slideshare economic development overview 2012
TRANSCRIPT
Economic Development 101
Improving the quality of life of the Greater Owensboro regionImproving the quality of life of the Greater Owensboro region
The EDC fulfills its mission through the following activities:Create an environment for economic
investment, business formation, company location, and talent
Primary point of contact for existing companies, new business prospects, and startup companies
Strategic positioning for long-term global competitiveness through infrastructure, a competitive workforce, and quality of place
GO-EDC 2011-2012
City of Owensboro (EDC, Skills, Inc., DOI)
$203,664
Daviess County Fiscal Court(EDC, Skills, Inc., DOI)
$178,100
Investment 2020(Private Investment)
$197,200
Commonwealth of Kentucky(KSTC- IN program)
$75,000
Total GO-EDC Budget
$683,764
Five employees
Coordinated multi-dimensional strategy (industrial, startup, downtown, workforce development-OwensboroWorks.com)
Fully funded innovation center program
Regional partnerships with Hancock, Ohio and northwest Kentucky counties and Indiana
Milestones 2006-2012• 2006
• Commerce Center • Life Science Strategy • Comprehensive ED
Strategy• Revival of Regional Alliance
for Education• 2007
• OwensboroWorks.com replaces Skills, Inc.
• DOI folds into EDC as Downtown Dev. Corp.
• Innovation Network- SBDC• WKU-O MOU
• 2008• Placemaking Strategy-
Downtown Master Plan• 2009
• Kentucky United• Emerge Partnership- LO• Hancock County MOU
• 2010• Centre for Business and
Research opens• 2011
• Community Campus• 2012
• eMerging Ventures- ICC
Results
GO-EDC 2005-2006
• 8 state projects• $12 million investment• No Innovation Network • Minimal activity in
downtown Owensboro
GO-EDC 2011-2012
• 14 state projects• $60 million investment• ICC program spawned
over 20 new firms with over $50 million in new investments and 70 new jobs with average wage of over $75,000
• Downtown private investment reached $75 million in 2012, nearly matching original $79 million public investment
Economic Development: Approaches
Community Strategy…
• Jobs Strategy• Existing Business
Retention• New Business Targets• Growing New
Companies- startups
• Product Development• Infrastructure• Placemaking- Quality of
Life• Workforce Development/
Education
Job Growth: 1990-2010
Source: Bureau of Economic Analysis; Owensboro peer region benchmarking done initially in 1998 by Paul Coomes, University of Louisville. Peers are regions within 30,00 of Owensboro MSA population in 1998, not located on an interstate, no public university, not a state capital region, not within 60 miles of major city of 1 million or more.
2012 Rank Among Small Cities
1 Odessa, TX2 Midland, TX3 Columbus, IN4 Lafayette, LA5 San Angelo, TX6 Blacksburg-Christiansburg-Radford, VA7 Casper, WY8 Williamsport, PA9 Glens Falls, NY
10 Lubbock, TX11 Laredo, TX12 Columbia, MO13 Cumberland, MD-WV14 Gainesville, GA15 Portsmouth, NH-ME NECTA16 Holland-Grand Haven, MI17 Bismarck, ND18 Houma-Bayou Cane-Thibodaux, LA19 State College, PA20 Fargo, ND-MN21 Ocean City, NJ
22Owensboro, KY23 Charlottesville, VA24 Tyler, TX25 Cheyenne, WY
Best Cities for Jobs 2012
70 Clarksville, TN-KY93 Bowling Green, KY
111 Elizabethtown, KY
Source: NewGeography.com
Manufacturing Jobs: 1990-2010
Source: Bureau of Economic Analysis; Owensboro peer region benchmarking done initially in 1998 by Paul Coomes, University of Louisville. Peers are regions within 30,00 of Owensboro MSA population in 1998, not located on an interstate, no public university, not a state capital region, not within 60 miles of major city of 1 million or more
Funding and Performance
Source: Funding data from GO-EDC survey of peer region economic development organizations; jobs date from Bureau of Labor Statistics and Bureau of Economic Analysis
Regional Demographics
Owensboro Region
Kentucky US
Per Capita Personal Income
$33,160 $33,667 $39,937
2000-2010 PCPI Growth Rate
3.1% 2.9% 2.8%
Real GDP Per Capita
$32,774 $33,273 $42,346
Source: US Bureau of Economic Analysis
Per Capita Income Growth
In 2010 Owensboro had a per capita personal income of $33,160. This PCPI was 83 percent of the national average, $39,937. In 2000 the PCPI of Owensboro was $24,540. The 2000-2010 average annual growth rate was 3.1%. The average annual growth rate for the nation was 2.8%.
