about tonight’s presenters - city of richmond, · pdf fileabout tonight’s...
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About Tonight’s Presenters
Ben Wright, CEO Atlas Advertising
Ben Wright is one of the foremost experts in investment promotion and marketing, with over 18 years of experience, working primarily in North America. In the ten years since he started U.S. based Atlas Advertising, the company has grown to serve nearly 70 different investment promotion clients. Ben is a graduate of Stanford investment promotion clients. Ben is a graduate of Stanford University in California with a degree in economics, with emphasis on urban studies.
About Tonight’s Presenters
Daphne Maxwell Reid, New Millennium Studios
For the past 14 years, Daphne has been acting Chief Operating Officer and has handled the business affairs and finances of New Millennium Studios and its various subsidiary companies, and serves as a Producer on various projects. Presently serving on the following boards, her involvement in the community at large, rounds following boards, her involvement in the community at large, rounds out a full schedule; a member of the Board of Visitors of Virginia State University, Petersburg Library Foundation, Richmond Future Board, Richmond Forum Board and VA For The Arts Board, and the Petersburg Area Art League.
About Our Hosts
The City of Richmond:
Department of Economic & Community Development
Mission Statement
Encourage long term growth and development of Richmond’s job base and labor force. Cultivate a sustainable and diversified local economic base that:labor force. Cultivate a sustainable and diversified local economic base that:
- affords access to opportunity for all Richmond residents;
- fosters viable mixed-income residential neighborhoods;
- develops and supports Richmond’s tax revenue base; and
- maximizes the city’s assets and advantages without compromising the health of neighborhoods and residents.
About Our Sponsors
The Metropolitan Business League:
Mission Statement
To promote economic prosperity in Virginia through leadership, education, training, and advocacy for small, minority, and women owned businesses.
About Our Sponsors
The Greater Richmond Chamber of Commerce
Mission Statement
Since 1867, the Greater Richmond Chamber has taken the lead to
enhance and institute change in the Richmond Region, making the region an ideal location for businesses to prosper. an ideal location for businesses to prosper.
The Chamber, a not-for-profit business membership association with more than 1,200 members and a professional staff of 22, is a catalyst for business development and the voice of business in Greater Richmond.
About Our Sponsors
The Greater Richmond Partnership
Mission Statement
To help grow the Greater Richmond economy through the attraction of high quality jobs and new capital investment, the retention of existing businesses, and the continued improvement businesses, and the continued improvement of the region’s business climate.
About Our Sponsors
Venture Richmond
Mission Statement
Venture Richmond engages business and community leaders in partnering with the City to enhance the vitality of the community, particularly downtown, through economic development, marketing, promotion, advocacy and through economic development, marketing, promotion, advocacy and events.
About Our Local Creative Partners
Terry Stroud, COO, In Your Ear
Terry is a long time Richmonder and attended The University of
Richmond. After college, he became co-owner of a film production
company that shot award winning broadcast campaigns and
documentary films for such clients as Virginia Tourism and Care
International.
Tim Dowdle, Executive Producer, Dreams Factory
Tim is the Executive Producer for Dreams Factory and oversees the day-
to-day operations of the company. He has over fifteen years experience
in producing content for TV, radio and web. Tim is proficient in the
supervision of editorial, compositing, graphics, Lustre color correction
and online finishing. When not working, he spends time with his 120
pound Bernese mountain dog, who demands all of Tim's remaining
attention.
Opening RemarksOpening Remarks
ECD works to drive the long term growth and
development of Richmond’s job base and labor force.
Tonight’s event is a continuation of a program the
department started over a year ago, aimed at enhancing
the City’s economic and community development efforts.
The work that you will see tonight is the result of a
collaborative effort between the City Economic and
Community Development team, local companies New Community Development team, local companies New
Millennium Studios, In Your Ear, Dreams Factory, and
economic development specialist firm Atlas Advertising.
Tonight is about showing you what we have learned
in the research phase, the foundation of our work. in the research phase, the foundation of our work.
