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September 2008
Five Keys to Effective Economic Development Marketing
Getting the attention of your targeted business prospects is a difficult task in the best of situations; battling 13,000 competitors makes it substantially more so. Unfortunately, that is the challenge faced today by economic development professionals. Because of this increasingly intense competition, it is imperative for economic developers to do all in their power to elevate above the competition in order to achieve meaningful results. AngelouEconomics has observed that five marketing fundamentals can make the difference between great success and mediocrity.
This article, written by AE's President of Economic Development, Steve Vierck, CEcD, identifies and describes five keys to effective economic development marketing. Click here to continue reading.
August 2008
The Attributes of Successful Business Attraction
Economic development, specifically business attraction, is a highly competitive discipline. Recent estimates place the number of economic development agencies in the U.S. at nearly 13,000 though the number of agencies operating worldwide is substantially higher. A great number of these agencies are committed to the same thing: recruiting economic base jobs to the communities they represent. The large number of competitive agencies and the practical challenges associated with the business attraction process itself combine to create a very challenging environment for success. However, economic development agencies that achieve continuing and demonstrable success in the business recruiting arena often share certain attributes.
In this article, written by AE's President of Site Selection, Jim Colson, "success attributes" are identified and described. Click here to continue reading.
July 2008
Innovation
and the Role of the Economic Development Practitioner
As the competitive environment becomes increasingly global, there has been a greater emphasis placed on the need for America to lead in innovation. The offshoring of cost-conscious industries to resource-rich low cost locales has intensified this push. But, if innovation is critical to America's future economic success and innovation occurs at the regional level, then what role (if any) should the economic development practitioner play?
In this "recycled report" (this very popular and relevant article was originally published in October of 2006) AE discusses the nature of innovation and economic development and the vital role that the E.D. practitioner can and must play.
June 2008
New Trends in Economic Development Planning
Over AngelouEconomics’ 13-year history, our staff has developed more than 130 strategic plans for communities across the United States. We have worked for communities large and small, rural and urban, struggling and succeeding. It has been our pleasure to develop innovative, implementable solutions for our clients that respond to trends in the dynamic economic development marketplace.
Over that 13-year period, the trends that have driven our industry have fluctuated – from site-specific industrial recruitment to technology-focused strategies to regionally based models of growth and innovation. These models still exist and are vital to successful economic development, but they are being augmented by new, emerging strategic planning trends. In this article by AE's Katie Bullard, four emerging trends are analyzed. Click here to continue reading.
May 2008
Attracting the Creative Class with Infrastructure
At this year’s annual American Planning Association conference, held in Las Vegas, the importance of infrastructure dominated the collective zeitgeist of conference attendees and speakers alike. In his opening keynote address, Oregon Congressman Earl Blumenauer warned against America’s diminished investment in basic infrastructure; today, national expenditures on infrastructure are barely half the level of spending experienced during the Reagan administration.
According to John Rees and Justin Sabrsula, Project Associates for AngelouEconomics, during their presentation to the American Planning Association, America must not only increase funding for traditional infrastructure such as highways, railroads, and ports. Rather, due to a changing demographic and economic landscape, there is demand for city leaders, economic developers, and urban planners to think more creatively and integratively about leveraging infrastructure investments to address complicated urban challenges.
Click here to continue reading.
April 2008
Site Selection for the Fuel Cell Industry: An Outlook for 2008
Fuel cell technologies, once the hottest and most-hyped sector of the renewable energy technology market, have finally begun to show promise as commercialized products... As fuel cells and associated technologies move from the lab bench to the production line, fuel cell manufacturers will increasingly focus on how to cheaply produce fuel cells while continue to innovate in their product lines. To best understand how to site fuel cell manufacturing plants and R&D facilities, industry executives should think strategically about expansions as an opportunity to strengthen their core business through attracting and retaining talent and locating close to end-users in the electric utility, consumer electronics, and transportation markets.
In our 2008 Outlook series, AE's Justin Sabrsula describes the decisions facing communities and site selectors in this innovative and growing industry. Click here to continue reading.
March 2008
According to the Austin Business Journal: At a press conference at City Hall attended by Mayor Will Wynn, City Council Members Betty Dunkerley and Mike Martinez, and Mike Shea, an executive planner for SXSW, Angelos Angelou, principal and chief economist at AngelouEconomics, emphasized the $110 million figure is a "very conservative" estimate, meaning the figure could be much more.
John Rees reports how and where the impact figures are important.
