PRESENTATION Georgia Power - Coweta Co Dev Auth 1-28-10

Coweta County Development Authority&

Georgia Power CompanyCommunity and Economic Development

January 28, 2011

HERRON CONSULTINGHERRON CONSULTING

Community AssessmentCommunity Assessment

AgendaAgenda

• About HERRON CONSULTING

• Outline Of the Project

• Findings and Recommendations

• Questions

HERRON CONSULTING HERRON CONSULTING

• Senior Professionals The Principals Have 20+years of Experience Each

• Economic Development Strategy and Planning Community Assets and Competitiveness Site Assessments / Site Certifications Real Estate Analysis and Redevelopment Potential

• Corporate Site Selection Feasibility Studies Site Selection Implementation Services and Negotiation

Certifications:

- Women’s Business Enterprise National Council

- City of Atlanta

Representative Community Economic Development Projects

AEP Public Service of OKApple Valley MNBoston MABowling Green/Central KYCampbellsville KYChicago ILClinton IACoos County ORDallas TXDenver CODuke Energy/CinergyEmpire State Development NYErie PAFort Wayne INFrisco TXFox Cities WIGlenview ILGreensburg-Decatur County INGeorgia Power Co.

Hammond INHartford CNHouston TX Jacksonville FLKenosha WILafayette/W. Lafayette INLake Bluff ILLake Forest ILLehigh Valley PALas Vegas NV Los Alamos NMLos Angeles CAMartinsville-Henry County VAMesa AZMilwaukee WINavy Pier, Chicago New Orleans LANortheast OK AutomotiveCoalition

Pittsburgh PAPort of Lake Charles LAPort of South LouisianaQuad Cities IL-IA SAIL (Southeast Alliance of IL)Southern Illinois DeltaEmpowerment Zone

Springfield ILWest Cook County ILCeco Industries, Durham NCDisney Development, OrlandoFurman Co, Greenville SCHoward Hughes, Las VegasTaco Bell-FL and GAFederal Peer Review GrantPanels, Chair

•DHHS•HUD

Representative Site Selection Projects

AlcoaAmsted Rail GroupAESAkzo SaltAREVAAtlantic Electric BNSF RailwayBMWBoeingChanelCiba-GeigyColgateCorningDaimlerChryslerElmer’s ProductsEmbrexEcce PanisEast Kentucky PowerEl Paso Natural GasFanny Farmer Co.Florida Power & LightGriffin Wheel

Hoffman LaRocheHunt WessonJ M Huber Chemical KrogerLong Island Lighting Co.Louisiana Offshore Oil PortLucentMaytag3MMinerva PropertiesMetal LeveMobil Research & Dev.Moeller Marine ProductsNational Starch & ChemicalNevada PowerObayashiOkonite Wire & CableViking PressVolvoWilliams InternationalLord & TaylorTractor Supply Co.

AIGAmerican ExpressAT&TBlue Cross-Blue ShieldPitney BowesPrudentialThe New EnglandU S Trust Co. of New YorkAir Products & ChemicalsAlcoholics AnonymousAmerican Cancer SocietyAmerican International (AIG)Associated PressAT&T CapitalCAREDeloitteEntergyISONational Basketball Assoc.Presbyterian Pension Board

Industrial Office - Headquarters

Examples: Corporate Siting ObjectivesExamples: Corporate Siting Objectives

Corporate Site Selection ProgramObjectives

ImprovedGlobal/MarketPosition

Profit-Driven

Culture

Time to Market Competitive

Cost Advantage

EfficientSupply Chain

Effective Asset

Management

Some observations based on our site selection work with companies around the nation:

Site Selection Decision Makers Avoid Risk

• They seek a relationship with a partner community that can demonstrate: Understanding of their concerns

Willingness to share risk

Ability to navigate the political/regulatory landscape

Continuous improvement in the business environment and commercial infrastructure

• These challenges create opportunity for confident and forward-looking communities

It’s All About The CompetitionIt’s All About The Competition

Industry Week 2009

Planned supplier locations:

