Transcript Economic Development Marketing

Louisiana Economic
Development
Marketing & Attraction Course
Presented by:
Sharon Younger, PhD
May 2014
1
Louisiana Economic Development
Marketing & Attraction Course
Overview of Economic
Development Marketing
2
The Origins of Marketing
• The Struggle to Meet Demand Era – Agriculture
• The Mass Production Era – Ford
• The Mass Market Era – Procter & Gamble
• The Target Market Era – Cable TV
• The Long Tail - Internet
3
Economic Development
Environment
• Highly Competitive
• Extremely Time Sensitive
• Confidentiality Is Imperative
• Relationships Matter
• Online Information Is Increasingly Important
4
Economic Development
Environment
It’s About Elimination
5
The Role of Site Selectors
Typically the research and screening process is conducted by
one of the following groups:
• Real estate/site selector consultants or firms
• In house real estate and corporate real estate professionals
• Consulting firms specializing in incentives
• Firms that provide a main product/service and offer site
selection consulting to their clients as a secondary service
(accounting firms, legal firms, payroll companies)
• Headquarters or office staff
6
The Role of Economic
Development Practitioners
• Work with local constituents and educate them on the importance
of economic development marketing and attraction
• Market the community internally as a great place to live and do
business
• Establish a positive image and attitude amongst business, political,
and community leaders and unite them to collectively contribute
the required investments to make it attractive to clients
• Build a positive relationship between the public and private sectors
7
Key Facts About Business
Attraction
• Business attraction may be the main focus of a specific
organization, but should not be thought of as the only
economic development approach in a community
• Business attraction requires a lot of financial and time
investment that does not always result in a “win.” Business
attraction investment must be “patient money.”
• Business attraction is not based solely on marketing, but on
the competitive and comparative advantages of the
community.
• Business attraction from a nearby community or from within
the region might result in a “zero-sum game,” or even a
loss if significant time and money is invested in the
relocation.
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Community Business Climate
• Attitudes towards growth
• Public-private cooperation
• Government responsiveness
• Government efficiency
• Labor relations
• Economic development resources and project management
expertise
• Government regulations, fees, zoning patterns and permits and
permitting time
9
Economic Development Marketing
• Know the Product
• Know the Market
• Know the Process
10
Why You Need Research
Knowledge = Power
•
•
•
•
•
Understand the Local/Regional Economy
Prepare to Work with Prospects
Identify Economic Targets & Opportunities
Basis for All Successful Strategic Plans
Basis for All Effective ED Marketing
11
Louisiana Economic Development
Marketing & Attraction Course
Preparing for the Case
Study – Know Your Product
12
Demographics Tools
• Neilson Claritas
• ESRI Data/Mapping
• Census/ACS/FactFinder (US Dept of
Commerce)
• Immigration/in-migration (IRS,
Moody’s)
• Woods & Poole Economics
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Location & Transportation
• Access to rail
• Airport runway length
• Customs services/Foreign Trade Zones
• Commute times
• Access to highways
• Proximity to customers
• Proximity to suppliers
• Natural resource deposits
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Infrastructure
•
•
•
•
•
•
•
•
•
•
Utility Consumer Satisfaction
Average Number of Power Outages/Duration
Redundancy
Water Capacity
Sewer Capacity
Natural Gas
Fiber Optics Capabilities
Communications
Solid and Hazardous Waste Capacity
Environmental Issues
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Taxes/Cost of Doing Business
• State Tax Climate
Ranking
• Personal Property Tax
• Corporate Income Tax
Rate
• Individual Income Tax
Rate
• Gross Receipts Tax Rate
• Unemployment Insurance
Max. Rate & Taxable
Wage Threshold
• Worker’s Compensation
per $100 Payroll
• Utility Costs
• Sales Tax
16
Cost of Business / Living Tools
• Moody’s Economy.com
• Tax Foundation
• RS Means Square Foot Costs
• COLI – CODBI
• Banknote.com
• C2ER
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Quality of Life
Evidence suggests that quality of life factors
have
a significant impact at the margins in corporate
decision-making. It is clear that in some cases,
the opinions of spouses and families of
corporate executives have moved companies
towards areas with a more favorable quality of
life.
