www.angeloueconomics.com presented to the: western association of chamber executives october 29,...

www.angeloueconomics.com

Presented to the: Western Association of Chamber Executives

October 29, 2007

Presentation: Business Retention - Advancing a Vibrant Economy

BUSINESS RETENTION IN VIBRANT ECONOMIES 2

OVERVIEW

Who is AngelouEconomics?

Attracting High-Impact Industries

Retaining Businesses in Your Community


Areas of focus: Strategic Planning, Site Selection, Economic Analysis, Marketing Implementation & Branding

One of the largest full-service economic development consulting firms in the U.S

Specialize in creating strategies for high-impact development

Our philosophy: “Clients are our life long Partners”

Economic Development is closely aligned to Sales, Marketing, PR and Branding

ANGELOUECONOMICS


PUBLIC SECTOR CLIENTS


PRIVATE SECTOR CLIENTS


OVERVIEW





“Next to doing the right thing, the

most important thing is to let people

know you are doing the right thing.”

– John D. Rockefeller

BE AGGRESSIVE


RETAINING LOCAL BUSINESSES

Establish a Business Retention & Expansion Program

Focus on collaboration between economic development organizations, government and education

Business needs will be better understood

Higher rate of retention with collaborative environment

Encourage entrepreneurship

Engage major employers in local boards

Offer incentives to existing businesses

Retention leads to national and international recruitment


BUSINESS RETENTION & EXPANSION PROGRAMS

Reach out to business community routinely

Meet with local businesses on a regular basis

Strategize to improving local & state business climate

Utilize survey tools to acquire insight from businesses (twice a year)

Understand supplier base needs

“Transition” new employees & families into the community


BUSINESS RETENTION & EXPANSION PROGRAMS

Offer smart, creative, and flexible incentives

Engage in detailed problem solving strategies for businesses in need

Constantly market incentives to local businesses (keep them in the loop!)

Attract necessary workforce to the community through:

Job fairs

Develop an “Adopt a family” program for new executives

Involve major employers on college and school boards to “customize” training programs and curriculum


FOCUS ON NEW ECONOMY OPPORTUNITIES

O L D E C O N O M Y V. N E W E C O N O M Y

In the old economy, people believed that: In the new economy people believe that:

Being a cheap place to do business was the key. Being in a place rich in talent is key

Attracting companies was the key. Attracting educated talent is key

A high - quality physical environment was a luxury stood in the way of attracting cost - conscious businesses.

Physical and cultural amenities are key to attracting knowledge workers

Regions won because they held a fixed competitive advantage in some resource or skill.

Regions prosper if organizations and individuals have the ability to learn and adapt

Economic development was government - led. Only bold partnerships among business, government, and non - profit sector can bring about change

Source: “Metropolitan New Economy Index,” Progressive Policy Ins titute

O L D E C O N O M Y V. N E W E C O N O M Y


Being a cheap place to do business was the key. Being in a place rich in talent is key

Attracting companies was the key. Attracting educated talent is key







Being a cheap place to do business was the key Being in a place rich in talent is key

Attracting companies was the key Attracting educated talent is key






Source: “Metropolitan New Economy Index,” Progressive Policy Ins titute


ATTRACT & RETAIN YOUNG PROFESSIONALS

25-44 years old demographic is future ED capacity

They directly affect your future economic capacity

Offer life style amenities & wide variety of recreational, artistic, and entertainment options

Community gathering places

Parks, outdoor recreational facilities

Cultural diversity

Availability of professional training, schools, etc.


