©2007 vital economy, inc. 1 southern illinois: garden of the gods readiness assessment chapter 2:...

©2007 ViTAL Economy, Inc.— 1 —

Southern Illinois: Garden of the Gods

Readiness Assessment

Chapter 2: Indigenous Resources & Industry Asset Mapping

December 28, 2007; revised Feb 15, 2008

CONNECT SI

ViTAL Economy AllianceFrank Knott, Lead & Master Guru; Stan Halle, Senior Editor;

Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers

[email protected]; http://www.vitaleconomy.com


2.01 Why We Map

2.02 Indigenous Resources &

Industry Maps

2.03 SI’s Unique &

Leveragable Resources

Table of Contents

EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & Importance the Big Picture & Importance

of Change in Southern Illinoisof Change in Southern Illinois

READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)

1. State, National & Global Trends1. State, National & Global Trends

2. Indigenous Resources & Industry Asset Mapping

3. Enabling Environment Necessities

4. Climate of Innovation, Incubation & Entrepreneurship

5. Southern Illinois Competitiveness

6. Regional Perspectives

7. Framework for Success

APPENDICES


Chapter 2:Indigenous Resources & Industry Asset Mapping

2.01 Why We Map …………………………………. 4

2.02 Indigenous Resources & Industry Maps …… 9

2.03 SI’s Unique & Leveragable Resources ……. 13

Southern Illinois — "Garden of the Gods"

SI has significant & unique assets that position it to take full advantage of the trends discussed in Chapter 1 — this allows SI’s economy to grow from within rather than

spending precious resources on industry attraction … “sow your own to grow your own”



2.01 Why We Map


Asset Mapping is an essential step in the ViTAL Economy Process — providing key insights for a region to learn how to recognize and value what makes it unique.


Asset Mapping — Why it is Essential

Know where you are

See where you have been

Know where you are going

Find the best route

Find an alternate route

Determine what to avoid

Make connections

Determine who to visit with

• Learn what makes us unique & that SI is something special

• Discover what previously competing communities within SI have in common

• Bring to light the Region’s collaborative and marketable opportunities

• Discover our ability to compete without trying to become something we are not

• Note: We cannot effectively compete without collaborating & connecting assets across SI

“Do what you can, with what you have, where you are”- Theodore Roosevelt

“Do what you can, with what you have, where you are”- Theodore Roosevelt

2.01 Why We Map


Connect SI – Overall Logic Flow

Asset Maps help us understand what makes SI

unique!

Opportunity Realized

Measures of Success

Short/Long Term Wins

Connect the Dots

Barriers

Barrier Strategies

Local Opportunity

Local Innovation

Global Innovation

Industry/State

Best Practices

Innovation

Who We Are

Knowledge

The foundation of sustainable economic

growth is building on what makes a region

unique, NOT copying what others are doing

Global Opportunity

2.01 Why We Map


Weaving Assets into Opportunities

“Most large markets evolve from niche markets”- Regis McKenna, Silicon Valley guru

“Most large markets evolve from niche markets”- Regis McKenna, Silicon Valley guru

In the ViTAL Economy approach, Indigenous Resources are “interwoven” with existing and emerging opportunities to form unique bonds

Enhances “connectivity” amongst existing businesses to strengthen the competitive position of SI — in a global economy instead of competing against each other

Enables SI to leverage unique/remote assets that offer value-added rather than low-margin commodity products & services

By weaving together SI COIs’ indigenous and sector resources, critical mass can be achieved and global opportunities captured

Prior to linking these assets together, everyone had a piece of the value-chain, but few had the whole chain

Once SI understands its collective strengths, it can then connect those strengths to global niche market opportunities, which have heretofore not been captured by SI

2.01 Why We Map


Asset Maps Focus Opportunity Analysis

• Enables SI to define how indigenous resources make it unique and special

• Identifies resources at economic sub-regions to be leveraged across counties

• Helps to filter, prioritize and focus competing economic strategies

• Defines what industry clusters can be home grown based on local assets

• Identifies industry value chain assets to be connected across SI Region

• Natural• Human

• Knowledge• Cultural

• Geographic• Excellence

• Infrastructure• Government

• Natural• Human

• Knowledge• Cultural

• Geographic• Excellence

• Infrastructure• Government

Map Indigenous Assets

+ =

• Agriculture• Healthcare

• Tourism• Energy

• Manufacturing• Education• KBE Firms• Logistics

• Agriculture• Healthcare

• Tourism• Energy

• Manufacturing• Education• KBE Firms• Logistics

Map Industry Assets

Priority industry clusters with the best ability to

deliver economic growth goals

See: RA Chapter 2

2.01 Why We Map



2.02 Indigenous Resources & Industry Maps


The four Regional Communities of Interest (COIs) — Greater Egypt, Greater Wabash, Southeastern, and Southern Five produced extensive Asset Maps of both their Indigenous Resources and by major Industry (both existing & emerging); these are summarized here