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Quality of Life
• Cost of living
• Cultural and
recreational amenities
• Public services
• Education and school
systems
• Housing cost and
availability
• Median Housing Cost
• Home appreciation/
depreciation
• Child care
• Community facilities
(cultural and
recreational)
• Health care
• Crime levels
• Natural features
• Climate
• Attractions and
events
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Sites & Facilities
• Number of facilities/sites available for lease or purchase
• Size (square feet) and condition
• Purchase and rental rates
• Infrastructure and utility setup
• Telecommunications capabilities
• Parking availability
• Building & site specs
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Benefits of Selecting
Target Markets
Why have target economic sectors?
• Maximizes the effectiveness of local economic development
resources (money, time, professionals) by focusing on
smaller, compatible economic segments
• Results in the identification of productive targets and the
recruitment of economic sectors that have maximum positive
impact on the local economy
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Louisiana Economic Development
Marketing & Attraction Course
Case Study –
Knowledge is Power
• Guide
d
• Solo
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Considerations for
Selecting Target Markets
State/Regional Targets:
•
Statewide Targets – are there existing, research-quantified
targets identified by and for the state
• Regional Targets – research-quantified target segments for
a inter- or intra-state region
Resources: If targets exist at these levels it and possibly by identifying and
pursuing sub-segments within the targeted segments. is easier to maximize
local resources by participating in the target market strategies
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Considerations for
Selecting Target Markets
Existing Economic Base:
•
•
Types of Existing Businesses & Industries
Support Services
• Suppliers
• Sub-Contractors
• Economic Clusters
• Existing
• Potential
Resources:
- County Business Patterns, U.S. Department of Commerce
- Utility Providers
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Tools for Business Data
• Business Wise
• Hoovers
• Info USA
• D&B
• Directory of Corporate Affiliations
• CoStar Real Estate data
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What Is a Business Cluster?
Do You Have One?
Workforce
Suppliers
Customers
Infrastructure
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What Is a Business Cluster?
Do You Have One?
• A group of vertically integrated economic activities that
have reach a degree of specialization that provides a
global competitive advantage.
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How Can We Measure a
Business Cluster?
• Employment Size
• Degree of Industry Specialization
• Degree of Occupation Specialization
• Supply Chains
• Major Infrastructure or Resources
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Considerations for
Selecting Target Markets
Available Local Resources:
• Environment
• Solid Waste
• Air Quality
• Water
• Distributor Networks
• Transportation Alternatives
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Considerations for
Selecting Target Markets
Available Local Resources:
• Knowledge & Innovation Resources
• Research centers
• Colleges & Universities
• Technical Centers
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Invention Disclosures at the
University of Virginia by School
200
College and
Graduate School of
Arts and Science
150
School of
Engineering and
Applied Science
100
School of Medicine
Other
50
0
2006
2007
2008
2009
2010
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Patents by County & Assignees
1400
1200
1000
800
Licensed in TJP
area
Licensed out of
Area
600
Individual
Inventors
400
Total
200
0
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Considerations for
Selecting Target Markets
Potential Economic Impact of
Targeted Segments:
•
Job Creation
•
•
Number of jobs
Types of jobs
Resources: U.S. Bureau of Economic Analysis, Regional Input-Output Multipliers
(RIMS II)
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Considerations for
Selecting Target Markets
Potential Economic Impact of
Targeted Segments:
• Compatibility with Existing Industries
• Does not create direct competition for existing
businesses
• Utilizes products or services of existing
businesses
Resources: U.S. Bureau of Economic Analysis, Regional Input-Output Multipliers
(RIMS II)
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Why Workforce is Important
History of Top Location Decision Factors Survey,
Corporate Decision Makers
Top Location Decisions
2013
2012
2011
2010
2009
2008
2007
2006
Availability of Skilled Labor
1
3
2T
7
6
6
4
8
Highway Accessibility
2
2
1
1
2
1
1
2
Labor Costs
3
1
2
2
1
2
2
1
Occupancy/Construction Costs
Availability of Advanced ICT
Services
4
5
5
4
7