Source: U.S. Bureau of Economic Analysis
Labor Availability
Labor Market Population
481,263
Labor Force (20 mile radius)
255,128
Owensboro MSA Population
112,266
Owensboro MSALabor Force
53,799
Age Distribution (20-44)
32%
Average Hourly Manufacturing Wage
$16.60
Industries that drive the regional economy
Industry LQ
Gas Pipeline Transportation 31
Aluminum/ Metal Production 14
Food Manufacturing 2
Finance/ Mortgage Processing 1.7
Transportation Equipment Production 1.5
Health Care 1.3
Transportation and Warehousing 1.2
LQ or Location Quotient is a ratio to measure the concentration of local employment compared to national employment in an industry cluster to determine the if industries are basic or non-basic industries. An LQ of 1 or higher indicates a greater concentration of jobs in any given region compared to the nation and therefore a basic industry. According to economic base analysis theory, jobs in basic industries drive the flow of outside wealth into a region and provide greater economic development than jobs in non-basic industries.
Top Workforce ClustersOccupation Employment Mean
HourlyMean
AnnualLQ Future
Growth
Milling and Planing Machine Setters, Metal and Plastic
90 $14.15 $29,430 9.48 -21.10%
Tool Grinders, Filers, and Sharpeners
50 $20.77 $43,210 8.42 -15.70%
Rolling Machine Setters, Operators, Metal and Plastic
340 $19.82 $41,220 8.42 -11.80%
Heat Treating Equipment Setters, Operators, Metal and Plastic
60 $15.76 $32,780 7.01 -14.80%
Industrial Machine Mechanics
550 $22.76 $47,340 5.42 9%
Source: US Bureau of Labor Statistics
Regional Occupational Concentrations Ranked in Top 5 in the Nation!
Production OccupationsLQ Future Growth
Metal, Plastic Industry Machine Setters 5.48 -12.20%
Metal and Plastic Workers 5.06 -25.10%
Welders, Cutters, Brazers 3.87 5.10%
Helpers, Production Workers 2.88 -0.5%
Packaging Machine Operators 2.5 -5.4%
Inspectors, Samplers, Weighers 2.25 -7%
First-line Supervisors, Managers 2.23 -4.48%
Industrial Production Managers 2.33 -5.8%
Bakers 2.35 10.5%
Electricians 1.44 7.4%
Source: US Bureau of Labor Statistics
Health Care OccupationsLQ Future Growth
Surgical Technologists 3.70 24.4%
Physical Therapy Assistants 2.24 16.7%
Radiology Technicians 1.99 15%
Pharmacy Technicians 1.71 28.9%
Nursing Aides, Orderlies 1.69 18.2%
Registered Nurses 1.65 23.5%
Other Nurses 1.21 14%
Lab Technologists 1.16 15%
Physicians Assistants 1.15 27%
Medical Records and Health IT 1.15 17.8%
Source: US Bureau of Labor Statistics
Professional Service Occupations
LQ Future Growth
Loan Officers 1.8 11.4%
Purchasing Agents 1.25 -8.6%
Cost Estimators 1.01 18.5%
Human Resource Managers 1.81 12.5%
Stock Clerks 1.09 -7.6%
Shipping, Receiving Clerks 1.09 3.6%
Source: US Bureau of Labor Statistics
Economic Development 101
Business Attraction: Strengths• River• Location• Low Cost Energy• Low Tax Burden• Diversity of Economic Base
• Manufacturing Retention• Enhanced Transportation
• Colleges and Universities
Business Attraction: ChallengesEPA Non Attainment Air Quality Region
Right to Work StateInterstate Access (I-65 and I-75)
Commercial Air Service
Workforce Skill Gap (production workers to technicians)
New Business Targets
Cluster Analysis using Location Quotients• Advanced Manufacturing
• Food, Automotive, Metals
• Distribution/ Logistics• Back Office/ Call
Centers
Kentucky United• Joint state-regional marketing effort• Kentucky Cabinet for Economic Development• Local EDO’s (GO-EDC)• Prospecting trips (New York, Detroit, California, Northeast)
• Site selector luncheons (Atlanta, Chicago, Indianapolis, New York)
Community Marketing
Infrastructure
• Certified Mega Site on River in Hancock County
