1. San Angelo Comprehensive Economic Development Strategic Plan
City Council Meeting
February 21, 2012
Advance San Angelo Market Assessment | 1

2. Agenda
1. Project Overview
2. Market Assessment
3. Target Industry Analysis
4. Goal Areas and Priority Recommendations
5. Next Steps – IMPLEMENTATION

3. Project Process Overview
Project Set Up
1 Form steering committee, develop project website, collect stakeholder
and Stakeholder
input through interviews, focus groups, and business survey
Engagement
Economic and Collect and analyze baseline economic, demographic, and workforce
2
SWOT Analysis data, map assets, identify strengths, weaknesses, opportunities, and
threats
Identify target industry sectors to match between assets and site
Target Industry
3 selection requirements, conduct reverse site selection, identify needed
Analysis
workforce skills
Action/Marketing
Develop actionable strategies, create implementation matrix, provide
4 Strategy and
performance metrics
Implementation

4. Market Assessment
Resident Survey Findings

5. Market Assessment
Business Survey Findings

6. Market Assessment
Identification of Benchmarks – Criteria
• City must have a population between 80,000 and 200,000
• City must be the primary economic and population center of the region
• City must be at least 75 miles away from a major metropolitan area
• There must be a military base within the region
• There must be a small public university in the city
AT A GLANCE San Abilene, TX Amarillo, TX Wichita Lawton, OK Pueblo, CO Texas USA
Angelo, TX Falls, TX
Population (2010) 93,200 117,063 190,695 104,553 96,867 106,595 25,145,561 308,745,538
Population Growth (’90-’10) 10.3% 9.3% 20.9% 8.3% 4.6% 8.0% 48.0% 24.1%
Unemployment Rate, August 2011* 6.8% 7.4% 5.9% 8.2% 5.4% 11.4% 8.5% 9.1%
Labor Force Growth (’90-’10) 15.52% 20.3% 24.93% 6.9% 11.45% 25.76% 41.2% 22.29%
Median Household Income (2010) $38,792 $38,623 $42, 652 $40,050 $39,973 $35,195 $49,651 $52,048
% Bachelor’s Degree + (2010) 23.2% 23.0% 20.8% 23.1% 21.2% 17.2% 25.6% 28.1%
% in 25-44 Age Group (2010) 24.8% 26.4% 26.9% 26.1% 30.2% 24.2% 28.1% 26.6%
•Not Seasonally Adjusted Source: U.S. Census Bureau, Bureau of Labor Statistics, Decision Data Resources

7. Market Assessment
Market Assessment
Market Assessment
Answers the Following
Questions:
• Who is San Angelo?
• What Drives the San Angelo
Economy?
• How Competitive is San
Angelo’s Business Climate?
• How Well Does San Angelo
Support Small Business
Development?
• What Makes San Angelo
Unique?

8. Market Assessment
SWOT Analysis
Strengths Weaknesses
• Regional service center for a large • Limited professional job opportunities
geographical area • Relatively low wages and income levels
• Strong industry cluster concentrations in • Loss of young people to other urban areas
aerospace/defense, natural resources, and • Historical lack of focus on target industries
communication services • Relatively slow growth in population and
• Stable economy thanks to large employers economic base
in government, healthcare, and education • Limited air travel options
• Strong agricultural heritage • No nearby access to Interstate Highway
• Proximity to thriving Permian Basin oil and system
gas industry • Community gateways and some primary
• Unique natural assets (Concho River, Lake transportation corridors have uninviting
Nasworthy) streetscapes
• Wide range of cultural/historical assets • Limited amount of available office or
• Overall high quality of life manufacturing/ warehouse space
• Strong partnerships between SAISD and • Limited availability of specialized retail stores
Howard College and ASU • Limited amount of land with direct rail access
• Generosity of community and businesses

9. Market Assessment
SWOT Analysis
Opportunities Threats
• Improved marketing/branding of San Angelo • Continued loss of young, educated people
• Further capitalize on ASU’s connections to • Too much historical focus on being a “low-
the Texas Tech University system cost” community
• Strengthen relationships between ASU and • Relatively slow population growth within San
community Angelo, and to a greater extent within the
• New Business Resource Center (BRC) surrounding region
• Foreign-trade zone designation • Reliance on government, healthcare, and
• Build upon regional service center function education employment makes San Angelo
• Better define roles of economic vulnerable to funding cuts from state and
development partners, including improved federal government
process for working with prospects • Limited emphasis on “soft skills” necessary for
• Leverage public investments related to employment (punctuality, loyalty, courtesy)
Concho River and Lake Nasworthy to yield • Plant closures are a real threat, particularly for
greater private investments large employers that do not rely on local
• Continued downtown revitalization suppliers or customers
• Continued focus on expanding air travel
options

