The Tennessee Business Retention and Expansion Course is a one and a half day course which focuses on how to develop, implement and evaluate an effective retention and expansion program. Presentation from Laith Wardi, CEcD, President of ExecutivePulse,Inc.
9. The American Recovery and
Reinvestment Act was passed into law in
2009.
The Act provides $840 billion in funds.
Tax benefits account for $300 billion.
Contracts, grants and loans for $222
billion.
Entitlements for $218 billion.
Source: Recovery.gov
11. Foxconn (the Chinese factory where most
iPhones are made) employs 230,000
workers. Over 60,000 of these workers
live in company dorms.
The same company employs roughly
8,700 industrial engineers.
Average wage for production workers is
$17 per day and they work 6 days a
week/12 hours a day.
13. “Cleantech” segments of the economy
produced explosive growth during the
recession.
The clean economy is both
manufacturing (26% vs. 10%) and export
($20K vs. $10K) intensive.
Green and clean is largely urban.
Clusters are the norm cleantech.
Wages are 13% higher than median US
wages.
Source: Brookings Institute
17. “Our economy is
bigger than it was
before the start of the
Great Recession.
Corporate profits are
back. Business
investment in hardware
and software is back-higher than it's ever
been. What's not back
is the jobs.”
Source: CBS 60 Minutes Interview 113-13
18. The percentage of Americans with
jobs is at a 20-year low. Just a few
years ago if you traveled by air you
would have interacted with a human
ticket agent. Today, those jobs are
being replaced by robotic kiosks.
Bank tellers have given way to ATMs,
sales clerks are surrendering to ecommerce and switchboard operators
and secretaries to voice recognition
technology.
Source: CBS 60 Minutes 1-13-13
27. Common Denominators
Rapidly changing markets
Assimilation of new technologies
Change in workforce composition
New delivery methods
Fundamental change in customer
behavior
28. “We are being afflicted with a new
disease of which some readers may
not yet have heard the name, but of
which they will hear a great deal in the
years to come – namely, technological
unemployment. This means
unemployment due to our discovery
of means of economizing the use of
labor outrunning the pace at which we
can find new uses for labor.”
John Maynard Keynes
29. “…this is not unique to
this recession, it’s
actually been a trend
we’ve been seeing over
the last several business
cycles—it’s businesses,
once they lay off, they’re
actually learning to be so
efficient and increase
their productivity so
much that they can make
the same number of
goods without as many
Source: USA Today Interview with President Obama
people.”
31. A Jobless Recovery
The persistence of U.S.
unemployment has risen with each of
the last three recessions, raising the
specter that future U.S. recessions
might look more like the
Eurosclerosis experience of the 1980s
than traditional V-shaped recoveries
of the past.
Source: Amerisclerosis-The Puzzle of Rising US Unemployment Persistence 99-2013
38. Dateline: Detroit, Michigan
GM said Monday that it sold 2.35 million vehicles in fast-growing China,
about 136,000 more than it sold in the U.S., with China sales surging 29%
as an expanding middle class gained wealth. Sales in the U.S., including
heavy-duty vehicles, rose 6.3% as GM continued to rebound from its 2009
stay in bankruptcy protection.
Source: USA Today , 1-25-2011
39. This is a very exciting development, because
China is growing tremendously. It's the largest
automobile market in the world. If you look at the
projections this last year, in 2010, we had 74
million vehicles sold. Our projection is in 2020,
that'll move to 112 million vehicles. In China
alone, it'll go from 18 million, which is about 25%
of the entire market in 2010, to 32 million in 2020,
which would be 28% of the market. Solid markets
in the Americas, very solid markets in Europe,
and then tremendous growth in Brazil, in Russia,
in China. Ford's strategy is to serve all these
markets and also to utilize our resources
worldwide so we have more global platforms.
Source: USA Today-7-18-2011
Interview with Ford CEO, Alan Mulally
42. Senior General Motors officials
forecast that sales in China could top
35 million annually by 2022. That’s
more than double the peak of the
American market nearly a decade ago.
“No market is more critical than the
China market for us,” Tim Lee,
president of General Motors’
International Operations, told reporters.
You may hear the same thing from
other manufacturers, whether
Volkswagen, Toyota or Ford.
