Presented by Co-Chairs: Charlie Chandler and Brad Dillon

Cluster Co-ChairsCross-cutting Initiative Co-Chairs

BREG Partnership Leaders

Derby Welcome Center/City HallJuly 10, 2015

Town HallBREG Strategy

Agenda

Welcome• What is BREG & What You Will Hear Today

Who is BREG? • Our Regional Economy

Cluster Strategies• Action Plans for Each Cluster

Cross-cutting Initiatives• Actions Plans the Support All Clusters

Moving Ahead with Implementation• The Greater Wichita Partnership

Questions & Answers2

WelcomeBREG: A Regional Economic Strategy Initiative

Reality Check• Our region faces challenges in keeping and generating jobs

Not a Local Issue• We have often taken “silos” of action on issues leading to good

but fragmented improvements on shared challenges

Time to Get Practical• We need to think regionally to compete globally as markets do

not “see” local boundaries that workers cross daily

Help Markets Work• We have taken a bottom-up, market-driven, collaborative steps

to build existing and new industries across our region3

What You Will Hear Today

Who is BREG?• All the regional collaborators that have made

BREG real and delivered practical results

The “Blueprint” Results• Cluster Strategies & Actions

• Cross-cutting Regional Initiatives

• Our New Partnership

• Our Projected Outcomes

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Step 1. Engage & Prepare Stakeholders

Mobilize

Step 2. Perform Regional Diagnosis

Analyze

Step 3. Build Action PlanBased Strategy

Catalyze

Step 4. Launch ImplementationPartnership

Realize

Step 5. Support Ongoing Implementation

Actualize

Status of BREG Process:Transition to Implementation

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Where We Are Now:We Completed BREG’s Three Organizing Components

Cluster Strategies• Industry-driven initiatives to generate jobs based on collaborative actions

Cross-cutting Initiatives• Region-wide initiatives to create advantages for all industries

Implementation Partnership• Organization with a charter to help markets work by aligning inputs with

outputs: Build Clusters: Bring together members of each industry cluster

Support Cluster Actions: Provide coordination and technical assistance

Initiate and Support Regional Initiatives: Coordinate development of crosscutting

initiatives

Track & Report Progress: track and report to the region on our progress 6

WHO IS BREG?Our Regional Economic Stakeholders

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Who is BREG?Our Region’s Economic Input & Output Leaders & Stakeholders

Co-Chairs• Charlie Chandler, INTRUST

(Wichita)• Brad Dillon, Gilliliand & Hayes

(Hutchinson) Sponsors

• City of Wichita• Greater Wichita Economic

Development Coalition• Regional Economic Area

Partnership• Sedgwick County• Wichita Chamber• Wichita Downtown Development

Corp• Wichita State University

• Stewards– 50 regionally-focused institutions &

companies

• Cluster Co-Chairs– 14 leaders who hosted the seven

cluster groups

• Participants– Approximately 200 participants

over three months

• Project Team• Economic Analyses: WSU

(Bradley & Franklin)• Cluster Meetings: GWEDC

(Campbell & Shelton)• Strategy Advisors: StarNet

(Masson & Gollub) 8

Industry Cluster Co-ChairsA Terrific Job of Anchoring Cluster Strategy

Advanced Manufacturing• Ron Weddle (WMA) & Ken Seaman (Aerospace Systems & Components)

Oil & Gas• Dave Murfin (Murfin Oil) & Alan Banta (TransPacific)

Aerospace • Lynn Nichols (Yingling Aviation) with five others

Data Services & IT • Stan Skelton (NetApp) & John Jones (Data Center, Inc.)

