Transcript Slide 1

Woodford Meeting
June 14, 2012
www.seveds.com
SeVEDS History and Makeup
Started over four years ago as a small group of people from across the
region looking to improve broadband and cell service
After many meetings it became painfully clear that the region’s
problem wasn’t lack of broadband, it was lack of economic
development
Understanding we couldn’t go it alone, professional assistance was
sought from Fairpoint Communication and their contractor Vital
Economies
Over the past 1 ½ years the SeVEDS organization has solidified. With a
Board of Directors, an Executive Committee Chaired by Bob Stevens.
The Board is comprised of individuals from the private and public sector
Theory and Practice
 Economic Development Theory and Practice has
changed from a focus on company recruitment to a
focus on asset-based community driven process
 In practice this means a change from relying on
professional practitioners (marketing and sales
people) to building community based interest
 The effect is that effort goes into educating people
about facts and developing strategies compatible with
community values
Practical Effects
 Strengths:
 Economic activity consistent with local values
 Companies that share local scale and goals
 Growth that builds on existing strengths of workforce
and infrastructure
 Vulnerabilities
 Takes time to grow commitment and knowledge
 Building companies is slower than importing them
 Training and attracting workforce is slower than drawing
it in
How long does it take?
 Windham started this process about five years ago
 Small group reacting to two bad snow winters and to
lack of broadband
 Chamber director
 Town manager
 Regional planning director
 Town planning director
 Interested citizen
 Regional development corporation director
What are the steps?
 Confusion and uncertainty
 We tried to define our ‘sense of urgency’ based on our
feelings and the data we could identify
 Frustratingly unsuccessful. We could not find the
words or facts to tell the story we knew was there
 Luck brought Vital Economy to our doorstep, but we
were ready
Necessary conditions
 A group committed to achieve the goals of change and
growth
 Willingness to admit we don’t know how to do what
has to be done
 Leaders: people willing to take the risk to say to their
peers, constituents, and the public that something has
to be done
Sufficient Conditions
 Leaders secure in their positions and willing to take
some risks
 A source of example, research, data and some money
 An open field or opportunity to act
SeVEDS Mission and Vision
Mission:
SeVEDS exists to reverse the economic decline of
our region.
Vision:
Southeastern Vermont will have an economy
that generates long-term growth and prosperity
and that improves our quality of life and
sustains our quality of place.
Asset Based Economic
Development
 A key asset is the group that builds the core team, and
then the core team itself
 SeVEDS Board is
 Majority private sector
 Mostly under 50
 Women strongly present
 Energetic
 Core team built around the key assets—quality of
place and life, key businesses and employers, long
term players
Not for Amateurs
 Economic Development is hard work built on
continually refreshed data
 Core team has to rely on others to do the data and
execute programs to achieve goals
 Requires a mature understanding of economic activity
 The economy is not a matter of opinion
 Favorite industries are not solutions
 Risk is endemic to the undertaking
Where are we now
 SeVEDS has some budget resources and a dedicated
staff person
 SeVEDS has strategies and working task forces
 SeVEDS is seeking additional resources to drive
forward on strategies
 SeVEDS has credibility
 Governor proposing college campuses
 State proposing significant investment in the area to
mitigate the potential closing of Vermont Yankee
Where do we go next
 We have to do the things we have pointed at
 We have to continue to expand the social capital we
have built in the Core Team
 We have to broaden the relationships we have with key
businesses and institutions, like the state colleges
 We have to resolve the relationship with our existing
RDC, Brattleboro Development Credit Corporation
Questions and
discussion
Is it really bad?
Is the region really in a decline?
What is the data?
2009 AVERAGE WAGE
Average wage
Windham
VT
ME
NH
MA
US
$ 38,820 $ 40,940 $ 38,550 $ 43,720 $ 52,710 $ 43,460
$55,000
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
Windham
VT
ME
NH
MA
US
We are just ahead of Maine in
many measures
Notice how high this is
Median Age
50.0
45.0
40.0
35.0
30.0
1990
25.0
2000
20.0
2009
15.0
10.0
5.0
0.0
Windham
VT
ME
NH
MA
US
Population Forecast
Age
Brackets
Population
Forecast
2010
2015
Projected Change
1990
2000
1990-2015
1990-2015
0-19
11,620
11,522
9,220
8,213
-29.3%
-3,407
20-44
16,848
14,479
12,398
11,933
-29.2%
-4,915
45-64
7,726
12,042
14,349
13,483
74.5%
5,757
65 +
5,394
6,173
6,889
8,175
51.6%
2,781
Total
41,588
44,216
42,856
41,804
Average Age
34.6
40
44.7
46.5
Implications:
(1)By 2015, there could be a workforce shortage of roughly 8,000 +/-.
