RURAL ECONOMIC DEVELOPMENT A NEW APPROACH. Luke Holtschneider – Missouri DED Alan Spell – MERIC Dr. Sean Siebert – Invent Yourself, LLC Presenters: 2.

RURAL ECONOMIC DEVELOPMENT

A NEW APPROACH

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Luke Holtschneider – Missouri DEDAlan Spell – MERIC Dr. Sean Siebert – Invent Yourself, LLC

Presenters:

Luke HoltschneiderRural Development Liaison

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2015 Governor's Conference on Economic Development

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Rural Challenges

Population loss Deteriorating infrastructure Limited access to broadband Distance to health care Lack of high-tech talent – “Brain Drain”

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Underdog Story

Place focus where it will benefit most Realistic expectations of potential outcome Build upon existing assets both

locally and regionally Utilize all available resources True understanding of current

situation

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Secretary of Agriculture, Tom Vilsack

“I have reached the conclusion that we must overhaul our approach to economic development in rural America. The framework of the new effort recognizes that the rural economy of tomorrow will be a regional economy. No one community will prosper in isolation.”

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Approaches to Rural Development

Asset-Based Regionalism Strong community and regional identity Engaged business and community

leaders both locally and regionally

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Asset-Based Economic Development

Identify Evaluate Strategize Build upon existing local and regional resources

Natural resources Local institutions Existing infrastructure Historic and cultural resources Industry cluster Human capital

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Asset-Based Benefits

Local return on investment Job creation and retention Long-term, sustained economic growth Increase in local tax base Strengthening regional networks

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Best Practices for Creating Rural Economic Vitality

1. Shop Local – Think Local – Support Local2. Business Retention and Expansion3. New Business Start-ups4. Downtown Revitalization5. Tourism6. Farmer’s Markets7. Support Entrepreneurs

Source: Rural Development Initiatives, 2014

Alan SpellResearch Manager, MERIC

2015 Governor's Conference on Economic Development

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Understanding Assets:Starting with Data…

Socioeconomic MeasuresIndustry TrendsInfrastructureWorkforceEntrepreneurship

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Population Trends Age Income Employment

Crawford County:

Socioeconomic Measures

Population: 24,650Median Age: 40.7 (MO 38, US 37.3)Median HH Inc.:

$36K (MO $47K, US $53K)Census Bureau: http://factfinder.census.gov

Crawford County, Missouri

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Metro and Non-Metro Context

Population and Income Measures

Headwaters Economics (US Forest Service): http://headwaterseconomics.org/tools/economic-profile-system

Area 2000 2013 Change % Chg.Metropolitan USPopulation 241,035,121 274,427,460 33,392,339 14%Personal Income* $10,715,659 $12,906,262 $2,190,602 20%Non-Metro USPopulation 45,201,471 46,609,359 1,407,888 3%Personal Income* $1,423,692 $1,727,780 $304,087 21%

Non-Metro MissouriPopulation 1,480,214 1,556,587 76,373 5%Personal Income* $43,337 $52,870 $9,533 22%Crawford CountyPopulation 22,828 24,543 1,715 8%Personal Income* $677 $848 $170 25%

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Metro and Non-Metro Context

Employment MeasuresHeadwaters Economics (US Forest Service): http://headwaterseconomics.org/tools/economic-profile-system

Area 2000 2013 Change % Chg.Metropolitan USWage and Salary Jobs 121,466,930 126,590,791 5,123,861 4%Number of Proprietors 22,660,177 34,294,278 11,634,101 51%Non-Metro USWage and Salary Jobs 17,945,007 17,523,464 -421,543 -2%Number of Proprietors 5,520,284 6,445,152 924,868 17%

Non-Metro MissouriWage and Salary Jobs 560,056 549,831 -10,225 -2%Number of Proprietors 221,005 230,827 9,822 4%Crawford CountyWage and Salary Jobs 6,431 6,987 556 9%Number of Proprietors 3,924 4,443 519 13%

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What Industries Make Up Your Economy? Crawford County

Employment by Sector

Employment % Emp.Industry 6,434 100%Natural Resources and Mining 30 0.5%Construction 209 3%Manufacturing 2,011 31%Trade, Transp., and Utilities 964 15%Information 65 1%Financial Activities 253 4%Prof. and Business Services 257 4%Education and Health Services 1,054 16%Leisure and Hospitality 540 8%Other Services 114 2%Federal Government 33 0.5%State Government 99 2%Local Government 805 13%

Manufacturing Employs

3 out of 10:Double Non-Metro US Manufacturing’s 14%.

Relatively Lower Natural Resources

& Gov. Employment

Compared to U.S. Non-Metro (4% and 19% respectively)

Headwaters Economics (US Forest Service) and BLS Quarterly Census of Employment and Wages: http://headwaterseconomics.org/tools/economic-profile-system

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Crawford County: Printing Services (Paramount Apparel) Wood Products (Whiskey Barrels)

St. Louis Metro Business Services (Corp. HQ & Data) Education Financial Services Transportation Equip. Mfg. Upstream Metal Mfg. Biopharm. and Downstream Chem.

