Recommendations for

Transylvania County Economic DevelopmentApproach to Marketing

Targeted Industries

Independent Economic Development Task Force

March 19, 2014

Why is this process undertaken

1. Times have changed for Transylvania, especially in the last decade.2. Current efforts, while hard-fought, have not met ever-rising expectations.3. County Commissioners hired Jeannette Goldsmith, a consultant with significant

experience with corporate relocation.4. Ms. Goldsmith’s recommendations can be found: http://

www.transylvaniacounty.org/content/independent-economic-development-task-force5. She recommended a new economic development organization and a list of

targeted industries.6. This task force volunteered, and was commissioned to analyze her approach

and develop independent recommendations for:a. Economic Development Organizationb. Mission/Vision for the new organization, andc. Targeted industries with an initial marketing plan.

Agenda

1. Re-Introduce Team2. Purpose and Scope of tonight’s discussion3. Marketing approach recommendation4. Targeted industries recommendation5. Next steps

Transylvania = all of county, city, towns

Independent Economic Development Task Force Members

• David Bradford • Karen Gleasman, Chair• Ruth Harris• Billy Higgins • David Neumann• David Watkins• Jackie Whitmire

Local business owners & leaders, executives, lawyer, agribusiness, manufacturing, strategy, marketing, quality, large and small business experience, community leaders, not afraid of a little confrontation, active learners, good listeners, able to leap tall buildings….

Purpose/Scope of Tonight’s Discussion• On January 29th, 2014 we discussed:

Recommended Economic Development Organization structure (and how we got there) Initial mission and vision

Tonight we’re here to discuss: Targeted industries Initial marketing approach

vimeo.com/85673809 video of first presentation, courtesy of Daily Waterfall & Michael Trufant

Recommended Approach to Marketing

David Bradford….created the proposal

modified (ever so slightly) by rest of the task force….

Changing gears – targeted industries, but first…

• Remember J. Goldsmith indicated that initially and mostly, economic development growth would come from existing business retention and expansion Must do this well!

Some terminology clarification for this presentation• Welcomed industries – those who approach us and are consistent

with our Transylvania vision• Targeted industries – those which we actively recruit next discussion

Recommended Targeted Industries - Process• Brainstormed 27 (+7 from J. Goldsmith)• Sorted via North Carolina Department of Commerce Targeted Growth

Clusters, eliminating retention & growth of current businesses • Ranked via: Wages & Likelihood of Attracting, and

Fit with Transylvania and Ease of Investment• Selected industries ending up in both positive quadrants• NOT a completely thorough, fine-tuned selection process• Good list from which to start

Brainstormed Targeted Industry List 10/9/2013

Goldsmith Industries

Industries Industries Industries Target Company Profile

Nutraceuticals Aerospace industry parts Cut & Sew Medical care recoveryRev range: $50K - $50M

Outdoor Recreation Equipment Composites 3D Printing

Number of employees: 1-150

Food and Beverage

Consider methods of mfg: e.g. precision maching, web based

Environmental industries, e.g. recycled matls -> t-shirts

Retention/expansion of current businesses

Automotive Parts Brevard College BRCCQuality of place is big draw

Sports, Health, and Wellness Bamboo CampsPotential for above average pay

Solo Worker Destination spa Medical equipment

Tourism Destination health club Labs e.g. biomedical

Research lab: e.g. farm/agri Build musical instruments

Food processing, e.g. apples More movies hereArtisanal agriculture, e.g. mustards, Do More bars Music recording studios

Expansion of TVS EventsParts/supplies for existing comp., e.g. cans for OSKAR BLUES Continuing careMore like Everett Farms, Busy Bee

NOT in conflict with quality of place04/19/23 9

1st Sort: NC Targeted Growth ClustersFrom Report Released 1/24/14:North Carolina Economic Development BoardRecommended Strategies for Economic Growth2014- 2024North CarolinaJobs PlanDecember 2013

