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Jeffrey A. Finkle , CEcD President & CEO, International Economic Development Council (IEDC) MEDA Conference June 7, 2012. National Trends in the New Economic Development Landscape. About IEDC Overview of the Economy Challenges in the New Economic Development Landscape

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national trends in the new economic development landscape

Jeffrey A. Finkle, CEcD

President & CEO, International

Economic Development Council

(IEDC)

MEDA Conference

June 7, 2012

National Trends in the New Economic Development Landscape
presentation outline

About IEDC

  • Overview of the Economy
  • Challenges in the New Economic

Development Landscape

  • Industry Clusters for Job Growth
  • Trends in Economic Development
Presentation Outline
about iedc
About IEDC

The International Economic Development Council (IEDC) is the world's

Largest membership organization serving the economic development profession. We are dedicated to helping economic developers do their jobs more effectively and raising the profile of the profession.

When we succeed, our members create more high-quality jobs, develop more vibrant communities, and generally improve the quality of life in their regions.

iedc membership
IEDC Membership
  • From public to private, rural to urban, and local
  • to international, our 4,600+ members include:
    • Public state, regional, city and county ED
    • professionals
    • Chambers of Commerce and other business support
    • agencies
    • Technology development agencies
    • Redevelopment authorities
    • Educational Institutions & Non-profits
    • Consultants
    • Utility companies
slide5

Member Services

  • Conferences
  • Professional Development & Certification
  • Legislative Tracking
  • Clearinghouse
  • Career Services
  • Newsletters and Journal
  • Advisory Services & Research
overview of the economy

Globalization created a more uncertain and riskier

economy, enabling opportunities throughout the globe,

but also greater risks

and

  • The Great Recession led to general economic

deterioration across the nation, followed by a slow

recovery

Overview of the Economy
overview of the economy1

National Data: The Great Recession & the Recovery

  • Over 8.8 million jobs lost the since recession began in December 2007

 we have regained only one-fifth of them to date

  • Over 14 M people remain unemployed today
  • Construction lost over 2 M jobs since the recession
  • Manufacturing lost 2 M jobs since the recession
Overview of the Economy
overview of the economy2

Snapshot of Maryland

  • Unemployment in Maryland 2011: 7.1%

 Lower than U.S. average for 2011 of 9.2%

  • Foreclosure crisis in the state resulted in:

 Annual loss of more than $26 million in state & local income

tax revenue

  • Maryland 2010 population over age of 65: 12%

 National average 2010: 13%

Overview of the Economy
challenges in the new economic development landscape

Economic developers have been increasingly

  • challenged due to the negative effects of the

recession and global shifts

These global shifts have instigated a reassessment of economic

development strategic priorities and the role of the practitioner

in the community

Challenges in the New Economic Development Landscape
challenges in the new economic development landscape1

In the last 3 years, the profession overall has been

greatly hindered by:

  • Lack of access to capital and financing
  • Business closures and downsizing
  • Declines in real estate development

Other challenges have been…

Challenges in the New Economic Development Landscape
slide13

Challenges in the New Economic Development Landscape

More challenges to economic development in the

new landscape:

  • City/county/state budget cuts
  •   Lack of political support for economic development
  • Home foreclosures
  •   Industry restructuring
  •   Complicated regulations/permit process
  •   Lack of skilled labor
  •   Inadequate education

Moreover…

challenges in the new economic development landscape2

Jobs - the retention and creation of jobs - has taken

precedent over business attraction and real estate

development as priority goals in many communities

  • The recession has led to a broadening of ED efforts among

strained communities

i.e., places that were not focusing on small

business development & entrepreneurship

previously are creating programs to meet the

unemployment challenges

Challenges in the New Economic Development Landscape
challenges in the new economic development landscape3

In this new landscape, economic developers have

had to shift gears

What does this mean?

It means restructuring local economies

to more efficient, more diversified, and

more resilient to shifts and challenges

Challenges in the New Economic Development Landscape
slide16

Industry Clusters

for Job Growth

industry clusters for job growth

Main Sectors with Job Growth for Today & Tomorrow

  • Healthcare
  • Information Technology
  • Energy: Utilities, Green
  • Financial Services
Industry Clusters for Job Growth
industry clusters for job growth1

The gap between industries that lost jobs vs. industries

that are hiring:

