Transcript Document

The Economic Development 500
What Does It Take To Win The Race…
…. And Assessing The Region’s Chances
May 5, 2010
What is Economic Development Success?
Presentation Disclaimer
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree
nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing
principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the
things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions
represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about
to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations
with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have
any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the
opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing
specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and
I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area
Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree
nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing
principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the
things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions
represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about
to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations
with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have
any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the
opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing
specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and
I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area
Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree
nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing
principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the
things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions
represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about
to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations
with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have
any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the
opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing
specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and
I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area
Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant
marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other
organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree
nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing
principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the
things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions
represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about
to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations
with other economic developers and internet research. I am not a marketing specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have
any expertise that qualifies me to present any significant marketing advice and I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the
opinions of the speaker and not that of any other organization, including Area Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research. I am not a marketing
specialist and do not have a marketing degree nor have I done any marketing consulting. The opinions represented in this document are mine and mine only. I in no way have any expertise that qualifies me to present any significant marketing advice and
I especially can”t use any marketing principals used in Marketing Theory classes. What you are about to preview over the next 30 minutes completely and solely represent the opinions of the speaker and not that of any other organization, including Area
Development. In fact, some of the things that you are about to see, are reflections of conversations with other economic developers and internet research.
CB Richard Ellis | Page 2
TABLE OF CONTENTS
The Economic Development 500 – What Does It Take To Win The Race
OBJECTIVES
I.
The Field (Economic Challenges)
II.
What Does it Take to Win the Economic Development Race?

