bo beaulieu & michael wilcox october 29, 2014 transforming your local & regional economy...

Bo Beaulieu & Michael Wilcox

October 29, 2014

Transforming Your Local & Regional EconomyPerry County & Its Region

Special Thanks

• Economic Development Administration, Chicago Regional Office

• Kim Howard, Southwest ISBDC

• Perry County Development Corporation

• Our Purdue Extension Colleagues

Our Focus Today• Examine the economic resources and

opportunities that exist in your county/region (but are often overlooked)

o The stages of your local establishmentso Regional competitive assets

• Highlight entrepreneurship as an important aspect of your economic development strategies.

• Identify ways you can cultivate entrepreneurship in your county & region

Something to Ponder

The research on job creation has frequently found that most jobs are created from existing

employers, yet many local economic development organizations continue to emphasize new industry recruitment.

Daniel DavisThe Federal Reserve Bank of St. Louis. May 2011

ESTABLISHMENTS IN PERRY COUNTY

6Source: National Establishment Time Series (NETS) – 2011 Database

An establishment is a physical business location.

Branches, standalones and headquarters are all considered

types of establishments.

Definition of Company Stages0 12 3

4

Self-employed

2-9 employees

10-99employees

100-499employees

500+employees

National Establishment Time Series, 2012

2012 Establishments in Perry County, IndianaEstablishments Proportion of Total

Total 814 100.0% Stage 1 703 86.4%Stage 2 100 12.3%Stage 3 11 1.4%

Stage 4 * *Employment

Total 6,542 100.0%Stage 1 2,254 34.5%Stage 2 2,376 36.3%Stage 3 1,912 29.2%

Stage 4 * *Sales ($)

Total 595,270,331 100.0%

Stage 1 161,337,489 27.1%

Stage 2 211,595,242 35.5%Stage 3 222,337,600 37.4%

Stage 4 * ** According to NETS, Perry County does not have a Stage 4 (500+) establishment, but Reference USA says

that Waupaca Foundry Inc. is the major employer with 700 jobs* IN DWD also says that Waupaca Foundry Inc. is the major employer in Perry County

THE REGION’S COMMUTE SHED AND LABOR SHED

Variable Count, 2011 % ShareEmployed in Perry County 5,559 100• Employed in county but living outside 2,515 44.3• Employed and living in county 3,044 55.7

Living in Perry County 9,233 100• Living in county but employed outside 6,189 69.5• Living and employed in county 3,044 30.5

• Perry County is mostly a resident county and not an employment center given that a larger number of workers are commuting out of Perry County to work than are coming into the county for work purposes.

• Net commuting (In- commuters minus out- commuters) is negative in the county with a loss of 3,674 commuters.

• Perry County residents are commuting to surrounding counties in Indiana and Kentucky for purposes of securing work.

• A large number of Perry County residents commute to Evansville metropolitan area for work

• The footprint of Perry County as a workplace extends to a few adjacent counties in IN and KY.

Source: OTM, LEHD, U.S. Census Bureau; PCRD

2,515

3,044

6,189

Perry County Commute Shed (Journey to Work) Data

11

Counties Jobs Count, 2011 Share Cumulative Share

Perry County, IN 3,044 33.0% 33.0%

Dubois County, IN 1,168 12.7% 45.6%

Vanderburgh County, IN 549 5.9% 51.6%

Spencer County, IN 467 5.1% 56.6%

Hancock County, KY 378 4.1% 60.7%

Marion County, IN 304 3.3% 64.0%

Daviess County, KY 247 2.7% 66.7%

Posey County, IN 230 2.5% 69.2%

Knox County, IN 189 2.0% 71.2%

Warrick County, IN 154 1.7% 72.9%

All Other Locations 2,503 27.1% 100.0%

• Perry’s commute shed touches major metropolitan area of Evansville (Vanderburgh County)

• Perry County sends over 600 workers to KY counties• Strong economic ties to Dubois County (with 1,100 residents or 13% employed there)


Perry County as a Home (Commute shed)

