virginia economic development partnership carving out a leadership role in economic development...

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

CARVING OUT A LEADERSHIP ROLE IN ECONOMIC DEVELOPMENT

OCTOBER 2013

Virginia EconomicDevelopment PartnershipBrent Sheffler, CEcDManaging Director, Knowledge Transfer

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP 2

OVERVIEW

• Defining Economic Development

• Introduction to VEDP

• Local Characteristics to Succeed

• Why Regionalism Matters

• Relevant Examples


DEFINING ECONOMIC DEVELOPMENT?

Economic Development is…

…the creation of wealth through the mobilization of people, materials, money and time.

It is about bringing in new dollars from outside the community or region….


WHY ECONOMIC DEVELOPMENT?

• $ for Companies-Profit and Sustainability• $ for Citizens-Quality of Life, Wealth Creation• $ for Government-needed and wanted services

for citizens


WHY ECONOMIC DEVELOPMENT?


HOW IS THIS ACCOMPLISHED?

• Primary or “Basic” Jobs– A job that produces goods or services for customers and sold outside of the

community.

• Business Attraction– Provide information and assistance to encourage “basic” employers to locate in

the community. Current and comprehensive info on:• Local demographic data• Sites and buildings, real estate, taxes and regulations• Infrastructure (both public and private)• Business assistance programs• Quality of life

– Market the community to targeted sectors.


HOW IS THIS ACCOMPLISHED?

• Business Retention & Expansion– Ensure that a positive pro-business environment exists

• Workforce readiness; available labor with skill sets and strong work ethic• Facilitate support to resources and services (proximity to colleges and universities)• Cluster or concentration of sector related business that support the supply chain.• Infrastructure to serve current and future needs• Sound fiscal and regulatory management

– minimizing costs to employers, tax management– Minimizing or mitigating barriers to growth– Incentives and incentive management

• Communications with existing business and industry. Understand what keeps them up at night.

• Quality of life

• Trade– Encouraging and facilitating the development of sales and distribution to

markets outside the region (both domestically and internationally)


WHAT IS VEDP?

VEDP Mission Statement

To enhance the quality of life and raise the standard of living for all Virginians, in collaboration with Virginia communities, through aggressive business recruitment, expansion assistance, and trade development, thereby building the tax base and creating higher income employment opportunities.

VEDP ORGANIZATIONAL STRUCTURE

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ResearchResearch

Business AttractionBusiness Attraction

Business ExpansionBusiness

Expansion

Communications & Promotions

Communications & Promotions

President & CEOPresident & CEO

Information TechnologyInformation Technology

Fiscal & Support Services

Fiscal & Support Services

HRHRGeneral Counsel & Legislation

General Counsel & Legislation

International Trade

International Trade


THE VIRGINIA ECONOMICDEVELOPMENT PARTNERSHIP

• What is VEDP– Virginia’s Business Welcome Center– Global Gateway for Virginia Companies– Ally for Virginia’s Communities– Revenue Generator for Virginia’s Citizens– Good Steward

• Services for Your Success– Business Attraction– Business Expansion– International Trade– Economic & Site Selection Research– Technologies that Simplify the Site Selection Search– Partnership Networks


ONGOING CHALLENGES FOR VIRGINIA


TODAY’S ECONOMIC CLIMATE

• Recovery is slow• Recovery is uneven across the Commonwealth• Impact of sequestration still coming• Only modest improvement in labor market• Serious impediments to growth exist:

– Depressed housing market, lengthy adjustment period– Federal spending cuts– Skills mismatch in labor markets

• Competition is aggressive– South Dakota (CNBC #1 for 2013)? Really? – Resurgent Midwest (right-to-work; Pure Michigan)– Visible Northeast (New York’s brand campaign)

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POTENTIAL IMPACT OF SEQUESTRATION



BUSINESS LOCATION DRIVERS


LOCAL SUCCESS REQUIRES


REGIONALISM & PARTNERSHIPS

• Businesses do not see political boundaries• Businesses evaluate and utilize a regional perspective for labor,

transportation, education, supply chain, market, and virtually every aspect of their operations

• In Virginia, the governing system of independent cities and counties creates an artificial barrier for the public sector to answer business needs from a similar regional perspective.

• Regional alignment – and in some cases, regional ownership and/or cost-sharing – is attractive to business.

• Localities that connect with each other effectively can reduce costs, as well as produce more innovative and sustainable solutions in many areas including utilities, workforce, transportation, education, and visibility in the market.



• Economic development through the years:• Era of Industrial Recruiting• Era of Cost Competition• Era of Regional Competitiveness

• New era, new approach• Avoiding fragmentation & insularity• Public and private• Building a collaboration (the Who)• Achieving strategic outcomes (the What)• Sustaining the strategic process by which key outcomes are

achieved (the How)



• Realities of regionalism

• Defining the issue and defining the successful outcome is necessary

• Identifying the common aspect of regional interest, and building the stakeholder relationships is the critical foundation

• Role & responsibilities of partners must be clear• Geographies can be barriers to communication that is

necessary to develop the stakeholder relationships.• Regionalism that produces results takes leadership, trust, time

and treasure.• The issue to be solved, will define the region to be included• Leadership can be stretched thin.• Progress is incremental.

