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Feb. 28, 2018
A New Vision for Marketing New Mexico
1720LouisianaBlvd.NE,Suite312|Albuquerque,NM87110|505-247-8500|www.nmpartnership.com
Overview
Ground-updevelopmentofnewstrategicplan
inFY17…implementinginFY18andbeyond
Drivinganexpandedsetofourtraditionalhigh-touchsales
activities
Whilesimultaneouslyimplementingmarketing
activitiestodrivegreaterpipeline
scalability
Focusonmessagingthateffectively
differentiatesNewMexicofrom
competitors
1
Challenges
• The Partnership’s belief is that pipelines, across the board among the economic development organizations in the state, are just not deep enough.
• Critical to remember that:- Many projects looking at location change don’t go anywhere … nobody wins them.
- Of those that do, there are usually three to five finalist states … so, you have a 20% to 33% chance on average.
- On top of this, while some projects involve a fast decision, many have VERY extended decision timeframes; it can easily take a year or more from initial contact to announcement.
• With this in mind, it’s important to make the pipeline as large (and relevant) as possible to maximize job/investment inflow.
• We’ve identified three key challenges to accomplishing this objective, and our strategic plan has been developed to address these.
2
Challenges:Awareness
• Inside NM, belief is that there are attributes of the state/communities that are acting as barriers to business attraction, “they don’t come here because they don’t like ________ about New Mexico.”
• Ask decision makers outside NM? They don’t come because they don’t know much of anything about us.
• So, the bad news is we aren’t even on the radar screen, and we have to start marketing aggressively. Time consuming and expensive.
• The good news? We are trying to place a positive narrative of our own choosing/construction, we don’t have to try changing a negative narrative.
(1)Lackoffamiliaritywith,andknowledgeabout,NewMexicoremainsoneofourbiggestchallenge.
(2)Likemanycommunities,weareoftenourownworstcritics!
(3)Highaspirationsaboutwhoweexpecttocompeteagainst… butsignificantresourceconstraints.
3
Challenges:Focus on Negative Messaging
(1)Lackoffamiliaritywith,andknowledgeabout,NewMexicoremainsoneofourbiggestchallenge.
(2)Likemanycommunities,weareoftenourownworstcritics!
(3)Highaspirationsaboutwhoweexpecttocompeteagainst… butsignificantresourceconstraints.
• We’ve received feedback, repeatedly, from multiple sources – advisors, executives, media –that we are particularly adept at being overly self-critical and are seldom promoting positive news.- Publicizing and discussing problems is a valid and
necessary tool for addressing public policy issues.- Framing them hyperbolically, however, is not necessarily a
positive for economic development.
• There is nothing wrong with publicizing positive information; and encouraging thought leaders, public officials, and the media to do so is critical.
4
Challenges:Resource Constraints
(1)Lackoffamiliaritywith,andknowledgeabout,NewMexicoremainsoneofourbiggestchallenge.
(2)Likemanycommunities,weareoftenourownworstcritics!
(3)Highaspirationsaboutwhoweexpecttocompeteagainst… butsignificantresourceconstraints.
5
• Strong consensus about who we should be competing against; and it’s invariably places many multiples of our scale.
• At the same time, we do face real and significant resource constraints.
6
Competitive Aspirations
39,250,017
27,862,596
7,288,000
6,931,071
5,540,545
2,081,015
02,000,0004,000,0006,000,0008,000,00010,000,00012,000,00014,000,00016,000,00018,000,00020,000,00022,000,00024,000,00026,000,00028,000,00030,000,00032,000,00034,000,00036,000,00038,000,00040,000,000
California
Texas
Florida
New
York
Illinois
Penn
sylvania
Ohio
Georgia
NorthCarolina
Michigan
New
Jersey
Virginia
Washington
Arizo
naMassachusetts
Tenn
essee
Indiana
Missou
riMaryland
Wisc
onsin
Colorado
Minne
sota
SouthCarolina
Alabam
aLouisia
naKe
ntucky
Oregon
Oklahom
aCo
nnecticut
Iowa
Utah
Mississippi
Arkansas
Nevada
Kansas
New
Mexico
Neb
raska
WestV
irginia
Idaho
Hawaii
New
Ham
pshire
Maine
Rhod
eIsland
Mon
tana
Delaware
SouthDa
kota
NorthDakota
Alaska
Verm
ont
Wyoming
StatePo
pulatio
n
Aspirationsareconsistentlyhigh.Amongpolicymakers,thebusinesscommunity,economicdevelopers,andmedia,whenopinionsarevoicedaboutwhatstatesNewMexicoshouldcompeteagainst,itistypicallyahandfulofmuchmorepopulousstates.Themostcommonare:• California• Texas• Washington• Arizona• Colorado
Source: U.S. Census Bureau
7
Resource Constraints
*Excludes35staffinfunctionsnotsimilartothoseperformedbytheNMPartnership.
