Economic Development Metrics

1. Presented by Guillermo Mazier/ Atlas Advertising

2. About Your Presenters Guillermo Mazier – VP, Strategic Accounts, Atlas Advertising •  Former economic developer and tourism marketer for the Costa Rican Investment and Trade Development Board •  Managed economic development and tourism campaign for Tortugero, CR •  Industry speaker, content strategy and digital marketing specialist guillermom@atlas-advertising.com www.twitter.com/atlasad Drew Varnado – Data Innovation Specialist, IMPLAN Group •  Ph.D. in Agricultural Economics (Applied Economics) from Louisiana State University •  Published in peer reviewed journals, university publications, and in government agency reports (Bureau of Ocean Energy Management, forthcoming)

3. Introducing Atlas 1.  Denver-based marketing services company, specializing in economic development and tourism marketing 2.  Founded in 2001, 30 employees 3.  Has worked with more communities than any other economic development marketing services ﬁrm in the past 10 years: 195+ economic development clients in 47 states and 6 countries 4.  Specialize in providing branding, marketing planning, digital marketing, and GIS enabled websites, all for economic development 5.  Pioneered the industry’s ﬁrst metrics based benchmarking approach for marketing, business attraction, and business retention: High Performance Economic Development Marketing 6.  IEDC’s High Performance Economic Development Marketing Partner 7.  Frequent public speaker and lead speaker on benchmarking marketing, business attraction, and business retention programs, as well as on branding, research, digital marketing, websites, and GIS.

4. Introducing Implan IMPLAN is the leading provider of economic impact modeling for all types of users needing to assess the economic impact of events or projects in any of the 536 IMPLAN industry sectors (corresponding to NAICS). IMPLAN’s intuitive, online-platform makes constructing multipliers and social accounts easy. Whether you are working with zip codes, county, state, MSA or national aggregates, each subscription includes access to vast economic and demographic variables including employment, multipliers, tax impacts and more. IMPLAN has been developing complex databases and software since 1993.

5. View the Slides, Continue the Dialogue •  Continue the Conversation: –  Follow us on Twitter: www.twitter.com/AtlasAd –  Tweet questions using hashtag #ASKATLAS –  Join High Performance Economic Development LinkedIn Group •  View and share the slides with your colleagues (available now): www.slideshare.com/wright0405

6. Today’s Presentation •  Connecting metrics and “moneyball” •  A short history of metrics •  How one community is staying true to their metrics •  How to implement metrics for your EDO •  What tools make it easier for you? –  Benchmarking reports –  IMPLAN software –  Scorecards •  Summary: key takeaways

7. The Moneyball Concept •  True story about Oakland A’s 2002 season •  Team lost all their star players and must rebuild with limited resources •  GM Billy Beane carries daunting task of winning against teams with triple the budget •  Beane recruits intern-turned-assistant GM Peter Brand who has radical new ideas about how to win

8. The Moneyball Concept •  The answer: Instead of focusing on buying players, they needed to focus on buying wins •  In order to buy wins, they needed to buy runs •  In order to buy runs, they needed to acquire players that could get on base For Billy, the question was, "Which actions correlate most strongly to winning games?”

9. History of Metrics for Economic Development In 2015, the general public still doesn’t know the value of what we do EDOs have been measuring their performance for years However, with diﬀering viewpoints, metrics have gotten muddy and misunderstood In 2011, Atlas put together its ﬁrst survey of EDO outcomes, to assist EDOs in planning their marketing, business attraction, and business retention programs 2011 In 2014, IEDC published its “Making it Count” Metrics for High Performing EDOs 2014 2016

10. 25,000 123Average companies served Typical number of establishments in a community

11. Trends in the Profession That Make Metrics a Moving Target 1.  Digital is changing the way communities are being evaluated, and changing our roles in the process 2.  Workforce drives business location, and opens up new ways for EDOs to inﬂuence economies 3.  The debate about whether the profession drives outcomes continues, even as the Great Recession is in the rear view 4.  There are more deals happening in communities, leading to more positive impressions of EDOs 5.  The investor/stakeholder mindset is changing, as demographics of those involved in EDOs are changing

12. How Can Your EDO Go From .250 to .300? Ø  In the sport of baseball, most respectable players bat an average of .250, or one hit for every four times at bat. Ø  If a .250 batter is also a good fielder, he can expect to do well in the big leagues. Ø  But, if he hits .300, or three hits out of 10 at bats, he is considered a star. By the end of a season, only a hand full of players will be at .300 and be honored as a star. Consider this: the difference between the truly great players and the average ones is only one hit out of 20. What if we were to apply this same principle to economic development? How could a community know how to achieve its margin of greatness? And how do we know if, as economic developers, we’re making a difference?

