Team NEO
Buckingham, Doolittle & Burroughs
Presentation
November 5, 2012
The NEO “System”: Metro and Regional EDOs
The “New” Team NEO
Economic Development Hub for NEO
Purpose
Enhance NEO’s competitive advantage
Build collaboration
Optimize funding for key economic development efforts
Attract new businesses
Leverage state economic development programs
Functions
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Regional Economic Development Strategy and Funding Protocols
Business Attraction
& Regional Marketing
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Reg’l Business Dev
JobsOhio Linkage
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Build EDO
Collaboration
Partners/Funders: The Greater Team
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JobsOhio
Regional
Network
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Innovation & Investment
(Third Frontier, Edison Institutes, etc.)
Small & Minority Business and Export
Assistance Office
Tax Credits, Servicing and Workforce
Development Office
Urban and Site Development Office
Housing and Partnerships Office
Energy Office
Community Services Office
Governor’s Office of Appalachia
Contract for
Economic
Development
Outsource
Loan Servicing
(possible 2012)
--Marketing-Business Attraction
--Business Growth. Competitiveness
--Tech Commercialization, Start-ups
--Infrastructure Loans and Grants
--Close the Deal” Funds
Tourism Ohio
(2012)
Ohio Business
Development
Coalition
JobsOhio Network
35-40% of Ohio’s Key Demographics
Strengths & Challenges
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37% of Population and Employment
37% of Gross Regional Product
40% of Business Establishments
39% of Jobs Lost 2006-2010
41% of Ohio’s Minorities
51% of Competitive 3rd Frontier Awards ’08-’10
Generally 2X Central Ohio, 3X Smaller Regions
We Know NEO Must Perform for Ohio to Win.
JobsOhio Expectations of
Regional Partners
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Facilitate regional strategy
Grow and expand companies in region
Attract new companies to the region
Advance technology commercialization
Stimulate entrepreneurship
Establish metrics and reporting system
---Implemented via our Regional Network
Regional Network Partners
Ashland County Economic Development Medina County Economic Development
Ashtabula Growth Partnership
Corporation
Columbiana County Port Authority
Portage Development Board
Erie Economic Development Corporation Richland Development Corporation
Greater Akron Chamber
Stark Development Board
Greater Cleveland Partnership
Tuscarawas County Community
Geauga Growth Partnership
Improvement Corp.
Huron County Economic Development
Team Lorain County
Center
Wayne Economic Development Council
Lake County Economic Development
Youngstown-Warren Regional Chamber
Center
Regional Business Development:
Helping YOUR Clients
Grow in NEOhio!
Team NEO Regional Business Development
1. Serves as JobsOhio sales force, initial client service agent
for new capital investment/job creation projects
2. Coordinates region-wide retention and expansion program
3. Regional project managers trained and certified to advise
companies on all State of Ohio and JobsOhio program
4. Connect every company in NEOhio to ALL regional assets
Common State Tools Used through
Regional Business Development
-Tax Credits
• Job Creation Tax Credit
– Grants
• Workforce Guarantee
• Incumbent Worker Voucher Program (new program through
DSA, not JobsOhio)
• 629 Infrastructure
• Clean Ohio
– Low Interest Financing
• 166 Loan Program
• Ohio Enterprise Bond Fund
• R&D Loan Fund (with associated tax credit)
• Innovation Ohio Loan Fund
General Guidelines for Project
Parameters Requesting State Financial
Assistance
• JobsOhio Targeted Industries: Advanced
Manufacturing, Aerospace & Aviation, Automotive,
BioHealth, Financial Services, Energy, Polymers &
Chemicals, Food Processing
• What is the real need? Will the project be unable to
move forward without support?
• $1,000,000 +/• ROI in Year 1
• Special note regarding pre-revenue companies, retail
& developer led projects
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Current Project Activity
Current Project Activity Lead Source
Regional Wins
37 Projects in 3rd Quarter
104 Projects Year to Date
JobsOhio Network YTD: Jobs Created &
Associated Payroll
New Jobs
NEO - 36% of Ohio Total
New Payroll
NEO -36% of Ohio Total
Business Attraction:
How we SELL!
