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DRIVING THE FUTURE A STRATEGY FOR FOSTERING COLLABORATIVE ECONOMIC DEVELOPMENT ALONG THE INTERSTATE-41 CORRIDOR

FEBRUARY 21, 2018ALEX COOKEJON ROBERTS

Image credit: Destin, Florida by Steve Evans from Citizen of the World - Destin, Florida via Wikimedia Commons (CC BY 2.0)

South Main Street Historical District by Royalbroil via Wikimedia Commons (CC BY-SA 3.0)

AGENDA• How we got here

• Key findings

• The strategy

• What matters most

FOUNDED 1995

THREE PRINCIPALS WITH A STAFF OF 12

COMMITTED TO HOLISTIC THINKING & SUSTAINABLE DEVELOPMENT

AUSTIN & SEATTLE OFFICES WITH GLOBAL REACH

WHO IS TIP STRATEGIES?

We have over 20 years of experience

in over 300 unique communities,across 40 states, and 4 countries.

HOW WE GOT HERE…

1

PROJECT GOAL

…develop and implement a planning

process which results in a coordinated and

collaborative strategy for corridor level

economic development, including several

associated support and outreach tasks

that help build capacity for such activities.

SCOPE OF WORK

DISCOVERY• Kick-off meeting• Report review & inventory• Economic assessment• Stakeholder engagement• SWOT Analysis

OPPORTUNITY• Unifying principles• Cluster & target industry validation• Economic development network• Opportunities analysis workshop

IMPLEMENTATION• Implementation strategy• Outreach and branding strategy• Final report and presentation

STAKEHOLDER INPUT

• Roundtable Discussions• Education and workforce development officials• Real estate developers• Economic development and chamber professionals• Young professionals• Transportation and general infrastructure officials

• Individual Interviews• Private employers• Public officials• Economic development professionals

• Advisory Committee (four meetings)

• Linda Bartelt, NEW ERA• Jon Bartz, WEDC• Tom Belter, Oshkosh Chamber of

Commerce• Jerry Bougie, Winnebago County• Naletta Burr, WEDC• Jeci Casperson, New North, Inc.• Jim Cleveland, Envision Greater Fond

du Lac• Eric Fowle, ECWRPC• Tim Hanna (mayor), City of Appleton• Cecilia Harry, Envision Greater Fond du

Lac• Dennis Heling, Shawano County

Economic Progress, Inc.• Carol Karls, Wisconsin Public Service• Rob Kleman, Oshkosh Chamber of

Commerce• Mary Kohrell, Calumet County• Bob Mundt, Fox Cities Chamber of

Commerce

• Jerry Murphy, New North, Inc.• Troy Parr, Oneida Nation• Beth Pritzl, Fox Cities Regional

Partnership• Art Rathjen, Greater Oshkosh EDC• Jeff Sachse, Rawley Point Economic

Advising• Kristan Sanchez, GRAEF• Anthony Snyder, Fox Valley Workforce

Development Board• Sarah Spang, Envision Greater Fond du

Lac• Dave Thiel, Waupaca County EDC• Sarah Van Buren, ECWRPC• Manny Vasquez, Pfefferle Companies,

Inc.• Jason White, Greater Oshkosh EDC• Peter Zaehringer, Greater Green Bay

Chamber of Commerce

ADVISORY COMMITTEE MEMBERS

#2KEY FINDINGS

2

POPULATION TRENDS

Source: US Census Bureau, Population Estimates program

0.95

1.00

1.05

1.10

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2005

= 1

.00

I-41 W isconsin United States

COMPONENTS OF POPULATION CHANGE

U.S. Bureau of the Census (history) via Moody's Analytics

-2 ,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

2011

2012

2013

2014

2015

ImmigrationNet domestic migrationNatural increase (births minus deaths)

Current Rates in Context of Historical Rates

| Historical Range Current Rate

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

Brow

n

Cal

umet

Fond

du

Lac

Out

agam

ie

Win

neba

go

Wisc

onsin

Uni

ted

Stat

es

1990-2016

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

W isconsin I-41 Avg. United States

UNEMPLOYMENT RATES

Source: US Bureau of Labor Statistics, Local Area Unemployment Statistics (state and local), Current Population Survey (national)

