VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP YESVIRGINIA.ORG ORGANIZING FOR SUCCESS IN ECONOMIC DEVELOPMENT 1
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP
YESVIRGINIA.ORG
ORGANIZING FOR SUCCESS IN ECONOMIC DEVELOPMENT
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VEDP MISSION STATEMENT
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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.
THE VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP (VEDP)
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• Virginia’s Business Welcome Center • Global Gateway for Virginia Companies • Ally for Virginia’s Communities • Revenue Generator for Virginia’s Citizens • Good Steward • Report to Board of Directors
– 24 members – 18 appointed by the Governor or the General Assembly – 6 ex-officio members – 6 year terms
• Report to the Secretary of Commerce and Trade
THE MARKET - REPORT CARD ON 2014
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP
• Announcements results up compared with 2013 • Jobs: +35% (21,531) Strongest since 2011 • Capital Investment: +64% ($5.5 billion) Strongest capex on record
• Existing Business Expansions remain important to economic performance: 66% of jobs; 63% of capital investment
• Manufacturing represents 45% of job totals; 60% of total capital investment; very diversified activity
• Paper Manufacturing surpassed Data Centers as the dominant sector for investment; ($2.11B); Data Centers stayed strong at $2B
• Professional, Scientific, and Technical Services continues to be dominant sector for job growth (3,814 jobs)
• International investment up 303%* ($2.7 billion), 17% of all projects, 5,493 new jobs (+77% from 2013); slowly climbing back from the 2008 peak of almost 7,000 jobs
* +3% excluding the Tranlin deal
WHAT IS THE MARKET DELIVERING?
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP
• Market activity remains strong • Active Pipeline of projects is + 60% since Dec 2013 • Delivered Custom Proposals/RFI responses are
+74% from FYTD 2014 • Manufacturing represents 75% of these proposals
• Leading sectors: food & beverage, chemicals, industrial machinery, automotive/transportation)
• Corporate headquarters, operations centers • Professional Services
• Improving interest from retail distribution centers; seeing DCs integrated into manufacturing operations
• Average Deal Size : 67 jobs*; $13 million* • Ten Years Ago: 101 jobs; $8 million *For averages Tranlin deal was excluded.
THE NEW VIRGINIA ECONOMY
• A Commonwealth at the Crossroads
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• VEDP Current & Proposed Deliverables
• Recalibrating VEDP
• Five Declarations of Intent & Hurdles to Clear
STRATEGIC REVIEW 2015
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• The New Virginia Economy – “…Enhancing our infrastructure…”
VEDP Proposed Deliverable 1. Establish and fund public/private partnership site program, with emphasis on mega-sites
STRATEGIC REVIEW 2015
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• The New Virginia Economy – “…Growing our strategic industry sectors…”
VEDP Current Proposed Deliverables 1. Produce target sectors for marketing 2. Build-out geographic capacities 3. Conduct more in-depth sector research in targeted markets 4. Rely on empirically-driven marketing to reach key prospects 5. Outreach to key corporate and high-growth businesses 6. Expand communication and coordination with allies 7. Put in place cross-department industry sector “swat” teams
STRATEGIC REVIEW 2015
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• The New Virginia Economy – “…Promoting our competitive business climate…”
VEDP Current and Proposed Deliverables 1. Develop new brand for The New Virginia Economy 2. Market attributes of Virginia regions 3. Increase exports to global markets 4. Build stronger collaborative partnerships 5. Create synergies and support work of VEDP’s regional allies 6. Benchmark Virginia’s regional industry strengths against global competitors 7. Protect Virginia’s competitive taxation system, fair regulatory environment and business-friendly laws and leadership
STRATEGIC REVIEW 2015
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• The New Virginia Economy – “…Nurturing a sustainable entrepreneurial environment…”
VEDP Proposed Deliverables 1. Develop the first statewide sustained high-growth firm strategy in the nation
STRATEGIC REVIEW 2015
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• The New Virginia Economy – “…Equipping Virginia’s workforce with in-demand skill sets…”
VEDP Current and Proposed Deliverables 1. Fully integrate workforce (VJIP) into operations 2. Enhance VJIP as a portal for businesses to access workforce delivery capabilities 3. Leverage and champion higher education partners in creating credentials that count for business
LOCAL, REGIONAL, STATE…..PARTNERSHIPS!
STATE
REGION
LOCALITY
AT THE LOCAL LEVEL • Provide leadership to the community in attaining its goals. • Have we established goals for our community?
Where are they found? Is there community consensus around those?
• Do we have…
– An Economic Development Strategy or Plan? – A process for measuring progress against the plan? – Designated ownership in the community for various
plan elements & implementation? – A real estate strategy? Prepared, controlled sites? – Resources ($$ and people) to carry it out?
AT THE LOCAL LEVEL • The toughest part. Looking at your community through the
lens of an outsider, potential investor. Why would a business choose to come to my locality?
• Objective analysis of conditions in the community • What forces are impacting the community? • Truly understand the economic base of the community.
What is the structure of my community’s economy? What stands out as a strength? What looks like a vulnerability?
• Forms the foundation for pulling together a strategic plan. • Lead with your strengths. Plan for shortcomings. • Look for collaborations, partnerships, ways to leverage
partners strengths.
AT THE REGIONAL LEVEL • Regions are the primary level of analysis for businesses • 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. (example, regional industrial parks.)
• Localities that connect with each other effectively can reduce
costs, as well as produce more innovative, competitive and sustainable solutions in many areas including utilities, workforce, transportation, education, and visibility in the market.
AT THE REGIONAL LEVEL
• Realities of regionalism – not easy, can be messy • 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.
AT THE STATE LEVEL
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP
• Coordinating entity with high visibility in global market • Capturing Virginia’s distinctive regions into a multi-
faceted unified outreach marketing strategy • Serving as trusted advisor to existing businesses • Leveraging the prestige and power of the Governor’s
Office • Linking and leveraging state partners to solve business
needs • Identifying business issues and recommending policy
modifications to create a stronger business climate • Serving as a resource to share best practices with
localities and regions • Managing state incentive programs
WHAT DOES SUCCESS LOOK LIKE?
LOCAL, REGIONAL, STATE: PARTNERS
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