©2007 ViTAL Economy, Inc.— 10 —— 10 —— 10 —

Asset Mapping Was Done by Each COI

Connect SI includes 4

Sub-regions:

Southern FiveUnion, Johnson,

Alexander, Pulaski, Massac

SoutheasternPope, Hardin, Saline,

Hamilton, Gallatin

Greater WabashWhite, Wayne,

Edwards, Wabash

Greater EgyptRandolph, Perry,

Jackson, Jefferson, Franklin, Williamson

Connect SI includes 4

Sub-regions:

Southern FiveUnion, Johnson,

Alexander, Pulaski, Massac

SoutheasternPope, Hardin, Saline,

Hamilton, Gallatin

Greater WabashWhite, Wayne,

Edwards, Wabash

Greater EgyptRandolph, Perry,

Jackson, Jefferson, Franklin, Williamson

GEGE

SESE

GWGW

S5S5



Asset Mapping: Indigenous Resources

Source: COI Asset Mapping Teams


S5 SE GW GE

X X Geographic Rivers system Ohio River

X X Geographic Rivers system Mississippi River

X Geographic Rivers system Wabash River

X Geographic Rivers system Joining of the two great rivers (Ohio/ Mississippi)

X Geographic Rivers system Adjacent River SystemX Geographic Rivers system Kaskaskia RiverX Geographic Rivers system Little Grassy River

X Geographic Lakes Horseshoe, Mermet, EgyptX Geographic Lakes Dutchman - top fishing

X Geographic Lakes Lake of EgyptX Geographic Lakes Rend Lake (2nd largest manmade in Illinois; Marina, Conference Center) X Geographic Lakes Kinkaid LakeX Geographic Lakes Devil's Kitchen (trout)X Geographic Lakes Mirror LakeX Geographic Lakes Lake Murphysboro

RegionCategory Specific Resource/Feature/AssetGeneral Resource/ Feature/ Asset

S5 SE GW GE

X X Geographic Rivers system Ohio River

X X Geographic Rivers system Mississippi River

X Geographic Rivers system Wabash River

X Geographic Rivers system Joining of the two great rivers (Ohio/ Mississippi)

X Geographic Rivers system Adjacent River SystemX Geographic Rivers system Kaskaskia RiverX Geographic Rivers system Little Grassy River

X Geographic Lakes Horseshoe, Mermet, EgyptX Geographic Lakes Dutchman - top fishing

X Geographic Lakes Lake of EgyptX Geographic Lakes Rend Lake (2nd largest manmade in Illinois; Marina, Conference Center) X Geographic Lakes Kinkaid LakeX Geographic Lakes Devil's Kitchen (trout)X Geographic Lakes Mirror LakeX Geographic Lakes Lake Murphysboro

RegionCategory Specific Resource/Feature/AssetGeneral Resource/ Feature/ Asset

• Double-click on the table below to open the Excel spreadsheets that detail SI Indigenous Resources from the Milestone 2 Asset Mapping Process — these maps will provide an important foundation for all Industry Cluster efforts (Phase 2)

• Use the scroll bars to view additional rows & columns• Additional opportunities and resources may be added to the map as regional stakeholders use it as a dynamic tool to

map the assets of your evolving economy

Indigenous Resources: Natural; Human; Knowledge; Cultural; Geographic; Excellence; Infrastructure; Government


Asset Mapping: By Industry

Industries: Agriculture; KBE; Energy; Education; Tourism; Logistics, Transportation, and Distribution; Forest Products; Manufacturing

Source: COI Asset Mapping Teams


• Double-click on the table below to open the Excel Spreadsheets that inventory SI resources by industry during the Milestone 2 Asset Mapping Process — these maps will provide an important foundation for specific Industry Cluster efforts (Phase 2); use the scroll bars to view additional rows & columns

• Additional opportunities and resources may be added to these maps as regional stakeholders use it as a dynamic tool to map the assets of your evolving economy

S5 SE GW GESector Component or

Participant Current Status Primary Threats

X Product

X Corn

improving; export & domestic demand strengthening corn prices / additional slowing of corn as feed due to high prices