Commuting Flows, 2005-2014 I-41 Net Commuters

16,0

69

12,0

18 13,7

91

14,4

56 16,0

07

20,3

12

20,7

64

21,6

51 23,1

86

26,4

91

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

COMMUTING PATTERNS

0

50,000

100,000

150,000

200,000

250,000

300,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

OUTBOUND (Commute from I-41 Region to jobsoutside)

INBOUND (Commute into I-41 Region fromoutside)

LIVE & WORK (Live & work in I-41 Region)

Source: US Census Bureau, Local Employment Dynamics.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 TREN D

M anufacturing 4,764 4,782 2,909 2,760 3,757 4,540 4,675 6,505 6,760 6,988

Health Care & Socia l Asst. 1,617 946 1,883 2,023 1,855 2,147 2,558 2,917 3,500 3,683

Reta il Trade 2,741 2,045 2,518 2,386 2,149 2,180 2,204 2,064 2,389 2,847

Finance and Insurance 424 272 1,143 1,144 902 1,521 1,394 2,429 2,519 2,763

Construction 2,318 2,163 2,431 2,453 2,231 2,521 2,101 1,946 2,022 2,024

NET COMMUTING BY INDUSTRY

Source: US Census Bureau, Local Employment Dynamics

+4,7

64

+4,7

82

+2,9

09

+2,7

60 +3,7

57 +4,5

40

+4,6

75

+6,5

05

+6,7

60

+6,9

88

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

M ANUFACTURING

+1,6

17

+946

+1,8

83

+2,0

23

+1,8

55

+2,1

47

+2,5

58

+2,9

17 +3,5

00

+3,6

83

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

HEALTH CARE & SO CIAL ASST.

N AICS Code & Description I-41 W isconsin US31-33 Manufacturing 18.7% 15.2% 8.0%

62 Healthcare & social assistance* 12.1% 13.4% 13.4%

44-45 Retail trade 10.2% 10.3% 10.6%

72 Lodging, restaurants, & bars 7.4% 7.8% 8.6%

61 Education* 7.4% 8.4% 9.3%

23 Construction 5.7% 4.6% 5.5%

56 Administrative & support services 5.0% 5.2% 6.3%

52 Finance & insurance 5.0% 4.1% 3.9%

81 Personal & other services 4.5% 4.8% 4.9%

42 W holesale trade 4.0% 4.1% 3.9%

9039 Local govt. 3.7% 4.2% 3.6%

54 Professional services 3.6% 4.0% 6.5%

48-49 Transportation & warehousing 3.5% 3.4% 3.5%

55 Corporate & regional offices 2.7% 2.2% 1.4%

11 Agriculture & forestry 1.4% 1.9% 1.3%

71 Arts, entertainment, & recreation 1.4% 1.5% 1.7%

51 Information 1.3% 1.6% 1.9%

53 Property sales & leasing 0.9% 1.1% 1.7%

9029 State govt. 0.6% 1.1% 1.5%

9011 Federal govt. (civilian) 0.6% 1.0% 1.8%

22 Utilities 0.2% 0.3% 0.4%

21 Mining (incl. oil & gas) 0.1% 0.1% 0.4%

INDUSTRY DISTRIBUTION

Source: EMSI 2017.1 – QCEW Employees, Non-QCEW Employees, and Self-Employed

INDUSTRY CONCENTRATION (LQ)

Source: EMSI 2017.1 – QCEW Employees, Non-QCEW Employees, and Self-Employed

0.00 0.50 1.00 1.50 2.00 2.50

Manufacturing

Corporate & regional offices

Finance & insurance

Agriculture & forestry

Construction

W holesale trade

Local govt.

Transportation & warehousing

Retail trade

Personal & other services

Healthcare & social assistance*

Lodging, restaurants, & bars

Arts, entertainment, & recreation

Administrative & support services

Education*

Information

Professional services

Property sales & leasing

Utilities

State govt.

