Saturday, November 14, 2009

Upstate group hopes to triple visits from economic development prospects

By Mike Ellis
Friday, November 13, 2009

ANDERSON — Hal Johnson III thinks that by 2015 his marketing organization can triple the number of economic development prospects that visit the 10-county Upstate region each year.

“Actually I’ll be extremely disappointed if we only have 120 prospects coming in per year,” said Johnson, the president and chief executive of Upstate Alliance.

The reason he is expecting such a dramatic increase is today’s roll-out of a targeted industry study that identifies the most likely types of companies that would locate in the area. About 150 business and community leaders came to Tri-County Technical College to hear about the proposal.

“This is the most targeted marketing strategy in the world for marketing agencies,” Johnson said.

Advanced materials, automotive, biosciences and the energy sector are the four target industries that Johnson’s organization has identified as a result of the study.

South Carolina Commerce Department Secretary Joe Taylor was in Anderson on Monday at a meeting with county economic development and real estate officials. He said target market studies were a waste of resources and he would advise economic developers to pursue “anyone who is breathing and has a driver’s license.”

When asked about that, Johnson said his group’s study narrowed down a small number of industries so that targeted Web sites and individualized messages could be made. But Johnson said the core message of the study is to build awareness of the region.

Burriss Nelson, Anderson County’s interim economic development director, said the study would help him identify specific companies to go after.

“There’s some stuff already on the radar screen, things we may have some contacts with already,” Nelson said.

He also said Anderson County has 11,000 unemployed people so his staff is doing everything it can to bring in any type of company.

Sunday, November 08, 2009

Shuttered factories pose big challenges for communities

By Josh Brown
The Virginian-Pilot
© November 8, 2009

After the wood chippers go still and the boilers cool, the International Paper mill outside of Franklin will join a growing list of closed local factories.

Nearly 4 million square feet of factory space across the region is dormant or scheduled to close, not including International Paper's plant, which will add hundreds of thousands of square feet to the market when it closes next spring.

In Norfolk, Ford Motor Co.'s 2.6 million-

square-foot assembly plant has sat vacant for more than two years. Chesapeake Hardwood Products Inc. closed last year, and its 452,000-square-foot plywood plant is up for sale. And Smithfield Foods Inc. plans to close a 413,000-square-foot meatpacking facility in its hometown early next year.

Shuttered factories pose big challenges for communities in lost jobs, tax income and often blight, yet they also offer opportunities for redevelopment.

But the latter is a difficult proposition.

Unlike cookie-cutter warehouses, factories are designed and built for the purpose of producing a specific product. Everything from the layout to land use has a purpose and may not lend itself to modification. The same goes for machinery, which is often highly specialized and expensive to remove or alter.

Add to that the recession and credit crunch that have reined in

developers who redevelop factory land for other uses such as office and shopping space or even residences, and it becomes even more difficult to for cities to get unused factories back to work.

After a company has decided to close a factory, it sometimes takes months or years to decide whether to sell, demolish or hold onto the plant - much to the chagrin of economic development officials eager to find a way to use it to create new jobs.

"Here's the rub: The highest and best use most of the time is the same use, whether it be paper production or food production," said Worth Remick, a vice president with the Norfolk office of real estate firm CB Richard Ellis. "And so the buyer would most likely be a competitor of International Paper or Smithfield. Are these sellers essentially creating more competition or assisting competition, or are they just getting rid of buildings that aren't contributing to the bottom line?" More.

New Bedford emerging as cleantech leader

By CHARIS ANDERSON
canderson@s-t.com
November 08, 2009 12:00 AM

NEW BEDFORD — Efforts by city officials to position the city as a "cleantech" hub have started to pay off, and many industry experts say the city could see a burst of economic activity over the next several years.

"Is there going to be a 1,500-person, thin-film manufacturing facility in New Bedford tomorrow? No," said John DeVillars, a partner at Blue Wave Strategies, an advisory company to renewable energy projects.

"Can New Bedford, over the course of several years, develop a cleantech economy that employs several thousand of its citizens?" he asked. "I believe it can."

The city first zeroed in on the economic potential of the cleantech industry several years ago, said Matthew Morrissey, executive director of the New Bedford Economic Development Council.

