4. Automation could threaten
tens of thousands of jobs
in several of the Columbus
Region’s leading industries.
The most susceptible
occupations include:
Automotive &
Transportation
and Manufacturing
E-Commerce &
Logistics
Finance & Insurance
AUTOMATION ADVANCES
Source: Avalanche Consulting / Pearson, Nesta & Oxford University / EMSI
Occupation groups at greatest risk of decline through 2030
Occupation Description
Regional
Employment
Other Transportation Workers 2,498
Motor Vehicle Operators 28,445
Material Moving Workers 46,350
Legal Support Workers 2,830
Other Office and Admin.
Support Workers 28,002
Financial Specialists 24,106
Communications Equipment
Operators 630
Rail Transportation Workers 85
Vehicle and Mobile
Equipment Mechanics 10,800
Extraction Workers 256
Occupation Description
Regional
Employment
Textile, Apparel and
Furnishings Workers 1,806
Food Processing Workers 3,106
Plant and System Operators 1,511
Forest, Conservation and
Logging Workers 71
Metal Workers and Plastic
Workers 11,218
Woodworkers 777
Financial Clerks 24,299
Assemblers and Fabricators 15,026
Printing Workers 2,433
Other Production Occupations 17,065
TOTAL 221,313
5. LARGE EMPLOYERS
Source: Avalanche Consulting / Us Census Bureau
Largest % of employment
by firms with 1000+
employees
1. Orlando, FL
2. Las Vegas, NV
3. Jacksonville, FL
4. Columbus, OH
5. Memphis, TN
Employment by firms with 1,000+ Employees as % of Total,
2014
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
60.4%
55.2%
41.9%
COLUMBUS
6. YOUNG WORKFORCE
Source: Avalanche Consulting / Us Census Bureau
Greatest Share of Young
Professionals
1. Austin, TX
2. Salt Lake City, UT
3. Denver, CO
4. San Jose, CA
5. Portland, OR
% of Population Age 25-44,
2016
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
32.7%
28.9%
23.5%
COLUMBUS
7. 13.7%
8.2%
6.1%
EDUCATIONAL ATTAINMENT
Source: Avalanche Consulting / Us Census Bureau
Greatest Share of
Residents with Associate
Degree
1. Buffalo, NY
2. Rochester, NY
3. Orlando, FL
4. Pittsburgh, PA
5. Jacksonville, FL
% of Population Age 25-64 with Associate Degree
2016
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
COLUMBUS
8. WORKFORCE – A CRITICAL ENABLER TO
ECONOMIC GROWTH
Population 15-64, Indexed to 2007
90
92
94
96
98
100
102
104
106
108
110
112
114
116
118
2005 2010 2015 2020 2025 2030
U.S.
Columbus
Ohio
Source: Bureau of Economic Analysis, Bureau of Labor Statistics, US Census, Moody’s
10. STRONG ENTREPRENEURIAL
PERFORMANCE
Thanks to a high rate of startup growth,
the Columbus Region is increasingly
recognized for its supportive
entrepreneurial environment.
Metro rankings for the Kauffman index
of growth entrepreneurship
Metro 2017 Rank 2016 Rank
Washington, DC 1 1
Austin, TX 2 2
COLUMBUS, OH 3 4
Nashville, TN 4 5
Atlanta, GA 5 15
San Jose, CA 6 3
San Francisco, CA 7 8
Boston, MA 8 6
Minneapolis, MN 9 16
Indianapolis, IN 10 20
Source: Avalanche Consulting / Kauffman Foundation
Columbus is a top
metropolitan area for
ENTREPRENEURIAL VITALITY.
“
Kauffman Foundation, 2017
11. Wendy’s
Smart Columbus
Ohio University, DublinCardinal HealthTRC
Nationwide Children’s
VEHICLES FOR INNOVATION
The Ohio State UniversityThe Point at Otterbein
12. R&D EXPENDITURES
Source: Avalanche Consulting / National Science Foundation
Greatest Academic R&D
Expenditures
(per capita)
1. Baltimore, MD
2. Tucson, AZ
3. San Jose, CA
4. Pittsburgh, PA
5. Birmingham, AL
Academic R&D Expenditures per 1,000 Workers,
2016
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
$1,044
$394
$3
COLUMBUS
13. 2.2
0.8
PATENT PRODUCTION
Source: Avalanche Consulting / Us Patent & Trade Office
Greatest Number of
Patents Produced
(per capita)
1. San Jose, CA
2. Austin, TX
3. Raleigh, NC
4. Rochester, NY
5. Portland, OR
Utility patents produced per 10,000 residents 2015
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
COLUMBUS
14. VENTURE CAPITAL
Source: Avalanche Consulting / Pitchbook
Greatest Venture Capital
Funding (per capita)
1. San Jose, CA
2. Austin, TX
3. Denver, CO
4. Charlotte, NC
5. Cleveland, OH
Per Capita Venture Capital Funding
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
COLUMBUS
$66
$11
16. 50
28
11
Global trade and investment is lagging;
relatively few companies are engaged in
selling to global markets (exports) and
foreign investment is limited.