February 2008
Site Selection for the BioFuels Industry: An Outlook for 2008
With the price of a barrel of oil approaching $100, and gasoline over $3 per gallon, anyone driving a car to work or to go shopping can see why the biofuels industry, with its promises of cheaper, more environmentally friendly, homegrown fuels, is among the hottest industries in the United States.
In this article, AngelouEconomics' Justin Sabrsula determines current and future trends of the site selection process for the biofuels industry by examining not only the primary indicators but also the real estate perspective as well. This item is also featured in the January/February issue of Trade & Industry Development Magazine.
January 2008
Pharmaceutical Site Selection: 2008 Outlook
In recent years, communities looking to develop a local pharmaceutical presence have faced an increasingly challenging environment. The pharmaceutical industry is currently undergoing a significant period of realignment.
In this article, John Rees examines the factors of this realignment and described new decision factors for site selectors as a result. This item is also featured in the January/February issue of Trade & Industry Development Magazine.
October 2007
Putting Quantitative Data in Context
Advances in data collection and examination cannot be dismissed. Before a community enters the imagination of a site selector, the community’s website has been visited and mined for information. Often the initial data presentation determines whether or not a community is considered for further consideration. Aggressive communities find success in presenting a comprehensive quantitative portrait that can be easily digested by outside observers. Transparency is vital.
In the October article, AngelouEconomics reflects on last month's annual International Economic Development Council (IEDC) conference where discussions were held on how revolutionary technology will increase data analysis for today's economic development professional.
September 2007
Place Branding for the Economic Developer: AE
Weighs in on the 'Big Debate'
Place branding is a hot topic within the economic development community, and rightly so. In a world where marketers typically have ‘one shot’ to instantly get the attention of -- or introduce themselves to -- site selectors, consultants, tourists, potential workforce, and their own constituents, having and presenting a cohesive and enticing community identity has profound conscious and subconscious impact.
In the September article, AngelouEconomics describes the issue facing many economic development practitioners and isolates a criteria for 'winning brands' based on unique experience.
August 2007
College
Graduate Retention and Attraction: Regional Brain Drains and Brain Gains
With the continued movement of the U.S. toward a services-based economy, metropolitan regions around the country rely on college graduates to build and grow the economic bases of their communities. While some communities around the country have educational and research institutions that build their human capital resources, other regions are reliant on importing college graduates to fill high-end positions. Because of this need for college graduates across the country, regional economic developers often emphasize the importance of educating, attracting and retaining college-educated workers in their communities. To achieve these goals, cities and regions have focused primarily on quality of life strategies like arts festivals, downtown redevelopment, and increasing park space to improve their human capital base. But what truly drives the decision making process of college graduates when deciding whether to stay in a region or city or move?
In the August article, AngelouEconomics will use the largest 16 MSAs in the U.S. as an example to explore the reasons why regions should pay attention to college graduates, what criteria college graduates use to determine where to live and work, and what types of strategies regions can implement to effectively retain their college graduates.
July 2007
Economic
Development and Site Selection for Data Centers
In the wake of the bursting of the technology bubble in 2001, economic developers focused on high-tech industries attempted to diversify the technology economies of their communities. For many economic developers, diversification away from the traditional high-tech industries of software and information technology led to efforts focused on growing and attracting emerging industries such as biotechnology, nanotechnology, and renewable energy. While some cities have succeeded in attracting these high stakes, specialized industries, many smaller communities have largely failed to develop alternatives to traditional high-tech industries. As a result, economic developers are once again looking to information technology to help grow their high-tech employment base.
One emerging niche sector of the information technology industry is the nationwide investment in data centers. As the need for data storage and server farms continues to grow, data center operations have become the most recent target of economic development efforts. In the July article, AngelouEconomics explores the rise of data centers as an enabler of information technology, trends in the data center industry, why communities should be targeting data centers as part of their economic development strategies, and what site selection characteristics a community needs to attract data centers to their community.
This article is currently published in the July/August issue of Trade & Industry Development Magazine.
July 2007
Site
Selection and the IT Industry
In the June newsletter article, AngelouEconomics provided a snapshot of the information technology sector and the factors that contribute to a strong information technology presence in a community. In the July newsletter article, AngelouEconomics presents an examination of other important components of a successful local technology industry, including the availability of venture capital funding, a history of commercially applicable patents, and the quality of life enjoyed by area residents.
This article is currently published in the July/August issue of Trade & Industry Development Magazine.
