DOROTHY SAVARESE, Chairman of the Board:
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1 State of the Cape Address March 15, Community Media Center, Shad Hole Road, Dennisport, MA DOROTHY SAVARESE, Chairman of the Board: Why a State of the Cape Address? Chamber is in a position to know the Cape s issues We seek to create a nexus of talent to address these issues We want to recognize collaborators We seek to heighten awareness of work on specific projects We have metrics to measure the progress and data to share with the community. The Chamber s recent research and prior forums defined many of the issues that the Chamber strategic plan works to address: Changes in population trends, Increase in technology to diversify employment, Reliance on a healthy environment for a productive economy As a membership organization that advocates on behalf of business, we also work to strengthen and promote regional economic vitality. And we do this while addressing related cultural, environmental and community concerns. We believe we are a catalyst for a vibrant economic community which in turn creates a better Cape Cod. Cape Cod Chamber has organized its work into four distinct areas: Economic & Community Development o To increase wealth of the community Convention & Visitor Bureau o To achieve a sustainable year round visitor destination Member Services o To generate profitable business for members Public Policy o To represent and lead development of policies that promotes a strong and vibrant business community. Each pillar must work toward addressing the cross cutting community issues such as we will present to you through our panel discussion in a bit. We also work together with other like minded organizations as we know the work at hand cannot be accomplished by any single organization. Today s event is being held to bring attention to our economic issues, and to ask Cape Codders to work together to maintain a healthy economy while we work to grow new opportunities. 1
2 First we ll report out on some of the economic statistics GARY SHEEHAN EC DEV STATS & prognosis: Chamber is in a unique position to observe the Cape s economic landscape and to push the needle on our Gross Regional Product. We have strengths and opportunities unique to our region, and we have challenges that we must face together in order to continue to grow our economy and increase or quality of life. We have a lot of detailed information to share, which we are doing by handout or links to on line data sets. But I am happy to share some of the top line highlights and the good news. OVER ALL ASSESSMENT: The State of the Cape is GOOD. The Cape s current $9+ billion in gross regional product is moving back up from its low in 2009 of $7.4 billion. Gross Regional Product is defined as the market value of all final goods and services produced within a metropolitan area in a given period of time. In our case this is Barnstable Statistical Metro area. This is the equivalent of the national measure of economic growth the gross domestic product. KEY SECTORS ARE DOING WELL, HOLDING THEIR OWN OR REBOUNDING ARE: Major sectors that show no surprises since 2008 were Real Estate, rental and leasing with GRP at $1.5 billion in 1020 down from nearly $2.5 b in Growing sector is healthcare and social assistance climbing steadily since 2001 from $650+ million in 2001 to over $950 million in Holding steady is Professional, scientific and technical services at $450+ million in 2001 and just over $500 million in Bottom line the region has remained relatively unchanged in the past decade. Dipped during the recession On the rebound in the present since 2009 We need to continue to grow our Gross Regional Product and we will use the GRP as a key performance indicator of growth in the region going forward. LEISURE & HOSPITALITY Calendar Year 11 and CY 12 tourism numbers are up and we view the travel industry as resilient, with employment rebounding more quickly than many sectors. (Nationally travel industry job growth comprised 9% of the 1 million jobs added in 2011.) Rooms tax receipts were up in CY 10 and up again in CY 11 and CY 12 was trending ahead of CY 11. Smith Travel Research data shows recovery in both room rate and occupancy and REV Par or revenue per available room the accommodations industry barometer for health. The region continues to be a net producer of tax revenue to the Commonwealth from the heavily taxed tourism industry activity. Handouts provide a detailed overview of these data are available on the Chamber website. 2
3 EMPLOYMENT Unemployment has come down from a high in 2009 of over 9% to the current level of 7.2 OTHER INDUSTRIES Additional industry sectors will be presented in our first panel discussion. Our expert panelists will discuss their industry trends from their point of view in a moment. The Cape Cod Chamber, having conducted an extensive strategic planning process, is bullish on the Cape economy. We d like to share with you our assessment of the regions strengths and weaknesses as well as some threats and clear opportunities. Strengths: A strong tourism brand Environment and natural recreation adding to a high quality of life Second homeowners and retirees are choosing Cape Cod Close to major metropolitan areas Very Good healthcare Very Good education New municipal airport with year round service Good regional transit system Strong Young Professionals community Involved community, including the business leaders An active regional government Weaknesses: Threats: Transportation system that needs investment (bridges and regional transit) Workforce housing and seasonal worker housing needs Education gaps (particularly higher ed) Lack of conference center / indoor sports facilities / Performing Arts Ctr Limited air service beyond the islands Seasonal employment spikes and lack of workforce to fill this seasonal need Aging demographic among oldest counties in USA 15 towns potentially replicating services vs. a regional approach Multiple organizations with similar missions (could also be a strength if overlap reduced) Water quality threatened by lack of waste water infrastructure Evolving visitor desires for amenities we may not offer Bears and Sharks (could also be an opportunity!) Climate change Recession and its continued effect on government budgets at all levels Crime Opportunities : 3
