has a high concentration of institutional uses due to the presence of Central State Hospital, the Youth Development Center (YDC), and the campuses of Georgia Military College and Georgia College and State University. Industrial and manufacturing uses form the heart of Perry s economic base. Both cities have extensive suburban commercial districts in the fringe areas along major highways. The region contains numerous small urban centers scattered throughout the rural areas, such as Byron, Fort Valley, Eatonton, Forsyth, and Gordon/Ivey. Most of these urban centers range in population from 4,000 to 8,000. The cities have small downtown cores, usually limited to four blocks or less, surrounded by low intensity suburban residential districts. They serve as important business and finance centers for the surrounding rural areas. The remaining smaller cities exhibit traditional village development patterns. A visual representation of the population density within Middle Georgia is depicted on the following page. 11

15 Source: American Factfinder2, Total Population for Block Groups 12

16 Many changes have occurred within the Middle Georgia region over the past 30 years. Market forces have driven rapid expansion of the commercial bases in the region s larger cities. Expansion and improvement of the transportation network has opened previously remote areas of the region for intensive development, and suburban residential development has expanded into rural areas. The economic decline in agriculture and the kaolin mining industry has forced many farms and communities to diversify. As a result, economic prosperity within the region has shifted from the rural areas to the larger cities. The region s economic base is diverse. Robins Air Force Base (RAFB), which employs approximately 25,000 military and civilian workers, is the largest industrial complex in the region and the state. The Base employs workers from all 11 of the region s counties as well as from multiple counties outside the region. The larger cities have strong manufacturing and commercial bases. Agriculture and mining play an important part in the economies of the rural counties south of the Fall Line, while forest industries and manufacturing are the primary economic pursuits in the rural counties north of the Fall Line. Furthermore, all of the region s major public recreational lakes are located north of the Fall Line. These lakes form the core of the region s recreational tourism base. Small, entrepreneurial businesses are well served by the Georgia Small Business Lender (GSBL), a Certified Development Company of the U.S. Small Business Administration (SBA), which offers a number of loan programs and the Business Outreach Services (BOS) office located in Macon and operated by the University of Georgia to support businesses in the region. Over half of the counties within Middle Georgia have been designated as Entrepreneur Friendly communities by the State of Georgia, these include: Baldwin, Houston, Jones, Peach, Pulaski, Putnam, and Wilkinson. Most of the communities have a number of jobs for unskilled labor and are working to expand job opportunities for skilled laborers, particularly in the rural areas, which traditionally have been single industry communities. Whenever possible, the communities in the region utilize state workforce training programs such as Quick Start and Georgia Work Ready. In addition, there are a number of workforce development centers located throughout the region. The region also has an abundance of higher education opportunities, with three major four year liberal arts colleges; Mercer University in Macon, Georgia College and State University in Milledgeville, and Fort Valley State University in Fort Valley. The region is also home to Georgia Military College in Milledgeville, and Wesleyan College and Middle Georgia State College in Macon. The region is also wellserved by Central Georgia Technical College, which operates campuses in Macon, Milledgeville and Warner Robins and Adult Learning Centers in Crawford, Jones, Monroe, Putnam and Twiggs counties. There are approximately 10 additional adult education centers located throughout Houston, Peach and Pulaski counties, which includes the Hawkinsville Workforce Development Center. Wilkinson County is served by the Oconee Fall Line Technical College which operates an 13

