by Barry Silverstein
August 24, 2009 issue
brandchannel.com
In a February 2009 ranking of Swiss brands by Interbrand, the top five brands were, in order of brand value, Nescafé, UBS, Nestlé, Credit Suisse and Zurich. Other globally recognized brands in the top 20 included Rolex, Omega, Lindt, Swatch and Longines.
How did a tiny country largely known for keeping to itself become such a branding powerhouse? It starts with Switzerland’s view of its own brand.
The inherent value of “Swiss made” brands is so high that the country’s government is currently considering new laws to protect it: “The government wants to replace vague laws with concrete rules to crack down on abuses of ‘made in Switzerland’ and Swiss cross labels” (“Protecting ‘Swiss made’ brand divides opinion,” swissinfo.ch, April 6, 2008). The movement is known in Switzerland as “the legislation project Swissness.”
Interestingly, the notion of “Swissness” is a cause for concern among some Swiss brands. New laws being considered would potentially make it legal to use the well-known Swiss cross (white on a red field) as a marketing tool but restrict the Swiss coat of arms to government use only. Victorinox, maker of the Swiss Army Knife, has used both the Swiss cross and the coat of arms for 100 years. Touring Club Switzerland has used the coat of arms since 1896. Their brands would be directly affected if this new rule were to be implemented.
The fact that the Swiss government is wrestling with revising its intellectual property laws says something: This is a country that clearly understands the value of branding. In fact, Switzerland’s Federal Department of Foreign Affairs (FDFA) publishes a comprehensive corporate identity manual for Brand Switzerland because “a focused and strong brand definition is necessary for successful positioning in the international market.” The FDFA sees Switzerland’s values and character as moving from the present characteristics, “reliable, precise, exclusive, rich, beautiful, and neutral,” to the future characteristics, “trustworthy, premium quality, and authentic.”
More here.
Sunday, August 30, 2009
Saturday, August 29, 2009
Fond du Lac tries to keep Mercury Marine headquarters
Fond du Lac officials are presenting a united front in an attempt to convince Mercury Marine to keep its corporate headquarters in the Fox Valley, even if more than 800 manufacturing jobs are shifted to Stillwater, Okla.
Mercury Marine president Mark Schwabero plans to meet today with leaders of the International Association of Machinists and Aerospace Workers (IAMAW) Local 1947, the labor union for manufacturing employees at the Fond du Lac-based company.
The company said it will be willing to listen to overtures by the union until midnight on Saturday, Aug. 29. However, the company has said it will not alter the terms of its final offer, which was overwhelmingly rejected by union workers on Sunday.
Meanwhile, a joint statement was issued today by Allen Buechel, Fond du Lac County executive; Tom Herre, Fond du Lac city manager; and Brenda Hicks-Sorensen, president, Fond du Lac County Economic Development Corp.:
"Emotions are running high throughout Fond du Lac County and the City of Fond du Lac today as we look at the possibility of life, for the first time in a long while, without Mercury Marine as our largest employer. The recent developments may permanently alter the corporate landscape and economic climate of our city, county, region and state.
"As we look to our future, it is important that we take a look at the events leading up to today. Conversations first began with Mercury Marine this past spring, and those of us at the table were asking the same soul-searching questions others have been asking and having the same conversations. Is the company being fair? Is this truly the only option?
"We did our homework and our due diligence and know without a doubt that doing all we can to keep Mercury Marine in the location in which it has flourished is the right thing to do - not just for the company - but for our people, communities, our county and the State of Wisconsin.
"The process which took place proved the earnest motivations of those at the table. There were many points along the timeline where the potential existed for the process to take another direction, but everyone worked together to show that the city, the county, the state and all involved were sincere about keeping Mercury Marine in Fond du Lac. We worked closely with the company throughout the past several months to develop a total incentive package that would have assured Mercury Marine stay in Fond du Lac for a minimum of 12 years. This package included new engine development; the relocation of the Stillwater Oklahoma manufacturing positions to Fond du Lac; and an incentive payment to IAM workers. Fond du Lac County Economic Development Corporation worked with the State of Wisconsin, Fond du
Lac County and the City of Fond du Lac to build two legs of the three-legged stool.
Unfortunately, the third leg wasn’t able to be put into place. This is not the fault of any single entity. The marine industry has changed significantly due to the economic downturn, and some tough decisions have had to be made all around. Now, we need to look forward.
"While the possibility does exist for the retention of manufacturing jobs through midnight on Saturday, Aug. 29, our focus must now be on the future. Our efforts will be directed to keeping the corporate headquarters of Mercury Marine - and the 800 associated jobs - here in Fond du Lac. We are planning to present a package to the company that addresses this important goal. Beyond this, know that we will continue the effective economic development strategies and programs we have in place, fully support efforts to grow our existing business and bring in new business, and work together to come out of this stronger than before.
"As we focus our energies on how we move forward from here, we ask that everyone affected by this do the same and to stay positive. This is not a time to be divided by opinion, but to be united as we all work together for the future of the City of Fond du Lac and Fond du Lac County."
Wisconsin Gov. Jim Doyle said he is "disappointed by the vote. Mercury Marine is offering a remarkable opportunity to consolidate hundreds of jobs here in Wisconsin." Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.
Mercury Marine president Mark Schwabero plans to meet today with leaders of the International Association of Machinists and Aerospace Workers (IAMAW) Local 1947, the labor union for manufacturing employees at the Fond du Lac-based company.
The company said it will be willing to listen to overtures by the union until midnight on Saturday, Aug. 29. However, the company has said it will not alter the terms of its final offer, which was overwhelmingly rejected by union workers on Sunday.