13. 4 Ways IEDC Defines Performance Metrics 1.  Internal Segment (Employee satisfaction, funding sources) 2.  ED Program Segment (Business Attraction, Business Retention, Business Creation) 3.  Relationship Management Segment (Relationships with internal and external stakeholders) 4.  Community Segment (Community well being, in terms of demographics, workforce, household income, etc.)

14. Atlas High Performance Economic Development Focuses on the Relationship Management Segment (Plus Outcomes from those Relationships) 1.  Internal Segment (Employee satisfaction, funding sources 2.  ED Program Segment (Business Attraction, Business Retention, Business Creation) 3.  Relationship Management Segment (Relationships with internal and external stakeholders) 4.  Community Segment (Community well being, in terms of demographics, ) Outcomes for jobs announced and capital investment announced

15. Start With the Big 4, Then Get More

16. Source: How High Performance Economic Development Creates Exceptional Communities (2015) The Spread Between High & Low Performing Organizations is Staggering, at All Sizes

17. BUILDING A CULTURE OF RESPONSIBILITY

18. KEEP SCORE

19. REGIONAL SCORECARD

20. “

21. Poll Question: How many metrics do you use to measure your org?

22. Poll Question: Did your organization meet the metrics that it set in 2015? Do you believe that those metrics were not as aggressive?

23. Poll Question: What is stopping you from implementing metrics for your role within the organization?

24. Steps to Put High Performance into Practice 1.  Discuss your organizational priorities for marketing, business recruitment, and business retention, and start with a simple score card 2. Assign metrics to certain staff 3.  Set a plan to inﬂuence that metric for each staff person 4.  Make the metrics plan transparent to your stakeholders 5. Execute, report, and adjust

25. What are your Organizational Priorities?

26. Assigning Metrics to Staff What Metrics Does Each Function Inﬂuence? WEB VISITS INQUIRIES / CONVERSATIONS JOBS ANNOUNCED CAPITAL INVESTMENT ANNOUNCED CEO/Executive X X X X Business Developer X X X Marketer X X Researcher X

27. Setting A Plan So That Each Staff Person Can Drive High Performance BUILD THIS

28. Make the Metrics Plan Transparent to your Stakeholders region2000dashboard.org

29. Make the Metrics Plan Transparent to your Stakeholders ncdashboard.net

30. Execute, Report, and Adjust

31. Tools to Check Out! Public Sources 1.  U.S. Bureau of Labor Statistics 2.  U.S. Census Bureau 3.  Bureau of Economic Analysis 4.  State research centers/ED departments 5.  Area university research centers 6.  Atlas benchmarking tool Proprietary Sources 1.  Moody’s Economy.com 2.  EMSI (Economic Modeling Specialists Intl.) 3.  Edward Lowe Foundation (youreconomy.org) 4.  IMPLAN Group It’s unbelievable how much you don’t know about the game you’ve been playing all your life. - Mickey Mantle

32. The metrics that your EDO selects will drive the impact that you have on your community The impact that you have on your community will aﬀect the lives of your stakeholders, and prove the value of your EDO

33. Understanding Your Economy •  Data Driven Approach to Measure Total Impact •  Evalua<on of Projects •  Understanding the Impact of Your Organiza<on on the Economy •  Drivers of the Economy

34. •  Key Industries •  Employment •  Labor Income •  Output •  Total and Per Capita/Employee •  Mul<pliers •  Specializa<on •  Loca<on Quo<ent •  Shannon-Weaver Index Understanding Your Economy

35. Deﬁning your Metrics •  Measures of Opportunity-Import Subs<tu<on Strategy •  Household and Industry Demand •  Regional Purchasing Coeﬃcients •  Inputs into Key Industries •  Value Chain •  Growth Opportuni<es based on exis<ng demand

