wine cluster study and implications for planning emsi conference september 11, 2012 steven...
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Wine Cluster Study andImplications for Planning
EMSI ConferenceSeptember 11, 2012
Steven VanAusdle, PresidentWalla Walla Community College
Welcome to
Walla Walla
Balancing Security,Prosperity, and the Environment
The Challenges of our Time
Safety andSecurity
EconomicCompetitiveness
EnvironmentalSustainability
*Improving Productivity will require more innovative uses of existing resources.
A Strategy for Economic Competitiveness
Talent Investment Infrastructure
Jobs, Wages, andStandard of Living
Productivity*
Innovation and Entrepreneurship
Infrastructure•Information Technology•Energy Technology•Water Technology•Waste Management Technology•Transportation Technology
Regional StrategyFor Economic Development
Talent•STEM programs•High-demand programs•Establish high school skills center•Use instructional technology for
access and efficiency•Economic studies
Investment & Entrepreneurship•Increase access to expertise and capital•Strengthen capabilities of manufacturing•Provide small business incentives•Ensure regulations are not barriers•Promote entrepreneurship
WWCC Center for Enology & Viticulture
2006 Governor’s Workforce and Economic Development Best Practice Award
Our Vision: Wine / Food / Art
WWCC Enology StudentsLearning While Creating College Cellars Wine
Wine Country Culinary InstituteWith a Focus on Pairing Food and Wine
Port of Walla WallaWine Incubators
Vinea: Sustainable Wine Farming
The Cluster-Based Approach to Economic Development
WWCC was awarded an $82,000 grant, plus a $25,000 match, to:• Define and describe the nature of the region’s
functional economy;• Describe the nature of the wine industry cluster;• Develop a shared vision;• Determine the influence of the wine industry cluster;• Develop a strategic plan for the wine industry cluster;• Maintain a wine industry cluster web site.
Walla Walla AreaFunctional Economy
WALLA WALLA AREA FUNCTIONAL ECONOMY
Westernmost edge of Walla Walla County (includes Columbia County, most of Walla Walla County, and part of Umatilla County)
Umatilla County, Oregon
WALLA WALLA COUNTY
COLUMBIA COUNTY
WASHINGTON
OREGON
UMATILLA COUNTY
Net Migration, Walla Walla County
2000
1500
1000
500
0
-500
-1000
-1500
1995-2000
2000-2005
Sources: U.S. Census 2000 (Residence 5 years ago), U.S. Census Annual County Population Estimates
25000
30000
35000
40000
45000
1977
1982
1987
1992
1997
2002
2007
2012
2017
Tota
l Reg
iona
l Jobs
Without Wine ClusterWith Wine Cluster
The Economic Impact ofWalla Walla Valley Wine
Total current jobs in wine production and tourism 1,094
Growth rate of jobs related directly to wine, 1997 – 2007 1,052%
Total earnings generated by wine-related jobs $96 million
Additional jobs created by economic multiplier effects 937
Total regional earnings due to wine-related industries and multiplier effects $59.3 million
Total jobs projected to be dependent on wine-related industries in 2017 3,975
Proposed Initiatives
• Marketing (6)• Education and Workforce (8)• Infrastructure (8)• Amenities (3)• Policy (8)
VisionFoster a Healthy Economy
and a Healthy Environment
Mission
Collaborators
Initiatives
Values
K-12
University Center
WWCC
County
City
Port
Chambers of Commerce
TourismWalla Walla Wine
AllianceArt
Alliance
Sustainable Living Center
Wallowa Resources
Utilities
Dept. of Ecology
Salmon Recovery
Board
ConfederatedTribes
Water Center
Walla Walla WatershedPartnership
Enology & Viticulture
Center
DowntownFoundation
Career Pathways
Infrastructure
Business Development
Wine & Hospitality Cluster
Renewable Energy
Energy Efficiency
Water Efficiency
WaterQuality
WatershedRestoration
Skills Center
Workforce Development
Rural Center forEntrepreneurship
Collaboration
Excellence
Integrity
Entrepreneurship
Partnerships
Sustainability
Innovation Diversity
Learning
Creating the Walla Walla Innovation Partnership Zone (IPZ) Ecosystem
Economic, Environmental, and Cultural Sustainability
Industry Cluster:
Groups of similar or related industries that are geographically concentrated and may achieve collective efficiencies and increasing returns to scale through transactions, shared labor pools, infrastructure, knowledge and technology spillovers, and other complementarities.
Questions How has this regional economy changed over the
past five years? How has the wine cluster changed over the last five
years? What are the effects of the economic downturn on
the region and the wine cluster? How do indicators of economic progress compare in
2011 with the 2006 benchmarks? What are the priority initiatives for growing the
regional economy and what central role can the IPZ continue to play?
What are other potential clusters the IPZ can promote?
