Presentation to Mercer County Businesses and Students on March 26 about Economic Development Challenges in 2013

1. Spring Breakfast Forum
Tuesday, March 26, 2013
Looking ahead at the
future of
Ohio’s Economy
Mark Barbash
Finance Fund

2. Finance Fund Assists SolarVision with
Celina Renewable Energy Center

3. Major Economic
Shifts are
Impacting
Economic
Development

4. The recovery from this recession is taking
longer than prior recessions

5. We are not replacing jobs lost through the
recession

6. Employers have significantly increased
their use of part time workers.

7. We are not replacing our retiring workers
with our new workers
Workers
80,000,000
60,000,000
40,000,000
20,000,000
0
Retirement Age Workers
Talent Pipeline

8. The Internet is changing the way that
everyone does business!

9. Ohio and the Midwest are leading the
nation in the Manufacturing Recovery

10. Ohio’s Economy is Expected to
continue to Expand in 2013…
1994
2015
2013
2001
National GDP
Ohio GDP
2009

11. Technology is changing Manufacturing,
Service and Distribution

12. Economic Development is not about the
And the Data Shows….
“big deal”…it’s about knowing your
community
• Who are the largest employers in the
community?
• Who do the largest employers buy from ---
and sell to?
• What makes your community special? Why do
people want to live in your community?

13. Even in Attraction….workforce &
And the Data Shows….
infrastructure rank higher than incentives
What Matters Most: Site Selectors Most Important
Criteria
1. State and Local Tax Structure
2. Transportation & Utility Infrastructure
3. Land/Building Prices & Supply
4. Ease of Permitting and Regulatory Process
5. Workforce Skills
6. Local economic development strategy
7. Legal Climate
8. Availability of Incentives
9. State Economic Development Strategy

14. Understand the ROI of your Economic
Development Program
• Communities should have a Cost / Benefit
analysis for investment of time and resources
and incentives
• Is your investment in economic development
generating measurable benefits?
• Communities should understand … and take …
informed risk
• Use incentives strategically and create local
incentives that make sense for your community

15. The slower economic recovery is having an
impact on local budgets
Property Taxes based upon
Valuation
Income Taxes based upon
Wages
Property Taxes based upon
Property Values
Sales Taxes based upon
Sales Revenue
Fees and Transfer Payments
from other sources

16. State & Local budgets are lagging the
recovery

17. Regional Collaboration is the New
Competition
• Companies are looking for your ability to bring
a wide variety of resources to the table
• Regional collaboration: What is your
community’s role in the region?
• Expand your partnership to include workforce,
land use, transportation, philanthropic,
hospitals, permitting

18. Business and Industry think regional, state
and international supply chain
The Solar Supply Chain in Ohio;
WIRENET, 2011

19. Business and Industry think regional, state
and international supply chain
The Shale Supply Chain in Ohio;
EID, 2013

20. Workers are more mobile --- they will
travel further for a job…into the Region

21. The best economic development strategy is
to support your existing businesses
• Understand your existing business community
and help it grow
• Who do your existing businesses buy from, sell
to, and partner with?
• Don’t promise what you can’t deliver
• Retention and Expansion is still the Best
Attraction Strategy

22. Education and workforce training are key
to a successful economy
• Realign workforce programs to focus on three
key priorities:
• Job Readiness training as a public priority
• Specific skill training in direct partnership
with employers
• Technical training is needed because of the
increasing computerization of tasks
• Engage employers more directly: Train for
their job openings and for their future needs

23. Education continues to define economic
recovery.

24. Emphasize a Small Business Strategy that
fits your community
• Small Businesses buy from --- and sell to --- large
businesses and employers
• 28 million small businesses support 49.2 percent
of private sector employment.
• 18,500 large firms employed the other 50 %
• 52 percent of all small businesses are home
based.
• 21.5 % of small businesses employ more than
one person…only 10.7 percent of that group will
employ more than 20 people.

25. What’s NOT Changing?
• The need to develop a strategy is NOT
changing
• The need to develop strong partnerships is
NOT changing
• The need to provide quality services is NOT
changing
• The need to tailor your ED tools to the needs
of your community is NOT changing

26. Key Questions and Next Steps
Key Questions
• Where are you, where do you want to be, how
do you get there
• How well do you know your community?
• Have you established priorities, goals, tasks,
with assigned leads?
• Do you have a toolbox that is appropriate to
your community and priorities?
• Do you have a way of measuring performance
and reacting?

27. Mark Barbash
Chief Operating Officer
Finance Fund
www.financefund.org
markbarbash@financefund.org
(614) 774-7599