NC Targeted Growth Clusters – Wage Rate & Growth

Our List Fit with These Not a Good Fit with These

************ Manufacturing Transportation Logistics

***** Agriculture, Forestry & Food Energy

*** IT/Software Knowledge Creation

****** Hospitality, Tourism, Entertainment Military

***** Bio Pharma

**** Business Services

* a targeted industry;

some duplicates

Comparative ranking of brainstormed industry list

2/19/2014 12

Wag

es

Fit w

ith T

rans

ylva

nia

Ease of investmentLikelihood of attracting

Our Ranking was Subjective – Gut Feel• Wages – • Potential of approaching Hendersonville/Buncombe average ~$18/hr• Career advancement potential with wage growth

• Likelihood of Attracting• Size was about right• Decent reasons to be here and not elsewhere• Some supporting industries would need demand first before relocating here

(sequencing issue), e.g. precision machining

Higher Wage Industries We Can Attract

Wag

es

Likelihood of attracting

*Notes:Detailed upper right quadrant industries will be revealedThough brainstormed, the group had a natural bias for higher probability resultsNothing significant with position within a quadrantYes, we could debate the details ALL NIGHT LONGYes, the Economic Development Organization needs to build on these conclusions

*a targeted industry

Our Ranking was Subjective – Gut Feel• Fit with Transylvania• Consistent with community assets and demographics • Started looking a lot like “likelihood to attract”

• Ease of Investment (for new business)• Do we need major infrastructure modifications?• Are buildings/property available?• Note: this one could change with focused pre-investment by Transylvania

*targeted industry

Easier to bring in/good fit for Transylvania

Fit w

ith T

rans

ylva

nia

Ease of investment

Notes:There is a strong sequencing conclusion to this one, e.g. if we had more industries requiring precision machining it would “fit” better, now.Population demographics influenced “fit”Community assets, e.g. music and nature, also had a strong influence on “fit”Yes, we could debate the details ALL NIGHT LONG

Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants)

• Small/Medium Manufacturing, e.g.• Outdoor recreation equipment manufacturing• Build musical instruments

• Destination health club/spa• Camps• Sports Health & Wellness• Events/Conferences•Music recording industries•Motion picture industries

Decent waged, less “unique” fit, easier to bring in and attract industries

• Bio Pharma/Tech •Medical equipment• Artisanal agriculture • Solo workers including tele/internet customer

service from home

Rank Brainstormed targeted industriesLo Hi Lo Hi Lo Hi Lo Hi

Continuing Care x x x xMedical Care Recovery x x x x

Nutraceuticals x x x xMedical Equipment x x x x

Research Labs (Pharm/Agra, Biomedical) x x x xSolo Workers x x x x

Call Centers x x x xOnline/Tele Cust Service from home x x x x

Build musical instruments x x x x3D Printing x x x x

Outdoor Recreation Equipment x x x xCut & Sew x x x xAuto Parts x x x xAero Parts x x x x

Composites x x x xEnviron Industries - recycled matls to t's x x x x

Spec mfg, e.g. precision machining x x x xDestination healt club/spa x x x x

Camps x x x xSports Health Wellness x x x x

Artisanal agriculture x x x xFood processing x x x x

Food & Beverage x x x xMore like Busy Bee x x x x

Events/Conferences x x x xMore movies x x x x

Music Recording Studios x x x xTourism x x x x

Uniquely TC Ease to bring in Wages Liklihood to Attract

Details here for you to peruse, judge, and debate….

later.

Let’s Review our Deliverables…

Your Independent Economic Development Task Force has delivered:under budget (budget - $130,000, actual <$5,000)ahead of schedule (target – 12 months, actual – 8 months)this is the 26th meeting of the task force

Detailed initial marketing approach – Developed/presented by David Bradford

TCNC

Deliverable Review

Recommendation for a modified Economic Development Organization

Economic Development Organization Structure

New Business Development

Account Executive

Asst to Account Executive

Marketing

Marketing Specialist/Community event

coordinator

Heart of BrevardTourism Development Authority

Business Retention/ExpansionWorkforce Development

BRE/WD Leader

Heart of BrevardChamber of Commerce

Economic Opportunity NetworkTransylvania Schools

Blue Ridge Community College

Executive Director

Board of Directors – 11 members

5 new (3 net) positions

highlighted in bold

Deliverable Review

An initial mission and vision for the new organization

Mission

Orchestrate through engagement of investors, elected officials, existing organizations, and businesses, an attractive climate for creation, retention, and reinvestment of wealth within Transylvania County which is complementary to the long-term vision of Transylvania County and its residents.

