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The Race to Competitive?
What Makes
a Place
Competitive
?
2016 State Business Tax Climate Index – State Ranking
(1 is Best, 50 is Worst)
Overall
Corporate Tax
Individual Income
Sales Tax
Property Tax
Alabama
29th
25
22
41
17
Arkansas
38th
42
29
43
27
Florida
4th
17
1
17
20
Georgia
39th
9
42
35
31
Kentucky
28th
29
30
9
23
Louisiana
37th
38
27
50
28
Maryland
41st
19
45
8
42
Mississippi
20th
13
21
28
35
Missouri
17th
3
28
23
8
North Carolina 15th
7
14
31
32
Oklahoma
8
40
38
18
South Carolina 36th
16
41
19
25
Tennessee
16th
18
8
46
37
Texas
10th
41
6
37
34
Virginia
30th
6
39
6
29
West Virginia
21st
21
25
21
33rd
16
Source: 2016 State Tax Climate Index
Image-Brand-National Rankings?
•
•
•
•
•
•
•
•
•
•
•
Alabama Overall
#38
Workforce
#38
Cost of Doing Business
#17
Infrastructure
#21
Economy
#48
Quality of Life
#43
Technology and Innovation #36
Education
#46
Business Friendliness
#30
Cost of Living
#4
Access to Capital
#16
Source:CNBC 2016
Image-Brand-National Rankings?
•
•
•
•
•
•
•
•
•
•
•
Alabama Overall
#38
Workforce
#38
Cost of Doing Business
#17
Infrastructure
#21
Economy
#48
Quality of Life
#43
Technology and Innovation #36
Education
#46
Business Friendliness
#30
Cost of Living
#4
Access to Capital
#16
#41
#16
#16
#24
#39
#49
#33
#34
#29
#11
#35
Source:CNBC 2016
2011
Rankings and Performance
50
WY
Worse
Performance
Than Rank
45
40
WV
CT
NM
VA
AL
KS
KY
MD
AK
35
NJ
AR
Average
30
Statistical
Ranking
DE
MO
LA
AZ
SD
IN
25
OH
TN
20
NC
GA
NE
IA SC
ID
15
MN
UT
TX
10
FL
MT
IL
HA
NY
MI
NH
OR
WA
Better
Performance
Than Rank
0
0
10
20
30
Plotted Against
RI
CA
ND
5
ME
NV
MA
CO
VT
States By Average
Ranks by Forbes,
CNBC, and Chief
Executive (2015)
PA
OK
WI
MS
40
Average "Best States" ranking
50
Actual Performance for
Job Growth, Wage
Growth and Growth in
GDP (2012-2015)
Southern States 1-Year
Total Employment June 2015 to June 2016
3.5%
3.0%2.9%
3.0%
2.6%
2.5%
2.0%
2.2%
1.7%
1.9%
1.7%
1.5%
1.4%
1.2%
1.0%
1.0%
2.3%
2.1%
0.6% 0.5%
0.5%
0.0%
-0.1%
-0.5%
-1.0%
-0.1%
-0.8%
USA
AL
AR
FL
GA
KY
LA
MD MO MS
NC
OK
SC
TN
TX
VA
WV
Source: U.S. BLS, July 2016
Southern States 1-Year
Manufacturing Employment June 2015 to June 2016
4.0%
3.3%
2.0%
2.8%
2.0%
1.5%
3.4%
1.7%
1.0%
1.4%
0.3%
0.0%
-0.2%
-0.3%
-2.0%
-1.9%
-2.3%
-2.1%
-4.0%
-3.8%
-4.8%
-6.0%
-8.0%
-8.6%
-10.0%
USA
AL
AR
FL
GA
KY
LA
MD MO MS
NC
OK
SC
TN
TX
VA
WV
Source: U.S. BLS, July 2016- Measured June 2015- June 2016
Southern States 1-Year
Construction Employment June 2015 to June 2016
10.0%
8.9%
5.9%
6.0%
4.0%
7.8%
7.3%
8.0%
5.2%
3.9%
3.4%
2.1%
2.0%
3.2%
2.7% 2.4%
1.1%
0.3%
0.8%
0.0%
-0.6%
-2.0%
-2.6%
-4.0%
-6.0%
-5.4%
-8.0%
USA
AL
AR
FL
GA
KY
LA
MD MO MS
NC
OK
SC
TN
TX
VA
WV
Source: U.S. BLS, July 2016- Measured June 2015- June 2016
Southern States 1-Year
Professional & Business Services Employment Changes June 2015 to June 2016
6.0%
5.5%
5.3%
5.0%
4.3%
4.0%
4.5%
4.0%
3.8%
3.5%
2.8%
3.0% 2.5%
2.3%
2.0%
2.1%
1.6%
0.7%
1.0%
0.0%
-0.4%
-1.0%
-2.0%
-2.3%
-3.0%
-2.3%
-2.7%
-4.0%
USA
AL
AR
FL
GA
KY
LA
MD MO MS
NC
OK
SC
TN
TX
VA
Source: U.S. BLS July 2016 Measured June 2015- June 2016
WV
Southern States % GDP Change 2015
4.0%
3.8%
3.5%
3.1%
3.0%
2.5%
2.7%
2.6%
2.4%
2.0%
1.7%
1.6%1.5%
1.5%
1.1%
1.0%
1.9% 2.0%
1.5%
1.3%
1.4%
1.3%
0.7%
0.5%
0.1%
0.0%
USA
AL
AR
FL
GA
KY
LA
MD MO MS
NC
OK
SC
TN
TX
VA
WV
Source: U.S. BEA, July 2016
Change in Population 2010-2014
(25-44 Year Old)
6.5%
7%
6%
4.8%
5%
4%
3.2%
2.5%
3% 2.2%
2%
1%
3.7%
1.1%
0.3%
0.8%
2.5%
0.6% 0.8%
2.7%
1.3%
0%
-0.3%
-1%
-2%
-3%
-1.4%
-2.0%
Source: U.S. Census
So What…
What is a Community to do?