3
5
7
5
4
|
|
|
|
|
|
Available Buildings
6
8
|
|
|
|
|
|
Corporate Tax Rate
7
7
4
6
5
8
7
3
State and Local Incentives
8
|
5T
5
8
7
8
4
Low Union Profile
9
10
10
|
|
9
10T
|
Energy Availability & Costs
10
6
7
9
4
5
3
9
* Not in top ten factors for year shown
Source: Area Development Magazine, Corporate Surveys, 2006 to 2013
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Considerations for
Selecting Target Markets
Potential Economic Impact of
Targeted Segments:
• Wages & Benefits
•
Comparison to local averages
Resources: U.S. Bureau of Economic Analysis, Regional Input-Output Multipliers
(RIMS II)
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Quarterly Census of Employment
Wages- Annual Average
Industry
Avg. # of
Reporting
Units
Avg. Annual
Employment
Avg. Annual Wage
Total All Industries
2,324
54,040
$ 33,764
Total All Industries,
Federal
Government
25
522
$55,286
Total All Industries,
State Government
8
953
$34,289
Total All Industries,
Local Government
17
8,761
$34,675
Total All Industries,
Private Ownership
2,274
43,804
$33,313
Goods Producing
376
13,249
$41,585
Natural Resources
and Mining
17
92
$31,290
4
29
$25,574
Crop Production
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Quarterly Census of Employment
Wages- Annual Average
Industry
Avg. # of
Reporting
Units
Avg. Annual
Employment
Avg. Annual
Wage
Forestry and Logging
6
22
$22,393
Agriculture
3
16
$27,318
235
3,099
$37,025
Construction of Buildings
81
887
$38,450
Heavy and Civil Engineering
Construction
17
519
$46,55
Specialty Trade Contractors
137
1,693
$33,359
Manufacturing
125
10,058
$43,083
8
1,623
$47,163
10
593
$33,180
7
677
$40,366
Construction
Food Manufacturing
Wood Product Manufacturing
Paper Manufacturing
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Considerations for
Selecting Target Markets
Workforce/Labor Market Capacity
Labor Market Area – labor shed complete geographic area from which
workers can be drawn for a specific industry segment
• Commute Zone
• Commuting Patterns
Number of Workers Available
• Traditional Sources
• Non-Traditional Sources – important in periods of low employment, can be
hard to quantify
Skill sets within the Labor Market
Tip: Labor market analysis can also be a very helpful tool in existing industry development
(retention & expansion)
Resources: Labor market analysis can be performed to quantify labor market statistics and to identify
target markets based upon workforce resources.
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Commute Patterns
Source http://onthemap.ces.census.gov/
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Commute Patterns
Source http://www.census.gov/population/www/socdemo/journey.html
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Tools for Workforce Analytics
• EMSI – BLS
• State Dept of Labor and Workforce
Development
• On The Map
(labor & commute sheds)
• Career Builder
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Workforce Analysis
The following data should be collected for the entire potential workforce, ages 1870:
Workforce Characteristics
• Previous employment by industry and occupation
• Education, training, specialized work skills
• Commute data
• Earnings and benefits data
• Demographic data
• Employment barriers
• Unused job skills and training (underemployment)
These segments within the potential workforce will be identified and quantified:
New Entrants to the Workforce
• Workers relocating to the area since 2000
• Separating from the Military
• Other new entrants (students, early retirees, etc.)
• Commute data (previous/current)
• Comparative demographic and employment data
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Workforce Analysis
Labor Reserves
• Retirees
• Students
• Second Income Earners
• Military Spouses
• Underemployed
• Out commuters
Out Commuters (i.e. 45 to 60 minutes)
• Commute preferences
• Comparative demographics and employment data
Unemployed
• Desire for employment
• Previous employment data
• Length of unemployment
• Employment preferences
• Comparative demographic and employment data
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Potential Hidden Labor Supply
Employment Status
TJP Region
Not employed, but interested in working
46,379
Underemployed
27,538
Residents employed part-time, who
would prefer full-time employment
13,703
Recent post-secondary graduates
Total
7,578
95,198
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Educational Attainment
TJP
Region
Virginia
40
35
30
25
20
15
10
5
0
Less than High High School
School
Diploma Only
12-15 Years
16+ Years
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Existing Business Clusters &
Major Industry Groups
By Average Annual Earnings
Agribusiness, Food Processing & Technology
$19,358
Arts, Entertainment, Recreation & Visitor Industries
$23,146
Forest & Wood Products
$37,391
Apparel & Textiles
$38,298
Education & Knowledge Creation
$42,243
Transportation & Logistics
$42,325
Fabricated Metal Product Mfg.