Cost of Inputs / soil productivity / Weather & Disease / crop insurance only insures against total destruction not income / Strength of Export Demand important as corn struggles to keep up w/ domestic demand for ethanol production

X Soybeans

local producers go where the $ goes - shifting to corn given current corn pricing / export & domestic demand uncertain

corn pricing affects local production / soil productivity / Weather & Disease / crop insurance only insures against total destruction not income / Strength of Export Demand and production by other countries

X MiloDeclining - Stable at Best / produce as a last resort

Market Issues - not every market takes milo / corn pricing affects local production

X CattleSmall Margins especially with $4 corn - feeding as cheaply as possible

Land Prices especially with $4 corn / Higher Feed Prices / need to adjust production downward to bring prices up / small profit margins hurting small producers / competition with corporate markets/growers / lack of packaging plants market structure / Govt

X HorsesImproving - for recreational use / poor selling market

Government regulations / Shawnee National Forest trail decisions / horse slaughter bill / slaughter plants closing / consideration as a companion animal

X Peaches

Steady - no decline in acreage used for production / per Rendleman Orchards - improving

Labor is the biggest threat Illinois' Adverse Effect Wage Rate is $9.21 (KY is $8.24, AR, LA & MS are at $7.58) / Weather & Disease / per Rendleman Orchards primary threats are labor, price, weather

X Apples Decline in acreage used for production

External Competition is an issue / Labor (Adverse Effect Wage Rate) / per Rendleman Orchards primary threats are labor, price, weather & global competition

X TomatoesDeclining to stable / decline among smaller operations, but stable in large producers

Labor intensive / Labor is the biggest threat (Adverse Effect Wage Rate)

Region

S5 SE GW GESector Component or

Participant Current Status Primary Threats

X Product

X Corn

improving; export & domestic demand strengthening corn prices / additional slowing of corn as feed due to high prices

Cost of Inputs / soil productivity / Weather & Disease / crop insurance only insures against total destruction not income / Strength of Export Demand important as corn struggles to keep up w/ domestic demand for ethanol production

X Soybeans

local producers go where the $ goes - shifting to corn given current corn pricing / export & domestic demand uncertain

corn pricing affects local production / soil productivity / Weather & Disease / crop insurance only insures against total destruction not income / Strength of Export Demand and production by other countries

X MiloDeclining - Stable at Best / produce as a last resort

Market Issues - not every market takes milo / corn pricing affects local production

X CattleSmall Margins especially with $4 corn - feeding as cheaply as possible

Land Prices especially with $4 corn / Higher Feed Prices / need to adjust production downward to bring prices up / small profit margins hurting small producers / competition with corporate markets/growers / lack of packaging plants market structure / Govt

X HorsesImproving - for recreational use / poor selling market

Government regulations / Shawnee National Forest trail decisions / horse slaughter bill / slaughter plants closing / consideration as a companion animal

X Peaches

Steady - no decline in acreage used for production / per Rendleman Orchards - improving

Labor is the biggest threat Illinois' Adverse Effect Wage Rate is $9.21 (KY is $8.24, AR, LA & MS are at $7.58) / Weather & Disease / per Rendleman Orchards primary threats are labor, price, weather

X Apples Decline in acreage used for production

External Competition is an issue / Labor (Adverse Effect Wage Rate) / per Rendleman Orchards primary threats are labor, price, weather & global competition

X TomatoesDeclining to stable / decline among smaller operations, but stable in large producers

Labor intensive / Labor is the biggest threat (Adverse Effect Wage Rate)

Region



2.03 SI’s Unique & Leveragable Resources


Chapter 2’s Summary Section takes some of the most promising Opportunities identified in Chapter 1 and couples these with the most unique and leveragable SI Assets; however, there are barriers that must be overcome (aka “Challenges”) — these will be discussed

more thoroughly in Chapter’s 3, 4, 5 and 6


What COI’s Learned from Asset Maps

SIU’s 60+ year history with students from over 100 cultures positions SI to access expanding global markets which are seeking access to U.S. markets

SIU’s research centers of excellence in energy, environment, materials and neuroscience perfectly align with global priorities for market growth

SI has a more significant base of workforce development and research university assets to respond to the 10 million worker shortage than any rural economy in the U.S.

There are more innovation, incubation and entrepreneur assets in SI than anyone imagined; this positions SI to build an Innovation Ecosystem fueling KBE growth

Intermodal logistics assets and heartland location align with the redevelopment and expansion of inland waterway logistics connecting to Midwest logistic gateways

Regional tourism assets are aligned with authentic and active lifestyle tourism trends involving 50-80 million annual tourists in the U.S.

