Transcript No Slide Title

CONNECT SI
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 2: Indigenous Resources &
Industry Asset Mapping
December 28, 2007; revised Feb 15, 2008
ViTAL Economy Alliance
Frank Knott, Lead & Master Guru; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
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©2007 ViTAL Economy, Inc.
Table of Contents

EXECUTIVE OVERVIEW: the Big Picture & Importance
of Change in Southern Illinois

READINESS ASSESSMENT (RA)
1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment Necessities
2.01 Why We Map
2.02 Indigenous Resources &
Industry Maps
2.03 SI’s Unique &
Leveragable Resources
4. Climate of Innovation, Incubation & Entrepreneurship
5. Southern Illinois Competitiveness
6. Regional Perspectives
7. Framework for Success
APPENDICES
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©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
SI has significant & unique assets that position it to take full advantage of the trends
discussed in Chapter 1 — this allows SI’s economy to grow from within rather than
spending precious resources on industry attraction … “sow your own to grow your own”
Chapter 2:
Indigenous Resources &
Industry Asset Mapping
2.01 Why We Map …………………………………. 4
2.02 Indigenous Resources & Industry Maps …… 9
2.03 SI’s Unique & Leveragable Resources ……. 13
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©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Asset Mapping is an essential step in the ViTAL Economy Process — providing key
insights for a region to learn how to recognize and value what makes it unique.
Chapter 2:
Indigenous Resources &
Industry Asset Mapping
2.01 Why We Map
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©2007 ViTAL Economy, Inc.
Asset Mapping — Why it is Essential
2.01 Why We Map

Know where you are
• Learn what makes us unique & that
SI is something special

See where you have been

Know where you are going
• Discover what previously competing
communities within SI have in
common

Find the best route

Find an alternate route

Determine what to avoid

Make connections

Determine who to visit with
• Bring to light the Region’s
collaborative and marketable
opportunities
• Discover our ability to compete
without trying to become something
we are not
• Note: We cannot effectively compete
without collaborating & connecting
assets across SI
“Do what you can, with what you have, where you are”
- Theodore Roosevelt
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©2007 ViTAL Economy, Inc.
Connect SI – Overall Logic Flow
2.01 Why We Map
Asset Maps help
us understand
what makes SI
unique!
Opportunity Realized
Connect the Dots
Barriers
Local Opportunity
Global Opportunity
Innovation
Industry/State
Who
We
Are
Knowledge
Best Practices
Global Innovation
The foundation of
sustainable economic
growth is building
on what makes a region
unique, NOT copying what
others are doing
Local Innovation
Barrier Strategies
Short/Long Term Wins
Measures of Success
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©2007 ViTAL Economy, Inc.
Weaving Assets into Opportunities
2.01 Why We Map




In the ViTAL Economy approach, Indigenous Resources are
“interwoven” with existing and emerging opportunities to form
unique bonds
Enhances “connectivity” amongst existing businesses to
strengthen the competitive position of SI — in a global
economy instead of competing against each other
Enables SI to leverage unique/remote assets that offer valueadded rather than low-margin commodity products &
services
By weaving together SI COIs’ indigenous and sector
resources, critical mass can be achieved and global
opportunities captured

Prior to linking these assets together, everyone had a piece
of the value-chain, but few had the whole chain