Rolla Micro Distribution, Transportation, Logistics Downstream Chem.

Statewide Electrical Equip. Mfg. (Meramec Elect.) Printing Services

Industry and Company SpecializationWhat Sets You Apart and Links You to Other Areas...

Cuba Chamber and U.S. Cluster Mapping (EDA): http://www.clustermapping.us/

Crawford Co. Employment Specialization

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Route 66, Mural City Ozark Scene, Rivers and Camping

Industry Specialization: Tourism

Location Quotient Calculator (BLS): http://data.bls.gov/location_quotient/

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Economic Centers Transportation

Population in 15-Minute* Drive of 4-Lane Hwy: 91% All Population 78% Non-Metro Population *12 Miles used to estimate drive time.

Broadband

InfrastructureMissouri has 6th Largest Highway System

Four-Lane Highways, Cities +10K Pop. with Buffer

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Commuting offers Income and Opportunities Over 60% of Employees Leave Crawford Co. for

Work

Workforce

On-the-Map (Census): http://onthemap.ces.census.gov/

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Higher Education Providers 5 Institutions w/in 50 miles of Cuba: 1,762 BA+ Awards in 2013/2014 1,706 AA Awards in 013/2014

62 Computer/IT AA (IES College Navigator, 2-4Yr Only)

Occupations 87,500 Occupations in 6-Co. Area (DED – MERIC)

Job Seekers 4,800 active jobs.mo.gov in 6-Co. Area (DED – Div. of Workforce and MERIC)

WorkforceCrawford County and 30 Mi. Radius of Cuba

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Many Rural Counties have Higher Concentrations of Proprietors & Business Formations

Entrepreneurship

Breadth: Many Counties are Concentrated in ProprietorsNon-Farm Proprietors / Total Non-Farm Employment2014 Business Formations

https://www.missourieconomy.org/pdfs/new_business_formations_2014.pdf

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Census Non-Employer Statistics and EMSI Estimates

Crawford County and 6 Surrounding Counties: 7,100 Self-Employed Top Industries:

27% Personal and Social Services 24% Construction 10% Admin. Services (Landscape, Janitorial, etc.) 7% Retail Trade 6% Professional / Tech

Mostly Local Services – How Do You Spur More…(Stay Tuned!)

Entrepreneurship

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Other Resources

SocioEconomic Indicators:Headwaters Economics (US Forest Service): http://headwaterseconomics.org/tools/economic-profile-systemStats America (EDA): http://statsamerica.org/FactFinder (Census): http://factfinder.census.gov/

Industry Trends and Strengths: Industry and Workforce Trends (Census/BLS): http://qwiexplorer.ces.census.gov/U.S. Cluster Mapping (EDA): http://clustermapping.us/County Explorer (NACO): http://explorer.naco.org/

Education Providers:IES College Navigator: http://nces.ed.gov/collegenavigator/

Entrepreneurship: County Business Patterns (Census): http://www.census.gov/econ/cbp/Self Employed (Census): http://www.census.gov/econ/nonemployer/

Commuting:On-the-Map (Census): http://onthemap.ces.census.gov/

MERIC ReportsRegional Industry Analysis: https://www.missourieconomy.org/regional/industry_analysis.stmRegional Labor Analysis: https://www.missourieconomy.org/regional/labor_analysis.stmRegional Top Job Ads and Long-Term Openings: https://www.missourieconomy.org/customer/statewide.stmRural Missouri Asset Mapping: https://www.missourieconomy.org/pdfs/rural_mo_asset_mapping.pdf

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Free, Powerful Data Tools Available Go Regional to Understand Bigger Picture Resources Available

Missouri Partnership Department of Economic Development MERIC University of Missouri Extension

MEDC Oct. Conference: Moving from Data to Decisions

Data Takeaways

Adopt An Innovator

An Economic Development Strategy of Community Development through

Entrepreneurship & Innovation

Dr. Sean Siebert

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Adopt An Innovator Areas of Focus

(1) Enhance the education of the workforce.

(2) Directly link education in the region to economic development in the region.

(3) Establish a base of startup ventures.

(4) Accelerate the growth of existing enterprise.

(5) Create a culture of innovation.

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Aug/Sept 2014 Met w/ 20+ largest employers in the region

Oct/Nov 2014 Adopt An Innovator Entrepreneurship Program

Dec 2014 Youth Innovation Summit

Jan/Feb 2015 Adopt An Innovator Entrepreneurship Program

Feb 2015 Manufacturer/Employer Consortium Luncheon

Mar/Apr 2015 Adopt An Innovator Entrepreneurship Program

Mar/Apr 2015 Bourbon HS Ag Tech Park Project

May 2015 HS Entrepreneurship Tour

May 2015 Adopt An Innovator Program Celebration

Jun 2015 Adopt An Innovator Luncheon

Jun 2015 Launch Osage Trail Legacy Project

July 2015 Rural Innovation Pitch Competition

Aug 2015 Manufacturer/Employer Consortium Luncheon

Sept 2015 National Medical Billing Inc. Opens

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