october 6, 2009

© Copyright 2009, NorthStar Economics, Inc. All rights reserved. NORTHWOODS ECONOMIC SUMMIT 2009

October 6, 2009

REGIONAL INNOVATION GRANT:ECONOMIC OPPORTUNITY STUDY

FOR THEMICHIGAN UPPER PENINSULA / WISCONSIN BORDER REGION


Background

The UP/WI border region is in economic transition

Several challenges in the region: Aging population Out-migration; “brain drain” Hurdles to mining and logging Lack of diversification of economy Lack of good job opportunities

Regional Innovation Grant obtained to conduct a study and formulate a regional plan

2

Background

Methodology

Stakeholder Input

Subregional Highlights

Strategies

Implementation

Conclusions


Project Timeline

3

September 2008 - Contract awarded

October 2008 - Kickoff meeting

October 2008-April 2009 - Gather economic/ demographic data; review prior studies

October 2008-April 2009 - Online survey

December 2008-January 2009 - Focus groups

December 2008-June 2009 - Individual interviews conducted in person and by phone

May 2009 - Formulate strategies; Draft report

May-June 2009 - Steering committee and subcommittee meetings; obtain feedback

June 2009 - Revise and edit report

July 2009 - Finalize report

September 2009 - Rollout

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Selected Background Data

Jobs and Earnings by Sector Educational Attainment

Per Capita Income

Employment

4

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


JOBS AND EARNINGS BY INDUSTRY

5

Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Highest Level Attained by Percentage of Regional Population

2009High

School Diploma

SomeCollege

Associate Degree

BachelorsDegree or

Higher

GraduateDegree

United States 28% 22% 6% 27% 10%

Wisconsin37% 20% 7% 23% 6%

Michigan31% 24% 7% 23% 9%

UP/WI Border Region

39% 23% 7% 18% 6%

Source: EMSI Complete Employment - 2nd Quarter 2009 v. 2

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EDUCATIONAL ATTAINMENTOF THE POPULATION AGE 25 OR OLDER

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Source: U.S. Department of Commerce, Bureau of Economic Analysis

PER CAPITA INCOME

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Per Capita Income 1998-2007

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Source: U.S. Census Bureau, County Business Patterns

TOTAL EMPLOYMENT

8

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Methodology Previous studies reviewed

Economic/demographic data gathered Demographic profiles Business and economic profiles Region-wide and sub-regional data

Stakeholder input obtained Focus group interviews

Individual interviews

Online survey – Survey Monkey

Data analyzed

Strategies formulated

Implementation steps created

9

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions

© Copyright 2009, NorthStar Economics, Inc. All rights reserved. NORTHWOODS ECONOMIC SUMMIT 2009 10

Over 1,600 respondents from throughout the UP/WI border region took the survey.

Only 17% feel that the regional economy is heading in the right direction

57% feel that the region is a good place to do business

70% feel that there is an adequate labor force/ worker pool available in the region

Nearly 3/4 praise the work ethic in the region

SURVEY RESPONSESHIGHLIGHTS

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Industries most often cited as potentially important to the future economy:

Health Care

Tourism and Hospitality

Education

Forestry

Energy/Alternative Energy/Biofuels

Manufacturing/Heavy Industry

Mining

SURVEY RESPONSESHIGHLIGHTS

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


SUB-REGIONAL HIGHLIGHTS

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions

South Central sub-region includes Wisconsin’sFlorence and Marinette Counties.


Strengths frequently cited: Workforce - abundant, skilled, educated Natural resources - natural beauty, water, forestry Recreation and tourism - outdoor activities, water

Weaknesses frequently cited: Lack of diversification - not enough blue collar Taxes - corporate and personal rates too high Government/politics - no investment in the region

Threats frequently cited: Business climate - plant closings, manufacturing loss Workforce - high unemployment, loss of young workers Health care - rising costs, potential decline in service

Opportunities frequently cited: Business attraction - broaden industry base Educational opportunities - expand courses and training Natural resources - logging, mining, forest products

FOCUS GROUP INTERVIEWSS. CENTRAL SUB-REGION HIGHLIGHTS

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


PERSPECTIVE

A Brief History ofEconomic Development

200 Years Ago → Rivers and water

Timeframe: Development driven by:

100 Years Ago → Railroads

50 Years Ago → Interstate highways

Today → Knowledge networks

14


Can we shape a regionalplan that …………

Takes into account the independence of the UP/WI Border region

Provides high level networking and intelligence to help local/county/regional efforts

Provides a platform for large scale projects, ideas, and grants

Moves the region from a cyclical, resource-dependent economy towarda new, more stable economy

15

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


REGIONAL COMMUTING PATTERNS

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


REGIONAL ORGANIZATION AND THINKING

MN

IA

WI

MI

UP/WI Border Region

17


THE REGIONAL ADVANTAGE

Keweenaw

Marquette Gogebic

Florence

Marinette Men

om

inee

Iron

Ho

ug

hto

n

Ontonagon

Chippewa

Mackinac

Luce

Schoolcraft Alger

Delta

Dic

kins

on

Baraga

17 Counties4 Sub-Regions

North Central

West East

South Central

1 Region

1 Unifying Vision for Economic Prosperity

18

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Higher Education

Why do this?

Average Annual Earnings by Educational Attainment

19

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Higher Education

Support the region’s educational institutions inbuilding programs and enrollment

Build on the growing higher education researchbase to develop additional R&D programs

20

Build on the higher education cluster inthe region; Expand enrollment, research

and entrepreneurial activity; Raise educational attainment of the workforce

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Educationand Workforce Training

Why do this?