Federal govt. (civilian)

Mining (incl. oil & gas)

ABOVE AVERAGE

BELOW AVERAGE

#2THE STRATEGY

3

WHAT YOU TOLD US

• We don’t want to create a new regional economic development organization

• We need to better align our existing groups and initiatives

• We need a very specific issue/initiative to build a regional coalition around

• What we really lack is a cohesive regional talent strategy

• Access to talent is the overriding challenge that employers are facing

• This issue will influence future investment decisions in the region by key employers.

UNIFYING PRINCIPLES

COHESIVE CONNECTED

INNOVATIVESUSTAINABLE

STRATEGIC PLAN FRAMEWORK

Goal 1. Implement a cohesive regional talent strategy.

Goal 2. Enhance the corridor’s infrastructure and economic competitiveness.

Goal 3. Foster a stronger collaboration ecosystem.

Resource Matrix

Cluster and Target Industry Validation.

Regional Economic Assessment

Report Inventory Summary

GOAL 1

1. Establish an I-41 Corridor talent council to implement the talent strategy.

2. Design and launch a regional talent campaign to support the recruitment of talent to the I-41 Corridor.

3. Design a friends-and-family campaign to inform alumni in other areas of opportunities in the I-41 Corridor.

4. Develop creative incentives designed to attract and retain talent.

5. Build greater awareness of the I-41 Corridor’s job opportunities and strong employment base.

6. Streamline business engagement and input mechanisms.

7. Continue to support education and training institutions in strengthening the I-41 Corridor’s “homegrown” talent pipeline.

Implement a cohesive regional talent strategy.

GOAL 2

1. Strengthen collective efforts to improve and expand the region’s transportation and mobility infrastructure.

2. Develop the I-41 Corridor as a “smart corridor.”

3. Develop a regional broadband strategy.

4. Expand the inventory of competitive industrial sites and buildings in the region to accommodate business expansions and relocations.

5. Explore the use of regional, revenue-sharing models to support regional economic development and infrastructure projects in the I-41 Corridor.

Enhance the corridor’s infrastructure and economic competitiveness.

GOAL 3

1. Advocate forcefully and collaboratively around key infrastructure issues.

2. Establish new opportunities for regional stakeholders to connect and work together on important regional economic development issues.

3. Launch an internal marketing campaign designed to reinforce the collective approach for the region and create a sense of regional identity within the corridor.

4. Fully leverage Microsoft’s investments in the region to influence internal and external perceptions of the I-41 Corridor.

Foster a stronger collaboration ecosystem.

TARGET INDUSTRIES VALIDATION

PRIMARY EDOs IN THE REGION

Aviation & AerospaceAviation & Aerospace

Energy SystemsEnergy Systems

Food & BeverageFood & Beverage

Water IndustryWater Industry

Defense IndustryDefense Industry

Marine ManufacturingMarine Manufacturing

Forest Products, Packaging, LumberForest Products, Packaging, Lumber

AutomotiveAutomotive

FoxconnFoxconn

Data CentersData Centers

Wind PowerWind Power

New NorthNew North

Advanced ManufacturingAdvanced Manufacturing

Digital Media & EntertainmentDigital Media & Entertainment

Health Care & Medical TechnologyHealth Care & Medical Technology

Logistics & DistributionLogistics & Distribution

Corporate HeadquartersCorporate Headquarters

Financial ServicesFinancial Services

Greater Green Bay ChamberGreater Green Bay Chamber

Fox Cities PartnershipFox Cities Partnership

Advanced ManufacturingAdvanced Manufacturing

Business ServicesBusiness Services

Food & Bev. ProcessingFood & Bev. Processing

Heavy Transport Mfg.Heavy Transport Mfg.