Build the team

Race at a great track

Scout the competition

Get fans to the race track

Finish strong at the end of the race

When you win…. CELEBRATE!
III.
What Winners are doing
IV.
Sangster’s Top Ten
CB Richard Ellis | Page 3
Section I- The Economic Challenge
Business Trends
Need
for
Flexibi
lity
CB Richard Ellis | Page 4
Corporate Downsizing
Closures and Layoffs
What does this mean for you?
 Pressure to Retain Existing Businesses
 Intense competition for fewer project opportunities
(Supply & Demand)
 Increased scrutiny by your investors, partners, and
elected officials (… and media!)
CB Richard Ellis | Page 5
Strategic Location Drivers
What Drives Location Decisions?
Workforce
Economic
Incentives
Cost
Quality of Life
Accessibility
Operating
Environment
CB Richard Ellis | Page 6
Location Decision Trends
 Can I Attract, Recruit, and Retain the Talent
and Expertise To Be Successful?
 There Is A “Need for Speed” – sometimes
• Must be responsive
• Must have product/inventory
 Incentives – Flexibility Is Important – “One size
does not fit all”
• Creative
• Performance-based
• Front-end loaded
 It’s About COST! – Every facet of the Location
Decision Process is competitive. Locations
must offer a cost-competitive business
environment
CB Richard Ellis | Page 7
Project Activity/Trends
 Industry Activity
• Biotech/Life Sciences
• Medical and Healthcare Services
• Advanced Manufacturing
• Logistics/Supply Chain Rationalization
• Alternative/Renewal Energy
 Project Activity
• Continue to See Significant Inquiries
• Planning Cycle – 9-18 months
• Consolidation/cost reduction initiatives driving activity
• Some caution in exercised in “pulling the trigger”
CB Richard Ellis | Page 8
Section III - Strategies for Winning
 Build the Team
• Have a plan (vision for winning)
• Hire strong leadership (owner, driver, crew chief)
• Build around your team’s strengths
• Attract strong talent (support team – Pit Crew)
– In-migration
– Retention of your best and brightest
– Workforce development
CB Richard Ellis | Page 9
Section III - Strategies for Winning
 Race at a great track
• Infrastructure
–Water / Sewer
–Utilities
–Roads
• Real Estate options
• Accessibility
CB Richard Ellis | Page 10
Section III - Strategies for Winning
 Get Fans to the race track
• Creative marketing/branding
• Communication
• Flexible Incentives
• Superior website
• FAM tours
CB Richard Ellis | Page 11
Section III – Strategies for Winning
 Scout the Contenders
• Who is your competition?
• What are their strengths?
• What are they doing that you aren’t?
• How do you differentiate?
CB Richard Ellis | Page 12
Section III- Strategies for Winning
RACE HARD FROM START TO FINISH!!!!!
CB Richard Ellis | Page 13
Section III- Strategies for Winning
Race hard from start to finish
 Focus on fundamentals
• Responsiveness
• Credibility
• Honesty
 Be consistent (minimize your errors)
• Accurate information
• Community visits
 Make your move as the race unfolds
• Learn from past experiences
CB Richard Ellis | Page 14
Section III- Strategies for Winning
 When you win CELEBRATE!
• Great way to kick-off a long-term relationship
• Celebrating benefits both parties
• Goodwill with company
• Involves all stakeholders
• Opportunities to engage potential investors
• Be strategic in planning
CB Richard Ellis | Page 15
Section IV – What Winners are doing
 Build the Team
• Build around the team’s strengths
• Attraction strategies become more targeted
• Use strengths /assets to sell tickets
• Organizational development
• Self-assessment
 Attract and Retain Strong Talent
• Young professionals networks
• Ex-patriot programs
• Road shows
• Direct marketing
• Close alignment & partnerships with Colleges / Universities
 Workforce Development
• Targeted programs as early as middle school / high school
• Local industry leaders driving curriculum / skill development
• Workforce studies examining generational differences
CB Richard Ellis | Page 16
Section IV – What Winners are doing
 Race at a great track
• Regional approach to planning
– Transportation
– Water / Sewer
• Inventory of real estate options
– Existing
– Greenfield
– Specialized Developments (Technology / Biotech/Advanced
manufacturing)
• Accessibility
• Public Policy aligned with economic development
strategies
• Airport management is on the economic
development team
CB Richard Ellis | Page 17
Section IV – What Winners are doing
 Scout the Competition
• Constantly benchmarking against perceived
competition
• Benchmarking against “best in class”
• Using a broad range of sources to determine what
the competition is doing
– Consultants
– Prospects
• Requesting extensive debrief sessions when
unsuccessful
CB Richard Ellis | Page 18
Section IV – What Winners are doing
Social Media
 Get people to the race track
• Social Media
CB Richard Ellis | Page 19
Section IV – What Winners are doing
 Get people to the race track
• Creative and flexible incentives
–Cash is king
–Customizable (one size does not fit all)
–Performance driven vs. clawbacks
• Streamlined applications / approvals
• Expedited Permitting
CB Richard Ellis | Page 20
Section IV- What Winners are doing
 When you win … CELEBRATE!
• Work closely with the company to ensure that the
celebrations meet their objectives
– No surprises
– Sensitivity to culture and environment
• Flawless Execution (attention to detail)
• Creative ideas laced with local flavor
CB Richard Ellis | Page 21
Sangster’s TOP TEN
Best Practices to Help Position You
To Compete
CB Richard Ellis | Page 22
Sangster’s TOP TEN
10. Don’t Pretend to be something you aren’t
 Align local and regional strengths and assets with
economic development vision and strategies
 Quality jobs mean different things to different
communities
 “We’re going after Biosciences here.”
CB Richard Ellis | Page 23
Sangster’s TOP TEN
9. If you don’t know where you’re going,
it’s pretty hard to get there
 It’s critical to establish public policies to support your
economic development vision
•
Transportation
•
•
•
Infrastructure
Education
Culture
 Perceptions ARE reality –
especially negative ones
CB Richard Ellis | Page 24
Sangster’s TOP TEN
8. Put innovative tools into your toolbox
 Offer a variety of innovative incentive tools to meet
unique needs of projects
•
Flexible
•
Customizable
•
Streamline application and approval processes
CB Richard Ellis | Page 25
Sangster’s TOP TEN
7. We’re different – we promise!
 Quality of life is NOT a major differentiator
 You MUST be able to communicate what
differentiates you from your competition
 It’s all about JOBS!
CB Richard Ellis | Page 26
Sangster’s TOP TEN
What is “quality of life” anyway?
 Economy rich and diverse enough to provide
opportunities for two professional households
 Strong K-12 educational opportunities
 Environment where housing and income are in
equilibrium
 Trip to work is a manageable commute
 Communities that welcome diversity
CB Richard Ellis | Page 27
Sangster’s TOP TEN
6. All for one and one for all
(There is no “I” in Team)
 Take a regional approach to marketing and
promoting your community
 The regional organization is MY FRIEND
 Everyone wins when the region wins – sounds trite,
but it’s true
CB Richard Ellis | Page 28
Sangster’s TOP TEN
5. If you want to WIN, you have to have
quality players on the Team
 Assemble a strong team/network of public and private sector
members that are advocates for your mission
 Engage the team in every aspect of your plan
• Strategic planning
• Trade missions
• Community visits with prospects
• “FAM” trips
CB Richard Ellis | Page 29
Sangster’s TOP TEN
4. Show me the love
 Invest in building and maintaining relationships with
prospects and those who influence and source projects
• Target strategic relationships – everyone has limited
resources
• Face time is important – building trust and credibility
• Get decision-makers to your community
CB Richard Ellis | Page 30
Sangster’s TOP TEN
3. We’re ONE big, happy family
 Take a seamless and integrated approach when coordinating
project resources
• Regional
• Local
• State
• Utilities
 With compressed process and decision times,
coordination is critical – can be a filter
CB Richard Ellis | Page 31
Sangster’s TOP TEN
2. Good information can put you on the map
 Invest in developing a superior website
• Easy to navigate
• Current and accurate information
• Maps and visuals
• Detailed contact info (who to call)
 Personal touch – high level of response with current
information
CB Richard Ellis | Page 32
Sangster’s TOP TEN
1. Become a word in the dictionary… the next
 Branding can be a differentiator
• KCADC - OneKC
• Indy Partnership
• Charlotte USA
• Austin – The Human Capital
 Target, Target, Target
• Strategic advertising
• Familiarization tours
• Frequent “touches”
CB Richard Ellis | Page 33
Jonathan Sangster
Senior Managing Director
Consulting & Economic Incentives Practices
CB Richard Ellis
404.923.1228
[email protected]
CB Richard Ellis | Page 34