Once SI understands its collective strengths, it can then
connect those strengths to global niche market opportunities,
which have heretofore not been captured by SI
“Most large markets evolve from niche markets”
- Regis McKenna, Silicon Valley guru
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©2007 ViTAL Economy, Inc.
Asset Maps Focus Opportunity Analysis
2.01 Why We Map
• Enables SI to define how indigenous resources make it unique and special
• Identifies resources at economic sub-regions to be leveraged across counties
• Helps to filter, prioritize and focus competing economic strategies
• Defines what industry clusters can be home grown based on local assets
• Identifies industry value chain assets to be connected across SI Region
Map Indigenous Assets
Map Industry Assets
• Natural
• Human
• Knowledge
• Cultural
• Geographic
• Excellence
• Infrastructure
• Government
• Agriculture
• Healthcare
• Tourism
• Energy
• Manufacturing
• Education
• KBE Firms
• Logistics
See: RA Chapter 2
+
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=
Priority industry
clusters with the
best ability to
deliver economic
growth goals
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
The four Regional Communities of Interest (COIs) — Greater Egypt, Greater Wabash,
Southeastern, and Southern Five produced extensive Asset Maps of both their Indigenous
Resources and by major Industry (both existing & emerging); these are summarized here
Chapter 2:
Indigenous Resources &
Industry Asset Mapping
2.02 Indigenous Resources & Industry Maps
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©2007 ViTAL Economy, Inc.
Asset Mapping Was Done by Each COI
2.02 Indigenous Resources & Industry Maps
Connect SI
includes 4
Sub-regions:
GW
Southern Five
Union, Johnson,
Alexander, Pulaski,
Massac
Southeastern
GE
Pope, Hardin, Saline,
Hamilton, Gallatin
SE
Greater Wabash
White, Wayne,
Edwards, Wabash
Greater Egypt
S5
Randolph, Perry,
Jackson, Jefferson,
Franklin, Williamson
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©2007 ViTAL Economy, Inc.
Asset Mapping: Indigenous Resources
2.02 Indigenous Resources & Industry Maps
• Double-click on the table below to open the Excel spreadsheets that detail SI Indigenous Resources from the Milestone 2
Asset Mapping Process — these maps will provide an important foundation for all Industry Cluster efforts (Phase 2)
• Use the scroll bars to view additional rows & columns
• Additional opportunities and resources may be added to the map as regional stakeholders use it as a dynamic tool to
map the assets of your evolving economy
S5
X
Region
GW
SE
GE
Category
General Resource/ Feature/ Asset
Specific Resource/Feature/Asset
Geographic
Riv ers sy stem
Ohio Riv er
Geographic
Riv ers sy stem
Mississippi Riv er
Geographic
Riv ers sy stem
Wabash Riv er
Geographic
Riv ers sy stem
Joining of the two great riv ers (Ohio/ Mississippi)
X
X
X
Geographic
Geographic
Geographic
Riv ers sy stem
Riv ers sy stem
Riv ers sy stem
Adjacent Riv er Sy stem
Kaskaskia Riv er
Little Grassy Riv er
X
Geographic
Geographic
Geographic
Geographic
Geographic
Geographic
Geographic
Geographic
Lakes
Lakes
Lakes
Lakes
Lakes
Lakes
Lakes
Lakes
Horseshoe, Mermet, Egy pt
Dutchman - top f ishing
Lake of Egy pt
Rend Lake (2nd largest manmade in Illinois; Marina, Conf erence Center)
Kinkaid Lake
Dev il's Kitchen (trout)
Mirror Lake
Lake Murphy sboro
X
X
X
X
X
X
X
X
X
X
X
X
Indigenous Resources: Natural; Human; Knowledge; Cultural;
Geographic; Excellence; Infrastructure; Government
Source: COI Asset Mapping Teams
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©2007 ViTAL Economy, Inc.
Asset Mapping: By Industry
2.02 Indigenous Resources & Industry Maps
• Double-click on the table below to open the Excel Spreadsheets that inventory SI resources by industry during the
Milestone 2 Asset Mapping Process — these maps will provide an important foundation for specific Industry Cluster
efforts (Phase 2); use the scroll bars to view additional rows & columns
• Additional opportunities and resources may be added to these maps as regional stakeholders use it as a dynamic tool to
map the assets of your evolving economy
Region
S5 SE GW GE
X
Sector Component or
Participant
Current Status
Primary Threats
Product
X
Corn
X
Soy beans
X
Milo
Cost of Inputs / soil productiv ity / Weather & Disease / crop
improv ing; export & domestic demand
insurance only insures against total destruction not income /
strengthening corn prices / additional slowing ofStrength of Export Demand important as corn struggles to keep up
corn as f eed due to high prices
w/ domestic demand f or ethanol production
corn pricing af f ects local production / soil productiv ity / Weather &
local producers go where the $ goes - shif ting to
Disease / crop insurance only insures against total destruction not
corn giv en current corn pricing / export &
income / Strength of Export Demand and production by other
domestic demand uncertain
countries
Declining - Stable at Best / produce as a last Market Issues - not ev ery market takes milo / corn pricing af f ects
resort
local production
X
Cattle
X
Horses
Land Prices especially with $4 corn / Higher Feed Prices / need to
adjust production downward to bring prices up / small prof it
Small Margins especially with $4 corn - f eedingmargins hurting small producers / competition with corporate
as cheaply as possible
markets/growers / lack of packaging plants market structure / Gov t
Gov ernment regulations / Shawnee National Forest trail decisions /
Improv ing - f or recreational use / poor selling horse slaughter bill / slaughter plants closing / consideration as a
market
companion animal
Peaches
Steady - no decline in acreage used f or
production / per Rendleman Orchards improv ing
Labor is the biggest threat Illinois' Adv erse Ef f ect Wage Rate is
$9.21 (KY is $8.24, AR, LA & MS are at $7.58) / Weather &
Disease / per Rendleman Orchards primary threats are labor, price,
weather
X
X
Apples
Decline in acreage used f or production
External Competition is an issue / Labor (Adv erse Ef f ect Wage
Rate) / per Rendleman Orchards primary threats are labor, price,
weather & global competition
X
Tomatoes
Declining to stable / decline among smaller
operations, but stable in large producers
Labor intensiv e / Labor is the biggest threat (Adv erse Ef f ect Wage
Rate)
Industries: Agriculture; KBE; Energy; Education; Tourism; Logistics,
Transportation, and Distribution; Forest Products; Manufacturing
Source: COI Asset Mapping Teams
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©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Chapter 2’s Summary Section takes some of the most promising Opportunities identified
in Chapter 1 and couples these with the most unique and leveragable SI Assets; however,
there are barriers that must be overcome (aka “Challenges”) — these will be discussed
more thoroughly in Chapter’s 3, 4, 5 and 6
Chapter 2:
Indigenous Resources &
Industry Asset Mapping
2.03 SI’s Unique & Leveragable Resources
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©2007 ViTAL Economy, Inc.
What COI’s Learned from Asset Maps
2.03 SI’s Unique & Leveragable Resources