Advanced Materials • Paul Jonas (WSU) & Ron Weddle (WMA)

Health Care • Dr. Darrell Youngman (Via Christi) & Jon Rosell (MSSCO)

Transport & Logistics• Jeff Lackey (TranSystems) & Lee Spence (Underground Vaults & Storage) 9

Cross-cutting Initiative LeadersStepping Forward to Guide Regional Initiatives

Innovation• John Tomblin and Andy Schlapp (WSU)

Workforce• Keith Lawing (Workforce Alliance)

Communications • Susan Armstrong (Armstrong Chamberlin) and Aaron

Bastian (Fidelity Bank) Logistics for Bandwidth

• Wayne Chambers (HighTouch) and Tony Russell (Kansas FiberNet)

Export• Karyn Page & John Schott (Kansas Global Trade Services) 10

CLUSTER ACTION PLANS

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Our Region’s Advanced Manufacturing Cluster

Size: ~11,000 jobs & 606 firms, second largest industry in our region

Revenue: ~$1.6 billion in 2012 Structure: Led by four firms Segments:

• Manufactures of farm machinery & equip.

• Powered home lawn & garden equipment

• Construction machinery

• Metal or metal products

• Surfaces, physical & chemical properties

Market: • Machinery: Revenue expected to increase an

annualized 2.4% to $46.8 billion due to exports

• Metal Working: Revenue is projected to increase an annualized 2.5% to $35.4 billion in the five years to 2019

Advanced Manufacturing Sales 2012

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Advanced Manufacturing Action Plans

■ Innovation: • Facilitate transfer and application of technology, through conferences, to

regional manufacturing companies, facilitating workforce changes and cost

reductions necessary to compete globally.

• Expand and promote local R&D partnership capability for regional industry

fostering innovation and technology transfer

■ Workforce:• Develop local supply chain talent through a regionally available supply chain

management degree program coordinated with existing certification

programs

• Integrate supply chain knowledge with advanced manufacturing – e.g.

lean manufacturing, quality system analysis, supplier development

• Develop a communications strategy to promote advanced

manufacturing & match students with co-ops, internships & apprenticeships

Advanced Manufacturing Action Plan Impacts

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In three to five years… Innovation

• Successfully convene two industry Advance Manufacturing technology transfer conferences

• Increased manufacturing automation focused education enrollment• 20% growth in funding of regional strategic R&D development

partnerships from small/medium sized companies • 20% increase in orders for regional advanced manufacturing companies• Global recognition for regional advanced manufacturing focus and

capabilities

Workforce• 10% year-over-year enrollment growth in the regional Supply Chain

Management degree program• Program graduates receive 2 to 3 quality job offers• Regional accredited high school counselors include manufacturing job

opportunity information in their standard counseling• Double participation in all co-op/internship/apprenticeship programs

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Our Region’s Aerospace Cluster

Size: ~31,000 jobs in 219 firms Revenue: ~$6 billion in 2012 Structure: Mature industry led by

large firms Segments:

• Aircraft manufacturing

• Aircraft parts and equipment

• Search, detection & navigation instruments

• Engineering services

Market: Expected annualized growth of 3.5% to $215.2 billion by 2019

Regional Aerospace Sales 2012

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Aerospace Cluster Candidate Actions

Capital• Work to promote export credits

Governance• Regional/state effort to consistently promote Kansas to the aviation industry.

Innovation• Protect and extend our position as global leader in aviation research• Continue to publicly fund NIAR KART initiative• Develop a shared manufacturing demonstration facility• Form an Advanced Manufacturing Innovation Alliance (AMIA)

Logistics• Nurture an intentional export economy that accelerates job growth

Workforce

• Protect and extend public funding for equipment and training resources at WSU NIAR and NCAT WATC

• Establish a Wichita Talent Development Cooperative

• Secure the talent pipeline by shifting misconceptions of manufacturing and connecting workers with skills for successful careers

Our Region’s Advanced Materials Cluster Size: ~6,258* jobs (2012) Revenue: ~ $669 million* (2012) Structure: Top Employers

• Koch-Glitsch LP• Pioneer – Ram Incorporated• Center Industries Corporation• Metal-Fab Inc.

Segments:• Plastics, resin, synthetic rubber, artificial

synthetic fibers and filaments, metal forging and stampings, metal services and fabricated structural metal products.

• Advanced materials research, development and production

Markets• Strong growth in composites (4.7% per year)

reaching $23b by 2017—used in many segments• Moderately increasing demand for laminated

plastics (2.7% per year) in construction & autos• Metal working expected to grow at 2.5% per year

to #35.4b by 2019.

