Team NEO

Buckingham, Doolittle & BurroughsPresentation

November 5, 2012

The NEO “System”: Metro and Regional EDOs

Enhance NEO’s competitive advantage

Build collaborationOptimize funding for key economic development effortsAttract new businessesLeverage state economic development programs

The “New” Team NEO Economic Development Hub for NEO

Regional Economic Development Strategy and Funding Protocols

Business Attraction & Regional Marketing

Reg’l Business DevJobsOhio Linkage

Build EDOCollaboration

1

2 3 4

Functions

Purpose

4

Partners/Funders: The Greater Team

--Marketing-Business Attraction--Business Growth. Competitiveness--Tech Commercialization, Start-ups--Infrastructure Loans and Grants--Close the Deal” Funds

1. Innovation & Investment(Third Frontier, Edison Institutes, etc.)

2. Small & Minority Business and Export Assistance Office

3. Tax Credits, Servicing and Workforce Development Office

4. Urban and Site Development Office5. Housing and Partnerships Office6. Energy Office7. Community Services Office8. Governor’s Office of Appalachia

Outsource Loan Servicing (possible 2012)

JobsOhio Regional Network

Tourism Ohio (2012)

Ohio Business Development

Coalition

Contract for Economic

Development

JobsOhio Network

35-40% of Ohio’s Key DemographicsStrengths & Challenges

• 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 ofRegional Partners

• 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

Ashtabula Growth Partnership

Columbiana County Port Authority

Erie Economic Development Corporation

Greater Akron Chamber

Greater Cleveland Partnership

Geauga Growth Partnership

Huron County Economic Development

Center

Lake County Economic Development

Center

Medina County Economic Development

Corporation

Portage Development Board

Richland Development Corporation

Stark Development Board

Tuscarawas County Community

Improvement Corp.

Team Lorain County

Wayne Economic Development Council

Youngstown-Warren Regional Chamber

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 Payroll NEO -36% of Ohio Total

New JobsNEO - 36% of Ohio Total

Business Attraction:

How we SELL!

Team NEO Value to Attraction Clients• One Stop

– 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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Generate Impressions

NEO Economic Development System Executes Regionwide

CloseDeal

# qualified leads # short list $Payroll

Metrics

Qualify Leads

Qualify NEO

Negotiate Deal

Increasing Local Role

Lead Generation Channels: Focus2007 2008 2009 2010 2011 2012

Site Selectors

In Region Referrals

State of OH

Cardiovas-cular

Medical Devices

Minority Business

International

Energy

Core Ind.

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

Close to Major US and Canadian Markets

Large Talent Pool25+ 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

Timken, Canton $225 Million

Chesapeake Energy, M3 Midstream, & EV Energy Partners, Columbiana

County $900 million

Halliburton – Muskingum County$150 million and 300 jobs

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MarkWest – Harrison & Monroe Counties$500 million and

700+ construction jobs

Exterran – Columbiana County$13 million and about 100 jobs

Baker Hughes – Stark County$64 million and 700 jobs

Select Energy Services – Carroll County

$10 million and 185 jobs 

$2.75 BILLION and Counting – NOT Including Lease and

Royalty Payments, Operations, etc.

Team NEO: Creating new jobs NOW

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Since 2007, Team NEO has helped to attract:

63 new companies

5,900 new jobs

$214M+ direct annual payroll

$396M+ regional annual payroll benefit

TEAM Wins – Starting 2007• 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

• 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

• 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

• 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

1992

1993

3469

9

3506

4

3543

0

3579

5

3616

0

3652

5

3689

1

3725

6

3762

1

3798

6

3835

2

3871

7

3908

2

3944

7

3981

3

4017

8

4054

3

4090

8

4127

4

4163

9

4200

4

4236

9

4273

5

4310

0

4346

5

4383

0$130,000

$140,000

$150,000

$160,000

$170,000

$180,000

$190,000

$200,000

$210,000

$220,000

$230,000

.7%

6.2%

4.1%

3.4%

5.2%2.8%

1.3%1.9%

-2.4%1.5%

1.3%2.1%0.4%

-1.4%.1%

-1.4%

-5.1%2.3%1.1%

2.1%

3.0%

3.8%

3.3%2.5%

1.5%1.4%

1.3%

NEO 18 County Real Regional Gross Product (GRP): 1992 - 2011, Average Annual Increase 1.9%

Year

Mil

lio

ns

2010

$

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