22
29
1413 13
5
0
5
10
15
20
25
30
NorthCarolina*
Utah NewJersey
Alabama Missouri NewMexico
CurrentStaff• While competitive aspirations are high, spending on economic development is significantly lower than what is typical in other states.
• For example, other states have organizations with roles similar to the Partnership.
• These organizations have typically 2 ½ to almost 6 times the staff of the Partnership; and this does not vary systematically by the scale of the state. Similarly, all had significantly higher annual revenues with which to fund operations.
• We are certain we would not find vastly different results when benchmarking the staffing/spend for other economic development organizations across the state.
Overarching Strategic Objectives
Continuetomaximizeeffectivenessofexisting,high-touch/relationship-basedsalesactivities.
Increasepipelinequantity,diversity,andqualitybymarketingthestateanditscommunitiestoamuchlargeraudienceofdecisionmakersandinfluencers.
Evolveourmessaging.Allmessagingshouldfocusonhighlightingouruniquedifferentiatorsandcompetitiveadvantages.
8
FY 2018 Trade Shows, Sales Missions, and Events
9
• FY 2018 Calendar (July 1, 2017 to June 30, 2018)
• Increased total events up to 26 (~24% increase vs. FY2017):- 13 Trade Shows- 11 Sales Missions- 2 Fam Tours
• Goals- Sell NM and its communities- Attract projects, build
contacts/relationships - Gather market and sector
intelligence
7/24 - 7/30 EAA Airventure: Oshkosh, WI (aircraft manufacturers and suppliers trade show)7/26 - 7/29 Outdoor Retailer Summer Show: Salt Lake City, UT (outdoor product manufacturing)
9/20 - 9/21 Chicago Sales Mission
10/7 - 10/11 Industrial Asset Management Council: Richmond, VA (real estate and site selection conference)10/17 - 10/19 Breakbulk Americas: Houston, TX (logistics trade show)
11/5-11/6 CoreNet Global Summit: Seattle, WA (commercial real estate conference11/7-11/8 Seattle Sales Mission
12/13 - 12/14 Los Angeles Sales Mission
8-Feb Phoenix Sales Mission
Date: TBD Detroit Sales Mission Feb - 27, 28, Mar 1Date: TBD Cleveland Sales Mission
3/12 - 3/15 Data Center World (data center/IT/software/hardware) San Antonio3/19 - 3/21 Site Selectors' Guild Annual ConferenceDate: TBD Southern NM Fam Tour
4/9-4/10 MODEX: Atlanta, GA (logistics trade show)4/11-4/12 Atlanta Sales Mission4/10 - 4/12 MRO Americas: Orlando, FL (aircraft maintenance, repair, overhaul and parts manufacturing)4/30 - 5/3 AUVSI: Denver, CO (unmanned vehicle/systems/supplier manufacturing) - NM Pavilion
Date: TBD Central/Northern Fam TourDate: TBD NY/NJ/CT Tri-State Sales MissionDate: TBD Minneapolis Sales Mission5/22 - 5/25 ICMI: Orlando (contact center conference)
6/12 - 6/14 Global Petroleum Show: Calgary, AB (oil and gas related manufacturing/service providers6/20-6/21 SelectUSA: Washington DC (foreign direct investment conference)6/22-6/23 DC/VA Sales MissionDate: TBD Dallas Sales Mission
December
January
July
September
October
November
February
March
April
May
June
Capture/draw in-flow of potential newsworthy information
Production of customized collateral and/or messaging
Ongoing maintenance and expansion of target lists for direct outreach
Engineering of earned media/editorial opportunities, development of potential content
Leverage full range of communication channels to disseminate messaging
10
• Key types of messaging- Economic development activity;
announcements, policy- Much broader scope of relevant content;
local/national stories which cast the state in a positive light on any topic even tangentially associated with a positive environment for businesses (economic activity, business/industry trends, demographics, policy, culture, etc.)
- Developed content; identify relevant topics, create messaging, and deliver to relevant audiences
• The objective is external visibility, creating a positive narrative, and projecting an image of vitality. It’s not aimed at claiming organizational credit or self-promotion (these are meaningless to outsiders).