Advanced Materials Sales 2012

*Based on a broad definition of advanced materials, which includes all metal, plastics and rubber industries, some of which are included in other clusters. 17

Advanced Materials Cluster Action Plans

Innovation: Annual Showcase Event: An annual advanced

materials showcase event to:

• Showcase advanced materials in region

• Demonstrate benefits of being in cluster

• Showcase industry trends in advanced materials

Innovation: Collaborative R&D: A technology exchange and

development partnership for shared innovations within the industry

and regional users, e.g. advanced manufacturing, oil and gas,

aerospace

Workforce: A communications and education program targeted at

academic counselors to generate• Awareness and excitement of potential in Advanced Materials

• A skilled workforce pipeline for future application of advanced materials

• Degree programs for materials sciences and materials engineering18

Advanced Materials Action Plan Impacts

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In three to five years…

Innovation: Showcase Event• National recognition as a leader in advanced materials and processes

One major media piece about the regional industry

2 to 3 major corporate sponsors for the ongoing event

• Increase in year-over-year attendance and registration requests to participate in

our event

• Double our cluster membership

Innovation: Tech Exchange and Partnerships• Pool of shared technology, IP and technical papers

• Advanced materials R&D commercialization Start ups

Tech transfers

Workforce• Cut in half the time to fill job vacancies

• Triple the number of qualified candidates per posting

Oil & Gas Production & Transport 2012 Sales

Our Region’s Oil & Gas Cluster

Size: ~3,908 jobs & 470 firms in 2012 Revenue: ~$856 million in 2012 Structure: Established industry led by

large employers with many small firms Segments:

• Drilling oil and gas wells

• Crude petroleum and natural gas

• Support activities for oil and gas operations

• Oil refineries

Markets: • Oil & Gas Drilling: Forecast to increase at

annual rate of 4.0% to about $139.0 billion through 2019.

• Petroleum Refining: Forecast to rise at an annual rate of just 0.5% to $746.8 billion. Natural gas markets are a growth engine 20

Oil & Gas Cluster Action Plans

Innovation• Launch a Research & Development center to generate

innovations and connect companies to emerging innovations

Communications • Carry out an integrated communications strategy to

influence public policy and promote the region to enhance workforce recruitment

Workforce• Build a skilled workforce development pipeline that includes

regional internships and apprenticeships

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Oil & Gas Action Plan Impacts

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In three to five years… Innovation

• We will have one to three new prototypes or tools for increased production efficiencies

Communications• Positive media articles about the industry (economic

impact, environmental responsibly & clean up) within the next 12 month, moving from reactive to proactive

Workforce• Increased pool of applicants & skilled personnel by 25%

with a vacancy period for job postings cut by 1/2

Our Region’s Data Services & IT Cluster

Size: ~5,086 jobs in 346 firms Revenue: ~$610 million in 2012 Structure: Three large employers but

predominantly small firms Segments:

• Data services• Plan & design of integrated hardware• On-site management of computer

systems & data processing facilities• Semiconductors

Markets: Strong export markets. • Data Services: Revenue is expected to

grow an annualized 4.0% to $431.1 billion to 2019.

• IT (Hardware): Related revenue is forecast to increase at an annualized 3.0% to $92.0 billion to 2019.

Data Services & IT Sales 2012

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Data Services & IT Cluster Action Plans

Innovation• A regional pre-competitive R&D and technology transfer initiative

across targeted clusters focused on big data and its applications

Workforce • New degree and linked certification programs focused on cyber

security to meet regional needs

Logistics• Partnership to expand bandwidth-capacity across the region

Marketing/Communications• A forum for information exchange within the region leading to a

communications strategy to globally promote the region’s IT industry

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Data Services & IT Cluster Action Plan Impacts

Innovation• We are a region recognized for distinctive cluster-focused big data and security

solutions and applications that grew out of collaborative R&D initiatives.