SIU’s 60+ year history with students from over 100 cultures positions SI to access
expanding global markets which are seeking access to U.S. markets
SIU’s research centers of excellence in energy, environment, materials and
neuroscience perfectly align with global priorities for market growth

SI has a more significant base of workforce development and research university
assets to respond to the 10 million worker shortage than any rural economy in the U.S.

There are more innovation, incubation and entrepreneur assets in SI than anyone
imagined; this positions SI to build an Innovation Ecosystem fueling KBE growth

Intermodal logistics assets and heartland location align with the redevelopment and
expansion of inland waterway logistics connecting to Midwest logistic gateways

Regional tourism assets are aligned with authentic and active lifestyle tourism trends
involving 50-80 million annual tourists in the U.S.

SI has the right mix of assets for attracting the financially independent active retirement
demographic, which is fueling the growth of senior living opportunities

SI has a significant base of diversified alternative and traditional energy assets, which if
collaboratively organized, provide a basis for a diversified energy sector
Asset Mapping proves SI already has what it needs to drive its own economic destiny
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©2007 ViTAL Economy, Inc.
Opportunities, Link to Regional Assets & Challenges
(1 of 4)
2.03 SI’s Unique & Leveragable Resources
Opportunities
Globalization: The World is Flat
•
•
World economic growth rate = 4X’s the
rate of SI
SI can leverage its central location and
inter-model transportation assets to
become a logistics service center
eCommerce & Connectivity
•
eCommerce is growing 6x’s faster than
the U.S. economy

