Community Economic Development
Voices of the Region
June 2013
Frank Knott – fknott@vitaleconomy.com
Mark Madsen – mmadsen@priorityone-advisors.com
Jim Haguewood – jim@onegroupconsulting.com
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© 2013 ViTAL Economy, Inc.
Community Report-back Agenda
Meet and Greet
Welcome & Introductions
SeVEDS & Why a CEDS is important
Report-back on what communities told us about their economy
Report-back from online survey of Young Professionals
VE Perspective from What we Heard
Discussion
SeVEDS Call for Projects
Objectives:
• Report back what people have said regarding the SE Vermont Region
• Validate and/or correct what we heard
• Identify gaps – what should have been said that hasn’t yet
• Begin Connecting the Dots – Assets, Opportunities, People
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© 2013 ViTAL Economy, Inc.
Community Report-back Agenda
8:30 AM - Meet and Greet
8:45 AM - Welcome & Introductions
9:00 AM - SeVEDS & Why a CEDS is important
9:30 AM - Report-back on what communities told us about their economy
10:00 AM - Break
10:15 AM - Report-back from online survey of Young Professionals
10:35 AM - VE Perspective from What we Heard
10:55 AM - Discussion
11:15 AM - SeVEDS Call for Projects
Objectives:
• Report back what people have said regarding the SE Vermont Region
• Validate and/or correct what we heard
• Identify gaps – what should have been said that hasn’t yet
• Begin Connecting the Dots – Assets, Opportunities, People
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© 2013 ViTAL Economy, Inc.
SeVEDS Vision
Southeastern Vermont will have an economy that generates
long-term growth and prosperity and that improves our quality
of life and sustains our quality of place.
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© 2013 ViTAL Economy, Inc.
SeVEDS Sense of Urgency
Low wages, a rising cost of living and limited job
opportunities create a disconnect between the skills
needed by employers and the skills held by the workforce.
This leads to a widely shared sense of economic insecurity
resulting in many Vermonters looking for economic
opportunity elsewhere, and few choosing Vermont as a
place to live and conduct business.
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© 2013 ViTAL Economy, Inc.
SeVEDS Mission Statement
SeVEDS exists to reverse the economic decline of this region
Allowing the stagnant economic and demographic
trends that have persisted over the last decade to
continue in southeastern Vermont threatens the
Vermont Brand and post card perfect perception
of our quality of place. It is time to stick a stake in
the ground and say “enough is enough” and
develop strategies and actions based on our assets
to reverse those trends.
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© 2013 ViTAL Economy, Inc.
Why Does SeVEDS Want To Create a CEDS ?
•
Provides more clarity for the initial SeVEDS strategies
•
Educates community to be more engaged and take ownership of CEDS
•
Proven process for building and galvanizing public support
•
Develops a valid implementation plan for the SeVEDS strategy
•
Increases public & private sector networking to achieve more opportunity
•
Creates a common and consistent economic development message
•
Enables strategy integration with Windham Regional Plan & beyond
•
Connects public works projects to priority economic development projects
•
Facilitate discussion of need for an organized system of redevelopment
•
Provides planning mechanism for a post VY economy
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© 2013 ViTAL Economy, Inc.
Engaging the Southeast Vermont Region in Creating a CEDS
Engaging and listening to the voices of
the region –
• Kickoff community session in February
• Community sessions in April
• Londonderry
• Bellows Falls
Reviewed the Economic Profile of
the SE Vermont region.
• Wilmington
• Brattleboro
• Focus group interviews in April
• Survey of Young Professionals
• Focus group interviews being held in
June
• Report-back community sessions in
June
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© 2013 ViTAL Economy, Inc.
Over 250 people in SE Vermont
directly engaged via community
sessions, focus groups and an
online survey of young professions.
The majority of participants readily
agreed that the information
presented accurately paints a
picture of the region that is stagnant
(at best) and slowly declining (at
worst).
