A BlueprinT for suCCess - A MAster PlAn for econoMic redeveloPMent pot

the economic development coalition of southwest indiana edc retained a team led by garner economics, llc in late January of 2011 to develop a master plan for utilization of the former Wh

executive suMMArY | August 31, 2011

Table of Contents

introduction and Methodology 5

objectives 6

Approach 7

optimal industry targets 9

target industry Metrics 12

observations and recommendations 15

Product Marketing 16

Product improvement 18

organizational 24

regional economic development Metrics 26

conclusion 29

Board of directors 30

staff 31

executive suMMArY | August 31, 2011

the economic development coalition

of southwest indiana (edc) retained

a team led by garner economics, llc

in late January of 2011 to develop

a master plan for utilization of the

former Whirlpool manufacturing

site in evansville, indiana as a new

design and innovation technology

park along with other potential

educational and commercial

uses in April 2011, Whirlpool

corporation formally backed away

from the agreement with the

community to acquire the site when

it sold the property to a southwest

indiana developer though the

company cited better control of

redevelopment as the official reason

for the change, the issues that arose

from the plant closure remained the

same following the sale of the

former Whirlpool property, garner

economics was instructed to proceed

with reviewing alternative sites

for development with the primary

focus for the analysis following

the same criteria as proposed in

the original grant application to

the u s economic development

Administration

Introduction and Methodology

the scope of services included analyzing the regional economy, conducting an assets and challenges assessment of the region from the eyes of a site location consultant, recommending industry clusters and targets suitable for the region based

on the research and analysis, and providing a set of implementable recommendations that the stakeholders in the region can utilize

to enhance the economic well-being

of southwest indiana

the approach began with the consultant team conducting an

Assets and Challenges Assessment

of the region Many of the same criteria that site consultants use for corporate clients to evaluate communities for possible new investment were used for this assessment the assessment was both an objective and subjective evaluation of the community from the eyes of a site location consultant the Assets and challenges

Assessment allows for documenting what problems exist in the region that are barriers for successfully achieving the vision of its leadership

thE aSSEtS anD challEngES aSSESSmEnt allowS for DocumEnting what problEmS ExiSt in thE rEgion that arE barriErS for SuccESSfully achiEving thE viSion of itS lEaDErShip.

identify key strengths to emphasize

in economic development marketing

efforts, and; identify key weaknesses

that may limit investment in the

region so that remediation of these

local challenges may occur.

A multi-day windshield tour was

provided by edc representatives

to review those items that were

necessary for the consultant team

to evaluate and is outlined in the

full report this research then

supplemented the economic

analysis conducted to identify the

best possible opportunities for

business targets

Objectives

the consultant team then conducted

focus groups and interviews with

key stakeholders in the region this information provided an insightful overview of how local businesses and residents evaluate the business climate of the area eight focus groups were held over a two-day period with seventy participants

focus group categories included

large employers, small to midsized employers, elected/government officials, entrepreneurs/start-ups, financing/banking, academia/career development, and design/engineering

sixty-five (65) key demographic and economic indicators for the

region were evaluated as compared

to state and national trends, as well

as two benchmark communities: chattanooga, tennessee MsA and the davenport-Moline-rock island, iowa-illinois MsA these areas both have

or had a high concentration of similar industry specialization to the evansville region, and all three MsA’s have multiple states in their geography

Industry Specialization Input/Output Analysis Economic Impact Analysis

Product Marketing Product Improvement Organizational

Competitive analysis of the region to Chattanooga and Davenport Stakeholder input on the business climate of the region

Assets and Challenges of the region Real Estate portfolio analysis

Location Quotient Shift Share

Industry Specialization Input/Output Analysis Economic Impact Analysis

Product Marketing Product Improvement Organizational

8

optimal industry target selection

is based on the site-specific

characteristics of the evansville

(regional) economy using results

from past studies, the competitive

realities report, community Assets

and challenges Assessment, field

visits, and the Business climate

survey; four industry targets were

chosen that best match the unique

competitive advantages in the

evansville region to the needs of

particular industry sectors each

sector selected has a record of

above-average wages, projected

growth, and participation in

commercial activities that will create

wealth in the region, both in the short

and long term

Optimal Industry Targets

Prospects are particularly interested

in an established and skilled workforce, plus the region’s capacity

to supply newly trained workers, especially among higher-skilled occupations, so special efforts were made to link demanded occupations and training to southwest indiana’s workforce and supply pipeline