Apply connectivity applications to
improve community efficiencies

Develop connectivity strategies to
support other economic and market
opportunities
Links to Regional Assets
•
Proximity: 8 hour drive time to over 2/3 U.S. market
•
I-57, Rt12, I-24, I-13, CN Rail, Ohio and Mississippi waterways
•
SIDEZ, USDA and others conducting logistics and
transportation research and opportunity analysis
•
Large existing logistics business base in all four sub-regions
•
Airports: Williamson County Regional, Mt. Vernon, Sparta,
Jackson County, Pinckneyville
•
SIUE International Trade Center
•
•
Challenges
•
Weak regional understanding of
how to tap the global market
•
Historically, logistics and
transportation centers have been
on other interstates
•
Highly fragmented and competitive
logistics and transportation
industry
Hundreds of SI unique niche products and services;
artisans, wineries, graphic design and marketing
•
Low broadband coverage and
penetration rates in the region
Network Provider COI with over 30 providers working
together towards clear goals
•
Limited understanding of
eCommerce systems and strategies
•
SIU and SI’s Community College System
•
Limited knowledge of connectivity
applications to bring efficiencies
•
SIU School of Health Sciences
•
77 million baby boomers present an
affluent market
•
Heartland, SIH, Good Samaritan and other healthcare
institutions
Access to healthcare is perceived
as limited and low in quality
•
75% of the countries wealth is residing
with active adults desiring many of the
attributes of SI
•
Very knowledgeable and dedicated healthcare administrators
•
Center for Rural Health
•
Mild climate
Small amount of existing
knowledge and facilities in the
region supporting senior living
alternatives
Specialty healthcare products & services
•
Low cost of living
•
•
•
Nutraceuticals
•
Boomers going rural
•
Linking education assets for life long
learning opportunities
•
SIU and SI’s Community College System
SI understanding of senior living
opportunity is limited to lower
income seniors & assisted living
lifestyles
•
•
Rural living; 120% increase 1970-1996
Providing amenities sought by
retirees
Senior Living
•
•
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©2007 ViTAL Economy, Inc.
Opportunities, Link to Regional Assets & Challenges
(2 of 4)
2.03 SI’s Unique & Leveragable Resources
Opportunities
Links to Regional Assets
Global Workforce Opportunities
•
Man-Tra-Con, other workforce development agencies
Transform SI into the “corporate casting
agent for the 21st century”
•
SIU international students
•
•
•
•
•
•
Leverage over 60 years of SIU with students
from over 100 cultures
Embrace workers in their 50’s and 60’s
create a climate of “freedom to work”
Increasing cost of energy driving new
technologies for older forms of material
•
Coal mining, clean coal technologies
•
Regional energy strategies
•
Alternative energy innovations
•
Transportation fuels sources
•
SIU Energy Center of Excellence
KBE and Innovation
•
Knowledge drives jobs & wealth creation
•
90% of all new jobs created by companies of
50 employees or less
•
•
•
•
Economic opportunity perceived as
local and not global
Large number of SIU graduates with workforce
development degrees
•
Limited understanding and history of
immigrant workers
Knowledge and expertise for developing countries in
agriculture, coal mining and manufacturing
•
Culture of dependency on government
and corporate welfare
•
Retraining programs and facilities not
focused on new economy
•
Political and policy decisions regarding
coal utilization
•
Energy projects very high in capital
cost
•
Converting coal to electric power
cleanly and cost effectively
•
Belief that job opportunities are with
large manufacturing companies, not
startup businesses
Higher than average % of 19-24 age bracket
in the region – SIU & College students
Energy & Mining
•
Challenges
•
Significant coal deposits
•
SIU Coal Research Center
•
Robust energy knowledge base in the region
•
Dixon Springs Agriculture Research Center
•
Large clean water supply
•
Underground abandoned mines
•
Proximity: 8 hour drive time to over 2/3 U.S. market
•
Energy Co-ops; knowledge, generation and
transmission
•
SIU R&D: Energy and Environment, Biotechnology,
Material Technology, Neuroscience
•
Coal mining related knowledge; safety, technologies
•
Incubators; Dunn Richmond Center, West Frankfurt,
Mounds and multiple vacant buildings suitable for
business incubators
•
•
Limited start-up business financing
•
SIU Coal Research Center
•
Weak tech transfer system with SIU
•
Dixon Springs Ag Research Center
•
•
Community Colleges
Lack of connection of resources to
support the entire region
•
State Crime Lab
•
Not enough business incubator
facilities
Link SIU research to business incubator,
expertise and capital
Global R&D collaborations
Higher than average % of 19-24 age bracket
in the region – SIU and College students
— 16 —