Workforce• We have retained and attracted data services and IT firms to this region as the

supply of certified and graduate-level skills in key areas from big data to cyber security rises.

Logistics• Data services and IT intensive firms grow and are attracted as firms are able to

secure required bandwidth capacity, skilled workers and affordable quality of life.

Marketing/Communications• Rising regional, national and international visibility for this cluster is enabled by

strong cluster and cross-cluster communications, leveraging and positioning of the region’s distinctive features.

In three to five years…

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Our Region’s Transport & Logistics Cluster

Size: ~6,380 jobs in 569 firms Revenue: ~$1 billion in 2012 Structure: Specialized in warehousing &

trucking with four large firms Segments:

• Long-distance freight• Warehousing serving the manufacturing,

wholesale and the retail sectors• Rail support

Markets: Growing service to export markets, domestically trucking moved 68.5% of total:

• Trucking: Revenue is projected to grow at an average annual rate of 4.6% to $218.4 billion thru 2019.

• Warehousing: Forecast to grow an average of 2.6% annually to reach $22.8 billion in 2019.

• Rail: Expected to grow an annualized 1.9% to total $3.4 billion.

Transportation & Logistics Sales 2012

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Transport & Logistics Cluster Priority Action Plans

Organization: Smartport to Define & Promote Regional Logistics Assets

• Create a regional cluster organization to promote the region’s transport &

logistics assets to optimize growth, inform members of best practices, provide a

collective voice for regional challenges.

Communications: Promote & Match Logistics in Real-Time

• Create a marketing program to promote regional logistics assets and grow

revenues based on a local/regional inventory and an online mobile application to

search and match needs targeted to outside transportation logistics firms as well

as local firms.

Workforce: Skills Pipeline and Career Pathways

• Build and deliver training on a collaborative, cluster-basis having surveyed needs,

defined and confirmed competencies and job descriptions, with an dynamic

implementation plan of training, incentives, and career paths.

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Transport & Logistics Cluster Action Plan Impacts

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In three to five years…

Organization• Our region is now a visible hub of high-value logistics assets, applying best

practices, with organized support delivering strategic input advantages, such as the Northwest Bypass, a “Smartport” and Transport Oriented Development (TOD) projects.

Communications• We have fast and dynamic growth enabled by our ability to promote & match

users to logistics assets and our service inventory in real-time via mobile virtual information.

Workforce• Create a skills pipeline through career pathways developed to meet needs & retain

skills across the full range of requirements from trucking to third party logistics 28

Our Region’s Health Care Cluster

Size: 36,000 jobs (2012) Revenue: $3.6 billion (2012) Structure: Led by large health system

employers with growing independent practices:

• Via Christi Hospitals• Wesley Medical Center• Hutchinson Clinic• Veterans Health Administration• Newton Medical Center• Susan B Allen Memorial Hospital

Markets: Growing care also leads to emerging opportunities in:

• Biomedical instruments and assistive devices: Advanced composite materials in medical devices Innovations to assist blind and low vision individuals

• Clinical trials: translational research on care quality improvement

• Big Data: Health data systems and process management research and development including medical records and information exchange

Regional Health Care Sales 2012

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Health Care Cluster Action Plans

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Workforce• Hold regional work sessions to define strategic demand across all fields of

nursing and collaboratively align supply.

Innovation • Create a regional data collaborative to manage a shared healthcare data

system for purposes ranging from day-to-day care to PPO management and future innovation.

• Create a regional healthcare industry/university R&D consortia designed to take on strategic projects on a case-by-case basis.

Governance/Organization• Create a working group to help payers & employers adopt new protocols to

eliminate unproductive procedures and collaborate to influence public policies. • Create and apply technology tools to provide better health care for rural areas

by training healthcare providers, enabling delivery of the same level of care as in larger cities, and growing and attracting businesses to rural areas.

Health Care Cluster Action Plan Impacts

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In three to five years…■ Workforce

· Increased Nursing: Optimized supply of nursing skills to enhance the regional delivery of care as population and delivery modes change.

■ Innovation · Shared Data Improves Performance: Our data collaborative will leverage

KHIN to enhance our regional health system operations and relations, with focus on population features advancing regional performance.