Because economies are dynamic and impossible to precisely predict, the four industry target areas offer opportunities across several non-competing sectors, affording

a means to diversify economic development strategies and avoid risky over-concentration

four inDuStry targEtS wErE choSEn that bESt match thE uniquE compEtitivE aDvantagES

in SouthwESt inDiana

plastics

process manufacturing

Process Manufacturing targets focus on high value

manufacturing practices, while leveraging southwest

indiana’s strong existing manufacturing sector presence

Process Manufacturing targets are organized into four

main groups: Auto Assembly and Related Assembly

Support, Machinery Manufacturing, Electronics

Product Manufacturing, and Food Processing each

group shares some similar workforce demands, but

retains its own unique product demand and outlook

profile for example, the Auto Assembly and Related

Assembly Support group is a definite area of potential

for the region the associated industry subsectors are

numerous and diverse, however both the Machinery and

Electronic Product Manufacturing groups may also be

participants in the sector; as well as products from the

Plastics Manufacturing.

the Plastics target recognizes a well-known strength

and area of established industrial specialization in the

evansville region As such, the required support structure

for the industry is already in place the targeting objectives

would be to leverage existing assets, strengthen the supply

chain, and increase the employment base As industry

clusters grow, so do opportunities for product innovation

and vertical integration, along with respective industry

wages innovations in plastics can also be exemplified

by the move towards bio-based products versus fossil

fuel southwest indiana has the necessary industrial

framework to become a leader in plastic technologies

the local Plastics cluster includes sixty firms and employs

more than 4,700; and, the industry earned the highest

number of mentions for “the best fit for the area” among

participants in the EDC of Southwest Indiana Business

Climate Survey as potential domestic prospects total

nearly 10,000 plastics firms

• Plastics & Rubber Industry Machinery Manufacturing

• Plastics Material and Resin Manufacturing

• Un-laminated Plastics Profile Shape Manufacturing

• Plastics Pipe & Pipe Fitting Manufacturing

• Urethane and Other Foam Product Manufacturing

• Plastics Bottle Manufacturing

• All Other Plastics Product Manufacturing

Auto Assembly & Related Assembly Support machinery manufacturing

• Mining and Oil and Gas Field Machinery Manufacturing

• Turbine and Turbine Generator Set Units Manufacturing

• Fluid Power Pump and Motor Manufacturing

electronic product manufacturing

• Broadcast and Wireless Communications Equipment

• Electronic Connector Manufacturing

• Industrial Process Variable Instruments Manufacturing

• Other Measuring and Controlling Device Manufacturing

• Mixes and Dough Made from Purchased Flour

• Other Snack Food Manufacturing

• Coffee and Tea Manufacturing

• Mayonnaise, Dressing, and Sauce Manufacturing

• Spice and Extract Manufacturing

Optimal Industry Targets – continued

Those items highlighted in blue indicate a high priority target for the EDC to pursue.

health/life Sciences

logistics & Distribution

the Logistics & Distribution target is supported by

southwest indiana’s central geographic location, its rich

modes of distribution, and the opportunity to leverage

the rapid transformation (and changing needs for reliable

delivery of services and products) occurring in global

logistics and supply chain management the evansville

region is set apart by its wide variety of distribution

means; east/west highway interstate, four rail lines,

commercial airport, and river port access this position

will improve with the completion of the north/south

interstate-69 these infrastructural assets and its

central location provide a strong basis to capture firms

that are participating in the fast developing sector of

supply chain management

the Health/Life Sciences target focuses on three major

areas of opportunity: Health Related Manufacturing,

Clinical Research, and Ag Technology All of these target

areas comprise sectors found within the more broadly

defined Life Sciences category and have areas of

cross-over the Health Related Manufacturing emphasis

builds off southwest indiana’s existing manufacturing

strengths and existing activity in Pharmaceutical

Preparation Manufacturing (employing nearly 2,000)

Clinical Research leverages the region’s present clinical

activities, and depth of specialized labor expertise; with

current occupation numbering more than 2,000, while

supplied by over 200 annual completions from local

educational institutions Ag Technology is based on

southwest indiana’s unique areas of industrial strength,

coupled with striking educational support from local

and regional institutions

health related manufacturing

• Medicinal and Botanical Manufacturing

• Pharmaceutical Preparation Manufacturing

• In-vitro Diagnostic Substance Manufacturing

• Other Biological Product Manufacturing

• Optical Instrument and Lens Manufacturing

• Surgical Appliance and Supplies Manufacturing

Clinical research/Ag Technology

• Research and Development in Biotechnology

• Research and Development in the Physical, engineering, and life sciences

• Research and Development in the Social Sciences and Humanities (clinical research)