12

Counties Jobs Count, 2011 Share Cumulative Share

Perry County, IN 3,044 54.8% 54.8%

Spencer County, IN 499 9.0% 63.7%

Hancock County, KY 311 5.6% 69.3%

Daviess County, KY 243 4.4% 73.7%

Dubois County, IN 157 2.8% 76.5%

Vanderburgh County, IN 142 2.6% 79.1%

Warrick County, IN 70 1.3% 80.3%

Marion County, IN 60 1.1% 81.4%

Gibson County, IN 43 0.8% 82.2%

Pike County, IN 40 0.7% 82.9%

All Other Locations 950 17.1% 100.0%

• Perry’s labor shed extends to adjacent counties in KY• A labor shed is a region from where the labor force is drawn


Perry County as a Workplace (Labor shed)

INDUSTRY CLUSTER ANALYSIS: THE PERRY COUNTY REGION

The region includes the following counties:•Dubois, Perry, and Spencer in Indiana•Daviess and Hancock in Kentucky

Source: RDM, PCRD & ESRI

Data Source: EMSI 2013.4 (QCEW Employees, Non-QCEW Employees, and Self-Employed are selected) & Population estimates 2013, Census

Full-time jobs are accounted for.

Economic Attributes of the Perry County Region

Note: Label includes cluster name, LQ 2012 and Employment 2012


Data Source: EMSI 2013.4, industry cluster definitions by PCRD

Mature Star

Transforming Emerging

Perry County Region

7

6

3

2

1

0

-1

Mature Star

Transforming Emerging

Note: Label includes cluster name, LQ 2012 and Employment 2012



Perry County Region

3

2

1

0

15

P e r c e n t G r o w t h i n S p e c i a l i z a t i o nP e r c e n t G r o w t h i n S p e c i a l i z a t i o n

Transforming

StarsMaturing

Emerging

Perry County Region, Industry Cluster Analysis, 2007-2012

• Arts, Entertainment, Recreation & Visitor Industries

• Business & Financial Services• Education & Knowledge Creation• IT & Telecommunications• Printing & Publishing• Manufacturing Sub-Clusters• Fabricated Metal Product Mfg• Machinery Mfg

• Chemicals & Chemical Based Products

• Advanced Materials• Agribusiness, Food Prod & Technology• Apparel & Textiles• Forest & Wood Products• Glass & Ceramics• Transportation & Logistics• Manufacturing Super-Cluster• Manufacturing Sub-Clusterso Computer & Electronic Prod Mfgo Primary Metal Manufacturingo Transportation Equipment Mfg

• Biomedical/Biotechnical (Life Sciences)

• Defense & Security• Energy (Fossil & Renewable)• Mining• Manufacturing Sub-Cluster

• Electric. Equip, App & Comp Mfg


Star clusters

Perry County Region, Industry Clusters, 2012

Data Source: EMSI 2013.4, industry cluster definitions by PCRDFull-time jobs are accounted for.Red numbers in parenthesis are negatives

Cluster Name 2012 Jobs 2012 LQ Percent Change LQ, 2007-2012 2012 EPW

Competitive Effect(Shift-share),

2007-2012Forest&WoodProducts 9,327 6.25 12% $54,001 1,281ManufacturingSuper-cluster 6,064 1.88 8% $64,989 566Biomedical/Biotechnical(LifeSciences) 5,944 0.69 (14%) $40,776 (713)Agribusiness,FoodProcessing&Technology 5,389 2.24 11% $47,726 668AdvancedMaterials 5,336 1.89 2% $64,757 209Business&FinancialServices 4,459 0.50 24% $51,804 1,136Energy(Fossil&Renewable) 3,843 0.75 (8%) $67,264 (222)Transportation&Logistics 3,366 1.15 2% $61,510 112Arts,Entertainment,Recreation&VisitorIndustries 2,374 0.68 3% $17,586 106PrimaryMetalManufacturing 2,066 16.00 4% $86,286 121TransportationEquipmentManufacturing 2,001 2.48 5% $56,249 139Defense&Security 1,974 0.44 (16%) $38,416 (272)Chemicals&ChemicalBasedProducts 1,904 1.51 (6%) $53,916 (82)InformationTechnology&Telecommunications 1,833 0.43 3% $54,964 85Education&KnowledgeCreation 1,530 0.69 21% $31,887 336Apparel&Textiles 1,138 2.23 24% $48,145 291FabricatedMetalProductManufacturing 819 0.99 8% $52,074 81Computer&ElectronicProductManufacturing 819 1.22 34% $49,143 284Printing&Publishing 604 0.45 15% $39,111 97Glass&Ceramics 382 2.51 59% $44,459 227MachineryManufacturing 310 0.55 2% $58,048 12Mining 178 0.61 (46%) $67,082 (77)ElectricalEquipment,Appliance&ComponentMfg. 49 0.21 (60%) $50,415 (28)

Note : ** presents “Star clusters in 2012”Data Source: EMSI 2013.4, industry cluster definitions by PCRDFull-time jobs are accounted for.