Meanwhile, a joint statement was issued today by Allen Buechel, Fond du Lac County executive; Tom Herre, Fond du Lac city manager; and Brenda Hicks-Sorensen, president, Fond du Lac County Economic Development Corp.:
"Emotions are running high throughout Fond du Lac County and the City of Fond du Lac today as we look at the possibility of life, for the first time in a long while, without Mercury Marine as our largest employer. The recent developments may permanently alter the corporate landscape and economic climate of our city, county, region and state.
"As we look to our future, it is important that we take a look at the events leading up to today. Conversations first began with Mercury Marine this past spring, and those of us at the table were asking the same soul-searching questions others have been asking and having the same conversations. Is the company being fair? Is this truly the only option?
"We did our homework and our due diligence and know without a doubt that doing all we can to keep Mercury Marine in the location in which it has flourished is the right thing to do - not just for the company - but for our people, communities, our county and the State of Wisconsin.
"The process which took place proved the earnest motivations of those at the table. There were many points along the timeline where the potential existed for the process to take another direction, but everyone worked together to show that the city, the county, the state and all involved were sincere about keeping Mercury Marine in Fond du Lac. We worked closely with the company throughout the past several months to develop a total incentive package that would have assured Mercury Marine stay in Fond du Lac for a minimum of 12 years. This package included new engine development; the relocation of the Stillwater Oklahoma manufacturing positions to Fond du Lac; and an incentive payment to IAM workers. Fond du Lac County Economic Development Corporation worked with the State of Wisconsin, Fond du
Lac County and the City of Fond du Lac to build two legs of the three-legged stool.
Unfortunately, the third leg wasn’t able to be put into place. This is not the fault of any single entity. The marine industry has changed significantly due to the economic downturn, and some tough decisions have had to be made all around. Now, we need to look forward.
"While the possibility does exist for the retention of manufacturing jobs through midnight on Saturday, Aug. 29, our focus must now be on the future. Our efforts will be directed to keeping the corporate headquarters of Mercury Marine - and the 800 associated jobs - here in Fond du Lac. We are planning to present a package to the company that addresses this important goal. Beyond this, know that we will continue the effective economic development strategies and programs we have in place, fully support efforts to grow our existing business and bring in new business, and work together to come out of this stronger than before.
"As we focus our energies on how we move forward from here, we ask that everyone affected by this do the same and to stay positive. This is not a time to be divided by opinion, but to be united as we all work together for the future of the City of Fond du Lac and Fond du Lac County."
Wisconsin Gov. Jim Doyle said he is "disappointed by the vote. Mercury Marine is offering a remarkable opportunity to consolidate hundreds of jobs here in Wisconsin." Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.
Oregon Looks to Clean Tech for Revival
By RYAN KNUTSON
HILLSBORO, Ore. -- Oregon, facing the fourth-highest unemployment rate in the nation, has stepped up its campaign to lure clean-technology companies in an effort to pull itself out of the recession.
The Oregon Business Development Department's network of about 45 economic-development officials has more than doubled the time spent reaching out to clean-tech companies since 2008, said Bruce Laird, clean-tech recruitment officer in the department. In February, Oregon Gov. Ted Kulongoski assembled a group of industry leaders to help the state compete for federal stimulus dollars for clean-tech projects. And this month, he vetoed legislation that would have reduced tax breaks for clean-energy companies.
The endeavors come as Oregon tries to repair its battered economy. With declines in its key computer-manufacturing and timber industries, the state's 11.9% unemployment rate in July trailed only Michigan, Nevada and Rhode Island. In June, the state slashed its 2009-11 budget by $3.2 billion, or nearly 20%. Capturing clean tech is "viewed as essential for Oregon's economic recovery," Mr. Laird said.
While acknowledging a "greater sense of urgency" currently, Mark Brady, the sustainable development liaison in the Business Development Department, pointed out that the state's efforts date to at least 2005.
As a result, Oregon's incentives for attracting clean-tech firms -- those that make alternative energy or energy-efficient products -- are among the most aggressive in the nation. The state's business energy tax credit funds 50% of a renewable-energy manufacturing facility's cost, up to a total credit of $20 million per project. That dwarfs similar incentives in states such as Hawaii, which caps credits at $2 million, according to the Database of State Incentives for Renewables and Efficiency. From 2006 to mid-2009, Oregon spent $386 million on tax credits for clean-tech companies, according to the state Energy Department.
"Oregon is one of the top three states in the country in terms of growing its clean-energy economy" along with Colorado and Tennessee, said Phyllis Cuttino, director of the Pew Environment Group's U.S. Global Warming campaign, a nonprofit that is part of the Pew Charitable Trusts.
According to a recent Pew study, Oregon had 19,000 clean-tech jobs in 2007, up 50% from 1998. About one of every 100 workers in Oregon works in the clean-tech industry, the largest percentage in the nation.
Oregon is particularly playing up its roots in computer manufacturing to attract clean-tech companies. That is because many skills used to make solar cells are akin to those used in computer manufacturing, said Desari Strader, executive director of the Oregon Solar Energies Industry Association, a trade group. Workers that have lost computer-manufacturing jobs need little training to begin in solar manufacturing, she said.
These days, such workers abound: As of June, employment in Oregon's computer and electronic manufacturing industry was down 6,000 workers from 2007 to 34,600, according to the state Labor Department.
Tony Caywood's career symbolizes that shift. In 1998, the technician was laid off by Japanese chip maker Komatsu Ltd., which shut its manufacturing site here in this Portland suburb that year. Oregon later offered $40 million in tax incentives to German solar-cell maker SolarWorld AG, which bought Komatsu's vacant plant in 2006.
Today, Mr. Caywood is back to work in the same building -- this time, making parts for SolarWorld's solar panels. "I never thought I'd be right back here," said Mr. Caywood, 51 years old, adding that he uses similar techniques to make solar cells as he did for chips.