(2)Increased demand for elders service.
(3)Commuters will fill the gap or work will disappear.
(4)Climate of innovation will be more difficult to build and maintain.
(5)Vicious cycle of declining younger population is difficult to reverse.
(6)This trend can accelerate if not addressed.
Source: US Census Bureau / Decision Data Resources
-8,322
8,538
Implication Analysis of
Population & Economic Change
Population and Job Growth Trend
Wage and Salalry Jobs
Non-Farm Proprietors
Population
50,000
Year 2000 was a
watershed
45,000
40,000
35,000
30,000
Ave. Wage & Salary vs Ave. Prioprietor Income
2006 Dollars
25,000
20,000
Ave. Wage & Salary
Ave. Non-Farm Proprietor Income
Population
Per Capita Income
15,000
10,000
50,000
5,000
45,000
2006 Dollars
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
0
Proprietors' Share of Total
(Income vs. Employment)
Non-Farm Proprietor Share of Jobs
45,000
40,000
40,000
35,000
35,000
30,000
30,000
25,000
25,000
20,000
20,000
15,000
15,000
10,000
10,000
5,000
5,000
2015
2012
2009
2006
2003
2000
1997
1994
1991
1988
1985
1982
1979
1976
1970
0
1973
-
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2015
2012
2009
2006
2003
2000
1997
1994
1991
1988
1985
1982
1979
1976
1973
More small businesses, less income
1970
Share of Total
Non-Farm Proprietor Share of Total Income
50,000
Source: BEA
Percent Contribution to Total Personal Compensation
US 1990
VT 1990
US 2000
VT 2000
US 2009
VT 2009
Increasing reliance on
Transfer Payments as a
percentage of Total
Personal Compensation
implies that fewer people
are directly engaged and
reliant upon the regional
economy for their
livelihood.
We are earning
less of our living
Windham 1990
Windham 2000
Windham 2009
Source: BEA
Percent Contribution to Total Personal Compensation
US 2000
VT 2000
US 2009
VT 2009
Digging into the mix of sources of Total
Personal Compensation we further find
that the percentage of compensation
that comes from the Private Sector
compared to the Public Sector
continues to decline in Windham
County. This is moving in the opposite
direction from the US and State metric.
This implies that there is a lack of
economic risk taking behavior
necessary to drive a vibrant innovative
regional Economy.
Windham 2000
Windham 2009
Note the sizeable
proportion of
public sector jobs
Source: BEA
2009 Educational Attainment of Region
EDUCATIONAL ATTAINMENT 25 YEARS AND OLDER
40.0%
We are highly educated
35.0%
30.0%
We lag behind in
Technical Skills Training
Windham
25.0%
VT
ME
20.0%
NH
15.0%
MA
US
10.0%
5.0%
0.0%
High School Graduate
Source: US Census Bureau
Associates Degree
Bachelor's Degree
Graduate Degree
2009 Median Earnings by Educational Attainment
$60,000
$55,000
2009 Median Annual Earnings
$50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
No HS Diploma
HS Graduate
Bachelor's Degree
$27,327
Some College or Assoc
Degree
$26,855
WINDHAM
$21,269
VERMONT
$20,698
Cheshire, NH
Grad or Prof Degree
$32,518
$42,316
$27,231
$31,374
$38,837
$50,090
$24,866
$30,452
$31,653
$39,857
$53,647
Sullivan, NH
$21,654
$28,480
$32,972
$42,523
$52,721
Franklin, MA
$21,604
$31,254
$34,869
$38,024
$47,570
Hampshire, MA
$23,505
$31,703
$35,248
$42,480
$55,568
Median Earnings by Educational Attainment shows the dramatic impact of job loss on wages in SeVEDS.
College grads earn 18% more in Cheshire County, NH and 23% more in Hampshire County, MA.
Source: US Census Bureau
SeVEDS Innovation Climate
Windham County
Vermont
Innovation Index components:
1. Human Dynamics 30%
2. Economic Dynamics 30%
3. Productivity & Employment 30%
4. Economic Well-Being 10%
New Hampshire
US = 100
Innovation Index demonstrate the need for SeVEDS to develop an effective innovation environment and
strategy. This requires that SeVEDS capitalize on its indigenous assets, reverse demographic trends,
develop the proper mix of workforce skills, and invest in an innovation ecosystem.