17 Adult Education Center located between McIntyre and Gordon along Highway 57. These technical colleges provide the region with a wide array of adult education services and vocational education programs and opportunities. While the region does offer entry level job opportunities for recent graduates, particularly in the larger cities of Macon and Warner Robins, many college graduates do not stay and work in Middle Georgia, choosing instead to go to Atlanta or other larger metropolitan areas. Another trend noted by local business owners is the phenomenon of recent college graduates staying and working in the region for two to three years to gain experience then moving on to larger markets. Every county has a development authority and chamber of commerce, most of which work jointly toward business retention and recruitment. A number of communities are rural and largely dependent on one or two employers, and within the past few years have begun to realize the need to diversify the local economic base. The Kaolin Industry, for example, was the economic backbone of both Twiggs and Wilkinson counties, and the industry s decline over the past decade has awakened the communities to the necessity of cultivating additional industry. The communities of Middle Georgia consistently work together on regional issues through involvement in the regional organizations such as the Middle Georgia Clean Air Coalition (MGCAC), Middle Georgia Economic Alliance (MGEA), and nearly every community is a member of a regional joint development authority. The benefits of a regional promotion and marketing effort are many. It allows for a pooling of resources; a multi county area can do more working together than one community can do individually, it is easier to market a region because of the greater amount of amenities offered and it is easier to attract businesses, industry, and visitors to a region than to a single community for the same reason. Additionally, it is more costeffective to market and promote a multi county region than a single local entity. Some examples of coordinated economic development efforts in the Middle Georgia region include the Central Georgia Joint Development Authority (member governments include Macon Bibb, Crawford, Jones, Monroe, and Twiggs counties); the Middle Georgia Joint Development Authority (member governments include Houston, Peach, and Pulaski counties); the Fall Line Industrial Authority (Baldwin and Wilkinson counties); and the Middle Georgia Consortium, a regional association of workforce development agencies, business leaders, and other local partners seeking to improve the labor market success of Middle Georgians. The Consortium s service area includes the counties of Baldwin, Crawford, Houston, Jones, Monroe, Peach, Pulaski, Putnam, Twiggs, and Wilkinson. The more recently established Aerospace Region, comprised of Macon Bibb, Houston, Peach, and Pulaski counties and Robins Air Force Base, was founded to facilitate regional coordination 14

18 and cooperation toward attracting related aerospace industry, and improving the skills and labor force with students coming out of the educational pipeline to support these industries. The economic development organizations and regional joint development authorities have a strong understanding of the types of businesses already in the communities and consistently work toward the recruitment of compatible business and industry. 15

19 c. Map of the Region 16

20 d. Period of Work to Develop the Plan Development of the Middle Georgia Digital Economy Plan hinged on engagement of stakeholders, review of existing data, and compiling information related to the three primary focus areas of the Digital Economy Plan Workforce/Education, Infrastructure and Capital. Stakeholder engagement began in June 2013 with focus group meetings held with representatives from local government, K 12 schools and higher education institutions, economic development professionals, healthcare and public safety officials (Monroe, Baldwin, Pulaski counties). Special interest organizations were also engaged with MGRC staff presenting information at regularly scheduled meetings of the following organizations: Middle Georgia Economic Development Alliance Technology Association of Georgia Middle Georgia Chapter Middle Georgia Regional Commission Council Meetings. Many stakeholders were engaged in a one on one or in small group meetings, particularly the elected government leaders and staff, Chambers of Commerce, Development Authorities, service providers, and Main Street and Downtown Development Authorities. Major employers within the region and workforce development professionals were engaged, and existing planning documents, such as the Middle Georgia Regional Plan and the Comprehensive Economic Development Strategy (CEDS) for the Middle Georgia Region, were consulted. As this is a Digital Economy plan, technological resources were utilized to connect with stakeholders and the greater community in developing the plan. Through the Middle Georgia Regional Commission website and social networking platforms, such as Facebook, stakeholder input was solicited and received and general awareness of the planning process was spread. III. REGIONAL STAKEHOLDERS a. Summary of Stakeholder Types Engaged Stakeholder and community input was critical to the planning process. To identify the region s unmet needs and opportunities to build capacity related to digital assets, broadband infrastructure and services, the Middle Georgia Regional Commission implemented a stakeholder engagement process to educate and engage local leaders. Stakeholder engagement was focused around the State of Georgia s four priority planning areas: 17