$47,555
Health Services/Biomedical/Biotechnical
$48,238
Business & Financial Services
$49,711
Printing & Publishing
$52,656
Energy
$71,024
Information Technology & Telecommunications
$74,135
Chemicals & Plastics
$74,318
Defense & Security
$74,437
Advanced Materials
$83,087
Computer & Electronic Product Mfg.
$99,189
Region Average $44,670
State Average $56,533
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
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Existing Business Clusters &
Major Industry Groups
By Location Quotients
Fabricated Metal Product Mfg.
0.19
Chemicals & Plastics
0.53
Transportation & Logistics
0.56
Health Services/Biomedical/Biotechnical
0.64
Advanced Materials
0.81
Apparel & Textiles
0.88
Education & Knowledge Creation
0.9
Defense & Security
0.9
Business & Financial Services
0.92
Information Technology & Telecommunications
0.95
Energy
1.09
Agribusiness, Food Processing & Technology
1.12
Arts, Entertainment, Recreation & Visitor Industries
1.15
Computer & Electronic Product Mfg.
1.18
Printing & Publishing
1.18
Forest & Wood Products
1.21
0
Nationwide Industry
Employment Ratio
0.2
0.4
0.6
0.8
1
1.2
1.4
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Louisiana Economic Development
Marketing & Attraction Course
Turning Target Markets
Around
49
Optimal Target Markets
•
•
•
•
•
•
High relative wages
High relative jobs multiplier
Support or strengthen existing industry groups/clusters
Make use of the location’s unique attributes
Utilize incumbent occupational skill-sets
Match area’s educational infrastructure and
postsecondary completions
• Potential to employ underemployed and unemployed
• Match the area’s capacity and desire for growth and
development
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Understanding the Dynamics of the
Target Market
Critical Information Requirements:
• What is the size of the market?
• Is it growing?
• What is the industry outlook?
• What are the economic trends?
• Who are the key players in the market segment?
51
Five-Year Competitiveness
Major Business/Industry Groups
2,500
Local Decline
National Growth
Local Growth
National Growth
Industry-Wide Effect (5-Year Job Change)
2,000
1,500
Business & Financial Services
Health Services
Biomedical/Biotechnical
Education & Knowledge
Defense & Security
Creation
1,000
Arts, Entertainment,
Recreation & Visitor
Industries
Energy
Machinery Mfg.
500
Agribusiness, Food
Processing & Technology
Fabricated Metal Product
Mfg.
0
Electrical Equipment,
Appliance & Component
Mfg.
(500)
Information Technology &
Telecommunications
Transportation Equipment
Mfg.
Chemicals & Plastics
Computer & Electronic
Product Mfg.
(1,000)
Forest & Wood Products
Advanced Materials
Apparel & Textiles
Local Decline
(1,500) National Decline
(1,500)
Printing & Publishing
Transportation & Logistics
(1,000)
(500)
0
500
1,000
Local Growth
National Decline
1,500
2,000
Local Competitive Effect (5-Year Job Change)
52
Major Business/Industry Groups
1.40 At-Risk
Printing & Publishing
Arts, Entertainment,
Recreation & Visitor
Industries
Computer & Electronic
Product Mfg.
1.20
Agribusiness, Food
Processing & Technology
Energy
Competitive
Business & Financial Services
Forest & Wood Products
1.00
Specialization (LQ)
Apparel & Textiles
Information Technology &
Telecommunications
Advanced Materials
Defense & Security
0.80
Electrical Equipment,
Appliance & Component
Mfg.
Education & Knowledge
Creation
0.60
Health
Services/Biomedical/Biotech
nical
Chemicals & Plastics
Transportation & Logistics
0.40
Transportation Equipment
Mfg.
Machinery Mfg.
0.20
Fabricated Metal Product
Mfg.