OVERVIEW





“Everybody has the will to win; But it

is only those who are willing to

prepare that do win”

– Bob Knight, Head Basketball Coach, Texas Tech University

FOCUS ON WINNING!, NOT BEING COMPETITIVE


OPPORTUNITIES

Nanotechnology: An Enabling Technology Data Centers Clean Energy Software and IT Global Opportunities


NANOTECHNOLOGY

Enabling technology for a variety of industries Semiconductor industries

Already operating at nano-scale; future site selection opportunities in U.S. are in semiconductor design, not manufacturing

Life sciences – bionanotechnology Cancer treatments

Clean Energy – nanophotovoltaics Consumer goods – apparel, household paints,

small electronic devices


U.S. NANOTECHNOLOGY MARKET

21%

8% 17%

20%

34%Materials

IT

SemiconductorHealthcare

Other

Source: Technolytics


DATA CENTERS

Why Target: Avg. wage = $75,000 Consolidation to large facilities

Market Drivers: Cost Savings & Consolidation and M&A Disaster Recovery Sarbanes/Oxley, Hippa Increased website usage, search engine, ecommerce 3D internet, video on demand, TV over IP


DATA CENTER SITE SELECTION FACTORS

Free from natural disasters Hurricanes, tornados, earthquakes, wildfires, snowstorms, etc.

Cheap, reliable power Increasing focus on green energy

Reliable fiber optics connection Must be able to serve national and international locations

Total 2006 Capex: $15+ Billion ($1.9 Billion by Google, $1.5 Billion by Microsoft)

Total 2006 Permanent Jobs Created: 5,000+ Total 2006 SF Constructed: 5,000,000+ SF


COMPANIES EXPANDING DATA CENTERS

Sun Microsystems UPS, Intuit Merrill Lynch Honeywell Cisco, Ask.com Rackspace Data Foundry Dell, T-Mobile Citicorp HP

Stanford University State of Texas State of Wisconsin Federal Government

Private Sector Google Microsoft Yahoo, Ebay FedEx, Lowes Home Depot CheckFree


CLEAN ENERGY

Why Target: Avg. wage = $80,000

Market Drivers: Price of oil Higher demand in the U.S., China & India Clean energy becoming price competitive Hedging against climate change policies Energy mix


CLEAN ENERGY VENTURE CAPITAL

$468

$1,329$932

$566 $547$716

$917

$2,425

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1999 2000 2001 2002 2003 2004 2005 2006

0%

10%

20%Millions Invested Percent of Total VC


CLEAN ENERGY INDUSTRY GROWTH

$21 $18 $16$1

$81

$61$69

$16

$0$20$40$60$80

$100

Biofuels Wind Solar Fuel Cells

20062016

Global Market (Billions)

Source: CleanEdge

2005-2006 Growth:

39%


CLEAN ENERGY VENTURE CAPITAL

Source: CleanEdge

Selected Energy-Tech Sector Investment (in Millions)

2004 2005 2006 % Change

Batteries $73 $52 $120 64%

BioFuels $0.8 $20.5 $813 ∞Energy Efficiency $192 $272 $476 148%

Fuel Cells $131 $86 $175 34%

Solar $68 $156 $264 288%


SOFTWARE / IT

Why Target: Avg. wage in Software = $100,000 Avg. wage in Systems Design = $79,000 $1.4 trillion Industry

Market Drivers: Broadband, gaming, wireless, mapping Increasingly competitive – rise of YouTube,

MySpace Search engine wars, value in content creation 3D internet, TV over IP


SOFTWARE GROWTH SECTORS

Virtual Software Google Docs & Spreadsheet just beginning to

challenge Microsoft Office Open Source Gaming Medical Security Customer Relations Management Systems


MENTAL CHANGE

“It is not the strongest of the species that survives, or the most intelligent.

It is the one that is the most adaptable to change”

-Charles Darwin

thank you.

questions?

AngelouEconomics2801 Via Fortuna, Suite 430

Austin, Texas 78746

PH: 512-225-9322FAX: 512-225-9283

www.angeloueconomics.com

www.angeloueconomics.com presented to the: western association of chamber executives october 29,...

Documents

n e w e c o n o

d e c o n o

new economy people

costconscious businesses

old economy

local state business

local boards

metropolitan new economy