Cleantech is a broad term that covers a range of emerging industries and technologies related to alternative or renewable energy and energy efficiency.

"We know that our traditional manufacturing base will continue to decline," Morrissey said. "We are acting right now to stem those losses we know are coming."

Cleantech was one of several industries city officials identified that matched up well with New Bedford's assets, including its geographic location and its existing work force, and that had considerable support from private investors and the government, according to Morrissey. More here.

Water as a Economic Advantage

Water can make this region attractive for further economic development. Local officials should make use of those advantages.

Posted: Nov. 5, 2009

Milwaukee Mayor Tom Barrett is touting an idea that could help economic development in the region by being smarter about attracting businesses. Use the area's best natural asset - a plentiful supply of clean water - to appeal to firms in other parts of the country or globe where water may be scarce or more polluted or expensive.

The idea would be to create so-called Wave districts, for "water attracting valued employers," where new businesses could be offered low-cost or free water in return for job-creating investment. The proposal - credited to Rich Meeusen, chief executive of Badger Meter Inc., a Brown Deer-based maker of water meters - came up at a recent conference at Marquette University on the economics of water.

It's an idea that deserves strong follow-up.

"This is our comparative advantage," Barrett said at the conference. "We have to sell on our comparative advantage. We cannot sell our winter weather." Well, we could, but how many businesses cater to penguins, polar bears and other snow lovers?

That big body of water off of Lincoln Memorial Drive is the region's greatest natural asset and offers tremendous untapped potential as an economic development tool.

Work is proceeding on developing Milwaukee as a hub for the water technology industry. The University of Wisconsin-Milwaukee wants to create a freshwater science school that could tie into that industry as well as develop research on what's been called the 21st century's most critical resource.

And the region can use the promise of cheap and plentiful water to lure businesses and family-supporting jobs, especially in Milwaukee, where the water utility is running under capacity.

Although the concept of using water as an economic development tool is in its early stages, Barrett said it could be in place as soon as a year from now. The Milwaukee Water Council, a trade group that aims to coax growth out of the region's cluster of water-technology companies, discussed the idea two weeks ago with the state Public Service Commission, the agency that approves water rates.

Some existing businesses may complain that newcomers will get an unfair advantage on water rates, but Meeusen has the right answer: "If we can attract additional businesses, it benefits everybody."

It's time to move on this issue. We've been told by a federal official that the Milwaukee area appears to be better organized and ahead of the curve on water issues compared with most other Great Lakes metro regions. Using water as an economic development tool can keep us there. Let's start creating those Wave districts.

A look at Fairfax County's globetrotting chief marketer

Economic Development Authority's Gordon travels
the world in search of business

by Gregg MacDonald | Staff Writer

In his capacity as Fairfax County's head promoter, Gerald Gordon lives an exotic life.

As president of the 45-member Fairfax County Economic Development Authority, Gordon, 58, frequently travels both the country and the globe, singing the county's praises and promoting it as a place for domestic, foreign and multinational businesses to set up shop.

"I once lived in a tree for a week in Yap, Micronesia," he told Northern Virginia business leaders at a Tower Club Tysons Corner breakfast last month. "I also spent two weeks in Vieques, Puerto Rico, where the U.S. Navy tests its bombs by dropping them from airplanes. That was cool. It was the only time I ever was assigned bodyguards."

When he's back home, Gordon is generally known for two things: his offbeat sense of humor and his razor-sharp business development acumen.

"If Gerry wasn't the director of FCEDA, he could be one of the original Marx Brothers," said Larry Rosenstrauch, director of the Loudoun County Department of Economic Development.

On a more serious note, Rosenstrauch says he should pay Gordon for marketing the entire region to interested businesses. "When they come to Fairfax County, they are inclined to poke around and see the neighbors," he said, referring to Loudoun. "We tend to think of Gerry and the FCEDA in terms of regional cooperation and not direct competition."

"Gerry Gordon has stood the test of time as one of the longest-serving economic development directors in the Commonwealth," added Jeff Anderson, Executive Director of the Virginia Economic Development Partnership, the state's economic development marketing office. "He is an accomplished professional who is highly regarded in the economic development community, nationally and internationally."

Gordon, a Citadel graduate with a doctorate in International Economics from Catholic University, has been representing the FCEDA for 26 years and serves at the request of its seven-member board.

