One to Think About...

Studies Look at Economic and Social Impacts of Casinos on Ohio

Casinos in Ohio could generate up to $4 billion in revenue annually while causing an additional 109,000 Ohioans to develop gambling problems, according to two studies commissioned by a business group released this week. The Greater Cleveland Partnership, an organization representing business in the region, partnered with several Cincinnati businesses to fund the studies.

Casinos would create 85,000 jobs and generate about $610 million in state and local tax revenue, according to one study by Strategic Partner Management Consulting. (Question: Did the study also measure the cost outlays and investments required to build this industry in Ohio? Another important issue is measuring the competitive effect that gaming will have on other forms of entertainment and recreational activities in Ohio.) Of course, the question is what type of jobs will be created. I've looked at the occupational data on casinos, and while some skilled and management jobs are involved, there are many low-skilled jobs.

The study, based on two hypothetical models of casino locations throughout the state, estimated that Ohioans would spend $2.975 billion at casinos, including the $925 million they spend at casinos in neighboring states now, and visitors would add approximately $1 billion. (Note: the key here is to get more out of state folks to bring their money to Ohio!)

Another study by the Maxine Levin Goodman College of Urban Affairs at Cleveland State University estimated that 252,000 Ohioans -- 3 percent of the state's adult population --already have a gambling addiction and that casinos in Ohio would add 109,000 problem gamblers. (My guess is that these 109,000 folks are already "oriented" to some type of gambling activity, such as the tracks, lotteries, and other "get-rich-quick" type activities, and they would just shift to casino games. Clearly, there is an impact. I just question the numbers.)

For more information of the studies, go to NewsNet5.com

Having worked with several Indian tribes on economic diversification and sustainability projects that included casinos, I can attest to the fact that: 1) all that glitters in the casino industry is not gold; 2) casinos are not an end in themselves from an economic development perspective; 3) the gaming and casino industry is growing increasingly competitive as everyone under the sun jumps into this game; and 4) look for industry overcapacity, lower profits, and a major industry shakeout.

Casinos need to be seen as economic generators in growing the larger surrounding Entertainment, Hospitality, and Tourism industry. My current work with a leading tribe points to the need for a very strategic approach to gaming. More on that one later.

Greater Cleveland Finally Gets Some Good Economic News

Communities across the country have been waiting to hear the Defense Department's latest decisions about DOD base and other facility closures.

Greater Cleveland officials were jubilant to hear that the Defense Finance (DFAS) Office, long a part of the local economy, will remain in place, retaining 1,000 existing jobs and hopefully attracting 500 new ones. Local economic development leaders worked very hard on this one. My congratulations to all who helped make this a reality.

On a sad note, the Mansfield area, just south of Greater Cleveland, will lose 1,000 jobs with the closing of its Air National Guard facility. On balance, it appears the NE Ohio region has broken even in the race to retain DOD-related jobs.

The DFAS office news is especially welcome in light of the long string of closures and relocations announced in the area over the past couple years. Not the least of which was the recent decision by Office Max to move its headquarters to the Chicago area.

Foreign Direct Investment Trends

In 2004, outlays by foreign direct investors to acquire or establish U.S. businesses rose significantly. Outlays were $79.8 billion, up 26 percent from 2003, when outlays were $63.6 billion. Outlays remained below those in 1998-2001, when new investment outlays were historically high, ranging from $147.1 billion to $335.6 billion.

Transactions of more than $5 billion continued to account for a sizable share of total outlays.In 2004, outlays in depository institutions (banking) increased sharply and outlays in other financial services industries continued to be large, as overseas banks and finance and insurance companies continued to seek access to the profitable and open U.S. financial market. Outlays in manufacturing rose substantially.

Outlays in information declined for the fifth consecutive year. Outlays by Canadian investors increased substantially and accounted for more than 40 percent of total outlays. Outlays from European investors were up slightly, as increases in outlays from the United Kingdom, Switzerland, and France were offset by decreases in outlays from Germany and other European countries. Outlays from Australia decreased. Outlays from Japan declined for the fourth consecutive year.