Orchestrate – all look to the conductor, play their position, know what to expect from their partnersEngagement – active two-way participationCreation, retention, and reinvestment – that cycle we loved from the definition of Economic DevelopmentLong-term vision – required to set context and guidelines

Vision To achieve a dynamic and robust business climate resulting in stable well-paying incomes and growing opportunities allowing residents to live fulfilling lives

in a thriving place

Transylvania Economic Development Vision: What Do We Want To Be?

Community – Transylvania County is noted for it’s vibrant, diverse community where there is something for everyone--retirees , young families, and everything in-between. Residents are attracted to our top-rated schools, low crime rate, recreational opportunities, and economic growth.

Business Climate– Transylvania County businesses, from new startups to established businesses, from retailers to manufacturers, from agribusinesses to construction , grow and thrive. There is a “positive echo chamber” in the county that describes the environment as a great place to start and grow a business. Brevard, Rosman, and TC governments collaborate to create a “business friendly” environment while preserving our “sense of place”. Our community has a ready workforce trained at all levels of the economic ladder to support this economic growth.

Investment – Our community attracts businesses that are relocating and retains local businesses that are expanding because we offer amenities achieved through creative private and public capital investments in business ready sites, telecommunications, utilities, and workforce development.

Preservation – While TC residents enjoy increased economic opportunities, conserving the county’s natural beauty and resources is a priority. To the extent possible, each decision to expand or relocate a business to TC is made while preserving and enhancing the county’s “ecology of place” and enhancing its quaint, family-oriented, small-town atmosphere.

Deliverables

And a list of targeted industries

Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants)

• Small medium manufacturing, e.g.• Outdoor recreation equipment• Build musical instruments

• Destination health club/spa• Camps• Sports Health & Wellness• Events/Conferences• Music recording industries• More movies

(…but to be honest, we liked the process of developing the list perhaps more than the list itself.)

Wrapping up

• No changes have been made in the organization structure recommendation after careful consideration of feedback• The need for orchestration and collaboration with existing

organizations has been reinforced • Not starting from scratch, allows the new organization to build on the

strengths of existing organizations• Transylvania wide vision and comprehensive planning are essential to

providing context for economic development efforts

It’s been our pleasure to serve

and we look forward to amazing progress.

David, David, David, Ruth, Billy, Jackie, and Karen

QUESTIONS?

Next StepsOrganizations independently considering this proposal. Task Force has

assisted. Provide additional feedback to County Commissioners.

Voluntary commitment to the proposed structure from each organization – new leadership needs engaged followers.

Create oversight Board of Directors (Task Force work is done).

Write contractual agreements.

County budget appropriation for fiscal year 2014-2015.

Convert Transylvania Partnership, Inc. into this new entity.

Successful Economic Development

Requires something from everyone!

What should you expect from your elected officials •Increased investment in economic development•Transylvania-wide longer term vision to provide context and guidelines

Successful Economic Development

Requires something from everyone!

What we need from you –•Constructive participation• Ever-ready workforce

Successful Economic Development

Requires something from everyone!

What you can expect from the Economic Development Organization

• Orchestration of Transylvania Economic Development• A marketing effort that grabs the attention of new investors• Transylvania existing businesses are growing with fabulous stories• New businesses are investing here that are consistent with our

community vision

Thanks for listening

Anticipated Questions – Next Steps

1. Cost and funding of new organization? 2. How is this different from today’s structure? From J. Goldsmith’s proposal? Why are so

many of the existing economic development organizations remaining within the structure?