Team NEO Value to Attraction Clients
• One Stop
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– Single point of contact for Cleveland Plus
Region
– Project Dissemination & Management
No Fee Site Selection Services
– Shepherd clients through NEO Econ Dev
“Maze”
– Provide information, insights and contacts
• Workforce, Supply chain, Logistics,
Utilities, Real Estate
• Government: Taxes, Incentives
• Intro to business community and support
organizations
Confidential & Customized
– Make the business case for Cleveland Plus
– Focused on client needs…….confidentially
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NEO Economic Development System Executes Regionwide
Increasing
Local Role
Generate
Impressions
Qualify
Leads
Qualify
NEO
Negotiate
Deal
Close
Deal
Metrics
# qualified leads
20
# short list
$Payroll
Lead Generation Channels: Focus
2007
Site
Selectors
In Region
Referrals
State of OH
Cardiovascular
Medical
Devices
Minority
Business
International
Energy
Core Ind.
2008
2009
2010
2011
2012
Close to Major US and Canadian Markets
Within 500 Miles:
– 44% of US. Households
– 43% of US. Population
– 45% of US. Effective
Buying Income
– 46% of US. Earnings
– 49% of US. Manufacturing
Employment
– 56% of Fortune 500 US.
Headquarters
Large Talent Pool
25+ Colleges/Universities
• 210,000 students
• 30,000 post-secondary
degrees and certificate
awarded annually
• 1.1 million students within 150
mile radius
Estimates on the Scope of the Utica Play
Source: ODNR
Recent Industrial Investments in Utica Shale
V&M Star – Youngstown
$650 Million +
U.S. Steel, Lorain
$240 Million
MarkWest – Harrison &
Monroe Counties
$500 million and
700+ construction jobs
Timken, Canton
$225 Million
Exterran – Columbiana County
$13 million and about 100 jobs
Chesapeake Energy, M3 Midstream, &
EV Energy Partners, Columbiana
County
$900 million
Baker Hughes – Stark County
$64 million and 700 jobs
Halliburton – Muskingum County
$150 million and 300 jobs
Select Energy Services – Carroll
County
$10 million and 185 jobs
$2.75 BILLION and Counting – NOT Including Lease
and
Royalty Payments, Operations, etc.
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Team NEO: Creating new jobs NOW
Since 2007, Team NEO has helped to attract:
63 new companies
5,900 new jobs
$214M+ direct annual payroll
$396M+ regional annual payroll benefit
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TEAM Wins – Starting 2007
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A Much Better Way
Accord
Affymetrix
AIM Pharmakon
AlSher Titania
Ambaflex
Anderson-DuBose
Ardent Products
Corporation
BioForum Applied
Knowledge Center
Boneng Transmissions
Co., Ltd.
Clear Catheter
Clovervale Farms
CollectCorp
Doppstadt
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Explorys
Gamma Star
Genae
GCA Services
Green Processing
Companies
Group Travel
Planet
Hatton Design of
London
Health and Safety
Institute
Ice Cure
IPCS
JMC Steel Group
M2M Imaging
MAT Holdings
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MDG Medical Inc.
Medline
MGW
NI Medical
PCC Airfoils
Perio Corp/
Barbasol LLC
Project Glenda
Project Blend
Philips Healthcare
Proxy Biomedical
QED
Quadax
RTS Companies
Regulatory and
Quality Solutions
Röchling
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Rosetta
Sabin Robbins
SP Data
Steel Warehouse
Suturenetics, Inc.
TeleTech
ValueCare
Pharmacy
• ViewRay
• VXI
• Washita Valley
Enterprise
NEOhio Economy:
Better than We Think!
8 Qtrs of YoY Growth, Slowing?
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Recovering, but Slowly
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NEO Unemployment Lower than US
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Jobs Tracking with the US….this time
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Our Economic History
& Outlook
1992-2019
NEO GRP: Lost Decade, Growth to Resume
NEO 18 County Real Regional Gross Product (GRP):
1992 - 2011, Average Annual Increase 1.9%
$230,000
1.3%
1.4%
1.5%
2.5%
3.3%
$220,000
$210,000
3.8%
Millions 2010 $
$200,000
3.0%
2.1%0.4%
.1%
1.3%
2.1%
1.9%
-1.4%
-1.4%
1.5%
1.1%
1.3%
-2.4%
2.3%
2.8%
-5.1%
5.2%
$190,000
$180,000
$170,000
3.4%
4.1%
$160,000
$150,000
6.2%
.7%
$140,000
$130,000
Year
NEO GRP Future: +21%, Balanced Growth
Pass The Plus
• Be the Plus: Know the Facts; Be Positive
• Sell the Plus: Think of Businesses you know who
should be in the Cleveland Plus Region
• Pass the Plus: Receive Newsletter + spread good
news to employees; use info to recruit
• Partner:
– Support CLE+
– Collaborate with Team NEO on lead generation and lead
execution