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Stephen McKnightVice President
Community and Market Assessments
www.fourtheconomy.com
Marketing & AttractionTrends, Tools, and Tactics
4 Key Discussion Points:
1. What is Economic Development 2. Product vs. Economic Development Marketing3. Getting to Know the New Customer (Pace of Change and Shifts Occurring)4. New Roles & Tactics
The Fourth Economy
Economic DevelopersHigher Ed
DevelopersNon-Profits
Strategic PlanningImpact StudiesAsset Mapping
Corporate Site Selection
This business of economic development is not getting any easier…
National Issues to be Determined: Global Financial Uncertainty Political Divides Federal Innovation Investment vs. Spending (NIH/NASA/DOD R&D?) Transportation Funding Revenue Generation (Taxes/Incentives/Global Competition)
Create Good Jobs
Family Sustaining Wages
Expand Tax Base
Keep Our Children Local
Land Development
Retention
Creation
Attraction
How Do You Define
Economic Development?
Why Here?
Great Place To Raise A FamilyLow Cost of Living
Live, Work, PlayQuick Commutes
Available Land
Phrase Million Pages
Phrase Million Pages
Business friendly 2.1 Good place to raise a family 1.81
Creative 2.1 Great business climate 1.79
Innovation / innovative 2.02 Beautiful parks 1.75
Natural resources 2 Biotechnology 1.69
Quality of life 1.98 Friendly business climate 1.26
World class technology 1.95 Hip 1.09
Leading research 1.95 Nanotech 0.673
Good or great work ethic 1.84 Most livable 0.638
Great place to raise a family 1.83 World class amenities 0.333
City/County & Economic Development Websites
SO WHAT?
Investment Decision Process: Competition is Fierce, Fluid and
Global…
What Sets You Apart?
SitesBuildings
CommunitiesLifestyle & Incentive Drivers
Regions Within/Across StatesCost & Lifestyle Drivers
State/Multi State LevelLogistic Drivers
Global or National LevelMarket Drivers
So What Do You Need to Know to Compete?
First, things Are Happening Fast
Second, Investment Priorities are Shifting
Raw Material Extractors & Farmers 1700s – 1850s (150 Years)
Industrialists 1850s – 1950s (100 Years)
Advanced Manufacturers 1950s – 1980s (30 Years)
Technology Developers and Communicators 1980s to early 2000s (20 Years)
The Digitals 2010s to 2020s (10 Years)
The Virtuals 2020s + (Every 3 to 5 Years)
The Law of The Fourth Economy
Economic Cycles and Disruptive Events Will Occur Every 3 to 5 Years
Wealth Based Model“Sustainable Wealth and Value”
Job Based Model“Job Creation”
Recognize the Shift
Product DrivenCost SensitiveMarket Driven
“Making the Sneakers”
Knowledge DrivenValue Sensitive
Place Driven
“Designing the Sneakers”
New StrategiesTools
TacticsRequired
Jobs
Products
Sites
Water / Sewer / Roads
Jobs Model
Customers Characteristics in a Jobs Model
Heavy Manufacturing Large, Centrally Located Employment Base People followed Jobs Cost and Wage Sensitive Use of Natural Resources Large Tracts of Land
We know Things Have Changed…
Large Traditional Expansions and Relocations Within the U.S. Are Increasingly Rare and Market Driven
Wealth
Knowledge
TechnologyHuman Capital
Financial Capital
Place
Corporate / Retail / Housing Quality and OptionsTransportation Infrastructure
Community – Civic Spaces“The Built Environment”
Wealth Model
Innovation is a Cornerstone Smaller Sizes – Many Locations – Higher Growth Talent Driven / Attract and Retain Grow by Buying or Joining Other Companies Business Follows the Talent Corporate Image Important Both Rural and Small Urban Settings Serial Reinvestment
Customer Characteristics in a Wealth Model
“Average Space Required Per Person
Down from 250 sq/ft to less than 150 sq/ft”
ULI
Businesses with fewer than 20
employees account for 90 percent of all U.S. firms and are responsible for more
than 97 percent of all new job
SBA
Higro businesses are those that expanded net employment at least twice between 2004 and 2009, with at least one year of expansion over the last two recession years.
Higros accounted for 2,322 of the 757,556 business establishments operating in the state at the end of 2009. Together these higros created a total of 60,850 net new jobs between 2004 and 2009, or an average of 26.2 new jobs each.
The other 755,234 businesses in PA created a total of 100,713 net new jobs over the same period, or an average of just 0.1 jobs each.
Most Job Gains Continue to Come from Smaller Firms
And new changes on the way….
Manufacturing 1850s – 1950s (100 Years)
Advanced Manufacturing 1950s – 1980s (30 Years)
Technology Development 1980s to early 2000s (20 Years)
Digital Generations 2010s to 2020s (10 Years)
The Virtuals 2020s + (Every 5 Years)
BUT – Most Economic Development Marketing Strategies are Stuck Here
Product vs. Economic Development Marketing
Board Education Is Required
I never knew I needed so much crap…
Happy Holidays!!
Product Marketing
Impulse Option – I need That!!Broad Consumer BaseProduct Duplicity is OK
It is Expected to Wear Out (Short-term/Small Investment)Advertising Works – Immediacy
Relatively Quick and Easy Product ChangesCentral Control of Product and Process
(Design/Manufacturing/Distribution)Cost Often Tops Value
Economic Development Marketing
Very Narrow/Specific Consumer BaseBig Investments for the Long Term
Cultural and Community Implications Human Element / Variable Impressions / Tomato Vs.
TomawtoSophisticated Modeling and Research Behind The
Scenes Without Your Awareness or Control of the ProcessYour Product Improvements Are A Long-term Proposition
Value Factors Increasingly Top Cost Factors
Effective Economic Development Marketing Strategies and Services
will…
Help Clients Connect & CollaborateEnhance The Corporate Brand
Attract and Retain TalentAttract Capital
Provide Live-Work-Play SettingsOffer Quality Housing Diversity
Access Knowledge Centers
Stapleton, CO
Southside Works Pittsburgh, PA
Oakland City, CA
Transit Linkages / OptionsGreen Space Development
Housing OptionsRecreation
Education & Training
Land Use PlanningDesign Guidelines
Technology TransferRisk Capital
Knowledge Network Management
Yes, Continue to Market your Sites and Buildings, put a map on our home page, but also take on New Roles as Economic Development Intermediaries
Attract and Sustain InvestmentEffectively Manage Growth
Attract and Grow TalentStrengthen Community Appeal
Community Development
Create Good JobsExpand Tax Base Keep Our Children LocalFamily Sustaining WagesLand Development
Modern Definitions and Goals
Big Picture Take-A-Ways
Recognize Your Customer Identify What Sets you Apart Align Your Assets Make Sure You Can Deliver
Tactical Level Take-A-Ways
Maps on Home Page Clear Contact Information Sites and Buildings Communicate Challenges
Stephen McKnightVice President
Community & Market Assessments
Fourth Economy [email protected]
www.fourtheconomy.com
Thank you!