City Council February 21, 2012 Ced San Angelo City Council

Market Assessment | 1Advance San Angelo

San Angelo Comprehensive Economic Development Strategic Plan

City Council MeetingFebruary 21, 2012

Agenda

1. Project Overview

2. Market Assessment

3. Target Industry Analysis

4. Goal Areas and Priority Recommendations

5. Next Steps – IMPLEMENTATION

Project Process Overview

Economic and SWOT Analysis

Target Industry Analysis

1

2

3

4

Project Set Up and Stakeholder Engagement

Form steering committee, develop project website, collect stakeholder input through interviews, focus groups, and business survey

Collect and analyze baseline economic, demographic, and workforce data, map assets, identify strengths, weaknesses, opportunities, and threats

Identify target industry sectors to match between assets and site selection requirements, conduct reverse site selection, identify needed workforce skills

Action/Marketing Strategy and Implementation

Develop actionable strategies, create implementation matrix, provide performance metrics

Resident Survey FindingsMarket Assessment

Business Survey FindingsMarket Assessment

Identification of Benchmarks – Criteria

• City must have a population between 80,000 and 200,000• City must be the primary economic and population center of the region• City must be at least 75 miles away from a major metropolitan area• There must be a military base within the region• There must be a small public university in the city

Market Assessment

AT A GLANCE

Source: U.S. Census Bureau, Bureau of Labor Statistics, Decision Data Resources

USA

308,745,538

24.1%

9.1%

22.29%

$52,048

28.1%

26.6%

Population (2010)

Population Growth (’90-’10)

Unemployment Rate, August 2011*

Labor Force Growth (’90-’10)

Median Household Income (2010)

% Bachelor’s Degree + (2010)

% in 25-44 Age Group (2010)

Amarillo, TX

190,695

20.9%

5.9%

24.93%

$42, 652

20.8%

26.9%

San Angelo, TX

93,200

10.3%

6.8%

15.52%

$38,792

23.2%

24.8%

Wichita Falls, TX

104,553

8.3%

8.2%

6.9%

$40,050

23.1%

26.1%

Abilene, TX

117,063

9.3%

7.4%

20.3%

$38,623

23.0%

26.4%

Texas

25,145,561

48.0%

8.5%

41.2%

$49,651

25.6%

28.1%

•Not Seasonally Adjusted

Lawton, OK Pueblo, CO

96,867

4.6%

5.4%

11.45%

$39,973

21.2%

30.2%

106,595

8.0%

11.4%

25.76%

$35,195

17.2%

24.2%

Market AssessmentMarket Assessment

Market Assessment Answers the Following Questions:• Who is San Angelo?• What Drives the San Angelo

Economy?• How Competitive is San

Angelo’s Business Climate?• How Well Does San Angelo

Support Small Business Development?

• What Makes San Angelo Unique?

SWOT AnalysisMarket Assessment

Strengths• Regional service center for a large

geographical area• Strong industry cluster concentrations in

aerospace/defense, natural resources, and communication services

• Stable economy thanks to large employers in government, healthcare, and education

• Strong agricultural heritage• Proximity to thriving Permian Basin oil and

gas industry• Unique natural assets (Concho River, Lake

Nasworthy)• Wide range of cultural/historical assets• Overall high quality of life• Strong partnerships between SAISD and

Howard College and ASU • Generosity of community and businesses

Weaknesses• Limited professional job opportunities• Relatively low wages and income levels• Loss of young people to other urban areas• Historical lack of focus on target industries• Relatively slow growth in population and

economic base• Limited air travel options• No nearby access to Interstate Highway

system• Community gateways and some primary

transportation corridors have uninviting streetscapes

• Limited amount of available office or manufacturing/ warehouse space

• Limited availability of specialized retail stores • Limited amount of land with direct rail access

SWOT AnalysisMarket Assessment

Opportunities• Improved marketing/branding of San Angelo • Further capitalize on ASU’s connections to

the Texas Tech University system • Strengthen relationships between ASU and

community • New Business Resource Center (BRC)• Foreign-trade zone designation• Build upon regional service center function• Better define roles of economic development

partners, including improved process for working with prospects

• Leverage public investments related to Concho River and Lake Nasworthy to yield greater private investments