Still, Oregon faces challenges as other states compete to expand their clean-tech industries. Oregon particularly lags in receiving venture-capital investment for clean tech, garnering $70 million in clean-tech venture funding between 2006 and 2008. That is in contrast to California, which led the nation with $6.5 billion, or Texas, No. 3 in the nation at $716 million, according to the Pew study. Overall, Oregon has 1,600 clean-tech businesses, fewer than Florida's 3,800 and New York's 3,300, according to the study.
Oregon's incentives weren't enough to secure Schott AG subsidiary Schott Solar Inc. The solar company last year chose to put a solar-component-making plant in New Mexico instead of Oregon. Chief Executive Gerald Fine said New Mexico gave the company a $14 million cash outlay and other financial incentives that he declined to detail. "We clearly thought the state of Oregon had a number of advantages," but "a financial analysis made the decision for us," Mr. Fine said.
SolarWorld, however, said Oregon's $40 million in tax credits, its trained work force and environmentally friendly policies helped it choose the state over Washington and California in 2006. Today, the company has about 500 workers in the old Komatsu plant and expects to double that work force by 2011.
"Oregon up to this point has been great," said Gordon Brinser, vice president of operations at SolarWorld Industries America.
Write to Ryan Knutson at ryan.knutson@wsj.com
Printed in The Wall Street Journal, page A5, August 28, 2009
HILLSBORO, Ore. -- Oregon, facing the fourth-highest unemployment rate in the nation, has stepped up its campaign to lure clean-technology companies in an effort to pull itself out of the recession.
The Oregon Business Development Department's network of about 45 economic-development officials has more than doubled the time spent reaching out to clean-tech companies since 2008, said Bruce Laird, clean-tech recruitment officer in the department. In February, Oregon Gov. Ted Kulongoski assembled a group of industry leaders to help the state compete for federal stimulus dollars for clean-tech projects. And this month, he vetoed legislation that would have reduced tax breaks for clean-energy companies.
The endeavors come as Oregon tries to repair its battered economy. With declines in its key computer-manufacturing and timber industries, the state's 11.9% unemployment rate in July trailed only Michigan, Nevada and Rhode Island. In June, the state slashed its 2009-11 budget by $3.2 billion, or nearly 20%. Capturing clean tech is "viewed as essential for Oregon's economic recovery," Mr. Laird said.
While acknowledging a "greater sense of urgency" currently, Mark Brady, the sustainable development liaison in the Business Development Department, pointed out that the state's efforts date to at least 2005.
As a result, Oregon's incentives for attracting clean-tech firms -- those that make alternative energy or energy-efficient products -- are among the most aggressive in the nation. The state's business energy tax credit funds 50% of a renewable-energy manufacturing facility's cost, up to a total credit of $20 million per project. That dwarfs similar incentives in states such as Hawaii, which caps credits at $2 million, according to the Database of State Incentives for Renewables and Efficiency. From 2006 to mid-2009, Oregon spent $386 million on tax credits for clean-tech companies, according to the state Energy Department.
"Oregon is one of the top three states in the country in terms of growing its clean-energy economy" along with Colorado and Tennessee, said Phyllis Cuttino, director of the Pew Environment Group's U.S. Global Warming campaign, a nonprofit that is part of the Pew Charitable Trusts.
According to a recent Pew study, Oregon had 19,000 clean-tech jobs in 2007, up 50% from 1998. About one of every 100 workers in Oregon works in the clean-tech industry, the largest percentage in the nation.
Oregon is particularly playing up its roots in computer manufacturing to attract clean-tech companies. That is because many skills used to make solar cells are akin to those used in computer manufacturing, said Desari Strader, executive director of the Oregon Solar Energies Industry Association, a trade group. Workers that have lost computer-manufacturing jobs need little training to begin in solar manufacturing, she said.
These days, such workers abound: As of June, employment in Oregon's computer and electronic manufacturing industry was down 6,000 workers from 2007 to 34,600, according to the state Labor Department.
Tony Caywood's career symbolizes that shift. In 1998, the technician was laid off by Japanese chip maker Komatsu Ltd., which shut its manufacturing site here in this Portland suburb that year. Oregon later offered $40 million in tax incentives to German solar-cell maker SolarWorld AG, which bought Komatsu's vacant plant in 2006.
Today, Mr. Caywood is back to work in the same building -- this time, making parts for SolarWorld's solar panels. "I never thought I'd be right back here," said Mr. Caywood, 51 years old, adding that he uses similar techniques to make solar cells as he did for chips.
Still, Oregon faces challenges as other states compete to expand their clean-tech industries. Oregon particularly lags in receiving venture-capital investment for clean tech, garnering $70 million in clean-tech venture funding between 2006 and 2008. That is in contrast to California, which led the nation with $6.5 billion, or Texas, No. 3 in the nation at $716 million, according to the Pew study. Overall, Oregon has 1,600 clean-tech businesses, fewer than Florida's 3,800 and New York's 3,300, according to the study.
Oregon's incentives weren't enough to secure Schott AG subsidiary Schott Solar Inc. The solar company last year chose to put a solar-component-making plant in New Mexico instead of Oregon. Chief Executive Gerald Fine said New Mexico gave the company a $14 million cash outlay and other financial incentives that he declined to detail. "We clearly thought the state of Oregon had a number of advantages," but "a financial analysis made the decision for us," Mr. Fine said.
SolarWorld, however, said Oregon's $40 million in tax credits, its trained work force and environmentally friendly policies helped it choose the state over Washington and California in 2006. Today, the company has about 500 workers in the old Komatsu plant and expects to double that work force by 2011.
"Oregon up to this point has been great," said Gordon Brinser, vice president of operations at SolarWorld Industries America.