No Smoking Gun or Compelling Story (Proverbial frog in hot water)
While three-quarters of participants agree with
the data, we also heard loud voices from those
who distrust the fundamental regional data and
are suspicious of longstanding economic
principles which define and explain the rational
behavior of people making life and business
decisions.
As we listened to participants we found
several common themes across the region,
which we will highlight today.
However, there does not seem to be any
commonly shared Sense of Urgency to change
the stagnant path of the regional economy.
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© 2013 ViTAL Economy, Inc.
Why should I care? Should SeVEDS bother with a CEDS?
Conundrum:
noun (con-nun’-drum)
1. an intricate and difficult problem which evades resolution
2. a question or problem having only a conjectural answer
3. a riddle whose answer is or involves a pun
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© 2013 ViTAL Economy, Inc.
Future Implications of the Stagnant SE Vermont Economy
Population and Employment Demand
US Census Data 1970-2012
Woods & Poole Projections 2013-2035
45,000
Pop 18-44
40,000
Pop 45-64
35,000
Pop 65+
Employment Demand
30,000
Labor pool shortfall
25,000
20,000
15,000
10,000
5,000
2035
2030
2025
2020
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
-
Windham County is currently a net importer of labor (approximately 2,220 persons).
Given current demographic and economic trends labor demand is projected to increase
while the available labor pool (age 18-64) is stagnant or declining over the next 20 years.
This will result in a significant labor shortfall. VE estimates that this would translate into
approximately 6,610 lost job opportunities, $249 million in lost earnings, and missed
opportunity for $525 million in regional Gross Product.
Sources: US Census, Woods & Poole, Vital Economy
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© 2013 ViTAL Economy, Inc.
Your thoughts –
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© 2013 ViTAL Economy, Inc.
April Community Engagement Sessions
•
•
•
•
Bellows Falls
Londonderry
Wilmington
Brattleboro
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© 2013 ViTAL Economy, Inc.
Bellows Falls Community Session
Opportunities
27 Participants
Challenges
Perceptions about Quality of K-12 Ed
Local Value-Added Agriculture
Farmer’s Markets
Retail struggles to compete
against Tax-Free NH
Promote ‘Tech Ed’ in schools
Weak entrepreneur support system
Broadband Access
SIT/World Learning could be link
to attract people from around the
world to SE Vermont
Childcare
Attracting & Retaining Young People
Forest Resources
Community Character & Amenities
• Lack of local ‘gathering places’
• Limited use of historic buildings
Renewable Energy Industry Cluster
‘Green’ Building Materials Industry Cluster
Lack of Job & Career Opportunities for
youth and Young Professionals
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© 2013 ViTAL Economy, Inc.
Your thoughts –
•
Have we capture what you said?
•
What was missed?
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© 2013 ViTAL Economy, Inc.
Londonderry Community Session
19 Participants
Opportunities
Challenges
Local Value-Added Agriculture
Negative Perceptions of ‘Economic
Development’
Farmer’s Markets
Bias against Wealth Creation in VT
Vermont Country Store
Lack of Collaboration
Four-Season Recreation Opportunities
• Skiing
• Trails
• Fall Colors
• National Forest
• Events
Limited Leadership
Weak entrepreneur support system
• Lack of Capital
Negative State Business Climate
Weston Playhouse
Public Transportation not Connected to
Trains
Kinhaven Music School
Attracting & Retaining Young People
Sense of Place
Limited Infrastructure Development
• Sewer & Water
• Lack of Cross-Community Collaboration
Renewable Energy Industry Cluster
‘Green’ Building Materials Industry Cluster
Lack of Job & Career Opportunities for
youth and Young Professionals
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© 2013 ViTAL Economy, Inc.
Your thoughts –
•
Have we capture what you said?
•
What was missed?
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© 2013 ViTAL Economy, Inc.
