Published on April 21, 2008
Slide1: Greater Wabash COI Milestone #3 What “IF” A Connected Economy Can Be Realized? Wednesday, May 23, 2007 Edwards County Farm Bureau, Albion, Illinois WITH MEETING NOTES CONNECT SI ViTAL Economy Alliance Partners Stan Halle — [email protected] Jim Haguewood — [email protected] Frank Knott — [email protected] Slide2: Agenda – GW-COI Milestone #3 Meeting 8.30 — Welcome & Connect SI Organizational Items 8:40 — Review of Connect SI/GW-COI Schedule 8:45 — Review GW-COI Goals and Status of Milestone #2 Asset Mapping 9:00 — Economic Impact of Out-Migration 9:20 — Background and Examples of ViTAL Economy Principles 9:50 — Out of the Box Thinking! 10:00 — Breakout Sessions 10:45 — Breakout Session Reporting, Action Plan Identification and Assignments 11:15 — Next Steps and Meeting Dates Slide3: Connect SI 20-County Phase 1 Roadmap Phase 1 Outcomes GIS Asset Maps Broadband Strategy Economic Benchmarks Regional Economic Strategy Healthcare Strategy Regional Economic Framework Five-Year Measurable Goals Implementation & Funding Plan GIS Mapping Team Supports COI’s Connect SI Regional CED COI Strategy Healthcare Providers COI Strategy Network Providers COI Strategy VALUE-ADDED RESEARCH: Regional Economic Model, Healthcare Economic Model, Incubation, Research Park and Entrepreneurship Assessment, 20-county Readiness Assessment SI 2012 Goals Greater Wabash Region COI: Greater Wabash Region COI 1 - VE Vision Workshop, Goal Setting, 16 Nov 2006 Issues of Challenge and Opportunity Leadership Meetings Dec ‘06/ Jan 17 ‘07 1B - Goal Setting Workshop Jan 26 ‘07 Leadership Conference Calls Feb 6 & 21 ‘07 2 - Develop and Implement Regional 1 Mar 2007 Asset Mapping Process Leadership Meeting 14 Mar 2007 2B - Asset Mapping reinforcement 23 Mar 2007 3 - Connected Economy Opportunity Analysis 23 May 2007 Leverage Regions Unique Assets Leadership Meeting 11 May 2007 Readiness Assessment Interviews 23 Mar 2007 Church Leaders, Public Safety & Crime, and Export Activity & Manufacturing “3B” Asset Mapping Teams Only June 2007 4 - Economic Opportunity & Industry Sector July 2007 Prioritization & Diversification Issues 5 - Benchmark Current Economy, Understand Sept 2007 Future Economy, Establish Reg’l Economic Priorities Slide5: Process Filtering of Asset Mapping GW-COI Strategy & Goals: GW-COI Strategy & Goals Supported by Education & Training Cluster, ViTAL Economy Capital, and Connectivity Plan INDIGENOUS RESOURCES Innovation Incubation Entrepreneurship Integrated Finance Strategy Economic & Community Development Plan GW Recent Short-Term Wins: GW Recent Short-Term Wins Broadband: Greater Wabash area has been selected by the Network Providers-COI as the first of the four regions for a full design and roll out plan High Speed New Wave services are due to launch for a portion Mt. Carmel soon More and more aggregate demand coming forward Kentucky Datalink putting fiber in Olney & White County Speaking circuit & recruitment strategy underway Updates & other S/T wins? GW Asset Mapping Teams - Status[email protected]: GW Asset Mapping Teams - Status [email protected] GW Milestone #3: GW Milestone #3 Economic Impact of Out-Migration Health Services Spending Youth Brain Drain Greater Wabash Hospital Admissions Migrating to Indiana: Greater Wabash Hospital Admissions Migrating to Indiana Medical Services provide communities with professionals, spin offs, and employment opportunities Hospitals are paid per day of admission in many cases Of 33,900 admission days by GW patients in 2004 59% were in IN hospitals or Elsewhere (red & blue bars) — only 41% stays in Southern Illinois $32.9m of $55.5m admission-day revenues left Southern Illinois Self-perpetuating GW losing related jobs for local graduates, benefits and spin offs to IN Sources: CompData, Kaiser Foundation Note: Other includes Springfield, IL, KY, and MO Hospitals % Admission Days: Economic