The majority of migrants to the region are
from other communities in Ohio. International
migration is modest.
Unless the Columbus Region becomes more
globally integrated, the number of direct flights
will continue to trail competitors and regional
brand awareness will remain less developed.
DIRECT FLIGHTS
Source: Avalanche Consulting / Individual Airport Flight Statistics
COLUMBUS
Availability of direct flights to 53 U.S. metropolitan regions
with populations 1 million and greater
1ST QUINTILE 2ND QUINTILE MIDDLE QUINTILE 4TH QUINTILE 5th QUINTILE
17. 21.6%
8.2%
5.6%
EXPORT ACTIVITY
Source: Avalanche Consulting / Brookings Institution
Highest Rate of Exports
as Share of GDP
1. New Orleans, LA
2. Grand Rapids, MI
3. San Jose, CA
4. Portland, OR
5. Louisville, KY
Exports as a share of gross domestic product
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
COLUMBUS
18. 7.5%
4.8%
2.6%
FOREIGN DIRECT INVESTMENT
Largest Share of Employment in
Foreign-Owned Establishments
1. Providence, RI
2. San Jose, CA
3. Charlotte, NC
4. Indianapolis, IN
5. Hartford, CT
Share of total private employment in foreign owned establishments,
2011
1ST QUINTILE 2ND QUINTILE
MIDDLE
QUINTILE
4TH QUINTILE 5th QUINTILE
COLUMBUS
Source: Avalanche Consulting / Brookings Institution
20. NEW HIGH GROWTH ENTERPRISES
Columbus is the
No. 1
rising city
for startups. Forbes, 2018
Root
“
Pillar
21. Big Lots
Sofidel
Amazon Data Center
Alliance Data
Facebook Data Center
711 N. High Street
BILLIONS INVESTED IN NEW FACILITIES
Bridge Street
22. PREPARING FOR GROWTH
Central Ohio is projected to grow by
MORE THAN
1 MILLION
PEOPLE
and an additional
600,000
JOBS
in the next several decade
About
500,000
new housing units will be needed to
accommodate projected population growth
in Central Ohio
Good morning. I’m (local partner self introduction)
What did you think of this morning? Any surprises? Any observations?
In this session we’re going to share some of the data referenced in Kenny’s presentation
Then it will be time for you to go to work
After the presentation we’ll pose a question.
Using the worksheet provided in your registration packet
Take 5-7 minutes to write down your opinions about each question posed.
Next, take 8-10 minutes to share your thoughts with your group.
Identify 2-3 topics or themes that have consensus among your group.
Share common themes with the room when the presenter invites feedback
Volunteers (raise hands) are available to assist with questions along the way
With that I’d like to introduce ______, Columbus 2020 ______, who will share the data
Earlier this morning Kenny spoke to these topics
Global technological, economic and demographic forces will reshape communities across world in the years ahead
Connectivity is important in a number of ways. Connecting and communicating with each other as we are doing today is an example
Global forces create significant risks for existing market leaders, including companies in the Columbus Region
Yet an evolving competitive environment will generate new opportunities for both established companies and burgeoning startups
Innovation must be enabled and achieved on a larger scale and at a faster pace
Leaning in with force and focus is necessary to build upon our success; we can’t afford to slide backwards. Complacency is not an option
Disruption is here
Automation is what you’re reading about on a daily basis, but we tried to quantify it. How is automation, AI, IoT, projected to impact our industries?
The six occupations you see on the left employ over 87,000 workers in the Columbus region
On the right, you see jobs related to those industries at greatest risk of decline over the next few decades. The change is significant.
The threat is two-fold, even if the occupations aren’t eliminated they may no longer serve as a source of employment growth for the region
And note, this is not isolated to one industry – the change and disruption that is anticipated crosses industries that are major contributors to our economy
It is paramount we anticipate and plan for disruptions such as these
Employment in the Columbus Region is highly concentrated among large employers, which includes firms with more than 1,000 workers.
Only three other comparable markets have higher concentrations. Orlando – Disney; Vegas – Casinos;
It is a luxury to have these employers in our market.
At the same time it presents risk and a threat. If any one business closes, that could be a hard hit with significant ripple effect throughout the region
Many of the communities you would expect to be on a list like this, Austin, Denver, San Jose. Of importance is that the region performs for well on this data point too
Yet we have strengths and weaknesses.
The working age population is strong.
We need to assure that the talent pipeline is prepared with in-demand skills. Initiatives to better connect learning institutions and industry, such as the Columbus Compact, will remain critically important.
While the relatively small proportion of Columbus residents with an associate’s degree is partially attributable to the large share of residents with bachelor’s degrees and higher, Columbus still trails other regions even when more residents are excluded from the analysis.
We must not only improve education/industry alignment but also educational and skill attainment to meet employer needs.