Wilmington Community Session
41 Participants
Opportunities
Challenges
‘Interdependence’ is a strength
‘Fierce Independence’ is a weakness
Farmer’s Markets
Focus of Higher Ed is Brattleboro
Local Value-Added Agriculture
Perceptions about Quality of K-12 Ed
People come here for the lifestyle
Many little disconnected efforts but
no cooperation and collaboration
90% of our market is from outside the
region – this brings addition money back
into SE Vermont
Weak entrepreneur support system
• Lack of Capital
• And what exists is too far away
Forest Resources
Broadband Access
‘Green’ Building Materials Industry Cluster
Need to look at transportation issues
collectively on a broad regional basis
Attracting & Retaining Young People
Tourism Economy is Seasonal
Lack of Job & Career Opportunities for
youth and Young Professionals
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© 2013 ViTAL Economy, Inc.
Your thoughts –
•
Have we capture what you said?
•
What was missed?
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© 2013 ViTAL Economy, Inc.
Brattleboro Community Session
Opportunities
50 Participants
Challenges
Perceptions about Quality of K-12 Ed
Farmer’s Markets
Retail struggles to compete
against Tax-Free NH
Proximity to East Coast Markets
Weak entrepreneur support system
Real Estate values in Downward Spiral
SIT/World Learning could be link
to attract people from around the
world to SE Vermont
# of Non-Profits in Brattleboro has negative
tax impacts
Workforce Skills disconnect with Industry
Needs
Cohort of highly trained professionals at VY
Attracting & Retaining Young People
Renewable Energy Industry Cluster
Community Character & Amenities
• Lack of local ‘gathering places’
• Limited use of historic buildings
• Too much low income housing
‘Green’ Building Materials Industry Cluster
Lack of Job & Career Opportunities for
youth and Young Professionals
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© 2013 ViTAL Economy, Inc.
Your thoughts –
•
Have we capture what you said?
•
What was missed?
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© 2013 ViTAL Economy, Inc.
Common Themes of Opportunity we Heard Around the Region
People support local working farms &
local food systems
We highly value the Character of
our communities
We have underutilized forest resources
People come here for the lifestyle
VT is ideally positioned to capture a
‘Green’ Building Materials Market in the
Eastern US
Health-focused population
SIT/World Learning could be link
to attract people from around
the world to SE Vermont
There are unrealized opportunities to
create a Renewable Energy Industry
Cluster
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© 2013 ViTAL Economy, Inc.
Common Themes of Challenges we Heard Around the Region
There are very negative perceptions
of ‘Economic Development’
There is a persistent lack of Job &
Career Opportunities for youth and
young professionals
Many people have a strong bias
against Wealth Creation in VT
We can do a better job of attracting &
retaining young people
There are mixed perceptions about
the quality of K-12 Education
We need improved broadband and
wireless telecom services
Weak Entrepreneur Support System
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© 2013 ViTAL Economy, Inc.
Your thoughts –
•
Have we capture what you said?
•
What was missed?
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© 2013 ViTAL Economy, Inc.
Young Professionals Online Survey
•
•
•
•
•
•
•
Average respondent age: 36.5 years
70% married
50% of respondents work in Brattleboro
24% of respondents work in Dover/Wilmington
Notable lack of responses from Londonderry, and Bellows Falls/Rockingham
44% of respondents have bachelor’s degree, 39% masters
Cited as “Strength of Region”
• 37% cited politics (a common word was progressive)
• 25% cited outdoor recreation opportunities
• 24% cited scenic beauty
• 22% cited arts
• schools, cultural diversity and locavore/working lands each were cited by
18% of respondents
Note: Total greater than 100% as more than one response allowed on this
question
• 66% plan to be here in 5 years
• 31% don’t know if they will be here in 5 years
• 65% of respondents replied that loss of their job, or their spouse/partner’s
job, as a primary reason they would leave the region
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© 2013 ViTAL Economy, Inc.
