marketing alberta communities regional economic development workshops march 14 to 18, 2005 module 3...
Post on 22-Dec-2015
213 views
TRANSCRIPT
Marketing Alberta CommunitiesMarketing Alberta CommunitiesRegional Economic Development Regional Economic Development
WorkshopsWorkshopsMarch 14 to 18, 2005March 14 to 18, 2005
Module 3 – Targeting for Economic DevelopmentModule 3 – Targeting for Economic Development
Presented by:Presented by:
Targeting Your Economic Targeting Your Economic Development ProgramDevelopment Program
Without “targets” your economic Without “targets” your economic development program is “aimless” and development program is “aimless” and ultimately ineffective.ultimately ineffective.– The choice of target sectors should be based The choice of target sectors should be based
on your community’s inherent “competitive on your community’s inherent “competitive advantages”.advantages”.
Economic Base AnalysisEconomic Base Analysis– Which sectors are strong and growing in your community Which sectors are strong and growing in your community
or region – which are under-represented - why???or region – which are under-represented - why???
Economic Base AnalysisEconomic Base Analysis
What is it?What is it?– A set of analytical toolsA set of analytical tools to profile the local economy. to profile the local economy.
Location Quotient AnalysisLocation Quotient Analysis - measures the - measures the concentration concentration of of each industry in the local economy.each industry in the local economy.
Shift/Share AnalysisShift/Share Analysis - measures the - measures the relative growth or relative growth or declinedecline of each industry during the study period - compared of each industry during the study period - compared to a reference area (usually the province).to a reference area (usually the province).
Employment by IndustryEmployment by IndustryData SourcesData Sources
Two sources of data for the analysis:Two sources of data for the analysis:2001 Census – 2001 Census – used for Location Quotient Analysisused for Location Quotient Analysis
– Statistics Canada used S.I.C. (Standard Industrial Statistics Canada used S.I.C. (Standard Industrial Classification) to record industry data. In 2001 they switched to Classification) to record industry data. In 2001 they switched to NAICS (North American Industrial Classification System). As a NAICS (North American Industrial Classification System). As a result we can’t use Census data to measure changes. result we can’t use Census data to measure changes. HoweverHowever it is the most accurate profile of the local economy. it is the most accurate profile of the local economy.
Labour Force Survey – Labour Force Survey – used for Shift/Share Analysisused for Shift/Share Analysis– The Labour Force Survey (also by Statistics Canada) provides The Labour Force Survey (also by Statistics Canada) provides
consistent and comparable data (using NAICS) back to 1990, consistent and comparable data (using NAICS) back to 1990, allowing us to measure changes in the economy. Unfortunately allowing us to measure changes in the economy. Unfortunately it is available only down to the it is available only down to the “Economic Region”“Economic Region” or “ or “Census Census Metropolitan AreaMetropolitan Area”. ”.
Location Quotient AnalysisLocation Quotient Analysis
Ratio of Ratio of ““Sector EmploymentSector Employment” ” to to ““Total Total EmploymentEmployment”” in local economy compared to a in local economy compared to a reference area (province).reference area (province).
LQ = 1.00LQ = 1.00 – same ratio as the reference area.– same ratio as the reference area.
LQ < 1.00LQ < 1.00 – sector is under-represented in the local – sector is under-represented in the local economy – implies leakage to another market.economy – implies leakage to another market.
LQ > 1.00LQ > 1.00 – sector is more concentrated than the – sector is more concentrated than the reference area – bringing new $ to the local economy – reference area – bringing new $ to the local economy – implies that the community has a “competitive advantage” for implies that the community has a “competitive advantage” for this industry. this industry.