• Continued downtown revitalization• Continued focus on expanding air travel

options

Threats• Continued loss of young, educated people• Too much historical focus on being a “low-cost”

community• Relatively slow population growth within San

Angelo, and to a greater extent within the surrounding region

• Reliance on government, healthcare, and education employment makes San Angelo vulnerable to funding cuts from state and federal government

• Limited emphasis on “soft skills” necessary for employment (punctuality, loyalty, courtesy)

• Plant closures are a real threat, particularly for large employers that do not rely on local suppliers or customers

AE Target Industry Selection ProcessTarget Industry Analysis

Target IndustrySector and

NicheRecommendations

Cluster ConcentrationSAN ANGELO, TX TARGET INDUSTRIES

1) Which industries are strong and are concentrated locally or regionally?

2) Do the clusters reflect national growth trends?

Vision Alignment

3) Are there local or regional assets that give industries a competitive edge?

4) Do these clusters meet the goals of the community?

Regional AssetsIndustry Trends

Cluster Concentration –Tom Green County, TXTarget Industry Analysis

Target Industry RecommendationsTarget Industry Analysis

Regional Goods & Services

Energy Agri-Business

Regional Medical Center

Crop and Livestock

Production

Festivals, Sporting

Events, and Outdoor

Recreation

Oil and Gas Products and

Services

Arts and Entertainment

Renewable Energy

Generation and

Distribution

Agricultural Services

Advanced Manufacturing

& Logistics

Fabricated Metals and Machinery

PROPOSED SAN ANGELO, TX TARGET INDUSTRIES AND NICHES

Renewable Energy

Component Manufacturing

“Ports-to-Plains”

Logistics and Distribution

Specialty Retail

Animal Science Research and Development

Information Technology &

Customer Support

Technical Support

Customer Service

Data Storage and

Processing

Medical Equipment and

Supplies

Cyber Security

EnergyTarget Industry Analysis

Description

Consists of firms engaged in the production and distribution of renewable energy and oil and gas, manufacturers that produce equipment or machinery for the renewable energy industry or oil and gas industry, and businesses that process oil and gas for use in other applications.

Market Opportunities

• Oil and Gas Products and Services and Gas Products and Services• Renewable Energy Component Manufacturing• Renewable Energy Generation and Distribution


Global Clean-Energy Market Size, 2000-2010GLOBAL MARKET SIZE, IN $ US BILLIONS

Source: Clean Edge, Inc., 2011

$5,055

$3,553

$760$1,158

$6,120

$2,658

$3,761

$807

23.2%

4.3%

12.6%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2003 2004 2005 2006 2007 2008 2009 2010

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Renewable Energy Percentage of Total U.S. Venture Investments

Renewable Energy Venture Investments ($ Millions)

Clean-Tech Venture Capital Investments in U.S.-Based Companies

Source: PWC Money Tree

U.S. Wind Resources

San Angelo Comprehensive Economic Development Strategic Plan

Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions.Goal 2: Continue to invest in downtown San Angelo and the Concho River.Goal 3: Fully capitalize on the unique opportunities provided by Angelo State University and

Goodfellow Air Force Base. Goal 4: Tap into San Angelo’s innovative culture and leverage small business resources to

support entrepreneurship and minority business development.Goal 5: Clarify and formalize the roles of San Angelo’s economic development partners to

ensure that economic development is streamlined, transparent, and well-understood by all stakeholders.

Goal 6: Improve San Angelo’s image and ensure that marketing efforts highlight regional assets and focus on target industries.

Goal 7: Ensure that workforce development and education programs are connected to the marketplace and support the retention of young professionals.

Goal 8: Engage in specific strategies to grow existing and emerging target industry sectors.

Recommendations

Top 15 Priority Recommendations

• Strategy 1.1: Continue to invest in regional transportation infrastructure, partnering with the Ports-to-Plains Alliance and TXDOT.• Strategy 1.2: Expand opportunities for international trade in San Angelo, both for local businesses seeking to import/export, as well as for foreign enterprises seeking to enter the U.S. market.• Strategy 1.4: Continue to aggressively pursue additional air travel connections.• Strategy 2.1: Continue to support investment in San Angelo’s most unique natural resource, the Concho River, to capitalize on its economic development potential.• Strategy 2.2: Identify specific opportunities for additional businesses and employers to locate in downtown San Angelo.• Strategy 3.1: Involve Angelo State University (ASU) more closely as a key regional economic development partner.• Strategy 3.2: Leverage ASU’s unique strengths for economic development purposes and provide support to ASU programs and research that are related to San Angelo’s target industries.

