The New North: From Concept to Reality
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Transcript of The New North: From Concept to Reality
The New North:From Conceptto Reality
The New North Measuring Up Looking Ahead Moving Ahead
How it Got Started
Networking Welch & Winters
The Bay Area WDB joins in
The project evolves
The Fox Valley WDB – “What’s happening?”
The
The concept of a regional plan emerges
The
The Plan is Launched!
October 2004
Key players/leaders emerge
The Governor speaks
The New North Measuring Up Looking Ahead Moving Ahead
Private sector leadership
Money
A plan
A professional staff
Buy in
The New North Measuring Up Looking Ahead Moving Ahead
The Keys to the New North
Is the New North plan a success?
• Basis for forming the New North Economic Partnership and all that followed
• Outside assessment – “We want a plan like the New North plan.”
• Stimulated economic development thinking within the New North region
• Led to other regional plans Centergy, Grow North, UP/Wisconsin Border Region
MN
IA
WI
MI
UP/WI Border Region
Regional Organizationand Thinking
Measuring Up:What has happened and where are we?
Leverage the regional brandAttract, develop and retain
diverse talentAdvance educational attainmentTarget growth opportunitiesBuild entrepreneurial climate
and small businessesIncorporate sustainability
The New North Measuring Up Looking Ahead Moving Ahead
Key Strategies
Formation of the New North Inc. A strategy to work the plan Hiring a first rate executive
director The economic summits The branding initiative Targeted initiatives
The New North Measuring Up Looking Ahead Moving Ahead
Key Events Since 2004
Some Leading EdgeThinking and Action
The New North Measuring Up Looking Ahead Moving Ahead
The Wind Energy Cluster
Cellulosic Bio-Fuels Studies and Plans
Sustainability and Green Jobs
Looking Ahead:The New Normal Economy
Perspective &Attitude Adjustment
The New North Measuring Up Looking Ahead Moving Ahead
There is and will be bad economic news for at least six more months.
The most successful Wisconsin industries – paper and dairy- came out of economic crisis
Many Wisconsin industries were initial failures - paper
T
Source: The National Bureau of Economic Research
The New North Measuring Up Looking Ahead Moving Ahead
The Last 11 Recessions
What makes this recession different from the last five
major recessions?1. 28 years since last major downturn2. First recession experience for
1+ generation(s)3. The multiple sources of economic trouble &
risk4. The speed and depth of the economic
downturn5. The first major recession in
the age of the Internet
The New North Measuring Up Looking Ahead Moving Ahead
2003 1.4 million 2004 1.85 million 2005 1.95 million 2006 2.07 million 2007 1.81 million 2008 .95 million
2009 .55 million
Housing = 4% GDPNormal Replace/Growth 1.3 million
The New North Measuring Up Looking Ahead Moving Ahead
U.S. Housing Starts
2004 17.7 million 2005 16.9 million 2006 17.0 million 2007 16.1 million 2008 13.2 million 2009 (Est.) 9.9
millionDecline: 18% in 2008; 25% in 2009Autos = 3.5% of GDPPast declines: 21% in 1974;19.1% in 1980
The New North Measuring Up Looking Ahead Moving Ahead
U.S. Auto Sales
The GlobalEconomy 2008
World Population (Market) 6.5 Billion
World Economy (GDP) $60.6 Trillion
U.S. Population 0.3 Billion
U.S. Economy $14.4 Trillion
EU Economy $18.4 Trillion
China’s Economy $4.3 Trillion
Source: 2006 Estimates IMF and World Bank
The New North Measuring Up Looking Ahead Moving Ahead
Furloughs and wage freezes and give backs
Mercury Marine Milwaukee labor contracts State furloughs
Unemployment Housing glut/Housing cycle Consumer deleveraging Consumer savings rate> – to + New financial regulations Generational reality check
The New North Measuring Up Looking Ahead Moving Ahead
Economic Excess/Overhang
The New North Measuring Up Looking Ahead Moving Ahead
The Budget Deficit:A Threat to the Dollar
So what is the“New Normal”?
Savings Rate Spending Work Life Standard of Living
Consumer:
The New North Measuring Up Looking Ahead Moving Ahead
Regulation Outsourcing Globalization Business Cycles
Business:
The New North Measuring Up Looking Ahead Moving Ahead
So what is the“New Normal”?
Moving Ahead: Where do we gofrom here?
The New North Measuring Up Looking Ahead Moving Ahead
In the New Normal economy, where is
the advantage?
A back to basics economy Huge global markets A versatile workforce Alignment with market
opportunities
A
Energy Fiber Protein
The New North Measuring Up Looking Ahead Moving Ahead
Key Global Market Demand
The New North Measuring Up Looking Ahead Moving Ahead
Some Economic Opportunities
Waste transformation & technology
Higher education & training International direct investment
Why waste transformation?
• New North is full of waste producers – meat packing, paper, dairy farms and processors, etc
• Waste transformation is green • Academic and private sector research
assets• Some proven models & pilots e.g.
Encap• The world’s largest fresh water clean
up project.
Higher Education and Workforce Training
• Large markets – global markets• UW, private colleges, proprietary,
and WTCS assets• Private sector training programs• Good paying jobs• Students as “educational tourists”
Foreign Direct Investment
• The record of foreign direct investment in the New North
• A different investing perspective and timeline
• An interest in R&D – Fincantieri, Kikkoman, Roche
• UW Task Force on International Investment
Focus on the plan: Most regions don’t have a strategic plan
Think globally: The markets increasingly are over there
Position for the next recovery: It will come and those with a good plan will prosper
The New North Measuring Up Looking Ahead Moving Ahead
Parting Thoughts
David J. Ward, Ph.D., CEO
Phone: (608) 279-3393
Email: [email protected]
Fax: (608) 441-8064
Web: www.northstareconomics.com