Young Professionals Online Survey – Regional Weaknesses
• “There is no high tech culture at all. It is a challenge to even communicate with
community meetings or groups with Skype.”
• “High cost of living (food, rent, gas), low wages, lack of robust job market, poor
telecommunications infrastructure, lack of convenient public transportation locally
and to nearby metropolitan areas (esp. Boston).”
• "There is a real split among the young folks who are here. There is no cohesion
among young professionals.”
• “Lack of a large university.”
• “Lack of ethnic/race diversity.”
• “Limited nightlife opportunities.”
• “Lack of county-wide government structure to drive regional policy.”
• “Reliance upon tourism rather than self-sustaining economy.”
• “The few networks that do exist (business, economic development, arts/culture,
nonprofit, etc.) are not collaborating across sectors.”
• “Jobs in the region do not pay comparable salaries to other regions and high taxes
make homeownership challenging, even with two incomes.”
• “We do not operate on a regional level - Vermonters and southeastern Vermonters
in particular, are very vested in being "different and special" from other areas of the
state and region.”
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© 2013 ViTAL Economy, Inc.
Young Professionals – Perceptions versus Reality
Perceptions of amenities and lack of social interaction opportunities for young
adults varied by age of respondents
Education also elicited very mixed comments
• Higher education opportunities were considered to be “limited” and “not relevant”
to the local job market
• Elementary education in many areas of the region is viewed highly favorably
with small class sizes, individual student attention, and generally high quality.
• Secondary education was not viewed as a positive attraction for the region.
Most people who leave Vermont do so for career opportunities for themselves
and/or their partners and spouses. This indicates that the lack – or the perception
of lack – of jobs is a clear and consistent barrier to long-term economic well being
in Vermont.
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© 2013 ViTAL Economy, Inc.
Why do people come to or remain in SE Vermont
1.
2.
3.
4.
5.
Family
Enjoy small town living
Recreational activities they enjoy
Progressive culture
Natural environment
To attract and keep a next generation workforce in SE Vermont, the region must
offer those things that young professional value. (See next slide)
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© 2013 ViTAL Economy, Inc.
Why is this so important
Research consistently demonstrates that people choose where to live based
on 7 fundamental regional characteristics:
Community Vitality – People value a vibrant community where they see people are “out
and about” using public parks trails and recreation areas, attending farmer’s markets and
living in a healthy community.
Cost of Lifestyle – People want a community where they can afford to live, work and play.
Education and Learning Opportunities – People want to plug into strong schools, a smart
community, life-long or traditional learning (i.e. yoga or cooking classes; book clubs; college
classes etc.)
Earning Potential – People need a broad choice of places to work and an environment that
is friendly to innovators and entrepreneurs.
After Hours Amenities – People like authentic local places to have dinner, meet for coffee,
hear live music, or just hang out.
Social Capital – Most people value living in a diverse community where people are engaged
and involved in community life, where taking risks to be an innovator and entrepreneur are
highly valued
Around Town – People like living in a community that’s easy to navigate, don’t want long
commute times and like to be close to large urban centers.
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© 2013 ViTAL Economy, Inc.
Vital Economy Observations
•
•
•
•
•
•
•
•
Business Climate in SE Vermont
Workforce & Education
Higher Education Opportunities
Tourism
Agriculture and Ag-Tourism
Manufacturing
Strategic Location
Leveraging the Green Vermont Brand
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© 2013 ViTAL Economy, Inc.
Business Environment in SE Vermont
Four primary reasons companies
locate and/or remain in Southern
Vermont:
Reasons cited for NOT locating or
remaining in SE Vermont:
A. State tax structure
1. The founder has roots in Vermont
B. Local property taxes
2. There are location based assets
central to their business (dairies,
timber, ski resorts)
C. State regulation
3. There are public perception and/or
marketing advantages to the
“Vermont Brand”.
4. Proximity to New England and East
Coast Markets.
