Community Business Matching Model
Overview and Application
Session Overview
• Community Business
Matching (CBM)
methodology
• CBM application:
Colorado River Region
Background
• Original model: Catherine
Halbrendt-Chang, University of
Vermont, targeting agriculture
• Current Model: Western Rural
Development Center team, all
economic sectors
Frequently Used Techniques
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Trends
Input-output models
Location quotients
Shift-share
Non-economic variables
Past Rural Economic
Development Activities
• In ’60s and ’70s:
– Attracting manufacturers
• Incentives:
– Cheap land & labor
– Tax abatements and subsidies
Changes in Economic
Development
Intensified global competition
+ Labor-saving technical and
organizational innovations
= Rural areas lost competitive edge
Changes in Rural Economies
Rural areas experience:
• Difficulty attracting manufacturers
• Growth only in lower-skilled jobs
Rural areas respond by:
• Targeting small businesses, tourism or service
sectors
• Focusing on business retention and expansion
Current Economic
Development Strategies
• Business retention &
expansion
• Industrial targeting
• Industry cluster
targeting
The CBM Difference
• Involves community leaders
• Incorporates environmental
and social aspects
• Acknowledges trade-offs in
multiple goals
• Employs sound quantifiable
measurements
CBM Helps Communities Identify:
• Local goals & assets
• Businesses whose needs
are consistent with these
Considering the Trade-Offs
• Economic quality
• Environmental quality
• Social quality
Community Business Matching Model
Community
Assets
Goals
The
Ideal
Compatibility
Desirability
Needs
Profile
Business
Source: Cox et al., 2009
Two Measures of the CBM Model
• Desirability measures how
likely a business is to meet
community goals.
• Compatibility measures
how likely the business is to
locate in the community.
Desirability Framework
Community Profile
Community Goals
Economic Quality
Business Needs
Desirability
Environmental Quality
Social Quality
Economic Quality
Environmental Quality
Strength of
the Match
Social Quality
Compatibility Framework
Business Profile
Community Assets
Business Needs
Compatibility
Acreage and Space
Physical Infrastructure
Economic Infrastructure
Quality of Life
Strength of
the Match
Acreage and Space
Physical Infrastructure
Economic Infrastructure
Quality of Life
Desirability and Compatibility
• Compatible = good attraction opportunities
• Desirability = community negotiation power
• Compatibility = assets for investment
Desirability-Compatibility Graph
CBM Workshop Modules
Modules
Activities
1. Taking Stock
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Introductions and familiarization with the group
• Pre-assessment activity
• Introduction to community economic development
• Take stock of past CED efforts
2. Looking to the future
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3. Identifying what is
most important
4. Checking out
togetherness
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What is sustainable development?
Tomorrow looks like…
Economic development basics
CBM goal ranking activity
Industrial targeting and cluster analysis
Goal ranking results
CBM Workshop Modules
Modules
5. Finding out what we have
Activities
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6. Measuring our assets
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7. Sharing progress
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8. Determining the
community’s options
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Resource/asset use at the community level
Asset map of your community
The CBM asset assessment process
Asset assessment of your community
Review asset assessment progress
“Finish it up” activity
Review CBM model results – current businesses
Local industries
CBM Workshop Modules
Modules
9. Investigating possibilities
Activities
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10. Making decisions
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11. Taking action
12. Planning next steps
Review CBM model results - new industries
Investigate community’s matches
Strategic marketing
Targeting strategy
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Review progress
“Follow up”
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“Take a look back” and post-assessment activity
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Steps After CBM
• Establish diverse strategic planning committee
• Research, rank and develop strategies
• Produce marketing materials
• Develop a targeted business contact strategy
• Develop additional action strategies for other
desirable sectors
CBM Case Study:
Colorado River Region
CBM Graph
NV-AZ Region 4-digit NAICS Desirablity vs. Compatibility
100%
5415
5414
5121
3346
5416
95%
6215
6214
5413
4234
4231
5417
4238
4236
90%
Compatibility
5418
4812
4246
85%
4237
5111
4242
80%
4248
3339
3362
4235
4841
75%
4233
4241
70%
50%
55%
60%
65%
70%
75%
Desirablity
80%
4243
85%
90%
95%
100%
Colorado River Region
Best Match Industries
NAICS Description
Desirability Compatibility
(Community)
(Business)
5416
Management, Scientific, and Technical
Consulting Service
1.000000
0.959525
5414
Specialized Design Services
0.927677
0.999801
4812
Nonscheduled Air Transportation
0.956396
0.880457
5417
Scientific Research and Development Services
0.904167
0.938999
3346
Manufacturing and Reproducing
Magnetic and Optical Media
0.871339
0.971191
5415
Computer Systems Design and Related Services
0.860522
1.000000
4238
Machinery, Equipment, and Supplies
Merchant Wholesalers
0.860000
0.917423
6214
Outpatient Care Center
0.859045
0.938767
How Has CBM Helped?
• Formalized economic development organizations & plans
in both cities
• Laughlin acquired 9,000 acres and completed master plan
for industrial & commercial development
– Recently secured one of the largest international alternative energy
companies, poised to invest nearly $6 billion and create 3,000
permanent jobs at an average wage of $70,000/yr
• Bullhead City master planned area for industrial and
commercial development
– Added 50+ warehousing jobs with current potential of 200+ more
Final Reflections
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Key takeaways from this session?
Most helpful information?
Least helpful?
Other items?