June 2007
The
Information Technology Sector is Back
Having experienced severe declines in the wake of the dotcom collapse, the information technology industry has witnessed a turnaround in recent years. After posting two consecutive declines in employment from 2001 through 2003, the industry witnessed sustained growth beginning in 2004. In 2005 alone, information technology employment grew 3.1%. Workers in the information technology sector also continue to enjoy substantially higher annual wages than the U.S. average. In 2005, the annual wage of a technology worker was $81,447, more than double the U.S. average annual wage of $40,677.
While emerging industries such as biotechnology, nanotechnology, and sustainable energy have increasingly captured the imagination of economic developers throughout the country, many communities are again looking towards the information technology sector as a potential source of economic growth. With this interest in mind, AngelouEconomics has examined the 100 largest metropolitan statistical areas in the country and identified the drivers of a successful local information technology sector. The June article takes a look at the return of the information technology sector. And look for a complete examination of the components of a successful local technology industry in July's issue of Trade & Industry Development magazine.
May 2007
Economic
Development Opportunities for U.S. Mega-Regions
For years, economic development organizations, consultants, and investors have advocated a "regional approach" to economic development as the ideal approach to compete effectively in a globalizing economy. In most cases, that "regional approach" simply meant cooperation and collaboration between central cities and their suburban counterparts. More recently, however, the definition of regionalism has been expanded into a discussion of "mega-regions" or "megapolitans." The Regional Plan Association, through the America2050 initiative, has defined mega-regions as "large networks of metropolitan regions that are linked by environmental systems and geography, infrastructure systems, economic linkages, settlement patterns, and shared culture and history."
U.S. mega-regions will account for 50% of the nation's population growth and 66% of its economic growth over the next 45 years. Given those statistics, it's clear that considerable investment will pour into these regions. The May article describes the major U.S. mega-regions, evaluates their relative position of strength for sustaining economic growth, and outlines emerging areas of collaborative economic development opportunities within the mega-region framework.
April 2007
The
Promise of Academic Tech Transfer in Economic Development,
Part II
This follow-up to the November article explores practical ways in which the economic developer can help to support economic growth through local tech transfer initiatives. Tech transfer is a powerful tool for promoting innovation-based economic development in today's global economy. However, a community's portfolio of technologies must be harnessed and directed appropriately or risk being lost to other regions. Economic developers can play a crucial role in connecting local technologies to local investors, companies, and entrepreneurs. In Part II of the series on "The Promise of Academic Transfer in Economic Development," AE provides pragmatic strategies and recommendations for leveraging local tech transfer into economic development opportunities.
March 2007
Alternative
Energy Industry Update
The alternative energy industry is a long-term growth industry with low barriers to entering the market. Communities around the nation have a variety of entry points into the industry and can capitalize on strengths in manufacturing, research, or operations and construction to create jobs in the industry. As additional alternative energy technologies become commercially viable in the near future, U.S. towns and cities can expect a widely dispersed industry creating high-paying jobs in biofuels, wind energy, solar photovoltaics, and cleaner-coal electricity production. In the March 2007 article, AngelouEconomics explores the underlying technologies in the alternative energy industry along with niches for economic development.
February 2007
In January, AngelouEconomics provided a brief introduction to the biotechnology industry and the economic development opportunities available to communities. This month, we provide you with the two part series written by AngelouEconomics, titled "Empires of the Mind - Education, Research, and Commercialization: the Building Blocks of Biotechnology" as featured in the January/February issue of Trade & Industry Development Magazine.
Driven by advances in technology and economic demand, focus on the world of bio has never been greater. Emphasis has been placed in several "fields" of bio: BioMed (enhancements to medicine); BioTech (new technologies from the life sciences); BioEnergy (alternative fuels solutions); & BioAg (improved crop development), to name a few. Each one, on their own, offers possibilities for augmented lifestyles. Combined, these fields present opportunities for a profoundly improved human existence.
It is no wonder then, that regions worldwide have created programs to enhance their role in the emerging bio experience. In the February 2007 article, we explore those initiatives being offered, as well as the site selection parameters facing executives in these fields.
January 2007
Empires
of the Mind: The Emergence of the Biotechnology Industry
Over the last three decades, the biotechnology industry has emerged as a global industry defined by four major subsectors: 1) Research, testing, and medical laboratories; 2) Medical devices and equipment; 3) Drugs and pharmaceuticals; and 4) Agricultural feedstock and chemicals. Today more than 1.2 million people work in one of these biotechnology subsectors, with 60% representing the research, testing, and medical laboratories, and drugs and pharmaceuticals sectors. Biotechnology employees enjoy some of the highest wages in the country with an average salary toping $66,000, 65% higher then the national average. Furthermore, according to projections by the Milken Institute, biotechnology employment will grow by 1.6% annually through 2014, with many subsectors projected to experience even faster rates of growth.