21 1. Economic Development: Creating Jobs and Growing Businesses 2. Education: Developing, Life, College and Work Ready Students 3. Public Safety: Protecting the Public s Safety and Security 4. Healthcare: Accessible Healthcare Steering Committee members were established to guide the planning process and stakeholder engagement. The following individuals were appointed to the Stakeholder Committee: Baldwin Matt Poyner Macon Bibb Robert Reichert Crawford Charles Cook Houston John Harley Jones Jimmy Roberts Monroe John Howard Peach Melvin Walker Pulaski Lee Slade Putnam John Reid Twiggs Ken Fowler Wilkinson Jonathan Jackson It was further determined that the following individuals also needed to be consistently engaged in the planning process: Mary Robinson Connect2Compete Lynn Murphey Cox Dennis Farrell Windstream Terry Smith AT&T With a Steering Committee established and key stakeholders identified, it was possible to target specific sectors and organizations with a vested interest in the Digital Economy and seeing the Digital Economy grow. The following organizations were targeted: Economic Developers and Economic Development Organizations K 12 Educators and Educational Organizations Post Secondary Educators and Educational Organizations Healthcare Providers and Healthcare Organizations Technology Association of Georgia (TAG) Chambers of Commerce Local Government Elected Officials and Staff Main Street Organizations Downtown Development Authorities 18

22 Stakeholder outreach and communication was completed and information was received utilizing a multi platform strategy that included the following: Hardcopy questionnaires 3 Presentations to professional associations and organizations across the region Meetings with local government elected officials and staff Telephone interviews with stakeholders Focus group meetings Technology based outreach including: o communication o Website: administration planning/digitaleconomy planning initiative/ o Facebook: o Twitter: twitter.com/midgadigital o Online surveys for businesses and residents 4 ( and Middle Georgia Regional Commission Council Meetings o The monthly Middle Georgia Regional Commission Council meetings provide a more relaxed forum for community leaders to maintain contact, build connections, and discuss issues of regional concern. b. Highest Level of Stakeholder Engagement Outreach efforts focused on gathering information related to Strengths, Weaknesses, Opportunities and Challenges (SWOC), project highlights, sources of potential funding and strategic focus areas and implementation actions. As described above, a multi faceted approach was utilized to obtain stakeholder engagement and input 3 The data and information obtained through the hardcopy questionnaires and online business and residential surveys are located in Appendix C. 4 The data and information obtained through the hardcopy questionnaires and online business and residential surveys are located in Appendix C. 19

23 The Middle Georgia Regional Commission developed an online survey designed to gather information from local stakeholders for use in the Digital Economy planning effort. A separate survey was developed for residents and for businesses. MGRC sought the support of the Chambers in publicizing the surveys through e blasts and weekly e newsletters to chamber members. The survey was active from early May to mid September Of the stakeholder outreach efforts, MGRC staff anticipated that the hardcopy questionnaire and online businesses and resident survey would yield a higher interest than what was actually received. The response rate to the residential survey was nearly double the business response rate, with 132 residents responding and 67 businesses. Specific data related to the responses received is found on pages and comprehensive survey results are located in Appendix C. The greatest success and input was obtained through one on one communication and small group meetings. Telephone interviews were conducted with leaders of the following agencies and organizations within all 11 Middle Georgia counties: Chamber of Commerce, Development Georgia Department of Community Affairs (DCA) annual planning services contract requires biennial Plan Implementation Assessment meetings and RC staff utilized these meetings to share information about the Digital Economy planning effort and to seek input and recommendations from elected leaders and local government staff. Ongoing engagement of stakeholders will be critical throughout the implementation of the Digital Economy Plan. Social media platforms, Facebook and Twitter especially, will continue to be utilized to maintain awareness and to increase support for specific implementation activities, such as the upcoming Digital Economy Summit and SparkMacon makerspace project. IV. REGIONAL OVERVIEW a. Economic Summary i. Economic Summary of the Region In order to understand the Digital Economy and foster its growth, it is critical to obtain an understanding of the overall economic situation in Middle Georgia. Only then will we as a community be able to determine where the Digital Economy fits into the overall economic picture and how it can be further developed. Resources, infrastructure, workforce, training, etc. are key issues for the entire economy and what we learn from one sector will assuredly relate to other sectors, including the technological sector. Middle Georgia, with 11 counties and 21 cities, spans over 3,600 square miles and features dynamic New South cities, picturesque small towns, fertile farms and pine covered woodlands. Over 495,000 Georgians live in the region, and the region s growing population includes newly arriving residents from around the world at all stages of life and career. The region s workforce, which now numbers over 230,000, includes a diverse cross section of workers in agriculture, 20