Write to Ryan Knutson at ryan.knutson@wsj.com
Printed in The Wall Street Journal, page A5, August 28, 2009
Friday, August 28, 2009
Best Practices in Regional & Local Economic Development
Taimerica Management Commpany conducted an analysis of “best practices” in regional and local economic development during April-May 2009
Thirty “benchmark” organizations were identified to survey and interview. The development organizations were selected based on their reputations in the development industry, national awards they had received, reputations within the site selection industry, Taimerica’s consulting experience, and past growth that was above the national average for similar sized communities. Budget and salary information was collected for twelve regional organizations and subsidiaries they control, and from their IRS tax returns. This data was supplemented with a survey of Best Practices for the same organizations.
Eleven of the thirteen regional organizations completed some portions of the survey while six completed the entire instrument. For the local EDOs, thirteen of the 18 completed some portion of the survey while seven completed all of the questions. The survey was supplemented with interviews with a subset of the regional and local EDOs to collect more detailed data and to better understand innovative practices.
The report condenses Taimarica's findings about EDOs from all three information sources: interviews, surveys, and tax returns. Profiles for regional regional EDOs are presented first, followed by profiles on local EDOs. The report ends with Taimerica's conclusions about Best Practice EDOs and what accounts for their excellent performance. More here.
Thirty “benchmark” organizations were identified to survey and interview. The development organizations were selected based on their reputations in the development industry, national awards they had received, reputations within the site selection industry, Taimerica’s consulting experience, and past growth that was above the national average for similar sized communities. Budget and salary information was collected for twelve regional organizations and subsidiaries they control, and from their IRS tax returns. This data was supplemented with a survey of Best Practices for the same organizations.
Eleven of the thirteen regional organizations completed some portions of the survey while six completed the entire instrument. For the local EDOs, thirteen of the 18 completed some portion of the survey while seven completed all of the questions. The survey was supplemented with interviews with a subset of the regional and local EDOs to collect more detailed data and to better understand innovative practices.
The report condenses Taimarica's findings about EDOs from all three information sources: interviews, surveys, and tax returns. Profiles for regional regional EDOs are presented first, followed by profiles on local EDOs. The report ends with Taimerica's conclusions about Best Practice EDOs and what accounts for their excellent performance. More here.
Eleven Myths of Economic Development
Taimerica Management Company provides innovative answers to the location questions of states,communities and businesses worldwide.
During the course of their work they have uncovered information that sheds new light on some commonly held economic development beliefs.
Taimerica claims that our understanding of the factors that drive long term economic growth at the regional level is changing rapidly as newer data becomes available. Some of the assumptions that have governed economic development strategy over the last 30 years such as the dominant role of small business in employment growth, have been shown to be inaccurate.
Taimerica's recent article entitled "Eleven Myths of Economic Development" explores these misconceptions and provides a baseline of factual data that is critical to understanding their current reality in economic development.
During the course of their work they have uncovered information that sheds new light on some commonly held economic development beliefs.
Taimerica claims that our understanding of the factors that drive long term economic growth at the regional level is changing rapidly as newer data becomes available. Some of the assumptions that have governed economic development strategy over the last 30 years such as the dominant role of small business in employment growth, have been shown to be inaccurate.
Taimerica's recent article entitled "Eleven Myths of Economic Development" explores these misconceptions and provides a baseline of factual data that is critical to understanding their current reality in economic development.
Thursday, August 27, 2009
States go head-to-head to lure businesses
By Keith Matheny, USA TODAY
Las Vegas is running ads in California warning businesses they can "kiss their assets goodbye" if they stay in the Golden State.
In New Hampshire, economic development officials pick up Massachusetts business owners at the border in a limousine and give them VIP treatment and a pitch about why they should relocate there.
Indiana officials, using billboards at the borders and direct appeals to businesses in neighboring states, are inviting them to "Come on IN for lower taxes, business and housing costs."
As states struggle to keep jobs in a continuing recession, they are no longer hoping businesses in other states happen to notice their lower taxes, cheaper office space and less-stringent regulations. They are taking the message directly to them and taking shots at their neighbor's shortcomings.
"It's 'I win, you lose,' " said Philip Kotler, a marketing professor at Northwestern University's Kellogg School of Management in Illinois.
No one does it more unapologetically than the Nevada Development Authority. The agency has picked on California before, but its $1 million campaign, launched this month, ratchets up the mockery of California's budget deficits and IOU paychecks. "It's all done tongue-in-cheek. But the underlying deal is, we want this business," Nevada Development Authority President and CEO Somer Hollingsworth said.
Last week, California Assemblyman Jose Solorio launched a countercampaign.
"They do mask the nastiness of their message with humor, but this time, their ads are over the top," said Solorio, a Democrat from Santa Ana.
"What happens in Vegas stays in Vegas, but what happens in California makes the world go 'round," California's response ad states.
New Jersey's efforts to lure business from New York are as much defensive as they are offensive, New Jersey Gov. Jon Corzine said. "It's a shrinking pie, obviously," he said.
Kathryn Wylde, president and CEO of Partnership for New York City, a non-profit group, says New York can't pay everybody to stay in New York, "but New Jersey can pay them to come and create a new job."
Matheny reports for The Desert Sun in Palm Springs, Calif.
Las Vegas is running ads in California warning businesses they can "kiss their assets goodbye" if they stay in the Golden State.
In New Hampshire, economic development officials pick up Massachusetts business owners at the border in a limousine and give them VIP treatment and a pitch about why they should relocate there.
Indiana officials, using billboards at the borders and direct appeals to businesses in neighboring states, are inviting them to "Come on IN for lower taxes, business and housing costs."
As states struggle to keep jobs in a continuing recession, they are no longer hoping businesses in other states happen to notice their lower taxes, cheaper office space and less-stringent regulations. They are taking the message directly to them and taking shots at their neighbor's shortcomings.
"It's 'I win, you lose,' " said Philip Kotler, a marketing professor at Northwestern University's Kellogg School of Management in Illinois.