Declining
0.00
(2,000)
Rising
(1,000)
0
1,000
2,000
3,000
4,000
Employment Change (2006-2011)
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Understanding the Dynamics of the
Target Market
Critical Information Requirements:
• What are the workforce/training and skills requirements?
• What are the major cost components in the industry?
• What are the key factors in location decisions?
Overall: What makes your area a match or not a match for this target
market?
54
Understanding the Dynamics of the
Target Market
Sources of Industry-Specific Information:
• Trade Associations
• Research
• Web Site
• Publications
• Industry Publications
• Magazine
• Newspapers
• Published Research (Secondary)
• Government
• University
• Private
• Custom Research (Primary)
• Industry Surveys
• Interviews
55
Strategies for Target Marketing
Key Messages:
• What benefits do you offer to the market segment?
• Workforce
• Cost savings, advantages
• Infrastructure
• Technology/knowledge resources
• Access to markets and suppliers
• How does a company locate in you area?
• Contacts
• Considerations
• Service
• Examples of other companies within the target segment who have
benefited/thrived in the locale
56
Louisiana Economic Development
Marketing & Attraction Course
Branding & Marketing
57
Economic Development
Marketing
Branding
Does your organization have a standard
identity program?
Logo
Consistency
Overall Image
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Northwest MS
Economic Development Alliance
Southern Memphis Metro
NWMEDA
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Brand Taglines
Location
Slogan
Brownsville, TX
On the Border by the Sea
Beatrice, NE
Roots to Call Home
Tulsa, OK
A New Kind of Energy
Rochester, NY
Sydney, Australia
Made for Living
There's no place in the world like
Sydney
Austin, TX
Live Music Capital of the World
Qatar
As Independent as You Are
Additional Comments
Brownsville is located on the Texas-Mexico border on the
coast
Beatrice is home to the National Homestead Monument
The city is renowned for oil production and is now trying to
shift its dependence on it
One of the top ranked cities in US for quality of life
The largest city in Australia with iconic harbor and
exceptional business and educational facilities
Home to a number of live music events and a center for the
industry
Montpelier, VT
Qatar is a small emirate bordering Saudia Arabia. IT has one
of the highest per capita incomes in the world
Is a city in lower NE corner of panhandle region with a
Blues Skies, Golden Opportunities strong economy
Montpelier is the capital of Vermont and has a population of
A Little Capital Goes a Long Way less than 10,000
North Carolin a
Thrive in North Carolina
Anchorage, AKI
Big Wild Life
Wichita Fall, TX
North Carolina has a strong business and innovation climate
The largest city in Alaska, and a gateway to what the state
has to offer
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Define Communication Strategy
• What are my communication objectives?
• Who is my target audience?
• What are my distribution channels?
• How does this particular project relate to other
campaign materials and applications? Is it
consistent?
• What is my timeline?
• What is my budget?
75
In-House vs. Vendor Services
Vendor Services:
You will need to evaluate & select the best partners for the job.
Consider how you can best work with:
• Agencies
• Freelancers
• Printers
• Photographers & stock houses
76
Hiring a Photographer
• Match experience to need
• Rate considerations
• Plan ahead for the shoot
• Time of Year
• Copyright & reproduction rights
77
Hiring a Photographer
Photography shot list for Graves Growth Alliance
Below you will find general directional info relating to which direction each
facility/building faces. Please note, that these will not be perfect and are general
approximations:
Hospital / Jackson Purchase Medical Center
Air Evac Lifeteam Base (Adjacent)
W
W/SW
Progress rail (heavy industry – caterpillar)
(the entrance I enter)
S
Entrance to Hickory Industrial Park
Remington (large industry – recent major expansion)
TLC Building (221 Remington Way)
Centrifugal Tech
W
E
S
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Hiring a Photographer
79
Hiring an Agency
• Does the agency specialize in a particular type of
work or client?
• Look at samples of the agency’s work.
• What are the in-house capabilities of the agency?
• How comfortable/confident do you feel with the
agency staff?
• Do you feel that the person assigned to your project
understands your objectives & budget?
80
Hiring an Agency
• How does the agency charge for work performed?
• Don’t expect agencies to compete by preparing
samples.