3. What large businesses will be targeted so we can get healthy wages?4. Besides the new organization, what else is recommended?5. Why will this be more successful? Is there a guarantee of new jobs?6. When will we see new jobs? How will I know what’s available?7. How can I best prepare to be a good candidate for new jobs?8. What will be done to make things more friendly for current & incoming businesses?9. Will this recommendation keep our younger family members in the area?10. How does Transylvania compare with Henderson and Buncombe relative to wages and

unemployment?

Recommended Budget & Funding? Increase county investment in Economic Development to a total of $530 – 640K in operating costs

o Salaries to attract professional staffo Travel, e.g. trade showso Rent o Marketing materialso Contracts for professional services

Competitive market rent is paid to the Chamber, allowing/incenting the Chamber to provide greater service for Business Retention and Expansion effort

Leveraging Tourism Development Authority’s marketing expertise and funding to embrace the value of a community marketing position and coordinator of a community calendar.

No additional funds for workforce development – leverage excellent efforts of Transylvania County Schools & Blue Ridge Community College (more active partnership)

We recommend increasing the capital reserve of the Transylvania Partnership to $500,000 in order to enhance the ability to facilitate significant investment in our community. The money should be privately managed.

How is this different?

• From today’s effort• More investment• New focused, functional responsibility – sales, marketing, and business retention &

expansion• Co-Location in central, optimistic looking site• Better, more efficient coordination, & shared resources• Accountability to new measurable goals – e.g. $ invested/net job, increase per capita income• Formal orchestration of all economic development efforts by recognized economic

development leader• Private employees accountable to agreed upon metrics

• From J. Goldsmith recommendation• Lower cost through preservation of subset of existing organizations• More directly leveraging our valuable, effective volunteer base• More focus on business retention & expansion

why we’re keeping existing organizations

Large businesses with healthy wages?Public money should be spent on recruiting successful, compatible businesses.• Smaller businesses are more likely to come here (Jeanette Goldsmith says

<50 most likely)• We recommend welcoming larger businesses which are compatible with the

county’s vision • Target companies with wages comparable to Buncombe and Henderson

counties

What else is recommended?Convert Transylvania Partnership Corporation into this new entity.

Significant investment in comprehensive Transylvania strategic plan:

Transylvania embark on a robust planning effort to better comprehend and anticipate change, while preserving the community character and values. This provides a contextual framework for the Economic Development Organization to operate, strategize, and ensures that future investment is compatible with the values of our community.

Formal collaboration across contributors

Unified marketing look & feel, extending work of Tourism Development Authority

Why more successful? Job guarantee?Increased collaboration with everyone pulling in same direction will

be a major factor for success.More investment in resources focused on specific measurable goals:

e.g. $ invested/net job, increase per capita incomeIncreased focus on business retention and expansion more likely to

yield jobs soonerTime (2 – 5 years) and concerted effort (forever) required to gain

momentum of new business developmentNo guarantee of jobs, but we believe jobs are more likely with this

approach.

New jobs, when? How will we know?

We are not starting from scratch – and will build on current successesIncreased focus on business retention and expansion more likely to

yield jobs soonerTime (2 – 5 years) and concerted effort (forever) to gain momentum

of new business developmentTo keep informed:

oPeriodic formal review of progress to measures – net job increase, new investments, per capita wage

o Establish relationship with supporting organizations: BRCC/JobLinko Expect organization to announce successesoMarketing team focuses externally and internally

How can I best prepare?

Believe in yourself, do not underestimate your capabilitiesBe ever-ready mentally and physically to take on new jobGrow by investing in yourselfSeize opportunitiesConnect to JobLink, Blue Ridge Community College, Transylvania

County Schools – job ready programDemonstrate ability to work hard with good work practices every

chance you get

Making Transylvania more business friendly?“Concierge” position will guide new investors through our processes.Create attitude of facilitation: “how we can rather than why we can’t” New organization is expected to identify and help eliminate barriers to

incoming investment All of us need to eliminate the negative feedback loop by working together

to resolve issues.All of us need to create the positive feedback loop. Find reasons to share

the good news.Increase credibility of Transylvania through effective local and regional

partnerships – business retention and expansionKeep our county worthy of investment – ready workforce, clean,

charming, inventory of buildings, land, and/or infrastructure

Keeping younger family members here?Jobs keep and attract people who share our valuesWith success, additional jobs in this area lessen the need to commute

to Buncombe, Henderson or beyondA diverse, healthy mix of small businesses leads to a more

predictable future which is less sensitive the success of any one company

Maintaining our wonderful quality of place is an important factor

Business Retention & Expansion

Step 1 Research

Systematic survey of local business needs/problemsBusiness “listening visits” by EDO and local government leadersData analysis: identify red flag factors causing local, high growth potential businesses to leave/fail/not grow.

