Economic Roadmap for Future Growth Toward a More Diverse, Growing and Prosperous Regional Economy

Transcription

1 Economic Roadmap for Future Growth Toward a More Diverse, Growing and Prosperous Regional Economy Presentation to: Hampton Roads Association for Commercial Real Estate October 20, 2016

2

3

4 Today s Discussion: Three questions Where are we economically? What challenges are ahead? What is the Alliance plan for growth?

5 Payroll Employment - Hampton Roads Thousands Through April 2016, Seasonally Adjusted Peak Employment: July 2007 Employment = 781,600 Recession 9,800 jobs shy of pre-recession levels December 2007 June ,700 jobs lost June 2009 YTD ,000 jobs gained Source: Federal Reserve Bank of St. Louis, Economic Research Division

6 Net Out Migration - Hampton Roads 5,000 Linear forecast drawn from years ,260 3,000 1,000-1,000 (1,020) (374) (582) (890) (809) -3,000 (3,205) (2,958) (3,742) -5,000 (4,917) -7,000 (6,507) (f) 2017(f) Source: HRPDC, U.S. Census

7 The Real Problem: Extended Recovery from Job Loss Size of Market Recession Baltimore: 4 years to recover 72,400 (5.48%) Average Duration to Recover Jobs Lost: 5 years Orlando : 7 years to recover 103,700 ( 9.54% ) Charlotte: 6 years to recover 91,900 (8.89%) San Antonio: 3 years to recover 21,800 (2.53%) Nashville: 4 years to recover 53,000 (6.61%) Hampton Roads: 11 years to fully recover 47,800 jobs (6.12%) Jacksonville: 7 years to recover 58,000 (9.15%) Richmond: 6 years to recover 38,700 (6.20%) Raleigh: 4 years to recover 32,300 (6.14%) Charleston: 4 years to recover 21,300 (6.99%) Peak Employment = Employment Low Passed Peak Employment

8 Depressed Absorption: Class A Office Space Nashville Baltimore Charleston Charlotte Raleigh San Antonio Orlando Hampton Roads Jacksonville Richmond Overall Vacancy Rate

9 Depressed Rents: Class A Office Space Employment Growth Returning to Peak YTD 18% 16% 14% Size of the Bubble = Magnitude of Employment Lost Peak to Trough *Hampton Roads Growth = Trough to YTD San Antonio Raleigh Nashville 12% Orlando Charleston 10% 8% Richmond Charlotte 6% Baltimore 4% Jacksonville 2% Hampton Roads 0% 0% 5% 10% 15% 20% 25% 30% Rent Growth -Class A Office Space Return to Peak YTD

10

11 Where do we go from here? Alice in Wonderland By Lewis Carroll Would you tell me, please, which way I ought to go from here? That depends a good deal on where you want to get to, said the Cat. I don t much care where said Alice. Then it doesn t matter which way you go, said the Cat. so long as I get SOMEWHERE, Alice added as an explanation. Oh, you re sure to do that, said the Cat, if you only walk long enough.

12 Expected Strategic Path or Roadmap ROADMAP TO GROWTH DETERMINE WHO IS ACCOUNTABLE IDENTIFY WHAT S IMPORTANT DEFINE GOALS AND OBJECTIVES DETERMINE WHERE YOU ARE

13 Observed Strategy and Decision Congestion.Caution! Tough Decisions and Choices Ahead

14 There is no yellow brick road!

15 However, there are 3 lessons Never bow to fear 2. Have the heart to succeed 3. Sometimes success is in your head

16 Alliance Challenges Regional and Community Identity Functional Roles and Relationships Economic Performance and Results

17 How we see our region How we see our region

18 How seesee us us Howclients clients

19 How the market sees regional organizations

20 How we need to be seen

21 How we need to go to market Regional Brand Identity Architecture Commonwealth Brand and Business Climate Positive Regional Identity Strong Distinctive Community Brands