Location Quotient AnalysisLocation Quotient AnalysisCalgary & Edmonton – 2001 CensusCalgary & Edmonton – 2001 Census
0.25
0.5
0.75
1
1.25
1.5
1.75
Calgary Edmonton
Calgary’s StrengthsLegal and Accounting ServicesFinancial & Information Services564,000 Total Employment
Edmonton’s StrengthsPublic AdministrationHealth & Education Services527,000 Total Employment
Shift/Share AnalysisShift/Share Analysis
Measures the Relative GrowthMeasures the Relative Growth of each sector of of each sector of the economy compared to the reference area.the economy compared to the reference area.– Reference Area Growth EffectReference Area Growth Effect – the net change in – the net change in
employment attributable to overall growth/decline of the economy in employment attributable to overall growth/decline of the economy in the reference area (the reference area (business cyclebusiness cycle))
– Industrial Mix EffectIndustrial Mix Effect – the net change in employment – the net change in employment attributable to the overall growth/decline of the industry (attributable to the overall growth/decline of the industry (growth growth industries vs. sunset industriesindustries vs. sunset industries).).
– Differential Shift EffectDifferential Shift Effect – the net change in employment – the net change in employment attributable to local factors.attributable to local factors.
Is the sector growing more quickly in your community than Is the sector growing more quickly in your community than elsewhere in the province or is it losing share?elsewhere in the province or is it losing share?
– This shows real growth vs. apparent growthThis shows real growth vs. apparent growth
Sample Shift Share AnalysisSample Shift Share AnalysisKitchener/Waterloo CMAKitchener/Waterloo CMA
Source: Labour Force Survey 98/02Source: Labour Force Survey 98/0298 / 02
Net ChangeReference
AreaIndustrial
Mix Differential
INDUSTRY SECTOR – NAICS CODE Employment Growth Effect Effect Shift Effect
Agriculture, Forestry & Fishing -2,000 421 -1,537 -884
Mining, Oil & Gas
Utilities
Construction -900 1,263 1,504 -3,667
Manufacturing 8,300 5,748 1,467 1,084
Trade 5,400 3,148 823 1,430
Transportation & Warehousing 3,400 758 -116 2,758
Finance, Insurance & Real Estate -1,200 1,674 -713 -2,161
Professional, Scientific & Technical 800 1,127 704 -1,031
Management, Administration & Support Services 2,500 716 761 1,023
Education Services 4,300 1,453 -180 3,027
Health Care & Social Services 2,300 1,621 -281 960
Information, Culture & Recreation 1,500 674 523 303
Accommodation & Food Services 500 1,284 -224 -560
Other Services (except public administration) -1,900 1,116 -1,516 -1,500
Public Administration -1,900 737 -549 -2,088
Total 20,600
Net Change EmploymentNet Change EmploymentKitchener/Waterloo CMAKitchener/Waterloo CMA
Source: Labour Force Survey 1998-2002Source: Labour Force Survey 1998-2002
-2,000
-900
8,300
5,400
3,400
-1,200
800
2,500
4,300
2,300
-1,900
500
1,500
-1,900-2,500
0
2,500
5,000
7,500
10,000
20,600 Net New Jobs added in 5 years40% of which were Manufacturing jobs
Shift/Share AnalysisShift/Share AnalysisKitchener/Waterloo CMAKitchener/Waterloo CMA
Source: Labour Force Survey 98/02Source: Labour Force Survey 98/02
-884
-3,667
1,0841,430
2,758
-2,161
-1,031
1,023
3,027
960
-1,500
-560
303
-2,088
-4,000-3,500-3,000-2,500-2,000-1,500-1,000
-5000
5001,0001,5002,0002,5003,0003,500
Differential Shift Effect
Shows Relative Growth/Decline Compared to the Province
Comments - Shift/Share AnalysisComments - Shift/Share Analysis
Manufacturing SectorManufacturing SectorNot only is manufacturing highly concentrated in the Not only is manufacturing highly concentrated in the Kitchener/Waterloo region, it is growing faster than Kitchener/Waterloo region, it is growing faster than elsewhere across the province.elsewhere across the province.