36. Quan<fying the Impact •  Inputs •  Employment, Investment, Wages •  Impacts •  Direct •  Indirect •  Induced •  Employment •  Industries Impacted •  Fiscal/Tax Impacts

37. These changes are the DIRECT EFFECTS The process begins with a change in Production or Spending Household Income Leakages Imports Personal Taxes Savings Spending on Local Goods and Services causes INDUCED EFFECTS Leakages Payroll Taxes In-Commuters Labor Income The Direct Output Effects are applied to the Indirect Multipliers to calculate the INDIRECT EFFECTS Leakages Imports Taxes Profits How Does Impact Analysis Work?

38. Baseline: Buncombe County, NC Indicator Smith, TX Buncombe, NC Output $21,596,609,976 $21,519,741,849 Output per worker $154,068 $127,890 Total Employment 140,176 168,268 Average HH Income $118,975 $92,351 Popula<on 218,842 250,539 Shannon Weaver Index 0.71469 0.74054 Number of Industries 265 311 Land Area 929 656

39. Top Five Sectors: Employment Sector Employment Output Employee Compensa<on Real estate 7,696 $958,804,688 $43,405,155 Full-service restaurants 7,267 302,299,438 148,285,294 Hospitals 6,960 990,983,032 453,143,005 Limited-service restaurants 5,343 380,082,947 82,896,782 Local govt, educa<on 4,697 $303,959,503 $262,238,342

40. Top Five Sectors: Output Sector Employment Output Employee Compensa<on Hospitals 6,960 $990,983,032 $453,143,005 Real estate 7,696 958,804,688 43,405,155 Wholesale trade 3,861 782,788,757 228,740,952 Oﬃces of physicians 4,384 684,782,288 476,147,156 Relay and industrial control manufacturing 1,686 $627,366,638 $147,647,827

41. Top Five Sectors: Employee Compensa<on Sector Employment Output Employee Compensa<on Oﬃces of physicians 4,384 $684,782,288 $476,147,156 Hospitals 6,960 990,983,032 453,143,005 * Employment and payroll of federal govt, non-military 2,425 420,883,575 269,351,044 * Employment and payroll of local govt, educa<on 4,697 303,959,503 262,238,342 * Employment and payroll of local govt, non-educa<on 3,065 219,606,110 189,266,922 Full-service restaurants 7,267 $302,299,438 $148,285,294

42. Loca<on Quo<ent: Specializa<on Sector LQ Employment Relay and Control Mfg 39.1 1,686 Sohware reproducing 16.5 193 Breweries 9.1 386 Aircrah engine 3.7 271 Wineries 3.7 216 Greenhouse, nursery, and ﬂoriculture produc<on 3.2 440 Prin<ng 2.7 1,304 Warehousing and storage 2.1 1,838 Hotels 1.6 2,040 Motor Generator Mfg 1.6 663

43. Import Subs<tu<on Descrip<on Supply Demand Opporunity RPC Sohware publishers $23,103,678 $115,512,649 $92,408,971 19% Computer systems design services 29,624,985 88,454,269 58,829,284 32% Facili<es Management Services 13,427,471 48,570,165 35,142,694 26% Technical consul<ng services 9,624,741 35,107,344 25,482,603 27% Machined products $27,740,564 $44,142,804 $16,402,239 2%

44. Filtering the Opportuni<es Sector Employment Output Per Worker Labor Income Per Worker Wireless telecommunica<ons carriers (except satellite) 230 $1,555,137 $29,557 Pharmaceu<cal prepara<on manufacturing 145 1,524,176 81,762 Electric power transmission and distribu<on 154 1,456,327 101,210 Breweries 386 1,014,475 50,807 Aircrah engine and engine parts manufacturing 271 $722,305 $78,407

45. Employment Impacts 200 200 200 89 131 96 90 96 145 0 50 100 150 200 250 300 350 400 450 500 Brewery Aircrah Engine Relay and Industrial Control Direct Indirect Induced

46. Labor Income 10,553,600 16,286,790 18,185,984 12,268,063 5,070,986 4,852,409 5,401,331 4,995,429 5,387,628 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Brewery Aircrah Engine Relay and Industrial Controls Direct Indirect Induced

