State lines begin to blur in the 'mega-region'

Kelly O’Brien is the president and CEO of the Alliance for Regional Development, which launched in conjunction with a 2012 study by the Paris-based Organisation for Economic Cooperation and Development that analyzes challenges and opportunities within the Southeastern Wisconsin-Chicagoland-Northwestern Indiana “mega-region.”

The study recast these three geographics as one large economic engine that could reach its full potential through additional collaboration across several areas.

The Alliance recently held its sixth annual summit, and Milwaukee Commerce spoke to O’Brien about the current state of economic cooperation within the region.

Q: The original OECD report came out in 2012. Where have you seen progress since then, and what still needs some work?

A We frstill have a long way to go, but the concept of regional economic development was so foreign just a mere six or seven years ago. Now, I believe the concept is something that people are more familiar with. Data shows that regions compete against regions. Although there should absolutely be sharp elbows when it comes to traditional economic development, business location and relocation, it’s not mutually exclusive. Working together across state lines — whether it’s on transportation policy and prioritizing projects, having a very mobile work force and (streamlining) licensing requirements and scaling training programs, recognizing clusters — it’s a cliché to say win-win, but that’s really what happens. You really have to be scaling these assets and sharing these best practices. The numbers continue to tell us that our mega-region is a critical component to the national economy. Yet we are lagging behind. Q: What were some of the main takeaways from the summit?

A: So often in my role leading the alliance, we find people who really do not understand the assets that are literally in their backyard. When we started organizing this year’s summit, everybody has heard about Foxconn going into Wisconsin. But they don’t necessarily know what that means, what they do and the impact they can have, not only for Wisconsin but for the mega-region. So we were really honored that leadership from Foxconn spoke (at the summit), and helped people better understand who they are and what they’re going to do. We built the day around highlighting these assets, from Foxconn in Wisconsin to U.S. Steel and the $750 million investment that it is making in its Gary, Indiana plant.

Q: How is Foxconn’s arrival changing the region, and how will it change the region in the future?

A: I think it’s a little early for now, other than the buzz that it has created — which I think is a real positive, that they did select the Midwest, specifically Wisconsin. I think it has the opportunity to be very transformative. And based on Dr. (Louis) Woo’s comments at the summit, Foxconn’s leadership understands the strategic choice of being in Wisconsin and that it’s a part of the mega-region. It’s my job to help the other leaders in Illinois and Indiana understand where benefits can be realized without taking away from Wisconsin. Wisconsin did the recruitment, they offered the incentive package. They should take the first bite of the apple to the furthest extent that they possibly can. But then, let the mega-region take the second bite of the apple.

Q: The summit included two speakers from South Carolina. How is their perspective relevant to the current discussions around Foxconn?

A: Spartanburg back in the 1990s, and really looked at that in terms of lessons learned. It has had multiple expansions, and the number of employees are in the range of what Foxconn expectations are. They were really successful with doing a supply chain cluster strategy, that the alliance is now looking at to undertake in 2019. That has resulted in South Carolina being the No. 1 exporter of tires in the United States. The question has become when we have assets like Foxconn, how as a mega-region should we be thinking about the opportunities that these entities bring to us to continue to create wealth?

Q: How important is it for business and political leaders to think of this as one region?

A: Critical. It is appropriate for political leaders and decision makers to have their state, their county, their city as their No. 1 priority. That is appropriate, and that shouldn’t change. But it’s equally appropriate to say that there are areas where cooperation brings such benefits. So we can’t let Lane A, traditional economic development, prohibit us from being successful in Lane B, which is working together in ways that will ultimately help grow and lift the regional economy.