Coweta CountyCoweta County

Community AssessmentCommunity Assessment

Project Outline

• Study Timeline – 30 days • Purpose

Provide Coweta County Development Authority (the Authority) and Georgia Power Company Community and Economic Development (GPC CED) with information and recommendations useful for developing:

Strategies related to retaining and growing the industrial base

A targeted industry recruitment strategy

Partnerships between the Authority, the Chamber and other key stakeholder groups

A business plan for the Authority

Project Outline

• Data collection and confidential interviews

• Analysis

• Findings and Recommendations Economic Conditions and Trends

SWOT Analysis

Target Industries

Organizational Assessment

Findings and Findings and

RecommendationsRecommendations

PART 1:Economic Conditions and Trends

• Provides foundation for understanding demographic/economic trends; assessing Coweta County’s SWOT; and identifying target industries

• Comparison areas: Coweta County

Coweta Area (8-county Labor Area, per GDOL)

Atlanta MSA (20-county MSA in 2000 grew to 28-county MSA in 2010, per US Census)

Georgia

US (on some key factors)

Coweta Area

Metropolitan Area (MSA)

20 miles

Coweta County’s population experienced significant population gains between 2000-2009Population growth projected to continue

Population

Area 2000 2010% Change2000-2010

2015 Projected

% Change2010-2015

Coweta 89,215 129,842 45% 147,717 14%

Coweta Area 1,234,494 1,570,790 27% 1,730,972 10%

Atlanta MSA 4,247, 981 5,611,180 32% 6,180,206 10%

Georgia 8,186,453 10,014,045 22% 10,762,778 7%

US 281,421,906 308,745,538 10% 321,085,000 14%

Population year 2000 and 2010, US Bureau of the Census Population years 2010 and 2015, ESRI Market ProfilesUS population 2015, US Bureau of the Census (assumes constant net internal migration)

Population Trends

Percentage of Coweta County residents that are of working-age is less than the regional and state averages

Percentage <18 years exceeds the regional and state averages

Age

Source: Population year 2000, US Bureau of the Census Population years 2010 and 2015, ESRI Market Profiles

10%65%25%Georgia

9%65%26%Atlanta MSA

10%66%24%Coweta Area

9%63%28%Coweta

65+ years18-64 years< 18 yearsArea

Age Distribution 2010

87% of Coweta County residents 25 years and over are high school graduates, comparable to the regional averages

24% have a bachelor’s degree or higher, which is less that the region

Education

*25 years and over

Source: ESRI Forecast

27%83%Georgia

34%87%Atlanta MSA

40%87%Coweta Area

24%87%Coweta

Bachelor’s degree

or higher

High School graduateor higher

Area

High School Graduates 2010*

Good measure of economic growth and vitality

Coweta County’s median household income is higher than Coweta Area and Georgia

Household Income

AreaMedian

Household Income

Coweta $66,939

Coweta Area $63,093

Atlanta MSA $68,100

Georgia $56,184

Source: ESRI Forecast

Median Household Income 2010

Global, domestic and local economies were impacted by economic decline for past few years. US experienced a recession.

Coweta County – Unemployment rate less than Coweta Area, MSA, Georgia, and US

Labor Force 2010

Area Labor Force Employed Unemployed Unemployment Rate

Coweta 58,192 53,145 5,047 8.7%

Coweta Area 706,778 636,635 70,243 9.9%

Atlanta MSA 2,639,158 2,384,284 254,874 9.7%

Georgia 4,655,643 4,206,896 48,747 9.6%

US 153,652,000 139,749,000 14,140,000 9.0%

Labor Force and Employment 2010

Source: Georgia Department of Labor

Coweta County: Consistently lower unemployment rates in comparison with the region and state