More here.

Native Nations Institute

The Native Nations Institute for Leadership, Management, and Policy (NNI) serves as a self-determination, self-governance, and development resource for Indigenous nations in the United States, Canada, and elsewhere.

Its programs address the challenges of nation building through Leadership and Management Programs, Policy Analysis and Research projects, and Strategic and Organizational Development for Native nations and organizations.

The Native Nations Institute is part of the Udall Center for Studies in Public Policy, a research and outreach unit at the University of Arizona organized under the Vice President for Research and Graduate Studies.

Philippine Call Centers

The call-center business in the Philippines will continue to grow robustly in the coming years, albeit at a slower pace than that of the past five years..

Bong Borja, president of PeopleSupport Inc. (PSPT) and a director of the Call Center Association of the Philippines, told a recent business forum that the industry is expected to grow seat capacity by 50% to 70% this year after ending 2004 with a total of 45,000 agent seats, equivalent to 72,000 jobs.

The local call-center business has grown exponentially since 2000, when this sector of the business process outsourcing industry had a capacity of 2,000 seats and employed 3,000 agents.

More here.

China and India's Role in Our High Gas Prices

With their growing economies thirsty for fuel, India and China as two rising powers are tussling with each other over energy resources all over the world. And it's driving up the price of oil here in the U.S., causing gas prices to spiral.

Think long-term about this issue. Look beyond the current sticker shock. There is more to it.

Read more here.

Ford's New Plans, What Does It Mean to Your Community?

Ford Motor Company CEO Bill Ford says the still-struggling carmaker will unveil this fall its second major restructuring in four years. It could be sweeping. You should be thinking about this one!

Click here to read more.

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Exporting Companies: What Do We Know?

The U.S. Census Bureau, Department of Commerce, tracks exporting companies. In 2003, accounted for nearly $630 billion in exports or almost 87 percent of the total export value ($725 billion).

Identified U.S. exporters are defined as exporting companies that can be linked to the Business Register. In 2003 the number of identified U.S. exporters was 225,190. Of these, 142,853 also exported goods in 2002.

Because not all export shipments can be linked to specific companies, the number of exporters may be understated. Approximately 13 percent of the 2002 and 2003 total export value could not be linked to specific companies. The remaining portion of the total export value was accounted for by individuals, governments, low-value estimates, and documentation filed with missing, unknown, or incomplete company identifiers. Export values are taken from detailed export documentation used to compile the official U.S. trade statistics. Company size and type information are taken from administrative records and census or survey data on file with the Census Bureau.

The highlights in this release, extracted from A Profile of U.S. Exporting Companies, 2002 - 2003, represent only those export transactions linked to specific companies and are focused on the 2003 data year. Additional information on the 2002 data year can be found in the full profile.

Download the analysis here.

Target Industry: Personalized Medicine

For those of you targeting the advanced healthcare service and technology field. a recent report by PricewaterhouseCoopers on personalized medicine will interest you. Click here to download it.

Defining the International Creative Sector

UNESCO brought experts together to define the "international creative sector." Here is what they came up with. Some participants drew a strict line of demarcation between the for-profit and non-profit activities in defining the “creative sector,” believing that commercial activity should not be introduced into this notion. Others voiced a preference for a concept of the “creative sector” to include all aspects of creative activity, encompassing both the non-profit sphere of artindustries. Certain aspects of higher education or the video gaming industry might also be justified as creative output.

Consequently, the chosen definition of “creative sector,” when measuring its contribution to a country’s economic activity (GDP), has an impact not only for considering economic impact but also for international comparisons. A purely organization-based, sectoral approach seems to be giving way to analysis that takes into account occupational and professional data and the economic contribution that artists and creative workers make to a given city, region or country.

Download UNESCO's report on the subject.