Walla Walla Valley Wine Cluster StudyWashington State Legislature,
Wine Commission, Wine Institute, andWalla Walla Valley Wine Alliance
Growers/Vineyards
Wineries/ProcessingFacilities
Grape Stock
Grape HarvestingEquipment Vendors
Irrigation TechnologyManufacturers
Compostea
Worm Farming
Fertilizer, Pesticide,& Herbicide Vendors
Barrel Accessories
WinemakingEquipment
Bottle Etching
Caps and CorksSuppliers
Public Relations& Advertising
WashingtonAgricultural Cluster
Art Cluster
Culinary Cluster
Tourism Cluster
INFRASTRUCTUREEducational, Research, and Trade Organizations
(e.g., WWCC Enology & Viticulture Center& Culinary Arts Program, WSU)
Based on Michael Porter’s formatfor describing industry-based clusters
Projected IPZ EmploymentWith and Without the Wine Cluster
19771980
19831986
19891992
19951998
20012004
20072010
20132016
201925000
30000
35000
40000
45000
With Without
The Walla Walla IPZ Wine Cluster
Percentage Growth in Overall Employment 2006 to 2011
United States - 1.5%Washington State 1.1%
IPZ 11.3%
Walla Walla Regional Wine Economy, 2011
Direct jobs in wine production and wine tourism 2,061Direct wine cluster employment growth, since 2001 76%Total earnings generated by the wine cluster $96 millionWine cluster jobs, including multiplier effects 6,003Total regional earnings $230 millionTotal jobs projected to be dependent on the winecluster in 2017 8,913Percent of all jobs dependent on wine cluster 14.4%Projected percent of all jobs dependent on wine cluster in 2020
19.8%Regional economic growth since 2007 9%Regional economic growth since 2007, absent the wine cluster
2%
Wine Cluster Research Summary
• Growth in the wine industry occurs in tandem with wine tourism.
• The wine cluster’s share of the regional economy is increasing: a multiplier effect of 3 and location quotient of 50.7.
• Wine cluster diversifies the region’s industrial mix and contributes to its resilience, dampening the effects of economic recession.
Cluster Research InformsPlanning Decisions
• Align Workforce Education programs with regional economy
• Adjust the scale and scope of existing programs• Create new programs• Identify industry needs• Identify and target potential high wage/high
growth sectors• Identify public policy needs
NationalJournalHow Wine Growing in Walla Walla Supports the EconomyBy Catherine HollanderJune 1, 2012
“America’s economy today feels as sleepy as Walla Walla’s two decades ago. Middle-class workers were slammed by the financial crisis, their jobs disappearing, wages stagnating, and future uncertain. To put them back to work, the nation would do well to consider Walla Walla, which seems to have cracked the code on how to get mid-skill workers back into the labor force while revitalizing an economy.
If the country needs a model, this could be it.”
WALLA WALLA
Union~BulletinWednesday, May 30, 2012
College Cellars wineswin regional acclaimEight wines from the local teaching winerytook home honors from recent judgingsWALLA WALLA – Student-made wine brought home nearly a case full of hardware at the recent Seattle Wine Awards and Northwest Wine Summit. In the Seattle Wine Awards, College Cellars won three double gold medals for its 2011 Ice Wine, 2009 Syrah and 2008 Malbec. Silver medals were awarded for the 2011 Sauvignon Blanc and 2010 President’s Blend, along with a bronze medal for the 2010 Scholarship Red. The college’s 2011 Chardonnay won gold and its 2011 Semillon won bronze in the Northwest Wine Summit awards, which covers Alaska, Alberta, British Columbia, Idaho, Montana, Oregon, and Washington.
The 7th Annual Seattle Wine Awards is Washington State’s largest and most comprehensive independent wine recognition program. On April 21 & 22, local and national wine professionals gathered to taste and evaluate 982 Washington wines in a single-blind format (meaning grape variety or style is known, but not price or producer) and awarded the top wines by consensus with Double Gold, Gold, Silver and Bronze Grand Awards of Excellence.
Water & Environmental Center
2010 Governor’s Workforce and Economic Development Best Practice Award
• 90 construction jobs• 27 additional jobs created associated with
Center Expansion• At least 250 direct and indirect jobs created,
according to Earth Economics• 129 graduates in 9 years with $414,336
increased lifetime earnings for each graduate
Water & Environmental CenterJobs Created and Enhanced
Employment, Earnings, and Sales
Vineyard Operations Winery Operations
TimePeriod
NewAcres
NewFull-TimeJobs
TotalCombinedEarnings
GrossSales
NewFull-TimeJobs
TotalCombinedEarnings
GrossSales
Year 3 200
Year 6 500
Year 9 1,000 120 $4,392,000 $8,750,000 200 $6,000,000 $60,000,000
Indirect 48 $2,898,720 $2,800,000 80 $3,960,000 $19,200,000
Total 168 $7,290,720 $11,550,000 280 $9,960,000 $79,200,000
Economic Impact of Establishing 1,000 AcresOf Vineyard Production in the Walla Walla Valley
Can We Create An Energy Cluster in Southeastern Washington?
Wine is Prosperity in a Bottle