• Be prepared by understanding the basics of design &
production.
• Have a clear understanding/agreement of the project
timeline.
• Stay in touch with the agency throughout the project.
81
Hiring a Web or Electronic
Presentation Developer
• What are the capabilities?
• Try out work samples.
• What software & development tools will be used?
• What computer operating environments will support the site or
presentation?
• Include a clear expected project time frame in your contract.
• For websites – How will it be hosted?
• Plan ahead for compatibility!
82
Basic Design Issues
• Use restraint
• Use consistent margins
• Allow free white space
• Design for readership
• Organize your information logically
83
Basic Copywriting Issues
• Write for the audience, not for yourself.
• Write for the scanner, the skimmer & the reader.
• Know the power of a photo & photo caption.
• Make your headline work miracles.
• Make the action you want from the reader clear.
• Test your work.
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Develop Your
Marketing Arsenal
• Maps
• Website
• Request for Information Response Materials
• Advertising
• Social Media
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Develop Your Marketing Arsenal
northwestky.com
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Develop Your Marketing Arsenal
Jacksontn.com
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Develop Your Marketing Arsenal
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Develop Your Marketing Arsenal
m3alliancems.com
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Develop Your Marketing Arsenal
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Facebook
• Originally set up for friends
• Privacy levels & group creation enables control
of information
• Communities can use to share:
– News stories
– Event photos
– Organization updates
97
LinkedIn
• Dedicated to professional networking
• Widely-used by economic developers
• Platform to create discussion groups
98
Twitter
• Appeals to a generation of staff and potential
clients who appreciate
• Tweets are a way of sharing positive stories
about your community
99
Other Social Media
Wikipedia
• Widely consulted source
of information
• Ensure that information
about the community is
accurate
Mobile Phone Apps
• Allow users to locate
entertainment and other
services
100
Getting Started
• E-mail address required
• Create your profile and upload a photo or avatar (a
representation of yourself or your alter ego). You can
complete the basics and add more details later.
• Decide how public or private you want your profile to be.
• Start finding friends and inviting them to connect with you.
• Upload photographs or videos and share links to Web sites or
blogs.
• Post notes or comments to others’ profiles.
• Join groups or causes to expand your personal network and
connect with others who share your interests.
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Reaching Your Audience Through
Social Media
•
•
•
•
•
•
•
•
•
Improve your design, look professional
Paid ad campaigns
Contests and giveaways
Respond to your commenters
Ask questions
Offer an incentive, deals or discount codes
Post photos
Promote events
Use strategic messaging, make sure social media is part of
your marketing plan
102
Louisiana Economic Development
Marketing & Attraction Course
Regional & State Marketing
Strategies and Plans
103
Louisiana Economic Development
Marketing & Attraction Course
Marketing Strategies & Tactics
104
Marketing Strategies & Tactics
• Emphasize key messages
• Provide access to research data
• Create materials compatible with channels of communication
• Show understanding of the industry segment
Knowledge Based Marketing
105
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Strategies for Target Marketing
Determining Channels for
Communications:
• Trade Shows
• Direct Mail
• Printed Advertisements
• Internet
• Industry Visits
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Certified Sites
108
Certified Sites
109
Certified Sites
110
Marketing Your Community
to High-Tech Companies
Presented by
Sharon Younger
111
To Reach the Knowledge-Based
Economy, You Must Use KnowledgeBased Marketing
Knowledge is Power!
112
Know the Industry:
What is High-Tech?
