alaska forward industry cluster seattle regional eda training presentation
TRANSCRIPT
Alaska Forward: Towards a Next Generation EconomyGeneration Economy
Dr. Kathryn DodgePresident, Alaska Partnership for Economic DevelopmentDevelopment Director, Fairbanks North Star Borough Alaska Regional Development Organization
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Regional Development Organization
S C• Alaska State Chamber• Alaska State Department of Commerce,
C it d E i D l tCommunity and Economic Development• 12 Alaska Regional Development Organizations
(ARDORs)(ARDORs)• Fairbanks and Juneau Economic Development
CorpsCorps. • University Center for Economic Development
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Alaska Forward: Towards a Next Generation EconomyTowards a Next Generation EconomyA two phase project:• Phase 1– Situational Analysis: an “economic
reality check”• Phase 2 — Strategy Development: developing
recommendations for new economic development di ti li i d tidirections, policies and practices.
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Phase I – Situational Analysis Report
• Economic Profile and ForecastA l i f i ti i d l t• Analysis of existing economic development objectives and strategiesA t f E t hi d B i• Assessment of Entrepreneurship and Business Climate
• Alaska's Industry Cluster Portfolio• Alaska s Industry Cluster Portfolio• Competitive Benchmarking
Gl b l M k t O t iti• Global Market Opportunities• Final Report - A Path to the Future
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What did the Situational Analysis tell us?The problem: accumulating levels of future risk and
declining economic resiliency:g y• Continuing declines in oil production (85% of state
revenue))• Uncomfortable trends in other natural resource
sectors• Downturns in tourism • Aging workforce g g• Weak culture of entrepreneurship• Remoteness and related infrastructure challengese o e ess a d e a ed as uc u e c a e ges• High energy and transportation costs
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Energy sector:no longer a source of growthno longer a source of growth
Source: IHS CERA - Cambridge Energy Research Associates
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The Key Problem: Alaska’s comparative stagnationAlaska s comparative stagnation
16,000 40History Forecast
Real Gross Domestic/State Product
14,000
15,000
34
36
38
U.S.
12,000
13,000
on 2
005
$
30
32
34
on 2
000
$
(left scale)
10,000
11,000Billi
o
26
28 Billi
oAlaska (right scale)
9,000
10,000
22
24
77
8,0001990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
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Sources: Bureau of Economic Analysis (BEA) and IHS Global Insight
Employment - stability that tends to mask what is happening in the underlying economyis happening in the underlying economy
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Surprising degree of consensus from stakeholdersSurprising degree of consensus from stakeholders
• Lack of statewide leadership and coordination of economic development resources seen as obstacles, past and present
• Alaskans continue to view natural resources as the greatest opportunity for economic development
• Greatest barriers include high cost of transportation, cost of energy, and federal regulationsregulations
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Phase II: Strategy Development & Implementation p• Strategy Development – moving to an industry
cluster approachcluster approach —Identified:
• Eleven clusters in the state• Ten seed clusters
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Reducing Risk, Strengthening Economic Resiliency through Industry ClustersResiliency through Industry Clusters
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Alaska’s 11 Clusters
10
11
12
rage
= 1
)
Cash Cow StarU.S. Gross Output Growth, 3.7%
Fishing & Seafood
7
8
9
Rat
io, E
CR
(U.S
. Ave
Travel and Tourism
Mi i
Output Growth, 3.7%Seafood
4
5
6
men
t Con
cent
ratio
n R Mining Oil &
Gas/Pipeline/ Refinery
MilitaryCommunities
Federal Government
1
2
3
Empl
oym
F t /W d P d t
Specialized Machinery/Capital goods
Federal Government Machinery/Capital goods
-2
-1
0
-4 0% -2 0% 0 0% 2 0% 4 0% 6 0% 8 0%
Logistics and International
Forestry/Wood Products
OpportunityChallengeAdvanced Business Services
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4.0% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
Industry Dynamism (Gross Output, CAGR %), 2009-2019
Note:1.Size of circle represents employment in 20082. For Fishing and Seafood Processing, ECR=30.6
How do you develop a cluster?
• Bring together I d t l d—Industry leaders
—University research partnersIndustry regulators—Industry regulators
• Create environment supportive of—Putting old grievances behind—Putting old grievances behind—Identifying and resolving barriers; —Developing opportunitiesp g pp
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Turning it into a Strategic Plan
• Work with Leadership Council and political leaders to develop mission & visionto develop mission & vision
• Identify top actions recommended by clustersI t i t d i “St t i D i ” t f• Incorporate into dynamic “Strategic Doing” type of plan
Reflects current industry cluster—Reflects current industry cluster recommendationsUpdated semi annually—Updated semi-annually
—Used to support funding and legislative requests
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Fairbanks Clusters
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—Thank you!
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