Impact from Commuting : Economic Impact from Commuting # commuters doubled to 20% over past 10 years (2000 vs. 1990) 25%-40% of disposable income is spent out-of-state —near where folks work Meals, Entertainment Transportation Health Shopping Estimated economic impact — that GW does not benefit from: $14.7m to $23.6m This is worth about 200 to 315 jobs Sources: Bureau of Labor Statistics Youth Brain Drain: Youth Brain Drain Greater Wabash % Population Decline 1990-2000 (census-to-census) TOTAL POPULATION -3.5% 20-29 YEAR OLDS -16.3% Source: BEA 20-29 year olds driving the GW population decline Recapturing departing young key to labor pool and economic development Without the next generation of workers, development strategies will fail Probability that high achievers are the most likely to depart The Prime KBE Workforce Youth are leaving at a much faster rate than overall population — Representing $19.1m in lost wages — Older Age Distribution Puts Region at Economic Disadvantage to State: Older Age Distribution Puts Region at Economic Disadvantage to State Big hole in GW age cohorts — future is in jeopardy Higher concentration over-40 in GW region, lower proportions of under-40 Median age higher in GW (40) than state (34.7) To grow economically, GW needs to retain younger workers – provide job opportunities Proportion of Population (%) Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 Age Distribution Comparison Out-migration is Eroding GW’s Future: Out-migration is Eroding GW’s Future Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR! GW Milestone #3: GW Milestone #3 Principles & Examples All Action Items Must Exhibit the ViTAL Economy 3 C’s: All Action Items Must Exhibit the ViTAL Economy 3 C’s Collaboration Builds Sufficient Critical Mass to Compete Globally, while Emerging Cluster Strategies Assure Regional Growth Connectivity Links Geographically Remote Resources to Increase Access, while Creating Opportunity, Building Diversification, Enabling Collaboration Changed Spending Increases Productivity and Revenues Opens New Markets, Expands Opportunity, Establishes Measurable Benchmarks and Goals Slide17: Move Up the Value Chain, Capture Greater Share of Value Chain Margins, Increase Economic Prosperity Economics 101 P=Producer & C=Customer Examples of Linking Resources Resulting in Added Value in the Marketplace and Creating Prosperity: Examples of Linking Resources Resulting in Added Value in the Marketplace and Creating Prosperity Tasmania Wool Market Issue: ability to compete in the global raw wool market In the information age there are no islands! Sequim, WA. Lavender Festival Issue: declining farmland due to higher value residential development Issue: bring Producer closer to Consumer Value added agriculture to sustain farmlands Dungeness Crab and Seafood Festival Issue: How to brand and grow a market for specialty Olympic Peninsula products Leveraging a unique resource to create a new market niche, Olympic Coastal Cuisine Peninsula College Advanced Degrees Issue: advanced degrees only available with a 2 1/2 hour drive If you can not create it yourself, partners with others to bring the product to market Dungeness Crab & Seafood Festival: Dungeness Crab & Seafood Festival What indigenous assets were applied? What industry sectors were connected? How did they get P closer to C? How were the 3 C’s applied? How did this action impact the goals Answer each question: Out of the Box Thinking!: Out of the Box Thinking! Milestone #3 Rules of Engagement: Milestone #3 Rules of Engagement Break up into Industries and Indigenous Resource groups The sky is the limit, no boundaries, nothing is unrealistic Groups can/should reach out to other groups Success is measured by the quantity of ideas and connections and how effective they are in addressing Issue of challenge or opportunity Applying the 3 C’s Economics 101 Addressing goals Leveraging