• Targets- Traditional NM Partnership scope of advisory,
brokerage, industry contacts for direct outreach
- But, expand into a much broader relevant audience of decision-makers and influencers via digital and social media, greatly enhanced web presence, and earned media/editorial placement
Our overall approach needs to be ‘Relentless PR’
11
Improved Messaging Structure
TraditionalMessaging
We’reinexpensive
Wehaveincentives,andwe’llpayyouto
comehere
Lotsofpeoplehereneedjobs,andyoucan
hirethemeasily
Greatweather!
12
Improved Messaging Structure
We’reinexpensive
Wehaveincentives,andwe’llpayyouto
comehere
Lotsofpeoplehereneedjobs,andyoucan
hirethemeasily
Greatweather!
Herearethewayswealignwithwhatyourbusinessneedstosucceed;talent,
infrastructure,innovationengines,strategic
location,riskmitigation,etc.
Afavorablecompetitiveenvironmentwherequalityemployerscansuccessfully
competefortoptalent
Qualityofplace/qualityoflifefactorsthat
tangiblybenefitsemployers
Acostadvantagethatprovidesastrongvalueproposition
Theincentivetoolsweneedtocompete
withyourotherlocationoptions
TraditionalMessaging
NewMessaging
124,581 117,796
38,262
17,662 1,552
51,346
020,00040,00060,00080,000
100,000120,000140,000
Rank State 2011to2015MigrationtoNM
1 Texas 68,488
2 Arizona 31,404
3 California 29,006
4 Colorado 24,653
5 Florida 14,680
6 Virginia 7,093
7 Oklahoma 6,863
8 Washington 6,267
9 Utah 6,252
10 Illinois 5,973
Migration from Outside New Mexico2011 - 2015
5%
26%
31%
10%
11%
24%
4% 6%
Pacific
Mountain
West North
Central
WestSouth
Central
EastNorth
Central
EastSouth
Central
South Atlantic
Middle Atlantic
New England
17%
NewMexico
Rate of Population Change by Census Division2000 - 2016
New Mexico is squarely in the path of growth. We are located in the fastest growing region in the U.S. since the turn of the century.
• From 2000 through today, the U.S. population grew by 14.8%; less than 1% per annum.
• By contrast, the Mountain Division, where New Mexico is located, grew by 31.3%; approx. 2% per annum.
• Increasingly, companies globally are recognizing that locating in this region is key to positioning themselves in the path of growth.
A total of 351,209 people have moved to New Mexico from outside our borders during the most recent five years for which the Census Bureau has published data.• While large numbers have come from the West and South, in
particular neighboring states such as Texas and Arizona, we are also attracting people from large population centers such as Florida and Virginia on the opposite side of the nation.
• In addition, international migration remains strong; with over 50,000 people coming from outside the U.S. during these five years
Differentiating Factors:Geographic Location and Demographic Trends
13Source: U.S. Census Bureau
14
Differentiating Factors:Geographic Location and Demographic Trends
Source: Workforce data and projections from U.S. Bureau of Labor Statistics. Birth rate data from U.S. Census Bureau.
Our presence in the nation’s fastest growing geographic region is a strategic advantage to companies that locate in New Mexico.Fundamental demographic trends are leading to a persistent long-term shortage of talent in the U.S., and as the talent pool grows tighter and tighter, companies in New Mexico will be better positioned to satisfy their labor needs than will their competitors remaining in slow growth regions.
• The Bureau of Labor Statistics predicts a continued slowing of workforce growth going forward. - This is being driven by fundamental trends such as declining
U.S. birth rates since the baby boom peak in the late ‘50s early ‘60s.
- Near-term the U.S. will see average annual workforce expansion of ~0.7% per annum. Longer-term, the average annual rate is expected to be ~0.5% per annum.
- This is in stark contrast to the peak levels that approached, and at times even exceeded, 2% per annum.
• Companies are adopting geographic diversification as a strategy for ensuring long-term access to high-quality, skilled resources fundamental to maximizing corporate performance.
0.0
5.0
10.0
15.0
20.0
25.0
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
Births per 1,000Populat ion
1.1%
1.7%
2.6%
1.6%
1.3%
0.8% 0.7% 0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Labor ForceGrowthRate
Differentiating Factors:Workforce and Industry
287,090
184,120
21,280
14,760
11,300
3,200
- 100,000 200,000 300,000
BusinessandProf.Svcs.
Production,Construction,Extraction,andLogistics
EnginneringandArchitecture
ComputerandMathematics
Life,Physical,andSocialSciences
Farming,FishingandForestry
OccupationalEmploymentinKeyEconomicBaseSectors
• Among sectors typically targeted by employers considering New Mexico (i.e., economic base jobs), a number stand out as having strong potential because of the large quantities of talent.
