The challenge of keeping communities competitive is changing because of the nature of the economic recovery. This presentation to the Inland Northwest Partners provides some practical approaches to growing your town.

1. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

2. Changing
Times: Staying
Competitive in
Economic
DevelopmentMark Barbash
Executive Vice President
Finance Fund
www.linkedin.com/in/markbarbash

3. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
• Part 1: What’s happening in the economy
that’s impacting economic development
• Part 2: What this means for economic
development of our communities
Staying Competitive in
Economic Development

4. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Let’s remember how far we have come
since the end of the recession:
1 minute, 38 seconds

5. 5

6. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Is our economy coming back?
On the one
hand….
On the other
hand…

7. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
On the One Hand: Jobs are Coming Back ..
66th Straight Month of Growth

8. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Trend: Ohio’s economy is
expected to continue recovery
Bank Lending Appears to be Coming Back

9. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
… and Capital Investment is starting to
come back….

10. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
On the Other Hand: almost 40% of
potential workers are NOT looking for work

11. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
… and many people have only been able to
find part time work

12. … and demographic trends are changing
makeup of the workforce
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
The pipeline of
younger workers
is significantly
less than the
number of
retirement age
workers.

13. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
The number of banks has declined due to
mergers & acquisitions

14. 14
… and most larger banks have exited the
business of small business lending

15. 15
… and expensive financing from alternative
lenders is growing rapidly

16. 16
… while we are appear to becoming less
entrepreneurial over time

17. 17
The Inland Northwest Region is also
experiencing an overall recovery

18. 18
And jobs in the region are recovering and
projected to continue
Job Growth and Trends: 2001 – 2025 /
Percent Change

19. 19
But there some are disparities among the
INW Regions
2005 2006 2007 2008 2009 2010 2011 2012 2013
Labor Force Eastern Washington and
Western Idaho

20. Trend: Business Lending could
show a turnaround
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015 20
So what does this all mean for community
leaders?
• Economic recovery … with the economy
is going through a major transition…
• Globalization is continuing to challenge
American communities
• Productivity improvements because of
technology changes
• Demographics are shifting workforce,
interest in urban areas & job skills

21. 21
How should community
leaders respond?

22. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

23. Strategy 1: Analyze and understand what
drives your local and regional economy
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
• Who are the major
employers
• Which industries are
growing
• How does your
economy support the
community
• How does your
community support
the economy

24. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Trend: Economies are defined
by their Regions
Strategy 2: Think, plan and act regionally
Economic
growth is not
based on
boundary lines.

25. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
69,507
people work
in Inland
Northwest
and live
outside the
county
Trend: Economies are defined
by their Regions
80,502
people live in
the Inland
Northwest and
work outside
the county
248,026
people work & live in Inland Northwest
Strategy 2: Your residents and workers
come from throughout the region

26. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Strategy 2: Think, plan and act regionally
Between 2002 and 2012:
• 32,096 more residents
traveled over 50 miles
to work
• 32,198 more people left
the area to find work
• 30,185 more people
living outside the area
found work in the area

27. • Companies are looking for your ability to bring a
wide variety of resources to the table:
– Infrastructure and Public Serivces
– Incentives and Finance
– Education and Workforce
– Permitting
• Political jurisdictions are almost irrelevant
Strategy 3: Think collaboration, not
competition
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

28. Strategy #2: Collaboration is the
New Competition
• Form creative new partnerships that will promote
economic development
• Include new 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
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

29. 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
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

30. Strategy #3: Double Down on
Retention & Expansion
Strategy 5: The best attraction strategy is a
good retention & expansion strategy
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
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

31. • 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
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Don’t get hung
up on the big
score. Big
deals in site
selection are
few and far
between.

32. • 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
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

33. Strategy 7: Emphasize the Small Business
Strategy that Fits your Community
• Main Street Revitalization
• Tourism and Recreation
• Meat & Potatoes Small Businesses
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

34. Strategy 7: Emphasize the Small Business
Strategy that Fits your Community
• Access to Capital
• Small Business Assistance
• Economic Gardening
• Incubation vs. Acceleration
• Small Business Development Center
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

35. Strategy 8: Develop a Workforce Strategy
that improves skills needed by business
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
There is a
significant
mismatch
between
business needs
and workforce
skills.

36. Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015
Trend: The Impact of Advanced
Manufacturing Technology
Strategy 8: Develop a Workforce Strategy
that recognizes the change in technology

37. Trend: The internet is changing the
way that everyone does business
Strategy 8: Develop a Workforce Strategy
that recognizes the change in technology
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

38. Strategy 9: Fine Tune your Marketing, Web
Presence and Social Networking
• Have a user-friendly website
• Link your site with your regional economic
development partner
• Easily accessible public services
• 75% of the research by a site selection company is
done BEFORE you are contacted
• Keep your inventory of sites up to date
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

39. Strategy #2: Collaboration is the
New Competition
What Matters Most to Businesses & Site Selectors:
1. Basic Community Services
2. Infrastructure (Sewer, water, utility, connectivity)
3. Ease of Permitting and Regulatory Process
4. Existing Workforce Skills
5. Land/Building Prices & Supply
6. State and Local Tax Structure
7. Flexibility & Availability of Incentives
8. Access to Higher Education
9. Legal Climate
Strategy 10: Make your ED Tookit about
more than just incentives
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

40. Strategy 10: Understand the Return on
Investment (ROI) for Incentives
• Successful economic development should help
make fiscally stable local government
• Understand both the short and long term
costs/benefits of your investments
– Short term: Cost of building a new road
– Long term: Cost of maintaining that road
• Neglecting basic government services can hurt a
community’s economic future
• It’s all about fiscal impact!
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015

41. 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.”
Inland Northwest Partners Staying Competitive in Economic Development
September 17, 2015