Unemployment Rates

Unemployment Rates

Source: Georgia Department of Labor

Area 2000 2005 2008 2009 2010

Coweta 3.2% 4.8% 5.7% 9.5% 8.7%

Coweta Area 3.4% 5.6% 6.5% 10.0% 9.9%

Atlanta MSA 3.1% 5.2% 6.2% 9.6% 9.7%

Georgia 3.5% 5.2% 6.2% 9.6% 9.6%

US 4.0% 5.1% 5.8% 9.3% 9.0%

Primary measure of economic vitality is job creation

Coweta County: Positive gains, even with economic decline

Job Growth 2000-2009

Jobs 2000 - 2009

Source: Georgia Statistics System, University of Georgia

Area 2000 2005 2009% change 2000-2005

% change 2005-2009

Coweta 27,006 30,073 30,267 11.4% 0.6%

Coweta Area 917,135 906,461 861,463 -1.2% -5.0%

Atlanta MSA 2,134,648 2,185,953 2,114,935 2.4% -3.2%

Georgia 3,913,547 3,933,307 3,799,790 0.5% -4.0%

While Coweta County jobs have increased, impacts of recession are seen in several sectors. The decline in manufacturing reflects a national trend.

Local Jobs By Industry

Sector Jobs2000

Jobs 2009 Change

% Change 2000 - 2009

Other Services 417 675 258 61.9

Leisure and Hospitality 2,788 4,034 1,246 44.7

Education & Health Services 4,959 6,611 1,652 33.3

Financial Activities 751 970 219 29.2

Trade, Transport, Utilities 6,553 7,913 1,360 20.8

Information 469 535 66 14.1

Construction 1,379 1,476 97 7.0

Professional BusinessServices 2,778 2,088 -690 -24.8

Manufacturing 5,257 3,925 -1,332 -25.3

Nat. Resources/ Mining 150 99 -51 -34.0

Public Administration 1,204 282 -922 -76.6

Total 26,705 28,608 1,903 7.1

Georgia Statistics System, University of Georgia (www.georgiastats.uga.edu).For descriptions of sectors see NAICS Reference File (www.census.gov/eos/www/naics) and the US Bureau of Labor Statistics Census of Employment and Wages (www.bls.gov/cew).

PART 2:Economic Development SWOT Analysis

• Companies can choose from an increasingly large number of locations in the US and abroad for their expansions / new investment

• Competition from cities, counties, states and countries is intense

• SWOT = Strengths, Weaknesses, Opportunities, Threats We assess Coweta County from the eyes of a site selection decision-

maker

We rate the factors that will impact Coweta County’s economic development success

We offer recommendations to consider to take advantage of strengths and opportunities, and mitigate identified weaknesses

SWOT Analysis - Strengths

SWOT Analysis Summary

•Proximity to Atlanta•Highway Transportation•Airports•Railroads•Economic Base•Land•Electric Power•Natural Gas•Water•Wastewater

•Workforce•Wage Rates•K-12 Education•Colleges, University•Coweta Development Authority•Business/ Economic Dev. Climate•Local Taxes•Collaboration With State•Health Care•Quality of Life

SWOT Analysis - Weaknesses

SWOT Analysis Summary

• Business Fees

• Economic Development Incentives

• Environmental (Air Quality Nonattainment)

• Perception “Southside”

• Services and Amenities

• Limited Sites

• Work Ethic

• Public Aware of Education As Economic Development Asset

SWOT Analysis - Opportunities

SWOT Analysis Summary

•Newnan-Coweta Airport•Hospitals (Marketing)

•Land•Target Industries

SWOT Analysis - Threats

SWOT Analysis Summary

•Limited Marketing•Increasing Competition•Global Vision Needed

•Few ED Tools•Window of Opportunity

•Decline In Tax Revenue(real estate values)

SWOT Analysis - Recommendations

SWOT Analysis Summary

•Target Industry Strategy•Marketing Plan•Value Proposition•Enhanced Incentives

•Labor Force Soft Skills•Newnan-Coweta Airport•Public Awareness

PART 3:Target Industry Analysis

• What is target industry analysis? A strategic tool for identifying specific “target” industries to recruit and

retain, to strengthen a region’s economy

A strategic elimination process – eliminates industries not meeting the criteria for a local marketing effort/do not match the locational assets of the community

Integral component of a successful cost-effective economic development marketing program

Target Industry Analysis

• Begins with an understanding of the area’s competitive strengths

• Extensive data analysis, supported by: Confidential interviews

Review of previous documents/reports

Our familiarity with the region and state

Our combined location analysis and economic development expertise

Target Industry Analysis - Objectives

• Recommend industrial sectors and specific industries that capture Coweta County desires, and reflect best practices More technology-based, knowledge industries

