EconDev Challenges
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Transcript of EconDev Challenges
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Spring Breakfast Forum Tuesday, March 26, 2013
Mark Barbash Finance Fund
Looking ahead at the future of
Ohio’s Economy
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Finance Fund Assists SolarVision with Celina Renewable Energy Center
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Major Economic Shifts are Impacting Economic Development
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The recovery from this recession is taking longer than prior recessions
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We are not replacing jobs lost through the recession
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Employers have significantly increased their use of part time workers.
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0
20,000,000
40,000,000
60,000,000
80,000,000
Retirement Age WorkersTalent Pipeline
Workers
We are not replacing our retiring workers with our new workers
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The Internet is changing the way that everyone does business!
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Ohio and the Midwest are leading the nation in the Manufacturing Recovery
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Ohio’s Economy is Expected to continue to Expand in 2013…
2009
1994
2013
2015
2001 National GDP Ohio GDP
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Technology is changing Manufacturing, Service and Distribution
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And the Data Shows….
• Who are the largest employers in the community?
• Who do the largest employers buy from --- and sell to?
• What makes your community special? Why do people want to live in your community?
Economic Development is not about the “big deal”…it’s about knowing your community
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And the Data Shows…. Even in Attraction….workforce & infrastructure rank higher than incentives
What Matters Most: Site Selectors Most Important Criteria
1. State and Local Tax Structure
2. Transportation & Utility Infrastructure
3. Land/Building Prices & Supply
4. Ease of Permitting and Regulatory Process
5. Workforce Skills
6. Local economic development strategy
7. Legal Climate
8. Availability of Incentives
9. State Economic Development Strategy
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Understand the ROI of your Economic Development Program
• Communities should have a Cost / Benefit analysis for investment of time and resources and incentives
• Is your investment in economic development generating measurable benefits?
• Communities should understand … and take … informed risk
• Use incentives strategically and create local incentives that make sense for your community
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Property Taxes based upon Valuation
Sales Taxes based upon Sales Revenue
Income Taxes based upon Wages
Property Taxes based upon Property Values
Fees and Transfer Payments from other sources
The slower economic recovery is having an impact on local budgets
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State & Local budgets are lagging the recovery
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Regional Collaboration is the New Competition
• Companies are looking for your ability to bring a wide variety of resources to the table
• Regional collaboration: What is your community’s role in the region?
• Expand your partnership to include workforce, land use, transportation, philanthropic, hospitals, permitting
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Business and Industry think regional, state and international supply chain
The Solar Supply Chain in Ohio; WIRENET, 2011
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Business and Industry think regional, state and international supply chain
The Shale Supply Chain in Ohio; EID, 2013
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Workers are more mobile --- they will travel further for a job…into the Region
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The best economic development strategy is to support your existing businesses
• Understand your existing business community
and help it grow • Who do your existing businesses buy from, sell
to, and partner with? • Don’t promise what you can’t deliver • Retention and Expansion is still the Best
Attraction Strategy
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Education and workforce training are key to a successful economy
• Realign workforce programs to focus on three key priorities: • Job Readiness training as a public priority • Specific skill training in direct partnership
with employers • Technical training is needed because of the
increasing computerization of tasks • Engage employers more directly: Train for
their job openings and for their future needs
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Education continues to define economic recovery.
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Emphasize a Small Business Strategy that fits your community • Small Businesses buy from --- and sell to --- large
businesses and employers
• 28 million small businesses support 49.2 percent of private sector employment.
• 18,500 large firms employed the other 50 %
• 52 percent of all small businesses are home based.
• 21.5 % of small businesses employ more than one person…only 10.7 percent of that group will employ more than 20 people.
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• The need to develop a strategy is NOT changing
• The need to develop strong partnerships is NOT changing
• The need to provide quality services is NOT changing
• The need to tailor your ED tools to the needs of your community is NOT changing
What’s NOT Changing?
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Key Questions
• Where are you, where do you want to be, how do you get there
• How well do you know your community?
• Have you established priorities, goals, tasks, with assigned leads?
• Do you have a toolbox that is appropriate to your community and priorities?
• Do you have a way of measuring performance and reacting?
Key Questions and Next Steps
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Mark Barbash Chief Operating Officer Finance Fund www.financefund.org [email protected] (614) 774-7599