No one does it more unapologetically than the Nevada Development Authority. The agency has picked on California before, but its $1 million campaign, launched this month, ratchets up the mockery of California's budget deficits and IOU paychecks. "It's all done tongue-in-cheek. But the underlying deal is, we want this business," Nevada Development Authority President and CEO Somer Hollingsworth said.
Last week, California Assemblyman Jose Solorio launched a countercampaign.
"They do mask the nastiness of their message with humor, but this time, their ads are over the top," said Solorio, a Democrat from Santa Ana.
"What happens in Vegas stays in Vegas, but what happens in California makes the world go 'round," California's response ad states.
New Jersey's efforts to lure business from New York are as much defensive as they are offensive, New Jersey Gov. Jon Corzine said. "It's a shrinking pie, obviously," he said.
Kathryn Wylde, president and CEO of Partnership for New York City, a non-profit group, says New York can't pay everybody to stay in New York, "but New Jersey can pay them to come and create a new job."
Matheny reports for The Desert Sun in Palm Springs, Calif.
Sunday, August 23, 2009
Development must focus on '2nd Georgia'
Athens Banner-Herald | Story updated at 6:23 pm on 8/22/2009
If there's one thing this state's leadership needs to take away from a recent federal court ruling on Lake Lanier, it is that metropolitan Atlanta no longer can sustain any appreciable additional economic development.
In the ruling, occasioned by the continued wrangling of the states of Georgia, Alabama and Florida over the Chattahoochee River - impounded by Lake Lanier, which supplies much of metropolitan Atlanta with water - a federal judge has given the three states three years to come up with a plan for the river. Absent the development of such a plan, metropolitan Atlanta will be scaled back to 1970s-level withdrawals from Lanier.
That would be, effectively, a "death sentence" for the metro area. And even if some agreement can be reached with Alabama and Florida officials - with whom, it should be noted, officials in Georgia's downstate also have interests in common regarding use of the Chattahoochee - that agreement is likely to shackle metropolitan Atlanta severely in terms of the immediate availability of water. That will effectively stall the metro area's growth, and more importantly, take it off the table as a viable location for business and industrial expansion and relocation.
The options that likely will be left to metropolitan Atlanta in terms of boosting its water supply will be nothing if not extremely problematic.
For example, absent some significant streamlining of federal and state permitting processes, building new reservoirs in or around the metro area will take years. Frankly, that's time the metro area can't afford in the often fast-paced world of economic development.
A second option, piping water into Atlanta from other areas of the state, will be a political minefield. For years, the perception of state legislators and other officials outside the metropolitan Atlanta area has been that their infrastructure needs have been ignored in favor of building Atlanta into an economic development hub. That dynamic has helped create what are effectively "two Georgias" - Atlanta and everywhere else.
It's a dynamic felt as close to the metro area as Athens-Clarke County, which got comparatively little state help in an ultimately failed bid to attract a federal animal-disease research laboratory last year.
Candidly, it made sense for years for the state to concentrate infrastructure development and economic development initiatives in the metropolitan Atlanta area, given its obvious dominance over the rest of the state in terms of being a transportation hub with other amenities such as conveniently located suburbs, some cultural life and a number of institutions of higher education.
In recent years, though, the metro area has become a victim of its own success, as gridlocked roadways, crowded suburbs and, now, a potentially limited water supply, serve vividly to illustrate.
It is all but a foregone conclusion that if this state is to get its share of 21st-century jobs, economic development professionals - and, by extension, state legislators - are going to have to steer any new development outside the metropolitan Atlanta area.
Interestingly enough, for much of the state outside the metro area, water is not necessarily a problem. However, much of that area is lacking in other infrastructure - four-lane roads, airports and adequately funded schools, for example - that is just as necessary for top-quality economic development.
At this point, state officials should recognize that they have a couple of choices, one of which is really no choice at all. They can fight what will, in all probability, ultimately be a losing battle to keep metropolitan Atlanta viable as a center for economic development, or they can provide areas elsewhere in the state with what they need to become viable centers for such development.
In other words, state officials can go on a quest to find water that might keep the metro area a viable development locale for a little while longer, or they can spend money and effort on other infrastructure and turn all of Georgia into an attractive location for business and industrial expansion and relocation.
Originally published in the Athens Banner-Herald on Sunday, August 23, 2009
If there's one thing this state's leadership needs to take away from a recent federal court ruling on Lake Lanier, it is that metropolitan Atlanta no longer can sustain any appreciable additional economic development.
In the ruling, occasioned by the continued wrangling of the states of Georgia, Alabama and Florida over the Chattahoochee River - impounded by Lake Lanier, which supplies much of metropolitan Atlanta with water - a federal judge has given the three states three years to come up with a plan for the river. Absent the development of such a plan, metropolitan Atlanta will be scaled back to 1970s-level withdrawals from Lanier.
That would be, effectively, a "death sentence" for the metro area. And even if some agreement can be reached with Alabama and Florida officials - with whom, it should be noted, officials in Georgia's downstate also have interests in common regarding use of the Chattahoochee - that agreement is likely to shackle metropolitan Atlanta severely in terms of the immediate availability of water. That will effectively stall the metro area's growth, and more importantly, take it off the table as a viable location for business and industrial expansion and relocation.
The options that likely will be left to metropolitan Atlanta in terms of boosting its water supply will be nothing if not extremely problematic.
For example, absent some significant streamlining of federal and state permitting processes, building new reservoirs in or around the metro area will take years. Frankly, that's time the metro area can't afford in the often fast-paced world of economic development.
A second option, piping water into Atlanta from other areas of the state, will be a political minefield. For years, the perception of state legislators and other officials outside the metropolitan Atlanta area has been that their infrastructure needs have been ignored in favor of building Atlanta into an economic development hub. That dynamic has helped create what are effectively "two Georgias" - Atlanta and everywhere else.