Source: US EDA
Regional employment by sector
and growth
We want regional industry sectors in this quadrant
– growing nationally and with a higher
concentration of regional jobs
For example: Information sector is
growing nationally but we have a lower
then average % concentration of regional
jobs in this sector.
This data results in a
Shared Sense of Urgency
Low wages, a rising cost of living and limited job opportunities create a
disconnect between the skills needed by employers and the skills held by
the workforce.
This leads to a widely shared sense of economic insecurity resulting in
many Vermonters looking for economic opportunity elsewhere, and few
choosing Vermont as a place to live and conduct business.
Now what?
 Identify 5 year goals 
 Develop initial objectives and strategies
 Regional review and input – in process
 Start working on implementation and
funding plans – in process
Goals and Metrics
Goals:
 End Population Decline 2009 = 42,605 est.
 669 new jobs @$ 43,833 and 446 new jobs @$39,848 (NNE Average






Wage)
Improvement of 4,464 jobs by $5,000/yr.
$69M new wages $141M in new GDP
Reach Regional GDP of $2.8B
Increase Median Annual Income for Associates/Some College from
$26,855 to $32,000
Increase Median Annual Income for Bachelor’s Degree from $32,518 to
$39,000
Improve the Ratio of Net Earned Income to Total Income from .566 to
.65
 Create Operational and Fiscal Sustainability Plan for SeVEDS by
December 2011
 Increase the Size and Quality of the Workforce (1-
8)
Objective 1.
Create Operational and Fiscal Sustainability Plan for SeVEDS by December 2011
Create Legal SeVEDS Entity
• Create Board of Directors 
• Incorporate SeVEDS as a Non-Profit Affiliation Agreement with BDCC 
Outline multiyear budget and fundraising needs
• Hire SeVEDS staff person to provide organizational and funder planning
support. 
• Prepare 3-year budget Develop and implement private fundraising campaign
• Develop and implement public fundraising campaign
Develop Comprehensive Economic Development Strategy for submission to EDA
• Complete EDA Technical Assistance Grant 
• Create Action teams to identify and support implementation of priorities and
projects including VY closure, work force, redevelopment, and flood
• Create CEDS plan
Objective 2: Increase the Size and Quality of the Workforce (1-8)
Develop a Workforce Center of Excellence Collaborative between providers and
users of workforce development services that identifies and connects existing
workforce development assets, defines future workforce requirements and gaps by
September 2012
Key Metric: Recommend Preferred Workforce Development Collaborative
Plan by December 2012
• Map workforce development assets and define gaps to be filled
• Build strategic relationships between assets
• Define 3 to 5 Career Pathways that will meet the needs of the priority
industries
• Identify workforce development Best Practices appropriate to the region
• Recommend Preferred Workforce Development Collaborative Plan by
December 2012
Objective 2: Increase the Size and Quality of the Workforce (1-8)
continued
Increase 20-44 age group employment by 20% in five years
Key Metric: By January 2012 Define Top 3 – 5 Industry Clusters with the
potential for increasing high-value jobs within the next five years
• By January 2012 Define Top 3 – 5 Industry Clusters with the potential for
increasing high-value jobs within the next five years
• Create Action Teams in Q1-2012 around Clusters to identify Strengths
(Assets), Weaknesses, Opportunities, Threats and value chain gaps
• Prioritize at least 2 Clusters for Opportunity Analysis Research that will
Action 3.2.D – define at least 2 Niche Markets per Cluster for
implementation by October 2012
• Develop Immigration Attraction Strategy by April 2012 focused on
doubling the percentage of foreign born population in the region from
3.5% to 7% by 2016
• Develop a Highly Skilled Professionals recruitment and retention
strategy
Objective 2: Increase the Size and Quality of the Workforce (1-8)
continued
Increase Associate Degrees/Some College and Technical Certificates
Key Metric: 18-24 year old age bracket from 38% (1495 persons) to 47% (1884
persons) for net increase of 389 persons by 2016
• 18-24 year old age bracket from 38% (1495 persons) to 47% (1884
persons) for net increase of 389 persons by 2016
• Identify Industry Sectors with critical skill needs
• Work with Secondary, Post-Secondary and Vermont State College
System and the broader region to develop education programs to
meet industry needs
• Partner with UMass
Identify public and private resources to support a sustainable
implementation of workforce development plan
Objective 3: Increase population proportion of 24-44 year-olds from 23% to
28% of total population by 2017 (1)
KBE Strategy connecting the SeVEDS region to the NE Next Generation
Knowledge Corridor
Develop a Livable Communities Strategy by 2014
Leverage Tourism and Second Homeowner Assets to attract 1,000 young families
Develop a coordinated regional marketing plan to promote SE Vermont as the
best place to live, place, and work.