113
American Electronic Association and
NASDAQ* define the High-Technology
industry as:
45 NAICS Codes
3 Categories
• High-Tech Manufacturing
• Communications Services
• Software and Computer Related Services
*Publishers of CyberEducation and Cybercities
114
The High-Tech Definition by
Standard Industrial Classification Codes
High-Tech Manufacturing
• Computers and Office Equipment
•
•
•
•
•
•
3571 Electronics and Computers
3572 Computer Storage Devices
3575 Computer Terminals
3577 Computer Peripherals
3578 Calculating and Accounting Machines
3579 Office Machines
• Consumer Electronics
• 3651 Household Audio and Video Equipment
• 3652 Phonographic Records and Prerecorded
Tapes & Discs
115
The High-Tech Definition by
Standard Industrial Classification Codes
• Communications Equipment
– 3661 Telephone and Telegraph Apparatus
– 3663 Radio and TV Broadcast and Communications Equipment
– 3669 Other Communications Equipment
• Electronic Components and Accessories
–
–
–
–
–
–
–
3671 Electron Tubes
3672 Printed Circuit Boards
3675 Electronic Capacitors
3676 Electronic Resistors
3677 Electronic Coils, Transformers, and Inductors
3678 Electronic Connectors
3679 Other Electronic Components
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The High-Tech Definition by
Standard Industrial Classification Codes
• Semiconductors
– 3674 Semiconductors and Related Devices
• Industrial Electronics
–
–
–
–
–
–
–
3821 Laboratory Apparatus
3822 Environmental Controls
3823 Process Control Instruments
3824 Fluid Meters and Counting Devices
3825 Instruments to Measure Electricity
3826 Laboratory Analytical Instruments
3829 Other Measuring and Controlling Devices
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The High-Tech Definition by
Standard Industrial Classification Codes
• Photonics
– 3827 Optical Instruments and Lenses
• Defense Electronics
– 812 Search and Navigation Systems, Instruments and
Equipment
• Electromedical Equipment
– 3844 X-Ray Apparatus and Tubes and Related Irradiation
Apparatus
– 3845 Electromedical and Electrotherapeutic Apparatus
118
The High-Tech Definition by
Standard Industrial Classification Codes
• Communications Services
–
–
–
–
–
4812 Radiotelephone Communications
4813 Telephone Communications
4822 Telegraph and Other Message Communications
4841 Cable and Other Pay Television Services
4899 Other Communications Services
• Software and Computer-Related Services
– Software Services
• 7371 Computer Programming Services 7372 Prepackaged Software
• 7373 Computer Integrated Systems Design
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The High-Tech Definition by
Standard Industrial Classification Codes
• Data Processing and Information Services
– 7374 Computer Processing and Data Preparation
– 7375 Information Retrieval Services
– 7376 Computer Facilities Management Services
• Rental Maintenance and Other Computer-Related
Services
– 7377 Computer Rental and Leasing
– 7378 Computer Maintenance and Repair
– 7379 Other Computer Relates Services
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Know the Process:
What is Important to High-Tech?
121
Key Factors to High-Tech Growth
• Venture Capital
• University R & D Programs/Spending
• Highly Skilled Workers
• Other High Tech Companies
• Reliable Power
• Quality of Life
122
Know The Market:
Where is High-Tech?
123
Top 60 Cybercities
Albuquerque
Atlanta
Austin
Baltimore
Bergen, NJ
Boise City
Boston
Boulder
Charlotte
Chicago
Cincinnati
Cleveland
Colorado Springs
Columbus, OH
Dallas
Dayton
Denver
Detroit
Dutchess County, NY
Fort Lauderdale
Fort Worth
Hartford, CT
Houston
Huntsville
Indianapolis
Kansas City
Los Angeles
Melbourne, FL
Miami
Middlesex, NJ
124
Top 60 Cybercities
Milwaukee
Minneapolis-St. Paul
Monmouth, NJ
Nassau, NY
New Haven, CT
New York
Newark
Norfolk
Oakland
Oklahoma City
Orange County, CA
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, OR
Raleigh
Rochester, NY
Sacramento
St. Louis
Salt Lake City
San Antonio
San Diego
San Francisco
San Jose
Seattle
Tampa
Ventura, CA
Washington, DC
West Palm Beach
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Effective Marketing
• Transfer Knowledge
• Be Professional
• Embrace Technology
126
Innovate!