It's a dynamic felt as close to the metro area as Athens-Clarke County, which got comparatively little state help in an ultimately failed bid to attract a federal animal-disease research laboratory last year.
Candidly, it made sense for years for the state to concentrate infrastructure development and economic development initiatives in the metropolitan Atlanta area, given its obvious dominance over the rest of the state in terms of being a transportation hub with other amenities such as conveniently located suburbs, some cultural life and a number of institutions of higher education.
In recent years, though, the metro area has become a victim of its own success, as gridlocked roadways, crowded suburbs and, now, a potentially limited water supply, serve vividly to illustrate.
It is all but a foregone conclusion that if this state is to get its share of 21st-century jobs, economic development professionals - and, by extension, state legislators - are going to have to steer any new development outside the metropolitan Atlanta area.
Interestingly enough, for much of the state outside the metro area, water is not necessarily a problem. However, much of that area is lacking in other infrastructure - four-lane roads, airports and adequately funded schools, for example - that is just as necessary for top-quality economic development.
At this point, state officials should recognize that they have a couple of choices, one of which is really no choice at all. They can fight what will, in all probability, ultimately be a losing battle to keep metropolitan Atlanta viable as a center for economic development, or they can provide areas elsewhere in the state with what they need to become viable centers for such development.
In other words, state officials can go on a quest to find water that might keep the metro area a viable development locale for a little while longer, or they can spend money and effort on other infrastructure and turn all of Georgia into an attractive location for business and industrial expansion and relocation.
Originally published in the Athens Banner-Herald on Sunday, August 23, 2009
Friday, August 21, 2009
Harley-Davidson considering Shelbyville move
Harley-Davidson is considering relocating its 2,300-worker motorcycle plant from York County, Pa., to Shelbyville to save money, company spokesman Bob Klein said Thursday.
Harley-Davidson is also considering Murfreesboro, Tenn., Kansas City, Kansas and Shelbyville, Ind., southeast of Indianapolis, Klein said.
The cost of managing an antiquated 235-acre site with 42 buildings, as well as unwieldy work rules, low productivity and problems with absenteeism have gotten too high, Klein said.
“We are very focused on making the tough decisions relative to the York operations,” Klein said.
While Harley-Davidson sales have declined along with the recession, Klein added “the fundamentals of the brand are strong” and the company is focused on strengthening the operation.
Threats to relocate from the historic Pennsylvania location amount to sabre-rattling as the plant's 2,035-person union work force approaches the expiration of a three-year labor agreement in February, said Tom Santone, business representative of Local Lodge 175 of the Machinist's union.
“There is no doubt the company is structuring itself for these upcoming negotiations,” Santone said. “It all leads to that. We are trying to see what we can do to restructure to keep the company here.”
Union workers assemble Harley-Davidson Softail and touring motorcycles in two plants in York County and earn roughly $23 per hour. A two-tier wage system, with lower earnings for entry level employees was instituted in the wake of a two-week strike at the York plants in 2007.
Pennsylvania is assembling a package of economic incentives, including $15 million to renovate the York plant, and funding for worker training, Michael Smith, a spokesman for Pennsylvania Gov. Ed Rendell, said in an interview Thursday.
“This is going to require everyone's cooperation,” Smith said of efforts to save the York region's largest employer. A labor management committee has been working on cost-cutting strategies since May, when Harley-Davidson first announced it was considering relocation, company and union officials said.
In talks with Pennsylvania officials, Harley managers have said “they are considering leaving Pennsylvania because of high operating costs and inefficiencies that are too great to make the company competitive,” Theresa Elliott, a spokesperson for the Pa. Dept. of Community and Economic Development said in an interview Thursday.
Harley Davidson currently operates a factory in Kansas City. Two engine and transmission facilities near company headquarters in Milwaukee, Wisc., are being consolidated into one, Klein added.
Libby Adams, executive director of the Shelby County Industrial Foundation, the county's economic development agency, declined to comment.
Reporter Jere Downs can be reached at (502) 582-4669.
Harley-Davidson is also considering Murfreesboro, Tenn., Kansas City, Kansas and Shelbyville, Ind., southeast of Indianapolis, Klein said.
The cost of managing an antiquated 235-acre site with 42 buildings, as well as unwieldy work rules, low productivity and problems with absenteeism have gotten too high, Klein said.
“We are very focused on making the tough decisions relative to the York operations,” Klein said.
While Harley-Davidson sales have declined along with the recession, Klein added “the fundamentals of the brand are strong” and the company is focused on strengthening the operation.
Threats to relocate from the historic Pennsylvania location amount to sabre-rattling as the plant's 2,035-person union work force approaches the expiration of a three-year labor agreement in February, said Tom Santone, business representative of Local Lodge 175 of the Machinist's union.
“There is no doubt the company is structuring itself for these upcoming negotiations,” Santone said. “It all leads to that. We are trying to see what we can do to restructure to keep the company here.”
Union workers assemble Harley-Davidson Softail and touring motorcycles in two plants in York County and earn roughly $23 per hour. A two-tier wage system, with lower earnings for entry level employees was instituted in the wake of a two-week strike at the York plants in 2007.
Pennsylvania is assembling a package of economic incentives, including $15 million to renovate the York plant, and funding for worker training, Michael Smith, a spokesman for Pennsylvania Gov. Ed Rendell, said in an interview Thursday.
“This is going to require everyone's cooperation,” Smith said of efforts to save the York region's largest employer. A labor management committee has been working on cost-cutting strategies since May, when Harley-Davidson first announced it was considering relocation, company and union officials said.
In talks with Pennsylvania officials, Harley managers have said “they are considering leaving Pennsylvania because of high operating costs and inefficiencies that are too great to make the company competitive,” Theresa Elliott, a spokesperson for the Pa. Dept. of Community and Economic Development said in an interview Thursday.
