The Basic Course - JJ Johnston

Transcript

1. Business Attraction J.J. Johnston, CEcD, FM, IOM Community and Economic Development Director
2. Learning Objectives Economic development/business attraction Understand aspects of target marketing Develop prospect targeting techniques Engage marketing planning process Create strategic and tactical priorities
3. According to the International Economic Development Council: Economic Development Defined “Economic development is the intentional practice of improving a community’s economic well-being and quality of life. It includes a broad range of activities to attract, create, and retain jobs, and to foster a resilient, pro-growth tax base and an inclusive economy. The practice of economic development comprises of a collaborative effort involving industry, government and myriad community stakeholders.”
4. Dysfunctional Communities are Possible Quality of Life Political Effectiveness Human Resources Community Vision?? Economy Physical Environment Public Finance
5. OMG… MY TOWN IS DYSFUNCTIONAL!!!
6. “IF THE ONLY TOOL WE HAVE IS A HAMMER, EVERY PROBLEM IS A NAIL” THE CLASSIC METAPHOR COMMUNITIES WE MARKET q ARE COMPLEX PRODUCTS q BEING SOLD TO SOPHISTICATED BUYERS q OUR VERY BEST TOOL / OUR BRAINS! q NAILING IT WITHOUT A HAMMER
7. Communities need Economic Stability Economic Base Tax Base Revenues Expenditures Service Delivery Population
8. Economic Development’s 5 Ps of Marketing & the Environment Regulatory Social Political PRODUCT PRICE PROMOTION PLACE PEOPLE Technology Economic Legal
9. KEY ATTRACTION GOALS To create a business attraction program that is research- based/market-oriented/community & client driven To attract acceptable prospect visitations To forge alliances with local business, education, government and workforce providers To train and mobilize an effective deal-closing team To realize every new job opportunity possible for your community To continuously improve, innovate and win
10. GENERAL APPROACH Gather business & industry trend intelligence Align with community assets Engage economic base analysis Provide customized research Present findings/recommendations to key partners in your community Create a winning proposal
11. CONSIDERATIONS PRIOR TO LAUNCHING BUSINESS ATTRACTION PROGRAM Understand your region and its economic engines Conduct local industry analysis Conduct sector analysis Conduct cluster analysis Align with community priorities
12. BUSINESS ATTRACTION FOCUS AREAS STRATEGIES/TACTICS GOALS/OBJECTIVES RESEARCH/TARGETING SALES/SYSTEMS/STAFFING EVALUATION/INNOVATION PROGRAM IMPLEMENTATION
13. STRATEGIC AND TACTICAL CONSIDERATIONS Linking business and community goals Developing regional marketing brand Increasing visibility with business decision makers and site selectors Expanding strategic relationships Generating qualified leads – converting into prospect visits and projects Creating an effective website for your EDO
14. DYNAMIC WEBSITES ARE AN ESSENTIAL TOOL Must have current and data rich content Easy to navigate Promotes region as a diverse product Benchmarked/competitive comparisons Builds strong business case for targeted industries Contains customized research, including GIS, building and sites, newsrooms, social media links, etc.
15. PLANNING INPUTS COMMUNITY ASSESSMENTS PRODUCT (ENTIRE COMMUNITY) WORKFORCE INFRASTRUCTURE ECONOMIC BASE COMMUNITY VISIONING COMPETITION TREND ANALYSIS
16. ANALYSIS BY CATEGORY BASIC INQUIRIES GENERATED LEADS/SUSPECTS CONVERSION TO PROSPECTS CLOSED DEALS
17. Role of Relationship Marketing
18. Prospect Profile Targeting
19. How Do We Target Quality Employers? Target Compatible Industries Best Locational Advantage Good Market Strength Most Jobs Best Jobs Manageable Environmental Impact Manageable Infrastructure Costs Positive Fiscal Impact
21. Targeted Technologies Fourth Industrial Revolution (4IR), AI, 3D, I of T, VR Bioinformatics 3PL and Redundant Supply Chains 5G Technology and expanded IT capabilities within commercial business corridors Precision Cancer Diagnostics Research and Development/Academic and Commercial Tele Health/Tele Medicine/Tele Veterinarian Services Translational Genomics
22. Targeted Industries Advanced business services Aerospace and defense Engineering Environmental Sciences Information technology/software Life and bio-sciences Research & Development Ubiquitous Mobile Super Computing
23. Key Information To Be Presented Taken from DCI “Winning Strategies” survey 2017 Demographics/Workforce Major Employer List Maps Targeted Industries Searchable database of buildings and sites Quality of Life information Staff Contact information
24. NEXT STEPS Confirm targets Align deal-making teams Create customized proposal & presentation Seek pro-active feedback Present modified proposal Seal the deal Ask for testimonials
25. ANALYZE & ALIGN SITE FACTORS IN DEVELOPING LOCAL ECONOMIES Research and Position Compatible Industries Strategically Present Customized Research and Link to Advantages of Your Community Targeted to Greatest Wealth/Job Creation Focused on Community and Prospect Benefit
27. Sampling of Site Selectors Atlas Insight CBRE Cushman & Wakefield Deloitte Ernst & Young (EY) Foote Consulting Grella Partnership Strategies Grubb and Ellis Hickey and Associates JLL KPMG McEnroe Newmark Knight Frank (NFK) Price Waterhouse Coopers (PWC) Site Selection Group Wadley Donovan Gutshaw Consulting (WDGC)
28. SITE SELECTORS FUNCTION § Analyze client requirements § Research regions/communities best locations § Align interest of companies to communities § Negotiate mutual considerations SITE SELECTION FACTORS § Labor/Demographics § Finance/Operating Costs/Risk Management § Operating Environment/Regulators § Facilities/Sites § Transportation/Logistics § Tax Structure/Incentives § Utility Infrastructure § Quality of life/Education, Safety/Business Climate
29. CLIENT CONSIDERATIONS § Proximity to customers/ suppliers § Proximity to labor/logistics § R.O.I. – Cost Containment Risk Management Sustained Profitability NPV – 20 years forward SITE SELECTION PHASES 1. Initial location decision criteria 2. Initial screening 3. Detailed location assessments 4. Field visits or “short list” locations/site 5. Negotiation/selection of final sites • Completion of CRE/Incentive Agreement • Site Acquisition • Public Announcement
30. Summary GENERATE THOUGHTFUL RESEARCH FOCUSED TO STRATEGY USE ANALYTICAL RESEARCH TO HELP SHAPE FUTURE ECONOMY BE A CHANGE AGENT FOR YOUR COMMUNITY