It is also about setting the stage to move forward.
What you will see next is in January, as we roll out the
marketing elements, economic development brand, website,
and two year plan for economic and community
development marketing success.
We expect this success to directly impact the recruitment,
retention, and expansion of companies in Richmond.
Before we started the research, we knew that
Richmonders were passionate about Richmond.
This passion inspired this event.
We will have time at the end for questions. We will have time at the end for questions.
The Local View: Richmond Business Leader Interview ResultsInterview Results
Why these stakeholders?
• Large employers
• Influential small and medium sized businesses
• Economic development leaders
• Leaders in promoting Richmond today• Leaders in promoting Richmond today
The Questions We Focused On
• Why do companies choose Richmond?
• What makes Richmond unique as a business location?
• How do you think the world views Richmond?
• Why did you choose the city over the suburbs as a location for your
business?
• What are the trends in Richmond that business leaders should take note of?
• What can the city government do to serve you better?
Why Companies Interviewed Originally Chose Richmond as a Location
“Workforce selection is easier here / larger talent pool”
“The difference in pay (from other markets)”
“Virginia has a favorable state historic tax credit law and there“Virginia has a favorable state historic tax credit law and thereis/was/are large potential inventory of historic, vacant buildings”
“Good qualified people in this market”
“Virginia laws are more business-friendly than those in D.C.”
“What makes Richmond unique as a business location for your business?”
Culture/ Lifestyle
Talent
Great talent Vitality of
cultureArt and EngineeringSchools
Brand Center/ Creative Side
Quality of
Technology
Balance of old and new
Lifestyle
Physical location
Natural amenities
Two hours from everything
Well informed and engaged community
Creative SideQuality of
Lifestyle
Chemistry of bigand small
“If you could say one thing to sell businesses evaluating Richmond, what would it be?”
“The City has a new/reborn energy”
“Potential”
“Richmond has a huge IT workforce”
“Virginia is a business-friendly state in a city that offers some “Southern charm with an edge”
“[Richmond’s] Cost profile (as it relates to living, doing business and the ability to build equity)”
“Young/innovative people ready to get to work.”
“Great location geographically”
“Cost of doing business is affordable”
“If you could say one thing to sell businesses evaluating Richmond, what would it be?”
“Logistics: Virginia port authority equals bigger ships and more direct routes. Great interstates, railroads of the east coast.”
“Business-friendly state laws, good historic tax credit laws, good stock of vacant historic buildings, City’s partial abatement of RE taxes for renovated buildings”
“VCU design school”
“Quality of life”
“What does a location in the city offer that is better than what a location in the suburbs has to offer?”
“Authentic character, sense of place”
“Younger demographic that sees Richmond in a different light”Richmond in a different light”
“Proximity to clients”
“Uniqueness to history – the suburbs could be anywhere. I don’t want to work in another ‘office park’”
“Access to capital”
“Central location”
“Atmosphere”“Access to amenities”
“Access to skilled workers”
“When other industry leaders visit Richmond for the first time, what is their perception?”
“Amazing potential in our city that Richmonders are oblivious to”
“It was the difference between not having a car or having a car, not having a yard or having “It was the difference between not having a car or having a car, not having a yard or having a yard (compared to NYC)”
“The ability to breathe”
“Less pressured life”
“Welcoming attitude”
“Underperforming city with poor leadership”
“In your opinion, what aspects of Richmond are well known nationally or globally?”
“Civil war/Capital of the Confederacy”
“Murder capital of the U.S.”
“VCU going to NCAA tournament” “VCU going to NCAA tournament”
“Proximity to D.C.”“Medical School”
“Don’t know Richmond . . .”
“What aspects of Richmond’s past are relevant to its future?”
“A city that has been sticking it to the man for 400 years but a city that has reinvented itself again and again and again”
“Grit and perseverance. It has always been focused on the potential of what things can be.”“Grit and perseverance. It has always been focused on the potential of what things can be.”