indigenous resources for scalable opportunities When “aha’s” occur, empower an action team to realize the opportunity Breakout Questions: Breakout Questions What unique assets exist in the region that can be connected to increase value in the marketplace? What would be accomplished and what would be the value? What resources from somewhere else, not in your control, do you need to reach the goal? Quantify the savings or increased revenue by making the connection? Imagine all assets being connected anytime/anywhere: Breakout Session Reporting: Breakout Session Reporting Breakout Session Reporting: Breakout Session Reporting Breakout Session Reporting: Breakout Session Reporting Breakout Session Reporting: Breakout Session Reporting GW-COI Next steps, Assignments and Meeting Dates: GW-COI Next steps, Assignments and Meeting Dates Completion of Milestone #1 Document, (Terry Bruce, Phil Summers, WHO ELSE?) Completion of Milestone #3 Work Plan…Who is leading each team? Completion of additional goal setting items; Per capita income, entrepreneurship, poverty indicators, educational attainment, youth retention. (to be completed by ________) Industry teams to complete mapping and develop opportunities Indigenous Resources, Sarah Mann Energy, Tom Dersch Education, Matt Fowler (on-line healthcare course opportunity) Agriculture, Dean Klaus LWD, Brandi Stennett Tourism, Sarah Mann Healthcare, — LINK to Healthcare COI? KBE, Karen Weiss Creation of a Network Provider COI liaison team??? Proposed interim Asset Mapping Team meeting: 21 June Thurs 10-Noon — Carmi, UI-Extension Office Milestone #4 GW-COI meeting, date, time & location…. Scheduled Leadership meetings, TBE by co-chairs Milestone #4, Week of 16-20 July 2007 (evening meeting?) TBD by co-chairs and leadership Slide28: Greater Wabash COI Milestone #3 BACKUP SLIDES What “IF” A Connected Economy Can Be Realized? Wednesday, May 23, 2007 Edwards County Farm Bureau, Albion, Illinois CONNECT SI ViTAL Economy Alliance Partners Stan Halle — [email protected] Jim Haguewood — [email protected] Frank Knott — [email protected] GW Asset Mapping Teams[email protected]: GW Asset Mapping Teams [email protected] GW Asset Mapping Teams[email protected]: GW Asset Mapping Teams [email protected] Milestone #3 Template: Milestone #3 Template Issues of Challenge: Issues of Challenge Increase average wage Reverse population decline Change age demographic-youth brain drain 2,000+ recent dislocated workers Lack of quantity and commitment of leadership Weak region wide communication Limited access to public and private capital Slide33: Business Cases are Built Using The Value Linkage Process Greater Wabash COI Goals: Greater Wabash COI Goals Determination of specific measurable, wage and employment goals from change in regional wages vs. 2012 trend NEW JOBS: 1,381 WAGE: $43,500 $60.1m NEW JOBS AT AVERAGE WAGE: 920 WAGE: $36,517 $33.6m IMPROVEMENT OF EXISTING JOBS: 5,280 WAGE: $5,000 $26.4m CLIMATE OF ECONOMIC OPPORTUNITY: $36.4m Greater Wabash Additional Goals: Greater Wabash Additional Goals Slide36: Milestone #1 Work plan Establish a leadership team for this Connect SI sub-economic region Develop a champion and investor recruitment plan to sustain Connect SI Identify economic or community development reports for Connect SI team Clarify how Connect SI could help accelerate/benefit existing initiatives Define what will enable and sustain regional collaboration versus competition Slide37: Establish strategies that will address challenges to regional collaboration Complete, and prioritize issues of challenge and opportunity Prioritize definition of sub-regions measurable goals Select the issue that creates the greatest sense of urgency for your region Focus on collaborations that can result in short term wins linked to process Define what makes your investment of time, talent and treasure worthwhile… Milestone #1 Work plan, cont.