RELEVANT EXAMPLES - TRADITIONAL ECONOMIC DEVELOPMENT MARKETING

23VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

RELEVANT EXAMPLES - PLANNING DISTRICT COMMISSIONS


RELEVANT EXAMPLES – RESEARCH & TECHNOLOGY PARTNERSHIPS

Virginia Technology Alliance: •Virginia has 10 regional technology councils, linked by a network called The Virginia Technology Alliance. The Councils are member-based organizations primarily led by the private sector, and are focused on linking technology stakeholders to advance public policy in support of technology initiatives.

Distributed Research Networks:•Commonwealth Center for Advanced Manufacturing (CCAM) is a non-profit research entity created by the charter partners of Rolls-Royce, University of Virginia, Virginia Tech, Virginia State, and the Community College Workforce Alliance. Its purpose is to focus a research agenda (proprietary and generic) toward the needs of advanced manufacturers.•Commonwealth Center for Advanced Logistics Systems (CCALS) is a non-profit research entity created by the charter partners of LMI and LMR, Longwood University, Virginia State University, University of Virginia and Virginia Commonwealth University. •Center for Advanced Drug Research (CADRE) is a non-profit research institute located in Rockingham County; its original location in Harrisonburg on the campus of JMU resulted from a regional proposal that combined County, City, University and State support.


RELEVANT EXAMPLES – REAL ESTATE DEVELOPMENT

Highlands Business Park (Smyth/Washington)

Cane Creek Centre (Danville/Pittsylvania)•Regional Industrial Facilities Authorities are examples of two localities entering into a revenue-sharing agreement to acquire, build, own and operate industrial parks, and ultimately share the revenue that the parks produce. In each region, neither locality had capacity to develop its own new industrial park, and the economy of scale with two partner investors created a solution.

New River Valley Commerce Park (Pulaski)•Regional Industrial Facilities Authority with more than ten local partners, entered into a revenue-sharing agreement to acquire, build, own and operate this megasite, and ultimately share the revenue that the park will produce.


RELEVANT EXAMPLES – WORKFORCE

Virginia Workforce Council & Regional WIBs•The Virginia Workforce Council is a business-led board that acts as the principal advisor to the Governor and provides strategic leadership to the state regarding the workforce development system and its efforts to create a strong workforce aligned with employer needs. The VWC is also charged with serving as the State Board for the federal Workforce Investment Act (WIA), setting policy and standards for the local Workforce Investment Boards (WIBs) and One Stop Centers.

Dan River Workforce Collaborative•Founded in 2008 to address workforce development in the Dan River Region of Virginia (Patrick, Henry, Pittsylvania, Halifax, Martinsville, Danville). Utilizing a sector strategy approach, the Collaborative promotes regional partnerships of employers, educators, workforce developers and other stakeholders to address the skills needs of regional employers. Within the industry partnerships, the Collaborative’s efforts focus on capacity building, systems change and policy advocacy.


Building Collaborative Communities

A. Fields of Gold This regional economic development collaboration promotes agri-tourism in the Shenandoah Valley. It is a collaborative effort among six counties and five cities in Virginia. It is intended to create and retain jobs on the farm, expand tourism jobs off the farm, and nurture an environment for entrepreneurism.

B. Virginia's Region 2000 Support for an entrepreneurial strategy in Virginia’s Region 2000

partnership. Region 2000 is an interwoven network of organizations with a centralized vision to provide regional development leadership within the 2,000 square miles that surround Lynchburg, Virginia. The organization provides a single point of contact to the public and private sector for regional planning services, economic development, marketing, and workforce training.

RELEVANT EXAMPLE - PROGRAMS


Crossroads Institute•An initiative of Carroll, Grayson and Galax to create an economic and educational engine. Partnership includes Southwest Regional Enterprise Center, Wytheville Community College, Blue Ridge Crossroads EDA, and Crossroads Small Business Development Center.

Innovate Hampton Roads•An initiative of the Hampton Roads region, led by the Hampton Roads Research Partnership, to create an environment where entrepreneurs, businesses and investors can create new opportunities.

RELEVANT EXAMPLES - ENTREPRENEURSHIP

WHAT HAS WORKED

Winchester/Frederick County

“We believe, as hopefully you do, there is nothing that exerts more influence in the

location process than demonstrated success and dedication to the existing economic base.

Over 100 businesses experience Winchester's commitment each year.”

BUSINESS RETENTION & EXPANSION

BUSINESS RECRUITMENT

http://www.rti-intl.com/home.html

Carroll County/Crossroads Institute

To contribute to the revitalization of the region's economy and offer a brighter future for our citizens through an innovative center for educational and economic development

through entrepreneurship.

ENTREPRENEURSHIP & GROWING YOUR OWN


SUPPORTING VEDP’S STRATEGY


QUESTIONS TO CONSIDER

• Is there a clear vision statement?• Do local policies support the vision and goals?• Are local policies aligned with economic development

goals?• How do the goals drive everyday actions?• Is the budget and staffing aligned with strategies for

economic development?• How is success measured?

www.YesVirginia.orghttp://virginiaallies.org

http://www.yesvirginia.org/

http://virginiaallies.org/

virginia economic development partnership carving out a leadership role in economic development...

Documents

virginia companiesally

operationsin virginia

regional alignment

similar regional perspective

business needs

labor marketscompetition

depressed housing market

strategic process