Board members are appointed by the Fairfax County Board of Supervisors and serve four-year terms. The Authority receives an annual $6.7 million budget, which so far has not been impacted by county budgetary issues.

Part of the reason Gerry is such a good fit for the position is his skill at making Fairfax County accessible to outsiders, said Fairfax County Board of Supervisors Chairman Sharon Bulova.

"Gerry is a great communicator and a master at telling the Fairfax County story in a way that attracts business," Bulova added.

For Gordon, working on the ever-changing economy is "pretty simple" — and under his leadership, Volkswagen America, Hilton Hotels Inc., and Science Applications International Corporation have all moved their corporate headquarters in the past few years to Fairfax County, bringing thousands of jobs to the area.

When asked about the effects of bringing more people into a county with already infamous transportation issues, Gordon jokes: "The board of supervisors is product development; I'm marketing."

On a serious note, however, Gordon says the county once offered only two employment options: either "work for the federal government or leave town."

"Since then we have become the place where ‘the next great thing' is done," he added.

Today, Gordon says that translates into a handful of cutting-edge technology industries, such as nano-technology, bio-science and personalized medicine, and bio-technology. "Fairfax County's labor force is well-educated and ready for the next great thing," he said. "The average resident has at least a college education."

According to Gordon, the county's future economic success will also include the development of minority, women-owned and internationally owned businesses. There are already 360 foreign-owned businesses in the county, currently employing 20,000 people, "but we can always use more," he said.

The one thing he says he worries about is a reported trend that federal agencies are cutting back on outsourcing dollars and opting to insource in an effort to keep spending down. "That could hurt Fairfax County," he said.

But overall, the economic future of the county looks bright, according to Gordon. In his best Groucho Marx imitation, he remarks: "The best thing we ever did was to locate ourselves next to Washington, D.C."

Leaders look to develop 'brand’ for Greenwood

By CHRIS TRAINOR/ ctrainor@indexjournal.com
Wednesday, November 4, 2009 9:09 AM EST
What is Greenwood’s calling card?

Is it the people? The schools? Sports? Industry? The medical community? The churches? Wildlife and natural resources? All of the above and more?

These are questions that are being considered this week by numerous local leaders and representatives of town planning, economic development and community branding consulting firm Arnett Muldrow and Associates.

Arnett Muldrow is meeting this week with different clusters of community leaders to develop a singular “brand” for the Greenwood area. This brand would ultimately be conveyed in the signage throughout Greenwood and on literature and marketing material that is used to help market the county to prospective industry and retail establishments that might look to set up shop here.

Partnership Alliance director of communications Julie Miner said Greenwood’s brand would reflect to outsiders what the area is about.

“We have put together a task force, a core marketing task force,” Miner said. “That task force met with (Arnett Muldrow representatives on Monday) and they are going to meet with them again (today) to see the preliminary look and to see if we think it is on track with what we are looking for. That task force is made up of professionals from Piedmont Tech, Lander, Self Regional, Park Seed, Partnership

Alliance, the Greenwood Chamber, the (Greenwood Regional Tourism and Visitors Bureau), Countybank, Fujifilm, Wesley Commons and others. There’s a good representation there. Those are people who are on the front line that have to sell Greenwood.”

On Monday, consultants met with numerous governmental leaders at the Federal Building, including Greenwood city manager Charlie Barrineau, Greenwood County manager Vic Carpenter, assistant county manager Thessa Smith, members of Greenwood City Council, state Sen. Billy O’Dell, Piedmont Tech president Ray Brooks, District 50 superintendent Darrell Johnson and others.

“Companies and private enterprises have been doing branding for a long time,” Arnett Muldrow’s Tripp Muldrow said. “When you see the apple on the back of a computer or see Mickey Mouse’s ears, that promotes a whole set of feelings and thoughts about a company you might engage in business with. A community brand is very much that same thing, except, unlike a company where a CEO said, ‘This the brand, this is it,’ a community almost has to be a ‘bottom up’ process.

Muldrow said his company’s task is to look at an image for Greenwood. “We are not looking at the city or downtown necessarily. It is really an overall community brand.”

The consultants asked those present to share their ideas about what makes Greenwood unique. Brooks said Greenwood’s location and natural resources are a key selling point.