4 A strong creative economy A growing SmarterCape movement bolstered by OpenCape broadband construction New higher education partners o UMass o Bridgewater State University o MMA o CCCC s STEM programs Strong k 12 public schools o MA public schools rank #1 in the US collectively, Cape public schools rank #4 o Sandwich s STEM Academy Innovation & the entrepreneurial spirit o # small businesses here including twice national average of single person businesses o Growth Incentive Zones & pre permitted business ready sites o Entrepreneurial Resource System access to capital and technical assistance o OpenCape construction spurring other telecom infrastructure Funding to promote Cape Cod to overseas and distant domestic customers o Summer train service from BOS o Summer air service to NY o Increased tourism marketing investments o Rezoning for improved visitor amenities and more luxury offerings State of MA named by the US Chamber as one of the to9p 10 future boom states o Annual Beacon Hill Institute State Competitiveness Report ranked Ma #1 due to our student achievement, technology and business incubation & healthcare. The Chamber s strategic plan works to address many of these topics and in your handout is a copy of the plan priorities. A full report is found on our website MOVING FORWARD Our vision for Cape Cod is a welcoming and vibrant community, home to a wide range of ages and cultures that respect our pristine environment and our robust economy. Cape Cod offers diverse and competitive employment opportunities, fosters a wealth of entrepreneurial efforts, offers housing for all, and world class education from preschool to graduate level. Cape Cod protects and promotes its recreational, technical, scientific and cultural assets and leverages its unparalleled environment to lure guests, entrepreneurs, businesses and retirees. Cape Cod s organizations work collaboratively to tackle our challenges and to celebrate our success In the next 1 to 3 years, the Cape Cod Chamber will: Push for development of a plan for Canal bridges Work to support expanded rail and air service into Hyannis Push for a scientifically sound and rational financial plan for waste water Create a private equity fund for startup capital 4
5 Create an entrepreneur s launch pad at the Chamber office in Centerville Launch a new website LIVE WORK PLAY CREATE Seek funds for a feasibility study for a regional sports or meeting complex Increase funds for international visitor destination marketing Launch a new destination wedding website Lure more Cape wide events and meetings to bolster year round tourism Work with the outer Cape Harbormasters on safe swimming information Continue to grow average annual employment and diversify our economy with programs like Startup Weekend Coastal Community Capital s access to capital and technical assistance Our annual workshop series And we will continue to represent the voice of business in the halls of county, state and federal governments and meet regularly with our elected leaders, as we did last week with Governor Patrick here on the Cape. Beyond the Chamber s work there are things we all need to support TOP TAKEAWAYS THE 7 THINGS CAPE COD NEEDS: 1. Transportation systems that work including better bridges, increased rail and air and transit bus service. 2. Adequate infrastructure including a plan to deal with waste water and a way to fund this plan, and a plan for the electric grid. 3. Ways to weather proof our visitor industry: Performing Arts Center, Meeting and/or Sports Facility 4. Investment in education including a four year college on Cape Cod, Community College dorms, Marine science and STEM curricula and facilities, and lifelong workforce skill development. 5. Shore to shore high speed broadband deployment and access to this by all 6. Housing for all including apartments, condos, cluster developments 7. Regionalized service delivery to help municipal tax burdens and improve efficiency e.g. strategic information office, regional permitting, watershed planning, and towns sharing services such as weights and measures calibration, health and building inspections, emergency communications, and more. 5
6 Ways to Participate and make a difference: Find ways to collaborate on projects and join forces with others that have similar goals. Support programs like the Sandwich K 8 STEM academy. Follow local planning efforts and proposed zoning changes or other efforts to enable cluster development housing, transit oriented development planning, wastewater infrastructure and more. Get educated on the topic and attend town meeting or vote on ballot questions as they arise. Mentor and promote young professionals. Seek benefits that help families with small children succeed at work. Add young professionals to your non profit board or community advisory committees. Participate in the annual update of the Comprehensive Economic Development Strategy (CEDS) as organized by Barnstable County and the Cape Cod Commission. Participate in SmarterCape Summit 5/13/13 in Hyannis. Sponsor events like Startup Weekend to help entrepreneurs with new ideas launch new businesses. Link to our new Live Work Play Create website to help promote Cape Cod as a great place to live and work. Respond to our calls for action to meet with your elected officials or advocate for change in constructive ways. We ask you to communicate your ideas and support and guidance: Wendy@capecodchamber.org & Pillar Chairs contact info on handouts 6
7 7
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