transforming your region
DESCRIPTION
Rich Overmoyer, Fourth Economy Consulting presentationTRANSCRIPT
Transforming Your Region….
Presented by Rich Overmoyer, CEO Tweet:@FourthEconomy
June 10th, 2012
“Necessity, who is the mother of Invention.” :: Plato
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• Pace of Change • Recognizing the Need • New Models • Role of
-‐ Technology -‐ Energy -‐ Demographics -‐ Place
• Need to Knows
Key Points
4
Value Based Economic Development is Defining Modern Investment Trends
5
Cost–Based Industry CharacterisDcs
Total ProducDon Control
VerDcal Management Structure
Central DistribuDon & LocaDon
Larger Centrally Located Employment Base
Labor Intensive
People followed Jobs
Cost and Wage SensiDve
Use of Natural Resources
Large Tracts of Land
Outdated strategies focus on lower cost rather than responsible investment
Federal tax cuts for corporations/businesses Spending on speculative infrastructure/public works projects Picking individual winners versus sector support Big Bets…versus diverse investment
Value-‐Based Industry Characteris9cs
Higher producDvity – Less people
InnovaDon is a Cornerstone
Smaller Sizes – Many LocaDons
Talent Driven / AQract and Retain
Grow by Buying Other Companies
They Follow People
Corporate Image Important
Urban SeUngs (Small and Large)
Serial Reinvestment
Moving to plug the defection of staff to
competitors, Google Inc. is giving a 10% raise to all of
its 23,000 employees, according to people
familiar with the matter.
(Wall Street Journal – 11/10/10)
“Average Space Required Per Person Down
from 250 sq/ft to less than 150
sq/ft”
ULI
Transarc / IBM Pittsburgh
1989 / 1999 Laminar 1999
Spinnaker 1999
FORE Systems / Marconi Networks
1990 / 1999 Laurel
Networks 1999
Comanage 1998
Carnegie Mellon
Mediasite 1996
Panasas Opsware
Lightera Networks
OnFiber Communications
InFinera Corporation
WaveSmith Networks
AcceLight
Scalable Networks
Value-‐Based Growth Trajectories
From 0 to 1,500 jobs over 15 Companies in 12 years…
Convene the Stakeholders
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Technology
Energy
Commurbanism
Millennials
Four Drivers Accelerating Transformation
Technology
Accelera9ng change
ShiCs in occupa9ons, products and workplace
environment
Leveling Loca9onal advantages
Instant Global Reach , Computer Power – Can we remember a world without Smart Phones? – So two
years ago…
Mobility, Ever Emerging Occupa9ons (VP For Social Media
PlaRorms), The Anywhere Office (Open 24hrs), JIT
Products
Personal Market Choices, skill set dispersion, less
concentrated metro advantages
Rising Prices Housing Public
Policy
Location
Rethinking Lifestyles, Transporta9on
Choices/Alterna9ves, Driving Innova9on
Forced Discussion on wealth and credit, Refocusing priori9es
on real cost of housing
No Clarity -‐ Major Source of Con9nued Uncertainty impac9ng Foreign Policy, Financial Markets, Innova9on Response – Either way will reinforce a new
mind-‐set
Commurbanism
Back to Basics Ameni9es Social
Innova9on
Preference for Slower Pace – To Know Your neighbors –Walkability
(Pew Research) + Ups in 30 – 49 Age
(2010 Census)
Desire the Good (Parks, Bike Paths,
Restaurants, Grocery) without the bad
(Cost, CongesDon, Commutes)
Desire to give back, do, reinvent =
sustainable planning, consumpDon,
inclusion – Social Media Organizing – The RelaDonship
Economy
Millennials
Who Values Where
18 to 33 23% of the PopulaDon Ethnically Diverse Most EducaDon Social Networks
Less Religious Social Conscience
Delaying Marriage – Kids Small Biz Starters
Non-‐Profit Interests
Commurbanists Renters
Roomates Parents
Live, Work, Play
The Fourth Economy Index
Measures • Employment / Wage Growth • EducaDonal AQainment • Commute Times • Minority Owned Firms • Farm Land Per Cap/Sq.Miles • Home Value to Med HH Income • Total PopulaDon
Small-‐Size CounDes (100,000 to 150,00) 1. Clarke, GA 2. Monroe, IN 3. Johnson, IA 4. Tompkins, NY 5. Lee, AL 6. LaCrosse, WI 7. Olmsted, MN 8. Warren, KY 9. Wood, OH 10. Randall, TX
Transformative Models
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Transform Your Region
Economic
Gardening
Re-‐Shoring
Clusters and
Chains
Wealth Building
To Transform we must think…
Adhocracy vs. Bureaucracy “Getting the Civics Right”
Value and Wealth vs. Cost and Jobs
Place vs. Location
Innovation vs. Technology
Capacity vs. Infrastructure
Collaboration vs. Competition
Resources vs. Grants
Human vs. Corporation
Virtual vs. Municipal Boundaries
Think Assets vs. Great Place to Raise a Family
“I came for the place, and the jobs have followed”
Bartender – PhD Georgetown, CO
“Cost is not the primary driver – It’s the resources, the housing and the fact that our employees are happy
to be here” Tech Entrepreneur
Athens, GA
“We saw run down bars, they see history, funky and cool”
Economic Developer MonValley