Perry County Region, Regional Expenditures & Leakages, 2012

PCRD’s Major Programs

Natural & Environmental Resources

Steve Yoder

Economic Developmen

t

Heather StrohmKris Parker

Leadership & Civic

Engagement

Tanya Hall

Economic Analysis

Tamara Ogle

Local Government

NEW REGIONAL CD EDUCATORS

Opportunities How regional educators can help

Assist educators in understanding data on their communities Explore feasibility of an economic impact analysis and/or other analytical tools

Assist in understanding local government structures, taxes and the budget process Help you plan/teach local government programs to elected officials, government boards and

community leaders

Help you to plan a Beginner’s Guide to Grant Writing workshop Help facilitate a community decision-making process Help present a workshop on a leadership topic

Tanya Hall

Tamara Ogle

Kris Parker

Opportunities How regional educators can help

Assist business and entrepreneurial networks in establishing strategic and business plans in collaboration with existing business resources.

Assist in identifying business assets and opportunities for improvement with respect to business attraction, retention and creation.

Help plan programs related to the physical development of communities and their natural resources.

Help plan trainings for non-profit board members.

Heather Strohm

Steve Yoder

NETS Dynamics – Perry Co. - 07-13Establishments 2007 2013 2013 % TOTAL 07-13 %CHANGETotal 1,175 1,102 100% -6.2%Self employed (1) 417 301 27% -27.8%Stage 1 (2-9) 642 664 60% 3.4%Stage 2 (10-99) 104 125 11% 20.2%Stage 3 (100-499) 12 12 1% 0.0%Stage 4 (500+) - - - -Jobs 2007 2013 2013 % TOTAL 07-13 %CHANGETotal 6,941 7,459 100% 7.5%Self employed (1) 417 301 4% -27.8%Stage 1 (2-9) 2,107 2,173 29% 3.1%Stage 2 (10-99) 2,441 2,889 39% 18.4%Stage 3 (100-499) 1,976 2,096 28% 6.1%Stage 4 (500+) - - - -Sales 2007 2013 2013 % TOTAL 07-13 %CHANGETotal 595,316,993 493,146,621 100% -17.2%Self employed (1) 27,746,500 18,853,794 4% -32.0%Stage 1 (2-9) 158,488,352 126,985,225 26% -19.9%Stage 2 (10-99) 201,404,541 186,731,202 38% -7.3%Stage 3 (100-499) 207,677,600 160,576,400 33% -22.7%Stage 4 (500+) - - - -

Net New Jobs in Perry County

Expansions = Expand - Contract

Startups = Expansion Startups + New Startups - Close

Relocation = Move In - Move Out

To assist targeted communities in Indiana as they transform their local economies through the development of key components required for

entrepreneurship and small business development.

Purpose

Creating a Regional Entrepreneurial System Together

Three ways in which entrepreneurship plays a critical role in economic development…

Entrepreneurship – the link between assets and finding new sources of competitive advantage and economic opportunity

Entrepreneurs – recognize opportunity and bring together resources to turn opportunity into a viable business venture

Entrepreneurial communities and leaders – understand their assets and mobilize to employ these assets through entrepreneurship development

Relationships and Roles

Entrepreneurs and small business owners play an important role in local economic development, specifically…

As Employers: creating new jobs and playing a significant role in hiring part-time workers and new workforce entrants

As Tax Revenue Generators: broadening tax base, thus generating greater property and income tax revenues

As Economic Supporters: buying and supplying local products and services. Income generated typically not exported out of local community

Entrepreneurship as a Development Strategy

and…

As Property Owners and Renters: leasing space from local property owners and filling vacant storefronts downtown