10. Target Industry Analysis
AE Target Industry Selection Process
SAN ANGELO, TX TARGET INDUSTRIES
Cluster Concentration Industry Regional Assets Vision
Trends Alignment
Target Industry
Sector and
Niche
Recommendations
1) Which industries are 2) Do the clusters reflect 3) Are there local or 4) Do these clusters meet
strong and are national growth trends? regional assets that the goals of the
concentrated locally or give industries a community?
regionally? competitive edge?

11. Target Industry Analysis
Cluster Concentration –Tom Green County, TX

12. Target Industry Analysis
Target Industry Recommendations
PROPOSED SAN ANGELO, TX TARGET INDUSTRIES AND NICHES
Regional Information
Advanced
Agri- Technology &
Energy Goods & Manufacturing
Business Customer
Services & Logistics
Support
Renewable Crop and Fabricated
Regional Technical
Energy Livestock Metals and
Medical Center Support
Component Production Machinery
Manufacturing
Renewable Medical
Energy Agricultural Arts and Customer
Equipment and
Generation Services Entertainment Service
Supplies
and
Distribution Festivals, Spor
Data Storage “Ports-to-
Animal Science ting Plains”
Oil and Gas Research and Events, and and
Processing Logistics and
Products and Development Outdoor Distribution
Services Recreation
Specialty Cyber Security
Retail

13. Target Industry Analysis
Energy
Description
Consists of firms engaged in the production and distribution of
renewable energy and oil and gas, manufacturers that produce
equipment or machinery for the renewable energy industry or oil and
gas industry, and businesses that process oil and gas for use in
other applications.
Market Opportunities
• Oil and Gas Products and Services and Gas Products and Services
• Renewable Energy Component Manufacturing
• Renewable Energy Generation and Distribution

14. Target Industry Analysis
Energy
Clean-Tech Venture Capital Investments in U.S.-Based Companies U.S. Wind Resources
Renewable Energy Venture Renewable Energy Percentage of
Investments ($ Millions) Total U.S. Venture Investments
$7,000 50%
$6,120 45%
$6,000
$5,055 40%
$5,000 35%
$3,761 30%
$4,000
$3,553
25%
$3,000 $2,658
20%
23.2%
$2,000 15%
$1,158 10%
$1,000 $807 $760 12.6%
5%
$0 4.3% 0%
2003 2004 2005 2006 2007 2008 2009 2010
Source: PWC Money Tree
Global Clean-Energy Market Size, 2000-2010
GLOBAL MARKET SIZE, IN $ US BILLIONS
Source: Clean Edge, Inc., 2011

15. Target Industry Analysis
Energy

16. Recommendations
San Angelo Comprehensive Economic Development
Strategic Plan
Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions.
Goal 2: Continue to invest in downtown San Angelo and the Concho River.
Goal 3: Fully capitalize on the unique opportunities provided by Angelo State University and
Goodfellow Air Force Base.
Goal 4: Tap into San Angelo’s innovative culture and leverage small business resources to
support entrepreneurship and minority business development.
Goal 5: Clarify and formalize the roles of San Angelo’s economic development partners to
ensure that economic development is streamlined, transparent, and well-understood
by all stakeholders.
Goal 6: Improve San Angelo’s image and ensure that marketing efforts highlight regional
assets and focus on target industries.
Goal 7: Ensure that workforce development and education programs are connected to the
marketplace and support the retention of young professionals.
Goal 8: Engage in specific strategies to grow existing and emerging target industry sectors.

17. Recommendations
Top 15 Priority Recommendations
• Strategy 1.1: Continue to invest in regional transportation infrastructure, partnering with the
Ports-to-Plains Alliance and TXDOT.
• Strategy 1.2: Expand opportunities for international trade in San Angelo, both for local
businesses seeking to import/export, as well as for foreign enterprises seeking to enter the U.S.
market.
• Strategy 1.4: Continue to aggressively pursue additional air travel connections.
• Strategy 2.1: Continue to support investment in San Angelo’s most unique natural resource, the
Concho River, to capitalize on its economic development potential.
• Strategy 2.2: Identify specific opportunities for additional businesses and employers to locate in
downtown San Angelo.
• Strategy 3.1: Involve Angelo State University (ASU) more closely as a key regional economic
development partner.
• Strategy 3.2: Leverage ASU’s unique strengths for economic development purposes and
provide support to ASU programs and research that are related to San Angelo’s target industries.