Few industries can rival biotechnology in community economic benefits. Unsurprisingly, biotechnology is one of the most aggressively recruited industries in the country. According to one survey, biotechnology was cited by more than 80% of local and state economic development agencies as a priority target industry. Fueled by visions of an educated, growing, and well-paid labor force, cities and states have eagerly announced economic initiatives aimed at attracting biotechnology firms to local sites.
The January 2007 article discusses the emergence of the biotechnology industry and the future economic development opportunities available to communities that are able to successfully recruit this highly sought after industry.
2006 Newsletter Articles
November 2006
The
Promise of Academic Tech Transfer in Economic Development,
Part I
Academic tech transfer - the formal transfer of university research, inventions, and intellectual property to private industry for purposes of commercialization - has seen rapid growth in recent years. Universities across the country are increasing their tech transfer activities, leading to increases in the number of licenses executed, the number of startups generated, and a host of other variables. This impressive growth is not only bringing valuable new products to the marketplace that enhance quality of life, it is also inducing large amounts of private investment, helping industries to expand, and fostering entrepreneurial activity - often in the local community. Academic tech transfer is thus emerging as a powerful new economic development tool, one in which economic development professionals must link their efforts to if they are to reap its rewards for their communities. The November article explores the growth and maturation of academic tech transfer and identifies obstacles to its continued growth and expansion.
October 2006
Innovation
and the Role of the Economic Development Practitioner
As the competitive environment becomes increasingly global, there has been a greater emphasis placed on the need for America to lead in innovation. The offshoring of cost-conscious industries to resource-rich low cost locales has intensified this push. But, if innovation is critical to America's future economic success and innovation occurs at the regional level, then what role (if any) should the economic development practitioner play? The October article discusses the nature of innovation and economic development and the vital role that the E.D. practitioner can and must play.
September 2006
The
Changing Role of Community Colleges in Economic Development
Often, community colleges are taken for granted as resources for economic development and workforce development. Yet community colleges are one of the most effective tools in a community's economic development arsenal. They provide effective workforce training programs, often at a lower cost than either private workforce development providers and at one-half the cost of a four-year college degree. As the global economy becomes ever more competitive, community colleges are also evolving into "entrepreneurial colleges" that are engines of economic and community. The September 2006 article looks at the ever changing role of community colleges in economic development.
August 2006
National
Housing Market Update
American's appetite for home buying is finally showing signs of being satisfied. A slowdown in purchases combined with modest price increases and a steadily growing inventory indicates that the red hot housing market of the past few years is cooling. The cooling housing market that is being experienced across the nation could be explained by an economic correction, bringing housing costs more in line with income levels.
The August 2006 article looks at the upcoming changes in the national housing market and trends that will impact home sales into the future. Before you buy or sell a home, click here to read more about the national housing market.
July 2006
Industry
Update: Aviation and Aerospace Manufacturing
Aviation and aerospace is a broad industry that consists of civilian and military aircraft, space vehicles, and missiles, as well as aircraft suppliers who provide parts and machinery for aircraft assembly and maintenance. Communities around the world are seeking to attract and recruit companies within this cluster due to the high-wage jobs that are created by companies in this industry that can often have an immediate positive impact on the local economy. The addition of several hundred high-wage jobs can cause a positive external affect on the community including a boost in local housing construction, an increase in educational attainment within the local workforce, an increase in ethnic diversity for the community, a net increase in jobs within supporting industry clusters, and a higher overall quality of life. Large concentrations of the cluster are currently found in Seattle, Wichita, Dallas/Fort Worth, Los Angeles, and throughout the State of Arizona.
The industry has suffered in recent years due to falling orders for new aircraft, but growth has returned in 2005 and is expected to continue into 2006. The July 2006 article provides a snapshot of the aviation and aerospace industry and details historical growth trends and future growth trends. Click here to read more about this growing industry.
June 2006
The
Productivity Trap in Technology: How
Increases in Output and Productivity Don't Translate into Jobs
The technology industry is experiencing renewed growth, and the outlook for many new and emerging industries is now brighter than ever. The industry emerged from the economic downturn stronger than ever, but manufacturers have had to introduce leaner and more efficient production technologies and processes in order to stay competitive. Examining trends in production and employment for technology industries underscores this competitive response.