D. High energy costs
E. Lack of adequate
telecommunications/broadband
infrastructure
F. Small workforce pool
G. Perceived lack of ROI opportunities
on investments (particularly R.E.
investments)
H. Access to supply chain
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© 2013 ViTAL Economy, Inc.
Workforce & Education
There is a very obvious disconnect between
workforce development, education systems,
and the needs of business in the region.
• There is no connected, collaborative system
between High Schools-Community CollegeUniversities
• Four-year liberal arts universities in the region
and the community college are not focused on
preparing future employees with skills needed
in local economy.
• A true workforce development system is almost nonexistent outside of individual business employee
training
• Notwithstanding a few individual companies, overall
job growth is so stagnant that new graduates (whether
from local institutions or from outside the region) see
not opportunities in Southern Vermont.
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© 2013 ViTAL Economy, Inc.
Quality of Place Recommendations
SeVEDS needs to tackle the Vermont Brand Quality of life myth issue. This
is a regional issue that covers a whole spectrum of social, community
development, and economic issues.
1. Engage College Students & Young Professionals in SeVEDS to get broader
perspectives and involvement in Community Economic Development efforts
2. Develop Quality of Place factor goals in those areas where the region ranks
low or had mixed perceptions
• Balance
• Economic Opportunities
• Vitality
• Education
• Creativity and Innovation
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© 2013 ViTAL Economy, Inc.
Industry Sectors and Niche Markets
SE Vermont Economic Sectors
Technology
Driven
Precision
Manufacturing
Business &
Technology
Services
High Quality
Post-Secondary
Education
Logistics
&
Distribution
Hospitality,
Retail &
Tourism
Niche Markets Opportunities
• Higher education
• Tourism
• Small scale, high value, technology driven manufacturing
• Transportation, Distribution & Logistics (TDL)
• Precision Technology Driven Manufacturing
• Healthcare
• Green/wholesome branded products or services
–
Vermont natural/fresh branded food products
–
Expected rapid expansion for demand of Green building products.
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© 2013 ViTAL Economy, Inc.
Healthcare
Higher Education Niche Market Opportunity
Higher Education entities in SE Vermont are rich in programs. Location and
facilities are not as important as programs, and are becoming less so as
advances in technology continue to transform the delivery of education.
A standout opportunity to leverage the strengths of these high education assets
was identified via “Chautauqua Institution” type learning opportunities –
perhaps in collaboration with the resorts which have underutilized lodging
facilities during summer months.
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© 2013 ViTAL Economy, Inc.
Tourism
SE Vermont is not considered a destination venue, but is a drive market for fallcolor tourism and winter skiing. Market is based on proximity to East Coast
urban centers.
This does suggest that there should be more four-season opportunities
developed for that drive market.
• Recommend that a working group be established to research top markets
– Demographics and background of frequent visitors/2nd home owners
– Identify business ownership/executives
– Leverage interest in moving to SE Vermont and commuting to work,
versus living in City and commuting to recreate.
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© 2013 ViTAL Economy, Inc.
Agriculture and Ag-Tourism
By whatever label you what to refer to this sector
– Localvore, Local Ag, Farm-to-Plate, Certified
Organic, Safe Foods, etc. – there is a vibrant
local small-farm agricultural industry in SE
Vermont.
A recent NPR feature on Vermont suggests that
the state ranks #1 in the U.S. for citizen
commitment to buy locally produced food.
http://www.npr.org/blogs/thesalt/2013/04/09/176693947/vermon
t-bests-the-nation-in-local-chow
SE Vermont has also done a good job of linking small farm agriculture with
tourism.
While not a major economic engine, this sector of the economy is important to
citizens and for maintaining the rural character and landscape of the region with
working farms.
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© 2013 ViTAL Economy, Inc.
Manufacturing
SE Vermont is home to national and international leading firms in the manufacture
of high-precision components and sub-assemblies for the aircraft engine,
aerospace, medical, optical, automotive, specialty bearing, and other commercial
industries.