The Columbus labor force growth has strongly outperformed the US, Ohio and the Midwest. It’s great that Columbus is growing, but we need all of Ohio to grow.
We cannot lose sight of the importance of a strong STATE and a strong state translates to a growing state.
On a per capita basis, the Columbus region ranks 6th in academic research expenditures among US metros with populations between 1 and 3 million yet there is unrealized innovation capacity.
We have to give credit where credit is due.
Great entrepreneurial news comes out weekly.
The Kauffman foundation ranked Columbus third for entrepreneurial vitality.
Recall the earlier slide regarding our reliance on large employers.
Continued growth of new and small businesses will help offset that reliance
Earlier Kenny mentioned several of the vehicles of innovation.
Of important note is that innovation occurs in a variety of places
We need to support and enable innovate in the corporate, institutional and academic settings
We have more R&D than other places, and Ohio State is a huge proponent of this.
The spike on the far left is San Jose and I suspect no one in the room finds that statistic surprising. (NOTE – San Jose line “breaks” and would really be 3x the size)
Our research surfaced that R&D investments in the region are not translating into patent production.
Not only are we lagging the markets referenced on the slide, we also fall behind Lousiville and St. Louis.
NOTE: San Jose, CA line “breaks” to show more disparity in others
As you can see, we’re in the middle of the pack.
Perhaps all we need to point out is that Cleveland is in the top 5…… they’ve done a really great job at this. Shouldn’t we aspire to beat Cleveland?
In spite of significant increases of VC firms and funding in the region over the past decade we still have work to do
The presence of NCT Ventures, Drive Capital, Innovation Ohio and Venture Ohio are great assets for the region and state.
Some of their portfolio companies are names you should recognize: Root,
With more funding with will both seed and attract the gazelles and unicorns of tomorrow
Earlier I mentioned the importance of the connectivity and collaboration among stakeholders in the region
There are other connectivity factors of importance
We live in a global economy – we must stay connected
The regional’s lack of global diversity may be a factor in out lack of direct flights
We think we have a great asset and connectivity is really good
But we have some gaps
Because of our work we’ve filled some gaps – Seattle, SFO
We aren’t a hub airport and we’re not going to be in top five
Getting to Europe however is important and we’re working on that
Remember - Every time we add a flight, its more people and more business opportunity in our market
Global access and connectivity are key to tapping into the world market.
95% of the world market is outside the US border.
Export activity out of the region has improved but is not as high as it should be
Focus and attraction of foreign direct investment must also increase
Wins such as Sofidel, Brew Dog, and Fluvatex an Ikea supplier, are great FDI wins lets keep the momentum going
Note: Grand Rapids is in the top five so our less than stellar performance can’t be a function of size
95% of the market in the world is outside the US border.
Call out Sofidel, BrewDog, etc. but there’s more work to do.
Global technological, economic, and demographic forces will reshape communities across the US in the years ahead.
The nine global forces examined in the following pages are deeply intertwined.
In some instances, these global forces create significant risks for existing market leaders, including companies located in the Columbus region.
In other areas, an evolving competitive environment will generate new opportunities for both established companies and burgeoning startups.
On a per capita basis, the Columbus region ranks 6th in academic research expenditures among US metros with populations between 1 and 3 million.
Kenny did a great job of covering this in his presentation
Just to reemphasize: the start up or SME of today may become a major employer of tomorrow.
Are we providing the environment, policies and resources needed for these enterprises to thrive?
As Kenny highlighted the investment levels and diversity that is occurring is a point of pride
Our challenge is to see that our momentum continues
One way we can do that is to look forward and prepare for growth with enabling infrastructure: Roads, bridges, worker housing, fiber and public policy
An interesting fact. Our research revealed that compared to the benchmarked 35 markets with populations 1-3 million, for residential highspeed internet connectivity, the Columbus Region ranked 25th .
Fewer than 60% of households have access to high speed (100 megabytes/second) internet.
In Franklin County 82% of residents have access to high speed internet.
Outside Franklin County the highest percent of residential access to high speed internet is only 27.2%
As we look to the future we believe that these will be the building blocks to success:
Growth, Investment, Innovation, Individual Opportunity, and Community Preparedness
As we are gathered here today, we’d like to gather your perspectives so now its time to ask you to weigh in
You each play a different role to play in the community.
Our first question is from that your community stakeholder perspective and in the context of the strategy building blocks, what do we need to do to sustain momentum?
First, in your community and second, in the region.
Please take about 5-7 minutes to write down your thoughts on the worksheet provided in your registration packet.
<continue exercise)
The second question is from your community stakeholder perspective and in the context of the strategy building blocks, what do need to do more of? What should we do less of?
First, in your community and second, in the region.
Please take about 5-7 minutes to write down your thoughts on the worksheet provided in your registration packet.
<continue exercise)
We’re about of time. Was there anything you didn’t hear discussed that should be?
Thank you for engaging today. As a reminder please leave your worksheet with the individual staged by the door.
Please head back to the ballroom where lunch is about to be served. Enjoy the afternoon!