Scotland Targets the Creative Sector

More than 100,000 people are employed in the creative industries sector in Scotland. It boasts an annual turnover of £5 billion.

The term "creative industries" covers:

games;
radio and television;
new media;
film; music production;
design;
publishing;
architecture;
advertising;
arts; and,
cultural industries.
Scottish Enterprise is investing up to £25 million in the development of Scotland's creative industries, to exploit the wealth of talent, skills and expertise in the sector.

We are placing our strategic focus on the digital content industries, which can take the greatest advantage of emerging technologies and developing markets in this dynamic sector.

More here.

Target Industry: Construction

Often overlooked, Construction adds a great deal to local economies. How much do you know about?

Industry Definition for Construction

Construction is one of twenty sectors that comprise the US economy. This industry report is primarily concerned with the construction of building or engineering projects. This sector also includes establishments which are engaged in the preparation of sites for new construction and the subdivision of land.

Inputs for the construction process are purchased from domestic (and in some cases, international) suppliers. Key suppliers include other construction operators in this sector, manufacturers and wholesale trade operators. Markets for goods produced by this sector include residential, non-residential and engineering avenues. Activities excluded from this sector include the installation and ongoing repair and maintenance of telecommunications and networks.

NAICS Definition: The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites are also included in this sector.

Activities (Products and Services) for Construction

The primary activities of firms in this industry are:

Construction of buildings
Heavy and civil engineering
Specialty trade contractors

The major products and services in this industry are:

Construction of buildings
Specialty trade contractors
Heavy and civil engineering

Most Watched Leisure Sector Companies

According to Dun and Bradstreet, these are the most highly watched Leisure Sector companies in America:

World Wrestling Entertainment, Inc.
McDonald's Corporation
The Walt Disney Company
Starbucks Corporation
Anheuser-Busch Companies, Inc.
Cendant Corporation
Time Warner Inc.
Viacom Inc.
Comcast Corporation
YUM! Brands, Inc

Most Watched In Phoenix

According to Dun and Bradstreet reports, these are the most watched companies in Phoenix, Arizona:

Cold Stone Creamery
Direct Merchants Credit Card Bank, National Association
Apollo Group, Inc.
Allied Waste Industries, Inc.
Avnet, Inc.
PETsMART, Inc.
Swift Transportation Co., Inc.
P.F. Chang's China Bistro, Inc.
Phelps Dodge Corporation
The Dial Corporation
Insight Enterprises, Inc.
eFunds Corporation
Desert Schools Federal Credit Union
Knight Transportation, Inc.
America West Holdings Corporation
Honeywell Aerospace
ClubJenna, Inc.
EaglePicher Holdings, Inc.
Discount Tire Co. Inc.
Amkor Technology, Inc.
ON Semiconductor Corporation
Arizona Tile Supply, Inc.
JDA Software Group, Inc.
CSK Auto Corporation
Salt River Project

Target Industry: Surgical and Medical Instruments (3841)

Industry: Establishments primarily engaged in manufacturing medical, surgical, ophthalmic, and veterinary instruments and apparatus. Establishments primarily engaged in manufacturing surgical and orthopedic appliances are classified in 3842; those manufacturing electrotherapeutic and electromedical apparatus are classified in 3845; and those manufacturing X-ray apparatus are classified in 3844.

Market Size Statistics: Estimated number of U.S. establishments: 3,333Number of people employed in this industry: 194,506Total annual sales in this industry: $83,762.00 millionAverage number of employees per establishment: 67Average sales per establishment: $32.70 million.

Source: DTIA

Purdue University Research Park

Purdue Research Park, which opened in 1961, is currently in the second phase of its development. The park is home to more than 90 companies that employ 2,500 people. Many of these companies are developing Purdue-licensed technologies. The park provides an interactive environment for private business/industry, mainly in the high-tech arena, and experienced Purdue University researchers.

State Economic Growth, 1999-2004