Governor’s Economic Development Marketing

Team July 15, 2015

LEARNING OBJECTIVES

EARLVILLE, IL CIRCA 2013

WHAT YOU DO MATTERS!

EARLVILLE, IL POP. 1,500

MARATHON ELECTRIC CO.

SAVED BY READING

IT’S ABOUT PEOPLE

WHERE ARE YOU GOING?

Commuting Patterns Slide

Source: US Census, Angeles Ortega

Source: US Census, Angeles Ortega

FOUR FORCES DRIVING TRENDS

TRENDS - WHAT DO YOU THINK?

1-3 years | 3-5 years | 5+ years

Social

Technological

Economic

Environmental

Political

THE FUTURE

SOCIAL TRENDS• Aging population• Increasing health concerns• Increasing fear of technology• Decreased trust in our institutions• Increasing concern regarding climate change

TECHNOLOGY• Exponential increase in power; decreasing cost • Digital everything – IoT (Internet of Things)• Connected –9 Billion people; 24x7

EXPONENTIAL RATE OF CHANGE

Source: Kahn Academy

THE GAP

Source: The Second Machine Age

WORKING for a NON-HUMAN?

• Dr. Watson I presume?• AI – now and in the future• HAL 9000 • Robot caregivers

ECONOMIC• Bifurcation of Society – knows & know-nots• Benefit of increase productivity goes to capital not

labor• Income inequality increases• Globalization expands

ENVIRONMENTAL• Climate change acknowledged as threat• Extreme weather increases• Natural gas replaces coal • Water becomes a global issue

POLITICAL • Tea Party Wins – US Capital moves to Wichita • Political power goes to 1% • Mistrust of government grows• Local government shrinks• Self-government expands

TEN TRENDS IMPACTING ECONOMIC DEVELOPMENT

WORK

More complex requiring high skill level

Fewer workers same output

30%of work done in home office

Work moves to the people

Meaningful work done globally competitively

TALENT

Talent drive location

Live first, work second

Zero-sum talent pool

Enormous demand for talent

Business demands education reinvention

EDUCATION/TRAINING

Knowledge vs. skills

Value of degree questioned

Those with degrees go back to school to learn skill

Education moves online

Collaborative learning

COMMUNICATION

Social Media used for personal communication

Discussion groups and email used for professional connections

Letter writing makes a comeback

TRANSPORTATIONConsumers shift to buy it local

Internet retailing creates demand for distribution centers - same day delivery

Electric vehicles off to a slow start but gaining

Self-driving vehicles on the horizon

Sharing economy gains traction

ENERGYInexpensive abundant natural gas shift location of chemical production

Increase concern for water resources

Electric generation shift from coal to gas

U.S. becomes exporter

FINANCE

Bank alternatives grow - Paypal, micro-loans, etc.

U.S. devalues its currency by 20%, China bails out Europe

Banks, re-capitalized, can now afford to foreclose on non-performing loans

Investment banks continue to block crowd funding of start-ups

TECHNOLOGY

Cloud computer and storage become the norm

Ubiquitous mobile computing

Cyberwar become a growing concern

Bio engineering grows

ENTERTAINMENT

Social Media max out limited by our discretionary time

Professional and amateur sporting events grow in demand

OTHERCulture influence shift from the U.S. to China and India

Relevance advertising becomes increasingly frightening

We become homogeneous in our thinking due to the information bubble

Possible Probable

2020

2025

2030

Preferred

THE CONE OF POSSIBILITIES

Now

CHANGEAdapt

• Linear

• Rearview Mirror

• Where we’ve been

• Dinosaur approach

• Victim of Change

Anticipate

• Exponential Rate of Change

• Trend Focused

• Skate where the puck is going

• Becoming Future Smart

• Choosing a future

THANK YOU!

Dean Whittaker

Whittaker Associates, Inc.

616-786-2500

dean@whittakerassociates.com

www.whittakerassociates.com