21

U.S. Educational Attainment 1960-2007

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Educationand Workforce Training

Work to raise overall educational attainment in the region

Build on existing programs to increase the experientialand entrepreneurial opportunities for K-12 students

Build on existing regional workforce training programs to train or retrain workers in manufacturing, health care, and specific industry clusters such as forest products, digital communications, entrepreneurship and shipbuilding

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Increase the skill and education of the regional workforce to increase competitiveness

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: BusinessGrowth and Development

Why do this?

0%

-1.2%

5.5%

11%

23

Source: U.S. Census Bureau; County Business Patterns

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Work to increase the growth of existing businessesand new businesses through the use of SmartZonesand the Wisconsin Entrepreneurs Network

Establish an international business network andeconomic development strategy

Establish a network of incubators and business parks

Establish a region-wide high-tech business plancompetition

24

Work to grow existing businesses and new businesses; Establish a region-wide culture

of collaboration and innovation to attract entrepreneurs and existing business investment

STRATEGY: BusinessGrowth and Development

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Tourism and Seasonal/

2nd Home Residents

Why do this?WildernessAreasin the

UP/WI Border Regionby Type

25


Develop and implement a coordinated tourismcampaign for the entire UP/WI border region

Determine need for further Great Lakes Portdevelopment

Aggressively promote winter sports in the region

Develop a region-wide recreational trail network

Explore programs to capture and utilize the talentof seasonal and retired residents

26

Have the region become a major tourismdestination and 2nd place of residence

Tactics:

STRATEGY: Tourism and Seasonal/

2nd Home Residents Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Infrastructure

Why do this?

Cellular Telephone “Dead Zones” by Carrier27

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Infrastructure

Expand broadband and cell phone penetrationacross the region

Develop a comprehensive highway plan for the region

Develop a comprehensive rail service plan for theregion

Develop a long-term air service strategy for the region

28

Develop a 21st century vision for broadband/cellular service, highways, rail service

and air service

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Natural Resources

Why do this?

Forest Map of Wisconsin and Michigan by Type 29

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Natural Resources

Establish a Northern Products cluster group Establish a biomass/biofuel energy consortium Continue exploring wind as alternative energy source Build economic growth and job/business creation

around a green waste transformation cluster Develop a business model to support value-added manufacturing

30

Continue to promote use of the region’snatural resources in an environmentallysound, safe and sustainable manner and

focus on strategies to promote value-added economic activity within the region

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Health Care

Why do this?

31

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


STRATEGY: Health Care

Explore the establishment of health care cooperatives

Enhance and expand the use of telemedicine

Explore how to retain more medical care spending thatis lost to other regions

Increase worker training to support the existing and growing health care industry in the region

32

Provide citizens of the region with thehighest quality, affordable, convenient

health care services available

Tactics:

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


ImplementationTop Priorities:

Higher education focused on growing the research base, higher education enrollments, tech. transfer and spin-off opportunities from research and other activities

Biofuels/Biomass consortium

Workforce training in paper and forest products, shipbuilding, digital technologyand entrepreneurship

New Economy infrastructure - broadband; cell service; region-wide communication network

33

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


ImplementationHigher Education Map

Higher Education

Related Research Programs in the

Region

NearbyUniversities

Finlandia University

Community/Tribal Colleges

Michigan Technological

University

Northern Michigan University

Lake Superior State University

U.S. Forest Service-HoughtonNat’l Ecological Observation Network

Marinette Marine Hull Lift Research

UW-Stevens Point

UW-Green Bay

Michigan State University

International BusinessFinnish Connections

Paper Science & EngineeringBioFuel Research

Environmental Science & PolicyWaste Transformation

Great Lakes Bioenergy Research Center

Forestry Program

Bay CollegeBay Mills Community College

Gogebic Community College Prototype Development Ctr Environmental Testing Lab Robotics

Wireless Technology

Research ProgramEngineering ProgramsSmartZone Biofuel Research/Projects IT-IBM Forestry Program

Digital Television

ITNetwork SecurityNetwork EngineeringNetwork Maintenance & Technology

WiMax Project

Training EnterpriseDigital Staffing

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Int’l School of Art & Design College of Health Sciences

Great Lakes Research Center

SmartZone Keweenaw Bay Ojibwa C. College UW-Marinette

Great Lakes Composite Institute

Capacity Building Obama Admin. Plan

Workforce Training Partnerships


ImplementationWorkforce Training Map

Workforce Training

Entrepreneurship Training Digital

Technology

Forestry/Paper

MI SBTDC Workshops

NMU, LSSU, MTU Entrepreneurial Curricula and Resources

Michigan Forest & TimberRegional Skills Alliance

K-12 Educators Outreach

Marinette Marine

UP Regional Industrial Manufacturing Alliance

NWTC Boat/Ship Building Excellence Center

NMU Digital TV Training Programs and Capacity

FincantieriExpansion Plans

Ship Building

35


FINCANTIERI WORKFORCEIN THE REGION

36

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


The study is done!

The challenge lies ahead!

So what’s next?

37

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


Leadership is the key to getting something done.

Look to leadership in theUP/WI border region from:

Private Sector UPEDA Operation Action UP Workforce Boards Universities/Colleges RPCs Chambers and EDCs

38

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


MOVING AHEAD

1. Focus your efforts - do a few things well

2. Build on current efforts

3. Link & partner with other regional initiatives4. Leverage the 2 state advantage

39

Background

Methodology

Stakeholder Input


Strategies

Implementation

Conclusions


David J. Ward, Ph.D., CEO Office Phone: (608) 441-8060 Mobile: (608) 279-3393 Fax: (608) 441-8064 E-Mail: [email protected] Web: www.northstareconomics.com

october 6, 2009

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