Harley Davidson currently operates a factory in Kansas City. Two engine and transmission facilities near company headquarters in Milwaukee, Wisc., are being consolidated into one, Klein added.
Libby Adams, executive director of the Shelby County Industrial Foundation, the county's economic development agency, declined to comment.
Reporter Jere Downs can be reached at (502) 582-4669.
Tuesday, August 18, 2009
Boeing potential move draws bad blood in Washington
Sanford weighs in on the trash-talking from the Evergreen State
by Dan McCue
Gov. Mark Sanford is taking on his first challenge after the summer scandal, addressing some trash-talking from Washington state. It's an all-out effort by bloggers, rank-and-file workers, and even minor political aspirants to belittle South Carolina out of fear that the next Boeing assembly line might have an 843 area code.
In the weeks since Boeing announced it would take over production of fuselages at the former Vought facility next to Charleston International Airport, it seems that all some can talk about in Washington is the Palmetto State's low wages, high unemployment, and perennially challenged educational system.
Hoping to benefit from the prevailing mood, Larry Phillips, a candidate for county executive in King County, Wash., which encompasses the City of Seattle, even made it the focus of a recent campaign ad.
After extolling the "virtues" of his home state, where, he says, "We're changing the way people read books," "We build transit on time and under budget," "We made coffee famous," and "We invested in commercial air travel and the personal computer," he concludes the riff with a pithy, "Let's see South Carolina do that."
Sanford says that the trash-talkers in the Evergreen State are underestimating South Carolina's appeal and the state's commitment to competing for the new assembly line.
"South Carolina last year was fourth in the nation in labor force growth, which points to the fact that a lot of people are moving to South Carolina because they believe in the opportunities that come with living here," Sanford says, noting the state saw a record $4.17 billion in capital investment last year.
Battling Union Forces, Again
At the heart of the current bashfest is something that's largely alien to South Carolinians: A standoff between one of Washington's cornerstone employers —Boeing — and a union — the International Association of Machinists.
Hanging in the balance is the site of a second production line for the 787 Dreamliner, a facility deemed critical to the aerospace giant's effort to ramp up production of the aircraft and salvaging its much-tarnished reputation after multiple delays in getting the aircraft quite literally off the ground.
A decision on the location of that plant is expected by the end of the year. In the meantime, Boeing is pushing for a no-strike deal from the union. The IAM's position is that there's no reason to reopen the current contract, which was signed only last fall — after a two-month work stoppage — and is scheduled to run through 2012.
To paraphrase from one of the scores of editorials that have appeared in Seattle area newspapers, anxiety at Boeing's Seattle operations and throughout the state's aerospace industry is nearing an ear-ringing pitch.
The situation went ballistic last month when Dreamliner General Manager Scott Fancher held a press briefing in Charleston at which he officially unveiled Boeing's logo on the side of its newly acquired fuselage facility.
Fancher said a decision on the new production line will be made soon, and seemed to suggest that Charleston was on the short list of possible non-Washington sites. Boeing has since declined to comment on those remarks.
On his company blog, Randy Tinseth, vice president of marketing for Boeing's commercial airplanes division in Seattle, sought to allay fears about a second Charleston facility.
"The answer is that our main priorities on the program right now are to work through the issues regarding the recently announced postponement of the 787's first flight and to implement the flight test program," Tinseth wrote. "After that, we will address the move toward production ramp up."
In the meantime, a worker at the North Charleston site filed a petition to decertify the union at the plant. In October 2007, workers at the then-Vought Aircraft facility voted narrowly in favor of representation by the International Association of Machinists and Aerospace Workers.
If a vote on that petition comes to pass — and the union loses — organized workers at Boeing's Everett, Wash., production facility would then be competing with non-union workers in South Carolina.
The union, which represents more than 150,000 aerospace workers throughout the country, would strongly oppose any effort to pit one state against another, says Machinist Union spokesman Robert Wood.
"A manipulated competition over which state can provide the largest tax incentives and the lowest labor costs does a disservice to workers and taxpayers in both states," he says.
Moving Target
Economic development types in Washington have been feeling somewhat skittish about Boeing ever since $63 million in state and local incentives lured the company's headquarters from Seattle to Chicago in 2001.
But the company has also repeatedly embraced the workers in Everett, starting with its decision to build its 747 there in 1966. Since then Boeing has launched two additional assembly line projects there, one for the 777 and the other for the 787 Dreamliner.
Among the factors the company says influenced its choice of Everett at that time were collaborative economic development efforts that focused on providing direct incentives to the company, and what at the time was seen as Washington state's renewed, business- friendly climate. Everett was also close to a round-the-clock port, available infrastructure to accommodate suppliers nearby, training partnership opportunities, and the more elusively defined "community support."
It's also worth noting that around the same time, the Washington state legislature committed $4.2 billion in infrastructure improvements.
North Charleston Mayor Keith Summey won't enter the trash-talking, but he notes Boeing bought the local Vought plant, "knowing that we had a great workforce, a great work ethic."
by Dan McCue
Gov. Mark Sanford is taking on his first challenge after the summer scandal, addressing some trash-talking from Washington state. It's an all-out effort by bloggers, rank-and-file workers, and even minor political aspirants to belittle South Carolina out of fear that the next Boeing assembly line might have an 843 area code.
In the weeks since Boeing announced it would take over production of fuselages at the former Vought facility next to Charleston International Airport, it seems that all some can talk about in Washington is the Palmetto State's low wages, high unemployment, and perennially challenged educational system.
Hoping to benefit from the prevailing mood, Larry Phillips, a candidate for county executive in King County, Wash., which encompasses the City of Seattle, even made it the focus of a recent campaign ad.