As Providers of Economic Stability: small homegrown firms are, by definition, owned and operated by people who have a personal stake in the community and are more likely to remain

As Providers of Economic Diversity: entrepreneurs diversify the mix of business types and sectors which contributes to economic resiliency

Entrepreneurship as a Development Strategy (cntd)

Interconnectedness between rural and urban– Regionalism = rural and urban linkages

– Systems = rural and urban resources

– Assets = unique rural and urban strengths and markets

– Ensure that urban and rural neighbors serve their region as equal partners

The New Paradigm Needs to Embody Four Policy Principles

• More entrepreneurs– Increase the numbers

• Stronger entrepreneurs– Increase the survival rate

• More high growth entrepreneurs– Increase the number that create jobs and wealth

Policy Goals

These policy goals translate into program goals…•More entrepreneurs in the pipeline•More entrepreneurs staying in their community•Better informed entrepreneurs•Better skilled entrepreneurs•More job creating entrepreneurs•Greater business productivity

Program Goals

Entrepreneurship and Economic Development Research suggests that:

• Growing firms from “within” is a more cost effective means of creating profit centers, tax base and employment per job created.

• Small, home grown firms play a significant role in job creation in both urban and rural areas.

• Communities should take a balanced approach to economic development and complement recruitment, business retention and expansion activities.

• Your community is what brings it all together!

“An effective entrepreneurship development system integrates a wide range of programs and tailors products and services to meet the diverse needs of entrepreneurs. It should be comprehensive, flexible, culturally sensitive, and integrated, and should require providers to collaborate rather than operate independently or in isolation”

- Dabson, 2005

An Entrepreneurial System

• Supportive environment: creating community and civic environments that celebrate and support entrepreneurs.

• Be Entrepreneur-focused• Create ‘No wrong door’ • Celebrate entrepreneurs

Component #1: Supportive Environment

Supportive Environment

Entrepreneur Networks: facilitating opportunities for informal gatherings of entrepreneurs to share experiences and information.

•Facilitate, but don’t lead•Networks should be “by and for” entrepreneurs

Component #2: Entrepreneur Networks

Entrepreneur Networks

Training & Technical Assistance: the creation of systems of advice, expertise and training appropriate to the needs of entrepreneurs – can be public, private, educational or nonprofit agencies.

•ID your community’s “coaches”•Help entrepreneurs navigate the system

Component #3: Training & Technical Assistance

Training and Technical

Assistance

Access to Capital: in the form most useful for the stage of business development

•Connect entrepreneurs to local lenders– Increase the banking IQ of local entrepreneurs– Increase the business IQ of local bankers

•Leverage regional and state funding•Incentives and assets

Component #4: Access to Capital

Access to Capital

Youth Entrepreneurship: programs to excite young people in schools, community colleges and universities about the possibilities of creating their own businesses

•Build a pipeline of future entrepreneurs•Engage young people

Component #5: Youth Entrepreneurship

Youth Entrepreneurship

WHERE DO WE GO FROM HERE?Creating an Entrepreneurial System in the Perry County Region

According to Markley et al. (2005), communities that are “ready” have:•Particular capacities in human, financial, and physical infrastructure•A supportive business/entrepreneurial climate•A strong self-image with positive citizen and community attitudes•Open and creative community leadership, or leadership environment, that encourages and nurtures emerging leaders

Entrepreneurial Community Readiness

Community Readiness Questionnaire

The Results

The Process

Create a list of institutions and associations that can assist us in the creation of a regional entrepreneurial system…

Who else?

Who?

• Purdue Extension• Purdue Center for Regional Development• Local Initiatives Support Corporation• Chambers• LEDOs• Community foundation• Utility companies• Local governments• Revolving loan funds• United Way• Producer groups• Farm Bureau / Advocacy groups• Elevate ventures• 4H / FFA• Economic Growth Council

• Variety of local “Partners”• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________

Who?

Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

Thank you!

Bo Beaulieu and Michael [email protected]@purdue.edu

October 29, 2014Presented in Tell City, IN at theTransforming Your Local Economy – Perry CountyHosted by the Southwest ISBDC

To Learn More about the Purdue Center for Regional Development,

check our new website:

https://pcrd.purdue.edu/

bo beaulieu & michael wilcox october 29, 2014 transforming your local & regional economy...

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