24 manufacturing, construction, healthcare, government and other professions. Middle Georgia has a production based economy as evidenced by the export/import ratio shown in the below Economy Summary. MIDDLE GEORGIA ECONOMIC SUMMARY Jobs 185,108 Average Earnings $48,595 GRP $16,553,016,528 Exports $35,699,433,827 Imports $27,969,590,025 Source: EMSI, 2014 Middle Georgia benefits greatly from its strategic location in the state and in the Southeast. Located at the intersection of two major interstates (I 75 and I 16), Middle Georgia has become a hub for commercial trade, making it ideal for companies seeking the most efficient way to get their products to consumers. The Digital Economy and the robust technological infrastructure in place in Middle Georgia is a critical component in these logistical operations. Coupling these benefits with a positive business environment and low overhead costs, Middle Georgia is one of the reasons Georgia is the best state for business. Airports The country's 10th largest cargo hub, Atlanta's Hartsfield Jackson International Airport, is an average of 90 miles from any county in Middle Georgia. Shipments from the facility can reach 80 percent of the U.S. market within two hours, and any major North American city within four hours. In addition, the region has multiple airports located throughout that can cater to any need. Railroads Middle Georgia has an extensive railway subsystem that cuts through the region and offers connection to all major rail lines throughout the Southeast. The Brosnan Yard in Macon, is one of the largest rail switching centers on the east coast, with tracks running into the facility from seven major points (Atlanta, Jacksonville, Savannah, Augusta, Albany, Columbus and Brunswick.) Over 17 million tons of freight move through the region s railroads annually. The region is served by two Class 1 Railroads CSX and Norfolk Southern and several short line railroads providing connectivity to and from Savannah and Atlanta. Highways Middle Georgia serves as a hub for roadway transportation. Three major Interstates (I 75, I 16, I 475) seven U.S highways, and close to 30 state routes travel through the region. By roadway, the Middle Georgia region sees over 2.2 million tons of freight enter the area for distribution and 2.8 million tons leave the state bound for distribution outside of the state. Truck travel from this region can arrive at any 21

25 southeastern market within one day s time and 80 percent of the U.S. population in two! Seaports Middle Georgia is accessible to a number of major seaports in Georgia and the Southeast. The Port of Savannah, operated by the Georgia Ports Authority, is the fastest growing port in the U.S and second largest port on the East Coast. This twoterminal facility exports over million tons of cargo annually and can be accessed in less than 2.5 hours from anywhere in the region by Interstate 16. Through an excellent road system, Middle Georgia also allows access to the ports of Brunswick, Charleston, and Jacksonville within four hours. Middle Georgia maintains a diverse economic environment. From agriculture to aerospace, Middle Georgia has fostered economic opportunity and growth from a variety of disparate sectors. Macon Bibb and Houston counties represent the two employment/industrial centers in the region. With many large and small employers, these two communities are home to 61 percent of the region s total population. The remaining 39 percent is distributed among the other nine counties of the region, the smallest being Twiggs County with a population of 8,447. The map on the next page shows some of the major employers for each county in the region. 22

26 MAJOR EMPLOYERS IN MIDDLE GEORGIA 23

27 There are approximately 10,683 employers in the Middle Georgia region, providing an estimated 185,108 jobs. These jobs maintain an average earning level of $48, As shown in the below table, Federal Government employment is the largest industry in the region in terms of numbers of people employed. A large portion of these jobs emanate from Robins Air Force Base, the single largest industrial site in the State of Georgia with over 25,000 employees. The table below shows the top 10 industries in Middle Georgia by employment totals. Industry TOP MIDDLE GEORGIA INDUSTRIES BY EMPLOYMENT 2014 Jobs Change % Change Federal Government, Civilian, Excluding Postal Service 15, % Elementary and Secondary Schools (Local Government) 11, % Limited Service Restaurants 8, % Local Government, Excluding Education and Hospitals 7, % Full Service Restaurants 7, % General Medical and Surgical Hospitals (Private) 6, % Direct Property and Casualty Insurance Carriers 5, % Offices of Physicians (except Mental Health Specialists) 4, % State Government, Excluding Education and Hospitals 4, % Nursing Care Facilities 3, % Source: EMSI, 2014 Middle Georgia has a varied and robust workforce, however, unemployment in the region continues to be an issue. With two communities, Baldwin County and Peach County, having double digit unemployment figures and the region as a whole maintaining an overall unemployment rate higher than the state and the U.S., efforts must be made to improve the labor market here in Middle Georgia. Such improvements may be made through continued development of the Digital Economy. Of particular concern to the Middle Georgia Region is the loss in defense related jobs over the last few years. Since 2013, Middle Georgia has experienced significant job losses related to Department of Defense actions totaling approximately 1,965 jobs. Amongst major employers losing jobs over this period of time are Boeing, DynCorp International, and Robins Air Force Base. The table below outlines recent defense related job losses in the region. 5 EMSI,

