Recommendations for Transylvania County Economic Development Approach to Marketing Targeted Industries Independent Economic Development Task Force March 19, 2014
Why is this process undertaken 1. Times have changed for Transylvania, especially in the last decade. 2. Current efforts, while hard-fought, have not met ever-rising expectations. 3. County Commissioners hired Jeannette Goldsmith, a consultant with significant experience with corporate relocation. 4. Ms. Goldsmith’s recommendations can be found: http:// www.transylvaniacounty.org/content/independent-economic-development-task-force
5. She recommended a new economic development organization and a list of targeted industries. 6. This task force volunteered, and was commissioned to analyze her approach and develop independent recommendations for: a. b. c.
Economic Development Organization Mission/Vision for the new organization, and Targeted industries with an initial marketing plan.
Agenda 1. 2. 3. 4. 5.
Re-Introduce Team Purpose and Scope of tonight’s discussion Marketing approach recommendation Targeted industries recommendation Next steps
Transylvania = all of county, city, towns
Independent Economic Development Task Force Members • David Bradford • Karen Gleasman, Chair • Ruth Harris • Billy Higgins • David Neumann • David Watkins • Jackie Whitmire
Local business owners & leaders, executives, lawyer, agribusiness, manufacturing, strategy, marketing, quality, large and small business experience, community leaders, not afraid of a little confrontation, active learners, good listeners, able to leap tall buildings….
Purpose/Scope of Tonight’s Discussion • On January 29th, 2014 we discussed: Recommended Economic Development Organization structure (and how we got there) Initial mission and vision vimeo.com/85673809 video of first presentation, courtesy of Tonight we’re here to discuss: Daily Waterfall & Michael Targeted industries Trufant Initial marketing approach
Recommended Approach to Marketing
David Bradford ‌.created the proposal modified (ever so slightly) by rest of the task force‌.
Changing gears – targeted industries, but first… • Remember J. Goldsmith indicated that initially and mostly, economic development growth would come from existing business retention and expansion Must do this well! Some terminology clarification for this presentation • Welcomed industries – those who approach us and are consistent with our Transylvania vision • Targeted industries – those which we actively recruit next discussion
Recommended Targeted Industries Process • Brainstormed 27 (+7 from J. Goldsmith) • Sorted via North Carolina Department of Commerce Targeted Growth Clusters, eliminating retention & growth of current businesses • Ranked via: Wages & Likelihood of Attracting, and Fit with Transylvania and Ease of Investment • Selected industries ending up in both positive quadrants • NOT a completely thorough, fine-tuned selection process • Good list from which to start
Brainstormed Targeted Industry List 10/9/2013 Goldsmith Industries Nutraceuticals Outdoor Recreation Equipment
Industries
Aerospace industry parts
Industries
Cut & Sew
Food and Beverage
Composites 3D Printing Consider methods of mfg: e.g. precision maching, web Environmental industries, e.g. recycled matls -> t-shirts based
Automotive Parts
Brevard College
BRCC
Sports, Health, and Wellness Bamboo
Camps
Solo Worker
Destination spa
Medical equipment
Tourism
Destination health club
Labs e.g. biomedical
Industries
Medical care recovery
Target Company Profile Rev range: $50K $50M Number of employees: 1-150 Retention/expansion of current businesses Quality of place is big draw Potential for above average pay
Research lab: e.g. farm/agri Build musical instruments Food processing, e.g. apples More movies here Artisanal agriculture, e.g. Music recording studios mustards, Do More bars
