Solving Challenges Others Cannot

Economic Development Policy Trends

Christopher D. LloydSeptember 24, 2008

McGuireWoods Consulting• Public affairs approach to projects• Establish long term relationships,

not short term gains• Largest firm in Virginia, offices in

North Carolina, Georgia, DC, Illinois• Effective national coverage

Presentation Overview

• Corporate trends • Policy trends• Maintaining Delaware’s

Competitiveness

Corporate Trends

• Increasing internal competition for capital investment funds

• Shorter timeframes for corporate decision making

• Acceleration of project development• Devaluation of tax credits

Corporate Trends

• More attention to long-term project costs (especially property taxes)

• Increased use of internal training resources

• Increased use of out-of-town contractors and project managers

Corporate Trends

• Increased attention to DMBE contracting

• Workforce diversity• Desire flexibility in performance

agreements for market fluctuations• Increasing importance of infrastructure

incentives

Corporate Trends

• Commitment to environmental stewardship and sustainability

• Rational and uniform environmental laws

• Focus on energy costs

Policy Trends

• Shrinking budgets (real and nominal)• Increasingly complex incentives –

consultant job security• Performance based incentives

(grants) instead of tax credits• “Ombudsman” initiatives

Policy Trends

• Increasing flexibility in use of training funds/delivery platforms

• More local incentives• At-risk site development and site

certification• Lowering corporate tax rates• Addressing “Big Labor”

Emerging Issues

• Energy and environmental policy and politics

• Impact of BRAC• Impact of immigration• Rural Areas – the Have Nots• Transportation gridlock• Offshore/onshore energy production

What should you do?

• No two projects are the same, so you cannot predict everything

• Show hospitality and flexibility• Long term partnerships, not golden

shovels• Educate elected officials about the

importance of economic development to tax base and quality of life

Maintaining Delaware’s Competitiveness• Build on reputation of corporate friendly legal

structure• Diversify industry base• Regulatory reform initiative• Business tax competitiveness study (Delaware

is ranked 12th highest in nation)• Invest in infrastructure, training• Federal procurement strategy• Increase awareness of Delaware among

corporate decision makers

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Development | Federal Budgeting and Contracting Advice | Federal Legislative Assistance | Grassroots Contact Program |

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