10 Strategies to Help Your Community Stay Competitive

Real World 21st Century Economic Development: Helping Your Community Stay on the Front Edge

Wyandot County Economic Development6th Annual Dinner

Mark Barbash, EVP, Strategic InitiativesFinance Fund

| 614.221.1114 T 614.221.7493 F | www.financefund.org

FINANCE FUND: WHO WE ARE

• Statewide nonprofit financial intermediary

• Established in 1987• Founded to connect low-income

communities with public and private sources of capital State, Federal, Banks, Private Institutions

.


FINANCE FUND: WHAT WE DO

Simplify the complexities of the financing process to help good ideas come to life – ideas that change systems, create jobs, address community needs, turn things around and improve the quality of life.

To date, Finance Fund and its affiliates have invested more than $296.4 million in housing, economic development, and community facility projects leveraging over $1.2 billion.

Amber Seitz

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FINANCE FUND: WHAT WE DO

Bring financial resources to urban and rural low-income communities in a wide range of projects:• Economic Development (job creation and

neighborhood revitalization)• Small Business Lending• Health care facilities and equipment• Commercial Real Estate Development


FINANCE FUND: CURRENT PROGRAMS

• PreDevelopment Grant• Economic Development Grant• Linked Deposit Fund• New Markets Tax Credit Loan Fund• Small Business Loan Fund• Community Health Loan Fund• Healthy Foods Financing Initiative

Wyandot Staying Competitive in Economic Development Nov 10, 2014

Is our economy coming back?

On the one hand….

On the other hand…


On the One Hand: Jobs are Coming Back..56th Straight Month of Growth


On the Other Hand: almost 40% of potential workers are NOT looking for work


…Wages are not growing along with the jobs…and

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Trend: Business Lending could show a turnaround


…family net worth has declined and is just starting to recover


On the One Hand: The number of long term unemployed continues to drop


On the Other Hand: Many people have only been able to find part time work


Trend: Ohio’s economy is expected to continue recovery

On the One Hand: Bank Lending Appears to be Coming Back

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On the Other Hand: Lending Standards have Tightened, Esp for Small Banks

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Ohio’s Economic Recovery

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Ohio’s recovery has been somewhat faster than the nation’s…


Trend: Ohio & the Midwest are leading manufacturing recovery

…Ohio & the region are showing strong manufacturing growth…


Trend: Ohio & the Midwest are leading manufacturing recovery

…auto jobs are coming back in Ohio after the recession & bailout…


1994

2013

2015

2001National GDPOhio GDP


…Ohio’s is expected to continue to grow in the next few years…and…



…Ohio ranks higher in the eyes of Site SelectorsSite Selection Magazine 2014 Top Business Climate Rankings

Survey of Key CEOs 9Economic Competitiveness 9New Facilities 2Mature Company Tax Climate 5New Company Tax Climate 5

Overall Ranking 5th


Ten Strategies to Help Your Community

Stay Competitive

Strategy 1: Analyze and understand what drives your local and regional economy


• Who are the major employers• Which industries are

growing• How does your

economy support the community


Trend: Economies are defined by their Regions

Strategy 2: Think, plan and act regionally

Economic growth is not

based on boundary lines.

The Solar Supply Chain in

Ohio


4,123 people work in

Wyandot County and live outside the county

Trend: Economies are defined by their Regions

5,354 people live in the county and work outside the county

3,973 people work and live in Wyandot County

Strategy 2: Think, plan and act regionally

• Companies are looking for your ability to bring a wide variety of resources to the table:– Infrastructure– Incentives and Finance– Education and Workforce– Permitting

• Political jurisdictions are almost irrelevant• You need to be ready way before the prospect

enters the door

Strategy 3: Think collaboration, not competition


Strategy #2: Collaboration is the New Competition

• Form creative new partnerships that will promote economic development

• Include partners like education and training, health care, major employers, lenders, utilities.

• Establish a leadership group that meets frequently, measures results and celebrates success.

• Understand which partner is best suited for which service

• Network with regional, state and national partners

Strategy 3: Think collaboration, not competition


Strategy #3: Double Down on Retention & Expansion

• Meeting the needs of existing businesses should be priority number 1!

