Labor Lessons from Muskogee

We just finished a regional workforce study for NE Oklahoma. Here is a story about one of the counties within the region.

An abundance of government jobs, industrial expansion and the current retail boom are being credited for making Muskogee County a net importer of labor.

A report released by the Oklahoma Department of Commerce shows Muskogee County is one of only 16 counties in the state that attract more inbound commuters than outbound commuters.

According to its Report on Commuting Patterns and Daytime Population, 7,368 people cross county lines to work in Muskogee County. Another 278 workers from outside Oklahoma commute to work in Muskogee County.

Is your area a net importer or exporter of labor?

Read more here.

Tulsa Job Growth

We are working in Northeast Oklahoma. Here is a recent article about job growth in the Tulsa part of the region. The more rural counties in the region have not seen as strong of job growth.

The Tulsa metropolitan area has seen a substantial increase in the number of jobs this year over last year--and 2006 is only half over. But don’t get too excited yet. While 2006 is seeing increases in job growth and a low unemployment rate, the number of new jobs still isn’t at levels on 2004 and 2003. Even more, Tulsa’s job growth numbers were small in 2005.

Though the national economy seems to have recovered, and with it, the state and local enonomies on its coattails, Tulsa still have a lot of “recovering” to make up for big losses in jobs and population during the oil bust years of the mid-to-late ‘80s and, more recently, the tens of thousands of jobs lost during the telecom and aerospace bust in 2001. But, based on the numbers found on the Tulsa Metropolitan Chamber of Commerce’s Web site, www.tulsachamber.com, there has been a total of new 4,933 jobs in 2006.

Read more here.

Arizona Works Together to Attract International Investment

We are working in Arizona. Thought this article might be of interest to you who want to engage in inter-regional partneships:

The Greater Phoenix Economic Council, the Greater Flagstaff Economic Council, Tucson Regional Economic Opportunities and the Arizona Department of Commerce have formed a public-private partnership called the Arizona Global Network to try to secure foreign investment that will create jobs and diversify the state’s economy.

Read more here.

North Carolina ED Partnership Rules To Tighten

We have been working in North Carolina. The state recenly tightened its rules for it regional economic development partnerships.

The new legislation requires the partnerships, designed to help recruit new businesses and industries to their areas, must follow all of the rules governing organizations that receive public money. Each group must have a conflict-of-interest policy in place. New board members must attend orientation sessions to learn about commission policies and rules.

The bill also requires that the state Commerce Department set uniform accounting, personnel and contracting procedures for all of the commissions. The commissions will pay for the cost of creating the rules.

Read more here.

Fidelity Invests in NC Triangle Area

Fidelity Investments has confirmed plans to build a Research Triangle Park facility that will add 2,000 jobs to the area -- one of the largest economic development projects in North Carolina in years. In exchange, state and local officials have agreed to prvide incentives totaling as much as $69 million during the next 12 years.

Fidelity already employs about 1,000 workers in North Carolina, most stationed at an employer-services operation in Durham. The new facility will boost the company's Triangle presence to about 3,000 jobs.

The company plans to invest $100 million to build the facility, which will be in the Wake County portion of RTP along Louis Stephens Road.

State officials say the new jobs are expected to pay an average annual salary of $58,400 plus benefits.

Read the story here.

Charlotte Area County Includes Felony Clause in Incentive Agreements

Two weeks after sweetening the incentives used to attract businesses to relocate or expand in Cabarrus County, North Carolina the board of commissioners is considering a policy clause that targets felons.

County Attorney Richard Koch will discuss the proposed changes with the Cabarrus Economic Development Corp. and bring the final wording back to the commissioners.

Commissioner Coy Privette pitched the idea in July after the arrest of Gene Haas, who is accused of defrauding the government of more than $20 million. Haas is the owner of Oxnard, Calif.-based Haas Automation and NASCAR's Haas CNC Racing in Kannapolis.

In exchange for three years of tax breaks, the Kannapolis company recently promised to invest $40 million in a wind tunnel in Cabarrus that would be used to test racecars and other vehicles.
If the proposed clause is approved, the county could cancel any incentives given to a corporation if any of its corporate officers were guilty of a felony. The policy also would require the company or person to repay any incentive money.

Read more here.

East Texas Dialogue on Economic Development

What is the conversation about in economic development? Click here to see what they're talking about in East Texas.

Wisconsin Takes Notes from Denver

Tom Clark, head of the Metro Denver ED Corp was in Wisconsin this week talking about the importance of regional cooperation in fostering economic development.