• Medical Laboratories

• Scheduled Passenger Air Transportation (Air Service)

• Nonscheduled Chartered Passenger Air Transportation (charter Air service)

• Rail Transportation

• General Freight Trucking, Long-Distance, Truckload

• General Freight Trucking, Long-Distance, less than truckload

• Specialized Freight Trucking, Long-Distance

• Support Activities for Rail Transportation

• Port and Harbor Operations

• Marine Cargo Handling

• Navigational Services to Shipping

• Freight Transportation Arrangement

• General Warehousing and Storage

• Refrigerated Warehousing and Storage

• Process, Physical Distribution, and Logistics Consulting services

Because economies are dynamic and impossible to precisely predict, these four targets offer opportunities across several non-competing sectors, affording a means to diversify economic development strategies and avoid risky over-concentration though the justification for the targets should be clearly apparent and make sense to the average practitioner, it is important to specifically track the number of new investment opportunities that occur under each major target sector, as well as addressing issues critical for that success such as post-secondary graduate and talent retention

high School &

tech School graduates

• Number of New Direct

• Number of New Indirect

• Number of Graduates per Skill-set – Tied to Target Industry Requirements

Target Industry Metrics

• Number of In-bound Migration

• Number of Out-bound Migration

14

southwest indiana needs to focus

on several fundamental issues

of economic transition as well as

important internal and external

preparative steps before it can realize

its fullest potential as a dynamic,

regional economic center the

recommendations below provide the

steps to meet this challenge

recommendations for action are

categorized under three areas of

opportunity:

  • Product Marketing

  • Product Improvement

  • Organizational

the “product” is considered the

four-county southwest indiana region,

which comprises gibson, Posey,

vanderburgh and Warrick counties

or the edc’s market area

Observations and Recommendations

Product marketing is defined as marketing/promoting or selling the southwest indiana region worldwide for business development opportunities and investment

from these recommendations will flow a five-year strategic plan focusing on the three areas of opportunity in order for any plan to succeed, there will need to be a high level of commitment, collaboration and communication among the region’s public and private partners

to ensure clarity of vision and mission

so as to improve the southwest indiana economy

SouthwESt inDiana nEEDS to focuS on SEvEral funDamEntal iSSuES… bEforE

it can rEalizE itS fullESt potEntial aS a Dynamic, rEgional Economic cEntEr

Product marketing focuses on selling the region to the world and the specific recommendations made that are listed below are designed to help achieve that goal each recommendation carries with it a value grading system citing the economic impact, estimated project cost along with the cost to the edc in addition, each area of opportunity requires a wholly-integrated action team comprised of edc board members, executive committee members and staff coupled with key external target sector or community members specific target sector teams will be crafted to develop strategies addressing each area of opportunity

Survey the region

reCommenDATion

conduct a brand identity and image survey of the region

ApproACh

interview site location consultants, companies within the targeted industry

recommendations and clusters, and large existing employers

brand the community

reCommenDATion

create a unified brand identity for the region

ApproACh

Agree to a unified regional brand to promote the region’s brand awareness

Disseminate cultural assets

reCommenDATion

development of a marketing piece, both electronically and in print, to convey the

cultural assets of the region and to disseminate it both externally and internally

ApproACh

disseminate it both externally (out of market) and internally (within the region)

to convey the area’s assets related to activities

Product Marketing

HIGH eConomiC impACT

meDium projeCT CosT

meDium eDC CosT

HIGH eConomiC impACT

HIGH projeCT CosT

HIGH eDC CosT

meDium eConomiC impACT

meDium projeCT CosT

meDium eDC CosT

participate in high value trade Shows and trips

reCommenDATion

focus the edc’s external marketing efforts and trips on the highest value

trade shows and events for each cluster or target

ApproACh

utilize external expertise to identify the best of these events to attend

Enhance web positioning

reCommenDATion

enhance the edc’s already good website to position southwest indiana

as a national leader in key clusters

ApproACh

enhance the web site by adding the value proposition, noted in the section on

clusters, on why these specific clusters are good for the region and its value

proposition, recommendations and clusters, and large existing employers

create targeted focus groups

reCommenDATion

establish target industry working groups for each of the four focused targets

ApproACh

seek input into the knowledge of other business leaders within these clusters and

industry targets these business experts can help the edc craft specific messages

and marketing activities related to the clusters and their related targeted industries

meDium eConomiC impACT

meDium projeCT CosT

meDium eDC CosT

HIGH eConomiC impACT

meDium projeCT CosT

meDium eDC CosT

HIGH eConomiC impACT

low projeCT CosT

low eDC CosT