Recommendations


• Strategy 3.3: Continue the strong collaborative relationship between Goodfellow Air Force Base (GAFB), the City of San Angelo, Tom Green County, and the San Angelo Chamber of Commerce.• Strategy 3.4: Proactively retain military retirees from Goodfellow Air Force Base (GAFB), many of whom have advanced technology skills.• Strategy 4.3: Support and promote San Angelo’s vibrant network of small businesses and entrepreneurs to create a culture of creativity.• Strategy 5.1: Collectively agree upon operating guidelines which describe roles and responsibilities and advance the goal of strong teamwork toward the economic development of San Angelo.• Strategy 5.2: Implement a formalized Business Retention and Expansion Program (BREP) with regular outreach to existing San Angelo businesses.• Strategy 6.1: Promote the “Advance San Angelo” campaign as a unifying initiative for San Angelo’s regional economic development partners.• Strategy 6.4: Build on Lake Nasworthy’s success as a recreational asset to fully capitalize on its economic development potential.• Strategy 7.2: Retain and attract more young people to San Angelo.

Recommendations


• Strategy 1.4: Continue to aggressively pursue additional air travel connections.

• Action Item 1.4.1 Continue to involve regional leaders in the air service and marketing campaign efforts to re-capture Houston as a daily flight destination to and from San Angelo.• Action Item 1.4.2 Maintain a high level of priority amongst regional business and government leaders so that additional destinations can be pursued after daily flights to Houston are successfully re-gained.

Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions.

Recommendations


• Strategy 2.1: Continue to support investment in San Angelo’s most unique natural resource, the Concho River, to capitalize on its economic development potential.

• Action Item 2.1.1 Publicize, promote, and celebrate investments associated with the Concho River.• Action Item 2.1.2 Leverage public investments to yield a much greater amount of private investment, utilizing a public-private approach to develop land adjacent to the Concho River in and near downtown.• Action Item 2.1.3 Promote mixed-use development along the Concho River.• Action Item 2.1.4 Travel to other Texas cities with riverfront districts in or near their downtowns.

–Visit the San Antonio River and Trinity Uptown in Fort Worth.

Goal 2: Continue to invest in downtown San Angelo and the Concho River.

Recommendations


• Strategy 2.2: Identify specific opportunities for additional businesses and employers to locate in downtown San Angelo.

• Action Item 2.2.1 Attract and grow more small businesses to downtown, focusing on daytime retail, bed and breakfasts, restaurants, and artist studios.

–Market downtown as top location for start-ups, relocations, and expansions of local businesses.–Highlight and promote recent growth in new downtown business establishments.–Leverage under-utilized government-owned properties to attract private investment.

• Action Item 2.2.2 Attract a full-service hotel into downtown to boost San Angelo’s ability to draw a greater number of visitors from festivals and larger conferences/conventions.

–Consider offering incentives and using a public/private partnership, to develop the hotel.

• Action Item 2.2.3 Retain and attract the region’s large public sector employers into downtown San Angelo.

–Identify opportunities for large public sector employers to relocate existing facilities into downtown.–Support the retention and expansion of Shannon Health’s existing downtown campus.Goal 2: Continue to invest in downtown San Angelo and the Concho River.

Recommendations


• Strategy 3.2: Leverage ASU’s unique strengths for economic development purposes and provide support to ASU programs and research that are related to San Angelo’s target industries.

• Action Item 3.2.1 Building on ASU’s existing strengths in computer science education, partner with Goodfellow Air Force Base to establish a significant academic and research presence in the field of cyber security.•Action Item 3.2.2 Consider funding an endowed chair at ASU or funding individual ASU professors.

– Fund research in cyber security or computer science as a first priority. – Fund animal science research as a second priority.