• Regional history and skills in precision manufacturing dating back to mid-1700s
• Small scale, high value, technology driven manufacturing
• Smaller workforce pool as opposed to large, heavy industry
• Scale consistent with demographics and political tendency to embrace smallmedium size and/or employee owned business
How can the market connection and manufacturing experience of this industry
sector be leverage to grow the regional economy?
Sector has unfilled workforce needs for engineers and mid- & high-skilled shop
floor employees.
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© 2013 ViTAL Economy, Inc.
SE Vermont Strategic Location
From Brattleboro
Miles
Time by car
Albany, NY
80
2 hrs.
Boston, MA
116
2 hrs. 25 min.
Burlington, VT
151
2 hrs. 30 min.
Hartford, CT
85
1 hr. 25 min.
Montreal
393
4 hrs.
NYC
205
3 hrs. 40 min.
Providence, RI
137
2 hrs. 20 min.
SeVEDS is at the center of major NNE and
Canadian Population Centers and thus has
significant Transportation, Distribution &
Logistics Opportunities
• Proximity to major New England and
East Coast markets
• Easy interstate access
• Expectation of increased speed and
weight capacity on improved rail line to
NYC.
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© 2013 ViTAL Economy, Inc.
Sustainability and the Green Vermont Brand
There is an increasing awareness and
demand for Green, Sustainable & Naturally
Wholesome products and services.
Across the U.S., the Vermont Brand is
synonymous with those characteristics.
• Vermont natural/fresh branded food products have met niche market success
• We are right now at the cusp of rapid expansion in demand for Green Building
Materials
• BuildingGreen, Inc. a nationally recognized publishing company on green
buildings, is based in Brattleboro
• Two manufacturers of Structurally Insulated Panels (SIPS) in Windham County
• Two businesses within 30 miles of Brattleboro have installed major solar arrays
either on their roofs or in adjacent fields.
Market Opportunities:
• Natural and Value-added food products
• Green Building Materials Manufacturing and or Marketing/Distribution under a
Green/Vermont brand
• Green building consulting services
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© 2013 ViTAL Economy, Inc.
Your thoughts –
— 41 —
© 2013 ViTAL Economy, Inc.
Call for Projects to be listed in the CEDS
What role do Community & Regional Projects play in the CEDS?
The CEDS is a regional plan for growth of the economy created using a
regional public approach with broad-based and diverse public and private
sector participation, and should include a section listing all suggested projects
and the projected numbers of jobs created.
It is helpful for the rest of the region as well as potential new businesses to
understand what we as a region are trying to accomplish. Inclusion of projects
in the CEDS indicates that they are aligned with regional goals for growth.
Projects submitted for inclusion in the CEDS will be prioritized based on a set
of objective criteria highlighting projects, programs, and activities which
address the region’s greatest needs or which will best enhance the region’s
competitiveness.
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© 2013 ViTAL Economy, Inc.
Background
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© 2013 ViTAL Economy, Inc.
SeVEDS 2017 Objectives (Goals)
1. Create Operational and Fiscal Sustainability Plan for SeVEDS by
December 2011
2. Improve Wage Parity with Surrounding Labor-shed
3. Increase the Size and Quality of the Workforce
4. Increase population proportion of 25-44 year olds from 23% to
28% of total population by 2017
5. Create an Entrepreneurial Environment
— 44 —
© 2013 ViTAL Economy, Inc.