After extolling the "virtues" of his home state, where, he says, "We're changing the way people read books," "We build transit on time and under budget," "We made coffee famous," and "We invested in commercial air travel and the personal computer," he concludes the riff with a pithy, "Let's see South Carolina do that."
Sanford says that the trash-talkers in the Evergreen State are underestimating South Carolina's appeal and the state's commitment to competing for the new assembly line.
"South Carolina last year was fourth in the nation in labor force growth, which points to the fact that a lot of people are moving to South Carolina because they believe in the opportunities that come with living here," Sanford says, noting the state saw a record $4.17 billion in capital investment last year.
Battling Union Forces, Again
At the heart of the current bashfest is something that's largely alien to South Carolinians: A standoff between one of Washington's cornerstone employers —Boeing — and a union — the International Association of Machinists.
Hanging in the balance is the site of a second production line for the 787 Dreamliner, a facility deemed critical to the aerospace giant's effort to ramp up production of the aircraft and salvaging its much-tarnished reputation after multiple delays in getting the aircraft quite literally off the ground.
A decision on the location of that plant is expected by the end of the year. In the meantime, Boeing is pushing for a no-strike deal from the union. The IAM's position is that there's no reason to reopen the current contract, which was signed only last fall — after a two-month work stoppage — and is scheduled to run through 2012.
To paraphrase from one of the scores of editorials that have appeared in Seattle area newspapers, anxiety at Boeing's Seattle operations and throughout the state's aerospace industry is nearing an ear-ringing pitch.
The situation went ballistic last month when Dreamliner General Manager Scott Fancher held a press briefing in Charleston at which he officially unveiled Boeing's logo on the side of its newly acquired fuselage facility.
Fancher said a decision on the new production line will be made soon, and seemed to suggest that Charleston was on the short list of possible non-Washington sites. Boeing has since declined to comment on those remarks.
On his company blog, Randy Tinseth, vice president of marketing for Boeing's commercial airplanes division in Seattle, sought to allay fears about a second Charleston facility.
"The answer is that our main priorities on the program right now are to work through the issues regarding the recently announced postponement of the 787's first flight and to implement the flight test program," Tinseth wrote. "After that, we will address the move toward production ramp up."
In the meantime, a worker at the North Charleston site filed a petition to decertify the union at the plant. In October 2007, workers at the then-Vought Aircraft facility voted narrowly in favor of representation by the International Association of Machinists and Aerospace Workers.
If a vote on that petition comes to pass — and the union loses — organized workers at Boeing's Everett, Wash., production facility would then be competing with non-union workers in South Carolina.
The union, which represents more than 150,000 aerospace workers throughout the country, would strongly oppose any effort to pit one state against another, says Machinist Union spokesman Robert Wood.
"A manipulated competition over which state can provide the largest tax incentives and the lowest labor costs does a disservice to workers and taxpayers in both states," he says.
Moving Target
Economic development types in Washington have been feeling somewhat skittish about Boeing ever since $63 million in state and local incentives lured the company's headquarters from Seattle to Chicago in 2001.
But the company has also repeatedly embraced the workers in Everett, starting with its decision to build its 747 there in 1966. Since then Boeing has launched two additional assembly line projects there, one for the 777 and the other for the 787 Dreamliner.
Among the factors the company says influenced its choice of Everett at that time were collaborative economic development efforts that focused on providing direct incentives to the company, and what at the time was seen as Washington state's renewed, business- friendly climate. Everett was also close to a round-the-clock port, available infrastructure to accommodate suppliers nearby, training partnership opportunities, and the more elusively defined "community support."
It's also worth noting that around the same time, the Washington state legislature committed $4.2 billion in infrastructure improvements.
North Charleston Mayor Keith Summey won't enter the trash-talking, but he notes Boeing bought the local Vought plant, "knowing that we had a great workforce, a great work ethic."
Port Authority looks to actively market the area
COSHOCTON -- Port Authority Director T.J. Justice received approval last week from the Board of Directors to pursue an advertising campaign putting the county's name in front of more than 2,500 site selection consultants every couple of months.
After meeting with someone who works in the field, Justice learned mailing campaigns sending a pen or similar advertising item and periodic e-mails with items such as community newsletters are good reminders of a name.
"We just want to get our name in front of these site selection consultants," Justice said.
The Schooler Family Foundation grant last year specified a line item of $50,000 for marketing, for both Coshocton and Knox counties, Justice said.
A Web site -- coshknox.com -- will serve as a joint landing page for the Port Authority and Area Development Foundation of Knox County.
The board approved printing calendars that will share photos from both counties, plus mouse pads that will be sent out around the first of the year. The grant will also be used for postage.
American Electric Power awarded a $2,000 grant which Justice said will be used to update the Port Authority Web site.
"We don't receive phone calls like you would 10 years ago," he said. "Today, if someone wants to learn something about you, they go to your Web site. It's important we keep it fresh."
It's been about two years since the site was redesigned.
After meeting with someone who works in the field, Justice learned mailing campaigns sending a pen or similar advertising item and periodic e-mails with items such as community newsletters are good reminders of a name.
"We just want to get our name in front of these site selection consultants," Justice said.
The Schooler Family Foundation grant last year specified a line item of $50,000 for marketing, for both Coshocton and Knox counties, Justice said.
A Web site -- coshknox.com -- will serve as a joint landing page for the Port Authority and Area Development Foundation of Knox County.
The board approved printing calendars that will share photos from both counties, plus mouse pads that will be sent out around the first of the year. The grant will also be used for postage.
American Electric Power awarded a $2,000 grant which Justice said will be used to update the Port Authority Web site.
"We don't receive phone calls like you would 10 years ago," he said. "Today, if someone wants to learn something about you, they go to your Web site. It's important we keep it fresh."
It's been about two years since the site was redesigned.
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