Source: The Detroit Bureau April 2013 Car Sales Defy Weak Economy
43. US Hiring Dilemma
What is important about this debate is that if most
of what's holding back a faster improvement in the
unemployment rate is structural in nature — i.e., a
skills mismatch that will only be corrected via
retraining of the workforce and/or the gradual
improvement in the housing market—then the Fed
is ill-equipped to deal with this problem," RBC
Capital Markets said. "No amount of quantitative
easing will make the gargantuan amount of
unskilled labor supply more employable."
Source: NBC News 3-14-13
44. US Growth Trends
2002 to 2012 - Growth in Employment
12,566,352
Stage 1 (2-9)
825,290
2,246,741
-4,666,501
Stage 2 (10-99)
Stage 3 (100-499)
Stage 4 (100-499)
Source: YourEconomy
45. US Skills Gap
“The problem of the looming retirement of
highly experienced workers has been
aggravated by the fact that new recruits tend to
be far less technically skilled than entry-level
workers were decades ago. ”
Source: Rick Stevens, Senior VP of
Boeing
46.
47.
48. Bigger Is Not Better
“It get you bragging rights…but that’s
about it. Being biggest in the world is
not necessarily an advantage to
anyone. GM was number one for
something like 75 years and then went
into bankruptcy. What’s far more
important is sustainable profitability.”
Source: Aaron Bragman, IHS Automotive
51. In the Driver’s Seat
Labor demand greatly outpaces supp
Skilled, educated workers dictate term
Bigger firms ‘win’ over smaller ones
Urban metros ‘win’ over rural areas
52.
53.
54.
55.
56. Three Ways to Grow
Your Economy
Entrepreneurial Development
Business Recruitment
Business Retention/Expansion
57. “When it comes to generating new jobs,
it's existing companies - not new
startups - that have the leading role.
New startups are often billed as the
stars of economic growth. Yet it's
actually existing, expanding companies
that contribute most to U.S. job
creation. In fact, from 1990 to 2008,
existing companies generated 71
percent more new jobs than startups.”
Source: 2012 Donald W. Walls, PhD. Walls & Associates
58. Over 15,000 ED organizations chase
fewer than 200 major business
relocations or expansions annually.
This causes ED Inflation…
Mark O’Connell—OCO Global
59. He (Bill Taylor) said the
recruitment of new industry
is going to be more targeted
based on those industries the
state needs. He said a key
part of the work needs to
focus on helping existing
companies expand because
75 percent of job growth in
Alabama comes from those
companies and, in some
counties, the figure is 100
percent.
Source: AL.com Rotary Club of Birmingham Speech 222-12
69. “...Very simply, two things: communication
and action. If a community takes the time to
talk with a business, to understand its
concerns, risks, opportunities and
challenges, it will understand exactly what it
takes to improve business. Then it needs to
act on what is has heard. The company
also has the responsibility and opportunity
to engage stakeholders in a proactive
dialogue.”
Source: Area Development-Aug 2012
Interview with David Trebing,
GM-State/Local Relations, Daimler AG
70. “...The best economic development tool is
very simple: volume. That happens when
all stakeholders focus on building a globally
competitive product in a globally
competitive location by a globally
competitive workforce.”
Source: Area Development-Aug 2012
Interview with David Trebing,
GM-State/Local Relations, Daimler AG
83. It generates 70-85% of all jobs and
investment impact in your trading
area—regardless of your success
with recruitment and
entrepreneurial development
84. It allows you to interact with, and
get feedback from, your actual
customers—those businesses
with an intimate understanding of
your market area
85. It is up to 10 times cheaper to
keep and grow resident firms
than to attract or start new ones
87. It is a “team sport” that facilitates
a cohesive and collaborative
approach to economic
development
88. It drives creation of relevant
policies, strategies and
programs—all with impact beyond
existing industry
89. It takes the focus away from highly
publicized recruitment activities
that hurt local business in any
trading area
90. It raises the bar for a market area
by helping companies become
globally competitive.
91. ROI—From a Single Company
250 Jobs @ $62,000 each
$15.5 million annual payroll
$825,000 state /provincial tax revenues
$725,000 city/county tax revenues
Jonathan Sangster—CBRE—Area Development/Feb-Mar 2010
94. “A job retained is just as good as a job
gained.”
“Communities and states that
recognize the value of retention
incentives during challenging times
may have an advantage in the
competitive to retain their operations.