• Our general business sectors –encompassing a broad range of occupations including service, sales, finance, operations, back office, and executive talent – benefit from employment of almost 300,000.
• Likewise, across manufacturing, natural resources, and logistics, employment is approaching 200,000.
15
Large talent pools in business and professional services, manufacturing, logistics, and extraction.
Source: U.S. Bureau of Labor Statistics.
Differentiating Factors:Workforce and Industry
36.0%
23.1%
2.7%
1.8%
1.4%
0.4%
38.6%
24.6%
1.8%
2.9%
0.8%
0.3%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
BusinessandProf.Svcs.
Production,Construction,Extraction,andLogistics
EnginneringandArchitecture
ComputerandMathematics
Life,Physical,andSocialSciences
Farming,FishingandForestry
Proport ionof Workforce in KeyEconomicBaseOccupational Sectors
NewMexico
U.S.Total
0.93
0.94
1.49
0.64
1.70
1.22
- 0.50 1.00 1.50 2.00
BusinessandProf.Svcs.
Production,Construction,Extraction,andLogistics
EnginneringandArchitecture
ComputerandMathematics
Life,Physical,andSocialSciences
Farming,FishingandForestry
Proport ionof Workforce in KeyEconomicBaseOccupational SectorsNM:U.S. Rat io (Locat ionQuotient)
• There are also sectors in which, while they are small in terms of absolute numbers employed, New Mexico shines because relative to typical employment levels elsewhere we have high concentrations of talent.
• Such niche sectors where New Mexico stands out include Engineering and the Sciences … largely as a result of our long history as a world-class research center. We are home to several federal and private sector research institutions.
• We have an even longer history – one that stretches across literally millennia – as a major agricultural center. That continues today.
16
High concentrations of talent in engineering, the sciences, and agriculture.
Source: U.S. Bureau of Labor Statistics.
Differentiating Factors:Innovation and Education
17
the Center for Advanced Research Computing, Cancer Center, New Mexico Engineering Research Institute, Center for High Technology Materials, Design Planning Assistance Center, and the Mind Research Network. UNM’s Health Science Center conducts innovative medical research that reaches every corner of the globe. It has particularly strong programs in a host of programs such as Business and Engineering.
The University of New Mexico is a comprehensive, Carnegie-designated Research 1 University and is the nation’s only flagship state university that is also a Hispanic Serving Institution (HSI). UNM is a place where cutting-edge research and creative endeavors flourish. Among the university’s outstanding research units are
UNM Center for High Technology Materials
agencies,andotheruniversitiestocontributeground-breakingresearchtothescientificcanonandtheworldofindustry,science,andengineering.
New Mexico Tech serves the state and beyond through education, research, and service, focused in science, technology, engineering, and mathematics. NMT has more than a dozen research divisions that work with private industry, government
National Radio Astronomy Observatory
cooperative extension offices located in each of New Mexico’s 33 counties, and 12 agriculture research and science centers. NMSU has developed an international track record in research and development in several disciplines, including animal and range science, biochemistry, molecular biology, genetics, computer science, energy, medical and health sciences, space and aerospace, water and other environmental issues.
New Mexico State University sits on a 900-acre campus and enrolls more than 15,000 students from 49 states and 89 foreign countries. NMSU serves a multi-cultural population of students and community members across the state at five campuses, a satellite learning center in Albuquerque,
NMSU Biochemistry, Molecular Biology, and Genetics Lab
Sandia National Laboratories is the nation’s premier science and engineering laboratory for national security and technology innovation. Sandia works with industry, other government agencies, and academic intuitions in the areas of nuclear weapons, defense systems and assessments, energy and climate, and global security. Research foundations include bioscience, computing and information science, electromagnetics, materials science, geoscience, nanotechnology, and materials science.
Los Alamos National Laboratories deliver science and technology to protect our nation and promote world stability. Through its technology transfer efforts, Los Alamos can implement user facility agreements that allow its partners and other entities to conduct research at many of its unique facilities. Areas of focus include energy, medical and biotechnology, high-energy physics, and advanced computing. The labs also participate in the New Mexico Small Business Assistance Program which helps businesses in New Mexico gain access to cutting-edge technologies and expertise to solve technical issues.
The Air Force Research Laboratory (AFRL) leads the way in the nation’s laser, optical, and space supremacy technologies. Two of its directorates – Directed Energy and Space Vehicles – are located in New Mexico at Kirtland Airforce Base. It’s Technology Engagement Office connects the private sector and academia with AFRL resources to develop new technology and create opportunities for industry growth. The Tech Engagement Team works with those interested in collaborating with the Lab to identify potential opportunities and to bring these to fruition.