“Rebellious, creative nature”
“Microcosm of America”
“Entrepreneurship and community”
“Inspire the local minority youth. Use the history to inspire, not bum you out when you look back.”
“Few are . . .”
“What are Richmond’s weaknesses andchallenges as a business location?” (product/place)
“No identifiers from the highway systems that the city is here. Most people pass by and don’t realize they’ve been in the city.”
“Airport not being a hub city (direct flights – not facility)”“Airport not being a hub city (direct flights – not facility)”
“Keeping talent”
“Richmond’s high poverty rate (demographics are used by potential employers and retailers in their decision making process – we rank poorly)”
“What are Richmond’s weaknesses and challenges as a business location?” (government/leadership)
“It’s easier to go out in the suburbs and develop a green field (for example) than it is to go downtown.”
“The city is not marketing itself – outsiders don’t understand Richmond”understand Richmond”
“City government has a lot of red tape involved and you have to know someone to be able to get things accomplished fast and efficiently”
“Confusion over city vs. Greater Richmond”
“Too bureaucratic”
“Disproportionate influence of “activists” not interested in city’s economic viability”
“Who are the great companies and institutions in Richmond that are succeeding?”
“Why are they succeeding in Richmond?”
“They are succeeding because they are well-run companies working in a
business friendly state. I worry, however, that we have done a poor job of
attracting businesses in growth industries and that our local government
doesn’t seem to have a plan to do so.”
“The successful companies are all big thinkers and community minded:
they understand they are part of a global community and seek to supply it’s
needs, and more importantly, a local community and seek to support the
needs of their employees and the community they live in.”
“Lead”
“Work on customer service”
“Adopt and enforce a more business friendly attitude”
“Have informed staff regarding business needs”
“What could the city government do to serve you and your business better?”
“Have informed staff regarding business needs”
“The City should initiate the studies they pay to have done instead of letting them sit on the shelf”
“Listen to small and large companies alike”
“Make small business programs more available and raise awareness regarding them”
The Outside View: Richmond Site Selector Survey ResultsRichmond Site Selector Survey Results
Respondent Companies
Respondent Industries
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0.0%
5.0%
10.0%
15.0%
Influence of the Respondents
13
Averaged 13 deals over
the past 2 years 187,000
257
Average of 257 jobs
per deal
187,000
Total of 187,000 jobs influenced
Why site selectors?
• Represent nearly all large expansions and relocations
• Are limited in number: roughly 350 active site selectors nationally
• Are accessible to communities that want to have relationships
with them
The Questions We Focused On
• What drives relocation decisions today among your clients?
• What communities are typically making the cut?
• Is Richmond on the radar nationally?
• How well does the Richmond region compete?
• How do site selectors perceive Richmond? Other cities?
2006: Relocation Activity Driven by Growth, Labor, Cost Savings & Natural Disaster
1. Growth – businesses expanding
2. Labor – higher skills for lower costs
3. Cost – lower total operating costs3. Cost – lower total operating costs
4. Disaster recovery – move business away from markets with high natural
disaster incidence
Note: Relocation activity was on the upswing
2011: Workforce, Cost, Access to Transportation, Business Climate, and Incentives Most Important Factors
Factor % Important
Ability to recruit workforce 96%
Low overall cost of doing business 79%
Access to transportation infrastructure (logistics) 79%
Pro-business tax/regulatory climate 76%
Access to customers (large markets) 72%
Financial incentives from communities 70%
Quality or fit of specific real estate 67%
Access to creative/technical/scientific workforce 63%
Access to national or international air service 61%
Access to senior management talent 52%
Quality of life for employees/management 46%
Proximity to a tier 1 university 35%
A vibrant downtown 32%
Access to cultural amenities 29%