· Innovation Grow regional Industry: Our regional healthcare industry-university R&D consortia will commercialize innovations to growth our regional health care industry.

■ Governance/Organization· Reduced Excess Protocols: Our adoption of new protocols to eliminate

unproductive procedures will lower costs and generate models that can be licensed and transferred to other regions.

· Improved Rural Healthcare Delivery: Our adoption of telemedicine to rural health facilities will reduces costs, enabling healthcare providers to minimizes rural emergency room admissions and deliver the right care.

CROSS-CUTTING INITIATIVES ACTIONS

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Cross-cutting Regional Action Plan Summary

Innovation: Regional collaborative innovation structures (partnerships, consortia alliances) for pre-competitive R&D, IP pooling/sharing, technology development and transfer

Workforce

• New degree programs in targeted areas to advance and apply innovation

• Communications at high school level to encourage career pipeline paths at all levels…must be linked to industry defined skills requirements

Logistics: Expand high capacity data (fiber bandwidth and switching) throughout the ten county region

Communications: Promote visibility of regional identity, assets and values to attract business and talent

Export Plan: Align existing tasks to support all clusters

Regional Crosscutting InitiativesAction Plan 1. Workforce

Objectives: Build a strong regional pipeline of prepared skilled & unskilled workers with needed soft and hard skills for each cluster

Tasks: • Assess Skill Demand vs. Supply Capacity: Create ongoing, meaningful

dialogue between cluster businesses and training schools, targeted industry surveys, to identify gaps/shortages/needs in degree and credential programs.

• Grow Career Awareness: Develop “career maps” showing paths available to students and future employees in each cluster and carry out marketing/branding of careers with options (child care access).

• Provide Work Experience: Launch competitive youth internships across clusters via a clearinghouse model that serves both small and large employers in each cluster.

• Identify & Apply Best Practices: Inventory industry cluster practices and strategies to determine best approaches to prepare skills.

• Communicate: Link to programs that inform industry of workforce resources for business and economic development

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Regional Crosscutting InitiativeAction Plan 2. Innovation

Objectives: Cross-cluster regional forum on innovation to

create regional innovation enterprise(s)

Tasks: • Identify the stakeholders (partners, companies)

• Form regional cross-cluster innovation committee to listen to

companies and shape new R&D and tech transfer initiatives.

• Organize by R&D themes: medicine, information tech, materials, etc.

• Link companies from existing Leadership Council, societies to plan.

• Benchmark innovation partnerships globally to define options.

• Seek input from partners on governance, structure, and forum focus.

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Regional Crosscutting InitiativeAction Plan 3. Logistics

Objectives: Deliver high bandwidth capacity throughout the 10-county region• Maintain and expand businesses, especially small to medium size• Respond to bandwidth needs of different clusters.

Tasks: • Define high capacity parameters. • Demand: Survey regional demand via focus groups • Benchmark other regions that have implemented capacity expansion.• Identify stakeholders necessary to expand regional capacity: users,

suppliers, intermediaries (public or private). • Draft a capacity expansion plan from crosscutting members based on

participation guidelines, e.g. requirements for each regional supplier to contribute a portion of the expansion

• Convene stakeholders to modify and buy-into plan and “sign-up” to support next steps.

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Regional Crosscutting InitiativeAction Plan 4. Communications

Objective: Inform, educate and promote our region internally and externally

Tasks: • Develop an internal communications plan with clusters.

Identify our target audience and shared messages on which to focus.

• Identify regional resources and partners for implementation. Define the communications people in our region.

• Develop an external communications plan focused on positioning our region as a whole and each cluster to target markets.

• Establish benchmarks and metrics to track results of communication efforts.

• Determine funding needs/budget, and raise funds for this regional initiative.

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Regional Crosscutting Initiative Action Plan 5. Export

Goal: Nurture an intentional export economy in the Wichita-South Central Kansas region that accelerates job growth, diversifies exports and improves global competitiveness and fluency.