“One thing that is interesting to me is that people will ask, ‘How long does it take to get to Columbia from Greenwood?’ About an hour,” Brooks said. “They ask, ‘How long to get to Greenville?’ About an hour. ‘How long does it take to get to Augusta?’ About an hour. Really, I have been amazed that there a lot of things that are within a short distance. You’ve got access to health care. I think two things that attract a lot of the retirees here are the golf courses and the fact that they like the water and recreational opportunities, whether it be fishing or boating.”

Smith said she thinks people from outside the community connect Greenwood with the Festival of Flowers.

“Basically, a lot of times when I talk about Greenwood, people want to relate Greenwood to the Festival of Flowers or Park Seed,” Smith said. “That’s their point of reference. Also, from an innovative standpoint, our bio park, people relate us to that. We’ve also got the best lake in the state.”

Carpenter said that Greenwood is a county that likes to enjoy itself.

“This is a town that knows how to have fun,” the county manager said. “Our festivals are world class festivals. And we’ve got numbers of them, not just one per year. They range from the Festival of Flowers to the Festival of Discovery to the music festivals, Click 646, the Catfish Feastival and Ninety Six with its Fourth of July festival. Friday night football, it’s as American as it gets, in that respect. This town knows how to have fun and it does it very well.”

Johnson said he thinks Greenwood’s new brand should celebrate the resources available here.

“Whatever you want, we have right here,” the superintendent said. “It is possible (in Greenwood) to get a first class education, from 2 years old all the way through a Master’s degree, along with all the recreation, along with everything in the medical field. The hospital, the Genetic Center — we have it all right here. Sometimes, I think we take for granted the positives we have here.”

Tuesday, November 03, 2009

No-Win Situation: Region Could Not Keep SAIC

No-Win Situation: Region Could Not Keep SAIC
By MIKE ALLEN - 11/2/2009
San Diego Business Journal Staff

When SAIC Inc. said it was leaving San Diego for a suburb of Washington, D.C., most of the region’s business leaders barely blinked.

For the past several years, it was common knowledge among top insiders that the $10 billion engineering and research firm, one of the area’s largest employers, was going to relocate its headquarters east to be closer to its primary customers, the federal government and the Department of Defense.

But despite this knowledge, the San Diego Regional Economic Development Corp., a publicly and privately funded agency focused on retaining and attracting companies to the area, did not make a formal proposal to persuade the company, also known as Science Applications International Corp., to maintain its headquarters in the University City area.

Julie Meier Wright, chief executive at the EDC, said she had several discussions with SAIC officials over the years, but there was never a formal package of incentives presented. She said the discussions, some that included Mayor Jerry Sanders, made it clear that SAIC intended to move to the Washington, D.C., area to be closer to its customers, and there wasn’t anything that could change that decision.

“There was really nothing, with the tools we have in California, that we could have done,” Wright said of the move, announced Sept. 24.

At the announcement of the relocation, Virginia Gov. Timothy Kaine said the state offered $7 million in incentives, plus $1.5 million for road improvements, to accommodate SAIC’s expansion of existing offices in McLean, Va., where about 17,000 employees already work.

The move will initially result in about 20 corporate positions moving to Virginia. SAIC has about 4,300 employees in San Diego, including about 900 corporate staff members.

SAIC spokeswoman Laura Luke said the company relocated its headquarters so it could be closer to its federal government customers, and to have its corporate executives in the same place.

“SAIC’s decision was unrelated to the business climate in California, and in particular to San Diego, where we have always had excellent support from local business and political leaders and organizations, and expect this to continue,” Luke said.

Several local business leaders said California and the region should be trying harder to keep major corporations from moving elsewhere.

“I think it’s important that San Diego and the state of California do whatever it can to retain a company as much as it does to attract companies to come here,” said Ted Owen, president and CEO of the Carlsbad Chamber of Commerce.

Yet most interviewed for this story said SAIC’s decision to relocate was made years ago, and nothing could have dissuaded it from moving its top executives east.

In June, SAIC hired Walter Havenstein to succeed retiring Ken Dahlberg as chief executive and president of the 40-year-old firm started by J. Robert Beyster.

Havenstein is a former chief operating officer of BAE Systems, which is based in Rockville, Md., also a suburb of Washington.