18. Recommendations
Top 15 Priority Recommendations
• Strategy 3.3: Continue the strong collaborative relationship between Goodfellow Air Force Base
(GAFB), the City of San Angelo, Tom Green County, and the San Angelo Chamber of Commerce.
• Strategy 3.4: Proactively retain military retirees from Goodfellow Air Force Base (GAFB), many
of whom have advanced technology skills.
• Strategy 4.3: Support and promote San Angelo’s vibrant network of small businesses and
entrepreneurs to create a culture of creativity.
• Strategy 5.1: Collectively agree upon operating guidelines which describe roles and
responsibilities and advance the goal of strong teamwork toward the economic development of
San Angelo.
• Strategy 5.2: Implement a formalized Business Retention and Expansion Program (BREP) with
regular outreach to existing San Angelo businesses.
• Strategy 6.1: Promote the “Advance San Angelo” campaign as a unifying initiative for San
Angelo’s regional economic development partners.
• Strategy 6.4: Build on Lake Nasworthy’s success as a recreational asset to fully capitalize on its
economic development potential.
• Strategy 7.2: Retain and attract more young people to San Angelo.

19. Recommendations
Top 5 Priority Recommendations
• Strategy 1.4: Continue to aggressively pursue additional air travel
connections.
• Action Item 1.4.1 Continue to involve regional leaders in the air service and
marketing campaign efforts to re-capture Houston as a daily flight destination
to and from San Angelo.
• Action Item 1.4.2 Maintain a high level of priority amongst regional business
and government leaders so that additional destinations can be pursued after
daily flights to Houston are successfully re-gained.
Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to
other regions.

20. Recommendations
Top 5 Priority Recommendations
• Strategy 2.1: Continue to support investment in San Angelo’s
most unique natural resource, the Concho River, to capitalize on its
economic development potential.
• Action Item 2.1.1 Publicize, promote, and celebrate investments
associated with the Concho River.
• Action Item 2.1.2 Leverage public investments to yield a much greater
amount of private investment, utilizing a public-private approach to develop
land adjacent to the Concho River in and near downtown.
• Action Item 2.1.3 Promote mixed-use development along the Concho
River.
• Action Item 2.1.4 Travel to other Texas cities with riverfront districts in or
near their downtowns.
–Visit the San Antonio River and Trinity Uptown in Fort Worth.
Goal 2: Continue to invest in downtown San Angelo and the Concho River.

21. Recommendations
Top 5 Priority Recommendations
• Strategy 2.2: Identify specific opportunities for additional
businesses and employers to locate in downtown San Angelo.
• Action Item 2.2.1 Attract and grow more small businesses to
downtown, focusing on daytime retail, bed and breakfasts, restaurants, and
artist studios.
–Market downtown as top location for start-ups, relocations, and expansions of local businesses.
–Highlight and promote recent growth in new downtown business establishments.
–Leverage under-utilized government-owned properties to attract private investment.
• Action
Item 2.2.2 Attract a full-service hotel into downtown to boost San
Angelo’s ability to draw a greater number of visitors from festivals and larger
conferences/conventions.
–Consider offering incentives and using a public/private partnership, to develop the hotel.
• Action Item 2.2.3 Retain and attract the region’s large public sector
employers into downtown San Angelo.
–Identify opportunities for large public sector employers to relocate existing facilities into downtown.
–Support the retention and expansion of Shannon Health’s existing downtown campus.
Goal 2: Continue to invest in downtown San Angelo and the Concho River.