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Expansion of TVS Parts/supplies for existing comp., e.g. cans for OSKAR BLUES More like Everett Farms, Busy Bee
Events Continuing care NOT in conflict with quality of place
9
1st Sort: NC Targeted Growth Clusters From Report Released 1/24/14: North Carolina Economic Development Board Recommended Strategies for Economic Growth 2014- 2024 North Carolina Jobs Plan December 2013
NC Targeted Growth Clusters – Wage Rate & Growth
y; r t s du
in d e t rge ates a t * a e duplic som
Our List Fit with These
Not a Good Fit with These
Manufacturing
Transportation Logistics
************ ***** *** ****** ***** ****
Agriculture, Forestry & Food IT/Software Hospitality, Tourism, Entertainment Bio Pharma Business Services
Energy Knowledge Creation Military
Wages
Fit with Transylvania
Comparative ranking of brainstormed industry list
Likelihood of attracting 2/19/2014
Ease of investment 12
Our Ranking was Subjective – Gut Feel • Wages – • Potential of approaching Hendersonville/Buncombe average ~$18/hr • Career advancement potential with wage growth
• Likelihood of Attracting • Size was about right • Decent reasons to be here and not elsewhere • Some supporting industries would need demand first before relocating here (sequencing issue), e.g. precision machining
Higher Wage Industries We Can Attract
Wages
*
*
rge t a t a
ry t s u nd ed i
Likelihood of attracting
Notes: Detailed upper right quadrant industries will be revealed Though brainstormed, the group had a natural bias for higher probability results Nothing significant with position within a quadrant Yes, we could debate the details ALL NIGHT LONG Yes, the Economic Development Organization needs to build on these conclusions
Our Ranking was Subjective – Gut Feel • Fit with Transylvania • Consistent with community assets and demographics • Started looking a lot like “likelihood to attract”
• Ease of Investment (for new business) • Do we need major infrastructure modifications? • Are buildings/property available? • Note: this one could change with focused pre-investment by Transylvania
Fit with Transylvania
Easier to bring in/good fit for Transylvania d e t e targ
*
try s u in d
Ease of investment
Notes: There is a strong sequencing conclusion to this one, e.g. if we had more industries requiring precision machining it would “fit” better, now. Population demographics influenced “fit” Community assets, e.g. music and nature, also had a strong influence on “fit” Yes, we could debate the details ALL NIGHT LONG
Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants) • Small/Medium Manufacturing, e.g. • Outdoor recreation equipment manufacturing • Build musical instruments
• Destination health club/spa • Camps • Sports Health & Wellness • Events/Conferences • Music recording industries • Motion picture industries
Decent waged, less “unique” fit, easier to bring in and attract industries • Bio Pharma/Tech • Medical equipment • Artisanal agriculture • Solo workers including tele/internet customer service from home
Rank Brainstormed targeted industries Continuing Care Medical Care Recovery Nutraceuticals Medical Equipment Research Labs (Pharm/Agra, Biomedical) Solo Workers Call Centers Online/Tele Cust Service from home Build musical instruments 3D Printing Outdoor Recreation Equipment Cut & Sew Auto Parts Aero Parts Composites Environ Industries - recycled matls to t's Spec mfg, e.g. precision machining Destination healt club/spa Camps Sports Health Wellness Artisanal agriculture Food processing Food & Beverage More like Busy Bee Events/Conferences More movies Music Recording Studios Tourism
Uniquely TC Lo Hi x x x x x x x x x x x x x x x x x x x x x x x x x x x x
Ease to bring in Lo Hi x x x x x x x x x x x x x x x x x x x x x x x x x x x x
Wages Lo x x
Hi
x x x x x x x x x x x x x x x x x x x x x x x x x x
Liklihood to Attract Lo Hi x x x x x x x x x x x x x x x x x x x x x x x x x x x x
Details here for you to peruse, judge, and debate‌. later.