Read the story here.

CEOs Say Things Slowing

America's leading CEOs see continued strength in the economy throughout the next six months, with the U.S. economy moving from a vigorous first quarter to a more sustainable, long-term growth trend, according to a survey conducted by the Washington, D.C.- based Business Roundtable.

The Roundtable is an association of CEOs of corporations with a combined work force of more than 10 million people and $4.5 trillion in annual revenues. As a result of its second-quarter survey findings, the organization lowered its economic outlook index slightly, to. 98.6 from a first-quarter level of 102.2.

Read more here.

More Senior Entrepreneurs

Some seniors still look forward to an idyllic retirement, filled with endless golf greens, ocean cruises and quiet evenings in the easy chair.

But due to financial need or simply to remain active, a growing number of retirees are chucking relaxation for the ultimate golden years' challenge: starting their own business.

For a lot of senior entrepreneurs, retirement itself acts as a catalyst for launching a new venture.

Read more here.

Business Investment Slows

Impact on economic development? Keep an eye on the economy. There are some worry spots out there. Read more here.

Industrial Manufacturing Outlook

According to PriceWaterhouseCoopers:

"U.S. industrial manufacturers are gearing up for growth, projecting an average revenue increase of 8.1 percent for the next 12 months, according to PricewaterhouseCoopers’ most recent Manufacturing Barometer. Executives surveyed also expressed continued worries about energy prices, and 61 percent noted they were either already sourcing from low-cost countries or seriously considering doing so.

Industrial manufacturers’ predicted growth rate of 8.1 percent is higher than last quarter’s projection of 7.8 percent – and significantly above the 6.5 percent forecasted a year ago. On another positive note, only 13 percent of respondents cited decreasing profitability as a potential barrier to growth, down from 22 percent last quarter.

Pass-through price increases have provided an opportunity for these companies to test their pricing power and maintain gross margins. While costs have increased for over half (53 percent) of the companies, nearly as many have boosted their prices (45 percent). At the same time, 40 percent of those surveyed increased their gross margins. These strong margins are enabling the majority of manufacturers (60 percent) to make major new capital investments over the next year, with 57 percent planning increased investment in new products or services, and 49 and 47 percent, respectively, expecting to make added investments in information technology and research and development."

Read more here.

Target Industry: Pharmacogenomics

Pharmacogenomics, the study of how genes affect the way individuals respond to drugs, has the potential to dramatically change the way in which medicine is developed and practiced. Today, only a handful of pharmacogenomics-based products are on the market—but within 10 years they are expected to be a part of mainstream medical practice. What might be the clinical impacts of pharmacogenomics? What will be the benefits of pharmacogenomics products, as well as the challenges involved in their development and market acceptance?

Learn more here.

ED Futures Newsletter
July 30, 2006 Issue
Tel: 440.449.0753 Email: dtia@don-iannone.com

Dear Readers:

Welcome to the latest ED Futures Newsletter. In this issue, you will find articles on:

1. Northeast Ohio's economic development struggle. (Special analysis)
2. Dayton, OH regional economic development.
3. Shreveport, LA convention center.
4. Oshkosh, WI.
5. Micro-Lending.
6. Economic update.
7. Raytheon changes.
8. Biofuels.
9. Business dynamics
10. Binghamton, NY.
11. San Marcos, TX.
12. Chinese investing in Oklahoma.
13. Venture capital trends.
14. BMW's new investment plans.
15. Regional business coalitions.
16. California regional priorities.
17. LA's convention center.
18. Branding Houston.

As always, we welcome your thoughts.

Best wishes,

Don Iannone, Publisher

Dayton Development Coalition

The Dayton Development Coalition strikes me as doing a good job in fostering regional economic development. Click here to download the organization's 2005 annual report.

Shreveport, LA: How Much Can a Convention Center Do?

"The Convention Center and its adjoining 12-story hotel are Shreveport's latest -- and largest -- attempts to brand itself as a premier regional convention and tourism hub. Since voters approved funding for the Convention Center in 1999, Mayor Keith Hightower has zealously defended the $150 million project as a vital economic cog." Read more here.

Don's Take: Be cautious in what you expect from the convention business to do for your community. It can be important, but I would urge reason in setting expectations.

Oshkosh

Oshkosh, Wisconsin explores the importance of regional quality of life to economic development. Read the discussion. It sounds all too familiar.