– 8,300 net new jobs added in K/W during the 5-year study 8,300 net new jobs added in K/W during the 5-year study period = average growth rate 2.6% per year.period = average growth rate 2.6% per year.
Commercial ServicesCommercial ServicesFinance, insurance, real estate, professional services (legal, Finance, insurance, real estate, professional services (legal, accounting, management consulting) and government offices accounting, management consulting) and government offices are all under-represented in Kitchener/Waterloo area and are are all under-represented in Kitchener/Waterloo area and are declining relative to provincial growth rates.declining relative to provincial growth rates.
– Net loss of 2,400 jobs in the Finance, Insurance, Real Net loss of 2,400 jobs in the Finance, Insurance, Real Estate, Professional Services and Public Administration Estate, Professional Services and Public Administration during the study periodduring the study period
Ranking Economic PerformanceRanking Economic Performance
Two economic models to rank the performance Two economic models to rank the performance of each sector in the local economy.of each sector in the local economy.– Both use the Economic Base Analysis.Both use the Economic Base Analysis.
Carvalho Model – Carvalho Model – developed by Dr. Emanuel Carvalho, developed by Dr. Emanuel Carvalho, University of WaterlooUniversity of Waterloo
McLean/Voytek Model – McLean/Voytek Model – from “from “Understanding your Economy: Understanding your Economy: Using Analysis to Guide Local Strategic PlanningUsing Analysis to Guide Local Strategic Planning” - Mary ” - Mary McLean & Kenneth Voytek, 1992McLean & Kenneth Voytek, 1992
Carvalho ModelCarvalho ModelRanking Economic PerformanceRanking Economic Performance
Developed by Dr. Emanuel Developed by Dr. Emanuel Carvalho – Univ. of WaterlooCarvalho – Univ. of Waterloo– Asst. Director EDAC/U of W Asst. Director EDAC/U of W
Economic Development Economic Development ProgramProgram
Considers 3 individual Considers 3 individual measures to rank each measures to rank each sectorssectors::– Concentration LocallyConcentration Locally
Location QuotientLocation Quotient– Strength of Overall IndustryStrength of Overall Industry
Industrial Mix EffectIndustrial Mix Effect– Local Growth FactorsLocal Growth Factors
Differential Shift EffectDifferential Shift Effect
HighHigh
Location Location QuotientQuotient
Industrial Mix Industrial Mix EffectEffect
Differential Differential Shift EffectShift Effect
1212 > 1.25> 1.25 PositivePositive PositivePositive
1111 0.75 – 1.250.75 – 1.25 PositivePositive PositivePositive
1010 < 0.75< 0.75 PositivePositive PositivePositive
MediumMedium
99 > 1.25> 1.25 NegativeNegative PositivePositive
88 0.75 – 1.250.75 – 1.25 NegativeNegative PositivePositive
77 < 0.75< 0.75 NegativeNegative PositivePositive
66 > 1.25> 1.25 PositivePositive NegativeNegative
55 0.75 – 1.250.75 – 1.25 PositivePositive NegativeNegative
44 < 0.75< 0.75 PositivePositive NegativeNegative
LowLow
33 > 1.25> 1.25 NegativeNegative NegativeNegative
22 0.75 – 1.250.75 – 1.25 NegativeNegative NegativeNegative
11 < 0.75< 0.75 NegativeNegative NegativeNegative
What’s Next??What’s Next??
Once you’ve selected your targets?Once you’ve selected your targets?– Get to know as much as you can about:Get to know as much as you can about:
– The industry sector in generalThe industry sector in generalIndustry leadersIndustry leadersIssues of concernIssues of concernLocations of significant clustersLocations of significant clusters
– Local firms in this sectorLocal firms in this sectorCorporate AftercareCorporate Aftercare
– Processes usedProcesses usedTraditional and Emerging TechnologiesTraditional and Emerging Technologies
– Up & Down Stream IndustriesUp & Down Stream IndustriesSuppliers & CustomersSuppliers & Customers
Corporate Aftercare ProgramsCorporate Aftercare Programs
Simply visiting your companies is Simply visiting your companies is the most powerful of all economic the most powerful of all economic development programs.development programs.– It is now generally understood that between It is now generally understood that between
70% to 85% of all new foreign direct 70% to 85% of all new foreign direct investment is actually follow-on investment investment is actually follow-on investment by multinational companies already by multinational companies already established in Canada.established in Canada.