SI has the right mix of assets for attracting the financially independent active retirement demographic, which is fueling the growth of senior living opportunities

SI has a significant base of diversified alternative and traditional energy assets, which if collaboratively organized, provide a basis for a diversified energy sector

Asset Mapping proves SI already has what it needs to drive its own economic destinyAsset Mapping proves SI already has what it needs to drive its own economic destiny



Opportunities Links to Regional Assets Challenges

Globalization: The World is Flat • World economic growth rate = 4X’s the

rate of SI

• SI can leverage its central location and inter-model transportation assets to become a logistics service center

• Proximity: 8 hour drive time to over 2/3 U.S. market

• I-57, Rt12, I-24, I-13, CN Rail, Ohio and Mississippi waterways

• SIDEZ, USDA and others conducting logistics and transportation research and opportunity analysis

• Large existing logistics business base in all four sub-regions

• Airports: Williamson County Regional, Mt. Vernon, Sparta, Jackson County, Pinckneyville

• SIUE International Trade Center

• Weak regional understanding of how to tap the global market

• Historically, logistics and transportation centers have been on other interstates

• Highly fragmented and competitive logistics and transportation industry

eCommerce & Connectivity

• eCommerce is growing 6x’s faster than the U.S. economy

Apply connectivity applications to improve community efficiencies

Develop connectivity strategies to support other economic and market opportunities

• Hundreds of SI unique niche products and services; artisans, wineries, graphic design and marketing

• Network Provider COI with over 30 providers working together towards clear goals

• SIU and SI’s Community College System

• Low broadband coverage and penetration rates in the region

• Limited understanding of eCommerce systems and strategies

• Limited knowledge of connectivity applications to bring efficiencies

Senior Living • 77 million baby boomers present an

affluent market

• 75% of the countries wealth is residing with active adults desiring many of the attributes of SI

• Specialty healthcare products & services

• Nutraceuticals

• Linking education assets for life long learning opportunities

• Rural living; 120% increase 1970-1996

• SIU School of Health Sciences

• Heartland, SIH, Good Samaritan and other healthcare institutions

• Very knowledgeable and dedicated healthcare administrators

• Center for Rural Health

• Mild climate

• Low cost of living

• Boomers going rural

• SIU and SI’s Community College System

• Access to healthcare is perceived as limited and low in quality

• Small amount of existing knowledge and facilities in the region supporting senior living alternatives

• SI understanding of senior living opportunity is limited to lower income seniors & assisted living lifestyles

• Providing amenities sought by retirees


Opportunities, Link to Regional Assets & Challenges(1 of 4)




Global Workforce Opportunities• Transform SI into the “corporate casting

agent for the 21st century”

• Leverage over 60 years of SIU with students from over 100 cultures

• Embrace workers in their 50’s and 60’s create a climate of “freedom to work”

• Higher than average % of 19-24 age bracket in the region – SIU & College students

• Man-Tra-Con, other workforce development agencies

• SIU international students

• Large number of SIU graduates with workforce development degrees

• Knowledge and expertise for developing countries in agriculture, coal mining and manufacturing

• Economic opportunity perceived as local and not global

• Limited understanding and history of immigrant workers

• Culture of dependency on government and corporate welfare

• Retraining programs and facilities not focused on new economy

Energy & Mining • Increasing cost of energy driving new

technologies for older forms of material

• Coal mining, clean coal technologies

• Regional energy strategies

• Alternative energy innovations

• Transportation fuels sources

• SIU Energy Center of Excellence

• Significant coal deposits

• SIU Coal Research Center

• Robust energy knowledge base in the region

• Dixon Springs Agriculture Research Center

• Large clean water supply

• Underground abandoned mines

• Proximity: 8 hour drive time to over 2/3 U.S. market

• Energy Co-ops; knowledge, generation and transmission

• Political and policy decisions regarding coal utilization

• Energy projects very high in capital cost

• Converting coal to electric power cleanly and cost effectively

KBE and Innovation • Knowledge drives jobs & wealth creation

• 90% of all new jobs created by companies of 50 employees or less

• Link SIU research to business incubator, expertise and capital

• Global R&D collaborations

• Higher than average % of 19-24 age bracket in the region – SIU and College students

• SIU R&D: Energy and Environment, Biotechnology, Material Technology, Neuroscience

• Coal mining related knowledge; safety, technologies

• Incubators; Dunn Richmond Center, West Frankfurt, Mounds and multiple vacant buildings suitable for business incubators