• Go Beyond the High-Tech Definition
– Medical
– Agriculture
• Update the “Old Economy”
• Support Entrepreneurs
127
Sports Performance Core Industries
128
Core Industries and Support Industry Groups
129
Sports Performance and Sports Tourism
130
Manatee Sports Performance Cluster
131
What You Need to Know for
Retail and Consumer Driven
Development
• Average Daily Traffic Counts-TN
• Tennessee Dept. of Transportation
http://www.tdot.state.tn.us/projectplanning/adt.asp
• Building Permits
• U.S. Census Bureau (city or county must report)
http://censtats.census.gov/bldg/bldgprmt.shtml
• Retail Sales, Sales Tax Collections by County
• Tennessee Department of Revenue
http://www.tn.gov/revenue/statistics/index.shtml
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Retail Sales Potential Report
Retail Stores
Total Retail Sales
Demand
Supply
Opportunity
(Consumer
Expenditures)
(Retail Sales)
Gap/Surplus
207,362,710
267,338,684
(59,975,974)
43,586,764
37,821,101
3,178,144
58,174,162
48,261,332
8,408,157
(14,587,398)
(10,440,231)
(5,230,013)
4,253,052
2,454,059
1,798,994
12,649,840
11,267,556
1,382,284
(8,396,788)
(8,813,497)
416,710
Food and Beverage Stores
Grocery Stores
Supermarkets, Grocery Stores
Convenience Stores
27,310,670
25,176,187
23,989,581
1,186,606
13,911,063
8,045,949
6,914,163
1,131,786
13,399,607
17,130,238
17,075,418
54,820
Building Material, Garden Equip Stores
Building Material and Supply Dealers
Home Centers
19,062,704
17,544,897
6,872,039
42,893,727
37,104,869
13,869,003
(23,831,023)
(19,559,972)
(6,996,964)
General Merchandise Stores
Dept. Stores (Excl Leased Depts)
Other General Merchandise Stores
25,992,414
12,213,021
13,779,393
28,460,934
632,341
27,828,592
(2,468,520)
11,580,680
(14,049,199)
Motor Vehicle and Parts Dealers
Automotive Dealers
Automotive Parts/Accsrs, Tire Stores
Furniture and Home Furnishings Stores
Furniture Stores
Home Furnishing Stores
133
Marketing Effectiveness
Marketing Strategy
Rating Effective
Internet/website
79%
Out-of-town meetings with businesses
72%
Site selection consultants and familiarization tours
64%
Public Relations
64%
Special Events
56%
E-mail
48%
Targeted lead development databases
43%
Slogans, logo and identity
38%
Trade shows and conferences
36%
Direct mail
26%
Brochures
20%
Print advertising
16%
Videos
14%
Online advertising
10%
TV/radio advertising
10%
Telemarketing
6%
134
Marketing Effectiveness vs Spending
Marketing Strategy
Average Budget
Allocation
Rating Effective
Internet/website
17%
79%
Print advertising
11%
16%
Brochures
11%
20%
Trade shows and conferences
11%
36%
Out-of-town meetings with businesses
10%
72%
Public Relations
8%
64%
Special Events
7%
56%
Site selection consultants and familiarization tours
6%
64%
Direct mail
5%
26%
E-mail
4%
48%
Slogans, logo and identity
3%
38%
Videos
2%
14%
Targeted lead development databases
2%
43%
Telemarketing
1%
6%
Online advertising
1%
10%
TV/radio advertising
1%
10%
135
Incentives
Direct Financial Incentives
• Loans and loan guarantees
• Revolving loan funds
• Industrial development bonds
• Grants
• Venture Capital
136
Incentives
Tax Incentives
• Tax exemptions or abatements
• Deductions
• Low income housing tax credits
• Historical rehabilitation tax credits
• Accelerated depreciation
• Job creation tax credits
Other
• Job training
• Infrastructure improvements
• Technical assistance
137
Incentive Criteria
• Number of jobs created
• Quality of jobs
• Minimum investment requirements
138
Incentive Policy
• Understand and respect the community’s attitude toward
incentives
• Develop a cost benefit analysis policy for the use of the
incentive
• Use clawbacks to protect the community and ensure that the
company delivers upon its promises
• Determine exactly to whom the incentives are targeted
• Undertake an economic impact analysis in order to
understand the true benefit of the project
• Consider offering available incentives not just to new
businesses, but to expanding existing local businesses as
well
139
Jackson
97 Directors Row
Jackson, TN 38305
O: 731.668.7367
F: 731.668.0042
Memphis
2157 Madison Ave
Memphis, TN 38104
O: 901-272-5005
F: 901-272-5002
www.younger-associates.com
140