Ruben Barrales, president of the San Diego Regional Chamber of Commerce, said SAIC’s formal announcement to relocate its headquarters wasn’t surprising.

Barrales said the decision makes good business sense since SAIC’s main customers are in Washington.

He said the decision to move the headquarters had nothing to do with the state’s high taxes or excessive regulatory burdens.

“It was an internal business decision on how they can better relate to the decision makers who are so critical to the growth of their business,” he said.

Duane Roth, CEO of Connect, a nonprofit technology trade group, and a member of the EDC’s board of directors, said SAIC’s relocation couldn’t have been prevented by any sort of package of incentives, even though no such package had been offered.

“This had nothing to do with incentives,” Roth said. “There wasn’t anything to work with. Sometimes decisions are made and they are what they are.”

Wright said while it was disappointing to lose a Fortune 500 corporation, SAIC’s top executives have assured her that the company’s commitment in terms of community involvement and philanthropic activity in San Diego won’t change.

Wright reiterated that the EDC had ongoing discussions with SAIC executives about the relocation, and that the gist of its message was that the relocation was not a matter of if it would happen, only about when it would occur.

“We stayed in constant dialogue with them and had candid conversations with their executives. But at the end of the day, we were told there was nothing we could do to influence this decision,” she said.

5 counties promote data center corridor

By John Dayberry | Hickory Daily Record

Published: October 28, 2009

Maiden - Scott Millar said establishing an information technology corridor stretching northwest from Charlotte could transform the region's economy.

"Partnering with Caldwell, Burke, Alexander and Iredell counties to market this to the world may give all the counties new business opportunities," said Millar, president of the Catawba County Economic Development Corp.

On Tuesday and Wednesday, Millar and other economic development officials from the five counties outlined plans for a North Carolina data center corridor during a marketing event that attracted nearly 40 U.S. site selection consultants specializing in data center locations.

Each of the participating counties has available sites suitable for data center development.

On Wednesday, participants in the third Data Center Information Exchange gathered at the future site of Apple's $1 billion data center in Maiden.

Construction is under way on the project, the first phase of which is expected to be up and running by late 2010.

Site Selection Magazine, a nationally recognized publication, recently acknowledged a region anchored by financial data centers in Charlotte, Apple in Catawba County, Google in Caldwell County and the state's data center in Rutherford County as an emerging data center cluster that is attracting attention within the industry.

Data Center Knowledge, a Web site that specializes in information for the industry, recently ran an article on the clustering of data centers and referred to the "Apple-Google Data Center Corridor."

North Carolina is also the top state in which to build a data center, according to a report by Tishman Technologies Corp., a New York-based construction management firm.

Tishman rated the state highly for low energy cost, favorable labor conditions and fiber optics infrastructure.

The five-county corridor builds on those advantages with a lack of extreme weather conditions, easy access to major airports and a high quality of life, Millar said.

"This new clustering, along with the well-established communications companies in the corridor — CommScope, Corning Cable Systems and Draka — provides us with a huge marketing opportunity," Millar said.

Harry Whalen, director of the Economic Development Commission of Caldwell County, agreed.

Whalen said the region has the potential to be "the next Quincy," referring to Grant County, Washington, and the success that region has had recruiting data centers.

Whalen said that like fast-food restaurants, data centers tend to cluster.

"When you see a McDonald's, you'll often see a Burger King," he said.

A data center is a facility used to house computer systems and associated components, including telecommunications and storage systems.

California-based Google opened a $600 million data center in Caldwell County in 2008.

When Apple announced plans for its $1 billion Maiden data center in July, economic development officials saw magnified potential for a data center corridor in the region.

Apple's arrival in the region also heightened interest on the part of site selection consultants from New York, Chicago, Atlanta, Washington, D.C., and other cities, Millar said.

Attendance at the Data Center Information Exchange blossomed.

"Eight (consultants) came the first year, 18 came last year and 38 came this year," Millar said.

"We're getting attention."

Monday, November 02, 2009

Sun Belt loses some glow for graduates

Many are turning to tech-based cities, census data show

By Associated Press
Wednesday, October 28, 2009

Many college graduates are passing up the Sun Belt and industrial centers, which have been hit hard by the recession, in favor of life in urban, high-tech meccas. Such moves are fueling a resurgence in parts of California, North Carolina and Texas.