The June 2006 article provides a preview of the new trends in the technology industry and the resulting changes to production and employment. Stay tuned to future newsletter articles for more information on technology industry trends and site selection requirements.
May 2006
Survey
Results: Economic Development Marketing Innovation and Best Practices
Survey
In today's competitive landscape, economic development organizations are faced with the increasing challenge of marketing their community to a select group for a finite number of projects. Economic development can be described as having two functions: product improvement and product promotion. Product or community improvement initiatives are most effective when the community works together to strengthen its assets. It is the role of the economic development organizations to communicate these assets to the outside world and improve the perception (or in some cases change a misperception) of the community. What are the most effective activities that can help a community to accomplish this?
AngelouEconomics created a national survey to send to economic development organizations across the country - from small, rural communities to major metropolitan areas - to find out the best marketing practices. We received over 200 responses from economic development organizations representing population sizes of less than 100,000 to over 1 million.
Click here to read a summary of the survey results and look for future newsletter articles providing marketing best practice case studies.
April 2006
The
Role of Universities in Economic Development
The traditional roles of the American university are often described through the image of a "three-legged stool." These three roles are defined as instruction, research, and service. Today, however, many university officials recognize that their institutions can and should play a fourth role: expanding the economic competitiveness of the surrounding community. Unfortunately, universities are often not utilized to their full economic development capacity because critical linkages between the institutions and economic development organizations are not formalized. This article explores higher education's role in economic development and offers recommendations designed to strengthen this increasingly important partnership.
Click here to learn more about the Role of Universities in Economic Development.
March 2006
Gulf
Coast Recovery is Ready to Go - Hurricane Katrina GO Zone Incentives
Third editorial in a series
The Gulf Opportunity Zone Act of 2005, signed into law by President Bush on December 21, 2005, contains significant economic incentives to rebuild the Gulf Coast, as well as to attract new investments to the affected areas. Modeled after the New York Liberty Zone incentives created for parts of lower Manhattan after the 9-11 disaster, these incentives are intended to stimulate rapid, private investment within the Gulf Opportunity Zone (GO Zone). These economic incentives are so significant that any business considering an investment in new, replacement or expanded operations, buildings or equipment within the GO Zone should consider how to employ these incentives to the fullest extent possible.
Click here to learn more about the GO Zone incentives. You can also click here to read all of the editorials in the series on Rebuilding the Gulf Coast Economy.
February 2006
Foreign
Direct Investment Trends
Foreign direct investment (FDI) is the underlying driver of many key U.S. economic issues including offshoring, the trade deficit, job creation, the current account deficit, and even interest rates. FDI is a domestic firm investing in a foreign market and vice versa. A GE call center in India and Toyota truck plant in San Antonio are both FDI. Firms seeking to invest in foreign markets have two options: build from scratch, often called a greenfield investment, or invest in an existing operation through a merger or acquisition.
International recruitment has become a top strategy for many economic developers in the U.S. States that aggressively recruit foreign companies see sizeable dividends in new investment and jobs. Today, over 5 million U.S. workers are employed by foreign-owned companies, slightly less than the entire U.S. technology sector. Offshoring jobs into the U.S. is still a growing trend and should be a part of any economic development strategy. Click here to read more and find out who's winning the global recruitment wars.
February 2006
After
the Storm - Recreating the Gulf Coast
Second editorial in a series
After the devastation of Hurricanes Katrina and Rita, economic development professionals were faced with the nightmarish task of survival, rescue, and rebuilding, all with a potentially shattered economy. With strategic thinking and thoughtful planning, the Gulf Coast region can recreate itself as a global economic base in the years ahead. Click here to read the second editorial in this series, or click here to read all of the editorials on Rebuilding the Gulf Coast Economy.
January 2006
High
Stakes Economic Development...Winning Hand or Bluff?
A decade ago few states were focused on attracting a major automotive manufacturing plant, in part because there were not that many automotive projects in the market, and of those that were, the stakes were so high few knew where to begin. That all changed with South Carolina's BMW announcement, followed by Mercedes, Honda, and others. What made these states particularly successful in attracting this elusive giant among economic development projects? The common element most likely had nothing at all to do with luck or a good bluff, but had everything to do with a winning combination of preparation, strategy, teamwork, speed, and focus.
©2008 AngelouEconomics Inc. Global Economic Development, Site Selection and Economic Analysis.