22. Recommendations
Top 5 Priority Recommendations
• Strategy 3.2: Leverage ASU’s unique strengths for economic
development purposes and provide support to ASU programs and
research that are related to San Angelo’s target industries.
• Action Item 3.2.1 Building on ASU’s existing strengths in computer science
education, partner with Goodfellow Air Force Base to establish a significant
academic and research presence in the field of cyber security.
•Action Item 3.2.2 Consider funding an endowed chair at ASU or funding
individual ASU professors.
– Fund research in cyber security or computer science as a first priority.
– Fund animal science research as a second priority.
• Action Item 3.2.3 Market ASU’s three Programs of Distinction
(agriculture, educator preparation, nursing) to the region’s employers and to
prospects.
• Action Item 3.2.4 Leverage ASU’s association with the Texas Tech
University System to identify opportunities to attract education or research
functions from Texas Tech University’s Lubbock campus to ASU.
Goal 3: Fully capitalize on the unique opportunities provided by Angelo State
University and Goodfellow Air Force Base.

23. Recommendations
Top 5 Priority Recommendations
• Strategy 4.3: Support and promote San Angelo’s vibrant network of
small businesses and entrepreneurs to create a culture of creativity.
• Action Item 4.2.1 Hold an annual “Inventors and Investors Symposium”
that brings together small business owners, entrepreneurs, inventors, and
investors from throughout the Concho Valley region.
• Action Item 4.2.2 Building on the success of the Concho Valley Angel
Network, promote the growth of start-up companies through closer linkages
between locally-based investors, entrepreneurs, and small business owners.
• Action Item 4.2.3 Prioritize efforts to support San Angelo’s growing arts and
creative class community.
–Consider establishing a quarterly Arts Town Hall, which would provide a forum for local artists to
engage with public organizations to address any existing barriers to their success.
–Work with local artists to protect and expand San Angelo’s emerging arts districts through “art-
friendly” zoning and development regulations.
–Consider creating an incentive program that provides assistance for the development or
expansion of artist studios or artist housing in or near downtown San Angelo.
Goal 4: Tap into San Angelo’s innovative culture and leverage small business
resources to support entrepreneurship and minority business development.

24. Recommendations
Sector-Specific Strategies: Energy
• Develop marketing materials that highlight San Angelo’s location
in the top wind energy and oil and gas producing region in the U.S.
• Host a regional or state wind energy conference (TREIA or others)
and actively participate in major energy conferences (AWEA, Solar
Power International, Renewable Energy World Conference).
• Identify and market properties that are within the Concho Valley
region (but outside of the San Angelo urban area) for large-scale
wind farms and solar farms.
• More closely link San Angelo’s metal-working industry with
renewable energy production equipment.
Goal 8: Engage in specific strategies to grow existing and emerging target
industry sectors.

25. Recommendations
Sample Performance Metrics
Business Climate Entrepreneurship and Small Business Development
• Businesses served through the Business Retention and Expansion program (BREP) • Number of small businesses started
• Patent creation
• Ratings of overall business climate through BREP program
• Venture capital and angel capital flow
• Growth in small business exports
Workforce and Education
• Average wage growth Minority Business Development
• Local employers’ ratings of workforce • Number of certified minority businesses
• Changes in ACT/SAT scores and high school graduation rates • Number of minority businesses started
• Minority business revenue growth
• Utilization of workforce development programs
• Ratings of workforce development programs
Sites & Infrastructure
• Percentage of workers with an Associate’s Degree or higher, and Bachelor’s Degree • Absorption of commercial and industrial space
or higher • Commercial and industrial vacancy rates
• Amount of new commercial and industrial space constructed
Marketing and Business Development • Available commercial and industrial properties
• Number of qualified prospects • Available developable acreage with direct highway access, rail
access, and existing utility service
• Conversion rates of prospects to new businesses
• Available developable acreage with direct highway access and
• New jobs generated existing utility service, but without rail access
• Average salaries of new jobs
• Tax revenues generated Strategy Implementation Plan Outcomes
• Successful completion of initiatives (Annual Scorecard)
• Return on Investment
• Availability and utilization of local and state incentive programs
• Performance of businesses receiving incentives

26. Recommendations
Sample Implementation Matrix

27. 10 Questions to Evaluate this Plan
1. Is the plan developed in a collaborative manner?
2. Does it reflect and address the current problems and issues
facing the community?
3. Does it leverage existing strengths, assets and resources?
4. Is the plan realistic and market-based?
5. Is it focused?
6. Is it results-oriented?
7. Does the plan enforce accountability?
8. Does it help differentiate the community from competitors?
9. Does the plan incorporate best practices?
10. Is the plan implementable?

28. www.angeloueconomics.com
8121 Bee Cave Rd., Suite 200
Austin, Texas 78746
Discussion? PH: 512-225-9322
FAX: 512-225-9283