2017 DEMA PREPAREDNESS SYMPOSIUM ECONOMIC RECOVERY · 2017 DEMA PREPAREDNESS SYMPOSIUM. ECONOMIC...
Transcript of 2017 DEMA PREPAREDNESS SYMPOSIUM ECONOMIC RECOVERY · 2017 DEMA PREPAREDNESS SYMPOSIUM. ECONOMIC...
2017 DEMA PREPAREDNESS SYMPOSIUM
ECONOMIC RECOVERYHow can we recover our economic base following a crisis and how can you support the community?
Alan MaguirePresidentThe Maguire Company• Chief Deputy, Office of the State Treasurer• Economic Advisor to the Arizona State Senate
• President, Arizona Economic Forum• Board of Directors, Greater Phoenix Chamber of Commerce
Ken BurnsChief Financial OfficerArizona Commerce Authority
Jim RoundsPresidentRounds Consulting Group• Senior Economist & Budget Analyst, Arizona State Joint Legislative Budget Committee• Senior Vice President, Elliott D. Pollack & Company
• Board of Directors, Arizona Association of Economic Developers
Agenda
• What Makes an Economy Tick?• What are the risks in Arizona?• DISCUSSION
• Risks, Recovery, Preparedness, and Resources• Summarize & Feedback• Adjourn
How a Dollar Moves:
• Value is added through the production process.
• A dollar is imported through outside sales activity. LT
• The dollar is spent within the local economy. ST
• Eventually leakage stops the process.
ROUNDS CONSULTING GROUP
The health of an economy is a function of its export, or
“base” industries.Long Term Damage Issue
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Without base industries, there is no means of supporting the
local market employees.
Short Term Damage Issue
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Base Industries:
• Manufacturing• Tourism• Advanced Business Services• Federal Government• Retirement• Others
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Base industries also tend to be more capital intensive and utilize more skilled labor (&
distribution).
(exceptions exist – tourism)
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In general, the larger urban communities will produce greater multipliers than the smaller rural areas.
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Example:
Within Arizona, the employment multiplier for truck
transportation activities is 2.2 in Maricopa County but is only 1.7 in Apache County. Why? Risk?
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Average Annual Wages v. Multiplier Effects
Industry
Average Annual Wages
Job Multiplier
Base IndustriesComputer & other electronic equipment $111,524 3.2Chemical manufacturing $105,340 4.7Federal government $78,820 1.6Machinery manufacturing $69,197 2.7Advanced business services $69,539 2.1
Local IndustriesEducational services $33,643 1.4Health care $33,491 1.4Retail sales stores $29,381 1.4Real estate $26,451 1.8
Source: Implan 2009ROUNDS CONSULTING GROUP
Businesses Need Stuff…
• Quality workforce,• Quality roads,• Competitive costs,• Consistent government,• etc. etc. etc.
www.roundsconsulting.comROUNDS CONSULTING GROUP
People need stuff…
• Jobs,• Amenities,• Affordable housing,• Available financing,• Better balance sheets,• etc. etc. etc.
ROUNDS CONSULTING GROUP www.roundsconsulting.com
• Tax Rates?• Econ Development Programs?• Workforce (quality/avail/cost)?• Transportation Infrastructure?• Balanced Budget?• Marketing?• Other Things?
www.roundsconsulting.com
What Matters? Interrelated…
ROUNDS CONSULTING GROUP
Natural Disasters
• Damaging Winds – Haboobs• Micro-Boost• Extreme Heat• Floods and Flash Floods• Lightning Storms• Wildfires• Earthquakes
Man-Made Disasters
• Nuclear Power Plant• Airplane Crash• Explosions• Power Outage• Terrorist Attack• Civil Unrest• Cyber Attack
Discussion Overview• What are the top five essentials for your Business’ Continuity?• How are each of these essentials effected by different emergencies / crisis?• Who / what can you rely on to supply (backup) each of your top essentials
for Business Continuity?• What physical alternatives do you have, if your operation’s location is
unreachable or completely inoperative?• What are the impacts of your business not operating?• How can your business assist other businesses in the area to continue to
operate / recover? Individuals?• What resources are you aware of to assist your business following a crisis /
disaster?
What are the top five essentials for your Business’ Continuity?
What can you absolutely NOT operate without?
Are there things you can do without for 1 day, 3 days, 1 week, 2 weeks?, but not longer?
How are each of these essentials affected by different emergencies / crisis?
Consider fire, flood, wind damage, cyber attack, other.Consider urban, suburban or rural locations.
Who / what can you rely on to supply (backup) each of your top essentials for Business Continuity?
Which essentials can / have you prepared for in advance?
Which essentials do you have an alternative source? If so, what is the source?
What physical alternatives do you have, if your operation’s location is unreachable or completely inoperative?
Can your business operate remotely? For ALL functions? Some functions? Not at all?
Consider access to Suppliers, Customers, Employees.
What are the impacts of your business not operating?
Consider Customers, Suppliers, Employees, Others.
How can your business assist other businesses in the area to continue to operate / recover? Individuals?
What resources are you aware of to assist your business following a crisis / disaster?
Consider Local, State, Federal, Public and Private.
Resources for Developing Recovery Strategies
https://www.ready.gov/business/implementation/continuity
https://www.ready.gov/business-continuity-planning-suite
https://www.drii.org/educationProfessional Practices for Business Continuity ProfessionalsDRI International (non-profit business continuity education and certification body)