Economic Opportunities Through Regional Collaboration Economic Revitalization Conference Kingston, Ontario April 8, 2014 Bo Beaulieu, Director and Professor Purdue Center for Regional Development
Focus of Today s Presentation Intro to the Purdue Center for Regional Development Rural communities: A call to think and act regionally The launch of the Stronger Economies Together (SET) Key components of the SET program Studying Pertinent Data Outcomes to date Challenges
Our Organizational Make-Up Purdue University Office of Engagement Purdue Center for Regional Development (PCRD) EDA University Center Small Business Development Centers
The PCRD Mission Pioneering new ideas and strategies that contribute to regional collaboration, innovation and prosperity
PCRD Focus Areas
Thinking & Acting Regionally
U.S. Secretary of Agriculture Tom Vilsack I have reached the conclusion that we must overhaul our approach to economic development in rural America. The framework of the new effort recognizes that the rural economy of tomorrow will be a regional economy. No one community will prosper in isolation.
USDA -- Responding to the Call Partnership for Sustainable Communities (45 regions) Jobs and Innovation Accelerator Challenge (20 regions) Great Regions (7 regions) Stronger Economies Together (55 regions)
Launching SET
What Is SET? An initiative launched in 2010 by USDA RD in partnership with the nation s four Regional Rural Development Centers and their land-grant university partners. Lead Regional RD Center: Southern Rural Development Center Purdue Center for Regional Development joined as a new partner in 2013
Purpose of SET Help rural communities and counties work together as a regional team in developing and implementing A High Quality Regional Economic Development Plan that builds on their current and emerging economic strengths
Elements of a High Quality SET Plan Evidence-Based Practical Aligned with Vision & Goals A Team s Regional Plan Broadly Supported Focused on Regional Economic Development
SET: Designed to Complement Local Economic Development Activities
Why Launch SET? Strengthening the Rural Voice Economic Development Administration s Economic Development Districts
Metro: 1,167 counties NM Micro: 641 counties NM Noncore: 1,335 counties
Determining SET Regions: A Bottom-Up Approach SET states selected State Partner & Training Teams launched Counties & communities invited to apply as a SET region State Partner Teams review applications and submit recommendations to USDA RD USDA RD finalizes list of successful applicants SET regions announced; work with regions begins Regions defined by applicants
SET is Linking Nonmetro Areas
Percent 60 Counties Involved in SET: Facing Key Challenges 50 50.2 40 30 20 30.9 31.8 26.2 27 10 0 Low Education Low Employment Persistent Poverty Population Loss Mfg. Dependent Note: Based on the ERS 2004 County Typology Codes
The Key Components of SET
The Steps in the SET Program Vision & Goals The Team Assets Data A Regional Plan
Building a Regional Team: A Focus on Inclusion Local Residents Business & Industry LEDOs & REDOs Nonprofit, Voluntary & Faith-Based Groups Regional Team Members Local & Regional Governments Health Education
Studying Pertinent Data
Demographic Profiles
Mature Glass & Ceramics, 3.6, 714 Industry Cluster Analysis, 2007-2012 4 Stars 3 Energy (Fossil & Renewable), 2.38, 12,411 LQ, 2012 Chemicals & Chemical Based, 1.59, 2,306 2 Advanced Materials, 1.19, 4,263 Transportation & Logistics, 0.76, Mfg. Supercluster, 1.44, 6,014 Biomedical/Biotechnical, 2,840 0.6, Edu. & Knowledge, 5,777 0.72, 2,097 Mining, 0.92, 323 1-40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Defense & Security, 0.48, 1,792 Printing & Publishing, 0.53, 1,135 Arts & Ent., 0.45, 2,206 0 Agri. & Food Process., 0.57, 1,049 IT & Telecomm., 0.36, 1,578 Forest & Wood Prod., 0.29, 311 Business & Financial Services, 0.55, 8,544 Apparel & Textiles, 0.53, 492 Transforming -1 % Change in LQ, 2007-2012 Emerging Note: Label includes cluster name, LQ 2012, and Employment 2012 Data Source: EMSI 2012.4, industry cluster definitions by PCRD
Regional Requirements, Expenditures & Leakages, 2011 Business & Finance Energy (Fossil & Renewable) ** Manufacturing Supercluster ** Advanced Materials ** Biomed/Biotechnical IT & Telecommunications Agribusiness & Food Processing Chemical and Chemical-based Transportation and Logistics Defense & Security Primary Metal ** Arts, Entertainment & Visitor Transportation Equipment Education & Knowledge Creation Printing & Publishing Fabricated Metal ** Forestry & Wood Products Machinery Manufacturing Computer & Electronic Product Mining Apparel & Textiles Electrical Equipment Glass & Ceramics Satisfied in region Satisfied outside region $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Millions Data Source: EMSI 2012.4, industry cluster definitions by PCRD
Digging Deeper The Energy Cluster
The Steps in the SET Program Vision & Goals The Team Assets Data A Regional Plan
Seek to: Strengthening Clusters through Import Substitution Identify industries that support the cluster (s) of main interest to the team Determine what goods and services purchased from outside the region might be a good fit for their region Assess the capacity for supplying these inputs regionally Examine how a mix of CARE strategies (creation, attraction, retention and expansion) could be launched to help supply these inputs regionally.
The Plan: Building on the Industry Clusters Creation Encourage the formation of new businesses in the region Attraction Recruit industries or businesses to the region C.A.R.E. Retention Maintain or strengthen existing firms in the region Expansion Encourage the growth of existing firms in the region Source: Barta, et al (2010) CARE Model
Determining Impacts of SET
Outcomes to Date Regional SET Impact Indicators Total States Reporting Number of newly formed regional planning teams 27 28 Number of people serving as members of a regional team Initial members 837 28 New members added (190% increase) 1594 Number of regional economic development plans 10 7 developed Number of jobs created 183 2 Dollar value of grants and resources leveraged/generated by regions Number of teams remaining active Phase I -- 83% Phase II 100% Phase III 100% Phase IV Newly launched $6,739,355 10
SET: Getting Federal Attention
Challenges (so far) Getting traditional players to let more people at the table Getting leaders to embrace regional strategies Dealing with the impact of federal cuts on RD partners Finding people with the right skills to do the training & coaching Getting people engaged and committed Producing a solid regional economic development plan Securing the mix of data needed to document impacts
An Important Decision for Rural Let s work together to make things better. Communities/Counties Get out of my sandbox. I m not playing with you.
Your Turn: Questions and Answers
Who to Contact? Bo Beaulieu Purdue Center for Regional Development 765-494-7273 ljb@purdue.edu Suzette Agans or David Sears USDA Rural Development 202-401-1922 suzette.agans@wdc.usda.gov david.sears@wdc.usda.gov Rachel Welborn Southern Rural Development Center 662-325-5885 rachelw@srdc.msstate.edu The SET Materials: http://srdc.msstate.edu/set/curriculum4.html