Overcoming RURAL Economic Development Challenges Topics Strategic - PowerPoint PPT Presentation

Overcoming RURAL Economic Development Challenges

Topics Strategic Action Workforce Housing Planning Development Business Broadband / Business Retention & Infrastructure Attraction Expansion

Strategic Action Planning

What is a Strategic Action Plan 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 it is NOT × 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

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

Prioritize & Partner Lead Partner Support/ Delegate Participate

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 o moving to our community.  Business Retention & Expansion Efforts o This is adding to our current difficulty in finding people. o Our long-distance commuters are at risk of accepting positions closer to their home.

Common Drivers of the Challenge  Changes in housing supply cycle o More people aging in homes longer  Shortage of home builders & construction labor o Focusing more on “safer bets” o 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 Don’t exchange business cards on  Lead Generation the battlefield!  Project Management o Property database & information o Site visit host team o Incentive negotiation

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