47. Output 68,262,918 149,658,502 77,368,953 14,010,567 15,712,151 15,217,162 10,293,507 15,417,316 16,627,777 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 Brewery Aircrah Engine Relay and Industrial Controls Direct Indirect Induced

48. Tax Impacts $899,286 $1,459,038 $739,774 $728,240 $684,265 $949,527 $556,286 $743,312 $801,660 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Brewery Aircrah Engine Relay and Industrial Controls Direct Indirect Induced

49. Brewery-Key Industries Impacted: Output Descrip<on Indirect Induced Total Wholesale trade $2,308,450 $349,217 $2,657,666 Management of companies and enterprises $1,595,732 $48,825 $1,644,557 Truck transporta<on $1,363,556 $101,165 $1,464,721 Owner-occupied dwellings $0 $1,349,289 $1,349,289 Real estate $345,023 $702,027 $1,047,051 Lessors of nonﬁnancial intangible assets $823,686 $30,470 $854,157 Hospitals $0 $812,404 $812,404 Banking $357,344 $343,700 $701,044 Electric power transmission and distribu<on $447,746 $157,363 $605,109 Building Maintenance $363,376 $94,172 $457,548

50. Brewery-Top Ten Gross Inputs Descrip<on Gross Inputs Opportunity Regional Inputs Metal cans $37,080,663 $37,056,343 $24,319 Glass containers 30,365,156 30,365,156 0 Management of companies and enterprises 24,350,913 15,795,146 8,555,767 Wholesale trade distribu<on services 20,360,737 7,892,440 12,468,296 Flour 16,827,231 16,552,766 274,465 Paperboard containers 16,549,067 16,141,605 407,462 Grains 10,278,448 10,099,286 179,163 Truck transporta<on services 8,883,071 1,422,752 7,460,319 Wet corn 6,204,752 6,204,752 0 All other crops $2,878,644 $1,290,059 $1,588,585

51. Brewery-Top Ten Regional Inputs Descrip<on Gross Inputs Opportunity Regional Inputs Wholesale trade distribu<on services $20,360,737 $7,892,440 $12,468,296 Management of companies and enterprises 24,350,913 15,795,146 8,555,767 Truck transporta<on services 8,883,071 1,422,752 7,460,319 Banking 4,164,534 27,065 4,137,470 Electricity transmission and distribu<on 3,582,662 1,426,725 2,155,937 Natural gas distribu<on 2,562,920 432,365 2,130,554 Malt 2,472,651 547,368 1,925,283 Rail transporta<on services 2,555,302 658,898 1,896,405 Waste management and remedia<on services 1,871,146 137,159 1,733,987 All other crops $2,878,644 $1,290,059 $1,588,585

52. Indicator Direct Indirect Induced Total Employment 200 89 90 379 Labor Income $10,553,600 $12,268,063 $5,401,331 $28,222,994 Output $68,262,918 $14,010,567 $10,293,507 $92,566,992 Tax Impacts $899,286 $726,240 $556,286 $2,183,812 Brewery: Impact Summary

53. Key Takeaways •  Have a deep understanding of your economy and how it works •  Interac<ons between industries •  Build an economic ecosystem •  Understand the true value of your ac<vity •  Next wave of development

54. Moneyball for economic development is all about maximizing limited resources. It's about optimization, for which the key is to ﬁnd the one factor that matters most and focus on optimizing that

55. Key Takeaways •  Think diﬀerently about how you should view metrics for your EDO •  Learn to see the game in a whole new way •  Depend on information to predict success •  Measure what matters •  Recruit the right players (i.e. your board, partners, staﬀ) Intern-turned-assistant GM Peter Brand played by Jonah Hill

56. How the Moneyball Story Ends •  A’s finish first in the AL West •  Won a record 20 straight wins •  Won as many games as the Yankees (103) –  Yankees = $1.4 million per win –  A’s = $260,000 per win •  Red Sox take note –  Adopt the A’s moneyball philosophy and win World Series in 2004 (first time since 1918)

57. Thank you! Contact information: Guillermo Mazier Atlas Advertising guillermom@atlas-advertising.com 303.292.3300 x 232 Drew Varnado IMPLAN Group drew.varnado@implan.com

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