Objectives:• Catalyze export growth at five aviation suppliers per year.• Diversify exports by fostering growth of non-aerospace exports by 30 percent in

five years and of services exports by 15 percent in five years.• Coordinate export assistance and promotional efforts to build a recognizable

export eco-system in two years.• Increase global fluency of the Wichita region by educating regional community

leaders and companies in at least two meetings annually.• Increase exports of small-medium sized companies by adding five new-to-export

non-aerospace companies annually, increasing the number of new markets entered per year, and introducing exporting as a growth strategy to 100 companies in five years.

• Integrate export plan to meet needs and action items from BREG cluster teams

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DEVELOPING REGIONAL PARTNERSHIP

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Implementing Our Cluster & Cross-cutting Strategies

We Have Started: The Collective BREG Partnership• Each BREG cluster strategy is a first set of Action Plans.

Launch Cluster & Cross-cutting Action Teams • We launch the Cluster and Cross-cutting Action Teams supported by Stewards

and the regional partnership.

Track Action Fulfillment• Each team meets on a quarterly or bi-annual basis to hear reports back to

provide input and help.

Monitor Performance• On an annual basis we need to generate and receive reports back that show

how we are doing overall through our cluster and cross-cutting action teams.

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Partnership Membership: A Market Matrix

Cluster-Output Delegates

Aerospace Oil & Gas Advanced Manufacturing Advanced Materials Transport & Logistics Data Services & IT Health Care Agriculture & Processing

Steward-Input Representatives

Workforce: K-12 (USDs), Training Agency (WA), Community Colleges, University (WSU)

Innovation: Universities (WSU), Research Institutes, Government Labs

Capital: SBDC/SBA Agencies, Banks, Investors, EDOs

Logistics: Transport Agencies, Cable/Fiber, Developers, Chambers

Resources: Water, Power, Waste Utilities Governance: Councils of Governments &

Individual City/County Agencies Quality of Life: Housing Developers &

Agencies, Healthcare Systems & Insurance, Recreation Services

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Partnership Management:Lean Intermediary with Broad Support

Management

Cluster Members

Economic Inputs

Stewards

Representatives from all input provider sources, private or public

• Workforce• Innovation• Finance• Resources Infrastructure

Two Co-Chairs fromEach of Eight Clusters

Cluster Network Members• Producers• Suppliers• Associations

Partnerships is anagreed upon existing or new entity with key operational support capabilities.

Lean structure supported by multiple levels of stakeholder membership (private & public), grants and contracts, including syndicated initiatives.

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BREG Strategy:Align Input Partners with Industry Clusters

Input

-----------Clusters

Workforce• Prepare• Advance• Renew(WFA, K-12, College, Univ)

Innovation• Discover• Develop• Deploy

(WSU)

Finance• Initiate• Expand• Renew(Banks, SCKEDC)

Logistics• Transport• Comm• Sites(Rail, Trucking)

Resources• Power• Telecom• Water(Utilities, agencies)

Govern• Tax• Regulate• Admin.(REAP)

Qual of Life• Housing• Healthcare• Recreation

Aerospace

AdvancedManufacture

Advanced Materials

Oil & Gas Production Transport

Data Services & IT

Agriculture Processing

Transport & Logistics

Health Care

Objective: Help Our Markets Work

Ensure economic input providers deliver what each cluster “driver” needs to grow

Enable this by “Convening the Marketplace”

• Demand: Key cluster organizations (associations, networks, chambers) bring key producers and suppliers to each cluster working group

• Supply: “Anchor” input agencies and institutions bring key providers to participate in each cluster working group

Partnership Structure: Coordinate Clusters (outputs) with Each Set of Providers (inputs)

44StarNet, LLC- Client Confidential- WSU-Contract #T15TT063

BREG is Real. Practical. Ongoing.

Join Us!• We are underway• Major scale-up this Fall• With all partners—clusters and input providers• On a continuous regional improvement process• Building our next generation South Central Kansas

economy • Helping our markets work using existing resources

in new ways.

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QUESTIONS & ANSWERSBREG is Ready to Move Ahead

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