• Action Item 3.2.3 Market ASU’s three Programs of Distinction (agriculture, educator preparation, nursing) to the region’s employers and to prospects.• Action Item 3.2.4 Leverage ASU’s association with the Texas Tech University System to identify opportunities to attract education or research functions from Texas Tech University’s Lubbock campus to ASU.Goal 3: Fully capitalize on the unique opportunities provided by Angelo State

University and Goodfellow Air Force Base.

Recommendations


• Strategy 4.3: Support and promote San Angelo’s vibrant network of small businesses and entrepreneurs to create a culture of creativity.

• Action Item 4.2.1 Hold an annual “Inventors and Investors Symposium” that brings together small business owners, entrepreneurs, inventors, and investors from throughout the Concho Valley region.• Action Item 4.2.2 Building on the success of the Concho Valley Angel Network, promote the growth of start-up companies through closer linkages between locally-based investors, entrepreneurs, and small business owners. • Action Item 4.2.3 Prioritize efforts to support San Angelo’s growing arts and creative class community.

–Consider establishing a quarterly Arts Town Hall, which would provide a forum for local artists to engage with public organizations to address any existing barriers to their success.–Work with local artists to protect and expand San Angelo’s emerging arts districts through “art-friendly” zoning and development regulations.–Consider creating an incentive program that provides assistance for the development or expansion of artist studios or artist housing in or near downtown San Angelo.

Goal 4: Tap into San Angelo’s innovative culture and leverage small business resources to support entrepreneurship and minority business development.

Recommendations

Sector-Specific Strategies: Energy

• Develop marketing materials that highlight San Angelo’s location in the top wind energy and oil and gas producing region in the U.S.• Host a regional or state wind energy conference (TREIA or others) and actively participate in major energy conferences (AWEA, Solar Power International, Renewable Energy World Conference).• Identify and market properties that are within the Concho Valley region (but outside of the San Angelo urban area) for large-scale wind farms and solar farms.• More closely link San Angelo’s metal-working industry with renewable energy production equipment.

Goal 8: Engage in specific strategies to grow existing and emerging target industry sectors.

Recommendations

Sample Performance Metrics

Business Climate

• Businesses served through the Business Retention and Expansion program (BREP)

• Ratings of overall business climate through BREP program

Workforce and Education

• Average wage growth

• Local employers’ ratings of workforce

• Changes in ACT/SAT scores and high school graduation rates

• Utilization of workforce development programs

• Ratings of workforce development programs

• Percentage of workers with an Associate’s Degree or higher, and Bachelor’s Degree or higher

Marketing and Business Development

• Number of qualified prospects

• Conversion rates of prospects to new businesses

• New jobs generated

• Average salaries of new jobs

• Tax revenues generated

• Return on Investment

• Availability and utilization of local and state incentive programs

• Performance of businesses receiving incentives

Entrepreneurship and Small Business Development • Number of small businesses started• Patent creation• Venture capital and angel capital flow• Growth in small business exports

Minority Business Development • Number of certified minority businesses• Number of minority businesses started• Minority business revenue growth

Sites & Infrastructure • Absorption of commercial and industrial space• Commercial and industrial vacancy rates• Amount of new commercial and industrial space constructed• Available commercial and industrial properties• Available developable acreage with direct highway access, rail

access, and existing utility service• Available developable acreage with direct highway access and

existing utility service, but without rail access

Strategy Implementation Plan Outcomes• Successful completion of initiatives (Annual Scorecard)

Recommendations

Sample Implementation MatrixRecommendations

10 Questions to Evaluate this Plan

1. Is the plan developed in a collaborative manner?2. Does it reflect and address the current problems and issues facing the

community?3. Does it leverage existing strengths, assets and resources?4. Is the plan realistic and market-based?5. Is it focused?6. Is it results-oriented?7. Does the plan enforce accountability?8. Does it help differentiate the community from competitors?9. Does the plan incorporate best practices?10. Is the plan implementable?

Discussion?8121 Bee Cave Rd., Suite 200

Austin, Texas 78746

PH: 512-225-9322FAX: 512-225-9283

www.angeloueconomics.com

City Council February 21, 2012 Ced San Angelo City Council

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Transcript of City Council February 21, 2012 Ced San Angelo City Council