Let’s Review our Deliverables… Your Independent Economic Development Task Force has delivered: under budget (budget - $130,000, actual <$5,000) ahead of schedule (target – 12 months, actual – 8 months) this is the 26th meeting of the task force
Detailed initial marketing approach – Developed/presented by David Bradford
TC NC
Deliverable Review
ď&#x192;źRecommendation for a modified Economic Development Organization
Economic Development Organization Structure on i t i os p ) et bold n 3 ( in w d e e t 5 n ligh h hi g
s
Board of Directors â&#x20AC;&#x201C; 11 members Executive Director
New Business Development
Marketing
Account Executive
Marketing Specialist/ Community event coordinator
Asst to Account Executive
Heart of Brevard Tourism Development Authority
Business Retention/Expansion Workforce Development BRE/WD Leader Heart of Brevard Chamber of Commerce Economic Opportunity Network Transylvania Schools Blue Ridge Community College
Deliverable Review ď&#x192;źAn initial mission and vision for the new organization
Mission Orchestrate through engagement of investors, elected officials, existing organizations, and businesses, an attractive climate for creation, retention, and reinvestment of wealth within Transylvania County which is complementary to the long-term vision of Transylvania County and its residents. Orchestrate – all look to the conductor, play their position, know what to expect from their partners Engagement – active two-way participation Creation, retention, and reinvestment – that cycle we loved from the definition of Economic Development Long-term vision – required to set context and guidelines
Vision
To achieve a dynamic and robust business climate resulting in stable well-paying incomes and growing opportunities allowing residents to live fulfilling lives in a thriving place
Transylvania Economic Development Vision: What Do We Want To Be? Community – Transylvania County is noted for it’s vibrant, diverse community where there is something for everyone--retirees , young families, and everything in-between. Residents are attracted to our top-rated schools, low crime rate, recreational opportunities, and economic growth. Business Climate– Transylvania County businesses, from new startups to established businesses, from retailers to manufacturers, from agribusinesses to construction , grow and thrive. There is a “positive echo chamber” in the county that describes the environment as a great place to start and grow a business. Brevard, Rosman, and TC governments collaborate to create a “business friendly” environment while preserving our “sense of place”. Our community has a ready workforce trained at all levels of the economic ladder to support this economic growth. Investment – Our community attracts businesses that are relocating and retains local businesses that are expanding because we offer amenities achieved through creative private and public capital investments in business ready sites, telecommunications, utilities, and workforce development. Preservation – While TC residents enjoy increased economic opportunities, conserving the county’s natural beauty and resources is a priority. To the extent possible, each decision to expand or relocate a business to TC is made while preserving and enhancing the county’s “ecology of place” and enhancing its quaint, family-oriented, small-town atmosphere.
Deliverables
ď&#x192;źAnd a list of targeted industries
Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants) • Small medium manufacturing, e.g. • Outdoor recreation equipment • Build musical instruments
• Destination health club/spa • Camps • Sports Health & Wellness • Events/Conferences • Music recording industries • More movies
(…but to be honest, we liked the process of developing the list perhaps more than the list itself.)
Wrapping up • No changes have been made in the organization structure recommendation after careful consideration of feedback • The need for orchestration and collaboration with existing organizations has been reinforced • Not starting from scratch, allows the new organization to build on the strengths of existing organizations • Transylvania wide vision and comprehensive planning are essential to providing context for economic development efforts
Itâ&#x20AC;&#x2122;s been our pleasure to serve and we look forward to amazing progress. David, David, David, Ruth, Billy, Jackie, and Karen
QUESTIONS?
Next Steps Organizations independently considering this proposal. Task Force has assisted. Provide additional feedback to County Commissioners. Voluntary commitment to the proposed structure from each organization – new leadership needs engaged followers. Create oversight Board of Directors (Task Force work is done). Write contractual agreements. County budget appropriation for fiscal year 2014-2015. Convert Transylvania Partnership, Inc. into this new entity.
Successful Economic Development Requires something from everyone! What should you expect from your elected officials â&#x20AC;˘Increased investment in economic development â&#x20AC;˘Transylvania-wide longer term vision to provide context and guidelines
Successful Economic Development Requires something from everyone! What we need from you – • Constructive participation • Ever-ready workforce
Successful Economic Development Requires something from everyone! What you can expect from the Economic Development Organization • Orchestration of Transylvania Economic Development • A marketing effort that grabs the attention of new investors • Transylvania existing businesses are growing with fabulous stories • New businesses are investing here that are consistent with our community vision
Thanks for listening
Anticipated Questions – Next Steps 1. Cost and funding of new organization? 2. How is this different from today’s structure? From J. Goldsmith’s proposal? Why are so many of the existing economic development organizations remaining within the structure? 3. What large businesses will be targeted so we can get healthy wages? 4. Besides the new organization, what else is recommended? 5. Why will this be more successful? Is there a guarantee of new jobs? 6. When will we see new jobs? How will I know what’s available? 7. How can I best prepare to be a good candidate for new jobs? 8. What will be done to make things more friendly for current & incoming businesses? 9. Will this recommendation keep our younger family members in the area? 10. How does Transylvania compare with Henderson and Buncombe relative to wages and unemployment?