Of Top Factors, Richmond/Virginia is Perceived to Compete Well on Cost of Doing Business, Pro-business tax/regulatory Climate, and on Incentives From the State
Factors Strength Neutral Weakness
Ability to recruit workforceX
Low overall cost of doing business
Xbusiness
Access to transportation infrastructure (logistics)
X
Pro-business tax/regulatory climate
X
Access to customers (large markets)
X
Financial incentives from communities
X
Within the Mid Atlantic Region, Virginia Communities Consistently Make the Cut
When We Say “Lower Cost Alternative to Large Northeastern US Cities”, Site Selectors Think:
When We Say “Ability to Recruit Creative Talent in the Mid Atlantic region”, Site Selectors Think:
When We Say “Outstanding Logistics Access to Large Northeastern U.S. Markets”, Site Selectors Think:
When We Say “Access to Senior Management Talent in the Mid Atlantic Region”, Site Selectors Think:
When We Say “Ability to Recruit Life Sciences Workers in the Mid Atlantic Region”, Site Selectors Think:
When We Say “Aggressive Financial Incentives for Expanding or Relocating Companies”, Site Selectors Think:
Richmond Has a Wide Variety of Strengths, While Other Cities Have Clear Positioning
Richmond Has Been Considered by Half of Site Selectors Interviewed, But Has Only Been Successful in Landing a Deal with 19%
Yes
55%
No
45%
Yes
19%
No55%
“Have you ever managed a relocation that considered Richmond, VA?”
No
81%
“Have you ever managed a relocation that chose Richmond, VA?”
Perceived High Labor Cost, Smaller Labor Market, and Other Issues Have Cost it Deals
“Richmond did not have the market clients sought. [I] Think Richmond is a fine city
and a great location--it will hit with us.”
“None of the attributes that client looks for in location”
“Lack of affordable labor”“Lack of affordable labor”
“Labor too expensive; real estate not appropriate and more expensive.”
“The talent/labor available is assumed to be from tobacco industries that have been long established and have developed a sluggish working culture.”
“Labor costs were higher than alternatives”
“More costly; labor pool not as deep; meager incentives”
“Perception of proximity to unions”
Richmond’s HQ and Manufacturing Strengths Have Won it Deals
“Had a large ready to go site and understood the industry.”
“Strong alternative to headquarters in NYC.”
“Good international access.”
“Strong manufacturing environment.”
“It was in the late 80's - a cogeneration project for DuPont. It was not about
Richmond, it was about Dominion's need and the DuPont site”
Respondents That Know Richmond HaveHad Limited Experience With the City’s ED
“25 years ago—so-so experience”
“Last 3 months: responsive”
“On mailing lists, currently get emails but have
not had personal contact for quite a few years”not had personal contact for quite a few years”
“Ten Years”
“Good”
“Met and interacted at CoreNet events”
“3 yrs ago”
Summary of Findings
Perceptions of Richmond Locally Versus Perceptions of Richmond by Those Outside
• Locals value aspects of the cultural/historical/natural amenities present in
Richmond.
• Companies outside value the cost advantages and business friendly
environment present in Virginia.
Perceptions of Richmond Locally Versus Perceptions of Richmond by Those Outside
• Local leaders value Richmond’s talent and see Richmond as a hub for
creativity and innovation.
•Outside companies see the same thing.
•However, there are some outside who view the workforce cost as higher than
comparison cities, and see Richmond as not as competitive for the Life
Sciences industry
Perceptions of Richmond Locally Versus Perceptions of Richmond by Those Outside
• Locally, there is some frustration with city services in economic development,
with development approvals, with politics, and with poverty
• Outside, there is little knowledge of any of this.
Perceptions of Richmond Locally Versus Perceptions of Richmond by Those Outside
•The business community locally can demonstrate a real trend toward
companies and people moving into the city from the suburbs.
•From the outside, Richmond is both the city and the suburbs.
•To compete and win globally, the city and the suburbs must work together to
solve some fundamental issues of regional importance, such as labor cost,
labor availability, suitable real estate options, non-hub airport, and lack of
familiarity with the community.