New economy, growing, clean industries

Diversification, not only supply chain / distribution

High value-added, high wage jobs

Bring wealth into the community

Target Industry Analysis - Criteria

• Location Factors How the locational requirements of industries match up with Coweta

County’s economic development strengths and competitive advantages

• Concentration Presence / relative representation of the industry (based on

employment), calculated as Location Quotients

• Growth Industry’s employment growth trend in the US and the State

Target Industry Analysis - Criteria

• Diversification and New Economy Reflect a mix of diversified industries, with reliance on technology

• Wages and Skills Industries should create good-paying jobs for local residents

• Export Oriented Industries should export products and services to markets outside

Coweta County and bring new wealth and income into the community

Target Industry Recommendations

Cluster Sectors and Industries NAICS Code

Advanced Manufacturing •Plastics products manuf.•Agriculture, construction & miningmachinery manuf.

•Industrial machinery manuf.

32613331

3332

Automotive and Vehicle Parts Manufacturing

•Motor vehicle parts manuf. 3363

Health Care Services •Medical laboratories•Diagnostic imaging centers

621511621512

Warehouse and Distribution •Warehousing and storage•Durable goods merchant wholesalers•Non-durable goods merchant wholes.•Other industries not classified (Kmart, etc.)

493423424

Data Centers and Management &Technical Consulting Services

•Data processing, hosting & related services•Management, scientific & technicalconsulting services

51825416

Example - Target Industry Wages and EmploymentAdvanced Manufacturing Wages and Employment In Georgia

Plastics Products Manufacturing (3261) – Annual Wage

Plastics Products Manufacturing (3261) – Employment

Agriculture, Construction & Mining Machinery (3331) – Annual Wage

Agriculture, Construction & Mining Machinery (3331) – Employment

PART 4:Organizational Assessment

• Coweta County Development Authority – Responsible for economic development in Coweta County (1966) Business attraction and retention

Internal expansion and new business start-ups

5 member volunteer Board, appointed by County Commission

7 member volunteer Board, Development Authority of Coweta County, established by legislation in 1973

• 3 major programs Marketing

Existing Industry

Recruitment and Expansion

Organizational Assessment

• Economic development stakeholders and partners Coweta County government Municipal governments in Coweta County Georgia Department of Economic Development and other departments

and agencies that are part of state government Newnan-Coweta Chamber of Commerce Economic Prosperity Council Georgia Power, Atlanta Gas Light, and other utilities Newnan-Coweta Airport Authority Central Educational Center West Georgia Technical College University of West Georgia Georgia Tech Newnan-Peachtree Employer’s Committee Shenandoah Property Owner’s Association Business community, hospitals, and other employers Coweta County Convention and Visitor’s Bureau

Organizational Assessment

• Economic development marketing budget Should be based on priority goals, strategies, actions in a marketing plan

Budget will need to be increased if Development Authority is to implement more full-fledged and competitive marketing program

Recommendation: Economic development marketing plan with stipulated budget is necessary

• Staff Economic development marketing is personal and involves establishing and

maintaining relationships

Additional demands and opportunities will dictate the need, type and timing to add additional qualified, experienced, professional staff

Existing staff, Greg Wright and Brenda Washington, work well together and present a good team

Organizational Assessment

• Economic development climate Interviewees believe this is much better than in the past

o Result of improved relationships between Development Authority and Chamber, among others

More collaboration and trust

Existing relationships growing stronger; New ones being formed

Development Authority: earned leadership role in economic development

o Current leadership credited for improved and healthier climate

Other local organizations understand their respective roles in economic development and implementing these

Overall Assessment

• Local economy is relatively healthy

• Governance has low tolerance for risk, but performs well

• Many strengths to draw upon

• Several suitable target industries to be pursued

• Through implementation of the recommendations in this report, the Development Authority and economic development partners will likely produce better results in 2011 and beyond.

Questions and Answers Questions and Answers

Joan HerronPresident

HERRON [email protected]

Robert PriceDirector

HERRON [email protected]

Atlanta, Georgia404.815.7613