Recommended Budget & Funding? Increase county investment in Economic Development to a total of $530 – 640K in operating costs o o o o o
Salaries to attract professional staff Travel, e.g. trade shows Rent Marketing materials Contracts for professional services
Competitive market rent is paid to the Chamber, allowing/incenting the Chamber to provide greater service for Business Retention and Expansion effort Leveraging Tourism Development Authority’s marketing expertise and funding to embrace the value of a community marketing position and coordinator of a community calendar. No additional funds for workforce development – leverage excellent efforts of Transylvania County Schools & Blue Ridge Community College (more active partnership) We recommend increasing the capital reserve of the Transylvania Partnership to $500,000 in order to enhance the ability to facilitate significant investment in our community. The money should be privately managed.
How is this different? • From today’s effort
• More investment • New focused, functional responsibility – sales, marketing, and business retention & expansion • Co-Location in central, optimistic looking site • Better, more efficient coordination, & shared resources • Accountability to new measurable goals – e.g. $ invested/net job, increase per capita income • Formal orchestration of all economic development efforts by recognized economic development leader • Private employees accountable to agreed upon metrics
• From J. Goldsmith recommendation
• Lower cost through preservation of subset of existing organizations • More directly leveraging our valuable, effective volunteer base • More focus on business retention & expansion
why we’re keeping existing organizations
Large businesses with healthy wages? Public money should be spent on recruiting successful, compatible businesses. • Smaller businesses are more likely to come here (Jeanette Goldsmith says <50 most likely) • We recommend welcoming larger businesses which are compatible with the county’s vision • Target companies with wages comparable to Buncombe and Henderson counties
What else is recommended? Convert Transylvania Partnership Corporation into this new entity. Significant investment in comprehensive Transylvania strategic plan: Transylvania embark on a robust planning effort to better comprehend and anticipate change, while preserving the community character and values. This provides a contextual framework for the Economic Development Organization to operate, strategize, and ensures that future investment is compatible with the values of our community.
Formal collaboration across contributors Unified marketing look & feel, extending work of Tourism Development Authority
Why more successful? Job guarantee? Increased collaboration with everyone pulling in same direction will be a major factor for success. More investment in resources focused on specific measurable goals: e.g. $ invested/net job, increase per capita income Increased focus on business retention and expansion more likely to yield jobs sooner Time (2 – 5 years) and concerted effort (forever) required to gain momentum of new business development No guarantee of jobs, but we believe jobs are more likely with this approach.
New jobs, when? How will we know? We are not starting from scratch – and will build on current successes Increased focus on business retention and expansion more likely to yield jobs sooner Time (2 – 5 years) and concerted effort (forever) to gain momentum of new business development To keep informed: o Periodic formal review of progress to measures – net job increase, new investments, per capita wage o Establish relationship with supporting organizations: BRCC/JobLink o Expect organization to announce successes o Marketing team focuses externally and internally
How can I best prepare? Believe in yourself, do not underestimate your capabilities Be ever-ready mentally and physically to take on new job Grow by investing in yourself Seize opportunities Connect to JobLink, Blue Ridge Community College, Transylvania County Schools – job ready program Demonstrate ability to work hard with good work practices every chance you get
Making Transylvania more business friendly? “Concierge” position will guide new investors through our processes. Create attitude of facilitation: “how we can rather than why we can’t” New organization is expected to identify and help eliminate barriers to incoming investment All of us need to eliminate the negative feedback loop by working together to resolve issues. All of us need to create the positive feedback loop. Find reasons to share the good news. Increase credibility of Transylvania through effective local and regional partnerships – business retention and expansion Keep our county worthy of investment – ready workforce, clean, charming, inventory of buildings, land, and/or infrastructure
Keeping younger family members here? Jobs keep and attract people who share our values With success, additional jobs in this area lessen the need to commute to Buncombe, Henderson or beyond A diverse, healthy mix of small businesses leads to a more predictable future which is less sensitive the success of any one company Maintaining our wonderful quality of place is an important factor
Business Retention & Expansion Step 1 Research Systematic survey of local business needs/problems Business “listening visits” by EDO and local government leaders Data analysis: identify red flag factors causing local, high growth potential businesses to leave/fail/not grow.