Census data released Tuesday offer the first detailed look at U.S. migration information, broken down by education and income, since the recession began in late 2007.

The data covering 2006 to 2008 show that Austin; Portland, Ore.; Charlotte; Raleigh, N.C.; and Seattle had large jumps in residents with at least a college degree. San Francisco, with its burgeoning biotech industry, and Houston, home to NASA and several medical centers, had significant increases in residents with advanced-level graduate degrees.

In contrast, metropolitan areas with high rates of foreclosures, fewer tech-based economies or increasing unemployment had declines or slower rates of growth in residents with a college degree or higher. They included Los Angeles, Atlanta, Orlando, New Orleans, Detroit and Cleveland.

"During this economic downturn, young, educated professionals are heading for the high-tech 'cool' metros rather than the fast-growing upstarts of the mid-decade," said William H. Frey, a demographer at the Brookings Institution who analyzed the American Community Survey data. "The investment in knowledge industries and young professional amenities in places like Austin, Raleigh and Seattle is now paying off."

According to the data, cities with higher levels of education did not always have the highest incomes.

Austin, Seattle and Charlotte had large gains in the number of residents who made $65,000 a year or more. But they were outpaced by places such as Bakersfield, Calif., and Sun Belt communities such as Phoenix and Las Vegas, which had larger jumps in richer residents.

Frey attributed the differences to younger college graduates in the high-tech areas who are moving up the career ladder and have not reached their peak levels of income.

The information was collected over three years, from every U.S. community with at least 20,000 residents.

Sunday, November 01, 2009

Local leaders say Boeing plant will spur economic development across the state

By Patricia Burkett | WBTW Anchor/ Reporter

Boeing’s decision to land a new aircraft assembly plant in South Carolina should mean thousands of jobs beyond the plant’s walls.

On Friday, Gov. Mark Sanford signed an incentive package that includes $170 million in low-interest loans used to lure Boeing to the Palmetto State.

State Senate President Pro Tempore Glenn McConnell said he expects two to three spinoff jobs for each of the 3,800 Boeing hopes to create in seven years.

Construction begins in November and it will take about 2,000 workers to build the new plant in North Charleston, near Charleston International Airport.

State Sen. Hugh Leatherman of Florence said he had been in talks with Boeing officials for the past six to seven weeks. He said he even continued speaking with Boeing officials during his recent overseas economic development trip to Asia.

Leatherman said he and McConnell spoke with a Boeing executive about what South Carolina had to offer, and assured the company official the Palmetto State would be the appropriate spot for its new facility.

“The two of us met, talked about what Boeing had to offer, what South Carolina could offer and sort of put together a tentative package,” Leatherman said.

Leatherman said he then found out that Boeing officials decided to take South Carolina up on its offer and locate the plant in North Charleston.

The announcement will permanently alter the course of economic development in the state, Leatherman said.

“We can’t imagine, we just can’t imagine ... it will change the economic landscape in this state forever. I don’t think any of us at this point in time can really imagine or evaluate the economic impact this will have on our state,” he said.

In terms of economic impact, the plant will not only provide thousands of jobs in the Charleston area, but some economic development leaders say it could help them entice future companies.

“Having such a large win that you can tout, I think it raises the eyebrows of other companies,” North Eastern Strategic Alliance Executive Director Jeff McKay said.

McKay said those prospective companies will be saying, “If Boeing did this, what is there that made them make that decision and should we be looking there as well?”

Though McKay said he doesn’t know yet how the plant will directly impact the Pee Dee and the Grand Strand, he does know it will only have positive effects on economic development across the state.

“I think it’s a tremendous win for the state and it’s definitely something that we as an economic development community will tout as the reason why companies should consider the state of South Carolina for their business expansion or opportunity,” he said.

Leatherman said the plant will create more jobs across the state in offshoot companies, just as other major plants have done in the past.

“We know up in Greer where BMW located, they have about 5,000 jobs but it created about 20,000 spin-off jobs for suppliers, vendors and things of that nature,” Leatherman said.

Economic leaders and lawmakers say they worked hard to recruit Boeing, and now Boeing will turn to South Carolina’s workforce to help make the company a success.