Projected SeVEDS Region 2017 Goals and Outcomes
Note: Baseline and Goals based on 2009 U.S. BEA Data & Estimates
Base SeVEDS Region Metrics
Baseline*
2017 Goal
%Change
Total Change
Population
42,605
42,605
0%
-
Employable Population (16 and older)
35,520*
36,171
+1.8%
+651
65%*
68.8%
+5.8%
-
Total Employed
23,089*
24,894
+7.8%
+1,805
Average Wage
$38,820
$39,848
+2.6%
+$1,028/yr
Total Region Wages
$896M
$992M
+10.7%
$96M
Regional GDP
$2.37B
$2.8B
+18.1%
$430M
Baseline
2017 Goal
Change
.566
.650
+14.1%
Increase Median Annual Income for Associates/Some
College workforce
$26,855
$32,000
+19.1%
Increase Median Annual Income for Bachelors Degree
workforce
$32,518
$39,000
+19.9%
Increase 20-44 employment by 20% in five years (2009 data)
10,691
12,829
20%
+2,138
Increase Associates Degrees/Some College and Technical
Certificates among 18-24 age bracket
38%
(1,495)
47%
(1,884)
+23.6%
+389
9,533
11,439
20%
+1,906
Labor Participation Rate
Regional Strategic Metrics
Ratio Net Earned Income/Total Income
Increase the 25-44 age population by 20% in five years
* Base Line data is as of Spring 2010
— 45 —
© 2013 ViTAL Economy, Inc.
+$5.145/yr
($2.47/hr)
+$6,482/yr
($3.12/hr)
Balanced S.M.A.R.T. CEDS Approach
Industry Sectors
SeVEDS Five Year
Regional Goals
Technology Driven
Precision
Manufacturing
Ratio of Net Earned income
To Total Income
↑ .566 to .65
Logistics &
Distribution
Increase Median
Annual Income
AS/some College
to $32,000/yr.
Business &
IT Services
Goals
Inform
High Quality
Post Secondary
Education
Increase 20-44 age
Employment 20%
Hospitality,
Retail & Tourism
Increase AS/Tech Certs.
For 18-24 age
From 38% to 47%
Healthcare
Strategic Components
CEDS Planning
Business Retention & Expansion
Business Recruitment
Business Incubation
Leadership Training
— 46 —
© 2013 ViTAL Economy, Inc.
Increase Median
Annual Income
Bachelors Degree
to $39,000/yr.
Increase Pop of
25-44 age by 20%
Opportunities and Challenges Defined by SeVEDS in 2010
OPPORTUNITIES:
1.
Vermont Brand
2.
Location
3.
Imminent Technology infrastructure
4.
Manufacturing base
5.
Educational institutions
6.
Recreation
7.
Cultural and Arts
8.
Tourists, second home owners
bringing dollars into region
9.
Key tourism infrastructure
10. Access to government
11. Healthcare Infrastructure
CHALLENGES:
1.
Lack of Cell Service and Broadband
2.
Weak local market/economy
3.
Declining workforce population
4.
Taxes
5.
Declining earned income
6.
Finding employment – not enough jobs
7.
Lack of investment capital
8.
Disconnect between education and jobs
9.
Capacity -- Lack of critical mass
10. Declining student enrollment
11. Qualified Workforce recruitment
— 47 —
© 2013 ViTAL Economy, Inc.
Additional Opportunities and Challenges identified in 2013
OPPORTUNITIES:
1.
Vermont Brand
2.
Location
3.
Imminent Technology infrastructure
4.
Manufacturing base
5.
Educational institutions
6.
Recreation
7.
Cultural and Arts
8.
Tourists, second home owners
bringing dollars into region
9.
Key tourism infrastructure
10. Access to government
11. Healthcare Infrastructure
12. Healthy and health-focused population
CHALLENGES:
1.
Lack of Cell Service and Broadband
2.
Weak local market/economy
3.
Declining workforce population
4.
Taxes
5.
Declining earned income
6.
Finding employment – not enough jobs
7.
Lack of investment capital
8.
Disconnect between education and jobs
9.
Capacity -- Lack of critical mass
10. Declining student enrollment
11. Qualified Workforce recruitment
12. Redevelopment capability and capacity
13. Stagnant Real Estate Market
14. Lack of Innovation and true
Entrepreneurship
15. Drug Culture
16. Families with Children in Poverty
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© 2013 ViTAL Economy, Inc.