28 Company Date Number of Jobs Lost Boeing 4/1/2014 6/30/ DynCorp 3/25/ Robins Air Force Base FFY 2012/ (Civilian) Robins Air Force Base (Civilian) Air Force Reserve Command Total 1,965 Sources: Letter from Boeing, Georgia Department of Labor WARN System (DynCorp), Robins Air Force Base 78 th ABW Director of Staff in Appendix D in the associated Scope of Work. In working towards mitigating defense related job losses the Middle Georgia Region has applied for, and received, funding from the U.S. Department of Defense Office of Economic Adjustment. With the award, Middle Georgia will be able to better insulate the region from these and future defense related job losses through a series of region wide initiatives geared towards economic diversification and regional leadership. LABOR MARKET OVERVIEW GEOGRAPHY LABOR FORCE EMPLOYED UNEMPLOYED RATE Baldwin 18,156 16,200 1, % Bibb 72,786 66,486 6, % Crawford 6,005 5, % Houston 68,738 63,754 4, % Jones 14,234 13, % Monroe 13,934 12, % Peach 12,315 11,007 1, % Pulaski 4,214 3, % Putnam 8,737 8, % Twiggs 3,732 3, % Wilkinson 4,424 4, % Middle Georgia 227, ,488 18, % Georgia 4,782,415 4,429, , % United States n/a n/a n/a 6.20% Source: Georgia Department of Labor, July 2014 Fortunately, employment opportunities in the region are growing, though growing at a slower rate than the statewide and national trends. MIDDLE GEORGIA EMPLOYMENT TRENDS Geography 2013 Jobs 2014 Jobs % Change 25

29 Region 184, , % State 3,898,078 3,985, % Nation 133,366, ,807, % Source: EMSI, 2014 Middle Georgia has traditionally relied on several industry clusters for employment, private investment, and community growth. While some sectors, such as kaolin, are declining, others, such as logistics, are increasing in terms of jobs and investment within the community. Many of these economic clusters are in a state of transition. Technology, while not listed below as a separate sector, will be increasingly important across all industry sectors as new technologies are constantly emerging and evolving. Textiles The textile industry in Middle Georgia, like much of the state and nation, has experienced a significant decline in recent years as many of the processes and operations have transitioned to overseas markets. Over the past five years, a number of Middle Georgia textile manufacturers have ceased operations, resulting in vacant buildings and local residents without jobs. Without exception, these industries have indicated that overseas competition stifles the wages that can be paid to employees in order for the local facility to remain profitable. Kaolin Another sector declining within the Middle Georgia district surrounds the kaolin industry. Kaolin is a white clay mineral used in household items (such as ceramics and incandescent light bulbs), health and beauty products (such as toothpaste, cosmetics, and previously in Kaopectate), in food products (such as food additives and a spray coating on fruits and vegetables), as well as in coated paper products. Again, overseas competition from South America and Asia have hampered Middle Georgia s kaolin mining industry by paying lower wages and failing to follow the same environmental reclamation requirements as American industries. A number of kaolin facilities within Middle Georgia have ceased operations or reduced operations in the last decade. Hardest hit by these closures are the two counties (Twiggs and Wilkinson) whose local economies are the most dependent upon the kaolin industry. Warehousing and Distribution Middle Georgia, with its central location and robust transportation network, is a gateway for trade throughout the state and ultimately, the nation. Located in central Georgia between Savannah and Atlanta with major highway access, interstate access, airport access, and proximity to major ports and major markets, Middle Georgia is poised for logistical efficiencies. These advantages make it an ideal venue to establish distribution operations and reduce supply chain costs. The Middle Georgia Region is home to: 26