Best Practices in Business Retention

Economic Developm

ent

Best Practices in Business Retention

TVA Perspective

Business Case for Retention

Award Winning Models

What’s Next

Economic Developm

entTVA Perspective

Economic Developm

entTVA Perspective

•Nation’s largest public power producer

•Over $9 billion in 2006 revenues

•158 distributors, 62 directly served customers

•221 counties in seven states, serving 8.7 million people

•99.999% reliability for seven straight years

Economic Developm

entTVA Mission

Energy – provide affordable, reliable power

Environment - provide environmental stewardship and integrated river management

Economic Development – promote sustainable development

Economic Developm

entTVA Perspective

Economic Development is at the core of TVA’s mission. TVA works together with distributor customers, communities, and state and regional economic development partners to:

attract new companies

retain and grow existing businesses

help communities prepare for growth

Economic Developm

entTVA Perspective

Jobs and capital investment are our bottom line

Industrial recruitment

Business Retention

Technical services

Community Development

Entrepreneurship

Retail development and recruitment

Financial assistance

Economic Developm

ent

The Business Case

Award Winning Models

Economic Developm

entThe Business Case

Fortune 500 Top 25 Sectors – 1982

1. Manufacturing 11

2. Energy 13

3. Communications 1

Fortune 500 Top 25 Sectors –

2007

1. Finance/Insurance 10

2. Manufacturing 5

3. Energy 4

4. Retail 2

5. Health 2

6. Communications 1

7. Technology Services 1

Economic Developm

entNational Manufacturing Trends

548,900 net jobs lost in the US in FY05• 5,330 net job loss in Valley

8,050 manufacturers lost in US in FY05

Shifting manufacturing sectors• Textiles, furniture, light assembly going offshore

Regional disparities occurringBureau of Labor Statistics 2005

Economic Developm

entTennessee Valley Trends

11,325 manufacturing facilities in the Valley

666,000+ manufacturing jobs in the Valley• 21.4% total employment • 32.7% of rural• 16.9% of urban

815,000 additional jobs from multiplier effect

$27.0 billion personal income

Economic Developm

ent

Recruitment Costs

$1,000 – $50,000 per job

Retention Costs

$200 – $4,000 per job

Source: US Department of Labor & Employment, 2006

Cost Benefit Analysis

Economic Developm

entNew Job Creation - Averages

Small Business, 10.0%

Expansions, 75.0%

Recruitment15%

Economic Developm

ent

Got Focused

Driven at the local level

Strong action plan

Got Prepared

Training

Researched Targets

Pre-determined follow up plans

Award Winning Models

Economic Developm

ent

Got Connected

Partnered with industry stakeholders

Learned from the best practices of others

Stayed “connected” to industry

Award Winning Models

Economic Developm

entAward Winning Models

Blane Canada, Ltd

Economic Developm

entAward Winning Models

Economic Developm

ent

Distributor and 2 rural, West Tennessee Counties

Two Unique Strategies Big Results

Success Breeds Success

2007 BREI Winner

Gibson EMC

Economic Developm

ent

New Economic Development Director No Existing Industry Program The Numbers Tell the Story

The Impact of One Call

2005 BREI Winner

0 to 60 in 30 Days

Economic Developm

ent

North Mississippi Industrial Development Association

50% Power Distributors - 50% TVA Industrial Recruitment Focus “So, tell me about your workforce…” 2006 Blane Canada, Ltd Award

NMIDA

Toyota General Electric Peterbilt

Economic Developm

ent

What’s Next?

Economic Developm

entWhat’s next at TVA?

Enhancing our company’s approach to retention Aligning internal resources Equipping distributors and communities Integrating current products and services Creating new products and services Incorporating good energy policy with retention Innovative Partnerships

Economic Developm

entWhat’s next?

Innovation An example: Automotive Research Alliance

Workforce Development and Education Expanding Entrepreneurship IEDC “Innovation Agenda”

Economic Developm

entWhat’s next for you?

Key Account Management? Website Enhancement? Partnerships with economic development? Rate consultation? Retention friendly policies? Industry support?

Economic Developm

ent

BREIBusiness Retention & Expansion

International

Annual Conference

Wichita, KS

June 2-8, 2008

www.brei.org

• www.TVAed.com

•State & local ED Partners

•EDA

•IEDC

•www.appanet.org

What’s next for you?

Thank you

Questions?Amy Bunton (615) 232-6442 abunton@tva.com