Richmond’s OpportunitiesRichmond’s Opportunities
Opportunities to focus and create a sustainable position in the market
• Focus on industries such as financial and professional services that
demand high-end workforce at a lower cost than large Northeastern cities
• Focus on cost advantages and Virginia’s business friendly programs
relative to other Mid-Atlantic states relative to other Mid-Atlantic states
• Continue to become the professional and corporate hub for the region, and
mitigate concerns companies may have around real estate and permitting
when moving from the suburbs
Opportunities for Communications
• Become the promoter of urban business location for the region, touting
population growth, business success, and how the city has solved issues
related to real estate for business
• Orient this campaign toward local businesses, and stay closely aligned with • Orient this campaign toward local businesses, and stay closely aligned with
the RVA Creates branding
Opportunities for Communications
• Work with partners who promote the region and state nationally and
internationally to financial/professional services firms, regional/corporate
headquarters locations, and life sciences/medical firms that value alignment with
VCU
Summary: What is Relevant and Different About Richmond to Business?
• Its educated, creative and professional workforce
• Its relative overall cost advantages compared to large
Northeastern U.S. cities
• Its location in the state of Virginia, which is pro-business, stable, and active
in the economic development incentives game
• The urban environment that attracts, educates, and retains cutting edge,
creative and professional talent
So What’s Next?So What’s Next?
About Tonight’s Presenters
Lee Downey,
Director of The Economic and Community Development Office
Lee Downey has twenty-plus years of experience in urban planning and economic development spanning both the public and private sector. Since 2008, Downey served as the vice president of business development for McKinney and Company in Ashland, where he developed and monitored all marketing and and Company in Ashland, where he developed and monitored all marketing and business development plans and strategies for the full-service, multi-disciplined architectural and engineering firm. He previously held positions of Marketing Manager for McGuireWoods, LLP, and business development project manager for Virginia Economic Development Partnership (VEDP). During his tenure at VEDP, he managed a variety of business development projects throughout the Commonwealth, creating over 4,000 new jobs and $375 million in new investment for the state, while saving 2,290 jobs from relocating outside Virginia.
The City is Developing Foundational Communications Elements to Support Economic Development
•Developing a differentiated, clear business brand (January)
• Developing a world class economic development website (January)
• Launching supporting print, video, and digital communications for local and
national business audiences (January – March)
The City Is Partner With Various Local and Regional Partners to Get the Word out About Richmond
• Launch external campaigns targeted at Financial/Professional/Creative
services firms that are expanding or relocating, using direct and social media
tactics (February)
• Develop monthly update presentations geared to give the nation and the • Develop monthly update presentations geared to give the nation and the
world the latest happenings in Richmond (February)
• Attending trade shows geared toward site selectors (January) and
Biotechnology (April)
• Launch a search engine marketing campaign to drive targeted traffic to the
website (January)
•Developing awareness and informational videos targeted at key industries
(January – February)
The City Will Also Reach Out Locally Using a Variety of Approaches
• Develop a business advisory council of local employers (Spring)
• Establish Mayor’s ambassador program (Q4 2012)
• Actively participate on key committees with partner organizations (Ongoing)
• Manage and respond to local needs of business, and report back to the community
and partners using the Executive Pulse system (Ongoing)
• Conduct quarterly reviews with partner organizations about expansion and retention
opportunities and results (Ongoing)
• Conduct annual events such as this one to report out on local business issues and
successes (Fall)
• Deliver quarterly results by email to partners and interested members of the public
regarding business attraction, retention, revitalization, and other projects (Quarterly)
If you are interested in joining us and want notifications of our activities,
please drop your business card at the Richmond Business First table
We appreciate you being here in this collaborative effort
Contact Information
Daphne Maxwell Reid, New Millennium Studios
1 New Millennium Drive
Petersburg, VA 23805
t: 804 957 4200
www.nm-studios.com
Ben Wright, Atlas Advertising
2601 Blake Street, Suite 301
Denver, CO 80205
t: 303.292.3300 x 210
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