Jonathan Sangster—CBRE—Area Development
97. Outcomes
Thank the CEO (show the love)
Learn about the company and
match needs to available
programs
Use CEO views and opinions
to create a better business
climate
98. Benefits
Directs ED resources to your ‘best’ firms
Assists firms in becoming globally
competitive
Creates a more accountable ED ‘system’
Galvanizes the ED Community
Stretches limited ED resources
102. Customer Service
The dynamic network of local,
regional and provincial/state
resources who provide
cohesive and seamless
service to the BR&E program.
106. Dear Amazon.com Customer,
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108. Customer Relationship
Management (CRM)
A continually evolving
process which requires a
shift away from the
traditional business model of
focusing internally.
Source: Peppers and Rogers
109. Customer Relationship
Management (CRM)
An approach that takes you
toward customers--backed up
by a thoughtful investment in
people, technology and
business processes.
Source: Peppers and Rogers
110. "If the only tool you
have is a hammer, you
will see every problem
as a nail."
Source:
Abraham Maslow, Motivational
111. Competitive Advantage
“The only true competitive
advantage comes from the
understanding you have of your
customer that your competitors
don’t…this information has to
come from the customer.”
Source: Peppers and Rogers
112. Customer Equity
Equation
“The more effort the customer
invests, the greater their stake in the
product or service. Now the
customer finds it more convenient to
remain loyal, rather than re-teach a
competitor.”
Source: Peppers and Rogers
114. DETROIT - General Motors Corp.’s
auditors have raised “substantial
doubt” about the troubled
automaker’s ability to continue
operations, and the company said it
may have to seek bankruptcy
protection if it can’t execute a huge
restructuring plan.
Source: MSNBC.com News Services/ March 5, 2009
121. “Old” Marketing Model
The “old model” treats
all customers the same.
The endgame is
increased market share.
122. “New” Marketing Model
The “new model” treats
all customers differently.
The endgame is
increased share of the
customer.
123. The Good, The Bad
and The Ugly
“We want to keep the good, grow the bad
and the ugly we want nothing to do with.”
Source: Business Week
124. Reward Zone customers account for
only 30% of transactions at Best Buy but
spend more than twice as much as
regular customers.
($850 versus $400 per year)
125. “It is controversial to redline customers.
But done correctly, it really is saying I
have a limited pool of money and I need
as a business person to spend that
money where
I can get the most return.”
Kelly Hlavinka--Marketing Consultant for Best Buy
133. Drucker on
Customers and
Resources
“In an economic cause, one asks:
Is this the best application of our
scarce resources? There is so much
work to be done. Let’s put our
resources where the results are.”
Peter Drucker
Managing the Non-Profit (1992)
134. “Good” Money
Money that flows into a local economy
from
competitive companies that sell outside
the local economy.
David Morgenthaler-Morgenthaler Ventures
135. “Neutral” Money
Money that circulates within the local
economy.
(Sometimes referred to as the multiplier
effect.)
David Morgenthaler-Morgenthaler Ventures
136. “Bad” Money
Money that leaks out of the local
economy in the form of people or
purchases.
David Morgenthaler-Morgenthaler Ventures
137. Tennessee Trends
2002 to 2012 - Growth in Establishments
148,7685
5.6%
3,025
-1.4%
Resident Firms Non-Resident Firms
Source:
YourEconomy
138. Tennessee Trends
2002 to 2012 - Growth in Employment
163,917
1%
-90,445
-1%
Resident Firms
Non-Resident
Source:
Firms
YourEconomy
146. Your Best Bet Customers
Create wealth by exporting goods/services (good money)
Provide quality jobs and high wages
Generate capital investment in the community
Incorporate technology into products and
processes
Are eligible for ED programs and resources
Want our help to stay and grow
Grown locally
147. Avoid the “comfort level
syndrome”
Seek out firms that have
“fallen through the
cracks”
148. “If you can’t measure it,
you can’t manage it.”
Peter Drucker
149.
150. What You Can Measure
Number of customer visits
(wk/mo/yr)
Number of referrals made
Number of referrals (closed vs.
open)
Percent of repeat business
151. What You Can Measure
Number of program partners
Average response time by partners
Recognition rating of program name
Buy-in among key stakeholders
Number of tangible success stories
Longevity of program
152. More Measurements
Quality job creation/retention
Investment in technology/innovation
Market diversification
Cost mitigation
Increased profitability
Increased productivity
153. Measuring Results
See all of your customers at least once
ee all of your good customers regular
Uncover and meet/exceed their needs,
wants and expectations
Put into place policies and programs th
anticipate their needs