– ““You can leave your passport at home and You can leave your passport at home and still have a strong business attraction still have a strong business attraction program.”program.”
– Matthew Fischer, CED, Ec.D.Matthew Fischer, CED, Ec.D.
Available for DownloadAvailable for Download
These 3 Power Point PresentationsThese 3 Power Point Presentations
IEDC Template in ExcelIEDC Template in Excel
Guide to Researcher on how to complete Guide to Researcher on how to complete the IEDC Templatethe IEDC Template
MMK Report on IEDC TemplateMMK Report on IEDC Template
Guide for a Corporate CallGuide for a Corporate Call
Performance Measurement ArticlePerformance Measurement Article
Maxims of Economic DevelopmentMaxims of Economic DevelopmentLook Inward for GrowthLook Inward for Growth
1. Existing businesses will generate as much as 1. Existing businesses will generate as much as 90% of the growth in your community.90% of the growth in your community.
Moreover, the vast majority of all new jobs are created by Moreover, the vast majority of all new jobs are created by small entrepreneurial firms.small entrepreneurial firms.
2. 70% to 85% of new Foreign Investment is 2. 70% to 85% of new Foreign Investment is actually follow-on investment by foreign-owned actually follow-on investment by foreign-owned companies already in Canada.companies already in Canada.
““You can leave your passport at home and still have an You can leave your passport at home and still have an effective foreign investment attraction program.”effective foreign investment attraction program.”
Maxims of Economic DevelopmentMaxims of Economic DevelopmentImportance of PlanningImportance of Planning
3. Be Strategic - There will always be too many 3. Be Strategic - There will always be too many opportunities competing for your time and opportunities competing for your time and budget.budget.
Prioritize - strategically select a manageable number of Prioritize - strategically select a manageable number of projects to focus on and build a broad base of support in the projects to focus on and build a broad base of support in the community for their implementation.community for their implementation.
4. Without well defined “targets”, your economic 4. Without well defined “targets”, your economic development program is “aimless”.development program is “aimless”.
Ensure your targeting is based on a solid foundation such as Ensure your targeting is based on a solid foundation such as an Economic Base Analysis.an Economic Base Analysis.
Maxims of Economic DevelopmentMaxims of Economic DevelopmentMarketing TechniquesMarketing Techniques
5. If companies can’t “Google” your community 5. If companies can’t “Google” your community you’re not in the game.you’re not in the game.
Over 90% of short lists in site selection are based on internet Over 90% of short lists in site selection are based on internet research - without you even being aware you were research - without you even being aware you were considered.considered.
Also, because basic information is already available on the Also, because basic information is already available on the web, your first contact with a client becomes much more web, your first contact with a client becomes much more critical requiring higher level information.critical requiring higher level information.
6. Personal contact is still the most effective 6. Personal contact is still the most effective means of communicating with your client.means of communicating with your client.
Choose face-to-face contact before any other form of Choose face-to-face contact before any other form of communication (advertising, trade shows, direct mail, etc.)communication (advertising, trade shows, direct mail, etc.)
For further information contact us at :For further information contact us at :
182 Willow Ridge Road, RR #3182 Willow Ridge Road, RR #3
Ilderton, ON N0M 2A0Ilderton, ON N0M 2A0
Tel: (519) 666-3668 Fax: (519) 666-3670Tel: (519) 666-3668 Fax: (519) 666-3670
Email: [email protected]: [email protected]