Information Stage
History & Current
Direction
Establishing a
Common
Current Reality
Reality Filters
Compass
Context
SWOT & PEST
Change
Research
Assessments
Surveys
External Input
18
Action Stage
Choice Stage
Goals
Objectives
Envisioning a
Common
Future Desire
Actions
Action Choice
Filters
Direction, or Compass is
driven by the Vision, Mission
and Core Values of the
organization, place, or
business
Control
Leadership
Assessment and
Continuous
Improvement
Process
Impact
Context examines relative
assets and converts
comparative and
longitudinal information to
determine realistic options
Change is the group of
factors, outside your control,
that influences your future,
global trends, demographic
shifts, changing technology
Action
Choices
Strategic
Action
Agenda
Resources
Time
Action Plan Matrix
•
•
•
•
•
•
What actions will we undertake?
Who will be responsible for those actions?
What resources do we need to be successful?
Where will those resources come from?
When will each action start and be completed?
What results do we expect?
Communications
Metrics and
Measurements
(Dashboards)
Assessment
Adjustment
Economic Leadership LLC Competitiveness Process
Top Factors for Companies
Considering New Investment
1) Availability of skilled labor
2) Labor costs
3) Proximity to major markets
4) State & Local Incentives
5) Availability buildings
6) Highway accessibility
7) Available land
8) Tax exemptions
9) Expedited or “fast track” permitting
10) Shipping costs
11) Accessibility of a major airport
12) Energy availability and costs
Site Selection
Consultants
Source: Area Development 30th Annual Survey of Corporate
Executives, March 2016
How Some View Their World
Why Some Places Succeed
• They understand and embrace the
journey (to stay competitive)
Why Some Places Succeed
• They understand and embrace the
journey
• Strong Leadership Teams
Why Do We Want and Need Leadership?
• We want someone, or
some group, we trust, to
make sense of all the
information we are
receiving.
• We want leaders to take
actions that improves our
situations or solves our
problems
Worst Kept (Yet Often Ignored) Secrets, To
Great Leadership
• Continuous learning
• Tolerance for
ambiguity,
complexity, and
change
• Communicate the
narrative
Why Some Places Succeed
• They understand and embrace the
journey
• Strong Leadership Teams
• Practice collaboration
Collaboration
“The act of working with one or
more people to produce or
create something.”
Collaboration is an
unnatural act between
un-consenting adults
What is a Commitment to Collaborate?
What is a Commitment to Collaborate?
Evolution Of Groups
Familiarity
Personal Connections
Common Information & Language
Shared Vision & “Plan”
Shared Specific Tasks
Action & Trust
• Past Behavior
• Capability
• Alignment
Collaboration Continuum
Collective Impact
(Synergies)
Coordinated
Impacts
Individual Impact
Nobody Does Anything
Disruptive Impact
Destroying Impact
Why Some Places Succeed
• They understand and embrace the
journey
• Strong Leadership Teams
• Practice collaboration
• Focus on the future
Economic
Trends
Political
Choices
Competition
Industry
Trends
Why Some Places Succeed
• They understand and embrace the
journey
• Strong Leadership Teams
• Practice collaboration
• Focus on the future
• They make Choices and take action
Information Stage
History & Current
Direction
Establishing a
Common
Current Reality
Reality Filters
Compass
Context
SWOT & PEST
Change
Research
Assessments
Surveys
External Input
37
Action Stage
Choice Stage
Goals
Objectives
Envisioning a
Common
Future Desire
Actions
Action Choice
Filters
Direction, or Compass is
driven by the Vision, Mission
and Core Values of the
organization, place, or
business
Control
Leadership
Assessment and
Continuous
Improvement
Process
Impact
Context examines relative
assets and converts
comparative and
longitudinal information to
determine realistic options
Change is the group of
factors, outside your control,
that influences your future,
global trends, demographic
shifts, changing technology
Action
Choices
Strategic
Action
Agenda
Resources
Time
Action Plan Matrix
•
•
•
•
•
•
What actions will we undertake?
Who will be responsible for those actions?
What resources do we need to be successful?
Where will those resources come from?
When will each action start and be completed?
What results do we expect?
Communications
Metrics and
Measurements
(Dashboards)
Assessment
Adjustment
Economic Leadership LLC Competitiveness Process
“ Leadership and
learning are
indispensable to
each other.”
John F. Kennedy
[email protected]