• SIU Coal Research Center

• Dixon Springs Ag Research Center

• Community Colleges

• State Crime Lab

• Belief that job opportunities are with large manufacturing companies, not startup businesses

• Entrepreneurship not seen as a “real job”

• Limited start-up business financing

• Weak tech transfer system with SIU

• Lack of connection of resources to support the entire region

• Not enough business incubator facilities





Tourism

• International tourism will double by 2020

• Eco, culture, history and adventure tourism

• Recreational tourism focusing on SI unique qualities

• 28% increase in arts and culture industry including community events

• Majority of tourism bookings being made on-line

• $300-$400 million increase in SI tourism industry

• 4 hours drive time from 11.3M potential customers

• Sparta World Shooting Complex

• Shawnee National Forest and other natural environment sites

• Outfitters and hunting lodges

• Vast historical knowledge of area

• Extensive historical sites in SI

• B & B Association

• Wine and Art Trails

• River-to-River Trail

• Number of unique existing community festivals attracting 100,000+ guests

• Numerous museums and art galleries

• Lack of experience in collaborative regional tourism marketing

• Overall poor quality and quantity of lodging facilities — except in Metropolis, Carbondale & Marion

• Low quality accommodations and facilities in Shawnee National Park and other State Parks

• Protectionism within community tourism organizations

• Historically, poor tourism reputation of the region

• Weak on-line regional presence

Livable Communities

• Microprenuers & KBE workers are mobile and attracted to active rural recreational lifestyles

• Recreational services and products, tourism, attractive communities

• KBE creation and attraction

• Visual and creative arts

• SI still has a number of small towns with a large amount of open spaces

• Proximity to natural environment amenities

• Locally grown food will become a $7 billion industry by 2011

• Mild Climate

• Low cost of living

• Proximity to urban centers

• Shawnee National Forest

• Rend Lake

• Multiple State Parks

• Multiple trails for biking and hiking

• Wineries and arts

• Locally grown food products linked with farmers markets

• Proximity to major research university

• Robust Community College system

• Abundance of agricultural land and knowledge

• Low community respect & self-esteem for properties and infrastructure

• Belief that good healthcare is only available in out-of-region urban centers

• Historically not recognized as a “knowledge region”

• Limited entrepreneur culture and support systems

• Lack of community comprehensive planning, zoning standards or building code





Logistics, Transportation &

Distribution • SI is in a prime geographic location to seize the

logistics and distribution markets

• Increasing cost of fuel makes waterborne transportation is attractive; Marine transportation services

• 70% increase in U.S. trade volumes from 1998 – 2020

• 10 nillion TEU (twenty-foot equivalent units for intermodal shipping) East-West trade deficit per year

• Increasing cost of fuel making waterborne transportation more economical

• Proximity: 8 hour drive time to over 2/3 U.S. energy market

• Full compliment of transportation infrastructure; interstate highways, airports, railways, rivers

• Strong existing base and experience of barge and river transport companies

• SIDEX logistics and transportation study

• Large existing trucking industry in SI

• Mississippi & Ohio Rivers

• Export based manufacturers

• CN Rail

• The rapid growth in the logistics industry has been occurring outside of the region

• Limited East-West rail systems

• Weak collaboration within and across industry sub-sectors


©2007 ViTAL Economy, Inc.— 19 —— 19 —

We See A Bountiful Southern Illinois

Vital Economy’s View:

— We have fallen in love with SI; we see it as the Land of the “Garden of the Gods” —

Prime central North American location in close proximity to over 11 million people 425,000 population produces a $17.6 billion economy — equivalent to a major metro-area Multi-directional Interstate highway, waterway and rail road infrastructure Major research university, robust Community College System and workforce development

assets Modern and growing healthcare facilities Large National Forest and numerous unique tourist attractions Extensive mineral, agricultural and unique natural environmental assets Rich soils, mild climate and abundant water resources Numerous innovative and leading industry companies and an entrepreneurship spirit Special, welcoming, talented & caring people who want better for their families Young & old who see SI for the treasure it is, and desire stewardship that reflects its value

ViTAL Economy Conclusion:Southern Illinois has more assets at its disposal than any other

region the Team has advised in 15 years

ViTAL Economy Conclusion:Southern Illinois has more assets at its disposal than any other

region the Team has advised in 15 years


©2007 vital economy, inc. 1 southern illinois: garden of the gods readiness assessment chapter 2:...

Documents

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global economy

vital economy process

vital economy approach

si cois indigenous

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