Step 2Prioritize/Plan

Develop Projects/Plans to respond to problem areasForm project teams using contract services and volunteersFull participation of businesses in planning/prioritizing process

Step 3Implement

Example projects:Simplification of government regsDept of Commerce assistance in overseas marketingTraining in Lean MfgOnline Marketing TrainingDevelop tailored workforce development

NC County Comparison Data from NC Dept of Commerce, Labor and Economic Analysis Div

County Average Wage/Hr Employed Unemployed Unemployment Rate

Tier

Henderson $17.91 48,891 2608 5.1% 3

Buncombe $18.47 120,669 6426 5.1% 3

Haywood $17.79 26,826 1638 5.8% 2

Jackson $19.57 20,054 1251 5.9% 1

Macon $16.61 14,633 1137 7.2% 2

Transylvania $15.43 11,376 835 6.8% 2

NC $20.07 4,315,366 305 6.9%

04/19/23 47

Preliminary Conclusions

• Transylvania’s unemployment rate ~1.7% higher than Buncombe and Henderson• Matching the rates would result in additional 212 people in

Transylvania working (assuming no changes in workforce)• Wages are significantly lower• Do we have a higher percentage of lower paid occupations?• Matching occupation, how do wages compare?

04/19/23 48

Rough* Conclusions from wage data*See Slide

47 • Transylvania has a higher percentage of Education, Training, and

Library Occupations16% TC compared to 5% HC and 6% BCWages for this occupation ~15% lower in TC compared to HC & BC

• We have a comparable percentage of food service occupations9% TC compared to 11% HC and 13% BC

• We have a lower percentage of production occupations4% TC compared to 13% HC and 7% BC

• Average and Experienced Wages are 16 – 23% lower in TC compared with HC and BC

04/19/23 49

Transylvania – establishments by industry sectorIndustry Sector Establishments Employment Total Wages Taxable Wages

Agriculture, Forestry, Fishing & HuntingMiningUtilitiesConstruction 122 356 $2,824,260.00 $2,264,593.00 Manufacturing 33 385 $3,627,698.00 $2,276,095.00 Wholesale Trade 31 148 $1,567,477.00 $821,430.00 Retail Trade 121 1,356.00 $7,330,360.00 $5,766,278.00 Transportation and Warehousing 19 100 $1,160,048.00 $393,479.00 Information 10 141 $1,475,242.00 $988,362.00 Finance and Insurance 43 193 $2,083,118.00 $1,025,311.00 Real Estate and Rental and Leasing 51 117 $818,350.00 $735,264.00 Professional and Technical Services 90 224 $2,136,253.00 $1,132,721.00 Administrative and Waste Services 50 237 $1,741,690.00 $1,222,445.00 Educational Services 21 1,037.00 $8,375,658.00 $1,771,238.00 Health Care and Social Assistance 61 1,507.00 $13,559,049.00 $4,237,451.00 Arts, Entertainment, and Recreation 19 207 $1,177,194.00 $982,920.00 Accommodation and Food Services 86 1,257.00 $5,120,269.00 $4,779,212.00 Other Services, Ex. Public Admin 69 305 $1,798,405.00 $1,415,238.00 Public Administration 19 743 $6,204,201.00 $33,596.00

845 8313 60999272 2984563304/19/23 50

Some wage dataTransylvania Henderson Buncombe

Occupational GroupEstimated

EmploymentEstimated

Entry Wage

Compared to Henderson

Compared to Buncombe

Estimated Average

Wage

Compared to Henderson

Compared to Buncombe

Estimated Experienced

Wage

Compared to Henderson

Compared to Buncombe

Estimated Employment

Estimated Employment

Total, All Occupations 9,230 $8.67 -4% -5% $15.43 -16% -20% $18.81 -19% -23% 30,960 118,710