Action Plans for Objective 4 Strategies will be developed during Phase II
Objective 4: Create an Entrepreneurial Environment (1-8)
Define and implement an Innovation Ecosystem within 3 years
• In 2012, assess regional innovation and entrepreneurial climate based upon best
practice criteria (Innovation Index): facilities, governance, business services, access to
capital, business networks, culture, R&D capacities, etc.
• Convene an Action Team to use the Innovation Index for SeVEDS developed in 12.a to
address complex regulatory and other concerns with State and Local jurisdictions.
• Assess business needs and set a goal to assist xx existing businesses and XX new or
potential businesses each year.
Create a Young Professionals Group (YPG) to support and attract 20-44 year old professionals
and workers
• By Q4-2011 identify and evaluate strengths and weaknesses of existing young
professional networks and social organizations
• Engage a representative group of existing younger individuals (especially 18-35 yrs. old)
in the community to assess interests and the role of young professions in the region’s
economic future
• As a result of Action 13b recommend a set of activities and actions to be adopted
supporting both the YPG and entrepreneurial climate of the regions, such as: business
seminars, speakers, business plan competitions, investment forums, social events, etc.
Objective 4: Create an Entrepreneurial Environment (1-8)
Create a sustainable start – up funding program by March 2013
• Define and implement a plan to benchmark and track new businesses
looking for funding by December 2012
• Define and implement a plan to benchmark and track new jobs created by
December 2012
• Create a mentor/investor network plan utilizing especially the services and
assets of 44-75 year olds by December 2012
• Take advantage of opportunities under the federal crowdfunding bill (if
passed)
• Create marketing plan including social media to package and publicize
local funding sources, mentor networks, incubator spaces, etc. Reach out to
UMass/Amherst area via recruitment events, advertising, etc.
• Identify Incubator Space
Objective 4: Create an Entrepreneurial Environment (1-8) continued
Recognize and blend Quality of Place characteristics and concepts into the SEVEDS
strategies
• Establish a group of relevant regional stakeholders to review Quality of Place
concepts and index methodologies to craft a set of appropriate regional
metrics
• Develop and conduct several community presentations describing the role
and critical components of Quality of Place within the SeVEDS strategy
• Develop internal (within Windham Region) and external (out of Windham
Region) marketing plan
Facilitate bringing challenged properties in the Windham Region back into
purposeful use
• Aggregate relevant environmental, financial and land record information for
qualified interest groups.
• Aiding qualified individuals and/or groups in purchase and rehab planning
consistent with regional, economic, environmental and town planning.
• Create a mechanism to facilitate intermediary ownership if there are no
other alternatives
• Identify and work with redevelopment efforts underway
Objective 4: Create an Entrepreneurial Environment (1-8) continued
Expand Percentage of the Regional Economy coming from the Global Economy by
leveraging businesses w/global connections seeking higher skilled workers in high
wage jobs.
• Create a database of businesses with international relationships
• Map international, linguistic, cultural, and technical knowledge assets
• Create a Global Marketing plan that links with International trade
marketing tools and programs to expand markets and attract new business
to leverage regional assets
• Define three (3) Global Niche Markets having value chain gaps that can be
filled by regional assets
• Identify workforce skill gaps that might be filled by international workers
coming to the region and create an worker recruitment plan
• Identify potential needs of international workers and develop a plan to
meet those needs
Objective 5: Plan for a Post VY Economy (1-5)
Establish a sustained effort to cope with and recover from the closure of Vermont
Yankee
• Build a broad based steering committee to guide planning and action on
economic and social impacts.
• Conduct Substantial study of other nuclear plant closings and other plan
shutdowns and find major learning’s - WRPC
• Establish Site decommissioning, deconstruction, clean up, restoration
and reuse planning group:
• Identify potential impacts from VY closure – completed November 2011.
Major categories include Jobs, GDP declines, Real Estate prices decline,
Human Capital, Taxes
• Identify possible mitigation, barriers and means of overcoming barriers –
in process
Objective 6: Plan, Track and Participate (1-8)
Maintain list of issues and sectors for development of additional objectives
and strategies
• Energy Prices, Broadband and Cell expansion, Disaster preparedness,
Transportation Infrastructure, Railroads, Regional Plan