National Center for Genome Resources (NCGR) is a nonprofit research institute that applies bioinformatics, software engineering and next-generation sequencing to solve the preeminent challenges of 21st century biology through collaborative research and services. It provides research partners in this field with experimental design assistance, data analysis, and data visualization.
The Mind Research Network (MRN) focuses on imaging technology and its emergence as an integral element of neuroscience investigation. MRN is dedicated to the discovery and advancement of clinical solutions for the prevention, diagnosis, and treatment of mental illness and other brain disorders. It is headquartered in Albuquerque and is a nonprofit organization consisting of an interdisciplinary association of scientists at universities, national labs, and research centers around the world.
Santa Fe Institute endeavors to understand and unify the underlying, shared patterns in complex physical, biological, social/economic, cultural, technological, and even possible astrobiological worlds.
White Sands Missile Range is the Department of Defense’s largest open-air test range, and provides Army, Navy, Air Force, and other customers (including the private sector) with high-quality services for experimentation, test, research, assessment, development, and training.
18
Differentiating Factors:Innovation and Education
New Mexico provides virtually unmatched opportunity for business and industry to collaborate with world class scientific and research institutions; and this has been a foundation of our innovation ecosystem in the state.
• Low cost of living, esp. housing
• Mild climate year-round
• Lack of congestion
• Diversity/multiculturalism
• Easy and affordable access to recreational/cultural amenities
19
Differentiating Factors:Quality of Life and Place and the Tangible Benefits to Employers
• Low turnover
• Low upward pressure on wages
• Higher productivity
• Strong ability to recruit talent from other markets
Favorable Quality of Place Factors Tangible Benefits to Employers
NewMexico’sfavorablequalityoflifedynamicsconferrealandtangiblebenefitsonemployersinthestate;helpingtomaximizeproductivity,minimizecost,andenhanceworkforcestability.
Differentiating Factors:Key Intangibles
Bylocatinghere,youoffertalentaplacethatisdifferentandunique,anddoingsocanhelp
youestablishacompetitiveadvantage
inattractionandretention.
Ourmoderatescalelendsitselftofostering
collaboration,innovation,
cooperation,andaccess.
Ourindustrysectorsarenotovercrowded
withlong-term,dominantemployers;sonewentrantsenjoyalevelplayingfieldwhencompetingfor
talent.
Thequalityoflifecharacteristicshereareonesthatcontributetohighproductivityandsustainingaworkforceandcoststructurethatisadvantageoustoyou
asacompany.
20
Elevate our dialogue with companies by not ignoring key intangibles with real strategic benefits. Data is fine, but executive level decision makers will definitely look at factors beyond simply quantitative data.
Differentiating Factors:Compensation Costs vs. Competing States
-25% -20% -15% -10% -5% 0% 5%
10% 15%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
ManagementOccupations
-20% -15% -10% -5% 0% 5%
10% 15%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
BusinessandFinancialOccupations
-15% -10% -5% 0% 5%
10% 15%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
OfficeandAdministrativeOccupations
-10% -5% 0% 5%
10% 15% 20%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
SalesOccupations
-20% -10% 0%
10% 20% 30%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
InformationTechnologyOccupations
-20% -15% -10% -5% 0% 5%
10% 15% 20% 25%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
Life,Physical,andSocialSciencesOccupations
-15% -10% -5% 0% 5%
10% 15% 20% 25%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
EngineeringandArchitectureOccupations
-20% -10% 0%
10% 20% 30%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
ConstructionandExtractionOccupations
-10% -5% 0% 5%
10% 15% 20%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
ManufacturingOccupations
-5%
0%
5%
10%
15%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
TransportationandLogisticsOccupations
-20% -10% 0%
10% 20% 30%
New
Mexico
Utah
Arizo
na
Texas
Oregon
Colorado
Washington
California
AgriculturalOccupations
Busine
ss/O
ffice
ScienceandTechno
logy
Indu
stria
land
Agricultural
New Mexico consistently has lower compensation costs than the U.S. overall. Further, our costs are typically lower than regional competitors, many of whom are well above national averages.
21Source: Analyses performed using Occupational Employment Survey data from the U.S. Bureau of Labor Statistics.
Feb. 28, 2018
A New Vision for Marketing New Mexico
1720LouisianaBlvd.NE,Suite312|Albuquerque,NM87110|505-247-8500|www.nmpartnership.com