P→C Builds ROI Rationale for Regional Collaboration
P
C
P=Producer & C=Customer
Friction is the cost of getting from P to C
C
P
Move Up the Value Chain, Capture Greater Share of Value Chain
Margins, Increase Economic Prosperity
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© 2013 ViTAL Economy, Inc.
Regional Economic Swimming Pool
CONSUMER SERVICES SECTOR
activities that directly and indirectly address the
consumption demands of the local residents EXPORT ACTIVITIES*
bring money into the region by selling
goods and/or
IMPORT ACTIVITIES
services of value and importance to
bring in goods and services to
national or international markets
serve the needs and
desires of the community; but
capital flows out
*the only source of new
capital that the region
can use to pay for goods
and services to meet its
needs and desires
SE Vermont Economy
$$$
Investment Attraction Keeps Filling
The Pool (Economy) with More Water (Capital)
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© 2013 ViTAL Economy, Inc.
3 Keys to Economic Transformation
Collaboration
Builds Sufficient Critical Mass to Compete Globally, while
Emerging Cluster Strategies Assure Regional growth
+
Connectivity
Links Geographically Remote Resources to Increase Access, while
Creating Opportunity, Building Diversification, Enabling Collaboration
+
Changed Spending
Increases Productivity and Revenues
Opens New Markets, Expands Opportunity,
Establishes Measurable Benchmarks and Goals
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© 2013 ViTAL Economy, Inc.
Eight Steps for Leading Change
Implementing & Sustaining
Transformation
8. Make it Stick
7. Sustain the Change
Engaging & Enabling
the Whole Community
6. Create Short-term Wins
5. Empower Others to Act
Creating a Climate
for Change
4. Communicate for Buy-in
3. Define the Change Impacts
2. Create the Vision & Build the Guiding Team
1. Create a Sense of Shared Need & Urgency
Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press
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© 2013 ViTAL Economy, Inc.
Key Issues Facing U.S. Economy
•
•
•
•
•
Significant changes in economic structure
•
Increased government intervention and control in private sector (Banking,
Insurance, Auto industries)
•
Banking failures, & auto industry restructuring
•
Instability and volatility in financial markets world-wide
Awareness and focus on local and global environmental issues
•
Natural resources and environment formerly regarded as exploitable
resources and receptors of production stream waste residue respectively.
•
Now the same resources are recognized as important resources to be wisely
used and held in stewardship for future generations.
•
Increased consciousness of transportation costs and environmental impacts
shipping goods long distances.
•
There is significant interest and investment in “Clean Technologies.
Prevailing high unemployment
•
“Jobless Recovery” is prevailing outlook for 2010-2012
Consumer confidence and spending is still Flat
Cautious business spending patterns
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© 2013 ViTAL Economy, Inc.
Vision → Objectives → Goals → Assets → Strategies → Actions
Objectives & Goal Metrics:
•
Increase the Average Wage and proportion of personal income from earned income
•
•
•
•
Improve Wage Parity with surrounding counties (the labor shed)
•
↑ Increase Median Annual Income for Associates/Some College to $32,000
•
↑ Increase Median Annual Income for Bachelors Degree to $39,000
Increase the size and quality of the workforce
•
↑ Increase 20-44 employment by 20% in five years
•
↑ Increase Associate Degrees/Some College and Technical Certificates among
18-24 year old age bracket from 38% to 47%
Increase population proportion of 25-44 year olds
•
•
↑ Ratio Net Earned Income / Total Income from .566 to .65
↑ Increase the absolute number of people in 25-44 age bracket by 20% in five
years
Create an entrepreneurial environment
•
Define and implement an Innovation Ecosystem within 3 years
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© 2013 ViTAL Economy, Inc.
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© 2013 ViTAL Economy, Inc.