Step 2 Prioritize/Plan Develop Projects/Plans to respond to problem areas Form project teams using contract services and volunteers Full participation of businesses in planning/prioritizing process
Step 3 Implement Example projects: Simplification of government regs Dept of Commerce assistance in overseas marketing Training in Lean Mfg Online Marketing Training Develop tailored workforce development
NC County Comparison Data from NC Dept of Commerce, Labor and Economic Analysis Div County
Average Wage/Hr
Employed
Unemployed
Unemployment Rate
Tier
Henderson
$17.91
48,891
2608
5.1%
3
Buncombe
$18.47
120,669
6426
5.1%
3
Haywood
$17.79
26,826
1638
5.8%
2
Jackson
$19.57
20,054
1251
5.9%
1
Macon
$16.61
14,633
1137
7.2%
2
Transylvania
$15.43
11,376
835
6.8%
2
NC
$20.07
4,315,366
305
6.9%
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47
Preliminary Conclusions • Transylvania’s unemployment rate ~1.7% higher than Buncombe and Henderson • Matching the rates would result in additional 212 people in Transylvania working (assuming no changes in workforce) • Wages are significantly lower • Do we have a higher percentage of lower paid occupations? • Matching occupation, how do wages compare?
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48
Rough* Conclusions from wage data *See Slide 47 • Transylvania has a higher percentage of Education, Training, and Library Occupations 16% TC compared to 5% HC and 6% BC Wages for this occupation ~15% lower in TC compared to HC & BC
• We have a comparable percentage of food service occupations 9% TC compared to 11% HC and 13% BC
• We have a lower percentage of production occupations 4% TC compared to 13% HC and 7% BC
• Average and Experienced Wages are 16 – 23% lower in TC compared with HC and BC 03/24/14
49
Transylvania â&#x20AC;&#x201C; establishments by industry sector
03/24/14
Industry Sector Establishments Employment Total Wages Taxable Wages Agriculture, Forestry, Fishing & Hunting Mining Utilities Construction 122 356 $2,824,260.00 $2,264,593.00 Manufacturing 33 385 $3,627,698.00 $2,276,095.00 Wholesale Trade 31 148 $1,567,477.00 $821,430.00 Retail Trade 121 1,356.00 $7,330,360.00 $5,766,278.00 Transportation and Warehousing 19 100 $1,160,048.00 $393,479.00 Information 10 141 $1,475,242.00 $988,362.00 Finance and Insurance 43 193 $2,083,118.00 $1,025,311.00 Real Estate and Rental and Leasing 51 117 $818,350.00 $735,264.00 Professional and Technical Services 90 224 $2,136,253.00 $1,132,721.00 Administrative and Waste Services 50 237 $1,741,690.00 $1,222,445.00 Educational Services 21 1,037.00 $8,375,658.00 $1,771,238.00 Health Care and Social Assistance 61 1,507.00 $13,559,049.00 $4,237,451.00 Arts, Entertainment, and Recreation 19 207 $1,177,194.00 $982,920.00 Accommodation and Food Services 86 1,257.00 $5,120,269.00 $4,779,212.00 Other Services, Ex. Public Admin 69 305 $1,798,405.00 $1,415,238.00 Public Administration 19 743 $6,204,201.00 $33,596.00 845 8313 60999272 29845633
50
Some wage data Henderson Buncombe
Transylvania Occupational Group Total, All Occupations
Estimated Employment
Estimated Entry Wage
9,230