Greater Oshkosh EDCGreater Oshkosh EDC

AviationAviation

ManufacturingManufacturing

Information TechnologyInformation Technology

Ag. ProductionAg. Production

Business & Insurance ServicesBusiness & Insurance Services

Education & Knowledge CreationEducation & Knowledge Creation

Engine ManufacturingEngine Manufacturing

Food ProcessingFood Processing

Health ServicesHealth Services

Metalworking TechMetalworking Tech

Motor Vehicle ElectronicsMotor Vehicle Electronics

Printing ServicesPrinting Services

Production Tech. & Heavy MachineryProduction Tech. & Heavy Machinery

Transportation & DistributionTransportation & Distribution

Envision Greater Fond Du LacEnvision Greater Fond Du Lac

TARGET SECTOR WORD CLOUD

BUBBLE CHART

Source: EMSI Complete Employment - 2017.3

Paper & Packaging, 14.09

Printing Serv ices, 5.84

Production Tech. & Heavy Mach., 4.41

Food Processing & Manufacturing, 2.71 Insurance Services, 2.50

Automotive, 2.48

Downstream Metal Products, 1.67

Transportation & Logistics, 1.21

Business Services, 0.97

IT & Analytical Instruments, 0.60 Hospitality & Tourism, 0.59

Aerospace Vehicles & Defense, 0.39 Financial Serv ices, 0.42

-4.00

1.00

6.00

11.00

16.00

21.00

-20% -15% -10% -5% 0% 5% 10% 15% 20% 25%

Loca

tion

Quo

tient

2017-2022 Projected Job Growth

SUGGESTED REGIONAL TARGET CLUSTERS

Aerospace Vehicles & Defense

Automotive

Business Services

Metalworking Technology

Financial Services

Food Processing &

Manufacturing

Hospitality & Tourism

Info. Tech. & Analytical Instruments

Insurance Services

Paper & Packaging

Printing Services

Production Tech. & Heavy

Machinery

Transportation & Logistics

Harvard Cluster NAICS Description2016

LQ2016Jobs

2016-2021% Change

2016 TotalEarnings

Aerospace Vehicles & Defense 336411 Aircraft Mfg. 0.90 582 21% $91,909

Automotive

336120 Heavy Duty Truck Mfg. 36.16 2,818 -22% $79,379331511 Iron Foundries 15.82 1,600 -17% $73,095336211 Motor Vehicle Body Mfg. 11.89 1,938 -2% $87,947336320 Motor Vehicle Electrical & Electronic Equipment Mfg. 2.66 455 23% $70,635

Business Services

551111 Offices of Bank Holding Companies 7.18 260 -18% $93,094561422 Telemarketing Bureaus & Other Contact Centers 2.98 4,177 7% $40,020551114 Corporate, Subsidiary, & Regional Managing Offices 1.95 11,783 15% $113,469541614 Process, Physical Distribution, & Logistics Consulting Services 1.93 703 31% $55,468541330 Engineering Services 0.86 2,345 0% $92,191541511 Custom Computer Programming Services 0.68 1,770 19% $92,296518210 Data Processing, Hosting, & Related Services 0.57 492 14% $75,848541690 Other Scientific & Technical Consulting Services 0.48 323 29% $76,413541611 Administrative Mgmt. & General Mgmt. Consulting Services 0.32 636 17% $76,783541512 Computer Systems Design Services 0.30 840 21% $86,502

Downstream Metal Products

332439 Other Metal Container Mfg. 6.22 268 19% $58,612332999 All Other Miscellaneous Fabricated Metal Product Mfg. 4.32 961 -3% $62,177332321 Metal Window & Door Mfg. 1.95 335 32% $64,948

Financial Services

522120 Savings Institutions 1.12 386 -26% $71,568523120 Securities Brokerage 0.85 682 -12% $131,213523930 Investment Advice 0.53 322 26% $69,942523920 Portfolio Mgmt. 0.42 267 23% $156,890

I-41 REGIONAL CLUSTERS6-digit NAICS industries with employment of 250+ organized into Harvard Business School’s US cluster mapping groups and ranked by location quotient (LQ)

Source: EMSI Complete Employment - 2017.3

WHAT MATTERS MOST

• Corridor talent development alone won’t meet the needs of your industries.

• The idea of a talent council is essential for redefining the corridor.

QUESTIONS

THANK YOU

2905 San Gabriel StreetSuite 205Austin, TX 78705512.343.9113www.tipstrategies.com

Image Credit :Austin_Texas by Ed Schipul via Flickr (CC BY-SA 20)