Overcoming RURAL Economic Development Challenges Topics Strategic - - PowerPoint PPT Presentation

Overcoming RURAL Economic Development Challenges

Strategic Action Planning Workforce Development Housing

Topics

Broadband / Infrastructure Business Attraction Business Retention & Expansion

Strategic Action Planning

A tool for…

 Clarifying direction  Tackling BIG goals by aligning many smaller efforts  Making resource allocation decisions

It is…

 Continually evolving  Action-inducing  Broadly accessible

What is a Strategic Action Plan

× A lengthy book collecting dust on a shelf × A collection of isolated components × A once every five years process × A report prepared by “someone else” × Well crafted but overly complex language void of real meaning

What it is NOT

Data & Information Gathering SWOT Vision Goals Measurable Objectives Specific Initiatives Evaluation Metrics

Process

Prioritize & Partner

Lead Partner Support/ Participate Delegate

CEDS Coordination

• Comprehensive Economic Development

Strategy (CEDS)

• https://eda.gov/ceds/
• Coordinate through your regional

Economic Development District

 Partners: Consider providing financial and technical support for data gathering  Rural ED Professionals: Understand active CEDS in your area (and participate in their formation!  All: Require a clear action plan and effective performance metrics for any strategic plan you participate in and/or financially support

Workforce Development

Case Studies

• Welding Training Program
• Roundtable Feedback
• Project Response

Housing

Common “Triggers”

• Talent Attraction Efforts (Population Growth Challenge)
• We do not have housing options for people considering

moving to our community.

• Business Retention & Expansion Efforts
• This is adding to our current difficulty in finding people.
• Our long-distance commuters are at risk of accepting

positions closer to their home.

Common Drivers of the Challenge

• Changes in housing supply cycle
• More people aging in homes longer
• Shortage of home builders & construction labor
• Focusing more on “safer bets”
• Difficulty finding subcontractors and labor, intensified in rural
• Difficulties in cost model
• Land developer: “Cost causer is cost payer” for infrastructure

= higher lot prices

• Home developer: Cannot get proper lot prices for workforce

and starter housing + construction cost are high

Best Practices Observed

• Housing roundtables
• Housing supply/demand studies
• New housing incentives
• Redevelopment & demolition initiatives

Broadband & Infrastructure

Case Studies

• Broadband case study
• Wastewater case study
• Business attraction case study

Business Attraction

Know Your Team & Your Role

• Marketing
• Lead Generation
• Project Management
• Property database & information
• Site visit host team
• Incentive negotiation

Don’t exchange business cards on the battlefield!

Marketing & Lead Generation

Regional, regional, regional, …

• The client views you as a region
• Your successes and failures

are shared as a region

• Competition is intense –

you must partner!

Project Management

• Know your team in advance
• Know your “product” in advance
• Know your incentives and

incentives process in advance

• Do not underestimate the

importance of the emotional side of site selection!

A Quick Word on Site Development

• “We Can’t Afford It!”

 Site control  Infrastructure  Spec buildings  Report the unique data available to you

Business Retention & Expansion

Can you guess the top 2 most common reasons a company contacts me about making a move?

#1. “We Cannot Find Employees!”

Questions We Ask Initially About the company…

• Are you competitive as an employer?
• Do you have a poor reputation as an employer?
• Are you recruiting from the right places?

About the region…

• Current and trending quantity, quality, and cost of labor

Are you aware of the issue before they call us? Are you conducting compensation surveys? (data not strong in rural areas)

#2. “We need new/more space.”

Common Triggers

• We are out of space in our building
• We are not able to expand our building
• Just purchased a new piece of equipment and the ceiling height

doesn’t work

• Our lease is expiring
• If we are going to have to move 5 miles, we may as well consider

moving 50+ to find the “right” location Do you know who is land-locked? Who has a lease expiring? Who is in an outdated building with low ceiling heights?

Thank you!

Josh Beck Partner Location Strategies

816-743-7700

jbeck@mnlocationstrategies.com

www.marksnelsoncpa.com