Management Occupations 300 3% $21.29 -4% -11% $35.89 -20% -21% $43.19 -24% -24% 920 3% 4,040 3%

Business and Financial Operations Occupations 160 2% $14.43 -9% -19% $22.21 -21% -21% $26.09 -24% -22% 820 3% 3,360 3%

Computer and Mathematical Occupations 70 1% $17.10 4% 1% $24.54 -8% -22% $28.25 -11% -28% 230 1% 1,520 1%

Architecture and Engineering Occupations 0% $15.11 -18% -18% $26.64 -11% -3% $32.41 -9% 0% 340 1% 1,810 2%

Life, Physical, and Social Science Occupations 120 1% $13.43 -42% -43% $22.55 -17% -102% $27.10 -11% -117% 70 0% 890 1%

Community and Social Services Occupations 150 2% $10.90 -16% -21% $17.18 -9% -12% $20.32 -7% -10% 400 1% 1,960 2%

Legal Occupations 0% 110 0% 790 1%

Education, Training, and Library Occupations 1,510 16% $10.49 -21% -12% $17.35 -16% -14% $20.77 -14% -15% 1,660 5% 6,600 6%

Arts, Design, Entertainment, Sports, and Media Occ 130 1% $9.16 -13% -1% $15.21 -20% -15% $18.24 -22% -18% 290 1% 1,340 1%

Healthcare Practitioners and Technical Occupations 410 4% $18.33 6% 4% $33.86 -10% -3% $41.62 -14% -5% 1,980 6% 10,830 9%

Healthcare Support Occupations 550 6% $10.18 7% 12% $11.96 -5% -4% $12.84 -10% -11% 1,410 5% 5,360 5%

Protective Service Occupations 240 3% $8.81 -32% -13% $15.48 -17% -8% $18.81 -14% -7% 490 2% 2,370 2%

Food Preparation and Serving Related Occupations 790 9% $8.08 0% 0% $9.37 1% -9% $10.01 1% -12% 3,260 11% 15,160 13%

Building & Grounds Cleaning & Maintenance Occup. 370 4% $8.08 0% 0% $10.89 3% -7% $12.30 5% -10% 1,330 4% 3,880 3%

Personal Care and Service Occupations 160 2% $8.01 0% -1% $11.96 14% 3% $13.94 18% 4% 640 2% 2,750 2%

Sales and Related Occupations 1,270 14% $8.20 -2% 0% $11.46 -43% -35% $13.09 -56% -45% 3,130 10% 14,320 12%

Offi ce and Administrative Support Occupations 1,170 13% $9.46 -12% -4% $14.03 -11% -5% $16.31 -11% -6% 4,390 14% 18,810 16%

Farming, Fishing and Forestry 0% 250 1% 60 0%

Construction and Extraction Occupations 330 4% $11.95 6% 1% $16.63 3% -1% $18.96 2% -2% 1,350 4% 3,590 3%

Installation, Maintenance, and Repair Occupations 0% $8.26 -42% -43% $11.57 -60% -60% $13.22 -65% -65% 1,640 5% 3,990 3%

Production Occupations 340 4% $8.67 -14% -15% $14.50 -15% -3% $17.42 -15% 0% 3,930 13% 8,020 7%

Transportation and Material Moving Occupations 460 5% $8.15 -8% -12% $11.91 -24% -20% $13.79 -28% -22% 2,310 7% 7,270 6%8530 92% 100% 100%

04/19/23 51

Interesting to note for Transylvania County• Zero working in the following occupations:• Architecture and Engineering• Legal• Farming, Fishing, and Forestry• Installation, Maintenance and Repair

• Only 81% of total employed included in wage data• Of those included in wage data, 8% not assigned to an occupation• Therefore these conclusions are not precise

04/19/23 52

Unexplained Differences

04/19/23 53