Compared to Compared to Henderson Buncombe
Estimated Average Wage
Estimated Compared to Compared to Compared to Compared to Estimated Experienced Henderson Buncombe Henderson Buncombe Employment Wage
$8.67
-4%
-5%
$15.43
-16%
-20%
$18.81
-19%
-23%
30,960
Estimated Employment 118,710
Management Occupations
300
3%
$21.29
-4%
-11%
$35.89
-20%
-21%
$43.19
-24%
-24%
920
3%
4,040
3%
Business and Financial Operations Occupations
160
2%
$14.43
-9%
-19%
$22.21
-21%
-21%
$26.09
-24%
-22%
820
3%
3,360
3%
Computer and Mathematical Occupations
70
1%
$17.10
4%
1%
$24.54
-8%
-22%
$28.25
-11%
-28%
230
1%
1,520
1%
-18%
$26.64
-3%
$32.41
0%
340
1%
1,810
2%
-43%
$22.55
-102%
$27.10
-117%
70
0%
890
1%
-21%
$17.18
-12%
$20.32
-10%
400
2%
Architecture and Engineering Occupations Life, Physical, and Social Science Occupations Community and Social Services Occupations
0% 120 150
1% 2%
$15.11 $13.43 $10.90
-18% -42% -16%
-11% -17% -9%
-9% -11% -7%
1%
1,960
110
1%
0%
790
1,510
16%
$10.49
-21%
-12%
$17.35
-16%
-14%
$20.77
-14%
-15%
1,660
5%
6,600
6%
Arts, Design, Entertainment, Sports, and Media Occ
130
1%
$9.16
-13%
-1%
$15.21
-20%
-15%
$18.24
-22%
-18%
290
1%
1,340
1%
Healthcare Practitioners and Technical Occupations
410
4%
$18.33
6%
4%
$33.86
-10%
-3%
$41.62
-14%
-5%
1,980
6%
10,830
9%
Healthcare Support Occupations
550
6%
$10.18
7%
12%
$11.96
-5%
-4%
$12.84
-10%
-11%
1,410
5%
5,360
5%
Protective Service Occupations
240
3%
$8.81
-32%
-13%
$15.48
-17%
-8%
$18.81
-14%
-7%
490
2%
2,370
2%
0%
$9.37
-9%
$10.01
-12%
3,260
11%
15,160
13%
0%
$10.89
-7%
$12.30
-10%
1,330
4%
3,880
3%
-1%
$11.96
3%
$13.94
2%
2,750
2%
0%
$11.46
-35%
$13.09
12%
-4%
$14.03
-5%
$16.31
Legal Occupations Education, Training, and Library Occupations
Food Preparation and Serving Related Occupations Building & Grounds Cleaning & Maintenance Occup. Personal Care and Service Occupations Sales and Related Occupations Office and Administrative Support Occupations
0%
790 370 160 1,270 1,170
Farming, Fishing and Forestry Construction and Extraction Occupations
9% 4% 2% 14% 13%
$8.08 $8.08 $8.01 $8.20 $9.46
0% 0% 0% -2% -12%
1% 3% 14% -43% -11%
1% 5% 18% -56% -11%
4% -45%
3,130
10%
14,320
-6%
4,390
14%
18,810
16%
250
1%
60
0%
0% 330
Installation, Maintenance, and Repair Occupations
640
4%
$11.95
6%
1%
$16.63
3%
-1%
$18.96
2%
-2%
1,350
4%
3,590
3%
0%
$8.26
-42%
-43%
$11.57
-60%
-60%
$13.22
-65%
-65%
1,640
5%
3,990
3%
Production Occupations
340
4%
$8.67
-14%
-15%
$14.50
-15%
-3%
$17.42
-15%
0%
3,930
13%
8,020
7%
Transportation and Material Moving Occupations
460 8530
5% 92%
$8.15
-8%
-12%
$11.91
-24%
-20%
$13.79
-28%
-22%
2,310
7% 100%
7,270
6% 100%
03/24/14
51
Interesting to note for Transylvania County • Zero working in the following occupations: • • • •
Architecture and Engineering Legal Farming, Fishing, and Forestry Installation, Maintenance and Repair
• Only 81% of total employed included in wage data • Of those included in wage data, 8% not assigned to an occupation • Therefore these conclusions are not precise
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52
Unexplained Differences
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