22 What we need now More Jobs Better Jobs

23 5-Year Higher Wage Growth Strategy 58,000 New Regional Jobs Over 5 Years 7,000 Accelerated growth of 19,000 advanced cluster jobs will drive growth of 58,000 jobs. 6,000 5,000 19,000 Target Industry Cluster Jobs over 5 years 25% or 4,754 jobs from new-to-market recruitment. 75% or 14,262 new jobs from accelerated growth and expansion. 4,598 6,093 1,214 Regional Alliance Share 4,000 3,513 1,065 3,000 2, ,000 2, ,533 4,879 High Growth & Expansion Share 1,000 1,377 1,883 2, Source: Hampton Roads Economic Development Alliance, Department of Business Intelligence

24 How we can add value to Economic Development Portfolio of Regional Assets and Actionable Competiveness Initiatives HELP COMPANY establish in region PRESENT & SELL location to client Business Development and Sales Promotion Economic Development Business Cycle Branding, Marketing and Communications

25 TURNING POINT GETTING BACK ON TRACK AND TELLING OUR STORY TO THE WORLD 2017 Business Plan THE CAMPAIGN FOR THE REGION S FUTURE IS NOW

26 COMMON VISION: A more diverse, growing and prosperous regional economy. COLLECTIVE MISSION: Aggressively attract, grow and retain higher wage industries, talent and jobs.

27 THE STRATEGY Reposition regional business identity Diversify through attraction, growth of existing firms and development of innovative industry clusters. Focus on higher wage advanced industry sectors. Come together and collaborate like never before. THE PLAN FOR MORE AND BETTER JOBS A clear five-year higher wage job creation plan. Competitive marketing and branding campaign. Deeper engagement of top public-private leaders. A sustained effort and approach over the longer-term.

28 Clear and Realistic Targets Business & Financial Services Info, Analytics & Security Advanced Manufacturing Bio Science & Bio Medical Maritime, Logistics & Supply Chain Aviation, Aerospace & Defense

29 Alliance Marketing Strategy Ecosystem Take the region to market with a comprehensive approach Mission: Aggressively attract, grow and retain higher wage industries, talent and jobs Marketing and Missions, Tradeshows Direct Prospecting Regional and Communications and Conferences and Outreach Community Alignment Ensure decision-makers and Present the brand promise to Active regional promotion Extend awareness of strategies, influencers are aware of, value and understand the unique advantages of operating a business and pursuing a career in the Hampton Roads region and its unique and distinctive communities. key audiences through targeted events, missions and meetings. Site Selectors Guild CORENET IAMC Target Industry Sector conferences and shows through direct outreach. Regional Road Shows Out-of-Market Outreach and Sales Promotion Brand Ambassadors Spokesperson and Message Training plans and opportunities among Community Leaders, Business Leaders and Residents. One Region Event on Alliance 20 th Anniversary Regional Media Outreach Regional Identity Architecture based on Strong Community Brands

30 New Funding is Needed for a Competitive Effort Competitive Budget Proposed 2017 expenditure budget of $1.79 per capita Increased recruitment program by 31% Investment of reserves to fund budget needs Major increase in private sector funding $3,500,000 $3,000,000 $2,500, Budget Comparison $3,043,275 $707,899 $2,327,872 $2,000,000 $392,638 $1,074,716 Current Funding Support $1,500,000 $829,849 37% 63% $1,000,000 $500,000 $0 $327,832 $246,828 $89,538 $111,900 $162,858 $225,136 $606,163 $595, Budget Outlook 2017 Proposed Budget Public Sector Private Sector General Operations Industry Cluster Support Business Development Investor Relations Business Intelligence Marketing & Promotion

31 ROI on 5-Year Higher Wage Growth Strategy Regional Impact Total Economic Output $1,690,320,923 Value Added $850,637,288 Labor Income (Payroll) $503,534,062 Employment 8,856 Regional-Local Taxes $35,185,095

32 Key Success Factors ENGAGED LEADERSHIP Engaged, enlightened and collaborative public/private leadership STRATEGY & PROGRAM Clear strategy, program 1 of substance and effective execution 2 EFFECTIVE STAFF Strong, effective, well trained and team oriented professional staff 3 4 ADEQUATE RESOURCES Adequate, sustainable funding and resources over time Copyright PresentationGo.com The free PowerPoint library

33 We need you with us on this journey

34 One more thing One more thing Do or do not. There is no try

35 Questions, Comments

36 Thank you very much! Rick Weddle, President and CEO Hampton Roads Economic Development Alliance

37