blend ed: turning the economic development game upside down
DESCRIPTION
Janet Ady, CEO & President of Ady Voltedge, and David Boyd, FAICP of Urban Associates Group, presented on Blend ED: Turning the Economic Development Game Upside Down at the American Planning Association's National Conference in Chicago. Without much fanfare, the economic development game has pivoted. The primary focus of site selectors on low-cost, shovel-ready sites and incentives has shifted to include considerations about talent and quality of life. A successful ED strategy is now a "blend ED" strategy, requiring marketing, diagnostics, and a more sophisticated understanding of what businesses are searching for. This presentation utilizes the experiences of Janet and David to help planners understand how the "Game" is played today.TRANSCRIPT
American Planning Association
Blend ED: Turning the Economic Development
Game Upside Down
Presented onApril 15, 2013
Prepared forAmerican Planning Association
2
What’s Changed in Economic Development
How to Compete Today
Today’s Learning Objectives
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A Little About YouYour primary role:
Planning
Economic Development
Marketing & Branding
All of the Above
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“Blend” EDPlanning
Marketing &
Branding
Economic Dev
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Ady Voltedge: About Us
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Ady Voltedge: Representative Clients
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Urban Associates Group: About Us
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Level of Contact PersonWhat level of contact person do site selectors usually work with the most?
Local level
County level
Regional level (multiple counties)
State level
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Level of Contact Person
Local; 25%
State; 40%
Regional; 35%
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Importance of State Business ClimateHow important is a state’s “business climate” when first being evaluated as a potential location for a project?
Very important
Somewhat important
Somewhat unimportant
Not very important
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Importance of State Business Climate
Very Important40%
Somewhat Im-portant
55%
Not Very Important
5%
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Taxes Labor Force Incentives Regulations
Key Elements of “State Business Climate”
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Drivers for Relocation/Expansion
Access to Markets Costs
Talent
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Coeur Chases Talent, Access“Chicago is a global, pro-business city, and international transportation hub and provides access to a broad and deep talent pool.”
- Mitchell J. Krebs, Coeur CEO
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Novartis Uses Talent to Compete“We have built research centers where the scientists are. We have not asked them to come to a particular location…So we are going where the talent is. That’s number one.”
- Joe Jimenez, CEO
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Site Selection Process
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Site Selection ProcessTransportation Labor
Fringe Benefits
Electric Power
Natural Gas
WaterWaste water
Location A $1,709,320 $3,201,800 $930,300 $93,400 $78,000 $12,000 $11,100
Location B $1,709,320 $3,402,800 $900,500 $93,400 $78,000 $8,600 $17,200
Location C $2,174,400 $3,310,700 $916,500 $96,900 $108,100 $39,200 $66,600
Location D $2,174,400 $3,204,800 $950,100 $106,100 $65,500 $12,700 $34,600
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Devolution of Incentives State and local levels Shifts between as-of-right and
specially negotiated Shift from only being based on job
creation, wages, and capital expenditures
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Implications Locals holding (some)
cards
Increased pressure on locals
Priority Investment Areas (TPPAs, etc.)
Location.Location.Location.
Trends
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Trend #1: TechnologyTechnology has put data in the reach of decision makers
A consultant can just as readily evaluate all metros, counties as readily as one
Also makes corporations dangerous as “data” ≠ “information”
22http://en.wikipedia.org/wiki/Metropolitan_statistical_area
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Implications Knowing how and why they
search like they do helps you position your region/municipality
Companies and consultants will always need help turning “data” to “information”
Communities and brokers who don’t provide their data never get in the game
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Most site selection consultants use a similar technique and similar data.
Implication: Those communities, regions
and states that understand these can use it to their advantage to position their regions/municipalities
Trend #2: Similar Data & Techniques
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Toolbox
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Toolbox
2
3
1
4
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Toolbox
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Shovel Ready programs are now available in the majority of states. A need to speed up the
site selection process and reduce risk
Not always well executed, no national standards
Trend #3: Shovel Ready
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If not shovel ready, you should at a minimum be “shovel ready lite”
Opportunity to differentiate your properties by “speed to market” (time = money)
Implications
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The potential methods for reaching site selectors are numerous
Trend #4: CommunicationLinkedIn Direct
MailMeeting
Here
Ads Email Meeting There
Fam Tour Twitter
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Reaching Site SelectorsWhat are the best ways for an EDO to communicate with site selectors about their region? Web sites Familiarization tour Electronic media Meeting at your office
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Example Communications
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Play to your strengths
Market regionally, compete locally
Know your assets – focus on those projects/industries that are very good fits
Implications
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Websites are the single most effective marketing tool in economic development
Most searches start here
Growing in importance
Trend #5: Websites
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Have to be able to find your website
Have to be able to find what they are looking for on your website
Have to make it easy to contact you for more information
Implications
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• Amount and accuracy of data on incentives
• Available properties
• Contact information
• Local Employers
• Demographics
• Infrastructure
• Workforce
• Ease of finding
website
How important are each of the following characteristics of an ED website?
Key ED Website Elements
Summary
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Know who you are
Competition is increasing
Websites rule the day
Planners have a major role (and that role is evolving)
Blend ED: Turning the ED Game Upside Down
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Contact Us!David Boyd#gnarlsboyd
theurbanassociatesgroup.com
www.linkedin.com/in/davidsboyd/
Janet Ady#adyvoltedge
adyvoltedge.com/
www.linkedin.com/in/janetady