Jobs Lost vs. Jobs Available

Auto (manufacturing) Healthcare

Construction IT/Engineering

Banking Energy

...and Manufacturing in

various sectors

Industry Clusters for Job Growth
industry clusters for job growth2

Healthcare

Nationally, 631,000 people hired in

healthcare bt. Dec 2007  & June 2009

…despite the recession

Since June 2009, job growth in healthcare grew by 3.5%

 Growth is expected to remain steady in the sector

as baby- boomers grow older & obesity increases

 The need will increase for physical therapists, RNs,

cardio technicians & occupational therapists

Industry Clusters for Job Growth
industry clusters for job growth3

Information Technology

1 million new technology-related jobs

will be created over the next 4 years

 an increase of about 10%

  • Database administrator jobs: a hot field with ample

opportunity for growth

*The intermingling of healthcare & IT – stemming from

increased pressure to digitalize medical records - could

provide a large number of new jobs

Industry Clusters for Job Growth
industry clusters for job growth4

Energy: Utilities, Green

1

  • Nationwide, turnover for utilities positions

will be high in the coming decade as older workers retire

 2008: 53% of utilities workforce was age 45 or older

      • The job-creation potential of the green economy is

immense

 Jobs range from jobs high-paying science & research,

engineering and legal fields to low & semi-skilled

workers in construction and manufacturing

Industry Clusters for Job Growth
industry clusters for job growth5

Financial Services

Accountant jobs:  growth of 22%

predicted in the next decade

  • Financial advisers: growth of 41% predicted over the next

decade

  • The actuarial field: growth of 24% predicted over the next

decade

Industry Clusters for Job Growth
industry clusters for job growth6

About Manufacturing

21stcentury manufacturing has become

highly technical & innovative

  • Manufacturing jobs can be found in most sectors, from energy,

IT (making devices), life sciences, etc…

 manufacturing is vital to U.S. competitiveness

  • About 5.5 million Americans today work in manufacturing - more than any other sector in the nation

*However, the U.S. is facing a huge skills gap for

technical and analytical workers in manufacturing

Industry Clusters for Job Growth
industry clusters for job growth7

What does this mean for economic development?

To meet industry demands, communities will need to:

  • Upgrade the skills of existing workers
  • Begin transitioning the workforce to new skill

sets today - to be prepared for tomorrow!

  • Attract new talent and youth

*WFD efforts & ED efforts MUST

be coordinated today

Industry Clusters for Job Growth
industry clusters for job growth8

In terms of manufacturing:

  • Education will be the key to the U.S. maintaining an

competitive edge

  • ED practitioners and WFD leadership need to:

 Engage manufacturers in identifying needs

 Update curriculum at local training institutions

Recruit manufacturers for local workforce investment boards

Use local workforce data to inform existing manufacturers

about opportunities in their local labor market

Industry Clusters for Job Growth
industry clusters for job growth9

Addressing the Skills Gap:

Towson University’s Division of Economic &

Community Outreach (DECO) in Maryland

  • Provides a pipeline to employers of both educated &

professionally certified employees who meet immediate

hiring needs

 enables students to take professional certification courses

while studying for BA and graduate degrees

  • The university has created a 3D Digital Object Lab that allows

regional industries learn how to use advanced technologies to

increase efficiency

 also gives students exposure to advanced manufacturing

techniques

Industry Clusters for Job Growth
trends in economic development

Economic development professionals are:  

  • Reassessing the role of the practitioner in the community
  • Altering strategic priorities and developing new strategies

to support the prosperity of workers and regions

The aim is to build a resilient local economic base & create

quality jobs for the long-term

Trends in Economic Development
from the 2012 iedc member survey in the past year how have you altered your organization s strategy
From the 2012 IEDC Member Survey: In the past year, how have you altered your organization’s strategy?
trends in economic development1

Today, competitive communities are focusing on:

  • Strategic Partnerships
  • Regional Cooperation
  • Business Retention
  • Entrepreneurship & Small Business Development
  • Economic Gardening
  • Marketing/Social Networking
  • Clean Energy & Energy Efficiency
Trends in Economic Development
trends in economic development2

* Communities are building on assets already in place and

engaging in strategic partnerships

Engaging in strategic partnerships is critical

to creating quality job opportunities in the

community

Partnerships with:

Chamber of Commerce, a local or state government,

community-vocational college, another EDO, and the

private sector

Trends in Economic Development
slide32

From the IEDC 2012 Member Survey: Have you entered in partnerships or combined resources with other stakeholders in the community to enhance ED efforts ?

trends in economic development3

Regional collaboration

has remained steady as

an important ED strategy

  • Regional collaboration facilitates efforts for the

retention & expansion of local/regional business

Trends in Economic Development
trends in economic development4

* Fostering Entrepreneurship & Small Business Development

are important ED strategies today

 By strengthening the economic base, regions can better promote

innovation and develop strategies to attract talent and business

The Kauffman Center for Entrepreneurial

Leadership describes entrepreneurs

as “generative and self-renewing”

Trends in Economic Development
trends in economic development5

* Most of the new jobs created in the U.S. over the last 25

years came from young entrepreneurial companies

In todays competitive global marketplace

entrepreneurial firms are the driving force

behind economic recovery, job creation and

regional economic growth

Trends in Economic Development
national trends in the new economic development landscape1

Summary

  • The recession and global shifts have provided many challenges, but there are also many opportunities for communities to expand upon and evolve
  • Upgrading the skills of exiting workers and attracting talent are vital for local economic growth

 WFD and ED practitioners must collaborate to establish a resilient

workforce and create jobs

  • Strategic partnerships, regional collaboration and strategies to foster entrepreneurship & small business development are ever more important in the new economic development landscape
National Trends in the New Economic Development Landscape
thank you

Thank you

Questions?

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