• Most job growth comes from expansion of existing businesses in the community

• Many businesses leave a home-town location because of a lack of expansion space or financing

• New businesses look for customers, suppliers, strategic partners, and a quality workforce.

Strategy 4: Double Down on Retention and Expansion


Strategy #3: Double Down on Retention & Expansion

Strategy 5: The best attraction strategy is a good retention & expansion strategy


Site Selectors Survey, Area Development Magazine

• 89% of companies looking for new site locations consider whether there are businesses performing similar activities in the area of search.

• 60% of corporate execs get their most important information from industry peers

• 75% of site selectors don’t contact a community until after a “short list” is established

• Total Projects: – 93 (47 Expansion, 46 New)

–Projects connected with existing businesses: 78–Average Jobs: 181–High Jobs Number: 900 –Average Square Feet: 157,000–Average New Jobs: 256–Average New Square Feet: 203,000

• Big Deals: – 1 Project; 1,500 jobs, Mfg. 1M Sq. Ft.

Strategy 5: The best attraction strategy is a good retention & expansion strategy


Don’t get hung up on the big score. Big deals in site selection are few and far between.

• Companies are looking for a good quality of life for their executives and employees– Arts and Culture– Education– Diversity of Housing Opportunities– Varied Transportation Options– Recreational Opportunities– Support For A Safety Net

Strategy #5: Place MattersStrategy 6: Place Matters: Enhance what Makes your Community Livable


Strategy 7: Emphasize the Small Business Strategy that Fits your Community

• Main Street Revitalization• Small Business Assistance• Economic Gardening• 1099 Economy• Incubation vs. Acceleration• Small Business Development Center


Strategy 8: Develop a Workforce Strategy that recognizes changes in the economy


The pipeline of younger workers is significantly less than the number of retirement age workers.

Strategy 8: Develop a Workforce Strategy that improves skills needed by business


There is a significant mismatch between business needs and workforce skills.


Trend: The Impact of Advanced Manufacturing Technology

Strategy 8: Develop a Workforce Strategy that recognizes the change in technology

Trend: The internet is changing the way that everyone does business

Strategy 8: Develop a Workforce Strategy that recognizes the change in technology


Strategy 9: Fine Tune your Marketing, Web Presence and Social Networking

Have a user-friendly websiteLink your site with your regional economic development partnerEasily accessible public services75% of the research by a site selection company is done BEFORE you are contactedKeep your inventory of sites up to date


Strategy 9: Fine Tune your Marketing, Web Presence and Social Networking


Strategy 10: Fine tune your Investment Toolkit and know your community ROI

Successful economic development should help make fiscally stable local governmentUnderstand both the short and long term costs/benefits of your investments

Short term: Cost of building a new roadLong term: Cost of maintaining that road

Neglecting basic government services can hurt a community’s economic futureIt’s all about fiscal impact!


Property Taxes based upon Valuation

Sales Taxes based upon Sales Revenue

Income Taxes based upon Wages

Fees and Transfer Payments from other govt sources

GLOBALIZATION

LAYOFFS

FORECLOSURES

CLOSINGS




Successful economic development should help make fiscally stable local governmentUnderstand both the short and long term costs/benefits of your investments

Short term: Cost of building a new roadLong term: Cost of maintaining that road

Neglecting basic government services can hurt a community’s economic futureIt’s all about fiscal impact!


Strategy #2: Collaboration is the New Competition

What Matters Most to Site Selectors:1. Transportation Infrastructure2. Ease of Permitting and Regulatory Process3. Existing Workforce Skills4. Land/Building Prices & Supply5. Utility Infrastructure6. State and Local Tax Structure7. Flexibility & Availability of Incentives 8. Access to Higher Education 9. Legal Climate

Strategy 10: Make your Economic Development more than just incentives


Final Words….

Economic Development is like baseball. It’s hard work. To quote Tom Hanks in “A League of their Own”

“It's supposed to be hard. If it wasn't hard, everyone would do it. The hard... is what makes it great.”


Amber Seitz

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QUESTIONS?

Mark Barbash, EVP, Strategic Initiatives [email protected]

(614) 774-7599

Finance Fundwww.financefund.org

(800) 959-2333 - (614) 221-1114

THANK YOU!

mailto:[email protected]

http://www.financefund.org/

Economy & Finance

10 Strategies to Help Your Community Stay Competitive