Entrepreneurship not seen as a “real
job”
©2007 ViTAL Economy, Inc.
Opportunities, Link to Regional Assets & Challenges
(3 of 4)
2.03 SI’s Unique & Leveragable Resources
Opportunities
Tourism
•
International tourism will double by 2020
•
Eco, culture, history and adventure tourism
•
Recreational tourism focusing on SI unique
qualities
Links to Regional Assets
•
Sparta World Shooting Complex
•
•
Shawnee National Forest and other natural
environment sites
Lack of experience in collaborative
regional tourism marketing
•
Overall poor quality and quantity of
lodging facilities — except in Metropolis,
Carbondale & Marion
•
Low quality accommodations and
facilities in Shawnee National Park and
other State Parks
•
Protectionism within community tourism
organizations
•
Historically, poor tourism reputation of the
region
•
Weak on-line regional presence
•
Low community respect & self-esteem for
properties and infrastructure
•
Belief that good healthcare is only
available in out-of-region urban centers
•
Historically not recognized as a
“knowledge region”
•
Limited entrepreneur culture and support
systems
•
Lack of community comprehensive
planning, zoning standards or building
code
•
Outfitters and hunting lodges
•
Vast historical knowledge of area
•
Extensive historical sites in SI
28% increase in arts and culture industry
including community events
•
B & B Association
•
Wine and Art Trails
Majority of tourism bookings being made
on-line
•
River-to-River Trail
•
Number of unique existing community festivals
attracting 100,000+ guests
•
Numerous museums and art galleries
•
Mild Climate
•
Low cost of living
•
Proximity to urban centers
•
Shawnee National Forest
Recreational services and products,
tourism, attractive communities
•
Rend Lake
•
Multiple State Parks
•
KBE creation and attraction
•
Multiple trails for biking and hiking
•
Visual and creative arts
•
Wineries and arts
•
SI still has a number of small towns with a
large amount of open spaces
•
Locally grown food products linked with farmers
markets
•
Proximity to natural environment amenities
•
Proximity to major research university
•
Locally grown food will become a $7 billion
industry by 2011
•
Robust Community College system
•
Abundance of agricultural land and knowledge
•
•
•
$300-$400 million increase in SI tourism
industry
•
4 hours drive time from 11.3M potential
customers
Livable Communities
•
•
Microprenuers & KBE workers are mobile
and attracted to active rural recreational
lifestyles
Challenges
— 17 —
©2007 ViTAL Economy, Inc.
Opportunities, Link to Regional Assets & Challenges
(4 of 4)
2.03 SI’s Unique & Leveragable Resources
Opportunities
Logistics, Transportation &
Distribution
•
SI is in a prime geographic location to seize the
logistics and distribution markets
•
Increasing cost of fuel makes waterborne
transportation is attractive; Marine transportation
services
•
•
•
70% increase in U.S. trade volumes from 1998 –
2020
10 nillion TEU (twenty-foot equivalent units for
intermodal shipping) East-West trade deficit per
year
Links to Regional Assets
•
Proximity: 8 hour drive time to over 2/3 U.S.
energy market
•
Full compliment of transportation
infrastructure; interstate highways, airports,
railways, rivers
•
Strong existing base and experience of barge
and river transport companies
•
SIDEX logistics and transportation study
•
Large existing trucking industry in SI
•
Mississippi & Ohio Rivers
•
Export based manufacturers
•
CN Rail
Challenges
•
The rapid growth in the logistics
industry has been occurring outside
of the region
•
Limited East-West rail systems
•
Weak collaboration within and across
industry sub-sectors
Increasing cost of fuel making waterborne
transportation more economical
— 18 —
©2007 ViTAL Economy, Inc.
We See A Bountiful Southern Illinois
2.03 SI’s Unique & Leveragable Resources
Vital Economy’s View:
— We have fallen in love with SI; we see it as the Land of the “Garden of the Gods” —

Prime central North American location in close proximity to over 11 million people

425,000 population produces a $17.6 billion economy — equivalent to a major metro-area

Multi-directional Interstate highway, waterway and rail road infrastructure

Major research university, robust Community College System and workforce development
assets

Modern and growing healthcare facilities

Large National Forest and numerous unique tourist attractions

Extensive mineral, agricultural and unique natural environmental assets

Rich soils, mild climate and abundant water resources

Numerous innovative and leading industry companies and an entrepreneurship spirit

Special, welcoming, talented & caring people who want better for their families

Young & old who see SI for the treasure it is, and desire stewardship that reflects its value
ViTAL Economy Conclusion:
Southern Illinois has more assets at its disposal than any other
region the Team has advised in 15 years
— 19 —
©2007 ViTAL Economy, Inc.