Looking Ahead - The New North
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Transcript Looking Ahead - The New North
The New North:
From Concept
to Reality
How it Got Started
The Fox Valley WDB –
“What’s happening?”
The New North
Measuring Up
Looking Ahead
Moving Ahead
Networking Welch & Winters
The Bay Area WDB joins in
The project evolves
The concept of a regional
plan emerges
The Plan is Launched!
October 2004
The New North
Measuring Up
Looking Ahead
Moving Ahead
Key players/leaders emerge
The Governor speaks
The Keys to the New North
Private sector leadership
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Money
A plan
A professional staff
Buy in
Is the New North plan a
success?
• Basis for forming the New North Economic
Partnership and all that followed
• Outside assessment – “We want a plan like
the New North plan.”
• Stimulated economic development thinking
within the New North region
• Led to other regional plans Centergy, Grow
North, UP/Wisconsin Border Region
Regional Organization
and Thinking
MI
WI
MN
IA
UP/WI
Border
Region
Measuring Up:
What has happened
and where are we?
Key Strategies
The New North
Measuring Up
Looking Ahead
Moving Ahead
Leverage the regional brand
Attract, develop and retain
diverse talent
Advance educational attainment
Target growth opportunities
Build entrepreneurial climate
and small businesses
Incorporate sustainability
Key Events Since 2004
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Formation of the New North Inc.
A strategy to work the plan
Hiring a first rate executive
director
The economic summits
The branding initiative
Targeted initiatives
Some Leading Edge
Thinking and Action
The Wind Energy Cluster
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Sustainability and
Green Jobs
Cellulosic BioFuels Studies and
Plans
Looking Ahead:
The New Normal
Economy
Perspective &
Attitude Adjustment
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There
T
is and will be bad
economic news for at least six
more months.
The most successful Wisconsin
industries – paper and dairycame out of economic crisis
Many Wisconsin industries were
initial failures - paper
The Last 11 Recessions
Duration of U.S. Recessions in Months
Dec 07 - ?
Mar 01 - Nov 01
Jul 90 - Mar 91
Jul 81 - Nov 82
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Measuring Up
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Jan 80 - Jul 80
Nov 73 - Mar 75
Dec 69 - Nov 70
Apr 60 - Feb 61
Aug 57 - Apr 58
Jul 53 - May 54
Nov 48 - Oct 49
0
5
10
Source: The National Bureau of Economic Research
15
20
25
What makes this recession
different from the last five
major recessions?
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1. 28 years since last major
downturn
2. First recession experience for
1+ generation(s)
3. The multiple sources of
economic trouble & risk
4. The speed and depth of the
economic downturn
5. The first major recession in
the age of the Internet
U.S. Housing Starts
The New North
Measuring Up
Looking Ahead
Moving Ahead
2003
2004
2005
2006
2007
2008
1.4 million
1.85 million
1.95 million
2.07 million
1.81 million
.95 million
2009
.55 million
Housing = 4% GDP
Normal Replace/
Growth 1.3 million
U.S. Auto Sales
The New North
Measuring Up
Looking Ahead
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2004
2005
2006
2007
2008
2009 (Est.)
17.7 million
16.9 million
17.0 million
16.1 million
13.2 million
9.9 million
Decline: 18% in 2008; 25% in 2009
Autos = 3.5% of GDP
Past declines:
21% in 1974;
19.1% in 1980
The Global
Economy 2008
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World Population (Market)
6.5 Billion
U.S. Population
0.3 Billion
World Economy (GDP)
$60.6 Trillion
U.S. Economy
$14.4 Trillion
EU Economy
$18.4 Trillion
China’s Economy
$4.3 Trillion
Source: 2006 Estimates IMF and World Bank
Economic Excess/Overhang
Furloughs and wage freezes
and give backs
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Mercury Marine
Milwaukee labor contracts
State furloughs
Unemployment
Housing glut/Housing cycle
Consumer deleveraging
Consumer savings rate> – to +
New financial regulations
Generational reality check
The Budget Deficit:
A Threat to the Dollar
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So what is the
“New Normal”?
Consumer:
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Savings Rate
Spending
Work Life
Standard of Living
So what is the
“New Normal”?
Business:
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Regulation
Outsourcing
Globalization
Business Cycles
Moving Ahead:
Where do we go
from here?
In the New Normal
economy, where is
the advantage?
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A back to basics economy
Huge global markets
A versatile workforce
A
Alignment with market
opportunities
Key Global
Market Demand
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Energy
Fiber
Protein
Some Economic
Opportunities
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Waste transformation &
technology
Higher education & training
International direct investment
Why waste
transformation?
• New North is full of waste producers –
meat packing, paper, dairy farms and
processors, etc
• Waste transformation is green
• Academic and private sector research
assets
• Some proven models & pilots e.g.
Encap
• The world’s largest fresh water clean
up project.
Higher Education and
Workforce Training
• Large markets – global markets
• UW, private colleges, proprietary,
and WTCS assets
• Private sector training programs
• Good paying jobs
• Students as “educational tourists”
Foreign Direct
Investment
• The record of foreign direct
investment in the New North
• A different investing perspective and
timeline
• An interest in R&D – Fincantieri,
Kikkoman, Roche
• UW Task Force on International
Investment
Parting Thoughts
Focus on the plan: Most regions
don’t have a strategic plan
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Think globally: The markets
increasingly are over there
Position for the next recovery:
It will come and those with a
good plan will prosper
David J. Ward, Ph.D., CEO
Phone: (608) 279-3393
Email: [email protected]
Fax: (608) 441-8064
Web: www.northstareconomics.com