• Riverport- Panama Canal Changes
• Cheaper-Faster Broadband
• Certified Work Ready Community
• Commercial Air Service
Higher Education Partnerships• Research Programs
• U of L/ Nucleus• WKU-O/CBR
• Degree Programs• WKU-O Campus• OwensboroU
• High School• Discover College• Community Campus
• Workforce Development• Workforce Solutions
• P-16 Alliance for Education
Growing Companies• Innovation/ Commercialization/ High Tech
• High Tech Business Attraction• Plant Therapeutics• Foods• Bio-Medical
• Centre for Business and Research• Seed Capital
CBR Tenants
• Hollison Technologies
• Adult Immunization Management
• WKU- Plant Biotech Center
• WKU- Food Science Research Program
• GuitarGoods.com• Brite Lite Logos• Dalisha’s Desserts• Craig O’Bryan
Graphics• Infinity Digital Media• Higher Ground
Consulting• KBP Analytics• Kentucky BioAlliance
Existing Business Retention
• Aluminum • Legacy Manufacturing• Energy Intensive Industries
Threats
New Investments, expansions, & retention: 4,864 jobs since 2008
ED 101: Economic GardeningStrategy Pros Cons Owensoboro
Economic Gardening
Focusing on business startups, entrepreneurs, and nurturing growth of stage II companies using data analysis, seed capital, and business incubators
Most cost effective strategy
Focus on retaining and growing existing companies and gazelle companies (3/4ths of jobs)
Long-term stability
Incremental gains, not headline-based, therefore, politically difficult to sell because it is slow growth and long-term
Requires a different skill set
eMerging Ventures Center (state funded)
GO-EDC Industry Advantage- existing industry program
Centre for Business and Research
ED 101: Workforce
Incentive ProcessKentucky Business Investment Program (KBI)- locally requires the local jurisdiction to abate 1% of occupational taxes for the 10-year term of the incentive on projects creating 10 or more jobs. State abates 3% of Kentucky payroll taxes on the project.
Other Types of Incentives or Shared Investments
•Industrial Revenue Bonds (IRB)•Build-to-Suit/Leaseback•Tax Increment Financing (TIF)•Seed capital funding- Emerging Ventures Seed Fund
ED 101: PlacemakingStrategy Pros Cons Owensoboro
Placemaking
Focus on developing a region that is attractive to highly educated people.
Investment always follows talent
Mobile people in global economy
Qualitative rather than quantitative
Encourages regions to make quality of place investments
Supported by data
Indirect approach based on correlations
Not a standalone program, compliments 1st and 2nd approaches
Downtown Placemaking initiative
Carnegie Village development around Centre for Business and Research
Support for the arts
Placemaking
Place, environment, amenities, and livability are the key factor for people in today’s world when choosing a place to live.
Talent, investment, and businesses are all attracted to quality places.
Placemaking is the tool used by communities and regions to capitalize on local assets to create public spaces that promote health, happiness, and propserity
Owensboro’s Place Strategy
Downtown
• Veterans Blvd• Marina- West Executive
Inn Site to English Park• Bluegrass Center• Carnegie Village• East Bridge District
Around Town
• OMHS Parrish Campus• OMHS- New Campus• Moreland Park- Rec-Plex• By-Pass Extension
Corridor- US 60 East
EDC Operating Budget2009-2010 Budget
Income
City of Owensboro $181,043
Daviess County Fiscal Court $155,000
Commonwealth of Kentucky- Innovation Center $66,000
Investment 2020- Private Companies $187,000
Total $589,043
Expenses
Salary and Staff Expenses $391,823
Marketing and Recruitment $52,428
Existing Industry Support $19,000
Operational Expenses (Rent, Office, Insurance) $124,792
Total $589,043